PROPERTY CONNECT HOLDINGS LIMITED ABN 27 091 320 464 … · groups sit within the US National Multifamily Housing Council’s (“NMHC)” 2016 Top 50 Rankings. In addition to the

Level1,Suite2,47HavelockStreet,WestPerth,WA6005

PROPERTYCONNECTHOLDINGSLIMITED

ABN27091320464

ANDCONTROLLEDENTITIES

FINANCIALREPORT

FORTHEYEARENDED

30JUNE2016

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PROPERTYCONNECTHOLDINGSLIMITEDFINANCIALREPORT30JUNE2016

Page2

TABLEOFCONTENTS CORPORATEDIRECTORY.......................................................................................................................................................3

OPERATINGANDFINANCIALREVIEW............................................................................................................................4

DIRECTORSREPORT.................................................................................................................................................................6

AUDITOR'SINDEPENDENCEDECLARATION.............................................................................................................12

CONSOLIDATEDSTATEMENTOFPROFITORLOSSANDOTHERCOMPREHENSIVEINCOME.................................................................................................................................................13

CONSOLIDATEDSTATEMENTOFFINANCIALPOSITION.....................................................................................14

CONSOLIDATEDSTATEMENTOFCHANGESINEQUITY.......................................................................................15

CONSOLIDATEDSTATEMENTOFCASHFLOWS.......................................................................................................16

NOTESTOTHEFINANCIALSTATEMENTS..................................................................................................................17

DIRECTORS'DECLARATION...............................................................................................................................................35

INDEPENDENTAUDITOR'SREPORT..............................................................................................................................36

ADDITIONALASXINFORMATION...................................................................................................................................39

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CORPORATEDIRECTORYDIRECTORS PeterFriend(Chairman) TimManson(CEO) SamLee MichaelLangoulantSECRETARY MichaelLangoulantREGISTEREDOFFICE Level1,Suite2 47HavelockStreet WestPerthWA6005 Ph:(08)63135140 Fax:(08)93242977USOFFICE 12575BeatriceStreet LosAngeles,CaliforniaUSA90066SHAREREGISTER ComputershareInvestorServicesPtyLimited Level3 60CarringtonStreet SydneyNSW2000 Ph:(02)82345000AUDITOR PitcherPartners Level22,MLCCentre 19MartinPlace SydneyNSW2000BANKERS WestpacBankLimited CnrPitt&HunterStreets SydneyNSW2000STOCKEXCHANGELISTING Property Connect Holdings Limited shares are listed on the Australian Securities

Exchange(ASXCode:PCH)WEBSITEADDRESS www.propertyconnect.comCORPORATEGOVERNANCESTATEMENT www.propertyconnect.com

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OPERATINGANDFINANCIALREVIEWCORPORATEOn15March2016,PropertyConnectHoldingsLimited (formerlyConquestAgriLimited) (“PCH”or the “Company”)completed the acquisition of 100% of the shares of Property Connect Inc (“PCI”) pursuant to a stock purchaseagreementdated9October2015andaswasapprovedbyshareholdersatageneralmeetingon16December2015,andpursuanttoareplacementprospectusdated13January2016.Theacquisitionwascompletedbywayofissueof120millionsharesatapriceof$0.05pershareandamaximumof80,000,000sharesbasedonrevenuetargetsforthecalendaryearended31December2017.ThistransactionresultedinallexistingconvertibledebtbeingconvertedintoPCHordinarysharesaswellastheraisingof$2.5million(beforeissuecosts)inworkingcapitalthroughtheprospectusissue.TheGroup isdeveloping technology forusewithin theUS real estatemarketwitha focusof themassiveUS “multi‐family”apartmentmarket.PRODUCTDEVELOPMENTTheGrouphas been developing its LiveOfferTM technology since 2013 andhas had the initial version LiveOfferTMv1beingtestedbyvariousmarketparticipants.ThecorporatechangesduringthelastyearhaveallowedtheCompanytoinitiatethedevelopmentofLiveOfferTMv2.InNovember2015,theGroupconsolidateddevelopmentpartnershipswithpropertymanagementgroupstobuildoutadesignroadmapoffeaturesandimplementationimprovementtoadaptLiveOfferTMv1specificallyforthemultifamilyindustrysector.InDecember2015, theGroupbegananengineeringdevelopmentpartnershipwithsoftwaredeveloperApmasphericPty Ltd to build out the engineering for LiveOfferTM v2. In February 2016, a LiveOfferTM v2 prototype design wascompleted,inaccordancewiththeroadmap,,andthefinaldesignconstructionwashandedtoApmaspherictocompleteengineeringdevelopment.The launch for LiveOfferTM v2 for pilot testing is anticipated shortly, with the commercial launch anticipated inDecember2016quarterBUSINESSDEVELOPMENTIn the past 12months theGrouphas taken great steps inmoving fromour conception as an innovative real estatetechnologycompanytoquicklyemergingasamajor influencerintheUSmultifamily industry. Inparticular,overthelast year theGrouphas exceeded its business development goals andhas positioned itself and firmly engagedwithsignificantclientsfromarelationshipandimplementationperspective.AsatSeptember2016,oureffortshaveearnedtheGroupagreementswith2ofthetop50USapartmentownersandmanagementgroups(HuntCompaniesandZRSManagement), Inaddition, theGroupis indetaileddiscussionswith5additional topmanagement groups:GreystarRealEstatePartners,PinnaclePropertyManagement,Bridge InvestmentGroup,Apartment Investment andManagement Company (Aimco), andEdwardRoseBuildingEnterprise. All of thesegroupssitwithintheUSNationalMultifamilyHousingCouncil’s(“NMHC)”2016Top50Rankings.Inaddition to theUSMultifamilypropertymanagement sector, theGrouphasalsoprogressed into thesingle familyrentalmarket.SellstatePartnersRealtysignedanMSAwiththeGroupinJune2016.ThroughthisstrategicalliancewithSellState,theGroupispoisedtoenterthesinglefamilyhomerentalmarket‐targetingfundsincludingbutnotlimitedtotheBlackstoneGroupandtheStarwoodWaypointResidentialTrust.BUSINESSDEVELOPMENTPARTNERSTheGrouphasbeenworkingwith4pilotindustrypartners,Hunt,ZRS,BonaventureRealtyGroup,EuropeanInvestmentManagementCorp(EIMC),incollaboratingonproductdevelopment.Briefdetailsof thekeypropertymanagementgroups thatwearebuildingpartnership relationshipswith (and theirrankingsaccordingtotheNMHCTop50RankingsforApartmentManagersbyunitsundermanagement)are:

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Greystar(#1)–451,000apartmentunitsundermanagement Pinnacle(#3)–134,000apartmentunitsundermanagement EdwardRose(#12)–60,400apartmentunitsundermanagement Aimco(#19)–53,600apartmentunitsundermanagement BridgeInvestmentGroup(#42)–31,600apartmentunitsundermanagement ZRS(#45)‐30,400apartmentunitsundermanagement. Hunt(#18rankedApartmentOwner)‐Ranked#1in2015.

TheGrouphasalsoprogressedwithpartnershipdiscussionswiththefollowinggroupsforeitherpilotprograms,MSA’sorpotentialMSA’s::

Bonaventure‐7,100apartmentunits. Berger‐7,000apartmentunits. EIMC‐3,000apartmentunits.

The Group is also engaged in intermediate discussions with several groups managing between 1,500 and 42,000apartmentunitseach.LIKELYDEVELOPMENTSTheGroup’s futurebusinessdevelopment effortswill be to focuson a two‐prongedapproachof completing currentopportunitiesandgrowingnewopportunities.The current opportunities to be focused upon in the coming year include the aforementionedmanagement groupscurrently under intermediate discussions in regard toMSA’s. They range between 1,500 and 42,000 in units undermanagementforatotalofmorethan60,000units,whichwillallowtheGrouptospreadintothemarketunderawiderrangeofcustomerprofiles.TheGroupisalsocommittedtogrowingmoreopportunitieswithcontinuedbusinessdevelopmentandoutreacheffortsthroughpresentationandsaleseffortsattradeshowsandconferences,aswellasindividualcustomermeetings.TheGroupisalsoexploringgrowthopportunitiesinthestudenthousingmarket.IntheUS,privatestudenthousingisamulti‐billion dollar annual market that meets well defined needs in the residential rental market for students atuniversitieswithunderfundedor undersupplied on‐campushousing facilities. In the first sixmonths of 2016 alone,student housing property transactions represented US$5.7 billion,(source: New York City‐based research firm RealCapitalAnalytics).Theseprivaterentalpropertiesareincreasinglyrelieduponbytheuniversitysystemsandfocuseduponbyinstitutionalrealestateinvestors.TheGrouphopestoleveragebothfactorsintomarketpenetrationthroughleasetermoptimisation.The Group has begun preliminary discussions with operators in the student housing industry sector and hopes toprogresswithtermsofservicesonmorethan40propertiesand30,000apartmentunitsinthecomingyear.ADVISORYBOARDInadditiontotheCompany’sdirectorsandexecutivestheGrouphasputtogetheraMultifamilyAdvisoryBoardwithrespected leaders in the industry to facilitate interaction and promotion within the industry. The external boardmembersare:

BillyNye,DirectorofOperationsofBergerManagement‐FormerUSAirForceOnePilotforPresident,GeorgeBush.FormerCEOofCavinessandCates,FormerPresidentofBonaventureRealtyGroup.

SteveLefkovitz,CEOofJoshuaTreeConsulting;ExecutiveProduceroftheApartmentInternetMarketing(AIM)Conference, theMultifamily Technology and Entrepreneurship Conference (MTEC)&Maximize:MultifamilyAssetManagementConference.

TheGroupwillendeavourtocreateasimilaradvisoryboardtoassistittopenetratethestudenthousingmarket.

Datedthis4thdayofOctober2016TimManson,CEOSydney,Australia

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DIRECTORS'REPORTTheDirectorspresenttheirreporttogetherwiththefinancialreportoftheGroupforthefinancialyearended30June2016andAuditor'sReportthereon.On15March2016,PropertyConnectHoldingsLimited(formerlyConquestAgriLimited)acquired100%ofthesharesof Property Connect Inc by way of issue of 120 million shares at a price of $0.05 per share and a maximum of80,000,000 shares based on revenue targets for the calendar year ended 31 December 2017. This transactionwasdeemeda “backdoor” transactionandassuchthe financialaccounts for theyearended30 June2016represent thetransactionsofPropertyConnectIncforthefullyearplusthosetransactionsoftheparentcompany,PropertyConnectHoldingsLtd,fortheperiod15Marchto30June2016.ThisfinancialreporthasbeenpreparedinaccordancewithAustralianAccountingStandards.

