CAP-XX Limited Audited results for the year ended 30 June 2017 (9990S)

TIDMCPX

RNS Number : 9990S

CAP-XX Limited

09 October 2017

Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR).

9 October 2017

CAP-XX Limited

("CAP-XX" the "Company")

Audited results for the year ended 30 June 2017

CAP-XX Limited, a world leader in the design and manufacture of thin, flat supercapacitors and energy management systems, is pleased to announce its audited results for the year ended 30 June 2017.

Key highlights

-- Sales revenue of A$4.1 million (2016: A$5.0 million) and EBITDA loss of A$1.2 million (2016: A$0.7 million) in line with guidance announced on 7 June 2017

-- Royalty revenue of A$0.7 million (2016: A$0.2 million) up 177%. Q4 Murata royalty up over 50% on prior quarter, following major new product launches during the year. Introduction of additional product ranges by AVX during the year

-- Operating expenses reduced by A$0.5 million year-on-year, with R&D and engineering spending maintained and additional R&D and Engineering staff added

-- The Board believes that the Company's IP and patent portfolio is in its strongest position ever

-- New licensing deals are under negotiation and the Board expects at least some of these to successfully close in the current financial year and remains confident that CAP-XX will continue to drive further increases in royalty receipts

-- Sales enquiries for prismatic supercapacitors, including Thinline, are at record levels. The first large volume design win for our Thinline product range, in a wearable application for the Internet of Things (IoT) market segment, was announced in August 2017

-- Several additional large IoT design wins have already been secured and high-volume orders are expected in the current financial year

-- Three large automotive opportunities are under development, including applications for passenger vehicles and heavy vehicles

   --     Three new custom designed automotive systems delivered to customers for evaluation 

-- In negotiations with potential manufacturing partners to secure the necessary production capacity to fulfill these automotive opportunities

-- A full range of CAP-XX cylindrical cell supercapacitors was launched in the year. Market interest is high, with potential customers currently evaluating CAP-XX products for large volume applications

-- The Company raised GBP2.43 million in January 2017. Cash reserves at the end of June 2017 were A$3.9 million (2016: A$0.3 million) with an additional A$1.5 million Australian R&D tax rebate (2016: A$1.5 million) anticipated to be received during October 2017

Anthony Kongats, CEO of CAP-XX said:

"This has been an exciting year in the development of CAP-XX. We are seeing tangible traction in our target markets, as evidenced by the level of enquiries and size of initial orders. The strong performance of our licences is a further affirmation of this trend, reflected in the sharp growth in royalty receipts. We continue to invest in product development, adding to our portfolio of IP and are receiving an unprecedented level of enquiries from potential licensees. This traction together with our own operating performance gives us great confidence that CAP-XX will be at the forefront of the rising trend for the adoption of supercapacitors as a mainstream source of portable energy storage."

Electronic copies of CAP-XX's audited annual report and accounts for the year ended 30 June 2017 will shortly be available from the Company's website: www.cap-xx.com.

For further information contact:

CAP-XX Limited

   Anthony Kongats (Chief Executive Officer)                                    [phone] 

Kreab (Financial PR)

Robert Speed [phone]

Allenby Capital (Nominated Adviser and Broker

David Hart / Alex Brearley [phone]

More information is available at www.cap-xx.com

Notes to Editors:

CAP-XX (LSE: CPX) is a world leader in the design and manufacture of thin, flat supercapacitors and energy management systems used in portable and small-scale electronic devices, and to an increasing extent, in larger applications such as automotive and renewable energy. The unique feature of CAP-XX supercapacitors is their very high power density and high energy storage capacity in a space-efficient prismatic package. These attributes are essential in power-hungry consumer and industrial electronics, and deliver similar benefits in automotive and other transportation applications. For more information about CAP-XX, visit www.cap-xx.com

 
 Chairman's statement 
  The twelve months under review has seen good progress towards the 
  delivery of the Company's long-term growth strategy, with large 
  volume design wins and an increased interest in the CAP-XX product 
  range for the Internet of Things (IoT) market segment. Revenues 
  from royalties are continuing to increase with contributions from 
  both AVX and Murata, whilst licensing opportunities, especially 
  in the automotive sector, continue to gather momentum. The Company 
  has several opportunities in different stages of discussion and 
  negotiation. The operational initiatives to streamline and increase 
  CAP-XX's manufacturing capabilities continue to deliver positive 
  results. 
 
