half year report to the australian securities …appendix 4d half year report adalta limited page 1...

Appendix 4D Half Year Report

AdAlta Limited

Appendix 4D

Half Year Report

to the Australian Securities Exchange

Part 1

Name of Entity EPAT Technologies Limited (formerly Minquest Limited)

ABN 21 146 035 127

Half Year Ended 31 December 2016

Previous Corresponding Reporting

Period Half Year Ended 31 December 2015

Part 2 – Results for Announcement to the Market

$’000

Percentage

increase

/(decrease) over

previous

corresponding

period

Revenue from continuing operations 25 777%

Loss from continuing activities after tax attributable to

members (6,978) 8,270%

Net loss attributable to members (6,978) 8,270%

Dividends (distributions) Amount per security Franked amount per security

Final Dividend Nil Nil

Interim Dividend Nil Nil

Record date for determining entitlements to the

dividends (if any)

Not Applicable

Brief explanation of any of the figures reported above necessary to enable the figures to be

understood:

The Company completed the acquisition of Electronic Pain Assessment Technologies (EPAT) Pty Ltd,

undertook a change of nature of business and completed a capital raising of $4.7m. Refer to the

Review of Operations contained in the Directors’ Report which forms part of the attached Interim

Financial Report for details.

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AdAlta Limited

Part 3 – Contents of ASX Appendix 4D

Section Contents

Part 1 Details of entity, reporting period

Part 2 Results for announcement to the market

Part 3 Contents of ASX Appendix 4D

Part 4 Commentary on results

Part 5 Details relating to dividends

Part 6 Net tangible assets per security

Part 7 Details of entities over which control has been gained or lost

Part 8 Details of associates and joint venture entities

Part 9 Information on audit or review

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AdAlta Limited

Part 4 – Commentary on Results

Refer to the Review of Operations contained in the Directors’ Report which forms part of the attached

Interim Financial Report for details.

Part 5 – Details Relating to Dividends

Date the dividend is payable N/A

Record date to determine entitlement to the dividend N/A

Amount per security N/A

Total dividend N/A

Amount per security of foreign sourced dividend or

distribution

N/A

Details of any dividend reinvestment plans in operation N/A

The last date for receipt of an election notice for

participation in any dividend reinvestment plans

N/A

Part 6 – Net Tangible Assets per Security

2016 2015

Net tangible asset backing per ordinary security 0.52 cents 1.07 cents

Part 7 – Details of Entities Over Which Control has been Gained or Lost

Name of entity (or group of entities) Electronic Pain Assessment

Technologies (EPAT) Pty Ltd

Date control gained 23 September 2016

Contribution of the controlled entity (or group of entities)

to the profit/(loss) from ordinary activities during the

period, from the date of gaining control

($223,929)

Profit (loss) from ordinary activities of the controlled

entity (or group of entities) for the whole of the previous

corresponding period

($285,073)

Contribution to consolidated profit/(loss) from ordinary

activities from sale of interest leading to loss of control N/A

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AdAlta Limited

Name of entity (or group of entities) lost Merah African Exploration Limited, Merah West Africa Limited, Oresearch Limited, Merah Resources Canada Limited

Date control lost 31 August 2016

Contribution of the controlled entity (or group of entities)

to the profit/(loss) from ordinary activities during the

period, from the date of gaining control

Nil

Profit (loss) from ordinary activities of the controlled

entity (or group of entities) for the whole of the previous

corresponding period

Nil

Contribution to consolidated profit/(loss) from ordinary

activities from sale of interest leading to loss of control N/A

Part 8 – Details of Associates and Joint Venture Entities

Ownership Interest Contribution to net profit/(loss)

2016

%

2015

%

2016

$A’000

2015

$A’000

Name of entity N/A N/A N/A N/A

Associates

Joint Venture Entities

Aggregate Share of Losses

Part 9 – Audit/Review Status

This report is based on accounts to which one of the following applies:

(Tick one)

The accounts have been audited

The accounts have been subject to review

The accounts are in the process of being

audited or subject to review The accounts have not yet been audited or

reviewed

If the accounts have not yet been audited or subject to review and are likely to be subject to

dispute or qualification, a description of the likely dispute or qualification:

Not applicable

If the accounts have been audited or subject to review and are subject to dispute or qualification,

a description of the dispute or qualification:

Not applicable

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AdAlta Limited

Attachments Forming Part of Appendix 4D

Attachment No. Details

1 Interim Financial Report

Signed by Company Secretary

Ian Hobson

Dated: 22 February 2017

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ePATTechnologiesLimited(formerlyMinQuestLimited)ABN21146035127

Halfyearreportforthehalf-yearended

31December2016

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ePATTechnologiesLimited(formerlyMinQuestLimited)

CorporatedirectoryBoardofDirectorsMrJohnMurray Non-ExecutiveChairman MrPhilipDaffas ManagingDirectorMrAdamDavey Non-ExecutiveDirectorMrRossHarricks Non-ExecutiveDirectorCompanySecretaryMrIanHobson

RegisteredOffice PrincipalPlaceofBusinessSuite5,95HayStreet Suite401,35LimeStreetSubiaco,WesternAustralia6008 SydneyNSW2000Tel: +61893888290Fax: +61893888256PostalAddressPOBox226Subiaco,WesternAustralia6904WebsiteWebsite:www.epattechnologies.comAuditorsBDOAuditPtyLtd

ShareRegistryBoardroomPtyLtdGrosvenorPlaceLevel12,225GeorgeStreetSydney,NSW2000Tel: +1300737760Fax: +61292909655StockExchangeAustralianSecuritiesExchange20BridgeStreetSydney,NSW2000ASXCodeEPTF

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Halfyearreportforthehalf-yearended31December2016

Contents

Directors’report………………………………………………………………………………………………….…….…… 1

Auditor’sindependencedeclaration…………………………………………………………………….….…….. 5

Independentauditor’sreviewreport…………………………………………………………………..….……. 6

Directors’declaration…………………………………………………………………………………………………….. 8

Consolidatedstatementofprofitorlossandothercomprehensiveincome………… 9

Consolidatedstatementoffinancialposition…………………………………. 10

Consolidatedstatementofchangesinequity……………………………………………………………. 11

Consolidatedstatementofcashflows………………………………………………………………………. 12

Condensednotestothefinancialstatements…………………………………………………………………. 13

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1

Directors’reportThe directors of ePAT Technologies Limited formerlyMinQuest Limited (“ePAT Technologies” or “theCompany”) submit herewith the financial report of the Company and its subsidiary (“Group” or“ConsolidatedEntity”)forthehalf-yearended31December2016.InordertocomplywiththeprovisionsoftheCorporationsAct2001,thedirectorsreportasfollows:NamesofDirectorsThenamesof thedirectorsof theCompanyduringor since theendof thehalf-yeararenotedbelow.Directorswereinofficefortheentireperiodunlessotherwisestated:MrJohnMurray(appointed30September2016)MrPhilipDaffas(appointed30September2016)MrRossHarricks(appointed30September2016)MrAdamDaveyMrPaulNiardone(resigned30September2016)MrJeremyRead(resigned30September2016)MrFrankTerranova(resigned5September2016)OperatingresultsOn 23 September 2016, the Company completed the acquisition of Electronic Pain AssessmentTechnologies (EPAT) Pty Ltd (“ePAT”). For accounting purposes, ePAT has been identified as theaccounting acquirer of the consolidated group. The accompanying consolidated financial statementsrepresentacontinuationofePAT’sfinancialstatements.TheconsolidatedresultsreflectafullperiodofePATplus ePATTechnologies from thedateof acquisition, 23 September2016 to31December2016.Thecomparativeperiodresultsarestatedunderthe“Company”columnsfor2015butreflectePAT.The loss of the Group for the half-year ended 31 December 2016, after accounting for income taxbenefit, amounted to $6,977,675. The loss after tax for ePAT was $83,365 for the half-year ended31December2015. The half-year ended 31 December 2016 operating results are attributed to thefollowing:• Corporaterestructurecost(non-cash)of$4,574,424followingtheacquisition(31December2015:$

