Announcement PDF CORE EXPLORATION LTD ACN: 146 287 809 ACN 146 287 809 Interim Consolidated Financial Statements for the half-year ended 31 December 2015 The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Stephen Biggins (BSc(Hons)Geol, MBA) as Managing Director of Core Exploration Ltd who is a member of the Australasian Institute of Mining and Metallurgy and is bound by and follows the Institute’s codes and recommended practices. He has sufficient experience which is relevant to the styles of mineralisation and types of deposits under consideration and to the activities being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr. Biggins consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. CORE EXPLORATION LTD ACN: 146 287 809 Contents DIRECTORS’ REPORT .................................................................................................................................................................. 2 AUDITOR’S INDEPENDENCE DECLARATION............................................................................................................................. 3 STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME ....................................................................... 4 STATEMENT OF FINANCIAL POSITION ...................................................................................................................................... 5 STATEMENT OF CHANGES IN EQUITY....................................................................................................................................... 6 STATEMENT OF CASH FLOWS ................................................................................................................................................... 7 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ................................................................................................... 8 DIRECTORS’ DECLARATION ..................................................................................................................................................... 14 INDEPENDENT REVIEW REPORT ............................................................................................................................................. 15 This Interim Report covers Core Exploration Ltd (“Core” or the “Company”) as a Group consisting of Core Exploration Ltd and its subsidiaries, collectively referred to as the “Group”. The financial report is presented in the Australian currency. Core is a company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business is: Core Exploration Ltd 26 Gray Court Adelaide SA 5000 Website www.coreexploration.com.au CORE EXPLORATION LTD ACN: 146 287 809 Directors’ Report The Directors of Core Exploration Ltd present their Report together with the financial statements of the consolidated entity, being Core Exploration (“Core” or “the Company”) and its controlled entities (“the Group”) for the half year ended 31 December 2015 and the Independent Review Report thereon. DIRECTORS The following persons were directors of Core throughout the period.    Gregory English Stephen Biggins Heath Hellewell REVIEW OF OPERATIONS AND FINANCIAL RESULTS Core Exploration Ltd holds exploration projects comprising prospective tenements in the highly prospective geology in the Northern Territory and world-class mining provinces in South Australia. The Company’s project areas are focused on targets within prospective geological terrains for lithium, base metals and uranium in Northern Territory and South Australia, which host world-class mining operations including Olympic Dam and Four Mile and Beverley uranium mines. In the half year to 31 December 2015, Core continued its exploration programs at its 100%-owned tenements in the Jervois region in the Northern Territory and at the Yerelina Zinc project in South Australia. The net loss of the Company, from the six months to 31 December 2015, was $719,769 after providing for income tax. A copy of the auditor’s independence declaration as required under s307C of the Corporations Act 2001 is included on page 3 of this financial report and forms part of this Directors’ Report. Signed in accordance with a resolution of the directors. Stephen Biggins Managing Director 25 February 2016 2 Level 1, 67 Greenhill Rd Wayville SA 5034 Correspondence to: GPO Box 1270 Adelaide SA 5001 T 61 8 8372 6666 F 61 8 8372 6677 E info.sa@au.gt.com W www.grantthornton.com.au AUDITOR’S INDEPENDENCE DECLARATION TO THE DIRECTORS OF CORE EXPLORATION LIMITED In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the review of Core Exploration Limited for the half-year ended 31 December 2015, 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 Chartered Accountants I S Kemp Partner - Audit & Assurance Adelaide, 25 February 2016 Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389 ‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited. Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current scheme applies. CORE EXPLORATION LTD ACN: 146 287 809 Statement of Profit or Loss and Other Comprehensive Income For the half year ended 31 December 2015 Notes 31 December 2015 $ 31 December 2014 $ Interest income 3,214 15,590 Other income 22,188 - Administration costs (229,523) (320,264) Employee benefits expense (37,314) (64,687) Exploration expense (18,195) (16,137) Impairment expense (577,015) (19,887) Depreciation (9,664) (16,583) Other expenses (563) (16,709) Loss before tax (846,872) (438,677) Income tax benefit 127,103 212,031 Loss for the period from continuing operations attributable to owners of the parent (719,769) (226,646) - - (719,769) (226,646) (0.43) (0.18) Other Comprehensive income attributable to owners of the parent Total Comprehensive loss for the period attributable to owners of the parent Earnings Per Share from Continuing Operations Basic and diluted Loss – cents per share 3 This statement should be read in conjunction with the notes to the financial statements. 4 CORE EXPLORATION LTD ACN: 146 287 809 Statement of Financial Position As at 31 December 2015 Notes 31 December 2015 $ 30 June 2015 $ Cash and cash equivalents 213,120 533,832 Trade and other receivables 220,147 56,205 433,267 590,037 5,877,311 5,780,273 71,902 87,487 5,949,213 5,867,760 6,382,480 6,457,797 Trade and other payables 181,837 131,137 Employee provisions 11,891 19,354 Total current liabilities 193,728 150,491 TOTAL LIABILITIES 193,728 150,491 NET ASSETS 6,188,752 6,307,306 ASSETS Current assets Total current assets Non-current assets Exploration and evaluation expenditure 4 Plant and equipment Total non-current assets TOTAL ASSETS LIABILITIES Current liabilities EQUITY Issued capital 5 12,385,920 11,928,892 Reserves 6 671,267 527,080 Accumulated losses (6,868,435) (6,148,666) TOTAL EQUITY 6,188,752 6,307,306 This statement should be read in conjunction with the notes to the financial statements. 5 CORE EXPLORATION LTD ACN: 146 287 809 Statement of Changes in Equity For the half year ended 31 December 2015 Share capital Reserve Accumulated losses Total equity $ $ $ $ Balance at 1 July 2014 9,757,722 514,335 (4,874,265) 5,397,792 Share placement, issue of share upon purchase of joint venture interests and exercise of quoted options 2,250,373 - - 2,250,373 Issue Costs (net of tax) (86,313) - - (86,313) Fair value of performance rights and options issued to officers and employees - 11,865 - 11,865 Vesting of Director performance rights 7,110 (7,110) - - 2,171,170 4,755 - 2,175,925 Total profit or loss for the reporting period - - (226,646) (226,646) Total other comprehensive income for the reporting period - - - - Balance 31 December 2014 11,928,892 519,090 (5,100,911) 7,347,071 Balance at 1 July 2015 11,928,892 527,080 (6,148,666) 6,307,306 Rights issue, share purchase plan and settlement of invoices 604,450 77,120 - 681,570 Issue Costs (147,422) 65,158 - (82,264) - 1,909 - 1,909 457,028 144,187 - 601,215 Total profit or loss for the reporting period - - (719,769) (719,769) Total other comprehensive income for the reporting period - - - - 12,385,920 671,267 (6,868,435) 6,188,752 Transactions with owners Comprehensive income: Fair value of performance rights and options issued to officers, employees and shareholders Transactions with owners Comprehensive income: Balance 31 December 2015 This statement should be read in conjunction with the notes to the financial statements. 6 CORE EXPLORATION LTD ACN: 146 287 809 Statement of Cash Flows For the half year ended 31 December 2015 31 December 2015 $ 31 December 2014 $ Interest received 4,632 18,445 Other income received 22,188 - (305,917) (463,381) - 296,140 (279,097) (148,796) Proceeds on sale of assets 470 - Payments for plant and equipment (216) (52,919) Payments for capitalised exploration expenditure (674,985) (957,678) Net cash used in investing activities (674,731) (1,010,597) Proceeds from issue of share capital 681,570 1,750,373 Subscriptions received 25,616 - Payments for capital raising costs (74,070) (119,187) 633,116 1,631,186 (320,712) 471,793 533,832 683,138 213,120 1,154,931 Operating activities Payments to suppliers and employees Research and development tax concession received Net cash used in operating activities Investing activities Financing activities Net cash from financing activities Net change in cash and cash equivalents Cash and cash equivalents, beginning of reporting period Cash and cash equivalents, end of period This statement should be read in conjunction with the notes to the financial statements. 