ANNOUNCEMENT TO THE AUSTRALIAN STOCK EXCHANGE APPENDIX 4C QUARTERLY REPORT 31 DECEMBER 2004

Transcription

1 ANNOUNCEMENT TO THE AUSTRALIAN STOCK EXCHANGE APPENDIX 4C QUARTERLY REPORT 31 DECEMBER 2004 In accordance with the request of the Australian Stock Exchange I enclose a copy of for MIKOH Corporation Limited for the quarter ended 31 December Since my appointment as Chief Executive Officer of MIKOH in November 2004 I have been familiarizing myself with the Group s operations and technologies and have been impressed by the prospects and opportunities available to the Group. I am currently in the process of formulating the Business Plan for the commercialisation stage of MIKOH s products and look forward to reporting to shareholders in the near future. In respect of MIKOH s Statement of Cash Flows contained in the accompanying, I provide the following additional comments: 1. MIKOH s US operations continued to be both profitable and cash positive for the December 2004 quarter. The delivery of the first order of the new SST tag, as announced in August and amounting to approximately $200,000, was made during the December 2004 quarter. As TransCore s sales agents, 3M are continuing to drive market demand for Electronic Vehicle Registration products in territories outside the USA in particular Asia, Central America and South America. Further tag orders are expected from TransCore over the coming months. 2. Receipts from Digital Inkjet Printer sales from both Italy and China amounted to over $370,000 for the December 2004 quarter. Digital Inkjet Printer sales have been lower than expected in the first six months due to pricing pressures from primary competitor Kodak following its acquisition of ink jet printer supplier Scitex. Further orders are anticipated shortly from Australia and through MIKOH s partners in Europe and Asia. 3. No government incentives for research and development or export market development were received in the December 2004 quarter and all receipts were from trading activities. However, since the 31 December 2004 an R&D taxoffset concession amounting to $211,709 has been received. 4. As at 31 December 2004 the Company was in the process of finalising a private placement of shares of which $149,180 had been received prior to the end of the half year. A further amount of approximately $225,000 will be received shortly which will complete the issue of the private placement. 5. Since 31 December 2004 MIKOH has been restructured into three operating divisions: Sales and Marketing, Research and Development and Corporate Administration. This restructure provides MIKOH with a global sales focus of its Digital Marking and Security product set, it reinforces a single branded MIKOH, it consolidates its business units and it commits to a market driven Research and Development program that underwrites a longterm product set for the Company. In accordance with this restructure and global sales focus, Peter Anderson s sales and marketing contract with the Digital Inkjet Printer Division was concluded effective 31 st January 2005 and Mr. Keith Wannop appointed as Director Sales and Marketing for the Group. Dr. Peter Atherton is appointed as MIKOH s Chief Technology Officer of MIKOH s entire Digital Marking and Security products. A new website for the Company will be launched in early February. I look forward to reporting to you on further business developments over the coming months. Yours faithfully MIKOH Corporation Limited Matthew Blomfield Managing Director Date: 31 January 2005 MIKOH Corporation Limited ACN PO Box 5246 West Chatswood NSW 1515 Australia Telephone: Fax: mikoh@mikoh.com

2 Rule 4.7B Quarterly report for entities admitted on the basis of commitments Introduced 31/3/2000. Amended 30/9/2001 Name of entity MIKOH CORPORATION LIMITED ABN Quarter ended ( current quarter ) DECEMBER 2004 Consolidated statement of cash flows Current quarter Year to date Cash flows related to operating activities (6 months) 1.1 Receipts from customers 599,511 1,042, Payments for (a) staff costs (b) advertising and marketing (c) research and development (d) leased (e) other working capital (241,126) (46,542) (63,550) (299,953) (467,090) (66,701) (122,968) (670,617) 1.3 Dividends received 1.4 Interest and other items of a similar nature 1,454 2,896 received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material) (50,206) (281,492) Net operating cash flows 30/9/2001 Page 1

3 Current quarter Year to date (6 months) 1.8 Net operating cash flows (carried forward) (50,206) (281,492) Cash flows related to investing activities 1.9 Payment for acquisition of: (a) businesses (item 5) (b) equity investments (c) intellectual property (d) physical noncurrent (e) other noncurrent 1.10 Proceeds from disposal of: (a) businesses (item 5) (b) equity investments (c) intellectual property (d) physical noncurrent (e) other noncurrent (21,018) (21,018) 1.11 Loans to other entities 1.12 Loans repaid by other entities 1.13 Other (provide details if material) Net investing cash flows (21,018) (21,018) 1.14 Total operating and investing cash flows (71,224) (302,510) Cash flows related to financing activities 1.15 Proceeds from issues of shares, options, etc. 6, Proceeds from sale of forfeited shares 1.17 Proceeds from borrowings 1.18 Repayment of borrowings 1.19 Dividends paid 1.20 Other share private placement advance 149, ,180 Net financing cash flows 149, ,430 Net increase (decrease) in cash held 77,956 (147,080) 1.21 Cash at beginning of quarter/year to date 242, , Exchange rate adjustments to item 1.20 (7,630) (8,373) 1.23 Cash at end of quarter 312, ,928 Page 2 30/9/2001

4 Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities Current quarter 1.24 Aggregate amount of payments to the parties included in item 1.2 (being payments to executive directors during the quarter) 89, Aggregate amount of loans to the parties included in item Explanation necessary for an understanding of the transactions N/A Noncash financing and investing activities 2.1 Details of financing and investing transactions which have had a material effect on consolidated and liabilities but did not involve cash flows N/A 2.2 Details of outlays made by other entities to establish or increase their share in businesses in which the reporting entity has an interest N/A Financing facilities available Add notes as necessary for an understanding of the position. (See AASB 1026 paragraph 12.2). Amount available Amount used 3.1 Loan facilities NIL N/A 3.2 Credit standby arrangements NIL N/A 30/9/2001 Page 3

5 Reconciliation of cash Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows. Current quarter Previous quarter 4.1 Cash on hand and at bank 312, , Deposits at call 4.3 Bank overdraft 4.4 Other (provide details) Total: cash at end of quarter (item 1.22) 312, ,602 Acquisitions and disposals of business entities Acquisitions (Item 1.9(a)) Disposals (Item 1.10(a)) 5.1 Name of entity N/A N/A 5.2 Place of incorporation or registration 5.3 Consideration for acquisition or disposal 5.4 Total net 5.5 Nature of business Compliance statement 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act (except to the extent that information is not required because of note 2) or other standards acceptable to ASX. 2 This statement does give a true and fair view of the matters disclosed. Sign here:... Date: 31/01/2005 (Director) Print name: MATTHEW BLOMFIELD Page 4 30/9/2001

6 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 wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report. 2. The definitions in, and provisions of, AASB 1026: Statement of Cash Flows apply to this report except for the paragraphs of the Standard set out below. 6.2 reconciliation of cash flows arising from operating activities to operating profit or loss 9.2 itemised disclosure relating to acquisitions 9.4 itemised disclosure relating to disposals 12.1(a) policy for classification of cash items 12.3 disclosure of restrictions on use of cash 13.1 comparative information 3. Accounting Standards. ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with. 30/9/2001 Page 5