SciDev Limited (SDV) 2017年年度報告「ASX」.pdf

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1、 SciDev Ltd 2017 Annual Report Contents Page Letter from the Chairman and Managing Director 2 Directors Report 3 Auditors Independence Declaration 13 Consolidated Statement of Profit or Loss and other Comprehensive Income 14 Consolidated Statement of Financial Position 15 Consolidated Statement of C

2、hanges in Equity 16 Consolidated Statement of Cash Flows 17 Notes to the Financial Statements 18 Directors Declaration 46 Independent Auditors Report 47 Schedule of Tenements 51 Shareholder Information 51 Corporate Directory 53 SciDev Ltd 2017 Annual Report 2 Letter from the Chairman and Managing Di

3、rector 25 October 2017 Dear SciDev Shareholder,This is SciDev Limiteds(SciDev or the Company)sixteenth Annual Report since listing on the Australian Securities Exchange(ASX)and includes the audited financial statements for the financial year ending 30 June 2017.The period has been one of growth and

4、achievement for the Company.During the 2016/17 year,the Company recorded a 35%increase in revenue to$1.925 million due to higher chemical sales and OptiFlox System leasing fees.However,the Company recorded a loss after tax of$0.597 million,which was higher than the loss after tax of$0.458 million fo

5、r the previous corresponding period due to several factors including higher depreciation charges,higher raw material costs and higher professional fees.Cash outflows from operating activities were$0.225 million,which were principally due to higher customer sales represented a material improvement fr

6、om the prior year at($0.541 million).The 2016/17 year marked a steep change for the Company,both from an operational and corporate standpoint.Following a successful share placement and share purchase plan,Intec Ltd moved to 100%ownership of Science Developments Pty Ltd(Science Developments)by exerci

7、sing its option to acquire the 50%of shares it did not previously own.Intec Ltd was subsequently renamed SciDev Ltd following the transaction,with the name change approved by Shareholders at the Extraordinary General Meeting held on 25 January 2017.SciDev secured a number of significant contract win

8、s during FY2017,including the installation of an OptiFlox System at Peabody Energys 12Mtpa Wilpinjong Mine in New South Wales.The installation followed a successful six-month trial,which contributed to the design of the Mark-2 version of the OptiFlox System.Additionally,the Company deployed the firs

9、t OptiFlox System in the Australian dairy industry,with the deployment at a production facility owned by industry leader Lion Dairy and Drinks(Lion).This marks a significant achievement for the Company,as its technology is now being implemented in both the coal and dairy industries.The commercialisa

10、tion of the OptiFlox System was greatly assisted by entering into an exclusive manufacturing and customer agreement with Burkert Fluid Control Systems(Burkert).Burkert,a world leading manufacturer of measure and control systems for liquids and gases,worked with SciDev for around 18 months prior to t

11、he agreement to develop the OptiFlox System to a commercial ready stage.During the financial year,SciDev retained 100%ownership of the Zeehan zinc slag dump in Tasmania,with the Company consolidating two leases held over the slag dump into one mining lease.The Board and Management continue to explor

12、e opportunities,on both a corporate and operational level,to realise the value of the asset and look forward to updating the market as these opportunities come to fruition.During the year the Company progressed several research and development initiatives,focussing principally on additional applicat

13、ions of the OptiFlox technology in the coal industry.SciDev is confident that the OptiFlox System can be effectively utilised in other areas of a coal preparation plant in addition to the tailings thickener.These include de-watering operations such as belt-presses,coal thickeners and flotation opera

14、tions.The key objectives for the current financial year are as follows:Installations/trials of additional OptiFlox Systems in the Australian coal and dairy industries;The progression of opportunities in overseas markets,such as North America;A better understanding of the applicability of OptiFlox Te

15、chnology;and Value realisation from the Zeehan Zinc Project in Tasmania.As announced on 1 March 2017,Robert Waring resigned as SciDevs Company Secretary.We would like to take this opportunity to thank Robert for his contribution and wish him well in all his future endeavours.The Board is also please

16、d to welcome Heath Roberts as our new Company Secretary,who brings extensive experience from his work in the legal profession,and will contribute his significant expertise around equity markets.We would also like to thank shareholders for their ongoing support and commitment.We look forward to updat

17、ing you on our endeavours and achievements throughout this financial year.Yours sincerely,Trevor Jones Kieran Rodgers Chairman Managing Director SciDev Ltd 2017 Annual Report 3 Directors Report The directors present their report,together with the financial statements,on the consolidated entity(refer

18、red to hereafter as the consolidated entity)consisting of SciDev Limited(referred to hereafter as the Company or SciDev)and the entities it controlled at the end of,or during,the year ended 30 June 2017.At an Extraordinary General Meeting held on 25 January 2017,a resolution to change the name of th

19、e company to SciDev Limited was approved by shareholders.Directors The following persons were directors of SciDev Limited during the whole of the financial year and up to the date of this report,unless otherwise stated:Trevor A Jones Kieran G Rodgers Daniel(Don)Joseph Cronin Principal activities The

20、 principal activity of the Group is the manufacture and supply of organic chemicals for industrial wastewater treatment.Dividends There were no dividends paid,recommended or declared during the current or previous financial year.Review of operations During FY2017,the Company recorded a net loss afte

21、r tax of$0.597 million,compared to a loss after tax of$0.458 million for the previous corresponding period.Net cash flows from operating activities in FY2017 were($0.225 million)compared with($0.541 million)for the prior year.Operational progress The Company agreed to an exclusive manufacturing and

22、customer agreement with Burkert Fluid Control Systems(Burkert)for the development and fabrication of the OptiFlox System.Following the Companys successful six-month trial at Peabody Energys(Peabody)12mtpa Wilpingjong mine,Burkert assisted in the design of the OptiFlox System Mark-2 System.The Mark-2

23、 System is materially smaller in size,but boasts enhanced reporting and operating capabilities.Following the trial and the development of the OptiFlox System Mark-2 System,the Company secured a two-year contract for the supply of a system and associated chemicals at the aforementioned Peabody site.T

24、he total contract value is estimated at between$350,000-$400,000 per annum and will see Peabody pay a monthly leasing fee for the use of the system,together with the purchase of associated waste-water treatment chemicals.During the financial year the Company broadened the industry footprint of the O

25、ptiFlox System following its deployment at a major Australian dairy processing facility operated by Lion Dairy&Drinks(Lion).The deployment of the system followed an initial purchase order for a 12-month period.Lion has been a longstanding customer of SciDev and this commercial arrangement,similar to

26、 the arrangement with Peabody,will provide for the receipt of monthly payments for the use of the OptiFlox System as well as concurrent chemical sales.The agreements secured with both Peabody Energy and Lion during the financial year are validation of the Companys strategy in leveraging its customer

27、 base for wastewater treatment chemicals to extend its sales pipeline for the OptiFlox System.The Board and management remain confident that the upcoming financial year additional OptiFlox Systems will be deployed in both the coal and dairy sectors,further validating its technology and waste water c

28、hemical product suite.SciDev Ltd 2017 Annual Report 4 Corporate activities The Company witnessed significant progression during FY2017 through the completion of a successful Share Placement(Placement)and Share Purchase Plan(SPP)and the acquisition of the additional 50%of Science Developments Pty Ltd

29、(Science Developments).The placement,which raised$1.5 million through the issue of 125 million new shares at an issue price of$0.012 per share to professional and sophisticated investors,was completed in January 2017.The placement was carried out in two stages,the first stage of approximately 45 mil

30、lion shares to raise$0.54 million occurred on 19 December 2016 while the second stage,the issue of around 80 million shares to raise$0.96 million,was finalised shortly afterwards.Three of the Companys Directors took part in the Placement for an aggregate amount of$60,000.To allow Company shareholder

31、s to participate in capital raising activities a Share Purchase Plan(SPP)was also announced during the period.The SPP was conducted on the same terms as the placement with an aim to raise$0.6 million.The Company was pleased to announce the SPP was heavily oversubscribed with applications received am

32、ounting to$1,387,396.The SPP was underwritten to an amount of$0.5 million by Taylor Collison Limited.The funds raised from the SPP and Placement were used to exercise Intec Ltds option to acquire the additional 50%of Science Developments.The transaction,which was completed on 27 February 2017,saw In

33、tec Ltd assume 100%control of the business,with the Company renamed SciDev Ltd subsequent to the transaction.The consideration paid for the exercise of the option totalled$0.9 million and comprised of$0.66 million in cash,as well as the issue of 20 million fully-paid ordinary shares at a deemed issu

34、e price of$0.012 per share to Paul Pembroke,the Technical Director of Science Developments.Zeehan Slag Dump,Tasmania The Company has maintained its ownership over the Zeehan Slag Dump and recently consolidated its two granted mining leases over the slag dump into one mining lease.Throughout the peri

35、od,management has been assessing several options to generate value from its ownership of the asset.These include the direct sale of material,blending strategies and Australian based beneficiation processes to realise value for shareholders.Outlook The Company remains positive that the previous finan

36、cial year has set a strong foundation for growth over the coming period.The focus for the upcoming financial year will be as follows:Installations/trials of additional OptiFlox Systems in the Australian coal industry;Installations/trials of additional OptiFlox Systems in the Australian dairy industr

37、y;The progression of opportunities in overseas markets,such as North America;A better understanding of the applicability of OptiFlox Technology across other industries;Value realisation from the Zeehan slag dump in Tasmania;and Further R&D to enhance the Companys manufacturing capabilities.Significa

38、nt changes in the state of affairs Significant changes in the state of affairs of the group during the financial year were as follows.Issued capital increased by$2,031,313(from$71,641,977 to$73,673,290)as the result of a share placement,share purchase plan and the issue of shares to acquire the rema

39、ining 50%in Science Developments Pty Ltd.Details of the changes in issued capital are disclosed in note 19 to the financial statements.SciDev Ltd 2017 Annual Report 5 On 27 February 2017,the company exercised its option to acquire the remaining 50%of Science Developments Pty Ltd.The consideration pa

40、id for the exercise of the option amounted to$900,000 and was comprised of$660,000 in cash and the issue of 20 million fully paid ordinary shares in the company.Science Developments Pty Ltd is now a wholly owned subsidiary of the company.There were no other significant changes in the state of affair

