Document and Entity Information
Document and Entity Information | 12 Months Ended | |||
Dec. 31, 2018 | Feb. 13, 2019shares | Jun. 30, 2018AUD ($) | Jun. 30, 2018USD ($) | |
Document And Entity Information [Abstract] | ||||
Document Type | 10-K | |||
Amendment Flag | false | |||
Document Period End Date | Dec. 31, 2018 | |||
Document Fiscal Year Focus | 2,018 | |||
Document Fiscal Period Focus | FY | |||
Trading Symbol | UBI | |||
Entity Registrant Name | UNIVERSAL BIOSENSORS INC | |||
Entity Central Index Key | 1,279,695 | |||
Current Fiscal Year End Date | --12-31 | |||
Entity Well-known Seasoned Issuer | No | |||
Entity Current Reporting Status | Yes | |||
Entity Voluntary Filers | No | |||
Entity Filer Category | Non-accelerated Filer | |||
Entity Shell Company | false | |||
Entity Small Business | true | |||
Entity Emerging Growth Company | true | |||
Entity Ex Transition Period | false | |||
Entity Common Stock, Shares Outstanding | 176,939,470 | |||
Entity Public Float | $ 28,184,504 | $ 20,831,167 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets (Unaudited) | Dec. 31, 2018AUD ($) | Dec. 31, 2017AUD ($) |
Current assets: | ||
Cash and cash equivalents | $ 11,797,789 | $ 26,259,918 |
Inventories, net | 744,466 | 662,132 |
Accounts receivable | 50,209,561 | 4,397,268 |
Prepayments | 158,492 | 887,303 |
Restricted cash | 15,589 | 15,309 |
Other current assets | 1,105,291 | 860,254 |
Total current assets | 64,031,188 | 33,082,184 |
Non-current assets: | ||
Property, plant and equipment | 29,101,932 | 37,224,442 |
Less accumulated depreciation | (23,475,544) | (27,264,680) |
Property, plant and equipment - net | 5,626,388 | 9,959,762 |
Restricted cash | 320,000 | 3,220,000 |
Total non-current assets | 5,946,388 | 13,179,762 |
Total assets | 69,977,576 | 46,261,946 |
Current liabilities: | ||
Accounts payable | 695,405 | 329,586 |
Income taxes payable | 4,352,564 | 0 |
Accrued expenses | 1,696,644 | 1,472,692 |
Other liabilities | 2,902,525 | 2,626,413 |
Deferred revenue | 2,356,583 | 2,356,583 |
Employee entitlements liabilities | 1,196,899 | 1,550,182 |
Total current liabilities | 13,200,620 | 8,335,456 |
Non-current liabilities: | ||
Asset retirement obligations | 2,600,000 | 2,600,000 |
Employee entitlements liabilities | 39,468 | 64,358 |
Long term secured loan | 0 | 19,029,076 |
Deferred revenue | 3,463,737 | 3,463,737 |
Total non-current liabilities | 6,103,205 | 25,157,171 |
Total liabilities | 19,303,825 | 33,492,627 |
Commitments and contingencies | 0 | 0 |
Stockholders' equity: | ||
Preferred stock, US$0.01 par value. Authorized 1,000,000 shares; issued and outstanding nil in 2018 (2017: nil) | ||
Common stock, US$0.0001 par value. Authorized 300,000,000 shares; issued and outstanding 177,243,520 shares in 2018 (2017: 176,498,550) | 17,724 | 17,650 |
Additional paid-in capital | 93,815,185 | 93,450,721 |
Accumulated deficit | (80,397,343) | (79,632,626) |
Current year income/(loss) | 37,564,356 | (764,717) |
Accumulated other comprehensive income | (326,171) | (301,709) |
Total stockholders' equity | 50,673,751 | 12,769,319 |
Total liabilities and stockholders' equity | $ 69,977,576 | $ 46,261,946 |
Consolidated Condensed Balanc_2
Consolidated Condensed Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 177,243,520 | 176,498,550 |
Common stock, shares outstanding | 177,243,520 | 176,498,550 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Comprehensive Income/(Loss) (Unaudited) - AUD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue | ||
Total revenue | $ 69,456,914 | $ 25,191,280 |
Operating costs & expenses | ||
Total cost of goods sold & services | 2,511,479 | 3,951,208 |
Contribution from products & services | 66,945,435 | 21,240,072 |
Other operating costs & expenses | ||
Product support | 227,517 | 604,984 |
Depreciation | 1,721,882 | 2,100,763 |
Research and development | 11,578,246 | 10,828,879 |
General and administrative | 6,995,089 | 6,689,431 |
Total operating costs & expenses | 20,522,734 | 20,224,057 |
Profit/(loss) from operations | 46,422,701 | 1,016,015 |
Other income/(expense) | ||
Interest income | 491,038 | 172,376 |
Interest expense | 0 | (9,610) |
Financing costs | (2,991,117) | (2,793,734) |
Research and development tax incentive income | 0 | 122,341 |
Exchange gain | 577,505 | 731,289 |
Impairment of fixed assets | (2,574,709) | 0 |
Loss on disposal of fixed assets | (8,498) | (3,394) |
Total other income/(expense) | (4,505,781) | (1,780,732) |
Net income/(loss) before tax | 41,916,920 | (764,717) |
Income tax expense | (4,352,564) | 0 |
Net income/(loss) | $ 37,564,356 | $ (764,717) |
Earnings per share | ||
Basic net income/(loss) per share | $ 0.21 | $ 0 |
Average weighted number of shares - basic | 176,732,183 | 176,417,431 |
Diluted net income/(loss) per share | $ 0.21 | $ 0 |
Average weighted number of shares - diluted | 177,152,938 | 176,417,431 |
Other comprehensive gain/(loss), net of tax: | ||
Foreign currency translation reserve | $ (24,462) | $ (3,506) |
Reclassification for (gains)/losses realized in net income | 0 | 0 |
Other comprehensive gain/(loss) | (24,462) | (3,506) |
Comprehensive gain/(loss) | 37,539,894 | (768,223) |
Product [Member] | ||
Revenue | ||
Total revenue | 1,672,321 | 4,066,929 |
Operating costs & expenses | ||
Total cost of goods sold & services | 1,607,340 | 3,014,995 |
Service [Member] | ||
Revenue | ||
Total revenue | 67,784,593 | 21,124,351 |
Operating costs & expenses | ||
Total cost of goods sold & services | $ 904,139 | $ 936,213 |
Consolidated Condensed Statem_2
Consolidated Condensed Statements of Changes in Stockholders' Equity and Comprehensive Income/(Loss) (Unaudited) | AUD ($) | Ordinary Shares [Member]AUD ($)shares | Ordinary Shares [Member]USD ($)shares | Additional Paid-in Capital [Member]AUD ($) | Accumulated Deficit [Member]AUD ($) | Accumulated Other Comprehensive Loss [Member]AUD ($) |
Beginning Balance at Dec. 31, 2016 | $ | $ 13,254,275 | $ 17,639 | $ 93,167,465 | $ (79,632,626) | $ (298,203) | |
Beginning Balance, Shares at Dec. 31, 2016 | shares | 176,386,884 | 176,386,884 | ||||
Net income/(loss) | (764,717) | $ 0 | $ 0 | 0 | (764,717) | 0 |
Other comprehensive loss | (3,506) | 0 | $ 0 | 0 | 0 | (3,506) |
Exercise of stock options issued to employees | $ | 766 | $ 11 | 755 | 0 | 0 | |
Exercise of stock options issued to employees, Shares | shares | 111,666 | 111,666 | ||||
Stock option expense | 282,501 | $ 0 | $ 0 | 282,501 | 0 | 0 |
Ending Balance at Dec. 31, 2017 | $ | 12,769,319 | $ 17,650 | 93,450,721 | (80,397,343) | (301,709) | |
Ending Balance, Shares at Dec. 31, 2017 | shares | 176,498,550 | 176,498,550 | ||||
Net income/(loss) | 37,564,356 | $ 0 | $ 0 | 0 | 37,564,356 | 0 |
Other comprehensive loss | (24,462) | 0 | $ 0 | 0 | 0 | (24,462) |
Exercise of stock options issued to employees | $ | 0 | $ 55 | (55) | 0 | 0 | |
Exercise of stock options issued to employees, Shares | shares | 553,334 | 553,334 | ||||
Shares issued to employees | $ | 45,993 | $ 19 | 45,974 | 0 | 0 | |
Shares issued to employees, Shares | shares | 191,636 | 191,636 | ||||
Stock option expense | 318,545 | $ 0 | $ 0 | 318,545 | 0 | 0 |
Ending Balance at Dec. 31, 2018 | $ | $ 50,673,751 | $ 17,724 | $ 93,815,185 | $ (42,832,987) | $ (326,171) | |
Ending Balance, Shares at Dec. 31, 2018 | shares | 177,243,520 | 177,243,520 |
Consolidated Condensed Statem_3
Consolidated Condensed Statements of Cash Flows (Unaudited) - AUD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities provided by: | ||
Net income/(loss) | $ 37,564,356 | $ (764,717) |
Adjustments to reconcile net income/(loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 2,113,454 | 2,589,493 |
Share based payments expense | 318,545 | 282,501 |
Impairment of fixed assets | 2,574,709 | 0 |
Loss on disposal of fixed assets | 8,498 | 3,394 |
Unrealized foreign exchange gains | (472,934) | (31,112) |
Financing costs - amortization of warrants | 213,359 | 212,168 |
Change in assets and liabilities: | ||
Inventory | (82,334) | 177,118 |
Accounts receivable | (45,812,293) | 450,741 |
Prepayment and other assets | 483,774 | 7,405,162 |
Income tax payable | 4,352,564 | 0 |
Deferred revenue | 0 | (546,655) |
Employee entitlements | (356,643) | (35,416) |
Accounts payable and accrued expenses | 859,382 | (1,037,653) |
Net cash provided by operating activities | 1,764,437 | 8,705,024 |
Cash flows from investing activities: | ||
Proceeds from sale of property, plant and equipment | 2,582 | 0 |
Purchases of property, plant and equipment | (448,867) | (1,292,369) |
Proceeds from government grants in relation to property, plant & equipment | 89,500 | 271,318 |
Net cash used in investing activities | (356,785) | (1,021,051) |
Cash flows from financing activities: | ||
Repayment of borrowings | (20,689,655) | (369,630) |
Borrowing costs | (256,410) | 0 |
Proceeds from stock options exercised | 0 | 766 |
Net cash used in financing activities | (20,946,065) | (368,864) |
Net increase/(decrease) in cash, cash equivalents and restricted cash | (19,538,413) | 7,315,109 |
Cash, cash equivalents and restricted cash at beginning of period | 29,495,227 | 23,622,322 |
Effect of exchange rate fluctuations on the balances of cash held in foreign currencies | 2,176,564 | (1,442,204) |
Cash, cash equivalents and restricted cash at end of period | $ 12,133,378 | $ 29,495,227 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | (1) Basis of Presentation These consolidated financial statements are presented in accordance with “U.S. GAAP”. All amounts are expressed in Australian dollars (“AUD” or “A$”) unless otherwise stated. Unless otherwise noted, references to “Universal Biosensors”, the “Company,” “Group,” “we,” “our” or “us” means Universal Biosensors, Inc. (“UBI”) a Delaware corporation and, when applicable, its wholly owned Australian operating subsidiary, Universal Biosensors Pty Ltd (“UBS”) and its wholly owned Canadian operating subsidiary, Hemostasis Reference Laboratory Inc. (“HRL”). The Company’s consolidated financial statements have been prepared assuming the Company will continue as a going concern. We rely largely on our existing cash and cash equivalents balance and operating cash flow to provide for the working capital needs of our operations. We believe we have sufficient cash and cash equivalents to fund our operations for at least the next twelve months. However, in the event, our financing needs for the foreseeable future are not able to be met by our existing cash and cash equivalents balance and operating cash flow, we would seek to raise funds through public or private equity offerings, debt financings, and through other means to meet the financing requirements. There is no assurance that funding would be available at acceptable terms, if at all. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (2) Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the financial statements of the Company and its wholly owned subsidiaries, UBS and HRL. All intercompany balances and transactions have been eliminated on consolidation. Use of Estimates The preparation of the consolidated financial statements requires management of the Company to make a number of estimates and assumptions relating to the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Significant items subject to such estimates and assumptions include the recognition of revenue, carrying amount of property, plant and equipment, income tax expense, deferred income taxes, asset retirement obligations, liabilities related to employee benefits, warrants and research and development tax incentive income. Actual results could differ from those estimates. Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments purchased with an initial maturity of three months or less to be cash equivalents. For cash and cash equivalents, the carrying amount approximates fair value due to the short maturity of those instruments. The Company maintains cash and restricted cash, which includes tenant and credit card security deposits. As at December 31, 2018 and 2017, the Company has not realized any losses in such cash accounts and believes it is not exposed to any significant risk of loss. Short-Term Investments (Held-to-maturity) Short-term investments constitute all highly liquid investments with term to maturity from three months to twelve months. The carrying amount of short-term investments is equivalent to their fair value. Concentration of Credit Risk and Other Risks and Uncertainties Cash and cash equivalents and accounts receivable consist of financial instruments that potentially subject the Company to concentration of credit risk to the extent of the amount recorded on the consolidated balance sheets. The Company’s cash and cash equivalents are primarily invested with one of Australia’s largest banks. The Company is exposed to credit risk in the event of default by the banks holding the cash or cash equivalents to the extent of the amount recorded on the consolidated balance sheets. The Company has not experienced any losses on its deposits of cash and cash equivalents. The Company has not identified any collectability issues with respect to receivables. Derivative Instruments and Hedging Activities Derivative financial instruments The Company may use derivative financial instruments to hedge its exposure to foreign exchange arising from operating, investing and financing activities. The Company does not hold or issue derivative financial instruments for trading purposes. However, derivatives that do not qualify for hedge accounting are accounted for as trading instruments. Derivative financial instruments are recognized initially at fair value. Subsequent to initial recognition, derivative financial instruments are stated at fair value. The gain or loss on remeasurement to fair value is recognized immediately in the income statement. However, where derivatives qualify for hedge accounting, recognition of any resultant gain or loss depends on the nature of the item being hedged. Cash flow hedges Exposure to foreign exchange risks arises in the normal course of the Company’s business and it is the Company’s policy to use forward exchange contracts to hedge anticipated sales and purchases in foreign currencies. The amount of forward cover taken is in accordance with approved policy and internal forecasts. Where a derivative financial instrument is designated as a hedge of the variability in cash flows of a recognized asset or liability, or a highly probable forecast transaction, the effective part of any unrealized gain or loss on the derivative financial instrument is recognized directly in equity. When the forecast transaction subsequently results in the recognition of a non-financial non-financial non-financial For cash flow hedges, other than those covered by the preceding statement, the associated cumulative gain or loss is removed from equity and recognized in the consolidated statements of comprehensive income in the same period or periods during which the hedged forecast transaction affects the consolidated statements of comprehensive income and on the same line item as that hedged forecast transaction. The ineffective part of any gain or loss is recognized immediately in the consolidated statements of comprehensive income. When a hedging instrument expires or is sold, terminated or exercised, or the Company revokes designation of the hedge relationship but the hedged forecast transaction is still probable to occur, the cumulative gain or loss at that point remains in equity and is recognized in accordance with the above policy when the transaction occurs. If the hedged transaction is no longer expected to take place, then the cumulative unrealized gain or loss recognized in equity is recognized immediately in the consolidated statements of comprehensive income. Derivative Instruments and Hedging Activities In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as consider our own and counterparty credit risk. For years ended December 31, 2018 and 2017, we did not have any assets or liabilities that utilize Level 3 inputs. The valuation of our foreign exchange derivatives are based on the market approach using observable market inputs, such as forward rates and incorporate non-performance Fair Value of Financial Instruments The carrying value of all current assets and current liabilities approximates fair value because of their short-term nature. The estimated fair value of all other amounts has been determined, depending on the nature and complexity of the assets or the liability, by using one or all of the following approaches: • Market approach – based on market prices and other information from market transactions involving identical or comparable assets or liabilities. • Cost approach – based on the cost to acquire or construct comparable assets less an allowance for functional and/or economic obsolescence. • Income approach – based on the present value of a future stream of net cash flows. These fair value methodologies depend on the following types of inputs: • Quoted prices for identical assets or liabilities in active markets (Level 1 inputs). • Quoted prices for similar assets or liabilities in active markets or quoted prices for identical or similar assets or liabilities in markets that are not active or are directly or indirectly observable (Level 2 inputs). • Unobservable inputs that reflect estimates and assumptions (Level 3 inputs). Inventory Inventories are stated at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and estimated costs necessary to dispose. Inventories are principally determined under the average cost method which approximates cost. Cost comprises direct materials, direct labour and an appropriate portion of variable and fixed overhead expenditure, the latter being allocated on the basis of normal operating capacity. Cost also includes the transfer from equity of any gains/losses on qualifying cash flow hedges relating to purchases of raw material. Costs of purchased inventory are determined after deducting rebates and discounts. Years Ended December 31, 2018 2017 A$ A$ Raw materials 302,056 380,540 Work in progress 442,410 253,483 Finished goods 0 28,109 744,466 662,132 Receivables Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the best estimate of the amount of probable credit losses in the existing accounts receivable. The allowance is determined based on a review of individual accounts for