Energy Mad Limited Half Year Result

APPENDIX 1 RELEASE

2 November 2018
This document covers Energy Mad Limited’s unaudited financial results for the six months ended 30
September 2018.

ENERGY MAD LIMITED
RESULTS FOR ANNOUNCEMENT TO THE MARKET


Reporting period 6 months to 30 September 2018
Previous reporting period 6 months to 30 September 2017

Amount ($’000s) Percentage Change
Revenue from ordinary activities NZ$ 123 -77.16%
Profit / (loss) from continuing activities
attributable to security holders NZ$ (483) +4.54%
Net profit / (loss) attributable
to security holders NZ$ (483) +4.54%

Net tangible asset per security 30 September 2018 -2 cents
30 September 2017 -17 cents

Interim Dividend Amount per Security Imputed Amount per Security
No dividend is proposed Not applicable Not applicable

Record Date: Not applicable
Dividend Payable Date: Not applicable

Audit The financial statements have not been audited




The attached Condensed Interim Report is the unaudited financial statements of the Group for the
six months ended 30 September 2018.

Commentary

The results reflect the decision to conduct an orderly wind down of the business and sale of Energy
Mad’s residual assets.

• Operating revenue of $123,109 for the six months ended 30 September 2018, was well down
on the corresponding period in 2017 ($538,917). This reflects the ongoing disposal of
inventory without replenishment.
• Gross profit was a $69,435 for the six months ended 30 September 2018 compared with a
loss of $29,753 for the previous year. Inventory realisations net of holding costs have been
higher than estimated as at 31 March 2018.
• Administration and general expenses of $304,625 for the six months ended 30 September
2018 (2017: $80,424) include significant expenditure on legal and other advisory services
related to the proposed acquisition of PaySauce Limited.
• Selling and distribution expenses of $47,278 for the six months ended 30 September 2018
(2017: $47,278) are primarily agency fees paid to Ecobulb Limited.
• Net finance costs are $219,719 for the six months ended 30 September 2018 compared to
$237,934 for the prior period. The reduction is due to the conversion of interest bearing
convertible notes to shares in May 2018.
• The Group received a further $100,000 short term loan to cover costs associated with the
acquisition transaction with PaySauce. This, along with cash generated from the sale of
inventory and the realisation of receivables, has been used to cover ongoing costs.
Proposed Acquisition Transaction with PaySauce Limited

The Directors have executed a non-binding indicative terms sheet with PaySauce Limited, a provider
of cloud-based software, for the acquisition of PaySauce through the issue of shares in Energy Mad
Limited. The terms sheet is subject to due diligence being undertaken by both parties, the
completion of legally binding transaction documents, approval by shareholders and regulatory
approval.

The effect of the proposed transaction on current Energy Mad shareholders is that:

a) They will retain their current shares, which based on estimated values, will represent
approximately 3% of the issued capital post transaction;
b) The assets of the Energy Mad Group will be transferred to a wholly owned subsidiary, with
current shareholders receiving shares in this subsidiary pro rata for zero consideration,
thereby retaining their existing interest in Energy Mad assets.
c) On completion of collection of outstanding receivables and disposition of inventory, the
subsidiary will be liquidated and the proceeds (less costs) will be distributed to shareholders
and bondholders as applicable.

Due diligence has been completed, and the Directors expect to put the proposed transaction to
shareholders before the end of the year.

Agreement with Ecobulb Limited

The Agreement with Ecobulb Limited for the proposed sale and purchase of assets of Energy Mad,
announced last year, remains in place. The proposed settlement date has been extended to 31
December 2018 by agreement with Ecobulb Limited, to enable one shareholder meeting to consider
this proposal and the PaySauce proposal in tandem.

Please refer to the accompanying Market Release and Condensed Interim Report for additional
commentary and financial information.


For more information, contact:

Dr Brent Wheeler
021 834 279

---

Energy Mad Limited
Interim Report 30 September 2018
1




Energy Mad Interim Report 30 September 2018


CONTENTS


Results Overview...........................................................................................2

Interim Results and Commentary...................................................................... 2

Statement of Comprehensive Income................................................................ 4

Statement of Changes in Equity.........................................................................5

Statement of Financial Position.........................................................................6

Statement of Cash Flows................................................................................ 7

Notes to the Financial Statements.....................................................................8

Energy Mad Limited
Interim Report 30 September 2018
2




Results Overview

Reporting period 6 months to 30 September 2018
Previous reporting period 6 months to 30 September 2017

Amount ($’000s) Percentage Change
Revenue from ordinary activities NZ$ 123 -77.16%
Profit / (loss) from continuing activities
attributable to security holders NZ$ (483) +4.54%
Net profit / (loss) attributable
to security holders NZ$ (483) +4.54%

Net tangible asset per security 30 September 2018 -2 cents
30 September 2017 -17 cents

Interim Dividend Amount per Security Imputed Amount per Security
No dividend is proposed Not applicable Not applicable

Record Date: Not applicable
Dividend Payable Date: Not applicable

Audit The financial statements have not been audited

Interim Results and Commentary

Interim Results

Energy saving light bulb company Energy Mad Limited has released its unaudited results for the six
months ended 30 September 2018.

The results reflect the decision to conduct an orderly wind down of the business and sale of Energy
Mad’s residual assets.

• Operating revenue of $123,109 for the six months ended 30 September 2018, was well down
on the corresponding period in 2017 ($538,917). This reflects the ongoing disposal of inventory
without replenishment.
• Gross profit was a $69,435 for the six months ended 30 September 2018 compared with a loss
of $29,753 for the previous year. Inventory realisations net of holding costs have been higher
than estimated as at 31 March 2018.
• Administration and general expenses of $304,625 for the six months ended 30 September 2018
(2017: $80,424) include significant expenditure on legal and other advisory services related to
the proposed acquisition of PaySauce Limited.
• Selling and distribution expenses of $47,278 for the six months ended 30 September 2018
(2017: $47,278) are primarily agency fees paid to Ecobulb Limited.

Energy Mad Limited
Interim Report 30 September 2018
3

• Net finance costs are $219,719 for the six months ended 30 September 2018 compared to
$237,934 for the prior period. The reduction is due to the conversion of interest bearing
convertible notes to shares in May 2018.
• The Group received a further $100,000 short term loan to cover costs associated with the
acquisition transaction with PaySauce. This, along with cash generated from the sale of
inventory and the realisation of receivables, has been used to cover ongoing costs.
Proposed Acquisition Transaction with PaySauce Limited

The Directors have executed a non-binding indicative terms sheet with PaySauce Limited, a provider of
cloud-based software, for the acquisition of PaySauce through the issue of shares in Energy Mad
Limited. The terms sheet is subject to due diligence being undertaken by both parties, the completion
of legally binding transaction documents, approval by shareholders and regulatory approval.

The effect of the proposed transaction on current Energy Mad shareholders is that:

a) They will retain their current shares, which based on estimated values, will represent
approximately 3% of the issued capital post transaction;
b) The assets of the Energy Mad Group will be transferred to a wholly owned subsidiary, with
current shareholders receiving shares in this subsidiary pro rata for zero consideration, thereby
retaining their existing interest in Energy Mad assets.
c) On completion of collection of outstanding receivables and disposition of inventory, the
subsidiary will be liquidated and the proceeds (less costs) will be distributed to shareholders
and bondholders as applicable.
Due diligence has been completed, and the Directors expect to put the proposed transaction to
shareholders before the end of the year.

Agreement with Ecobulb Limited

The Agreement with Ecobulb Limited for the proposed sale and purchase of assets of Energy Mad,
announced last year, remains in place. The proposed settlement date has been extended to 31
December 2018 by agreement with Ecobulb Limited, to enable one shareholder meeting to consider
this proposal and the PaySauce proposal in tandem.

