Adslot Limited (ADS) 2016年年度報告「ASX」.pdf

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1、Contents 1 Chairmans Report 2 Directors Report 4 Remuneration Report 13 Auditors Independence Declaration 21 Consolidated Statement of Profit or Loss and Other Comprehensive Income 22 Consolidated Statement of Financial Position 23 Consolidated Statement of Changes in Equity 24 Consolidated Statemen

2、t of Cash Flows 25 Notes to the Financial Statements 26 Directors Declaration 63 Independent Audit Report to the Members 64 Corporate Governance Statement 67 Shareholder Information 67 Corporate Directory 68 Chairmans Report 2 Dear Shareholders,It is with great pleasure that I present the Companys A

3、nnual Report for 2016.Financial Year 2016 saw continued growth in the emerging Adslot business,with Trading Technology revenues up 59%on the prior year.Trading Revenues are the fastest growing part of the business made up of both Licence Fees(fixed contract recurring revenue)and Trading Fees(transac

4、tional revenue),both up 75%and 25%respectively on FY15.Revenues from continuing operations and total income were both up 19%on the prior year,and the Companys EBITDA loss was improved by a further 11%.From a cash-flow perspective,receipts from trade and other creditors grew 36%year on year,from$8.3m

5、 to$11.3m,while net cash outflows from operating activities continued to reduce by 13%,from($3.18m)to($2.75m).During the twelve months to 30 June 2016,the annualised value of digital ad spend captured via Symphony grew by 20%from$2.3 billion to$2.75 billion,currently sitting at$3 billion.Ad spend ca

6、ptured via the Symphony work-flow solution is strategically very important to the Company,as we will see this ad spend drive Trading Fees(clip of the ticket transactional revenue)in the years ahead.By far the Companys most significant announcement came in August this year,when Adslot announced it ha

7、d signed a long-term,world-wide contract to deploy Symphony for groupm-the biggest media buyer in the world-across multiple markets.This means the estimated digital ad spend executed via Symphony is expected to more than double to circa$7 billion over the next two years representing nearly 14%of the

8、 total digital ad spend globally in 2015.During the year,Adslots own CIO,Robyn Parker,was appointed co-chair of the global Internet Advertising Bureaus(IAB)“OpenDirect Working Group”,which developed the standard protocols adopted by the industry and announced in March 2016.A number of broking houses

9、 also initiated research coverage on the Company,including Petra Capital,BW Equities and Euroz.From a corporate perspective,we undertook a$4.6 million capital raising(strategic placement)in April 2016 at$0.08 a share.And following the announcement of the groupm contract and the release 3 of the end

10、of year financial results in August 2016,we announced a further$18 million placement and entitlements issue at$0.11 per share in September.As a result,the Company has never been in a stronger position to execute on its strategy.These funds will be invested to grow our engineering team significantly

11、over the next 18 months to maintain our product leadership globally;accelerate deployment of Symphony into groupm throughout Europe and the Asia Pacific region;and increase our sales and account service teams to drive adoption of our trading platform,which will in turn drive and accelerate the growt

12、h in transactional revenues for many years to come.Id like to take this opportunity to thank all our loyal shareholders who have continued to support the Company through the establishment phase,and trust all shareholders will be well-rewarded for their patience in the years to come.Yours sincerely,A

13、ndrew Barlow Chairman 28 September 2016 Directors Report 4 Your Directors present their report,together with the financial report of Adslot Ltd ACN 001 287 510(the Company)and its controlled entities(the Group)for the financial year ended 30 June 2016 and the auditors report thereon.Information on D

14、irectors All directors listed below were directors for the whole financial year and up to the date of this report.Mr Andrew Barlow Non-Executive Chairman(Age 43)Andrew Barlow is the founder of Adslot and an experienced technology entrepreneur.Prior to Adslot,Mr Barlow co-founded Hitwise with Adrian

15、Giles in 1997,was Chairman and Managing Director of Hitwise from 1997 2000,and Director of R&D from 2000 2002.Hitwise was ranked one of the Top 10 fastest growing companies by Deloitte for five years running,before being sold to Experian Group(LSX.EXPN)in May 2007.Mr Barlow is also the Founder of Ve

16、nturian,a privately-owned venture capital fund with investments in early-stage technology companies with unique IP,highly scalable business models and global market potential.Mr Barlow was also Founder and CEO of Max Super,an online retail superannuation fund sold to Orchard Funds Management in 2007

17、.Mr Barlow is a director of Nitro Software,Inc.Mr Adrian Giles Non-Executive Director(Age 42)Adrian Giles is an entrepreneur with business interests in Internet,information technology and intellectual property.In 1997 Mr Giles co-founded Sinewave Interactive which researched and pioneered the concep

18、t of marketing a website using search engines and was the first company in Australia to offer Search Engine Optimisation(SEO)as a service.In 1997 Mr Giles co-founded Hitwise which grew over 10 years to become one of the most recognised global internet measurement brands operating successfully in the

19、 USA,UK,Australia,NZ,Hong Kong,and Singapore.Whilst positioning the company for a NASDAQ listing in early 2007 Hitwise was sold to Experian(LSX:EXPN)in one of Australias most successful venture backed Internet trade sales.Mr Giles is also Chairman of Market Engine,a global retailing platform and sup

20、port company offering Western brands direct access to half a billion new customers in China.Mr Giles is Chair of the Remuneration Committee.Mr Ian Lowe CEO and Executive Director(Age 46)Ian Lowe is one of Australias most experienced digital media executives,having built and run a number of successfu

21、l global media technology companies from Australia.He has also forged an impeccable reputation in the advertising,media and technology community domestically and internationally,and has a deep understanding of both agency(demand-side)and publisher(supply-side)businesses.Mr Lowe previously held the r

22、ole of Chief Executive Officer of Facilitate Digital Ltd,and prior to that,worked for and managed numerous other media and media technology businesses including Traffion,Red Sheriff,PMP Limited,and George Patterson Bates.Mr Ben Dixon Executive Director(Age 43)Ben Dixons career in the advertising ind

23、ustry goes back over 18 years and includes roles at several large multinational agency groups including DDB and Mojo.He has wide experience across both the media buying and account management fields having held senior positions directing accounts for advertisers such as Telstra and Kraft Foods.In pa

24、rticular he was responsible for the development and implementation of eCommerce and online strategies across a number of advertisers.In late 1999 Ben conceptualised and then co-founded Facilitate Digital Pty Ltd,assuming the role of General Manager.In the subsequent 3 years he played an integral rol

25、e in steering the business through an industry collapse to a position of strength.Ben was appointed Chief Executive Officer of Facilitate when Adslot acquired it in December 2013.5 Mr Geoff Dixon Non-Executive Director(Age 76)Geoff Dixon is an experienced and successful corporate executive with a ba

26、ckground in the media,mining,aviation and tourism sectors at executive and board level.He was Managing Director and Chief Executive Officer of Qantas Airways Limited for eight years until 2008 and Chairman of Tourism Australia for six years until July 2015.He is Chairman of the Garvan Medical Resear

27、ch Foundation and Chairman of the privately held Australian Pub Fund.He is on the board of the publicly listed Crown Limited and the board of the Museum of Contemporary Art Australia,and is an Ambassador for the Australian Indigenous Education Foundation.Directorships of other Australian Listed Comp

28、anies during the past 3 years:Crown Limited from 7 July 2007 to present.Mr Quentin George Non-Executive Director(Age 46)Quentin George is one of the advertising industrys most credentialed and respected thought leaders.Based in the United States,Mr George has previously served as the Chief Digital a

29、nd Innovation Officer at IPG Mediabrands,where he was responsible for overseeing$2b in digital media spend across global media agency networks,as well as specialist digital agencies for Fortune 500 brands.Mr George has also previously held the positions of Global Head of Digital Media and Strategic

30、Innovation,and President,Global at Universal McCann.In 2008,Mr George led the team that architected and built the industrys first ever,standalone programmatic media-buying agency,Cadreon,which he successfully grew into a multi-national organisation encompassing North America,Europe and Asia-Pacific.

31、Mr George has also previously served on the customer advisory boards of Google,Microsoft Advertising,Yahoo!and AOL.He has also served on high-profile industry advisory boards including the Internet Advertising Bureau(IAB)and the American Association of Advertising Agencies(AAAAs),and has held senior

32、 leadership roles at digital agencies such as Razorfish and Organic.Ms Sarah Morgan Non-Executive Director(Age 46)Sarah Morgan is an experienced corporate finance advisor.Most of her career was as a Director of independent corporate advisory firm Grant Samuel.Over this time Ms Morgan was involved in

33、 a large number of transactions including public company M&A,IPOs,capital raisings(debt&equity),asset acquisitions and divestments,and company and business valuations,across a broad range of industries.Ms Morgan is a non-executive director of Hong Kong based Luxe City Guides and the National Gallery

34、 of Victoria Foundation and is on the advisory board of Melbourne Universitys entrepreneurship program-the Melbourne Accelerator Program.Directorships of other Australian Listed Companies during the past 3 years:Hansen Technologies Limited(ASX:HSN)from October 2014 to current Future Generation Globa

35、l Investment Company(ASX:FGG)from July 2015 to current.Ms Morgan is Chair of the Audit and Risk Committee.Mr Brendan Maher Company Secretary(Age 48)Brendan Maher joined the Company in 2010 as a qualified Chartered Accountant and has over 27 years experience gained both in Australia and overseas with

36、 Arthur Andersen,National Westminster Bank and Skilled Group Limited.Mr Maher has extensive experience in financial reporting,corporate transactions and was Company Secretary at Skilled Group Limited prior to joining Adslot.Mr Maher is a member of the Institute of Chartered Accountants in Australia

37、and New Zealand,and also a member of the Australian Institute of Company Directors.Directors Report(continued)6 Directorships of other listed companies Other than those disclosed on pages 4 to 5 of this Annual Report no director holds a Directorship in any other listed companies in the three year pe

38、riod immediately before the end of the financial year.Director shareholdings The following table sets out each directors relevant interest in shares or options in shares of the Company as at the date of this report.Directors Ordinary Shares#Share Rights#ESOP Shares#ESOP Shares Performance Rights#Mr

39、Andrew Barlow 57,803,769-Mr Adrian Giles 19,633,409-Mr Ian Lowe 14,461,929 17,000,000-Mr Ben Dixon 35,369,513-500,000 Mr Geoff Dixon 86,252,015-Mr Quentin George-1,000,000-Ms Sarah Morgan-Remuneration of directors and senior management Information about the remuneration of directors and senior manag

