farmaforce limited fy 2016 final(v7 clean) · 30.06.2016 · farmaforce limited a.c.n. 167 748 843...

FarmaForce Limited A.C.N. 167 748 843

FarmaForce Limited ACN 167 748 843

Appendix 4E and Full Year

Financial Results For the Year

Ended 30 June 2016


ASXAppendix4EProvided below are the results for announcement to the market in accordance with Australian SecuritiesExchange(‘ASX’)ListingRule4.3AandAppendix4EforFarmaForceLimited(‘FarmaForceorthe‘Company’)fortheyearended30June2016andthepreviouscorrespondingperiod30June2015.

RESULTSFORANNOUNCEMENTTOTHEMARKET

Consolidatedresults

30June2016$000

30June2015$000

MovementUp/down Movement%

Revenue 1,951 353 up 453%

NetProfit(loss)fromordinaryactivitiesaftertaxattributabletomembers

(3,799) (2,051) down 85%

Netprofit(loss)fortheperiodattributabletomembers

(3,799) (2,051) down 85%

ForcommentaryontheresultsincludingchangesinstateofaffairsandlikelydevelopmentsoftheCompany,seecommentssetoutintheDirectors’report(refertopage6)andtheOperatingandFinancialReviewsection(refertopage15)oftheAnnualFinancialReport.

Dividends

Nodividends have beenpaid or declared since the endof the previous financial year, nor do the directorsrecommendthedeclarationofadividend.

Dividends(distributions) Frankedamountpersecurity Amountpersecurity

Interimdividend Nil Nil

Finaldividend Nil Nil

OTHERINFORMATION

Statementofcomprehensiveincome

For a statement of comprehensive income together with notes to the statement, refer to page 15 of theAnnualFinancialReportfordetails.

Statementoffinancialposition

For a statement of financial position togetherwith notes to the statement, refer to page 16 of theAnnualFinancialReportfordetails.

Statementofcashflows

Forastatementofcashflowstogetherwithnotestothestatement,refertopage18oftheAnnualFinancialReportfordetails.

Statementofchangesinequity

Forastatementofchangesinequity,refertopage17oftheAnnualFinancialReportfordetails.


Nettangibleassets

Nettangibleassetspersecuritywiththecomparativefigureforthepreviouscorrespondingperiod:

Currentperiod: 1.44cents

Previouscorrespondingperiod: n/a

Controlgainedoverentitieshavingmaterialeffect

FarmaForceLimitedhasneithergainedcontrolnorlostcontroloveranentityduringtheperiodwhichhashadamaterialeffect.

Detailsofassociates

FordetailsoftheCompany’sassociates,refertopage32oftheAnnualFinancialReport.

OtherSignificantinformation

ApartfromtheinformationcontainedintheattachedAnnualFinancialReportandelsewhereinthisAppendix4E, there isnoother significant informationneededbyan investor tomakean informedassessmentof theCompany’sfinancialperformanceandfinancialpositionasatthereportingdate.

AuditedAccounts

TheaccountshavebeenauditedbyFortunityAssuranceandarenotsubjecttodisputeorqualification.

1

Annual Report2016

FARMAFORCE LIMITED ACN 167 748 843


FarmaForce Limited 2016 Annual Report Contents For the Year Ended 30 June 2016 Page

Chairman’sReport.............................................................................................................1

Directors’BusinessReview................................................................................................2

CorporateGovernanceStatement.....................................................................................5

Directors'Report...............................................................................................................6

Auditor’sIndependenceDeclaration...............................................................................14

StatementofProfitorLossandOtherComprehensiveIncome........................................15

StatementofFinancialPosition.......................................................................................16

StatementofChangesinEquity.......................................................................................17

StatementofCashflows..................................................................................................18

NotestotheFinancialStatements...................................................................................19

Directors’Declaration.....................................................................................................35

IndependentAuditReporttothemembersofFarmaForceLimited.................................36

ASXAdditionalInformation.............................................................................................38


Page 1

Chairman’sReport

Onbehalfoftheboardofdirectors,wearepleasedtopresenttheoperationalandfinancialreviewforFarmaForceLimitedfortheyearending30June2016.

AfterlistingontheASXonthe27October2015,FarmaForcehassuccessfullylaidthegroundworkrequiredtoimplementthecompany’sstrategy.ThisapproachseestheCompanybecomingafullyintegratedstrategicsalessolutionpartnertobothmulti-nationalandlocalpharmaceuticalcompaniesintheAustralianmarket.Indoingsotheorganisationhasachievedthefollowingobjectives:

- Establishmentofsalesteamstoserviceourexistingclientcontracts

- ObtainedISOAccreditation

- Positioningtheorganisationfororganicgrowthopportunities

- Recruitmentandretentionofkeypeopleinordertoeffectivelytranslateourvisionintorealityand

- Earningareputationasahighqualityserviceprovidertothepharmaceuticalindustryinashortspaceoftime.

TheIPOraised$5.077Mincapitalandwiththefundsinvestedininfrastructuretofurtherbuildthecompany,itstechnologyandimplementthebusinessstrategy.Thisprovidedanoverallstrengtheningofworkingcapitaltofundfuturegrowthopportunities.

Revenueforthe12monthstoJune2016was$1.951Mup453percentfrom$0.353Mforthecomparativeperiodlastyear.Thisincreasefromtheprioryearisaresultofthecontinuedimplementationofourbusinessdevelopmentstrategies.Thepre-taxlossfortheperiodwas$3.799Magainstapre-taxlossof$2.051Minthepriorcorrespondingperiod,andcashflowfromoperatingactivitiesbeing($3.588M)and($1.912M)respectively.Theexpenditureinthecurrentyearrepresentsessentialexpendituretomeetthebusinessobjectivesasstatedintheprospectus.

Netassetsasof30June2016were$1.840Mcomparedto($1.666M)at30June2015andcashbalanceswere$1.541Mcomparedwith$1.206Matthesametimelastyear.

Ourleadershipteam,ledbyanaspirationalandcommittedgroupofexecutivemanagementandboardmembers,iscommittedtobuildingtheFarmaForcebusinessandconsistentlyaddingvaluetoourclients,shareholdersandemployees.

GeorgeElias

Chairman

Date:29thAugust2016


Page 2

Directors’BusinessReview

TheFarmaForcestorybeganinearly2014withasingleobjective;tobecomethenumberonepartnerofchoicetothepharmaceuticalindustryforoutsourcedsalessolutions.Toachievethis,wehadtoensurewecoulddeliverexcellenceandinnovativesolutionsforthedurationofthebusinesspartnershipwitheachclient.

Therefore,whenwedevelopedourbusinessstrategy,itwascriticalthatourvaluepropositionshouldnotbeaboutprovidingcheaperlabourtothepharmaceuticalindustry,butratheraboutdeliveringamorevaluable,costeffectiveandlongtermstrategicsolution.It’sessentialtothelongtermsuccessofFarmaForcethatweforgecapability-driven,strategicpartnershipsratherthansimply“spillover”,capacitydriven,shorttermtransactions.

Wewereconfidentthen,aswearenow,thattheFarmaForcevaluepropositionwouldresonatewiththeindustryexecutives,asitdid.

Pharmaindustrychallenges

Duringthelastfewyears,thepharmaceuticalindustryhasundergonesignificanttransformationandcontinuestobeinastateoffluxeventoday.Thisisduetomanypatentprotectedpharmaceuticalslosingtheirsalesexclusivityperiodresultinginfierce,pricedriven,competitionwiththegenericmanufacturers.Thishastranslatedtosignificantrevenueandprofitabilitylossfortheinnovativepharmaindustry.

TheFarmaForcesolution

FarmaForceoffersacredibleandviablesolutiontoaddressthischallengeonaconsultativebasiswithFarmaForceactingasacomplementtotheinternalteam.Importantly,thesesalescanbeachievedonbehalfofourclients,withouttheclientneedingtoincreaseinternalresourcingand/orinfrastructure.

PostFarmaForcelistingontheASXinOctoberlastyear,theteamembarkedonimplementationofthecompany’sstrategytobecomeanintegratedstrategicpartnertoboththeinternationalandlocalpharmaceuticalcompaniesintheAustralianmarketplace.

FarmaForcebusinessdevelopmentprocess

TheFarmaForcebusinessdevelopmentstrategyisdeliberateandisbuiltonthebeliefofinsightbasedbusinessdevelopmentpractice.OurBusinessDevelopmentManagersleadtheprocesswithinformedideasthatwillmakecustomersawareofunknownneeds.Todothis,weaskourselves-isthecustomerfacinganemergingneed?Oraretheyinastateoforganisationalflux?Regardlessofwhetherit’sduetoexternalpressures,regulatoryreforms,financialconditionsorinternalpressures–thecustomerisre-examiningthestatusquo,theyarelookingforinsightsandarereceptivetocreativeanddisruptiveideasbeingbroughttothetable.TheFarmaForcebusinessdevelopmentteamengagescustomersatanearlystage;weseekoutaverydifferentsetofstakeholders,preferringscepticalchangeagentsoverfriendlyinformants.Wewillthenworkwiththesechangeagents,educatingthemonhowtobuy,ratherthangrillthemabouttheircompany’spurchasingprocess.Weleadwithwell-informedinsightsleadingthecustomertoaninnovativesolutionasopposedtosellingaquickfix.

InmostofourpartnershipswerealisetheinitialprojectisusuallyapilotprojectwheretheclientneedstobuildtrustandconfidenceintheFarmaForceteam.Thebusinessdevelopmentcyclewithinthepharmaceuticalindustryisquiteprotracted;itisnotunusualforapotentialdealtotakeuptoninemonthstoconvertintoacontractenablingtheinfielddeploymentoftheFarmaForceteam.Hence,potentialbusinessdealsthatmaycurrentlybeunderdiscussionwillpotentiallyconvertintocontractsinthenextninetotwelvemonths.Whenconsideringinvoicingcycletimeframe,another90daysareaccrued.Soactually,todays’potentialbusinessdealsmaytranslateintorevenuein12to15months.Typically,thisexplainstheapparentdisparitybetweenOPEXandrevenue.


