A N A T A R A L I F E S C I E N C E S LT D
Annual Report 2023
A B N 4 1 1 4 5 2 3 9 8 7 2
Our vision
TO PROVIDE EVIDENCE-BASED S OLUTION S FO R G ASTROI NTESTI NAL
TRACT HEALTH ISSUES TO ADD R ESS A SIG N I FI CANT U N MET C LI NI CAL NE E D
Anatara Lifesciences (ASX: ANR) specialises in creating evidence-based, innovative products to
address unmet needs in gastrointestinal health for both humans and animals. Our focus is on
building a pipeline of gastrointestinal health products through in-house development and part-
nerships for licensing. Our core commitment is to deliver tangible benefits to patients and create
significant value for our shareholders.
Annual Report 2023 Anatara Lifesciences Ltd
ANATARA LIFES CIENCES LTD
Appendix 4E
Anatara Lifesciences Ltd
Appendix 4E
Year ended 30 June 2023
Results for announcement to the market.
Revenue from ordinary activities
Loss from ordinary activities after tax
attributable to members*
Net loss for the period attributable to
members*
*reduction in loss
-
Down
-%
20%
Down
20%
To
To
To
-
2,023,188
2,023,188
Distributions
No dividends have been paid or declared by the company for the current financial year. No dividends were paid for
the previous financial year.
Explanation of results
Please refer to the review of operations and activities for explanation of the results
Additional information supporting the Appendix 4E disclosure requirements can be found in the directors' report
and the financial statements for the year ended 30 June 2023.
Net tangible assets per security
Net tangible asset backing (per security)
2023 Cents
0.77
2022 Cents
1.83
Changes in controlled entities
There have been no changes in controlled entities during the year ended 30 June 2023.
Other information required by Listing Rule 4.3A
a. Details of any individual and total dividends or distributions and dividend or distribution payments:
b. Details of any dividend or distribution reinvestment plans:
c. Details of associates and joint venture entities:
d. Other information:
N/A
N/A
N/A
N/A
Audit
The financial statements have been audited by the group's independent auditor and an unqualified audit
opinion inclusive of an emphasis of matter regarding going concern has been issued.
Anatara Lifesciences Ltd
ABN: 41 145 239 872
Contents
For the Year Ended 30 June 2023
Consolidated Financial Statements
Corporate Directory
Directors' Report
Corporate Governance Statement
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Financial Statements
Directors' Declaration
Independent Audit Report
Auditor's Independence Declaration under Section 307C of the Corporations Act 2001
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Page
1
2
21
22
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24
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27
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54
Annual Report 2023 Anatara Lifesciences Ltd
ANATARA L IF ES C IEN CES LTD
ABN 41 1 45 239 872
Contents
FOR THE YEAR E NDE D 30 JUNE 202 3
Consolidated Financial Statements
Corporate Directory
Chair’s Letter
Review of Operations
Directors’ Report
Corporate Governance Statement
Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Financial Statements
Director’s Declaration
Independent Audit Report
Shareholder Information
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02
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08
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Page 1
Anatara Lifesciences Ltd
ABN: 41 145 239 872
Corporate Directory
30 June 2023
Directors
Dr David Brookes
Mr David Brookes
Executive Chair
Dr Jane Ryan
Non-Executive Director
Mr Nicholas Haslam
Non-Executive Director
Secretary
Mr Stephen Denaro
Registered office and principal place of business
c/- Perks, Level 8, 81 Flinders Street, Adelaide SA 5000
Telephone: +61 (0)4 3802 7172
Share Register
Computershare Investor Services Pty Ltd
Level 1, 200 Mary Street, Brisbane QLD 4000
Telephone: +61 (0)7 3237 2100
Auditor
Grant Thorton Audit Pty Ltd
Level 3, 170 Frome Street, Adelaide SA 5000
Telephone: +61 (0)8 8372 6666
Solicitors
Thomson Geer
Level 16, Waterfront Place, 1 Eagle Street, Brisbane QLD 4000
Telephone: +61 (0)8 8236 1300
Bankers
Commonwealth Bank of Australia
Melbourne VIC 3000
Telephone: +61 (0)2 9378 2000
Stock exchange listings
Anatara Lifesciences Ltd shares are listed on the Australian Securities Exchange (ASX code: ANR)
Website
www.anataralifesciences.com
Annual Report 2023 Anatara Lifesciences Ltd Page 2
Executive Chair’s Letter to Shareholders
Thank you for your continued support and investment in Anatara Lifesciences. On behalf of the Board of Directors, I
am pleased to present Anatara’s 2023 Annual Report which is dominated by the progress of the GaRP-IBS trial and
the subsequent encouraging Interim Analysis result that was announced on the 28th of September 2023.