Thank You

The Directors of Energy Mad would like to thank the group’s shareholders and lenders for their
continued support.






Dr Brent Wheeler Aidan Johnstone
Chairman Director

Energy Mad Limited
Interim Report 30 September 2018
4

Statement of Comprehensive Income









The accompanying notes form part of these financial statements

6 Months
6 Months
12 m onths
Unaudited
Unaudited
Audited
Septem ber
Septem ber
March
2018
2017
2018
Notes
NZ$
NZ$
NZ$
Revenue
6
123,109


538,917


663,069


Cost of sales
(53,674)


(568,670)


(745,172)


Gross prof it
69,435


(29,753)


(82,104)


Other income
6
19,475


7,096


18,520


Administration and general expenses
7
(304,625)


(80,424)


(235,888)


Selling and distribution expenses
7
(47,278)


(164,670)


(222,620)


Operating loss
(262,993)


(267,751)


(522,092)


Finance income
8
316


321


631


Finance costs
8
(220,035)


(238,255)


(471,333)


Net finance costs
(219,719)


(237,934)


(470,702)


Loss before taxation
(482,713)


(505,685)


(992,793)


Income tax benef it / (expense)
11
-


-


-


Loss for the year
(482,713)


(505,685)


(992,793)


Other com prehensive incom e (loss)
Exchange gain / (loss) on translating f oreign operations
(21,747)


(19,148)


(7,161)


Total other com prehensive loss for the year
(21,747)


(19,148)


(7,161)


Total com prehensive loss for the year
(504,460)


(524,833)


(999,954)


Earnings per share:
22
Basic and diluted earnings per share
Loss f or the year
(0.00)


(0.00)


(0.01)


Total
(0.00)


(0.00)


(0.01)

Energy Mad Limited
Interim Report 30 September 2018
5

Statement of Changes in Equity


The accompanying notes form part of these financial statements
ShareForeign exchangeAccum ulatedTotal
Unaudited
capitaltranslation reservelossesequity
NotesNZ$NZ$NZ$NZ$
Balance at 1 April 2018
21,982,117 (190,793) (25,955,152) (4,163,828)
Issue of share capital
21284,000 - - -
Transactions w ith ow ners
284,000 - - 284,000
Loss f or the year
- - (482,713) (482,713)
Other comprehensive income
- (21,747) - (21,747)
Total comprehensive income
- (21,747) (482,713) (504,460)
Balance at 30 Septem ber 2018
22,266,117 (212,540) (26,437,865) (4,384,288)
ShareForeign exchangeAccum ulatedTotal
Unaudited
capitaltranslation reservelossesequity
NotesNZ$NZ$NZ$NZ$
Balance at 1 April 2017
21,982,117 (183,632) (24,962,359) (3,163,874)
Issue of share capital
21- - - -
Transactions w ith ow ners
- - - -
Loss f or the year
- - (505,685) (505,685)
Other comprehensive income
- (19,148) - (19,148)
Total comprehensive income
- (19,148) (505,685) (524,833)
Balance at 30 Septem ber 2017
21,982,117 (202,780) (25,468,044) (3,688,707)
ShareForeign exchangeAccum ulatedTotal
Audited
capitaltranslation reservelossesequity
NotesNZ$NZ$NZ$NZ$
Balance at 1 April 2017
21,982,117 (183,632) (24,962,359) (3,163,874)
Issue of share capital
21- - - -
Transactions w ith ow ners
- - - -
Loss f or the year
- - (992,793) (992,793)
Other comprehensive income
- (7,161) - (7,161)
Total comprehensive income
- (7,161) (992,793) (999,954)
Balance at 31 March 2018
21,982,117 (190,793) (25,955,152) (4,163,828)

Energy Mad Limited
Interim Report 30 September 2018
6

Statement of Financial Position



The accompanying notes form part of these financial statements

6 Months6 Months12 m onths
UnauditedUnauditedAudited
Septem berSeptem berMarch
201820172018
NotesNZ$NZ$NZ$
Current assets
Cash and cash equivalents85,674 55,912 121,367
Trade and other receivables12165,302 404,344 216,115
Income tax receivable1,006 9,920 10,004
Inventories1315,021 209,759 43,313
Total current assets267,003 679,935 390,798
Non current assets
Intangible assets15- - -
Property, plant and equipment14- - -
Total non current assets- - -
Total assets267,003 679,935 390,798
Current liabilities
Trade and other payables16985,820 976,023 923,142
Employee entitlements17- - -
Short term advance18- 65,307 1,934
Provisions3- 30,000 -
Convertible notes19128,033 387,374 406,334
Loans203,537,438 2,909,938 3,223,216
Total current liabilities4,651,290 4,368,642 4,554,626
Non current liabilities
Total non current liabilities- - -
Total liabilities4,651,290 4,368,642 4,554,626
Equity
Share capital2122,266,117 21,982,117 21,982,117
Foreign exchange translation reserve(212,540) (202,780) (190,793)
Accumulated losses(26,437,865) (25,468,044) (25,955,152)
Total equity(4,384,288) (3,688,707) (4,163,828)
Total equity and liabilities267,003 679,935 390,798

Energy Mad Limited
Interim Report 30 September 2018
7

Statement of Cash Flows

The accompanying notes form part of these financial statements
6 Months6 Months12 m onths
UnauditedUnauditedAudited
Septem berSeptem berMarch
201820172018
NotesNZ$NZ$NZ$
Operating activities
Cash was recei ved from:
Receipts f rom customers193,397 1,189,769 1,513,575
Interest received316 321 631
Taxation received8,998 1,820 1,736
202,711 1,191,910 1,515,942
Cash was appl i ed to:
Interest paid114 5,450 6,290
Payments to suppliers and employees314,608 879,130 1,185,480
314,722 884,579 1,191,771
Net cash inflow (outflow ) from operating activities24(112,011) 307,330 324,171
Investing activities
Cash was appl i ed to:
Purchase of property, plant & equipment- - -
Purchase of intangible assets- - -
- - -
Net cash outflow from investing activities- - -
Financing activities
Cash was provi ded from:
Term loan20100,000 - 100,000
100,000 - 100,000
Cash was appl i ed to:
Short term advances repaid181,934 289,466 352,839
1,934 289,466 352,839
Net cash inflow (outflow ) from financing activities98,066 (289,466) (252,839)
Net (decrease) / increase in cash and cash equivalents(13,945) 17,864 71,332
Cash and cash equivalents, beginning of the year121,367 57,195 57,195
Ef f ect of f oreign exchange rates(21,747) (19,148) (7,161)
Cash and cash equivalents, end of the year85,674 55,912 121,367

Energy Mad Limited
Interim Report 30 September 2018
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Notes to the Financial Statements

1 General information
The reporting entity is Energy Mad Limited (the “Company”). It is a for-profit entity, incorporated and domiciled in New
Zealand. The Group comprising the Company and its subsidiaries is a reporting entity for the purposes of the Financial
Markets Conduct Act 2013 and its financial statements comply with that Act. The address of its registered office is Grant
Thornton New Zealand Ltd, L3, 134 Oxford Terrace, Christchurch, New Zealand. The Company is listed on the New
Zealand Stock Exchange.

The Group’s primary activity is the importation and distribution of energy efficient light bulbs and energy efficient products.

These financial statements have been approved for issue by the Board of Directors on 2 November 2018.

