ANNUAL REPORT
2018
1
For personal use only TABLE OF
CONTENTS
SciDev Ltd
ABN 25 001 150 849
Consolidated Financial Report
for the Financial Year End
30 June 2018
Contents
Directors' report
Auditor's independence declaration
Statement of profit or loss and other comprehensive income
Statement of financial position
Statement of changes in equity
Statement of cash flows
Notes to the financial statements
Directors' declaration
Independent auditor's report to the members of SciDev Ltd
Shareholder Information
Corporate directory
Page
3
17
18
19
20
21
22
56
57
61
63
2
For personal use only
Letter from the Chairman and Managing Director
26 October 2018
Dear SciDev Shareholder,
This is SciDev Ltd’s (‘SciDev’ or ‘the Company’) seventeenth Annual Report since listing on the Australian Securities
Exchange (ASX) and includes the audited financial statements for the financial year ending 30 June 2018.
During the 2017/18 year, the Company recorded a 15% increase in revenue to $2.213 million due to higher
chemical sales and OptiFlox® System leasing fees. The Company recorded a profit after tax of $1.001 million, which
compares with the loss after tax of $0.597 million for the previous corresponding period. The profit was principally
a result of the sale of Intec Zeehan Residues Pty Ltd, whose principal asset is the mining lease on which is located
the Zeehan slag dump. The consideration received for the sale was principally in the form of shares in Tartana
Resources Limited (Tartana). The value of these shares will be dependent upon the future market price of Tartana
shares, movements in which will be recorded in the Statement of profit or loss for the Company.
The key achievements during the year and to the date of this letter are as follows:
Significant strengthening of the Company’s management through the addition of Lewis Uttiing, Jamiel Muhor
and Steve Ward.
Successful completion of a $860,000 capital raising that was strongly supported by senior management and
the Sinoz Group, which is a globally significant supplier of chemicals and reagents to the mining and
agribusiness industries.
Progress on North American market entry through execution of MOUs with the Phoenix Process Equipment
Co., and the SeyDel Companies Inc., and the receipt of purchase orders for chemical product from a Peabody
Energy mine in the United States.
Validation of the cost and productivity benefits of the OptiFlox® System from its extensive period of
operation at the Wilpinjong coal mine.
Agreements for commercial trials of OptIFlox® Systems at two coking coal operations in the Bowen Basin,
Queensland and at an Iluka Resources mineral sands operation.
Divestment of subsidiary Intec Zeehan Residues Pty Ltd for an agreed consideration of $500,000 and the
staged issue of 15 million shares in Tartana Resources Ltd at a deemed issue price of $0.10 per share.
The key objectives for the current financial year are as follows:
Successful OptiFlox® trials leading to significantly increased chemical sales;
Establishment of North American manufacturing operations; and
Completion of the divestment of Intec Zeehan Residues Pty Ltd.
We would like to thank shareholders for their ongoing support and commitment. We look forward to updating you
on our endeavours and achievements throughout this financial year.
Yours sincerely,
Trevor Jones
Chairman
Kieran Rodgers
Managing Director
3
For personal use only
Directors Report
The following persons were directors of the Company during the whole of the financial year and up to the date of this
report, unless otherwise stated:
SciDev Ltd
Director’s Report
30 June 2018
Trevor A Jones
Kieran G Rodgers
Daniel (Don) J Cronin
Principal activities
The principal activity of the Consolidated Entity is the manufacture and supply of chemicals for industrial wastewater
treatment.
Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Review of operations
The profit for the Consolidated Entity after providing for income tax and non-controlling interest amounted to
$1,001,869 (30 June 2017: loss of $682,151). The profit for the Consolidated Entity was principally a result of the sale
of Intec Zeehan Residues Pty Ltd. This sale resulted in a net gain on disposal of $1,989,200 (refer to Note 6 of the
financial statements). Net cash outflows from operating activities during the year were $892,345 (30 June 2017:
$225,298).
Excluding the sale of Intec Zeehan Residues Pty Ltd, revenue from sales to customers during the year was $2,186,643
(30 June 2017: $1,911,846), representing an increase of 14.4%.
Operational progress
During the year and subsequent to year-end, the Company achieved further industry acceptance of the OptiFlox®
System. At the date of this report, the Company has five systems either installed or shortly to commence commercial
trials.
Wilpinjong thermal coal mine (Peabody Energy)
OptiFlox® System is installed at the tailings thickener and over its period of operation has successfully demonstrated to
the customer material savings in operating costs and significant improvements in productivity.
Dairy manufacturing plant (Lion Dairy & Drinks)
OptiFlox® System is installed in the dissolved air flotation unit in the wastewater treatment plant. Installation
complements existing and ongoing chemical sales at the facility.
Major coking coal operation in Bowen Basin, Queensland
In June 2018, the Company secured a six-month commercial trial with a global leader in coking coal production in the
Bowen Basin of Queensland. The approval of the trial follows extensive on-site technical evaluations by Company
personnel. The OptiFlox® System will be trialed on one of the multiple Phoenix Process Equipment Co. belt press filters
in the coal handling & preparation plant for a trial period of six months. Dependent upon the success of the trial, there
are future opportunities for multiple units to be deployed at the trial site. At the date of this report, the OptiFlox®
System has been deployed to the trial site and is currently in the process of being installed and commissioned.
4
For personal use only
SciDev Ltd
Director’s Report
30 June 2018
Directors Report (continued)
North Goonyella coking coal mine (Peabody Energy)
Subsequent to year-end, the Company received a purchase order for an OptiFlox® System, to be used in a six-
month trial at Peabody Energy’s North Goonyella coking coal mine, in the Bowen Basin, Queensland. The system
will be installed during the December quarter of 2018.
Mineral sands operation (Iluka Resources Limited)
Subsequent to year-end, the Company received a purchase order for a commercial trail of an OptiFlox® System
at an Iluka Resource Limited mineral sands operation. The approval of the trial follows extensive on-site
technical evaluations by Company personnel. The OptiFlox® System will be installed at the tailings thickener
with installation to take place during the December quarter.
By the end of this calendar year, the Company will have five OptiFlox® Systems installed in Australia across four
industries; thermal coal extraction, dairy manufacturing, coking coal extraction and mineral sands production. These
installations enhance the Company’s ability to materially increase revenue from chemical sales.
North American market entry
Phoenix Process Equipment Co.
On 2 January 2018, the Company announced that it had executed an MOU with Phoenix Process Equipment Co.
(Phoenix), the world’s largest integrated supplier of chemicals and dewatering equipment, to investigate joint business
opportunities. Under the MOU, SciDev and Phoenix will evaluate the opportunity for the incorporation of the
Company’s proprietary OptiFlox® technology into Phoenix’s equipment offering, as well as assess the feasibility of a
partnership to manufacture certain chemicals for de-watering operations in selected locations throughout North
America using SciDev manufacturing technology. The following specific matters have either progressed in relation to
the MOU or represent other areas of collaboration:
The imminent trial of an OptiFlox® System on one of the multiple Phoenix belt press filters at a major coking coal
operation in the Bowen Basin, Queensland;
The recent purchase order received for chemical products from a Peabody Energy coal mine in the United
States.
The Seydel Companies Inc.
On 10 January 2018, the Company announced that it had executed an MOU with The Seydel Companies, Inc. (Seydel)
headquartered in Pendergrass, Georgia. Seydel is a leading producer of chemicals essential in the textile & apparel,
paper & packaging, personal care, agriculture and metalworking industries. Under the terms of the MOU, SciDev and
Seydel will collaborate on a business plan to evaluate and potentially establish a facility to manufacture chemicals for
wastewater treatment at Seydel’s facilities in the US utilising SciDev’s manufacturing technology, currently the subject
of a pilot plant trial in SciDev’s Australian facilities.
5
For personal use only
SciDev Ltd
Director’s Report
30 June 2018
Directors Report (continued)
Additions to Management
During the year the Company made significant additions to its management personnel:
Lewis Utting – Project Director
Lewis has over 15 years’ experience in the water treatment, mining and chemical industries, principally with BASF, the
world’s largest chemical producer by chemical sales. Lewis progressed through BASF starting as an Account Manager
and finally becoming the Global Project Manager and Global Business Development Manager for the Mining Solutions
business. Following twelve years with BASF, Lewis’ role with the Company will be primarily focused on driving growth
in revenue through the Company’s existing client base, as well as seeking new business throughout the Australian
mining, dairy, paper and water treatment industries.
Jamiel Muhor – Business Development Manager
Jamiel has over 15 years’ experience in the water treatment, mining and chemical industries. He began his career with
Ciba, who were subsequently acquired by BASF, the world’s largest chemical producer by chemical sales. Jamiel’s most
recent role at BASF was Head of Mining Technology – Asia Pacific. Previous roles at BASF included Global Account
Manager for BHP Billiton, Global Account Manager for Alcoa and Key Account Manager in the Canadian Oil Sands
industry. Jamiel will be working closely with Project Director, Lewis Utting, and will be focused on driving growth in
revenue through the Company’s existing client base, as well as seeking new business throughout the Australian mining,
dairy, paper and water treatment industries.
Steve Ward - Technical Account Manager
Steve Ward has been contracted to support the Company’s operational activities in the dairy and food sector. Steve
has over 30 years of sales, marketing, project management and customer service experience with specialty chemicals
and process control systems. He began his career with Taubmans as a laboratory chemist before moving into the water
treatment sector where he spent 20 years in technical sales and marketing roles with Nalco, one of the world’s leading
water treatment chemical companies. Steve’s most recent role was with Concept Controls where he managed a
specialty water treatment chemical production facility as well as supporting technical sales, marketing and customer
service activities.
Sale of Intec Zeehan Residues Pty Ltd
During the year the Company agreed the sale of Intec Zeehan Residues Pty Ltd, whose principal asset is a Mining Lease
that holds the Zeehan Slag Dump. The proposed sale to Tartana Resources Limited (Tartana) was approved by
shareholders at the Company’s Annual General Meeting on 30 November 2017.
The terms on which the Company agreed to divest its subsidiary to Tartana were as follows:
Issue of 15 million Tartana shares to the Company at a deemed issue price of $0.10 per share;
Payment to SciDev of $250,000 (this occurred in late December 2017); and
Payment to SciDev of an additional $250,000, of which $50,000 has been received with the remaining $200,000
plus accrued interest due by 30 September 2018.
At the date of this report, 7,760,000 Tartana shares, representing 19.9% of the issued capital of Tartana have been
issued to the Company and the balance of the Tartana shares to be issued to the Company, totalling in aggregate
15,000,000, are expected to be issued in a tranched manner in coming months. However, the final cash payment has
not yet been received and the Company has reserved its right to take security over Intec Zeehan Residues Pty Ltd.
Tartana expects to lodge a replacement prospectus shortly thus re-commence capital raising for its Initial Public Offer.
6
For personal use only
SciDev Ltd
Director’s Report
30 June 2018
Directors Report (continued)
Corporate Activities
On 25 June 2018, the Company announced a capital raising of $860,000 via a two-tranche share placement process at
a placement price of $0.006 per share. The share was completed in early August and resulted in the introduction of
both Lewis Utting (Project Director) and Kanins Australia Pty Ltd (Kanins Australia) as substantial shareholders.
Kanins Australia and its associated companies, Sinoz Chemicals and Commodities Pty Ltd (Sinoz), Kemtec Mineral
Processing Pty Ltd (Kemtec) and Kanins International Pty Ltd (Kanins International) are globally significant
manufacturers and suppliers of chemicals and reagents to the mining industry and the agribusiness sector. Both the
SciDev and Sinoz/Kanins/Kemtec (the Sinoz Group) technology portfolios are highly complementary and cover the
entirety of the mineral processing reagent value chain from grinding, beneficiation through to tailings and water
treatment.
SciDev will benefit from existing Sinoz Group customer relationships, which management believes will accelerate
business development activities. The Sinoz Group will benefit from SciDev’s leading chemical and OptiFlox®
technology and mineral processing expertise allowing them to offer end users a complete solution.
Significant changes in the state of affairs
There were no significant changes in the state of affairs of the Consolidated Entity during the financial year.
Matters subsequent to the end of the financial year
On 9 July 2018, the Company received a further payment of $50,000 from Tartana Resources Ltd (Tartana) in relation
to the sale to Tartana of Intec Zeehan Residues Pty Ltd. The remaining payment from Tartana of $210,000, including
accrued interest, is due by 30 September 2018.
