20 March 2006 The Manager Company Announcements Platform Announcement for Immediate Release In accordance with the company’s arrangement contained in correspondence dated 5 July, 2005, the company encloses herewith the Appendix 4F, together with the financial report for the 12 month period ended 31 December 2005”. Yours faithfully, Ian May Managing Director Tele-IP Limited Appendix 4F Year ended 31 December 2005 _________________________________________________________________ TELE-IP LIMITED ABN 39 010 568 804 Appendix 4F Change of Balance Date Year ended 31 December 2005 1. Reporting periods Current reporting period Year ended 31 December 2005 Previous corresponding period Year ended 31 December 2004 2. Results for announcement to the market $A'000 2.1 Revenues from ordinary activities Up 9.1% to 7,536 2.2 (Loss) from ordinary activities after tax attributable to members Up 81.9% to (3,208) 2.3 Net profit (loss) for the period attributable to members Up 81.9% to (3,208) 2.4 Dividends (distributions) Amount per security Franked amount per security Final dividend Interim dividend NIL ¢ NIL ¢ Previous corresponding period: Final dividend Interim dividend NIL ¢ NIL ¢ 2.5 Record date for determining entitlements to the dividend N/A 2.6 EXPLANATION Losses are primarily attributable to revenue and gross margin from businesses acquired in July 2005 being lower than anticipated. Condensed Consolidated Financial Statements for the year ended 31 December, 2005 and comparative information for the previous corresponding period to 31 December, 2004 have been impacted by the implementation of Australian equivalents to International Financial Reporting Standards ( A-IFRS). 3. Financial Statements attached Tele-IP Limited Appendix 4F Year ended 31 December 2005 _________________________________________________________________ 4. Individual and Total Dividend or Distribution Payments Dividend or distribution payments: Amount Date on which each dividend or distribution is payable Amount per security of foreign sourced dividend or distribution (if known) N/A N/A N/A N.A Total 5. Dividend or Distribution Reinvestment Plans N/A 6. Foreign entities N/A 7, 8 & 9. Un-audited financial statements This report is based on un-audited financial statements for the year ended 31 December 2005. Signed by Managing Director: ___________________________ Name: Ian May Date: 17 March 2006 31 DECEMBER 2005 TELE-IP LIMITED AND CONTROLLED ENTITIES ABN 39 010 568 804 FINANCIAL REPORT FOR THE YEAR ENDED Page Financial Report for the year ended 31 December 2005 Condensed Consolidated Income Statement 3 Condensed Consolidated Balance Sheet 4 Condensed Consolidated Statement of Changes in Equity 5 Condensed Consolidated Cash Flow Statement 6 Notes to the Financial Statements 7 TABLE OF CONTENTS 31 DECEMBER 2005 TELE-IP LIMITED AND CONTROLLED ENTITIES FINANCIAL REPORT FOR THE YEAR ENDED TELE-IP LIMITED AND CONTROLLED ENTITIES CONDENSED CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2005 Note Year Year Ended Ended 31-Dec-05 31-Dec-04 $ $ Revenue 7,535,895 6,907,592 Changes in inventories of raw materials, finished goods and work in progress ( 5,098,856) (5,244,185) Employee benefits expense ( 3,154,852) (1,748,227) Consultancy and contractor expense ( 220,806) (283,730) Depreciation expense ( 78,164) (39,573) Finance costs expense ( 239,814) (456,394) Auditing and accounting expense ( 149,673) ( 91,800) Legal and insurance expense ( 201,169) (178,045) Rental and outgoings expense ( 206,502) ( 95,770) Reconstruction costs provided ( 350,000) - Technology research costs expense - (166,000) Other expenses ( 1,043,990) ( 665,765) Loss from continuing operations before income tax ( 3,207,931) (2,061,897) Income tax benefit - 298,737 Loss for the year ( 3,207,931) (1,763,160) Loss attributable to members of the parent ( 3,207,931) (1,763,160) Basic earnings per share (cents) 6 ( 0.81) (0.99) Diluted earnings per share (cents) 6 ( 0.77) (0.87) The above Income Statement should be read in conjunction with the accompanying notes. 