2 Statement of compliance
The consolidated financial statements for the Group have been prepared in accordance with Generally Accepted
Accounting Practice in New Zealand ("NZ GAAP") and the requirements of the Financial Markets Conduct Act 2013. They
comply with New Zealand equivalents to International Financial Reporting Standards ("NZ IFRS") and other applicable
New Zealand accounting standards and authoritative notices that are appropriate to for-profit entities that apply NZ IFRS.
NZ IAS 34, Interim Financial Reporting, has been applied in preparing the financial statements. The financial statements
also comply with International Financial Reporting Standards (IFRS).

The going concern assumption has not been applied in the preparation of the consolidated financial statements. Refer
note 3.

These consolidated financial statements do not include all the notes of the type included in an annual financial report. This
report should be read in conjunction with the audited financial statements of Energy Mad Limited for the year ended 31
March 2018.
3 Use of estimates and judgements

The preparation of financial statements requires management to make judgements, estimates and assumptions that affect
the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. The estimates
and the associated assumptions are based on historical experience and various other factors that are believed reasonable
under the circumstances, the results of which form the basis of making the judgements about carrying values of assets
and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised and in any future periods affected.

Judgement has also been exercised in preparing these financial statements in relation to the following:
Going concern / expected net realisation
The Directors are of the view that a recovery in performance in the near term is no longer possible, and have therefore
pursued an orderly wind down of the business and sale of the Group’s residual assets.

The accounts have therefore been prepared on an expected net realisation basis where assets are carried at the amount
of cash or cash equivalents that are expected to be attained under the orderly wind down and sale, net of provisions for
estimated realisation costs through to the expected settlement date.

Energy Mad Limited
Interim Report 30 September 2018
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Reclassification of all non-current assets and liabilities
The Group expects to realise all of its assets within 12 months of the date of the statement of financial position. The
external liabilities of the Group are expected to be settled within its normal operating cycle as a result of the realisation of
assets, and as a consequence of the acquisition transaction with PaySauce Limited (refer note 28).

Provision for inventory
The Group has assessed the expected net realisable value of all inventory with reference to current market realisation,
age of stock and expected costs of disposal including warehousing and distribution costs and agency commissions. A
provision for inventory obsolescence of $1,657,678 was recognised in the Statement of Comprehensive Income for the
2017 year within the New Zealand and Australia segments, with $114,323 utilised in the six months to 30 September 2018
(March 2018: $789,917).
Provision for exit costs associated with winding down operations
The Group estimated the costs of winding down operations and proceeding through to a sale of the Group’s residual
assets at $250,000. This included the cost of office leases through to termination, staffing costs, expected legal and
advisory fees and other overheads. The provision was recognised in the year ended 31 March 2017 within the New
Zealand segment and was fully utilised in the year ended 31 March 2018.
Impairment of fixed and intangible assets
The Group expected to get little or no recovery for fixed and intangible assets and therefore fully impaired these
classes of assets, recognising an impairment charge of $923,636 in the year ended 31 May 2017, within the New Zealand
segment.
Deferred tax asset
The Directors consider it is unlikely that future taxable profits will be generated to offset available tax losses, and
accordingly deferred tax assets of $3,548,920 associated with those tax losses have not been recognised.
Provision for doubtful debts
The Group has assessed the recoverability of trade receivables with reference to historical bad debts, current debtor
ageing, and potential recoveries through trade credit insurance. The provision has been assessed at $10,198 (March
2018: $72,303)
4 Summary of accounting policies
4.1 Overall consideration
The significant accounting policies that have been used in the preparation of these consolidated financial statements are
summarised below. They are consistent with those used in the previous financial year.

The consolidated financial statements have been prepared using the measurement bases specified by NZ IFRS for each
type of asset, liability, income and expense. The measurement bases are more fully described in the accounting policies
below.

4.2 Basis of preparation
These accounts are not prepared on a going concern basis. The financial statements have been prepared on a realisation
amount basis. Refer to Note 3 for further information.

4.3 Presentation of financial statements
The consolidated financial statements are presented in accordance with NZ IAS 34 Interim Financial Reporting. The
Group has elected to present the Statement of Comprehensive Income in one statement. The Statement of
Comprehensive Income discloses the analysis of expenses using the function method.

Energy Mad Limited
Interim Report 30 September 2018
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4.4 Basis of consolidation
The consolidated financial statements of the Group comprise the Company and its subsidiaries. The subsidiaries are fully
consolidated from the date on which control is transferred to the Company and de-consolidated from the date that control
ceases. The Group obtains and exercises control as the basis for determining which entities are consolidated in the
consolidated financial statements. All subsidiaries have a reporting date of 31 March.

In preparing the consolidated financial statements, all inter entity balances and transactions, and unrealised profits and
losses arising within the consolidated entity are eliminated in full.

The Group uses the acquisition method of accounting for business combinations. On initial recognition, the assets and
liabilities of the acquired subsidiary are included in the consolidated statement of financial position at their fair values,
which are also used as the basis for subsequent measurement in accordance with the Group's accounting policies.
Acquisition costs are expensed as incurred.

4.5 Foreign currency translation
The financial statements are presented in New Zealand dollars, which is the Company’s functional currency and the
Group’s presentation currency. All financial information presented in New Zealand dollars has been rounded to the
nearest dollar.

Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary
economic environment in which the entity operates.

Foreign currency transactions are translated into the presentation currency using the exchange rates prevailing at the
dates of the transactions or valuation where items are re-measured. Foreign exchange gains and losses resulting from the
settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in the Statement of Comprehensive Income.

The results and financial position of all the Group entities (none of which has the currency of a hyper-inflationary
economy) that have a functional currency different from the presentation currency are translated into the presentation
currency as follows:

(a) assets and liabilities for each statement of financial position as presented are translated at the closing rate at the date
of that statement of financial position;

(b) income and expenses for each statement of comprehensive income are translated at average exchange rates (unless
this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in
which case income and expenses are translated at the rate on the dates of the transactions); and

(c) all resulting exchange differences are recognised in other comprehensive income.

On consolidation, exchange differences arising from the translation of the net investment in foreign operations, and of
borrowings and other currency instruments, are taken to other comprehensive income. When a foreign operation is
partially disposed of or sold, exchange differences that were recorded in equity are recognised in the Statement of
Comprehensive Income as part of the gain or loss on sale.

4.6 Segment reporting
In identifying its operating segments, the Directors generally follow three reporting segments based on the geographical
locations of the operations and revenue streams. These segments have been determined based on the reports reviewed
by the Directors and, according to NZ IFRS 8, are around the assessment of performance and the allocation of resources.

Energy Mad Limited
Interim Report 30 September 2018
11




The geographical areas are as follows:

Segment Activity
New Zealand Sale of energy efficient products within New Zealand
Australia Sale of energy efficient products within Australia
Rest of World Sale of energy efficient products to all other countries

Each of these operating segments is managed within the Group and each of these service lines requires different
resources and marketing approaches.

The measurement policies the Group uses for segment reporting under NZ IFRS 8 are the same as those used in its
financial statements.

There have been no changes from prior periods in the measurement methods used to determine reported segment profit
or loss.

4.7 Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue
can be reliably measured.

Revenue comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course
of the Group’s activities. Revenue is shown net of goods and services tax, returns, rebates and discounts and after
eliminating sales within the Group.

Sale of goods
The Group sells a range of ecobulbs in the wholesale market. Sales of goods are recognised when a Group entity has
delivered products to the customer. Delivery does not occur until the products have been shipped to the specific location,
and the risks of obsolescence and loss have been transferred to the customer. The ecobulb products are often sold with
volume discounts. Sales are recorded based on the price specified in the sales contracts, net of estimated volume
discounts and returns at the time of sale.

4.8 Finance income and expenses

Finance income
Interest income is recognised as it accrues, using the effective interest method.

Finance expenses
All finance expenses are recognised in profit and loss using the effective interest method.