As stated at this time last year, a critical assessment of the Company’s activities and assets took place. This resulted
in the decision to continue the GaRP-IBS trial with changes to the management and contracted arrangements and
was supported by a Rights Issue and placement to sophisticated investors in October 2022, with shortfall finalised
early in 2023. Other arrangements and activities were changed or finalised as documented in our ASX releases. The
focus on assessing other opportunities and assets to broaden Anatara’s human health portfolio was also heightened.
Subsequent to the end of the financial year, the GaRP-IBS trial had a positive interim analysis of Stage 1 with the
objectives of confirming safety and establishing a dose regime with an efficacy signal for Stage 2 being achieved.
The details of the trial results and design are contained within the Review of Operations. This followed a confidential
preliminary analysis, from the Data Safety Monitoring Board, in June 2022 to ensure that decisions to continue
supporting the GaRP-IBS trial were not already futile.
Anatara’s small team are very dedicated to rebuilding the Company’s projects and shareholder value. Once again it
has not been an easy period with limited resources and the typical road bumps of a clinical trial journey. The Board
thanks COO Mr. John Michailidis and CDO Mr. Simon Erskine for their dedication and assistance. A Board transition
process began with Ms. Sue MacLeman retiring in November 2022 and has continued with Dr Jane Ryan recently
choosing not to seek a further term and retiring after the successful interim analysis of the GaRP-IBS trial. Mr Nick
Haslam joined the Board as Chair of Audit and Risk in November 2022 and I thank all directors for their contributions.
On behalf of the Anatara Board and management team, our sincere thanks to our loyal and those more recent
shareholders. The GaRP product with broad health indications has confirmed promise and we remain inspired to
commercialise evidence-based solutions for gastrointestinal health and look forward to updating you on our progress.
Yours sincerely,
Dr. David Brookes
Executive Chair
Annual Report 2023 Anatara Lifesciences Ltd Page 3
Review of Operations
GaRP – Irritable Bowel Syndrome (IBS) Phase I/II trial
Anatara’s GaRP (Gastrointestinal ReProgramming) product is a multi-component, coated complementary medicine
designed to address underlying factors associated with chronic gastrointestinal conditions such as IBS and IBD.
The product consists of GRAS (Generally Regarded As Safe) components and is designed to assist restoration and
maintenance of the gastrointestinal tract (GIT) lining and the homeostasis of the microbiome.
The interim futility statistical analysis of Stage 1 of the GaRP-IBS trial was reviewed by the DSMB (Data Safety
Monitoring Board) on 27 September 2023 and concluded that Stage 1 has successfully met the study objectives
of confirming safety and the optimum dose for the single dose expanded Stage 2 of the trial, with a preliminary
indication of meaningful efficacy. The data from 61 participants over 3 arms (placebo, low and high dose) strongly
supported continuing the trial using the Low Dose. There were no concerning safety signals and the DSMB were
satisfied that the continuation of the current trial protocol was supported. The DSMB have suggested considering
variations to the randomisation in Stage 2 to aid recruitment by considering reduction of the placebo rate, e.g.
increasing the randomisation ratio to 2:1 optimum dose vs placebo, as opposed to the currently proposed 1:1
(optimum dose vs placebo) randomisation.
