2021 132,012,209. ☐☐ ☒ 2020☐ ☐
Ordinary Shares* * 2020,2021, was 94,598,369.Note – Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 from their obligations under those Sections. (§☒filingfiling: Other ☐
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Item 1. | Identity of Directors, Senior Management and Advisors |
Item 2. | Offer Statistics and Expected Timetable |
Item 3. | Key Information |
Summary of consolidated profit or loss and other comprehensive income (IFRS) Revenue and other income Loss before income tax expense from continuing operations Profit after income tax expense from discontinued operations Loss after income tax expense for the year Net (loss) attributable to members of Kazia Therapeutics Limited Earnings (loss) per share from continuing operations attributable to the owners of Kazia Therapeutics Limited Basic (loss) per share (cents per share) Diluted (loss) per share (cents per share) Weighted average number of ordinary share shares used to calculate earnings per share Number of outstanding ordinary shares at year end Cash and cash equivalents Total assets Net assets/Equity Debt Capital StockThe selected financial data have been derived from the consolidated financial statements of the Company as of June 30, 2020 and 2019 and for the fiscal years ended June 30, 2020, 2019 and 2018 included in this Annual Report. The selected financial data as of June 30, 2018, 2017 and 2016 and for the years ended June 30, 2017 and 2016 have been derived from the consolidated financial statements of the Company that are not included in this Annual Report. This data should be read in conjunction with, and are qualified in their entirety by, reference to those statements and the notes thereto.This financial report complies with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). The consolidated financial statements have been audited in accordance with the Public Company Accounting Oversight Board (“PCAOB”) auditing standards in the United States by the Company’s independent registered public accounting firm. The Company’s fiscal year ends on June 30. As used throughout this Annual Report, the word “fiscal” followed by a year refers to the 12-month period ended on June 30 of that year. For example, the term “fiscal 2020” refers to the 12 months ended June 30, 2020. Except as otherwise indicated, all dollar amounts referred to in this Annual Report are at the consolidated level and exclude inter-company amounts. 2016
A$’000 2017
A$’000 2018
A$’000 2019
A$’000 2020
A$’000 4,071 8,812 13,108 1,565 1,061 (12,155 ) (10,869 ) (6,344 ) (10,568 ) (12,765 ) — — — — — (12,155 ) (10,670 ) (6,039 ) (10,270 ) (12,467 ) (12,062 ) (10,670 ) (6,039 ) (10,270 ) (12,467 ) (2.82 ) (2.28 ) (12.48 ) (17.86 ) (17.07 ) (2.82 ) (2.28 ) (12.48 ) (17.86 ) (17.07 ) 427,431,910 467,833,849 48,376,525 57,503,555 73,053,514 429,733,982 483,287,914 48,409,621 62,166,673 94,598,369 Summary of consolidated financial position (IFRS) 2016
A$’000 2017
A$’000 2018
A$’000 2019
A$’000 2020
A$’000 33,453 14,455 5,956 5,434 8,764 35,517 35,910 28,175 21,177 23,063 33,931 25,338 19,242 14,195 14,125 — — — — — 191,301 193,769 31,576 36,642 48,781 The Company publishes its consolidated financial statements expressed in Australian dollars. In this Annual Report, references to “U.S. dollars” or “US$” are to the currency of the United States of America (“U.S.”) and references to “Australian dollars”, “$” or “A$” are to the currency of Australia. For the convenience of the reader, this Annual Report contains translations of certain Australian dollar amounts into U.S. dollars at specified rates. These translations should not be construed as representations that the Australian dollar amounts actually represent such U.S. dollar amounts or could be converted into U.S. dollars at the rate indicated. Unless otherwise stated, the translations of Australian dollars into U.S. dollars have been made at the rate of US$0.6863 = A$1.00, the foreign exchange rate as issued weekly by the Board of Governors of the Federal Reserve System (www.federalreserve.gov/releases) on June 30, 2020.
candidates in prior financial years, however in the fiscal year ended June 30, 2021 we did generate revenues of A$15.2 million from the licensing of our drug products.
From time to time we receive Australian government research and development grants. If we lose funding from these research and development grants or fail to qualify for the R&D cash rebate, we may encounter difficulties in the funding of future research and development projects, which could harm our operating results.
We have historically received grants through the Australian federal government’s Research and Development Tax Incentive program (“R&D tax rebate”), under which the government provides a cash refund for a percentage of eligible research and development expenditures by small Australian entities (defined as Australian entities with less than A$20 million in revenue) having a tax loss. The R&D tax rebate is made by the Australian federal government for eligible research and development purposes based on the filing of an annual application. We received R&D tax rebates during fiscal 2019 and 2020 of A$1.4 million and A$1.0 million, respectively. In respect of fiscal 2020, we estimate the rebate which will be received in early fiscal 2020 and have accrued an amount of A$1.0 million as income in the statement of profit or loss and other comprehensive income. This rebate is available for our research and development activities in Australia, as well as activities in the United States and other countries to the extent such non-Australian based expenses relate to our activities in Australia, do not exceed 50% of the expenses for the relevant activities and are approved by the Australian government.
To the extent our research and development expenditures are deemed to be “ineligible,” then our rebates would decrease. In addition, the Australian government may in the future decide to modify the requirements of, reduce the amounts of the rebates available under, or discontinue the R&D tax rebate program.
Item 4. | Information on the Company |
10952.. (theC T Corporation System, 111 Eighth Avenue,Vcorp Services, LLC, 25 Robert Pitt Drive, Suite 204, Monsey, New York New York 10011, USA.101 Barclay240 Greenwich Street, 22W New York, N.Y.NY 10286. All information we file with the SEC is available through the SEC’s Electronic Data Gathering, Analysis and Retrieval system, which may be accessed through the SEC’s website at www.sec.gov.Since its inception in 1994, thefiveten active trials as follows:A Phase phase II clinical trial to examine paxalisib in newly diagnosed glioblastoma, the most common malignant and highlymost aggressive form of primary brain tumor in adults;A Phase
A Phase
paxalisib is participating in
The Company has out-licensed alldetailed below.
US FDA.
During
In May 2019, the Company reported interim data from the initial dose escalation component of the study. In the newly-diagnosed population, a maximum tolerated dose (MTD) of 60mg was achieved, which is higher than the MTD of 45mg reported in the phase I study in recurrent patients. Adverse events were generally mild and reversible. Dose-limiting toxicities of mucositis and hyperglycemia were consistent with the PI3K inhibitor class and with prior clinical experience of this agent. remains ongoing. In November 2019, the company reported initial2020, an interim efficacy data from the dose escalation componentanalysis was presented at the Society for Neuro-Oncology (SNO) Annual Meeting. These dataThis analysis showed a median progression-free survival (PFS) of 8.4 months, which compares favourably in an indirect comparison to temozolomide, the existing standard of care, which is associated with a mPFS of 5.3 months in this population. In June 2020, an additional interim analysis was presented at the American Association of Cancer Research (AACR) Virtual Annual Meeting II, which showed a mPFS of 8.5 months on the entire data set and a median overall survival (OS) of 17.7 months.17.5 months, each of which compare favourably to the corresponding figures of 5.3 months and 12.7 months which are associated in this patient population with temozolomide, the existing standard of care. The corresponding figuresafety profile of paxalisib continues to appear highly favourable, with rash, hyperglycemia, and oral mucositis representing the most common toxicities. In April 2021, the company presented additional interim data focusing on pharmacokinetics at the American Association for temozolomideCancer Research Annual Meeting. This data supported 60mg as the go-forward dose, and suggested no significant food effect, allowing for both fed and fasted administration in future studies.
In February 2020, the Company’s collaborators at St Jude Children’s Research Hospital in Memphis completedGlioblastoma (GBM AGILE) (NCT03970447)
A phase II investigator-initiated clinical study is ongoing at Dana-Farber Cancer Institute in Boston, MA, exploring paxalisib in combination with Herceptin (trastuzumab) for HER2+ breast cancer brain metastases, a population for which there are again no approved pharmacological treatments (NCT03765983). The Dana-Farber study is primarily funded by the hospital, with support via a financial grant from Kazia. Initial interim efficacy data is expected in 2H CY2020.
In May 2019, the Company joined a phase II / III adaptive clinical studytrial in glioblastoma, in January 2021. GBM AGILE is sponsored by the Alliance for Clinical Trials in Oncology, a large academic research organisation, and funded by the US National Cancer Institute (NCT03994796). The Alliance study is a genomically-guided, multi-drug study in patients with brain metastases from any primary tumour. Those with mutations affecting the PI3K / Akt / mTOR pathway will be assigned to receive paxalisib, while patients with other driving mutations may receive abemaciclib (Eli Lilly & Company) or entrectenib (Genentech, Inc). The study commenced recruitment on schedule in July 2019, and is expected to recruit approximately 150 patients, evenly divided between the three treatment arms, over the course of a two-year period. The company is not yet in a position to provide guidance on the timing of likely data read-outs.
In July 2019, the Company entered into a collaboration with researchers at Memorial Sloan Kettering Cancer Center in New York, NY to conduct a phase I clinical study with paxalisib in combination with radiotherapy for brain metastases and leptomeningeal metastases (NCT04192981). The Sloan Kettering study is primarily funded by the hospital, with support via a financial grant from Kazia. Recruitment commenced in Q4 CY2019 and the study is ongoing.
In September 2020 the Company announced a further collaboration with Dana-Farber Cancer Institute to investigate the use of paxalisib in primary central nervous system (CNS) lymphoma, a potential new indication for the drug.
In December 2019, the company entered into a preliminary agreement with the Global Coalition for Adaptive Research, (GCAR), a US-based 501(C) 501
Two key research papers were published in relation to paxalisib during FY2020. First, a paper by Wen et al. in Clinical Cancer Research presented a definitive analysis of the Genentech phase I clinical study in recurrent glioma. This data had previously only been available to researchers via a 2016 ASCO poster. Second, Ellingson et al. published a paper in the same journal detailing a post hoc analysis of the Genentech
Cantrixil (TRX-E-002-1)
Cantrixil (TRX-E-002-1) is the Company’s second clinical asset and is derived from a proprietary drug discovery program. It is being developed as a potential therapy for ovarian cancer.
Research undertaken by Yale University (New Haven, Connecticut) has provided preclinical evidence that Cantrixil is active against both differentiated cancer cells and tumor-initiating cells (sometimes referred to as ‘cancer stem cells’). The latter are thought to be an important component of chemotherapy resistance and disease recurrence in diseases such as ovarian cancer, and thus Cantrixil has potential to offermay provide benefit to the approximately three-quarters of ovarian cancer patients who are not adequately managed by conventional chemotherapy treatments.
In December 2016, the Company commencedpatients.
CY2021.
In order to ensure that a product can be included in the ARTG, a sponsoring company must make an application to the Therapeutic Goods Administration (“TGA”). The application usually consists of a form accompanied by data (based on the EU requirements) to support the quality, safety and efficacy of the product for its intended use and payment of a fee. Application details are available on the TGA website
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Under the Drug Price Competition and Patent Term Restoration Act of 1984, a sponsor may obtain marketing exclusivity for a period of time following FDA approval of certain drug applications, regardless of patent status, if the drug is a new chemical entity or if new clinical studies were required to support the marketing application for the drug. This marketing exclusivity prevents a third party from obtaining FDA approval for an identical or nearly identical drug under an Abbreviated New Drug Application or a “505(b)(2) New Drug Application”. The statute also allows a patent owner to obtain an extension of applicable patent terms for a period equal to
2021
In October 2020, the Company raised a further $23 million (net of costs) from a fully underwritten entitlement offer to eligible shareholders. The funds raisedpayment for EVT801, and will provide funding for the GCAR study.
ongoing studies being conducted for both assets.
this drug. EVT801 is expected to enter the clinic later in 2021.
Name | Country of incorporation | |
Kazia Laboratories Pty Ltd | Australia | |
Kazia Research Pty Ltd | Australia | |
Kazia Therapeutics Inc. | United States (Delaware) | |
Glioblast Pty Ltd Kazia Therapeutics (Hong Kong) Limited | Australia Hong Kong |
Item 4A. | Unresolved Staff Comments |
Item 5. | Operating and Financial Review and Prospects |
For the fiscal year ended June 30, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
A$’000 | A$’000 | A$’000 | ||||||||||
Revenue | — | — | 119 | |||||||||
Finance income | 66 | 100 | — | |||||||||
Other income: | ||||||||||||
Net foreign exchange gain | 5 | — | 224 | |||||||||
Payroll tax rebate | 2 | — | — | |||||||||
Reimbursement of expenses | — | 25 | 8 | |||||||||
Gain on legal settlement | — | — | 8,411 | |||||||||
Research and development rebate | 968 | 1,431 | 2,200 | |||||||||
Subsidies and grants | 20 | 9 | 685 | |||||||||
Gain on Revaluation of Contingent Consideration | — | — | 1,461 | |||||||||
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Total revenue and other income | 1,061 | 1,565 | 13,108 | |||||||||
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For the fiscal year ended June 30, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
A$’000 | A$’000 | A$’000 | ||||||||||
Revenue | 15,183 | — | — | |||||||||
Finance income | 42 | 66 | 100 | |||||||||
Other income: | ||||||||||||
Net foreign exchange gain | — | 5 | — | |||||||||
Payroll tax rebate | 2 | 2 | — | |||||||||
Reimbursement of expenses | — | — | 25 | |||||||||
Research and development rebate | — | 968 | 1,431 | |||||||||
Subsidies and grants | — | 20 | 9 | |||||||||
Total revenue and other income | 15,227 | 1,061 | 1,565 | |||||||||
Finance2020
2021.
conserving funds.
2019
2020.
(in A$ thousands) | 2020 | 2019 | 2018 | |||||||||
Net cash used in operating activities | (8,809 | ) | (6,714 | ) | (8,661 | ) | ||||||
Net cash from investing activities | — | 2,359 | 150 | |||||||||
Net cash from financing activities | 12,139 | 3,815 | — |
(in A$ thousands) | 2021 | 2020 | 2019 | |||||||||
Net cash used in operating activities | (9,110 | ) | (8,809 | ) | (6,714 | ) | ||||||
Net cash from investing activities | — | — | 2,359 | |||||||||
Net cash from financing activities | 28,108 | 12,139 | 3,815 |
in fiscal 2018 represents the cash portion of a legal settlement while the cash inflow in fiscal 2019 represents funds generated from the sale of shares in a listed entity, which were obtained via the settlement of an IP dispute.
2021.
During fiscal 2018 the Company undertook a consolidation of its share capital whereby one new ordinary share represented 10 of the old ordinary shares. As a result of fractional holdings, an additional 830 of “old” ordinary shares were issued during this process. In addition, a further 80,000 “new” ordinary shares were issued during fiscal 2018 to the Company’s Scientific Advisory Board in consideration of services rendered.
273,287.
Subject
Final results will be reported from the phase II clinical trial of paxalisib in glioblastoma;
Final results will be reported from the phase I clinical trial of Cantrixil (TRX-E-002-1) in ovarian cancer;
Interim results will be reported from the phase I clinical trial of paxalisib in DIPG at St Jude Children’s Research Hospital;
Interim results will be reported from the phase II clinical trial of paxalisib in HER2+ brain metastases at Dana-Farber Cancer Institute; and
Recruitment will commence to the GBM AGILE pivotal study of paxalisib in glioblastoma.
In parallel, the Company continues to actively explore licensing and partnering opportunities with other companies that have the potential to effect further refinementsfinancial information disclosed in the scopeSEC Form
amounts to be expended in future years, because we may have more or fewer drug candidates, they may be at different stages of their lifecycle and the trials deemed suitable for their development may be more or less costly;
The Company does not have any off-balance sheet arrangements.
F. Tabular disclosure of contractual obligations
The Company does not have any contractual obligations for future periods as at June 30, 2020.