7 CORE EXPLORATION LTD CONSOLIDATED FINANCIAL STATEMENTS - 31 DECEMBER 2015 Notes to the consolidated financial statements For the period ended 31 December 2015 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES a) Nature of operations Core’s principal activities are the exploration for iron oxide, copper, gold, and uranium (IOCGU) deposits in South Australia and Northern Territory. b) General information and basis of preparation The interim consolidated financial statements (the interim financial statements) of the Group are for the six months ended 31 December 2015 and are presented in Australian dollars($), which is the functional currency of the parent company. These general purpose interim financial statements have been prepared in accordance with the requirements of the Corporations Act 2001 and AASB 134 Interim Financial Reporting. They do not include all of the information required in annual financial statements in accordance with AIFRS, and should be read in conjunction with the consolidated financial statements of the Group for the year ended 30 June 2015 and any public announcements made by the Group during the half-year in accordance with the continuous disclosure requirements arising under the Australian Securities Exchange Listing Rules and the Corporations Act 2001. The Company is a for profit entity for the purposes of preparing its financial statements. The interim financial statements have been approved and authorised for issue by the board of directors on 25 February 2016. c) Significant accounting Policies The interim financial statements have been prepared in accordance with the same accounting policies adopted in the Group’s last annual financial statements for the year ended 30 June 2015. The accounting policies have been applied consistently throughout the Group for the purposes of preparation of these interim financial statements. d) Critical accounting estimates and judgements The Directors evaluate estimates and judgements incorporated into the financial report based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends of economic data, obtained both externally and within the Group. i) Key estimates- impairment The Group assesses impairment at each reporting date by evaluating conditions specific to the Group that may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined. ii) Key judgements – exploration and evaluation expenditure The future recoverability of capitalised exploration and evaluation expenditure is dependent on a number of factors, including whether the Group decides to exploit the related lease itself or, if not, whether it successfully recovers the related exploration and evaluation asset through sale. Factors that could impact the future recoverability include the level of reserves and resources, future technological changes, which could impact the cost of mining, future legal changes (including changes to environmental restoration obligations) and changes to commodity prices. To the extent that capitalised exploration and evaluation expenditure is determined not to be recoverable in the future, profits and net assets will be reduced in the period in which this determination is made. In addition, exploration and evaluation expenditure is capitalised if activities in the area of interest have not yet reached a stage that permits a reasonable assessment of the existence or otherwise of economically recoverable reserves. To the extent it is determined in the future that this capitalised expenditure should be written off, profits and net assets will be reduced in the period in which this determination is made. 8 CORE EXPLORATION LTD CONSOLIDATED FINANCIAL STATEMENTS - 31 DECEMBER 2015 2. GOING CONCERN BASIS OF ACCOUNTING The interim financial report has been prepared on the basis of a going concern. During the six months ended 31 December 2015 the consolidated group recorded a net cash outflow from operating and investing activities of $953,828 and an operating loss of $719,769. These conditions give rise to a material uncertainty that may cast significant doubt upon the Group’s ability to continue as a going concern. The ability of the Group to continue to pay its debts as and when they fall due is dependent upon the entity successfully: continuing the development of its exploration assets raising additional funds which may be from a variety of means inclusive of, but not limited to issue of new equity, debt, asset sales or entering into joint venture arrangements on mineral properties. The directors believe it is appropriate to prepare these accounts on a going concern basis because Directors have an appropriate plan to meet conditions. If additional capital is not obtained, the going concern basis may not be appropriate, with the result that the group may have to realise its assets and extinguish its liabilities, other than in the ordinary course of business and at amounts different from those stated in the interim financial report. No allowance for such circumstances has been made in the interim financial report. 