  The operating result for the year to June 2017 was a loss of A$1.7 
  million (2016: loss of A$1.3 million). Cash reserves as at the end 
  of June 2017, were A$3.9 million which was up from A$0.3 million 
  as at in 30 June 2016, as a result of the capital raising that was 
  completed in January 2017 (GBP2.43 million). The Federal Government 
  R&D tax rebate is expected to be approximately A$1,551,000 (2016: 
  A$1,537,000) with funds expected to be received during October 2017. 
  The available tax rebate for the year ended 30 June 2017 has decreased 
  from 45% of eligible R&D spending in Australia to 43.5%. Given the 
  anticipated increase in product sales, license and royalty payments 
  and the decrease in the overall cash burn, the Board remains confident 
  that the Company's existing cash reserves will be adequate to satisfy 
  the Company's short to medium cash requirements and to accelerate 
  product and business development opportunities. 
 
  Total sales revenue for the year to 30 June 2017 was A$4.1 million 
  (2016: A$5.0 million). Product sales were down on the previous year, 
  principally due to the non-operation of our manufacturing plant 
  for a period of seven weeks towards the end of the first half of 
  the year, due to a raw material supply issue. This issue was rapidly 
  resolved and the plant had returned to normal operations by the 
  end of the third quarter of the financial year. 
 
  Interest in CAP-XX's small product range is sharply on the increase. 
  The IoT market is the major market which has generated significant 
  interest in the CAP-XX small prismatic products. In August 2017, 
  the Company announced its first high volume design win in this market 
  and the Board is excited by the quality, number and volume of sales 
  opportunities. An additional point to highlight is that these opportunities 
  are not concentrated from one particular customer or market segment, 
  although, the overall level of interest emanating from the wearable, 
  health, automotive, security, metering and energy harvesting segments 
  is on the increase. The newly released cylindrical cells have enabled 
  CAP-XX to provide a full product range offering, and has assisted 
  with cross-selling opportunities. Customers are currently evaluating 
  our cylindrical cans for large volume opportunities. 
 
  The Board is very encouraged by the progress of the Company's automotive 
  offering over the last twelve months. During the year the truckStart 
  product was further improved and evaluation units of three new automotive 
  modules were delivered to customers. The pipeline of sales opportunities 
  is at the limit of our capacity to evaluate and the potential volumes 
  that would be required far exceed our current capacity. Our strategy 
  remains to partner with an automotive Tier-1 or Tier-2 manufacturer 
  for customer interface, production and sales, but as announced on 
  7 June 2017, progress has been slower than initially expected. Worldwide 
  interest still remains strong, with notable opportunities gaining 
  momentum in Europe, the Americas and Asia. These are the markets 
  that are demonstrating the most interest in the CAP-XX large cell 
  technology that serves automotive, truck and military applications. 
  Product development and manufacturing refinement has continued to 
  ensure that the CAP-XX offering meets the customers' expectations. 
  Internal projects have also been implemented as individual end-customer's 
  requirements are quite specific. CAP-XX was successful in being 
  awarded the Society of Automotive Engineers- Australasia's, 2016 
  platinum award for overall engineering excellence for an automotive 
  project. 
 
