december 2016 quarterly report - asx · 1/25/2017 · spookfish limited | 5 turner avenue,...

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Spookfish Limited | 5 Turner Avenue, Technology Park, Bentley WA 6102 | Bentley DC, PO Box 1103, Bentley WA 6983

www.spookfish.com | ABN 24 123 511 017

25!January!2017!

December 2016 Quarterly Report!

Highlights!for!the!quarter!ended!31!December!2016!

!! Revised!specifications!of!the!first!release!EagleView!system!resulting!in!a!more!flexible,!higher!performance!platform!for!North!American!operations!and!an!accelerated!rollout.!

!! EagleView! and! Spookfish! are! collaborating! extensively! on! the! development! and!refinement! of! new! technologies! that! improve! the! capability! and! performance! of!Spookfish!technology.!

!! First!flight!of!the!EagleView!camera!system!took!place!successfully!with!the!camera!pod!having!no!perceptible!impact!on!aircraft!handling.!

!! CASA! phase! 1! conformity! verification! inspections! completed! with! CASA! and! the! FAA!cooperating!to!complete!the!certification!programme!as!quickly!as!possible.!

!! Significant! refinements! to! the! Spookfish! data! processing! system! in! preparation! for!commercial!launch!in!Australia!and!to!support!EagleView’s!North!American!operations.!

!! Three!new!Australian! Provisional! Patent! applications!were! filed,! further! strengthening!the!Company’s!broad!IP!portfolio!for!high!productivity,!high!resolution!aerial!surveying.!

!! Spookfish! received! clear! International! Preliminary! Report! on! Patentability! for! its! first!Patent!CoNoperation!Treaty!application.!

!! Subsequent! to!quarterNend,!worldNrenowned!photogrammetry!expert,!Dr.!Clive!Fraser,!validated!the!very!high!metric!integrity!and!geospatial!accuracy!of!the!Spookfish!system.!

!! A!strong!cash!position!was!maintained!with!$6.79!million!cash!at!bank!at!the!end!of!the!quarter,!and!ongoing!North!American!costs!largely!rebateable!from!EagleView.!

!Spookfish! Limited! (ASX:! SFI)! is! pleased! to! provide! the! following! commentary! regarding! its!activities!during!the!three!months!ended!31!December!2016.!!During! the! quarter,! Spookfish! made! significant! progress! in! relation! to! developing! and!commercialising!its!proprietary!next!generation!aerial!imaging!capture!technology!in!Australia!and!North!America.!!Progress! meetings! in! Perth,! Australia,! between! Spookfish! and! senior! executives! from!EagleView!Technologies,!Inc.!(“EagleView”),!our!North!American!partner,!resulted!in!EagleView!requesting!an!upgrade!to!the!first!article!to!be!delivered.!These!changes!have!been!integrated!into!the!flight!test!schedule!and!will!result!in!delivery!of!a!more!productive!system!for!launch!in!both!North!America!and!Australia!than!was!originally!anticipated.!!

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EagleView!and!Spookfish!have!also!continued!to!collaborate!extensively!on!the!development!of!new!technologies!that!improve!the!capability!and!performance!of!Spookfish!technology!and!accelerate!the!Spookfish!development!roadmap.!By!working!closely!with!EagleView,!Spookfish!will! be! able! to! improve! the! capture! performance! and! reduce! technical! risks! in! future!generation!systems.!!Prior!to!Christmas,!Spookfish!completed!the!first!flight!of! its!next!generation!camera!pod!–!a!major!project!milestone.!This!flight!indicated!that!the!aircraft!had!no!obvious!unsafe!handling!or! performance! characteristics! was! used! to! calibrate! the! flight! test! data! logging!instrumentation! used! for! recording! aircraft! speed,! position,! altitude,! engine! parameters,!control!forces!and!positions!and!aircraft!orientation.!!

!!This! first! flight! also! signalled! the! beginning! of! the! flight! test! programme! to! demonstrate!compliance!with! both! Australian! and! US! certification! requirements.! The! Supplemental! Type!Certificate! (“STC”)! approval! is! sought! from! Civil! Aviation! Safety! Authority! (“CASA”)! with!oversight!of!the!programme!by!the!United!States’!Federal!Aviation!Authority!(“FAA”)!to!allow!an!almost!concurrent!approval!by!both!regulators.!!Concurrent!with!certification!flight!testing,!the!camera!system!also!began!extensive!testing!on!the! bench! to! verify! all! control! system! and! hardware! components.! This! system! is! assembled!into! a! second! camera! pod! which! will! be! the! first! system! delivered! to! EagleView.! The! pod!currently!being!used! for! flight! testing!will! ultimately!be!used!commercially! in!Australia!upon!completion!of!certification!testing.!!!The! onNaircraft! conformity! inspection! of! the! structural! and! aerodynamic! modifications! was!also! completed! during! the! quarter.! This! very! detailed! conformity! inspection! process! is!performed!by!CASA! to!ensure! the!asNbuilt! configuration!conforms!exactly! to! the!design!data!submitted!for!approval.!This!is!the!last!of!the!conformity!inspections!for!the!external!structure!and!attaching!elements!of!the!system!allowing!the!flight!testing!to!commence.!!Spookfish! is! very! pleased! with! the! response! of! CASA! and! the! FAA! in! this! complex! dualNjurisdiction!certification!process!with!both! regulators!and!consultants!working! to!ensure! this!project!is!moved!through!the!bilateral!Supplemental!Type!Certificate!(“STC”)!approval!process!between!Australia!and!the!United!States!as!quickly!as!possible.!

