Medlab Clinical Limited (MDC) 2017年年度報告「ASX」.pdf

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1、MEDLAB CLINICAL LIMITED(ABN 51 169 149 071)ANNUAL REPORTFOR THE YEAR ENDED 30 JUNE 2017Copyright Medlab Clinical Ltd 2017INNOVATION-QUALITY-LIFE SCIENCESINNOVATION-QUALITY-LIFE SCIENCESRe-think,Re-invent Medicine.Making a positive impact for the global management ofpatients diagnosed with chronic di

2、seases.CONTENTSmedlab.coINNOVATION-QUALITY-LIFE SCIENCESChronic diseases are the leading cause of illness,disability and death in Australia,accounting for 90%of all deaths in 2011(AIHW 2011b).http:/www.aihw.gov.au/WorkArea/DownloadAsset.aspx?id=60129547726References:1.The High Price of Pain:The Econ

3、omic Impact of Persistent Pain in Australia,November 2007.MBF Foundation in collaboration with University of Sydney Pain Management Research Institute.2.Australian Bureau of Statistics.(2008).National Survey of Mental Health and Wellbeing:Summary of Results,2007.3.Beyond Blue:.au4.Fisch M.Cleeland C

4、 et al.Prospective,Observational Study of Pain and Analgesic Prescribing in Medical Oncology Outpatients With Breast,Colorectal,Lung,or Prostate Cancer,Journal of Clinical Oncology,Vol 30,Number 16,June 1 2012.5.van den Beuken-van Everdingen MHJ,de Rijke JM,Kessels AG,Schouten HC,van Kleef M,Patijn

5、J,2007.Prevalence of pain in patients with cancer:a systematic review of the past 40 years.Ann Oncol 18(9):1437-1449.Mental HealthApprox.3 million Australians are living with depression daily.And yet,only 35%of people with Anxiety or Depression access treatment65%35%2nd most common medicalcause of d

6、eath&disabilityIntractable Pain Statistics$34.3billionThe cost of chronic pain in Australia in 2007 is approx.$34.3 billionStatisticsshowcancer pain is under-treated33%in patients after curative treatmentin patients with metastaticor advanced stage disease64%in patients on anticancer treatment59%Nea

7、rly one of two patients with cancer pain is undertreated.Chairmans Letter4CEO Report5Directors Report9Auditors Independence Declaration18Financial Statements19Directors Declaration45Independent Auditors Report46Shareholder Information49Corporate Directory51 3 medlab.coINNOVATION-QUALITY-LIFE SCIENCE

8、S 4 CHAIRMANS LETTERDear Shareholder,On behalf of the Board of Medlab Clinical Limited(Medlab),I am pleased to present our 2017 Annual Report.In financial year 2017 we have progressed well with our key research programs,which in some cases are 12 to 18 monthsahead of schedule,confirming our potentia

9、l to produce positive commercial outcomes from our research.Our strategy is to use our considerable knowledge in the field of probiotics,together with our patented medicine deliverysystem,NanoCelle,to develop and prove concepts for medicines and nutritional products to treat chronic illnesses.The ch

10、ronic illness areas on which we are focused represent a large proportion of patient visits to doctors and also are agrowing and large part of rising health costs.Key areas of Medlabs work are:Pain management,with two clinical trials about to begin for our cannabis-based medicines,NanaBis andNanaBidi

11、al,with both to be administered by NanoCelle.Depression,where our probiotic,NRGBiotic,is being trialled in combination with anti-depressantmedications,with positive results leading to Phase II clinical trials.Obesity/diabetes,where our probiotic,T2Biotic,is bringing about weight management and reduc

12、tion ofincidence of diabetes.Medlabs point of difference is in submitting its research to clinical trials in major Australian institutions as a basis for broadeningcommercial potential in global markets.This creates a significant distinction in the area of medical cannabis where Medlabwould be able

13、to provide clinical data to back product claims.Medlabs strategy includes building sales of nutritional or nutraceutical products to contribute to cash flow.Sales haveappreciated at a good rate of growth from a low base and should increase further in financial year 2018 as our marketingagreement wit

14、h Heritage Brands begins to have an effect.Our shareholders have grown to over 1,700 and we thank all of you for your support.Michael HallChairmanmedlab.coINNOVATION-QUALITY-LIFE SCIENCES 5 CEO REPORTDear Shareholder,In the two years since listing on the ASX,Medlab has made considerable progress wit

15、h its aim of commercialising its research.Within this time frame,we have:two medicines in clinical trials,for depression and cholesterol managementtwo more about to start,using our two different cannabis-based medicinesseveral human trials completedEthics and TGA approvals for commencement of our ca

16、nnabis human trialstesting of wider application of our medicine delivery system,NanoCelle,under way24 nutritional products on the market6 to 8 more nutritional products in the immediate pipeline The trial about to begin at Royal North Shore Hospital in Sydney for NanaBis with seriously ill oncology

17、patients will be thefirst of its kind in the world.Nutritional sales have grown from a standing start and this year were double the previous year.We expect the rate of growthto continue and to be further assisted by the agreement with Heritage Brands which is expected to deliver a boost to sales int

18、he second half of financial year 2018.HIGHLIGHTS OF FY17HREC(Human Research Ethics Committee)approval for 2 cannabis trials;NanaBis(CBD/THC for advanced cancer pain)and NanaBidial(CBD for chemotherapy induced nausea and vomiting and seizures)COMPLETED.TGA clinical trial approval for Nanabis and Nana

19、Bidial COMPLETED.Commencement of Phase 2a Depression trials continuing prior work for stronger claims for NRGBiotic,a product already in market,as a therapeutic for patients prescribed an antidepressant.COMMENCED.Trial conclusion for human trials in collaboration with the Boden Institute for treatme

20、nt of pre-diabetic and type 2 diabetic Patients.Results showed significant,positive outcomes in prediabetes population for a product in manufacture and expected to be market ready within 3 months.The NanoCelle Atorvastatin program,NanoStat is proceeding as expected.Agreement with Heritage Brands sig

21、ned,to develop a market channel expansion for Medlab products under the Heritage label.GLOBAL RESEARCH OPPORTUNITIES/UPDATEMedlabs focus is still very much centered around developing novel therapeutics for the treatment of early and moderate stagechronic diseases.A video on Medlabs website explains

22、this context.Link to Chronic Diseases Video:https:/ is encouraging to report that some large multi-national pharmaceutical companies have expressed interest in our work andwe intend to pursue further discussion in the year ahead.Our next step is that we should see outcomes in several trial areas,esp

23、ecially with our two cannabis medicines.Both havepotential for a fast access to market on the back of positive clinical trials outcomes which would establish confidence withAustralian Regulatory and Medical stakeholders for appropriate continued usage.Medlabs research endeavors are progressing well

24、and on track with expectations.For an update on the progress of our research programmes,refer to the chart at https:/www.medlab.co/research.medlab.coINNOVATION-QUALITY-LIFE SCIENCES 6 CEO REPORT(cont.)GLOBAL NUTRACEUTICAL OPPORTUNITIESSales of nutritional products have been assisted by our dedicated

25、 sales team and their educational efforts which have resultedin stronger market positioning,practitioner prescriptions and patient requests for the brand.To date,we have some 1300 direct accounts in medical practices,pharmacies,and allied healthcare professionals.To support this sales effort,we have

26、 introduced a practitioner journal Efficacy,aimed at empowering practitioners with scientificand medical information suitable for their practices.Shareholders can receive a copy of the latest Efficacy by emailinghellomedlab.co and a link will be provided by return email.In coming months Medlab will

27、launch a number of clinical tools intended for practitioners supporting Medlab.Distribution agreements with the UAE and Indonesia are also under discussion.Medlabs agreement with Heritage Brands,announced in late June 2017,is progressing well and we expect to start the revenuepathway in the next few

28、 months,with a sales program commencing in early 2018.Of Medlabs 24 nutraceutical products currently on the market,the most prominent are:Multibiotic,Patent Pending,clinical trialledMg Optima RelaxNRGBiotic,Patented,clinical trialled and currently in Phase 2a studiesNanoCelle D3,Patent Pending,clini

29、cal trialledSB 5BAs a benefit to supporters of Medlab,we are introducing a Shareholder discount of 25%allowing you to order personal stockas required.If you are interested in this offer,please email investorsmedlab.co.For more information on the Medlab nutraceuticals visit https:/www.medlab.co/nutra

30、ceuticals/productsFINANCIAL RESULTSTotal revenue for the year ending 30 June 2017 rose 70%to$4,446,533 up from$2,620,118 for the year ending 30 June 2016.Sales from the nutraceutical business for the year ending 30 June 2017 rose by 118%to$3,272,926 from$1,502,003 for theyear ending 30 June 2016.Med

31、lab expects continuing sales growth of nutraceutical products from a combination of its current sales program,expansionof market coverage with assistance from Heritage Brands,with this expected to show effects from the second half of the 2018financial year,and possible outcomes from discussions rega

32、rding other potential trade agreements in the nutraceutical industry.medlab.coINNOVATION-QUALITY-LIFE SCIENCES 7 CEO REPORT(cont.)MARKET CONTEXTThere are several aspects of the markets within which Medlab is operating that illustrate commercial potential around Medlabswork,with some examples being:I

33、n pain management,research shows pain is generally undertreated and with health concerns about community over-reliance on opioids,a cannabis-based alternative with clinical trial evidence has global potentialSize of the statins market has been estimated at US$12 billion globally and with one-third o

34、f patients reporting unwanted side effects,a lower dose administration of statins with NanoStat would create market interestApproximately 350 million people worldwide,or 5%of the world population,suffer from depression,with depression by 2030 projected to be the highest level of disability of any ph

35、ysical or mental disorderOver 25 million people in the US have diabetes and 1.7 million in Australia,creating a range of health and social concerns requiring better disease management As we progress further with our clinical trials we expect industry interest in our work to increase.OUTLOOKMedlabs b

36、usiness model involves working to build nutraceutical revenue and seeking shorter time frames forcommericialisation of its research,with completion of Phase 2a trials our intended exit point.We expect to make further progress with these aims in financial year 2018 as we extend sales of nutraceutical

37、 products andprogress further with clinical trials.An advantage of our work with cannabis-based medicines is that clinical trials have short time frames and the communityneed for these medicines gives them good prospects for approval under the TGAs Special Access Scheme.While it is difficult in our

38、sector to be definite about time line and prospects,we are developing nutritional products andmedicines in areas of high need and demand which gives us confidence about the direction in which Medlab is heading.CONCLUSIONWe appreciate shareholder support and acknowledge that our progress is the outco