nil);• Share based payments in respect of options issued to Directors of $1,728,066 (non-cash) (31

December2015:$nil);and• Corporateandadministrationexpensesof$476,673(31December2015:$22,673).

Reviewofoperations–pre-acquisition

• On18July2016,theCompanyannouncedthatithadcompletedanissueof300,000convertiblenotestoraise$300,000toassistinmeetingthecostsoftheproposedacquisitionofePATandtoprovideworkingcapital.Theconvertiblenoteswereconvertedtoordinarysharesataconversionpriceof$0.02pershareon26September2016.

• On18July2016,theCompanyadvisedPacificRidgeExplorationthatithadelectedtonotmakeanyfurtherownershippaymentsundertheFyreLakefarminjointventureagreement,effectivelybringingthatagreementtoanend.TheCompanyfullyimpairedallcapitalisedexplorationexpenditurerelatingtotheFyreLakeProjectintheyearended30June2016.

• On25July2016theCompanyexecutedasharepurchaseagreementfortheacquisitionofone

hundredpercentoftheissuedcapitalofePAT.Thesignificanttermsoftheagreementwere:

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- Completionofthesaleandpurchaseof100%oftheissuedcapitalofePATistooccurona

dateandtimeagreedbytheparties,followingthesatisfactionorwaiverofthelatestconditionprecedenttobesatisfiedorwaived.Theconditionsprecedentswere:

§ theCompanyobtainingallnecessaryShareholderapprovals;

§ theCompanyobtainingconditionalapprovalforthere-quotationoftheCompany’sSharesfollowingCompletionoftheAcquisitionandre-compliancewithChapters1and2oftheListingRules;

§ theCompanydivestingitsentirelegalandbeneficialinterestsinitsmineralprojects;

§ completionofacapitalconsolidationbytheCompanyontermstobemutuallyagreed;

§ theCompanycompletingacapitalraisingofatleast$4,000,000;

§ CurtinUniversitysellingallofitsePATshares;and

§ totheextentrequiredbyASXortheListingRules,eachpersonenteringintoarestrictionagreementimposingsuchrestrictionsasmandatedbytheListingRulesinrespectofanyothersecuritiestobeissuedinrelationtothetransaction.

- InexchangefortheCompanyacquiringePAT,theCompanyagreedtoissuethefollowingconsiderationtoePATshareholders:

(i) 213,219,616sharestobeissuedatcompletion;and

(ii) $1,000,000worthofsharestobeissuediftheCompanyannouncesthateitherofthefollowingmilestoneshavebeenmetwithin12monthsfromthedateofcompletionoftheacquisition:

(A) RegulatoryapprovalhavingbeenreceivedtoenablecommercialuseoftheePATAppinAustralia,theUnitedStatesofAmericaorEurope.(Inthiscontext,“RegulatoryApproval”meansapprovalbytheTherapeuticGoodsAdministrationofAustralia,FoodandDrugAdministrationoftheUnitedStates,oraCEmarkfromtherelevantauthorityinEurope);or

(B) theexecutionofabindinglicenceagreementtolicencetheePATAppto:

§ oneormoreresidentialagedcarefacilityownersmanagingintotalinexcessof150beds;

§ oneormoremedicalclinicswhichserviceintotalinexcessof2,000patientsperyear;

§ ametropolitanhospitalwithinexcessof200beds;

(eachan"EndUser”)or

§ aglobaldistributionpartnerwithmultipleEndUsersasexistingcustomers.

• On25August2016,theCompanyissuedaProspectusforthepurposesofraisingbetween$4,000,000and$5,750,000throughtheissueofupto287,500,000fullypaidordinarysharesatanissuepriceof$0.02pershareandsatisfyingtherequirementsofChapters1and2oftheASXListingRules.TheofferundertheProspectuswasunderwrittentotheamountof$4,500,000.

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• On31August2016,anExtraordinaryGeneralMeetingoftheCompany’sshareholdersapprovedanumberofresolutionsrelatingtotheproposedacquisitionofePATandrelatedmattersassummarisedbelow:- theCompanychangingthenatureandscaleofitsactivitiesasaresultoftheacquisition.

Uponcompletionoftheacquisition,theCompanywilleffectivelychangefromamineralexplorertoahealthandtechnologycompany.

- theCompanychangingitsnamefrom"MinQuestLimited"to"ePATTechnologiesLimited",witheffectfromthedatethatASICaltersthedetailsoftheCompany'sregistration.

- theCompanyconsolidatingitssharesonthebasisofeverysevensharesbeingconsolidatedintofourShares.

- theCompanyissuingtheconsiderationsharestotheePATshareholdersinconsiderationfortheacquisitionof100%ofthesharesofePAT.

- theCompanyissuingupto287,500,000sharestothepublicunderaProspectustoraiseupto$5,750,000.

- theCompanyissuingupto45,000,000UnderwriterOptionstotheUnderwriters(ortheirnominees).

- theelectionofMrJohnMurray,MrRossHarricksandMrPhilipDaffasasDirectorsoftheCompanysubjecttothecompletionoftheacquisition.

• On5September2016MrFrankTerranovaresignedasdirectoroftheCompanyandMrPaulNiardoneassumedtheroleofNon-ExecutiveChairman.

• On7September2016theCompanyannouncedthattheconsolidationoftheCompany’scapitalonthebasisofeverysevensharesbeingconsolidatedintofourshareshadbeencompleted.

• On16September2016theCompanywasadvisedbytheASXthattheCompany’sapplicationforrelistingoftheCompany’sshareshadbeenconditionallyapproved.

• On16September2016theofferundertheProspectusdated25August2016closedwiththeCompanyreceivingapplicationsfor236,625,000sharestoraise$4,732,500beforetransactioncosts.Theshareswereallottedon27September2016.

Reviewofoperations–post-acquisition

• On23September2016,theCompanywasadvisedthatCurtinUniversityhadcompletedthesaleofitsshareholdinginePAT.Thisrepresentedthefulfilmentofthefinalconditionprecedentunderthesharepurchaseagreementdated25July2016.