41、s of the consolidated entity during the financial year.Matters subsequent to the end of the financial year On 14 August 2017,the company issued 6.5 million unquoted options to executives and staff(not Directors).The options were granted under the SciDev Ltd Employee Share Scheme.The options have an

42、exercise price of$0.025 and an expiry date of 28 November 2019.No other matter or circumstance has arisen since 30 June 2017 that has significantly affected,or may significantly affect the consolidated entitys operations,the results of those operations,or the consolidated entitys state of affairs in

43、 future financial years.Likely developments and expected results of operations Information on likely developments in the operations of the consolidated entity and the expected results of operations have not been included in this report because the directors believe it would be likely to result in un

44、reasonable prejudice to the consolidated entity.Going concern The consolidated entity generated an operating loss after income tax of$597,340(2016:$458,130)and net cash outflows from operations of$225,298(2016:$541,397)in the year ended 30 June 2017.At 30 June 2017,the consolidated entity had net as

45、sets of$2,461,700(2016:$1,766,899)and cash balances of$938,714(2016:$478,089).These matters give rise to a material uncertainty that may cast doubt whether the consolidated entity can continue as a going concern and realise its assets and extinguish its liabilities in the ordinary course of business

46、 and at amounts stated in the financial statements.The continuing viability of the consolidated entity and its ability to continue as a going concern and meet its debts and commitments as and when they fall due are dependent upon the consolidated entity being successful in the following:Commercialis

47、ation of the Optiflox System with resultant increased product sales and technology leasing fees;The raising sufficient capital by way of either additional debt and/or equity capital;and The receipt of proceeds from the sale of non-core assets.The Directors are of the opinion that sufficient addition

48、al funding will be secured and are themselves likely to participate in any future equity capital raising.The financial report has therefore been prepared on the basis of a going concern.This basis presumes that funds from the above sources will be available to finance future operations,and to repay

49、liabilities and that the realisation of assets and settlement of liabilities will occur in the normal course of business.However,the Directors note that if sufficient funds are not raised through the above-mentioned sources,the going concern basis may not be appropriate with the result that the grou

50、p may have to realise its assets and extinguish its liabilities other than in the ordinary course of business and in amounts different from those stated in the financial report.The companys auditor has,without qualifying their audit opinion,included an emphasis of matter paragraph in their audit rep

51、ort which draws attention to the aforementioned uncertainty regarding going concern.Environmental regulation The consolidated entity is not subject to any significant environmental regulation under Australian Commonwealth or State law.SciDev Ltd 2017 Annual Report 6 Information on directors Name:Tre

52、vor A Jones Title:Chairman Qualifications:B.Comm.(Melb)Experience and expertise:Mr.Jones has spent over 30 years working in the finance industry in Australia,UnitedKingdom and the USA.During this time,he has held senior executive positions ininvestment funds management,stockbroking and corporate fin

53、ance,and gained abroad experience of capital structuring and capital raising,particularly in the miningsector.Mr.Jones was manager of equity portfolios for Shell Australia and NationalEmployers Mutual in the United Kingdom.He was a Director of County NatWestSecurities Australia Limited in London and

54、 then Director of Corporate Finance withWestpac Institutional Bank in Sydney.More recently Mr.Jones was the Sydney ChiefExecutive for Melbourne-based Austock Group and was Chairman of both itsCorporate Finance and Investment Management divisions.He was appointed as a Non-executive Director of SciDev

55、 on 28 February 2007.Other current directorships:None Former directorships(last 3 years):None Special responsibilities:Chairman of the Corporate Governance Committee and a member of the Audit Committee and the Nomination and Remuneration Committee Interests in shares:5,742,331 Interests in options:1

56、,000,000 Name:Kieran G Rodgers Title:Managing Director Qualifications:B.E.(Hons.)Min.(UNSW),M.B.A.(IMD)Experience and expertise:Mr.Rodgers joined SciDev in March 2001 after 13 years of experience in merchantbanking and financial consulting,principally at Resource Finance Corporation Ltd,which specif

57、ically focused on the Australian and international resources industry.He was appointed as an Executive Director of SciDev on 28 February 2007.Mr.Rodgerswas appointed Managing Director on 6 February 2012.Other current directorships:None Former directorships(last 3 years):None Special responsibilities

58、:Managing Director and member of the Corporate Governance Committee Interests in shares:23,516,577 Interests in options:2,000,000 Name:Daniel J Cronin Title:Non-executive Director Qualifications:B.E.(Uni.College,Cork)M.Sc.(Southampton),MBA(LBS)Experience and expertise:Mr.Cronin was appointed to the

59、Board of SciDev on 26 November 2013.Mr.Croninbegan his career as an Engineer with the British consulting firm Halcrow,workingfor 6 years in the UK and South America.This was followed by 5 years working in project management with the construction Company Gammon in Hong Kong andSingapore.Following com

60、pletion of an MBA degree,he was employed in the chemicalindustry for 23 years,initially with Sandoz and later with Degussa and BASF.He has worked in senior general management roles in Zurich,Sydney and Singapore.Hismost recent position was Senior Vice President Construction Chemicals for BASFwith re

61、sponsibility for Europe,Middle East and Africa.Other current directorships:None Former directorships(last 3 years):None Special responsibilities:Chairman of the Audit Committee and a member of the Corporate GovernanceCommittee and the Nomination and Remuneration Committee Interests in shares:4,659,5

62、54 Interests in options:2,000,000 Other current directorships quoted above are current directorships for listed entities only and excludes directorships of all other types of entities,unless otherwise stated.Former directorships(last 3 years)quoted above are directorships held in the last 3 years fo

63、r listed entities only and excludes directorships of all other types of entities,unless otherwise stated.SciDev Ltd 2017 Annual Report 7 Company secretary Mr Robert J Waring(B.Ec.(Syd),C.A.,F.C.I.S.,F.Fin.,F.A.I.C.D,MAusIMM)was appointed to the position of Company Secretary of SciDev Limited in Dece

64、mber 1998 and resigned on 1 March 2017.Mr Waring has over 40 years experience in financial and corporate roles including over 20 years in Company secretarial roles for ASX-listed companies and 18 years as a Director of ASX-listed companies.He is a Director of Oakhill Hamilton Pty Ltd,which provides

65、secretarial and corporate advisory services to a range of listed and unlisted companies.Mr Heath L Roberts(Dip Law(S.A.B.)and Grad Dip Legal Practice(UTS)was appointed to the position of Company Secretary of SciDev Limited on 1 March 2017.Mr Roberts is a commercial solicitor with over 20 years of li

66、sted company experience.He has acted for SciDev in various capacities over the years and brings strong transactional,compliance and capital raising experience to the role.Meetings of directors The number of meetings of the companys Board of Directors(the Board)and of each Board committee held during

67、 the year ended 30 June 2017,and the number of meetings attended by each director were:Full Board Audit Committee Attended Held Attended Held Trevor A Jones 8 8 2 2 Kieran G Rodgers 8 8 -Daniel J Cronin 8 8 2 2 Held:represents the number of meetings held during the time the director held office or w

68、as a member of the relevant committee.Remuneration report(audited)The remuneration report details the key management personnel remuneration arrangements for the consolidated entity,in accordance with the requirements of the Corporations Act 2001 and its Regulations.Key management personnel are those

69、 persons having authority and responsibility for planning,directing and controlling the activities of the entity,directly or indirectly,including all directors.The remuneration report is set out under the following main headings:Principles used to determine the nature and amount of remuneration Deta

70、ils of remuneration Service agreements Share-based compensation Additional information Additional disclosures relating to key management personnel Principles used to determine the nature and amount of remuneration The objective of the consolidated entitys executive reward framework is to ensure rewa

71、rd for performance is competitive and appropriate for the results delivered.The framework aligns executive reward with the achievement of strategic objectives and the creation of value for shareholders,and it is considered to conform to the market best practice for the delivery of reward.The Board o

72、f Directors(the Board)ensures that executive reward satisfies the following key criteria for good reward governance practices:competitiveness and reasonableness;acceptability to shareholders;performance linkage/alignment of executive compensation;transparency;and capital management.The Group has str

73、uctured an executive remuneration framework that is market competitive.The framework provides for a mix of fixed pay and also variable pay and includes long term incentives,when appropriate.There is no defined relationship between Company performance and remuneration at this point in time.However,th

74、e matter is under continual review.The fixed proportion of remuneration is currently 100%.The Board has established a nomination and remuneration committee which provides advice on remuneration and incentive policies and practices and makes specific recommendations on remuneration packages and other

75、 terms of employment for the Managing Director,other senior executives and Non-Executive Directors.The Corporate Governance Statement provides further information on the role of this Committee.SciDev Ltd 2017 Annual Report 8 Non-executive directors remuneration Fees and payments to the Non-Executive

76、 Directors reflect the demands which are made on,and the responsibilities of,the NonExecutive Directors.The Board undertakes a review of Non-Executive Directors fees and payments annually.Non-Executive Directors fees are determined within an aggregate Non-Executive Directors cash remuneration limit,

77、which is periodically recommended for approval by shareholders.The current limit of$400,000 was approved by shareholders at the 2007 Annual General Meeting held on 14 November 2007.The amount paid to non-executive directors of the parent entity(SciDev Limited)during the year to 30 June 2017 was$114,

78、444(2016:$114,444).In addition,Non-Executive Directors are able to participate in issues of options pursuant to the SciDev Employee Share Scheme.The value of any options granted to Non-Executive Directors are not included in the aggregate cash remuneration limit as they are not cash based payments.E

79、xecutive remuneration The executive pay and reward framework has two components,which together comprise the executives total remuneration:base pay,superannuation and non-monetary benefits;and long term incentives through participation in the SciDev Employee Share Scheme.The combination of these comp

80、rises the executives total remuneration.Base pay Base pay is structured as a total employment cost package,which may be delivered as a combination of cash and prescribed non-financial benefits at the executives discretion.Executives are offered a competitive base pay that comprises a fixed component

81、 of cash salary and superannuation.Base pay for each senior executive is reviewed annually to ensure the executives pay is competitive with the market.There is no guaranteed base pay increase included in any executives contract.SciDev Employee Share Scheme Information on the Intec Employee Share Sch

