Interim Results
Seeing Machines Limited
28 March 2007
28th March 2006
SEEING MACHINES LIMITED
('Seeing Machines' or 'the Company')
REVIEWED INTERIM RESULTS FOR
SIX MONTHS TO 31 DECEMBER 2006
Seeing Machines Limited (AIM: SEE) announces its reviewed interim results for
the six months to 31 December 2006.
Financial Highlights
• Revenue increased 18% to A$1.394m (31 December 2005: A$1.181m)
• Sales of faceLAB(R)remain strong at A$1.034m for the half year (31
December 2005: A$1.152m)
• Contract Revenue A$353k (31 December 2005: $6k)
• Loss before tax A$141k (31 December 2005: $62k)
Operational Highlights
• Award of a Commercial Ready Grant worth A$2.1m over 2 years for
TrueField Analyzer(R), our medical device to help doctors detect and manage
glaucoma and other eye diseases;
• faceLAB(R) 4.3 released and sales of over A$1 million for the half
year;
• Release of the Driver State Sensor Research (DSS-R), a new product
offering for research and fleet trial implementation;
• Excellent progress on a number of automotive projects;
• Good progress on the development and commercialisation of the
TrueField Analyzer(R) including clinical and scientific trials, software
development, hardware development, regulatory approval and Intellectual
Property protection;
• Commencement of the faceAPI project that will make Seeing Machines
computer vision technology accessible to application developers everywhere.
Fulton Muir, Chairman stated, 'The company has made very good progress during
the half year in its research and development and commercialisation activities
across a number of projects including faceLAB(R), TrueField Analyzer(R),
automotive projects and faceAPI.'
Copies of this announcement will be available from the Company's registered
office, Innovations Building, Level 3, Corner Eggleston & Garran Roads, Acton
ACT 2601, Australia and the website www.seeingmachines.com.
Enquiries:
Seeing Machines Limited Insinger de Beaufort Parkgreen Communications
Nick Cerneaz, CEO Peter Ward Victoria Thomas
+61 (0) 2 6125 6501 +44 (0) 20 7190 7015 +44 (0) 20 7851 7480
Directors' Report
Your directors submit their report for the half-year ended 31 December 2006.
DIRECTORS
The names of the company's directors in office during the half-year and until
the date of this report are as below. Directors were in office for this entire
period unless otherwise stated.
James Fulton Muir, AO Non Executive Chairman
Nick Cerneaz Executive Director
David Gaul Non Executive Director
Anthony Kinnear Non Executive Director - resigned 30 November 2006
Rob Sale Non Executive Director
Trent Victor Non Executive Director
Alex Zelinsky Non Executive Director
William Mobbs Non Executive Director - appointed 18 October 2006
Review AND RESULTS of Operations
Review of 1st half of our Seventh Year of Operations
The first half of the 2007 financial year has seen pleasing progress in a number
of areas of the business.
Operational highlights for the half-year include:
• Award of a Commercial Ready Grant worth A$2.1m over 2 years for
TrueField Analyzer(R), our medical device to help doctors detect and manage
glaucoma and other eye diseases;
• faceLAB(R) 4.3 released and sales of over A$1 million for the
half-year;
• Release of the Driver State Sensor Research (DSS-R), a new product
offering for research and fleet trial implementation;
• Excellent progress on a number of automotive projects;
• Good progress on the development and commercialisation of the
TrueField Analyzer(R) including clinical and scientific trials, software
development, hardware development, regulatory approval and Intellectual
Property protection;
• Commencement of the faceAPI project that will make Seeing Machines
computer vision technology accessible to application developers everywhere.
Financial Results
Revenue for the half-year to 31 December 2006 was A$1.394 million, A$212,224
higher than the period to 31 December 2005. This increase in revenue was due to
a significant increase in contract revenue up from $6,483 at 31 December 2005 to
$359,080 at 31 December 2006. Other income for the half-year was $85,814 down
from $195,966 the previous half-year. This was due to the deferral of grant
income in the current period.
