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ACN 139 977 772
APPENDIX 4D – 31 December 2014 Interim Report APPLABS TECHNOLOGIES LTD (ASX:ALA) DATE: 27 FEBRUARY 2015
1. Reporting Period
The current reporting period is the period ended 31 December 2014 and the previous corresponding period is for the period ended 31 December 2013
2. Results for Announcement to the Market. Half year Dec
31 2014 Half year Dec
31 2013 Movement Up/(Down)
Percentage Movement
$ $ $ 2.1 Revenue from ordinary activities (excluding interest income)
388,693
40,804
347,889
852.59%
2.2 Profit/(loss) from continuing operations after tax attributable to members.
(879,560)
(504,731)
(374,829)
-74.26%
2.3 Net profit/(loss) for the period attributable to members.
(885,426)
(526,965)
(358,460)
-68.02%
2.4 Amount per security and franked amount per security of interim dividend.
No interim dividends have been paid or provided for during the period
2.5 Record date for determining entitlements to the dividends and payment date.
Not applicable
2.6 Brief explanation of any of the figures in 2.1 to 2.4 necessary to enable the figures to be understood.
See Directors Report – Financial Report for the Half-Year Ended 31 December 2014.
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3. Net Tangible Assets per Security
31 Dec 2014
30 Dec 2013
Cents Cents Net tangible assets per security
12.78
11.30
4. Details of entities over which control has been gained or lost during the period Not Applicable 5. Details of Dividend and Distribution Payments
No dividends or distributions have been paid or provided for during the period.
6. Dividend Reinvestment Plans There are no dividend or distribution reinvestment plans in operation. 7. Associates and Joint Venture Entities Not applicable 8. Foreign Entities
Not applicable 9. Audit Dispute or Qualification None.
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APPLABS TECHNOLOGIES LTD
ABN 41 139 977 772
INTERIM FINANCIAL REPORT FOR THE HALF-YEAR ENDED
31 DECEMBER 2014
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Applabs Technologies Ltd and its Controlled Entities ABN 41 139 977 772
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TABLE OF CONTENTS
Directors’ Report......................................................................................................................... 3
Auditor’s Independence Declaration........................................................................................... 7
Consolidated Statement of Profit or Loss & Other Comprehensive Income.........................................................................................................................................
8
Consolidated Statement of Financial Position........................................................................... 9
Consolidated Statement of Changes in Equity.......................................................................... 10
Consolidated Statement of Cash Flows..................................................................................... 11
Notes to the Consolidated Financial Statements........................................................................ 12
Directors’ Declaration.................................................................................................................. 17
Independent Auditor’s Report..................................................................................................... 18
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Applabs Technologies Ltd and its Controlled Entities ABN 41 139 977 772
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DIRECTORS’ REPORT The Directors present their report on the consolidated entity consisting of Applabs Technologies Ltd (formerly AACL Holdings Ltd) and the entities it controlled at the end of, or during, the half-year ended 31 December 2014.
Directors
The names and details of Directors in office at any time during the period were:
Rocco Tassone (appointed 15/10/2013) Charles Thomas (appointed 9/12/2013) Patrick Glovac (appointed 9/12/2013) Stuart Kidd (resigned 1/10/2014)
Directors have been in office since the beginning of the period to the date of this report unless otherwise stated.
Result of Operations The loss after income tax for the half-year was $ 879,560 (2013: loss after tax $526,965).
Review of Operations
Overview and Key events for the half year to 31 December 2014
The Board of Applabs Technologies Ltd is pleased to provide shareholders with an update on the activities completed during the period ended 31 December 2014. HIGHLIGHTS Internal App Development & Fee for Service Division update
Applabs achieves a ~500% increase in sales during the December 2014 quarter Home Open appointed ex. CEO of realestate.com.au, Jamie Pride to the Board of Advisors Home Open appointed a dedicated Sales Executive, Mark Matear, to accelerate Western
Australian agent signup process Venture Capital Division update
One of Applabs investment companies xTV Networks Ltd, through Intercept Minerals Ltd, successfully completed a $6M capital raising through a prospectus for listing on the ASX
Chat Center advances development for launch of new version complete with paid services for SMB’s
PAY2DAY product launched and is now undertaking solid beta testing RosterElf launches updated website PositivFlo has completed the development of the PositivFlo app for Personal Trainers
App Development & Fee for Service Division Applabs internal Fee for Service division had a 500% increase in customer receipts during the first half and contracts executed during the financial year to date, increased to $920,000. The Company currently has 21 projects underway with various completion dates and payments based on development milestones.
