Annual Report 2017OncoS

il Med

ical Lim

ited A

nnual R

eport 2017

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About oncosil™

Oncosil Medical Limited (OSL) has developed a new technology – Oncosil™ comprised of Phosphorous-32 Microparticles and Diluent. OncoSil™ is an active implantable (radiological) medical device intended for use in brachytherapy, where cancer is treated by the insertion of radioactive implants directly into the cancerous tissue.

United States

MD Anderson Cancer Center *lead study centre

John Hopkins University Hospital

Moffitt Cancer Center

Northwestern Memorial Hospital

Cedars-Sinai Hospital

United Kingdom

Guy’s and St Thomas’ Hospital *lead study centre

University of Leicester

Hammersmith Hospital

Addenbrookes Hospital

Royal Liverpool Hospital

Belgium

The Institute Jules Bordet *lead study centre

Australia

Monash Health *lead study centre

St. Vincent’s Hospital

Westmead Hospital

Royal North Shore Hospital

Royal Adelaide HospitalFor

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Contents

Making Progress 2

Chairman’s Letter 4

CEO’s Report 5

Directors’ Report 7

Remuneration Report 11

Auditor’s Independence Declaration 19

Statement of Profit or Loss and Other Comprehensive Income 20

Statement of Financial Position 21

Statement of Changes in Equity 22

Statement of Cash Flows 23

Notes to the Financial Statements 24

Directors’ Declaration 46

Independent Auditor’s Report 47

Shareholder Information 50

Corporate Directory 51

Dedicated to transforming the prognosis.

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MAking Progress

2017 has been a year of significant achievements.

29 July, 2016OncoSil Medical receives IDE approval from the US FDA to conduct a clinical study

8 February, 2017MHRA approves commencement of pancreatic clinical study programme in UK

28 November, 2016Lead trial sites confirmed for pancreatic clinical study programme in US, UK and Australia

28 February, 2017Dr Martin Cross appointed Non-Executive Director

27 March, 2017First subject enrolled for global pancreatic cancer trial by Monash Medical Centre, Melbourne

OncoSil Medical Annual Report 2017

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14 April, 2017IRB approval received from MD Anderson Cancer Center

31 March, 2017UK Central Ethics approval received

24 April, 2017First patient implanted with OncoSil™ device at Monash Medical Centre, Melbourne

3 May, 2017Dr Chris Roberts

AO, appointed as OncoSil Chair

10 May, 2017Second patient

enrolled at Monash Medical Centre,

Melbourne

20 April, 2017Independent pharmaceutical company Specialised Therapeutics Australia (STA) provision of chemotherapy Nab-Paclitaxel (Abraxane)

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Chairman’s LETTEr

Dear Shareholder,

On behalf of the OncoSil Medical Board, and as your newly appointed Chairman, I am pleased to present our 2016-2017 Annual Report to you.

The past year has been an important one for the company, with steady progress made in our global pancreatic cancer study. We are pleased to have made significant strides in advancing OncoSil™ technology toward commercialisation, and are encouraged by the engagement to date by participant trial sites, practitioners, as well as industry partners who have contributed their support.

My career in the medical innovations space has been defined by working with technologies that make a valuable difference in patient’s lives, ensuring wide impact through global commercialisation. Similar to other companies I have led, I am incredibly excited by the potential of OncoSil Medical as it progresses towards achieving CE Marking and other regulatory approvals in the future.

Pancreatic cancer is a target of significant unmet need, with a prognosis that is typically discouraging, even with the aid of targeted therapy. Across the markets of our intended approvals, there are on average 85,000 new cases of pancreatic cancer in the EU each year, 45,000 in the US, and 3,350 in Australia. Current treatment options are limited for patients, and this reality drives our company’s goal of delivering targeted therapy directly to tumours to improve patients’ quality of life and aid in the restoration of their health.

In February, the British Standards Institution (BSI) indicated that certification will be contingent on the provision of supplemental data from 20 patients involved in our global trial; this is consistent with the compulsory data requested from the FDA.

Since then we have made solid progress with numerous ethics approvals in our global study, activation of sites across Australia, UK and US, recruitment of patients, and implantation procedures successfully completed.

The year ahead will be pivotal for OncoSil Medical, and I am confident in the ability of our management team to deliver on impending milestones. On behalf of the Board, I would like to thank our Chief Executive Officer, Daniel Kenny, and the entire OncoSil Medical team for their contributions. I would also like to thank our shareholders for their continued support.

Lastly, I would also like extend my appreciation to the many dedicated practitioners and patients involved in our important global study.

OncoSil™ is a truly innovative device with the potential to transform the treatment of pancreatic cancer. I look forward to the successes of the upcoming year, and continuing our purposeful work to make a positive impact on those affected by cancer.

Sincerely,

Dr Chris Roberts, AO Chairman

OncoSil Medical Annual Report 2017

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CEO’s rEpOrT

OncoSil Medical has progressed significantly over the past year, with key advancements made in our global pancreatic study as we work toward receiving CE Marking and the first commercialisation of our technology.

I am proud to lead a talented management team that are committed to making a difference in the lives of people living with cancer, and have the upmost confidence in the team’s current composition, skills and ability to deliver on all milestones ahead.

In May, we were pleased to announce that Dr Chris Roberts, AO would be stepping into the role of Non-Executive Chairman, extending his involvement in the company’s overall direction. We were also pleased to welcome Dr Martin Cross to our Board as a Non-Executive Director.

Both individuals are highly regarded pharmaceutical executives, and bring valuable industry experience to the OncoSil Medical team at this critical time in the company’s development.

CE mark

In February, BSI indicated OncoSil™ would be approved for CE Marking contingent on supplemental data being provided from 20 patients with locally advanced pancreatic cancer, a condition which is consistent with the request from the US FDA.

This supplemental data will support the existing safety and clinical performance data already reviewed, and we have made steady progress with patient recruitment and activation of multiple global sites to achieve this requirement.

“ I am proud to lead a talented management team that are committed to making a difference in the lives of people living with cancer...”

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Global pancreatic Clinical study programme

It has been a busy 12 months for our team following initiation of our global pancreatic clinical study programme. After announcing participation of multiple renowned cancer centres in our global study, in February, we received first ethics approvals to commence patient recruitment at Monash Health in Melbourne.

By June 30th, a total of 13 subjects had been recruited for the global clinical study in pancreatic cancer out of a total of 20 subjects required to meet the supplemental data request to secure CE Marking. 10 prestigious cancer centres across Australia, UK and the US are now active and recruiting subjects. To date 10 patients have been implanted with the OncoSil™ device.

While recruitment for our study is a complex process that takes time, we are impressed by the efforts of our trial centres and lead investigators thus far. Once enrolment is full, and data is provided, this positions us well to receive CE Marking shortly thereafter.

Financial position

In terms of financial activity, the cash outflow from operations for the year was $6.1m, resulting in a cash balance as at 30 June 2017 of $8.0m.

Given the considerable achievements OncoSil Medical has made over the last year, I am looking forward to the 2017-2018 year ahead for our Company as we continue to advance commercialisation of our important technology.

Yours Sincerely,

Daniel Kenny CEO OncoSil Medical

CEO’s rEpOrT COnTinuEd

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t out under thmine the natu

ion

lating to KMP

e the natureexecutive re

bilities and thwork aligns eis considerees that exec

sonablenessders; gnment of ex

neration Com and executphilosophy i

executive re

hat the rewars a core comowth in sharturn on asseigh calibre e

's Board of Dr of meetings

Full Boardded H

7 7 7 3 2

s held during

016.

een auditede with the re

and responsi

he following ure and amou

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e and amouneward framewhat remuneraexecutive rew

ed to conformcutive rewar

s;

xecutive com

mmittee ('Nives. The peis to attract, m

emuneration

rd frameworkmponent of plreholder weaets as well asexecutives.

6

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7 7 7 3 2

g the time th

d, details thquirements o

bility for plan

main headinunt of remun

nt of remunework is to eation is comward with the

m to the markrd satisfies t

mpensation; a

RC') is reserformance omotivate and

n framework

k is designedlan design; alth, consistins focusing the

he Board') any each direct

NominatRemuneratioAttended

1 1 1 1 -

he director h

he key manof the Corpo

nning, directi

gs: neration

eration nsure the re

mpetitive in ae achievemeket best practhe following

and

ponsible forof the Groupd retain high

that is mar

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ng of dividene executive o

nd of each Btor were:

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eld office or

nagement prations Act 2

ng and cont

emuneration ttracting, ret

ent of strategctice for the dg key criteri

r determininp depends on

performance

rket competi

shareholders

nds and growon key non-f

Board commi

e Audit an Attend

1 1 1 1 -

r was a mem

ersonnel ('K2001 and its

rolling the ac

package prtaining and mgic objectivesdelivery of rea for good

g and revien the qualitye and high qu

tive and com

' interests by

wth in share financial drive

ittee held du

nd Risk Comed H

2 2 2 -1

mber of the

KMP') remunRegulations.

ctivities of th

operly reflecmotivating pes and the creeward. The Breward gove

ewing remuny of its directuality person

mplementary

y:

price, and deers of value;

uring the

mmittee Held

2 2 2 -1

relevant

neration .

e entity,

cts each eople of eation of Board of ernance

neration tors and nnel.

y to the

eliveringand

remuneration report

11

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per

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Additi● r

b● a● l● e In accremun Non-eFees directoindepewith thcompahis ow Non-ebe gra ASX meetinshare ExecuThe Ghas bo The e● b● s● s● o The c StructExecuindividindivid Fixed NRC remun Execubenefoptima The sof exe('KPI'sachievprovidof app

Sil Medical tors' report ne 2017

onally, the rerewarding ebenchmarks;aligning the iinking rewarensuring tota

cordance witneration is se

executive direand payme

ors' fees andendent remuhe market. Tarative roles

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ectors remunents to non-d payments uneration coThe chairmans in the extertion.

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also entitled teir interests w

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nd reward fratary benefits ncentives

as superann

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ance executal performan

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nce, the stru

ect the demby the NRC.-executive dindependentan is not pre

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ve directors' Annual Ge

director's fee

position and r

s four compo

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tal remunera

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annuation anance, the ove

r base emoent plans. It r the Group.

to align the tes based on d other KMPsures. The Gically the inc

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leave

ation.

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targets of thespecific ann

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ts by: t targets se

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responsibilitiemay, from tims and payme

es of other nodiscussions

ation guarant

on be determng held on o non-execut

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s with remunt with remun

etary benefitmance of the

variety of fothat the man

e business unual targets ntitled to anns to emphasf incentive p

et by refere

director and

es of their me to time, ents are appon-executive

s relating to t

tee contribut

mined period26 Novembetive directors

el and mix of

neration andneration and

s, are reviewGroup and

orms includinner of paym

nits with the and key pernual bonuseise payment

payments bas

ence to app

d executive

role. Non-exreceive advipropriate ande directors bathe determin

tion. They m

dically by a er 2015, whs of $500,000

remuneratio

d terms stipu terms stipu

wed annuallycomparable

ing cash anment chosen

performancerformance ines payable ut for results sed on achie

propriate

director

xecutive ice from d in line ased on

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may also

general here the 0.

on which

ulated in ulated in

y by the e market

d fringe n will be

e hurdle dicators

upon the through

evement

remuneration report continueD

OncoSil Medical Annual Report 2017

12

For

per

sona

l use

onl

y

OncoDirect30 Ju

The loto exeSharevaryinregulaexecu ConsoRemuincentbonusdetails Use oDuring VotingAt theThe C Detail AmouThe K● M Detail

2017 Non-EDirectDr Ch(chairDr RoDr MaMr MaRoge ExecuDirectMr Da OtherManaPersoMr ToMilice

Sil Medical tors' report ne 2017

ong-term inceecutives in oe Plan. Theseng from threeatory and cliutives during

olidated entituneration fortive paymens and incents of the earn

of remuneratig the financia

g and commee 2016 AGMCompany did

ls of remune

unts of remunKMP of the GMr Tom Milic

s of the remu

Executive tors:

hris Roberts rman) * oger Aston artin Cross **artin rs ***

utive tors: aniel Kenny

r Key agement onnel: om evic

Ltd

entives (‘LTIorder for thee share will ve to five yearnical measuthe year end

ty performanr certain indts are depentive paymentings and tota

ion consultanal year ende

ents made a, less than 2not receive

eration

neration Group consistcevic - Chief

uneration of

S Cash salar

and fees $

80,000

102,740* 25,57

26,255

410,000

254,300

898,866

’) include lone executive tvest upon sars. These KP

ures. The NRded 30 June

nce and link tividuals is dndent on dets are at theal shareholde

nts d 30 June 20

t the Compa2% voted agany specific

ted of the dirFinancial Of

KMP of the

Short-term be

ry

Cash bonus $

0

0 1

5

0 143,50

0

47,706 191,20

ng service leato subscribe atisfaction of PI's include, RC reviewed2017.

to remuneratdirectly linkedfined earnin

e discretion ers return for

017, the Gro

any's 2016 Anainst the adfeedback at

rectors of Onfficer and Co

Group are se

enefits

Non- moneta $

-

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00

00

00

8

ave and shafor ordinary

f long-term Kbut are not l

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tion d to the pergs per shareof the NRCr the last five

up did not en

nnual Generoption of thethe AGM re

ncoSil Medicampany Secr

et out in the f

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benef

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$

-- 9,- 2,

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- 38,

- 24,- 76,

re-based payy shares in tKPI's as agrelimited to, an

erm equity-lin

rformance oe targets be. Refer to th

e years.

ngage the us

ral Meeting ('e remuneratigarding its re

al Ltd and theetary

following tab

t-ment fits

Long-tbene

er- Lon

servtion leav

$

-760 429

634

950

159 932

yments. Limthe Compan

eed with the en increase innked perform

f the Groupeing met. Thehe section 'A

se of remune

'AGM') on report foremuneration

e following p

bles.

term efits Shar

ng ice

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ve opti$

---

- 5

-

-- 5

ited recourseny under theexecutive, m

n shareholdemance incen

p. A portion e remaining Additional inf

eration consu

r the year en practices.

persons:

re-based pay

uity-tled

Eqse

ons sh$

-

20- 3-

6,261

22

- 47

-

86,261 1,03

e loans are ae OncoSil Emmeasured ove

rs’ value or tives specific

of cash bonportion of th

formation' be

ultants.

nded 30 Jun

yments

quity-ettled ares T$

08,000 231,614 1

-

29,297 3

79,200 1,0

85,029 433,140 2,2

awarded mployee er terms meeting cally for

nus and he cash elow for

ne 2016.

