TIDMSEE
RNS Number : 3318Q
Seeing Machines Limited
11 September 2017
Seeing Machines Limited
("Seeing Machines" or the "Company")
2017 Financial Results and Directors Report
11 September 2017
Seeing Machines (AIM: SEE), an industry leader in computer
vision based technologies which enable machines to see, understand
and assist people, is pleased to announce its audited financial
results for the year to 30 June 2017 and the publication of its
2017 Directors Report.
The Report is available for download from the Company's website:
www.seeingmachines.com/investors.
Key Points:
Financial
-- Company revenue was up 122% to $A13.6m versus A$6.1m in FY16
on like-for-like basis, though reported revenue was down 60% due
mainly to the one-off CAT license fee in FY16.
-- Second half sales were more than 250% that of first half
sales, with the key growth driver being Fleet revenue.
-- Fleet business revenue achieved was A$9.1m for the year, almost triple the A$3.3m in FY16.
-- Automotive business, whilst in its early stages, still saw
revenue increase by 49%, from A$1.1m in FY16 to A$1.6m in FY17.
-- Caterpillar agreed to pay US$7m earlier than per original
agreement timing in return for product development consulting
project.
-- Indirect operating expenses rose from A$32.5m in FY16 to
A$37.1m in FY17 due to increased investment in capability and
resources to commercialize the Company's technology for core
industry targets.
-- Net loss before tax from continuing operations in FY17
increased to A$28.5m from A$1.6m for FY16 as a result of the
increased investment described above and the one-off $21.8m license
fee from Caterpillar booked in FY16.
-- Cash reserves at 30 June 2017 were A$22m compared to A$16.9m at 30 June 2016.
Operational
-- After a strategic review, Seeing Machines implemented a new
integrated strategy retaining the Automotive business within the
Company to leverage a common platform strategy, cross-funding and
growing synergies across the five key transport industry
pillars.
-- The Company advanced this multi-pillar Transport strategy
with strong progress across the board in Automotive, Fleet,
Off-Road (Mining), Rail and Aviation.
-- In FY17, Automotive completed production release of its first
Automotive DMS solution for the world's first 'hands-free'
semi-autonomous car from a leading US OEM which is to launch this
year.
-- Having converted the original Takata corporation partnership
agreement to non-exclusive, the Company has expanded its ecosystem
of leading Automotive Tier 1 collaborations to best pursue OEM
business opportunities such as the recently announced collaboration
with Autoliv, a leader in Automotive Safety Systems.
-- The Company marked a major milestone in internal sampling of
its first FOVIO DMS processor, which as well as Automotive, is
planned to form basis of a common platform strategy for multiple
markets going forward. The processor is now in further test,
development and automotive qualification for sampling and design-in
to advance customers in FY18 and beyond.
-- Fleet (Guardian) sales were a key driver for the overall
revenue result with more than 250% sales than that of the previous
year.
-- There are now 130 Guardian customers globally, with growth
achieved through direct sales and through strong performance from
new distribution partners such as Kiattana in Thailand.
-- MiX Telematics and Seeing Machines announced in December 2016
that they had engaged in a global distribution partnership and are
now actively marketing an integrated solution across the MiX
worldwide customer base, which was over 600,000 trucks at close of
FY17.
-- In August 2017 Geotab, a worldwide leader in fleet telematics
solutions, added the Company's Guardian System to the Geotab
Marketplace.
-- In Aviation, the Company has established a clear pathway to
market in three key sectors - Simulators, Aircraft and Consoles.
Seeing Machines is now moving beyond Proof Of Concept (POC) trials
to formal engagements with global leading aircraft OEMS, Carriers
and Simulator companies for pilot and crew training and fatigue
risk management solutions and also has also strong development
activities with world leading Air Traffic Control operators. These
activities are expected to deliver the first meaningful revenue
contribution year for the emerging Aviation business in FY18.
-- After successful trials in the last two years, Seeing
Machines has now signed a new extended Partnership Agreement with
Progress Rail Services Corporation (Progress Rail) which represents
graduation to the global commercial roll-out phase. The five-year
Agreement provides exclusive world-wide licence rights to Progress
Rail, for core rail applications with certain exclusion conditions,
on a royalty basis incorporating certain minimum royalty revenue
growth commitments.
