Annual Report, Shareholder Letter & Section 209c Notice

18
ANNUAL
REPORT
FOR THE
YEAR ENDED
31 MARCH 2018

KEY DATES
End of Financial Year 31 March
Full Year Results By 30 May
Annual Report By 30 June
2018 Annual Meeting 16 August 2018
End of Half Year 30 September
Interim Results By 30 November
Interim Report By 31 December
Our goals are to enable better patient care,
better clinical decision making and better use
of healthcare resources by providing faster,
more accurate and less invasive diagnosis and
management of bladder cancer.
The Board of Directors of Pacific Edge Limited is pleased to present the Annual Report
for the year ended 31 March 2018. This provides a review of performance in the last
year and our focus for the year ahead.
The Annual Report can also be viewed on our website www.pacificedgedx.com
Chris Gallaher David Darling
Chairman Chief Executive Officer

CONTENTS
Our Business 4
Our Year at a Glance 6
Financial Snapshot 8
Chair’s Report 9
CEO’s Review 11
New Revenue Reporting Model 16
FY18 Financial Review 18
Board of Directors 20
Executive Team 22
Scientific Advisory Board 24
Clinical Advisory Board 25
Financial Statements 26
Notes to the Financial Statements 31
Independent Auditors’ Report 74
Corporate Governance 78
Remuneration 85
Risk Analysis 89
Statutory Information 90
Glossary 95
PACIFIC EDGE LIMITED ANNUAL REPORT 2018
32

Pacific Edge is the world-leading
provider of molecular diagnostic
tests for the diagnosis and
management of urothelial cancer,
with a suite of tests providing
increased resolution across the
clinical pathway.
We have developed and are now commercialising
our suite of non-invasive, highly accurate, urine-
based diagnostic tests for urothelial and bladder
cancer. While bladder cancer is by far the most
common, our tests also detect other urothelial
cancers in the upper urinary tract and renal pelvis
areas which are notoriously difficult to identify.
We are seeking to change clinical practice for
patients presenting with haematuria (blood in
the urine) and those diagnosed with all urothelial
cancers.
Haematuria is a key indicator of bladder cancer –
the ninth most common cancer in the world and
the fifth most common in the United States.
Every year, millions of people around the world
are tested for bladder cancer and those who are
detected positive must be regularly monitored for
recurrence of the disease.
Historically, diagnosis and monitoring of bladder
cancer has involved an arduous regime of invasive
and expensive tests over the lifetime of the
disease.
Now, Pacific Edge’s suite of Cxbladder tests
is providing a better clinical solution for both
physicians and patients alike – they are non-
invasive, faster and more accurate and can be used
throughout the clinical pathway for bladder cancer.
OUR OPPORTUNITY IS REAL AND SIGNIFICANT
The USA is the world’s largest healthcare market
and it remains Pacific Edge’s primary focus, with an
estimated market opportunity of up to
US$1.2 billion
1
.
The company also has commercial partnerships in
New Zealand, Australia and Singapore.
Together, these markets offer Pacific Edge an
estimated 5 million-plus test opportunities every
year.
OUR PRODUCTS ARE IN-MARKET AND BEING
ADOPTED STRONGLY
Pacific Edge is the only company in the world
to offer a suite of molecular diagnostic tests in
a single cancer, and Cxbladder is the first new
diagnostic test for bladder cancer in 16 years to be
made commercially available in the US market.
The Cxbladder suite of tests encompasses many of
the physician’s decision points across the urothelial
cancer pathway, from investigation of haematuria
through to detection of cancer and management
of patients for recurrence of the disease.
The multiple integrated products, ease of use,
ability to transport across international borders
and a fast laboratory turn-around, as well as the
increase in clinical resolution, provide a unique
‘one-stop-shop’ that physicians and healthcare
providers are looking for.
1
EY-Parthenon Strategic Review of Bladder Cancer US Market for Pacific Edge
OUR BUSINESS IS GROWING
Four x Cxbladder tests covering the
clinical pathway for urothelial and
bladder cancer
Enables faster, more accurate
and less invasive detection and
management of the disease
Developed over 16 years of R&D
and validated by world-leading
physicians
Approx 7 million people presenting
with haematuria every year (blood
in the urine and a key indicator of
bladder cancer)
79,000+ new bladder cancer cases
diagnosed in the USA every year –
the 9th most common cancer in the
world and the 4th most common
cancer in men
70% recurrence rate and highest
medical cost of any cancer up to
US$240K per patient
Primary focus is the USA, the world’s
largest healthcare market
Estimated opportunity: 5 million
tests per year worth up to US$1.2
billion
Commericial partnerships in USA,
NZ, Australia and Singapore
14,448 tests processed through
Pacific Edge’s two certified labs in
NZ and USA in FY18
Laboratory throughput includes
User Programmes and commercial
sales and is a key indicator of
adoption and growth
PACIFIC EDGE LIMITED ANNUAL REPORT 2018PACIFIC EDGE LIMITED ANNUAL REPORT 2018
54

OUR YEAR AT A GLANCE
APR
OCT
MAY
NOV
JUN
DEC
JUL
JAN
AUG
FEB
SEP
MAR
Named in TIN100
Top Ten Hot Emerging
Companies
Received approval
for CPT Codes
from American
Medical Association
Completion of
successful $21.3m
capital raising
Signed first commercial
agreement in Singapore,
with Raffles Group
Named 20th in
Deloitte Fast50
Signed contract with
MediNcrease Health
Plans in USA
Suite of Cxbladder tests
adopted by MidCentral DHB
ACHIEVEMENTS AND SIGNIFICANT EVENTS
Continuing lift in test volumes and increasing percentage of billable tests
Laboratory throughput increased by 28% to 14,448 tests, including User Programmes and commercial sales,
of which 82% of tests were billable. These are key indicators of business growth.
Increasing adoption of Cxbladder
Growing sales and revenue as more urologists and healthcare institutions adopt Cxbladder into use.
MidCentral DHB signs up to use all four Cxbladder products.
Achieved reimbursement milestone in the USA
Issue of CPT codes for Cxbladder products by the American Medical Association.
Good progress with transformational customers
Progressed commercial negotiations with targeted large scale healthcare organisations including Kaiser
Permanente and the Centers for Medicare and Medicaid Services. Global first as Cxbladder enters
guidelines with Canterbury District Health Board (DHB) in New Zealand.
Expanded market presence
Continued focus on building the customer base, specifically in the USA, the world’s largest healthcare
market. Commenced commercial operations in South East Asia.
Increased availability to full suite of products
Rollout of Cxbladder Monitor in the USA and launch of Cxbladder Resolve in New Zealand and Australia.
Growing clinical recognition and validation of Cxbladder
Multiple papers reflecting the high performance, clinical utility and cost benefits of Cxbladder.
Investment into building the business
Completed $21.3 million rights issue in November 2017.
Strong growth in commercial sales in New Zealand
Majority of District Health Boards (DHBs) now using Cxbladder, with New Zealand representing 14%
of Pacific Edge’s total laboratory throughput.
MILESTONES ACHIEVED IN FY18
PACIFIC EDGE LIMITED ANNUAL REPORT 2018PACIFIC EDGE LIMITED ANNUAL REPORT 2018
76

FINANCIAL SNAPSHOT
Adoption of new revenue reporting model for the
FY18 financial year onwards, with revenue now
recognised for US customers only when the cash
payment is received.
Total revenue $5.0M including test sales
of $3.4M, up 6%
Operating expenses reduced by 10%
to $24.6M
Revenue outgrowing expenses by
a net 13% (FY18 on FY17)
Operating cashflow of $(18.1)M, in line
with expectations and the previous year
Net Loss of $(19.7)M for the year, in line
with management expectations and a
13% improvement on FY17
Cash and cash equivalents $16.2M
as at 31 March 2018
Results in line with October 2017 forecasts
FY17 : FY18 REVENUE INCREASE
LABORATORY THROUGHPUT
Includes User Programmes and commercial
tests
28% increase (FY17: FY18)
Total Lab Throughput: 14,448 tests
Approx. 82% of tests were billable in FY18
(74% in FY17)
FY17FY18
0
2000
4000
6000
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FY14FY15FY16FY17FY18
0
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FY17FY18
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6000
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10000
12000
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FY14FY15FY16FY17FY18
0
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4000
6000
8000
10000
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■ Accrued revenue under old standard
1
■ Revenue recognised under new standard
■ 1H ■ 2H
NZ IFRS 15 revenue accounting standard adopted for FY18, with US
revenue now recognised only on a cash basis. Prior year results have
been restated in line with the new standard.
1
‘Like-for-like’ basis assumes the same accounting standards,
calculations and assumptions as was used to define the October 2017
forecast
CHAIR’S REPORT
The year under review has been one
of achievement and challenge.
The Company has maintained its consistency
of purpose and we have not deviated from our
strategy and goals which are now well established.
The journey of establishing Cxbladder in the USA
market, the world’s largest healthcare market,
continues to be the primary focus of the Company.
We had hoped and planned to be able to bring
the last two of the four transformational USA
opportunities that we have been working on to
finality this year, being Kaiser Permanente and the
Centers for Medicare & Medicaid Services (CMS).
While we are disappointed that progress is not as
fast as we would have liked, we continue to make
progress and our team is doing all within its control
to conclude these opportunities.
During the year we commissioned EY Parthenon,
a leading international consulting firm, to review
our USA ‘go to market’ strategy. Pleasingly, this
review endorsed our strategy and confirmed the
addressable market for Cxbladder in the USA to
be more than US$1.2 billion.
PACIFIC EDGE LIMITED ANNUAL REPORT 2018PACIFIC EDGE LIMITED ANNUAL REPORT 2018
98

While the pace of our progress has been
challenging for all stakeholders and may well be
less than some expectations, in the context of
bringing a new medical device to the international
market – a device that seeks to disrupt decades
of established medical practice – what a small
company founded and headquartered in Dunedin
has been able to achieve so far does give cause for
quiet celebration.
When you distil everything down to its
fundamentals, the Company owns world-leading
molecular diagnostic tests for the detection and
management of bladder cancer. The effectiveness
and utility of our suite of products continues to
be validated in user studies and peer reviewed
publications and the tests continue to be adopted
by physicians at an increasing rate globally.
TO REFLECT ON WHAT HAS BEEN ACHIEVED
OVER THE LAST YEAR:
• Adoption of Cxbladder has continued to
grow and billable tests were 82% of total
laboratory throughput.
• Another milestone was achieved to enable
reimbursement in the USA, with the
granting of CPT codes by the American
Medical Association.
• Awareness of our products continues to
build, our customer base is growing and we
signed a number of significant commercial
agreements with large institutional
customers during the year.
• While not distracting from our focus on the
USA market, our first commercial agreement
has been signed in Asia with the Raffles
Group in Singapore.
• We were encouraged by the support of
shareholders for our capital raising in
November.
We made the decision to early adopt the new
accounting standard for revenue recognition, NZ
IFRIS 15 for the 2018 financial year. This cash basis
of recognition provides more relevant information
on Pacific Edge’s revenues, particularly from the
USA, where the reimbursement system is complex
and time to recovery of cash can be slow.
TO THE YEAR AHEAD:
• In the USA market, we remain very focussed
on concluding a commercial agreement
with Kaiser Permanente, achieving our
CMS Local Coverage Determination, and
building volumes of tests with the Veterans
Administration (VA) and TriCare.
• We will continue to complete our New
Zealand roll out, and build on our market
start in Singapore.
• We have identified our key performance
measurement metrics as billable tests and
cash generation, and will report on these on
a regular basis.
• The Board and management have cash and
cashflow management very front-of-mind
and we remain focussed on our goal of
achieving a cash flow break-even position in
the 2019 financial year.
Our Company is uniquely positioned to capitalise
on the demand for better, more accurate, less
invasive and more cost-effective diagnostics.
The Board believes that we have the right strategy,
the right people to execute that strategy and we
are years ahead of the competition.
I would like to thank my fellow Directors for
their efforts and wise counsel over the year, our
shareholders for your patience and support,
our customers for their support and willingness
to try something new and, last but not least,
our management and staff who remain resilient
and focussed on delivering on the potential
of our technology for the benefit of all of our
stakeholders.
I look forward to providing a further update to
you at our annual meeting, which will be held in
Dunedin on 16 August 2018.
Chris Gallaher
Chairman
Pacific Edge
CEO’S REVIEW
Our goal remains to be the global
provider of a one stop shop of
diagnostic tests for the detection
and better management of
haematuria and bladder cancer, and
the preferred choice for physicians.
This is a big goal, it has been with us
from the start and we are well on the
way to its delivery.

Creating and launching a new commercial
diagnostic is no easy task and is usually undertaken
by multinational companies with deep pockets,
looking to take advantage of large commercial
opportunities. It often involves years of research
and development, clinical validation through
multiple studies, extensive processes and
compliance for reimbursement, establishing
commercial operations and then marketing to
physicians and patients and encouraging adoption.
Pacific Edge remains the only company in the
world to have commercially launched a new
diagnostic test for urothelial and bladder cancer in
the last 16 years, and to have a suite of four tests
across the clinical pathway is a real achievement.
To gain adoption of our tests, we need to change
long standing clinical practices, and the burden
of proof is extensive. Proof of clinical validity
and clinical utility helps us grow adoption and it
has been pleasing to see a number of published
papers, some based on recent third party
performance analysis of Cxbladder in use on the
front-line, and all publications confirming that our
tests perform in line with or above expectations.
In FY18, our focus was on growing our customer
base and increasing sales to existing customers.
To achieve that, we have continued to put in place
all of the necessary building blocks including
clinical science, validation, clinical utility and
reimbursement agreements and relationships. The
peer reviewed papers which have been published
in the past year, represent the audited currency of
the medical decision making world, particularly in
the US which remains our primary opportunity.
While we were pleased to achieve many of our
commercial goals during the year, all of which
are helping to grow our sales and improve
reimbursement, we had also hoped to finalise
commercial agreements with Kaiser Permanente
and attain inclusion in the Local Coverage
Determination (which will allow for reimbursement
of CMS patients). However, these are both
taking longer than we all anticipated. While we
are achieving all we can in the areas that we
can control, we are in the hands of very large
bureaucracies to bring these two target customer
opportunities to a conclusion.
Despite this, the Company continues to grow, with
an increase in both the number of commercial tests
through our laboratories and in revenue in FY18,
and a reduction in our expenditure, year-on-year.
Essential to us achieving our goals, are our highly
capable and expert people, who are passionate
about our vision, and I would like to thank them for
their continued support and contributions to our
Company.
OUR COMMERCIAL PROGRESS IS IN LINE WITH
OTHER SIMILAR DIAGNOSTICS
We are often asked about our expectations for
our sales progress and how we compare to that
of other molecular diagnostic companies in the
US market. In the formative years there were not
many to compare ourselves to, however a recent
evaluation shows that we have a very similar sales
trajectory to that of the other molecular diagnostic
companies from their time of launch.
Coverage and reimbursement decisions are key
to driving volume. We expect to see an increase
in the uptake of Cxbladder as we continue to
sign commercial contracts and if and when we are
included in the Local Coverage Determination for
the CMS.
PACIFIC EDGE LIMITED ANNUAL REPORT 2018PACIFIC EDGE LIMITED ANNUAL REPORT 2018
1110

INCREASING UPTAKE BY UROLOGISTS
We have been marketing our tests to urologists for
the past three years and we are now seeing more
urologists in both private and public healthcare
organisations adopting our tests and transitioning
from User Programmes to commercial customers.
This was reflected in the 28% increase in laboratory
throughput in FY18, a key measure of the adoption
of our tests and the growth of our business. Of
the total tests carried out in FY18, 82% were
billable, up on the previous year, although, due
to the complex reimbursement system in the US,
payment for these may not be received until some
months after the test was provided.
User Programmes continue to remain an essential
part of our adoption strategy and a growing
number of clinicians across the USA, New Zealand,
Australia and Singapore are engaged in User
Programmes as part of their adoption cycle for
Cxbladder. These enable the physicians to gain a
first-hand experience of Cxbladder in their specific
clinical settings and select the tests most suitable
to their needs, to complete their transition to a
commercial customer.
SALES FOCUS MOVING TO LARGE
INSTITUTIONAL HEALTHCARE ORGANISATIONS
Across all our markets, we are increasing our
sales focus on large institutional healthcare
organisations. We have seen the impact that
our technology makes on these large healthcare
providers who have burgeoning patient needs,
limited resources and need to demonstrate value
for their clinical services.
An example are the New Zealand DHBs. These
large public healthcare providers are looking for
more timely, high performing and cost effective
detection and management options for their
growing number of patients and our tests fit these
criteria perfectly. We have seen strong uptake by a
number of DHBs, particularly in the last 18 months,
as they realise the clinical and economic benefits
of our tests.
While it may take longer to gain commercial
agreements with these large institutions, once
in place, they provide us with access to a large
population of patients with guaranteed payment
terms and little ongoing input needed from our
sales team.
In line with this, we have refocussed our US
sales team and added more resource for
such institutions, while continuing to maintain
relationships with existing large practice urologists.
50,000
Cxbladder is tracking
in line with other US
Mol Dx companies
NUMBER OF TESTS SOLD (US)
YEARS AFTER LAUNCH (US)
Test Volume of Molecular Diagnostic Companies Post Launch
*Cxbladder Pacific Edge Year 3 estimate from October 2017 Forecast
40,000
Cxbladder
Genomic Health
Select MDx
ConfirmMDx
FoundationOne
Heme
Foundation ACT
30,000
20,000
10,000
0
0123456
Genomic Health
PROGRESS WITH TRANSFORMATIONAL
CUSTOMERS
In the USA, we are targeting a number of
large scale organisations, which have the
potential to be transformational for our
Company:
Centers for Medicare and Medicaid Services
(CMS):
Sales to the USA are the lion’s share of our
revenue and, of these, approximately 50% are
currently sales directly to patients covered
by the CMS. Whilst we are obligated to carry
out these tests and invoice the CMS, until
we gain inclusion in the Local Coverage
Determination (LCD) we are not able to be
reimbursed. Good progress is being made to
gain LCD inclusion, which will also allow us to
seek payment for many CMS patients done
to date. This is an iterative, unstructured and
lengthy process that can take companies
three to five years to complete and which
everyone must follow.
Veterans Administration (VA) and TriCare:
We are now in contract with the VA and
TriCare, which gives us access to a combined
20 million plus military personnel in the US
and their families. We have a Federal Supply
Schedule agreement in place which means
we can sell our tests to VA physicians, at an
agreed ceiling price; however, each individual
VA centre can still negotiate their own
pricing.
While gaining adoption in each centre is
taking longer than we anticipated, we are
now starting to see early sales from the initial
centres we targeted. We are putting in place
User Programmes for several of the larger
sites and their success is expected to carry
adoption across a large number of the VA
sites.
Kaiser Permanente (Kaiser):
Kaiser is one of the largest integrated
healthcare organisations in the USA, with its
own network of clinics, hospitals and patient
centres. It serves more than 11.8 million
members and offers a significant opportunity
for our Company.
To have a new healthcare product or service
adopted into Kaiser requires a huge amount
of clinical validation and sign off from a large
team of clinical, budgeting and management
personnel. We have little control over the
internal decision making process and, while
this is taking longer than we anticipated,
we could reasonably expect commercial
negotiations with Kaiser to conclude shortly.