Energy Mad Limited
Interim Report 30 September 2018
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4.9 Financial instruments
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of
the financial instrument being the trade date.

Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when
the financial asset and all substantial risks and rewards are transferred. A financial liability is derecognised when it is
extinguished, discharged, cancelled or expires.

Financial assets and financial liabilities held by the Group are measured initially at fair value plus/less transaction costs,
except for financial assets carried at fair value through profit or loss where transaction costs are expensed in the
Statement of Comprehensive Income.

Financial assets and financial liabilities are measured subsequently as described below.

Financial assets
The Group’s financial assets include cash and cash equivalents and trade and other receivables.

Loans and receivables
Cash and cash equivalents and trade and other receivables are non-derivative financial assets with fixed or determinable
payments that are not quoted in an active market. After initial recognition, these are measured at amortised cost using the
effective interest method, less provision for impairment. The Group recognises purchases and sales of financial assets at
trade date.

Loans and receivables are considered for impairment 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 or
investee, probability that a 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.

If there is objective evidence that impairment exists for individual loans and receivables, the impairment loss is calculated
as the difference between the carrying amount of the financial assets and the present value of estimated future cash flows
using the original effective interest rate. Receivables with a short duration are not discounted.

The Group uses an allowance account to reduce the carrying amount of loans and receivables that are considered to be
impaired (or in the case of a reversal of a write-down because of an event occurring after the impairment was recognised,
an increase), unless there is no reasonable possibility of recovering any cash from the debtor or investee. In this case,
the Group writes off the receivable directly (and transfers any impairment loss recognised in the allowance account
directly to the receivable).

Other financial liabilities
The Group's financial liabilities include loans and borrowings (including convertible notes), trade and other payables and
finance lease payable.

All financial liabilities are measured subsequently at amortised cost using the effective interest method.

Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the
liability for at least 12 months after the reporting date.

Trade and other payables represent liabilities for goods and services provided to the Group prior to the end of the
reporting period which are unpaid. The amounts are unsecured.

Energy Mad Limited
Interim Report 30 September 2018
13



4.10 Statement of Cash Flows
The Statement of Cash Flows has been prepared using the direct method. Definitions are:

1) Operating Activities
Are the principal revenue-producing activities of the Group and other activities that are not investing or financing activities.

2) Investing Activities
All transactions relating to the acquisition and disposal of long term assets and other investments not included in cash and
cash equivalents.

3) Financing Activities
Are activities that result in changes of the equity and debt capital structure of the reporting entity and the cost of servicing
the equity capital.

4.11 Cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with banks, investments in term deposits with
maturities of less than three months, bank overdrafts and other highly liquid investments that are readily convertible to
known amounts of cash as part of its day to day cash management and which are subject to an insignificant risk of
changes in value.

4.12 Inventories
Inventories are measured at the lower of cost and net realisable value. Net realisable value is the estimated selling price,
less the estimated costs of completion and selling expenses.

Cost is based on the weighted average method and includes expenditure in acquiring the inventories and bringing them to
their existing location and condition.

4.13 Income tax
Income tax on the profit or loss for the year comprises current and deferred tax. Income tax is recognised in the Statement
of Comprehensive Income except to the extent that it relates to items recognised directly in equity, in which case it is
recognised in equity.

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively
enacted at the reporting date, and any adjustment to tax payable in respect of previous years.

Deferred tax is provided on temporary differences arising on investments in subsidiaries and other financial assets except
to the extent that the timing of the reversal of the temporary differences is controlled by the Group and it is probable that
the temporary difference will not reverse in the foreseeable future.

The amount of deferred tax provided is determined by using tax rates and laws enacted or substantively enacted at
reporting and expected to apply when the related deferred tax asset or liability is realised or settled.

A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against
which the asset can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related
tax benefit will be realised.

Energy Mad Limited
Interim Report 30 September 2018
14



4.14 Property, plant and equipment
Items of property, plant and equipment are measured at cost less accumulated depreciation and impairment losses. Cost
includes expenditure that is directly attributable to the acquisition of the asset. In the event that settlement of all or part of
the purchase consideration is deferred, cost is determined by discounting the amounts payable in the future to their
present value as at the date of acquisition.

The cost of self-constructed assets includes the cost of materials and direct labour, any other costs directly attributable to
bringing the asset to a working condition for its intended use, and the costs of dismantling and removing the items and
restoring the site on which they are located. Purchased software that is integral to the functionality of the related
equipment is capitalised as part of that equipment.

When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate
items (major components) of property, plant and equipment.

The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it
is probable that the future economic benefits embodied within the part will flow to the Group and its cost can be measured
reliably. The costs of the day-to-day servicing of property, plant and equipment are recognised in profit or loss as
incurred. Property plant and equipment is subject to impairment testing as described in Note 4.19.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised
within “administration and general expenses” in the Statement of Comprehensive Income.

Depreciation is recognised in the Statement of Comprehensive Income to write off the cost of an item of property, plant
and equipment, less any residual value, over its expected useful life, at the following rates:

 Computer equipment 14.4% - 60.0% Diminishing value
 Office furniture and equipment 15.6% - 50.0% Diminishing value
 Motor vehicles 30.0% - 36.0% Diminishing value
 Laboratory equipment 40.0% Diminishing value
 Plant and equipment 60.0% - 67.0% Diminishing value

Depreciation methods, useful lives and residual values are reviewed at each reporting date.
4.15 Intangible assets
Intangible assets include acquired and internally developed software used in administration, trademarks and patents
acquired and internally developed designs and development. They are accounted for using the cost model whereby
capitalised costs are amortised on a straight-line basis over their estimated useful lives, as these assets are considered
finite. Residual values and useful lives are reviewed at each reporting date. In addition, they are subject to impairment
testing as described in Note 4.19. The following useful lives are applied:
 Software: 4 years
 Trademarks 7 – 11 years
 Patents 2.5 years
 Designs 1 – 20 years
 Development 3 - 5 years

Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset
to which it relates. All other expenditure is recognised in profit or loss when incurred.
Research and Development Expenditure
Expenditure on research (or the research phase of an internal project) is recognised as an expense in the period in which
it is incurred. Costs that are directly attributable to the development phase of new ecobulbs and energy efficient products
are recognised as intangible assets provided they meet the following recognition requirements:

Energy Mad Limited
Interim Report 30 September 2018
15



 completion of the intangible asset is technically feasible so that it will be available for use or sale;
 the Group intends to complete the intangible asset and use or sell it;
 the Group has the ability to use or sell the intangible asset;
 the intangible asset will generate probable future economic benefits. Among other things, this requires that there is a
market for the output from the intangible asset or for the intangible asset itself, or, if it is to be used internally, the
asset will be used in generating such benefits;
 there are adequate technical, financial and other resources to complete the development and to use or sell the
intangible asset; and
 the expenditure attributable to the intangible asset during its development can be measured reliably.
Development costs not meeting these criteria for capitalisation are expensed as incurred.
Directly attributable costs include employee costs incurred on product development along with directly attributable
overheads. Internally generated product development recognised as intangible assets are subject to the same
subsequent measurement method as external product development costs. However, until completion of the development
project, the assets are subject to impairment testing only as described below in Note 4.19.
The gain or loss arising on the disposal of an intangible asset is determined as the difference between the proceeds and
the carrying amount of the asset.
4.16 Short-term employee entitlements
Short-term employee entitlements, including holiday entitlement, are current liabilities included in employee entitlements,
measured at the undiscounted amount that the Group expects to pay as a result of the unused entitlement.