40、ement is set out in the remuneration report of this directors report.Directors Meetings The following table sets out the number of meetings of the Companys Directors held during the year ended 30 June 2016 and the number of meetings attended by each Director.Board of Directors Remuneration Committee

41、 Audit and Risk Committee Directors Held Attended Held Attended Held Attended Mr Andrew Barlow 9 9 3 3-Mr Ian Lowe 9 9-Mr Adrian Giles 9 9 3 3 3 3 Mr Geoff Dixon 9 7-3 2 Mr Ben Dixon 9 9-Mr Quentin George 9 6 3 3-Ms Sarah Morgan 9 9-3 3 Principal activities Adslot Ltd derives revenue from three prin

42、cipal activities:1.Trading Technology-comprises Adslot,a leading global media trading technology,and Symphony,market-leading workflow automation technology for media agencies.2.Services-comprises digital marketing services-provided by the companys Webfirm division-and project-based customisation of

43、Trading Technology.3.Adserving-technology that enables advertisers to deliver,measure and optimise the performance of online display advertising.Operating Results Underpinned by a year on year increase of 59%in Trading Technology revenues,Consolidated Group revenues for the FY16 period of$8,513,782

44、represent an increase of 19%versus the year prior($7,175,494).The Consolidated Group operating loss before interest,income tax,depreciation and amortisation(EBITDA)of$3,260,724 saw an improvement of 11%compared to a loss for the prior year of$3,647,611.The Consolidated Group operating loss of$8,138,

45、485,is a 12%improvement compared to a loss for the prior year of$9,205,521.Review of Operations 7 The 12 months to 30 June 2016 was significant for Adslot as the Company continued to progress the execution of its strategy and build sales momentum.Significant achievements for FY16 include:59%growth i

46、n Trading Technology revenues Major enhancements to the Symphony-Adslot integration and first wave of trading activity via the integration secured Successful deployment of material product feature enhancements These achievements,in combination with the global multi-year contract with groupm announce

47、d on 19th August(see further detail under Subsequent Events on page 11)-have generated sales momentum,and see the Company well positioned to benefit from ongoing,accelerating growth in Trading Technology revenues in FY17 and beyond.Significant Achievements 59%growth in Trading Technology revenues ye

48、ar on year The Trading Technology revenue segment was the Groups growth driver,increasing by 59%against the prior corresponding period and the largest contributing revenue segment for the Group.Trading Technology revenues comprise Symphony,a market-leading workflow automation technology(from which t

49、he Company derives Licence Fees)and Adslot,a leading global media trading technology(from which the Company derives Trading Fees).Both platforms provide purpose built interfaces for media agencies and publishers to plan,negotiate and trade online display advertising.Licence Fees and Trading Fees bot

50、h contributed growth in FY16,with Licence Fees accounting for the majority of total Trading Technology revenues and delivering higher year on year growth in dollar terms.Review of Operations(continued)8 Due to the seasonal slow down in media buying in the March quarter,Trading Fees dipped in 2H FY16

51、 as expected.The June quarter saw an increased level of campaign activity although trading activity across the industry generally was slightly softer than anticipated,as evidenced by spend levels in both Symphony and Adslot.The September quarter has seen a significant lift,with trading activity to A

52、ugust 29 already exceeding that prior quarter and with approximately 35%of the quarter remaining.It is expected the majority of the cash flow impact of this increased trading activity will be realised in the December quarter.The combination of agency workflow technology(Symphony),and media trading t

53、echnology(Adslot)provides Adslot with a unique combination of assets that benefit both media buyer and seller.The integration of these two platforms,whereby Adslot can leverage circa$3b of media buying captured within Symphony to generate Trading Fees,is a core growth strategy of the Company(see fur

54、ther comments under First trading activity secured via the Adslot-Symphony integration).In line with growth in Licence Fees,Symphonys global user base of media planners,media buyers and online publishers continues to build(see chart below).This growing community of media traders and the incumbency t

55、heir reliance on Symphonys workflow automation,in combination with the ongoing integration of Adslots trading tools into Symphonys workflow,creates a strong position from which to establish adoption momentum and Trading Fee revenue growth.Valued at USD$51b in 2015,online display advertisings forward

56、 guaranteed segment presents material growth opportunity for Adslot in FY17 and beyond.Revenue segments other than Trading Technology performed broadly in line with expectation:Services revenues increased by 6%year on year and are expected to remain flat going forward Adserving revenues declined in

57、FY16 and are expected to continue to decline over the course of FY17 Significant Enhancements to the Symphony-Adslot Integration Over the FY16 period a number of major feature enhancements were made to the Adslot-Symphony integration.These enhancements are central to the continuous improvement of th

58、e trading toolset available within Symphony,and by virtue of it accelerated user adoption of the toolset.Examples of major enhancements to the integration include:Briefing allows a buyer to describe a series of campaign objectives then distribute this in the form of a brief to select publishers.In r

59、esponse,publishers can then use Adslots real time availability feature to generate a schedule of proposed activity and share it with the buyer.Frequency Capping allows a buyer to configure the number of times over any chosen period they want an individual to see a campaign,then query inventory avail

60、ability against it in real time.Key Value Targeting allows a Symphony buyer to view and configure advanced targeting options for a publisher product as they would if using the Adslot interface.Discount/Commission Management enhancements to how a buyer and seller collaborate/negotiate and agree via t

61、he platform applicable discount and commission rates.Alerts enhancements-publisher comments entered into Adslot are displayed on screen and via email alert to the Symphony buyer.Enhanced controls&permissions improved business rule management for media agencies,allowing them to assign authorisation r

62、ights and controls for any trade managed via the Symphony-Adslot integration.9 First Wave of Trading Activity via the Integration Secured FY16 saw the commencement of trading activity via the Symphony-Adslot integration from Symphony clients in multiple geographies including Australia,New Zealand an

63、d Europe.Whilst still in the early adoption phase,this activity has exposed a number of large agencies to the capabilities within the Symphony-Adslot integration.All trades executed have been successful and customer validation evident in the form of repeat activity.The Company remains particularly f

64、ocused on this area of the growth opportunity,and momentum continues to build as some of Adslots largest Symphony clients plan to transition more of their trading activity to the integration in 1H FY17.While the majority of Trading Fees in FY16 were not generated via the Symphony-Adslot integration,

65、as Trading Fee revenue growth accelerates it is expected that an increasing percentage of this will be derived from the integrated solution.Successful Deployment of Material Product Feature Enhancements Over the FY16 period a number of major feature enhancements were also made to the Adslot platform

66、.These enhancements all provide incremental value to the buyer and seller using Adslot,and in combination have materially increased the value of the technology to both the media buyer and the media seller.Examples include:Briefing allows a buyer to describe a series of campaign objectives then distr

67、ibute this in the form of a brief to select publishers.Publishers can then use Adslots real time availability feature to generate a schedule of proposed activity and share it with the buyer in response.Discount/Commission Management allows buyer and seller to collaborate via the platform to agree/ne

68、gotiate applicable discount and commission rates.Video allows buyers and sellers to more seamlessly trade video inventory including automation of VAST tags.Ad-hoc products allows a buyer and seller to trade product inventory that may not yet be fully set up by the seller in the Adslot platform.This

69、ensures trades that have a narrow window in which to close can be executed first,and the set up completion undertaken at a future date.Device targeting allows a seller to expose device specific targeting(e.g.mobile,tablet)to a buyer.Status messaging enhancements to status messaging for publishers(se

70、llers),including opt in/out features.Improvements to the API for integrations(e.g.Symphony).Improvements to briefing and planning workflows.Review of Operations(continued)10 Several of these feature enhancements have rapidly translated to increased adoption.For example,in the corresponding 12 months

71、 to June 30 2016:The number of mobile/video products available to buyers in the Adslot marketplace increased by 93%The total number of(all)products available to buyers in the Adslot marketplace increased by 38%Likely Developments and Business Strategies Continued Growth in Trading Technology Revenue

72、s The three-year trend of Trading Technology revenue growth is expected to continue and accelerate,derived from growth in both Licence Fees and Trading Fees.In FY17,it is anticipated that growth in Licence Fees will outpace growth in Trading Fees in dollar terms,due significantly to the global multi

73、-year contract with groupm announced on 19th August(see further detail under Subsequent Events on page 11).In combination with the organic growth of Licence Fees from existing clients(as global digital ad spend continues to grow at circa 20%CAGR)and new business opportunities,Licence Fee revenues wi

74、ll in the short to medium term represent the majority of Trading Technology revenues.Trading Fee growth will also continue,and in percentage growth terms likely exceed Licence Fee growth year on year.The hybrid of passive,recurring Licence Fees and transaction generated Trading Fees is a strong posi

75、tion from which the Company can focus increasing sales effort over time to unlock more Trading Fees from Symphony customers.Whilst Trading Fees is a relatively nascent revenue stream,and the media industry remains in the early adoption phase,the Companys sales pipeline is building and the revenue op

76、portunity it presents is a multiple of Licence Fees.Continued Growth of Demand Captured via Symphony As a direct result of the global multi-year contract with groupm announced on 19th August(see further detail under Subsequent Events on page 11),and in combination with the rate of industry growth in

77、 global digital ad spend,Adslot expects to see a significant lift in the value of media activity(demand)executed via Symphony over the next 3+years as outlined in the chart below.Annualised Display Spend Executed via Symphony(AUD)In addition to the general correlation between activity executed via S

78、ymphony and the Licence Fees it generates,the anticipated growth in this demand(projected to be as high as circa$7b annualised by Q4 FY18),increases with it the size of the Trading Fee revenue opportunity.Furthermore,as the level of activity and demand captured via Symphony builds,the Companys abili

79、ty to leverage this to drive adoption of its integrated trading toolset improves.11 The Integration of Symphony and Adslot will be Continually Enhanced The Company has engaged in close consultation with agencies and publishers,including the global Symphony agency client base,and identified a number

80、of enhancements to the Symphony-Adslot integration that its confident will generate accelerated adoption and with it further Trading Fee revenue growth.Customer feedback from those that have used the Symphony-Adslot integration,Symphony agencies yet to use the integration,and agencies and publishers

81、 more generally,has identified a number of areas in which new features will substantially increase adoption.The product areas targeted for future development include:Enhanced audience segmentation buyers want to be able to rapidly discover,plan,negotiate and trade audience targeted products and inve

82、ntory.Enhancements in this area of the platform and the Symphony-Adslot integration will also allow online publishers to expose more granular audience variables to buyers including the ability to match to an audience specific to an advertiser or campaign.Performance optimisation:o Buyers and sellers