3 TELE-IP LIMITED AND CONTROLLED ENTITIES CONDENSED CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2005 Note 31-Dec-05 31-Dec-04 $ $ CURRENTS ASSETS Cash and cash equivalents 1,019,650 476,693 Inventories 1,010,114 1,137,922 Receivables 2,412,308 520,544 TOTAL CURRENT ASSETS 4,442,072 2,135,159 NON-CURRENT ASSETS Receivables 43,750 43,750 Plant & equipment 296,215 89,466 Intangible assets 4,710,002 - TOTAL NON-CURRENT ASSETS 5,049,967 133,216 TOTAL ASSETS 9,492,039 2,268,375 CURRENT LIABILITIES Trade and other payables 6,142,929 2,822,962 Provisions 389,397 158,329 Deferred revenue - 97,057 TOTAL CURRENT LIABILITIES 6,532,326 3,078,348 TOTAL LIABILITIES 6,532,326 3,078,348 NET ASSETS 2,959,713 ( 809,973) EQUITY Contributed equity 3 17,572,009 10,594,391 Accumulated losses 4 ( 14,612,296) ( 11,404,364) TOTAL EQUITY 2,959,713 ( 809,973) The above Balance Sheet should be read in conjunction with the accompanying notes. 4 TELE-IP LIMITED AND CONTROLLED ENTITIES CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2005 Note Year Year Ended Ended 31-Dec-05 31-Dec-04 $ $ Total equity at the beginning of the year ( 809,973) 893,139 Remuneration based options payments 3 41,640 55,236 Net income recognised directly in equity 41,640 55,236 Net loss for the year ( 3,207,931) ( 1,763,160) Total recognised income and expense for the year attributable to members of the parent entity ( 3,166,291) ( 1,707,924) Transactions with equity holders in their capacity as equity holders: Net Contributions 3 6,935,977 4,812 6,935,977 4,812 Total equity at the end of the year 2,959,713 ( 809,973) The above Statement of Changes in Equity should be read in conjunction with the accompanying notes. 5 TELE-IP LIMITED AND CONTROLLED ENTITIES CONDENSED CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2005 Year Year Ended Ended 31-Dec-05 31-Dec-04 $ $ Cash flow from operating activities Receipts from customers 5,477,284 8,401,013 Payments to suppliers and employees (8,685,773) (8,863,927) Research and development tax offset - 298,737 Interest received 13,529 14,554 Interest and finance charges paid (91,149) (171,340) Net cash used in operating activities (3,286,109) (320,963) Cash flow from investing activities Purchases of property, plant and equipment (68,664) (20,313) Proceeds - sale of NMS portfolio 109,545 50,000 Purchases of Communications businesses (2,253,000) - Net cash provided by/(used in) investing activities (2,212,119) 29,687 Cash flow from financing activities Net cash proceeds from share and rights issue transactions 7,957,785 4,813 Net cash proceeds/(payments) - Loans (1,916,600) 523,600 Net cash provided by financing activities 6,041,185 528,413 Net increase in cash and cash equivalents 542,957 237,137 Cash and cash equivalents at beginning of year 476,693 239,556 Cash and cash equivalents at end of the year 1,019,650 476,693 The above Cash flow Statement should be read in conjunction with the accompanying notes. 6 TELE-IP LIMITED AND CONTROLLED ENTITIES NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2005 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The condensed consolidated financial report is a general purpose financial report that has been prepared in accordance with the Corporations Act 2001and AASB 134 "Interim Financial Reporting". Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 "Interim Financial Reporting". The condensed consolidated financial report does not include notes of the type normally included in an annual financial report and shall be read in conjunction with the most recent annual financial report. Pursuant to subsection 340(1) of the Corporations Act, the Australian Securities and Investments Commission provided an order to allow the company to change its balance date from December to June year end effective June 2005. Accordingly, in compliance with ASX requirements, this Appendix 4F is compiled to indicate results from operations for the half-year ended 31 December, 2005 combined with the previous Annual Report representing six months ended 30 June, 2005, to form a notional twelve month period. Comparatives are derived from the previous twelve month period ended 31 December, 2004 as reported. The consolidated entity changed its accounting policies on 1 