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Applabs Technologies Ltd and its Controlled Entities ABN 41 139 977 772
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Home Open
During the half year Applabs announced the appointment of Jamie Pride, ex CEO of realestate.com.au. To assist Home Open with its near term growth objectives, the Company also appointed Mr Mark Matear to assist with agent signups in WA. Mark has extensive experience in this field as an ex Sales Executive for the Western Australia Newspaper focusing on the real estate sector. Jamie and Mark’s experience are an invaluable addition to the Home Open team. In addition to the new appointments, the Company also launched v2 of the Home Open iPhone application. New mapping features have been integrated into the application along with improved messaging features directly with agents. RosterElf
RosterElf had an extremely successful half announcing the launch of a new enhanced website. The new website was a key milestone in the anticipated global expansion. In addition to the launch, RosterElf developed a strategic Search Engine Optimisation and Search Engine Marketing campaign, which have returned extremely positive results including a 700% increase in customer uptakes over a 3 month period. PAY2DAY
During the half, PAY2DAY launched the product with beta customers as well as developed strategic positions with key players who are instrumental in the success of the app. PositivFlo
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Applabs Technologies Ltd and its Controlled Entities ABN 41 139 977 772
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Development of the PositivFlo app for personal trainers was completed during the half. The main features of the app seamlessly combine scheduling, automated billing and client management. The ‘App’ will move into a Beta testing phase over the next few weeks with the goal of achieving a full national roll out by the 2nd Quarter of 2015. Updates can be found on the PositivFlo Website (www.positivflo.com) xTV Networks Limited In December 2014, xTV Networks Limited completed a successful raising of the maximum amount of $6 million under its December prospectus. The Company has since been granted approval to commence trading on the ASX. xTV also had a corporate success with the announcement that it had now moved into the lucrative Chinese market through Chinese incubator, Innovalley. Liberty Resources Limited One of Applabs investment portfolio companies, Liberty Resources Limited (ASX:LBY) announced that it had exercised its option to acquire 100% of Cirrus Networks Pty Ltd. The Western Australian based information technology integrator recorded unaudited revenue of A$5.9M to year ending June 2014, through well known Australian clients including; Argyle Diamond Limited, Western Australian Police, Royal Hill Iron Ore, LandCorp and Independence Group NL. The corporate transactions facilitated by Applabs further validate the Company’s Venture Capital division business model. Events occurring after the end of the interim reporting period
Liberty Resources Limited, an Applabs investment company, exercises option to acquire $5.9 million revenue company, Cirrus Networks Pty Ltd.
xTV Networks Limited, an Applabs investment company, listed on the ASX on the 4th of February 2014. Applabs holds 45,197,540 shares in xTV.
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Applabs Technologies Ltd and its Controlled Entities ABN 41 139 977 772
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Auditor’s independence declaration A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 7. This report is made in accordance with a resolution of Directors.
DIRECTOR
Dated 27th day of February 2015
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BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275,an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, andform part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation other than for
the acts or omissions of financial services licensees
Tel: +61 8 6382 4600Fax: +61 8 6382 4601www.bdo.com.au
38 Station StreetSubiaco, WA 6008PO Box 700 West Perth WA 6872Australia
DECLARATION OF INDEPENDENCE BY DEAN JUST TO THE DIRECTORS OF APPLABS TECHNOLOGIESLIMITED
As lead auditor for the review of Applabs Technologies Limited for the half-year ended 31 December2014, I declare that to the best of my knowledge and belief, there have been:
• no contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the review; and
• no contraventions of any applicable code of professional conduct in relation to the review.