Total

$

288,000 144,114 28,000

313,447

071,650

411,188 256,399

13

For

per

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OncoDirect30 Ju

* T** A*** T

L Threrethe va

2016 Non-EDirectDr Ro(chairMr MaRogeDr Ch** ExecuDirectMr Da OtherManaPersoMr ToMilice * A** T

L The p Name Non-EDr RoMr MaDr ChDr Ma ExecuMr Da OtherPersoMr To

Sil Medical tors' report ne 2017

The remunerAppointed KMThe remunerLtd, until his

e were no shalue of the sh

Executive tors:

oger Aston rman) artin rs **

hris Roberts

utive tors: aniel Kenny

r Key agement onnel: om evic *

Appointed KMThe remunerLtd. The rem

roportion of

e

Executive Diroger Aston artin Rogers hris Roberts artin Cross

utive Directoaniel Kenny

r Key Managonnel: om Milicevic

Ltd

ration paymeMP during thration paymeresignation a

hares grantehares amortis

S Cash salar

and fees $

102,740

79,992

35,19

319,078

170,125

707,126

MP during thration payme

muneration pa

remuneratio

rectors:

ors:

gement

ents to Dr Chhe financial yents to Mr Mas KMP.

ed during thesed during th

Short-term be

ry

Cash bonus $

0

2

1

8 75,00

5

30,176 105,17

he financial yents to Mr Mayments to D

n linked to pe

Fixe 2017 1

hris Roberts wyear. Martin Rogers

e year underhe year unde

enefits

Non- moneta $

-

-

-

00

70

70

year. Martin RogersDr Chris Robe

erformance a

ed remunera7 2

78% 9%

28% 100%

42%

67%

9

were made t

s were made

r the Group'ser the Limited

Postemploym

benef

Supeary annuat

$

- 9,

- 7,

-

- 30,

- 16,- 63,

s were madeerts were ma

and the fixed

ation 2016

77% 36% 55%

-

54%

59%

to his directo

e to his direc

s Employee d Recourse L

t-ment fits

Long-tbene

er- Lon

servtion leav

$

760

392

-

312

162 626

e to his direcade to his dir

d proportion a

At risk2017

-- - -

13%

12%

or-related ent

ctor-related e

Share Plan Loan for eac

term efits Shar

ng ice

Equsett

ve opti$

-

- 7

-

-

-- 7

ctor-related erector-related

are as follow

k - STI 2016

- - - -

11%

10%

tity, Robertsp

entity, Struct

and the valuh KMP.

re-based pay

uity-tled

Eqse

ons sh$

-

3

4,135

7

-

2

- 22

-

94,135 46

entity, Structd entity, Rob

ws:

A 2017

%

%

plan Pty Ltd.

ture Investme

ue above rep

yments

quity-ettled ares T$

33,332 1

78,991 2

29,063

28,688 6

96,667 366,741 1,4

ture Investmeertsplan Pty

At risk - LTI7 20

22% 91% 72%

-

45%

21%

ents Pty

presents

Total

$

145,832

240,510

64,254

653,078

313,124 416,798

ents Pty Ltd.

016

23% 64% 45%

-

35%

31%

remuneration report continueD

OncoSil Medical Annual Report 2017

14

For

per

sona

l use

onl

y

OncoDirect30 Ju

The p Name ExecuMr Da OtherMr To ServicRemuDetail NameTitle: AgreeTerm Detai

NameTitle: AgreeTerm Detai

Key m Share Issue Thereended

Sil Medical tors' report ne 2017

roportion of t

e

utive Directoaniel Kenny

r Key Managom Milicevic

ce agreemeuneration ans of these ag

e:

ement commof agreemen

ls:

e:

ement commof agreemen

ls:

management

e-based com

of shares e were no shd 30 June 20

Ltd

the cash bon

ors:

gement Perso

ents d other termgreements a

menced: nt:

menced: nt:

personnel h

mpensation

hares issued 017.

nus paid/pay

onnel:

ms of emplore as follows

Danie Chief 5 Jan No fix Basereviebonuis a rHe ishare

Tom Chief 22 O No fix Basereviebonuis a rHe ishare

ave no entitl

to directors

yable or forfe

oyment for ks:

el Kenny f Executive Onuary 2015 xed term

e salary for thewed annualus up to 50%restraint peris eligible teholders.

Milicevic f Financial O

October 2015xed term

e salary for thewed annuallus up to 25%restraint peris eligible teholders.

lement to ter

and other k

10

ited is as fol

C

key managem

Officer and M

he year endinly by the NR of salary suiod of six moto participat

Officer and Co

he year endiny by the NR of salary suiod of six moto participat

rmination pay

key managem

lows:

Cash bonus 2017

70%

75%

ment person

Managing Dir

ng 30 June 2RC, six monubject to achionths endinge in the lo

ompany Sec

ng 30 June 2RC, three moubject to achionths endinge in the lo

yments in the

ment personn

paid/payable2016

75%

70%

nnel are form

rector

2017 of $410nths terminatevement of g on the datong term in

cretary

2017 of $254onths termina

evement of g on the datong term in

e event of re

nel as part o

e Cash 2017

%

%

malised in s

0,000 plus sution notice bKPI's as set e of termina

ncentive pla

4,300 plus suation notice bKPI's as set e of termina

ncentive pla

moval for mi

of compensa

h bonus forfe7 20

30%

25%

service agre

uperannuatioby either par

by the Boardation of empln as appro

uperannuatioby either parby the Board

ation of empln as appro

isconduct.

ation during t

eited 016

25%

30%

ements.

on, to berty, cash d. Thereoyment.

oved by

on, to be rty, cashd. Thereoyment.

oved by

the year

15

For

per

sona

l use

onl

y

OncoDirect30 Ju

EmploCertaiAccouduring Termsthe cu Name Danie Roge Chris Tom M The npart o Name Mr Ma AdditThe e ReveLoss The fa ShareBasic

Sil Medical tors' report ne 2017

oyee Share Pin employeeunting Standg the current

s and conditiurrent financi

e

el Kenny

r Aston

Roberts Milicevic

number of opf compensat

e

artin Rogers

tional informarnings of th

nue/income after income

actors that ar

e price at finac earnings pe

Ltd

Plan ('ESP') es have beendards, these

financial yea

ions of shareal year:

Number shares granted 14,000,0 12,000,0 1,000,0 500,0 500,0 10,000,0 5,000,0

ptions over otion during th

mation he Group for

e tax

re considere

ancial year eer share (cen

n issued limshares are

ar.

e based pay

of s d Grant d

000 10/05/2000 28/11/2000 28/11/2000 28/11/2000 28/11/2000 10/05/2000 13/01/2

ordinary sharhe year ende

the five year

d to affect to

end ($) nts per share

ited recoursaccounted f

ment arrang

date

2016 2014 2014 2014 2014 2016 2016

res vested aed 30 June 2

rs to 30 June

2

(8

otal sharehold

2

0e) (0

11

e loans to afor in a simi

ements affec

Expiry date 10/05/202128/11/201728/11/201731/12/201928/11/201610/05/202113/01/2019

and exercised017 are set o

e 2017 are su

2013 $ 87,711

879,168)

ders return (

2013

0.04 0.70)

acquire shareilar manner

cting the rem

d by directorout below:

ummarised b

2014 $

619,848(6,864,829)

'TSR') are su

2014

0.10 (1.40)

es in the Coas options.

muneration o

rs and other

Number ofoptionsgranted

during theyear 2017

below:

2015 $

3,028,01(2,879,03

ummarised b

2015

0.10 (0.81)

ompany. In aThere were

of key manag

Exercise $ $ $ $ $ $ $

r key manage

f Numbe option exercis

e during t year 2017

- 19,000

2016 $

4 4,14131) (4,768

below:

2016 0.14 (1.23

accordance we no shares

gement pers

Fair per

price at gra

$0.22 $0.13 $0.13 $0.18 $0.13 $0.22 $0.13

ement perso

r of Valns optsed exerthe durinr ye7 20

0,000 9

6 20

,691 3,78,598) (7,0

6 20

0.3) (1

with the granted

onnel in

value share

ant date $0.104 $0.047 $0.047 $0.056 $0.059 $0.104 $0.081

onnel as

ue of tions rcised ng the ear 017

950,000

017 $

721,582016,079)

017

.10 .49)

remuneration report continueD

OncoSil Medical Annual Report 2017

16

For

per

sona

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OncoDirect30 Ju

Addit ShareThe nmana OrdinDr RoMr DaMr MaDr ChDr MaMr To * D

n OptionThe nmemb OptioMr Ma This c ShareThere ShareThe foof this Date 12 Ma IndemThe Cfor wh Duringthe Codisclo IndemThe CComp DuringComp

Sil Medical tors' report ne 2017

tional disclo

eholding number of sgement pers

nary shares oger Aston aniel Kenny artin Rogers hris Roberts artin Cross om Milicevic

Disposals/othnecessarily a

n holding number of opbers of key m

ns over ordinartin Rogers

concludes t

es under opte were no uni

es issued onollowing ordis report on th

options exer

ay 2017

mnity and inCompany hashich they may

g the financiompany agasure of the n

mnity and inCompany haspany or any r

g the financpany or any r

Ltd

osures relati

shares in thsonnel of the

*

her - represeactual dispos

ptions over omanagement

nary shares

the remuner

tion issued ordina

n the exercisnary shares

he exercise o

rcised

surance of s indemnifiedy be held pe

al year, the ainst a liabilitnature of the

surance of s not, duringrelated entity

cial year, therelated entity

ing to KMP

e Company Group, inclu

ents the holdsed.

ordinary shapersonnel o

ration report

ary shares o

se of optionof OncoSil M

of options gra

officers d the directorsonally liabl

Company paty to the exteliability and

auditor g or since they against a lia

e Company y.

held duringuding their pe

Balathe s

the

13,026,010,310,0

5,064,3

ding at the t

ares in the Cof the Group,

Balathe s

the

19,019,0

t, which has

of OncoSil Me

ns Medical Ltd wanted:

ors and execle, except wh

aid a premiuent permittedthe amount o

e end of the ability incurre

has not pai

12

g the financersonally rela

ance at Rstart of a

e year rem

016,547 000,000 312,532 000,000

-000,000 329,079

time of ceas

Company heincluding the

ance at start of

e year

000,000 000,000

s been audit

edical Ltd un

were issued

cutives for cohere there is

um in respecd by the Corof the premiu

financial yeaed by the aud

d a premium

cial year by ated parties,

Received as part of muneration

-------

sing to be a

eld during their personall

Granted

--

ted.

nder option o

during the y

osts incurreda lack of go

ct of a contrarporations Aum.

ar, indemnifiditor.

m in respect

each direct is set out be

Additions

1,000,0055,00

1,055,00

KMP within

e financial yy related par

Exercised

(19,000,00(19,000,00

outstanding a

year ended 3

, in their capod faith.

act to insurect 2001. The

ed or agreed

t of a contra

tor and otheelow:

Disposa othe

- - - (10,312-

00 00 00 (10,312

the consolid

year by eachrties, is set o

Expire forfeite

othe

00) 00)

at the date of

30 June 2017

Exerci price $

pacity as a d

the directore contract of

d to indemni

act to insure

er members

Balaals/ the er the

- 13,0- 26,0

,532)- 10,0- 1,0- 5,0

,532) 55,0

dated entity

h director anout below:

ed/ Balaed/ the er the

--

f this report.

7 and up to t

se Nume shares

$0.05 19,0

irector or ex

rs and execuf insurance p

ify the audito

e the audito

s of key

ance at end of year

016,547 000,000

- 000,000 000,000 055,000 071,547

and not

nd other

ance at end of year

- -

the date

mber of s issued

000,000

xecutive,

utives of prohibits

or of the

r of the

17

For

per

sona

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onl

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OncoDirect30 Ju

ProceNo pebehalfrespo Non-aThere OfficeThere AuditA copimmed AuditCrowe This r2001. On be

_____Dr ChNon-E 24 AuSydne

Sil Medical tors' report ne 2017

eedings on berson has apf of the Comnsibility on b

audit servicee were no non

ers of the Coe are no office

tor's indepepy of the auddiately after t

tor e Horwath Sy

report is ma

ehalf of the d

__________hris Roberts Executive Ch

ugust 2017 ey

Ltd

behalf of thepplied to thempany, or tobehalf of the C

es n-audit servi

ompany whers of the Co

ndence decditor's indepethis directors

ydney contin

de in accord

irectors

___________

hairman

e Company e Court undeo intervene inCompany fo

ces provided

o are formeompany who

claration endence decs' report.

nues in office

dance with a

____

er section 23n any procer all or part o

d during the f

er partners o are former p

claration as r

e in accordan

a resolution

13

37 of the Coeedings to wof those proc

financial yea

of Crowe Hopartners of C

required und

nce with sect

of directors,

orporations Awhich the Coceedings.

ar by the aud

orwath SydnCrowe Horwa

er section 3

tion 327 of th

, pursuant to

Act 2001 forompany is a

itor.

neyath Sydney.

07C of the C

he Corporatio

o section 29

r leave to brparty for the

Corporations

ons Act 2001

98(2)(a) of th

ring proceede purpose o

s Act 2001 is

1.

he Corporati

dings on of taking

s set out

ons Act

Directors’ report

OncoSil Medical Annual Report 2017

18

For

per

sona

l use

onl

y

Crowe Horwath Sydney is a member of Crowe Horwath International, a Swiss verein. Each member of Crowe Horwath is a separate and independent legal entity. Liability limited by a scheme approved under Professional Standards Legislation other than for the acts or omissions of financial services licensees.

14

Crowe Horwath Sydney ABN 97 895 683 573 Member Crowe Horwath International

Audit and Assurance Services

Level 15 1 O'Connell Street Sydney NSW 2000 Australia

Tel +61 2 9262 2155 Fax +61 2 9262 2190 www.crowehorwath.com.au

24 August 2017 The Board of Directors OncoSil Medical Ltd Suite 402, Level 4 50 Berry Street, NORTH SYDNEY NSW 2060

Dear Board Members

OncoSil Medical Ltd In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following declaration of independence to the Directors of OncoSil Medical Ltd. As lead audit partner for the audit of the financial report of OncoSil Medical Ltd for the financial year ended 30 June 2017, I declare that to the best of my knowledge and belief, that there have been no contraventions of:

(i) the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and

(ii) any applicable code of professional conduct in relation to the audit. Yours sincerely CROWE HORWATH SYDNEY

JOHN HAYDON Senior Partner

auDitor’s inDepenDence Declaration

19

For

per

sona

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onl

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OncoStatemFor th

ReveOther ExpeEmploReseaOccuConsNet gNet loShareOther Loss Incom Loss Onco Other ItemsForeig Other Total Medic BasicDilute

Sil Medical ment of prohe year ende

The above

nue r income

nses oyee benefitsarch and devpancy expenulting, financain/(loss)on

oss on dispose-based paymr administrati

before inco

me tax expen

after incomoSil Medical

r comprehe

s that may begn currency

r comprehen

comprehencal Ltd

c earnings peed earnings p

Ltd ofit or loss aed 30 June 2

e statement o

s expense velopment exnses ce and legal financial asssal of assetsments ive expenses

ome tax exp

nse

me tax expenLtd

nsive incom

e reclassifiedtranslation

sive income

nsive incom

er share per share

nd other co2017

of profit or los

xpenses

expenses sets at fair vas

s

ense

nse for the y

me

d subsequent

for the year,

me for the ye

omprehensiv

ss and otheracc

alue through

year attribut

tly to profit or

, net of tax

ar attributab

ve income

r comprehenscompanying

15

profit or loss

table to the

r loss

ble to the ow

sive income notes

s

owners of

wners of On

Note

should be re

5

6

7

ncoSil

26 26

Ce 2017

$

ead in conjun

3,721

(4,461 (3,955 (206 (510 166 (94 (1,389 (285

(7,016

(7,016

(7,015

Cents ( (

onsolidated7 20

nction with th

,582 4,1

,551) (3,25,876) (3,36,265) (3,797) (7

6,261 (,218) (

9,772) (85,443) (3

6,079) (4,7

-

6,079) (4,7

460 (

460 (

5,619) (4,8

s Ce

(1.49)(1.49)

d016$

he

141,691

267,204)341,008)366,259)778,843)(26,918)(10,635)808,703)310,719)

