ASX ANNOUNCEMENT 26 February 2018 · ASX ANNOUNCEMENT 26 February 2018 MedAdvisor HY18 Interim...

ASX ANNOUNCEMENT

26 February 2018

MedAdvisor HY18 Interim Results

Record revenue of $3.25m, more than doubling 1H FY18 revenue

Highlights

• Revenue from continuing operations totalled $3.25m, representing a +110% increase on the

corresponding half year period

• An increase in revenue driven by growth of SaaS revenue from pharmacy subscriptions and a

growing user-based revenue stream – now accounting for 39% of operating revenue

• Domestic growth continues across the market, with users reaching 960k vs 630k in 1H FY17

• A $9.5m equity investment from healthcare giant EBOS strengthened the balance sheet

• The new PlusOne platform rolling out to pharmacies nationwide and new offerings are

expected to further drive user-based revenue growth

• MOU with EBOS subsidiary HPS to open a potentially significant new market opportunity to

reduce the incidence of readmissions in hospitals

MedAdvisor Limited (ASX: MDR, the Company) has today released its Appendix 4D and is pleased

to provide its Interim Financial Report for the 6-month period ending 31 December 2017 (1H FY18).

Financial Overview

MedAdvisor reports record revenue from continuing ordinary activities of $3.25m, up 110% on the

prior corresponding period and setting the business up for a strong FY18 year-end. Total revenue

was $3.31m and the Company continues to operate a high gross margin of 87% growing in line

with prior periods and management expectations.

The Company reported a net loss of $2.26m for the period vs $2.04m for HY17. The loss is attributed

to growth in operating costs associated with scaling the business and establishing new customer

offerings. Gross Margin of 87% exceeds the fixed operating costs which are currently 85% of

operating revenues (versus 108% in the prior corresponding period). Total expenditure totalled

$5.58m for the half year period.

SaaS revenue from pharmacy subscribers grew by 65%, due to new pharmacies on-boarding and

an increase in monthly subscription fees charged due to enhancements in the technology and

additional services and capabilities added. User-based revenue from Patient Engagement

Programs (PEPs), SMS services, booking fees and the increase of transactional fees in relation to

Professional Services booked now account for 39% in revenue vs 32% in the prior corresponding

period. User based revenue has grown by a lower percentage than SaaS in H1FY18.

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H1 2017 Revenue Breakdown v H1 2018 Revenue Breakdown

User-based revenue continues to increase in dollar terms supported by connected patient growth

and as the Company seeks out new opportunities to add new capabilities that enable its

pharmacy customers to increase their revenue opportunities.

Operational Overview

End HY17 End HY18 % Change

Total connected patients at period end 630,000 960,000 +52%

Average number of patients per pharmacy 250 ~312 +25%

Value of scripts processed via TTR/GP Connect $56m $126m +125%

Number of Patient Engagement Programs 18 26 +44%

The Company reported that over 960,000 patients were connected to the platform as at 31

December 2017. This represents only ~8% of patients with a chronic disease in Australia (AIHW 2015).

Revenue from Patient Engagement Programs (PEPs) also increased by 87% compared to the same

period last year. The growth of the patient user base continues to drive Australia’s largest

manufacturers to MedAdvisor with a total of 26 programs contracted to the platform as at end

December 2017.

Patients per pharmacy are increasing, indicating the support from pharmacies to promote the

app to its customers. Furthermore, the engagement from the patient user base is growing with the

Tap-to-Refill function continuing to show strong patient usage.

In H1 2018 a total of 3.16m scripts were processed, representing an annualised rate of >$250 million

in script value (~$126m processed H1 FY18) through the platform. This compares to $110m

annualised script value ($56m processed) in H1 FY17.

$0m

$50m

$100m

$150m

$200m

$250m

$300m

2H FY16 1H FY17 2H FY17 1H FY18

Tap to Refill - Annualised Script Value

Source: MedAdvisor

Source: MedAdvisor

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Technology Enhancements Driving Revenue Opportunities

PlusOne is a patient communication, professional services and pharmacy marketing platform. The

launch of the PlusOne platform and its new Health Services Hub that is now being rolled out to

MedAdvisor’s pharmacy network will help pharmacies drive up their services income and allow

MedAdvisor to bring new revenue opportunities to pharmacies which in turn will drive additional

revenue.

