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ASX ANNOUNCEMENT
26 February 2018
MedAdvisor HY18 Interim Results
Record revenue of $3.25m, more than doubling 1H FY18 revenue
Highlights
• Revenue from continuing operations totalled $3.25m, representing a +110% increase on the
corresponding half year period
• An increase in revenue driven by growth of SaaS revenue from pharmacy subscriptions and a
growing user-based revenue stream – now accounting for 39% of operating revenue
• Domestic growth continues across the market, with users reaching 960k vs 630k in 1H FY17
• A $9.5m equity investment from healthcare giant EBOS strengthened the balance sheet
• The new PlusOne platform rolling out to pharmacies nationwide and new offerings are
expected to further drive user-based revenue growth
• MOU with EBOS subsidiary HPS to open a potentially significant new market opportunity to
reduce the incidence of readmissions in hospitals
MedAdvisor Limited (ASX: MDR, the Company) has today released its Appendix 4D and is pleased
to provide its Interim Financial Report for the 6-month period ending 31 December 2017 (1H FY18).
Financial Overview
MedAdvisor reports record revenue from continuing ordinary activities of $3.25m, up 110% on the
prior corresponding period and setting the business up for a strong FY18 year-end. Total revenue
was $3.31m and the Company continues to operate a high gross margin of 87% growing in line
with prior periods and management expectations.
The Company reported a net loss of $2.26m for the period vs $2.04m for HY17. The loss is attributed
to growth in operating costs associated with scaling the business and establishing new customer
offerings. Gross Margin of 87% exceeds the fixed operating costs which are currently 85% of
operating revenues (versus 108% in the prior corresponding period). Total expenditure totalled
$5.58m for the half year period.
SaaS revenue from pharmacy subscribers grew by 65%, due to new pharmacies on-boarding and
an increase in monthly subscription fees charged due to enhancements in the technology and
additional services and capabilities added. User-based revenue from Patient Engagement
Programs (PEPs), SMS services, booking fees and the increase of transactional fees in relation to
Professional Services booked now account for 39% in revenue vs 32% in the prior corresponding
period. User based revenue has grown by a lower percentage than SaaS in H1FY18.
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H1 2017 Revenue Breakdown v H1 2018 Revenue Breakdown
User-based revenue continues to increase in dollar terms supported by connected patient growth
and as the Company seeks out new opportunities to add new capabilities that enable its
pharmacy customers to increase their revenue opportunities.
Operational Overview
End HY17 End HY18 % Change
Total connected patients at period end 630,000 960,000 +52%
Average number of patients per pharmacy 250 ~312 +25%
Value of scripts processed via TTR/GP Connect $56m $126m +125%
Number of Patient Engagement Programs 18 26 +44%
The Company reported that over 960,000 patients were connected to the platform as at 31
December 2017. This represents only ~8% of patients with a chronic disease in Australia (AIHW 2015).
Revenue from Patient Engagement Programs (PEPs) also increased by 87% compared to the same
period last year. The growth of the patient user base continues to drive Australia’s largest
manufacturers to MedAdvisor with a total of 26 programs contracted to the platform as at end
December 2017.
Patients per pharmacy are increasing, indicating the support from pharmacies to promote the
app to its customers. Furthermore, the engagement from the patient user base is growing with the
Tap-to-Refill function continuing to show strong patient usage.
In H1 2018 a total of 3.16m scripts were processed, representing an annualised rate of >$250 million
in script value (~$126m processed H1 FY18) through the platform. This compares to $110m
annualised script value ($56m processed) in H1 FY17.
$0m
$50m
$100m
$150m
$200m
$250m
$300m
2H FY16 1H FY17 2H FY17 1H FY18
Tap to Refill - Annualised Script Value
Source: MedAdvisor
Source: MedAdvisor
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Technology Enhancements Driving Revenue Opportunities
PlusOne is a patient communication, professional services and pharmacy marketing platform. The
launch of the PlusOne platform and its new Health Services Hub that is now being rolled out to
MedAdvisor’s pharmacy network will help pharmacies drive up their services income and allow
MedAdvisor to bring new revenue opportunities to pharmacies which in turn will drive additional
revenue.
