Announcement PDF Resonance Health Limited Appendix 4D Half year report Period ended 31 December 2015 RESONANCE HEALTH LIMITED ABN 96 006 762 492 Appendix 4D Half year report for the half year ended 31 December 2015 (previous corresponding period to 31 December 2014) Results for announcement to the market Change 31 Dec 2015 $’000 31 Dec 2014 $’000 Up 1% 1,300 1,288 (Loss)/Profit from ordinary activities after tax attributable to members Down 105% (22) 448 (Loss)/Profit for the period attributable to members Down 105% (22) 448 31 Dec 2015 31 Dec 2014 0.68 0.70 Revenues from ordinary activities Net tangible assets per security (cents) Comments The Company is pleased to report:         Sales revenue increased by 17% compared to the corresponding previous half-year Analysis volumes increased by 6% compared to the corresponding previous half-year Eleven new FerriScan® sites were established in the July-December 2015 period Together with the clinical community Resonance Health celebrated the delivery of 30,000 patient FerriScans worldwide to date St Mary’s Hospital in London achieved the fantastic milestone of providing over 1,000 FerriScans to their patients Four new team members were employed in new roles in the half-year; in line with the Company’s commitment to continued growth Marketing efforts involved profiling our products at numerous high-profile global conferences Cash on hand - $2.4million 31st December 2015 (approximately $2.6million 25th September 2016) FerriScan® FerriScan is currently established in over in over 30 countries and is globally recognised as the gold standard method for the measurement of liver iron concentration (LIC) with over 30,000 FerriScans having been delivered to patients worldwide to date. As a result of ongoing efforts to achieve this gold-standard status the source of the FerriScan business has shifted towards routine clinical use. In particular, our key markets in the USA and UK saw significant growth in routine clinical use. Our collaborative programs with patient advocacy organisations and pharmaceutical companies continue to drive further demand for this test. To support further activities aimed at driving revenue, the Company is identifying new markets and will resource these opportunities as appropriate. The current focus is on the USA which represents a significant Resonance Health Limited Appendix 4D Half year report Period ended 31 December 2015 opportunity for FerriScan and we anticipate appointing an additional resource local to this market in the current quarter. Resonance Health is a sustainable Company and the additional revenue will support the development of new products. From an R&D perspective the Company continues to explore new areas where its technologies can be applied to assess iron in organs other than the liver. One such example is our collaboration in a pharmaceutical sponsored study for the provision of iron assessments in bone marrow, which is relevant in patients with MDS and will potentially lead to further opportunities. HepaFat-Scan® HepaFat-Scan marketing has continued to focus on the development of strategic opportunities. These opportunities are centred on building awareness of the HepaFat-Scan test with Key-Opinion-Leaders (KOLs), profiling HepaFat-Scan by attending international conferences and the prestigious Liver Forum and engaging with pharmaceutical companies. Resonance Health is a member of the internationally based Liver Forum. The purpose of the forum is to provide an arena for clinicians, pharmaceutical companies, medical device companies and the FDA to hold open discussions on clinical trials and drug development. By participating in the Liver Forum, Resonance Health is able to create further awareness of HepaFat-Scan and our prototype technology to measure liver fibrosis, develop important relationships with KOLs and connections with pharmaceutical companies, and participate in guideline discussions amongst the members. In the next six months the Company will undertake and aim direct marketing at the liver surgeon community to encourage uptake of HepaFat-Scan as a tool to aid in liver resection planning. Liver surgeons have expressed initial interest in the test as the presence of liver fat has detrimental consequences for patient outcomes in the setting of liver resection for colorectal metastases. The primary focus of the Company’s HepaFat-Scan strategy is currently to participate in high profile clinical studies which will enhance clinical acceptance and uptake of the test, with the following studies currently underway: Paediatric Clinical Study - USA The study is being conducted by Dr Miriam Vos, KOL in paediatric fatty liver disease. Its focus is on children with non-alcoholic fatty liver disease (NAFLD), the objective is to evaluate whether HepaFat-Scan