ANNUAL
REPORT
2015
2
Contents
From problem to solution: Finding an alternative to antibiotics
Chairman’s Letter to Shareholders
CEO Report
Anatara Key Milestones
Directors’ Report
Auditors’ Independence Declaration
Financial Statements
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 Consolidated Financial Statements
Directors’ Declaration
Independent Audit Report
Corporate Directory
Shareholder Information
4
6
8
10
12
29
30
31
32
33
34
51
52
54
56
ANATARA LIFESCIENCES Annual Report 2015
3
From problem to solution: Finding an alternative to antibiotics
The issue with
antibiotics
Pressure is mounting to stop the
overuse of antibiotics in livestock
An alternative to
antibiotics is needed
Governments are introducing legislation
In 2006 the
European Union
banned the use of
antibiotics for
growth promotion
in animal feed
2006
Asian countries, including
Korea, Japan and Singapore,
have legislated that their meat
must be labelled as
either “antibiotic free”
or “organic”
The World Health Organisation
(WHO) has called for a
worldwide ban
on antibiotics
used for growth
promotion in
livestock
The world needs to produce
50%
more meat by 2030 to meet growing
global demand
As agricultural production
increases, it will be more difficult
to maintain animal health and
protect animal welfare, particularly
without the routine use of
antibiotics
“Superbugs”
or antibiotic resistant bacteria are on
the rise – driven by the overuse of
antibiotics in humans and animals.
Up to
80%
of all antibiotics used are in livestock
production – as growth promotants
or to protect against diseases like
diarrhoea (also known as scour)
2012
In 2012 the US FDA released
guidelines recommending
the removal of growth
promotion label indications
from medically important antibiotics
administered to animals.
Antibiotic resistant bacteria are
directly impacting human health on
a global scale
drug resistant
infections kill at least
700,000
people every year.
2015
In 2015, the White
House released a new
National Action Plan
for Combating
Antibiotic-Resistant
Bacteria and hosted a
Forum of Antibiotic
Stewardship with more
than 150 key
government, business,
and agricultural leaders.
McDonald’s USA commits to only
sourcing chicken raised
without antibiotics
important to human
medicine – a move being
replicated by other major food
retailers as the industry embraces
antimicrobial stewardship in food
animals
With stricter standards
governing the use of antibiotics,
producers are looking for
non-antibiotic alternatives to
protect against disease
It is Anatara’s vision to establish
Detach™ as a safe and effective
alternative that will allow farmers to
maintain current levels of:
animal health
growth
profitability
From problem to solution: Finding an alternative to antibiotics
The issue with
antibiotics
Pressure is mounting to stop the
overuse of antibiotics in livestock
An alternative to
antibiotics is needed
Governments are introducing legislation
In 2006 the
European Union
banned the use of
antibiotics for
growth promotion
in animal feed
2006
Asian countries, including
Korea, Japan and Singapore,
have legislated that their meat
must be labelled as
either “antibiotic free”
or “organic”
In 2012 the US FDA released
guidelines recommending
the removal of growth
promotion label indications
from medically important antibiotics
administered to animals.
2015
In 2015, the White
House released a new
National Action Plan
for Combating
Antibiotic-Resistant
Bacteria and hosted a
Forum of Antibiotic
Stewardship with more
than 150 key
government, business,
and agricultural leaders.
of all antibiotics used are in livestock
production – as growth promotants
or to protect against diseases like
diarrhoea (also known as scour)
2012
“Superbugs”
or antibiotic resistant bacteria are on
the rise – driven by the overuse of
antibiotics in humans and animals.
Up to
80%
Antibiotic resistant bacteria are
directly impacting human health on
a global scale
drug resistant
infections kill at least
700,000
people every year.
The World Health Organisation
(WHO) has called for a
worldwide ban
on antibiotics
used for growth
promotion in
livestock
McDonald’s USA commits to only
sourcing chicken raised
without antibiotics
important to human
medicine – a move being
replicated by other major food
retailers as the industry embraces
antimicrobial stewardship in food
animals
The world needs to produce
50%
more meat by 2030 to meet growing
global demand
As agricultural production
increases, it will be more difficult
to maintain animal health and
protect animal welfare, particularly
without the routine use of
antibiotics
With stricter standards
governing the use of antibiotics,
producers are looking for
non-antibiotic alternatives to
protect against disease
It is Anatara’s vision to establish
Detach™ as a safe and effective
alternative that will allow farmers to
maintain current levels of:
animal health
growth
profitability
6
Chairman’s Letter
Dear Shareholders,
Your company, Anatara has made significant achievements
since listing on the Australian Securities Exchange (ASX:ANR)
in October 2014.
Our lead product DetachTM continues to progress towards
launching on the market; large scale manufacturing is in
place, clinical trials and global partnering discussions have
all commenced, and the company finalised a well-supported
capital raising that puts Anatara in a strong cash position.
Anatara intends to keep our initial focus on the pork industry.
Pork is the most consumed meat around the world and about
1.6 billion piglets are weaned every year. In Europe, the US
and other major pork producing countries, farms are typically
integrated, well run, with sizable operations.
Under the guidance of our Chief Scientific Officer and
Company co-founder, Dr Tracey Mynott, the first field trial
involving nearly 500 piglets was successfully conducted on
an Australian commercial pig farm. DetachTM almost halved
the death rate among young pigs and increased the average
weight of each piglet at weaning. A second field trial has
been completed with successful results and a third is due
to commence shortly. The trial results will be used as part
of a registration submission to the Australian Pesticides
and Veterinary Medicines Agency (APVMA) and we expect
DetachTM to be on the market by the end of 2016.
pharmaceutical manufacturer
Sphere
Sydney-based
Healthcare has been chosen to produce DetachTM. Sphere
has begun producing commercial scale batches of DetachTM,
and stability trials for the APVMA registration package are
underway.
Active partners and participants in the CRC include the largest
Australian pork producers, feed manufacturers, and key
government and farmer industry bodies, including the CSIRO.
Helping to drive the success of Anatara is growing concern
around the world of the use and overuse of antibiotics. World
health authorities are worried that increasing antimicrobial
resistance will reduce the effectiveness of antibiotics and
threaten public health.
Antibiotic resistance results from antibiotic overuse in humans
and animals, with around 80% of all antibiotics used in
production animals. To tackle this, authorities are increasingly
restricting
banning growth promoting antibiotics and
prophylactic antibiotics in animal production. Consumers are
also demanding assurances their meat is safe with specific
focus on “antibiotic free” status. Global food companies such
as McDonald’s are putting plans in place to supply only meat
produced without antibiotics used in humans.
This shift in attitudes has created a vacuum for non-antibiotic
solutions to treat various diseases affecting livestock health
along with the need to maintain optimum animal growth. This
is where Anatara and DetachTM can help.
The Anatara team are moving forward to investigate the
application of our lead product in other livestock species such
as cattle and poultry.
In this changing environment, Anatara has begun engaging
with overseas authorities. We have been fortunate to gain
the services of well-recognised EU and US regulatory experts
with Kevin Woodward joining our team as Regulatory Affairs
Advisor. Kevin will lead our efforts in obtaining approval for
DetachTM in Europe and the US.
We are also excited
to have signed a Commercial
Collaboration Agreement with Australia’s peak pork research
group, the Pork Cooperative Research Centre (Pork CRC).
The CRC will provide Anatara with services to locate key
clinical trial sites and ongoing test sites, assist with the APVMA
approval of DetachTM, and promote the results of these trials.
It should also be noted that Anatara has been granted SME
status in Europe, giving us access to a 90% fee reduction
for companies seeking advice relating to new products. The
fee reduction aims to maximise the chances of successful
product registration. In the US, Anatara has been granted a fee
waiver of US$100,000 per annum so that we can commence
ANATARA LIFESCIENCES Annual Report 2015 7
discussions with the Food and Drug Administration’s Center
for Veterinary Medicine to seek their advice on what they
require for registration.
Global pharmaceutical companies are now concerned about
reducing revenue streams following the move away from
antibiotics. These global giants are logical partners for the
licensing of DetachTM. The appointment of Damian Wilson
as Business Development Manager, with his vast experience
in animal health, has led to meetings and discussions with
most of the top 10 companies in the industry. Anatara also
welcomed Paul Schober as Chief Executive Officer, replacing
Managing Director David Venables, who remains a consultant
for Anatara. Dr Schober’s experience in the global animal
health field and research and development will be invaluable
as the Company grows.
On top of the recruitments to the management team, it should
be noted that the Board has been strengthened. The addition
of Paul Grujic brings a wealth of knowledge and experience
in the Animal Health industry and complements an already
strong Board.
It is a personal pleasure to have joined Anatara as it seeks to
address a global problem with a new and exciting product. I
look forward to sharing our future success with you.
Yours sincerely,
Dr Mel Bridges
Chairman
8
CEO Report
DetachTM
Progress
Significant progress was made during the reporting period as
the first field trial involving nearly 500 piglets was successfully
conducted on an Australian commercial pig farm. Detach™
decreased the death rate among young pigs and increased
the average weight of each piglet at weaning.
A second field trial was begun with successful results reported
after June 30 and a third is due to commence shortly. The trial
results will be used as part of Anatara’s registration submission
to the Australian Pesticides and Veterinary Medicines Agency
(APVMA). The company expects Detach™ to be on the market
by the end of 2016 pending the outcome of the third field trial
and registration process.
Manufacturing
has
secured
Sydney-based
Anatara
pharmaceutical
manufacturer Sphere Healthcare as its producer of Detach™.
Sphere is a large scale manufacturer and fully licensed by
the Therapeutic Goods Administration. The company has
begun producing commercial scale batches of Detach™ with
stability trials for the APVMA registration submission underway.
The Future
Since listing on the ASX in October 2014 the Company
has achieved significant progress in delivering on its key
milestones. The potential of the product pipeline has been
clearly recognised by investors and shareholders, culminating
in Anatara successfully completing two tranches of fund raising
in July this year. The fund raising both by way of a placement
and shareholder Share Purchase Plan was significantly over
subscribed.