Net expenditure for the half-year was A$1,620,683 up from A$1,439,210 on the
prior half-year. This was due to higher staffing levels and higher corporate
fees, now that Seeing Machines is a listed company.
The loss for the half-year to 31 December 2006 was A$141,338 compared to a loss
of $61,937 for the half-year to 31 December 2005. This was due to increased
costs associated with the company's research and development and
commercialisation activities.
The company had $1,685,583 in cash at 31 December 2006 compared to $3,126,142 at
31 December 2005 which was immediately following the IPO. Net assets increased
to $3,908,044 at 31 December 2006 compared to $3,866,210 at 31 December 2005.
Operational Highlights
faceLAB(R)
In October 2006 we released faceLAB(R) 4.3 which brought improved head and
eye-gaze calculation, yielding greater accuracy and robustness over previous
versions of faceLAB(R). That release also included a new smaller form-factor
hardware platform, which reduced system complexity and setup time, and increased
experimental flexibility. This new platform provides manufacturing and
inventory efficiencies and has already reduced the time between the receipt of
an order and shipment to the end customer.
TrueField Analyzer(R)
All facets of this project progressed during the half-year including:
• scientific trials;
• large scale clinical study;
• regulatory approval;
• IP Protection (including trademarks in several jurisdictions);
• Industrial design and hardware development;
• Software development;
• Early stage commercialisation activities.
The work on this project was greatly assisted by the award in August 2006 of an
Australian Government Commercial Ready Grant of $2.1 million to be paid in
instalments over 2 years. We were also supported in this project by our
partners at the Australian National University Research School of Biological
Sciences including Dr Ted Maddess and Dr Andrew James as well as the Canberra
Eye Hospital.
Automotive
Strong progress has been made across a number of automotive projects with the
focus being on using the core vision processing technology to develop driver
safety systems.
We entered into an agreement as part of our involvement as an R&D participant in
the Co-operative Research Centre for Advanced Automotive Technology (AutoCRC)
for a project called Vision Based Collision Avoidance which is initially focused
on speed sign recognition but which will also examine other safety issues
including pedestrian detection and integrated lane departure warning. Seeing
Machines is the project lead and is working with Latrobe University and the
Australian National University along with industry participants GM Holden and
Australian Arrow. A prototype of the speed sign system working in a car was
delivered in December 2006.
A field trial of the Driver Fatigue and Distraction System has continued with a
major oilfield services and mining company in Texas. This has been a
collaborative effort with our automotive technology commercialization partner,
Hella KGaA Hueck & Co (Hella) which has enabled us to test the technology under
real world conditions.
In November 2006 we released the Driver State Sensor - Research (DSS-R) a
research and fleet trail implementation of the DSS technology based on the
system trialled in the US.
We have continued to work with our partners Hella and have commenced work on a
new technology demonstrator of an integrated driver assistance and driver
monitoring system for a major European automotive manufacturer.
faceAPITM /SDK
A significant amount of research has been completed to refresh the company's key
vision algorithms in order to keep us in the lead with core key head tracking
technology. This research is currently being incorporated into the company's
key products including faceLAB(R) and the DSS-R as well as other developments.
We have also commenced negotiations with a number of companies who wish to
licence one or more of our core vision algorithms to build the capability into
their products.
Auditor's Independence Declaration
We have obtained an independence declaration from our auditors, Ernst & Young.
The signed declaration is included after this report.
Signed at Canberra this 28th day of March 2007 in accordance with a resolution
of the directors made pursuant to section 306(3) of the Corporations Act 2001.
Fulton Muir Nick Cerneaz
Chairman Chief Executive Officer
and Director
Auditor's Independence Declaration to the Directors of Seeing Machines Limited
In relation to our review of the financial report of Seeing Machines Limited for
the half-year ended 31 December 2006, to the best of my knowledge and belief,
there have been no contraventions of the auditor independence requirements of
the Corporations Act 2001 or any applicable code of professional conduct.