collectability, generally focusing on those accounts that are past due. The expense to adjust the allowance for doubtful accounts, if any, is recorded within general and administrative expenses in the consolidated statements of comprehensive income. Account balances are charged against the allowance when it is probable the receivable will not be recovered. Years Ended December 31, 2018 2017 A$ A$ Accounts receivable 50,209,561 4,397,268 Allowance for doubtful debts 0 0 50,209,561 4,397,268 Property, Plant, and Equipment - net Property, plant, and equipment are recorded at acquisition cost, less accumulated depreciation. Depreciation on plant and equipment is calculated using the straight-line method over the estimated useful lives of the assets. The estimated useful life of machinery and equipment is 3 to 10 years. Leasehold improvements are amortized on the straight-line method over the shorter of the remaining lease term or estimated useful life of the asset. Maintenance and repairs are charged to operations as incurred, include normal services, and do not include items of a capital nature. The Company receives Commonwealth of Australia grant monies under grant agreements to support its development activities (refer section on “Government grants”), including in connection with the purchase of plant and equipment. Plant and equipment is presented net of the government grant. The grant monies are recognized against the acquisition costs of the related plant and equipment as and when the related assets are purchased. Impairment of Long-Lived Assets The Company reviews its capital assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. In performing the review, the Company estimates undiscounted cash flows from products under development that are covered by these patents and licenses. An impairment loss would be recognized when estimated undiscounted future cash flows expected to result from the use of the asset and its eventual disposition is less than the carrying amount of the asset. If the evaluation indicates that the carrying value of an asset is not recoverable from its undiscounted cash flows, an impairment loss is measured by comparing the carrying value of the asset to its fair value, based on discounted cash flows. Impairment of long-lived assets as at December 31, 2018 and 2017 were A$2,574,709 and nil, respectively. Other Liabilities Other liabilities represent marketing support payment due to LifeScan. Years Ended December 31, 2018 2017 A$ A$ Current liabilites Marketing support payment 2,902,525 2,626,413 2,902,525 2,626,413 During 2009, LifeScan chose not to proceed with the registration of the then current product but to proceed with an enhanced product, called OneTouch Verio ® Research and Development Research and development expenses consist of costs incurred to further the Group’s research and product development activities and include salaries and related employee benefits, costs associated with clinical trial and preclinical development, regulatory activities, research-related overhead expenses, costs associated with the manufacture of clinical trial material, costs associated with developing a commercial manufacturing process, costs for consultants and related contract research, facility costs and depreciation. Research and development costs are expensed as incurred. Research and development expenses for the respective periods are as follows: Years Ended December 31, 2018 2017 A$ A$ Research and development expenses 11,578,246 10,828,879 Income Taxes The Company applies ASC 740 - Income Taxes which establishes financial accounting and reporting standards for the effects of income taxes that result from a company’s activities during the current and preceding years. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Where it is more likely than not that some portion or all of the deferred tax assets will not be realized, the deferred tax assets are reduced by a valuation allowance. The valuation allowance is sufficient to reduce the deferred tax assets to the amount that is more likely than not to be realized. A reconciliation of the valuation and qualifying accounts is attached as Schedule ii. Pursuant to the new U.S. tax reform rules, UBI is subject to regulations addressing Global Intangible Low-Taxed Income (“GILTI”) effective in 2018. The GILTI rules are new provisions of the U.S. tax code enacted as a part of tax reform legislation in the U.S. passed in December 2017. Mechanically, the GILTI rule functions as a global minimum tax for all U.S. shareholders of controlled foreign corporations (“CFCs”) and applies broadly to certain income generated by a CFC. The Company can make an accounting policy election to either: (1) treat GILTI as a period cost if and when incurred; or (2) recognize deferred taxes for basis differences that are expected to reverse as GILTI in future years. The Company has elected to treat GILTI as a period cost. We are subject to income taxes in the United States, Canada and Australia. Tax returns up to and including the 2017 financial year has been filed in all these jurisdictions. Asset Retirement Obligations Asset retirement obligations (“ARO”) are legal obligations associated with the retirement and removal of long-lived assets. ASC 410 – Asset Retirement and Environmental Obligations requires entities to record the fair value of a liability for an asset retirement obligation when it is incurred. When the liability is initially recorded, the Company capitalizes the cost by increasing the carrying amounts of the related property, plant and equipment. Over time, the liability increases for the change in its present value, while the capitalized cost depreciates over the useful life of the asset. The Company derecognizes ARO liabilities when the related obligations are settled. The ARO is in relation to our premises where in accordance with the terms of the lease, the lessee has to restore part of the building upon vacating the premises. ARO for the years ended December 31, 2018, and 2017 was A$2,600,000. Australian Goods and Services Tax (GST) and Canadian Harmonized Sales Tax (HST) Revenues, expenses and assets are recognized net of the amount of associated GST and HST, unless the GST and HST incurred is not recoverable from the taxation authority. In this case it is recognized as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables are stated inclusive of the amount of GST and HST receivable or payable. The net amount of GST and HST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the consolidated balance sheets. Revenue Recognition We recognize revenue from all sources based on the provisions of the U.S. SEC’s Staff Accounting Bulletin No. 104 and ASC 605 Revenue Recognition. The Company’s revenue represents revenue from sales of products, provision of services and collaborative research and development agreements. We recognize revenue from sales of products at the time title of goods passes to the buyer and the buyer assumes the risks and rewards of ownership, assuming all other revenue recognition criteria have been met. Generally, this is at the time products are shipped to the customer. Revenue from services is recognized when a persuasive evidence of an arrangement exists, services have been rendered, the price is fixed or determinable, and collectability is reasonably assured. Revenue recognition principles are assessed for each new contractual arrangement and the appropriate accounting is determined for each service. On September 21, 2018 LifeScan exercised its right to convert its obligation to pay quarterly service fees to us. The lump sum service fees of US$31,503,880 (equivalent to A$44,635,704) was paid to Universal Biosensors on February 18, 2019. The lump sum service fee has been calculated by multiplying the total quarterly service fees received for the 2018 financial year by two and converting the same into AUD using the period end exchange rate. We assessed if any amount of the lump sum service fees were attributable to the remaining obligation under the Master Services and Supply Agreement that states that LifeScan could require us to provide manufacturing services at our Rowville facility to recommence production of glucose strips. We conclude that this obligation has no fair value attributable to it due to (i) high set-up Where our agreements contain multiple elements, or deliverables, such as the manufacture and sale of products, provision of services or research and development activities, they are assessed to determine whether separate delivery of the individual elements of such arrangements comprises more than one unit of accounting. Where an arrangement can be divided into separate units of accounting (each unit constituting a separate earnings process), the arrangement consideration is allocated amongst those varying units based on the relative selling price of the separate units of accounting and the applicable revenue recognition criteria applied to the separate units. Selling prices are determined using fair value as determined by either vendor specific objective evidence or third party evidence of the selling price, when available, or the Company’s best estimate of selling price when fair value is not available for a given unit of accounting. Under ASC 605-25, non-refundable, We typically generate milestone payments from our customers pursuant to the various agreements we have with them. Non-refundable non-refundable non-refundable Management has concluded that the core operations of the Company are expected to be the research and development activities, commercial manufacture of approved medical or testing devices and the provision of services. The Company’s ultimate goal is to utilize the underlying technology and skill base for the development of marketable products that the Company will manufacture. The Company considers revenue from the sales of products, revenue from services and the income received from milestone payments indicative of its core operating activities or revenue producing goals of the Company, and as such have accounted for this income as “revenues”. Master Services and Supply Agreement In October 2007, the Company and LifeScan entered into a Master Services and Supply Agreement, under which the Company would provide certain services to LifeScan in the field of blood glucose monitoring and act as a non-exclusive All consideration within the Master Services and Supply Agreement is contingent. The Company concluded the undelivered items were not priced at a significant incremental discount to the delivered items and revenue for each deliverable will be recognized as each contingency is met and the consideration becomes fixed and determinable. The milestone payment was considered to be a substantive payment and the entire amount has been recognized as revenue when the regulatory approval was received. Revenues for contract manufacturing and ongoing efforts to enhance the product are recognized as revenue from products or revenue from services, respectively, when the four basic criteria for revenue recognition are met. Collaboration Agreement On September 9, 2011 the Company entered into a Collaboration Agreement with Siemens to develop coagulation related products for hospital point-of-care up-front, non-refundable up-front Interest income Interest income is recognized as it accrues, taking into account the effective yield on the cash and cash equivalents. Research and development tax incentive income Research and development tax incentive income is recognized when there is reasonable assurance that the income will be received, the relevant expenditure has been incurred, and the consideration can be reliably measured. The research and development tax incentive is one of the key elements of the Australian Government’s support for Australia’s innovation system and is supported by legislative law primarily in the form of the Australian Income Tax Assessment Act 1997 as long as eligibility criteria are met. Generally speaking, entities which are an R&D entity involved in eligible R&D activities may claim research and development tax incentive income as follows: 1. as a 43.5% refundable tax offset if aggregate turnover (which generally means an entity’s total income that it derives in the ordinary course of carrying on a business, subject to certain exclusions) of the entity is less than A$20 million, or 2. as a 38.5% non-refundable In accordance with SEC Regulation S-X 5-03, non-operating Management has assessed the Company’s research and development activities and expenditures to determine which activities and expenditures are likely to be eligible under the tax incentive regime described above. At each period end management estimates the refundable tax offset available to the Company based on available information at the time. This estimate is also reviewed by external tax advisors on an annual basis. For the year ended December 31, 2018 and 2017, the aggregate turnover of the Company had exceeded A$20 million and accordingly it was not eligible for a refundable tax offset. The Company was however eligible for the non-refundable Foreign Currency Functional and reporting currency Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (“the functional currency”). The functional currency of UBI and UBS is AUD or A$ for all years presented. The functional currency of HRL is Canadian dollars (“CAD$”). The consolidated financial statements are presented using a reporting currency of Australian dollars. Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end The Company has recorded foreign currency transaction gains of A$577,505 and A$731,289 in each of the years ended December 31, 2018 and 2017, respectively. The results and financial position of all the Group entities that have a functional currency different from the reporting currency are translated into the reporting currency as follows: • assets and liabilities for each balance sheet item reported are translated at the closing rate at the date of that balance sheet; • income and expenses for each income statement item reported are translated at average exchange rates (unless this is not a reasonable approximation of the effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions); and • all resulting exchange differences are recognized as a separate component of equity. On consolidation, exchange differences arising from the translation of any net investment in foreign entities are taken to the Accumulated Other Comprehensive Income. Commitments and Contingencies Liabilities for loss contingencies, arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. These were nil as at December 31, 2018 and 2017. Purchase commitments contracted for as at December 31, 2018 and 2017 were A$941,864 and A$2,359,443, respectively. Patent and License Costs Legal and maintenance fees incurred for patent application costs have been charged to expense and reported in general and administrative expense. Clinical Trial Expenses Clinical trial costs are a component of research and development expenses. These expenses include fees paid to participating hospitals and other service providers, which conduct certain testing activities on behalf of the Company. Depending on the timing of payments to the service providers and the level of service provided, the Company records prepaid or accrued expenses relating to these costs. These prepaid or accrued expenses are based on estimates of the work performed under service agreements. Leased Assets All of the Company’s leases for the years ended December 31, 2018 and 2017 are considered operating leases. The costs of operating leases are charged to the consolidated statements of comprehensive income on a straight-line basis over the lease term. Stock-based Compensation We measure stock-based compensation at grant date, based on the estimated fair value of the award, and recognize the cost as an expense on a straight-line basis over the vesting period of the award. We estimate the fair value of stock options using the Trinomial Lattice model. We also grant our employees Restricted Stock Units (“RSUs”) and zero exercise price employee options (“ZEPOs”). RSUs are stock awards granted to employees that entitle the holder to shares of common stock as the award vests. ZEPOs are stock options granted to employees that entitle the holder to shares of common stock as the award vests. The value of RSUs are determined and fixed on the grant date based on the Company’s stock price. The exercise price of ZEPOs is nil. See note 5 for further details. We record deferred tax assets for awards that will result in deductions on our income tax returns, based on the amount of compensation cost recognized and our statutory tax rate in the jurisdiction in which we will receive a deduction. Differences between the deferred tax assets recognized for financial reporting purposes and the actual tax deduction reported in our income tax return are recorded in expense or in capital in excess of par value if the tax deduction exceeds the deferred tax assets or to the extent that previously recognized credits to paid-in-capital Employee Benefit Costs The Company contributes 9.50% of each employee’s salary to standard defined contribution superannuation funds on behalf of all UBS employees. Superannuation is a compulsory savings program whereby employers are required to pay a portion of an employee’s remuneration to an approved superannuation fund that the employee is typically not able to access until they have reached the statutory retirement age. Whilst the Company has a third party default superannuation fund, it permits UBS employees to choose an approved and registered superannuation fund into which the contributions are paid. Contributions are charged to the consolidated statements of comprehensive income as they become payable. Registered Retirement Savings Plan and Deferred Sharing Profit Plan The Company provides eligible HRL employees a retirement plan. The retirement plan includes a Registered Retirement Savings Plan (“RRSP”) and Deferred Profit Sharing Plan (“DPSP”). The RRSP is voluntary and the employee contributions are matched by the Company up to a maximum of 5% based on their continuous years of service and placed into the DPSP. The Company contributes 1% to 2% of the employee’s base earnings towards the DPSP. The DPSP contributions are vested immediately. Benefit Plan The Company provides eligible HRL employees. In general, the Benefit Plan includes extended health care, dental care, basic life insurance, basic accidental death and dismemberment, and disability insurance. Net Income/(Loss) per Share and Anti-dilutive Securities Basic and diluted net income/(loss) per share is presented in conformity with ASC 260 – Earnings per Share. Basic and diluted net income/(loss) per share has been computed using the weighted-average number of common shares outstanding during the period. Diluted net income/(loss) per share is calculated by adjusting the basic net income/(loss) per share by assuming all dilutive potential ordinary shares are converted. Total Comprehensive Income/(Loss) The Company follows ASC 220 – Comprehensive Income. Comprehensive income/(loss) is defined as the total change in shareholders’ equity during the period other than from transactions with shareholders, and for the Company, includes net income/(loss). The tax effect allocated to each component of other comprehensive income/(loss) is as follows: Before-Tax Tax (Expense)/ Benefit Net-of-Tax A$ A$ A$ 2018 Foreign currency translation reserve (24,462 ) 0 (24,462 ) Reclassification for gains realised in net income 0 0 0 Other comprehensive loss (24,462 ) 0 (24,462 ) 2017 Foreign currency translation reserve (3,506 ) 0 (3,506 ) Reclassification for gains realised in net income 0 0 0 Other comprehensive loss (3,506 ) 0 (3,506 ) Business combinations Business combinations are accounted for using the acquisition method of accounting. Acquisition cost is measured as the aggregate of the fair value at the date of acquisition of the assets given, equity instruments issued or liabilities incurred or assumed. Acquisition related costs are expensed as incurred (except for those costs arising on the issue of equity instruments which are recognised directly in equity). Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured at fair value on the acquisition date. Goodwill is measured as the excess of the acquisition cost, the amount of any non-controlling Recent Accounting Pronouncements (a) Recent issued accounting standards not yet adopted ASU No.2016-02, On February 25, 2016, the FASB issued ASU 2016-02, 2016-02 The new guidance will be effective for public business entities for annual periods beginning after December 15, 2018, and interim periods therein. Early adoption is permitted. The Company has deferred the adoption of this standard as is allowable for an emerging growth company. ASU No.2014-09, In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, UBI has selected the modified retrospective method where the effect of applying the standard will be recognized at the date of initial application, without restating previous years. The Company has evaluated the impact of the adoption of ASU 2014-09 ASU No. 2017-12, On August 28, 2017, the FASB issued ASU 2017-12, For public business entities, the ASU is effective for fiscal years beginning after December 15, 2018, and interim periods therein; however, early adoption by all entities is permitted upon its issuance. The Company has deferred the adoption of this standard as is allowable for an emerging growth company. (b) Recently adopted accounting pronouncements ASU No.2016-18, On November 17, 2016, the FASB issued ASU 2016-18, ASU No.2016-15, On August 26, 2016, the FASB issued ASU 2016-15, ASU No.2016-16, On October 24, 2016, the FASB issued ASU 2016-16, ASU No.2017-01, On January 5, 2017, the FASB issued ASU 2017-01 cost-efficient. ASU No.2017-09, On May 10, 2017, the FASB issued ASU 2017-09, ASU No. 2018-05, 118.” On March 13, 2018, the FASB issued ASU 2018-05. ASU No. 2018-09, The FASB issued ASU 2018-09 Reclassification Certain prior year amounts have been reclassified to conform to the current year presentation. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | (3) Commitments and Contingent Liabilities For details on our contingent liabilities, see Notes to Consolidated Financial Statements – Note 2, Summary of Significant Accounting Policies. Operating Leases The lease for 1 Corporate Avenue, Rowville Victoria expires on March 31, 2022, with two options to renew the lease each for successive three-year periods. The Company’s primary bank has issued a bank guarantee of A$250,000 in relation to a rental bond to secure the payments under the lease. This bank guarantee, which is restricted cash, is secured by a security deposit held at the bank and has been recorded as “Restricted cash” in consolidated balance sheets. In accordance with the terms of the lease, the lessee has to restore part of the building upon vacating the premises. HRL leases approximately 482 square meters of office and laboratory facilities at 15(H) Wing, Second Floor, 711 Concession Street, Hamilton, Ontario. The lease for 711 Concession Street expires on January 31, 2020 with 2 further options to renew each for 5 years. Future minimum lease payments under non-cancelable A$ Less than 1 year 256,644 1 – 3 years 38,657 3 – 5 years 1,129 More than 5 years 0 Total minimum lease payments 296,430 Rent expense was A$750,798 and A$731,394 for the fiscal years ended December 31, 2018 and 2017, respectively. Guarantees There are cross guarantees given by Universal Biosensors, Inc., Universal Biosensors Pty Ltd and Hemostasis Reference Laboratory Inc. as described in note 15. No deficiencies of assets exist in any of these companies. No liability was recognized by the parent entity or the consolidated entity in relation to this guarantee, as the fair value of the guarantees is immaterial. Government grants UBS was awarded a grant from the Commonwealth of Australia under the Next Generation Manufacturing Investment Programme up to a maximum grant amount of A$575,000 payable over a three year period commencing from January 1, 2017. The grants are paid upon achievement of pre-agreed An amount of A$89,500 and A$271,318 were received under this grant in June 2018 and November 2017, respectively. In the event UBS had achieved milestones and received grant payments, it believes that the likelihood of being required to repay grant funding is remote because the Company continues to comply with the grant agreement. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (4) Income Taxes The Company is subject to income tax in Australia and is required to pay taxes on its Australian profits. As provided under the Australian income tax laws, UBI and its wholly owned resident subsidiary UBS have formed a tax-consolidated A reconciliation of the (benefit)/provision for income taxes is as follows: Years ended December 31, 2018 2017 A$ % A$ % Profit/(loss) before income taxes 41,916,920 (764,717 ) Computed by applying income tax rate of home jurisidction 12,575,076 30 (229,415 ) 30 Effect of tax rates in foreign jurisdictions 13,316 0 30,589 (4 ) Research and development 4,253,289 10 3,986,640 (521 ) Temporary timing differences: Share based payment 95,564 0 84,750 (11 ) Other (61,115 ) (0 ) 135,846 (18 ) Utilisation of carried forward losses (3,298,121 ) (8 ) 0 0 Utilisation of tax credits (13,046,757 ) (31 ) 0 0 Change in valuation allowance (531,252 ) (1 ) (4,008,410 ) 524 Global intangible low-taxed income (GILTI) tax 4,352,564 10 0 0 Income tax expense/(benefit) 4,352,564 10 0 0 The components of our net income/(loss) before income taxes as either domestic or foreign is as follows: As of December 31, 2018 2017 A$ A$ Foreign (44,386 ) (596,189 ) Domestic (Australia) 41,961,306 (168,528 ) 41,916,920 (764,717 ) Significant component of the Company’s deferred tax assets are shown below: As of December 31, 2018 2017 A$ A$ Deferred tax assets: Operating loss carry forwards 0 3,491,300 Depreciation and amortization 1,578,478 1,454,394 Asset retirement obligations 780,000 780,000 Employee entitlements 366,039 477,783 Accruals 1,325,955 1,292,788 Decline in value of patents 1,195,965 1,184,629 Unrealised exchange loss (583,029 ) (660,410 ) Other 241,152 (88,877 ) Total deferred tax assets 4,904,560 7,931,607 Valuation allowance for deferred tax assets (4,904,560 ) (7,931,607 ) Net deferred tax asset 0 0 Significant components of deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting and tax purposes. A valuation allowance has been established, as realization of such assets is not more likely than not. At December 31, 2018 the Company has nil (A$11,637,669 at December 31, 2017) of accumulated tax losses available for carry forward against future earnings, which under Australian tax laws do not expire but may not be available under certain circumstances. The Company also has A$3,459,966 (A$10,963,961 at December 31, 2017) of non-refundable non-refundable |
Employee Incentive Schemes
Employee Incentive Schemes | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Incentive Schemes | (5) Employee Incentive Schemes (a) Stock Option Plan In 2004, the Company adopted an employee option plan (“Plan”). Options may be granted pursuant to the Plan to any person considered by the board to be employed by the Group on a permanent basis (whether full time, part time or on a long term casual basis). Each option gives the holder the right to subscribe for one share of common stock. The total number of options that may be issued under the Plan is such maximum amount permitted by law and the Listing Rules of the ASX. The exercise price and any exercise conditions are determined by the board at the time of grant of the options. Any exercise conditions must be satisfied before the options vest and become capable of exercise. The options lapse on such date determined by the board at the time of grant or earlier in accordance with the Plan. Options granted to date have had a term up to 10 years and generally vest in equal tranches over three years. An option holder is not permitted to participate in a bonus issue or new issue of securities in respect of an option held prior to the issue of shares to the option holder pursuant to the exercise of an option. If the Company changes the number of issued shares through or as a result of any consolidation, subdivision, or similar reconstruction of the issued capital of the Company, the total number of options and the exercise price of the options (as applicable) will likewise be adjusted. Options granted in 2017 and 2018 were 10,229,500 and nil, respectively. In accordance with ASC 718, the fair value of the option grants was estimated on the date of each grant using the Trinomial Lattice model. The assumptions for these grants were: Oct-17 Oct-17 Oct-17 Feb-17 Exercise Price (A$) 0.50 0.60 0.80 0.50 Share Price at Grant Date (A$) 0.38 0.38 0.38 0.39 Volatility 68 % 68 % 68 % 69 % Expected Life (years) 5 5 5 6 Risk Free Interest Rate 2.36 % 2.36 % 2.36 % 2.47 % Fair Value of Option (A$) 0.15 0.13 0.11 0.13 Each of the inputs to the Trinomial Lattice model is discussed below. Share Price and Exercise Price at Valuation Date With the exception of ZEPOs, the value of all other options granted has been determined either using the closing price of our common stock trading in the form of CDIs on ASX at the time of grant of the options or based on an expected return. ZEPOs exercise price are nil. The ASX is the only exchange upon which our securities are quoted. Volatility We applied volatility having regard to the historical price change of our shares in the form of CDIs available from the ASX. Time to Expiry All options granted under our share option plan have a maximum 10 year term and are non-transferable. Risk free rate The risk free rate which we applied is equivalent to the yield on an Australian government bond with a time to expiry approximately equal to the expected time to expiry on the options being valued. Stock option activity during the current period is as follows: Number of shares Weighted average A$ Balance at December 31, 2017 22,003,215 0.63 Granted 0 0.00 Exercised (553,334 ) 0.00 Lapsed (6,295,997 ) 0.70 Balance at December 31, 2018 15,153,884 0.63 At December 31, 2018, the number of options exercisable was 7,510,888 (2017: 11,880,702). At December 31, 2018, total stock compensation expense/(income) recognized in the consolidated condensed statements of comprehensive income was A$318,545 (2017: A$282,501). The following table represents information relating to stock options outstanding under the plans as of December 31, 2018: Options Outstanding Options Exercise Price A$ Shares Weighted average $0.50 8,000 0 8,000 $0.00 178,334 0 178,334 $0.94 354,667 0 354,667 $1.72 560,000 1 560,000 $0.75 20,000 0 20,000 $0.73 12,000 1 12,000 $1.09 155,000 1 155,000 $0.00 50,000 1 50,000 $0.79 24,000 1 24,000 $0.71 30,000 2 30,000 $0.49 152,500 2 152,500 $0.00 80,000 2 80,000 $0.17 50,000 3 50,000 $0.23 185,000 3 185,000 $0.00 80,000 3 80,000 $0.45 224,166 4 224,166 $0.50 4,605,000 4 4,605,000 $0.33 140,667 5 97,671 $0.50 644,550 5 644,550 $0.50 1,600,000 4 0 $0.60 2,700,000 4 0 $0.80 3,300,000 4 0 15,153,884 7,510,888 The table below sets forth the number of employee stock options exercised and the number of shares issued in the period from December 31, 2016. We issued these shares in reliance upon exemptions from registration under Regulation S under the Securities Act of 1933, as amended. Period Ending Number of Options Exercised and Weighted Proceeds 2017 111,666 A$ 0.01 766 2018 553,334 A$ 0.00 0 As of December 31, 2018, there was A$579,682 of unrecognized compensation expense related to unvested share-based compensation arrangements under the Employee Option Plan. This expense is expected to be recognized as follows: Fiscal Year A$ 2019 320,926 2020 258,756 579,682 The aggregate intrinsic value for all options outstanding as at December 31, 2018 was zero. (b) Restricted Share Plan Our Employee Share Plan was adopted by the Board of Directors in 2009. The Employee Share Plan permits our Board to grant shares of our common stock to our employees and directors (although our Board has determined not to issue equity to non-executive The table below sets forth the restricted shares issued by the Company since January 1, 2017: Number of Market Value of Issued (A$) December, 2018 191,636 45,993 Restricted stock awards activity during the current period is as follows: Number of shares Weighted average Balance at December 31, 2017 492,749 0.31 Granted 191,636 0.24 Release of restricted shares (373,139 ) 0.31 Balance at December 31, 2018 311,246 0.28 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (6) Related Party Transactions Details of related party transactions material to the operations of the Group other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business, are set out below: In September 2011, we entered into a non-exclusive The license agreement and the obligation to pay royalties continues until SpeeDx’s patent rights have expired, lapsed, are found to be invalid or are rejected. The agreement will terminate by mutual agreement or by one party for breach or insolvency of the other. SpeeDx may also terminate the license agreement if the research and development on a first licensed product is not completed by UBS within 7 years (subject to certain exceptions), and UBS may terminate if it determines that it does not wish to proceed with further commercialization of SpeeDx’s technology. Mr. Denver is a director of SpeeDx and up until August 7, 2017 was a director of the Company. With effect from October 1, 2017, Mr. Denver continues to provide services to the Company in an advisory capacity between October 1, 2017 and June 30, 2018. Mr. Coleman is a Non-Executive An employee of Viburnum Funds Pty Ltd has on occasions been seconded to Universal Biosensors to assist the Company on strategic matters. During this period Viburnum Funds Pty Ltd continue to pay all the salary entitlements of the seconded person. Universal Biosensors is solely responsible for the reimbursement of certain expenditure such as travel and rental whilst the employee is on secondment. The total expenditure reimbursed by the Company to Viburnum Funds Pty Ltd as at December 31, 2018 was A$21,716. There were no other related party transactions during 2018 and 2017 other than as disclosed above. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Investments, All Other Investments [Abstract] | |
Financial Instruments | (7) Financial Instruments Years Ended December 31, 2018 2017 A$ A$ Financial assets: Cash and cash equivalents 11,797,789 26,259,918 Accounts receivables 50,209,561 4,397,268 Total financial assets 62,007,350 30,657,186 Debt: Long term secured loan 0 19,029,076 Total debt 0 19,029,076 Net financial assets 62,007,350 11,628,110 The carrying value of the cash and cash equivalents and the accounts receivable approximates fair value because of their short-term nature. We regularly review all our financial assets for impairment. There were no impairments recognized in 2018 and 2017. Derivative Instruments and Hedging Activities We had no derivatives or outstanding contracts in place through the years ended December 31, 2018 and 2017 |
Property, Plant and Equipment,
Property, Plant and Equipment, net | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, net | (8) Property, Plant and Equipment, net As of December, 31 2018 2017 A$ A$ Plant and equipment 18,028,590 26,176,290 Leasehold improvements 9,130,310 9,105,120 Capital work in process 1,943,032 1,943,032 29,101,932 37,224,442 Accumulated depreciation (23,475,544 ) (27,264,680 ) Property, plant & equipment, net 5,626,388 9,959,762 Capital work in process relates to assets under construction and comprises primarily specialized manufacturing equipment. Legal right to the assets under construction rests with the Company. The amounts capitalized for capital work in process represent the percentage of expenditure that has been completed, and once the assets are placed into service, the Company begins depreciating the respective assets. The accumulated amortisation of capitalised leasehold improvements for the fiscal years ended December 31, 2018 and 2017 was A$8,993,225 and A$8,453,505, respectively. From 2017 to 2019, the Company is entitled to receive Commonwealth of Australia grant monies under grant agreements to support its development activities, including in connection with the purchase of plant and equipment. Plant and equipment is presented net of the government grant of A$360,818 for the year ended December 31, 2018 (2017: A$271,318). The grants are recognized against the acquisition costs of the related plant and equipment as and when the related assets are purchased. Grants received in advance of the relevant expenditure are treated as deferred income and included in Current Liabilities on the balance sheet as the Company does not control the monies until the relevant expenditure has been incurred. Grants due to the Company under research agreements are recorded as Currents Assets on the balance sheet. Depreciation expense was A$2,113,454 and A$2,589,493 for the fiscal years ended December 31, 2018 and 2017, respectively. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | (9) Accrued Expenses Accrued expenses consist of the following: As of December, 31 2018 2017 A$ A$ Legal, tax and accounting fees 716,937 683,091 Salary and related costs 306,162 104,515 Research and development materials 554,496 587,126 Other 119,049 97,960 1,696,644 1,472,692 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock | 12 Months Ended |