In the ASX release on the 28 September Anatara’s Executive Chair, Dr David Brookes commented that “This is a very
pleasing and not unexpected outcome from the Stage 1 interim analysis given the trial design. To confirm safety and
the optimum dose with a meaningful indication of efficacy was the intention of Stage 1 of the trial. The Company is
buoyed by this milestone and looks forward to advancing the GaRP project. Encouragingly the reduction in symptoms
using the IBS-SSS suggests a meaningful adjunctive treatment for those patients meeting the criteria for moderate
IBS.”
Dr Brookes added;
“More broadly our expectation is that this complementary medicine’s rejuvenating gastrointestinal tract (GIT)
effects will provide relief for sufferers of non-specific GIT symptoms and be an adjunctive therapy in other medical
indications, such as IBD (Inflammatory Bowel Disease). As previously highlighted, the trial was more challenging than
anticipated and highlighted the difficulties that sufferers of IBS deal with from day to day. The Company has learnt
from these tribulations and we feel is now well placed to efficiently conduct Stage 2. We are also looking forward to
sharing the data and discussing the results with other corporates and already interested potential partners following
the analysis of Stage 1 of the IBS trial.”
Headline Data Overview – Stage 1
The below chart highlights that GaRP is having a clinically meaningful reduction in trial participants’ IBS-SSS Scores.
It is highly encouraging to see such a strong divergence between Placebo and the active Low and High Dose arms,
as this provides solid evidence that the drug is having an effect (working) whereas placebo is not.
As is the case with statistical analysis, increasing the population/patients in the trial (as is proposed for Stage 2 of the
study) is expected to provide statistically significant P values.
Annual Report 2023 Anatara Lifesciences Ltd The statistical analysis suggests that Stage 2 may require as few as a total of 50 participants on the optimum Low
Dose of product versus the placebo group to achieve the desired primary endpoint of at least a 20% improvement
(reduction) in IBS-SSS Scores, noting that this 20% reduction has been achieved in Stage 1.
Page 4
The below table details the median IBS-SSS Scores for Stage 1 and highlights the large positive change in patients’
IBS scores on the two drug arms (high and low dose). A patient achieving a 50%+ reduction in IBS Score translates
to a significant positive change in day-to-day life, a benefit that cannot be understated. An IBS-SSS score of 240 is
toward the high end of moderate IBS whilst 140 is mild IBS.
Annual Report 2023 Anatara Lifesciences Ltd Page 5
The IBS Symptom Severity Scale (IBS-SSS) is a global measure of IBS symptoms that aggregates patient ratings of
different, well-defined domains of IBS into a single overall score. The measure is utilised in clinical trials to monitor the
progress of the disease and treatment effect. A score below 75 is seen in healthy people or those in remission, whilst
75–175 indicates mild disease, 175–300 moderate disease and over 300 indicates severe disease. The Anatara GaRP-
IBS trial recruited patients with scores in the 175-350 range.
The Company notes the difficulties for patients on placebo in the trial for the full duration with patients suffering from
difficult to manage symptoms tending to drop out. The dropping out of 3 placebo patients from week 6 to week 8
highlights this, whilst the low or high dose arm from week 6 to week 8 participation remained stable.
This point is reinforced by the week 6 Placebo response showing a strong return to baseline, something that would
be expected for placebo, giving the Company optimism that larger patient numbers in Stage 2 would be likely to show
a placebo trend of returning to baseline in week 8 as it did for week 6.
The Company is not surprised or concerned about the high placebo response as the medical literature shows that
IBS clinical trials typically have a high placebo response on average of about 40%, very much in line with today’s
results1.
