Changes in State of Affairs
During the financial year there was no significant change in the state of affairs of the consolidated entity other than that referred to in this report or the financial statements or notes thereto.
Financial Position
The net assets of the economic entity have increased by $1,866,000 from 30 June 2005 to $5,835,000 in 2006. The increase has largely resulted from the following factors:
The economic entity’s improved financial position has allowed it to invest in developing new products while maintaining a healthy working capital ratio. The group’s working capital, being current assets less current liabilities, is $999,000 at 30 June 2006.
The Directors believe the group is in a strong and stable financial position to expand and grow its current operations.
During the financial year there was no significant change in the state of affairs of the consolidated entity other than that referred to in this report or the financial statements or notes thereto.
Financial Position
The net assets of the economic entity have increased by $1,866,000 from 30 June 2005 to $5,835,000 in 2006. The increase has largely resulted from the following factors:
- Improved operating performance of the company.
- Revaluation of the company’s financial assets to fair value with a current book value of $2,618,000.
- Recognition of an additional deferred tax asset of $483,000 from past operating losses.
- Conversion of a $1,000,000 loan note to equity at 30 June 2006.
The economic entity’s improved financial position has allowed it to invest in developing new products while maintaining a healthy working capital ratio. The group’s working capital, being current assets less current liabilities, is $999,000 at 30 June 2006.
The Directors believe the group is in a strong and stable financial position to expand and grow its current operations.