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Amplia Therapeutics Limited
ACN 165 160 841
Contents
Chairman’s Letter
CEO Report
Financial Report
Directors’ Report
Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss
and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Financial Statements
Independent Auditor’s Report
Shareholder Information
Corporate Directory
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Chairman’s Letter
Dear Shareholders
It is my privilege and pleasure, on behalf of your Board, to share with you the Amplia
Therapeutics 2021 Annual Report. It has been a year overshadowed by the COVID pandemic
and the challenges that it has provided for individuals, families, communities and companies.
Despite the challenges, your Company has reached that very important inflexion point for a
drug development biotech. In the past year we have moved from planning to be a clinical
development company to being a clinical development company and completing our first
clinical trial in line with timelines and budget.
Our small but growing team is highly motivated by the opportunity to develop and deliver new
effective therapies to patients in disease areas that are still poorly served by existing treatments.
You will be aware that we intend to move quickly to testing AMP45 in patients with pancreatic
cancer. One of the 10 most diagnosed cancers in Australia, delayed diagnosis and very limited
response to current therapies results in a five-year survival rate of only around 10%, one of the
lowest survival rates of all cancer types. Our research collaboration with the Garvan Institute
is allowing us to bring together new ways of combining our new drug, AMP945, with existing
therapies and provide confidence that research results will be translated into positive results
for patients in clinical trials.
We could not have achieved the timely steps to build Amplia into a clinical company without
the support of our shareholders and the investment community. Our major investors have
continued to support us as we raised the next tranche of capital to prepare for our Phase 2 trials
and we welcomed Acorn Capital to our share register in this most recent raise. Your Board and
management team is committed to ensuring that our shareholders have a clear understanding
of our development plans and the key steps along that path and as always to deliver on time
and within budget. Our CEO, John Lambert, and his team continue to do an outstanding job in
all aspects of managing the Company. The market for raising capital is always competitive and
we continue to be very careful and efficient with raising capital to enhance your investment
in Amplia.
Your Board has welcomed a new Director since our balance date on 31 March. Mrs Jane Bell
brings a broad corporate and legal background and experience to the Board and we are
benefiting from her contributions to our governance and decisions. We continue to monitor
and assess the skills matrix across the Board as we expand our clinical activities and source the
capital to provide the resources required for the continued growth of our Company.
I want to recognise the ongoing leadership of John Lambert, our CEO and Managing Director.
John has been assembling a talented team and he and his team of employees and advisers
continue to move Amplia along a successful path to delivering new drugs for patients.
My sincerest thanks go to my fellow directors for all their input, insights and advice over
the past year. We are all committed to the continued success of your Company.
To you, our shareholders, thank for your ongoing support and investment in Amplia’s vision
to develop and deliver new cancer and fibrosis treatment options for patients in need.
Yours sincerely,
Dr Warwick B Tong
Chairman
1
Annual Report 2021 CEO Report
In a year that has seen traditional markers of time and business practices change, due to the challenges
of the COVID-19 pandemic, I am proud to say that our Company has continued to deliver against our
projected milestones.
Taking our lead product, AMP945, into a Phase 1 clinical trial late last year was a pivotal milestone for our
Company. Our team worked methodically and with great care to complete all preparatory activities for the
initial safety trial, on time and within budget. This included the necessary manufacturing and toxicology
studies required before first-in-human trials, as well as working with our selected Phase 1 unit, Nucleus
Network, to establish the trial, obtain ethics approval and recruit participants. I again take this opportunity
to thank the volunteers who participated in this important clinical trial.
The data released from this study supports our planned Phase 2 clinical trials of AMP945 in patients with
hard-to-treat cancers and fibrotic diseases, including pancreatic cancer and idiopathic pulmonary fibrosis.
We already have established nonclinical proofs of concept for these trials – together with essential buy-in
from clinicians to help engage and recruit patients for these studies.
Looking ahead, we are focusing our attention on the critical planning, project management and trial protocol
design, which are essential for the establishment and success of these Phase 2 studies. This includes regular
engagement with our network of expert advisors in readiness for interactions with key regulators, including
the FDA, to ensure we can meet the requirements of potential drug registration in future.
Separately, we are progressing further nonclinical studies to assess the full potential of AMP886, a highly
potent inhibitor of FAK that also inhibits two other validated disease targets. This will include further
assessment in a range of animal models of different cancer and fibrotic diseases to identify future
development, partnering, and licensing opportunities.
We are backed by an experienced network of researchers engaged through both our founding associations
and a new partnership with The Garvan Institute of Medical Research. By leveraging the Garvan’s deep
understanding of the different biological roles that FAK can play, we aim to optimise the design of our
planned clinical trials in cancer patients, giving Amplia’s FAK inhibitors the best chance for success.
Our internal management team is also expanding. We are delighted to have welcomed Dr Mark Devlin as
our Chief Scientific Officer and Dr Rhiannon Jones as Director of Operations – both are highly skilled and
devoted colleagues with solid track records in translational research and management. To our Board, we have
welcomed Jane Bell who is a respected and capable finance and legal advisor and who is already providing
sound support and counsel. We have also recruited additional specialist consultants and advisors to support
our immediate growth.
On a more personal note, none of the year’s achievements would have been possible without the support
of our shareholders, both new and original, institutional and retail. Our vision is to continue to grow Amplia
for the benefit of both shareholders and the patients we aim to help. We are most grateful for your ongoing
support as we progress towards these goals.
Dr John Lambert
CEO and Managing Director
2
Amplia Therapeutics Limited Financial Report
for the year ended 31 March 2021
Amplia Therapeutics Limited
ACN 165 160 841
Please leave as is –
already typeset
Contents
Directors’ Report
Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss
and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Financial Statements
Independent Auditor’s Report
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3
Annual Report 2021 Directors’ Report
for the year ended 31 March 2021
Your directors present their report on Amplia Therapeutics Limited (the “Company” or “Amplia”) and its
subsidiaries (together the “Group”) for the year ended 31 March 2021.
DIRECTORS
The names of directors in office at any time during or since the financial year are:
Warwick Tong
Jane Bell (appointed 12 April 2021)
Christopher Burns
John Lambert
Robert Peach
INFORMATION ON DIRECTORS AND COMPANY SECRETARY
Details of the directors’ qualifications, experience and responsibilities, for directors as at the date of this report,
are detailed below:
Warwick Tong (MB ChB MPP GAICD) – Independent Non Executive Director and Chair
Dr. Tong is a NZ trained physician with more than 25 years’ experience in the Pharmaceutical and
Biotechnology industry. After his early career in General Medical Practice Warwick has held a wide variety
of roles in the pharmaceutical and biotech industry in NZ(Glaxo) Singapore (GlaxoWellcome) London (GSK),
Boston (Surface Logix) and Melbourne (CTx - Cancer Therapeutics CRC). Warwick currently serves as director
of Aculeus Therapeutics Pty Ltd, CannaPacific Pty Ltd and its affiliate e3D Pharma Pty Ltd. He is a member of
the Strategic Advisory Board of the Maurice Wilkins Centre in Auckland NZ and of the CSIRO Manufacturing
Business Advisory Committee. Warwick is a former CEO and director of CTx, director and Chair of the CTx
commercialisation company, CTxONE, and director and Chair of BioMedVic. Warwick graduated in Medicine
at the University of Auckland, holds a Master of Public Policy from Victoria University, Wellington, New
Zealand and is a Graduate of the Australian Institute of Company Directors. Warwick was appointed as a Non-
Executive Director on the 4th of May 2018 and Chairman on 25 May 2018. Warwick is a member of the Audit
Committee and also a Director of the Company’s wholly owned subsidiary Amplia Therapeutics (UK) LTD.