July, 2005 to comply with Australian equivalents to International Financial Reporting Standards(A-IFRS). The transition to A-IFRS is accounted for in accordance with Accounting Standard AASB 1 "First-time Adoption of Australian Equivalents to International Financial Reporting Standards", with 1 January, 2004 as the date of transition for the purposes of this Appendix 4F. An explanation of how the transition from superseded policies to A-IFRS has affected the consolidated entity's income statement, balance sheet and cash flow statement is disclosed in Note 2. The resultant amended accounting policies set out below have been applied in preparing the condensed consolidated financial statements for the year ended 31 December, 2005, the comparative information presented in these financial statements, and in the preparation of the opening A-IFRS balance sheet at 1 January, 2004 (as disclosed in Note 2). (a) Share Based Payments Remuneration based share, rights and option issues made during the reporting period are measured at fair value at grant date and expensed on a straight-line basis over the vesting period and are disclosed as part of employee benefit expense with a corresponding increase to equity. The effect of this change in policy is outlined in Note 2. (b) Income tax The company calculates its current tax position as the amount of income taxes payable or recoverable in respect o f the taxable profit or loss for the reporting period referable to current tax rates and laws. Deferred tax is accounted for using the comprehensive balance sheet liability method in respect of temporary differences arising between the carrying amount of assets and liabilities in the financial statements and the corresponding tax base of those items. A deferred tax asset in respect of carried forward tax losses may be recognised to the extent that it is probable that future taxable income would be available subject to the tax consolidation rules. Due to recent tax losses incurred by the consolidated entity no such asset has been recognised. The company and its wholly owned Australian resident subsidiaries have formed a tax-consolidated group under Australian taxation law. Tele-IP Limited is the head entity in the tax consolidated group. There is considered to be no effect arising from this change of policy at the reporting date. (c) Impairment of Assets At each reporting date, the consolidated entity reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. Any impairment loss or a reversal of a prior impairment loss is generally recognised in profit or loss immediately, however impairment losses recognised relating to Goodwill are not subsequently reversed. A subsequent reversal of impairment losses cannot cause an asset value to exceed its original carrying value. There is considered to be no effect arising from this change of policy at the reporting date. (d) Goodwill Goodwill, representing the excess of the cost of acquisition over the fair value of the identifiable assets, liabilities and contingent liabilities acquired, is recognised as an asset and not amortised. At each reporting date, Goodwill is tested for impairment and any such impairment loss is recognised immediately and may not be subsequently reversed. There is considered to be no effect arising from this change of policy at the reporting date. (e) Going concern Tele-IP Ltd and its controlled entities incurred a trading loss for the year ended 31 December 2005 of $3,207,931 (31 December 2004 year loss: $1,763,160). The economic entity also has a deficiency in working capital as at 31 December 2005 of $2,090,254 (31 December 2004 deficiency of $943,189). This deficiency included monies received as a subscription for shares amounting to $2,290,260 which was included as a creditor at 31 December 2005, and which was converted to share capital on the allotment of shares on 3 January 2006. The ability of Tele-IP Ltd and its controlled entities to continue as a going concern is dependent upon the generation of positive cash flows from continuing trading operations, the completion of the sale of assets in a subsidiary as stated in Note 9 and the maintenance of existing bank facilities or other arrangements. 