The potential of PlusOne is in the early phases and the Company expects to see an uplift in both
usage and transactional revenue as pharmacies across its network unlock the value available to
them from the platform. The increased capabilities have also enabled MedAdvisor to increase its
subscription fees by ~20%, driving its SaaS revenue.
International Expansion
Two regional advisors joined the MedAdvisor business to identify and evaluate market entry
strategies in the UK and US. Both markets represent substantial opportunities, with no dominant
digital medication management technology, significant patient populations and rising healthcare
costs. Mr Jamal Butt (ex Boots & Lloyds) and Mr Keith Kiarsis (ex Adheris) continue to develop
opportunities with leading market participants in the US and the UK to determine the best market
entry strategy for MedAdvisor and the most appropriate path to market. The evaluation phases
are well progressed, and the Company looks forward to providing an update to the market when
appropriate.
Corporate update
MedAdvisor and EBOS Group Limited entered into a number of commercial agreements to enable
MedAdvisor to leverage EBOS’ healthcare portfolio to drive customer acquisition and new revenue
opportunities. A Heads of Agreement with TerryWhite Chemmart has cemented MedAdvisor’s
position as the preferred provider to its pharmacy network and a Memorandum of Understanding
with EBOS’ healthcare communications business, Zest, will see MedAdvisor become the preferred
digital distribution channel for the delivery of digital health programs.
The partnership also introduced a significant new and important channel, through an MOU with
EBOS owned HPS, Australia’s largest provider of outsourced pharmacy services to hospitals.
MedAdvisor is working closely with HPS and Zest to establish a comprehensive patient discharge
program across its hospital pharmacies that could result in more than 5,000 patients a week being
offered MedAdvisor’s services.
The Company continues to work closely with all parties to sign formal binding agreements, which
will be announced to the market in due course.
Outlook
MedAdvisor has a significant opportunity for expansion within the hospital channel. Through its
strategic partnership with EBOS, the Company has a strategic partner in HPS. HPS handle in excess
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of 250,000 discharges p.a. across a number of private hospitals. The Company is now developing
a hospital admission and discharge product and process that will leverage MedAdvisor’s
capabilities to connect with their primary healthcare providers and help patients increase their
adherence. Once fully rolled out, MedAdvisor expects this initiative to significantly reduce the
number of hospital readmissions at these hospitals, whilst growing connected patients.
Management are focused on scaling the business and will continue to reinvest in growth of the
Company. The new opportunities in the hospital channel are exciting and will in turn introduce new
revenue opportunities once MedAdvisor has a product in market. The Company is well funded
following the $9.5m investment from EBOS and closed the half year with $12.3m in cash.
---ENDS---
For more information
Carlo Campiciano
CFO & Comany Secretary
Tel: +61 3 9095 3036
Jennifer Duraisingam
Corporate Communications Manager
Tel: +61 3 9095 3036
About MedAdvisor
MedAdvisor is a world class medication management platform focused on addressing the gap
and burden of medication adherence. Founded with a desire to simplify medication
management, the highly automated and intuitive Australian software system connects patients to
their local pharmacy and GP, providing them with real time access to their personal medication
records. Available free on mobile and internet devices, the platform also incorporates a variety of
valuable and convenient features including reminders and pre-ordering of medications, which
together improves adherence by approximately 20%.
Since launching in 2013, MedAdvisor has welcomed over 960,000 users through its connections with
~50% of pharmacies across Australia.