Ernst & Young
James Palmer
Partner
28 March 2006
Income Statement
FOR THE HALF-YEAR ENDED 31 DECEMBER 2006 31 December 2006 31 December 2005
Note A$ A$
Sale of goods 1,034,452 1,174,825
Contract Income 359,080 6,483
Revenue 3(a) 1,393,532 1,181,308
Other income 3(b) 85,814 195,966
Cost of sales 3(c) (293,320) (353,624)
Employee benefits expense 3(d) (721,379) (784,051)
Depreciation and amortisation expense 3(e) (131,391) (76,180)
Other expenses 3(f) (474,594) (163,461)
Finance costs 3(g) 0 (61,895)
Loss before income tax (141,338) (61,937)
Income tax relating to operations - -
Loss after tax from operations attributable to (141,338) (61,937)
members
Loss per share (cents per share)
• basic for loss for the half-year (0.070) (0.031)
attributable to ordinary equity holders of the
company
• diluted for loss for the half-year (0.055) (0.030)
attributed to ordinary equity holders of the
company
Balance Sheet
AS AT 31 DECEMBER 2006 As at 31 As at 30 As at 31
December June December
2006 2006 2005
Note A$ A$ A$
CURRENT ASSETS
Cash and cash equivalents 5 1,685,583 2,407,053 3,126,142
Trade and other receivables 982,908 639,373 550,857
Inventories 120,669 129,370 97,878
Other 10,902 39,380 7,045
TOTAL CURRENT ASSETS 2,800,062 3,215,176 3,781,922
NON-CURRENT ASSETS
Property, plant and equipment 276,020 251,648 144,671
Intangible assets 264,802 221,240 251,258
Capitalised development costs 2,580,556 1,404,971 590,555
Other 3,496 3,311 2,635
TOTAL NON-CURRENT ASSETS 3,124,873 1,881,170 989,119
TOTAL ASSETS 5,924,935 5,096,346 4,771,041
CURRENT LIABILITIES
Trade and other payables 740,966 705,966 610,552
Deferred revenue 1,195,637 408,451 271,024
TOTAL CURRENT LIABILITIES 1,936,603 1,114,417 881,576
NON-CURRENT LIABILITIES
Interest bearing loans and borrowings 0 0 0
Provisions 80,287 68,692 23,255
TOTAL NON-CURRENT LIABILITIES 80,287 68,692 23,255
TOTAL LIABILITIES 2,016,890 1,183,109 904,831
NET ASSETS 3,908,044 3,913,237 3,866,210
EQUITY
Contributed equity 6,553,932 6,528,748 6,550,344
Accumulated losses (3,279,610) (3,138,272) (3,065,132)
Other reserves 633,722 522,761 380,998
TOTAL EQUITY 3,908,044 3,913,237 3,866,210
Statement of Changes in Equity
FOR THE HALF-YEAR ENDED Issued Capital Accumulated Employee Equity Total Equity
Losses Benefits Reserve
31 DECEMBER 2006
Note A$ A$ A$ A$
At 1 July 2006 6,528,748 (3,138,272) 522,761 3,913,237
Loss for the half-year (141,338) (141,338)
Issues of ordinary shares
during the half-year
Exercise of options 15,000 (10,184) 4,816
Share based payment 10,184 121,945 131,329
At 31 December 2006 6,553,932 (3,279,610) 633,722 3,908,044
At 1 July 2005 3,394,946 (3,003,195) 51,066 442,817
Loss for the half-year (61,937) (61,937)
Issues of ordinary shares
during the half-year
Exercise of options 16,373 16,373
Issue of share capital 3,848,550 3,848,550
Transaction costs (1,159,525) (1,159,525)
Conversion of Convertible 450,000 450,000
Notes
Share based payment 329,932 329,932
At 31 December 2005 2(b) 6,550,344 (3,065,132) 380,998 3,866,210
FOR THE HALF-YEAR ENDED 31 December 2006 31 December 2005
31 DECEMBER 2006 A$ A$
Net income recognised 0 0
directly in equity
Loss for the half-year (141,338) (61,937)
Total recognised income (141,338) (61,937)
and expense for the
half-year
Attributable to equity (141,338) (61,937)
holders of the company
Cashflow Statement
FOR THE HALF-YEAR ENDED 31 DECEMBER 2006 31 December 2006 31 December 2005
Note A$ A$
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 1,180,939 974,864
Grants received 795,317 175,776
Payments to suppliers and employees (1,367,254) (942,679)
Interest received 35,198 13,916
Finance costs paid 0 (83,421)