Jane Bell (BEc LLB LLM (Lond) FAICD) – Independent Non Executive Director
Mrs Bell is a banking and finance lawyer and non-executive director with more than 30 years’ experience in
leading law firms, financial services and corporate treasury operations gained living in Melbourne, London,
Toronto, San Francisco and Brisbane. Jane has been a non-executive director since 2002, serving on 13 boards
including nine health and medical research boards. Jane currently serves as Deputy Chair of Monash Health,
Director of Jessie McPherson Private Hospital, Chair of the Community Advisory Group of the Melbourne
Genomics Health Alliance and is a Tribunal Member of the Administrative Appeals Tribunal. Jane is a former
Chair of Melbourne Health (Royal Melbourne Hospital), Chair of Biomedical Research Vic, Deputy Chair of
Westernport Water Corporation, Director of UCA Funds Management, WorkSafe Victoria, Hudson Institute
of Medical Research-Monash Institute of Medical Research-Prince Henry’s Institute of Medical Research,
Queensland Institute of Medical Research Trust, Australian Red Cross (Qld) and Victorian Women’s Housing
Association. Jane holds a Master of Laws from Kings College, London, Bachelor of Laws from the University
of Melbourne, Bachelor of Economics from Monash University and is a Fellow of the Australian Institute
of Company Directors. Jane was appointed as a Non-Executive Director on the 12 April 2021 and was also
appointed Chair of the Audit Committee.
Christopher Burns (B.Sc. (Hons) PhD FRACI FRSC GAICD) – Independent Non Executive
Director
Dr Burns is an experienced drug discovery leader having worked in various roles in pharma, biotech
and academia for 25 years. After completing a PhD in Organic Chemistry at the University of Melbourne
Chris undertook post-doctoral studies in the USA before moving to Pfizer UK, where he worked on a
variety of drug discovery projects. After 5 years he returned to Australia as a Research Fellow at the
4
Amplia Therapeutics Limited University of Sydney with the CRC for Molecular Engineering and Technology and after two years moved to
the biotechnology company Ambri as Head of Chemistry. Chris then moved to the Melbourne-based biotech
as Head of Medicinal Chemistry and later as Research Director. During this time he led teams in the discovery
of two anti-cancer agents that have entered clinical trial, including the drug momelotinib which successfully
completed Phase III studies. Most recently Chris was a Laboratory Head at the Walter and Eliza Hall Institute
of Medical Research in Melbourne and currently holds executive roles with privately held biotechs MecRx,
Certa Therapeutics and OccuRx. Dr Burns is the inventor on over 30 patents and a co-author on over 50
scientific publications and is a fellow of the Royal Society of Chemistry (UK) and the Royal Australian Chemical
Institute. Chris was appointed as a Non-Executive Director on the 4th of May 2018 and was Chairman of the
Audit Committee during the year ended 31 March 2021.
John Lambert (B.Sc. (Hons) PhD GAICD) – CEO & Managing Director
Dr Lambert was appointed CEO on 24 June 2019 and Managing Director on 6 February 2020. John has more
than 18 years of drug discovery and development experience. His prior appointments included leadership
roles in Drug Development, Operations Management and Drug Discovery (Biota Pharmaceuticals), primarily
working on the development of respiratory antiviral drugs. As a Senior Director at Medicines Development
for Global Health, John was a member of the team that received approval in 2018 from the US FDA for
moxidectin as a treatment for river blindness. Prior to working in industry John was an academic researcher
in organic, medicinal and biological chemistry (University of Melbourne, ANU and Harvard University).
John is an experienced manager of both in early and late development of therapeutics and has built and
led multidisciplinary project teams tasked with the objective of delivering clinical proof-of-concept for
new products. As such, his experience spans the entire spectrum of drug development from design of
development strategy through project management, manufacture, formulation, pre-clinical and clinical
development and regulatory affairs.
Robert Peach (PhD) – Independent Non Executive Director
Dr Peach has 30 years of drug discovery and development experience in the Pharmaceutical and
Biotechnology industry. In 2009 he co-founded Receptos Limited, becoming Chief Scientific Officer and
raising US$59M in venture capital and US$800M in an IPO and three subsequent follow-on offerings. In
August 2015 Receptos was acquired by Celgene for US$7.8B. Robert held senior executive and scientific
positions in other companies including Apoptos, Biogen Idec, IDEC and Bristol-Myers Squibb, supporting in-
licensing, acquisition and venture investments. His extensive drug discovery and development experience in
autoimmune and inflammatory diseases, and cancer has resulted in multiple drugs entering clinical trials and
3 registered drugs. He is currently on the Board of Directors of AdAlta Pty Limited and Rekover Therapeutics,
and serves on the Scientific Advisory Board of Eclipse Bioinnovations. Robert is the co-author of 70 scientific
publications and book chapters, and 26 patents and patent applications. He was educated at the University
of Canterbury and the University of Otago, New Zealand. He was appointed as a Non-Executive Director on
2 September 2015 and is Chairman of the Remuneration Committee.
COMPANY SECRETARY
Andrew Cooke (LLB) – Company Secretary
Mr Cooke holds a law degree from Sydney University and has extensive experience in law, corporate finance,
governance and compliance. Andrew has been the Company Secretary since 11 October 2013 and is also a
Director of the Company’s wholly owned subsidiary Amplia Therapeutics (UK) LTD.
PRINCIPAL ACTIVITIES
The principal activity of the Company is development of its Focal Adhesion Kinase (FAK) inhibiting
drug candidates AMP886 and AMP945. These assets represent highly attractive compounds for clinical
development possessing excellent potency and drug-like properties, biological selectivity, bioavailability, and
manufacturing scale-up potential. The Company is focused on the development of these drug candidates
for potential use in multiple indications including oncology and chronic fibrosis.
5
Annual Report 2021 Directors’ Report
for the year ended 31 March 2021
OPERATING RESULTS
The Group total comprehensive loss after tax for the year ended 31 March 2021 was $2,281,153 (2020: Loss after
tax $2,219,474).
DIVIDENDS PAID OR RECOMMENDED
No dividends were paid or declared during the financial year or after the reporting date.
REVIEW OF OPERATIONS
During the year ending 31 March 2021, Amplia made significant progress in the development of its key
pharmaceutical asset AMP945, a molecule with promising potential for the treatment of both cancer and
fibrotic diseases. The Company remains committed to the development of inhibitors of FAK. Operational
highlights reported during the year include:
– Second Orphan Drug Designation received from FDA for AMP945 in idiopathic pulmonary fibrosis
– Completion of a preclinical safety program and receipt of ethics committee approval to initiate clinical
studies of AMP945
–
Initiation of dosing in a Phase 1 clinical trial of AMP945 in healthy volunteers
– Establishment of collaboration terms with the Garvan Institute of Medical Research focussed on new
treatments for pancreatic cancer
– Establishment of clinical advisory groups for pancreatic cancer and pulmonary fibrosis
– Receipt of further preclinical evidence supporting the potential utility of AMP945 in cancer and fibrosis
– Conduct of preclinical studies to assess the efficacy of AMP886 in various disease models
In July 2020, the Company raised a total of $3,987,831 through an underwritten, accelerated, entitlement
offer. In addition to being well supported by retail investors, the offer was strongly supported by the
Company’s largest shareholder, Platinum Investment Management Ltd. and a new substantial shareholder,
Blueflag Holdings Pty Ltd. The proceeds from the offer were used to fund the Phase 1 clinical trial of
AMP945, additional non-clinical studies and provide working capital for the Company. In December 2020,
the Company received a Research and Development Tax Incentive Refund of $533,521 as a result of R&D
expenditure incurred during the year ended 31 March 2020.