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Significant!refinements!to!the!Spookfish!data!processing!system!were!also!undertaken!during!the!quarter!in!preparation!for!commercial!launch,!resulting!in!the!ability!to!produce!very!high!metric! quality! aerial! triangulation! solutions! and! meet! the! output! product! accuracy!requirements!required!for!a!diverse!customer!base.! !Significant!enhancements!to!the!system!were!also!made!to!provide!support!for!EagleView’s!operation!of!the!Spookfish!camera!system.!!Early! in!the!quarter,!Spookfish!announced!the!filing!of!three!additional!Australian!Provisional!Patent! applications,! further! strengthening! the! Company’s! broad! IP! portfolio! for! high!productivity,! high! resolution! aerial! surveying.! The! filing! of! these! applications! was! a! key!milestone!towards!enabling!commercialisation!and!reflects!Spookfish’s!endNtoNend!strategy!for!optimising!the!entire!aerial!surveying!value!chain.!!Spookfish!also! received!a!clear! ‘International!Preliminary!Report!on!Patentability’! for! its! first!Patent!CoNoperation!Treaty!application!with!the!examiner!testifying!that!in!their!view!all!claims!for!the!application!are!patentable,!with!all!claims!being!novel,!containing!an!inventive!step!and!having!industrial!applicability,!opening!the!doorway!for!international!patent!protection!on!this!key!enabling!technology!for!high!productivity!wide!area!surveying.!!Subsequent! to! the! end! of! the! quarter,! worldNrenowned! photogrammetry! expert,! Dr.! Clive!Fraser,! validated! the! very! high! metric! integrity! and! geospatial! accuracy! of! the! Spookfish!system.!Dr.!Fraser’s!report!confirmed!that!the!metric!performance!targets!have!been!beaten!by! a! significant!margin! and! confirmed! that! the! level! of! accuracy! achieved!means! Spookfish!imagery!can!be!reliably!used!for!precision!mapping!tasks.!!Spookfish!maintains!a!strong!cash!position!of!$6.79!million!despite!a!significant!investment!in!equipment!during!the!quarter,!in!preparation!for!a!dual!launch!in!Australia!and!North!America.!Increased!spending!going! forward!mostly! relates! to! the!scaling!up!of!production!systems! for!North!America,!which!is!largely!rebateable!from!EagleView.!!!!For!more!information,!please!contact:!Jason!Marinko!!Executive!Chairman!+61!402!032!876!jason.marinko@spookfish.com!!!

Ronn!Bechler!Investor!Relations,[email protected]!!

About&Spookfish&Spookfish! Limited! (ASX:! SFI)! is! an! Australian! listed! public! company! focused! on! the! development! and!commercialisation! of! premium!next! generation!geospatial! imagery! products! and! services.! ! By! starting!from!a!clean!sheet!and!disregarding!what!was!thought!impossible,!Spookfish’s!revolutionary!technology!enables!rapid! imaging!of!entire!countries! in!high!resolution!from!a!multitude!of!angles!at!a!fraction!of!the! cost! of! contemporary! systems.! ! Spookfish! aims! to! use! these! capabilities! to! make! it! easy! for!organisations!of!all!sizes!to!gain!access!to!premium!imagery!content!and!pervasive!3D!models!allowing!concise,!accurate!and!cost!effective!decisionImaking.!!

In! May! 2016,! Spookfish! entered! into! long! term! exclusive! licence,! royalty! and! equity! participation!agreements!with!EagleView!Technologies!Inc,!a!North!American!leader!in!aerial!imagery,!data!analytics!and!GIS!solutions,!to!use!Spookfish!technology!in!North!America.!