This declaration is in respect of Applabs Technologies Limited and the entities it controlled during the
period.
Dean Just
Director
BDO Audit (WA) Pty Ltd
Perth, 27 February 2015
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CONSOLIDATED STATEMENT OF PROFIT OR LOSS & OTHER COMPREHENSIVE INCOME For the half-year ended 31 December 2014
Note Half Year
2014 $
Half Year
2013 $
Continuing operations:
Sales Revenue 3 388,693 2,580
Other income 3 77,691 4,954
Share of (losses) from Associates using equity method (41,799)
Fair value movement of financial assets 161,932
Operating expenses 4 (835,526) (488,294)
Intellectual property development expense - (8,823)
Research costs 4 (447,719) -
Depreciation and amortisation expense 4 (189,560) (10,194)
Foreign Exchange gain 6,728 -
Loss before income tax (879,560) (499,777) Income tax expense - -
Loss after tax from continuing operations (879,560) (499,777) Discontinued operations:
Profit on sale of subsidiaries - 32,399
(Loss)/ gain from discontinued operations - (59,587)
Income tax expense - - (Loss) from discontinued operations - (27,188) Net (loss) for the period attributable to the members of the entity
(879,560) (526,965) Other comprehensive income (5,866) -
Total comprehensive (loss) attributable to members of the entity
(885,426) (526,965)
Loss per share for the half year attributable to the members of Applabs Technologies Ltd
Basic (loss) per share (cents per share) (2.07) (0.54)
Diluted (loss) per share (cents per share) (1.13) (0.54)
From continuing operations:
Basic (loss) per share (cents per share) (2.07) (0.51)
Diluted (loss) per share (cents per share) (1.13) (0.51)
From discontinued operations:
Basic profit per share (cents per share) - (0.03)
Diluted profit per share (cents per share) - (0.03)
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2014
Note
31 December 2014
$
30 June 2014
$
ASSETS Current Assets
Cash and cash equivalents 3,290,802 4,974,394 Trade and other receivables 100,780 183 Total Current Assets 3,391,582 4,974,577 Non-Current Assets Property, plant and equipment 54,479 59,399 Intangible assets 5 623,065 810,962 Investments accounted for using the equity method 279,674 321,473 Financial assets at fair value through the profit & loss 6 593,951 290,533 Financial assets at fair value through other comprehensive income 6
1,262,491 486,882
Other Non-Current Assets - 50,387 Total Non-Current Assets 2,813,660 2,019,636 Total Assets 6,205,242 6,994,213 LIABILITIES Current Liabilities Trade and other payables 63,038 143,008 Short-term provisions 41,567 18,340 Total Current Liabilities 104,605 161,348 Total Liabilities 104,605 161,348 Net Assets 6,100,638 6,832,865 EQUITY Issued capital 24,877,426 24,815,147 Reserves 424,621 339,567 Accumulated losses (19,201,409) (18,321,849) Total Equity 6,100,638 6,832,865
The above consolidated statement of financial position should be read in conjunction with the accompanying notes
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the half-year ended 31 December 2014
Share
Capital
Ordinary
Option Reserve
Financial
Asset
Reserve
Accumulated
Losses
Total
Balance at 1 July 2013 17,077,117 - - (16,422,889) 654,228
Total comprehensive (loss)
Loss for the period attributable to members of the entity -
- - (526,965) (526,965)
Transactions with owners in their capacity as owners
Issue of shares 4,200,000 - - - 4,200,000
Capital Raising Costs (265,477) - - - (265,477)
Balance at 31 December 2013 21,011,640 - - (16,949,854) 4,061,786
Balance at 1 July 2014 24,815,147 256,199 83,368 (18,321,849) 6,832,865
Total comprehensive (loss)
Loss for the period attributable to members of the entity
- - - (879,560) (879,560)
Other Comprehensive Income - - (5,866) - (5,866)
Transactions with owners in their capacity as owners
Issue of options - 100,000 - - 100,000
Issue of shares 100,000 - - 100,000
Capital Raising Costs (37,722) (9,080) - - (46,802)
Balance at 31 December 2014 24,877,426 347,119 77,502 (19,201,409) 6,100,638
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
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CONSOLIDATED STATEMENT OF CASH FLOWS For the half-year ended 31 December 2014
Note
Half-year
2014 $
Half-year
2013 $
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 352,548 2,580
Payments to suppliers and employees (1,374,132) (824,857)
Interest received 77,691 8,746
Net cash (used in) operating activities (943,893) (813,531)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of subsidiaries - 30,339