768,598)

-

768,598)

(79,148)

(79,148)

847,746)

ents

(1.23)(1.23)

statement of profit or loss anD other comprehensive income

OncoSil Medical Annual Report 2017

20

For

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OncoStatemAs at

Asse CurreCash TradeFinanOtherTotal Non-cPlant Total Total Liabi CurreTradeEmploTotal Total Net a EquitIssueReseAccum Total

Sil Medical ment of fina30 June 20

The ab

ts

ent assets and cash eq

e and other rencial assets ar current asse

current asseand equipmnon-current

assets

lities

ent liabilitiese and other poyee benefitscurrent liabil

liabilities

assets

ty d capital rves mulated loss

equity

Ltd ancial positi17

bove stateme

quivalents eceivables at fair value t

ets

ets ent assets

s payables s lities

ses

on

ent of financi

through profi

ial position s

t or loss

should be rea16

ad in conjunc

Note

ction with the

8910 11

12

13 14

Ce 2017

$

e accompany

8,000 3,529 159 11,689 115 115 11,804

1,524 145 1,670 1,670

10,134

36,644 3,986 (30,496 10,134

onsolidated7 20

ying notes

0,618 9,79,388 2,6

- 3,29,399 19,405 15,8

5,471 5,471

4,876 15,8

4,275 95,792 10,067 1,0

0,067 1,0

4,809 14,8

4,596 35,66,430 2,5,217) (23,4

4,809 14,8

d016$

780,326 627,943 258,787 138,199 805,255

91,713 91,713

896,968

967,886 118,426 086,312

086,312

810,656

694,596 596,198 480,138)

810,656

statement of financial position

21

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OncoStatemFor th

Cons Balan Loss Other Total TransContrShare Balan Cons Balan Loss Other Total TransContrShare Balan

Sil Medical ment of chahe year ende

The ab

solidated

nce at 1 July

after incomer comprehen

comprehens

sactions withributions of ee-based paym

nce at 30 Jun

solidated

nce at 1 July

after incomer comprehen

comprehens

sactions withributions of ee-based paym

nce at 30 Jun

Ltd anges in equed 30 June 2

bove stateme

2015

e tax expensesive income

sive income f

owners in thequity, net of ments (note

ne 2016

2016

e tax expensesive income

sive income f

owners in thequity, net of ments (note

ne 2017

uity 2017

ent of change

e for the yeafor the year,

for the year

heir capacity transaction c27)

e for the yeafor the year,

for the year

heir capacity transaction c27)

es in equity s

ar , net of tax

y as owners:costs (note 1

ar , net of tax

y as owners:costs (note 1

should be rea17

2

13) 1

3

3

13)

3

ad in conjunc

Issuedcapital

$

23,806,347

--

-

11,888,249 -

35,694,596

Issuedcapital

$

35,694,596

--

-

950,000 -

36,644,596

ction with the

Reserves$

1,866,64

(79,14

(79,14

808,70

2,596,19

Reserves$

2,596,19

46

46

1,389,77

3,986,43

e accompany

Accumus losse

$

43 (18,711

- (4,76848)

48) (4,768

- 03

98 (23,480

Accumus losse

$

98 (23,480

- (7,01660

60 (7,016

- 72

30 (30,496

ying notes

latedTotales

,540) 6,9

8,598) (4,7- (

8,598) (4,8

- 11,8- 8

,138) 14,8

latedTotales

,138) 14,8

6,079) (7,0-

6,079) (7,0

- 9- 1,3

6,217) 10,1

equity$

961,450

768,598)(79,148)

847,746)

888,249 808,703

810,656

equity$

810,656

016,079)460

015,619)

950,000 389,772

134,809

statement of changes in equity

OncoSil Medical Annual Report 2017

22

For

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OncoStatemFor th

CashPaymDivideIntereResea Net ca CashPaymProce Net ca CashProceShare Net ca Net inCash Cash

Sil Medical ment of cashe year ende

The

flows fromments to suppends receiveest received arch and dev

ash used in o

flows fromments for propeeds from dis

ash from/(us

flows fromeeds from isse issue trans

ash from fina

ncrease/(decand cash eq

and cash eq

Ltd sh flows ed 30 June 2

e above state

operating apliers and emed

velopment ta

operating ac

investing aperty, plant asposal of liste

sed in) invest

financing asue of sharesaction costs

ancing activit

crease) in casquivalents at

quivalents at

2017

ement of cas

activities mployees

ax incentive

ctivities

activities and equipmeed securities

ting activities

activities s

ties

sh and cash the beginnin

the end of th

sh flows shou

ent s

s

equivalentsng of the fina

he financial y

uld be read i18

ancial year

year

in conjunction

Note

n with the ac

25

13 13

8

Ce 2017

$

ccompanying

(8,648 17 223 2,297 (6,109

(52 3,433 3,380

950 950

(1,779 9,780 8,000

onsolidated7 20

g notes

8,615) (6,37,937 13,387 17,446 1,5

9,845) (4,5

,890) (3,027

0,137 (

0,000 12,3- (5

0,000 11,8

9,708) 7,20,326 2,5

0,618 9,7

d016$

378,031)112,012 158,007 535,444

572,568)

(57,981)-

(57,981)

390,000 501,751)

888,249

257,700 522,626

780,326

statement of cash flows

23

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OncoNotes30 Ju

Note The fientity'prese OncoSoffice Suite 50 BeNorth A desnot pa The fidirecto Note 2 The pnotes New oThe GAccouAccouthe Gr Any n BasisTheseInterpapproStand HistorThe fithroug CriticaThe pmanahigherstatem ParenIn acSuppl PrincThe c30 Juare re

Sil Medical s to the finanne 2017

1. General i

nancial state) and the ented in Austr

Sil Medical Land principa

402, Level 4erry Street Sydney NSW

cription of thart of the fina

nancial stateors have the

2. Significan

principal accoor below. Th

or amendedGroup has aunting Standunting Standroup.

ew or amend

s of preparate general puretations isspriate for fo

dards as issu

rical cost connancial stategh profit or lo

al accountingpreparation ogement to er degree of ments, are di

nt entity infocordance wementary inf

iples of conconsolidated ne 2017 and

eferred to in t

Ltd ncial statem

nformation

ements coventities it conralian dollars

Ltd is a listeal place of bu

4

W 2060

he nature of tancial statem

ements were power to am

nt accountin

ounting polichese policies

d Accountingdopted all o

dards Boardards and Int

ded Account

tion rpose financsued by ther-profit oriened by the Int

nvention ements haveoss.

g estimates of the financ

exercise its jujudgement sclosed in no

ormation with the Corformation ab

nsolidation financial sta

d the results these financi

ments

r OncoSil Mentrolled at ths, which is O

ed public comusiness is:

the Group's oments.

e authorised mend and rei

ng policies

cies adopted s have been

g Standardsof the new od ('AASB') tterpretations

ting Standard

cial statemene Australian nted entities.ternational A

e been prepa

cial statemeudgement in or complexitote 3.

porations About the pare

atements incoof all subsidal statement

edical Ltd ashe end of, oncoSil Medic

mpany limite

operations a

for issue, inssue the fina

in the prepaconsistently

s and Interpor amended hat are ma did not hav

ds or Interpre

nts have beeAccounting

These finanAccounting St

ared under th

ents requiresthe process

ty, or areas

ct 2001, thent entity is d

orporate the diaries for thets as the 'Gro

19

s a Group conor during, thcal Ltd's func

ed by shares

nd its princip

n accordanceancial statem

aration of theapplied to a

retations adAccounting ndatory for

ve any signif

etations that

n prepared ig Standards ncial statemtandards Bo

he historical

s the use ofs of applying where assu

ese financiaisclosed in n

assets and e year then eoup'.

nsisting of Oe half-year

ctional and p

s, incorporate

pal activities

e with a resoments.

e financial stall the years p

doptedStandards athe current

ficant impact

are not yet m

n accordancBoard ('AA

ents also coard ('IASB').

cost conven

f certain critg the Group'sumptions an

al statementnote 23.

liabilities of ended. Onco

OncoSil Medic(the 'Group'resentation c

ed and dom

are included

olution of dire

atements arepresented, un

and Interprett reporting pt on the fina

mandatory h

ce with AustrASB') and tomply with In

ntion, except

tical accouns accountingnd estimates

ts present t

all subsidiaroSil Medical

cal Ltd (the '). The financurrency.

iciled in Aus

d in the direc

ectors, on 24

e set out eithnless otherw

tations issueperiod. The ncial perform

ave not been

ralian Accounhe Corporatnternational

for financial

ting estimatg policies. Ths are signific

the results o

ies of OncoSLtd and its s

Company' orncial stateme

stralia. Its re

ctors' report, w

4 August 20

her in the reswise stated.

ed by the Auadoption o

mance or po

n early adopt

nting Standations Act 20Financial Re

assets at fa

tes. It also rhe areas invcant to the f

of the Grou

Sil Medical Lsubsidiaries t

r 'parent ents are

gistered

which is

017. The

spective

ustralian of these sition of

ted.

ards and 001, as eporting

air value

requires olving a financial

up only.

Ltd as at together

notes to the financial statements

OncoSil Medical Annual Report 2017

24

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OncoNotes30 Ju

Note 2 Subsiexposthrougtransf IntercUnreaAccouby the The awithoutransfattribu Wherecontrorecogor loss ForeigThe ficurren ForeigForeigtransatranslarecog ForeigThe areportexchadiffere The fo CurreAssets An asGroupafter ta liabi A liabprimaunconare cla Deferr

Sil Medical s to the finanne 2017

2. Significan

diaries are ased to, or hasgh its power erred to the

ompany tranalised lossesunting policiee Group.

cquisition of ut the loss oerred and t

utable to the

e the Groupolling interesnises the fais in profit or

gn currencyinancial statency.

gn currency tgn currency tactions. Foreation at finannised in prof

gn operationsassets and lting date. Thange rates, wences are rec

oreign curren

ent and non-s and liabiliti

sset is classp's normal opthe reportingility for at lea

bility is classirily for the p

nditional rightassified as n

red tax asset

Ltd ncial statem

nt accountin

all those ents rights to, vto direct theGroup. They

nsactions, ba are also elim

es of subsidi

subsidiariesof control, ishe book vaparent.

p loses contt in the subsr value of theloss.

y translationements are

transactions transactions eign exchanncial year-enfit or loss.

s liabilities of he revenues which approxcognised in o

ncy reserve i

-current clases are prese

ified as currperating cycl period; or th

ast 12 months

fied as currepurpose of tt to defer the

non-current.

ts and liabilit

ments

ng policies (

tities over wvariable reture activities ofy are de-cons

alances and minated unlearies have b

s is accountes accounted lue of the s

trol over a sidiary togethe considerat

n presented in

are translatnge gains and exchange

foreign operand expens

ximate the raother compre

s recognised

ssification ented in the s

rent when: ite; it is held phe asset is cs after the re

ent when: it trading; it is e settlement

ties are alwa

(continued)

which the Grrns from its if the entity. Ssolidated from

unrealised gess the transbeen change

ed for using tfor as an e

share of the

subsidiary, her with anytion received

n Australian

ed into Austand losses re rates of m

rations are es of foreigntes at the daehensive inc

d in profit or l

statement of

t is either exprimarily for tcash or casheporting perio

is either expdue to be of the liabilit

ays classified

20

roup has convolvement Subsidiariesm the date th

gains on trasaction provided where nec

he acquisitioequity transae non-contro

it derecogniy cumulative and the fair

dollars, whic

ralian dollarsresulting froonetary asse

translated inn operations ates of the traome through

loss when th

financial pos

xpected to bthe purpose equivalent uod. All other

pected to be settled withity for at leas

d as non-curr

ntrol. The Gwith the ent are fully cohat control ce

nsactions bedes evidencecessary to e

on method ofaction, whereolling interes

ises the asstranslation d

r value of any

ch is OncoS

s using the em the settleets and liabi

nto Australiaare translat

ansactions, fh the foreign

he foreign op

sition based

be realised oof trading; it

unless restricassets are c

settled in thn 12 montht 12 months

rent.

Group controity and has tnsolidated freases.

etween entitie of the impa

ensure consis

f accounting.e the differe

st acquired i

sets includindifferences ry investment

Sil Medical L

exchange ratement of sulities denom

an dollars used into Austfor the periodcurrency res

eration or ne

on current a

or intended t is expectedcted from be

classified as n

he Group's ns after the after the rep

ols an entity the ability to rom the date

ies in the Grairment of thstency with t

A change inence betweeis recognise

ng goodwill, recognised int retained tog

Ltd's function

tes prevailinguch transact

minated in for

sing the exctralian dollarsd. All resultinserve in equi

et investment

and non-curre

to be sold od to be realiseeing exchangnon-current.

normal operareporting peporting period

when the Gaffect those

e on which co

roup are elimhe asset tranthe policies a

n ownership en the consided directly in

liabilities ann equity. Thegether with a

nal and pres

g at the datetions and frreign currenc

change ratess using the ang foreign exty.

t is disposed

ent classifica

or consumeded within 12 ged or used t

ating cycle; iteriod; or therd. All other l

Group is e returns ontrol is

minated. nsferred. adopted

interest, deration n equity

nd non-e Group any gain

entation

es of the rom the cies are

s at the average xchange

d of.

ation.

d in the months to settle

t is held re is no iabilities

25

For

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OncoNotes30 Ju

Note 2 Plant Plant expen Depreover t Office The redate. An iteGroup LeaseThe drequirand th A distrisks aretains Operabasis ReseaReseaprobasell threliabl Emplo Short-Liabilireport Long-Emploexpecprojecdeparcorpo DefineContri GoodRevenrecoveof the Receirecovefinanc

Sil Medical s to the finanne 2017

2. Significan

and equipmand equipm

nditure that is

eciation is caheir expecte

e equipment

esidual value

em of propertp. Gains and

es determinationres an asseshe arrangem

tinction is maand benefitss substantial

ating lease pover the term

arch and dearch costs able that the

he asset; thely.

oyee benefi

-term employties for wagting date are

-term employoyee benefitscted future pcted unit crertures and perate bonds w

ed contributioibutions to de

ds and Servinues, expenerable from texpense.

vables and erable from,

cial position.