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Appendix(4C(( Quarterly(report(for(entities(subject(to(Listing(Rule(4.7B(

+"See"chapter"19"for"defined"terms"1"September"2016" " Page"1"

+Rule"4.7B"

Appendix(4C(

Quarterly(report(for(entities(subject(to(Listing(Rule(4.7B(Introduced"31/03/00""Amended"30/09/01,"24/10/05,"17/12/10,"01/09/16"

"

Name(of(entity(

Spookfish"Limited"

ABN( ( Quarter(ended((“current(quarter”)(

24"123"511"017" " 31"December"2016"

"

Consolidated(statement(of(cash(flows( Current(quarter($A’000(

Year(to(date((((((((((((((12(months)($A’000(

1.( Cash(flows(from(operating(activities(

1,374" 2,097"1.1" Receipts"from"customers"

1.2" Payments"for"

(359)" (2,286)"" (a)" research"and"development"

" (b)" product"manufacturing"and"operating"costs"

(1,573)" (3,017)"

" (c)" advertising"and"marketing" (123)" (357)"

" (d)" leased"assets" N" (39)"

" (e)" staff"costs" (1,200)" (3,540)"

" (f)" administration"and"corporate"costs" (53)" (444)"

1.3" Dividends"received"(see"note"3)" N" N"

1.4" Interest"received" 26" 132"

1.5" Interest"and"other"costs"of"finance"paid" (8)" (8)"

1.6" Income"taxes"paid" N" N"

1.7" Government"grants"and"tax"incentives" 2,440" 2,440"

1.8" Other"(provide"details"if"material)" N" N"

1.9( Net(cash(from(/((used(in)(operating(activities(

524( (5,022)(

"

2.( Cash(flows(from(investing(activities(

(662)" (1,448)"

2.1" Payments"to"acquire:"

" (a)" property,"plant"and"equipment"

" (b)" businesses"(see"item"10)" N" N"

" (c)" investments" N" N"

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" (d)" intellectual"property" N" N"

" (e)" other"nonNcurrent"assets" N" N"

2.2" Proceeds"from"disposal"of:"

N" N"" (a)" property,"plant"and"equipment"

" (b)" businesses"(see"item"10)" N" N"

" (c)" investments" N" N"

" (d)" intellectual"property" N" N"

" (e)" other"nonNcurrent"assets" N" N"

2.3" Cash"flows"from"loans"to"other"entities" N" N"

2.4" Dividends"received"(see"note"3)" N" N"


2.6( Net(cash(from(/((used(in)(investing(activities(

(662)( (1,448)(

"

3.( Cash(flows(from(financing(activities(

N" N"3.1" Proceeds"from"issues"of"shares"

3.2" Proceeds"from"issue"of"convertible"notes" N" 6,003"

3.3" Proceeds"from"exercise"of"share"options" 21" 561"

3.4" Transaction"costs"related"to"issues"of"shares,"convertible"notes"or"options"

N" N"

3.5" Proceeds"from"borrowings" N" N"

3.6" Repayment"of"borrowings" N" N"

3.7" Transaction"costs"related"to"loans"and"borrowings"

N" N"

3.8" Dividends"paid" N" N"


3.10( Net(cash(from(/((used(in)(financing(activities(

21( 6,564(

"

4.( Net(increase(/((decrease)(in(cash(and(cash(equivalents(for(the(period(

6,905" 6,694"4.1" Cash"and"cash"equivalents"at"beginning"of"

quarter/year"to"date"

4.2" Net"cash"from"/"(used"in)"operating"activities"(item"1.9"above)"

524" (5,022)"

4.3" Net"cash"from"/"(used"in)"investing"activities"(item"2.6"above)"

(662)" (1,448)"

4.4" Net"cash"from"/"(used"in)"financing"activities"(item"3.10"above)"

21" 6,564"

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4.5" Effect"of"movement"in"exchange"rates"on"cash"held"

N" "

4.6( Cash(and(cash(equivalents(at(end(of(quarter(

6,788( 6,788(

"

5.( Reconciliation(of(cash(and(cash(equivalents(at"the"end"of"the"quarter"(as"shown"in"the"consolidated"statement"of"cash"flows)"to"the"related"items"in"the"accounts(

Current(quarter($A’000(

Previous(quarter($A’000(

5.1" Bank"balances" 1,788" 1,905"

5.2" Call"deposits" 5,000" 5,000"

5.3" Bank"overdrafts" N" N"

5.4" Other"(provide"details)" N" N"

5.5( Cash(and(cash(equivalents(at(end(of(quarter((should(equal(item(4.6(above)(

(

6,788(

(

6,905(

"

6.( Payments(to(directors(of(the(entity(and(their(associates( Current(quarter($A'000(

6.1" Aggregate"amount"of"payments"to"these"parties"included"in"item"1.2" 161"

6.2" Aggregate"amount"of"cash"flow"from"loans"to"these"parties"included"in"item"2.3"

N"

6.3" Include"below"any"explanation"necessary"to"understand"the"transactions"included"in"items"6.1"and"6.2"

Payments"for"director"remuneration."""

