2018 Half Year Result and Interim Report

1




11 December 2017


LAT – 2018 Interim Report

Lateral Corporation (LAT) is pleased to release its Interim Report for the six months ended 30
September 2017.

Please refer to the attached Interim report and announcement for the detailed result for the
period.

For further information please contact:

John Cilliers
CFO & Company Secretary
Lateral Corporation Limited
Email: john.cilliers@outlook.co.nz

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LATERAL CORPORATION LIMITED


FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2017

UNAUDITED INTERIM
FINANCIAL STATEMENTS

Page 1 Interim Report 30 September 2017
Dear Shareholders

The Directors of Lateral Corporation Limited (“the Company”) are pleased to report its financial results for the six
months ended 30 September 2017.

Financial Results
Lateral Corporation Limited reports an unaudited net profit attributable to shareholders of $183,341 for the half
year ended 30 September 2017. This compares with a net loss attributable to shareholders of $173,978 for the
same period last year. The net profit figure is made up of a gain from continuing operations of $342,095 (loss of
$55,993 for the same period last year) and a loss from discontinued operations of $158,754 (loss of $117,985 for
the same period last year). The largest contributor to the result in this period was the gain on disposal of
subsidiary of $499,542 resulting from the transaction that disposed of Lateral Profiles Limited.

The numbers in the Company's Statement of Comprehensive Income for the 6 months to 30 September 2017 are
dominated by the one-off transactions that occurred on 31 August 2017 that spun-out all assets and liabilities of
the Company to its previous subsidiary. Following the transactions, the important thing to note is that the
Company's Statement of Financial Position shows a cashed-up position as was intended by the transactions; and
in particular shows cash and cash equivalents of $2,579,019.

Future Growth Strategy
Following completion of the transactions that introduced the new shareholder and the spin-out of all assets and
liabilities of the Company to its previous subsidiary, the Company now begins afresh with a cashed-up position
and a new strategy.

As discussed in the Disclosure Document dated 20 July 2017, the Company is seeking to grow by making
acquisitions in the financial services sector. The Company is looking for appropriate acquisition targets but the
Board do not expect that any acquisition will be completed until 2018. The Company will seek shareholder
approval as required to complete any transaction.

On behalf of the Directors of Lateral Corporation the Company extends its thanks to the shareholders for their
support of the company.

Ka Wo Chan
Chairman

Page 2 Interim Report 30 September 2017

CONTENTS

GROUP INTERIM STATEMENT OF COMPREHENSIVE INCOME _________________________________ 3
GROUP STATEMENT OF FINANCIAL POSITION _____________________________________________ 4
GROUP INTERIM STATEMENT OF CHANGES IN EQUITY ______________________________________ 5
GROUP INTERIM STATEMENT OF CASH FLOWS ____________________________________________ 6
NOTES TO THE FINANCIAL STATEMENTS _________________________________________________ 7
BUSINESS DIRECTORY _______________________________________________________________ 9

Page 3 Interim Report 30 September 2017
GROUP INTERIM STATEMENT OF COMPREHENSIVE INCOME


This statement should be read in conjunction with the accompanying notes and the annual financial
statements for the year ended 31 March 2017.
For the period ended 30 September 2017
UnauditedUnauditedAudited
Six monthsSix monthsYear
Sep-17Sep-16Mar-17
$$$
Continuing operations
Other income15,000 - -
Administrative expenses(121,909) (141,636) (203,970)
Finance costs(50,538) - (4,838)
Gain from write off on loans from related parties- 85,250 85,250
Gain on disposal of subsidiary499,542 - -
Gain/(Loss) before income tax342,095 (55,993) (123,558)
Income tax expense- - -
Gain/(Loss) for the period from continuing operations342,095 (55,993) (123,558)

Discontinued operations
Operating revenue126,752 71,560 514,004
Cost of sales14,589 (145,095) (844,670)
Gross profit/(loss)141,341 (73,535) (330,666)
Other income115,000 370 345
Administrative expenses(384,468) (369,335) (684,974)
(128,127) (442,500) (1,015,295)
Depreciation, amortisation and impairment(120) (393) (1,834)
Finance costs(30,507) (40,768) (40,200)
Gain from write off on loans from related parties- 365,676 365,676
Loss before income tax(158,754) (117,985) (691,653)
Income tax expense- - -
Loss for the period from discontinued operations(158,754) (117,985) (691,653)
Net profit /(loss) for the period attributable to shareholders183,341 (173,978) (815,211)
Other comprehensive income- - -
183,341 (173,978) (815,211)
Earnings per share:centscentscents
From continuing and discontinued operations
Basic earnings/(loss) per share0.27 (0.20) (2.05)
Diluted earnings/(loss) per share0.27 (0.20) (2.05)
From continuing operations
Basic earnings/(loss) per share(0.12) (0.43) (0.31)
Diluted earnings/(loss) per share(0.12) (0.43) (0.31)
Total comprehensive profit /(loss) for the period, net of tax,
attributable to shareholders
Loss before interest, tax, depreciation, amortisation and other items

