Full Press Release Details
Year ended 30 June 2018
| Name of entity: | Immuron Limited |
| ABN or equivalent company reference: | 80 063 114 045 |
| Current financial period: | 30 June 2018 |
| Corresponding financial period: | 30 June 2017 |
Results for announcement to the market
| $ | ||||||||||||||||
| Revenue for ordinary activities | Up | 32 | % | to | 1,842,909 | |||||||||||
| Loss after tax attributable to members | Down | 56 | % | to | 3,010,929 | |||||||||||
| Net loss after tax (from ordinary activities) for the period attributable to members | Down | 56 | % | to | 3,010,929 |
| Amount per security | Franked amount per security | ||||||||
| Interim dividend (per share) | - | - | |||||||
| Final dividend (per share) | - | - | |||||||
| Franking | - | - |
| 30 June 2018 Cents | 30 June 2017 Cents | ||||||||
| Net tangible assets (per share) | 5.91 | 5.06 |
Explanation of results
The reported after tax loss of $3,010,929 is after fully expensing
all of the Company's research and development expenditure and patenting costs of $2,257,224 incurred during the year.
The Company has engaged a specialised R&D Tax consultant
to review the research and development expenses of the Company for financial year 2018, to ensure the maximum rebate is received
under the Australian Government's R&D Tax Incentive program. It is anticipated that the Company will receive substantial
cash inflows following this review process.
The total operating revenue for the year was $1,842,909, which is an increase of 32%
from financial year 2017. Gross Profit increased 35% to $1,424,216 compared to 2017.
At 30 June 2018 the Company's cash position
was $4,727,430 (30 June 2017: $3,994,924). The Company had trade and other receivables of $1,683,305 (30 June 2017: $1,768,237).
This receivables amount includes future receivables from the Australian Government under the R&D Tax Incentive program mentioned
During the current financial year, the
Company entered into a short-term loan arrangement with Great Accommodation Pty Ltd to fund on going R&D expenditure, for an
amount of AUD $500,000 at an interest rate of 15% per annum and a AUD $15,000 establishment fee. The loan was repaid by the Company
on 12 February 2018.
As announced to the market on 14 March 2018, the Company secured AUD $5.1 million in funding through a private
placement with a large U.S.institutional investment fund. This capital raise was required to secure the future funding needs of
Immuron's other ongoing clinical programs, support marketing initiatives surrounding the Company's flagship product Travelan, which
already experienced significant sales growth through the first half of the financial year 2018, and provide ongoing working capital
The appendix 4E financial report follows,
with the further details to be included in the audited financial statements to be released by 28 September 2018.
Changes in controlled entities
For changes to controlled entities during
the year ended 30 June 2018 please refer to note 9.
| Other information required by Listing Rule 4.3A | |
| a. Details of individual and total dividends or distributions and dividend or distribution payments: | n/a |
| b. Details of any dividend or distribution reinvestment plans: | n/a |
| c. Details of associates and joint venture entities: | n/a |
| d. Other information | n/a |
The financial statements are currently in the process of being
audited. An audited financial statements along with the independent auditor report for the year end 30 June 2018 will provided
Preliminary Final Report
for the year ended 30 June 2018
| Directors | Dr. Roger Aston |
| Independent non-executive chairman | |
| Mr. Peter Anastasiou | |
| Executive vice chairman | |
| Mr. Daniel Pollock | |
| Independent non-executive director | |
| Mr. Stephen Anastasiou | |
| Independent non-executive director | |
| Mr. Richard J Berman (appointed 1 July 2018) | |
| Independent non-executive director | |
| Mr. Ravi Savariryan | |
