send, spend and manage your money for personal …2016/10/03 · chimpchange limited annual report...

CHIMPCHANGELIMITED

ANNUALREPORTFORTHEYEARENDED30JUNE2016

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CORPORATEDIRECTORY

DirectorsPeterClare(Non-ExecutiveChairman)AshleyShilkin(ManagingDirector)IanLeijer(ExecutiveDirectorandCFO)BenjaminHarrison(Non-ExecutiveDirector)

CompanySecretaryDuncanCornish

RegisteredOfficeCorporateAdministrationServicesPtyLtdLevel10,110MaryStreetBRISBANEQLD4000Telephone:+61732126255Fax:+61732126250Email:[email protected]:www.chimpchange.me

PostalAddressChimpchangeLimitedGPOBox2676BRISBANEQLD4001

AustralianCompanyNumber150762351

AustralianBusinessNumber34150762351

AuditorsPitcherPartnersLevel30345QueenStreetBRISBANEQLD4000Telephone:+61732228444Fax:+61732217779Website:www.pitcher.com.au

ShareRegistryLinkMarketServicesLimitedTelephone:1300554474Website:www.linkmarketservices.com.au

Websitewww.chimpchange.me

ASXCodeCCA

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ChimpchangeLimitedAnnualReportForyearended30June2016

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TABLEOFCONTENTS

CHAIRMAN’SLETTER 4

MANAGINGDIRECTOR’SREPORT 5

DIRECTORS'REPORT 6

AUDITOR’SINDEPENDENCEDECLARATION 21

CORPORATEGOVERNANCESTATEMENT 22

FINANCIALREPORT 29

NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS 35

DIRECTORSDECLARTIONS 51

INDEPENDENTAUDITORSREPORT 52

ASXADDITIONALDISCLOSURE 54

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CHAIRMAN’SLETTERDearFellowShareholder,

Itgivesmegreatpleasuretopresentthe2016AnnualReportforChimpchangeLimited,ourfirstsincelistingonASX,amilestoneweachievedon30June2016.

ChimpChangeoffersconsumerssecure,low-cost,feature-richmobilemoneybankaccounts.WeaimtoprovideChimpChangeuserswithadigitalbankingexperiencethatisaffordable,personalised,funandfrictionless.

Severalyearsago,theCompanyidentifiedanopportunitytoservicetheMillennialdemographicintheUnitedStates–peopleagedbetween18to35years–whichisafragmentedandcost-riddenbankingenvironment.ThishaspresentedChimpChangewithareadilyaddressableandrapidlyexpandingmarketofcustomerswhoaredemandinganeasier,cheaperandmorereliablewayofmanagingtheirpersonalfinancialaffairs.

AstheCompanyattractsmoreandmorecustomerstoitsplatform,ChimpChangeisplayingitsparttochangethelandscapeofthebankingsector.

ThepastyearhasbeenatransformationaloneforourCompany.Afterfouryearsofdevelopment,welaunchedourdigitalbankingplatformintheUSduringthefirsthalfoftheyear,facilitatedbytwosuccessfulroundsofprivatefundingthatraisedA$8million.

Thesecondhalfoftheyearwasvitaltoourdevelopmentaswesetaboutexecutingonanumberofkeystrategies:

- RaisingA$15million(beforecosts)andlistingontheASX;- Transitioningtoanewexperiencedandinnovativesponsorbank;and- Re-negotiatingtransactioncoststosignificantlyreduceourcostofgoodssoldanddeliverapositivegross

margin.

ItwasverypleasingthatwewereabletoachieveallofthesegoalsandthencommenceatargetedmarketingcampaignaimedatattractingnewcustomersinJune.IampleasedtoseeChimpChangehaspostre-launchwithournewsponsorbankcontinueditsstrongcustomeracquisitiongrowthintoFY2017.

Overthecomingyear,weexpecttofurtherbolstertheChimpChangeplatformanddriveanewlevelofengagementasweintroduceseveralnewfrequently-requestedfeatures.TheCompany’soutlookforplatformdevelopmentandcustomeracquisitionremainsverypositive.

ChimpChangehasbuiltaboardandmanagementteamwithstrongexperienceinbanking,technologyandrisk–ourfounderandManagingDirectorAshShilkinhelpedgrowCO2AustraliaLimitedfromaA$30millioncompanytoaA$300milliononeduringhistimeasChiefFinancialOfficer.IbringtotheCompanymorethan20yearsofexperienceinthebankingindustry,mostrecentlyasCEOofWestpacNewZealandLimited.

IwouldliketothankmyfellowdirectorsandtheChimpChangemanagementteamfortheircontributions,aswellasourstafffortheireffortsoverthepastyear,particularlythoseinvolvedwiththeCompany’slistingonASX.

IwouldalsoliketothankourShareholdersforyoursupportandbeliefinourabilitytoachieveourgoalsandlookforwardtokeepingyouupdatedonourprogressoverthenext12months.

PeterClare

Non-ExecutiveChairman

ChimpchangeLimited

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MANAGINGDIRECTOR’SREPORTFinancialyear2016wasatransformationalyearforChimpChange.

IfoundedChimpChangetorespondtotherapidlychanginglandscapeofbanking,drivenbytechnologicaladvancement,smartphoneadoptionandevolvingconsumerexpectationsanddemographics.

TheCompany’svisionistochangethewaypeoplebankbyofferinganinnovative,feature-rich,digitalbankingalternativethatincludesboththeexistingfunctionalityexpectedoftraditionalbankswiththeadditionofnewfeaturesthataddvaluetothebankingexperience.

ChimpChangeisleadingwithtwocorevaluepropositions.ThefirstisprovidingfreeorlowcosttransactionalbankaccountstothetensofmillionsofAmericanswhoarecurrentlypayingmonthlyfeesandoverdraftfeesforabasicbankaccount.Thesecondvaluepropositionistobuildfinancialtechnologytoolstohelpcustomersunderstandtheirmoneyandmanagetheirmoneymoreeffectively.WecurrentlyhavethefirstvaluepropositioninplaceandwillhavemadesignificantprogressonthesecondvaluepropositionbytheendofH1FY2017.

TheCompanybelievesthatcurrenttrendsintheglobalbankingsectorpointtoanincreasingadoptionofalternativebankingsolutions.Nowwith100,000customersign-upsChimpChangeisacrediblealternativetotraditionalbanksandtheirlegacypractices.

Wehaveoverthelast12monthsimplementedanumberofimprovementsfromastrategic,operationalandtechnologyplatformstandpoint.AlltheseinitiativesplacetheCompanyinastrongpositionasitcontinuesitscustomergrowthinFY2017andbeyond.

OneofourstrategicinitiativescompletedduringthefinancialyearwasourIPOontheASX.TheIPOprovideduswithcapacitytocontinueexecutingongrowthobjectives,underpinnedbyA$15millionofnewcapitalandthesupportofnew,highqualityinvestorsaddedtotheregister.

TheIPOprovidedaclearchanneltoattractnewinvestorsasthebusinessexpandsonthebackofnewfeaturereleases,executionofmarketingprogramsandtransactionspendingfromagrowingcustomerbase.WehavealreadyhadthefortuneofbeingabletoupdateshareholdersmorerecentlyonoursolidprogresssofarinFY2017.

WhileequitymarketsforAustraliatechnologycompanieshaverecentlybeensoft,theseismicshiftinconsumerandinvestordemandfordigitalbankingproductshasnotchangedcourse.Anumberofourinternationalcomparableshavebeenthesubjectoflargecorporatetransactions.InJune2016,Europeanbaseddigitalbank,Number26,raisedUS$40millionprivately.Number26hasgrownto200,000customersafterlaunchingin2015.Inaddition,twoEuropeandigitalbanks(HolviandFidor)wereacquiredbylargetraditionalbanks.Fidor,themorerecent,wasonlyacquiredinAugustofthisyearbyFrance’ssecondlargestbankBPCE.Icontinuetobelievethatthedigitalbankingsectorwillexperiencecorporateactivityastraditionalbankslooktoacquiredigitalplatformsandinvestorslookatwaystogainexposuretothisexcitingspace.

Inclosing,IbelievetheCompanyhasneverbeeninabetterposition.Wearewellfunded,haveagreatteaminplace,grossmarginpositiveandarepoisedtoaddsignificantshareholdervalue.Ilookforwardtoprovidingyouallwithupdatesoverthenext12months.

AshleyShilkin

FounderandManagingDirector

ChimpchangeLimited

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DIRECTORS'REPORTTheDirectorspresenttheirreporttogetherwiththefinancialstatementsofChimpchangeLimited(ChimpChangeorCompany)consistingofChimpchangeLimitedandtheentitiesitcontrolledattheendoforduringtheyearended30Jun2016(Group).

DirectorsThefollowingpersonswereDirectorsofChimpchangeLimitedduringthewholeofthefinancialyearanduptothedateofthisreportunlessotherwisestated:PeterClareAshleyShilkinIanLeijerBenHarrison

PrincipalactivitiesTheGroup'sprincipalcontinuingactivityduringtheyearwasprovidingmobilebankingservicesthroughtheChimpChangemobileapplication.

BackgroundonCompanyandReviewofOperationsOverviewChimpChangecurrentlyoperatesintheUSbankingandfinancialservicesmarket.UnliketheAustralianbankinglandscape,whichcentresaroundasmallnumberoffinancialinstitutionswithreadilyadoptedonlinepaymentmethods,theUSmarketishighlyfragmented,expensiveandremainsheavilyreliantoncheque-basedtransactions.

Electronicpaymentmethods,facilitatedbysmartphonesandotherwirelesstechnologies,aregainingglobalmarketacceptance.Thisislargelydrivenbyadvancementsintechnologycoupledwithchangesindemographicandsocialbehaviours.

DigitaldisruptioninthebankingandfinancialservicesmarketwithintheUSandacrosstheworldwillevolveasdigitalbankingproductslikeChimpChange’splatformbecomecommonplaceandsupersedetraditionalbankingproductsandserviceofferingsfromincumbentretailinstitutions.

WhiletheCompany’scurrentgeographicfootprintonlyencompassestheUSmarket,theChimpChangeplatformhaspotentialapplicationtootherglobaljurisdictions,particularlythosemarketswhicharesupportiveofdigitaldisruption.

BankingisPrimeforDisruptionTheadoptionofdigital–includingmobile,socialmedia,webandwearables–isincreasing.Inthelastfewyearstechnologyhasrapidlyevolved,withbigdata,cloudcomputing,smartphonesandhighbandwidthallnowcommonplace.Asaconsequenceoftheserapiddevelopments,theretailbankingandfinancialserviceslandscapeisgoingthroughatransformationintheformofadigitaldisruptionwherebylow-costdigitalentrantsaretakingmarketsharebyrespondingtocustomerneedsandbankingbehaviours.

Technologicaladvanceshaveenabledbankingtobelargelyconductedonline,andcustomers’expectationsareevolvingintandem.Customersgenerallywanttotransactattheirconvenience,withinformationandadviceattheirfingertips.

Thistrendisposingasignificantchallengetolaggingbankingpractices,asdisruptivenewtechnologycompaniesarealteringthetraditionalvaluechaintoprovidecustomer-centricinnovationandrevampedalternativeproductofferings.

CustomersareTransitioningtoDigitalBankingAstechnologyenableseveryaspectofbankingtogomobile,andascashasapaymentmechanismdeclines,highfixed-costtraditionalbankingmodelsarecomingunderincreasingpressurefromindependentonlineofferings.Banking’slong-standingbarrierstoentry(includingpersonalrelationshipswithcustomers,locationscaleeconomiesandareputationfor

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security)areincreasinglylosingtheirvalue.Increasingsmartphoneadoptionmeanscompetitivereachisnolongerdeterminedsolelyby‘brickandmortar’branchnetworks.

Onerecentsurveyfoundthatmorethanoneinfourcustomerswouldlikelyconsiderabranchlessdigitalbankiftheyweretoswitchfromtheircurrentbank(seefigbelow).Thisisparticularlytrueamongyoungercustomers,whoarelessinterestedinconvenientbranchlocationsandmoreinterestedinaccessingdigitalservicesatthetimeandplaceoftheirchoosing.Ithasbeenestimatedthatmobile-onlyusersmakeupabout15%ofatypicalfinancialinstitution’smobilebankinguserbase.Inaddition,afurthersurveyfoundthatover70%ofMillennialssurveyedwouldlikelybankwithacompanythattheycurrentlydobusinesswithbutdonotcurrentlyofferbankingservices,withexamplesbeingtrusteddigitalbrands.

Thereisadditionalevidencethatdigitalusage(viasmartmobileapps,tabletappsoronlinetools)foraffluentcustomersintheUScorrelatescloselywithcustomerloyalty.

Digitalandself-servicechannels–includingmobilebanking–haveaccordinglyriseninpopularityforconsumerslookingtoconductroutinefinancialtransactionsontheirsmartphone,suchascheckingtheiraccountbalances,payingbillsorfindingaconvenientlocationtowithdrawcash.Forthesetransactions,speed,convenienceandeaseofusearetheprimaryconsumerconsiderations.

Followingthattrend,recentyearshavebeencharacterisedbytheriseofcontactlesspayments,theconsequentdeclineincashandcheques,growthindebitcardusage,andtheemergenceofmobileanddigitalpayments(referfigbelow).

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ItisanticipatedthatthetransitionfromincumbentbanksandtraditionalpaymentmethodswillcontinueintheUSasdisruptivenewentrantsintheformofdigitalstart-ups(lessencumberedbylegacysystems)seektoredefinethebankingexperiencebyofferingseamless,moreefficient,engagingandsimplersolutions.