83、 want to reference their aggregate trading history to inform discussions and negotiations pertaining to what inventory to buy/sell,and the price the pay/ask for it.o Buyers and sellers want to reference historical campaign performance to inform discussions and negotiations pertaining to what invento

84、ry to buy/sell,its projected value or performance and the price to pay/ask.Partner integrations the Company expects to complete and launch two partner integrations in 1H FY17,further detail of which will be released on completion.These product enhancements align with the Companys belief that trading

85、 automation must deliver more than just operational efficiency,but also improve campaign effectiveness(performance).Matters Subsequent to the End of the Financial Year Global Multi-Year Contract with groupm the Worlds Largest Media Buyer On 19th August 2016 the Company announced it had signed a mult

86、i-year contract with groupm.A division of WPP,groupm is a multi-national media agency group and the worlds largest media buyer.The global contract will see groupm activate Adslots workflow and trading automation platform Symphony into a significant number of new markets,including an immediate commit

87、ment to multiple deployments in Europe and APAC.The contract also sees groupm renew their commitment to Adslot across APAC,where Symphony has already been deployed in a number of markets including Australia,China and Japan.The contract has a number of material implications,including:Significant addi

88、tional revenue in the form of Licence Fees as new markets are deployed(see commentary in section Continued Growth of Demand Captured via Symphony on page 11).Global deal with immediate focus on multiple market deployments across Europe and APAC.Fully funded market entry for each new country of deplo

89、yment Establishes Adslot as a truly global solution via:o a new customer footprint in the EMEA region,and o an expanded customer footprint in the APAC region.In combination with organic growth from existing customers and other new business,the value of media executed via Symphony is expected to incr

90、ease from circa$3 billion per annum to circa$7 billion per annum over the next 2-3 years.As a result,Adslots Automated Guaranteed Trading Fee opportunity via the Symphony-Adslot integration will effectively double.Market-ready product can be sold into the broader industry in each new market activate

91、d.Using Adslots existing service and support footprint,and its highly scalable cloud based infrastructure,costs incurred to support the contracted revenue growth secured via the groupm agreement are modest and incremental.The Company is keenly focused on optimising the speed of new market activation

92、s for groupm.Environmental regulations The Groups operations are not subject to any significant environmental regulations under the Commonwealth,State or any other country in which the entity operates.Dividends The Directors do not recommend the declaration of a dividend.No dividend has been declare

93、d or paid during the year.Review of Operations(continued)12 Shares under option There were no unissued shares or interests under option as at the date of signing this report.Shares subject to rights Details of unissued shares or interests subject to rights as at the date of signing this report are:C

94、EO Sign on Rights Share price required(a)Number of rights Right to receive ordinary shares$0.200 3,000,000 Right to receive ordinary shares$0.300 4,000,000 Right to receive ordinary shares$0.400 5,000,000 Right to receive ordinary shares$0.500 5,000,000 Total 17,000,000(a)Share price required to tra

95、de above a 30 day VWAP before entitlement to Right Executive Performance Rights Issue Type Issue or Acquisition Date Issue Price$Balance at beginning of the year(Number)Issued during the year(Number)Transfers during the year(Number)Forfeited during the year(Number)Balance at end of the year(Number)P

96、erformance Rights 26/11/14 Nil 10,750,000-(2,520,377)(2,920,100)5,309,523 Performance Rights 26/8/15 Nil-2,660,000-(705,000)1,955,000 Performance Rights 27/06/16 Nil-600,000-600,000 10,750,000 3,260,000(2,520,377)(3,625,100)7,864,523 Indemnification and Insurance of Officers The Company has during t

97、he financial year,in respect of each person who is or has been an officer of the company or a related body Corporate,made a relevant agreement for indemnifying against a liability incurred as an officer,including costs and expenses in successfully defending legal proceedings.Since the end of the fin

98、ancial year,the Company has paid premiums to insure all directors and officers of Adslot Ltd and the Adslot Group of companies,against costs incurred in defending any legal proceedings arising out of their conduct as a director and officer of the Company,other than for conduct involving a wilful bre

99、ach of duty or a contravention of Sections 232(5)or(6)of the Corporations Act 2011,as permitted by section 241A(3)of the Corporations Act.Disclosure of the premium amount is prohibited by the insurance contract.Proceedings on behalf of the Company No person has applied to the Court under section 237

100、 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.No proceedings have been brought or interven

101、ed in on behalf of the company with leave of the Court under section 237 of the Corporations Act 2001.Auditors Independence Declaration The auditors independence declaration for the year ended 30 June 2016 has been received and can be found on page 21 of the financial report.Details of amounts paid

102、or payable to the auditor for non-audit services provided during the year are outlined in Note 21 to the financial statements.The Directors are satisfied that the provision of non-audit services,during the year by the auditor is compatible with the general standard of independence for auditors impos

103、ed by the Corporations Act 2001.Remuneration Report 13 The remuneration report is set out under the following headings:Section 1:Non-executive directors remuneration Section 2:Executive remuneration Section 3:Details of remuneration Section 4:Executive contracts of employment Section 5:Equity-based

104、compensation Section 6:Equity holdings and transactions Section 7:Other transactions with key management personnel Section 1:Non-executive directors remuneration Non-executive directors fees are reviewed annually and are determined by the Board.In making its determination it takes into account fees

105、paid to other non-executive directors of comparable companies.Non-executive directors fees are within the maximum aggregate limit of$350,000 per annum agreed to by shareholders at the Annual General Meeting held on 30 November 2009.To preserve the independence and integrity of their position,non-exe

106、cutive directors do not receive performance-based bonuses.The Chairmans fees are$75,000 per annum.Non-executive directors fees are$50,000 per annum.In addition,the Chair of the Audit&Risk Committee receives a further$25,000 in recognition of the additional workload of that position.Section 2:Executi

107、ve remuneration The Board of Directors are responsible for determining and reviewing compensation arrangements for key management personnel and the executive team.In June 2011,the Company established a Remuneration Committee who now makes recommendations on remuneration of key management personnel t

108、o the Board.The Board assesses the appropriateness of the nature and amount of emoluments of these employees on a periodic basis by reference to relevant employment market conditions with the overall objective of ensuring maximum stakeholder benefit from the retention of high quality executives.Exec

109、utives remuneration consists of a fixed cash component,short-term incentives in the form of cash bonuses,and long-term incentives in the form of equity-based compensation linked to the long term prospects and future performance of the Company.The inclusion of equity-based compensation in executives

110、remuneration provides a direct link between their remuneration and shareholder wealth,otherwise there are no direct relationships.In providing the Companys performance and benefits for shareholder wealth,the Board have regard to the following indices in respect of the current financial year and the

111、previous four financial years:Item 2016 2015 2014 2013 2012 EPS(cents)(0.77)(0.89)(1.20)(0.94)(1.08)Net loss($)8,138,485 9,205,521 10,095,562 6,460,947 7,331,658 Share price at 30 June($)0.110 0.090 0.115 0.044 0.035 Remuneration Report(continued)14 Section 3:Details of remuneration Details of the r

112、emuneration of the directors and the key management of the Company and its controlled entities are set out in the following tables.The key management personnel of Adslot Ltd and its controlled entities include the following directors and executive officers:Directors Position Date appointed/resigned

113、Mr Adrian Giles Non-Executive Director Appointed 26 November 2013 Mr Andrew Barlow Non-Executive Director Non-Executive Chairman Appointed 16 February 2010 Appointed 26 November 2013 Mr Ian Lowe Chief Executive Officer Executive Director Appointed 8 October 2012 Appointed 8 October 2012 Mr Ben Dixon

114、 Executive Director Appointed 23 December 2013 Mr Geoff Dixon Non-Executive Director Appointed 23 December 2013 Mr Quentin George Non-Executive Director Appointed 14 June 2014 Ms Sarah Morgan Non-Executive Director Appointed 27 January 2015 Executive Officers Mr Brendan Maher Company Secretary/Chief

115、 Financial Officer Appointed 15 November 2010 Mr Tom Peacock Group Commercial Director Appointed 23 December 2013 15 Group 2016 Short-term benefits Long Term Benefits Post-employment benefits Share-based payment Name Salary&fees Bonus Other Long Service Leave Super-annuation Shares1 Rights1 Total$Ex

116、ecutive directors Mr I Lowe 309,000-19,308-328,308 Mr B Dixon 203,854 17,351-8,969 20,818-28,572 279,564 Non-executive directors Mr A Giles 50,000-50,000 Mr A Barlow 68,493-6,507-75,000 Mr G Dixon 45,662-4,338-50,000 Mr Q George 50,000-25,744-75,744 Ms S Morgan 68,493-6,507-75,000 Other key manageme

117、nt personnel Mr B Maher 252,838-7,628 19,308 19,743 47,620 347,137 Mr T Peacock 205,500-5,745 19,308 89,891 38,096 358,540 Totals 1,253,840 17,351-22,342 96,094 135,378 114,288 1,639,293 1 Awards of Shares and Rights are governed by the rules of the Companys ESOP.Given the forfeiture conditions cont

118、ained in that Plan,these awards are in substance rights issues.Bonuses Bonuses appearing in the table above were paid for the year ended 30 June 2016(but relate to the performance from the prior year)as follows:Name Amount Paid Amount available in future periods Total Bonus Opportunity Assessment Cr

119、iteria$Mr I Lowe-125,000 Company performance to budget,product development and launch,and client&partnership signings.Mr B Dixon 17,351-55,000 Performance related KPIs.Mr B Maher-45,063 Division performance,governance,reporting and performance related KPIs.Mr T Peacock-N/A(a)Performance related KPIs

120、.(a)Not applicable as total bonus opportunity is based on a percentage of the Groups performance.No portion of the total bonus opportunity for key management personnel was forfeited.Remuneration Report(continued)16 Section 3:Details of remuneration(Continued)Group 2015 Short-term benefits Long Term

121、Benefits Post-employment benefits Share-based payment Name Salary&fees Bonus Other Long Service Leave Super-annuation Shares1 Rights1 Total$Executive directors Mr I Lowe 309,000 20,531-18,783 12,123 113,384 473,821 Mr B Dixon 175,397 5,000-5,663 17,599 _ 7,253 210,912 Non-executive directors Mr A Gi

122、les 50,000-50,000 Mr A Barlow 68,493-6,507-75,000 Mr G Dixon 45,662-4,338-50,000 Mr Q George 50,000-60,683-110,683 Ms S Morgan(i)29,680-2,820-32,500 Other key management personnel Mr B Maher 266,862 15,000-11,101 20,208 51,280 12,089 376,540 Mr T Peacock 200,000 10,000-3,722 18,783 134,381 9,671 376

