Unaudited Financials for FY 2016

Promisia Integrative Limited


Unaudited Interim Financial Statements


For the Year ended 31 December 2016

The accompanying notes form part of these financial statements
Promisia Integrative Limited
Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income
For the year ended 31 December 2016

UnauditedUnauditedAudited
Year6 monthsYear
Dec 2016June 2016Dec 2015
$000$000$000

Revenue2,665 994 408
Cost goods sold(778) (253) (98)
1,887 741 310
Expenses
Operating expenses(1,429) (727) (464)
Administration expenses(662) (260) (490)
Research & Development (192) (94) (234)
Amortisation(23) (11) (14)
(2,306) (1,092) (1,202)
(Loss) before taxation and interest(419) (351) (892)

-
Finance cost - interest paid(55) (27) (62)
Finance income - interest received 11 12 8
Net Loss for period before tax(463) (366) (946)
Income tax expense- - -
Loss for period(463) (366) (946)
Other comprehensive income
Current translation differences13 11 (10)
Total comprehensive (Loss) for period(450) (355) (956)
attributable to shareholders
Basic Earnings per share (0.001) (0.001) (0.003)
Diluted Earnings per share(0.001) (0.001) (0.003)

The accompanying notes form part of these financial statements
Promisia Integrative Limited
Consolidated Interim Statement of Changes in Equity
For the year ended 31 December 2016
ShareForeignShareAccumulatedTotal
CapitalCurrencyOptionLosses
ReserveReserve
$000$000$000$000$000
Unaudited
Equity at 1 January 201654,225 185 57 (53,932) 535
Net loss for period- - - (463) (463)
Other comprehensive Income (Loss)- 13 - - 13
Share Issue net proceeds 1,568 - - - 1,568
Share based payment- - 44 - 44
Equity at 31 December 201655,793 198 101 (54,395) 1,697

Unaudited
Equity at 1 January 201654,225 185 57 (53,932) 535
Net loss for period- - - (366) (366)
Other comprehensive Income (Loss)- 11 - - 11
Share Issue net proceeds 143 - - - 143
Share based payment- - 22 - 22
Equity at 30 June 201654,368 196 79 (54,298) 345
Audited
Equity at 1 January 201552,731 195 58 (52,986) (2)
Net loss for period- - - (946) (946)
Other comprehensive Income (Loss)- (10) - - (10)
Share Issue net proceeds 1,450 - - - 1,450
Options expired44 (44) - -
Share based payment- - 43 - 43
Equity at 31 December 201554,225 185 57 (53,932) 535

The accompanying notes form part of these financial statements

Promisia Integrative Limited
Consolidated Interim Balance Sheet
UnauditedUnauditedAudited
As at 31 December Year6 monthsYear
Dec 2016June 2016Dec 2015
$000$000$000
EQUITY
Share Capital55,79354,36854,225
Share Option Reserve1007957
Foreign Currency Reserve199196185
Accumulated Losses(54,394) (54,298) (53,932)
TOTAL EQUITY1,697 345 535
Represented by:
CURRENT ASSETS
Bank1,8276041,021
Receivables264339102
Prepayments847642
Inventory811879591
2,986 1,898 1,756
NON-CURRENT ASSETS
Investments757575
Intangible Assets130112115
TOTAL ASSETS3,190 2,085 1,946
less
CURRENT LIABILITIES
Payables and Accruals575656 315

NON-CURRENT LIABILITIES
Loan9191,084 1,096

TOTAL LIABILITIES1,4941,7401,411
NET ASSETS ( LIABILITIES)1,697 345 535

The accompanying notes form part of these financial statements

Promisia Integrative Limited
Consolidated Interim Statement of Cashflows
For the year ended 31 December 2016
UnauditedUnauditedAudited
Year6 monthsYear
Dec 2016June 2016Dec 2015
$000$000$000
Operating activities
Receipts from customers2,471 791 534
Receipt tax56 39 49
Payments to suppliers and employees(3,160) (1,404) (1,421)
Interest (net)(44) 12 (54)
Net cash flows from (used in) operating activities(676) (562) (892)

Investing Activities
Purchase intangible assets(38) (8) (19)
Net cash flows from (used in) operating activities(38) (8) (19)
Financing activities
New share issue & costs1,520 153 1,284

Net cash flows from financing activities1,520 153 1,284

Net change in cash 806 (417) 373
Cash at Start of Period1,021 1,021 648
Exchange rate fluctuations- - -
Cash at End of Period1,827 604 1,021

The accompanying notes form part of these financial statements
Promisia Integrative Limited
Notes to Consolidated Interim Financial Statements
For the year ended 31 December 2016
_________________________________________________________________________

1. Nature of operations
Promisia Integrative Limited (Company) and its subsidiaries (the Group) principal activities are
focused on developing and marketing unique therapeutic natural products with proven safety
and efficacy based on robust research.