Ltd ncial statem

nt accountin

ment ment is stateds directly attr

alculated on ed useful lives

es, useful liv

ty, plant and losses betw

n of whetherssment of whent conveys

ade betweens incidental tlly all such ri

payments, nem of the leas

evelopment are expenseproject will b Group has

ts

yee benefits ges and sala

measured a

yee benefits s not expecte

payments to dit method. eriods of serwith terms to

on superannefined contri

ces Tax ('GSses and assthe tax autho

payables ar or payable

ments

ng policies (

d at historicaributable to th

a straight-lins as follows:

ves and dep

equipment iween the carr

r an arrangehether the ful

a right to us

n finance leao the ownersks and ben

et of any incse.

costs d in the per

be a successsufficient res

aries and otat the amoun

ed to be settbe made in Consideratio

rvice. Expectmaturity and

nuation expenbution super

ST') and othsets are recoority. In this

re stated incto, the tax a

(continued)

al cost less he acquisitio

ne basis to w

preciation me

s derecognisrying amount

ment is or clfilment of th

se the asset.

ases, which ership of leasefits.

centives rece

riod in whichs consideringsources; and

her employets expected

tled within 12respect of s

on is given tted future pad currency th

nse rannuation p

her similar tognised netcase it is rec

clusive of thauthority is i

21

accumulaten of the item

write off the

ethods are r

sed upon dist and the dis

contains a lee arrangeme

effectively traed assets, a

eived from th

h they are ig its commerd intent to co

ee benefits eto be paid w

2 months of services proto expected ayments are hat match, as

lans are exp

axesof the amou

cognised as

e amount ofincluded in o

d depreciatioms.

net cost of

3-15 ye

reviewed, an

sposal or whposal procee

ase is basedent is depend

ansfer from and operatin

he lessor, are

ncurred. Dercial and tecomplete the d

expected to when the liabi

the reportingovided by em

future wagediscounted

s closely as p

pensed in the

unt of assocpart of the c

f GST receiother receiva

on and impa

each item o

ears

nd adjusted i

en there is neds are taken

d on the subdent on the u

the lessor tog leases, un

e charged to

evelopment chnical feasibdevelopment

be settled wilities are set

g date are mmployees up e and salary using markepossible, the

e period in wh

ciated GST, cost of the ac

vable or payables or othe

airment. Hist

f property, p

if appropriate

no future econ to profit or

bstance of thuse of a spe

o the lessee nder which th

o profit or los

costs are cability; the Grot and its cost

wholly withinttled.

measured as to the repolevels, expe

et yields at th estimated fu

hich they are

unless the Gcquisition of

yable. The ner payables

torical cost i

plant and eq

e, at each re

onomic benefloss.

he arrangemecific asset o

substantiallyhe lessor eff

ss on a stra

apitalised whoup is able tots can be me

n 12 months

the present rting date us

erience of emhe reporting uture cash o

e incurred.

GST incurrethe asset or

net amount in the state

includes

uipment

eporting

fit to the

ment and r assets

y all the fectively

ight-line

hen it is o use or easured

s of the

value of sing the mployee date on utflows.

d is not r as part

of GST ement of

notes to the financial statements continueD

OncoSil Medical Annual Report 2017

26

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OncoNotes30 Ju

Note 2 Cash activit Comm CompCertaiconsis New AAustramandassesare se AASBThis sprevioMeasube mecontraare toinitial incomentity'accouthe enImpairsignifinew dstatemreceivof prinat faceas the AASBThis ssinglethe traexpecimplieprice, perforapproCreditobligasatisfiobligashouldstatembetweto enathose adopt

Sil Medical s to the finanne 2017

2. Significan

flows are pties which are

mitments and

paratives in comparatstency with th

Accounting alian Accouatory, have

ssment of theet out below.

B 9 Financial standard is aous versionsurement'. AAeasured at aactual cash fo be classifierecognition t

me ('OCI'). Fos own credi

unting requirentity. New imrment will becantly since

disclosures. Tments on thvables that dncipal, whiche value. Oth

e group does

B 15 Revenuestandard is ae standard foansfer of procts to be entited) to be iden

adjusted formance obligach if no dist risk will beation would bed when the

ations satisfied be recogniment of finaneen the entityable users tocontracts; athis standar

Ltd ncial statem

nt accountin

presented one recoverabl

d contingenc

ives in the he current pe

Standards nting Standnot been ea

e impact of th

Instruments applicable tos of AASB 9ASB 9 introdamortised colows, which

ed and measto present gor financial it risk to be ements are inmpairment re measured u

initial recogThe Group whe basis thao not carry a in the case er financial a

s not carry th

e from Contrapplicable tor revenue reomised goodtled in exchantified, togetor the time gations on astinct observe presented be satisfied we service haed over time,ised as the pncial positioy's performano understandand any asserd from 1 July

ments

ng policies (

n a gross be from, or pa

ies are disclo

statement oeriod presen

and Interpreards and Inrly adopted hese new or

o annual repo9 and compuces new cla

ost, if it is hearise on spesured at fair ains and losliabilities, thpresented

ntended to mrequirementsunder a 12-mnition in whi

will adopt thisat the main a significant of trade rece

asset classeem at fair va

racts with Cuo annual repecognition. Thds or serviceange for thosther with the value of mo

a basis of reable prices eseparately

when the cuss been prov, an entity woperformancen as a contnce and the d the contracets recognisy 2018. It is n

(continued)

asis. The Gayable to the

osed net of t

of profit or ltation.

etations notnterpretationsby the Grouamended Ac

orting periodpletes the passification a

eld within a becified dates

value throusses on equite standard in OCI (unle

more closely s will use anmonth ECL mch case the

s standard frofinancial as

financing coeivables is ths are not ma

alue.

ustomers porting periodhe core princ

es to customse goods or s

separate peoney excludelative standexist; and reas an expenstomer obtai

vided, typicalould select a

e obligation istract liability,customer's p

cts with custosed from the not expected

22

GST compone tax authorit

he amount o

loss and oth

t yet mandats that havep for the annccounting St

ds beginningproject to reand measurebusiness moand solely pgh profit or ty instrumenrequires theess it wouldalign the accn 'expected method unleslifetime ECLom 1 July 20ssets recogn

omponent anhe transactioaterial to the

ds beginningciple of the s

mers in an amservices. Theerformance oing credit ris-alone sellin

ecognition of nse rather tins control olly for promisan appropriats satisfied. C, a contract payment. Suomers; the scosts to ob

d to significan

nents of casy, are presen

of GST recov

her compreh

tory or earlye recently bnual reportintandards and

g on or after place IAS 3ement modeldel whose orincipal and loss unless

nts (that are portion of t create an counting treacredit loss'

ss the credit L method is a018. It is not nised represd involve a s

on price. Bothgroup. Fina

g on or afterstandard is thmount that ree standard wobligations wsk; allocatio

ng price of erevenue whhan adjuste

of the goods.ses to transte measure o

Contracts witasset, or a

ufficient quansignificant judbtain or fulfil ntly impact th

sh flows arisnted as oper

verable from,

hensive inco

y adoptedbeen issued ng period endd Interpretatio

1 January 239 'Financials for financi

objective is tointerest. All othe entity mnot held-for-the change accounting

atment with t('ECL') modrisk on a fin

adopted. Theexpected to

sent cash asingle cash fh asset classncial liabilitie

r 1 January hat an entity eflects the c

will require: cowithin the conon of the traeach distincthen each perd to revenu. For servicefer services of progress tth customers

a receivable,ntitative and qdgements ma contract w

he financial s

sing from invrating cash fl

or payable t

ome have b

or amendeded 30 Juneons, most re

2018. The stl Instrumental assets. A o hold assetother financiakes an irretrading) in oin fair valuemismatch). he risk manadel to recog

nancial instrue standard insignificantly

and cash eqflow represeses will conties of the gro

2018. The swill recognis

considerationontracts (eithntract; determansaction prt good or serformance obe. For good

es, the perforto customer

to determines will be pres depending qualitative d

made in applywith a customstatements.

vesting or fiows.

to, the tax au

een reclass

ed but are e 2017. The elevant to the

tandard replts: Recognitfinancial ass

ts in order toal instrumen

evocable elecother compree that relatesNew simpleagement actignise an alloument has inntroduces ad

y impact the fquivalent annting the repnue to be meup are not im

standard prose revenue tn to which thher written, vmine the tranice to the s

ervice, or esbligation is sds, the performance obligrs. For perfo

e how much rsented in anon the rela

isclosure is rying the guidmer. The Gr

nancing

uthority.

ified for

not yet Group's

e Group,

aces all ion and set shall o collect nt assets ction on

ehensive s to the r hedge ivities of owance. creased dditional financial

nd trade payment easured mpacted

ovides a o depict

he entity verbal or nsaction separate timation

satisfied. ormance gation is ormance revenue

n entity's ationship required dance to roup will

27

For

per

sona

l use

onl

y

OncoNotes30 Ju

Note 2 AASBThis s117 'La 'righunavomonthaccouor losprepadismaleasedcosts)compaAmortor losboth athe stJuly 2 Note 3 The paffect relatioand amanaseldoma matfinanc ShareThe Ginstruminto aassumliabilit Fair vThe Gthe lowin actithan q3: Unovalue Note 4 IdentifThe GinternMakeropera The instatem

Sil Medical s to the finanne 2017

2. Significan

B 16 Leases standard is aLeases' and fht-of-use' asoidable futurehs or less aunting policy ss as incurryments, leas

antling costsd asset (incl). In the earared to leastisation) resus under AAS

a principal (fiandard does

2019 but the

3. Critical ac

preparation othe reported

on to assetsassumptionsgement beliem equal the terial adjustmcial year are

e-based paymGroup measuments at theaccount the mptions relaties within the

value measurGroup is requwest level ofive markets fquoted pricesobservable iand therefor

4. Operating

fication of repGroup operaal reports thrs ('CODM'))ting segmen

nformation rements are the

Ltd ncial statem

nt accountin

applicable to for lessees wsset will be e lease payand leases choice existsred. A liabilse incentives. Straight-linuded in opelier periods se expensesults will be imSB 16. For cnancing activs not substaimpact of its

ccounting ju

of the financd amounts in, liabilities, c

s on historiceves to be rerelated actuament to the discussed be

ment transacures the cose date at wh

terms and ing to equitye next annua

rement hierauired to classf input that isfor identical s included wnputs for there which cate

g segments

portable opeates in one sat are review) in assessin

nts.

eported to the same as th

ments

ng policies (

annual repowill eliminate

capitalised yments to be

of low-values whereby elity correspos received, ie operating

erating costsof the leases under AASmproved as tclassificationvities) and inntially changadoption is y

udgements,

ial statemen the financia

contingent liacal experieneasonable unal results. Thcarrying am

elow.

ctions st of equity-sich they are

conditions -settled shar

al reporting p

rchy sify all assets significant tassets or liaithin Level 1 e asset or liaegory the ass

erating segmsegment beiwed and useng performan

e CODM is ohat presented

(continued)

rting periodsthe classificin the state

e made overe assets (suither a 'right-onding to thnitial direct clease expen) and an int

e, the expensSB 117. Hothe operating

n within the snterest (eithege how a lesyet to be ass

, estimates a

nts requires mal statementsabilities, revence and onnder the cirche judgemenmounts of as

settled transagranted. Thupon which

re-based payperiod but ma

ts and liabilitto the entire

abilities that tthat are obs

ability. Considset or liability

ents ng the devic

ed by the Bonce and in d

on at least a d to the COD

23

s beginning ocations of opeement of finar the lease tuch as pers-of-use' assehe capitalisecosts incurrense recogniterest expensses associatowever EBITg expense isstatement of

er operating ossor accountsessed by th

and assump

managemens. Managemeenue and ex other vario

cumstances. nts, estimatesssets and li

actions with he fair value h the instruyments woulay impact pro

ties, measurfair value m

the entity canservable for tderable judgy is placed in

ce developmoard of Direcdetermining

monthly basDM.

on or after 1 erating leaseancial posititerm. The esonal compuet is recognised lease wied and an estion will be rse on the reted with the TDA (Earnins replaced byf cash flowsor financing ats for leasese Group.

ptions

t to make juent continualxpenses. Maous factors,The resultin

s and assumabilities (refe

employees is determine

uments wered have no imofit or loss an

red at fair vameasurementn access at the asset or l

gement is reqn can be subj

ment for newtors (who arthe allocatio

sis. The finan

January 201es and financon, measurexceptions reuters and smsed or lease ll also be rstimate of anreplaced witecognised le

lease undegs Before Iy interest ex, the lease pactivities) co. The Group

udgements, ely evaluates

anagement b, including ng accountingmptions that her to the re

by referenced by using e granted. Tmpact on thend equity.

alue, using a t, being: Levethe measureliability, eithequired to detjective.

w medical trere identified aon of resourc

ncial informa

19. The standce leases. Sued at the pelate to shormall office fpayments arrecognised, ny future resh a depreciaase liability r AASB 16 wnterest, Tax

xpense and dpayments wimponent. Fo

p will adopt t

estimates anits judgeme

bases its judexpectationsg judgementhave a signifspective not

e to the fair the Black-ScThe accoun carrying am

three level el 1: Quoted

ement date; Ler directly or termine what

eatments. Thas the Chief ces. There is

ation present

dard replaceubject to excresent valuert-term leasefurniture) whre expensed adjusted fo

storation, remation charge(included in will be highex, Depreciatdepreciation ill be separaor lessor accthis standard

nd assumptionts and estim

dgements, ess of future ts and estimaficant risk of tes) within t

r value of thecholes modeting estimat

mounts of ass

hierarchy, ba prices (una

Level 2: Inpuindirectly; ant is significan

his is basedf Operating Ds no aggreg

ted in these f

es AASB ceptions, e of the es of 12 here an to profit

or lease moval or e for the

finance er when ion and in profit

ated into ounting,

d from 1

ons that mates in stimates events,

ates will causing

the next

e equity el taking tes and sets and

ased on djusted)

uts other nd Level nt to fair

d on the Decision gation of

financial

notes to the financial statements continueD

OncoSil Medical Annual Report 2017

28

For

per

sona

l use

onl

y

OncoNotes30 Ju

Note ReseaDivideIntereNet (lOther Other AccouRevenmeasu ReseaThe rreseaassist RDTI Group RDTI costs developropo DivideDivide IntereIntereamortrate, wto the Other Other

Sil Medical s to the finanne 2017

5. Other inc

arch and devends est oss)/gain onr income

r income

unting policy nue is recognured. Reven

arch and devresearch andrch and devtance and the

are recognisp will comply

relating to cthat they a

opment expertion that can

ends end revenue

st st revenue istised cost of which is the net carrying

r income income is re

Ltd ncial statem

come

velopment ta

n foreign exch

for revenue nised when iue is measu

velopment tad developmevelopment ee accounting

sed at their fwith all attac

costs are defre intended enditure is nnot be reco

is recognise

s recogniseda financial arate that exa

g amount of t

ecognised wh

ments

ax incentive

hange

recognition it is probablered at the fa

ax incentive ent tax ince

expenditure ig policy adop

fair value whched conditio

ferred and reto compens

deducted agognised on ei

ed when it is

d as interest asset and alactly discounhe financial a

hen it is rece

e that the ecoir value of th

entive ('RDTincurred by

pted is analog

here there isons.

ecognised insate. The pgainst the cither of the p

received or w

accrues usilocating the

nts estimatedasset.

eived or when

24

onomic benee considerat

I') representthe Group.