With the fund raising process now complete, Anatara is in
a secure position to rapidly roll out Detach™ globally as it
receives regulatory approvals. The funds raised will be used
primarily to carry out parallel registration of Detach™ in
Europe and the United States. Specifically, funds will be used
for:
1. Upscaling of manufacturing in Australia,
2. Safety studies in Australia and overseas,
3. Proof of concept/efficacy trials in piglets in both
Europe and the United States,
4. Registration in Asia (for many Asian countries,
registration in Australia is sufficient to begin sales
there),
5. Efficacy studies of Detach™ in calves,
Product Registration and Global Partnering
6. Efficacy studies of Detach™ in chickens,
Australia
The Company has signed a Commercial Collaboration
Agreement with Pork Cooperative Research Centre (Pork
CRC). The agreement will see the Pork CRC help Anatara
locate key clinical trial sites and ongoing test sites, assist with
the APVMA approval of Detach™, and promote the results of
these trials.
Europe and the United States
The Company has begun engaging with overseas authorities
and will meet with both European Union and US regulators in
October to discuss their requirements for the registration of
Detach™.
With authorities around the world pushing for the reduction
in the use of antibiotics in production animals, there has
been considerable interest in Detach™ by large veterinary
pharmaceutical companies. Anatara is already well advanced
in discussions with several of these firms.
7.
Investigating using Detach™ in a solid form that can
be given to chickens and older pigs.
8. Seek partnerships for the development of Detach™
for humans.
Dr Paul Schober
CEO
ANATARA LIFESCIENCES Annual Report 2015 9
DetachTM Field Trial
233
Piglets treated with Detach
results showed
piglet mortality
47.8%
piglet
weaning
weight
5.7%
10
Anatara Key Milestones
IPO closes oversubscribed
at 7million
First commercial scale
manufacturing run complete
2014
Lists on ASX
European Medicines
Agency (EMA) SME status
granted (90% fee reduction)
First field trial
commences
Positive results from
first field trial reported
US FDA Waiver granted
Second field trial commences
and positive results reported
Successful SPP raises $2m
Third field trial
to commence
Animal Safety Trials
to commence
EU & US registration
trials to commence
Sales expected to
commence in Australia
Board and Executive
team strenghthened
with new appointments
Appointment of International
Regulatory Affairs Advisor
2015
Successful capital
raising $4.4m
Signs agreement
with Pork CRC
Preparation of
dossier for APVMA
2016
Submission of
dossier to APVMA
Approval and
registration by APVMA
ANATARA LIFESCIENCES Annual Report 2015 11
12
Directors’ Report
The Directors present their report, together with the financial statements, on the Company (referred to hereafter as the
‘Company’ or ‘Group’) consisting of Anatara Lifesciences Ltd (referred to hereafter as the ‘company’ or ‘parent entity’) and the
entities it controlled for the year ended 30 June 2015.
Directors
The following persons were Directors of Anatara Lifesciences Ltd during the whole of the financial year and up to the date of
this report, unless otherwise stated:
Dr Mel Bridges
Non-Executive Chairman
Mr Iain Ross
Non-Executive Director
Dr Jay Hetzel
Non-Executive Director (Appointed 4 August 2014)
Dr Tracie Ramsdale
Non-Executive Director (Appointed 4 August 2014)
Mr Paul Grujic
Non-Executive Director (Appointed 24 February 2015)
Dr Paul Schober
Chief Executive Officer (Appointed 2 March 2015)
Dr David Venables
Chief Executive Officer and Executive Director (resigned 24 February 2015)
Dr Tracey Mynott
Chief Scientific Officer and Executive Director (resigned as Executive Director on 4 August 2014)
Principal activities
The Company is an Australian listed entity that focuses on developing oral solutions for gastrointestinal diseases in production
animals and humans and the development and commercialisation of DetachTM, a non-antibiotic therapy that prevents and treats
diarrhoea (also known as scour) in piglets.
ANATARA LIFESCIENCES Annual Report 2015 13
Review of operations
DetachTM
Progress
Significant progress was made during the reporting period as the first field trial involving more than 460 piglets was successfully
conducted on an Australian commercial pig farm with a result of decreased death rate among young piglets and increased the
average weight of each piglet at weaning.
A second field trial was begun and successful results reported after June 30. A third field trial is due to commence shortly. The
trial results will be used as part of a submission to the Australian Pesticides and Veterinary Medicines Agency (APVMA) to register
Detach™ for sale. Stability trials on Detach™ to determine its shelf life are also underway. We expect Detach™ to be on the
market by the end of 2016 pending the outcome of the third trial and the registration submission process.
Manufacturing
Sydney-based pharmaceutical manufacturer Sphere Healthcare has been contracted to produce Detach™ for Anatara. Sphere
has begun producing commercial scale batches of Detach™.
Product Registration and Global Partnering
Australia
Anatara has signed a Commercial Collaboration Agreement with Australia’s leading pork industry research group, the Pork
Cooperative Research Centre (Pork CRC). Under the agreement, Anatara will receive assistance to locate key clinical trial sites
and ongoing test sites, help with the APVMA approval of DetachTM, and promotion of the results of these trials. The Pork
CRC’s partners and participants include Australia’s largest pork producers, feed manufacturers, and key government and farmer
industry bodies, including the CSIRO.
Europe and the United States
The Company has begun engaging with overseas regulatory authorities with the view to obtaining approvals to market DetachTM
in Europe and the US. Anatara has committed to expanding DetachTM’s opportunity overseas with the engagement of senior
regulatory advisors with expertise in European and US regulatory environments.
Financial results and position
The Group reported a loss for the full-year ended 30 June 2015 of $1,795,228 (2014: $862,856). The loss is after fully expensing
all research and development costs.
The Group’s net assets increased by $4.67M (564%) compared with the previous year to $5.48M. As at 30 June 2015, the Group
had cash reserves and financial assets of $5.55M, an increase of $4.5M on the previous financial year end.
14
Information on Directors
The names of Directors in office at any time during or since the end of the year are:
Dr Mel Bridges
Non-Executive Chairman
Experience and
expertise
Dr Bridges has a Bachelor Degree of Science (Chemistry), Honorary Doctorate from Queensland
University of Technology and Fellow of the Australian Institute of Company Directors
Dr Bridges has extensive experience as a CEO/Managing Director and Company Director in healthcare,
agricultural technology, drug development, pathology, diagnostics and medical devices. Related
experience in retail. He has successfully raised in excess of $300 million investment capital in the
healthcare/biotech sector and been directly involved in over $1 billion in M&A and related transactions.
He is the Co-Founder and former Chairman of of PanBio Limited and ImpediMed Limited. He has been
awarded Australian Export Award, Australian Quality Award, Business Bulletin “Business Star of the Year”,
Ernst & Young “Entrepreneur of the Year”, AusBiotech Gold Medal Award and BRW Top 100 Fastest
Growing Companies Award.
Dr Bridges is currently a director of ASX 100 company ALS Ltd, and a director of Tissue Therapies Ltd,
where he is also the chair of the audit & risk committee. Benitec BioPharma Limited (October 2007
to June 2014), ImpediMed Limited (September 1999 to November 2013), Alchemia Limited (October
2003 to July 2013), Genetic Technologies Limited (December 2011 to November 2012), and Leaf Energy
Limited (August 2010 to September 2012)
15 July 2010
Chairman of the Nominations Committee, Member of the Remuneration Committee, Member of the
Audit and Risk Committee
Date of
appointment
Committees
Interest in shares
5,853,230 ordinary shares
Interest in options Nil
Mr Iain Ross
Non-Executive Director
Experience and
expertise
Date of
appointment
Committees
Mr Ross joined the Company as a Director in November 2013. Following a career with multi-national
companies including Sandoz, Fisons plc, Hoffman La Roche and Celltech Group plc for the last 20
years Mr Ross has undertaken a number of company turnarounds and start-ups as a board member on
behalf of private equity groups and banks including Quadrant Healthcare plc, Allergy Therapeutics Ltd,
Eden Biodesign Ltd, Phadia AB, and Silence Therapeutics plc. Currently he is Non-Executive Chairman of
Premier Veterinary Group PLC, which is listed on the Main List of the London Stock Exchange and private
companies Biomer Technology Ltd and Pharminox Ltd.
He is also a Non-Executive Director of Benitec Biopharma Limited, Tissue Therapies Limited, and Director
and Acting Chief Executive of Novogen Limited, each of whose shares are traded on the Australian
Securities Exchange. Novogen is also listed on NASDAQ. He is a Qualified Chartered Director of the UK
Institute of Directors and Vice Chairman of the Council of Royal Holloway, University of London.
17 February 2014
Chair of the Remuneration Committee, Member of the Audit and Risk Management Committee and
Nomination Committee
Interest in shares
1,332,500 ordinary shares
Interest in options Nil
ANATARA LIFESCIENCES Annual Report 2015 15
Dr Jay Hetzel
Non-Executive Director
Experience and
expertise
Dr Hetzel has a background in technology commercialisation, animal genetics R&D and product
development. During a scientific career with CSIRO spanning 20 years, he was an internationally
recognised pioneer in cattle genomics and genetics and played a key role in establishing the foundations
for beef industry applications of DNA technology. In 1998 he co-founded Genetic Solutions Pty Ltd
which commercialised genomics technology in livestock, The company was sold to Pfizer Animal
Health in 2008. Subsequently, he has been involved in the development and commercialisation of a
range of life science technologies.
Dr Hetzel has been a Director of Anatara Lifesciences Ltd since August 2014 and is currently Non-Executive
Chairman of Leaf Resources Ltd. Dr Hetzel is a Fellow of the Australian Academy of Technological
Sciences and Engineering and a Fellow of the Australian Institute of Company Directors. He holds a
Bachelor of Agricultural Science (Hons) from the University of Melbourne and a Ph.D in Animal Genetics
from the University of Sydney.
Date of
appointment
4 August 2014
Committees
Member of the Audit and Risk Management Committee and Remuneration Committee
Interest in shares
444,495 ordinary shares
Interest in options Nil
Dr Tracie
Ramsdale
Experience and
expertise
Non-Executive Director
Dr Ramsdale holds a PhD in Biochemistry from the University of Queensland, a Master of Pharmacy
from the Victorian College of Pharmacy and a Bachelor of Applied Science (Chemistry) from the Royal
Melbourne Institute of Technology.
Following a successful career as a Principal Investigator and Commercial Manager of the Centre for
Drug Design and Development at the University of Queensland, Tracie co-founded Alchemia Limited,
a drug discovery and development company and led the company’s development as its General
Manager and Chief Executive Officer from 1998 to 2007. During this time, she was responsible for
multiple financing transactions including a successful IPO, licensing the company’s technology to major
international pharmaceutical and manufacturing partners and the acquisition of a publicly listed biotech
to strengthen the company’s product pipeline. Tracie continues to serve as a non-executive director of
Alchemia Limited.