DirectorsName: PeterFriendTitle: Non‐ExecutiveChairmanQualifications: B.LawExperienceandExpertise: MrFriendwasappointedadirectoron15March2016.Hisprofessionalcareer

has includedexecutiveanddirector rolesat several companies in the financialservices, gamingandwageringandsporting industries spanningmore than35years. In particular, during his 16 year career with State Bank of New SouthWalesLimited,hewasdirectorofmorethan15companiesassociatedwiththeBank.AftercompletingthetradesaleoftheBanktoColonial,hetookonseveralexecutiverolesatlistedpubliccompaniesandwasanofficerofthosecompanies.Peterhasalsoserved inseniorroleswithAustralianRugbyUnionLimitedandFootballFederationofAustraliaandhasbeenanofficerofbothentities.PeterisasolicitoroftheSupremeCourtofNewSouthWalesandtheHighCourtofAustralia, aswell as aFellowof theGovernance InstituteofAustralia andaMemberoftheAustralianInstituteofCompanyDirectors.

OtherCurrentDirectorships: NoneFormerDirectorships(3years): NoneSpecialResponsibilities: ChairmanInterestinSharesandoptions: NilName: TimothyMansonTitle: ChiefExecutiveDirectorQualifications: B.BusAdminExperienceandExpertise: MrMansonwasappointedadirectoron15March2016.Heisthefounderand

CEOofPropertyConnect.PriortothishewasManagingDirectorofTheMansonGroupfor8years,aSydneybasedRealEstateDevelopmentCompany.Hisearlycareer in real estate was based on projects including land and housedevelopments, large commercial refurbishments, and retail construction of amajor equipment hire company and the development of several industrialbusinessparks.In 2004 he co‐founded The Manson Group as a new vehicle to developpropertiesandwasappointedManagingDirector.Theinitialprojectsincludedacommercial property in Melbourne, developing 750 self‐storage units and 45high‐endterracehousesinSydney.As MD he started 2 new divisions in 2006, Sales, Leasing & PropertyManagement to internally run the group’s increasing portfolio of propertiesconsisting of industrial factories, commercial buildings and residentialapartments and houses, and also aDesign and Construction division‐servicingmediumtolargecommercialclients.Throughout2010‐2012theMansonGroupgrewtobecomeanorganizationnowundertakingonamulti‐facetedapproachinadiverserangeofareassurroundingarealestate,successfullyplanning,designingandbuildingnumerousprojectsinconjunctionwithmanagingawiderangingassetportfolio.

OtherCurrentDirectorships: NilFormerDirectorships(3years): NoneSpecialResponsibilities: CEOInterestinSharesandoptions: 63,720,120 ordinary shares, 1 ESOP Option, Maximum earn out shares –

42,480,163

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Name: SamLeeTitle: ExecutiveDirectorQualifications: B.Sc,PhDLaw(Michigan)ExperienceandExpertise: MrLeewasappointedadirectoron15March2016.Hehas7yearsoflegalwork

experience,working as an attorney atGoogle Inc., as a real estate associate atAtkinsonAndelsonLoyaRuud&Romoandwithvarious law firms in complexlitigationpractices.HisexperienceontheWaza,NestLabsandMotorolaHometransactions while at Google heavily influence his corporate operationalphilosophy.Samuel has also worked in various production and operations capacities atYahoo! And Catcha Group, aMalaysia‐based investment firm.He also foundedLSAT Zone, a web‐based test preparation service for US graduate law schooladmissions.

OtherCurrentDirectorships: NilFormerDirectorships(3years): NoneSpecialResponsibilities: NoneInterestinSharesandoptions 1ESOPOptionName: MichaelLangoulantTitle: Non‐ExecutiveDirectorQualifications: CA,B.ComExperienceandExpertise: MrLangoulantwasappointedadirectoron22June2016.Hehasbeeninvolved

withBoardsofpubliccompaniesforover25years.Hehasextensiveexperienceinpubliccompanyadministration,capitalraisings,newlistings,mergersandacquisitions,aswellascrossbordertransactions.

OtherCurrentDirectorships: WhiteCliffMinerals LimitedFormerDirectorships(3years): NyotaMineralsLimitedandLuiriGoldLimitedSpecialResponsibilities: CompanySecretaryInterestinSharesandoptions: 800,000ordinarysharesRodd Boland and Steven Cole were directors of the Company from the beginning of the financial year until theirresignationon15March2016.PeterPapaswasadirectoroftheCompanyfromthebeginningofthefinancialyearuntilhisresignationon22June2016.

PrincipalActivitiesTheGroup isdevelopingproducts foruse in theUSAreal estate technologysector.The resultsof this financial yearreflectthecontinueddevelopmentandrolloutofthePropertyConnectrealestatetechnologyproductsandthecostsofthe“backdoor”transactionthatresultedinthisbusinessbeingownedbytheCompany.

ReviewofOperationsFurtherinformationiscontainedintheChairman'sReviewofOperationsReport.

SignificantChangesintheStateofAffairsTherehavebeennosignificantchangesintheGroup’sstateofaffairsduringthefinancialyearotherthan:

On15March2016, the Company completed the acquisition of Property Connect Inc by issuing 120millionordinarysharesatapriceof$0.05pershareandamaximumof80,000,000sharesbasedonrevenuetargetsforthecalendaryearended31December2017;

Aprospectusequityraisingof$2.5millioninworkingcapitalwascompletedon15March2016bytheissueof50millionsharesatanissuepriceof$0.05pershare;

On 15 March 2016, 10 million shares were issued at an issue price of $0.05 to various promoters of thePropertyConnectInctransaction;and

On22June2016,2millionshareswereissuedinlieuofconsultingfeeswithafairvalueof$28,000.

AfterBalanceDateEventsThere are no matters or circumstances that have arisen since the end of the financial year that have significantlyaffected,ormaysignificantlyaffecttheoperationsoftheGroup,theresultsofthoseoperations,orthestateofaffairsoftheGroupinfuturefinancialyears.

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LikelyDevelopmentsandExpectedResultsofOperationsOtherthantheeventsthataresetoutabove,informationonlikelydevelopmentsintheoperationsoftheGroupandtheexpectedresultsofoperationshavenotbeen included in this financial reportbecausetheDirectorsbelieve itwouldlikelyresultinunreasonableprejudicetotheGroup.

DividendsPaid,RecommendedandDeclaredNodividendswerepaid,declaredorrecommendedsincethestartofthefinancialyear.

ShareOptionsTherearenounissuedsharesorinterestsintheGroupgrantedduringorsincetheendofthefinancialyearexceptfor:

Amaximumof80millionsharesmaybe issued ifGrouprevenuehurdlesaremetduring the2017calendaryear,and

AtthedateofthisreporttheCompanyhasissued2EmployeeShareOptionPlan(ESOP)optionsthat,subjecttovariousvestingconditions,maybeconvertedinto1,800,000sharesperESOPoption.

SharesissuedonexerciseofoptionsTherehavebeennosharesissuedupontheexerciseofoptions.

InsuranceofOfficersDuringthefinancialyear,theCompanyhadinplaceandpaidpremiumsinrespecttoinsurancepoliciesindemnifyingDirectors and officers of the Company against certain liabilities incurred in the conduct of the business or in thedischarge of their duties asDirectors or officers. The contracts of insurance contain confidentiality provisions thatprecludedisclosureoftheamountofthepremiumorthenatureorextentoftheinsurer'sliabilitiesunderthepolicies.NoindemnitieshavebeengivenorinsurancepremiumspaidinrespecttotheauditorsoftheGroup.

ProceedingsonbehalfoftheCompanyTherearenoproceedingsonbehalfoftheCompanyatthedateofthisreport.

DirectorsMeetingsThenumberofmeetingsoftheBoardofDirectorsheldduringthefinancialyearandthenumberofmeetingsattendedbyeachDirectorwas:

Directors

Directors’MeetingsNumberEligibleToAttend NumberAttended

PeterFriend(appointed15March2016) 3 3TimothyManson(appointed15March2016) 3 3SamLee(appointed15March2016) 3 3MichaelLangoulant(appointed22June2016) ‐ ‐PeterPapas(resigned22June2016) 3 3StevenCole(resigned15March2016) ‐ ‐RodBoland(resigned15March2016) ‐ ‐

AllothermattersrequiringformalBoardapprovalweredealtwithbywayofwrittencircularresolutions.Inaddition,theDirectorsmetonaninformalbasisatregularintervalsduringthefinancialperiodtodiscusstheGroup’saffairs.

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Directors'InterestsinSharesorOptionsDirectors'relevantinterestsinsharesofPropertyConnectHoldingsLimitedoroptionsoversharesintheCompanyaredetailedbelow: Balanceat

1July2015Receivedasremuneration

ShareConsolidation Additions

Disposals

Balanceat30June2016

PeterFriend ‐ ‐ ‐ ‐ ‐ ‐TimManson**1 ‐ ‐ ‐ 63,720,120 ‐ 63,720,120SamLee** ‐ ‐ ‐ ‐ ‐ ‐MichaelLangoulant ‐ ‐ ‐ 800,000 ‐ 800,000StevenCole 10,098,386 ‐ (9,552,850) ‐ (325.958) *PeterPapas 88,045,652 ‐ (83,289,281) 668,000 (1,430,000) *RodBoland ‐ ‐ ‐ ‐ ‐ * Balanceat