gous to acco

s a reasonab

the profit orroportion of

carrying amoreceding bas

when the righ

ng the effecinterest inco

d future cash

n the right to

efit will flow ttion received

ts a refundaThe RDTI i

ounting for go

ble assurance

r loss over ththe incentiv

ount of the sis is recogn

ht to receive

ctive interest ome over theh receipts thr

o receive pay

o the Group d or receivab

able tax offsis considereovernment g

e that the in

he period neve that relatrelated non-ised in profit

payment is

method. Thie relevant perough the ex

yment is esta

C 2017 $ 3,446 17 223 (34 68 3,721

and the revele.

set that is aed to be a frants.

centive will b

ecessary to mtes to capita-current asst or loss.

established.

is is a methoeriod using txpected life o

ablished.

onsolidated7 20

6,185 3,87,937 13,387 1,183)

8,256

,582 4,1

enue can be

available on form of gove

be received

match them alised reseasets. Any re

od of calculathe effective of the financi

d016$

832,889 112,012 158,007 34,250

4,533

141,691

e reliably

eligible ernment

and the

with the rch and maining

ating the interest al asset

29

For

per

sona

l use

onl

y

OncoNotes30 Ju

Note Loss DepreOffice EmploEmploDefine Total RentaMinim Note NumeLoss Tax a Tax e

ReShOtFuIm

Incom Tax loUnuse Poten The alossesis pas AccouThe inapplictempo

Sil Medical s to the finanne 2017

6. Expenses

before incom

eciation e equipment

oyee benefitsoyee benefitsed contributi

employee be

al expense remum lease pa

7. Income ta

erical reconcbefore incom

at the statuto

effect amountesearch and hare-based pthers uture income

mpact of tax r

me tax expen

osses not reced tax losses

ntial tax bene

above potents can only bessed.

unting policy ncome tax e

cable incomeorary differen

Ltd ncial statem

s

me tax includ

ts (excluding s on superann

enefits expen

elating to opeayments

ax

ciliation of incme tax expen

ry tax rate of

ts which are developmen

payments

e tax benefit nrate change

nse

cognised s for which n

efit @ 27.5%

tial tax benee utilised in t

for income texpense or

e tax rate for nces, unused

ments

des the follow

share-based

nuation expe

nse

erating lease

come tax expnse

f 27.5% (201

not deductibnt - write bac

not brought t

no deferred ta

(2016: 30%

efit for tax losthe future if t

tax benefit for each jurisdic

d tax losses a

wing specific

d payments)

nse

es

pense and ta

6: 30%)

ble/(taxable) ck

to account

ax asset has

)

sses has nothe continuit

the period iction, adjusteand the adjus

25

expenses:

ax at the statu

in calculating

s been recog

ot been recoy of ownersh

is the tax ped by the chastment recog

utory rate

g taxable inc

nised

gnised in thhip test is pa

payable on tanges in defgnised for pr

come:

e statement assed, or fail

that period'sferred tax asrior periods, w

C 2017 $ 29 4,103 357 4,461 179

C 2017 $ (7,016 (1,929 1,225 382 30 158 132

C 2017 $ 6,356 1,747

of financial ing that, the

taxable incsets and liabwhere applic

onsolidated7 20

9,132

3,620 3,07,931 1

,551 3,2

9,417 3

onsolidated7 20

6,079) (4,7

9,422) (1,4

5,092 72,187 20,951 18,758 32,434

-

onsolidated7 20

6,239 5,2

7,966 1,5

position. Thsame busin

come based bilities attribucable.

d016$

21,357

072,133 195,071

267,204

342,547

d016$

768,598)

430,579)

706,965 242,611 107,480 373,523

-

-

d016$

297,360

589,208

hese tax ess test

on the utable to

notes to the financial statements continueD

OncoSil Medical Annual Report 2017

30

For

per

sona

l use

onl

y

OncoNotes30 Ju

Note Deferrthe asexcep● W

tn

● Wtf

Deferrfuture The ctax asthe caproba Deferragainsautho Note Cash Cash AccouCash liquid cash a Note 9 OtherResea AccouOther

Sil Medical s to the finanne 2017

7. Income ta

red tax assessets are rept for: When the detransaction tnor taxable pWhen the taxthe timing offoreseeable f

red tax asse taxable amo

carrying amossets recognarrying amouble that there

red tax assest current tarity on either

8. Current a

at bank on deposit

unting policy and cash eqinvestments

and which ar

9. Current a

r receivablesarch and dev

unting policy receivables

Ltd ncial statem

ax (continue

ets and liabilcovered or

eferred incomhat is not a

profits; or xable tempof the reversafuture.

ets are recogounts will be

ount of recogised are red

unt to be rece are future t

ets and liabiax liabilities ar the same ta

assets - cash

for cash andquivalents ins with originare subject to

assets - trad

s velopment ta

for trade andare recognis

ments

ed)

ities are recoliabilities are

me tax asset business co

orary differenal can be co

gnised for deavailable to

gnised and uuced to the

covered. Pretaxable profi

lities are offand deferredaxable entity

h and cash

d cash equivcludes cash

al maturities an insignific

de and other

ax incentive r

d other receised at amort

ognised for te settled, ba

or liability armbination an

nce is assocontrolled and

eductible temutilise those

unrecognisedextent that it

eviously unrets available t

fset only whd tax assets

or different t

equivalents

valents on hand, debetween thr

cant risk of ch

r receivables

receivable

ivables ised cost, les

26

temporary dased on thos

rises from thnd that, at th

iated with ind it is probab

mporary diffee temporary d

d deferred tat is no longe

ecognised deto recover th

ere there is against defe

taxable entiti

s

eposits held ree and six mhanges in va

s

ss any provis

ifferences atse tax rates

e initial recohe time of th

terests in suble that the

erences and differences a

ax assets areer probable theferred tax ahe asset.

a legally enerred tax liabies which inte

at call with fmonths that aalue.

sion for impa

t the tax ratethat are en

gnition of goe transaction

ubsidiaries, atemporary d

unused tax and losses.

e reviewed ahat future taxassets are re

nforceable ribilities; and end to settle

financial instare readily c

airment.

es expected acted or sub

oodwill or an n, affects ne

associates odifference wi

losses only

at each repoxable profits ecognised to

ight to offsethey relate t simultaneou

C 2017 $ 7,890 110 8,000

titutions, otheconvertible to

C 2017 $ 83 3,446 3,529

to be appliebstantively e

asset or liabeither the acc

r joint venturll not revers

if it is proba

orting date. Dwill be avail

the extent t

t current taxto the same usly.

onsolidated7 20

0,618 9,60,000 1

0,618 9,7

er short-termo known amo

onsolidated7 20

3,203 36,185 2,2

9,388 2,6

ed when enacted,

bility in acounting

res, andse in the

able that

Deferred lable for that it is

x assets taxable

d016$

673,276 107,050

780,326

m, highly ounts of

d016$

330,497 297,446

627,943

31

For

per

sona

l use

onl

y

OncoNotes30 Ju

Note Listed ReconRecoout be OpenFair vDispo Closin Refer AccouInvestinitial either the ac Finanbeen t FinanFinansellingare mhedginrecog ImpairThe Ggroupbreaceconobankrdata in The aamoufinanc Note PrepaOther

Sil Medical s to the finanne 2017

10. Current

d shares - de

nciliation nciliation of telow:

ing fair valuevalue movemosals

ng fair value

to note 17 fo

unting policy tments and omeasuremeamortised c

cquisition and

cial assets atransferred a

cial assets acial assets ag in the shor

managed on ng instrumenised in prof

rment of finaGroup assess of financial h of contrac

omic or legauptcy or othndicating tha

amount of thent and the p

cial assets.

11. Current

ayments r deposits

Ltd ncial statem

assets - fin

esignated at f

the fair value

e ment

or further info

for investmeother financi

ent, except focost or fair vd subsequen

are derecognand the Grou

at fair value that fair value thrt-term with aa fair value nts, derivativfit or loss.

ancial assets ses at the enassets is im

ct such as dal reasons ther financial r

at there is a m

e impairmenpresent value

assets - oth

ments

ancial asset

fair value thr

es at the beg

ormation on

ents and otheial assets aror financial aalue depend

nt reclassifica

nised when up has transf

hrough profithrough profitan intention o

basis or to ves are also

nd of each rmpaired. Objedefault or dehat the lendreorganisatiomeasurable d

t allowance e of estimate

her

ts at fair val

rough profit o

inning and e

fair value me

er financial are initially meassets at faiding on their ation to other

the rights toferred substa

t or loss t or loss are of making a eliminate o

o categorise

eporting perective evide

elinquency inder would noon; the disapdecrease in

for financial ed future ca

27

lue through

or loss

end of the cu

easurement.

assets easured at fir value throclassificatio

r categories

o receive casantially all the

either: (i) heprofit; or (ii) r significantled at fair va

riod whether nce includes

n payments; ot otherwiseppearance ofestimated fu

assets carriesh flows, dis

profit or los

rrent financia

fair value. Trugh profit or

on. Classificais restricted.

sh flows frome risks and re

ld for tradingdesignated

y reduce analue through

there is anys significant the lender do; it becof an active mture cash flo

ed at cost isscounted at

ss

al year is set

ransaction cor loss. They

ation is deter

m the financewards of ow

g, where theyas such upo

n accountingh profit or lo

y objective evfinancial diffgranting to

omes probabmarket for thows.

s the differenthe current

C 2017 $

t

3,258 (126 (3,131

osts are inclare subseq

rmined based

ial assets hawnership.

y are acquireon initial reco mismatch.

oss. Fair val

vidence thatficulty of the a borrower ble that the he financial a

nce between market rate

C 2017 $ 90 69 159

onsolidated7 20

- 3,2

8,787 3,56,944) (,843) (3

- 3,2

luded as parquently measd on the pur

ave expired

ed for the purognition, wheExcept for elue moveme

t a financial aissuer or ob

concessionsborrower w

asset; or obs

the asset's of return for

onsolidated7 20

0,145 9,254

9,399 1

d016$

258,787

597,675 (37,704)301,184)

258,787

rt of the sured at rpose of

or have

rpose of ere they effective ents are

asset or bligor; a s due to will enter servable

carrying r similar

d016$

68,945 69,254

138,199

notes to the financial statements continueD

OncoSil Medical Annual Report 2017

32

For

per

sona

l use

onl

y

OncoNotes30 Ju

Note TradePayroOther Refer AccouThesewhichamou Note Ordin Movem Detai BalanOptioEmploEmploShareEmploOptioPlaceOptioOptioEmploOptioOptioTrans BalanEmploOptio Balan OrdinaOrdinapropoComp On a share

Sil Medical s to the finanne 2017

12. Current

e payables oll liabilities r payables

to note 16 fo

unting policy e amounts re are unpaidnts are unse

13. Equity -

ary shares -

ments in ord

ls

nce ns exercisedoyee loan shoyee loan shes buy-back oyee loan shns exercised

ement issue ons exercisedns exercisedoyee loan shns exercisedns exercised

saction cost

nce oyee loan shns exercised

nce

ary shares ary shares ertion to the n

pany does no

show of hanshall have o

Ltd ncial statem

liabilities - t

or further info

for trade andepresent liabd. Due to thecured, non-i

issued cap

fully paid

dinary share c

d hares issued hares exercis

hares issued d of shares d d hares issued d d

hares issued d

entitle the hnumber of anot have a lim

nds every meone vote.

ments

trade and ot

ormation on

d other payabilities for gooeir short-ternterest bear

ital

capital

sed

older to parnd amounts pited amount

ember prese

ther payable

financial inst

ables ods and servm nature thing and are u

rticipate in dpaid on the sof authorised

ent at a meet

28

es

truments.

vices providehey are meausually paid

48

Date

1 July 20158 October 28 October 2 14 Decembe13 January 21 January 10 February10 February15 April 20110 May 20113 May 20130 June 201 30 June 20112 August 212 May 201 30 June 201

dividends anshares held. d capital.

ting in perso

ed to the Groasured at amwithin 60 da

2017Shares

87,455,468

015 015

er 2015 2016 2016

y 2016 y 2016 6 6 6

16

16 2016 7

17

d the proceThe fully pai

on or by prox

oup prior to tmortised cosys of recogn

Cons2016

Shares

464,455,46

Shares

356,162,461,250,002,307,69

(6,000,0014,230,76

500,0045,454,548,000,00

250,0024,000,008,000,00

10,300,00

464,455,464,000,00

19,000,00

487,455,46

eds on the d ordinary sh

xy shall have

C 2017 $ 901 597 25 1,524

the end of thst and are nnition.

solidated 2017 $

68 36,644

Issue p

60 00 $93 $

- $00) $69 $00 $46 $00 $00 $00 $00 $00 $

- $

68 00 $00 $

68

winding up hares have n

e one vote a

onsolidated7 20

,276 27,950 65,049

4,275 9

he financial ynot discounte

7 20

4,596 35,6

price

23,8$0.05 $0.00$0.00 9$0.00$0.00$0.05 $0.22 10,0$0.05 4$0.05 $0.00$0.05 4$0.05 5$0.00 (5

35,6$0.22 $0.05 9

36,6

of the Comno par value

nd upon a p

d016$

216,698 662,961 88,227

967,886

year and ed. The

016$

694,596

$

806,347 62,500

-975,000

--

25,000 000,000 400,000 12,500

-400,000 515,000 501,751)

694,596 -

950,000

644,596

mpany in and the

oll each

33

For

per

sona

l use

onl

y

OncoNotes30 Ju

Note ShareThere CapitaThe Gsustaireturn Capitaas tota The G The c AccouOrdina Incremfrom t Note ForeigShare ForeigThe reoperaopera ShareThe rremunand ot

Sil Medical s to the finanne 2017

13. Equity -

e buy-back e is no curren

al risk managGroup's policin future dev

n of capital.

al is regardedal borrowing

Group is not s

apital risk ma

unting policy ary shares a

mental costs the proceeds

14. Equity -

gn currency e-based paym

gn currency reserve is ustions to Austions.

e-based paymreserve is usneration undether parties a

Ltd ncial statem

issued cap

nt on-market

gement cy is to maintvelopment of

d as total eqs less cash a

subject to an

anagement p

for issued caare classified

directly attris.

reserves

reserve ments reserv

reserve sed to recogntralian dollar

ments reservsed to recoer an Emploas part of the

ments

ital (continu

share buy-b

tain a strongthe busines

uity, as recoand cash equ

ny financing a

policy remain

apital as equity.

butable to th

ve

nise exchangrs. It is also

ve gnise the vayee Share Peir compensa

ued)

back.

g capital bass. Given the

ognised in theuivalents.

arrangement

ns unchange

he issue of n

ge differenceused to reco

alue of equPlan; directoration for serv

29

se so as to mstate of the

e statement

ts covenants

ed from the 3

new shares o

es arising froognise gains

ity benefits rs on terms dvices.

maintain inveGroup's dev

of financial p

s or externally

30 June 2016

or options are

om the transand losses

provided to:determined b

estor, creditovelopment th

position, plus

y imposed ca

6 Annual Rep

e shown in e

slation of theon hedges o

: employeesby the Board

or and markehere are no fo

s net debt. N

apital require

port.

equity as a d

C 2017 $ (78 4,065 3,986

e financial stof the net inv

s and directod and approv

et confidenceormal targets

et debt is ca

ements.

eduction, ne

onsolidated7 20

,688) (5,118 2,6

6,430 2,5

tatements ofvestments in

ors as part ved by share

e and to s set for

alculated

et of tax,

d016$

(79,148)675,346

596,198

f foreign n foreign

of their holders;

notes to the financial statements continueD

OncoSil Medical Annual Report 2017

34

For

per

sona

l use

onl

y

OncoNotes30 Ju

Note MovemMovem Cons BalanForeigShare BalanForeigShare Balan Note There Note FinanThe Grisk meffectswhichrisk. Risk m('the procereport Marke ForeigThe G Price The Gcompalocatio The fa IntereThe Gand flo The cin notepossibmonth

Sil Medical s to the finanne 2017

14. Equity -

ments in resments in eac

solidated

nce at 1 July gn currency e-based paym

nce at 30 Jungn currency e-based paym

nce at 30 Jun

15. Equity -

e were no div

16. Financia

ncial risk maGroup's activmanagement s on the fina it is expose

managementBoard'). Thedures, controts to the Boa

et risk

gn currency rGroup is not e

risk Group was earative perioons.

air value of th

st rate risk Group's main oating rate d

arrying valuee 8. The effeble change inhly issued ca

Ltd ncial statem

reserves (c

erves ch class of re

2015 translation ments

ne 2016 translation ments

ne 2017

dividends

vidends paid,

al instrumen

anagement ovities expose

program focancial performed. These m

t is carried oese policies ols and risk rd on a mon

risk exposed to s

exposed to sod. Such risk

he Group's in

interest ratedeposits.

e of the Grouect a 100 (20n basis point

ash rate over

ments

continued)

eserve during

, recommend

nts

objectives it to a variet

cuses on themance of theethods inclu

out by senior include ide

limits. Financthly basis.

significant for

securities prk was mana

nvestments a

e risk arises f

up's cash an016: 100) basts was basedr the past five

g the current

ded or declar

ty of financiae unpredictae Group. Thede sensitivity

r finance exeentification ace identifies,

reign currenc

rice risk on aged through

as at the end

from cash at

nd cash equivsis point inted on the anae years.

