QRxPharma : Appendix 4C - Quarter Ended 30 June 2016

Appendix 4C Quarterly report for entities admitted on the basis of commitments

Introduced 31/3/2000. Amended 30/9/2001, 24/10/2005.

Rule 4.7B

Name of entity

QRxPharma Limited

ABN	Quarter ended ("current quarter")
16 102 254 151	30 June 2016

Consolidated statement of cash flows

Cash flows related to operating activities		Current quarter $A'000	Year to date (12 months) $A'000
1.1	Receipts from customers	-	-
1.2	Payments for (a) staff costs advertising and marketing research and development leased assets other working capital	(66) - - - (185)	(266) - (103) - (2,064)
1.3	Dividends received	-	-
1.4	Interest and other items of a similar nature received	5	14
1.5	Interest and other costs of finance paid	-	-
1.6	Income taxes refund / (paid)	-	-
1.7	Other - Escrow account (deposit) / receipts(i) Other - Cost recoveries Other - Research and development cash incentive received	- - -	316 - -
Net operating cash flows		(246)	(2,103)

(i) On 4 July 2014 the Company entered into an Escrow Deed arrangement with its then current employees, consultants and the former CEO, covering potential liabilities arising from i) Notice entitlements, ii) Termination payments and where applicable, iii) Retention payments, for an aggregate amount of A$3.6 million. The Company deposited these funds into a bank account under the administration of an escrow agent in accordance with the terms of the Escrow Deed. A significant portion of these liabilities had been meet through to 31 December 2015. Pursuant to the terms of the Escrow Deed the balance of funds held by the escrow agent of A$0.2 million were returned to the Company in early January 2016.

Current quarter $A'000	Year to date (12 months) $A'000
1.8	Net operating cash flows (carried forward)	(246)	(2,103)
Cash flows related to investing activities		- - - - -	- - - - -
1.9	Payment for acquisition of: businesses (item 5) equity investments intellectual property physical non-current assets other non-current assets
1.10	Proceeds from disposal of: businesses (item 5) equity investments intellectual property physical non-current assets other non-current assets	- - - - -	- - - - -
1.11	Loans to other entities	-	-
1.12	Loans repaid by other entities	-	-
1.13	Other (Bank Accepted Commercial bills and Term Deposit with maturity greater than 3 months)	-	-
Net investing cash flows		-	-
1.14	Total operating and investing cash flows	(246)	(2,103)
Cash flows related to financing activities		-	-
1.15	Proceeds from issues of shares, options, etc.
1.16	Proceeds from sale of forfeited shares	-	-
1.17	Proceeds from borrowings	-	-
1.18	Repayment of borrowings	-	-
1.19	Dividends paid	-	-
1.20	Other	-	-
Net financing cash flows		-	-
Net increase (decrease) in cash held		(246)	(2,103)
1.21	Cash at beginning of quarter/year to date	1,435	3,073
1.22	Exchange rate adjustments to item 1.20	5	224
1.23	Cash at end of quarter	1,194	1,194

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

Current quarter $A'000
1.24	Aggregate amount of payments to the parties included in item 1.2	48
1.25	Aggregate amount of loans to the parties included in item 1.11	-

1.26 Explanation necessary for an understanding of the transactions

Payments represent directors' fees.

Non-cash financing and investing activities

2.1	Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows
Nil

2.2	Details of outlays made by other entities to establish or increase their share in businesses in which the reporting entity has an interest
Nil

Financing facilities available

Add notes as necessary for an understanding of the position. (See AASB 1026 paragraph 12.2).

Amount available $A'000	Amount used $A'000
3.1	Loan facilities	-	-
3.2	Credit standby arrangements	-	-

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.		Current quarter $A'000	Previous quarter $A'000
4.1	Cash on hand and at bank	1,194	1,435
4.2	Deposits at call	-	-
4.3	Bank overdraft	-	-
4.4	Bank Accepted Commercial Bills and Term Deposits with maturity of less than 3 months	-	-
Total: cash at end of quarter (item 1.23)		1,194	1,435

Acquisitions and disposals of business entities

Acquisitions (Item 1.9(a))	Disposals (Item 1.10(a))
Nil	Nil

1. Name of entity

2. Place of incorporation or registration

3. Consideration for acquisition or disposal

4. Total net assets

5. Nature of business