Page 4 Interim Report 30 September 2017
GROUP STATEMENT OF FINANCIAL POSITION



11 December 2017



Chairman: Ka Wo Chan Director: Joseph Van Wijk

This statement should be read in conjunction with the accompanying notes and the annual financial
statements for the year ended 31 March 2017.
As at 30 September 2017
UnauditedAudited
Six monthsYear
Sep-17Mar-16
$$
Assets
Current assets
Cash and cash equivalents2,579,019 103,211
Trade and other receivables25,483 75,753
Assets held for sale to shareholders- 109,920
2,604,502 288,884
Non-current assets
- -
Total assets 2,604,502 288,884
Equity and liabilities
Current liabilities
Trade and other payables42,037 184,250
Liabilities held for disposal to shareholders- 871,732
Total liabilities42,037 1,055,982
Equity
Issued capital5,672,856 2,826,634
Accumulated loss(3,110,391) (3,593,732)
Total equity2,562,465 (767,098)
Total equity and liabilities2,604,502 288,884
CentsCents
Net Tangible Asset per share0.50 (4.34)

Page 5 Interim Report 30 September 2017
GROUP INTERIM STATEMENT OF CHANGES IN EQUITY



This statement should be read in conjunction with the accompanying notes and the annual financial
statements for the year ended 31 March 2017.


For the period ended 30 September 2017
Issued
capital
Mandatory
Convertible
Notes
Accumulated
Loss
Total equity
$$$$
As at 1 April 20161,520,400 190,816 (2,778,521) (1,067,305)
Profit/(Loss) for the period- - (173,978) (173,978)
Other comprehensive income- - - -
Total comprehensive income/(loss)- - (173,978) (173,978)
Issue of share capital566,390 - - 566,390
Issued to related parties for financing charges74,148 - - 74,148
Issued to related parties for settlement of loans120,968 - - 120,968
Issued for interest on convertible notes9,106 - - 9,106
Conversion of mandatory convertible notes190,816 (190,816) - -
Transaction costs(15,594) - - (15,594)
Unaudited balance for the period ended 30 September 20162,466,234 - (2,952,499) (486,265)
As at 1 October 20162,466,234 - (2,952,499) (486,265)
Loss for the period- - (641,233) (641,233)
Other comprehensive income- - - -
Total comprehensive loss- - (641,233) (641,233)
Issue of share capital438,505 - - 438,505
Issued to related parties for settlement of loans(3,836) - - (3,836)
Transaction costs(74,269) - - (74,269)
At 31 March 20172,826,634 - (3,593,732) (767,098)
As at 1 April 20172,826,634 - (3,593,732) (767,098)
Loss for the period- - 183,341 183,341
Other comprehensive income- - - -
Total comprehensive loss- - 183,341 183,341
Issue of share capital3,100,000 - - 3,100,000
(300,000) - 300,000 -
Transaction costs46,222 - - 46,222
Unaudited balance for the period ended 30 September 20175,672,856 - (3,110,391) 2,562,465
Reverse consolidation equity of Lateral Profiles on sale

Page 6 Interim Report 30 September 2017
GROUP INTERIM STATEMENT OF CASH FLOWS



This statement should be read in conjunction with the accompanying notes and the annual financial
statements for the year ended 31 March 2017.
For the period ended 30 September 2017
Unaudited
Unaudited
Audited
Six months
Six months
Year
Sep-17
Sep-16
Mar-17
$
$
$
Operating activities
Receipts from customers
277,681


41,319


418,629


-


44


-


Payments to suppliers
(378,091)


(781,765)


(1,174,621)


Payments to employees
(105,180)


(120,090)


(424,358)


Interest paid
(81,045)


(19,069)


(81,734)


Income tax paid/(received)
-


(84)


Net cash flows from operating activities
(286,635)


(879,561)


(1,262,168)

Investing activities
Net cash flows from investing activities
-


-


-


Financing activities
Proceeds from issue of share capital
3,146,222


550,796


928,789


Proceeds from borrowings
(400,000)


400,000


400,000


Borrowings from related parties
-


23,073


67,500


Net cash flows from financing activities
2,746,222


973,869


1,396,289


Net increase in cash and cash equivalents
2,459,587


94,308


134,121


Cash and cash equivalents at beginning of year
119,432


(14,689)


(14,689)