The outperformance of the low-dose over the high-dose enhances the potential clinical utility of GaRP in a
commercial setting. In terms of safety and ultimate commercial attractiveness of the product, achieving the desired
clinical utility with a lower dose is preferred for the following reasons:
•
•
•
Lower dose means less drug which means less chance of safety concerns or unwanted side effects;
Less drug needs to be manufactured per patient dose and this has obvious cost savings and improved margins;
Less chance of other drug to drug interactions.
Anatara’s objective is to advance the clinical development plan for GaRP as an effective treatment for IBS and bring
the product to market, part of which means registering the product with Therapeutic Goods Association of Australia
(TGA) and other jurisdictions. The Company will consider regulatory advice and processes towards achieving
approval given today’s positive human safety and efficacy data and the GRAS nature of the GaRP ingredients.
The Company has engaged with numerous corporates and companies ranging from the Speciality Pharmaceutical
to Vitamin & Wellness sectors regarding potential partnering. These companies are interested in expanding their
portfolio of complementary medicines and recognise the substantial global opportunity in gut health, the microbiome
and the importance of the role that the gut-brain axis plays in human health and well-being.
Large Unmet Need for an effective IBS Treatment
GaRP presents itself as a potential disease-modifying treatment that aims to positively impact a substantial proportion
of the population that suffer from the debilitating symptoms of digestive disorders, including irritable bowel syndrome
(IBS).
The lack of efficacious digestive treatments amplifies the clear unmet need and the significant market opportunity
for Anatara. The global Digestives & Intestinal treatment market amounts to US$18.64bn in 2023. Furthermore, GaRP
is restorative of the gastrointestinal tract lining and benefits the homeostasis of the microbiome which are beneficial
effects for the complex gut-brain axis.
1 https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6414074/#:~:text=Estimates%20of%20the%20placebo%20response,approximately%2040%259%E2%80%9311.
Annual Report 2023 Anatara Lifesciences Ltd Page 6
Trial Design – Stage 1
Recruitment for Stage 1 was finalised in June with approximately 70 patients from the more than 2,700 applicants
screened for enrolment. The GaRP-IBS trial is powered to deliver results that will validate and support efficacy claims.
There were 61 Intent to Treat patients in the final Stage 1 interim analysis with some other participants not included
after withdrawing/not complying following the randomisation stage.
The trial enrolled males and females 18-65 years of age with irritable bowel syndrome (IBS-SSS score of 175-350).
Patients were dosed orally twice daily for 8 weeks following a baseline period of 2 weeks.
The trial has been designed to return, if successful, a clinically meaningful and statistically significant result, with
primary endpoints of a reduction in the IBS-SSS (Irritable Bowel Severity Scoring System) and safety. Secondary
endpoints include quality of life, anxiety and depression and pain improvements.
GaRP-IBS Clinical Trial Design
Key endpoints for the Trial
Primary Endpoints
• Change in IBS-Severity Scoring System (IBS-SSS) between test and placebo groups compared to baseline
• Treatment-Related Adverse Events
Secondary Endpoints
IBS Adequate Relief (IBS-AR) compared to baseline
•
• Hospital Anxiety and Depression (HAD) Scale comparing to baseline
• Change in IBS quality of life (IBS QoL) points compared to baseline
• Safety markers
Exploratory Endpoints
• Plasma levels of specific inflammatory markers
• Use of rescue medication across the study group
• Alterations in gut microbiota with respect diversity and balance; correlation to IBS symptoms including overall
wellness
Annual Report 2023 Anatara Lifesciences Ltd Page 7
Other operational activities
GaRP continues to demonstrate excellent long-term stability. Testing has been completed on two clinical batches
of GaRP minitablets in HDPE 40cc bottles, which were manufactured under GMP conditions. Samples were tested
to ensure intactness of dosage form in the gastric pH and release of active ingredients in the targeted segments of
the ileum and colon. Testing was successful, indicating product stability for up to 12 months under the conditions
tested.