"

7.( Payments(to(related(entities(of(the(entity(and(their(associates(

Current(quarter($A'000(

7.1" Aggregate"amount"of"payments"to"these"parties"included"in"item"1.2" 1,274"

7.2" Aggregate"amount"of"cash"flow"from"loans"to"these"parties"included"in"item"2.3"

N"

7.3" Include"below"any"explanation"necessary"to"understand"the"transactions"included"in"items"7.1"and"7.2"

Payments"for"consulting,"aeronautical"engineering"and"support"services"provided"by"Innovaero"Pty"Ltd"and"Structured"Design"Pty"Ltd,"companies"in"which"Michael"von"Bertouch"(Strategic"Operations"Director"and"director"of"wholly"controlled"entity"Spookfish"Global"Operations"Pty"Ltd)"has"a"beneficial"interest."""

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8.( Financing"facilities(available"Add"notes"as"necessary"for"an"understanding"of"the"position(

Total(facility(amount(at(quarter(end(

$A’000((

Amount(drawn(at(quarter(end($A’000(

8.1" Loan"facilities" N" N"

8.2" Credit"standby"arrangements" N" N"

8.3" Other"(Convertible"Notes)" 6,003" 6,003"

8.4" Include"below"a"description"of"each"facility"above,"including"the"lender,"interest"rate"and"whether"it"is"secured"or"unsecured."If"any"additional"facilities"have"been"entered"into"or"are"proposed"to"be"entered"into"after"quarter"end,"include"details"of"those"facilities"as"well."

On"31"May"2016"100,045,583"convertible"notes"with"a"face"value"of"6"cents"each"were"issued"to"Eagleview"Technologies"Inc."(‘Eagleview’)"as"part"of"a"strategic"partnership"arrangement"entered"into"with"that"organisation."The"notes"are"interest"free"and"do"not"carry"voting"or"dividend"entitlements."They"will"each"convert"into"one"ordinary"share"in"Spookfish"Limited"upon"Eagleview"accepting"delivery"of"the"initial"data"capture"system,"which"is"expected"to"be"delivered"in"March/April"2017."

"

9.( Estimated(cash(outflows(for(next(quarter( $A’000(

9.1" Research"and"development" 53"

9.2" Product"manufacturing"and"operating"costs" 1,652"

9.3" Advertising"and"marketing" 143"

9.4" Leased"assets" N"

9.5" Staff"costs" 1,218"

9.6" Administration"and"corporate"costs" 172"

9.7" Other"(Capital"equipment)" 703"

9.8( Total(estimated(cash(outflows**( 3,941(

**(Note:(Additionally,"cash"inflows"of"approximately"$1,300,000"are"expected"for"the"next"quarter,"consisting"primarily"of"construction"progress"payments"for"data"capture"systems"being"manufactured"for"Eagleview"Technologies"Inc."for"use"in"North"America."

10.( Acquisitions(and(disposals(of(business(entities((items(2.1(b)(and(2.2(b)(above)(

Acquisitions( Disposals(

10.1" Name"of"entity" N" N"

10.2" Place"of"incorporation"or"registration"

N" N"

10.3" Consideration"for"acquisition"or"disposal"

N" N"

10.4" Total"net"assets" N" N"

10.5" Nature"of"business" N" N"

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Compliance(statement(

1" This"statement"has"been"prepared"in"accordance"with"accounting"standards"and"policies"which"comply"with"Listing"Rule"19.11A."

2" This"statement"gives"a"true"and"fair"view"of"the"matters"disclosed."

" " " " " " " " " 25"January"2017"

Sign"here:"" ............................................................" " Date:"............................................."(Director/Company"secretary)"

"

Print"name:"" Jason(Marinko(

"

Notes(

1." The"quarterly" report"provides"a"basis" for" informing" the"market"how" the"entity’s"activities"have"been"financed"for" the"past"quarter"and"the"effect"on" its"cash"position."An"entity" that"wishes"to"disclose"additional"information"is"encouraged"to"do"so,"in"a"note"or"notes"included"in"or"attached"to"this"report."

2." If"this"quarterly"report"has"been"prepared"in"accordance"with"Australian"Accounting"Standards,"the"definitions"in,"and"provisions"of,"AASB"107:"Statement"of"Cash"Flows"apply"to"this"report."If"this"quarterly"report"has"been"prepared"in"accordance"with"other"accounting"standards"agreed"by"ASX"pursuant"to"Listing"Rule"19.11A,"the"corresponding"equivalent"standard"applies"to"this"report."

3." Dividends"received"may"be"classified"either"as"cash"flows"from"operating"activities"or"cash"flows"from"investing"activities,"depending"on"the"accounting"policy"of"the"entity."

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december 2016 quarterly report - asx · 1/25/2017 · spookfish limited | 5 turner avenue,...

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