Liabilities for accumulating short-term compensated absences are measured as the amount of unused entitlement
accumulated at the pay period ending immediately prior to the reporting date.
4.17 Equity, reserves and dividend payments
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares are
shown in equity as a deduction from the proceeds.
Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion
of the entity, on or before the end of the reporting period but not distributed at the end of the reporting period.
Retained earnings include all current and prior period accumulated losses.
Foreign exchange translation reserve reflects foreign exchange gains and losses resulting from the translation of assets,
liabilities, income and expenses of Group entities that have a functional currency different from the Group presentation
currency.
All transactions with owners of the parent are recorded separately within equity.

Energy Mad Limited
Interim Report 30 September 2018
16



4.18 Leased assets
Leases in which a significant portion of the risk and rewards of ownership are retained by the lessor are classified as
operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to
the Statement of Comprehensive Income on a straight-line basis over the period of a lease. The Group leases certain
property, plant and equipment. Leases of property, plant and equipment, where the Group has substantially all the risks
and rewards of ownership, are classified as finance leases. Finance leases are capitalised at the lease’s commencement
at the lower of the fair value of the leased property and the present value of the minimum lease payments.
Each lease payment is allocated between the liability and finance charges. The corresponding rental obligations, net of
finance charges, are included in non current liabilities. The interest element of the finance cost is charged to the
Statement of Comprehensive Income 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 shorter of the useful life of the asset and the lease term.
4.19 Impairment of non-financial assets
The carrying amounts of the Group’s intangible assets and property plant and equipment are reviewed at each reporting
date to determine whether there is any indication of impairment. If any such indication exists then the asset’s recoverable
amount is estimated.
An impairment loss is recognised if the carrying amount of an asset exceeds its recoverable amount. Impairment losses
are recognised in the Statement of Comprehensive Income.
The recoverable amount of an asset is the greater of its value in use and its fair value less costs to sell. In assessing
value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that
reflects current market assessments of the time value of money and the risks specific to the asset.
An impairment loss in respect of other assets (i.e. property, plant and equipment and intangible assets) is assessed at
each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if
there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed
only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been
determined, net of depreciation or amortisation, if no impairment loss had been recognised.
4.20 Goods and services tax
The financial statements are prepared exclusive of GST with the exception of receivables and payables that are shown
inclusive of GST. Where GST is not recoverable as an input tax it is recognised as part of the related asset or expense.
The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable
to the taxation authority, are presented as operating cash flows.
5 Segment reporting
The Directors currently identify the Group’s service lines as operating segments as further described in Note 4.6. These
segments have been determined based on the reports reviewed by the Directors and, according to NZ IFRS 8, are around
the assessment of performance and the allocation of resources.
Segment profit / (loss) represents the profit / (loss) earned by each segment including allocation of some central
administration costs and finance costs of short term advances. The segment profit represents the profit (loss) before tax.
This is the measure reported to the Directors for the purpose of resource allocation and assessment of segment
performance.

Energy Mad Limited
Interim Report 30 September 2018
17



Segment information for the Group can be analysed as follows for the reporting periods under review:

NZ$NZ$NZ$NZ$NZ$
Six months ended 30 September 2017New ZealandAustraliaRest of WorldEliminationsTotal
Revenue from external customers 110,078 428,839 - - 538,917
Other income7,096 - - - 7,096
Depreciation & amortisation- - - - -
Provision for stock obsolescence- - - - -
Provision for exit costs associated with winding
down operations- - - - -
Impairment of assets- - - - -
Segment net (loss)/profit before tax(314,845) (190,153) (687) - (505,685)
Non-current asset additions-
Segment assets 2,615,976 402,423 - (2,338,464) 679,935
Segment liabilities(3,680,323) (595,159) (2,183,722) 2,090,562 (4,368,642)
Reconcilation to loss after tax:
Segment net (loss)/profit before tax(527,190)
Income tax expense-
Loss after tax for the period(527,190)
NZ$NZ$NZ$NZ$NZ$
Six months ended 30 September 2016New ZealandAustraliaRest of WorldEliminationsTotal
Revenue from external customers 534,577 3,134,207 - - 3,668,784
Other income8,999 - - - 8,999
Depreciation & amortisation(143,579) - - - (143,579)
Provision for stock obsolescence- - - - -
Provision for exit costs associated with winding
down operations- - - - -
Impairment of assets- - - - -
Segment net (loss)/profit before tax(1,209,503) 766,424 (57,248) - (500,327)
Non-current asset additions123,572 - - - 123,572
Segment assets 4,455,451 2,764,115 323,601 (3,190,162) 4,353,005
Segment liabilities(4,592,577) (2,024,762) (2,290,037) 2,619,997 (6,287,379)
Reconcilation to loss after tax:
Segment net (loss)/profit before tax(500,327)
Income tax expense-
Loss after tax for the period(500,327)
NZ$NZ$NZ$NZ$NZ$
Year Ended 31 March 2017New ZealandAustraliaRest of WorldEliminationsTotal
Revenue from external customers 633,719 4,693,551 - - 5,327,270
Other income17,765 - - - 17,765
Depreciation & amortisation(303,662) - - - (303,662)
Provision for stock obsolescence(266,127) (1,391,551) - - (1,657,678)
Provision for exit costs associated with winding
down operations(250,000) - - - (250,000)
Impairment of assets(923,636) - - - (923,636)
Segment net (loss)/profit before tax(3,749,965) (240,986) (8,222) - (3,999,172)
Non-current asset additions-
Segment assets 3,088,855 1,436,508 690 (2,778,285) 1,747,768
Segment liabilities(3,685,376) (1,677,222) (2,254,808) 2,705,765 (4,911,642)
Reconcilation to loss after tax:
Segment net (loss)/profit before tax(3,999,172)
Income tax expense-
Loss after tax for the year(3,999,172)

Energy Mad Limited
Interim Report 30 September 2018
18



6 Revenue and other income
Revenue and other income includes the following items:


7 Administration and general expenses / selling and distribution expenses

Profit / (loss) before taxation includes the following expenses:

6 Months6 Months12 m onths
UnauditedUnauditedAudited
Septem berSeptem berMarch
201820172018
NZ$NZ$NZ$
Revenue
Sale of eco bulbs and energy ef f icient products 123,109 538,917 663,069
Revenue subtotal 123,109 538,917 663,069
Other incom e
Sundry income 19,475 7,096 18,520
Other income subtotal 19,475 7,096 18,520
Total revenue and other incom e 142,584 546,013 681,589
6 Months6 Months12 m onths
UnauditedUnauditedAudited
Septem berSeptem berMarch
Note201820172018
NZ$NZ$NZ$
Adm inistration and general expenses:
Audit f ees 10 - 15,000 70,000
Depreciation and amortisation 9 - - -
Directors f ees and expenses - 31,193 45,999
Donations - - -
Employment expenses - (30,165) (30,748)
Exchange (gains) / losses on trading 26,387 (8,945) 4,414
Lease and rental expenses - - -
Of f ice & administration 12,685 43,631 59,190
Research costs (11,408) - -
Other expenses 276,961 29,710 87,033
Total adm inistration and general expenses 304,625 80,424 235,888
Selling and distribution expenses:
Sales commissions and external f ees 46,933 164,325 222,620
Other selling and distribution expenses 345 345 -
Total selling and distribution expenses 47,278 164,670 222,620
Total expenses
351,903 245,094 458,508

Energy Mad Limited
Interim Report 30 September 2018
19



8 Finance costs / (income)



9 Depreciation and amortisation



The Group expected to get little or no recovery for fixed and intangible assets and therefore fully impaired these
classes of assets in the year ended 31 May 2017.


10 Auditors’ remuneration
Amounts paid to the auditors include:

Note 1: The $15,000 paid to 30 September 2017 reflects an under-accrual of audit fees for the year ended 31 March
2017.