• On23September2016and26September2016,theCompanycompletedtheallotmentofthevariousequitysecuritiesrequiredasaconsequenceoftheacquisitionofePAT.

• On27September2016,theCompanychangeditsnametoePATTechnologiesLtdandallottedthesharespursuanttotheprospectus.

• On30September2016,JohnMurraywasappointednon-executivechairman,PhilipDaffaswasappointedmanagingdirector,RossHarrickswasappointednon-executivedirectorandIanHobsonwasappointedcompanysecretary.

• On30September2016JeremyReadandMrPaulNiardoneresignedasdirectors.

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• On7October2016,theCompanyissued2,475,000at$0.02pershareinlieuofremunerationtoStephenKelly,theformercompanysecretary.MrKellyresignedascompanysecretaryonthesameday.

• On21December2016,theCompanyissued90,198,155optionsexercisableat2centsandexpiring24November2019tothedirectorsasapprovedbyshareholdersattheannualgeneralmeetingon23November2016.

OverviewofGroupStrategyTheGroup’sstrategyistocontinuetodevelopit’smobileapplication(ePATApp)whichusescamerasinsmartphonesandtabletstocaptureabriefvideooftheperson,whichisanalysedinrealtimeusingfacialrecognition software to detect the presence of facial micro-expressions that are indicative of thepresenceofpain.

This data is then combined with other indicators of pain, such as vocalisations, behaviours andmovementscapturedthroughtheePATApptocalculateapainseverityscore.

Duetoitseaseofuseanditsreproducibility,itisintendedthattheePATAppwillbeabletobeusedinthefirstinstancetodetectandmeasureaperson’spain,andthenfurthermeasurementscanbeusedtomonitortheeffectivenessofpainmanagementprovidedtotheperson.

TheePATApp isbeingdevelopedandwillberolledoutglobally in twophases: first, theePATAppforDementia forpersonswhohave lost theability tocommunicatewiththeircarers,andthesecond, theePATAppforChildrenwhohavenotyetlearnttospeak.

SubsequenteventsTherehasnotbeenanymatterorcircumstancethathasarisensincetheendofthehalf-yearthathassignificantly affected, ormay significantly affect, the operations of the Company, the results of thoseoperations,orthestateofaffairsoftheCompanyinfuturefinancialyears.

Auditor’sindependencedeclarationTheauditor’sindependencedeclarationisincludedonpage5ofthehalf-yearreport.

Signed inaccordancewitha resolutionofdirectorsmadepursuant to s.306(3)of theCorporationsAct2001.

Onbehalfofthedirectors

JohnMurrayChairman22February2017Sydney,NSWF

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ePAT Technologies Limited (formerly MinQuest Limited)

Level 10, 12 Creek St Brisbane QLD 4000 GPO Box 457 Brisbane QLD 4001 Australia

Tel: +61 7 3237 5999 Fax: +61 7 3221 9227 www.bdo.com.au

BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation, other than for the acts or omissions of financial services licensees.

DECLARATION OF INDEPENDENCE BY C R JENKINS TO THE DIRECTORS OF EPAT TECHNOLOGIES

LIMITED

As lead auditor for the review of ePAT Technologies Limited for the half-year ended 31 December

2016, I declare that, to the best of my knowledge and belief, there have been:

1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in

relation to the review; and

2. No contraventions of any applicable code of professional conduct in relation to the review.

This declaration is in respect of ePAT Technologies Limited and the entities it controlled during the

period.

C R Jenkins

Director

BDO Audit Pty Ltd

Brisbane, 22 February 2017

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Auditor's Independence Declaration

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Level 10, 12 Creek St Brisbane QLD 4000 GPO Box 457 Brisbane QLD 4001 Australia

Tel: +61 7 3237 5999 Fax: +61 7 3221 9227 www.bdo.com.au


INDEPENDENT AUDITOR’S REVIEW REPORT

To the members of ePAT Technologies Limited

Report on the Half-Year Financial Report

We have reviewed the accompanying half-year financial report of ePAT Technologies Limited, which

comprises the consolidated statement of financial position as at 31 December 2016, the consolidated

statement of profit or loss and other comprehensive income, the consolidated statement of changes in

equity and the consolidated statement of cash flows for the half-year ended on that date, notes

comprising a statement of accounting policies and other explanatory information, and the directors’

declaration of the consolidated entity comprising the company and the entities it controlled at the

half-year’s end or from time to time during the half-year.

Directors’ Responsibility for the Half-Year Financial Report

The directors of the company are responsible for the preparation of the half-year financial report that

gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act

2001 and for such internal control as the directors determine is necessary to enable the preparation of

the half-year financial report that is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We

conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review

of a Financial Report Performed by the Independent Auditor of the Entity, in order to state whether,

on the basis of the procedures described, we have become aware of any matter that makes us believe

that the half-year financial report is not in accordance with the Corporations Act 2001 including: giving

a true and fair view of the consolidated entity’s financial position as at 31 December 2016 and its

performance for the half-year ended on that date; and complying with Accounting Standard AASB 134

Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of ePAT

Technologies Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to

the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible

for financial and accounting matters, and applying analytical and other review procedures. A review is

substantially less in scope than an audit conducted in accordance with Australian Auditing Standards

and consequently does not enable us to obtain assurance that we would become aware of all significant

matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Independence

In conducting our review, we have complied with the independence requirements of the Corporations

Act 2001. We confirm that the independence declaration required by the Corporations Act 2001, which

has been given to the directors of ePAT Technologies Limited, would be in the same terms if given to

the directors as at the time of this auditor’s review report.

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Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us

believe that the half-year financial report of ePAT Technologies Limited is not in accordance with the

Corporations Act 2001 including:

(i) Giving a true and fair view of the consolidated entity’s financial position as at 31 December 2016

and of its performance for the half-year ended on that date; and

(ii) Complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations

Regulations 2001.

BDO Audit Pty Ltd

C R Jenkins

Director

Brisbane, 22 February 2017

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Directors’declarationThedirectorsdeclarethat:(a) inthedirectors’opinion,therearereasonablegroundstobelievethattheCompanywillbeableto

payitsdebtsasandwhentheybecomedueandpayable;and(b) in thedirectors’ opinion, the attached financial statements andnotes thereto are in accordance

withtheCorporationsAct2001,includingcompliancewithaccountingstandardAASB134‘InterimFinancialReporting’andgivingatrueandfairviewofthefinancialpositionat31December2016andperformanceoftheConsolidatedEntityfortheperiodendedonthatdate.