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MEDADVISOR LIMITED
Appendix 4D
Half-year Report
Page 1
1. Company Details
Name of Entity: MEDADVISOR LIMITED
ABN: 17 145 327 617
Reporting period: For the half-year ended 31 December 2017
Previous period: For the half-year ended 31 December 2016
2. Results for Announcement to the Market
to
Loss from ordinary activities after tax attributable to the
owners of MedAdvisor Limited up 10.8% to (2,263)
Loss for the half-year attributable to the owners of
MedAdvisor Limited up 10.8% to (2,263)
Dividends
Not applicable
Comments:
Total Revenue Breakdown:
Ordinary revenue 3,258 1,548
Patients activated on the MedAdvisor Platform
Average patients per pharmacy
The above excludes metrics related to Chemist Warehouse stores that are currently subscribed to the
Healthnotes service.
The loss of the consolidated entity after providing for income tax was $2,264,654 (31 December, 2016
$2,042,639)
6 months
31-Dec-17
6 months
31-Dec-16
Other income (R&D Tax Concession & Interest)
-
-
3,258
28
28
1,577
Non financial metrics:
Enrolled pharmacies
up > 9% > 2,665
$'000
3,258
Revenues from ordinary activities up 110.4% 110.4%
up > 52% > 960,000
up > 25% > 312
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MEDADVISOR LIMITED
Appendix 4D
Half-year Report
Page 2
3. Net Tangible Assets
Net tangible assets per ordinary security 0.8757 0.5296
4. Control Gained or Lost over Entities
Control Gained
Not applicable
Control Lost
Not applicable
5. Additional Dividend Information
Not applicable
6. Dividend Reinvestment Plans
Not applicable
7. Details of Associates and Joint Venture Entities
Not applicable
8. Audit Qualification or Review
The financial statements were subject to a review by the auditors and the review report is attached as part of
the Interim Report.
9. Attachments
The Interim Report of MedAdvisor Limited for the half-year ended 31 December, 2017 is attached.
10. Signed
Robert Read Director
Camberwell, Victoria Dated: 22 February 2018
Reporting
period
Cents
Previous
period
Cents
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Page | i
MEDADVISOR LIMITED ABN 17 145 327 617
CONDENSED FINANCIAL REPORT FOR HALF YEAR ENDED 31 DECEMBER 2017
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MEDADVISOR LIMITED ABN 17 145 327 617
Page | ii
CONDENSED FINANCIAL REPORT FOR HALF YEAR ENDED 31 DECEMBER 2017
CONTENTS Page
Directors’ Report 1
Auditor’s Independence Declaration 4
Condensed Statement of Profit or Loss and Other Comprehensive Income
5
Condensed Statement of Financial Position 6
Condensed Statement of Changes in Equity 7
Condensed Statement of Cash Flow 8
Notes to the Condensed Financial Statements 9
Directors' Declaration 15
Independent Auditor's Review Report 16
The Condensed financial report is presented in Australian currency.
Its registered office and principal place of business is:
The registered office is: The principal place of business is:
MedAdvisor Limited MedAdvisor Limited
Level 4 Level 4
969 Burke Road 969 Burke Road
CAMBERWELL VIC 3124 CAMBERWELL VIC 3124
A description of the nature of the consolidated entity's operations and its principal activities are included in the directors' report, which is not part of the financial statements.
The financial statements were authorised for issue in accordance with a resolution of directors on 22 February 2018.
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MEDADVISOR LIMITED ABN 17 145 327 617
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Directors’ Report
The names of the company's directors who held office during or since the end of the financial half-year are:
Mr Peter Bennetto
Mr Robert Read
Mr Joshua Swinnerton
Mr Jim Xenos
Ms Sandra Hook
Principal Activities
The principal activities of the Entity continue to be the enhancement and growth of the MedAdvisor
medication and adherence platform. The MedAdvisor platform is focused on improving health
outcomes by connecting health professionals with their patients using mobile and web technologies.
Review of Operations
During the current period the business has achieved the following important milestones:
1. In October 2017, EBOS Group Limited (EBOS) invested $9.5m to accelerate the product development and growth of the business. A key opportunity is to develop the relationship with HPS Services Pty Ltd (HPS) a fully owned subsidiary of EBOS; to assist patients with their transitions to and from hospital.
