PEB Preliminary Results for Year Ended 31 March 2018
29 May 2018
Company Announcement
PACIFIC EDGE LIMITED PRELIMINARY RESULTS FOR YEAR ENDED 31 MARCH 2018
• Pacific Edge’s preliminary unaudited results for FY18 reflect increasing test volumes and revenues as more
urologists and healthcare organisations adopt Cxbladder into clinical use.
• Pacific Edge has adopted NZ IFRS 15 revenue accounting standard for FY18, with US revenue now recognised
only on a cash basis. Prior year results have been restated in line with the new standard.
• Key Company performance metrics going forward will be, cash receipts and billable tests.
• Under the new accounting basis, Pacific Edge reported:
- Increase in Operating Revenue of 6% on prior year, to $3.4m from test sales
- Operating cash flow of $(18.1)m, in line with expectations and the previous year
- Reported loss of $19.7m for the year
- 28% increase in Laboratory Throughput to 14,446 tests, of which 82% were billable tests
• On a ‘like-for-like’
1
accounting basis, laboratory throughput was 91% of forecast and billable tests were 96% of
forecast, and revenue was 95% of forecast, despite commercial arrangements with Kaiser Permanente not yet
being finalised and slower than planned takeup from the VA.
Reported FY18 results (under the new accounting basis):
(NZ$M) FY18
(unaudited)
FY17 Restated
(unaudited)
FY17: FY18
(% change)
FY17
(Previously Reported)
Operating Revenue 3.4 3.2 6% 8.1
Other Revenue 1.6 1.5 7% 1.4
Total Revenue 5.0 4.7 7% 9.5
Operating Expenses 24.6 27.3
2
(10%) 30.5
Total Comprehensive Loss 19.7 22.6 (13%) 21.0
Net cash outflow to operating
activities
18.1 17.8 1% 17.8
Cash on hand as at 31 March 16.2 14.6 11% 14.6
Performance against forecast (on a ‘like-for-like’ accounting basis
1
):
FY18
(Forecast Oct 2017)
(Unaudited)
FY18
(on ‘like-for-like’
1
basis )
(Unaudited)
Forecast
Achieved (%)
FY17
(Previously Reported)
Total revenue (NZ$m) 12.6 12.0 95% 9.5
Net operating cashflow (NZ$m) (18.0) (18.1) 101% 17.8
Total Laboratory throughput (‘000) 15.8 14.4 91% 11.2
Billable tests (‘000) 12.4 11.9 96% 8.4
FY17 financials have been restated under NZ IFRS 15 to provide meaningful analysis. A reconciliation between the two
accounting standards, with explanations of the transition, will be included in Pacific Edge’s 2018 full audited Financial
Statements, which will be released to NZX by 30 June 2018.
1
‘Like-for-like’ basis assumes the same accounting standards, calculations and assumptions as was used to define the October 2017 forecast.0.0
2
FY17 Operating Expenses included bad debts and doubtful debts expenditure of $3.2m and one-off non-cash cost of winding up the Employee Incentive
Scheme of $2.9m.
29 May 2018
Company Announcement
Results commentary:
Listed cancer diagnostics company, Pacific Edge Limited (NZX: PEB), has today announced its preliminary unaudited
full year results for the year ended 31 March 2018, reporting increased test numbers and revenues as more
urologists and healthcare organisations adopt Cxbladder into clinical use.
In the past 12 months, Pacific Edge has:
• Rolled out the full suite of Cxbladder tests in target markets;
• Received growing clinical recognition and validation of its products highlighting the high performance,
clinical utility and cost benefits of Cxbladder;
• Increased test numbers processed with growing adoption from private and public healthcare organisations;
• Commenced commercial business in South East Asia and recorded initial sales;
• Progressed commercial negotiations with targeted large scale healthcare organisations in the USA,
including Kaiser Permanente and the Centers for Medicare and Medicaid. Pacific Edge has little to no
control over the decision making processes and timings of these large organisations and while these are
taking longer than expected to complete, progress continues to be made; and
• The Company has also been recognised in a number of high profile business reports – TIN Top Ten Hot
Emerging Companies, Deloitte Fast50 New Zealand, Deloitte Asia Pacific Technology Fast500, FT 1000 High
Growth Companies Asia Pacific.
Pacific Edge is commercialising its Cxbladder suite of non-invasive, accurate and simple to use molecular diagnostic
tests for the detection and management of bladder cancer. These allow for better care for patients, better decision
making by physicians and better resourcing for the healthcare sector, and are increasingly being adopted into the
standard of care.
The focus is on changing long standing clinical practices where there have been no new commercial products in
market in the US in the last 16 years
3
. Pacific Edge is the only company in the world to offer four commercial
products covering a single cancer pathway, and the Company’s suite of products is now providing a one stop shop
for urologists.
The increase in the number of tests being processed in the Company’s laboratories reflects growing adoption of
Cxbladder by physicians, both in the US and in NZ. New Zealand accounted for approximately 14% of total tests
processed in FY18.
Chairman of Pacific Edge, Chris Gallaher, said: “The multi-billion dollar US healthcare market remains our most
significant opportunity and we are seeking to position Cxbladder as the preferred diagnostic test of choice for
physicians in a market that offers more than 5 million potential test opportunities per annum.
“Our success will come as large scale healthcare organisations in the US adopt our product into their standards of
care and we are working hard to secure commercial agreements with targeted customers. While this has required
significantly more investment of time and resources than originally anticipated, we are making positive progress.
We are in this for the long haul and we are continuing to lay the foundations for a sustainable future as we work
towards cash flow breakeven.”
3
The last cancer diagnostic test to successfully enter the US market was Abbott’s UroVysion test in 2001-2002
29 May 2018
Company Announcement
CEO David Darling commented: “It has been a busy year for the Company, although commercial progress with key
US customers has been slower than we would have liked, with many of the adoption processes outside our control.
“Pleasingly, clinical studies and papers, as well as the recently published
4
commercial lookback by a leading public
healthcare provider, Canterbury DHB, continue to validate the high performance, clinical utility and cost benefits
of our tests. More and more urologists are now adopting Cxbladder, either alongside or in place of other tests, in
both the public and the private sector.
“We already have two of our four targeted, significant US customers under contract and, while it is taking time to
build scale in these organisations as expected, we are now starting to see a steady progression of repeat orders for
tests coming through. Our priority remains to conclude negotiations with Kaiser Permanente and attain inclusion
in the Local Coverage Determination for reimbursement from the Centers for Medicare and Medicaid as rapidly as
possible.”