82、eme is set out in note 36.Participation in the SciDev Employee Share Scheme is at the discretion of the Board and there is no guarantee of annual participation by any executive.Use of remuneration consultants The company did not engage remuneration consultants during the financial year ended 30 June

83、 2017.Voting and comments made at the companys 30 November 2016 Annual General Meeting(AGM)At the 30 November 2016 AGM,98.99%of the votes received supported the adoption of the remuneration report for the year ended 30 June 2016.The company did not receive any specific feedback at the AGM regarding

84、its remuneration practices.Details of remuneration Amounts of remuneration Details of the remuneration of key management personnel of the consolidated entity are set out in the following tables.The key management personnel of the consolidated entity consisted of the following directors of SciDev Lim

85、ited:Trevor A Jones-Non-executive Chairman Daniel J Cronin-Non-executive Director Kieran G Rodgers-Managing Director Short-term benefits Post-employment benefits Long-term benefits Cash salary Consulting Non-Super-Long service and fees fees monetary annuation leave Total 2017$Non-Executive Directors

86、:Trevor A Jones(Chairman)69,444 -6,597 -76,041 Daniel J Cronin 45,000 2,000 -4,275 -51,275 Executive Directors:Kieran G Rodgers 215,000 -27,128 20,425 9,137 271,690 329,444 2,000 27,128 31,297 9,137 399,006 SciDev Ltd 2017 Annual Report 9 Short-term benefits Post-employment benefits Cash salary Cons

87、ulting Non-Super-and fees fees monetary annuation Total 2016$Non-Executive Directors:Trevor A Jones(Chairman)69,444 -6,597 76,041 Daniel J Cronin 45,000 7,000 -4,275 56,275 Executive Directors:Kieran G Rodgers 215,000 -16,329 20,425 251,754 329,444 7,000 16,329 31,297 384,070 The proportion of remun

88、eration linked to performance and the fixed proportion are as follows:Fixed remuneration At risk-STI At risk-LTI Name 2017 2016 2017 2016 2017 2016 Non-Executive Directors:Trevor A Jones(Chairman)100%100%-Daniel J Cronin 100%100%-Executive Directors:Kieran G Rodgers 100%100%-Service agreements Remun

89、eration and other terms of employment for key management personnel are formalised in service agreements.Details of these agreements are as follows:Name:Kieran G Rodgers Title:Managing Director Agreement commenced:1 March 2015 Term of agreement:3 years Details:Base salary for the year ended 30 June 2

90、016 of$215,000 plus superannuation,tobe reviewed annually by the Nomination and Remuneration Committee.The contract may be terminated by 6 months notice from either party.Key management personnel have no entitlement to termination payments in the event of removal for misconduct.Share-based compensat

91、ion Issue of shares There were no shares issued to directors and other key management personnel as part of compensation during the year ended 30 June 2017.Options There were no options over ordinary shares granted to or vested by directors and other key management personnel as part of compensation d

92、uring the year ended 30 June 2017.Details of options over ordinary shares that lapsed for directors and other key management personnel during the year ended 30 June 2017 are set out below:Number of Number of options options Name Grant date Vesting date granted lapsed Trevor A Jones 9 December 2011 2

93、1 November 2016 400,000 400,000 Kieran G Rodgers 9 December 2011 21 November 2016 1,200,000 1,200,000 SciDev Ltd 2017 Annual Report 10 Additional information The earnings of the consolidated entity for the five years to 30 June 2017 are summarised below:2017 2016 2015 2014 2013$Sales revenue 1,846,9

94、85 1,352,346 1,316,493 911,740 308,315 Loss after income tax (597,340)(458,130)(856,446)(1,261,134)(2,626,224)Additional disclosures relating to key management personnel Shareholding The number of shares in the company held during the financial year by each director and other members of key manageme

95、nt personnel of the consolidated entity,including their personally related parties,is set out below:Balance at Received Balance at the start of as part of Disposals/the end of the year remuneration Additions other the year Ordinary shares Trevor A Jones 2,832,777 -2,909,554 -5,742,331 Kieran G Rodge

96、rs 20,004,623 -3,511,954 -23,516,577 Daniel J Cronin 3,000,000 -1,659,554 -4,659,554 25,837,400 -8,081,062 -33,918,462 Option holding The number of options over ordinary shares in the company held during the financial year by each director and other members of key management personnel of the consoli

97、dated entity,including their personally related parties,is set out below:Balance at Expired/Balance at the start of forfeited/the end of the year Granted Exercised other the year Options over ordinary shares Trevor A Jones 1,400,000 -(400,000)1,000,000 Kieran G Rodgers 3,200,000 -(1,200,000)2,000,00

98、0 Daniel J Cronin 2,000,000 -2,000,000 6,600,000 -(1,600,000)5,000,000 Balance at Vested and Vested and the end of exercisable unexercisable the year Options over ordinary shares Trevor A Jones 1,000,000 -1,000,000 Kieran G Rodgers 2,000,000 -2,000,000 Daniel J Cronin 2,000,000 -2,000,000 5,000,000

99、-5,000,000 Loans to key management personnel and their related parties There were no loans owing by key management personnel of the group,including their close family members and entities related to them,during the financial year ended 30 June 2017.Other transactions with key management personnel an

100、d their related parties There were no other transactions with key management personnel of the group,including their close family members and entities related to them,during the financial year ended 30 June 2017.This concludes the remuneration report,which has been audited.SciDev Ltd 2017 Annual Repo

101、rt 11 Shares under option Unissued ordinary shares of SciDev Limited under option at the date of this report are as follows:Exercise Number Grant date Expiry date price under option 10 December 2014*28 November 2019$0.025 5,500,000 2 February 2017*28 November 2019$0.025 22,500,000 14 August 2017*28

102、November 2019$0.025 6,500,000 34,500,000 *Options granted to employees under the SciDev Employee Share Scheme*Options granted to the Lead Manager and Underwriter for services rendered in connection with the placement of shares and a share purchase plan*Options granted to executives and staff under t

103、he SciDev Employee Share Scheme No person entitled to exercise the options had or has any right by virtue of the option to participate in any share issue of the company or of any other body corporate.No options were granted to the directors or any of the five highest remunerated officers of the comp

104、any since the end of the financial year.Shares issued on the exercise of options There were no ordinary shares of SciDev Limited issued on the exercise of options during the year ended 30 June 2017 and up to the date of this report.Indemnity and insurance of officers The company has indemnified the

105、directors and executives of the company for costs incurred,in their capacity as a director or executive,for which they may be held personally liable,except where there is a lack of good faith.During the financial year,the company paid a premium in respect of a contract to insure the directors and ex

106、ecutives of the company against a liability to the extent permitted by the Corporations Act 2001.The contract of insurance prohibits disclosure of the nature of the liability and the amount of the premium.Indemnity and insurance of auditor The company has not,during or since the end of the financial

107、 year,indemnified or agreed to indemnify the auditor of the company or any related entity against a liability incurred by the auditor.During the financial year,the company has not paid a premium in respect of a contract to insure the auditor of the company or any related entity.Proceedings on behalf

108、 of the company No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the company,or to intervene in any proceedings to which the company is a party for the purpose of taking responsibility on behalf of the company for all or pa

109、rt of those proceedings.Non-audit services Details of the amounts paid or payable to the auditor for non-audit services provided during the financial year by the auditor are outlined in note 26 to the financial statements.The directors are satisfied that the provision of non-audit services during th

110、e financial year,by the auditor(or by another person or firm on the auditors behalf),is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001.SciDev Ltd 2017 Annual Report 12 The directors are of the opinion that the services as disclosed in note 26 t

111、o the financial statements do not compromise the external 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 andobjectivity of the auditor;and none of the ser

112、vices undermine the general principles relating to auditor independence as set out in APES 110 Codeof Ethics for Professional Accountants issued by the Accounting Professional and Ethical Standards Board,includingreviewing or auditing the auditors own work,acting in a management or decision-making c

113、apacity for the company,acting as advocate for the company or jointly sharing economic risks and rewards.Officers of the company who are former partners of Rothsay Chartered Accountants There are no officers of the company who are former partners of Rothsay Chartered Accountants.Auditors independenc

114、e declaration A copy of the auditors independence declaration as required under section 307C of the Corporations Act 2001 is set out immediately after this directors report.Auditor Rothsay Chartered Accountants continues in office in accordance with section 327 of the Corporations Act 2001.This repo

115、rt is made in accordance with a resolution of directors,pursuant to section 298(2)(a)of the Corporations Act 2001.On behalf of the directors _ Kieran G Rodgers Managing Director 26 September 2017 Sydney AUDITORS INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001 As lead auditor

116、 of SciDev Limited for the year ended 30 June 2017,I declare that,to the best of my knowledge and belief,there have been:no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit;and no contraventions of any applicable code of professional condu

117、ct in relation to the audit.Rothsay Chartered Accountants Frank Vrachas Partner Sydney,26 September 2017 SciDev Ltd 2017 Annual Report The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes 14 Statement of Profit or Loss and Oth

118、er Comprehensive Income For the year ended 30 June 2017 Note 2017 2016$Revenue 5 1,925,233 1,423,072 Other income 6 243,802 351,138 Expenses Changes in inventories (46,673)22,263 Raw materials and consumables used (955,068)(780,694)Employee benefits expense (741,253)(701,317)Depreciation and amortis

119、ation expense 7 (152,193)(85,763)Engineering and other consultants expenses (157,684)(147,660)Insurance (44,081)(37,247)Listing and share registry expenses (38,635)(25,496)Professional fees (140,974)(106,167)Rent and related expenses (124,467)(105,137)Travel,accommodation and conference (90,162)(71,

120、740)Other expenses (125,012)(81,994)Finance costs 7 (26,628)(26,427)Loss before income tax expense (473,795)(373,169)Income tax expense 8 (123,545)(84,961)Loss after income tax expense for the year (597,340)(458,130)Other comprehensive income Items that may be reclassified subsequently to profit or

121、loss Gain on revaluation of other financial assets -22,465 Reclassification on disposal of available-for-sale financial assets -(40,565)Other comprehensive income for the year,net of tax -(18,100)Total comprehensive income for the year (597,340)(476,230)Loss for the year is attributable to:Non-contr