Disposals

Balanceat30June2015

PeterPapas ‐ ‐ ‐ 88,045,652 ‐ 88,045,652RoddBoland ‐ ‐ ‐ ‐ ‐ ‐StevenCole 9,050,686 ‐ ‐ 1,047,700 ‐ 10,098,386LarryShutes 1,149,500 ‐ ‐ ‐ ‐ *MathewDenton 1,500,000 ‐ ‐ ‐ ‐ **Ceasedtobekeymanagementpersonnelduringtheyear.** Each ofMrManson andMr Lee hold1 ESOP option each that, subject to vesting conditions, are convertible into1,800,000shareseach.1 In accordancewith the terms of the acquisition of Property Connect Inc,MrManson can potentially be granted amaximumfurther42,480,163ordinarysharesifcertainrevenuetargetsaremetinthe2017calendaryear(refernote19).Therehasbeennochangeindirector’sinterestsinsharesofPropertyConnectHoldingsLimitedoroptionsoversharesintheCompanysince30June2016.GoingConcernTheGroupincurredalossof$2,232,615andhadcashoutflowsfromoperatingactivitiesof$1,455,981forthefinancialyearended30June2016. Ithadacashbalanceof$276,124asat30June2016andsubsequenttobalancedate,hascontinuedtogeneratealoss. Notwithstandingthis, in theopinionof theDirectors, therearereasonablegroundstobelieve that theGroupwillbeable to pay their debts as andwhen they fall due, and continue as a going concern for the foreseeable future. TheCompanyhasrecentlyreceivedabindingfundingcommitmentfromanon‐relatedpartytotheextentof$600,000.TheCompanyisfinalisingnegotiationsinrelationtothestructureofacapitalraisingandexpectstomakeanannouncementonthismatterwithinthenextweek.Furthershorttermfundingsolutionsarebeingactivelyinvestigated.TheDirectors have prepared cash projections basedon the current corporate overheads and the proposed productdevelopmentandimplementationprogrammefortheyeartoJuly2017.TheGroupexpectsitwillbeunabletomeetitsproposedminimumproduct implementationworkprogrammeandpursuenewclientopportunitiesoverthenext12monthswithout the Group being successful bringing in revenues streams earlier than budgeted or by completing acapitalraising,assetsale,and/orjointventureagreement(oracombinationoftheseevents).Inthefuturetherecanbenoguaranteethatsufficientrevenuescanbeearnedorsufficientfundscanberaisedthatwillmeet theGroup’s requirements. Failure to earn sufficient revenues or to raise the required fundsmay result in theGroup failing to meet its proposed product development work programme andworking capital requirements. TheDirectorswillcontinuetomitigatetheGroup’sgoingconcernriskbyminimisingtheGroup’scorporateoverheadsandprojectexpenditurewhereappropriate/possible.TheseconditionsindicateacontinuedmaterialuncertaintythatmaycastsignificantdoubtovertheGroup’sabilitytocontinueasagoingconcernandtherefore,whetheritwillrealiseitsassetsandsettleitsliabilitiesandcommitmentsinthenormalcourseofbusinessandattheamountsstatedinthefinancialstatements.HowevertheDirectorsbelievethattheGroupwillbesuccessful intheabovemattersandaccordinglyhavepreparedthefinancialstatementsonagoingconcernbasis.The financial statementsdonot includetheadjustments thatwouldresult if theGroupwasunable tocontinueasagoingconcern.

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Auditor'sIndependenceDeclarationSection 307C of the Corporations Act 2001 requires our auditors, Pitcher Partners, to provide the directors of theCompany with an Independence Declaration in relation to the audit of the annual report. This IndependenceDeclarationissetoutonpage12ofthisreport.

Non‐AuditServicesThe Board of Directors is satisfied that the provision of the non‐audit services during the year. The Directors aresatisfied the services disclosed in Note 14 to the financial statements do not compromise the external auditor'sindependencerequirementsoftheCorporationsAct2001forthefollowingreasons:

allnon‐auditserviceshavebeenreviewedandapprovedtoensurethattheydonot impacttheintegrityandobjectivityoftheauditor;and

noneoftheservicesunderminethegeneralprinciplesrelatingtoauditorindependenceassetoutinAPES110Code of Ethics for Professional Accountants issued by the Accounting Professional and Ethical StandardsBoard, including reviewingorauditing theauditor'sownwork,acting inamanagementordecision‐makingcapacityforthecompany,actingasadvocateforthecompanyorjointlysharingeconomicrisksandrewards.

RemunerationReport(audited)Theremunerationreportissetoutunderthefollowingmainheadings:(A) Principlesusedtodeterminethenatureandamountofremuneration(B) Detailsofremuneration(C) Serviceagreements(D) Share‐basedcompensationTheinformationprovidedunderheadingsA‐DincludesremunerationdisclosuresthatarerequiredunderAccountingStandardAASB124RelatedPartyDisclosures.Thesedisclosureshavebeenaudited.

(A)PrinciplesusedtodeterminethenatureandamountofremunerationThe objective of the Group's executive remuneration framework is to ensure remuneration for performance iscompetitiveandappropriatefortheresultsdelivered.Theframeworkisdesignedtoalignexecutiveremunerationwithachievementofstrategicobjectivesandthecreationofvalueforshareholders.GiventhecurrentfinancialpositionandperformanceoftheGroup,theBoardhasprioritisedthefollowingkeycriteriacontainedintheframework: marketcompetitiveness acceptabilitytoshareholders capitalmanagementTheDirectorshavedeterminedthatanybonusespayabletodirectorsandkeymanagementpersonnelwouldbeonadiscretionarybasis.Nobonuseswerepaidduringthefinancialyear.Atpresentthereisnoelementofdirectorsandkeymanagementpersonnelremunerationthatisperformancebased.Non‐ExecutiveDirectorsFeesFeesandpaymentstoNon‐ExecutiveDirectorsreflectthedemandswhicharemadeon,andtheresponsibilitiesoftheDirectors. Non‐Executive Directors' fees and payments are reviewed annually by the Board to ensure they areappropriate and in line with the market. The Chairman's fees are determined independently to the fees of Non‐ExecutiveDirectorsbasedoncomparativerolesintheexternalmarket.

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RemunerationReport(audited)(continued)

(B)DetailsofRemunerationThe amounts below include some amounts paid to directors by the parent entity prior to the “backdoortransaction”beingamountswhichdonotformpartoftheexpensesshowninthesefinancialstatements.Yearended30June2016

Salary/fees

Post‐employmentbenefits/

Superannuation

Share‐basedpayments

Total

$ $ $ $Director PFriend* 12,083 1,148 ‐ 13,231TManson 159,804 ‐ 5,000 164,804SLee 125,854 ‐ 5,000 130,854MLangoulant* 1,100 105 ‐ 1,205PPapas1 22,793 2,165 ‐ 24,958SCole**1 16,986 1,614 ‐ 18,600RBoland1 16,986 1,614 ‐ 18,600

355,606 6,646

10,000 372,252

Yearended30June2015

DirectorTManson 206,682 ‐

‐ 206,682

SLee ‐ ‐ ‐ ‐PPapas 7,905 751 ‐ 8,656SCole** 20,982 1,993 ‐ 22,975RBoland 7,905 751 ‐ 8,656LShutes1 19,615 1,863 ‐ 21,478MDenton1 13,077 1,242 ‐ 14,319

276,166 6,600

‐ 282,766

1Resignedasdirectorsduringtherelevantyear.*Accruedfeesonly,nopaymentshavebeenmadetothesedirectors.** Company secretary fees paid to Charter Pacific Corporation Ltd, a company related toMr Cole totalled $54,000(2015:$6,952).

(C)ServiceAgreementsOnappointmenttotheBoard,allNon‐ExecutiveDirectorsenterintoaserviceagreementswiththeGroupintheformofa letter of appointment. Formal services contracts have beenmade with the Chief Executive Officer and ExecutiveDirector. TheCompanymay terminate these service contracts bypaying a terminationpayment equal to 6months’salary.

(D)Share‐BasedCompensationTheCompanyhasnotenteredintoanyequity–settledshare–basedpaymenttransactions(includingoptionsandrightsgrantedascompensationtodirectorsorkeymanagementpersonnel)duringthereportingperiodotherthanissuing2ESOPoptionsto2directorspriortothe“backdoor”transaction.ThisreportismadeinaccordancewitharesolutionoftheDirectors.OnbehalfoftheDirectors

PeterFriendNon‐ExecutiveChairman4thdayofOctober2016atSydney.Australia

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An independent New South Wales Partnership. ABN 35 415 759 892

Level 22 MLC Centre, 19 Martin Place, Sydney NSW 2000 Liability limited by a scheme approved under Professional Standards Legislation

Pitcher Partners is an association of independent firms Melbourne | Sydney | Perth | Adelaide | Brisbane| Newcastle

An independent member of Baker Tilly International

AUDITOR’S INDEPENDENCE DECLARATION TO THE DIRECTORS OF PROPERTY CONNECT HOLDINGS LIMITED ABN 27 091 320 464 In relation to the audit for the year ended 30 June 2016, to the best of my knowledge and belief there have been: a) no contraventions of the auditor independence requirements of the Corporations Act 2001; and

b) no contraventions of any applicable code of professional conduct. This declaration is in respect of Property Connect Holdings Limited and the entities it controlled during the financial year. ROD SHANLEY Partner PITCHER PARTNERS Sydney 4 October 2016 F

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CONSOLIDATEDSTATEMENTOFPROFITORLOSSANDOTHERCOMPREHENSIVEINCOMEFORTHEYEARENDED30JUNE2016

Note30 June16

$30June15

$ Revenues 171 ‐ Backdoorlistingexpense 560,010 ‐Depreciationandamortisation 54,445 49,073Employeebenefitsexpenses 706,964 206,682Financeexpenses 51,546 24,329Otherexpenses 25 821,821 329,560Sharebasedpaymentexpense 38,000 ‐

2,232,786

609,644 (Loss)beforeincometaxexpense (2,232,615) (609,644)Incometaxbenefit/(expense) ‐ ‐(Loss)fortheyearfromcontinuingoperations (2,232,615)

(609,644)

Othercomprehensiveloss,netoftaxItems that may be reclassified to profit or loss: Exchangedifferencesontranslationofforeignoperations

(225,075)

(225,759)Totalothercomprehensive(loss) (225,075)

(225,759)

Totalcomprehensive(loss)fortheyear (2,457,690) (835,403)

CentspershareEarnings/(loss)pershare 30 June16 30June15Basicearnings/(loss)pershare 22 (2.6) (6.2)Dilutedearnings/(loss)pershare 22 (2.6) (6.2)TobereadinconjunctionwiththeaccompanyingNotestotheFinancialStatements

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CONSOLIDATEDSTATEMENTOFFINANCIALPOSITIONASAT30JUNE2016

Note30 June16

$30June15

$Currentassets Cash&cashequivalents 4 276,124 83Tradeandotherreceivables 5 69,507 ‐Prepayments 6,439 ‐Totalcurrentassets 352,070 83 Non‐currentassets Intangibles 6 279,198 317,528Other 7 18,845 3,990Totalnon‐currentassets 298,043 321,518 TotalAssets 650,113 321,601 Currentliabilities Tradeandotherpayables 8 295,067 94,942Totalcurrentliabilities 295,067 94,942 Non‐currentliabilities Borrowings 9 ‐ 551,226ConvertiblePromissoryNotes 9 ‐ 704,610Totalnon‐currentliabilities ‐ 1,255,836 Totalliabilities 295,067 1,350,778Netassets/(liabilities) 355,046