Page 3

FarmaForceSalesForceEffectiveness(SFE)

FarmaForcehasbeenveryconfidentaboutbothitsabilityandcapabilitytodeliveronitsvaluepropositionandhasthereforevoluntarilyengagedathirdpartydataprovider,IMShealth,tomonitorvariousSalesForceEffectiveness(SFE)metricsonamonthlybasis.

Indicatively,seetheresultsbelowwhichhavebeenconsistentacrosstheyear.

• July2016FarmaForceranking–#12OverallRepPerformance(Allothercompaniesinthelistof20aremultinationalpharmaceuticalcompanies)

• July2016FarmaForceranking–#1OverallRepPerformancecomparedtotheothercontractsalesorganisations

FarmaForcelearninganddevelopment

Weacknowledgethatasacompanywecannotbebetterthanourpeople,sowemaintainaconsistentandsystematicfocusonlearninganddevelopment.Whetherit’sanewmedication,biologicorsyntheticchemistry,a medical device or a patient service, we will ensure that we know everything about the product, thetherapeuticareaandthecompetition,priortoattemptingtopromoteittohealthcarepractitioners.

Everynewsalesteamwecreateandeverynewmemberthat joinsusmust learnthiscurriculum.Everynewproductthatcomestolifeinourbusiness,isalearninganddevelopmentopportunity.

FarmaForcemedicalaffairsbusinessunit

At FarmaForce we have the aptitude and experience which goes beyond mere sales and what is formallyrequired of us from our clients, we routinely exceed our client’s expectations. As members of MedicinesAustralia,weensurethatthehigheststandardsofcomplianceandmedicalgovernancearemet.Wehaveanin-house medical team and proactively deal with challenges such as pharmacovigilance, medical writing,medicaleducationtorepsorcomplianceapprovalofpromotionalmaterialforour clients. Wealsohavetheabilitytomanageanythingelsethatmaycomeourwayintheroutineconductofourbusiness.

FarmaForceHumanCapitalBusinessUnit

Whenitcomestoourpeoplewedon’tbelieveinvirtualsolutions.Wehavea“real”humancapitalbusiness unitwithrealpeople,bringingrealworldpharmaexperiencetoourenterprise.Ourin-houseteamofhumancapital specialistsensure thatourhumancapitalstrategyandpolicies,areat leastonparwithourpharmapartners, with an emphasis on staff recruitment, retention, training, learning and development, talentmanagementandcareeradvancement.

FarmaForceInnovativeBusinessandRevenueModel

AtFarmaForcewehavetransitionedbeyondtraditionaloutsourcingsolutionsandourbusinessmodelforgestruestrategicpartnershipswithourclients.

The novel way we structure our deals with business partners, the definition of the desired outcome andexpectations frompartnership iswhat translates into saleseffectivenessandcreatesbilateral value. It’s theresultthatcounts,notjusttheeffort.Henceourrevenuemodeltranscendsthetypicalfeeforservicemodel.

FarmaForceNovelandInnovativeBusinessTools

This freedom to operate outside the typical constraints throughour servicemodel allows us to create anddeploy innovativemarketing, promotional and educational tools that result in higher returnon investment,whilstsimultaneouslymaintainingcompliancewiththeMedicinesAustraliacodeofconduct.


Page 4

FarmaForceStatistics

Forthetwelve-monthperiod leadingtoQ32016, theFarmaForceheadcounthas increased45percent,ourclientbaseincreasedby250percentandwearenowworkingacrossseventherapeuticareas.Weprimarilywork across three channels; primary care, specialty and pharmacy.Market research thatwe commissionedfroman independent agency benchmarking the FarmaForce reputation has shown;awareness is good,ourhandpickedhighcalibreteamhasatrackrecordofsuccesswithintheindustry,wearefocusedonqualityandaddvaluebyofferingadditionalservicessupportingtheeffectivenessofsalesteams,weareafreshnewfaceinthemarketandclientswantFarmaForcetosucceed.

At FarmaForcewe make a significant financial and resource investment into quantifying the processes thatmakeadifferencetooureffectivenessandperformance.

FarmaForcehasnowearneditsplacewithintheAustralianmarketplaceandisconsideredavaluedbusinesspartnerby industryparticipantsandmore importantly, ithasbuilt theability toattractand retainexcellenttalentinourpeople.ThequalityofpotentialclientsandthedealflowprospectshaveneverbeenbetterandFarmaForceisideallypositionedtocapitaliseonthis.

DrGeorgeSyrmalis

Director–forandonbehalfoftheBoard

Date:29thAugust,2016


Page 5

CorporateGovernanceStatement30June2016

FarmaForceLimitedandtheboardarecommittedtoachievinganddemonstratingthehigheststandardofcorporategovernance.FarmaForceLimitedhasrevieweditscorporategovernancepracticesagainsttheCorporateGovernancePrinciplesandRecommendations(3rdedition)publishedbytheASXCorporateGovernanceCouncil

The2016corporategovernancestatementisdatedasat30thJune2016andreflectsthecorporategovernancepracticesinplacethroughoutthe2016financialyear.The2016corporategovernancestatementwasapprovedbytheboardon29thAugust2016.AdescriptionoftheCompany’scurrentcorporategovernancepracticesissetoutintheGroup’scorporategovernancestatementwhichcanbeviewedathttp://farmaforce.com.au/why-invest-2/


Page 6

Directors'Report30June2016

ThedirectorspresenttheirreportonFarmaForceLimitedforthefinancialyearended30June2016.

1. Generalinformation

Informationondirectors

Thenames,qualifications,experienceandspecialresponsibilitiesofeachpersonwhohasbeenadirectorduringtheyearandtothedateofthisreportare:

DanielMorato GeneralManager(ExecutiveDirector)until23/11/15

Qualifications BachelorofPharmacy

Experience Boardmembersince7/04/2015until23/11/15.PriortojoiningtheCompany,Danielenjoyedacareerinthepharmacyindustrythatspannedovertwentyyears.Muchofthistimewasspentasapharmacyproprietorandadvisor.EstablishingandmanagingnumerouspharmaciesduringhiscareerhasgivenDanielanin-depthunderstandingofthemarketchallengesanddriversfacingthepharmacyindustry,medicalservicesindustryandpharmaceuticalindustryasawhole.

Danielhasalsoadvisedanumberofpharmaceuticalorganisationsonthemanagementofchangingmarketconditions.

Hehasconsultedoneffectivemarketpenetrationfornewproducts,advisedonmanagingcompetitionandformingdefencestrategies,againstgenericproducts.

Interestinsharesand 500,000OrdinarySharesand500,000LoyaltyOptionsasatdateofoptions ceasingtobedirector

Specialresponsibilities GeneralManageruntil23/11/15

GeorgeElias Director(Independentnon-executive)

Qualifications BachelorofCommerce(UniversityofNewSouthWales),DiplomaofFinancialPlanning(Dip.FP),MemberCPAAustralia,ASICRG146Compliant(Securities),CertifiedFinancialPlanner®memberoftheFinancialPlanningAssociationofAustralia.

Experience Boardmembersince2/04/2015.Georgehasover30years’experienceinprovidingaccountingandbusinessadvisoryservices.Duringthisperiod,hehasbeeninvolvedinprovidingtaxationandbusinessadvicetosmallandmediumsizedenterprises,includingbusinessstructuring,cash-flowforecasting,taxationandsuperannuationstructuresupportandadvice.

GeorgeiscurrentlytheprincipalatEliasFinancialServicesandhasbeenprovidingfinancialandaccountingadviceasprincipalsinceJuly1991.Hisbusinessandfinancialacumen,coupledwithhisexperienceindealingwithavarietyofchallengesindifferentbusinessenvironmentsgiveshimthenecessaryskillstochairtheBoardandprovidestrategicleadershiptofaceanychallengesthatmayarise.

Interestinsharesand 125,000OrdinarySharesand125,000LoyaltyOptionsoptions

Specialresponsibilities ChairmanoftheBoard,MemberoftheRemunerationandNominationCommitteeandAuditandRiskCommittee


Page 7

Directors'Report(continued)30June2016

StamatiaTolias Director(Independentnon-executive)

Qualifications BachelorofScience(Nursing),MastersDegree(MentalHealth),MemberNursesAssociation(Greece).

Experience Boardmembersince2/04/2015.StamatiacurrentlyresidesinAthens,Greece.SheisaqualifiednurseandhasstudiedataMasterslevelinthefieldofmentalhealth.Stamatiacurrentlyworksasaresearchnurseinamentalhealthorganisationwhereshehasbeenemployedforthepastyearandahalf.SheiscurrentlyundertakingstudiesforherPhDatTheNationalKapodistrianUniversityofAthensandisexpectedtofurtherdevelopexpertiseinQualityUseofMedicines(QUM)principles.AlthoughStamatiahasnoexperienceinmanagingcompanies,itiscontemplatedthattheCompanywillbeabletobenefitfromherunderstandingofinternationalstandardsofQUMprinciples.

Furthermore,herunderstandingofthepracticeofthedeliveryofpharmacologicaltherapycombinedwiththequalityuseofmedicineprinciplescreatesauniqueopportunitytodrivetheCompany'sstrategiesandsequentialserviceoffering.

Interestinsharesand NILoptions

Specialresponsibilities MemberoftheRemunerationandNominationCommitteeandAuditandRiskCommittee

ConTsigounis Director(Non-executive)

Qualifications MemberoftheAustralianInstituteofCompanyDirectors

Experience Boardmembersince28/01/2014,resigned2/04/2015andreappointedon22/06/2015.ConisacurrentExecutiveDirectorandHeadofInvestorrelationsatiQnovateLtd.