AddressableMarketChimpChangeprimarilytargetstheMillennialandbroaderUnderbankeddemographicintheUS.Millennialsaretypically‘tech-savvy’andnotonlyembracebutdemanddigitaldisruptionacrossallfacetsoftheirlives,includinginthebankingandfinancialservicessector.

WhileChimpChangerecognisesthatMillennialsaremostlikelytoembraceitsmobilebankingplatform,ChimpChange’ssolutionwouldsuitanycustomerwhosimilarlyembracesgreaterflexibilityandconveniencefortheirday-to-daybankingordesireslowerornotransactionandaccountmanagementfees.

TheCompanydefinesMillennialsasallindividualsagedbetween15and35(bornbetween1981and2000).MillennialsarethelargestdemographicintheUSwith92.2millionpeople,followedbytheBabyBoomers(agedbetween51and70)with77.3millionpeopleandGenerationX(agedbetween36and50)with61.3millionpeople(seefigbelow).

Source:GoldmanSachs“MillennialsComingofAge”

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OperatingandFinancialReviewTheGrouphasreportedalossfortheyearaftertaxationof$7,655,000(2015:lossof$2,166,000).Financialyear2016wasatransformationalyearfortheCompany.AftertwoyearsofdevelopmentChimpChangelauncheditsdigitalbankingplatformintheUSAduringthe1sthalfoftheperiod.Tofacilitatethelaunch,theCompanywasabletosuccessfullyraisetwoprivatefundingroundsduringthefirsthalftotaling$5.9million(A$8million).Duringthe2ndhalftheCompanyexecutedonanumberofkeystrategicinitiativestopositiontheCompanyforthefuture,theseincluded:

• Raising$11.1million(A$15million)beforecostsandlistingonASX;• Transitioningtoanewexperiencedandinnovativesponsorbank;and• Re-negotiatingtransactioncostswhichresultedinasignificantreductioninourcostofgoodssold(COGS)and

deliveredapositivegrossmargin.Oneofthekeyfocusesduringthelastfewmonthsoftheperiodwasonretainingexistingcustomersthroughtransitiontoournewsponsorbankandfollowingre-launch(inmid-June),commencingahighlytargetedmarketingcampaign.TheCompanyrecentlyreportedthatsincethere-launchinmid-Junetoplinecustomeracquisitionhadoutperformingourinitialacquisitiontargets.WearepleasedtoseecustomeracquisitiongrowthcontinueintotheearlypartofFY2017.

SignificantchangesinthestateofaffairsContributedequityincreasedby$16,800,000asaresultofcapitalraisedthroughtheyear.Detailsofthechangesincontributedequityaredisclosedinnote15tothefinancialstatements.

MatterssubsequenttotheendofthefinancialyearNomatterorcircumstancehasarisensince30June2016thathassignificantlyaffectedtheGroup'soperations,resultsorstateofaffairs,ormaydosoinfutureyears.

LikelydevelopmentsandexpectedresultsofoperationsRefertotheReviewofOperationsforfurtherdetails.

InformationondirectorsPeterClare(Non-ExecutiveChairman)

ExperienceandexpertiseMrClarehasbeeninthebankingindustrysince1995,includingmostrecentlyastheChiefExecutiveOfficerofWestpacNewZealandLimited,adivisionofWestpacBankingCorporationLimited,from2012to2014.MrClarehascompletedanMBA(MacquarieUniversity,1990)andaBCominAccounting,FinanceandSystems(UniversityofNewSouthWales,1986).HeisamemberoftheAustralianInstituteofCompanyDirectorsandtheGovernanceInstituteofAustralia,andafellowofCPAAustraliaandFinancialServicesInstituteofAustralasia(FINSIA).

OthercurrentASXdirectorshipsReffindLtd–ChairmanScottishPacificGroupLimitedRubikFinancialLimited

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FormerASXdirectorshipsinlast3yearsNoneSpecialresponsibilitiesMemberoftheAudit&RiskManagementCommittee.Interestsinsharesandoptions200,000sharesinChimpchangeLimited.750,000optionsinChimpchangeLimited.AshleyShilkin(ManagingDirector)

ExperienceandexpertiseMrShilkinisthefounderandManagingDirectorofChimpChange,basedinLosAngeles,California.At26hewastheyoungestChiefFinancialOfficerofaA$30millioncompanylistedontheASX(CO2AustraliaLimited).WhileatCO2GroupthecompanygrewtooverA$300millioninmarketcapitalisationinashortperiodoftime.WhileatCO2GrouphetookonanumberofDirectorships.OnebeingDirector/ChiefOffsettingSuperheroofYonderr.com,afreshweb-basedcarbonoffsetcompany.ThesecondwasanappointmenttotheboardofCO2NewZealand;thecompanythatfacilitatedthefirst

meaningfulinternationalexpansionofCO2Group,whichresultedinmillionsofdollarsofadditionalrevenueforthegroup.MrShilkinhasaMastersinCommercialLawandaBachelorofCommercewithdoublemajorsinInvestmentFinanceandInternationalBusinessEconomics.OthercurrentASXdirectorshipsNoneFormerASXdirectorshipsinlast3yearsNoneSpecialresponsibilitiesMemberoftheAudit&RiskManagementCommitteeInterestsinsharesandoptions11,901,965sharesinChimpchangeLimited.3,500,000optionsinChimpchangeLimited.IanLeijer(ExecutiveDirector)

ExperienceandexpertiseMrLeijerhasbeencloselyinvolvedwithChimpChangesinceitsinception.MrLeijerisaCharteredAccountantwithover25years’experienceinfinancialanalysis,corporatetransactions,businessstrategyandbusinessmanagement.HewasCFOandCompanySecretaryforover10yearsofformerASXlistedcompanyAvatarIndustriesLimitedwhichoperatedgloballyinanumberofdiverseindustriesincludingminingservices,electronicsdistribution,fabricationofbuildingproductsandprinting.MrLeijerstartedhiscareerwithPriceWaterhousespecialisingincorporatetransactionsandvaluationsbeforejoiningaboutiqueinvestmentbank.

MrLeijercurrentlyworkswithanumberofentitiesonbusinessanalysis,capitalraising(debt&equity)andgeneralmanagement.MrLeijeralsoholdsaBachelorofEconomicsfromtheUniversityofSydney,Australia.

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OthercurrentASXdirectorshipsNilFormerASXdirectorshipsinlast3yearsNilSpecialresponsibilitiesNilInterestsinsharesandoptions2,872,529sharesinChimpchangeLimited.250,000optionsinChimpchangeLimited.BenHarrison(Non-ExecutiveDirector)

ExperienceandexpertiseMrHarrisonhas10years’experienceinadvisingandinvestingincompanies.Hespent5yearsworkingforaleadingmidcapcorporateadvisoryhousewhereheexecutedcapitalmarketandM&Atransactions.Heiscurrentlyinvolvedintheprivateequityandventurecapitalsector.MrHarrisonhasbeeninvolvedatboardlevelinanumberofinvesteecompaniesonbehalfofinvestors.HisexperienceextendsbeyondfinancingandM&Ainto;investment,strategy,financialmanagement,corporaterestructuring,corporategovernanceandgeneralmanagement.

MrHarrisonholdsaBachelorofScienceandMastersofAppliedFinanceandInvestment.OthercurrentASXdirectorshipsNoneFormerASXdirectorshipsinlast3yearsDarkHorseResourcesLtd(formerlyNavahoGoldLtd)(ceasedtobedirector24February2014)AusTinMiningLtd(ceasedtobedirector24February2014)LanewayResourcesLtd(ceasedtobedirector2October2014)SpecialresponsibilitiesChairmanoftheAudit&RiskManagementCommittee.Interestsinsharesandoptions43,668sharesinChimpchangeLimited.950,000optionsinChimpchangeLimited.CompanysecretaryTheCompanysecretaryisMrDuncanCornish.MrCornishhashadmanyyears’commercialandfinanceexperience,providingcompanysecretarialservicestopubliclylistedcompanies.

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MeetingsofdirectorsThenumbersofmeetingsoftheCompany'sboardofDirectorsandofeachboardcommitteeheldduringtheyearended30Jun2016,andthenumbersofmeetingsattendedbyeachDirectorwere: Fullmeetingsofdirectors Audit&RiskCommittee

meetings

A B A B

PeterClare 10 11 1 1

AshelyShilkin 11 11 1 1

IanLeijer1 10 11 1 1

BenHarrison 11 11 1 1

1MrLeijerattendedtheAudit&RiskCommitteemeetingbyinvitationA=NumberofmeetingsattendedB=NumberofmeetingsheldduringthetimetheDirectorheldofficeorwasamemberofthecommitteeduringtheyear

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Remunerationreport(audited)TheDirectorsarepleasedtopresentyourCompany's2016remunerationreportwhichsetsoutremunerationinformationforChimpchangeLimited'snon-executiveDirectors,executiveDirectorsandotherkeymanagementpersonnel.Non-executivedirectorremunerationpolicyTheshareholdersofChimpchangeLimitedon11August2015approved,forthepurposesoftheASXListingRulesandtheGroup’sConstitution,anincreaseinthemaximumaggregateannualnon-executivedirectors’feesto$500,000,withsuchfeestobeallocatedtothenon-executivedirectorsastheboardofdirectorsmaydetermine.TheRemunerationCommitteedeterminestheremunerationofallnon-executivedirectors,noneofwhomhaveservicecontractswiththecompany.ExecutiveremunerationpolicyandframeworkTheobjectiveoftheGroup’sexecutiverewardframeworkistoensurerewardforperformanceiscompetitiveandappropriatefortheresultsdelivered.Theframeworkalignsexecutiverewardwithachievementofstrategicobjectivesandthecreationofvalueforshareholders,andconformswithmarketpracticefordeliveryofreward.Theboardensuresthatexecutiverewardsatisfiesthefollowingkeycriteriaforgoodrewardgovernancepractices:

• competitiveandreasonable,enablingthecompanytoattractandretainkeytalent;• alignedtothecompany’sstrategicandbusinessobjectivesandthecreationofshareholdervalue;• performancelinkage/alignmentofexecutivecompensation;• transparent;• acceptabletoshareholders;• alignmenttoshareholders'interests;• attractsandretainshighcalibreexecutives;• alignmenttoprogramparticipants'interests;• rewardscapabilityandexperience;and• providesrecognitionforcontribution.

Theexecutiveremunerationandrewardframeworkhastwocomponents:

§ basepayandbenefits,includingsuperannuation;and§ longtermincentives.

(a) ElementsofremunerationBasepayandbenefitsExecutivesareofferedacompetitivebasepaythatcomprisesthefixedcomponentofpayandrewards.Basepayforexecutivesisreviewedannuallytoensuretheexecutive'spayiscompetitivewiththemarket.Anexecutive'spayisalsoreviewedonpromotion.Therearenoguaranteedbasepayincreasesincludedinanyexecutives'contracts.(b) DetailsofremunerationDetailsoftheremunerationofthedirectors,thekeymanagementpersonneloftheGroup(asdefinedinAASB124RelatedPartyDisclosures)ofChimpchangeLimitedandtheGrouparesetoutinthefollowingtables.ThekeymanagementpersonnelofChimpchangeLimitedincludesthedirectorsaslistedbelow:

• PeterClare(Chairman)• AshelyShilkin(ManagingDirector)• IanLeijer(ExecutiveDirector&CFO)• BenHarrison(Non-ExecutiveDirector)

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InadditiontothedirectorsthefollowingexecutivesthatreportdirectlytotheBoardarekeymanagementpersonnel:

• ClaytonFossett(ChiefOperatingOfficer)• NickRoberts(ChiefMarketingOfficer)

ThefollowingtableshowsdetailsoftheremunerationexpenserecognisedfortheGroup'sexecutivekeymanagementpersonnelforthecurrentandpreviousfinancialyearmeasuredinaccordancewiththerequirementsoftheaccountingstandards.2016Name ShortTermBenefits Post

EmploymentBenefits

Longterm

benefit

Sharebased

payments

Total

Cashsalaryandfees

Cash Bonus

NonMonetaryBenefits

US$ US$ US$ US$ US$ US$ US$

Non-executivedirectors PeterClare 40,144 - - - - 115,055 155,199BenHarrison 86,324 - - - - 63,919 150,243Subtotal 126,468 - - - - 178,974 305,442 Executivedirectors AshleyShilkin 180,769 596,000 10,000 5,000 - 455,418 1,247,187IanLeijer 35,114 89,460 - - 100,978 225,552Subtotal 215,883 685,460 10,000 5,000 - 556,396 1,472,739 KeyManagement ClaytonFossett 154,616 - - - - 55,037 209,653NickRoberts 150,994 - - - - 15,870 166,864Subtotal 305,610 - - - - 70,907 376,517 Total 647,961 685,460 10,000 5,000 - 806,277 2,154,698

MrShilkinreceivedabonusof$596,000(A$820,000)inJanuary2016asacashpaymentonthebasisoftheCompanyachieving7,000Customerregistrations.Thebonusisfundedbytheexerciseof1,175,000optionshavingavalueof$292,000(A$411,250)andbythefuturerepaymentoftheloanmadetoMrShilkinorhisassociatesundertheLoanFundedSharePlan(LFSP).UnimainPtyLimited,anentityassociatedwithMrLeijer,receivedasuccessfeeof$89,460inJanuary2016ascashpaymentonthebasisoftheCompanyachieving7,000Customerregistrations.Thesuccessfeeisfundedbytheexerciseof180,000optionshaveavalueof$44,730(A$63,000)andbythefuturerepaymentofaloanmadetoMrLeijerorhisassociatesundertheLoanFundedSharePlan.Theamountforsharebasedpaymentsrepresentstheexpenserecognisedinthecurrentfinancialyearforoptionsgrantedasremunerationinthecurrentandprioryears.Setoutbelowinsectiond(i)arethedetailsofoptionsissuedasremunerationinthecurrentfinancialyear.

