FOR THE YEAR ENDED 30 JUNE 2014 568 804 NOTES TO THE CONSOLIDATED

For the year ended 30 june 2014 568 804 notes to the

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FOR THE YEAR ENDED 30 JUNE 2014 ABN 39 010 568 804 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 30 June 2014 30 June 2013 $ $ 10 Other financial liabilities Current Bank overdraft - secured 275,000 875,116 Secured advances under contract 482,438 450,360 Unsecured other loans 15,607 3,171 Secured convertible notes - 75,000 773,045 1,403,647 Non Current Secured convertible notes 1,438,696 1,509,975 Secured advances under contract 403,731 915,482 Unsecured convertible notes 443,730 397,607 Unsecured other loans 300,000 300,000 2,586,157 3,123,064 Bank Facilities Secured advances under contract Secured convertible notes Face Value Maturity Conv. Price - Secured convertible notes - New issue (a) $650,000 Jan 2016 $0.12 - Secured convertible notes - Notes with maturity date extension (b) $1,025,000 Jul 2015 $0.12 - Interest rate 8% - Potential ordinary shares on conversion 13,958,333 (a) (b) Unsecured convertible notes Face Value Maturity Conv. Price - Unsecured convertible notes $500,000 July 2015 $0.12 - Interest rate 8% - Potential ordinary shares on conversion 4,166,667 At balance date the Company had secured advances under a contract with Inmarsat PLC to develop and manufacture products compatible with the Inmarsat hand held satellite phone. Advances are secured by a charge over the Intellectual Property developed under the agreement, are non- interest bearing and are repaid as a percentage of product sale proceeds. During the current year the Company repaid $457,270 excluding realised and unrealised exchange differences. At 30 June 2014 secured convertible notes with a face value of $1,675,000 were outstanding on the following terms: Secured by a second ranking fixed and floating charge over all the assets of the parent company. On 24 February 2014 the company completed a placement of ordinary shares at a price of $0.15 per share. Under the terms of the Convertible Note Deed the conversion price of all previously issued convertible notes was adjusted to 80% of the price at which these new shares were issued, which is $0.12. During August 2012 the company negotiated the extension of the maturity date with note holders holding notes with a total face value of $1,025,000 to July 2015. Note holders were issued with 435,000 options to subscribe for shares in the Company at various exercise prices. At 30 June 2014 unsecured convertible notes with a face value of $500,000 were outstanding on the following terms: Note holders were issued with 178,572 options to subscribe for shares in the Company at a price of $0.70 per share. On 24 February 2014 the company completed a placement of ordinary shares at a price of $0.15 per share. Under the terms of the Convertible Note Deed the conversion price of all previously issued convertible notes was adjusted to 80% of the price at which these new shares were issued, which is $0.12. All bank facilities are secured by first ranking Registered Mortgage Debenture over the Consolidated Group's assets including uncalled capital and called but unpaid capital. Year ended 32
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WORLD REACH LIMITED AND CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2014 ABN 39 010 568 804 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 30 June 2014 30 June 2013 $ $ 11 Provisions Current Employee benefits 649,849 347,092 Warranty costs 80,000 20,000 729,849 367,092 Non current Employee benefits 29,630 34,719 (a) Employee Warranty Total benefits costs
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