On 10 August 2018, the Company completed Tranche 2 of the share placement previously announced on 25 June 2018.
Tranche 2 comprised the placement of 69,110,534 shares at an issue price of 0.6 cents per share to raise $414,663
before costs.
After year-end, a further 800,000 Tartana shares have been issued to the Company. The balance of the Tartana shares
to be issued to the Company, totalling 7,240,000 shares, are expected to be issued in a tranched manner over the
coming months.
On 16 July 2018, the Company announced that it had received a purchase order from Peabody Energy for a six-month
commercial trial of an OptiFlox® System at the North Goonyella coking mine in Queensland.
On 2 September 2018, the Company announced that it had received a purchase order from Iluka Resources Limited for
a multi-month commercial trial of an OptiFlox® System at a mineral sands operation.
On 19 September 2018, the Company announced that it had received a purchase order for chemical products from a
Peabody Energy coal mine in the United States.
On 26 September 2018, the Company announced that it had received a purchase order from Iluka Resources Limited
for a trial of the Company’s chemical products at an Australian mineral sands operation.
On 3 October 2018, the Company announced that it had not received the final payment amount, from Tartana
Resources Pty Ltd being $200,000 plus accrued interest, which was due on 30 September 2018. The Company also
announced that it had agreed the terms of a US$350,000 working capital facility with Kanins International Pty Ltd.
On 25 October 2018, the Company announced that it had received a cash refund of approximately $333,000 under the
Federal Government’s R & D Tax Incentive Program.
No other matter or circumstance has arisen since 30 June 2018 that has significantly affected, or may significantly
affect the Consolidated Entity's operations, the results of those operations, or the Consolidated Entity's state of affairs
in future financial years.
7
For personal use only
SciDev Ltd
Director’s Report
30 June 2018
Directors Report (continued)
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.
Going concern
For the year ended 30 June 2018 the Consolidated Entity generated an operating loss after income tax of $987,331
(2017: $597,340) before taking into account the net gain from the sale of Intec Zeehan Residues Pty Ltd. Net cash
outflows from operations were $892,345 (2017: $225,298) for the year ended 30 June 2018. At 30 June 2018 the
Consolidated Entity had net assets of $3,950,386 (2017: $2,461,700) and cash balances of $568,187 (2017: $938,714).
These matters give rise to a material uncertainty that may cast doubt whether the Consolidated Entity 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 Consolidated Entity 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 Consolidated
Entity being successful in the following:
New customer acquisition;
Commercialisation of the Optiflox® System with resultant increased product sales and technology leasing fees;
and
The raising of sufficient capital by way of either additional debt and/or equity capital.
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 above-mentioned 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.
The company's auditor has, without qualifying their audit opinion, included an 'emphasis of matter' paragraph in their
audit report which draws attention to the aforementioned uncertainty regarding going concern.
Environmental regulation
The Consolidated Entity is not subject to any significant environmental regulation under Australian Commonwealth or
State law.
8
For personal use only
Directors Report (continued)
Information on Directors
Name:
Title:
Qualifications:
Experience and expertise:
SciDev Ltd
Director’s Report
30 June 2018
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 Ltd 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 SciDev on 28 February 2007.
Other current directorships:
Former directorships (last 3 years):
Special responsibilities:
Interests in shares:
Interests in options:
None
None
Chairman of the Corporate Governance Committee and a member of the Audit
Committee and the Nomination and Remuneration Committee
5,742,331
1,000,000
Name:
Title:
Qualifications:
Experience and expertise:
Kieran G Rodgers
Managing Director
B.E. (Hons.) Min. (UNSW), M.B.A. (IMD)
Mr. Rodgers joined SciDev 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 SciDev on 28 February 2007. Mr. Rodgers
was appointed Managing Director on 6 February 2012.
Other current directorships:
Former directorships (last 3 years):
Special responsibilities:
Interests in shares:
Interests in options:
None
None
Managing Director and member of the Corporate Governance Committee
40,183,245
2,000,000
Name:
Title:
Qualifications:
Experience and expertise:
Daniel J Cronin
Non-executive Director
B.E. (Uni. College, Cork) M.Sc. (Southampton), MBA (LBS)
Mr. Cronin was appointed to the Board of SciDev 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.
Other current directorships:
Former directorships (last 3 years):
Special responsibilities:
Interests in shares:
Interests in options:
None
None
Chairman of the Audit Committee and a member of the Corporate Governance
Committee and the Nomination and Remuneration Committee
4,659,554
2,000,000
9
For personal use only
SciDev Ltd
Director’s Report
30 June 2018
Directors Report (continued)
'Other current directorships' quoted above are current directorships for listed entities only and excludes directorships
of all other types of entities, unless otherwise stated.
'Former directorships (last 3 years)' quoted above are directorships held in the last 3 years for listed entities only and
excludes directorships of all other types of entities, unless otherwise stated.
Company secretary
Mr Heath L Roberts (Dip Law (S.A.B.) and Grad Dip Legal Practice (UTS)) was appointed to the position of Company
Secretary of SciDev Ltd on 1 March 2017. Mr Roberts is a commercial solicitor with over 20 years of listed company
experience. He has acted for SciDev in various capacities over the years and brings strong transactional, compliance
and capital raising experience to the role.
Meetings of directors
The number of meetings of the company's Board of Directors ('the Board') held during the year ended 30 June 2018,
and the number of meetings attended by each director were:
Full Board
Nomination and
Remuneration Committee*
Audit Committee
Attended
Held Attended
Held Attended
Held
Trevor A Jones
Kieran G Rodgers
Daniel J Cronin
12
12
12
12
12
12
-
-
-
-
-
-
3
-
3
3
-
3
Held: represents the number of meetings held during the time the director held office.
* The Nomination and Remuneration Committee did not meet during the financial year.
Remuneration report (audited)
The remuneration report details the key management personnel remuneration arrangements for the Consolidated
Entity, in accordance with the requirements of the Corporations Act 2001 and its Regulations.
Key management personnel are those persons having authority and responsibility for planning, directing and
controlling the activities of the entity, directly or indirectly, including all directors.
The remuneration report is set out under the following main headings:
Principles used to determine the nature and amount of remuneration
Details of remuneration
Service agreements
Share-based compensation
Additional information
Additional disclosures relating to key management personnel
Principles used to determine the nature and amount of remuneration
The objective of the Consolidated Entity's executive reward framework is to ensure reward for performance is
competitive and appropriate for the results delivered. The framework aligns executive reward with the achievement of
strategic objectives and the creation of value for shareholders, and it is considered to conform to the market best
practice for the delivery of reward. The Board of Directors ('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.
10
For personal use only
SciDev Ltd
Director’s Report
30 June 2018
Directors Report (continued)
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 remuneration
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. The amount paid to non-executive
directors of the parent entity (SciDev Ltd) during the year to 30 June 2018 was $125,316 (2017: $127,316). In addition,
Non-Executive Directors are able to participate in issues of options pursuant to the SciDev 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.
Executive remuneration
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 SciDev Employee Share Scheme.
The combination of these comprises the executive's total remuneration.
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.
SciDev Employee Share Scheme
Information on the Intec Employee Share Scheme is set out in note 35. Participation in the SciDev Employee Share
Scheme is at the discretion of the Board and there is no guarantee of annual participation by any executive.
Use of remuneration consultants
The company did not engage remuneration consultants during the financial year ended 30 June 2018.
Voting and comments made at the company's 30 November 2017 Annual General Meeting ('AGM')
At the 30 November 2017 AGM, 84% of the votes received supported the adoption of the remuneration report for the
year ended 30 June 2017. The company did not receive any specific feedback at the AGM regarding its remuneration
practices.
11
For personal use only
SciDev Ltd
Director’s Report
30 June 2018
Directors Report (continued)
Details of remuneration
Amounts of remuneration
Details of the remuneration of key management personnel of the Consolidated Entity are set out in the following
tables.
The key management personnel of the Consolidated Entity consisted of the following directors of SciDev Ltd:
Trevor A Jones - Non-executive Chairman
Daniel J Cronin - Non-executive Director
Kieran G Rodgers - Managing Director
And the following person:
Lewis E Utting - Project Director (1 appointed March 2018)
Short-term benefits
Cash salary Consulting
and fees
$
fees
$
Non-
monetary
$
Post-
employment
benefits
Long-term
benefits
Super-
annuation
$
Long service
leave
$
Total
$
69,444
45,000
268,424
72,917
455,785
-
-
-
-
-
-
-
6,597
4,275
-
-
76,041
49,275
2,259
20,900
31,007
322,590
-
2,259
6,927
38,699
-
31,007
79,844
527,750
2018
Non-Executive Directors:
Trevor A Jones (Chairman)
Daniel J Cronin
Executive Directors:
Kieran G Rodgers 1
Other Key Management
Personnel:
Lewis E Utting 2
1. Cash salary and fees includes $32,423 of accrued annual leave paid out.
2. Lewis Utting was appointed Project Director on 1 March 2018.
Short-term benefits
Cash salary Consulting
and fees
$
fees
$
Non-
monetary
$
Post-
employment
benefits
Long-term
benefits
Super-
annuation
$
Long service
leave
$
Total
$
2017
Non-Executive Directors:
Trevor A Jones (Chairman)
Daniel J Cronin
Executive Directors:
Kieran G Rodgers
69,444
45,000
-
2,000
-
-
6,597
4,275
-
-
76,041
51,275
215,000
329,444
-
2,000
27,128
27,128
20,425
31,297
9,137
9,137
271,690
399,006
12
For personal use only
SciDev Ltd
Director’s Report
30 June 2018
Directors Report (continued)
Details of remuneration
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Name
Non-Executive Directors:
Trevor A Jones (Chairman)
Daniel J Cronin
Executive Directors:
Kieran G Rodgers
Other Key Management
Personnel:
Lewis E Utting
Service agreements
Fixed remuneration
2017
2018
At risk - STI
At risk - LTI
2018
2017
2018
2017
100%
100%
100%
100%
100%
100%
100%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Remuneration and other terms of employment for key management personnel are formalised in service agreements.
Details of these agreements are as follows:
Name:
Title:
Agreement commenced:
Term of agreement:
Details:
Name:
Title:
Agreement commenced:
Term of agreement:
Details:
Kieran G Rodgers
Managing Director
1 March 2018
Ongoing
Base salary for the year ended 30 June 2018 of $260,000 plus superannuation, to be
reviewed annually by the Nomination and Remuneration Committee. The contract
may be terminated by 6 months’ notice from either party.
Lewis E Utting
Project Director
1 March 2018
Ongoing
Base salary for the year ended 30 June 2018 of $250,000 plus superannuation, to be
reviewed annually by the Managing Director. The contract may be terminated by 6
months’ notice from either party.
Key management personnel have no entitlement to termination payments in the event of removal for misconduct.
Share-based compensation
Issue of shares
There were no shares issued to directors and other key management personnel as part of compensation during the
year ended 30 June 2018.
Options
There were no options over ordinary shares granted to or vested by directors and other key management personnel as
part of compensation during the year ended 30 June 2018.There were no options for directors and other key
management personnel that lapsed during the year ended 30 June 2018.
13
For personal use only
SciDev Ltd
Director’s Report
30 June 2018
Directors Report (continued)
Additional Information
The earnings of the Consolidated Entity for the five years to 30 June 2018 are summarised below:
2018
$
2017
$
2016
$
2015
$
2014
$
Sales revenue
Loss after income tax
2,029,373
1,001,869
1,846,985
(597,340)
1,352,346
(458,130)
1,316,493
(856,446)
911,740
(1,261,134)
Additional disclosures relating to key management personnel
Shareholding
The number of shares in the company held during the financial year by each director and other members of key
management personnel of the Consolidated Entity, including their personally related parties, is set out below:
Option holding
Ordinary shares
Trevor A Jones
Kieran G Rodgers
Daniel J Cronin
Lewis E Utting
Balance at
the start of
the year
Received
as part of
remuneration Additions
Disposals/
other
Balance at
the end of
the year
5,742,331
23,516,577
4,659,554
-
33,918,462
-
-
-
-
-
-
- 35,512,267
- 35,512,267
-
5,742,331
- 23,516,577
-
4,659,554
- 35,512,267
- 69,430,729
The number of options over ordinary shares in the company held during the financial year by each director and other
members of key management personnel of the Consolidated Entity, including their personally related parties, is set out
below:
Loans to key management personnel and their related parties
Options over ordinary shares
Trevor A Jones
Kieran G Rodgers
Daniel J Cronin
Lewis E Utting
Balance at
the start of
the year
Granted
Exercised
1,000,000
2,000,000
2,000,000
-
5,000,000
-
-
-
5,000,000
-
Expired/
forfeited/
other
Balance at
the end of
the year
-
-
-
-
-
1,000,000
-
2,000,000
-
2,000,000
-
-
5,000,000
- 10,000,000
There were no loans owing by key management personnel of the group, including their close family members and
entities related to them, during the financial year ended 30 June 2018.