Signedinaccordancewitharesolutionofthedirectorsmadepursuanttos.303(5)oftheCorporationsAct2001.Onbehalfofthedirectors JohnMurrayChairman22February2017Sydney,NSW

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Consolidated statement of profit or loss and othercomprehensive income for thehalf-year ended31December2016

Consolidated Company

Note31Dec2016

$31Dec2015

$Continuingoperations Revenue 3 5,061 2,265Otherincome 4 20,049 598Researchanddevelopmentexpenses (223,622) (63,555)Corporateadministrationexpenses (476,673) (22,673)Corporaterestructureexpenses 8 (4,574,424) -Sharebasedpaymentexpenses (1,728,066) -Lossbeforeincometax (6,977,675) (83,365) Incometaxbenefit - -Loss for the period attributable to Owners of EPAT TechnologiesLimited (6,977,675) (83,365) Othercomprehensiveincome,netofincometax Itemsthatwillnotbereclassifiedsubsequentlytoprofitorloss - -Itemsthatmaybereclassifiedsubsequentlytoprofitorloss - -Othercomprehensiveincomefortheperiod,netofincometax - -Totalcomprehensivelossfortheperiod (6,977,675) (83,365)Lossandtotalcomprehensivelossattributableto: OwnersofEPATTechnologiesLimited (6,977,675) (83,365) Losspershare: Basicanddiluted(centspershare) 5 (0.0) (0.1)Condensednotestothefinancialstatementsareincludedonpages13to24.

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Consolidated statement of financial position as at 31December2016

Consolidated Company

Note 31Dec2016

$30Jun2016

$Currentassets Cashandcashequivalents 3,553,510 75,079Tradeandotherreceivables 51,976 1,782Totalcurrentassets 3,605,486 76,861 Currentliabilities Tradeandotherpayables 117,885 8,728Provisions 1,687 -Totalcurrentliabilities 119,572 8,728Totalliabilities 119,572 8,728Netassets 3,485,914 68,133 Equity Issuedcapital 6 8,502,533 357,143Reserves 7 2,250,066 -Accumulatedlosses (7,266,685) (289,010)Totalequity 3,485,914 68,133Condensednotestothefinancialstatementsareincludedonpages13to24.

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Consolidated statement of changes in equity for the half-yearended31December2016

Issuedcapital Reserves

Accumulatedlosses Total

Company $ $ $ $Balanceat1July2015 528,571 - (131,149) 397,422Lossfortheperiod - - (83,365) (83,365)Othercomprehensiveincome - - - -Totalcomprehensivelossfortheperiod - - - 314,057Transactionswithownersintheircapacityasowners: Sharecancellation (171,428) - - (171,428)Balanceat31December2015 357,143 - (214,514) 142,629 Consolidated Balanceat1July2016 357,143 - (289,010) 68,133Lossfortheperiod - - (6,977,675) (6,977,675)Othercomprehensiveincome - - - -Totalcomprehensivelossfortheperiod (6,977,675) (6,977,675)Issueofordinaryshares(refertonote6) 9,224,069 - - 9,224,069Shareissuecosts(refertonote6) (1,078,679) - - (1,078,679)Recognitionofsharebasedpayments - 2,250,066 - 2,250,066Balanceat31December2016 8,502,533 2,250,066 (7,266,685) 3,485,914Condensednotestothefinancialstatementsareincludedonpages13to24.

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Consolidated statementof cash flows for thehalf-yearended31December2016

Consolidated Company Half-yearended

Note 31Dec2016

$31Dec2015

$Cashflowsfromoperatingactivities Paymentstosuppliersandemployees (679,471) (86,777)Interestreceived 5,061 2,265Rebatesandgrantsreceived 20,049 598Netcashusedinoperatingactivities (654,361) (83,914) Cashflowsfrominvestingactivities Cashfromacquisitionofsubsidiary 8 18,243 -Netcashprovidedbyinvestingactivities 18,243 - Cashflowsfromfinancingactivities Proceeds/(repayment)fromissue/(buy-back)ofshares 4,732,500 (171,428)(Payment)/refundofshareissuecosts (617,951) -Netcash(usedin)/providedbyfinancingactivities 4,114,549 (171,428) Netincreaseincashandcashequivalents 3,478,431 Cashandcashequivalentsatthebeginningoftheperiod 75,079 345,405 Cashandcashequivalentsattheendoftheperiod 3,553,510 90,063Condensednotestothefinancialstatementsareincludedonpages13to24

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Condensednotestothefinancialstatementsforthehalf-yearended31December20161. Significantaccountingpolicies

StatementofcomplianceThehalf-yearfinancialreportisageneralpurposefinancialreportpreparedinaccordancewiththeCorporations Act 2001 and AASB 134 ‘Interim Financial Reporting’. The Company is a for-profitentityforfinancialreportingpurposesunderAustralianAccountingStandards.Thehalf-yearreportdoesnotincludenotesofthetypenormallyincludedinanannualfinancialreportandshallbereadinconjunctionwithannual financial statementsof theCompany for theyearended30 June2016togetherwithanypublicannouncementsmadeduringthefollowinghalfyear.

Thehalf-yearfinancialreportwasauthorisedforissuebythedirectorson22February2017.

BasisofpreparationThefinancialstatementshavebeenpreparedonthebasisofhistoricalcost.Costisbasedonthefairvaluesof theconsiderationgiven inexchange forassets. Allamountsarepresented inAustraliandollars,unlessotherwisenoted.ReverseacquisitionePATTechnologiesLimitedacquiredElectronicPainAssessmentTechnologies(EPAT)PtyLtdon23September2016. Froma legal and taxationperspectiveePATTechnologies Limited is consideredtheacquiringentity.However,theacquisitionhasthefeaturesofareverseacquisitionasdescribedin the Australian Accounting Standard AASB3 “Business Combinations” (AASB 3) notwithstandingePATTechnologiesLimitedbeingthelegalparentoftheGroup.AtthetimeoftheacquisitionePATTechnologies Limiteddivested all of its operations, and its activitieswere limited tomanaging itscashbalances,filingobligations(ie,alistedshell),andcompletionoftheacquisition.ItisthereforeconsideredthatePATTechnologiesLimitedwillnotbeabusinessforthepurposesofAASB3asitwillhavenoprocessesoroutputs.The transaction has therefore been accounted for as a reverse acquisition from a consolidatedperspective, where Electronic Pain Assessment Technologies (EPAT) Pty Ltd is the accountingacquirerandePATTechnologiesLimitedisthelegalacquirer.Thehalf–yearfinancialreportincludestheconsolidatedfinancialstatementsofthenewePATTechnologiesLimitedgroupfortheperiod23September2016to31December2016andrepresentsacontinuationofElectronicPainAssessmentTechnologies (EPAT) Pty Ltd financial statements with exception of the capital structure. Theamount recognised as equity instruments in these consolidated statements represents the issuedequity of ePAT Technologies Limited adjusted to reflect the equity issued by ePAT TechnologiesLimited on acquisition. Refer to note 6 on issued capital and note 8 on the accounting for theacquisition. The comparable figuresare thoseof ElectronicPainAssessmentTechnologies (EPAT)PtyLtd.Underthereverseacquisitionprinciples,theconsiderationprovidedbyElectronicPainAssessmentTechnologies(EPAT)PtyLtdwasdeterminedtobe$4,422,069whichisthedeemedfairvalueofthe222,103,433sharesownedbytheformerMinQuestLimitedshareholdersatthecompletionoftheacquisition,valuedatthecapitalraisingshareprice.The excess of the deemed fair value of the shares owned by the ePAT Technologies Limited(formerlyMinQuestLimited)shareholdersandthefairvalueofthe identifiablenetassetsofePATTechnologies Limited immediately prior to the completion of themerger is accounted for under“AASB2“Share–basedPayment”and resulted in the recognitionof$4,574,424being recordedas

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“CorporateRestructureExpense”. ThenetassetsofePATTechnologies Limitedwere recordedatfairvalueatcompletionofthemerger.Noadjustmentswererequiredtothehistoricalvalues.NewaccountingpoliciesforthemergedgroupUponcompletionoftheEPATAcquisition,thebusinessoftheCompanychangedtothatoftheconsolidatedgroupresultingintheneedtoconsiderand/oradoptnewaccountingpolicies.Significantnewaccountingpoliciesadoptedbytheconsolidatedgroupareoutlinedbelow.