NET CASH FLOWS FROM OPERATING ACTIVITIES 644,200 138,456
CASH FLOWS USED IN INVESTING ACTIVITIES
Purchases of plant and equipment (98,225) (15,802)
Proceeds from disposals of plant and equipment 429 0
Payments for intangible assets (56,006) (19,859)
Payments for research and development costs (1,226,868) (334,149)
NET CASH FLOWS (USED IN) INVESTING ACTIVITIES (1,380,670) (369,810)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of borrowings 0 0
Exercise of options 15,000 16,373
Issue of shares 0 3,837,434
Costs of listing on AIM 0 (1,159,524)
NET CASH FLOWS FROM FINANCING ACTIVITIES 15,000 2,694,283
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (721,470) 2,462,929
Cash and cash equivalents at beginning of period 2,407,053 663,213
CASH AND CASH EQUIVALENTS AT END OF PERIOD 5 1,685,583 3,126,142
Notes to the Half-Year Financial Statements
1. CORPORATE INFORMATION
The financial report of Seeing Machines Limited (the Company) for the half-year
ended 31 December 2006 was authorised for issue in accordance with a resolution
of the directors on 28 March 2007.
Seeing Machines Limited is a company limited by shares incorporated in Australia
whose shares are publicly traded on the AIM of the London Stock Exchange.
The nature of the operations and principal activities of the Company are
described in the Directors' Report.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The half-year financial report does not include all the notes of the type
normally included within the annual financial report and therefore cannot be
expected to provide as full an understanding of the financial performance,
financial position and financing and investing activities of the company as the
full financial report.
The half-year report should be read in conjunction with the annual Financial
Report of Seeing Machines Limited as at 30 June 2006.
It is also recommended that the half-year financial report be considered
together with any public announcements made by Seeing Machines Limited during
the half-year ended 31 December 2006 in accordance with the continuous
disclosure obligations arising under the Corporations Act 2001.
(a) BASIS OF PREPARATION
The half-year financial report is a general-purpose financial report, which has
been prepared in accordance with the requirements of the Corporations Act 2001,
applicable Australian Accounting Standards, including AASB 134 - Interim
Financial Reporting. The half-year financial report has been prepared on a
historical cost basis.
For the purpose of preparing the half-year financial report, the half-year has
been treated as a discrete reporting period.
(b) RESTATEMENT OF COMPARATIVES
As disclosed at 30 June 2006, the company has recognised licences and applicable
amortisation for technology underlying ongoing development, which has impacted
on the 31 December 2005 comparatives. The effect of the adjustment to the
comparative for 31 December 2005 was to decrease the loss after tax from
operations attributable to members by $25,141 from $87,078 to $61,937. This was
due to capitalising an amount that had been previously expensed.
(c) SIGNIFICANT ACCOUNTING POLICIES
The half-year financial report has been prepared using the same accounting
policies as used in the annual financial statements for the year ended 30 June
2006, except for the adoption of amending standards mandatory for annual periods
beginning on or after 1 July 2006, as described in Note 2(d).
(d) CHANGES IN ACCOUNTING POLICIES
There have been no new accounting standards that have been issued or amended
that are applicable to the half-year reporting period ended 31 December 2006.