Conhasover20yearsofexperienceinbusinessandinvestorrelations,specificallyinthewholesaleandretailsectors.AsamemberoftheBoardofiQnovateLtdsinceitsinception,Conhasbeenresponsibleforexecutingthatcompany'sinvestorrelationsandcapitalraisingstrategy.HisexperienceinShareholderrelationshipmanagementgiveshimthenecessaryskillsettoassisttheCompanyattainitscorporateobjectives.

Interestinsharesand NILoptions

Specialresponsibilities MemberoftheRemunerationandNominationCommitteeandAuditandRiskCommittee

Otherdirectorshipsin iQnovateLtdlistedentitiesheldinthepreviousthreeyears


Page 8


DrGeorgeSyrmalis Director(Non-executive)

Qualifications TrainedinNuclearMedicine-radiationimmunology

Experience Boardmemberfrom28/01/2014to2/04/2015,DrSyrmaliswasreappointedtotheCompanyboardon24/11/15.DrSyrmalisfoundedandledasCEOandChairmanofTheBionuclearGroupSA,(1995-2005)incorporatingAntisomaSA,BionuclearInstituteofDiagnosisandTherapySA,BionuclearResearchandDevelopmentSAandVitalcheckSA.

Interestinsharesand 10,000ordinarysharesOptions Otherdirectorshipsin ChairmanandExecutiveDirectorofiQnovateLtd,ExecutiveDirectorlistedentitiesheldin ofiQXLimitedthepreviousthreeyears

Directorshavebeeninofficesincethestartofthefinancialyeartothedateofthisreportunlessotherwisestated.

PrincipalActivitiesTheprincipalactivityofFarmaForceLimitedduringthefinancialyearwastheprovisionofservicesasacontractsalesorganisation.

NosignificantchangesinthenatureoftheCompany'sactivityoccurredduringthefinancialyear.

2. Operatingresultsandreviewofoperationsfortheyear

Operatingresults

ThelossoftheCompanyafterprovidingforincometaxamountedto$3,799,018comparedtoalossof$2,051,222in2015.

Dividendspaidorrecommended

Therewerenodividendspaidordeclaredduringthecurrentorpreviousfinancialyear.


Page 9


3. Otheritems

Significantchangesinstateofaffairs

TheCompanysuccessfullylistedontheASXon27thOctober2015viaanIPOwhichraised$5.077m.

Meetingsofdirectors

Duringthefinancialyear,6meetingsofdirectors(includingcommitteesofdirectors)wereheld.Attendancesbyeachdirectorduringtheyearwereasfollows:

Directors'Meetings

Numbereligibletoattend

Numberattended

GeorgeElias 6 6

DanielMorato 5 5

StamatiaToliasConTsigounisGeorgeSyrmalis

661

561


Page 10


Committeemembership

As at the date of this report, the Company had an audit and risk management committee and aremunerationandnominationcommittee.

Membersactingonthecommitteesoftheboardduringtheyearwere:

Auditandriskmanagementcommittee Remunerationandnominationcommittee

GeorgeElias GeorgeElias

StamatiaTolias StamatiaTolias

SpiroKevinSakiris ConTsigounis

Eventsafterreportingdate

NomattersorcircumstanceshavearisensincetheendofthefinancialyearwhichsignificantlyaffectedormaysignificantlyaffecttheoperationsoftheCompany,theresultsofthoseoperationsorthestateofaffairsoftheCompanyinfuturefinancialyears.

Dividends

Nodividendshavebeenpaidordeclaredsincetheendofthepreviousfinancialyear,nordothedirectorsrecommendthedeclarationofadividend.

LikelyDevelopmentsandExpectedResults

LikelydevelopmentsintheoperationsoftheGroupandtheexpectedresultsofthoseoperationsinfuturefinancialyearshavenotbeenincludedinthisreportastheinclusionofsuchinformationislikelytoresultinunreasonableprejudicetotheGroup.

Environmentalissues

TheCompany'soperationsarenotregulatedbyanysignificantenvironmentalregulationsunderalawoftheCommonwealthorofastateorterritoryofAustralia.

Indemnificationandinsuranceofofficersandauditors

Duringorsincetheendofthefinancialyear,thecompanyhasenteredintoagreementstoindemnifyDirectors,andpaid$16,456.45ininsurancepremiumsforDirectors&Officersinsurancewhichincludescoverforthisindemnification.

Thecompanyhasnot,duringorsincetheendofthefinancialyear,indemnifiedoragreedtoindemnifytheauditorofthecompanyoranyrelatedentityagainstaliabilityincurredbytheauditor.

Duringthefinancialyear,thecompanyhasnotpaidapremiuminrespectofacontracttoinsuretheauditorofthecompanyoranyrelatedentity.

Auditor’sindependencedeclaration

Theleadauditor’sindependencedeclarationinaccordancewithsection307CoftheCorporationsAct2001,fortheyearended30June2016hasbeenreceivedandcanbefoundonpage14ofthefinancialreport.


Page 11


4. RemunerationReport

RemunerationPolicy

TheConstitutionoftheCompanyprovidesthatthenon-executiveDirectorsareentitledtoremunerationasdeterminedbytheCompany ingeneralmeetingstobeapportionedamongtheminsuchmannerasthe Directors agree and, in default of agreement, equally. The aggregatemaximum remuneration fornon-executiveDirectorscurrentlydeterminedbytheCompanyis$300,000perannumatthedateofthisreport.

DirectorswhoalsochairtheAuditCommitteeshallbeentitledtofurtherdirector’sfeeofanadditional$5,000. In addition, non-executive Directors will be entitled to be reimbursed for properly incurredexpensesincludingtimecostsattendingtothebusinessofthecompany.

Ifanon-executiveDirectorperformsextraservices,whichintheopinionoftheDirectorsareoutsidethescopeoftheordinarydutiesoftheDirector,thecompanymayremuneratethatDirectorbypaymentofafixedsumdeterminedbytheDirectorsinadditiontoorinsteadoftheremunerationreferredtoabove.However, nopayment canbemade if theeffectwouldbe toexceed themaximumaggregateamountpayable tonon-executiveDirectors.Anon-executiveDirector isentitled tobepaid travellingandotherexpenses properly incurred by them in attending Director’s or general meetings of the Company orotherwiseinconnectionwiththebusinessoftheCompany.

TheremunerationpolicyofFarmaForceLimitedhasbeendesignedtoalignKeyManagementPersonnel(KMP)objectiveswithshareholderandbusinessobjectivesbyprovidingafixedremunerationcomponentand offering specific long-term incentives based on key performance areas affecting the consolidatedgroup’s financial results. The Board of FarmaForce Limited believes the remuneration policy to beappropriateandeffectiveinitsabilitytoattractandretainthehigh-qualityKMPtorunandmanagethegroup,aswellascreategoalcongruencebetweenDirectors,executivesandshareholders.

TheperformanceofKMPismeasuredagainstcriteriaagreedbiannuallywitheachexecutive.Allbonusesand incentivesmustbe linked topredeterminedperformancecriteria.Thepolicy isdesigned toattractthehighestcalibreofexecutivesandrewardthemforperformanceresultsleadingtolong-termgrowthinshareholderwealth.

AllremunerationpaidtoKMPisvaluedatthecosttothecompanyandexpensed.

Performance-basedRemuneration

TheKeyPerformanceIndicators(KPIs)aresetannually,withacertainlevelofconsultationwithKMP.Themeasuresarespecificallytailoredtotheareaeachindividualisinvolvedinandhasalevelofcontrolover.The KPIs target areas the Company believes hold greater potential for group expansion and profit,coveringfinancialandnon-financialaswellasshorttermandlong-termgoals.ThelevelsetforeachKPIisbasedonbudgetedfiguresfortheCompanyandrespectiveindustrystandards.

PerformanceinrelationtotheKPIsisassessedannually,withbonusesbeingawardeddependingonthenumberanddeemeddifficultyoftheKPIsachieved.Followingtheassessment,theKPIsarereviewed,andtheirefficiency isassessed inrelationtotheGroup’sgoalsandshareholderwealth,beforetheKPIsaresetforthefollowingyear.

IndeterminingwhetherornotaKPIhasbeenachieved,FarmaForceLimitedbasestheassessmentwhereappropriate on audited figures, however, in circumstances where the KPI involves comparison of theCompanyoradivisionwithin theCompany to themarket, independent reportsmaybeobtained fromorganisationssuchasStandard&Poors.Theuseofsuchfiguresreducesanyriskofcontentionrelatingtopaymenteligibility.TheBoarddoesnotbelievethatperformanceconditionsshouldincludeacomparisonwithfactorsexternaltotheCompanyatthistime.


Page 12


ServiceAgreements

On appointment to the Board, all non-executive directors enter into a service agreement with theCompany in the formof a letter of appointment. The letter summarises theBoardpolicies and terms,includingremuneration,relevanttotheofficeofdirector.

The remunerationandother termsofemployment forexecutiveDirectorsandother seniorexecutivesaresetoutinformalserviceagreementsassummarisedbelow.

In cases of resignation, no separationpayment ismade to the executive, except for amountsdue andpayableuptothedateofceasingemployment,includingaccruedleaveentitlements.

Remunerationdetailsfortheyearended30June2016

Thefollowingtableofbenefitsandpaymentdetails,inrespecttothefinancialyear,thecomponentsofremunerationforeachmemberofthekeymanagementpersonneloftheGroup.

Tableofbenefitsandpayments post

shortterm employment

cashsalaryfees

bonus carallowance

directorfee

pensionandsuperannuation

2016 $ $ $ $ $ $

Directors

GeorgeElias 29,669 - - - 2,818 32,487StamatiaTolia 32,487 - - - - 32,487DanielMorato* 76,847 - - - 7,300 84,147

139,003 - - - 10,118 149,121

*DanielMoratoresignedfromthecompanyon23November2015

post

shortterm employment

cashsalary

feesbonus car

allowancedirectorfee

pensionandsuperannuation

2015 $ $ $ $ $ $

Directors GeorgeElias - - - - - -StamatiaTolia - - - - - -DanielMorato* 168,000 - - - 15,960 183,960

168,000 - - - 15,960 183,960


Page 13


5. Remunerationreport(continued)

Securitiesreceivedthatarenotperformancerelated

Nomembersofkeymanagementpersonnelareentitledtoreceivesecuritieswhicharenotperformance-basedaspartoftheirremunerationpackage.

