1、Copyright Medlab Clinical Ltd 2018ANNUAL REPORTFOR THE YEAR ENDED 30 JUNE 2018MEDLAB CLINICAL LIMITED(ABN 51 169 149 071)INNOVATION-QUALITY-LIFE SCIENCESCONTENTS 3 Chairmans Letter4CEO Report5Directors Report11Auditors Independence Declaration20Financial Statements21Directors Declaration49Independen
2、t Auditors Report50Shareholder Information53Corporate Directory55Medlabs Nutraceutical Range-Practitioner onlymedlab.coINNOVATION-QUALITY-LIFE SCIENCES 4 CHAIRMANS LETTERWelcome to Medlab Cli ni cals 2018 Annual Report.Three years ago,we stated i n our i ni ti al offeri ng documents that our ai m wa
3、s to develop novel nutraceuti calsand medi ci nes to treat chroni c i llness.There were fi ve areas of chroni c i llness we mapped out for concentrati on,as thi s di agram shows:Our i ntenti on was to use our knowledge i n probi oti cs and develop our uni que very small parti cle deli very system,Na
4、noCelle.It i s pleasi ng to report now that,wi thi n thi s relati vely short peri od of three years,we are well underway wi th taki ng our researchi nto human tri als.We currently have three cli ni cal tri als i n progress:Intractable Pai n,wi th NanaBi s bei ng tri alled at Royal North Shore Hospi
5、tal wi th seri ously i ll cancer pati entsDepressi on,wi th our NRGBi oti c bei ng used i n combi nati on wi th standard depressi on medi ci ne i n a Phase 2a tri al at QUTObesi ty and Di abetes,wi th Medlabs T2Bi oti c havi ng completed a Phase1a tri al and prepari ng for a Phase2a tri alIn all thr
6、ee of these tri als,Medlabs products,processes and methods are protected by patents,some granted and others pendi ng.The cancer pai n tri al i nvolves Medlab i n the medi cal cannabi s busi ness sector but wi th di sti ncti ve posi ti oni ng.We are usi ngour own formulati on of cannabi s medi ci ne
7、and taki ng i t to human tri als to achi eve an evi dence based medi cal standard.Thi si s the fi rst step towards an appli cati on for a regi stered medi ci ne.Whi le thi s i s progressi ng,medi cal doctors can apply to the Health department for supply to pati ents i n need.We are pleasedto report
8、from feedback we have been recei vi ng that doctors are usi ng thi s process and pati ent outcomes are very posi ti ve.Depressi on and obesi ty tri als use uni que patent protected speci fi c strai ns of Probi oti cs.In New Zealand we are conducti ng compari son tri als of our NanoCelle wi th an i n
9、dustry leadi ng stati n product.Our ai m i s toshow we can deli ver a smaller dose wi thout the addi ti ves whi ch we beli eve cause the unpleasant si de effects of the exi sti ng product.Medlabs strategy i s to pursue meani ngful di scussi ons wi th major pharmaceuti cal compani es to have them app
10、reci ate ourpotenti al,leadi ng to possi ble favourable fi nanci al outcomes for shareholders.Events duri ng these past three years have supported our concentrati on on chroni c i llnesses.The overuse of opi oi ds has proven to be a scourge,ki lli ng many people.The cost of depressi on,mental i llne
11、ss and obesi ty tosoci ety i s consumi ng far too much of our Health budget and has to be better addressed.So we beli eve Medlab i s i n a very strong posi ti on.Please refer to the CEO Report for more detai l on Medlabs progress.Michael HallChai rman5 key research areas in chronic diseasesageing&mu
12、scularskeletal healthpainmanagementchronic kidneydiseaseobesitydepressionmedlab.coINNOVATION-QUALITY-LIFE SCIENCESStrong IP Portfolio62715141GRANTEDINNOVATIONPATENTSGRANTEDAUSTRALIANPATENTTOTALPENDINGNATIONAL/REGIONALPHASE PATENTSPENDINGINTERNATIONAL(PCT)PATENTSPROVISIONALPATENTAPPLICATIONSMarket Po
13、tential Chronic DiseaseAdvanced Cancer PainType II DiabetesSeizuresPre-DiabetesAUSTRALIA130,000 new patientsevery year1USA86,000,000&growing2USA30,000,000&growing365,000,000worldwide9Over 40%ofchemotherapypatients570-80%of patientsundergoingchemotherapy85%of the worldpopulation4Australia:1,2000,0006
14、USA:85,600,0007DepressionMucositisCVDCINVCEO REPORTDear Shareholder,In FY18,Medlab recorded si gni fi cant achi evements,i ndi cati ng posi ti ve progress towards the goals i testabli shed on li sti ng on the ASX.At that ti me,Medlab was at an early stage of development and today i t i swell progres
15、sed on a path towards commerci ali si ng i ts research and development programs.We have greatlyappreci ated shareholder support on thi s journey.Over thi s ti me Medlab has also demonstrated the potenti al of i ts strategy and busi ness model.Medlab i s ali fe sci ences company wi th 2 key areas of
16、acti vi ty:Research and development(R&D)Commerci ali sati on of pharmaceuti cal and nutraceuti cal productsR&D i s the dri ver of potenti al from i ts focus on chroni c di seases whi le nutraceuti cal sales assi st cash flow fundi ng of Medlabs programs.Hi ghli ghts from FY18 demonstrate the extent
17、of Medlabs achi evements.HIGHLIGHTSRevenue up by 25%to$5.55mCash recei pts from customers up 47%Successful completi on of share placement to sophi sti cated and i nsti tuti onal i nvestors,rai si ng approxi mately$22.68m after costs.Nutraceuti cal busi ness conti nui ng to grow by gai ni ng recogni
18、ti on i n professi onal PharmacyLi cence to Sell or Supply a Schedule 8 or Schedule 9 Drug(li mi ted to cannabi s and i ts deri vati ves)NanaBi s(Cannabi s CBD/THC)and NanaBi di al(Cannabi s CBD product)li censed for supply through the Governments Speci al Access Scheme(SAS)Doctors prescri bi ng Nan
19、aBi s i ndi cate early exci ti ng and posi ti ve dataNanaBi s Phase 1/2a Cli ni cal Tri al at Royal North Shore Hospi tal underwayNRGBi oti c,Depressi on Phase 2a Cli ni cal Tri al at Queensland Uni versi ty of Technology(QUT),Bri sbane,underwayHuman Ethi cs approval to expand Medlabs i nvolvement i
20、 n Oncology usi ng Multi Bi oti cStrong overall patent posi ti on wi th 27 patentsmedlab.coINNOVATION-QUALITY-LIFE SCIENCESCEO REPORT(cont.)MEDLABs RESEARCH IS THE SIGNIFICANT MARKET DIFFERIENTIATORMedlabs focus on developi ng therapeuti cs for Chroni c Di seases represents a poi nt of di fference,a
21、s these vi deo li nksdemonstrate:Chroni c Di seases(https:/player.vi deo/220246612)Medi ci nes Australi a Vi deo on MDC(https:/ research allows i nvesti gati on and ulti mately commerci ali sati on of bothnutraceuti cals and pharmaceuti cals.Thi s same research generates i ntellectualproperty,whi ch
22、 forms patent appli cati ons,and publi cati ons,all of whi ch attestto the quali ty and extent of work Medlab undertakes and subsequently marketsas product offeri ngs i n an ethi cal,sci enti fi c manner.Medlabs research endeavours are progressi ng well and i n some cases are 12 to18 months ahead of
23、 ori gi nal expectati ons.Speci fi cally,we have previ ouslyannounced tri al progress i n both our Cannabi s(NanaBi s)tri al program andour Depressi on(NRGBi oti c)tri al program.Whi le i t i s too early to comment on tri al progressi on,support for the premi sesunderlyi ng the tri als,from the medi
24、 cal communi ty and tri al parti ci pants,i sposi ti ve.Both tri als are underway and so take Medlab towards i ts goal ofachi evi ng a regi stered drug wi th strong approved clai ms as well as a strongernegoti ati ng posi ti on around potenti al commerci ali sati on.In both cases,i t i s i mportant
25、to note that Medlabs medi ci nes bei ng tri aled-NanaBi s i n the Cli ni cal Tri al at Royal North Shore Hospi tal for advanced cancerpai n and NRGBi oti c i n the Cli ni cal Tri al at QUT for depressi on-are avai lablei n market to people outsi de the tri al cohort.To encourage parti ci pati on i n
26、 the depressi on tri al,QUT released thi s vi deohttps:/www.medlab.co/to explai n the sci ence underlyi ng tri al of MedlabsNRGBi oti c i n conjuncti on wi th standard medi cati on for treatment of depressi on.Just recently Medlab has expanded i ts i nvolvement i n the area of oncology,recei vi ng H
27、uman Ethi cs approval to go to tri al fortreatment of“mucosi ti s”.Thi s tri al wi ll uti li se Medlabs Multi Bi oti c,a patented product already i n market.A characteri sti c of the Medlab research portfoli o i s that,from some overlappi ng aspects of chroni c di seases,i t i s able to targetopport
28、uni ti es around unmet needs,as the di agram below shows.ONCOLOGY Pain Medication(NanaBis)Chemotherapy Induced Nausea and Vomiting(CINV)(NanaBidial)Palliative Care(NanaBis)Mucositis/Neutropenia(MultiBiotic)METABOLICDISEASES Type 2 Diabetes(T2DM)(T2Biotic)Non Alcoholic Fatty Liver Disease (NAFLD)(Mul
29、tiBiotic)Cardiovascular Disease(CVD)(NanoStat)MENTAL HEALTH Depression(NRGBiotic)Mucositis,sometimescalled Stomatitis,isinflammation of thelining of the digestivetract,a common sideeffect of bothchemotherapy andradiotherapy,resultingin a range of problemsfor the patient,frommild to severe andrequiri
30、ng furtherhospitalisation.Mucositis is estimatedto affect some 40%ofChemotherapy patients.medlab.coINNOVATION-QUALITY-LIFE SCIENCES 7 CEO REPORT(cont.)GLOBAL NUTRACEUTICAL OPPORTUNITIESNutraceuti cals sales conti nue to grow,wi thout excessi ve marketi ng costs.Medlabs focus has been to work wi th p
31、rofessi onalPharmacy wi th Doctor referral.Thi s i s provi ng a worthwhi le model as i t values our research and publi cati on commi tment anddi fferenti ates us from mass marketers and deep di scounti ng.The i ntroducti on of novel patented and cli ni cally backed products provi des for speci ali s
32、ed conversati ons ai med at better,morerobust pati ent cared healthcare.The nutraceuti cal posi ti on over the past 12 months has centred around,pre and post drug treatment as well as adjuvant carewhere research i ndi cates i t wi ll be benefi ci al.Thi s i s strategi cally i mportant,as we see pote
33、nti al i n offeri ng both the drug therapy to cure a di sease,and a nutraceuti caltherapy,post cure to mai ntai n pati ents i n perpetui ty.Our model is demonstrated here:The above model i llustrates Medlabs longer term strategy.Wi th several of Medlabs products both on market and under Cli ni calTr
34、i al,there i s an accelerati on effect of products enteri ng the market place.By addressi ng the market place i n thi s a way,we are bui ldi ng the fundamentals for a long-term posi ti on wi th li mi tedcompeti ti on.Medlab currently has 30 products avai lable globally,wi th another 6 i n developmen
35、t.For more i nformati on on the Medlab nutraceuti cals vi si t https:/www.medlab.co/nutraceuti cals/productsPatient sees DoctorDoctor prescribes therapeutic(either MDC Drug or MDC nutraceutical)Patient returns to Doctor for follow-up(MDC Drug and/or MDC nutraceutical prescribed if warranted)Patient
36、returns to Pharmacy for further script repeats(MDC product offered)Patient takes script to Pharmacy for fulfilment(MDC product offered)Shareholders canreceive a copy of thelatest Efficacy byemailinghellomedlab.co anda link will be providedby return email.As a benefit tosupporters of Medlab,we are in
37、troducing aShareholder discountof 25%,allowing youto order personalstock as required.Ifyou are interested inthis offer,please emailinvestorsmedlab.co.medlab.coINNOVATION-QUALITY-LIFE SCIENCES 8 CEO REPORT(cont.)FINANCIAL RESULTSMedlabs key fi nanci al i ndi cators are showi ng i mprovement i n compa
38、ri son wi th FY17:Revenue up 25%to$5.55mIncrease of cash recei pts from customers by 47%Increase i n sales from nutraceuti cals,up over 26%EBIT loss attri buted to the nutraceuti cal busi ness down by 21%Recei pt of research and development refund of$927kCash balance at 30 June 2018 of$20.332mNet as
39、sets of$21.9mMedlabs net loss for the peri od has i ncreased to$4.76m due to the costs i ncurred i n accelerati ng the Companys researchprojects(i n some cases are 12 to 18 months ahead of schedule)and costs related to the supporti ng of NanaBi s under theGovernments Speci al Access Scheme.Medlabs n
40、utraceuti cal busi ness conti nues to i mprove:an i ncrease of revenue of 26%no i ncrease i n operati ng expenses.Below i s a summary of the Companys performance by busi ness uni ts.Refer to Note 29:Segment Reporti ng for more detai ls:*The i ncrease i n pharmaceuti cal expenses relates to accelerat
41、i ng the research projects and supporti ng the Governments SASthrough the educati on process of doctors.OUTLOOKMedlabs Board and Seni or Management are posi ti ve about the future.The market si ze and potenti al surroundi ng our researchand development programs are si gni fi cant.Our medi ci nes i n
42、 cli ni cal tri als have the potenti al to meet the fast tracki ngrequi rements of TGA and thi s can reduce substanti ally the long lead ti mes usually associ ated wi th commerci ali si ng researchi n the pharmaceuti cal i ndustry.Achi evi ng regulatory approvals i n Australi a also enhances opportu