2. MedAdvisor was announced as the preferred provider of Terry White Chemmart, one of the largest pharmacy groups in Australia by store numbers. MedAdvisor was also announced the preferred digital provider for Zest Healthcare Communications and HPS to help reduce readmissions to hospital. These agreements will be completed in H2.
3. MedAdvisor achieved a record H1 FY18 revenue of over $3.26m achieved.
4. MedAdvisor now boasts over 960,000 patients connected via its software platforms.
5. MedAdvisor launched PlusOne pharmacy Software that adds new services and capabilities to pharmacy including the ability to grow their services revenue leveraging the platform.
Revenue Drivers
• MedAdvisor now has over 960,000 patients connected to the platform. These patients can receive reminders and order their medications at their favourite pharmacies. SMS reminders generate revenue and margin. In addition, they can now link in with their GPs to order scripts.
• Growth of Patient Engagement Programs (PEPs) has continued with new large pharma companies signing on and others renewing for their third year. The Health Services Hub will allow these businesses to augment important safety information provided digitally with pharmacist led face to face interventions where appropriate.
• The pharmacy market is fragmented with over 3500 owners for ~5400 pharmacies. Meaning the channel has been hard to engage with for program funders. MedAdvisor now has over 50% of the pharmacy market as subscribers to its software which opens new opportunities for MedAdvisor to bring new health services to be delivered via pharmacy.
• User based revenue is now 39% of total revenue, up from 32% on the corresponding period last year.
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MEDADVISOR LIMITED ABN 17 145 327 617
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• Revenue growth of 110% is increasing faster than operating cost growth of 53%.
• Fixed operating expenses have dropped from 108% of operating revenues in the corresponding period last year to 85% of operating revenues in current reporting period. Similarly, expenditure on growth initiatives has fallen from 111% of operating revenues in the corresponding period in 2016 to 73% in 2017 December half year.
Sales and Marketing Progress
• MedAdvisor has continued to work with top tier pharmaceutical companies to help provide quality use of medicines information to patients to improve adherence to medication and health outcomes. There are approximately 26 programs contracted to MedAdvisor across 14 companies. MedAdvisor has also recently moved into 3rd year of contracts with some manufacturers.
International Development
• MedAdvisor appointed Mr Jamal Butt as Commercial Head of MedAdvisor in the UK. Mr Butt has extensive experience as former Head of Pharmacy at Boots and running a large business within Lloyds and he will assist the company assess partnership opportunities for market entry.
• Mr Keith Kiarsis was appointed as USA Country Head to also pursue and assess the right opportunities in this market. The USA market is large and diverse so careful consideration about the best opportunities is important.
Technology Development
MedAdvisor appointed Dr David Chatterton as CTO, who was previously CTO at Aconex (ASX:ACX). New capability is being developed to assist the business integrate with others and scale more effectively.
Launch of PlusOne is a major step forward in both the technical and service capabilities of the company. It allows pharmacists to be more effective in the way they interact with their customers when they are both in store or at home. MedAdvisor will be able to bring new programs to be run through pharmacy that finally allows funders to consider pharmacy as a viable channel to run services to improve healthcare outcomes.
Significant Changes in State of Affairs
On 23 October 2017, the Company completed a capital raising of $9,500,000 through the issue of
165,217,391 shares at $0.0575c to EBOS Group Limited by way of a private placement. The proceeds of this
issue will be used to accelerate the strategic growth initiatives that will be undertaken over the coming 18
to 24 months.
Future Developments
MedAdvisor will continue to evolve its software for Patients, Pharmacies and GP’s. Following the EBOS
investment, MedAdvisor will now invest into developing a robust hospital admission and discharge process
in collaboration with its partners that will aim to reduce readmissions to hospital.
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MEDADVISOR LIMITED ABN 17 145 327 617
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Events Occurring after the Reporting Period
There are no matters or circumstances that have arisen since the end of the half-year which significantly
affected or could significantly affect the operations of the Company, the results of those operations, or the
state of affairs of the Company in future financial years.
Auditor's Independence Declaration
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act
2001 is included on the following page.