Other transactions with key management personnel and their related parties
There were no other transactions with key management personnel of the group, including their close family members
and entities related to them, during the financial year ended 30 June 2018.
This concludes the remuneration report, which has been audited.
14
For personal use only
SciDev Ltd
Director’s Report
30 June 2018
Directors Report (continued)
Shares under option
Unissued ordinary shares of SciDev Ltd under option at the date of this report are as follows:
Grant date
Expiry date
10 December 2014*
2 February 2017**
14 August 2017*
28 December 2017***
28 November 2019
28 November 2019
28 November 2019
28 November 2019
Exercise
price
Number
under option
$0.025
$0.025
$0.025
$0.025
5,500,000
22,500,000
6,500,000
5,000,000
39,500,000
*
**
***
Options granted under the SciDev Employee Share Scheme
Options granted to the Lead Manager and Underwriter for services rendered in connection with the placement of shares and a share
purchase plan
Options granted to a key service provider (non-Director) for services rendered.
No person entitled to exercise the options had or has any right by virtue of the option to participate in any share issue
of the company or of any other body corporate.
No options were granted to the directors or any of the five highest remunerated officers of the company since the end
of the financial year.
Shares issued on the exercise of options
There were no ordinary shares of SciDev Ltd issued on the exercise of options during the year ended 30 June 2018 and
up to the date of this 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 contract to insure the directors and executives
of the company against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance
prohibits disclosure of the nature of the liability and the amount of the premium.
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 contract 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.
15
For personal use only
SciDev Ltd
Director’s Report
30 June 2018
Directors Report (continued)
Non-audit services
Details of the amounts paid or payable to the auditor for non-audit services provided during the financial year by the
auditor are outlined in note 25 to the financial statements.
The directors are of the opinion that the services as disclosed in note 25 to the financial statements do not
compromise the external auditor's independence requirements of the Corporations Act 2001 for the following reasons:
all non-audit services have been reviewed and approved to ensure that they do not impact the integrity and
objectivity of the auditor; and
none of the services undermine the general principles relating to auditor independence as set out in APES 110
Code of Ethics for Professional Accountants issued by the Accounting Professional and Ethical Standards Board,
including reviewing or auditing the auditor's own work, acting in a management or decision-making capacity for
the company, acting as advocate for the company or jointly sharing economic risks and rewards.
Officers of the company who are former partners of Rothsay Chartered Accountants
There are no officers of the company who are former partners of Rothsay Chartered Accountants.
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 immediately after this directors' report.
Auditor
Rothsay Chartered Accountants continues in office in accordance with section 327 of the Corporations Act 2001.
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 G Rodgers
Managing Director
26 October 2018
Sydney
16
For personal use only
AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001
As lead auditor of SciDev Limited for the year ended 30 June 2018, 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 the audit.
Rothsay Chartered Accountants
Frank Vrachas
Partner
Sydney, 27 September 2018
14
For personal use only
Statement of profit or loss and other comprehensive income
SciDev Ltd
Statement of profit or loss and other comprehensive income
For the year ended 30 June 2018
Revenue
Other income
Expenses
Changes in inventories
Raw materials and consumables used
Employee benefits expense
Depreciation and amortisation expense
Engineering and other consultants expenses
Insurance
Listing and share registry expenses
Professional fees
Rent and related expenses
Travel, accommodation and conference
Other expenses
Finance costs
Note
5
6
2018
$
2017
$
2,213,767
2,336,187
1,925,233
243,802
(4,345)
(1,251,282)
(1,006,057)
(194,171)
(2,896)
(46,067)
(35,075)
(557,902)
(151,050)
(143,211)
(158,060)
(6,111)
(46,673)
(955,068)
(741,253)
(152,193)
(157,684)
(44,081)
(38,635)
(153,016)
(124,467)
(90,162)
(112,970)
(26,628)
Profit/(loss) before income tax benefit/(expense)
993,727
(473,795)
Income tax benefit/(expense)
8
8,142
(123,545)
Profit/(loss) after income tax benefit/(expense) for the year
1,001,869
(597,340)
Other comprehensive income for the year, net of tax
Total comprehensive income for the year
Profit/(loss) for the year is attributable to:
Non-controlling interest
Owners of SciDev Ltd
Total comprehensive income for the year is attributable to:
Non-controlling interest
Owners of SciDev Ltd
-
1,001,869
-
(597,340)
-
1,001,869
84,811
(682,151)
1,001,869
(597,340)
-
1,001,869
84,811
(682,151)
1,001,869
(597,340)
Cents
Cents
Basic earnings per share
Diluted earnings per share
34
34
0.20
0.20
(0.23)
(0.23)
18
For personal use only
Statement of financial position
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Other
Total current assets
Non-current assets
Available-for-sale financial assets
Property, plant and equipment
Intangibles
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Borrowings
Employee benefits
Total current liabilities
Non-current liabilities
Borrowings
Deferred tax
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
SciDev Ltd
Statement of financial position
As at 30 June 2018
Note
2018
$
2017
$
9
10
11
12
13
14
15
16
17
18
8
568,187
727,946
236,184
1,754
1,534,071
938,714
334,017
231,839
1,754
1,506,324
1,502,900
260,954
1,266,033
3,029,887
2,900
291,201
1,279,803
1,573,904
4,563,958
3,080,228
370,279
31,938
167,247
569,464
358,410
11,957
163,365
533,732
-
44,108
44,108
32,546
52,250
84,796
613,572
618,528
3,950,386
2,461,700
19
20
74,118,627
2,210,703
73,673,290
2,169,223
(72,378,944) (73,380,813)
3,950,386
2,461,700
19
For personal use only
SciDev Ltd
Statement of changes in equity
For the year ended 30 June 2018
Statement of changes in equity
Issued
capital
$
Reserves
$
Accumulated
losses
$
Non-
controlling
interest
$
Total equity
$
Balance at 1 July 2016
71,641,977
2,653,594
(72,698,662)
169,990
1,766,899
Profit/(loss) after income tax expense for
the year
Other comprehensive income for the year,
net of tax
Total comprehensive income for the year
Transactions with owners in their capacity
as owners:
Contributions of equity, net of transaction
costs (note 19)
Share-based payments (note 35)
Transactions with non-controlling interests
-
-
-
-
-
(682,151)
84,811
(597,340)
-
-
-
-
(682,151)
84,811
(597,340)
2,031,313
-
-
-
160,828
(645,199)
-
-
-
-
-
(254,801)
2,031,313
160,828
(900,000)
Balance at 30 June 2017
73,673,290
2,169,223
(73,380,813)
-
2,461,700
Issued
capital
$
Reserves
$
Accumulated
losses
$
Non-
controlling
interest
$
Total equity
Total equity
$
Balance at 1 July 2017
73,673,290
2,169,223
(73,380,813)
-
1,001,869
-
-
-
-
-
-
1,001,869
-
1,001,869
-
-
-
2,461,700
1,001,869
-
Profit after income tax benefit for the year
Other comprehensive income for the year,
net of tax
Total comprehensive income for the year
Transactions with owners in their capacity
as owners:
Contributions of equity, net of transaction
costs (note 19)
Share-based payments (note 35)
445,337
-
-
41,480
-
-
-
-
445,337
41,480
Balance at 30 June 2018
74,118,627
2,210,703
(72,378,944)
-
3,950,386
20
For personal use only
Statement of cash flows
Cash flows from operating activities
Receipts from customers (inclusive of GST)
Payments to suppliers and employees (inclusive of GST)
Interest received
R&D tax offset received
Interest and other finance costs paid
Income taxes paid
SciDev Ltd
Statement of cash flows
For the year ended 30 June 2018
Note
2018
$
2017
$
2,311,575
(3,507,670)
1,999,539
(2,304,164)
(1,196,095)
6,749
303,112
(6,111)
-
(304,625)
13,387
218,492
(26,628)
(125,924)
Net cash used in operating activities
32
(892,345)
(225,298)
Cash flows from investing activities
Payments for non-controlling interest in subsidiary
Payments for property, plant and equipment
Payments for intangibles
Payments for security deposits
Proceeds from disposal of Zeehan Project
Net cash from/(used in) investing activities
Cash flows from financing activities
Proceeds from issue of shares
Share issue transaction costs
Repayment of borrowings
Net cash from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
13
14
19
-
(97,045)
(53,109)
(10,800)
250,000
(660,000)
(190,764)
(52,143)
-
-
89,046
(902,907)
445,337
-
(12,565)
2,100,000
(147,859)
(363,311)
432,772
1,588,830
(370,527)
938,714
460,625
478,089
Cash and cash equivalents at the end of the financial year
9
568,187
938,714
21
For personal use only
SciDev Ltd
Notes to the financial statements
30 June 2018
Notes to the financial statements
Note 1. General information
The financial statements cover SciDev Ltd as a Consolidated Entity consisting of SciDev Ltd and the entities it controlled
at the end of, or during, the year. The financial statements are presented in Australian dollars, which is SciDev Ltd's
functional and presentation currency.
SciDev Ltd is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office
and principal place of business is:
Suite 105
48 Atchison Street
St Leonards
NSW 2065
A description of the nature of the Consolidated Entity's operations and its principal activities are included in the
directors' report, which is not part of the financial statements.
The financial statements were authorised for issue, in accordance with a resolution of directors, on 27 September
2018. The directors have the power to amend and reissue the financial statements.
Note 2. Significant accounting policies
The principal accounting policies adopted in the preparation of the financial statements are set out either in the
respective notes or below. These policies have been consistently applied to all the years presented, unless otherwise
stated.
New or amended Accounting Standards and Interpretations adopted
The Consolidated Entity has adopted all of the new or amended Accounting Standards and Interpretations issued by
the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period. None of the
new standards and amendments to standards affected any of the amounts recognised in the current period or any
prior period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early
adopted.
Going concern
For the year ended 30 June 2018 the Consolidated Entity generated an operating loss after income tax of $987,331
(2017: $597,340) before taking into account the net gain from the sale of Intec Zeehan Residues Pty Ltd. Net cash
outflows from operations were $892,345 (2017: $225,298) for the year ended 30 June 2018. At 30 June 2018 the
Consolidated Entity had net assets of $3,950,386 (2017: $2,461,700) and cash balances of $568,187 (2017: $938,714).
These matters give rise to a material uncertainty that may cast doubt whether the Consolidated Entity 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 Consolidated Entity 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 Consolidated
Entity being successful in the following:
New customer acquisition;
Commercialisation of the Optiflox® System with resultant increased product sales and technology leasing fees;
and
The raising sufficient capital by way of either additional debt and/or equity capital.
22
For personal use only
SciDev Ltd
Notes to the financial statements
30 June 2018
Note 2. Significant accounting policies (continued)
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 above-mentioned 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.
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 as issued by the International Accounting Standards Board ('IASB').
Historical cost convention
The financial statements have been prepared under the historical cost convention, except for, where applicable,
financial assets and liabilities at fair value through profit or loss.
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 Consolidated Entity's accounting policies. The
areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant
to the financial statements, are disclosed in note 3.
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the Consolidated Entity
only. Supplementary information about the parent entity is disclosed in note 28.
Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of SciDev Ltd ('company'
or 'parent entity') as at 30 June 2018 and the results of all subsidiaries for the year then ended. SciDev Ltd and its
subsidiaries together are referred to in these financial statements as the 'Consolidated Entity'.
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 to direct the activities of 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. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the
asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with
the policies adopted by the Consolidated Entity.
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 book value of the share of the non-controlling interest acquired is recognised
directly in equity attributable to the parent.
23
For personal use only
SciDev Ltd
Notes to the financial statements
30 June 2018
Note 2. Significant accounting policies (continued)
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.
Foreign currency translation
The financial statements are presented in Australian dollars, which is SciDev Ltd's functional and presentation
currency.
Foreign currency transactions
Foreign currency transactions are translated into Australian dollars using the exchange rates prevailing at the dates of
the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the
translation at financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies
are recognised in profit or loss.