Cash and cash equivalents at end of year
2,579,019


79,619


119,432


Interest received

Page 7 Interim Report 30 September 2017
NOTES TO THE FINANCIAL STATEMENTS
1. STATEMENT OF ACCOUNTING POLICIES
Reporting entity
These consolidated financial statements and notes represent those of Lateral Corporation Limited and its
subsidiary Lateral Profiles Limited (the “Group”). References to “Lateral” are used to refer to the Group and
Lateral Corporation Limited (the “Company”).
The parent company, Lateral Corporation Limited, is the ultimate legal parent company of the Group and is a
limited liability company incorporated and domiciled in New Zealand. It is registered under the Companies Act
1993. Lateral is listed on the NZX Alternative Market (“NZAX”). Lateral is a FMC reporting entity under Part 7 of
the Financial Markets Conduct Act 2013 and its financial statements have been prepared in accordance with the
Companies Act 2013 and the Financial Markets Conduct Act 2013.
The registered office and principal place of business are disclosed in the directory to the annual report.
The principal activity of the Group until 31 August was as a developer and distributer of premium digital products
and services that enable commercialisation of the mobile and fixed web using various payment methods.
On 31 August 2017, Lateral completed the planned disposal of the subsidiary Lateral Profiles Limited and Lateral
has subsequently become a “listed shell” to enable a future “reverse acquisition”.
Statement of compliance
The accounting principles adopted are those recognised as appropriate for the measurement and reporting of
financial performance and financial position on the historical cost basis. The accrual basis of accounting has been
used unless otherwise stated and the financial statements have been prepared on a going concern basis (note 3).
The information is presented in New Zealand dollars which is the Company’s functional currency and the Group’s
presentation currency and are rounded to the nearest dollar.
2. SEGMENT INFORMATION
There have been no material changes in the nature of operating segments since 31 March 2017
3. FINANCIAL RISK MANAGEMENT
There have been no material changes in the management of risk or in any risk management policies in the
current period.
4. PROPERTY, PLANT AND EQUIPMENT
There have been no changes in the estimated useful life of key items of plant and equipment.

Page 8 Interim Report 30 September 2017
5. INTANGIBLE ASSETS
There have been no changes in the estimated recoverable amount or estimated useful life of intangibles
6. RELATED PARTY TRANSACTIONS
On 31 August 2017, Golden Tower New Zealand Limited (GTNZ) acquired a 90% shareholding in Lateral
Corporation by subscribing for 463,405,050 new shares for consideration of approximately NZ$3.1 million.
The Company disposed of all of its assets & liabilities to its wholly owned subsidiary Lateral Profiles, including
$0.6 million cash invested by GTNZ.
7. SIGNIFICANT EVENTS AFTER BALANCE DATE
There were no significant events subsequent to 30 September 2017.
8. AUDIT
These interim financial statements are not required to be audited.

Page 9 Interim Report 30 September 2017

BUSINESS DIRECTORY

Company number:
4844319

Directors:
Ka Wo Chan - Chairman
Chong Hoi Sze
Joseph van Wijk

Registered office:
Level 2 Tower Building,
50 Customhouse Quay,
Wellington, 6011

Share Registrar
Link Market Services Limited
Level 7, Zurich House
21 Queen Street
Auckland 1010

Bankers:
Westpac Bank Limited

Solicitors:
Duncan Cotterill
Wellington

Auditors:
BDO, Auckland
Auckland

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1


11 December 2017

NZX Market Announcement

Half Year Results Announcement to the Market
Unaudited result for the six months ended 30 September 2017

Reporting Period

Previous Reporting Period
Six months to 30 September 2017
Six months to 30 September 2016



$ Amount
(NZD ‘000s)
Percentage
Change
Previous
Reporting
Period ($000’s)
Revenue from ordinary activities
127 77.1% 72
Profit/(Loss) from ordinary activities after
tax attributable to security holders
183 205.4% (174)
Net loss attributable to security holders
183 205.4% (174)

Net Tangible Assets per Share 2017

Net Tangible Assets per Share 2016
$0.005
$0.043 negative

Interim/Final Dividend Amount per security Imputed amount per security
Interim No dividend declared N/A
Record Date

Dividend Payment Date
N/A
N/A

Comments


Accompanying this announcement are Lateral
Corporation Limited’s unaudited financial statements for the
half year ended 30 September 2017. These financial statements and
the financial commentary set out in the announcement and interim
report provide additional information required in accordance with
NZAX Listing Rule 10.4.2 and Appendix 1
Lateral Corporation Limited disposed of its wholly owned subsidiary,
Lateral Profiles Limited, on 31 August 2017. Additional information on
the allocation of operating results between the continuing and
discontinued operations is provided in the Statement of
Comprehensive Income