Adoption of NZ IFRS 15 Reporting Standard
As previously advised, the application of NZ IFRS 15 results in revenue being recognised when the cash is received for
US based customers. This accounting treatment is likely to continue until such time as Pacific Edge is included in the Local
Coverage Determination (LCD) and coverage contracts are established with commercial insurers. Both of these will
provide significant positive impacts on the timing and collectability of revenue from the individual patient contracts.
The US reimbursement system is complex, and commercial agreements with US insurance payers are required to
enable reimbursement on a timely basis. Without these, payment can take anywhere from 1 to 24 months to be
received, with the bulk of cash receipts coming within 7 to 12 months.
The Centers for Medicare and Medicaid are seen as an industry leader and being included in the Local Coverage
Determination will facilitate Pacific Edge’s commercial negotiations with other insurance payers. As Pacific Edge
signs new agreements with insurance payers in the US and payment terms are guaranteed, it is likely that revenue
will start to be accrued again, in advance of the payment being received.
The Board believes this new reporting model provides a more transparent and clear view of Pacific Edge’s cash
revenues, particularly from the US.
Pacific Edge FY18 Preliminary Unaudited Financial Results
Pacific Edge’s FY18 preliminary unaudited results for FY18 reflect increasing sales and revenue, and were in line
with the expectations given in the Company’s guidance in October 2017.
On a like for like accounting basis, laboratory throughput was 91%, billable tests were 96% of forecast, and revenue
was 95% of forecast, despite commercial arrangements with Kaiser Permanente not yet being finalised and sales
to the Veterans Administration only now starting to flow from the initial centres targeted. Both of these were
planned to make contributions to the FY18 results.
4
CDHB presented the findings of their analysis of the commercial use of Cxbladder Triage in their business, to the USANZ annual meeting in Melbourne in
2017, was published in the British Journal of Urology International (BJUI)
29 May 2018
Company Announcement
Under the new accounting basis, revenue from test sales increased 6% to $3.4 million with total revenue for the
year of $5.0 million. This excludes US tests where cash payment has yet to be received, along with tests completed
for patients covered by the CMS, which account for up to 50% of US laboratory throughput and for which Pacific
Edge will seek reimbursement when it is included in the LCD. These tests remain in the billing and reimbursement
process and revenue will be accounted for when the cash is received.
Laboratory throughput is a cornerstone measure of the growth of the business and includes both commercial sales
and tests from User Programmes. Throughput increased by 29% to 14,400 tests in FY18, of which 82% were billable
tests (FY17: 78%).
Total operating expenses were $24.7 million, reflecting the increasing laboratory throughput and investment into
sales and marketing, particularly in the US.
Cash receipts from customers of $3.4 million reflect the long reimbursement processes, particularly in the US, with
a large portion of cash received in FY18 for tests sold in prior years. Revenue outgrew expenses by a net 13%, with
total expenses down 10% on FY17. Net operating cashflows were in line with expectations at $(18.1) million.
Overall, the Company reported a net loss of $19.7 million for the year, an improvement of 13% on the prior year
loss of $22.6 million.
Pacific Edge had $16.2 million in cash and cash equivalents at 31 March 2018, including proceeds from the capital
raise in November 2017. The Company remains confident that cash sales will grow progressively over FY19 and is
focused on reaching a cash flow breakeven position.
Given the adoption of the new reporting standard and the longer time than anticipated to finalise commercial
agreements with Kaiser and attain inclusion in the Local Coverage Determination (LCD) for the CMS patients, the
Company expects to provide updated guidance for FY19 later in the calendar year.
ENDS
For more information contact:
David Darling
Chief Executive Officer
Pacific Edge Ltd
P: +64 (3) 479 5800
Full Year Results Conference Call
Pacific Edge will host a conference call today at 1030am NZST to review the FY18 results.
To attend the conference call, participants will need to dial into one of the numbers below at least 5-10 minutes prior to the scheduled call
time and identify yourself to the operator. When prompted, please quote the confirmation code: 7186210.
The results presentation will be released to the NZX and can also be streamed live by following the link. Please note that you need to dial in
to hear the audio:https://slideassist.webcasts.com/starthere.jsp?ei=1193240
Media are invited to contact the company directly for an interview with management.
Dial toll free from NZ: 0800 423 970
Dial toll free from Australia: 1800 573 793
Dial toll free from USA: 800 239 9838
Dial toll free from Singapore: 800 186 5107
---
FY18 Results Presentation
For the twelve months to 31 March 2018
29 May 2018
Pacific Edge FY18 Presentation
FY18 OVERVIEW
Our aim is to change long standing clinical practices and encourage adoption of
Cxbladder:
ü
More Customers
: Continued focus on building customer base, specifically in
the US, the world’s largest healthcare market. Singapore first commercial
customer of scale
ü
Transformational Customers
: Progressed commercial negotiations with
targeted large scale healthcare organisations including Kaiser Permanente and
the Centersfor Medicare and Medicaid. Global first Cxbladderenters
guidelines with large public healthcare provider in NZ
ü
Increasing Throughput
: Increasing adoption of Cxbladder by urologists in the
private and public sectors, resulting in growing sales and revenue
ü
More Products
: Rollout of Cxbladder Monitor in the US and launch of
Cxbladder Resolve in New Zealand and Australia
ü
Growing Clinical Recognition
: Growing clinical recognition and validation. Mid-
Central DHB signs up for all four Cxbladder products. CPT codes issued in the
USA for Cxbladder products provide national recognition and precursor to
product price setting.
Pacific Edge FY18 Presentation
MARKETS
USA remains the primary focus; New Zealand is moving quickly
Slide 3
United States:
ØGrowing number of urologists transitioning from User Programmes to
commercial customers
ØGranted CPT Codes by American Medical Association precedes price
setting
ØSigned contract with MediNcreaseHealthPlan provides access to
Cxbladderfor more US customers
New Zealand
: Addition of Cxbladder to the guidelines at CDHB . Mid Central DHB
signs up for all four Cxbladder products. Waitemata DHB signs up for Cxbladder
replacing the gold standard cystoscopy. Majority of NZ’s large DHBs now actively
using Cxbladder
Australia
: Disappointing uptake to date. Working with distribution partner to drive
trial and adoption focus is on the large institutions to drive uptake
Singapore
: Signed commercial agreement with Raffles Medical Group Singapore.
