SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR
15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of February 2017
Prana Biotechnology Limited
(Name of Registrant)
Level 2, 369 Royal Parade Parkville Victoria 3052 Australia
(Address of Principal Executive Office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-Fx Form 40-F¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): __
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): __
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes¨ Nox
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- _____
This Form 6-K is not being incorporated by reference into the Registrant’s Registration Statements on Form F-3 (File No. 333-199783) and Form S-8 (File No. 333-153669).
PRANA BIOTECHNOLOGY LIMITED
6-K | Items |
1. | Appendix 4D |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
PRANA BIOTECHNOLOGY LIMITED | |||
(Registrant) | |||
By: | /s/ Geoffrey Kempler | ||
Geoffrey Kempler, | |||
Executive Chairman |
February 24, 2017
Prana Biotechnology Limited
Appendix 4D
31December 2016
Prana Biotechnology Limited
Appendix 4D
Half-year Report
31 December 2016
1. Company Information
Name of entity: Prana Biotechnology Limited
ABN: 37 080 699 065
Current Reporting Period: Half year ended 31 December 2016
Previous Corresponding Period: Half year ended 31 December 2015
This report is to be read in conjunction with the 30 June 2016 Annual Report and is given in compliance with Listing Rule 4.2A.
2. Results for announcement to the market
A$ | ||||||||||||
Revenue from continuing operations | Down | 5.7 | % | to | 72,883 | |||||||
Loss after tax attributable to members | Up | 27.9 | % | to | 3,651,845 | |||||||
Net loss for the period attributable to members | Up | 27.9 | % | to | 3,651,845 |
Comments
Prana Biotechnology Limited recorded revenue of $72,883 for the period ended 31 December 2016 (2015: $77,328), which is interest received on company bank accounts. The increase in interest received is due to increased amounts of cash being carried in interest bearing accounts.
Prana Biotechnology Limited has incurred a loss for the half year of $3,651,845 (2015: $2,854,825). This loss has increased compare due to a decrease in other income related to the R&D Tax Incentive, and a reduction in foreign exchange gain as a result of less fluctuation between U.S dollars and Australian dollars during the period.
Refer to the Directors’ report - Review of Operations for further information.
3. Net tangible asset per security
31 December | 30 June | |||||||
2016 | 2016 | |||||||
A$ | A$ | |||||||
Net tangible assets | 27,561,006 | 31,367,213 | ||||||
Weighted average number of ordinary shares used as the denominator in calculating basic loss per share | 533,891,470 | 533,891,470 | ||||||
Net tangible assets per shares (cents) | 5.16 | 5.88 |
Prana Biotechnology Limited
Appendix 4D
31 December 2016
(continued)
4.Changes in controlled entities
Not applicable
5. Distributions
Franked | ||||||||
Amount per | amount per | |||||||
security | security | |||||||
Interim dividend (per share) | - | - | ||||||
Final dividend (per share) | - | - | ||||||
Previous corresponding period | - | - |
6. Dividend reinvestment plan
Not applicable
7. Details of associates and joint venture entities
Not applicable
8. Foreign entities
Not applicable
9. Audit
These accounts were subject to a review by the auditors and the review report is attached as part of the Interim Financial Report.
10. Attachments
Interim Financial Report for the half year ended 31 December 2016 for Prana Biotechnology Limited.
/s/ Geoffrey Kempler
Mr. Geoffrey Kempler
Executive Chairman and Chief Executive Officer
Prana Biotechnology Limited
Melbourne
24 February 2017
Prana Biotechnology Limited
ABN 37 080 699 065
Interim report
for the half-year 31 December 2016
Prana Biotechnology Limited ABN 37 080 699 065
Interim report - 31 December 2016
Contents
Page | |
Corporate directory | |
Directors’ report | 4 |
Interim financial statements | |
Consolidated statement of profit or loss and other comprehensive income | 7 |
Consolidated statement of financial position | 8 |
Consolidated statement of changes in equity | 9 |
Consolidated statement of cash flows | 10 |
Notes to the consolidated financial statements | 11 |
Directors’ declaration | 18 |
Independent auditor’s review report to the members | 19 |
This interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2016 and any public announcements made by Prana Biotechnology Limited during the interim reporting period in accordance with the continuous disclosure requirements of theCorporations Act 2001.