-- Seeing Machines, in conjunction with Monash University's
Accident Research Centre and Ron Finemore Transport and a leading
global Truck OEM, was awarded an Australian Government CRC-Project
Grant for A$2.25m over three years to work on an "Advanced Safe
Truck Concept" ASTC project that builds on the Company's Guardian
technology platform. This will advance the Company's goal to
deliver the next generation of truck driver monitoring technology
for the global commercial transport sector.
-- The Company was also awarded a research program (CAN-DRIVE),
which is believed to be world's first automated vehicle trial with
a primary focus on driver behavior and optimum human machine
interfaces (HMI) for semi-autonomous driving. The Australian
Capital Territory Government has committed A$1.35m to the trial,
which will use Seeing Machines driver monitoring technology
installed in semi-autonomous vehicles to test and optimize the HMI
for all use cases.
Outlook
-- Revenue is expected to grow in-line with market expectations
for FY18, driven by strong momentum in Fleet, a growing Automotive
and Off-Road contribution and first meaningful revenues from
Aviation and Rail segments. Whilst there remain uncertainties
around the timing ramp of any new markets including some of those
the company is supplying, the Company targets growing annual
revenue to the sub A$100 million region by the end of FY19.
-- The Company expects to deliver gross profit margins in the
low to mid thirty percent range for FY18, with additional gross
margin expansion of +5% to +10% per year for the next several years
as the Company's business scales - to a long term gross margin
model of 60% to 70%+ which is consistent with SaaS and
high-performance processor/IP business models.
-- Given the Company's strategy to seize its first mover
advantage and scale major Fleet and Automotive businesses to market
leading positions - through continued investment in its Advanced
Platform Technology, Product Roadmap, Machine Learning
Infrastructure and a global support infrastructure for its
expanding customer base, the Company expects to potentially invest
up to A$50 million over the next two years to accelerate platform
and product development and build an infrastructure capacity to
support the sharp ramp in global customer programs. The Company
projects to achieve EBITDA breakeven by the end of FY19 with an
attractive EBITDA & Free Cash Flow margin profile accelerating
from that point on as the ensuing gross profit expansion
increasingly flows to the bottom line.
-- Given the strong growth and traction the Company is
delivering in the fast-growing markets it is participating in, the
Company remains committed to continued investment in its products
and business development while being mindful of its balance sheet
position. As such the Company is engaged in exploratory discussions
with a number of potential strategic partners with regards to
various potential partnerships and possible strategic investment in
the business while also discussing its investment plans and
financing requirements with its major shareholders, potential
financial investors and other capital sources in due course.
[1] Excluding one-off license fee to CAT and adjusting FY16 DSS
sales as if a royalty was earned on the gross sale instead.
Ken Kroeger, Executive Chairman commented: "The tremendous
success in the Fleet business clearly demonstrates that the Company
has established its departure from concentration on low volume,
high value mining business to a multi-pillar approach covering the
major global transport sectors. Leveraging partners like MiX
Telematics and Geotab, as well as our regional distributors will
continue to accelerate growth and build the market opportunities
for Fleet around the world. While the Automotive business by nature
requires long development times, we are hugely encouraged by our
close engagements with a rapidly expanding roster of global OEMs
and expanding Tier1 ecosystem to support their programs. This year
also represented a passing of the leadership baton to Mike as CEO
and I look forward now as Chairman, to supporting him and the team
as they execute on the major opportunities ahead."
Mike McAuliffe, Chief Executive Officer commented: "The big
strides we have made this year gives us increasing confidence in
our business prospects for our core transport markets. We have the
right technology in the right place and at the right time. It has
been a break-through growth year for the Fleet business which
achieved widespread market recognition of the effectiveness of our
pioneering Guardian solution. We believe that the FOVIO DMS
platform and processor will be a major long-term growth driver for
the Company, driven by the adoption of DMS which is increasingly
integral to ADAS and Autonomous driving technology. We have big
opportunities and plans ahead this year and the team looks forward
to making it happen."
Enquiries:
Seeing Machines Limited www.seeingmachines.com / +61
2 6103 4700
Mike McAuliffe, CEO Mike.McAuliffe@seeingmachines.com
Media enquiries Sophie.Nicoll@seeingmachines.com
finnCap Ltd
Ed Frisby / Emily Watts, Corporate
Finance +44 20 7220 0500
Tim Redfern / Richard Chambers,
Corporate Broking
Canaccord Genuity Limited
Simon Bridges +44 20 7423 8000
Richard Andrews
Alexander Napier
The information communicated in this announcement contains
inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) No. 596/2014.