2 General information and statement of compliance

The company is registered under the Companies Act 1993 and is a Financial Markets Conduct
2013 reporting entity in terms of the Financial Reporting Act 2013. The group is profit –
orientated.
Promisia Integrative Limited is a company domiciled in New Zealand. The registered office of
the company is Level 15, 171 Featherston Street, Wellington.
Basis of Preparation
The unaudited interim financial statements have been prepared in accordance with Generally Accepted
Accounting Practice in New Zealand, which is the New Zealand equivalent to International Financial
Reporting Standards (NZ IFRS). They comply with NZ IAS 34 Interim Financial Reporting and should be
read in conjunction with the 31 December 2015 annual report
The financial statements are presented in New Zealand dollars which is the group’s functional
and presentation currency and rounded to the nearest thousand dollars unless otherwise
stated.
These financial statements do not include all the information required for full financial statements
and consequently should be read in conjunction with the full financial statements of the Group for
the year ended 31 December 2015.

The accounting policies adopted are consistent with those of the previous financial year. All new
standards and amended standards issued during 2015 and applicable after 1 January 2015
have not been adopted. The impact in the initial period of application is expected to be minimal
at this stage.

3. Disclosures
3.1 Operating segments
The Group’s reportable segments are based on the geographic location of its activities which
reflect the type of activities undertaken and have been determined based on internal reporting
used by management and the Board of Directors to assist strategic decision making.

3.2 Financial risk management
The Group's activities are exposed to a variety of financial risks: market risk, credit risk, liquidity risk,
cash flow risk and fair value interest-rate risk. The condensed interim financial statements do not
include all financial risk management information and disclosures required in the annual financial
statements; they should be read in conjunction with the Group's annual financial statements as at
31 December 2015. There have been no changes in the management of risk or in any risk
management policies in the current period. The Group does not have any derivative financial
instruments or any other financial assets or liabilities that are classified as instruments at fair
value through profit and loss under NZ IFRS.

The fair value of assets and liabilities approximates their carrying value.

The accompanying notes form part of these financial statements
Promisia Integrative Limited
Notes to Consolidated Interim Financial Statements
For the year ended 31 December 2016
_________________________________________________________________________________

3.3 Share Capital
The Group’s share capital includes fully paid, subscribed and treasury shares.
Issued and paid capital
There were 498,510,841 (2015: 281,733,138) ordinary shares on issue at balance date.
At 31 December 2016 issued and paid capital comprised
UnauditedUnauditedAudited
Year6 monthsYear
Dec 2016June 2016Dec 2015
$000$000$000
Opening balance54,225 52,731 52,731
Share Issue net proceeds 1,585 - 1538
Expired options- - 44
Issue costs(17) - (88)
Closing balance55,793 52,731 54,225

During the year 63 million ordinary shares were issued as part of a rights issue to raise further
equity funding of $1,585,000 for the company’s next phase of growth and development.
At 31 December 2015 the new subscribed and paid capital from the rights issue totalled
$1,537,990 with the balance of unpaid subscribed capital $152,010 being received in January
2017.
Unpaid ordinary shares – Treasury shares
A further 27,043,986 of unpaid shares have been issued by the company as a part of a Staff
Unpaid Share Scheme for eligible staff being employees or contractors to purchase. The
shares are unallocated shares held by a nominee company Promisia Trustee Limited. No
shares were allocated to staff at 31 December 2016.

3.4. Related party information
During the year to 31 December 2016, director fees of $75,000 (31 December 2015 $60,000)
were paid and management fees of $180,000 (31 December 2015 $133,000) were paid to key
management personnel.
As noted in paragraph 3.3, a Staff Unpaid Share Scheme has been set up for eligible staff to
participate in.
During the year, a company bonus scheme was also set up for staff that has been offered the
unpaid shares in the staff unpaid share scheme.
At 31 December 2016 no staff member has accepted the offer and $100,000 has been
allocated to key management as annual bonuses to be used as payment when the shares are
allocated and vested.
The bonuses will be paid to staff net of tax based on achieving agreed sales targets as set by
the board on an annual basis for the financial years ending 31 December 2016 and 31
December 2017 and used entirely as payment for the unpaid shares.