(a) Revenueandotherincome

Revenueisrecognisedwhenitisprobablethattheeconomicbenefitwillflowtothecompanyandtherevenuecanbereliablymeasured.Revenueismeasuredatthefairvalueoftheconsiderationreceivedorreceivable.

Saleofgoodsrevenueisrecognisedatthepointofsale,whichiswherethecustomerhastakendeliveryofthegoods,therisksandrewardsaretransferredtothecustomerandthereisavalidsalescontract.Amountsdisclosedasrevenuearenetofsalesreturnsandtradediscounts.

Interestrevenueisrecognisedasinterestaccruesusingtheeffectiveinterestmethod.Thisisamethodofcalculatingtheamortisedcostofafinancialassetandallocatingtheinterestincomeovertherelevantperiodusingtheeffectiveinterestrate,whichistheratethatexactlydiscountsestimatedfuturecashreceiptsthroughtheexpectedlifeofthefinancialassettothenetcarryingamountofthefinancialasset.

Otherrevenueisrecognisedwhenitisreceivedorwhentherighttoreceivepaymentisestablished.

(b) Intangibleassets

Intellectualpropertyrightsarerecognisedatcostofacquisitionlessaccumulatedamortisationandanyimpairmentlosses.Forintellectualpropertyrightsnotyetinuse,theyaretestedforimpairmentannuallyormorefrequentlyifeventsorchangesincircumstancesindicatethattheymightbeimpaired,andarecarriedatcostlessaccumulatedimpairmentlosses.

Expenditureduringtheresearchphaseofaprojectisrecognisedasanexpensewhenincurred.Developmentcostsarecapitalisedonlywhentechnicalfeasibilitystudiesidentifythattheprojectisexpectedtodeliverfutureeconomicbenefitsandthesebenefitscanbemeasuredreliably.

Intangibleassetshaveafiniteusefullifeandareamortisedonasystematicbasisbasedonthefutureeconomicbenefitsovertheusefullifeoftheprojectfollowingcommercialisationoftheassets.

SignificantaccountingpoliciesoftheCompanyandEPATSetoutbelowarethesignificantaccountingpoliciesthathavebeenappliedinthepreparationoftheconsolidatedfinancialstatements:

(a) PrinciplesofConsolidation

TheconsolidatedfinancialstatementscomprisethefinancialstatementsofallsubsidiariesoftheCompanyandtheresultsofallsubsidiariesfromthedatethatcontrolwasobtained.TheCompanycontrolsanotherentitywhentheCompanyisexposedto,orhastherightsto,variablereturnsfromitsinvolvementwiththeentityandhastheabilitytoaffectthosereturnsthroughitspowertodirecttheactivitiesoftheentity.

Subsidiariesarefullyconsolidatedfromthedateonwhichcontrolisfullytransferred.Theyaredeconsolidatedfromthedatecontrolceases.

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Thefinancialstatementofthesubsidiaryispreparedforthesamereportingperiodastheparentcompany,usingconsistentaccountingpolicies.

Inpreparingtheconsolidatedfinancialstatements,allintercompanybalancesandtransactions,incomeandexpensesandprofitandlossesresultingfromintra-grouptransactionshavebeeneliminatedinfull.

Theacquisitionofsubsidiariesisaccountedforusingtheacquisitionmethodofaccounting.Achangeinownershipinterestwithoutalossofcontrolisaccountedforasanequitytransaction.

Non-controllinginterestsintheresultsandequityofsubsidiariesareshownseparatelyinthefinancialstatements.Lossesincurredbytheconsolidatedentityareattributedtothenon-controllinginterestsinfull,evenifthatresultsinadeficitbalance.

Wheretheconsolidatedentitylosescontroloverasubsidiary,itderecognisestheassetsincludinggoodwill,liabilitiesandnon-controllinginterestinthesubsidiary,togetherwithanycumulativetranslationdifferencesinequity.Theconsolidatedentityrecognisesthefairvalueoftheconsiderationreceivedandthefairvalueofanyinvestmentretainedtogetherwithanygainsorlossesinprofitorloss.

(b) IncomeTax

Currenttaxassetsandliabilitiesforthecurrentandpriorperiodsaremeasuredattheamountexpectedtoberecoveredfromorpaidtothetaxationauthorities.Thetaxratesandtaxlawsusedtocomputetheamountarethosethatareenactedorsubstantivelyenactedbythebalancedate.

Deferredincometaxisprovidedonalltemporarydifferencesatthebalancedatebetweenthetaxbasesofassetsandliabilitiesandtheircarryingamountsforfinancialreportingpurposes.Deferredincometaxliabilitiesarerecognisedforalltaxabletemporarydifferencesexcept:

§ whenthedeferredincometaxliabilityarisesfromtheinitialrecognitionofgoodwillorofanassetorliabilityinatransactionthatisnotabusinesscombinationandthat,atthetimeofthetransaction,affectsneithertheaccountingprofitnortaxableprofitorloss;or

§ whenthetaxabletemporarydifferenceisassociatedwithinvestmentsinsubsidiaries,associatesorinterestsinjointventures,andthetimingofthereversalofthetemporarydifferencecanbecontrolledanditisprobablethatthetemporarydifferencewillnotreverseintheforeseeablefuture.

Deferredincometaxassetsarerecognisedforalldeductibletemporarydifferences,carry-forwardofunusedtaxassetsandunusedtaxlosses,totheextentthatitisprobablethattaxableprofitwillbeavailableagainstwhichthedeductibletemporarydifferencesandthecarry-forwardofunusedtaxcreditsandunusedtaxlossescanbeutilised,except:

§ whenthedeferredincometaxassetrelatingtothedeductibletemporarydifferencearisesfromtheinitialrecognitionofanassetorliabilityinatransactionthatisnotabusinesscombinationand,atthetimeofthetransaction,affectsneithertheaccountingprofitnortaxableprofitorloss;or

§ whenthedeductibletemporarydifferenceisassociatedwithinvestmentsinsubsidiaries,associatesorinterestsinjointventures,inwhichcaseadeferredtaxassetisonlyrecognisedtotheextentthatitisprobablethatthetemporarydifferencewillreverseintheforeseeablefutureandtaxableprofitwillbeavailableagainstwhichthetemporarydifferencecanbeutilised.