43、ni ti es for meeti ng regulatorycondi ti ons i n other global markets.These factors underli e our confi dence i n the developments we currently have i n progress.Over the course of the next 12 months,i f there are no unforeseen delays,we are expecti ng:Trial completion:RNS NanaBi s,advanced cancer p
44、ai n tri alNanaBi di al safety tri alNanoStat(NanoCelle Atorvastati n)pi lot bi oequi valenceTrial commencement:Phase2a T2 Di abeti c tri alMulti Bi oti c Phase 1 mucosi ti s tri alNanoCelle characteri sati on program(needed for drug approval)Regulatory guidance:NanaBi s(Australi a,USA and Europe)NR
45、GBi oti c(Australi a)At the same ti me,we are expecti ng strong commerci al growth as we conti nue to develop our professi onal market and conti nuefurther trade talks wi th exi sti ng i nterested parti es.Revenue-NutraceuticalRevenue-PharmaceuticalExpenses-Nutraceutical(excludes cost of sales)Expen
46、ses-Pharmaceutical*EBITDA-NutraceuticalEBITDA-PharmaceuticalIncrease 26%Increase 13%steadyIncrease 58%Increase 21%Decrease 106%3.2731.1054.3282.214(2.705)(1.056)4.1341.2494.2963.494(2.137)(2.177)%Change2017$0002018$000medlab.coINNOVATION-QUALITY-LIFE SCIENCES 9 CEO REPORT(cont.)CONCLUSIONThe Board a
47、nd Seni or Management are very proud of what Medlab has achi eved i n the relati vely short peri od,wi th noteworthymi lestones bei ng:Accelerated research programsEntry of NanaBi s i nto the Australi an marketplace vi a the Governments SASLaunch and conti nued growth i n the Nutraceuti cal busi nes
48、s27 patents7 completed human ethi c tri als10 human ethi cs tri als approved,but not completedSeveral early stage unreali sed commerci al deals under consi derati onBui ldi ng to 51 staff globallyIncrease i n shareholders to over 4,000Increase i n market capi tali sati on to approxi mately$100mWe ap
49、preci ate shareholder support and acknowledge that our progress i s the outcome of a great effort from the Medlab team,practi ti oners and the medi cal communi ty.I also encourage you to look at our websi te regularly and follow us on Li nkedIn and Twi tter as we are i ncreasi ng the extent ofcommun
50、i cati on and explanati on around our work,products and vi ews.Si ncerely,Dr Sean HallReferences:1.https:/www.cancer.org.au/about-cancer/what-i s-cancer/facts-and-fi gures.html2.https:/www.cdc.gov/medi a/releases/2014/p0610-di abetes-report.html3.http:/www.di abetes.org/assets/pdfs/basi cs/cdc-stati
51、 sti cs-report-2017.pdf4.https:/www.healthli on/facts-stati sti cs-i nfographi c#15.https:/www.sci encedi ence/arti cle/pi i/S1808869415301105#bi b126.Australi an Government,The Department of Health http:/www.health.gov.au/i nternet/mai n/publi shi ng.nsf/Content/chroni c-cardi o7.Ameri can Heart As
52、soci ati on https:/www.heart.org/i dc/groups/ahamah-publi c/wcm/sop/smd/documents/downloadable/ucm_470704.pdf8.Transparency Market Research.CINV Exi sti ng and Pi peli ne Drugs Market:Global Industry Analysi s,Si ze,Share,Growth,Trends and Forecast,2014-2020.http:/ nv-market.html.Accessed October 4,
53、2016.9.https:/www.epi lepsy.org.au/about-epi lepsy/facts-and-stati sti cs/FINANCIAL REPORTCONTENTSDirectors Report11Auditors Independence Declaration20Statement of Profit and Loss and Other Comprehensive Income21Statement of Financial Position22Statement of Changes in Equity23Statement of Cash Flows
54、24Notes to the Financial Statements25Directors Declaration49Independent Auditors Report50Shareholder Information53Corporate Directory55NanaBis is a NON-ARTG MEDICINE UNDER CLINICAL TRIALmedlab.coINNOVATION-QUALITY-LIFE SCIENCES 11 DIRECTORS REPORTYour di rectors present thei r report on the consoli
55、dated enti ty consi sti ng of Medlab Cli ni cal Li mi ted and i ts controlled enti ti esat the end of,or duri ng,the year ended 30 June 2018.DirectorsThe followi ng persons were di rectors of the company duri ng the year and up to the date of thi s report,unless otherwi se stated:S.M.Hall M.J.Hall D
56、.A.Townsend Di rectors have been i n offi ce si nce the start of the fi nanci al year to the date of thi s report unless otherwi se stated.Principal ActivitiesThe pri nci pal acti vi ti es of the consoli dated group are:Sale of nutraceuti cal productsPharmaceuti cal research and commerci ali sati on
57、No si gni fi cant changes i n the nature of these acti vi ti es occurred duri ng the peri od.Review of OperationsThe loss of the consoli dated group after provi di ng for i ncome tax and non-controlli ng i nterest amounted to$4,570,395(2017:$3,657,644).At peri od end,the consoli dated group had tota
58、l assets of$24,326,972(2017:$4,697,554)and total li abi li ti es of$2,468,409(2017:$1,647,065).A more detai led operati ons revi ew can be found i n the CEO report.Significant Changes in the State of Affairs.No si gni fi cant changes i n the consoli dated groups state of affai rs occurred duri ng th
59、e peri od.After Balance Date EventsNo matters or ci rcumstances have ari sen si nce 30 June 2018 whi ch si gni fi cantly affected or may si gni fi cantly affect theoperati ons of the consoli dated group,the results of those operati ons,or the state of affai rs of the consoli dated group i n futurefi
60、 nanci al years.medlab.coINNOVATION-QUALITY-LIFE SCIENCES 12 Information Relating to Directors and Company SecretaryName:Mi chael HallTi tle:Non-Executi ve Chai rmanQuali fi cati ons:B.Com,CPAExperi ence:Mi chael has a long hi story i n the management and bui ldi ng of successful nutri ti on compani
61、 es.Mi chaels early career was i n accounti ng,retai li ng and pri vate banki ng.Other current di rectorshi ps:NoneFormer di rectorshi ps(last 3 years)NoneSpeci al responsi bi li ti esMember of:Ri sk Management and Audi t Commi tteeNomi nati on and Remunerati on Commi tteeInterest i n shares:15,184,
62、445 ordi nary sharesInterest i n opti ons:850,000 unquoted opti onsContractual ri ght to shares:NoneName:Sean HallTi tle:Managi ng Di rector and Chi ef Executi ve Offi cerQuali fi cati ons:MD,MBA(Cli n Phm Mgt)Experi ence:Sean has over 20 years experi ence i n the Australi an Healthcare and food i n
63、dustri es and early phase drug di scovery i n Australi a and Asi a.Sean i s best known for bui ldi ng Australi as leadi ng practi ti oner brand,Bi oCeuti cals.Sean i s an acti ve member of Medi ci nes Australi a,Ameri can Federati on for Medi cal Research,Ameri can Academy of Anti-Agei ng Medi ci ne
64、,Ausbi otech,a member of the Sci enti fi c Advi sory Board for BITs Li fe Sci ence Chi na and a Board Member of the Internati onal Probi oti cs Associ ati on.Sean has completed Executi ve Educati on at Harvard Graduate School of Busi ness and more recently conti nui ng Medi cal Educati on through Ha
65、rvard Medi cal School.Other current di rectorshi ps:NoneFormer di rectorshi ps(last 3 years)NoneSpeci al responsi bi li ti esMember of:Nomi nati on and Remunerati on Commi tteeInterest i n shares:55,755,555 ordi nary sharesInterest i n opti ons:5,000,000 unquoted opti onsContractual ri ght to shares
66、:NoneName:Drew TownsendTi tle:Non-Executi ve Di rectorQuali fi cati ons:B.Com,CA,MAICD Experi ence:Drew i s a seni or partner i n the chartered accounti ng fi rm of Hall Chadwi ck and has been a partner i n thi s fi rm for over 25 years.He i s an experi enced chartered accountant and corporate advi
67、sor to numerous SMEs.Other current di rectorshi ps:Non-Executi ve Chai rman of Qantum Energy Li mi tedFormer di rectorshi ps(last 3 years)NoneSpeci al responsi bi li ti esChai rman of:Ri sk Management and Audi t Commi tteeNomi nati on and Remunerati on Commi tteeInterest i n shares:16,055,553 ordi n
68、ary sharesInterest i n opti ons:NoneContractual ri ght to shares:NoneName:Alan Dworki nTi tle:Company SecretaryQuali fi cati ons:B.Bus,CA,ACSA,GAICDExperi ence:Alan i s a Chartered Accountant wi th over 18 years experi ence i n tax,resources and nutraceuti cal sectors,i ncludi ng the last si x years
69、 as CFO and Company Secretary of FIT-Bi oCeuti cals Li mi ted.medlab.coINNOVATION-QUALITY-LIFE SCIENCES 13 Meetings of directorsThe number of meeti ngs of the companys Board of Di rectors(the Board)and of each Board commi ttee held duri ng the yearended 30 June 2018,and the number of meeti ngs atten
70、ded by each di rector were:Held:represents the number of meeti ngs held duri ng the ti me the di rector held offi ce or was a member of the relevantcommi ttee.Future DevelopmentsLi kely developments i n the operati ons of the consoli dated group and the expected results of those operati ons i n futu
71、re fi nanci alyears have not been i ncluded i n thi s report as the i nclusi on of such i nformati on i s li kely to result i n unreasonable prejudi ce tothe consoli dated group.Environmental IssuesThe consoli dated groups operati ons are not regulated by any si gni fi cant envi ronmental regulati o
72、ns under a law of theCommonwealth or of a State or Terri tory.Shares under OptionAt the date of thi s report,the uni ssued ordi nary shares of Medlab Cli ni cal Li mi ted under opti on are as follows:Opti on holders do not have ri ghts to parti ci pate i n any i ssue of shares or other i nterests i
73、n the company or any other enti ty.Michael HallDrew TownsendSean Hall111111NameAttendedNomination andRemuneration CommitteeRisk Management andAudit CommitteeHeldAttendedHeldAttendedHeld11111111111122-22-Full BoardNumber under option17 April 201410 July 20152 November 201530 June 201930 June 202030 J
74、une 2019$0.30$0.30$0.307,350,0001,541,7251,000,000Grant dateDate of expiryExercise pricemedlab.coINNOVATION-QUALITY-LIFE SCIENCES 14 REMUNERATION REPORTThe remunerati on report detai ls the key management personnel remunerati on arrangements for the consoli dated enti ty,i naccordance wi th the requ
75、i rements of the Corporati ons Act 2001 and i ts Regulati ons.Key management personnel are those persons havi ng authori ty and responsi bi li ty for planni ng,di recti ng and controlli ng theacti vi ti es of the enti ty,di rectly or i ndi rectly,i ncludi ng all di rectors.The remunerati on report i
76、 s set out under the followi ng mai n headi ngs:Pri nci ples used to determi ne the nature and amount of remunerati onDetai ls of remunerati onServi ce agreementsShare-based compensati onPrinciples used to determine the nature and amount of remunerationThe objecti ve of the consoli dated enti tys ex
77、ecuti ve reward framework i s to ensure reward for performance i s competi ti ve andappropri ate for the results deli vered.The framework ali gns executi ve reward wi th the achi evement of strategi c objecti ves andthe creati on of value for shareholders,and conforms to the market best practi ce fo
78、r the deli very of reward.The Board ofDi rectors(the Board)ensures that executi ve reward sati sfi es the followi ng key cri teri a for good reward governance practi ces:Competi ti veness and reasonablenessAcceptabi li ty to shareholdersPerformance li nkage/ali gnment of executi ve compensati onTran
79、sparencyThe Nomi nati on and Remunerati on Commi ttee i s responsi ble for determi ni ng and revi ewi ng remunerati on arrangements fori ts di rectors and executi ves.The performance of the consoli dated enti ty depends on the quali ty of i ts di rectors and executi ves.The remunerati on phi losophy
80、 i s to attract,moti vate and retai n hi gh performance and hi gh quali ty personnel.The Nomi nati on and Remunerati on Commi ttee has structured an executi ve remunerati on framework that i s market competi ti veand complementary to the reward strategy of the consoli dated enti ty.Ali gnment to sha
81、reholders i nterests:Has economi c profi t as a core component of plan desi gnFocuses on sustai ned growth i n shareholder wealth,consi sti ng of di vi dends and growth i n share pri ce,and deli veri ng constant or i ncreasi ng return on assets as well as focusi ng the executi ve on key non-fi nanci
82、 al dri vers of valueAttracts and retai ns hi gh cali bre executi vesAli gnment to program parti ci pants i nterests:Rewards capabi li ty and experi enceReflects competi ti ve reward for contri buti on to growth i n shareholder wealthProvi des a clear structure for earni ng rewardsIn accordance wi t
83、h best practi ce corporate governance,the structure of non-executi ve di rectors and executi ve remunerati onsi s separate.Non-executive directors remunerationFees and payments to non-executi ve di rectors reflect the demands and responsi bi li ti es of thei r role.Non-executi ve di rectorsfees and
84、payments are revi ewed annually by the Nomi nati on and Remunerati on Commi ttee.The Nomi nati on andRemunerati on Commi ttee may,from ti me to ti me,recei ve advi ce from i ndependent remunerati on consultants to ensure non-executi ve di rectors fees and payments are appropri ate and i n li ne wi t