Signed in accordance with a resolution of the Directors:
Robert Read
Director
Camberwell, Victoria
Dated: 22 February, 2018
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Page 4
AUDITOR’S INDEPENDENCE DECLARATION As lead auditor for the review of the financial report of MedAdvisor Limited for the half year ended 31 December 2017, I declare that, to the best of my knowledge and belief, there have been no contraventions of:
(i) the auditor independence requirements of the Corporations Act 2001 in relation to the review; and
(ii) any applicable code of professional conduct in relation to the review.
RSM AUSTRALIA PARTNERS
P W FRASER Partner Melbourne, VIC 22 February 2018
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MEDADVISOR LIMITED ABN 17 145 327 617
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CONDENSED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
2017 2016
31-Dec-17 31-Dec-16
Notes $ $
Revenues from continuing operations 7 3,257,598 1,548,138
Other revenue 7 53,259 64,664
Direct expenses 8 (402,385) (259,452)
Development costs (395,861) (67,516)
Employee benefits expenses 8 (2,892,490) (1,841,359)
Marketing expense (1,226,650) (625,178)
Depreciation and amortisation expenses (103,953) (68,711)
Directors fees 8 (90,197) (95,802)
Other expenses (457,976) (653,161)
Finance costs 8 (4,785) (44,261)
Profit / (loss) before income tax (2,263,439) (2,042,639)
Income tax (expense) / income - -
Profit / (loss) for the year (2,263,439) (2,042,639)
Other comprehensive income - -
Total comprehensive income (loss) for the period (2,263,439) (2,042,639)
Loss per Share
Basic loss per share 4 (0.0020)$ (0.0026)$
Diluted loss per Share 4 (0.0020)$ (0.0026)$
Comparative figures are for the half year ended 31 December 2016
The above Condensed statement of profit or loss and other comprehensive income should be read in
conjunction with the accompanying notes.
Consolidated
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MEDADVISOR LIMITED ABN 17 145 327 617
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CONDENSED STATEMENT OF FINANCIAL POSITION
2017 2017
31-Dec-17 30-Jun-17
Notes $ $
ASSETS
Current Assets
Cash and Cash Equivalents 9 12,291,739 4,834,660
Trade and Other Receivables 10 1,140,909 429,636
Other Assets 11 160,243 182,644
Total Current Assets 13,592,890 5,446,940
Non-Current Assets
Other Assets 11 61,357 -
Fixed Assets 12 200,756 189,517
Intangible Assets 13 5,392,447 5,463,139
Total Non-Current Assets 5,654,560 5,652,656
Total Assets 19,247,450 11,099,596
LIABILITIES
Current Liabilities
Trade and Other Payables 14 1,166,940 1,016,210
Income in Advance 15 673,142 285,065
Employee Benefits 16 454,332 394,444
Total Current Liabilities 2,294,414 1,695,719
Non-Current Liabilities
Employee Benefits 16 60,857 49,585
Total Non-Current Liabilities 60,857 49,585
Total Liabilities 2,355,271 1,745,304
Net Assets 16,892,179 9,354,292
EQUITY
Contributed Equity 25,820,635 16,184,549
Reserves 1,424,513 1,259,273
Retained Profits / (Accumulated Losses) (10,352,969) (8,089,530)
Total Equity 16,892,179 9,354,292
Comparative figures are as at 30 June 2017
The above Condensed statement of financial position should be read in conjunction with the
accompanying notes.
