Document and Entity Information
Document and Entity Information | 12 Months Ended |
Jun. 30, 2019shares | |
Document and Entity Information | |
Entity Registrant Name | GENETIC TECHNOLOGIES LTD |
Entity Central Index Key | 0001166272 |
Document Type | 20-F |
Document Period End Date | Jun. 30, 2019 |
Amendment Flag | false |
Current Fiscal Year End Date | --06-30 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 2,938,134,143 |
Entity Emerging Growth Company | false |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/ (LOSS) - AUD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue from operations | |||
Genetic testing services | $ 25,444 | $ 189,254 | $ 518,506 |
Less: cost of sales | (276,267) | (300,088) | (492,417) |
Gross profit from operations | (250,823) | (110,834) | 26,089 |
Selling and marketing expenses | (576,077) | (1,066,404) | (2,721,474) |
General and administrative expenses | (3,830,198) | (3,015,818) | (3,109,530) |
Laboratory, research and development costs | (2,360,762) | (2,210,498) | (2,366,334) |
Finance costs | (20,031) | (28,843) | (31,995) |
Foreign exchange gains reclassified on liquidation of subsidiary | 0 | 527,049 | |
Other gains (losses) | (407,482) | ||
Impairment of intangible assets expenses | (544,694) | ||
Non-operating income and expenses | 1,019,769 | 441,476 | 344,112 |
Loss from operations before income tax | (6,425,604) | (5,463,872) | (8,403,826) |
Loss for the year | (6,425,604) | (5,463,872) | (8,403,826) |
Other comprehensive income/(loss) | |||
Exchange gains/(losses) on translation of controlled foreign operations | 23,668 | (522,966) | (130,655) |
Other comprehensive income/(loss) for the year, net of tax | 23,668 | (522,966) | (130,655) |
Total comprehensive loss for the year | (6,401,936) | (5,986,838) | (8,534,481) |
Total loss for the year is attributable to: | |||
Owners of Genetic Technologies Limited | (6,425,604) | (5,463,872) | (8,403,826) |
Loss for the year | (6,425,604) | (5,463,872) | (8,403,826) |
Total comprehensive loss for the year is attributable to: | |||
Owners of Genetic Technologies Limited | (6,401,936) | (5,986,838) | (8,534,481) |
Total comprehensive loss for the year | $ (6,401,936) | $ (5,986,838) | $ (8,534,481) |
Loss per share (cents per share) | |||
Basic and diluted net loss per ordinary share | $ (0.24) | $ (0.22) | $ (0.40) |
Weighted-average shares outstanding | 2,635,454,870 | 2,435,282,724 | 2,121,638,888 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS | Jun. 30, 2019AUD ($) | Jun. 30, 2018AUD ($) |
Current assets | ||
Cash and cash equivalents | $ 2,131,741 | $ 5,487,035 |
Trade and other receivables | 818,766 | 301,383 |
Prepayments and other assets | 245,165 | 202,279 |
Total current assets | 3,195,672 | 5,990,697 |
Non-current assets | ||
Property, plant and equipment | 69,333 | 175,284 |
Total non-current assets | 69,333 | 175,284 |
Total assets | 3,265,005 | 6,165,981 |
Current liabilities | ||
Trade and other payables | 1,005,308 | 945,130 |
Provisions | 487,682 | 505,583 |
Total current liabilities | 1,492,990 | 1,450,713 |
Non-current liabilities | ||
Provisions | 809 | 3,390 |
Total non-current liabilities | 809 | 3,390 |
Total liabilities | 1,493,799 | 1,454,103 |
Net assets | 1,771,206 | 4,711,878 |
EQUITY | ||
Contributed equity | 125,498,824 | 122,372,662 |
Reserves | 6,009,932 | 5,651,162 |
Accumulated losses | (129,737,550) | (123,311,946) |
Total equity | $ 1,771,206 | $ 4,711,878 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - AUD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from / (used in) operating activities | |||
Receipts from customers | $ 204,768 | $ 758,452 | $ 964,520 |
Payments to suppliers and employees | (6,575,163) | (6,757,243) | (8,077,083) |
R&D tax incentive and other grants received | 297,213 | 362,258 | 260,159 |
Net cash flows from/(used in) operating activities | (6,073,182) | (5,636,533) | (6,852,404) |
Cash flows (used in)/ from investing activities | |||
Proceeds from the sale of plant and equipment | 52,650 | ||
Purchases of plant and equipment | (50,309) | (2,385) | (234,799) |
Interest received | 25,849 | 15,218 | 38,765 |
Payments for investments in related parties | (500,000) | ||
Net cash flows (used in)/ from investing activities | (524,460) | 12,833 | (143,384) |
Cash flows (used in)/ from financing activities | |||
Proceeds from the issue of shares | 3,557,509 | 8,049,369 | |
Equity transaction costs | (431,347) | (9,963) | (1,234,430) |
Facility fee rebate | 295,110 | ||
Net cash flows (used in)/ from financing activities | 3,126,162 | (9,963) | 7,110,049 |
Net (decrease)/ increase in cash and cash equivalents | (3,471,480) | (5,633,663) | 114,261 |
Cash and cash equivalents at beginning of year | 5,487,035 | 10,988,255 | |
Net foreign exchange difference | 116,186 | 132,443 | (305,693) |
Cash and cash equivalents at end of year | $ 2,131,741 | $ 5,487,035 | $ 10,988,255 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - AUD ($) | Parent interests | Contributed equity | Reserves | Accumulated losses | Total |
Balance at Jun. 30, 2016 | $ 11,883,189 | $ 115,272,576 | $ 6,054,861 | $ (109,444,248) | $ 11,883,189 |
Loss for the year | (8,403,826) | (8,403,826) | (8,403,826) | ||
Other comprehensive income (loss) | (130,655) | (130,655) | (130,655) | ||
Total comprehensive loss | (8,534,481) | (130,655) | (8,403,826) | (8,534,481) | |
Value of shares issued on conversion of convertible notes | 6,814,939 | 6,814,939 | 6,814,939 | ||
Share-based payments | 120,287 | 120,287 | 120,287 | ||
Share facility fee rebate | 295,110 | 295,110 | 295,110 | ||
Transactions with owners in their capacity as owners | 7,230,336 | 7,110,049 | 120,287 | 7,230,336 | |
Balance at Jun. 30, 2017 | 10,579,044 | 122,382,625 | 6,044,493 | (117,848,074) | 10,579,044 |
Loss for the year | (5,463,872) | (5,463,872) | (5,463,872) | ||
Other comprehensive income (loss) | (522,966) | (522,966) | (522,966) | ||
Total comprehensive loss | (5,986,838) | (522,966) | (5,463,872) | (5,986,838) | |
Contributions of equity (net of transaction costs) | (9,963) | (9,963) | (9,963) | ||
Share-based payments | 129,635 | 129,635 | 129,635 | ||
Transactions with owners in their capacity as owners | 119,672 | (9,963) | 129,635 | 119,672 | |
Balance at Jun. 30, 2018 | $ 4,711,878 | 122,372,662 | 5,651,162 | (123,311,946) | 4,711,878 |
Loss for the year | (6,425,604) | (6,425,604) | |||
Other comprehensive income (loss) | 23,668 | 23,668 | |||
Total comprehensive loss | 23,668 | (6,425,604) | (6,401,936) | ||
Contributions of equity (net of transaction costs) | 3,126,162 | 3,126,162 | |||
Share-based payments | 341,201 | 341,201 | |||
Transactions with owners in their capacity as owners | 3,126,162 | 335,102 | 3,461,264 | ||
Reversal of forfeited options | (6,099) | (6,099) | |||
Balance at Jun. 30, 2019 | $ 125,498,824 | $ 6,009,932 | $ (129,737,550) | $ 1,771,206 |
CORPORATE INFORMATION
CORPORATE INFORMATION | 12 Months Ended |
Jun. 30, 2019 | |
CORPORATE INFORMATION | |
CORPORATE INFORMATION | 1. The Financial Report of Genetic Technologies Limited (the “Company”) for the year ended June 30, 2019 was authorized for issue in accordance with a resolution of the Directors dated September 30, 2019. Genetic Technologies Limited is incorporated in Australia and is a company limited by shares. The Directors have the power to amend and reissue the financial statements. The Company’s Ordinary Shares are publicly traded on the Australian Securities Exchange under the symbol GTG and, via Level II American Depositary Receipts, on the Nasdaq Capital Market under the ticker GENE. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. (a) Basis of preparation Compliance with International Financial Reporting Standards as issued by the International Accounting Standards Board The Financial Report complies with the International Financial Reporting Standards as issued by the International Accounting Standards Board. Historical cost convention These financial statements have been prepared under the historical cost convention except for financial assets and liabilities (including derivative instruments) which are measured at fair value. Critical accounting estimates The preparation of financial statements requires the use of certain critical accounting estimates. It also requires Management to exercise its judgement in the process of applying the Company's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are critical to the financial statements, are disclosed in Note 3. Going concern For the year ending 30 June 2019, the Group incurred a total comprehensive loss of $6,401,936 (2018: $5,986,838) and net cash outflow from operations of $6,073,182 (2018: $5,636,533). As at 30 June 2019 the Group held total cash and cash equivalents of $2,131,741. During the 2020 financial year, the Directors expect stable cash outflows from operations as the Company continues to invest resources in expanding the research & development activities in support of the distribution of existing and new products. As a result of these expected cash outflows to support the announcement of the launch of further new genetic testing products, the Directors intend to raise further new equity funding in order to ensure the Company continues to hold adequate levels of available cash resources to meet creditors and other commitments and to deliver on partner expectations in China and the USA. The Company intends to raise further equity financing in October 2019, but there can be no assurance that we will be successful in this regard. The Company does not currently have binding commitments from any party to subscribe for shares and any raise will be subject to maintaining active listing on the NASDAQ exchange as well as compliance with the Group’s obligations under ASX Listing Rule 7.1. In addition to the plans to raise capital in the US, the Group has recorded a receivable at 30 June 2019 from the Australian Taxation Office in respect of the 2019 research and development tax incentive claim which the Group expects to receive this in October 2019. The group also has access to equity placement facility with Kentgrove Capital Pty Ltd whereby it has an opportunity to raise equity funding of up to $20 million in a series of individual placements of up to $1 million (or a higher amount by mutual agreement), expiring 7 April 2020. The Group currently does not have any binding commitments under this facility and the quantum and timing of capital raised will be subject to the market price and trading volumes of our ordinary shares. The continuing viability of the Company and its ability to continue as a going concern and meet its debts and commitments as they fall due is dependent on the satisfactory completion of planned equity raisings in October of 2019. Due to the uncertainty surrounding the timing, quantum or the ability to raise additional equity, there is a material uncertainty that may cast significant doubt on the Group’s ability to continue as a going concern and therefore, that it may be unable to realise its assets and discharge its liabilities in the normal course of business. However, the Directors believe that the Group will be successful in the above matters and accordingly, have prepared the financial report on a going concern basis. As such no adjustments have been made to the financial statements relating to the recoverability and classification of the asset carrying amounts or classification of liabilities that might be necessary should the Group not be able to continue as a going concern. As a U.S. SEC registrant, the Company is required to have its financial statements audited in accordance with Public Company Oversight Board ("PCAOB") standards. References in these IFRS financial statements to matters that may cast significant doubt about the Company's ability to continue as a going concern also raise substantial doubt as contemplated by the PCAOB standards. (b) New accounting standards and interpretations Standards and Interpretations affecting amounts reported in the current period (and/or prior period) The Company has applied the following standards and amendments for the first time for their annual reporting period commencing July 1, 2018: IFRS 9 Financial Instruments IFRS 9 Financial Instruments has replaced IAS 39 and addresses and classification, measurement and derecognition of financial assets and liabilities. It also addresses the new hedge accounting requirements, including changes to hedge effectiveness, treatment of hedging costs and risk components that can be hedged. IFRS 9 introduced a new expected loss impairment model that requires entities to account for expected credit losses at the time of recognizing the asset. The adoption of the new standard did not have a material impact on its classification and measurement of the financial assets and liabilities or its results on adoption of the new impairment model. IFRS 15 Revenue from Contracts with Customers IFRS 15 provides a single, principles based five-step model to be applied to all contracts with customers. Guidance is provided on topics such as the point in which revenue is recognized, accounting for variable consideration, costs of fulfilling and obtaining a contract and various related matters. The adoption of this standard applies to the recognition of the sales related to the BREVAGEN plus product as the Company’s current sole revenue stream. The Company has adopted the standard using the modified retrospective approach. There was no material impact on adoption of the new standard. Other new standards affecting the current reporting period The company also adopted the following standards during the period. · Classification and Measurement of Share-based Payment Transactions (Amendments to IFRS 2) · Interpretation 22 Foreign Currency Transactions and Advance Consideration . The adoption of these amendments did not have any impact on the current period or any prior period and is not likely to affect future periods. Certain new accounting standards and interpretations have been published that are not mandatory for June 30, 2019 reporting periods and have not been early adopted by the group. The group’s assessment of the impact of these new standards and interpretations is set out below. Standards and interpretations in issue but not yet adopted Title of IFRS 16 Leases Nature of change IFRS 16 was issued in February 2016. It will result in almost all leases being recognised on the consolidated balance sheet by lessees, as the distinction between operating and finance leases is removed. Under the new standard, an asset (the right to use the leased item) and a financial liability to pay rentals are recognised. The only exceptions are short-term and low-value leases. Impact The group has reviewed all leasing arrangements in light of the new lease accounting rules in IFRS 16. The standard will affect the accounting for the group’s operating leases. As at the reporting date, the group has non-cancellable operating lease commitments of $487,849. The group expects to recognise at 1 July 2019 right-of-use assets of an amount approximating the nominal value of these non-cancellable operating lease commitments, discounted at the group’s incremental borrowing rate. A corresponding lease liability will offset the amount recognised as a right-of-use asset at 1 July 2019. Overall net current assets will be $ 14,712 lower due to the presentation of a portion of the liability as a current liability. In financial year 2020, the operating cash flows will increase and financing cash flows decrease by approximately $221,281 as repayment of the principal portion of the lease liabilities will be classified as cash flows from financing activities. Mandatory application date/ Date of adoption by group The group will apply the standard from its mandatory adoption date of July 1, 2019. The group intends to apply the simplified transition approach and will not restate comparative amounts for the year prior to first adoption. Right-of-use assets for property leases will be measured on transition as if the new rules had always been applied. All other right-of-use assets will be measured at the amount of the lease liability on adoption (adjusted for any prepaid or accrued lease expenses). There are no other new standards and interpretations that are not yet effective and that would be expected to have a material impact on the group in the current or future reporting periods and on foreseeable future transactions. (c) Principles of consolidation Subsidiaries The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Genetic Technologies Limited (the “Company” or “Parent Entity”) as at June 30, 2019 and the results of all subsidiaries for the year then ended. Genetic Technologies Limited and its subsidiaries together are referred to in this Financial Report as the “Company” or the “Consolidated Entity”. Subsidiaries are all entities (including structured entities) over which the Company has control. The Company controls an entity when the Company is exposed to, or has rights to, variable returns from its involvement within the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Company. They are de-consolidated from the date that control ceases. Intercompany transactions, balances and unrealized gains / losses on transactions between Company companies are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the Company’s policies. Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated statement of comprehensive income, consolidated balance sheet and consolidated statements of changes in equity, respectively. (d) Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing the performance of the operating segments, has been identified as the Chief Executive Officer. (e) Parent entity financial information The financial information for the parent entity, Genetic Technologies Limited has been prepared on the same basis as the consolidated financial statements, except that investments in subsidiaries are accounted for at cost in the financial statements of Genetic Technologies Limited. Loans to subsidiaries are written down to their recoverable value as at balance date. (f) Foreign currency translation The functional and presentation currency of Genetic Technologies Limited and its Australian subsidiaries is the Australian dollar (AUD). Transactions in foreign currencies are initially recorded in the functional currency at the exchange rates ruling at the date of the transaction. Monetary assets and liabilities which are denominated in foreign currencies are retranslated at the rate of exchange ruling at the balance sheet date. All differences are taken to the statement of comprehensive income. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate ruling at the date of the initial transaction. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates ruling at the date when the fair value was determined. The functional currencies of the Company’s two overseas subsidiaries are as follows: GeneType Corporation – United States dollars (USD) Phenogen Sciences Inc. – United States dollars (USD) As at the reporting date, the assets and liabilities of these subsidiaries are translated into the presentation currency of Genetic Technologies Limited at the rate of exchange ruling at the balance sheet date and the statement of comprehensive income is translated at the weighted average exchange rates for the period unless this is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions. The exchange differences arising on the retranslation are recognized in other comprehensive income and taken directly to a separate component of equity. On disposal of a foreign entity, the deferred cumulative amount recognized in equity relating to that particular foreign operation is recognized in the statement of comprehensive income. (g) Earnings per share (“EPS”) Basic EPS is calculated by dividing the profit attributable to owners of the Company, excluding any costs of servicing equity other than Ordinary Shares, by the weighted average number of Ordinary Shares outstanding during the financial year. Diluted EPS adjusts the figures used in the determination of basic EPS to take into account the after income tax effect of interest and other financing costs associated with dilutive potential Ordinary Shares and the weighted average number of Ordinary Shares that would have been outstanding assuming the conversion of all dilutive potential Ordinary Shares. (h) Revenue recognition IFRS 15 supersedes IAS 11 Construction Contracts, IAS18 Revenue and related interpretations and it applies to all revenue arising from contracts with customers, unless those contracts are in the scope of other standards. The new standard has been applied as at 1 July 2018 using the modified retrospective approach and establishes a five-step model to account for revenue arising from contracts with customers. Under IFRS 15, revenue is recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. The standard requires entities to exercise judgement, taking into consideration all of the relevant facts and circumstances when applying each step of the model to contracts with their customers. The standard also specifies the accounting for the incremental costs of obtaining a contract and the costs directly related to fulfilling a contract. The adoption of IFRS 15 has not impacted the amounts disclosed within the financial statements. The following recognition criteria must also be met before revenue is recognized: Genetic testing revenues The Company operates facilities which provide genetic testing services. The Company recognises revenue from the provision of these services when the services have been completed. Interest received Income is recognized as the interest accrues using the effective interest method. Government Grants Research and development tax incentive The Australian government replaced the research and development tax concession with research and development (R&D) tax incentive from July 1, 2011. The R&D tax incentive applies to expenditure incurred and the use of depreciating assets in an income year commencing on or after July 1, 2011. A refundable tax offset is available to eligible companies with an annual aggregate turnover of less than $20 million. Management has assessed the Company’s activities and expenditure to determine which are likely to be eligible under the incentive scheme. The Company accounts for the R&D tax incentive as a government grant. The grant is recognized as other income over the period in which the R&D expense is recognized. Other Other Grants from the government are recognized at their fair value where there is a reasonable assurance that the grant will be received and the company will comply with all attached conditions. (i) Share-based payment and performance rights transactions The fair value of options granted under an Employee Option Plan is recognized as an employee benefit expense with a corresponding increase in equity. The fair value is measured at grant date and recognized over the vesting period over which all of the specified vesting conditions are to be satisfied. The fair value at grant date is determined by management with the assistance of an independent valuer, using a Black-Scholes option pricing model or a Monte Carlo simulation analysis. The total amount to be expensed is determined by reference to the fair value of the options granted. · including any market performance conditions (e.g. the entity’s share price) · excluding the impact of any service and non-market performance vesting conditions (e.g. remaining an employee over a specified time period) The cumulative employee benefits expense recognized at each reporting date until vesting date reflects (i) the extent to which the vesting period has expired; and (ii) the number of awards that, in the opinion of the Directors of the Company, will ultimately vest. This opinion is formed based on the best information available at balance date. Where the terms of an equity-settled award are modified, as a minimum an expense is recognized as if the terms had not been modified. In addition, an expense is recognized for any increase in the value of the transaction as a result of the modification, as at the date of modification. Where appropriate, the dilutive effect of outstanding options is reflected as additional share dilution in the computation of diluted earnings per share. The Company’s policy is to treat the options of terminated employees as forfeitures. The Performance Rights are not currently quoted on the ASX and as such have no ready market value. The Performance Rights each grant the holder a right of grant of one ordinary Share in the Company upon vesting of the Performance Rights for nil consideration. Accordingly, the Performance Rights may have a present value at the date of their grant. Various factors impact upon the value of Performance Rights including: · the period outstanding before the expiry date of the Performance Rights; · the underlying price or value of the securities into which they may be converted; · the proportion of the issued capital as expanded consequent upon conversion of the Performance Rights into Shares (i.e. whether or not the shares that might be acquired upon exercise of the options represent a controlling or other significant interest); and · the value of the shares into which the Performance Rights may be converted. There are various formulae which can be applied to determining the theoretical value of options (including the formula known as the Black-Scholes Model valuation formula and the Monte Carlo simulation). With the assistance of an independent valuer, the Company performed a valuation of the Performance Rights. The independent valuer has applied the Monte Carlo simulation in providing the valuation of the Performance Rights. As the Performance Rights have market event hurdles for vesting, the valuation has been provided with a range of underlying share prices. Inherent in the application of the Monte Carlo simulation are a number of inputs, some of which must be assumed. The data relied upon in applying the Monte Carlo simulation was: a) a range of prices analysed from 0.5 cents per share to 1.5 cents per share (being an approximate 50% discount to a 50%premium) from GTG’s current share price of 1.1 cents per share as at 5 October 2018 for all classes of Performance Rights; b) exercise price being 0.0 cents per Performance Right for all classes; c) VWAP hurdle (10 days consecutive share price hurdle) equaling 2.0 cents for Class A and Class B and 3.3 cents for Class C Performance Rights; d) the continuously compounded risk free rate being 2.02% for all classes of Performance Rights (calculated with reference to the RBA quoted Commonwealth Government bonds as at 8 October 2018 of similar duration to that of the expected life of each class of Performance Right); Performance Rights. As the Performance Rights have market event hurdles for vesting, the valuation has been provided with a range of underlying share prices. Inherent in the application of the Monte Carlo simulation are a number of inputs, some of which must be assumed. The data relied upon in applying the Monte Carlo simulation was: e) a range of prices analysed from 0.5 cents per share to 1.5 cents per share (being an approximate 50% discount to a 50% premium) from GTG's current share price of 1.1 cents per share as at 5 October 2018 for all classes of Performance Rights; f) exercise price being 0.0 cents per Performance Right for all classes; g) VWAP hurdle (10 days consecutive share price hurdle) equaling 2.0 cents for Class A and Class B and 3.3 cents for Class C Performance Rights; h) the continuously compounded risk free rate being 2.02% for all classes of Performance Rights (calculated with reference to the RBA quoted Commonwealth Government bonds as at 8 October 2018 of similar duration to that of the expected life of each class of Performance Right); i) the expected option life of 2.8 years for all classes of Performance Rights; and j) a volatility measure of 80%. (j) Income tax The income tax expense or revenue for the period is the tax payable on the current period’s taxable income based on the national income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and unused tax losses. The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the company’s subsidiaries and associates operate and generate taxable income. Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, the deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that, at the time of the transaction, affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled. Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses. Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses. Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax bases of investments in controlled entities where the parent entity is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. Current and deferred tax balances attributable to amounts recognised directly in equity are also recognised directly in equity. Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively. Tax consolidation legislation Genetic Technologies Limited (“GTG”) and its wholly-owned Australian-resident subsidiaries have implemented the tax consolidation legislation. The head entity, GTG, and the subsidiaries in the tax consolidated Company account for their own current and deferred tax amounts. These tax amounts are measured as if each entity in the tax consolidated Company continues to be a stand-alone taxpayer in its own right. In addition to its own current and deferred tax amounts, GTG also recognizes the current tax assets / liabilities and the deferred tax assets arising from unused tax losses and tax credits assumed from subsidiaries in the tax consolidated Company. Assets or liabilities arising under tax funding agreements with the tax consolidated entities are recognized as amounts receivable from or payable to other entities in the Company. Any difference between the amounts assumed and amounts receivable or payable under the tax funding agreements are recognized as a contribution to (or distribution from) wholly-owned tax subsidiaries. (k) Other taxes Revenues, expenses and assets are recognized net of the amount of Goods and Services Tax (GST) except where the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the GST is recognized as part of the cost of acquisition of the asset or as part of the expense item as applicable; and receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the balance sheet. Cash flows are included in the cash flow statement on a gross basis and the GST component arising from investing and financing activities, which is recoverable from / payable to the taxation authority, are classified as operating cash flows. (l) Withholding tax The Company generates revenues from the granting of licenses to parties resident in overseas countries. Such revenues may, in certain circumstances, be subject to the deduction of local withholding tax. In such cases, revenues are recorded net of any withholding tax deducted. (m) Finance costs Finance costs are recognized using the effective interest rate method. (n) Cash and cash equivalents Cash and cash equivalents in the balance sheet comprise cash at bank and in hand and short-term deposits with an original maturity of 3 months or less. For the purposes of the cash flow statement, cash and cash equivalents consist of cash and cash equivalents as defined above. Cash at bank earns interest at floating rates based on daily bank deposit rates. Short-term deposits are made for varying periods, depending on the immediate cash requirements of the Company, and earn interest at the respective short-term deposit rates. (o) Trade and other receivables Trade receivables, which are non-interest bearing and generally have terms of between 30 to 90 days, are recognized and carried at original invoice amount less an allowance for any uncollectible amounts. For the comparative periods prior to July 1, 2018, an allowance for doubtful debts is made when there is objective evidence that a receivable is impaired. Such evidence includes an assessment of the debtor’s ability and willingness to pay the amount due. The amount of the allowance/impairment loss is measured as the difference between the carrying amount of the trade receivables and the estimated future cash flows expected to be received from the relevant debtors. The Company has applied IFRS 9 from July 1, 2018. To measure the loss allowance on trade receivables, the Company uses the simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables. To measure the expected credit losses, trade receivables assets would be grouped based on shared credit risk characteristics and the days past due. (p) Inventories Inventories principally comprise laboratory and other supplies and are valued at the lower of cost and net realizable value. Inventory costs are recognized as the purchase price of items from suppliers plus freight inwards and any applicable landing charges. Costs are assigned on the basis of weighted average cost. (q) Property, plant and equipment Plant and equipment is stated at cost less accumulated depreciation and any impairment in value. Depreciation is calculated on a straight-line basis over the estimated useful life of the respective asset as follows: Laboratory equipment — 3 to 5 years Computer equipment — 3 years Office equipment — 3 to 5 years Leasehold improvements — lease term, being between 1 and 3 years Costs relating to day-to-day servicing of any item of property, plant and equipment are recognized in profit or loss as incurred. The cost of replacing larger parts of some items of property, plant and equipment are capitalized when incurred and depreciated over the period until their next scheduled replacement, with the replacement parts being subsequently written off. (r) Intangible assets Patents Patents held by the Company are used in the licensing, testing and research areas and are carried at cost and amortized on a straight-line basis over their useful lives, being 10 years. External costs incurred in filing and protecting patent applications, for which no future benefit is reasonably assured, are expensed as incurred. Research and development costs Costs relating to research activities are expensed as incurred. An intangible asset arising from development expenditure on an internal project is recognized only when the Company can demonstrate the technical feasibility of completing the intangible asset so that it will be available for use or sale, its intention to complete and its ability to use or sell the asset, how the asset will generate future economic benefits, the availability of resources to complete the development and the ability to measure reliably the expenditure attributable to the intangible asset during its development. To date, all development costs have been expensed as incurred as their recoverability cannot be regarded as assured. (s) Impairment of assets The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists, the Company makes an estimate of the asset’s recoverable amount. An asset’s recoverable amount is the higher of its fair value less costs of disposal or its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets and the asset’s value-in-use cannot be estimated to be close to its fair value. In such cases, the asset is tested for impairment as part of the cash-generating unit to which it belongs. When the carrying amount of an asset or cash-generating unit exceeds its recoverable amount, the asset or cash-generating unit is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Impairment losses relating to operations are recognized in those expense categories consistent with the function of the impaired asset unless the asset is carried at its revalued amount, in which case the impairment loss is treated as a revaluation decrease. An assessment is made at each reporting date as to whether there is any indication that previously recognized impairment losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. A previously recognized impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognized. If so, the carrying amount of the asset is increased to its recoverable amount. The increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in profit or loss unless it reverses a decrement previously charged to equity |
CRITICAL ACCOUNTING ESTIMATES A
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS | 12 Months Ended |
Jun. 30, 2019 | |
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS | |
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS | 3. Estimates and judgements are evaluated and based on historical experience and other factors, including expectations of future events that may have a financial impact on the Company and that are believed to be reasonable under the circumstances. Critical accounting estimates and assumptions The carrying amounts of certain assets and liabilities are often determined based on estimates and assumptions of future events. The key estimates and assumptions that have a significant risk of causing a material adjustment to the carrying value of certain assets and liabilities within the next annual reporting period are set out below. Share-based payments transactions The Company measures the cost of equity-settled transactions with employees by reference to the value of the equity instruments at the date on which they are granted. Management determined the fair value with the assistance of an independent valuer using a Black-Scholes and Monte Carlo simulation options pricing model. |
COST OF SALES
COST OF SALES | 12 Months Ended |
Jun. 30, 2019 | |
COST OF SALES | |
COST OF SALES | 4. Consolidated 2019 2018 2017 A$ A$ A$ Inventories used 55,995 93,869 172,070 Direct labour costs 103,601 88,690 152,767 Depreciation expense 55,480 65,853 71,139 Inventories written off (1) 61,191 51,676 96,441 Total cost of sales 276,267 300,088 492,417 (1) Inventories written off include $Nil (2018: $24,506 and 2017: $53,856) of items that expired during the year. |
NON OPERATING INCOME AND EXPEND
NON OPERATING INCOME AND EXPENDITURE | 12 Months Ended |
Jun. 30, 2019 | |
NON OPERATING INCOME AND EXPENDITURE | |
NON OPERATING INCOME AND EXPENDITURE | 5. 2019 2018 2017 A$ A$ A$ Net profit on disposal of plant and equipment — — 52,188 Research and development tax incentive 856,707 299,351 253,159 Export Marketing & Development Grant — 126,907 — Interest income 25,794 15,218 38,765 Rental income — — — Other income 137,268 — — Total non operating income and expenditure 1,019,769 441,476 344,112 |
FOREIGN EXCHANGE GAIN RECLASSIF
FOREIGN EXCHANGE GAIN RECLASSIFIED ON LIQUIDATION OF SUBSIDIARY | 12 Months Ended |
Jun. 30, 2019 | |
FOREIGN EXCHANGE GAIN RECLASSIFIED ON LIQUIDATION OF SUBSIDIARY | |
FOREIGN EXCHANGE GAIN RECLASSIFIED ON LIQUIDATION OF SUBSIDIARY | 6. Reclassification of net foreign exchange gains previously recognised in other comprehensive income, reclassified to profit or loss Nil Total gain on liquidation of subsidiary Nil Total gain is attributable to the liquidation of GeneType AG, a dormant subsidiary, that was completed on 13 December 2017 |
OTHER GAINS _ (LOSSES)
OTHER GAINS / (LOSSES) | 12 Months Ended |
Jun. 30, 2019 | |
OTHER GAINS / (LOSSES) | |
OTHER GAINS / (LOSSES) | 7. OTHER GAINS / (LOSSES) Consolidated 2019 2018 2017 A$ A$ A$ Net foreign exchange gains/(losses) 92,518 — — Net impairment losses(1) (500,000) — — Total other gains / (losses) (407,482) — — (1) In August 2018, the Company invested $250,000 into Swisstec towards the proposed joint venture to enable the Company and Swisstec to collaborate to develop a medical and health service platform using blockchain technology. The Company has recorded an impairment against the investment during the financial year ended June 30, 2019, due to cessation of activities in relation to the joint venture. (1) In December 2018, Genetic Technologies Limited entered and invested $250,000 into a Joint Venture agreement with Blockshine Health Pty Ltd. with an ownership of 49%. The Company has recorded an impairment against the investment during the financial year ended June 30, 2019, due to the cancellation of the project. |
EXPENSES
EXPENSES | 12 Months Ended |
Jun. 30, 2019 | |
EXPENSES | |
EXPENSES | 8. Consolidated 2019 2018 2017 A$ A$ A$ Amortization of intangible assets — — 63,783 Depreciation of fixed assets 156,248 303,749 307,828 Employee benefits expenses 2,414,408 2,657,232 3,594,936 Operating lease expenses 312,956 326,192 310,413 Research and development expenses 310,703 459,026 418,598 |
INCOME TAX
INCOME TAX | 12 Months Ended |
Jun. 30, 2019 | |
INCOME TAX | |
INCOME TAX | 9. Consolidated 2019 2018 2017 A$ A$ A$ Reconciliation of income tax expense to prima facie tax payable Loss before income tax expense (6,425,604) (5,463,872) (8,403,826) Tax at the Australian tax rate of 27.50% (2018: 27.50% and 2017: 28.50%) (1,767,041) (1,502,565) (2,311,052) Tax effect amounts which are not deductible/(taxable) in calculating taxable income Share-based payments expense 92,153 35,650 33,079 Research and development tax incentive 541,596 148,346 108,163 Other non-deductible items 590 1,509 1,257 Other assessable items — — 81,155 (1,132,702) (1,317,060) (2,087,398) Difference in overseas tax rates 41,009 67,557 (96,775) Under /(over) provision 1,126,722 (268,092) (75,054) Temporary differences not recognized (121,965) — — Research and development tax credit (238,084) (82,322) (69,619) Tax losses not recognized 325,020 1,599,917 2,328,846 Income tax expense — — — Net deferred tax assets Deferred tax assets not recognized Property, plant and equipment 863 1,381 2,802 Capital raising costs 232,328 347,370 320,417 Applera settlement — — — Intangible assets 1,893,220 1,949,601 2,003,505 Provisions 187,958 201,492 333,103 Other — — — Total deferred tax assets 2,314,369 2,499,844 2,659,827 Deferred tax liabilities not recognized Prepayments — — — Total deferred tax liabilities — — — Net deferred tax assets on temporary differences not brought to account (2,314,369) (2,499,844) (2,659,827) Total net deferred tax assets — — — Consolidated 2019 2018 2017 A$ A$ A$ Tax losses Unused tax losses for which no deferred tax asset has been recognized 90,254,547 87,970,140 80,706,629 Potential tax benefit 27.50% (2016: 28.50%) 23,104,882 22,596,182 22,194,323 Subject to the Company continuing to meet the relevant statutory tests, the tax losses are available for offset against future taxable income. At June 30, 2019, the Company had a potential tax benefit related to tax losses carried forward of $23,104,882 (2018:22,596,182). Such amount includes net losses of $5,541,152 (2018:$5,155,038) related to subsidiaries in the United States (U.S.). The Tax Cuts and Jobs Act (TCJA) enacted by Congress in the U.S. on December 22, 2017 cut the top corporate income tax rate from 35% to 21%. For tax years beginning after December 31, 2017, the graduated corporate tax rate structure is eliminated and corporate taxable income will be taxed at 21-percent flat rate. Additionally, the previous 20-year limitation on carry forward net operating losses (NOL’s) has been removed, allowing the NOL’s to be carried forward indefinitely. The remaining tax losses carried forward of $17,563,730 (2018:17,441,144) are indefinite and are attributable to the Company’s operations in Australia. As such the total unused tax losses available to the Company, equal $23,104,882 (2018:$22,596,182). As at balance date, there are unrecognized tax losses with a benefit of approximately $23,104,882 (2018: $22,596,182 and 2017: $22,194,323) that have not been recognized as a deferred tax asset to the Company. These unrecognized deferred tax assets will only be obtained if: (a) The Company companies derive future assessable income of a nature and amount sufficient to enable the benefits to be realized; (b) The Company companies continue to comply with the conditions for deductibility imposed by the law; and (c) No changes in tax legislation adversely affect the Company companies from realizing the benefit. Tax consolidation legislation Genetic Technologies Limited and its wholly-owned Australian subsidiaries implemented the tax consolidation legislation as from July 1, 2003. The accounting policy in relation to this legislation is set out in Note 2(j). The entities in the tax consolidated Company have entered into a Tax Sharing Agreement which, in the opinion of the Directors, limits the joint and several liabilities of the wholly-owned entities in the case of a default by the head entity, Genetic Technologies Limited. The entities have also entered into a Tax Funding Agreement under which the wholly-owned entities fully compensate Genetic Technologies Limited for any current tax payable assumed and are compensated by Genetic Technologies Limited for any current tax receivable and deferred tax assets relating to unused tax losses or unused tax credits that are transferred to Genetic Technologies Limited under the tax consolidation legislation. The funding amounts are determined by reference to the amounts recognized in the respective subsidiaries’ financial statements. The amounts receivable or payable under the Tax Funding Agreement are due upon receipt of the funding advice from the head entity, which is issued as soon as practicable after the end of each financial year. As at June 30, 2019, there are no unrecognised temporary differences associated with the Company’s investments in subsidiaries, as the Company has no liability for additional taxation should unremitted earnings be remitted (2017: $nil). |
LOSS PER SHARE
LOSS PER SHARE | 12 Months Ended |
Jun. 30, 2019 | |
LOSS PER SHARE | |
LOSS PER SHARE | 10. The following reflects the income and share data used in the calculations of basic and diluted loss per share: 2019 2018 2017 A$ A$ A$ Loss for the year attributable to the owners of Genetic Technologies Limited (6,425,604) (5,463,872) (8,403,826) Weighted average number of Ordinary Shares used in calculating loss per share 2,635,454,870 2,435,282,724 2,121,638,888 Note: None of the 114,250,000 (2018: 55,102,778 and 2017: 75,102,778 ) options/performance rights over the Company’s Ordinary Shares that were outstanding as at the reporting date are considered to be dilutive for the purposes of calculating diluted earnings per share. |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 12 Months Ended |
Jun. 30, 2019 | |
CASH AND CASH EQUIVALENTS | |
CASH AND CASH EQUIVALENTS | 11. Consolidated 2019 2018 2017 A$ A$ A$ Reconciliation of cash and cash equivalents Cash at bank and on hand 2,131,741 5,487,035 10,988,255 Total cash and cash equivalents 2,131,741 5,487,035 10,988,255 Reconciliation of loss for the year Reconciliation of loss for the year after income tax to net cash flows used in operating activities is as follows: Loss for the year after income tax (6,425,604) (5,463,872) (8,403,826) Adjust for non-cash items Amortization and depreciation expenses 156,260 303,749 371,611 Impairment of intangible assets — 544,694 Impairment of investments 500,000 Share-based payments expense 335,102 129,635 120,287 interest classified as investing cash flows (25,850) 15,219 — Net (profit) / loss on disposal of plant and equipment — — (52,188) Net (gains) / losses on liquidation of subsidiary — (527,049) — Net foreign exchange (gains) / losses (92,518) (128,360) 175,038 Adjust for changes in assets and liabilities (Increase) / decrease in trade and other receivables (517,383) 124,889 204,501 (Increase) / decrease in prepayments and other assets (42,885) 14,843 103,488 Increase / (decrease) in trade and other payables 60,178 47,027 60,120 Increase / (decrease) in provisions (20,482) (122,176) 62,636 Net cash flows from / (used in) operating activities (6,073,182) (5,636,533) (6,813,639) Financing facilities available As at June 30, 2019, the following financing facilities had been negotiated and were available: Total facilities Credit cards 95,714 183,770 306,128 Facilities used as at reporting date Credit cards (6,516) (12,031) (12,428) Facilities unused as at reporting date Credit cards 89,198 171,739 293,700 |
TRADE AND OTHER RECEIVABLES (CU
TRADE AND OTHER RECEIVABLES (CURRENT) | 12 Months Ended |
Jun. 30, 2019 | |
TRADE AND OTHER RECEIVABLES (CURRENT) | |
TRADE AND OTHER RECEIVABLES (CURRENT) | 12. Consolidated 2019 2018 A$ A$ Trade receivables 16,529 10,503 Less: 2019: Impairment allowance / 2018: provision for doubtful debts — — Net trade receivables 16,529 10,503 Other receivables* 802,237 290,880 Total net current trade and other receivables 818,766 301,383 · Other receivables majorly consists of R&D income grant receivable. Note: Trade and other receivables for the Company include amounts due in US dollars of USD Nil (2018: USD 7,114). Refer Note 28 for details of aging, interest rate and credit risks applicable to trade and other receivables for which, due to their short-term nature, their carrying value approximates their fair value. |
PREPAYMENTS AND OTHER ASSETS (C
PREPAYMENTS AND OTHER ASSETS (CURRENT) | 12 Months Ended |
Jun. 30, 2019 | |
PREPAYMENTS AND OTHER ASSETS (CURRENT) | |
PREPAYMENTS AND OTHER ASSETS (CURRENT) | 13. 2019 2018 A$ A$ Prepayments 159,844 139,767 Inventories at the lower of cost and net realizable value 31,865 59,007 Performance bond and deposits 53,456 3,505 Total current prepayments and other assets 245,165 202,279 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Jun. 30, 2019 | |
PROPERTY, PLANT AND EQUIPMENT | |
PROPERTY, PLANT AND EQUIPMENT | 14. Consolidated 2019 2018 A$ A$ Laboratory equipment, at cost 1,451,389 1,451,389 Less: accumulated depreciation (1,410,877) (1,355,397) Net laboratory equipment 40,512 95,992 Computer equipment, at cost 609,550 609,550 Add: additions during the year 47,715 — Less: accumulated depreciation (628,868) (563,208) Net computer equipment 28,397 46,342 Office equipment, at cost 167,564 167,564 Less: accumulated depreciation (167,564) (166,807) Net office equipment — 757 Equipment under hire purchase, at cost 594,626 594,626 Less: accumulated depreciation (594,626) (594,626) Net equipment under hire purchase — — Leasehold improvements, at cost 462,797 462,797 Add: additions during the year 2,583 Less: accumulated depreciation (464,956) (430,604) Net leasehold improvements 424 32,193 Total net property, plant and equipment 69,333 175,284 Reconciliation of property, plant and equipment Opening gross carrying amount 3,285,926 3,283,541 Add: additions purchased during the year 50,297 2,385 Less: disposals made during the year — — Closing gross carrying amount 3,336,223 3,285,926 Opening accumulated depreciation and impairment losses (3,110,642) (2,806,893) Add: disposals made during the year — — Less: depreciation expense charged (156,248) (303,749) Closing accumulated depreciation and impairment losses (3,266,890) (3,110,642) Total net property, plant and equipment 69,333 175,284 Reconciliation of movements in property, plant and equipment by asset category Opening Closing net carrying Additions Disposals Depreciation net carrying amount during year during year expense amount Asset category A$ A$ A$ A$ A$ Laboratory equipment 95,992 — — (55,480) 40,512 Computer equipment 46,342 47,714 — (66,416) 28,397 Leasehold improvements 32,193 2,583 — (34,352) 424 Totals 175,284 50,297 — (156,248) 69,333 |
TRADE AND OTHER PAYABLES (CURRE
TRADE AND OTHER PAYABLES (CURRENT) | 12 Months Ended |
Jun. 30, 2019 | |
TRADE AND OTHER PAYABLES (CURRENT) | |
TRADE AND OTHER PAYABLES (CURRENT) | 15. Consolidated 2019 2018 A$ A$ Trade payables 590,231 535,924 Other payables 68,423 222,502 Accrued expenses 346,654 186,704 Total current trade and other payables 1,005,308 945,130 Note: Trade payables for the Company include amounts due in US dollars of USD 126,829 (2018: USD 116,063) and Swiss francs of CHF 0 (2017: CHF 380). Refer Note 28 for details of management of interest rate, foreign exchange and liquidity risks applicable to trade and other payables for which, due to their short-term nature, their carrying value approximates their fair value. |
PROVISIONS (CURRENT AND NON-CUR
PROVISIONS (CURRENT AND NON-CURRENT) | 12 Months Ended |
Jun. 30, 2019 | |
PROVISIONS (CURRENT AND NON-CURRENT) | |
PROVISIONS (CURRENT AND NON-CURRENT) | 16. 2019 2018 A$ A$ Current provisions Annual leave 152,352 145,449 Long service leave 243,740 268,544 Make good * 91,590 91,590 Total current provisions 487,682 505,583 Non-current provisions Long service leave 809 3,390 Make good * — — Total non-current provisions 809 3,390 Total provisions 488,491 508,973 * Make good provision Genetic Technologies Limited is required to restore the leased premises situated in Fitzroy, Melbourne to their original condition at the end of the lease terms. A provision has been recognized for the present value of the estimated expenditure required to remove any leasehold improvements. These costs have been capitalized as part of the cost of leasehold improvements and are amortized over the shorter of the term of the lease or the useful life of the assets. See Note 2 (u) for the Company’s other accounting policies relevant to provisions. Consolidated 2019 2018 A$ A$ Reconciliation of annual leave provision Balance at the beginning of the financial year 145,499 239,821 Add: obligation accrued during the year 91,106 155,967 Less: utilized during the year (84,253) (250,289) Balance at the end of the financial year 152,352 145,499 Reconciliation of long service leave provision Balance at the beginning of the financial year 271,933 299,739 (Less)/ Add: obligation accrued during the year 10,226 (27,806) Less: utilized during the year (37,610) — Balance at the end of the financial year 244,549 271,933 Note: The current provisions for annual leave and long service leave include a total amount of $ 335,655 (2018: $ 325,421) in respect of obligations which, based on historical evidence, the Company estimates will be settled more than 12 months from balance date. |
CONTRIBUTED EQUITY
CONTRIBUTED EQUITY | 12 Months Ended |
Jun. 30, 2019 | |
CONTRIBUTED EQUITY | |
CONTRIBUTED EQUITY | 17. Consolidated 2019 2018 A$ A$ Issued and paid-up capital Fully paid Ordinary Shares 125,498,824 122,372,662 Total contributed equity 125,498,824 122,372,662 Movements in shares on issue Year ended June 30, 2018 Shares $ Balance at the beginning of the financial year 2,435,282,724 122,382,625 Less: transaction costs arising on share issue — (9,963) Balance at the end of the financial year 2,435,282,724 122,372,662 Year ended June 30, 2019 Shares $ Balance at the beginning of the financial year 2,435,282,724 122,372,662 Shares issued during the year 502,851,419 3,557,509 Less: transaction costs arising on share issue (431,347) Balance at the end of the financial year 2,938,134,143 125,498,824 Terms and conditions of contributed equity Ordinary shares have the right to receive dividends as declared and, in the event of winding up the Company, to participate in the proceeds from the sale of all surplus assets in proportion to the number of and amounts paid up on shares held. Ordinary shares, which have no par value, entitle their holder to one vote, either in person or by proxy, at a meeting of the Company. Capital management When managing capital, Management’s objective is to ensure that the Company continues as a going concern as well as to provide returns for shareholders and benefits for other stakeholders. Management also aims to maintain a capital structure to reduce the entity’s cost of capital. |
