Appendix 4D Half Year Report
31 December 2012 Name of entity: ABN Reference:
HEALTHLINX LIMITED 88 098 640 362
1. Results for announcement to the market
Current period Previous corresponding
period
% Change Amount of change
2012 2011 $AUD $AUD $AUD
Key Information
Revenues from ordinary activities 22,067 177,343 Down 87.6% Down 155,276
Profit/(Loss) from ordinary activities after tax attributable to members
(2,775,578) (825,997) Down 236% Down 1,949,581
Net Profit/(Loss) for the period attributable to members
(2,775,578) (825,997) Down 236% Down 1,949,581
It is not proposed to pay a dividend for the year
2. NTA Backing
Current period Previous corresponding period
Net tangible asset (liability) backing per ordinary security $(0.0008) $(0.0002)
3. Commentary on Financial Results
During the period of July to December 2012, HealthLinx achieved major milestones in respect of its
Second Clinical Study.
The final results from the second, multinational, multi-centre Phase 2 biomarker trial that assessed a
total of 1007 patient samples were announced in November 2012. The use of OvPlex™ was compared
to CA125 in determining disease status. Independent statistical analysis performed by Emphron
Informatics Pty Ltd, using the McNemar’s test, found that OvPlex™ was statistically significantly better
(p value of 0.027) than CA125 in overall diagnostic performance in 1007 patients. OvPlex™ correctly
diagnosed 862 of the trial participants compared to CA125 that correctly diagnosed 839.
More importantly, OvPlex™ was found to have statistically significantly better specificity than CA125
alone (p value of 0.006), thus, indicating OvPlex™ is more accurate at identifying patients without
ovarian cancer. Of the 630 patients found to not have ovarian cancer (controls and benign patients)
OvPlex™ incorrectly diagnosed 53 of these as compared to 68 incorrectly diagnosed with CA125. This
information may assist clinicians to make more informed decisions regarding the management of women
found to have benign conditions.
The study included patient samples sourced across multiple sites in Australia, Singapore and the United
Kingdom under Human Research and Ethics Committee approval.
These results are now being utilised to define a new OvPlex algorithm for implementation for all
OvPlex™ tests in Q2 2013.
HealthLinx has completed analysis of data arising from the clinical study in South Korea and reported to
the clinical investigators in South Korea on the results. Next steps in Korea are on hold pending
completion of commercial transactions described below.
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HealthLinx engaged Brandwood Biomedical Consultants in Australia to assist with the registration
requirements for Australia under the Therapeutic Goods Administration and CPC Clinical Research in
the USA to assist with the Food and Drug Administration requirements to register OvPlex™ Both
programs were suspended when the company entered into commercial negotiations with Mane Cancer
Diagnostics.
HealthLinx entered into a Heads of Agreement with Mane Cancer Diagnostics in August 2012 to sell a
number of HealthLinx assets, including OvPlex™ to Mane Cancer Diagnostics. Due diligence and
financing issues prevented the final sale agreement from being executed by the agreed date of 24
December 2012. The expiry of the agreement allows HealthLinx to explore alternative opportunities to
access the US market whilst continuing discussions with Mane Cancer Diagnostics on a revised
program.
The company has continued to pursue patent and trademark prosecution in key territories for the
OvPlex, AGR-2 and IgY assets.
Notwithstanding the above, the Directors draw attention to Note 6 of the Financial Statement below.
The Directors have decided to be conservative and write down the value of its intangible assets at 31
December 2012.
HealthLinx has rationalised its R&D activities and closed its in-house laboratories. Any future research
and development activities will be conducted under contract with third party providers.
4. Preliminary Half Year Report – Financial Details
Refer to the attached half year financial report.
Greg Rice 28 February 2013
Chairman
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Healthlinx Limited ABN: 88 098 640 352
Interim Financial Statements
For the Half Year Ended 31 December 2012
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Page 2
Financial Statements Contents Page Directors’ Report 3 Consolidated Statement of Comprehensive Income 5 Consolidated Statement of Financial Position 6 Consolidated Statement of Changes In Equity 7 Consolidated Cash Flow Statement 8 Notes to Financial Statements 9 Directors' Declaration 15 Auditor’s Independence Declaration 16 Independent Auditor’s Report 17
The interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2012 and any public announcements made by HealthLinx Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2011.
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Directors’ Report
Your directors present their report on the consolidated entity consisting of Healthlinx Limited and its controlled entity for the half year ended 31 December 2012.