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2015Name ShortTermBenefits Post

EmploymentBenefits

Longterm

benefit

Sharebased

payments

Total

Cashsalaryandfees

Cash Bonus

NonMonetaryBenefits

US$ US$ US$ US$ US$ US$ US$

Non-executivedirectors PeterClare 6,315 - - - - 32,704 39,019BenHarrison 54,259 - - - - 92,040 146,299Subtotal 60,574 - - - - 124,744 185,318 Executivedirectors AshleyShilkin 156,988 - - - - 687,454 844,442IanLeijer 39,905 - - - - 147,028 186,933Subtotal 196,893 - - - - 834,482 1,013,375 KeyManagement ClaytonFossett 81,238 - - - - 18,949 100,187NickRoberts - - - - - - Subtotal 81,238 - - - - 18,949 100,187 Total 338,705 - - - - 978,175 1,316,880

(c) ServiceagreementsPeterClare(Non-ExecutiveChairman)

• ServicesprovidedthroughSharedRunwayPtyLtd(SharedRunway);• Termofagreement–nofixedterm;• SharedRunwayreceivesanannualfeeofA$70,000forservicesprovidedbyMrClarepayablemonthlyonpro

ratabasis;and• SharedRunwayisentitledtoreimbursementofspecifiedexpensesincurredinprovidingservices.

AshelyShilkin(ManagingDirector)

• Termofagreement–nofixedterm;• Basesalaryis$180,000perannumreviewedannually;• Annual$10,000superannuationand$10,000carallowance;• Entitledtoreimbursementofspecifiedexpensesincurredinhisemployment;• CanparticipateundertheCompanyESOP;• Employmentcanbeterminatedgivingsixmonth’snoticeinwriting;and• MrShilkinisemployedunderthelawsoftheStateofCalifornia,US.

IanLeijer(ExecutiveDirectorandCFO)

• ServicesprovidedthroughUnimainPtyLtd(Unimain);• Termofagreement–6monthsunlessterminatedgivenonemonth’snotice,automaticallyextendedfor

additionalperiodsofonemontheachuntilterminatedoranewagreementisenteredinto.UnimainreceivesaconsultingfeeofA$2,000perdayforservicesprovidedbyMrLeijer;and

• Unimainisentitledtoreimbursementofspecifiedexpensesincurredinprovidingservices.BenHarrison(Non-ExecutiveDirector)

• ServicedprovidedthroughRiverfireCapitalVenturesPtyLtd(Riverfire);• Termofagreement–12monthsunlessterminatedgivenonemonth’snotice,automaticallyextendedfor

additionalperiodsofonemontheachuntilterminatedoranewagreementisenteredinto.;• RiverfirereceivesafeeofA$1,500perdayforservicesprovidedbyMrHarrison;and• Riverfireisentitledtoreimbursementofspecifiedexpensesincurredinprovidingservices.

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ClaytonFossett(COO)

• Termofagreement–nofixedterm;• Basesalaryisreviewedannually;• Entitledtoreimbursementofspecifiedexpensesincurredinhisemployment;• CanparticipateundertheCompanyESOP;• Employmentcanbeterminatedgivingonemonth’snoticeinwriting;and• MrFossettisemployedunderthelawsoftheStateofCalifornia,US.

NickRoberts(CMO)

• Termofagreement–nofixedterm;• Basesalaryisreviewedannually;• Entitledtoreimbursementofspecifiedexpensesincurredinhisemployment;• CanparticipateundertheCompanyESOP;• Employmentcanbeterminatedgivingtwomonth’snoticeinwriting;• IfMrRobertsemploymentisterminatedwithinthefirst12monthsofemploymentwithoutcause,thecompany

mustgiveMrRobertsthreemonths’notice(orpaymentinlieu)andallow50,000optionstovest;and• MrRobertsisemployedunderthelawsoftheStateofCalifornia,US.

(d) Equityinstrumentdisclosuresrelatingtokeymanagementpersonnel(i) OptionsissuedtoKeyManagementPersonnelasremunerationThefollowingoptionswereissuedaslongtermincentivestoKeyManagementPersonnelasremunerationduringthefinancialperiod.Name Number Strike

PriceExpiryDate4

ValueatGrantDate

$

TotalVested

Vested%

TotalNumberExercised

VestingConditions

Directors

PeterClare 450,000 A$1.00 31Dec18 115,055 450,000 100% - Nil

AshleyShilkin 1,000,000 A$1.00 31Dec18 255,677 1,000,000 100% - Nil

AshleyShilkin 1,000,000 A$1.50 18Apr21 299,234 - 0% - Note1

AshleyShilkin 1,500,000 A$2.25 18Apr21 362,388 - 0% - Note2

IanLeijer 250,000 A$1.00 31Dec18 63,919 250,000 100% - Nil

BenHarrison 250,000 A$1.00 31Dec18 63,919 250,000 100% - Nil

Keymanagement

ClaytonFossett 100,000 A$1.00 18Apr19 27,068 100,000 100% - Nil

NickRoberts 600,000 A$1.00 18Apr19 162,408 - 0% - Note3

Note1 TheoptionsvestwhenthevolumeweightedsharepriceofChimpChangeover10daysexceedsA$2.00Note2 TheoptionsvestwhenthevolumeweightedsharepriceofChimpChangeover10daysexceedsA$3.00Note3 100,000optionswillvestoneachanniversaryofthecommencementofhisemploymentwithChimpChangefor3years–total

300,000options.Afurther300,000optionswillvestsubjecttomeetingvarioushurdleswithrespecttothenumberofdepositcustomersreached.

Note4 OptionsmayexpireearlierthantheExpirydateifapersonceasestobeadirectororanemployeeoftheCompany.

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(ii) OptionHoldingsThenumbersofoptionsintheCompanyheldduringthefinancialyearbyeachDirectorofChimpchangeLimitedandotherkeymanagementpersonneloftheGroup,includingtheirpersonallyrelatedparties,aresetoutbelow.2016Name Balanceat

thestartoftheperiod

Grantedduringthe

year

Exercisedduringthe

year

Balance atthe end oftheperiod

TotalVestedat30Jun16

Exercisableat30June16

Unexercis-ableat

30June2016 Directors

PeterClare 300,000 450,000 - 750,000 750,000 750,000 -

AshleyShilkin 6,183,303 3,500,000 6,183,303 3,500,000 1,000,000 1,000,000 2,500,000

IanLeijer 1,322,440 250,000 1,322,440 250,000 250,000 250,000 -

BenHarrison 700,000 250,000 - 950,000 950,000 950,000 -

Keymanagement

ClaytonFossett 300,000 100,000 - 400,000 200,000 200,000 200,000

NickRoberts - 600,000 - 600,000 - - 600,000

2015Name Balanceat

thestartoftheperiod

Grantedduringthe

year

Exercisedduringthe

year

Balance atthe end oftheperiod

TotalVestedat30Jun15

Exercisableat30June15

Unexercis-ableat

30June2015 Directors

PeterClare - 300,000 - 300,000 300,000 300,000 -

AshleyShilkin - 6,183,303 - 6,183,303 6,183,303 6,183,303 -

IanLeijer - 1,322,440 - 1,322,440 1,322,440 1,322,440 -

BenHarrison - 700,000 - 700,000 700,000 700,000 -

Keymanagement

ClaytonFossett - 300,000 - 300,000 50,000 50,000 250,000

NooptionholderhasanyrightundertheoptionstoparticipateinnewissuesofsecuritiesintheCompanymadebytheCompanytoitsshareholdersgenerally.IntheeventofareconstructionofthecapitaloftheCompanyoranissueofBonussharestheoptionstrikepriceand/orthenumberofoptionswillbeadjustedsuchthatnobenefitisgainedorlostbyoptionholdersasaresultofthatreconstructionorbonusshareissue.

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(iii) ShareholdingsThenumbersofsharesintheCompanyheldduringthefinancialyearbyeachDirectorofChimpchangeLimitedandotherkeymanagementpersonneloftheGroup,includingtheirpersonallyrelatedparties,aresetoutbelow.Therewerenosharesgrantedduringthereportingperiodascompensation.Yearto30June2016

Balanceatthestartoftheperiod

Receivedduringtheyearonexerciseof

options

Otherchangesduringtheperiod

Balanceattheendoftheperiod

DirectorsofChimpchangeLimited

PeterClare 100,000 - 100,000 200,000

AshleyShilkin 5,718,662 6,183,303 11,901,965

IanLeijer 1,550,089 1,322,440 - 2,872,529

BenHarrison 43,668 - - 43,668

OtherkeymanagementpersonneloftheGroup

ClaytonFossett - - - -

NickRoberts - - - -

Duringthefinancialyear6,183,303optionswithanexercisepriceofA$0.35eachwereexercisedbyMrShilkinandhisassociates.TheCompanyofferedaloantoMrShilkinundertheLFSPofA$1,752,906tofacilitatetheissueof5,008,303LoanFundedSharestoMrShilkinorhisnominee.Thisofferwasacceptedand5,008,303optionsheldbyMrShilkinwereexercisedandthatnumberofLoanFundedShareswereissuedtoanassociatedentityofMrShilkin.1,175,000optionswereexercisedandsettledwithcash.Duringthefinancialyear1,322,440optionswithanexercisepriceofA$0.35eachwereexercisedbyMrLeijerandhisassociates.TheCompanyofferedaloantoMrLeijerundertheLFSPofA$399,854tofacilitatetheissueof1,142,440LoanFundedSharestoMrLeijerorhisnominee.Thisofferwasacceptedand1,142,440optionsheldbyanassociateofMrLeijerwereexercisedandthatnumberofLoanFundedShareswereissuedtoanassociatedentityofMrLeijer.180,000optionswereexercisedandsettledwithcash.Yearto30June2015

Balanceatthestartoftheperiod

Receivedduringtheyearon

exerciseofoptions

Otherchangesduringtheperiod

Balanceattheendoftheperiod

DirectorsofChimpchangeLimited

PeterClare - - 100,000 100,000

AshleyShilkin 5,718,662 - - 5,718,662

IanLeijer 1,450,089 - 100,000 1,550,089

BenHarrison - - 43,668 43,668

OtherkeymanagementpersonneloftheGroup

ClaytonFossett - - - -

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(e) Loanstokeymanagementpersonnel

TheCompanyhasadoptedtheChimpChangeExecutiveDirectorLoanFundedSharePlan(LFSP)whichwasapprovedbyShareholdersattheAprilEGM.DuringthefinancialyeartheCompanyofferedloansundertheLFSPtoMrShilkinandMrLeijerofA$1,752,906andA$399,854respectively.Theseofferswereacceptedtheproceedsofwhichwereusedtoexercise5,008,303and1,142,440optionsrespectively.Theseloansremainoutstandingatyearend.Thetermoftheloansis7yearsandinterestontheseloansispayableattherateforeachfinancialyearasdeterminedunderDivision7AoftheIncomeTaxAssessmentAct1936.TheloansarelimitedrecourseandtheCompanyhasalienoverthesharesissuedundertheLSFPwhilsttheloanremainsunpaid.TheLoanFundedShareswillbeforfeitediftheLoanisnotrepaidwhendue.

EndofRemunerationReportSharesunderoption

GrantDate Expiry StrikePrice VestingConditions Number

1Dec2014 1Dec2017 A$0.49 No 1,487,136

31Dec2014 31Dec2019 A$0.40 No 1,500,000

1Apr2015 1Apr2018 A$0.49 No 50,000

1Apr2015 20Oct2018 A$0.49 Yes 50,000

1Apr2015 20Oct2019 A$0.49 Yes 100,000

1Apr2015 20Oct2020 A$0.49 Yes 100,000

18Apr2016 31Dec2018 A$1.00 No 2,100,000

18Apr2016 18Apr2021 A$1.50 No 1,000,000

18Apr2016 18Apr2021 A$2.35 No 1,500,000

18Apr2016 18Apr2019 A$1.00 Yes 1,870,000

18Apr2016 18Apr2019 A$1.00 Yes 1,000,000

20Apr2016 20Apr2019 A$1.00 No 1,500,000

4May2016 30Jun2017 A$0.52 No 510,595

TOTAL 12,767,731

IndemnityandInsuranceofofficersInsuranceofofficersDuringthefinancialyear,theGrouppaidapremiuminrespectofacontractinsuringthedirectorsofthecompany(asnamedabove),thecompanysecretary,andallexecutiveofficersofthecompanyandofanyrelatedbodycorporateagainstaliabilityincurredassuchadirector,secretaryorexecutiveofficertotheextentpermittedbytheCorporationsAct2001.Thecontractofinsuranceprohibitsdisclosureofthenatureoftheliabilityandtheamountofthepremium.TheGrouphasnototherwise,duringorsincethefinancialyear,excepttotheextentpermittedbylaw,indemnifiedoragreedtoindemnifyanofficerorauditorofthecompanyorofanyrelatedbodycorporateagainstaliabilityincurredassuchanofficerorauditor.