KMP related party transactions

TheGroupundertookthefollowingtransactionswith:

• Anentityoverwhichthekeymanagementpersonorfamilymemberhas,directlyor indirectly,control,jointcontrolorsignificantinfluence,duringthereportingperiod.

This is disclosed as under the related party disclosure note as per note 18 to the annual financialstatements.

Thisdirector'sreport,incorporatingtheremunerationreport,issignedinaccordancewitharesolutionoftheBoardofDirectors.

Director:

GeorgeElias

Datedthis29thdayofAugust2016


Page 14

Auditor’sIndependenceDeclaration

Auditor’sIndependenceDeclarationunderSection307CoftheCorporationsAct

2001totheDirectorsofFarmaForceLimited AsleadauditorfortheauditofFarmaForceLimitedforthefinancialyearended30June,2016,Ideclarethat,tothebestofmyknowledgeandbelief,therehavebeen:i. nocontraventionsoftheauditorindependencerequirementsassetoutinthe CorporationsAct2001

inrelationtotheaudit;andii. nocontraventionsofanyapplicablecodeofprofessionalconductinrelationtotheaudit.FORTUNITYASSURANCE

TRDavidsonPartnerDated:31August,2016


The accompanying notes form part of these financial statements. Page 15

StatementofProfitorLossandOtherComprehensiveIncomeFortheYearEnded30June2016 2016 2015 Note $ $ Revenue 3 1,950,840 352,683Otherincome 41,145 27CostofGoodssold (2,670,861) (595,144)Employeebenefitsexpense 4 (1,008,639) (490,548)Depreciationandamortisationexpense 4 (38,538) (19,584)Officesharingcosts (691,820) (627,705)IPOandlistingcosts (82,754) -Otherexpenses (1,296,452) (483,390)Financecosts 4 (1,939) (187,561) Lossbeforeincometax (3,799,018) (2,051,222)Incometaxbenefit - Lossfortheyear (3,799,018) (2,051,222) Othercomprehensiveincome,netofincometax Othercomprehensiveincomefortheyear - -Totalcomprehensiveincome (3,799,018) (2,051,222) Earningspershare Basicearningspershare(cents) 13 (4.34) n/aDilutedearningspershare(cents) 13 (4.34) n/a



StatementofFinancialPositionAsat30June2016

2016

2015 Note $ $ASSETS CURRENTASSETS Cashandcashequivalents 6 1,541,546 1,206,008Tradeandotherreceivables 7 368,606 294,145TOTALCURRENTASSETS 1,910,152 1,500,153 NON-CURRENTASSETS TradeandOtherreceivables 7 380 -Property,plantandequipment 8 240,259 153,179DeferredTaxAssets - -InvestmentinAssociate 17 269,000 -TOTALNON-CURRENTASSETS 509,639 153,179TOTALASSETS 2,419,791 1,653,332

LIABILITIES CURRENTLIABILITIES Tradeandotherpayables 9 579,665 265,817Borrowings 10 - 2,903,961Otherliabilities 11 - 149,579TOTALCURRENTLIABILITIES 579,665 3,319,357

NON-CURRENTLIABILITIES DeferredTaxLiabilities - -TOTALNON-CURRENTLIABILITIES - -TOTALLIABILITIES 579,665 3,319,357NETASSETS/(DEFICIENCY) 1,840,126 (1,666,025) EQUITY Issuedcapital 12 8,068,859 1ConvertibleNotes - 854,463Capitalraisingcosts - (90,774)Accumulatedlosses (6,228,733) (2,429,715)TOTALEQUITY 1,840,126 (1,666,025)



StatementofChangesinEquityFortheYearEnded30June2016

Sharescapital

Accumulatedlosses Total

2016

$ $ $Balanceat1July2015 763,690 (2,429,715) (1,666,025)Lossfortheyear - (3,799,018) (3,799,018)Totalcomprehensiveincomefortheyear - (3,799,018) (3,799,018) Shareissuedduringtheyear 5,459,545 - 5,459,545Convertiblenotes 2,903,961 - 2,903,961Capitalraisingcosts (1,058,337) - (1,058,337) Balanceat30June2016 8,068,859 (6,228,733) 1,840,126

Sharescapital

Accumulatedlosses Total

2015

$ $ $Balanceat1July2014 134,488 (378,493) (244,005)Lossfortheyear - (2,051,222) (2,051,222)Totalcomprehensiveincomefortheyear - (2,051,222) (2,051,222) Convertiblenotes 719,976 - 719,976Capitalraisingcosts (74,633) - (74,633)IPOlistingcosts (16,141) - (16,141)Balanceat30June2015

763,690 (2,429,715) (1,666,025)



StatementofCashflowsFortheYearEnded30June2016 2016 2015 Note $ $CASHFLOWSFROMOPERATINGACTIVITIES: Receiptsfromcustomers 1,921,504 295,891Paymentstosuppliersandemployees (5,549,008) (2,208,012)Interestpaid (1,939) (160)Interestreceived 41,145 -Netcash(usedin)operatingactivities 19 (3,588,298) (1,912,281) CASHFLOWSFROMINVESTINGACTIVITIES: Proceedsfromsaleofplantandequipment - 594Purchaseofproperty,plantandequipment (125,618) (77,422)Investmentinassociates (269,000) -Netcash(usedin)investingactivities (394,618) (76,828) CASHFLOWSFROMFINANCINGACTIVITIES: Proceedsfromissueofshares 5,459,545 -Proceedsfromtheissueofconvertiblenotes - 3,385,500Capitalraisingcosts–convertiblenotes (1,058,337) (364,109)IPOlistingcosts (82,754) (16,141)Netcashprovidedbyfinancingactivities 4,318,454 3,005,250 Netincreaseincashandcashequivalentsheld 335,538 1,016,141CashandCashequivalentsatbeginningofyear 1,206,008 189,867CashandCashequivalentsatendoffinancialyear 6 1,541,546 1,206,008


Page 19

NotestotheFinancialStatementsFortheYearEnded30June2016

The financial report covers FarmaForce Limited as an Individual entity. FarmaForce Limited is a for-profitCompany,incorporatedanddomiciledinAustralia.

ThefunctionalandpresentationcurrencyofFarmaForceLimitedisAustraliandollars.

1. BasisofPreparation

The financial statements are general purpose financial statements that have been prepared inaccordancewiththeCorporationsAct2001,AustralianAccountingStandardsandInterpretationsoftheAustralianAccountingStandardsBoardandInternationalFinancialReportingStandardsasissuedbytheInternationalAccountingStandardsBoard.

The financial statements have been prepared on an accruals basis and are based on historical costsmodified,where applicable, by themeasurement at fair valueof selectednon-current assets, financialassetsand financial liabilities.Thecompany isa for-profitentity for financial reportingpurposesunderAustralianAccountingStandards.

Significant accounting policies adopted in the preparation of these financial statements are presentedbelowandareconsistentwithpriorreportingperiodsunlessotherwisestated.

2. SummaryofSignificantAccountingPolicies

(a) IncomeTax

Thetaxexpenserecognisedinthestatementofprofitorlossandothercomprehensiveincomecomprisesofcurrentincometaxexpenseplusdeferredtaxexpense.

Currenttaxistheamountofincometaxespayable/(recoverable)inrespectofthetaxableprofit(loss)fortheyearandismeasuredattheamountexpectedtobepaidto(recoveredfrom)thetaxationauthorities,usingthetaxratesandlawsthathavebeenenactedorsubstantivelyenactedbytheendofthereportingperiod. Current tax liabilities (assets) aremeasured at the amounts expected to bepaid to (recoveredfrom)therelevanttaxationauthority.

Deferredtaxisnotprovidedforthefollowing

• Theinitialrecognitionofanassetorliabilityinatransactionthatisnotabusinesscombinationandatthetimeofthetransaction,affectsneitheraccountingprofitnortaxableprofit(taxloss).

• Taxabletemporarydifferencesarisingontheinitialrecognitionofgoodwill.

• Temporarydifferencesrelatedtoinvestmentinsubsidiaries,associatesandjointlycontrolledentitiestotheextentthattheGroupisabletocontrolthetimingofthereversalofthetemporarydifferencesanditisprobablethattheywillnotreverseintheforeseeablefuture.

Deferredtaxassetsandliabilitiesaremeasuredatthetaxratesthatareexpectedtoapplytotheperiodwhentheassetisrealisedortheliabilityissettled,basedontaxrates(andtaxlaws)thathavebeenenactedorsubstantivelyenactedbytheendofthereportingperiod.

Deferredtaxassetsarerecognisedforalldeductibletemporarydifferencesandunusedtaxlossestotheextentthatitisprobablethattaxableprofitwillbeavailableagainstwhichthedeductibletemporarydifferencesandlossescanbeutilised.

Currenttaxassetsandliabilitiesareoffsetwherethereisalegallyenforceablerighttosetofftherecognisedamountsandthereisanintentioneithertosettleonanetbasisortorealisetheassetandsettletheliabilitysimultaneously.


Page 20

NotestotheFinancialStatements(continued)FortheYearEnded30June2016

2. SummaryofSignificantAccountingPolicies(continued)

Deferredtaxassetsandliabilitiesareoffsetwherethereisalegalrighttosetoffcurrenttaxassetsagainstcurrenttaxliabilitiesandthedeferredtaxassetsandthedeferredtaxliabilitiesrelatetoincometaxesleviedbythesametaxationauthorityoneitherthesametaxableentityordifferenttaxableentitieswhichintendeithertosettlecurrenttaxliabilitiesandassetsonanetbasis,ortorealisetheassetsandsettletheliabilitiessimultaneouslyineachfutureperiodinwhichsignificantamountsofdeferredtaxliabilitiesorassetsareexpectedtobesettledorrecovered.