During the year, Amplia took further steps to broaden its intellectual property position in relation to its key
asset AMP945. In May 2020, the company lodged a new patent application covering the use of AMP945 in
pulmonary fibrosis. If granted, the new application will provide additional patent coverage for the preferred
salt of AMP945 in pulmonary fibrosis to 2040.
In April 2021, Amplia completed dosing of volunteers in its Phase 1 trial of AMP945. Data analysis is ongoing
but initial results indicate that AMP945 is well tolerated and has good pharmaceutical properties.
FINANCIAL POSITION
The Group loss after tax for the year ended 31 March 2021 was $2,281,153 (2020: $2,219,474). This result included
a non-cash share based compensation of $214,432 (2020: $202,835). Since 31 March 2020, the net assets of the
Group have increased by $1,734,194 to be $10,339,959 at 31 March 2021.
Research and development expenses increased to $2,211,822 (2020: $1,071,677). This reflected Amplia’s focus
on progressing lead candidate AMP945 through a Phase 1 clinical trial. R&D activities included costs of the
Phase 1 clinical trial, manufacturing and completion of the preclinical safety studies which enabled the
Phase 1 trial.
6
Amplia Therapeutics Limited General and Administration expenses increased to $1,134,749 (2020: $858,886). Patent and associated
expenses increased to $312,012 (2020: $123,218). This was due primarily to a milestone payment of
US$200,000 to Cancer Research Technology Limited which was due upon commencement of the AMP945
Phase 1 trial.
At balance date the Group held Cash and cash equivalents of $1,848,808 (2020: $1,108,115) and had no debt.
The key intangible asset is the exclusive worldwide license to develop and commercialise the drug candidates
AMP945 and AMP886. This is being carried at the deemed share consideration paid on acquisition i.e.
$7,937,932. The Group continues to believe that the carrying value for these assets at the deemed acquisition
value remains appropriate.
On 1 April 2020 the Company had 66,463,185 shares on issue. During the year 40,409,916 shares were issued
through placements and exercise of options. A total of $4,063,564 was raised through the placements and
exercise of options during the year. An additional 1,099,508 shares were issued to Directors in lieu of fees as
approved by shareholders. The number of shares on issue at 31 March 2021 was 107,972,609.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There has been no significant change in the activities of the Company during the year. Amplia has continued
to be focused on the development of drug candidates AMP886 and AMP945 for application in oncology and
chronic fibrosis indications.
MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
On 10 May 2021 the Company issued 16,585,000 shares @ 23c per share raising $3,814,550. The proceeds of
this capital raise will be used to fund enabling activities for the Company’s planned Phase 2 clinical trials in
pancreatic cancer and pulmonary fibrosis and to provide working capital. The Company has committed to
prime contracts totalling approximately $1,800,000 to be executed over the next 12 months.
Other than the above, no other matter or circumstance has arisen since the end of the financial year which
is not otherwise dealt with in this report or in the Consolidated Financial Statements 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 in subsequent financial years.
FUTURE DEVELOPMENTS
Focal Adhesion Kinase has emerged as an important target in both fibrotic cancers such as pancreatic and
ovarian cancer as well as non-cancer fibrosis such as idiopathic pulmonary fibrosis. The FAK inhibiting assets
AMP886 and AMP945 which are now held by the Group through the acquisition of Amplia in 2018 represent
highly attractive compounds for clinical development possessing excellent potency and drug-like properties,
biological selectivity, bioavailability and manufacturing scale-up potential.
The Group plans to advance the development of these drug candidates as rapidly as possible. Having
completed a Phase 1 clinical trial of AMP945 in healthy volunteers, the Company is now planning Phase
2 clinical studies in pancreatic cancer and pulmonary fibrosis. AMP886 has not yet entered clinical
development.
In March 2020, the World Health Organisation declared the outbreak of COVID-19 as a pandemic. The Group
conducts manufacturing of its drug candidates, which are used for trial purposes, using overseas suppliers.
Continued outbreaks of COVID-19 may cause business disruption to supply of product. There is uncertainty
around the potential consequences of such disruptions and as such the Group is unable to determine if such
disruptions would have a material impact on its operations.
7
Annual Report 2021 Directors’ Report
for the year ended 31 March 2021
ENVIRONMENTAL ISSUES
The Group was in compliance with all the necessary environmental regulations throughout the period and no
related issues have arisen since the end of the financial year to the date of this report.
PROCEEDINGS ON BEHALF OF COMPANY
No person has applied for leave of any court to bring proceedings on behalf of the Group or intervene in any
proceedings to which the Group is a party for the purpose of taking responsibility on behalf of the Group for
all or any part of those proceedings.
REMUNERATION REPORT
The Directors of the Group present the Remuneration Report for non-executive directors, executive directors
and other key management personnel (“KMP”), prepared in accordance with the Corporations Act 2001 and
the Corporations Regulations 2001.
Directors and KMP disclosed in this report
Name
Position
Directors
Warwick Tong
Chairman and Non Executive Director
John Lambert
Chief Executive Officer & Managing Director
Robert Peach
Non Executive Director
Christopher Burns
Non Executive Director
Other KMP
Jeff Carter
Chief Financial Officer (CFO)
Role of the Remuneration Committee
The Remuneration Committee is a committee of the Board. Its primary purpose is to:
– Assist the Board in fulfilling its oversight responsibilities relating to the remuneration of officers, directors,
and executives of the Company.
– Advise the Board regarding the Company’s remuneration philosophies, practices, and procedures.
– Advise the Board regarding key senior management succession planning, including recruiting, hiring,
development, and retention, and termination of key senior executives.
The objective of the Committee, currently comprising Directors Dr Peach (chair) and Dr Burns is to ensure
that remuneration policies and structures are fair and competitive and aligned with the long-term interests
of the Company.
8
Amplia Therapeutics Limited Non-executive directors’ remuneration policy
Fees and payments to non-executive directors reflect the demands, which are made on, and the
responsibilities of, the directors. For the financial year ended 31 March 2021, the Board approved an annual
base fee of $30,000 for the Chairman and $20,000 for the other non-executive directors (which also covers
serving on a committee), paid six monthly in arrears. Long term incentives are provided through participation
in the Employee Share Option Plan.
Non-executive directors’ fees are determined within an aggregate directors’ fee pool limit, which is
periodically recommended for approval by shareholders. The fee pool limit was set at $300,000 at the 2014
Annual General Meeting.
There are no retirement allowances for non-executive directors, in line with guidance from the ASX Corporate
Governance Council on non-executive directors’ remuneration. Superannuation contributions to Australian
resident non-executive directors are made where required under the Australian superannuation guarantee
legislation.
Executive remuneration policy
The Remuneration Committee is responsible for approving remuneration packages applicable to executive
directors and other KMP of the Group. The Remuneration Committee is to ensure that the remuneration
package properly reflects the person’s duties and responsibilities and that the remuneration is competitive in
attracting, retaining and motivating people of high quality and standard.