(1,029,177)

Equity Issuedcapital 10 4,343,620 511,707Reserves 11 (369,289) (154,214)Accumulatedlosses (3,619,285) (1,386,670)Totalequity 355,046

(1,029,177)

TobereadinconjunctionwiththeaccompanyingNotestotheFinancialStatements

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CONSOLIDATEDSTATEMENTOFCHANGESINEQUITYFORTHEYEARENDED30JUNE2016 Issued

capital ReservesAccumulated

losses Totalequity $ $ $ $ Balance1July2014 511,707 71,545 (777,026) (193,774) Othercomprehensive(loss) ‐ (225,759) ‐ (225,759)(Loss)afterincometax ‐ ‐ (609,644) (609,644)Totalcomprehensive(lossfortheyear ‐ (225,759) (609,644) (835,403) Transactionswithequityholdersintheircapacityasequityholders: Sharesissuednetoftransactioncosts ‐ ‐ ‐ ‐ Balance30June2015 511,707 (154,214) (1,386,670) (1,029,177)

Issued

capital ReservesAccumulated

losses Totalequity $ $ $ $Balance1July2015 511,707 (154,214) (1,386,670) (1,029,177) Othercomprehensive(loss) ‐ (225,075) ‐ (225,075)(Loss)afterincometax ‐ ‐ (2,232,615) (2,232,615)Totalcomprehensive(loss)fortheyear ‐ (225,075) (2,232,615)

(2,457,690)

Transactionswithequityholdersintheircapacityasequityholders:

Sharesissuednetoftransactioncosts

3,238,923 ‐ ‐ 3,238,923

Foreigncurrencytranslationeffect

4,980 ‐ ‐ 4,980

Sharebasedpaymentexpense 28,000 10,000 ‐ 38,000Deemedconsiderationforbackdoorlisting 560,010 ‐ ‐

560,010

Balance30June2016 4,343,620 (369,289) (3,619,285) 355,046TobereadinconjunctionwiththeaccompanyingNotestotheFinancialStatements

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CONSOLIDATEDSTATEMENTOFCASHFLOWSFORTHEYEARENDING30JUNE2016 Note 30 June16

$30June15

$ Cashflowsfromoperatingactivities Receiptsfromcustomers 151 ‐Paymenttosuppliersandemployees (1,404,606) (443,845)Interestreceived 20 ‐Financecostspaid (51,546) (24,329)

Netcash(outflows)fromoperatingactivities (1,455,981)

(468,174) Cashflowsfrominvestingactivities Paymentsforintangibleassets (4,340) (36,432)Increaseinsecuritydeposits (14,855) (3,990)Cashacquiredonacquisition 25,348 ‐Netcashinflows/(outflows)frominvestingactivities 6,153

(40,422)

Cashflowsfromfinancingactivities (Repaymentsof)/proceedsfrom borrowings (551,226) 57,886Fundsfromconvertiblenotes 218,182 488,700Proceedsfromshareissuenetofshareissuecosts 2,053,340 ‐Netcashinflowsfromfinancingactivities 1,720,296

546,586

Netincrease/(decrease)incashandcashequivalents 270,468

37,990

Cashandcashequivalentsatthebeginningofthefinancialyear 83

6,668

Foreignexchangeeffects 5,573 (44,575)Cashandcashequivalentsattheendofthefinancialyear

276,124

83

TobereadinconjunctionwiththeaccompanyingNotestotheFinancialStatements

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NOTESTOTHEFINANCIALSTATEMENTSYEARENDED30JUNE2016

Note1:StatementofSignificantAccountingPoliciesThefollowingisasummaryofsignificantaccountingpoliciesadoptedbytheGroupinthepreparationandpresentationofthefinancialreport.Theaccountingpolicieshavebeenconsistentlyapplied,unlessotherwisestated.

BasisofpreparationofthefinancialreportThe financial report is a general purpose financial report that has been prepared in accordance with AustralianAccountingStandards,InterpretationsandotherauthoritativepronouncementsoftheAustralianAccountingStandardsBoardandtheCorporationsAct2001,asappropriateforfor‐profitorientedentities.Theaccountingpoliciesdetailedbelowhavebeenconsistentlyappliedtoallof theyearspresentedunlessotherwisestated.TheCompanyisalistedpubliccompanyregisteredanddomiciledinAustralia.ThefinancialreportispresentedinAustraliandollars.ThefinancialreportwasauthorisedbytheBoardofdirectorsforissueon4October2016.BusinessCombinations–reversetakeoveracquisitionOn15March2016,PropertyConnectHoldingsLimited(formerlyConquestAgriLimited)acquired100%ofthesharesof Property Connect Inc by way of issue of 120 million shares at a price of $0.05 per share and a maximum of80,000,000sharesbasedonrevenuetargetsforthecalendaryearended31December2017.TheacquisitiondidnotmeetthedefinitionofabusinesscombinationinaccordancewithAASB3BusinessCombinationsasConquestAgriLimitedwasnotdeemedtobeabusinessforaccountingpurposesandtherefore,thetransactionwasnot a business combinationwithin the scope of AASB 3. Instead, the acquisition is accounted for as a share basedpayment transaction under AASB 2 Share‐based Payment whilst applying the principles of AASB 3 including theguidanceprovidedinparagraphsB19toB27inrespectofreverseacquisitions.UnderAASB2Share‐basedPaymentthedifferenceinthefairvalueofthesharesissuedbytheaccountingacquirer(PropertyConnectInc)andthefairvalueofthe accounting acquiree’s (Property Connect Holdings) identifiable net assets represents a listing cost incurred byPropertyConnectIncratherthangoodwill.Accordingly, the consolidated financial report of Property Connect Holdings Limited has been prepared as acontinuation of the business and operations of Property Connect Inc as the deemed accounting acquirer. Theconsolidated financial report therefore comprisesonlyPropertyConnect Inc forall comparativeperiodsand from1July2015upto15March2016;andPropertyConnectIncandPropertyConnectHoldingsfrom15March2016to30June 2016. The former 100% controlled entities of Property Connect Holdings Limited ‐ ETT Access Limited,FarmWorks Merchandise Services Pty Limited and Farmworks Australia Financial Services Pty Limited ‐ werederegisteredordisposedofpriorto15March2016.

CompliancewithIFRSTheconsolidated financial statementsofPropertyConnectHoldingsLimitedcomplywith the InternationalFinancialReportingStandards(IFRSs)asissuedbytheInternationalAccountingStandardsBoard(IASB).

HistoricalcostconventionThis financial report has been prepared under the historical cost convention, as modified where applicable by therevaluationoffinancialassetsandliabilitiesatfairvaluethroughprofitorloss.

CriticalaccountingestimatesThepreparationofthisfinancialreportrequiresmanagementtoexerciseits judgmentintheprocessofapplyingtheGroup's accounting policies. The areas involving a higher degree of judgment or complexity, or areas whereassumptionsandestimatesaresignificanttothefinancialreportaredisclosedinnote2.

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NOTESTOTHEFINANCIALSTATEMENTSYEARENDED30JUNE2016Note1:SignificantAccountingPolicies(continued)

GoingconcernTheGroupincurredalossof$2,232,615andhadcashoutflowsforoperatingactivitiesof$1,455,981forthefinancialyearended30June2016. Ithadacashbalanceof$276,124asat30June2016andsubsequenttobalancedate,hascontinuedtogeneratealoss. Notwithstandingthis, in theopinionof theDirectors, therearereasonablegroundstobelieve that theGroupwillbeable to pay their debts as andwhen they fall due, and continue as a going concern for the foreseeable future. TheCompanyhasrecentlyreceivedabindingfundingcommitmentfromanon‐relatedpartytotheextentof$600,000.TheCompanyisfinalisingnegotiationsinrelationtothestructureofacapitalraisingandexpectstomakeanannouncementonthismatterwithinthenextweek.Furthershorttermfundingsolutionsarebeingactivelyinvestigated.TheDirectors have prepared cash projections basedon the current corporate overheads and the proposed productdevelopmentandimplementationprogrammefortheyeartoJuly2017.TheGroupexpectsitwillbeunabletomeetitsproposedminimumproduct implementationworkprogrammeandpursuenewclientopportunitiesoverthenext12monthswithout the Group being successful bringing in revenues streams earlier than budgeted or by completing acapitalraising,assetsale,and/orjointventureagreement(oracombinationoftheseevents).Inthefuturetherecanbenoguaranteethatsufficientrevenuescanbeearnedorsufficientfundscanberaisedthatwillmeet theGroup’s requirements. Failure to earn sufficient revenues or to raise the required fundsmay result in theGroup failing to meet its proposed product development work programme andworking capital requirements. TheDirectorswillcontinuetomitigatetheGroup’sgoingconcernriskbyminimisingtheGroup’scorporateoverheadsandprojectexpenditurewhereappropriate/possible.TheseconditionsindicateacontinuedmaterialuncertaintythatmaycastsignificantdoubtovertheGroup’sabilitytocontinueasagoingconcernandtherefore,whetheritwillrealiseitsassetsandsettleitsliabilitiesandcommitmentsinthenormalcourseofbusinessandattheamountsstatedinthefinancialstatements.HowevertheDirectorsbelievethattheGroupwillbesuccessful intheabovemattersandaccordinglyhavepreparedthefinancialstatementsonagoingconcernbasis.The financial statementsdonot includetheadjustments thatwouldresult if theGroupwasunable tocontinueasagoingconcern.

SegmentreportingThe Group operates one segment being the USA real estate technology sector. No additional segment reporting isconsiderednecessary.

ForeigncurrencytranslationForeigncurrencytransactionsaretranslatedintoAustraliandollarsusingtheexchangeratesprevailingatthedatesofthetransactions. Foreignexchangegainsand lossesresulting fromthesettlementofsuchtransactionsandfromthetranslation at year‐end exchange rates of monetary assets and liabilities denominated in foreign currencies arerecognisedinthestatementofcomprehensiveincome.