85、h the market.The chai rmans fees are determi nedi ndependently to the fees of other non-executi ve di rectors based on comparati ve roles i n the external market.The chai rmani s not present at any di scussi ons relati ng to the determi nati on of hi s own remunerati on.ASX li sti ng rules requi re
86、the aggregate non-executi ve di rectors remunerati on be determi ned peri odi cally by a general meeti ng.The most recent determi nati on was at the Annual General Meeti ng held on 26 October 2015,where the shareholders approveda maxi mum annual aggregate remunerati on of$300,000.medlab.coINNOVATION
87、-QUALITY-LIFE SCIENCES 15 Executive remunerationThe consoli dated enti ty ai ms to reward executi ves wi th a level and mi x of remunerati on based on thei r posi ti on andresponsi bi li ty,whi ch has both fi xed and vari able components.The executi ve remunerati on and reward framework has four com
88、ponents:Base pay and non-monetary benefi tsShort-term performance i ncenti vesShare-based paymentsOther remunerati on such as superannuati on and long servi ce leaveThe combi nati on of these compri ses the executi ves total remunerati on.Fi xed remunerati on,consi sti ng of base salary,superannuati
89、 on and non-monetary benefi ts,are revi ewed annually by theNomi nati on and Remunerati on Commi ttee,based on i ndi vi dual and busi ness uni t performance,the overall performance ofthe consoli dated enti ty and comparable market remunerati ons.Executi ves may recei ve thei r fi xed remunerati on i
90、 n the form of cash or other fri nge benefi ts(for example motor vehi cle benefi ts)where i t does not create any addi ti onal costs to the consoli dated enti ty and provi des addi ti onal value to the executi ve.The short-term i ncenti ves(STI)program i s desi gned to ali gn the targets of the busi
91、 ness uni ts wi th the performance hurdlesof executi ves.STI payments are granted to executi ves based on speci fi c annual targets and key performance i ndi cators(KPIs)bei ng achi eved.KPIs i nclude profi t contri buti on,customer sati sfacti on,leadershi p contri buti on and product management.Th
92、e long-term i ncenti ves(LTI)i nclude long servi ce leave and share-based payments.Shares are awarded to executi ves underthe shareholder approved Employee Share Opti on Plan(ESOP)based on long-term i ncenti ve measures.These i nclude i ncreasei n shareholders value relati ve to the enti re market a
93、nd the i ncrease compared to the consoli dated enti tys di rect competi tors.The Nomi nati on and Remunerati on Commi ttee revi ewed the long-term equi ty-li nked performance i ncenti ves speci fi cally forexecuti ves duri ng the year ended 30 June 2018.As at 30 June 2018,no opti ons were i ssued un
94、der the ESOP.Voting and comments made at the companys 2017 Annual General Meeting(AGM)At the 2017 AGM,100.00%of the votes recei ved supported the adopti on of the remunerati on report for the year ended 30June 2017.The Company di d not recei ve any speci fi c feedback at the AGM regardi ng i ts remu
95、nerati on package.Details of remunerationAmounts of remunerationDetai ls of the remunerati on of key management personnel of the consoli dated enti ty are set out i n the followi ng tables.The key management personnel of the consoli dated enti ty consi sted of the followi ng di rectors of Medlab Cli
96、 ni cal Li mi ted:Mi chael Hall Non-Executi ve Chai rmanDrew Townsend Non-Executi ve Di rectorSean Hall Managi ng Di rector and Chi ef Executi ve Offi cerAnd the followi ng persons:Alan Dworki n Chi ef Fi nanci al Offi cer and Company Secretary Dr Lui s Vi tetta Di rector of Medi cal ResearchDr Davi
97、 d Rutolo Di rector of Sci enceMr Paul Vi lner Di rector of Commerci al Operati ons(appoi nted 4 June 2018)medlab.coINNOVATION-QUALITY-LIFE SCIENCES 16*Commenced 4 June 2018The proporti on of remunerati on li nked to performance and the fi xed proporti on are as follows:2018Short-term benefitsShare-
98、basedbenefitsCash salaryand fees$Cashbonus$Non-monetary$Super-annuation$Equitysettled$Post-employmentbenefitsTotal$Directors:Michael HallDrew TownsendSean HallOther Key Management Personnel:Alan DworkinLuis VitettaDavid RutoloPaul Vilner*124,86360,225299,178178,183250,250154,74919,1211,086,589129,60
99、060,225327,600194,991274,024167,57520,7651,174,780-4,737-28,42216,80823,77412,8261,64488,211-2017Short-term benefitsShare-basedbenefitsCash salaryand fees$Cashbonus$Non-monetary$Super-annuation$Equitysettled$Post-employmentbenefitsTotal$Directors:Michael HallDrew TownsendSean HallOther Key Managemen
100、t Personnel:Alan DworkinLuis VitettaDavid Rutolo124,86360,225299,178171,260250,250159,1511,064,927129,60060,225327,600187,410274,024172,3411,151,200-4,737-28,42216,15023,77413,19086,273-Directors:Michael HallDrew TownsendSean HallOther Key Management Personnel:Alan DworkinLuis VitettaDavid RutoloPau
101、l Vilner100%100%100%100%100%100%100%Fixed remuneration2018-%-%-%-%-%-%-%-%-%-%-%-%-%-%-%-%-%-%-%-%-%-%-%-%-%-%100%100%100%100%100%100%-20172018201720182017At risk-LTIAt risk-STINamemedlab.coINNOVATION-QUALITY-LIFE SCIENCES 17 Service agreementsRemunerati on and other terms of employment for key mana
102、gement personnel are formali sed i n servi ce agreements oremployment contracts.Detai ls of these agreements are as follows:Name:Sean HallTi tle:Managi ng Di rector and Chi ef Executi ve Offi cerAgreement commenced:1 July 2012Term of agreement:No Fi xed TermDetai ls:Base salary for the year endi ng
103、30 June 2018 of$300,000 plus superannuati on,to be revi ewed annually by the Nomi nati on and Remunerati on Commi ttee.12 month termi nati on noti ce by ei ther party,non-soli ci tati on and non-compete clauses.Name:Alan Dworki nTi tle:Chi ef Fi nanci al Offi cer and Company Secretary Agreement comm
104、enced:9 February 2015Term of agreement:No Fi xed TermDetai ls:Base salary for the year endi ng 30 June 2018 of$200,000 plus superannuati on,to be revi ewed annually by the Nomi nati on and Remunerati on Commi ttee.4 weeks termi nati on noti ce by ei ther party,eli gi ble to be part of the consoli da
105、ted enti tys ESOP.Name:Lui s Vi tettaTi tle:Di rector of Medi cal ResearchAgreement commenced:4 March 2013Term of agreement:No Fi xed TermDetai ls:Base salary for the year endi ng 30 June 2018 of$250,250 plus superannuati on,to be revi ewed annually by the Nomi nati on and Remunerati on Commi ttee.2
106、 weeks termi nati on noti ce by ei ther party,eli gi ble to be part of the consoli dated enti tys ESOP.Name:Davi d RutoloTi tle:Di rector of Sci enceAgreement commenced:22 January 2015Term of agreement:No Fi xed TermDetai ls:Base salary for the year endi ng 30 June 2018 of US$120,000 plus employment
107、 benefi ts,to be revi ewed annually by the Nomi nati on and Remunerati on Commi ttee.30 days termi nati on noti ce by ei ther party.Name:Paul Vi lnerTi tle:Di rector of Commerci al Operati onsAgreement commenced:4 June 2018Term of agreement:No Fi xed TermDetai ls:Base salary for the year endi ng 30
108、June 2018 of$300,000,a motor vehi cle allowance of$30,000 plus superannuati on,to be revi ewed annually by the Nomi nati on and Remunerati on Commi ttee.3 Months termi nati on noti ce by ei ther party.Key management personnel have no enti tlement to termi nati on payments i n the event of removal fo
109、r mi sconduct.medlab.coINNOVATION-QUALITY-LIFE SCIENCES 18 Share-based compensationOptionsThe terms and condi ti ons of each grant of opti ons over ordi nary shares affecti ng remunerati on of di rectors and other keymanagement personnel i n thi s fi nanci al year or future reporti ng years are as f
110、ollows:Opti ons granted carry no di vi dend or voti ng ri ghts.The number of opti ons over ordi nary shares granted to and vested by di rectors and other key management personnel as partof compensati on duri ng the year ended 30 June 2018 are set out below:Values of opti ons over ordi nary shares gr
111、anted,exerci sed and lapsed for di rectors and other key management personnel aspart of compensati on duri ng the year ended 30 June 2018 are set out below:Thi s concludes the remunerati on report,whi ch has been audi ted.NoneVesting date andexercisable date$Exercise priceExpiry dateGrant dateMichae
112、l HallSean HallLuis VitettaAlan Dworkin-Number ofoptions grantedduring theyear 2018Number ofoptions vestedduring theyear 2017Number ofoptions grantedduring theyear 2017Number ofoptions vestedduring theyear 2018NameBalance atthe endof the yearExercisedGrantedBalance atthe startof the yearMichael Hall
113、3,500,000850,000(2,650,000)-medlab.coINNOVATION-QUALITY-LIFE SCIENCES 19 Indemnification of OfficersNo i ndemni ti es have been gi ven or i nsurance premi ums pai d,duri ng the fi nanci al year,for any person who i s or has been anoffi cer or audi tor of the controlled group.Proceedings on behalf of
114、 the CompanyNo person has appli ed for leave of Court to bri ng proceedi ngs on behalf of the Company or i ntervene i n any proceedi ngs towhi ch the Company i s a party for the purpose of taki ng responsi bi li ty on behalf of the company for all or any part of thoseproceedi ngs.The company was not
115、 a party to any such proceedi ngs duri ng the year.Non-Audit ServicesDetai ls of the amounts pai d or payable to the audi tor for non-audi t servi ces provi ded duri ng the fi nanci al year by the audi torare outli ned i n note 21 to the fi nanci al statements.The di rectors are sati sfi ed that the
116、 provi si on of non-audi t servi ces duri ng the fi nanci al year,by the audi tor(or by another personor fi rm on the audi tors behalf),i s compati ble wi th the general standard of i ndependence for audi tors i mposed by theCorporati ons Act 2001.The di rectors are of the opi ni on that the servi c
117、es as di sclosed i n note 21 to the fi nanci al statements do not compromi se theexternal audi tors i ndependence requi rements of the Corporati ons Act 2001 for the followi ng reasons:All non-audi t servi ces have been revi ewed and approved to ensure that they do not i mpact the i ntegri ty and ob
118、jecti vi ty of the audi tor;andNone of the servi ces undermi ne the general pri nci ples relati ng to audi tor i ndependence as set out i n APES 110 Code of Ethi cs for Professi onal Accountants i ssued by the Accounti ng Professi onal and Ethi cal Standards Board,i ncludi ng revi ewi ng or audi ti
119、ng the audi tors own work,acti ng i n a management or deci si on-maki ng capaci ty for the company,acti ng as advocate for the company or joi ntly shari ng economi c ri sks and rewards.Auditors Independence DeclarationThe audi tors i ndependence declarati on for the year ended 30 June 2018 has been
120、recei ved and can be found on page 20 ofthe fi nanci al report.Si gned i n accordance wi th a resoluti on of the Board of Di rectors.S HallD TownsendDi rectorDi rectorDated thi s 31stday of August 2018medlab.coINNOVATION-QUALITY-LIFE SCIENCES 21 STATEMENT OF PROFIT AND LOSSAND OTHER COMPREHENSIVE IN
121、COMEFOR THE YEAR ENDED 30 JUNE 2018The accompanying notes form part of these financial statementsConsolidatedRevenueRaw materials and consumables usedEmployee benefits expenseDepreciation and amortisation expenseProfessional and consulting feesOperating lease costsFinance costsSelling&marketing expe
122、nsesOther expensesLoss before income taxIncome tax expenseNet loss for the periodOther comprehensive incomeItems that will not be reclassified subsequently to profit or lossForeign currency translationOther comprehensive loss for the year,net of taxTotal comprehensive loss for the yearNet loss attri
123、butable to:Members of the parent entityNon-controlling interestTotal comprehensive loss attributable to:Members of the parent entityNon-controlling interestEarnings per share Basic earnings per shareDiluted earnings per share4,446,533(1,725,322)(3,395,681)(110,408)(764,668)(372,914)(16,143)(490,218)
124、(1,409,359)(3,838,180)-(3,838,180)9,9959,995(3,828,185)(3,657,644)(180,536)(3,838,180)(3,651,647)(176,538)(3,828,185)Cents(2.08)(1.98)5,546,396(2,017,880)(4,122,591)(112,355)(769,769)(414,831)(54,957)(647,320)(2,164,894)(4,758,201)-(4,758,201)1,2751,275(4,756,926)(4,570,395)(187,806)(4,758,201)(4,56
125、9,631)(187,295)(4,756,926)Cents(2.39)(2.32)34528282018$2017$Notesmedlab.coINNOVATION-QUALITY-LIFE SCIENCES 22 STATEMENT OF FINANCIAL POSITIONAS AT 30 JUNE 2018The accompanying notes form part of these financial statements.ConsolidatedASSETSCurrent AssetsCash and cash equivalentsTrade and other recei
126、vablesInventoriesOther assetsTotal Current AssetsNon-Current AssetsOther assetsProperty,plant and equipmentTotal Non-Current AssetsTOTAL ASSETSLIABILITIESCurrent LiabilitiesTrade and other payablesEmployee benefitsBorrowingsTotal Current LiabilitiesNon-Current LiabilitiesEmployee benefitsProvisionsO