Executive directors of the Group do not receive director’s fees and are not currently provided with retirement
benefits.
Executive directors and KMP are remunerated primarily by means of cash benefits and may receive cash
bonuses based on the achievement of individually set key performance indicators. However, the Group’s need
to preserve cash may result in the cash component of remuneration being insufficient to match that which
is offered by other companies to personnel in comparable positions or with similar skill sets. Accordingly,
the Group may use share options where necessary to mitigate this and to also provide for medium term
shareholder and KMP goal alignment.
To enable share options to be included as part of Director and KMP remuneration, an Employee Share Option
Plan was approved by the Board of Directors 12 November 2013 and subsequently approved by shareholders
at the Company’s Annual General Meeting on 30 August 2019.
9
Annual Report 2021 Directors’ Report
for the year ended 31 March 2021
Directors’ and other Key Management Personnel Remuneration - 31 March 2021
Details of the nature and amount of each element of the remuneration of each Director and KMP for the year
ended 31 March 2021, are shown in the table below:
Short-Term Benefits
Post-Employment
Benefits
Cash
Salary &
Fees
($)
Cash
Bonus
($)
Non-
monetary
Benefits
($)
Super-
annuation
($)
Retire-
ment
benefits
($)
Long
Service
Leave
($)
Share
based
payments
(options)4
($)
Total
($)
2021
Directors
Non Executive
Warwick Tong
Robert Peach
Christopher Burns
Executive
30,0001
20,0001
20,0001
–
–
–
John Lambert2
224,000
129,637
Total Directors
294,000
129,637
KMP
Jeff Carter3
Total KMP
117,300
117,300
–
–
–
–
–
–
–
–
–
–
–
–
25,556
25,556
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
30,000
19,631
39,631
–
20,000
48,489
427,682
68,120
517,313
35,800
153,100
35,800
153,100
1
2
Director fees for the three months to 30 June 2020 were paid in shares as approved by shareholders. The remaining amount
was paid in cash.
Dr Lambert’s annual salary was increased from $180,000 plus statutory superannuation to $260,000 plus statutory
superannuation in September 2020. The cash bonus of $70,137 for the year ended 31 March 2020 was paid during the current
year and an accrual of $59,500 cash bonus for the year ended 31 March 2021 was made. No director fees were paid to Dr
Lambert.
3
Mr Carter’s CFO services are provided by Mr Carter’s service company, Joblak Pty Ltd. The Company entered into a contract for
his services at $7,525 per month plus payment for any excess hours.
4 Share based payments have all been in the form of options.
The Board set no other performance criteria for KMP during the year to 31 March 2021 and no other bonuses
were paid to them.
10
Amplia Therapeutics Limited Directors’ and other Key Management Personnel Remuneration - 31 March 2020
Details of the nature and amount of each element of the remuneration of each Director and KMP for the year
ended 31 March 2020, are shown in the table below:
Short-Term Benefits
Post-Employment
Benefits
Cash
Salary &
Fees
($)
Cash
Bonus
($)
Non-
monetary
Benefits
($)
Super-
annuation
($)
Retire-
ment
benefits
($)
Long
Service
Leave
($)
Share
based
payments
(options)6
($)
Total
($)
30,0001
20,0001
–
20,0001
76,6672
136,9173
160,9734
444,557
90,3005
90,300
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
13,154
13,154
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
30,000
37,281
57,281
–
–
–
20,000
37,281
113,948
62,910
199,827
65,364
239,491
202,836
660,547
–
–
90,300
90,300
2020
Directors
Non Executive
Warwick Tong
Robert Peach
Christian Behrenbruch
Christopher Burns
Andrew Cooke
Executive
Simon Wilkinson
John Lambert
Total Directors
KMP
Jeff Carter
Total KMP
1 Director fees for the twelve months to 31 March 2020 were accrued but payment has been deferred until further notice.
2
3
4
Mr Cooke is also the Company Secretary and this amount includes fees for these services provided by Mr Cooke’s service
company, AJC Corporate Services Pty Ltd, of $5,000 per month i.e. $60,000 p.a. Payment of his director fees to the date of
retirement i.e. $16,667 has been deferred until further notice.
Mr Wilkinson was the CEO to 23 June 2019. This amount includes his annual salary of NZ$230,000 up to 23 September 2019
and a non-executive director fee of $6,667. No director fees were paid to Mr Wilkinson until he became a non-executive
director. From date of retirement Mr Wilkinson may be paid a monthly consulting fee of $1,000.
Dr Lambert’s services were provided by Dr Lambert’s service company, Parallax Consulting Pty Ltd up to his date of
appointment as CEO. On 16 August 2018 the Company entered into an hourly contract for his services for a maximum of
$3,400 per week. On 24 June 2019 Dr Lambert was appointed as CEO and received an annual salary of $180,000 plus statutory
superannuation. No director fees were paid to Dr Lambert.
5
Mr Carter’s CFO services are provided by Mr Carter’s service company, Joblak Pty Ltd. The Company entered into a contract for
his services at $7,525 per month plus payment for any excess hours.
6 Share based payments have all been in the form of options.
The Board set no other performance criteria for KMP during the year to 31 March 2020 and no other bonuses
were paid to them.
11
Annual Report 2021 2021
Other KMP
Jeff Carter
Directors’ Report
for the year ended 31 March 2021
Options issued as part of remuneration for the year ended 31 March 2021
Options may be issued to executives as part of their remuneration. The options are issued to encourage goal
alignment between executives, directors and shareholders.
No options were issued to Directors as part of remuneration during the year ended 31 March 2021. The
following options were issued to KMP’s as part of remuneration during the year ended 31 March 2021.
Date of Issue
Number
Vesting1
Strike Price
Expiry
Fair Value (S)
Total Other KMP
500,000
2-Sep-20
500,000 Immediately
$0.20
2-Sep-25
35,8001
35,800
1
These options were Mr Carter’s first issue of options since the Company acquisition of Amplia Therapeutics Pty Ltd on 26 April
2018. The fair value of the options issued was 7.16 cents each.
No other options were issued to Directors or other KMP’s during the year to 31 March 2021.
Options issued as part of remuneration for the year ended 31 March 2020
No options were issued to Directors as part of remuneration during the year ended 31 March 2020. The
following options issued to KMP’s as part of remuneration during the year ended 31 March 2020.
2020
Date of Issue
Number
Vesting1
Strike Price
Expiry
Fair Value (S)
Other KMP
John Lambert
Total Other KMP
1-Oct-19
1,200,000
1/4 annually
$0.165
24-Jun-24
1,200,000
54,1681
54,168
1
Dr Lambert was appointed as Managing Director on 6 February 2020. These options were issued when he was not a member
of the Board. There are no performance conditions for the vesting of options unless otherwise noted. The Remuneration
Committee decided that time based vesting was the most appropriate form of vesting for the Company. The fair value of the
options issued was 4.51 cents each.
No other options were issued to Directors or other Key Management Personnel during the year to
31 March 2020.
12
Amplia Therapeutics Limited Employment Contracts
John Lambert – CEO & Managing Director
Dr Lambert was appointed CEO on 24 June 2019 and Managing Director on 6 February 2020. His fixed
remuneration is $260,000 per annum plus statutory superannuation. Under the agreement he was
granted 1,200,000 options with an exercise price of $0.165 and an expiry date of 24 June 2024. Either
party may terminate the Employment Agreement by the giving of three month’s written notice to the
other. Dr Lambert has a short term performance incentive of 25% of fixed remuneration plus statutory
superannuation.