OTHER COMMERCIAL MILESTONES
IN THE USA
Earlier this year, we were granted CPT Codes by
the American Medical Association. This is a big
milestone as CPT codes are only issued for tests
that have entered the mainstream and where the
volume of tests used by physicians has been shown
to be indicative of a significant adoption. Their
panel of experts looked at the clinical evidence,
the volume of tests used annually and on the basis
of their review, CPT Codes were issued for two of
our Cxbladder products (Cxbladder Detect and
Cxbladder Monitor).
The associated pricing for these codes is expected
to have negotiations finalised and published in July
2018. The CPT code prices will carry across to the
test sales for patients that are covered by the CMS
and if and when Pacific Edge gains LCD inclusion,
all the necessary product codes and pricing to
enable timely reimbursement in the USA will be in
place.
We also signed an agreement with MediNcrease,
a National Provider Network (NPN), adding to the
large cornerstone NPNs previously announced.
These NPNs are a bit like insurance companies and
having an agreement in place secures a contract
price and smooths the path for reimbursement
from all providers and payers in the network and
facilitates timely payment terms.
OTHER MARKETS
New Zealand is a great example of what our tests
can achieve in terms of better patient care, better
outcomes and better use of limited healthcare
resources. New Zealand’s public healthcare
providers set world first benchmarks with the
inclusion of Cxbladder into guidelines.
Figure 1.0
1
50,000
Cxbladder is tracking
in line with other US
Mol Dx companies
NUMBER OF TESTS SOLD (US)
YEARS AFTER LAUNCH (US)
Test Volume of Molecular Diagnostic Companies Post Launch
*Cxbladder Pacific Edge Year 3 estimate from October 2017 Forecast
40,000
Cxbladder
Genomic Health
Select MDx
ConfirmMDx
FoundationOne
Heme
Foundation ACT
30,000
20,000
10,000
0
0123456
Genomic Health
1
EY-Parthenon US business strategy review PEB document 2018
PACIFIC EDGE LIMITED ANNUAL REPORT 2018PACIFIC EDGE LIMITED ANNUAL REPORT 2018
1312

In FY18, Canterbury DHB, a large public healthcare
provider, added Cxbladder to their guidelines,
replacing the previous gold standard in the initial
work-up of patients with haematuria.
Waitemata DHB has also added Cxbladder to their
standard of care for all patients being managed for
the recurrence of the disease.
In another global first, all four of our products
have been signed up by MidCentral DHB during
FY18. Cxbladder is now in widespread use by
the majority of these large DHBs, test sales are
growing and in FY18, New Zealand accounted for
14% of the group’s total laboratory throughput.
The uptake in Australia has been disappointing
to date and we are working with our distributor to
drive trial and adoption and to increase the focus
on large healthcare institutions to replicate the
success we are having in New Zealand.
Meanwhile, Singapore is turning into another
early success story. We are only in the very early
stages of entry into this market, but already have
multiple User Programmes underway with the
large hospitals and have signed a commercial
agreement with Raffles Medical Group, which is
represented in four countries and 13 cities across
South East Asia.
While this is a relatively small commercial
proposition for Pacific Edge right now, it provides
us with a significant stepping stone into the Raffles
Medical Group across South East Asia. The region
remains an exciting proposition with approximately
9,500 urologists and an estimated 1.8 million
potential Cxbladder tests per year.
OUTLOOK
The commercial opportunity for our Company
is steadily becoming a reality and the market
opportunity remains significant . There is growing
awareness, support and adoption of our tests and
this is being reflected in increasing sales, and in
the adoption of Cxbladder into standards of care
and inclusion in local guidelines.
We expect to see this translate into continuing
sales growth over the next year from new and
existing customers.
To drive our performance, we have identified a
number of catalysts for FY19 which we believe will
accelerate the uptake and adoption of our product
and our commercial success.
• The USA remains our primary focus for
growth and will be our main area of
investment again in FY19 as we position
Cxbladder as the preferred tests of choice
for physicians and grow the number of
customers and total sales.
• We are moving our focus to large
institutional healthcare organisations, which
may take longer to bring on board but
provide us with access to a large population
of patients with guaranteed payment terms
and little ongoing input needed from our
sales team.
• We are continuing to seek the regulatory
and commercial agreements required to
operate effectively in the USA and ensure
timely reimbursement, particularly from the
Centers for Medicare & Medicaid Services
and other large insurance providers such as
Kaiser Permanente.
• We will continue to build on and leverage
the clinical utility and validation of our
products, which demonstrate their
outperformance compared to other
commonly used diagnostic alternatives.
We remain focussed on achieving our goals and
delivering value to our stakeholders.
David Darling
Chief Executive Officer
The use of Cxbladder Monitor can reduce
or remove the need for cystoscopy, a
painful, invasive and expensive procedure
that requires a tube with a scope to be
inserted into the urethra.
In the USA alone, up to 1.5 million
cystoscopies are performed each year on
bladder cancer patients.
In a recent survey
1
of over 1,000 bladder
cancer patients and caregivers in the USA,
71% of patients who felt discomfort, pain,
embarrassment or anxiety when having a
cystoscopy would choose Cxbladder as
part of their bladder cancer management
plan. Sixty-eight percent would use
Cxbladder to reduce the frequency of
cystoscopies as part of their ongoing
surveillance.
“Cystoscopy was very painful. I hope to
never go through that again.”
“I wish there was a better, less invasive
way to determine if tumours and cancers
have returned.”
“Cystoscopy is an experience I would love
to discontinue. I hope that some form of
technology soon takes its place. There is
nothing pleasant about the procedure.”
PATIENTS SEEKING BETTER OPTIONS
1
EY-Parthenon business review of the US market opportunity cites Pacific Edge’s
total addressable market in the US to be annually US$1.2 billion
1
Pacific Edge/Bladder Cancer Advocacy Network (BCAN)
Patient Survey 2018 (unpublished)
PACIFIC EDGE LIMITED ANNUAL REPORT 2018PACIFIC EDGE LIMITED ANNUAL REPORT 2018
1514

US reimbursement process
and accounting for B2C
customers
The US reimbursement system is complex, and commercial agreements
with US insurance payers are required to enable reimbursement on a
timely basis.
At this stage of Pacific Edge’s commercial journey, the majority of
revenue is being generated from sales to individual patients in the US
(B2C customers).
Under this Business to Consumer relationship, the patients retain the
liability of paying for the tests, however their insurer may pay some or all
of the cost of the test, depending on their level of cover. The patient is
then responsible for paying any outstanding amount. As a result, receipt
of cash can take anywhere from 1 to 24 months, with the bulk of cash
receipts coming over 7 to 12 months from the time of sale.
While it is not necessary to be in-contract to be paid, agreements with
private insurers, large healthcare institutions and inclusion in the CMS’
Local Coverage Determination (LCD) will improve payment timing and
terms.
The CMS is seen by private insurers as a leader in the market and,
tactically, negotiations with private insurers are nearly always done
following inclusion under the CMS coverage.
Finalising a price under the CPT codes also concludes one of the two
big steps in the US reimbursement process and will enable Pacific Edge
to begin negotiating contracts with private insurers.
NZ IFRS 15: New revenue
reporting model
Pacific Edge has adopted NZ IFRS 15 for the FY18 financial year onwards.
This standard is mandatory for all companies from FY19.
Under the Company’s new reporting model, revenue is now recognised
for US customers only when the cash payment is received. Given the
variability in the payment terms for B2C customers in the US, this is seen
as providing a more transparent view of Pacific Edge’s cash revenues,
particularly from the US.
Previously, revenue included accrued revenue for tests that had been
completed but not yet paid for. These will now be recognised as revenue
only when payment is received.
This accounting treatment is likely to continue until such time as Pacific
Edge is included in the 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.
Accrual revenue is still in place for the sales in New Zealand, Australia
and Singapore, where we have more certainty over payment terms.
Key Performance IndicatorsWith the change to the new accounting standards, the performance
metrics for the Company will now be centred around cash revenue, total
laboratory throughput and the percentage of billable tests.
NEW REVENUE REPORTING MODELUSA: B2C CONTRACTED RELATIONSHIP
8
Patient instructs physician
to provide medical evaluation
Physician signs Test Requisition
Form (TRF) on behalf of patient
Patient is aware
of haematuria
2
1
3
4
6
Patient provides sample to physician
Physician requests test on behalf
of patient

TRF sent with sample
Sample is run in laboratory
Results put into Test Report
Test Report sent to patient’s
physician
Patient details accessed by
Billing & Reimbursement agent on
behalf of Pacific Edge
Billing & Reimbursement agent
invoices patient’s insurance provider
Separate invoice
sent to patient for payment of any
residual liability
Insurance pays some or all of the
patient’s liability
BILLING & REIMBURSEMENT
USA: B2C CONTRACTED RELATIONSHIP
CONTRACT PROCESS FLOW PATIENT CONTRACT PROCESS
5
7
CLINIC
LABORATORY
PACIFIC EDGE LTD
TEST REPORT
SAMPLE
Pacific Edge revenue recognised
when payment/s received (7&8)
S
S
+
PACIFIC EDGE LIMITED ANNUAL REPORT 2018PACIFIC EDGE LIMITED ANNUAL REPORT 2018
1716

PERFORMANCE AGAINST FORECAST (ON A ‘LIKE-FOR-LIKE’ ACCOUNTING BASIS
1
)
FY18
Forecast
FY18
(on ‘like-for-
like’basis)
Forecast
Achieved
(%)
FY17
(Previously
Reported)
Total Revenue (NZ$M)12.612.095%9.5
Net Operating Cashflow (NZ$M)(18.0)(18.1)101%(17.8)
Total Laboratory Throughput (‘000)15.814.491%11.2
Billable Tests (‘000)12.411.996%8.4
On a like-for-like accounting basis, laboratory throughput was 91%, billable tests were 96% and revenue was
95% of forecast. This is 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 anticipated in the forecast to make contributions to the FY18 results.
REPORTED FY18 RESULTS (UNDER THE NEW ACCOUNTING BASIS)
(NZ$M)FY18 FY17
(Restated)
FY17: FY18
(% change)
FY17
(Previously
Reported)
Operating Revenue3.43.2 6%8.1
Other Revenue 1.61.57%1.4
Total Revenue5.04.76%9.5
Total Operating Expenses(24.6)(27.3)(10%)(30.5)
Total Comprehensive Loss(19.7)(22.6)(13%)(21.0)
Net Cash Outflow to Operating Activities(18.1)(17.8)2%(17.8)
Cash On Hand as at 31 March16.214.611%14.6
OPERATING REVENUE – $3.4 MILLION
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.
Reported revenue lags behind tests sold, due to the longer time for cash collectables under the US
reimbursement process.
As usual, a stronger second half of the year was reported. This is usually when patients’ medical costs have
exceeded their fixed deductible level, triggering the spend on medically recommended actions that are
reimbursed by their insurance company. In FY18, the second half result also reflected the increasing sales in
the USA from the recently released Cxbladder Monitor.
FINANCIAL REVIEW
LABORATORY THROUGHPUT – 14,448 TESTS
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 28% to 14,448 tests in FY18, of which 82% were billable tests (FY17: 74%).
TOTAL OPERATING EXPENSES – $24.6 MILLION
(NZ$M)FY18 FY17
(Restated)
FY17: FY18
(% change)
FY17
(Previously
Reported)
Laboratory Operations4.63.918%1.0
Research4.46.1(28%)4.9
Sales and Marketing9.49.04%1.9
General & Administration6.28.3(25%)22.7
Total Operating Expenses24.627.3(10%)30.5

Total operating expenses reflect the increasing laboratory throughput and investment into sales and
marketing, particularly in the US. Overall, costs were 10% lower than the prior year, and revenue continues
to outgrow expenses, by a net 13% FY17 to FY18.
The employee equity incentive scheme was wound up in FY17 and ordinary shares issued to the staff. This
was a one-off non-cash element and there are no costs associated with this in FY18. FY17 has been restated
to remove Bad and Doubtful Debts related to US accrued revenue which is no longer recognised under NZ
IFRS 15.
NET OPERATING CASHFLOW – $(18.1) MILLION
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. The time taken to collect cash
receipts will improve as commercial agreements with insurers, large institutions and the CMS are achieved.
Net operating cashflows were at a similar level to last year and in line with expectations.
FINANCIAL POSITION
At 31 March 2018, cash in hand was $16.2 million and the Company remains debt free. A successful $21.3
million capital raising was completed in November 2017 and the Company is working hard to build sales
and achieve a cashflow breakeven position.
NET LOSS AFTER TAX – $19.7 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.
1
‘Like-for-like’ basis assumes the same accounting standards, calculations and assumptions as was
used to define the October 2017 forecast
1
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
PACIFIC EDGE LIMITED ANNUAL REPORT 2018PACIFIC EDGE LIMITED ANNUAL REPORT 2018
1918

BOARD OF DIRECTORS
1. Chris Gallaher, Chairman and Independent Director (Appointed 2016)
Chris joined the Board in 2016 and was appointed as Chairman in August 2016. A New Zealander based
in Melbourne, before his retirement from full time corporate life last year, Chris held senior executive
positions in both general and financial management with a number of large international companies;
his last role being Group Chief Financial Officer of Fulton Hogan, a large New Zealand, resources based
civil contractor. He also serves on the Boards of The Good Shepherd New Zealand and Australia, Good
Shepherd Microfinance, Mariposa Ltd and the investment committee of property development company,
Substancia Pty Ltd. Chris is a Chartered Accountant and holds a BCom from Otago University and is a
member of the Australian Institute of Company Directors.
2. David Band, Independent Director (Appointed 2007)
David is an experienced international businessman and joined the Board in 2007 upon returning to New
Zealand from Europe. David’s career encompasses significant experience in corporate consulting and
management. This included extensive periods with Korn/Ferry International, PA Consulting Group and
Sibson Consulting. At PA Consulting Group he was Head of the Management Development Practice. He is
Chairman of AbacusBio Ltd and Director of Kauri Australia Pty Ltd.
3. David Darling, Executive Director and CEO (Appointed 2014)
Dave has over 30 years’ business experience in life sciences and biotechnology and was appointed to
the Board as Executive Director in 2014. In his capacity as Chief Executive Officer he has led Pacific Edge
from its early inception, and has significant executive and leadership experience in the development and
international commercialisation of biomedical and biotechnology businesses and products. During his
career, Dave has held a number of positions in governance, executive and senior management, joining
Pacific Edge from Fletcher Challenge.
Pacific Edge is led by an experienced and knowledgeable Board of Directors who offer a range of
complementary skills and expertise.
23
4. David Levison, Independent Director (Appointed 2016)
David has spent 25 years in the healthcare industry, from pharmaceuticals to services to diagnostics. David
is the founder and Director of CardioDx, a leading firm in delivering genomic diagnostics to cardiology
and primary care physicians. Prior to launching CardioDx, David was a Venture Partner at TPG Ventures
and was the CEO of CareDx (formerly XDx). Previously, he was the founder, President and CEO of iScribe
(which was sold to AdvancePCS-now Caremark in December, 2001). Prior to iScribe, David was President of
Oncology Therapeutics Network (sold to Bristol-Myers Squibb in 1996). David also served as CFO of OTN’s
parent company, Axion, from 1990 to 1993. Prior to Axion, he was with Cole Gilburne Fund, an early stage,
technology focussed venture capital firm. David received his MBA from Stanford University and BS from
Williams College.
5. Anatole Masfen, Non-Independent Director (Appointed 2008)
Anatole is the co-founder of Artemis Capital, a private equity investment firm based in Auckland. Anatole
brings to the Board significant experience as an investment manager. Anatole graduated from Auckland
University with a MCom (Hons) in Finance and Economics. He then spent seven years at Air New Zealand
and Ansett Australia in various roles in Pricing and Revenue Management where he was responsible for
systems and process implementation, which continue to drive profitability of the airline.
6. Bryan Williams, Independent Director (Appointed 2013)
Bryan Williams is an internationally recognised cancer researcher and research administrator, with
significant business experience. He was Chair of the Board of Directors of MEI Pharma, a US-based
NASDAQ-listed company, for seven years and was a Director of Cancer Trials Australia. He is presently
Chair of the Board of BioGrid Australia Ltd, and serves on the Boards of XYnapse Therapeutics Pty Ltd
and Cartherics Pty Ltd. He has served as a Director of Pacific Edge Ltd for the past five years. Bryan
was Director of the Monash Institute of Medical Research from 2006 until 2013, and Director and CEO
of the Hudson Institute of Medical Research from 2013 to 2017. He is currently Emeritus Director and
Distinguished Scientist at the Hudson Institute in Melbourne. He previously held leadership positions in
Cleveland and Toronto.
4561
PACIFIC EDGE LIMITED ANNUAL REPORT 2018PACIFIC EDGE LIMITED ANNUAL REPORT 2018
2120

EXECUTIVE TEAM
Jack Atchason, Senior Vice President of Sales & Customer Service, Pacific Edge Diagnostics USA Limited
Jack brings over 25 years of successful experience in sales, sales leadership, and commercial operations,
with large and small pharmaceutical organisations in the US. A proven leader in start-up organizations and
product launches, Jack held roles of increasing responsibility for Abbott Laboratories Amgen, Cytogen,
Idenix, Millenium, and Targanta. Jack has led the growth of US Sales and customer acquisition since 2013.
Parry Guilford, Chief Scientific Officer, Pacific Edge Limited
Parry has led the science, research and development at Pacific Edge from its early days. As one of the
founding scientists and a member of the Scientific Advisory Board of the Company, Parry is the architect of
many of the Company’s product prototypes. Parry’s focus today and going forward is to bring his world class
skills and experience on the step change in biotechnology for the Company’s next generation of products.
Tony Lough, Vice President Clinical Science & Product Performance, Pacific Edge Pty Limited
Tony joined Pacific Edge in October 2016 and brings research management experience to the senior
management team. His most recent role was Chief Executive of a government - University funded project
to provide a national genomics infrastructure to the research sector. Prior to that he was a team leader at
the Auckland-based biotechnology company Genesis Research and Development Corporation, leading
projects in the commercialisation of macromolecular signaling.
Brent Pownall, Vice President Commercial & Franchise, Pacific Edge Limited
Brent brings significant strategic marketing, business development and commercialisation experience,
including sales and marketing of biologics and biomedical products in New Zealand, Australia, Asia
and the United States. Brent joined Pacific Edge in February 2013 to lead the commercial and business
development activities of the Pacific Edge franchise, and its commercial arm Pacific Edge Diagnostics New
Zealand serving the New Zealand, Singapore and Australian markets.
Kate Rankin, Chief Financial Officer, Pacific Edge Limited
Kate joined Pacific Edge in November 2014 and brings international business experience, finance and
leadership skills to the senior management team. Her most recent role was at Spark New Zealand as Senior
Finance Performance Manager and a member of the Telecom New Zealand International Leadership Team.
Prior to that she was Team Leader and Legal Entity Controller at Deutsche Bank in London.
Jimmy Suttie, Senior Vice President Global Operations, Pacific Edge Limited
Jimmy has vast experience, as an executive, with the management of science and technology in New
Zealand’s primary industry sector, particularly the development and application of science and technology
for commercialisation. Jimmy joined Pacific Edge to head up operations for the franchise, product
improvement and support and new product development.
Jackie Walker, Chief Executive Officer, Pacific Edge Diagnostics USA Limited
Jackie brings to the company over 25 years of extensive leadership experience in commercialising medical
technologies in the US and a strong general management background. Prior to joining Pacific Edge
Diagnostics USA, Jackie held senior executive positions at OSspray Ltd, Ondine Biomedical, Dentsply
Sirona, a NASDAQ-100 company, and Ohmeda Medical.
Dora Yip, Director Customer Experience & Digital Marketing, Pacific Edge Limited
Dora has over 15 years of marketing communications experience, gained in Singapore and New Zealand.
She’s worked and consulted in industries ranging from healthcare and education, to FMCG and retail,
science, infrastructure, NGO and government. A writer and columnist with science communication
credentials, Dora heads up Pacific Edge’s brand engagement and customer experience portfolio.
PACIFIC EDGE LIMITED ANNUAL REPORT 2018PACIFIC EDGE LIMITED ANNUAL REPORT 2018
2322

Pacific Edge has a world class Scientific Advisory Board (see table below). The skills, experience and
capability cover a range of disciplines from clinical medicine and pathology through to commercial
biotechnology research and development.
Members of the Scientific Advisory Board advise on science, scientific progress and clinical opportunities.
Visits to New Zealand by the international members also provide a strong linkage to international issues
and opportunities while enabling us to keep abreast of the rapidly changing technology.
NamePositionOrganisationCountry
P. Guilford
Chief Scientific OfficerPacific Edge LimitedNew Zealand
ProfessorUniversity of OtagoNew Zealand
N. Kasabov
DirectorKnowledge Engineering & Discovery
Research Institute (KEDRI)
New Zealand
Professor
Computer Science
Auckland University of TechnologyNew Zealand
M. Sullivan
Professor
Consultant
Paediatric Oncologist
The University of Melbourne Royal
Children’s Hospital
Australia
M. Brennan
Oncologic Surgeon Scientist
Vice President for
International Programs
Professor
Memorial Sloan Kettering Cancer
Center
USA
B. Williams
Emeritus Director and
Distinguished Scientist
Hudson Institute of Medical ResearchAustralia
DirectorPacific Edge LimitedNew Zealand
O. Ogawa
Professor and
Chairman
Department of Urology, Kyoto School
of Medicine
Japan
P. Spence
Managing DirectorPaul Spence ConsultantsUnited Kingdom