About Seeing Machines
Seeing Machines, (AIM: SEE) is an industry leader in computer
vision technologies which enable machines to see, understand and
assist people. The Company deploys its machine learning vision
platform to deliver real-time understanding of drivers through AI
analysis of heads, faces and eyes, for Driver Monitoring Systems
(DMS) in most Transport sectors. DMS detects and manages
drowsiness, distraction and cognitive state of Drivers which is key
enabling technology for automotive ADAS/Autonomous Driving as well
as for Guardian, the Company's pioneering aftermarket commercial
fleet solution. The Guardian solution combines an in-cabin safety
intervention system with 24/7 telematics monitoring and cloud
analytics services delivered on a SaaS basis which prevents
accidents, saves costs, and lives. The Company also serves
Aviation, Rail, Off-Road markets and is enabling next generation
applications for precision eye tracking, offering solutions from
embedded software and FOVIO processors to aftermarket system and
service solutions. Based in Canberra, Australia with offices and
people in USA and Europe, the Company's products have been adopted
by global industry leaders in its markets.
www.seeingmachines.com
Review of Operations
Financial Results
The Company's total operating revenue from continuing operations
for the financial year (excluding foreign exchange gains and
finance income) was $13.6m compared to the 2016 revenue of A$33.6
million.
Product FY17 FY16 Variance
$'000 $'000 %
Fleet 9,085 3,315 174%
Automotive 1,621 1,089 49%
Off Road 2,491 728 262%
Off Road - One Off Licence - 21,850 -
Fee
DSS/Mining - 6,580 -
Aviation 365 -
Operating Revenue 13,562 33,562
Other income 9,209 2,546 219%
Finance income 470 1,371 (66%)
9,679 3,917
Total Revenue 23,241 37,479
Company revenue achieved was 122% that of FY16 on a
like-for-like basis. Revenue momentum accelerated through the year
with second half sales being more than 250% that of first half
sales. The key growth driver was the Fleet business with sales more
than 250% that of the previous year.
The significant growth of the Fleet business - revenue of $9.1m
for the year, almost triple the $3.3m in FY16 - was driven by both
direct sales and from new Distribution partners - this growth
momentum will be further supported by contributions from new
Telematics partner channels in FY18.
Customer wins included Kiattana, a Thailand based equipment
distributor, Autosense in New Zealand and Freshlinc in the UK. The
Division has focused its efforts on APAC, the US (where it now has
a significant business development presence) and Europe (the
company opened a UK sales office in the year).
In addition to hardware revenue, monthly recurring revenue
("MRR") is generated for monitoring and analytics services pursuant
to a SaaS ("Safety-as-a-Service") model with multi-year contracts.
The growth in these high margin services enabled the Company to
achieve a positive gross margin for the year.
The Automotive business is in its early stages, but still saw
revenue increase by 49%, from $1.1m in 2016 to $1.6m in FY17,
mainly as a result of consultancy work and the sale of
demonstration systems to potential customers.
Royalties under the Caterpillar agreement, signed in September
2015, and additional consulting work for Caterpillar produced 'Off
Road' revenue of $2.5m. This is over and above the $21.8m license
fee receivable from Caterpillar, which was booked in FY16.
These revenue figures exclude the Australian government research
and development tax incentive which is reported in the 'Other
Income' of $9.2m. The Group accounts for the R&D tax incentive
once it is probable of receiving the funds. For FY17 this resulted
in a 'doubling up' effect with both the FY16 and FY17 R&D tax
incentives being accounted for in the same period given likelihood
of receiving the funds. The total amount of R&D tax incentives
recognised in 'Other Income' in FY17 is $8.5m being the sum of:
-- $3.8m cash refund received during FY17 in respect of FY16; and,
-- $4.7m accrued in respect of FY17.
The R&D claim is currently in the process of being
prepared.
In addition, the company received 'Other Income' from research
project grants funded by the Australian Government, including the
Advanced Safe Truck Concept ("ASTC") program in collaboration with
leading fleet operators and OEMs. Further research grants from this
project, and the CAN-Drive semi-autonomous driving program, are
expected in FY18.
