Directors Report 6 months to June 30 2018

Report of the Directors for the six months ended 30 June 2018
The Directors of Promisia Integrative Limited are reporting on the six months to 30 June 2018 for the company
and its subsidiaries. The period under review has been impacted significantly by the Medsafe Alert on published
on 15 February 2018. As stated in the first quarter announcement, sales reduced to very low levels
immediately following the Alert and the media coverage which followed.
Although sales have continued to recover, they are approximately 50% of where they were expected to be had
the Alert not been published.
Discussions with Medsafe continue.
Sales for the period were $467,000, a 64% reduction over the same period in the previous year. The operating
net loss for the period was $1,122,000, a significant increase on the 2017 result for the same period.
There were plans to launch two complimentary products to the Arthrem range in June 2018 but these plans were
cancelled due to the Medsafe Alert which claimed 14 liver related adverse reactions over a 22 month period. It is
important to note that this adverse reaction rate represents 1 in 14,000 and is considered to be very rare by
World Health Organisation guidelines. A number of the reports are highly questionable.
At the time of the Medsafe Alert, Promisia had just launched Arthrem in Australia and Artevite (Canine product) in
New Zealand. Both launches were supported by significant TV advertising which could not be cancelled. Sales of
both products were affected as a result of the Medsafe Alert, rendering the launches less effective than planned
while still carrying high costs.
Australia
The pharmacy distribution agreement with Pharmabroker Sales Pty Ltd in Australia continues to develop.
Name of Listed Issuer:Promisia Integrative Limited

FINANCIAL SUMMARY
For the six month period ended 30 June 2018

Half year% Up/(Down) Half yearFull year
30-Jun-18on period 30-Jun-1731-Dec-17
Unaudited30-Jun-17UnauditedAudited
$000 $000$000
Sales revenue467 -64%1,318 2,332


Operating loss before tax(1,222) 255%(344) (859)
Net Comprehensive Loss(1,222) 250%(349) (876)
Total Assets1,959 -33%2,915 2,295
Basic Earnings per share(0.002) (0.001) (0.002)
Diluted Earnings per share(0.002) (0.001) (0.002)
Tangible Asset backing per share0.003 0.0060.004

Arthrem is now in approximately 600 pharmacies in NSW and we are in the final stages of securing access to a
further 450 pharmacies nationwide.
Although the Australian market is challenging, and sales are below expectations, we are gaining market
recognition and developing a base of customers that are experiencing benefits from taking Arthrem. The
reduction in sales in New Zealand and resulting cashflow constraints have limited our ability to spend the
required amount on marketing in Australia.
Canine Product
The company’s product Artevite, for the treatment of osteoarthritis in dogs, is on the market and has good
distribution across the major pet chains. Sales are below expectation and we are currently reviewing the retail
price to establish if a reduction will drive sales.
The cash position of the company also limits the resources we have to invest in marketing other than with print
and digital platforms. Further TV promotion is out of the question at this point.
Brooklands Pet Products of New Plymouth continues to distribute Artevite on Promisia’s behalf.
The Future
The drastic reduction in sales had a significant impact on cash flow.
The company continues to explore options to fund the recovery of Arthrem sales in New Zealand. It may also
include some changes to the product to ensure the future support of Medsafe.
The Directors are evaluating options to recapitalise the company. They will notify shareholders when a preferred
course of action has been finalised.
For further information please contact:
Mr Stephen Underwood, Chairman on 027 499 3387
Mr Rene de Wit, CEO on 021 571000

Promisia Integrative Limited

Unaudited Consolidated Interim Financial Statements

For the six months ended 30 June 2018

_____________________________________________________________

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Promisia Integrative Limited
Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income
For the six month period ended 30 June 2018

UnauditedUnauditedAudited
6 months6 monthsYear
June 2018June 2017Dec 2017
$000$000$000

Revenue467 1,318 2,332
Cost of goods sold(135) (355) (642)
332 963 1,690
Other income10 - 76
Expenses
Administration (459) (386) (923)
Operating (1,002) (747) (1,379)
Research (64) (146) (258)
Amortisation and depreciation(12) (11) (23)
(1,537) (1,290) (2,583)
Loss before taxation and interest(1,195) (327) (817)