Four key hospitals underway with User Programmes
Pacific Edge FY18 Presentation
TRANSFORMATIONAL CUSTOMERS
Continue to be primary focus and opportunity for Pacific Edge
Slide 4
Ø
Kaiser Permanente
: Continuing commercial discussions. Working with Kaiser’s staff on necessary
business elements to ensure that the start-up of commercial tests can occur shortly after an
agreement is reached
ü
Veterans Administration
: Federal supply schedule contract completed, sets price, now targeting 14
larger VA centres, early sales from two of the initial five centres targeted. Gaining traction at a slower
pace than anticipated. User Programmes will be necessary to grow adoption. Approx330 VA centres
with similar clinical and financial needs as we see in NZ’s DHB’s
ü
TRICARE
: TRICARE provide healthcare to the active military and some veterans with a total of 9.4
million lives under coverage. The completed agreements with TRICARE and the Federal Supply
Schedule contract provide a contracted price for all active and retired military.
Ø
Centersfor Medicare and Medicaid (CMS):
Continuing to work through the process required to gain
the LCD, which will enable timely and consistent payments patients covered by Medicare.
ü
Canterbury District Health Board (CDHB)
: In a global first, CDHB have added Cxbladder Triage into
their guidelines and replaced cytology and the gold standard cystoscopy in the initial work-up of all
haematuria patients
COMPLETED
COMPLETED
IN PROGRESS
COMPLETED
IN PROGRESS
Pacific Edge FY18 Presentation
ØMid-central DHB sign-up for all four Cxbladder products
ØCxbladder Resolve now available in Australia; soft launch commenced in the US in December 2017 -
commercial launch will follow peer reviewed science publication
ØRollout of Cxbladder Monitor across the US continues... adoption steadily increasing
ØPublication of multiple clinical papers highlighting the continued high performance, clinical utility and cost
benefits of Cxbladder. These key factors underpin clinical and budgetary decision making
ØGlobal first: Canterbury DHB ‘commercial lookback’ on 12 months of successful commercial use:
-Leads to broader use
-Cxbladder replaces gold-standard cystoscopy
-Highlights very successful performance of Cxbladder, driving ongoing positive adoption by other large
healthcare providers and physician led discussions to have Cxbladder accepted into their Standard of
Care
SUITE OF PRODUCTS DRIVING COMMERCIAL ADOPTION
Increasing availability of full product suite in target markets driving uptake
Slide 5
Pacific Edge FY18 Presentation
SALES CHANNELS
Shifted focus to large healthcare institutions
Slide 6
ØSales focus on large healthcare institutions has increased in all target
markets following the success achieved in NZ
ØDedicated US sales team -additional resource focused on institutions
ØUser Programmes remain the primary driver for encouraging trial and
adoption
ØFocus on digital marketing with specific campaigns around key period –
Bladder Cancer Awareness Month, Men’s Health
ØWorking with academic centres and hospitals to gain acceptance of
Cxbladder into their care pathways
ØRecognition in a number of high profile business reports –TIN Top Ten Hot
Emerging Companies, Deloitte Fast50 New Zealand, Deloitte Asia Pacific
Technology Fast500, FT 1000 High Growth Companies Asia Pacific
Pacific Edge FY18 Presentation
PERFORMANCE IN LINE WITH PEERS
Cxbladder sales tracking well; in line with other leading molecular diagnostic companies in the US
Gaining coverage and reimbursement decisions
will be key to driving volume
ØSales of Cxbladder are currently in line with
those of Genomic Health’s Oncotype Dx and
MDxHealth’s ConfirmMDxat the time of their
launch
ØContinuing to gain coverage and positive
reimbursement decisions will be crucial to help
accelerate test volume
ØGuideline inclusion has also served as a key
catalyst for sales volume and physician
adoption for other diagnostic peers
Test Volume of Molecular Diagnostics Companies post launch
Genomic
Health
*Cxbladder Pacific Edge Year 3 estimate from October 2017 Forecast
Cxbladderis tracking
in line with other US
MolDxcompanies
Pacific Edge FY18 Presentation
PRELIMINARY FINANCIAL PERFORMANCE FOR FY18
Slide 8
Pacific Edge FY18 Presentation
USA B2C REIMBURSEMENT PROCESS
ØThe US reimbursement system is complex
ØCurrently, approx. 60% of Pacific Edge customers are directly
with the patient (B2C relationship)
ØPayment can take anywhere from 1 to 24 months to be received
as the majority involves payment by either private or public
insurance, with the bulk of cash receipts coming within 7 to 12
month period
ØCommercial agreements with large institutions and private
insurance companies will increase collectability of revenue
ØThe Centersfor Medicare and Medicaid are seen as
reimbursement leaders. attaining a Local Coverage
Determination and price will provide payment for tests provided
to patients covered by the CMS and faster collection times
ØLCD and price setting for the CMS tests facilitate Pacific Edge’s
commercial negotiations with other insurance payers
ØPacific Edge sales teams increase focus on institutional
healthcare organisations
Slide 9
Pacific Edge FY18 Presentation
As previously advised, Pacific Edge has adopted the new revenue accounting standard,
NZ IFRS 15, for the 2018 financial year. This means that Pacific Edge now only
recognises, in its financial statements, revenue for its US customers when cash payment
is received. All other US tests sold in that financial period will remain active in the billing
and reimbursement process until the cash is received.
Previously the revenue statements in the financial accounts included both cash
received and accrued revenue for tests that had been billed in the financial year but
where the revenue had yet to be received. See Chart on next page.
As Pacific Edge signs new agreements with insurance payers in the US and payment
terms are guaranteed, it is likely that revenue will be accrued again, in advance of the
payment being received.
The Board believes this new reporting model provides a more representative view of
Pacific Edge’s cash revenues, particularly from the US.
FY17 financials have been restated under NZ IFRS 15 to provide meaningful analysis. A
reconciliation will be available in Pacific Edge’s 2018 full Financial Statements when they
are released to NZX by the end of June.
Slide 10
NEW REVENUE REPORTING MODEL
Adoption of IFRS 15 –US cash based revenue recognition
ØNew revenue standards (NZ IFRS
15) results in only the cash
component of the revenue being
recognisedfor US patients in
FY18
ØUS revenue that was previously
reported as accrued revenue is
now not recogniseduntil the cash
for those sales is received
ØAll tests sold and billed will
continue on in the Pacific Edge
billing and reimbursement
process and actively chased for
collection and booked as the cash
is received
Pacific Edge FY18 Presentation
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
Lab Throughput
(FY17)
Lab Throughput
(FY18)
Total Revenue
(FY17)
Total Revenue
(FY18)
Total Revenue
FY18 NZ IFRS 15
Pacific Edge Performance Metrics
FY17 vs FY18
Previous accounting standard
New accounting
standard
PERFORMANCE AGAINST FORECAST
Test throughput grows by 29%
Slide 11
ACRUALL REVENUE FY17
ACRUALL REVENUE FY18
CASH FY17
CASH FY18
•October 2017 forecast based on
the assumptions that the
commercial agreement with Kaiser
Permanente would be in place
from February 2018 and faster
traction with sales to the Veterans
Administration would occur. Both
have taken longer than anticipated
üDespite this not yet having
occurred, Pacific Edge achieved
95% of revenue target, 96% of
billable test target and 91% of
Laboratory Throughput target.