Dec. 31, 2018 | |
Federal Home Loan Banks [Abstract] | |
Stockholders' Equity - Common Stock | (10) Stockholders’ Equity - Common Stock Holders of common stock are generally entitled to one vote per share held on all matters submitted to a vote of the holders of common stock. At any meeting of the shareholders, the presence, in person or by proxy, of the majority of the outstanding stock entitled to vote shall constitute a quorum. Except where a greater percentage is required by the Company’s amended and restated certificate of incorporation or by-laws, pre-emptive Trading in our shares of common stock on ASX is undertaken using CHESS Depositary Interests (“CDIs”). Each CDI represents beneficial ownership in one underlying share. Legal title to the shares underlying CDIs is held by CHESS Depositary Nominees Pty Ltd (“CDN”), a wholly owned subsidiary of ASX. Holders of CDIs have the same economic benefits of holding the shares, such as dividends (if any), bonus issues or rights issues as though they were holders of the legal title. Holders of CDIs are not permitted to vote but are entitled to direct CDN how to vote. Subject to Delaware General Corporation Law, dividends may be declared by the Board and holders of common stock may be entitled to participate in such dividends from time to time. |
Net Income_(Loss) per Share
Net Income/(Loss) per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Income/(Loss) per Share | (11) Net Income/(Loss) per Share Basic net income/(loss) per ordinary share was computed by dividing the net income/(loss) applicable to common stock by the weighted-average number of common stock outstanding during the period. Warrants issued to the Lenders and options granted to employees under the Universal Biosensors Employee Option Plan are considered to be potential ordinary shares for the purpose of calculating diluted net income/(loss) per share. Years Ended December 31, 2018 2017 Weighted average shares used as denominator in calculating: Basic net income/(loss) per share 176,732,183 176,417,431 Diluted net income/(loss) per share 177,152,938 176,417,431 The number of shares not included in the calculation of basic net income/(loss) per ordinary share because the impact would be anti-dilutive were 420,755 and nil for the years ended December 31, 2018 and 2017, respectively. |
Guarantees and Indemnifications
Guarantees and Indemnifications | 12 Months Ended |
Dec. 31, 2018 | |
Guarantees and Product Warranties [Abstract] | |
Guarantees and Indemnifications | (12) Guarantees and Indemnifications The amended and restated certificate of incorporation and amended and restated bylaws of the Company provide that the Company will indemnify officers and directors and former officers and directors in certain circumstances, including for expenses, judgments, fines and settlement amounts incurred by them in connection with their services as an officer or director of the Company or its subsidiaries, provided that such person acted in good faith and in a manner such person reasonably believed to be in the best interests of the Company, and, with respect to any criminal action or proceeding, the Company had reasonable cause to believe that such person’s conduct was not unlawful. In addition to the indemnities provided in the amended and restated certificate of incorporation and amended and restated bylaws, the Company has entered into indemnification agreements with certain of its officers and each of its directors. Subject to the relevant limitations imposed by applicable law, the indemnification agreements, among other things: • indemnify the relevant officers and directors for certain expenses, judgments, fines and settlement amounts incurred by them in connection with their services as an officer or director of the Company or its subsidiaries; and • require the Company to make a good faith determination whether or not it is practicable to maintain liability insurance for officers and directors or to ensure the Company’s performance of its indemnification obligations under the agreements. The Company maintains directors’ and officers’ liability insurance providing for the indemnification of our directors and certain of our officers against certain liabilities incurred as a director or officer, including costs and expenses associated in defending legal proceedings. In accordance with the terms of the insurance policy and commercial practice, the amount of the premium is not disclosed. No liability has arisen under these indemnities as of December 31, 2018 and 2017. |
Segments
Segments | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segments | (13) Segments The Company operates in one segment. The principal activities of the Company are research and development, commercial manufacture of approved medical or testing devices and the provision of services including contract research work. The Company operates predominantly in one geographical area, being Australia and continues to derive significant revenues from LifeScan. Beyond 2018 we will not be receiving any quarterly services fees from LifeScan as it has exercised its right to convert its obligation to pay quarterly service fees to us. The Company’s material long-lived assets are all based in Australia. Our total revenue as disclosed below is attributed to countries based on location of customer. Location has been determined generally based on contractual arrangements. Years Ended December 31, 2018 2017 A$ A$ Home country - Australia 490,962 294,717 Foreign countries - U.S.A. 1,428,350 1,131,772 - Germany 1,603,817 3,641,781 - Switzerland 66,084,950 20,057,644 - Canada 238,056 222,229 - Other 101,817 137,854 Total - foreign countries 69,456,990 25,191,280 Total income 69,947,952 25,485,997 % of total income derived from - LifeScan 94 % 79 % - Siemens 3 % 18 % - Other 2 % 3 % |
Deed of Cross Guarantee
Deed of Cross Guarantee | 12 Months Ended |
Dec. 31, 2018 | |
Text Block [Abstract] | |
Deed of Cross Guarantee | (14) Deed of Cross Guarantee Universal Biosensors, Inc. and its wholly owned subsidiary, Universal Biosensors Pty Ltd, are parties to a deed of cross guarantee under which each company guarantees the debts of the other. By entering into the deed, the wholly-owned entity has been relieved from the requirements to prepare a financial report and directors’ report under Class Order 98/1418 (as amended) issued by the Australian Securities and Investments Commission. The above companies represent a “Closed Group” for the purposes of the Class Order, and as there are no other parties to the Deed of Cross Guarantee that are controlled by Universal Biosensors, Inc., they also represent the “Extended Closed Group”. The consolidated financial statements presented within this report comprise that of Universal Biosensors, Inc. and its wholly owned subsidiary, Universal Biosensors Pty Ltd. These two entities also represent the “Closed Group” and the “Extended Closed Group”. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Borrowings | (15) Borrowings The Company repaid its borrowings in November 2018. December 31, 2018 December 31, 2017 US$ A$ US$ A$ 2018 0 1,956,563 2019 0 15,875,875 2020 0 0 Thereafter 0 0 Total minimum payments 0 17,832,438 Less amount representing interest and other fees 0 (2,832,438 ) Gross balance of long term debt 0 15,000,000 Less fair value of warrants recorded within loan (a) (815,655 ) (815,655 ) Plus interest accretion 815,655 658,334 Total carrying value 0 0 14,842,679 19,029,076 Less current portion 0 0 0 0 Total carrying value, non-current 0 0 14,842,679 19,029,076 For 2017, the carrying value of the borrowings approximated its fair value. The fair value was estimated by discounting future cash flows at the currently offered rates for borrowings of similar remaining maturities. (a) The warrants issued in December 2013 had a grant date fair value of US$815,655 and are included in equity. Athyrium Credit Agreement On December 19, 2013 (“Closing Date”), UBI and its wholly owned subsidiary, UBS (together UBI and UBS, the “Transaction Parties”) entered into a credit agreement with Athyrium Opportunities Fund (A) LP (“Athyrium A”), as administrative agent (the “Administrative Agent”) and as a lender, and Athyrium Opportunities Fund (B) LP (“Athyrium B”) as a lender (Athyrium A and Athyrium B together with any other lenders party thereto from time to time, the “Lenders”) for a secured term loan of up to US$25 million, which was amended on January 30, 2015 (“Credit Agreement”). Of this amount, US$15 million had been drawn at December 31, 2013, with a further US$10 million available to be drawn down on or before July 31, 2015 if UBS satisfied certain conditions precedent relating to product revenues. The credit agreement was amended again on December 29, 2017 (“Amendment”). Subject to the terms of the Amendment, the Amendment modifies the Credit Agreement to (i) extend the maturity date to July 1, 2019 (“Maturity Date”), (ii) add the Borrower’s wholly owned subsidiary, Hemostasis Reference Laboratory, Inc. (“HRL”), as a guarantor of the Borrower’s obligations under the Credit Agreement and (iii) subject to the prior written consent of the Lenders in their sole discretion, permit UBI to repurchase shares in an aggregate amount up to $2,000,000 within 12 months after the date Lenders provide any such consent. In connection with the Amendment, UBI has agreed to pay a fee of US $200,000 to the Lenders and to reimburse certain expenses of the Lenders incurred in connection with the Amendment. The fee of US$200,000 was paid in January 2018. The term loan was voluntary prepaid in November 2018 and a Deed of Release was executed in December 2018 releasing all the Transaction Parties securities and obligations under the term loan. The term loan bore interest at 10.5% per annum payable in cash quarterly in arrears over the term, and as otherwise described in the Credit Agreement. A default interest rate of 13% per annum applied during the existence of a default under the Credit Agreement. The term loan under the Credit Agreement was secured by substantially all of UBI, UBS’ and HRL’s assets. UBI and HRL (together with any future subsidiaries) guaranteed all of UBS’s obligations under the term loan. Voluntary prepayments of the term loans were not permitted prior to the second anniversary of the Closing Date, except in the event of a change of control of a Transaction Party. After the second anniversary, UBS could make voluntary repayments in minimum principal amounts of US$2,500,000 together with interest, plus a prepayment premium commencing at 15% of the principal of such prepayment due and payable on the applicable date and reducing pro-rata As further described below, pursuant to the Credit Agreement, UBI issued to the Lenders warrants entitling the holder to purchase up to an aggregate total of 4.5 million shares of UBI’s common stock in the form of CDIs at a price of A$1.00 per share (the “Exercise Price”), which represents a 117% premium over the closing price of UBI’s common stock on December 19, 2013. The warrants are immediately exercisable and have a term of seven years. Other In December 2016, UBS entered into an arrangement with Elantis Premium Funding Ltd to fund the Group’s 2017 insurance premium. The total amount financed was A$369,630 at inception and the short-term borrowing was fully repaid in September 2017. Interest was charged at a fixed rate of 2.60% per annum. The short-term borrowing was secured by the insurance premium refund. The Company’s 2018 and 2017 insurance program was funded from its operating cash flows. |
Warrants
Warrants | 12 Months Ended |
Dec. 31, 2018 | |
Text Block [Abstract] | |
Warrants | (16) Warrants Pursuant to the Credit Agreement, UBI issued to the Lenders warrants entitling the holder to purchase up to an aggregate total of 4.5 million shares of UBI’s common stock in the form of CDIs at a price of A$1.00 per share (the “Exercise Price”), which represents a 117% premium over the closing price of UBI’s common stock on December 19, 2013. The warrants are immediately exercisable and have a term of seven years. The warrants may be exercised at any time until December 19, 2020, in whole or in part in minimum multiples of 500,000 shares of common stock. The holder of the warrants can pay the Exercise Price in cash or it has the right to pay all or a portion of the Exercise Price by making a cashless exercise, therefore reducing the number of shares of common stock the holder would otherwise be issued. The warrant is subject to adjustments in the event of certain issuances by UBI, such as bonus issues, pro rata (rights) issues and reorganizations (e.g. consolidation, subdivision). The Company assessed that the warrants are not liabilities within scope of ASC 480-10-25. However, the scope exception in accordance with ASC 815-10-15-74 The debt issuance costs were recorded as deferred issuance costs and are amortized as interest expense, using the effective interest method, over the term of the loan pursuant to ASC 835-30-35-2. |
Restricted Cash
Restricted Cash | 12 Months Ended |
Dec. 31, 2018 | |
Cash and Cash Equivalents [Abstract] | |
Restricted Cash | (17) Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows. Years Ended December 31, 2018 2017 A$ A$ Cash and cash equivalents 11,797,789 26,259,918 Restricted cash - current assets 15,589 15,309 Restricted cash - non-current 320,000 3,220,000 12,133,378 29,495,227 Years Ended December 31, 2018 2017 A$ A$ Collateral for facilities (a) - current assets 15,589 15,309 Collateral for facilities (b) - non-current 320,000 320,000 Financial covenant pursuant to the credit agreement (c) - current assets 0 2,900,000 335,589 3,235,309 (a) Represents bank guarantee of CDN$15,000 as security deposit on HRL’s credit card (b) Represents bank guarantee of A$250,000 for commercial lease of UBS’ premises and security deposit on Company’s credit cards of A$70,000 (c) Represents amounts pledged as collateral for financing arrangements as contractually required by the Lenders. This restriction lapsed upon the repayment of the term loan Interest earned on the restricted cash as at December 31, 2018 and 2017 were A$62,037 and A$73,615, respectively. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | (18) Subsequent Events On February 8, 2019, we entered into a Term Sheet Agreement with UBS and Siemens pursuant to which we have agreed to negotiate with UBS and Siemens in good faith for a specified period (subject to extension if mutually agreed) possible modifications to our commercial relationship, including the Collaboration Agreement and Supply Agreements. Under the term sheet agreement, our obligations, as well as those of UBS and Siemens, to apply commercially reasonable efforts and to apply reasonably necessary resource to certain research and development activities under the Collaboration Agreement have been suspended pending the outcome of the negotiation. Under the Term Sheet Agreement, we and UBS have also agreed to not make any dividend payments or similar distributions, or engage in M&A transactions (subject to an exception which would allow us and UBS to enter into M&A transactions where the directors of either company determine, in good faith, that not proceeding with such a transaction would be inconsistent with their fiduciary duties). |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Universal Biosensors, Inc. Schedule ii – Valuation and Qualifying Accounts (for the years ended December 31, 2018 and 2017) Additions Balance at Charged to Charged to Deductions Balance at end A$ A$ A$ A$ A$ Year ended December 31, 2017 Deferred income tax valuation allowance 12,106,409 (4,008,410 ) (166,392 ) 0 7,931,607 Year ended December 31, 2018 Deferred income tax valuation allowance 7,931,607 (16,876,129 ) 13,849,082 0 4,904,560 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the financial statements of the Company and its wholly owned subsidiaries, UBS and HRL. All intercompany balances and transactions have been eliminated on consolidation. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements requires management of the Company to make a number of estimates and assumptions relating to the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Significant items subject to such estimates and assumptions include the recognition of revenue, carrying amount of property, plant and equipment, income tax expense, deferred income taxes, asset retirement obligations, liabilities related to employee benefits, warrants and research and development tax incentive income. Actual results could differ from those estimates. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments purchased with an initial maturity of three months or less to be cash equivalents. For cash and cash equivalents, the carrying amount approximates fair value due to the short maturity of those instruments. The Company maintains cash and restricted cash, which includes tenant and credit card security deposits. As at December 31, 2018 and 2017, the Company has not realized any losses in such cash accounts and believes it is not exposed to any significant risk of loss. |
Short-Term Investments (Held-to-maturity) | Short-Term Investments (Held-to-maturity) Short-term investments constitute all highly liquid investments with term to maturity from three months to twelve months. The carrying amount of short-term investments is equivalent to their fair value. |