127、ther liabilitiesBorrowingsTotal Non-Current LiabilitiesTOTAL LIABILITIESNET ASSETSEQUITYIssued capitalReservesAccumulated lossesEquity attributable to the owners of Medlab Clinical LimitedOutside equity interest TOTAL EQUITY2018$Notes1,497,6001,700,790761,059228,7224,188,17156,411452,972509,3834,697
128、,5541,062,439194,32132,2671,289,02744,05947,5002,025264,454358,0381,647,0653,050,48915,598,42068,040(11,782,906)3,883,554(833,065)3,050,48920,332,6942,055,8721,164,035262,14523,814,74674,452437,774512,22624,326,9721,588,518261,570499,7032,349,79161,11857,500-118,6182,468,40921,858,56339,163,42068,80
129、4(16,353,301)22,878,923(1,020,360)21,858,56367899101112131214151316172017$medlab.coINNOVATION-QUALITY-LIFE SCIENCES 23 STATEMENT OF CHANGES IN EQUITYFOR THE YEAR ENDED 30 JUNE 2018The accompanying notes form part of these financial statements.Consolidated GroupBalance at 1 July 2016Loss after income
130、 tax for the periodOther comprehensive income for the period,net of taxTotal comprehensive income for the periodTransactions with owners in their capacity as owners:Contributions of equity,net of transaction costs(Note 16)Balance at 30 June 201710,611,410-4,987,01015,598,420(8,125,262)(3,657,644)(3,
131、657,644)(11,782,906)62,0435,9975,99768,0402,548,191(3,657,644)5,997(3,651,647)4,987,0103,883,554(656,527)(180,536)3,998(176,538)(833,065)1,891,664(3,838,180)9,995(3,828,185)4,987,0103,050,489AccumulatedLossesAttributableto membersof the parentcompany$Total$Non-ControllingInterests$Attributableto own
132、ersof the parent$Reserves$IssuedCapital$Consolidated GroupBalance at 1 July 2017Loss after income tax for the periodOther comprehensive income for the period,net of taxTotal comprehensive income for the periodTransactions with owners in their capacity as owners:Contributions of equity,net of transac
133、tion costs(Note 16)Balance at 30 June 201815,598,420-23,565,00039,163,420(11,782,906)(4,570,395)(4,570,395)(16,353,301)68,04076476468,8043,883,554(4,570,395)764(4,569,631)23,565,00022,878,923(833,065)(187,806)511(187,295)(1,020,360)3,050,489(4,758,201)1,275(4,756,926)23,565,00021,858,563AccumulatedL
134、ossesAttributableto membersof the parentcompany$Total$Non-ControllingInterests$Attributableto ownersof the parent$Reserves$IssuedCapital$medlab.coINNOVATION-QUALITY-LIFE SCIENCES 24 STATEMENT OF CASH FLOWSFOR THE YEAR ENDED 30 JUNE 2018The accompanying notes form part of these financial statements.C
135、onsolidatedCash Flows from Operating ActivitiesReceipts from customersReceipts from R&D Tax refundPayments to suppliers and employeesFinance costsInterest receivedNet cash used in operating activitiesCash flows from Investing ActivitiesPurchase of plant and equipmentNet cash used in investing activi
136、tiesCash flows from Financing ActivitiesRepayment of borrowingsProceeds from borrowingsProceeds from issue of sharesShare issue transaction costsNet cash from financing activitiesNet decrease in cash heldCash and cash equivalents at beginning of financial yearExchange rate adjustmentsCash and cash e
137、quivalents at end of the financial year3,193,297911,325(8,413,620)(4,737)50,858(4,262,877)(66,726)(66,726)(59,401)72,1405,361,150(374,140)4,999,749670,146801,36826,0861,497,6004,693,014927,245(10,485,609)(54,957)144,941(4,775,366)(96,477)(96,477)(2,287,018)2,490,00024,795,000(1,320,000)23,677,98218,
138、806,1391,497,60028,95520,332,694662018$2017$Notesmedlab.coINNOVATION-QUALITY-LIFE SCIENCES 25 NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2018The consoli dated fi nanci al statements and notes represent those of Medlab Cli ni cal Li mi ted and controlled enti ti es(Company,Group or c
139、onsoli dated enti ty).The place of busi ness of the Parent Company i s:Medlab Cli ni cal Li mi ted66 McCauley StreetAlexandri a NSW 2015In accordance wi th the Corporati ons Act 2001,these fi nanci al statements present the results of the consoli dated enti ty only.Supplementary i nformati on about
140、the parent enti ty i s di sclosed i n Note 2.The Fi nanci al Statements were authori sed for i ssue by the Di rectors on 31 August 2018.NOTE 1 SIGNIFICANT ACCOUNTING POLICIESBASIS OF PREPARATIONThese general purpose fi nanci al statements have been prepared i n accordance wi th Australi an Accounti
141、ng Standards andInterpretati ons i ssued by the Australi an Accounti ng Standards Board(AASB)and the Corporati ons Act 2001,as appropri atefor for-profi t ori ented enti ti es.These fi nanci al statements also comply wi th Internati onal Fi nanci al Reporti ng Standards asi ssued by the Internati on
142、al Accounti ng Standards Board(IASB).The fi nanci al statements have been prepared under the hi stori cal cost conventi on.The preparati on of the fi nanci al statements requi res the use of certai n cri ti cal accounti ng esti mates.It also requi resmanagement to exerci se i ts judgement i n the pr
143、ocess of applyi ng the companys accounti ng poli ci es.The areas i nvolvi ng ahi gher degree of judgement or complexi ty,or areas where assumpti ons and esti mates are si gni fi cant to the fi nanci al statements,are di sclosed i n Note 1.1.2 BASIS OF CONSOLIDATIONThe consoli dated fi nanci al state
144、ments i ncorporate the assets and li abi li ti es of all subsi di ari es of Medlab Cli ni cal Li mi ted(company or parent enti ty)as at 30 June 2018 and the results of all subsi di ari es for the peri od then ended.Medlab Cli ni calLi mi ted and i ts subsi di ari es together are referred to i n thes
145、e fi nanci al statements as the consoli dated enti ty.Subsi di ari es are all those enti ti es over whi ch the consoli dated enti ty has control.The consoli dated enti ty controls an enti tywhen the consoli dated enti ty i s exposed to,or has ri ghts to,vari able returns from i ts i nvolvement wi th
146、 the enti ty and has theabi li ty to affect those returns through i ts power to di rect the acti vi ti es of the enti ty.Subsi di ari es are fully consoli dated from thedate on whi ch control i s transferred to the consoli dated enti ty.They are de-consoli dated from the date that control ceases.Int
147、ercompany transacti ons,balances and unreali sed gai ns on transacti ons between enti ti es i n the consoli dated enti ty areeli mi nated.Unreali sed losses are also eli mi nated unless the transacti on provi des evi dence of the i mpai rment of the assettransferred.Accounti ng poli ci es of subsi d
148、i ari es have been changed where necessary to ensure consi stency wi th the poli ci esadopted by the consoli dated enti ty.The acqui si ti on of subsi di ari es i s accounted for usi ng the acqui si ti on method of accounti ng.A change i n ownershi p i nterest,wi thout the loss of control,i s accoun
149、ted for as an equi ty transacti on,where the di fference between the consi derati ontransferred and the book value of the share of the non-controlli ng i nterest acqui red i s recogni sed di rectly i n equi ty attri butableto the parent.Non-controlli ng i nterest i n the results and equi ty of subsi
150、 di ari es are shown separately i n the statement of profi t or loss andother comprehensi ve i ncome,statement of fi nanci al posi ti on and statement of changes i n equi ty of the consoli dated enti ty.Losses i ncurred by the consoli dated enti ty are attri buted to the non-controlli ng i nterest i
151、 n full,even i f that results i n a defi ci tbalance.medlab.coINNOVATION-QUALITY-LIFE SCIENCES 26 NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2018SIGNIFICANT ACCOUNTING POLICIES(CONTINUED)1.3CASH AND CASH EQUIVALENTS Cash and cash equi valents i ncludes cash on hand,deposi ts held at
152、 call wi th fi nanci al i nsti tuti ons,other short-term,hi ghly li qui di nvestments wi th ori gi nal maturi ti es of three months or less that are readi ly converti ble to known amounts of cash and whi chare subject to an i nsi gni fi cant ri sk of changes i n value.1.4 INVENTORIESRaw materi als(c
153、apsules,bottles and labels),work i n progress and fi ni shed goods are stated at the lower of cost and netreali sable value on a wei ghted average basi s.Cost compri ses di rect materi als and deli very costs,i mport duti es and other taxes.Costs of purchased i nventory are determi ned after deducti
154、 ng rebates and di scounts recei ved or recei vable.Stock i n transi t i s stated at the lower of cost and net reali sable value.Cost compri ses purchase and deli very costs,net of rebatesand di scounts recei ved or recei vable.Net reali sable value i s the esti mated selli ng pri ce i n the ordi na
155、ry course of busi ness less the esti mated costs of completi on andthe esti mated costs necessary to make the sale.Culture librariesCosts associ ated wi th the acqui si ti on of culture li brari es are expensed i n the peri od i n whi ch they are i ncurred.1.5PROPERTY,PLANT AND EQUIPMENTPlant and eq
156、ui pment i s stated at hi stori cal cost less accumulated depreci ati on and i mpai rment.Hi stori cal cost i ncludesexpendi ture that i s di rectly attri butable to the acqui si ti on of the i tems.Depreci ati on i s calculated on a strai ght-li ne or di mi ni shi ng value basi s to wri te off the
157、net cost of each i tem of property,plantand equi pment(excludi ng land)over thei r expected useful li ves as follows:Leasehold i mprovements3-15 yearsPlant and equi pment3-13 yearsOffi ce furni ture and equi pment3-10 yearsThe resi dual values,useful li ves and depreci ati on methods are revi ewed,a
158、nd adjusted i f appropri ate,at each reporti ng date.Leasehold i mprovements and plant and equi pment under lease are depreci ated over the unexpi red peri od of the lease or theesti mated useful li fe of the assets,whi chever i s shorter.An i tem of property,plant and equi pment i s derecogni sed u
159、pon di sposal or when there i s no future economi c benefi t to thecompany.Gai ns and losses between the carryi ng amount and the di sposal proceeds are taken to profi t or loss.Any revaluati onsurplus reserve relati ng to the i tem di sposed of i s transferred di rectly to retai ned profi ts.medlab
160、.coINNOVATION-QUALITY-LIFE SCIENCES 27 NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2018SIGNIFICANT ACCOUNTING POLICIES(CONTINUED)1.6IMPAIRMENT OF NON-FINANCIAL ASSETSNon-fi nanci al assets are revi ewed for i mpai rment whenever events or changes i n ci rcumstances i ndi cate that th
161、e carryi ngamount may not be recoverable.An i mpai rment loss i s recogni sed for the amount by whi ch the assets carryi ng amountexceeds i ts recoverable amount.Recoverable amount i s the hi gher of an assets fai r value less costs of di sposal and value-i n-use.The value-i n-use i s the presentval
162、ue of the esti mated future cash flows relati ng to the asset usi ng a pre-tax di scount rate speci fi c to the asset or cash-generati ng uni t to whi ch the asset belongs.Assets that do not have i ndependent cash flows are grouped together to form acash-generati ng uni t.1.7LEASINGThe determi nati
163、on of whether an arrangement i s or contai ns a lease i s based on the substance of the arrangement and requi resan assessment of whether the fulfi lment of the arrangement i s dependent on the use of a speci fi c asset or assets and thearrangement conveys a ri ght to use the asset.A di sti ncti on
164、i s made between fi nance leases,whi ch effecti vely transfer from the lessor to the lessee substanti ally all the ri sksand benefi ts i nci dental to ownershi p of leased assets,and operati ng leases,under whi ch the lessor effecti vely retai nssubstanti ally all such ri sks and benefi ts.Operati n
165、g lease payments,net of any i ncenti ves recei ved from the lessor,are charged to profi t or loss on a strai ght li ne basi sover the term of the lease.1.8PROVISIONSProvi si ons are recogni sed when the Group has a present obli gati on(legal or constructi ve)as a result of a past event,i t i sprobab
166、le that the Group wi ll be requi red to settle the obli gati on,and a reli able esti mate can be made of the amount of theobli gati on.The amount recogni sed as a provi si on i s the best esti mate of the consi derati on requi red to settle the present obli gati on at theend of the reporti ng peri o
167、d,taki ng i nto account the ri sks and uncertai nti es surroundi ng the obli gati on.Where a provi si on i smeasured usi ng the cash flows esti mated to settle the present obli gati on,i ts carryi ng amount i s the present value of thosecash flows(where the effect of the ti me value of money i s mat