122、olling interest 84,811 22,458 Owners of SciDev Limited (682,151)(480,588)(597,340)(458,130)Total comprehensive income for the year is attributable to:Non-controlling interest 84,811 22,458 Owners of SciDev Limited (682,151)(498,688)(597,340)(476,230)Cents Cents Basic earnings per share 34 (0.18)(0.1

123、6)Diluted earnings per share 34 (0.18)(0.16)Refer to note 3 for detailed information on Restatement of comparatives.SciDev Ltd 2017 Annual Report The above statement of financial position should be read in conjunction with the accompanying notes 15 Consolidated Statement of Financial Position For th

124、e year ended 30 June 2017 Note 2017 2016 1 July 2015$Assets Current assets Cash and cash equivalents 9 938,714 478,089 926,394 Trade and other receivables 10 334,017 215,524 321,106 Inventories 11 231,839 278,040 255,777 Income tax refund due 8 -11,253 5,425 Other 1,754 1,756 -Total current assets 1

125、,506,324 984,662 1,508,702 Non-current assets Other financial assets 12 2,900 2,900 57,200 Property,plant and equipment 13 291,201 228,545 221,323 Intangibles 14 1,279,803 1,269,090 1,288,905 Total non-current assets 1,573,904 1,500,535 1,567,428 Total assets 3,080,228 2,485,197 3,076,130 Liabilitie

126、s Current liabilities Trade and other payables 15 358,410 105,136 177,754 Borrowings 16 11,957 336,491 355,466 Employee benefits 17 163,365 139,466 -Provisions -111,298 Total current liabilities 533,732 581,093 644,518 Non-current liabilities Borrowings 18 32,546 71,323 113,718 Deferred tax 8 52,250

127、 65,882 74,765 Total non-current liabilities 84,796 137,205 188,483 Total liabilities 618,528 718,298 833,001 Net assets 2,461,700 1,766,899 2,243,129 Equity Issued capital 19 73,673,290 71,641,977 71,641,977 Reserves 20 2,169,223 2,653,594 2,671,694 Accumulated losses (73,380,813)(72,698,662)(72,21

128、8,074)Equity attributable to the owners of SciDev Limited 2,461,700 1,596,909 2,095,597 Non-controlling interest 21 -169,990 147,532 Total equity 2,461,700 1,766,899 2,243,129 Refer to note 3 for detailed information on Restatement of comparatives.SciDev Ltd 2017 Annual Report The above statement of

129、 changes in equity should be read in conjunction with the accompanying notes 16 Statement of Changes in Equity For the year ended 30 June 2017 Issued Accumulated Non-controlling Total equity capital Reserves losses interest$Balance at 1 July 2015 71,641,977 2,671,694 (72,218,074)147,532 2,243,129 Pr

130、ofit/(loss)after income tax expense for the year -(480,588)22,458 (458,130)Other comprehensive income for the year,net of tax -(18,100)-(18,100)Total comprehensive income for the year -(18,100)(480,588)22,458 (476,230)Balance at 30 June 2016 71,641,977 2,653,594 (72,698,662)169,990 1,766,899 Issued

131、Accumulated Non-controlling Total equity capital Reserves losses interest$Balance at 1 July 2016 71,641,977 2,653,594 (72,698,662)169,990 1,766,899 Profit/(loss)after income tax expense for the year -(682,151)84,811 (597,340)Other comprehensive income for the year,net of tax -Total comprehensive inc

132、ome for the year -(682,151)84,811 (597,340)Transactions with owners in their capacity as owners:Contributions of equity,net of transaction costs(note 19)2,031,313 -2,031,313 Share-based payments(note 35)-160,828 -160,828 Transactions with non-controlling interests(note 32)-(645,199)-(254,801)(900,00

133、0)Balance at 30 June 2017 73,673,290 2,169,223 (73,380,813)-2,461,700 SciDev Ltd 2017 Annual Report The above statement of cash flows should be read in conjunction with the accompanying notes 17 Statement of Cash Flows For the year ended 30 June 2017 Cash flows from operating activities Receipts fro

134、m customers(inclusive of GST)1,999,539 1,671,695 Payments to suppliers and employees(inclusive of GST)(2,304,164)(2,268,673)(304,625)(596,978)Interest received 13,387 18,990 R&D tax offset received 218,492 162,690 Interest and other finance costs paid (26,628)(26,427)Income taxes paid (125,924)(99,6

135、72)Net cash used in operating activities 33 (225,298)(541,397)Cash flows from investing activities Payments for non-controlling interest in subsidiary 31 (660,000)-Payments for property,plant and equipment 13 (190,764)(58,414)Payments for intangibles 14 (52,143)-Proceeds from disposal of property,pl

136、ant and equipment -207,531 Proceeds from disposal of intangibles -(14,756)Net cash from/(used in)investing activities (902,907)134,361 Cash flows from financing activities Proceeds from issue of shares 19 2,100,000 -Share issue transaction costs (147,859)-Repayment of borrowings (363,311)(41,269)Net

137、 cash from/(used in)financing activities 1,588,830 (41,269)Net increase/(decrease)in cash and cash equivalents 460,625 (448,305)Cash and cash equivalents at the beginning of the financial year 478,089 926,394 Cash and cash equivalents at the end of the financial year 9 938,714 478,089 Note 2017 2016

138、$SciDev Ltd 2017 Annual Report 18 Notes to the Financial Statement 30 June 2017 Note 1.Significant accounting policies The principal accounting policies adopted in the preparation of the financial statements are set out either in the respective notes or below.These policies have been consistently ap

139、plied to all the years presented,unless otherwise stated.New or amended Accounting Standards and Interpretations adopted The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board(AASB)that are mandatory

140、for the current reporting period.None of the new standards and amendments to standards affected any of the amounts recognised in the current period or any prior period.Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.Going concern The

141、consolidated entity generated an operating loss after income tax of$597,340(2016:$458,130)and net cash outflows from operations of$225,298(2016:$541,397)in the year ended 30 June 2017.At 30 June 2017 the consolidated entity had net assets of$2,461,700(2016:$1,766,899)and cash balances of$938,714(201

142、6:$478,089).These matters give rise to a material uncertainty that may cast doubt whether the consolidated entity can continue as a going concern and realise its assets and extinguish its liabilities in the ordinary course of business and at amounts stated in the financial statements.The continuing

143、viability of the consolidated entity and its ability to continue as a going concern and meet its debts and commitments as and when they fall due are dependent upon the consolidated entity being successful in the following:Commercialisation of the Optiflox System with resultant increased product sale

144、s and technology leasing fees;The raising sufficient capital by way of either additional debt and/or equity capital;and The receipt of proceeds from the sale of non-core assets.The Directors are of the opinion that sufficient additional funding will be secured and are themselves likely to participat

145、e in any future equity capital raising.The financial report has therefore been prepared on the basis of a going concern.This basis presumes that funds from the above sources will be available to finance future operations,and to repay liabilities and that the realisation of assets and settlement of l

146、iabilities will occur in the normal course of business.However,the Directors note that if sufficient funds are not raised through the above-mentioned sources,the going concern basis may not be appropriate with the result that the group may have to realise its assets and extinguish its liabilities ot

147、her than in the ordinary course of business and in amounts different from those stated in the financial report.Basis of preparation These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting

148、 Standards Board(AASB)and the Corporations Act 2001,as appropriate for for-profit oriented entities.These financial statements also comply with International Financial Reporting Standards as issued by the International Accounting Standards Board(IASB).Historical cost convention The financial stateme

149、nts have been prepared under the historical cost convention,except for,where applicable,financial assets and liabilities at fair value through profit or loss.Critical accounting estimates The preparation of the financial statements requires the use of certain critical accounting estimates.It also re

150、quires management to exercise its judgement in the process of applying the consolidated entitys accounting policies.The areas involving a higher degree of judgement or complexity,or areas where assumptions and estimates are significant to the financial statements,are disclosed in note 2.Parent entit

151、y information In accordance with the Corporations Act 2001,these financial statements present the results of the consolidated entity only.Supplementary information about the parent entity is disclosed in note 30.Principles of consolidation The consolidated financial statements incorporate the assets

152、 and liabilities of all subsidiaries of SciDev Limited(company or parent entity)as at 30 June 2017 and the results of all subsidiaries for the year then ended.SciDev Limited and its subsidiaries together are referred to in these financial statements as the consolidated entity.SciDev Ltd 2017 Annual

153、Report 19 Subsidiaries are all those entities over which the consolidated entity has control.The consolidated entity controls an entity when the consolidated entity is exposed to,or has rights to,variable returns from its involvement with the entity and has the ability to affect those returns throug

154、h its power to direct the activities of the entity.Subsidiaries are fully consolidated from the date on which control is transferred to the consolidated entity.They are de-consolidated from the date that control ceases.Intercompany transactions,balances and unrealised gains on transactions between e

155、ntities in the consolidated entity are eliminated.Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred.Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the con

156、solidated entity.The acquisition of subsidiaries is accounted for using the acquisition method of accounting.A change in ownership interest,without the loss of control,is accounted for as an equity transaction,where the difference between the consideration transferred and the book value of the share

157、 of the non-controlling interest acquired is recognised directly in equity attributable to the parent.Non-controlling interest in the results and equity of subsidiaries are shown separately in the statement of profit or loss and other comprehensive income,statement of financial position and statemen

158、t of changes in equity of the consolidated entity.Losses incurred by the consolidated entity are attributed to the non-controlling interest in full,even if that results in a deficit balance.Where the consolidated entity loses control over a subsidiary,it derecognises the assets including goodwill,li

159、abilities and non-controlling interest in the subsidiary together with any cumulative translation differences recognised in equity.The consolidated entity recognises the fair value of the consideration received and the fair value of any investment retained together with any gain or loss in profit or

160、 loss.Current and non-current classification Assets and liabilities are presented in the statement of financial position based on current and non-current classification.An asset is classified as current when:it is either expected to be realised or intended to be sold or consumed in the consolidated

161、entitys normal operating cycle;it is held primarily for the purpose of trading;it is expected to be realised within 12 months after the reporting period;or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the repor

162、ting period.All other assets are classified as non-current.A liability is classified as current when:it is either expected to be settled in the consolidated entitys normal operating cycle;it is held primarily for the purpose of trading;it is due to be settled within 12 months after the reporting per