39、me of a great effort from the Medlab team,practitioners and the medical community.Sincerely,Sean HallFINANCIAL REPORTCONTENTSmedlab.coINNOVATION-QUALITY-LIFE SCIENCES 8 Directors Report9Auditors Independence Declaration18Statement of Profit and Loss and Other Comprehensive Income19Statement of Finan

40、cial Position20Statement of Changes in Equity21Statement of Cash Flows22Notes to the Financial Statements23Directors Declaration45Independent Auditors Report46Shareholder Information49Corporate Directory513Nutraceutical Sales up 118%3No of Shareholders up to over 1,700(just over 500 at IPO)3Share pr

41、ice up approx 300%since IPOmedlab.coINNOVATION-QUALITY-LIFE SCIENCES 9 DIRECTORS REPORTYour directors present their report on the consolidated entity consisting of Medlab Clinical Limited and its controlled entitiesat the end of,or during,the year ended 30 June 2017.DirectorsThe following persons we

42、re directors of the company during the year and up to the date of this report,unless otherwise stated:S.M.Hall M.J.Hall D.A.Townsend Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.Principal ActivitiesThe principal activities of

43、the consolidated group are:Sale of nutraceutical productsPharmaceutical researchNo significant changes in the nature of these activities occurred during the period.Review of OperationsThe loss of the consolidated group after providing for income tax and non-controlling interest amounted to$3,657,644

44、(2016:$3,493,083).At period end,the economic entity had total assets of$4,697,554(2016:$3,265,971)and total liabilities of$1,647,065(2016:$1,374,307).A more detailed operations review can be found in the CEO report.Significant Changes in the State of Affairs.No significant changes in the consolidate

45、d groups state of affairs occurred during the period.After Balance Date EventsNo matters or circumstances have arisen since 30 June 2017 which significantly affected or may significantly affect theoperations of the consolidated group,the results of those operations,or the state of affairs of the con

46、solidated group in futurefinancial years.medlab.coINNOVATION-QUALITY-LIFE SCIENCES 10 Information Relating to Directors and Company SecretaryName:Michael HallTitle:Non-Executive ChairmanQualifications:B.Com,CPAExperience:Michael has a long history in the management and building of successful nutriti

47、on companies.Michaels early career was in accounting,retailing and private banking.Other current directorships:NoneFormer directorships(last 3 years)NoneSpecial responsibilitiesMember of:Risk Management and Audit CommitteeNomination and Remuneration CommitteeInterest in shares:12,334,445 ordinary sh

48、aresInterest in options:3,500,000 unquoted optionsContractual right to shares:NoneName:Sean HallTitle:Managing Director and Chief Executive OfficerQualifications:B.A(Psych),MBA,MDExperience:Sean has over 20 years experience in the Australian Healthcare and food industries and early phase drug discov

49、ery in Australia and Asia.Sean is best known for building Australias leading practitioner brand,BioCeuticals.Sean is an active member of Medicines Australia,American Federation for Medical Research,American Academy of Anti-Ageing Medicine,Ausbiotech,a member of the Scientific Advisory Board for BITs

50、 Life Science China and a Board Member of the International Probiotics Association.Sean has completed Executive Education at Harvard Graduate School of Business and more recently continuing Medical Education through Harvard Medical School.Other current directorships:NoneFormer directorships(last 3 y

51、ears)NoneSpecial responsibilitiesMember of:Nomination and Remuneration CommitteeInterest in shares:55,755,555 ordinary sharesInterest in options:5,000,000 unquoted optionsContractual right to shares:NoneName:Drew TownsendTitle:Non-Executive DirectorQualifications:B.Com,CA,MAICDExperience:Drew is a s

52、enior partner in the chartered accounting firm of Hall Chadwick and has been a partner in this firm for over 25 years.He is an experienced chartered accountant and corporate advisor to numerous SMEs.Other current directorships:Non-Executive Chairman of Qantum Energy LimitedFormer directorships(last

53、3 years)NoneSpecial responsibilitiesChairman of:Risk Management and Audit CommitteeNomination and Remuneration CommitteeInterest in shares:16,055,553 ordinary sharesInterest in options:NoneContractual right to shares:NoneName:Alan DworkinTitle:Company SecretaryQualifications:B.Bus,CA,ACSA,GAICDExper

54、ience:Alan is a Chartered Accountant with over 18 years experience in tax,resources and nutraceutical sectors,including the last six years as CFO and Company Secretary of FIT-BioCeuticals Limited.medlab.coINNOVATION-QUALITY-LIFE SCIENCES 11 Meetings of directorsThe number of meetings of the companys

55、 Board of Directors(the Board)and of each Board committee held during the yearended 30 June 2017,and the number of meetings attended by each director were:Held:represents the number of meetings held during the time the director held office or was a member of the relevantcommittee.Future Developments

56、Likely developments in the operations of the consolidated group and the expected results of those operations in future financialyears have not been included in this report as the inclusion of such information is likely to result in unreasonable prejudice tothe consolidated group.Environmental Issues

57、The consolidated groups operations are not regulated by any significant environmental regulations under a law of theCommonwealth or of a State or Territory.Shares under OptionAt the date of this report,the unissued ordinary shares of Medlab Clinical Limited under option are as follows:Option holders

58、 do not have rights to participate in any issues of shares or other interests in the company or any or any otherentity.Michael HallDrew TownsendSean Hall10910NameAttendedNomination andRemuneration CommitteeRisk Management andAudit CommitteeHeldAttendedHeldAttendedHeld10101011111123-33-Full BoardNumb

59、er under option17 April 201410 July 20152 November 201530 June 201930 June 202030 June 2019$0.30$0.30$0.3010,000,0001,541,7251,000,000Grant dateDate of expiryExercise pricemedlab.coINNOVATION-QUALITY-LIFE SCIENCES 12 REMUNERATION REPORTThe remuneration report details the key management personnel rem

60、uneration arrangements for the consolidated entity,inaccordance with the requirements of the Corporations Act 2001 and its Regulations.Key management personnel are those persons having authority and responsibility for planning,directing and controlling theactivities of the entity,directly or indirec

61、tly,including all directors.The remuneration report is set out under the following main headings:Principles used to determine the nature and amount of remunerationDetails of remunerationService agreementsShare-based compensationPrinciples used to determine the nature and amount of remunerationThe ob

62、jective of the consolidated entitys executive reward framework is to ensure reward for performance is competitive andappropriate for the results delivered.The framework aligns executive reward with the achievement of strategic objectives andthe creation of value for shareholders,and conforms to the

63、market best practice for the delivery of reward.The Board ofDirectors(the Board)ensures that executive reward satisfies the following key criteria for good reward governance practices:Competitiveness and reasonablenessAcceptability to shareholdersPerformance linkage/alignment of executive compensati

64、onTransparencyThe Nomination and Remuneration Committee is responsible for determining and reviewing remuneration arrangements forits directors and executives.The performance of the consolidated entity depends on the quality of its directors and executives.The remuneration philosophy is to attract,m

65、otivate and retain high performance and high quality personnel.The Nomination and Remuneration Committee has structured an executive remuneration framework that is market competitiveand complementary to the reward strategy of the consolidated entity.Alignment to shareholders interests:Has economic p

66、rofit as a core component of plan designFocuses on sustained growth in shareholder wealth,consisting of dividends and growth in share price,and delivering constant or increasing return on assets as well as focusing the executive on key non-financial drivers of valueAttracts and retains high calibre

67、executivesAlignment to program participants interests:Rewards capability and experienceReflects competitive reward for contribution to growth in shareholder wealthProvides a clear structure for earning rewardsIn accordance with best practice corporate governance,the structure of non-executive direct

68、ors and executive remunerationsis separate.Non-executive directors remunerationFees and payments to non-executive directors reflect the demands and responsibilities of their role.Non-executive directorsfees and payments are reviewed annually by the Nomination and Remuneration Committee.The Nominatio

69、n and Remuneration Committee may,from time to time,receive advice from independent remuneration consultants to ensurenon-executive directors fees and payments are appropriate and in line with the market.The chairmans fees are determinedindependently to the fees of other non-executive directors based

70、 on comparative roles in the external market.The chairmanis not present at any discussions relating to the determination of his own remuneration.ASX listing rules require the aggregate non-executive directors remuneration be determined periodically by a general meeting.The most recent determination

71、was at the Annual General Meeting held on 26 October 2015,where the shareholders approveda maximum annual aggregate remuneration of$300,000.medlab.coINNOVATION-QUALITY-LIFE SCIENCES 13 Executive remunerationThe consolidated entity aims to reward executives with a level and mix of remuneration based

72、on their position andresponsibility,which has both fixed and variable components.The executive remuneration and reward framework has three components:Base pay and non-monetary benefitsShare-based paymentsOther remuneration such as superannuation and long service leaveThe combination of these compris

73、es the executives total remuneration.Fixed remuneration,consisting of base salary,superannuation and non-monetary benefits,are reviewed annually by theNomination and Remuneration Committee,based on individual and business unit performance,the overall performance ofthe consolidated entity and compara

74、ble market remunerations.Executives may receive their fixed remuneration in the form of cash or other fringe benefits(for example motor vehicle benefits)where it does not create any additional costs to the consolidated entity and provides additional value to the executive.The long-term incentives(LT

75、I)include long service leave and share-based payments.Shares are awarded to executives underthe shareholder approved Employee Share Option Plan(ESOP)based on long-term incentive measures.These include increasein shareholders value relative to the entire market and the increase compared to the consol

76、idated entitys direct competitors.The Nomination and Remuneration Committee reviewed the long-term equity-linked performance incentives specifically forexecutives during the year ended 30 June 2017.As at 30 June 2017,no options were issued under the ESOP.Voting and comments made at the companys 2016

77、 Annual General Meeting(AGM)At the 2016 AGM,100.00%of the votes received supported the adoption of the remuneration report for the year ended 30June 2016.The Company did not receive any specific feedback at the AGM regarding its remuneration package.Details of remunerationAmounts of remunerationDeta

78、ils of the remuneration of key management personnel of the consolidated entity are set out in the following tables.The key management personnel of the consolidated entity consisted of the following directors of Medlab Clinical Limited:Michael Hall Non-Executive ChairmanDrew Townsend Non-Executive Di

79、rectorSean Hall Managing Director and Chief Executive OfficerAnd the following persons:Alan Dworkin Chief Financial Officer and Company Secretary Dr Luis Vitetta Director of Medical ResearchDr David Rutolo Director of Sciencemedlab.coINNOVATION-QUALITY-LIFE SCIENCES 14 The proportion of remuneration

80、 linked to performance and the fixed proportion are as follows:2017Short-term benefitsShare-basedbenefitsCash salaryand fees$Cashbonus$Non-monetary$Super-annuation$Equitysettled$Post-employmentbenefitsTotal$Directors:Michael HallDrew TownsendSean HallOther Key Management Personnel:Alan DworkinLuis V