RESERVES
RESERVES | 12 Months Ended |
Jun. 30, 2019 | |
RESERVES | |
RESERVES | 18. Consolidated 2019 2018 A$ A$ Foreign currency translation 789,598 765,930 Share-based payments 5,220,334 4,885,232 Total reserves 6,009,932 5,651,162 Reconciliation of foreign currency translation reserve Balance at the beginning of the financial year 765,930 1,288,896 Add: net currency translation gain / (loss) 23,668 (522,966) Balance at the end of the financial year 789,598 765,930 Reconciliation of share-based payments reserve Balance at the beginning of the financial year 4,885,232 4,755,597 Add: share-based payments expense 341,201 129,635 Less: Reversal of forfeited/lapsed options (6,099) Balance at the end of the financial year 5,220,334 4,885,232 Nature and purpose of reserves Foreign currency translation reserve This reserve is used to record exchange differences arising from the translation of the financial statements of foreign subsidiaries. Share-based payments reserve This reserve is used to record the value of share-based payments provided to employees and others providing similar services as part of their remuneration. |
ACCUMULATED LOSSES
ACCUMULATED LOSSES | 12 Months Ended |
Jun. 30, 2019 | |
ACCUMULATED LOSSES | |
ACCUMULATED LOSSES | 19. Balance at the beginning of the financial year (123,311,946) (117,848,074) Add: net loss attributable to owners of Genetic Technologies Limited (6,425,604) (5,463,872) Balance at the end of the financial year (129,737,550) (123,311,946) |
OPTIONS
OPTIONS | 12 Months Ended |
Jun. 30, 2019 | |
OPTIONS | |
OPTIONS | 20. The fair value of options granted under an Employee Option Plan is recognised as an employee benefit expense with a corresponding increase in equity. The fair value is measured at grant date and recognized over the vesting period over which all of the specified vesting conditions are to be satisfied. The fair value at grant date is determined by management with the assistance of an independent valuer, using a Black-Scholes option pricing model or a Monte Carlo simulation analysis. The total amount to be expensed is determined by reference to the fair value of the options granted; · including any market performance conditions (e.g. the entities share price) · excluding the impact of any service and non-market performance vesting conditions (e.g. remaining an employee over a specified time period) The cumulative employee benefits expense recognised at each reporting date until vesting date reflects (i) the extent to which the vesting period has expired; and (ii) the number of awards that, in the opinion of the Directors of the Group, will ultimately vest. This opinion is formed based on the best information available at balance date. Where the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the terms had not been modified. In addition, an expense is recognised for any increase in the value of the transaction as a result of the modification, as at the date of modification. Where appropriate, the dilutive effect of outstanding options is reflected as additional share dilution in the computation of diluted earnings per share. The Company’s policy is to treat the options of terminated employees as forfeitures. On November 30, 2001, the Directors of the Company established a Staff Share Plan. On November 19, 2008, the shareholders of the Company approved the introduction of a new Employee Option Plan. Under the terms of the respective Plans, the Directors may, at their discretion, grant options over the ordinary shares in the Genetic Technologies Limited to executives, consultants, employees, and former Non-Executive Directors, of the Company. During the year 16,000,000 options over ordinary shares were granted pursuant the Employee Option Plan. The following information relates to ordinary shares granted pursuant to the Employee Option Plan at no cost for year ended 30 June 2019; Set out below are summaries of all listed and unlisted options, including ESOP: Ave. exercise price Number of options and per option performance rights As at 1 July $ 0.017 55,102,778 Granted to KentGrove Capital $ 0.015 12,500,000 Granted to employees during the year $ 0.010 16,000,000 Lapsed during the year $ 0.020 (19,236,111) Forfeited during the year $ 0.001 (6,000,000) Lapse of unlisted options attached to convertible notes $ 0.015 (20,366,667) As at 30 June $ 0.015 38,000,000 Note: On August 8, 2018, the Company announced that it issued the following securities to Kentgrove Capital Pty Ltd: · 8,833,100 Shares in lieu of payment of the Establishment Fee (Establishment Shares); · 12,500,000 Options exercisable at $0.0153 each and expiring 3 years after issue (Establishment Options); and · 100,000,000 Shares as security for the Company's obligations under the Kentgrove Facility (Collateral Shares). Fair value of options granted The options granted to Kentgrove Capital Pty Ltd were valued based on the following: 2019 Grant Date 08 Aug 2018 Options issued 12,500,000 Dividend yield — Historic volatility and expected volatility 80 % Option exercise price $ 0.0153 Weighted average exercise price $ 0.0153 Risk-free interest rate 2.02 % Expected life of an option 3 years Model used Black-Scholes Fair value of options at grant date $ 0.0040 As at June 30, 2019, the following options over Ordinary Shares in the Company were outstanding. Weighted ave. Weighted ave. 2019 exercise price 2018 exercise price Unlisted employee options (refer below) 25,500,000 $ 0.015 34,736,111 $ 0.017 Unlisted options attached to convertible notes — — 20,366,667 $ 0.015 Unlisted options granted to KentGrove Capital 12,500,000 $ 0.015 — — 38,000,000 $ 0.015 55,102,778 $ 0.016 On November 30, 2001, the Directors of the Company established a Staff Share Plan. On November 19, 2008, the shareholders of the Company approved the introduction of a new Employee Option Plan. Under the terms of the respective Plans, the Directors of the Company may grant options over Ordinary Shares in Genetic Technologies Limited to executives, consultants and employees of the Company. The options, which are granted at nil cost, are not transferable and are not quoted on the ASX. As at June 30, 2019, there was 1 executive and 12 employees who held options that had been granted under the Plans. Options granted under the Plans carry no rights to dividends and no voting rights. The movements in the number of options granted under the Plans are as follows: Weighted ave. Weighted ave. 2019 exercise price 2018 exercise price Unlisted employee options Balance at the beginning of the financial year 34,736,111 $ 0.017 54,736,111 $ 0.016 Add: options granted during the year 16,000,000 $ 0.010 — — Less: options lapsed during the year (19,236,111) $ 0.020 — — Less: options forfeited during the year (6,000,000) $ 0.010 (20,000,000) $ 0.014 Balance at the end of the financial year 25,500,000 $ 0.015 34,736,111 $ 0.017 There were no options exercised under the Employee Option Plan during the year ended June 30, 2019 (2018: Nil). The numbers of options outstanding as at June 30, 2019 by ASX code, including the respective dates of expiry and exercise prices, are tabled below (refer Note 23 for further information). The options tabled below are not listed on ASX. Weighted ave. Weighted ave. Option description 2019 exercise price 2018 exercise price Unlisted employee options Options to Kentgrove (expiring August 8, 2021) 12,500,000 $ 0.015 — — GTGAD (expiring September 14, 2020) — — — — GTGAD (expiring November 24, 2020) — — 19,236,111 $ 0.020 GTGAD (expiring March 31, 2021) 5,000,000 $ 0.020 5,000,000 $ 0.020 GTGAD (expiring February 16, 2022) 5,500,000 $ 0.010 10,500,000 $ 0.010 ESOP options (expiring December 11, 2021) 15,000,000 $ 0.010 — — Balance at the end of financial year 38,000,000 $ 0.015 34,736,111 $ 0.017 Unlisted options attached to convertible notes GTGAC (expiring December 2, 2018) — — 20,366,667 $ 0.015 Balance at the end of the financial year 38,000,000 $ 0.015 55,102,778 $ 0.016 Exercisable at the end of the financial year 38,000,000 $ 0.015 48,102,778 $ 0.017 The weighted average remaining contractual life of options outstanding as at June 30, 2019 was 2.16 years (2018:1.94 years). |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Jun. 30, 2019 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | 21. Identification of reportable segments The Company has identified a sole operating segment as reported that is consistent with the internal reporting provided to the chief operating decision maker and is aligned to the one major revenue stream. The Company’s operating segment is summarized as follows: Business segments Revenues and income Segment Sales Other Totals Profit / (loss) A$ A$ A$ A$ Operations 2019 25,444 1,019,769 1,045,213 (6,425,604) 2018 189,254 441,476 630,730 (5,463,872) 2017 518,506 344,112 862,618 (8,403,826) Amortization Purchases of Segment Assets Liabilities /depreciation equipment A$ A$ A$ A$ Operations 2019 3,265,005 (1,493,799) (156,248) 5,353 2018 6,165,981 (1,454,103) (303,749) 2,385 2017 12,108,297 (1,529,253) (371,611) 234,799 Geographic information Australia is the home country of the parent entity and the location of the Company’s genetic testing and licensing operations. U.S . – is the home of Phenogen Sciences Inc. and GeneType Corporation. Switzerland is the home of GeneType AG (Liquidated December 2017). Geographic information Revenues and income Sales Other Totals Profit/(Loss) A$ A$ A$ A$ Australia 2019 5,247 1,019,769 1,025,016 (5,791,950) 2018 — 441,476 441,476 (3,504,098) 2017 18,215 344,112 362,327 (7,000,994) U.S. 2019 20,197 — 20,197 (633,654) 2018 189,254 — 189,254 (1,959,774) 2017 500,291 — 500,291 (1,371,001) Other 2019 — — — — 2018 — — — — 2017 — — — (31,831) Totals 2019 25,444 1,019,769 1,045,213 (6,425,604) 2018 189,254 441,476 630,730 (5,463,872) 2017 518,506 344,112 862,618 (8,403,826) Segment assets: The internal management reporting presented to key business decision makers report total assets on the basis consistent with that if the consolidated financial statements. These reports do not allocate assets based on the operations of each segment or by geographical location. Under the current management reporting framework, total assets are not reviewed to a specific reporting segment or geographical location. Segment Liabilities: The internal management reporting presented to key business decision makers report total liabilities on the basis consistent with that if the consolidated financial statements. Under the current management reporting framework, total liabilities are not reviewed to a specific reporting segment or geographical location. Other revenues and income includes interest received of $25,790 (2018: $15,218 and 2017: $38,765). Expenses includes employee benefits expenses of $2,414,408 (2018: $2,657,232 and 2017: $3,594,936). Included in the above figures are the following intersegment balances and transactions: Consolidated 2019 2018 2017 A$ A$ A$ Foreign exchange gain (U.S.) and foreign exchange loss (Australia) 291,542 981,141 776,295 Cost of sales (U.S.) and sales (Australia) 9,708 38,352 74,762 Segment products and locations The principal geographic segment is Australia, with the Company’s headquarters being located in Melbourne in the State of Victoria however the key sales activities take place in the U.S.. Major customers During the years ended June 30, 2019 and June 30, 2018 there was no customer from whom the Company generated revenues representing more than 10% of the total consolidated revenue from operations or outstanding receivables. |
SHARE BASED PAYMENTS
SHARE BASED PAYMENTS | 12 Months Ended |
Jun. 30, 2019 | |
SHARE BASED PAYMENTS | |
SHARE BASED PAYMENTS | 22. (a) Employee option plan On November 30, 2001, the Directors of the Company established a Staff Share Plan. On November 19, 2008, the shareholders of the Company approved the introduction of a new Employee Option Plan. Under the terms of the respective Plans, the Directors may, at their discretion, grant options over the Ordinary Shares in the Genetic Technologies Limited to executives, consultants, employees, and former Non-Executive Directors, of the Company. During the year 16,000,000 options over Ordinary Shares were granted pursuant the Employee Option Plan. The following information relates to Ordinary Shares granted pursuant to the Employee Option Plan at no cost for year ended 30 June 2019; i. 16,000,000 unlisted options (Expiring on December 11, 2021 with an exercise price of $0.01 vesting on 30 June 2019) over Ordinary Shares pursuant to the Employee Option Plan were granted. The fair value of each option granted is estimated by an external valuer using a Black-Scholes option-pricing model, with assumptions as follows: 2019 Grant Date 12 Dec 2018 Options issued 16,000,000 Dividend yield — Historic volatility and expected volatility 80 % Option exercise price $ 0.010 Weighted average exercise price $ 0.030 Risk-free interest rate 2.02 % Expected life of an option 2.8 years Model used Black-Scholes Fair value of options at grant date $ 0.0051 As at 30 June 2019, there were 14 employee who held options that had been granted under the Plan. During the financial year 2018 no options over ordinary shares were granted pursuant the Employee Option Plan. The following information relates to ordinary shares granted pursuant to the Employee Option Plan at no cost for year ended 30 June 2017; The following information relates to Ordinary Shares granted pursuant to the Employee Option Plan at no cost for year ended 30 June 2017; i. 2017 Grant Date 17 Feb 2017 Options issued 1,250,000 Dividend yield — Historic volatility and expected volatility 60 % Option exercise price $ 0.010 Weighted average exercise price $ 0.010 Risk-free interest rate 2.19 % Expected life of an option 4.5 years Model used Black-Scholes Fair value of options at grant date $ 0.0050 As at 30 June 2019, there was 1 employee (2018: 1) who held options that had been granted under the Plan. ii. 21,500,000 options to a number of KMP. The options vest based on non-market performance conditions (requirement to remain employed by the Company) in three tranches commencing on the date of the 2017 Annual General Meeting (AGM) of the Company and then at each of the 12 and 24 month anniversaries thereafter . The fair value of each option granted is estimated by an external valuer using a Black-Scholes option-pricing model, with assumptions as follows 2017 Grant Date 17 Feb 2017 Options issued 21,500,000 Dividend yield — Historic volatility and expected volatility 60 % Option exercise price $ 0.010 Weighted average exercise price $ 0.010 Risk-free interest rate 2.19 % Expected life of an option 4.5 years Model used Black-Scholes Fair value of options at grant date $ 0.0050 iii. 2017 2016 Grant Date 17 Feb 2017 1 April 2016 25 Nov 2015 Options issued 1,250,000 500,000 1,500,000 Dividend yield — — — Historic volatility and expected volatility 60 % 80 % 80 % Option exercise price $ 0.010 $ 0.039 $ 0.058 Fair value of options at grant date $ 0.0050 $ 0.0065 $ 0.0139 Weighted average exercise price $ 0.010 $ 0.039 $ 0.058 Risk-free interest rate 2.19 % 1.93 % 2.22 % Expected life of an option 4.5 years 4.3 years 4.5 years Model used Black-Scholes Black-Scholes Black-Scholes (b) Performance Rights Issuance After receiving requisite shareholder approval on November 29, 2018, the Company has issued 76,250,000 performance rights to Directors of the Company as follows: 7,500,000 Class A Performance Rights, 25,000,000 Class B Performance Rights and 25,000,000 Class C performance Rights to Dr Paul Kasian 3,750,000 Class A Performance Rights to Dr Lindsay Wakefield 6,250,000 Class A Performance Rights to Dr George Muchnicki 5,000,000 Class A Performance Rights to Mr Peter Rubinstein 3,750,000 Class A Performance Rights to Mr Xue Lee Further detail around each tranche of performance rights has been detailed within the explanatory memorandum accompanying the Notice of Meeting lodged with the ASX on October 30, 2018. The Company has accounted for these performance rights in accordance with its accounting policy for share-based payment transactions and has recorded $104,441 of associated expense in the current year-end. Valuation of Performance Rights The Performance Rights are not currently quoted on the ASX and as such have no ready market value. The Performance Rights each grant the holder a right of grant of one ordinary Share in the Company upon vesting of the Performance Rights for nil consideration. Accordingly, the Performance Rights may have a present value at the date of their grant. Various factors impact upon the value of Performance Rights including: · the period outstanding before the expiry date of the Performance Rights; · the underlying price or value of the securities into which they may be converted; · the proportion of the issued capital as expanded consequent upon conversion of the Performance Rights into Shares (i.e. whether or not the shares that might be acquired upon exercise of the options represent a controlling or other significant interest); and · the value of the shares into which the Performance Rights may be converted. There are various formulae which can be applied to determining the theoretical value of options (including the formula known as the Black-Scholes Model valuation formula and the Monte Carlo simulation). The Company has commissioned an independent valuation of the Performance Rights. The independent valuer has applied the Monte Carlo simulation in providing the valuation of the Performance Rights. Inherent in the application of the Monte Carlo simulation are a number of inputs, some of which must be assumed. The data relied upon in applying the Monte Carlo simulation was: a) exercise price being 0.0 cents per Performance Right for all classes; b) VWAP hurdle (10 days consecutive share price hurdle) equaling 2.0 cents for Class A and Class B and 3.3 cents for Class C Performance Rights; c) the continuously compounded risk-free rate being 2.02% for all classes of Performance Rights (calculated with reference to the RBA quoted Commonwealth Government bonds as at 8 October 2018 of similar duration to that of the expected life of each class of Performance Right); d) the expected option life of 2.8 years for all classes of Performance Rights; and e) a volatility measure of 80%. Based on the independent valuation of the performance rights, the company agrees that the total value of the performance rights to be issued to each director (depending on the share price at issue) is as follows: Valuation of Class A Performance Rights Number of Performance Valuation per Total fair value of Class A Expense accounted for Rights issued Class A (cents) Performance Rights during the year Dr Paul Kasian 7,500,000 0.77 $ 57,750 $ 11,229 Dr Lindsay Wakefield 3,750,000 0.77 $ 28,875 $ 5,614 Dr George Muchnicki 6,250,000 0.77 $ 48,125 $ 9,358 Mr Peter Rubinstein 5,000,000 0.77 $ 38,500 $ 7,486 Mr Sam Lee 3,750,000 0.77 $ 28,875 $ 5,614 Valuation of Class B Performance Rights Number of Performance Valuation per Class B Performance Expense accounted for Rights issued Class B (cents) Rights during the year Dr Paul Kasian 25,000,000 0.77 $ 192,500 $ 37,431 Valuation of Class C Performance Rights Number of Performance Valuation per Class C Performance Expense accounted for Rights issued Class C (cents) Rights during the year Dr Paul Kasian 25,000,000 0.57 $ 142,500 $ 27,708 (b) Expenses arising from share-based payment transactions Total expenses arising from share-based payment transactions recognized during the period as part of employee benefit expense were as follows: Consolidated 2019 2018 2017 Kentgrove options issued 15,278 — — Performance rights issued 104,441 — 120,287 Options issued under employee option plan 215,383 129,635 120,287 Total expenses arising from share-based payments 335,102 129,635 120,287 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jun. 30, 2019 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 23. Consolidated 2019 2018 2017 Operating lease expenditure commitments A$ A$ A$ Minimum operating lease payments - not later than one year 250,068 41,625 227,992 - later than one year but not later than five years 266,560 — 35,676 - later than five years — — — Total minimum operating lease payments 516,628 41,625 263,668 As at June 30, 2019, the above operating leases related to the following premises that are currently occupied by the Company: Minimum Date of expiry payments Location Landlord Use of lease ($) 60‑66 Hanover Street Crude Pty. Ltd. Office / laboratory August 31, 2021 487,837 1300 Baxter Street, Suite 157, Charlotte, North Carolina Mid-Town Partners LLC Office Month to month 28,791 Total 516,628 Apart from the above, there were no other commitments or contingencies as at June 30, 2019. On July 3, 2018 the lease agreement for the Fitzroy premises in Melbourne was extended for 3 years from September 1, 2018 to August 31, 2021. In addition, Phenogen Sciences Inc. has vacated the Harris Corners Parkway office in Charlotte and entered into a lease agreement effective July 23, 2018 for premises situated at 1300 Baxter Street, Suite 157, Charlotte, North Carolina. |
AUDITORS' REMUNERATION
AUDITORS' REMUNERATION | 12 Months Ended |
Jun. 30, 2019 | |
AUDITORS' REMUNERATION | |
AUDITORS' REMUNERATION | 24 . Consolidated 2019 2018 2017 A$ A$ A$ Audit and assurance services PricewaterhouseCoopers in respect of: Audit(1) 288,000 288,200 325,972 Audit related — — 107,451 Other audit firms in respect of: Audit of the Financial Reports of subsidiaries — — 4,070 Total remuneration in respect of audit services 288,000 288,200 437,493 (1) Audit fees consist of services that would normally be provided in connection with statutory and regulatory filings or engagements, including services that generally only the independent accountant can reasonably provide. |
RELATED PARTY DISCLOSURES
RELATED PARTY DISCLOSURES | 12 Months Ended |
Jun. 30, 2019 | |
RELATED PARTY DISCLOSURES | |
RELATED PARTY DISCLOSURES | 25. Ultimate parent Genetic Technologies Limited is the ultimate Australian parent company. As at the date of this Report, no shareholder controls more than 50% of the issued capital of the Company. Transactions within the Group and with other related parties During the year ended 31 December 2019, the only transactions between entities within the Group and other related parties occurred, are as listed below. Except where noted, all amounts were charged on similar to market terms and at commercial rates. Debt convertible notes During the year ended 30 June 2015, the Company finalised the raising of $2,150,000 via the issue of unlisted secured (debt) notes to existing and new Australian institutional and wholesale investors. The debt notes carried a 10.0% coupon rate, and as approved at the Annual General Meeting, held on 25 November 2014, became convertible notes which could convert into ordinary shares (at a 10.0% discount to the 5 day VWAP). These convertible notes also carry free attached options to purchase further shares in the Company. Of these convertible notes, $125,000 were issued to a holder associated with Dr Lindsay Wakefield, a Company director at the time of issue, on the same terms and conditions as other note holders, all of which were converted during the year ended 30 June 2015. The 8,333,333 share options attached to these convertible notes expired during the year ended 30 June 2019. Dr Muchnicki and Mr Rubinstein, both of whom were elected as Directors of the Company on 31 January 2018, also participated in the debt convertible notes raising, during the year ended 30 June 2019 associated options indirectly held of 6,666,667 and 5,000,000 respectively expired. Blockchain Global Limited As announced by the Company on 15 February 2018, a non-binding terms sheet with Blockchain Global Limited(BCG) was entered to provide a framework for continuing discussions between the two companies, with the proposed transaction being subject to shareholder approval (by non-associated Shareholders); and as announced by the Company on 2 August 2018, a framework agreement with BCG was entered formalizing the non-binding terms sheet and providing a framework for a strategic alliance between the Company and BCG, with the agreement became binding on 29 November 2018 upon receiving the requisite shareholder approval. The agreement proposed the issue of 486 million shares to BCG in 3 tranches subject to the achievement of certain milestones. To date no shares have been issued under the framework agreements and no milestones have been achieved. Any rights to the 486 million milestone shares lapse between 27th December 2019 and 27 June 2020. The company has accounted for these share issuances in accordance with its accounting policy for share-based payment transactions and has not recorded any associated expense in the current year given performance conditions have not been met and are not currently considering any Blockchain related projects. A number of Directors of the Company presently or previously have had involvement with BCG. Mr Sam Lee has a direct and indirect share interest and was a CEO and managing director of BCG. Mr Peter Rubinstein held a minority shareholding in the entity and was also a director in BCG. Dr George Muchnicki has a direct and indirect interest in BCG. Dr Paul Kasian was previously a director of BCG until July 2018. Performance Rights Issuance After receiving requisite shareholder approval on 29 November 2018, the Company has issued 76,250,000 performance rights to Directors of the Company as follows: · 7,500,000 Class A Performance Rights, 25,000,000 Class B Performance Rights and 25,000,000 Class C performance Rights to Dr Paul Kasian · 3,750,000 Class A Performance Rights to Dr Lindsay Wakefield · 6,250,000 Class A Performance Rights to Dr George Muchnicki · 5,000,000 Class A Performance Rights to Mr Peter Rubinstein · 3,750,000 Class A Performance Rights to Mr Xue Lee The Company has accounted for these performance rights in accordance with its accounting policy for share-based payment transactions and has recorded $104,441 of associated expense in the current year. Valuation of Performance Rights The Performance Rights are not currently quoted on the ASX and as such have no ready market value. The Performance Rights each grant the holder a right of grant of one ordinary Share in the Company upon vesting of the Performance Rights for nil consideration. Accordingly, the Performance Rights may have a present value at the date of their grant. Various factors impact upon the value of Performance Rights including: · the period outstanding before the expiry date of the Performance Rights; · the underlying price or value of the securities into which they may be converted; · the proportion of the issued capital as expanded consequent upon conversion of the Performance Rights into Shares (i.e. whether or not the shares that might be acquired upon exercise of the options represent a controlling or other significant interest); and · the value of the shares into Which the Performance Rights may be converted. Blockshine Health Joint Venture The