Purchase of property, plant and equipment (6,383) (19,806)
Payment of financial assets (822,236) -
Acquisition of Intangibles - (26,043)
Net cash (used in) by investing activities (828,619) (15,510)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of options net of transaction costs 88,920 2,734,523
Proceeds from borrowings - 34,456
Net cash provided by financing activities 88,920 2,768,979
Net increase/(decrease) in cash and cash equivalents (1,683,592) 1,939,938
Cash and cash equivalents at beginning of the half-year 4,974,394 814,966
Cash and cash equivalents at end of the half-year 3,290,802 2,754,904
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
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NOTES TO THE FINANCIAL STATEMENTS For the half-year ended 31 December 2014
Note 1: Significant accounting policies Statement of compliance These general purpose financial statements for the interim half-year reporting period ended 31 December 2014 have been prepared in accordance with Australian Accounting Standard AASB 134 'Interim Financial Reporting' and the Corporations Act 2001, as appropriate for for-profit oriented entities. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 'Interim Financial Reporting'. AASB134(19) 43. These general purpose financial statements do not include all the notes of the type normally included in annual financial statements. Accordingly, these financial statements are to be read in conjunction with the annual report for the year ended 30 June 2014 and any public announcements made by the company during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001. AASB134(6) The principal accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period. The following Accounting Standards and Interpretations are most relevant to the consolidated entity: AASB 2013-3 Amendments to AASB 136 - Recoverable Amount Disclosures for Non-Financial Assets The consolidated entity has applied AASB 2013-3 from 1 July 2014. The disclosure requirements of AASB 136 'Impairment of Assets' have been enhanced to require additional information about the fair value measurement when the recoverable amount of impaired assets is based on fair value less costs of disposals. Additionally, if measured using a present value technique, the discount rate is required to be disclosed. AASB 2014-1 Amendments to Australian Accounting Standards (Parts A to C) The consolidated entity has applied Parts A to C of AASB 2014-1 from 1 July 2014. These amendments affect the following standards: AASB 2 'Share-based Payment': clarifies the definition of 'vesting condition' by separately defining a 'performance condition' and a 'service condition' and amends the definition of 'market condition'; AASB 3 'Business Combinations': clarifies that contingent consideration in a business combination is subsequently measured at fair value with changes in fair value recognised in profit or loss irrespective of whether the contingent consideration is within the scope of AASB 9; AASB 8 'Operating Segments': amended to require disclosures of judgements made in applying the aggregation criteria and clarifies that a reconciliation of the total reportable segment assets to the entity's assets is required only if segment assets are reported regularly to the chief operating decision maker; AASB 13 'Fair Value Measurement': clarifies that the portfolio exemption applies to the valuation of contracts within the scope of AASB 9 and AASB 139; AASB 116 'Property, Plant and Equipment' and AASB 138 'Intangible Assets': clarifies that on revaluation, restatement of accumulated depreciation will not necessarily be in the same proportion to the change in the gross carrying value of the asset; AASB 124 'Related Party Disclosures': extends the definition of 'related party' to include a management entity that provides KMP services to the entity or its parent and requires disclosure of the fees paid to the management entity; AASB 140 'Investment Property': clarifies that the acquisition of an investment property may constitute a business combination. Note 2: Segment information Identification of Reportable Segments The consolidated entity identified its operating segments based on the internal reports that are reviewed and used by the Board of Directors (chief operating decision makers) in assessing performance and determining the allocation of resources.