81、itettaDavid Rutolo124,86360,225299,178171,260250,250159,1511,064,927129,60060,225327,600187,410274,024172,3411,151,200-4,737-28,42216,15023,77413,19086,273-2016Short-term benefitsShare-basedbenefitsCash salaryand fees$Cashbonus$Non-monetary$Super-annuation$Equitysettled$Post-employmentbenefitsTotal$

82、Directors:Michael HallDrew TownsendSean HallOther Key Management Personnel:Alan DworkinLuis VitettaDavid Rutolo124,86361,383299,178170,533250,239161,1951,067,391129,60061,383327,600186,683274,012174,4551,153,733-4,737-28,42216,15023,77313,26086,342-Directors:Michael HallDrew TownsendSean HallOther K

83、ey Management Personnel:Alan DworkinLuis VitettaDavid Rutolo100%100%100%100%100%100%Fixed remuneration2017-%-%-%-%-%-%-%-%-%-%-%-%-%-%-%-%-%-%-%-%-%-%-%-%100%100%100%100%100%100%20162017201620172016At risk-LTIAt risk-STINamemedlab.coINNOVATION-QUALITY-LIFE SCIENCES 15 Service agreementsRemuneration

84、and other terms of employment for key management personnel are formalised in service agreements oremployment contracts.Details of these agreements are as follows:Name:Sean HallTitle:Managing Director and Chief Executive OfficerAgreement commenced:1 July 2012Term of agreement:No Fixed TermDetails:Bas

85、e salary for the year ending 30 June 2017 of$300,000 plus superannuation,to be reviewed annually by the Nomination and Remuneration Committee.12 month termination notice by either party,non-solicitation and non-compete clauses.Name:Alan DworkinTitle:Chief Financial Officer and Company Secretary Agre

86、ement commenced:9 February 2015Term of agreement:No Fixed TermDetails:Base salary for the year ending 30 June 2017 of$170,000 plus superannuation,to be reviewed annually by the Nomination and Remuneration Committee.4 weeks termination notice by either party,eligible to be part of the consolidated en

87、titys ESOP.Name:Luis VitettaTitle:Director of Medical ResearchAgreement commenced:4 March 2013Term of agreement:No Fixed TermDetails:Base salary for the year ending 30 June 2017 of$250,250 plus superannuation,to be reviewed annually by the Nomination and Remuneration Committee.2 weeks termination no

88、tice by either party,eligible to be part of the consolidated entitys ESOP.Name:David RutoloTitle:Director of ScienceAgreement commenced:22 January 2015Term of agreement:No Fixed TermDetails:Base salary for the year ending 30 June 2017 of US$120,000 plus employment benefits,to be reviewed annually by

89、 the Nomination and Remuneration Committee.30 days termination notice by either party.Key management personnel have no entitlement to termination payments in the event of removal for misconduct.medlab.coINNOVATION-QUALITY-LIFE SCIENCES 16 Share-based compensationOptionsThe terms and conditions of ea

90、ch grant of options over ordinary shares affecting remuneration of directors and other keymanagement personnel in this financial year or future reporting years are as follows:Options granted carry no dividend or voting rights.The number of options over ordinary shares granted to and vested by direct

91、ors and other key management personnel as partof compensation during the year ended 30 June 2017 are set out below:Values of options over ordinary shares granted,exercised and lapsed for directors and other key management personnel aspart of compensation during the year ended 30 June 2017 are set ou

92、t below:NoneThis concludes the remuneration report,which has been audited.NoneVesting date andexercisable date$Exercise priceExpiry dateGrant dateMichael HallSean HallLuis VitettaAlan Dworkin-1,000,000-Number ofoptions grantedduring theyear 2017Number ofoptions vestedduring theyear 2016Number ofopti

93、ons grantedduring theyear 2016Number ofoptions vestedduring theyear 2017Namemedlab.coINNOVATION-QUALITY-LIFE SCIENCES 17 Indemnification of OfficersNo indemnities have been given or insurance premiums paid,during the financial year,for any person who is or has been anofficer or auditor of the contro

94、lled group.Proceedings on behalf of the CompanyNo person has applied for leave of Court to bring proceedings on behalf of the Company or intervene in any proceedings towhich the Company is a party for the purpose of taking responsibility on behalf of the company for all or any part of thoseproceedin

95、gs.The company was not a party to any such proceedings during the year.Non-Audit ServicesDetails of the amounts paid or payable to the auditor for non-audit services provided during the financial year by the auditorare outlined in Note 21 to the financial statements.The directors are satisfied that

96、the provision of non-audit services during the financial year,by the auditor(or by another personor firm on the auditors behalf),is compatible with the general standard of independence for auditors imposed by theCorporations Act 2001.The directors are of the opinion that the services as disclosed in

97、 Note 21 to the financial statements do not compromise theexternal auditors independence requirements of the Corporations Act 2001 for the following reasons:All non-audit services have been reviewed and approved to ensure that they do not impact the integrity and objectivity of the auditor;andNone o

98、f the services undermine the general principles relating to auditor independence as set out in APES 110 Code of Ethics for Professional Accountants issued by the Accounting Professional and Ethical Standards Board,including reviewing or auditing the auditors own work,acting in a management or decisi

99、on-making capacity for the company,acting as advocate for the company or jointly sharing economic risks and rewards.ASX Lsting Rule 11.1.3In accordance with ASX Listing Rule 11.1.3,the Company has used the cash and assets in a form readily convertible to cash that it had at the time of admission(14

100、July 2015)to the year ending 30 June 2017 in a way consistent with its businessobjectives.Auditors Independence DeclarationThe lead auditors independence declaration for the year ended 30 June 2017 has been received and can be found on page18 of the financial report.Signed in accordance with a resol

101、ution of the Board of Directors.S HallD TownsendDirectorDirectorDated this 31st day of August 2017medlab.coINNOVATION-QUALITY-LIFE SCIENCES 19 STATEMENT OF PROFIT AND LOSSAND OTHER COMPREHENSIVE INCOMEFOR THE YEAR ENDED 30 JUNE 2017The accompanying notes form part of these financial statementsRevenu

102、eRaw materials and consumables usedEmployee benefits expenseDepreciation and amortisation expenseProfessional and consulting feesOperating lease costsFinance costsSelling&marketing expensesOther expensesLoss before income taxIncome tax expenseNet loss for the periodOther comprehensive incomeItems th

103、at will not be reclassified subsequently to profit or lossForeign currency translationOther comprehensive loss for the year,net of taxTotal comprehensive loss for the yearNet loss attributable to:Members of the parent entityNon-controlling interestTotal comprehensive loss attributable to:Members of

104、the parent entityNon-controlling interestEarnings per share Basic earnings per shareDiluted earnings per share2,620,118(862,955)(2,568,944)(125,905)(778,030)(279,459)(16,295)(242,465)(1,467,031)(3,720,966)-(3,720,966)(3,177)(3,177)(3,724,143)(3,493,083)(227,883)(3,720,966)(3,494,990)(229,153)(3,724,

105、143)Cents(2.19)(2.13)4,446,533(1,725,322)(3,395,681)(110,408)(764,668)(372,914)(16,143)(490,218)(1,409,359)(3,838,180)-(3,838,180)9,9959,995(3,828,185)(3,657,644)(180,536)(3,838,180)(3,651,647)(176,538)(3,828,185)Cents(2.08)(1.98)34528282017$2016$Notesmedlab.coINNOVATION-QUALITY-LIFE SCIENCES 20 STA

106、TEMENT OF FINANCIAL POSITIONAS AT 30 JUNE 2017The accompanying notes form part of these financial statements.ASSETSCurrent AssetsCash and cash equivalentsTrade and other receivablesInventoriesOther assetsTotal Current AssetsNon-Current AssetsProperty,plant and equipmentTotal Non-Current AssetsTOTAL

107、ASSETSLIABILITIESCurrent LiabilitiesTrade and other payablesEmployee benefitsBorrowingsTotal Current LiabilitiesNon-Current LiabilitiesEmployee benefitsProvisionsOther liabilitiesBorrowingsTotal Non-Current LiabilitiesTOTAL LIABILITIESNET ASSETSEQUITYIssued capitalReservesAccumulated lossesEquity at

108、tributable to the owners of Medlab Clinical LimitedOutside equity interest TOTAL EQUITY2017$Notes801,3681,141,211690,557136,9332,770,069495,902495,9023,265,971906,383147,36619,5281,073,277-37,50010,482253,048301,0301,374,3071,891,66410,611,41062,043(8,125,262)2,548,191(656,527)1,891,6641,497,6001,70

109、0,790761,059285,1334,244,582452,972452,9724,697,5541,062,439194,32132,2671,289,02744,05947,5002,025264,454358,0381,647,0653,050,48915,598,42068,040(11,782,906)3,883,554(833,065)3,050,4896789101112131214151316172016$medlab.coINNOVATION-QUALITY-LIFE SCIENCES 21 STATEMENT OF CHANGES IN EQUITYFOR THE YE

110、AR ENDED 30 JUNE 2017The accompanying notes form part of these financial statements.Consolidated GroupBalance at 1 July 2015Loss after income tax for the periodOther comprehensive income for the period,net of taxTotal comprehensive income for the periodTransactions with owners in their capacity as o

111、wners:Contributions of equity,net of transaction costs(Note 16)Balance at 30 June 20165,252,374-5,359,03610,611,410(4,632,179)(3,493,083)(3,493,083)(8,125,262)63,950(1,907)(1,907)62,043684,145(3,493,083)(1,907)(3,494,990)5,359,0362,548,191(427,374)(227,883)(1,270)(229,153)(656,527)256,771(3,720,966)

112、(3,177)(3,724,143)5,359,0361,891,664AccumulatedLossesAttributableto membersof the parentcompany$Total$Non-ControllingInterests$Attributableto ownersof the parent$Reserves$IssuedCapital$Consolidated GroupBalance at 1 July 2016Loss after income tax for the periodOther comprehensive income for the peri

113、od,net of taxTotal comprehensive income for the periodTransactions with owners in their capacity as owners:Contributions of equity,net of transaction costs(Note 16)Balance at 30 June 201710,611,410-4,987,01015,598,420(8,125,262)(3,657,644)(3,657,644)(11,782,906)62,0435,9975,99768,0402,548,191(3,657,

114、644)5,997(3,651,647)4,987,0103,883,554(656,527)(180,536)3,998(176,538)(833,065)1,891,664(3,838,180)9,995(3,828,185)4,987,0103,050,489AccumulatedLossesAttributableto membersof the parentcompany$Total$Non-ControllingInterests$Attributableto ownersof the parent$Reserves$IssuedCapital$medlab.coINNOVATIO