Concentration of Credit Risk and Other Risks and Uncertainties | Concentration of Credit Risk and Other Risks and Uncertainties Cash and cash equivalents and accounts receivable consist of financial instruments that potentially subject the Company to concentration of credit risk to the extent of the amount recorded on the consolidated balance sheets. The Company’s cash and cash equivalents are primarily invested with one of Australia’s largest banks. The Company is exposed to credit risk in the event of default by the banks holding the cash or cash equivalents to the extent of the amount recorded on the consolidated balance sheets. The Company has not experienced any losses on its deposits of cash and cash equivalents. The Company has not identified any collectability issues with respect to receivables. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Derivative financial instruments The Company may use derivative financial instruments to hedge its exposure to foreign exchange arising from operating, investing and financing activities. The Company does not hold or issue derivative financial instruments for trading purposes. However, derivatives that do not qualify for hedge accounting are accounted for as trading instruments. Derivative financial instruments are recognized initially at fair value. Subsequent to initial recognition, derivative financial instruments are stated at fair value. The gain or loss on remeasurement to fair value is recognized immediately in the income statement. However, where derivatives qualify for hedge accounting, recognition of any resultant gain or loss depends on the nature of the item being hedged. Cash flow hedges Exposure to foreign exchange risks arises in the normal course of the Company’s business and it is the Company’s policy to use forward exchange contracts to hedge anticipated sales and purchases in foreign currencies. The amount of forward cover taken is in accordance with approved policy and internal forecasts. Where a derivative financial instrument is designated as a hedge of the variability in cash flows of a recognized asset or liability, or a highly probable forecast transaction, the effective part of any unrealized gain or loss on the derivative financial instrument is recognized directly in equity. When the forecast transaction subsequently results in the recognition of a non-financial non-financial non-financial For cash flow hedges, other than those covered by the preceding statement, the associated cumulative gain or loss is removed from equity and recognized in the consolidated statements of comprehensive income in the same period or periods during which the hedged forecast transaction affects the consolidated statements of comprehensive income and on the same line item as that hedged forecast transaction. The ineffective part of any gain or loss is recognized immediately in the consolidated statements of comprehensive income. When a hedging instrument expires or is sold, terminated or exercised, or the Company revokes designation of the hedge relationship but the hedged forecast transaction is still probable to occur, the cumulative gain or loss at that point remains in equity and is recognized in accordance with the above policy when the transaction occurs. If the hedged transaction is no longer expected to take place, then the cumulative unrealized gain or loss recognized in equity is recognized immediately in the consolidated statements of comprehensive income. Derivative Instruments and Hedging Activities In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as consider our own and counterparty credit risk. For years ended December 31, 2018 and 2017, we did not have any assets or liabilities that utilize Level 3 inputs. The valuation of our foreign exchange derivatives are based on the market approach using observable market inputs, such as forward rates and incorporate non-performance |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying value of all current assets and current liabilities approximates fair value because of their short-term nature. The estimated fair value of all other amounts has been determined, depending on the nature and complexity of the assets or the liability, by using one or all of the following approaches: • Market approach – based on market prices and other information from market transactions involving identical or comparable assets or liabilities. • Cost approach – based on the cost to acquire or construct comparable assets less an allowance for functional and/or economic obsolescence. • Income approach – based on the present value of a future stream of net cash flows. These fair value methodologies depend on the following types of inputs: • Quoted prices for identical assets or liabilities in active markets (Level 1 inputs). • Quoted prices for similar assets or liabilities in active markets or quoted prices for identical or similar assets or liabilities in markets that are not active or are directly or indirectly observable (Level 2 inputs). • Unobservable inputs that reflect estimates and assumptions (Level 3 inputs). |
Inventory | Inventory Inventories are stated at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and estimated costs necessary to dispose. Inventories are principally determined under the average cost method which approximates cost. Cost comprises direct materials, direct labour and an appropriate portion of variable and fixed overhead expenditure, the latter being allocated on the basis of normal operating capacity. Cost also includes the transfer from equity of any gains/losses on qualifying cash flow hedges relating to purchases of raw material. Costs of purchased inventory are determined after deducting rebates and discounts. Years Ended December 31, 2018 2017 A$ A$ Raw materials 302,056 380,540 Work in progress 442,410 253,483 Finished goods 0 28,109 744,466 662,132 |
Receivables | Receivables Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the best estimate of the amount of probable credit losses in the existing accounts receivable. The allowance is determined based on a review of individual accounts for collectability, generally focusing on those accounts that are past due. The expense to adjust the allowance for doubtful accounts, if any, is recorded within general and administrative expenses in the consolidated statements of comprehensive income. Account balances are charged against the allowance when it is probable the receivable will not be recovered. Years Ended December 31, 2018 2017 A$ A$ Accounts receivable 50,209,561 4,397,268 Allowance for doubtful debts 0 0 50,209,561 4,397,268 |
Property, Plant, and Equipment, net | Property, Plant, and Equipment - net Property, plant, and equipment are recorded at acquisition cost, less accumulated depreciation. Depreciation on plant and equipment is calculated using the straight-line method over the estimated useful lives of the assets. The estimated useful life of machinery and equipment is 3 to 10 years. Leasehold improvements are amortized on the straight-line method over the shorter of the remaining lease term or estimated useful life of the asset. Maintenance and repairs are charged to operations as incurred, include normal services, and do not include items of a capital nature. The Company receives Commonwealth of Australia grant monies under grant agreements to support its development activities (refer section on “Government grants”), including in connection with the purchase of plant and equipment. Plant and equipment is presented net of the government grant. The grant monies are recognized against the acquisition costs of the related plant and equipment as and when the related assets are purchased. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews its capital assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. In performing the review, the Company estimates undiscounted cash flows from products under development that are covered by these patents and licenses. An impairment loss would be recognized when estimated undiscounted future cash flows expected to result from the use of the asset and its eventual disposition is less than the carrying amount of the asset. If the evaluation indicates that the carrying value of an asset is not recoverable from its undiscounted cash flows, an impairment loss is measured by comparing the carrying value of the asset to its fair value, based on discounted cash flows. Impairment of long-lived assets as at December 31, 2018 and 2017 were A$2,574,709 and nil, respectively. |
Other Liabilities | Other Liabilities Other liabilities represent marketing support payment due to LifeScan. Years Ended December 31, 2018 2017 A$ A$ Current liabilites Marketing support payment 2,902,525 2,626,413 2,902,525 2,626,413 During 2009, LifeScan chose not to proceed with the registration of the then current product but to proceed with an enhanced product, called OneTouch Verio ® |
Research and Development | Research and Development Research and development expenses consist of costs incurred to further the Group’s research and product development activities and include salaries and related employee benefits, costs associated with clinical trial and preclinical development, regulatory activities, research-related overhead expenses, costs associated with the manufacture of clinical trial material, costs associated with developing a commercial manufacturing process, costs for consultants and related contract research, facility costs and depreciation. Research and development costs are expensed as incurred. Research and development expenses for the respective periods are as follows: Years Ended December 31, 2018 2017 A$ A$ Research and development expenses 11,578,246 10,828,879 |
Income Taxes | Income Taxes The Company applies ASC 740 - Income Taxes which establishes financial accounting and reporting standards for the effects of income taxes that result from a company’s activities during the current and preceding years. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Where it is more likely than not that some portion or all of the deferred tax assets will not be realized, the deferred tax assets are reduced by a valuation allowance. The valuation allowance is sufficient to reduce the deferred tax assets to the amount that is more likely than not to be realized. A reconciliation of the valuation and qualifying accounts is attached as Schedule ii. Pursuant to the new U.S. tax reform rules, UBI is subject to regulations addressing Global Intangible Low-Taxed Income (“GILTI”) effective in 2018. The GILTI rules are new provisions of the U.S. tax code enacted as a part of tax reform legislation in the U.S. passed in December 2017. Mechanically, the GILTI rule functions as a global minimum tax for all U.S. shareholders of controlled foreign corporations (“CFCs”) and applies broadly to certain income generated by a CFC. The Company can make an accounting policy election to either: (1) treat GILTI as a period cost if and when incurred; or (2) recognize deferred taxes for basis differences that are expected to reverse as GILTI in future years. The Company has elected to treat GILTI as a period cost. We are subject to income taxes in the United States, Canada and Australia. Tax returns up to and including the 2017 financial year has been filed in all these jurisdictions. |
Asset Retirement Obligations | Asset Retirement Obligations Asset retirement obligations (“ARO”) are legal obligations associated with the retirement and removal of long-lived assets. ASC 410 – Asset Retirement and Environmental Obligations requires entities to record the fair value of a liability for an asset retirement obligation when it is incurred. When the liability is initially recorded, the Company capitalizes the cost by increasing the carrying amounts of the related property, plant and equipment. Over time, the liability increases for the change in its present value, while the capitalized cost depreciates over the useful life of the asset. The Company derecognizes ARO liabilities when the related obligations are settled. The ARO is in relation to our premises where in accordance with the terms of the lease, the lessee has to restore part of the building upon vacating the premises. ARO for the years ended December 31, 2018, and 2017 was A$2,600,000. |
Australian Goods and Services Tax (GST) and Canadian Harmonized Sales Tax (HST) | Australian Goods and Services Tax (GST) and Canadian Harmonized Sales Tax (HST) Revenues, expenses and assets are recognized net of the amount of associated GST and HST, unless the GST and HST incurred is not recoverable from the taxation authority. In this case it is recognized as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables are stated inclusive of the amount of GST and HST receivable or payable. The net amount of GST and HST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the consolidated balance sheets. |
Revenue Recognition | Revenue Recognition We recognize revenue from all sources based on the provisions of the U.S. SEC’s Staff Accounting Bulletin No. 104 and ASC 605 Revenue Recognition. The Company’s revenue represents revenue from sales of products, provision of services and collaborative research and development agreements. We recognize revenue from sales of products at the time title of goods passes to the buyer and the buyer assumes the risks and rewards of ownership, assuming all other revenue recognition criteria have been met. Generally, this is at the time products are shipped to the customer. Revenue from services is recognized when a persuasive evidence of an arrangement exists, services have been rendered, the price is fixed or determinable, and collectability is reasonably assured. Revenue recognition principles are assessed for each new contractual arrangement and the appropriate accounting is determined for each service. On September 21, 2018 LifeScan exercised its right to convert its obligation to pay quarterly service fees to us. The lump sum service fees of US$31,503,880 (equivalent to A$44,635,704) was paid to Universal Biosensors on February 18, 2019. The lump sum service fee has been calculated by multiplying the total quarterly service fees received for the 2018 financial year by two and converting the same into AUD using the period end exchange rate. We assessed if any amount of the lump sum service fees were attributable to the remaining obligation under the Master Services and Supply Agreement that states that LifeScan could require us to provide manufacturing services at our Rowville facility to recommence production of glucose strips. We conclude that this obligation has no fair value attributable to it due to (i) high set-up Where our agreements contain multiple elements, or deliverables, such as the manufacture and sale of products, provision of services or research and development activities, they are assessed to determine whether separate delivery of the individual elements of such arrangements comprises more than one unit of accounting. Where an arrangement can be divided into separate units of accounting (each unit constituting a separate earnings process), the arrangement consideration is allocated amongst those varying units based on the relative selling price of the separate units of accounting and the applicable revenue recognition criteria applied to the separate units. Selling prices are determined using fair value as determined by either vendor specific objective evidence or third party evidence of the selling price, when available, or the Company’s best estimate of selling price when fair value is not available for a given unit of accounting. Under ASC 605-25, non-refundable, We typically generate milestone payments from our customers pursuant to the various agreements we have with them. Non-refundable non-refundable non-refundable Management has concluded that the core operations of the Company are expected to be the research and development activities, commercial manufacture of approved medical or testing devices and the provision of services. The Company’s ultimate goal is to utilize the underlying technology and skill base for the development of marketable products that the Company will manufacture. The Company considers revenue from the sales of products, revenue from services and the income received from milestone payments indicative of its core operating activities or revenue producing goals of the Company, and as such have accounted for this income as “revenues”. |
Master Services and Supply Agreement | Master Services and Supply Agreement In October 2007, the Company and LifeScan entered into a Master Services and Supply Agreement, under which the Company would provide certain services to LifeScan in the field of blood glucose monitoring and act as a non-exclusive All consideration within the Master Services and Supply Agreement is contingent. The Company concluded the undelivered items were not priced at a significant incremental discount to the delivered items and revenue for each deliverable will be recognized as each contingency is met and the consideration becomes fixed and determinable. The milestone payment was considered to be a substantive payment and the entire amount has been recognized as revenue when the regulatory approval was received. Revenues for contract manufacturing and ongoing efforts to enhance the product are recognized as revenue from products or revenue from services, respectively, when the four basic criteria for revenue recognition are met. |
Collaboration Agreement | Collaboration Agreement On September 9, 2011 the Company entered into a Collaboration Agreement with Siemens to develop coagulation related products for hospital point-of-care up-front, non-refundable up-front |
Interest income | Interest income Interest income is recognized as it accrues, taking into account the effective yield on the cash and cash equivalents. |