Consolidated
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MEDADVISOR LIMITED ABN 17 145 327 617
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CONDENSED STATEMENT OF CHANGES IN EQUITY
Contributed Share Options Retained Total
Equity Reserve Earnings Equity
Notes $ $ $ $
Balance 1 July 2017 16,184,549 1,259,274 (8,089,530) 9,354,293
Ordinary Shares Issued 9,518,375 9,518,375
Capital Raising Costs (net of GST) (94,089) (94,089)
Share Options Issued 377,040 377,040
Share Options Exercised 211,800 (211,800) -
(2,263,439) (2,263,439)
Balance 31 December 2017 25,820,635 1,424,514 (10,352,969) 16,892,179
Balance 1 July 2016 6,508,117 615,914 (4,659,603) 2,464,428
Ordinary Shares Issued 10,200,000 10,200,000
Capital Raising Costs (net of GST) (537,068) (537,068)
Share Options Issued 250,946 250,946
(2,042,639) (2,042,639)
Balance 31 December 2016 16,171,050 866,860 (6,702,242) 10,335,668
Comparative figures are for the half year ended 31 December 2016
Consolidated
Consolidated
The above Condensed statement of changes in equity should be read in conjunction with the accompanying
notes.
Transactions with owners in their capacity as
owners:
Transactions with owners in their capacity as
owners:
Total comprehensive income for the half-
year
Total comprehensive income for the half-
year
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STATEMENT OF CASH FLOWS
2017 2016
31-Dec-17 31-Dec-16
Notes $ $
Cash Flows From Operating Activities
Receipts from customers (inclusive of GST) 3,068,325 2,066,022
Payments to suppliers and employees (inclusive of GST) (5,043,659) (3,596,706)
Interest received 52,612 36,009
Interest paid - (924)
Income tax paid - (3,924)
Net cash inflow (outflow) from operating activities (1,922,722) (1,499,523)
Cash Flows From Investing Activities
Payments for property, plant and equipment (48,950) (11,110)
Payments for acquisition of Health Enterprises 2 Pty Ltd, net
of cash acquired 18 - (2,819,797)
Net cash outflow from investing activities (48,950) (2,830,907)
Cash Flows From Financing Activities
Proceeds from new share issue 9,500,000 8,000,000
Capital Raising Costs (net of GST) (71,250) (537,068)
Payments to related parties - (94,405)
Net cash (outflow) inflow from financing activities 9,428,750 7,368,527
Net increase/(decrease) in cash held 7,457,078 3,038,097
Cash and cash equivalents at the beginning of the year 4,834,660 2,888,990
Cash and cash equivalents at the end of the year 9 12,291,739 5,927,087
Comparative figures are for the half year ended 31 December 2016
The above Condensed statement of cash flows should be read in conjunction with the accompanying
notes.
Consolidated
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MEDADVISOR LIMITED ABN 17 145 327 617
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NOTES TO THE CONDENSED FINANCIAL STATEMENTS
1. General
These financial statements represent those of MedAdvisor Limited (‘MedAdvisor’ or the ‘Company’) and the
entities it controls for the half-year ended 31 December 2017.
2. Basis of preparation
The half-year financial report is a general purpose financial report prepared in accordance with the
requirements of the Corporations Act 2001 and AASB 134 Interim Financial Reporting. Compliance with AASB
134 ensures compliance with International Financial Reporting Standard IAS 34 ‘Interim Financial Reporting’.
The half-year report does not include all of the information required in annual financial statements in
accordance with Australian Accounting Standards, and should be read in conjunction with the financial
statements of the Company for the year ended 30 June 2017 and any public announcements made by the
Company during the half-year in accordance with continuous disclosure requirements arising under the
Australian Securities Exchange Listing Rules and the Corporations Act 2001.
3. Critical accounting estimates and judgements
The directors evaluate estimates and judgments incorporated into the financial statements based on
historical knowledge and best available current information. Estimates assume a reasonable expectation of
future events and are based on current trends and economic data, obtained both externally and within the
company.
4. Earnings per Share
Both the basic and diluted loss per share have been calculated using the loss attributable to shareholders
of MedAdvisor Limited as the numerator, i.e. no adjustments to profits were necessary during the six (6)
month period to 31 December 2017.