115、N-QUALITY-LIFE SCIENCES 22 STATEMENT OF CASH FLOWSFOR THE YEAR ENDED 30 JUNE 2017The accompanying notes form part of these financial statements.Cash Flows from Operating ActivitiesReceipts from customersReceipts from R&D Tax refundPayments to suppliers and employeesFinance costsInterest receivedNet(

116、used)from operating activitiesCash flows from Investing ActivitiesPurchase of plant and equipmentNet cash(used in)investing activitiesCash flows from Financing ActivitiesRepayment of borrowingsProceeds from issue of sharesShare issue transaction costsNet cash from financing activitiesNet decrease in

117、 cash heldCash and cash equivalents at beginning of financial yearExchange rate adjustmentsCash and cash equivalents at end of the financial year1,579,382839,192(6,357,789)(8,853)51,235(3,896,833)(79,623)(79,623)(755,005)6,166,900(731,039)4,680,856704,400115,815(18,847)801,3683,193,297911,325(8,400,

118、881)(4,737)50,858(4,250,138)(66,726)(66,726)-5,361,150(374,140)4,987,010670,146801,36826,0861,497,600662017$2016$Notesmedlab.coINNOVATION-QUALITY-LIFE SCIENCES 23 NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2017The consolidated financial statements and notes represent those of Medlab

119、 Clinical Limited and controlled entities(Company,Group or consolidated entity).The place of business of the Parent Company is:Medlab Clinical Limited66 McCauley StreetAlexandria NSW 2015In accordance with the Corporations Act 2001,these financial statements present the results of the consolidated e

120、ntity only.Supplementary information about the parent entity is disclosed in Note 2.The Financial Statements were authorised for issue by the Directors on 31 August 2017.NOTE 1 SIGNIFICANT ACCOUNTING POLICIESBASIS OF PREPARATIONThese general purpose financial statements have been prepared in accorda

121、nce with Australian Accounting Standards andInterpretations issued by the Australian Accounting Standards Board(AASB)and the Corporations Act 2001,as appropriatefor for-profit oriented entities.These financial statements also comply with International Financial Reporting Standards asissued by the In

122、ternational Accounting Standards Board(IASB).The financial statements have been prepared under the historical cost convention.The preparation of the financial statements requires the use of certain critical accounting estimates.It also requiresmanagement to exercise its judgement in the process of a

123、pplying the companys accounting policies.The areas involving ahigher degree of judgement or complexity,or areas where assumptions and estimates are significant to the financial statements,are disclosed in Note 1.1.2BASIS OF CONSOLIDATIONThe consolidated financial statements incorporate the assets an

124、d liabilities of all subsidiaries of Medlab Clinical Limited(company or parent entity)as at 30 June 2017 and the results of all subsidiaries for the period then ended.Medlab ClinicalLimited and its subsidiaries together are referred to in these financial statements as the consolidated entity.Subsidi

125、aries are all those entities over which the consolidated entity has control.The consolidated entity controls an entitywhen the consolidated entity is exposed to,or has rights to,variable returns from its involvement with the entity and has theability to affect those returns through its power to dire

126、ct the activities of the entity.Subsidiaries are fully consolidated from thedate on which control is transferred to the consolidated entity.They are de-consolidated from the date that control ceases.Intercompany transactions,balances and unrealised gains on transactions between entities in the conso

127、lidated entity areeliminated.Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the assettransferred.Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policiesadopted by the consolidated entity.The ac

128、quisition of subsidiaries is accounted for using the acquisition method of accounting.A change in ownership interest,without the loss of control,is accounted for as an equity transaction,where the difference between the considerationtransferred and the book value of the share of the non-controlling

129、interest acquired is recognised directly in equity attributableto the parent.Non-controlling interest in the results and equity of subsidiaries are shown separately in the statement of profit or loss andother comprehensive income,statement of financial position and statement of changes in equity of

130、the consolidated entity.Losses incurred by the consolidated entity are attributed to the non-controlling interest in full,even if that results in a deficitbalance.medlab.coINNOVATION-QUALITY-LIFE SCIENCES 24 NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2017SIGNIFICANT ACCOUNTING POLIC

131、IES(CONTINUED)1.3CASH AND CASH EQUIVALENTS Cash and cash equivalents includes cash on hand,deposits held at call with financial institutions,other short-term,highly liquidinvestments with original maturities of three months or less that are readily convertible to known amounts of cash and whichare s

132、ubject to an insignificant risk of changes in value.1.4INVENTORIESRaw materials(capsules,bottles and labels),work in progress and finished goods are stated at the lower of cost and netrealisable value on a weighted average basis.Cost comprises direct materials and delivery costs,import duties and ot

133、her taxes.Costs of purchased inventory are determined after deducting rebates and discounts received or receivable.Stock in transit is stated at the lower of cost and net realisable value.Cost comprises purchase and delivery costs,net of rebatesand discounts received or receivable.Net realisable val

134、ue is the estimated selling price in the ordinary course of business less the estimated costs of completion andthe estimated costs necessary to make the sale.Culture librariesCosts associated with the acquisition of culture libraries are expensed in the period in which they are incurred.1.5PROPERTY,

135、PLANT AND EQUIPMENTPlant and equipment is stated at historical cost less accumulated depreciation and impairment.Historical cost includesexpenditure that is directly attributable to the acquisition of the items.Depreciation is calculated on a straight-line or diminishing value basis to write off the

136、 net cost of each item of property,plantand equipment(excluding land)over their expected useful lives as follows:Leasehold improvements3-15 yearsPlant and equipment3-13 yearsOffice furniture and equipment3-10 yearsThe residual values,useful lives and depreciation methods are reviewed,and adjusted if

137、 appropriate,at each reporting date.Leasehold improvements and plant and equipment under lease are depreciated over the unexpired period of the lease or theestimated useful life of the assets,whichever is shorter.An item of property,plant and equipment is derecognised upon disposal or when there is

138、no future economic benefit to thecompany.Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss.Any revaluationsurplus reserve relating to the item disposed of is transferred directly to retained profits.medlab.coINNOVATION-QUALITY-LIFE SCIENCES 25 NOTES T

139、O THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2017SIGNIFICANT ACCOUNTING POLICIES(CONTINUED)1.6IMPAIRMENT OF NON-FINANCIAL ASSETSNon-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carryingamount may not be recoverable.An impairment l

140、oss is recognised for the amount by which the assets carrying amountexceeds its recoverable amount.Recoverable amount is the higher of an assets fair value less costs of disposal and value-in-use.The value-in-use is the presentvalue of the estimated future cash flows relating to the asset using a pr

141、e-tax discount rate specific to the asset or cash-generating unit to which the asset belongs.Assets that do not have independent cash flows are grouped together to form acash-generating unit.1.7LEASINGThe determination of whether an arrangement is or contains a lease is based on the substance of the

142、 arrangement and requiresan assessment of whether the fulfilment of the arrangement is dependent on the use of a specific asset or assets and thearrangement conveys a right to use the asset.A distinction is made between finance leases,which effectively transfer from the lessor to the lessee substant

143、ially all the risksand benefits incidental to ownership of leased assets,and operating leases,under which the lessor effectively retainssubstantially all such risks and benefitsOperating lease payments,net of any incentives received from the lessor,are charged to profit or loss on a straight line ba

144、sisover the term of the lease.1.8PROVISIONSProvisions are recognised when the Group has a present obligation(legal or constructive)as a result of a past event,it isprobable that the Group will be required to settle the obligation,and a reliable estimate can be made of the amount of theobligation.The

145、 amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at theend of the reporting period,taking into account the risks and uncertainties surrounding the obligation.Where a provision ismeasured using the cash flows estimated to settle the

146、 present obligation,its carrying amount is the present value of thosecash flows(where the effect of the time value of money is material).When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party,thereceivable is recognised as an asset if

147、 it is virtually certain that reimbursement will be received and the amount of the receivablecan be measured reliably.medlab.coINNOVATION-QUALITY-LIFE SCIENCES 26 NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2017SIGNIFICANT ACCOUNTING POLICIES(CONTINUED)1.9EMPLOYEE BENEFITSShort-term

148、employee benefitsLiabilities for wages and salaries,including non-monetary benefits,annual leave and long service leave expected to be settledwholly within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities are settled.Share-based paymentsEquity-sett

149、led and cash-settled share-based compensation benefits are provided to employees.Equity-settled transactions are awards of shares,or options over shares,that are provided to employees in exchange for therendering of services.Cash-settled transactions are awards of cash for the exchange of services,w

150、here the amount of cash isdetermined by reference to the share price.The cost of equity-settled transactions are measured at fair value on grant date.Fair value is independently determined usingeither the Binomial or Black-Scholes option pricing model that takes into account the exercise price,the t

151、erm of the option,the impact of dilution,the share price at grant date and expected price volatility of the underlying share,the expected dividendyield and the risk free interest rate for the term of the option,together with non-vesting conditions that do not determinewhether the consolidated entity

152、 receives the services that entitle the employees to receive payment.No account is taken ofany other vesting conditions.The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity over the vestingperiod.The cumulative charge to profit or loss is calcu

153、lated based on the grant date fair value of the award,the best estimateof the number of awards that are likely to vest and the expired portion of the vesting period.The amount recognised in profitor loss for the period is the cumulative amount calculated at each reporting date less amounts already r

154、ecognised in previousperiods.The cost of cash-settled transactions is initially,and at each reporting date until vested,determined by applying either theBinomial or Black-Scholes option pricing model,taking into consideration the terms and conditions on which the award wasgranted.The cumulative char

155、ge to profit or loss until settlement of the liability is calculated as follows:during the vesting period,the liability at each reporting date is the fair value of the award at that date multiplied by the expired portion of the vesting period.from the end of the vesting period until settlement of th

156、e award,the liability is the full fair value of the liability at the reporting date.All changes in the liability are recognised in profit or loss.The ultimate cost of cash-settled transactions is the cash paid tosettle the liability.Market conditions are taken into consideration in determining fair

157、value.Therefore,any awards subject to market conditionsare considered to vest irrespective of whether or not that market condition has been met,provided all other conditions aresatisfied.If equity-settled awards are modified,as a minimum an expense is recognised as if the modification has not been m

158、ade.Anadditional expense is recognised,over the remaining vesting period,for any modification that increases the total fair value ofthe share-based compensation benefit as at the date of modification.If the non-vesting condition is within the control of the consolidated entity or employee,the failur

159、e to satisfy the condition istreated as a cancellation.If the condition is not within the control of the consolidated entity or employee and is not satisfiedduring the vesting period,any remaining expense for the award is recognised over the remaining vesting period,unless theaward is forfeited.medl