  AVX commenced quarterly royalty payments on 1 July 2016 as per its 
  license agreement and also paid the first anniversary Licensee fee 
  of GBP750,000 in June 2017. Regular discussions and negotiations 
  have been on-going with AVX, in order to determine market priorities 
  and how CAP-XX and AVX can collaborate in order to build upon existing 
  market penetration and co-operate to enhance both companies' offerings. 
  AVX has been extremely active in the supercapacitor market and has 
  launched two new product families during the past financial year. 
  Murata continues to go from strength to strength. Since April 2016, 
  when Murata and CAP-XX agreed to extend and broaden the existing 
  license agreement, the royalty payments from Murata have continued 
  to grow, notably in the past six months. The most recent quarterly 
  royalty payment received from Murata in August 2017, which was for 

  the April - June 2017 sales period, was up 51% on the previous quarterly 
  royalty payment and up 81% relative to the same period of the previous 
  year. 
 
  It is pleasing to note that overall operational expenditure has 
  decreased from A$5.8 million in the previous year to A$5.3 million 
  in the year ended 30 June 2017, given the Board's commitment to 
  continuous improvement in product development and manufacturing 
  excellence. The Company has taken the decision to strengthen its 
  operations team in order to accelerate improvements in manufacturing, 
  including new products; cycle time; capacity; production efficiency 
  and unit cost of manufacturing. Early signs are promising, however, 
  the full benefit will be realised in the year ending 30 June 2018. 
  Expenditure on general corporate overheads has been tightened from 
  the previous year. Expenditure associated with R&D activities has 
  again increased year-on-year with A$3.6 million being incurred, 
  which is up from A$3.4 million in the previous year. A new website 
  has been launched, which received good customer reviews and an on-line 
  web store was also opened with good results. 
 
  Our major R&D focus over the past twelve months has been to concentrate 
  on improving the current product's operating performance and the 
  development of new products. As a result, new intellectual property 
  has been developed with associated patents being filed, which further 
  strengthens the existing CAP-XX patent portfolio. Opportunities 
  for collaborative research grants and joint ventures have been executed 
  and others are currently being considered. 
 
  The Board are buoyed by the progress made over the past twelve months 
  and remain confident of the Company's continuing success. 
 
  Patrick Elliott 
  Chairman 
 Business Review 
  Review of Operations and Activities 
 
  The royalties from Murata are continuing to grow, with the latest 
  quarterly royalty payment received in August 2017 being 51% higher 
  than the previous quarter and up 81% on the same quarter from the 
  previous year. The Board is confident that the Murata royalties 
  will continue to increase over the next twelve months, especially 
  with the broadening of the Murata license which was agreed to in 
  April 2016. In the past twelve months, AVX also commenced quarterly 
  royalty payments and paid their first anniversary licence payment. 
 
  This progress with royalties is a further endorsement of our strategy 
  to develop substantial and recurring income from our intellectual 
  property, along with income from sales of small supercapacitors, 
  large supercapacitors and energy storage modules incorporating our 
  supercapacitor cells. Several other licence agreements are being 
  negotiated. 
 
  During the year, CAP-XX continued to invest significant resources 
  in redesigning products and processes to reduce manufacturing costs, 
  to improve product performance and introduce new products. Further, 
  an investment in operational headcount was made to strengthen the 
  current team and to accelerate key projects. We expect that the 
  majority of the benefits from this will be realised in the 2018 
  financial year. 
 
 
  Business Environment 
 
  The Board believes that CAP-XX's technology provides a competitive 
  advantage over other supercapacitor manufacturers, such as Maxwell 
  Technologies, Ioxus, Nippon Chemicon Corporation and other Chinese 
  and Korean competitors. The Directors further believe that other 
  manufacturers are unable to match the CAP-XX technology for thinness, 
  power density, energy density and reliability. Many competitors 
  manufacture higher-capacity, large package devices and focus on 
  applications where the combination of thinness, energy density and 
  power density is not an issue. In the future, as new products are 
  introduced by CAP-XX, the Company will offer other very significant 
  points of difference with its competition. 
 