Foreign operations
The assets and liabilities of foreign operations are translated into Australian dollars using the exchange rates at the
reporting date. The revenues and expenses of foreign operations are translated into Australian dollars using the
average exchange rates, which approximate the rates at the dates of the transactions, for the period. All resulting
foreign exchange differences are recognised in other comprehensive income through the foreign currency reserve in
equity.
The foreign currency reserve is recognised in profit or loss when the foreign operation or net investment is disposed of.
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current
classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the
Consolidated Entity's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised
within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being
exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets are classified as
non-current.
A liability is classified as current when: it is either expected to be settled in the Consolidated Entity's normal operating
cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period;
or there is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting
period. All other liabilities are classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
Investments and other financial assets
Investments and other financial assets are initially measured at fair value. Transaction costs are included as part of the
initial measurement, except for financial assets at fair value through profit or loss. They are subsequently measured at
either amortised cost or fair value depending on their classification. Classification is determined based on the purpose
of the acquisition and subsequent reclassification to other categories is restricted.
Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have
been transferred and the Consolidated Entity has transferred substantially all the risks and rewards of ownership.
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in
an active market. They are carried at amortised cost using the effective interest rate method. Gains and losses are
recognised in profit or loss when the asset is derecognised or impaired.
24
For personal use only
SciDev Ltd
Notes to the financial statements
30 June 2018
Note 2. Significant accounting policies (continued)
Available-for-sale financial assets
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 of financial assets
The Consolidated Entity assesses at the end of each reporting period whether there is any objective evidence that a
financial asset or group of financial assets is impaired. Objective evidence includes significant financial difficulty of the
issuer or obligor; a breach of contract such as default or delinquency in payments; the lender granting to a borrower
concessions due to economic or legal reasons that the lender would not otherwise do; it becomes probable that the
borrower will enter bankruptcy or other financial reorganisation; the disappearance of an active market for the
financial asset; or observable data indicating that there is a measurable decrease in estimated future cash flows.
The amount of the impairment allowance for loans and receivables carried at amortised cost is the difference between
the asset's carrying amount and the present value of estimated future cash flows, discounted at the original effective
interest rate. If there is a reversal of impairment, the reversal cannot exceed the amortised cost that would have been
recognised had the impairment not been made and is reversed to profit or loss.
Available-for-sale financial assets are considered impaired when there has been a significant or prolonged decline in
value below initial cost. Subsequent increments in value are recognised in other comprehensive income through the
available-for-sale reserve.
Leases
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, 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.
Operating lease payments, net of any incentives received from the lessor, are charged to profit or loss on a straight-
line basis over the term of the lease.
Impairment of non-financial assets
Goodwill and other intangible assets that have an indefinite useful life are not subject to amortisation and are tested
annually for impairment, or more frequently if events or changes in circumstances indicate that they might be
impaired. Other non-financial assets are reviewed for impairment whenever events or changes in circumstances
indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which
the asset's carrying amount exceeds its recoverable amount.
25
For personal use only
SciDev Ltd
Notes to the financial statements
30 June 2018
Note 2. Significant accounting policies (continued)
Impairment of non-financial assets (continued)
Recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. The value-in-use is the
present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset
or cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped
together to form a cash-generating unit.
Finance costs
Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs are expensed
in the period in which they are incurred.
Goods and Services Tax ('GST') and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not
recoverable from the tax authority. In this case it is recognised as part of the cost of the 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 tax authority is included in other receivables or other 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 tax 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.
New Accounting Standards and Interpretations not yet mandatory or early adopted
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
2018. 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 9 Financial Instruments
This standard is applicable to annual reporting periods beginning on or after 1 January 2018. The standard replaces all
previous versions of AASB 9 and completes the project to replace IAS 39 'Financial Instruments: Recognition and
Measurement'. AASB 9 introduces new classification and measurement models for financial assets. A financial asset
shall be measured at amortised cost, if it is held within a business model whose objective is to hold assets in order to
collect contractual cash flows, which arise on specified dates and solely principal and interest. All other financial
instrument assets are to be classified and measured at fair value through profit or loss unless the entity makes an
irrevocable election on initial recognition to present gains and losses on equity instruments (that are not held-for-
trading) in other comprehensive income ('OCI'). New impairment requirements will use an 'expected credit loss' ('ECL')
model to recognise an allowance. Impairment will be measured under a 12-month ECL method unless the credit risk on
a financial instrument has increased significantly since initial recognition in which case the lifetime ECL method is
adopted. The standard introduces additional new disclosures.
The Consolidated Entity has reviewed its financial assets and liabilities and expects the following impact from the
adoption of the new standard from 1 July 2018:
(a)
The assets currently classified as available-for-sale will satisfy the conditions for classification as at fair value
through other comprehensive income (FVOCI) and hence there will be no change to the accounting for these
assets. Accordingly, the Consolidated Entity does not expect the new guidance to affect the classification and
measurement of these financial assets. However, gains or losses realised on the sale of financial assets at FVOCI
will no longer be transferred to profit or loss on sale, but instead reclassified below the line from the FVOCI
reserve to retained earnings. If the irrevocable election is not made, all changes in fair value will no longer be
reflected in equity, but rather through profit or loss.
Based on the assessments undertaken to date, the Consolidated Entity does not expect any material change in
the impairment provision for trade receivables.
(b)
26
For personal use only
SciDev Ltd
Notes to the financial statements
30 June 2018
Note 2. Significant accounting policies (continued)
The Consolidated Entity will adopt this standard from 1 July 2018 and will apply the new rules retrospectively from 1
July 2018, with the practical expedients permitted under the standard. Comparatives for 2018 will not be restated.
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 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 judgements 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 has conducted a initial review of
its contracts with customers and does not currently anticipate any significant changes to the timing of recognition of
revenue.
The Consolidated Entity will adopt this standard from 1 July 2018 and intends to adopt the standard using the modified
retrospective approach which means that the cumulative impact of the adoption will be recognised in retained
earnings as of 1 July 2018 and that comparatives will not be restated.
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 at 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.
27
For personal use only
SciDev Ltd
Notes to the financial statements
30 June 2018
Note 3. Critical accounting judgements estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates and assumptions
that affect the reported amounts in the financial statements. Management continually evaluates its judgements and
estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its
judgements, estimates and assumptions on historical experience and on other various factors, including expectations
of future events, management believes to be reasonable under the circumstances. The resulting accounting
judgements and estimates will seldom equal the related actual results. The judgements, estimates and assumptions
that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities (refer to
the respective notes) within the next financial year are discussed below.
Goodwill
The Consolidated Entity tests annually, or more frequently if events or changes in circumstances indicate impairment,
whether goodwill has suffered any impairment, in accordance with the accounting policy stated in note 2. The
recoverable amounts of cash-generating units have been determined based on value-in-use calculations. These
calculations require the use of assumptions, including estimated discount rates based on the current cost of capital
and growth rates of the estimated future cash flows. For information relating to the value-in-use calculations refer to
note 14.
Note 4. Operating Segments
Identification of reportable operating segments
The Consolidated Entity 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.
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.
Major customers
During the year ended 30 June 2018 approximately 52% (2017: 41%) of the Consolidated Entity's external revenue was
derived from sales to the Consolidated Entity's largest customer. No other customer contributed 10% or more to the
Consolidated Entity's revenue for both 2018 and 2017.
Revenue by geographical area
The Consolidated Entity operates in one geographical segment being Australia. Revenue from overseas customers is
not material to the Consolidated Entity.
Accounting policy for operating segments
Operating segments are presented using the 'management approach', where the information presented is on the same
basis as the internal reports provided to the Chief Operating Decision Makers ('CODM'). The CODM is responsible for
the allocation of resources to operating segments and assessing their performance.
28
For personal use only
Note 5. Revenue
Sales revenue
Treatment fees and product sales
Other revenue
Interest
Royalty
Other revenue
Revenue
SciDev Ltd
Notes to the financial statements
30 June 2018
2018
$
2017
$
2,029,373 1,846,985
12,999
14,125
157,270
184,394
13,387
-
64,861
78,248
2,213,767 1,925,233
Accounting policy for revenue recognition
Revenue is recognised when it is probable that the economic benefit will flow to the Consolidated Entity and the
revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable.
Sale of goods
Sale of goods revenue 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
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.
Interest
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating
the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective
interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the
financial asset to the net carrying amount of the financial asset.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
Note 6. Other income
Net foreign exchange gain
Net gain on disposal of Intec Zeehan Residues Pty Ltd (refer note 12)
Subsidies and grants
Reimbursement of expenses
Other income
2018
$
20,181
1,989,200
303,112
23,694
2017
$
-
-
218,492
25,310
2,336,187
243,802
29
For personal use only
Note 7. Expenses
Profit/(loss) before income tax includes the following specific expenses:
Rental expense relating to operating leases
Minimum lease payments
Superannuation expense
Defined contribution superannuation expense
Note 8. Income tax
Income tax expense/(benefit)
Current tax
Deferred tax - origination and reversal of temporary differences
Aggregate income tax expense/(benefit)
Deferred tax included in income tax expense/(benefit) comprises:
Decrease in deferred tax liabilities
Numerical reconciliation of income tax expense/(benefit) and tax at the statutory rate
Profit/(loss) before income tax benefit/(expense)
Tax at the statutory tax rate of 27.5%
Tax effect amounts which are not deductible/(taxable) in calculating taxable income:
Non-deductible expenses
Non-assessable income
Current year tax losses not recognised
Current year temporary differences not recognised
Adjustment to deferred tax balances
Income tax expense/(benefit)
Tax losses not recognised
Unused tax losses for which no deferred tax asset has been recognised
Potential tax benefit @ 27.5%
SciDev Ltd
Notes to the financial statements
30 June 2018
2018
$
2017
$
106,519
110,331
74,951
59,663
2018
$
2017
$
-
(8,142)
137,177
(13,632)
(8,142)
123,545
(8,142)
(13,632)
993,727
(473,795)
273,275
(130,294)
43,105
(630,386)
3,328
-
(314,006)
340,933
(30,715)
(4,354)
(126,966)
239,128
11,383
-
(8,142)
123,545
2018
$
2017
$
66,114,631 64,874,876
18,181,524 17,840,591
The above potential tax benefit for tax losses has not been recognised in the statement of financial position. These tax
losses can only be utilised in the future if the continuity of ownership test is passed, or failing that, the same business
test is passed.
30
For personal use only
Note 8. Income tax (continued)
Deferred tax liability
Deferred tax liability comprises temporary differences attributable to:
Amounts recognised in profit or loss:
Brand name
Deferred tax liability
Movements:
Opening balance
Credited to profit or loss
Closing balance
SciDev Ltd
Notes to the financial statements
30 June 2018
2018
$
2017
$
44,108
52,250
44,108
52,250
52,250
(8,142)
65,882
(13,632)
44,108
52,250
Accounting policy for income tax
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.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied
when the assets are recovered, or liabilities are settled, based on those tax rates that are enacted or substantively
enacted, except for:
When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or
liability in a transaction that is not a business combination and that, at the time of the transaction, affects
neither the accounting nor taxable profits; or
When the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures,
and the timing of the reversal can be controlled, and it is probable that the temporary difference will not reverse
in the foreseeable future.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable
that future taxable amounts will be available to utilise those temporary differences and losses.
The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting date.
Deferred tax assets recognised are reduced to the extent that it is no longer probable that future taxable profits will be
available for the carrying amount to be recovered. Previously unrecognised deferred tax assets are recognised to the
extent that it is probable that there are future taxable profits available to recover the asset.
Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets
against current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable
authority on either the same taxable entity or different taxable entities which intend to settle simultaneously.
SciDev Ltd (the 'head entity') and its wholly-owned Australian subsidiaries have formed an income tax consolidated
group under the tax consolidation regime. 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 applied the 'separate
taxpayer within group' approach in determining the appropriate amount of taxes to allocate to members of the tax
consolidated group.
31
For personal use only
SciDev Ltd
Notes to the financial statements
30 June 2018
Note 8. Income tax (continued)
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 tax consolidated group.
Assets or liabilities arising under tax funding agreements with the tax consolidated entities are recognised 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.
Note 9. Current assets—cash and cash equivalents
Cash on hand
Cash at bank
Cash on deposit
2018
$
2017
$
150
568,037
-
150
438,564
500,000
568,187
938,714
Accounting policy for cash and cash equivalents
Cash and cash equivalents include cash on hand, deposits held at call with financial institutions, other short-term,
highly liquid investments with original maturities of three months or less that are readily convertible to known
amounts of cash and which are subject to an insignificant risk of changes in value.