SCIENTIFIC ADVISORY BOARD
Pacific Edge has a Clinical Advisory Board to provide expert advice on global clinical needs and
applications for the Cxbladder technology.
NamePositionOrganisationCountry
R. Getzenberg
Chief Scientific OfficerVeru Inc.USA
S. Shariat
Professor and ChairmanMedical University of Vienna, Vienna
General Hospital
Austria
Adjunct ProfessorWeill Cornell Medical Center, New YorkUSA
Adjunct ProfessorUniversity of Texas Southwestern
Medical Center
USA
J. Raman
Professor and Chief of
Urology
Penn State Hershey Surgical Specialties,
Milton S. Hershey Medical Center,
Hershey, Pennsylvania
USA
P. Cozzi
Associate Professor University of Notre DameAustralia
UrologistVMO at St George Public and Private,
Mater Private, Sutherland, Kareena,
Prince of Wales and Hurstville Private
Hospitals
Australia
P. Gilling
Consultant Urologist Tauranga HospitalNew Zealand
Head of Urology
Department
Urology BOP Ltd New Zealand
Professor of SurgeryUniversity of Auckland School of
Medicine
New Zealand
M. Fraundorfer
Consultant UrologistTauranga Hospital
Urology BOP Ltd
New Zealand
J. Masters
UrologistAuckland City Hospital
Manukau Superclinic
New Zealand
CLINICAL ADVISORY BOARD
PACIFIC EDGE LIMITED ANNUAL REPORT 2018PACIFIC EDGE LIMITED ANNUAL REPORT 2018
2524

PACIFIC EDGE LIMITED ANNUAL REPORT 2018PACIFIC EDGE LIMITED ANNUAL REPORT 2018
2726
Notes
2018
($000)
2017
($000)
RESTATED
REVENUE
Operating Revenue5 3,400 3,208
Total Operating Revenue5 3,400 3,208
Other Income5 1,242 1,105
Interest Income6 231 249
Foreign Exchange Gain 129 119
Total Revenue and Other Income5 5,002 4,681
OPERATING EXPENSES
Laboratory Operations 4,619 3,927
Research7 4,384 6,088
Sales and Marketing 9,436 8,970
General & Administration9 6,207 8,282
Total Operating Expenses 24,646 27,267
NET (LOSS) BEFORE TAX (19,644) (22,586)
Income Tax Expense18 - -
(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) attributable 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 Share3(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
18
FINANCIAL
STATEMENTS
FOR THE
YEAR ENDED
31 MARCH 2018

PACIFIC EDGE LIMITED ANNUAL REPORT 2018PACIFIC EDGE LIMITED ANNUAL REPORT 2018
2928
Balance Sheet
As at 31 March 2018
These Financial Statements are to be read in conjunction with the Notes to the Financial Statements
Notes
2018
($000)
2017
($000)
RESTATED
2016
($000)
RESTATED
CURRENT ASSETS
Cash and Cash Equivalents11 5,242 6,564 4,160
Short Term Deposits11 11,000 8,000 20,000
Receivables12 1,064 663 1,456
Inventory13 752 824 707
Other Assets14 472 490 496
Total Current Assets 18,530 16,541 26,819
NON-CURRENT ASSETS
Property, Plant and Equipment15 854 837 990
Intangible Assets16 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 Accruals19 2,926 2,734 2,523
Finance Leases25 73 - -
Total Current Liabilities 2,999 2,734 2,523
NON-CURRENT LIABILITIES
Finance Leases25 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 Capital20 131,824 111,596 100,012
Accumulated Losses (120,119) (100,475) (77,889)
Share Based Payments Reserve 4,055 2,889 2,404
Foreign Currency Translation Reserve 880 963 1,006
TOTAL EQUITY 16,640 14,973 25,533
Net Tangible Assets Per Share0.0350.0370.063
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
Retained
Earnings
Share
Based
Payments
Reserve
Foreign
Currency
Translation
Reserve
Total Equity
($000)($000)($000)($000)($000)
NotesRESTATEDRESTATEDRESTATED
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)
2 - (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)
Transactions with owners in their capacity
as owners:
Issue of Share Capital (net of expenses)20 8,659 - - - 8,659
Issue of Ordinary Shares - Equity Share
Scheme
8/202,925---2,925
Share Based Payment - Employee Share
Options
10 - - 485 - 485
Balance as at 31 March 2017 111,596 (100,475) 2,889 963 14,973
Balance as at 31 March 2017 111,596 (100,475) 2,889 963 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)
Transactions with owners in their capacity
as owners:
Issue of Share Capital (net of expenses)20 20,020 - - - 20,020
Exercising of Employee Share Options10/20112-(18)-94
Share Based Payments - Employee
Remuneration
10/2096---96
Share Based Payment - Employee Share
Options
10 - - 1,184 - 1,184
Balance as at 31 March 2018 131,824 (120,119) 4,055 880 16,640
For and on behalf of the Board of Directors
Chris Gallaher, Chairman Anatole Masfen, Director
Dated the 29th day of June 2018

PACIFIC EDGE LIMITED ANNUAL REPORT 2018PACIFIC EDGE LIMITED ANNUAL REPORT 2018
3130
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
Notes
2018
($000)
2017
($000)
RESTATED
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 Activities22 (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 Issued20 21,318 8,750
Exercising of Share Options96 -
21,414 8,750
Cash was disbursed to:
Repayment of Capital Element of Finance Leases 59 -
Issue Expenses20 1,298 91
1,357 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 Forward11 5,242 6,564
1. SUMMARY OF ACCOUNTING POLICIES
Reporting Entity
The 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).
These consolidated financial statements have been approved for issue by the Board of Directors on 29 June 2018.
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 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 consolidated financial statements also comply with International
Financial Reporting Standards.
The 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.
Mangement of Capital
The capital structure of the Group consists of equity raised by the issue of ordinary shares in the Company.
The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going
concern in order to provide returns for shareholders and benefit for other stakeholders and to maintain an optimal
capital structure to support the development of its business. The Company meets these objectives through
managing its liquidity position with available funds by reducing expenditure or issuing new shares. As part of
meeting these objectives, the Company completed a Rights Issue in November 2017 and a further 66,617,400
shares were issued at $0.32 per share. Refer to Note 20 for further details on the Rights Issue.
Going Concern
While the Company continues to incur operating losses, the Company remains solvent and continues to meet its
debts as they fall due. The cash flows are a critical part of ensuring the business continues to operate in line with
the business strategy adopted by the Directors.
In preparing the financial statements, the Directors have applied the principles of going concern on the basis that
current cash reserves and the Company’s ability to generate cash will be sufficient to meet its debts as they fall due
for a minimum of 12 months from signing the financial statements.
Notes to the Financial Statements
For the year ended 31 March 2018

PACIFIC EDGE LIMITED ANNUAL REPORT 2018PACIFIC EDGE LIMITED ANNUAL REPORT 2018
3332
The Company is progressing commercial negotiations with targeted large scale health organisations, including
Kaiser Permanente and the Centers for Medicare and Medicaid Services (CMS). These contracts are taking longer
than expected to complete, but good progress is being made. These new contracts will have a significant positive
impact on the Company’s financial position when concluded.
In the event that one or both of these contract negotiations are not successful, a decrease in forecast cash flows
may occur, in which case, a material uncertainty may exist which may cast significant doubt on the Company’s
ability to continue as a going concern with the current capital and cost structures.
In this event, the Company may be unable to realise its assets and discharge its liabilities in the normal course of
business.
If a decrease in forecast cash flows was to occur, there are a number of operational options available to the
Directors to manage the cash flow requirements of the Company and ensure the Company continues as a going
concern. The two most likely options are either to reduce the cash outflows or increase the cash position of the
Company.
• Reduce cash outflows to prolong the availability of the Company’s cash balances. This could be achieved
by either eliminating or reducing key areas of expenditure, or deferring certain expenditure. The Company
does not have significant amounts of committed fixed expenditure.
• Seeking additional funding to add further capital into the Company and allow the Company to continue as a
going concern.
Reclassification of Expenditure
Expenses within the Statement of Comprehensive Income have been reclassified from the presentation in the
financial statements for the year ended 31 March 2017. The expenses from both the 2017 and 2018 years in these
financial statements have been prepared on this new basis.
The reclassification has been made to better represent the nature of the costs as the business evolves to allow for
improved comparability.
The following reclassifications have been made for the 2017 year:
• Employee Benefits (which are made up largely of salary and wages, superannuation contributions and
health and disability plans) previously included in Other Expenditure which totalled $7,376,000 have been
re-allocated to the functional areas as follows:
- Laboratory Operations: $1,334,000
- Research: $432,000
- Sales and Marketing: $5,610,000
• Overhead expenditure, previously included in Other Expenses, which totalled $3,782,000 has been
re-allocated to the functional areas as follows:
- Laboratory Operations: $1,597,000
- Research: $748,000
- Sales and Marketing: $1,437,000
• The non-cash expenditure relating to the Employee Equity Equivalent Incentive Scheme of $2,925,000 is
now included in General and Administration Expenditure.
These reclassifications do not change the total expenses recognised for the 2017 year. Total expenses from 2017
have however changed as a result of the implementation of NZ IFRS 15, which is further explained in Note 2.
Statement of Cash Flows Restatement
As the Company reported in September 2017, an error was found in the 31 March 2017 Statement of Cash Flows.
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.
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
Limited
New 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 Ltd
Singapore
Biotechnology Research
& Development
100100
Pacific Edge Analytical Services
Limited
New Zealand
Diagnostic
Biocomputational Services
100100
The 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.
Notes to the Financial Statements
For the year ended 31 March 2018
Notes to the Financial Statements
For the year ended 31 March 2018

PACIFIC EDGE LIMITED ANNUAL REPORT 2018PACIFIC EDGE LIMITED ANNUAL REPORT 2018
3534
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.
Critical Accounting Estimates and Assumptions
In preparing these financial statements, the Group made estimates and assumptions concerning the future.
These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are
continually evaluated and are based on historical experience and other factors including expectations or future
events that are believed to be reasonable under the circumstances.
The main estimates and assumptions used are in relation to revenue from Cxbladder tests in the US and the going
concern assumption which is further assessed in Note 1 above.
2. NEW AND AMENDED STANDARDS ADOPTED BY THE GROUP
NZ IFRS 15: Revenue from contracts with customers (NZ IFRS 15)
The Group has early adopted NZ IFRS 15 Revenue from Contracts with Customers from 1 April 2017 which resulted
in changes in accounting policies and adjustments to the amounts recognised in the financial statements. In
accordance with the transition provisions in NZ IFRS 15, the Group has adopted the new rules retrospectively and
has restated comparatives for the 2017 financial year. None of the available practical expedients have been applied.
Following its initial assessment of NZ IFRS 15 in 2017, the Group previously indicated that there would not be a
significant impact on the financial statements from the adoption of this standard. This assessment was based on
the expected completion of large customer agreements during FY18, in particular inclusion in the Local Coverage
Determination (LCD) with the Centers for Medicare and Medicaid (CMS) and signing 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 the adoption of this standard will have a significant impact on the
recognition of revenue relating to Cxbladder tests undertaken for US customers. There is no material impact for
contracts with customers not based in the US.
Due to this significant impact on the Group’s reported financial results, the Group has decided it is appropriate to
early adopt NZ IFRS 15. An explanation of the change in revenue recognition and the amount of adjustment for
each financial statement line item affected by the application of NZ IFRS 15 is provided below.
Background information on US customers
A physician will order a Cxbladder test if a patient presents to them with symptoms that may indicate the
possibility of bladder cancer. One of the main symptoms is haematuria or blood in their urine. A urine sample is
taken from the patient and sent to the Group’s laboratory in the United States in the Cxbladder Urine Sampling
System. The Group receives and processes the urine sample and returns the results of the test back to the
physician who originally ordered the test. The individual patient is the Group’s customer, however typically in the
US market, the patient’s insurer would pay the Group for the cost of the test.
When a physician orders a Cxbladder test, the Group has an obligation to perform the test and report the results to
the physician irrespective of the patient’s insurance circumstances. A patient may have private insurance cover, be
covered by the US government’s medical program (CMS) or have no insurance cover.
Once the Cxbladder test has been completed, all information required for insurance purposes is sent to the Group’s
billing and reimbursement company to begin the process to collect reimbursement from the applicable insurance
company/ies for the Cxbladder test performed.
For patients with private insurance cover, the relevant test information will be sent to their insurance provider.
When the Group does not have an individual agreement with that insurance provider to pay for Cxbladder tests
(“out of network”), the insurance provider will assess that individual patient’s test for medical necessity and the
level of insurance cover (if any) available to cover the cost of the test. This process of assessment can take many
months to work through before the Group receives payments from the insurance company. The Group does have
agreements with some insurance providers but these currently cover a small population of the Group’s customers.
For patients covered by CMS, invoices are sent to CMS to demonstrate the validity of the Cxbladder test and
support the process for obtaining inclusion in the Local Coverage Determination (LCD). However, CMS will not
normally pay any amounts to the Group, nor permit the patient to be invoiced, until LCD inclusion has been
obtained.
For uninsured patients, the Group has no certainty when or if the patient will pay.
Revenue recognition - patients covered by CMS
Previous accounting under NZ IAS 18
The accounting for tests performed for patients with CMS cover has been closely linked to the process to obtain
inclusion in the CMS LCD. The likelihood of obtaining inclusion in the LCD in the immediate future has formed the
basis of the key judgements made at each reporting period. If inclusion in the LCD was considered probable, then
management also considered: the likelihood that back-payments would be received from CMS for tests performed
to date; and whether a reliable estimate of this payment could be determined.
This CMS decision making process to provide coverage under the LCD is delegated to the Medical Director of
the relevant CMS administrator, which, in the Group’s case, is the Medical Director at Novitas. The inclusion under
the LCD is therefore at the discretion of the Novitas Medical Director so the disclosure of the relevant process is
the key element in the decision making with regard to the timing of the payment of invoices for both current and
retrospective services to CMS patients.
Notes to the Financial Statements
For the year ended 31 March 2018
Notes to the Financial Statements
For the year ended 31 March 2018

PACIFIC EDGE LIMITED ANNUAL REPORT 2018PACIFIC EDGE LIMITED ANNUAL REPORT 2018
3736
The following table reflects the key judgements in respect of revenue recognition relevant to each reporting period
since the 2014 financial reporting year:
Reporting dateKey judgements and estimates
31 March 2014Cxbladder testing commenced in the US market late in the financial year. At year
end, the likelihood of obtaining LCD Inclusion in the next few months was considered
remote. No revenue was recognised for Cxbladder tests performed for patients with
CMS cover.
31 March 2015The Group was seeking LCD inclusion to enable the recovery of revenue for
historic and on-going services provided to CMS patients, and was notified by the
Medical Director for CMS’s administrator (Novitas) that LCD was dependent on the
submission of substantial equivalence to a benchmark covered test. This requirement
had been achieved by the Group in FY15 and the Group determined that the LCD was
probable as a result.
Following this disclosure, the process for LCD changed on the resignation of the
incumbent Medical Director in early FY16. The expectation by advisors to the Group
was that the process would remain similar.
The change in LCD process led to a change in the timing and the Group’s expectation
and understanding with regard to payment for retrospective services. Prior precedent
with other molecular diagnostic companies who had traversed this LCD process
provided the benchmark for the expectation. This information was deemed to be
sufficiently reliable for the Group to accrue revenue for the tests completed for CMS
patients.
As part of the transition to NZ IFRS 15, the Group has reassessed the information that
was received in FY15 and this is discussed further below.
31 March 2016During FY16, the Medical Director at Novitas changed and consequently the LCD
process migrated to the specific expectations of the new Medical Director. Over the
following 18 months, greater clarity was received on the changes to the LCD process
and confirmed to the Group that LCD coverage could therefore be expected to
take longer than initially anticipated. On that basis, no revenue was recognised for
Cxbladder tests performed for patients with CMS cover in FY16.
31 March 2017The process for obtaining LCD inclusion continued to morph and changes to our
expectation were subsequently also modified. However, there was no prescribed
process or defined timetable for coverage under the LCD and as such, no revenue
was recognised for Cxbladder tests performed for patients with CMS cover in FY17.
Re-assessment of FY15 revenue accruals
During the NZ IFRS 15 implementation process, the Group has re-assessed the information used and judgements
and assumptions made at each reporting period. It has been identified that the information the Group relied upon
in FY15 to accrue revenue for CMS tests totalling $645,000 was not deemed to be reliable and did not provide the
Group with the virtual certainty of the CMS LCD being obtained in the immediately forseeable future. The Group
has also identified that the rate applied to the private payer tests in the same year was less than what the third
party data was showing at the time and a further $402,000 should have been accrued for these tests as a result.
The net impact of these two items is that revenue was overstated in FY15 by $243,000. In re-assessing this as part
of the transition to NZ IFRS 15, the Group has assessed that this was an immaterial error in applying the accounting
policy in FY15. For transparency, this has been shown separately in the transition tables on pages 40 and 41.
Impact of adoption of NZ IFRS 15
NZ IFRS 15 provides five criteria which must be met before an entity accounts for a contract with a customer under
the revenue standard:
• the contract has been approved
• the rights of each party are identified
• payment terms are identified
• the contract has commercial substance, and
• it is probable that consideration will be collected for the goods or services transferred.
Until LCD inclusion is obtained, the Group cannot seek reimbursement from CMS or the patient for any tests
performed for patients with government insurance. For these tests, the Group has determined that payment is not
probable and that no revenue will be recognised under NZ IFRS 15. This judgement has resulted in no change to
the revenue recognition policy for these tests.
Revenue recognition – patients with private insurance
Previous accounting under NZ IAS 18
Under NZ IAS 18, revenue was recognised once the Cxbladder test results were returned to the patient’s physician
to the extent that the Group determined it was probable that consideration would be received and an estimate of
the amount to be received could be reliably estimated. In the time since Cxbladder tests first started to be sold
commercially in the US market, only a small number of agreements have been entered into with private insurers,
which represent a small percentage of tests performed. While the Group is out of network with private insurers,
payments can take over a year to be received and the quantum received for each test can vary. The Group has had
to apply significant estimates and judgements in each reporting period to determine the amount that was probable
for collection and appropriate to recognise as revenue in accordance with NZ IAS 18.
Critical to this process has been the reliability of data provided by the Group’s billing and reimbursement agency,
Quadax Inc. In each year of operation, the Group received from Quadax payment data for Cxbladder tests
performed. Quadax is one of the leading billing and reimbursement agencies in the US in the molecular diagnostics
field. Up until FY17, the Group was reliant on benchmarking data provided by the agency. Each financial year,
Quadax provided payment data to the Group from other healthcare entities that were at a similar stage in the
lifecycle to the Group to support the benchmarking rates applied. At each reporting period, the Group assessed the
reliability and the relevance of this data, to determine if it was appropriate to use this data as the basis for some of
their key inputs to the revenue recognition model. As the Group’s own payment data has developed, the Group has
also assessed how sufficient and reliable its own data is, and the extent to which this was used in conjunction with
this market data.
The following data was used by management to estimate probable revenue:
• Estimated time to process and settle claims based on historical timeframes
• Historic collection rates
• Historic patient eligibility rates
• Historic collection probability
• Gross Recoverable Rate per test, being the average rate recovered for paid tests
• Patient profile – CMS and private insurers
• Historic write off rates
Notes to the Financial Statements
For the year ended 31 March 2018
Notes to the Financial Statements
For the year ended 31 March 2018