The accompanying notes form part of these financial statements

3.5. Contingent liabilities
There were no contingent liabilities at 31 December 2016 (31 December 2015:$nil).

3.6 Capital commitments
There were no capital commitments at 31 December 2016 (December 2015:$nil).

3.7 Purchase commitments
The Artemisia leaf purchase commitment at 31 December 2016 amounts to $151,000
(2014:$93,000.).

3.8 The interim financial statements to 31 December 2016 have not been audited.

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Name of Listed Issuer:Promisia Integrative Limited

FINANCIAL SUMMARY
For the year ended 31 December 2016

Full year% Up/(Down) Half yearFull year
31-Dec-16on year30-Jun-1631-Dec-15
Unaudited31-Dec-15UnauditedAudited
$000 $000$000
Sales revenue2,665 553%994 408


Operating loss before tax(463) -51%(366) (946)
Net Loss(463) -51%(366) (946)
Total Assets3,191 64%2,085 1,946
Basic Earnings per share(0.001) (0.001) (0.003)
Diluted Earnings per share(0.001) (0.001) (0.003)
Tangible Asset backing per share0.006 0.0070.004





REPORT OF THE CHAIRMAN AND CHIEF EXECUTIVE
1 March 2017
PROMISIA INTEGRATIVE ANNUAL RESULT FOR THE YEAR ENDED 31 DECEMBER 2016
Promisia Integrative Limited (Promisia) and its subsidiaries (“the Group”) has today announced its
unaudited result for the year ended 31 December 2016.
Promisia Group Results
Revenues from sales of Arthrem
®
were $2,664,806 in fiscal 2016, representing a 553% improvement
on the $408,000 recorded in the previous year.
The Group incurred a loss of $462,822, including non-cash expenses of $80,000 and interest expenses
of $55,000, for the year ended 31 December 2016 (2015: $946,000 loss).

Highlights from 2016
Revenue growth of over 500%
Arthrem
®
sales increased significantly throughout the year. According to an independent report from
RPM pharmacy retail, Arthrem
®
is now the top selling product, by dollar value. Arthrem
®
is now
available from most New Zealand pharmacies.

Trading result
The loss for the year was below budget and reflected a loss of $366,000 in the first half of the year
compared with a loss of $96,822 in the second half. In the second half the loss was only $69,098, before
non-cash expenses. The directors consider this to be very satisfactory outcome, especially when
compared with the loss of $946,000 in 2015.
Successful Rights Issue
In December 2016 Promisia raised $1,433,331 through a successful rights issue. The issue was
oversubscribed by $1,244,219. The primary use of these funds will be the launch of the joint
supplement for dogs in New Zealand and the launch of Arthrem
®
in Australia. The other main use of
the funds will be as working capital to finance all stages of the supply chain to service continued sales
growth.
Outlook for 2017
The company had achieved its target market share for 2017 by the end of 2016. The current year has
started well with sales in January well ahead of the same month in 2016. In New Zealand the company
intends to build on a successful 2016 for Arthrem
®
.
In late 2016 the company changed marketing representation and as of 1 February 2017 has
implemented a small price increase to recover increased direct costs. The company has taken over
order fulfilment and operates a small warehouse and dispatch service to pharmacies and pharmacy
wholesalers.
Australia
The company is going through the registration process to list Arthrem
®
as a complementary medicine
in Australia with the Therapeutic Goods Administration. The process is taking longer than expected
and in the meantime work is underway to prepare for a product launch in selected geographical
markets.

Joint supplement for dogs
Manufacturing trials are ongoing to perfect the formulation and maximise acceptance and palatability
by dogs. Marketing and distribution plans are also under development.
Research
As noted in the half year announcement the research programme has been focused on the finalisation
of a formulation for the joint supplement for dogs.
Priorities
The priorities for 2017 are:
 Building Arthrem
®
sales in New Zealand
 The launch of Arthrem
®
in Australia, and
 The launch of the joint supplement for dogs in New Zealand and, possibly, in Australia.
On behalf of the directors and management we thank shareholders for their support of the company,
particularly those who participated in the cash issue in late 2016.
For further information please contact:
Mr. Charles Daily, Chief Executive Officer on (04) 894 8524 or
Mr. Stephen Underwood, Chairman on 0274993387