163、iod;or there is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period.All other liabilities are classified as non-current.Deferred tax assets and liabilities are always classified as non-current.Leases The determination of whether an arrang

164、ement is or contains a lease is based on the substance of the arrangement and requires an assessment of whether the fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset.A distinction is made between finance leases,wh

165、ich effectively transfer from the lessor to the lessee substantially all the risks and benefits incidental to the ownership of leased assets,and operating leases,under which the lessor effectively retains substantially all such risks and benefits.Finance leases are capitalised.A lease asset and liab

166、ility are established at the fair value of the leased assets,or if lower,the present value of minimum lease payments.Lease payments are allocated between the principal component of the lease liability and the finance costs,so as to achieve a constant rate of interest on the remaining balance of the

167、liability.Leased assets acquired under a finance lease are depreciated over the assets useful life or over the shorter of the assets useful life and the lease term if there is no reasonable certainty that the consolidated entity will obtain ownership at the end of the lease term.Operating lease paym

168、ents,net of any incentives received from the lessor,are charged to profit or loss on a straight-line basis over the term of the lease.SciDev Ltd 2017 Annual Report 20 Impairment of non-financial assets Goodwill and other intangible assets that have an indefinite useful life are not subject to amorti

169、sation and are tested annually for impairment,or more frequently if events or changes in circumstances indicate that they might be impaired.Other non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.An i

170、mpairment loss is recognised for the amount by which the assets carrying amount exceeds 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 present value of the estimated future cash flows relating to the ass

171、et using a pre-tax discount rate specific to the asset or cash-generating unit to which the asset belongs.Assets that do not have independent cash flows are grouped together to form a cash-generating unit.Finance costs Finance costs attributable to qualifying assets are capitalised as part of the as

172、set.All other finance costs are expensed in the period in which they are incurred.Goods and Services Tax(GST)and other similar taxes Revenues,expenses and assets are recognised net of the amount of associated GST,unless the GST incurred is not recoverable from the tax authority.In this case it is re

173、cognised as part of the cost of the acquisition of the asset or as part of the expense.Receivables and payables are stated inclusive of the amount of GST receivable or payable.The net amount of GST recoverable from,or payable to,the tax authority is included in other receivables or other payables in

174、 the statement of financial position.Cash flows are presented on a gross basis.The GST components of cash flows arising from investing or financing activities which are recoverable from,or payable to the tax authority,are presented as operating cash flows.Commitments and contingencies are disclosed

175、net of the amount of GST recoverable from,or payable to,the tax authority.New Accounting Standards and Interpretations not yet mandatory or early adopted Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory,have not been early adopte

176、d by the consolidated entity for the annual reporting period ended 30 June 2017.The consolidated entitys assessment of the impact of these new or amended Accounting Standards and Interpretations,most relevant to the consolidated entity,are set out below.AASB 9 Financial Instruments This standard is

177、applicable to annual reporting periods beginning on or after 1 January 2018.The standard replaces all previous versions of AASB 9 and completes the project to replace IAS 39 Financial Instruments:Recognition and Measurement.AASB 9 introduces new classification and measurement models for financial as

178、sets.A financial asset shall be measured at amortised cost,if it is held within a business model whose objective is to hold assets in order to collect contractual cash flows,which arise on specified dates and solely principal and interest.All other financial instrument assets are to be classified an

179、d measured at fair value through profit or loss unless the entity makes an irrevocable election on initial recognition to present gains and losses on equity instruments(that are not held-for-trading)in other comprehensive income(OCI).For financial liabilities,the standard requires the portion of the

180、 change in fair value that relates to the entitys own credit risk to be presented in OCI(unless it would create an accounting mismatch).New simpler hedge accounting requirements are intended to more closely align the accounting treatment with the risk management activities of the entity.New impairme

181、nt requirements will use an expected credit loss(ECL)model to recognise an allowance.Impairment will be measured under a 12-month ECL method unless the credit risk on a financial instrument has increased significantly since initial recognition in which case the lifetime ECL method is adopted.The sta

182、ndard introduces additional new disclosures.The consolidated entity will adopt this standard from 1 January 2018 but the impact of its adoption is yet to be assessed by the consolidated entity.AASB 15 Revenue from Contracts with Customers This standard is applicable to annual reporting periods begin

183、ning on or after 1 January 2018.The standard provides a single standard for revenue recognition.The core principle of the standard is that an entity will recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the enti

184、ty expects to be entitled in exchange for those goods or services.The standard will require:contracts(either written,verbal or implied)to be identified,together with the separate performance obligations within the contract;determine the transaction price,adjusted for the time value of money excludin

185、g credit risk;allocation of the transaction price to the separate performance obligations on a basis of relative stand-alone selling price of each distinct good or service,or estimation approach if no distinct observable prices exist;and recognition of revenue when each performance obligation is sat

186、isfied.Credit risk will be presented separately as an expense rather than adjusted to revenue.For goods,the performance obligation would be satisfied when the customer obtains control of the goods.SciDev Ltd 2017 Annual Report 21 For services,the performance obligation is satisfied when the service

187、has been provided,typically for promises to transfer services to customers.For performance obligations satisfied over time,an entity would select an appropriate measure of progress to determine how much revenue should be recognised as the performance obligation is satisfied.Contracts with customers

188、will be presented in an entitys statement of financial position as a contract liability,a contract asset,or a receivable,depending on the relationship between the entitys performance and the customers payment.Sufficient quantitative and qualitative disclosure is required to enable users to understan

189、d the contracts with customers;the significant judgements made in applying the guidance to those contracts;and any assets recognised from the costs to obtain or fulfil a contract with a customer.The consolidated entity will adopt this standard from 1 January 2018 but the impact of its adoption is ye

190、t to be assessed by the consolidated entity.AASB 16 Leases This standard is applicable to annual reporting periods beginning on or after 1 January 2019.The standard replaces AASB 117 Leases and for lessees will eliminate the classifications of operating leases and finance leases.Subject to exception

191、s,a right-of-use asset will be capitalised in the statement of financial position,measured at the present value of the unavoidable future lease payments to be made over the lease term.The exceptions relate to short-term leases of 12 months or less and leases of low-value assets(such as personal comp

192、uters and small office furniture)where an accounting policy choice exists whereby either a right-of-use asset is recognised or lease payments are expensed to profit or loss as incurred.A liability corresponding to the capitalised lease will also be recognised,adjusted for lease prepayments,lease inc

193、entives received,initial direct costs incurred and an estimate of any future restoration,removal or dismantling costs.Straight-line operating lease expense recognition will be replaced with a depreciation charge for the leased asset(included in operating costs)and an interest expense on the recognis

194、ed lease liability(included in finance costs).In the earlier periods of the lease,the expenses associated with the lease under AASB 16 will be higher when compared to lease expenses under AASB 117.However EBITDA(Earnings Before Interest,Tax,Depreciation and Amortisation)results will be improved as t

195、he operating expense is replaced by interest expense and depreciation in profit or loss under AASB 16.For classification within the statement of cash flows,the lease payments will be separated into both a principal(financing activities)and interest(either operating or financing activities)component.

196、For lessor accounting,the standard does not substantially change how a lessor accounts for leases.The consolidated entity will adopt this standard from 1 July 2019 but the impact of its adoption is yet to be assessed by the consolidated entity.Note 2.Critical accounting judgements,estimates and assu

197、mptions The preparation of the financial statements requires management to make judgements,estimates and assumptions that affect the reported amounts in the financial statements.Management continually evaluates its judgements and estimates in relation to assets,liabilities,contingent liabilities,rev

198、enue and expenses.Management bases its judgements,estimates and assumptions on historical experience and on other various factors,including expectations of future events,management believes to be reasonable under the circumstances.The resulting accounting judgements and estimates will seldom equal t

199、he related actual results.The judgements,estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities(refer to the respective notes)within the next financial year are discussed below.Goodwill The consolidated entity tests a

200、nnually,or more frequently if events or changes in circumstances indicate impairment,whether goodwill has suffered any impairment,in accordance with the accounting policy stated in note 1.The recoverable amounts of cash-generating units have been determined based on value-in-use calculations.These c

201、alculations require the use of assumptions,including estimated discount rates based on the current cost of capital and growth rates of the estimated future cash flows.For information relating to the value-in-use calculations refer to note 14.Note 3.Restatement of comparatives Reclassification For th

202、e year ended 30 June 2016 the net gain on disposal of investments,income from subsidies and grants,and income from the reimbursement of expenses have been reclassified from Revenue to Other income in the statement of profit or loss.The expenses in the statement of profit or loss for the year ended 3

203、0 June 2016 were not presented using a consistent classification based on either the nature of expenses or their function within the consolidated entity.For the year ended 30 June 2017 the consolidated entity has presented expenses in the statement of profit or loss based on the nature of the expens

204、e and the comparatives have been reclassified to reflect the changes in presentation.The 30 June 2016 statement of financial position has been restated as follows:the income tax receivable and prepayments are disclosed separately on the face of the statement of financial position under current asset

205、s,and the loans from related related parties have been reclassified from trade and other payables to borrowings.SciDev Ltd 2017 Annual Report 22 Statement of profit or loss and other comprehensive income 2016 2016$Extract Reported Adjustment Restated Revenue 1,774,210 (351,138)1,423,072 Other income

206、 -351,138 351,138 Expenses Changes in inventories -22,263 22,263 Raw materials and consumables used (758,431)(22,263)(780,694)Administration expense (307,529)307,529 -Insurance -(37,247)(37,247)Listing and share registry expenses -(25,496)(25,496)Professional fees -(106,167)(106,167)Travel,accommoda

207、tion and conference -(71,740)(71,740)Other expenses (15,115)(66,879)(81,994)Loss before income tax expense (373,169)-(373,169)Income tax expense (84,961)-(84,961)Loss after income tax expense for the year (458,130)-(458,130)Other comprehensive income for the year,net of tax (18,100)-(18,100)Total co

208、mprehensive income for the year (476,230)-(476,230)Loss for the year is attributable to:Non-controlling interest 22,458 -22,458 Owners of SciDev Limited (480,588)-(480,588)(458,130)-(458,130)Total comprehensive income for the year is attributable to:Non-controlling interest 22,458 -22,458 Owners of