2 |
Directors | Mr. Geoffrey Kempler |
Executive Chairman | |
Mr. Brian Meltzer | |
Non-Executive Independent Director | |
Dr. George Mihaly | |
Non-Executive Independent Director | |
Mr. Peter Marks | |
Non-Executive Independent Director | |
Mr. Lawrence Gozlan | |
Non-Executive Independent Director | |
Prof. Ira Shoulson | |
Non-Executive Director | |
Secretary | Mr. Phillip Hains |
Principal registered office in Australia | Suite 1, 1233 High Street |
Armadale Victoria 3143 | |
Australia | |
+61 3 9824 5254 | |
Share and debenture register | Computershare Investor Services Pty Ltd |
Yarra Falls, 452 Johnston Street | |
Abbotsford, Victoria 3067 | |
1300 85 05 05 (within Australia) & +61 3 9415 4000 | |
(overseas) | |
Auditor | PricewaterhouseCoopers |
2 Riverside Quay | |
Southbank Victoria 3006 | |
Solicitors | Quinert Rodda & Associates |
Suite 1, Level 6, 50 Queen Street | |
Melbourne Victoria 3000 | |
Website | www.pranabio.com |
3 |
Prana Biotechnology Limited
Directors’ report
31 December 2016
Directors’ report
Your directors present their report on the consolidated entity (referred to hereafter as the group) consisting of Prana Biotechnology Limited and the entities it controlled at the end of, or during, the half-year 31 December 2016.
Directors
The following persons held office as directors of Prana Biotechnology Limited during the financial period:
Mr. Geoffrey Kempler, Executive Chairman
Mr. Brian Meltzer, Non-Executive Independent Director
Dr. George Mihaly, Non-Executive Independent Director
Mr. Peter Marks, Non-Executive Independent Director
Mr. Lawrence Gozlan, Non-Executive Independent Director
Prof. Ira Shoulson, Non-Executive Director
Review of operations
Results
The Group reported a loss for the half-year of $3,651,845 (2015: $2,854,825). The loss is after fully expensing all research and development costs.
Cash
The Group’s cash on hand as at 31 December 2016 totalled $28,341,761 (30 June 2016: $28,593,538). In addition, the Group has recorded at 31 December 2016 a total of of $1,846,562 in receivables, including $1,830,734 from the Australian Tax Office, in respect of its 2017 R&D tax incentive claim up to 31 December 2016. The Group expects to receive these amounts during the 12 months ended 30 June 2018.
Operations
Detailed below is an update on the status of the Group’s research and development projects and overall operations for the half-year ended 31 December 2016.
The Group’s 30 June 2016 Annual Report contains detailed background information relating to its operations including its research and development projects and collaboration partners and should be read in conjunction with this report.
PBT2 Huntington disease clinical development update
In February 2015 we reported that the U.S. Food and Drug Administration (FDA) had placed PBT2 on Partial Clinical Hold (PCH) based on particular non-clinical neurotoxicology findings in a dog study which limit the dose of PBT2 that we can use in future trials. A Complete Response was filed presenting strong clinical safety information and rationale to continue development into Phase 3. The FDA has maintained its partial clinical hold with the FDA seeking information and data from additional prospective non-clinical investigations in dogs to further characterize the neurotoxicity findings in the dog study. In November 2016 we met with two regulatory authorities in Europe, the Medical and Healthcare Regulatory Agency in London and the Medicinal Products Agency in Stockholm to discuss the steps required to initiate a Phase 3 program. As previously reported, both agencies encouraged Prana to continue with its development program in Huntington disease in view of the very large unmet need in this debilitating disease. Similar to the FDA, both agencies recommended further non-clinical investigations to further characterize the neurotoxicity and reversibility of the neurotoxic findings in the dog study.
Further analysis on the nature of the cognitive improvement observed in the Phase 2 ‘Reach2HD’ study was presented in July 2016 at the International Movement Disorders Conference in Berlin, Germany and at the American Neurological Association Annual meeting in Baltimore, Maryland in the United States. This analysis reviewed the Patient Reported Outcomes from the Phase 2 Huntington disease trial ‘HD-PROP’ and showed that self-reported improvement was strongly associated with PBT2 administration.