RevenuerecognitionRevenueismeasuredatthefairvalueoftheconsiderationreceivedorreceivable.Service revenue is recognised by reference to the stage of completion of the transaction at balance date. Interestincomeisaccruedonatimebasisbyreferencetotheprincipaloutstandingandattheeffectiverateapplicable.Otherrevenueisrecognisedwhenitisreceivedorwhentherighttoreceivepaymentisestablished.F

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NOTESTOTHEFINANCIALSTATEMENTSYEARENDED30JUNE2016Note1:SignificantAccountingPolicies(continued)

IncometaxTheincometaxexpenseorbenefitfortheperiodisthetaxpayableonthecurrentyear'staxableincomebasedontheapplicableincometaxrateforeachjurisdictionadjustedbychangesindeferredtaxassetsandliabilitiesattributabletotemporarydifferencesandtounusedtaxlosseswhereapplicable.Deferredtaxassetsandliabilitiesarerecognisedfortemporarydifferencesatthetaxratesexpectedtoapplywhentheassets are recovered or liabilities are settled, based on those tax rateswhich are enacted or substantively enacted exceptfor:● Whenthedeferredincometaxassetorliabilityarisesfromtheinitialrecognitionofgoodwilloranassetorliabilityin

atransactionthatisnotabusinesscombinationandthat,atthetimeofthetransaction,affectsneithertheaccountingnortaxableprofits;or

● Whenthetaxabletemporarydifferenceisassociatedwithinterestsinsubsidiaries,associatesorjointventures,andthetimingofthereversalcanbecontrolledanditisprobablethatthetemporarydifferencewillnotreverseintheforeseeablefuture.

Deferredtaxassetsarerecognisedfordeductibletemporarydifferencesandunusedtaxlossesonlyifitisprobablethatfuturetaxableamountswillbeavailabletoutilisethosetemporarydifferencesandlosses.Thecarryingamountofrecognisedandunrecogniseddeferredtaxassetsarereviewedateachreportingdate.Deferredtaxassetsrecognisedarereducedtotheextentthatitisnolongerprobablethatfuturetaxableprofitswillbeavailableforthecarryingamounttoberecovered.Previouslyunrecogniseddeferredtaxassetsarerecognisedtotheextentthatitisprobablethattherearefuturetaxableprofitsavailabletorecovertheasset.Deferredtaxassetsandliabilitiesareoffsetonlywherethereisalegallyenforceablerighttooffsetcurrenttaxassetsagainstcurrenttaxliabilitiesanddeferredtaxassetsagainstdeferredtaxliabilities;andtheyrelatetothesametaxableauthorityoneitherthesametaxableentityordifferenttaxableentitieswhichintendtosettlesimultaneously.TheGroupiscurrentlynotconsolidatedforincometaxpurposes.

CashandcashequivalentsForthestatementofcashflowspresentationpurposes,cashandcashequivalentsincludescashonhand,depositsheldatcallwithfinancialinstitutions,othershort‐term,andhighlyliquidinvestmentswithoriginalmaturitiesofthreemonthsorlessthatarereadilyconvertibletoknownamountsofcashandwhicharesubjecttoaninsignificantriskofchangesinvalue.

GoodsandServicesTax(GST)Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is notrecoverablefromtheAustralianTaxationOffice(ATO).Inthiscaseitisrecognisedaspartofthecostofacquisitionoftheassetoraspartoftheexpense.Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GSTrecoverablefrom,orpayableto,theATOisincludedintradeandotherreceivablesortradeandotherpayablesinthestatementoffinancialposition.Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financingactivitieswhicharerecoverablefrom,orpayabletotheATO,arepresentedasoperatingcashflows.F

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NOTESTOTHEFINANCIALSTATEMENTSYEARENDED30JUNE2016Note1.SignificantAccountingPolicies(continued)

FinancialInstrumentsFinancialInstrumentsarerecognisedwhentheGroupbecomesapartytothecontractualprovisionsoftheinstrument.Financialinstrumentsareinitiallymeasuredatfairvalueplustransactioncostswheretheinstrumentisnotclassifiedatfairvaluethroughtheprofitorloss.LoansandReceivablesLoansandreceivablesarenon‐derivativefinancialassetswithfixedordeterminablepaymentsthatarenotquotedinanactivemarketandaresubsequentlymeasuredatamortisedcostusingtheeffectiveinterestratemethod.FinancialLiabilitiesFinancial liabilities are carried at their principal amounts which represent the present value of future cash flowsassociatedwithservicingthedebt.Interestisaccruedovertheperioditbecomesdueandisrecordedaspartofcurrentpayables.

IntangibleassetsSoftware and website development Developmentcostsarecapitalisedwhenitisprobablethattheprojectwillbeasuccessconsideringitscommercialandtechnicalfeasibility;theGroupisabletouseorselltheasset;theGrouphassufficientresources;andintenttocompletethedevelopmentanditscostscanbemeasuredreliably.Capitaliseddevelopmentcostsareamortisedonastraight‐linebasisovertheperiodoftheirexpectedbenefit,beingtheirfinitelifeof5or7years.Costsassociatedwithsoftwaredevelopment,websitedevelopmentandpatentapplicationsaredeferredandamortisedon a straight line basis over a 5 or 7 year period. The amortisation charge is included within depreciation andamortisationexpenseinthestatementofcomprehensiveincome.Patent applications Significantcostsassociatedwithpatentsandtrademarksaredeferredandwillbeamortisedonastraight‐linebasis,fromthedateofgrantovertheperiodoftheirexpectedbenefit,beingtheirfinitelifeof10years.

ImpairmentofassetsAssetswithanindefiniteusefullifearenotamortisedbutaretestedannuallyforimpairmentinaccordancewithAASB136. Assets subject to annual depreciation or amortisation are reviewed for impairment whenever events orcircumstancesarisethatindicatesthatthecarryingamountoftheassetmaybeimpaired.Animpairmentlossisrecognisedwherethecarryingamountoftheassetisdefinedasthehigherofitsfairvaluelesscoststosellandvalueinuse.

TradeandotherreceivablesAlltradeandotherreceivablesarerecognisedattheamountsreceivableastheyaregenerallydueforsettlementbynomorethan30days.Collectability of trade and other debtors is reviewed on an ongoing basis. Receivables which are known to beuncollectible arewritten off. A provision for impairment of receivables is raisedwhen somedoubt as to collectionexists.

TradeandotherpayablesTheseamountsrepresentliabilitiesforgoodsandservicesprovidedtotheGrouppriortotheendofthefinancialyearandwhichareunpaid.Theamountsareunsecuredandareusuallypaidwithin30daysofrecognition.

FinancecostsFinancecostsarerecognisedasexpenses intheperiod inwhichtheyare incurred,exceptthose thatare incurredaspartofthecostoftheconstructionofaqualifyingasset,whicharecapitalised.Financecostsincludeinterestonshortandlongtermborrowings.

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ProvisionsProvisionsarerecognisedwhentheGrouphasapresentobligation(legalorconstructive)asaresultofapastevent,itisprobabletheGroupwillberequiredtosettletheobligation,andareliableestimatecanbemadeoftheamountoftheobligation. The amount recognised as a provision is the best estimate of the consideration required to settle thepresentobligationatreportingdate,takingintoaccounttherisksanduncertaintiessurroundingtheobligation.

EmployeebenefitsWagesandsalariesandannualleaveLiabilities forwages and salaries, including non‐monetary benefits, and annual leave expected to be settledwhollywithin 12 months of the reporting date are recognised in other payables and provisions in respect of employees'servicesuptothereportingdateandaremeasuredattheamountsexpectedtobepaidwhentheliabilitiesaresettled.LongserviceleaveTheliabilityforlongserviceleaveisrecognisedinprovisionsandismeasuredasthepresentvalueofexpectedfuturepaymentstobemadeinrespectofservicesprovidedbyemployeesuptothereportingdate.Considerationisgiventoexpectedfuturewageandsalarylevels,experienceofemployeedeparturesandperiodsofservice.Share‐basedpaymentsShare‐based compensation benefits are provided to Directors and employees. The fair value of options granted isrecognisedasanexpensewithacorrespondingincreaseintheoptionsreserve.The fair valueat grantdate is independentlydeterminedusingaBlack‐Scholesoptionpricingmodel that takes intoaccount theexerciseprice, the termof theoption, the impactofdilution, thesharepriceatgrantdateandexpectedpricevolatilityoftheunderlyingshare,theexpecteddividendyieldandtheriskfreeinterestrateforthetermoftheoption.

ForeigncurrenciestranslationsandbalancesTransactionsandbalancesTransactionsinforeigncurrenciesofentitieswithintheconsolidatedGrouparetranslatedintofunctionalcurrencyattherateofexchangerulingatthedateofthetransaction.Foreigncurrencymonetaryitemsthatareoutstandingatthereportingdate(otherthanmonetaryitemsarisingunderforeigncurrencycontractswheretheexchangerateforthatmonetaryitemisfixedinthecontract)aretranslatedusingthespotrateattheendofthefinancialyear.Resultingexchangedifferencesarisingonsettlementorre‐statementarerecognisedasrevenuesorexpenses forthefinancialyear.

IssuedcapitalOrdinarysharesareclassifiedasequity.Incrementalcostsdirectlyattributabletotheissueofnewsharesoroptionsareshowninequityasadeduction,netoftax, from the proceeds. Incremental costs directly attributable to the issue of new shares or options, or for theacquisitionofabusiness,areincludedinthecostoftheacquisitionaspartofthepurchaseconsideration.FinancialInstrumentsarerecognisedwhentheGroupbecomesapartytothecontractualprovisionsoftheinstrument.F

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EarningspershareBasicearningspershareBasic earnings per share is calculated by dividing the profit/(loss) attributable to equity holders of the Company,excludinganycostsofservicingequityotherthanordinaryshares,bytheweightedaveragenumberofordinarysharesoutstandingduringthefinancialyear,adjustedforbonuselementsinordinarysharesissuedduringtheyear.

DilutedearningspershareDilutedearningspershareadjuststhefiguresusedinthedeterminationofbasicearningspersharetotakeintoaccounttheafterincometaxeffectofinterestandotherfinancingcostsassociatedwithdilutivepotentialordinarysharesandthe weighted average number of shares assumed to have been issued for no consideration in relation to dilutivepotentialordinaryshares.