(e) SEGMENT REPORTING
The company operates in one business and one geographical segment being
research, development and production of computer vision technology in Australia.
The company's primary product is faceLAB(R) which is marketed internationally.
31 December 2006 31 December 2005
A$ A$
3. REVENUES AND EXPENSES
(a) Revenue 5.
Sale of goods 1,034,452 1,174,825
Contract Income 359,080 6,483
1,393,532 1,181,308
(b) Other income
START Grant 0 123,394
BIF Grant 8,131 52,382
Recognition of deferred grant income 16,393 3,616
Interest Earned 60,861 13,917
Foreign Exchange gain 0 2,657
Profit on Disposal of assets 429 0
85,814 195,966
(c) Cost of sales
Cost of Goods Sold (234,502) (319,477)
Finishing Services (5,361) (2,970)
Packaging & Freight (13,674) (12,303)
Workshop Sundries (5,942) (12,211)
Production (33,841) (6,663)
(293,320) (353,624)
(d) Employee benefits expense
Provision for Long Service (11,594) (10,749)
Share based payments (121,145) (329,932)
Salaries & Wages (1,399,888) (435,938)
Workers' Comp Insurance (11,162) (7,432)
Employee Benefits capitalised 822,410 0
(721,379) (784,051)
(e) Depreciation and amortisation
expense
Amortisation of intangible assets (57,722) (30,716)
Depreciation of property, plant and (73,669) (45,464)
equipment
(131,391) (76,180)
(f) Other expenses
Foreign Exchange Differences (8,163) 0
Professional Fees (150,263) 3,457
Audit Fees (10,500) (46,500)
Corporations Fees (111,795) (40,776)
Office and administration costs (52,873) (57,388)
Property Costs (74,843) (69,545)
Other expenses capitalised 106,445 225,343
Communications (16,556) (14,020)
International travel and marketing (120,525) (138,612)
Domestic travel and marketing (35,521) (25,420)
(474,594) (163,461)
(g) Finance costs
Interest Expense 0 (61,895)
4. DIVIDENDS PAID AND PROPOSED
No dividends or distributions have been made to members during half-year ended 31 December 2006 and
no dividends or distributions have been recommended or declared by the directors in respect of the
half-year ended 31 December 2006.
31 December 2006 31 December 2005
A$ A$
5. CASH AND CASH EQUIVALENTS
Reconciliation of cash
Cash at the end of the half-year as shown in the Statement of Cash
Flows is reconciled to the related items in the Balance Sheet as
follows:
CASH AND CASH EQUIVALENTS
Cash on hand 300 0
Cash at bank 126,785 3,052,765
Cash deposit 1,543,437 58,824
Term deposit 15,061 14,553
1,685,583 3,126,142
(a) Financing facilities available
At reporting date, there was $2,700 business credit card facility available but remained unused. The
company's term deposit is pledged as security for the credit card facility.
6. PROPERTY, PLANT AND EQUIPMENT
Acquisitions and disposals
During the half-year ended 31 December 2006, the company acquired assets with a cost of $98,225 (2005:
$15,802).
Assets with a net book value of $nil were disposed of by the company during the half-year ended 31
December 2006 (2005: $nil), resulting in a gain on disposal of $429 (2005:$nil).
7. INTANGIBLE ASSETS
Acquisitions and disposals
During the half-year ended 31 December 2006, the company acquired intangible assets with a cost of $56,006
(2005: $19,859).
Intangible Assets with a net book value of $nil were disposed of by the company during the half-year ended
31 December 2006 (2005: $nil), resulting in a gain on disposal of $nil (2005:$nil).
Capitalised Development Costs
During the half-year ended 31 December 2006, the company capitalised development costs totalling
$1,226,868 (2005: $334,149).