See slide 21 for numerical breakdown
of forecast performance
Cash
Cash
Cash
1. All financial results reported in this graph are unaudited
Pacific Edge FY18 Presentation
FY18 SNAPSHOT
Using the new revenue reporting model: US revenue on cash basis
Slide 12
Performance ($ millions)FY18 NZ IFRS
1
(Unaudited)
FY17 Restated
1
(NZ IFRS 15)
% ChangeFY17 (Previously
Reported)
Operating Revenue
3.43.2 6%8.1
Other Revenue
1.61.57%1.4
Total Revenue
5.04.76%9.5
Operating Expenses
24.627.3-10%30.5
Net Loss
(19.7)(22.6)-13%(21.0)
Net Operating Cashflow
(18.1)(17.8)1%(17.8)
Cash on hand as at 31 March
16.214.611%14.6
FY17 financials have been restated under NZ IFRS 15 to provide meaningful analysis. A reconciliation will be available in Pacific Edge’s 2018 full
Financial Statements which will be released to NZX by 30 June.
1. All financials reported in this table as calculated under the new accounting standard NZ IFRS 15 and are unaudited
Pacific Edge FY18 Presentation
FY17: FY18 REVENUE BRIDGE
Sales revenue increased +6% to $3.4m
REVENUE GROWTH
ü6% increase in revenue received for test sales to
$3.4 million
üPositive growth in product sales, predominantly
in the USA:
•Increasing sales from existing and new
customers
•Initial sales from VA
Adoption of NZ IFRS 15:
•Smaller headline revenue number
•FY17 restated under new reporting standard
•US B2C revenue only recognised when cash
payment received
Slide 13
Outstanding US B2C revenue no
longer recognised under NZ IFRS 15
Grant
funding and
other income
Sales
$8.1m
$5.0m
$4.7m
Pacific Edge FY18 Presentation
LABORATORY THROUGHPUT
Cornerstone measure of the growth of the business
0
2000
4000
6000
8000
10000
12000
14000
16000
FY14FY15FY16FY17FY18
Laboratory Throughput
(Includes commercial tests and User Programmes)
29%
increase
(FY17:FY18)
Slide 14
ü
14,400 tests processed
in FY18 including
commercial tests and User Programmes
ü
Approx. 82% of tests were billable
in FY18
compared to 78% in FY17
ØApprox. 23,000 tests estimated to be
undertaken in FY19 (includes an estimate of
throughput for both Kaiser Permanente and the
CMS)
Pacific Edge FY18 Presentation
PROFIT AND LOSS
Revenue outgrows expenses by a net 13%
($ millions)
FY18
(NZ IFRS 15)
1
FY17
Restated
1
Change
TOTAL REVENUE
5.04.7
7%
LaboratoryExpenses2.11.4
42%
Research4.96.6
(25%)
Sales and Marketing2.21.9
15%
Employee Incentive
Scheme
-2.9
Bad Debts--
Doubtful Debts--
Other 15.514.4
7%
TOTAL EXPENSES
24.627.3
(10%)
Total Loss
(19.7)(22.6)
(13%)
ü
Revenue outgrowing expenses by a net 13%
(FY18
on FY17): Total Revenue +7%; Op Expenses -10%
ØContinued investment into four strategic areas:
People, Products, Market Expansion and Intellectual
Property
ØBad and Doubtful Debts relating to US accrued
revenue no longer recognised under NZ IFRS 15
ØEmployee Incentive Scheme concluded in FY17 and
incentive dispersed –non-cash item
ØOverall, Pacific Edge reported a Net Loss of
$(19.7)m for the year, in line with management
expectations, and a 13% improvement on FY17
Slide 15
1. All financials reported in this table as calculated under the new accounting standard NZ IFRS 15 and are unaudited
Pacific Edge FY18 Presentation
OPERATING CASHFLOW
In line with previous year and management expectations
ØPayment terms currently average seven to 12
months lag between completion of test and
payment by relevant US payer (insurer).
Improvement expected as commercial agreements
with US insurers, large institutions and CMS are
achieved
ØCompleted $21.3 million rights issue in November
2017
ØCash and cash equivalents $16.2 million as at 31
March 2018.
ØDebt free with funding from capital and technology
grants for new product development,
commercialisation, USA rollout and South East Asian
market initiation
NET OPERATING CASHFLOWS
($ millions)
FY18
(NZ IFRS 15)
1
FY17
Restated
1
Receiptsfrom:
-customers
-grant providers
3.4
0.9
3.2
1.4
Interest received0.10.7
Payments to suppliers andemployees22.623.2
NetCash Flows To Operating Activities
(18.1)(17.8)
Slide 16
1. All financials reported in this table as calculated under the new accounting standard NZ IFRS 15 and are unaudited
Pacific Edge FY18 Presentation
OUTLOOK
FY19 Revenue Uplift Expected In Line With Annual Trends
ØFocus on concluding contract with Kaiser Permanente and attaining LCD for
CMS patients, which will ensure cash uplift and timely reimbursement from
CMS
ØContinuing uplift in commercial sales expected from existing and new
customers
ØBuild on initial sales from targeted VA centres and expand number of centres
being targeted
ØGiven the adoption of the new reporting standard and the longer time than
anticipated to finalise commercial agreements with Kaiser and attain inclusion
in the LCD for CMS patients, the company expects to provide updated
guidance for FY19 later in the calendar year.
Slide 17
Pacific Edge FY18 Presentation
www.pacificedge.co.nz
www.cxbladder.com
www.pacificedgedx.com
David Darling
Chief Executive Officer
Pacific Edge Limited
Te l : + 6 4 3 4 7 9 5 8 0 2 M o b i l e : + 6 4 2 1 7 9 7 9 8 1
Email: david.darling@pelnz.com
Pacific Edge FY18 Presentation
APPENDIX: OUR PURPOSE AND STRATEGY
Delivering Innovative Solutions for the Early Detection and Management of Cancer
ØFocus on haematuria and urothelial cancer;
commercialising a suite of Cxbladder tests
(one-stop-shop)
ØThe United States is the world’s largest
healthcare market and our primary focus.
ØHave commercial partnerships in New
Zealand and Australia and are establishing a
presence in Singapore.
ØEstimate that there are up to 5 million test
opportunities for Cxbladder on patients with
urothelial cancer in these markets every
year, with an estimated total market size of
up to US$7.5 billion.