Company, via its subsidiary Gene Ventures Pty Ltd, entered into a joint venture with Blockshine Technology Corporation (BTC). The joint venture company, called Blockshine Health, will pursue and develop blockchain opportunities in the biomedical sector. Blockshine Health will have full access to BTC’s technology (royalty free) as well as all of its opportunities in the biomedical sector. The Company invested $250,000 into the joint venture for a 49% equity stake. The Company has recorded an impairment against the investment during the financial year ended June 30, 2019, due to the cancellation of the project. Dr George Muchnicki (GTG's nominee for directorship) is currently the director of both the Company and Blockshine Health. At this time, no Directors fees are payable to Dr Muchnicki by the joint venture company Blockshine Health. There were no transactions with parties related to Key Management Personnel during the year other than that disclosed above. Genetic Technologies HK Limited and Aocheng Genetic Technologies Co. Ltd - Joint Venture In August 2018, the Company announced a Heads of Agreement had been reached with Representatives of the Hainan Government - Hainan Ecological Smart City Group (“HESCG”), a Chinese industrial park development & operations company have formally invited Genetic Technologies Limited (“GTG”) to visit the Hainan Medical Pilot Zone to conduct a formal review and discuss opportunities for market entry into China via the Hainan Free Trade Zone initiative. The invitation was extended to GTG via Beijing Zishan Health Consultancy Limited (“Zishan”), demonstrating the potential for growth presented by the proposed Joint Venture between the parties (as announced to the market on 14 August 2018). Participants in the Hainan Medical Pilot Zone gain access to the Chinese healthcare market with an estimated value in excess of US$800B. Discussions with HESCG form part of an official review process to evaluate the feasibility of offering GTG’s suite of genetic risk assessment tests into China through the Hainan Medical Pilot Zone. Subsequently, the Company announced the official formation of Genetic Technologies HK Limited and Aocheng Genetic Technologies Co. Ltd in Hong Kong to the market on March 27, 2019, With a growing clinical market and increased government investment in health-related technology, China is poised to become one of the largest global markets for genomic testing. The invitation from representatives of the Hainan Government represents a significant opportunity for GTG to advance the adoption of genetic risk assessment tests in the region. GTG’s Chairman, Dr Paul Kasian has been named in the formation Heads of Agreement document to be the Chairman of the Joint Venture entity. At this time, no Directors fees or emoluments have been paid to Dr Kasian, nor have agreements regarding fees been reached. Lodge Corporate Dr. Kasian was a director of corporate finance and corporate advisor from December 2017 to February 2019 with Lodge Corporate. During the year, the company engaged in corporate advisory services with Lodge Corporate and had transactions worth $67,000 during the financial year end 2019. Mr. Phillip Hains (Chief Financial Officer) Subsequent to the financial year end 2019, on July 11, 2019, the Company announced that it had appointed Mr. Phillip Hains (MBA, CA) as the Chief Financial Officer who has over 30 years of extensive experience in roles with a portfolio of ASX and NASDAQ listed companies and provides CFO services through his firm The CFO Solution. The Company had a similar arrange with The CFO Solution, where it would engage and provided services of overall CFO, accounting and other finance related activities. During the financial year 2019, the company had transactions valued at $45,459 with The CFO Solution towards provision of overall CFO, accounting and other finance related activities. Details of Directors and Key Management Personnel as at balance date Directors · Dr Paul Kasian (Former Chairman and Interim CEO) (resigned September 24, 2019) · Dr Lindsay Wakefield (Non-Executive) · Dr Jerzy Muchnicki (Executive Director and Interim CEO) (appointed on September 24, 2019) · Mr Peter Rubinstein (Non-Executive) · Mr Xue Lee (Non-Executive) (resigned on July 9, 2019) Executives · Dr Richard Allman (Scientific Director) · Mr Paul Viney (Chief Financial Officer, Chief Operating Officer and Company Secretary) (appointed on December 15, 2018 and resigned on July 15, 2019) · Kevin Fischer (Chief Financial Officer) (resigned on December 31, 2018) Consolidated 2019 2018 2017 A$ A$ A$ Remuneration of Key Management Personnel Short-term employee benefits 964,162 1,215,632 1,533,457 Post-employment benefits 86,130 96,315 101,320 Share-based payments 157,886 130,385 121,269 Other long-term benefits 734 2,371 61,594 Termination benefits — 164,760 — Total remuneration of Key Management Personnel 1,208,912 1,609,463 1,817,640 |
SUBSIDIARIES
SUBSIDIARIES | 12 Months Ended |
Jun. 30, 2019 | |
SUBSIDIARIES | |
SUBSIDIARIES | 26. The following diagram is a depiction of the Company structure as at June 30, 2019. Company interest (%) Net carrying value ($) Name of Company Incorporation details 2019 2018 2019 2018 Entities held directly by parent GeneType Pty. Ltd. September 5, 1990 100 % 100 % — — Genetic Technologies Corporation Pty. Ltd. October 11, 1996 100 % 100 % 2 2 Gene Ventures Pty. Ltd. * March 7, 2001 100 % 100 % 10 10 GeneType AG ** February 13, 1989 — — — — GeneType Corporation December 18, 1989 100 % 100 % — — Phenogen Sciences Inc. (BREVAGen TM ) June 28, 2010 100 % 100 % 11,006 11,006 Genetic Technologies HK Ltd March 18, 2019 100 % N/A — — Total carrying value 11,018 11,018 * On 26 April 2018, the name of RareCellect Pty Ltd (ACN 096 135 9847) was changed to Gene Ventures Pty Ltd (ACN 096 135 947) ** Liquidation of GeneType AG was completed on 13 December 2017 |
FINANCIAL RISK MANAGEMENT
FINANCIAL RISK MANAGEMENT | 12 Months Ended |
Jun. 30, 2019 | |
FINANCIAL RISK MANAGEMENT | |
FINANCIAL RISK MANAGEMENT | 27. The Company’s activities expose it to a variety of financial risks such as credit risk, market risk (including foreign currency risk and interest rate risk) and liquidity risk. The Company’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the financial performance of the Company. The Company uses different methods to measure the different types of risk to which it is exposed. These methods include sensitivity analysis in the case of foreign exchange, interest rate and aging analysis for credit risk. Risk management is managed by the Executive under guidance provided by the Board of Directors via its Audit Committee, which provides guidance for overall risk management, as well as policies covering specific areas, such as credit risk, foreign exchange risk and interest rate risk. The Committee identifies and evaluates financial risks in close cooperation with the Company’s executive management. The Company’s principal financial instruments comprise cash and cash equivalents. The Company also has other financial assets and liabilities, such as trade receivables and payables, which arise directly from its operations. The Company does not typically enter into derivative transactions, such as interest rate swaps or forward currency contracts. It is, and has been throughout the period under review, the Company’s policy that no trading in financial instruments shall be undertaken. The main risks arising from the Company’s financial instruments are credit risk exposures, foreign currency risk, interest rate risk and liquidity risk. The policies for managing each of these risks are summarized below. Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognized, in respect of each class of financial asset, financial liability and equity instrument are disclosed in Note 2. The Company holds the following financial instruments: Consolidated 2019 2018 A$ A$ Financial assets Cash at bank / on hand 2,131,741 5,487,035 Trade and other receivables 818,766 301,383 Performance bond and deposits 53,456 3,505 Total financial assets 3,003,963 5,791,923 Financial liabilities Trade and other payables 1,005,308 945,130 Total financial liabilities 1,005,308 945,130 Credit risk The Company’s credit risk is managed on a Company basis. Credit risk arises from cash and cash equivalents and deposits with banks and financial institutions, as well as credit exposures to customers, including outstanding receivables and committed transactions. Other receivables represent amounts accrued for which reimbursement will be applied for from the Australian Taxation Authority under the Governments Research & Development grant. The maximum exposures to credit risk at June 30, 2019 in relation to each class of recognized financial asset is the carrying amount of those assets, as indicated in the balance sheet. Financial assets included on the balance sheet that potentially subject the Company to concentration of credit risk consist principally of cash and cash equivalents and trade receivables. In accordance with the guidelines of the Company’s Short Term Investment Policy, the Company minimizes this concentration of risk by placing its cash and cash equivalents with financial institutions that maintain superior credit ratings in order to limit the degree of credit exposure. For banks and financial institutions, only independently-rated parties with a minimum rating of “A-1” are accepted. The Company has also established guidelines relative to credit ratings, diversification and maturities that seek to maintain safety and liquidity. The Company does not require collateral to provide credit to its customers. The Group has not entered into any transactions that qualify as a financial derivative instrument. The trade receivables balance is reflective of historical collection rates which are monitored on an ongoing basis and adjusted accordingly based on changing collection and test data. As at June 30, 2019, the balance of the Company’s total accrued net trade receivables was $16,529 (2018: $10,503 (refer Note 12)). Credit risk further arises in relation to financial guarantees given by the Company to certain parties in respect of obligations of its subsidiaries. Such guarantees are only provided in exceptional circumstances. An analysis of the aging of trade and other receivables s is provided below: Consolidated 2019 2018 A$ A$ Net trade and other receivables Current (less than 30 days) 802,237 294,454 31 days to 60 days 11,159 3,142 61 days to 90 days (note) — 783 Greater than 90 days (note) 5,370 3,004 Total net trade and other receivables (Note 12) 818,766 301,383 Market risk Foreign currency risk The Company operates internationally and is exposed to foreign currency exchange risk, primarily with respect to the US dollar, through financial assets and liabilities. It is the Company’s policy not to hedge these transactions as the exposure is considered to be minimal from a consolidated operations perspective. Further, as the Company incurs expenses which are payable in US dollars, the financial assets that are held in US dollars provide a natural hedge for the Company. Foreign exchange risk arises from planned future commercial transactions and recognized assets and liabilities denominated in a currency that is not the entity’s functional currency and net investments in foreign operations. The risk is measured using sensitivity analysis and cash flow forecasting. The Company has a Foreign Exchange Management Policy which was developed to establish a formal framework and procedures for the efficient management of the financial risks that impact on Genetic Technologies Limited through its activities outside of Australia, predominantly in the United States. The policy governs the way in which the financial assets and liabilities of the Company that are denominated in foreign currencies are managed and any risks associated with that management are identified and addressed. Under the policy, which is updated on a regular basis as circumstances dictate, the Company generally retains in foreign currency only sufficient funds to meet the expected expenditures in that currency. Surplus funds are converted into Australian dollars as and when deemed appropriate by the Board in consultation with the CFO. As at June 30, 2019, the Company held the following financial assets and liabilities that were denominated in foreign currencies: Consolidated Year USD EUR CHF Financial assets Cash at bank / on hand 2019 201,737 27,052 — 2018 2,154,291 28,952 — Bonds and deposits 2019 1,986 — — 2018 3,505 — — Total financial assets 2019 203,723 27,052 — 2018 2,157,796 28,952 — Financial liabilities Trade and other payables 2019 117,992 1,900 — 2018 116,063 — — Total financial liabilities 2019 117,992 1,900 — 2018 116,063 — — Notes: USD — United States dollars EUR — European euros CHF — Swiss francs During the year ended June 30, 2019, the Australian dollar / US dollar exchange rate weakened by 5.13%, from 0.7403 at the beginning of the year to 0.7023 at the end of the year. Based on the financial instruments held at June 30, 2019, had the Australian dollar weakened/ strengthened by 10% against the US dollar with all other variables held constant, the Company’s loss for the year would have been $ 11,851 lower/ $9,696 higher (2018: 306,000 lower/ $250,000 higher), mainly as a result of changes in the values of cash and cash equivalents which are denominated in US dollars, as detailed in the above tables. Interest rate risk The Company’s main interest rate risk arises in relation to its short-term deposits with various financial institutions. If rates were to decrease, the Company may generate less interest revenue from such deposits. However, given the relatively short duration of such deposits, the associate risk is relatively minimal. The Company has a Short Term Investment Policy which was developed to manage the Company’s surplus cash and cash equivalents. In this context, the Company adopts a prudent approach that is tailored to cash forecasts rather than seeking high returns that may compromise access to funds as and when they are required. Under the policy, the Company deposits its surplus cash in a range of deposits / securities over different time frames and with different institutions in order to diversify its portfolio and minimize risk. On a monthly basis, Management provides the Board with a detailed list of all cash and cash equivalents, showing the periods over which the cash has been deposited, the name and credit rating of the institution holding the deposit and the interest rate at which the funds have been deposited. At June 30, 2019, if interest rates had changed by +/- 50 basis points from the year-end rates, with all other variables held constant, the Company’s loss for the year would have been $8,969 lower / higher (2018: loss $12,000 lower / higher), as a result of higher / lower interest income from cash and cash equivalents. The exposure to interest rate risks and the effective interest rates of financial assets and liabilities, both recognized and unrealized, for the Company is as follows: Carrying Weighted ave. Ave. maturity Floating rate Fixed rate amount effective rate Period Consolidated Year A$ A$ A$ % Days Financial assets Cash at bank / on hand 2019 2,131,741 2,131,741 1.74 % At call 2018 2,394,754 — 2,394,754 1.74 % At call Performance bond / deposits 2019 53,456 53,456 — At call 2018 — 3,505 3,505 — At call Totals 2019 2,131,741 53,456 2,131,741 2018 2,394,754 3,505 2,398,259 Financial liabilities Financial liabilities at fair value through profit or loss 2019 — — — — — 2018 — — — — — Totals 2019 — — — 2018 — — — Note The Company holds the balance of its cash in non-interest bearing bank accounts. Liquidity risk Prudent liquidity risk management implies maintaining sufficient cash and cash equivalents and the availability of funding through an adequate amount of committed credit facilities, such as its hire purchase and credit card facilities. The Company manages liquidity risk by continuously monitoring forecast and actual cash flows and, wherever possible, matching the maturity profiles of financial assets and liabilities. Due to the dynamic nature of the underlying businesses, Management aims to maintain flexibility in funding by keeping committed credit lines available. Surplus funds are generally only invested in instruments that are tradeable in highly liquid markets. Refer note 2(a) for further information on the material uncertainty that may cast significant doubt on the Company’s ability to continue as a going concern. A balanced view of cash inflows and outflows affecting the Company is summarized in the table below: < 6 months 6 to 12 months 1 to 5 years > 5 years Totals Consolidated Year A$ A$ A$ A$ A$ Financial assets Cash at bank / on hand 2019 2018 5,487,035 — — — 5,487,035 Trade and other receivables 2019 818,766 818,766 2018 301,383 — — — 301,383 Performance bond and deposits 2019 53,456 53,456 2018 3,505 — — — 3,505 Total financial assets 2019 3,003,963 3,003,963 2018 5,791,923 — — — 5,791,923 Financial liabilities Trade and other payables 2019 1,005,308 1,005,308 2018 945,130 — — — 945,130 Total financial liabilities 2019 1,005,308 1,005,308 2018 945,130 — — — 945,130 Net maturity 2019 (1,998,655) (1,998,655) 2018 4,846,793 — — — 4,846,793 The Company had access to the following undrawn borrowing facility as at June 30, 2019: Facility limit Amount used Amount available Nature of facility A$ A$ A$ Credit card facility 95,714 (6,516) 89,198 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Jun. 30, 2019 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 28. Significant events after balance date The following significant events have occurred after balance date; · The Company appointed Mr. Nick Burrows as Non- Executive Independent Director to the board on September 2, 2019. · On August 15, 2019, the Company announced a ratio change on the ADR program from 1 ADS representing 150 Ordinary Shares to a new ratio of 1 ADS representing 600 Ordinary Shares. The ratio change will result in a reverse split on Genetic Technologies ADSs on the basis of 1 ADS for 4 old ADS held. The Ordinary Shares of Genetic Technologies Limited will not be affected by this change in the ADS to ordinary shares ratio. · On July 11, 2019, the Company announced the appointment of a new Company Secretary in form of Mr. Justyn Stedwell and appointed a new Chief Financial Officer of the Company in form of Mr. Phillip Hains. These appointments replace roles performed by Mr. Paul Viney due to his departure which was announced during the same month. · On September 24, 2019, the Company announced resignation of Dr. Paul Kasian (current Chairman and interim Chief Executive Officer) with immediate effect with Dr. George Muchnicki taking up the role of the interim Chief Executive Officer. · On September 23, 2019, the Company announced the signing of a three-year collaboration agreement with Translational Genomics Research Institute (TGen) of Phoenix, Arizona USA. The agreement includes cooperation in the design feasibility analysis of clinical research studies to support the clinical application of GTG’s polygenic risk tests and identification of appropriate clinical partners to participate in the studies. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of preparation | (a) Basis of preparation Compliance with International Financial Reporting Standards as issued by the International Accounting Standards Board The Financial Report complies with the International Financial Reporting Standards as issued by the International Accounting Standards Board. Historical cost convention These financial statements have been prepared under the historical cost convention except for financial assets and liabilities (including derivative instruments) which are measured at fair value. Critical accounting estimates The preparation of financial statements requires the use of certain critical accounting estimates. It also requires Management to exercise its judgement in the process of applying the Company's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are critical to the financial statements, are disclosed in Note 3. Going concern For the year ending 30 June 2019, the Group incurred a total comprehensive loss of $6,401,936 (2018: $5,986,838) and net cash outflow from operations of $6,073,182 (2018: $5,636,533). As at 30 June 2019 the Group held total cash and cash equivalents of $2,131,741. During the 2020 financial year, the Directors expect stable cash outflows from operations as the Company continues to invest resources in expanding the research & development activities in support of the distribution of existing and new products. As a result of these expected cash outflows to support the announcement of the launch of further new genetic testing products, the Directors intend to raise further new equity funding in order to ensure the Company continues to hold adequate levels of available cash resources to meet creditors and other commitments and to deliver on partner expectations in China and the USA. The Company intends to raise further equity financing in October 2019, but there can be no assurance that we will be successful in this regard. The Company does not currently have binding commitments from any party to subscribe for shares and any raise will be subject to maintaining active listing on the NASDAQ exchange as well as compliance with the Group’s obligations under ASX Listing Rule 7.1. In addition to the plans to raise capital in the US, the Group has recorded a receivable at 30 June 2019 from the Australian Taxation Office in respect of the 2019 research and development tax incentive claim which the Group expects to receive this in October 2019. The group also has access to equity placement facility with Kentgrove Capital Pty Ltd whereby it has an opportunity to raise equity funding of up to $20 million in a series of individual placements of up to $1 million (or a higher amount by mutual agreement), expiring 7 April 2020. The Group currently does not have any binding commitments under this facility and the quantum and timing of capital raised will be subject to the market price and trading volumes of our ordinary shares. The continuing viability of the Company and its ability to continue as a going concern and meet its debts and commitments as they fall due is dependent on the satisfactory completion of planned equity raisings in October of 2019. Due to the uncertainty surrounding the timing, quantum or the ability to raise additional equity, there is a material uncertainty that may cast significant doubt on the Group’s ability to continue as a going concern and therefore, that it may be unable to realise its assets and discharge its liabilities in the normal course of business. However, the Directors believe that the Group will be successful in the above matters and accordingly, have prepared the financial report on a going concern basis. As such no adjustments have been made to the financial statements relating to the recoverability and classification of the asset carrying amounts or classification of liabilities that might be necessary should the Group not be able to continue as a going concern. As a U.S. SEC registrant, the Company is required to have its financial statements audited in accordance with Public Company Oversight Board ("PCAOB") standards. References in these IFRS financial statements to matters that may cast significant doubt about the Company's ability to continue as a going concern also raise substantial doubt as contemplated by the PCAOB standards. |
New accounting standards and interpretations | (b) New accounting standards and interpretations Standards and Interpretations affecting amounts reported in the current period (and/or prior period) The Company has applied the following standards and amendments for the first time for their annual reporting period commencing July 1, 2018: IFRS 9 Financial Instruments IFRS 9 Financial Instruments has replaced IAS 39 and addresses and classification, measurement and derecognition of financial assets and liabilities. It also addresses the new hedge accounting requirements, including changes to hedge effectiveness, treatment of hedging costs and risk components that can be hedged. IFRS 9 introduced a new expected loss impairment model that requires entities to account for expected credit losses at the time of recognizing the asset. The adoption of the new standard did not have a material impact on its classification and measurement of the financial assets and liabilities or its results on adoption of the new impairment model. IFRS 15 Revenue from Contracts with Customers IFRS 15 provides a single, principles based five-step model to be applied to all contracts with customers. Guidance is provided on topics such as the point in which revenue is recognized, accounting for variable consideration, costs of fulfilling and obtaining a contract and various related matters. The adoption of this standard applies to the recognition of the sales related to the BREVAGEN plus product as the Company’s current sole revenue stream. The Company has adopted the standard using the modified retrospective approach. There was no material impact on adoption of the new standard. Other new standards affecting the current reporting period The company also adopted the following standards during the period. · Classification and Measurement of Share-based Payment Transactions (Amendments to IFRS 2) · Interpretation 22 Foreign Currency Transactions and Advance Consideration . The adoption of these amendments did not have any impact on the current period or any prior period and is not likely to affect future periods. Certain new accounting standards and interpretations have been published that are not mandatory for June 30, 2019 reporting periods and have not been early adopted by the group. The group’s assessment of the impact of these new standards and interpretations is set out below. Standards and interpretations in issue but not yet adopted Title of IFRS 16 Leases Nature of change IFRS 16 was issued in February 2016. It will result in almost all leases being recognised on the consolidated balance sheet by lessees, as the distinction between operating and finance leases is removed. Under the new standard, an asset (the right to use the leased item) and a financial liability to pay rentals are recognised. The only exceptions are short-term and low-value leases. Impact The group has reviewed all leasing arrangements in light of the new lease accounting rules in IFRS 16. The standard will affect the accounting for the group’s operating leases. As at the reporting date, the group has non-cancellable operating lease commitments of $487,849. The group expects to recognise at 1 July 2019 right-of-use assets of an amount approximating the nominal value of these non-cancellable operating lease commitments, discounted at the group’s incremental borrowing rate. A corresponding lease liability will offset the amount recognised as a right-of-use asset at 1 July 2019. Overall net current assets will be $ 14,712 lower due to the presentation of a portion of the liability as a current liability. In financial year 2020, the operating cash flows will increase and financing cash flows decrease by approximately $221,281 as repayment of the principal portion of the lease liabilities will be classified as cash flows from financing activities. Mandatory application date/ Date of adoption by group The group will apply the standard from its mandatory adoption date of July 1, 2019. The group intends to apply the simplified transition approach and will not restate comparative amounts for the year prior to first adoption. Right-of-use assets for property leases will be measured on transition as if the new rules had always been applied. All other right-of-use assets will be measured at the amount of the lease liability on adoption (adjusted for any prepaid or accrued lease expenses). There are no other new standards and interpretations that are not yet effective and that would be expected to have a material impact on the group in the current or future reporting periods and on foreseeable future transactions. |