123、,557 Totals 1,195,094 50,531-20,486 89,038 258,467 142,397 1,756,013 1 Awards of Shares and Rights are governed by the rules of the Companys ESOP.Given the forfeiture conditions contained in that Plan,these awards are in substance rights issues.(i)from 27 January 2015 Bonuses Bonuses appearing in th

124、e table above were paid for the year ended 30 June 2015(but relate to the performance from the prior year)as follows:Name Amount Paid Amount available in future periods Total Bonus Opportunity Assessment Criteria$Mr I Lowe 20,531-125,000 Company performance to budget,product development and launch,a

125、nd client&partnership signings.Mr B Dixon 5,000 19,000 55,000 Performance related KPIs.Mr B Maher 15,000-45,063 Division performance,governance,reporting and performance related KPIs.Mr T Peacock 10,000-N/A(a)Performance related KPIs.(b)Not applicable as total bonus opportunity is based on a percent

126、age of the Groups performance.No portion of the total bonus opportunity for key management personnel was forfeited.17 Section 4:Executive contracts of employment Formal contracts of employment for all members of the key management personnel are in place.Contractual terms for most executives are simi

127、lar but do,on occasions,vary to suit different needs.The following table summarises the key contractual terms for all key management personnel.Length of contract Open ended Fixed Remuneration Remuneration comprises salary and statutory employer superannuation contributions.Incentive Plans Eligible t

128、o participate.Incentive criteria and award opportunities vary for each executive.Notice Period Members of the key management,including executive directors,have notice periods ranging from three weeks to three months.The Chief Executive Officer and Chief Financial Officer have notice periods of 3 mon

129、ths.Other Executives have notice periods ranging from 3 weeks to 1 month.Resignation Employment may be terminated by giving notice consistent with the notice period.Retirement There are no financial entitlements due from the Company on retirement of an executive.Termination by the Company The Compan

130、y may terminate the employment agreement by providing notice consistent with the notice period or payment in lieu of the notice period.Redundancy Payments for redundancy are discretionary and are determined having regard to the particular circumstances.There are no contractual commitments to pay red

131、undancy over and above any statutory entitlement.Termination for serious misconduct The Company may terminate the employment agreement at any time without notice,and the executive will be entitled to payment of remuneration only up to the date of termination.Section 5:Equity-based compensation Perfo

132、rmance Rights over Shares Shareholders approved at the November 2014 Annual General Meeting the creation of Performance Rights over Shares which enables the Board to offer eligible employees the right to Performance Rights which convert to shares subject to the executives performance against certain

133、 performance criteria.No amounts are paid or payable by the recipient on receipt of the right.The rights carry no voting rights.All rights are subject to service periods which require the employees remain an employee of the Company.The following table shows grants of share-based compensation to dire

134、ctors and senior management under the Performance Rights Plan during the current financial year:Name Series Balance at beginning of the year(Number)Granted during the year(Number)Expired during the year(Number)Exercised during the year(Number)Balance at the end of the year(Number)Ben Dixon Nov 14 75

135、0,000-(250,000)500,000 Brendan Maher Nov 14 1,250,000-(416,667)833,333 Tom Peacock Nov 14 1,000,000-(333,333)666,667 3,000,000-(1,000,000)2,000,000 No Performance rights to shares were granted to KMP during the year ended 30 June 2016.The following table shows grants of share-based compensation to d

136、irectors and senior management under the Performance Rights Plan during the prior year ending 30 June 2015:Name Series Balance at beginning of the year(Number)Granted during the year(Number)Expired during the year(Number)Exercised during the year(Number)Balance at the end of the year(Number)Ben Dixo

137、n Nov 14-750,000-750,000 Brendan Maher Nov 14-1,250,000-1,250,000 Tom Peacock Nov 14-1,000,000-1,000,000 -3,000,000-3,000,000 Remuneration Report(continued)18 Section 5:Equity-based compensation(Continued)The model inputs for Performance rights to shares granted during the year ended 30 June 2015 in

138、cluded:Model Input PR#15-2 Grant Date 26/11/2014 Assessment period 2 years Exercise Price-Probability of Conversion to Shares 25%Price at Grant Date$0.105 Employee share ownership plan(ESOP)In November 2012 the Company gained approval to establish an employee incentive scheme comprising the Adslot L

139、imited Share Option Plan and the Adslot Employee Share Trust.Rights to shares are available to be issued to eligible employees based on the performance against agreed key performance indicators.Any rights awarded are subject to a two-year service period and if this service period is not met,the righ

140、ts to shares will be forfeited by the eligible employee.Shares held by the Trust under the scheme will have voting and dividend rights,and the right to participate in further issues pro-rata to all ordinary shareholders.The ESOP was replaced by the Performance Rights over Shares Plan in financial ye

141、ar 2015 and as such there have been no new ESOP rights granted during the years ending 30 June 2016 and 30 June 2015.The following table shows the vesting of ESOP share-based compensation to directors and senior management under the ESOP for the current financial year ended June 2016:During the Fina

142、ncial year Name ESOP Series Number Granted Number Vested%of Grant Vested%of Grant Forfeited Brendan Maher Sept 2013 March 2014-763,602 561,526 100%100%0%0%Tom Peacock Jan 2014 March 2014-176,928 2,823,072 100%100%0%0%The following table shows the vesting of ESOP share-based compensation to directors

143、 and senior management under the ESOP during prior year ending June 2015:During the Financial year Name ESOP Series Number Granted Number Vested%of Grant Vested%of Grant Forfeited Ian Lowe October 2012-1,500,000 100%0%Brendan Maher September 2012-1,674,872 100%0%19 Rights over Shares Upon commenceme

144、nt of employment(8 October 2012)Mr Lowe was granted the right to receive the following shares after the share price of the Company trades above a 30 day volume-weighted average price(VWAP)as per the table below.Each right would convert into one ordinary share of Adslot Ltd when the VWAP criteria is

145、met.In the event of a Change of Control of the Company some of these Rights would vest on a sliding scale between the take over price and required VWAP of the next eligible series.No amounts are paid or payable by the recipient on receipt of the right.The rights carry no voting rights.Some rights ar

146、e subject to escrow per the below table and all rights are subject to Mr Lowe remaining an employee of the Company.Rights over shares movements during the financial year are summarised below:Issue Type Required VWAP Price$Balance at beginning of the year(Number)Granted during the year(Number)Expired

147、 during the year(Number)Exercised during the year(Number)Balance at the end of the year(Number)Rights over shares 0.200 3,000,000-3,000,000 Rights over shares 0.300 4,000,000-4,000,000 Rights over shares 0.400 5,000,000-5,000,000 Rights over shares 0.500 5,000,000-5,000,000 17,000,000-17,000,000 Dur

148、ing the year,the 3,000,000 Rights over shares relating to the 10 cents VWAP hurdle,that were awarded in December 2013 to Mr Lowe,were released from their 2-year escrow requirement and transferred from the Employee Share Trust unencumbered to Mr Lowe.The following table shows grants of rights over sh

149、ares to directors and senior management during prior year ending 30 June 2015:Issue Type Required VWAP Price$Balance at beginning of the year(Number)Granted during the year(Number)Expired during the year(Number)Exercised during the year(Number)Balance at the end of the year(Number)Rights over shares

150、 0.200 3,000,000-3,000,000 Rights over shares 0.300 4,000,000-4,000,000 Rights over shares 0.400 5,000,000-5,000,000 Rights over shares 0.500 5,000,000-5,000,000 17,000,000-17,000,000 Details of ESOP and other rights to ordinary shares in the Company provided as remuneration of directors and the key

151、 management personnel of the Company are set out below:Rights Granted During the Year Rights Vested During the Year Name 2016 2015 2016 2015 Number$Number$Number$Number$Directors Mr Adrian Giles-Mr Ian Lowe-1,500,000 165,000 Mr Andrew Barlow-Mr B Dixon -750,000 78,750 250,000 26,250-Mr G Dixon -Mr Q

152、 George -Ms S Morgan(i)-Other Key Management Personnel Mr B Maher-1,250,000 131,250 1,741,795 122,695 1,674,872 245,109 Mr T Peacock -1,000,000 105,000 3,333,333 288,682-(i)from 27 January 2015 The assessed fair value at issue date of the rights granted to the executive is allocated equally over the

153、 period from issue date to vesting date,and the amount is included in the remuneration tables above.Remuneration Report(continued)20 Section 6:Equity holdings and transactions The number of shares in the Company held during the financial year by each Director of Adslot Ltd and other key management p

154、ersonnel of the Group,including their personally related parties,are set out below:2016 Name Balance at the start of the year(Number)Received during the year as compensation(Number)Net other changes during the year(Number)Balance at the end of the year(Number)Directors Mr A Giles 19,633,409-19,633,4

155、09 Mr A Barlow 57,803,769-57,803,769 Mr I Lowe 11,461,929 3,000,000-14,461,929 Mr B Dixon 35,119,513 250,000-35,369,513 Mr G Dixon 86,252,015-86,252,015 Mr Q George -Ms S Morgan -Other key management personnel Mr B Maher 274,872 1,741,795(1,455,141)561,526 Mr T Peacock 742,642 3,333,333-4,075,975 To

156、tals 211,288,149 8,325,128(1,455,141)218,158,136 Section 7:Other transactions with Key Management Personnel Transactions with Directors and their personally related entities:During the year the Company earned revenue to the value of$353 from a Publisher related to Mr Ben Dixon and Mr Geoff Dixon on

157、normal commercial terms and conditions.This marks the end of the audited remuneration report.This report is made in accordance with a resolution of directors.Andrew Barlow Chairman 31 August 2016 Consolidated Statement of Profit or Loss and Other Comprehensive Income For the year ended 30 June 2016

158、22 2016 2015 Notes$Total revenue from continuing operations 7,735,278 6,495,312 Other income 778,504 680,182 Total revenue and other income 3 8,513,782 7,175,494 Hosting&other related technology costs (1,402,979)(1,094,477)Salaries and employment related costs (6,908,429)(5,954,451)Directors fees (2

159、98,656)(259,568)Marketing costs (104,830)(246,726)Lease rental premises 4(941,552)(820,431)Impairment of receivables 4(28,240)37,440 Listing®istrar fees (111,237)(117,301)Legal fees (27,728)(35,993)Travel expenses (315,124)(396,234)Consultancy fees (76,236)(44,553)Audit and accountancy fees (159,