ØTargeting high growth. Four main areas of
investment: People, Intellectual Property,
Market Expansion and Product Development
Slide 19
Pacific Edge FY18 Presentation
PERFORMANCE AGAINST FORECAST
Numerical breakdown
FY18 Forecast
(Unaudited)
FY18 on ‘like for like’
basis (Unaudited)
% of
Forecast Achieved
FY17 Previously
Audited and Reported
Total Revenue ($m)12.612.095%9.5
Operating cashflow ($m)(18.0)(18.1)101%17.8
Laboratory Throughput15,80014,40091%11.2
Billable Tests 12,40011,90096%8.4
Slide 20
Like for like basis using same accounting assumptions as for the October 2017 forecast
Pacific Edge FY18 Presentation
APPENDIX: NOTES TO THE FORECAST
US Revenue makes up approximately 90% of Pacific Edge’s total revenue and remains our focus
US revenue makes up approximately 90% of
Pacific Edge’s total revenue with two
significant contributors: CentersFor Medicare
and Medicaid services (CMS) and private
insurance companies (Private Payers)
Pacific Edge’s revenue model is common in the
US while companies build commercial volume
and apply for their Local Coverage
Determination.
REIMBURSEMENT AND PAYMENT PROCESS FOR CMS AND PP
Centres For Medicare and Medicaid Services (CMS):
Currently accounts for 50% of the US tests. Proportion
will decrease as PPs enter into contract
Private Payers: Many different types of cover; will
provide the majority of Pacific Edge’s revenue in
future
Process Cxbladder test for PP funded patient
Invoicing and collection of revenue managed by
Pacific Edge’s billing and reimbursement
contractor, Quadax
Time lag between processing of test and payment
creates distortion between matching of revenue
accruals to cash receipts
Application for Local Coverage Determination (LCD):
All companies seeking reimbursement from CMS
must obtain an LCD, which is a long, iterative process
Receive LCD which enables reimbursement for CMS
patients
Negotiate contract price –based on commercial
transactions in past 30 to 90 days ietests for PP
funded patients
Seek reimbursement for CMS tests previously
processed and invoiced
Normal terms of trade for all future CMS
transactions
Process Cxbladder test for CMS patient
Invoice CMS and held on account until LCD received
Out of contract
: Higher price per test is achieved
but but slow payment terms anywhere between
1 to 12 months
Negotiate contract and highest possible price
Normal terms of trade for all future PP transactions
Pacific Edge FY18 Presentation
DISCLAIMER
Information
The information in this presentation is an overview and does not contain all information necessary to make an investment decision. It is intended to constitute a
summary of certain information relating to the performance of Pacific Edge Limited . The information in this presentation is of a general nature and does not purport
to be complete. This presentation should be read in conjunction with Pacific Edge's other periodic and continuous disclosure announcements, which are available at
nzx.com.
Not financial product advice
This presentation is for information purposes only and is not financial or investment advice or a recommendation to acquire Pacific Edge securities, and has been
prepared without taking into account the objectives, financial situation or needs of individuals. Pacific Edge, its directorsand employees do not give or make any
recommendation or opinion in relation to acquiring or disposing of shares. In making an investment decision, investors must relyon their own examination of Pacific
Edge, including the merits and risks involved. Investors should consult with their own legal, tax, business and/or financial advisors in connection with any acquisition of
securities.
Future performance
This presentation contains certain 'forward-looking statements', for example statements concerning the development and commercialisation of new products,
regulatory approvals, customer adoption and results of future clinical studies. Forward-looking statements can generally be identified by the use of forward-looking
words such as, 'expect', 'anticipate', 'likely', 'intend', 'could', 'may', 'predict', 'plan', 'propose', 'will', 'believe', 'forecast', 'estimate', 'target', 'outlook', 'guidance' and
other similar expressions. The forward-looking statements contained in this presentation are not guarantees or predictions of future performance and involve known
and unknown risks and uncertainties and other factors, many of which are beyond the control of Pacific Edge and may involve significant elements of subjective
judgement and assumptions as to future events which may or may not be correct. There can be no assurance that actual outcomes will not materially differ from
these forward-looking statements. A number of important factors could cause actual results or performance to differ materially from the forward-looking statements.
The forward-looking statements are based on information available to Pacific Edge as at the date of this presentation. Except as required by law or regulation
(including the NZX Main Board Listing Rules), Pacific Edge undertakes no obligation to provide any additional or updated information whether as a result of new
information, future events or results or otherwise.
No representation
To the maximum extent permitted by law, Pacific Edge and its advisers, affiliates, related bodies corporate, directors, officers, partners, employees and agents make no
representation or warranty, express or implied, as to the currency, accuracy, reliability or completeness of information in thispresentation.
Slide 22
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FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2018
PRELIMINARY
18
PACIFIC EDGE LIMITED PRELIMINARY FINANCIAL STATEMENTS 2018
Financial Information
Statement of Comprehensive Income 2
Statement of Changes in Equity 3
Balance Sheet 4
Statement of Cash Flows 5
Reconciliation of (Loss) with Net Operating Cash Flows 6
Notes to the Financial Statements
Summary of Accounting Policies 7
Segment Information 9
Contents
1
PACIFIC EDGE LIMITED PRELIMINARY FINANCIAL STATEMENTS 2018
2018
($000)
(Unaudited)
2017
($000)
RESTATED
(Unaudited)
REVENUE
Operating Revenue 3,400 3,208
Total Operating Revenue 3,400 3,208
Other Income 1,242 1,105
Interest Income 231 249
Foreign Exchange Gain 129 119
Total Revenue and Other Income 5,002 4,681
OPERATING EXPENSES
Laboratory Operations 2,060 1,446