precisely and reproducibly quantifies hepatic steatosis in children. The results of the study aim to establish HepaFatScan as a non-invasive replacement for biopsy that benefits children by reducing risk and improving diagnosis. The outcomes could help clinicians develop protocols for the routine clinical use of HepaFat-Scan in managing paediatric patients with NAFLD. Recruitment is on track, with over 20 out of 50 patients recruited, with the study anticipated to be completed by June 2016. Preliminary results are expected December 2016. Liver Surgery Study - Australia The application of HepaFat-Scan is currently also being investigated in an Australian-based, multi-centre, randomised clinical study. The study will compare the clinical outcomes of patients with colorectal metastases in the liver who receive a HepaFat-Scan test before surgery with those who do not receive a HepaFat-Scan. The clinical outcomes for the two groups of patients will be followed for a period of 6 months after the surgery. The trial design hypothesises that knowledge about the fat content in the liver will help liver surgeons optimise their surgical plan resulting in better clinical outcomes for the patient. Recruitment has commenced with the first study sites having been established in Western Australia. The recruitment phase will take 12 - 18 months with results expected a further 6 – 12 months thereafter. London Marathon Study – United Kingdom This is a high profile study where HepaFat-Scan will be used to measure the volume fraction of fat in the livers of 120 marathon runners. The study is a collaboration between Resonance Health and Barts Health, sponsored by St George’s University of London. It will examine any relationship between intense exercise and liver fat fraction alongside cardiac function. The addition of HepaFat-Scan will provide valuable new information in this context. Participants in the study will be scanned twice, with the first round of scans having been completed. Final scans will be performed after the London Marathon in April 2016. Results are expected 6 – 12 months thereafter. Resonance Health Limited Appendix 4D Half year report Period ended 31 December 2015 Hyperferritinaemia Study – United Kingdom Resonance Health and a respected UK hospital are collaborating to evaluate whether HepaFat-Scan in conjunction with FerriScan provides sufficient clinical information to determine the aetiology in patients presenting with unexplained hyperferritinaemia. An additional objective of the study is to determine whether HepaFat-Scan may assist in the subsequent clinical management of patients. A number of additional study opportunities are also being investigated, including the application of HepaFatScan in a patient cohort with diabetes. Pipeline products Resonance Health continues its commitment to diversifying its product offerings and find opportunities to add value to existing products. The objective is to develop a broader suite of tools which will enhance market uptake. Research and development has continued to focus on the non-invasive detection and measurement of liver fibrosis. The Company presented the results of our first prototype fibrosis measurement technology at the Annual Liver Meeting (AASLD) in November 2015. As a result of this we are now in active discussions with pharmaceutical companies interested in this technology. State-of-the-art computer algorithms are being applied to clinical magnetic resonance image data that were obtained in a variety of studies to develop the fibrosis technology. Additional data are being collected in ongoing studies to assist in testing and validation of newly developed algorithms. The Company will also continue its collaboration with CSIRO in fibrosis research and see potential to establish a long-term partnership with this highly respected research institute. To leverage recent advances in the field of image analysis algorithms the Company anticipates expanding on its R&D resources as we explore potential different applications of this technology. In addition to this, Resonance Health is exploring collaboration opportunities with other research institutes and pharmaceutical companies to further develop and commercialise other new products. Resonance Health Limited (ABN 96 006 762 492) Half-Year Financial Report 31 December 2015 -1- Resonance Health Limited Corporate Directory Directors Dr Martin Blake Chairman/Non-executive Director Mr Simon Panton Non-executive Director Dr Jason Loveridge Non-executive Director Company secretary Mr Adrian Bowers Website and e-mail address www.resonancehealth.com Email:info@resonancehealth.com Postal address PO Box 1135 Nedlands WA 6909 Stock exchange listing Resonance Health Limited shares are listed on the Australian Securities Exchange. ASX Code: RHT Registered