The potential of PlusOne is in the early phases and the Company expects to see an uplift in both

usage and transactional revenue as pharmacies across its network unlock the value available to

them from the platform. The increased capabilities have also enabled MedAdvisor to increase its

subscription fees by ~20%, driving its SaaS revenue.

International Expansion

Two regional advisors joined the MedAdvisor business to identify and evaluate market entry

strategies in the UK and US. Both markets represent substantial opportunities, with no dominant

digital medication management technology, significant patient populations and rising healthcare

costs. Mr Jamal Butt (ex Boots & Lloyds) and Mr Keith Kiarsis (ex Adheris) continue to develop

opportunities with leading market participants in the US and the UK to determine the best market

entry strategy for MedAdvisor and the most appropriate path to market. The evaluation phases

are well progressed, and the Company looks forward to providing an update to the market when

appropriate.

Corporate update

MedAdvisor and EBOS Group Limited entered into a number of commercial agreements to enable

MedAdvisor to leverage EBOS’ healthcare portfolio to drive customer acquisition and new revenue

opportunities. A Heads of Agreement with TerryWhite Chemmart has cemented MedAdvisor’s

position as the preferred provider to its pharmacy network and a Memorandum of Understanding

with EBOS’ healthcare communications business, Zest, will see MedAdvisor become the preferred

digital distribution channel for the delivery of digital health programs.

The partnership also introduced a significant new and important channel, through an MOU with

EBOS owned HPS, Australia’s largest provider of outsourced pharmacy services to hospitals.

MedAdvisor is working closely with HPS and Zest to establish a comprehensive patient discharge

program across its hospital pharmacies that could result in more than 5,000 patients a week being

offered MedAdvisor’s services.

The Company continues to work closely with all parties to sign formal binding agreements, which

will be announced to the market in due course.

Outlook

MedAdvisor has a significant opportunity for expansion within the hospital channel. Through its

strategic partnership with EBOS, the Company has a strategic partner in HPS. HPS handle in excess

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of 250,000 discharges p.a. across a number of private hospitals. The Company is now developing

a hospital admission and discharge product and process that will leverage MedAdvisor’s

capabilities to connect with their primary healthcare providers and help patients increase their

adherence. Once fully rolled out, MedAdvisor expects this initiative to significantly reduce the

number of hospital readmissions at these hospitals, whilst growing connected patients.

Management are focused on scaling the business and will continue to reinvest in growth of the

Company. The new opportunities in the hospital channel are exciting and will in turn introduce new

revenue opportunities once MedAdvisor has a product in market. The Company is well funded

following the $9.5m investment from EBOS and closed the half year with $12.3m in cash.

---ENDS---

For more information

Carlo Campiciano

CFO & Comany Secretary

Tel: +61 3 9095 3036

[email protected]

Jennifer Duraisingam

Corporate Communications Manager

Tel: +61 3 9095 3036

[email protected]

About MedAdvisor

MedAdvisor is a world class medication management platform focused on addressing the gap

and burden of medication adherence. Founded with a desire to simplify medication

management, the highly automated and intuitive Australian software system connects patients to

their local pharmacy and GP, providing them with real time access to their personal medication

records. Available free on mobile and internet devices, the platform also incorporates a variety of

valuable and convenient features including reminders and pre-ordering of medications, which

together improves adherence by approximately 20%.

Since launching in 2013, MedAdvisor has welcomed over 960,000 users through its connections with

~50% of pharmacies across Australia.

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MEDADVISOR LIMITED

Appendix 4D

Half-year Report

Page 1

1. Company Details

Name of Entity: MEDADVISOR LIMITED

ABN: 17 145 327 617

Reporting period: For the half-year ended 31 December 2017

Previous period: For the half-year ended 31 December 2016

2. Results for Announcement to the Market

to

Loss from ordinary activities after tax attributable to the

owners of MedAdvisor Limited up 10.8% to (2,263)

Loss for the half-year attributable to the owners of

MedAdvisor Limited up 10.8% to (2,263)

Dividends

Not applicable

Comments:

Total Revenue Breakdown:

Ordinary revenue 3,258 1,548

Patients activated on the MedAdvisor Platform

Average patients per pharmacy

The above excludes metrics related to Chemist Warehouse stores that are currently subscribed to the

Healthnotes service.