  As reported last year, Internet of Things (IoT) applications, one 
  of the fastest growing segments of the electronics market, provide 
  one of the greatest opportunities for CAP-XX's products. Driven 
  by customer requests, manufacturers are constantly adding to the 
  functions and applications available on IoT-enabled devices. This 
  means that power management continues to be an increasingly important 
  consideration. The other important factor is size, as devices have 
  become smaller whilst their electrical power demands have increased. 
  The Company was successful in winning new business from a range 
  of markets, including our first high volume order for a wearable 
  technology product utilising our Thinline product. 
 
  Historically, CAP-XX has faced competition in various markets from 
  cheaper cylindrical supercapacitors where our thin form factor, 
  high power and long life are not valued as highly as lower initial 
  cost. To counter-act this, the Company released a range of cylindrical 
  cells. To date, several large volume opportunities are being evaluated 
  by existing customers that are currently utilising cheaper cylindrical 
  cells. In addition, our customers' markets are constantly evolving 
  as new products and technologies threaten the incumbents. In this 
  environment CAP-XX needs to always remain flexible to changing business 
  conditions. 
 
  Automotive applications such as truckStart, Stop-Start systems, 
  regenerative energy capture or KERS (Kinetic Energy Recovery Systems), 
  distributed power, hybrid electric vehicles and electric vehicles 
  also present very attractive opportunities for supercapacitors. 
  A number of CAP-XX's competitors are active in these markets, but 
  the Board believes that we have significant advantages over the 
  competition in certain applications upon which CAP-XX has focused 
  its efforts. During the year, numerous automotive OEMs and automotive 
  Tier-1/Tier-2 suppliers have purchased CAP-XX's products for evaluation; 
  however because of the significant resources that each project requires, 
  we have taken the decision to focus our resources on just a small 
  number of key automotive projects. Progress during the year with 
  these projects has been very pleasing. Three new automotive products 
  were designed to the customer's specifications, manufactured, tested 
  and evaluation units were delivered to customers including all the 
  necessary electronic circuitry. These products include a 48V system 
  to work with lithium ion batteries in hybrid vehicles; a 12v system 
  for stop-start; vehicle acceleration and regenerative braking; and 
  a 12V system for stop-start and support for the vehicle electronics. 
  However, as previously highlighted, automotive markets have historically 
  been slow to adopt new technology and this still remains a risk 
  today. The Company has also recently commenced two projects involving 
  the development of large supercapacitors for automotive defence 
  applications. 
 
 
  Opportunities 
 
  CAP-XX is continuing to refine the products that it offers for the 
  IoT, portable electronics and other markets for our traditional 
  small supercapacitors and our Thinline supercapacitors. The Thinline 
  range of supercapacitors, which are just 0.6mm thick, were developed 
  to address the space-constrained needs of the IoT and during the 
  year we achieved our first design win for a large volume Thinline 
  wearable product. The Company is actively dealing with many other 
  similar applications, where the feedback has been very positive 
  and the potential sales opportunities are very large. All of these 
  markets are forecast to be very high volume opportunities. 
 
  As already noted, CAP-XX is concentrating on a small number of automotive 
  opportunities for passenger vehicles and heavy vehicles. To further 
  increase our likelihood of success, CAP-XX is looking to partner 
  with Automotive Tier-1/Tier-2 suppliers through either a new licence 
  agreement or a joint venture to supply the automotive markets. The 
  Board believes that such partnerships will be beneficial for all 
  parties involved. 
 
  We expect royalty sales from Murata and AVX to continue to grow 
  significantly in the coming years, as more consumer applications 
  adopt supercapacitor technology. 
 
  A significant additional benefit of the Murata and AVX licencing 
  agreements is that they validate CAP-XX's technology leadership 
  in the field of supercapacitors and energy storage, and the potential 
  for supercapacitors as a mainstream consumer electronics technology. 
  The Murata and AVX product line and sales activities are also increasing 
  our exposure to markets and customers that were previously beyond 
  our reach. Association with Murata and AVX is also helping CAP-XX 
  gain recognition, win acceptance for our supercapacitors, and reduce 
  misconceptions about the price and performance of supercapacitors. 
  It is also important that Murata's and AVX's strategy is to offer 
  product ranges targeted at certain end markets. As such, Murata 
  and AVX will not meet the product type or size requirements of all 
  markets and all applications, leaving room for CAP-XX to supply 
  these markets directly using products made by its contract manufacturers. 
 