Jeff Carter - CFO
On 1 May 2016, the Company entered into a consultancy agreement with Mr Carter’s service company,
Joblak Pty Ltd. Pursuant to the terms of the Agreement, Mr Carter’s company is paid a monthly amount of
$7,525 plus payment for any excess hours for Mr Carter to perform the part time role of Chief Financial Officer
of the Company.
Non Executive Directors
There are engagement letters in place for all non-executive directors.
DIRECTORS’ AND OTHER KEY MANAGEMENT PERSONNEL EQUITY HOLDINGS
(i) Options provided as remuneration and shares issued on the exercise of such options are outlined below.
The terms and conditions of the options issued during the year ended 31 March 2021 can be found above
(“Options Issued as part of Remuneration for the year ended 31 March 2021”). The terms and conditions of
the options issued during the year ended 31 March 2020 can be found above (“Options Issued as part of
Remuneration for the year ended 31 March 2020”).
(ii) The number of unlisted options over ordinary shares in the company held by each director of the company
and other KMP (including related parties) of the Group are set out below including all options that are
vested and exercisable at year end.
Balance at
start of the
year
Granted
during the
year as
compensation
Exercised
during the
year
Other
changes
during the
year
Balance at
the end of
the year
Vested and
exercisable
at year end
Other
2021 - Options
Directors
Non Executive
Warwick Tong
165,000
Christopher Burns
30,000
Robert Peach
980,000
Executive
John Lambert
2,000,000
Total Directors
3,175,000
–
–
–
–
–
Other KMP
Jeff Carter
Total Other KMP
–
–
500,000
500,000
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
165,000
165,000
30,000
30,000
980,000
740,000
2,000,000
725,000
3,175,000
1,660,000
500,000
500,000
500,000
500,000
(iii) The number of shares in the Company held by each director of the company and other KMP (including
related parties) of the Group are set out below
13
Annual Report 2021 Directors’ Report
for the year ended 31 March 2021
2021 – Shares
Directors
Non Executive
Warwick Tong
Balance at
start of the
year
Granted
during the
year as
compensation
Received
during the
year upon
exercise of
options
Other
changes
during the
year
Balance at
the end of
the year
Other
1,991,428
413,7121
Christopher Burns
2,275,237
197,0061
Robert Peach
Executive
John Lambert
Total Directors
Other KMP
Jeff Carter
Total Other KMP
1,056,000
275,8081
100,000
–
5,422,665
886,526
–
–
–
–
–
–
–
–
–
–
–
350,0002
–
–
120,0002
470,000
–
–
–
–
–
2,755,140
2,472,243
1,331,808
220,000
6,779,191
32,0003
302,0814
334,081
32,000
302,081
334,081
1 Received as payment for director fees as approved by shareholders.
2 Received through participation in rights issue and/or Directors’ & Management placement as approved by shareholders.
3 Transfer off market plus participation in rights issue and/or Directors’ & Management placement as approved by shareholders.
4 These shares are held by a superannuation fund which is managed and controlled by a corporate trustee.
OTHER
Loans to Directors and Other Key Management Personnel
There were no loans to any directors of the Company or other KMP of the Group during the financial year
ended 31 March 2021.
Other Transactions with Directors and Other Key Management Personnel
There were no other transactions with directors of the Company or other KMP of the Group during the
financial year.
Consequences of Performance on Shareholder Wealth
In considering the Group’s performance and benefits for shareholder wealth, the Board have regard to the
following indices in respect of the current financial year and the previous four financial years:
Item
EPS (cents)
Dividends (cents)
Net profit/loss ($000)
Share Price – (cents)
2021
2020
2019
2018
2017
(2.41)
–
(4.58)
(4.56)
(19.0)
(33.3)
–
–
–
–
(2,281)
(2,219)
(1,870)
(4,297)
(7,076)
26
6
14
76
765
END OF REMUNERATION REPORT
14
Amplia Therapeutics Limited OPTIONS
At the date of this report unissued shares of the Group under option are:
Expiry Date
31-Mar-22
30-Jun-22
31-Aug-22
31-Aug-23
10-May-24
24-Jun-24
2-Sep-25
2-Sep-25
2-Sep-25
Number
exercised/
lapsed
during year
ended
31 March 2021
–
–
–
–
–
–
–
–
–
–
Exercise
Price ($)
Number as at
31 March 2021
0.59
0.14
0.59
0.59
1,370,000
5,542,079
750,000
960,000
0.4275
–
0.155
1,200,000
0.15
0.20
0.20
720,000
2,000,000
1,000,000
13,542,079
Number
issued/
exercised
post
reporting
date
–
(133,731)
–
–
500,000
(130,000)
–
–
–
236,269
The number of shares under option, on the date of this report, was 13,778,348.
DIRECTORS’ INTERESTS
Particulars of Directors’ interests in shares and options as at the date of this report are as follows:
Warwick Tong
Robert Peach
Christopher Burns
John Lambert
Jane Bell
Ordinary
Shares
Options
2,755,140
165,000
1,331,808
980,000
2,472,243
30,000
350,000
1,870,000
277,163
–
7,186,354
3,045,000
The above table only includes details for Directors that were Directors at the date of this report. Further
information regarding the above interests and net movements throughout the reporting period is disclosed
in Note 9 (Related Parties) to the Financial Statements accompanying this Directors’ Report.
15
Annual Report 2021 Directors’ Report
for the year ended 31 March 2021
MEETINGS OF DIRECTORS
During the financial year, meetings of directors (including committee meetings) were held.
DIRECTORS’ MEETINGS
AUDIT COMMITTEE MEETINGS
REMUNERATION
COMMITTEE MEETINGS
Number
Eligible to
attend
Number
Attended
Number
Eligible to
attend
Number
Attended
Number
Eligible to
attend
Number
Attended
13
13
13
13
13
13
11
13
7
–
7
–
7
–
7
–
–
3
3
–
–
3
3
–
Attendances were:
Warwick Tong
Robert Peach
Christopher Burns
John Lambert
AUDIT COMMITTEE
The Group has an Audit Committee. Details of the composition, role and Terms of Reference of the Audit
Committee are contained in the Statement of Corporate Governance Practices and are available on the
Company’s website at http://www.ampliatx.com/site/About-Us/corporate-governance.
During the reporting period, the Audit Committee consisted of the following Non-executive, Independent
Directors:
Mr Christopher Burns (Chairman)
Mr Warwick Tong
The Group’s lead signing and review External Audit Partner, CEO, CFO and selected consultants attend
meetings of the Audit Committee by standing invitation.
DIRECTORS’ AND AUDITORS’ INDEMNIFICATION
During or since the end of the financial year the company has given an indemnity or entered an agreement to
indemnify, or paid or agreed to pay insurance premiums as follows:
a) The Company entered into Deeds of Indemnity, Insurance and Access in favour of all directors.
b) The Company has paid premiums to insure all directors of the parent entity and officers of the
consolidated entity against liabilities for costs and expenses incurred by them in defending any legal
proceedings arising out of their conduct while acting in the capacity of director or officer of the Company,
other than conduct involving a wilful breach of duty in relation to the Company.
DIRECTORS’ BENEFITS
Since 1 April 2020, no director has received or become entitled to receive a benefit because of a contract
made by the Company, or a related body corporate with a director, a firm of which a director is a member or
an entity in which a director has a substantial financial interest.