1. General information
Directors
The following persons were directors in office at any time during the half year and up to the date of this report: Greg Rice Chairman Nick Gatsios Independent Non-Executive Director John Evans Independent Non-Executive Director Resigned 31 December
2012 Mal Lucas-Smith Independent Non-Executive Director Appointed 31 December
2012 Directors have been in office since the start of the financial period to the date of this report unless otherwise stated.
2. Review of Operations
During the period of July to December 2012, HealthLinx achieved major milestones in respect of its Second Clinical Study.
The final results from the second, multinational, multi-centre Phase 2 biomarker trial that assessed a total of 1007 patient samples were announced in November 2012. The use of OvPlex™ was compared to CA125 in determining disease status. Independent statistical analysis performed by Emphron Informatics Pty Ltd, using the McNemar’s test, found that OvPlex™ was statistically significantly better (p value of 0.027) than CA125 in overall diagnostic performance in 1007 patients. OvPlex™ correctly diagnosed 862 of the trial participants compared to CA125 that correctly diagnosed 839.
More importantly, OvPlex™ was found to have statistically significantly better specificity than CA125 alone (p value of 0.006), thus, indicating OvPlex™ is more accurate at identifying patients without ovarian cancer. Of the 630 patients found to not have ovarian cancer (controls and benign patients) OvPlex™ incorrectly diagnosed 53 of these as compared to 68 incorrectly diagnosed with CA125. This information may assist clinicians to make more informed decisions regarding the management of women found to have benign conditions.
The study included patient samples sourced across multiple sites in Australia, Singapore and the United Kingdom under Human Research and Ethics Committee approval.
These results are now being utilised to define a new OvPlex algorithm for implementation for all OvPlex tests in Q2 2013.
HealthLinx has completed analysis of data arising from the clinical study in South Korea and reported to the clinical investigators in South Korea on the results. Next steps in Korea are on hold pending completion of commercial transactions described below.
HealthLinx engaged Brandwood Biomedical Consultants in Australia to assist with the registration requirements for Australia under the Therapeutic Goods Administration and CPC Clinical Research in the USA to assist with the Food and Drug Administration requirements to register OvPlex. Both programs were suspended when the company entered into commercial negotiations with Mane Cancer Diagnostics.
HealthLinx entered into a Heads of Agreement with Mane Cancer Diagnostics in August 2012 to sell a number of HealthLinx assets, including OvPlex to Mane Cancer Diagnostics. Due diligence and financing issues prevented the final sale agreement from being executed by the agreed date of 24 December 2012. The expiry of the agreement allows HealthLinx to explore alternative opportunities to access the US market whilst continuing discussions with Mane Cancer Diagnostics on a revised program.
The company has continued to pursue patent and trademark prosecution in key territories for the OvPlex, AGR-2 and IgY assets.
Notwithstanding the above, the Directors draw attention to Note 6 of the Financial Statement below. The Directors have decided to be conservative and write down the value of its intangible assets at 31
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Directors’ Report (Cont.)
December 2012
HealthLinx has rationalised its R&D activities and closed its in-house laboratories. Any future research and development activities will be conducted under contract with third party providers.
3. Auditor’s Independence Declaration
The lead auditor’s independence declaration under section 307C of the Corporations Act 2001 is set out on page 16 for the half year ended 31 December 2012. Signed in accordance with a resolution of the Board of Directors:
Greg Rice Chairman Dated this 28 February 2013
Melbourne
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Page 5
Statement of Comprehensive Income For the Half Year Ended 31 December 2012
Consolidated
Note
31 Dec 2012
$
31 Dec 2011
$
Revenue 22,067 177,343
Other income 64,707 3,000
Total revenue and other income 86,774 180,343
Employee benefits expense (231,675) (554,438)
Depreciation, amortisation and impairments (2,500,323) (57,807)
Scientific consumables (10,679) (26,370)
Consulting and professional fees (208,009) (279,556)
Other expenses 4 (306,397) (422,451)
Finance expense (7,640) (2,127)
Loss before income tax (3,177,949) (1,162,406)
Income tax benefit 402,371 336,409
Net loss for the period (2,775,578) (825,997)
Total comprehensive income/(loss) for the period (2,775,578) (825,997)
Basic and diluted loss per share
(cents per share) from continuing operations:
Overall operations
(2.3c)
($0.004)
$(0.007)
The above income statements should be read in conjunction with the accompanying notes