Currentanddeferredtaxisrecognisedasincomeoranexpenseandincludedinprofitorlossfortheperiodexceptwherethetaxarisesfromatransactionwhichisrecognisedothercomprehensiveincomeorequityrespectively.

(b) Leases

Leasepaymentforoperatinglease,wheresubstantiallyalloftherisksandbenefitsremainwiththelessor,arechargedasexpensesonastraightlinebasisoverlifeoftheleaseterm.

Leaseincentivesunderoperatingleasesarerecognisedasaliabilityandamortisedonastraightlinebasisoverthelifeoftheleaseterm.

(c) Revenueandotherincome

Revenueisrecognisedwhentheamountoftherevenuecanbemeasuredreliably.Itisprobablethateconomicbenefitsassociatedwiththetransactionwillflowtothecompanyandspecificcriteriarelatingtothetypeoftherevenueasnotedbelow,hasbeensatisfied.

Revenueismeasuredatthefairvalueoftheconsiderationreceivedorreceivableandispresentednetofreturns,discountsandrebates.

Allrevenueisstatednetoftheamountofgoodsandservicestax(GST).

Otherincome

Otherincomeisrecognisedonanaccrualsbasiswhenthecompanyisentitledtodoit.

(d) GoodsandServicesTax(GST)

Revenue,expensesandassetsarerecognisednetoftheamountofgoodsandservicestax(GST),exceptwheretheamountofGSTincurredisnotrecoverablefromtheAustralianTaxationOffice(ATO).

ReceivablesandpayablearestatedinclusiveofGST.

ThenetamountofGSTrecoverablefrom,orpayableto,theATOisincludedasapartofreceivablesorpayablesinthestatementofthefinancialposition.

CashflowsinthestatementofcashflowsareincludedonagrossbasisandtheGSTcomponentofcashflowsarisingfrominvestingandfinancingactivitieswhichisrecoverablefrom,orpayableto,thetaxationauthorityisclassifiedasoperatingcashflows.


Page 21


2. SummaryofSignificantAccountingPolicies(continued)(e) Property,PlantandEquipment

Eachclassofproperty,plantandequipmentiscarriedatcostorfairvalueless,whereapplicable,anyaccumulateddepreciationandimpairmentoflosses.

Wherethecostmodelisused,theassetsiscarriedatitscostlessanyaccumulateddepreciationandanyimpairmentlosses.Costsincludepurchaseprice,otherdirectlyattributablecostsandtheinitialestimateofthecostsofdismantlingandrestoringtheassets,whereapplicable.

PlantandEquipment

Plantandequipmentaremeasuredusingthecostmodel.

Depreciation

Property,plantandequipment,excludingfreeholdland,isdepreciatedonastraightbasisovertheassetsusefullifetothecompany,commencingwhentheassetsisreadyforuse.

Leasedassetsandleaseholdimprovementsareamortisedovertheshorterofeithertheunexpiredperiodoftheleaseortheirestimatedusefullife.

Thedepreciationratesusedforeachclassofdepreciableassetareshownbelow:

Fixedassetclass Depreciationrate

PlantandEquipment 10%to33%

Furniture,FixturesandFittings 5%to33%

Leaseholdimprovements 10%

Attheendofeachannualreportingperiod,thedepreciationmethod,usefullifeandresidualvalueofeachassetisreviewed.Anyrevisionsareaccountedforprospectivelyasachangeinestimate.

(f) FinancialInstruments

Financialinstrumentsarerecognisedinitiallyusingtradedateaccounting,i.e.onthedatethatthecompanybecomespartytothecontractualprovisionsoftheinstrument.

Ontheinitialrecognition,allfinancialinstrumentsaremeasuredatfairvalueplustransactioncosts(exceptforinstrumentsmeasuredatfairvaluethroughprofitandlosswheretransactioncostsareexpensedasincurred).

FinancialAssets

Financialassetsaredividedintothefollowingcategorieswhicharedescribedindetailbelow:

• loansandreceivables;

• financialassetsatfairvaluethroughprofitorloss;

• availableforsalefinancialassets;and

• held-to-maturityinvestments.

Financialassetsareassignedtothedifferentcategoriesoninitialrecognition,dependingonthecharacteristicsoftheinstrumentanditspurpose.Afinancialinstrument’scategoryisrelevantto

thewayitismeasuredandwhetheranyresultingincomeandexpensesarerecognisedinprofitorlossorinothercomprehensiveincome.

Allincomeandexpensesrelatingtofinancialassetsarerecognisedinthestatementofprofitorlossandothercomprehensiveincomeinthe‘financeincome’or‘financecosts’lineitemrespectively.


Page 22

NotestotheFinancialStatements(continued)For the Year Ended 30 June 2016

2. SummaryofSignificantAccountingPolicies(continued)Loansandreceivables

Loansandreceivablesarenon-derivativefinancialassetswithfixedordeterminablepaymentsthatarenotquotedinanactivemarket.Theyariseprincipallythroughtheprovisionofgoodsandservicestocustomersbutalsoincorporateothertypesofcontractualmonetaryassets.

Afterinitialrecognitionthesearemeasuredatamortisedcostusingtheeffectiveinterestmethod,lessprovisionforimpairment.Anychangeintheirvaluerecognisedinprofitorloss.

TheCompany’stradeandmostotherreceivablesfallintothiscategoryoffinancialinstruments.

Discountingisomittedwheretheeffectofdiscountingisconsideredimmaterial.

Significantreceivablesareconsideredforimpairmentonanindividualassetbasiswhentheyarepastdueatthereportingdateorwhenobjectiveevidenceisreceivedthataspecificcounterpartywilldefault.

Theamountoftheimpairmentisthedifferencebetweenthenetcarryingamountandthepresentvalueofthefutureexpectedcashflowsassociatedwiththeimpairedreceivable.

Insomecircumstances,theCompanyrenegotiatesrepaymenttermswithcustomerswhichmayleadtochangesinthetimingofthepayments,theCompanydoesnotnecessarilyconsiderthebalancetobeimpaired,howeverassessmentismadeonacase-by-casebasis.

Financialassetsatfairvaluethroughprofitorloss

Financialassetsatfairvaluethroughprofitorlossincludefinancialassets:

• acquiredprincipallyforthepurposeofsellinginthenearfuture

• designatedbytheentitytobecarriedatfairvaluethroughprofitorlossuponinitialrecognitionor

• whicharederivativesnotqualifyingforhedgeaccounting.

TheCompanyhassomederivativeswhicharedesignatedasfinancialassetsatfairvaluethroughprofitorloss.

Assetsincludedwithinthiscategoryarecarriedinthestatementoffinancialpositionatfairvaluewithchangesinfairvaluerecognisedinfinanceincomeorexpensesinprofitorloss.

Anygainorlossarisingfromderivativefinancialinstrumentsisbasedonchangesinfairvalue,whichisdeterminedbydirectreferencetoactivemarkettransactionsorusingavaluationtechniquewherenoactivemarketexists.

Held-to-maturityinvestments

Held-to-maturityinvestmentsarenon-derivativefinancialassetswithfixedordeterminablepaymentsandfixedmaturity.Investmentsareclassifiedasheld-to-maturityifitistheintentionoftheCompany'smanagementtoholdthemuntilmaturity.

Held-to-maturityinvestmentsaresubsequentlymeasuredatamortisedcostusingtheeffectiveinterestmethod,withrevenuerecognisedonaneffectiveyieldbasis.Inaddition,ifthereisobjectiveevidencethattheinvestmenthasbeenimpaired,thefinancialassetismeasuredatthepresentvalueofestimatedcashflows.Anychangestothecarryingamountoftheinvestmentarerecognisedinprofitorloss.

Available-for-salefinancialassets

Available-for-salefinancialassetsarenon-derivativefinancialassetsthatdonotqualifyforinclusioninanyoftheothercategoriesoffinancialassetsorwhichhavebeendesignatedinthiscategory.

Allavailable-for-salefinancialassetsaremeasuredatfairvalue,withsubsequentchangesinvaluerecognisedinothercomprehensiveincome.

Gainsandlossesarisingfromfinancialinstrumentsclassifiedasavailable-for-saleareonlyrecognisedinprofitorlosswhentheyaresoldorwhentheinvestmentisimpaired.


Page 23


2. SummaryofSignificantAccountingPolicies(continued)Inthecaseofimpairmentorsale,anygainorlosspreviouslyrecognisedinequityistransferredtotheprofitorloss.

Lossesrecognisedinpriorperiodconsolidatedstatementofprofitorlossandothercomprehensiveincomestatementsresultingfromtheimpairmentofdebtsecuritiesarereversedthroughthestatementofprofitorlossandothercomprehensiveincome,ifthesubsequentincreasecanbeobjectivelyrelatedtoaneventoccurringaftertheimpairmentlosswasrecognisedinprofitorloss.

Financialliabilities

Financialliabilitiesareclassifiedaseitherfinancialliabilities'atfairvaluethroughprofitorloss'orotherfinancialliabilitiesdependingonthepurposeforwhichtheliabilitywasacquired.AlthoughtheCompanyusesderivativefinancialinstrumentsineconomichedgesofcurrencyandinterestraterisk,itdoesnothedgeaccountforthesetransactions.

TheCompany'sfinancialliabilitiesincludeborrowings,tradeandotherpayables(includingfinanceleaseliabilities),whicharemeasuredatamortisedcostusingtheeffectiveinterestratemethod.

Impairmentoffinancialassets

AttheendofthereportingperiodtheCompanyassesseswhetherthereisanyobjectiveevidencethatafinancialassetorgroupoffinancialassetsisimpaired.