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Thecarryingamountofdeferredincometaxassetsisreviewedateachbalancedateandreducedtotheextentthatitisnolongerprobablethatsufficienttaxableprofitwillbeavailabletoallowallorpartofthedeferredincometaxassettobeutilised.Unrecogniseddeferredincometaxassetsarereassessedateachbalancedateandarerecognisedtotheextentthatithasbecomeprobablethatfuturetaxableprofitwillallowthedeferredtaxassettoberecovered.

Deferredincometaxassetsandliabilitiesaremeasuredatthetaxratesthatareexpectedtoapplytotheyearwhentheassetisrealisedortheliabilityissettled,basedontaxrates(andtaxlaws)thathavebeenenactedorsubstantivelyenactedatthebalancedate.

Incometaxesrelatingtoitemsrecogniseddirectlyinequityarerecognisedinequityandnotinprofitorloss.

Deferredtaxassetsanddeferredtaxliabilitiesareoffsetonlyifalegallyenforceablerightexiststosetoffcurrenttaxassetsagainstcurrenttaxliabilitiesandthedeferredtaxassetsandliabilitiesrelatetothesametaxableentityandthesametaxationauthority.

(c) ImpairmentofAssets

TheGroupassessesateachbalancedatewhetherthereisanindicationthatanassetmaybeimpaired.

Ifanysuchindicationexists,orwhenannualimpairmenttestingforanassetisrequired,theCompanymakesanestimateoftheasset’srecoverableamount.Anasset’srecoverableamountisthehigherofitsfairvaluelesscoststosellanditsvalueinuseandisdeterminedforanindividualasset,unlesstheassetdoesnotgeneratecashinflowsthatarelargelyindependentofthosefromotherassetsorgroupsofassetsandtheasset'svalueinusecannotbeestimatedtobeclosetoitsfairvalue.Insuchcasestheassetistestedforimpairmentaspartofthecashgeneratingunittowhichitbelongs.Whenthecarryingamountofanassetorcash-generatingunitexceedsitsrecoverableamount,theassetorcash-generatingunitisconsideredimpairedandiswrittendowntoitsrecoverableamount.

Inassessingvalueinuse,theestimatedfuturecashflowsarediscountedtotheirpresentvalueusingapre-taxdiscountratethatreflectscurrentmarketassessmentsofthetimevalueofmoneyandtherisksspecifictotheasset.Impairmentlossesrelatingtocontinuingoperationsarerecognisedinthoseexpensecategoriesconsistentwiththefunctionoftheimpairedassetunlesstheassetiscarriedatrevaluedamount(inwhichcasetheimpairmentlossistreatedasarevaluationdecrease).

Anassessmentisalsomadeateachbalancedateastowhetherthereisanyindicationthatpreviouslyrecognisedimpairmentlossesmaynolongerexistormayhavedecreased.Ifsuchindicationexists,therecoverableamountisestimated.Apreviouslyrecognisedimpairmentlossisreversedonlyiftherehasbeenachangeintheestimatesusedtodeterminetheasset’srecoverableamountsincethelastimpairmentlosswasrecognised.Ifthatisthecasethecarryingamountoftheassetisincreasedtoitsrecoverableamount.Thatincreasedamountcannotexceedthecarryingamountthatwouldhavebeendetermined,netofdepreciation,hadnoimpairmentlossbeenrecognisedfortheassetinprioryears.Suchreversalisrecognisedinprofitorlossunlesstheassetiscarriedatrevaluedamount,inwhichcasethereversalistreatedasarevaluationincrease.

Aftersuchareversalthedepreciationchargeisadjustedinfutureperiodstoallocatetheasset’srevisedcarryingamount,lessanyresidualvalue,onasystematicbasisoveritsremainingusefullife.

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(d) Share-basedPaymentTransactions

Thecostofequity-settledtransactionswithemployeesismeasuredbyreferencetothefairvalueoftheequityinstrumentsatthedateatwhichtheyaregranted.Thefairvalueisdeterminedbyusingasuitableoptionpricingmodel.

Invaluingequity-settledtransactions,noaccountistakenofanyperformanceconditions,otherthanconditionslinkedtothepriceofthesharesoftheCompany.

Thecostofequity-settledtransactionsisrecognised,togetherwithacorrespondingincreaseinequity,overtheperiodinwhichtheperformanceand/orserviceconditionsarefulfilled,endingonthedateonwhichtherelevantrecipientoftheequitybecomesfullyentitledtotheaward(thevestingperiod).

Thecumulativeexpenserecognisedforequity-settledtransactionsateachreportingdateuntilvestingdatereflects(i)theextenttowhichthevestingperiodhasexpiredand(ii)theCompany’sbestestimateofthenumberofequityinstrumentsthatwillultimatelyvest.Noadjustmentismadeforthelikelihoodofmarketperformanceconditionsbeingmetastheeffectoftheseconditionsisincludedinthedeterminationoffairvalueatgrantdate.Theincomestatementchargeorcreditforaperiodrepresentsthemovementincumulativeexpenserecognisedasatthebeginningandendofthatperiod.

Noexpenseisrecognisedforawardsthatdonotultimatelyvest,exceptforawardswherevestingisonlyconditionaluponamarketcondition.

Ifthetermsofanequity-settledawardaremodified,asaminimumanexpenseisrecognisedasifthetermshadnotbeenmodified.Inaddition,anexpenseisrecognisedforanymodificationthatincreasesthetotalfairvalueoftheshare-basedpaymentarrangement,orisotherwisebeneficialtotheemployee,asmeasuredatthedateofmodification.

Ifanequity-settledawardiscancelled,itistreatedasifithadvestedonthedateofcancellation,andanyexpensenotyetrecognisedfortheawardisrecognisedimmediately.However,ifanewawardissubstitutedforthecancelledawardanddesignatedasareplacementawardonthedatethatitisgranted,thecancelledandnewawardaretreatedasiftheywereamodificationoftheoriginalaward,asdescribedinthepreviousparagraph.

(e) Cashandcashequivalents

Cashcomprisescashatbankandinhand.Cashequivalentsareshortterm,highlyliquidinvestmentsthatarereadilyconvertibletoknownamountsofcashandwhicharesubjecttoaninsignificantriskofchangesinvalue.Bankoverdraftsareshownwithinborrowingsincurrentliabilitiesinthestatementoffinancialposition.

ForthepurposeoftheStatementofCashFlows,cashincludesonhandandotherfundsheldatcallnetofbankoverdrafts.

SignificantaccountingjudgementsandkeyestimatesThe preparation of interim financial statements requires management to make judgements,estimates and assumptions that affect the application of accounting policies and the reportedamountsofassets,liabilities,incomeandexpense.Actualresultsmaydifferfromtheseestimates.Inpreparingthesehalf-yearlystatements,thekeyestimatesmadebymanagementinapplyingtheCompany’saccountingpolicieshavebeenappliedtothevaluationofsharebasedpayments,refertonote7.