Research and development tax incentive income | Research and development tax incentive income Research and development tax incentive income is recognized when there is reasonable assurance that the income will be received, the relevant expenditure has been incurred, and the consideration can be reliably measured. The research and development tax incentive is one of the key elements of the Australian Government’s support for Australia’s innovation system and is supported by legislative law primarily in the form of the Australian Income Tax Assessment Act 1997 as long as eligibility criteria are met. Generally speaking, entities which are an R&D entity involved in eligible R&D activities may claim research and development tax incentive income as follows: 1. as a 43.5% refundable tax offset if aggregate turnover (which generally means an entity’s total income that it derives in the ordinary course of carrying on a business, subject to certain exclusions) of the entity is less than A$20 million, or 2. as a 38.5% non-refundable In accordance with SEC Regulation S-X 5-03, non-operating Management has assessed the Company’s research and development activities and expenditures to determine which activities and expenditures are likely to be eligible under the tax incentive regime described above. At each period end management estimates the refundable tax offset available to the Company based on available information at the time. This estimate is also reviewed by external tax advisors on an annual basis. For the year ended December 31, 2018 and 2017, the aggregate turnover of the Company had exceeded A$20 million and accordingly it was not eligible for a refundable tax offset. The Company was however eligible for the non-refundable |
Foreign Currency | Foreign Currency Functional and reporting currency Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (“the functional currency”). The functional currency of UBI and UBS is AUD or A$ for all years presented. The functional currency of HRL is Canadian dollars (“CAD$”). The consolidated financial statements are presented using a reporting currency of Australian dollars. Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end The Company has recorded foreign currency transaction gains of A$577,505 and A$731,289 in each of the years ended December 31, 2018 and 2017, respectively. The results and financial position of all the Group entities that have a functional currency different from the reporting currency are translated into the reporting currency as follows: • assets and liabilities for each balance sheet item reported are translated at the closing rate at the date of that balance sheet; • income and expenses for each income statement item reported are translated at average exchange rates (unless this is not a reasonable approximation of the effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions); and • all resulting exchange differences are recognized as a separate component of equity. On consolidation, exchange differences arising from the translation of any net investment in foreign entities are taken to the Accumulated Other Comprehensive Income. |
Commitments and Contingencies | Commitments and Contingencies Liabilities for loss contingencies, arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. These were nil as at December 31, 2018 and 2017. Purchase commitments contracted for as at December 31, 2018 and 2017 were A$941,864 and A$2,359,443, respectively. |
Patent and License Costs | Patent and License Costs Legal and maintenance fees incurred for patent application costs have been charged to expense and reported in general and administrative expense. |
Clinical Trial Expenses | Clinical Trial Expenses Clinical trial costs are a component of research and development expenses. These expenses include fees paid to participating hospitals and other service providers, which conduct certain testing activities on behalf of the Company. Depending on the timing of payments to the service providers and the level of service provided, the Company records prepaid or accrued expenses relating to these costs. These prepaid or accrued expenses are based on estimates of the work performed under service agreements. |
Leased Assets | Leased Assets All of the Company’s leases for the years ended December 31, 2018 and 2017 are considered operating leases. The costs of operating leases are charged to the consolidated statements of comprehensive income on a straight-line basis over the lease term. |
Stock-based Compensation | Stock-based Compensation We measure stock-based compensation at grant date, based on the estimated fair value of the award, and recognize the cost as an expense on a straight-line basis over the vesting period of the award. We estimate the fair value of stock options using the Trinomial Lattice model. We also grant our employees Restricted Stock Units (“RSUs”) and zero exercise price employee options (“ZEPOs”). RSUs are stock awards granted to employees that entitle the holder to shares of common stock as the award vests. ZEPOs are stock options granted to employees that entitle the holder to shares of common stock as the award vests. The value of RSUs are determined and fixed on the grant date based on the Company’s stock price. The exercise price of ZEPOs is nil. See note 5 for further details. We record deferred tax assets for awards that will result in deductions on our income tax returns, based on the amount of compensation cost recognized and our statutory tax rate in the jurisdiction in which we will receive a deduction. Differences between the deferred tax assets recognized for financial reporting purposes and the actual tax deduction reported in our income tax return are recorded in expense or in capital in excess of par value if the tax deduction exceeds the deferred tax assets or to the extent that previously recognized credits to paid-in-capital |
Employee Benefit Costs | Employee Benefit Costs The Company contributes 9.50% of each employee’s salary to standard defined contribution superannuation funds on behalf of all UBS employees. Superannuation is a compulsory savings program whereby employers are required to pay a portion of an employee’s remuneration to an approved superannuation fund that the employee is typically not able to access until they have reached the statutory retirement age. Whilst the Company has a third party default superannuation fund, it permits UBS employees to choose an approved and registered superannuation fund into which the contributions are paid. Contributions are charged to the consolidated statements of comprehensive income as they become payable. |
Registered Retirement Savings Plan and Deferred Sharing Profit Plan | Registered Retirement Savings Plan and Deferred Sharing Profit Plan The Company provides eligible HRL employees a retirement plan. The retirement plan includes a Registered Retirement Savings Plan (“RRSP”) and Deferred Profit Sharing Plan (“DPSP”). The RRSP is voluntary and the employee contributions are matched by the Company up to a maximum of 5% based on their continuous years of service and placed into the DPSP. The Company contributes 1% to 2% of the employee’s base earnings towards the DPSP. The DPSP contributions are vested immediately |
Benefit Plan | Benefit Plan The Company provides eligible HRL employees. In general, the Benefit Plan includes extended health care, dental care, basic life insurance, basic accidental death and dismemberment, and disability insurance. |
Net Income/(Loss) per Share and Anti-dilutive Securities | Net Income/(Loss) per Share and Anti-dilutive Securities Basic and diluted net income/(loss) per share is presented in conformity with ASC 260 – Earnings per Share. Basic and diluted net income/(loss) per share has been computed using the weighted-average number of common shares outstanding during the period. Diluted net income/(loss) per share is calculated by adjusting the basic net income/(loss) per share by assuming all dilutive potential ordinary shares are converted. |
Total Comprehensive Income/(Loss) | Total Comprehensive Income/(Loss) The Company follows ASC 220 – Comprehensive Income. Comprehensive income/(loss) is defined as the total change in shareholders’ equity during the period other than from transactions with shareholders, and for the Company, includes net income/(loss). The tax effect allocated to each component of other comprehensive income/(loss) is as follows: Before-Tax Tax (Expense)/ Benefit Net-of-Tax A$ A$ A$ 2018 Foreign currency translation reserve (24,462 ) 0 (24,462 ) Reclassification for gains realised in net income 0 0 0 Other comprehensive loss (24,462 ) 0 (24,462 ) 2017 Foreign currency translation reserve (3,506 ) 0 (3,506 ) Reclassification for gains realised in net income 0 0 0 Other comprehensive loss (3,506 ) 0 (3,506 ) |
Business combinations | Business combinations Business combinations are accounted for using the acquisition method of accounting. Acquisition cost is measured as the aggregate of the fair value at the date of acquisition of the assets given, equity instruments issued or liabilities incurred or assumed. Acquisition related costs are expensed as incurred (except for those costs arising on the issue of equity instruments which are recognised directly in equity). Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured at fair value on the acquisition date. Goodwill is measured as the excess of the acquisition cost, the amount of any non-controlling |
Recent Accounting Pronouncements | Recent Accounting Pronouncements (a) Recent issued accounting standards not yet adopted ASU No.2016-02, On February 25, 2016, the FASB issued ASU 2016-02, 2016-02 The new guidance will be effective for public business entities for annual periods beginning after December 15, 2018, and interim periods therein. Early adoption is permitted. The Company has deferred the adoption of this standard as is allowable for an emerging growth company. ASU No.2014-09, In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, UBI has selected the modified retrospective method where the effect of applying the standard will be recognized at the date of initial application, without restating previous years. The Company has evaluated the impact of the adoption of ASU 2014-09 ASU No. 2017-12, On August 28, 2017, the FASB issued ASU 2017-12, For public business entities, the ASU is effective for fiscal years beginning after December 15, 2018, and interim periods therein; however, early adoption by all entities is permitted upon its issuance. The Company has deferred the adoption of this standard as is allowable for an emerging growth company. (b) Recently adopted accounting pronouncements ASU No.2016-18, On November 17, 2016, the FASB issued ASU 2016-18, ASU No.2016-15, On August 26, 2016, the FASB issued ASU 2016-15, ASU No.2016-16, On October 24, 2016, the FASB issued ASU 2016-16, ASU No.2017-01, On January 5, 2017, the FASB issued ASU 2017-01 cost-efficient. ASU No.2017-09, On May 10, 2017, the FASB issued ASU 2017-09, ASU No. 2018-05, 118.” On March 13, 2018, the FASB issued ASU 2018-05. ASU No. 2018-09, The FASB issued ASU 2018-09 |
Reclassification | Reclassification Certain prior year amounts have been reclassified to conform to the current year presentation. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Inventory, Net | Costs of purchased inventory are determined after deducting rebates and discounts. Years Ended December 31, 2018 2017 A$ A$ Raw materials 302,056 380,540 Work in progress 442,410 253,483 Finished goods 0 28,109 744,466 662,132 |
Summary of Receivables | Account balances are charged against the allowance when it is probable the receivable will not be recovered. Years Ended December 31, 2018 2017 A$ A$ Accounts receivable 50,209,561 4,397,268 Allowance for doubtful debts 0 0 50,209,561 4,397,268 |
Other Liabilities | Other liabilities represent marketing support payment due to LifeScan. Years Ended December 31, 2018 2017 A$ A$ Current liabilites Marketing support payment 2,902,525 2,626,413 2,902,525 2,626,413 |
Research and Development Expenses | Research and development expenses for the respective periods are as follows: Years Ended December 31, 2018 2017 A$ A$ Research and development expenses 11,578,246 10,828,879 |
Effects of Allocated Tax to Each Component of Other Comprehensive Income/(loss) | The tax effect allocated to each component of other comprehensive income/(loss) is as follows: Before-Tax Tax (Expense)/ Benefit Net-of-Tax A$ A$ A$ 2018 Foreign currency translation reserve (24,462 ) 0 (24,462 ) Reclassification for gains realised in net income 0 0 0 Other comprehensive loss (24,462 ) 0 (24,462 ) 2017 Foreign currency translation reserve (3,506 ) 0 (3,506 ) Reclassification for gains realised in net income 0 0 0 Other comprehensive loss (3,506 ) 0 (3,506 ) |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Lease Payments Under Non-cancelable Operating Leases | Future minimum lease payments under non-cancelable A$ Less than 1 year 256,644 1 – 3 years 38,657 3 – 5 years 1,129 More than 5 years 0 Total minimum lease payments 296,430 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of (Benefit)/Provision for Income Taxes | A reconciliation of the (benefit)/provision for income taxes is as follows: Years ended December 31, 2018 2017 A$ % A$ % Profit/(loss) before income taxes 41,916,920 (764,717 ) Computed by applying income tax rate of home jurisidction 12,575,076 30 (229,415 ) 30 Effect of tax rates in foreign jurisdictions 13,316 0 30,589 (4 ) Research and development 4,253,289 10 3,986,640 (521 ) Temporary timing differences: Share based payment 95,564 0 84,750 (11 ) Other (61,115 ) (0 ) 135,846 (18 ) Utilisation of carried forward losses (3,298,121 ) (8 ) 0 0 Utilisation of tax credits (13,046,757 ) (31 ) 0 0 Change in valuation allowance (531,252 ) (1 ) (4,008,410 ) 524 Global intangible low-taxed income (GILTI) tax 4,352,564 10 0 0 Income tax expense/(benefit) 4,352,564 10 0 0 |
Components of Net Income/(Loss) before Income Taxes | The components of our net income/(loss) before income taxes as either domestic or foreign is as follows: As of December 31, 2018 2017 A$ A$ Foreign (44,386 ) (596,189 ) Domestic (Australia) 41,961,306 (168,528 ) 41,916,920 (764,717 ) |
Significant Components of Deferred Tax Assets | Significant component of the Company’s deferred tax assets are shown below: As of December 31, 2018 2017 A$ A$ Deferred tax assets: Operating loss carry forwards 0 3,491,300 Depreciation and amortization 1,578,478 1,454,394 Asset retirement obligations 780,000 780,000 Employee entitlements 366,039 477,783 Accruals 1,325,955 1,292,788 Decline in value of patents 1,195,965 1,184,629 Unrealised exchange loss (583,029 ) (660,410 ) Other 241,152 (88,877 ) Total deferred tax assets 4,904,560 7,931,607 Valuation allowance for deferred tax assets (4,904,560 ) (7,931,607 ) Net deferred tax asset 0 0 |
Employee Incentive Schemes (Tab
Employee Incentive Schemes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Assumptions for Option Grants Issued | In accordance with ASC 718, the fair value of the option grants was estimated on the date of each grant using the Trinomial Lattice model. The assumptions for these grants were: Oct-17 Oct-17 Oct-17 Feb-17 Exercise Price (A$) 0.50 0.60 0.80 0.50 Share Price at Grant Date (A$) 0.38 0.38 0.38 0.39 Volatility 68 % 68 % 68 % 69 % Expected Life (years) 5 5 5 6 Risk Free Interest Rate 2.36 % 2.36 % 2.36 % 2.47 % Fair Value of Option (A$) 0.15 0.13 0.11 0.13 |
Stock Option Activity | Stock option activity during the current period is as follows: Number of shares Weighted average A$ Balance at December 31, 2017 22,003,215 0.63 Granted 0 0.00 Exercised (553,334 ) 0.00 Lapsed (6,295,997 ) 0.70 Balance at December 31, 2018 15,153,884 0.63 |
Stock Options Outstanding | The following table represents information relating to stock options outstanding under the plans as of December 31, 2018: Options Outstanding Options Exercise Price A$ Shares Weighted average $0.50 8,000 0 8,000 $0.00 178,334 0 178,334 $0.94 354,667 0 354,667 $1.72 560,000 1 560,000 $0.75 20,000 0 20,000 $0.73 12,000 1 12,000 $1.09 155,000 1 155,000 $0.00 50,000 1 50,000 $0.79 24,000 1 24,000 $0.71 30,000 2 30,000 $0.49 152,500 2 152,500 $0.00 80,000 2 80,000 $0.17 50,000 3 50,000 $0.23 185,000 3 185,000 $0.00 80,000 3 80,000 $0.45 224,166 4 224,166 $0.50 4,605,000 4 4,605,000 $0.33 140,667 5 97,671 $0.50 644,550 5 644,550 $0.50 1,600,000 4 0 $0.60 2,700,000 4 0 $0.80 3,300,000 4 0 15,153,884 7,510,888 |
Employee Stock Options Exercised and Number of Shares Issued | The table below sets forth the number of employee stock options exercised and the number of shares issued in the period from December 31, 2016. We issued these shares in reliance upon exemptions from registration under Regulation S under the Securities Act of 1933, as amended. Period Ending Number of Options Exercised and Weighted Proceeds 2017 111,666 A$ 0.01 766 2018 553,334 A$ 0.00 0 |
Unrecognized Compensation Expense Related to Unvested Share-Based Compensation Arrangements Expected to be Recognized | As of December 31, 2018, there was A$579,682 of unrecognized compensation expense related to unvested share-based compensation arrangements under the Employee Option Plan. This expense is expected to be recognized as follows: Fiscal Year A$ 2019 320,926 2020 258,756 579,682 |
Restricted Shares Issued | The table below sets forth the restricted shares issued by the Company since January 1, 2017: Number of Market Value of Issued (A$) December, 2018 191,636 45,993 |
Restricted Stock Awards Activity | Restricted stock awards activity during the current period is as follows: Number of shares Weighted average Balance at December 31, 2017 492,749 0.31 Granted 191,636 0.24 Release of restricted shares (373,139 ) 0.31 Balance at December 31, 2018 311,246 0.28 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments, All Other Investments [Abstract] | |
Financial Assets | Years Ended December 31, 2018 2017 A$ A$ Financial assets: Cash and cash equivalents 11,797,789 26,259,918 Accounts receivables 50,209,561 4,397,268 Total financial assets 62,007,350 30,657,186 Debt: Long term secured loan 0 19,029,076 Total debt 0 19,029,076 Net financial assets 62,007,350 11,628,110 |
Property, Plant and Equipment_2
Property, Plant and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, net | As of December, 31 2018 2017 A$ A$ Plant and equipment 18,028,590 26,176,290 Leasehold improvements 9,130,310 9,105,120 Capital work in process 1,943,032 1,943,032 29,101,932 37,224,442 Accumulated depreciation (23,475,544 ) (27,264,680 ) Property, plant & equipment, net 5,626,388 9,959,762 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued expenses consist of the following: As of December, 31 2018 2017 A$ A$ Legal, tax and accounting fees 716,937 683,091 Salary and related costs 306,162 104,515 Research and development materials 554,496 587,126 Other 119,049 97,960 1,696,644 1,472,692 |