8. SHARE-BASED PAYMENTS
Employee Share Option Plan
In July 2006, 4,027,265 share options were granted to employees under the Employee Share Option Scheme. The
exercise price of $0.0844 is equal to the market price of the shares on the date of the grant. The options
will become exercisable between 31 December 2007 and 30 June 2009. The fair value of the options granted is
estimated as at the date of the grant using the 'Hull White' method using a trinomial lattice model. The
following table lists the key inputs to the model used to determine fair value of options issued in the
half-years ended 31 December 2006 and 2005:
2006 2005
Share price at grant date 8.39 c 7.56 c
Options exercise price 8.41c 5.16-7.56 c
Risk free interest rate 4.64% 5.34%
Exercise multiple 2.2 2.2
Volatility 45% 35%
The following table illustrates the number (No.) and weighted average exercise prices (WAEP) in cents, of
and movements in, share options issued during the half-year:-
31 December 2006 31 December 2005
WAEP WAEP
No. A$ No. A$
Outstanding at the beginning of the
half-year 21,297,764 6.762 c 295 $2,308.99
Forfeited during the half-year (2,914,639) 7.414 c (36) $2,308.99
Cancelled 0 0 c (259) $2,308.99
Reissue of options during the
half-year 0 0 c 5,342,405 5.130 c
Granted during the half-year
(1) 4,027,265 8.440 c 14,913,379 7.461 c
Exercised during the half-year (292,398) 5.130 c (319,153) 5.130 c
Expired during the half-year 0 0 c 0 0 c
Outstanding at the end of the
half-year 22,117,992 7.003 c 19,936,631 6.873 c
(1) The estimated fair value of each option at grant date is $0.04 (2005 - $0.03)
2006 2005
The outstanding balance as at 31 December 2006 is represented by:
Options over ordinary shares with an exercise price of 5.13 cents
each and an estimated fair value at grant date of $0.04 5,435,795 5,270,776
Options over ordinary shares with an exercise price of 7.5 cents
each and an estimated fair value at grant date of $0.03 14,665,855 14,665,855
Options over ordinary shares with an exercise price of 8.44 cents
each and an estimated fair value at grant date of $0.04 2,016,342 0
22,117,992 19,936,631
9. COMMITMENTS AND CONTINGENCIES
The Company has no finance leases or hire purchase contracts for items of plant
and machinery.
The Company had two Commercial Property Leases one which expired in September
2006 which was renewed and runs until February 2008.
Future minimum rentals payable under non-cancellable operating leases as at 31
December are as follows:
31 December 31 December 2005
2006
A$ A$
(a) Operating Lease (non-cancellable)
Minimum lease payments:
- not later than one year 8,082 28,502
- later than one year and not later than five years 1,347 0
Aggregate lease expenditure contracted for but not provided for at 9,429 28,502
reporting date
(b) Expenditure commitments
Estimated licence expenditure contracted for at reporting date, but not
provided for, payable:
- not later than one year 90,000 118,714
- later than one year and not later than five years 0 75,000
90,000
193,714
10. RELATED PARTY DISCLOSURE
(a) Director-related entity transactions
All transactions with director-related entities were made under normal commercial terms and
conditions.
(b) Equity instruments of directors
Interest at balance date:
Interest in the equity instruments of Seeing Machines Ltd held by directors of the company and their
director-related entities:
Ordinary shares fully Options over ordinary shares Convertible Notes
paid
2006 2005 2006 2005 2006 2005
Number Number Number Number Number Number
A. Zelinsky1 87,417,493 4,238 - - - -
R. Sale 1,175,743 171 - - - 150,000
A. Kinnear2 990,099 48 - - - -
N. Cerneaz 391,914 19 12,752,917 - - -
D. Gaul 1,000,000 - - - - -
1. The interests disclosed for Alexander Zelinsky relates to Ordinary Shares held by JATS Technology Pty Ltd, a
company in which he is interested in 24.4% of its issued shares at 30 June 2006.