209、SciDev Limited (498,688)-(498,688)(476,230)-(476,230)SciDev Ltd 2017 Annual Report 23 Statement of financial position at the beginning of the earliest comparative period 1 July 2015 1 July 2015$Extract Reported Adjustment Restated Assets Current assets Trade and other receivables 326,531 (5,425)321,

210、106 Income tax refund due -5,425 5,425 Total current assets 1,508,702 -1,508,702 Total assets 3,076,130 -3,076,130 Liabilities Current liabilities Trade and other payables 277,754 (100,000)177,754 Borrowings 255,466 100,000 355,466 Total current liabilities 644,518 -644,518 Total liabilities 833,001

211、 -833,001 Net assets 2,243,129 -2,243,129 Statement of financial position at the end of the earliest comparative period 2016 2016$Extract Reported Adjustment Restated Assets Current assets Trade and other receivables 228,533 (13,009)215,524 Income tax refund due -11,253 11,253 Other -1,756 1,756 Tot

212、al current assets 984,662 -984,662 Total assets 2,485,197 -2,485,197 Liabilities Current liabilities Trade and other payables 205,136 (100,000)105,136 Borrowings 236,491 100,000 336,491 Total current liabilities 581,093 -581,093 Total liabilities 718,298 -718,298 Net assets 1,766,899 -1,766,899 Note

213、 4.Operating segments Identification of reportable operating segments The consolidated entity operates in primarily one geographical segment,namely Australia.The primary business segment is the treatment of industrial waste including the manufacture and supply of chemicals for the treatment of waste

214、 water.Operating and business segments are reported in a manner consistent with the internal reporting provided to the chief operating decision makers.The chief operating decision maker,who is responsible for allocating resources and assessing performance of the operating segments,has been identifie

215、d as the Board of Directors.SciDev Ltd 2017 Annual Report 24 Major customers During the year ended 30 June 2017 approximately XX%(2016:XX%)of the consolidated entitys external revenue was derived from sales to the consolidated entitys largest customer.No other customer contributed 10%or more to the

216、consolidated entitys revenue for both 2017 and 2016.Revenue by geographical area The consolidated entity operates in one geographical segment being Australia.Revenue from overseas customers is not material to the consolidated entity.Accounting policy for operating segments Operating segments are pre

217、sented using the management approach,where the information presented is on the same basis as the internal reports provided to the Chief Operating Decision Makers(CODM).The CODM is responsible for the allocation of resources to operating segments and assessing their performance.Note 5.Revenue 2017 20

218、16$Sales revenue Treatment fees and product sales 1,846,985 1,352,346 Other revenue Interest 13,387 16,726 Other revenue 64,861 54,000 78,248 70,726 Revenue 1,925,233 1,423,072 Accounting policy for revenue recognition Revenue is recognised when it is probable that the economic benefit will flow to

219、the consolidated entity and the revenue can be reliably measured.Revenue is measured at the fair value of the consideration received or receivable.Sale of goods Sale of goods revenue is recognised at the point of sale,which is where the customer has taken delivery of the goods,the risks and rewards

220、are transferred to the customer and there is a valid sales contract.Amounts disclosed as revenue are net of sales returns and trade discounts.Consulting services and treatment fees Consulting services and treatment fees are recognised using the percentage-of-completion method for fixed-fee arrangeme

221、nts or as the services are provided for time-and-materials arrangements.Interest Interest revenue is recognised as interest accrues using the effective interest method.This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period

222、using the effective interest rate,which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset.Other revenue Other revenue is recognised when it is received or when the right to receive paym

223、ent is established.Note 6.Other income 2017 2016$Net gain on disposal of investments -171,331 Subsidies and grants 218,492 162,690 Reimbursement of expenses 25,310 17,117 Other income 243,802 351,138 SciDev Ltd 2017 Annual Report 25 Note 7.Expenses 2017 2016$Loss before income tax includes the follo

224、wing specific expenses:Rental expense relating to operating leases Minimum lease payments 124,467 105,137 Superannuation expense Defined contribution superannuation expense 55,204 78,638 Note 8.Income tax 2017 2016$Income tax expense Current tax 137,177 93,844 Deferred tax-origination and reversal o

225、f temporary differences (13,632)(8,883)Aggregate income tax expense 123,545 84,961 Deferred tax included in income tax expense comprises:Decrease in deferred tax liabilities (13,632)(8,883)Numerical reconciliation of income tax expense and tax at the statutory rate Loss before income tax expense (47

226、3,795)(373,169)Tax at the statutory tax rate of 30%(142,139)(111,951)Tax effect amounts which are not deductible/(taxable)in calculating taxable income:Non-deductible expense 3,631 (8,504)(138,508)(120,455)Current year tax losses not recognised 249,635 194,514 Current year temporary differences not

227、recognised 12,418 10,902 Income tax expense 123,545 84,961 2017 2016$Tax losses not recognised Unused tax losses for which no deferred tax asset has been recognised 65,116,209 64,794,786 Potential tax benefit 30%19,534,863 19,438,436 The above potential tax benefit for tax losses has not been recogn

228、ised in the statement of financial position.These tax losses can only be utilised in the future if the continuity of ownership test is passed,or failing that,the same business test is passed.SciDev Ltd 2017 Annual Report 26 2017 2016$Deferred tax liability Deferred tax liability comprises temporary

229、differences attributable to:Amounts recognised in profit or loss:Brand name 52,250 65,882 Deferred tax liability 52,250 65,882 Movements:Opening balance 65,882 74,765 Credited to profit or loss (13,632)(8,883)Closing balance 52,250 65,882 2017 2016$Income tax refund due Income tax refund due -11,253

230、 Accounting policy for income tax The income tax expense or benefit for the period is the tax payable on that periods taxable income based on the applicable income tax rate for each jurisdiction,adjusted by the changes in deferred tax assets and liabilities attributable to temporary differences,unus

231、ed tax losses and the adjustment recognised for prior periods,where applicable.Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied when the assets are recovered or liabilities are settled,based on those tax rates that are enacted or su

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

233、 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 theforeseeable future.Deferred tax assets are recognised for deductible te

234、mporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting date.Deferred tax assets recognised a

235、re reduced to the extent that it is no longer probable that future taxable profits will be available for the carrying amount to be recovered.Previously unrecognised deferred tax assets are recognised to the extent that it is probable that there are future taxable profits available to recover the ass

236、et.Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against current tax liabilities and deferred tax assets against deferred tax liabilities;and they relate to the same taxable authority on either the same taxable entity or d

237、ifferent taxable entities which intend to settle simultaneously.SciDev Limited(the head entity)and its wholly-owned Australian subsidiaries have formed an income tax consolidated group under the tax consolidation regime.The head entity and each subsidiary in the tax consolidated group continue to ac

238、count for their own current and deferred tax amounts.The tax consolidated group has applied the separate taxpayer within group approach in determining the appropriate amount of taxes to allocate to members of the tax consolidated group.In addition to its own current and deferred tax amounts,the head

239、 entity also recognises the current tax liabilities(or assets)and the deferred tax assets arising from unused tax losses and unused tax credits assumed from each subsidiary in the tax consolidated group.SciDev Ltd 2017 Annual Report 27 Assets or liabilities arising under tax funding agreements with

240、the tax consolidated entities are recognised as amounts receivable from or payable to other entities in the tax consolidated group.The tax funding arrangement ensures that the intercompany charge equals the current tax liability or benefit of each tax consolidated group member,resulting in neither a

241、 contribution by the head entity to the subsidiaries nor a distribution by the subsidiaries to the head entity.Note 9.Current assets-cash and cash equivalents 2017 2016$Cash on hand 150 150 Cash at bank 438,564 477,939 Cash on deposit 500,000 -938,714 478,089 Accounting policy for cash and cash equi

242、valents Cash and cash equivalents includes cash on hand,deposits held at call with financial institutions,other short-term,highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk o

243、f changes in value.Note 10.Current assets-trade and other receivables 2017 2016$Trade receivables 303,480 189,580 Other receivables 30,537 25,944 334,017 215,524 Past due but not impaired Customers with balances past due but without provision for impairment of receivables amount to$127,650 as at 30

244、June 2017($93,444 as at 30 June 2016).The consolidated entity did not consider a credit risk on the aggregate balances after reviewing the credit terms of customers based on recent collection practices.The ageing of the past due but not impaired receivables are as follows:2017 2016$Past due 1-30 day

245、s 105,718 63,742 Past due 31-60 days 21,932 9,900 Past due 61+days -19,802 127,650 93,444 Accounting policy for trade and other receivables Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method,less any provision for

246、impairment.Trade receivables are generally due for settlement within 30 days.Collectability of trade receivables is reviewed on an ongoing basis.Debts which are known to be uncollectable are written off by reducing the carrying amount directly.A provision for impairment of trade receivables is raise

247、d when there is objective evidence that the consolidated entity will not be able to collect all amounts due according to the original terms of the receivables.Significant financial difficulties of the debtor,probability that the debtor will enter bankruptcy or financial reorganisation and default or

248、 delinquency in payments(more than 60 days overdue)are considered indicators that the trade receivable may be impaired.The amount of the impairment allowance is the difference between the assets carrying amount and the present value of estimated future cash flows,discounted at the original effective

249、 interest rate.Cash flows relating to short-term receivables are not discounted if the effect of discounting is immaterial.SciDev Ltd 2017 Annual Report 28 Other receivables are recognised at amortised cost,less any provision for impairment.Note 11.Current assets-inventories 2017 2016$Stock on hand-

250、at cost 231,839 278,040 Accounting policy for inventories Stock on hand is stated at the lower of cost and net realisable value.Cost comprises of purchase and delivery costs,net of rebates and discounts received or receivable.Net realisable value is the estimated selling price in the ordinary course

251、 of business less the estimated costs of completion and the estimated costs necessary to make the sale.Note 12.Non-current assets-other financial assets 2017 2016$Shares in unlisted companies-at cost 27,600 27,600 Less:Provision for impairment (24,700)(24,700)2,900 2,900 Note 13.Non-current assets-p

