Announcement PDF ASX ANNOUNCEMENT 22 JANUARY 2016 ASX Announcement AMENDMENT TO DECEMBER QUARTERLY CASHFLOW (APPENDIX 4C) Cogstate Ltd (ASX: CGS) wishes to advise that the company has amended the December quarterly cashflow (Appendix 4C) that was lodged yesterday. The corrected Appendix 4C is attached below. The second page of the announcement lodged yesterday included an error with respect to the opening balance of “Payables” for the December quarter (the opening balance was previously noted as $3.42m rather than the correct figure of $2.80m). Cogstate has provided the following additional commentary to explain the $1.74m increase in Payables during the December quarter:    Trade Creditors have increased by $0.9m, reflecting more stringent management of payment terms, which resulted in a corresponding decrease in payments to suppliers of $0.9m during the quarter; Of the $0.9m of Trade Creditors at 31 December, it is noted that $0.5m represents passthrough costs which will be invoiced to customers and recovered in the next quarter; The remaining increase in liabilities reflects provisions brought to account at 31 December 2015 in line with the accounting standards. The audited financial statements for the half-year to 31 December 2015, which will be released on th Wednesday 17 February 2016, will provide additional details in respect of these balance sheet items. For further information contact: Brad O’Connor Cogstate Chief Executive Officer +613 9664 1300 or 0411 888 347 boconnor@cogstate.com ASX ANNOUNCEMENT 21 JANUARY 2016 DECEMBER QUARTER CASHFLOW REPORT COGSTATE RECORDS POSITIVE CASHFLOW IN SECOND QUARTER REAFFIRMS GUIDANCE FOR POSITIVE EBIT FOR 2016 FINANCIAL YEAR1 SUMMARY  Net Operating Cash Inflow of A$1.0m in the December quarter contributing to a net cash increase of A$1.0m for the quarter.  US$8.2m of new sales contracts signed for the quarter, taking total sales contracts signed since 1 July 2015 to US$16.6m. Signalling continued growth, the value of quarterly contracts signed has exceeded quarterly revenue for the last six consecutive quarters.  In line with prior guidance, Cogstate will record a positive EBIT in 1H16. The 1 Company also maintains guidance for positive EBIT for the 2016 Financial Year .  th Audited financial results will be released on Wednesday 17 February 2016. Cogstate (ASX.CGS) has today released its Quarterly Cash Flow Report (Appendix 4C) for the quarter ended 31 December 2015. The company reiterates its guidance for a return to positive EBIT 1 with respect to the full year to 30 June 2016. HIGHLIGHTS FOR THE PERIOD ENDED 31 DECEMBER 2015 (2Q16):  A Net Operating Cash Inflow in the December quarter: Cogstate reported a Net Operating Cash Inflow of A$1.0m in the quarter ended 31 December 2015.  Other significant cash movements during the quarter were: o Asset purchases of A$0.8m, made up predominantly of computer hardware for use in both clinical trials as well as use by Cogstate staff; o Cash receipts from the exercise of employee options of A$0.5m. In total, Cogstate recorded a net cash increase of A$1.0m for the quarter  2 New sales contract signings: Cogstate signed US$8.2m (in A$ terms A$11.4m) of new Clinical Trials sales contracts in 2Q16. This took the total value of sales contracts signed 2 since 1 July 2015 to US$16.6m (A$23.1m). Cogstate will release its Appendix 4D and half year financial results on Wednesday 17 February 2016. th _____________________________________________________________________________________________________ 1. 2. FY16 guidance based on EBIT from continuing operations at 30 June 2015 exchange rates. FY15 EBIT of -$A3.05m excludes -$A2.16m impairment of assets. Contracts are denominated in US$. The A$ equivalent is based on the prevailing spot rate at the time of signing the individual contracts. Quarterly Report – 31 December 2015 Summary Financial Table Quarter Just Completed Previous Quarter Previous Corresponding Quarter 31-Dec-15 A$ million 30-Sep-15 A$ million 31-Dec-14 A$ million Receivables Opening balance 6.14 4.90 3.14 Closing balance 6.62 6.14 2.47 Net Increase/(Decrease) in Receivables 0.48 1.24 (0.67) Opening balance (2.80) (3.42) (2.00) Closing balance (4.54) (2.80) (2.87) Net Increase/(Decrease) in Payables 1.74 (0.62) 0.87 Cash receipts from customers 7.36 6.81 4.69 Cash payments to employees (4.38) (4.68) (2.77) Cash payments to suppliers (2.00) (2.90) (2.16) Cash receipts, non-trading Net Operating Cash In/(Out) Flows 0.03 1.01 0.01 (0.76) 0.07 (0.17) Net Investing Cash In/(Out) Flows (0.80) (0.38) (0.24) Net Financing Cash In/(Out) Flows 0.51 0.00 0.00 Foreign exchange movement 0.25 (0.19) 0.06 0.97 (1.32) (0.34) Payables Cash Flow Net Increase/(Decrease) in cash held For further information contact: Brad O’Connor Cogstate Chief