Principles of consolidation | (c) Principles of consolidation Subsidiaries The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Genetic Technologies Limited (the “Company” or “Parent Entity”) as at June 30, 2019 and the results of all subsidiaries for the year then ended. Genetic Technologies Limited and its subsidiaries together are referred to in this Financial Report as the “Company” or the “Consolidated Entity”. Subsidiaries are all entities (including structured entities) over which the Company has control. The Company controls an entity when the Company is exposed to, or has rights to, variable returns from its involvement within the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Company. They are de-consolidated from the date that control ceases. Intercompany transactions, balances and unrealized gains / losses on transactions between Company companies are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the Company’s policies. Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated statement of comprehensive income, consolidated balance sheet and consolidated statements of changes in equity, respectively. |
Segment reporting | (d) Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing the performance of the operating segments, has been identified as the Chief Executive Officer. |
Parent entity financial information | (e) Parent entity financial information The financial information for the parent entity, Genetic Technologies Limited has been prepared on the same basis as the consolidated financial statements, except that investments in subsidiaries are accounted for at cost in the financial statements of Genetic Technologies Limited. Loans to subsidiaries are written down to their recoverable value as at balance date. |
Foreign currency translation | (f) Foreign currency translation The functional and presentation currency of Genetic Technologies Limited and its Australian subsidiaries is the Australian dollar (AUD). Transactions in foreign currencies are initially recorded in the functional currency at the exchange rates ruling at the date of the transaction. Monetary assets and liabilities which are denominated in foreign currencies are retranslated at the rate of exchange ruling at the balance sheet date. All differences are taken to the statement of comprehensive income. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate ruling at the date of the initial transaction. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates ruling at the date when the fair value was determined. The functional currencies of the Company’s two overseas subsidiaries are as follows: GeneType Corporation – United States dollars (USD) Phenogen Sciences Inc. – United States dollars (USD) As at the reporting date, the assets and liabilities of these subsidiaries are translated into the presentation currency of Genetic Technologies Limited at the rate of exchange ruling at the balance sheet date and the statement of comprehensive income is translated at the weighted average exchange rates for the period unless this is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions. The exchange differences arising on the retranslation are recognized in other comprehensive income and taken directly to a separate component of equity. On disposal of a foreign entity, the deferred cumulative amount recognized in equity relating to that particular foreign operation is recognized in the statement of comprehensive income. |
Earnings per share ("EPS") | (g) Earnings per share (“EPS”) Basic EPS is calculated by dividing the profit attributable to owners of the Company, excluding any costs of servicing equity other than Ordinary Shares, by the weighted average number of Ordinary Shares outstanding during the financial year. Diluted EPS adjusts the figures used in the determination of basic EPS to take into account the after income tax effect of interest and other financing costs associated with dilutive potential Ordinary Shares and the weighted average number of Ordinary Shares that would have been outstanding assuming the conversion of all dilutive potential Ordinary Shares. |
Revenue recognition | (h) Revenue recognition IFRS 15 supersedes IAS 11 Construction Contracts, IAS18 Revenue and related interpretations and it applies to all revenue arising from contracts with customers, unless those contracts are in the scope of other standards. The new standard has been applied as at 1 July 2018 using the modified retrospective approach and establishes a five-step model to account for revenue arising from contracts with customers. Under IFRS 15, revenue is recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. The standard requires entities to exercise judgement, taking into consideration all of the relevant facts and circumstances when applying each step of the model to contracts with their customers. The standard also specifies the accounting for the incremental costs of obtaining a contract and the costs directly related to fulfilling a contract. The adoption of IFRS 15 has not impacted the amounts disclosed within the financial statements. The following recognition criteria must also be met before revenue is recognized: Genetic testing revenues The Company operates facilities which provide genetic testing services. The Company recognises revenue from the provision of these services when the services have been completed. Interest received Income is recognized as the interest accrues using the effective interest method. Government Grants Research and development tax incentive The Australian government replaced the research and development tax concession with research and development (R&D) tax incentive from July 1, 2011. The R&D tax incentive applies to expenditure incurred and the use of depreciating assets in an income year commencing on or after July 1, 2011. A refundable tax offset is available to eligible companies with an annual aggregate turnover of less than $20 million. Management has assessed the Company’s activities and expenditure to determine which are likely to be eligible under the incentive scheme. The Company accounts for the R&D tax incentive as a government grant. The grant is recognized as other income over the period in which the R&D expense is recognized. Other Other Grants from the government are recognized at their fair value where there is a reasonable assurance that the grant will be received and the company will comply with all attached conditions. |
Share-based payment transactions | (i) Share-based payment and performance rights transactions The fair value of options granted under an Employee Option Plan is recognized as an employee benefit expense with a corresponding increase in equity. The fair value is measured at grant date and recognized over the vesting period over which all of the specified vesting conditions are to be satisfied. The fair value at grant date is determined by management with the assistance of an independent valuer, using a Black-Scholes option pricing model or a Monte Carlo simulation analysis. The total amount to be expensed is determined by reference to the fair value of the options granted. · including any market performance conditions (e.g. the entity’s share price) · excluding the impact of any service and non-market performance vesting conditions (e.g. remaining an employee over a specified time period) The cumulative employee benefits expense recognized at each reporting date until vesting date reflects (i) the extent to which the vesting period has expired; and (ii) the number of awards that, in the opinion of the Directors of the Company, will ultimately vest. This opinion is formed based on the best information available at balance date. Where the terms of an equity-settled award are modified, as a minimum an expense is recognized as if the terms had not been modified. In addition, an expense is recognized for any increase in the value of the transaction as a result of the modification, as at the date of modification. Where appropriate, the dilutive effect of outstanding options is reflected as additional share dilution in the computation of diluted earnings per share. The Company’s policy is to treat the options of terminated employees as forfeitures. The Performance Rights are not currently quoted on the ASX and as such have no ready market value. The Performance Rights each grant the holder a right of grant of one ordinary Share in the Company upon vesting of the Performance Rights for nil consideration. Accordingly, the Performance Rights may have a present value at the date of their grant. Various factors impact upon the value of Performance Rights including: · the period outstanding before the expiry date of the Performance Rights; · the underlying price or value of the securities into which they may be converted; · the proportion of the issued capital as expanded consequent upon conversion of the Performance Rights into Shares (i.e. whether or not the shares that might be acquired upon exercise of the options represent a controlling or other significant interest); and · the value of the shares into which the Performance Rights may be converted. There are various formulae which can be applied to determining the theoretical value of options (including the formula known as the Black-Scholes Model valuation formula and the Monte Carlo simulation). With the assistance of an independent valuer, the Company performed a valuation of the Performance Rights. The independent valuer has applied the Monte Carlo simulation in providing the valuation of the Performance Rights. As the Performance Rights have market event hurdles for vesting, the valuation has been provided with a range of underlying share prices. Inherent in the application of the Monte Carlo simulation are a number of inputs, some of which must be assumed. The data relied upon in applying the Monte Carlo simulation was: a) a range of prices analysed from 0.5 cents per share to 1.5 cents per share (being an approximate 50% discount to a 50%premium) from GTG’s current share price of 1.1 cents per share as at 5 October 2018 for all classes of Performance Rights; b) exercise price being 0.0 cents per Performance Right for all classes; c) VWAP hurdle (10 days consecutive share price hurdle) equaling 2.0 cents for Class A and Class B and 3.3 cents for Class C Performance Rights; d) the continuously compounded risk free rate being 2.02% for all classes of Performance Rights (calculated with reference to the RBA quoted Commonwealth Government bonds as at 8 October 2018 of similar duration to that of the expected life of each class of Performance Right); Performance Rights. As the Performance Rights have market event hurdles for vesting, the valuation has been provided with a range of underlying share prices. Inherent in the application of the Monte Carlo simulation are a number of inputs, some of which must be assumed. The data relied upon in applying the Monte Carlo simulation was: e) a range of prices analysed from 0.5 cents per share to 1.5 cents per share (being an approximate 50% discount to a 50% premium) from GTG's current share price of 1.1 cents per share as at 5 October 2018 for all classes of Performance Rights; f) exercise price being 0.0 cents per Performance Right for all classes; g) VWAP hurdle (10 days consecutive share price hurdle) equaling 2.0 cents for Class A and Class B and 3.3 cents for Class C Performance Rights; h) the continuously compounded risk free rate being 2.02% for all classes of Performance Rights (calculated with reference to the RBA quoted Commonwealth Government bonds as at 8 October 2018 of similar duration to that of the expected life of each class of Performance Right); i) the expected option life of 2.8 years for all classes of Performance Rights; and j) a volatility measure of 80%. |
Income tax | (j) Income tax The income tax expense or revenue for the period is the tax payable on the current period’s taxable income based on the national income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and unused tax losses. The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the company’s subsidiaries and associates operate and generate taxable income. Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, the deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that, at the time of the transaction, affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled. Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses. Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses. Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax bases of investments in controlled entities where the parent entity is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. Current and deferred tax balances attributable to amounts recognised directly in equity are also recognised directly in equity. Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively. Tax consolidation legislation Genetic Technologies Limited (“GTG”) and its wholly-owned Australian-resident subsidiaries have implemented the tax consolidation legislation. The head entity, GTG, and the subsidiaries in the tax consolidated Company account for their own current and deferred tax amounts. These tax amounts are measured as if each entity in the tax consolidated Company continues to be a stand-alone taxpayer in its own right. In addition to its own current and deferred tax amounts, GTG also recognizes the current tax assets / liabilities and the deferred tax assets arising from unused tax losses and tax credits assumed from subsidiaries in the tax consolidated Company. Assets or liabilities arising under tax funding agreements with the tax consolidated entities are recognized as amounts receivable from or payable to other entities in the Company. Any difference between the amounts assumed and amounts receivable or payable under the tax funding agreements are recognized as a contribution to (or distribution from) wholly-owned tax subsidiaries. |
Other taxes | (k) Other taxes Revenues, expenses and assets are recognized net of the amount of Goods and Services Tax (GST) except where the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the GST is recognized as part of the cost of acquisition of the asset or as part of the expense item as applicable; and receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the balance sheet. Cash flows are included in the cash flow statement on a gross basis and the GST component arising from investing and financing activities, which is recoverable from / payable to the taxation authority, are classified as operating cash flows. |
Withholding tax | (l) Withholding tax The Company generates revenues from the granting of licenses to parties resident in overseas countries. Such revenues may, in certain circumstances, be subject to the deduction of local withholding tax. In such cases, revenues are recorded net of any withholding tax deducted. |
Finance costs | (m) Finance costs Finance costs are recognized using the effective interest rate method. |
Cash and cash equivalents | (n) Cash and cash equivalents Cash and cash equivalents in the balance sheet comprise cash at bank and in hand and short-term deposits with an original maturity of 3 months or less. For the purposes of the cash flow statement, cash and cash equivalents consist of cash and cash equivalents as defined above. Cash at bank earns interest at floating rates based on daily bank deposit rates. Short-term deposits are made for varying periods, depending on the immediate cash requirements of the Company, and earn interest at the respective short-term deposit rates. |
Trade and other receivables | (o) Trade and other receivables Trade receivables, which are non-interest bearing and generally have terms of between 30 to 90 days, are recognized and carried at original invoice amount less an allowance for any uncollectible amounts. For the comparative periods prior to July 1, 2018, an allowance for doubtful debts is made when there is objective evidence that a receivable is impaired. Such evidence includes an assessment of the debtor’s ability and willingness to pay the amount due. The amount of the allowance/impairment loss is measured as the difference between the carrying amount of the trade receivables and the estimated future cash flows expected to be received from the relevant debtors. The Company has applied IFRS 9 from July 1, 2018. To measure the loss allowance on trade receivables, the Company uses the simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables. To measure the expected credit losses, trade receivables assets would be grouped based on shared credit risk characteristics and the days past due. |
Inventories | (p) Inventories Inventories principally comprise laboratory and other supplies and are valued at the lower of cost and net realizable value. Inventory costs are recognized as the purchase price of items from suppliers plus freight inwards and any applicable landing charges. Costs are assigned on the basis of weighted average cost. |
Property, plant and equipment | (q) Property, plant and equipment Plant and equipment is stated at cost less accumulated depreciation and any impairment in value. Depreciation is calculated on a straight-line basis over the estimated useful life of the respective asset as follows: Laboratory equipment — 3 to 5 years Computer equipment — 3 years Office equipment — 3 to 5 years Leasehold improvements — lease term, being between 1 and 3 years Costs relating to day-to-day servicing of any item of property, plant and equipment are recognized in profit or loss as incurred. The cost of replacing larger parts of some items of property, plant and equipment are capitalized when incurred and depreciated over the period until their next scheduled replacement, with the replacement parts being subsequently written off. |
Intangible assets | (r) Intangible assets Patents Patents held by the Company are used in the licensing, testing and research areas and are carried at cost and amortized on a straight-line basis over their useful lives, being 10 years. External costs incurred in filing and protecting patent applications, for which no future benefit is reasonably assured, are expensed as incurred. Research and development costs Costs relating to research activities are expensed as incurred. An intangible asset arising from development expenditure on an internal project is recognized only when the Company can demonstrate the technical feasibility of completing the intangible asset so that it will be available for use or sale, its intention to complete and its ability to use or sell the asset, how the asset will generate future economic benefits, the availability of resources to complete the development and the ability to measure reliably the expenditure attributable to the intangible asset during its development. To date, all development costs have been expensed as incurred as their recoverability cannot be regarded as assured. |
Impairment of assets | (s) Impairment of assets The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists, the Company makes an estimate of the asset’s recoverable amount. An asset’s recoverable amount is the higher of its fair value less costs of disposal or its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets and the asset’s value-in-use cannot be estimated to be close to its fair value. In such cases, the asset is tested for impairment as part of the cash-generating unit to which it belongs. When the carrying amount of an asset or cash-generating unit exceeds its recoverable amount, the asset or cash-generating unit is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Impairment losses relating to operations are recognized in those expense categories consistent with the function of the impaired asset unless the asset is carried at its revalued amount, in which case the impairment loss is treated as a revaluation decrease. An assessment is made at each reporting date as to whether there is any indication that previously recognized impairment losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. A previously recognized impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognized. If so, the carrying amount of the asset is increased to its recoverable amount. The increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in profit or loss unless it reverses a decrement previously charged to equity, in which case the reversal is treated as a revaluation increase. After such a reversal, the depreciation charge is adjusted in future periods to allocate the asset’s revised carrying amount, less any residual value, on a systematic basis over its remaining useful life. |
Employee benefits | (t) Employee benefits (i) Short-term obligations Provision is made for employee benefits accumulated as a result of employees rendering services up to the reporting date. These benefits include wages and salaries, annual leave and long service leave. Liabilities arising in respect of wages and salaries, expected to be settled within twelve months of the reporting date are measured at their nominal amounts based on remuneration rates which are expected to be paid when the liability is settled. Expenses for non-accumulating sick leave are recognized when the leave is taken during the year and are measured at rates paid or payable. ii) Other long-term employee benefit obligations The liabilities for long service leave and annual leave are not expected to be settled wholly within 12 months after the end of the reporting period in which the employee renders the related service. They are therefore recognized in the provision for employee benefits and measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the end of the reporting period of corporate bonds with terms and currencies that match, as closely as possible, the estimated future cash outflows. The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur. (iii) Retirement benefit obligations The Company does not have any defined benefit funds. Statutory contributions to defined contribution superannuation funds are recognized as an expense as they become payable. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in the future payments is available. Statutory contributions are legally enforceable in Australia. |
Provisions | (u) Provisions Provisions for legal claims, service claims and make good obligations are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Where the Company expects some or all of a provision to be reimbursed, the reimbursement is recognized as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the statement of comprehensive income net of any reimbursement. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects market assessments of the time value of money and, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost. |
Trade and other payables | (v) Trade and other payables Trade payables and other payables are carried at amortized cost and represent liabilities for goods and services provided to the Company prior to the end of the financial year that are unpaid and arise when the Company becomes obliged to make future payments in respect of the purchase of these goods and services. Trade payables and other payables generally have terms of between 30 and 60 days. |
Contributed equity | (w) Contributed equity Issued and paid up capital is recognized at the fair value of the consideration received by the Company. Transaction costs arising on the issue of Ordinary Shares are recognized directly in equity as a deduction, net of tax, of the proceeds received. The Company has a share-based payment option plan under which options to subscribe for the Company’s shares have been granted to certain executives and other employees. |
COST OF SALES (Tables)
COST OF SALES (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
COST OF SALES | |
Schedule of cost of sales | Consolidated 2019 2018 2017 A$ A$ A$ Inventories used 55,995 93,869 172,070 Direct labour costs 103,601 88,690 152,767 Depreciation expense 55,480 65,853 71,139 Inventories written off (1) 61,191 51,676 96,441 Total cost of sales 276,267 300,088 492,417 (1) Inventories written off include $Nil (2018: $24,506 and 2017: $53,856) of items that expired during the year. |
NON OPERATING INCOME AND EXPE_2
NON OPERATING INCOME AND EXPENDITURE (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
NON OPERATING INCOME AND EXPENDITURE | |
Schedule of non operating income and expenditure | 2019 2018 2017 A$ A$ A$ Net profit on disposal of plant and equipment — — 52,188 Research and development tax incentive 856,707 299,351 253,159 Export Marketing & Development Grant — 126,907 — Interest income 25,794 15,218 38,765 Rental income — — — Other income 137,268 — — Total non operating income and expenditure 1,019,769 441,476 344,112 |
FOREIGN EXCHANGE GAIN RECLASS_2
FOREIGN EXCHANGE GAIN RECLASSIFIED ON LIQUIDATION OF SUBSIDIARY (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
FOREIGN EXCHANGE GAIN RECLASSIFIED ON LIQUIDATION OF SUBSIDIARY | |
Schedule of foreign exchange gain reclassified on liquidation of subsidiary | Reclassification of net foreign exchange gains previously recognised in other comprehensive income, reclassified to profit or loss Nil Total gain on liquidation of subsidiary Nil |
OTHER GAINS _ (LOSSES) (Tables)
OTHER GAINS / (LOSSES) (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
OTHER GAINS / (LOSSES) | |
Schedule of other gains / (losses) | Consolidated 2019 2018 2017 A$ A$ A$ Net foreign exchange gains/(losses) 92,518 — — Net impairment losses(1) (500,000) — — Total other gains / (losses) (407,482) — — |
EXPENSES (Tables)
EXPENSES (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
EXPENSES | |
Schedule of expenses | Consolidated 2019 2018 2017 A$ A$ A$ Amortization of intangible assets — — 63,783 Depreciation of fixed assets 156,248 303,749 307,828 Employee benefits expenses 2,414,408 2,657,232 3,594,936 Operating lease expenses 312,956 326,192 310,413 Research and development expenses 310,703 459,026 418,598 |
INCOME TAX (Tables)
INCOME TAX (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
INCOME TAX | |
Schedule of net deferred tax assets | Consolidated 2019 2018 2017 A$ A$ A$ Reconciliation of income tax expense to prima facie tax payable Loss before income tax expense (6,425,604) (5,463,872) (8,403,826) Tax at the Australian tax rate of 27.50% (2018: 27.50% and 2017: 28.50%) (1,767,041) (1,502,565) (2,311,052) Tax effect amounts which are not deductible/(taxable) in calculating taxable income Share-based payments expense 92,153 35,650 33,079 Research and development tax incentive 541,596 148,346 108,163 Other non-deductible items 590 1,509 1,257 Other assessable items — — 81,155 (1,132,702) (1,317,060) (2,087,398) Difference in overseas tax rates 41,009 67,557 (96,775) Under /(over) provision 1,126,722 (268,092) (75,054) Temporary differences not recognized (121,965) — — Research and development tax credit (238,084) (82,322) (69,619) Tax losses not recognized 325,020 1,599,917 2,328,846 Income tax expense — — — Net deferred tax assets Deferred tax assets not recognized Property, plant and equipment 863 1,381 2,802 Capital raising costs 232,328 347,370 320,417 Applera settlement — — — Intangible assets 1,893,220 1,949,601 2,003,505 Provisions 187,958 201,492 333,103 Other — — — Total deferred tax assets 2,314,369 2,499,844 2,659,827 Deferred tax liabilities not recognized Prepayments — — — Total deferred tax liabilities — — — Net deferred tax assets on temporary differences not brought to account (2,314,369) (2,499,844) (2,659,827) Total net deferred tax assets — — — |