7 TELE-IP LIMITED AND CONTROLLED ENTITIES NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2005 2 IMPACT OF ADOPTION OF A-IFRS The consolidated entity changed its accounting policies on 1 July 2005 to comply with Australian equivalents to International Financial Reporting Standards (A-IFRS). The transition to A-IFRS is accounted for in accordance with AASB 1: First time Adoption of Australian Equivalents to International Financial Reporting Standards, with 1 January, 2004 as the date of transition for the purposes of this Appendix 4F. Reconciliations of how the transition from superseded accounting policies to A-IFRS have impacted the consolidated entity's income statement, balance sheet and cash flow statement are detailed in the following tables and accompanying notes to the tables. Effect of A-IFRS on Condensed Consolidated Income Statement for the year ended 31 December 2004 Note Superseded policies* Effect of transition to A-IFRS A-IFRS $ $ $ Revenue 6,907,592 - 6,907,592 Changes in inventories of raw materials, finished goods and work in progress (5,244,185) - ( 5,244,185) Employee benefits expense 2(a) (1,692,991) (55,236) ( 1,748,227) Consultancy and contractor expense (283,730) - ( 283,730) Depreciation expense (39,573) - (39,573) Finance costs expense (456,394) - ( 456,394) Auditing and accounting expense (91,800) - (91,800) Legal and insurance expense (178,045) - ( 178,045) Rental and outgoings expense (95,770) - (95,770) Technology research costs expense 2(b) - (166,000) ( 166,000) Other expenses (665,765) - ( 665,765) Loss from continuing operations before income tax (1,840,661) (221,236) ( 2,061,897) Income tax benefit 298,737 - 2 98,737 Loss for the year (1,541,924) (221,236) ( 1,763,160) Loss attributable to members of the parent (1,541,924) (221,236) ( 1,763,160) Effect of A-IFRS on Condensed Consolidated Balance Sheet as at 1 January 2004 Note Superseded policies* Effect of transition to A-IFRS A-IFRS $ $ $ CURRENTS ASSETS Cash and cash equivalents 239,556 - 2 39,556 Inventories 1,617,594 - 1,617,594 Receivables 1,433,928 - 1,433,928 TOTAL CURRENT ASSETS 3,291,078 - 3,291,078 NON-CURRENT ASSETS Receivables 43,000 - 4 3,000 Plant & equipment 108,726 - 1 08,726 Other 2(b) 300,000 (300,000) - TOTAL NON-CURRENT ASSETS 451,726 (300,000) 1 51,726 TOTAL ASSETS 3,742,804 (300,000) 3,442,804 CURRENT LIABILITIES Trade and other payables 2,217,945 - 2,217,945 Provisions 153,673 - 1 53,673 Deferred Revenue 178,047 - 1 78,047 TOTAL CURRENT LIABILITIES 2,549,665 - 2,549,665 TOTAL LIABILITIES 2,549,665 - 2,549,665 NET ASSETS 1,193,139 (300,000) 8 93,139 EQUITY Contributed equity 2(a) 10,531,137 3,206 10,534,343 Accumulated losses (9,337,998) (303,206) ( 9,641,204) TOTAL EQUITY 2(c) 1,193,139 (300,000) 8 93,139 * Reported financial position under previous Australian GAAP 8 TELE-IP LIMITED AND CONTROLLED ENTITIES NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2005 2 IMPACT OF ADOPTION OF A-IFRS (continued) Effect of A-IFRS on Condensed Consolidated Balance Sheet as at 31 December 2004 Note Superseded policies* Effect of transition to A-IFRS A-IFRS $ $ $ CURRENTS ASSETS Cash and cash equivalents 476,693 - 4 76,693 Inventories 1,137,922 - 1,137,922 Receivables 520,544 - 5 20,544 TOTAL CURRENT ASSETS 2,135,159 - 2,135,159 NON-CURRENT ASSETS Receivables 43,750 - 4 3,750 Plant & equipment 89,466 - 8 9,466 Other 2(b) 466,000 (466,000) - TOTAL NON-CURRENT ASSETS 599,216 (466,000) 1 33,216 TOTAL ASSETS 2,734,375 (466,000) 2,268,375 CURRENT LIABILITIES Trade and other payables 2,822,962 - 2,822,962 Provisions 158,329 - 1 58,329 Deferred revenue 97,057 - 9 7,057 TOTAL CURRENT LIABILITIES 3,078,348 - 3,078,348 TOTAL LIABILITIES 3,078,348 - 3,078,348 NET ASSETS (343,973) (466,000) ( 809,973) EQUITY Contributed equity 2(a) 10,535,949 58,442 10,594,391 Accumulated losses (10,879,922) (524,442) ( 11,404,364) TOTAL EQUITY 2(c) (343,973) (466,000) ( 809,973) * Reported financial position under previous Australian GAAP Effect of A-IFRS on Condensed Consolidated Cash Flow Statement for the year ended 31 December 2004 There are no material