Financialassetsatamortisedcost

Ifthereisobjectiveevidencethatanimpairmentlossonfinancialassetscarriedatamortisedcosthasbeenincurred,theamountofthelossismeasuredasthedifferencebetweentheasset'scarryingamountandthepresentvalueoftheestimatedfuturecashflowsdiscountedatthefinancialassetsoriginaleffectiveinterestrate.

Impairmentonloansandreceivablesisreducedthroughtheuseofanallowanceaccounts,allotherimpairmentlossesonfinancialassetsatamortisedcostaretakendirectlytotheasset.

Subsequentrecoveriesofamountspreviouslywrittenoffarecreditedagainstotherexpensesinprofitorloss.

Available-for-salefinancialassets

Asignificantorprolongeddeclineinvalueofanavailable–for-saleassetbelowitscostisobjectiveevidenceofimpairment,inthiscase,thecumulativelossthathasbeenrecognisedinothercomprehensiveincomeisreclassifiedfromequitytoprofitorlossasareclassificationadjustment.Anysubsequentincreaseinthevalueoftheassetistakendirectlytoothercomprehensiveincome.

(g) Impairmentofnon-financialassets

AttheendofeachreportingperiodtheCompanydetermineswhetherthereisanevidenceofanimpairmentindicatorfornon-financialassets.

Wherethisindicatorexistsandregardlessforgoodwill,indefinitelifeintangibleassetsandintangibleassetsnotyetavailableforuse,therecoverableamountoftheassetisestimated.

Whereassetsdonotoperateindependentlyofotherassets,therecoverableamountoftherelevantcash-generatingunit(CGU)isestimated.

TherecoverableamountofanassetorCGUisthehigherofthefairvaluelesscostsofdisposalandthevalueinuse.Valueinuseisthepresentvalueofthefuturecashflowsexpectedtobederivedfromanassetorcash-generatingunit.

Wheretherecoverableamountislessthanthecarryingamount,animpairmentlossisrecognisedinprofitorloss.

Reversalindicatorsareconsideredinsubsequentperiodsforallassetswhichhavesufferedanimpairmentloss,exceptforgoodwill.


Page 24


2. SummaryofSignificantAccountingPolicies(continued)(h) Cashandcashequivalents

Cashandcashequivalentscomprisescashonhand,demanddepositsandshort-terminvestmentswhicharereadilyconvertibletoknownamountsofcashandwhicharesubjecttoaninsignificantriskofchangeinvalue.

Bankoverdraftsalsofrompartofcashequivalentsforthepurposeofthestatementofcashflowsandarepresentedwithincurrentliabilitiesonthestatementoffinancialposition.

(i) Employeebenefits

ProvisionismadefortheCompany’sliabilityforemployeebenefitsarisingfromservicesrenderedbyemployeestotheendofthereportingperiod.Employeebenefitsthatareexpectedtobewhollysettledwithinoneyearhavebeenmeasuredattheamountsexpectedtobepaidwhentheliabilityissettled,plusrelatedon-costs.

Employeebenefitsexpectedtobesettledmorethantwelvemonthsaftertheendofthereportingperiodhavebeenmeasuredatthepresentvalueoftheestimatedfuturecashoutflowstobemadeforthosebenefits.Indeterminingtheliability,considerationisgiventoemployeewageincreasesandtheprobabilitythattheemployeemaysatisfyvestingrequirements.Cashflowsarediscountedusingmarketyieldsonnationalgovernmentbondswithtermstomaturitythatmatchtheexpectedtimingofcashflows.Changesinthemeasurementoftheliabilityarerecognisedinprofitorloss.

EmployeebenefitsarepresentedascurrentliabilitiesinthestatementoffinancialpositioniftheCompanydoesnothaveanunconditionalrighttodefersettlementoftheliabilityforatleast12monthsafterthereportingdateregardlessoftheclassificationoftheliabilityformeasurementpurposesunderAASB119.

(j) Adoptionofnewandrevisedaccountingstandards

Theconsolidatedentityhasadoptedallofthenew,revisedoramendingAccountingStandardsandinterpretationsissuedbytheAustralianAccountingStandardsBoard('AASB')thataremandatoryforthecurrentreportingperiod.

Anynew,revisedoramendingAccountingStandardsorInterpretationsthatarenotyetmandatoryhavenotbeenearlyadopted.

AnysignificantimpactontheaccountingpoliciesoftheconsolidatedentityfromtheadoptionoftheseAccountingStandardsandInterpretationsaredisclosedbelow.TheadoptionoftheseAccountingStandardsandInterpretationsdidnothaveanysignificantimpactonthefinancialperformanceorpositionofthecompany.

AASB15RevenuefromContractswithCustomers

Thisstandardanditsconsequentialamendmentstootherstandardsareapplicabletoannualreportingperiodsbeginningonorafter1January2017.Thecoreprincipleisthatanentityrecognisesrevenuetodepictthetransferofpromisedgoodsorservicestocustomersinanamountthatreflectstheconsiderationtowhichtheentityexpectstobeentitledinexchangeforthosegoodsorservices,basedontheperformanceobligationsassociatedwiththeprovisionofthosegoodsorservices.Forgoods,theperformanceobligationissatisfiedwhenthecustomerobtainscontrolofthegoods.Forservices,theperformanceobligationissatisfiedwhentheservicehasbeenprovided.

AlthoughthedirectorsanticipatethattheadoptionofAASB15mayhaveanimpactontheCompany’sfinancialstatements,itisimpracticableatthisstagetoprovideareasonableestimateofsuchimpact.


Page 25


3. RevenueandOtherIncome

Revenuefromcontinuingoperations2016$

2015$

Salesrevenue -provisionofcontractrevenue 1,914,476 502,921-sharedservicesrevenue 36,364 --incomeinvoicedforservicesnotyetcompletedatyearend - (150,238)

NetRevenueInvoiced1,950,840 352,683

OtherIncome -Netgainondisposalofproperty,plantandequipment - 27-Financeincome-Otherinterestreceived 41,145 -

4. ResultfortheYear

Theresultfortheyearwasderivedaftercharging/(crediting)thefollowingitems:

2016$

2015$

FinanceCosts Financialliabilitiesmeasuredatamortisedcost: -Otherinterestexpense 1,939 160

-interestonconvertiblenotes - 187,401Totalfinancecosts 1,939 187,561 Theresultfortheyearincludesthefollowingspecificexpenses:

Otherexpenses: Employeebenefitsexpense 1,008,639 490,548

Depreciationexpense 38,538 19,584

5. Incometaxexpense

2016$

2015$

(a)Reconciliationofincometaxbenefittoaccountingprofit: (3,799,018) (2,051,222)Profit 30% 30%Taxbenefit (1,139,706) (753,666)Addtaxeffectof:

Expenditurenotallowableforincometaxpurposes 22,092 -Fixedassettimingdifferences 58,466 -Recognitionofprioryeartaxlosses (804,773) -Adjustmenttodeferredtaxliability 19,022 -Deferredtaxassetsnotbroughttoaccount 1,844,899 753,666


Page 26


6. Cashandcashequivalents

2016$

2015$

Cashatbankandonhand

1,541,546 1,206,008

7. TradeandotherreceivablesCURRENT 2016

$2015$

Tradereceivables 216,415 209,332Prepayments 99,550 47,674Relatedpartyreceivables 29,383 -Otherreceivables 23,258 37,139Totalcurrenttradeandotherreceivables 368,606 294,145 NON-CURRENT Deposit 380 - Aginganalysisoftradereceivables: Neitherpastdue,norimpaired: Current 81,238 176,198Pastdue,butnotimpaired 1-30daysoverstandardterms 11,258 33,13461+daysoverstandardterms 123,919 -Nettradereceivables 216,415 209,332


Page 27


8. Property,plantandequipment

PLANTANDEQUIPMENT

2016$

2015$

Plantandequipment Atcost

105,262 85,407Accumulateddepreciation

(33,658) (10,643)

Totalplantandequipment

71,604 74,764Furniture,fixturesandfittings

Atcost


(4,844) (1,844)

Totalfurniture,fixturesandfittings

30,472 11,744LeaseholdImprovements

Atcost


(19,828) (7,306)

Totalleaseholdimprovements

138,183 66,671Totalplantandequipment

240,259 153,179

Totalproperty,plantandequipment

240,259 153,179

(a) Movementsincarryingamountsofproperty,plantandequipment

Movementinthecarryingamountforeachclassofproperty,plantandequipmentbetweenthebeginningandtheendofthecurrentfinancialyear:

PlantandEquipment

Furniture,Fixturesand

Fittings Improvement TotalYearended30June2016 $ $ $ $Balanceatthebeginningofyear 74,764 11,744 66,671 153,179Additions 19,855 21,728 84,034 125,617Depreciationexpense (23,015) (3,000) (12,522) (38,537)Balanceattheendoftheyear 71,604 30,472 138,183 240,259

Yearended30June2015 Balanceatthebeginningofyear 17,785 8,981 69,145 95,911Additions 67,579 4,568 5,275 77,422Disposals-writtendownvalue (109) - (460) (569)Depreciationexpense (10,491) (1,805) (7,289) (19,585)Balanceattheendoftheyear 74,764 11,744 66,671 153,179


Page 28


9. Tradeandotherpayables

2016$

2015$

CURRENT Unsecuredliabilities

Tradepayables 151,918 22,318Employeebenefits 75,344 45,508Relatedpartypayables 46,897 7,333Sundrypayablesandaccruedexpenses 192,419 -Otherpayables 113,087 190,658

579,665 265,817

10. Borrowings

2016$

2015$

CURRENT Unsecuredliabilities:Convertiblenotes

- 2,903,961

Duringtheyearended30June2016,theCompanysuccessfullylistedontheAustralianStockExchange.Atthisdate,theoutstandingconvertiblenoteswereconvertedtoordinarysharesintheCompany.