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Page 6
Statement of Financial Position 31 December 2012
Consolidated
Note
31 Dec 2012
$
30 June 2012
$
ASSETS
Current assets
Cash and cash equivalents 39,736 123,802
Trade and other receivables 54,569 86,039
Total current assets 94,305 209,841
Non-current assets
Property, plant and equipment 4,033 44,786
Intangible assets 6 729,734 3,094,315
Total non-current assets 733,767 3,139,101
TOTAL ASSETS 828,072 3,348,942
LIABILITIES
Current liabilities
Trade and other payables 440,009 596,271
Short-term borrowings 159,745 217,078
Derivative Liability 27,156 51,687
Short-term provisions 29,732 56,606
Total current liabilities 656,642 921,642
Non-current liabilities
Deferred tax liabilities 10,313 11,963
Other long-term provisions - 3,642
Total non-current liabilities 10,313 15,605
TOTAL LIABILITIES 666,955 937,247
NET ASSETS 161,117 2,411,695
EQUITY
Equity attributable to owners of the parent:
Contributed equity 5 15,357,516 14,832,516
Reserves – Share option reserve 403,204 403,204
Accumulated losses (15,599,603) (12,824,025)
TOTAL EQUITY 161,117 2,411,695
The above statement of financial position should be read in conjunction with the accompanying notes
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Statement of Changes in Equity
For the Half Year Ended 31 December 2012
Consolidated
31 December 2011
Contributed Equity
$
Share Option
Reserve $
Accumulated Losses
$
Total
$
Balance at 1 July 2011 12,959,800 402,244 (10,856,453) 2,505,591
Losses for the year - - (825,997) (825,997)
Total comprehensive income/(loss) for the year - - (825,997) (825,997)
Contributions of equity, net of transaction costs 991,218 - - 991,218
Share based payments as consideration of services rendered 109,500 - - 109,500
Employee share options - - - -
Transactions with equity holders in their capacity as equity holders 1,100,718 - - 1,100,718
Balance at 31 December 2011 14,060,518 402,244 (11,682,450) 2,780,312
Consolidated
31 December 2012
Contributed Equity
$
Share Option
Reserve $
Accumulated Losses
$
Total
$
Balance at 1 July 2012 14,832,516 403,204 (12,824,025) 2,411,695
Losses for the year - - (2,775,578) (2,775,578)
Total comprehensive income/(loss) for the year - - (2,775,578) (2,775,578)
Contributions of equity, net of transaction costs 525,000 - - 525,000
Share based payments as consideration of services rendered - - - -
Employee share options - - - -
Transactions with equity holders in their capacity as equity holders 525,000 - - 525,000
Balance at 31 December 2012 15,357,516 403,204 (15,599,603) 161,117
The above statements of changes in equity should be read in conjunction with the accompanying notes
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Page 8
Cash Flow Statement For the Half Year Ended 31 December 2012 Consolidated
31 Dec 2012
$
31 Dec 2011
$
Cash flows from operating activities:
Receipts from customers including GST 32,576 177,025
Payments to suppliers and employees including GST (980,043) (1,370,825)
Research & development tax concessions received 400,721 -
Interest received 2,086 6,738
Interest paid (9,434) (2,127)
Net cash provided by (used in) operating activities (554,094) (1,189,189)
Cash flows from investing activities:
Proceeds from sale of plant and equipment 9,285 -
Receipt of government grants 50,000 125,000
Payments for intangibles (56,988) (112,827)
Net cash provided by (used in) investing activities 2,297 12,173
Cash flows from financing activities:
Proceeds from issue of share capital - 1,009,958
Proceeds from borrowings 467,731 160,520
Payment of share issue costs - (40,939)
Net cash provided by (used in) financing activities 467,731 1,129,539
Net increase (decreases) in cash held (84,066) (47,477)
Cash at beginning of the half year 123,802 110,239
Cash at end of the half year 39,736 62,762
The above cash flow statements should be read in conjunction with the accompanying notes
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Notes to the Financial Statements For the Half Year Ended 31 December 2012
1. Statement of Significant Accounting Policies
(a) Basis of Preparation
This half year consolidated financial report is a general purpose financial report prepared in accordance with the requirements of the Corporations Act 2001 and Australian Accounting Standard AASB 134: Interim Financial Reporting. The interim financial report is intended to provide users with an update on the latest annual financial statements of Healthlinx Limited and controlled entities (the Group). As such it does not contain information that represents relatively insignificant changes occurring during the year within the Group. This half year consolidated financial report does not include all the notes normally included in an annual financial report. It is therefore recommended that this financial report be read in conjunction with the annual financial statements of the Group for the year ended 30 June 2012, together with any public announcements made by Healthlinx Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001. The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period.