6 Months6 Months12 m onths
UnauditedUnauditedAudited
Septem berSeptem berMarch
201820172018
NZ$NZ$NZ$
Interest income on bank deposits and employee loans (316) (321) (631)
Finance incom e (316) (321) (631)
Interest expense on loans and borrow ings 220,035 238,255 471,333
Total selling and distribution expenses 220,035 238,255 471,333
Total expenses
219,719 237,934 470,702
6 Months6 Months12 m onths
UnauditedUnauditedAudited
Septem berSeptem berMarch
201820172018
NZ$NZ$NZ$
Depreciation of fixed assets - - -
Amortisation of trademarks, patents, designs and softw are - - -
Amortisation of research and development - - -
Total depreciation and am ortisation - - -
6 Months6 Months12 m onths
UnauditedUnauditedAudited
Septem berSeptem berMarch
201820172018
NZ$NZ$NZ$
Audit of financial statem ents
Audit of financial statements
1
- 15,000 70,000
Other Services- - -
Total fees paid to auditor- 15,000 70,000

Energy Mad Limited
Interim Report 30 September 2018
20



11 Income tax
The relationship between the expected tax expense based on the domestic effective tax rate of Energy Mad Limited at
28% (2016: 28%) and the reported tax expense in the Statement of Comprehensive Income can be reconciled as follows,
also showing major components of tax expense.

The Directors consider it is extremely unlikely that future taxable profits of $3,548,920 will be generated to offset available
tax losses, and accordingly deferred tax assets associated with those tax losses have not been recognised.


12 Trade and other receivables





6 Months
6 Months
12 m onths
Unaudited
Unaudited
Audited
Septem ber
Septem ber
March
2018
2017
2018
NZ$
NZ$
NZ$
Loss bef ore tax f rom operations
(482,713)
(505,685)
(992,793)
Loss bef ore tax f rom discontinuing operations
-
-
-
Prof it / (loss) bef ore taxation
(482,713)
(505,685)
(992,793)
Domestic tax rate f or Energy Mad Limited
28%
28%
28%
Expected tax benef it
(135,160)
(141,592)
(277,982)
Adjustment f or non taxable income and expenses
(48,663)
(129,070)
(28,115)
Adjustment in respect of previous years
(221,179)
-
-
Tax benef it not recognised in current year
405,001
270,662
306,098
Tax (expense) / benefit
-
-
-
Taxable prof it / (loss)
(656,509)
(966,651)
(1,093,205)
Losses brought f orw ard
(2,102,488)
(8,004,130)
(8,004,130)
Adjustment in respect of previous years
(789,923)
-
-
Tax losses no longer claimable
-
-
6,994,848
Losses to carry forw ard
(3,548,920)
(8,970,781)
(2,102,488)
6 Months6 Months12 m onths
UnauditedUnauditedAudited
Septem berSeptem berMarch
201820172018
NZ$NZ$NZ$
Trade receivables52,785348,809 173,781
Provision for doubtful debts(10,198)(70,305)(72,303)
Goods & services tax refund6,92613,366 8,543
Prepayments40,78937,474 31,094
NZX bond75,00075,000 75,000
Total trade and other receivables 165,302 404,344 216,115

Energy Mad Limited
Interim Report 30 September 2018
21



13 Inventories




The cost of inventories for the year is included in cost of sales in the Statement of Comprehensive Income.

The inventory obsolescence provision has been assessed at $1,037,296 (March 2018: $1,151,619).


6 Months6 Months12 m onths
UnauditedUnauditedAudited
Septem berSeptem berMarch
201820172018
NZ$NZ$NZ$
Ecobulbs1,052,3161,941,314 1,194,932
Inventory deposits - 60,618 -
Provision for inventory obsolescence (1,037,296) (1,792,173) (1,151,619)
Total inventories 15,021 209,759 43,313

Energy Mad Limited
Interim Report 30 September 2018
22



14 Property, plant and equipment

Com puter
equipm ent
Office
furniture and
equipm ent
Plant &
equipm ent
Motor
vehicles
Laboratory
equipm entTotal
NZ$NZ$NZ$NZ$NZ$NZ$
Cost
Balance at 1 April 2018 22,015 - 93,214 710 39,631 155,570
Additions, separately acquired
- - - - - -
Disposals - - - - - -
Balance at 30 Septem ber 2018 22,015 - 93,214 710 39,631 155,570
Accum ulated depreciation
Balance 1 April 2018 (18,908) - (88,641) (710) (35,447) (143,706)
Depreciation - - - - - -
Disposals - - - - - -
Balance at 30 Septem ber 2018 (18,908) - (88,641) (710) (35,447) (143,706)
Im pairm ent as at 30 Septem ber 2018 (3,107) - (4,573) - (4,184) (11,864)
Carrying am ount 30 Septem ber 2018 - - - - - -
Com puter
equipm ent
Office
furniture and
equipm ent
Plant &
equipm ent
Motor
vehicles
Laboratory
equipm entTotal
NZ$NZ$NZ$NZ$NZ$NZ$
Cost
Balance at 1 April 2017 201,865 56,225 93,214 1,323 39,631 392,258
Additions, separately acquired
- - - - - -
Disposals - - - - - -
Balance at 30 Septem ber 2017 201,865 56,225 93,214 1,323 39,631 392,258
Accum ulated depreciation
Balance 1 April 2017 (188,141) (50,286) (88,641) (1,323) (35,447) (363,838)
Depreciation - - - - - -
Disposals - - - - - -
Balance at 30 Septem ber 2017 (188,141) (50,286) (88,641) (1,323) (35,447) (363,838)
Im pairm ent as at 30 Septem ber 2017 (13,724) (5,939) (4,573) - (4,184) (28,420)
Carrying am ount 30 Septem ber 2017 - - - - - -
Com puter
equipm ent
Office
furniture and
equipm ent
Plant &
equipm ent
Motor
vehicles
Laboratory
equipm entTotal
NZ$NZ$NZ$NZ$NZ$NZ$
Cost
Balance at 1 April 2017 201,865 56,225 93,214 1,323 39,631 392,258
Additions, separately acquired
- - - - - -
Disposals (179,850) (56,225) - (613) - (236,688)
Balance at 31 March 2018 22,015 - 93,214 710 39,631 155,570
Accum ulated depreciation
Balance 1 April 2017 (188,141) (50,286) (88,641) (1,323) (35,447) (363,838)
Depreciation - - - - - -
Disposals 169,233 50,286 - 613 - 220,132
Balance at 31 March 2018 (18,908) - (88,641) (710) (35,447) (143,706)
Im pairm ent as at 31 March 2018 (3,107) - (4,573) - (4,184) (11,864)
Carrying am ount 31 March 2018 - - - - - -