Finance cost - interest paid(28) (33) (64)
Finance income - interest received 1 16 22
Net Loss for period before income tax (1,222) (344) (859)
Income tax expense - - -

Net Loss for period (1,222) (344) (859)
Other comprehensive income
Currency translation differences - - (17)
Total comprehensive loss for period(1,222) (344) (876)
attributable to shareholders
Basic Earnings per share (0.002) (0.001) (0.002)
Diluted Earnings per share(0.002) (0.001) (0.002)














The accompanying notes form part of these financial statements

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Promisia Integrative Limited
Consolidated Interim Statement of Changes in Equity
For the six month period ended 30 June 2018
ShareForeignShareAccumulatedTotal
CapitalCurrencyOptionLosses
ReserveReserve
$000$000$000$000$000
Unaudited
At 1 January 201755,799 194 83 (54,391) 1,685
Total comprehensive loss for period- - - (344) (344)
Other comprehensive income (loss)- (5) - - (5)
Share Issue 168 - - - 168
Expired/Retired options75 - (75) - -
Share based payment- - 21 - 21
At 30 June 201756,042 189 29 (54,735) 1,525
Audited
At 1 January 201755,799 194 83 (54,391) 1,685
Total comprehensive loss for period- - - (859) (859)
Other comprehensive income (loss)- (17) - - (17)
Share Issue 167 - - - 167
Expired/Retired options75 - (75) - -
Share based payment- - 43 - 43
At 31 December 201756,041 177 51 (55,250) 1,019

Unaudited
At 1 January 201856,041 177 51 (55,250) 1,019
Total comprehensive loss for period- - - (1,222) (1,222)
Share Issue 950 - - - 950
Expired/Retired options68 - (68) - -
Share based payment- - 17 - 17
At 30 June 201857,059 177 - (56,472) 764
















The accompanying notes form part of these financial statements

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Promisia Integrative Limited
Consolidated Interim Statement of Financial Position
As at 30 June 2018

UnauditedUnauditedAudited
Notes6 months6 monthsYear
June 2018June 2017Dec 2017
$000$000$000
EQUITY
Share Capital3.357,059 56,042 56,041
Accumulated Losses(56,472) (54,735) (55,250)
Other Equity Reserves177 218 228

TOTAL EQUITY764 1,525 1,019
Represented by:
CURRENT ASSETS
Bank104 1,279 324
Receivables111 333 244
Prepayments212 199 137
Inventory1,291 891 1,383
1,718 2,702 2,088
NON-CURRENT ASSETS
Investments75 75 75
Intangible Assets125 111 125
Property, plant & equipment41 27 7
241 213207
TOTAL ASSETS1,959 2,915 2,295
less
CURRENT LIABILITIES
Payables and Accruals262 411 316
Employee benefits13 - 41
Loan97 120 480
372 531 837
NON-CURRENT LIABILITIES
Loan724 859 439
Other advances 3.4100 - -
824 859 439
TOTAL LIABILITIES1,196 1,3901,276
NET ASSETS 764 1,525 1,019














The accompanying notes form part of these financial statements

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Promisia Integrative Limited
Consolidated Interim Statement of Cash flows
For the six month period ended 30 June 2018
UnauditedUnauditedAudited
6 months6 monthsYear
June 2018June 2017Dec 2017
$000$000$000
Operating activities
Receipts from customers 556 1,489 2,926
Payments to suppliers and employees(1,656) (2,142) (4,410)
Interest (net)(28) 16 (42)
Net cash flows from (used in) operating activities(1,128) (637) (1,526)

Investing Activities
Purchase intangible assets(7) (14) (5)
Purchase property, plant & equipment (38) (4) (19)
Net cash flows from (used in) investing activities(45) (18) (24)
Financing activities
New share capital 950 167 167
Advance100 - -
Repayment of loans(97) (60) (120)
Net cash flows from financing activities953 107 47

Net change in cash (220) (548) (1,503)
Cash at Start of Period324 1,827 1,827
Cash at End of Period104 1,279 324















The accompanying notes form part of these financial statements

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Promisia Integrative Limited
Notes to The Consolidated Interim Financial Statements
For six month period ended 30 June 2018
_________________________________________________________________________

