Urbanise.com Annual Report 2019

22. Cash flows from operations reconciliation Cash and cash equivalents 2019 $ 2018 $ Cash at bank 3,702,341 3,072,098 Cash on hand – 108 Total cash and cash equivalents 3,702,341 3,072,206 Cash at banks earn interest at floating rates based on daily bank deposit rates. Cash flow information 2019 $ 2018 $ Profit/(Loss) for the year: (4,754,740) (27,560,041) Non-cash items: Depreciation and amortisation 1,220,666 2,426,985 Share based payments 626,133 40,042 Unrealised foreign exchange 73,827 (378,127) Movements in reserves 73,352 (399,603) (Profit)/loss on disposal of fixed assets – (374,578) Impairment of intangible assets – 15,468,333 Impairment of inventory 1,535 996,830 Impairment of PPE – 142,449 Impairment/(impairment reversal) of trade debtors 356,289 (428,300) Other (978,144) (103,215) Changes in net assets and liabilities: Decrease/(increase) in trade and other receivables (17,013) 1,025,674 Decrease/(increase) in inventory – 1,038,547 Decrease/(increase) in other assets 48,194 621,989 Increase/(decrease) in trade and other payables (253,144) (226,893) Increase/(decrease) in employee provisions (74,951) (597,895) Increase/(decrease) in tax payable – 62,222 Increase (decrease) in deferred income 1,175,823 246,413 Net cash used in operating activities (2,502,174) (7,999,168) Non-cash financing and investing activities There were no significant non-cash financing and investing transactions during financial year 30 June 2019 (2018: $Nil). 23. Financial risk management The Group’s principal financial liabilities comprise of trade and other payables. The main purpose of these financial liabilities is to facilitate the Group’s operations. The Group’s principal financial assets comprise of trade and other receivables, cash and short-term deposits. The main purpose of these financial liabilities is to facilitate the Group’s operations. The Group is exposed to market risk, credit risk and liquidity risk. The Group’s senior management oversees the management of these risks supported by the boards Audit and Risk Committee. It is the Group’s policy that no trading in derivatives for speculative purposes may be undertaken. The board of directors has overall responsibility for identifying and managing operational and financial risks and mitigate through appropriate controls and risk limits. Notes to the Consolidated Financial Statements for the year ended 30 June 2019 (continued) 71