4 |
Prana Biotechnology Limited
Directors’ report
31 December 2016
(continued)
Review of operations (continued)
PBT434 Movement Disorder clinical candidate update
It has been previously reported that PBT434 is neuroprotective having demonstrated significant preservation of the substantia nigra, a brain region containing dopaminergic neurons responsible for motor coordination. This has translated into improved motor function, coordination and cognition in multiple mouse models of Parkinson’s disease. In addition to exploring Parkinsonian Movement Disorders, Prana has advanced this program with ‘proof of concept’ mouse models of atypical Parkinsonian conditions. Specifically, in synucleinopathies or tauopathies including conditions such as Multiple System Atrophy, Dementia with Lewy Bodies, Corticobasal Degeneration and Progressive Supranuclear Palsy. PBT434 has been shown to decrease insoluble forms of α-synuclein, prevent the phosphorylation of tau protein and promote neuronal preservation with consequent improvement in motor and cognitive function.
A comprehensive International Council for Harmonisation of Technical Requirements for Human Use (ICH) compliant IND-enabling non-clinical program has been conducted to evaluate PBT434’s pharmacologic, pharmacokinetic and toxicological profile. PBT434 has been shown to be well tolerated with limited toxicity. A pre-IND dossier was submitted to the FDA to obtain preliminary advice from the Agency on the suitability of the non-clinical package and manufacturing of PBT434 to support Phase I studies. The written response from FDA did not identify any substantive issues ahead of us submitting our full non-clinical and manufacturing package for approval to enable Phase 1 studies.
Pipeline development from Translational Biology Program
New development candidates from Prana’s Metal-Protein Attenuating Compounds (MPACs) have emerged over the reporting period. These MPACs have demonstrated a number of key attributes required to tackle neurodegenerative processes including: the ability to reduce metal mediated oxidative and nitrosative stress, inhibit target protein oligomer aggregation and restore neuronal interconnections. The new candidates arose from novel discovery chemistry to create new chemical entities within new generation MPAC chemical scaffolds that are orally bioavailable and brain penetrable.
Prana actively continues to review other potentially suitable opportunities that may be highly attractive and can add significant shareholder value in the medium to longer term.
Auditor’s independence declaration
A copy of the auditor’s independence declaration as required under section 307C of theCorporations Act 2001is set out on page 6.
This report is made in accordance with a resolution of the Board of Directors.
/s/ Geoffrey Kempler
Mr. Geoffrey Kempler
Director
Melbourne
24 February 2017
5 |
6 |
Prana Biotechnology Limited
Consolidated statement of profit or loss and other comprehensive income
For the half-year 31 December 2016
31 December | 31 December | |||||||||||
2016 | 2015 | |||||||||||
Notes | A$ | A$ | ||||||||||
Revenue from ordinary activities | 5 | 72,883 | 77,328 | |||||||||
Other income | 5 | 1,830,734 | 2,779,394 | |||||||||
Intellectual property expenses | (108,402 | ) | (120,170 | ) | ||||||||
General and administration expenses | 6 | (2,029,682 | ) | (1,959,153 | ) | |||||||
Research and development expenses | 6 | (3,832,414 | ) | (4,918,889 | ) | |||||||
Other operating expenses | (80,983 | ) | (32,334 | ) | ||||||||
Other gains and losses | 6 | 496,019 | 1,318,999 | |||||||||
Loss before income tax | (3,651,845 | ) | (2,854,825 | ) | ||||||||
Income tax expense | - | - | ||||||||||
Loss for the period | (3,651,845 | ) | (2,854,825 | ) | ||||||||
Other comprehensive loss for the period, net of tax | - | - | ||||||||||
Total comprehensive loss for the period | (3,651,845 | ) | (2,854,825 | ) |
Cents | Cents | |||||||||||
Loss per share for profit attributable to the ordinary equity holders of the company: | ||||||||||||
Basic loss per share | 4 | 0.68 | 0.53 | |||||||||
Diluted loss per share | 4 | 0.68 | 0.53 |
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.