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Non-auditservicesTheCompanymaydecidetoemploytheauditoronassignmentsadditionaltotheirstatutoryauditdutieswheretheauditor'sexpertiseandexperiencewiththeCompanyand/ortheGroupareimportant.Detailsofamountspaidorpayabletotheauditorfornon-auditservicesprovidedduringtheyearareoutlinedatnote27tothefinancialstatements.BasedonadviceprovidedbytheAuditandRiskManagementCommittee,theDirectorshaveformedtheviewthattheprovisionofnon-auditservicesiscompatiblewiththegeneralstandardofindependenceforauditors,andthatthenatureofnon-auditservicesmeansthatauditorindependencewasnotcompromised.RoundingThecompanyisofakindreferredtoinASICCorporations(RoundinginFinancial/Directors’Reports)Instrument2016/191,relatedtothe'roundingoff'ofamountsinthefinancialstatements.AmountsinthefinancialstatementshavebeenroundedoffinaccordancewiththatLegislativeInstrumenttothenearestthousanddollars,orincertaincases,thenearestdollar.Dividends-ChimpchangeLimitedTheDirectorsofChimpchangeLimiteddonotrecommendthepaymentofadividendfortheyearending30Jun2016(2015:Nil).Auditor'sindependencedeclarationAcopyoftheauditor'sindependencedeclarationasrequiredundersection307CoftheCorporationsAct2001issetoutonpage21.

AuditorPitcherPartnerscontinuesinofficeinaccordancewithsection327oftheCorporationsAct2001.ThisreportismadeinaccordancewitharesolutionofDirectors,pursuanttosection298(2)oftheCorporationsAct2001.30September2016

AshleyShilkin


ChimpchangeLimited

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AUDITOR’SINDEPENDENCEDECLARATION

The Directors

ChimpChange Ltd

C/- 110 S Fairfax Avenue

#A11-177

Los Angeles CA 90036

Auditor’s Independence Declaration

As lead auditor for the audit of ChimpChange Ltd for the year ended 30 June 2016, I

declare that, to the best of my knowledge and belief, there have been:

(i) no contraventions of the auditor independence requirements as set out in the

Corporations Act 2001 in relation to the audit; and

(ii) no contraventions of any applicable code of professional conduct in relation to the

audit.

This declaration is in respect of ChimpChange Ltd and the entities it controlled during the

period.

PITCHER PARTNERS

J. J. EVANS

Partner

Brisbane, Queensland

30 September 2016

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CORPORATEGOVERNANCESTATEMENTTheCompanyiscommittedtoimplementingandmaintaininggoodcorporategovernancepolicies.Chimpchange Limited’s CorporateGovernance Statement has been adoptedand structuredwith referencetotheAustralian Securities Exchange (ASX) Corporate Governance Council - Corporate Governance Principles andRecommendations, 3rd Edition(CGCRecommendations).The Company’s practices are largely consistent with the CGC recommendations, and the Board has madeappropriate statements reporting on the adoption of the recommendations. Where the Company’s corporategovernancepracticesdonotcorrelatewiththepracticesrecommendedbythe CGC,theCompanyisworkingtowardscompliance;howeveritdoesnotconsiderthatallpracticesare currently appropriate for the Company due to thesize and scale of its operations. The Board has offeredfulldisclosureandreasons for theadoptionofCompanypracticesandthesearesummarisedinthisCorporateGovernanceStatement.TheBoardisoftheviewthatwiththeexceptionofthedeparturesfromtheASXGuidelinesnotedbelowitotherwisecomplieswithalloftheASXGuidelines.Theinformationinthisstatementiscurrentasat30September2016andhasbeenapprovedbytheBoard.Principle1–LaysolidfoundationsformanagementandoversightFunctions,powers&responsibilitiesoftheBoardThe Board of Directors is pivotal in the relationship between shareholders and management and the role andresponsibilitiesoftheBoardunderpincorporategovernance.TheBoardiscommittedtoadministeringthepoliciesandprocedureswithopennessandintegrity,pursuingthetruespiritofcorporategovernancecommensuratewiththeGroup’sneeds.Generally,thepowersandobligationsoftheBoardaregovernedbytheCorporationsActandthegenerallaw.Withoutlimitingthosematters,theBoardexpresslyconsidersitselfresponsibleforthefollowing:• ensuringcompliancewiththeCorporationsAct,ASXListingRules(whereappropriate)andallotherrelevantlaws;

• providingleadershipanddeveloping,implementingandmonitoringstrategicoperationalandfinancialobjectivesfortheCompanyandtheoverallperformanceoftheCompany;

• appointingappropriatestaff,consultantsandexpertstoassistintheCompany'soperations;• ensuringappropriatefinancialandriskmanagementcontrolsareimplemented;• setting,monitoring and ensuring appropriate accountability and a framework for remuneration ofDirectors and

executiveofficers;• establishing and overseeing the Company’s process for making timely and balanced disclosure of all material

informationinaccordancewiththeASXListingRules;• implementingappropriatestrategiestomonitorperformanceoftheBoardinimplementingitsfunctionsandpowers;• implementingandoverseeingtheCompany’sriskmanagementframeworktoenablerisktobeidentified,assessed

andmanagedandtosettheriskappetitetheBoardexpectsManagementtooperatewithin;• appointingtheChairperson;• appointingandremovingtheChiefExecutiveOfficerandCompanySecretary;• approvingtheappointmentand,whereappropriate,removalofmembersofManagement;• contributingtoandapprovingManagement'sdevelopmentofcorporatestrategyandperformanceobjectives;• monitoring Management's implementation of strategy and performance generally, and ensuring appropriate

resourcesareavailabletoManagement;• monitoringtheeffectivenessoftheCompany’sgovernancepractices;• approving andmonitoring the progress of major capital expenditure, capital management and acquisitions and

divestitures;• approvingtheannualbudget;• liaisingwiththeCompany'sexternalauditors;• approvingandmonitoringfinancialandotherreportingsystemsoftheCompany(includingexternalaudit)andthe

integrityofthesesystems;and• appointingandoverseeingCommitteeswhereappropriatetoassistintheabovefunctionsandpowers.

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TheBoardhasdelegatedtotheManagingDirectordaytodayresponsibilityforrunningtheaffairsoftheCompanyandtoimplementthepoliciesandstrategysetbytheBoard.TheBoardalsodelegatestoseniormanagementtheresponsibilitiesfortheday-to-dayactivitiesleadingtowardachievementoftheCompany’sstrategicdirectionwithinagreedboundariesandauthoritylimitations.StructureoftheBoard

Thepolicy andprocedures for the selectionandappointmentofnewDirectors is that candidatesare consideredandselected by reference to a number of factors which include, but are not limited to, their relevant experience andachievements,compatibilitywithotherBoardmembers,andcredibilitywithintheCompany’sscopeofactivities.DirectorsareinitiallyappointedbythefullBoardsubjecttoelectionbyshareholdersatthenextAnnualGeneralMeeting.TheCompanyhasappropriateproceduresinplacetoensurethatmaterialinformationrelevanttoadecisiontoelectorre-electaDirector(includingwhetherDirectorssupporttheelectionorre-election)isdisclosedinthenoticeofmeetingprovidedtoshareholders.AteachAnnualGeneralMeetingthefollowingDirectorsautomaticallyretireandareeligibleforre-appointment:• anyDirectorwhohasbeenelectedintheofficeforaperiodinexcessofthreeconsecutiveyearsoruntilthethird

annualgeneralmeetingfollowingher/hisappointment,whicheverislonger,withoutsubmittinghim/herselfforre-election;

• anyDirectorwhowasappointedbytheDirectorsduringtheyeartofillacasualvacancyorasanadditiontotheexistingDirectors;

• one-thirdof theDirectorsor, if theirnumber isnotamultipleof three, thenthegreatestofoneor thenumbernearesttobutnotexceedingone-third.

Directorandseniorexecutiveagreements

NewDirectors receive the letterof their appointment andadeedof indemnity, insuranceandaccess.Non-executiveDirectorsarenotappointed for fixed terms.ExecutiveDirectorshavewrittenagreements,which setout thematerialtermsofengagement, includingadescriptionofpositionandduties, reporting lines, remunerationarrangementsandterminationrightsandentitlements.Eachseniorexecutiveentersintoanagreementwhichsetsoutthematerialtermsofengagement,includingadescriptionofpositionandduties, reporting lines, remunerationarrangementsand termination rightsandentitlements.Contractdetailsofseniorexecutives,whicharekeymanagementpersonnel,aresummarizedintheRemunerationReportintheAnnualReport.

CompanySecretary

The Company Secretary is accountable directly to the Board (through the Chairman) for facilitating the Company’scorporategovernanceprocessesandtheproperfunctioningoftheBoard.EachDirectorisentitledtoaccesstheadviceandservicesoftheCompanySecretary.InaccordancewiththeCompany’sConstitution,theappointmentandremovaloftheCompanySecretaryisamatterfortheBoardasawhole.AcopyoftheConstitutionisavailableontheCompanywebsiteunderCorporateGovernanceandthedetailsoftheCompanySecretaryaresetoutintheDirectors’ReportcontainedwithintheAnnualReport.

Diversity

TheBoardhasnotadoptedaformalDiversityPolicyatthisstage.TherecruitmentandselectionprocessesadoptedbytheCompanyensurethatstaffandmanagementareselectedinanon-discriminatorymannerbasedonmerit.TheCompanyrespectsandvaluesthecompetitiveadvantageofdiversity(whichincludesbutisnotlimitedtogender,age,disability,ethnicity,marital or family status religious or cultural background), and the benefit of its integration throughout theCompany in order to improve corporate performance, increase shareholder value and maximise the probability ofachievementoftheCompany’sgoals.However,theBoardofDirectorsdoesnotbelievethattheCompanyiscurrentlyofasufficientsizetojustifytheestablishmentofformalandmeasureableobjectives,havingregardtothenatureandscaleofitsactivities.

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Boardreviews

TheBoarddid not conduct a performance evaluationduring the last 12months andhas not adopted a performanceevaluationpolicy.The Company believes that the small size of the Board and the current scale of the Company’s activitiesmakes theestablishment of a formal performance evaluation procedure unnecessary. Performance evaluation is a discretionarymatter for consideration by the entire Board. In the normal course of events the Board reviews performance of themanagement,DirectorsandtheBoardasawhole.Achievementofgoalsandbusinessdevelopmentandcomplianceissuesareevaluatedregularlyonaninformalbasis.TheBoardisprovidedwiththeinformationitneedstodischargeitsresponsibilitieseffectively.AllDirectorshaveaccesstocorporategovernancepoliciesandmaterialcontractsenteredintobytheCompany.TheDirectorsalsohaveaccesstotheCompanySecretaryforallBoardandgovernance-relatedissues.

Managementreviews

TheBoarddidnotconductaperformanceevaluationofseniorexecutivesduringthelast12monthsandhasnotadoptedaperformanceevaluationpolicy.TheCompanybelievesthatthesmallsizeoftheexecutiveteamandthecurrentscaleoftheCompany’sactivitiesmakestheestablishmentofaformalperformanceevaluationprocedureunnecessary.Performanceevaluationisadiscretionarymatter for consideration by the entire Board. In the normal course of events the Board reviewsperformance of themanagement,DirectorsandtheBoardasawhole.Achievementofgoalsandbusinessdevelopmentandcomplianceissuesareevaluatedregularlyonaninformalbasis.

PRINCIPLE2–STRUCTURETHEBOARDTOADDVALUE

Nominationcommittee

TheBoardhasnotformallyestablishedaNominationsCommitteeastheDirectorsconsiderthattheCompanyisnotofasizenorareitsaffairsofsuchcomplexityastojustifytheformationofthisCommittee.TheBoardconsidersthatitisableto deal efficiently and effectively with Board composition and succession issues without establishing a separateNomination Committee and in doing so, the Boardwill be guided by the Charter which is set out in the Company’sCorporate Governance Charter and can be accessed on the Company’s website under Corporate Governance. TheCompanywillreviewthispositionannuallyanddeterminewhetheraNominationsCommitteeneedstobeestablished.

SkillsandexperienceDetailsofthecurrentDirectors,theirskills,experienceandqualificationsissetoutintheProspectus.Thesedetails,plusarecordofattendanceatmeetings,willbeincludedintheDirectors’ReportwithintheAnnualReportinfuture.AtthisstageoftheCompany’sdevelopmenttheBoardbelievesthereisanappropriatemixofskills,experienceanddiversityontheBoard.HowevertheBoardwillcontinuetomonitoritscompositionwithaviewtoensuringishasanappropriatemixofskillsanddiversity.

IndependenceandlengthofserviceTheCompany’sBoardiscomprisedofPeterClare,BenjaminHarrison,IanLeijerandAshleyShilkin.ThelengthofserviceofeachDirectorissetoutbelowandcanbefoundintheDirectors’ReportwithintheAnnualReport.Name Appointmentdate Lengthofservice

PeterClare 16April2015 19months

BenjaminHarrison 16January2015 22months

IanLeijer 16January2015 22months

AshleyShilkin 6May2011 5yearsand6months

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PresentlyundertheASXGuidelinesitisconsideredthatthereisonlyoneindependentDirector,beingMrClare.ThetablebelowdetailsthereasonswhytheremainingDirectorsarenotconsideredtobeindependent:Name Position Reasonfornon-compliance

BenjaminHarrison Non-ExecutiveDirector DirectorwasemployedinanexecutivecapacityintheleaduptotheCompany’sIPO(ie.withinthelastthreeyears)

IanLeijer FinanceDirectorandCFO Directorisemployedinanexecutivecapacity

AshleyShilkin ManagingDirector DirectorisemployedinanexecutivecapacityandisasubstantialsecurityholderoftheCompany

BasedonASXGuidelinestheBoardisoftheviewthattheChairman,MrClareisindependent.HowevertheBoardisofthe view that it does not consist of amajority of independent Directors. The Boardwill consider appointing furtherindependentDirectorsinthefuture,whentheCompanyisofsufficientsizeandhavingregardtothescaleandnatureofitsactivities.Inthemeantime,theCompanybelievesthatgiventhesizeandscaleofitsoperations,non-compliancebytheCompanywiththisrecommendationwillnotbedetrimentaltotheCompanyoritsshareholders.Principle3–Actethicallyandresponsibly

Codeofconduct

TheCompanyhasestablishedaCorporateCodeofConductandCorporateEthicsPolicyfortheBoard,managementandemployeesoftheCompany.TheCodesrequirethatDirectors,managementandemployeesmaintainhighstandardsofintegritybyensuringthatallbusinessactivitiesareconductedlegallyandethicallyincompliancewiththeletterandspiritof both the lawandCompanypolicies. TheCodeof Conduct andEthics Policy is set out in theCompany’s CorporateGovernanceCharterandcanbeaccessedontheCompany’swebsiteunderCorporateGovernance.