The weighted average number of shares for the purposes of the calculation of diluted earnings per share can
be reconciled to the weighted average number of ordinary shares used in the calculation of basic earnings
per share as follows:
6 months to 6 months to
31-Dec-17 31-Dec-16
1,136,878,659 780,252,730
1,222,175,527 836,669,366
Weighted average number of shares used in basic earnings per
share
Weighted average number of shares used in diluted earnings
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NOTES TO THE CONDENSED FINANCIAL STATEMENTS – cont’d
5. Issued Capital
6. Operating segments
The Board has determined that the Company presently has two reporting segments. The first being the
business activities of the MedAdvisor medication management and adherence platform, including the
operations of the newly acquired Health Enterprises 2 Pty Ltd, and the second being the corporate function
associated with being an ASX listed company. The Board monitors the Company based on actual versus
budgeted revenue and expenditure incurred. This internal reporting framework is the most relevant to assist
the Board with making decisions regarding the Company and its ongoing activities.
31-12-17 31-12-17
# $
Shares
Balance at 30 June, 2017 945,381,426 16,184,549
New shares issued by MedAdvisor Limited for cash 165,217,391 9,500,000
Shares Issued as Consideration for Services 612,500 18,375
Read Rights Exercised 7,000,000 210,000
Employee Share Options Exercised 66,666 1,800
195,000,000 -
Share issue transaction costs, net of tax - (94,088)
Balance at end of reporting period 1,313,277,983 25,820,635
Options
Balance at 30 June, 2017 85,203,333
MedAdvisor Zero Cost Options under Employee Incentive Plan 12,860,000
5,000,000
Employee Incentive Plan Exercised (66,666)
Employee Incentive Plan Expired (240,000)
(7,000,000)
Balance at end of reporting period 95,756,667
R Read Performance Rights vested
Conversion of Founder Performance Shares to Ordinary Shares
R Read Performance Rights Exercised
MedAdvisor Corporate Total
$ $ $
2017
Revenues 3,310,857 - 3,310,857
Net Loss before Tax 1,770,116 494,538 2,264,654
Segment Assets 19,221,074 26,376 19,247,450
Total Assets 19,247,450
Segment Liabilities 2,330,134 25,137 2,355,271
Total Liabilities 2,355,271
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NOTES TO THE CONDENSED FINANCIAL STATEMENTS – cont’d
6. Operating segments – cont’d
7. Revenue
8. Expenses
MedAdvisor Corporate Total
2016
Revenues 1,612,489 312 1,612,801
Net Loss before Tax 1,665,504 377,135 2,042,639
Segment Assets 12,228,320 140,407 12,368,727
Total Assets 12,368,727
Segment Liabilities 2,029,599 3,461 2,033,060
Total Liabilities 2,033,060
6 months to 6 months to
31-Dec-17 31-Dec-16
$ $
From continuing operations
Sale of services 3,257,598 1,548,138
3,257,598 1,548,138
Other Revenue
Interest received 53,259 36,278
Sundry income - R&D Tax Concession - 28,386
53,259 64,664
Profit before income tax includes the following
specific expenses:
Direct Costs:
Platform access fees 52,392 210,857
Direct transaction costs 269,605 3,231
Managed services costs for the MedAdvisor Platform 80,388 45,363
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NOTES TO THE CONDENSED FINANCIAL STATEMENTS – cont’d
8. Expenses – cont’d
9. Cash and Cash Equivalents
10. Trade and Other Receivables
Employee Benefits Expenses:
Development 1,204,290 661,906
Marketing 858,039 600,876
Business development - international 78,381 28,925
Administration 374,542 298,706
Governance 90,197 95,802
Share based payments 377,238 250,946
2,982,687 1,937,161
Finance costs:
Financing costs - 41,827
Other bank charges 4,626 1,754
Interest expense 158 680
4,785 44,261
as at as at
31-Dec-17 30-Jun-17
$ $
Cash on Hand 303 303
Cash at Bank 12,121,207 4,779,885
Term Deposit 170,229 54,472
12,291,739 4,834,660
Trade Debtors 979,227 422,473
Other Debtors 161,681 7,163
1,140,909 429,636
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MEDADVISOR LIMITED ABN 17 145 327 617
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NOTES TO THE CONDENSED FINANCIAL STATEMENTS – cont’d
11. Other Assets
12. Property, Plant and Equipment
13. Intangible Assets
Current
Prepayments 160,243 137,980
Work in progress - 19,054
Security Deposits - 25,610
160,243 182,644
Non Current
Prepayments 61,357 -
61,357 -
Leasehold Improvements
Cost 156,190 155,140
Accumulated Depreciation (55,048) (39,534)
Written Down Value 101,142 115,606