Item 6. | Directors, Senior Management and Employees |
Iain Ross | Chairman, Non-Executive Director | |
Bryce Carmine | Non-Executive Director | |
Steven Coffey | Non-Executive Director | |
James Garner | Managing Director and Chief Executive Officer | |
Kate Hill | Company Secretary | |
Gabrielle Heaton | Director of Finance and Administration |
Name: | Iain Ross | |
Title: | Chairman, Non-Executive Director | |
Experience and expertise: | Iain, based in the UK, is an experienced Director and has served on a number of Australian company boards. He is Chairman of non-executive director of Palla Pharma Limited (ASX:PAL). In his career he has held senior positions in Sandoz AG, Fisons Plc,Hoffmann-La Roche AG and Celltech Group Plc and also undertaken a number ofstart-ups and turnarounds on behalf of banks and private equity groups. His track record includes multiple financing transactions having raised in excess of | |
Other current directorships: | ||
Special responsibilities: | Member of Remuneration and Nomination Committee, Member of the Audit, Risk and Governance Committee. |
Name: | Bryce Carmine | |
Title: | Non-Executive Director | |
Experience and expertise: | Bryce spent 36 years working for Eli Lilly & Co. and retired as Executive Vice President for Eli Lilly & Co, and President, Lilly Bio-Medicines. Prior to this he led the Global Pharmaceutical Sales and Marketing and was a member of the Company’s Executive Committee. Bryce previously held a series of product development portfolio leadership roles culminating when he was named President, Global Pharmaceutical Product Development, with responsibility for the entire late-phase pipeline development across all therapeutic areas for Eli Lilly. During his career with Lilly, Bryce held several country leadership positions including President Eli Lilly Japan, Managing Dir. Australia/NZ & General Manager of a JV for Lilly in Seoul, Korea. Bryce is currently Chairman and CEO of HaemaLogiX Pty Ltd, a Sydney based privately owned biotech. | |
Other current directorships: | None | |
Special responsibilities: | Chair of Remuneration and Nomination Committee, member of Audit, Risk and Governance Committee. |
Name: | Steven Coffey | ||
Title: | Non-Executive Director | ||
Experience and expertise: | Steven is a Chartered Accountant and registered company auditor and has over 35 years experience in the accounting and finance industry. He has been a partner in the chartered accounting firm Watkins Coffey Martin since 1993. not-for-profit | ||
Other current directorships: | |||
Special responsibilities: | Chair of Audit, Risk and Governance Committee, member of Remuneration and Nomination Committee. | ||
Name: | Dr. James Garner | ||
Title: | Managing Director and Chief Executive Officer | ||
Experience and expertise: | Dr Garner is an experienced life sciences executive who has previously worked with companies ranging from small biotechs to multinational pharmaceutical companies such as Biogen and Takeda. His career has focused on regional and global development of new medicines from preclinical to commercialisation. Dr Garner is a physician by training and holds an MBA from the University of Queensland. He began his career in hospital medicine and worked for a number of years as a corporate strategy consultant with Bain & Company before entering the pharmaceutical industry. Prior to joining Kazia in 2016, he led R&D strategy for Sanofi in Asia-Pacific and was based in Singapore. | ||
Other current directorships: | None | ||
Special responsibilities: | None | ||
Name: | Kate Hill | ||
Title: | Company Secretary | ||
Experience and expertise: | Kate has over 20 years’ experience as an audit partner with Deloitte Touche Tohmatsu, working with ASX listed and privately-owned clients. She has worked extensively in regulated environments including assisting with Initial Public Offerings, capital raising and general compliance, as well as operating in an audit environment. She is a Non-Executive Director of CountPlus Limited (ASX:CUP) and Elmo Software Limited (ASX:ELO) as well as Chair of the Audit and Risk Committee for both of these companies. She is also Chair of Seeing Machines Limited | ||
Name: | Gabrielle Heaton | ||
Title: | Director of Finance and Administration | ||
Experience and expertise: | Gabrielle Heaton has over 30 years of commercial experience in media, property services and healthcare for multinational, ASX listed and overseas companies. She has held a number of senior Finance positions including CFO, Quality Auditor and been responsible for Human Resources and IT. Gabrielle has a Bachelor of Business from the University of Technology and is a member of CPA Australia. |
2021.
The approval with respect to the financial year ended June 30, 2021, is expected to occur subsequent to the filing of this annual report.
2020.
Kazia.
The consolidated entity
consultants to assist with the determination of remuneration levels.
Short-term benefits | Short-term benefits | Post- employment benefits | Share-based payments | |||||||||||||||||||||
Movements in accrued leave | ||||||||||||||||||||||||
Cash salary | Cash | Non- | Super- | Equity- | ||||||||||||||||||||
and fees | Bonus | monetary | annuation | settled options | Total | |||||||||||||||||||
2020 | A$ | A$ | A$ | A$ | A$ | A$ | ||||||||||||||||||
Non-Executive Directors: | ||||||||||||||||||||||||
I Ross* | 135,272 | — | — | — | — | 135,272 | ||||||||||||||||||
B Carmine | 75,000 | — | — | 7,125 | — | 82,125 | ||||||||||||||||||
S Coffey | 75,000 | — | — | 7,125 | — | 82,125 | ||||||||||||||||||
Executive Directors: | ||||||||||||||||||||||||
J Garner | 473,000 | 180,000 | 23,423 | 62,035 | 206,465 | 944,923 | ||||||||||||||||||
Other Key Management Personnel: | ||||||||||||||||||||||||
G Heaton | 195,000 | 17,500 | 7,275 | 20,188 | 10,745 | 250,708 | ||||||||||||||||||
K Hill | 127,875 | 15,000 | — | — | 12,826 | 155,701 | ||||||||||||||||||
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1,081,147 | 212,500 | 30,698 | 96,473 | 230,036 | 1,650,854 | |||||||||||||||||||
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Short-term benefits | Short-term benefits | Post- employment benefits | Share-based payments | |||||||||||||||||||||
Movements in accrued leave | ||||||||||||||||||||||||
Cash salary | Cash | Non- | Super- | Equity- | ||||||||||||||||||||
and fees | Bonus | monetary | annuation | settled options | Total | |||||||||||||||||||
2021 | A$ | A$ | A$ | A$ | A$ | A$ | ||||||||||||||||||
Non-Executive Directors: | ||||||||||||||||||||||||
I Ross* | 147,436 | 20,000 | — | — | 119,067 | 286,503 | ||||||||||||||||||
B Carmine | 82,500 | 22,500 | — | 9,975 | 119,067 | 234,042 | ||||||||||||||||||
S Coffey | 82,500 | 22,500 | — | 9,975 | 119,067 | 234,042 | ||||||||||||||||||
Executive Directors: | ||||||||||||||||||||||||
J Garner | 503,000 | 240,000 | 90,400 | 70,585 | 228,651 | 1,132,636 | ||||||||||||||||||
Other Key Management Personnel: | ||||||||||||||||||||||||
G Heaton | 204,000 | 25,000 | (241 | ) | 21,755 | 15,069 | 265,583 | |||||||||||||||||
K Hill | 108,525 | 26,400 | — | — | 15,677 | 155,701 | ||||||||||||||||||
1,127,961 | 356,400 | 90,159 | 112,290 | 616,598 | 2,303,408 | |||||||||||||||||||
* | Salary paid in UK pounds, but disclosed in Australian dollars using |
2020.
Name: Title: Agreement commenced: Term of agreement: Details: | James Garner Chief Executive Officer, Managing Director February 1, 2016 Full-time employment Base salary to be reviewed annually by the Remuneration and Nomination Committee. James’s appointment with | |
The current base salary, as from January 1, | ||
Name: Title: Agreement commenced: Term of agreement: Details: | Gabrielle Heaton Director of Finance and Administration March 13, 2017 Full time employment Base salary to be reviewed annually by the Remuneration and Nomination Committee. Gabrielle’s appointment with | |
The current base salary, from January 1, | ||
Name: Title: Agreement commenced: Term of agreement: Details: | Kate Hill Company Secretary September 9, 2016 Part-time contractor Base remuneration is based on time worked. Daily rate to be reviewed annually by the Remuneration and Nomination Committee, with two-day week, applied from January 1, |
The options which were cancelled as part of this modification had the following terms:
Initially granted on February 1, 2016
500,000 had a strike price of A$1.988 and were fully vested at the time of the cancellation, expiry February 1, 2021
250,000 had a strike price of A$2.606 and were unvested at the time of the cancellation, expiry February 1, 2021
On the date of cancellation, the fair value of the options was de-minimus.
The newly issued options had the following terms:
Strike price of A$0.49
50% fully vested at time of grant, the remainder to vest equally over a three-year period starting January 4, 2020
Expiry January 4, 2024
Fair value at grant date of A$216,000
Grant date | No of options | Vesting date | Exercise date | Expiry date | Exercise price $ | Fair value per option at grant $ | ||||||||||||||||||
13/11/2019 | 600,000 | 13/11/2019 | 13/11/2019 | 04/01/2024 | $ | 0.49 | $ | 0.18 | ||||||||||||||||
13/11/2019 | 200,000 | 04/01/2020 | 04/01/2020 | 04/01/2024 | $ | 0.49 | $ | 0.18 | ||||||||||||||||
13/11/2019 | 200,000 | 04/01/2021 | 04/01/2021 | 04/01/2024 | $ | 0.49 | $ | 0.18 | ||||||||||||||||
13/11/2019 | 200,000 | 04/01/2022 | 04/01/2022 | 04/01/2024 | $ | 0.49 | $ | 0.18 | ||||||||||||||||
13/01/2020 | 25,000 | 13/01/2021 | 13/01/2021 | 13/01/2025 | $ | 0.88 | $ | 0.34 | ||||||||||||||||
13/01/2020 | 25,000 | 13/01/2022 | 13/01/2022 | 13/01/2025 | $ | 0.88 | $ | 0.34 | ||||||||||||||||
13/01/2020 | 25,000 | 13/01/2023 | 13/01/2023 | 13/01/2025 | $ | 0.88 | $ | 0.34 | ||||||||||||||||
13/01/2020 | 25,000 | 13/01/2024 | 13/01/2024 | 13/01/2025 | $ | 0.88 | $ | 0.34 | ||||||||||||||||
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1,300,000 | ||||||||||||||||||||||||
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2020.
Grant date | No of options | Vesting date | Expiry date | Exercise price $ | Fair value at grant date $ | |||||||||||||||
09/11/2020 | 200,000 | 13/01/2021 | 13/01/2025 | $ | 0.881 | $ | 0.450 | |||||||||||||
09/11/2020 | 200,000 | 13/01/2022 | 13/01/2025 | $ | 0.881 | $ | 0.490 | |||||||||||||
09/11/2020 | 200,000 | 13/01/2023 | 13/01/2025 | $ | 0.881 | $ | 0.520 | |||||||||||||
09/11/2020 | 200,000 | 13/01/2024 | 13/01/2025 | $ | 0.881 | $ | 0.550 | |||||||||||||
09/11/2020 | 300,000 | 01/01/2021 | 09/11/2024 | $ | 1.132 | $ | 0.379 | |||||||||||||
09/11/2020 | 300,000 | 01/07/2021 | 09/11/2024 | $ | 1.132 | $ | 0.403 | |||||||||||||
09/11/2020 | 300,000 | 01/01/2022 | 09/11/2024 | $ | 1.132 | $ | 0.425 | |||||||||||||
09/11/2020 | 300,000 | 01/07/2022 | 09/11/2024 | $ | 1.132 | $ | 0.446 | |||||||||||||
04/01/2021 | 25,000 | 04/01/2022 | 04/01/2025 | $ | 1.690 | $ | 0.520 | |||||||||||||
04/01/2021 | 25,000 | 04/01/2023 | 04/01/2025 | $ | 1.690 | $ | 0.576 | |||||||||||||
04/01/2021 | 25,000 | 04/01/2024 | 04/01/2025 | $ | 1.690 | $ | 0.627 | |||||||||||||
04/01/2021 | 25,000 | 04/01/2025 | 04/01/2025 | $ | 1.690 | $ | 0.671 | |||||||||||||
2,100,000 | ||||||||||||||||||||
were exercised by Kate Hill.
There are procedures in place, agreed by the Board, to enable directors in furtherance of their duties to seek independent professional advice at the Company’s expense. The appointment and expiration dates of each director in office at the date of this report is as follows:
Name | Position | Year First Appointed | Current term expires | |||
Bryce Carmine | Non-executive Director | 2015 | ||||
Iain Ross |
| 2014 | Nov-21 | |||
Steven Coffey | Non-executive Director | 2012 | Nov-22 | |||
James Garner | Managing | 2016 | N/A* |
* | The managing director is exempt from standing for re-election under the Company’s constitution and Australian corporate law. |
Category of Activity | 2020 | 2019 | 2018 | |||||||||
Research and Development | 3.6 | 3.6 | 3.6 | |||||||||
Finance and Administration | 1.7 | 1.7 | 1.7 | |||||||||
|
|
|
|
|
| |||||||
Total | 5.3 | 5.3 | 5.3 | |||||||||
|
|
|
|
|
| |||||||
Geographic Location | 2020 | 2019 | 2018 | |||||||||
Australia | 5.3 | 5.3 | 5.3 | |||||||||
United States | 0 | 0 | 0 | |||||||||
|
|
|
|
|
| |||||||
Total | 5.3 | 5.3 | 5.3 | |||||||||
|
|
|
|
|
|
Category of Activity | 2021 | 2020 | 2019 | |||||||||
Research and Development | 4.6 | 3.6 | 3.6 | |||||||||
Finance and Administration | 1.7 | 1.7 | 1.7 | |||||||||
Total | 6.3 | 5.3 | 5.3 | |||||||||
Geographic Location | 2021 | 2020 | 2019 | |||||||||
Australia | 5.3 | 5.3 | 5.3 | |||||||||
United States | 1 | 0 | 0 | |||||||||
Total | 6.3 | 5.3 | 5.3 | |||||||||
2021:
Balance at start of year | Received as part of rem | Additions | Disposals | Balance at end of year | ||||||||||||||||
Ordinary shares | ||||||||||||||||||||
B Carmine* | 131,293 | — | 135,000 | — | 266,293 | |||||||||||||||
S Coffey* | 181,474 | — | 145,000 | — | 326,474 | |||||||||||||||
J Garner* | 110,000 | — | 165,000 | — | 275,000 | |||||||||||||||
I Ross* | 475,001 | — | 325,000 | — | 800,001 | |||||||||||||||
K Hill* | 30,000 | — | — | — | 30,000 | |||||||||||||||
G Heaton | — | — | 10,000 | — | 10,000 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | 927,768 | — | 780,000 | — | 1,707,768 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
Balance at start of year | Received as part of rem | Additions | Disposals | Balance at end of year | ||||||||||||||||
Ordinary shares | ||||||||||||||||||||
B Carmine* | 266,293 | — | 106,400 | — | 372,693 | |||||||||||||||
S Coffey* | 326,474 | — | 107,791 | — | 434,265 | |||||||||||||||
J Garner* | 275,000 | — | 155,000 | — | 430,000 | |||||||||||||||
I Ross* | 800,001 | — | 200,000 | — | 1,000,001 | |||||||||||||||
K Hill* | 30,000 | — | 265,000 | — | 295,000 | |||||||||||||||
G Heaton* | 10,000 | — | 103,168 | — | 113,168 | |||||||||||||||
Total | 1,707,768 | — | 937,359 | — | 2,645,127 | |||||||||||||||
* | Each Director and Key Management Personnel owns less than 1% of shareholding. |
Balance at start of year | Granted as part of rem | Expired | Cancelled as part of modification | Balance at end of year | ||||||||||||||||
Ordinary shares | ||||||||||||||||||||
S Coffey* | 5,875 | — | (5,875 | ) | — | — | ||||||||||||||
J Garner**,*** | 750,000 | 1,200,000 | (750,000 | ) | 1,200,000 | |||||||||||||||
K Hill** | 270,000 | �� | 50,000 | — | 320,000 | |||||||||||||||
G Heaton ** | 192,000 | 50,000 | — | 242,000 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | 1,217,875 | 1,300,000 | (5,875 | ) | (750,000 | ) | 1,762,000 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
Balance at the start of the year | Granted as remuneration | Expired | Exercised | Balance at the end of the year | ||||||||||||||||
Options over ordinary shares | ||||||||||||||||||||
J Garner* | 1,200,000 | 800,000 | — | — | 2,000,000 | |||||||||||||||
K Hill* | 320,000 | 50,000 | — | (245,000 | ) | 125,000 | ||||||||||||||
G Heaton* | 242,000 | 50,000 | — | (96,500 | ) | 195,500 | ||||||||||||||
Iain Ross* | — | 400,000 | — | — | 400,000 | |||||||||||||||
Bryce Carmine* | — | 400,000 | — | — | 400,000 | |||||||||||||||
Steven Coffey* | — | 400,000 | — | — | 400,000 | |||||||||||||||
1,762,000 | 2,100,000 | — | (341,500 | ) | 3,520,500 | |||||||||||||||
* |
|
Options issued under the Employee Share Option Plan. Unvested options are forfeited upon cessation of employment with the Company. |
|
The granted options were issued as part of remuneration and under the Employee Share Option Plan. Unvested options are forfeited upon cessation of employment with the Company.
2020.2021.
5% or greater shareholders Hishenk Pty Limited and associated entities Platinum International Healthcare Fund Quest Asset Partners Pty Ltd 2019.94,623,369132,012,209 ordinary shares outstanding at October 14, 2020,September 30, 2021, by each person known by us to be the beneficial owner of more than 5% of our ordinary shares, as well as their holdings on August 31, 2019October 14, 2020 and August 31, 2018. Ordinary shares beneficially owned October 14, 2020 August 31, 2019 August 31, 2018 Number % Number % Number % 18,570,000 16.1 % 11,108,792 17.9 % 6,684,914 13.8 % 11,356,760 9.9 % 6,578,948 10.6 % — 0.0 % 7,215,790 6.3 % — 0.0 % — 0.0 % 18,715,000 14.44 % 18,570,000 16.1 % 11,108,792 17.9 % 7,084,856 5.47 % 11,356,760 9.9 % 6,578,948 10.6 % 11,101,710 8.4 % 7,215,790 6.3 % — 0.0 % October 12, 2020,September 30, 2021, there were 3,130,299 of the Company’s ADSs outstanding, representing 31,302,996 ordinary shares (or 27.1% of the then outstanding ordinary shares). At October 12, 2020,September 30, 2021, there were 52 registered holders of the Company’s ADSs. On that same date, 100 ordinary shares were held directly by U.S. holders.2020,2021, and up to the date of this report, we did not enter into any transactions or loans with any: (i) enterprises that directly or indirectly, through one or more intermediaries, control, are controlled by or are under common control with us; (ii) associates; (iii) individuals owning, directly or indirectly, an interest in our voting power that gives them significant influence over us, and close members of any such individual’s family; (iv) executive officers and close members of such individuals’ families; or (v) enterprises in which a substantial interest in our voting power is owned, directly or indirectly, by any person described in (iii) or (iv) or over which such person is able to exercise significant influence.