(b) Going Concern
As a developing business the Group has experienced half year operating losses of $3,177,949 (of which $2,414,394 is an impairment charge against intangible assets) and net cash outflows from operating activities of $579,084, and has a deficiency in net tangible assets of $232,110. On the 28 February 2013 the Directors and La Jolla Cove Investors Inc. (“La Jolla Cove”) have drafted a mutual agreement to terminate the funding facility without penalty. The directors are currently in negotiations with financiers to replace La Jolla Cove, which are anticipated to provide a minimum drawdown facility of up to $1m. The continuing viability of the Group and its ability to continue as a going concern is dependent upon the Group being successful in its continuing efforts in accessing additional sources of capital and/or revenue and/or the realisation of intangible assets. As a result there is significant uncertainty whether the Group will continue as a going concern and, therefore, whether it will realise its assets and settle its liabilities and commitments in the normal course of business and at the amounts stated in the financial report. However, the Directors believe that the Group will be able to access sufficient sources of funds and, accordingly, have prepared the financial report on a going concern basis. Accordingly, no adjustments have been made to the financial report relating to the recoverability and classification of the asset carrying amounts or the amount and classification of liabilities that might be necessary should the Group not continue as a going concern.
Significant matters considered by the Directors in determining that it is appropriate for the financial report to be prepared on a going concern basis include:
It is anticipated that sales of Ovplex will commencing is Spain and India during the second half of the 2012/13 financial year;
The Directors expect to obtain sufficient funding through an alternate financier to replace La Jolla Cove;
Historical attempts by the Group to raise further equity funding or other sources of finance have generally been successful.
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Notes to the Financial Statements For the Half Year Ended 31 December 2012
2. Events Subsequent to Reporting Date
Please refer to Note 1(b) for significant events subsequent to balance date.
3. Operating Segments
Under AASB 8 Operating Segments, segment information is presented using a 'management approach'; that is, segment information is provided on the same basis as information used for internal reporting purposes by the chief operating decision maker (executive management committee that makes strategic decisions).
(a) Description of Segments
Management has determined the operating segments based on reports reviewed by the board for making strategic decisions. The board monitors the business based on product and geographic factors and have identified three business segments: Cryptomics, Diagnostics, and Peptide Research. Each of these segments involves scientific research and development in relation to intellectual property within the platform as described by its name. This has resulted in the scientific departments of Diagnostics, Cryptomics, and Peptide Research being aggregated into one reportable segment.
(b) Information About Reportable Segments
Aggregated Scientific
Departments bb
For the 6 Months ended 31 Dec
2012 $
For the 6 Months ended 31 Dec
2011 $
External Segment Revenues 22,067 174,030
Segment Expenses (368,487) (375,351)
Total (346,420) (201,321)
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Notes to the Financial Statements For the Half Year Ended 31 December 2012
3. Operating Segments (continued)
(c) Reconciliation of reportable Segment Revenue, Profit/(Loss), Assets & Liabilities and Other
Material Items
For the 6 Months ended 31 Dec
2012 $
For the 6 Months ended 31 Dec
2011 $
Revenues
Total revenue from reportable segments (aggregated) 21,775 174,030
Finance revenue 292 3,313
Other revenue 15,122 -
Total 37,189 177,343
Profit or loss
Total profit/(loss) for reportable segments (aggregated) (346,420) (201,301)
Other profit/(loss)
Unallocated amounts:
Finance expense (7,640) (2,127)
Depreciation, amortisation and impairments (2,500,323) (57,807)
Share based payments - (109,500)
Other corporate expenses (323,566) (791,671)
Consolidated profit/(loss) before income tax (3,177,949) (1,162,406)
4. Other Expenses
Consolidated bb
For the 6 Months ended 31 Dec
2012 $
For the 6 Months ended 31 Dec
2011 $
Accounting fees 75,569 8,798
Auditors remuneration - parent entity 9,464 26,196
Computer expenses 9,390 9,080
Permits, licenses and fees 69,560 85,951
Insurance 22,157 21,350
Lease rentals on operating lease 33,346 46,729
Travel - domestic 4,778 11,956
Travel - overseas 140 55,637
Other operating expenses 81,993 156,754
Total 306,397 422,451
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Notes to the Financial Statements For the Half Year Ended 31 December 2012