This statement excludes a benefit included in the aggregate amount of remuneration received or due and
receivable by directors and shown in the company’s accounts, or the fixed salary of a full-time employee of the
parent entity, controlled entity, or related body corporate.
16
Amplia Therapeutics Limited NON-AUDIT SERVICES
The external auditors, Grant Thornton, were engaged to provide tax compliance and other accounting services
and were paid $7,500 for these services in 2021 (2020 $7,000).
AUDIT INDEPENDENCE
The lead auditor has provided the Auditor’s Independence Declaration under section 307C of the
Corporations Act 2001 (Cth) for the year ended 31 March 2021 and a copy of this declaration forms part of the
Directors’ Report.
Signed in accordance with a resolution of the Board of Directors.
Warwick Tong
Chairman
29 June 2021
John Lambert
CEO & Managing Director
17
Annual Report 2021
Auditor’s Independence Declaration
for the year ended 31 March 2021
Collins Square, Tower 5
727 Collins Street
Melbourne Victoria 3008
Correspondence to:
GPO Box 4736
Melbourne Victoria 3001
T +61 3 8320 2222
F +61 3 8320 2200
E info.vic@au.gt.com
W www.grantthornton.com.au
Auditor’s Independence Declaration
To the Directors of Amplia Therapeutics Limited
In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit of Amplia
Therapeutics Limited for the year ended 31 March 2021, I declare that, to the best of my knowledge and belief, there have
been:
a
b
no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
no contraventions of any applicable code of professional conduct in relation to the audit.
Grant Thornton Audit Pty Ltd
Chartered Accountants
T S Jackman
Partner – Audit & Assurance
Melbourne, 29 June 2021
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
www.grantthornton.com.au
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients
and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International
Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are
delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one
another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to
Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to
Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation.
18
Amplia Therapeutics Limited
Consolidated Statement of Profit or Loss
and Other Comprehensive Income
for the year ended 31 March 2021
Other operating income
Total other operating income
Research and development expenses
Patent and associated expenses
General and administration expenses
Depreciation & amortisation
Share based compensation (employee & non-employee)
Operating deficit before financing costs
Interest income
Net financial expense
Loss before income tax expense
Income tax expense/(benefit)
Note
4
Year ended
March 2021
$
Year ended
March 2020
$
1,591,241
1,591,241
34,227
34,227
(2,211,822)
(1,071,677)
(312,012)
(123,218)
(1,134,749)
(858,886)
(672)
(801)
(214,432)
(202,835)
(3,873,687)
(2,223,190)
1,293
1,293
3,716
3,716
(2,281,153)
(2,219,474)
12
–
–
Loss after income tax expense/(benefit)
(2,281,153)
(2,219,474)
Other comprehensive income/(loss)
Items that may be subsequently reclassified to profit/loss
Exchange differences of foreign exchange translation
Total comprehensive loss
–
–
(2,281,153)
(2,219,474)
Basic and diluted earnings per share (weighted)
18
(2.4)
(4.6)
The accompanying notes form part of these financial statements
19
Annual Report 2021 Consolidated Statement of Financial Position
for the year ended 31 March 2021
Current assets
Cash and cash equivalents
Prepayments
Research & development tax incentive receivable
Other current assets
Total current assets
Non current assets
Property, plant and equipment
Intangible assets
Total non current assets
Total assets
Current liabilities
Accounts payable and accrued liabilities
Total current liabilities
Non current liabilities
Total liabilities
Equity
Paid-in capital
Reserves
Accumulated losses
Total equity
Total equity and liabilities
The accompanying notes form part of these financial statements
Year ended
March 2021
$
Year ended
March 2020
$
Note
3
1,848,408
1,108,115
45,979
1,000,000
41,299
24,420
34,227
10,894
2,935,686
1,177,656
5,471
797
7,937,932
7,937,932
7,943,403
7,938,729
10,879,089
9,116,385
539,130
510,620
539,130
510,620
539,130
510,620
5
6
7
15
136,554,307
132,903,135
(1,007,113)
(1,371,288)
(125,207,235)
(122,926,082)
10,339,959
8,605,765
10,879,089
9,116,385
20
Amplia Therapeutics Limited
Consolidated Statement of Changes in Equity
for the year ended 31 March 2021
Paid-in
Capital
$
Share
Option
Reserve
$
Foreign
Currency
Translation
$
Accumulated
Losses
$
Total equity
$
Balance at 1 April 2019
130,945,206
454,812
(1,818,617)
(120,916,926)
8,664,475
(Loss) after income tax for the year
Other comprehensive (loss) after tax
Total comprehensive (loss)
Issue of shares
Capital raising/issuing costs
Expired/lapsed options
Issue/vesting of share options
–
–
–
2,149,413
(191,484)
–
–
–
–
–
–
–
(210,318)
202,835
1,957,929
(7,483)
–
–
–
–
–
–
–
–
(2,219,474)
(2,219,474)
–
–
(2,219,474)
(2,219,474)
–
–
2,149,413
(191,484)
210,318
–
–
202,835
(2,009,156)
(58,710)
Balance at 31 March 2020
132,903,135
447,329
(1,818,617)
(122,926,082)
8,605,765
(Loss) after income tax for the year
Other comprehensive (loss) after tax
Total comprehensive (loss)
Issue of shares
Options exercised
–
–
–
4,127,358
75,733
–
–
–
–
–
Capital raising/issuing costs
(551,919)
149,743
Expired/lapsed options
Issue/vesting of share options
–
–
–
214,432
3,651,172
364,175
–
–
–
–
–
–
–
–
–
(2,281,153)
(2,281,153)
–
–
(2,281,153)
(2,281,153)
–
–
–
–
–
4,127,358
75,733
(402,176)
–
214,432
(2,281,153)
1,734,194
Balance at 31 March 2021
136,554,307
811,504
(1,818,617)
(125,207,235)
10,339,959
The accompanying notes form part of these financial statements
21
Annual Report 2021 Consolidated Statement of Cash Flows
for the year ended 31 March 2021
Cash flows from operating activities
Interest received
R&D incentive received
Government Covid-19 bonuses
Payments to suppliers
Payments to employees
Year ended
March 2021
$
Year ended
March 2020
$
Note
1,852
567,748
57,720
3,158
–
–
(2,935,297)
(1,569,367)
(608,278)
(521,768)
Net cash outflow from operating activities
14
(2,916,255)
(2,087,977)
Cash flows from investing activities
Purchase of property, plant and equipment
Disposal of property, plant and equipment
Net cash inflow/(outflow) from investing activities
Cash flows from financing activities
Issue of shares
Capital raising/issuing listing costs
Net cash inflow from financing activities
Net increase/(decrease) in cash held
Foreign exchange effect on cash and cash equivalent balances
Cash at the beginning of the year
Cash at the end of the year
Cash balances in the statement of financial position
Cash and cash equivalents
Closing cash balance
The accompanying notes form part of these financial statements
(5,347)
–
(5,347)
–
–
–
4,063,564
2,149,413
(400,258)
(191,484)
3,663,306
1,957,929
741,704
(130,048)
(1,411)
(2,746)
1,108,115
1,240,909
1,848,408
1,108,115
3
1,848,408
1,848,408
1,108,115
1,108,115
22
Amplia Therapeutics Limited Notes to the Financial Statements
for the year ended 31 March 2021
Table of Notes
1. Summary of significant accounting policies
2. Critical Estimates and Judgements
3. Cash and Cash Equivalents
4. Operating Loss
5. Property, Plant & Equipment
6.