Note 10. Current assets—trade and other receivables
Trade receivables
Other receivables
Amount due by Tartana Resources Ltd
2018
$
2017
$
457,430
14,266
256,250
303,480
30,537
-
727,946
334,017
Past due but not impaired
Customers with balances past due but without provision for impairment of receivables amount to $198,648 as at 30
June 2018 ($127,650 as at 30 June 2017).
The Consolidated Entity did not consider a credit risk on the aggregate balances after reviewing the credit terms of
customers based on recent collection practices.
32
For personal use only
Note 10. Current assets—trade and other receivables (continued)
The ageing of the past due but not impaired receivables are as follows:
Past due 1-30 days
Past due 31-60 days
Past due 61+ days
SciDev Ltd
Notes to the financial statements
30 June 2018
2018
$
2017
$
105,675
31,713
61,260
105,718
21,932
-
198,648
127,650
Accounting policy for trade and other receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective
interest method, less any provision for impairment. Trade receivables are generally due for settlement within 30 days.
Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectable are
written off by reducing the carrying amount directly. A provision for impairment of trade receivables is raised when
there is objective evidence that the Consolidated Entity will not be able to collect all amounts due according to the
original terms of the receivables. Significant financial difficulties of the debtor, probability that the debtor will enter
bankruptcy or financial reorganisation and default or delinquency in payments (more than 60 days overdue) are
considered indicators that the trade receivable may be impaired. The amount of the impairment allowance is the
difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at
the original effective interest rate. Cash flows relating to short-term receivables are not discounted if the effect of
discounting is immaterial.
Other receivables are recognised at amortised cost, less any provision for impairment.
Note 11. Current assets—inventories
Stock on hand - at cost
2018
$
2017
$
236,184
231,839
Accounting policy for inventories
Stock on hand is stated at the lower of cost and net realisable value. Cost comprises of purchase and delivery costs, net
of rebates and discounts received or receivable.
Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of
completion and the estimated costs necessary to make the sale.
Note 12. Non-current assets—available for sale financial assets
Unlisted equity securities
Consideration from disposal of Intec Zeehan Residues Pty Ltd*
2018
$
2017
$
698,900
804,000
2,900
-
1,502,900
2,900
33
For personal use only
Note 12. Non-current assets—available for sale financial assets
The ageing of the past due but not impaired receivables are as follows:
Unlisted equity securities
Consideration from disposal of Intec Zeehan Residues Pty Ltd*
SciDev Ltd
Notes to the financial statements
30 June 2018
2018
$
2017
$
698,900
804,000
2,900
-
1,502,900
2,900
Refer to note 23 for further information on fair value measurement.
* On 25 October 2017, SciDev Ltd (SDV) entered into a conditional sale agreement to dispose of Intec Zeehan
Residues Pty Ltd (IZR), whose principal asset was the Zeehan Zinc Project. The disposal was in order to generate
cash flow for the expansion of the Consolidated Entity's core businesses. The disposal was completed on 22
January 2018, on which date control of IZR passed to the acquirer, Tartana Resources Ltd (Tartana).
The total consideration was $2,000,000 in cash and shares in Tartana. The first payment of $250,000 was received
in December 2017. A further payment of $50,000 was received on 9 July 2018. The remaining payment of
$210,000, including accrued interest, is due by 30 September 2018. Prior to year-end, SciDev had been allotted
6,960,000 ordinary shares in Tartana at a deemed issue price of 10 cents per share. Subsequent to year-end a
further 800,000 Tartana shares have been issued to SciDev. The balance of the Tartana shares to be issued to
SciDev, totalling 7,240,000 shares, are expected to be issued in a tranched manner over the coming months.
Note 13. Non-current assets—property, plant and equipment
Plant and equipment - at cost
Less: Accumulated depreciation
Office equipment - at cost
Less: Accumulated depreciation
2018
$
2017
$
619,949
(358,995)
260,954
522,904
(232,781)
290,123
31,028
(31,028)
-
31,028
(29,950)
1,078
260,954
291,201
34
For personal use only
Note 13. Non-current assets—property, plant and equipment (continued)
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set
out below:
SciDev Ltd
Notes to the financial statements
30 June 2018
Balance at 1 July 2016
Additions
Disposals
Depreciation expense
Balance at 30 June 2017
Additions
Depreciation expense
Balance at 30 June 2018
Plant and
Office
equipment equipment
$
$
Total
$
225,872
190,764
(17,345)
(109,168)
290,123
97,045
(126,214)
2,673
-
-
(1,595)
228,545
190,764
(17,345)
(110,763)
1,078
-
(1,078)
291,201
97,045
(127,292)
260,954
-
260,954
Property, plant and equipment secured under finance leases
Refer to note 26 for further information on property, plant and equipment secured under finance leases.
Accounting policy for property, plant and equipment
Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes
expenditure that is directly attributable to the acquisition of the items.
Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and
equipment over their expected useful lives as follows:
Plant and equipment
Office equipment
4-7 years
2-8 years
The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting
date.
Plant and equipment under lease are depreciated over the unexpired period of the lease or the estimated useful life of
the assets, whichever is shorter.
An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit
to the Consolidated Entity. Gains and losses between the carrying amount and the disposal proceeds are taken to
profit or loss.
Note 14. Non-current assets—intangibles
Goodwill - at cost
Trade marks and intellectual property - at cost
Less: Accumulated amortisation
2018
$
2017
$
1,030,018 1,030,018
427,942
(191,927)
236,015
374,833
(125,048)
249,785
1,266,033 1,279,803
35
For personal use only
Note 14. Non-current assets—intangibles (continued)
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set
out below:
SciDev Ltd
Notes to the financial statements
30 June 2018
Balance at 1 July 2016
Additions
Amortisation expense
Balance at 30 June 2017
Additions
Amortisation expense
Balance at 30 June 2018
Trademarks
and
intellectual
property
$
Total
$
Goodwill
$
1,030,018
-
-
1,030,018
-
-
239,072 1,269,090
52,143
(41,430)
52,143
(41,430)
249,785 1,279,803
53,109
(66,879)
53,109
(66,879)
1,030,018
236,015 1,266,033
Impairment testing
Goodwill which was acquired through a business combination, has been allocated to the Science Development Pty Ltd
cash-generating unit (CGU). The recoverable amount of the Consolidated Entity's goodwill has been determined by a
value-in-use calculation using a discounted cash flow model, based on a 1-year projection period approved by
management and extrapolated for a further 4 years using variable rates, together with a terminal value.
Key assumptions are those to which the recoverable amount of an asset or cash-generating units is most sensitive.
Key assumptions in the discounted cashflow model include:
(a)
(b)
(c)
(d)
Post-tax discount rate of 15% (2017: 12.5%) per annum;
Average revenue growth over the five-year period of 46% (2017: 25%);
Average growth in gross margin over the five-year period of 39% (2017: 26%); and
Average per annum increase in operating expenses of 16% (2017: 5%).
The discount rate of 15% post-tax reflects management’s estimate of the time value of money and the Consolidated
Entity’s weighted average cost of capital, the risk-free rate and the volatility of the share price relative to market
movements.
Management believes the projected revenue growth rate is prudent and justified, based on management's
expectations of the company's business development pipeline.
The budgeted gross margin is based on past performance and management's expectations for the future.
Management has budgeted for operating costs based on the current structure of the business, adjusting for
inflationary increases but not reflecting any future restructurings or cost saving measures.
Sensitivity to change of assumptions
If the next year’s financial budget used in the value-in-use calculation had been 10% (2017: 10%) lower than
management’s estimates at 30 June 2018, the Consolidated Entity would have a recoverable amount in excess of $3.17
million (2017: $2.02 million) against the carrying amount of the cash generating unit to which the goodwill relates. If
the post-tax discount rate applied to the cash flow projections of this CGU had been 30% (2017: 20%) higher than
management’s estimates (20% instead of 15%) (2017: 15% instead of 12.5%), the Consolidated Entity would have a
recoverable amount in excess of $2.91 million (2017: $2.14 million) against the carrying amount of intangible assets
and property, plant and equipment.
36
For personal use only
SciDev Ltd
Notes to the financial statements
30 June 2018
Note 14. Non-current assets—intangibles (continued)
Accounting policy for intangible assets
Intangible assets acquired as part of a business combination, other than goodwill, are initially measured at their fair
value at the date of the acquisition. Intangible assets acquired separately are initially recognised at cost. Indefinite life
intangible assets are not amortised and are subsequently measured at cost less any impairment. Finite life intangible
assets are subsequently measured at cost less amortisation and any impairment. The gains or losses recognised in
profit or loss arising from the derecognition of intangible assets are measured as the difference between net disposal
proceeds and the carrying amount of the intangible asset. The method and useful lives of finite life intangible assets
are reviewed annually. Changes in the expected pattern of consumption or useful life are accounted for prospectively
by changing the amortisation method or period.
Goodwill
Goodwill arises on the acquisition of a business. 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 and is carried
at cost less accumulated impairment losses. Impairment losses on goodwill are taken to profit or loss and are not
subsequently reversed.
Trademarks and intellectual property
Significant costs associated with trademarks and intellectual property are deferred and amortised on a straight-line
basis over the period of their expected benefit, being their finite life of 10 years.
Note 15. Non-current assets—trade and other payables
Trade payables
BAS payable
Other payables
2018
$
2017
$
260,079
67,376
42,824
287,455
16,851
54,104
370,279
358,410
Refer to note 22 for further information on financial instruments.
Accounting policy for trade and other payables
These amounts represent liabilities for goods and services provided to the Consolidated Entity prior to the end of the
financial year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not
discounted. The amounts are unsecured and are usually paid within 30 days of recognition.
Note 16. Current liabilities—borrowings
Lease liability
Refer to note 22 for further information on financial instruments.
2018
$
2017
$
31,938
11,957
37
For personal use only
Note 17. Current liabilities—employee benefits
Annual leave
Long service leave
Accounting policy for employee benefits
SciDev Ltd
Notes to the financial statements
30 June 2018
2018
$
2017
$
40,534
126,713
67,659
95,706
167,247
163,365
Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be
settled wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the
liabilities are settled.
Defined contribution superannuation expense
Contributions to defined contribution superannuation plans are expensed in the period in which they are incurred.
Note 18. Non-current liabilities—borrowings
Lease liability
Refer to note 22 for further information on financial instruments.
The total secured liabilities (current and non-current) are as follows:
Lease liability
2018
$
2017
$
-
32,546
2018
$
2017
$
31,938
44,503
Assets pledged as security
The leases relate to a motor vehicle provided to the Managing Director. The motor vehicle lease liability is effectively
secured over the motor vehicle.
Accounting policy for borrowings
Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction costs.
They are subsequently measured at amortised cost using the effective interest method.
Note 19. Equity—Issued capital
Ordinary shares - fully paid
569,041,473 494,818,673 74,118,627 73,673,290
2018
Shares
2017
Shares
2018
$
2017
$
38
For personal use only
Note 19. Equity—Issued capital (continued)
Movements in ordinary share capital
Details
Date
Shares
Issue price
$
SciDev Ltd
Notes to the financial statements
30 June 2018
299,818,669
Balance
44,972,800
Share placement
50,000,004
Share purchase plan
80,027,200
Share placement
Acquisition of shares in Science Developments Pty Ltd 27 February 2017 20,000,000
-
Share issue transaction costs
12 January 2017
2 February 2017
19 December 2016
1 July 2016
71,641,977
539,674
600,000
960,326
240,000
(308,687)
$0.012
$0.012
$0.012
$0.012
$0.000
Balance
Share placement
Balance
30 June 2017
29 June 2018
494,818,673
74,222,800
73,673,290
445,337
$0.006
30 June 2018
569,041,473
74,118,627
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the company in
proportion to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value
and the company does not have a Ltd amount of authorised capital.
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.
Share placement
30 June 2017 - The company issued 44,972,800 and 80,027,200 ordinary shares on 19 December 2016 and 2 February
2017 respectively, in terms of a conditional placement to sophisticated and professional investors at an issue price of
1.2 cents per share.
30 June 2018 - The company issued 74,222,800 ordinary shares on 29 June 2018 in terms of a placement to
sophisticated and professional investors at an issue price of 0.6 cents per share.