The loss of the consolidated entity after providing for income tax was $2,264,654 (31 December, 2016

$2,042,639)

6 months

31-Dec-17

6 months

31-Dec-16

Other income (R&D Tax Concession & Interest)

-

-

3,258

28

28

1,577

Non financial metrics:

Enrolled pharmacies

up > 9% > 2,665

$'000

3,258

Revenues from ordinary activities up 110.4% 110.4%

up > 52% > 960,000

up > 25% > 312

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MEDADVISOR LIMITED

Appendix 4D

Half-year Report

Page 2

3. Net Tangible Assets

Net tangible assets per ordinary security 0.8757 0.5296

4. Control Gained or Lost over Entities

Control Gained

Not applicable

Control Lost

Not applicable

5. Additional Dividend Information

Not applicable

6. Dividend Reinvestment Plans

Not applicable

7. Details of Associates and Joint Venture Entities

Not applicable

8. Audit Qualification or Review

The financial statements were subject to a review by the auditors and the review report is attached as part of

the Interim Report.

9. Attachments

The Interim Report of MedAdvisor Limited for the half-year ended 31 December, 2017 is attached.

10. Signed

Robert Read Director

Camberwell, Victoria Dated: 22 February 2018

Reporting

period

Cents

Previous

period

Cents

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MEDADVISOR LIMITED ABN 17 145 327 617

CONDENSED FINANCIAL REPORT FOR HALF YEAR ENDED 31 DECEMBER 2017

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CONDENSED FINANCIAL REPORT FOR HALF YEAR ENDED 31 DECEMBER 2017

CONTENTS Page

Directors’ Report 1

Auditor’s Independence Declaration 4

Condensed Statement of Profit or Loss and Other Comprehensive Income

5

Condensed Statement of Financial Position 6

Condensed Statement of Changes in Equity 7

Condensed Statement of Cash Flow 8

Notes to the Condensed Financial Statements 9

Directors' Declaration 15

Independent Auditor's Review Report 16

The Condensed financial report is presented in Australian currency.

Its registered office and principal place of business is:

The registered office is: The principal place of business is:

MedAdvisor Limited MedAdvisor Limited

Level 4 Level 4

969 Burke Road 969 Burke Road

CAMBERWELL VIC 3124 CAMBERWELL VIC 3124

A description of the nature of the consolidated entity's operations and its principal activities are included in the directors' report, which is not part of the financial statements.

The financial statements were authorised for issue in accordance with a resolution of directors on 22 February 2018.

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Directors’ Report

The names of the company's directors who held office during or since the end of the financial half-year are:

Mr Peter Bennetto

Mr Robert Read

Mr Joshua Swinnerton

Mr Jim Xenos

Ms Sandra Hook

Principal Activities

The principal activities of the Entity continue to be the enhancement and growth of the MedAdvisor

medication and adherence platform. The MedAdvisor platform is focused on improving health

outcomes by connecting health professionals with their patients using mobile and web technologies.

Review of Operations

During the current period the business has achieved the following important milestones:

1. In October 2017, EBOS Group Limited (EBOS) invested $9.5m to accelerate the product development and growth of the business. A key opportunity is to develop the relationship with HPS Services Pty Ltd (HPS) a fully owned subsidiary of EBOS; to assist patients with their transitions to and from hospital.

2. MedAdvisor was announced as the preferred provider of Terry White Chemmart, one of the largest pharmacy groups in Australia by store numbers. MedAdvisor was also announced the preferred digital provider for Zest Healthcare Communications and HPS to help reduce readmissions to hospital. These agreements will be completed in H2.

3. MedAdvisor achieved a record H1 FY18 revenue of over $3.26m achieved.

4. MedAdvisor now boasts over 960,000 patients connected via its software platforms.

5. MedAdvisor launched PlusOne pharmacy Software that adds new services and capabilities to pharmacy including the ability to grow their services revenue leveraging the platform.

Revenue Drivers

• MedAdvisor now has over 960,000 patients connected to the platform. These patients can receive reminders and order their medications at their favourite pharmacies. SMS reminders generate revenue and margin. In addition, they can now link in with their GPs to order scripts.

• Growth of Patient Engagement Programs (PEPs) has continued with new large pharma companies signing on and others renewing for their third year. The Health Services Hub will allow these businesses to augment important safety information provided digitally with pharmacist led face to face interventions where appropriate.

• The pharmacy market is fragmented with over 3500 owners for ~5400 pharmacies. Meaning the channel has been hard to engage with for program funders. MedAdvisor now has over 50% of the pharmacy market as subscribers to its software which opens new opportunities for MedAdvisor to bring new health services to be delivered via pharmacy.