160、ab.coINNOVATION-QUALITY-LIFE SCIENCES 27 NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2017SIGNIFICANT ACCOUNTING POLICIES(CONTINUED)If equity-settled awards are cancelled,it is treated as if it has vested on the date of cancellation,and any remaining expense isrecognised immediately.I

161、f a new replacement award is substituted for the cancelled award,the cancelled and new award istreated as if they were a modification.Liabilities recognised in respect of long-term employee benefits are measured as the present value of the estimated futurecash outflows to be made by the Group in res

162、pect of services provided by employees up to reporting date.1.10 REVENUE RECOGNITIONRevenue is recognised when it is probable that the economic benefit will flow to the consolidated entity and the revenue canbe reliably measured.Revenue is measured at the fair value of the consideration received or

163、receivable.Sale of nutraceuticalsSale of goods revenue is recognised at the point of sale,which is at the time when the customers orders are despatched.Amounts disclosed as revenue are net of sales returns and trade discounts.R&D refundable tax offset Tax refundable tax offset is recognised when the

164、re is a reasonable assurance that the incentive will be received and all attachedconditions will be complied with.InterestInterest revenue is recognised as interest accrues using the effective interest method.This is a method of calculating theamortised cost of a financial asset and allocating the i

165、nterest income over the relevant period using the effective interest rate,which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to thenet carrying amount of the financial asset.R&D contract revenueR&D contract revenue is recognised b

166、y reference to the stage of the contracts.Stage of completion is measured by referenceto milestones achieved as per the contract.Where the milestones are not clarified as per the contract,revenue is recognisedbased on other indications as per the contract.1.11 FOREIGN CURRENCIES1.11.1 Individual Con

167、trolled EntitiesThe individual Financial Statements of each Group entity are presented in the currency of the primary economic environmentin which the entity operates(its functional currency).For the purpose of the consolidated Financial Statements,the financialresults and financial position of each

168、 Group entity are expressed in Australian Dollars($),which is the functional currency ofMedlab Clinical Limited,and the presentation currency for the consolidated Financial Statements.1.11.2 Foreign Currency TransactionsIn preparing the Financial Statements of the individual entities,transactions in

169、 currencies other than the entitys functionalcurrency(foreign currencies)are recognised at the rates of exchange prevailing on the dates of the transactions.At the end ofeach reporting period,monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date.Non-m

170、onetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing onthe date when the fair value was determined.Non-monetary items that are measured in terms of historical cost in a foreigncurrency are not retranslated.1.11.3 Foreign OperationsTh

171、e financial results and position of foreign operations,whose functional currency is different from the Groups presentationcurrency,are translated as follows:Assets and liabilities are translated at year-end exchange rates prevailing at that reporting date;Income and expenses are translated at averag

172、e exchange rates for the period where the average rate approximates the rate at the date of the transaction;andRetained earnings are translated at the exchange rates prevailing at the date of the transaction.Exchange differences arising on translation of foreign operations are transferred directly t

173、o the Groups foreign currencytranslation reserve in the statement of financial position.These differences are recognised in the statement of profit or lossand other comprehensive income in the period.The foreign currency reserve is recognised in profit or loss when the foreign operation or net inves

174、tment is disposed of.medlab.coINNOVATION-QUALITY-LIFE SCIENCES 28 NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2017SIGNIFICANT ACCOUNTING POLICIES(CONTINUED)1.12GOODS AND SERVICE TAXRevenues,expenses and assets are recognised net of the amount of goods and services tax(GST),except:whe

175、re the amount of GST incurred 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;orfor receivables and payables which are recognised inclusive of GST.The net amount of GST recoverable from,or payable to,the

176、taxation authority is included as part of receivables or payables.Cash flows are included in the consolidated Statement of Cash Flows on a gross basis.The GST component of cash flowsarising from investing and financing activities which is recoverable from,or payable to,the taxation authority is clas

177、sified withinoperating cash flows.1.13TAXATIONThe income tax expense or benefit for the period is the tax payable on that periods taxable income based on the applicableincome tax rate for each jurisdiction,adjusted by changes in deferred tax assets and liabilities attributable to temporarydifference

178、s,unused tax losses and the adjustment recognised for prior periods,where applicable.Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to apply when the assetsare recovered or liabilities are settled,based on those tax rates that are enacted or su

179、bstantively enacted,except for:When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and that,at the time of the transaction,affects neither the accounting nor taxable profits;orWhe

180、n the taxable temporary difference is associated with interests in subsidiaries,associates or joint ventures,and the timing of the reversal can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future.The Company and its wholly owned Australian reside

181、nt entities are part of a tax consolidated group.As a consequence,allmembers of the tax-consolidated group are taxed as a single entity.The head entity within the tax consolidated group is MedlabClinical Limited.1.14ISSUED CAPITALOrdinary shares are classified as equity.Incremental costs directly at

182、tributable to the issue of new shares or options are shown in equity as a deduction,net of tax,from the proceeds.1.15EXPENSESResearch and developmentResearch and development costs are expensed in the period in which they are incurred.Patents and trademarksCosts associated with patents and trademarks

183、 are expensed in the period in which they are incurred.Website development costsCosts associated with website development are expensed in the period in which they are incurred.1.16TRADE AND OTHER RECEIVABLESTrade receivables are recognised and carried at original invoice amount less a provision for

184、any uncollectable debts.An estimatefor doubtful debts is made when there is objective evidence that the Group will not be able to collect the receivable.Financialdifficulties of the debtor and default payments are considered objective evidence of impairment.Bad debts are written offwhen identified a

185、s uncollectable.medlab.coINNOVATION-QUALITY-LIFE SCIENCESNOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2017SIGNIFICANT ACCOUNTING POLICIES(CONTINUED)1.17TRADE AND OTHER PAYABLESLiabilities for trade creditors are carried at cost which is the fair value of the consideration to be paid i

186、n the future for goods or servicesreceived,whether or not billed to the Group at balance date.The amounts are unsecured and are usually paid within 30 days of recognition.1.18BORROWINGSLoans and borrowings are initially recognised at the fair value of the consideration received,net of transaction co

187、sts.1.19EARNINGS PER SHAREBasic earnings per shareBasic earnings per share is calculated by dividing the profit or loss attributable to the owners of Medlab Clinical Limited,excluding any costs of servicing equity other than ordinary shares,by the weighted average number of ordinary sharesoutstandin

188、g during the financial year,adjusted for bonus elements in ordinary shares issued during the financial year.Diluted earnings per shareDiluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account theafter income tax effect of interest and o

189、ther financing costs associated with dilutive potential ordinary shares and the weightedaverage number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares.1.20GOING CONCERNThe economic entity has net current assets of$2,955,555 including cash

190、and cash equivalents of$1,497,600.For the yearended 30 June 2017,the consolidated group reported a loss after providing for income tax and non-controlling interest of$3,657,644(2016:$3,493,083)and net cash outflows from operating activities of$4,250,138.The nutraceutical business has grown 118%over

191、2016 and will continue to grow substantially with further marketing initiativesfor the existing and new nutraceutical products to be released.The Company has also established a strategic alliance withHeritage Brands Limited to develop and market the Companys products through the pharmacy retail chan

192、nel.The anticipatedincrease in the current product sales,the new product sales and the development of the pharmacy retail channel will contributeto the generation of additional revenue and provide more cash to fund the operations of the Company.Furthermore,inaddition to the anticipated R&D refund fo

193、r 2017,the Company estimates an R&D refund in excess of$1.5m for the estimatedR&D expenses for FY 2018.As previously announced,the Company has executed a finance facility of$1.5m and has unlistedoptions which have vested and are a further source of capital.For these reasons the directors believe the

194、 company is a going concern.NEW,REVISED OR AMENDING ACCOUNTING STANDARDS AND INTERPRETATIONS ADOPTEDThe consolidated entity has not elected to adopt any accounting standards or amendments to standards or interpretationsissued prior to the date of this report where application is not mandatory for th

195、e year ended 30 June 2017.NEW ACCOUNTING STANDARDS AND INTERPRETATIONS NOT YET MANDATORY OR EARLY ADOPTEDAustralian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory,have not beenearly adopted by the consolidated entity for the annual report

196、ing period ended 30 June 2017.The consolidated entitys assessment of theimpact of these new or amended Accounting Standards and Interpretations,most relevant to the consolidated entity,are set out below.AASB 9 Financial InstrumentsThis standard is applicable to annual reporting periods beginning on

197、or after 1 January 2018.The standard replaces all previous versionsof AASB 9 and completes the project to replace IAS 39 Financial Instruments:Recognition and Measurement.AASB 9 introduces newclassification and measurement models for financial assets.A financial asset shall be measured at amortised

198、cost,if it is held within abusiness model whose objective is to hold assets in order to collect contractual cash flows,which arise on specified dates and solelyprincipal and interest.All other financial instrument assets are to be classified and measured at fair value through profit or loss unlessth

199、e entity makes an irrevocable election on initial recognition to present gains and losses on equity instruments(that are not held-for-trading)in other comprehensive income(OCI).For financial liabilities,the standard requires the portion of the change in fair value thatrelates to the entitys own cred

200、it risk to be presented in OCI(unless it would create an accounting mismatch).New simpler hedgeaccounting requirements are intended to more closely align the accounting treatment with the risk management activities of the entity.New impairment requirements will use an expected credit loss(ECL)model

201、to recognise an allowance.Impairment will be measuredunder a 12-month ECL method unless the credit risk on a financial instrument has increased significantly since initial recognition inwhich case the lifetime ECL method is adopted.The standard introduces additional new disclosures.The consolidated

202、entity will adoptthis standard from 1 July 2018 but the impact of its adoption is yet to be assessed by the consolidated entity.medlab.coINNOVATION-QUALITY-LIFE SCIENCES 30 NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2017SIGNIFICANT ACCOUNTING POLICIES(CONTINUED)AASB 15 Revenue from

203、Contracts with CustomersThis standard is applicable to annual reporting periods beginning on or after 1 January 2018.AASB 15 introduces a five stepprocess for revenue recognition with the core principle of the new Standard being for entities to recognise revenue to depictthe transfer of goods or ser

204、vices to customers in amounts that reflect the consideration(that is,payment)to which the entityexpects to be entitled in exchange for those goods or services.Accounting policy changes will arise in timing of revenuerecognition,treatment of contracts costs and contracts which contain a financing ele

205、ment.AASB 15 will also result in enhanceddisclosures about revenue,provide guidance for transactions that were not previously addressed comprehensively(for example,service revenue and contract modifications)and improve guidance for multiple-element arrangements.The consolidatedentity will adopt this