PRINCIPLE4–SAFEGUARDINTEGRITYINCORPORATEREPORTING

AuditCommitteeTheBoardhasestablishedanAuditandRiskManagementCommittee.TheCommitteeis:

• MrBenjaminHarrison–Non-ExecutiveDirector(ChairmanoftheCommittee)• MrPeterClare–Non-Executive(Independent)Director• MrAshleyShilkin–ManagingDirector

CGCrecommendation4.1statesthattheauditcommitteeshouldconsistofamajorityofindependentDirectorsandallbenon-executiveDirectors.MessrsHarrisonandShilkinarenotconsideredtobeindependentasdetailedinsection2.3andMr Shilkin is an Executive Director. The Company believes that given the size and scale of its operations, non-compliancebytheCompanywillnotbedetrimentaltotheCompany.TheexperienceandqualificationsofmembersoftheAuditandRiskManagementCommitteearedetailedintheAnnualReport.DetailsofCommitteemembers’attendanceatAuditandRiskManagementCommitteemeetingswillalsobeabletobeaccessedintheDirectors’ReportwithintheAnnualReport.The Company has adopted an Audit and RiskManagement Committee Charter setting out the Committee aswell asreportingrequirements.TheCharterwillbereviewedannuallytodeterminewhetheranychangesarenecessary.AcopyoftheCharter is includedintheCorporateGovernanceCharterandcanbeaccessedontheCompany’swebsiteunderCorporateGovernance.

TheresponsibilitiesoftheAuditandRiskManagementCommitteewithrespecttoauditareto:• reviewandmakerecommendationstotheBoardinrelationtowhethertheCompany’sfinancialstatementsreflect

theunderstandingofthemembersoftheCommittee,andotherwiseprovideatrueandfairviewofthefinancialpositionandperformanceoftheCompany;

• reviewandmakerecommendationstotheBoardinrelationtotheappropriatenessoftheaccountingjudgmentsorchoicesexercisedbyManagementinpreparingtheCompany’sfinancialstatements;

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• ensurethatthequalityoffinancialcontrolsisappropriateforthebusinessoftheCompany;• reviewthescope,resultsandadequacyofexternalandinternalaudits;• requiretheexternalauditorstoreporttotheCommittee;• monitorcorporateconductandbusinessethicsandongoingcompliancewithlawsandregulations;• maintainopenlinesofcommunicationbetweentheBoard,Managementandtheexternalauditors,thusenabling

informationandpointsofviewtobefreelyexchanged;• reviewmattersofsignificanceaffectingthefinancialwelfareoftheCompany;• ensurethatsystemsofaccountingandreportingoffinancialinformationtoshareholders,regulatorsandthegeneral

publicareadequateandmakingrecommendationsinthisregard;• reviewtheCompany'sinternalfinancialcontrolsystem;• considerandmakerecommendationsregardingtheappointmentandremovaloftheexternalauditorandapproving

theremunerationandtermsofengagementoftheexternalauditor;• monitor and review the external auditor's independence, objectivity andeffectiveness, taking into consideration

relevantprofessionalandregulatoryrequirementsandtheperformanceoftheexternalauditor;and• developandimplementpolicyontheengagementoftheexternalauditortosupplynon-auditservices,takinginto

accountrelevantethicalguidanceregardingtheprovisionsofnon-auditservicesbytheexternalauditfirmandmakerecommendationsonanyproposalbytheexternalauditortoprovidenon-auditservices;

Externalauditor

Pitcher Partnerswas appointed as the Company’s external auditor by shareholders at aGeneralMeeting held on 30November2015.PitcherPartnershasadvisedtheCompanythattheirpolicyofauditpartnerrotationrequiresachangeintheleadengagementpartnerandreviewpartnerafteraperiodoffiveyears.RepresentativesofPitcherPartnersattendtheAnnualGeneralMeetingandareavailabletoanswershareholderquestionsregardingtheauditortheindividualstatements.ManagingDirectorandCFOcertificationoffinancialstatements.

PriortotheapprovaloftheGroup’sfinancialstatementseachyear,theManagingDirectorandtheChiefFinancialOfficerconfirminwritingtotheBoardthatthefinancialreportsoftheCompanyforthefinancialyear:

• presentatrueandfairview,inallmaterialrespects,oftheCompany’sfinancialconditionandoperationalresultsandareinaccordancewithrelevantaccountingstandards;

• thestatementgiveninaccordancewithsection295AoftheCorporationsActisfoundedonasoundsystemofriskmanagementandinternalcomplianceandcontrolwhichimplementsthepoliciesadoptedbytheBoard;and

• theCompany’sriskmanagementandinternalcomplianceandcontrolsystemisoperatingefficientlyandeffectivelyinallmaterialrespectsinrelationtofinancialreportingrisks.

PRINCIPLE5–MAKETIMELYANDBALANCEDDISCLOSURE

DisclosureandCommunicationsPolicyTheCompanyhasadoptedaContinuousDisclosurePolicywithinitsCorporateGovernanceChartertoensurecompliancewiththecontinuousdisclosurerequirementsoftheASXListingRulesandtheCorporationsAct2001(oncetheCompanyislistedontheASX).ThepolicysetsouttherulesandproceduresforASXinformationdisclosure,theresponsibilityoftheBoard,SeniorExecutivesandstafftoensurethatpricesensitiveinformationisidentified,reviewedbymanagementanddisclosedtotheASXinatimely,clearandobjectivemannerandthatallinformationprovidedtotheASXispostedontheCompany’swebsiteassoonaspossibleafteritsdisclosuretoASX.The Company Secretary will manage the Company’s compliance with its continuous disclosure obligations and isresponsibleforcommunicationswith,andcoordinatingdisclosureofinformationtotheASX.DirectorswillreceivecopiesofallannouncementsreleasedtotheASXandcopiesofannouncements,includingrelatedinformation,suchasfinancialstatementsandpublicpresentations,andareawareofandaccountablefortheCompany’scompliancewithregardtocontinuousdisclosure.

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RESPECTTHERIGHTSOFSECURITYHOLDERSShareholderCommunication

TheCompanyiscommittedtoinformingshareholdersofallmajordevelopmentsaffectingtheoperationsoftheCompanyandthestateofitsaffairs.Communicationswithshareholdersinclude:

• Theannualreportwhichisdistributed,orotherwisemadeavailable,toallshareholders;

• Thequarterlyactivitiesreport;

• Thehalf-yearfinancialreport;

• TheAnnualGeneralMeetingandothergeneralmeetingscalledtoobtainshareholderapprovalforsignificantcorporateactions,asappropriate;

• Companyannouncements;and

• AlloftheinformationavailableontheCompany’swebsitewww.chimpchange.me

TheCompanywelcomesquestionsfromshareholdersatanytimeandtheseareansweredpromptlyunlesstheinformationrequestedismarketsensitiveandnotinthepublicdomain.AllannouncementstobemadebytheCompanytotheASX(exceptdisclosuresofaroutinecomplianceoradministrativenature)willbepostedtotheCompany’swebsite.InformationabouttheCompanyanditsoperationsincludinginformationabouttheCompany’scorporategovernancepoliciesislocatedat:www.chimpchange.meFacilitateparticipationatmeetingsofsecurityholders.

TheCompanyencouragesshareholderparticipationatitsAGM’sincludingbymakingnoticesofmeetingsavailableonitswebsite.ChimpChange’sexternalauditorattendstheCompany’sAGMsandisavailabletoansweranyquestionswhichshareholdersmayhaveabouttheconductoftheexternalauditfortherelevantfinancialyearandthepreparationandcontentoftheauditreport.

ShareholderswhoareunabletoattendmeetingsoftheCompanyareencouragedtoparticipateinmeetingsbywayofappointmentofaproxy.

PRINCIPLE7–RECOGNISEANDMANAGERISKRiskcommittee

TheBoardhasestablishedanAuditandRiskManagementCommitteethemembersofwhicharesetintheAuditsectionunderPrincipal4andtheresponsibilitiesofwhicharesetoutintheAuditandRiskManagementCommitteeCharter.TheCharterwillbereviewedannuallytodeterminewhetheranychangesarenecessary.AcopyoftheCharterisincludedintheCorporateGovernanceCharterandcanbeaccessedontheCompany’swebsiteunderCorporateGovernance.TheresponsibilitiesoftheAuditandRiskManagementCommitteewithrespecttoriskareto:

• review and make recommendations to the Board in relation to the adequacy of the Company’s processes formanagingrisks,including:

(a) inrelationtoanyincidentinvolvingfraudorotherbreakdownoftheCompany’sinternalcontrols;

(b) inrelationtotheCompany’sinsuranceprogram,havingregardtotheCompany’sbusinessandtheinsurablerisksassociatedwiththebusiness;

• ensure the development of an appropriate risk management policy framework that will provide guidance toManagement in implementing appropriate risk management practices throughout the Company's operations,practicesandsystemsandtooverseethisframework;

• defineandperiodicallyreviewriskmanagementasitappliestotheCompanyandclearlyidentifyingallstakeholders;

• ensuretheCommitteeclearlycommunicatestheCompany'sriskmanagementphilosophy,policiesandstrategiestoDirectors,Management,employees,contractorsandappropriatestakeholders;

• ensurethattheBoardandManagementestablishariskawareculturewhichreflectstheCompany'sriskpoliciesandphilosophies;

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• reviewmethodsofidentifyingbroadareasofriskandsettingparametersorguidelinesforbusinessriskreviews;

• make informed decisions regarding business risk management, internal control systems, business policies andpracticesanddisclosures;and

• considercapitalraising,treasuryandmarkettradingactivitieswithparticularemphasisonrisktreatmentstrategies,productsandlevelsofauthorities.

The responsibility for undertaking and assessing risk management and internal control effectiveness is delegated tomanagementundertheguidanceoftheCommittee.Internalaudit

TheCompanydoesnothaveaninternalauditfunctionduetoitscurrentsize.TheAuditandRiskManagementCommitteegainssufficientassurancefrommanagementundertakingongoingevaluationoftheCompany’sinternalcontrolandriskmanagementprocesses.Sustainabilityrisks

Asadigitalbankingcompany,ChipmChangefacesinherentrisksinitsactivities,primarilyfinancial,operatingandsystemrisksbutalsoincludingeconomic,environmentalandsocialsustainabilityrisks.TheBoarddoesnotconsiderthatithasmaterialexposuretoeconomic,environmentalandsocialsustainabilityrisksotherthanitsexposuretogeneraleconomicconditionsinthemarketsinwhichitoperates.The Board regularlymonitors the operational and financial performance of the Company’s activities. Itmonitors andreceivesadviceonareasofoperationandfinancialriskandconsidersstrategiesforappropriateriskmanagement.

Reviewofriskmanagementframework

TheAudit&RiskManagementCommitteewasestablishedinApril2016didnotconductaformalreviewoftheCompany’sriskmanagementframeworkinthe2016financialyear.Duringthe2016financialyeartheidentificationandevaluationofrisksandthedevelopmentandimplementationofriskmitigationplanswasundertakenbymanagementwithoversightfromtheBoard.

PRINCIPLE8–REMUNERATEFAIRLYANDRESPONSIBLYRemunerationcommittee.

TheBoardhasnotformallyestablishedaRemunerationCommitteeastheBoardconsidersthattheCompanyisnotofasizenorareitsaffairsofsuchcomplexityastojustifytheformationofthisCommittee.TheBoardofDirectorsisresponsiblefordeterminingandreviewingcompensationarrangementsfortheDirectorsandtheExecutiveteam.TheBoardassessestheappropriatenessofthenatureandamountofremunerationofsuchofficerson a periodic basis by reference to relevant employment market conditions with the overall objective of ensuringmaximumstakeholderbenefitfromtheretentionofahighqualityBoardandExecutiveteam.DisclosureofExecutiveandNon-ExecutiveDirectorRemunerationpolicy

TheConstitutionoftheCompanyprovidesthattheNon-ExecutiveDirectorsareentitledtoremunerationasdeterminedbytheCompanyingeneralmeetingtobepaidastoafixedamountforeachDirector.Additionally,Non-ExecutiveDirectorsareentitledtobereimbursedforproperlyincurredexpenses.AllDirectorshavetheopportunitytoqualifyforparticipationintheCompany’sshareoptionplan,subjecttotheapprovalofshareholders.Details of the Company’s remuneration arrangements for Non-Executive Directors, Executive Directors and seniorExecutivesincludingfeeratesaresetoutintheRemunerationReportintheAnnualReport.ShareTradingPolicy.

TheCompany’sShareTradingPolicyspecificallyprohibitsDirectorsandseniorExecutives fromengaging inshort-termtrading in theCompany’ssecurities.ThePolicyalsostipulates thatDirectorsandseniorExecutivesandclosely relatedpartiesnotenterintotransactionswhichlimittheeconomicriskrelatingtounvestedoptionsheldbyDirectorandSeniorExecutives. The Share Trading Policy is included in the Corporate Governance Charter and can be accessed on theCompany’swebsiteunderCorporateGovernance.