office and Principal place of business 278 Stirling Highway Claremont WA 6010 Telephone: 61 8 9286 5300 Facsimile: 61 8 9286 1179 Share registry Advanced Share Registry Ltd 150 Stirling Highway Nedlands WA 6009 Tel: +61 8 9389 8033 Fax: +61 8 9389 7871 Bankers National Australia Bank Limited Auditors HLB Mann Judd Level 4 130 Stirling Street Perth WA 6000 Contents Solicitors Steinepreis Paganin Level 4 16Milligan Street Perth WA 6000 Page Directors’ Report 2 Auditor’s Independence Declaration 4 Condensed Statement of Comprehensive Income 5 Condensed Statement of Financial Position 6 Condensed Statement of Changes in Equity 7 Condensed Statement of Cash Flows 8 Notes to the Condensed Financial Statements 9 Directors’ Declaration 14 Independent Auditor’s Review Report 15 -2- Resonance Health Limited DIRECTORS’ REPORT The directors submit the financial report of the Group for the half-year ended 31 December 2015. In order to comply with the provisions of the Corporations Act 2001, the directors report as follows: Directors The names of directors who held office during or since the end of the half-year and until the date of this report are noted below. Directors were in office for this entire period unless otherwise stated. Dr Martin Blake Non-executive Director – Chairman (currently acting Executive Chairman) Mr Simon Panton Non-executive Director Dr Jason Loveridge Non-executive Director Review of Operations Resonance Health is a medical device company developing innovative imaging technology for the assessment of human disease. The Company’s expertise is in providing quantitative measurements using MRI technology replacing the need for invasive procedures such as a biopsy. ® Resonance Health’s lead product on market generating revenue is FerriScan , for the measurement of iron overload. FerriScan is provided to the market as an image analysis service where radiology facilities in over 30 countries upload data to a secure web facility for analysis and reporting by Resonance Health. Resonance Health gained FDA clearance for its new product HepaFat-Scan® in December 2013, for the measurement of fatty liver to address the sizable fatty liver disease market. Resonance Health is embarking on commercialisation of the product. Research and development work continues on developing an MRI based test to quantify liver fibrosis. ® The principal activity of Resonance Health during the period was the delivery of FerriScan image analysis services for the clinical management of patients with iron overload conditions. This also includes cardiac iron overload assessments in some countries. Our central image analysis facility provides a range of services to the pharmaceutical industry requiring imaging core lab services for their clinical trials. Financial and Operational Summary:  Net loss reported for the half-year was $21,728 compared to a profit of $448,031 in the previous corresponding half-year. Sales revenue increased by 17% to $1,300,403 from $1,112,429 in the previous corresponding half-year due to the number of scans increasing by 6% and the effects of the lower Australian dollar, however other income was significantly reduced as there was no receipt of government grants compared to $135,000 in the previous corresponding half-year. Operating expenses (excluding foreign exchange) were up by 25% or $290,500 higher compared to the previous corresponding half year. The increased expenses are due to increased marketing and travel activities and increased research and development spend on Fibrosis, FerriScan and HepaFat. All other expenses remain stable compared to the corresponding half-year. Income tax benefit of $98,325 is the R&D tax incentive benefit for eligible expenditure conducted by the company for the financial year ended 30 June 2015.  Research and development expenditure for the half-year was $238,617, of which $132,708 was capitalised and $105,909 was expensed. Research and development expenditure was primarily associated with the development of a liver fibrosis imaging test and liver fat imaging testing.  Intangible assets, representing capitalised development expenditure, totalled $1,666,736 at the end of the halfyear, compared to $1,601,442 at the end of the 30 June 2015 financial year.  Resonance Health has no debt and $2,405,387 in cash and equivalents at the end of the half-year, compared to $2,797,203 at 30 June 2015.  