Office Furniture & Equipment
Cost 136,797 99,655
Accumulated Depreciation (37,183) (25,744)
Written Down Value 99,614 73,911
Total Written Down Value 200,756 189,517
Goodwill
Cost 4,013,868 4,013,868
Intellectual property
Cost 113,261 113,260
Accumulated Amortization (40,500) (36,000)
Written Down Value 72,761 77,260
Software
Cost 1,470,000 1,463,692
Accumulated Depreciation (164,181) (91,681)
Written Down Value 1,305,819 1,372,011
Total Written Down Value 5,392,447 5,463,139
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MEDADVISOR LIMITED ABN 17 145 327 617
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NOTES TO THE CONDENSED FINANCIAL STATEMENTS – cont’d
14. Trade and Other Payables
15. Net Income in Advance
16. Employee Entitlements
17. Contingent Liabilities
There have been no changes to contingent liabilities or contingent assets since the last annual reporting
date.
18. Events after the Reporting Date
There are no matters or circumstances that have arisen since the end of the half-year which significantly
affected or could significantly affect the operations of the Company, the results of those operations, or the
state of affairs of the Company in future financial years.
End of Notes
Trade Creditors 351,460 379,810
Other Creditors & Accruals 815,480 636,400
1,166,940 1,016,210
Gross Pharmacy Subscriptions in Advance 478,323 128,294
Patient Engagement Programs 194,819 156,771
673,142 285,065
Current
Accrued Annual Leave 389,452 394,444
Accrued Long Service Leave 64,880 -
454,332 394,444
Non Current
Accrued Long Service Leave 60,857 49,585
60,857 49,585
Total Employee Entitlements 515,189 444,029
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MEDADVISOR LIMITED ABN 17 145 327 617
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DIRECTORS’ DECLARATION
The directors of the company declare that:
1. The financial statements and notes, as set out on page 5 to 14, are in accordance with the Corporations
Act 2001 and:
i. comply with Accounting Standards; and
ii. give a true and fair view of the financial position as at 31 December 2017 and of the performance
for the 6 months on that date of the company.
2. In the directors’ opinion, there are reasonable grounds to believe that the company will be able to pay
its debts as and when they become due and payable.
This declaration is made in accordance with a resolution of the Board of Directors.
Robert Read Director Camberwell, Victoria
Dated: 22 February 2018
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INDEPENDENT AUDITOR’S REVIEW REPORT
TO THE MEMBERS OF
MEDADVISOR LIMITED
We have reviewed the accompanying half-year financial report of MedAdvisor Limited which comprises the condensed statement of financial position as at 31 December 2017, the condensed statement of profit or loss and other comprehensive income, condensed statement of changes in equity and condensed statement of cash flows for the half-year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration of the consolidated entity comprising the company and the entities it controlled at the half-year end or from time to time during the half-year.
Directors’ Responsibility for the Half-Year Financial Report
The directors of the company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated entity’s financial position as at 31 December 2017 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of MedAdvisor Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.
A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
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Independence
In conducting our review, we have complied with the independence requirements of the Corporations Act 2001. We confirm that the independence declaration required by the Corporations act 2001, which has been given to the directors of MedAdvisor Limited, would be in the same terms if given to the directors as at the time of this auditor’s report.
Conclusion
Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of MedAdvisor Limited is not in accordance with the Corporations Act 2001 including:
(a) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2017 and of its performance for the half-year ended on that date; and
(b) complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations Regulations 2001.
RSM AUSTRALIA PARTNERS
P W FRASER Partner Melbourne, VIC 22 February 2018
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