Finance income was lower than FY16 due to the paydown of the
Caterpillar license fee debtor (which is accounted for in a similar
way as an interest-bearing loan).
Costs of Goods Sold increased in line with increased sales
revenue from products and services. The overall gross margin
increased throughout the year as the underlying MRR accumulated
from high margin monitoring services. This resulted in an overall
gross profit of $0.1m for the year.
Indirect operating expenses rose from $32.8m to $38.3m due to
increased investment in our capability and resources to
commercialise our technology in our global target industries:
fleet, automotive, rail and aviation. This resulted in increased
R&D (mainly staff costs) marketing, facility and corporate
services costs, partially offset by there being no inventory write
off in FY17 ($5.2m in 2016).
This investment meant the Company made a net loss from
continuing operations of A$29.7m for the FY17 financial year,
compared to A$1.6m for the previous year.
During the financial year the Company raised $27.1m from the
issue of 412,871,750 new ordinary shares.
In addition, Caterpillar agreed to pay US$7.0m (US$3.5m
originally due in January 2017 and US$3.5m originally due in
January 2018) earlier than per the original licensing agreement in
return for consulting work performed free-of-charge. Hence only
US$1.5m remains to be received in January 2019.
Cash reserves - comprising cash ($21.4m) and term deposit
investments ($0.6m) - at 30 June 2017 were A$22.0m compared to
A$16.9m at 30 June 2016.
[2] Excluding one-off license fee to CAT and adjusting FY16 DSS
sales as if a royalty was earned on the gross sale instead
Operational Highlights
During the FY17 financial year the Company continued to execute
the multi-sector strategy with increasing focus on the
transportation sectors of : fleet, automotive, rail and aviation.
Investing heavily in the core intellectual property and
capabilities that define Seeing Machines, the Company is positioned
to capture significant value from all of these sectors and has
pioneered the industry of driver monitoring.
Automotive
Seeing Machines' integrated strategy retained the Automotive
business within the Company to leverage a common platform strategy
and leverage these synergies across the Company's key transport
industry segments.
The FOVIO platform and processor are key to the Seeing Machines
strategy to establish market leadership in high performance
full-stack human factor solutions, enabling machines to see,
understand and assist people, fundamental to the Seeing Machines
mission. Retention of the core technology platform within the
Company promises to deliver validated Driver Monitoring System
(DMS) solutions at scale across multiple segments, channels and
customers worldwide, cost-effectively.
In FY17, the Automotive business completed the release of its
first Automotive DMS for the world's first 'hands-free'
semi-autonomous car from a leading US OEM. This marks the beginning
of Seeing Machines mass deployment of DMS technology in the
automotive industry. This coincides with the company's ongoing work
with a range of OEM and Tier 1 partners, as demand increases for
access to the FOVIO DMS platform and processor in support of
semi-autonomous driving, driver safety, comfort, and convenience
applications.
Having converted the original Takata Corporation partnership
agreement to non-exclusive, the Company has leveraged opportunities
to build an expanding ecosystem of leading Automotive Tier 1
collaborations to best pursue global OEM business opportunities
such as the recently announced collaboration with Autoliv, a leader
in Automotive Safety Systems.
Fleet
The Fleet business has seen remarkable growth in FY17 and
continues to expand the global footprint of the Guardian System
through direct sales and in collaboration with Telematics partners
and an increasing Distribution network. Guardian sales were a key
driver for the overall revenue result with more than 250% sales
than that of the previous year. Market studies project the annual
addressable market opportunity for Fleet to exceed A$1.5 billion
within five years and Seeing Machines is recognised as a pioneer in
this market.
The Guardian System uses advanced computer vision technology to
detect and minimise driver fatigue and distraction events and
associated accidents in commercial fleet applications. The system
has demonstrated it can achieve over 90% reduction in fatigue and
distraction related driver events based on studies of worldwide
deployment experience. The solution provides real-time, in-cabin
alerts when fatigue or distraction is detected by the driver facing
sensors, which work in all light conditions including night driving
and the use of sunglasses. A forward-facing camera monitors the
road ahead and captures event video for analysis and assistance
with accident or liability claims - all of which can provide
valuable driver training insights and help reduce insurance
costs.
The Guardian application is further connected to a 24/7
monitoring centre and cloud analytics engine that gives fleet
owners a variety of customisable intervention and analytics
programs to complement their driver training and wellness
initiatives.