differences between the cash flow statement presented under A-IFRS and the cash flow statement presented under the superseded accounting policies. Notes to Reconciliations of the effects of A-IFRS (a) Share Based Payments Under AASB 2 "Share-based Payments", remuneration based share, rights and option issues must be expensed over expected vesting periods with a corresponding increase to equity. This resulted in a change in the superseded accounting policy, which did not expense any share based payments but only recognised an increase in equity upon issue of shares. (b) Intangible Asset Deferred Technology costs previously capitalised, and amortised, are expensed as incurred under AASB 138 "Intangible Assets". (c) Total equity The effects of the transition to A-IFRS on Total Equity are as follows: 31-Dec-04 1-Jan-04 $ $ Total equity reported under previous Australian GAAP (343,973) 1,193,139 Retrospective adjustments to total equity: - Recognition of remuneration based options payments: Contributed equity 58,442 3 ,206 - Recognition of remuneration based options payments: Accumulated losses (58,442) (3,206) - Deferred technology costs derecognised (466,000) ( 300,000) (809,973) 8 93,139 9 TELE-IP LIMITED AND CONTROLLED ENTITIES NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2005 31-Dec-05 31-Dec-04 $ $ 3 CONTRIBUTED EQUITY Issued and paid up capital: Ordinary fully paid shares 17,572,009 10,594,391 Movements in issued and paid up ordinary share capital of the company during the period were as follows: Note No. of Issue Price $ Shares (cents) 01.01.04 Opening balance 178,820,706 10,534,343 23.11.04 Issue of Shares 3(a) 75,000 2.00 1,500 23.11.04 Issue of Shares 3(a) 37,500 3.50 1,312 24.12.04 Issue of Shares 3(a) 100,000 2.00 2,000 31.12.04 Remuneration based options payments 2 55,236 31.12.04 Closing balance 179,033,206 10,594,391 09.05.05 Rights Issue 3(b) 237,500,000 2.00 4,750,000 30.06.05 Transactions costs arising on rights issue (403,127) 12.07.05 Issue of Shares 3(c) 54,750,000 2.00 1,095,000 15.07.05 Rights Issue 3(d) 56,080,301 2.00 1,121,606 26.08.05 Rights Issue 3(d) 21,550,000 2.00 431,000 20.09.05 Rights Issue 3(d) 8,585,000 2.00 171,700 31.12.05 Transactions costs arising on rights issue (230,201) 6,935,977 31.12.05 Remuneration based options payments 41,640 6,977,617 31.12.05 Closing balance 557,498,507 17,572,009 (a) Exercise of employee options under employee share plan. No amounts remain unpaid in respect of these shares. (b) Rights Issue In May 2005, 237,500,000 ordinary shares were issued at $0.02 per share fully paid pursuant to the company's 5 for 2 renounceable issue on a deferred settlement basis. These securities ranked equally and merged with existing quoted securities. (c) Issue of Shares On 12 July 2005, the contract for the acquisition of two new business operations, PGS Communication Systems and Able Communications were completed: consideration for which was satisfied by the issue of 54,750,000 ordinary shares at $0.02 per share plus $4,005,000 in cash on a deferred payment basis. (Refer Note 7) (d) Rights Issue Shortfall Placements In accordance with the 2005 Rights Issue Prospectus and Listing rule 7.2 Exception 3, the following Rights Issue shortfall placements occurred: (i) 15 July 2005 - 56,080,301 ordinary shares at $0.02 each fully paid to raise $1,121,606. (ii) 26 August 2005 - 21,550,000 ordinary shares at $0.02 each fully paid to raise $431,000. (iii) 20 September 2005 - 8,585,000 ordinary shares at $0.02 each fully paid to raise $171,700. Ordinary shares issued as a result of these placements rank pari passu in all respects with fully paid ordinary shares. Year Year Ended Ended 31-Dec-05 31-Dec-04 $ $ 4 ACCUMULATED LOSSES Accumulated losses at the beginning of the year 11,404,364 9,641,204 Current year loss 3,207,931 1,763,160 Accumulated losses at the end of the year 14,612,296 11,404,364 5 SEGMENT REPORTING During the period the economic entity operated solely in the telecommunications sector within Australia. 