Item 8. | Financial Information |
2019.The consolidated entity is continuing to prosecuteAPOtrend. In June 2019 the Austrian Supreme Court rendered a final decision on the patent infringement. As a result, Kazia is entitled to make a claim against APOtrend, in relation to two of the three products which were the subject of the claim, while for the third product, Kazia’s claim was denied. In respect of this third product, APOtrend is entitled to claim compensation for damages caused by a preliminary injunction. At the date of this report, no claim has been made by either party. Kazia is entitled to access APOtrend’s books to calculate a license fee/other payment claims against APOtrend. Kazia is currently trying to enforce this right in court. The consolidated entity hasand had provided a guarantee to the value of €250,000 ($409,098) with the court to provide a security for potential damage claimsclaimes raised by APOtrend (which is not limitedAPOtrend. During fiscal 2021 the proceedings were settled and the deposit was released in full back to this amount, however). As at 30 June 2020, the receivable balance continues to be fully impaired on the basis that it is unlikely to be recovered.Kazia.2019 or 2018.
Under Australian law, foreign persons require the approval from the Australian Treasurer to acquire more than a limited percentage of the interests in an Australian company. These limitations are set forth in the A
If a, where the U.S. resident holds less than 10% of the voting rights in our company, that is a Non-Australian Shareholder directly owns aor 5% where the U.S. resident holds 10% or more interest, the Australian tax withheld on unfranked dividends (that are not CFI) paid by us to whom a resident of the United States is beneficially entitled is limitedvoting rights in our company. The Double Taxation Convention does not apply to 5%.impose withholding tax on dividends where the ADSs are effectively connected to a permanent establishment or a fixed base carried on by the owner of the ADSs in Australia through which the Non-Australian Shareholders carry on business or provide independent personal services, respectively. In limited circumstances,such a case, the rateprovisions of withholding canArticle 7 (Business profits) or Article 14 (Independent personal services) of the Double Taxation Conventions, as the case may be, reduced to zero.
shall apply.
Broadly, where there is a disposal of certain taxable Australian property, the purchaser will be required to withhold and remit to the Australian Taxation Office (“ATO”) 12.5% of the proceeds from the sale. A transaction is excluded from the withholding requirements in certain circumstances, including where the value of the taxable Australian property is less than A$750,000, the transaction is an
Item 11. | Quantitative and Qualitative Disclosures about Market Risk |
2221 – Financial Instruments”.2020,2021, the Company did not hold derivative financial instruments in managing its foreign currency, however, the Company may from time to time enter into hedging arrangements where circumstances are deemed appropriate. The Company used natural hedging to reduce the foreign currency risk, which involved processing USD payments from cash held in USD. Foreign subsidiaries with a functional currency of Australian Dollar (“AUD”) have exposure to the local currency of these subsidiaries and any other currency these subsidiaries trade in.2221 – Financial Instruments”.
Item 12. | Description of Securities Other than Equity Securities |
US$5.00 (or less) per 100 ADSs (or portion of 100 ADSs) • Issuance of ADSs, including issuances resulting from a distribution of shares or rights or other property • Cancellation of ADSs for the purpose of withdrawal, including if the deposit agreement terminates US$.05 (or less) per ADS • Any cash distribution to ADS registered holders A fee equivalent to the fee that would be payable if securities distributed to you had been shares and the shares had been deposited for issuance of ADSs • Distribution of securities distributed to holders of deposited securities which are distributed by the depositary to ADS registered holders US$.05 (or less) per ADSs per calendar year • Depositary services Registration or transfer fees • Transfer and registration of shares on the Company’s share register to or from the name of the depositary or its agent when you deposit or withdraw shares Expenses of the depositary • Cable, telex and facsimile transmissions (when expressly provided in the deposit agreement) • Converting foreign currency to U.S. dollars Taxes and other governmental charges the depositary or the custodian have to pay on any ADS or share underlying an ADS, for example, stock transfer taxes, stamp duty or withholding taxes • As necessary Any charges incurred by the depositary or its agents for servicing the deposited securities • As necessary
Item 13. | Defaults, Dividend Arrearages and Delinquencies |
Item 14. | Material Modifications to the Rights of Security Holders and the Use of Proceeds |
Item 15. | Controls and Procedures |
2021. 2021. 2021.2020.20202021 based on the criteria set forth in2020.2020.2021. Based on this assessment, management concluded that the Company’s internal control over financial reporting is effective as of June 30, 2020.
Item 16A. | Audit Committee Financial Expert |
Item 16B. | Code of Ethics |
Item 16C. | Principal Accounting Fees and Services |
2020.
2020 A$’000 | 2019 A$’000 | 2018 A$’000 | ||||||||||
Audit fees - Grant Thornton Audit Pty Ltd | 124 | 120 | 131 | |||||||||
SEC Form F3 consent | — | — | 11 | |||||||||
|
|
|
|
|
| |||||||
Total fees | 124 | 120 | 142 | |||||||||
|
|
|
|
|
|
2021 A$’000 | 2020 A$’000 | |||||||
Audit fees - Grant Thornton Audit Pty Ltd | 151 | 124 | ||||||
Total fees | 151 | 124 | ||||||
SEC Form F3 consent
Fees paid in respect of filing of SEC Form F-3 consent services, which relates to procedures required by the auditor to issue their consent in the document.
Item 16D. | Exemptions from the Listing Standards for Audit Committees |
Item 16E. | Purchases of Equity Securities by the Issuer and Affiliated Purchasers |
Item 16F. | Changes in registrant’s Certifying Accountant |
Item 16G. | Corporate Governance |
Kazia is exempt from NASDAQ’s quorum requirements applicable to meetings of ordinary shareholders. In keeping with the law of Australia and generally accepted business practices in Australia, Kazia’s Constitution requires a quorum of three shareholders for a shareholders’ meeting.
Kazia will rely on an exemption from the requirement that at least two members of a compensation committee be “independent” as defined in NASDAQ Rule 5605(a) (2). The ASX Listing Rules and Australian law do not require an Australian company to establish a compensation committee, known in Australia as a remuneration committee, which is comprised solely of non-executive directors if the company is not included in the S&P/ASX300 Index at the beginning of its financial year. Kazia was not included on the S&P/ASX300 Index at the beginning of its last financial year and, hence, is not required under ASX Listing Rules to have a remuneration (compensation) committee. The ASX Corporate Governance Principles and Recommendations contain a non-binding recommendation that all ASX-listed companies should have a remuneration committee comprised of at least three members, a majority of whom (including the chair) are “independent”. While these recommendations contain guidelines for assessing independence, ASX-listed entities are able to adopt their own definitions of an independent director for this purpose and is different from the definition in NASDAQ Rule 5605(a) (2). That being said, Kazia has, and expects to continue to have, a Remuneration and Nomination Committee consisting of three non-executive directors.
Kazia is listed on the ASX and subject to Chapter 10 of the ASX listing rules, which requires shareholder approval for an acquisition from or disposal to a “related party” (including a director) or “substantial shareholder” (who is entitled to at least 10% of the voting securities) of “substantial assets”. The Australian Corporations Act to which Kazia is also subject generally requires shareholder approval for a transaction with a director or director-controlled entity unless on arm’s length terms.
Item 16H. | Mine Safety Disclosure |
Item 17. | Financial Statements |
Item 18. | Financial Statements |
Item 19. | Exhibits |
(a) | Exhibits |
* | Filed herewith |
✓ | Certain confidential information in this exhibit was omitted by means of marking such information with brackets (“[***]”) because the identified confidential information is not material and is the type that the registrant treats as private or confidential. |
KAZIA THERAPEUTICS LIMITED |
/s/ James Garner |
Dr James Garner |
Managing Director and Chief Executive Officer |
Date: October |
Page | ||||
Consolidated Financial Statements for June 30, 2021, 2020 | ||||
F-2 | ||||
F-3 | ||||
F-5 | ||||
F-6 | ||||
F-8 | ||||
F-9 |
Note | 2020 A$’000 | 2019 A$’000 | 2018 A$’000 | |||||||||||||
Revenue from continuing operations | — | — | 119 | |||||||||||||
Other income | 5 | 995 | 1,465 | 12,989 | ||||||||||||
Finance income — bank interest | 66 | 100 | — | |||||||||||||
Expenses | ||||||||||||||||
Research and development expense | (9,494 | ) | (6,475 | ) | (9,774 | ) | ||||||||||
General and administrative expense | (3,690 | ) | (3,785 | ) | (5,598 | ) | ||||||||||
Loss on disposal of fixed assets | — | (1 | ) | (137 | ) | |||||||||||
Fair value losses on financial assets at fair value through profit or loss | (168 | ) | (1,809 | ) | (1,114 | ) | ||||||||||
Loss on revaluation of contingent consideration | (474 | ) | (63 | ) | — | |||||||||||
Impairment of financial assets | — | — | (2,830 | ) | ||||||||||||
|
|
|
|
|
| |||||||||||
Loss before income tax expense from continuing operations | (12,765 | ) | (10,568 | ) | (6,344 | ) | ||||||||||
Income tax benefit | 7 | 298 | 298 | 305 | ||||||||||||
|
|
|
|
|
| |||||||||||
Loss after income tax expense for the year | (12,467 | ) | (10,270 | ) | (6,039 | ) | ||||||||||
Other comprehensive income | ||||||||||||||||
Items that may be reclassified subsequently to profit or loss | ||||||||||||||||
Gain/(Loss) on the revaluation of available-for-sale financial assets, net of tax | — | — | — | |||||||||||||
Net exchange difference on translation of financial statements of foreign controlled entities, net of tax | (4 | ) | (89 | ) | (251 | ) | ||||||||||
|
|
|
|
|
| |||||||||||
Other comprehensive income for the year, net of tax | (4 | ) | (89 | ) | (251 | ) | ||||||||||
Total comprehensive income for the year | (12,471 | ) | (10,359 | ) | (6,290 | ) | ||||||||||
Loss for the year is attributable to: | ||||||||||||||||
Owners of Kazia Therapeutics Limited | (12,467 | ) | (10,270 | ) | (6,039 | ) | ||||||||||
|
|
|
|
|
| |||||||||||
Total loss for the year | (12,467 | ) | (10,270 | ) | (6,039 | ) | ||||||||||
Total comprehensive income for the year is attributable to: | ||||||||||||||||
Owners of Kazia Therapeutics Limited | (12,471 | ) | (10,359 | ) | (6,290 | ) | ||||||||||
|
|
|
|
|
| |||||||||||
Total comprehensive income for the year | (12,471 | ) | (10,359 | ) | (6,290 | ) | ||||||||||
|
|
|
|
|
|
2021
Note | 2021 A$’000 | 2020 A$’000 | 2019 A$’000 | |||||||||||||
Revenue from continuing operations | 5 | 15,183 | — | — | ||||||||||||
Other income | 6 | 2 | 995 | 1,465 | ||||||||||||
Finance income — bank interest | 42 | 66 | 100 | |||||||||||||
Expenses | ||||||||||||||||
Research and development expense | (14,541 | ) | (9,494 | ) | (6,475 | ) | ||||||||||
General and administrative expense | (7,022 | ) | (3,690 | ) | (3,785 | ) | ||||||||||
Loss on disposal of fixed assets | — | — | (1 | ) | ||||||||||||
Fair value losses on financial assets at fair value through profit or loss | 0 | (168 | ) | (1,809 | ) | |||||||||||
Loss on revaluation of contingent consideratio n | (2,570 | ) | (474 | ) | (63 | ) | ||||||||||
Loss before income tax expense from continuing operations | (8,906 | ) | (12,765 | ) | (10,568 | ) | ||||||||||
Income tax benefit | 8 | 484 | 298 | 298 | ||||||||||||
Loss after income tax expense for the year | (8,422 | ) | (12,467 | ) | (10,270 | ) | ||||||||||
Other comprehensive income | ||||||||||||||||
Items that may be reclassified subsequently to profit or loss | ||||||||||||||||
Net exchange difference on translation of financial statements of foreign controlled entities, net of tax | 2 | (4 | ) | (89 | ) | |||||||||||
Other comprehensive income for the year, net of tax | 2 | (4 | ) | (89 | ) | |||||||||||
Total comprehensive income for the year | (8,420 | ) | (12,471 | ) | (10,359 | ) | ||||||||||
Loss for the year is attributable to: | ||||||||||||||||
Owners of Kazia Therapeutics Limited | (8,422 | ) | (12,467 | ) | (10,270 | ) | ||||||||||
Total loss for the year | (8,422 | ) | (12,467 | ) | (10,270 | ) | ||||||||||
Total comprehensive income for the year is attributable to: | ||||||||||||||||
Owners of Kazia Therapeutics Limited | (8,420 | ) | (12,471 | ) | (10,359 | ) | ||||||||||
Total comprehensive income for the year | (8,420 | ) | (12,471 | ) | (10,359 | ) | ||||||||||
Note | 2020 | 2019 | 2018 | |||||||||||||
A$ | A$ | A$ | ||||||||||||||
Cents | Cents | Cents | ||||||||||||||
Earnings per share for loss from continuing operations attributable to the owners of Kazia Therapeutics Limited | ||||||||||||||||
Basic earnings per share | 32 | (17.07 | ) | (17.86 | ) | (12.48 | ) | |||||||||
Diluted earnings per share | 32 | (17.07 | ) | (17.86 | ) | (12.48 | ) | |||||||||
2020 | 2019 | 2018 | ||||||||||||||
A$ | A$ | A$ | ||||||||||||||
Cents | Cents | Cents | ||||||||||||||
Earnings per share for loss attributable to the owners of Kazia Therapeutics Limited | ||||||||||||||||
Basic earnings per share | 32 | (17.07 | ) | (17.86 | ) | (12.48 | ) | |||||||||
Diluted earnings per share | 32 | (17.07 | ) | (17.86 | ) | (12.48 | ) |
Note | 2021 | 2020 | 2019 | |||||||||||||
A$ | A$ | A$ | ||||||||||||||
Cents | Cents | Cents | ||||||||||||||
Earnings per share for loss from continuing operations attributable to the owners of Kazia Therapeutics Limited | ||||||||||||||||
Basic earnings per share | 31 | (7.16 | ) | (17.07 | ) | (17.86 | ) | |||||||||
Diluted earnings per shar e | 31 | (7.16 | ) | (17.07 | ) | (17.86 | ) | |||||||||
2021 | 2020 | 2019 | ||||||||||||||
A$ | A$ | A$ | ||||||||||||||
Cents | Cents | Cents | ||||||||||||||
Earnings per share for loss attributable to the owners of Kazia Therapeutics Limited | ||||||||||||||||
Basic earnings per share | 31 | (7.16 | ) | (17.07 | ) | (17.86 | ) | |||||||||
Diluted earnings per share | 31 | (7.16 | ) | (17.07 | ) | (17.86 | ) |
Note | 2020 A$’000 | 2019 A$’000 | ||||||||||
Assets | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | 8 | 8,764 | 5,434 | |||||||||
Trade and other receivables | 9 | 1,352 | 1,711 | |||||||||
Other | 10 | 537 | 370 | |||||||||
|
|
|
| |||||||||
Total current assets | 10,653 | 7,515 | ||||||||||
|
|
|
| |||||||||
Non-current assets | ||||||||||||
Financial assets | 11 | — | 168 | |||||||||
Intangibles | 12 | 12,410 | 13,494 | |||||||||
|
|
|
| |||||||||
Total non-current assets | 12,410 | 13,662 | ||||||||||
|
|
|
| |||||||||
Total assets | 23,063 | 21,177 | ||||||||||
|
|
|
| |||||||||
Liabilities | ||||||||||||
Current liabilities | ||||||||||||
Trade and other payables | 13 | 3,489 | 1,764 | |||||||||
Provisions | 14 | 191 | 136 | |||||||||
Contingent consideration | 15 | 1,387 | — | |||||||||
|
|
|
| |||||||||
Total current liabilities | 5,067 | 1,900 | ||||||||||
|
|
|
| |||||||||
Non-Current liabilities | ||||||||||||
Deferred tax | 16 | 3,413 | 3,711 | |||||||||
Contingent consideration | 17 | 458 | 1,371 | |||||||||
|
|
|
| |||||||||
Total non-current liabilities | 3,871 | 5,082 | ||||||||||
|
|
|
| |||||||||
Total liabilities | 8,938 | 6,982 | ||||||||||
|