| Independent non-executive director | |
| Secretary | Mr. Phillip Hains |
| Mr. Peter Vaughan (resigned July 01, 2018) | |
| Interim Chief Executive Officer | Dr. Jerry Kanellos |
| Registered Office | Level 3, 62 Lygon Street |
| Carlton VIC 3053 | |
| Australia | |
| Telephone: +61(0)3 9824 5254 | |
| Facsimile: +61(0)3 9822 7735 | |
| Principal Place of Business | Unit 10, 25 - 37 Chapman Street |
| Blackburn North VIC 3130 | |
| Australia | |
| Telephone: +61 (0)3 9824 5254 | |
| Facsimile: +61 (0)3 9822 7735 | |
| Share Registry - Australia | Security Transfer Registrars Pty Ltd |
| 770 Canning Highway | |
| Applecross WA 6153 | |
| Australia | |
| Telephone: +61 (0)8 9315 2333 | |
| Facsimile: +61 (0)8 9315 2233 | |
| Share registry - United States | Bank of New York |
| 225 Liberty Street | |
| New York, NY 102286 | |
| United States of America | |
| Telephone: +1 212 495 1784 | |
| Auditors | Grant Thornton Audit Pty Ltd |
| Collins Square, Tower 1 | |
| 727 Collins Street | |
| Melbourne VIC 3008 | |
| Australia | |
| Telephone: +61 3 8320 2222 | |
| Solicitors - Australia | Francis Abourizk Lightowlers (FAL) |
| Level 16 | |
| 356 Collins Street | |
| Melbourne VIC 3000 | |
| Australia | |
| Telephone: +61 (0)3 9642 2252 | |
| Solicitors - United States | Carter Ledyard and Milburn LLP |
| 2 Wall Street | |
| New York NY 10005 | |
| United States of America | |
| Telephone: +1 212 238 8605 |
| Bankers | National Australia Bank (NAB) |
| 330 Collins Street | |
| Melbourne VIC 3000 | |
| Australia | |
| Securities exchange listings | Australian Securities Exchange (Code: IMC) |
| NASDAQ Exchange (Code: IMRN) | |
| Websites | www.Immuron.com |
| www.travelan.com.au |
Consolidated statement of profit or loss and other comprehensive income
For the year ended 30 June 2018
| Consolidated entity | ||||||||||||
| Notes | 2018 $ | 2017 $ | ||||||||||
| Revenue | ||||||||||||
| Sales of good | 2 | 1,842,909 | 1,396,197 | |||||||||
| Total operating revenue | 1,842,909 | 1,396,197 | ||||||||||
| Cost of goods sold | (418,693 | ) | (337,546 | ) | ||||||||
| Gross profit | 1,424,216 | 1,058,651 | ||||||||||
| Direct Selling Costs | ||||||||||||
| Sales and marketing costs | (282,241 | ) | (407,751 | ) | ||||||||
| Freight costs | (169,458 | ) | (135,377 | ) | ||||||||
| Total gross profit less direct selling costs | 972,517 | 515,523 | ||||||||||
| Other income | 2 | 1,850,401 | 1,614,373 | |||||||||
| Expenses | ||||||||||||
| Consulting, employee and director | 3 | (1,384,298 | ) | (1,689,521 | ) | |||||||
| Other corporate administration | 3 | (1,336,516 | ) | (1,381,809 | ) | |||||||
| Depreciation | (5,047 | ) | (4,922 | ) | ||||||||
| Finance fee costs | (18,857 | ) | (24,483 | ) | ||||||||
| Impairment of inventory | (163,600 | ) | (136,494 | ) | ||||||||
| Marketing and promotion | (370,699 | ) | (789,608 | ) | ||||||||
| Research and development | (2,257,224 | ) | (4,630,674 | ) | ||||||||
| Travel and entertainment expenses | (297,606 | ) | (276,539 | ) | ||||||||
| Loss before income tax | (3,010,929 | ) | (6,804,154 | ) | ||||||||
| Income tax expense | - | - | ||||||||||
| Loss for the period | (3,010,929 | ) | (6,804,154 | ) | ||||||||
| Other comprehensive income for the period, net of tax | ||||||||||||
| Exchange differences on translation of foreign operations | (79,599 | ) | 40,017 | |||||||||
| Total comprehensive loss for the period | (79,599 | ) | 40,017 | |||||||||
| Total comprehensive income for the period is attributable to: | ||||||||||||
| Owners of Immuron Limited | (3,090,528 | ) | (6,764,137 | ) | ||||||||
| Cents | Cents | |||||||||||
| Earnings per share for profit attributable to the ordinary equity holders of the Company: | ||||||||||||
| Basic loss per share | 8 | (2.3 | ) | (6.4 | ) | |||||||
| Diluted loss per share | 8 | (2.3 | ) | (6.4 | ) |
The above consolidated statement of profit or loss and other
comprehensive income should be read in conjunction with the accompanying notes.