30

t and previou

red during th

al risks: markability of finae Group usey analysis in

ecutives ('finaand analysis, evaluates fi

cy risk.

investmentsh diversificat

d of compara

t bank and sh

valents at therest rate chalysis of the a

us financial y

he current or

ket risk, credancial marketes different mn the case of

ance') under s of the riskinancial risks

s held for tration of inves

ative period a

hort term dep

e reporting dange is detaaverage chan

year are set o

Foreign currency

$

(79,14

(79,1446

(78,68

previous fina

dit risk and lits and seek

methods to mf interest rat

policies appk exposure s within the G

ading over tstments acro

are detailed i

posits The po

date, subjectiled below. Tnge of the R

out below:

Share-ba payme $

- 1,86648)

- 808

48) 2,67560

- 1,389

88) 4,065

ancial year.

iquidity risk. s to minimis

measure diffete and agein

proved by theof the Grou

Group's oper

he medium oss industrie

n note 10.

olicy is to ma

t to interest rThe method eserve Bank

ased nts To

6,643 1,8- (

8,703 8

5,346 2,5-

9,772 1,3

5,118 3,9

The Group'sse potential erent types og analysis fo

e Board of Dup and apprating units.

to long termes and geog

aintain a mix

rate risk are used to arriv

k of Australia

otal $

866,643 (79,148)808,703

596,198 460

389,772

986,430

s overall adverse

of risk to or credit

Directors propriate Finance

m in the raphical

x of fixed

detailed ve at the a ('RBA')

35

For

per

sona

l use

onl

y

OncoNotes30 Ju

Note

Cons Cash

Cons Cash CrediCreditGroupsettingexposimpairGroup The c LiquidVigilanequiva The Gcash f The Gleases RemaThe fobeen financcontra

Cons Non-dNon-iTradePayroOtherTotal

Sil Medical s to the finanne 2017

16. Financia

solidated - 2

and cash eq

solidated - 2

and cash eq

it risk t risk refers p. The Groug appropriatesure to creditrment of thosp does not ho

redit risk on

dity risk nt liquidity alents) to be

Group managflows and ma

Group's objes and equity

aining contracollowing tabledrawn up b

cial liabilities actual maturi

solidated - 2

derivatives interest bearie payables oll liabilities r payables non-derivativ

Ltd ncial statem

al instrumen

017

quivalents

016

quivalents

to the risk thp has a strice credit limitt risk at the rse assets, aold any colla

liquid funds

risk manageable to pay

ges liquidity atching the m

ective is to mfunding.

ctual maturites detail the

based on theare requiredties and ther

017

ring

ves

ments

nts (continu

Basis po

chang

Basis po

chang

hat a countect code of cts. The Groureporting datas disclosed teral.

is limited bec

ement requdebts as and

risk by mainmaturity profi

maintain a b

ties Group's reme undiscound to be paid. refore these

ed)

Basis poi

oints ge

Effeprofit

t

100

Basis poi

oints ge

Effeprofit

t

100

erparty will dcredit, includup obtains gte to recogniin the statem

cause the co

ires the Grd when they

ntaining adeqles of financ

alance betw

maining contted cash floThe tables itotals may d

1 yea

95

1,5

31

ints increasect on t before tax

E

80,006

ints increasect on t before tax

E

97,803

default on itsing obtaining

guarantees wsed financiament of finan

ounter party i

roup to maibecome due

quate cash rial assets an

ween continu

ractual matuows of finannclude both

differ from the

ar or lessBan

$

901,276 597,950 25,049

524,275

e

Effect on equity

80,006

e

Effect on equity

97,803

s contractual g agency cr

where approl assets is thncial position

is a bank wit

ntain sufficie and payabl

reserves by nd liabilities.

uity of fundin

urity for its fincial liabilitiesinterest and

eir carrying a

Between 1 nd 2 years

$

----

B

Basis pointchange

(10

B

Basis pointchange

(10

obligations redit informapriate to mit

he carrying an and notes

h high credit

ent liquid ae.

continuously

ng and flexib

nancial instrus based on principal ca

amount in the

Between 2and 5 years

$

asis points

ts Effect profit be

tax

00) 80

asis points

ts Effect profit be

tax

00) 97

resulting in ation, confirmtigate credit amount, net oto the financ

t rating.

assets (main

y monitoring

bility through

ument liabilitithe earliest

ash flows disce statement o

2 s

Over 5 y $

- - - -

decreaseon

efore Effeeq

0,006

decreaseon

efore Effeeq

7,803

financial losming referenc

risk. The mof any proviscial statemen

nly cash an

actual and f

h the use of

ies. The tabldate on wh

closed as reof financial p

years

Remcontrmat

- 9- 5-- 1,5

ect on quity

80,006

ect on quity

97,803

s to the ces and aximum

sions for nts. The

nd cash

forecast

finance

es have hich the maining

position.

maining ractual urities $

901,276 597,950 25,049

524,275

notes to the financial statements continueD

OncoSil Medical Annual Report 2017

36

For

per

sona

l use

onl

y

OncoNotes30 Ju

Note

Cons Non-dNon-iTradePayroOtherTotal The cabove Note Fair vThe fohierarLevel measuLevel or indLevel Cons AssetFinaninvestTotal There AccouWhenfair vabetweprincip Fair vassumhighesavailaunobs Assetssignifitransfvalue For renot avand reanalyswhere

Sil Medical s to the finanne 2017

16. Financia

solidated - 2

derivatives interest bearie payables oll liabilities r payables non-derivativ

cash flows ine.

17. Fair valu

value hierarchollowing tabrchy, based o

1: Quoted purement date2: Inputs othirectly 3: Unobserv

solidated - 2

ts ncial assets atments assets

e were no tra

unting policy n an asset oralue is basedeen market ppal market; o

value is meaming they acst and best

able to measservable inpu

s and liabilitcance of theers betweenmeasureme

ecurring and vailable or weputation. Wsis is underte applicable,

Ltd ncial statem

al instrumen

016

ring

ves

n the maturity

ue measurem

hy bles detail thon the lowestprices (unade her than quo

vable inputs f

016

at fair value t

nsfers betwe

for fair valuer liability, finad on the priceparticipants or in the abse

asured usingct in their eco

use. Valuatsure fair valuuts.

ties measuree inputs use

n levels are dnt.

non-recurrinhen the valu

Where there aken, which with externa

ments

nts (continu

y analysis a

ment

he Group's at level of inp

djusted) in ac

oted prices in

for the asset

through profi

een levels du

e measuremeancial or none that would at the measence of a pri

g the assumonomic bestion techniquue, are used

ed at fair valed in makingdetermined b

ng fair value uation is deeis a significaincludes a v

al sources of

ed)

1 yea

26

9

bove are no

assets and lut that is signctive market

ncluded with

t or liability

t or loss -

uring the fina

ent n-financial, isbe received

surement dancipal marke

mptions that t interests. Fues that are d, maximisin

ue are classg the measubased on a r

measurememed to be siant change verification odata.

32

ar or lessBan

$

216,698 662,961 88,227

967,886

ot expected t

liabilities, menificant to thets for identic

in Level 1 th

ancial year.

s measured to sell an as

ate; and asset, in the mos

market partFor non-finan

appropriate g the use o

sified, into thurements. Creassessmen

ents, externaignificant. Exin fair value

of the major

Between 1 nd 2 years

$

----

to occur sign

easured or de entire fair v

cal assets or

hat are obser

Level 1 $

3,258,787 3,258,787

at fair valuesset or paid tumes that thst advantage

ticipants woncial assets,

in the circuf relevant ob

hree levels, uClassificationsnt of the lowe

al valuers maxternal value of an asseinputs applie

Between 2and 5 years

$

nificantly ear

disclosed atvalue measur liabilities th

rvable for the

Level 2$

e for recognito transfer a he transactioeous market.

uld use whethe fair valu

umstances abservable in

using a fair vs are reviewest level of in

ay be used wers are selectt or liability ed in the late

2 s

Over 5 y $

- - - -

rlier than con

t fair value, urement, beinhat the entity

e asset or lia

Level $

-

-

tion or discloliability in an

on will take

en pricing thue measuremnd for whichputs and mi

value hierarcwed at each nput that is s

when internated based onfrom one peest valuation

years

Remcontrmat

- 2- 6-- 9

ntractually di

using a threng: y can acces

ability, either

3 To

- 3,2- 3,2

osure purposn orderly tranplace either

he asset or ment is baseh sufficient dinimising the

chy that reflereporting d

significant to

al expertise n market knoeriod to anon and a com

maining ractual urities $

216,698 662,961 88,227

967,886

isclosed

ee level

s at the

r directly

otal $

258,787 258,787

ses, the nsaction r: in the

liability, ed on its data are e use of

ects the ate and

o the fair

is either owledge ther, an parison,

37

For

per

sona

l use

onl

y

OncoNotes30 Ju

Note CompThe abelow ShortPost-eShare Note Duringaudito Audit Audit Note 2 On 16Theratarget pSiMeTransthe Prsumm ● Onc ● Onctrials a (i) Duother perforthis pa20% w (ii) 20third pprotecand co

Sil Medical s to the finanne 2017

18. Key man

pensation aggregate cow:

-term employemploymente-based paym

19. Remune

g the financior of the Com

services - Cor review of

20. Conting

6 April 201apeutics Limited brachythe

edica has graction (with roduct in the

marised below

coSil UK is re

coSil UK is reand becomin

ring the termproduct prot

rmed using tayment musworld-wide m

% of any forparty licensincted by the rountry-by-co

Ltd ncial statem

nagement p

mpensation

yee benefits t benefits ments

eration of au

ial year the mpany:

Crowe Horwathe financia

ent liabilitie

3, OncoSil ited "OncoSerapy produc

ranted to Olimited rights

e field of thew:

equired to ma

equired to mng registered

m of the licentected by thethe Product t be made w

market share

rm of considng deals andrights arisingountry basis.

ments

personnel di

made to dire

uditors

following fee

th Sydney l statements

es

Medical Ltdil UK"). Oncct for the trea

ncoSil UK as to sub-licenrapy in hum

ake a payme

ake the follod for sale.

nce, 8% of fue rights arisinor such othe

whenever appof sales, on

eration, paymd various othg from the As

sclosures

ectors and o

es were paid

d settled thecoSil UK holatment of can

an exclusivense) under than neoplasti

ent of up to U

wing payme

uture net salng from the Aer products, proved genea country-by

ments, royalher agreemessigned Pate

33

ther membe

d or payable

e acquisitionlds a licencencer ('the Pro

world-wide he Licensed ic disease (c

US$100,000

nts for paten

les (future saAssigned Paton a produc

eric competitoy-country and

ties, third paents with thirdents, for the

rs of key ma

e for service

n of OncoSe to commeoduct') unde

royalty-beaPatents sole

cancer). Key

to pSiMedica

nts and subje

ales which ctents (if soldct-by-producor products dd product-by

arty net salesd parties in term of the

anagement p

es provided

Sil Medical (rcialise Onc

er a licence a

ring license ely to make, y terms of th

a annually to

ect to the Pro

cannot be gu by OncoSil t and countrderived from

y-product bas

s income anrelation to thpSiMedica l

personnel of

C 2017 $ 1,090 76 1,089 2,256

by Crowe H

C 2017 $ 45

(UK) LimitedcoSilTM (formagreement fro

for the termuse, sell, offe license ag

o support exi

oduct comple

uaranteed) ofUK or its aff

ry-by-countrym the Producsis.

d other paymhe Product oicence, on a

the Group is

onsolidated7 20

0,066 86,932 9,401 5

6,399 1,4

orwath Sydn

onsolidated7 20

5,000

d (formerly erly BrachySom pSiMedic

m of the pSfer to sell andgreement hav

sting patents

eting positive

f the Producfiliates) and sy basis. Onlyct maintain at

ments receivor any other a product-by-

s set out

d016$

812,296 63,626

540,876

416,798

ney, the

d016$

35,500

Enigma SilTM), a ca.

SiMedica d import ve been

s; and

e clinical

ct or any services y half of t least a

ved from product

-product

notes to the financial statements continueD

OncoSil Medical Annual Report 2017

38

For

per

sona

l use

onl

y

OncoNotes30 Ju

Note 2 (iii) Ponow o - Oncaggrean ind - aggrto Onc - aggrto Onc Termi UnlesagainsOncoScountr ● the countrcountr ● ten Assign In addhave t The d Note 2 LeaseCommWithinOne t Operaleasesannua Note 2 ParenOncoS SubsiIntere

Sil Medical s to the finanne 2017

20. Conting

otential milesor in the futur

coSil UK, its gate net sale

dication and (

regate net sacoSil UK, its

regate net sacoSil UK, its

ination of lice

s terminatedst pSiMedicaSil UK's rightry-by-country

date on whry is no longry; and

years from tned Patents

dition, if Oncthe right to te

irectors are n

21. Commit

e commitmenmitted at the n one year to five years

ating lease cs expiring onal basis to ref

22. Related

nt entity Sil Medical L

idiaries sts in subsid

Ltd ncial statem

ent liabilitie

stone paymere (ranging fr

affiliates anes of the Pro(ii) a second

ales of the Paffiliates and

ales of the Paffiliates and

ence agreem

d early for rea in certain cts to exploit y and produc

ich the prodger covered

the date of fiin such coun

coSil UK reaserminate the

not aware of

ments

nts - operatinreporting da

commitmentn 28 Februaflect market

party transa

Ltd is the par

diaries are se

ments

es (continue

ents based orom US$1,00

d any of Onoduct and anindication;

roduct and ad third party

roduct and ad third party

ment

easons such circumstancethe product

ct-by-product

uct or any oor protected

rst commercntry.

sonably formlicense agre

f any other co

ng ate but not re

ts include coary 2021, witrentals.

actions

rent entity.

et out in note

ed)

only upon the00,000 to US

ncoSil UK's tny other prod

any other protransferees

any other protransferees

as a materiaes (including

and any otht basis, until

other producd by a poten

cial sale of a

ms the view teement by gi

ommitments

cognised as

ontracted amh, in some c

e 24.