Schedule of tax losses | Consolidated 2019 2018 2017 A$ A$ A$ Tax losses Unused tax losses for which no deferred tax asset has been recognized 90,254,547 87,970,140 80,706,629 Potential tax benefit 27.50% (2016: 28.50%) 23,104,882 22,596,182 22,194,323 |
LOSS PER SHARE (Tables)
LOSS PER SHARE (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
LOSS PER SHARE | |
Schedule of loss per share | 2019 2018 2017 A$ A$ A$ Loss for the year attributable to the owners of Genetic Technologies Limited (6,425,604) (5,463,872) (8,403,826) Weighted average number of Ordinary Shares used in calculating loss per share 2,635,454,870 2,435,282,724 2,121,638,888 |
CASH AND CASH EQUIVALENTS (Tabl
CASH AND CASH EQUIVALENTS (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
CASH AND CASH EQUIVALENTS | |
Schedule of cash and cash equivalents | Consolidated 2019 2018 2017 A$ A$ A$ Reconciliation of cash and cash equivalents Cash at bank and on hand 2,131,741 5,487,035 10,988,255 Total cash and cash equivalents 2,131,741 5,487,035 10,988,255 Reconciliation of loss for the year Reconciliation of loss for the year after income tax to net cash flows used in operating activities is as follows: Loss for the year after income tax (6,425,604) (5,463,872) (8,403,826) Adjust for non-cash items Amortization and depreciation expenses 156,260 303,749 371,611 Impairment of intangible assets — 544,694 Impairment of investments 500,000 Share-based payments expense 335,102 129,635 120,287 interest classified as investing cash flows (25,850) 15,219 — Net (profit) / loss on disposal of plant and equipment — — (52,188) Net (gains) / losses on liquidation of subsidiary — (527,049) — Net foreign exchange (gains) / losses (92,518) (128,360) 175,038 Adjust for changes in assets and liabilities (Increase) / decrease in trade and other receivables (517,383) 124,889 204,501 (Increase) / decrease in prepayments and other assets (42,885) 14,843 103,488 Increase / (decrease) in trade and other payables 60,178 47,027 60,120 Increase / (decrease) in provisions (20,482) (122,176) 62,636 Net cash flows from / (used in) operating activities (6,073,182) (5,636,533) (6,813,639) Financing facilities available As at June 30, 2019, the following financing facilities had been negotiated and were available: Total facilities Credit cards 95,714 183,770 306,128 Facilities used as at reporting date Credit cards (6,516) (12,031) (12,428) Facilities unused as at reporting date Credit cards 89,198 171,739 293,700 |
TRADE AND OTHER RECEIVABLES (_2
TRADE AND OTHER RECEIVABLES (CURRENT) (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
TRADE AND OTHER RECEIVABLES (CURRENT) | |
Schedule of trade and other receivables (current) | Consolidated 2019 2018 A$ A$ Trade receivables 16,529 10,503 Less: 2019: Impairment allowance / 2018: provision for doubtful debts — — Net trade receivables 16,529 10,503 Other receivables* 802,237 290,880 Total net current trade and other receivables 818,766 301,383 · Other receivables majorly consists of R&D income grant receivable. |
PREPAYMENTS AND OTHER ASSETS _2
PREPAYMENTS AND OTHER ASSETS (CURRENT) (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
PREPAYMENTS AND OTHER ASSETS (CURRENT) | |
Schedule of prepayments and other assets (current) | 2019 2018 A$ A$ Prepayments 159,844 139,767 Inventories at the lower of cost and net realizable value 31,865 59,007 Performance bond and deposits 53,456 3,505 Total current prepayments and other assets 245,165 202,279 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
PROPERTY, PLANT AND EQUIPMENT | |
Schedule of property, plant and equipment | Consolidated 2019 2018 A$ A$ Laboratory equipment, at cost 1,451,389 1,451,389 Less: accumulated depreciation (1,410,877) (1,355,397) Net laboratory equipment 40,512 95,992 Computer equipment, at cost 609,550 609,550 Add: additions during the year 47,715 — Less: accumulated depreciation (628,868) (563,208) Net computer equipment 28,397 46,342 Office equipment, at cost 167,564 167,564 Less: accumulated depreciation (167,564) (166,807) Net office equipment — 757 Equipment under hire purchase, at cost 594,626 594,626 Less: accumulated depreciation (594,626) (594,626) Net equipment under hire purchase — — Leasehold improvements, at cost 462,797 462,797 Add: additions during the year 2,583 Less: accumulated depreciation (464,956) (430,604) Net leasehold improvements 424 32,193 Total net property, plant and equipment 69,333 175,284 Reconciliation of property, plant and equipment Opening gross carrying amount 3,285,926 3,283,541 Add: additions purchased during the year 50,297 2,385 Less: disposals made during the year — — Closing gross carrying amount 3,336,223 3,285,926 Opening accumulated depreciation and impairment losses (3,110,642) (2,806,893) Add: disposals made during the year — — Less: depreciation expense charged (156,248) (303,749) Closing accumulated depreciation and impairment losses (3,266,890) (3,110,642) Total net property, plant and equipment 69,333 175,284 Opening Closing net carrying Additions Disposals Depreciation net carrying amount during year during year expense amount Asset category A$ A$ A$ A$ A$ Laboratory equipment 95,992 — — (55,480) 40,512 Computer equipment 46,342 47,714 — (66,416) 28,397 Leasehold improvements 32,193 2,583 — (34,352) 424 Totals 175,284 50,297 — (156,248) 69,333 |
TRADE AND OTHER PAYABLES (CUR_2
TRADE AND OTHER PAYABLES (CURRENT) (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
TRADE AND OTHER PAYABLES (CURRENT) | |
Schedule of trade and other payables | Consolidated 2019 2018 A$ A$ Trade payables 590,231 535,924 Other payables 68,423 222,502 Accrued expenses 346,654 186,704 Total current trade and other payables 1,005,308 945,130 |
PROVISIONS (CURRENT AND NON-C_2
PROVISIONS (CURRENT AND NON-CURRENT) (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
PROVISIONS (CURRENT AND NON-CURRENT) | |
Schedule of current and non-current provisions | 2019 2018 A$ A$ Current provisions Annual leave 152,352 145,449 Long service leave 243,740 268,544 Make good * 91,590 91,590 Total current provisions 487,682 505,583 Non-current provisions Long service leave 809 3,390 Make good * — — Total non-current provisions 809 3,390 Total provisions 488,491 508,973 * Make good provision |
Schedule of reconciliation of provision | Consolidated 2019 2018 A$ A$ Reconciliation of annual leave provision Balance at the beginning of the financial year 145,499 239,821 Add: obligation accrued during the year 91,106 155,967 Less: utilized during the year (84,253) (250,289) Balance at the end of the financial year 152,352 145,499 Reconciliation of long service leave provision Balance at the beginning of the financial year 271,933 299,739 (Less)/ Add: obligation accrued during the year 10,226 (27,806) Less: utilized during the year (37,610) — Balance at the end of the financial year 244,549 271,933 |
CONTRIBUTED EQUITY (Tables)
CONTRIBUTED EQUITY (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
CONTRIBUTED EQUITY | |
Schedule of issued and paid-up capital | Consolidated 2019 2018 A$ A$ Issued and paid-up capital Fully paid Ordinary Shares 125,498,824 122,372,662 Total contributed equity 125,498,824 122,372,662 |
Schedule of movements in shares on issue | Year ended June 30, 2018 Shares $ Balance at the beginning of the financial year 2,435,282,724 122,382,625 Less: transaction costs arising on share issue — (9,963) Balance at the end of the financial year 2,435,282,724 122,372,662 Year ended June 30, 2019 Shares $ Balance at the beginning of the financial year 2,435,282,724 122,372,662 Shares issued during the year 502,851,419 3,557,509 Less: transaction costs arising on share issue (431,347) Balance at the end of the financial year 2,938,134,143 125,498,824 |
RESERVES (Tables)
RESERVES (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
RESERVES | |
Schedule of reserves | Consolidated 2019 2018 A$ A$ Foreign currency translation 789,598 765,930 Share-based payments 5,220,334 4,885,232 Total reserves 6,009,932 5,651,162 Reconciliation of foreign currency translation reserve Balance at the beginning of the financial year 765,930 1,288,896 Add: net currency translation gain / (loss) 23,668 (522,966) Balance at the end of the financial year 789,598 765,930 Reconciliation of share-based payments reserve Balance at the beginning of the financial year 4,885,232 4,755,597 Add: share-based payments expense 341,201 129,635 Less: Reversal of forfeited/lapsed options (6,099) Balance at the end of the financial year 5,220,334 4,885,232 |
ACCUMULATED LOSSES (Tables)
ACCUMULATED LOSSES (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
ACCUMULATED LOSSES | |
Schedule of accumulated losses | Balance at the beginning of the financial year (123,311,946) (117,848,074) Add: net loss attributable to owners of Genetic Technologies Limited (6,425,604) (5,463,872) Balance at the end of the financial year (129,737,550) (123,311,946) |
OPTIONS (Tables)
OPTIONS (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
OPTIONS | |
Schedule of number and weighted average exercise prices of share options | Ave. exercise price Number of options and per option performance rights As at 1 July $ 0.017 55,102,778 Granted to KentGrove Capital $ 0.015 12,500,000 Granted to employees during the year $ 0.010 16,000,000 Lapsed during the year $ 0.020 (19,236,111) Forfeited during the year $ 0.001 (6,000,000) Lapse of unlisted options attached to convertible notes $ 0.015 (20,366,667) As at 30 June $ 0.015 38,000,000 Note: On August 8, 2018, the Company announced that it issued the following securities to Kentgrove Capital Pty Ltd: · 8,833,100 Shares in lieu of payment of the Establishment Fee (Establishment Shares); · 12,500,000 Options exercisable at $0.0153 each and expiring 3 years after issue (Establishment Options); and · 100,000,000 Shares as security for the Company's obligations under the Kentgrove Facility (Collateral Shares). |
Summary of options over ordinary shares outstanding | Weighted ave. Weighted ave. 2019 exercise price 2018 exercise price Unlisted employee options (refer below) 25,500,000 $ 0.015 34,736,111 $ 0.017 Unlisted options attached to convertible notes — — 20,366,667 $ 0.015 Unlisted options granted to KentGrove Capital 12,500,000 $ 0.015 — — 38,000,000 $ 0.015 55,102,778 $ 0.016 |
Schedule of number of options granted under the plans | Weighted ave. Weighted ave. 2019 exercise price 2018 exercise price Unlisted employee options Balance at the beginning of the financial year 34,736,111 $ 0.017 54,736,111 $ 0.016 Add: options granted during the year 16,000,000 $ 0.010 — — Less: options lapsed during the year (19,236,111) $ 0.020 — — Less: options forfeited during the year (6,000,000) $ 0.010 (20,000,000) $ 0.014 Balance at the end of the financial year 25,500,000 $ 0.015 34,736,111 $ 0.017 |
ASX code | |
OPTIONS | |
Schedule of number of options granted under the plans | Weighted ave. Weighted ave. Option description 2019 exercise price 2018 exercise price Unlisted employee options Options to Kentgrove (expiring August 8, 2021) 12,500,000 $ 0.015 — — GTGAD (expiring September 14, 2020) — — — — GTGAD (expiring November 24, 2020) — — 19,236,111 $ 0.020 GTGAD (expiring March 31, 2021) 5,000,000 $ 0.020 5,000,000 $ 0.020 GTGAD (expiring February 16, 2022) 5,500,000 $ 0.010 10,500,000 $ 0.010 ESOP options (expiring December 11, 2021) 15,000,000 $ 0.010 — — Balance at the end of financial year 38,000,000 $ 0.015 34,736,111 $ 0.017 Unlisted options attached to convertible notes GTGAC (expiring December 2, 2018) — — 20,366,667 $ 0.015 Balance at the end of the financial year 38,000,000 $ 0.015 55,102,778 $ 0.016 Exercisable at the end of the financial year 38,000,000 $ 0.015 48,102,778 $ 0.017 |
Kentgrove Capital Pty Ltd | |
OPTIONS | |
Schedule of fair value of each option granted by an external valuer | 2019 Grant Date 08 Aug 2018 Options issued 12,500,000 Dividend yield — Historic volatility and expected volatility 80 % Option exercise price $ 0.0153 Weighted average exercise price $ 0.0153 Risk-free interest rate 2.02 % Expected life of an option 3 years Model used Black-Scholes Fair value of options at grant date $ 0.0040 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
SEGMENT INFORMATION | |
Summary of reportable segments financial information | Revenues and income Segment Sales Other Totals Profit / (loss) A$ A$ A$ A$ Operations 2019 25,444 1,019,769 1,045,213 (6,425,604) 2018 189,254 441,476 630,730 (5,463,872) 2017 518,506 344,112 862,618 (8,403,826) Amortization Purchases of Segment Assets Liabilities /depreciation equipment A$ A$ A$ A$ Operations 2019 3,265,005 (1,493,799) (156,248) 5,353 2018 6,165,981 (1,454,103) (303,749) 2,385 2017 12,108,297 (1,529,253) (371,611) 234,799 |
Summary of geographical information | Revenues and income Sales Other Totals Profit/(Loss) A$ A$ A$ A$ Australia 2019 5,247 1,019,769 1,025,016 (5,791,950) 2018 — 441,476 441,476 (3,504,098) 2017 18,215 344,112 362,327 (7,000,994) U.S. 2019 20,197 — 20,197 (633,654) 2018 189,254 — 189,254 (1,959,774) 2017 500,291 — 500,291 (1,371,001) Other 2019 — — — — 2018 — — — — 2017 — — — (31,831) Totals 2019 25,444 1,019,769 1,045,213 (6,425,604) 2018 189,254 441,476 630,730 (5,463,872) 2017 518,506 344,112 862,618 (8,403,826) |
Summary of intersegment balances and transactions | Consolidated 2019 2018 2017 A$ A$ A$ Foreign exchange gain (U.S.) and foreign exchange loss (Australia) 291,542 981,141 776,295 Cost of sales (U.S.) and sales (Australia) 9,708 38,352 74,762 |
SHARE BASED PAYMENTS (Tables)
SHARE BASED PAYMENTS (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
SHARE BASED PAYMENTS | |
Schedule of independent valuation of performance rights granted | Valuation of Class A Performance Rights Number of Performance Valuation per Total fair value of Class A Expense accounted for Rights issued Class A (cents) Performance Rights during the year Dr Paul Kasian 7,500,000 0.77 $ 57,750 $ 11,229 Dr Lindsay Wakefield 3,750,000 0.77 $ 28,875 $ 5,614 Dr George Muchnicki 6,250,000 0.77 $ 48,125 $ 9,358 Mr Peter Rubinstein 5,000,000 0.77 $ 38,500 $ 7,486 Mr Sam Lee 3,750,000 0.77 $ 28,875 $ 5,614 Valuation of Class B Performance Rights Number of Performance Valuation per Class B Performance Expense accounted for Rights issued Class B (cents) Rights during the year Dr Paul Kasian 25,000,000 0.77 $ 192,500 $ 37,431 Valuation of Class C Performance Rights Number of Performance Valuation per Class C Performance Expense accounted for Rights issued Class C (cents) Rights during the year Dr Paul Kasian 25,000,000 0.57 $ 142,500 $ 27,708 |
Schedule of expenses arising from share-based payment transactions recognized as part of employee benefit expense | Consolidated 2019 2018 2017 Kentgrove options issued 15,278 — — Performance rights issued 104,441 — 120,287 Options issued under employee option plan 215,383 129,635 120,287 Total expenses arising from share-based payments 335,102 129,635 120,287 |
Phenogen Sciences Inc. | |
SHARE BASED PAYMENTS | |
Schedule of fair value of each option granted by an external valuer | 2017 Grant Date 17 Feb 2017 Options issued 1,250,000 Dividend yield — Historic volatility and expected volatility 60 % Option exercise price $ 0.010 Weighted average exercise price $ 0.010 Risk-free interest rate 2.19 % Expected life of an option 4.5 years Model used Black-Scholes Fair value of options at grant date $ 0.0050 |
Employee option plan | |
SHARE BASED PAYMENTS | |
Schedule of fair value of each option granted by an external valuer | 2019 Grant Date 12 Dec 2018 Options issued 16,000,000 Dividend yield — Historic volatility and expected volatility 80 % Option exercise price $ 0.010 Weighted average exercise price $ 0.030 Risk-free interest rate 2.02 % Expected life of an option 2.8 years Model used Black-Scholes Fair value of options at grant date $ 0.0051 |
Employee option plan | Phenogen Sciences Inc. | |
SHARE BASED PAYMENTS | |
Schedule of fair value of each option granted by an external valuer | 2017 2016 Grant Date 17 Feb 2017 1 April 2016 25 Nov 2015 Options issued 1,250,000 500,000 1,500,000 Dividend yield — — — Historic volatility and expected volatility 60 % 80 % 80 % Option exercise price $ 0.010 $ 0.039 $ 0.058 Fair value of options at grant date $ 0.0050 $ 0.0065 $ 0.0139 Weighted average exercise price $ 0.010 $ 0.039 $ 0.058 Risk-free interest rate 2.19 % 1.93 % 2.22 % Expected life of an option 4.5 years 4.3 years 4.5 years Model used Black-Scholes Black-Scholes Black-Scholes |
Employee option plan | KMP | |
SHARE BASED PAYMENTS | |
Schedule of fair value of each option granted by an external valuer | 2017 Grant Date 17 Feb 2017 Options issued 21,500,000 Dividend yield — Historic volatility and expected volatility 60 % Option exercise price $ 0.010 Weighted average exercise price $ 0.010 Risk-free interest rate 2.19 % Expected life of an option 4.5 years Model used Black-Scholes Fair value of options at grant date $ 0.0050 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
COMMITMENTS AND CONTINGENCIES | |
Schedule of Operating lease expenditure commitments | Consolidated 2019 2018 2017 Operating lease expenditure commitments A$ A$ A$ Minimum operating lease payments - not later than one year 250,068 41,625 227,992 - later than one year but not later than five years 266,560 — 35,676 - later than five years — — — Total minimum operating lease payments 516,628 41,625 263,668 As at June 30, 2019, the above operating leases related to the following premises that are currently occupied by the Company: Minimum Date of expiry payments Location Landlord Use of lease ($) 60‑66 Hanover Street Crude Pty. Ltd. Office / laboratory August 31, 2021 487,837 1300 Baxter Street, Suite 157, Charlotte, North Carolina Mid-Town Partners LLC Office Month to month 28,791 Total 516,628 |
AUDITORS' REMUNERATION (Tables)
AUDITORS' REMUNERATION (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
AUDITORS' REMUNERATION | |
Schedule of Auditor's remuneration | Consolidated 2019 2018 2017 A$ A$ A$ Audit and assurance services PricewaterhouseCoopers in respect of: Audit(1) 288,000 288,200 325,972 Audit related — — 107,451 Other audit firms in respect of: Audit of the Financial Reports of subsidiaries — — 4,070 Total remuneration in respect of audit services 288,000 288,200 437,493 (1) Audit fees consist of services that would normally be provided in connection with statutory and regulatory filings or engagements, including services that generally only the independent accountant can reasonably provide. |
RELATED PARTY DISCLOSURES (Tabl
RELATED PARTY DISCLOSURES (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
RELATED PARTY DISCLOSURES | |
Schedule of remuneration of Key Management Personnel | Directors · Dr Paul Kasian (Former Chairman and Interim CEO) (resigned September 24, 2019) · Dr Lindsay Wakefield (Non-Executive) · Dr Jerzy Muchnicki (Executive Director and Interim CEO) (appointed on September 24, 2019) · Mr Peter Rubinstein (Non-Executive) · Mr Xue Lee (Non-Executive) (resigned on July 9, 2019) Executives · Dr Richard Allman (Scientific Director) · Mr Paul Viney (Chief Financial Officer, Chief Operating Officer and Company Secretary) (appointed on December 15, 2018 and resigned on July 15, 2019) · Kevin Fischer (Chief Financial Officer) (resigned on December 31, 2018) Consolidated 2019 2018 2017 A$ A$ A$ Remuneration of Key Management Personnel Short-term employee benefits 964,162 1,215,632 1,533,457 Post-employment benefits 86,130 96,315 101,320 Share-based payments 157,886 130,385 121,269 Other long-term benefits 734 2,371 61,594 Termination benefits — 164,760 — Total remuneration of Key Management Personnel 1,208,912 1,609,463 1,817,640 |
SUBSIDIARIES (Tables)
SUBSIDIARIES (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
SUBSIDIARIES | |
Schedule of subsidiary undertakings | Company interest (%) Net carrying value ($) Name of Company Incorporation details 2019 2018 2019 2018 Entities held directly by parent GeneType Pty. Ltd. September 5, 1990 100 % 100 % — — Genetic Technologies Corporation Pty. Ltd. October 11, 1996 100 % 100 % 2 2 Gene Ventures Pty. Ltd. * March 7, 2001 100 % 100 % 10 10 GeneType AG ** February 13, 1989 — — — — GeneType Corporation December 18, 1989 100 % 100 % — — Phenogen Sciences Inc. (BREVAGen TM ) June 28, 2010 100 % 100 % 11,006 11,006 Genetic Technologies HK Ltd March 18, 2019 100 % N/A — — Total carrying value 11,018 11,018 * On 26 April 2018, the name of RareCellect Pty Ltd (ACN 096 135 9847) was changed to Gene Ventures Pty Ltd (ACN 096 135 947) ** Liquidation of GeneType AG was completed on 13 December 2017 |
FINANCIAL RISK MANAGEMENT (Tabl
FINANCIAL RISK MANAGEMENT (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
FINANCIAL RISK MANAGEMENT | |
Schedule of financial instruments | Consolidated 2019 2018 A$ A$ Financial assets Cash at bank / on hand 2,131,741 5,487,035 Trade and other receivables 818,766 301,383 Performance bond and deposits 53,456 3,505 Total financial assets 3,003,963 5,791,923 Financial liabilities Trade and other payables 1,005,308 945,130 Total financial liabilities 1,005,308 945,130 |
Schedule of analysis of aging of trade and other receivables | Consolidated 2019 2018 A$ A$ Net trade and other receivables Current (less than 30 days) 802,237 294,454 31 days to 60 days 11,159 3,142 61 days to 90 days (note) — 783 Greater than 90 days (note) 5,370 3,004 Total net trade and other receivables (Note 12) 818,766 301,383 |
Schedule of financial assets and liabilities that were denominated in foreign currencies | As at June 30, 2019, the Company held the following financial assets and liabilities that were denominated in foreign currencies: Consolidated Year USD EUR CHF Financial assets Cash at bank / on hand 2019 201,737 27,052 — 2018 2,154,291 28,952 — Bonds and deposits 2019 1,986 — — 2018 3,505 — — Total financial assets 2019 203,723 27,052 — 2018 2,157,796 28,952 — Financial liabilities Trade and other payables 2019 117,992 1,900 — 2018 116,063 — — Total financial liabilities 2019 117,992 1,900 — 2018 116,063 — — |
Schedule of exposure to interest rate risks and effective interest rates of financial assets and liabilities | Carrying Weighted ave. Ave. maturity Floating rate Fixed rate amount effective rate Period Consolidated Year A$ A$ A$ % Days Financial assets Cash at bank / on hand 2019 2,131,741 2,131,741 1.74 % At call 2018 2,394,754 — 2,394,754 1.74 % At call Performance bond / deposits 2019 53,456 53,456 — At call 2018 — 3,505 3,505 — At call Totals 2019 2,131,741 53,456 2,131,741 2018 2,394,754 3,505 2,398,259 Financial liabilities Financial liabilities at fair value through profit or loss 2019 — — — — — 2018 — — — — — Totals 2019 — — — 2018 — — — |
Schedule of liquidity risk | < 6 months 6 to 12 months 1 to 5 years > 5 years Totals Consolidated Year A$ A$ A$ A$ A$ Financial assets Cash at bank / on hand 2019 2018 5,487,035 — — — 5,487,035 Trade and other receivables 2019 818,766 818,766 2018 301,383 — — — 301,383 Performance bond and deposits 2019 53,456 53,456 2018 3,505 — — — 3,505 Total financial assets 2019 3,003,963 3,003,963 2018 5,791,923 — — — 5,791,923 Financial liabilities Trade and other payables 2019 1,005,308 1,005,308 2018 945,130 — — — 945,130 Total financial liabilities 2019 1,005,308 1,005,308 2018 945,130 — — — 945,130 Net maturity 2019 (1,998,655) (1,998,655) 2018 4,846,793 — — — 4,846,793 The Company had access to the following undrawn borrowing facility as at June 30, 2019: Facility limit Amount used Amount available Nature of facility A$ A$ A$ Credit card facility 95,714 (6,516) 89,198 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended | ||||
Jun. 30, 2019AUD ($)subsidiary | Jun. 30, 2018AUD ($) | Jun. 30, 2017AUD ($) | Aug. 08, 2018AUD ($) | Jun. 30, 2015AUD ($) | |
Basis of preparation | |||||
Total comprehensive loss | $ (6,401,936) | $ (5,986,838) | $ (8,534,481) | ||
Net cash outflow from operations | (6,073,182) | (5,636,533) | (6,852,404) | ||
Total cash and cash equivalents | 2,131,741 | $ 5,487,035 | 10,988,255 | $ 11,179,687 | |
Proceeds from issuing shares | 3,557,509 | $ 8,049,369 | |||
Operating lease commitments | 487,849 | ||||
Decrease in net current assets | 14,712 | ||||
Repayment of lease liabilities | $ 221,281 | ||||
Foreign currency translation | |||||
Number of overseas subsidiaries | subsidiary | 2 | ||||
Revenue recognition | |||||
Maximum annual aggregate turnover to avail refundable tax offset | $ 20,000,000 | ||||
Equity Placement Facility with Kentgrove Capital Private Limited | |||||
Basis of preparation | |||||
Equity capital | $ 20,000,000 | ||||
Individual placements | $ 1,000,000 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Share-based payment and performance rights transactions (Details) | Oct. 05, 2018AUD ($) | Jun. 30, 2019AUD ($)$ / shares |
SHARE BASED PAYMENTS | ||
Volatility measure | 80.00% | |
Maximum | ||
SHARE BASED PAYMENTS | ||
Exercise price (cents) | $ 1.5 | |
Percentage of discount or premium on share options | 50.00% | |
Minimum | ||
SHARE BASED PAYMENTS | ||
Exercise price (cents) | $ 0.5 | |
Percentage of discount or premium on share options | 50.00% | |
Performance rights | ||
SHARE BASED PAYMENTS | ||
Exercise price (cents) | $ 0 | |
Share price | $ 1.1 | |
Consecutive share price hurdle (in days) | 10 days | |
Risk-free interest rate | 2.02% | |
Expected life of an option | 2 years 9 months 18 days | |
Class A Performance Rights | ||
SHARE BASED PAYMENTS | ||
Share price, VWAP hurdle | 2 | |
Class B Performance Rights | ||
SHARE BASED PAYMENTS | ||
Share price, VWAP hurdle | 2 | |
Class C Performance Rights | ||
SHARE BASED PAYMENTS | ||
Share price, VWAP hurdle | 3.3 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property, plant and equipment (Details) | 12 Months Ended |
Jun. 30, 2019 | |
Laboratory equipment | Minimum | |
Property Plant and Equipment | |
Estimated useful lives (in years) | 3 years |
Laboratory equipment | Maximum | |
Property Plant and Equipment | |
Estimated useful lives (in years) | 5 years |
Computer equipment | |
Property Plant and Equipment | |
Estimated useful lives (in years) | 3 years |
Office equipment | Minimum | |
Property Plant and Equipment | |
Estimated useful lives (in years) | 3 years |
Office equipment | Maximum | |
Property Plant and Equipment | |
Estimated useful lives (in years) | 5 years |
Leasehold improvements | Minimum | |
Property Plant and Equipment | |
Lease term (in years) | 1 year |
Leasehold improvements | Maximum | |
Property Plant and Equipment | |
Lease term (in years) | 3 years |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Intangible assets (Details) | 12 Months Ended |
Jun. 30, 2019 | |
Patents | |
Intangible assets and impairment of assets | |
Useful lives of intangible assets (in years) | 10 years |
COST OF SALES (Details)
COST OF SALES (Details) - AUD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
COST OF SALES | |||