Consequently, in addition to Guardian System hardware revenue,
monthly recurring revenue is generated for analytics services
pursuant to a SaaS ("Safety-as-a-Service") model with multi-year
contracts (24/7 monitoring). A key metric for Fleet growth is Total
Contract Value ("TCV"), which increased from A$7.9M in FY16 to
A$36.5M at the end of FY17, representing growth of 360%. As at the
end of FY17, more than A$22M of this value has not yet been
recognised as revenue, with approximately half of this contract
value converting to revenue in FY18 and the remainder over the
following two years.
Launched in 2015, there are now over 130 Guardian System
customers globally. This growth has been driven by both direct
sales and through new distribution partners. The Company now has a
presence in the UK and Europe as demonstrated by the first UK based
customer, Freshlinc which was announced in April 2017. The ongoing
work in this region will be further bolstered by an expanding team
with the expectation that at least one additional business
development executive will be based in the UK to leverage the
significant opportunities in this market.
Seeing Machines announced in December 2016 that it had engaged
in a global distribution partnership with MiX Telematics, a leading
global provider of fleet and mobile asset management solutions. The
companies have since collaborated on a co-branded fatigue and
distraction solution that integrates Guardian technology with MiX
Telematics' fleet management and safety solution. MiX Telematics is
now actively promoting this integrated solution across its large
worldwide customer base. MiX Telematics offers its fleet and mobile
asset management solutions, through a Software as a Service (SaaS)
delivery model, to customers in more than 120 countries, across 6
continents and has a network of over 130 fleet partners.
In August 2017, Geotab, a worldwide leader in Fleet telematics
solutions, has added the Company's Fleet Guardian Solution, to the
Geotab Marketplace. Guardian is the latest Add-In application in
the Marketplace, which serves more than 14,000 Geotab customers and
the companies have collaborated for Seeing Machines to become a
Geotab Marketplace partner. Guardian integrates with Geotab's fleet
management solution and dashboard so dispatchers can intervene with
their drivers upon confirmed detection of danger events or
patterns, with cloud analysis reporting of events also
available.
Guardian sales continue to expand through the Company's
Distribution network with appointed distributors based in South
Africa, Asia, Latin America and Australia.
Seeing Machines has secured Fleet financing with several finance
companies and anticipates that up to 10% of Fleet revenue can be
factored. Working directly with customers, appointed finance teams
will facilitate the entire financing process from credit approval
to documentation to funding through a convenient, online tool.
Customers may finance the complete Guardian Solution, spreading
payments over the lifetime of their contract with Seeing
Machines.
Aviation
As the global Aviation industry expands rapidly, Seeing
Machines' technology will provide new data and measures to support
and optimise both pilot and operator selection, and training and
assessment through clear evidence based eye tracking and scan data.
The Company has established a clear pathway to market in three key
streams - Simulators, Aircraft and Consoles.
Simulators: Seeing Machines has engaged in multiple direct
engagements with carriers and operators, for both fixed wing and
rotary, gathering data in full flight simulators to support and
supplement pilot and crew training.
Aircraft: Proof of concept and prototype engagements with
Aircraft Manufacturers (OEMs) are ongoing where the Company works
in partnership to capture existing data in order to provide new
data for operational monitoring in the cockpit of commercial
aircraft.
Consoles: Currently undertaking data collection and reporting
activities for both training optimisation and operational
monitoring in several air traffic control operations globally.
The Company is moving toward formal engagements with leading
global players in both pilot and crew training and fatigue risk
management, and has strong development activities to develop the
technical readiness level of Seeing Machines Aviation products for
use in Commercial and Military Aviation applications.
Rail
The Rail market opportunity is compelling with 200,000 freight
and passenger trains worldwide, operating over 10 trillion freight
tonne-kilometres and 3 trillion passenger kilometres.
Seeing Machines has signed an exclusive Alliance and Master
Development Agreement with Progress Rail Services Corporation
(Progress Rail). Progress Rail, a Caterpillar company, is one of
the largest integrated and diversified suppliers of railroad and
transit system products and services worldwide. Since its
acquisition of Electro-Motive Diesel (EMD), Progress Rail is the
world's largest builder of diesel-electric locomotives for all
commercial railroad applications including freight, intercity
passenger, commuter, switching, industrial and mining.