NewstandardsandinterpretationsnotyetadoptedAustralian Accounting Standards and Interpretations that have recently been issued or amended but are not yetmandatory,havenotbeenearlyadoptedbytheGroupfortheannualreportingperiodended30June2016.TheGrouphasassessedthatthereisnoimpact,materialorotherwise,ofthenewandrevisedStandardsandInterpretationsonthe Group and, therefore, no change is necessary to Group accounting policies. The new or amended AccountingStandardsandInterpretationsmostrelevanttotheGroup,aresetoutbelow. AASB9FinancialInstrumentsThisstandardisapplicabletoannualreportingperiodsbeginningonorafter1January2018.Thestandardreplacesallprevious versions of AASB 9 and completes the project to replace IAS 39 'Financial Instruments: Recognition andMeasurement'. AASB9 introduces new classification andmeasurementmodels for financial assets. A financial assetshallbemeasuredatamortisedcost,ifitisheldwithinabusinessmodelwhoseobjectiveistoholdassetsinordertocollect contractual cash flows, which arise on specified dates and solely principal and interest. All other financialinstrument assets are to be classified andmeasured at fair value through profit or loss unless the entitymakes anirrevocable election on initial recognition to present gains and losses on equity instruments (that are not held‐for‐trading)inothercomprehensiveincome('OCI').Forfinancialliabilities,thestandardrequirestheportionofthechangein fairvalue that relates to theentity'sowncredit risk tobepresented inOCI (unless itwouldcreateanaccountingmismatch).Newsimplerhedgeaccountingrequirementsareintendedtomorecloselyaligntheaccountingtreatmentwith the riskmanagement activities of the entity. New impairment requirements will use an 'expected credit loss'('ECL')modeltorecogniseanallowance.Impairmentwillbemeasuredundera12‐monthECLmethodunlessthecreditriskonafinancialinstrumenthasincreasedsignificantlysinceinitialrecognitioninwhichcasethelifetimeECLmethodisadopted.Thestandardintroducesadditionalnewdisclosures.TheGroupwilladoptthisstandardfrom1July2018.

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NOTESTOTHEFINANCIALSTATEMENTSYEARENDED30JUNE2016Note1.SignificantAccountingPolicies(continued)AASB15RevenuefromContractswithCustomersThisstandardisapplicabletoannualreportingperiodsbeginningonorafter1January2018.Thestandardprovidesasinglestandardforrevenuerecognition.Thecoreprincipleofthestandardisthatanentitywillrecogniserevenuetodepictthetransferofpromisedgoodsorservicestocustomersinanamountthatreflectstheconsiderationtowhichtheentityexpectstobeentitled inexchangeforthosegoodsorservices.Thestandardwillrequire:contracts(eitherwritten, verbal or implied) tobe identified, togetherwith the separateperformanceobligationswithin the contract;determinethetransactionprice,adjustedforthetimevalueofmoneyexcludingcreditrisk;allocationofthetransactionpricetotheseparateperformanceobligationsonabasisofrelativestand‐alonesellingpriceofeachdistinctgoodorservice, or estimation approach if no distinct observable prices exist; and recognition of revenue when eachperformance obligation is satisfied. Credit risk will be presented separately as an expense rather than adjusted torevenue.Forgoods,theperformanceobligationwouldbesatisfiedwhenthecustomerobtainscontrolofthegoods.Forservices,theperformanceobligationissatisfiedwhentheservicehasbeenprovided,typicallyforpromisestotransferservicestocustomers.Forperformanceobligationssatisfiedovertime,anentitywouldselectanappropriatemeasureofprogresstodeterminehowmuchrevenueshouldberecognisedastheperformanceobligationissatisfied.Contractswithcustomerswillbepresentedinanentity'sstatementoffinancialpositionasacontractliability,acontractasset,orareceivable,dependingontherelationshipbetweentheentity'sperformanceandthecustomer'spayment.Sufficientquantitative and qualitative disclosure is required to enable users to understand the contractswith customers; thesignificant judgmentsmade inapplying theguidanceto thosecontracts;andanyassetsrecognised fromthecosts toobtainorfulfilacontractwithacustomer.TheGroupwilladoptthisstandardfrom1July2018.AASB16LeasesThisstandard isapplicable toannualreportingperiodsbeginningonorafter1 January2019.ThestandardreplacesAASB117 'Leases'and for lesseeswill eliminate theclassificationsofoperating leasesand finance leases.Subject toexceptions,a'right‐of‐use'assetwillbecapitalisedinthestatementoffinancialposition,measuredasthepresentvalueoftheunavoidablefutureleasepaymentstobemadeovertheleaseterm.Theexceptionsrelatetoshort‐termleasesof12months or less and leases of low‐value assets (such as personal computers and small office furniture)where anaccountingpolicychoiceexistswherebyeithera 'right‐of‐use'asset isrecognisedor leasepaymentsareexpensedtoprofitor lossas incurred.A liabilitycorrespondingtothecapitalised leasewillalsoberecognised,adjustedfor leaseprepayments,leaseincentivesreceived,initialdirectcostsincurredandanestimateofanyfuturerestoration,removalordismantlingcosts.Straight‐lineoperatingleaseexpenserecognitionwillbereplacedwithadepreciationchargeforthe leased asset (included in operating costs) and an interest expense on the recognised lease liability (included infinancecosts).Intheearlierperiodsofthelease,theexpensesassociatedwiththeleaseunderAASB16willbehigherwhencomparedtoleaseexpensesunderAASB117.HoweverEBITDA(EarningsBeforeInterest,Tax,DepreciationandAmortisation)resultswillbe improvedas theoperatingexpense isreplacedby interestexpenseanddepreciation inprofitorlossunderAASB16.Forclassificationwithinthestatementofcashflows,theleasepaymentswillbeseparatedintobothaprincipal(financingactivities)andinterest(eitheroperatingorfinancingactivities)component.Forlessoraccounting, the standard does not substantially change how a lessor accounts for leases. The Groupwill adopt thisstandardfrom1July2019.

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Note2:CriticalaccountingestimatesandjudgmentsTheDirectorsevaluateestimatesandjudgmentsincorporatedintothefinancialreportbasedonhistoricalknowledgeandbestavailablecurrentinformation.Estimatesassumeareasonableexpectationoffutureeventsandarebasedoncurrenttrendsandeconomicdata,obtainedbothexternallyandwithintheGroup.

KeyEstimatesImpairmentofassetsTheGroupassessesimpairmentofallassetsateachreportingdatebyevaluatingconditionsspecifictothegroupandtotheparticularassetthatmayleadtoimpairment.Theseincludeproductandmanufacturingperformance,technology,climate, economic and political environments and future product expectations. If an impairment trigger exists therecoverableamountoftheassetisdetermined.ItistheGroup’spolicytoconductbi‐annualinternalreviewsofassetvalues,whichisusedasasourceofinformationtoassessforanyindicatorsofimpairment.

Note3:Incometaxexpense Consolidated 30June16

$30June15

$Incometaxexpenserecognisedinincomestatement

Currentincometax Currentincometaxpayable ‐ ‐ Incometaxexpense/(benefit)reportedinstatementofcomprehensiveincome ‐

‐

Taxlossesavailableforsubsequentfinancialyears ‐ ‐AstheParentcompanyhasnotcarriedonthesamebusinessthroughouttheyearandintothefuturetaxlossescannotbebroughtforwardfordeduction.TheCompanyhasincurredtaxlossesandhasnotaxliabilityforthefinancialyear(2015:Nil).DeferredtaxassetshavenotbeenrecognisedintheStatementofFinancialPositionastherecoveryofthesebenefitsisuncertain.

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Note4:Cashandcashequivalents Consolidated 30 June16

$30June15

$ CashatBank 276,124 83

Note5:Receivables Current Sundrydebtors 69,507 ‐

Note6:Intangibles Softwaredevelopment,atcost 336,775 323,995Amortisation (103,214) (53,012) 233,561 270,983 Websitedevelopment,atcost 31,499 34,465Amortisation (23,103) (15,542) 8,396 18,923 Patentapplications,atcost 37,241 27,622

279,198

317,528

Note7:Deposits Rentalsecuritybonds 18,845 3,990 18,845 3,990

Note8:TradeandOtherPayables CurrentTradepayables 210,587

85,868

Accruals 84,480 9,074

295,067

94,942

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Note9:Borrowings Consolidated 30 June16

$30June15

$ Non‐current,unsecuredLoansfromrelatedparties ‐

551,226

Convertiblepromissorynotes ‐ 704,610

‐

1,255,836Theloansfromrelatedpartieswerefullyrepaidduringtheyear.TheconvertiblepromissorynoteswereconvertedintoordinarysharesaspartoftheacquisitionofPropertyConnectInc.

Note10:IssuedCapital

2016 2015 No.ofShares $ No.ofShares $ Openingbalanceat1July2015 9,919,250 511,707 9,919,250 511,707Foreignexchangeeffect ‐ 4,980 ‐ ‐ReverseAcquisition1 SeriesAnoteholdersconversion 11,581,890 ‐ ‐ ‐SeriesBnoteholdersconversion 642,312 ‐ ‐ ‐Shares 97,856,548 ‐ ‐ ‐Backdoorlisting(CQAshareholders)1

740,444,579 560,010 ‐ ‐

Shareconsolidation1 (700,443,852) ‐ ‐ ‐Conversionofconvertiblenotes1 25,692,474 642,312 ‐ ‐Capitalraising2 50,000,000 2,500,000 ‐ ‐Promotersharesissued3 10,000,000 500,000 ‐ ‐Sharesissuedinlieuoffees4 2,000,000 28,000 ‐ ‐ Shareissuecosts ‐ (403,389) ‐ ‐Closingbalanceasat30June2016 247,693,201 4,343,620

9,919,250 511,707

1Sharesissued,convertibleloansconvertedintosharesandothermovementsinsharecapitalrelatingtothereversetakeoverofPropertyConnectHoldingsIncinMarch2016.2Ordinarysharesissuedat$0.05pershareinaccordancewithaprospectuslodgedwithASICinDecember2015.3Ordinarysharesissuedat$0.05persharetovariouspromotersofthereversetakeoverprocess4Ordinarysharesissuedatadeemedvalueof$0.014persharetoextinguishaconsultingfeeliability.OrdinarysharesOrdinary shares entitle the holder to participate in dividends and the proceeds on winding up the Company inproportiontothenumberofsharesheld.Thefullypaidordinaryshareshavenoparvalue.F

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Note11:Reserves Consolidated 30 June16

$30June15

$ Movementsinreservesfortheyearwere Foreigncurrencytranslationreserve Openingbalance (154,214) 71,545Currencytranslationdifferences (225,075) (225,759Closingbalance (379,289) (154,214) Share‐basedpaymentsreserve Openingbalance ‐ ‐Sharebasedpaymentexpensefortheyear 38,000 ‐Transferredtoissuedcapital (28,000) ‐Closingbalance 10,000 ‐

(369,289)

(154,214)

Natureandpurposeofreserves(i) ForeigncurrencytranslationreserveExchangedifferencesarisingontranslationofforeigncontrolledentitiesaretakentotheforeigncurrencytranslationreserve.Thereserveisrecognisedinprofitorlosswhenthenetinvestmentisdisposedof.(ii) Share‐basedpaymentsreserveTheshare‐basedpaymentsreserveisusedtorecognisethefairvalueofsharebasedpayments,bethatsharesand/oroptionsmadetodirectorsand/orconsultants.Reserveitemsaretransferredtoissuedequityupontheissueofordinarysharesinrelationtothesharebasedpayment.