Consolidated statement of financial position
| Consolidated entity | ||||||||||||
| Notes | 2018 $ | 2017 $ | ||||||||||
| ASSETS | ||||||||||||
| Current assets | ||||||||||||
| Cash and cash equivalents | 4,727,430 | 3,994,924 | ||||||||||
| Trade and other receivables | 1,683,305 | 1,768,237 | ||||||||||
| Inventories | 5 | 497,902 | 2,336,127 | |||||||||
| Other current assets | 141,800 | 168,366 | ||||||||||
| Total current assets | 7,050,437 | 8,267,654 | ||||||||||
| Non-current assets | ||||||||||||
| Plant and equipment | 20,384 | 18,837 | ||||||||||
| Inventories | 5 | 2,171,867 | - | |||||||||
| Total non-current assets | 2,192,251 | 18,837 | ||||||||||
| Total assets | 9,242,688 | 8,286,491 | ||||||||||
| LIABILITIES | ||||||||||||
| Current liabilities | ||||||||||||
| Trade and other payables | 689,326 | 1,290,389 | ||||||||||
| Borrowings | - | 139,864 | ||||||||||
| Employee benefit obligations | 114,012 | 36,173 | ||||||||||
| Other financial liabilities | - | 226,000 | ||||||||||
| Deferred revenue | - | 19,139 | ||||||||||
| Total current liabilities | 803,338 | 1,711,565 | ||||||||||
| Total liabilities | 803,338 | 1,711,565 | ||||||||||
| Net assets | 8,439,350 | 6,574,926 | ||||||||||
| EQUITY | ||||||||||||
| Issued capital | 7 | (a) | 58,372,043 | 53,632,995 | ||||||||
| Reserves | 7 | (b) | 2,606,722 | 2,470,417 | ||||||||
| Accumulated losses | (52,539,415 | ) | (49,528,486 | ) | ||||||||
| Total equity | 8,439,350 | 6,574,926 |
The above consolidated statement of financial position should
be read in conjunction with the accompanying notes.
Consolidated statement of changes in equity
For the year ended 30 June 2018
| Attributable to owners of Immuron Limited | ||||||||||||||||||||
| Issued capital | Reserves | Accumulated losses | Total | |||||||||||||||||
| Consolidated entity | Notes | $ | $ | $ | $ | |||||||||||||||
| Balance at 1 July 2016 | 45,633,354 | 2,128,566 | (42,821,357 | ) | 4,940,563 | |||||||||||||||
| Loss for the period | - | - | (6,804,154 | ) | (6,804,154 | ) | ||||||||||||||
| Other comprehensive income | - | 40,017 | - | 40,017 | ||||||||||||||||
| Total comprehensive (loss) income for the period | - | 40,017 | (6,804,154 | ) | (6,764,137 | ) | ||||||||||||||
| Transactions with owners in their capacity as owners: | ||||||||||||||||||||
| Contributions of equity, net of transaction costs | 7 | (a) | 7,927,766 | - | - | 7,927,766 | ||||||||||||||
| Options and warrants issued/expensed | 7 | (b) | - | 470,734 | - | 470,734 | ||||||||||||||
| Lapse or exercise of share options | 7 | (b) | 71,875 | (168,900 | ) | 97,025 | - | |||||||||||||
| 7,999,641 | 301,834 | 97,025 | 8,398,500 | |||||||||||||||||
| Balance at 30 June 2017 | 53,632,995 | 2,470,417 | (49,528,486 | ) | 6,574,926 | |||||||||||||||
| Balance at 1 July 2017 | 53,632,995 | 2,470,417 | (49,528,486 | ) | 6,574,926 | |||||||||||||||
| Loss for the period | - | - | (3,010,929 | ) | (3,010,929 | ) | ||||||||||||||
| Other comprehensive income | - | (79,599 | ) | - | (79,599 | ) | ||||||||||||||