|
|
| |||||||||
Net assets | 14,125 | 14,195 | ||||||||||
|
|
|
| |||||||||
Equity | ||||||||||||
Contributed equity | 18 | 48,781 | 36,642 | |||||||||
Other contributed equity | 19 | 464 | 464 | |||||||||
Reserves | 20 | 1,066 | 2,037 | |||||||||
Accumulated losses | (36,186 | ) | (24,948 | ) | ||||||||
|
|
|
| |||||||||
Equity attributable to the owners of Kazia Therapeutics Limited | 14,125 | 14,195 | ||||||||||
|
|
|
| |||||||||
|
|
|
| |||||||||
Total equity | 14,125 | 14,195 | ||||||||||
|
|
|
|
2021
Note | 2021 A$’000 | 2020 A$’000 | ||||||||||
Assets | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | 9 | 27,587 | 8,764 | |||||||||
Trade and other receivables | 10 | 84 | 1,352 | |||||||||
Other | 11 | 1,720 | 537 | |||||||||
Total current assets | 29,391 | 10,653 | ||||||||||
Non-current assets | ||||||||||||
Trade and other receivables | 10 | 6,694 | — | |||||||||
Intangibles | 12 | 22,003 | 12,410 | |||||||||
Total non-current assets | 28,697 | 12,410 | ||||||||||
Total assets | 58,088 | 23,063 | ||||||||||
Liabilities | ||||||||||||
Current liabilities | ||||||||||||
Trade and other payables | 13 | 4,933 | 3,489 | |||||||||
Employee benefits | 14 | 229 | 191 | |||||||||
Contingent consideration | 15 | 3,165 | 1,387 | |||||||||
Total current liabilities | 8,327 | 5,067 | ||||||||||
Non-Current liabilities | ||||||||||||
Deferred tax | 16 | 2,928 | 3,413 | |||||||||
Employee benefits | 14 | 55 | — | |||||||||
Contingent consideration | 15 | 8,927 | 458 | |||||||||
Total non-current liabilities | 11,910 | 3,871 | ||||||||||
Total liabilities | 20,237 | 8,938 | ||||||||||
Net assets | 37,851 | 14,125 | ||||||||||
Equity | ||||||||||||
Contributed equity | 17 | 80,290 | 48,781 | |||||||||
Other contributed equit y | 18 | 464 | 464 | |||||||||
Reserves | 19 | 1,301 | 1,066 | |||||||||
Accumulated losses | (44,204 | ) | (36,186 | ) | ||||||||
Equity attributable to the owners of Kazia Therapeutics Limited | 37,851 | 14,125 | ||||||||||
Total equity | 37,851 | 14,125 | ||||||||||
Contributed equity A$’000 | Other Contributed equity A$’000 | Reserves A$’000 | Accumulated Losses A$’000 | Non- controlling Interest A$’000 | Total equity A$’000 | |||||||||||||||||||
Balance at 1 July 2017 | 193,769 | 600 | 1,930 | (170,961 | ) | — | 25,338 | |||||||||||||||||
Loss after income tax expense for the year | — | — | — | (6,039 | ) | — | (6,039 | ) | ||||||||||||||||
Other comprehensive income for the year, net of tax | — | — | (251 | ) | — | — | (251 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total comprehensive income for the year | — | — | (251 | ) | (6,039 | ) | — | (6,290 | ) | |||||||||||||||
Transactions with owners in their capacity as owners: | ||||||||||||||||||||||||
Share issue costs | — | — | — | — | — | — | ||||||||||||||||||
Transfers | — | — | — | — | — | — | ||||||||||||||||||
Cancellation of share capital | (162,223 | ) | — | — | 162,223 | — | — | |||||||||||||||||
Conversion of convertible note | — | (136 | ) | — | 136 | — | — | |||||||||||||||||
Employee share-based payment options | — | — | — | — | — | — | ||||||||||||||||||
Share based payment | — | — | 165 | — | — | 165 | ||||||||||||||||||
Issue of shares | 30 | — | — | — | — | 30 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Balance at 30 June 2018 | 31,576 | 464 | 1,843 | (14,641 | ) | — | 19,242 |
Statements
Contributed equity A$’000 | Other Contributed equity A$’000 | Reserves A$’000 | Accumulated Losses A$’000 | Non- controlling Interest A$’000 | Total equity A$’000 | |||||||||||||||||||
Balance at 1 July 2018 | 31,576 | 464 | 1,843 | (14,641 | ) | 0— | 19,242 | |||||||||||||||||
Adjustment for change in accounting policy | 0— | 0— | 37 | (37 | ) | 0— | 0— | |||||||||||||||||
Balance at 1 July 2018 – restated | 31,576 | 464 | 1,880 | (14,678 | ) | 0— | 19,242 | |||||||||||||||||
Loss after income tax expense for the year | 0— | 0— | 0— | (10,270 | ) | 0— | (10,270 | ) | ||||||||||||||||
Other comprehensive income for the year, net of tax | 0— | 0— | (89 | ) | 0— | 0— | (89 | ) | ||||||||||||||||
Total comprehensive income for the year | 0— | 0— | (89 | ) | (10,270 | ) | 0— | (10,359 | ) | |||||||||||||||
Transactions with owners in their capacity as owners: | ||||||||||||||||||||||||
Share issue costs | (340 | ) | 0— | 0— | 0— | 0— | (340 | ) | ||||||||||||||||
Transfers | 0— | 0— | 0— | 0— | 0— | 0— | ||||||||||||||||||
Share based payment | 0— | 0— | 246 | 0— | 0— | 246 | ||||||||||||||||||
Issue of shares | 5,406 | 0— | 0— | 0— | 0— | 5,406 | ||||||||||||||||||
Balance at 30 June 2019 | 36,642 | 464 | 2,037 | (24,948 | ) | 0— | 14,195 | |||||||||||||||||
Contributed equity A$’000 | Other Contributed equity A$’000 | Reserves A$’000 | Accumulated Losses A$’000 | Non- controlling Interest A$’000 | Total equity A$’000 | |||||||||||||||||||
Balance at 1 July 2019 | 36,642 | 464 | 2,037 | (24,948 | ) | 0— | 14,195 | |||||||||||||||||
Loss after income tax expense for the yea r | 0— | 0— | 0— | (12,467 | ) | 0— | (12,467 | ) | ||||||||||||||||
Other comprehensive income for the year, net of tax | 0— | 0— | (4 | ) | 0— | 0— | (4 | ) | ||||||||||||||||
Total comprehensive income for the year | 0— | 0— | (4 | ) | (12,467 | ) | 0— | (12,471 | ) | |||||||||||||||
Transactions with owners in their capacity as owners: | ||||||||||||||||||||||||
Share issue costs | (833 | ) | 0— | 0— | 0— | 0— | (833 | ) | ||||||||||||||||
Transfers | 0— | 0— | 0— | 0— | 0— | 0— | ||||||||||||||||||
Conversion of convertible note | 0— | 0— | 0— | 0— | 0— | 0— | ||||||||||||||||||
Employee share-based payment options | 0— | 0— | 0— | 0— | 0— | 0— | ||||||||||||||||||
Share based payment | 0— | 0— | 262 | 0— | 0— | 262 | ||||||||||||||||||
Issue of shares | 12,972 | 0— | 0— | 0— | 0— | 12,972 | ||||||||||||||||||
Expired options | 0— | 0— | (1,230 | ) | 1,230 | 0— | 0— | |||||||||||||||||
Balance at 30 June 2020 | 48,781 | 464 | 1,066 | (36,186 | ) | 0— | 14,125 |
Contributed equity A$’000 | Other Contributed equity A$’000 | Reserves A$’000 | Accumulated Losses A$’000 | Non- controlling Interest A$’000 | Total equity A$’000 | |||||||||||||||||||
Balance at 1 July 2018 | 31,576 | 464 | 1,843 | (14,641 | ) | — | 19,242 | |||||||||||||||||
Adjustment for change in accounting policy | — | — | 37 | (37 | ) | — | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Balance at 1 July 2018 - restated | 31,576 | 464 | 1,880 | (14,678 | ) | — | 19,242 | |||||||||||||||||
Loss after income tax expense for the year | — | — | — | (10,270 | ) | — | (10,270 | ) | ||||||||||||||||
Other comprehensive income for the year, net of tax | — | — | (89 | ) | — | — | (89 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total comprehensive income for the year | — | — | (89 | ) | (10,270 | ) | — | (10,359 | ) | |||||||||||||||
Transactions with owners in their capacity as owners: | ||||||||||||||||||||||||
Share issue costs | (340 | ) | — | — | — | — | (340 | ) | ||||||||||||||||
Transfers | — | — | — | — | — | — | ||||||||||||||||||
Share based payment | — | — | 246 | — | — | 246 | ||||||||||||||||||
Issue of shares | 5,406 | — | — | — | — | 5,406 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Balance at 30 June 2019 | 36,642 | 464 | 2,037 | (24,948 | ) | — | 14,195 | |||||||||||||||||
Contributed equity A$’000 | Other Contributed equity A$’000 | Reserves A$’000 | Accumulated Losses A$’000 | Non- controlling Interest A$’000 | Total equity A$’000 | |||||||||||||||||||
Balance at 1 July 2019 | 36,642 | 464 | 2,037 | (24,948 | ) | — | 14,195 | |||||||||||||||||
Loss after income tax expense for the year | — | — | — | (12,467 | ) | — | (12,467 | ) | ||||||||||||||||
Other comprehensive income for the year, net of tax | — | — | (4 | ) | — | — | (4 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total comprehensive income for the year | — | — | (4 | ) | (12,467 | ) | — | (12,471 | ) | |||||||||||||||
Transactions with owners in their capacity as owners: | ||||||||||||||||||||||||
Share issue costs | (833 | ) | — | — | — | — | (833 | ) | ||||||||||||||||
Transfers | — | — | — | — | — | — | ||||||||||||||||||
Conversion of convertible note | — | — | — | — | — | — | ||||||||||||||||||
Employee share-based payment options | — | — | — | — | — | — | ||||||||||||||||||
Share based payment | — | — | 262 | — | — | 262 | ||||||||||||||||||
Issue of shares | 12,972 | — | — | — | — | 12,972 | ||||||||||||||||||
Expired options | — | — | (1,230 | ) | 1,230 | — | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Balance at 30 June 2020 | 48,781 | 464 | 1,066 | (36,186 | ) | — | 14,125 |
2021
Contributed equity A$’000 | Other Contributed equity A$’000 | Reserves A$’000 | Accumulated Losses A$’000 | Non- controlling Interest A$’000 | Total equity A$’000 | |||||||||||||||||||
Balance at 1 July 2020 | 48,781 | 464 | 1,066 | (36,186 | ) | 0— | 14,125 | |||||||||||||||||
Loss after income tax expense for the year | 0— | 0— | 0— | (8,422 | ) | 0— | (8,422 | ) | ||||||||||||||||
Other comprehensive income for the year, net of tax | 0— | 0— | 2 | 0— | 0— | 2 | ||||||||||||||||||
Total comprehensive income for the year | 0— | 0— | 2 | (8,422 | ) | 0— | (8,420 | ) | ||||||||||||||||
Transactions with owners in their capacity as owners: | ||||||||||||||||||||||||
Contributions of equity, net of transaction costs | 32,909 | 0— | 0— | 0— | 0— | 32,909 | ||||||||||||||||||
Share issue costs | (1,673 | ) | 0— | 0— | 0— | 0— | (1,673 | ) | ||||||||||||||||
Transfers | 0— | 0— | 0— | 0— | 0— | 0— | ||||||||||||||||||
Conversion of convertible note | 0— | 0— | 0— | 0— | 0— | 0— | ||||||||||||||||||
Employee share-based payment option s | 0— | 0— | 0— | 0— | 0— | 0— | ||||||||||||||||||
Share based payment | 0— | 0— | 637 | 0— | 0— | 637 | ||||||||||||||||||
Issue of shares | 273 | 0— | (80 | ) | 80 | 0— | 273 | |||||||||||||||||
Expired options | 0— | 0— | (323 | ) | 323 | 0— | 0— | |||||||||||||||||
Balance at 30 June 2021 | 80,290 | 464 | 1,301 | (44,204 | ) | 0— | 37,851 |
Note | 2020 A$’000 | 2019 A$’000 | 2018 A$’000 | |||||||||||||
Cash flows from operating activities | ||||||||||||||||
Loss before income tax expense for the year | (12,467 | ) | (10,270 | ) | (6,039 | ) | ||||||||||
Adjustments for: | ||||||||||||||||
Depreciation and amortisation | 6 | 1,084 | 1,084 | 1,547 | ||||||||||||
Net loss on disposal of non-current assets | — | — | 137 | |||||||||||||
Impairment of property, plant and equipment | — | 1 | 143 | |||||||||||||
Share-based payments | 262 | 246 | 165 | |||||||||||||
Foreign exchange differences | — | — | (251 | ) | ||||||||||||
Shares issued for no consideration | — | | — | | 30 | |||||||||||
Gain on legal settlement | — | — | (8,411 | ) | ||||||||||||
Loss/(gain) on contingent consideration | 17 | 474 | 63 | (1,461 | ) | |||||||||||
Fair value loss on financial assets | 168 | 1,809 | 3,944 | |||||||||||||
|
|
|
|
|
| |||||||||||
(10,479 | ) | (7,067 | ) | (10,196 | ) | |||||||||||
Change in operating assets and liabilities: | ||||||||||||||||
Increase in trade and other receivables | 358 | 825 | 1,724 | |||||||||||||
Increase/(decrease) in prepayments | (168 | ) | 398 | (10 | ) | |||||||||||
Increase/(decrease) in trade and other payables | 1,722 | (409 | ) | 88 | ||||||||||||
Increase/(decrease) in other provisions | 55 | (25 | ) | (58 | ) | |||||||||||
Decrease in deferred tax liability | (298 | ) | (298 | ) | (305 | ) | ||||||||||
Increase/(decrease) in accrued revenue | — | (138 | ) | 97 | ||||||||||||
|
|
|
|
|
| |||||||||||
Net cash used in operating activities | (8,810 | ) | (6,714 | ) | (8,660 | ) | ||||||||||
|
|
|
|
|
| |||||||||||
Cash flows from investing activities | ||||||||||||||||
Proceeds from legal settlement | — | — | 150 | |||||||||||||
Proceeds from disposal of shares | — | 2,359 | — | |||||||||||||
|
|
|
|
|
| |||||||||||
Net cash used in investing activities | — | 2,359 | 150 | |||||||||||||
|
|
|
|
|
| |||||||||||
Cash flows from financing activities | ||||||||||||||||
Proceeds from issue of shares | 18 | 12,139 | 3,816 | — | ||||||||||||
|
|
|
|
|
| |||||||||||
Net cash from financing activities | 12,139 | 3,816 | — | |||||||||||||
|
|
|
|
|
| |||||||||||
Net decrease in cash and cash equivalents | 3,329 | (539 | ) | (8,511 | ) | |||||||||||
Cash and cash equivalents at the beginning of the financial year | 5,434 | 5,956 | 14,455 | |||||||||||||
Effects of exchange rate changes on cash | — | 17 | 12 | |||||||||||||
|
|
|
|
|
| |||||||||||
Cash and cash equivalents at the end of the financial year | 8 | 8,764 | 5,434 | 5,956 | ||||||||||||
|
|
|
|
|
|
2021
Note | 2021 A$’000 | 2020 A$’000 | 2019 A$’000 | |||||||||||||
Cash flows from operating activities | ||||||||||||||||
Loss before income tax expense for the year | (8,422 | ) | (12,467 | ) | (10,270 | ) | ||||||||||
Adjustments for: | ||||||||||||||||
Depreciation and amortisation | 7 | 1,265 | 1,084 | 1,084 | ||||||||||||
Net loss on disposal of non-current assets | 0— | — | — | |||||||||||||
Impairment of property, plant and equipment | 0— | 0— | 1 | |||||||||||||
Share-based payments | 637 | 262 | 246 | |||||||||||||
Foreign exchange differences | 430 | 0— | 0— | |||||||||||||
Loss/(gain) on contingent consideration | 15 | 2,570 | 474 | 63 | ||||||||||||
Fair value loss on financial assets | 0— | 168 | 1,809 | |||||||||||||
(3,521 | ) | (10,479 | ) | (7,067 | ) | |||||||||||
Change in operating assets and liabilities: | ||||||||||||||||
Increase in trade and other receivables | (5,027 | ) | 358 | 825 | ||||||||||||
Increase/(decrease) in prepayments | (1,182 | ) | (168 | ) | 398 | |||||||||||
Increase/(decrease) in trade and other payables | 1,010 | 1,722 | (409 | ) | ||||||||||||
Increase/(decrease) in other provisions | 93 | 55 | (25 | ) | ||||||||||||
Decrease in deferred tax liability | �� | (484 | ) | (298 | ) | (298 | ) | |||||||||
Increase/(decrease) in accrued revenue | — | — | (138 | ) | ||||||||||||
Net cash used in operating activitie s | (9,111 | ) | (8,810 | ) | (6,714 | ) | ||||||||||
Cash flows from investing activities | ||||||||||||||||
Proceeds from disposal of shares | 0— | 0— | 2,359 | |||||||||||||
Net cash used in investing activities | 0— | 0— | 2,359 | |||||||||||||
Cash flows from financing activities | ||||||||||||||||
Proceeds from issue of shares | 17 | 28,109 | 12,139 | 3,816 | ||||||||||||
Net cash from financing activities | 28,109 | 12,139 | 3,816 | |||||||||||||
Net decrease in cash and cash equivalents | 18,998 | 3,329 | (539 | ) | ||||||||||||
Cash and cash equivalents at the beginning of the financial year | 8,764 | 5,434 | 5,956 | |||||||||||||
Effects of exchange rate changes on cash | (175 | ) | 0— | 17 | ||||||||||||
Cash and cash equivalents at the end of the financial year | 9 | 27,587 | 8,764 | 5,434 | ||||||||||||
2021
The
Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
Any significant impact on the accounting policies of the consolidated entity from the adoption of these Accounting Standards and Interpretations are disclosed below.
The following Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
IFRS 16 Leases
General impact of application of IFRS 16 Leases
IFRS 16 hasnot yet mandatory, have not been applied from 1 July 2019. The standard introduces new requirements with respect to lease accountingearly adopted by removing the distinction between operating and finance leases, requiring the recognition of a right-of-use asset and a lease liability at commencement for all leases except for short-term leases, being those less than 12 months, and leases of low-value assets.
Impact of the definition of a new lease
The change in definition of a lease mainly relates to the concept of control. IFRS 16 determines whether a contract contains a lease on the basis of whether the customer has the right to control the use of an identified asset for a period of time in exchange for consideration. The consolidated entity has applied this definition to all lease contracts currently held. The new policy is set out below.