Intangible Assets
7. Accounts Payable and Accrued Liabilities
8. Subsidiaries
9. Related Parties
10. Share Based Compensation
11. Segment Information
12. Provision for Income Tax
13. Commitments and Contingent Liabilities
14. Reconciliation of Net Deficit after Taxation to Cash Flows from Operating Activities
15. Shareholders’ Equity
16. Financial Instruments
17. Auditors Remuneration
18. Earnings Per Share
19. Capital Management
20. Subsequent Events
24
29
30
30
31
32
32
32
33
33
35
35
37
37
38
39
40
41
41
41
23
Annual Report 2021 Notes to the Financial Statements
for the year ended 31 March 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of Preparation
The financial statements presented are for the entity Amplia Therapeutics Limited and its controlled entities
as a consolidated entity (the “Group”).
The financial statements have been prepared in accordance with Australian Accounting Standards, other
authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.
Compliance with Australian Accounting Standards ensures the consolidated financial statements and notes
of the Group comply with International Financial Reporting Standards (‘IFRS”). Amplia is a for profit entity for
the purposes of reporting under Australian Accounting Standards.
The financial statements have been prepared on an accruals basis and are based on historical costs and do
not take into account changing money values or, except where stated, current valuations of financial assets.
Cost is based on the fair values of the consideration given in exchange for assets. The accounting policies
have been consistently applied, unless otherwise stated.
In applying Australian Accounting Standards management must make judgement regarding carrying values
of assets and liabilities that are not readily apparent from other sources. Assumptions and estimates are
based on historical experience and any other factors that are believed reasonable in light of the relevant
circumstances. These estimates are reviewed on an ongoing basis and revised in those periods to which the
revision directly affects.
All accounting policies are chosen to ensure the resulting financial information satisfies the concepts of
relevance and reliability.
(b) Principles of Consolidation
The consolidated financial statements are prepared by combining the financial statements of all the entities
that comprise the Group, being the company (the parent entity) and its subsidiaries as defined in Accounting
Standard AASB 10 Consolidated Financial Statements. Consistent accounting policies are employed in the
preparation and presentation of the consolidated financial statements.
The consolidated financial statements include the information and results of each subsidiary from the date
on which the company obtains control and until such time as the company ceases to control such entity. In
preparing the consolidated financial statements, all intercompany balances and transactions, and unrealised
profits arising with the consolidated entity are eliminated in full.
A list of controlled entities is found in Note 8 of the Financial Statements.
(c) Cash and Cash Equivalents
Cash and cash equivalents comprise of cash on hand, at call deposits with banks or financial institutions,
bank bills and investments in money market instruments where it is easily convertible to a known amount of
cash and subject to an insignificant risk of change in value.
(d) Property, Plant and Equipment
Property, plant and equipment are measured at cost less accumulated depreciation and impairment losses.
Cost includes expenditure that is directly attributable to the acquisition of the asset. In the event settlement
of all or part of the purchase consideration is deferred, cost is determined by discounting the amounts
payable in the future to their present value as at the date of acquisition.
24
Amplia Therapeutics Limited Depreciation is calculated on a diminishing value basis to expense the cost of the assets over their estimated
useful lives and reflects the pattern of consumption of the future economic benefits of these assets and is as
follows:
Leasehold improvements
Plant and equipment
Office furniture and fittings
4 to 13 years
4 to 11 years
2 to 13 years
Depreciation is charged to profit or loss within the Statement of Profit or Loss and Other Comprehensive
Income. The residual value and useful life of property, plant and equipment is reassessed annually.
Repairs and maintenance and gains or losses on sale or disposal of assets are reflected in profit or loss within
Statement of Profit or Loss and Other Comprehensive Income as incurred. Major renewals and betterments
are capitalised.
(e) Foreign Currencies
The functional and presentation currency of the Group is Australian dollars.
Transactions denominated in foreign currencies are converted at the exchange rate current at the transaction
date. Monetary assets and liabilities denominated in foreign currencies at the reporting date are converted at
exchange rates current at reporting date. Foreign exchange gains or losses are included in profit or loss within
the Statement of Profit or Loss and Other Comprehensive Income.
(f) Research and Development
Research expenses include direct and overhead expenses for drug discovery and research, pre-clinical trials
and, more recently, for costs associated with clinical trial activities and drug manufacturing industrialisation.
When a project reaches the stage where it is reasonably certain that future expenditure can be recovered
through the processes or products produced, development expenditure is recognised as a development
asset (other intangible asset).
(g) Share Capital
Ordinary shares are classified as equity. Costs associated with the issue of raising capital are recognised in
shareholders’ equity as a reduction of the share proceeds received. Other expenses such as legal fees are
charged to profit and loss within the Statement of Profit or Loss and Other Comprehensive Income in the
period the expense is incurred.
(h) Earnings Per Share
Basic Earnings Per Share
Basic earnings per share is determined by dividing net profit after income tax attributable to members of
the company, excluding any costs of servicing equity other than ordinary shares, by the weighted average
number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary
shares issued during the year.
Diluted Earnings Per Share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to
take into account the after income tax effect of interest and other financing costs associated with dilutive
potential ordinary shares and the weighted average number of shares assumed to have been issued for no
consideration in relation to dilutive potential ordinary shares.
25
Annual Report 2021
Notes to the Financial Statements
for the year ended 31 March 2021
1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
(i) Goods & Services Tax
The Statement of Profit or Loss and Other Comprehensive Income and Statement of Cash Flows have been
prepared so that all components are presented exclusive of GST. All items in the Statement of Financial
Position are presented net of GST, with the exception of receivables and payables, which include GST
invoiced.
Income Tax
(j)
Income tax expense comprises current and deferred tax. Income tax expense is recognised in profit or loss
within the Statement of Profit or Loss and Other Comprehensive Income except to the extent that it relates to
items recognised directly in Other Comprehensive Income, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or
substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.
Deferred tax is recognised using the balance sheet method, providing for temporary differences between the
carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation
purposes. Deferred tax is not recognised for the following temporary differences: the initial recognition of
goodwill, the initial recognition of assets or liabilities in a transaction that is not a business combination and
that affects neither accounting nor taxable profit, and differences relating to investments in subsidiaries and
jointly controlled entities to the extent that they probably will not reverse in the foreseeable future. Deferred
tax is measured at the tax rates that are expected to be applied to the temporary differences when they
reverse, based on the laws that have been enacted or substantively enacted by the reporting date.
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available
against which deductible temporary differences or unused tax losses can be utilised. Deferred tax assets are
reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related
tax benefit will be realised.
(k) Other Income
Other income is recognised on an accrual basis unless there is significant uncertainty as to the extent and
qualifying criteria for future receipt of such other income. If this condition is not met then other income is
recognised on a cash basis.
(l) Statement of Cash Flows
The Statement of Cash Flows has been prepared using the direct approach. Cash and cash equivalents are
short term, highly liquid investments that are readily convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value.
Investing activities are those activities relating to the acquisition, holding and disposal of property, plant and
equipment, intangible assets and investments.
Financing activities are those that result in changes in the size and composition of the capital structure.
Cash is considered to be cash on hand and current accounts and demand deposits in banks, net of bank
overdrafts.
Operating activities are all transactions and events that are not investing or financing activities.
(m) Share-Based Compensation
The Group operates equity-settled share-based remuneration plans for its employees. None of the Group’s
plans feature any options for a cash settlement.