206、 standard from 1 July 2018 but the impact of its adoption is yet to be assessed by the consolidated entity.AASB 16 LeasesThis standard is applicable to annual reporting periods beginning on or after 1 January 2019.AASB 16 will cause the majorityof leases of an entity to be brought onto the statement

207、 of financial position.There are limited exceptions relating to short-term leases and low value assets which may remain off-balance sheet.The calculation of the lease liability will take into accountappropriate discount rates,assumptions about lease term and increases in lease payments.A correspondi

208、ng right to use assetwill be recognised which will be amortised over the term of the lease.Rent expense will no longer be shown,the profit andloss impact of the leases will be through amortisation and interest charges.The consolidated entity will adopt this standardfrom 1 July 2019 but the impact of

209、 its adoption is yet to be assessed by the consolidated entity.CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTYThe preparation of the financial statements requires management to make judgements,estimates and assumptions that affectthe reported amounts in the financial stateme

210、nts.Management continually evaluates its judgements and estimates in relationto assets,liabilities,contingent liabilities,revenue and expenses.Management bases its judgements,estimates and assumptionson historical experience and on other various factors,including expectations of future events,manage

211、ment believes to bereasonable under the circumstances.The resulting accounting judgements and estimates will seldom equal the related actualresults.The judgements,estimates and assumptions that have a significant risk of causing a material adjustment to the carryingamounts of assets and liabilities(

212、refer to the respective notes)within the next financial year are discussed below.Provision for impairment of receivablesThe provision for impairment of receivables assessment requires a degree of estimation and judgement.The level of provisionis assessed by taking into account the recent sales exper

213、ience,the ageing of receivables,historical collection rates and specificknowledge of the individual debtors financial position.Recovery of deferred tax assetsDeferred tax assets are recognised for deductible temporary differences only if the consolidated entity considers it is probablethat future ta

214、xable amounts will be available to utilise those temporary differences and losses.Estimation of useful lives of assetsThe consolidated entity determines the estimated useful lives and related depreciation and amortisation charges for its property,plant and equipment and finite life intangible assets

215、.The useful lives could change significantly as a result of technicalinnovations or some other event.The depreciation and amortisation charge will increase where the useful lives are less thanpreviously estimated lives,or technically obsolete or non-strategic assets that have been abandoned or sold

216、will be written offor written down.Provision for impairment of inventoriesThe provision for impairment of inventories assessment requires a degree of estimation and judgement.The level of theprovision is assessed by taking into account the recent sales experience,the ageing of inventories and other

217、factors that affectinventory obsolescence.Share-based payment transactionsThe consolidated entity measures the cost of equity-settled transactions with employees by reference to the fair value of theequity instruments at the date at which they are granted.The fair value is determined by using either

218、 the Binomial or Black-Scholes model taking into account the terms and conditions upon which the instruments were granted.The accountingestimates and assumptions relating to equity-settled share-based payments would have no impact on the carrying amountsof assets and liabilities within the next annu

219、al reporting period but may impact profit or loss and equity.medlab.coINNOVATION-QUALITY-LIFE SCIENCES 31 NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2017NOTE 2 PARENT INFORMATIONThe following information has been extracted from the books and records of the parent and has been prepar

220、ed in accordancewith Australian Accounting Standards.Contingent liabilitiesThe parent entity had no contingent liabilities as at 30 June 2017.Significant accounting policiesThe accounting policies of the parent entity are consistent with those of the consolidated entity,as disclosed in Note 1.NOTE 3

221、 REVENUENOTE 4 OTHER EXPENSESSTATEMENT OF FINANCIAL POSITIONASSETSCurrent assets 2,308,393 865,925Non-current assets-Investments in subsidiaries 2,252,374 2,252,374-Loans to subsidiaries 12,229,544 7,914,544TOTAL ASSETS 16,790,311 11,032,843LIABILITIESCurrent liabilities 145,881 91,449TOTAL LIABILIT

222、IES 145,881 91,449 EQUITYIssued capital 15,598,420 10,611,410Retained earnings 1,046,010 329,984TOTAL EQUITY 16,644,430 10,941,3942016$2017$Sales revenue:-Sale of goods 3,272,926 1,502,003-Rendering of R&D services&consultation 18,000 219,137 3,290,926 1,721,140Other revenue:-Interest received 50,28

223、2 51,811-R&D tax incentive 1,105,325 839,192-Other income-7,975 1,155,607 898,978Total revenue 4,446,533 2,620,1182016$2017$Other expenses includes the following specific expenses:Lab Consumables 92,656 100,425Telephone and internet 101,565 94,556Travel 175,636 225,7272016$2017$medlab.coINNOVATION-Q

224、UALITY-LIFE SCIENCES 32 NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2017NOTE 5 INCOME TAX EXPENSEThe economic entity has separate tax entities within Australia,the UK and the United States.All tax jurisdictions have tax losses,which are not recognised in their books at 30 June 2017.T

225、he unused tax losses held in the Australian group companies as at30 June 2017 are$5,513,504,while$1,480,940(USD)was held in the US companies and a further$4,809(GBP)was held inthe UK company.The tax losses are available for offset against future taxable profits of the companies in which losses arose

226、within each tax jurisdiction subject to certain conditions being met.The Directors have not brought to account a deferred tax asset to recognise the potential tax benefit of these tax losses as anybenefit will only be obtained if:The economic entity meets the conditions for deductibility imposed by

227、tax legislation in relation to the same business test and continuity of ownership laws;The economic entity derives future assessable income of a nature and of an amount sufficient to enable the benefit from deductions for the losses to be realised;andNo changes in tax legislation occur in future yea

228、rs that would adversely affect the economic entity in realising the benefit from the deductions for the losses(in the event they qualify to be utilised by the economic entity).NOTE 6 CASH AND CASH EQUIVALENTSThe prima facie tax on the(loss)from ordinary activities before income tax is reconciled to

229、the income tax as follows:Prima facie tax payable on(loss)from ordinary activities before income tax at 27.5%(1,055,500)(1,116,290)Add tax effect of:-non-deductible R&D expense 600,575 504,000-entertainment 15,845 11,926-other non-deductible expenses 42 4,980 Less:tax effect of:-Tax effect of differ

230、ent company tax rate in USA(35%)(13,118)(12,324)-R&D incentive receivable(261,250)(226,800)Future income tax benefit not recognised 713,406 834,508 -2016$2017$Cash at bank and on hand 1,497,600 801,368 Reconciliation of cash flow from operations with loss from ordinary activities after income tax Lo

231、ss after income tax(3,838,180)(3,720,966)Non-cash flows in profit Foreign exchange gains and losses(16,842)14,127 Depreciation and amortisation 110,408 125,905 Changes in assets and liabilities -(Increase)/decrease in receivables(581,198)(149,769)-(Increase)/decrease in prepayments(148,322)(51,348)-

232、Increase/(decrease)in provisions 42,983-(Increase)/decrease in inventories(82,502)(317,249)-Increase/(decrease)in employee benefits 44,059-Increase/(decrease)payables 219,456 202,467 Cash flows from operations(4,250,138)(3,896,833)2016$2017$medlab.coINNOVATION-QUALITY-LIFE SCIENCES 33 NOTES TO THE F

233、INANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2017NOTE 7 TRADE AND OTHER RECEIVABLESPast due but not impairedCustomers with balances past due but without provision for impairment of receivables amount to$137,882.The consolidated entity did not consider a credit risk on the aggregate balances after r

234、eviewing the credit terms of customersbased on recent collection practices.The ageing of the past due but not impaired receivables are as followsImpairment of receivablesThe consolidated entity has recognised a loss of$20,983(2016:Nil)in profit or loss in respect of impairment of receivables forthe

235、year ended 30 June 2017.The ageing of the impaired receivables provided for above are as follows:Movements in the provision for impairment of receivables as follows:Current Trade receivables 765,637 377,708Less:Provision for impairment of receivables(20,983)-744,654 377,708Other receivables 956,136

236、763,503Total current receivables 1,700,790 1,141,2112016$2017$1 to 2 months overdue 78,945 44,1443 to 6 months overdue 58,937 11,448Over 6 months overdue-137,882 55,5922016$2017$Opening balance-Additional provisions recognised 28,015-Receivables written off during the year as uncollectable(7,032)-20

237、,983-2016$2017$1 to 2 months overdue-3 to 6 months overdue 20,983-Over 6 months overdue-20,983-2016$2017$medlab.coINNOVATION-QUALITY-LIFE SCIENCESNOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2017NOTE 8 INVENTORIESNOTE 9 OTHER ASSETSNOTE 10 PROPERTY,PLANT AND EQUIPMENT(a)Movements in c

238、arrying amountsMovement in the carrying amounts for each class of property,plant and equipment between the beginning and the end of thecurrent financial year:Current Raw materials 206,442 103,909Finished goods 579,617 599,648 786,059 703,557Less:Provision for obsolescence(25,000)(13,000)Total invent

239、ories 761,059 690,5572016$2017$CurrentPrepayments 228,722 80,400Rental bond 56,411 56,533 Total current other assets 285,133 136,9332016$2017$Plant and equipment cost 514,919 464,960Less accumulated depreciation(195,476)(142,018)319,443 322,942Leasehold improvements-cost 130,364 123,942Less accumula

240、ted amortisation(63,706)(45,671)66,658 78,271Office furniture&equipment cost 262,301 251,956Less accumulated depreciation(195,430)(157,267)66,871 94,689Total property,plant and equipment 452,972 495,9022016$2017$Consolidated Group:Balance at 1 July 2015AdditionsDisposalsDepreciation expenseAmortisat

241、ion expenseForeign currency translationCarrying amount at 30 June 2016Plant&Equipment$Total$LeaseholdImprovements$Office Furniture&Equipment$340,92831,518-(49,504)-322,942540,64379,626-(106,616)(19,289)1,538495,90273,19724,363-(19,289)-78,271126,51823,745-(57,112)-1,53894,689medlab.coINNOVATION-QUAL

242、ITY-LIFE SCIENCES 35 NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2017NOTE 10 PROPERTY,PLANT AND EQUIPMENT(CONTINUED)NOTE 11 TRADE AND OTHER PAYABLESNOTE 12 EMPLOYEE BENEFITSThe provision for employee benefits includes all unconditional entitlements where employees have completed the

243、requiredperiod of service and also those where employees are entitled to pro-rata payments in certain circumstances.NOTE 13 BORROWINGS(a)Mr Sean Hall has advanced funds to the Company.The loan is to be repaid by 31 December 2018 and will incur interest at 3%pa.Mr Sean Hall has also provided a financ