 
  Strategies for Growth 
 
  The Company is exploring opportunities in several new markets to 
  leverage its strong intellectual property and engineering expertise 
  through new license agreements, joint ventures and collaborative 
  R&D partnerships. Given the increasing levels of market interest 
  in CAP-XX's technology and our high performance supercapacitors, 
  the Company believes that the IoT and automotive markets in particular 
  offer significant opportunities for growth. 
 
  The Company continues to engage in discussions aimed at securing 
  business with a number of global OEMs. We are strengthening relationships 
  with these organisations and have regular engineering meetings with 
  their design teams and manufacturing groups or contract manufacturers. 

  We are unable to comment on specific clients, but are pleased with 
  overall progress and are confident that the available market for 
  supercapacitors is increasing as manufacturers become familiar with 
  the technology. 
 
  The Company will continue to monitor new opportunities to increase 
  the product offering, both through the current distributors and 
  direct to customers. These offerings may take the form of complementary 
  energy storage devices and modules. 
 
 
  Research and Development 
 
  CAP-XX's R&D efforts are focused on a mix of short, medium and long-term 
  opportunities, covering further cost reductions and improved product 
  performance. CAP-XX has a research facility in Sydney, Australia, 
  where a team of 19 engineers and scientists work to maintain CAP-XX's 
  leading technology position in electrodes, separators and electrolyte 
  materials and their assembly into supercapacitor devices. During 
  the year significant progress was made in a number of key areas 
  including: increasing the peak voltage of our supercapacitor cells; 
  reducing the resistance of our cells; improving the life of our 
  cells; reducing the cost per cell and developing new electronics 
  to optimise the performance of our modules. We have also signed 
  numerous collaboration agreements with several leading Research 
  and Aerospace institutions, whilst our Scientific Advisory Board 
  provides the Company with clear direction on commercially relevant 
  technologies for our ongoing R&D programme. 
 
  The markets in which the Company operates are competitive and are 
  characterised by rapid technological change. CAP-XX has a strong 
  competitive position in prismatic supercapacitors for all of its 
  target markets, with its capability to produce supercapacitors with 
  a high energy density and power density in a small conveniently 
  sized flat package. CAP-XX's devices are also lightweight, work 
  over a broad temperature range and have an operating lifetime measured 
  in years. 
 
  The Company's success depends on its ability to protect and prevent 
  any infringements of its intellectual property. To protect this 
  important asset, the Company has considerable intellectual property 
  embodied in its patents covering the design, manufacture and use 
  of its high performance supercapacitors. The CAP-XX patent portfolio 
  currently consists of 18 patent families with 45 granted national 
  patents with an additional 12 applications pending in various jurisdictions. 
  The Company's intellectual property strategy has been to build company 
  value by focusing on opportunities to capture market share and exclude 
  competition with an IP portfolio capable of generating licensing 
  revenue. The Directors believe that comprehensive embodiments and 
  interlocking patent groups, combined with a 'quick to file, quick 
  to abandon' policy, have given the Company a strong and focused 
  IP portfolio. 
 
 
  Outlook 
 
  The major short-term focus for CAP-XX is to drive the adoption of 
  the Company's intellectual property and products, both large and 
  small, into key target markets through future licence deals; joint 
  ventures and direct product sales. Although much has been achieved 
  in the past, the Company expects to see additional progress over 
  the next twelve months and beyond. 
 