PACIFIC EDGE LIMITED ANNUAL REPORT 2018PACIFIC EDGE LIMITED ANNUAL REPORT 2018
3938
This information was used to determine:
• % of tests for which no payment was probable
• % of list price likely to be received from the insurer where some payment was probable
• Average time to receive payments from the insurer
The following table reflects the key judgements, in respect of the assumptions adopted in calculating the
recognised revenues relevant to each reporting period since the 2014 financial reporting year:
Reporting DateKey judgements and estimates
31 March 2014Cxbladder testing commenced in the US market late in the financial year. Due to
the limited number of tests completed during this year, the information available to
the company was industry specific rather than company specific. This was used to
calculate revenue and receivables and was in line with industry guidance obtained.
There were no matters arising requiring reassessment of the accounting policy
applied or reported balances on transition to NZ IFRS 15.
31 March 2015During the year to 31 March 2015 there were limited sales in the first 6 months, with
most revenue generated in the second half of the financial year.
Recovery rates for tests completed were in line with 2014 revenue accrual rate across
all tests and in line with industry information obtained.
The processing time was in line with expectations and industry guidance with no
contradictory information or indication of issues in collection.
It was determined that while Company specific data available was consistent with
market data, it was not sufficient to use as the basis for setting revenue recognition
assumptions. The Group continued to use industry specific information to calculate
revenue and receivables.
As noted on page 36, the rates of revenue accruals used in FY15 have been re-
assessed as part of the transition to NZ IFRS 15. This re-assessment has resulted
in additional revenue of $402,000 being recognised as part of the re-assessment.
For transparency, this re-assessment, net of the re-assessment to the CMS revenue
in FY15, is shown in the transition tables on pages 40 and 41 as an adjustment to
opening accumulated losses as at 1 April 2016.
There were no further matters arising requiring reassessment of the accounting policy
applied or reported balances on transition to NZ IFRS 15.
31 March 2016At 31 March 2016, transaction data available to the Group extended over a period of
30 months with 18 months representing strong growth in test numbers.
The cash receipts demonstrated an increase in Gross Recoverable Rate per test
completed compared to the prior year accrued rate.
The recovery rates per test completed were demonstrated to be in line with
expectations and industry information obtained from Quadax for other companies
at a similar stage in their lifecycle. This market data supported an increase in the
recovery rate estimated for tests for which payment was probable. There were no
indications of issues in recovery of monies to suggest a revision of the application of
our impairment policy was required.
There were no further matters arising requiring reassessment of the accounting policy
applied or reported balances on transition to NZ IFRS 15.
Reporting DateKey judgements and estimates
31 March 2017As at 31 March 2017, there was 42 months of tests and Group specific payment data
available with the majority of the tests occurring within the last 30 months. The actual
data available was now considered sufficient to enable a reassessment of the time to
process and settle claims and the recovery rates achieved. This data was available at a
more disaggregated level, allowing analysis by private insurer.
The time to process and settle claims was positively impacted by the length of time
the product had now been available in the market. There was now more awareness,
acceptance and familiarity by commercial insurers which resulted in an observable
reduction in the amount of time to process and settle claims compared to earlier
years of operation.
Cash receipts demonstrated an increase in Gross Recoverable Rate per test
completed compared to the prior year accrued rate.
The Group determined that it was now appropriate to use its own historical payment
data as the basis for its revenue estimates, but continued to benchmark this against
Quadax market data.
In considering the observed reduction in time to process and settle claims, the
Group reassessed the recovery of the open claims. As a result, the Group wrote off
$2.4 million of trade receivables and also recognised a doubtful debt provision of
$0.6 million. There were no further matters arising requiring reassessment of the
accounting policy applied or reported balances on transition to NZ IFRS 15.
Our assessment following our transition to NZ IFRS 15 has not caused the Group to consider any further
adjustments beyond the adjustments noted in FY15.
Impact of adoption of NZ IFRS 15
The Group is out of network with almost all private insurers in the US market and so the Test Requisition Form
signed by the patient is the key contract in this revenue stream. In assessing the information contained in this
document, the Group has concluded that the payment terms are unclear. This means that Cxbladder sales in the US
do not meet the required criteria under NZ IFRS 15 to enable revenue to be recognised when the test is undertaken
and results are delivered to the ordering physician.
The Group has recognised Cxbladder sales in the US on a cash received basis on transition to NZ IFRS 15. As new
agreements are entered into, the Group will revisit this judgement, to determine if the criteria to account for a
contract are met as a result.
Notes to the Financial Statements
For the year ended 31 March 2018
Notes to the Financial Statements
For the year ended 31 March 2018

PACIFIC EDGE LIMITED ANNUAL REPORT 2018PACIFIC EDGE LIMITED ANNUAL REPORT 2018
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Impact of NZ IFRS 15 on Previously Reported Financial Results
The specific financial statement line items affected by the change to the accounting policy for revenue recognition
are as follows:
2016
Previously
Reported
($000)
Adjustment
($000)
(i)
Transition
Adjustment
($000)
2016
($000)
RESTATED
Opening Balance Sheet
1 April 2016
Accounts Receivable5,730(243)(4,031)1,456a
Total Current Assets31,093(243)(4,031)26,819a
Total Assets32,330(243)(4,031)28,056a
Net Assets29,807(243)(4,031)25,533a
Accumulated Losses(73,527)(263)(4,099)(77,889)c
Foreign Currency Translation
Reserve
91820681,006b
Total Equity29,807(243)(4,031)25,533a
2017
Previously
Reported
($000)
Adjustment
($000)
(i)
Transition
Adjustment
($000)
2017
($000)
RESTATED
Opening Balance Sheet
31 March 2017
Accounts Receivable6,519(290)(5,566)663a
Total Current Assets22,397(290)(5,566)16,541a
Total Assets23,563(290)(5,566)17,707a
Net Assets20,829(290)(5,566)14,973a
Accumulated Losses(94,507)(284)(5,684)(100,475)c
Foreign Currency Translation
Reserve
8516106963b
Total Equity20,829(290)(5,566)14,973a
(i) This adjustment represents the correction of the FY15 incorrect application of the accounting policy and the restated foreign
currency impact.
a) The transition adjustments reduce accounts receivable at 1 April 2016 and 31 March 2017 to remove
all previously recognised Cxbladder tests trade receivables from the relevant period that cannot be
recognised under NZ IFRS 15.
b) Represents the foreign currency translation adjustment relating to adjustments a) above.
c) Reflects the net of adjustments a) and b) above.
Statement of Comprehensive Income for the year ended 31 March 2017
The specific financial statement line items affected by the change to the accounting policy for revenue recognition
are as follows:
For the year ended
31 March 2017
2017
Previously
Reported
($000)
Adjustment
($000)
(ii)

Transition
Adjustment
($000)
2017
($000)
RESTATED
Operating Revenue8,062-(4,854)3,208a
Total Operating Revenue8,062-(4,854)3,208a
Total Revenue9,535-(4,854)4,681a
Other Expenses22,685(277)(2,971)19,437b
- Bad Debts Expense2,635(277)(2,358)-b
- Doubtful Debts Expense613-(613)-b
Total Operating Expenses30,515(277)(2,971)27,267b
Net Loss Before Tax(20,980)(277)(1,329)(22,586)c
Loss for the Year After Tax(20,980)(277)(1,329)(22,586)c
Translation Foreign
Operations
(67)4 20(43)d
Total Comprehensive Loss(21,048)(273)(1,308)(22,629)e
Basic and Diluted Earnings
per Share
(0.056) (0.000) (0.001) (0.057)e
(ii) This adjustment represents the correction of the previously recognised FY15 revenue that was written off in FY17 including the
related foreign currency impact.
a) US Cxbladder test revenue has reduced with the change in policy to a cash receipts basis.
b) The bad and doubtful debts expense recognised for trade receivables relating to US Cxbladder tests has
been reversed. A total of 1,020 CMS tests were written off and 1,134 private insurance tests written off. A
further 1,064 tests with less probability of payment had some level of provision applied against them at
the end of FY17.
c) Reflects the net of adjustments a) and b) above.
d) Represents the foreign currency translation adjustment relating to adjustments a) and b) above.
e) The adjustment to total comprehensive loss and included in the calculation for basic and diluted earnings
per share is the net of adjustments c) and d) above.
Notes to the Financial Statements
For the year ended 31 March 2018
Notes to the Financial Statements
For the year ended 31 March 2018

PACIFIC EDGE LIMITED ANNUAL REPORT 2018PACIFIC EDGE LIMITED ANNUAL REPORT 2018
4342
Standards and Interpretations issued but not yet effective and relevant to the Group
NZ IFRS 16: Leases (Effective date: periods beginning on or after 1 January 2019):
NZ IFRS 16, ‘Leases’, replaces the current guidance in NZ IAS 17. Under NZ IFRS 16, a contract is, or contains, a
lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for
consideration. Under NZ IAS 17, a lessee was required to make a distinction between a finance lease (on balance
sheet) and an operating lease (off balance sheet). NZ IFRS 16 now requires a lessee to recognise a lease liability
reflecting future lease payments and a ‘right-of-use asset’ for virtually all lease contracts. Included is an optional
exemption for certain short-term leases and leases of low-value assets; however, this exemption can only be
applied by lessees. The standard is effective for accounting periods beginning on or after 1 January 2019. Early
adoption is permitted but only in conjunction with NZ IFRS 15, ‘Revenue from Contracts with Customers’.
NZ IFRS 16 is effective from 1 January 2019. This new accounting standard eliminates the distinction between
operating and finance leases and will result in lessees bringing most leases on to their balance sheets. The expense
previously recorded in relation to operating leases will move from being included in operating leases to within
depreciation and finance expenses. Extensive disclosures are also required by NZ IFRS 16. The Company expects to
adopt this standard on its effective date and apply this standard to the 2020 financial statements.
As at 31 March 2018, the Company has non-cancellable operating lease commitments of $2,197,000.
The Company has performed an initial assessment of the financial impact on the Company of the new standard.
Most of the Company’s operating leases are property leases and the Company does not have a significant amount
of other leased assets. The Company’s initial assessment is that this standard could have a significant impact on
the Company’s financial statements. A detailed impact assessment of the new standard will be performed during
the 2019 financial year and the results of this assessment will be reported in the 2019 financial statements. It is not
practicable to provide a reasonable estimate of the financial effect of the new standard until the detailed impact
assessment has been completed.
NZ IFRS 9: Financial Instruments (Effective date: periods beginning on or after 1 January 2019):
NZ IFRS 9 establishes the principles for hedge accounting and impairment of financial assets. Under NZ IFRS 9,
greater flexibility has been introduced to the types of transactions eligible for hedge accounting. In addition, the
effectiveness test has been overhauled and replaced with the principle of an ‘economic relationship’. Retrospective
assessment of hedge effectiveness is also no longer required. Enhanced disclosure requirements about an entity’s
risk management activities have also been introduced. In relation to the impairment of financial assets NZ IFRS
9 requires an expected credit loss model, as opposed to an incurred credit loss model under NZ IAS 39. The
expected credit loss model requires an entity to account for expected credit losses and changes in those expected
credit losses at each reporting date to reflect changes. Until the Group has significant accounts receivable balances
or significant customer contracts in place, Management does not expect a significant change to the way in which
the Group measures its financial statements as a result of this new standard. The Group will continue to assess
the impact of this standard and any significant contracts that the Group obtains, prior to the adoption of the new
standard.
There are no other NZ IFRS or NZ IFRIC interpretations that are not yet effective that would be expected to have a
material impact on the Group.
3. EARNINGS PER SHARE
(a) Basic
Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company by the
weighted average number of ordinary shares on issue during the year excluding ordinary shares purchased by the
Company (Note 20).
GROUP
2018
($000)
2017
($000)
RESTATED
Loss attributable to equity holders of the Company(19,727)(22,629)
Weighted average number of ordinary shares on issue434,256398,041
Earnings per share(0.045)(0.057)
(b) Diluted
Diluted earnings per share is calculated by adjusting the weighted average number of shares outstanding to
assume conversion of all dilutive potential ordinary shares. The Group’s dilutive potential ordinary shares are in the
form of share options. As the Group made a loss during the current year and losses cannot be diluted, basic and
diluted earnings per share are the same.
4. LABORATORY THROUGHPUT AND BILLABLE TESTS
Laboratory Throughput is a key metric for the Group: Laboratory Throughput provides evidence of the increasing
usage of Cxbladder products globally and the rates of adoption between different customer segments. Total
laboratory throughput includes billable tests, which are invoiced to customers (including CMS tests), and tests
which are not considered to be billable as these tests relate to user programs or other non-chargeable activities.
Billable test numbers are also a key metric for the Group: Billable tests are those tests for which the Company is
actively seeking reimbursement and cash receipts. Given the time lag in the US between processing a Cxbladder
test and receiving the associated cash receipts, reported revenue based on the application of our accounting policy
and billable tests do not correlate in the same time period with one another. Billable test numbers also include tests
for CMS patients, which are all invoiced to CMS but for which revenue is not being recognised. Further detail on the
accounting policy for revenue recognition is included in Note 5.
Laboratory throughput and billable tests per financial year are shown below.
FY15FY16FY17FY18
Total Laboratory Throughput (tests)3,9108,34811,24614,448
Increase in Total Laboratory Throughput (%)n/a114%35%28%
Increase in Throughput from previous year (tests)n/a(+) 4,438(+) 2,898(+) 3,202
Total Billable Tests (tests)2,8035,5788,29711,866
Billable Tests as a percentage of Total
Laboratory Throughput (%)
72%67%74%82%
Increase in Billable Tests from previous year (%)n/a99%49%43%
Notes to the Financial Statements
For the year ended 31 March 2018
Notes to the Financial Statements
For the year ended 31 March 2018

PACIFIC EDGE LIMITED ANNUAL REPORT 2018PACIFIC EDGE LIMITED ANNUAL REPORT 2018
4544
5. OPERATING REVENUE AND OTHER INCOME
ACCOUNTING POLICIES
Revenue Recognition
Revenue from Cxbladder tests
US customers – patients covered by CMS
The Group performs Cxbladder tests when requested by a patient’s physician. At the point the test results are
returned to the physician, the Group has satisfied its performance obligation and has the right to issue an invoice.
However the Group has judged it is not probable that any consideration will be received as inclusion in the Local
Coverage Determination (LCD) with the Centers for Medicare and Medicaid (CMS) has not yet been obtained. No
revenue is recognised for any patients covered by CMS.
US customers – patients covered by private insurance/no insurance cover
The Group performs Cxbladder tests when requested by a patient’s physician. At the point the test results are
returned to the physician, the Group has satisfied its performance obligation and has the right to issue an invoice.
The Group currently has a number of agreements signed with private insurers, covering only a small percentage
of the patient population which is currently deemed to be immaterial for accounting purposes. The signed Test
Requisition Form (TRF) has been determined to be the contract with the patient as the customer. The Group has
made a judgement that the payment terms contained in the TRF are unclear and that the criteria to be able to
account for the contract under NZ IFRS 15 are not met. Revenue is recognised only when cash is received and it is
non-refundable.
Rest of World customers
The Group performs Cxbladder tests when requested by a patient’s physician in New Zealand, Australia and
Singapore. At the point the test results are returned to the physician, the Group has satisfied its performance
obligation and an invoice is issued to the customer. In all rest of world locations, there is a clearly defined contract
with the customer meeting the requirements of NZ IFRS 15. Revenue is recognised when the invoice is issued.
Rest of World Customers - Licence Fees
Licence fees are recognised in Operating Revenue in the accounting period in which the licence is granted, after
the contract has been signed. Licence terms meet the criteria to be a right of use licence.
OTHER INCOME
Grant Income
Government Grants are not recognised until there is reasonable assurance that the Group will comply with the
conditions attached to them and that the grants will be received. Government grants are recognised in Other
Income in the Statement of Comprehensive Income, on a systematic basis over the periods in which the Group
recognises as expenses the related costs for which the grants are intended to compensate.
All financial conditions of the grants have been complied with.
Cxbladder Research Rebate
A Cxbladder research programme is administered by Pacific Edge Pty Ltd and tax rebates are received as a result
of this programme.
Cxbladder research rebate is recognised at its fair value where there is a reasonable assurance that the rebate will
be received and the Group will comply with all attached conditions.
All conditions of the research rebate have been complied with. Payment will be received after submission of each
annual research and development tax claim.
Revenue and Other Income
GROUP
2018
($000)
2017
($000)
RESTATED
Cxbladder Sales
- US3,1882,911
- Rest of World212190
Licence Fees-107
Total Operating Revenue 3,400 3,208
Other Income
Grant Income 853 876
Research Rebate Received 389 229
Total Other Income 1,242 1,105
All US based Cxbladder tests have been recognised on a cash basis and the cash received relates to Cxbladder
tests processed during FY18 and in previous financial years. For Cxbladder tests for customers not based in the US,
revenue has been recognised on an accrual basis in the year it relates to.
Grants are for the reimbursement of research costs. The Company has been awarded grants from Callaghan
Innovation and New Zealand Trade and Enterprise.
Callaghan Innovation has awarded the Company a Growth Grant, which commenced on 1 January 2014 and runs
until 31 December 2018. Callaghan Innovation reimburses the Company for 20 percent of eligible expenditure
on the Group’s R&D programme. This eligible expenditure complies with NZ IAS 38: Intangible Assets and the
Ministerial Direction / New Zealand Gazette, No 146.
For the year ended 31 March 2018, the total eligible expenditure under this Growth Grant was $3,766,000 (2017:
$3,953,000). The Company also receives grants from Callaghan Innovation for postgraduate internships and
summer students.
New Zealand Trade and Enterprise have awarded the Company an International Growth Fund grant, to support the
startup of the Group’s operations in Singapore. This grant commenced on 14 May 2015 and runs until 31 January
2019. New Zealand Trade and Enterprise reimburses the Company for 50 percent of eligible expenditure relating to
the Singapore operations.
All conditions of the grants have been complied with.
Unrecognised revenue
Approximately 50% of all Cxbladder tests performed by the Group in the US relate to patients covered by CMS.
The Group presently invoices CMS tests performed for all US Medicare patients with CMS coverage, however no
revenue from these tests is recognised. Upon issuance of the LCD, the Group expects to be reimbursed at the
agreed rate for all US Medicare patients for tests performed after that date. The Group may also be reimbursed for
some tests completed prior to the issuance of the LCD. No contingent asset has been disclosed at 31 March 2018 as
it is not certain when the LCD process will be completed, nor whether any backpayment will be received.
To date, a total of 12,288 tests have been performed that relate to patients covered by CMS, for which no payments
have been received.
Notes to the Financial Statements
For the year ended 31 March 2018
Notes to the Financial Statements
For the year ended 31 March 2018