Net Income_(Loss) per Share (Ta
Net Income/(Loss) per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Diluted Net Income/(Loss) per Share | Years Ended December 31, 2018 2017 Weighted average shares used as denominator in calculating: Basic net income/(loss) per share 176,732,183 176,417,431 Diluted net income/(loss) per share 177,152,938 176,417,431 |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Revenue Based on Location of Customers | Our total revenue as disclosed below is attributed to countries based on location of customer. Location has been determined generally based on contractual arrangements. Years Ended December 31, 2018 2017 A$ A$ Home country - Australia 490,962 294,717 Foreign countries - U.S.A. 1,428,350 1,131,772 - Germany 1,603,817 3,641,781 - Switzerland 66,084,950 20,057,644 - Canada 238,056 222,229 - Other 101,817 137,854 Total - foreign countries 69,456,990 25,191,280 Total income 69,947,952 25,485,997 % of total income derived from - LifeScan 94 % 79 % - Siemens 3 % 18 % - Other 2 % 3 % |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Future Maturities, Interest and Other Payments under Company's Long Term Secured Loan Pursuant to Credit Agreement | The Company repaid its borrowings in November 2018. December 31, 2018 December 31, 2017 US$ A$ US$ A$ 2018 0 1,956,563 2019 0 15,875,875 2020 0 0 Thereafter 0 0 Total minimum payments 0 17,832,438 Less amount representing interest and other fees 0 (2,832,438 ) Gross balance of long term debt 0 15,000,000 Less fair value of warrants recorded within loan (a) (815,655 ) (815,655 ) Plus interest accretion 815,655 658,334 Total carrying value 0 0 14,842,679 19,029,076 Less current portion 0 0 0 0 Total carrying value, non-current 0 0 14,842,679 19,029,076 For 2017, the carrying value of the borrowings approximated its fair value. The fair value was estimated by discounting future cash flows at the currently offered rates for borrowings of similar remaining maturities. (a) The warrants issued in December 2013 had a grant date fair value of US$815,655 and are included in equity. |
Restricted Cash (Tables)
Restricted Cash (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Cash and Cash Equivalents [Abstract] | |
Reconciliation of Cash and Cash Equivalent and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows. Years Ended December 31, 2018 2017 A$ A$ Cash and cash equivalents 11,797,789 26,259,918 Restricted cash - current assets 15,589 15,309 Restricted cash - non-current 320,000 3,220,000 12,133,378 29,495,227 |
Restricted Cash Maintained by the Company in the Form of Term Deposits | Years Ended December 31, 2018 2017 A$ A$ Collateral for facilities (a) - current assets 15,589 15,309 Collateral for facilities (b) - non-current 320,000 320,000 Financial covenant pursuant to the credit agreement (c) - current assets 0 2,900,000 335,589 3,235,309 (a) Represents bank guarantee of CDN$15,000 as security deposit on HRL’s credit card (b) Represents bank guarantee of A$250,000 for commercial lease of UBS’ premises and security deposit on Company’s credit cards of A$70,000 (c) Represents amounts pledged as collateral for financing arrangements as contractually required by the Lenders. This restriction lapsed upon the repayment of the term loan |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Minimum [Member] | |
Basis Of Presentation [Line Items] | |
Sufficient cash and cash equivalents to fund our operations | 12 months |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | Feb. 18, 2019AUD ($) | Feb. 18, 2019USD ($) | Dec. 31, 2018AUD ($)StripsPayments | Dec. 31, 2018USD ($)Payments | Dec. 31, 2017AUD ($) | Dec. 31, 2016Strips | Sep. 09, 2011AUD ($) | Sep. 09, 2011USD ($) |
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Minimum maturity period of highly liquid investments purchase | 3 months | 3 months | ||||||
Short-term investments maturity period, minimum | 3 months | 3 months | ||||||
Short-term investments maturity period, maximum | 12 months | 12 months | ||||||
Impairment of long-lived assets held-for-use | $ 2,574,709 | $ 0 | ||||||
Percentage of manufacturing initial payment | 40.00% | |||||||
Duration of payment of marketing support payment on achieving target sales | 2 years | 2 years | ||||||
Target strips to be sold for payment of marketing support payment | Strips | 1,000,000,000 | |||||||
Total amount of expected marketing support payments | $ 2,902,525 | $ 2,048,602 | ||||||
Number of strips sold | Strips | 1,000,000,000 | |||||||
Asset retirement obligation | 2,600,000 | 2,600,000 | ||||||
Total revenue | 69,456,914 | 25,191,280 | ||||||
Refundable tax offset research and development tax incentive income | 20,000,000 | |||||||
Non-refundable tax offset research and development tax incentive income | $ 20,000,000 | 20,000,000 | ||||||
Refundable tax offset percentage | 43.50% | 43.50% | ||||||
Non-refundable tax offset percentage | 38.50% | 38.50% | ||||||
Foreign currency transaction gains | $ 577,505 | 731,289 | ||||||
Commitments and contingencies | 0 | 0 | ||||||
Purchase commitments | $ 941,864 | $ 2,359,443 | ||||||
Employer contribution percentage | 9.50% | 9.50% | ||||||
Collaborative Arrangement [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Non-refundable payment | $ 2,961,245 | $ 3,000,000 | ||||||
Maximum number of payments entity may receive from Siemens | Payments | 7 | 7 | ||||||
Subsequent Event [Member] | Life Scan [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Total revenue | $ 44,635,704 | $ 31,503,880 | ||||||
Maximum [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Estimated useful life of machinery and equipment | 10 years | 10 years | ||||||
Maximum [Member] | RRSP [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Employer matching contribution percentage | 5.00% | 5.00% | ||||||
Maximum [Member] | DPSP [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Employer contribution percentage | 2.00% | 2.00% | ||||||
Minimum [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Estimated useful life of machinery and equipment | 3 years | 3 years | ||||||
Minimum [Member] | DPSP [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Employer contribution percentage | 1.00% | 1.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Inventory, Net (Detail) - AUD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||
Raw materials | $ 302,056 | $ 380,540 |
Work in progress | 442,410 | 253,483 |
Finished goods | 0 | 28,109 |
Inventory, Net, Total | $ 744,466 | $ 662,132 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Receivables (Detail) - AUD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||
Accounts receivable | $ 50,209,561 | $ 4,397,268 |
Allowance for doubtful debts | 0 | 0 |
Accounts Receivable, Net, Current, Total | $ 50,209,561 | $ 4,397,268 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Other Liabilities (Detail) - AUD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Current liabilities | ||
Marketing support payment | $ 2,902,525 | $ 2,626,413 |
Other current liabilities | $ 2,902,525 | $ 2,626,413 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Research and Development Expenses (Detail) - AUD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | ||
Research and development expenses | $ 11,578,246 | $ 10,828,879 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Effects of Allocated Tax to Each Component of Other Comprehensive Income/(loss) (Detail) - AUD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | ||
Foreign currency translation reserve, before-tax amount | $ (24,462) | $ (3,506) |
Foreign currency translation reserve, reclassification for gains realized in net income, before-tax amount | 0 | 0 |
Other comprehensive gain/loss, before- tax amount | (24,462) | (3,506) |
Foreign currency translation reserve, tax (expense)/ benefit | 0 | 0 |
Foreign currency translation reserve, reclassification for gains realized in net income, tax (expense)/ benefit | 0 | 0 |
Other comprehensive gain/loss, tax (expense)/ benefit | 0 | 0 |
Foreign currency translation reserve, net-of-tax amount | (24,462) | (3,506) |
Foreign currency translation reserve, Reclassification for gains realized in net income, net-of-tax amount | 0 | 0 |
Other comprehensive gain/(loss) | $ (24,462) | $ (3,506) |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2018AUD ($) | Nov. 30, 2017AUD ($) | Dec. 31, 2018AUD ($)m² | Dec. 31, 2017AUD ($) | |
Other Commitments [Line Items] | ||||
Bank guarantee in relation to a rental bond to secure the payments under the lease | $ 250,000 | |||
Successive period of leasing | 3 years | |||
Lease expire date | Mar. 31, 2022 | |||
Rent expense | $ 750,798 | $ 731,394 | ||
Hemostasis Reference Laboratory Inc [Member] | ||||
Other Commitments [Line Items] | ||||
Successive period of leasing | 5 years | |||
Lease expire date | Jan. 31, 2020 | |||
Operating lease area of office and laboratory facilities | m² | 482 | |||
Universal Biosensors Pty Ltd [Member] | ||||
Other Commitments [Line Items] | ||||
Government grants term | 3 years | |||
Government grants commencement date | Jan. 1, 2017 | |||
Government grants received | $ 89,500 | $ 271,318 | ||
Universal Biosensors Pty Ltd [Member] | Maximum [Member] | ||||
Other Commitments [Line Items] | ||||
Government grants receivable | $ 575,000 |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities - Future Minimum Lease Payments Under Non-cancelable Operating Leases (Detail) | Dec. 31, 2018AUD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Less than 1 year | $ 256,644 |
1 - 3 years | 38,657 |
3 - 5 years | 1,129 |
More than 5 years | 0 |
Total minimum lease payments | $ 296,430 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of (Benefit)/Provision for Income Taxes (Detail) - AUD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Profit/(loss) before income taxes | $ 41,916,920 | $ (764,717) |
Computed by applying income tax rate of home jurisidction | 12,575,076 | (229,415) |
Effect of tax rates in foreign jurisdictions | 13,316 | 30,589 |
Research and development | 4,253,289 | 3,986,640 |
Temporary timing differences: | ||
Share based payment | 95,564 | 84,750 |
Other | (61,115) | 135,846 |
Utilisation of carried forward losses | (3,298,121) | 0 |
Utilisation of tax credits | (13,046,757) | 0 |
Change in valuation allowance | (531,252) | (4,008,410) |
Global intangible low-taxed income (GILTI) tax | 4,352,564 | 0 |
Income tax expense/(benefit) | $ 4,352,564 | $ 0 |
Computed by applying income tax rate of home jurisidction, percentage rate | 30.00% | 30.00% |
Effect of tax rates in foreign jurisdictions, percentage rate | 0.00% | (4.00%) |
Research and development, percentage rate | 10.00% | (521.00%) |
Temporary timing differences: | ||
Share based payment, percentage rate | 0.00% | (11.00%) |
Other, percentage rate | 0.00% | (18.00%) |
Utilisation of carried forward losses | (8.00%) | 0.00% |
Utilisation of tax credits | (31.00%) | (0.00%) |
Change in valuation allowance, percentage rate | (1.00%) | 524.00% |
Global intangible low-taxed income (GILTI) tax | 10.00% | 0.00% |
Income tax expense/(benefit), percentage rate | 10.00% | 0.00% |
Income Taxes - Components of Ne
Income Taxes - Components of Net Income/(Loss) before Income Taxes (Detail) - AUD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Foreign | $ (44,386) | $ (596,189) |
Domestic (Australia) | 41,961,306 | (168,528) |
Net income/(loss) before tax | $ 41,916,920 | $ (764,717) |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Deferred Tax Assets (Detail) - AUD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Operating loss carry forwards | $ 0 | $ 3,491,300 |
Depreciation and amortization | 1,578,478 | 1,454,394 |
Asset retirement obligations | 780,000 | 780,000 |
Employee entitlements | 366,039 | 477,783 |
Accruals | 1,325,955 | 1,292,788 |
Decline in value of patents | 1,195,965 | 1,184,629 |
Unrealised exchange loss | (583,029) | (660,410) |
Other | 241,152 | (88,877) |
Total deferred tax assets | 4,904,560 | 7,931,607 |
Valuation allowance for deferred tax assets | (4,904,560) | (7,931,607) |
Net deferred tax asset | $ 0 | $ 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 12 Months Ended | ||||
Dec. 31, 2018AUD ($) | Dec. 31, 2017AUD ($) | Dec. 31, 2018CAD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017CAD ($) | |
Income Taxes [Line Items] | |||||
Accumulated tax losses available for carry forward against future earnings | $ 11,637,669 | ||||
Non-refundable R&D tax offset | $ 3,459,966 | $ 10,963,961 | |||
Effective tax rate | 30.00% | 30.00% | |||
Internal Revenue Service (IRS) [Member] | |||||
Income Taxes [Line Items] | |||||
Accumulated tax losses available for carry forward against future earnings | $ 1,011,321 | ||||
Effective tax rate | 21.00% | 34.00% | |||
Deferred tax benefit on new rate | |||||
Hemostasis Reference Laboratory Inc [Member] | Canada Revenue Agency [Member] | |||||
Income Taxes [Line Items] | |||||
Accumulated tax losses available for carry forward against future earnings | $ 709,191 | $ 676,899 |
Employee Incentive Schemes - Ad
Employee Incentive Schemes - Additional Information (Detail) - AUD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of common stock given to each option holder | 1 | |
Options granted | 0 | 10,229,500 |
Number of options exercisable | 7,510,888 | 11,880,702 |
Stock compensation expense/(income) recognized | $ 318,545 | $ 282,501 |
Restricted shares of common stock to employees | $ 1,000 | |
Period of non traded years of existing shares of common stock | 3 years | |
Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period of options granted | 3 years | |
Options granted | 0 | |
Unrecognized compensation expense related to unvested share-based compensation arrangements | $ 579,682 | |
Aggregate intrinsic value for all options outstanding | $ 0 | |
Employee Stock Option [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Term of options granted | 10 years |
Employee Incentive Schemes - As
Employee Incentive Schemes - Assumptions for Option Grants Issued (Detail) - $ / shares | 1 Months Ended | |
Oct. 31, 2017 | Feb. 28, 2017 | |
Oct-17 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price | $ 0.50 | |
Share Price at Grant Date | $ 0.38 | |
Volatility | 68.00% | |
Expected Life (years) | 5 years | |
Risk Free Interest Rate | 2.36% | |
Fair Value of Option | $ 0.15 | |
Oct-17 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price | 0.60 | |
Share Price at Grant Date | $ 0.38 | |
Volatility | 68.00% | |
Expected Life (years) | 5 years | |
Risk Free Interest Rate | 2.36% | |
Fair Value of Option | $ 0.13 | |
Oct-17 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price | 0.80 | |
Share Price at Grant Date | $ 0.38 | |
Volatility | 68.00% | |
Expected Life (years) | 5 years | |
Risk Free Interest Rate | 2.36% | |
Fair Value of Option | $ 0.11 | |
Feb-17 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price | $ 0.50 | |
Share Price at Grant Date | $ 0.39 | |
Volatility | 69.00% | |
Expected Life (years) | 6 years | |
Risk Free Interest Rate | 2.47% | |
Fair Value of Option | $ 0.13 |
Employee Incentive Schemes - St
Employee Incentive Schemes - Stock Option Activity (Detail) | 12 Months Ended | |||
Dec. 31, 2018$ / sharesshares | Dec. 31, 2018$ / sharesshares | Dec. 31, 2017$ / sharesshares | Dec. 31, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock Options, Number of shares, Granted | 0 | 0 | 10,229,500 | 10,229,500 |
Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock Options, Outstanding Number of shares, Beginning Balance | 22,003,215 | 22,003,215 | ||
Stock Options, Number of shares, Granted | 0 | 0 | ||
Stock Options, Number of shares, Exercised | (553,334) | (553,334) | (111,666) | (111,666) |
Stock Options, Number of shares, Lapsed | (6,295,997) | (6,295,997) | ||
Stock Options, Outstanding Number of shares, Ending Balance | 15,153,884 | 15,153,884 | 22,003,215 | 22,003,215 |
Stock Options, Weighted average issue price, Beginning Balance | $ / shares | $ 0.63 | |||
Stock Options, Weighted average issue price, Granted | $ / shares | 0 | |||
Stock Options, Weighted average issue price, Exercised | (per share) | 0 | $ 0 | $ 0.01 | |
Stock Options, Weighted average issue price, Lapsed | $ / shares | 0.70 | |||
Stock Options, Weighted average issue price, Ending Balance | $ / shares | $ 0.63 | $ 0.63 |
Employee Incentive Schemes - _2
Employee Incentive Schemes - Stock Options Outstanding (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options Exercisable Shares | 7,510,888 | 11,880,702 |
Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price | $ 0.63 | $ 0.63 |
Options Outstanding, Shares | 15,153,884 | 22,003,215 |
Exercise Price One [Member] | Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price | $ 0.50 | |
Options Outstanding, Shares | 8,000 | |
Options Outstanding, Weighted average remaining life in years | 0 years | |
Options Exercisable Shares | 8,000 | |
Exercise Price Two [Member] | Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price | $ 0 | |
Options Outstanding, Shares | 178,334 | |
Options Outstanding, Weighted average remaining life in years | 0 years | |
Options Exercisable Shares | 178,334 | |
Exercise Price Three [Member] | Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price | $ 0.94 | |
Options Outstanding, Shares | 354,667 | |
Options Outstanding, Weighted average remaining life in years | 0 years | |
Options Exercisable Shares | 354,667 | |
Exercise Price Four [Member] | Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price | $ 1.72 | |
Options Outstanding, Shares | 560,000 | |
Options Outstanding, Weighted average remaining life in years | 1 year | |
Options Exercisable Shares | 560,000 | |
Exercise Price Five [Member] | Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price | $ 0.75 | |
Options Outstanding, Shares | 20,000 | |
Options Outstanding, Weighted average remaining life in years | 0 years | |
Options Exercisable Shares | 20,000 | |
Exercise Price Six [Member] | Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price | $ 0.73 | |
Options Outstanding, Shares | 12,000 | |
Options Outstanding, Weighted average remaining life in years | 1 year | |
Options Exercisable Shares | 12,000 | |
Exercise Price Seven [Member] | Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price | $ 1.09 | |