7 |
Prana Biotechnology Limited
Consolidated statement of financial position
As at 31 December 2016
31 December | 30 June | |||||||||||
2016 | 2016 | |||||||||||
Notes | A$ | A$ | ||||||||||
ASSETS | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | 28,341,761 | 28,593,538 | ||||||||||
Trade and other receivables | 1,846,562 | 4,786,765 | ||||||||||
Other current assets | 142,808 | 276,504 | ||||||||||
Total current assets | 30,331,131 | 33,656,807 | ||||||||||
Non-current assets | ||||||||||||
Property, plant and equipment | 35,867 | 24,224 | ||||||||||
Other non-current assets | 43,988 | 43,988 | ||||||||||
Total non-current assets | 79,855 | 68,212 | ||||||||||
Total assets | 30,410,986 | 33,725,019 | ||||||||||
LIABILITIES | ||||||||||||
Current liabilities | ||||||||||||
Trade and other payables | 2,119,795 | 1,748,566 | ||||||||||
Provisions | 729,722 | 608,771 | ||||||||||
Total current liabilities | 2,849,517 | 2,357,337 | ||||||||||
Non-current liabilities | ||||||||||||
Provisions | 463 | 469 | ||||||||||
Total non-current liabilities | 463 | 469 | ||||||||||
Total liabilities | 2,849,980 | 2,357,806 | ||||||||||
Net assets | 27,561,006 | 31,367,213 | ||||||||||
EQUITY | ||||||||||||
Contributed equity | 8 | 146,724,852 | 146,879,214 | |||||||||
Reserves | 9 | 9,363,181 | 9,363,181 | |||||||||
Retained earnings | (128,527,027 | ) | (124,875,182 | ) | ||||||||
Total equity | 27,561,006 | 31,367,213 |
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
8 |
Prana Biotechnology Limited
Consolidated statement of changes in equity
For the half-year 31 December 2016
Attributable to owners of | ||||||||||||||||||||
Prana Biotechnology Limited | ||||||||||||||||||||
Accumulated | ||||||||||||||||||||
Share capital | Other reserves | losses | Total | |||||||||||||||||
Notes | A$ | A$ | A$ | A$ | ||||||||||||||||
Balance at 1 July 2015 | 146,895,714 | 9,363,181 | (117,145,631 | ) | 39,113,264 | |||||||||||||||
Loss for the period | - | - | (2,854,825 | ) | (2,854,825 | ) | ||||||||||||||
Total comprehensive income for the period | 146,895,714 | 9,363,181 | (120,000,456 | ) | 36,258,439 | |||||||||||||||
Transactions with owners in their | ||||||||||||||||||||
capacity as owners: | ||||||||||||||||||||
Reversal of equity to be issued | 8 | (16,500 | ) | - | - | (16,500 | ) | |||||||||||||
Balance at 31 December 2015 | 146,879,214 | 9,363,181 | (120,000,456 | ) | 36,241,939 | |||||||||||||||
Balance at 1 July 2016 | 146,879,214 | 9,363,181 | (124,875,182 | ) | 31,367,213 | |||||||||||||||
Loss for the period | - | - | (3,651,845 | ) | (3,651,845 | ) | ||||||||||||||
Total comprehensive income for the period | 146,879,214 | 9,363,181 | (128,527,027 | ) | 27,715,368 | |||||||||||||||
Transactions with owners in their | ||||||||||||||||||||
capacity as owners: | ||||||||||||||||||||
Transactions costs | 8 | (154,362 | ) | - | - | (154,362 | ) | |||||||||||||
Balance at 31 December 2016 | 146,724,852 | 9,363,181 | (128,527,027 | ) | 27,561,006 |
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
9 |
Prana Biotechnology Limited
Consolidated statement of cash flows
For the half-year 31 December 2016
31 December | 31 December | |||||||||||
2016 | 2015 | |||||||||||
Notes | A$ | A$ | ||||||||||
Cash flows from operating activities | ||||||||||||
Payments to suppliers and employees | (5,456,038 | ) | (7,507,761 | ) | ||||||||
Interest received | 81,439 | 73,221 | ||||||||||
R&D tax refund | 4,753,646 | - | ||||||||||
Grants | - | 56,000 | ||||||||||
Net cash (outflow) from operating activities | 11 | (620,953 | ) | (7,378,540 | ) | |||||||
Cash flows from investing activities | ||||||||||||
Payments for property, plant and equipment | (22,159 | ) | (1,736 | ) | ||||||||
Net cash (outflow) from investing activities | (22,159 | ) | (1,736 | ) | ||||||||
Cash flows from financing activities | ||||||||||||
Transaction costs relating to issue of equity | (154,362 | ) | - | |||||||||
Net cash (outflow) from financing activities | (154,362 | ) | - | |||||||||
Net (decrease) in cash and cash equivalents | (797,474 | ) | (7,380,276 | ) | ||||||||
Cash and cash equivalents at the beginning of the financial year | 28,593,538 | 34,909,574 | ||||||||||