PACIFIC EDGE LIMITED ANNUAL REPORT 2018PACIFIC EDGE LIMITED ANNUAL REPORT 2018
4746
For patients with private insurance cover or no insurance cover, revenue has only been recognised when and
to the extent payment has been received, leaving a significant portion of invoiced amounts unrecognised. The
level of unrecognised revenue is expected to gradually decrease as the Group concludes firm agreements for
reimbursement with individual payers, principally the insurance companies. A contingent asset of $5,108,000 has
been estimated at 31 March 2018 for private insurance receivables as an inflow of economic benefits is considered
probable by the Group.
To date, a total of 4,122 tests have been performed that relate to patients covered by private insurance, for which
no payments have been received. Therefore, no revenue has been recognised for any of these tests. These patients
are actively being chased for payment.
6. INTEREST INCOME
ACCOUNTING POLICY
Interest income is recognised using the effective interest method. When a receivable is impaired, the Group reduces
the carrying amount to its recoverable amount, being the estimated future cash flow discounted at the original
effective interest rate of the instrument and continues unwinding the discount as interest income. Interest income
on impaired loans is recognised using the original effective interest rate.
7. RESEARCH AND DEVELOPMENT COSTS
ACCOUNTING POLICY
Research is the original and planned investigation undertaken with the prospect of gaining new scientific
knowledge and understanding. This includes: direct and overhead expenses for diagnostic and prognostic
biomarker discovery and research; pre-clinical trials; and costs associated with clinical trial activities. All research
costs are expensed when incurred.
Development is the application of research findings to a plan or design for the production of new or substantially
improved processes or products prior to the commencement of commercial production.
When a project reaches the stage where it is probable that future expenditure can be recovered through the
process or products produced, expenditure that is directly attributed or reasonably allocated to that project is
recognised as a development asset within intangible assets. If the expenditure also benefits processes or products
for which it cannot be recovered, it will be expensed. The asset will be amortised from the date of commencement
of commercial production of the product to which it relates on a straight-line basis over the period of expected
benefit. Development assets are reviewed annually for any impairment in their carrying value.
GROUP
2018
($000)
2017
($000)
Research 4,384 6,088
Includes:
Employee Benefits (refer Note 10) 1,831 1,977
8. EMPLOYEE EQUITY EQUIVALENT INCENTIVE SCHEME
In March 2011 the Company developed an “Incentive Plan” as a means of providing Key Persons with the
opportunity to participate in the potential increasing profitability of the Group. The Plan was an Equity Equivalent
(EE) Scheme that provided EE Units on the following terms:
- EE Units were vested to the Participant over a period of 4 years but not able to be redeemed during the
first two years from the date of their issue.
- Each EE Unit has the equivalent value of an ordinary share in the Company.
- Redemption is in cash for the difference between the value of the EE Units at the time of allocation and
their value at the time of redemption.
- The Company must be trading in a cash flow positive position and the Company’s share price on the NZX
must have reached $1.00 per share.
- A maximum of 25% of a Participant’s vested EE Units can be redeemed in any one year.
On 30 June 2016 the Board of Directors voted in favour of winding up this scheme. 6,253,000 EE units had been
issued at this date of which 5,720,500 had vested. After obtaining an independent valuation and receiving approval
from the EE unit holders to cancel the scheme, the scheme was cancelled and 5,194,583 shares were issued to
employees as consideration at $0.563 per share. This has been treated as a modification from a cash settled to
equity settled share scheme. The shares were issued with no vesting conditions attached and as no liability had
been recognised for these EE units in previous years, this has resulted in a non-cash equity share based payment
expense for the 2017 period of $2,925,000. This total included amounts relating to current and former employees,
Directors and Consultants. $2,391,000 of this balance was attributable to employees and is included in Note 10
as an employee benefit, and of the amount included in employee benefits, $1,131,000 of this expense related to
persons classified as Related Parties and has also been disclosed in Note 24.
Notes to the Financial Statements
For the year ended 31 March 2018
Notes to the Financial Statements
For the year ended 31 March 2018

PACIFIC EDGE LIMITED ANNUAL REPORT 2018PACIFIC EDGE LIMITED ANNUAL REPORT 2018
4948
10. EMPLOYEE BENEFITS
GROUP
Notes
2018
($000)
2017
($000)
Represented by:
Employee Benefits in Research7 1,831 1,977
Employee Benefits in General & Administration92,4342,065
Short Term Salaries, Wages and Other Employee Benefits 6,720 6,353
10,985 10,395
Non-Cash Employee Benefits:
Employee Share Scheme Expenses 96 -
Share Option Expense 1,184 485
Share Issue Expense: Employee Equity Equivalent
Incentive Scheme
8/9 - 2,925
1,2803,410
Total Employee Benefits 12,265 13,805
Employee Share Scheme
The Company has an Employee Share Scheme where ordinary shares in the Company may be issued to selected
employees to recognise performance or a significant contribution to the Company. These shares may be issued
in lieu of a cash bonus or in addition to the employee’s remuneration. The ordinary shares are issued directly to
the employee and the Company accounts for the cost of the shares. The shares are allocated to the employee on
the date that the Board approves the issue of the share capital. All employees who hold ordinary shares in the
Company must comply with the Company’s Share Trading Policy.
The issuance of ordinary shares to employees is treated as equity settled share-based payments. Equity-settled
share-based payments to employees are measured at the fair value of the equity instruments at the grant date
based on the market price at the time of issuance. The fair value of shares granted is recognised as an employee
expense in the Statement of Comprehensive Income when the shares are issued. During the 2018 financial year,
173,655 (2017: 33,100) ordinary shares were issued to employees as part of the Employee Share Scheme. The
associated non-cash cost of these shares was $96,000 (2017: Nil). Refer to Note 20 for further details on the shares
issued during the financial year.
Employee Share Option Scheme
The Board believes that the issue of share options provides an appropriate incentive for participating employees
to grow the total shareholder return of the Company. Share options are issued to selected employees to recognise
performance or contribution to the Company or as a long-term component of remuneration in accordance with the
Group’s remuneration policy.
The Company has two categories of Share Options which are outlined below.
Performance Options
Performance Options are issued to selected employees to recognise performance or a significant contribution to
the Company. Performance Options entitle the holder, on payment of the exercise price, to one ordinary share
in the capital of the Company. The exercise price of the granted options is determined using the fair value of the
Company’s share price at the time of the options being granted. Performance Options vest immediately and there
is no service requirement linked to the options or any other vesting conditions. The term in which options may be
exercised, and ultimately lapse if not exercised, is 10 years.
9. GENERAL AND ADMINISTRATION EXPENSES
GROUP
Notes
2018
($000)
2017
($000)
Amortisation16 138 139
Auditors Remuneration – Audit Fees89 67
– Other Assurance Services (refer below) 26 5
Depreciation15 167 203
Directors Fees24 275 287
Employee Benefits10 2,434 2,065
Employee Equity Equivalent Incentive Scheme8/10-2,925
Employee Share Scheme Expenses1096-
Employee Share Options10 956 485
Rental and Lease Expense 262 260
Other General and Administration Expenses 1,764 1,846
Total General and Adminstration Expenses 6,207 8,282
Note Amortisation, Depreciation and Employee Benefits are included in other functional analysis. Refer to relevant
notes for full expense by nature.
Other Assurance Services
Other assurance services performed by the auditor includes; agreed upon procedures, review procedures and a
review of the Callaghan Innovation Growth Grant claim.
Employee Share Options
Employee Share Options are a non-cash expense. Refer to Note 10 for details of the accounting policy for
Employee Share Schemes.
Other General and Administration Expenses
The major categories of expenditure which make up Other General and Administration Expenses, but are not
disclosed separately above, are NZX and Registry fees, Investor Relations costs, Consultants and Contractors.
Notes to the Financial Statements
For the year ended 31 March 2018
Notes to the Financial Statements
For the year ended 31 March 2018

PACIFIC EDGE LIMITED ANNUAL REPORT 2018PACIFIC EDGE LIMITED ANNUAL REPORT 2018
5150
Notes to the Financial Statements
For the year ended 31 March 2018
Incentive Options
Incentive Options are issued to selected employees as a long-term component of remuneration in accordance
with the Group’s remuneration policy. Incentive Options entitle the holder, on payment of the exercise price, to one
ordinary share in the capital of the Company.
The exercise price of the granted options is determined using the fair value of the Company’s share price at the
time of the options being granted. Incentive Options vest over three years and there is a requirement to remain
as an employee of the Company in order for the options to vest. Tranches of options are exercisable over four to
ten years from the relevant vesting date. No options can be exercised later than the tenth anniversary of the final
vesting date.
ACCOUNTING POLICY
All options are accounted for as equity settled share based payments as the Group has no legal or constructive
obligation to repurchase or settle either the Performance Options or the Incentive Options in cash.
The fair value of all options granted is recognised as an expense in the Statement of Comprehensive Income
over their vesting period, with a corresponding increase in the employee share option reserve. The fair value is
determined at the grant date of the options and expensed on a straight-line basis over the vesting period, based
on the Group’s estimate of equity instruments that will eventually vest, with a corresponding increase in equity. At
the end of each reporting period, the Group revisits its estimate of the number of equity instruments expected to
vest. The impact of the revision of the original estimates, if any, is recognised in the Statement of Comprehensive
Income such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to the
share based payments reserve.
During the year, 259,585 (2017: Nil) share options were exercised resulting in an increase in share capital. Refer to
Note 20 for further details on the share options that were exercised.
Movements in the number of share options outstanding and their related weighted average exercise prices are as
follows:
GROUP
20182017
Weighted average
exercise price
$
Options
#
Weighted average
exercise price
$
Options
#
Outstanding at 1 April0.646,839,8570.65 6,448,827
Granted0.514,800,0000.53 470,000
Forfeited 0.65(158,328)0.64 (78,970)
Exercised0.36(259,585)--
Expired----
Outstanding at 31 March0.5911,221,9440.64 6,839,857
Exercisable at 31 March0.629,041,2670.66 6,373,252
The significant inputs into the Black-Scholes valuation model, were the weighted average market share price at
grant date of the options, the exercise price shown below, the expected annualised volatility of 50%, a dividend
yield of 0%, an expected option life of between one and ten years and an annual risk-free interest rate of between
2.25% and 4.71%.
The volatility measured is the standard deviation of continuously compounded share returns and is based on a
statistical analysis of daily share prices in the past one to ten years.
Share options outstanding at the end of the reporting periods have the following expiry dates, vesting dates and
exercise prices:
Vesting DateExpiry Month
Exercise
Price
$
31 March 18
Options
#
31 March 17
Options
#
April 2013April 20170.36 - 259,585
April 2014April 20180.36 259,585 259,585
August 2014August 20180.54 83,333 83,333
September 2014September 20180.80 73,000 73,000 *
November 2014November 20180.54 200,000 200,000
April 2015April 20190.36 259,585 259,585
June 2015June 20190.69 13,333 13,333
July 2015July 20190.69 6,666 6,666
August 2015August 20190.54 83,333 83,333
September 2015September 20190.80 750,000 750,000
November 2015November 20190.54 200,000 200,000
June 2016June 20200.69 13,077 13,077
July 2016July 20200.69 2,740 2,740
August 2016August 20200.54 83,334 83,334
September 2016September 20200.80 750,000 750,000
November 2016November 20200.54 200,000 200,000
September 2017September 20210.80 750,000 750,000
September 2014September 20240.69 310,000 310,000*
April 2015April 20250.69 6,666 6,666
July 2015July 20250.69 345,831 345,831
August 2015August 20250.72 4,166 4,166
September 2015September 20250.50270,000 270,000 *
September 2015September 20250.69 15,000 15,000
September 2015September 20250.72 14,998 14,998
November 2015November 20250.72 83,333 83,333
January 2016January 20260.72 17,498 17,498
April 2016April 20260.69 6,667 6,667
July 2016July 20260.50 8,332 8,332
July 2016July 20260.69 345,834 345,834
August 2016August 20260.50 8,332 8,332
August 2016August 20260.72 2,866 2,866
September 2016September 20260.50 85,333 85,333
September 2016September 20260.69 15,000 15,000
September 2016September 20260.72 15,001 15,001
November 2016November 20260.50 50,000 50,000
November 2016November 20260.60 14,998 14,998
November 2016November 20260.72 83,333 83,333
Notes to the Financial Statements
For the year ended 31 March 2018

PACIFIC EDGE LIMITED ANNUAL REPORT 2018PACIFIC EDGE LIMITED ANNUAL REPORT 2018
5352
Vesting DateExpiry Month
Exercise
Price
$
31 March 18
Options
#
31 March 17
Options
#
December 2016December 20260.60 4,166 4,166
January 2017January 20270.72 10,834 10,834
February 2017February 20270.60 10,000 10,000
March 2017March 20270.60 4,166 4,166
April 2017April 20270.60 75,000 75,000
April 2017April 20270.69 6,667 6,667
May 2017May 20270.60 - 40,000
July 2017July 20270.50 4,190 4,190
July 2017July 20270.69 343,346 343,346
August 2017August 20270.48 4,166 4,166
August 2017August 20270.50 8,334 8,334
September 2017September 20270.48 6,666 19,166
September 2017September 20270.50 79,169 85,333
September 2017September 20270.69 15,000 15,000
September 2017September 20270.72 10,594 11,302
October 2017October 20270.48 20,000 20,000
November 2017November 20270.60 10,252 10,252
November 2017November 20270.72 83,334 83,334
December 2017December 20270.60 1,872 4,167
December 2017December 20270.51 4,166 -
January 2018January 20280.72 7,473 10,834
January 2018January 20280.51 12,498 -
February 2018February 20280.60 10,000 10,000
March 2018March 20280.60 4,167 4,167
April 2018April 20280.60 75,000 75,000
May 2018May 20280.51 1,583,326 -
July 2018July 20280.50 2,671 2,671
August 2018August 20280.48 4,167 4,167
August 2018August 20280.50 4,315 8,334
September 2018September 20280.48 6,667 6,667
September 2018September 20280.50 219 85,334
October 2018October 20280.48 30,000 30,000
November 2018November 20280.60 8,334 8,334
December 2018December 20280.60 - 4,167
December 2018December 20280.51 4,167 -
January 2019January 20290.51 12,501 -
February 2019February 20290.60 10,000 10,000
March 2019March 20290.60 4,167 4,167
April 2019April 20290.60 75,000 75,000
Vesting DateExpiry Month
Exercise
Price
$
31 March 18
Options
#
31 March 17
Options
#
May 2019May 20290.51 1,583,335 -
August 2019August 20290.48 4,167 4,167
September 2019September 20290.48 6,667 6,667
October 2019October 20290.48 40,000 40,000
December 2019December 20290.51 4,167 -
January 2020January 20300.51 12,501 -
May 2020May 20300.51 1,583,339 -
11,221,944 6,839,857
* Included within these tranches are 703,000 options (2017: 703,000) that vested immediately.
11. CASH, CASH EQUIVALENTS AND SHORT TERM DEPOSITS
ACCOUNTING POLICY
Cash at Bank includes cash in hand, deposits held on call with banks, other short-term highly liquid investments
with original maturities of three months or less, and bank overdrafts.
Short Term Deposits are with the Bank of New Zealand, with periods ranging from 120 to 180 days.
GROUP
2018
($000)
2017
($000)
Cash at Bank 5,242 6,564
Short Term Deposits 11,000 8,000
Total Cash, Cash Equivalents and Short Term Deposits 16,242 14,564
NZD 14,251 13,857
AUD 12 59
USD 1,941 612
EUR 7 2
SGD 31 34
Total Cash, Cash Equivalents and Short Term Deposits 16,242 14,564
Interest on the bank balances ranges from 0% to 3.58% (2017: 0% to 3.45%) per annum. Funds held on term
deposit with the Bank of New Zealand can be accessed with one month’s notice at the request of the authorised
bank signatories of Pacific Edge Ltd.
Notes to the Financial Statements
For the year ended 31 March 2018
Notes to the Financial Statements
For the year ended 31 March 2018

PACIFIC EDGE LIMITED ANNUAL REPORT 2018PACIFIC EDGE LIMITED ANNUAL REPORT 2018
5554
12. RECEIVABLES
ACCOUNTING POLICY
Receivables are initially measured at fair value and subsequently measured at amortised cost using the effective
interest method, less any provision for impairment. A provision for impairment of receivables is established when
there is objective evidence that the Group will not be able to collect all amounts due according to the original
terms of the receivables. Significant financial difficulties of the debtor, probability that the debtor will enter
bankruptcy or financial reorganisation, and default or delinquency in payments (more than 30 days overdue) are
considered indicators that the trade receivable is impaired. The amount of the provision is the difference between
the asset’s carrying amount and the present value of estimated future cash flows, discounted using the original
effective interest rate.
GROUP
2018
($000)
2017
($000)
RESTATED
Trade Receivables 39 145
Sundry Debtors 862 475
Accrued Interest 117 1
GST/BAS Refund Due 46 42
Total Receivables 1,064 663
There is no provision for impairment relating to the revenue from Cxbladder sales. All outstanding sales are current
and there are no indications that these amounts will not be paid.
Sundry debtors include accruals for grants and rebates that have not yet been paid. These are expected to be paid
once the relevant claims have been submitted. The Company has met all conditions of the claims and there is no
indication that there is impairment of these balances.
Amounts overdue but not impaired are as follows:
- $39,000 is within 0 – 180 days old (2017: $145,000)
- No amounts within Trade Receivables are over 180 days old (2017: Nil)
The foreign currency split of the amounts above is:
2018
($000)
2017
($000)
NZD 479 454
AUD 585 209
Total Receivables 1,064 663
13. INVENTORY
ACCOUNTING POLICY
Inventories are stated at the lower of cost and net realisable value. Cost is determined using the weighted average
formula.
GROUP
2018
($000)
2017
($000)
Laboratory Supplies 752 824
Total Inventory 752 824
The major items of Inventory are laboratory reagents, chemicals and Cxbladder urine sampling systems.
Laboratory supplies used during the year of $3,115,000 (2017: $2,078,000) are included within the Statement of
Comprehensive Income in Laboratory Operations and Research.
14. OTHER ASSETS
GROUP
2018
($000)
2017
($000)
Prepayments 315 330
Security Deposits 157 160
Total Other Assets 472 490
Prepayments are largely made up of insurance, subscriptions and travel not yet expired. Security deposits are paid
to secure properties for lease in United States and Singapore and to secure credit cards in the United States.
Notes to the Financial Statements
For the year ended 31 March 2018
Notes to the Financial Statements
For the year ended 31 March 2018

PACIFIC EDGE LIMITED ANNUAL REPORT 2018PACIFIC EDGE LIMITED ANNUAL REPORT 2018
5756
15. PROPERTY, PLANT & EQUIPMENT
ACCOUNTING POLICY
Property, Plant and Equipment are those assets held by the Group for the purpose of carrying on its business
activities on an ongoing basis. All Property, Plant and Equipment is stated at cost less subsequent accumulated
depreciation and any accumulated impairment losses. The cost of purchased assets includes the original purchase
consideration given to acquire the assets, and the value of other directly attributable costs that have been
incurred in bringing the assets to the location and condition necessary for their intended service. This includes the
laboratory equipment for the establishment of the laboratories.
Gains and losses on disposals are determined by comparing the net proceeds with the carrying amount and are
recognised within the Statement of Comprehensive Income when they occur.
Depreciation
Depreciation of plant and equipment is based on writing off the assets over their useful lives, using the straight line
(SL) and diminishing value (DV) basis.
Main rates used are:
Plant and Laboratory Equipment 5% to 40% DV
Computer Equipment 5% to 60% DV
Leasehold Improvements 10% SL
Furniture and Fittings 5% to 25% DV
The assets’ useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
Reclassification
Property, Plant and Equipment has been reclassified so that categories better reflect the nature of the assets.
Laboratory Equipment and Plant & Equipment have been combined in the new category Plant and Laboratory
Equipment. Office Equipment that was not Computer Equipment has been transferred to Furniture and Fittings.