As the consolidated entity is not party to any material leases with a term in excess of 12 months,for the adoptionannual reporting period ended 30 June 2021. The consolidated entity’s assessment of the impact of these new standard has not hador amended Accounting Standards and Interpretations is that none are deemed to have a material impact on the entity.
• | In general, clinical research in advanced cancer is relatively protected from pandemic disruption due to the ongoing and time-critical need for patient care in specialised facilities that cannot easily be repurposed; |
All resulting foreign exchange differences are recognised in other comprehensive income through the foreign currency reserve in equity.
Interpretation 23 is effective for the Group’s annual financial reporting period beginning on 1 July 2019. The Company is
2021 Current and2020Going concernThe consolidated entity incurred a loss after income tax of $12,467,466 (2019: $10,270,264), was in a net current asset position of $5,586,128 (2019: net current asset position of $5,613,883) and had net cash outflows from operating activities of $8,809,519 (2019: $6,714,210) for the year ended 30 June 2020.As at 30 June 2020 the consolidated entity had cash in hand and at bank of $8,764,044. Subsequent to year end, the consolidated entity has raised approximately A$24 million (after costs) from a fully underwritten entitlement offer to eligible shareholders.The financial statements have been prepared on a going concern basis, which contemplates continuity of normal activities and realisation of assets and settlement of liabilities in the normal course of business.The directors have considered the cash flow forecasts and the funding requirements of the business. In particular, the directors have considered the impact of COVID-19 on the operations of the Company, and make the following observations:Kazia’s key clinical trials (phase II study of paxalisib in glioblastoma and phase I study of Cantrixil in ovarian cancer) were fully recruited prior to the onset of restrictions associated with COVID-19 in the United States and Australia;The GBM AGILE study, which is planned to serve as a pivotal study for paxalisib in glioblastoma, remains on track, and initiation of recruitment continues to be expected in 2H CY2020;In general, clinical research in advanced cancer is relatively protected from pandemic disruption due to the ongoing and time-critical need for patient care in specialised facilities that cannot easily be repurposed;The Company is pre-revenue, and so changes in customer behaviour over the next several years due to public health restrictions and reduced economic activity have little to no impact on its finances;The Company was able to secure funding of approximately $9 million at the height of the initial wave of COVID-19, with additional demand from institutional investors at that time, which could not be satisfied within the Company’s placement capacity;The directors do not foresee any other impacts on the Company’s ability to raise additional funding as a result of COVID-19.The directors are confident that the recent capital raise has provided sufficient funding to allow the consolidated entity to continue as a going concern.Basis of preparationThese general purpose financial statements have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (‘AASB’) and the Corporations Act 2001, as appropriate for for-profit oriented entities. These financial statements also comply with International Financial Reporting Standards as issued by the International Accounting Standards Board (‘IASB’).The financial statements have been prepared on an accruals basis and under the historical cost conventions, except for listed equity investments which are carried at fair value.Critical accounting estimatesThe preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the consolidated entity’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 3.Parent entity informationIn accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity only. Supplementary information about the parent entity is disclosed in note 29.Notes to the financial statementsJune 30, 2020Note 2. Significant accounting policies (continued)Principles of consolidationThe consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Kazia Therapeutics Limited (‘company’ or ‘parent entity’) as at 30 June 2020 and the results of all subsidiaries for the year then ended. Kazia Therapeutics Limited and its subsidiaries together are referred to in these financial statements as the ‘consolidated entity’.Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity controls an entity when the consolidated entity is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the consolidated entity. They are de-consolidated from the date that control ceases.Intercompany transactions, balances and unrealised gains on transactions between entities in the consolidated entity are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the consolidated entity.The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest, without the loss of control, is accounted for as an equity transaction, where the difference is between the consideration transferred and the book value.Where the consolidated entity loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and non-controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. The consolidated entity recognises the fair value of the consideration received and the fair value of any investment retained together with any gain or loss in profit or loss.Operating segmentsOperating segments are presented using the ‘management approach’, where the information presented is on the same basis as the internal reports provided to the Chief Operating Decision Makers (‘CODM’). The CODM is responsible for the allocation of resources to operating segments and assessing their performance. The CODM is considered to be the Board of Directors.Foreign currency translationThe financial statements are presented in Australian dollars, which is the consolidated entity’s functional and presentation currency.Foreign currency transactionsForeign currency transactions are translated into Australian dollars using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.Foreign operationsThe assets and liabilities of foreign operations are translated into Australian dollars using the exchange rates at the reporting date. The revenues and expenses of foreign operations are translated into Australian dollars using the average exchange rates, which approximate the rate at the date of the transaction, for the period. All resulting foreign exchange differences are recognised in other comprehensive income through the foreign currency reserve in equity.The foreign currency reserve is recognised in profit or loss when the foreign operation is disposed of.Exchange differences arising on a monetary item that forms part of a reporting entity’s net investment in a foreign operation shall be recognised initially in other comprehensive income and reclassified from equity to profit or loss on disposal of the net investment.Financial InstrumentsRecognition and derecognitionFinancial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the financial instrument and are measured initially at fair value adjusted by transactions costs, except for those carried at fair value through profit or loss, which are measured initially at fair value. Subsequent measurement of financial assets and financial liabilities are described below. Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and substantially all the risks and rewards are transferred. A financial liability is derecognised when it is extinguished, discharged, cancelled or expires.Notes to the financial statementsJune 30, 2020Note 2. Significant accounting policies (continued)Classification and initial measurement of financial assetsExcept for those trade receivables that do not contain a significant financing component and are measured at the transaction price in accordance with IFRS 15, all financial assets are initially measured at fair value adjusted for transaction costs (where applicable).Subsequent measurement of financial assetsFor the purpose of subsequent measurement, financial assets are classified into the following categories upon initial recognition:financial assets at amortised costfinancial assets at fair value through profit or loss (FVPL)Classifications are determined by both:The entity’s business model for managing the financial assetThe contractual cash flow characteristics of the financial assetsAll income and expenses relating to financial assets that are recognised in profit or loss are presented within finance costs, finance income or other financial items, except for impairment of trade receivables which is presented within other expenses.Financial assets at amortised costFinancial assets are measured at amortised cost if the assets meet the following conditions (and are not designated as FVPL):they are held within a business model whose objective is to hold the financial assets and collect its contractual cash flowsthe contractual terms of the financial assets give rise to cash flows that are solely payments of principal and interest on the principal amount outstandingAfter initial recognition, these are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial. The Group’s cash and cash equivalents, trade and most other receivables fall into this category of financial instruments.Financial assets at fair value through profit or loss (FVPL)Financial assets that are held within a business model other than ‘hold to collect’ or ‘hold to collect and sell’ are categorised at fair value through profit and loss. Further, irrespective of business model, financial assets whose contractual cash flows are not solely payments of principal and interest are accounted for at FVPL. The Group’s investments in equity instruments and derivatives fall under this category.Impairment of financial assetsIFRS 9’s new impairment model uses more forward looking information to recognize expected credit losses - the ‘expected credit losses (ECL) model’. The application of the new impairment model depends on whether there has been a significant increase in credit risk. The Group considers a broader range of information when assessing credit risk and measuring expected credit losses, including past events, current conditions, reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.In applying this forward-looking approach, a distinction is made between:financial instruments that have not deteriorated significantly in credit quality since initial recognition or that have low credit risk (‘Stage 1’) andfinancial instruments that have deteriorated significantly in credit quality since initial recognition and whose credit risk is not low (‘Stage 2’).‘Stage 3’ would cover financial assets that have objective evidence of impairment at the reporting date. ‘12-month expected credit losses’ are recognised for the first category while ‘lifetime expected credit losses’ are recognised for the second category. Measurement of the expected credit losses is determined by a probability-weighted estimate of credit losses over the expected life of the financial instrument.Classification and measurement of financial liabilitiesThe Group’s financial liabilities comprise trade and other payables. Financial liabilities are initially measured at fair value, and, where applicable, adjusted for transaction costs unless the Group designated a financial liability at fair value through profit or loss. Subsequently, financial liabilities are measured at amortised cost using the effective interest method.Notes to the financial statementsJune 30, 2020Note 2. Significant accounting policies (continued)All interest-related charges and, if applicable, changes in an instrument’s fair value that are reported in profit or loss are included within finance costs or finance income. Revenue from contracts with customersThe Group does not earn revenue from contracts with customers.Finance IncomeInterest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset.Grant incomeThe R&D Tax Incentive is a government program which helps to offset some of the incurred costs of R&D. Eligible expenditure incurred under the scheme in a financial year attracts an additional 43.5% tax deduction, and for a group earning income of less than $20 million, the cash value of the additional deduction is remitted to the taxpayer. In accordance with AASB 120, as the compensation relates to expenses already incurred, it is recognised in profit or loss of the period in which it becomes receivable. Accordingly the group accounts for the R&D Tax Incentive in the same year as the expenses to which it relates.Other revenueOther revenue is recognised when it is received or when the right to receive payment is established.Income taxThe income tax expense or benefit for the period is the tax payable on that period’s taxable income based on the applicable income tax rate for each jurisdiction, adjusted by changes in deferred tax assets and liabilities attributable to temporary differences, unused tax losses and the adjustment recognised for prior periods, where applicable.Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to apply when the assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted, except for:When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting nor taxable profits; orWhen the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and the timing of the reversal can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future.Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.The carrying amount of recognised and unrecognised deferred tax assets are reviewed each reporting date. Deferred tax assets recognised are reduced to the extent that it is no longer probable that future taxable profits will be available for the carrying amount to be recovered. Previously unrecognised deferred tax assets are recognised to the extent that it is probable that there are future taxable profits available to recover the asset.Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable authority on either the same taxable entity or different taxable entities which intend to settle simultaneously.Kazia Therapeutics Limited (the ‘parent entity’) and its wholly-owned Australian controlled entities have formed an income tax consolidated group under the tax consolidation regime. Kazia Therapeutics Limited as the parent entity discloses all of the deferred tax assets of the tax consolidated group in relation to tax losses carried forward (after elimination of inter-group transactions). The tax consolidated group has applied the ‘separate taxpayer in the group’ allocation approach in determining the appropriate amount of taxes to allocate to members of the tax consolidated group.As the tax consolidation group continues to generate tax losses there has been no reason for the company to enter a tax funding agreement with members of the tax consolidation group.Interpretation 23 Uncertain tax positionsInterpretation 23 clarified the application of the recognition and measurement criteria in IAS 12 Income Taxes (IAS 12) where there is uncertainty over income tax treatments and requires an assessment of each uncertain tax position as to whether it is probable that a taxation authority will accept the position. Where it is not probable, the effect of the uncertainty is reflected in determining the relevant taxable profit or loss, tax bases, unused tax losses and unused tax credits or tax rates. The amount is determined as either the single most likely amount or the sum of the probability weighted amounts in a range of possible outcomes, whichever better predicts the resolution of the uncertainty. Judgments are reassessed as and when new facts and circumstances are presented.Notes to the financial statementsJune 30, 2020Note 2. Significant accounting policies (continued)Assets.assets. This replaces the previous requirement to recognise a provision for onerous lease contracts.16.16 Leases. This expense is presented within other expenses in the consolidated statement of profit or loss.Patents Amortisation expense is included in research and trademarksSignificant costs associated with patents and intellectual property are deferred and amortised on a straight-line basis over the perioddevelopment expenditure.
2021 paxalisib2020GDC-0084
Notes to the financial statements
June 30, 2020
Note 2. Significant accounting policies (continued)
Notes to the financial statements
June 30, 2020
Note 2. Significant accounting policies (continued)
New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not been early adopted by the consolidated entity for the annual reporting period ended 30 June 2020. The consolidated entity’s assessment of the impact of these new or amended Accounting Standards and Interpretations is that none are deemed to have a material impact on the entity.
Estimates have been used in determining the expense liability
Notestrials often bears little relation to the financial statements
June 30, 2020
Note 3. Critical accounting judgements,timing of the work effort. Detailed estimates and assumptions (continued)
are made to determine the amount of work effort expended during a reporting period in order to determine the appropriate expense to be recognised, with the resulting prepayments or
Fair value measurement hierarchy
Research and development tax rebate
The R&D Tax Incentive is recognised when a reliable estimate of the amounts receivable can be made. For the year ended 30 June 2020 the group has estimated the rebate which will be received in early 2021 and has accrued that amount as income in the statement of profit or loss andunless other comprehensive income.
factors over-ride this assessment.
The
Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary differences only if the consolidated entity considers it is probable that future taxable amounts will be available to utilise those temporary differences and losses. There have been no deferred tax assets recognised in the financial statements.
Business combinations
The consolidated entity entered into a business combination in a prior year. The transaction was complex, involving the licensing of an asset from one party and the purchase of a company from another party. Significant judgement was required in determining that the transaction was a business combination and in relation to the identification and valuation of assets and liabilities acquired.
Contingent consideration
The fair value of contingent consideration is dependent on the key assumptions including probability of milestones occurring, timing of settlement and discount rates.