• User based revenue is now 39% of total revenue, up from 32% on the corresponding period last year.

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• Revenue growth of 110% is increasing faster than operating cost growth of 53%.

• Fixed operating expenses have dropped from 108% of operating revenues in the corresponding period last year to 85% of operating revenues in current reporting period. Similarly, expenditure on growth initiatives has fallen from 111% of operating revenues in the corresponding period in 2016 to 73% in 2017 December half year.

Sales and Marketing Progress

• MedAdvisor has continued to work with top tier pharmaceutical companies to help provide quality use of medicines information to patients to improve adherence to medication and health outcomes. There are approximately 26 programs contracted to MedAdvisor across 14 companies. MedAdvisor has also recently moved into 3rd year of contracts with some manufacturers.

International Development

• MedAdvisor appointed Mr Jamal Butt as Commercial Head of MedAdvisor in the UK. Mr Butt has extensive experience as former Head of Pharmacy at Boots and running a large business within Lloyds and he will assist the company assess partnership opportunities for market entry.

• Mr Keith Kiarsis was appointed as USA Country Head to also pursue and assess the right opportunities in this market. The USA market is large and diverse so careful consideration about the best opportunities is important.

Technology Development

MedAdvisor appointed Dr David Chatterton as CTO, who was previously CTO at Aconex (ASX:ACX). New capability is being developed to assist the business integrate with others and scale more effectively.

Launch of PlusOne is a major step forward in both the technical and service capabilities of the company. It allows pharmacists to be more effective in the way they interact with their customers when they are both in store or at home. MedAdvisor will be able to bring new programs to be run through pharmacy that finally allows funders to consider pharmacy as a viable channel to run services to improve healthcare outcomes.

Significant Changes in State of Affairs

On 23 October 2017, the Company completed a capital raising of $9,500,000 through the issue of

165,217,391 shares at $0.0575c to EBOS Group Limited by way of a private placement. The proceeds of this

issue will be used to accelerate the strategic growth initiatives that will be undertaken over the coming 18

to 24 months.

Future Developments

MedAdvisor will continue to evolve its software for Patients, Pharmacies and GP’s. Following the EBOS

investment, MedAdvisor will now invest into developing a robust hospital admission and discharge process

in collaboration with its partners that will aim to reduce readmissions to hospital.

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Events Occurring after the Reporting Period

There are no matters or circumstances that have arisen since the end of the half-year which significantly

affected or could significantly affect the operations of the Company, the results of those operations, or the

state of affairs of the Company in future financial years.

Auditor's Independence Declaration

A copy of the auditor's independence declaration as required under section 307C of the Corporations Act

2001 is included on the following page.

Signed in accordance with a resolution of the Directors:

Robert Read

Director

Camberwell, Victoria

Dated: 22 February, 2018

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AUDITOR’S INDEPENDENCE DECLARATION As lead auditor for the review of the financial report of MedAdvisor Limited for the half year ended 31 December 2017, I declare that, to the best of my knowledge and belief, there have been no contraventions of:

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

(ii) any applicable code of professional conduct in relation to the review.

RSM AUSTRALIA PARTNERS

P W FRASER Partner Melbourne, VIC 22 February 2018

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CONDENSED STATEMENT OF PROFIT OR LOSS

AND OTHER COMPREHENSIVE INCOME

2017 2016

31-Dec-17 31-Dec-16

Notes $ $

Revenues from continuing operations 7 3,257,598 1,548,138

Other revenue 7 53,259 64,664

Direct expenses 8 (402,385) (259,452)

Development costs (395,861) (67,516)

Employee benefits expenses 8 (2,892,490) (1,841,359)

Marketing expense (1,226,650) (625,178)

Depreciation and amortisation expenses (103,953) (68,711)

Directors fees 8 (90,197) (95,802)

Other expenses (457,976) (653,161)

Finance costs 8 (4,785) (44,261)

Profit / (loss) before income tax (2,263,439) (2,042,639)

Income tax (expense) / income - -

Profit / (loss) for the year (2,263,439) (2,042,639)

Other comprehensive income - -

Total comprehensive income (loss) for the period (2,263,439) (2,042,639)

Loss per Share

Basic loss per share 4 (0.0020)$ (0.0026)$

Diluted loss per Share 4 (0.0020)$ (0.0026)$

Comparative figures are for the half year ended 31 December 2016

The above Condensed statement of profit or loss and other comprehensive income should be read in

conjunction with the accompanying notes.