Plant &
Laboratory
Equipment
($000)
Computer
Equipment
($000)
Leasehold
Improvements
($000)
Furniture
& Fittings
($000)
Total
($000)
Cost
Balance at 1 April 2016 2,373 763 210 358 3,704
Additions 41 93 65 9 208
Disposals (7) (3) (1) (2) (13)
Foreign Translation Difference - - - - -
Balance at 31 March 2017 2,407 853 274 365 3,899
Balance at 1 April 2017 2,407 853 274 365 3,899
Additions 312 40 - 1 353
Disposals (534) (254) - (45) (833)
Foreign Translation Difference (20) (8) (4) (5) (37)
Balance at 31 March 2018 2,165 631 270 316 3,382
Accumulated Depreciation
Balance at 1 April 2016 1,896 584 51 183 2,714
Depreciation Expense 196 94 24 38 352
Disposals - - - - -
Foreign Translation Difference (3) (1) - - (4)
Balance at 31 March 2017 2,089 677 75 221 3,062
Balance at 1 April 2017 2,089 677 75 221 3,062
Depreciation Expense 175 82 23 36 316
Disposals (529) (250) - (44) (823)
Foreign Translation Difference (18) (5) (1) (3) (27)
Balance at 31 March 2018 1,717 504 97 210 2,528
Carrying Amounts
At 1 April 2016 477 179 159 175 990
At 31 March 2017 318 176 199 144 837
At 31 March 2018 448 127 173 106 854
During the year a review of the fixed asset registers for the Group was undertaken. A number of assets of no book
value or very low book value were written off explaining the number of disposals for the year ended 31 March 2018.
Leased Fixed Assets
Plant and Laboratory Equipment includes the following amounts where the Group is a lessee under a finance lease
(refer to Note 25 for further details):
GROUP
2018
($000)
2017
($000)
Cost 229 -
Accumulated Depreciation (35)-
Minimum Lease Payments 194 -
Notes to the Financial Statements
For the year ended 31 March 2018
Notes to the Financial Statements
For the year ended 31 March 2018

PACIFIC EDGE LIMITED ANNUAL REPORT 2018PACIFIC EDGE LIMITED ANNUAL REPORT 2018
5958
16. INTANGIBLE ASSETS
ACCOUNTING POLICY
Intellectual Property
The costs of acquired Intellectual Property are recognised at cost and amortised over its anticipated useful
life, which is currently assessed at 1 to 20 years. All Intellectual Property has a finite life. The carrying value of
Intellectual Property is reviewed for impairment, where indicators of impairment exist.
The following costs associated with Intellectual Property are expensed as incurred during the research phases of
a project and are only capitalised when incurred as part of the development phase of a process or product within
development assets: Internal Intellectual Property costs including the costs of patents and patent application.
Software Development Costs
Costs associated with the development of software are held at cost and amortised over their useful lives of
between 2-10 years.
Cxblader Development Costs
Costs associated with the development of Cxbladder products are held at cost and amortised over their useful lives
of 20 years.
Amortisation of Intangible Assets
• Patents – Amortisation is charged on a diminishing value basis over the estimated useful life of the
intangible assets (1-20 years). The estimated useful life and amortisation method is reviewed at the end of
each reporting period.
• Software development costs - Amortisation is charged on a diminishing value basis over the estimated
useful life of the intangible assets (2-10 years). The estimated useful life and amortisation method is
reviewed at the end of each reporting period.
• Cxbladder development costs - Amortisation is charged on a diminishing value basis over the estimated
useful life of the intangible assets (20 years). The estimated useful life and amortisation method is
reviewed at the end of each reporting period.
Software
Development
Costs
($000)
Patents
($000)
Cxbladder
Development
Costs
($000)
Total
($000)
Cost
Balance at 1 April 2016 493 149 33 675
Additions 207 64 - 271
Foreign Translation Difference - - - -
Balance at 31 March 2017 700 213 33 946
Balance at 1 April 2017 700 213 33 946
Additions 99 40 - 139
Disposals - - - -
Foreign Translation Difference (1) - - (1)
Balance at 31 March 2018 798 253 33 1,084
Accumulated Amortisation
Balance at 1 April 2016 317 100 11 428
Amortisation Expense 146 42 - 188
Foreign Translation Difference2 - (1) 1
Balance at 31 March 2017 465 142 10 617
Balance at 1 April 2017 465 142 10 617
Amortisation Expense 144 42 2 188
Foreign Translation Difference (2) - - (2)
Balance at 31 March 2018 607 184 12 803
Carrying Amounts
At 1 April 2016 176 49 22 247
At 31 March 2017 235 71 23 329
At 31 March 2018 191 69 21 281
Notes to the Financial Statements
For the year ended 31 March 2018
Notes to the Financial Statements
For the year ended 31 March 2018

PACIFIC EDGE LIMITED ANNUAL REPORT 2018PACIFIC EDGE LIMITED ANNUAL REPORT 2018
6160
17. 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 detection 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 changes made to internal reporting.
The results shown below differ from those reported to the Chief Executive Officer during the 2017 and 2018
financial years, due to the adoption of NZ IFRS 15 at the end of the 2018 financial year. The segment information
has been updated to reflect the new reporting standard and to agree to the reported financial statements under
NZ IFRS 15.
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 segment described above, for the year
ended 31 March 2018, is shown below.
2018
Commercial
($000)
Research
($000)
Less:
Eliminations
($000)
Total
($000)
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) 24,142
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)
Net Cash Flows to Operating Activities(14,072)(4,028)-(18,100)
2017
Commercial
($000)
RESTATED
Research
($000)
RESTATED
Less:
Eliminations
($000)
RESTATED
Total
($000)
RESTATED
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 13,733 (3,094) 26,727
Depreciation and Amortisation 227 313 - 540
Total Operating Expenses 16,315 14,046 (3,094) 27,267
Loss Before Tax (12,869) (9,717)- (22,586)
Net Cash Flows to Operating Activities(12,176)(5,661)-(17,837)
Eliminations
These are the intercompany transactions between the subsidiaries and the Parent. These are eliminated on
consolidation of Group results.
Total Laboratory Throughput
Commercial
(#tests)
Research
(#tests)
Total
(#tests)
201811,8662,58214,448
20178,2972,94911,246
Segment Assets and Liabilities Information
2018
Commercial
($000)
Research
($000)
Total
($000)
Total Assets 1,977 17,688 19,665
Total Liabilities 1,917 1,108 3,025

2017
Commercial
($000)
RESTATED
Research
($000)
RESTATED
Total
($000)
RESTATED
Total Assets 2,110 15,597 17,707
Total Liabilities 1,419 1,315 2,734
Notes to the Financial Statements
For the year ended 31 March 2018
Notes to the Financial Statements
For the year ended 31 March 2018

PACIFIC EDGE LIMITED ANNUAL REPORT 2018PACIFIC EDGE LIMITED ANNUAL REPORT 2018
6362
Additions to non current assets include:
Commercial
($000)
Research
($000)
Total
($000)
Property, Plant & Equipment236117353
Intangible Assets-139139
Total Additions to Non Current Assets236256492
There are three external revenue customers who individually represent greater than 10% of the total trade
receivables balance. As trade receivables totals $39,000 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. Post adoption of NZ IFRS 15, 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.
18. INCOME TAX
ACCOUNTING POLICY
The tax expense for the period comprises current and deferred tax. Tax is recognised in the Statement of
Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income
or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity,
respectively.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the
balance sheet date in the countries where the Company and its subsidiaries operate and generate taxable income.
Management periodically evaluates positions taken in tax returns with respect to situations in which applicable
tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts
expected to be paid to the tax authorities.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the
tax bases of assets and liabilities and their carrying amounts in the financial statements in accordance with NZ
IAS 12. Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be
available against which the temporary differences can be utilised.
Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by
the balance sheet date and are expected to apply when the related deferred income tax asset is realised or the
deferred income tax liability is settled.
The Company and Group has incurred an operating loss for the 2018 financial year and no income tax is payable.
Notes to the Financial Statements
For the year ended 31 March 2018
GROUP
2018
($000)
2017
($000)
Income tax recognised in the profit or loss:
Current tax expense- -
Adjustments to current tax in respect to prior years- 225
Benefit from previously unrecognised tax losses- (225)
Deferred tax in respect of the current year (2,918) (6,607)
Adjustments to deferred tax in respect to prior years (441) 92
Deferred tax assets not recognised 3,359 6,515
Income tax expense- -

The prima facie income tax on pre-tax accounting
profit from operations reconciles to:
Accounting loss before income tax (19,645) (22,586)
At the statutory income tax rate of 28% (5,501) (6,324)
Permanent differences - Non-deductible expenditure 1,730 570
Difference in US and Australian income tax rates 853 (628)
Prior period adjustment (441) 92
Tax losses utilised- (225)
Deferred tax assets not recognised 3,359 6,515
Income tax expense reported in Income Statement- -
Tax Losses
The group has losses to carry forward of approximately $54,700,000 (2017: $42,800,000) with a potential tax
benefit of $12,600,000 (2017: $14,000,000). The tax losses are split between the following jurisdictions (shown in
NZD): New Zealand $9,000,000 (tax effect of $3,000,000 (at 28%)), Australia $200,000 (tax effect of $100,000
(at 30%)), Singapore $500,000 (tax effect of $100,000 (at 17%)) and the United States $44,600,000 (tax effect of
$9,400,000 (at 21%)). The United States corporate tax rate reduced to 21% effective 1 January 2018 which results in
a reduction of $4,300,000 in potential future tax benefits from the previous corporate tax rate of 34%. Tax losses
are available to be carried forward and offset against future taxable income subject to the various conditions
required by income tax legislation being complied with.
Deferred Research and Development Tax Expenditure
The Group also has deferred research and development tax expenditure of $35,600,000
(2017: $34,300,000) to carry forward and claim for income tax purposes in New Zealand in the future. This has a
tax effect of $10,000,000 (2017: $9,600,000). The deferred research and development tax expenditure can either
be carried forward and offset against future income arising from the research and development, or subject to
meeting the shareholder continuity requirements can be offset against future taxable income.
Deferred Tax Assets
The Group does not recognise a deferred tax asset in the Statement of Financial Position.
Imputation Credit Account
The Group has imputation credits of Nil (2017: Nil).
Notes to the Financial Statements
For the year ended 31 March 2018

PACIFIC EDGE LIMITED ANNUAL REPORT 2018PACIFIC EDGE LIMITED ANNUAL REPORT 2018
6564
Tax Reform
United States
During the year there were a number of changes made in relation to corporate tax in the United States. Pacific
Edge Diagnostics USA Ltd has significant losses to utilise, therefore management does not expect a significant
change as a result, but has not yet performed a full assessment. The federal corporate tax rate has reduced to 21%
from 1 January 2018. This has been reflected in the calculations above.
New Zealand
There have been changes made to the way employee share schemes are taxed. This is not expected to have a
significant impact on the Group however the Group has not yet performed a full assessment.
In addition to the above, there are proposed changes to the way Callaghan Growth Grants and Research and
Development tax credits are allocated from 2019. Once there is certainty around the proposed changes, the Group
will perform a full assessment on the impact of them.
Notes to the Financial Statements
For the year ended 31 March 2018
Notes to the Financial Statements
For the year ended 31 March 2018
19. PAYABLES AND ACCRUALS
ACCOUNTING POLICY
Trade and Other Payables Due Within One Year
Trade payables are recognised at the value of the invoice received from a supplier. The carrying value of trade
payables is considered to be approximate fair value as amounts are unsecured and are usually paid by the 30th of
the month following recognition.
GROUP
2018
($000)
2017
($000)
Trade Creditors 665 838
Accrued Expenses 610 532
Employee Entitlements (refer below) 1,651 1,364
Total Payables and Accruals 2,926 2,734
Payables and accruals are non-interest bearing and are normally settled on 30 day terms. Therefore their carrying
value approximates their fair value.
The foreign currently split for Payables and Accruals is:
GROUP
2018
($000)
2017
($000)
NZD 1,167 1,367
AUD 17 41
USD 1,695 1,314
SGD 47 12
2,926 2,734
Employee Entitlements
Employee entitlements are measured at values based on accrued entitlements at current rates of pay. These
include salaries and wages accrued up to balance date and annual leave earned to, but not yet taken at balance
date.
GROUP
2018
($000)
2017
($000)
Income Tax 50 51
Holiday Pay 440 290
Accrued Wages 1,161 1,023
Total Employee Entitlements 1,651 1,364

PACIFIC EDGE LIMITED ANNUAL REPORT 2018PACIFIC EDGE LIMITED ANNUAL REPORT 2018
6766
20. SHARE CAPITAL
ACCOUNTING POLICY
Ordinary shares are described as equity.
Issue expenses, including commission paid, relating to the issue of ordinary share capital, have been written off
against the issued share price received and recorded in the Statement of Changes in Equity.
Equity-settled share-based payments to employees and others providing services are measured at the fair value
of the equity instruments at the grant date. Details regarding the determination of the fair value of equity-settled
share based transactions are set out in Note 10.
GROUP
2018
($000)
2017
($000)
Ordinary Shares 131,824 111,596
Total Share Capital 131,824 111,596
All fully paid shares in the Company have equal voting rights and equal rights to dividends. All Ordinary Shares are
fully paid and have no par value.
Share Capital Group
Notes
2018 Shares
(000)
2018
($000)
2017 Shares
(000)
2017
($000)
Opening Balance 399,271 111,596 376,543 100,012
Issue of Ordinary Shares - Rights
Issue and Direct Offers
1
66,617 21,318 17,500 8,750
Issue of Ordinary Shares - Exercise
of share options
2
260 112 - -
Issue of Ordinary Shares - Employ-
ee Remuneration
3
174 96 33 -
Issue of Ordinary Shares - Equity
Equivalent Scheme Redemption
4
8
- - 5,195 2,925
Less: Issue Expenses - (1,298) - (91)
Movement 67,051 20,228 22,728 11,584
Closing Balance 466,322 131,824 399,271 111,596
1) During the period 66,617,400 shares were issued under a 1 for 6 shareholder rights issue at a price
of $0.32 per share. (2017: 17,500,000 shares were issued at an average price of $0.50 per share)
2) During the period 259,585 share options were exercised at a price of $0.36 per share
3) During the period 173,655 shares were issued as part of employees remuneration in lieu of cash payments at
a price of $0.46 per share. (2017: 33,100 shares were issued at an average price of $0.48 per share.
The associated cost has been accounted for in the 2018 year)
4) During the prior period 5,194,583 shares were issued under an Employee Equivalent Equity Scheme at an
average price of $0.56 per share
21. FOREIGN CURRENCY
ACCOUNTING POLICIES
Foreign Currency Transactions
The individual financial statements of the Group are presented in the currency of the primary economic
environment in which the entity operates (its functional currency). For the purpose of the Group financial
statements, the results and financial position of the Group entity are expressed in New Zealand dollars (‘NZ$’),
which is the functional currency of the Parent and the presentation currency for the Group financial statements.
In preparing the financial statements of the individual entities, transactions in currencies other than the entity’s
functional currency (foreign currencies) are recorded at the rates of exchange prevailing at the dates of the
transactions. At the end of each reporting period, monetary items denominated in foreign currencies are
retranslated at the rates prevailing at the end of the reporting period. Non monetary items denominated in foreign
currencies are translated at the rates prevailing on the date the transaction occurs.
Exchange differences are recognised in the Statement of Comprehensive Income in the period in which they arise.
Foreign Operations
For the purpose of presenting the Group financial statements, the assets and liabilities of the Group’s foreign
operations are expressed in New Zealand dollars using exchange rates prevailing at the end of the reporting
period. Income and expense items are translated at the average exchange rates for the period, unless exchange
rates fluctuated significantly during that period, in which case the exchange rates at the dates of the transactions
are used. Exchange differences arising, if any, are recognised in other comprehensive income and accumulated as
a separate component of equity in the Group’s foreign currency translation reserve. Such exchange differences
are reclassified from equity to profit or loss (as a reclassification adjustment) in the period in which the foreign
operation is disposed of.
Foreign Currency Translation Reserve
Exchange differences relating to the translation from the functional currencies of the Group’s foreign subsidiaries
into New Zealand dollars are brought to account by entries made directly to the Foreign Currency Translation
Reserve.
Notes to the Financial Statements
For the year ended 31 March 2018
Notes to the Financial Statements
For the year ended 31 March 2018

PACIFIC EDGE LIMITED ANNUAL REPORT 2018PACIFIC EDGE LIMITED ANNUAL REPORT 2018
6968
22. RECONCILIATION OF CASH USED FROM OPERATING ACTIVITIES WITH OPERATING NET LOSS
GROUP
2018
($000)
2017
$000
RESTATED
Net Loss for the Period (19,644) (22,586)

Add Non Cash Items:
Depreciation 316 352
Loss on Disposal of Property, Plant and Equipment 10 -
Amortisation 188 188
Employee Share Options 1,184 485
Issue of Employee Incentive Scheme Shares- 2,925
Employee Bonuses Paid in Shares in Lieu of Cash 96 -
Effect of Exchange Rates (131) (93)
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 192 210
Total Movement in Other Working Capital (119) 892

Net Cash Flows to Operating Activities (18,100) (17,837)
23. FINANCIAL INSTRUMENTS
ACCOUNTING POLICIES
Financial instruments include cash and cash equivalents, short term deposits, receivables, security deposits, finance
lease liabilities and trade creditors. The particular recognition methods adopted are disclosed in the individual
policy statements associated with each item.
Managing Financial Risk
The Group’s activities expose it to the financial risks of changes in interest rate risk, credit risk, liquidity risk and
foreign currency risk.
Management is of the opinion that the Company and Group’s exposure to market risk during the period and at
balance date is defined as:
Risk FactorDescription
(i) Currency riskFinancial assets and financial liabilities are denominated in NZD, USD, AUD, and EUR
currencies.
(ii) Interest rate risk Exposure to changes in Bank interest rates resulting in cashflow interest rate risk
(iii) Other price riskNot applicable as no securities are bought, sold or traded
(i) Foreign Currency Risk
The Group faces the risk of movements in foreign currency exchange rates in relation to the New Zealand dollar.
The Group has significant operations in United States Dollars and less significant operations in Australian dollars
and Singapore dollars. As a result of this, the financial performance and financial position are impacted by
movements in exchange rates.
The Group manages foreign currency risk by purchasing overseas goods only when necessary and when foreign
exchanges are favourable. It will also purchase foreign currency to fund overseas operations based on cash flow
forecasts where it can maximise value. There are no formal foreign currency hedges entered into.
Balances in AUD and EUR currencies are not significant. A 10% increase or decrease in USD against the NZD will
reduce/increase the loss reported by approximately $37,000 (2017: ($16,000)) respectively and increase/reduce
equity by the same amount.
(ii) Interest Rate Risk
The Group’s interest rate risk arises from its cash and equivalents, and short term deposits. Cash and equivalents
comprise cash on hand and deposits at call with banks. Short term deposits comprise of term deposits placed with
New Zealand banks on fixed rates for different periods of time.
Management regularly review its banking arrangements to ensure it achieves the best returns on its funds while
maintaining access to necessary liquidity levels to service the Group’s day-to-day activities. The mixture of bank
deposits at floating interest rates and short term deposits at different rates over various periods of time mitigate
the risk of interest rates being received at less than market rates. The Group does not enter into interest rate
hedges.
A 1% increase or decrease in Bank deposit interest rates will reduce/increase the loss reported by approximately
$138,000 and increase/reduce equity by the same amount (2017: $183,000).
Credit Risk
The Group incurs credit risk from
a) Cash and short term deposits;
b) Receivables in the normal course of its business;
c) Other assets.
The Group has no significant concentration of credit risk other than bank deposits with 63.96% of total assets
at the Bank of New Zealand, 3.61% at ANZ Bank and 12.72% at Heartland Bank. The Group’s cash and short term
deposits are placed with high credit quality financial institutions including major banks who have at least a BBB
credit rating.
Regular monitoring of receivables is undertaken to ensure that the credit exposure remains within the Group’s
normal terms of trade. These receivables balances mainly relate to New Zealand customers, Callaghan Innovation
and the Australian Government.
While there are no trade receivables recognised for US customers, the Group continues to invoice for every billable
test completed in the US, and the billing and reimbursement process continues to maximise the cash that is
received by the Group.
Regular monitoring of other assets is undertaken to ensure that the credit exposure is limited. This is firstly done
by determining the credit risk before making security deposits on leased properties and ensuring we do not pay
suppliers in advance where there is uncertainty in relation to their credit worthiness.
Notes to the Financial Statements
For the year ended 31 March 2018
Notes to the Financial Statements
For the year ended 31 March 2018