Dr Ramsdale has served on a number of industry and government advisory groups including the Australian
Federal Government Advisory Council on Intellectual Property, the Queensland Biotechnology Advisory
Council, and the Industry Research and Development Board’s Biological Committee.
Dr Ramsdale is a Fellow of the Australian Academy of Technological Sciences and Engineering and a
member of the Australian Institute of Company Directors. She currently provides independent consulting
advice to the biotechnology industry, academia and government.
Date of
appointment
4 August 2014
Committees
Chairman of the Audit and Risk Management Committee and Member of Remuneration Committee
Interest in shares
44,000 ordinary shares
Interest in options Nil
16
Mr Paul Grujic
Non-Executive Director
Experience and
expertise
Mr Grujic is a graduate in Applied Biology and in Marketing with more than 30 years’ experience in the
Animal Health industry. His roles have included Sales, Marketing, Business Development and General
Management in the UK, USA and Australia.
He was previously the President of CSL Animal Health with 250 staff and operations in the USA, Australia
and New Zealand. He has also held senior positions with Glaxo, Pitman-Moore, Webster Animal Health,
American Cyanamid and Fort Dodge(Wyeth). In addition he has worked as an advisor to several Animal
Health companies and was a Non-Executive Director of Catapult Genetics, an Executive Director of
Peptech Animal Health and a Director of NOAH the UK Animal Health trade association.
Mr Grujic has wide experience in acquisition, divestment and integration of companies and played a
major role in the sale of CSL Animal Health and Catapult Genetics to Pfizer and Peptech Animal Health
to Virbac, a global Animal Health company.
Date of
appointment
24 February 2015
Committees
Member of Remuneration Committee
Interest in shares
29,605 ordinary shares
Interest in
options
Nil
Dr Paul Schober
Chief Executive Officer
Experience and
expertise
Dr Schober has extensive global experience in the animal health field encompassing R&D, clinical trial
management, regulatory affairs, manufacturing, sales and marketing as well as in ASX investor relations.
In his most recent position, Paul was General Manager of Peptech Animal Health Pty Limited, now
owned by the Australian Division of global animal health company Virbac SA.
Dr Schober’s achievements include approval of the first Australian biotechnology product by the
FDA (Ovuplant in 1998); launch of Ovuplant in the US & the EU; regulatory approval and launch of
animal health product Suprelorin in Australia and the EU and worldwide distribution agreements with
leading animal health companies including Dechra, Fort Dodge Animal Health and Virbac. He was also
instrumental in the successful positioning and trade sale of an animal health company.
Dr Schober has a BSc (Hons), PhD and MBA from the University of Sydney
Date of
appointment
2 March 2015
Committees
Nil
Interest in shares
188,810 ordinary shares
Interest in
options
Dr David
Venables
Date of
resignation
Nil
Non-Executive Director
24 February 2015
Dr Tracey Mynott
Executive Director
Date of
resignation
4 August 2014
ANATARA LIFESCIENCES Annual Report 2015 17
Company Secretaries
Mr Stephen
Denaro
Experience and
expertise
Company Secretary
Stephen has extensive experience in mergers and acquisitions, business valuations, accountancy
services, and income tax compliance gained from positions as Company Secretary and Chief Financial
Officer of various public companies and with major chartered accountancy firms in Australia and the
United Kingdom. He provides company secretarial services for a number of start-up technology and ASX
listed and unlisted public companies.
Stephen has a Bachelor of Business in accountancy, Graduate Diploma in Applied Corporate Governance
and is a member of the institute of Chartered Accountants in Australia and the Australian Institute of
Company Directors.
Date of
appointment
24 February 2014
Meetings of Directors
The number of meetings of the company’s Board of Directors (‘the Board’) and of each board committee held during the year
ended 30 June 2015, and the number of meetings attended by each director were:
Board Meetings
Committee Meetings
Audit and Risk
Management
Remuneration
Nominations
No.
eligible to
attend
No.
attended
No.
eligible to
attend
No.
attended
No.
eligible
to attend
No.
attended
No.
eligible to
attend
No.
attended
14
14
14
14
5
9
14
11
14
14
4
8
21
2
2
2
11
11
2
2
2
2
1
1
2
2
2
21
2
-
2
2
2
2
2
-
1
1
-
-
-
-
1
1
-
-
-
-
Directors
Dr Mel Bridges
Mr Iain Ross
Dr Jay Hetzel
Dr Tracie Ramsdale
Mr Paul Grujic
Dr David Venables
1By invitation
18
Remuneration Report (audited)
The Remuneration Report, which has been audited, outlines the key management personnel remuneration arrangements for
the Group, in accordance with the requirements of the Corporations Act 2001 and its Regulations.
The Remuneration Report is set out under the following main headings:
A. Principles used to determine the nature and amount of remuneration
B. Details of remuneration
C. Service agreements
D. Share-based compensation
E. Relationship between the remuneration policy and Group performance
F. Key management personnel disclosures
A. Principles used to determine the nature and amount of remuneration
Remuneration governance
The objective of the remuneration committee is to ensure that pay and rewards are competitive and appropriate for the
results delivered. The remuneration committee charter adopted by the Board aims to align rewards with achievement of
strategic objectives and the creation of value for shareholders. The remuneration framework applied provides a mix of
fixed and variable pay and a blend of short and long-term incentives as appropriate. Issues of remuneration are considered
annually or otherwise as required.
Non-executive Directors
Fees and payments to non-executive Directors reflect the demands which are made on, and the responsibilities of, the
Directors. The Company’s policy is to remunerate non-executive Directors at market rates (for comparable companies)
for time commitment and responsibilities. Fees for non-executive Directors are not linked to the performance of the
Company, however to align Directors’ interests with shareholders’ interests, Directors are encouraged to hold shares in
the Company.
Non-executive Directors’ fees and payments are reviewed annually by the Board of Directors. The Board of Directors
considers advice from external sources as well as the fees paid to non-executive Directors of comparable companies
when undertaking the annual review process. Each director receives a fee for being a director of the company.
The Chairman’s fees are determined independently to the fees of other non-executive Directors based on comparative
roles in the external market. The chairman is not present at any discussions relating to determination of his own
remuneration.
Retirement benefits and allowances
No retirement benefits are payable other than statutory superannuation, if applicable to the Directors of the Company.
ANATARA LIFESCIENCES Annual Report 2015 19
Other benefits
No motor vehicle, health insurance or other similar allowances are made available to Directors (other than through salary-
sacrifice arrangements).
Executive pay
Executive pay and reward consists of base pay, short-term performance incentives, long-term performance incentives
and other remuneration such as superannuation. Superannuation contributions are paid into the executive’s nominated
superannuation fund.
Base pay
Executives are offered a competitive level of base pay which comprises the fixed (unrisked) component of their pay and
rewards. Base pay for senior executives is reviewed annually to ensure market competitiveness. There are no guaranteed
base pay increases included in any senior executives’ contracts. Base pay was increased during the year.
Short-term and long-term incentives
Contractual agreements with key management personnel provide for the provision of incentive arrangements should
these be introduced by the Company. There are currently no short-term or long-term incentive (STI & LTI) schemes in
place within the Company. The board have, in the 2015-16 financial year, put in place a STI and LTI scheme. The STI
component is performance based for Dr Schober and Dr Mynott and represents 20% of their respective base salaries,
and is awarded on the basis of performance to a set of board approved Key Performance Indicators (KPI’s). Executive
KPI’s are based on the APVMA approval process; manufacturing; EU and USA regulatory pathway; partnering and financial
performance. The CSO has KPI’s around clinical trials in addition. The board has agreed an option pool to be granted in
the 2015-16 financial year. The options will have a three year exercise period lapsing in up to five years and will be priced
at a 45% premium to the five day VWAP at date of granting.
Securities Trading Policy
The trading of Company’s securities by employees and Directors is subject to, and conditional upon, the Policy for
Trading in Company Securities which is available on the Company’s website (www.Anatara Lifesciences.com).
Voting and comments made at the Company’s 2014 Annual General Meeting
The Company did not vote on its remuneration report for the 2014 financial year. The Company did not receive any
specific feedback at the AGM or throughout the year on its remuneration policies.
Use of remuneration consultants
If remuneration consultants are to be engaged to provide remuneration recommendations as defined under section
9B of the Corporations Act 2001, then they are engaged by, and report directly to, the remuneration committee. No
remuneration consultants were engaged to provide remuneration services during the financial year.
20
B. Details of remuneration
Amounts of remuneration
Key Management Personnel (KMP) of the Company are defined as those persons having authority and responsibility
for planning, directing and controlling the major activities of the Company, directly or indirectly, including any director
(whether executive or otherwise) of the Company receiving the highest remuneration. Details of the remuneration of the
KMP of the Company are set out in the following tables.
The key management personnel of the Company consisted of the following Directors of Anatara Lifesciences Ltd:
Dr Mel Bridges
Non-Executive Chairman
Mr Iain Ross Non-Executive Director
Dr Jay Hetzel Non-Executive Director (Appointed 4 August 2014)
Dr Tracie Ramsdale
Non-Executive Director (Appointed 4 August 2014)
Mr Paul Grujic
Non-Executive Director (Appointed 24 February 2015)
Dr David Venables
Chief Executive Officer and Executive Director (resigned 24 February 2015)
And the following persons:
Dr Tracey Mynott
Chief Scientific Officer and Executive Director (resigned as Executive Director on 4 August 2014)
Dr Paul Schober
Chief Executive Officer (Appointed 2 March 2015)
Short-term benefits
Post-employment
Long-
term
Share-
based
30 June
2015
Cash
salary
and fees
benefits
benefits payments
Annual
Leave
Non-
monetary
Superannuation
Long
service
leave
Equity-
settled
Total
% of
remuneration
not related to
performance
$ AUD
$ AUD
$ AUD
$ AUD
$ AUD
$ AUD
$ AUD
Non-Executive Directors:
294,172
Executive Directors:
Dr David
Venables
117,000
117,000
-
-
-
Other Key Management Personnel:
Dr Paul
Schober
Dr Tracey
Mynott
Grand
Total
64,086
5,393
214,905
22,316
278,991
27,709
690,163
27,709
-
-
-
-
-
-
-
22,147
-
-
14,425
20,416
34,841
56,988
-
-
-
-
-
-
-
- 316,319
-
-
-
-
117,000
100.00%
117,000
83,904
100.00%
257,637
100.00%
- 341,541
- 774,860
ANATARA LIFESCIENCES Annual Report 2015
21
Short-term benefits
Post-employment
Long-
term
Share-
based
30 June
2014
Cash
salary
and
fees
benefits
benefits payments
Annual
Leave
Non-
monetary
Superannuation
Long
service
leave
Equity-
settled
Total
% of
remuneration
not related to
performance
$ AUD
$ AUD
$ AUD
$ AUD
$ AUD
$ AUD
$ AUD
Non-Executive Directors:
Dr Mel
Bridges
Mr Iain
Ross
36,000
24,000
60,000
Executive Directors:
Dr David
Venables
72,873
72,873
-
-
-
-
-
Other Key Management Personnel:
Dr Tracey
Mynott
108,941
Grand
Total
241,814
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4,959
4,959
-
-
-
-
-
-
-
-
-
-
-
-
-
-
36,000
100.00%
24,000
100.00%
60,000
72,873
100.00%
72,873
113,900
100.00%
246,773
C. Service agreements
Executives
The employment conditions of the Chief Executive Officer and Director, Dr Paul Schober is formalised in a contract
of employment which commenced on the 2 March 2015. This contract stipulates a salary of $220,000 pa, inclusive of
superannuation and any salary sacrifice items. The base salary may increase up to a maximum of 10% based on agreed
key performance indicators (KPI) in the first year of employment. Up to 30% of the salary is to be paid for each financial
year subsequent to the completion of the first year of employment upon meeting KPI’s at the Board’s discretion. This
component will be reviewed annually by the Board. The Executive will be permitted to participate in the Company’s Share
and Option Plan. The contract is term is continuing, termination benefits are as prescribed by statutory entitlements.