168、eri al).When some or all of the economi c benefi ts requi red to settle a provi si on are expected to be recovered from a thi rd party,therecei vable i s recogni sed as an asset i f i t i s vi rtually certai n that rei mbursement wi ll be recei ved and the amount of the recei vablecan be measured re
169、li ably.medlab.coINNOVATION-QUALITY-LIFE SCIENCES 28 NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2018SIGNIFICANT ACCOUNTING POLICIES(CONTINUED)1.9EMPLOYEE BENEFITSShort-term employee benefitsLi abi li ti es for wages and salari es,i ncludi ng non-monetary benefi ts,annual leave and l
170、ong servi ce leave expected to be settledwholly wi thi n 12 months of the reporti ng date are measured at the amounts expected to be pai d when the li abi li ti es are settled.Other long-term employee benefitsThe li abi li ty for long servi ce leave not expected to be settled wi thi n 12 months of t
171、he reporti ng date are measured at the presentvalue of expected future payments to be made i n respect of servi ces provi ded by employees up to the reporti ng date usi ngthe projected uni t credi t method.Consi derati on i s gi ven to expected future wage and salary levels,experi ence of employeede
172、partures and peri ods of servi ce.Expected future payments are di scounted usi ng market yi elds at the reporti ng date oncorporate bonds wi th terms to maturi ty and currency that match,as closely as possi ble,the esti mated future cash outflows.Share-based paymentsEqui ty-settled and cash-settled
173、share-based compensati on benefi ts are provi ded to employees.Equi ty-settled transacti ons are awards of shares,or opti ons over shares,that are provi ded to employees i n exchange for therenderi ng of servi ces.Cash-settled transacti ons are awards of cash for the exchange of servi ces,where the
174、amount of cash i sdetermi ned by reference to the share pri ce.The cost of equi ty-settled transacti ons are measured at fai r value on grant date.Fai r value i s i ndependently determi ned usi ngei ther the Bi nomi al or Black-Scholes opti on pri ci ng model that takes i nto account the exerci se p
175、ri ce,the term of the opti on,the i mpact of di luti on,the share pri ce at grant date and expected pri ce volati li ty of the underlyi ng share,the expected di vi dendyi eld and the ri sk free i nterest rate for the term of the opti on,together wi th non-vesti ng condi ti ons that do not determi ne
176、whether the consoli dated enti ty recei ves the servi ces that enti tle the employees to recei ve payment.No account i s taken ofany other vesti ng condi ti ons.The cost of equi ty-settled transacti ons are recogni sed as an expense wi th a correspondi ng i ncrease i n equi ty over the vesti ngperi
177、od.The cumulati ve charge to profi t or loss i s calculated based on the grant date fai r value of the award,the best esti mateof the number of awards that are li kely to vest and the expi red porti on of the vesti ng peri od.The amount recogni sed i n profi tor loss for the peri od i s the cumulati
178、 ve amount calculated at each reporti ng date less amounts already recogni sed i n previ ousperi ods.The cost of cash-settled transacti ons i s i ni ti ally,and at each reporti ng date unti l vested,determi ned by applyi ng ei ther theBi nomi al or Black-Scholes opti on pri ci ng model,taki ng i nto
179、 consi derati on the terms and condi ti ons on whi ch the award wasgranted.The cumulati ve charge to profi t or loss unti l settlement of the li abi li ty i s calculated as follows:duri ng the vesti ng peri od,the li abi li ty at each reporti ng date i s the fai r value of the award at that date mul
180、ti pli ed by the expi red porti on of the vesti ng peri od.from the end of the vesti ng peri od unti l settlement of the award,the li abi li ty i s the full fai r value of the li abi li ty at the reporti ng date.All changes i n the li abi li ty are recogni sed i n profi t or loss.The ulti mate cost
181、of cash-settled transacti ons i s the cash pai d tosettle the li abi li ty.Market condi ti ons are taken i nto consi derati on i n determi ni ng fai r value.Therefore,any awards subject to market condi ti onsare consi dered to vest i rrespecti ve of whether or not that market condi ti on has been me
182、t,provi ded all other condi ti ons aresati sfi ed.If equi ty-settled awards are modi fi ed,as a mi ni mum an expense i s recogni sed as i f the modi fi cati on has not been made.Anaddi ti onal expense i s recogni sed,over the remai ni ng vesti ng peri od,for any modi fi cati on that i ncreases the t
183、otal fai r value ofthe share-based compensati on benefi t as at the date of modi fi cati on.medlab.coINNOVATION-QUALITY-LIFE SCIENCES 29 NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2018SIGNIFICANT ACCOUNTING POLICIES(CONTINUED)1.10REVENUE RECOGNITIONRevenue i s recogni sed when i t i
184、 s probable that the economi c benefi t wi ll flow to the consoli dated enti ty and the revenue canbe reli ably measured.Revenue i s measured at the fai r value of the consi derati on recei ved or recei vable.Sale of nutraceuticalsSale of goods revenue i s recogni sed at the poi nt of sale,whi ch i
185、s at the ti me when the customers orders are despatched.Amounts di sclosed as revenue are net of sales returns and trade di scounts.R&D refundable tax offset Tax refundable tax offset i s recogni sed when there i s reasonable assurance that the i ncenti ve wi ll be recei ved and all attachedcondi ti
186、 ons wi ll be compli ed wi th.InterestInterest revenue i s recogni sed as i nterest accrues usi ng the effecti ve i nterest method.Thi s i s a method of calculati ng theamorti sed cost of a fi nanci al asset and allocati ng the i nterest i ncome over the relevant peri od usi ng the effecti ve i nter
187、est rate,whi ch i s the rate that exactly di scounts esti mated future cash recei pts through the expected li fe of the fi nanci al asset to thenet carryi ng amount of the fi nanci al asset.R&D contract revenueR&D contract revenue i s recogni sed by reference to the stage of the contracts.Stage of c
188、ompleti on i s measured by referenceto mi lestones achi eved as per the contract.Where the mi lestones are not clari fi ed as per the contract,revenue i s recogni sedbased on other i ndi cati ons as per the contract.1.11 FOREIGN CURRENCIES1.11.1Individual Controlled EntitiesThe i ndi vi dual Fi nanc
189、i al Statements of each Group enti ty are presented i n the currency of the pri mary economi c envi ronmenti n whi ch the enti ty operates(i ts functi onal currency).For the purpose of the consoli dated Fi nanci al Statements,the fi nanci alresults and fi nanci al posi ti on of each Group enti ty ar
190、e expressed i n Australi an Dollars($),whi ch i s the functi onal currency ofMedlab Cli ni cal Li mi ted,and the presentati on currency for the consoli dated Fi nanci al Statements.1.11.2Foreign Currency TransactionsIn prepari ng the Fi nanci al Statements of the i ndi vi dual enti ti es,transacti o
191、ns i n currenci es other than the enti tys functi onalcurrency(forei gn currenci es)are recogni sed at the rates of exchange prevai li ng on the dates of the transacti ons.At the end ofeach reporti ng peri od,monetary i tems denomi nated i n forei gn currenci es are retranslated at the rates prevai
192、li ng at that date.Non-monetary i tems carri ed at fai r value that are denomi nated i n forei gn currenci es are retranslated at the rates prevai li ng onthe date when the fai r value was determi ned.Non-monetary i tems that are measured i n terms of hi stori cal cost i n a forei gncurrency are not
193、 retranslated.1.11.3Foreign OperationsThe fi nanci al results and posi ti on of forei gn operati ons,whose functi onal currency i s di fferent from the Groups presentati oncurrency,are translated as follows:Assets and li abi li ti es are translated at year-end exchange rates prevai li ng at that rep
194、orti ng date;Income and expenses are translated at average exchange rates for the peri od where the average rate approxi mates the rate at the date of the transacti on;andRetai ned earni ngs are translated at the exchange rates prevai li ng at the date of the transacti on.Exchange di fferences ari s
195、i ng on translati on of forei gn operati ons are transferred di rectly to the Groups forei gn currencytranslati on reserve i n the statement of fi nanci al posi ti on.These di fferences are recogni sed i n the statement of profi t or lossand other comprehensi ve i ncome i n the peri od.The forei gn
196、currency reserve i s recogni sed i n profi t or loss when the forei gn operati on or net i nvestment i s di sposed of.medlab.coINNOVATION-QUALITY-LIFE SCIENCES 30 NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2018SIGNIFICANT ACCOUNTING POLICIES(CONTINUED)1.12GOODS AND SERVICE TAXRevenu
197、es,expenses and assets are recogni sed net of the amount of goods and servi ces tax(GST),except:where the amount of GST i ncurred i s not recoverable from the taxati on authori ty,i t i s recogni sed as part of the cost of acqui si ti on of an asset or as part of an i tem of expense;orfor recei vabl
198、es and payables whi ch are recogni sed i nclusi ve of GST.The net amount of GST recoverable from,or payable to,the taxati on authori ty i s i ncluded as part of recei vables or payables.Cash flows are i ncluded i n the consoli dated Statement of Cash Flows on a gross basi s.The GST component of cash
199、 flowsari si ng from i nvesti ng and fi nanci ng acti vi ti es whi ch i s recoverable from,or payable to,the taxati on authori ty i s classi fi ed wi thi noperati ng cash flows.1.13TAXATIONThe i ncome tax expense or benefi t for the peri od i s the tax payable on that peri ods taxable i ncome based
200、on the appli cablei ncome tax rate for each juri sdi cti on,adjusted by changes i n deferred tax assets and li abi li ti es attri butable to temporarydi fferences,unused tax losses and the adjustment recogni sed for pri or peri ods,where appli cable.Deferred tax assets and li abi li ti es are recogn
201、i sed for temporary di fferences at the tax rates expected to apply when the assetsare recovered or li abi li ti es are settled,based on those tax rates that are enacted or substanti vely enacted,except for:When the deferred i ncome tax asset or li abi li ty ari ses from the i ni ti al recogni ti on
202、 of goodwi ll or an asset or li abi li ty i n a transacti on that i s not a busi ness combi nati on and that,at the ti me of the transacti on,affects nei ther the accounti ng nor taxable profi ts;orWhen the taxable temporary di fference i s associ ated wi th i nterests i n subsi di ari es,associ ate
203、s or joi nt ventures,and the ti mi ng of the reversal can be controlled and i t i s probable that the temporary di fference wi ll not reverse i n the foreseeable future.The Company and i ts wholly owned Australi an resi dent enti ti es are part of a tax consoli dated group.As a consequence,allmember
204、s of the tax-consoli dated group are taxed as a si ngle enti ty.The head enti ty wi thi n the tax consoli dated group i s MedlabCli ni cal Li mi ted.1.14ISSUED CAPITALOrdi nary shares are classi fi ed as equi ty.Incremental costs di rectly attri butable to the i ssue of new shares or opti ons are sh
205、own i n equi ty as a deducti on,net of tax,from the proceeds.1.15EXPENSESResearch and developmentResearch and development costs are expensed i n the peri od i n whi ch they are i ncurred.Patents and trademarksCosts associ ated wi th patents and trademarks are expensed i n the peri od i n whi ch they
206、 are i ncurred.Website development costsCosts associ ated wi th websi te development are expensed i n the peri od i n whi ch they are i ncurred.medlab.coINNOVATION-QUALITY-LIFE SCIENCES 31 NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2018SIGNIFICANT ACCOUNTING POLICIES(CONTINUED)1.16T
207、RADE AND OTHER RECEIVABLESTrade recei vables are recogni sed and carri ed at ori gi nal i nvoi ce amount less a provi si on for any uncollectable debts.An esti matefor doubtful debts i s made when there i s objecti ve evi dence that the Group wi ll not be able to collect the recei vable.Fi nanci ald
208、i ffi culti es of the debtor and default payments are consi dered objecti ve evi dence of i mpai rment.Bad debts are wri tten offwhen i denti fi ed as uncollectable.1.17TRADE AND OTHER PAYABLESLi abi li ti es for trade credi tors are carri ed at cost whi ch i s the fai r value of the consi derati on
209、 to be pai d i n the future for goods orservi ces recei ved,whether or not bi lled to the Group at balance date.The amounts are unsecured and are usually pai d wi thi n30 days of recogni ti on.1.18BORROWINGSLoans and borrowi ngs are i ni ti ally recogni sed at the fai r value of the consi derati on