The Agreement provides ongoing world-wide licence rights to
Progress Rail on a royalty basis for core rail applications and
outlines agreed minimum revenue targets for the first four years.
Further to hardware sales, each unit will be sold with the Seeing
Machines monitoring service, representing further ongoing revenue
stream for the Company.
Off-Road (Mining)
Seeing Machines is the exclusive provider of Caterpillar's
in-cab operator fatigue solution as dictated by 2015 licensing
Agreement between the Companies.
There are currently 5,000 Seeing Machines Driver Safety System
(DSS) units in vehicles across 50 mining customers globally.
Caterpillar's (CAT) footprint includes 3,000,000 CAT mining
vehicles globally, as well as other types of construction vehicles,
this represents a further opportunity of 10,000,000 vehicles across
Construction, Cement, Oil & Gas, Hazmat and Forestry
industries.
Under the exclusive licensing Agreement, CAT pays annual royalty
fees for DSS hardware, software licensing, monitoring and analytics
services to the Company.
Human Factors
Human Factors at Seeing Machines underpins the company's goal of
delivering world-leading OEM and aftermarket driving and operator
state monitoring solutions through cutting edge Human Factors
research programs with leading global universities and
partners.
Human Factors has two main areas of focus. The first is the core
research done internally and with research partners to advance
understanding of driver state across all transport sectors, using
scientific solution design and validation for optimum Human Machine
interfaces, generating valuable datasets for use across all
industry sectors. The second is around customer-focussed research
with our automotive, fleet and aviation customers, working with
them to design programs that showcase how the Seeing Machines
technology can be used to measure operator state in real-world
operational settings.
Seeing Machines, in partnership with Monash University's
Accident Research Centre and Ron Finemore Transport, was awarded an
Australian Government CRC-Project Grant for A$2.25 million over
three years to work on a project that builds on the Company's
Guardian technology platform. This project will advance Seeing
Machines' goal to deliver the next generation of fatigue prevention
and driver monitoring technology for the commercial transport
sector in Australia and around the world.
Seeing Machines will also lead what is expected to be the
world's first automated vehicle trial with a primary focus on the
driver - CAN Drive. The Australian Capital Territory (ACT)
Government has committed A$1.35 million to the trial, which will
use the Company's driver monitoring technology to build information
on the connection between driver behaviour and automated vehicles.
The Seeing Machines software monitors the driver's facial movements
and expressions to determine whether they are paying sufficient
attention and sounds an alert if they need to look at the road and
retain full control of the vehicle. The trial will be conducted in
different environments and under different road conditions across
the ACT.
Future Developments, Prospects and Business Strategies
Further to the appointment of Mike McAuliffe as CEO, the Company
has done considerable work on its strategy and business plan and is
pleased to share the following preliminary outlook.
-- Base Case Revenue expected to grow in-line with market
expectations for FY18, driven by strong momentum in Fleet, a
growing Automotive and Off-Road contribution and first meaningful
revenues from Aviation and Rail segments. Whilst there are
uncertainties around the timing ramp of any new markets, the
Company targets growing annual revenue to the sub A$100 million
region by the end of FY19.
-- The Company expects to deliver gross profit margins in the
low to mid thirty percent range for FY18, with additional gross
margin expansion of 500 to 1000 basis points (+5% to +10%) per year
for the next several years as the Company's business scales - to a
long term gross margin model of 60% to 70%+ which is consistent
with SaaS business models and high-performance IP processor
business models.
-- Given the Company's strategy to seize its first mover
advantage and scale major Fleet and Automotive businesses to market
leading positions - through continued investment in its Advanced
Platform Technology, Product Roadmap, Machine Learning
Infrastructure and a global support infrastructure for its
expanding customer base, the Company expects to potentially invest
up to A$50 million over the next two years to accelerate platform
and product development and build an infrastructure capacity to
support the sharp ramp in global customer programs. The Company
projects to achieve EBITDA breakeven by the end of FY19 with an
attractive EBITDA & Free Cash Flow margin profile accelerating
from that point on as the ensuing gross profit expansion
increasingly flows to the bottom line.
-- As the Company continues to advance its strategic business
plan and attracts market recognition for its leading technology
position, it is engaged in exploratory discussions with a number of
potential strategic partners - both industrial and financial - with
regards to various potential partnerships, R&D collaboration,
supply agreements and possible strategic investment in the
business.