Similarly, the employment conditions of the Chief Scientific Officer, Dr Tracey Mynott, is formalised in a contract of
employment which commenced on the 1 August 2014. The agreement stipulates that at the absolute discretion of the
Board, upon meeting key performance indicators set in accordance with this Agreement, and subject to tax as required
by law, the Executive may be paid an additional gross amount up to 30% of the Salary, to a maximum of$54,000, for
each financial year of this Agreement, commencing from the financial year 2014 - 2015. The Executive will be permitted
to participate in the Company’s Share and Option Plan. The contract term is continuing, termination benefit are as
prescribed by statutory entitlements and an additional six months.
Key management personnel are entitled to receive on termination of employment their statutory entitlements of accrued
annual and long service leave, together with any superannuation benefits.
22
Non-Executive Directors
In accordance with best practice corporate governance, the structure of non-executive Directors and executive
remunerations is separate and distinct. Directors’ fees cover all main board activities and committee memberships.
The current base fees, plus superannuation and GST (as applicable), for each non-executive Director is $50,000 per
annum (plus a further $5,000 per annum for acting as chair of a Board committee). The Chairman’s fee is $80,000 per
annum. The maximum amount of fees that can be paid to non-executive Directors is subject to approval by shareholders
at a General Meeting and is currently at a maximum aggregate of $500,000 per annum.
Director agreements are continuing. Key management personnel have no entitlement to termination payments in the
event of removal for misconduct.
D. Share-based compensation
Issue of shares or options
There were no shares or options issued to Directors and other key management personnel as part of compensation
during the year ended 30 June 2015. (2014 $nil).
E. Relationship between the remuneration policy and group
performance
As detailed under headings A & B, remuneration of executives consists of an unrisked element (base pay) and cash
bonuses based on performance in relation to key strategic, non-financial measures linked to drivers of performance in
future reporting periods. As such, remuneration is not linked to the financial performance of the Company in the current
or previous reporting periods.
F. Key management personnel disclosures
Shareholding
The number of shares in the parent entity held during the financial year by each director and other members of key
management personnel of the Company, including their personally related parties, is set out below:
ANATARA LIFESCIENCES Annual Report 2015
23
Balance at
the start of
the year
Balance at
date of
appointment
Received
as part of
remuneration
Additions
Disposals/
other
Balance at
date of
resignation
Balance at
the end of
the year
30 June
2015
Ordinary
Shares
Non-
Executive
Directors
Dr Mel
Bridges
Dr Jay Hetzel
Dr Tracie
Ramsdale
Mr Paul
Grujic
Executive
Directors
Dr David
Venables
Other Key
Management
Personnel
Dr Paul
Schober
Dr Tracey
Mynott
1,139,346
Mr Iain Ross
245,000
-
-
80,899
-
-
-
-
-
1,384,346
80,899
225,000
225,000
-
1,000,527
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4,713,884
1,087,500
363,596
44,000
29,605
6,238,585
930,000
930,000
188,810
4,002,108
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5,853,230
1,332,500
444,495
44,000
29,605
7,703,830
1,155,000
1,155,000
-
-
-
-
188,810
5,002,635
1,155,000
12,895,275
Grand Total
2,609,873
80,889
-
11,359,503
Option holding
There were no options over ordinary shares in the parent entity held during the current or previous financial year by any
director or other members of key management personnel.
Related party transactions
The Group’s related parties include its key management/shareholders as described below. Unless otherwise stated, none
of the transactions incorporate special terms and conditions and no guarantees were given or received. Outstanding
balances are usually settled in cash.
There are no related party transactions during the year ended 30 June 2015.
END OF REMUNERATION REPORT
24
Corporate Governance Statement
Events occurring after reporting
date
On 7 July 2015, the Company issued a placement of 8,204,903 fully paid ordinary shares at 0.78 cents per share. The funds
raised will provided working capital to:
• Fund foreign registration trials in the US and Europe;
• Fund proof of concept trials of DetachTM on calves and poultry;
• Advance the pre-clinical program, and prepare a dossier in readiness for partnering;
• Advance safety studies; and
• General working capital including in feed formulation and manufacturing costs.
On 11 August 2015, the Company announced that it has signed a Commercial Collaboration Agreement with the Pork
Cooperative Research Centre (Pork CRC). The CRC will provide Anatara with services to locate key clinical trial sites and
ongoing test sites, assist with the APVMA approval of its lead therapy, DetachTM, and promote the results of these trials.
Apart from the above, no other matter or circumstance has arisen since 30 June 2015 that has significantly affected, or may
significantly affect the Company’s operations, the results of those operations, or the Company’s state of affairs in future
financial years.
Significant changes in the state of
affairs
There were no other significant changes in the state of affairs of the Company during the financial year.
ANATARA LIFESCIENCES Annual Report 2015 25
Likely developments, business
strategies and prospects
With the successful fund raising complete, Anatara is in a secure position to rapidly roll out Detach™ globally as it receives
regulatory approvals. The funds raised will be used to conduct parallel registration trials of DetachTM for pigs in Europe and the
United States and will also be used to ramp up manufacturing, safety studies, and registration in Asia. Anatara will also conduct
trials of DetachTM in calves and poultry, and seek development partners for its use in humans.
First and foremost we remain committed to completing the necessary work to submit a registration application for the approval
to market DetachTM in Australia by the end of 2016. To this end we have engaged a team of regulatory experts who will assist us
with preparing the registration dossier and submission to the APVMA. As noted previously, our clinical trials are well underway
and we expect to begin a safety study in the coming months. To aid our expanded clinical trial program overseas and in other
species, we are actively seeking an animal clinical trial expert to join the team.
Once DetachTM is approved in Australia, we will also be able to begin sales in several Asian countries under what is known as
a “Certificate of Free Sale” available to those products which have Australian approval. We will also be investigating the best
potential methods of distribution for those countries.
We also expect to shortly have meetings with the European and USA regulatory authorities to discuss our registration plans in
both these territories. By applying to the US and EU authorities concurrently we are aiming to reduce the number of trials usually
required in both jurisdictions (three in each) to save both time and cost. The advances in mutual recognition between the US
and the EU lead us to believe that this may be possible.
The recent funding will allow us to pursue the above activities without being forced into a partnership deal to complete the work.
Whilst it is definitely our intention to find a global partner for all potential uses of DetachTM in all jurisdictions, we can continue
to add value to Anatara whilst evaluating all possible partners and offers to ensure we get the best possible arrangement for the
company.
The potential for DetachTM in other species could provide a significant uplift in the company’s value. Anatara has previously
conducted preliminary studies in calves where diarrhoea is also a big problem. These early proof of concept trials showed that
the product can be effective and we will be looking for partners to help begin trials in this area.
Anatara has also begun investigating the possibility of turning the DetachTM liquid dose (effectively a drench) into a solid
formulation. DetachTM has been sent to a local solid feed manufacturer and the resultant solid feed will be tested to ensure that
the active ingredient survives the formulating process. If this proves to be successful, we will immediately initiate an efficacy
trial in “grower” pigs, ie. those post weaning. It is noteworthy that the APVMA has recently announced improved changes to the
approval of animal feed (eg. swine, cattle and poultry) leading to a faster route to market for Anatara.
Finally the Company will also focus on seeking commercial partners and sources of non-dilutive funding in the human health
arena. The problem of diarrhoea for children in third world countries is a significant issue and Anatara believe that its product
could well be one part of the answer in saving many lives. It is important to note that that piglets is the model used to study
gastrointestinal treatments in humans, so the company receives double the benefit for all its pig trials.
26
Environmental legislation
The Company’s operations are not subject to any particular or significant environmental regulation under a law of the
Commonwealth or of a State or Territory in Australia.
Indemnity and insurance of
officers
The Company has indemnified the Directors and executives of the Company for costs incurred, in their capacity as a director or
executive, for which they may be held personally liable, except where there is a lack of good faith.
During the financial year, the Company paid a premium in respect of a contract to insure the Directors and executives of the
company against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure
of the nature of liability and the amount of the premium.
Indemnity and insurance of
auditor
The Company has not, during or since the financial year, indemnified or agreed to indemnify the auditor of the company or any
related entity against a liability incurred by the auditor.
During the financial year, the Company has not paid a premium in respect of a contract to insure the auditor of the company
or any related entity.
Proceedings on behalf of the
company
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf
of the Company, or to intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on
behalf of the Company for all or part of those proceedings.
ANATARA LIFESCIENCES Annual Report 2015 27
Non-audit services
The following non-audit services were provided by the entity’s auditor, Grant Thornton. The Directors are satisfied that
the provision of non-audit services is compatible with the general standard of independence for auditors imposed by the
Corporations Act 2001. The nature and scope of each type of non-audit service provided means that auditor independence was
not compromised.
Grant Thornton received or is due to receive the following amounts for the provision of non-audit services:
Consolidation Entity
Taxation
Total
30-Jun-15
30-Jun-14
$
$
51,335
51,335
19,500
19,500
There are no officers of the Company who are former audit partners of Grant Thornton Audit Pty Ltd.