Research 4,914 6,570
Sales and Marketing 2,202 1,923
Employee Equity Equivalent Incentive Scheme- 2,925
Other Expenses 15,470 14,403
Total Operating Expenses 24,646 27,267
NET (LOSS) BEFORE TAX (19,644) (22,586)
Income Tax Expense--
(LOSS) FOR THE YEAR AFTER TAX (19,644) (22,586)
Items that may be reclassified to profit or loss:
Translation Foreign Operations (83) (43)
TOTAL COMPREHENSIVE (LOSS) atttributable to equity
holders of the Company
(19,727) (22,629)
Earnings per share for profit attributable to the equity
holders of the Company during the year
Basic and Diluted Earnings Per Share(0.045)(0.057)
Statement of Comprehensive Income
For the year ended 31 March 2018
These Financial Statements are to be read in conjunction with the Notes to the Financial Statements
2
PACIFIC EDGE LIMITED PRELIMINARY FINANCIAL STATEMENTS 2018
Statement of Changes in Equity
For the year ended 31 March 2018
These Financial Statements are to be read in conjunction with the Notes to the Financial Statements
Share Capital
($000)
(Unaudited)
Retained
Earnings
($000)
RESTATED
(Unaudited)
Share Based
Payments
Reserve
($000)
(Unaudited)
Foreign
Currency
Translation
Reserve
($000)
RESTATED
(Unaudited)
Total Equity
($000)
RESTATED
(Unaudited)
Balance as at 31 March 2016 100,012 (73,527) 2,404 918 29,807
Adjustment on Adoption of NZ IFRS 15
(net of tax)
- (4,362)- 88 (4,274)
Restated Balance as at 31 March 2016 100,012 (77,889) 2,404 1,006 25,533
Loss After Tax (as restated)- (22,586)- - (22,586)
Other Comprehensive Income (as
restated)
- - - (43) (43)
TOTAL COMPREHENSIVE (LOSS)
attributable to equity holders of the
Company
- (22,586)- (43) (22,629)
Transations with owners in their capacity
as owners:
Issue of Share Capital (net of expenses) 8,659 - - - 8,659
Issue of Ordinary Shares - Equity Share
Scheme
2,925---2,925
Share Based Payment - Employee Share
Options
- - 486 - 486
Balance as at 31 March 2017 111,596 (100,475) 2,890 963 14,973
Balance as at 31 March 2017 111,596 (100,475) 2,890 963 14,973
Loss After Tax- (19,644)- - (19,644)
Other Comprehensive Income- - - (83) (83)
TOTAL COMPREHENSIVE (LOSS)
attributable to equity holders of the
Company
- (19,644)- (83) (19,727)
Transations with owners in their capacity
as owners:
Issue of Share Capital (net of expenses) 20,020 - -- 20,020
Exercising of Employee Share Options112-(18)-94
Share Based Payments - Employee
Remuneration
96---96
Share Based Payment - Employee Share
Options
- - 1,183 - 1,183
Balance as at 31 March 2018 131,824 (120,119) 4,055 880 16,640
3
PACIFIC EDGE LIMITED PRELIMINARY FINANCIAL STATEMENTS 2018
Balance Sheet
As at 31 March 2018
These Financial Statements are to be read in conjunction with the Notes to the Financial Statements
2018
($000)
(Unaudited)
2017
($000)
RESTATED
(Unaudited)
2016
($000)
RESTATED
(Unaudited)
CURRENT ASSETS
Cash and Cash Equivalents 5,242 6,564 4,160
Short Term Deposits 11,000 8,000 20,000
Receivables 1,064 663 1,456
Inventory 752 824 707
Other Assets 472 490 496
Total Current Assets 18,530 16,541 26,819
NON-CURRENT ASSETS
Property, Plant and Equipment 854 837 990
Intangible Assets 281 329 247
Total Non-Current Assets 1,135 1,166 1,237
TOTAL ASSETS 19,665 17,707 28,056
CURRENT LIABILITIES
Payables and Accruals 2,926 2,734 2,523
Finance Leases 73 - -
Total Current Liabilities 2,999 2,734 2,523
NON-CURRENT LIABILITIES
Finance Leases 26 - -
Total Non-Current Liabilities 26 - -
TOTAL LIABILITIES 3,025 2,734 2,523
NET ASSETS 16,640 14,973 25,533
Represented by:
EQUITY
Share Capital 131,824 111,596 100,012
Accumulated Losses (120,119) (100,475) (77,889)
Share Based Payments Reserve 4,055 2,890 2,404
Foreign Currency Translation Reserve 880 963 1,006
TOTAL EQUITY 16,640 14,973 25,533
4
PACIFIC EDGE LIMITED PRELIMINARY FINANCIAL STATEMENTS 2018
Statement of Cash Flows
For the year ended 31 March 2018
These Financial Statements are to be read in conjunction with the Notes to the Financial Statements
2018
($000)
(Unaudited)
2017
($000)
RESTATED
(Unaudited)
CASH FLOWS TO OPERATING ACTIVITIES
Cash was provided from:
Receipts from Customers 3,420 3,198
Receipts from Grant Providers 944 1,418
Interest Received 115 732
4,479 5,348
Cash was disbursed to:
Payments to Suppliers and Employees 22,575 23,210
Net GST Cashflow 4 (25)
22,579 23,185
Net Cash Flows to Operating Activities (18,100) (17,837)
CASH FLOWS TO INVESTING ACTIVITIES:
Cash was provided from:
Proceeds from Short Term Deposits 8,000 20,000
8,000 20,000
Cash was disbursed to:
Purchase of Short Term Deposits 11,000 8,000
Capital Expenditure on Plant and Equipment195209
Capital Expenditure on Intangible Assets 140 270
11,335 8,479
Net Cash Flows to Investing Activities (3,335) 11,521
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash was received from:
Ordinary Shares Issued 21,318 8,750
Exercising of Share Options96 -
21,412 8,750
Cash was disbursed to:
Repayment of Capital Element of Finance Leases 59 -
Issue Expenses 1,296 91
1,355 91
Net Cash Flows From Financing Activities 20,057 8,659
Net increase (decrease) in Cash Held (1,378) 2,343
Add Opening Cash Brought Forward 6,564 4,160
Effect of exchange rate changes on net cash 56 61
Ending Cash Carried Forward 5,242 6,564
5
PACIFIC EDGE LIMITED PRELIMINARY FINANCIAL STATEMENTS 2018
Reconciliation of (Loss) with Net Operating Cash Flows
For the year ended 31 March 2018
GROUP
2018
($000)
(Unaudited)
2017
$000
RESTATED
(Unaudited)
Net Loss for the Period (19,644) (22,586)
Add Non Cash Items:
Depreciation 316 353
Loss on Disposal of Property, Plant and Equipment 10 -
Amortisation 188 189
Employee Share Options 1,183 485
Issue of Employee Incentive Scheme Shares- 2,925
Employee Bonuses Paid in Shares in Lieu of Cash 96 -
Effect of Exchange Rates on Net Cash (130) (95)
Total Non Cash Items 1,663 3,857
Add Movements in Other Working Capital items:
Decrease (Increase) in Receivables and Other Assets (383) 798
(Increase) in Inventory 72 (116)
Increase (Decrease) in Payables and Accruals 192 211
Total Movement in Other Working Capital (119) 892
Net Cash Flows to Operating Activities (18,100) (17,837)
6
PACIFIC EDGE LIMITED PRELIMINARY FINANCIAL STATEMENTS 2018
1. SUMMARY OF ACCOUNTING POLICIES
Reporting Entity
The unaudited preliminary consolidated financial statements presented for the year ended 31 March 2018
are for Pacific Edge Limited (the ‘Company’) and its subsidiaries (collectively referred to as the ‘Group’).