160、889)(138,284)Other expenses (884,133)(854,693)Share based payment expense (440,138)(702,806)Depreciation and amortisation expenses 4(4,930,957)(5,731,779)Total expenses (16,630,128)(16,359,856)Loss before income tax expense (8,116,346)(9,184,362)Income tax benefit/(expense)5(22,139)(21,159)Loss afte

161、r income tax expense (8,138,485)(9,205,521)Net loss attributable to members (8,138,485)(9,205,521)Other comprehensive income/(loss)Items that may be reclassified subsequently to profit or loss Foreign exchange translation (10,739)53,065 Total other comprehensive income/(loss)(10,739)53,065 Total com

162、prehensive loss attributable to the members (8,149,224)(9,152,456)2016 2015 Cents Cents Earnings per share(EPS)from loss from continuing operations attributable to the ordinary equity holders of the company Basic earnings per share 16(0.77)(0.89)Diluted earnings per share 16(0.77)(0.89)The above Con

163、solidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes.Consolidated Statement of Financial Position As at 30 June 2016 23 2016 2015 Notes$CURRENT ASSETS Cash and cash equivalents 7 4,745,969 4,441,226 Trade and other receivables

164、 8 4,355,987 4,430,402 Total current assets 9,101,956 8,871,628 NON-CURRENT ASSETS Property,plant&equipment 9 65,518 74,296 Deferred tax assets 5 39,677 39,677 Intangible assets 10 26,759,567 30,289,099 Total non-current assets 26,864,762 30,403,072 Total assets 35,966,718 39,274,700 CURRENT LIABILI

165、TIES Trade and other payables 11 2,976,527 2,853,010 Other liabilities 12 557,878 683,148 Provisions 13 457,522 507,747 Total current liabilities 3,991,927 4,043,905 NON-CURRENT LIABILITIES Provisions 13 315,587 242,671 Deferred tax liabilities 5 39,677 39,677 Total non-current liabilities 355,264 2

166、82,348 Total liabilities 4,347,191 4,326,253 NET ASSETS 31,619,527 34,948,447 EQUITY Issued capital 14 120,693,650 115,100,833 Reserves 15 404,736 1,187,988 Accumulated losses (89,478,859)(81,340,374)TOTAL EQUITY 31,619,527 34,948,447 The above Consolidated Statement of Financial Position should be

167、read in conjunction with the accompanying notes.Consolidated Statement of Changes in Equity For the year ended 30 June 2016 24 2016 Notes Issued Capital$Reserves$Accumulated Losses$Total Equity$Balance at 1 July 2015 115,100,833 1,187,988(81,340,374)34,948,447 Movement in foreign exchange translatio

168、n reserve 15-(10,739)-(10,739)Other comprehensive income -(10,739)-(10,739)Loss attributable to members of the company -(8,138,485)(8,138,485)Total comprehensive income -(10,739)(8,138,485)(8,149,224)Transactions with equity holders in their capacity as equity holders Contributions of equity,net of

169、transaction costs 14 4,382,380-4,382,380 Reclassification of vested ESOP 15 1,210,437(1,212,651)-(2,214)Increase in employees share based payments reserve 15-440,138-440,138 5,592,817(772,513)-4,820,304 Balance 30 June 2016 120,693,650 404,736(89,478,859)31,619,527 2015 Notes Issued Capital$Reserves

170、$Accumulated Losses$Total Equity$Balance at 1 July 2014 108,515,858 1,242,375(72,565,017)37,193,216 Movement in foreign exchange translation reserve 15-53,065-53,065 Decrease in available for sale investment reserve -Other comprehensive income -53,065-53,065 Loss attributable to members of the compa

171、ny -(9,205,521)(9,205,521)Total comprehensive income -53,065(9,205,521)(9,152,456)Transactions with equity holders in their capacity as equity holders Contributions of equity,net of transaction costs 14 6,204,881-6,204,881 Reclassification of lapsed options to retained earnings 15-(430,164)430,164-R

172、eclassification of vested ESOP 15 380,094(380,094)-Increase in employees share based payments reserve 15-702,806-702,806 6,584,975(107,452)430,164 6,907,687 Balance 30 June 2015 115,100,833 1,187,988(81,340,374)34,948,447 The above Consolidated Statement of Changes in Equity should be read in conjun

173、ction with the accompanying notes.Consolidated Statement of Cash Flow As at 30 June 2016 25 2016 2015 Notes$CASH FLOWS FROM OPERATING ACTIVITIES Receipts from trade and other debtors 11,327,511 8,278,552 Interest received 76,463 184,099 Receipt of R&D tax incentive and other Grants 511,425 436,152 P

174、ayments to trade creditors,other creditors and employees (14,685,066)(12,046,481)Income tax received/(paid)17,187(19,868)Interest paid (187)(8,130)Net cash outflows from operating activities 24(2,752,667)(3,175,676)CASH FLOWS FROM INVESTING ACTIVITIES Payments for property,plant and equipment (58,14

175、0)(40,786)Receipt of R&D tax incentive relating to capitalised assets 1,716,792 1,741,136 Payments for intangible assets (2,911,523)(3,638,707)Net cash outflows from investing activities (1,252,871)(1,938,357)CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of shares 4,600,000 6,523,200 Paym

176、ents of equity raising costs (237,135)(370,441)Net cash inflows from financing activities 4,362,865 6,152,759 Net increase/(decrease)in cash held 357,327 1,038,726 Cash at the beginning of the financial year 4,441,226 3,354,051 Effects of exchange rate changes on cash (52,584)48,449 CASH AT THE END

177、OF THE FINANCIAL YEAR 7 4,745,969 4,441,226 The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.Notes to the Financial Statement For the year ended 30 June 2016 26 Summary of Significant Accounting Policies The financial report covers Adslot Ltd(t

178、he Company)and controlled entities(the Group).Adslot Ltd is a listed public company,incorporated and domiciled in Australia.The financial report is for the financial year ended 30 June 2016 and is presented in Australian dollars.The principal accounting policies adopted in the preparation of these c

179、onsolidated financial statements are summarised below.These policies have been consistently applied to all the years presented,unless otherwise stated.Basis of preparation This general purpose financial report has been prepared in accordance with Australian Accounting Standards,other authoritative p

180、ronouncements of the Australian Accounting Standards Board(AASB)and the Corporations Act 2001.Compliance with IFRS Australian Accounting Standards include International Financial Reporting Standards as adopted in Australia.Compliance with Australian Accounting Standards ensures that the financial st

181、atements and notes of Adslot Ltd comply with International Financial Reporting Standards(IFRS)as issued by the International Accounting Standards Board(IASB).Adslot Ltd is a for-profit entity for the purpose of preparing the financial statements.Historical cost convention These financial statements

182、have been prepared under the historical cost convention as modified by the revaluation of available-for-sale financial assets.Under the historical cost convention assets are recorded at the amount of cash or cash equivalents paid or the fair value of the consideration given to acquire them at the ti

183、me of their acquisition.Liabilities are recorded at the amount of proceeds received in exchange for the obligation,or in some circumstances at the amounts of cash or cash equivalents expected to be paid to satisfy the liability in the normal course of business.Critical accounting estimates The prepa

184、ration of financial statements in conformity with Australian Accounting Standards requires the use of certain critical accounting estimates.It also requires management to exercise its judgement in the process of applying the Groups accounting policies.The estimates and associated assumptions are bas

185、ed on historical experience and other factors that are considered relevant.Actual results may differ from these estimates.The estimates and associated assumptions are reviewed on an ongoing basis.Revisions to accounting estimates are recognised in the period in which the estimate is revised if the r

186、evision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.Going concern Management continue to invest resources to successfully launch the Adslot products in multiple geographies.The Group has incurred net cash outflo

187、ws from operations of$2.7m for the year,and management anticipate incurring further net cash outflows from operations until such time as sufficient revenue growth is achieved.The ability of the Group to continue as a going concern is dependent upon revenue growth and levels of cash reserves.During F

188、Y 2016 the Company increased the earnings from its Trading Technology revenues which is represented by the Adslot and Symphony products.During FY 2017 the Company expects to further increase revenues from these two products on a stand-alone basis and also from the integration of these two products.D

189、espite this,the Company anticipates net operating cash flows from operations will continue to be negative in FY 2017.However the Directors believe the Group can continue to pay its debts as and when the fall due for the following reasons:The Group had a cash position as at 30 June 2016 of$4.7m;The G

190、roup expects to receive$2.3m in grants for Research&Development relating to prior year expenditure within the next four months;The Webfirm division is expected to make continued positive net cash flows from its operations during FY 2017;The Group has successfully raised capital in the past;and Manag

191、ement could reduce the level of resources dedicated to expanding the business if so required.Accordingly the Directors believe there exists a reasonable expectation that the Group can continue to pay its debts as and when they fall due,and the financial report has been prepared on a going concern ba

192、sis.27 Principles of consolidation Subsidiaries The consolidated financial statements comprise those of the Company,and the entities it controlled at the end of,or during,the financial year.The Company controls a subsidiary if it is exposed,or has rights,to variable returns from its involvement with

193、 the subsidiary and has the ability to affect those returns through its power over the subsidiary.All intra-group transactions,balances,income and expenses between entities in the Group included in the financial statements have been eliminated in full.Where unrealised losses on intra-group asset sal

194、es are reversed on consolidation,the underlying asset is also tested for impairment from a group perspective.Where an entity either began or ceased to be controlled during the year,the results are included only from the date control commenced or up to the date control ceased.The accounting policies

195、adopted in preparing the financial statements have been consistently applied by entities in the Group.Investments in subsidiaries are accounted for at cost less impairment losses in the parent entity information in Note 26.Business combinations Acquisition of subsidiaries and businesses are accounte

196、d for using the acquisition method.The consideration for each acquisition is measured at the aggregate of the fair values(at the date of exchange)of assets given,liabilities incurred or assumed and equity instruments issued by the Group in exchange for control of the acquiree.Acquisition related cos

197、ts are recognised in profit or loss as incurred.The Group recognises identifiable assets and liabilities assumed in the business combination regardless of whether they have been previously recognised in the acquirees financial statements prior to acquisition.Assets acquired and liabilities assumed a

198、re generally measured at their acquisition date fair values.Goodwill is stated after separate recognition of identifiable intangible assets calculated as the excess of the sum of the fair value of the consideration transferred over the acquisition date fair value of identifiable net assets.If the id

199、entifiable net assets exceed the consideration transferred,the excess amount is recognised in profit or loss immediately.Any deferred settlement of cash consideration is discounted to its present value as at the date of acquisition.The discount rate used is the incremental borrowing rate that the Gr