Energy Mad Limited
Interim Report 30 September 2018
23




15 Intangible assets

Developm ent
Tradem arks,
patents and
designsSoftw areTotal
NZ$NZ$NZ$NZ$
Cost
Balance at 1 April 2018
4,292,765 389,648 43,689 4,726,102
Additions
- - - -
Disposals
- - - -
Balance at 30 Septem ber 2018
4,292,765 389,648 43,689 4,726,102
Am ortisation and im pairm ent
Balance at 1 April 2018
(4,292,765) (389,648) (43,689) (4,726,102)
Amortisation
- - - -
Disposals
- - - -
Impairment
- - - -
Balance at 30 Septem ber 2018
(4,292,765) (389,648) (43,689) (4,726,102)
Carrying am ount 30 Septem ber 2018
- - - -
Developm ent
Tradem arks,
patents and
designsSoftw areTotal
NZ$NZ$NZ$NZ$
Cost
Balance at 1 April 2017
4,292,765 389,648 113,779 4,796,192
Additions
- - - -
Balance at 30 Septem ber 2017
4,292,765 389,648 113,779 4,796,192
Am ortisation and im pairm ent
Balance at 1 April 2017
(4,292,765) (389,648) (113,779) (4,796,192)
Amortisation
- - - -
Impairment
- - - -
Balance at 30 Septem ber 2017
(4,292,765) (389,648) (113,779) (4,796,192)
Carrying am ount 30 Septem ber 2017
- - - -
Developm ent
Tradem arks,
patents and
designsSoftw areTotal
NZ$NZ$NZ$NZ$
Cost
Balance at 1 April 2017
4,292,765 389,648 113,779 4,796,192
Additions
- - - -
Disposals
- - (70,090) (70,090)
Balance at 31 March 2018
4,292,765 389,648 43,689 4,726,102
Am ortisation and im pairm ent
Balance at 1 April 2017
(4,292,765) (389,648) (113,779) (4,796,192)
Amortisation
- - - -
Disposals
- - 70,090 70,090
Impairment
- - - -
Balance at 31 March 2018
(4,292,765) (389,648) (43,689) (4,726,102)
Carrying am ount 31 March 2018
- - - -

Energy Mad Limited
Interim Report 30 September 2018
24



16 Trade and other payables

17 Employee entitlements


The last remaining employees left the Group in May 2017. All employee benefits were settled in accordance with the
relevant agreements and the Group has no remaining employment related obligations.

18 Short term advance


The Group had a A$1,000,000 factoring facility from global debtor finance provider Scottish Pacific Business Finance,
through the assignment of its Australian accounts receivable. This facility related to debtors less than 90 days old and was
for a two year period from 22 February 2016 at an interest rate of 1% above Westpac Banking Corporation’s Indicator
Lending Rate. This facility was secured by a General Security Agreement over the assets and undertaking of Energy Mad
NZ Limited, which had a guarantee and indemnity from Energy Mad Limited. The facility has now been closed and the
security released.


6 Months6 Months12 m onths
UnauditedUnauditedAudited
Septem berSeptem berMarch
201820172018
NZ$NZ$NZ$
Trade payables985,820943,295 868,142
Sundry accruals - 32,728 55,000
Total trade and other payables 985,820 976,023 923,142
6 Months6 Months12 m onths
UnauditedUnauditedAudited
Septem berSeptem berMarch
201820172018
NZ$NZ$NZ$
Total em ployee entitlem ents - - -
6 Months6 Months12 m onths
UnauditedUnauditedAudited
Septem berSeptem berMarch
201820172018
NZ$NZ$NZ$
Short term advance - 65,307 1,934
Total short term advance - 65,307 1,934

Energy Mad Limited
Interim Report 30 September 2018
25



19 Convertible notes (unsecured)

Convertible notes (unsecured) include the following liabilities:



Convertible notes to the value of $284,000 converted to shares on 22 May 2018. The issue price was $0.01 per share,
being the higher of the average Energy Mad share price over the five days prior to conversion and the minimum
conversion price approved by shareholders, resulting in the issue of 28,400,000 shares (refer also note 21).

20 Loans
Loans include the following liabilities:



The Group obtained a $500,000 term loan facility from SuperLife Limited on 11 September 2015. The loan facility is for a
term of two years with a right of renewal for a further one year at an interest rate of 14% per annum for the first two years
and 15% per annum for the third year. The loan is unsecured.

The Group obtained a further $1,000,000 term loan facility from SuperLife Limited on 1 June 2016. The loan facility is for a
one year term at an interest rate of 15.75% per annum. The loan is unsecured.

The Group obtained a further $1,000,000 term loan facility from Smartshares Limited on 21 November 2016. The loan
facility is for a one year term at an interest rate of 20% per annum, and is secured by way of a Specific Security Deed over
inventory held by the Group.

The Group has been advanced $200,000 to cover initial costs associated with the acquisition transaction with PaySauce
Limited (refer note 28). The loan is repayable in the event that Energy Mad’s shareholders vote against the transaction,
the Group terminates the transaction without cause or the Group materially breaches the transaction documents.

All facilities have been fully drawn down at balance date.

6 Months6 Months12 m onths
UnauditedUnauditedAudited
Septem berSeptem berMarch
201820172018
NZ$NZ$NZ$
Convertible notes (unsecured) - 284,000 284,000
Overdue and accrued interest 128,033 103,374 122,334
Total convertible notes (unsecured) 128,033 387,374 406,334
6 Months6 Months12 m onths
UnauditedUnauditedAudited
Septem berSeptem berMarch
201820172018
NZ$NZ$NZ$
Term Loan (unsecured) 1,500,000 1,500,000 1,500,000
Term Loan (secured) 1,000,000 1,000,000 1,000,000
Short Term Loan 200,000 - 100,000
Overdue and accrued interest 837,438 409,938 623,216
Total term loan 3,537,438 2,909,938 3,223,216

Energy Mad Limited
Interim Report 30 September 2018
26



21 Contributed equity
All ordinary shares have an equal right to vote, to dividends and to any surplus on winding up.

28,400,000 shares were issued on 22 May 2018, on conversion of convertible notes to the value of $284,000. The issue
price was $0.01 per share, being the higher of the average Energy Mad share price over the five days prior to conversion
and the minimum conversion price approved by shareholders (refer also note 19).
22 Earnings per share
The basic earnings per share have been calculated using the profit / (loss) for the year attributable to shareholders of the
Company. No options to subscribe for securities have been or are granted in respect of the Company.
The weighted number of shares used is as follows:




6 Months6 Months12 m onths
UnauditedUnauditedAudited
Septem berSeptem berMarch
201820172018
NZ$NZ$NZ$
Shares issued and f ully paid:
Beginning of the year 21,982,117 21,982,117 21,982,117
Share issue 284,000 - -
Total shares authorised 22,266,117 21,982,117 21,982,117
Reconciliation of the Number of Shares:
Opening shares on issue 147,436,635 147,436,635 147,436,635
Shares Issued, Fully Paid at $0.01 Per Share 28,400,000 - -
Total num ber of shares 175,836,635 147,436,635 147,436,635
6 Months6 Months12 m onths
UnauditedUnauditedAudited
Septem berSeptem berMarch
201820172018
Weighted average number of ordinary sharesBasic 167,921,881 147,436,635 147,436,635
NZ$NZ$NZ$
Loss f or the year(482,713) (505,685) (992,793)
Total loss f or the year(482,713) (505,685) (992,793)
Earnings per share:
Basic earnings per share
Loss f or the year(0.00) (0.00) (0.01)
Total(0.00) (0.00) (0.01)

Energy Mad Limited
Interim Report 30 September 2018
27



23 Financial instruments by category
The carrying amounts of financial instruments presented in the Statement of Financial Position relate to the following
categories of assets and liabilities:

All financial instruments have been recognised in accordance with the accounting policy in Note 4.9.
The fair value of all financial instruments is approximately equal to their carrying value.
24 Reconciliation of loss for the period to net operating cash flows