The Group’s purpose is to research, develop and commercialise new diagnostic and prognostic tools for the
early detection and management of cancers.
Pacific Edge Limited is registered in New Zealand under the Companies Act 1993 and is a Financial Markets
Conduct (FMC) reporting entity under Part 7 of the Financial Markets Conduct Act 2013. The financial
statements of the Group have been prepared in accordance with the requirements of the Financial Markets
Conduct Act 2013 and the NZX Main Board Listing Rules. The financial statements presented are those of
the Group, consisting of the Parent entity, Pacific Edge Limited (“the Company”) and its subsidiaries. The
reporting entity is listed on the New Zealand Stock Exchange (NZX).
Basis of Preparation
These consolidated financial statements of the Group have been prepared in accordance with Generally
Accepted Accounting Practice in New Zealand (NZ GAAP). The Group is a for-profit entity for the purposes
of complying with NZ GAAP. The unaudited preliminary consolidated financial statements comply with
New Zealand equivalents to International Financial Reporting Standards (NZ IFRS), other New Zealand
accounting standards and authoritative notices that are applicable to entities that apply NZ IFRS. The
unaudited preliminary consolidated financial statements also comply with International Financial Reporting
Standards.
The unaudited preliminary consolidated financial statements are presented in New Zealand Dollars, which
is the Parent’s functional currency and Group’s presentation currency and all values are rounded to the
nearest thousand dollars ($000). The accounting principles recognised as appropriate for the measurement
and reporting of earnings, cash flows and financial position on an historical cost basis have been used.
The Statement of Comprehensive Income and Statement of Cash Flows have been prepared so that all
components are stated exclusive of GST. All items in the Balance Sheet are stated net of GST, with the
exception of receivables and payables.
Basis of Consolidation
The following entities and the basis of their inclusion for consolidation in these financial statements are as
follows:
Name of Subsidiary
Place of
Incorporation
(or registration)
& Operation
Principal Activity
Ownership Interests
& Voting Rights
2018
%
2017
%
Pacific Edge Diagnostics New Zealand LimitedNew Zealand
Commercial Laboratory
Operation
100100
Pacific Edge Pty LtdAustralia
Biotechnology Research
& Development
100100
Pacific Edge Diagnostics USA LtdUSA
Commercial Laboratory
Operation
100100
Pacific Edge Diagnostics Singapore Pte LtdSingapore
Biotechnology Research
& Development
100100
Pacific Edge Analytical Services LimitedNew ZealandDormant Company100100
Notes to the Financial Statements
For the year ended 31 March 2018
7
PACIFIC EDGE LIMITED PRELIMINARY FINANCIAL STATEMENTS 2018
The unaudited preliminary consolidated financial statements incorporate the assets and liabilities of all
subsidiaries of Pacific Edge Limited as at 31 March 2018 and the results of all subsidiaries for the year then
ended. All subsidiaries have the same balance date as the Company of 31 March.
Pacific Edge Limited consolidates all entities, where Pacific Edge Limited has the capacity to control, as
subsidiaries in the Group financial statements. Control is achieved when the Company:
- has power over the investee;
- is exposed, or has rights, to variable returns from involvement with the investee; and
- has the ability to use its power to affect its returns.
Subsidiaries which form part of the Group are consolidated from the date on which control is transferred to
the Company. They are de-consolidated from the date that control ceases.
The acquisition method of accounting is used to account for business combinations by the Group. The
consideration transferred for the acquisition of a subsidiary is the fair value of the assets transferred, the
liabilities incurred and the equity interest issued by the Group.
The consideration transferred includes the fair value of any asset or liability resulting from a contingent
consideration arrangement. Acquisition-related costs are expensed as incurred. Identifiable assets acquired
and liabilities and contingent liabilities assumed in a business combination are measured initially at their
fair values at the acquisition date. On an acquisition-by-acquisition basis, the Group recognises any non-
controlling interest in the acquiree either at fair value or at the non-controlling interest’s proportionate
share of the acquiree’s net assets.
Inter-company transactions, balances and unrealised gains on transactions between Group companies are
eliminated. Unrealised losses are also eliminated. Accounting policies of subsidiaries have been changed
where necessary to ensure consistency with the policies adopted by the Group.
Statement of Cash Flows Restatement
An error was found in the 31 March 2017 Statement of Cash Flows during September 2017. Bad Debts
and Doubtful Debts expenses were incorrectly included in the 31 March 2017 Statement of Cash Flows as
Operating Cash Expenditure items, rather than being applied against Operating Cash Receipts. The net
effect of this error on 31 March 2017 Net Operating Cash Flows was nil, but both Receipts from Customers &
Grant Providers and Payments to Suppliers & Employees were overstated in the 31 March 2017 Statement of
Cash Flows by approximately $3.2m. The corrected 31 March 2017 Statement of Cash Flows was released to
NZX on the 27th of September 2017 and the corrected 31 March 2017 amounts are shown in the Statement
of Cash Flows reported in these Financial Statements.
This error had no impact on the 31 March 2017 Statement of Comprehensive Income, Statement of Changes
in Equity, Earnings per Share or the Balance Sheet.
Change in Accounting Policy
NZ IFRS 15: Revenue from contracts with customers (Effective date: periods beginning on or after
1 January 2018):
The Group has previously indicated that, on initial assessment of NZ IFRS 15 in 2017, that there would not
be a significant impact on the financial statements. This assessment was based on the expected completion
of large customer agreements during FY18, particularly inclusion in the Local Coverage Determination
(LCD) with the Centers for Medicare and Medicaid Services (CMS) and a commercial contract with Kaiser
Permanente. As these agreements have not been concluded during FY18, the Group has reassessed the
impact of NZ IFRS 15 and decided that there is a significant impact on the recognition of revenue relating
to Cxbladder tests undertaken for US customers. The Group has adopted this accounting standard in the
current financial year in advance of its mandatory commencement date due to this significant impact on
Notes to the Financial Statements
For the year ended 31 March 2018
8
PACIFIC EDGE LIMITED PRELIMINARY FINANCIAL STATEMENTS 2018
the Group’s reported financial results. Under the previously applicable accounting standard (NZ IAS 18
Revenue), revenue for Cxbladder sales was accrued on a Gross Recoverable Revenue basis, estimating net
realisable amounts due from patients and third-party payers. The revenue for such tests under NZ IFRS 15 is
now recognised on a cash receipt basis.
For customers not based in the US, there is no material impact from the adoption of NZ IFRS 15.
The standard provides options as to how transition can be undertaken. The Group has applied the full
retrospective transitional approach and has not applied any of the practical expedients. As a result of this
approach, the financial statements for FY17 have been restated for NZ IFRS 15.