11. Otherliabilities

2016$

2015$

CURRENT AmountsInvoicedforservicesnotyetcompletedatyearend - 149,579

12. IssuedCapital

2016 2015

$ $

(2015:1)Ordinaryshares $8,068,859 $1

Movementsinordinarysharecapital No. $Openingbalance1July2014 1 1

Closingbalanceat30June2015 1 1

Sharesissuedduringtheyear: Conversionofnotespreviouslyclassifiedasequity - 763,689Conversionofnotespreviouslyclassifiedasaliability 19,302,500 2,903,961Issuesofshares 108,198,479 5,459,545Less:Transactioncostsarisingonsharesissued - (1,058,337)

127,500,980 $8,068,859


Page 29


TheholdersofordinarysharesareentitledtoparticipateindividendsandtheproceedsonwindingupoftheCompany.OnashowofhandsatmeetingsoftheCompany,eachholderofordinaryshareshasonevoteinpersonorbyproxy,anduponapolleachshareisentitledtoonevote.

TheCompanydoesnothaveauthorisedcapitalorparvalueinrespectofitsshares.

Loyaltyoptions

The Company has 19,302,500 Loyalty options on issue exercise-able at 20c each between 24 to 36monthsafter thedateofadmissionof theCompany’s shares to theOfficial Listof theASX.Theoptionholdersmustbeholdingtheunderlyingshares,beingoneshareforoneoption,tobeabletoexercisetheoption.

13. EarningsperShare

2016$

2015$

(a)Reconciliationofearningstoprofitorlossfromcontinuingoperations

Profitfromcontinuingoperations (3,799,018) (2,051,222)

(b)Earningsusedtocalculateoverallearningspershare

Earningsusedtocalculateoverallearningspershare (3,799,018) (2,051,222)

No. No.

(c)Weightedaveragenumberofordinarysharesoutstandingduringtheyearused in calculating basic EPS Weighted average number of ordinarysharesoutstandingduringtheyearusedincalculatingbasicEPS 87,439,197 1


Page 30


14. FinancialRiskManagement TheCompanyisexposedtoavarietyoffinancialrisksthroughitsuseoffinancialinstruments.

TheCompany’soverallriskmanagementplanseekstominimisepotentialadverseeffectsduetotheunpredictabilityoffinancialmarkets.TheCompanydoesnotspeculateinfinancialassets.

ThemostsignificantfinancialriskstowhichtheCompanyisexposedtoaredescribedbelow:

Specificrisks

• Marketrisk–currencyriskandpricerisk

• Creditrisk

• Liquidityrisk

FinancialInstrumentsused

TheprincipalcategoriesoffinancialinstrumentusedbytheCompanyare:

• Tradereceivables

• Cashatbank

• Tradeandotherpayables

Thetotalsforeachcategoryoffinancialinstruments,measuredinaccordancewithAASB139:FinancialInstruments:RecognitionandMeasurementasdetailedintheaccountingpoliciestothesefinancialstatements,areasfollows:

2016 2015

$ $

Financialassets Cashandcashequivalents 1,541,546 1,206,008Tradeandotherreceivables 269,056 246,471

Totalfinancialassets 1,810,602 1,452,479

Financialliabilities Financialliabilitiesatamortisedcost: -tradeandotherpayables 311,902 220,309-borrowings - 2,903,961

Totalfinancialliabilities 311,902 3,124,270

Objectives,policiesandprocesses

RiskmanagementiscarriedoutbytheCompany’sBoardofDirectors.TheFinanceCommitteehasprimaryresponsibilityforthedevelopmentofrelevantpoliciesandprocedurestomitigatetheriskexposureoftheCompany.ThesepoliciesandproceduresarethenapprovedandtabledbytheBoardofDirectors.

ReportsarepresentedateachBoardmeetingregardingtheimplementationofthesepoliciesandanyriskexposurewhichtheRiskManagementCommitteebelievestheBoardshouldbeawareof.

SpecificinformationregardingthemitigationofeachfinancialrisktowhichtheCompanyisexposedisprovidedbelow.


Page 31


14.FinancialRiskManagement(continued) Liquidityrisk

LiquidityriskarisesfromtheCompany’smanagementofworkingcapitalandthefinancechargesandprincipalrepaymentsonitsdebtinstruments.ItistheriskthattheCompanywillencounterdifficultyinmeetingitsfinancialobligationsastheyfalldue.

TheCompany’spolicyistoensurethatitwillalwayshavesufficientcashtoallowittomeetitsliabilitiesasandwhentheyfalldue.TheCompanymaintainscashtomeetitsliquidityrequirementsforupto30daysperiod.

Atthereportingdate,thesereportsindicatethatthecompanyexpectedtohavesufficientliquidresourcestomeetsitsobligationsunderallreasonablyexpectedcircumstancesandwillnotneedtodrawdownanyofthefinancingfacilities.

Within1Year Total 2016

$2015$

2016$

2015$

Financialliabilitiesdueforpayment

Tradeandotherpayables 311,902 220,309 311,902 220,309

Borrowings - 2,903,961 - 2,903,961

Totalfinancialliabilitiesdueforpayment 311,902 3,124,270 311,902 3,124,270

Financialassets–cashflowsrealisable

Cashandcashequivalents 1,541,546 1,206,008 1,541,546 1,206,008

Tradeandotherreceivables 269,056 246,471 269,056 246,471

Totalfinancialassets–cashflowsrealisable 1,810,602 1,452,479 1,810,602 1,452,479

Creditrisk

Creditriskreferstotheriskthatacounterpartywilldefaultonitscontractualobligationsresultinginafinanciallosstothecompany.

Creditriskarisesfromcashandcashequivalents,derivativefinancialinstrumentsanddepositswithbanksandfinancialinstitutions,aswellascreditexposuretowholesaleandretailcustomers,includingoutstandingreceivablesandcommittedtransactions.

Thecompanyhasadoptedapolicyofonlydealingwithcreditworthycounterpartiesasameansofmitigatingtheriskoffinanciallossfromdefaults.

TheBoardreceivesmonthlyreportssummarisingtheturnover,tradereceivablesbalanceandagingprofileofeachofthekeycustomersindividuallyandtheCompany’sothercustomersanalysedbyindustrysectoraswellasalistofcustomerscurrentlytransactingonaprepaymentbasisorwhohavebalancesinexcessoftheircreditlimits.


Page 32


14.FinancialRiskManagement(continued)Managementconsidersthatallthefinancialassetsthatarenotimpairedforeachofthereportingdatesunderreviewareofgoodscreditquality,includingthosethatarepastdue.

Thecreditriskofliquidfundsandothershorttermfinancialassetsisconsiderednegligible,sincethecounterpartiesarereputablebankswithhighqualityexternalcreditratings.

TheCompanyhasnosignificantconcentrationofcreditriskwithrespecttoanysinglecounterpartyorgroupofcounterparties.Theclassofassetsdescribeas‘tradeandotherreceivables’isconsideredtobethemainsourceofcreditriskrelatedtothecompany.

Sensitivityanalysis

Therearecurrentlynointerestbearingloansatvariableinterestrates.

15. RemunerationofAuditors

2016 2015

$ $

- auditingorreviewingthefinancialstatements 15,000 4,000

16. Contingencies IntheopinionoftheDirectors,theCompanydidnothaveanycontingenciesat30June2016(30June2015:None).

17. InvestmentinAssociate

Principalplaceofbusiness/CountryofIncorporation

PercentageOwned(%)*

PercentageOwned(%)*

2016 2015

NewFrontierHoldingsLLC1 USA 20 -

1TheCompanyacquired20%interestinNewFrontierHoldings.Atthereportingdate,thefairvalueofthenetassetsoftheinvesteewas$1,413,338andpaid-upcapital$1,413,338.00.

$Considerationpaid 269,000Shareofnetassetsacquired 269,000


Page 33


18. RelatedParties(a) TheCompany’smainrelatedpartiesareasfollows:

(i) Entitiesexercisingcontroloverthecompany:

Theultimateparententity,whichexercisescontroloverthecompany,isiQnovateLtdwhichisincorporatedinAustraliaandowns70.59%ofFarmaForceLimited.

InrelationtoiQnovateLtd,Dr.GeorgeSyrmalisisCEO,Chairman,ExecutiveDirectorandasubstantialshareholderandMr.ConTsigounisisExecutiveDirectorandasubstantialshareholderofiQnovateLtd.

(ii) Keymanagementpersonnel:

Anyperson(s)havingauthorityandresponsibilityforplanning,directingandcontrollingtheactivitiesoftheentitydirectlyorindirectly,includinganydirector(whetherexecutiveorotherwise)ofthatentityareconsideredkeymanagementpersonnel.

Keymanagementpersonnelremunerationincludedwithinemployeeexpensesfortheyearisshownbelow:

2016 2015

$ $

Short-termemployeebenefits 139,003 168,000Post-employmentbenefits 10,118 15,960

149,121 183,960

(b) Transactionwithrelatedparties

Transactionsbetweenrelatedpartiesareonnormalcommercialtermsandconditionsnomorefavourablethanthoseavailabletootherpartiesunlessotherwisestated.