244、e facility to the Company of$1.5m at an interest rate of 1.25%above the 30-90 bank bill rate.The facility was not drawn down on at 30 June 2017.CurrentUnsecured liabilities:Trade payables 603,726 546,133Sundry payables and accrued expenses 458,713 360,250 1,062,439 906,3832016$2017$CurrentProvision

245、for annual leave 194,321 147,366 194,321 147,366Non CurrentProvision for long service leave 44,059-44,059-2016$2017$CurrentLoan from other parties 32,267 19,528Total current borrowings 32,267 19,528Non Current Loan from director(b)264,454 253,048Total non-current borrowings 264,454 253,0482016$2017$

246、Consolidated Group:Balance at 1 July 2016AdditionsDisposalsDepreciation expenseAmortisation expenseForeign currency translationCarrying amount at 30 June 2017Plant&Equipment$Total$LeaseholdImprovements$Office Furniture&Equipment$322,94249,959-(53,468)-10319,443495,90266,727-(92,373)(18,035)751452,97

247、278,2716,422-(18,035)-66,65894,68910,346-(38,905)-74166,871medlab.coINNOVATION-QUALITY-LIFE SCIENCES 36 NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2017NOTE 14 PROVISIONS Lease make goodThe provision represents the present value of the estimated costs to make good the premises leased

248、 by the consolidated entityat the end of the respective lease terms.Movements in provisionsMovements in each class of provision during the current financial year,other than employee benefits,are set out below:NOTE 15 OTHER LIABILITIESNon-CurrentProvision for lease make-good 47,500 37,500Total non-cu

249、rrent provisions 47,500 37,5002016$2017$Lease Make Good$Carrying amount at the start of the yearAdditional provisions recognisedCarrying amount at the end of the year37,50010,00047,500CurrentDeferred lease liability 2,025-2,025-Non-CurrentDeferred lease liability-10,482 -10,4822016$2017$medlab.coINN

250、OVATION-QUALITY-LIFE SCIENCES 37 NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2017NOTE 16 ISSUED CAPITALMovements in ordinary share capitalOrdinary shares entitle the holder to participate in dividends and the proceeds on winding up of the parent entity in proportionto the number of s

251、hares held.At shareholders meetings each ordinary share is entitled to one vote when a poll is called,otherwise each shareholder hasone vote on a show of hands.Capital risk managementThe consolidated entitys objectives when managing capital is to safeguard its ability to continue as a going concern,

252、so thatit can provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital structure toreduce the cost of capital.In order to maintain or adjust the capital structure,the consolidated entity may adjust the amount of dividends paid toshareholders,return capi

253、tal to shareholders,issue new shares or sell assets to reduce debt.The consolidated entity would look to raise capital when an opportunity to invest in a business or company was seen as valueadding relative to the current companys share price at the time of the investment.The consolidated entity is

254、not activelypursuing additional investments in the short term as it continues to integrate and grow its existing businesses in order tomaximise synergies.The consolidated entity would also look to raise capital if there is a need for additional funds for strategic(whether nutraceutical or R&D)or wor

255、king capital requirements.Ordinary shares fully paid2016$2016Number10,611,41010,611,410160,834,500160,834,5002017Number178,705,000178,705,0002017$15,598,42015,598,420Total$IssuePrice$No.ofSharesDateDetailsBalanceIssue of shares-IPOShare issue costs,net of taxBalanceIssue of shares Rights IssueIssue

256、of shares Rights Issue(Underwriting)Share issue costs,net of taxBalance30 June 201514 July 201530 June 201619 August 20166 September 201630 June 20175,252,3746,166,900(807,864)10,611,4104,396,947964,203(374,140)15,598,4200.200.300.30130,000,00030,834,500160,834,50014,656,4903,214,010178,705,000medla

257、b.coINNOVATION-QUALITY-LIFE SCIENCES 38 NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2017NOTE 17 RESERVESForeign Currency Translation Reserve:The foreign currency translation reserve exchange differences arising on translation ofoverseas controlled subsidiaries in the United States an

258、d United Kingdom.Movements in reservesMovements in each class of reserve during the current and previous financial year are set out below:NOTE 18 SHARE-BASED PAYMENTSNo share options were granted during the financial year.Set out below is the summary of the options:An employee share option plan has

259、been established by the consolidated entity and approved by shareholders at a generalmeeting,whereby the consolidated entity may,at the discretion of the board of Directors,grant options over ordinary sharesin the company to certain staff of the consolidated entity.The options are issued for nil con

260、sideration and are granted inaccordance with performance guidelines established by the Nomination and Remuneration Committee.No options havebeen issued under this employee share option plan as of the date of this financial report.ReservesForeign currency translation reserve 68,040 62,043 68,040 62,0

261、432016$2017$2017Grant DateExpiry DateGrant PriceExercise PriceBalance at end of yearForfeited/Expired/OtherExercisedGrantedBalance at start of year17/04/201410/07/20152/11/201530/06/201930/6/202030/06/2019NilNilNil$0.30$0.30$0.3010,000,0001,541,7251,000,00012,541,725-10,000,0001,541,7251,000,00012,5

262、41,725ConsolidatedBalance at 30 June 2015 63,950Foreign currency translation(1,907)Balance at 30 June 2016 62,043Foreign currency translation 5,997Balance at 30 June 2017 68,040ForeignCurrency2016Grant DateExpiry DateGrant PriceExercise PriceBalance at end of yearForfeited/Expired/OtherExercisedGran

263、tedBalance at start of year17/04/201410/07/20152/11/201530/06/201930/6/202030/06/2019NilNilNil$0.30$0.30$0.3010,000,0001,541,7251,000,00012,541,725-1,541,7251,000,0002,541,72510,000,000-10,000,000medlab.coINNOVATION-QUALITY-LIFE SCIENCES 39 NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE

264、 2017NOTE 19 EVENTS SUBSEQUENT TO BALANCE DATENo matters or circumstances have arisen since 30 June 2017 which significantly affected or may significantly affect theoperations of the consolidated group,the results of those operations,or the state of affairs of the consolidated group in futurefinanci

265、al years.NOTE 20 COMMITMENTSOperating lease commitments includes contracted amounts for business premises and equipment leases under non-cancellable operating leases expiring within one to 5 years with,in some cases,options to extend.The leases have variousescalation clauses.On renewal,the terms of

266、the leases are renegotiated.NOTE 21 AUDITORS REMUNERATIONDuring the financial year the following fees were paid or payable for services provided by ESV Accounting and Business Advisors,the auditor of the company,its network firms and unrelated firms:NOTE 22 CONTINGENT LIABILITIESThe Company has give

267、n bank guarantees as at 30 June 2017 of$52,503 towards the rental bond.NOTE 23 INTERESTS IN SUBSIDIARIESPayable:-not later than 12 months 239,438 299,244-between 12 months and five years 180,896 251,361Total operating lease commitments 420,334 550,6052016$2017$Operating Lease Commitments-auditing or

268、 reviewing the financial report 43,652 39,2842016$2017$Medlab Pty LtdMedlab Clinical US IncMedlab IP Pty LtdMedlab Research Pty LtdMedlab Nutraceuticals IncMedlab Research LtdOwnershipInterest2016100%60%100%100%50%100%NameOwnershipInterest2017Principal Place of Business/Country of Incorporation100%6

269、0%100%100%60%100%AustraliaUnited States of AmericaAustraliaAustraliaUnited States of AmericaUnited Kingdommedlab.coINNOVATION-QUALITY-LIFE SCIENCES 40 NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2017NOTE 24 FINANCIAL INSTRUMENTSFinancial risk management objectivesThe consolidated ent

270、itys activities expose it to a variety of financial risks:market risk(including foreign currency risk),creditrisk and liquidity risk.The consolidated entitys overall risk management program focuses on the unpredictability of financialmarkets and seeks to minimise potential adverse effects on the fin

271、ancial performance of the consolidated entity.Theconsolidated entity uses different methods to measure different types of risk to which it is exposed.These methods includesensitivity analysis in the case of foreign exchange and other price risks,ageing analysis for credit risk.Risk management is car

272、ried out by senior finance executives(finance)under policies approved by the Board of Directors(theBoard).These policies include identification and analysis of the risk exposure of the consolidated entity and appropriateprocedures,controls and risk limits.Finance identifies,evaluates and hedges fina

273、ncial risks within the consolidated entitysoperating units.Finance reports to the Board on a monthly basis.Market riskForeign currency riskThe consolidated entity undertakes certain transactions denominated in foreign currency and is exposed to foreign currencyrisk through foreign exchange rate fluc

274、tuations.Foreign exchange risk arises from future commercial transactions,net assets of subsidiaries and recognised financial assetsand financial liabilities denominated in a currency that is not the entitys functional currency.The risk is measured usingsensitivity analysis and cash flow forecasting

275、.In order to protect against exchange rate movement,the consolidated entity has entered into forward foreign exchangecontracts.These contracts are hedging highly probable forecasted cash flows for the ensuing financial year.Managementhas a risk policy to hedge around 50%of anticipated foreign curren

276、cy transactions for the subsequent 6 to 12 months.The maturity,settlement amounts and the average contractual exchange rates of the consolidated entitys outstanding forwardforeign exchange contracts at the reporting date were as follows:Credit riskCredit risk refers to the risk that a counterparty w

277、ill default on its contractual obligations resulting in financial loss to theconsolidated entity.The consolidated entity has a strict code of credit,including obtaining agency credit information,confirming references and setting appropriate credit limits.The consolidated entity obtains guarantees wh

278、ere appropriate tomitigate credit risk.The maximum exposure to credit risk at the reporting date to recognised financial assets is the carryingamount,net of any provisions for impairment of those assets,as disclosed in the statement of financial position and notes tothe financial statements.The cons

279、olidated entity does not hold any collateral.Liquidity riskVigilant liquidity risk management requires the consolidated entity to maintain sufficient liquid assets(mainly cash and cashequivalents)to be able to pay debts as and when they become due and payable.The consolidated entity manages liquidit

280、y risk by maintaining adequate cash reserves and available borrowing facilities bycontinuously monitoring actual and forecast cash flows and matching the maturity profiles of financial assets and liabilities.Remaining contractual maturitiesThe following tables detail the consolidated entitys remaini

281、ng contractual maturity for its financial instrument liabilities.Thetables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on whichthe financial liabilities are required to be paid.The tables include both interest and principal cash flows d

282、isclosed as remainingcontractual maturities and therefore these totals may differ from their carrying amount in the statement of financial position.Averageexchange rates2016Buy US dollars Maturity:3-6 months0.75930.7353Averageexchange rates2017Sell Australiandollars2016Sell Australiandollars2017152,