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In preparing these half-yearly statements, the significant judgements made by management inapplying the Company’s accounting policies and the key sources of estimation uncertainty havebeenappliedtothereverseacquisition,refertonote8.AmendmentstoAASBsandthenewInterpretationthataremandatorilyeffectiveforthecurrentreportingperiodThe Group has adopted all of the new and revised Standards and Interpretations issued by theAustralian Accounting Standards Board (the AASB) that are relevant to their operations andeffectiveforthecurrenthalf-year.NewandrevisedStandardsandamendmentsthereofand Interpretationseffectiveforthecurrenthalf-year that are relevant to the Consolidated Entity do not have any material impact on thedisclosuresortheamountsrecognisedintheCompany’sfinancialstatements.

2. SegmentinformationAASB 8 requires operating segments to be identified on the basis of internal reports aboutcomponentsoftheConsolidatedEntitythatareregularlyreviewedbythechiefoperatingdecisionmakerinordertoallocateresourcestothesegmentandtoassessitsperformance.AASB8 “Operating Segments’” states that similar operating segments canbe aggregated to formone reportable segment. Following the acquisition of Electronic Pain Assessment Technologies(EPAT) Pty Ltd the Group aggregated all its reporting segments into one reportable operatingsegment. Prior to that, the Company operated as a corporate shell having ceased its previousexplorationactivitiesinthepriorperiod.

3. Revenue Consolidated Company 31Dec2016 31Dec2015 $ $Interestincome 5,061 2,265

4. Otherincome Consolidated Company 31Dec2016 31Dec2015 $ $Rebates 49 598Grants 20,000 -TotalOtherIncome 20,049 598

5. Losspershare Consolidated Company 31Dec2016 31Dec2015 $ $Basicanddilutedlosspershare(centspershare) (0.0) (0.1)

Thelossandweightedaveragenumberofordinarysharesusedinthecalculationofbasic losspershareareasfollows: Consolidated Company 31Dec2016 31Dec2015 $ $Lossforthehalf-yearattributabletotheownersoftheCompany

(6,977,675) (83,365)

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Consolidated Company 31Dec2016 31Dec2015 No. No.Weightedaveragenumberofordinarysharesforthepurposesofbasicanddilutedlosspershare 365,121,486 1,000,001

Optionsonissueareconsideredtobeanti-dilutivewhiletheentityismakinglosses.

6. Issuedcapital Consolidated Company 31Dec2016 30June2016 $ $FullypaidOrdinaryshares 8,502,533 357,143

Consolidated Company 31December2016 30June2016 No. $ No. $Balanceatbeginningofthereportingperiod 1,000,001 357,143 1,000,001 357,143MergerofEPATTechnologiesLtdandElectronicPainAssessmentTechnologies(EPAT)PtyLtd

EliminationofexistingElectronicPainAssessmentTechnologies(EPAT)PtyLtdshares (1,000,001) - - -ExistingePATTechnologiesLimitedsharesonacquisition 222,103,433 4,442,069 - -IssueofEPATTechnologiesLtdsharesonacquisition 213,219,616 - - -Issuedpursuanttocapitalraising 236,625,000 4,732,500 Issuedinlieuofremuneration 2,475,000 49,500 Capitalraisingcosts - (1,078,679) - -Balanceatendofperiod 674,423,049 8,502,533 1,000,001 357,143

Fullypaidordinarysharescarryonevotepershareandcarrytherighttodividends.Ordinarysharesparticipate in theproceedsonwindingupof theCompany inproportionto thenumberofsharesheld.

7. Reserves Consolidated Company

Optionreserve:31Dec2016 30June

2016 $ $Balanceatbeginningofthereportingperiod - -Issueof45,000,000Underwriteroptions 522,000 -Issueof90,198,155Directoroptions 1,728,066 -Totalreservesatendofperiod 2,250,066 -

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Optionsissuedduringtheperiod:Options Consolidated Company

31-Dec-16 30-Jun-16

No. $ No. $

Balanceatbeginningofthereportingperiod

-

-

-

-

ExistingePATTechnologiesLtdsharesonacquisition

103,035,179

- - -

Issueofoptionstounderwriters 45,000,000 522,000 - - Issueofdirectoroptions 90,198,155 1,728,066 - -Balanceatendofperiod 238,233,334 2,250,066 - -

Underwriteroptions45,000,000optionswere grantedUnderwriter pursuant to theProspectusdated25August 2016.ThefairvalueoftheoptionsatgrantdatearedeterminedusingaBlackScholespricingmethodthattakes into account the exercise price, the term of the option, the share price at grant date andexpected volatility of the underlying share, the expected dividend yield and the risk free interestrateforthetermoftheoption.Thefollowingtableliststheinputstothemodelusedforvaluationoftheunlistedoptions:Item InputsVolatility(%) 100%Riskfreeinterestrate(%) 1.54%Expectedlifeofoption(years) 3.03Expecteddividendyield nilExercisepricepertermsandconditions $0.025Underlyingsecuritypriceatgrantdate $0.020Expirydate 7October2019Valueperoption $0.0116

Directoroptions90,198,155 options were granted to the Directors as approved by shareholders at the annualgeneralmeetingon23November2016.Thefairvalueoftheoptionsatgrantdatearedeterminedusing a Black Scholes pricingmethod that takes into account the exercise price, the term of theoption,thesharepriceatgrantdateandexpectedvolatilityoftheunderlyingshare,theexpecteddividendyieldandtheriskfreeinterestrateforthetermoftheoption.Refertonote10fordetailsofthevestingconditions.Thefollowingtableliststheinputstothemodelusedforvaluationoftheunlistedoptions:Item Inputs

Volatility(%) 100%Riskfreeinterestrate(%) 1.54%Expectedlifeofoption(years) 3.003Expecteddividendyield nilExercisepricepertermsandconditions $0.020Underlyingsecuritypriceatgrantdate $0.037Expirydate 24November2019Valueperoption $0.0271

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8. Acquisitionaccounting&sharebasedpaymentexpenseSubsidiaryacquiredOn 25 July 2016 the Company executed a share purchase agreement for the acquisition of onehundredpercentoftheissuedcapitalofElectronicPainAssessmentTechnologies(EPAT)PtyLtd.Theconsiderationforthisacquisitionwasmadeupasfollows:

(i) 213,219,616sharestobeissuedatcompletion;and

(ii) $1,000,000worthofsharestobeissuediftheCompanyannouncesthateitherofthefollowingmilestoneshavebeenmetwithin12monthsfromthedateofcompletionoftheacquisition:

(A) RegulatoryapprovalhavingbeenreceivedtoenablecommercialuseoftheePATAppinAustralia,theUnitedStatesofAmericaorEurope.(Inthiscontext,“RegulatoryApproval”meansapprovalbytheTherapeuticGoodsAdministrationofAustralia,FoodandDrugAdministrationoftheUnitedStates,oraCEmarkfromtherelevantauthorityinEurope);or

(B) theexecutionofabindinglicenceagreementtolicencetheePATAppto:

§ oneormoreresidentialagedcarefacilityownersmanagingintotalinexcessof150beds;

§ oneormoremedicalclinicswhichserviceintotalinexcessof2,000patientsperyear;

§ ametropolitanhospitalwithinexcessof200beds;

(eachan"EndUser”)or

§ aglobaldistributionpartnerwithmultipleEndUsersasexistingcustomers.