An explanation of the impact and the amount of adjustment for each financial statement line item affected
by the application of NZ IFRS 15 for FY18 and FY17 will be included in the full financial statements, to be
released to NZX by 30 June 2018.
2. SEGMENT INFORMATION
ACCOUNTING POLICY
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources
and assessing performance of the operating segments, has been identified as the Chief Executive Officer
who makes strategic decisions.
There are two operating segments at balance date:
1. Commercial: The sales, marketing, laboratory and support operations to run the commercial
businesses worldwide
2. Research: The research and development of diagnostic and prognostic products for human cancer.
The reportable operating segment Research derives its revenue primarily from grant income and the
reportable operating segment Commercial derives its revenue primarily from sales of Cxbladder tests. The
Chief Executive Officer assesses the performance of the operating segments based on net (loss) for the
period.
These segments differ from those reported at 31 March 2017, as the previously reported segments of US
Laboratory and NZ Laboratory have been consolidated into Commercial, to align with internal reporting.
Therefore the FY17 financial information has been restated to reflect these new segments, as well as the
impact of the transition to NZ IFRS 15.
Notes to the Financial Statements
For the year ended 31 March 2018
9
PACIFIC EDGE LIMITED PRELIMINARY FINANCIAL STATEMENTS 2018
Segment income, expenses and profitability are presented on a gross basis excluding inter-segment
eliminations to best represent the performance of each segment operating as independent business units.
The segment information provided to the Chief Executive Officer for the reportable segments described
above, for the year ended 31 March 2018, is shown below.
2018
Commercial
($000)
(Unaudited)
Research
$000
(Unaudited)
Less:
Eliminations
$000
(Unaudited)
Total External
Income
$000
(Unaudited)
Income
Operating Revenue - External 3,400 - -3,400
- Internal154-(154)-
Other Income 127 2,137 (1,022) 1,242
Interest income 2 3,158 (2,929) 231
Foreign Exchange Gain- 129 - 129
Total Income 3,683 5,424 (4,105) 5,002
Expenses
Expenses 18,834 9,413 (4,105) 24,141
Depreciation and Amortisation 191 313 - 504
Total Operating Expenses 19,025 9,726 (4,105) 24,646
Loss Before Tax (15,342) (4,302)- (19,644)
2017
Commercial
$000
RESTATED
(Unaudited)
Research
$000
RESTATED
(Unaudited)
Less:
Eliminations
$000
RESTATED
(Unaudited)
Total External
Income
$000
RESTATED
(Unaudited)
Income
Operating Revenue - External 3,208 -- 3,208
- Internal165-(165)-
Other Income 70 1,983 (948) 1,105
Interest Income- 2,230 (1,981) 249
Foreign Exchange Gain 3 116 - 119
Total Income 3,446 4,329 (3,094) 4,681
Expenses
Expenses 16,088 13,731 (3,094) 26,725
Depreciation and Amortisation 227 315 - 542
Total Operating Expenses 16,315 14,046 (3,094) 27,267
Loss Before Tax (12,869) (9,717)- (22,586)
Eliminations
These are the intercompany transactions between the subsidiaries and the parent. These are eliminated on
consolidation of Group results.
Notes to the Financial Statements
For the year ended 31 March 2018
10
PACIFIC EDGE LIMITED PRELIMINARY FINANCIAL STATEMENTS 2018
Segment Assets and Liabilities Information
2018
Commercial
($000)
(Unaudited)
Research
($000)
(Unaudited)
Total
($000)
(Unaudited)
Total Assets 1,977 17,688 19,665
Total Liabilities 1,917 1,108 3,025
2017
Commercial
($000)
RESTATED
(Unaudited)
Research
($000)
RESTATED
(Unaudited)
Total
($000)
RESTATED
(Unaudited)
Total Assets 2,111 15,597 17,707
Total Liabilities 1,419 1,315 2,734
Additions to non current assets include:
Commercial
($000)
(Unaudited)
Research
($000)
(Unaudited)
Total
($000)
(Unaudited)
Property, Plant & Equipment236117353
Intangible Assets-139139
Total Additions to Non Current Assets236257493
There are three external revenue customers who individually represent greater than 10% of the total trade
receivables balance. As trade receivables totals $38,000 in 2018, this is not deemed to be a material
balance in the financial statements and therefore the Group has determined that there is not a significant
concentration risk in relation to the receivables balance.
Sales between segments are carried out at arm’s length. The revenue from external parties reported to the
Chief Executive Officer is measured in a manner consistent with that in the statement of comprehensive
income.
The amounts provided to the Chief Executive Officer with respect to total assets and total liabilities are
measured in a manner consistent with that of the financial statements. These assets and liabilities are
allocated based on the operation of the segment and the physical location of the asset.
There are no unallocated assets or liabilities.
Notes to the Financial Statements
For the year ended 31 March 2018
11
87 St David Street, PO Box 56, Dunedin, New Zealand
P +64 3 479 5800 F +64 3 479 5801
www.pacificedge.co.nz
---
Pacific Edge Limited
Appendix 1
Results for announcement to the market
Reporting Period 12 months to 31 March 2018
Previous Reporting Period 12 months to 31 March 2017
Amount (000s) Percentage Change
Revenue from ordinary
activities
- Operating Revenue:
NZ$3,400
- Other Income:
NZ$1,242
Revenue from ordinary
activities: NZ$4,642
- Operating Revenue:
6% increase
- Other Income: 12%
increase
Revenue from ordinary
activities: 8% increase
Profit (loss) from ordinary
activities after tax
attributable to security
holder.
NZ$19,644 13% decrease
Net profit (loss) attributable
to security holders.
NZ$19,644 13% decrease
Interim/Final Dividend Amount per security Imputed amount per
security
The Company does not
propose to pay dividends to
shareholders
Not Applicable
Record Date Not Applicable
Dividend Payment Date Not Applicable
Comments The Appendix 1 Release should be read in conjunction with
the unaudited preliminary financial statements for the year
ended 31 March 2018, the results presentation and
commentary, all of which have been released with this NZX
Appendix 1 Release.
The Company has adopted NZ IFRS 15 for the 2018 financial
year and applied the full retrospective approach, restating
the 2017 financial year, which is also unaudited.
The preliminary financial statements are presented as
unaudited. The full audited financial statements for both
financial years will be released by 30 June 2018 and will
include full disclosures on the transition of NZ IFRS 15 and
the transition tables from NZ IAS 18 to NZ IFRS 15.
Net tangible assets per share is 3.5 cents per share at 31
March 2018 (31 March 2017: 3.7 cents per share).
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.