PACIFIC EDGE LIMITED ANNUAL REPORT 2018PACIFIC EDGE LIMITED ANNUAL REPORT 2018
7170
The carrying values of financial assets represent the maximum exposure to credit risk as represented below:
Notes
2018
($000)
2017
($000)
Cash and cash equivalents
11
5,242 6,564
Short term deposits
11
11,000 8,000
Trade and other receivables (excludes GST/BAS)
12
1,018 621
Other assets (excludes prepayments)
14
157 161
17,417 15,346
Liquidity Risk
Liquidity risk is the risk that the Group may encounter difficulty in raising funds at short notice to meet its
commitments as they fall due. Management maintains sufficient cash balances and uses cash flow forecasts to
determine future cash flow requirements. The Group does not have any external loans, but does have three finance
leases.
Payables and Accruals totalling $2,292,000 are due within 3 months of balance date (2017: $2,734,000).
Fair Values
In the opinion of the directors, the carrying amount of financial assets and financial liabilities approximate their fair
values at balance date.
24. RELATED PARTIES
The Group paid consultancy fees for accounting services to CJS Business Advisors Limited in the prior period. CJ
Swann was a director until 25 August 2016, and is a shareholder of the Company. The fees charged were on normal
terms and conditions and totalled $NIL (2017: $6,000). At balance date nothing was outstanding relative to these
transactions (2017: Nil).
A shareholder, the University of Otago, provided services, including rental space and car parking, to the Group to
the value of $264,000 (2017: $297,000). As at 31 March 2018 the Group commitment for the next financial year is
$194,000 (2017: $194,000).
Refer to Notes 8 and 10 for details of the Incentive Plan that includes key management remuneration.
Key management personnel comprise of Directors and the Chief Executive Officers of Pacific Edge Limited and
Pacific Edge Diagnostics USA Limited. A close personal relation of a member of key management personnel is
employed by the Company on the same terms as other comparable employees.
Key management compensation was as follows:
GROUP
Notes
2018
($000)
2017
($000)
Salaries and Other Short Term Employee Benefits 1,315 1,302
Share Options Benefits 635 240
Share Issue Expense: Employee Equity Equivalent
Incentive Scheme
8
- 1,131
Total Benefits 1,950 2,673
Directors Fees
The current total Directors’ fee pool for the non-executive Directors of Pacific Edge Limited, approved by the
shareholders at the Special Shareholders’ Meeting on the 26th of February 2016 is $275,000 per annum, which is
the total amount of fees paid to Directors for the year ended 31 March 2018.
The table below sets out the fees payable to the non-executive Directors of Pacific Edge Limited for the year
ended 31 March 2018 based on the positions held:
PositionFees Payable
Chair$75,000
Deputy Chair$43,000
US Based Director$77,000
Board Member$40,000
25. FINANCE AND OPERATING LEASE COMMITMENTS
ACCOUNTING POLICY
Leases of property, plant and equipment where the group, as lessee, has substantially all the risks and rewards of
ownership are classified as finance leases. Finance leases are capitalised at the lease’s inception at the fair value
of the leased property or, if lower, the present value of the minimum lease payments. The corresponding rental
obligations, net of finance charges, are included in other short-term and long-term payables. Each lease payment
is allocated between the liability and finance cost. The finance cost is charged to the profit or loss over the lease
period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.
The property, plant and equipment acquired under finance leases is depreciated over the asset’s useful life, or over
the shorter of the asset’s useful life and the lease term if there is no reasonable certainty that the group will obtain
ownership at the end of the lease term.
Leases in which a significant portion of the risks and rewards of ownership are not transferred to the group as
lessee are classified as operating leases. Payments made under operating leases (net of any incentives received
from the lessor) are charged to profit or loss on a straight-line basis over the period of the lease.
Notes to the Financial Statements
For the year ended 31 March 2018
Notes to the Financial Statements
For the year ended 31 March 2018

PACIFIC EDGE LIMITED ANNUAL REPORT 2018PACIFIC EDGE LIMITED ANNUAL REPORT 2018
7372
a) Finance Lease Obligations
GROUP
2018
($000)
2017
($000)
Commitments in relation to finance leases are payable as
follows:
Within one year 78 -
Later than one year but not later than five years 26 -
Later than five years- -
Minimum Lease Payments 104 -
Future finance charges (5) -
Recognised as a liability 99 -
The present value of finance lease liabilities is as follows:
Within one year 73 -
Later than one year but not later than five years 26 -
Later than five years - -
Minimum Lease Payments 99 -
Included in the financial statements as:
Current borrowings 73 -
Non-current borrowings 26 -
Minimum Lease Payments 99 -
b) Leasing Arrangements
The Group leases various plant and laboratory equipment with a carrying amount of $194,000 (2017: not applicable)
under finance leases expiring within one to two years. Under the terms of the leases, the group has the option to
acquire the leased assets for low or no cost on expiry of the leases.
The Interest rates underlying all obligations under finance leases are fixed at respective contract dates ranging from
5.2% to 9.4% (2017: not applicable) per annum.
c) Operating Lease Obligations
The Group has the following lease commitment for buildings and equipment:
GROUP
2018
($000)
2017
($000)
Non cancellable operating lease commitments within one year9571,161
Later than one year, not later than five years1,2402,259
Over five years--
Total Lease Commitments2,1973,420
The major commitments included in the total lease commitments above are:
GROUP
2018
($000)
2017
($000)
Lease of premises from the University of Otago194194
Pacific Edge Diagnostics USA lease1,9042,732
Pacific Edge Diagnostics Singapore Pte. Ltd lease4850
Other51444
2,1973,420
The lease of premises (in the Centre for Innovation) with the University of Otago includes rights of renewal to lease
the premises to May 2023.
Pacific Edge Diagnostics USA Limited has extended its lease by 3 years to 30 November 2020. The total financial
commitment shown above includes an Allowance Reimbursement which is payable to the landlord on a monthly
basis.
Pacific Edge Diagnostics Singapore Pte. Ltd has negotiated a new lease for office space which commences in June
2018.
26. OTHER COMMITMENTS AND CONTINGENT LIABILITIES
a) Capital Commitments
There are no capital commitments for the Group at 31 March 2018 (2017: Nil).
b) Contingent Liabilities
There were no known contingent liabilities at 31 March 2018 (2017: Nil). The Group has not granted any securities in
respect of liabilities payable by any other party whatsoever.
27. SUBSEQUENT EVENTS
There are no subsequent events.
Notes to the Financial Statements
For the year ended 31 March 2018
Notes to the Financial Statements
For the year ended 31 March 2018

PricewaterhouseCoopers, Westpac Building, 106 George Street, PO Box 5848, Dunedin 9058, New Zealand
T: +64 3 470 3600, F: +64 3 470 3601, pwc.co.nz
Independent auditor’s report
To the shareholders of Pacific Edge Limited
The financial statements comprise:
the balance sheet as at 31 March 2018;
the statement of comprehensive income for the year then ended;
the statement of changes in equity for the year then ended;
the statement of cash flows for the year then ended; and
the notes to the financial statements, which include a summary of accounting policies.
Our opinion
In our opinion, the financial statements of Pacific Edge Limited (the Company), including its
subsidiaries (the Group), present fairly, in all material respects, the financial position of the Group as
at 31 March 2018, its financial performance and its cash flows for the year then ended in accordance
with New Zealand Equivalents to International Financial Reporting Standards (NZ IFRS) and
International Financial Reporting Standards (IFRS).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs
NZ) and International Standards on Auditing (ISAs). Our responsibilities under those standards are
further described in theAuditor’s responsibilities for the audit of the consolidated financial
statementssection of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
We are independent of the Group in accordance with Professional and Ethical Standard 1 (Revised)
Code of Ethics for Assurance Practitioners(PES 1) issued by the New Zealand Auditing and Assurance
Standards Board and the International Ethics Standards Board for Accountants’Code of Ethics for
Professional Accountants(IESBA Code), and we have fulfilled our other ethical responsibilities in
accordance with these requirements.
Our firm carries out other services for the Group in the areas of review of the Callaghan Innovation
Growth Grant claim, half year review procedures and agreed upon procedures over testing
spreadsheet formulas. The provision of these other services has not impaired our independence as
auditor of the Group.
Material Uncertainty Related to Going Concern
We draw attention to the disclosures in Note 1 to the financial statements, which indicates that the
ability of the Group to continue in operation is dependent on its ability to generate sufficient positive
cash flows from operations, manage costs, or obtain additional funding. As also discussed in Note 1,
achieving the forecast revenues that support the cash flow forecasts is reliant on the success of the
commercial negotiations with targeted large scale health organisations. These conditions indicate the
existence of a material uncertainty that may cast significant doubt about the Group’s ability to
continue as a going concern. Our opinion is not modified in respect of this matter.
PwC
Our audit approach
Overview
An audit is designed to obtain reasonable assurance whether the financial
statements are free from material misstatement.
Overall Group materiality: $246,500 which represents 1% of total operating
expenses.
We chose total expenses as the benchmark because, in our view, it is the
benchmark against which the performance of the Group is most
appropriately measured by users.
We have determined that there is one key audit matter:
Adoption of NZ IFRS 15 Revenue from Contracts with Customers
Materiality
The scope of our audit was influenced by our application of materiality.
Based on our professional judgement, we determined certain quantitative thresholds for materiality,
including the overall Group materiality for the consolidated financial statements as a whole as set out
above. These, together with qualitative considerations, helped us to determine the scope of our audit,
the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both
individually and in aggregate on the consolidated financial statements as a whole.
Audit scope
We designed our audit by assessing the risks of material misstatement in the consolidated financial
statements and our application of materiality. As in all of our audits, we also addressed the risk of
management override of internal controls including among other matters, consideration of whether
there was evidence of bias that represented a risk of material misstatement due to fraud.
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an
opinion on the consolidated financial statements as a whole, taking into account the structure of the
Group, the accounting processes and controls, and the industry in which the Group operates.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the consolidated financial statements of the current year. These matters were addressed in
the context of our audit of the consolidated financial statements as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters.
PricewaterhouseCoopers, Westpac Building, 106 George Street, PO Box 5848, Dunedin 9058, New Zealand
T: +64 3 470 3600, F: +64 3 470 3601, pwc.co.nz
Independent auditor’s report
To the shareholders of Pacific Edge Limited
The financial statements comprise:
the balance sheet as at 31 March 2018;
the statement of comprehensive income for the year then ended;
the statement of changes in equity for the year then ended;
the statement of cash flows for the year then ended; and
the notes to the financial statements, which include a summary of accounting policies.
Our opinion
In our opinion, the financial statements of Pacific Edge Limited (the Company), including its
subsidiaries (the Group), present fairly, in all material respects, the financial position of the Group as
at 31 March 2018, its financial performance and its cash flows for the year then ended in accordance
with New Zealand Equivalents to International Financial Reporting Standards (NZ IFRS) and
International Financial Reporting Standards (IFRS).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs
NZ) and International Standards on Auditing (ISAs). Our responsibilities under those standards are
further described in theAuditor’s responsibilities for the audit of the consolidated financial
statementssection of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
We are independent of the Group in accordance with Professional and Ethical Standard 1 (Revised)
Code of Ethics for Assurance Practitioners(PES 1) issued by the New Zealand Auditing and Assurance
Standards Board and the International Ethics Standards Board for Accountants’Code of Ethics for
Professional Accountants(IESBA Code), and we have fulfilled our other ethical responsibilities in
accordance with these requirements.
Our firm carries out other services for the Group in the areas of review of the Callaghan Innovation
Growth Grant claim, half year review procedures and agreed upon procedures over testing
spreadsheet formulas. The provision of these other services has not impaired our independence as
auditor of the Group.
Material Uncertainty Related to Going Concern
We draw attention to the disclosures in Note 1 to the financial statements, which indicates that the
ability of the Group to continue in operation is dependent on its ability to generate sufficient positive
cash flows from operations, manage costs, or obtain additional funding. As also discussed in Note 1,
achieving the forecast revenues that support the cash flow forecasts is reliant on the success of the
commercial negotiations with targeted large scale health organisations. These conditions indicate the
existence of a material uncertainty that may cast significant doubt about the Group’s ability to
continue as a going concern. Our opinion is not modified in respect of this matter.



Materiality
Audit
scope
Key audit
matters
Our audit approach
Overview

An audit is designed to obtain reasonable assurance whether the financial
statements are free from material misstatement.

Overall group materiality: $750,000, which represents 4% of loss before tax.

We chose loss before tax as the benchmark because, in our view, it is the
benchmark against which the performance of the Group is most commonly
measured by users, and is a generally accepted benchmark.

Our key audit matter is the Gross Recoverable Revenue (‘GRR’) for US derived
revenue.
Materiality
The scope of our audit was influenced by our application of materiality.
Based on our professional judgement, we determined certain quantitative thresholds for materiality,
including the overall Group materiality for the consolidated financial statements as a whole as set out
above. These, together with qualitative considerations, helped us to determine the scope of our audit,
the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both
individually and in aggregate on the consolidated financial statements as a whole.
Audit scope
We designed our audit by assessing the risks of material misstatement in the consolidated financial
statements and our application of materiality. As in all of our audits, we also addressed the risk of
management override of internal controls including among other matters, consideration of whether
there was evidence of bias that represented a risk of material misstatement due to fraud.
The accounting function for the Group is maintained in New Zealand providing consistent
accounting systems and processes across the jurisdictions the Group operates in. Our audit was
conducted entirely from New Zealand and the scope of our testing covered the transactions of the
entire Group.






Materiality
Audit
scope
Key audit
matters
Our audit approach
Overview

An audit is designed to obtain reasonable assurance whether the financial
statements are free from material misstatement.

Overall group materiality: $750,000, which represents 4% of loss before tax.

We chose loss before tax as the benchmark because, in our view, it is the
benchmark against which the performance of the Group is most commonly
measured by users, and is a generally accepted benchmark.

Our key audit matter is the Gross Recoverable Revenue (‘GRR’) for US derived
revenue.
Materiality
The scope of our audit was influenced by our application of materiality.
Based on our professional judgement, we determined certain quantitative thresholds for materiality,
including the overall Group materiality for the consolidated financial statements as a whole as set out
above. These, together with qualitative considerations, helped us to determine the scope of our audit,
the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both
individually and in aggregate on the consolidated financial statements as a whole.
Audit scope
We designed our audit by assessing the risks of material misstatement in the consolidated financial
statements and our application of materiality. As in all of our audits, we also addressed the risk of
management override of internal controls including among other matters, consideration of whether
there was evidence of bias that represented a risk of material misstatement due to fraud.
The accounting function for the Group is maintained in New Zealand providing consistent
accounting systems and processes across the jurisdictions the Group operates in. Our audit was
conducted entirely from New Zealand and the scope of our testing covered the transactions of the
entire Group.






Materiality
Audit
scope
Key audit
matters
Our audit approach
Overview

An audit is designed to obtain reasonable assurance whether the financial
statements are free from material misstatement.

Overall group materiality: $750,000, which represents 4% of loss before tax.

We chose loss before tax as the benchmark because, in our view, it is the
benchmark against which the performance of the Group is most commonly
measured by users, and is a generally accepted benchmark.

Our key audit matter is the Gross Recoverable Revenue (‘GRR’) for US derived
revenue.
Materiality
The scope of our audit was influenced by our application of materiality.
Based on our professional judgement, we determined certain quantitative thresholds for materiality,
including the overall Group materiality for the consolidated financial statements as a whole as set out
above. These, together with qualitative considerations, helped us to determine the scope of our audit,
the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both
individually and in aggregate on the consolidated financial statements as a whole.
Audit scope
We designed our audit by assessing the risks of material misstatement in the consolidated financial
statements and our application of materiality. As in all of our audits, we also addressed the risk of
management override of internal controls including among other matters, consideration of whether
there was evidence of bias that represented a risk of material misstatement due to fraud.
The accounting function for the Group is maintained in New Zealand providing consistent
accounting systems and processes across the jurisdictions the Group operates in. Our audit was
conducted entirely from New Zealand and the scope of our testing covered the transactions of the
entire Group.



PACIFIC EDGE LIMITED ANNUAL REPORT 2018PACIFIC EDGE LIMITED ANNUAL REPORT 2018
7574

PwC
Information other than the financial statements and auditor’s report
The Directors are responsible for the annual report. Our opinion on the financial statements does not
cover the other information included in the annual report and we do not, and will not express any form
of assurance conclusion on the other information. At the time of our audit, there was no other
information available to us.
Key audit matter
How our audit addressed the key audit
matter
Adoption of NZ IFRS 15 Revenue from
Contracts with Customers
As disclosed in note 2, the Group has adopted NZ
IFRS 15 Revenue from contracts with customers for
the year ended 31 March 2018 with full
retrospective application for the prior year.
The adoption of NZ IFRS 15 required the Directors
to apply significant judgement in determining
whether revenue could be recognised in advance of
the receipt of cash. The outcome of this judgement
has resulted in a material change in the recognition
of revenues in the financial statements for the
current year.
In assessing the impact of NZ IFRS 15, management
prepared an analysis of all revenue transactions and
identified two material revenue streams: Coverage
via Centers for Medicare and Medicaid Services
(CMS); and Private Insurance.
The key judgements adopted by the Directors in
applying NZ IFRS 15 criteria included:
Determining if a contract with the customer
exists;
Determining if the entity can identify the
payment terms for the services;
Determining whether it is probable that the
entity will collect the consideration to
which it is entitled.
Management engaged a third party accounting firm
to assist them in the application of NZ IFRS 15 to its
US based revenue.
Management’s assessment resulted in the
restatement of the 2016 and 2017 balance sheets
and the 2017 statement of comprehensive income.
The impact and restatements have been disclosed in
the impact tables in note 2.
Our audit procedures included the following:
We obtained management’s analysis of the
revenue streams and understood the
identification process and categorisation.
We assessed the third party accounting opinion
obtained by management, including an
assessment of the skills and competence of the
expert engaged.
We evaluated management’s determination of
whether a contract with customers existed by:
We inspected documentation supporting the
contractual process and basis for
engagement of patients (customers) in the
US.
Discussing the process of engaging patients
with NZ and USA based management to
confirm the facts as presented in the
accounting opinion.
Considering the information obtained with
reference to NZ IFRS 15 to challenge
management’s judgements on whether
sufficient evidence existed to meet the
criteria to support a contractual relationship
for recognition of the revenues.
Reviewing the payment terms and the
probability of recovery based on the history
of collections. This included assessing
management’s conclusions on whether it is
probable that the entity will collect the
consideration. Further we visited the Group’s
external billing reimbursement agent,
Quadax to confirm our understanding of the
process.
We recalculated the adjustments arising from
the adoption of NZ IFRS 15, as disclosed in the
impact tables in note 2.
We have no matters to report from the
procedures performed above.
PwC
In connection with our audit of the consolidated financial statements, our responsibility is to read the
other information and, in doing so, consider whether the other information is materially inconsistent
with the consolidated financial statements or our knowledge obtained in the audit, or otherwise
appears to be materially misstated. If, based on the work we have performed on the other information
that we obtained prior to the date of this auditor’s report, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have nothing to report
in this regard.
Responsibilities of the Directors for the consolidated financial statements
The Directors are responsible, on behalf of the Company, for the preparation and fair presentation of
the consolidated financial statements in accordance with NZ IFRS and IFRS, and for such internal
control as the Directors determine is necessary to enable the preparation of consolidated financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the Directors are responsible for assessing the
Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the Directors either intend to liquidate
the Group or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements, as a whole,
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with ISAs NZ and ISAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these consolidated financial statements.
A further description of our responsibilities for the audit of the financial statements is located at the
External Reporting Board’s website at:
https://www.xrb.govt.nz/standards-for-assurance-practitioners/auditors-responsibilities/audit-
report-1/
This description forms part of our auditor’s report.
Who we report to
This report is made solely to the Company’s shareholders, as a body. Our audit work has been
undertaken so that we might state those matters which we are required to state to them in an auditor’s
report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company and the Company’s shareholders, as a body, for our
audit work, for this report or for the opinions we have formed.
The engagement partner on the audit resulting in this independent auditor’s report is Nathan Wylie.
For and on behalf of:
Chartered AccountantsDunedin
29 June 2018



Materiality
Audit
scope
Key audit
matters
Our audit approach
Overview

An audit is designed to obtain reasonable assurance whether the financial
statements are free from material misstatement.

Overall group materiality: $750,000, which represents 4% of loss before tax.

We chose loss before tax as the benchmark because, in our view, it is the
benchmark against which the performance of the Group is most commonly
measured by users, and is a generally accepted benchmark.

Our key audit matter is the Gross Recoverable Revenue (‘GRR’) for US derived
revenue.
Materiality
The scope of our audit was influenced by our application of materiality.
Based on our professional judgement, we determined certain quantitative thresholds for materiality,
including the overall Group materiality for the consolidated financial statements as a whole as set out
above. These, together with qualitative considerations, helped us to determine the scope of our audit,
the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both
individually and in aggregate on the consolidated financial statements as a whole.
Audit scope
We designed our audit by assessing the risks of material misstatement in the consolidated financial
statements and our application of materiality. As in all of our audits, we also addressed the risk of
management override of internal controls including among other matters, consideration of whether
there was evidence of bias that represented a risk of material misstatement due to fraud.
The accounting function for the Group is maintained in New Zealand providing consistent
accounting systems and processes across the jurisdictions the Group operates in. Our audit was
conducted entirely from New Zealand and the scope of our testing covered the transactions of the
entire Group.