Statement of Financial Position
Consolidated
2017 2016
AS AT 30 JUNE 2017 Note A$ A$
-------------------------------------------------- ----- ------------- -------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents 15 21,438,025 16,948,300
Trade and other receivables 16 7,581,367 6,786,046
Inventories 17 702,212 8,420,350
Current financial assets 21 574,793 241,159
Current taxation 11 - 85,581
R&D refundable tax offset receivable 4,700,825 -
Other current assets 18 3,565,033 663,615
------------- -------------
TOTAL CURRENT ASSETS 38,562,255 33,145,051
------------- -------------
NON-CURRENT ASSETS
Property, plant and equipment 19 959,040 691,961
Intangible assets 20 5,218,589 4,404,268
Non-current financial assets 21 140,191 140,191
Trade and other receivables 16 1,828,627 6,284,468
------------- -------------
TOTAL NON-CURRENT ASSETS 8,146,447 11,520,888
TOTAL ASSETS 46,708,702 44,665,939
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 22 5,611,096 1,801,771
Provisions 23 2,012,383 1,591,987
Deferred revenue 25 1,467,967 728,959
Income tax payable - 85,581
TOTAL CURRENT LIABILITIES 9,091,446 4,208,298
------------- -------------
NON-CURRENT LIABILITIES
Provisions 23 44,372 33,324
TOTAL NON-CURRENT LIABILITIES 44,372 33,324
------------- -------------
TOTAL LIABILITIES 9,135,818 4,241,622
------------- -------------
NET ASSETS 37,572,884 40,424,317
============= =============
EQUITY
Contributed equity 26 96,482,665 70,592,134
Treasury shares 26 (1,191,078) (1,226,938)
Accumulated losses (59,426,120) (29,737,234)
Other reserves 1,707,417 796,355
------------- -------------
Equity attributable to the owners of the parent 37,572,884 40,424,317
TOTAL EQUITY 37,572,884 40,424,317
============= =============
Statement of Comprehensive Income
Consolidated
2017 2016
FOR THE YEARED 30 JUNE 2017 Note A$ A$
-------------------------------------------------- ----- ------------- -------------
Continuing operations
Sale of goods and licence fees 8,628,633 30,949,453
Rendering of services 4,934,056 2,612,390
Revenue 13,562,689 33,561,843
------------- -------------
Cost of Sales (13,478,086) (6,259,566)
Gross Profit 84,603 27,302,277
------------- -------------
Other income 9 9,208,994 2,556,123
Net loss on foreign exchange (1,124,338) (181,652)
Finance income 470,351 1,370,973
Research and development expenses (15,930,287) (9,767,194)
Customer support and marketing expenses (11,431,082) (10,501,039)
Occupancy and facilities expenses (3,204,981) (2,289,188)
Corporate services expenses (6,571,088) (4,835,127)
Other expenses 10 (48,624) (5,253,139)
------------- -------------
Loss from continuing operations before
income tax (28,546,452) (1,597,966)
------------- -------------
Income tax expense 11 (1,142,433) (23,810)
------------- -------------
Loss from continuing operations after income
tax (29,688,885) (1,621,776)
Loss from discontinued operations after
income tax 8 - (20,485)
------------- -------------
Loss for the year after tax (29,688,885) (1,642,261)
============= =============
Loss for the year attributable to:
Equity holders of parent (29,688,885) (1,739,248)
Non-controlling interests - 96,987
------------- -------------
(29,688,885) (1,642,261)
============= =============
Other comprehensive income - to be reclassified
to profit and loss in subsequent periods
Exchange differences on translation of
foreign operations (244) (220,372)
Other comprehensive income net of tax (244) (220,372)
Total comprehensive income for the year (29,689,129) (1,862,633)
============= =============
Total comprehensive income for the year
attributable to:
Equity holders of parent (29,689,129) (1,959,620)
Non-controlling interests - 96,987
------------- -------------
Total comprehensive income for the year (29,689,129) (1,862,633)
============= =============
Earnings per share for loss attributable
to the ordinary
equity holders of the parent: 13
-- Basic earnings per share (0.0235) (0.0018)
-- Diluted earnings per share (0.0235) (0.0018)
Statement of Changes in Equity
Contributed Treasury Accumulated Foreign Employee Total Non-Controlling Total Equity