Thefollowingtransactionsoccurredwithrelatedparties:

BalanceOutstanding

Revenue-officesharing

costs

Expenditure-officesharing

costs

Companysecretarial

feeConsultingfee Othertransactionand

administrativecosts*Owedbythecompany

Owedtoothercompany

2016 $ $ $ $ $ $ $

Parent 18,182 573,232 - - 229,324* - -Relatedparties 18,182 118,588 36,000 30,811 975,693* 5,342 28,707

2015

Parent 627,705 - - - - 940 -

Associates - 40,000 18,000 350,958 - 6,392 17,600

*TransactionsdescribedasOthertransactionscompriseof:Recruitmentfees(parent) $229,324Underwritingfees(relatedparties) $150,000Capitalraisingfees(relatedparties) $825,693


Page 34


19. CashFlowInformation(a) Reconciliationofresultfortheyeartocashflowsfromoperatingactivities

Reconciliationofnetincometonetcashprovidedbyoperatingactivities:

2016 2015

$ $

Lossfortheyear (3,799,018) (2,051,222)Cashflowsexcludedfromprofitattributabletooperatingactivities

IPOlistingcost 82,754 -Non-cashflowsinprofit:

-depreciation 38,538 19,584-netgainondisposalofproperty,plantandequipment - (27)-interestonconvertiblenotes - 187,401

Changesinassetsandliabilities,netoftheeffectsofpurchaseanddisposalofsubsidiaries:

-(increase)/decreaseintradeandotherreceivables (74,841) (265,467)-(increase)indeferredtaxassets -

-(decrease)indeferredtaxliabilities -

-increase/(decrease)inincomeinadvance (149,579) 149,579-increase/(decrease)intradeandotherpayables 313,848 47,871

Netcashusedinoperatingoperations (3,588,298) (1,912,281)

20. SegmentreportingTheCompanyhasidentifieditsoperatingsegmentbasedoninternalreportingthatisreviewedandusedbytheCOOinassessingtheperformanceofthesegment.

The operating segment is identified by management based on the nature of services provided. TheservicesprovidedbyFarmaForceare contract saleswith thebusiness representinga strategicpositionthatservesauniquesegmentofthemarketinAustralia.

AllrevenuesdisclosedintheFinancialStatementsarefromexternalcustomersincurrentyearandprioryear.

21. EventsOccurringAftertheReportingDateNomattersorcircumstanceshavearisensincetheendofthefinancialyearwhichsignificantlyaffectedormaysignificantlyaffecttheoperationsoftheCompany,theresultsofthoseoperations,orthestateofaffairsoftheCompanyinfuturefinancialyears.

22. CompanyDetailsTheregisteredofficeofandprincipalplaceofbusinessofthecompanyis:

FarmaForceLimited

Level3,222ClarenceStreet

SYDNEYNSW2000


Page 35

Directors’DeclarationThedirectorsoftheCompanydeclarethat:

1. the financial statements and notes for the year ended 30 June 2016 are in accordance with theCorporationsAct2001and:

a. comply with Accounting Standards, which, as stated in accounting policy note 2 to the financialstatements, constitutes explicit and unreserved compliance with International Financial ReportingStandards(IFRS);and

b. giveatrueandfairviewofthefinancialpositionandperformanceoftheCompany.

2. Inthedirector’sopinion,therearereasonablegroundstobelievethattheCompanywillbeabletopayitsdebtsasandwhentheybecomedueandpayablewiththecontinuingsupportofcreditors.

ThisdeclarationismadeinaccordancewitharesolutionoftheBoardofDirectors.

Director:

GeorgeElias

Datedthis29thdayofAugust2016


Page 36

IndependentAuditReporttothemembersofFarmaForceLimited ACN167748843

ReportontheFinancialReport

WehaveauditedtheaccompanyingfinancialreportofFarmaForceLimited,whichcomprisestheconsolidatedstatementoffinancialpositionasat30June2016,theconsolidatedstatementofcomprehensiveincome,consolidatedstatementofchangesinequityandconsolidatedstatementofcashflowsfortheyearendedthatdate,asummaryofsignificantaccountingpolicies,otherexplanatorynotesandthedirectors'declarationofthecompanyandtheentitiesitcontrolledattheyear’sendorfromtimetotimeduringthefinancialyear.

Directors'ResponsibilityfortheFinancialReport

ThedirectorsofthecompanyareresponsibleforthepreparationandfairpresentationofthefinancialreportinaccordancewithAustralianAccountingStandards(includingtheAustralianAccountingInterpretations),andtheCorporationsAct2001.Thisresponsibilityincludes:designing,implementingandmaintaininginternalcontrolrelevanttothepreparationandfairpresentationofthefinancialreportthatisfreefrommaterialmisstatement,whetherduetofraudorerror.InNote1,thedirectorsalsostate,inaccordancewithAccountingStandardAASB101:PresentationofFinancialStatements,thatthefinancialstatementscomplywithInternationalFinancialReportingStandards(IFRS).

Auditor'sResponsibility

Ourresponsibilityistoexpressanopiniononthefinancialreportbasedonouraudit.WeconductedourauditinaccordancewithAustralianAuditingStandards.TheseAuditingStandardsrequirethatwecomplywithrelevantethicalrequirementsrelatingtoauditengagementsandplanandperformtheaudittoobtainreasonableassurancewhetherthefinancialreportisfreefrommaterialmisstatement.

Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancialreport.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialreport,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalcontrolrelevanttothecompany'spreparationandfairpresentationofthefinancialreportinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheentity’sinternalcontrol.Anauditalsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesmadebythedirectors,aswellasevaluatingtheoverallpresentationofthefinancialreport.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.

Independence

Inconductingouraudit,wehavecompliedwiththeindependencerequirementsoftheCorporationsAct2001.WeconfirmthattheindependencedeclarationrequiredbytheCorporationsAct2001,providedtotheDirectorsofIqnovateLimitedwouldbeinthesametermsifprovidedtotheDirectorsasatthedateofthisauditor'sreport.


Page 37

INDEPENDENTAUDITOR'SREPORTTOTHEMEMBERSOFFARMAFORCELIMITED

ACN167748843

Auditor'sOpinion

Inouropinion:

(a) thefinancialreportofFarmaForceLimitedisinaccordancewiththeCorporationsAct2001,including:

(i) givingatrueandfairviewoftheconsolidatedentity’sfinancialpositionasat30June2016andofitsperformancefortheyearendedonthatdate;and

(ii) complyingwithAustralianAccountingStandards(includingtheAustralianAccountingInterpretations)andtheCorporationsRegulations2001.

(b) thefinancialreportalsocomplieswithInternationalFinancialReportingStandardsasdisclosedinNote1.

ReportontheRemunerationReport

WehaveauditedtheremunerationReportincludedinthedirectors’reportfortheyearended30June2016.ThedirectorsofthecompanyareresponsibleforthepreparationandpresentationoftheRemunerationReportinaccordancewithsection300AoftheCorporationsAct2001.OurresponsibilityistoexpressanopinionontheRemunerationReportbasedonourauditconductedinaccordancewithAustralianAuditingStandards.

Auditor’sOpinion

InouropiniontheRemunerationReportofFarmaForceLimitedfortheyearended30June2016,complieswithsection300AoftheCorporationsAct2001.

FORTUNITYASSURANCE

TRDavidson

Partner

Dated:31August,2016


Page 38

ASXAdditionalInformation

AdditionalinformationrequiredbytheAustralianStockExchangeLtdandnotshownelsewhereinthisreportisasfollows.Theinformationiscurrentasat28July2016:

a) DistributionofequitysecuritiesOrdinarysharecapital

127,500,980fullypaidordinarysharesareheldby460individualshareholders.

Allissuedordinarysharescarryonevotepershareandcarrytherightstodividends.

Thenumberofshareholders,bysizeofholding,ineachclassare:

Fullypaidordinaryshares

1–1,000 1

1,001–5,000 11

5,001–10,000 152

10,001–100,000 207

100,001andover 89

460

b) SubstantialShareholders

FullyPaid

Shareholder Number Percentage

iQnovateLtd 90,000,000 70.59%


Page 39

ASXAdditionalInformation(continued)

c) Twentylargestholdersofquotedequitysecurities FullyPaid

OrdinaryShareholders Number Percentage

iQnovateLtd 90,000,000 70.59

PriorityOneGroupPtyLtd 2,775,000 2.18

BASIMFinancePtyLtd 1,500,000 1.18

iQ3CorpLtd 1,275,009 1.00

ColinJ.OdamsPtyLtd 1,000,000 0.78

AchellesNomineesPtyLtd 930,000 0.73

MrYaochangWang 844,333 0.66

FranzeHoldingsPtyLtd 833,333 0.65

JenniferEllenStapleton 750,000 0.59

AsgardCapitalManagementLtd 667,000 0.52

MrJamesSimos&MrsChristinaSimos 535,890 0.42

PharmlouPtyLtd 500,000 0.39

BartlemPtyLtd 500,000 0.39

SiJiaCorpPtyLtd 500,000 0.39

WadePeterBurns&RebeccaLouiseBurns 500,000 0.39

DanielMorato&SallyMorato 500,000 0.39

LienPtyLtd 495,000 0.38

KarantziasInvestmentsPtyLtd 451,000 0.35

MrMin-ChungYu 407,500 0.32

MrZhenyuHe 375,000 0.29

Total 105,339,065 82.62

d) Consistencywithbusinessobjectives

InaccordancewithASXListingRule4.10.19theCompanystatesthatithasusedthecashandassetsinaformreadilyconvertibletocashthatithadatthetimeofadmissioninawayconsistentwithitsbusinessobjectives.TheCompanybelieves ithasuseditscashinaconsistentmannertowhichwasdisclosedundertheProspectusdated10August2015.

e) RestrictedSecuritiesEscrowedSharesAsatthedateofthisreport,91,575,010oftheCompany’sordinarysharesareclassifiedasrestrictedandaresubjecttorestrictionsonsaleandotherdealingsforaperiodof24monthsfromthedateofofficialquotation.The24monthperiodwillexpireon27October2017.LoyaltyOptionsAsatthedateofthisreport,theCompanyhas19,302,500Loyaltyoptionsonissueexercisableat20ceachbetween24to36monthsafterthedateofadmissionoftheCompany’ssharestotheOfficialListoftheASX.Outoftheseoptions,900,000aresubjecttorestrictionsonsaleandotherdealingsforaperiodof24monthsfromofficialquotationoftheCompany’ssharesontheASX.

Level 3 222 Clarence St, Sydney NSW Australia 2000

Tel: +61 2 8239 5400 Fax: +61 2 8362 9547 [email protected] farmaforce.com.au

farmaforce limited fy 2016 final(v7 clean) · 30.06.2016 · farmaforce limited a.c.n. 167 748 843...

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