The reported cash used in operating activities was higher than in the previous year, due to increased spend on marketing and travel and research and development. -3- Resonance Health Limited Auditor’s Independence Declaration Section 307C of the Corporations Act 2001 requires our auditors, HLB Mann Judd, to provide the directors of the company with an Independence Declaration in relation to the review of the interim financial report. This Independence Declaration is set out on page 4 and forms part of this directors’ report for the half-year ended 31 December 2015. This report is signed in accordance with a resolution of the Board of Directors made pursuant to s.306(3) of the Corporations Act 2001. Dr Martin Blake Chairman Dated this 25th day of February 2016. -4 - RESONANCE HEALTH LIMITED AUDITOR’S INDEPENDENCE DECLARATION As lead auditor for the review of the consolidated financial report of Resonance Health Limited for the half-year ended 31 December 2015, I declare that to the best of my knowledge and belief, there have been no contraventions of: a) the auditor independence requirements of the Corporations Act 2001 in relation to the review; and b) any applicable code of professional conduct in relation to the review. Perth, Western Australia 25 February 2016 L Di Giallonardo Partner HLB Mann Judd (WA Partnership) ABN 22 193 232 714 Level 4, 130 Stirling Street Perth WA 6000. PO Box 8124 Perth BC 6849 Telephone +61 (08) 9227 7500. Fax +61 (08) 9227 7533. Email: hlb@hlbwa.com.au. Website: http://www.hlb.com.au Liability limited by a scheme approved under Professional Standards Legislation HLB Mann Judd (WA Partnership) is a member of International, a worldwide organisation of accounting firms and business advisers. Resonance Health Limited -5- CONDENSED STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2015 Consolidated Notes 31 December 2015 $ 31 December 2014 $ Sales revenue 2 1,300,403 1,112,429 Other income 2 26,624 175,159 Revenue 1,327,027 1,287,588 Employee benefits expense (658,465) (626,245) (3,198) (27,300) (105,909) (51,530) Depreciation expense (6,857) (7,325) Amortisation expense (67,414) (58,834) Marketing and travel (347,594) (144,283) Statutory and compliance (64,741) (59,194) Foreign exchange gain/(loss) (17,108) 155,599 - (15,264) Other expenses (175,794) (149,497) (Loss)/profit before income tax (120,053) 303,715 98,325 144,316 (21,728) 448,031 - (61,916) - (37,314) - (99,230) (21,728) 348,801 Consulting and professional services Research and development Due diligence expense Income tax benefit (Net loss)/profit for the half-year 3 Other comprehensive income Items that may be reclassified to profit or loss Exchange differences arising on translation of foreign operations Exchange differences arising on translation of foreign loan Other comprehensive loss for the half-year, net of tax Total comprehensive (loss)/income for the half-year Basic (loss)/earnings per share from continuing operations (cents per share) The accompanying notes form part of these financial statements (0.01) 0.12 Resonance Health Limited -6- CONDENSED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2015 Consolidated Notes 31 December 2015 $ 30 June 2015 $ Assets Current Assets Cash and cash equivalents 2,405,387 2,797,203 Trade and other receivables 1,116,128 662,177 Other assets Total Current Assets 102,170 42,304 3,623,685 3,501,684 Non-Current Assets Plant and equipment 33,087 27,216 1,666,736 1,601,442 62,106 62,106 Total Non-Current Assets 1,761,929 1,690,764 Total Assets 5,385,614 5,192,448 340,182 329,158 Intangible assets 4 Other assets Liabilities Current Liabilities Trade and other payables Provisions 34,853 44,070 Other liabilities 627,019 413,932 Total Current Liabilities 1,002,054 787,160 Total Liabilities 1,002,054 787,160 Net Assets 4,383,560 4,405,288 69,406,199 69,406,199 (204,296) (204,296) (64,818,343) (64,796,615) 4,383,560 4,405,288 Equity Issued capital Reserves Accumulated losses Total Equity The accompanying notes form part of these financial statements 5 Resonance Health Limited -7- CONDENSED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2015 Consolidated Foreign Currency Translation Option Reserve Reserve Issued Capital $ $ $ Accumulated Losses Total Equity $ $ (64,796,615) 4,405,288 Balance at 1 July 2015 69,406,199 Net loss for the half-year - - - (21,728) (21,728) Other comprehensive income for the half-year, net of tax - - - - - Total comprehensive loss for the half-year - - - (21,728) (21,728) (270,580) 66,284 Balance at 31 December 2015 69,406,199 (270,580) 66,284 (64,818,343) 4,383,560 Balance at 1 July 2014 68,703,510 (171,350) 66,284 (65,259,849) 3,338,595 Net profit for the half-year - - - 448,031 448,031 Other comprehensive loss for the half-year, net of tax - (99,230) - - (99,230) Total comprehensive income for the half-year - (99,230) - 448,031 348,801 Shares issued during the period 690,689 - - - 690,689 Balance at 31 December 2014 69,394,199 (270,580) 66,284 (64,811,818) 4,378,085 The accompanying notes form part of these financial statements -8- Resonance Health Limited CONDENSED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2015 Consolidated 31 December 2015 $ 31 December 2014 $ Inflows/(Outflows) Cash flows