Effects of exchange rate changes on cash and cash equivalents | 545,697 | 1,377,245 | ||||||||||
Redemption of security deposit | - | 152,603 | ||||||||||
Cash and cash equivalents at end of period | 28,341,761 | 29,059,146 |
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
10 |
Prana Biotechnology Limited
Notes to the consolidated financial statements
31 December 2016
1 Basis of preparation of half-year report
This condensed consolidated interim report for the half-year reporting period ended 31 December 2016 has been prepared in accordance with Accounting Standard AASB 134Interim Financial Reportingand theCorporations Act 2001. This interim financial report also complies with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).
This condensed consolidated interim report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2016 and any public announcements made by Prana Biotechnology Limited during the interim reporting period in accordance with the continuous disclosure requirements of theCorporations Act 2001.
The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period. There were no new accounting standards or interpretations adopted by the Group during this reporting period.
2 Significant estimates and assumptions
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that may have a financial impact on the entity and that are believed to be reasonable under the circumstances.
The group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial period are discussed below.
(a) Going concern
The Group is a development stage medical biotechnology company and as such expects to be utilising cash until the results of its research activities have become marketable. For the six months ended 31 December 2016, the Group incurred an operating loss of $3,651,845 (2015: $2,854,825) and an operating cash outflow of $620,953 (2015: $7,378,540). As at 31 December 2016 the net assets of the Group stood at $27,561,006 (30 June 2016: $31,367,213) and the cash position has decreased to $28,341,761 from $28,593,538 at 30 June 2016.
Cash on hand at 31 December 2016 plus projected operating inflows are considered sufficient to meet the Group’s forecast cash outflows for at least 12 months from the date of this report. While there is an inherent uncertainty in the Group’s cash flow forecast in relation to the proposed expenditure on research and development which may impact the forecast cash position, the Directors believe the Group will be able to maintain sufficient cash reserves through a range of options, including:
· The Group continues to pursue raising additional funds through alternative funding structures and has a strong history of raising capital. The Group had an existing “at the market” (ATM) facility through which it could raise additional funds of up to US$44.5 million by the sale of American Depositary Receipts (“ADRs”). This facility, established through the filing of a shelf registration statement on Form F-3 with the United States Securities and Exchange Commission in November, 2014 has been a successful source of raising funds. In prior reporting periods, the Group has raised A$46.5 million (US$42.5 million) under this and a previous ATM facility.
· The Group has on issue a total of 19.4 million unlisted, unexercised options. The options have exercise prices ranging from A$0.25 to A$1.12. If all unlisted options were exercised, the Group would receive consideration of A$7.5 million in total. Although the exercise of options may be available, it is not in the Group’s control to receive this consideration.
· Notwithstanding, in the event that the Group will not have sufficient funds to effect its current plans through the above mentioned methods, the Group has the ability to scale down its operations and prioritise its research and development programs.
11 |
Prana Biotechnology Limited
Notes to the consolidated financial statements
31 December 2016
(continued)
2 Significant estimates and assumptions (continued)
(a) Going concern (continued)
Additionally, the Group has recorded a 2017 receivable at 31 December 2016 in the amount of $1,830,734 from the Australian Tax Office in respect of its 2016 research and development tax incentive claim. The Group expects to receive this amount during the next 12 months.