Materiality
Audit
scope
Key audit
matters
Our audit approach
Overview

An audit is designed to obtain reasonable assurance whether the financial
statements are free from material misstatement.

Overall group materiality: $750,000, which represents 4% of loss before tax.

We chose loss before tax as the benchmark because, in our view, it is the
benchmark against which the performance of the Group is most commonly
measured by users, and is a generally accepted benchmark.

Our key audit matter is the Gross Recoverable Revenue (‘GRR’) for US derived
revenue.
Materiality
The scope of our audit was influenced by our application of materiality.
Based on our professional judgement, we determined certain quantitative thresholds for materiality,
including the overall Group materiality for the consolidated financial statements as a whole as set out
above. These, together with qualitative considerations, helped us to determine the scope of our audit,
the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both
individually and in aggregate on the consolidated financial statements as a whole.
Audit scope
We designed our audit by assessing the risks of material misstatement in the consolidated financial
statements and our application of materiality. As in all of our audits, we also addressed the risk of
management override of internal controls including among other matters, consideration of whether
there was evidence of bias that represented a risk of material misstatement due to fraud.
The accounting function for the Group is maintained in New Zealand providing consistent
accounting systems and processes across the jurisdictions the Group operates in. Our audit was
conducted entirely from New Zealand and the scope of our testing covered the transactions of the
entire Group.



PACIFIC EDGE LIMITED ANNUAL REPORT 2018PACIFIC EDGE LIMITED ANNUAL REPORT 2018
7776

OVERVIEW
Strong corporate governance is fundamental to the performance of Pacific Edge Limited and the Board is ultimately
responsible for ensuring that the Group maintains high ethical standards and corporate governance practices. Pacific
Edge is committed to ensuring that its corporate governance practices are in line with best practice and the NZX
Corporate Governance Code 2017 (“NZX Code”). It has mostly complied with the recommendations in the NZX Code
as outlined in Principles 1 through to 8 below. It intends to work towards full compliance of the code over the coming
financial year.
The key corporate governance documents referred to in this report are available on Pacific Edge’s website
https://www.pacificedgedx.com/investors/governance/
Pacific Edge’s compliance during FY18 with each of the principles contained with the NZX Code is outlined below.
PRINCIPLE 1: CODE OF ETHICAL BEHAVIOUR
“Directors should set high standards of ethical behaviour, model this behaviour and hold management accountable for
these standards being followed throughout the organisation.”
The Company maintains high standards of ethical behaviour and has both a Directors’ Code of Ethics and an Ethical
Behaviour Policy for employees of the Company, setting out the standards that each Director or employee must adhere
to whilst conducting their duties. General principles within both policies are that all Directors and employees must:
• Act honestly, in good faith and in the best interests of the Company as a whole;
• Exercise their powers and duties with a due degree of care and diligence;
• Not make improper use of information acquired as a Director or employee, or of assets or resources of the
Company;
• Comply with the Company’s Conflicts of Interest policy at all times; and
• Comply with the Company’s Share Trading policy.
The Directors’ Code of Ethics and recently updated Ethical Behaviour Policy can be found on the Company’s website, as
set out above.
Pacific Edge will be formalising a training programme for new and existing employees in FY19, to ensure awareness of
all key policies.
Pacific Edge also has a Share Trading Policy. Additional trading restrictions apply to Directors and senior managers.
Details of Directors’ share dealings are on page 91 of the 2018 Annual Report.
CORPORATE GOVERNANCE
PRINCIPLE 2: BOARD COMPOSITION & PERFORMANCE
“To ensure an effective Board, there should be a balance of independence, skills, knowledge, experience and
perspectives.”
The Board operates under a formal written Charter which sets out the roles and responsibilities of the Board.
The primary responsibilities of the Board include:
• Ensuring compliance with the Company’s constitution;
• Setting clear goals for the Company, ensuring that there are appropriate strategies in place for achieving those
goals;
• Monitoring the performance of management;
• Managing the Company’s financial position and financial statements;
• Ensuring that the Company follows high standards of ethical and corporate behaviour; and
• Ensuring that the Company has appropriate risk management policies in place.
Newly elected Directors are expected to familiarise themselves with their obligations under the constitution, Board
Charter and Listing Rules. Training is also provided to new and existing Directors where required to enable Directors to
understand their obligations.
Board Membership
The Board has been selected on their individual skills and contribution to the Company. The Board is comprised of five
non-executive independent Directors and one executive director, who is also the Chief Executive Officer.
The Chairman is a non-executive Director who is elected by the Directors.
While the nomination process for new Director appointments is the responsibility of the Board as a whole, the
Nomination Committee is responsible for identifying, reviewing and recommending candidates to the full Board. The
Nomination Committee operates under a written charter which is available on the Company’s website.
In accordance with the Company’s constitution, one third, or the number nearest to one third, of the Board retire by
rotation at each annual meeting. The Directors to retire are those who have been longest in office since the last election.
Directors retiring by rotation may, if eligible, stand for re-election. A Director appointed since the previous annual
meeting holds office only until the next annual meeting but is eligible for re-election at that meeting.
The Board asks for Director nominations each year, prior to the Annual Shareholders Meeting, in accordance with the
constitution of the Company and the Listing Rules.
All Directors have clear written agreements with the Company, setting out the terms of their appointment.
The Company encourages all Directors to undertake appropriate training and education so that they may best perform
their duties. This includes attending presentations on changes in governance, legal and regulatory frameworks;
attending technical and professional development courses; and attending presentations from industry experts and key
advisers.
Details of each Director, along with their experience, independence and ownership interests is included in the Annual
Report.
CORPORATE GOVERNANCE
PACIFIC EDGE LIMITED ANNUAL REPORT 2018PACIFIC EDGE LIMITED ANNUAL REPORT 2018
7978

Board Performance
The performance of the Board is reviewed periodically to assess the performance of each Director, each Committee and
the Board as a whole. The next evaluation of Board performance will be undertaken during the FY19 year.
Diversity
Pacific Edge is committed to bringing diversity to life in our employment practices and across all aspects of our
business. The Board and Company believe in providing equality of opportunity in employment, irrespective of age,
ethnic or national origin, gender, sexual orientation, family circumstances, disability, religious or ethical belief, or
economic background.
The Company’s Diversity Policy has recently been updated and is available on the Company’s website. The
Remuneration Committee is responsible for setting measurable objectives and targets to assist the Company in
achieving its goals in line with the Diversity Policy.
The Officers of the Company (as defined by the NZX Main Board Listing Rules) are the Chief Executive Officer (CEO) and
specific direct reports of the CEO having key functional responsibility, and as at 31 March 2018, females represented 31%
of Directors and Officers of the Company (FY17: 25%).
FY18
Male
FY18
Female
FY17
Male
FY17
Female
Directors of Pacific Edge6060
Officers of Pacific Edge3433
Board Meetings and Attendance
The Board meets as often as it deems appropriate including sessions to consider the strategic direction of Pacific Edge
and forward-looking business plans. Video and/or phone conferences are also used as required.
The table below sets out Director attendance at Board and Committee meetings during FY18. In total, there were 8
Board meetings, 3 Audit and Risk Committee meetings, 2 Nomination Committee meetings, and 2 Capital Strategy
Committee meetings. The section following the table summarises the compositon of each Committee.
Board
Audit & Risk
Committee
Remuneration
Committee
Nomination
Committee
Capital Strategy
Committee
Total number of meetings
held
83122
C. Gallaher
83122
D. Band83100
D. Darling
82102
D. Levison80020
A. Masfen83022
B. Williams60120
CORPORATE GOVERNANCE
PRINCIPLE 3: BOARD COMMITTEES
“The Board should use Committees where this will enhance its effectiveness in key areas, while still retaining Board
responsibility.”
The Board has delegated a number of its responsibilities to Committees to assist in the execution of the Board’s
responsibilities. These Committees review and analyse policies and strategies which are within their terms of reference.
They examine proposals and, where appropriate, make recommendations to the full Board. Committees do not take
action or make decisions on behalf of the Board unless specifically mandated by prior Board authority to do so.
The current Committees of the Board are the Audit & Risk Committee, the Nomination Committee, the Remuneration
Committee and the Capital Strategy Committee.
Audit & Risk Committee
The Company’s constitution requires it to have an Audit & Risk Committee comprised solely of Directors of the
Company, with the majority of members being independent Directors. There must be at least three members in the
Audit & Risk Committee and at least one member must have an accounting or financial background. The Audit & Risk
Committee operates under a written Charter which is available on the Company’s website.
Under the constitution, the responsibilities of the Audit & Risk Committee include as a minimum:
• Ensuring that the processes are in place and monitoring of those processes so that the Board is properly and
regularly informed and updated on corporate financial matters;
• Recommending the appointment and removal of the independent auditor;
• Monitoring and reviewing the independent and internal auditing practices;
• Having direct communication with and unrestricted access to the independent auditors and any internal auditors
or accountants;
• Reviewing the financial reports and advising all Directors whether they comply with the appropriate laws and
regulations; and
• Ensuring that the external auditor or lead audit partner is changed at least every five years.
Members of the Audit & Risk Committee as at 31 March 2018 were Anatole Masfen (Chair), David Band and Chris
Gallaher, all of whom are independent. The Audit & Risk Committee Chair is not the Chair of the Board.
Management may only attend meetings at the invitation of the Committee and the Committee routinely has
Committee-only time with the external auditors without management present.
Nomination Committee
The Board has established a Nomination Committee to recommend Director appointments to the Board. The
Nomination committee operates under a written Charter which is available on the Company’s website.
Members of the Nomination Committee as at 31 March 2018 were Anatole Masfen (Chair), Bryan Williams and David
Levison.
Management may only attend meetings at the invitation of the Committee.
Remuneration Committee
The Board has a Remuneration Committee to recommend the remuneration for Directors to the shareholders and to
oversee the remuneration of the Officers/senior managers of the Company. The Remuneration Committee operates
under a written Charter which is available on the Company’s website.
Members of the Remuneration Committee as at 31 March 2018 were David Band (Chair), Bryan Williams, Chris Gallaher
and David Darling. The CEO does not participate in any discussions concerning the CEO’s remuneration.
CORPORATE GOVERNANCE
PACIFIC EDGE LIMITED ANNUAL REPORT 2018PACIFIC EDGE LIMITED ANNUAL REPORT 2018
8180

Other Committees
The Board establishes other Committees as required. In the case of a takeover offer, Pacific Edge would form an
Independent Takeover Committee to oversee disclosure and response, and engage expert legal and financial advisors
to provide advice on procedure. The Board has established appropriate protocols that set out the procedures to be
followed if there was to be a takeover of the Company.
The Board has a Capital Strategy Committee to provide strategic direction and oversight, make recommendations to
the Board and act on matters pertaining to the Company’s capital position. The members of this Committee are Chris
Gallaher, Anatole Masfen and David Darling.
PRINCIPLE 4: REPORTING & DISCLOSURE
“The Board should demand integrity in financial and non-financial reporting, and in the timeliness and balance of
corporate disclosures.”
The Board focuses on providing accurate, adequate and timely information both to existing shareholders and to
the market generally. This enables all investors to make informed decisions about the Company. All significant
announcements made to NZX, and reports issued, are posted on the Company’s website.
The Company has procedures in place to ensure that it complies with its continuous disclosure requirements under
the NZX Listing Rules. The Continuous Disclosure Policy sets out the responsibilities of the Board and management for
managing their obligations and is available on the Company’s website.
Copies of the key governance documents, including the Ethical Behaviour Policy, Share Trading Policy, Board and
Committee Charters and Diversity Policy have recently been updated and uploaded to the Company’s website.
Financial Reporting
Pacific Edge’s management team is responsible for implementing and maintaining appropriate accounting and financial
reporting principles, policies, and internal controls. These are designed to ensure compliance with accounting standards
and applicable laws and regulations.
The Board’s Audit & Risk Committee oversees the quality and integrity of external financial reporting, including the
accuracy, completeness, balance and timeliness of financial statements. It reviews Pacific Edge’s full and half year
financial statements and makes recommendations to the Board concerning accounting policies, areas of judgement,
compliance with accounting standards, stock exchange and legal requirements, and the results of the external audit.
All matters required to be addressed, and for which the Committee has responsibility, were addressed during the
reporting period.
For the financial year ended 31 March 2018, the Directors believe that proper accounting records have been kept which
enable, with reasonable accuracy, the determination of the financial position of the Company and facilitate compliance
of the financial statements with the Financial Markets Conduct Act 2013.
The Chief Executive Officer and Chief Financial Officer have confirmed in writing to the Board that Pacific Edge’s
external financial reports present a true and fair view in all material aspects. Pacific Edge’s full and half year financial
statements are available on the Company’s website.
Non-financial Reporting
Pacific Edge discusses its strategic objectives and its progress against these in the Chair and CEO’s commentary in
shareholder reports.
The Company is working to increase its disclosure of non-financial information. Laboratory throughput figures are a key
non-financial measure for the Company and are included in the Annual Report, along with billable laboratory throughput
figures.
Health and safety information is now included in the Annual Report and the Company is working towards including
further non-financial information in future reporting.
CORPORATE GOVERNANCE
PRINCIPLE 5: REMUNERATION
“The remuneration of Directors and Executives should be transparent, fair and reasonable.”
The Remuneration Committee is responsible for ensuring that the Company has a sound Remuneration Policy to attract
and retain high performing individuals. The Remuneration Policy is available on the Company’s website.
The Committee makes recommendations to the Board on remuneration packages for the Executives of the Company.
Directors’ remuneration is also considered by the Remuneration Committee, within the limits that have been approved
by the shareholders of the Company.
External advice is sought on a regular basis to ensure remuneration is benchmarked to the market for senior
management positions, Directors and Board positions.
Further details on remuneration are included in the Remuneration Section of this Annual Report.
PRINCIPLE 6: RISK MANAGEMENT
“Directors should have a sound understanding of the material risks faced by the issuer and how to manage them. The
Board should regularly verify that the issuer has appropriate processes that identify and manage potential and material
risks.”
The Board is responsible for ensuring that appropriate policies and procedures are in place to identify and manage
the key risks of the Company, which is managed through the Audit & Risk Committee. The Audit & Risk Committee
operates in line with its Charter, which sets out its responsibilities for identifying, monitoring, treating and reporting on
key business risks. The Company’s management team maintain a detailed risk register which is updated regularly and
individual risks are discussed with the Board in detail as required.
Further details on risks are set out in the Risk Analysis on page 89 of the 2018 Annual Report.
Health and Safety
The Company takes responsibility, so far as is reasonably practicable, at all its sites to protect the health, safety and
welfare of staff and people on site, including contractors; and to act in compliance with all of its legal obligations. Pacific
Edge aims to effectively manage hazards arising from its facilities and activities. The Company’s health and safety
performance is monitored and reviewed regularly by management. The Company maintains a fundamentally safe
environment and takes its duty of care to staff, contractors and visitors very seriously.
There were no serious harm incidents reported during FY18 and no days lost to work place incidents at any Company
site. In addition, there were no serious hazards identified across the Group.
CORPORATE GOVERNANCE
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PRINCIPLE 7: AUDITORS
“The Board should ensure the quality and independence of the external audit process.”
External Auditors
The Board’s relationship with its external auditors is governed by the Audit & Risk Committee Charter. The Charter
sets out the Audit & Risk Committee’s responsibilities in relation to corporate accounting and reporting practices of the
Company, along with the quality and integrity of financial reports. It is the responsibility of the Audit & Risk Committee
to maintain free and open communication between the Directors and external auditors and to approve any non-audit
engagements performed by the audit firm.
For the financial year ended 31 March 2018, PricewaterhouseCoopers (PwC) was the external auditor for Pacific Edge
Limited. PwC was automatically re-appointed under Section 207T of the Companies Act 1993. The last audit partner
rotation was in 2016.
All audit work at Pacific Edge is separated from non-audit services, to ensure that appropriate independence is
maintained. Other services provided by PwC in FY18 were non-audit related and involved the provision of advice rather
than recommendations. These were deemed to have no effect on the independence or objectivity of the auditor in
relation to audit work. The amount of fees paid to PwC for audit and non-audit work are identified on page 48 of the
2018 Annual Report.
PwC has provided the Audit & Risk Committee with written confirmation that, in their view, they were able to operate
independently during the year.
PwC attends each annual meeting of the Company, and the lead audit partner is available to answer questions from
shareholders at that meeting. PwC attended the 2017 annual meeting.
Internal Audits
Internal audits are used as a tool for the systematic and independent examination of Pacific Edge operational processes
as they relate to product and service provision.
Pacific Edge conducts internal audits at planned intervals to verify that its Quality Management System is effectively
implemented and maintained. This ensures compliance with the requirements of its International Standard,
ISO9001:2015 certification, which was awarded in November 2017.
PRINCIPLE 8: SHAREHOLDER RIGHTS & RELATIONS
“The Board should respect the rights of shareholders and foster constructive relationships with shareholders that
encourage them to engage with the issuer.”
The Company is committed to ensuring that its shareholders are kept up to date with key activities and are provided
with relevant information about the Company and its performance.
The Company communicates with shareholders during the financial year through shareholder newsletters, annual and
half year reports and at the Annual Shareholders Meeting. The Annual Shareholders Meeting is streamed live and
is accessible worldwide. All written communications and reports are available on the Company’s website, as well as
emailed to shareholders who elect to be emailed.
In accordance with the Listing Rules, shareholders have the right to vote on major decisions which may change the
nature of the Company. Each shareholder has one vote per share and voting is conducted by polls.
The notice of the Annual Shareholders Meeting is announced on the NZX, sent to shareholders and posted on to the
Company’s website at least 28 days prior to the meeting each year as required under the Company’s constitution.
All shareholders are given the option to elect to receive electronic communications from the Company.
In addition to shareholders, Pacific Edge has a wide range of stakeholders and maintains open channels of
communication for all audiences, including brokers, the investing community and the New Zealand Shareholders’
Association, as well as its staff, suppliers and customers.
CORPORATE GOVERNANCE
Remuneration
The Pacific Edge Remuneration Committee operates as a sub-committee under the guidance of the Board to ensure
the remuneration framework that is in place is appropriate to attract, retain and reward current and future employees of
the Group. The Remuneration Committee ensures that individual employee performance is aligned to the strategy and
performance of the Company along with the interests of the shareholders.
Directors’ Remuneration
Remuneration of Directors and senior executives is the key responsibility of the Remuneration Committee.
The maximum total monetary sum payable by the Company by way of non-executive Directors’ fees is $275,000 per
annum, as approved by shareholders at the 2015 special shareholders’ meeting. Executive Directors do not receive
Directors’ fees.
Any proposed increases in non-executive Director fees and remuneration will be put to shareholders for approval at the
Annual Shareholders Meeting by way of ordinary resolution. If independent advice is sought by the Board, it will be
disclosed to shareholders as part of the approval process.
The standard Directors’ fees per annum are as follows:
Board of Directors
Position
FY18
Fees per annum
(NZ$000)
Chair75
Deputy Chair43
US Based Director77
Other Directors40
The Board recognises that there is a disparity between the market rates paid in the US and New Zealand for suitably
qualified Directors. Accordingly, in order to attract a suitably qualified US person, the Company needs to pay US market
rates. The Board has taken advice and determined that the appropriate fee for a US based Director is NZ$77,000 per
annum. Pacific Edge has one US based Director, David Levison.
Directors also receive reimbursement for reasonable travelling, accommodation and other expenses incurred in the
course of performing their duties. Directors do not receive any additional fees for positions on Committees of the Board
or subsidiary companies. Directors fees exclude GST, where applicable.
Non-executive Directors received the following Directors’ fees from the Company in the year ended 31 March 2018:
Directors’ Fees
Directors’ Fees
FY18
Per annum
(NZ$000)
Directors’ Fees
FY17
Per annum
(NZ$000)
Pacific Edge Limited Board
C. Gallaher (Chairman)7550
D. Band4345
D. Levison (USA)7777
A. Masfen4037
B. Williams4037
C. Swann-26
C. Sitch (Independent)-8
Subsidiary Directors (USA)
B. Nogales-7
Total275287
REMUNERATION
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