Note12:FinancialRiskManagementTheCompanyandtheGrouphaveexposuretothefollowingrisksfromtheiruseoffinancialinstruments creditrisk liquidityrisk currencyrisk fairvaluesThisnotepresentsinformationabouttheCompanyandGroup’sexposuretoeachoftheaboverisks,theirobjectives,policies and processes for measuring and managing the risk, and the management of capital. Further quantitativedisclosuresareincludedthroughoutthisfinancialreport.The Board of Directors has overall responsibility for the establishment and oversight of the risk managementframework.RiskmanagementpoliciesareestablishedtoidentifyandanalysetherisksfacedbytheCompanyandtheGroup,tosetappropriaterisklimitsandcontrols,andtomonitorrisksandadherencetolimits.

CapitalmanagementTherewerenochangesintheGroup’sapproachtocapitalmanagementduringtheyear.NeithertheCompanynoranyofitssubsidiariesaresubjecttoexternallyimposedcapitalrequirements.

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Note12:FinancialRiskManagement(continued)

CreditriskCreditriskistheriskoffinanciallosstotheGroupifacustomerorcounterpartytoafinancialinstrumentfailstomeetitscontractualobligations,andarisesprincipallyfromtheGroup’sloans. FortheCompanyitarisesfromreceivablesduefromsubsidiaries.Financialassets‐loansandreceivablesTheCompanyundertakesareviewofallloansandreceivablesperiodicallyandassessestherecoverabilityoftheassetagainstanalysisoftheestimatedfutureestimatedcashflowsfromfutureoperations.Wheretheestimatedfuturecashflowsdonotsupportrecoverabilityoftheloanbalance,anallowanceforimpairmentisrecognisedinthestatementofcomprehensiveincome.Animpairmentlossisreversed,ifthereversalcanberelatedobjectivelytoaneventthatoccurredaftertheimpairmentlosswasrecognised.Forfinancialassetsthataredebtsecuritiesthereversalisrecognisedintheincomestatement.Sensitivitytocreditriskisnotmaterialgiventhecurrentlevelofreceivables.

LiquidityRiskLiquidityriskistheriskthattheCompanyorGroupwillnotbeabletomeetitsfinancialobligationsastheyfalldue.TheGroup’sapproachtomanagingliquidityistoensure,asfaraspossible,thatitwillalwayshavesufficientliquiditytomeetitsliabilitieswhendue,underbothnormalandstressedconditions.Thecashfacilitiesarecontinuallymonitoredmatchingforecastcashflowswiththematurityprofileoffinancialassetsandliabilities.

CurrencyriskThe Group, undertakes transactions in foreign currencies. The Group manages foreign exchange exposure byconstantlymonitoringandanalysingexchangeratesandcurrencyutilisedwithinitsoperations.At30June2016,theGrouphad$215,151payablesinUSDcurrency(2015:USD$1,255,836)relatingtotransactionsforwhichtheGrouphadfirmcommitments.

If the Australian dollar weakened/strengthened by 10% against the USD with all other variables held constant, the Group’s post tax loss for the year would have been $21,000 lower/higher (2015: $125,000).

PriceriskTheGroupisnotsubjecttoanypricerisk.

InterestrateriskThe Groupmanages interest rate risk by constantlymonitoring and analysing its interest rate sensitive assets andliabilities.Sensitivity to interest rates movements are currently not material to the Group given the current low interest environment and the Company’s low cash levels. FairvalueoffinancialinstrumentsThecarryingamountsoffinancialinstrumentsreflecttheirfairvalue.

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Note13:KeyManagementPersonnel

DirectorsThefollowingpersonswereDirectorsofPropertyConnectHoldingsLimitedduringthefinancialyear:NameofDirector Commenced Status PeterFriend 15March2016 CurrentTimothyManson 15March2016 CurrentSamLee 15March2016 CurrentMichaelLangoulant 22June2016 CurrentRodBoland 6June2014 Resigned15March2016StevenCole 3March2015 Resigned15March2016PeterPapas 3March2015 Resigned22June2016OtherkeymanagementpersonnelTherewerenochangestoothermanagementpersonnel.CompensationTheremunerationoftheDirectorsoftheGroupissetoutbelow.Thefiguresbelowincludesomeremunerationpaidtodirectorsof theparententityprior to the “backdoor” transactionandas sucharenot includedasexpenses in thesefinancialstatements: Consolidated 30 June16

$30June15

$ Shortterm 355,606 69,484Post‐employment 6,646 6,600Sharebasedpayments 10,000 ‐ 372,252 76,084

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Note13:keyManagementpersonnel(continued)

ShareholdingThenumberofshares intheparententityheldduringthe financialyearbyeachdirectorandothermembersofkeymanagementpersonneloftheGroup,includingtheirpersonallyrelatedparties,issetoutbelow: Balanceat



Disposals

Balanceat30June2016

PeterFriend ‐ ‐ ‐ ‐ ‐ ‐TimManson**1 ‐ ‐ ‐ 63,720,120 ‐ 63,720,120SamLee** ‐ ‐ ‐ ‐ ‐ ‐MichaelLangoulant ‐ ‐ ‐ 800,000 ‐ 800,000StevenCole 10,098,386 ‐ (9,552,850) ‐ (325.958) *PeterPapas 88,045,652 ‐ (83,289,281) 668,000 (1,430,000) *RodBoland ‐ ‐ ‐ ‐ ‐ * Balanceat



Disposals

Balanceat30June2015

PeterPapas ‐ ‐ ‐ 88,045,652 ‐ 88,045,652RoddBoland ‐ ‐ ‐ ‐ ‐ ‐StevenCole 9,050,686 ‐ ‐ 1,047,700 ‐ 10,098,386LarryShutes 1,149,500 ‐ ‐ ‐ ‐ *MathewDenton 1,500,000 ‐ ‐ ‐ ‐ **Ceasedtobekeymanagementpersonnelduringtheyear.**EachofMrMansonandMrLeehold1ESOPoptioneachthat,subjecttovestingconditions,areconvertibleinto1,800,000shareseach.TheESOPoptionswereissuedduringtheyear.

OthertransactionsDuringtheyear,theGrouprepaidaloanfromadirectorthatexistedpriortothebackdoortransaction.MrMansonwasrepaid$520,257inshorttermloansafterthecompletionofthebackdoortransaction.Prior to thebackdoortransactiontheCompany issued2EmployeeShareOptionPlanoptionstodirectorsTMansonandSLee.Eachoptionis,subjecttocontinuityofemploymentvestingconditions,convertibleinto1,800,000ordinaryshares.Eachoptionhasbeendeterminedtohaveadeemedvalueof$40,000peroptionwhichwillbeexpensedonapro‐ratabasisoverthe2yearvestingperiod.

Note14:RemunerationofAuditorsThefollowingoutlinesthefeespaidorpayableforservicesprovidedbyPitcherPartners.

Consolidated 30 June16

$30June15

$Auditservices Auditandreviewoffinancialstatements 30,000 10,000Otherservices Complianceandotherservices 2,500 15,000Totalauditor’sremuneration 32,500

25,000

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Note15:ParentEntityDisclosuresTheparententityisPropertyConnectHoldingsLimited. 30 June16

$30June15

$FinancialPosition Assets Currentassets 33,449 29,352Non‐currentassets ‐ ‐Totalassets 33,449 29,352 Liabilities Currentliabilities 61,630 73,589Non‐currentliabilities ‐ ‐Totalliabilities 61,630 73,589NetAssets (28,181) (44,237) Equity Issuedcapital 18,905,731 9,166,777Reserves 70,182 357,824Accumulatedlosses (19,004,094) (9,568,838) (28,181) (44,237) Financialperformance Lossforyear (9,435,256) (489,158)Othercomprehensiveincome ‐ ‐ (9,435,256) (489,158)TheDirectorsareoftheopinionthatnoprovisionsarerequiredinrespectofanycontingentliabilities.

Note16:RelatedPartyTransactions

KeyManagementPersonnelDisclosuresrelatingtokeymanagementpersonnelaresetoutinnote13andtheDirectors'Report.

DirectorRelatedEntitiesA former director/company secretary, Steven Cole, is a Company Secretary of Charter Pacific Corporation Limited.CharterPacificCorporationhasprovided services for companysecretarialandaccounting services totalling$54,000(2015:$6,952).

TermsandConditionsAlltransactionsweremadeonnormalcommercialtermsandconditionsandatmarketrates.

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Note17:SubsidiariesThe consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries inaccordancewiththeaccountingpoliciesdescribedinnote1:

Equityholding

Nameofentity

Countryofincorporation

30June16%

30June15%

PropertyConnectIncETTAccessLimited*FarmWorksMerchandiseServicesPtyLtd*FarmWorksAustraliaFinancialServicesPtyLtd*

USANewZealandAustraliaAustralia

100‐‐‐

‐100100100

*Thesecompanieswerederegisteredduringtheyear.

Note18:ReconciliationofCashFlowfromOperationswithLossafterIncomeTax 30 June16

$30June15

$a)Reconciliationoflossfromordinaryactivitiesafterincometaxtonetcashoutflowfromoperatingactivities

Netlossfortheyearafterincometax (2,232,615) (609,644) Depreciation/amortisation 54,445 49,073Backdoorlistingexpense 560,010 ‐Sharebasedpaymentexpense 38,000 ‐(Increase)/decreaseintradeandotherreceivables (75,946) ‐Increase/(decrease)intradeandotherpayables 200,125 92,397 Netcashoutflowfromoperatingactivities (1,455,981) (468,174)

Note19:CommitmentsAspartoftheacquisitiontoacquirePropertyConnectHoldingsInc,theparententityhasacommitmenttoissueuptoamaximumof80millionshares(Earn‐OutShares)basedupontheGroup’srevenues fortheyearended31December2017.TheEarn‐OutShareswillbeissuedonapro‐ratabasisoncerevenuesexceed$6million.Thefull80millionEarn‐OutShareswillbeissuedifrevenuesforthe2017calendaryearreach$10million.