34

e Product beS$5,000,000)

third party trduct protecte

oduct protectin a calenda

oduct protectin a calenda

al breach, orby OncoSil Uer products the later to o

ct protected bntial claim of

product or a

hat it is not civing 60 days

or contingen

liabilities, pa

mounts for ccases, option

eing a comm) upon:

ransferees toed by the righ

ted by the rigr year of US$

ted by the rigr year of US$

r by pSiMedUK), the termarising from occur of:

by the rightsf the License

any other pro

capable of cs prior written

ncies as at 3

ayable:

commercial ns to extend

ercial succes

ogether potehts arising fr

ghts arising f$20,000,000

ghts arising f$100,000,00

ica due to a m of the licen

the Assigne

s arising fromed Patents o

oduct protect

commercialisn notice to p

30 June 2017

premises ud. The lease

ss, which ca

entially achierom the Assi

from the Ass0 or more; an

from the Ass00 or more.

patent challnce for the Lied Patents, r

m the Assignor the Assign

ted by the rig

ing OncoSilTSiMedica.

7.

C 2017 $ 131 350 481

nder non-ca payments a

annot be gua

eving US$5,0gned Patent

signed Patennd

signed Paten

lenge being censed Pate

remain in effe

ned Patents ned Patents

ghts arising f

TM, OncoSil U

onsolidated7 20

,319 10,185 4

,504 6

ancellable opare increase

aranteed

000,000 ts, for (i)

nts, paid

nts, paid

brought ents and ect on a

in such in such

from the

UK shall

d016$

131,319 481,504

612,823

perating d on an

39

For

per

sona

l use

onl

y

OncoNotes30 Ju

Note 2 Key mDisclodirecto TransPaymfinanc Paymduring ReceiThere LoansThere TermsAll tra Note 2 Set ou Statem Loss Total Statem Total Total Total Total Equity

IssShAc

Total GuaraThe p

Sil Medical s to the finanne 2017

22. Related

management osures relatinors' report.

sactions with ent of Direct

cial year of $8

ent of Directg the financia

ivable from ae were no tra

s to/from relae were no loa

s and conditinsactions we

23. Parent e

ut below is th

ment of profi

after income

comprehens

ment of finan

current asse

assets

current liabil

liabilities

y sued capital hare-based pccumulated l

equity

antees enterearent entity h

Ltd ncial statem

party transa

personnel ng to key m

related partitor's fees to 80,000 (2016

tor's fees to al year of $27

and payable tde receivabl

ated parties ans to or from

ions ere made on

entity inform

he suppleme

it or loss and

e tax

sive income

ncial position

ets

lities

payments resosses

ed into by thhad no guara

ments

actions (con

management

ies Dr Chris Ro

6: $35,191).

Mr. Martin 7,889 (2016:

to related paes from or tr

m related par

n normal com

mation

entary informa

d other compr

n

serve

e parent entiantees in rela

ntinued)

personnel a

oberts, were

Rogers, wer $87,384).

arties rade payable

rties at the cu

mmercial term

ation about t

rehensive in

ity in relationation to the d

35

are set out i

e made to hi

re made to h

es to related

urrent and pr

ms and condi

the parent en

come

n to the debtsdebts of its s

n note 18 a

s director-re

his director-r

parties at the

revious repo

itions and at

ntity.

s of its subsidubsidiaries a

and the remu

elated entity,

related entity

e current and

rting date.

market rates

diaries as at 30 June

uneration re

Robertsplan

y, Structure I

d previous re

s.

2017 $ (6,756 (6,756

2017 $ 12,266 12,381 1,660 1,660 36,644 4,065 (29,987 10,721

e 2017 and 3

port included

n Pty Ltd du

Investments

eporting date

Parent7 20

6,309) (4,5

6,309) (4,5

Parent7 20

6,486 16,1

,957 16,2

0,120 1,0

0,120 1,0

4,596 35,65,118 2,6,877) (23,2

,837 15,1

30 June 2016

d in the

uring the

Pty Ltd

e.

016$

568,728)

568,728)

016$

130,302

222,015

083,641

083,641

694,596 675,346 231,568)

138,374

6.

notes to the financial statements continueD

OncoSil Medical Annual Report 2017

40

For

per

sona

l use

onl

y

OncoNotes30 Ju

Note 2 ContinThe p CapitaThe p SignifiThe afollow● I● D

i Note 2 The caccord Name OncoOncoOncoOnco Note 2 Loss AdjusDepreShareForeig(GainLoss Chan

IncIncInc

Net ca Note 2 Loss

Sil Medical s to the finanne 2017

23. Parent e

ngent liabilitiearent entity h

al commitmearent entity h

ficant accounaccounting powing:

nvestments Dividends rendicator of a

24. Interests

consolidateddance with th

e

Sil Medical USil Medical GSil Medical USil Medical N

25. Reconci

after income

stments for: eciation and e-based paymgn exchange)/loss on finaon disposal o

ge in operaticrease in othcrease in tracrease in em

ash used in o

26. Earning

after income

Ltd ncial statem

entity inform

es had no conti

ents - Properthad no capita

nting policiesolicies of the

in subsidiarieceived from an impairmen

s in subsidi

financial she accountin

UK Limited Germany GmUS Inc. NZ Limited

iliation of lo

e tax expense

amortisationments e differencesancial assetsof assets

ing assets anher operatingade and othemployee bene

operating ac

s per share

e tax attributa

ments

mation (cont

ngent liabiliti

rty, plant andal commitme

s e parent enti

es are accousubsidiaries

nt of the inve

aries

tatements inng policy des

mbH

oss after inc

e for the yea

n

s at fair value

nd liabilities: g assets r payables efits

ctivities

able to the ow

tinued)

ies as at 30 J

d equipmentents for prope

ty are consis

unted for at cs are recognestment.

ncorporate tscribed in not

ome tax to n

ar

e through pro

wners of Onc

36

June 2017 a

erty, plant an

stent with th

cost, less anyised as othe

the assets, te 2:

Principal Country o

United KinGermanyUnited StaNew Zeala

net cash us

ofit or loss

coSil Medica

nd 30 June 2

nd equipmen

ose of the G

y impairmener income by

liabilities an

place of buof incorpora

ngdom

ates and

ed in operat

al Ltd

2016.

nt as at 30 Ju

Group, as dis

t, in the parey the parent

nd results o

siness /ation

ting activitie

une 2017 and

sclosed in no

ent entity. entity and its

of the follow

Own 2017 % 100. 100. 100. 100.

es

C 2017 $ (7,016 29 1,389 (166 94 (1,024 556 27 (6,109

C 2017 $ (7,016

d 30 June 20

ote 2, excep

s receipt ma

wing subsidi

nership inter7 20

00% 1000% 1000% 1000% 10

onsolidated7 20

6,079) (4,7

9,132 9,772 8

460 (6,261)4,218

,842) (1,26,389 57,366

9,845) (4,5

onsolidated7 20

6,079) (4,7

016.

t for the

ay be an

aries in

rest016%

00.00% 00.00% 00.00% 00.00%

d016$

768,598)

21,357 808,703 (79,148)26,918 10,635

222,414)576,738 53,241

572,568)

d016$

768,598)

41

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OncoNotes30 Ju

Note 2 Weigh Weigh BasicDilute Option Accou Basic Basic any coduring DiluteDilutethe afweighordina Note 2 The GparticivestinGrouprecouno cas The foarrang

Sil Medical s to the finanne 2017

26. Earning

hted average

hted average

c earnings peed earnings p

ns have not b

unting policy

earnings peearnings pe

osts of servig the financia

d earnings pd earnings pfter income thted averageary shares.

27. Share-b

Group's Empipants are gr

ng period as p. Dividends rse loan hassh settlemen

ollowing shargement:

Ltd ncial statem

s per share

e number of

e number of

er share per share

been include

for earnings

er share er share is ccing equity o

al year, adjus

per share per share adtax effect of e number of

ased payme

ployee Shareranted sharestated in thare for the

s been repaidnt alternative

re-based pay

ments

(continued)

ordinary sha

ordinary sha

ed in the dilut

s per share

calculated byother than orsted for bonu

djusts the figinterest andshares assu

ents

e Plan (‘ESPes which onlye below tabbenefit of thd. Shares isss.

yment transa

)

ares used in c

ares used in c

ted earnings

y dividing therdinary shareus elements

ures used in other financumed to hav

P’) is designey vest if certale. The issue employee.sued under t

actions occu

37

calculating b

calculating d

s per share c

e profit attribes, by the win ordinary s

n the determcing costs asve been issu

ed as an incain performae price is fu. Employeesthe ESP are

rred during t

basic earning

diluted earnin

alculation as

butable to theweighted avershares issued

mination of bassociated wiued for no c

centive for sence standard

ully financed s are not per

accounted f

the reporting

gs per share

ngs per share

s they are an

e owners of rage numbed during the f

asic earningsith dilutive poconsideration

enior managds are met. Oby a limited

rmitted to defor in a simila

period purs

Numb 470,597

e 470,597

Cents ( (

nti-dilutive.

OncoSil Mer of ordinaryfinancial yea

s per share totential ordinn in relation

ers and aboOnce granted recourse loeal in the shaar manner as

uant to the li

ber Num

7,934 387,6

7,934 387,6

s Ce

(1.49)(1.49)

edical Ltd, exy shares outsar.

to take into nary shares to dilutive p

ove. Under thd the sharesoan providedares until thes options. Th

imited recou

mber

676,751

676,751

ents

(1.23)(1.23)

xcluding standing

account and the

potential

he plan, s have a d by the e limited here are

rse loan

notes to the financial statements continueD

OncoSil Medical Annual Report 2017

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OncoNotes30 Ju

Note 2 2017

Gran (a) Em29 Ap

* Varannive

2016

Gran Gran Gran Gran

(a) Thshare (b ) Toshare to twoApril 2 (c) Dashares * Varannive

** The

*** Th

Sil Medical s to the finanne 2017

27. Share-b

7

nted 12 Augu

mployees wepril 2014.

ious operatiersary of em

6

nted 8 Octob

nted 13 Janu

nted 13 Janu

nted 10 May

hree employeholders on 2

om Milicevic plan approv

o senior exec2014.

aniel Kenny s respectivel

ious operatiersary of em

ere are 4 sepTranche 1Tranche 2Tranche 3Tranche 4

he vesting co

Tranche 1shareholdTSR is caon the issconsecutiv

Ltd ncial statem

ased payme

ust 2016 (a)

ere issued 4,

onal milestoployment – 5

er 2015 (a)

uary 2016 (b)

uary 2016 (b)

2016 (c)

ees were iss29 April 2014

(CFO and Cved by sharecutives of th

(CEO and Mly as per the

onal milestoployment – 5

parate loan tr shares will

2 shares will 3 shares will 4 shares will

onditions atta

1 - 1,500,000der returns (Talculated usinsue date for ve trading da

ments

ents (contin

Number

4,000,000

,000,000 sha

ones and co5 year loan.

Numbe

2,307,6

) 769,2

) 14,230,7

24,000,0

sued 769,2314.

Company Seceholders on 2e Company

Managing Direxisting em

ones and co5 year loan.

ranches eachvest automavest automavest automavest automa

ached to the 5

0 shares whiTSR) in respeng the averagthe relevant

ays concludin

ued)

r Grant da

0 12/08/20

ares as per t

ontinuous em

r Grant

683 8/10

231 13/01

769 13/01

000 10/05

1 shares res

cretary) was 29 April 2014as per the e

rector) and Dployee loan s

ontinuous em

h representinatically upon atically upon atically upon atically upon

5,000,000 sh

ch will vest aect of holdingge closing sht shares as ng on the rel

38

ate Expdat

016 30/06/

the existing e

mployment

t date E

0/2015 8/

1/2016 13/

1/2016 13/

5/2016 10/

spectively as

issued an a4. An additioexisting emp

Dr Chris Robshare plan a

mployment w

ng 25% of thOncoSilTM toOncoSilTM toOncoSilTM toOncoSilTM to

hares issued

automaticallyg ordinary shhare price ovcompared toevant calcul

piry te

ExePr

/2021

employee lo

with the co

Expiry date

E

/10/2018

/01/2019

/01/2019

/05/2021

per the exis

dditional 4,2nal 10,000,0

ployee loan s

berts (Directoapproved by s

with the com

e total numbtal revenue rtal revenue rtal revenue rtal revenue r

to Tom Milic

y (within 4 yehares in Oncver the perioo the averagation date.

ercise rice $

Faigr

0.22

an share pla

mpany until

Exercise Price

$ 0.13

0.13

0.13

0.22

sting employ

30,769 share000 shares (5share plan a

or) were issushareholders

mpany until

ber of sharesreaching a creaching a creaching a creaching a c

cevic are as

ear period frocoSil Medicalod of 30 consge closing sh

r value at rant date

$ 0.096

an approved

the applica

Fair value agrant date

$ 0.10

0.08

0.08

0.10

ee loan shar

es under exi5,000,000 eaapproved by

ued 14,000,0s 29 April 20

the applica

s as disclosedumulative totumulative totumulative totumulative tot

following;

om date of isl Ltd equallinsecutive tradhare price ov

Vesting condition

*

by sharehol

ant reaches

at e

Vestinconditio

02 *

81 *

81 *

04 **

re plan appr

sting employach ***) wereshareholder

000 and 10,014.

nt reaches

d; tal of at leasttal of at leasttal of at leasttal of at least

ssue) when tng 175% - whing days conver the perio

ns

lders on

the 4th

ng ons

oved by

yee loan e issued rs on 29

000,000

the 3rd

t $10m. t $15m t $30m t $50m

the total here the ncluding od of 30

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OncoNotes30 Ju

Note 2

Set ou 2017 Grant 04/06 2016 Grant 04/06 The 1● 10,● 3,0● 3,0● 3,0 The w The w(2016 Sharefollow Grant 12/0810/0513/0128/1128/1128/11

Sil Medical s to the finanne 2017

27. Share-b

Notwithstadate of iss

Tranche 2below) whcalculatedissue datconsecutivTSR, the T

Tranche 3continuou

ut below are

t date V

6/2013 0

t date E

6/2013 0

9,000,000 op000,000 opti000,000 optio000,000 optio000,000 optio

weighted ave

weighted ave: 1 year).