from operating activities Receipts from customers 948,635 931,196 (1,413,760) (1,195,490) - 135,000 Interest received 25,948 37,672 R&D taxation credit 186,231 - Net cash used in operating activities (252,946) (91,622) Payments for plant and equipment (12,728) (4,059) Payments for intangible assets (132,708) (76,084) Net cash used in investing activities (145,436) (80,143) Share issue - 650,000 Share issue costs - (18,687) Net cash provided by financing activities - 631,313 (398,382) 459,548 6,566 27,071 Cash and cash equivalents at beginning of half-year 2,797,203 2,097,607 Cash and cash equivalents at end of half-year 2,405,387 2,584,226 Payments to suppliers and employees Grants and awards received Cash flows from investing activities Cash flows from financing activities Net (decrease)/increase in cash and cash equivalents Foreign exchange differences on cash balances The accompanying notes form part of these financial statements -9- Resonance Health Limited NOTES TO THE CONDENSED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2015 NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES Statement of Compliance These interim consolidated financial statements are a general purpose financial report prepared in accordance with the requirements of the Corporations Act 2001, applicable accounting standards including AASB 134 ‘Interim Financial Reporting’, Accounting Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board (‘AASB’). Compliance with AASB 134 ensures compliance with IAS 34 ‘Interim Financial Reporting’. This condensed half-year report does not include full disclosures of the type normally included in an annual financial report. Therefore, it cannot be expected to provide as full an understanding of the financial performance, financial position and cash flows of the Group as in the full financial report. It is recommended that this half-year financial report be read in conjunction with the annual financial report for the year ended 30 June 2015 and any public announcements made by Resonance Health Limited and its subsidiaries during the half-year in accordance with continuous disclosure requirements arising under the Corporations Act 2001 and the ASX Listing Rules. Basis of Preparation The half-year financial report has been prepared on a historical cost basis. Cost is based on the fair value of the consideration given in exchange for assets. The Company is domiciled in Australia and all amounts are presented in Australian dollars, unless otherwise noted. For the purpose of preparing the interim report, the half-year has been treated as a discrete reporting period. Accounting policies and methods of computation The accounting policies adopted and methods of computation are consistent with those of the previous financial year and corresponding half-year reporting period. These accounting policies are consistent with Australian Accounting Standards and with International Financial Reporting Standards. The Group has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board that are relevant to its operations and effective for the current half-year. Furthermore, the Directors have also reviewed all new Standards and Interpretations that have been issued but are not yet effective for the half-year ended 31 December 2015. As a result of this review the Directors have determined that there is no impact, material or otherwise, of the new and revised Standards and Interpretations on the Group and, therefore, no change is necessary to Group accounting policies. Significant accounting judgments and key estimates The preparation of half-year financial reports requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expense. Actual results may differ from these estimates. In preparing this half-year report the significant judgments made by management in applying the Group’s accounting policies and the key sources of estimation of uncertainty were the same as those that applied to the consolidated financial report for the year ended 30 June 2015. - 10 - Resonance Health Limited NOTES TO THE CONDENSED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2015 NOTE 2: REVENUE AND EXPENSES Consolidated Six months to Six months to 31 December 2015 $ 31 December 2014 $ 1,300,403 1,112,429 26,624 34,328 Grants and awards received - 135,000 Other revenue - 5,831 26,624 175,159 The following revenue items are relevant in explaining the financial performance for the half-year: (a) Sales revenue Sales to external customers (b) Other income Interest received NOTE 3: INCOME TAX BENEFIT The tax consolidated group has recognised a Research and Development Tax Incentive for the financial year ended June 2015 for the amount of $98,325. NOTE 4: INTANGIBLE ASSETS Consolidated Six months to Year ended 31 December 2015 $ 30 June 2015 $ Development expenditure