1999 Annual Report - Altium

Protel International Limited
and Controlled Entities
Redeemable Preference Shares
On 29 March 1999, the company issued preference shares
to a number of investors at a total value of $4,000,000.
The liability for preference shares converted to ordinary
share capital in Protel International Limited on allotment
of shares during the company's Initial Public Offering.
Preference shareholders were entitled to receive all noncumulative
dividends declared or payable on the
preference shares at the same rate as that declared or
payable in respect of ordinary shares.
If the preference shares had not been converted to
ordinary shares during the company's Initial Public
Offering, the liability for preference shares would have
been redeemable on or before 30 June 2003 at face value,
with interest payable at 30% to 35% per annum. The
preference shares were converted to ordinary shares on
30 July 1999.
Convertible Notes
On 16 September 1998 the company issued, as part
consideration for a technology acquisition, an unsecured
US$300,000 convertible note. This convertible note was
converted to ordinary shares in Protel International
Limited at a cost of $0.70 per share on 4 August 1999. If
the option had not been exercised within 30 days of
completion of the Initial Public Offering, the company
would have been able elect to repay the face value of the
convertible note with interest at 8.5% per annum.
On 4 August 1999, the company received a conversion
notice from the holder of the convertible note above. It
allotted shares under a resolution of the board of directors
and subsequently sought application from the ASX to list
these shares as part of its ordinary shares on issue.
17. Provisions
Notes to the Financial Statements
On 16 April 1999, the company issued a second
unsecured convertible note for US$350,000 as part
consideration for another technology acquisition. This
convertible note was converted to ordinary shares in
Protel International Limited at a cost of $1.50 per share
on 9 August 1999. If the option had not been exercised
within 30 days of the completion of the Initial Public
Offering, the company would have been able to elect to
repay the face value of the convertible note with interest
at 7% per annum.
On 9 August 1999, the company received a conversion
notice from the holder of the second convertible note. It
allotted shares under a resolution of the board of directors
and subsequently sought application from the ASX to list
these shares as part of its ordinary shares on issue.
Deferred Consideration
Deferred consideration outstanding at 30 June 1999 on
technology acquisitions and licenses are unsecured. At
30 June 1998, $154,550 of the deferred consideration
outstanding on one technology acquisition was secured by
a mortgage over the present and future property of Protel
Technology, Inc.
Deferred consideration on technology acquisitions and
licenses matures at various dates up to 16 September 2001.
Interest is payable on deferred consideration between 0%
and 8.5% per annum (1998: 0% and 8% per annum).
Commercial bills
Schedule 4/11
The commercial bills outstanding as at 30 June 1998 was
secured by the following:
(a) Registered mortgage debenture over the assets and
undertakings of Protel International Limited.
(b) Unlimited director's guarantee from Nicholas Martin,
Aram Mirkazemi and David Warren.
Consolidated Company
30 June 1999 30 June 1998 30 June 1999 30 June 1998
$ $ $ $
Current
Employee entitlements 364,324 219,379 277,247 140,541
Provision for taxation 622,091 718,866 650,524 685,146
Provision for dividend - 400,000 - 400,000
Non-Current
986,415 1,338,245 927,771 1,225,687
Employee entitlements 55,850 38,550 55,850 38,550
Deferred income tax 651,224 77,469 651,224 77,469
707,074 116,019 707,074 116,019
ANNUAL REPORT 27