Options Outstanding, Shares | 155,000 | |
Options Outstanding, Weighted average remaining life in years | 1 year | |
Options Exercisable Shares | 155,000 | |
Exercise Price Eight [Member] | Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price | $ 0 | |
Options Outstanding, Shares | 50,000 | |
Options Outstanding, Weighted average remaining life in years | 1 year | |
Options Exercisable Shares | 50,000 | |
Exercise Price Nine [Member] | Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price | $ 0.79 | |
Options Outstanding, Shares | 24,000 | |
Options Outstanding, Weighted average remaining life in years | 1 year | |
Options Exercisable Shares | 24,000 | |
Exercise Price Ten [Member] | Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price | $ 0.71 | |
Options Outstanding, Shares | 30,000 | |
Options Outstanding, Weighted average remaining life in years | 2 years | |
Options Exercisable Shares | 30,000 | |
Exercise Price Eleven [Member] | Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price | $ 0.49 | |
Options Outstanding, Shares | 152,500 | |
Options Outstanding, Weighted average remaining life in years | 2 years | |
Options Exercisable Shares | 152,500 | |
Exercise Price Twelve [Member] | Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price | $ 0 | |
Options Outstanding, Shares | 80,000 | |
Options Outstanding, Weighted average remaining life in years | 2 years | |
Options Exercisable Shares | 80,000 | |
Exercise Price Thirteen [Member] | Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price | $ 0.17 | |
Options Outstanding, Shares | 50,000 | |
Options Outstanding, Weighted average remaining life in years | 3 years | |
Options Exercisable Shares | 50,000 | |
Exercise Price Fourteen [Member] | Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price | $ 0.23 | |
Options Outstanding, Shares | 185,000 | |
Options Outstanding, Weighted average remaining life in years | 3 years | |
Options Exercisable Shares | 185,000 | |
Exercise Price Fifteen [Member] | Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price | $ 0 | |
Options Outstanding, Shares | 80,000 | |
Options Outstanding, Weighted average remaining life in years | 3 years | |
Options Exercisable Shares | 80,000 | |
Exercise Price Sixteen [Member] | Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price | $ 0.45 | |
Options Outstanding, Shares | 224,166 | |
Options Outstanding, Weighted average remaining life in years | 4 years | |
Options Exercisable Shares | 224,166 | |
Exercise Price Seventeen [Member] | Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price | $ 0.50 | |
Options Outstanding, Shares | 4,605,000 | |
Options Outstanding, Weighted average remaining life in years | 4 years | |
Options Exercisable Shares | 4,605,000 | |
Exercise Price Eighteen [Member] | Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price | $ 0.33 | |
Options Outstanding, Shares | 140,667 | |
Options Outstanding, Weighted average remaining life in years | 5 years | |
Options Exercisable Shares | 97,671 | |
Exercise Price Nineteen [Member] | Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price | $ 0.50 | |
Options Outstanding, Shares | 644,550 | |
Options Outstanding, Weighted average remaining life in years | 5 years | |
Options Exercisable Shares | 644,550 | |
Exercise Price Twenty [Member] | Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price | $ 0.50 | |
Options Outstanding, Shares | 1,600,000 | |
Options Outstanding, Weighted average remaining life in years | 4 years | |
Options Exercisable Shares | 0 | |
Exercise Price Twenty One [Member] | Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price | $ 0.60 | |
Options Outstanding, Shares | 2,700,000 | |
Options Outstanding, Weighted average remaining life in years | 4 years | |
Options Exercisable Shares | 0 | |
Exercise Price Twenty Two [Member] | Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price | $ 0.80 | |
Options Outstanding, Shares | 3,300,000 | |
Options Outstanding, Weighted average remaining life in years | 4 years | |
Options Exercisable Shares | 0 | |
Exercise Price Twenty Three [Member] | Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options Outstanding, Shares | 15,153,884 | |
Options Exercisable Shares | 7,510,888 |
Employee Incentive Schemes - Em
Employee Incentive Schemes - Employee Stock Options Exercised and Number of Shares Issued (Detail) | 12 Months Ended | |||
Dec. 31, 2018AUD ($)$ / sharesshares | Dec. 31, 2018$ / shares | Dec. 31, 2017AUD ($)shares | Dec. 31, 2017$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Proceeds Received | $ 0 | $ 766 | ||
Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of Options Exercised and Corresponding Number of Shares Issued | shares | 553,334 | 111,666 | ||
Weighted Average Exercise Price | (per share) | $ 0 | $ 0 | $ 0.01 | |
Proceeds Received | $ 0 | $ 766 |
Employee Incentive Schemes - Un
Employee Incentive Schemes - Unrecognized Compensation Expense Related to Unvested Share-Based Compensation Arrangements Expected to be Recognized (Detail) - Employee Stock Option [Member] | Dec. 31, 2018AUD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
2,019 | $ 320,926 |
2,020 | 258,756 |
Total | $ 579,682 |
Employee Incentive Schemes - Re
Employee Incentive Schemes - Restricted Shares Issued (Detail) | 1 Months Ended |
Dec. 31, 2018AUD ($)shares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Number of Restricted Shares Issued | shares | 191,636 |
Market Value of Restricted Shares Issued | $ | $ 45,993 |
Employee Incentive Schemes - _3
Employee Incentive Schemes - Restricted Stock Awards Activity (Detail) - Restricted Stock [Member] | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares, Beginning Balance | shares | 492,749 |
Number of shares, Granted | shares | 191,636 |
Number of shares, Release of restricted shares | shares | (373,139) |
Number of shares, Ending Balance | shares | 311,246 |
Weighted average issue price, Beginning Balance | $ / shares | $ 0.31 |
Weighted average issue price, Granted | $ / shares | 0.24 |
Weighted average issue price, Release of restricted shares | $ / shares | 0.31 |
Weighted average issue price, Ending Balance | $ / shares | $ 0.28 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - AUD ($) | 1 Months Ended | 12 Months Ended | |
Sep. 30, 2011 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||
Agreement of milestone payments | $ 69,456,914 | $ 25,191,280 | |
SpeeDx [Member] | |||
Related Party Transaction [Line Items] | |||
Agreement of milestone payments | $ 500,000 | ||
License agreement termination period | 7 years | ||
SpeeDx [Member] | Minimum [Member] | |||
Related Party Transaction [Line Items] | |||
Sales and licensing revenues payments | 5.00% | ||
SpeeDx [Member] | Maximum [Member] | |||
Related Party Transaction [Line Items] | |||
Sales and licensing revenues payments | 15.00% | ||
Viburnum Funds Pty Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Ownership shares held in Company which has one of our directors | 18.00% | ||
Expenditure reimbursed | $ 21,716 |
Financial Instruments - Financi
Financial Instruments - Financial Assets (Detail) - AUD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Financial assets: | ||
Cash and cash equivalents | $ 11,797,789 | $ 26,259,918 |
Accounts receivables | 50,209,561 | 4,397,268 |
Total financial assets | 62,007,350 | 30,657,186 |
Debt: | ||
Long term secured loan | 0 | 19,029,076 |
Total debt | 0 | 19,029,076 |
Net financial assets | $ 62,007,350 | $ 11,628,110 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2018AUD ($)Contracts | Dec. 31, 2017AUD ($)Contracts | |
Fair Value Disclosures [Abstract] | ||
Impairments recognized during the year | $ | $ 0 | $ 0 |
Outstanding contracts | Contracts | 0 | 0 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Property, Plant and Equipment Net (Detail) - AUD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 29,101,932 | $ 37,224,442 |
Accumulated depreciation | (23,475,544) | (27,264,680) |
Property, plant & equipment, net | 5,626,388 | 9,959,762 |
Plant and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 18,028,590 | 26,176,290 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 9,130,310 | 9,105,120 |
Accumulated depreciation | (8,993,225) | (8,453,505) |
Capital Work in Process [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 1,943,032 | $ 1,943,032 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Additional Information (Detail) - AUD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | ||
Accumulated amortization of capitalized leasehold improvements | $ 23,475,544 | $ 27,264,680 |
Government grant netted against property plant and equipment | 360,818 | 271,318 |
Depreciation expense | 2,113,454 | 2,589,493 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Accumulated amortization of capitalized leasehold improvements | $ 8,993,225 | $ 8,453,505 |
Accrued Expenses - Accrued Expe
Accrued Expenses - Accrued Expenses (Detail) - AUD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Legal, tax and accounting fees | $ 716,937 | $ 683,091 |
Salary and related costs | 306,162 | 104,515 |
Research and development materials | 554,496 | 587,126 |
Other | 119,049 | 97,960 |
Accrued expenses | $ 1,696,644 | $ 1,472,692 |
Stockholders' Equity - Common_2
Stockholders' Equity - Common Stock - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Vote entitled to holders of common stock | One vote per share |
Beneficial ownership for CHESS Depositary Interests ("CDIs") | One underlying share |
Net Income_(Loss) per Share - D
Net Income/(Loss) per Share - Diluted Net Income/(Loss) per Share (Detail) - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Weighted average shares used as denominator in calculating: | ||
Basic net income/(loss) per share | 176,732,183 | 176,417,431 |
Diluted net income/(loss) per share | 177,152,938 | 176,417,431 |
Net Income_(Loss) per Share - A
Net Income/(Loss) per Share - Additional Information (Detail) - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Number of anti-dilutive shares not included in the calculation of basic net income/(loss) per ordinary share | 420,755 | 0 |
Guarantees and Indemnificatio_2
Guarantees and Indemnifications - Additional Information (Detail) - AUD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Indemnities [Member] | ||
Commitments And Guarantee Obligations [Line Items] | ||
Indemnification liability | $ 0 | $ 0 |
Segments - Additional Informati
Segments - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2018SegmentAreas | |
Segment Reporting [Abstract] | |
Operating segments | Segment | 1 |
Number of geographical area of operation | Areas | 1 |
Segments - Revenue Based on Loc
Segments - Revenue Based on Location of Customers (Detail) - AUD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Total revenue | $ 69,456,914 | $ 25,191,280 |
Total income | 69,947,952 | 25,485,997 |
AUSTRALIA [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 490,962 | 294,717 |
UNITED STATES [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 1,428,350 | 1,131,772 |
GERMANY [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 1,603,817 | 3,641,781 |
SWITZERLAND [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 66,084,950 | 20,057,644 |
CANADA [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 238,056 | 222,229 |
Other Countries [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 101,817 | 137,854 |
Foreign Countries [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | $ 69,456,990 | $ 25,191,280 |
Sales Revenue, Net [Member] | Life Scan [Member] | ||
Segment Reporting Information [Line Items] | ||
Concentration risk percentage | 94.00% | 79.00% |
Sales Revenue, Net [Member] | Siemens [Member] | ||
Segment Reporting Information [Line Items] | ||
Concentration risk percentage | 3.00% | 18.00% |
Sales Revenue, Net [Member] | Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Concentration risk percentage | 2.00% | 3.00% |
Borrowings - Future Maturities,
Borrowings - Future Maturities, Interest and Other Payments under Company's Long Term Secured Loan Pursuant to Credit Agreement (Detail) | Dec. 31, 2018AUD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017AUD ($) | Dec. 31, 2017USD ($) |
Borrowings | ||||
2,018 | $ 0 | $ 1,956,563 | ||
2,019 | 0 | 15,875,875 | ||
2,020 | 0 | 0 | ||
Thereafter | 0 | 0 | ||
Total minimum payments | 0 | 17,832,438 | ||
Less amount representing interest and other fees | 0 | (2,832,438) | ||
Gross balance of long term debt | 0 | 15,000,000 | ||
Less fair value of warrants recorded within loan | (815,655) | (815,655) | ||
Plus interest accretion | 815,655 | 658,334 | ||
Total carrying value | $ 0 | 0 | $ 19,029,076 | 14,842,679 |
Less current portion | 0 | 0 | 0 | 0 |
Total carrying value, non-current portion | 0 | 0 | 19,029,076 | 14,842,679 |
Total carrying value | $ 0 | $ 0 | $ 19,029,076 | $ 14,842,679 |
Borrowings - Future Maturitie_2
Borrowings - Future Maturities, Interest and Other Payments under Company's Long Term Secured Loan Pursuant to Credit Agreement (Parenthetical) (Detail) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
Grant date fair value included in equity | $ 815,655 | $ 815,655 |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) $ / shares in Units, shares in Millions | Dec. 29, 2017USD ($) | Jan. 31, 2018USD ($) | Sep. 30, 2017AUD ($) | Dec. 31, 2018AUD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017AUD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016AUD ($) | Dec. 31, 2013USD ($) | Dec. 19, 2013USD ($)shares | Dec. 19, 2013$ / shares |
Debt Instrument [Line Items] | |||||||||||
Secured term loan, drawn amount | $ 0 | $ 15,000,000 | |||||||||
Borrowing costs | $ 256,410 | $ 0 | |||||||||
Number of common stock entitled by issuing warrants | shares | 4.5 | ||||||||||
Exercise price of warrants | $ / shares | $ 1 | ||||||||||
Percentage of premium over closing price of common stock | 117.00% | ||||||||||
Warrants exercisable period | 7 years | 7 years | |||||||||
Elantis Premium Funding Ltd [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest charged | 2.60% | ||||||||||
Total amount financed | $ 369,630 | ||||||||||
Repayment of financed amount | $ 369,630 | ||||||||||
Athyrium Credit Agreement [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Athyrium credit agreement, date | Dec. 19, 2013 | Dec. 19, 2013 | |||||||||
Secured term loan, amount | $ 25,000,000 | ||||||||||
Secured term loan, drawn amount | $ 15,000,000 | ||||||||||
Secured term loan, undrawn amount | $ 10,000,000 | ||||||||||
Line of credit facility expiration date | Jul. 1, 2019 | Jul. 1, 2019 | |||||||||
Interest charged | 10.50% | ||||||||||
Default interest rate under credit agreement | 13.00% | 13.00% | |||||||||
Minimum voluntary repayments | $ 2,500,000 | ||||||||||
Prepayment premium after second anniversary, percentage | 15.00% | 15.00% | |||||||||
Prepayment premium | $ 62,500 | ||||||||||
Number of common stock entitled by issuing warrants | shares | 4.5 | ||||||||||
Exercise price of warrants | $ / shares | $ 1 | ||||||||||
Percentage of premium over closing price of common stock | 117.00% | ||||||||||
Warrants exercisable period | 7 years | 7 years | |||||||||
Athyrium Credit Agreement [Member] | Amendment [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility expiration date | Jul. 1, 2019 | ||||||||||
Line of credit related fees | $ 200,000 | ||||||||||
Stock repurchase program, authorized amount | $ 2,000,000 | ||||||||||
Borrowing costs | $ 200,000 |
Warrants - Additional Informati
Warrants - Additional Information (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 19, 2013 | |
Other Liabilities Disclosure [Abstract] | ||
Number of common stock entitled by issuing warrants | 4,500,000 | |
Exercise price of warrants | $ 1 | |
Percentage of premium over closing price of common stock | 117.00% | |
Warrants exercisable period | 7 years | |
Warrants exercise expiration date | Dec. 19, 2020 | |
Warrants exercise in multiples of shares, minimum | 500,000 |
Restricted Cash - Reconciliatio
Restricted Cash - Reconciliation of Cash and Cash Equivalent and Restricted Cash (Detail) - AUD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Cash and Cash Equivalents [Abstract] | ||
Cash and cash equivalents | $ 11,797,789 | $ 26,259,918 |
Restricted cash - current assets | 15,589 | 15,309 |
Restricted cash - non-current assets | 320,000 | 3,220,000 |
Total | $ 12,133,378 | $ 29,495,227 |
Restricted Cash - Restricted Ca
Restricted Cash - Restricted Cash Maintained by the Company in the Form of Term Deposits (Detail) - AUD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash, current | $ 15,589 | $ 15,309 |
Restricted cash, noncurrent | 320,000 | 3,220,000 |
Total | 335,589 | 3,235,309 |
Collateral for Facilities [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash, current | 15,589 | 15,309 |
Restricted cash, noncurrent | 320,000 | 320,000 |
Financial Covenant Pursuant to the Credit Agreement [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash, current | $ 0 | $ 2,900,000 |
Restricted Cash - Restricted _2
Restricted Cash - Restricted Cash Maintained by the Company in the Form of Term Deposits (Parenthetical) (Detail) - Dec. 31, 2018 - Collateral for Facilities [Member] | AUD ($) | CAD ($) |
HRL Credit Card [Member] | Restricted Cash Current Asset [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Security deposit | $ 15,000 | |
Commercial Leases [Member] | Restricted Cash NonCurrent Asset [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Security deposit | $ 250,000 | |
Credit Card [Member] | Restricted Cash NonCurrent Asset [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Security deposit | $ 70,000 |
Restricted Cash - Additional In
Restricted Cash - Additional Information (Detail) - AUD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash and Cash Equivalents [Abstract] | ||
Interest earned on restricted cash | $ 62,037 | $ 73,615 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Detail) - SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset [Member] - AUD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Balance at Beginning of Period | $ 7,931,607 | $ 12,106,409 |
Additions Charged to Costs and Expenses | (16,876,129) | (4,008,410) |
Additions Charged to Other Accounts | 13,849,082 | (166,392) |
Deductions | 0 | 0 |
Balance at end of Period | $ 4,904,560 | $ 7,931,607 |