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

2 General information and statement of compliance

The company is registered under the Companies Act 1993 and is a Financial Markets Conduct
2013 reporting entity in terms of the Financial Reporting Act 2013. The group is profit –
orientated.
Promisia Integrative Limited is a company domiciled in New Zealand. The registered office of
the company is level 4, 22 Panama Street, Wellington 6011.
Basis of Preparation
The unaudited interim financial statements have been prepared in accordance with Generally
Accepted Accounting Practice in New Zealand, which is the New Zealand equivalent to
International Financial Reporting Standards (NZ IFRS). They comply with NZ IAS 34 Interim
Financial Reporting and should be read in conjunction with the 31 December 2017 annual
report.
The financial statements are presented in New Zealand dollars which is the group’s functional
and presentation currency and rounded to the nearest thousand dollars unless otherwise
stated.
These financial statements do not include all the information required for full financial statements
and consequently should be read in conjunction with the full financial statements of the Group for
the year ended 31 December 2017.

The accounting policies adopted are consistent with those of the previous financial year. All new
standards and amended standards issued during 2018 and applicable after 1 January 2019
have not been adopted. The impact in the initial period of application is expected to be minimal
at this stage.

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

3.2 Financial risk management
The Group's activities are exposed to a variety of financial risks: market risk, credit risk, liquidity risk,
cash flow risk and fair value interest-rate risk. The condensed interim financial statements do not
include all financial risk management information and disclosures required in the annual financial
statements; they should be read in conjunction with the Group's annual financial statements as at
31 December 2017. There have been no changes in the management of risk or in any risk
management policies in the current period. The Group does not have any derivative financial
instruments or any other financial assets or liabilities that are classified as instruments at fair
value through profit and loss under NZ IFRS.

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

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Promisia Integrative Limited
Notes to The Consolidated Interim Financial Statements
For the six month period ended 30 June 2018
_________________________________________________________________________________

3.3 Share Capital
The Group’s share capital includes fully paid, subscribed and treasury shares.
Issued and paid capital
There were 556,708,971 (31 December 2017: 508,958,971) ordinary shares on issue at
balance date.
During January 2018, the Group completed private placements of 47,750,000 shares to
wholesale and eligible investors at an issue price of $0.02 per share and raised the sum of
$955,000.
The placements raised new working capital to support the launch of Arthrem into the Australian
market, fund market development in New Zealand for Artevite (the canine equivalent of
Arthrem) and drive further product development. The Directors and Chief Executive supported
the company and participated in the placements to the value of $200,000.
At 30 June 2018 issued and paid capital comprised:

UnauditedUnauditedAudited
6 months6 monthsYear
June 2018June 2017Dec 2017
$000$000$000
Opening balance56,041 55,799 55,799
Shares issued950 167 167
Expired/retired options68 75 75
57,059 56,041 56,041
Unpaid ordinary shares – Treasury shares
At 30 June 2018, 16,595,856 shares ( 30 June 2017 16,595,856) remain unallocated and are
held by a nominee company Promisia Trustee Limited.
3.4. Related party information
During the six months to 30 June 2018, director fees of $50,000 (30 June 2017: $42,916 were
paid to the directors.
The Brankin Family Interest Trust advanced $100,000 to the Group of which T.D Brankin is a
related party to the Trust and a director of the Group - see note 3.8.
3.5. Contingent liabilities
There were no contingent liabilities at 30 June 2018 (30 June 2017:$nil).
3.6 Capital commitments
There were no capital commitments at 30 June 2018 ( 30 June 2017:$nil).

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Promisia Integrative Limited
Notes to The Consolidated Interim Financial Statements
For the six month period ended 30 June 2018
_________________________________________________________________________________

3.7 Unaudited Financial Statements
The interim financial statements to 30 June 2018 have not been audited.

3.8. Events subsequent to balance date
On 19 July 2018, the Group entered into a general security agreement with the Brankin Family
Interest Trust who have advanced $360,000 to the Group. Of this amount, $100,000 was
advanced prior to 30 June 2018. There are no repayment terms for the advance and no
interest chargeable. T D Brankin is director and shareholder of the Group and a related party
to the Brankin Family Interest Trust.
There have been no other matters or circumstances since the end of the financial year not
otherwise dealt with in these financial statements that have significantly or may significantly
affect the Group’s operations.