| Total comprehensive (loss) income for the period | - | (79,599 | ) | (3,010,929 | ) | (3,090,528 | ) | |||||||||||||
| Transactions with owners in their capacity as owners: | ||||||||||||||||||||
| Contributions of equity, net of transaction costs | 7 | (a) | 4,739,048 | - | - | 4,739,048 | ||||||||||||||
| Options issued/expensed | 7 | (b) | - | 215,904 | - | 215,904 | ||||||||||||||
| 4,739,048 | 215,904 | - | 4,954,952 | |||||||||||||||||
| Balance at 30 June 2018 | 58,372,043 | 2,606,722 | (52,539,415 | ) | 8,439,350 |
The above consolidated statement of changes in equity should
be read in conjunction with the accompanying notes.
Consolidated statement of cash flows
For the year ended 30 June 2018
| Consolidated entity | ||||||||||||
| 2018 | 2017 | |||||||||||
| Notes | $ | $ | ||||||||||
| Cash flows from operating activities | ||||||||||||
| Receipts from customers | 1,601,619 | 1,413,676 | ||||||||||
| Payments to suppliers and employees | (7,262,348 | ) | (9,971,142 | ) | ||||||||
| Interest received | 1,278 | 8,386 | ||||||||||
| Other - R&D tax concession refund and other government grants | 2,156,206 | 1,615,043 | ||||||||||
| Interest and other costs of finance paid | (24,199 | ) | (97,051 | ) | ||||||||
| Net cash used in operating activities | (3,527,444 | ) | (7,031,088 | ) | ||||||||
| Cash flows from investing activities | ||||||||||||
| Payments for property, plant and equipment | (6,594 | ) | (5,696 | ) | ||||||||
| Net cash used from investing activities | (6,594 | ) | (5,696 | ) | ||||||||
| Cash flows from financing activities | ||||||||||||
| Proceeds from issues of shares and other equity securities | 7 | (a) | 5,472,200 | 12,525,067 | ||||||||
| Proceeds from borrowings | 500,000 | 500,000 | ||||||||||
| Repayment of borrowings | (865,864 | ) | (2,191,593 | ) | ||||||||
| Capital raising cost | 7 | (a) | (733,152 | ) | (2,132,422 | ) | ||||||
| Net cash provided from financing activities | 4,373,184 | 8,701,052 | ||||||||||
| Net increase in cash and cash equivalents | 839,146 | 1,664,268 | ||||||||||
| Cash and cash equivalents at the beginning of the financial year | 3,994,924 | 2,290,639 | ||||||||||
| Effects of exchange rate changes on cash and cash equivalents | (106,640 | ) | 40,017 | |||||||||
| Cash and cash equivalents at end of period | 4,727,430 | 3,994,924 |
The above consolidated statement of cash flows should be
read in conjunction with the accompanying notes.
Notes to the consolidated financial statements
1 Summary of significant accounting policies
(a) Basis of preparation
This Preliminary Financial Report covers
the entity of Immuron Limited and its controlled entities. The preliminary general purpose financial report for the period ended
30 June 2018 has been prepared in accordance with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations
The Group's Preliminary Financial
Report does not include all notes of the type normally included in an annual financial report and therefore cannot be expected
to provide as full an understanding of the financial performance, financial position and financing and investing activities of
the entity as the full financial report.