252、roperty,plant and equipment 2017 2016$Plant and equipment-at cost 522,904 377,726 Less:Accumulated depreciation (232,781)(151,854)290,123 225,872 Office equipment-at cost 31,028 31,028 Less:Accumulated depreciation (29,950)(28,355)1,078 2,673 291,201 228,545 Reconciliations Reconciliations of the wr

253、itten down values at the beginning and end of the current and previous financial year are set out below:Plant and Office equipment equipment Total$Balance at 1 July 2015 216,038 5,285 221,323 Additions 58,414 -58,414 Depreciation expense (48,580)(2,612)(51,192)Balance at 30 June 2016 225,872 2,673 2

254、28,545 Additions 190,764 -190,764 Disposals (17,345)-(17,345)Depreciation expense (109,168)(1,595)(110,763)Balance at 30 June 2017 290,123 1,078 291,201 SciDev Ltd 2017 Annual Report 29 Property,plant and equipment secured under finance leases Refer to note 28 for further information on property,pla

255、nt and equipment secured under finance leases.Accounting policy for property,plant and equipment Plant and equipment is stated at historical cost less accumulated depreciation and impairment.Historical cost includes expenditure that is directly attributable to the acquisition of the items.Depreciati

256、on is calculated on a straight-line basis to write off the net cost of each item of property,plant and equipment(excluding land)over their expected useful lives as follows:Plant and equipment 4-7 years Office equipment 2-8 years The residual values,useful lives and depreciation methods are reviewed,

257、and adjusted if appropriate,at each reporting date.Plant and equipment under lease are depreciated over the unexpired period of the lease or the estimated useful life of the assets,whichever is shorter.An item of property,plant and equipment is derecognised upon disposal or when there is no future e

258、conomic benefit to the consolidated entity.Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss.Note 14.Non-current assets-intangibles 2017 2016$Goodwill-at cost 1,030,018 1,030,018 Trade marks and intellectual property-at cost 374,833 322,690 Less:Accum

259、ulated amortisation (125,048)(83,618)249,785 239,072 1,279,803 1,269,090 Reconciliations Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below:Trade marks and intellectual Goodwill property Total$Balance at 1 July 2015 1,030,

260、018 258,887 1,288,905 Additions -14,756 14,756 Amortisation expense -(34,571)(34,571)Balance at 30 June 2016 1,030,018 239,072 1,269,090 Additions -52,143 52,143 Amortisation expense -(41,430)(41,430)Balance at 30 June 2017 1,030,018 249,785 1,279,803 Impairment testing Goodwill which was acquired t

261、hrough a business combination,has been allocated to the Science Development Pty Ltd cash-generating unit(CGU).The recoverable amount of the consolidated entitys goodwill has been determined by a value-in-use calculation using a discounted cash flow model,based on a 1 year projection period approved

262、by management and extrapolated for a further 4 years using variable rates,together with a terminal value.Key assumptions are those to which the recoverable amount of an asset or cash-generating units is most sensitive.SciDev Ltd 2017 Annual Report 30 Key assumptions in the discounted cashflow model

263、include:a.Post-tax discount rate of 12.5%(2016:8%)per annum;b.Revenue growth of 45%in 2018,49%in 2019 reducing to 9%in 2020;c.Growth in gross margin of 60%in 2018,56%in 2019 reducing to 9%in 2020;and d.Average per annum increase in operating expenses of 5%(2016:18%).The discount rate of 12.5%post-ta

264、x reflects managements estimate of the time value of money and the consolidated entitys weighted average cost of capital,the risk free rate and the volatility of the share price relative to market movements.Management believes the projected revenue growth rate is prudent and justified,based on past

265、performance and managements expectations of market development.The budgeted gross margin is based on past performance and managements expectations for the future.Management has budgeted for operating costs based on the current structure of the business,adjusting for inflationary increases but not re

266、flecting any future restructurings or cost saving measures.Sensitivity to change of assumptions If the next years financial budget used in the value-in-use calculation had been 10%lower than managements estimates at 30 June 2017,the consolidated entity would have a recoverable amount in excess of$2.

267、02 million against the carrying amount of the cash generating unit to which the goodwill relates.If the post-tax discount rate applied to the cash flow projections of this CGU had been 20%higher than managements estimates(15%instead of 12.5%),the consolidated entity would have a recoverable amount i

268、n excess of$2.14 million against the carrying amount of intangible assets and property,plant and equipment.Accounting policy for intangible assets Intangible assets acquired as part of a business combination,other than goodwill,are initially measured at their fair value at the date of the acquisitio

269、n.Intangible assets acquired separately are initially recognised at cost.Indefinite life intangible assets are not amortised and are subsequently measured at cost less any impairment.Finite life intangible assets are subsequently measured at cost less amortisation and any impairment.The gains or los

270、ses recognised in profit or loss arising from the derecognition of intangible assets are measured as the difference between net disposal proceeds and the carrying amount of the intangible asset.The method and useful lives of finite life intangible assets are reviewed annually.Changes in the expected

271、 pattern of consumption or useful life are accounted for prospectively by changing the amortisation method or period.Goodwill Goodwill arises on the acquisition of a business.Goodwill is not amortised.Instead,goodwill is tested annually for impairment,or more frequently if events or changes in circu

272、mstances indicate that it might be impaired,and is carried at cost less accumulated impairment losses.Impairment losses on goodwill are taken to profit or loss and are not subsequently reversed.Trade marks and intellectual property Significant costs associated with trade marks and intellectual prope

273、rty are deferred and amortised on a straight-line basis over the period of their expected benefit,being their finite life of 10 years.Note 15.Current liabilities-trade and other payables 2017 2016$Trade payables 287,455 65,355 BAS payable 16,851 9,053 Other payables 54,104 30,728 358,410 105,136 Ref

274、er to note 23 for further information on financial instruments.Accounting policy for trade and other payables These amounts represent liabilities for goods and services provided to the consolidated entity prior to the end of the financial year and which are unpaid.Due to their short-term nature they

275、 are measured at amortised cost and are not discounted.The amounts are unsecured and are usually paid within 30 days of recognition.SciDev Ltd 2017 Annual Report 31 Note 16.Current liabilities-borrowings 2017 2016$Trade finance facility -196,535 Loans from related parties -100,000 Lease liability 11

276、,957 39,956 11,957 336,491 Refer to note 18 for further information on assets pledged as security and financing arrangements.Refer to note 23 for further information on financial instruments.Note 17.Current liabilities-employee benefits 2017 2016$Annual leave 67,659 52,897 Long service leave 95,706

277、86,569 163,365 139,466 Accounting policy for employee benefits Short-term employee benefits Liabilities for wages and salaries,including non-monetary benefits,annual leave and long service leave expected to be settled wholly within 12 months of the reporting date are measured at the amounts expected

278、 to be paid when the liabilities are settled.Defined contribution superannuation expense Contributions to defined contribution superannuation plans are expensed in the period in which they are incurred.Note 18.Non-current liabilities-borrowings 2017 2016$Lease liability 32,546 71,323 Refer to note 2

279、3 for further information on financial instruments.The total secured liabilities(current and non-current)are as follows:2017 2016$Trade finance facility -196,535 Lease liability 44,503 111,279 44,503 307,814 Assets pledged as security The leases relate to a motor vehicle provided to the Managing Dir

280、ector and plant and equipment owned by Science Developments Pty Ltd.The motor vehicle lease liability is effectively secured over the motor vehicle.The shareholders of Science Developments Pty Ltd have provided guarantees for the finance lease relating to plant and equipment.The trade finance facili

281、ty is secured by way of a guarantee by a Director related Company of a Director of Science Developments Pty Ltd.SciDev Ltd 2017 Annual Report 32 Financing arrangements Unrestricted access was available at the reporting date to the following lines of credit:2017 2016$Total facilities Trade finance -2

282、50,000 Used at the reporting date Trade finance -196,535 Unused at the reporting date Trade finance -53,465 Accounting policy for borrowings Loans and borrowings are initially recognised at the fair value of the consideration received,net of transaction costs.They are subsequently measured at amorti

283、sed cost using the effective interest method.Where there is an unconditional right to defer settlement of the liability for at least 12 months after the reporting date,the loans or borrowings are classified as non-current.Note 19.Equity-issued capital 2017 2016 2017 2016 Shares Shares$Ordinary share

284、s-fully paid 494,818,673 299,818,669 73,673,290 71,641,977 Movements in ordinary share capital Details Date Shares Issue price$Balance 1 July 2015 299,818,669 71,641,977 Balance 30 June 2016 299,818,669 71,641,977 Share placement 19 December 2016 44,972,800$0.012 539,674 Share purchase plan 12 Janua

285、ry 2017 50,000,004$0.012 600,000 Share placement 2 February 2017 80,027,200$0.012 960,326 Acquisition of shares in Science Developments Pty Ltd 27 February 2017 20,000,000$0.012 240,000 Share issue transaction costs -$0.000 (308,687)Balance 30 June 2017 494,818,673 73,673,290 Ordinary shares Ordinar

286、y shares entitle the holder to participate in dividends and the proceeds on the winding up of the company in proportion to the number of and amounts paid on the shares held.The fully paid ordinary shares have no par value and the company does not have a limited amount of authorised capital.On a show

287、 of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one vote.Share placement The company issued 44,972,800 and 80,027,200 ordinary shares on 19 December 2016 and 2 February 2017 respectively,in terms of a conditional placement t

288、o sophisticated and professional investors at an issue price of 1.2 cents per share.Share purchase plan On 12 January 2017 the company issued 50,000,004 ordinary shares under a Share Purchase Plan at an issue price of 1.2 cents per share.The plan was fully subscribed.SciDev Ltd 2017 Annual Report 33

289、 Acquisition of Science Developments Pty Ltd The company exercised its option to acquire the remaining 50%of Science Developments Pty Ltd.The consideration paid for the exercise of the option amounted to$900,000 and was comprised of$660,000 in cash and the issue of 20,000,000 ordinary shares at an i

290、ssue price of 1.2 cents per share.Capital risk management The consolidated entitys objectives when managing capital is to safeguard its ability to continue as a going concern,so that it can provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital struct

291、ure to reduce the cost of capital.Capital is regarded as total equity,as recognised in the statement of financial position,plus net debt.Net debt is calculated as total borrowings less cash and cash equivalents.In order to maintain or adjust the capital structure,the consolidated entity may adjust t