Auditor’s independence declaration
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out on
the following page.
Auditor
Grant Thornton Audit Pty Ltd, appointed 20 November 2014, continue in office in accordance with section 327 of the
Corporations Act 2001.
This report is made in accordance with a resolution of Directors, pursuant to section 298(2)(a) of the Corporations Act 2001.
28
Corporate Governance Statement
In accordance with ASX Listing Rule 4.10.3, the Company’s 2015 Corporate Governance Statement can be found on its website
at http://anataralifesciences.com/investors/corporate-governance.
On behalf of the Directors
Dr Mel Bridges
Chairman
Date: This Day 27th of August 2015
Melbourne
ANATARA LIFESCIENCES Annual Report 2015 29
The Rialto, Level 30
525 Collins St
Melbourne Victoria 3000
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 Anatara Lifesciences Ltd
In accordance with the requirements of section 307C of the Corporations Act 2001, as lead
auditor for the audit of Anatara Lifesciences Ltd for the year ended 30 June 2015, 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
M.A. Cunningham
Partner - Audit & Assurance
Melbourne, 27 August 2015
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
‘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. Liability is limited in those States where a current
scheme applies.
30
Consolidated Statement of Profit
or Loss and Other Comprehensive
Income
For the year ended 30 June 2015
Consolidated Entity
Revenue
Research Grant
Interest Received
Other income – R&D tax incentive
Expenses from Operating Activities
Research and Development Expenses
Patent Expense
Consultancy Expenses
Staff Expenses
Travel and Accommodation
ASX and Share Registry Fees
Other Expenses
Note
30-Jun-15
30-Jun-14
$
$
-
90,000
140,904
12,439
61,383
-
(128,672)
(177,439)
(84,893)
(78,678)
(496,699)
(180,614)
(774,860)
(246,773)
(257,605)
(201,461)
(139,227)
-
(115,559)
(80,329)
Loss from Operating Activities, before income tax
(1,795,228)
(862,856)
Income Tax Expense
Loss for the Period
Other Comprehensive Income for the year
Total Comprehensive Loss for the Period
Losses per share:
Basic losses per share ($ per share)
Diluted losses per share ($ per share)
3
-
-
(1,795,228)
(862,856)
-
-
(1,795,228)
(862,856)
5
5
(0.05)
(0.05)
(0.06)
(0.06)
This statement should be read in conjunction with the notes to the financial statements
ANATARA LIFESCIENCES Annual Report 2015
31
Consolidated Statement of
Financial Position
For the year ended 30 June 2015
Consolidated Entity
ASSETS
Current Assets
Cash and Cash Equivalents
Trade and Other Receivables
Financial Assets – Term Deposits
Prepayments
Total Current Assets
Non-Current Assets
Equipment
Total Non-Current Assets
TOTAL ASSETS
LIABILITIES
Current Liabilities
Trade and other payables
Employee entitlements
Total Current Liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Accumulated Losses
TOTAL EQUITY
Note
30-Jun-15
30-Jun-14
$
$
7
1,497,539
1,051,082
52,060
4,053,419
456
-
-
2,860
5,603,018
1,054,398
24,776
24,776
-
-
5,627,794
1,054,398
119,268
27,710
146,978
146,978
227,617
-
227,617
227,617
5,480,816
826,781
8
8,420,555
1,971,292
(2,939,739)
(1,144,511)
5,480,816
826,781
This statement should be read in conjunction with the notes to the financial statements.
32
Consolidated Statement of Changes
in Equity
For the year ended 30 June 2015
Consolidated Entity
Share capital
Note
$
Retained
Earnings
$
Total
$
Balance as at 1 July 2013
1,000
(281,655)
(280,655)
Total comprehensive income/(loss) for the year
-
(862,856)
(862,856)
Transactions with owners in their capacity as owners:
Shares issued net of costs
Capital Raising Cost
Debt to equity conversion
Balance at 30 June 2014
1,750,000
(142,934)
363,226
-
-
-
1,750,000
(142,934)
363,226
1,971,292
(1,144,511)
826,781
Total comprehensive income/(loss) for the year
-
(1,795,228)
(1,795,228)
Transactions with owners in their capacity as owners:
Shares Issued
Capital Raising Cost
Balance at 30 June 2015
8
8
7,000,000
(550,737)
-
-
7,000,000
(550,737)
8,420,555
(2,939,739)
5,480,816
This statement should be read in conjunction with the notes to the financial statements.
ANATARA LIFESCIENCES Annual Report 2015 33
Consolidated Statement of Cash
Flows
For the year ended 30 June 2015
Consolidated Entity
Cash Flow Related to Operating Activities
Payments to suppliers and employees
Interest received
Research and development concessions grant
Note
30-Jun-15
30-Jun-14
$
$
(2,073,898)
(651,704)
87,904
12,438
61,383
-
Net Cash Flows from Operating Activities
12
(1,924,611)
(639,266)
Cash Flows Related to Investing Activities
Payment for purchases of plant and equipment
Investments in term deposits
Net Cash Flows used in Investing Activities
Cash Flow Related to Financing Activities
Proceeds from issues of securities
Capital raising costs
Proceeds from related party borrowings
Net Cash Flows used in Financing Activities
Net Increase/(Decrease) in Cash and Cash Equivalents
Cash and cash equivalents at the beginning of the year
(24,776)
(4,053,419)
(4,078,195)
-
-
-
7,000,000
1,750,000
(550,737)
(142,934)
-
17,267
6,449,263
1,624,333
446,457
985,067
1,051,082
66,015
Cash and Cash Equivalents at the End of the Year
7
1,497,539
1,051,082
This statement should be read in conjunction with the notes to the financial statements.
34
Notes to the Consolidated Financial
Statements
For the year ended 30 June 2015
1. Significant accounting policies
Corporate Information
The financial report of Anatara Lifesciences Ltd (the “Company”) and its subsidiaries (together the “Group”) for the year
ended 30 June 2015 was authorised for issue in accordance with a resolution of the Directors on the 27th day of August
2015. The financial report is for the Group consisting of Anatara Lifesciences Ltd and its subsidiaries.
Anatara Lifesciences Ltd is a listed public company limited by shares incorporated and domiciled in Australia whose
shares are publicly traded on the Australian Securities Exchange. The principal activities of the Group are to develop oral
solutions for gastro-intestinal diseases in animals and in humans.
Basis of Preparation
The financial report is a general-purpose financial report, which has been prepared in accordance with the requirements
of the Corporations Act 2001 and Australian Accounting Standards, required for a for-profit entity.
The financial report has been prepared on an accruals basis and is based on historical costs. The financial report is
presented in Australian dollars, which is the Group’s functional and presentation currency. All values are rounded to the
nearest dollar unless otherwise stated.
Management is required to make judgements, estimates and assumptions about carrying values of assets and liabilities
that are not readily apparent from other sources. The estimates and associated assumptions are based on historical
experience and various other factors that are believed to be reasonable under the circumstance, the results of which
form the basis of making the judgements. Actual results may differ from these estimates. The 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 if the revision affects only that period, or in the period of the revision and future periods if the
revision affects both current and future periods.
Judgements made by management in the application of Australian Accounting Standards that have significant effects on
the financial statements and estimates with a significant risk of material adjustments in the next year are disclosed, where
applicable, in the relevant notes to the financial statements.
Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies
the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other
events is reported.
Statement of Compliance
The financial report complies with Australian Accounting Standards as issued by the Australian Accounting Standards
Board and International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board.
ANATARA LIFESCIENCES Annual Report 2015 35
New, revised or amending Accounting Standards and Interpretations adopted
The Group has adopted all of the new, revised or amending Accounting Standards and Interpretations issued by the
Australian Accounting Standards Board (‘AASB’) that are mandatory for the current reporting period.
Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been early
adopted.
Other than the amended accounting standards listed above, all other accounting standards adopted by the Group are
consistent with the most recent Annual Report for the year ended 30 June 2014.
The following Australian Accounting Standards and Interpretations have recently been issued or amended but are not yet
effective and therefore have not been adopted by the Group for the annual reporting period ended 30 June 2015:
Application
date of
standard
Impact on
financial
report
Application
date
1 January
2018
minimal
1 July 2018
1 January
2018
minimal
1 July 2018
Reference
Title
Summary
AASB 9
Financial
Instruments
(2014)
AASB 15
Revenue from
Contracts with
Customers
AASB 9 addresses the classification,
measurement and derecognition of
financial assets and financial liabilities
and introduces new rules for hedge
accounting. In December 2014, the
AASB made further changes to the
classification and measurement rules
and also introduced a new impairment
model. These latest amendments now
complete the new financial instruments
standard.
The AASB has issued a new standard
for the recognition of revenue. This
will replace AASB 118 which covers
contracts for goods and services and
AASB 111 which covers construction
contracts. The new standard is based
on the principle that revenue is
recognised when control of a good
or service transfers to a customer –
so the notion of control replaces the
existing notion of risks and rewards.
The standard permits a modified
retrospective approach for the
adoption. Under this approach entities
will recognise transitional adjustments
in retained earnings on the date of initial
application (eg 1 July 2018), ie without
restating the comparative period. They
will only need to apply the new rules to
contracts that are not completed as of
the date of initial application
36
AASB
2015-2
Amendments
to Australian
Accounting
Standards –
Disclosure
Initiative:
Amendments
to AASB 101
1 January
2016
minimal
1 July 2016
The Standard makes amendments to
AASB 101 Presentation of Financial
Statements arising from the IASB’s
Disclosure Initiative project. The
amendments are designed to further
encourage companies to apply
professional judgment in determining
what information to disclose in the
financial statements. For example, the
amendments make clear that materiality
applies to the whole of financial
statements and that the inclusion of
immaterial information can inhibit the
usefulness of financial disclosures.
The amendments also clarify that
companies should use professional
judgment in determining where and in
what order information is presented in
the financial disclosures.
Accounting Policies
The following is a summary of the material accounting policies adopted by the Group in the preparation of the financial
report. The accounting policies have been consistently applied, unless otherwise stated.
Principles of Consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Anatara Lifesciences Ltd
as at 30 June 2015 and the results of all subsidiaries for the year ended.
Subsidiaries are all those entities over which the Group has control. The Group controls an entity when they are exposed
to, or have rights to, variable returns from its involvement with the entity and has the ability to affect those returns
through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control
is transferred to the Group. They are de-consolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between entities in the Group are eliminated.
Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted
by the Group.