210、recei ved,net of transacti on costs.1.19EARNINGS PER SHAREBasic earnings per shareBasi c earni ngs per share i s calculated by di vi di ng the profi t or loss attri butable to the owners of Medlab Cli ni cal Li mi ted,excludi ng any costs of servi ci ng equi ty other than ordi nary shares,by the wei
211、 ghted average number of ordi nary sharesoutstandi ng duri ng the fi nanci al year,adjusted for bonus elements i n ordi nary shares i ssued duri ng the fi nanci al year.Diluted earnings per shareDi luted earni ngs per share adjusts the fi gures used i n the determi nati on of basi c earni ngs per sh
212、are to take i nto account theafter i ncome tax effect of i nterest and other fi nanci ng costs associ ated wi th di luti ve potenti al ordi nary shares and the wei ghtedaverage number of shares assumed to have been i ssued for no consi derati on i n relati on to di luti ve potenti al ordi nary share
213、s.1.20OPERATING SEGMENTSOperati ng segments are presented usi ng the management approach,where the i nformati on presented i s on the same basi sas the i nternal reports provi ded to the Chi ef Operati ng Deci si on Makers(CODM).The CODM i s responsi ble for the allocati onof resources to operati ng
214、 segments and assessi ng thei r performance.NEW,REVISED OR AMENDING ACCOUNTING STANDARDS AND INTERPRETATIONS ADOPTEDThe consoli dated enti ty has not elected to adopt any accounti ng standards or amendments to standards or i nterpretati onsi ssued pri or to the date of thi s report where appli cati
215、on i s not mandatory for the year ended 30 June 2018.NEW ACCOUNTING STANDARDS AND INTERPRETATIONS NOT YET MANDATORY OR EARLY ADOPTEDAustrali an Accounti ng Standards and Interpretati ons that have recently been i ssued or amended but are not yet mandatory,have not been early adopted by the consoli d
216、ated enti ty for the annual reporti ng peri od ended 30 June 2018.The consoli datedenti tys assessment of the i mpact of these new or amended Accounti ng Standards and Interpretati ons,most relevant to theconsoli dated enti ty,are set out below.medlab.coINNOVATION-QUALITY-LIFE SCIENCES 32 NOTES TO T
217、HE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2018SIGNIFICANT ACCOUNTING POLICIES(CONTINUED)AASB 9 Financial InstrumentsThi s standard i s appli cable to annual reporti ng peri ods begi nni ng on or after 1 January 2018.The standard replaces all previ ousversi ons of AASB 9 and completes the pro
218、ject to replace IAS 39 Fi nanci al Instruments:Recogni ti on and Measurement.AASB9 i ntroduces new classi fi cati on and measurement models for fi nanci al assets.A fi nanci al asset shall be measured at amorti sedcost,i f i t i s held wi thi n a busi ness model whose objecti ve i s to hold assets i
219、 n order to collect contractual cash flows,whi chari se on speci fi ed dates and solely pri nci pal and i nterest.All other fi nanci al i nstrument assets are to be classi fi ed and measuredat fai r value through profi t or loss unless the enti ty makes an i rrevocable electi on on i ni ti al recogn
220、i ti on to present gai ns andlosses on equi ty i nstruments(that are not held-for-tradi ng)i n other comprehensi ve i ncome(OCI).For fi nanci al li abi li ti es,thestandard requi res the porti on of the change i n fai r value that relates to the enti tys own credi t ri sk to be presented i n OCI(unl
221、essi t would create an accounti ng mi smatch).New si mpler hedge accounti ng requi rements are i ntended to more closely ali gn theaccounti ng treatment wi th the ri sk management acti vi ti es of the enti ty.New i mpai rment requi rements wi ll use an expectedcredi t loss(ECL)model to recogni se an
222、 allowance.Impai rment wi ll be measured under a 12-month ECL method unless thecredi t ri sk on a fi nanci al i nstrument has i ncreased si gni fi cantly si nce i ni ti al recogni ti on i n whi ch case the li feti me ECL methodi s adopted.The standard i ntroduces addi ti onal new di sclosures.The co
223、nsoli dated enti ty wi ll adopt thi s standard from 1 July2018 and does not expect a materi al i mpact on the fi nanci al statements as the enti ty does not have any fi nanci al i nstrumentsthat quali fy for hedge accounti ng.The i mpact of adopti ng thi s standard wi ll i ncrease the provi si on fo
224、r doubtful debts balancefor i ts trade recei vables as i t wi ll now recogni se li feti me expected credi t losses from the fi rst reporti ng peri od.Based on theconsoli dated enti tys hi stori c loss rates,i t does not expect a materi al i mpact on the statements.AASB 15 Revenue from Contracts with
225、 CustomersThi s standard i s appli cable to annual reporti ng peri ods begi nni ng on or after 1 January 2018.AASB 15 i ntroduces a fi ve stepprocess for revenue recogni ti on wi th the core pri nci ple of the new Standard bei ng for enti ti es to recogni se revenue to depi ctthe transfer of goods o
226、r servi ces to customers i n amounts that reflect the consi derati on(that i s,payment)to whi ch the enti tyexpects to be enti tled i n exchange for those goods or servi ces.Accounti ng poli cy changes wi ll ari se i n ti mi ng of revenuerecogni ti on,treatment of contracts costs and contracts whi c
227、h contai n a fi nanci ng element.AASB 15 wi ll also result i n enhanceddi sclosures about revenue,provi de gui dance for transacti ons that were not previ ously addressed comprehensi vely(for example,servi ce revenue and contract modi fi cati ons)and i mprove gui dance for multi ple-element arrangem
228、ents.The consoli datedenti ty wi ll adopt thi s standard from 1 July 2018 but at thi s poi nt i n ti me there wi ll be no i mpact to the revenue of the Consoli datedGroup because the revenue i s not deri ved from contracts wi th customers but from the sale of goods.AASB 16 LeasesThi s standard i s a
229、ppli cable to annual reporti ng peri ods begi nni ng on or after 1 January 2019.The standard replaces AASB 117Leases and for lessees wi ll eli mi nate the classi fi cati ons of operati ng leases and fi nance leases.Subject to excepti ons,a ri ght-of-use asset wi ll be capi tali sed i n the statement
230、 of fi nanci al posi ti on,measured at the present value of the unavoi dable futurelease payments to be made over the lease term.The excepti ons relate to short-term leases of 12 months or less and leases oflow-value assets(such as personal computers and small offi ce furni ture)where an accounti ng
231、 poli cy choi ce exi sts wherebyei ther a ri ght-of-use asset i s recogni sed or lease payments are expensed to profi t or loss as i ncurred.A li abi li ty correspondi ngto the capi tali sed lease wi ll also be recogni sed,adjusted for lease prepayments,lease i ncenti ves recei ved,i ni ti al di rec
232、t costsi ncurred and an esti mate of any future restorati on,removal or di smantli ng costs.Strai ght-li ne operati ng lease expenserecogni ti on wi ll be replaced wi th a depreci ati on charge for the leased asset(i ncluded i n operati ng costs)and an i nterest expenseon the recogni sed lease li ab
233、i li ty(i ncluded i n fi nance costs).In the earli er peri ods of the lease,the expenses associ ated wi th thelease under AASB 16 wi ll be hi gher when compared to lease expenses under AASB 117.However,EBITDA(Earni ngs BeforeInterest,Tax,Depreci ati on and Amorti sati on)results wi ll be i mproved a
234、s the operati ng expense i s replaced by i nterest expenseand depreci ati on i n profi t or loss under AASB 16.For classi fi cati on wi thi n the statement of cash flows,the lease payments wi llbe separated i nto both a pri nci pal(fi nanci ng acti vi ti es)and i nterest(ei ther operati ng or fi nan
235、ci ng acti vi ti es)component.Forlessor accounti ng,the standard does not substanti ally change how a lessor accounts for leases.The consoli dated enti ty wi lladopt thi s standard from 1 July 2019.If adopted at year end,i t would have the effect of recogni si ng a ri ght-of-use asset ofapproxi mate
236、ly$568,096 and lease li abi li ty of approxi mately$525,596 wi th respect to premi se lease the Consoli dated enti tyhas entered i nto.The assessment of the accounti ng,di sclosure and fi nanci al i mpact on adopti on of the standard wi ll conti nueup to the date of appli cati onmedlab.coINNOVATION-
237、QUALITY-LIFE SCIENCES 33 NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2018SIGNIFICANT ACCOUNTING POLICIES(CONTINUED)CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTYThe preparati on of the fi nanci al statements requi res management to make judgements,esti mates
238、 and assumpti ons that affectthe reported amounts i n the fi nanci al statements.Management conti nually evaluates i ts judgements and esti mates i n relati onto assets,li abi li ti es,conti ngent li abi li ti es,revenue and expenses.Management bases i ts judgements,esti mates and assumpti onson hi
239、stori cal experi ence and on other vari ous factors,i ncludi ng expectati ons of future events,management beli eves to bereasonable under the ci rcumstances.The resulti ng accounti ng judgements and esti mates wi ll seldom equal the related actualresults.The judgements,esti mates and assumpti ons th
240、at have a si gni fi cant ri sk of causi ng a materi al adjustment to the carryi ngamounts of assets and li abi li ti es(refer to the respecti ve notes)wi thi n the next fi nanci al year are di scussed below.Provision for impairment of receivablesThe provi si on for i mpai rment of recei vables asses
241、sment requi res a degree of esti mati on and judgement.The level of provi si oni s assessed by taki ng i nto account the recent sales experi ence,the agei ng of recei vables,hi stori cal collecti on rates and speci fi cknowledge of the i ndi vi dual debtors fi nanci al posi ti on.Estimation of usefu
242、l lives of assetsThe consoli dated enti ty determi nes the esti mated useful li ves and related depreci ati on and amorti sati on charges for i ts property,plant and equi pment and fi ni te li fe i ntangi ble assets.The useful li ves could change si gni fi cantly as a result of techni cali nnovati o
243、ns or some other event.The depreci ati on and amorti sati on charge wi ll i ncrease where the useful li ves are less thanprevi ously esti mated li ves,or techni cally obsolete or non-strategi c assets that have been abandoned or sold wi ll be wri tten offor wri tten down.Provision for impairment of
244、inventoriesThe provi si on for i mpai rment of i nventori es assessment requi res a degree of esti mati on and judgement.The level of theprovi si on i s assessed by taki ng i nto account the recent sales experi ence,the agei ng of i nventori es and other factors that affecti nventory obsolescence.Em
245、ployee benefits provisionAs di scussed i n Note 1,the li abi li ty for employee benefi ts expected to be settled more than 12 months from the reporti ng dateare recogni sed and measured at the present value of the esti mated future cash flows to be made i n respect of all employeesat the reporti ng
246、date.In determi ni ng the present value of the li abi li ty,esti mates of attri ti on rates and pay i ncreases throughpromoti on and i nflati on have been taken i nto account.Lease make good provisionA provi si on has been made for the present value of anti ci pated costs for future restorati on of
247、leased premi ses.The provi si oni ncludes future cost esti mates associ ated wi th closure of the premi ses.The calculati on of thi s provi si on requi res assumpti onssuch as appli cati on of closure dates and cost esti mates.The provi si on recogni sed for each si te i s peri odi cally revi ewed a
248、ndupdated based on the facts and ci rcumstances avai lable at the ti me.Changes to the esti mated future costs for si tes arerecogni sed i n the statement of fi nanci al posi ti on by adjusti ng the asset and the provi si on.Reducti ons i n the provi si on thatexceed the carryi ng amount of the asse
249、t wi ll be recogni sed i n profi t or loss.medlab.coINNOVATION-QUALITY-LIFE SCIENCES 34 NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2018NOTE 2 PARENT INFORMATIONThe followi ng i nformati on has been extracted from the books and records of the parent and has been prepared i n accordan
250、cewi th Australi an Accounti ng Standards.Contingent liabilitiesThe parent enti ty had no conti ngent li abi li ti es as at 30 June 2018.Significant accounting policiesThe accounti ng poli ci es of the parent enti ty are consi stent wi th those of the consoli dated enti ty,as di sclosed i n Note 1.S
251、TATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOMELoss after taxs(146,294)(320,212)Total comprehensive loss(146,294)(320,212)2017$2018$STATEMENT OF FINANCIAL POSITIONASSETSCurrent assetsNon-current assets-Investments in subsidiaries-Loans to subsidiaries-Property,plant and equipmentTOTAL ASS