200、oup can obtain from an independent financier under comparable terms and conditions.Foreign Currency Exchange In preparing the financial statements of the individual entities,transactions in currencies other than the entitys functional currency are recorded at the rates of exchange prevailing on the

201、dates of the transactions.At each reporting date,monetary items denominated in foreign currencies are retranslated at the rates prevailing at the reporting date.Exchange differences are recognised in the Consolidated Statement of Profit or Loss and Other Comprehensive Income in the period in which t

202、hey arise.On consolidation,the assets and liabilities of the Groups foreign operations are translated into Australian dollars at exchange rates prevailing on the reporting date.Income and expense items are translated at the average exchange rates for the period.Exchange differences arising,if any,ar

203、e charged/credited to other comprehensive income and recognised in the Groups foreign currency translation reserve in equity.On disposal of a foreign operation the cumulative translation difference recognised in equity are reclassified to profit or loss and recognised as part of the gain or loss on

204、disposal.Cash and cash equivalents For the purposes of the Statement of Cash Flows,cash includes cash on hand and deposits at call which are readily convertible to cash and are not subject to significant risk of changes in value,net of bank overdrafts.Publisher Account Cash represents share of adver

205、tising revenue held before release to Adslot Publishers.Notes to the Financial Statements(Continued)28 1.Summary of Significant Accounting Policies(Continued)Property,plant and equipment Property,plant and equipment are stated at cost less accumulated depreciation and any impairment in value.The car

206、rying values of property,plant and equipment are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.Leasehold improvements are depreciated using the straight-line method over the remaining period of the underlying lease.Depreciation is

207、calculated on a straight line basis for all plant and equipment.The estimated useful lives,residual values and depreciation method are reviewed at the end of each annual reporting period,with the effect of any changes recognised on a prospective basis.The gain or loss arising on disposal or retireme

208、nt of an item of property,plant and equipment is determined as the difference between the sales proceeds and the carrying amount of asset and is recognised in profit or loss.The following depreciation rates are used for each class of depreciable asset:Computer Equipment 33 40%per annum Plant&Equipme

209、nt 20 33%per annum Leasehold Improvements 20 80%per annum Receivables Trade receivables are recognised initially at fair value and thereafter are measured at amortised cost,less provision for impairment.They are non-derivative financial assets with fixed or determinable amounts not quoted in an acti

210、ve market.Trade accounts receivable are generally settled between 14 and 60 days and carried at amounts recoverable.Collectability of trade receivables is reviewed on an ongoing basis.Debts that are known to be uncollectible are written off.A provision for doubtful receivables is established when th

211、ere is objective evidence that the Group will not be able to collect all amounts due according to the original terms of the receivables.The amount of the provision is the difference between the assets carrying amount and the present value of estimated future cash flows,discounted at the effective in

212、terest rate.The amount of the provision is recognised in profit or loss.Subsequent recoveries of amounts previously written off are credited against the allowance account.Investments and other financial assets Financial assets are recognised when the group entity becomes a party to the contractual p

213、rovisions of the instrument.At initial recognition,the group measures a financial asset at its fair value plus,in the case of a financial asset not at fair value through profit or loss,transaction costs that are directly attributable to the acquisition of the financial asset.Transaction costs of fin

214、ancial assets carried at fair value through profit or loss are expensed through profit or loss.Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market.Loans and receivables are measured subsequent to recognition at amortis

215、ed cost using the effective interest method,less provision for impairment.Discounting is omitted where the effect of discounting is immaterial.Available-for-sale financial assets are non-derivative financial assets that are either designated to this category or do not qualify for inclusion in any ot

216、her category of financial assets.Available-for-sale financial assets are measured at fair value.Gains or losses arising from changes in available-for-sale financial assets are presented in other comprehensive income in the period in which they arise.Trade and other creditors financial liabilities Tr

217、ade accounts payable and other creditors represent liabilities for goods and services provided to the Group prior to the end of the financial year and which are unpaid.The amounts are unsecured and are usually paid within 45 days of recognition.Financial liabilities are measured subsequently at amor

218、tised cost using the effective interest method.29 Borrowings Borrowings are initially recognised at fair value(less transaction costs)and subsequently measured at amortised cost.Any difference between the proceeds and the redemption amount is recognised in profit or loss over the period of the borro

219、wing using the effective interest method.Finance costs Finance costs are recognised as expenses in the period in which they are incurred except where they are incurred in the construction of a qualifying asset in which case the finance costs are capitalised as part of the asset.Income tax The income

220、 tax expense or revenue for the period is the tax payable on the current periods taxable income based on the national income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences between the tax bases of assets and liabilities

221、 and their carrying amounts in the financial statements,and to unused tax losses.Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to apply when the assets are recovered or liabilities are settled,based on those tax rates which are enacted or subs

222、tantively enacted for each jurisdiction.The relevant tax rates are applied to the cumulative amounts of deductible and taxable temporary differences to measure the deferred tax asset or liability.An exception is made for certain temporary differences arising from the initial recognition of an asset

223、or a liability.No deferred tax asset or liability is recognised in relation to these temporary differences if they arose in a transaction,other than a business combination,that at the time of the transaction did not affect either accounting profit or taxable profit or loss.Deferred tax assets are re

224、cognised 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.Deferred tax liabilities are always provided for in full.Deferred tax liabilities and assets are not recognised f

225、or temporary differences between the carrying amount and tax bases of investments in controlled entities where the parent entity is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future.Current and d

226、eferred tax balances attributable to amounts recognised directly in equity are also recognised directly in equity.Tax consolidation legislation Adslot Ltd and its wholly-owned Australian controlled entities have implemented the tax consolidation legislation.The head entity,Adslot Ltd,and the control

227、led entities in the tax consolidated group account for their own current and deferred tax amounts.These tax amounts are measured as if each entity in the tax consolidated group continues to be a stand-alone taxpayer in its own right.To the extent that it is not probable that taxable profit will be a

228、vailable in the foreseeable future against which the unused tax losses or unused tax credits can be utilised,the deferred tax assets of its own and its controlled entities are not recognised by Adslot Ltd.Employee benefits Wages and salaries,annual leave and sick leave Short-term employee benefits a

229、re current liabilities included in employee benefits,measured at the undiscounted amount that the Group expects to pay as a result of the unused entitlement.Annual leave is included in provisions.The Group does not discount the leave liability calculations as the Group expects all annual leave for a

230、ll employees to be used wholly within 12 months of the end of reporting period.Long service leave The liability for long service leave expected to be settled within 12 months of the reporting date is recognised in provisions for employee entitlements and is measured at the amount expected to be paid

231、 when the liabilities are settled.The liability for long service leave expected to be settled more than 12 months from the reporting date,is recognised in the non-current provision for employee benefits and is measured as the present value of the estimated future cash outflows to be made by the Grou

232、p in respect of services provided by employees up to reporting date.Notes to the Financial Statements(Continued)30 1.Summary of Significant Accounting Policies(Continued)Share-based compensation benefits Equity-settled share-based payments with employees and others providing similar services are mea

233、sured at the fair value of the equity instrument at the grant date.The fair value at grant date is determined using a binomial 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,the expected price volatility of

234、the underlying share,the expected dividend yield and the risk-free interest rate for the term of the option.The fair value determined at the grant date of the equity-settled share-based payments is recognised as an expense,with a corresponding increase in equity(share-based payments reserve)on a str

235、aight line basis over the vesting period.Upon the exercise of options,the balance of the share-based payments reserve relating to those options is transferred to share capital while the proceeds received,net of any directly attributable transaction costs,are credited to share capital.Intangible Asse

236、ts Goodwill Goodwill arising in a business combination is recognised as an asset at the date that control is acquired(acquisition date).Goodwill is measured as the excess of the fair value of consideration paid over the fair value of the identifiable net assets of the entity or operations acquired.G

237、oodwill acquired in business combinations is not amortised.Instead,goodwill is tested for impairment annually,being allocated to the cash flows of the relevant cash generating unit and is carried at cost less accumulated impairment losses.An impairment loss for goodwill is recognised immediately in

238、profit or loss and is not reversed in a subsequent period.Research&development expenditure Research costs are expensed as incurred.An intangible asset arising from development expenditure on an internal project is recognised only when the Group can demonstrate the technical feasibility of completing

239、 the intangible asset so that it will be available for use or sale,its intention to complete and its ability to use or sell the asset,how the asset will generate future economic benefits,the availability of resources to complete the development and the ability to measure reliably the expenditure att

240、ributable to the intangible asset during its development.Following the initial recognition of the development expenditure,the cost model is applied requiring the assets to be carried at cost less any accumulated amortisation and accumulated impairment losses.Any expenditure so capitalised is amortis

241、ed over the period of expected benefits from the related project.The carrying value of an intangible asset arising from development costs is tested for impairment annually when the asset is not yet available for use or more frequently when an indicator of impairment arises during the reporting perio

242、d.Intellectual property The intellectual property relates to the platform technology,branding and domains acquired as a result of the acquisition of Adslot,QDC IP Technology and Facilitate Digital businesses.Where the useful life is assessed as indefinite,assets are not amortised and the carrying va

243、lue is tested for impairment annually or more frequently if events or changes in circumstances indicate impairment.It is carried at cost less impairment losses.For those assets assessed as having a finite life,they are amortised on a straight-line basis over the estimated useful life of the asset.Th

244、e expected accounting useful life of intellectual property relating to the Adslot,QDC IP Technology and Facilitate Digital business is 4 to 5 years.Domain name Acquired domain names are accounted for at cost,useful life is assessed as indefinite and the assets are not amortised.The carrying value is

245、 tested for impairment annually or more frequently if events or changes in circumstances indicate impairment.They are carried at cost less impairment losses.Software Software represents internally developed software platforms capitalised according to accounting standards.Software is assessed as havi

246、ng a finite life and is amortised on a straight-line basis over the estimated useful life of the asset.The expected accounting useful life of software is 5 years.The carrying value of the software is tested for impairment when an indicator of impairment arises during the reporting period.31 Leased a

247、ssets Leases of assets under which the Group assumes substantially all the risks and benefits of ownership are classified as finance leases.This is distinct from operating leases under which the lessor effectively retains substantially all such risks and benefits.Property,plant and equipment acquire

248、d by finance leases are capitalised at the present value of the minimum lease payments as a finance lease asset and as a corresponding lease liability from date of inception of the lease.Lease assets are amortised over the period the entity is expected to benefit from the use of the assets or the te

249、rm of the lease,whichever is shorter.Finance lease liabilities are reduced by the component of principal repaid.Lease payments are allocated between the principal component of the liability and interest expense.Operating lease payments are charged to statement of profit or loss and other comprehensi