Segment reporting
Identification and measurement of segments – The Group uses the “management approach” to the identification,
measurement and disclosure of operating segments. The “management approach” requires that operating segments
be identified on the basis of internal reports that are regularly reviewed by the entity’s chief operating decision maker
(comprising the Board of Directors), for the purpose of allocating resources and assessing performance.
Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue
can be reliably measured. The following specific recognition criteria must also be met before revenue is recognised.
Interest revenue is recognised as interest accrues using the effective interest method.
ANATARA LIFESCIENCES Annual Report 2015 37
Research and Development Tax Incentive – is recognised when it has been established that the conditions of the tax
incentive have been met and that the expected amount of tax incentive can be reliably measured.
Grant income is recognised when the Group determines that it will comply with the conditions attached to the grant and
that the grant will be received. The funding is recognised on a systematic basis over periods in which the entity recognises
as expenses the costs related to the grant.
Research and Development Costs
Research costs are expensed as incurred.
An intangible asset arising from development expenditure on an internal project is recognised only when the Group
can demonstrate the technical feasibility of completing the intangible asset so that it will be available for use or sale, its
intention to complete and its ability to use or sell the asset, how the asset will generate future economic benefits, the
availability of resources to complete the development and the ability to measure reliably the expenditure attributable to
the intangible asset during its development.
Income tax
Deferred income tax is provided on all temporary differences at the reporting date between the tax bases of assets and
liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax liabilities are recognised for all taxable temporary differences except where the deferred income tax
liability arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at
the time of the transaction, affects neither the accounting loss nor taxable profit or loss.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets
and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible
temporary differences, and the carry-forward of unused tax assets and unused tax losses can be utilised except where the
deferred income tax asset relating to the deductible temporary differences arises from the initial recognition of an asset or
liability in a transaction that is not a business combination and, at the time of transaction, affects neither the accounting
loss nor taxable profit or loss.
The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that it
is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to
be utilised.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the
asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted
at reporting date.
Income taxes relating to items recognised directly in equity are recognised in equity and not in profit or loss.
The Company and its wholly-owned Australian resident entities are members of a tax consolidated group
under Australian taxation law. The Company is the head entity in the tax consolidated group. Entities
within the tax consolidated group have entered into a tax funding agreement and a tax-sharing agreement
with the head entity. Under the terms of the tax funding arrangement, the Company and each of the
entities in the tax consolidated group have agreed to pay a tax equivalent payment to or from the head
entity, based on the current tax liability or current tax asset of the head entity.
Earnings per share
Basic earnings per share is calculated as net loss attributable to members, adjusted to exclude costs of servicing equity
(other than dividends), divided by the weighted average number of ordinary shares, adjusted for any bonus element.
Diluted earnings per share is calculated as net loss attributable to members, adjusted for:
38
• costs of servicing equity (other than dividends);
•
the after tax effect of dividends and interest associated with dilutive potential ordinary shares that have been
recognised as expenses;
• other non-discretionary changes in revenues or expenses during the period that would result from the dilution
of potential ordinary shares; divided by the weighted average number of ordinary shares and dilutive potential
ordinary shares, adjusted for any bonus element.
Cash and cash equivalents
Cash and short-term deposits in the Statement of Financial Position comprise cash at bank and in hand and short-term
deposits with an original maturity of three months or less.
For the purposes of the Statement of Cash Flow, cash and cash equivalents consist of cash and cash equivalents as
defined above.
Trade and other receivables
Trade and other receivables are recognised initially at fair value and subsequently measured at amortised cost using
the effective interest method, less an allowance for impairment, once they become over due by more than 60 days. A
separate account records the impairment.
An allowance for a doubtful debt is made when there is objective evidence that the Group will not be able to collect the
debts. The criteria used to determine that there is objective evidence that an impairment loss has occurred include whether
the financial asset is past due and whether there is any other information regarding increased credit risk associated with
the financial asset. Bad debts which are known to be uncollectible are written off when identified.
Goods and services tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except:
• where the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in
which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as
applicable; and
•
receivables and payables are stated with the amount of GST included.
Cash flows arising from operating activities are included in the Statement of Cash Flows on a gross basis (i.e. including
GST) and the GST component of cash flows arising from investing and financing activities, which is recoverable from, or
payable to, the taxation authority are classified as operating cash flows. Commitments and contingencies are disclosed
net of the amount of GST recoverable from, or payable to, the taxation authority. The net amount of GST recoverable
from or payable to, the taxation authority is included as part of the receivables or payables in the Statement of Financial
Position.
Financial Instruments
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of
the financial instrument, and are measured initially at fair value adjusted by transactions costs, except for those carried at
fair value through profit or loss, which are measured initially at fair value. Subsequent measurement of financial assets and
financial liabilities are described below.
Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when
the financial asset and all substantial risks and rewards are transferred. A financial liability is derecognised when it is
extinguished, discharged, cancelled or expires.
Held to maturity investments
Held to maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturities
ANATARA LIFESCIENCES Annual Report 2015 39
that the Group’s management has the positive intention and ability to hold to maturity. If the consolidated entity were
to sell other than an insignificant amount of held to maturity financial assets, the whole category would be tainted and
reclassified as available-for-sale. Held to maturity financial assets are included in non-current assets, except for those
maturities less than 12 months from the end of the year, which are classified as current assets.
Plant and Equipment
Plant and equipment are measured at cost or fair value less any accumulated depreciation and any impairment losses.
Such assets are depreciated over their useful economic lives as follows:
Plant and equipment
Intangible assets
Life
3-5years
Method
Straight line
Internally generated intangible assets, excluding capitalised development costs, are not capitalised and expenditure is
charged against profits in the year in which the expenditure is incurred.
Intellectual property costs
Amounts incurred for rights to or for acquisition of intellectual property are expensed in the year in which they are
incurred to the extent that such intellectual property is used for research and development activities.
Impairment of non-financial assets
The carrying values of non-financial assets are tested for impairment whenever events or changes in circumstances
indicate that the carrying amount may not be recoverable.
An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount.
Recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing
impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows that are largely
independent of the cash inflows from other assets or groups of assets (cash-generating units). Non-financial assets
that suffer impairment are tested for possible reversal of the impairment whenever events or changes in circumstances
indicate that the impairment may have reversed.
Impairment exists when the carrying value of an asset exceeds its estimated recoverable amount. The asset is then
written down to its recoverable amount.
Trade and other payables
Trade and other payables are carried at amortised cost and represent liabilities for goods and services provided to the
Group prior to the end of the financial year that are unpaid and arise when the Group becomes obliged to make future
payments in respect of the purchase of these goods and services. Licensing fees are recognised as an expense when it
is confirmed that they are payable by the Group.
Employee benefits
Short Term Employee Benefits
Provision is made for the Group’s obligation for short-term employee benefits. Short-term employee benefits are benefits
(other than termination benefits) that are expected to be settled wholly before 12 months after the end of the annual
reporting period in which the employees render the related service, including wages, salaries and sick leave. Short-term
employee benefits are measured at the (undiscounted) amounts expected to be paid when the obligation is settled.
The Group’s obligations for short-term employee benefits such as wages, salaries and sick leave are recognised as a part
of current trade and other payables in the statement of financial position. The Group’s obligations for employees’ annual
leave entitlements are recognised as provisions in the Consolidated Statement of Financial Position.
40
Long Service Leave
The liability for long service leave is recognised for employee benefits and measured as the present value of expected
future payments to be made in respect of services provided by employees up to the reporting date. Consideration is given
to expected future wage and salary levels, experience of employee departures, and periods of service. Expected future
payments are discounted using market yields at the reporting date on high quality corporate bonds with terms to maturity
and currencies that match, as closely as possible, to the estimated future cash outflows.
Contributed equity
Ordinary shares are classified as equity. Any transaction costs arising on the issue of ordinary shares are recognised
directly in equity as a reduction (net of tax) of the share proceeds received.
Foreign currency translation
The functional currency of the Group is based on the primary economic environment in which the Group operates. The
functional currency of the Group is Australian dollars.
Transactions in foreign currencies are converted to local currency at the rate of exchange at the date of the transaction.
Amounts payable to and by the Group outstanding at reporting date and denominated in foreign currencies have been
converted to local currency using rates prevailing at the end of the financial year.
All exchange differences are taken to profit or loss.
Leases
The minimum lease payments of operating leases, where the lessor effectively retains substantially all of the risks and
benefits of ownership of the leased item, are recognised as an expense on a straight-line basis.
Parent Information
The financial information for the parent entity, Anatara Lifesciences Ltd, disclosed in note 13 has been prepared on the
same basis as the consolidated statement.
Significant Accounting Estimates and Assumptions
The carrying amounts of certain assets and liabilities are often determined based on estimates and assumptions of future
events. The key estimates and assumptions that have a significant risk of causing a material adjustment to the carrying
amounts of certain assets and liabilities within the next annual reporting period are:
Recognition of deferred tax assets
The extent to which deferred tax assets can be recognised is based on an assessment of the probability of the Group’s
future taxable income against which the deferred tax assets can be utilised.
Capitalised development costs
Development costs are only capitalised by the Group when it can be demonstrated that the technical feasibility of
completing the intangible asset is valid so that the asset will be available for use or sale.
No development costs were capitalised during the current year.
ANATARA LIFESCIENCES Annual Report 2015 41
2. Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the Board of Directors
(Chief Operating Decision Makers), which make strategic decisions for the Group.
The Chief Operating Decision Maker evaluates the results on a Group wide basis and as such does not have specific
operating segments.
3. Income Tax Benefits
Reconciliation of income tax expense to prima facie tax expense:
The prima facie tax on profit/(loss) from ordinary activities before tax at 30%
(2014: 30%) is:
Under/over provision of tax from prior year
Benefit of tax (benefit)/losses not brought to account
Actual tax expenses (income)
Tax losses and temporary differences:
30-Jun-15
30-Jun-14
$
$
(538,568)
(258,857)
(166,449)
-
705,017
258,857
-
-
30-Jun-15
30-Jun-14
$
$
Unused tax losses and temporary differences for which no deferred tax asset
has been recognised (not tax effected)
3,478,821
1,128,760
Deferred income tax benefit:
Deferred tax assets arising from tax losses are, to the extent noted above, not recognised at reporting date as realisation
of the benefit is not regarded as probable. This deferred income tax benefit will only be obtained if:
a. future assessable income is derived of a nature and of an amount sufficient to enable the benefit to be realised;
b. the conditions for deductibility imposed by tax legislation is complied with, including Continuity of Ownership
and/or Same Business Tests; and
c. no changes in tax legislation adversely affect the Group in realising the benefit.