5. Equity Securities Issued
(a) Contributed equity
Share capital
Consolidated
For the 6 Months ended 31 Dec
2012 $
For the 6 Months ended 31 Dec
2011 $
Contributed equity at beginning of the period 14,832,516 12,959,800
Shares issued 525,000 1,141,655
Share issue expenses - (40,937)
Contributed equity at the end of the period 15,357,516 14,060,518
Ordinary Shares
For the 6 Months ended 31 Dec 2012
Number
For the 6 Months ended 31 Dec
2011
Number
Contributed equity at beginning of the period 380,104,803 170,352,212
Shares issued 315,748,909 83,470,851
Contributed equity at the end of the period 695,853,712 253,823,063
(b) Unlisted options
For the 6 Months ended 31 Dec 2012
Number
For the 6 Months ended 31 Dec
2011
Number
Options at the beginning of the period 36,448,028 15,624,355
Options issued during the period - 31,052,809
Options lapsed / forfeited during the period - (200,000)
Options exercised during the period - -
Total unlisted options at the end of the period 36,448,028 46,477,164
(c) Listed options
For the 6 Months ended 31 Dec 2012
Number
For the 6 Months ended 31 Dec
2011
Number
Options at the beginning of the period 14,750,000 14,750,000
Options issued during the period - -
Options lapsed / forfeited during the period - -
Options exercised during the period - -
Total listed options at the end of the period 14,750,000 14,750,000
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Notes to the Financial Statements For the Half Year Ended 31 December 2012
6. Intangible assets
Goodwill and capitalised development costs related to OvPlex and IGY totalling $2,414,394 have been written off during the reporting period.
Whilst the directors believe that the company will realise a value in excess of the current carrying value for the goodwill and capitalised development costs through either sale or use, due to the inherent uncertainly in the future cash flows, the directors have decided to be conservative and write down the value of this asset for accounting purposes.
The directors believe OvPlex and IgY have a value in excess of the revised carrying value for the following reasons:
the company anticipates significant growth sales and market share in Singapore, Malaysia, India and Spain where they current have distribution agreements in place;
current distribution agreements provide for expansion into additional Asian and European markets;
the company continues to focus on US market opportunities; and
potential for further income arising from successful patent prosecution events
Consolidated bbbbb
31 Dec 2012 $
30 June 2012 $
Goodwill
Cost 1,887,220 1,887,220
Accumulated impairment losses (1,518,466) -
Net carrying value 368,754 1,887,220
Intellectual property
Cost 778,285 778,285
Accumulated amortisation and impairment (741,909) (736,409)
Net carrying value 36,376 41,876
Capitalised development costs
Cost 1,575,627 1,477,470
Accumulated amortisation and impairment (1,251,023) (312,251)
Net carrying value 324,604 1,165,219
Total Intangibles 729,734 3,094,315
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Notes to the Financial Statements For the Half Year Ended 31 December 2012
6. Intangible assets (cont.) (a) Reconciliation Detailed Table
Consolidated
Intellectual Property
$
Goodwill
$
Capitalised Devt Costs
$
Total
$
Year ended 30 June 2012
Opening balance 52,876 1,887,220 957,521 2,897,617
Additions - - 292,921 292,921
Impairment charges - - - -
Amortisation (11,000) - (85,223) (96,223)
Balance at 30 June 2012 41,876 1,887,220 1,165,219 3,094,315
Half Year ended 31 December 2012
Opening balance 41,876 1,887,220 1,165,219 3,094,315
Additions - - 98,157 98,157
Impairment charges - (1,518,466) (895,928) (2,414,394)
Amortisation (5,500) - (42,844) (48,344)
Balance at 31 December 2012 36,376 368,754 324,604 729,734
Goodwill is allocated to the Company’s cash generating units at the lowest level for which there are separately identifiable cash inflows which are largely independent of cash flows from other CGUs. Goodwill has arisen from historical acquisition which included the assets of Ovplex and IgY, it is not practical to allocate goodwill between the two CGUs and therefore the cash flows of both CGUs are used to assess the recoverability of the goodwill intangible asset.
Capitalised development expenditure relates solely to the Ovplex CGU and the cash flows of the Ovplex CGU have been used to assess the recoverability of this intangible.
7. Provisions The company has provided for long service leave for Mr Nick Gatsios of $29,732, who resigned as Managing Director on 30 June 2012. Mr Gatsios has remained as a Non-Executive Director to the date of this Half Year Report. The company is in the process of obtaining legal advice as to whether Mr Gatsios’ continuing service as a Non-Executive Director constitutes continuing service for long service leave requirements under the Long Service Leave Act (Vic).