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NOTES TO THE FINANCIAL STATEMENTS (cont.) For the half-year ended 31 December 2014
The financial information presented in the Statement of Profit or Loss and Other Comprehensive Income and Statement of Financial Position is the same as that presented to chief operating decision makers.
Note 3: Revenue and Other Income
31 Dec 2014 $
31 Dec 2013 $
Sales revenue App Development Services 388,693 2,580 388,693 2,580 Other Income Interest received 77,691 4,954 77,691 4,954
Total Revenue and Other Income 466,384 7,534
Note 4. Expenses
31 Dec 2014 $
31 Dec 2013 $
31 Dec 2014 $
31 Dec 2013 $
Finance Costs
Interest expense on borrowings - 14,435
Other finance costs - 10,885
Finance costs expensed - 25,320
Depreciation and amortisation expense
Plant and Equipment
- Depreciation expense 11,306 10,194
Intangibles
- Amortisation expense 178,254
-
Total depreciation and amortisation expense 189,560 10,194
Operating Expenses
Administration 261,958 381,327
Compliance and regulatory 164,535 20,690
Consultancy Expense 35,684 16,677
Marketing expense 87,583 1,893
Occupancy expense 140,544 40,918
Travel expense 22,852 -
Directors’ benefit expense 161,228 8,000
Employee benefit expense 408,861 18,789
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Research amount included in above expenses (Contra amount only)
(447,719) -
835,526 488,294
Research costs1 447,719 - 1. Research Costs are allocated based on activity and labour hours spent directly on research
Note 5: Intangible Assets
31 December 2014 30 June 2014 At Cost $ $ Opening Balance Acquisitions during the period:
810,962 -
Business names and Domain names - 350,000 Trademarks, Copyright and Patents - 50,000 Mobile Applications and Other Source Code - 800,726
Impaired during the period: (9,643) -
Accumulated Amortisation
801,319 (178,254)
1,200,726 (389,764)
Closing Balance 623,065 810,962
Note 6: Fair value measurement
Fair value hierarchy The following table details the consolidated entity’s assets and liabilities, measured or disclosed at fair value, using a three level hierarchy, based on the lowest level of input that is significant to the entire fair value measurement, being: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date; Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; Level 3: Unobservable inputs for the asset or liability. Consolidated 31 December 2014
Level 1
$
L
Level 2
$
Level 3
$ $
Total
$ $
Assets
Financial assets at fair value through profit or loss - 593,951 - 593,951
Financial Assets at fair value through OCI 663,590 - 598,901 1,262,491
TOTAL ASSETS 663,590 593,951 598,901 1,856,442
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Consolidated 30 June 2014
Level 1
$
$ Level $
Level 2
$ $
Level 3
$ $
Total
$
Assets
Financial assets at fair value through profit or loss - 290,533 - 290,533
Financial Assets at fair value through OCI 333,468 - 153,414 486,882
TOTAL ASSETS 333,468 290,533 153,414 777,415
The carrying amounts of trade and other receivables and trade and other payables are assumed to approximate their fair values due to their short-term nature. Valuation techniques for fair value measurements categorised within Level 2 and Level 3 Unquoted investments have been valued using market corroborated inputs and the price paid to acquire the asset in an exchange transaction between unrelated parties. Level 3 assets Movements in Level 3 assets during the current and previous financial year are set out below:
Fair value through OCI
$ Total
$
Consolidated Balance at 1 July 2013 - -
Gains recognised in other comprehensive income - -
Additions 153,414 153,414
Disposals - -
Balance at 30 June 2014 153,414 153,414
Balance at 1 July 2014 153,414 153,414
Gains recognised in other comprehensive income 36,252 36,252
Additions 409,235 409,235
Disposals - -
Balance at 31 December 2014 598,901 598,901
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Note 7. Contingent Liabilities There have been no changes in contingent liabilities since the last annual reporting period. Note 8. Events occurring after the end of the interim reporting period
Liberty Resources Limited, an Applabs investment company, exercises option to acquire $5.9 million revenue company, Cirrus Networks Pty Ltd.
xTV Networks Limited, an Applabs investment company, listed on the ASX on the 4th of February 2014. Applabs holds 45,197,540 shares in xTV.