Note20:ContingentassetsandliabilitiesTheCompanyandGrouphavenocontingentassetsorliabilitiesatthedateofthisreport.

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Note21:Eventsoccurringafterbalancedate

Therearenomattersorcircumstanceshavearisensincetheendofthefinancialyearthathavesignificantlyaffected,ormaysignificantlyaffecttheoperationsoftheGroup,theresultsofthoseoperations,orthestateofaffairsoftheGroupinfuturefinancialyears.

Note22:Earnings/(loss)pershare Consolidated 30 June16

$30June15

$ Net(loss)attributabletoordinaryshareholders (2,232,615) (609,644) No.ofshares No.ofshares Weightedaveragenumberofordinaryshares 86,278,755 9,919,250 (cents/share) (cents/share)Basicanddilutedearnings/(loss)pershare (2.6)

(6.2)

Note23:SharebasedpaymentsSharebasedpaymentsconsistsofsharesand/oroptionsissuedtodirectorsandconsultants.Theexpenseisrecognisedin the Statement of Comprehensive Income and Statement of Changes in Equity over the vesting periods of thesecuritiesissued.During theyear theCompany issued2,000,000ordinary shares inpaymentof external consulting fees.Thedeemedvalue of these shareswas$0.014per share. TheCompany also issued2ESOPoptions to twodirectors prior to thebackdoortransaction.TheESOPoptionsmaybeconvertedinto1,800,000sharesperESOPoptionatanexercisepriceof5centspersharesubjecttoatwoyearcontinuedemploymentvestingcondition.Theoptionsareoutstandingatyearendandnomodificationsweremadetothearrangementsduringtheyear.Inaddition,thebackdoorlistingexpenseof$560,010isasharebasedpaymentasdescribedinNote1,calculatingthefairvalueofthesharesissuedbytheaccountingacquirer(PropertyConnectInc). Thefairvalueofthesharesintheaccountingacquirer(PropertyConnectInc)isdeemedbasedonthenumberofsharesheldintheaccountingacquiree(Property Connect Holdings) prior to the backdoor transaction at estimated fair value. As no ASX share pricewasavailablepriortothetransactionandtherewassignificantsharepricevolatilityforaperiodafterthetransaction,thefairvalueisbasedonaverageASXsharepriceoverthesubsequentnon‐volatileperiod.

Note24:PriorPeriodErrorTheforeignexchangeratepreviouslyusedtoconvertissuedcapitalat30June2015wasincorrect.Asaresult,issuedcapital at30 June2015hasbeen restated from$606,486 to$511,707anda correspondingadjustmentmade to theforeigncurrencytranslationreserve.Therestatementofthepriorperiodhasnoeffectonthenetassets,totalequityorcomprehensiveincomepreviouslyreported.

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Note25:ExpensesLossfromordinaryactivitiesbeforeincometaxexpenseincludesthefollowingspecificexpenses:. Consolidated 30 June16

$30June15

$ Auditandaccountingfees 92,086 23,893Consultantsfees 73,438 68,918IT/computerexpenses 83,571 12,096Legal 181,510 62,752Marketing 106,626 38,390Rentalandoccupancyexpenses 83,399 25,339Stockmarketexpenses 46,999 ‐Travel 128,317 57,965

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DIRECTORS'DECLARATIONYEARENDED30JUNE2016TheDirectorsofPropertyConnectHoldingsLimiteddeclarethat:(a) in the Director's opinion the financial statements and notes on page 13 to 34, and the remuneration report

disclosuresthatarecontainedintheRemunerationReportintheDirector'sReport,setoutonpage10to11,areinaccordancewiththeCorporationsAct2001,including:(i) givingatrueandfairviewoftheGroup'sfinancialpositionasat30June2016andofitsperformance,forthe

yearendedonthatdate;and

(ii) comply with Australian Accounting Standards (including the Australian Accounting Interpretations) andCorporationsRegulations2001.

(b) thefinancialreportalsocomplieswithInternationalFinancialReportingStandardsasdisclosedinnote1;and

(c) theremunerationdisclosuresthatarecontainedintheRemunerationReportintheDirector'sreportcomplywith

Australian Accounting Standard AASB 124 'Related Party Disclosures', the Corporations Act 2001 and theCorporationsRegulations2001;and

(d) therearereasonablegroundstobelievethattheCompanywillbeabletopayitsdebtsasandwhentheybecomedueandpayable.

TheDirectorshavebeengiventhedeclarationsrequiredbySection295AoftheCorporationsAct2001.SignedinaccordancewitharesolutionoftheDirectors.

PeterFriendChairmanDatedthis4thdayofOctober2016.

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An independent New South Wales Partnership. ABN 35 415 759 892

Level 22 MLC Centre, 19 Martin Place, Sydney NSW 2000 Liability limited by a scheme approved under Professional Standards Legislation

Pitcher Partners is an association of independent firms Melbourne | Sydney | Perth | Adelaide | Brisbane| Newcastle

An independent member of Baker Tilly International

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF PROPERTY CONNECT HOLDINGS LIMITED ABN 27 091 320 464

Report on the Financial Report We have audited the accompanying financial report of Property Connect Holdings Limited and its Controlled Entities (the consolidated entity), which comprises the consolidated statement of financial position as at 30 June 2016, the consolidated statement of profit or loss and other 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. Directors’ Responsibility for the Financial Report The directors of Property Connect Limited 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 is free from material misstatement, whether due to fraud or error. In Note 1, the directors also state that, in accordance with AASB 101 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 controls relevant to the entity’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 entity’s internal controls.

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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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF PROPERTY CONNECT HOLDINGS LIMITED ABN 27 091 320 464 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 Property Connect Holdings Limited and its Controlled Entities is in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of 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.

Emphasis of Matter Without qualifying our opinion, we draw attention to the financial report which indicates that the consolidated entity incurred a loss of $2,232,615 and had cash outflows for operating activities of $1,455,981 for the year ended 30 June 2016 and had a cash balance of $276,124 as at 30 June 2016. As stated in Note 1, the consolidated entity is therefore dependent on raising additional capital to fund the proposed product development and implementation programme and current corporate overheads. These conditions indicate the existence of a material uncertainty which may cast significant doubt about the consolidated entity's ability to continue as a going concern and therefore, the consolidated entity may be unable to realise its assets and discharge its liabilities in the normal course of business.

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF PROPERTY CONNECT HOLDINGS LIMITED ABN 27 091 320 464 Report on the Remuneration Report We have audited the Remuneration Report included in pages 10 to 11 of the directors’ report for the year ended 30 June 2016. The directors of Property Connect Holdings Limited 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 Property Connect Holdings Limited for the year ended 30 June 2016 complies with section 300A of the Corporations Act 2001. ROD SHANLEY PITCHER PARTNERS Partner Sydney 4 October 2016

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ADDITIONALASXINFORMATIONThefollowingadditional information isrequiredbytheAustralianSecuritiesExchangeLimitedListingRulesandnotdisclosedanywhereelseinthisFinancialReport.

ShareholdingAllshareholdingdetailsareinaccordancewiththeCompany'sshareholderregisterasat27September2016.(a)DistributionofequitysecuritiesAnalysisofnumbersofequitysecurityholdersbysizeofholding:

Category(SizeofHolding)

NumberofShareholders

Percentage

NumberofShares

1–1,000 1,017 0.04 100,8701,001–5,000 120 0.11 271,9615,001–10,000 26 0.08 194,292

10,001–100,000 112 2.40 5,945,698100,001–over 220 97.37 241,180,380

1,495

100 247,693,201

Holdersoflessthanamarketableparceltotal1,202(b)EquitysecurityholdersThenamesofthetwentylargestholdersofquotedequitysecuritiesarelistedbelow:NameofShareholder

OrdinarySharesHeldNumber Percentage

TIMOTHYMANSON 63,720,170 25.73WLFINANCEPTYLTD 18,354,934 7.41MARLONINVESTMENTSPTYLTD<MARLONINVESTMENTSA/C> 12,290,387 4.96GTTVENTURESPTYLTD 5,188,000 2.09SISUAUSTRALIAPTYLTD<GAHAFAMILYA/C> 4,532,082 1.83MRJOHNFREDERICKFORREST<FORRESTA/C> 4,282,082 1.73HEIDIKAARINABOVA 4,130,902 1.67ADGEMISHOLDINGSPTYLTD 4,130,637 1.67THEEVENTSDEPTPTYLIMITED<TAYLORUNITA/C> 4,044,257 1.63MAXIMUMMEDIAPOTENTIALPTYLIMITED 3,932,642 1.59MRWILLIAMGILBERTLOPEZ 3,016,684 1.22MRSSOPHIEGRACEHILLEN 2,750,000 1.11DAVHALINVESTMENTSPTYLIMITED 2,668,000 1.08PRWINVESTMENTSPTYLTD 2,227,520 0.90INNERGLOWHOLDINGSPTYLTD<INNERGLOWHOLDINGSA/C> 2,214,261 0.89ANTHONYDELEEDE 2,141,041 0.86ZINLINEPTYLTD<BOWDITCHSUPERFUNFA/C> 2,141,041 0.86PAYNEHAMINVESTMENTSPTYLTD<PAYNEHAMINVESTMENTA/C> 2,093,139 0.85APPLABSTECHNOLOGIESLIMITEDKCIRTAPSECURITIESPTYLTD<THEN&PGLOVACFAMILYA/C>

2,000,0001,916,667

0.810.77

147,774,446 59.66

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ADDITIONALASXINFORMATION(continued)

(c)SubstantialholdersThenamesofthesubstantialshareholderslistedintheCompany’sregisterare:

NameofShareholder

OrdinarySharesHeld

%holding

TIMOTHYMANSON 63,720,170 25.73WLFINANCEPTYLTD 18,354,934 7.41

VotingrightsAllsharesareordinarysharesandcarrythesamevotingrights.Onashowofhandseverymemberpresentinpersonorbyproxyshallhaveonevoteanduponapolleachshareshallhaveonevote.OptionsholdershavenovotingrightsTherearenootherclassesofequitysecurities.

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Documents

PROPERTY CONNECT HOLDINGS LIMITED ABN 27 091 320 464 … · groups sit within the US National Multifamily Housing Council’s (“NMHC)” 2016 Top 50 Rankings. In addition to the