42
4. Auditor’s Remuneration
During the financial year the following fees were paid or payable for services provided by Grant Thornton Audit Pty Ltd,
the auditor of the Group, its network firms and unrelated firms:
Audit or review of the financial statement
Other services
Total auditor’s remuneration
Taxation
Total remuneration paid to Grant Thornton
5. Loss per Share
Consolidation Entity
30-Jun-15
30-Jun-14
$
50,000
2,950
52,950
51,335
104,285
$
20,000
8,000
28,000
19,500
47,500
Both the basic and diluted earnings per share have been calculated using the profit attributable to shareholders of Anatara
Lifesciences Ltd as the numerator, i.e. no adjustments to profits were necessary during the year ended 30 June 2015 and
2014.
The weighted average number of shares for the purposes of the calculation of diluted earnings per share can be reconciled
to the weighted average number of ordinary shares used in the calculation of basic earnings per share as follows:
Basic loss per share
Diluted loss per share
Consolidation Entity
30-Jun-15
30-Jun-14
$
$
($0.05)
($0.05)
($0.06)
($0.06)
a)
b)
c)
Net loss used in the calculation of basic and diluted loss per share
(1,795,228)
(862,856)
Weighted average number of ordinary shares outstanding during the period
used in the calculation of basic and diluted loss per share
33,722,603
14,523,183*
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. All the options on issue do not have the
effect of diluting the loss per share therefore, they have been excluded from
the calculation of diluted loss per share.
-
-
There have been no other conversions to, call of, or subscriptions for ordinary shares, or issues of potential
ordinary shares since the reporting date and before the completion of this financial report.
* Capital was subdivided on a 1:1500 basis on 8 May 2014 and on a 1:5 basis on 11 September 2014, comparative results
for Earnings per Share have been restated to reflect this share split.
ANATARA LIFESCIENCES Annual Report 2015
43
6. Dividends
No dividends were paid and no dividends are expected to be paid during the year period ended in 30 June 2015 (2014: Nil).
7. Cash and Cash Equivalents
Summary of cash held:
Cash at bank
Term Deposits
8. Contributed Equity
Consolidation Entity
30-Jun-15
30-Jun-14
$
$
497,539
1,051,082
1,000,000
-
1,497,539
1,051,082
Consolidation Entity
30-Jun-15
30-Jun-14
$
$
Ordinary fully paid shares
8(a)
8,420,555
1,971,292
8,420,555
1,971,292
8(a) Ordinary Shares
Note
Year to 30 June 2015
Year to 30 June 2014
No.
$
No.
$
Balance at the beginning of the period
4,750,000
1,971,292
1,785
1,000
Debt to equity conversion
9
Subdivision of shares, 1,500 shares for every 1
share
-
-
Subdivision of shares, 5 shares for every 1 share
19,000,000
-
-
-
215
363,226
2,998,000
-
-
-
Shares issued during the period
14,000,000
7,000,000
1,750,000
1,750,000
Transaction costs relating to share issues
-
(550,737)
-
(142,934)
Balance at the end of the period
37,750,000
8,420,555 4,750,000
1,971,292
Ordinary shares participate in dividends and the proceeds on winding up the Company in proportion to the number of
shares held. At shareholder meetings each ordinary share is entitled to one vote when a poll is called, otherwise each
shareholder has one vote on a show of hands. The ordinary shares have no par value.
44
9. Share based payments and related party transactions
30 June 2015
There are no share based payments or related party transactions for the year ended 30 June 2015.
30 June 2014
On 14 April 2014 the outstanding non-interest bearing loan amounts owing to entities related to a current and previous
directors respectively were converted into equity as follows:
Details are as follows
Date of issue:
Number of shares issued:
Issue price:
Total value of shares issued:
Determination of fair value:
4 April 2014
215 fully paid ordinary shares
Nil
$363,226
fair value of the loan amount converted at the date of issue
10. Key management personnel compensation
The aggregated compensation made on Directors and other members of key management personnel of the Group is
set out below:
Short-term employee benefits
Post-employment benefits
Consolidated Entity
30-Jun-15
30-Jun-14
$
$
717,872
56,988
774,860
241,814
4,959
246,773
Further disclosures regarding key management personnel compensation are contained within the remuneration report.
ANATARA LIFESCIENCES Annual Report 2015
11. Commitments and Contingencies
a. Commitments
Lease expenditure commitments:
- not later than 12 months
45
Consolidation Entity
30-Jun-15
30-Jun-14
$
$
20,176
20,176
23,000
23,000
The lease expenditure commitments relate to the leasing of office premises. The lease is for a term of one year,
expiring April 2016.
a. Contingent asset and liabilities
The Group does not consider it has contingent assets or liabilities outstanding as at 30 June 2015.
12. Reconciliation of net loss after income tax to net cash
from operating activities
Net Loss for the period
Movements in working capital:
(Increases)/Decreases in Accounts Receivable
(Increases)/Decreases in Other Current Assets
Increases/(Decreases) in Accounts Payable
Increases/(Decreases) in Employee Entitlements
Net cash flows used in operating activities
Consolidated Entity
30-Jun-15
30-Jun-14
$
$
(1,795,228)
(862,856)
(51,604)
2,860
-
2,970
(108,348)
220,620
27,710
-
(1,924,610)
(639,266)
46
13. Parent Entity Information
Set out below is the supplementary information about the parent entity.
Statement of Financial Position
ASSETS
Total Current Assets
Total Non-Current Assets
TOTAL ASSETS
LIABILITIES
Total Current Liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Accumulated Losses
TOTAL EQUITY
Parent
30-Jun-15
30-Jun-14
$
$
5,581,020
1,075,867
24,776
-
5,605,796
1,075,867
102,978
102,978
227,617
227,617
5,502,818
848,250
8,420,555
1,971,292
(2,917,737)
(1,123,042)
5,502,818
848,250
Statement of profit or loss and other comprehensive income
Parent
Loss for the year
other comprehensive income
Total comprehensive income
30-Jun-15
30-Jun-14
$
$
(1,794,695)
(862,856)
-
-
(1,794,695)
(862,856)
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
The parent entity has not entered into any guarantees in the current or prior financial year in relation to debts of its
subsidiaries.
Significant accounting policies
The accounting policies of the parent entity are consistent with those of the Group as disclosed in note 1.
ANATARA LIFESCIENCES Annual Report 2015
47
14. Subsidiaries
Country of incorporation
Name of entity
Sarantis Pty Limited
Equity holding
2014
%
100
2014
%
100
Australia
15. Events after the reporting period
On 7 July 2015, the Company issued a placement of 8,204,903 fully paid ordinary shares at 0.78 cents per share. The
funds raised will provided working capital to:
• Fund foreign registration trials in the US and Europe;
• Fund proof of concept trials of DetachTM on calves and poultry;
• Advance the pre-clinical program, and prepare a dossier in readiness for partnering;
• Advance safety studies; and
• General working capital including in feed formulation and manufacturing costs.
On 11 August 2015, the Company announced that it has signed a Commercial Collaboration Agreement with the Pork
Cooperative Research Centre (Pork CRC). The CRC will provide Anatara with services to locate key clinical trial sites and
ongoing test sites, assist with the APVMA approval of its lead therapy, DetachTM, and promote the results of these trials.
Apart from the above, no other matter or circumstance has arisen since 30 June 2015 that has significantly affected, or
may significantly affect the Group’s operations, the results of those operations, or the Group’s state of affairs in future
financial years.
16. Financial Instruments, Risk Management Objectives
and Policies
The Group’s principal financial instrument is cash and cash equivalents and financial assets – term deposits.
The main purpose of these financial instruments is to finance the Group’s operations. The Group has various other
financial assets and liabilities such as receivables and trade payables, which arise directly from its operations. It is, and
has been throughout the entire period, the Group’s policy that no trading in financial instruments shall be undertaken.
The main risk arising from the Group’s financial instruments is liquidity risk. Other minor risks are summarised below. The
Board reviews and agrees policies for managing each of these risks.
48
Liquidity risk analysis
Liquidity risk is the risk that the Group might be unable to meet its obligations. The Group manages its liquidity needs by
monitoring forecast cash inflows and outflows due in day-to-day business. The data used for analysing these cash flows is
consistent with that used in the contractual maturity analysis below. Liquidity needs are monitored in various time bands.
Long-term liquidity needs for a 180-day and a 360-day lookout period are identified monthly. Net cash requirements are
compared to available funding in order to determine headroom or any shortfalls.
The Group’s non-derivative financial liabilities have contractual maturities as summarised below:
30 June 2015
30 June 2014
Current
Current
Within 6
months
6 to 12
months
Within 6
months
6 to 12
months
$
$
$
$
119,268
119,268
-
-
227,617
227,617
-
-
Trade and other payables
Total
Interest rate risk
The Group’s exposure to the risk of changes in market interest rates relates primarily to the Group’s cash deposits with
floating interest rates which expose the Group to interest rate risk. All other financial assets and liabilities in the form of
receivables and payables are non-interest bearing. The Group does not engage in any hedging or derivative transactions
to manage interest rate risk.
In regard to its interest rate risk, the Group continuously analyses its exposure. Within this analysis consideration is given
to potential renewals of existing positions, alternative investments and the mix of fixed and variable interest rates.
The following tables set out the Group’s financial instruments and its exposure to the type of interest rate risk and the
effective weighted average interest rate for each class of these financial instruments. Also included is the effect on profit
and equity after tax if interest rates at that date had been 10% higher or lower with all other variables held constant as a
sensitivity analysis.
Non-
interest
bearing
Floating
interest
rates
Fixed
interest
rates
Effect on profit
10% of
current rate
-10% of
current rate
$
$
$
$
$
As at 30 June 2015
Financial assets
Loans and receivables
- Trade and other receivables
52,062
-
-
-
-
- Cash and cash equivalents
- Other financial assets
Financial liabilities, amortised cost
-
-
-
Trade and other payables
(119,268)
497,539
1,000,000
1,244
(1,244)
-
-
-
4,053,419
-
-
-
-
-
-
-
-
Total
(67,206)
497,539
5,053,419
1,244
(1,244)
ANATARA LIFESCIENCES Annual Report 2015
49
Non-
interest
bearing
Floating
interest
rates
Fixed
interest
rates
Effect on profit
10% of
current rate
-10% of
current rate
$
$
$
$
$
As at 30 June 2014
Financial assets
Loans and receivables
- Trade and other receivables
456
-
- Cash and cash equivalents
-
1,051,082
Financial liabilities, amortised cost
Trade and other payables
Total
(227,617)
-
(227,161)
1,051,082
-
-
-
-
-
-
2,628
(2,628)
-
-
2,628
(2,628)
A sensitivity of 10% of current prevailing interest rates has been selected as this is considered conservative and reasonable
given the current level of both short term and long term Australian interest rates. A 10% sensitivity would move short
term rates from 2.50% to approximately 2.75% representing a 25 basis points shift. This would represent an interest rate
increase, which are reasonably possible in the current environment.