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FINANCIALREPORTThesefinancialstatementsaretheconsolidatedfinancialstatementsoftheconsolidatedentityconsistingofChimpchangeLimitedanditssubsidiaries.ThefinancialstatementsarepresentedintheUnitedStatescurrency.ChimpchangeLimitedisacompanylimitedbyshares,incorporatedanddomiciledinAustralia.Itsregisteredofficeis:CorporateAdministrationServicesPtyLtdLevel10,110MaryStreetBRISBANEQLD4000Itsprincipalplaceofbusinessis:ChimpchangeLLC7083HollywoodBoulevard,Level1,Hollywood,CA90028AsummaryoftheGroup’soperationsanditsprincipalactivitiesisincludedinthedirectors'reportonpage6,whichisnotpartofthesefinancialstatements.ThefinancialstatementswereauthorisedforissuebytheDirectorson30September2016.TheDirectorshavethepowertoamendandreissuethefinancialstatements.Throughtheuseoftheinternet,wehaveensuredthatourcorporatereportingistimelyandcomplete.Allpressreleases,financialreportsandotherinformationareavailableatourShareholders'Centreonourwebsite:www.chimpchange.me

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CONSOLIDATEDSTATEMENTOFPROFITORLOSS 2016 2015

Note US$000s US$000s

Revenue 4 180 -

Employeebenefitsexpense (2,840) (1,256)

Advertising&marketingexpense (1,129) (62)

Programexpenses (983) (147)

Consulting (1,459) (291)

Travelexpense (126) (61)

Financecosts - (1)

Depreciation&amortisationexpense 5 (275) (2)

Legalexpenses (332) (30)

Insurance (82) (13)

TechnologyExpense (165) (56)

Otherexpense (444) (247)

Profit(loss)beforetax (7,655) (2,166)

Incometaxexpense 6 - -

Profit(loss)fromcontinuingoperations (7,655) (2,166)

Basiclosspershare(UScentspershare) (22.9) (10.6)

Dilutedlosspershare(UScentspershare) (22.9) (10.6)

Theconsolidatedstatementsaboveshouldbereadinconjunctionwiththeaccompanyingnotes.

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CONSOLIDATEDSTATEMENTOFCOMPREHENSIVEINCOME 2016 2015

US$000s US$000s

Lossoftheyear (7,655) (2,166)

Othercomprehensiveincome

Itemsthatmaybereclassifiedtoprofitandloss

Exchangedifferencesontranslationofparentoperations 50 (63)

Profit(loss)fromcontinuingoperations (7,605) (2,229)


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CONSOLIDATEDSTATEMENTOFFINANCIALPOSITION Notes 2016 2015

US$000s US$000s

Currentassets

Cash 7 10,878 753

Otherreceivables 8 107 35

Othercurrentassets 9 15 2

Totalcurrentassets 11,000 790

Non-currentassets

Property,plant&equipment 10 31 17

Intangibleassets 11 811 626

Totalnon-currentassets 842 643

TOTALASSETS 11,842 1,433

Currentliabilities

Tradeandotherpayables 12 359 48

Provisions 13 101 21

Othercurrentliabilities 14 22 768

Totalcurrentliabilities 482 837

NETASSETS 11,360 596

Equity

Contributedequity 15 18,714 1,914

Reserves 16 3,290 1,671

Retainedearnings (10,644) (2,989)

TOTALEQUITY 11,360 596


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CONSOLIDATEDSTATEMENTOFCHANGESINEQUITY Contributed Reserves Retained Total

Equity Earnings Equity

US$000s US$000s US$000s US$000s

Balanceat30June2014 1,102 26 (823) 305

Profit(loss)fortheyear (2,166) (2,166)

Exchangedifferencesontranslationofthe

parentoperation (63) (63)

Totalcomprehensiveincomefortheyear - (63) (2,166) (2,229)

Transactionswithownersintheircapacityasowners

Optionsissued 1,708 1,708

Contributions 812 812

Totalcomprehensiveincomefortheyear 812 1,708 - 2,520

Balanceat30June2015 1,914 1,671 (2,989) 596

Profit(loss)fortheyear (7,655) (7,655)

Exchangedifferencesontranslationofthe

parentoperation 50 50

Totalcomprehensiveincomefortheyear - 50 (7,655) (7,065)

Transactionswithownersintheircapacityasowner


Contributions 16,800 16,800

Totalcomprehensiveincomefortheyear 16,800 1,569 - 18,369

Balanceat30June2016 18,714 3,290 (10,644) 11,360


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CONSOLIDATEDSTATEMENTOFCASHFLOWS Notes 2016 2015

US$000s US$000s

Cashflowfromoperatingactivities

Receiptsfromcustomers 178 -

Paymentstosuppliersandemployees (5,457) (1,103)

Interestreceived 2 -

Netcashusedinoperatingactivities (5,277) (1,103)

Cashflowfrominvestingactivities

Paymentforproperty,plant&equipment (24) (15)

Paymentforsoftwaredevelopment (394) (460)

Netcashusedininvestingactivities (418) (475)

Proceedsfromfinancingactivities

Proceedsfromshareissue 15,825 2,263

Netcashprovidedbyfinancingactivities 15,825 2,263

Netincrease(decrease)incashheld 10,130 685

Reconciliationofcash

Cashatthebeginningofthefinancialyear 753 78

Netincrease(decrease)incashheld 10,130 685

Foreignexchangedifferenceoncashholding (5) (10)

Netcashusedinoperatingactivities 10,878 753


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NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS

1. SummaryofSignificantAccountingPolicies

TheseconsolidatedfinancialstatementsrelatetoChimpchangeLimitedandtheentitiesitcontrolledattheendof,orduring,theyearended30June2016andhadbeenpreparedinaccordancewithrule4.3AoftheASXListingRules(Appendix4E).TheprincipalaccountingpoliciesadoptedinpreparingthefinancialreportoftheCompanyanditsconsolidatedentities(ConsolidatedEntityorGroup)fortheyearended30June2016arestatedtoassistinageneralunderstandingofthefinancialreport.ForthepurposesofpreparingthefinancialreporttheCompanyisaforprofitentity.ChimpchangeLimitedisacompanylimitedbysharesincorporatedinAustraliawhosesharesarepubliclytradedontheAustralianSecuritiesExchange.

(a) CompliancewithIFRS

TheConsolidatedFinancialReportofChimpchangeLimitedcomplieswithInternationalFinancialReportingStandards(IFRS)asissuedbytheInternationalAccountingStandardsBoard(IASB).

(b) HistoricalCostConvention

TheConsolidatedFinancialReportofChimpchangeLimitedhasbeenpreparedunderthehistoricalcostconventionwiththeexceptionofthesharebasedpaymentsreservethatismeasuredatfairvalue.

(c) PrinciplesofConsolidation

Theconsolidatedfinancialstatementsarethoseoftheconsolidatedentity("thegroup"),comprisingthefinancialstatementsoftheparententityandalloftheentitiestheparentcontrols.Thegroupcontrolsanentitywhereithasthepower,forwhichtheparenthasexposureorrightstovariablereturnsfromitsinvolvementwiththeentity,andforwhichtheparenthastheabilitytouseitspowerovertheentitiestoaffecttheamountofitsreturns.Thefinancialstatementsofsubsidiariesarepreparedforthesamereportingperiodastheparententity,usingconsistentaccountingpolicies.Adjustmentsaremadetobringintolineanydissimilaraccountingpolicieswhichmayexist.Allinter-companybalancesandtransactions,includinganyunrealisedprofitsorlosseshavebeeneliminatedonconsolidation.Subsidiariesareconsolidatedfromthedateonwhichcontrolistransferredtothegroupandarede-recognisedfromthedatethatcontrolceases. Non-controllinginterestsintheresultofsubsidiariesareshownseparatelyintheconsolidatedstatementofcomprehensiveincomeandconsolidatedstatementoffinancialpositionrespectively.

(d) ForeignCurrencyTranslationsandBalances

PresentationcurrencyThefinancialstatementsofeachentitywithintheconsolidatedentityaremeasuredusingthecurrencyoftheprimaryeconomicenvironmentinwhichthatentityoperates(thefunctionalcurrency).TheconsolidatedfinancialstatementsarepresentedinUSdollarswhichistheconsolidatedentity’sfunctionalandpresentationcurrency. TransactionsandbalancesTransactionsinforeigncurrenciesofentitieswithintheconsolidatedgrouparetranslatedintofunctionalcurrencyattherateofexchangerulingatthedateofthetransaction.

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Foreigncurrencymonetaryitemsthatareoutstandingatthereportingdate(otherthanmonetaryitemsarisingunderforeigncurrencycontractswheretheexchangerateforthatmonetaryitemisfixedinthecontract)aretranslatedusingthespotrateattheendofthefinancialyear. Non-monetaryitemsthataremeasuredintermsofhistoricalcostinaforeigncurrencyarenotretranslatedExceptforcertainforeigncurrencyhedges,allresultingexchangedifferencesarisingonsettlementorre-statementarerecognisedasrevenuesandexpensesforthefinancialyear. • Currentassetsandliabilitiesaretranslatedattheclosingrateonreportingdate;• Non-currentassetsaretranslatedathistoricalcost• Incomeandexpensesaretranslatedatactualexchangeratesoraverageexchangeratesfortheperiodwhere

appropriate;and• Allresultingexchangedifferencesarerecognisedinothercomprehensiveincome.

(e) RevenueProvidingservicesRevenueismeasuredatthefairvalueoftheconsiderationreceivedorreceivabletotheextentthatitisprobablethattheeconomicbenefitwillflowtotheCompanyandtherevenuecanbereliablymeasured.RevenueisderivedfromearningashareofinterchangerevenuederivedfrompurchasesmadeusingtheChimpChangebrandedprepaidcardsandfromearningfeeschargedtocustomers.InterestincomeInterestrevenueisrecognisedonaproportionalbasisusingtheeffectiveinterestmethodtakingintoaccounttheinterestratesapplicabletothefinancialassets. (f) IncometaxCurrentincometaxexpenseorrevenueisthetaxpayableonthecurrentperiod'staxableincomebasedontheapplicableincometaxrateadjustedbychangesindeferredtaxassetsandliabilities.Deferredtaxassetsandliabilitiesarerecognisedfortemporarydifferencesattheapplicabletaxrateswhentheassetsareexpectedtoberecoveredorliabilitiesaresettled.Deferredtaxliabilitiesarenotrecognisediftheyarisefromtheinitialrecognitionofgoodwill.Deferredincometaxisalsonotaccountedforifitarisesfrominitialrecognitionofanassetorliabilityinatransactionotherthanabusinesscombinationthatatthetimeofthetransactionaffectsneitheraccountingnortaxableprofitorloss. Deferredtaxassetsarerecognisedfordeductibletemporarydifferencesandunusedtaxlossesonlyifitisprobablethatfuturetaxableamountswillbeavailabletoutilisethosetemporarydifferencesandlosses.Currentanddeferredtaxbalancesattributabletoamountsrecogniseddirectlyinequityarealsorecogniseddirectlyinequity.(g) FinancialInstrumentsNonderivativefinancialinstruments Non-derivativefinancialinstrumentsconsistofinvestmentsinequityanddebtsecurities,tradeandotherreceivables,cashandcashequivalents,loansandborrowings,andtradeandotherpayables.Non-derivativefinancialinstrumentsareinitiallyrecognisedatfairvalue,plusdirectlyattributabletransactioncosts(ifany),exceptforinstrumentsrecordedatfairvaluethroughprofitorloss.Afterinitialrecognition,non-derivativefinancialinstrumentsaremeasuredasdescribedbelow.

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FinancialliabilitiesFinancialliabilitiesincludetradepayables,othercreditorsandloansfromthirdpartiesincludinginter-companybalancesandloansfromorotheramountsduetodirector-relatedentities.

Non-derivativefinancialliabilitiesarerecognisedatamortisedcost,comprisingoriginaldebtlessprincipalpaymentsandamortisation. Financialliabilitiesareclassifiedascurrentliabilitiesunlessthegrouphasanunconditionalrighttodefersettlementoftheliabilityforatleasttwelvemonthsafterthereportingperiod.

(h) Property,plant&equipment

Eachclassofplantandequipmentiscarriedatcostorfairvalueless,whereapplicable,anyaccumulateddepreciationandanyaccumulatedimpairmentlosses. PlantandequipmentPlantandequipmentismeasuredonacostbasis.DepreciationThedepreciableamountofallproperty,plantandequipmentisdepreciatedovertheirestimatedusefullivescommencingfromthetimetheassetisheldreadyforuse.Landandthelandcomponentofanyclassofproperty,plantandequipmentisnotdepreciated.

Classoffixedasset Depreciationrates DepreciationbasisMotorvehiclesunderlease 12.5% StraightlineOfficeequipment 25% StraightlineComputerequipment 25% Straightline

(i) Softwaredevelopment

Softwaredevelopmentcostsarecapitalisedwhenitisprobablethattheprojectwillbeasuccessconsideringitscommercialandtechnicalfeasibility;theentityisabletouseorselltheasset;thesoftwarewillgenerateprobablefutureeconomicbenefits;theentityhassufficientresourceandintenttocompletethedevelopmentanditscostscanbemeasuredreliably.Capitalisedsoftwaredevelopmentexpenditureisstatedatcostlessaccumulatedamortisation.Amortisationiscalculatedusingthestraight-linemethodtoallocatethecostoverthreeyears.Theassetcarryingvalueisreviewedforimpairmentannuallyandamountsarewrittenofftotheextentthatrealisablefuturebenefitsareconsideredtobenolongerprobable.