determined
Consolidated | ||||||||||||
2021 A$’000 | 2020 A$’000 | 2019 A$’000 | ||||||||||
Licensing revenue | 15,183 | 0— | 0— | |||||||||
Consolidated | ||||||||||||
2021 A$’000 | 2020 A$’000 | 2019 A$’000 | ||||||||||
Geographical regions | ||||||||||||
China | 10,006 | 0— | 0— | |||||||||
Sweden | 5,177 | 0— | 0— | |||||||||
15,183 | 0— | 0— | ||||||||||
Timing of revenue recognition | ||||||||||||
Licensing revenue at a point in time | 15,183 | 0— | 0— | |||||||||
2021
Consolidated | ||||||||||||
2020 A$’000 | 2019 A$’000 | 2018 A$’000 | ||||||||||
Net foreign exchange gain | 5 | — | 224 | |||||||||
Payroll tax rebate | 2 | — | — | |||||||||
Subsidies and grants | 20 | 9 | 685 | |||||||||
Gain on legal settlement | — | — | 8,411 | |||||||||
Reimbursement of expenses | — | 25 | 8 | |||||||||
Research and development rebate | 968 | 1,431 | 2,200 | |||||||||
Other sundry income | — | — | 1,461 | |||||||||
|
|
|
|
|
| |||||||
Other income | 995 | 1,465 | 12,989 | |||||||||
|
|
|
|
|
|
Consolidated | ||||||||||||
2021 A$’000 | 2020 A$’000 | 2019 A$’000 | ||||||||||
Net foreign exchange gain | 0— | 5 | 0— | |||||||||
Payroll tax rebate | 2 | 2 | 0— | |||||||||
Subsidies and grants | 0— | 20 | 9 | |||||||||
Reimbursement of expenses | 0— | 0— | 25 | |||||||||
Research and development rebate | 0— | 968 | 1,431 | |||||||||
Other income | 2 | 995 | 1,465 | |||||||||
Consolidated | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
A$’000 | A$’000 | A$’000 | ||||||||||
Loss before income tax includes the following specific | ||||||||||||
Depreciation | ||||||||||||
Leasehold improvements | — | — | 192 | |||||||||
Property, plant and equipment | — | — | 19 | |||||||||
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|
|
|
|
| |||||||
Total depreciation | — | — | 211 | |||||||||
|
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|
|
|
| |||||||
Amortisation | ||||||||||||
Patents and intellectual property | — | — | 250 | |||||||||
Software | — | — | 2 | |||||||||
GDC licensing agreement | 1,084 | 1,084 | 1,084 | |||||||||
|
|
|
|
|
| |||||||
Total amortisation | 1,084 | 1,084 | 1,336 | |||||||||
|
|
|
|
|
| |||||||
Total depreciation and amortisation | 1,084 | 1,084 | 1,547 | |||||||||
|
|
|
|
|
| |||||||
Impairment | ||||||||||||
Leasehold Improvements | — | — | 143 | |||||||||
Rental expense relating to operating leases | ||||||||||||
Minimum lease payments | 108 | 79 | 301 | |||||||||
Superannuation expense | ||||||||||||
Defined contribution superannuation expense | 140 | 128 | 170 | |||||||||
Employee benefits expense excluding superannuation | ||||||||||||
Employee benefits expense excluding superannuation | 1,526 | 1,396 | 2,213 | |||||||||
Other Expenses | ||||||||||||
Revaluation of contingent consideration | 475 | 63 | — |
Consolidated | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
A$’000 | A$’000 | A$’000 | ||||||||||
Loss before income tax includes the following specific | ||||||||||||
Amortisation | ||||||||||||
Paxalisib licensing agreement | 1,084 | 1,084 | 1,084 | |||||||||
Evotech licensing agreement | 181 | — | — | |||||||||
Total amortisation | 1,265 | 1,084 | 1,084 | |||||||||
Net foreign exchange loss | ||||||||||||
Net foreign exchange loss | 430 | — | 18 | |||||||||
Rental expense relating to operating leases | ||||||||||||
Minimum lease payments | 93 | 108 | 79 | |||||||||
Superannuation expense | ||||||||||||
Defined contribution superannuation expense | 138 | 140 | 128 | |||||||||
Employee benefits expense excluding superannuation | ||||||||||||
Employee benefits expense excluding superannuation | 1,563 | 1,526 | 1,396 | |||||||||
Other Expenses | ||||||||||||
Chinese With-Holding Tax incurred on license transaction | 931 | — | — | |||||||||
Chinese Value Added Tax incurred on license transaction | 538 | — | — | |||||||||
1,469 | — | — | ||||||||||
2021
2020 | 2019 | 2018 | ||||||||||
A$’000 | A$’000 | A$’000 | ||||||||||
Numerical reconciliation of income tax benefit and tax at the statutory rate | ||||||||||||
Loss before income tax benefit | (12,765 | ) | (10,568 | ) | (6,344 | ) | ||||||
Tax at the statutory tax rate of 27.5% | (3,511 | ) | (2,906 | ) | (1,745 | ) | ||||||
Tax effect amounts which are not deductible/(taxable) in calculating taxable income: | — | — | — | |||||||||
Impact of foreign tax rate differential | ||||||||||||
Research and Development claim | 280 | 394 | 605 | |||||||||
Capitalised expenses | — | — | — | |||||||||
Employee option plan | 72 | 67 | 45 | |||||||||
Gain/loss on revaluation of contingent consideration | 131 | 17 | (401 | ) | ||||||||
Other non-deductible expenses | — | — | — | |||||||||
(3,028 | ) | (2,428 | ) | (1,496 | ) | |||||||
|
|
|
|
|
| |||||||
Prior year tax losses not recognised now recouped | — | — | — | |||||||||
Tax losses and timing differences not recognised | 2,730 | 2,130 | 1,191 | |||||||||
|
|
|
|
|
| |||||||
Income tax benefit | (298 | ) | (298 | ) | (305 | ) | ||||||
|
|
|
|
|
| |||||||
2020 | 2019 | 2018 | ||||||||||
A$’000 | A$’000 | A$’000 | ||||||||||
Tax losses not recognised | ||||||||||||
Unused tax losses for which no deferred tax asset has been recognised-Australia | 67,430 | 57,050 | 50,331 | |||||||||
Potential tax benefit @ 27.5% - Australia | 18,543 | 15,689 | 13,841 | |||||||||
Unused tax losses for which no deferred tax asset has been recognised-US | 1,570 | 2,366 | 2,525 | |||||||||
Potential tax benefit at statutory tax rates@21%-US | 330 | 497 | 530 |
2021 | 2020 | 2019 | ||||||||||
A$’000 | A$’000 | A$’000 | ||||||||||
Numerical reconciliation of income tax benefit and tax at the statutory rate | ||||||||||||
Loss before income tax benefi t | (8,906 | ) | (12,765 | ) | (10,568 | ) | ||||||
Tax at the statutory tax rate of 26% (2020 & 2019 27.5%) | (2,316 | ) | (3,511 | ) | (2,906 | ) | ||||||
Tax effect amounts which are not deductible/(taxable) in calculating taxable income: | ||||||||||||
Research and Development claim | — | 280 | 394 | |||||||||
Amortisation of intangibles | 348 | 298 | — | |||||||||
Employee option plan | 175 | 72 | 67 | |||||||||
Gain/loss on revaluation of contingent consideration | 707 | 131 | 17 | |||||||||
(1,086 | ) | (2,730 | ) | (2,428 | ) | |||||||
Adjustment to deferred tax balances as a result of change in statutory tax rate | (186 | ) | — | — | ||||||||
Tax losses and timing differences not recognised | 788 | 2,432 | 2,130 | |||||||||
Income tax benefit | (484 | ) | (298 | ) | (298 | ) | ||||||
2021 | 2020 | 2019 | ||||||||||
A$’000 | A$’000 | A$’000 | ||||||||||
Tax losses not recognised | ||||||||||||
Unused tax losses for which no deferred tax asset has been recognised-Australia | 70,896 | 67,430 | 57,050 | |||||||||
Potential tax benefit @ 26.0% (2020 27.5%)- Australia | 18,433 | 17,531 | 15,689 | |||||||||
Unused tax losses for which no deferred tax asset has been recognised-US | 2,038 | 1,570 | 2,366 | |||||||||
Potential tax benefit at statutory tax rates@21%-US | 428 | 330 | 497 |
2020 | 2019 | |||||||
A$’000 | A$’000 | |||||||
Cash at bank and on hand | 1,264 | 834 | ||||||
Short-term deposits | 7,500 | 4,600 | ||||||
|
|
|
| |||||
8,764 | 5,434 | |||||||
|
|
|
|
2021 | 2020 | |||||||
A$’000 | A$’000 | |||||||
Cash at bank and on hand | 21,087 | 1,264 | ||||||
Short-term deposits | 6,500 | 7,500 | ||||||
27,587 | 8,764 | |||||||
2020 | 2019 | |||||||
A$’000 | A$’000 | |||||||
Trade receivables | — | 17 | ||||||
Less: Provision for impairment of receivables | — | (17 | ) | |||||
R&D tax rebate receivable | 1,017 | 1,440 | ||||||
|
|
|
| |||||
1,017 | 1,440 | |||||||
|
|
|
| |||||
Other receivables | 177 | 112 | ||||||
Deposits held | 567 | 564 | ||||||
Less: Provision for impairment of deposits held | (409 | ) | (405 | ) | ||||
|
|
|
| |||||
1,352 | 1,711 | |||||||
|
|
|
|
Deposits held included a guarantee to the value
2021 | 2020 | |||||||
A$’000 | A$’000 | |||||||
Current assets | ||||||||
R&D tax rebate receivable | — | 1,017 | ||||||
— | 1,017 | |||||||
Other receivables | 76 | 177 | ||||||
Deposits held | 8 | 567 | ||||||
Less: Provision for impairment of deposits held | — | (409 | ) | |||||
84 | 1,352 | |||||||
Non-current assets | ||||||||
Deposit paid | 6,694 | |||||||
6,778 | 1,352 | |||||||
2021 Prepayments end. Listed ordinary shares - FVTPL Unlisted shares and options - FVTPL Patents and intellectual property - at cost Less: Accumulated amortisation Licensing agreement - at acquired fair value Less: Accumulated amortisation Paxalisib licensing agreement A$’000 Total A$’000 Balance at 1 July 2018 Additions Disposals Amortisation expense Balance at 30 June 2019 Amortisation expense Balance at 30 June 2020 2021 Trade payables Accrued payables Other current liability Employee benefits Employee benefits Deferred tax liability associated with Licensing Agreement Amount expected to be settled within 12 months Amount expected to be settled after more than 12 months 2020 A$’000 2019 A$’000 Contingent consideration paxalisib Milestone 2 comprises shares to the value of $1,250,000.20209. Current assets - trade10. Trade and other receivables (continued)Allowance forcredit lossesThe consolidated entity has recognised a loss of nil (2019:A$16,767) in profit or loss in respect of impairment of receivables (excluding ‘deposits held’) for theto be over 12 months from year ended 30 June 2020.Note 10. Current assets - other 2020 2019 A$’000 A$’000 537 370 Non-currentOther assets - Financial 2020 2019 A$’000 A$’000 — 25 — 143 — 168 Refer to note 23 for further information on fair value measurement. 1,720 537 - intangibles Consolidated 2020 2019 A$’000 A$’000 2,851 2,851 (2,851 ) (2,851 ) — — 16,408 16,408 (3,997 ) (2,914 ) 12,410 13,494 12,410 13,494 16,408 16,408 (5,082 ) (3,998 ) 11,326 12,410 10,858 — (181 ) — 10,677 12,410 22,003 12,410 14,579 14,579 (1,084 ) (1,084 ) 13,494 13,494 (1,084 ) (1,084 ) 12,410 12,410 — 13,494 13,494 — (1,084 ) (1,084 ) — 12,410 12,410 10,858 10,858 (181 ) (1,084 ) (1,265 ) 10,677 11,326 22,003 2020Current liabilities - tradeTrade and other payables 2020 2019 A$’000 A$’000 1,694 1,050 1,795 714 — — 3,489 1,764 1,893 1,694 3,040 1,795 4,933 3,489 2221 for further information on financial instruments.NoteCurrent liabilities - provisions 2020 2019 A$’000 A$’000 191 136 191 136 229 191 55 — 284 191 Current liabilitiesContingent consideration — 1,387 3,165 — 3,165 1,387 1,015 458 7,911 — 8,927 458 12,091 1,845 Contingent consideration2020A$’0002019A$’000Contingent consideration 1,387— Note 16. Non-current liabilities - deferred tax 2020 2019 A$’000 A$’000 3,413 3,711 298 298 3,115 3,413 3,413 3,711 Note 17. Non-current liabilities - Contingent consideration 458 1,370 458 1,370 Notes to the financial statementsJune 30, 2020Note 17. Non-current liabilities - Contingent consideration (continued)four4 contingent milestone payments, the first two milestone payments are to be settled with Kazia shares, and the third and fourth milestone payments are to be settled with either cash or Kazia shares at the discretion of Kazia. MilestoneMilestones 1 hasand 4 have now been paid out, and Milestone 3 has lapsed.Agreementagreement comprises of one1 milestone payment payable on the first commercial licensed product sale.The rangesale, in the amount of outcomes$1,394,000.
Milestone | Contingent Consideration | |||||||
Milestone 2 | 1,250,000 | 1,250,000 | ||||||
Milestone 4 | 4,199,000 | 3,400,000 | ||||||
Milestone 5 | 1,394,000 | 1,394,000 | ||||||
|
|
|
| |||||
Total | 6,843,000 | 6,044,000 | ||||||
|
|
|
|
been revised downwards.
agreement.
2021 | 2020 | |||||||
A$’000 | A$’000 | |||||||
Non-current Liabilities | ||||||||
Deferred tax liability associated with Licensing Agreement | 2,928 | 3,413 | ||||||
Consolidated | ||||||||||||||||
2020 Shares | 2019 Shares | 2020 $ | 2019 $ | |||||||||||||
Ordinary shares - fully paid | 94,598,369 | 62,166,673 | 48,781,214 | 36,641,519 | ||||||||||||
|
|
|
|
|
|
|
|
Consolidated | ||||||||||||||||
2021 Shares | 2020 Shares | 2021 $ | 2020 $ | |||||||||||||
Ordinary shares - fully paid | 132,012,209 | 94,598,369 | 80,290,062 | 48,781,214 | ||||||||||||
Details | Date | Shares | Issue price | $ | ||||||||||
Balance | 1 July 2018 | 48,409,621 | 31,575,824 | |||||||||||
Share placement | 24 October 2018 | 8,900,001 | $ | 0.380 | 3,382,000 | |||||||||
Milestone 1 shares issued in connection with purchase of Glioblast Pty Limited (GDC-0084) | 9 November 2018 | 2,820,824 | $ | 0.440 | 1,250,000 | |||||||||
Issued under Share Purchase Plan | 23 November 2018 | 2,036,227 | $ | 0.380 | 773,760 | |||||||||
Share issue transaction costs | — | $ | 0.000 | (340,065 | ) | |||||||||
|
|
|
| |||||||||||
Balance | 30 June 2019 | 62,166,673 | 36,641,519 | |||||||||||
Share placement | 1 November 2019 | 10,000,000 | $ | 0.400 | 4,000,000 | |||||||||
Share placement | 16 April 2020 | 18,041,667 | $ | 0.400 | 7,216,667 | |||||||||
Issued under the Share Purchase Plan | 11 May 2020 | 4,390,010 | $ | 0.400 | 1,756,004 | |||||||||
Issued on conversion of options | 19 | $ | 4.000 | 76 | ||||||||||
Share issue transaction costs | — | $ | 0.000 | (833,052 | ) | |||||||||
|
|
|
| |||||||||||
Balance | 30 June 2020 | 94,598,369 | 48,781,214 | |||||||||||
|
|
|
|
Details | Date | Shares | Issue price | $ | ||||||||||
Balance | 1 July 2019 | 62,166,673 | 36,641,519 | |||||||||||
Share placement | 1 November 2019 | 10,000,000 | $ | 0.400 | 4,000,000 | |||||||||
Share placement | 16 April 2020 | 18,041,667 | $ | 0.400 | 7,216,667 | |||||||||
Issued under the Share Purchase Plan | 11 May 2020 | 4,390,010 | $ | 0.400 | 1,756,004 | |||||||||
Issued on conversion of options | 19 | $ | 4.000 | 76 | ||||||||||
Share issue transaction costs | — | $ | 0.000 | (833,052 | ) | |||||||||
Balance | 30 June 2020 | 94,598,369 | 48,781,214 | |||||||||||
Issued on conversion of options | 28 August 2020 | 25,000 | $ | 0.493 | 12,313 | |||||||||
Institutional placement under ANREO | 12 October 2020 | 20,525,820 | $ | 0.800 | 16,420,656 | |||||||||
Retail placement under ANREO | 26 October 2020 | 11,017,075 | $ | 0.800 | 8,813,660 | |||||||||
Issued on conversion of options | 2 March 2021 | 391,500 | $ | 0.635 | 248,661 | |||||||||
Issued on conversion of options | 15 March 2021 | 25,000 | $ | 0.493 | 12,313 | |||||||||
Share placement | 28 April 2021 | 3,037,580 | $ | 1.407 | 4,274,633 | |||||||||
Issued on achievement of a milestone | 21 May 2021 | 2,391,865 | $ | 1.421 | 3,400,000 | |||||||||
Less: share issue transaction costs | — | $ | 0.000 | (1,673,388 | ) | |||||||||
Balance | 30 June 2021 | 132,012,209 | 80,290,062 | |||||||||||
Notes to the financial statements
June 30, 2020
Note 18. Equity - contributed equity (continued)
2019 | 2018 | |||||||
$ | $ | |||||||
Convertible note - Triaxial | 464,000 | 464,000 | ||||||
|
|
|
|
2021 | 2020 | |||||||
$ | $ | |||||||
Convertible note - Triaxial | 464,000 | 464,000 | ||||||
Notes to the financial statements
June 30, 2020
Equity - dividends (continued)Franking creditsThere were no franking credits available at the reporting date.Note 22. Financial instruments
Assets | Liabilities | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
A$’000 | A$’000 | A$’000 | A$’000 | |||||||||||||
US dollars | 272 | 31 | 2,196 | 1,046 | ||||||||||||
Euros | — | — | — | 1 | ||||||||||||
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|
|
|
|
| |||||||||
272 | 31 | 2,196 | 1,047 | |||||||||||||
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|
Assets | Liabilities | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
A$’000 | A$’000 | A$’000 | A$’000 | |||||||||||||
US dollars | 21,073 | 272 | 3,448 | 2,196 | ||||||||||||
Euros | — | — | 16 | 0 | ||||||||||||
21,073 | 272 | 3,464 | 2,196 | |||||||||||||
Notes to the financial statements
June 30, 2020
Note 22. Financial instruments (continued)
AUD strengthened | AUD weakened | |||||||||||||||||||||||
Consolidated - 2020 | % change | Effect on A$’000 | Effect on equity A$’000 | % change | Effect on A$’000 | Effect on equity A$’000 | ||||||||||||||||||
US dollars | 10 | % | 245 | 245 | (10 | %) | (245 | ) | (245 | ) | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
245 | 245 | (245 | ) | (245 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