Share purchase plan
30 June 2017 - On 12 January 2017 the company issued 50,000,004 ordinary shares under a Share Purchase Plan at an
issue price of 1.2 cents per share. The plan was fully subscribed.
Acquisition of Science Developments Pty Ltd
30 June 2017 - The company exercised its option to acquire the remaining 50% of Science Developments Pty Ltd. The
consideration paid for the exercise of the option amounted to $900,000 and was comprised of $660,000 in cash and
the issue of 20,000,000 ordinary shares at an issue price of 1.2 cents per share.
Capital risk management
The Consolidated Entity's objectives when managing capital is to safeguard its ability to continue as a going concern, so
that it can provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital
structure to reduce the cost of capital.
Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt is
calculated as total borrowings less cash and cash equivalents.
In order to maintain or adjust the capital structure, the Consolidated Entity may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
39
For personal use only
SciDev Ltd
Notes to the financial statements
30 June 2018
Note 19. Equity—Issued capital (continued)
In order to maintain or adjust the capital structure, the Consolidated Entity may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
The Consolidated Entity would look to raise capital when an opportunity to invest in a business or company was seen
as value adding relative to the current company's share price at the time of the investment. The Consolidated Entity is
not actively pursuing additional investments in the short term as it continues to integrate and grow its existing
businesses in order to maximise synergies.
There are no externally imposed capital requirements.
The capital risk management policy remains unchanged from the 2017 Annual Report.
The Consolidated Entity monitors capital on the basis of its working capital position (i.e. liquidity risk). The net working
capital of the Consolidated Entity at 30 June 2018 was $964,607 (2017: $972,592).
Accounting policy for issued capital
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of
tax, from the proceeds.
Note 20. Equity—Reserves
Share-based payments reserve
Transactions with non-controlling interests
2018
$
2017
$
2,855,902
(645,199)
2,814,422
(645,199)
2,210,703
2,169,223
Share-based payments reserve
The reserve is used to recognise the value of equity benefits provided to employees and directors as part of their
remuneration, and other parties as part of their compensation for services.
Transactions with non-controlling interests
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 book value of the share of the non-controlling interest
acquired is recognised directly in equity attributable to the parent.
40
For personal use only
Note 20. Equity—Reserves
Movements in reserves
Movements in each class of reserve during the current and previous financial year are set out below:
SciDev Ltd
Notes to the financial statements
30 June 2018
Share-based
payments
reserve
$
Transactions
with non-
controlling
interests
$
Total
$
Balance at 1 July 2016
Share-based payments
Acquisition of non-controlling interest in Science Developments Pty Ltd
2,653,594
160,828
-
-
-
(645,199)
2,653,594
160,828
(645,199)
Balance at 30 June 2017
Share-based payments
Balance at 30 June 2018
Note 21. Equity—Dividends
2,814,422
41,480
(645,199)
-
2,169,223
41,480
2,855,902
(645,199)
2,210,703
Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Franking credits
2018
$
2017
$
Franking credits available for subsequent financial years based on a tax rate of 30%
82,824
82,824
The above amounts represent the balance of the franking account as at the end of the financial year, adjusted for:
franking credits that will arise from the payment of the amount of the provision for income tax at the reporting
date
franking debits that will arise from the payment of dividends recognised as a liability at the reporting date
franking credits that will arise from the receipt of dividends recognised as receivables at the reporting date
Note 22. Financial instruments
Financial risk management objectives
The Consolidated Entity's activities expose it to a variety of financial risks: market risk (including foreign currency risk,
price risk and interest rate risk), credit risk and liquidity risk. The Consolidated Entity'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 Consolidated Entity. The Consolidated Entity does not enter into or trade financial
instruments, including derivative financial instruments, for speculative purposes.
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.
41
For personal use only
SciDev Ltd
Notes to the financial statements
30 June 2018
Note 22. Financial instruments (continued)
Financial risk management objectives
The Consolidated Entity's activities expose it to a variety of financial risks: market risk (including foreign currency risk,
price risk and interest rate risk), credit risk and liquidity risk. The Consolidated Entity'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 Consolidated Entity. The Consolidated Entity does not enter into or trade financial
instruments, including derivative financial instruments, for speculative purposes.
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.
Market risk
Foreign currency risk
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 Consolidated Entity 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
Consolidated Entity has not entered into any foreign currency hedging contracts during the year.
Price risk
The Consolidated Entity is not exposed to any significant price risk.
Interest rate risk
The Consolidated Entity's main interest rate risk arises from borrowings. Borrowings obtained at variable rates expose
the Consolidated Entity to interest rate risk. Borrowings obtained at fixed rates expose the Consolidated Entity to fair
value interest rate risk.
As at the reporting date, the Consolidated Entity had the following variable rate borrowings outstanding:
2018
2017
Weighted
average
interest rate
%
Balance
$
Weighted
average
interest rate
%
Balance
$
Leases
6.00%
31,938
6.00%
44,503
Net exposure to cash flow interest rate risk
31,938
44,503
An analysis by remaining contractual maturities in shown in 'liquidity and interest rate risk management' below.
An official increase/decrease in interest rates of 100 (2017: 100) basis points would have an adverse/favourable effect
on profit before tax of $319 (2017: $455) per annum. The percentage change is based on the expected volatility of
interest rates using market data and analysts’ forecasts.
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to
the Consolidated Entity. There is no significant concentration of credit risk to any single entity. The maximum exposure
to credit risk at the reporting date to recognised financial assets is the carrying amount, net of any provisions for
impairment of those assets, as disclosed in the statement of financial position and notes to the financial statements.
There is no trade debtor or other receivable amount where collateral has been received as security or pledged.
42
For personal use only
SciDev Ltd
Notes to the financial statements
30 June 2018
Note 22. Financial instruments (continued)
Liquidity risk
Vigilant liquidity risk management requires the Consolidated Entity to maintain sufficient liquid assets (mainly cash and
cash equivalents) and available borrowing facilities to be able to pay debts as and when they become due and payable.
The Consolidated Entity manages liquidity risk by maintaining adequate cash reserves and available borrowing facilities
by continuously monitoring actual and forecast cash flows and matching the maturity profiles of financial assets and
liabilities.
Remaining contractual maturities
The following tables detail the Consolidated Entity's remaining contractual maturity for its financial instrument
liabilities. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the
earliest date on which the financial liabilities are required to be paid. The tables include both interest and principal
cash flows disclosed as remaining contractual maturities and therefore these totals may differ from their carrying
amount in the statement of financial position.
- 2018
Non-interest bearing
Trade payables and other
payables
Interest-bearing - variable
Lease liability
Total non-derivatives
- 2017
Non-interest bearing
Trade payables and other
payables
Interest-bearing - variable
Lease liability
Total non-derivatives
Weighted
average
interest rate
%
1 year or
less
$
Between 1
and 2 years
$
Between 2
and 5 years
$
Over 5
years
$
Remaining
contractual
maturities
$
-
370,279
6.00%
34,911
405,190
-
-
-
-
-
-
-
370,279
-
-
34,911
405,190
Weighted
average
interest rate
%
1 year or
less
$
Between 1
and 2
years
$
Between 2
and 5
years
$
Over 5
years
$
Remaining
contractual
maturities
$
-
358,410
-
6.00%
16,329
374,739
34,911
34,911
-
-
-
-
358,410
-
-
51,240
409,650
The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually
disclosed above.
Fair value of financial instruments
Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value.
43
For personal use only
SciDev Ltd
Notes to the financial statements
30 June 2018
Note 23. Fair value measurement
Fair value hierarchy
The following tables detail the Consolidated Entity's assets and liabilities, measured or disclosed at fair value, using a
three-level hierarchy, based on the lowest level of input that is significant to the entire fair value measurement, being:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the
measurement date
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly or indirectly
Level 3: Unobservable inputs for the asset or liability
- 2018
Assets
Consideration from disposal of subsidiary
Equity securities
Equity securities - other
Total assets
- 2017
Assets
Equity securities - other
Total assets
Level 1
$
Level 2
$
Level 3
$
Total
$
-
804,000
696,000
-
-
2,900
- 1,502,900
Level 1
$
Level 2
$
Level 3
$
-
-
2,900
2,900
-
-
-
-
-
-
804,000
696,000
2,900
1,502,900
Total
$
2,900
2,900
There were no transfers between levels during the financial year.
Valuation techniques for fair value measurements categorised within level 2 and level 3
The consideration from disposal of subsidiary ($804,000) and the equity securities ($696,000) represent the non-cash
consideration received from the disposal of a subsidiary to an unlisted entity. The fair value of these financial assets
has been determined using the expected initial public offer (IPO) price the unlisted entity is expecting when it lists on
the Australian Securities Exchange (ASX).
Accounting policy for fair value measurement
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 principal 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 interests. 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 at each reporting date and
transfers between levels are determined based on a reassessment of the lowest level of input that is significant to the
fair value measurement.
44
For personal use only
SciDev Ltd
Notes to the financial statements
30 June 2018
Note 23. Fair value measurement (continued)
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.
Note 24. Key management personnel disclosures
Compensation
The aggregate compensation made to directors and other members of key management personnel of the Consolidated
Entity is set out below:
Accounting policy for fair value measurement
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 principal market; or in the absence of a principal market, in the most advantageous market.
Short-term employee benefits
Post-employment benefits
Long-term benefits
Note 25. Remuneration of auditors
2018
$
2017
$
458,044
38,699
31,007
358,572
31,297
9,137
527,750
399,006
During the financial year the following fees were paid or payable for services provided by Rothsay Chartered
Accountants, the auditor of the company
Audit services - Rothsay Chartered Accountants
Audit or review of the financial statements
Other services - Rothsay Chartered Accountants
Tax compliance services
2018
$
2017
$
49,050
31,300
4,000
5,500
53,050
36,800
45
For personal use only
Note 25. Commitments
Lease commitments - operating
Committed at the reporting date but not recognised as liabilities, payable:
Within one year
Lease commitments - finance
Committed at the reporting date and recognised as liabilities, payable:
Within one year
One to five years
Total commitment
Less: Future finance charges
Net commitment recognised as liabilities
Representing:
Lease liability - current (note 16)
Lease liability - non-current (note 18)
SciDev Ltd
Notes to the financial statements
30 June 2018
2018
$
2017
$
53,750
61,750
34,911
-
16,329
34,911
34,911
(2,973)
51,240
(6,737)
31,938
44,503
31,938
-
11,957
32,546
31,938
44,503
Operating lease commitments includes contracted amounts for various warehouses, offices and plant and equipment
under non-cancellable operating leases expiring within 1 year with, in some cases, options to extend. The leases have
various escalation clauses. On renewal, the terms of the leases are renegotiated.
Note 27. Related party transactions
Parent entity
SciDev Ltd is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in note 30.
Key management personnel
Disclosures relating to key management personnel are set out in note 24 and the remuneration report included in the
directors' report.
Transactions with related parties
Details of transactions between the Consolidated Entity and related parties are disclosed below:
Receivable from and payable to related parties
2018
$
2017
$
Other transactions:
Subscription for new ordinary shares by key management personnel as result of the share
placement and share purchase plan
-
89,744
There were no trade receivables from or trade payables to related parties at the current and previous reporting date.
46
For personal use only
Note 27. Related party transactions (continued)
Loans to/from related parties
Balances and transactions between the company and its subsidiaries, which are related parties of the company, have
been eliminated on consolidation and are not disclosed in this note.
SciDev Ltd
Notes to the financial statements
30 June 2018
Note 28. Parent entity information
Profit/(loss) after income tax
Other comprehensive income for the year, net of tax
Total comprehensive income
Statement of financial position
Total current assets
Total non-current assets
Total assets
Total current liabilities
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Share-based payments reserve
Accumulated losses
Total equity
2018
$
2017
$
776,764
(759,995)
-
-
776,764
(759,995)
Parent
2018
$
2017
$
634,979
781,510
4,027,795
2,631,209
4,662,774
3,412,719
277,963
258,941
-
32,546
277,963
291,487
4,384,811
3,121,232
74,425,145
2,763,894
73,979,808
2,722,414
(72,804,228) (73,580,990)
4,384,811
3,121,232
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
The parent entity had no guarantees in relation to the debts of its subsidiaries as at 30 June 2018 and 30 June 2017.
Contingent liabilities
The parent entity had no contingent liabilities as at 30 June 2018 and 30 June 2017.
47
For personal use only
SciDev Ltd
Notes to the financial statements
30 June 2018
Note 28. Parent entity information (continued)
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2018 and 30 June 2017.