Consolidated

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CONDENSED STATEMENT OF FINANCIAL POSITION

2017 2017

31-Dec-17 30-Jun-17

Notes $ $

ASSETS

Current Assets

Cash and Cash Equivalents 9 12,291,739 4,834,660

Trade and Other Receivables 10 1,140,909 429,636

Other Assets 11 160,243 182,644

Total Current Assets 13,592,890 5,446,940

Non-Current Assets

Other Assets 11 61,357 -

Fixed Assets 12 200,756 189,517

Intangible Assets 13 5,392,447 5,463,139

Total Non-Current Assets 5,654,560 5,652,656

Total Assets 19,247,450 11,099,596

LIABILITIES

Current Liabilities

Trade and Other Payables 14 1,166,940 1,016,210

Income in Advance 15 673,142 285,065

Employee Benefits 16 454,332 394,444

Total Current Liabilities 2,294,414 1,695,719

Non-Current Liabilities

Employee Benefits 16 60,857 49,585

Total Non-Current Liabilities 60,857 49,585

Total Liabilities 2,355,271 1,745,304

Net Assets 16,892,179 9,354,292

EQUITY

Contributed Equity 25,820,635 16,184,549

Reserves 1,424,513 1,259,273

Retained Profits / (Accumulated Losses) (10,352,969) (8,089,530)

Total Equity 16,892,179 9,354,292

Comparative figures are as at 30 June 2017

The above Condensed statement of financial position should be read in conjunction with the

accompanying notes.

Consolidated

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CONDENSED STATEMENT OF CHANGES IN EQUITY

Contributed Share Options Retained Total

Equity Reserve Earnings Equity

Notes $ $ $ $

Balance 1 July 2017 16,184,549 1,259,274 (8,089,530) 9,354,293

Ordinary Shares Issued 9,518,375 9,518,375

Capital Raising Costs (net of GST) (94,089) (94,089)

Share Options Issued 377,040 377,040

Share Options Exercised 211,800 (211,800) -

(2,263,439) (2,263,439)

Balance 31 December 2017 25,820,635 1,424,514 (10,352,969) 16,892,179

Balance 1 July 2016 6,508,117 615,914 (4,659,603) 2,464,428

Ordinary Shares Issued 10,200,000 10,200,000


Share Options Issued 250,946 250,946

(2,042,639) (2,042,639)

Balance 31 December 2016 16,171,050 866,860 (6,702,242) 10,335,668


Consolidated

Consolidated

The above Condensed statement of changes in equity should be read in conjunction with the accompanying

notes.

Transactions with owners in their capacity as

owners:

Transactions with owners in their capacity as

owners:

Total comprehensive income for the half-

year

Total comprehensive income for the half-

year

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STATEMENT OF CASH FLOWS

2017 2016

31-Dec-17 31-Dec-16

Notes $ $

Cash Flows From Operating Activities

Receipts from customers (inclusive of GST) 3,068,325 2,066,022

Payments to suppliers and employees (inclusive of GST) (5,043,659) (3,596,706)

Interest received 52,612 36,009

Interest paid - (924)

Income tax paid - (3,924)

Net cash inflow (outflow) from operating activities (1,922,722) (1,499,523)

Cash Flows From Investing Activities

Payments for property, plant and equipment (48,950) (11,110)

Payments for acquisition of Health Enterprises 2 Pty Ltd, net

of cash acquired 18 - (2,819,797)

Net cash outflow from investing activities (48,950) (2,830,907)

Cash Flows From Financing Activities

Proceeds from new share issue 9,500,000 8,000,000


Payments to related parties - (94,405)

Net cash (outflow) inflow from financing activities 9,428,750 7,368,527

Net increase/(decrease) in cash held 7,457,078 3,038,097

Cash and cash equivalents at the beginning of the year 4,834,660 2,888,990

Cash and cash equivalents at the end of the year 9 12,291,739 5,927,087


The above Condensed statement of cash flows should be read in conjunction with the accompanying

notes.

Consolidated

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NOTES TO THE CONDENSED FINANCIAL STATEMENTS

1. General

These financial statements represent those of MedAdvisor Limited (‘MedAdvisor’ or the ‘Company’) and the

entities it controls for the half-year ended 31 December 2017.