3. EARNINGS PER SHARE The weighted average number of shares for the purpose of diluted earnings per share can be reconciled to the weighted average number of ordinary shares used in the calculation of basic earnings per share as follows: 6 months to December 2015 # 166,385,955 166,385,955 6 months to December 2014 # 126,612,083 126,612,083 0.43 0.18 31 December 2015 $ 30 June 2015 $ Opening balance 5,780,273 4,470,318 Expenditure on exploration during the period 692,248 2,079,057 Impairment of capitalised exploration (577,015) (737,812) Exploration expenditure expensed (18,195) (31,290) Closing balance 5,877,311 5,780,273 Weighted average number of shares used in basic earnings per share Weighted average number of shares used in diluted earnings per share Loss per share – basic and diluted (cents) In accordance with AASB 133 ‘Earnings per Share’, there are no dilutive securities. 4. EXPLORATION AND EVALUATION EXPENDITURE During the period, a number of tenements were relinquished or planned to be relinquished. An impairment expense of $577,015 is recognised in relation to these relinquishments. 9 CORE EXPLORATION LTD CONSOLIDATED FINANCIAL STATEMENTS - 31 DECEMBER 2015 5. SHARE CAPITAL 31 December 2015 Number of shares 31 December 2015 $ (a) Issued and paid up capital Fully paid ordinary shares 174,664,295 12,385,920 174,664,295 12,385,920 Balance as at 1 July 2015 150,486,287 11,928,892 Share purchase plan (including underwriting) 24,000,008 600,000 178,000 4,450 - (147,422) Balance as at 31 December 2015 174,664,295 12,385,920 30 June 2015 Number of shares 30 June 2015 $ 150,486,287 11,928,892 150,486,287 11,928,892 Balance as at 1 July 2014 106,800,740 9,757,722 Share placements 33,181,818 1,750,000 Consideration for purchase of NT tenements 10,000,000 500,000 500,000 7,110 3,729 373 - (86,313) 150,486,287 11,928,892 (b) Movements in fully paid shares Consideration for services Capital raising costs (a) Issued and paid up capital Fully paid ordinary shares (b) Movements in fully paid shares Exercise of director performance rights Exercise of quoted options Issue costs (net of tax) Balance as at 30 June 2015 10 CORE EXPLORATION LTD CONSOLIDATED FINANCIAL STATEMENTS - 31 DECEMBER 2015 6. RESERVES Share based payments are in line with the Core Exploration Ltd remuneration policy. Listed below are summaries of options and performance rights granted: Reconciliation of options / rights reserve Opening balance Issue of options during the period Issue of performance rights / options during the period 31 December 2015 $ 527,080 30 June 2015 $ 514,335 142,405 11,618 1,782 8,237 - (7,110) 671,267 527,080 577,518 435,113 93,749 91,967 671,267 527,080 Exercise of performance rights during the period Closing balance Share option reserve Performance rights reserve Total Share Option Reserve – 31 December 2015 Number of options 31 December 2015 $ Weighted average exercise price Opening balance 18,400,000 435,113 $0.096 Issued to share purchase plan underwriters 12,000,000 65,158 $0.050 Issued to shareholders under rights issue 25,706,705 77,120 $0.050 Issued to a director 1,000,000 127 $0.100 Lapsed (1,200,000) - $0.096 Balance at 31 December 2015 55,906,705 577,518 $0.065 During the six months to 31 December 2015, 12,000,000 unlisted options were issued to underwriters of the Group’s share purchase plan (these options were subsequently quoted). A further 25,706,705 quoted options were issued under a rights issue undertaken during the period. A further 1,000,000 options were issued to a director as approved by shareholders at the 2015 Annual General Meeting. During the six months to 31 December 2015, 1,200,000 unlisted options lapsed. 11 CORE EXPLORATION LTD CONSOLIDATED FINANCIAL STATEMENTS - 31 DECEMBER 2015 30 June 2015 $ Weighted average exercise price Share Option Reserve – 30 June 2015 Number of options Opening balance 2,700,000 423,495 $0.179 Issued to employees 200,000 3,628 $0.085 Issued to contractors 2,000,000 7,990 $0.063 Issued to shareholders 15,000,000 - $0.100 Cancelled / lapsed (1,500,000) - $0.246 Balance at 30 June 2015 18,400,000 435,113 $0.096 Number of rights 31 December 2015 $ Opening balance 3,925,000 91,967 Issued to KMP 800,000 1,782 Lapsed during the period (800,000) - Balance at 31 December 2015 3,925,000 93,749 Performance Rights Reserve – 31 December 2015 Performance rights were issued as KMP remuneration with related KPI’s. Number of rights Performance Rights Reserve – 30 June 2015 30 June 2015 $ Opening balance 9,000,000 90,840 Issued to KMP 1,175,000 8,237 Exercised upon meeting KPI (500,000) (7,110) Lapsed during the period (5,750,000) - Balance at 30 June 2015 3,925,000 91,967 Nature and purpose of reserves The share option reserve and performance rights reserve is used to recognise the fair value of all options and performance rights. 