252、ETSLIABILITIESCurrent liabilitiesTOTAL LIABILITIESEQUITYIssued capitalRetained earningsTOTAL EQUITY2017$2018$21,091,6712,252,37417,046,67011,62140,402,336339,199339,19939,163,421899,71640,063,1372,308,3932,252,37412,229,544-16,790,311145,881145,88115,598,4201,046,01016,644,430medlab.coINNOVATION-QUA
253、LITY-LIFE SCIENCES 35 NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2018NOTE 3 REVENUENOTE 4 OTHER EXPENSESNOTE 5 INCOME TAX EXPENSESThe economi c enti ty has separate tax enti ti es wi thi n Australi a,the UK and the Uni ted States.All tax juri sdi cti ons have tax losses,whi ch are n
254、ot recogni sed i n thei r books at 30 June 2018.The unused tax losses held i n the Australi an group compani es as at30 June 2018 are$8,236,091,$1,884,501(USD)was held i n the US compani es and a further$5,922(GBP)was held i n the UKcompany.The tax losses are avai lable for offset agai nst future ta
255、xable profi ts of the compani es i n whi ch losses arose wi thi neach tax juri sdi cti on subject to certai n condi ti ons bei ng met.The Di rectors have not brought to account a deferred tax asset to recogni se the potenti al tax benefi t of these tax losses asany benefi t wi ll only be obtai ned i
256、 f:The economi c enti ty meets the condi ti ons for deducti bi li ty i mposed by tax legi slati on i n relati on to the same busi ness test and conti nui ty of ownershi p laws;The economi c enti ty deri ves future assessable i ncome of a nature and of an amount suffi ci ent to enable the benefi t fr
257、om deducti ons for the losses to be reali sed;andNo changes i n tax legi slati on occur i n future years that would adversely affect the economi c enti ty i n reali si ng the benefi t from the deducti ons for the losses(i n the event they quali fy to be uti li sed by the economi c enti ty).Sales rev
258、enue:-Sale of goods-Rendering of R&D services&consultationOther revenue:-Interest received-R&D tax incentiveTotal revenue2017$2018$4,133,6125,8434,139,455163,9411,243,0001,406,9415,546,3963,272,92618,0003,290,92650,282 1,105,3251,155,6074,446,533Other expenses includes the following specific expense
259、s:Lab Consumables 69,512 92,656Telephone and internet 86,434 101,565Travel 268,371 175,6362017$2018$2017$2018$(1,308,505)801,60017,857-(15,613)(341,825)846,486-(1,055,500)600,57515,84542(13,118)(261,250)713,406-The prima facie tax on the(loss)from ordinary activities before income tax is reconciled
260、to the income tax as follows:Prima facie tax payable on(loss)from ordinary activities before income tax at 27.5%Add tax effect of:-non-deductible R&D expense-entertainment-other non-deductible expensesLess:tax effect of:-Tax effect of different company tax rate in USA(35%)-R&D incentive receivableFu
261、ture income tax benefit not recognisedmedlab.coINNOVATION-QUALITY-LIFE SCIENCES 36 NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2018NOTE 6 CASH AND CASH EQUIVALENTSNOTE 7 TRADE AND OTHER RECEIVABLESPast due but not impairedCustomers wi th balances past due but wi thout provi si on for
262、 i mpai rment of recei vables amount to$218,761.The consoli dated enti ty di d not consi der a credi t ri sk on the aggregate balances after revi ewi ng the credi t terms of customersbased on recent collecti on practi ces.The agei ng of the past due but not i mpai red recei vables are as follows2017
263、$2018$791,796(25,000)766,7961,289,0762,055,872765,637(20,983)744,654956,1361,700,790CurrentTrade receivablesLess:Provision for impairment of receivablesOther receivablesTotal current receivables2017$2018$2,332,69418,000,00020,332,694(4,758,201)(28,359)112,355(355,082)(33,423)10,000(402,976)84,308596
264、,012(4,775,366)1,497,600-1,497,600(3,838,180)(16,842)110,408(581,198)(148,322)42,983(82,502)44,059206,717(4,262,877)Cash at bank and on handCash on depositTotal cash and cash equivalentsReconciliation of cash flow from operations with loss from ordinaryactivities after income taxLoss after income ta
265、xNon-cash flows in profitForeign exchange gains and lossesDepreciation and amortisationChanges in assets and liabilities-(Increase)/decrease in receivables-(Increase)/decrease in prepayments-Increase/(decrease)in provisions-(Increase)/decrease in inventories-Increase/(decrease)in employee benefits-I
266、ncrease/(decrease)payablesCash flows from operations2017$2018$1 to 2 months overdue3 to 6 months overdueOver 6 months overdue130,45688,305-218,76178,94558,937-137,882medlab.coINNOVATION-QUALITY-LIFE SCIENCESNOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2018NOTE 7 TRADE AND OTHER RECEIV
267、ABLES(CONTINUED)Impairment of receivablesThe consoli dated enti ty has recogni sed a loss of$25,000(2017:20,983)i n profi t or loss i n respect of i mpai rment of recei vablesfor the year ended 30 June 2018.The agei ng of the past due but not i mpai red recei vables are as follows:Movements i n the
268、provi si on for i mpai rment of recei vables as follows:NOTE 8 INVENTORIESNOTE 9 OTHER ASSETS2017$2018$1 to 2 months overdue3 to 6 months overdueOver 6 months overdue-25,000-25,000-20,983-20,9832017$2018$20,9835,559(1,542)25,000-28,015(7,032)20,983Opening balanceAdditional provisions recognisedRecei
269、vables written off during the year as uncollectableCurrentPrepaymentsTotal current other assetsNon CurrentRental bondTotal non current other assets2017$2018$262,145262,14574,45274,452228,722228,72256,41156,4112017$2018$319,947879,0881,199,035(35,000)1,164,035206,442579,617786,059(25,000)761,059Curre
270、ntRaw materialsFinished goodsLess:Provision for obsolescenceTotal inventoriesmedlab.coINNOVATION-QUALITY-LIFE SCIENCESNOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2018NOTE 10 PROPERTY,PLANT AND EQUIPMENT(a)Movements in carrying amountsMovement i n the carryi ng amounts for each class
271、of property,plant and equi pment between the begi nni ng and the end of thecurrent fi nanci al year:NOTE 11 TRADE AND OTHER PAYABLESPlant and equipment costLess accumulated depreciationLeasehold improvements-costLess accumulated amortisationOffice furniture&equipment costLess accumulated depreciatio
272、nTotal property,plant and equipment2017$2018$542,892(249,051)293,841158,951(80,195)78,756304,185(239,008)65,177437,774514,919(195,476)319,443130,364(63,706)66,658262,301(195,430)66,871452,972Consolidated Group:Balance at 1 July 2016AdditionsDisposalsDepreciation expenseAmortisation expenseForeign cu
273、rrency translationCarrying amount at 30 June 2017Plant&Equipment$Total$LeaseholdImprovements$Office Furniture&Equipment$322,94249,959-(53,468)-10319,443495,90266,727-(92,373)(18,035)751452,97278,2716,422-(18,035)-66,65894,68910,346-(38,905)-74166,871Consolidated Group:Balance at 1 July 2017Additions
274、DisposalsDepreciation expenseAmortisation expenseForeign currency translationCarrying amount at 30 June 2018Plant&Equipment$Total$LeaseholdImprovements$Office Furniture&Equipment$319,44327,923-(53,557)-32293,841452,97296,477-(95,866)(16,489)680437,77466,65828,587-(16,489)-78,75666,87139,967-(42,309)
275、-64865,177CurrentUnsecured liabilities:Trade payablesSundry payables and accrued expenses2017$2018$990,929597,5891,588,518603,726458,7131,062,439medlab.coINNOVATION-QUALITY-LIFE SCIENCES 39 NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2018NOTE 12 EMPLOYEE BENEFITSThe provi si on for e
276、mployee benefi ts i ncludes all uncondi ti onal enti tlements where employees have completed the requi redperi od of servi ce and also those where employees are enti tled to pro-rata payments i n certai n ci rcumstances.NOTE 13 BORROWINGS(a)A debtor fi nance faci li ty was establi shed wi th Scotti
277、sh Paci fi c Busi ness Fi nance.The faci li ty i s over a 24-month term wi th a di scount charge of 8.04%.(b)An i nsurance premi um fundi ng faci li ty was establi shed wi th Hunter Premi um.The faci li ty i s over a 12-month term wi th an i nterest rate of 7.56%(c)Mr Sean Hall had advanced funds to
278、 the Company.The loan was to be repai d by 31 December 2018 and wi ll i ncur i nterest at 3%pa.Mr Sean Hall has also provi ded a fi nance faci li ty to the Company of$1.5m at an i nterest rate of 1.25%above the 30-90 bank bi ll rate.The loan was repai d by 30 June 2018 and the fi nance faci li ty wa
279、s never drawn from.CurrentDebtor finance facility(a)Insurance funding facility(b)Total current borrowingsNon Current Loan from director(c)Total non-current borrowings2017$2018$464,59735,106499,703-32,26732,267264,454264,4542017Insurance funding facility Loan from director2018Debtor finance facility
280、Insurance funding facility Loan from directorOpeningBalance$19,528253,048272,576-32,267264,454296,721ClosingBalance$32,267264,454296,721464,59735,106-499,703CashOutflow$(59,401)-(59,401)(1,870,514)(152,050)(264,454)(2,287,018)CashInflow$72,140-72,1402,335,111154,889-2,490,000Reconciliation of borrow
281、ings balance arising from financing activitiesNon-Cash$-11,40611,406-CurrentProvision for annual leave Non CurrentProvision for long service leave2017$2018$261,570261,57061,11861,118194,321194,32144,05944,059medlab.coINNOVATION-QUALITY-LIFE SCIENCES 40 NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR E
282、NDED 30 JUNE 2018NOTE 14 PROVISIONS Lease make goodThe provi si on represents the present value of the esti mated costs to make good the premi ses leased by the consoli dated enti tyat the end of the respecti ve lease terms.Movements in provisionsMovements i n each class of provi si on duri ng the c
283、urrent fi nanci al year,other than employee benefi ts,are set out below:NOTE 15 OTHER LIABILITIESNOTE 16 ISSUED CAPITALMovements in ordinary share capitalOrdi nary shares enti tle the holder to parti ci pate i n di vi dends and the proceeds on wi ndi ng up of the parent enti ty i n proporti onto the
284、 number of shares held.At shareholders meeti ngs each ordi nary share i s enti tled to one vote when a poll i s called,otherwi se each shareholder hasone vote on a show of hands.Non-CurrentProvision for lease make-goodTotal non-current provisions2017$2018$57,50057,50047,50047,500Lease Make Good$Carr
285、ying amount at the start of the yearAdditional provisions recognisedCarrying amount at the end of the year47,50010,00057,500CurrentDeferred lease liability2017$2018$-2,0252,025Ordinary shares fully paid2017$2017Number15,598,42015,598,420178,705,000178,705,0002018Number208,021,667208,021,6672018$39,1
286、63,42039,163,420Total$IssuePrice$No.ofSharesDateDetailsBalanceExercise of optionsIssue of shares-PlacementShare issue costs,net of taxBalance30 June 201716 November 20171 February 201830 June 201815,598,420795,00024,000,000(1,230,000)39,163,4200.300.90178,705,0002,650,00026,666,667208,021,667medlab.
287、coINNOVATION-QUALITY-LIFE SCIENCES 41 NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2018NOTE 16 ISSUED CAPITAL(CONTINUED)Capital risk managementThe consoli dated enti tys objecti ves when managi ng capi tal i s to safeguard i ts abi li ty to conti nue as a goi ng concern,so thati t can
288、 provi de returns for shareholders and benefi ts for other stakeholders and to mai ntai n an opti mum capi tal structure toreduce the cost of capi tal.In order to mai ntai n or adjust the capi tal structure,the consoli dated enti ty may adjust the amount of di vi dends pai d toshareholders,return ca
289、pi tal to shareholders,i ssue new shares or sell assets to reduce debt.The consoli dated enti ty would look to rai se capi tal when an opportuni ty to i nvest i n a busi ness or company was seen as valueaddi ng relati ve to the current companys share pri ce at the ti me of the i nvestment.The consol
290、i dated enti ty i s not acti velypursui ng addi ti onal i nvestments i n the short term as i t conti nues to i ntegrate and grow i ts exi sti ng busi nesses i n order tomaxi mi se synergi es.The consoli dated enti ty would also look to rai se capi tal i f there i s a need for addi ti onal funds for
291、strategi c(whether nutraceuti cal or R&D)or worki ng capi tal requi rements.NOTE 17 RESERVESForei gn Currency Translati on Reserve:The forei gn currency translati on reserve records exchange di fferences ari si ng ontranslati on of overseas controlled subsi di ari es i n the Uni ted States and Uni t
292、ed Ki ngdom.Movements in reservesMovements i n each class of reserve duri ng the current and previ ous fi nanci al year are set out below:ReservesForeign currency translation reserve 68,804 68,040 68,804 68,0402017$2018$ConsolidatedBalance at 30 June 2016 62,043Foreign currency translation 5,997Bala
293、nce at 30 June 2017 68,040Foreign currency translation 764Balance at 30 June 2018 68,804ForeignCurrencymedlab.coINNOVATION-QUALITY-LIFE SCIENCES 42 NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2018NOTE 18 SHARE-BASED PAYMENTSNo share opti ons were granted duri ng the fi nanci al year.