On this basis, the Directors are satisfied that the Group is a going concern and at this time and are of the opinion that no asset is likely to be realised for an amount less than the amount at which it is recorded in the Consolidated Statement of Financial Position as at 31 December 2016.
Therefore, no adjustments have been made to the financial report relating to the recoverability and classification of the asset carrying amounts or the classification of liabilities that might be necessary should the Group not continue as a going concern.
(b) R&D Tax Incentives
The Australian Government replaced the research and development tax concession with the research and development tax incentive from 1 July 2011. The provisions provide refundable or non-refundable tax offsets. The research and development tax incentive applies to expenditure incurred and the use of depreciating assets in an income year commencing on or after 1 July 2011. A refundable research and development tax incentive offset of 43.5%, equivalent to a deduction of 150%, will be available to eligible small companies with an annual aggregate turnover of less than $20 million. Eligible companies can receive a refundable research and development tax incentive offset of 43.5% of their research and development spending.
The Group’s research and development activities are eligible under an Australian Government tax incentive for eligible expenditure from 1 July 2011. Management has assessed these activities and expenditure to determine which are likely to be eligible under the incentive scheme. For the period to 31 December 2016 the Group has recorded an item in other income of $1,830,734 (2015: $2,779,343) to recognise this amount which relates to this period.
(c) Share-based payments
The value attributed to share options and remuneration shares issued is an estimate calculated using an appropriate mathematical formula based on an option-pricing model. The choice of models and the resultant option value require assumptions to be made in relation to the likelihood and timing of the conversion of the options to shares and the value and volatility of the price of the underlying shares.
3 Segment information
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Chief Executive Officer of Prana Biotechnology Limited. For the current and previous reporting periods, the Group operated in one segment, being research into Alzheimer’s disease, Huntington disease and other neurodegenerative disorders.
4 Loss per share
(a) Basic loss per share
31 December | 31 December | |||||||
2016 | 2015 | |||||||
Cents | Cents | |||||||
From continuing operations attributable to the ordinary equity holders of the Group | 0.68 | 0.53 |
12 |
Prana Biotechnology Limited
Notes to the consolidated financial statements
31 December 2016
(continued)
4 Loss per share (continued)
(b) Diluted loss per share
31 December | 31 December | |||||||
2016 | 2015 | |||||||
Cents | Cents | |||||||
From continuing operations attributable to the ordinary equity holders of the Group | 0.68 | 0.53 |
(c) Reconciliation of earnings used in calculating loss per share
31 December | 31 December | |||||||
2016 | 2015 | |||||||
A$ | A$ | |||||||
Basic earnings per share | ||||||||
Loss attributable to the ordinary equity holders of the Group used in calculating basic loss per share: | 3,651,845 | 2,854,825 | ||||||
Diluted earnings per share | ||||||||
Loss attributable to the ordinary equity holders of the Group used in calculating diluted loss per share | 3,651,845 | 2,854,825 | ||||||
Adjustments | - | - | ||||||
Loss attributable to the ordinary equity holders of the Group used in calculating diluted loss per share | 3,651,845 | 2,854,825 |
(d) Weighted average number of shares used as denominator
2016 | 2015 | |||||||
Number | Number | |||||||
Weighted average number of ordinary shares used as the denominator in calculating basic loss per share | 533,891,470 | 533,891,470 |
Options that are considered to be potential ordinary shares are excluded from the weighted average number of ordinary shares used in the calculation of basic loss per share. Where dilutive, potential ordinary shares are included in the calculation of diluted loss per share. All the options on issue do not have the effect to dilute the loss per share. Therefore, they have been excluded from the calculation of diluted loss per share.