CAP-XX Limited

Statement of profit or loss

For the year ended 30 June 2017

 
                                                   Consolidated 
 
                                                   2017          2016 
Currency: Australian Dollars         Notes          $              $ 
 
Revenue from continuing operations     1       4,142,119      4,965,448 
Cost of sales                          2     (2,233,555)    (2,359,612) 
                                            ------------  ------------- 
Gross Profit                                   1,908,564      2,605,836 
 
Other revenue                          1          30,009         25,597 
Other income                           3       1,682,364      1,867,444 
 
General and administrative 
 expenses                                    (2,068,557)    (2,589,480) 
Process and engineering expenses               (863,307)      (885,418) 
Selling and marketing expenses                 (713,429)      (664,239) 
Research and development expenses            (1,511,271)    (1,548,300) 
Other expenses                         4       (128,622)      (103,692) 
                                            ------------  ------------- 
Loss before income tax                       (1,664,249)    (1,292,252) 
                                            ------------  ------------- 
 
Income tax benefit                                     -              - 
 
Net loss for the year                        (1,664,249)    (1,292,252) 
                                            ------------  ------------- 
 
Loss attributable to owners 
 of CAP-XX Limited                           (1,664,249)    (1,292,252) 
                                            ============  ============= 
 
Earnings per share for loss 
 attributable to the ordinary 
 equity holders of the Company                     Cents        Cents 
Basic loss per share                   5           (0.6)        (0.5) 
Diluted loss per share                 5           (0.6)        (0.5) 
 
 

CAP-XX Limited

Statement of comprehensive income

For the year ended 30 June 2017

 
                                                             Consolidated 
 
                                                        2017              2016 
    Currency: Australian Dollars          Notes          $                 $ 
    Loss for the year                                  (1,664,249)       (1,292,252) 
    Other comprehensive income 
    Items that may be reclassified 
     subsequently to profit or loss 
    Exchange differences on translation 
     of foreign operations                                   6,551          (45,042) 
    Other comprehensive loss for 
     the year, net of tax                                    6,551          (45,042) 
    Total comprehensive loss for 
     the year attributable to owners 
     of CAP-XX Limited                                 (1,657,698)       (1,337,294) 
 
 

CAP-XX Limited

Statement of financial position

As at 30 June 2017

 
                                                   Consolidated 
 
                                          June 30, 2017      June 30, 2016 
Currency: Australian Dollars    Notes               $               $ 
 
ASSETS 
Current assets 
Cash and cash equivalents                     3,881,792            331,631 
Receivables                                     419,146          2,078,941 
Inventories                                   1,321,327          1,365,524 
Other                                         1,676,618          1,700,147 
                                        ---------------  ----------------- 
Total current assets                          7,298,883          5,476,243 
                                        ---------------  ----------------- 
 
Non-current assets 
Property, plant and equipment                   369,779            364,695 
Other                                           236,507            236,507 
                                        ---------------  ----------------- 
Total non-current assets                        606,286            601,202 
                                        ---------------  ----------------- 
 
Total assets                                  7,905,169          6,077,445 
                                        ---------------  ----------------- 
 
LIABILITIES 
Current liabilities 
Payables                                      1,013,954            642,358 
Provisions                                      682,962            663,069 
Secured Loans                                         -          1,000,000 
Total current liabilities                     1,696,916          2,305,427 
                                        ---------------  ----------------- 
 
Non-current liabilities 
Provisions                                       91,756             65,664 
                                                         ----------------- 
Total non-current liabilities                    91,756             65,664 
                                        ---------------  ----------------- 
 
Total liabilities                             1,788,672          2,371,091 
                                        ---------------  ----------------- 
 
Net assets                                    6,116,497          3,706,354 
                                        ===============  ================= 
 
 
EQUITY 
Contributed equity                           98,343,719         94,558,726 
Reserves                                      4,324,973          4,035,574 
Accumulated losses                         (96,552,195)       (94,887,946) 
                                                         ----------------- 
TOTAL EQUITY                                  6,116,497          3,706,354 
                                        ===============  ================= 
 