Significant accounting policies
The accounting policies of the parent entity are consistent with those of the Consolidated Entity, as disclosed in note 2,
except for the following:
Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity.
Dividends received from subsidiaries are recognised as other income by the parent entity and its receipt may be
an indicator of an impairment of the investment.
Note 29. Business combinations
2017
On 27 February 2017 the company acquired the remaining 50% of the ordinary shares of Science Developments Pty
Ltd. With the 50% acquisition the Consolidated Entity holds a 100% interest in Science Developments Pty Ltd. The total
consideration paid amounted to $900,000 and was comprised of $660,000 in cash and the issue of 20 million fully paid
ordinary shares at a deemed issue price of 12 cents per share amounting to $240,000. The values identified in relation
to the acquisition of Science Development Pty Ltd are final as at 30 June 2017.
By acquiring 100% ownership of Science Developments Pty Ltd, the Consolidated Entity aims to further enhance the
efficiency of operation, expand synergy, strengthen the consolidated profitability, and improve the consolidated
enterprise value.
Cash and cash equivalents
Trade receivables
Inventories
Property, plant and equipment
Trademarks
Trade and other payables
Deferred tax liability
Net assets acquired
Goodwill
Acquisition-date fair value of the total consideration transferred
Representing:
Cash paid or payable to vendor
SciDev Ltd shares issued to vendor
Cash used to acquire business, net of cash acquired:
Acquisition-date fair value of the total consideration transferred
Less: cash and cash equivalents
Net cash used
Fair value
$
18,185
137,691
224,201
106,028
113,954
(205,196)
(63,006)
331,857
568,143
900,000
660,000
240,000
900,000
660,000
(36,369)
623,631
48
For personal use only
SciDev Ltd
Notes to the financial statements
30 June 2018
Note 29. Business combinations (continued)
Accounting policy for business combinations
The acquisition method of accounting is used to account for business combinations regardless of whether equity
instruments or other assets are acquired.
The consideration transferred is the sum of the acquisition-date fair values of the assets transferred, equity
instruments issued or liabilities incurred by the acquirer to former owners of the acquiree and the amount of any non-
controlling interest in the acquiree. For each business combination, the non-controlling interest in the acquiree is
measured at either fair value or at the proportionate share of the acquiree's identifiable net assets. All acquisition
costs are expensed as incurred to profit or loss.
On the acquisition of a business, the Consolidated Entity assesses the financial assets acquired and liabilities assumed
for appropriate classification and designation in accordance with the contractual terms, economic conditions, the
Consolidated Entity's operating or accounting policies and other pertinent conditions in existence at the acquisition-
date.
Where the business combination is achieved in stages, the Consolidated Entity remeasures its previously held equity
interest in the acquiree at the acquisition-date fair value and the difference between the fair value and the previous
carrying amount is recognised in profit or loss.
Contingent consideration to be transferred by the acquirer is recognised at the acquisition-date fair value. Subsequent
changes in the fair value of the contingent consideration classified as an asset or liability is recognised in profit or loss.
Contingent consideration classified as equity is not remeasured and its subsequent settlement is accounted for within
equity.
The difference between the acquisition-date fair value of assets acquired, liabilities assumed and any non-controlling
interest in the acquiree and the fair value of the consideration transferred and the fair value of any pre-existing
investment in the acquiree is recognised as goodwill. If the consideration transferred and the pre-existing fair value is
less than the fair value of the identifiable net assets acquired, being a bargain purchase to the acquirer, the difference
is recognised as a gain directly in profit or loss by the acquirer on the acquisition-date, but only after a reassessment of
the identification and measurement of the net assets acquired, the non-controlling interest in the acquiree, if any, the
consideration transferred and the acquirer's previously held equity interest in the acquirer.
Business combinations are initially accounted for on a provisional basis. The acquirer retrospectively adjusts the
provisional amounts recognised and also recognises additional assets or liabilities during the measurement period,
based on new information obtained about the facts and circumstances that existed at the acquisition-date. The
measurement period ends on either the earlier of (i) 12 months from the date of the acquisition or (ii) when the
acquirer receives all the information possible to determine fair value.
Note 30. Interest in subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in
accordance with the accounting policy described in note 2:
Name
Principal place of business /
Country of incorporation
Intec Copper Pty Ltd
Intec Envirometals Pty Ltd
Science Developments Pty Ltd
Intec Zeehan Residues Pty Ltd*
Australia
Australia
Australia
Australia
Owners interest
2018
%
2017
%
100.00%
100.00%
100.00%
-
100.00%
100.00%
100.00%
100.00%
*
Intec Zeehan Residues Pty Ltd was a subsidiary of Intec Envirometals Pty Ltd. Intec Zeehan Residues Pty Ltd was sold during the 2018
financial year (refer note 12).
49
For personal use only
SciDev Ltd
Notes to the financial statements
30 June 2018
Note 30. Interest in subsidiaries (continued)
Transactions with non-controlling interests
2017
On 27 February 2017 the Consolidated Entity acquired the remaining 50% of the ordinary shares of Science
Developments Pty Ltd. With the 50% acquisition the Consolidated Entity now holds a 100% interest in Science
Developments Pty Ltd. The total consideration paid amounted to $900,000 and was comprised of $660,000 in cash and
the issue of 20 million fully paid ordinary shares at a deemed issue price of 12 cents per share amounting to $240,000.
Immediately prior to the purchase, the carrying amount of the existing 50% non-controlling interest in Science
Developments Pty Ltd was $254,801. The Consolidated Entity recognised a decrease in non-controlling interests of
$254,801 and a decrease in equity attributable to owners of the parent of $645,199. The effect on the equity
attributable to the owners of SciDev Ltd during the year is summarised as follows:
Carrying amount of non-controlling interests acquired
Consideration paid to non-controlling interests
Excess of consideration paid recognised in the transactions with non-controlling
interests reserve within equity
Note 31. Events after the reporting period
2018
$
2017
$
-
-
254,801
(900,000)
-
(645,199)
On 9 July 2018, the company received a further payment of $50,000 from Tartana Resources Ltd (Tartana) in relation
to the sale to Tartana of Intec Zeehan Residues Pty Ltd. The remaining payment from Tartana of $210,000, including
accrued interest, is due by 30 September 2018.
On 10 August 2018, the company completed Tranche 2 of the share placement previously announced on 25 June 2018.
Tranche 2 comprised the placement of 69,110,534 shares at an issue price of 0.6 cents per share to raise $414,663
before costs. An Extraordinary General Meeting of the company was held on 2 August 2018 to approve matters
relating to both Tranches of the share placement announced on 25 June 2018.
After year-end a further 800,000 Tartana shares have been issued to SciDev. The balance of the Tartana shares to be
issued to SciDev, totalling 7,240,000 shares, will be issued in a tranched manner over the coming months.
On 16 July 2018, the company announced that it had received a purchase order from Peabody Energy for a six-month
commercial trial of an OptiFlox System at the North Goonyella coking mine in Queensland.
No other matter or circumstance has arisen since 30 June 2018 that has significantly affected, or may significantly
affect the Consolidated Entity's operations, the results of those operations, or the Consolidated Entity's state of affairs
in future financial years.
50
For personal use only
SciDev Ltd
Notes to the financial statements
30 June 2018
Note 32. Reconciliation of profit/(loss) after income tax to net cash used in operating activities
Profit/(loss) after income tax benefit/(expense) for the year
1,001,869
(597,340)
2018
$
2017
$
Adjustments for:
Depreciation and amortisation
Net loss/(gain) on disposal of non-current assets
Share-based payments
Interest - non-cash
Change in operating assets and liabilities:
Increase in trade and other receivables
Decrease/(increase) in inventories
Decrease in income tax refund due
Decrease in prepayments
Increase in trade and other payables
Decrease in deferred tax liabilities
Increase in employee benefits
Net cash used in operating activities
194,171
(1,989,200)
41,480
(6,250)
152,193
17,345
-
-
(137,679)
(4,345)
-
-
11,869
(8,142)
3,882
(118,493)
46,201
11,253
2
253,274
(13,632)
23,899
(892,345)
(225,298)
Note 33. Changes in liabilities arising from financing activities
Trade finance
facility
$
Lease
liability
$
Loans from
related
parties
$
Total
$
Balance at 1 July 2016
Net cash used in financing activities
196,535
(196,535)
111,279
(66,776)
100,000
(100,000)
407,814
(363,311)
Balance at 30 June 2017
Net cash used in financing activities
Balance at 30 June 2018
-
-
-
44,503
(12,565)
31,938
-
-
-
44,503
(12,565)
31,938
51
For personal use only
Note 34. Earnings per share
Profit/(loss) after income tax
Non-controlling interest
SciDev Ltd
Notes to the financial statements
30 June 2018
2018
$
2017
$
1,001,869
-
(597,340)
(84,811)
Profit/(loss) after income tax attributable to the owners of SciDev Ltd
1,001,869
(682,151)
Weighted average number of ordinary shares used in calculating basic earnings per
share
495,225,373 299,818,669
Weighted average number of ordinary shares used in calculating diluted earnings per
share
495,225,373 299,818,669
Number
Number
Basic earnings per share
Diluted earnings per share
Cents
Cents
0.20
0.20
(0.23)
(0.23)
Options are considered to be potential ordinary shares but were anti-dilutive in nature and therefore the diluted loss
per share is the same as the basic loss per share. These options could potentially dilute basic earnings per share in the
future.
Share transactions after the end of the reporting period
The company issued 52,443,867 ordinary shares to sophisticated investors and 16,666,667 ordinary shares to the
company's Managing Director on 10 August 2018 and 11 August 2018 respectively. These share transactions would
have changed significantly the number of ordinary shares outstanding at 30 June 2018 if these transactions had
occurred before the end of the reporting period.
Accounting policy for earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of SciDev Ltd, 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 financial year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into
account the after-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.
Note 35. Share-based payments
Employee Share Scheme
Share based compensation benefits are provided to employees via the SciDev Employee Share Scheme.
At the 2014 Annual General Meeting, shareholders approved the SciDev 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.
52
For personal use only
SciDev Ltd
Notes to the financial statements
30 June 2018
Note 35. Share-based payments (continued)
The fair value of options granted under the SciDev 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.
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.
There were no options granted under the scheme during the 2017 financial year.
On 14 August 2017, the company issued 6.5 million unquoted options to executives and staff (not Directors). The
options have an exercise price of $0.025, vested on grant date and expire on 28 November 2019. The value of the
options granted was $30,568.
Other share-based payments
On 2 February 2017 the company granted 22,500,000 options to the Lead Manager and Underwriter for services
rendered in connection with the placement of shares and the share purchase plan. The options have an exercise price
of $0.025, vested on grant date and expire on 28 November 2019. The value of the options granted was $160,828.
On 28 December 2017, the company issued 5 million unquoted options to a key service provider (non-Director) for
services rendered. The options have an exercise price of $0.025, vested on grant date and expire on 28 November
2019. The value of the options granted was $10,912.
2018
Grant date
Expiry date
10/12/2014
02/02/2017
14/08/2017
28/12/2017
28/11/2019
28/11/2019
28/11/2019
28/11/2019
Exercise
price
Balance
the start of
the year
Granted
Expired /
Forfeited /
other
Balance at
the end of
the year
Exercised
-
$0.025
5,500,000
-
$0.025 22,500,000
6,500,000
-
$0.025
5,000,000
-
$0.025
28,000,000 11,500,000
-
-
-
-
-
-
5,500,000
- 22,500,000
6,500,000
-
5,000,000
-
- 39,500,000
Weighted average exercise price
$0.025
$0.025
$0.000
$0.000
$0.025
2017
Grant date
Expiry date
09/12/2011
10/12/2014
02/02/2017
21/11/2016
28/11/2019
28/11/2019
Exercise
price
Balance at
the start of
the year
Granted
Expired/
forfeited/
other
Balance at
the end of
the year
Exercised
$0.030
$0.025
$0.025
3,300,000
5,500,000
-
-
- 22,500,000
8,800,000 22,500,000
- (3,300,000)
-
-
-
5,500,000
-
- 22,500,000
- (3,300,000) 28,000,000
Weighted average exercise price
$0.027
$0.025
$0.000
$0.030
$0.025
53
For personal use only
Note 35. Share-based payments (continued)
Set out below are the options exercisable at the end of the financial year:
Grant date
Expiry date
10/12/2014
02/02/2017
14/08/2017
28/12/2017
28/11/2019
28/11/2019
28/11/2019
28/11/2019
SciDev Ltd
Notes to the financial statements
30 June 2018
2018
Number
2017
Number
5,500,000
22,500,000
6,500,000
5,000,000
5,500,000
22,500,000
-
-
39,500,000
28,000,000
The weighted average remaining contractual life of options outstanding at the end of the financial year was 1.41 years
(2017: 2.41 years).