250、ve income on a straight-line basis over the period of the lease term.Associated costs such as maintenance and insurance are expensed as incurred.Goods and services tax Revenue,expenses and assets are recognised net of the amount of goods and services tax(GST),except:i.Where the amount of GST incurre

251、d is not recoverable from the taxation authority,it is recognised as part of the cost of acquisition of an asset or as part of an item of expense;or ii.For receivables and payables which are recognised inclusive of GST.The net amount of GST recoverable from,or payable to,the taxation authority is in

252、cluded as part of receivables or payables.Revenue recognition Revenue is measured at the fair value of the consideration received or receivable.Amounts disclosed as revenue are net of returns,allowances,duties and taxes paid.Revenue is recognised for the major business activities as follows:Renderin

253、g of services Service revenue is recognised on an accruals basis as and when the service has been passed onto the customer.Website development revenue is recorded based on project delivery.All projects are assigned percentages of project completion(based on actual work in progress)and all website de

254、velopment revenue applicable to percentage of incomplete work is recorded as unearned revenue.Website hosting,SSL certificate and domain name registration revenue is recorded over a one year duration.While 30%of search engine optimisation renewal revenue is recorded as earned in first month of renew

255、al contract,the remaining 70%revenue is recognised over a one year duration.Prepaid revenue calculated in this regard is excluded from revenue and is being treated as unearned revenue in the Consolidated Statement of Financial Position.Adslot Publisher revenue is accounted for in accordance with AAS

256、B 118 Revenue such that only the portion of the media campaign that is retained by Adslot for their services is recorded as revenue.Where underlying campaigns selected by advertisers are served over a period a time,the portion that extends beyond the reporting period is not taken up as revenue.Where

257、 the funds for these campaigns are prepaid by advertisers those amounts are treated as unearned revenue in the Consolidated Statement of Financial Position.Funds collected from advertisers and due to publisher clients are separated from company funds and are disclosed in the accounts as“Cash held on

258、 behalf of Publishers”and“Publisher Creditors”.Interest revenue Interest revenue is recognised when it is probable that the economic benefits will flow to the Group and the amount can be measured reliably,taking into account the effective yield on the financial asset.Government grants Government gra

259、nts are recognised at fair value where there is reasonable assurance that the grant will be received and all grant conditions will be met.Grants relating to expense items are recognised as income over the periods necessary to match the grant to the costs they are compensating.Grants relating to asse

260、ts are credited to deferred income and are amortised on a straight line basis over the expected lives of the assets.Notes to the Financial Statements(Continued)32 1.Summary of Significant Accounting Policies(Continued)Sale of non-current assets The net gain from the sale of non-current asset sales i

261、s recognised as income at the date control of the asset passes to the buyer,usually when the signed contract of sale becomes unconditional.Leasehold improvements The cost of improvements to leasehold properties is amortised over the unexpired period of the lease or the estimated useful life of the i

262、mprovement to the Group,whichever is the shorter.Earnings per share Basic earnings per share Basic earnings per share for continuing operations and total operations attributable to members of the Company are determined by dividing net profit after income tax from continuing operations and the net pr

263、ofit attributable to members of the Company respectively,excluding any costs of servicing equity other than ordinary shares,by the weighted average number of ordinary shares outstanding during the financial period.The number of shares used in the calculation at any time during the period is based on

264、 the physical number of shares issued.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 sha

265、res and the weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares.Dividends Provision is made for the amount of any dividend determined or recommended by the directors on or before the end of the financial year but not di

266、stributed at reporting date.Impairment of assets Goodwill and 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 assets are re

267、viewed 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 assets carrying amount exceeds its recoverable amount.The recoverable amount is the higher of an assets fair value l

268、ess costs to sell and value in use.For the purposes of assessing impairment,assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets(cash-generating units).Non-financial as

269、sets other than goodwill that suffered impairment are reviewed for possible reversal of the impairment at each reporting date.Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.The chief operating decisi

270、on maker has been identified as the Chief Executive Officer.Each of the operating segments is managed separately as each of these service lines requires different technologies,service different clients and sells different products.All inter-segment transactions are carried out at arms length prices.

271、The Group reports its segments based on geographical locations:APAC Australia,New Zealand and Asia;EMEA Europe,the Middle East and Africa;and The Americas North,Central and South America.33 Critical accounting judgements and key sources of estimation uncertainty Critical judgements in applying the e

272、ntitys accounting policies The following are the critical judgements(apart from those involving estimations,which are dealt with below),that management has made in the process of applying the Groups accounting policies and that have the most significant effect on the amounts recognised in the financ

273、ial statements:Revenue recognition In web development and web hosting business operations,management assesses stage of completion of each project and recognises revenue in the period in which development work is undertaken.In making its judgement,management considered the standard duration of such c

274、ontracts,stage of progress in contracts and commencement date of such contracts.Accordingly,management has deferred recognising some web development and web hosting revenue of an estimated value of services to be rendered in the future.Key sources of estimation uncertainty The following are the key

275、assumptions concerning the future and other key estimation uncertainty at the reporting date,that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.Impairment of goodwill and intangible assets Determining whether

276、 goodwill and intangible assets are impaired requires an estimation of the value in use of the cash-generating units to which goodwill and intangible assets have been allocated.The value in use calculation requires the entity to estimate the future cash flows expected to arise from the cash-generati

277、ng unit and a suitable discount rate in order to calculate the present value.The future cash flows included in the assessments are predicated largely on:the adoption of the integrated Adslot-Symphony Platform;the continued adoption of the Adslot Marketplace product;and the growth of Symphony.In the

278、event that these products do not generate revenues as planned an impairment of the related intangible assets may result.The carrying amount of goodwill and intangible assets at the reporting date was$26,759,567(2015:$30,289,099)and there were no impairment losses(2015:nil)recognised during the curre

279、nt financial year.Refer to Note 10 for further details.Capitalisation of internally developed software Distinguishing the research and development phases of software projects and determining whether the recognition requirements for the capitalisation of development costs are met,requires judgement.A

280、fter capitalisation,management monitors whether the recognition requirements continue to be met and whether there are any indicators that capitalised costs may be impaired.The capitalised internally developed software amount for the year was$1,336,540(2015:$2,001,289).Share based payments The calcul

281、ation of the fair value of options issued requires significant estimates to be made in regards to several variables such as volatility and the probability of options reaching their vesting period.The estimations made are subject to variability that may alter the overall fair value determined.The sha

282、re based payment expense for the year was$440,138(2015:$702,806).Unrecognised deferred tax assets As disclosed in Note 5,the Group recognises deferred tax assets relating to temporary differences,capital losses or operating losses when it is probable that they will be able to be utilised in future r

283、eporting periods.Due to the continuing operating losses,the Directors have determined it not appropriate to recognise deferred tax assets until a point in time where it is probable that future taxable income is going to be available to utilise the assets.The tax benefit of deferred tax assets not re

284、cognised is$9,703,919(2015:$8,635,840).Notes to the Financial Statements(Continued)34 1.Summary of Significant Accounting Policies(Continued)Research and development tax concessions A receivable of$2,317,658(2015:$2,184,913)has been recognised in relation to a research and development tax concession

285、 for the 2016 financial year.The actual claim is yet to be submitted with the Australian Tax Office and therefore there remains some uncertainty in regards to the quantum of the concession to be received.The financial statements reflect the Directors estimate of the receivable after taking into acco

286、unt the likelihood of each component of the claim being received.New standards and interpretations issued but not effective The following new or amendments to existing standards have been published and are mandatory for accounting periods beginning on or after 1 July 2018 or later periods,but have n

287、ot been adopted.AASB 9 Financial Instruments was issued and introduces changes in the classification and measurement of financial assets and financial liabilities,impairment of financial assets and new rules for hedge accounting.This standard becomes mandatory for the year ending 30 June 2019.The po

288、tential effects on adoption of the standard are currently being assessed.The group has not yet completed its assessment of this new standard however based on the financial instruments held at balance date,this standard is not expected to have a material impact upon initial adoption.AASB 15 Revenue f

289、rom Contracts with Customers establishes a comprehensive framework for determining whether,how much and when revenue is recognised.This standard becomes mandatory for the year ending 30 June 2019.The potential effects on adoption of the standard are currently being assessed.This new standard may hav

290、e a small impact on the financial statements on adoption however the group has not yet completed its assessment of this standard.AASB 16 Leases was issued and introduced changes to lessee accounting.It requires recognition of lease liabilities and assets other than short-term leases or leases of low

291、-value assets on statement of financial position.This will replace the operating/finance lease distinction and accounting requirements prescribed in AASB 117 Leases.This standard becomes mandatory for the year ending 30 June 2020.This new standard may have a material impact on the financial statemen

292、ts on adoption based on the contracts expected to be in place at that time however the group has not yet completed its assessment of this standard.AASB 9,AASB 15 and AASB 16 are available for early adoption but have not been applied in this financial report.35 Segment Information 2016 APAC EMEA The

293、Americas Total Operating segments Revenue for services rendered(i)6,489,675 640,802 498,869 7,629,346 Segment result from continuing operations(4,972,044)(279,866)(1,017,005)(6,268,915)Depreciation included in segment result(Note 9)59,441 1,817 3,627 64,885 Amortisation included in segment result(No

294、te 10)4,866,072-4,866,072 Additions to non-current assets(PP&E)(Note 9)51,854 1,766 4,906 58,526 Impairment of intangibles-Statement of Financial Position Segment assets 37,616,620 512,104 391,113 38,519,837 Segment liabilities(16,037,783)(103,966)(49,610)(16,191,359)2015 APAC EMEA The Americas Tota

295、l Operating segments Revenue for services rendered(i)5,533,327 246,101 497,309 6,276,737 Segment result from continuing operations(5,303,162)(694,383)(835,464)(6,833,009)Depreciation included in segment result(Note 9)71,494 3,237 3,396 78,127 Amortisation included in segment result(Note 10)5,653,652

296、-5,653,652 Additions to non-current assets(PP&E)(Note 9)47,810 1,754 2,575 52,139 Impairment of intangibles-Statement of Financial Position Segment assets 41,329,869 161,477 138,660 41,630,006 Segment liabilities(15,603,752)(182,714)(191,365)(15,977,831)Segment revenue reconciles to total revenue fr

297、om continuing operations as follows:Revenue 2016 2015$Total segment revenue 7,629,346 6,276,737 Head office revenue 30,600 23,755 Interest revenue 75,332 195,104 Intersegment eliminations-(284)Total revenue from continuing operations 7,735,278 6,495,312(i)Refer to Note 3 for a description Revenue.No

