I asked DL where this sum is in the Annual Report.It is actually...

I asked DL where this sum is in the Annual Report.

It is actually part of the contingent assets note to the accounts - but due to uncertainties at the time, it has not been treated as an asset in the books!!

Note 22 (b) Page 48 of Annual Report:
"Research and Development tax incentive
An application for a claim of $4.2 million will be made under the Research and Development tax incentive (“Offset”) when the Company submits its 2012 tax return. As this is the first year of the Offset, directors believe it is appropriate to understand how the offset will be administered by the Australian Taxation Office and AusIndustry before recognition in the financial statements.
________________________________

Hence, the balance sheet net assets reported were $4.2m less than actual.

In the merger scheme booklet, however, there is reference made to a $5million limit - if Biota's asset values are impacted by a sum greater than this amount (I assume both positively or negatively), then this would have an impact on the deal terms. However, below this sum - no change.

That is my understanding - and not substantiated or confirmed by DL or anybody from Biota or elsewhere.

I would appreciate confirmation from Biota that my understanding is correct or otherwise - still waiting for a reply to my (short) email to Damian.

Not happy nonetheless - another example of how Biota shareholders APPEAR TO have been handed the short straw...