FromalegalandtaxationperspectiveePATTechnologiesLimitedisconsideredtheacquiringentity.However, the acquisition has the features of a reverse acquisition as described in the AustralianAccountingStandardAASB3“BusinessCombinations”notwithstandingePATTechnologiesLimitedbeing the legal parent of the Group. The transaction has been accounted for as a reverseacquisitionfromaconsolidatedperspective,whereElectronicPainAssessmentTechnologies(EPAT)PtyLtdistheaccountingacquirerandePATTechnologiesLimitedisthelegalacquirer.TheexcessofthefairvalueofthesharesownedbytheePATTechnologiesLimitedshareholdersandthe fair valueof the identifiablenetassetsofePATTechnologies Limited immediatelyprior to thecompletionofthemergerisaccountedforunder“AASB2“Share–basedPayment”andresultedintherecognitionof$4,574,424beingrecordedas“CorporateRestructureExpense”.ThenetassetsofePATTechnologiesLimitedwererecordedatfairvalueatcompletionofthemerger.Noadjustmentswererequiredtothehistoricalvalues.

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EPATTechnologies

LimitedAssetsacquiredandliabilitiesofEPATTechnologiesLimitedassumedatthedateofacquisition $Currentassets Cashandcashequivalents 18,243Tradereceivables 12,025Totalassets 30,268 Currentliabilities Tradeandotherpayables 134,372Provisions 28,251Totalliabilities 162,623Netliabilitiesacquired (132,355)

Thefairvaluesoftheassetsacquiredandtheliabilitiesassumedapproximatetheircarryingvalue.TheinitialaccountingfortheacquisitionofEPATTechnologiesLimited(thelegalacquirer)hasbeendeterminedattheendofthereportingperiod.Corporaterestructureexpenseonacquisition Fairvalueofnotionalsharesissuedtoaffectthetransaction 4,442,069Lessfairvalueofidentifiablenetliabilitiesacquired-EPATTechnologiesLimited (132,355)Corporaterestructureexpense 4,574,424

9. InterestsinSubsidiariesTheconsolidatedfinancialstatementsincludethefinancialstatementsofePATTechnologiesLimitedanditssubsidiarycompanyElectronicPainAssessmentTechnologies(EPAT)PtyLtd.Thefollowingsubsidiariesweredisposedof/acquiredduringtheperiod:

Name CountryofIncorporation

PercentageofequityinterestheldbyConsolidatedEntity%

31Dec2016 30June2016ElectronicPainAssessmentTechnologies(EPAT)PtyLtd Australia 100 -

MerahAfricanExplorationLimited Zambia - 100MerahWestAfricaLimited Ghana - 100OresearchLimited Australia - 100MerahResourcesCanadaLimited Canada - 100

10. KeymanagementpersonnelRemuneration arrangements of keymanagement personnel are disclosed in the annual financialreportat30 June2016. During theperiodunder review therewereanumberof changes tokeymanagementpersonnel.Directorresignationswerereceivedfrom:

MrPaulNiardone(resigned30September2016)MrJeremyRead(resigned30September2016)MrFrankTerranova(resigned5September2016)

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On 30 September 2016, the following personnel were appointed directors of the Company(excluding Mr Davey who remained a director) and entered into letters of appointment on thefollowingkeyterms:

Name Position CashRemunerationinclusiveof

superannuation

Noticeperiod/terminationprovisions

Optionsequivalentto%offully

dilutedsharesonissue

MrJohnMurray Non-ExecutiveChairman $80,000 Nil 3%

MrAdamDavey Non-ExecutiveDirector $40,000 Nil 1.5%

MrRossHarricks Non-ExecutiveDirector $40,000 Nil 1.5%

MrPhilipDaffas ManagingDirector $225,000* 3months 5%

*Duringtheinitialtermexpiringon31January2017,MrDaffaswillwork3daysperweekandwillreceiveapro-ratedsalaryof$135,000.

Attheannualgeneralmeetingheldon23November2016,shareholdersapprovedtheissueofthefollowingoptionsexercisableat2centspershareandexpiringon24November2019andvestingoncertainconditions:

Name Position Unlistedoptionsallotted19December2016

MrJohnMurray Non-ExecutiveChairman 24,599,497

MrAdamDavey Non-ExecutiveDirector 12,299,748

MrRossHarricks Non-ExecutiveDirector 12,299,748

MrPhilipDaffas ManagingDirector 40,999,162

Total 90,198,155

Theoptionsissuedtodirectorsaretovestasfollows:

i. Onethirdafteroneyearofservice.

ii. OnethirdaftertheCompanymakesanannouncementthatRegulatoryApprovaltoenablecommercialuseoftheEPATAppinAustralia,theUnitedStatesorEuropeisreceived,ortheCompanyhasannouncedtheexecutionofabindinglicenceagreementtolicencetheEPATAppto:

a. oneormoreresidentialagedcarefacilitiesfacilityownersmanagingintotalinexcessof150beds;or

b. oneormoremedicalclinicswhichserviceintotalinexcessof2,000patientsperyear;or

c. ametropolitanhospitalwithinexcessof200beds;(eachan“EndUser”);

d. oraglobaldistributionpartnerwithmultipleEndUsersasexistingcustomers.

iii. OnethirdupontheCompanygeneratingcumulativerevenueof$1,000,000.

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Theoptionsissuedtodirectorsareexpensedasfollows:

Numberofoptions

VestingDate

Value

$

Expensed31

December2016

Tobeexpensed30June2017

Tobeexpensed30June2017

Tranche1 30,066,052 30Sept2017

814,286 99,495 473,909 240,882

Tranche2 30,066,052 Performancebased

814,286 814,286 - -

Tranche3 30,066,052 Performancebased

814,286 814,286 - -

Total 90,198,155 2,442,857 1,728,066 473,909 240,882

11. DividendsNodividendswerepaidordeclared for thehalf-yearended31December2016and thedirectorshavenotrecommendedthepaymentofadividend.

12. CommitmentsandcontingenciesAssetoutinnote8above,theCompanyhasagreedtoissue$1,000,000worthofsharesasdeferredconsiderationsharesiftheCompanyachievescertainmilestoneswithin12monthsfromthedateofcompletion of the acquisition of Electronic Pain Assessment Technologies (EPAT) Pty Ltd (23September2016).Otherwise,therehasbeennochangetothecommitmentsandcontingenciesdisclosedinthemostrecentannualfinancialreport.

13. SubsequenteventsTherehasnotbeenanymatterorcircumstancethathasarisensincetheendofthehalf-yearthathassignificantlyaffected,ormaysignificantlyaffect,theoperationsoftheCompany,theresultsofthoseoperations,orthestateofaffairsoftheCompanyinfuturefinancialyears.

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half year report to the australian securities …appendix 4d half year report adalta limited page 1...

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