283、396311,724medlab.coINNOVATION-QUALITY-LIFE SCIENCES 41 NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2017NOTE 24 FINANCIAL INSTRUMENTS(CONTINUED)The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed above.Fair value o

284、f financial instrumentsUnless otherwise stated,the carrying amounts of financial instruments reflect their fair value.NOTE 25 ACCUMULATED LOSSESNOTE 26 KEY MANAGEMENT PERSONNEL DISCLOSURESCompensationThe aggregate compensation made to directors and other members of key management personnel of the co

285、nsolidated entityis set out below:Non-derivativesNon-interest bearingTrade payablesOther payablesInterest-bearing-fixed rateDirector LoansBorrowingsTotal non-derivativesBetween 1 and 2 years-264,454264,454Remaining contractual maturities603,726458,713264,45432,2671,359,160Over 5 years-1 year or less

286、603,726458,71332,2671,094,706Weighted average interest rate%-%-%3.00%6.70%Between 2 and 5 years-Consolidated-2017Non-derivativesNon-interest bearingTrade payablesOther payablesInterest-bearing-fixed rateDirector LoansTotal non-derivativesBetween 1 and 2 years-253,048253,048Remaining contractual matu

287、rities546,133360,250253,0481,159,431Over 5 years-1 year or less546,133360,250906,383Weighted average interest rate%-%-%3.00%Between 2 and 5 years-Consolidated-2016Accumulated losses at the beginning of the year 8,749,534 5,028,568Loss for the year 3,838,180 3,720,966Accumulated losses at the end of

288、the year 12,587,714 8,749,5342016$2017$Short-term employee benefits 1,064,927 1,067,391Post-employment benefits 86,273 86,342 1,151,200 1,153,7332016$2017$medlab.coINNOVATION-QUALITY-LIFE SCIENCES 42 NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2017NOTE 27 RELATED PARTY TRANSACTIONSPa

289、rent entityMedlab Clinical Limited is the parent entity.SubsidiariesInterests in subsidiaries are set out in Note 23.Key management personnelDisclosures relating to key management personnel are set out in Note 26 and the remuneration report in the directors report.Transactions with related partiesTh

290、e following transactions occurred with related parties:NOTE 28 EARNINGS PER SHAREPayment for goods and services:Payment for taxation services from Hall Chadwick(director-related entity of Drew Townsend)17,000 13,000 Receivable from and payable to related partiesThe following balances are outstanding

291、 at the reporting date in relation to transactions with related parties:-Loans to/from related parties:Loans from Sean Hall 264,454 253,0482016$2017$Loss for the year 3,838,180 3,720,966Non-controlling interest(180,536)(227,883)Loss attributable to the owners of Medlab Clinical Limited 3,657,644 3,4

292、93,083 Number NumberWeighted average number of ordinary shares used in calculating basic earnings per share 176,140,121 159,736,285Adjustments for calculation of diluted earnings per share:-Options over ordinary shares 8,141,120 4,362,339Weighted average number of ordinary shares used in calculating

293、 diluted earnings per share 184,281,241 164,098,624 Cents CentsBasic earnings per share(2.08)(2.19)Diluted earnings per share(1.98)(2.13)2016$2017$medlab.coINNOVATION-QUALITY-LIFE SCIENCES 43 NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2017NOTE 29 SEGMENT REPORTINGIdentification of r

294、eportable operating segmentsThe consolidated entity is organised into two operating segments based on pharmaceutical research and nutraceutical sales.These operating segments are based on the internal reports that are reviewed and used by the Board of Directors(who areidentified as the Chief Operati

295、ng Decision Makers(CODM)in assessing performance and in determining the allocation ofresources.There is no aggregation of operating segments.The CODM reviews EBITDA(earnings before interest,tax,depreciation and amortisation).The accounting policies adopted forinternal reporting to the CODM are consi

296、stent with those adopted in the financial statements.The information reported to the CODM is on a monthly basis.Operating segment informationRevenueSales to external customersIntersegment salesTotal sales revenue Other revenueTotal segment revenueIntersegment eliminationsUnallocated revenue:Interest

297、 revenueTotal revenueEBITDADepreciation and amortisation Interest revenueFinance costsLoss before income tax expenseIncome tax expenseLoss after income tax expenseAssetsSegment assetsIntersegment eliminationsUnallocated assets:Cash and cash equivalentsTotal assetsLiabilitiesSegment liabilitiesInters

298、egment eliminationsUnallocated liabilities:LoansTotal liabilities3,290,926-3,290,9261,105,3254,396,25150,2824,446,533(3,761,911)(110,408)50,282(16,143)(3,838,180)-(3,838,180)3,199,954-1,497,6004,697,5541,382,611-264,4541,647,06518,000-18,0001,105,3251,123,325(1,056,523)1,351,260389,5593,272,926-3,27

299、2,926-3,272,926(2,705,388)1,848,694993,052Total$PharmaceuticalResearch$Nutraceutical$Consolidated 2017medlab.coINNOVATION-QUALITY-LIFE SCIENCES 44 NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2017NOTE 29 SEGMENT REPORTING(CONTINUED)RevenueSales to external customersIntersegment salesT

300、otal sales revenue Other revenueTotal segment revenueIntersegment eliminationsUnallocated revenue:Interest revenueTotal revenueEBITDADepreciation and amortisation Interest revenueFinance costsLoss before income tax expenseIncome tax expenseLoss after income tax expenseAssetsSegment assetsIntersegmen

301、t eliminationsUnallocated assets:Cash and cash equivalentsTotal assetsLiabilitiesSegment liabilitiesIntersegment eliminationsUnallocated liabilities:LoansTotal liabilities1,721,140-1,721,140847,1672,568,307-51,8112,620,118(3,630,577)(125,905)51,811(16,295)(3,720,966)-(3,720,966)2,464,603-801,3683,26

302、5,9711,121,259253,0481,374,307219,137-219,137839,1921,058,329(1,163,297)1,185,105320,0201,502,003-1,502,0037,9751,509,978(2,467,280)1,279,498801,239Total$PharmaceuticalResearch$Nutraceutical$Consolidated 2016medlab.coINNOVATION-QUALITY-LIFE SCIENCES 45 DIRECTORS DECLARATIONThe directors of the compa

303、ny declare that:1.The financial statements and notes,as set out on pages 19 to 44;a.Comply with the Corporations Act 2001,the Accounting Standards,the Corporations Regulations 2001 and other mandatory professional reporting requirements;b.Comply with International Financial Reporting Standards as is

304、sued by the International Accounting Standards Board as described in Note 1 to the financial statements;andc.Give a true and fair view of the companys financial position as at 30 June 2017 and of its performance for the year ended on that date in accordance with the accounting policies described in

305、Note 1 to the financial statements.2.In the directors opinion,there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.The directors have been given the declarations required by section 295A of the Corporations Act 2001.This decla

306、ration is made in accordance with a resolution of the Board of Directors:S HallD TownsendDirectorDirectorDated this 31st day of August 2017medlab.coINNOVATION-QUALITY-LIFE SCIENCES 49 SHAREHOLDER INFORMATIONSHAREHOLDER INFORMATIONThe shareholder information set out below was applicable as at 22 Augu

307、st 2017.Distribution of equitable securitiesAnalysis of number of number of equitable security holders by size of holding:Equity security holdersTop 20 quoted equity security holdersThe holders of the Top 20 security holders of equity securities are listed below:Number ofholders ofordinary shares1 t

308、o 1,000 3071,001 to 5,000 6185,001 to 10,000 32410,001 to 100,000 459100,001 and over 77 1,785%of totalshares issuedSean Michael Hall Farjoy Pty Ltd FIT Investments Pty Ltd HSBC Custody Nominees(Australia)Limited Realm Group Pty Ltd Citicorp Nominees Pty Ltd Richard Albarran DJ Fairfull Pty Ltd Rola

309、y Pty Ltd Acron Holdings Pty Ltd Morgan Stanley Australia Securities(Nominee)Pty Ltd United Trolley Collections Pty Ltd Rolay Pty Ltd David Kenney Washington H Soul Pattison Pty Ltd Legend Developments Pty Ltd L&S Investments(Aust)Pty Ltd Sean KerridgeBNP Parabas Nominees Pty LtdLesral Pty Ltd 31.20

310、%9.48%6.90%6.31%5.88%4.30%3.11%2.36%2.10%1.97%1.73%1.68%1.01%0.84%0.76%0.62%0.62%0.55%0.50%0.47%82.39%55,755,55516,946,66612,334,44511,269,17210,500,0007,684,5995,555,5534,208,5913,750,0003,524,8203,097,6023,000,0001,805,5531,500,0001,365,5111,111,1111,111,110990,000893,161833,333147,236,782NumberHe

311、ldOrdinary Sharesmedlab.coINNOVATION-QUALITY-LIFE SCIENCES 50 Unquoted equity securitiesSubstantial ShareholdersOptions over ordinary shares issued:Number ofholdersNumberHeld512,541,725%of totalshares issuedSean Michael HallFarjoy Pty LtdFIT Investments Pty Ltd HSBC Custody Nominees(Australia)Limite

312、dRealm Group Pty Ltd31.20%9.48%6.90%6.31%5.88%55,755,55516,946,66612,334,44511,269,17210,500,000NumberHeldOrdinary Sharesmedlab.coINNOVATION-QUALITY-LIFE SCIENCES 51 CORPORATE DIRECTORYDirectors:Michael HallSean HallDrew TownsendCompany Secretary:Alan DworkinNotice of Annual General Meeting:The deta

313、ils of the annual general meeting of Medlab Clinical Limited are:Hall Chadwick40/2 Park StreetSydney NSW 200010:00 am on Friday 10 November 2017Registered Office:66 McCauley StreetAlexandria NSW 2015Principal Place of Business:66 McCauley StreetAlexandria NSW 2015Share Registry:Advanced Share Regist

314、ry110 Stirling HighwayNedlands WA 6009Auditors:ESV Accounting and Business AdvisorsLevel 18City Centre55 Market StreetSydney NSW 2000Solicitors:Sparke Helmore LawyersLevel 29MLC Centre19 Martin PlaceSydney NSW 2000Patent Attorneys:Davies Collison Cave255 Elizabeth StreetSydney NSW 2000Bank:Commonwea

315、lth Bank Australia LimitedSecurities Exchange Listing:Medlab Clinical Limited shares are listed on the Australian Securities Exchange(ASX:MDC)Website:www.medlab.coCorporate Governance Statement:http:/www.medlab.co/investor/corporate- Medlab Clinical Ltd 2017Address 66 McCauley Street,Alexandria NSW 2015Tollfree 1300 369 570Phone+61 2 8188 0311Fax+61 2 9699 3347Email hellomedlab.coWeb medlab.co