Based on the sensitivity analysis only interest revenue from variable rate deposits and cash balances is impacted resulting
in a decrease or increase in overall income.
Foreign Exchange Risk
Foreign exchange risk arises when future commercial transactions and recognised assets and liabilities are denominated
in a currency that is not the Group’s functional currency. The Group’s foreign transactions are immaterial during the year
and it is not exposed to foreign currency risk.
Credit Risk
Credit risk arises from cash and cash equivalents and outstanding trade and other receivables. The cash balances are held
in financial institutions with high ratings. The Group has assessed that there is minimal risk that the cash and trade and
other receivables balances are impaired.
50
17. Capital management policies and procedures
The Group’s objectives when managing capital are to ensure that the Group has sufficient funds to be a going concern.
This is achieved by ensuring that the Board is focussed on cash flow management through periodic Board reporting. The
Board reviews financial accounts on a monthly basis and reviews actual expenditure against budget on a monthly basis.
The Group could also raise additional capital if necessary by issuing new shares so as to fund the development of its key
products. The total capital is shown as the equity in the Statement of Financial Position. There is expected to be no debt
in the next 12 months and there are no external restrictive agreements on the Group for the use of its capital.
Management also maintains a capital structure that ensures the lowest cost of capital available to the entity.
The Group does not have a defined share buy-back plan.
No dividends were paid in 2015 and no dividends are expected to be paid in 2016.
There is no current intention to incur debt funding on behalf of the Group as on-going development expenditure is
expected to be funded via equity or partnerships with other companies. The Group is not subject to any externally
imposed capital requirements.
ANATARA LIFESCIENCES Annual Report 2015 51
Directors’ Declaration
The Directors’ of the Company declare that;
•
•
•
•
the attached financial statements and notes thereto comply with the Corporations Act 2001, the Australian Accounting
Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements;
the attached financial statements and notes thereto comply with International Financial Reporting Standards as issued
by the International Accounting Standards Board as described in note 1 to the financial statements;
the attached financial statements and notes thereto give a true and fair view of the Group’s financial position as at 30
June 2015 and of its performance for the financial year ended on that date; and
there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due
and payable.
The Directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of Directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
On behalf of the Directors
Dr Mel Bridges
Chairman
Date: This Day 27th of August 2015
Melbourne
The Rialto, Level 30
525 Collins St
Melbourne Victoria 3000
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
Independent Auditor’s Report
To the Members of Anatara Lifesciences Ltd
Report on the financial report
We have audited the accompanying financial report of Anatara Lifesciences Ltd (the
“Company”), which comprises the consolidated statement of financial position as at
30 June 2015, the consolidated statement of profit or loss and other comprehensive income,
consolidated statement of changes in equity and consolidated statement of cash flows for
the year then ended, notes comprising a summary of significant accounting policies and
other explanatory information and the directors’ declaration of the consolidated entity
comprising the Company and the entities it controlled at the year’s end or from time to time
during the financial year.
Directors’ responsibility for the financial report
The Directors of the Company are responsible for the preparation of the financial report
that gives a true and fair view in accordance with Australian Accounting Standards and the
Corporations Act 2001. The Directors’ responsibility also includes such internal control as
the Directors determine is necessary to enable the preparation of the financial report that
gives a true and fair view and is free from material misstatement, whether due to fraud or
error. The Directors also state, in the notes to the financial report, in accordance with
Accounting Standard AASB 101 Presentation of Financial Statements, the financial
statements comply with International Financial Reporting Standards.
Auditor’s responsibility
Our responsibility is to express an opinion on the financial report based on our audit. We
conducted our audit in accordance with Australian Auditing Standards. Those standards
require us to comply with relevant ethical requirements relating to audit engagements and
plan and perform the audit to obtain reasonable assurance whether the financial report is
free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial report. The procedures selected depend on the auditor’s
judgement, including the assessment of the risks of material misstatement of the financial
report, whether due to fraud or error.
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
‘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. Liability is limited in those States where a current
scheme applies.
2
In making those risk assessments, the auditor considers internal control relevant to the
Company’s preparation of the financial report that gives a true and fair view in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the Company’s internal control. An audit
also includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by the Directors, as well as evaluating the
overall presentation of the financial report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our audit opinion.
Independence
In conducting our audit, we have complied with the independence requirements of the
Corporations Act 2001.
Auditor’s opinion
In our opinion:
a
b
the financial report of Anatara Lifesciences Ltd is in accordance with the
Corporations Act 2001, including:
i
ii
giving a true and fair view of the consolidated entity’s financial position as at
30 June 2015 and of its performance for the year ended on that date; and
complying with Australian Accounting Standards and the Corporations
Regulations 2001; and
the financial report also complies with International Financial Reporting Standards as
disclosed in the notes to the financial statements.
Report on the remuneration report
We have audited the remuneration report included in pages x to y of the directors’ report
for the year ended 30 June 2015. The Directors of the Company are responsible for the
preparation and presentation of the remuneration report in accordance with section 300A of
the Corporations Act 2001. Our responsibility is to express an opinion on the remuneration
report, based on our audit conducted in accordance with Australian Auditing Standards.
Auditor’s opinion on the remuneration report
In our opinion, the remuneration report of Anatara Lifesciences Ltd for the year ended
30 June 2015, complies with section 300A of the Corporations Act 2001.
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
M.A. Cunningham
Partner - Audit & Assurance
Melbourne, 27 August 2015
54
Corporate Directory
DIRECTORS
Dr Mel Bridges
Non-Executive Chairman
Mr Iain Ross
Non-Executive Director
Dr Jay Hetzel
Non-Executive Director (Appointed 4 August 2014)
Dr Tracie Ramsdale
Non-Executive Director (Appointed 4 August 2014)
Mr Paul Grujic
Dr Paul Schober
Dr David Venables
Dr Tracey Mynott
Non-Executive Director (Appointed 24 February 2015)
Chief Executive Officer (Appointed 2 March 2015)
Chief Executive Officer and Executive Director (resigned 24 February 2015)
Chief Scientific Officer and Executive Director (resigned as Executive Director on 4 August 2014)
COMPANY SECRETARY
Mr Stephen Denaro
COMPANY
Anatara Lifesciences Ltd
ABN 41 145 239 872
PRINCIPAL PLACE OF BUSINESS
433 Logan Road, Stones Corner,
Brisbane, Queensland, Australia, 4120
Telephone:
+ 61 (0)7 3394 8202
SHARE REGISTRY
Computershare Investor Services Pty Ltd
117 Victoria Street, West End,
Queensland, Australia, 4101
Telephone:
1300 787 272 (local)
+61 (0)3 9415 4000 (international)
Facsimile:
+61 (0)3 9473 2500 (local and international)
ANATARA LIFESCIENCES Annual Report 2015
55
AUDITORS
Grant Thornton Audit Pty Ltd
The Rialto, Level 30, 525 Collins Street,
Melbourne, Vic, 3000 Australia
Telephone
+61 (0)3 8320 2222
Facsimile:
+61 (0)3 8320 2200
WEBSITE
www.anataralifesciences.com
REGISTERED OFFICE
433 Logan Road, Stones Corner,
Brisbane, Queensland, Australia, 4120
Telephone:
+ 61 (0)7 3394 8202
SOLICITORS
McCullough Robertson
Level 11, Central Plaze Two,
66 Eagle Street, Brisbane,
Queensland, 4000, Australia
BANKERS
ANZ
Melbourne, Victoria
SECURITIES QUOTED
Australian Securities Exchange
- Ordinary Fully Paid Shares (Code: ANR)
56
Shareholder Information
Below is the current shareholder information at 25 September 2015 based on available information:
Top 20 Security Holders - Ordinary Shares
No of Shares
% Issued Capital
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
MYENG PTY LTD
PARMA CORPORATION PTY LTD
UBS NOMINEES PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
IAIN ROSS
DAVID CHARLES VENABLES
AZALEA FAMILY HOLDINGS PTY LTD
PARMA CORPORATION PTY LTD
BEEBEE HOLDINGS PTY LTD
JAMES PETER KALOKERINOS + MARY-ANNE KALOKERINOS
CS FOURTH NOMINEES PTY LTD
BUNGEELTAP PTY LTD
13. HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 3
14. MATTHEW TURNER
15.
16.
17.
JACOBY MANAGEMENT SERVICES PTY LIMITED
JACOBY MANAGEMENT SERVICES PTY LIMITED
JONTRA HOLDINGS PTY LTD
18. CITICORP NOMINEES PTY LIMITED
19.
BUDUVA PTY LTD
20.
PICTON COVE PTY LTD
5,002,635
4,947,825
2,229,562
1,577,131
1,282,500
1,125,000
818,000
799,019
690,614
591,219
572,239
494,288
490,217
464,102
455,000
428,114
405,614
388,400
368,234
352,713
Totals: Top 20 holders of FULLY PAID ORDINARY SHARES (TOTAL)
Total Remaining Holders Balance
23,482,426
25,805,810
Total
49,288,236
10.15
10.04
4.52
3.20
2.60
2.28
1.66
1.62
1.40
1.20
1.16
1.00
0.99
0.94
0.92
0.87
0.82
0.79
0.75
0.72
47.63
52.37
100.00
ANATARA LIFESCIENCES Annual Report 2015 57
Distribution of Security Holders
No of Securities Held
No of Investors
No of Securities
1 to 1000
1001 to 5000
5001 to 10,000
10,001 to 100,000
100,001 to (max)
Total
33
161
104
374
88
760
26,476
500,655
821,957
12,945,296
34,993,852
49,288,236
58
ANATARA LIFESCIENCES Annual Report 2015 59
ANNUAL REPORT 2015
Anatara Lifesciences Ltd
ABN 41 145 239 872
433 Logan Road, Stones Corner,
Brisbane, Queensland, Australia, 4120
Telephone:
+ 61 (0)7 3394 8202