Ann: Annual Financial Report 30 June 2013 , page-8

I have found something VERY, VERY suspicious in the accounts.

Now I know it will surprise many that such a thing would happen, but here it is.

On page 50, there is the following;

"26. Non-controlling interest

Prime Biologics Pte Ltd acquired property, plant and equipment and embedded intellectual property from A-Bio Pharma Pte Ltd (Luye). The consideration can be settled at Prime Biologics Pte Ltd's discretion in cash or shares subject to certain pre-conditions. A liability to pay S$6,000,000 ($5,117,271) in cash may arise if an investor in PrIME Biologics Pte Ltd is not secured, the Company is currently in discussions with Luye to extend the settlement date. In the event consideration is settled in equity, there is an option for Luye to subscribe for an additional 10% of the equity in Prime Biologics Pte Ltd for a fixed subscription of S$6,000,000. This option has been valued at $50,260 and recognised at 30 June 2013 as part of Non-controlling Interest."

So a liability of S$6m (A$5.1m) is payable in cash, as has been previously reported.

So this is a LIABILITY, right? So it should appear in the LIABILITY side of the balance sheet. So why does it appear in the EQUITY side?

This has a fundamental impact on the balance sheet and the results. If this is indeed a liability, then the company loss was $6.9m.