8. Commitments
There are no commitments at 31 December 2012.
9. Contingent liabilities and Contingent Assets
There are no contingent assets or contingent liabilities at 31 December 2012.
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Directors’ Declaration The Directors of Healthlinx Limited declare that:
1. The Interim financial statements and notes, as set out on Pages 5 to 14, are in accordance with the Corporations Act 2001 and;
(a) Comply with Accounting Standards and the Corporations Regulations 2001; and, (b) Give a true and fair view of the consolidated entity’s financial position as at 31 December 2012 and
of its performance for the half-year ended on that date;
2. In the directors opinion, there are reasonable grounds to believe that Healthlinx Limited will be able to pay its debts as and when they become due and payable.
This declaration is made in accordance with a resolution of the Board of Directors and is signed for and on behalf of the directors by:
Greg Rice Chairman Dated: 28 February 2013 Melbourne
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Grant Thornton Audit Pty Ltd ACN 130 913 594 The Rialto, Level 30 525 Collins St Melbourne Victoria 3000 GPO Box 4736 Melbourne Victoria 3001 T +61 3 8320 2222 F +61 3 8320 2200 E [email protected] W www.grantthornton.com.au
Grant Thornton Audit Pty Ltd ABN 91 130 913 594 ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389 Grant Thornton Australia Limited is a member firm within Grant Thornton International Ltd. Grant Thornton International Ltd and the member firms are not a worldwide partnership. Grant Thornton Australia Limited, together with its subsidiaries and related entities, delivers its services independently in Australia.
Liability limited by a scheme approved under Professional Standards Legislation
Auditor’s Independence Declaration
To The Directors of HealthLinx Limited
In accordance with the requirements of section 307C of the Corporations Act 2001, as lead
auditor for the review of HealthLinx Limited for the half-year ended 31 December 2012, I
declare that, to the best of my knowledge and belief, there have been:
a no contraventions of the auditor independence requirements of the Corporations Act
2001 in relation to the review; and
b no contraventions of any applicable code of professional conduct in relation to the
review.
GRANT THORNTON AUDIT PTY LTD
Duane Rogers
Partner - Audit & Assurance
Melbourne, 28 February 2013
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Grant Thornton Audit Pty Ltd ACN 130 913 594 The Rialto, Level 30 525 Collins St Melbourne Victoria 3000 GPO Box 4736 Melbourne Victoria 3001 T +61 3 8320 2222 F +61 3 8320 2200 E [email protected] W www.grantthornton.com.au
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Independent Auditor’s Review Report
To the Members of HealthLinx Limited
We have reviewed the accompanying half-year financial report of HealthLinx Limited
(“Company”), which comprises the consolidated financial statements being the statement of
financial position as at 31 December 2012, and the statement of comprehensive income,
statement of changes in equity and statement of cash flows for the half-year ended on that
date, notes comprising a statement or description of accounting policies, other explanatory
information and the directors’ declaration of the consolidated entity, comprising both 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 HealthLinx Limited 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 controls 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 consolidated half-year financial report
based on our review. We conducted our review in accordance with the 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 HealthLinx Limited consolidated entity’s financial position as at 31
December 2012 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 HealthLinx Limited, ASRE 2410 requires that we
comply with the ethical requirements relevant to the audit of the annual financial report.
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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 complied with the independence requirements of the
Corporations Act 2001.
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 HealthLinx Limited is not in
accordance with the Corporations Act 2001, including:
a giving a true and fair view of the consolidated entity’s financial position as at 31
December 2012 and of its performance for the half-year ended on that date; and
b complying with Accounting Standard AASB 134 Interim Financial Reporting and
Corporations Regulations 2001.
Material uncertainty regarding continuation as a going concern
Without qualifying our opinion, we draw attention to Note 1 to the half-year financial report
which indicates uncertainties regarding the going concern assumption, including successful
negotiations to obtain additional financing. The uncertainty around the group’s ability to
obtain sufficient financing indicates the existence of a material uncertainty which may cast
significant doubt about the company’s ability to continue as a going concern and therefore,
the company may be unable to realise its assets and discharge its liabilities in the normal
course of business, and at the amounts stated in the financial report.
GRANT THORNTON AUDIT PTY LTD
Duane Rogers
Partner - Audit & Assurance
Melbourne, 28 February 2013
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