26
Amplia Therapeutics Limited All goods and services received in exchange for the grant of any share-based payment are measured at
their fair values. Where employees and directors are rewarded using share-based payments, the fair values
of employees’ and directors’ services are determined indirectly by reference to the fair value of the equity
instruments granted. This fair value is appraised at the grant date and excludes the impact of non-market
vesting conditions (for example profitability and sales growth targets and performance conditions).
All share-based remuneration is ultimately recognised as an expense in profit or loss with a corresponding
credit to share option reserve. If vesting periods or other vesting conditions apply, the expense is allocated over
the vesting period, based on the best available estimate of the number of share options expected to vest.
Non-market vesting conditions are included in assumptions about the number of options that are expected
to become exercisable. Estimates are subsequently revised if there is any indication that the number of
share options expected to vest differs from previous estimates. Any cumulative adjustment prior to vesting is
recognised in the current period. No adjustment is made to any expense recognised in prior periods if share
options ultimately exercised are different to that estimated on vesting.
Upon exercise of share options, the proceeds received net of any directly attributable transaction costs are
allocated to share capital.
(n) Finance Income and Expenses
Finance income
Finance income comprises of interest income. Interest income is recognised as it accrues, using the effective
interest method.
Finance expenses
Finance expenses comprised of interest expense on borrowings. All borrowing costs are recognised in profit
and loss of Statement of Profit or Loss and Other Comprehensive Income using the effective interest method.
(o) Operating Expenses
Operating expenses are recognised in profit or loss within the Statement of Profit or Loss and Other
Comprehensive Income upon utilisation of the service or at the date of their origin.
(p) Financial Instruments
Financial assets at amortised cost
Financial 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 flows
the contractual terms of the financial assets give rise to cash flows that are solely payments of principal
and interest on the principal amount outstanding
After 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.
Impairment of Financial assets
AASB 9’s impairment requirements use more forward looking information to recognize expected credit
losses – the ‘expected credit losses (ECL) model’. Instruments within the scope of the new requirements
included loans and other debt-type financial assets measured at amortised cost and FVOCI, trade receivables,
contract assets recognised and measured under AASB 15 and loan commitments and some financial
guarantee contracts (for the issuer) that are not measured at fair value through profit or loss.
27
Annual Report 2021 Notes to the Financial Statements
for the year ended 31 March 2021
1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
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’) and
– financial 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.
Trade and other receivables and contract assets
The Group makes use of a simplified approach in accounting for trade and other receivables as well as
contract assets and records the loss allowance at the amount equal to the expected lifetime credit losses.
In using this practical expedient, the Group uses its historical experience, external indicators and forward-
looking information to calculate the expected credit losses using a provision matrix. The Group assess
impairment of trade receivables on a collective basis as they possess credit risk characteristics based on the
days past due.
Financial liabilities
The Group’s financial liabilities include trade and other payables. All financial liabilities are measured
subsequently at amortised cost using the effective interest method.
Trade and other payables represent liabilities for goods and services provided to the Group prior to the end
of the financial year which are unpaid. The amounts are unsecured and are usually paid within 30 days of
recognition.
All derivative financial instruments that are not designated and effective as hedging instruments are
accounted for at fair value through profit or loss.
Derivative financial instruments
At the reporting date the Group did not undertake any form of hedge accounting.
Determination of fair value and fair value hierarchy
The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments:
Level 1:
Level 2:
Quoted prices in active markets for the same instrument (i.e. without modification or
repackaging);
Quoted prices in active markets for similar assets or liabilities or other valuation techniques for
which all significant inputs are based on observable market data and yield curve information
provided by the Group’s bankers; and
Level 3:
Valuation techniques for which significant inputs are not based on observable market data.
(q) Post Employment Benefits and Short Term Employee Benefits
The Group does not provide any post employment benefits other than superannuation contributions where
required by statutory obligations. Short term employee benefits are included in current liabilities, measured
at the undiscounted amount that the Group expects to pay as a result of the unused entitlement. There are
no long term employee benefits.
28
Amplia Therapeutics Limited (r) Segment Reporting
A segment is a component of the Group entity that earns revenues or incurs expenses whose results are
regularly reviewed by the chief operating decision makers and for which discrete financial information
is prepared. The Group has no operating segments, management review financial information on a
consolidated basis. It has established entities in more than one geographical area, however the activities from
these entities comparative to the Group are considered immaterial for the purposes of segment reporting.
Intangible Assets
(s)
Intangible assets are carried at cost and are amortised over the life of the intangible asset. The licenses
acquired, by the acquisition of Amplia Therapeutics Pty Ltd, were valued at the deemed acquisition value. The
licences are not yet ready for use and hence, no amortisation has been made for the current year.
(t) Going Concern
The financial statements have been prepared on a going concern basis after taking into consideration the net
loss for the year of $2,281,153 and the cash and cash equivalents balance of $1,848,408. The going concern
basis contemplates continuity of normal business activities and realisation of assets and settlement of
liabilities in the ordinary course of business. The going concern of the Group is dependent upon it maintaining
sufficient funds for its operations and commitments. Accordingly, the financial statements do not include
any adjustments relating to the recoverability or classification of recorded asset amounts or classification of
liabilities that might be necessary should the Group not be able to continue as a going concern.
The Company has the exclusive worldwide license to develop and commercialise the drug candidates
AMP945 and AMP886. The exploitation of these licenses will require future funding. The Directors believe that
they will be able to raise sufficient capital to fund the Group’s future operations. The Directors continue to
monitor these ongoing funding requirements and are of the opinion that the financial statements have been
appropriately prepared on a going concern basis.
In March 2020, the World Health Organisation declared the outbreak of a novel coronavirus (COVID-19) as a
pandemic. The Company conducts manufacturing of its drug candidates, which are used for trial purposes,
using overseas suppliers. Continued outbreaks of COVID-19 may cause business disruption to supplies of
product. There is uncertainty around the consequences of such disruptions and as such, the Company is
unable to determine if such disruptions would have a material impact to its operations. However, at this stage
the directors do not believe this will impact the going concern of the Company.
2. CRITICAL ESTIMATES AND JUDGEMENTS
The preparation of financial statements requires management to make judgements, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities,
income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimate is revised and in any future periods affected.
In particular, information about significant areas of estimation uncertainty and critical judgements in
applying accounting policies that have the most significant effect on the amount recognised in the financial
statements are described in the following notes:
–
–
Note 4 – Estimate and receipt of the R&D future tax incentive accrued. This is based on management’s
assessment of the qualifying R&D expenses and the expected recoverability of this government R&D tax
incentive payment.
Note 6 – The Group assesses the impairment of non-financial assets at each reporting date by evaluating
conditions specific to the Group and to the particular asset that may lead to impairment by comparing
the carrying value to the recoverable amount. The recoverable amount of the asset is determined using
a number of key estimates and assumptions including recent clinical trial results, other publicly available
information and the market capitalisation of the company.
29
Annual Report 2021 Notes to the Financial Statements
for the year ended 31 March 2021
3. CASH AND CASH EQUIVALENTS
Cash and cash equivalents consist of the following:
Cash at bank (NZD)
Cash at bank (AUD)
Cash at bank (EUR)
Demand deposits (AUD)
4. OPERATING LOSS
Operating loss from continuing activities is stated after crediting and charging:
Crediting:
Government Covid-19 bonuses
R&D tax incentive received in excess of the amount accrued in the prior year
R&D future tax incentive accrued
Interest received
Foreign exchange gain/
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