e options werws:

t date E

8/2016 35/2016 1/2016 1/2014 2/2014 3/2014 2

Ltd ncial statem

ased payme

anding the asue of the Tr

2 – 1,500,000hen the TSRd using the ae for the reve trading dTranche 2 sh

3 – 2,000,000s employme

summaries o

Vesting date

03/06/2017

Expiry date

03/06/2017

ptions aboveions vested ions vest if thons vest if thons vest if th

rage share p

erage remain

re priced usi

Expiry date

30/06/2021 0/05/2021 3/01/2019

28/11/2017 31/12/2019 28/11/2016

ments

ents (contin

chievement anche 1 sha

0 shares whiR in respect average closielevant shardays concludhares will no

0 shares whint with the C

of options gr

Exerc price $

Exerc price $

e have variouimmediately

he Company'he Company'he Company'

price during t

ning contrac

ng a Black-S

Share p at grant $ $ $ $ $ $

ued)

of this TSR, ares.

ich will vest aof holding o

ing share prires as compding on the t vest until th

ch will vest aCompany.

ranted:

Balaise the se the

$0.05 19,019,0

Balaise the se the

$0.05 19,019,0

us vesting coon grant dats shares trads shares trads shares trad

the financial

tual life of o

Scholes prici

price Exedate p

$0.14 $0.15 $0.12 $0.08 $0.08 $0.08

39

the Tranche

automaticallyordinary sharice over the pared to therelevant cal

he expiry of 1

automatically

ance at start of

e year

000,000 000,000

ance at start of

e year

000,000 000,000

onditions as fte; de at or abovde at or abovde at or abov

year was $0

options outst

ing model in

ercise Eprice

$0.22 $0.22 $0.13 $0.13 $0.18 $0.13

e 1 shares w

y (within 4 yeres in the Coperiod of 30e average cculation date1 year from t

y when Mr To

Granted

--

Granted

--

follows:

ve 10 cents fve 15 cents fve 20 cents f

.1185 (2016

tanding at th

puts to deter

Expected volatility

99.00% 99.00% 99.00%

109.80% 109.80% 109.80%

will not vest u

ear period froompany equ consecutiveclosing share. Notwithsthe date of is

om Milicevic

Exercised

(19,000,00(19,000,00

Exercised

for 10 consefor 10 consefor 10 conse

: $0.1675).

he end of the

rmine the fai

Dividendyield

- - - - - -

ntil the expir

om date of isalling 250%

e trading dayre price oveanding the a

ssue of the T

reaches his

Expire forfeite

othe

00) 00)

Expire forfeite

othe

- -

cutive days; cutive days; cutive days.

e financial y

ir value at th

Risk-fr interest 2. 2. 1. 2. 2. 2.

ry of 1 year f

ssue) (but su- where the

ys concludinger the periodachievementranche 2 sha

4th annivers

ed/ Balaed/ the eer the

--

ed/ Balaed/ the eer the

- 19,0- 19,0

and

year was 11

he grant date

ree Fair rate at gra

50% 50% 95% 50% 50% 50%

from the

ubject to e TSR is g on the d of 30 t of this ares.

sary of

ance at end of year

- -

ance at end of year

000,000 000,000

months

e, are as

value ant date

$0.096 $0.104 $0.081 $0.047 $0.056 $0.059

notes to the financial statements continueD

OncoSil Medical Annual Report 2017

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OncoNotes30 Ju

Note 2 TermsThe lolimited(a) the(b) the In addloan, t AccouEquity Equitythe re The cusing of diluand ththe Gcondit The cvestinbest erecogrecog Markeare cosatisfi If equAn advalue If the canceperiod If equexpennew a Note 2 No mGroup

Sil Medical s to the finanne 2017

27. Share-b

s of limited reoan issued ad to the lessoe outstandinge market valu

dition, wherethe company

unting policy y-settled sha

y-settled tranndering of se

cost of equitythe Black-S

ution, the shahe risk free inroup receivetions.

cost of equityng period. Thestimate of tnised in profnised in prev

et conditions onsidered to ed.

ity-settled awdditional expof the share

non-vesting ellation. If thed, any remain

ity-settled awnse is recognaward is treat

28. Events a

atter or circup's operation

Ltd ncial statem

ased payme

ecourse loanare limited ror of: g balance of ue of the loa

e the participy must accep

for share-baare-based co

nsactions areervices.

y-settled trancholes optioare price at nterest rate fes the servic

y-settled tranhe cumulativthe number ofit or loss forvious periods

are taken invest irrespe

wards are mense is reco-based comp

condition is e condition ning expense

wards are canised immedted as if they

after the rep

umstance has, the results

ments

ents (contin

n arrangemenrecourse suc

the loan; ann shares on

pant has elecpt the loan sh

ased paymenmpensation

e awards of

nsactions aren pricing mogrant date afor the term o

ces that entit

nsactions are charge to of awards thr the period is.

nto consideraective of whe

modified, as aognised, ovepensation be

within the cois not withine for the awa

ancelled, theydiately. If a ny were a mod

porting perio

as arisen sins of those op

ued)

nt ch that on th

d that date.

cted for the lhares as full

nts benefits are

shares, or o

e measured odel that takeand expectedof the optiontle the emplo

re recogniseprofit or los

hat are likelys the cumula

ation in deterether or not th

a minimum aer the remainenefit as at th

ontrol of the Gn the controlard is recogn

y are treatedew replacemdification.

od

nce 30 Juneperations, or

40

he repaymen

loan shares settlement o

provided to

options over

at fair valuees into accoud price volatin, together woyees to rec

d as an exps is calculate

y to vest andative amount

rmining fair vhat market c

an expense ining vesting he date of mo

Group or em of the Grou

nised over the

d as if they hament award is

e 2017 that hthe Group's

nt date the r

to be providof the repaym

employees.

shares, that

e on grant dunt the exercility of the un

with non-vestieive paymen

pense with aed based ond the expiredt calculated a

value. Therefcondition has

is recognisedperiod, for aodification.

mployee, the up or emploe remaining

ad vested ons substituted

has significastate of affa

repayment o

ded to the coment obligatio

are provide

ate. Fair valcise price, thnderlying shaing conditionnt. No accou

a correspondn the grant dd portion of at each repo

fore any awas been met,

d as if the many modifica

failure to satoyee and is vesting perio

n the date of d for the can

antly affectedirs in future f

obligation un

ompany in fuon under the

d to employe

ue is indepehe term of thare, the expe

ns that do nount is taken o

ding increasedate fair valuthe vesting

orting date le

ards subject tprovided all

modification hation that inc

tisfy the condnot satisfied

od, unless th

cancellationcelled award

d, or may sigfinancial yea

der the loan

ull satisfactio loan.

ees in excha

endently detee option, theected dividet determine wof any other

e in equity oue of the awperiod. The

ess amounts

to market coother conditi

has not beencreases the t

dition is treatd during the e award is fo

n, and any red, the cance

gnificantly afrs.

n will be

on of the

ange for

ermined e impact nd yield whether

r vesting

over the ward, the

amount already

onditions ions are

n made. total fair

ted as a vesting

orfeited.

maining lled and

ffect the

45

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OncoDirect30 Ju

In the ● t

C ● t

I ● t

2 ● t

a The d Signe On be

_____Dr ChNon-E 24 AuSydne

Sil Medical tors' declarane 2017

directors' op

the attachedCorporations

the attached nternational

the attached 2017 and of

there are reaand payable.

irectors have

d in accorda

ehalf of the d

__________hris Roberts Executive Ch

ugust 2017 ey

Ltd ation

pinion:

financial stas Regulations

financial staAccounting

financial staits performan

asonable gro.

e been given

ance with a re

irectors

___________

hairman

atements ans 2001 and o

atements andStandards B

atements annce for the fi

unds to belie

n the declara

esolution of d

____

nd notes comother mandat

d notes compBoard as des

d notes givenancial year

eve that the C

tions require

directors ma

41

mply with thetory professi

ply with Intercribed in not

e a true and r ended on th

Company wi

ed by section

de pursuant

e Corporationonal reportin

rnational Finte 2 to the fin

fair view of hat date; and

ill be able to

n 295A of the

to section 29

ns Act 2001ng requireme

ancial Reponancial statem

the Group's d

pay its debts

e Corporation

95(5)(a) of th

, the Accounents;

rting Standaments;

financial po

s as and whe

ns Act 2001.

he Corporatio

nting Standa

rds as issue

osition as at

en they beco

ons Act 2001

ards, the

d by the

30 June

ome due

1.

Directors’ Declaration

OncoSil Medical Annual Report 2017

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Crowe Horwath Sydney is a member of Crowe Horwath International, a Swiss verein. Each member of Crowe Horwath is a separate and independent legal entity. Liability limited by a scheme approved under Professional Standards Legislation other than for the acts or omissions of financial services licensees.

42

Crowe Horwath Sydney ABN 97 895 683 573 Member Crowe Horwath International

Audit and Assurance Services

Level 15 1 O'Connell Street Sydney NSW 2000 Australia

Tel +61 2 9262 2155 Fax +61 2 9262 2190 www.crowehorwath.com.au

Independent Auditor’s Report to the Members of OncoSil Medical Ltd

Report on the Audit of the Financial Report

Opinion We have audited the financial report of OncoSil Medical Ltd (the Group), which comprises the statement of financial position as at 30 June 2017, the statement of profit or loss and other comprehensive income, the statement of changes in equity and the statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the directors’ declaration. In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including:

(a) giving a true and fair view of the Group’s financial position as at 30 June 2017 and of its financial performance for the year then ended; and

(b) complying with Australian Accounting Standards and the Corporations Regulations 2001. Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key Audit Matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

inDepenDent auDitor’s report

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Key Audit Matter How we addressed the Key Audit Matter

Share based payments – Notes 14 and Note 27

The Group’s ‘Employee Share Plan’ is designed as an incentive for senior managers and key management personnel, including directors. The share based payments expense for the current year is $1.4m. We have identified this as significant area as share based payments results in a significant expense included in the statement of profit or loss and other comprehensive income and includes judgements in assessing the fair value. Share based payments also contribute a significant portion of the annual remuneration for the ‘Key Management Personnel’.

We performed the following key procedures;

Reviewed management calculations for share-based payments including areas of judgement in assessing fair value;

Reviewed relevant terms and conditions and supporting issue documents;

Reviewed underlying treatment in accordance with the requirements of AASB 2, including adequate disclosures.

Other Information The directors are responsible for the other information. The other information comprises the information included in the Group’s annual report for the year ended 30 June 2017, but does not include the financial report and our auditor’s report thereon. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Directors for the Financial Report The directors of the Group are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards, IFRS and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.

inDepenDent auDitor’s report continueD

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44

Auditor’s Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: http://www.auasb.gov.au/auditors_files/ar2.pdf . This description forms part of our auditor’s report.

Report on the Remuneration Report

Opinion on the Remuneration Report We have audited the Remuneration Report included as part of the directors’ report for the year ended 30 June 2017. In our opinion, the Remuneration Report of OncoSil Medical Ltd, for the year ended 30 June 2017, complies with section 300A of the Corporations Act 2001.

Responsibilities The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. CROWE HORWATH SYDNEY JOHN HAYDON Senior Partner Dated at Sydney 24 August 2017

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shareholDer information

Oncosil Medical LtdThe shareholder information set out below was applicable as at 11 September 2017.

Distribution of equitable securitiesAnalysis of number of equitable security holders by size of holding:

# of holders of

Holdings Rangesordinary shares

options over ordinary shares

1-1,000 93 01,001-5,000 232 05,001-10,000 401 010,001-100,000 1,468 0100,001-9,999,999,999 518 0Totals 2,712 0

Holding less than a marketable parcel 343 0

Equity security holdersTwenty largest quoted equity security holdersThe names of the twenty largest security holders of quoted equity securities are listed below: Ordinary shares

Holder Name # held% of total

shares issuedUBS NOMINEES PTY LTD 34,897,415 7.16%WEBINVEST PTY LTD <OLSB UNIT A/C> 28,432,102 5.83%MR DANIEL KENNY 26,000,000 5.33%TISIA NOMINEES PTY LTD <HENDERSON FAMILY A/C> 20,278,090 4.16%BANNABY INVESTMENTS PTY LTD 19,000,000 3.90%DENLIN NOMINEES PTY LTD 13,763,070 2.82%ROJO NERO CAPITAL PTY LTD 11,250,000 2.31%NEWTONMORE BIOSCIENCES PTY LTD 11,016,547 2.26%MR CHRISTOPHER GRAHAM ROBERTS 10,000,000 2.05%CITICORP NOMINEES PTY LIMITED 9,617,840 1.97%WESTCAP PTY LTD 6,657,687 1.37%SUNSET CAPITAL MANAGEMENT PTY LTD <SUNSET SUPERFUND A/C> 6,000,000 1.23%STRUCTURE INVESTMENTS PTY LTD <ROGERS FAMILY A/C> 5,312,532 1.09%MR TOM MILICEVIC 5,000,000 1.03%MR ASHISH SOMAN 5,000,000 1.03%MR DAVID JAMES 5,000,000 1.03%STRUCTURE INVESTMENTS PTY LTD <ROGERS FAMILY A/C> 5,000,000 1.03%MR ADRIAN DARBY 4,999,001 1.03%MR MICHAEL WARRENER 4,000,000 0.82%J P MORGAN NOMINEES AUSTRALIA LIMITED 3,694,831 0.76%

234,919,115 48.19%Total of Securities 487,455,468

Unquoted equity securitiesOptions over ordinary shares issued # of shares # of holders

Not applicable 0 0

Substantial holdersSubstantial holders in the Company are set out below:

REGAL FUNDS MANAGEMENT PTY LIMITED 47,707,780 9.79%WEBINVEST PTY LTD <OLSB UNIT A/C> 28,563,958 5.86%MR DANIEL KENNY 26,000,000 5.33%

Voting rightsThe voting rights attached to ordinary shares are set out below:Ordinary sharesOn a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one vote.There are no other classes of equity securities.

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corporate Directory

OncoSil Medical Limited ABN 89 113 824 141 www.oncosil.com.au

Directors

Dr Chris Roberts Non-Executive Chairman Dr Roger Aston Non-Executive Director Mr Daniel Kenny CEO and Managing Director Mr Martin Cross Non-Executive Director

company secretary

Tom Milicevic CFO and Company Secretary

registered office

Suite 402, Level 4, 50 Berry St North Sydney NSW 2060 T: +61 2 9223 3344

Bankers

Westpac Banking Corporation 341 George St Sydney NSW 2000

auditors

Crowe Horwath Sydney Level 15, 1 O’Connell St Sydney NSW 2000 T: +61 2 9262 2155

legal counsel

K&L Gates Level 25, South Tower, 525 Collins St Melbourne VIC 3000 T: +61 3 9205 2000

Davies Collison Cave Level 14, 255 Elizabeth St Sydney NSW 2000 T: +61 2 9293 1000

stock exchange

OncoSil Medical Limited shares are listed on the Australian Securities Exchange ASX code: OSL

share registry

Boardroom Pty Ltd Level 12, 225 George St Sydney NSW 2000 T: 1300 737 760

annual general meeting

The 2017 AGM of OncoSil Medical Limited will be at 11.00am (AEST) on Wednesday, 25 October 2017 at the offices of K&L Gates Level 31, 1 O’Connell Street, Sydney, NSW, 2000

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OncoSil Medical Limited www.oncosil.com.au T: +61 2 9223 3344 F: +61 2 9252 3988

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