292、he amount of dividends paid to shareholders,return capital to shareholders,issue new shares or sell assets to reduce debt.The consolidated entity would look to raise capital when an opportunity to invest in a business or company was seen as value adding relative to the current companys share price a

293、t the time of the investment.The consolidated entity is not actively pursuing additional investments in the short term as it continues to integrate and grow its existing businesses in order to maximise synergies.There are no externally imposed capital requirements.The capital risk management policy

294、remains unchanged from the 2016 Annual Report.The consolidated entity monitors capital on the basis of its working capital position(i.e.liquidity risk).The net working capital of the consolidated entity at 30 June 2017 was$972,592(2016:$403,569).Accounting policy for issued capital Ordinary shares a

295、re classified as equity.Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction,net of tax,from the proceeds.Note 20.Equity-reserves 2017 2016$Share-based payments reserve 2,814,422 2,653,594 Transactions with non-controlling interests (645,19

296、9)-2,169,223 2,653,594 Share-based payments reserve The reserve is used to recognise the value of equity benefits provided to employees and directors as part of their remuneration,and other parties as part of their compensation for services.Transactions with non-controlling interests A change in own

297、ership interest,without the loss of control,is accounted for as an equity transaction,where the difference between the consideration transferred and the book value of the share of the non-controlling interest acquired is recognised directly in equity attributable to the parent.SciDev Ltd 2017 Annual

298、 Report 34 Movements in reserves Movements in each class of reserve during the current and previous financial year are set out below:Asset revaluation Share-based payments Transactions with non-controlling reserve reserve interests Total$Balance at 1 July 2015 18,100 2,653,594 -2,671,694 Revaluation

299、-gross 22,465 -22,465 Cumulative gain reclassified to profit or loss on sale of available-for-sale financial assets (40,565)-(40,565)Balance at 30 June 2016 -2,653,594 -2,653,594 Share-based payments -160,828 -160,828 Acquisition of non-controlling interest in Science Developments Pty Ltd -(645,199)

300、(645,199)Balance at 30 June 2017 -2,814,422 (645,199)2,169,223 Note 21.Equity-non-controlling interest 2017 2016$Issued capital -9,005 Reserves -101,575 Retained profits -59,410 -169,990 Note 22.Equity-dividends Dividends There were no dividends paid,recommended or declared during the current or pre

301、vious financial year.Franking credits 2017 2016$Franking credits available for subsequent financial years based on a tax rate of 27.5%82,824 160,268 The above amounts represent the balance of the franking account as at the end of the financial year,adjusted for:franking credits that will arise from

302、the payment of the amount of the provision for income tax at the reporting date franking debits that will arise from the payment of dividends recognised as a liability at the reporting date franking credits that will arise from the receipt of dividends recognised as receivables at the reporting date

303、 Note 23.Financial instruments Financial risk management objectives The consolidated entitys activities expose it to a variety of financial risks:market risk(including foreign currency risk,price risk and interest rate risk),credit risk and liquidity risk.The consolidated entitys overall risk manage

304、ment program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the consolidated entity.The consolidated entity does not enter into or trade financial instruments,including derivative financial instruments,for speculat

305、ive purposes.Risk management is carried out by Company management and the Board of Directors.Financial risks are identified and evaluated and,where considered necessary,strategies are put in place to investigate and/or minimise such risks.SciDev Ltd 2017 Annual Report 35 Market risk Foreign currency

306、 risk Foreign exchange risk arises when future commercial transactions and recognised assets and liabilities are denominated in a currency that is not the entitys functional currency.The consolidated entity has a trade finance facility utilised for the purchase of US$denominated invoices.Purchases t

307、hrough the facility are transacted at the prevailing spot A$/US$exchange rate and the outstanding amount under the facility is always denominated in A$.The consolidated entity has not entered into any foreign currency hedging contracts during the year.Price risk The consolidated entity is not expose

308、d to any significant price risk.Interest rate risk The consolidated entitys main interest rate risk arises from borrowings.Borrowings obtained at variable rates expose the consolidated entity to interest rate risk.Borrowings obtained at fixed rates expose the consolidated entity to fair value intere

309、st rate risk.As at the reporting date,the consolidated entity had the following variable rate borrowings outstanding:2017 2016 Weighted average interest rate Balance Weighted average interest rate Balance%$%$Trade finance facility and leases 6.00%44,503 6.00%307,814 Net exposure to cash flow interes

310、t rate risk 44,503 307,814 An analysis by remaining contractual maturities in shown in liquidity and interest rate risk management below.An official increase/decrease in interest rates of 100(2016:100)basis points would have an adverse/favourable effect on profit before tax of$455(2016:$3,078)per an

311、num.The percentage change is based on the expected volatility of interest rates using market data and analysts forecasts.Credit risk Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the consolidated entity.There is no signi

312、ficant concentration of credit risk to any single entity.The maximum exposure to credit risk at the reporting date to recognised financial assets is the carrying amount,net of any provisions for impairment of those assets,as disclosed in the statement of financial position and notes to the financial

313、 statements.There is no trade debtor or other receivable amount where collateral has been received as security or pledged.Liquidity risk Vigilant liquidity risk management requires the consolidated entity to maintain sufficient liquid assets(mainly cash and cash equivalents)and available borrowing f

314、acilities to be able to pay debts as and when they become due and payable.The consolidated entity manages liquidity risk by maintaining adequate cash reserves and available borrowing facilities by continuously monitoring actual and forecast cash flows and matching the maturity profiles of financial

315、assets and liabilities.Remaining contractual maturities The following tables detail the consolidated entitys remaining contractual maturity for its financial instrument liabilities.The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date

316、on which the financial liabilities are required to be paid.The tables include both interest and principal cash flows disclosed as remaining contractual maturities and therefore these totals may differ from their carrying amount in the statement of financial position.SciDev Ltd 2017 Annual Report 36

317、Weighted average interest rate 1 year or less Between 1 and 2 years Between 2 and 5 years Over 5 years Remaining contractual maturities -2017%$Non-interest bearing Trade payables and other payables -358,410 -358,410 Interest-bearing-variable Trade finance and lease liability 6.00%11,957 32,546 -44,5

318、03 Total non-derivatives 370,367 32,546 -402,913 Weighted average interest rate 1 year or less Between 1 and 2 years Between 2 and 5 years Over 5 years Remaining contractual maturities -2016%$Non-interest bearing Trade and other payables -105,136 -105,136 Interest-bearing-variable Trade finance and

319、lease liability 6.00%236,491 71,323 -307,814 Interest-bearing-fixed rate Loans from related parties 6.00%100,000 -100,000 Total non-derivatives 441,627 71,323 -512,950 The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed above.Fai

320、r value of financial instruments Unless otherwise stated,the carrying amounts of financial instruments reflect their fair value.Note 24.Fair value measurement Fair value hierarchy The following tables detail the consolidated entitys assets and liabilities,measured or disclosed at fair value,using a

321、three level hierarchy,based on the lowest level of input that is significant to the entire fair value measurement,being:Level 1:Quoted prices(unadjusted)in active markets for identical assets or liabilities that the entity can access at the measurement date Level 2:Inputs other than quoted prices in

322、cluded within Level 1 that are observable for the asset or liability,either directly or indirectly Level 3:Unobservable inputs for the asset or liability Level 1 Level 2 Level 3 Total -2017$Assets Unlisted investments -2,900 -2,900 Total assets -2,900 -2,900 Level 1 Level 2 Level 3 Total -2016$Asset

323、s Unlisted investments -2,900 -2,900 Total assets -2,900 -2,900 There were no transfers between levels during the financial year.Valuation techniques for fair value measurements categorised within level 2 and level 3 Unquoted investments have been valued using a discounted cash flow model.SciDev Ltd

324、 2017 Annual Report 37 Accounting policy for fair value measurement When an asset or liability,financial or non-financial,is measured at fair value for recognition or disclosure purposes,the fair value is based on the price that would be received to sell an asset or paid to transfer a liability in a

325、n orderly transaction between market participants at the measurement date;and assumes that the transaction will take place either:in the principal market;or in the absence of a principal market,in the most advantageous market.Fair value is measured using the assumptions that market participants woul

326、d use when pricing the asset or liability,assuming they act in their economic best interests.For non-financial assets,the fair value measurement is based on its highest and best use.Valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure

327、fair value,are used,maximising the use of relevant observable inputs and minimising the use of unobservable inputs.Assets and liabilities measured at fair value are classified,into three levels,using a fair value hierarchy that reflects the significance of the inputs used in making the measurements.

328、Classifications are reviewed at each reporting date and transfers between levels are determined based on a reassessment of the lowest level of input that is significant to the fair value measurement.For recurring and non-recurring fair value measurements,external valuers may be used when internal ex

329、pertise is either not available or when the valuation is deemed to be significant.External valuers are selected based on market knowledge and reputation.Where there is a significant change in fair value of an asset or liability from one period to another,an analysis is undertaken,which includes a ve

330、rification of the major inputs applied in the latest valuation and a comparison,where applicable,with external sources of data.Note 25.Key management personnel disclosures Compensation The aggregate compensation made to directors and other members of key management personnel of the consolidated enti

331、ty is set out below:2017 2016$Short-term employee benefits 358,572 352,773 Post-employment benefits 31,297 31,297 Long-term benefits 9,137 -399,006 384,070 Note 26.Remuneration of auditors During the financial year the following fees were paid or payable for services provided by Rothsay Chartered Ac

332、countants,the auditor of the company:2017 2016$Audit services-Rothsay Chartered Accountants Audit or review of the financial statements 31,300 29,500 Other services-Rothsay Chartered Accountants Tax compliance services 5,500 -36,800 29,500 SciDev Ltd 2017 Annual Report 38 Note 27.Contingent assets T

333、he Group holds a 2.5%net smelter royalty in relation to future base metals extracted from certain tenements in the Hellyer/Que River region of Tasmania.The Group also holds a mining lease and retention licence covering a stockpile of zinc-bearing residue near Zeehan,Tasmania.As a result of a transaction entered into by Intec International Projects Pty Ltd(“IIP”)with Monument Mining Limited,a Compa