Inventories used | $ 55,995 | $ 93,869 | $ 172,070 |
Direct labour costs | 103,601 | 88,690 | 152,767 |
Depreciation expense | 55,480 | 65,853 | 71,139 |
Inventories written off | 61,191 | 51,676 | 96,441 |
Total cost of sales | 276,267 | 300,088 | 492,417 |
Inventories expired during the year | $ 0 | $ 24,506 | $ 53,856 |
NON OPERATING INCOME AND EXPE_3
NON OPERATING INCOME AND EXPENDITURE (Details) - AUD ($) | 12 Months Ended | |||||
Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | |
NON OPERATING INCOME AND EXPENDITURE | ||||||
Net profit on disposal of plant and equipment | $ 52,188 | |||||
Research and development tax incentive | $ 856,707 | $ 299,351 | 253,159 | |||
Export Marketing & Development Grant | 126,907 | |||||
Interest income | 25,794 | 15,218 | 38,765 | |||
Other income | 137,268 | |||||
Total non operating income and expenditure | $ 1,019,769 | $ 1,019,769 | $ 441,476 | $ 441,476 | $ 344,112 | $ 344,112 |
FOREIGN EXCHANGE GAIN RECLASS_3
FOREIGN EXCHANGE GAIN RECLASSIFIED ON LIQUIDATION OF SUBSIDIARY (Details) - AUD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
FOREIGN EXCHANGE GAIN RECLASSIFIED ON LIQUIDATION OF SUBSIDIARY | ||
Reclassification of net foreign exchange gains previously recognised in other comprehensive income, reclassified to profit or loss | $ 0 | |
Total gain on liquidation of subsidiary | $ 0 | $ 527,049 |
OTHER GAINS _ (LOSSES) (Details
OTHER GAINS / (LOSSES) (Details) - AUD ($) | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Jun. 30, 2019 | Aug. 31, 2018 | |
Disclosure of Other Gains or Losses [Line Items] | |||
Net foreign exchange gains / (losses) | $ 92,518 | ||
Net impairment losses | (500,000) | ||
Total other gains / (losses) | (407,482) | ||
Impairment of investments | 500,000 | ||
Swisstec [Member] | |||
Disclosure of Other Gains or Losses [Line Items] | |||
Investment in joint venture | $ 250,000 | ||
Blockshine Health Pty Ltd [Member] | |||
Disclosure of Other Gains or Losses [Line Items] | |||
Investment in joint venture | $ 250,000 | $ 250,000 | |
Ownership interest (as a percent) | 49.00% | 49.00% |
EXPENSES (Details)
EXPENSES (Details) - AUD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
EXPENSES | |||
Amortization of intangible assets | $ 63,783 | ||
Depreciation of fixed assets | $ 156,248 | $ 303,749 | 307,828 |
Employee benefits expenses | 2,414,408 | 2,657,232 | 3,594,936 |
Operating lease expenses | 312,956 | 326,192 | 310,413 |
Research and development expenses | $ 310,703 | $ 459,026 | $ 418,598 |
INCOME TAX - Reconciliation of
INCOME TAX - Reconciliation of income tax expense to prima facie tax payable (Details) - AUD ($) | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Reconciliation of income tax expense to prima facie tax payable | ||||
Loss before income tax expense | $ (6,425,604) | $ (5,463,872) | $ (8,403,826) | |
Tax at the Australian tax rate of 27.50% (2017: 27.50% and 2016: 28.50%) | $ (1,767,041) | (1,502,565) | $ (2,311,052) | |
Australian tax rate | 27.50% | 27.50% | 28.50% | |
Share-based payments expense | $ 92,153 | 35,650 | $ 33,079 | |
Research and development tax incentive | 541,596 | 148,346 | 108,163 | |
Other non-deductible items | 590 | 1,509 | 1,257 | |
Other assessable items | 81,155 | |||
Income tax expenses before unrecognized tax losses | (1,132,702) | (1,317,060) | (2,087,398) | |
Difference in overseas tax rates | 41,009 | 67,557 | (96,775) | |
Under /(over) provision | 1,126,722 | (268,092) | (75,054) | |
Temporary differences not recognized | (121,965) | |||
Research and development tax credit | (238,084) | (82,322) | (69,619) | |
Tax losses not recognized | $ 325,020 | $ 1,599,917 | $ 2,328,846 |
INCOME TAX - Net deferred tax a
INCOME TAX - Net deferred tax assets (Details) - AUD ($) | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 |
Net deferred tax assets | |||
Total deferred tax assets | $ 2,314,369 | $ 2,499,844 | $ 2,659,827 |
Net deferred tax assets on temporary differences not brought to account | (2,314,369) | (2,499,844) | (2,659,827) |
Property, plant and equipment | |||
Net deferred tax assets | |||
Total deferred tax assets | 863 | 1,381 | 2,802 |
Capital raising costs | |||
Net deferred tax assets | |||
Total deferred tax assets | 232,328 | 347,370 | 320,417 |
Intangible assets | |||
Net deferred tax assets | |||
Total deferred tax assets | 1,893,220 | 1,949,601 | 2,003,505 |
Provisions | |||
Net deferred tax assets | |||
Total deferred tax assets | $ 187,958 | $ 201,492 | $ 333,103 |
INCOME TAX - Tax losses (Detail
INCOME TAX - Tax losses (Details) - AUD ($) | 12 Months Ended | |||||
Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2018 | |
INCOME TAX | ||||||
Unused tax losses for which no deferred tax asset recognized | $ 90,254,547 | $ 80,706,629 | $ 87,970,140 | |||
Potential tax benefit | $ 23,104,882 | $ 22,194,323 | 22,596,182 | |||
Applicable tax rate | 27.50% | 27.50% | 28.50% | |||
Unrecognized temporary differences associated with the Group's investments in subsidiaries | $ 0 | 0 | ||||
USA | ||||||
INCOME TAX | ||||||
Applicable tax rate | 21.00% | 35.00% | ||||
Expiration period limitation on carry forward net operating losses | 20 years | |||||
United States (U.S.) | ||||||
INCOME TAX | ||||||
Potential tax benefit | $ 5,541,152 | 5,155,038 | ||||
Australia | ||||||
INCOME TAX | ||||||
Potential tax benefit | $ 17,563,730 | $ 17,441,144 |
LOSS PER SHARE (Details)
LOSS PER SHARE (Details) - AUD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
LOSS PER SHARE | |||
Loss for the year attributable to the owners of Genetic Technologies Limited | $ (6,425,604) | $ (5,463,872) | $ (8,403,826) |
Weighted average number of Ordinary Shares used in calculating loss per share | 2,635,454,870 | 2,435,282,724 | 2,121,638,888 |
Number of options outstanding excluded from calculation diluted earnings per share | 114,250,000 | 55,102,778 | 75,102,778 |
CASH AND CASH EQUIVALENTS (Deta
CASH AND CASH EQUIVALENTS (Details) - AUD ($) | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2015 | |
Reconciliation of cash and cash equivalents | ||||
Cash at bank and on hand | $ 2,131,741 | $ 5,487,035 | $ 10,988,255 | |
Total cash and cash equivalents | 2,131,741 | 5,487,035 | 10,988,255 | $ 11,179,687 |
Reconciliation of loss for the year after income tax to net cash flows used in operating activities is as follows: | ||||
Loss for the year after income tax | (6,425,604) | (5,463,872) | (8,403,826) | |
Adjust for non-cash items | ||||
Amortization and depreciation expenses | 156,260 | 303,749 | 371,611 | |
Impairment of intangible assets | 544,694 | |||
Impairment of investments | 500,000 | |||
Share-based payments expense | 335,102 | 129,635 | 120,287 | |
interest classified as investing cash flows | (25,850) | 15,219 | ||
Net (profit) / loss on disposal of plant and equipment | (52,188) | |||
Net (gains) / losses on liquidation of subsidiary | (527,049) | |||
Net foreign exchange (gains) / losses | (92,518) | (128,360) | 175,038 | |
Adjust for changes in assets and liabilities | ||||
(Increase) / decrease in trade and other receivables | (517,383) | 124,889 | 204,501 | |
(Increase) / decrease in prepayments and other assets | (42,885) | 14,843 | 103,488 | |
Increase / (decrease) in trade and other payables | 60,178 | 47,027 | 60,120 | |
Increase / (decrease) in provisions | (20,482) | (122,176) | 62,636 | |
Net cash flows from / (used in) operating activities | (6,073,182) | (5,636,533) | (6,813,639) | |
Financing facilities available | ||||
Total facilities - Credit cards | 95,714 | 183,770 | 306,128 | |
Facilities used as at reporting date - Credit cards | (6,516) | (12,031) | (12,428) | |
Facilities unused as at reporting date - Credit cards | $ 89,198 | $ 171,739 | $ 293,700 |
TRADE AND OTHER RECEIVABLES (_3
TRADE AND OTHER RECEIVABLES (CURRENT) (Details) | Jun. 30, 2019USD ($) | Jun. 30, 2019AUD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2018AUD ($) |
TRADE AND OTHER RECEIVABLES (CURRENT) | ||||
Trade receivables | $ 16,529 | $ 10,503 | ||
Net trade receivables | 16,529 | 10,503 | ||
Other receivables | 802,237 | 290,880 | ||
Total net current trade and other receivables | $ 0 | $ 818,766 | $ 7,114 | $ 301,383 |
PREPAYMENTS AND OTHER ASSETS _3
PREPAYMENTS AND OTHER ASSETS (CURRENT) (Details) - AUD ($) | Jun. 30, 2019 | Jun. 30, 2018 |
PREPAYMENTS AND OTHER ASSETS (CURRENT) | ||
Prepayments | $ 159,844 | $ 139,767 |
Inventories at the lower of cost and net realizable value | 31,865 | 59,007 |
Performance bond and deposits | 53,456 | 3,505 |
Total current prepayments and other assets | $ 245,165 | $ 202,279 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - AUD ($) | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 |
PROPERTY, PLANT AND EQUIPMENT | |||
Net carrying amount | $ 69,333 | $ 175,284 | |
At cost | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Net carrying amount | 3,336,223 | 3,285,926 | $ 3,283,541 |
Accumulated depreciation | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Net carrying amount | (3,266,890) | (3,110,642) | $ (2,806,893) |
Laboratory equipment | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Net carrying amount | 40,512 | 95,992 | |
Laboratory equipment | At cost | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Net carrying amount | 1,451,389 | 1,451,389 | |
Laboratory equipment | Accumulated depreciation | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Net carrying amount | (1,410,877) | (1,355,397) | |
Computer equipment | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Net carrying amount | 28,397 | 46,342 | |
Computer equipment | At cost | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Net carrying amount | 609,550 | 609,550 | |
Computer equipment | Accumulated depreciation | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Net carrying amount | (628,868) | (563,208) | |
Office equipment | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Net carrying amount | 757 | ||
Office equipment | At cost | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Net carrying amount | 167,564 | 167,564 | |
Office equipment | Accumulated depreciation | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Net carrying amount | (167,564) | (166,807) | |
Equipment under hire purchase | At cost | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Net carrying amount | 594,626 | 594,626 | |
Equipment under hire purchase | Accumulated depreciation | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Net carrying amount | (594,626) | (594,626) | |
Leasehold improvements | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Net carrying amount | 424 | 32,193 | |
Leasehold improvements | At cost | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Net carrying amount | 462,797 | 462,797 | |
Leasehold improvements | Accumulated depreciation | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Net carrying amount | $ (464,956) | $ (430,604) |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Reconciliation (Details) - AUD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Reconciliation of property, plant and equipment | |||
Opening balance | $ 175,284 | ||
Add: additions during the year | 50,297 | ||
Depreciation, property, plant and equipment | (156,248) | $ (303,749) | $ (307,828) |
Closing balance | 69,333 | 175,284 | |
Laboratory equipment | |||
Reconciliation of property, plant and equipment | |||
Opening balance | 95,992 | ||
Depreciation, property, plant and equipment | (55,480) | ||
Closing balance | 40,512 | 95,992 | |
Computer equipment | |||
Reconciliation of property, plant and equipment | |||
Opening balance | 46,342 | ||
Add: additions during the year | 47,714 | ||
Depreciation, property, plant and equipment | (66,416) | ||
Closing balance | 28,397 | 46,342 | |
Leasehold improvements | |||
Reconciliation of property, plant and equipment | |||
Opening balance | 32,193 | ||
Add: additions during the year | 2,583 | ||
Depreciation, property, plant and equipment | (34,352) | ||
Closing balance | 424 | 32,193 | |
At cost | |||
Reconciliation of property, plant and equipment | |||
Opening balance | 3,285,926 | 3,283,541 | |
Add: additions during the year | 50,297 | 2,385 | |
Closing balance | 3,336,223 | 3,285,926 | 3,283,541 |
At cost | Laboratory equipment | |||
Reconciliation of property, plant and equipment | |||
Opening balance | 1,451,389 | ||
Closing balance | 1,451,389 | 1,451,389 | |
At cost | Computer equipment | |||
Reconciliation of property, plant and equipment | |||
Opening balance | 609,550 | ||
Add: additions during the year | 47,715 | ||
Closing balance | 609,550 | 609,550 | |
At cost | Leasehold improvements | |||
Reconciliation of property, plant and equipment | |||
Opening balance | 462,797 | ||
Add: additions during the year | 2,583 | ||
Closing balance | 462,797 | 462,797 | |
Accumulated depreciation | |||
Reconciliation of property, plant and equipment | |||
Opening balance | (3,110,642) | (2,806,893) | |
Depreciation, property, plant and equipment | (156,248) | (303,749) | |
Closing balance | (3,266,890) | (3,110,642) | $ (2,806,893) |
Accumulated depreciation | Laboratory equipment | |||
Reconciliation of property, plant and equipment | |||
Opening balance | (1,355,397) | ||
Closing balance | (1,410,877) | (1,355,397) | |
Accumulated depreciation | Computer equipment | |||
Reconciliation of property, plant and equipment | |||
Opening balance | (563,208) | ||
Closing balance | (628,868) | (563,208) | |
Accumulated depreciation | Leasehold improvements | |||
Reconciliation of property, plant and equipment | |||
Opening balance | (430,604) | ||
Closing balance | $ (464,956) | $ (430,604) |
TRADE AND OTHER PAYABLES (CUR_3
TRADE AND OTHER PAYABLES (CURRENT) (Details) | Jun. 30, 2019CHF (SFr) | Jun. 30, 2019USD ($) | Jun. 30, 2019AUD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2018AUD ($) | Jun. 30, 2017CHF (SFr) |
TRADE AND OTHER PAYABLES (CURRENT) | ||||||
Trade payables | SFr 0 | $ 126,829 | $ 590,231 | $ 116,063 | $ 535,924 | SFr 380 |
Other payables | 68,423 | 222,502 | ||||
Accrued expenses | 346,654 | 186,704 | ||||
Total current trade and other payables | $ 1,005,308 | $ 945,130 |
PROVISIONS (CURRENT AND NON-C_3
PROVISIONS (CURRENT AND NON-CURRENT) (Details) - AUD ($) | Jun. 30, 2019 | Jun. 30, 2018 |
Current provisions | ||
Current provisions | $ 487,682 | $ 505,583 |
Non-current provisions | ||
Non-current provisions | 809 | 3,390 |
Total provisions | 488,491 | 508,973 |
Annual leave | ||
Current provisions | ||
Current provisions | 152,352 | 145,449 |
Long service leave | ||
Current provisions | ||
Current provisions | 243,740 | 268,544 |
Non-current provisions | ||
Non-current provisions | 809 | 3,390 |
Make good | ||
Current provisions | ||
Current provisions | $ 91,590 | $ 91,590 |
PROVISIONS (CURRENT AND NON-C_4
PROVISIONS (CURRENT AND NON-CURRENT) - Reconciliation of provision (Details) - AUD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Reconciliation of provision | ||
Current provisions | $ 487,682 | $ 505,583 |
Estimated term for provision settlement | 12 months | |
Annual leave | ||
Reconciliation of provision | ||
Balance at the beginning of the financial year | $ 145,499 | 239,821 |
(Less)/ Add: obligation accrued during the year | 91,106 | 155,967 |
Less: utilized during the year | (84,253) | (250,289) |
Balance at the end of the financial year | 152,352 | 145,499 |
Current provisions | 152,352 | 145,449 |
Long service leave | ||
Reconciliation of provision | ||
Balance at the beginning of the financial year | 271,933 | 299,739 |
(Less)/ Add: obligation accrued during the year | 10,226 | |
(Less)/ Add: obligation accrued during the year | (27,806) | |
Less: utilized during the year | (37,610) | |
Balance at the end of the financial year | 244,549 | 271,933 |
Current provisions | 243,740 | 268,544 |
Annual leave and long service leave | ||
Reconciliation of provision | ||
Non current provisions | $ 335,655 | $ 325,421 |
CONTRIBUTED EQUITY (Details)
CONTRIBUTED EQUITY (Details) | 12 Months Ended | ||
Jun. 30, 2019AUD ($)shares | Jun. 30, 2018AUD ($)shares | Jun. 30, 2019AUD ($)Vote$ / shares | |
Issued and paid-up capital | |||
Fully paid Ordinary Shares | $ 125,498,824 | $ 122,372,662 | |
Contributed equity | $ 122,372,662 | $ 122,382,625 | $ 125,498,824 |
Movements in number of shares on issue | |||
Balance at the beginning of the financial year | shares | 2,435,282,724 | 2,435,282,724 | |
Balance at the end of the financial year | shares | 2,938,134,143 | 2,435,282,724 | |
Movements in value of shares on issue | |||
Balance at the beginning of the financial year | $ 122,372,662 | $ 122,382,625 | |
Shares issued during the year (in shares) | shares | 502,851,419 | ||
Shares issued during the year | $ 3,557,509 | ||
Less: transaction costs arising on share issue | (431,347) | (9,963) | |
Balance at the end of the financial year | $ 125,498,824 | $ 122,372,662 | |
Par value | $ / shares | $ 0 | ||
Number of vote | Vote | 1 |
RESERVES (Details)
RESERVES (Details) - AUD ($) | 12 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | |
RESERVES | |||||
Foreign currency translation | $ 765,930 | $ 1,288,896 | $ 1,288,896 | $ 789,598 | $ 765,930 |
Share-based payments | 4,885,232 | 4,755,597 | 4,755,597 | 5,220,334 | 4,885,232 |
Total reserves | $ 6,009,932 | $ 5,651,162 | |||
Reconciliation of foreign currency translation reserve | |||||
Balance at the beginning of the financial year | 765,930 | 1,288,896 | |||
Add: net currency translation gain / (loss) | 23,668 | (522,966) | (130,655) | ||
Balance at the end of the financial year | 789,598 | 765,930 | 1,288,896 | ||
Reconciliation of share-based payments reserve | |||||
Balance at the beginning of the financial year | 4,885,232 | 4,755,597 | |||
Add: share-based payments expense | 341,201 | 129,635 | 120,287 | ||
Less: Reversal of forfeited/lapsed options | (6,099) | ||||
Balance at the end of the financial year | $ 5,220,334 | $ 4,885,232 | $ 4,755,597 |
ACCUMULATED LOSSES (Details)
ACCUMULATED LOSSES (Details) - AUD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
ACCUMULATED LOSSES | |||
Balance at the beginning of the financial year | $ (123,311,946) | $ (117,848,074) | |
Add: net loss attributable to owners of Genetic Technologies Limited | (6,425,604) | (5,463,872) | $ (8,403,826) |
Balance at the end of the financial year | $ (129,737,550) | $ (123,311,946) | $ (117,848,074) |
OPTIONS (Details)
OPTIONS (Details) | Dec. 12, 2018Option | Aug. 08, 2018USD ($)Optionshares | Jun. 30, 2019USD ($)YOption | Jun. 30, 2019AUD ($)YOption | Jun. 30, 2018USD ($)YOption | Jun. 30, 2018AUD ($)YOption |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Number of share options granted in share-based payment arrangement | 16,000,000 | 16,000,000 | ||||
Weighted average exercise price of options, balance at the beginning of the financial year (AUD/share) | $ 0.017 | $ 0.016 | ||||
Weighted average exercise price of options, granted during the year (AUD/share) | $ | 0.010 | |||||
Weighted average exercise price of options, lapsed during the year (AUD/share) | $ | 0.020 | |||||
Weighted average exercise price options forfeited during the year (AUD/share) | $ | (0.001) | |||||
Weighted average exercise price of options, balance at the end of the financial year (AUD/share) | $ 0.015 | $ 0.015 | $ 0.017 | $ 0.016 | ||
Balance at the beginning of the financial year (in shares) | 55,102,778 | 55,102,778 | ||||
Options issued | 16,000,000 | 16,000,000 | ||||
Options lapsed | (19,236,111) | (19,236,111) | ||||
Options forfeited | (6,000,000) | (6,000,000) | ||||
Balance at the end of the financial year (in shares) | 38,000,000 | 38,000,000 | 55,102,778 | 55,102,778 | ||
Weighted average remaining contractual life of outstanding share options | Y | 2.16 | 2.16 | 1.94 | 1.94 | ||
Kentgrove Capital Pty Ltd | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Number of share options granted in share-based payment arrangement | 12,500,000 | 12,500,000 | 12,500,000 | |||
Weighted average exercise price of options, granted during the year (AUD/share) | $ | $ 0.015 | |||||
Options issued | 12,500,000 | 12,500,000 | 12,500,000 | |||
Employee option plan | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Number of share options granted in share-based payment arrangement | 16,000,000 | 16,000,000 | 16,000,000 | 0 | 0 | |
Options issued | 16,000,000 | 16,000,000 | 16,000,000 | 0 | 0 | |
Establishment Shares [Member] | Kentgrove Capital Pty Ltd | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Shares issued | shares | 8,833,100 | |||||
Establishment options | Kentgrove Capital Pty Ltd | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Number of share options granted in share-based payment arrangement | 12,500,000 | |||||
Weighted average exercise price of options, granted during the year (AUD/share) | $ | $ 0.0153 | |||||
Options issued | 12,500,000 | |||||
Weighted average remaining contractual life of outstanding share options | $ | 3 | |||||
Collateral shares | Kentgrove Capital Pty Ltd | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Shares issued | shares | 100,000,000 | |||||
Unlisted options attached to convertible notes | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Weighted average exercise price of options, balance at the beginning of the financial year (AUD/share) | $ | $ 0.015 | |||||
Weighted average exercise price of options, lapsed during the year (AUD/share) | $ | $ 0.015 | |||||
Weighted average exercise price of options, balance at the end of the financial year (AUD/share) | $ | $ 0.015 | |||||
Balance at the beginning of the financial year (in shares) | 20,366,667 | 20,366,667 | ||||
Options lapsed | (20,366,667) | (20,366,667) | ||||
Balance at the end of the financial year (in shares) | 20,366,667 | 20,366,667 |
OPTIONS - Fair value of options
OPTIONS - Fair value of options (Details) | Aug. 08, 2018USD ($)Option$ / shares | Aug. 08, 2018AUD ($)Option | Jun. 30, 2019Option |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Number of share options granted in share-based payment arrangement | Option | 16,000,000 | ||
Kentgrove Capital Pty Ltd | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Number of share options granted in share-based payment arrangement | Option | 12,500,000 | 12,500,000 | 12,500,000 |
Historic volatility and expected volatility | 80.00% | 80.00% | |
Option exercise price | $ | $ 0.0153 | ||
Weighted average exercise price | $ | $ 0.0153 | ||
Risk-free interest rate | 2.02% | 2.02% | |
Expected life of an option | 3 years | 3 years | |
Fair value of options at grant date | $ / shares | $ 0.0040 |
OPTIONS - Options outstanding (
OPTIONS - Options outstanding (Details) | Jun. 30, 2019USD ($)Optionitememployee | Jun. 30, 2019AUD ($)Optionitememployee | Jun. 30, 2018USD ($)Option | Jun. 30, 2018AUD ($)Option | Jun. 30, 2017AUD ($)Option |
OPTIONS | |||||
Options outstanding (in shares) | 38,000,000 | 38,000,000 | 55,102,778 | 55,102,778 | |
Weighted average exercise price | $ 0.015 | $ 0.015 | $ 0.017 | $ 0.016 | |
Number of executives | item | 1 | 1 | |||
Number of employees | employee | 12 | 12 | |||
Unlisted employee options | |||||
OPTIONS | |||||
Options outstanding (in shares) | 25,500,000 | 25,500,000 | 34,736,111 | 34,736,111 | 54,736,111 |
Weighted average exercise price | $ | $ 0.015 | $ 0.017 | $ 0.016 | ||
Unlisted options attached to convertible notes | |||||
OPTIONS | |||||
Options outstanding (in shares) | 20,366,667 | 20,366,667 | |||
Weighted average exercise price | $ | $ 0.015 | ||||
Unlisted options granted to KentGrove Capital | |||||
OPTIONS | |||||
Options outstanding (in shares) | 12,500,000 | 12,500,000 | |||
Weighted average exercise price | $ | $ 0.015 |
OPTIONS - Movements in options
OPTIONS - Movements in options granted (Details) | Dec. 12, 2018Option | Jun. 30, 2019USD ($)Option | Jun. 30, 2019AUD ($)Option | Jun. 30, 2018USD ($)Option | Jun. 30, 2018AUD ($)Option |
Number of Options | |||||
Balance at the beginning of the financial year (in shares) | 55,102,778 | 55,102,778 | |||
Add: options granted during the year (in shares) | 16,000,000 | 16,000,000 | |||
Less: options lapsed during the year | (19,236,111) | (19,236,111) | |||
Less: options forfeited during the year (in shares) | (6,000,000) | (6,000,000) | |||
Balance at the end of the financial year (in shares) | 38,000,000 | 38,000,000 | 55,102,778 | 55,102,778 | |
Weighted average exercise price | |||||
Weighted average exercise price of options, balance at the beginning of the financial year (AUD/share) | $ 0.017 | $ 0.016 | |||
Weighted average exercise price of options, granted during the year (AUD/share) | $ | 0.010 | ||||
Weighted average exercise price of options, forfeited during the year (AUD/share) | $ | 0.001 | ||||
Weighted average exercise price of options, balance at the end of the financial year (AUD/share) | $ 0.015 | $ 0.015 | $ 0.017 | $ 0.016 | |
Unlisted employee options | |||||
Number of Options | |||||
Balance at the beginning of the financial year (in shares) | 34,736,111 | 34,736,111 | 54,736,111 | 54,736,111 | |
Add: options granted during the year (in shares) | 16,000,000 | 16,000,000 | |||
Less: options lapsed during the year | (19,236,111) | (19,236,111) | |||
Less: options forfeited during the year (in shares) | (6,000,000) | (6,000,000) | (20,000,000) | (20,000,000) | |
Balance at the end of the financial year (in shares) | 25,500,000 | 25,500,000 | 34,736,111 | 34,736,111 | |
Weighted average exercise price | |||||
Weighted average exercise price of options, balance at the beginning of the financial year (AUD/share) | $ | $ 0.017 | $ 0.016 | |||
Weighted average exercise price of options, granted during the year (AUD/share) | $ | 0.010 | ||||
Weighted average exercise price of options, exercised during the year (AUD/share) | $ | 0.020 | ||||
Weighted average exercise price of options, forfeited during the year (AUD/share) | $ | 0.010 | 0.014 | |||
Weighted average exercise price of options, balance at the end of the financial year (AUD/share) | $ | $ 0.015 | $ 0.017 | |||
Employee option plan | |||||
Number of Options | |||||
Add: options granted during the year (in shares) | 16,000,000 | 16,000,000 | 16,000,000 | 0 | 0 |
Less: options exercised during the year (in shares) | 0 | 0 | 0 | 0 |
OPTIONS - Options outstanding b
OPTIONS - Options outstanding by ASX code (Details) | Jun. 30, 2019USD ($)YOption | Jun. 30, 2019AUD ($)YOption | Jun. 30, 2018USD ($)YOption | Jun. 30, 2018AUD ($)YOption | Jun. 30, 2017AUD ($)Option |
OPTIONS | |||||
Balance at the end of the financial year (in shares) | 38,000,000 | 38,000,000 | 55,102,778 | 55,102,778 | |
Exercisable at the end of the financial year (in shares) | 38,000,000 | 38,000,000 | 48,102,778 | 48,102,778 | |
Weighted average exercise price of options, balance at the end of the financial year (AUD/share) | $ 0.015 | $ 0.015 | $ 0.017 | $ 0.016 | |
Weighted average exercise price of options, exercisable at the end of the financial year (AUD/share) | $ | $ 0.015 | $ 0.017 | |||
Weighted average remaining contractual life of options outstanding (in years) | Y | 2.16 | 2.16 | 1.94 | 1.94 | |
Unlisted employee options | |||||
OPTIONS | |||||
Balance at the end of the financial year (in shares) | 25,500,000 | 25,500,000 | 34,736,111 | 34,736,111 | 54,736,111 |
Weighted average exercise price of options, balance at the end of the financial year (AUD/share) | $ | $ 0.015 | $ 0.017 | $ 0.016 | ||
Unlisted options granted to KentGrove Capital | |||||
OPTIONS | |||||
Balance at the end of the financial year (in shares) | 12,500,000 | 12,500,000 | |||