At cost 1,979,205 1,846,497 Less: Accumulated amortisation (312,469) (245,055) Total development expenditure 1,666,736 1,601,442 1,601,442 1,563,284 Additions 132,708 159,210 Amortisation expense (67,414) (121,052) 1,666,736 1,601,442 Reconciliation of the carrying amounts of development expenditure is set out below: Carrying amount at the beginning of the period Carrying amount at the end of the period Development expenditure relates to costs incurred in developing MRI tools for the diagnosis and clinical management of human disease. Resonance Health Limited - 11 - NOTES TO THE CONDENSED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2015 NOTE 4: INTANGIBLE ASSETS (continued) During the half-year development continued to relate primarily to improvements to the FerriScan software technology, HepaFat tools and the development of liver fibrosis MRI diagnostic tool. The recoupment of development expenditure is dependent on the successful development and commercialisation or sale of the technology developed. The directors are required to assess at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists an estimate is made of the asset’s recoverable amount. Where the asset’s carrying value exceeds the estimated recoverable amount a provision for impairment is recognised. The Directors do not consider that there has been any indication that the asset may be impaired as at balance date. NOTE 5: ISSUED CAPITAL Consolidated 31 December 2015 $ 30 June 2015 $ Ordinary shares Issued and fully paid 69,406,199 69,406,199 Movement in ordinary shares Six months to 31 December 2015 Number of shares Balance at beginning of period $ Year to June 2015 Number of shares $ 401,566,203 69,406,199 386,541,784 68,703,510 Placement 15 September 2014 at $0.05 each - - 13,000,000 650,000 Equity raising fee settled by shares 30 September 2014 at $0.05 each - - 1,660,783 83,039 - 363,636 12,000 - - - (42,350) 401,566,203 69,406,199 401,566,203 69,406,199 Employee shares 31 March 2015 at $0.033 each Share capital issue costs Resonance Health Limited - 12 - NOTES TO THE CONDENSED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2015 NOTE 6: SEGMENT REPORTING The table below represents the revenue and profit/(loss) information regarding the segment information provided to the Chief Operating Decision Maker, which is the Board of Directors, for the half-years ended 31 December 2015 and 31 December 2014. Business segments The following tables present revenue and profit/(loss) information and certain asset and liability information regarding business segments for the half-years ended 31 December 2015 and 31 December 2014. The Group’s reporting segments are determined by the products and services provided. Internal reporting to the Board focuses on the following reporting segments:  Services – commercialisation of FerriScan and HepaFat Scan technology  Research and development – relating to MRI scanning and other technologies  Corporate Services Research and Development Corporate Total $ $ $ $ 31 December 2015 Sales revenue to external customers 1,300,403 - - 1,300,403 Interest received - - 26,624 26,624 Segment revenue 1,300,403 - 26,624 1,327,027 200,295 (105,909) (214,439) (120,053) 1,112,429 - - 1,112,429 135,000 - - 135,000 Other - - 5,831 5,831 Interest received - - 34,328 34,328 Segment revenue 1,247,429 - 40,159 1,287,588 417,172 (46,538) (66,919) 303,715 Segment profit/(loss) before taxation 31 December 2014 Sales revenue to external customers Grants received Segment profit/(loss) before taxation There are no changes in regards to the basis of reporting on segmentation or to the basis of reporting on segment profit/(loss) from the position at 30 June 2015. - 13 - Resonance Health Limited NOTES TO THE CONDENSED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2015 NOTE 7: CONTINGENT LIABILITIES There has been no change in contingent liabilities since the last annual reporting date. NOTE 8: EVENTS SUBSEQUENT TO REPORTING DATE No matters or circumstances have arisen since the end of the half-year which significantly affected or may significantly affect the operations of the Group, the results of those operations, or the state of affairs in future financial years. - 14 - Resonance Health Limited DIRECTORS’ DECLARATION In the opinion of the directors of Resonance Health Limited (“the company”): 1. 2. The attached financial statements and notes thereto are in accordance with the Corporations Act 2001 including: a. complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and b. giving a true and fair view of the Group’s financial position as at 31 December 2015 and of its performance for the half-year then ended. 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 signed in accordance with a resolution of the Board of Directors made pursuant to s.303(5) of the