(b) Accounting policies
All accounting policies adopted are consistent with the most
recent Annual Financial Report for the year ended 30 June 2017. The consolidated entity has adopted all of the new, revised or
amending Accounting Standards and Interpretation issued by the Australian Accounting Standards Board ( AASB') that
are mandatory for the current reporting period. The adoption of these Accounting Standards and Interpretations did not have any
significant impact on the financial performance or position of the consolidated entity.
There are no other standards that are not
yet effective and that would be expected to have a material impact on the entity in the current or future reporting periods and
on foreseeable future transactions.
Notes to the consolidated financial statements
The Company derives the following types of revenue:
| Consolidated entity | ||||||||
| 2018 | 2017 | |||||||
| $ | $ | |||||||
| Revenue from operating activities | ||||||||
| Sales of good | 2,000,832 | 1,565,319 | ||||||
| Less: discounts and rebates | (157,923 | ) | (169,122 | ) | ||||
| Total revenue from operating activities | 1,842,909 | 1,396,197 | ||||||
| Other income | ||||||||
| Interest income | 1,238 | 8,386 | ||||||
| R&D tax concession refund | 1,849,123 | 1,575,315 | ||||||
| Other income | 40 | 30,672 | ||||||
| Total other income | 1,850,401 | 1,614,373 |
| Consolidated entity | ||||||||
| 2018 | 2017 | |||||||
| $ | $ | |||||||
| Consulting, employee and director | ||||||||
| Wages and salaries expenses | 885,197 | 905,819 | ||||||
| Superannuation and other employee related expenses | 153,795 | 39,664 | ||||||
| Director expenses | 285,331 | 221,373 | ||||||
| Share- based payments | 59,975 | 522,665 | ||||||
| Total consulting, employee and director expenses | 1,384,298 | 1,689,521 | ||||||
| Other corporate administration | ||||||||
| Audit and accounting fees | 222,973 | 146,007 | ||||||
| Legal fees | 11,513 | - | ||||||
| Insurances | 277,888 | 150,502 | ||||||
| Foreign exchange (gain) / losses | (258,767 | ) | 238,985 | |||||
| Corporate administration costs | 1,082,909 | 846,315 | ||||||
| Total corporate administration expenses | 1,336,516 | 1,381,809 |
Notes to the consolidated financial statements
(a) Description of segments and principal activities
The entity has identified its operating segments based on the
internal reports that are reviewed and used by the executive management team in assessing performance and determining the allocation
The executive management team considers the business from both a product and a geographic perspective and has identified
two reportable segments.
Research and Development (R&D): Income and expenses directly attributable to the Company's
research and development projects performed in Australia, Israel and United States.
HyperImmune Products: Income and expenses
directly attributable to Travelan activities which occur in Australia, New Zealand, US and Canada. In 2018, the Company earned
62%, 1% and 37% of its revenues from customers located in Australia, Canada and US, respectively. In 2017, the Company earned 64%,
10% and 26% of its revenues from customers located in Australia, Canada and US, respectively.