13 |
Prana Biotechnology Limited
Notes to the consolidated financial statements
31 December 2016
(continued)
5 Revenue and other income
31 December | 31 December | |||||||
2016 | 2015 | |||||||
A$ | A$ | |||||||
Revenue from ordinary activities | ||||||||
Interest income | 72,883 | 77,328 | ||||||
72,883 | 77,328 | |||||||
Other income | ||||||||
R&D Tax Incentive | 1,830,734 | 2,779,343 | ||||||
Other grants | - | 51 | ||||||
1,830,734 | 2,779,394 |
6 Loss for the period
31 December | 31 December | |||||||
2016 | 2015 | |||||||
A$ | A$ | |||||||
Profit before income tax includes the following specific expenses: | ||||||||
General and administration expenses | ||||||||
Depreciation on fixed assets | 10,516 | 12,764 | ||||||
Employee expenses (non R&D related) | 578,134 | 490,946 | ||||||
Consultant and director expenses | 383,963 | 361,170 | ||||||
Audit, internal control and other assurance expenses | 107,240 | 108,226 | ||||||
Corporate compliance expenses | 212,316 | 209,267 | ||||||
Office rental | 99,150 | 98,227 | ||||||
Other administrative and office expenses | 638,363 | 678,553 | ||||||
2,029,682 | 1,959,153 | |||||||
Research and development expenses | ||||||||
Employee expenses | 849,366 | 867,033 | ||||||
Other research and development expenses | 2,983,048 | 4,051,856 | ||||||
3,832,414 | 4,918,889 | |||||||
Other gains and losses | ||||||||
Foreign exchange gain | (496,019 | ) | (1,318,999 | ) |
14 |
Prana Biotechnology Limited
Notes to the consolidated financial statements
31 December 2016
(continued)
7 Net tangible assets
31 December | 30 June | |||||||
2016 | 2016 | |||||||
A$ | A$ | |||||||
Net tangible assets | 27,561,006 | 31,367,213 | ||||||
Weighted average number of ordinary shares used as the denominator in calculating basic loss per share | 533,891,470 | 533,891,470 | ||||||
Net tangible assets per shares (cents) | 5.16 | 5.88 |
8 Contributed equity
31 December | 30 June | 31 December | 30 June | |||||||||||||
2016 | 2016 | 2016 | 2016 | |||||||||||||
Shares | Shares | A$ | A$ | |||||||||||||
533,891,470 (30 June 2016: 533,891,470) fully paid ordinary shares | 533,891,470 | 533,891,470 | 144,023,208 | 144,177,570 | ||||||||||||
Nil (30 June 2016 : Nil) options over fully paid ordinary shares | - | - | 2,701,644 | 2,701,644 | ||||||||||||
533,891,470 | 533,891,470 | 146,724,852 | 146,879,214 |
(a) Fully paid ordinary shares
31 December | 30 June | 31 December | 30 June | |||||||||||||
2016 | 2016 | 2016 | 2016 | |||||||||||||
Shares | Shares | A$ | A$ | |||||||||||||
Opening balance | 533,891,470 | 533,891,470 | 144,177,570 | 144,177,570 | ||||||||||||
Capital raising costs | - | - | (154,362 | ) | - | |||||||||||
533,891,470 | 533,891,470 | 144,023,208 | 144,177,570 |
(b) Options over fully paid ordinary shares
31 December | 30 June | 31 December | 30 June | |||||||||||||
2016 | 2016 | 2016 | 2016 | |||||||||||||
Options | Options | A$ | A$ | |||||||||||||
Opening balance | - | - | 2,701,644 | 2,701,644 | ||||||||||||
Movement during the period | - | - | - | - | ||||||||||||
- | - | 2,701,644 | 2,701,644 |
15 |
Prana Biotechnology Limited
Notes to the consolidated financial statements
31 December 2016
(continued)
9 Reserves
31 December | 30 June | |||||||
2016 | 2016 | |||||||
A$ | A$ | |||||||
19,395,582 (30 June 2016: 19,395,582) options over fully paid ordinary shares | 7,394,184 | 7,394,184 | ||||||
Nil (30 June 2016: nil) options over ADRs | 1,515,434 | 1,515,434 | ||||||
Nil (30 June 2016: nil) warrants over ADRs | 453,563 | 453,563 | ||||||
9,363,181 | 9,363,181 |
(a) Options over fully paid ordinary shares
31 December | 30 June | |||||||
2016 | 2016 | |||||||
A$ | A$ | |||||||
Movements: | ||||||||
Opening balance | 7,394,184 | 7,394,184 | ||||||
Movement during the period | - | - | ||||||
7,394,184 | 7,394,184 |
(b) Options over ADRs
31 December | 30 June | |||||||
2016 | 2016 | |||||||
A$ | A$ | |||||||
Movements: | ||||||||
Opening balance | 1,515,434 | 1,515,434 | ||||||
Movement during the period | - | - | ||||||
1,515,434 | 1,515,434 |
(c) Warrants over ADRs
31 December | 30 June | |||||||
2016 | 2016 | |||||||
A$ | A$ | |||||||
Movements: | ||||||||
Opening balance | 453,563 | 453,563 | ||||||
Movement during the period | - | - | ||||||
453,563 | 453,563 |
16 |
Prana Biotechnology Limited
Notes to the consolidated financial statements
31 December 2016
(continued)
10 Financial instruments measured at fair value
The financial instruments recognised at fair value in the Statement of Financial Position have been analysed and classified using a fair value hierarchy reflecting the significance of the inputs used in making the measurements. The fair value hierarchy consists of the following levels:
· | quoted prices in active markets for identical assets or liabilities (Level 1); |
· | inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices) (Level 2); and |
· | inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3). |
During the period, none of the Group’s assets and liabilities had their fair value determined using the fair value hierarchy. No transfers between the levels of the fair value hierarchy occurred during the current or previous periods.