(j) Impairmentofnon-financialassets

Intangibleassetsaretestedannuallyforimpairment,ormorefrequentlyifeventsorchangesincircumstancesindicatethattheymightbeimpaired Animpairmentlossisrecognisedwherethecarryingamountoftheassetexceedsitsrecoverableamount.Therecoverableamountofanassetisdefinedasthehigherofitsfairvaluelesscoststosellandvalueinuse.

(k) Employeebenefits

ShorttermemployeebenefitobligationsLiabilitiesarisinginrespectofwagesandsalaries,annualleaveandanyotheremployeebenefitsexpectedtobesettledwhollywithintwelvemonthsofthereportingdatearemeasuredattheirnominalamountsbasedonremunerationrateswhichareexpectedtobepaidwhentheliabilityissettled.Theexpectedcostofshort-termemployeebenefitsintheformofcompensatedabsencessuchasannualleaveisrecognisedintheprovisionforemployeebenefits.Allothershort-termemployeebenefitobligationsarepresentedaspayables.

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LongtermemployeebenefitobligationsLiabilitiesarisinginrespectoflongserviceleaveandannualleavewhichisnotexpectedtobesettledwhollywithintwelvemonthsofthereportingdatearemeasuredatthepresentvalueoftheestimatedfuturecashoutflowtobemadeinrespectofservicesprovidedbyemployeesuptothereportingdate.Employeebenefitobligationsarepresentedascurrentliabilitiesinthebalancesheetiftheentitydoesnothaveanunconditionalrighttodefersettlementforatleasttwelvemonthsafterthereportingdate,regardlessofwhentheactualsettlementisexpectedtooccur.

(l) Goodsandservicestax(GST)

Revenues,expensesandpurchasedassetsinAustraliaarerecognisednetoftheamountofGST,exceptwheretheamountofGSTincurredisnotrecoverablefromtheTaxOffice.InthesecircumstancestheGSTisrecognisedaspartofthecostofacquisitionoftheassetoraspartofanitemoftheexpense.ReceivablesandpayablesintheconsolidatedstatementoffinancialpositionareshowninclusiveofGST.Cashflowsarepresentedintheconsolidatedstatementofcashflowsonagrossbasis,exceptfortheGSTcomponentofinvestingandfinancingactivities,whicharedisclosedasoperatingcashflows.

(m) Rounding

ThecompanyisofakindreferredtoinASICCorporations(RoundinginFinancial/Directors’Reports)Instrument2016/191,relatedtothe'roundingoff'ofamountsinthefinancialstatements.AmountsinthefinancialstatementshavebeenroundedoffinaccordancewiththatLegislativeInstrumenttothenearestthousanddollars,orincertaincases,thenearestdollar.

(n) Cashandcashequivalents

Forcash-flowpresentationpurposes,cashandcashequivalentsincludescashonhand,depositsheldatcallwithfinancialinstitutions,othershort-term,highlyliquidinvestmentswithoriginalmaturitiesofthreemonthsorlessthatarereadilyconvertibletoknownamountsofcashandwhicharesubjecttoaninsignificantriskofchangesinvalue.

(o) StandardsandInterpretationsOnIssueNotYetAdopted

TheDirectorshavereviewedallnewStandardsandInterpretationsthathavebeenissuedbutarenotyeteffectivefortheyearended30June2016.AsaresultofthisreviewtheDirectorshavedeterminedthatthereisnomaterialimpactofthenewandrevisedStandardsandInterpretationsontheGroupand,therefore,nochangeisnecessarytoGroupaccountingpolicies.

2. CriticalAccountingJudgements

Estimatesandjudgementsarecontinuallyevaluatedandarebasedonhistoricalexperienceandotherfactors,includingexpectationsoffutureeventsthatmayhaveafinancialimpactontheentityandthatarebelievedtobereasonableunderthecircumstances.TheGroupmakesestimatesandassumptionsconcerningthefuture.Theresultingaccountingestimateswill,bydefinition,seldomequaltherelatedactualresults.Theestimatesandassumptionsthathaveasignificantriskofcausingamaterialadjustmenttothecarryingamountsofassetsandliabilitieswithinthenextfinancialyeararediscussedbelow.

Estimatedimpairmentofgoodwillandothernon-currentassetsDeterminingwhethernon-currentassetsareimpairedrequiresanestimationofthevalueinuseofthoseassets.ThevalueinusecalculationrequiresthedirectorstoestimatethefuturecashflowsexpectedtoarisefromtheGroupandasuitablediscountrateinordertocalculatepresentvalue.Wheretheactualfuturecashflowsarelessthanexpected,amaterialimpairmentlossmayarise.

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Share-basedpaymentstransactionsTheGroupmeasuresthecostofequitysettledtransactionsbyreferencetothefairvalueoftheequityinstrumentsatthedateatwhichtheyaregranted.ThefairvalueisdeterminedbyusingeithertheBlackandScholesorBinomialmodeltakingintoaccountthetermsandconditionsuponwhichtheinstrumentsweregranted.Theaccountingestimatesandassumptionsrelatingtoequity-settledshare-basedpaymentswouldhavenoimpactonthecarryingamountsofassetsandliabilitieswithinthenextannualreportingperiodbutmayimpactprofitorlossorequity.

3. OperatingSegments

TheGroupisorganisedintoasingleoperatingsegmentbeingtheprovisionofmobilebankingservicesthroughtheChimpChangemobileapplicationdevelopedbytheCompany.

4. Revenue

2016 2015

US$000 US$000

Revenuefromservices 178 -

Interestincome 2 -

Totalrevenue 180 -

5. Expenses 2016 2015

US$000 US$000

Lossbeforeincometaxhasbeendeterminedafter:

Amortisationanddepreciation

Depreciationofproperty,plant&equipment 10 2

Amortisationofsoftwaredevelopmentcosts 265 -

Sharebasedpayments

Optionsissuedtodirectors,companysecretary&employees 970 1,018

Optionsissuedtoserviceproviders 599 -

Sharesissuedtoanadvisor 207 -

Employeebenefits

Employeebenefitssuperannuation/retirementplan 17 3

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6. IncomeTaxExpense

2016 2015

US$'000 US$'000

Reconciliationofincometaxexpenseandtaxatthestatutoryrate

Lossbeforeincometaxexpense (7,655) (2,166)

TaxattheAustraliantaxrateof30%(2015:30%) (2,296) (650)

Differencesinoverseastaxrates (468) (90)

Taxeffectofamountswhicharenotdeductible/(taxable)incalculating

taxableincome

Sharebasedpaymentsexpense 471 305

Other 26 (2)

Currentyeartaxlossesnotrecognised 2,267 437

Incometaxexpense - -

Deferredtaxassetsof$2,884,000(2015:$617,000)inrespectoftemporarydifferencesandtaxlosseshavenotbeenrecognized.

7. Currentassets-Cashandcashequivalents

2016 2015

US$000s US$000s

CashatBank 10,878 753

8. Currentassets–Receivables

2016 2015

US$000s US$000s

Otherreceivables 107 35

9. Currentassets–Otherassets

2016 2015

US$000 US$000

PrepaymentsOthercurrentassets

132

-2

Totalothercurrentassets 15 2

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10. Property,plantandequipment

2016 2015

US$000s US$000s

Motorsvehiclesunderlease 6 5

Accumulateddepreciation (1) -

Closingcarryingvalue 5 5

Officeequipmentatcost 38 15

Accumulateddepreciation (12) (3)

Closingcarryingvalue 26 12

Totalproperty,plant&equipment 31 17

ReconciliationofmovementReconciliationofthecarryingamountsofproperty,plant&equipmentatthebeginningandendofthefinancialyear

Motorvehicle Office Total

underlease Equipment

US$000s US$000s US$000s

2015

Openingcarryingamount 5 12 17

Additions 1 23 24

Depreciationexpense (1) (9) (10)

Closingcarryingamount 5 26 31

2014

Openingcarryingamount - 4 4

Additions 5 10 15

Depreciationexpense - (2) (2)

Closingcarryingamount 5 12 17

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11. Intangibleassets

2016 2015

US$000 US$000

Softwaredevelopmentatcost 1,076 626

Accumulatedamortisationandimpairment (265) -

Totalsoftwaredevelopment 811 626

Movementsincarryingamounts

Openingcarryingamount 626 229

Additions 394 460

Amortisationexpense (265) -

Netforeigncurrencymovement 56 (63)

Closingcarryingamount 811 626

12. Tradeandotherpayables

2016 2015

US$000 US$000

Unsecuredliabilities

Accountspayable 359 48

TheGrouphasfinancialriskmanagementpoliciesinplacetoensurethatallpayablesarepaidwithinthecredittimeframe.

13. Provisions

2016 2015

US$000s US$000s

Employeeleaveprovisions 101 21

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14. Othercurrentliabilities

2016 2015

US$000 US$000

Sharesubscriptionfundsreceivedinadvanceofshareissue - 768

Otherliabilities 22 -

Totalothercurrentliabilities 22 768

15. Issuedcapital(i) ShareCapital

2016 2015

US$000 US$000

57,330,640fullypaidordinaryshares1(30June201523,415,530) 18,714 1,914

1Thisamountexcludes6,150,743sharesissuedundertheLoanFundedSharePlan(LFSP).TheseshareswillberecognisedinShareCapitalwhentheloanadvancedundertheLFSPtoacquirethosesharesisrepaid.Totalfullypaidsharesonissueis63,481,383.

(ii) Movementsinordinarysharecapital

Number US$000

Balanceat30June2014 3,517 1,102

Shareplacement-19November2014 400 468

Sharesplit-19Jan2015 19,996,083 -

SharePlacement-16February2015 3,415,530 1,067

Transactionfees (723)

Balanceat30June2015 23,415,530 1,914

ShareplacementA$0.55pershare–31July2015 5,559,926 2,265

ShareplacementA$0.70pershare–21December2015 7,890,184 4,033

ExerciseofoptionsatA$0.35pershare–1February2016 1,355,000 337

IssueofsharesforadvisoryservicesatA$0.75pershares–20April2016

360,000 207

SharesissuedpursuanttoaninitialpublicofferingatA$0.80pershare–30June2016

18,750,000 11,139

Transactionfees (1,181)

Balanceat30June20161 57,330,640 18,714

1Thisamountexcludes6,150,743sharesissuedundertheLoanFundedSharePlan(LFSP).TheseshareswillberecognisedinShareCapitalwhentheloanadvancedundertheLFSPtoacquirethosesharesisrepaid.Totalfullypaidsharesonissueis63,481,383.

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OrdinarysharesentitletheholdertoparticipateinthedividendsandtheproceedsonwindingupoftheCompanyinproportiontothenumberofandamountspaidonthesharesheld.Onashowofhandseveryholderofordinarysharespresentatameetinginpersonorbyproxyisentitledtoonevoteanduponapolleachisshareisentitledtoonevote.CapitalManagementManagementcontrolsthecapitaloftheCompanyinordertoensuretheCompanycanfunditsoperationsandcontinueasagoingconcern.

16. Reserves

2016 2015

US$000 US$000

Sharebasedpaymentsreserve 3,291 1,722

Foreigncurrencytranslationreserve (1) (51)

Closingcarryingamount 3,290 1,671

(a) MovementinSharebasedpaymentreserve

Openingbalance 1,722 14


Balanceat30June2016 3,291 1,722

(b) MovementinForeigncurrencytranslationreserve

Openingbalance (51) 12

Exchangedifferencesarisingontranslationofparentoperation 50 (63)

Balanceat30June2016 (1) (51)

SharebasedpaymentreserveThereserveisusedtorecognisethevalueofoptionsissuedtoemployers,directorsandotherpartiesaspartoftheirremunerationofaspartoftheircompensationforservicesprovidedtotheGroup.

ForeigncurrencytranslationreserveThereserveisusedtorecogniseexchangedifferencesarisingfromthetranslationofthefinancialstatementsoftheholdingcompanytoUnitedStatesdollars.

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17. Reconciliationofprofitafterincometaxtonetcashinflowfromoperatingactivities

2016 2015

US$000 US$000

Lossfortheyear (7,655) (2,166)

Depreciationandamortisation 275 2

Sharebasedpayments 1,776 1,018

Decrease(increase)incurrentreceivables (84) (37)

Increase(decrease)incurrentliabilities 411 80

Netcashusedinoperatingactivities (5,277) (1,103)

18. Earningspershare

2016 2015

US$000 US$000

LossattributabletoordinaryequityholdersofChimpchangeLimited (7,655) (2,166)

Weightedaveragenumberofordinarysharesusedasadenominator

incalculatingbasicearningspershares 33,424,881 20,455,590

Weightedaveragenumberofordinarysharesanddilutivepotentialordinarysharesusedasadenominatorcalculatingdilutedearnings

pershare 33,424,881 20,455,590

19. DividendTherewenodividendspaid,recommendedordeclaredduringthecurrentorpreviousperiod.

20. Eventsoccurringafterthereportingperiod

Nomattersorcircumstanceshavearisensincetheendofthefinancialyearwhichsignificantlyaffectstheoperationsoftheconsolidatedgroup,theresultsofthoseoperationsofthestateofaffairsoftheconsolidatedgroupgoingforward.

