Cellmid 2018 Annual Report
The current loan amount relates to a loan to finance Directors’ and Officers’ liability insurance for $107,655 at an interest rate
of 5.2%.
The non-current loan amount relates to loan facilities with Keiyo Bank Ltd (JPY: 90,291,000) and Chiba Bank Ltd. (JPY:
4,823,000) and a lease facility with Business Mitsui Trust Panasonic Finance KK (JPY: 387,612).
The loan facilities are secured by a fixed charge over the assets of Advangen Inc. and are fully drawn as at 30 June 2018.
(b) Compound
Derivative loans and borrowings are compound financial instruments which comprise of two components; a financial liability
and an equity instrument.
The fair value of the liability component of a convertible loan is determined using a market interest rate for an equivalent
non-convertible loan. This amount is recorded as a liability on an amortised cost basis until extinguished on conversion or
maturity of the loan. The remainder of the proceeds are allocated to the equity component. This is recognised and included in
shareholders’ equity.
On 27 February 2017, Cellmid Limited entered into an R&D loan advance agreement with Platinum Road for $2,000,000. The
loan is secured against a R&D tax credit for a period of twenty-four months from commencement.
The agreement gives the lenders the right to require Cellmid to issue new ordinary fully paid shares at $1.00 per share to
reduce the principal amount. Additionally, the lenders have the right to require Cellmid to issue fully paid ordinary shares in
lieu of payment of accrued interest (at an annual rate of 12%, accrued monthly). These shares are to be issued at $0.70 per
share, with a maximum total of 342,857 shares being issued.
Accounting Policy
Provision is made for the Company’s liability for employee benefits arising from services rendered by employees up to the end
of the reporting period. In determining the liability, consideration is given to employee wage increases and the probability that
the employee may satisfy vesting requirements.
2018 2017
$ $
Current 1,899,772 1,783,822
Non-current - -
1,899,772 1,783,822