Weighted average exercise price of options, balance at the end of the financial year (AUD/share) | $ | $ 0.015 | ||||
GTGAD (expiring November 24, 2020) | |||||
OPTIONS | |||||
Balance at the end of the financial year (in shares) | 19,236,111 | 19,236,111 | |||
Weighted average exercise price of options, balance at the end of the financial year (AUD/share) | $ | $ 0.020 | ||||
GTGAD (expiring March 31, 2021) | |||||
OPTIONS | |||||
Balance at the end of the financial year (in shares) | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | |
Weighted average exercise price of options, balance at the end of the financial year (AUD/share) | $ | $ 0.020 | $ 0.020 | |||
GTGAD (expiring February 16, 2022) | |||||
OPTIONS | |||||
Balance at the end of the financial year (in shares) | 5,500,000 | 5,500,000 | 10,500,000 | 10,500,000 | |
Weighted average exercise price of options, balance at the end of the financial year (AUD/share) | $ | $ 0.010 | $ 0.010 | |||
ESOP options (expiring December 11, 2021) | |||||
OPTIONS | |||||
Balance at the end of the financial year (in shares) | 15,000,000 | 15,000,000 | |||
Weighted average exercise price of options, balance at the end of the financial year (AUD/share) | $ | $ 0.010 | ||||
Unlisted options attached to convertible notes | |||||
OPTIONS | |||||
Balance at the end of the financial year (in shares) | 20,366,667 | 20,366,667 | |||
Weighted average exercise price of options, balance at the end of the financial year (AUD/share) | $ | $ 0.015 | ||||
GTGAC (expiring December 2, 2018) | |||||
OPTIONS | |||||
Balance at the end of the financial year (in shares) | 20,366,667 | 20,366,667 | |||
Weighted average exercise price of options, balance at the end of the financial year (AUD/share) | $ | $ 0.015 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) | 12 Months Ended | ||
Jun. 30, 2019AUD ($)segment | Jun. 30, 2018AUD ($) | Jun. 30, 2017AUD ($) | |
Operating Segments | |||
Number of operating segments | segment | 1 | ||
Profit (loss) | $ (6,425,604) | $ (5,463,872) | $ (8,403,826) |
Assets | 3,265,005 | 6,165,981 | |
Liabilities | (1,493,799) | (1,454,103) | |
Business segments | |||
Operating Segments | |||
Sales | 25,444 | 189,254 | 518,506 |
Other | 1,019,769 | 441,476 | 344,112 |
Totals | 1,045,213 | 630,730 | 862,618 |
Profit (loss) | (6,425,604) | (5,463,872) | (8,403,826) |
Assets | 3,265,005 | 6,165,981 | 12,108,297 |
Liabilities | (1,493,799) | (1,454,103) | (1,529,253) |
Amortization\depreciation | (156,248) | (303,749) | (371,611) |
Purchases of equipment | $ 5,353 | $ 2,385 | $ 234,799 |
SEGMENT INFORMATION - Geographi
SEGMENT INFORMATION - Geographic information (Details) - AUD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Operating Segments | |||
Profit (loss) | $ (6,425,604) | $ (5,463,872) | $ (8,403,826) |
Business segments | |||
Operating Segments | |||
Sales | 25,444 | 189,254 | 518,506 |
Other | 1,019,769 | 441,476 | 344,112 |
Totals | 1,045,213 | 630,730 | 862,618 |
Profit (loss) | (6,425,604) | (5,463,872) | (8,403,826) |
Business segments | Australia | |||
Operating Segments | |||
Sales | 5,247 | 18,215 | |
Other | 1,019,769 | 441,476 | 344,112 |
Totals | 1,025,016 | 441,476 | 362,327 |
Profit (loss) | (5,791,950) | (3,504,098) | (7,000,994) |
Business segments | USA | |||
Operating Segments | |||
Sales | 20,197 | 189,254 | 500,291 |
Totals | 20,197 | 189,254 | 500,291 |
Profit (loss) | $ (633,654) | $ (1,959,774) | (1,371,001) |
Business segments | Other | |||
Operating Segments | |||
Profit (loss) | $ (31,831) |
SEGMENT INFORMATION - Additiona
SEGMENT INFORMATION - Additional segment disclosures (Details) | 12 Months Ended | ||
Jun. 30, 2019AUD ($)customer | Jun. 30, 2018AUD ($)customer | Jun. 30, 2017AUD ($) | |
Additional segment disclosures | |||
Interest received | $ 25,790 | $ 15,218 | $ 38,765 |
Employee benefits expenses | 2,414,408 | 2,657,232 | 3,594,936 |
Intersegment balances and transactions | |||
Foreign exchange gains reclassified on liquidation of subsidiary | 92,518 | ||
Cost of sales (USA) and sales (Australia) | $ 276,267 | $ 300,088 | 492,417 |
Number of customer generated revenues representing more than 10% of total consolidated revenue from operations | customer | 0 | 0 | |
Intersegment | |||
Intersegment balances and transactions | |||
Foreign exchange gains reclassified on liquidation of subsidiary | $ 291,542 | $ 981,141 | 776,295 |
Cost of sales (USA) and sales (Australia) | $ 9,708 | $ 38,352 | $ 74,762 |
SHARE BASED PAYMENTS - Employee
SHARE BASED PAYMENTS - Employee option plan (Details) | Dec. 12, 2018USD ($)Option$ / shares | Dec. 12, 2018AUD ($)Option | Feb. 17, 2017USD ($)Optiontranche$ / shares | Feb. 17, 2017AUD ($)Optiontranche | Apr. 01, 2016USD ($)Option$ / shares | Apr. 01, 2016AUD ($)Option | Nov. 25, 2015USD ($)Option$ / shares | Nov. 25, 2015AUD ($)Option | Jun. 30, 2019Optionemployee | Jun. 30, 2018Optionemployee | Jun. 30, 2017Option | Jun. 30, 2016Optiontranche |
SHARE BASED PAYMENTS | ||||||||||||
Options issued | Option | 16,000,000 | |||||||||||
Employee option plan | ||||||||||||
SHARE BASED PAYMENTS | ||||||||||||
Options issued | Option | 16,000,000 | 16,000,000 | 16,000,000 | 0 | ||||||||
Historic volatility and expected volatility | 80.00% | 80.00% | ||||||||||
Option exercise price | $ 0.010 | |||||||||||
Weighted average exercise price | $ 0.030 | |||||||||||
Risk-free interest rate | 2.02% | 2.02% | ||||||||||
Expected life of an option | 2 years 9 months 18 days | 2 years 9 months 18 days | ||||||||||
Fair value of options at grant date | $ / shares | $ 0.0051 | |||||||||||
Number of employees | employee | 14 | |||||||||||
Phenogen Sciences Inc. | ||||||||||||
SHARE BASED PAYMENTS | ||||||||||||
Options issued | Option | 500,000 | 500,000 | ||||||||||
Historic volatility and expected volatility | 80.00% | 80.00% | ||||||||||
Option exercise price | $ 0.039 | |||||||||||
Weighted average exercise price | $ 0.039 | |||||||||||
Risk-free interest rate | 1.93% | 1.93% | ||||||||||
Fair value of options at grant date | $ / shares | $ 0.0065 | |||||||||||
Phenogen Sciences Inc. | Employee option plan | ||||||||||||
SHARE BASED PAYMENTS | ||||||||||||
Options issued | Option | 1,250,000 | 1,250,000 | 1,500,000 | 1,500,000 | 1,250,000 | 2,000,000 | ||||||
Number of tranches | tranche | 3 | 3 | 3 | |||||||||
Historic volatility and expected volatility | 60.00% | 60.00% | 80.00% | 80.00% | ||||||||
Option exercise price | $ 0.010 | $ 0.058 | ||||||||||
Weighted average exercise price | $ 0.010 | $ 0.010 | $ 0.058 | |||||||||
Risk-free interest rate | 2.19% | 2.19% | 2.22% | 2.22% | ||||||||
Expected life of an option | 4 years 6 months | 4 years 6 months | 4 years 3 months 18 days | 4 years 3 months 18 days | 4 years 6 months | 4 years 6 months | ||||||
Fair value of options at grant date | $ / shares | $ 0.0050 | $ 0.0139 | ||||||||||
Number of employees | employee | 1 | 1 | ||||||||||
KMP | Employee option plan | ||||||||||||
SHARE BASED PAYMENTS | ||||||||||||
Options issued | Option | 21,500,000 | 21,500,000 | 21,500,000 | |||||||||
Number of tranches | tranche | 3 | 3 | ||||||||||
Historic volatility and expected volatility | 60.00% | 60.00% | ||||||||||
Option exercise price | $ 0.010 | |||||||||||
Weighted average exercise price | $ 0.010 | |||||||||||
Risk-free interest rate | 2.19% | 2.19% | ||||||||||
Expected life of an option | 4 years 6 months | 4 years 6 months | ||||||||||
Fair value of options at grant date | $ / shares | $ 0.0050 |
SHARE BASED PAYMENTS - Performa
SHARE BASED PAYMENTS - Performance Rights Issuance (Details) | Nov. 29, 2018Option | Nov. 23, 2018USD ($) | Oct. 05, 2018AUD ($) | Jun. 30, 2019AUD ($)EquityInstruments$ / shares | Jun. 30, 2018AUD ($) | Jun. 30, 2017AUD ($) |
SHARE BASED PAYMENTS | ||||||
Expenses arising from share-based payments | $ 335,102 | $ 129,635 | $ 120,287 | |||
Performance rights | ||||||
SHARE BASED PAYMENTS | ||||||
Number of rights issued | 76,250,000 | 76,250,000 | ||||
Expenses arising from share-based payments | 104,441 | $ 120,287 | ||||
Exercise price (cents) | $ 0 | |||||
Consecutive share price hurdle (in days) | 10 days | |||||
Risk-free interest rate | 2.02% | |||||
Expected life of an option | 2 years 9 months 18 days | |||||
Expected volatility | 80.00% | |||||
Share price at issue (cents) | $ 1.1 | |||||
Class A Performance Rights | ||||||
SHARE BASED PAYMENTS | ||||||
Share price, VWAP hurdle | 2 | |||||
Class A Performance Rights | Dr Paul Kaisian | ||||||
SHARE BASED PAYMENTS | ||||||
Number of rights issued | 7,500,000 | 7,500,000 | 7,500,000 | |||
Expenses arising from share-based payments | $ 11,229 | |||||
Valuation per options (cents) | $ / shares | $ 0.77 | |||||
Total fair value of performance rights | $ 57,750 | |||||
Class A Performance Rights | Dr Lindsay Wakefield | ||||||
SHARE BASED PAYMENTS | ||||||
Number of rights issued | 3,750,000 | 3,750,000 | 3,750,000 | |||
Expenses arising from share-based payments | $ 5,614 | |||||
Valuation per options (cents) | $ / shares | $ 0.77 | |||||
Total fair value of performance rights | $ 28,875 | |||||
Class A Performance Rights | Dr George Muchnicki | ||||||
SHARE BASED PAYMENTS | ||||||
Number of rights issued | 6,250,000 | 6,250,000 | 6,250,000 | |||
Expenses arising from share-based payments | $ 9,358 | |||||
Valuation per options (cents) | $ / shares | $ 0.77 | |||||
Total fair value of performance rights | $ 48,125 | |||||
Class A Performance Rights | Mr Peter Rubinstein | ||||||
SHARE BASED PAYMENTS | ||||||
Number of rights issued | 5,000,000 | 5,000,000 | 5,000,000 | |||
Expenses arising from share-based payments | $ 7,486 | |||||
Valuation per options (cents) | $ / shares | $ 0.77 | |||||
Total fair value of performance rights | $ 38,500 | |||||
Class A Performance Rights | Mr Sam Lee | ||||||
SHARE BASED PAYMENTS | ||||||
Number of rights issued | EquityInstruments | 3,750,000 | |||||
Expenses arising from share-based payments | $ 5,614 | |||||
Valuation per options (cents) | $ / shares | $ 0.77 | |||||
Total fair value of performance rights | $ 28,875 | |||||
Class A Performance Rights | Mr Xue Lee | ||||||
SHARE BASED PAYMENTS | ||||||
Number of rights issued | 3,750,000 | 3,750,000 | ||||
Class B Performance Rights | ||||||
SHARE BASED PAYMENTS | ||||||
Share price, VWAP hurdle | 2 | |||||
Class B Performance Rights | Dr Paul Kaisian | ||||||
SHARE BASED PAYMENTS | ||||||
Number of rights issued | 25,000,000 | 25,000,000 | 25,000,000 | |||
Expenses arising from share-based payments | $ 37,431 | |||||
Valuation per options (cents) | $ / shares | $ 0.77 | |||||
Total fair value of performance rights | $ 192,500 | |||||
Class C Performance Rights | ||||||
SHARE BASED PAYMENTS | ||||||
Share price, VWAP hurdle | 3.3 | |||||
Class C Performance Rights | Dr Paul Kaisian | ||||||
SHARE BASED PAYMENTS | ||||||
Number of rights issued | 25,000,000 | 25,000,000 | 25,000,000 | |||
Expenses arising from share-based payments | $ 27,708 | |||||
Valuation per options (cents) | $ / shares | $ 0.57 | |||||
Total fair value of performance rights | $ 142,500 |
SHARE BASED PAYMENTS - Expenses
SHARE BASED PAYMENTS - Expenses arising from share-based payment transactions (Details) - AUD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Total | $ 335,102 | $ 129,635 | $ 120,287 |
Kentgrove Capital Pty Ltd | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Total | 15,278 | ||
Employee option plan | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Total | 215,383 | $ 129,635 | 120,287 |
Performance rights | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Total | $ 104,441 | $ 120,287 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Operating lease expenditure commitments (Details) - AUD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Operating lease minimum payment | |||
Total minimum operating lease payments | $ 516,628 | $ 41,625 | $ 263,668 |
not later than one year | |||
Operating lease minimum payment | |||
Total minimum operating lease payments | 250,068 | $ 41,625 | 227,992 |
1 to 5 years | |||
Operating lease minimum payment | |||
Total minimum operating lease payments | $ 266,560 | $ 35,676 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Operating lease minimum payments (Details) - AUD ($) | Jul. 03, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 |
Operating lease minimum payment | ||||
Total minimum operating lease payments | $ 516,628 | $ 41,625 | $ 263,668 | |
Other commitments or contingencies | 0 | |||
Crude Pty. Ltd | ||||
Operating lease minimum payment | ||||
Total minimum operating lease payments | 487,837 | |||
New Boston Harris Corners LLC | ||||
Operating lease minimum payment | ||||
Total minimum operating lease payments | $ 28,791 | |||
Entering into significant commitments or contingent liabilities | Crude Pty. Ltd | ||||
Operating lease minimum payment | ||||
Number of years extended in lease agreement | 3 years |
AUDITORS' REMUNERATION (Details
AUDITORS' REMUNERATION (Details) - AUD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Audit and assurance services | |||
Total remuneration in respect of audit services | $ 288,000 | $ 288,200 | $ 437,493 |
Pricewaterhouse Coopers | |||
Audit and assurance services | |||
Audit(1) | $ 288,000 | $ 288,200 | 325,972 |
Audit related | 107,451 | ||
Other audit firms | |||
Audit and assurance services | |||
Audit(1) | $ 4,070 |
RELATED PARTY DISCLOSURES (Deta
RELATED PARTY DISCLOSURES (Details) | Nov. 29, 2018Option | Nov. 23, 2018USD ($) | Jun. 30, 2019AUD ($)EquityInstrumentsshareholdershares | Jun. 30, 2018AUD ($) | Jun. 30, 2017AUD ($) | Jun. 30, 2015AUD ($) | Aug. 02, 2018shares |
Related party disclosures | |||||||
Share-based payments expense | $ 335,102 | $ 129,635 | $ 120,287 | ||||
Framework Agreement with Blockchain Global Limited | |||||||
Related party disclosures | |||||||
Number of Shares Proposed to be Issued Upon Achievement of Milestone | shares | 486,000,000 | ||||||
Debt convertible notes | |||||||
Related party disclosures | |||||||
Proceeds from borrowings | $ 2,150,000 | ||||||
Coupon rate | 10.00% | ||||||
Discount rate on convertible notes which could convert into ordinary shares | 10.00% | ||||||
Number of days for VWAP | 5 days | ||||||
Performance rights | |||||||
Related party disclosures | |||||||
Number of rights issued | 76,250,000 | 76,250,000 | |||||
Share-based payments expense | $ 104,441 | $ 120,287 | |||||
Genetic Technologies Limited | |||||||
Related party disclosures | |||||||
Number of shareholders that control more than 50% of the issued capital | shareholder | 0 | ||||||
Dr Paul Kaisian | Class A Performance Rights | |||||||
Related party disclosures | |||||||
Number of rights issued | 7,500,000 | 7,500,000 | 7,500,000 | ||||
Share-based payments expense | $ 11,229 | ||||||
Dr Paul Kaisian | Class B Performance Rights | |||||||
Related party disclosures | |||||||
Number of rights issued | 25,000,000 | 25,000,000 | 25,000,000 | ||||
Share-based payments expense | $ 37,431 | ||||||
Dr Paul Kaisian | Class C Performance Rights | |||||||
Related party disclosures | |||||||
Number of rights issued | 25,000,000 | 25,000,000 | 25,000,000 | ||||
Share-based payments expense | $ 27,708 | ||||||
Dr Lindsay Wakefield | Debt convertible notes | |||||||
Related party disclosures | |||||||
Proceeds from borrowings | $ 125,000 | ||||||
Share options unexercised at the end of the year | shares | 8,333,333 | ||||||
Dr Lindsay Wakefield | Class A Performance Rights | |||||||
Related party disclosures | |||||||
Number of rights issued | 3,750,000 | 3,750,000 | 3,750,000 | ||||
Share-based payments expense | $ 5,614 | ||||||
Dr George Muchnicki | Debt convertible notes | |||||||
Related party disclosures | |||||||
Shares options indirectly held | shares | 6,666,667 | ||||||
Dr George Muchnicki | Class A Performance Rights | |||||||
Related party disclosures | |||||||
Number of rights issued | 6,250,000 | 6,250,000 | 6,250,000 | ||||
Share-based payments expense | $ 9,358 | ||||||
Mr Peter Rubinstein | Debt convertible notes | |||||||
Related party disclosures | |||||||
Shares options indirectly held | shares | 5,000,000 | ||||||
Mr Peter Rubinstein | Class A Performance Rights | |||||||
Related party disclosures | |||||||
Number of rights issued | 5,000,000 | 5,000,000 | 5,000,000 | ||||
Share-based payments expense | $ 7,486 | ||||||
Mr Sam Lee | Class A Performance Rights | |||||||
Related party disclosures | |||||||
Number of rights issued | EquityInstruments | 3,750,000 | ||||||
Share-based payments expense | $ 5,614 | ||||||
Mr Xue Lee | Class A Performance Rights | |||||||
Related party disclosures | |||||||
Number of rights issued | 3,750,000 | 3,750,000 |
RELATED PARTY DISCLOSURES - Joi
RELATED PARTY DISCLOSURES - Joint Ventures, Key Management Personnel (Details) $ in Billions | Jun. 11, 2019 | Dec. 31, 2018AUD ($) | Jun. 30, 2019AUD ($) | Jun. 30, 2018AUD ($) | Jun. 30, 2017AUD ($) | Aug. 31, 2018USD ($) |
Related party disclosures | ||||||
Impairment of investments | $ 500,000 | |||||
Remuneration of Key Management Personnel | ||||||
Short-term employee benefits | 964,162 | $ 1,215,632 | $ 1,533,457 | |||
Post-employment benefits | 86,130 | 96,315 | 101,320 | |||
Share-based payments | 157,886 | 130,385 | 121,269 | |||
Other long-term benefits | 734 | 2,371 | 61,594 | |||
Termination benefits | 164,760 | |||||
Total remuneration of Key Management Personnel | 1,208,912 | $ 1,609,463 | $ 1,817,640 | |||
Blockshine Health Pty Ltd [Member] | ||||||
Related party disclosures | ||||||
Investments in joint ventures accounted for using equity method | $ 250,000 | $ 250,000 | ||||
Ownership interest (as a percent) | 49.00% | 49.00% | ||||
Genetic Technologies HK Limited and Aocheng Genetic Technologies Co. Ltd - Joint Venture | ||||||
Related party disclosures | ||||||
Minimum amount for gaining access | $ 800 | |||||
Mr. Phillip Hains | ||||||
Related party disclosures | ||||||
Number of years of extensive experience | 30 years | |||||
The CFO solution | ||||||
Related party disclosures | ||||||
Services received, related party transactions | $ 45,459 | |||||
Lodge Corporate | ||||||
Related party disclosures | ||||||
Services received, related party transactions | $ 67,000 |
SUBSIDIARIES (Details)
SUBSIDIARIES (Details) - AUD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
SUBSIDIARIES | ||
Net carrying value | $ 11,018 | $ 11,018 |
GeneType Pty. Ltd | ||
SUBSIDIARIES | ||
Percentage of ownership owned by subsidiary | 100.00% | 100.00% |
Genetic Technologies Corporation Pty. Ltd. | ||
SUBSIDIARIES | ||
Percentage of ownership owned by subsidiary | 100.00% | 100.00% |
Net carrying value | $ 2 | $ 2 |
Gene Ventures Pty. Ltd | ||
SUBSIDIARIES | ||
Percentage of ownership owned by subsidiary | 100.00% | 100.00% |
Net carrying value | $ 10 | $ 10 |
GeneType Corporation | ||
SUBSIDIARIES | ||
Percentage of ownership owned by subsidiary | 100.00% | 100.00% |
Phenogen Sciences Inc. (BREVAGenTM ) | ||
SUBSIDIARIES | ||
Percentage of ownership owned by subsidiary | 100.00% | 100.00% |
Net carrying value | $ 11,006 | $ 11,006 |
Genetic Technologies HK Ltd | ||
SUBSIDIARIES | ||
Percentage of ownership owned by subsidiary | 100.00% |
FINANCIAL RISK MANAGEMENT - Fin
FINANCIAL RISK MANAGEMENT - Financial instruments (Details) | Jun. 30, 2019EUR (€) | Jun. 30, 2019USD ($) | Jun. 30, 2019AUD ($) | Jun. 30, 2018EUR (€) | Jun. 30, 2018USD ($) | Jun. 30, 2018AUD ($) |
FINANCIAL RISK MANAGEMENT | ||||||
Financial assets | $ 3,003,963 | $ 5,791,923 | ||||
Financial liabilities | 1,005,308 | 945,130 | ||||
Trade and other payables | ||||||
FINANCIAL RISK MANAGEMENT | ||||||
Financial liabilities | 1,005,308 | 945,130 | ||||
Cash at bank / on hand | ||||||
FINANCIAL RISK MANAGEMENT | ||||||
Financial assets | 2,131,741 | 5,487,035 | ||||
Trade and other receivables | ||||||
FINANCIAL RISK MANAGEMENT | ||||||
Financial assets | 818,766 | 301,383 | ||||
Performance bond and deposits | ||||||
FINANCIAL RISK MANAGEMENT | ||||||
Financial assets | $ 53,456 | $ 3,505 | ||||
Foreign currency risk | ||||||
FINANCIAL RISK MANAGEMENT | ||||||
Financial assets | € 27,052 | $ 203,723 | € 28,952 | $ 2,157,796 | ||
Financial liabilities | 1,900 | 117,992 | 116,063 | |||
Foreign currency risk | Trade and other payables | ||||||
FINANCIAL RISK MANAGEMENT | ||||||
Financial liabilities | 1,900 | 117,992 | 116,063 | |||
Foreign currency risk | Cash at bank / on hand | ||||||
FINANCIAL RISK MANAGEMENT | ||||||
Financial assets | € 27,052 | 201,737 | € 28,952 | 2,154,291 | ||
Foreign currency risk | Bonds and deposits | ||||||
FINANCIAL RISK MANAGEMENT | ||||||
Financial assets | $ 1,986 | $ 3,505 |
FINANCIAL RISK MANAGEMENT - Cre
FINANCIAL RISK MANAGEMENT - Credit risk (Details) | Jun. 30, 2019USD ($) | Jun. 30, 2019AUD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2018AUD ($) |
Credit risk | ||||
Accrued net trade receivables | $ 16,529 | $ 10,503 | ||
Trade and other receivables | $ 0 | 818,766 | $ 7,114 | 301,383 |
Credit risk | ||||
Credit risk | ||||
Accrued net trade receivables | 16,529 | 10,503 | ||
Trade and other receivables | 818,766 | 301,383 | ||
Current (less than 30 days) | Credit risk | ||||
Credit risk | ||||
Trade and other receivables | 802,237 | 294,454 | ||
31 days to 60 days | Credit risk | ||||
Credit risk | ||||
Trade and other receivables | 11,159 | 3,142 | ||
61 days to 90 days (note) | Credit risk | ||||
Credit risk | ||||
Trade and other receivables | 783 | |||
Greater than 90 days (note) | Credit risk | ||||
Credit risk | ||||
Trade and other receivables | $ 5,370 | $ 3,004 |
FINANCIAL RISK MANAGEMENT - For
FINANCIAL RISK MANAGEMENT - Foreign currency risk (Details) | 12 Months Ended | |||||||
Jun. 30, 2019AUD ($) | Jun. 30, 2018AUD ($) | Jun. 30, 2019EUR (€)$ / $ | Jun. 30, 2019USD ($)$ / $ | Jun. 30, 2019AUD ($)$ / $ | Jun. 30, 2018EUR (€)$ / $ | Jun. 30, 2018USD ($)$ / $ | Jun. 30, 2018AUD ($)$ / $ | |
FINANCIAL RISK MANAGEMENT | ||||||||
Financial assets | $ 3,003,963 | $ 5,791,923 | ||||||
Financial liabilities | 1,005,308 | 945,130 | ||||||
Trade and other payables | ||||||||
FINANCIAL RISK MANAGEMENT | ||||||||
Financial liabilities | 1,005,308 | 945,130 | ||||||
Cash at bank / on hand | ||||||||
FINANCIAL RISK MANAGEMENT | ||||||||
Financial assets | $ 2,131,741 | $ 5,487,035 | ||||||
Foreign currency risk | ||||||||
FINANCIAL RISK MANAGEMENT | ||||||||
Financial assets | € 27,052 | $ 203,723 | € 28,952 | $ 2,157,796 | ||||
Financial liabilities | € 1,900 | $ 117,992 | $ 116,063 | |||||
Percentage of foreign exchange rate decrease | 5.13% | |||||||
Exchange rate | $ / $ | 0.7023 | 0.7023 | 0.7023 | 0.7403 | 0.7403 | 0.7403 | ||
Percentage of reasonably possible increase in risk assumption | 10.00% | 10.00% | 10.00% | |||||
Percentage of reasonably possible decrease in risk assumption | 10.00% | 10.00% | 10.00% | |||||
Increase (decrease) in profit and loss due to reasonably possible increase in designated risk component | $ 11,851 | $ 306,000 | ||||||
Increase (decrease) in profit and loss due to reasonably possible decrease in designated risk component | $ 9,696 | $ 250,000 | ||||||
Foreign currency risk | Trade and other payables | ||||||||
FINANCIAL RISK MANAGEMENT | ||||||||
Financial liabilities | € 1,900 | $ 117,992 | $ 116,063 | |||||
Foreign currency risk | Cash at bank / on hand | ||||||||
FINANCIAL RISK MANAGEMENT | ||||||||
Financial assets | € 27,052 | $ 201,737 | € 28,952 | $ 2,154,291 |
FINANCIAL RISK MANAGEMENT - Int
FINANCIAL RISK MANAGEMENT - Interest rate risk (Details) - AUD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Interest rate risk | ||
Financial assets | $ 3,003,963 | $ 5,791,923 |
Financial liabilities | $ 1,005,308 | 945,130 |
Interest rate risk | ||
Interest rate risk | ||
Percentage of reasonably possible increase in risk assumption | 0.50% | |
Percentage of reasonably possible decrease in risk assumption | 0.50% | |
Increase (decrease) in profit and loss due to reasonably possible increase in designated risk component | $ 8,969 | 12,000 |
Increase (decrease) in profit and loss due to reasonably possible decrease in designated risk component | (8,969) | (12,000) |
Financial assets | 2,131,741 | 2,398,259 |
Interest rate risk | Floating rate | ||
Interest rate risk | ||
Financial assets | 2,131,741 | 2,394,754 |
Interest rate risk | Fixed rate | ||
Interest rate risk | ||
Financial assets | 53,456 | 3,505 |
Cash at bank / on hand | ||
Interest rate risk | ||
Financial assets | 2,131,741 | 5,487,035 |
Cash at bank / on hand | Interest rate risk | ||
Interest rate risk | ||
Financial assets | $ 2,131,741 | $ 2,394,754 |
Weighted ave. effective rate (as a percent) | 1.74% | 1.74% |
Cash at bank / on hand | Interest rate risk | Floating rate | ||
Interest rate risk | ||
Financial assets | $ 2,131,741 | $ 2,394,754 |
Performance bond and deposits | ||
Interest rate risk | ||
Financial assets | 53,456 | 3,505 |
Performance bond and deposits | Interest rate risk | ||
Interest rate risk | ||
Financial assets | 53,456 | 3,505 |
Performance bond and deposits | Interest rate risk | Fixed rate | ||
Interest rate risk | ||
Financial assets | $ 53,456 | $ 3,505 |
FINANCIAL RISK MANAGEMENT - Liq
FINANCIAL RISK MANAGEMENT - Liquidity risk (Details) - AUD ($) | Jun. 30, 2019 | Jun. 30, 2018 |
FINANCIAL RISK MANAGEMENT | ||
Financial assets | $ 3,003,963 | $ 5,791,923 |
Financial liabilities | 1,005,308 | 945,130 |
Net maturity | (1,998,655) | 4,846,793 |
Liquidity risk | Credit card facility | ||
FINANCIAL RISK MANAGEMENT | ||
Facility limit | 95,714 | |
Amount used | 6,516 | |
Amount available | 89,198 | |
Less than 6 months | ||
FINANCIAL RISK MANAGEMENT | ||
Financial assets | 3,003,963 | 5,791,923 |
Financial liabilities | 1,005,308 | 945,130 |
Net maturity | (1,998,655) | 4,846,793 |
Trade and other payables | ||
FINANCIAL RISK MANAGEMENT | ||
Financial liabilities | 1,005,308 | 945,130 |
Trade and other payables | Less than 6 months | ||
FINANCIAL RISK MANAGEMENT | ||
Financial liabilities | 1,005,308 | 945,130 |
Cash at bank / on hand | ||
FINANCIAL RISK MANAGEMENT | ||
Financial assets | 2,131,741 | 5,487,035 |
Cash at bank / on hand | Less than 6 months | ||
FINANCIAL RISK MANAGEMENT | ||
Financial assets | 2,131,741 | 5,487,035 |
Trade and other receivables | ||
FINANCIAL RISK MANAGEMENT | ||
Financial assets | 818,766 | 301,383 |
Trade and other receivables | Less than 6 months | ||
FINANCIAL RISK MANAGEMENT | ||
Financial assets | 818,766 | 301,383 |
Performance bond and deposits | ||
FINANCIAL RISK MANAGEMENT | ||
Financial assets | 53,456 | 3,505 |
Performance bond and deposits | Less than 6 months | ||
FINANCIAL RISK MANAGEMENT | ||
Financial assets | $ 53,456 | $ 3,505 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | Sep. 23, 2019 | Aug. 02, 2019shares | Aug. 01, 2019shares | Dec. 31, 2018AUD ($) | Jun. 30, 2019AUD ($) | Aug. 31, 2018AUD ($) |
SUBSEQUENT EVENTS | ||||||
Impairment of investments | $ 500,000 | |||||
Swisstec [Member] | ||||||
SUBSEQUENT EVENTS | ||||||
Investment in joint venture | $ 250,000 | |||||
Blockshine Health Pty Ltd [Member] | ||||||
SUBSEQUENT EVENTS | ||||||
Investment in joint venture | $ 250,000 | $ 250,000 | ||||
Ownership interest (as a percent) | 49.00% | 49.00% | ||||
Major ordinary share transactions | ||||||
SUBSEQUENT EVENTS | ||||||
Number of shares representing one share of ADS | shares | 600 | 150 | ||||
Reverse split ratio | 4 | |||||
Collaboration Agreement with Translational Genomics Research Institute (TGen) of Phoenix, Arizona USA [Member] | ||||||
SUBSEQUENT EVENTS | ||||||
Period for collaboration agreement | 3 years |