12 CORE EXPLORATION LTD CONSOLIDATED FINANCIAL STATEMENTS - 31 DECEMBER 2015 7. OPERATING SEGMENTS The Directors have considered the requirements of AASB 8 – Operating Segments and the internal reports that are reviewed by the chief operating decision maker (the Board) in allocating resources have concluded that at this time there are no separately identifiable segments. 8. CONTINGENT LIABILITIES The Group has claimed the research and development tax offset for the year ended 30 June 2013 for a total amount of $296,140. Of the total claim, $257,735 is currently being reviewed by AusIndustry as part of their internal processes. AusIndustry has not advised the Company of a decision in relation to the claim. A negative result in relation to the review by AusIndustry may result in some or all of the research and development tax offset being repaid. 9. EVENTS ARISING SINCE THE END OF THE REPORTING PERIOD No matters or circumstances, other than those listed below, have arisen since the end of the half-year which significantly affected or may significantly affect the operations of the Company or Group, the results of those operations or the state of affairs of the Company and Group in subsequent financial years. On 19 January 2016, Core Exploration announced that 17,959,369 quoted options were issued to the underwriters of the rights issue announced on 27 October 2015. The options have an exercise price of $0.05 and expiry of 31 August 2017. On 29 January 2016, the Group announced that 3,125,000 unlisted performance rights lapsed on 28 January 2015. The rights were issued to directors and officers as remuneration and lapsed as the performance conditions associated with these securities had not been met. On 1 February 2016, the Group announced that 15,000,000 unlisted options with an exercise price of $0.10 lapsed on 31 January 2016 in accordance with the terms of those options. On 25 February 2016, Core Exploration announced that 43,511,385 shares were issued to sophisticated, professional and institutional investors under a share placement. The placement raised $957,250 (before costs) with funds to be used to fund the Group’s Lithium projects. The Company has committed to issue 43,511,385 free attaching quoted option to each applicant under the share placement and 10,000,000 quoted options to Hartleys exercisable at 5 cents and expiring 31 August 2017 (CXOOA) subject to shareholder approval at a subsequent meeting. 13 CORE EXPLORATION LTD CONSOLIDATED FINANCIAL STATEMENTS - 31 DECEMBER 2015 Directors’ Declaration In the opinion of the Directors of Core Exploration Ltd: a) the consolidated financial statements and notes of Core Exploration Ltd are in accordance with the Corporations Act 2001, including: i. giving a true and fair view of its financial position as at 31 December 2015 and of its performance for the halfyear ended on that date; and ii. complying with Accounting Standard 134 Interim Financial Reporting; and b) there are reasonable grounds to believe that the Company will be able to pay its debts when they become due and payable. Signed in accordance with a resolution of the Directors: Stephen Biggins Managing Director Adelaide 25 February 2016 14 Level 1, 67 Greenhill Rd Wayville SA 5034 Correspondence to: GPO Box 1270 Adelaide SA 5001 T 61 8 8372 6666 F 61 8 8372 6677 E info.sa@au.gt.com W www.grantthornton.com.au INDEPENDENT AUDITOR’S REVIEW REPORT TO THE MEMBERS OF CORE EXPLORATION LIMITED We have reviewed the accompanying half-year financial report of Core Exploration Limited (“Company”), which comprises the consolidated financial statements being the statement of financial position as at 31 December 2015, and the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the half-year ended on that date, notes comprising a statement 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 Core Exploration Limited are responsible for the preparation of the halfyear 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 consolidated entity’s financial position as at 31 December 2015 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 Core Exploration 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 Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389 ‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited. Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current scheme applies. 2 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 Core Exploration 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 2015 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 going concern Without qualifying our opinion, we draw attention to Note 2 in the financial report which indicates that the consolidated entity incurred a net loss of $719,769 during the half-year ended 31 December 2015 and, as of that date, the consolidated entity’s cash outflows from operating and investing activities equates to $953,828. These conditions, along with other