21. Financialriskmanagement

TheGroup'sactivitiesmayexposeittoavarietyoffinancialrisks:marketrisk(includingcurrencyrisk,interestrateriskandpricerisk),creditriskandliquidityrisk.TheGroup'soverallriskmanagementprogramfocusesontheunpredictabilityoffinancialmarketsandseekstominimisepotentialadverseeffectsonthefinancialperformanceoftheGroup.RiskmanagementiscarriedoutbyseniormanagementinconsultationwiththeBoardofDirectors.TheBoardprovidesprinciplesforoverallriskmanagement,aswellasdirectioninspecificareas.

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MarketRiskForeigncurrencyriskTheGrouphastransactionalcurrencyexposures.SuchexposuresarisefromtransactionsbytheGroupincurrenciesotherthanthefunctionalcurrency.Atbalancedate,theGrouphadthefollowingexposurestoAustraliandollars(AUD)thatarenotdesignatedcashflowhedges.

Asat30June 2016 2015

A$000 AS$000

Cashatbank 14,006 157

Currentassets 94 45

Currentliabilities (335) (33)

Netmonetaryassets/liabilitiesdesignatedinAUD 13,765 169

TheCompanyreceivedproceedsofA$13,974,207on30June2016fromtheinitialpublicofferingofA$15,000,000netofbrokermanagementfees.ImmediatelyfollowingyearendtheCompanytransferredcashintoUSDdenominatedaccountsandtookoutforwardexchangecontractsinordertomatchthecurrencyexposureofcashholdingandforwardcontractswiththecurrencyofexpectedcashrequirements.

InterestrateriskInterestrateriskisconsideredimmaterialastheGroup’sonlyexposuretointerestrateriskiscashatbank.PriceriskTheGroupisnotexposedtoanysignificantpricerisk.

CreditRisk

CreditriskreferstotheriskthatacounterpartywilldefaultonitscontractualobligationsresultinginafinanciallosstotheGroup.TheGroupdeemeditscreditrisktobeminimalasitsfinancialassetsaremainlycashheldatBankwestwhichisasubsidiaryofCommonwealthBankofAustralia.

LiquidityRisk

TheGroupmanagesliquidityriskbymaintainingadequatecashbalancesandbycontinuouslymonitoringforecastsandactualcashflowsmatchingmaturityprofilesoffinancialassetsandliabilities.FinancingarrangementsTheGroupdoesnothaveaccesstoanyundrawnborrowingfacilitiesattheendofthereportingperiod.MaturitiesoffinancialliabilitiesAtperiodendtheGrouphadaccountspayableof$359,000(2015:$48,000)allofwhichhaveamaturityoflessthan6months.TheGrouphasnootherfinancialliabilities.

22. Share-basedpayments

Director&Employeeoptions

1,870,000optionswereissuedtoemployeesduringthefinancialyearpursuanttotheEmployeeShareOptionPlan.Theseoptionshaveastrikepricesof$1.00andexpireon18April2018.Theoptionshavevariousvestingconditionsparticulartoeachemployee.

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1,100,000optionswereissuedtosomedirectorsandthecompanysecretaryduringthefinancialyear.Theseoptionshaveastrikepriceof$1.00andexpireon31December2018.Theoptionsvestedimmediately.3,500,000optionswereissuedtotheManagingDirectorwithtermsasfollows:

StrikePrice Numberofoptions ExpiryDate VestingCondition

A$1.00 1,000,000 31Dec2018 Nil

A$1.50 1,000,000 18Apr2021 SharepricereachesA$2.001

A$2.25 1,500,000 18Apr2021 SharepricereachesA$3.001

110dayVWAPTheoptionsissuedtodirectorsandemployeeswithnovestingconditionswerevaluedusingtheBlack-Scholesmethodologyandexpensedatgrantdate.TheoptionsissuedtothedirectorandtheemployeeswithvestingconditionswerevaluedusingtheBinomialOptionPricingModelandwillbeexpensedovertermsofthevestingperiods.Forthepurposeofvaluingtheseoptionsthefollowingadditionalinputswereused.(i) Sharepriceatgrantdate-$0.80;(ii) Volatility–75%(iii) Riskfreerate–1.96%(iv) Expecteddividendyield–0%

Thetotalexpenseforthe2016financialyearforoptionsissuedtodirectors,thecompanysecretaryandtheemployeeswas$969,802.Thisincludesexpenseof$238,304relatingtooptionsissuedpriortothe2016financialyear.ThisexpenseisincludedwithintheEmployeeBenefitsandConsultantsexpenseclassificationswithintheStatementofProfitandLoss.

Optionsissuedtoserviceproviders

3,010,595optionswereissuedtoserviceprovidersduringtheyearasfollows:

StrikePrice Numberofoptions ExpiryDate VestingConditions

A$1.00 510,595 30Jun2017 Nil

A$1.00 1,000,000 18Apr2019 Various

A$1.00 1,500,000 20Apr2019 Nil

SharesissuedtoserviceprovideswereissuedaspartofthecompensationforservicesprovidedtotheCompany.Theoptionswerevaluedatthefairvalueoftheservicesprovided.Theoptionswithnovestingconditionswereexpensedatgrantdate.Theoptionswithvestingconditionswillbeexpensedoverthelifeoftheoptions.Theexpenseforthe2016financialyearwas$598,959andisincludedwithintheConsultantsexpenseclassification.Sharesissuedtoadvisor

360,000shareswereissuedtoanadvisoroftheCompanyforcapitalmarketsadvisoryservices.Theshareswereissuedatthefairvalueofservicesprovidedof$207,000andexpensedatissueddate.ThisexpenseisincludedwithintheConsultantsexpenseclassification.

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23. Subsidiaries

Theconsolidatedfinancialstatementsincludetheassets,liabilitiesandresultsofthefollowingsubsidiaries:NameofEntity Countryof Holding Equity Holding

Incorporation 2016 2015

% %

ChimpchangeLLC USA Membershipunits 100 100

ChangeLabsNZPtyLtd Australia OrdinaryShares 100 -

24. AccumulatedLosses


US$000 US$000

Openingbalanceofaccumulatedlosses (2,989) (823)

Lossfortheperiod (7,655) (2,166)

Closingbalanceofaccumulatedlosses (10,644) (2,989)

25. ParententityfinancialinformationTheindividualfinancialstatementsfortheParententityshowthefollowingaggregateamounts:Asat30June 2016 2015

A$000 A$000

Currentassets 10,471 155

Non-currentassets 7,137 2,555

Totalassets 17,608 2,710

Currentliabilities 249 793

Totalliabilities 249 793

NetAssets 17,359 1,917

Shareholders’equity

IssuedCapital 18,714 1,194

Reserves 3,290 1,671

RetainedEarnings (4,645) (1,668)

Totalshareholders’equity 17,359 1,917

Lossfortheperiod (2,977) (1,253)

Totalcomprehensiveloss (2,927) (1,316)

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26. Keymanagementpersonneldisclosures

Directors

ThefollowingpersonsweredirectorsofChimpchangeLimitedduringthefinancialyear:Non-executivedirectorsPeterClare–ChairmanBenHarrisonExecutiveDirectorsAshleyShilkin–ManagingDirectorIanLeijer–ChiefFinancialOfficerOtherkeymanagementpersonnel

Thefollowingpersonsalsohadresponsibilityforplanning,directingandcontrollingtheactivitiesoftheGroup,directlyorindirectly,duringthefinancialyear.TheyareemployedbyChimpchangeLLCClaytonFossett-ChiefOperatingOfficerNickRoberts–ChiefMarketingOfficerKeymanagementpersonnelcompensation

2016 2015 US$000 US$000

Shorttermemployeebenefits 1,344 339

Post-employmentbenefits 5 -

Sharebasedpayments 806 978

Total 2,155 1,317

Detailedremunerationdisclosuresareprovidedintheremunerationreport.

27. Remunerationofauditors

TheauditorofChimpchangeLimitedisPitcherPartners


US$ US$

Amountsreceivedordueandreceivableforcurrentauditors:

Anauditorreviewofthefinancialreportoftheentityandanyotherentityintheconsolidatedgroup 43,632 31,080

OtherservicesinrelationtotheentityandanyotherentityintheconsolidatedGroup–taxcompliance,taxstructuring,independentexpertreportfortheinitialpublicoffering

38,224 -

Total 81,856 31,080

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28. RelatedPartyTransactionsTransactionswithrelatedpartiesThefollowingtransactionsoccurredwithrelatedparties.

2016 2015

US$ US$

Paymentforgoodsandservices

PaymentstoSharedRunwayPtyLtdassociatedwithPeterClare 40,144 6,315

PaymentstoRiverfireCapitalPtyLtdassociatedwithBenHarrison 86,324 54,259

PaymentstoUnimainPtyLtdassociatedwithIanLeijer 124,574 39,905

LoanstoDirectorsandtheirrelatedentities

LFSP1loantoMrShilkin(A$1,752,906) 1,301,708 -

LFSP1toentityassociatedwithMrLeijer(A$399,854) 296,932 -

1LoanFundedSharePlans

Optionsissuedtodirectorsanddirectorrelatedentities 735,370 959,227

SubscriptionsfornewordinarysharesbyKMPasaresultofexerciseofoptionsandsettledwithcash 336,730 -

29. Contingentliabilities

TheGroupasnocontingentliabilitiesasat30June2016.

30. CommitmentsTheGroupasnocommitmentsasat30June2016.

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DIRECTORSDECLARTIONS Intheopinionofthedirectors:(a) thefinancialstatementsandnotessetoutonpages30to50areinaccordancewiththeCorporationsAct2001,

including:(i) complyingwithAustralianAccountingStandardsandtheCorporationsRegulations2001andothermandatory

professionalreportingrequirements;and(ii) givingatrueandfairviewofthegroup’sfinancialpositionasat30June2016andofitsperformanceforthe

financialyearendedonthatdate;and

(b) therearereasonablegroundstobelievethatthegroupwillbeabletopayitsdebtsasandwhentheybecomedueandpayable;and

Note1(a)confirmsthatthefinancialstatementsalsocomplywithInternationalFinancialReportingStandardsasissuedbytheInternationalAccountingStandardsBoard.Thedirectorshavebeengiventhedeclarationsbythemanagingdirectorandchieffinancialofficerrequiredbysection295AoftheCorporationsAct2001.Thisdeclarationismadeinaccordancewitharesolutionofthedirectors.30September2016

AshleyShilkin


ChimpchangeLimited

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INDEPENDENTAUDITORSREPORT

Independent Auditor’s Report To the Members of ChimpChange Ltd

We have audited the accompanying financial report of ChimpChange Ltd, which comprises the consolidated statement of financial position as at 30 June 2016, the consolidated statement of comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration of the consolidated entity comprising the company and the entities it controlled at the year’s end or from time to time during the financial year.

Directors’ Responsibility for the Financial Report

The directors of the company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In Note 1, the directors also state, in accordance with Accounting Standard AASB101 Presentation of Financial Statements, that the financial statements comply with International Financial Reporting Standards.

Auditor’s Responsibility

Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the company’s preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

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Independence

In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001.

Opinion In our opinion,

(a) the financial report of ChimpChange Limited is in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the consolidated entity’s financial position as at

30 June 2016 and of its performance for the year ended on that date; and (ii) complying with Australian Accounting Standards and the Corporations

Regulations 2001; and (b) the financial report also complies with International Financial Reporting Standards

as disclosed in Note 1.

Report on the Remuneration Report

We have audited the Remuneration Report included in pages 13 to 19 of the directors’ report for the year ended 30 June 2016. The directors of the company are responsible for the preparation and presentation of the Remuneration Report in accordance with Section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.

Opinion

In our opinion the Remuneration Report of ChimpChange Limited for the year ended 30 June 2016 complies with Section 300A of the Corporations Act 2001.

PITCHER PARTNERS J. J. EVANS Partner Brisbane, Queensland 30 September 2016

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ASXADDITIONALDISCLOSURE

Top20ShareholdersRank Name Numberof %ofIssued

Shares Capital

1 ASHLEYSHILKIN 11,901,965 18.75%2 AVATARINDUSTRIESPTYLTD 10,762,463 16.95%3 BARTPROPERTIESPTYLTD 3,052,143 4.81%4 ALTORPRIVATEEQUITYPTYLTD* 2,837,662 4.47%5 NAREENENPTYLTD 2,672,529 4.21%6 BONDSTREETCUSTODIANSLIMITED* 1,455,000 2.29%

7 CITICORPNOMINEESPTYLIMITED 1,348,343 2.12%8 MRROSSALLENMCDONALD 1,069,262 1.68%9 PERSHINGAUSTRALIANOMINEESPTYLTD 900,000 1.42%10 NATIONALNOMINEESLIMITED* 891,250 1.40%11 ABNAMROCLEARINGSYDNEYNOMINEESPTYLTD 716,136 1.13%12 JPMORGANNOMINEESAUSTRALIALIMITED 629,545 0.99%

13 FALCASTLEPTYLTD 589,000 0.93%14 WSDOBSONPTYLTD 556,753 0.88%15 PINNACLESUPERANNUATIONPTYLIMITED 500,000 0.79%16 MRDAVIDFREDERICKOAKLEY 434,286 0.68%17 BLUEFLAGINVESTMENTSPTYLTD 428,571 0.68%18 BONNIPPTYLTD 377,500 0.59%

19 CSFOURTHNOMINEESPTYLIMITED 376,521 0.59%20 CHELMEREPTYLTD 366,589 0.58%

Top20Total 41,865,518 65.95% TotalSharesonIssue 63,481,383

ShareholdingDistributionRange Securities Numberof Holders

1to1,000 18,650 341,001to5,000 500,143 1485,001to10,000 1,175,033 15710,001to50,000 6,614,442 272

50,001to100,000 4,717,185 62100,001andOver 50,455,930 74

Total 63,481,383 747 UnmarketableParcels 9,650 25

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