2. Anthony Kinnear's Ordinary Shares are held by Ezaspi Pty Ltd, a company wholly owned by Ritmarn Pty Ltd (the
trustee of the Kinnear family trust). Anthony Kinnear is a director of Ritmarn Pty Ltd.
(c) Equity instruments of other related parties
Interest at balance date:
Interest in the equity instruments of Seeing Machines Ltd held by other related parties:
Ordinary shares fully paid Options over ordinary shares Convertible Notes
2005 2005 2005 2004 2006 2005
Number Number Number Number Number Number
3,939,769(1) 191 - - - -
1. This interest relates to shares held by Paula Kay Sale the wife of Rob Sale.
11. EVENTS AFTER THE BALANCE SHEET DATE
There have been no significant events that have occurred after balance sheet
date.
Directors' Declaration
In accordance with a resolution of the directors of Seeing Machines Limited made
on 28 March 2007, I state that:
In the opinion of the directors:
(a) the financial statements and notes of the company are in accordance
with the Corporations Act 2001, including:
(i) giving a true and fair view of the company's financial
position as at 31 December 2006 and of the performance for the
half-year ended on that date; and
(ii) complying with Accounting Standard AASB134 'Interim
Reporting' and Corporations Regulations 2001; and
(b) there are reasonable grounds to believe that the company will be able
to pay its debts as and when they become due and payable.
On behalf of the Board
Fulton Muir
Director
Canberra, 28th March 2007
Independent Review Report to the members of Seeing Machines Limited
Report on the Half-Year Condensed Financial Report
We have reviewed the accompanying half-year financial report of Seeing Machines
Limited, which comprises the condensed balance sheet as at 31 December 2006, and
the condensed income statement, condensed statement of changes in equity and
condensed cash flow statement for the half-year ended on that date, other
selected explanatory notes and the directors' declaration.
Directors' Responsibility for the Half-Year Financial Report
The directors of the company are responsible for the preparation and fair
presentation of the half-year financial report in accordance with Australian
Accounting Standards (including the Australian Accounting Interpretations) and
the Corporations Act 2001. This responsibility includes designing, implementing
and maintaining internal controls relevant to the preparation and fair
presentation of the half-year financial report that is free from material
misstatement, whether due to fraud or error; selecting and applying appropriate
accounting policies; and making accounting estimates that are reasonable in the
circumstances.
Auditor's Responsibility
Our responsibility is to express a conclusion on the half-year financial report
based on our review. We conducted our review in accordance with Auditing
Standard on Review Engagements ASRE 2410 Review of an Interim 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 believe that the financial report is not in accordance with the
Corporations Act 2001 including: giving a true and fair view of the company's
financial position as at 31 December 2006 and its performance for the half-year
ended on that date; and complying with Accounting Standard AASB 134 Interim
Financial Reporting and the Corporations Regulations 2001 and other mandatory
financial reporting requirements in Australia. As the auditor of Seeing Machines
Limited, ASRE 2410 requires that we comply with the ethical requirements
relevant to the 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 is substantially less in scope
than an audit conducted in accordance with Australian Auditing Standards and
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.
Independence
In conducting our review, we have complied with the independence requirements of
the Corporations Act 2001. We have given to the directors of the company a
written Auditor's
Independence Declaration, a copy of which is included in the Directors' Report.
The Auditor's Independence Declaration would have been expressed in the same
terms if it had been given to the directors at the date this auditor's report
was signed.
Conclusion
Based on our review, which is not an audit, we have not become aware of any
matter that makes us believe that the interim financial report of Seeing
Machines Limited is not in accordance with:
(a) the Corporations Act 2001, including:
(i) giving a true and fair view of the company's financial position as
at 31 December 2006 and of its performance for the half-year ended on
that date; and
(ii) complying with Accounting Standard AASB 134 Interim Financial
Reporting and the Corporations Regulations 2001; and
(b) other mandatory financial reporting requirements in Australia.
Ernst & Young
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Wednesday, 15th May 2024
COMPANIES COVERED:
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