AUD strengthened | AUD weakened | |||||||||||||||||||||||
Consolidated - 2019 | % change | Effect on A$’000 | Effect on equity A$’000 | % change | Effect on A$’000 | Effect on equity A$’000 | ||||||||||||||||||
US dollars | 10 | % | 102 | 102 | (10 | %) | (102 | ) | (102 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
AUD strengthened | AUD weakened | |||||||||||||||||||||||
Consolidated - 2021 | % change | Effect on profit before tax A$’000 | Effect on equity A$’000 | % change | Effect on profit before tax A$’000 | Effect on equity A$’000 | ||||||||||||||||||
US dollars | 10 | % | (1,762 | ) | (1,762 | ) | (10 | %) | 1,762 | 1,762 | ||||||||||||||
Euros | 10 | % | 1 | 1 | (10 | %) | (1 | ) | (1 | ) | ||||||||||||||
(1,761 | ) | (1,761 | ) | 1,761 | 1,761 | |||||||||||||||||||
AUD strengthened | AUD weakened | |||||||||||||||||||||||
Consolidated - 2020 | % change | Effect on profit before tax A$’000 | Effect on equity A$’000 | % change | Effect on profit before tax A$’000 | Effect on equity A$’000 | ||||||||||||||||||
US dollars | 10 | % | 192 | 192 | (10 | %) | (192 | ) | (192 | ) | ||||||||||||||
2020 | 2019 | |||||||||||||||
Weighted average interest rate % | Balance A$’000 | Weighted average interest rate % | Balance A$’000 | |||||||||||||
Cash at bank and in hand | 0.04 | % | 1,264 | 0.03 | % | 834 | ||||||||||
Short term deposits | 0.95 | % | 7,500 | 1.88 | % | 4,600 | ||||||||||
|
|
|
| |||||||||||||
Net exposure to cash flow interest rate risk | 8,764 | 5,434 | ||||||||||||||
|
|
|
|
2021 | 2020 | |||||||||||||||
Weighted average interest rate % | Balance A$’000 | Weighted average interest rate % | Balance A$’000 | |||||||||||||
Cash at bank and in hand | 0.00 | % | 21,087 | 0.04 | % | 1,264 | ||||||||||
Short term deposits | 0.04 | % | 6,500 | 0.95 | % | 7,500 | ||||||||||
Net exposure to cash flow interest rate risk | 27,587 | 8,764 | ||||||||||||||
Notes to the financial statements
June 30, 2020
Note 22. Financial instruments (continued)
2020 | Weighted average % | 1 year or less A$’000 | Between 1 and 2 years A$’000 | Between 2 and 5 years A$’000 | Over 5 years A$’000 | Remaining contractual maturities A$’000 | ||||||||||||||||||
Non-derivatives | ||||||||||||||||||||||||
Non-interest bearing | ||||||||||||||||||||||||
Trade payables | — | 1,694 | — | — | — | 1,694 | ||||||||||||||||||
Accrued payables | — | 1,795 | — | — | — | 1,795 | ||||||||||||||||||
Contingent consideration | — | 4,199 | — | 2,644 | — | 6,843 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total non-derivatives | 7,688 | — | 2,644 | — | 10,332 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
2019 | Weighted average interest rate % | 1 year or less A$’000 | Between 1 and 2 years A$’000 | Between 2 and 5 years A$’000 | Over 5 years A$’000 | Remaining contractual maturities A$’000 | ||||||||||||||||||
Non-derivatives | ||||||||||||||||||||||||
Non-interest bearing | ||||||||||||||||||||||||
Trade payables | — | 1,049 | — | — | — | 1,049 | ||||||||||||||||||
Accrued payables | — | 714 | — | — | — | 714 | ||||||||||||||||||
Contingent consideration | — | — | — | 5,194 | 1,394 | 6,588 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total non-derivatives | 1,763 | — | 5,194 | 1,394 | 8,351 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
2021 | Weighted average interest rate % | 1 year or less A$’000 | Between 1 and 2 years A$’000 | Between 2 and 5 years A$’000 | Over 5 years A$’000 | Remaining contractual maturities A$’000 | ||||||||||||||||||
Non-derivatives | ||||||||||||||||||||||||
Non-interest bearing | ||||||||||||||||||||||||
Trade payables | — | 1,893 | — | — | — | 1,893 | ||||||||||||||||||
Accrued payables | — | 3,039 | — | — | — | 3,039 | ||||||||||||||||||
Contingent consideration | — | 3,165 | — | 9,306 | — | 12,471 | ||||||||||||||||||
Total non-derivatives | 8,097 | — | 9,306 | — | 17,403 | |||||||||||||||||||
2020 | Weighted average interest rate % | 1 year or less A$’000 | Between 1 and 2 years A$’000 | Between 2 and 5 years A$’000 | Over 5 years A$’000 | Remaining contractual maturities A$’000 | ||||||||||||||||||
Non-derivatives | ||||||||||||||||||||||||
Non-interest bearing | ||||||||||||||||||||||||
Trade payables | — | 1,694 | — | — | — | 1,694 | ||||||||||||||||||
Accrued payables | — | 1,795 | — | — | — | 1,795 | ||||||||||||||||||
Contingent consideration | — | 4,199 | — | — | 4,199 | |||||||||||||||||||
Total non-derivatives | 3,489 | 4,199 | — | — | 7,688 | |||||||||||||||||||
Notes to the financial statements
June 30, 2020
Note 23. Fair value measurement (continued)
Consolidated - 2020 | Level 1 A$’000 | Level 2 A$’000 | Level 3 A$’000 | Total A$’000 | ||||||||||||
Liabilities | ||||||||||||||||
Contingent Consideration | — | — | 1,845 | 1,845 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total liabilities | — | — | 1,845 | 1,845 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Consolidated - 2019 | Level 1 A$’000 | Level 2 A$’000 | Level 3 A$’000 | Total A$’000 | ||||||||||||
Assets | ||||||||||||||||
Ordinary shares - listed | 25 | — | — | 25 | ||||||||||||
Contingent Consideration | — | — | 143 | 143 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Assets | 25 | — | 143 | 168 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Liabilities | ||||||||||||||||
Contingent Consideration | — | — | 1,370 | 1,370 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total liabilities | — | — | 1,370 | 1,370 | ||||||||||||
|
|
|
|
|
|
|
|
Consolidated - 2021 | Level 1 A$’000 | Level 2 A$’000 | Level 3 A$’000 | Total A$’000 | ||||||||||||
Liabilities | ||||||||||||||||
Contingent Consideration | — | — | 1,015 | 1,015 | ||||||||||||
Total liabilities | — | — | 1,015 | 1,015 | ||||||||||||
Consolidated - 2020 | ||||||||||||||||
Liabilities | ||||||||||||||||
Contingent Consideration | — | — | 1,845 | 1,845 | ||||||||||||
Total liabilities | — | — | 1,845 | 1,845 | ||||||||||||
Level 3 A$’000 | Available for sale A$’000 | Total A$’000 | ||||||||||
Consolidate d | ||||||||||||
Balance at 1 July 2019 | 1,370 | 1,370 | ||||||||||
Losses recognised in profit or loss | 475 | 0 | 475 | |||||||||
Balance at 30 June 2020 | 1,845 | 1,845 | ||||||||||
Losses recognised in profit or loss | 2,570 | 2,570 | ||||||||||
Payout of milestone | (3,400 | ) | (3,400 | ) | ||||||||
Balance at 30 June 2021 | 1,015 | 0 | 1,015 | |||||||||
2020 A$’000 | 2019 A$’000 | 2018 A$’000 | ||||||||||
Short-term employee benefits | 1,324 | 1,176 | 1,636 | |||||||||
Post-employment benefits | 97 | 84 | 90 | |||||||||
Share-based payments | 230 | 125 | 117 | |||||||||
|
|
|
|
|
| |||||||
1,651 | 1,385 | 1,843 | ||||||||||
|
|
|
|
|
|
2021 A$’000 | 2020 A$’000 | 2019 A$’000 | ||||||||||
Short-term employee benefits | 1,574 | 1,324 | 1,176 | |||||||||
Post-employment benefits | 112 | 97 | 84 | |||||||||
Share-based payments | 617 | 230 | 125 | |||||||||
2,303 | 1,651 | 1,385 | ||||||||||
Consolidated | ||||||||||||
2020 A$’000 | 2019 A$’000 | 2018 A$’000 | ||||||||||
Audit services - Grant Thornton Audit Pty Ltd | ||||||||||||
Audit or review of the financial statements | 124 | 120 | 131 | |||||||||
F3 consent | — | — | 11 | |||||||||
|
|
|
|
|
| |||||||
124 | 120 | 142 | ||||||||||
|
|
|
|
|
|
Notes to
Consolidated | ||||||||||||
2021 A$’000 | 2020 A$’000 | 2019 A$’000 | ||||||||||
Audit services - Grant Thornton Audit Pty Ltd | ||||||||||||
Audit or review of the financial statements | 151 | 124 | 120 | |||||||||
151 | 124 | 120 | ||||||||||
June 30, 2020
contingent consideration set out in note 15, the consolidated entity does not have any other contingent liabilities.
The consolidated entity is continuing to prosecute its Intellectual Property (‘IP’) rights against an Austrian company, APOtrend. At 30 June 2018 the Austrian Supreme Court has rendered a final decision on the patent infringement. As a result, Kazia is entitled to make a claim against APOtrend in relation to two of the three products which were the subject of the claim, while for the third product, Kazia’s claim was denied. In respect of this third product, APOtrend is entitled to claim compensation for damages caused by a preliminary injunction. At the date of this report, no claim has been made by either party. Kazia is entitled to access APOtrend’s books to calculate a license fee/other payment claims against APOtrend. Kazia is currently trying to enforce this right in court.
The consolidated entity has provided a guarantee to the value of €250,000 (A$409,098) with the court to provide a security for potential damage claims raised by APOtrend (which is not limited to this amount, however). As at 30 June 2020, the receivable balance continues to be fully impaired on the basis that it is unlikely to be recovered.
Note 27. Commitments
end.
29.
2021
Parent | ||||||||
2021 A$’000 | 2020 A$’000 | |||||||
Statement of profit or loss and other comprehensive income | ||||||||
Loss after income tax | (16,854 | ) | (11,064 | ) | ||||
Total comprehensive income | (16,854 | ) | (11,064 | ) | ||||
2021 A$’000 | 2020 A$’000 | |||||||
Statement of financial position | ||||||||
Total current asset s | 25,042 | 9,703 | ||||||
Total assets | 47,044 | 22,113 | ||||||
Total current liabilities | 3,177 | 1,522 | ||||||
Total liabilities | 15,032 | 5,393 | ||||||
Equity | ||||||||
Contributed equity | 80,290 | 48,781 | ||||||
Other contributed equity | 464 | 464 | ||||||
Reserves | 1,754 | 1,521 | ||||||
Accumulated losses | (50,496 | ) | (34,046 | ) | ||||
Total equity | 32,012 | 16,720 | ||||||
Note 15. The contingent consideration is specific to the parent entity.
2020.
Note 29. Parent entity information
Set out below is the supplementary information about the parent entity.
Parent | ||||||||
2020 A$’000 | 2019 A$’000 | |||||||
Statement of profit or loss and other comprehensive income | ||||||||
Loss after income tax | (11,064 | ) | (7,198 | ) | ||||
|
|
|
| |||||
Total comprehensive income | (11,064 | ) | (7,198 | ) | ||||
|
|
|
| |||||
2020 A$’000 | 2019 A$’000 | |||||||
Statement of financial position | ||||||||
Total current assets | 9,703 | 7,015 | ||||||
Total assets | 22,113 | 20,677 | ||||||
Total current liabilities | 1,522 | 213 | ||||||
Total liabilities | 5,393 | 5,295 | ||||||
Equity | ||||||||
Contributed equity | 48,781 | 36,641 | ||||||
Other contributed equity | 464 | 464 | ||||||
Reserves | 1,521 | 2,489 | ||||||
Accumulated losses | (34,046 | ) | (24,212 | ) | ||||
|
|
|
| |||||
Total equity | 16,720 | 15,382 | ||||||
|
|
|
|
2021
Ownership interest | ||||||||||
Name | Principal place of business / Country of incorporation | 2020 % | 2019 % | |||||||
Kazia Laboratories Pty Ltd | Australia | 100.00 | % | 100.00 | % | |||||
Kazia Research Pty Ltd | Australia | 100.00 | % | 100.00 | % | |||||
Kazia Therapeutics Inc. | United States of America | 100.00 | % | 100.00 | % | |||||
Glioblast Pty Ltd | Australia | 100.00 | % | 100.00 | % |
Ownership interest | ||||||||||
Name | Principal place of business / Country of incorporation | 2021 % | 2020 % | |||||||
Kazia Laboratories Pty Ltd | Australia | 100.00 | % | 100.00 | % | |||||
Kazia Research Pty Ltd | Australia | 100.00 | % | 100.00 | % | |||||
Kazia Therapeutics Inc. | United States of America | 100.00 | % | 100.00 | % | |||||
Glioblast Pty Ltd | Australia | 100.00 | % | 100.00 | % | |||||
Kazia Therapeutics (Hong Kong) Limited | Hong Kong | 100.00 | % | — |
2020 | 2019 | 2018 | ||||||||||
A$’000 | A$’000 | A$’000 | ||||||||||
Loss after income tax expense from continuing operations | (12,467 | ) | (10,270 | ) | (6,039 | ) | ||||||
|
|
|
|
|
| |||||||
Adjustments for: | ||||||||||||
Depreciation & amortisation | 1,084 | 1,084 | 1,547 | |||||||||
Impairment of property, plant & equipment | — | 1 | 143 | |||||||||
Net loss on disposal on disposal of non-current assets | — | — | 136 | |||||||||
Net fair value loss on financial assets | 168 | 1,809 | 3,944 | |||||||||
Share based payments | 262 | 246 | 165 | |||||||||
Shares issued for no consideration | — | — | 30 | |||||||||
Foreign exchange differences | — | — | (251 | ) | ||||||||
Gain on legal settlement | — | — | (8,411 | ) | ||||||||
Loss on contingent consideration | 474 | 63 | (1,461 | ) | ||||||||
|
|
|
|
|
| |||||||
Change in operating assets & liabilities: | (10,479 | ) | (7,067 | ) | (10,197 | ) | ||||||
Decrease in trade and other receivables | 358 | 825 | 1,724 | |||||||||
Increase in accrued revenue | — | (138 | ) | 97 | ||||||||
Decrease/(increase) in prepayments | (168 | ) | 398 | (10 | ) | |||||||
Decrease/(increase) in trade and other payables | 1,721 | (409 | ) | 88 | ||||||||
Decrease in deferred tax liability | (298 | ) | (298 | ) | (305 | ) | ||||||
Increase/(decrease) in other provisions | 55 | (25 | ) | (58 | ) | |||||||
|
|
|
|
|
| |||||||
Net cash used in operating activities | (8,811 | ) | (6,714 | ) | (8,661 | ) | ||||||
|
|
|
|
|
|
2021 | �� | 2020 | 2019 | |||||||||
A$’000 | A$’000 | A$’000 | ||||||||||
Loss after income tax expense from continuing operations | (8,422 | ) | (12,467 | ) | (10,270 | ) | ||||||
Adjustments for: | ||||||||||||
Depreciation & amortisatio n | 1,265 | 1,084 | 1,084 | |||||||||
Impairment of property, plant & equipment | — | — | 1 | |||||||||
Net fair value loss on financial assets | — | 168 | 1,809 | |||||||||
Share based payments | 637 | 262 | 246 | |||||||||
Foreign exchange difference s | 430 | — | — | |||||||||
Loss on contingent consideration | 2,570 | 474 | 63 | |||||||||
Change in operating assets & liabilities: | (3,521 | ) | (10,479 | ) | (7,067 | ) | ||||||
Decrease in trade and other receivables | (5,027 | ) | 358 | 825 | ||||||||
Increase in accrued revenue | — | — | (138 | ) | ||||||||
Decrease/(increase) in prepayment s | (1,182 | ) | (168 | ) | 398 | |||||||
Decrease/(increase) in trade and other payables | 1,010 | 1,722 | (409 | ) | ||||||||
Decrease in deferred tax liability | (484 | ) | (298 | ) | (298 | ) | ||||||
Increase/(decrease) in other provisions | 93 | 55 | (25 | ) | ||||||||
Net cash used in operating activities | (9,111 | ) | (8,810 | ) | (6,714 | ) | ||||||
2020 A$’000 | 2019 A$’000 | 2018 A$’000 | ||||||||||
Loss after income tax attributable to the owners of Kazia Therapeutics Limited | (12,467 | ) | (10,270 | ) | (6,039 | ) | ||||||
|
|
|
|
|
| |||||||
Loss after income tax attributable to the owners of Kazia Therapeutics Limited | (12,467 | ) | (10,270 | ) | (6,039 | ) | ||||||
|
|
|
|
|
| |||||||
Number | Number | Number | ||||||||||
Weighted average number of ordinary shares used in calculating basic earnings per share | 73,053,514 | 57,503,555 | 48,376,525 | |||||||||
|
|
|
|
|
| |||||||
Weighted average number of ordinary shares used in calculating Diluted earnings per share | 73,053,514 | 57,503,555 | 48,376,525 | |||||||||
|
|
|
|
|
| |||||||
Cents | Cents | Cents | ||||||||||
Basic earnings per share | (17.07 | ) | (17.86 | ) | (12.48 | ) | ||||||
Diluted earnings per share | (17.07 | ) | (17.86 | ) | (12.48 | ) |
2021 A$’000 | 2020 A$’000 | 2019 A$’000 | ||||||||||
Loss after income tax attributable to the owners of Kazia Therapeutics Limited | (8,422 | ) | (12,467 | ) | (10,270 | ) | ||||||
Loss after income tax attributable to the owners of Kazia Therapeutics Limited | (8,422 | ) | (12,467 | ) | (10,270 | ) | ||||||
Number | Number | Number | ||||||||||
Weighted average number of ordinary shares used in calculating basic earnings per share | 117,674,543 | 73,053,514 | 57,503,555 | |||||||||
Weighted average number of ordinary shares used in calculating Diluted earnings per share | 117,674,543 | 73,053,514 | 57,503,555 | |||||||||
Cents | Cents | Cents | ||||||||||
Basic earnings per share | (7.16 | ) | (17.07 | ) | (17.86 | ) | ||||||
Diluted earnings per share | (7.16 | ) | (17.07 | ) | (17.86 | ) |
The
The options in the remaining tranches in the tableset out below have been issued to employees and directors under the ESOP. In total, $262,105 (2019: $246,387)During the financial year an expense of employee remuneration expense (all of which related to equity-settled share-based payment transactions) has been included in profit or loss$636,383 was recognised.