| Research & | HyperImmune | Unallocated | ||||||||||||||
| Consolidated entity | Development | Products | Corporate | Total | ||||||||||||
| 2018 | ||||||||||||||||
| $ | $ | $ | $ | |||||||||||||
| Segment revenue & other income | ||||||||||||||||
| Revenue from external customers | - | 1,842,909 | - | 1,842,909 | ||||||||||||
| R&D tax concession refund | 1,849,123 | - | 1,238 | 1,850,361 | ||||||||||||
| Other income | - | 40 | - | 40 | ||||||||||||
| Total Segment revenue & other income | 1,849,123 | 1,842,949 | 1,238 | 3,693,310 | ||||||||||||
| Segment expenses | ||||||||||||||||
| Depreciation | - | - | (5,047 | ) | (5,047 | ) | ||||||||||
| Finance fee costs | - | - | (18,857 | ) | (18,857 | ) | ||||||||||
| Share-based payments | - | - | (59,975 | ) | (59,975 | ) | ||||||||||
| Other operating expenses | (2,257,224 | ) | (832,661 | ) | (3,530,475 | ) | (6,620,360 | ) | ||||||||
| Total segment expenses | (2,257,224 | ) | (832,661 | ) | (3,614,354 | ) | (6,704,239 | ) | ||||||||
| Income tax expense | - | - | - | - | ||||||||||||
| (Loss)/profit for the year | (408,101 | ) | 1,010,288 | (3,613,116 | ) | (3,010,929 | ) | |||||||||
| Assets | ||||||||||||||||
| Segment assets | 1,191,029 | 3,162,045 | 4,889,614 | 9,242,688 | ||||||||||||
| Total assets | 1,191,029 | 3,162,045 | 4,889,614 | 9,242,688 | ||||||||||||
| Liabilities | ||||||||||||||||
| Segment liabilities | (174,434 | ) | (26,009 | ) | (602,895 | ) | (803,338 | ) | ||||||||
| Total liabilities | (174,434 | ) | (26,009 | ) | (602,895 | ) | (803,338 | ) |
Notes to the consolidated financial statements
(b) Segment results (continued)
| Research & | HyperImmune | Unallocated | ||||||||||||||
| Consolidated entity | Development | Products | Corporate | Total | ||||||||||||
| 2017 | ||||||||||||||||
| $ | $ | $ | $ | |||||||||||||
| Segment revenue & other income | ||||||||||||||||
| Revenue from external customers | - | 1,396,197 | - | 1,396,197 | ||||||||||||
| R&D tax concession refund | 1,575,315 | - | - | 1,575,315 | ||||||||||||
| Interest income | - | - | 8,386 | 8,386 | ||||||||||||
| Other income | 25,000 | 5,672 | - | 30,672 | ||||||||||||
| Total Segment revenue & other income | 1,600,315 | 1,401,869 | 8,386 | 3,010,570 | ||||||||||||
| Segment expenses | ||||||||||||||||
| Depreciation | - | - | (4,922 | ) | (4,922 | ) | ||||||||||
| Finance fee costs | - | - | (24,483 | ) | (24,483 | ) | ||||||||||
| Share-based payments | (188,481 | ) | - | (334,184 | ) | (522,665 | ) | |||||||||
| Other operating expenses | (4,805,874 | ) | (1,017,169 | ) | (3,439,611 | ) | (9,262,654 | ) | ||||||||
| Total segment expenses | (4,994,355 | ) | (1,017,169 | ) | (3,803,200 | ) | (9,814,724 | ) | ||||||||
| Income tax expense | - | - | - | - | ||||||||||||
| (Loss)/profit for the year | (3,394,040 | ) | 384,700 | (3,794,814 | ) | (6,804,154 | ) | |||||||||
| Assets | ||||||||||||||||
| Segment assets | 1,498,112 | 2,585,755 | 4,202,624 | 8,286,491 | ||||||||||||
| Total assets | 1,498,112 | 2,585,755 | 4,202,624 | 8,286,491 | ||||||||||||
| Liabilities | ||||||||||||||||
| Segment liabilities | (514,326 | ) | (330,218 | ) | (867,021 | ) | (1,711,565 | ) | ||||||||
| Total liabilities | (514,326 | ) | (330,218 | ) | (867,021 | ) | (1,711,565 | ) |
Notes to the consolidated financial statements
| Consolidated entity | ||||||||
| 2018 | 2017 | |||||||
| $ | $ | |||||||
| Raw materials - Colostrum | 198,585 | 1,793,882 | ||||||
| Work in progress | 33,625 | 48,425 | ||||||
| Finished goods - Travelan and Protectyn | 265,692 | 357,478 | ||||||
| Total of inventories classified under current asset | 497,902 | 2,199,785 |
| Consolidated entity | ||||||||
| 2018 | 2017 | |||||||
| $ | $ | |||||||
| Raw materials - Colostrum | 2,171,867 | - | ||||||
| Total of inventories classified under non-current asset | 2,171,867 | - |
There has been no change in contingent liabilities and assets