Statement of cash flows

For the year ended 30 June 2017

 
                                              Consolidated 
 
                                            2017        2016 
Currency: Australian Dollars                 $            $ 
 
Cash flows from operating activities 
Receipts from customers (inclusive 
 of goods and services tax)               6,574,124    4,167,729 
Payments to suppliers and employees 
 (inclusive of goods and services 
 tax)                                   (7,221,745)  (8,466,934) 
                                        -----------  ----------- 
                                          (647,621)  (4,299,205) 
Tax credit received                       1,546,175    1,127,272 
Interest received                            30,009       25,597 
                                        -----------  ----------- 
Net cash (outflow) from operating 
 activities                                 928,563  (3,146,336) 
                                        ===========  =========== 
 
Cash flows from investing activities 
Payments for property, plant 
 and equipment                            (169,946)    (252,788) 
Net cash (outflow) from investing 
 activities                               (169,946)    (252,788) 
                                        ===========  =========== 
 
Cash flows from financing activities 
Proceeds from issue of shares 
 (net of costs)                           3,784,993      132,379 
Proceeds from Loan                      (1,000,000)    1,000,000 
Net cash inflow from financing 
 activities                               2,784,993    1,132,379 
                                        ===========  =========== 
 
Net increase/(decrease) in 
 cash and cash equivalents                3,543,610  (2,266,745) 
Cash and cash equivalents at 
 the beginning of the financial 
 year                                       331,631    2,643,418 
Effects of exchange rate changes 
 on cash and cash equivalents                 6,551     (45,042) 
                                        -----------  ----------- 
Cash and cash equivalents at 
 the end of the financial year            3,881,792      331,631 
                                        ===========  =========== 
 

Notes to the financial statements

Basis of preparation

The financial information included in this announcement does not constitute statutory accounts within the meaning of the Australian Corporations Act 2001. Whilst the financial information has been computed in accordance with Australian equivalents to International Financial Reporting standards, other authoritative pronouncements of the Australian Accounting Standards Board, Urgent Issues Group Interpretations and the Corporations Act 2001, this announcement does not itself contain sufficient information to comply with those requirements.

 
Note 1 Revenue                      Consolidated 
                                     2017       2016 
                                      $          $ 
Sales revenue 
Sale of goods & services        4,142,119  4,965,448 
                                4,142,119  4,965,448 
                                ---------  --------- 
 
Other revenue 
Interest                           30,009     25,597 
                                ---------  --------- 
                                   30,009     25,597 
                                ---------  --------- 
 
 
 
Note 2 Cost of Sale of Goods           Consolidated 
                                        2017       2016 
                                         $          $ 
 
Direct materials and labour        1,732,747  1,913,692 
Indirect manufacturing expenses      500,808    445,920 
                                   ---------  --------- 
                                   2,233,555  2,359,612 
                                   ---------  --------- 
 
 
Note 3 Other income                                    Consolidated 
                                                        2017                    2016 
                                                         $                        $ 
 
Foreign Exchange Gains - (net)                                    130,482      17,907 
 R&D Tax Incentive                                              1,551,483   1,537,925 
Make Good provision                                                     -     249,856 
Miscellaneous Income                                                  399      61,756 
                                      -----------------------------------  ---------- 
                                                                1,682,364   1,867,444 
                                      -----------------------------------  ---------- 
 
 
Note 4 Other Expenses                   Consolidated 
                                        2017            2016 
                                          $              $ 
 
Provision for Withholding 
 Tax Diminution                           91,277         108,159 
Provision for credit notes 
 / doubtful debts                       (16,762)           5,527 
Provision for make good on 
 premises                                  5,527          91,277 
  Provision for returns and 
   rework                                      -         (9,119) 
  Interest Expense                        48,580          22,706 
                                         128,622         103,692 
                                ----------------  -------------- 
 Note 5 Loss per share                  Consolidated 
                                        2017            2016 
                                         $               $ 
 
Net loss                             (1,664,249)  (1,292,252) 
 
Loss per share - undiluted              ($0.006)     ($0.005) 
 
Weighted Average Share on 
 Issue during the year               282,084,311  269,048,064 
 
 

-Ends-

This information is provided by RNS

The company news service from the London Stock Exchange

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October 09, 2017 02:00 ET (06:00 GMT)