Tranche | Grant date | Expiry date | A$ Exercise price | Balance at the start of the year | Granted | Exercised | Expired/ lapsed on termination of employment | Balance at the end of the year | ||||||||||||||||||||||||
1 | 16/11/2015 | 16/11/2020 | $ | 2.200 | 236,667 | — | — | (236,667 | ) | — | ||||||||||||||||||||||
2 | 05/09/2016 | 05/09/2021 | $ | 1.630 | 50,000 | — | — | — | 50,000 | |||||||||||||||||||||||
3 | 12/10/2016 | 17/10/2021 | $ | 1.560 | 62,000 | — | — | — | 62,000 | |||||||||||||||||||||||
4 | 31/10/2016 | 01/11/2021 | $ | 1.380 | 12,500 | — | — | — | 12,500 | |||||||||||||||||||||||
5 | 21/11/2016 | 23/11/2021 | $ | 1.380 | 50,000 | — | — | — | 50,000 | |||||||||||||||||||||||
6 | 07/08/2017 | 07/08/2022 | $ | 0.670 | 224,000 | — | (121,500 | ) | (15,500 | ) | 87,000 | |||||||||||||||||||||
7 | 05/02/2018 | 05/02/2023 | $ | 0.780 | 440,000 | — | (120,000 | ) | — | 320,000 | ||||||||||||||||||||||
8 | 04/01/2019 | 04/01/2024 | $ | 0.492 | 250,000 | — | (200,000 | ) | (12,500 | ) | 37,500 | |||||||||||||||||||||
9 | 13/11/2019 | 04/01/2024 | $ | 0.492 | 1,200,000 | — | — | — | 1,200,000 | |||||||||||||||||||||||
10 | 13/01/2020 | 13/01/2025 | $ | 0.881 | 250,000 | — | — | (50,000 | ) | 200,000 | ||||||||||||||||||||||
11 | 09/11/2020 | 13/01/2025 | $ | 1.132 | — | 1,200,000 | — | — | 1,200,000 | �� | ||||||||||||||||||||||
12 | 09/11/2020 | 13/01/2025 | $ | 0.881 | — | 800,000 | — | — | 800,000 | |||||||||||||||||||||||
13 | 04/01/2021 | 04/01/2025 | $ | 1.690 | — | 200,000 | — | — | 200,000 | |||||||||||||||||||||||
2,775,167 | 2,200,000 | (441,500 | ) | (314,667 | ) | 4,219,000 | ||||||||||||||||||||||||||
Weighted average exercise price | $ | 0.797 | $ | 1.090 | $ | 0.620 | $ | 1.850 | $ | $0.826 | ||||||||||||||||||||||
2021
Options in tranches 5-7 and 15 represent a modification which occurred during the year. The options in tranches 5-7 were cancelled and the options in tranche 15 issued in their stead. These options were issued to the CEO and Managing Director, and the modification was approved by the shareholders on 13 November 2019. The option pricing model used to determine the incremental fair value was a Black-Scholes option pricing model. The inputs into the valuation model are set out in a table later in this note and the assumptions with regard to dividends, volatility and risk-free rate are relevant to the newly issued replacement options. The volatility was determined based upon historical volatility. The fair value of the new options granted was $216,000 and the fair value of the old options was de minimus just prior to the modification. Therefore, the incremental fair value of the modification was $216,000.
The terms of the options were agreed by the directors on 4 January 2019, including immediate vesting of 50% of the options, with the remaining options to vest in equal portions over the following three years starting 4 January 2020. The options will expire on 4 January 2024. Because the options required shareholder approval they were not issued until that approval was granted on 13 November 2019, however the terms were as agreed on 4 January 2019.
2020
Tranche | Grant date | Expiry date | A$ Exercise price | Balance at the year | Granted | Modified | Expired | Balance at the end of the year | ||||||||||||||||||||||||
1 | 04/03/2015 | 16/12/2019 | $ | 1.500 | 46,647 | — | — | (46,647 | ) | — | ||||||||||||||||||||||
2 | 04/03/2015 | 18/12/2019 | $ | 1.500 | 19,952 | — | — | (19,952 | ) | — | ||||||||||||||||||||||
3 | 24/06/2015 | 30/06/2020 | $ | 4.000 | 519,000 | — | — | (519,000 | ) | — | ||||||||||||||||||||||
4 | 16/11/2015 | 16/11/2020 | $ | 2.200 | 236,667 | — | — | — | 236,667 | |||||||||||||||||||||||
5 | 18/03/2016 | 01/02/2021 | $ | 1.990 | 300,000 | — | (300,000 | ) | — | — | ||||||||||||||||||||||
6 | 18/03/2016 | 01/02/2021 | $ | 1.990 | 200,000 | — | (200,000 | ) | — | — | ||||||||||||||||||||||
7 | 18/03/2016 | 01/02/2021 | $ | 2.610 | 250,000 | — | (250,000 | ) | — | — | ||||||||||||||||||||||
8 | 05/09/2016 | 05/09/2021 | $ | 1.630 | 50,000 | — | — | — | 50,000 | |||||||||||||||||||||||
9 | 12/10/2016 | 17/10/2021 | $ | 1.560 | 62,000 | — | — | — | 62,000 | |||||||||||||||||||||||
10 | 31/10/2016 | 01/11/2021 | $ | 1.380 | 12,500 | — | — | — | 12,500 | |||||||||||||||||||||||
11 | 21/11/2016 | 23/11/2021 | $ | 1.380 | 50,000 | — | — | — | 50,000 | |||||||||||||||||||||||
12 | 07/08/2017 | 07/08/2022 | $ | 0.670 | 224,000 | — | — | — | 224,000 | |||||||||||||||||||||||
13 | 05/02/2018 | 05/02/2023 | $ | 0.780 | 440,000 | — | — | — | 440,000 | |||||||||||||||||||||||
14 | 04/01/2019 | 04/01/2024 | $ | 0.492 | 250,000 | — | — | — | 250,000 | |||||||||||||||||||||||
15 | 13/11/2019 | 04/01/2024 | $ | 0.492 | — | — | 1,200,000 | — | 1,200,000 | |||||||||||||||||||||||
16 | 13/01/2020 | 13/01/2025 | $ | 0.881 | — | 250,000 | — | — | 250,000 | |||||||||||||||||||||||
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2,660,766 | 250,000 | 450,000 | (585,599 | ) | 2,775,167 | |||||||||||||||||||||||||||
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Weighted average exercise price |
| $ | 1.960 | $ | 0.880 | $ | 2.348 | $ | 3.716 | $ | 0.797 | |||||||||||||||||||||
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No options were exercised or forfeited during the year.
Tranche | Grant date | Expiry date | A$ Exercise price | Balance at the start of the year | Granted | Modified | Expired | Balance at the end of the year | ||||||||||||||||||||||||
1 | 04/03/2015 | 16/12/2019 | $ | 1.500 | 46,647 | — | — | (46,647 | ) | — | ||||||||||||||||||||||
2 | 04/03/2015 | 18/12/2019 | $ | 1.500 | 19,952 | — | — | (19,952 | ) | — | ||||||||||||||||||||||
3 | 24/06/2015 | 30/06/2020 | $ | 4.000 | 519,000 | — | — | (519,000 | ) | — | ||||||||||||||||||||||
4 | 16/11/2015 | 16/11/2020 | $ | 2.200 | 236,667 | — | — | — | 236,667 | |||||||||||||||||||||||
5 | 18/03/2016 | 01/02/2021 | $ | 1.990 | 300,000 | — | (300,000 | ) | — | — | ||||||||||||||||||||||
6 | 18/03/2016 | 01/02/2021 | $ | 1.990 | 200,000 | — | (200,000 | ) | — | — | ||||||||||||||||||||||
7 | 18/03/2016 | 01/02/2021 | $ | 2.610 | 250,000 | — | (250,000 | ) | — | — | ||||||||||||||||||||||
8 | 05/09/2016 | 05/09/2021 | $ | 1.630 | 50,000 | — | — | — | 50,000 | |||||||||||||||||||||||
9 | 12/10/2016 | 17/10/2021 | $ | 1.560 | 62,000 | — | — | — | 62,000 | |||||||||||||||||||||||
10 | 31/10/2016 | 01/11/2021 | $ | 1.380 | 12,500 | — | — | — | 12,500 | |||||||||||||||||||||||
11 | 21/11/2016 | 23/11/2021 | $ | 1.380 | 50,000 | — | — | — | 50,000 | |||||||||||||||||||||||
12 | 07/08/2017 | 07/08/2022 | $ | 0.670 | 224,000 | — | — | — | 224,000 | |||||||||||||||||||||||
13 | 05/02/2018 | 05/02/2023 | $ | 0.780 | 440,000 | — | — | — | 440,000 | |||||||||||||||||||||||
14 | 04/01/2019 | 04/01/2024 | $ | 0.492 | 250,000 | — | — | — | 250,000 | |||||||||||||||||||||||
15 | 13/11/2019 | 04/01/2024 | $ | 0.492 | — | — | 1,200,000 | — | 1,200,000 | |||||||||||||||||||||||
16 | 13/01/2020 | 13/01/2025 | $ | 0.881 | — | 250,000 | — | — | 250,000 | |||||||||||||||||||||||
2,660,766 | 250,000 | 450,000 | (585,599 | ) | 2,775,167 | |||||||||||||||||||||||||||
Weighted average exercise price | $ | 1.960 | $ | 0.880 | $ | 2.348 | $ | 3.716 | $ | 0.797 | ||||||||||||||||||||||
Notes to the financial statements
June 30, 2020
Note 33. Share-based payments (continued)
2019
Tranche | Grant date | Expiry date | A$ Exercise price | Balance at the start of the year | Granted | Exercised | Forfeited on cessation of employment | Balance at the end of the year | ||||||||||||||||||||||||
1 | 04/03/2015 | 16/12/2019 | $ | 1.500 | 46,647 | — | — | — | 46,647 | |||||||||||||||||||||||
2 | 04/03/2015 | 18/12/2019 | $ | 1.500 | 19,952 | — | — | — | 19,952 | |||||||||||||||||||||||
3 | 24/06/2015 | 30/06/2020 | $ | 4.000 | 519,000 | — | — | — | 519,000 | |||||||||||||||||||||||
4 | 16/11/2015 | 16/11/2020 | $ | 2.200 | �� | 236,667 | — | — | — | 236,667 | ||||||||||||||||||||||
5 | 18/03/2016 | 01/02/2021 | $ | 1.990 | 300,000 | — | — | — | 300,000 | |||||||||||||||||||||||
6 | 18/03/2016 | 01/02/2021 | $ | 1.990 | 200,000 | — | — | — | 200,000 | |||||||||||||||||||||||
7 | 18/03/2016 | 01/02/2021 | $ | 2.610 | 250,000 | — | — | — | 250,000 | |||||||||||||||||||||||
8 | 05/09/2016 | 05/09/2021 | $ | 1.630 | 50,000 | — | — | — | 50,000 | |||||||||||||||||||||||
9 | 12/10/2016 | 17/10/2021 | $ | 1.560 | 62,000 | — | — | — | 62,000 | |||||||||||||||||||||||
10 | 31/10/2016 | 01/11/2021 | $ | 1.380 | 12,500 | — | — | — | 12,500 | |||||||||||||||||||||||
11 | 21/11/2016 | 23/11/2021 | $ | 1.380 | 50,000 | — | — | — | 50,000 | |||||||||||||||||||||||
12 | 07/08/2017 | 07/08/2022 | $ | 0.670 | 224,000 | — | — | — | 224,000 | |||||||||||||||||||||||
13 | 05/02/2018 | 05/02/2023 | $ | 0.780 | 440,000 | — | — | — | 440,000 | |||||||||||||||||||||||
14 | 04/01/2019 | 04/01/2024 | $ | 0.492 | — | 250,000 | — | — | 250,000 | |||||||||||||||||||||||
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2,410,766 | 250,000 | — | — | 2,660,766 | ||||||||||||||||||||||||||||
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Weighted average exercise price |
| A$ | 2.120 | A$ | 0.490 | A$ | 0.000 | A$ | 0.000 | A$ | 1.960 |
At the end of the period the following options were vested and exercisable:
- Options from Tranche 1 to Tranche 6, Tranches 8, 10 and 11 were vested and exercisable
- Options in Tranches 7 and 14 were unvested
- Options from Tranche 9 and 13 were vested and exercisable as to 50%
- Options from Tranche 12 were vested and exercisable as to 25%
All remaining options are expected to vest in future periods. No options have expired during the financial year.
The weighted average remaining contractual life of options outstanding at the 30 June 2019 is 1.43 years.
Also during the year, 750,000 options were cancelled and replaced by 1,200,000 new options issued
Of the new options, which are shown as tranche 15:
50% vested immediately
the remaining 50% vest equally over 3 years infour equal annual intervalstranches from 4 January 2020
An option
Notes to the financial statements
June 30, 2020
Note 33. Share-based payments (continued)
2021.
Grant date | Expiry date | Share price at Grant Date | Exercise price | Volatility (%) | Remaining Life (years) | Risk free Rate (%) | Fair value per option | |||||||
16/11/2015 | 16/11/2020 | $0.140 | $2.200 | 158.00% | 0.37 | 2.04% | $1.280 | |||||||
05/09/2016 | 05/09/2021 | $0.105 | $1.630 | 122.00% | 1.16 | 1.60% | $0.840 | |||||||
12/10/2016 | 17/10/2021 | $0.098 | $1.560 | 122.00% | 1.29 | 1.89% | $0.780 | |||||||
31/10/2016 | 01/11/2021 | $0.090 | $1.380 | 122.00% | 1.20 | 1.87% | $0.720 | |||||||
21/11/2016 | 23/11/2021 | $0.092 | $1.380 | 122.00% | 1.20 | 2.10% | $0.730 | |||||||
07/08/2017 | 07/08/2022 | $0.430 | $0.670 | 74.50% | 2.08 | 1.95% | $0.206 | |||||||
05/02/2018 | 05/02/2023 | $0.500 | $0.780 | 74.50% | 2.58 | 1.95% | $0.200 | |||||||
04/01/2019 | 04/01/2024 | $0.340 | $0.493 | 74.50% | 3.50 | 1.95% | $0.140 | |||||||
13/11/2019 | 13/11/2024 | $0.410 | $0.493 | 74.50% | 4.20 | 1.95% | $0.180 | |||||||
13/01/2020 | 13/01/2025 | $0.620 | $0.881 | 74.50% | 4.50 | 1.95% | $0.340 |
Notes
Grant date | Expiry date | Share price at Grant Date | Exercise price | Volatility (%) | Remaining Life (years) | Risk free Rate (%) | Fair value per option | |||||||
05/09/2016 | 05/09/2021 | $0.105 | $1.630 | 122.00% | 1.16 | 1.60% | $0.840 | |||||||
12/10/2016 | 17/10/2021 | $0.098 | $1.560 | 122.00% | 1.29 | 1.89% | $0.780 | |||||||
31/10/2016 | 01/11/2021 | $0.090 | $1.380 | 122.00% | 1.20 | 1.87% | $0.720 | |||||||
21/11/2016 | 23/11/2021 | $0.092 | $1.380 | 122.00% | 1.20 | 2.10% | $0.730 | |||||||
07/08/2017 | 07/08/2022 | $0.430 | $0.670 | 74.50% | 2.08 | 1.95% | $0.206 | |||||||
05/02/2018 | 05/02/2023 | $0.500 | $0.780 | 74.50% | 2.58 | 1.95% | $0.200 | |||||||
04/01/2019 | 04/01/2024 | $0.340 | $0.493 | 74.50% | 3.50 | 1.95% | $0.140 | |||||||
13/11/2019 | 04/01/2024 | $0.410 | $0.493 | 74.50% | 4.20 | 1.95% | $0.180 | |||||||
13/01/2020 | 13/01/2025 | $0.620 | $0.881 | 74.50% | 4.50 | 1.95% | $0.340 | |||||||
09/11/2020 | 09/11/2024 | $0.890 | $1.132 | 90.00% | 2.10 | 0.10% | $0.379 | |||||||
09/11/2020 | 09/11/2024 | $0.890 | $1.132 | 90.00% | 2.30 | 0.10% | $0.403 | |||||||
09/11/2020 | 09/11/2024 | $0.890 | $1.132 | 90.00% | 2.60 | 0.10% | $0.425 | |||||||
09/11/2020 | 09/11/2024 | $0.890 | $1.132 | 90.00% | 2.80 | 0.10% | $0.446 | |||||||
09/11/2020 | 13/01/2025 | $0.890 | $0.881 | 90.00% | 2.20 | 0.10% | $0.450 | |||||||
09/11/2020 | 13/01/2025 | $0.890 | $0.881 | 90.00% | 2.70 | 0.10% | $0.490 | |||||||
09/11/2020 | 13/01/2025 | $0.890 | $0.881 | 90.00% | 3.20 | 0.10% | $0.520 | |||||||
09/11/2020 | 13/01/2025 | $0.890 | $0.881 | 90.00% | 3.70 | 0.10% | $0.550 | |||||||
04/01/2021 | 04/01/2025 | $1.185 | $1.169 | 90.00% | 2.50 | 0.19% | $0.520 | |||||||
04/01/2021 | 04/01/2025 | $1.185 | $1.169 | 90.00% | 3.00 | 0.19% | $0.576 | |||||||
04/01/2021 | 04/01/2025 | $1.185 | $1.169 | 90.00% | 3.50 | 0.19% | $0.627 | |||||||
04/01/2021 | 04/01/2025 | $1.185 | $1.169 | 90.00% | 4.00 | 0.19% | $0.671 |
June 30, 2020
Note 34. Subsequent events
In August 2020 the Company was advised that the United States Food and Drug Administration (FDA) has awarded Rare Pediatric Disease Designation (RPDD) to Kazia’s paxalisib (formerly GDC-0084) for the treatment of Diffuse Intrinsic Pontine Glioma (DIPG), a rare and highly-aggressive childhood brain cancer.
In August 2020 the Company was also advised that the FDA has awarded Fast Track Designation (FTD) to paxalisib for the treatment of glioblastoma, the most common and the most aggressive form of primary brain cancer in adults.
In August 2020 United States Food and Drug Administration (FDA) has granted Orphan Drug Designation (ODD) to Kazia’s paxalisib (formerly GDC-0084) for the treatment of malignant glioma, which includes Diffuse Intrinsic Pontine Glioma (DIPG), a rare and highly aggressive childhood brain cancer.
In October 2020 the Company raised approximately $24 million (after costs) from a fully underwritten entitlement offer to eligible shareholders. The proceeds of the offer will be used to fund the Company’s participation in the GBM Agile study for paxalisib in glioblastoma (GBM Agile) and for general working capital.
F-35