Equity Shares Losses Currency Equity Interest
Translation Benefits
Reserve Reserve
FOR THE YEAR ENDED A$ A$ A$ A$ A$ A$ A$ A$
30 JUNE 2017
At 1 July 2015 57,490,870 (1,301,823) (27,997,987) (544,438) 1,312,148 28,958,770 1,175,516 30,134,286
Profit/(Loss)
for the year - - (1,739,248) - - (1,739,248) 96,987 (1,642,261)
Other
comprehensive
income - - - (220,372) - (220,372) - (220,372)
------------ ------------ ------------- ------------ ---------- ------------- ---------------- -------------
Total
comprehensive
income - - (1,739,248) (220,372) - (1,959,620) 96,987 (1,862,633)
Transactions with
owners in their
capacity as
owners
Shares issued 13,136,529 - - - - 13,136,529 - 13,136,529
Capital raising
costs (2,736) - - - - (2,736) - (2,736)
Treasury Shares (32,529) 74,885 - - - 42,356 - 42,356
Employee Share
Loan Plan - - - - 249,018 249,018 - 249,018
Derecognition
of
Non-controlling
interest - - - - - - (1,272,503) (1,272,503)
------------ ------------ ------------- ------------ ---------- ------------- ---------------- -------------
At 30 June 2016 70,592,134 (1,226,938) (29,737,235) (764,810) 1,561,166 40,424,317 - 40,424,317
============ ============ ============= ============ ========== ============= ================ =============
-
At 1 July 2016 70,592,134 (1,226,938) (29,737,235) (764,810) 1,561,166 40,424,317 - 40,424,317
Loss for the year - - (29,688,885) - - (29,688,885) - (29,688,885)
Other
comprehensive
income - - - (244) - (244) - (244)
------------ ------------ ------------- ------------ ---------- ------------- ---------------- -------------
Total
comprehensive
income - - (29,688,885) (244) - (29,689,129) - (29,689,129)
------------ ------------ ------------- ------------ ---------- ------------- ---------------- -------------
Transactions with
owners in their
capacity as
owners
Shares issued 27,144,440 - - - - 27,144,440 - 27,144,440
Capital raising
costs (1,253,909) - - - - (1,253,909) - (1,253,909)
Treasury Shares - 35,860 - - - 35,860 - 35,860
Employee Share
Loan Plan - - - - 911,305 911,305 - 911,305
At 30 June 2017 96,482,665 (1,191,078) (59,426,120) (765,054) 2,472,471 37,572,884 - 37,572,884
============ ============ ============= ============ ========== ============= ================ =============
Statement of Cash Flows
Consolidated
2017 2016
FOR THE YEAR ENDED 30 JUNE 2017 Note A$ A$
------------------------------------------------- ----- ------------- -------------
Operating activities
Receipts from customers 19,621,179 29,420,077
Payments to suppliers and employees (40,085,855) (38,845,703)
Interest received 142,231 1,370,973
Income tax paid (1,142,433) (44,186)
Payments received for research and development
costs 3,830,614 2,764,224
Net operating cash flow from discontinued
operations - 260,095
Net cash flows used in operating activities 28 (17,634,264) (5,074,520)
------------- -------------
Investing activities
Proceeds from sale of plant and equipment - 1,052
Purchase of plant and equipment (788,947) (527,496)
Purchase of held-to-maturity financial
assets (333,634) (2,697)
Payments for intangible assets (1,450,621) (1,998,870)
Proceeds from sale of subsidiary - 1,299,264
Cash derecognised on sale of subsidiary - (2,445,969)
Net cash flows used in investing activities (2,573,202) (3,674,716)
------------- -------------
Financing activities
Proceeds from issue of shares 27,144,440 13,136,529
Proceeds from sale of treasury shares 35,860 42,356
Costs of capital raising (1,253,909) (2,736)
Net cash flows from financing activities 25,926,391 13,176,149
------------- -------------
Net increase in cash and cash equivalents 5,718,925 4,426,913
Net foreign exchange differences (1,229,200) (1,700,228)
Cash and cash equivalents at beginning
of period 16,948,300 14,221,615
Cash and cash equivalents at end of period 15 21,438,025 16,948,300
============= =============
This information is provided by RNS
The company news service from the London Stock Exchange
END
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(END) Dow Jones Newswires
September 11, 2017 02:01 ET (06:01 GMT)
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