Note 9: Related Party Transactions
There have been no changes to the nature and scale of related party transactions from June 30, 2014 financial year. Note 10: Critical Estimates and judgements
The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. The group uses its judgement to select a variety of methods and make assumptions that are mainly based on market conditions existing at the end of each reporting period. In the current period, the fair value of Level 3 financial assets has been determined based on the historical cost of those assets. This was deemed to reflect fair value due to the recent nature of the investments which were undertaken with unrelated parties on an arm’s length basis.
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DIRECTORS’ DECLARATION For the half year ended 31 December 2014
The directors of the Company declare that: 1. The financial statements and notes set out on pages 8 to 16 are in accordance with the
Corporations Act 2001, including: a. complying with Accounting Standard AASB 134: Interim Financial Reporting and other
mandatory professional reporting requirements; and
b. giving a true and fair view of the consolidated entity's financial position as at 31 December 2014 and of its performance for the half-year ended on that date.
2. In the directors’ opinion there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.
This declaration is made in accordance with a resolution of the Board of Directors.
Patrick Glovac Managing Director Perth, WA
Dated this 27th day of February 2015
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BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275,an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, andform part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation other than for
the acts or omissions of financial services licensees
38 Station StreetSubiaco, WA 6008PO Box 700 West Perth WA 6872Australia
Tel: +61 8 6382 4600Fax: +61 8 6382 4601www.bdo.com.au
INDEPENDENT AUDITOR’S REVIEW REPORT
To the members of Applabs Technologies Limited
Report on the Half-Year Financial Report
We have reviewed the accompanying half-year financial report of Applabs Technologies Limited, whichcomprises the consolidated statement of financial position as at 31 December 2014, the consolidatedstatement of profit or loss and other comprehensive income, the consolidated statement of changes in
equity and the consolidated statement of cash flows for the half-year ended on that date, notescomprising a statement of accounting policies and other explanatory information, and the directors’declaration of the consolidated entity comprising the company and the entities it controlled at the
half-year’s end or from time to time during the half-year.
Directors’ Responsibility for the Half-Year Financial Report
The directors of the company are responsible for the preparation of the half-year financial report that
gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act
2001 and for such internal control as the directors determine is necessary to enable the preparation ofthe half-year financial report that is free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express a conclusion on the half-year financial report based on our review. Weconducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review
of a Financial Report Performed by the Independent Auditor of the Entity, in order to state whether,on the basis of the procedures described, we have become aware of any matter that makes us believethat the half-year financial report is not in accordance with the Corporations Act 2001 including: giving
a true and fair view of the consolidated entity’s financial position as at 31 December 2014 and itsperformance for the half-year ended on that date; and complying with Accounting Standard AASB 134Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of Applabs
Technologies Limited, ASRE 2410 requires that we comply with the ethical requirements relevant tothe audit of the annual financial report.
A review of a half-year financial report consists of making enquiries, primarily of persons responsible
for financial and accounting matters, and applying analytical and other review procedures. A review issubstantially less in scope than an audit conducted in accordance with Australian Auditing Standardsand consequently does not enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
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Independence
In conducting our review, we have complied with the independence requirements of the Corporations
Act 2001. We confirm that the independence declaration required by the Corporations Act 2001, whichhas been given to the directors of Applabs Technologies Limited, would be in the same terms if givento the directors as at the time of this auditor’s review report.
Conclusion
Based on our review, which is not an audit, we have not become aware of any matter that makes usbelieve that the half-year financial report of Applabs Technologies Limited is not in accordance with
the Corporations Act 2001 including:
(a) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2014and of its performance for the half-year ended on that date; and
(b) complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations
Regulations 2001
BDO Audit (WA) Pty Ltd
Dean Just
Director
Perth, 27 February 2015
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