2. Basis of preparation

The half-year financial report is a general purpose financial report prepared in accordance with the

requirements of the Corporations Act 2001 and AASB 134 Interim Financial Reporting. Compliance with AASB

134 ensures compliance with International Financial Reporting Standard IAS 34 ‘Interim Financial Reporting’.

The half-year report does not include all of the information required in annual financial statements in

accordance with Australian Accounting Standards, and should be read in conjunction with the financial

statements of the Company for the year ended 30 June 2017 and any public announcements made by the

Company during the half-year in accordance with continuous disclosure requirements arising under the

Australian Securities Exchange Listing Rules and the Corporations Act 2001.

3. Critical accounting estimates and judgements

The directors evaluate estimates and judgments incorporated into the financial statements based on

historical knowledge and best available current information. Estimates assume a reasonable expectation of

future events and are based on current trends and economic data, obtained both externally and within the

company.

4. Earnings per Share

Both the basic and diluted loss per share have been calculated using the loss attributable to shareholders

of MedAdvisor Limited as the numerator, i.e. no adjustments to profits were necessary during the six (6)

month period to 31 December 2017.

The weighted average number of shares for the purposes of the calculation of diluted earnings per share can

be reconciled to the weighted average number of ordinary shares used in the calculation of basic earnings

per share as follows:

6 months to 6 months to

31-Dec-17 31-Dec-16

1,136,878,659 780,252,730

1,222,175,527 836,669,366

Weighted average number of shares used in basic earnings per

share

Weighted average number of shares used in diluted earnings

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NOTES TO THE CONDENSED FINANCIAL STATEMENTS – cont’d

5. Issued Capital

6. Operating segments

The Board has determined that the Company presently has two reporting segments. The first being the

business activities of the MedAdvisor medication management and adherence platform, including the

operations of the newly acquired Health Enterprises 2 Pty Ltd, and the second being the corporate function

associated with being an ASX listed company. The Board monitors the Company based on actual versus

budgeted revenue and expenditure incurred. This internal reporting framework is the most relevant to assist

the Board with making decisions regarding the Company and its ongoing activities.

31-12-17 31-12-17

# $

Shares

Balance at 30 June, 2017 945,381,426 16,184,549

New shares issued by MedAdvisor Limited for cash 165,217,391 9,500,000

Shares Issued as Consideration for Services 612,500 18,375

Read Rights Exercised 7,000,000 210,000

Employee Share Options Exercised 66,666 1,800

195,000,000 -

Share issue transaction costs, net of tax - (94,088)

Balance at end of reporting period 1,313,277,983 25,820,635

Options

Balance at 30 June, 2017 85,203,333

MedAdvisor Zero Cost Options under Employee Incentive Plan 12,860,000

5,000,000

Employee Incentive Plan Exercised (66,666)

Employee Incentive Plan Expired (240,000)

(7,000,000)

Balance at end of reporting period 95,756,667

R Read Performance Rights vested

Conversion of Founder Performance Shares to Ordinary Shares

R Read Performance Rights Exercised

MedAdvisor Corporate Total

$ $ $

2017

Revenues 3,310,857 - 3,310,857

Net Loss before Tax 1,770,116 494,538 2,264,654

Segment Assets 19,221,074 26,376 19,247,450

Total Assets 19,247,450

Segment Liabilities 2,330,134 25,137 2,355,271

Total Liabilities 2,355,271

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6. Operating segments – cont’d

7. Revenue

8. Expenses

MedAdvisor Corporate Total

2016

Revenues 1,612,489 312 1,612,801

Net Loss before Tax 1,665,504 377,135 2,042,639

Segment Assets 12,228,320 140,407 12,368,727

Total Assets 12,368,727

Segment Liabilities 2,029,599 3,461 2,033,060

Total Liabilities 2,033,060

6 months to 6 months to

31-Dec-17 31-Dec-16

$ $

From continuing operations

Sale of services 3,257,598 1,548,138

3,257,598 1,548,138

Other Revenue

Interest received 53,259 36,278

Sundry income - R&D Tax Concession - 28,386

53,259 64,664

Profit before income tax includes the following

specific expenses:

Direct Costs:

Platform access fees 52,392 210,857

Direct transaction costs 269,605 3,231

Managed services costs for the MedAdvisor Platform 80,388 45,363

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8. Expenses – cont’d

9. Cash and Cash Equivalents

10. Trade and Other Receivables

Employee Benefits Expenses:

Development 1,204,290 661,906

Marketing 858,039 600,876

Business development - international 78,381 28,925

Administration 374,542 298,706

Governance 90,197 95,802

Share based payments 377,238 250,946

2,982,687 1,937,161

Finance costs:

Financing costs - 41,827

Other bank charges 4,626 1,754

Interest expense 158 680

4,785 44,261

as at as at

31-Dec-17 30-Jun-17

$ $

Cash on Hand 303 303

Cash at Bank 12,121,207 4,779,885

Term Deposit 170,229 54,472

12,291,739 4,834,660

Trade Debtors 979,227 422,473

Other Debtors 161,681 7,163

1,140,909 429,636

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11. Other Assets

12. Property, Plant and Equipment

13. Intangible Assets

Current

Prepayments 160,243 137,980

Work in progress - 19,054

Security Deposits - 25,610

160,243 182,644

Non Current

Prepayments 61,357 -

61,357 -

Leasehold Improvements

Cost 156,190 155,140

Accumulated Depreciation (55,048) (39,534)

Written Down Value 101,142 115,606

Office Furniture & Equipment

Cost 136,797 99,655



Total Written Down Value 200,756 189,517

Goodwill

Cost 4,013,868 4,013,868

Intellectual property

Cost 113,261 113,260

Accumulated Amortization (40,500) (36,000)


Software

Cost 1,470,000 1,463,692


Written Down Value 1,305,819 1,372,011

Total Written Down Value 5,392,447 5,463,139

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14. Trade and Other Payables

15. Net Income in Advance

16. Employee Entitlements

17. Contingent Liabilities

There have been no changes to contingent liabilities or contingent assets since the last annual reporting

date.

18. Events after the Reporting Date

There are no matters or circumstances that have arisen since the end of the half-year which significantly

affected or could significantly affect the operations of the Company, the results of those operations, or the

state of affairs of the Company in future financial years.

End of Notes

Trade Creditors 351,460 379,810

Other Creditors & Accruals 815,480 636,400

1,166,940 1,016,210

Gross Pharmacy Subscriptions in Advance 478,323 128,294

Patient Engagement Programs 194,819 156,771

673,142 285,065

Current

Accrued Annual Leave 389,452 394,444

Accrued Long Service Leave 64,880 -

454,332 394,444

Non Current

Accrued Long Service Leave 60,857 49,585

60,857 49,585

Total Employee Entitlements 515,189 444,029

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DIRECTORS’ DECLARATION

The directors of the company declare that:

1. The financial statements and notes, as set out on page 5 to 14, are in accordance with the Corporations

Act 2001 and:

i. comply with Accounting Standards; and

ii. give a true and fair view of the financial position as at 31 December 2017 and of the performance

for the 6 months on that date of the company.

2. In the directors’ opinion, there are reasonable grounds to believe that the company will be able to pay

its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Board of Directors.

Robert Read Director Camberwell, Victoria

Dated: 22 February 2018

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INDEPENDENT AUDITOR’S REVIEW REPORT

TO THE MEMBERS OF

MEDADVISOR LIMITED

We have reviewed the accompanying half-year financial report of MedAdvisor Limited which comprises the condensed statement of financial position as at 31 December 2017, the condensed statement of profit or loss and other comprehensive income, condensed statement of changes in equity and condensed statement of cash flows for the half-year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration of the consolidated entity comprising the company and the entities it controlled at the half-year end or from time to time during the half-year.

Directors’ Responsibility for the Half-Year Financial Report

The directors of the company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated entity’s financial position as at 31 December 2017 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of MedAdvisor Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

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Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001. We confirm that the independence declaration required by the Corporations act 2001, which has been given to the directors of MedAdvisor Limited, would be in the same terms if given to the directors as at the time of this auditor’s report.

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of MedAdvisor Limited is not in accordance with the Corporations Act 2001 including:

(a) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2017 and of its performance for the half-year ended on that date; and

(b) complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations Regulations 2001.

RSM AUSTRALIA PARTNERS

P W FRASER Partner Melbourne, VIC 22 February 2018

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ASX ANNOUNCEMENT 26 February 2018 · ASX ANNOUNCEMENT 26 February 2018 MedAdvisor HY18 Interim...

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