The fair value of options granted was measured using the Black-Scholes option pricing model.
For the options granted during the current financial year, the valuation model inputs used to determine the fair value
at the grant date, are as follows:
Grant date
Expiry date
Share price
at grant date
Exercise
price
Expected
volatility
Dividend
yield
Risk-free
Fair value
interest rate at grant date
14/08/2017
28/12/2017
28/11/2019
28/11/2019
$0.016
$0.012
$0.025
$0.025
70.00%
70.00%
-
-
2.85%
2.85%
$0.00470
$0.00218
Accounting policy for share-based payments
Equity-settled and cash-settled share-based compensation benefits are provided to employees.
Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in exchange
for the rendering of services. Cash-settled transactions are awards of cash for the exchange of services, where the
amount of cash is determined by reference to the share price.
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently
determined using either the Binomial or Black-Scholes option pricing model that takes into account the exercise price,
the term of the option, the impact of dilution, the share price at grant date and expected price volatility of the
underlying share, the expected dividend yield and the risk free interest rate for the term of the option, together with
non-vesting conditions that do not determine whether the Consolidated Entity receives the services that entitle the
employees to receive payment. No account is taken of any other vesting conditions.
The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity over the
vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the
best estimate of the number of awards that are likely to vest and the expired portion of the vesting period. The
amount recognised in profit or loss for the period is the cumulative amount calculated at each reporting date less
amounts already recognised in previous periods.
The cost of cash-settled transactions is initially, and at each reporting date until vested, determined by applying either
the Binomial or Black-Scholes option pricing model, taking into consideration the terms and conditions on which the
award was granted. The cumulative charge to profit or loss until settlement of the liability is calculated as follows:
during the vesting period, the liability at each reporting date is the fair value of the award at that date multiplied
by the expired portion of the vesting period.
from the end of the vesting period until settlement of the award, the liability is the full fair value of the liability
at the reporting date.
54
For personal use only
SciDev Ltd
Notes to the financial statements
30 June 2018
Note 35. Share-based payments (continued)
All changes in the liability are recognised in profit or loss. The ultimate cost of cash-settled transactions is the cash paid
to settle the liability.
Market conditions are taken into consideration in determining fair value. Therefore, any awards subject to market
conditions are considered to vest irrespective of whether or not that market condition has been met, provided all
other conditions are satisfied.
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been
made. An additional expense is recognised, over the remaining vesting period, for any modification that increases the
total fair value of the share-based compensation benefit as at the date of modification.
55
For personal use only
SciDev Ltd
Director’s declaration
30 June 2018
Director’s declaration
In the directors' opinion:
the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards,
the Corporations Regulations 2001 and other mandatory professional reporting requirements;
the attached financial statements and notes comply with International Financial Reporting Standards as issued
by the International Accounting Standards Board as described in note 2 to the financial statements;
the attached financial statements and notes give a true and fair view of the Consolidated Entity's financial
position as at 30 June 2018 and of its performance for the financial year ended on that date; and
there are reasonable grounds to believe that the company will be able to pay its debts as and when they
become due and payable.
The directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
On behalf of the directors
Kieran G Rodgers
Managing Director
26 October 2018
Sydney
56
For personal use only
SCIDEV LIMITED
INDEPENDENT AUDITOR’S REPORT
To the members of SciDev Limited
Opinion
We have audited the financial report of SciDev Limited (“SciDev”) and its controlled entities (the “Group”),
which comprises the consolidated statement of financial position as at 30 June 2018, the consolidated
statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity
and the consolidated statement of cash flows for the year then ended, and notes to the financial statements,
including a summary of significant accounting policies, and the directors' declaration.
In our opinion the financial report of the Group is in accordance with the Corporations Act 2001, including:
(a) giving a true and fair view of the Group’s financial position as at 30 June 2018 and of its performance
for the year ended on that date; and
(b) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described as in the Auditor's Responsibilities for the Audit of the Financial Report
section of our report. We are independent of the Group in accordance with the auditor independence
requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and
Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants (“the Code”) that are relevant
to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in
accordance with the Code.
In conducting our audit, we have complied with the independence requirements of the Corporations Act
2001.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Material Uncertainty Related to Going Concern
We draw attention to Note 1 in the financial report, which indicates that the Company incurred a loss of
$987,331 during the year ended 30 June 2018 before taking into account the net gain from the sale of Intec
Zeehan Residues Pty Ltd. Net cash outflows from operations were $892,345 for the year ended 30 June 2018.
As stated in Note 1, these events or conditions, along with other matters as set forth in Note 1, indicate that
a material uncertainty exists that may cast significant doubt on the Company’s ability to continue as a going
concern. Our opinion is not modified in respect of this matter.
50
For personal use only
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance
in our audit of the financial report of the current period. These matters were addressed in the
context of our audit of the financial report as a whole, and in forming our opinion thereon, and we
do not provide a separate opinion on these matters.
Key Audit Matter
How our Audit Addressed the Key Audit Matter
Impairment of Goodwill
The impairment assessment
made by management over
the Company’s goodwill
balance is a key audit matter
as it incorporates significant
judgments in respect of
factors such as forecast cash
flows, growth rates and
discount rates as well as
economic assumptions such as
inflation.
Sale to Tartana Resources
Ltd of Intec Zeehan Residues
Pty Ltd
The sale of Intec Zeehan
Residues Pty Ltd to Tartana
Resources Limited (Tartana) is
a key audit matter due to the
quantum of the transaction,
the impact on the group’s net
asset position and the impact
on the group should the
transaction not be finalised.
Our procedures included:
Assessing management’s determination of the Group’s CGUs based on
our understanding of the group. We also compared this to the internal
reporting of the group to assess how revenue is reported.
Evaluating management’s cash flow forecast along with the
assumptions and methodologies used. We also took into consideration
the results of the current year actual results to the prior forecasts to
assess management’s ability to accurately forecast results.
Evaluating the assessment performed by management to ensure the
methodology appeared reasonable and the assumptions noted in the
forecasts were accurately reflected.
Reviewing the discounting applied to determine if it was reasonable in
the current market and reflective of the rate of interest the Group
would be able to obtain finance if required.
Verifying the calculations for mathematical accuracy and considered
the sensitivity of the calculation by varying the assumptions and
applying other values within a reasonable range.
Our procedures included:
Reviewing the terms of the Share Sale Agreement to ensure the
transaction had been recorded and disclosed in accordance with the
terms of the agreement.
Understanding the status of the transaction and where milestones have
not been met, clarifying with management why and what impact it has
on the transaction being finalised.
Ensuring the elements of the transaction are correctly accounted for
from both a sale and an acquisition perspective.
Agreed the consideration received from the sale to the agreement and
where already received, to bank records.
Assessed the investment for impairment.
Responsibility of Directors for the Financial Report
The directors of the Group 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.
51
For personal use only
In preparing the financial report, the directors are responsible for assessing the Group’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless the directors either intend to liquidate the Group or to
cease operations, or have no realistic alternative but to do so.
Auditor’s Responsibility for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with Australian Auditing Standards will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of the financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgement and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial report, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk
of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Group’s ability
to continue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the related disclosures in the financial
report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor’s report. However,
future events or conditions may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial report, including
the disclosures, and whether the financial report represents the underlying transactions
and events in a manner that achieves fair presentation.
We communicate with the directors regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable,
related safeguards.
52
For personal use only
From the matters communicated with the directors, we determine those matters that were of most
significance in the audit of the financial report of the current period and are therefore the key
audit matters. We describe these matters in our auditor’s report unless law or regulation precludes
public disclosure about the matter or when, in extremely rare circumstances, we determine that a
matter should not be communicated in our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest benefits of such communication.
Report on the Remuneration Report
We have audited the Remuneration Report included in pages 7 to 10 of the Directors’ Report for the
year ended 30 June 2018. 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 on the Remuneration Report
In our opinion, the Remuneration Report of SciDev Limited, for the year ended 30 June 2018,
complies with section 300A of the Corporations Act 2001.
Rothsay Chartered Accountants
Frank Vrachas
Partner
Sydney, 27 September 2018
53
For personal use only
Shareholder Information
The shareholder information set out below was applicable as at 21 October 2018.
A.
Distribution of equity securities
Analysis of numbers of equity security holders by size of holding:
B.
Substantial holders
Class of equity security
Ordinary shares
1,001
5,001
10,001
100,001 and over
1,000
5,000
10,000
100,000
Number of shareholders
168
140
72
290
356
1,026
Number of shares
48,209
393,927
562,651
15,690,446
621,456,774
638,152,007
Substantial shareholders as at 21 October 2018 are listed below:
Wattcon Consulting Pty Ltd
Kieran Gregory Rodgers & Patricia Maree Rodgers
Lewis Edward Utting & Helena Lehos
10.72%
6.30%
5.76%
Equity security holders
The names of the twenty largest holders of quoted equity securities as at 21 October 2018 are listed below:
Name
Kanins Australia Pty Ltd
Kieran Gregory Rodgers & Patricia Maree Rodgers
Lewis Edward Utting & Helena Lehos
PW Pembroke Pty Ltd
Alan Conigrave
Natjad and Associates Pty Ltd
Kathleen Watt
Martin Edward Meyer
Longwin Capital Finance Ltd
Makram Hanna & Rita Hanna
Susan Maree Whiting
GP Securities Pty Ltd
Geoffrey Ross Hiller & Jacqueline Ann Hiller
The Stephens Group Pty Ltd
Praneeta Priya Murti
JP Morgan Nominees Australia Limited
Brian Harry Rivers
Donald Alexander Bell & Lexie Ann Bell
Puntero Pty Ltd
Stuart Andrew Spiteri
Total of Top 20 Shareholdings
Other Shareholders
Total Ordinary Shares on Issue
Ordinary shares
Number held
Percentage of
issued shares
50,000,000
40,183,245
36,780,000
20,000,000
17,000,000
16,666,667
18,416,667
14,666,667
14,666,667
13,713,263
10,000,000
9,000,000
8,950,000
8,250,000
7,775,000
7,251,590
7,000,000
7,000,000
7,000,000
6,660,000
321,419,766
316,732,241
638,152,007
7.84
6.30
5.76
3.13
2.74
2.61
2.89
2.30
2.30
2.15
1.57
1.41
1.40
1.29
1.22
1.14
1.10
1.10
1.10
1.03
50.37
49.63
100.000
61
For personal use only
Shareholder Information
C.
Voting rights
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.
D.
Summary of options issued
Options expiring 28 November 2019 with an exercise price of $0.025
Option holders with more than 20% of above class
39,500,000
10
Taycol Nominees Pty Ltd
22,500,000
59.96%
No. of
Options
No. of
Holders
% Options
Issued
62
For personal use only
CORPORATE
DIRECTORY
Directors
Chairman
Trevor A Jones
Managing Director
Kieran G Rodgers
Non-executive Director
Daniel J Cronin
Company Secretary
Heath L Roberts
Annual General Meeting
The Annual general Meeting of
SciDev Ltd will be held as follows:
The Boardroom Northside
Conference Centre
Corner of Oxley Street and Pole Lane
Crows Nest NSW 2065
11.00am on
Thursday 29th November 2018
Registered Office
Suite 105, 45 Atchison Street
St Leonards NSW 2065 Australia
Telephone: (+61) 0438 675 510
Email: mail@scidev.com.au
Website: www.scidev.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
Auditors
Rothsay Chartered Accountants Sydney
Level 1, 12 O’Connell Street
Sydney NSW 2000 Australia
Patent Attorneys
Griffith Hack 100 Miller Street
North Sydney NSW 2060 Australia
Stock Exchange Listing
SciDev Ltd shares are listed or traded on
the Australian Stock Exchange (Code: SDV).
Corporate Governance Statement
www.scidev.com.au/corporate-goverance
63
For personal use only
CONTACT
Managing director – Kieran Rodgers
+61 438 675 510
Suite 105, 48 Atchison street
St leonards nsw 2065 Australia
www.scidev.com.au
64
For personal use only