6 Months6 Months12 m onths
UnauditedUnauditedAudited
Septem berSeptem berMarch
201820172018
NZ$NZ$NZ$
Cash and cash equivalents 85,674 55,912 121,367
Loans and receivables
Trade receivables 52,785 348,809 173,781
Total loans and receivables 52,785 348,809 173,781
138,459 404,720 295,148
Trade and other payables 985,820 976,023 923,142
Convertible note (unsecured) 128,033 387,374 406,334
Term loans 3,537,438 2,909,938 3,223,216
Short term advance - 65,307 1,934
4,651,290 4,338,642 4,554,626
Other financial liabilities at am ortised cost
6 Months6 Months12 m onths
UnauditedUnauditedAudited
Septem berSeptem berMarch
201820172018
NZ$NZ$NZ$
Net loss af ter tax(482,713) (505,685) (992,793)
Adjustments f or:
Depreciation and amortisation- - -
Impairment of patents and designs- - -
(482,713) (505,685) (992,793)
Change in income tax receivable8,998 1,820 1,736
Change in inventories28,292 420,973 587,419
Change in trade & other receivables50,813 643,757 831,986
Change in trade & other payables62,678 (165,640) (218,521)
Change in provisions- (220,000) (250,000)
Change in employee benef its- (100,698) (100,698)
Change in accrued interest219,921 232,805 465,042
Net cash inflow /(outflow ) from operating activities(112,011) 307,330 324,171

Energy Mad Limited
Interim Report 30 September 2018
28



25 Capital commitments

There were no capital commitments at 30 September 2018 (March 2018: $Nil).
26 Contingent assets and liabilities

A former agent, Direct Energy Solutions Limited, has lodged a claim in the District Court against Energy Mad Limited for
$137,217 plus interest and costs, in relation to unpaid agency fees and costs wrongfully deducted from agency fees paid.
The claim is being defended by the Group. These financial statements include an unpaid debt owed by Direct Energy
Solutions Limited of $36,110, and an unpaid amount owed to Direct Energy Solutions Limited of $24,382, with the net
balance having been fully provided for as a doubtful debt.
27 Related parties

The Group entered into the following transactions and had balances payable/receivable with the following related parties:
On 22 May 2018, a convertible note issued in 2014 was converted to shares based on the terms disclosed in note 19.
This conversion increased the shareholding of SuperLife Limited to 76% of the Company. The Group also has an
unsecured term loan facility from Superlife Limited and a secured term loan facility from Smartshares Limited.
Total interest of $219,921 was recognised on these facilities for the six months to 30 September 2018 (March 2018:
$465,043). The balance owing on these facilities at 30 September was $3,465,471 (March 2018: $3,529,550) (refer to
notes 19 and 20).
Key management personnel remuneration
Key management personnel are defined as those persons having authority and responsibility for planning, directing and
controlling the activities of the Group, and include the General Manager – Finance and Operations and his key reports.
The following table summarises remuneration paid to key management personnel.

The last remaining employees left the Group in May 2017.
The General Manager – Finance and Operations (Aidan Johnstone) was re-engaged on a casual employment agreement
to assist with the orderly wind down of the business. He has been paid $41,969 during the six months to September 2018
under this agreement (March 2018: $103,125).
Agency Arrangement – Ecobulb Limited
On 8 May 2017, the Group entered into an Agreement with Ecobulb Limited (“Ecobulb”), for the sale and purchase of
assets of the Group. Ecobulb is associated with Dr Chris Mardon, a former Director and then employee of the Group. The
Agreement constitutes an initial agency arrangement for the orderly sale of the Group’s inventory, and a potential sale of
specified assets of the Group, being primarily inventory and intellectual property, and excluding cash on hand, trade
debtors and rights under any contract of insurance, and the assumption of specific liabilities, being obligations under the
6 Months6 Months12 m onths
UnauditedUnauditedAudited
Septem berSeptem berMarch
201820172018
NZ$NZ$NZ$
Short-term employee benefits- 53,439 53,439

Energy Mad Limited
Interim Report 30 September 2018
29



agreement between the Group and My Eco Limited for direct sales within New Zealand, and all customer service
obligations.

Ecobulb Limited has been paid $46,933 in the six months to September 2018 under this arrangement (2018: $222,620).
Ecobulb also assumed employment related obligations of the Group as at 8 May 2017 totaling $97,354.

The proposed sale to Ecobulb Limited is subject to shareholder approval. The proposed settlement date has been
deferred to 31 December 2018 or earlier if agreed between the parties.

28 Acquisition Transaction with PaySauce Limited
On 1 March 2018 Energy Mad Limited signed a non-binding indicative term sheet (Term Sheet) with PaySauce Limited
(PaySauce), a provider of cloud-based, software-as-a-service payroll solutions. The details of the Term Sheet are as
follows:
1. The transaction will involve all of the Group’s assets being transferred to a wholly owned subsidiary (EMSUB), with the
shares in the subsidiary being distributed pro rata for zero consideration to all of the Company’s existing shareholders.
The business of PaySauce will then be acquired by Energy Mad Limited through the issue of shares to shareholders of
PaySauce in exchange for all of the shares in PaySauce. The Company will then change its name to PaySauce Limited.

2. The effect for Energy Mad’s shareholders if the transaction is completed is that they will retain their current shares,
which become an indirect interest in PaySauce, but will also, for no consideration, receive shares in EMSUB which will be
an interest in the same assets that the Group currently has. Upon completion of collection of outstanding receivables and
disposition of inventory, EMSUB will be liquidated and the proceeds (less costs) will be distributed to MAD Subsidiary’s
shareholders and the Company’s bondholders as applicable. It is currently anticipated that the Company will be
sufficiently funded to pay its liabilities upon completion of the transaction, subject to all of the conditions of the transaction
being satisfied.

3. The initial indicative and non-binding estimates for the transaction are:
a. the value of the shares in PaySauce (on a debt free / cash free basis) is approximately $10 million; and
b. the value of the shares in Energy Mad is approximately $310,243 (based on the 50 day moving average market
capitalisation to the date of the Term Sheet).
Based on these valuations the shareholders of Energy Mad will own approximately 3% and the current shareholders of
PaySauce the remaining 97% of the share capital of PaySauce Limited. These values are subject to final determination
and may vary.

4. The transactions contemplated by the Term Sheet are conditional on:
a. Energy Mad conducting a due diligence investigation of PaySauce;
b. PaySauce conducting a due diligence investigation of Energy Mad;
c. entry into legally binding transaction documents between Energy Mad and PaySauce;
d. obtaining any necessary waivers from NZX that are required in order to proceed with the transaction;
e. Energy Mad obtaining shareholder approval for the sale of assets of the Group to Ecobulb Limited (refer note 27);
and
f. Energy Mad obtaining all shareholder approvals that are required to undertake the transactions, including under
the Companies Act 1993, the Takeovers Code and the NZX Listing Rules.
A notice of special meeting to approve the transactions, and all other required documentation, will be circulated to Energy
Mad’s shareholders. Such documentation will include an independent report and appraisal report on the merits of the
transaction as required under the Takeovers Code and the Listing Rules along with a profile document on the business of

Energy Mad Limited
Interim Report 30 September 2018
30



PaySauce as required under the Listing Rules.

5. Energy Mad and PaySauce will seek to hold the required shareholders’ meeting as soon as practicable with the
intention of completing the transactions shortly after such approvals are obtained.

6. If the transaction is successful, Energy Mad’s shareholders will retain their current shares, which will become an indirect
interest in PaySauce. Energy Mad’s shareholders will also receive shares in EMSub, which will hold all of the assets the
Energy Mad Limited Group currently has, for no consideration. Accordingly, Energy Mad’s shareholders receive an
indirect interest in PaySauce while retaining their interest in the Group’s assets. The proposed sale of assets to Ecobulb is
expected to take place concurrently.

7. PaySauce will pay the costs of the transaction. However, in the event that the Company’s shareholders vote against the
transaction, the Company terminates the transaction without cause or the Company materially breaches the transaction
documents, the Company will be liable to pay its share of the costs of the transaction.

29 Subsequent events

The Directors are not aware of any other material matters or circumstances since the end of the reporting period, not
otherwise dealt with in the financial statements that have significantly or may significantly affect the operations of the
Group.