Executive Officer +613 9664 1300 or 0411 888 347 boconnor@cogstate.com Kyahn Williamson Buchan Consulting 0401 018 828 kwilliamson@buchanwe.com.au Appendix 4C Quarterly report for entities admitted on the basis of commitments Rule 4.7B Rule 4.7B Appendix 4C Quarterly report for entities admitted on the basis of commitments Introduced 31/3/2000. Amended 30/9/2001 Name of entity Cogstate Limited ABN Quarter ended (“current quarter”) 80 090 975 723 31 December 2015 Consolidated statement of cash flows Current quarter $A 7,356,340 Year to date (6 months) $A 14,166,015 (a) staff costs (incl R&D) (b) advertising and marketing (c) research and development (direct external costs) (d) leased assets (e) other working capital (4,380,275) (135,030) (9,064,708) (299,493) 1,726 (166,176) (1,271,855) (27,490) (357,381) (3,295,471) Dividends received Interest and other items of a similar nature received Interest and other costs of finance paid Income taxes paid Other (provide details if material) Accounting & Audit Computer costs Legal Costs, including patent costs Listing fees & assoc. costs Travel costs Grant Income 25,081 39,724 (2,280) (136,798) (4,155) (105,523) (66,191) (48,476) (19,086) (23,135) (120,519) - (77,192) (147,912) (32,691) (55,499) (486,354) 2,889 1,013,326 254,759 Cash flows related to operating activities 1.1 Receipts from customers 1.2 Payments for 1.3 1.4 1.5 1.6 1.7 Net operating cash flows + See chapter 19 for defined terms. 30/9/2001 Appendix 4C Page 4 Appendix 4C Quarterly report for entities admitted on the basis of commitments Current quarter 1.8 1.9 1.10 1.11 1.12 1.13 $A Year to date (6 months) $A 1,013,326 254,759 (805,381) - (1,182,423) - Proceeds from disposal of: (a) businesses (item 5) (b) equity investments (c) intellectual property (d) physical non-current assets (e) other non-current assets - - Loans to other entities Loans repaid by other entities Other (provide details if material) - - (805,381) (1,182,423) 207,945 (927,664) Net operating cash flows (carried forward) Cash flows related to investing activities Payment for acquisition of: (a) businesses (item 5) (b) equity investments (c) intellectual property (d) physical non-current assets (e) other non-current assets Net investing cash flows 1.14 Total operating and investing cash flows 1.15 1.16 1.17 1.18 1.19 1.20 Cash flows related to financing activities Proceeds from issues of shares, options, etc. Proceeds from sale of forfeited shares Proceeds from borrowings – convertible notes Repayment of borrowings Dividends paid Other (provide details if material) 513,296 - 513,296 - Net financing cash flows 513,296 513,296 Net increase (decrease) in cash held 721,241 (414,368) 1.21 1.22 Cash at beginning of quarter/year to date Exchange rate adjustments to item 1.20 4,119,980 248,752 5,444,943 59,398 1.23 Cash at end of quarter 5,089,973 5,089,973 + See chapter 19 for defined terms. 30/9/2001 Appendix 4C Page 5 Appendix 4C Quarterly report for entities admitted on the basis of commitments 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 $A 1.24 Aggregate amount of payments to the parties included in item 1.2 1.25 Aggregate amount of loans to the parties included in item 1.11 1.26 Explanation necessary for an understanding of the transactions 81,875 Nil N/A Non-cash financing and investing activities 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets 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). 3.1 Loan facilities 3.2 Credit standby arrangements Amount available $A $500,000 Amount used $A Nil N/A N/A + See chapter 19 for defined terms. 30/9/2001 Appendix 4C Page 6 Appendix 4C Quarterly report for entities admitted on the basis of commitments 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 $A Previous quarter $A 4.1 Cash on hand and at bank 2,273,814 813,895 4.2 Deposits at call 2,816,159 3,306,085 4.3 Bank overdraft 4.4 Other (provide details) 5,089,973 Total: cash at end of quarter (item 1.22) 4,119,980 Acquisitions and disposals of business entities 5.1 Name of entity 5.2 5.4 Place of incorporation or registration Consideration for acquisition or disposal Total net assets 5.5 Nature of business 5.3 Acquisitions (Item 1.9(a)) Disposals (Item 1.10(a)) N/A N/A 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: ............................................................ Company Secretary Print name: Claire Newstead-Sinclair Date: 22 January 2016 + See chapter 19 for defined terms. 30/9/2001 Appendix 4C Page 7 Appendix 4C Quarterly report for entities admitted on the basis of commitments 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.       3. 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 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. + See chapter 19 for defined terms. 30/9/2001 Appendix 4C Page 8