10 TELE-IP LIMITED AND CONTROLLED ENTITIES NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2005 Year Year Ended Ended 31-Dec-05 31-Dec-04 6 EARNINGS PER SHARE cents cents Basic earnings per share (0.81) (0.99) Diluted earnings per share (0.77) (0.87) Weighted average number of ordinary shares used in the calculation of Basic Earnings Per Share 394,258,112 178,834,336 Weighted average number of options outstanding 21,264,000 24,665,500 Weighted average number of ordinary shares used in the calculation of Dilutive Earnings Per Share 415,522,112 203,499,836 Earnings used in the calculation of Basic (3,207,931) (1,763,160) Earnings Per Share Earnings used in the calculation of Dilutive (3,207,931) (1,763,160) Earnings Per Share 7 ACQUISITION OF BUSINESSES On 12 July, 2005 the consolidated entity acquired two new business operations, PGS Communication Systems and Able Communications, for a total consideration of $2,200,000 and $2,900,000 respectively. The acquisitions had the following effect on the consolidated entity's assets and liabilities: (a) PGS Communication Systems Acquiree's net assets at the date of acquisition Tele-IP Recognised values Fair Value Adjustments Acquiree carrying amounts $ Property, plant and equipment 136,000 - 136,000 Vendors interest in the contracts 1 - 1 Intellectual property 1 - 1 Stock purchases 123,000 - 123,000 259,002 - 259,002 Goodwill on acquisition* 1,940,998 Consideration paid 2,200,000 Satisfied in: - cash 770,000 - issue of 33,000,000 shares at $0.02 per share 660,000 - deferred cash payment at 31 December 2005 770,000 2,200,000 Net cash outflow 1,540,000 (b) Able Communications Acquiree's net assets at the date of acquisition Tele-IP recognised values Fair value adjustments Acquiree carrying amounts $ Property, plant and equipment 60,000 - 60,000 Vendors interest in the contracts 1 - 1 Intellectual property 1 - 1 Stock purchases 70,998 - 70,998 131,000 - 131,000 Goodwill on acquisition 2,769,000 Consideration paid 2,900,000 Satisfied in: - cash 1,483,000 - issue of 21,750,000 shares at $0.02 per share 435,000 - deferred cash payment at 31 December 2005 982,000 2,900,000 Net cash outflow 2,465,000 * Goodwill has arisen on the acquisitions of PGS Communication Systems and Able Communications because of business activities and existing customer relationships that did not meet the criteria for recognition as an intangible asset at the date of acquisition. 11 TELE-IP LIMITED AND CONTROLLED ENTITIES NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2005 8 COMMITMENTS AND CONTINGENT LIABILITIES There has been no change in the consolidated entity's commitments and contingent liabilities since its most recent annual financial report. 9 EVENTS SUBSEQUENT TO REPORTING DATE The following significant events have occurred subsequent to balance date, the financial effects of which have not been recognised: PURCHASE OF NEW BUSINESS OPERATIONS In February 2006, the parent company entered into Heads of Agreement to acquire the business assets of TSA Communications Pty Ltd for a consideration of $3.5million, subject to due diligence. The consideration is payable by the issue of shares with a value of $1million and term payments of $2.5million over a 12 month period. SALE OF SUBSIDIARY ASSETS On 30 September, 2005, the parent company entered into a conditional contract for the sale of goodwill, plant and equipment, intellectual property and contractual rights owned by its subsidiary company, StratoSonde Pty Ltd, for a consideration of $1,105,000. The contract is due for settlement by 31 March 2006. SHARE ISSUE On 3 January 2006, the parent company issued 50,894,666 shares at 4.5 cents per share to raise additional working capital. The monies were received in advance as at 31 December, 2005. In February, 2006, the parent company issued 1,333,333 shares to an employee at an average price of 4.5 cents as a consequence of the exercise of options under the company's option incentive plan. OPTION ISSUE In February, 2006, the parent company issued 9,350,000 options to employees under the company's option incentive plan and options previously issued to employees over 3,166,667 shares lapsed as a consequence of the cessation of employment. 12
TEE Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held