11 Reconciliation of profit after income tax to net cash flow from operating activities
31 December | 31 December | |||||||
2016 | 2015 | |||||||
A$ | A$ | |||||||
Profit for the period | (3,651,845 | ) | (2,854,825 | ) | ||||
Depreciation and amortisation | 10,516 | 13,186 | ||||||
Gain on fair value of financial liabilities | - | (11,487 | ) | |||||
Non-cash employee benefits expense - share-based payments | - | (16,500 | ) | |||||
Net loss on sale of plant & equipment | - | 71 | ||||||
Net gain loss from foreign exchange differences | (545,697 | ) | (1,377,245 | ) | ||||
Change in operating assets and liabilities: | ||||||||
Increase in other provisions | 120,945 | 23,035 | ||||||
Decrease/(increase) in trade debtors | 2,940,203 | (2,727,764 | ) | |||||
Decrease/(increase) in other current assets | 133,696 | (46,202 | ) | |||||
Increase/(decrease) in trade creditors | 371,229 | (380,809 | ) | |||||
Net cash inflow (outflow) from operating activities | (620,953 | ) | (7,378,540 | ) |
12 Related party transactions
Prof. Ira Shoulson provides consulting services to Prana Biotechnology Limited in a separate capacity to his position as Non-Executive Director. Prof. Ira Shoulson was appointed as Non-Executive Director on 13 May, 2014. Total cash compensation of $146,755 was paid to Prof. Ira Shoulson for the period 1 July 2016 to 31 December 2016 (2015: $133,082) in his capacity as a consultant to the Group.
There were no other related party transactions other than those related to Director and Key Management Personnel remuneration and equity and transactions by the parent with its subsidiaries.
13 Events occurring after the reporting period
No matter or circumstance has occurred subsequent to period end that has significantly affected, or may significantly affect, the operations of the group, the results of those operations or the state of affairs of the group or economic entity in subsequent financial periods.
17 |
Prana Biotechnology Limited
Directors’ declaration
31 December 2016
In the directors’ opinion:
(a) | the interim financial statements and notes set out on pages 7 to 17 are in accordance with theCorporations Act 2001, including: |
(i) | complying with Accounting Standards, theCorporations Regulations 2001and other mandatory professional reporting requirements, and |
(ii) | giving a true and fair view of the consolidated entity’s financial position as at 31 December 2016 and of its performance for the half-year on that date, and |
(b) | there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable, and |
(c) | at the date of this declaration, there are reasonable grounds to believe that the members of the extended closed group identified in note 7 will be able to meet any obligations or liabilities to which they are, or may become, subject by virtue of the deed of cross guarantee described in note 7. |
The directors have been given the declarations by the chief executive officer and chief financial officer required by section 295A of theCorporations Act 2001.
This declaration is made in accordance with a resolution of directors.
/s/ Geoffrey Kempler
Mr. Geoffrey Kempler
Director
Melbourne
24 February 2017
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