294、Set out below i s the summary of the opti ons:An employee share opti on plan has been establi shed by the consoli dated enti ty and approved by shareholders at a generalmeeti ng,whereby the consoli dated enti ty may,at the di screti on of the board of Di rectors,grant opti ons over ordi nary sharesi
295、 n the company to certai n staff of the consoli dated enti ty.The opti ons are i ssued for ni l consi derati on and are granted i naccordance wi th performance gui deli nes establi shed by the Nomi nati on and Remunerati on Commi ttee.No opti ons havebeen i ssued under thi s employee share opti on p
296、lan as of the date of thi s fi nanci al report.NOTE 19 EVENTS SUBSEQUENT TO BALANCE DATENo matters or ci rcumstances have ari sen si nce 30 June 2018 whi ch si gni fi cantly affected or may si gni fi cantly affect theoperati ons of the consoli dated group,the results of those operati ons,or the stat
297、e of affai rs of the consoli dated group i n futurefi nanci al years.NOTE 20 COMMITMENTSOperati ng lease commi tments i ncludes contracted amounts for busi ness premi ses and equi pment leases under non-cancellable operati ng leases expi ri ng wi thi n one to 5 years wi th,i n some cases,opti ons to
298、 extend.The leases have vari ousescalati on clauses.On renewal,the terms of the leases are renegoti ated.NOTE 21 AUDITORS REMUNERATIONDuri ng the fi nanci al year the followi ng fees were pai d or payable for servi ces provi ded by ESV Accounti ng and Busi ness Advi sors,the audi tor of the company,
299、i ts network fi rms and unrelated fi rms:2018Grant DateExpiry DateGrant PriceExercise PriceBalance at end of yearForfeited/Expired/OtherExercisedGrantedBalance at start of year17/04/201410/07/20152/11/201530/06/201930/6/202030/06/2019NilNilNil$0.30$0.30$0.307,350,0001,541,7251,000,0009,891,725-2,650
300、,000-2,650,000-10,000,0001,541,7251,000,00012,541,7252017Grant DateExpiry DateGrant PriceExercise PriceBalance at end of yearForfeited/Expired/OtherExercisedGrantedBalance at start of year17/04/201410/07/20152/11/201530/06/201930/6/202030/06/2019NilNilNil$0.30$0.30$0.3010,000,0001,541,7251,000,00012
301、,541,725-10,000,0001,541,7251,000,00012,541,725Payable:-not later than 12 months 323,182 239,438-between 12 months and five years 581,671 180,896Total operating lease commitments 904,853 420,3342017$2018$Operating Lease Commitments-audit and review of financial report 45,016 43,6522017$2018$medlab.c
302、oINNOVATION-QUALITY-LIFE SCIENCES 43 NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2018NOTE 22 CONTINGENT LIABILITIESThe Company has gi ven bank guarantees as at 30 June 2018 of$74,452 towards the rental bond.NOTE 23 INTERESTS IN SUBSIDIARIESNOTE 24 FINANCIAL INSTRUMENTSFinancial risk
303、management objectivesThe consoli dated enti tys acti vi ti es expose i t to a vari ety of fi nanci al ri sks:market ri sk(i ncludi ng forei gn currency ri sk),credi tri sk and li qui di ty ri sk.The consoli dated enti tys overall ri sk management program focuses on the unpredi ctabi li ty of fi nanc
304、i almarkets and seeks to mi ni mi se potenti al adverse effects on the fi nanci al performance of the consoli dated enti ty.Theconsoli dated enti ty uses di fferent methods to measure di fferent types of ri sk to whi ch i t i s exposed.These methods i ncludesensi ti vi ty analysi s i n the case of f
305、orei gn exchange and other pri ce ri sks,agei ng analysi s for credi t ri sk.Ri sk management i s carri ed out by the CFO(fi nance)under poli ci es approved by the Board of Di rectors(the Board).Thesepoli ci es i nclude i denti fi cati on and analysi s of the ri sk exposure of the consoli dated enti
306、 ty and appropri ate procedures,controlsand ri sk li mi ts.Fi nance i denti fi es,evaluates and hedges fi nanci al ri sks wi thi n the consoli dated enti tys operati ng uni ts.Fi nancereports to the Board on a monthly basi s.Market riskForei gn currency ri skThe consoli dated enti ty undertakes cert
307、ai n transacti ons denomi nated i n forei gn currency and i s exposed to forei gn currencyri sk through forei gn exchange rate fluctuati ons.Forei gn exchange ri sk ari ses from future commerci al transacti ons,net assets of subsi di ari es and recogni sed fi nanci al assetsand fi nanci al li abi li
308、 ti es denomi nated i n a currency that i s not the enti tys functi onal currency.The ri sk i s measured usi ngsensi ti vi ty analysi s and cash flow forecasti ng.In order to protect agai nst exchange rate movement,the consoli dated enti ty has entered i nto forward forei gn exchangecontracts.These
309、contracts are hedgi ng hi ghly probable forecasted cash flows for the ensui ng fi nanci al year.Managementhas a ri sk poli cy to hedge around 50%of anti ci pated forei gn currency transacti ons for the subsequent 6 to 12 months.The maturi ty,settlement amounts and the average contractual exchange ra
310、tes of the consoli dated enti tys outstandi ng forwardforei gn exchange contracts at the reporti ng date were as follows:Medlab Pty LtdMedlab Clinical US IncMedlab IP Pty LtdMedlab Research Pty LtdMedlab Nutraceuticals IncMedlab Research LtdOwnershipInterest2017100%60%100%100%60%100%NameOwnershipInt
311、erest2018Principal Place of Business/Country of Incorporation100%60%100%100%60%100%AustraliaUnited States of AmericaAustraliaAustraliaUnited States of AmericaUnited KingdomAverageexchange rates2017Buy US dollars Maturity:3-6 months0.7353-Averageexchange rates2018Sell Australiandollars2017Sell Austra
312、liandollars2018311,724-medlab.coINNOVATION-QUALITY-LIFE SCIENCES 44 NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2018NOTE 24 FINANCIAL INSTRUMENTS(CONTINUED)Credit riskCredi t ri sk refers to the ri sk that a counterparty wi ll default on i ts contractual obli gati ons resulti ng i n
313、fi nanci al loss to theconsoli dated enti ty.The consoli dated enti ty has a stri ct code of credi t,i ncludi ng obtai ni ng agency credi t i nformati on,confi rmi ng references and setti ng appropri ate credi t li mi ts.The consoli dated enti ty obtai ns guarantees where appropri ate tomi ti gate c
314、redi t ri sk.The maxi mum exposure to credi t ri sk at the reporti ng date to recogni sed fi nanci al assets i s the carryi ngamount,net of any provi si ons for i mpai rment of those assets,as di sclosed i n the statement of fi nanci al posi ti on and notes tothe fi nanci al statements.The consoli d
315、ated enti ty does not hold any collateral.Liquidity riskVi gi lant li qui di ty ri sk management requi res the consoli dated enti ty to mai ntai n suffi ci ent li qui d assets(mai nly cash and cashequi valents)to be able to pay debts as and when they become due and payable.The consoli dated enti ty
316、manages li qui di ty ri sk by mai ntai ni ng adequate cash reserves and avai lable i nvoi ce faci li ty byconti nuously moni tori ng actual and forecast cash flows and matchi ng the maturi ty profi les of fi nanci al assets and li abi li ti es.Remaining contractual maturitiesThe followi ng tables de
317、tai l the consoli dated enti tys remai ni ng contractual maturi ty for i ts fi nanci al i nstrument li abi li ti es.Thetables have been drawn up based on the undi scounted cash flows of fi nanci al li abi li ti es based on the earli est date on whi chthe fi nanci al li abi li ti es are requi red to
318、be pai d.The tables i nclude both i nterest and pri nci pal cash flows di sclosed as remai ni ngcontractual maturi ti es and therefore these totals may di ffer from thei r carryi ng amount i n the statement of fi nanci al posi ti on.The cash flows i n the maturi ty analysi s above are not expected t
319、o occur si gni fi cantly earli er than contractually di sclosed above.Fair value of financial instrumentsUnless otherwi se stated,the carryi ng amounts of fi nanci al i nstruments reflect thei r fai r value.Non-derivativesNon-interest bearingTrade payablesOther payablesInterest-bearing-fixed rateDir
320、ector LoansBorrowingsTotal non-derivativesBetween 1 and 2 years-Remaining contractual maturities990,929597,589-499,7032,088,221Over 5 years-1 year or less990,929597,589-499,7032,088,221Weighted average interest rate%-%-%3.00%8.04%Between 2 and 5 years-Consolidated-2018Non-derivativesNon-interest bea
321、ringTrade payablesOther payablesInterest-bearing-fixed rateDirector LoansBorrowingsTotal non-derivativesBetween 1 and 2 years-264,454-264,454Remaining contractual maturities603,726458,713264,45432,2671,359,160Over 5 years-1 year or less603,726458,713-32,2671,094,706Weighted average interest rate%-%-
322、%3.00%6.70%Between 2 and 5 years-Consolidated-2017medlab.coINNOVATION-QUALITY-LIFE SCIENCES 45 NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2018NOTE 25 ACCUMULATED LOSSESNOTE 26 KEY MANAGEMENT PERSONNEL DISCLOSURESCompensationThe aggregate compensati on made to di rectors and other me
323、mbers of key management personnel of the consoli dated enti tyi s set out below:NOTE 27 RELATED PARTY TRANSACTIONSParent entityMedlab Cli ni cal Li mi ted i s the parent enti ty.SubsidiariesInterests i n subsi di ari es are set out i n note 23.Key management personnelDi sclosures relati ng to key ma
324、nagement personnel are set out i n note 26 and the remunerati on report i n the di rectors report.Transactions with related partiesThe followi ng transacti ons occurred wi th related parti es:Accumulated losses at the beginning of the year 12,587,714 8,749,534Loss for the year 4,758,201 3,838,180Acc
325、umulated losses at the end of the year 17,345,915 12,587,7142017$2018$Short-term employee benefits 1,086,569 1,064,927Post-employment benefits 88,211 86,273 1,174,780 1,151,2002017$2018$2017$2018$23,400112,520-268,40117,000-264,454-Payment for goods and services:Payment for taxation services from Ha
326、ll Chadwick(director-related entity of Drew Townsend)Payment for employee benefits(related party to Sean Hall)Receivable from and payable to related partiesThe following balances are outstanding at the reporting date in relationto transactions with related parties:Trade payable to Hall Chadwick(dire
327、ctor-related entity of Drew Townsend)Loans to/from related parties:Loans from Sean HallLoan repayment to Sean Hallmedlab.coINNOVATION-QUALITY-LIFE SCIENCES 46 NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2018NOTE 28 EARNINGS PER SHARE2017$2018$4,758,201(187,806)4,570,395Number191,266,
328、0815,590,975196,857,056Cents(2.39)(2.32)3,838,180(180,536)3,657,644Number176,140,1218,141,120184,281,241Cents(2.08)(1.98)Loss for the yearNon-controlling interestLoss attributable to the owners of Medlab Clinical LimitedWeighted average number of ordinary shares used in calculating basic earnings pe
329、r shareAdjustments for calculation of diluted earnings per share:-Options over ordinary sharesWeighted average number of ordinary shares used in calculating diluted earnings per shareBasic earnings per shareDiluted earnings per sharemedlab.coINNOVATION-QUALITY-LIFE SCIENCES 47 NOTES TO THE FINANCIAL
330、 STATEMENTSFOR THE YEAR ENDED 30 JUNE 2018NOTE 29 SEGMENT REPORTINGIdentification of reportable operating segmentsThe consoli dated enti ty i s organi sed i nto two operati ng segments based on pharmaceuti cal research and nutraceuti cal sales.These operati ng segments are based on the i nternal rep
331、orts that are revi ewed and used by the Board of Di rectors(who arei denti fi ed as the Chi ef Operati ng Deci si on Makers(CODM)i n assessi ng performance and i n determi ni ng the allocati on ofresources.There i s no aggregati on of operati ng segments.The CODM revi ews EBITDA(earni ngs before i n
332、terest,tax,depreci ati on and amorti sati on).The accounti ng poli ci es adopted fori nternal reporti ng to the CODM are consi stent wi th those adopted i n the fi nanci al statements.The i nformati on reported to the CODM i s on a monthly basi s.Operating segment informationRevenueSales to external
333、 customersIntersegment salesTotal sales revenue Other revenueTotal segment revenueIntersegment eliminationsTotal revenueEBITDAAssetsSegment assetsIntersegment eliminationsTotal assetsLiabilitiesSegment liabilitiesIntersegment eliminationsTotal liabilities4,133,612-4,133,6121,412,7845,546,396-5,546,396(4,754,831)24,326,972-24,326,9722,468,409-2,468,409-163,941163,941(441,123)20,430,468491,655Total$
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