298、tes to the Financial Statements(Continued)36 2.Segment Information(Continued)A reconciliation from segment result to operating profit before income tax is provided as follows:Segment Result 2016 2015$Total segment result(6,268,915)(6,833,009)Interest revenue 75,332 195,104 Other revenue 778,504 680,

299、182 Share option expenses(440,138)(702,806)Gain/(Loss)on foreign exchange 35,486 60,352 Income tax benefit/(expense)(22,139)(21,159)Loss on write off of asset(1,624)-Other head office income/(expenses)not allocated in segment result(2,294,991)(2,584,185)Loss before income tax from continuing operati

300、ons(8,138,485)(9,205,521)Reportable segment assets are reconciled to total assets as follows:Segment assets 2016 2015$Total segment assets 38,519,837 41,630,006 Head office assets 47,795,613 49,019,570 Intersegment eliminations(50,348,732)(51,374,876)Total assets as per the statement of financial po

301、sition 35,966,718 39,274,700 Reportable segment liabilities are reconciled to total liabilities as follows:Segment liabilities 2016 2015$Total segment liabilities(16,191,359)(15,977,831)Head office liabilities(526,358)(718,948)Intersegment eliminations 12,370,526 12,370,526 Total liabilities as per

302、the statement of financial position(4,347,191)(4,326,253)The Companys Total Revenue and Other Income(Note 3)and its non-current assets(other than financial instruments)are divided into the following geographical areas:20162015$Revenue Non-Current Assets Revenue Non-Current Assets Australia(Domicile)

303、6,034,933 26,810,189 5,114,063 30,349,986 New Zealand 576,596 2,346 693,217 1,018 USA 498,869 4,739 497,309 2,723 Other countries 1,403,384 47,488 870,905 49,345 Total 8,513,782 26,864,762 7,175,494 30,403,072 Revenues from external customers in the Groups domicile,Australia,as well as its major mar

304、kets,New Zealand and the USA,have been identified on the basis of the customers geographical location.Non-current assets are allocated based on their physical location.37 Notes to and forming part of the segment information Business segments The Group reports its segments based on geographical locat

305、ions:APAC Australia,New Zealand and Asia;EMEA Europe,the Middle East and Africa;and The Americas North,Central and South America.Accounting policies The accounting policies of the reportable segments are the same as the Groups accounting policies described in Note 1.Segment revenues,expenses,assets

306、and liabilities are those that are directly attributable to a segment and the relevant portion that can be allocated to the segment on a reasonable basis.Segment profit represents the profit earned by each segment without investment revenue,finance costs and income tax expense.This is the measure re

307、ported to the chief operating decision maker for the purposes of resource allocation and assessment of segment performance.Segment assets include all assets used by a segment and consist primarily of operating cash,receivables,capitalised R&D and other intangible assets,net of related provisions but

308、 do not include non-current inter-entity assets and liabilities which are considered quasi-equity in substance.Segment liabilities consist primarily of trade and other creditors,employee benefits and sundry provisions and accruals.Segment assets and liabilities do not include income taxes.Inter-segm

309、ent transfers Segment revenue reported above represents revenue generated from external customers.There were no Inter segment revenue transfers or expenses to be eliminated on consolidation.In the prior year there was$284 of Inter segment revenue.Major customers The Group provides services to and de

310、rives revenue from a number of customers across all the divisions.The Group had certain customers whose revenue individually represented 10%or more of the Companys total revenue.For the year to 30 June 2016,one customer accounted for 10%of revenue.There were no customers representing 10%or more reve

311、nue for the year to 30 June 2015.Notes to the Financial Statements(Continued)38 Revenue and Other Income 2016 2015$Revenue Revenue from Trading Technology 4,227,677 2,652,086 Revenue from Services 2,532,188 2,396,948 Revenue from Adserving 900,081 1,251,174 Total revenue for services rendered 7,659,

312、946 6,300,208 Interest income 75,332 195,104 Total revenue from continuing operations 7,735,278 6,495,312 Other income Grant income 778,504 680,182 778,504 680,182 Total revenue and other income 8,513,782 7,175,494 Revenue derived from the three product lines are described as follows:Trading Technol

313、ogy Comprises Adslot,a leading global media trading technology,and Symphony,market-leading workflow automation technology,purpose built for digital media agencies.Services Comprising marketing services that are provided by the companys Webfirm division to SME clients and project-based customisation

314、of Trading Technology.Adserving Technology that enables advertisers to deliver and measure the performance of online display advertising(including impressions,clicks and online sales).39 2016 2015 Expenses$Loss before income tax includes the following specific expenses:Depreciation and amortisation

315、Amortisation Leasehold improvements 17,152 28,340 Amortisation Software development costs 4,866,072 5,653,652 Depreciation Plant&equipment 47,733 49,787 Total depreciation and amortisation 4,930,957 5,731,779 Other charges against assets Impairment/(recovery)of trade receivables (28,240)(37,440)Capi

316、talised development wages(net of related grants)1,336,540 2,001,289 Development wages expensed in the period 2,181,628 1,637,418 Total Development wages 3,518,168 3,638,707 Rental expense operating leases 941,552 820,431 Defined contribution superannuation expense 622,406 601,939 Foreign currency(ga

317、in)/loss (35,486)(60,352)Notes to the Financial Statements(Continued)40 2016 2015 Income Tax Expense$a)Numerical reconciliation of income tax expense to prima facie tax benefit Loss before income tax (8,116,346)(9,184,362)Prima facie tax benefit on loss before income tax at 30%(2015:30%)(2,434,904)(

318、2,755,309)Tax effect of:Other non-allowable items 8,154 7,475 Share based expensed during year 132,041 210,842 Research&development tax concession 1,545,105 1,443,457 Income tax benefit attributable to entity (749,604)(1,093,535)Deferred tax income relating to utilisation of unused tax losses-Deferr

319、ed tax assets relating to tax losses not recognised 1,068,079 1,407,063 Other adjustments and net foreign exchange differences(296,336)(292,369)Income tax(benefit)/expense attributable to entity 22,139 21,159 b)Movement in deferred tax balances Balance at 30 June 2016 Balance at 1 July 2015 Recognis

320、ed in Profit&Loss Acquired in Business combination Net Deferred tax assets Deferred tax liabilities$Trade and other receivables(125,957)-(125,957)-(125,957)Property,plant and equipment 199-199-199 Intangible assets 165,435-165,435-165,435 Unused tax losses(39,677)-(39,677)(39,677)-Net tax(assets)/li

321、abilities -(39,677)39,677 Balance at 30 June 2015 Balance at 1 July 2014 Recognised in Profit&Loss Acquired in Business combination Net Deferred tax assets Deferred tax liabilities$Trade and other receivables(125,957)-(125,957)-(125,957)Property,plant and equipment 199-199-199 Intangible assets 165,

322、435-165,435-165,435 Unused tax losses(39,677)-(39,677)(39,677)-Net tax(assets)/liabilities -(39,677)39,677 41 c)Deferred tax assets not brought to account Deferred tax assets not brought to account,the benefits of which will only be realised if the conditions for deductibility set out on Note 1(k)oc

323、cur.2016 2015$Temporary differences (4,240,800)(5,119,749)Tax Losses:Operating losses 36,348,938 33,667,624 Capital losses 238,258 238,258 32,346,396 28,786,133 Potential tax benefit(30%)9,703,919 8,635,840 The Company and its wholly-owned Australian resident entities have formed a tax-consolidated

324、group and are therefore taxed as a single entity.The head entity within the tax-consolidated group is Adslot Ltd.Dividends The Company did not declare any dividends in the current year or prior year.There are no franking credits available to shareholders of the Company.Cash and Cash Equivalents 2016

325、 2015$Cash at bank and on hand 3,493,749 3,416,910 Publisher account 1,252,220 1,024,316 4,745,969 4,441,226 Included in the Cash at Bank is$365,877(2015:$393,400)of funds held on term deposit as guarantee for our corporate credit card facilities and for the benefit of landlords under office lease a

326、greements.Notes to the Financial Statements(Continued)42 Trade and Other Receivables 2016 2015 Current:$Trade debtors 1,915,712 2,261,222 Less:Allowance for impairment (161,683)(241,074)1,754,029 2,020,148 Other receivables 2,375,890 2,227,608 Prepayments 226,068 182,646 4,355,987 4,430,402 The aver

327、age age of the Companys trade receivables is 63 days(2015:57 days).(a)Ageing of past due but not impaired 2016 2015$0 30 days 75,994 107,949 31 60 days 29,976 382,112 61 90 days 4,032 86,493 Over 91 days 4,700 107,330 114,702 663,884 (b)Movement in the provision for impairment 2016 2015$Balance at b

328、eginning of the year 241,074 413,987 Impairment recognised during the year 12,369 20,294 Amounts written off as uncollectible (92,011)(118,408)Amounts recovered during the year (1,873)(116,161)Net foreign exchange differences 2,124 41,362 Balance at the end of the year 161,683 241,074 In determining

329、 the recoverability of a trade receivable,the Company considers any recent history of payments and the status of the projects to which the debt relates.No payment terms have been renegotiated.The concentration of credit risk is limited due to the customer base being large and unrelated.Accordingly,t

330、he Directors believe that there is no further provision required in excess of the allowance for impairment.Fair value of receivables Fair value of receivables at year end is measured to be the same as receivables net of the allowance for impairment.43 Non-Current Assets Property,Plant and Equipment

331、2016 2015$Leasehold improvements at cost 104,280 104,280 Less:Accumulated amortisation (104,172)(87,020)108 17,260 Plant and equipment at cost 152,970 148,841 Less:Accumulated depreciation (149,069)(129,223)3,901 19,618 Computer equipment at cost 332,767 326,045 Less:Accumulated depreciation (271,25

332、8)(288,627)61,509 37,418 Total carrying amount of property,plant and equipment 65,518 74,296 Reconciliations of the carrying amounts of each class of property,plant and equipment at the beginning and end of the current financial year are set out below:2016 Leasehold Plant and Computer Improvements E

333、quipment Equipment Total$Carrying amount at 1 July 2015 17,260 19,618 37,418 74,296 Additions -3,954 54,571 58,525 Disposals/Write Offs-(1,624)(1,624)Depreciation/amortisation expense(17,152)(19,671)(28,062)(64,885)Net foreign exchange differences-(794)(794)Carrying amount at 30 June 2016 108 3,901 61,509 65,518 2015 Leasehold Plant and Computer Improvements Equipment Equipment Total$Carrying amou