In addition, a batch of GaRP minitablets, manufactured under GMP, was packaged in foil sachets. Stability testing
was performed in this packaging in preparedness for suitable commercial production. Testing to date indicates
satisfactory stability to 9 months. Testing is ongoing with the 12 month time point approaching.
The Company is poised now to move from pilot production to commercial scale-up. Discussions have initiated
to continue to optimise manufacturing processes and formulation solutions to meet customer and market user
requirements.
In order to support and protect this the company has continued to expand and support ongoing patent applications
under a broad family of patents in key jurisdictions, including the EU and key APAC countries including Japan,
Korea, Hong Kong and Australia.
The Company announced in October 2022 the halting of the trial of “3FDC”components of the GaRP product for
psychological well-being with no safety concerns. The trial was subsequently terminated and there are no further
considerations to use the coated components for release in the lower intestinal tract (“3FDC”) as a subset of the
GaRP product.
Ongoing corporate initiatives
The Company continues to actively assess other opportunities in the human healthcare space and is appraising
projects suitable to add to the Company’s portfolio. The encouraging Stage 1 results from the IBS trial reinforce
that the GaRP product can be a meaningful treatment for not only IBS patients but for symptomatic relief of GIT
health sufferers who do not meet a diagnostic criteria. As well, the Company has established interest for other
mainstream indications to use GaRP as adjunctive therapy, such as IBD (Inflammatory Bowel Disease). The
Company will continue to focus efforts on partnering and progressing the trial to Stage 2.
The organisation has continued to streamline operations with the amalgamation of corporate and operational
location into a single office in SA and the closure of the Melbourne office.
The Company conducted a Rights Issue and Placement to sophisticated investors in October 2022, with the
shortfall finalised early in 2023, raising approximately $1.7m in total before fees. The Company received $923,235
via its Research and Development Tax rebate in September 2023. Returning a successful Stage 1 of its Irritable
Bowel Syndrome (IBS) Phase I/II trial, with the capital on hand, highlights the Company’s commitment to efficiently
and appropriately using shareholder funds.
There is continued interest in Anatara’s established products and formulations for animal health indications.
Discussions are ongoing with a major animal health product manufacturer with preparations for an in-field trial for
the use of Detach® in a large cohort of pigs underway. It is anticipated that, if successful, commercial terms will be
negotiated.
In addition, the positive results from Stage 1 human clinical trial for GaRP in IBS, have garnered interest for
expanding its use to companion animals.
Annual Report 2023 Anatara Lifesciences Ltd Page 8
Anatara Lifesciences Ltd
ABN: 41 145 239 872
Directors' Report
30 June 2023
The directors present their report, together with the consolidated financial statements of the Group, being Anatara
Lifesciences Ltd ("the Company") and its controlled entities ("the Group"), for the financial year ended 30 June 2023.
General information
Directors
The following persons held office as directors of the Company during the whole of the financial year and up to the date of
this report, except where otherwise stated:
Names
Dr David Brookes
Ms Sue MacLeman
Dr Jane Ryan
Mr Nicholas Haslam
Position
Executive Chair
Non-Executive Director
Non-Executive Director
Non-Executive Director
Appointed/Resigned
Resigned 7 December 2022
Appointed 7 December 2022
The following person held office as company secretary of the Company during the whole of the financial year and up to the
date of this report, unless otherwise stated:
Mr Stephen Denaro
Principal activities and significant changes in nature of activities
The Group is an Australian listed entity that is developing and commercialising innovative, evidence-based products for
gastrointestinal health where there is significant unmet need. Lead products are the Gastrointestinal ReProgramming
dietary supplement (GaRP) for humans and Detach® for animals.
There were no significant changes in the nature of the Group's principal activities during the financial year.
Review of operations and financial review
Review of operations
Anatara Lifesciences Ltd (ASX:ANR) is developing and commercialising innovative, evidence-based products for
gastrointestinal health where there is a significant unmet need. Throughout FY2023, the Company focused on the
development of its Gastrointestinal ReProgramming (GaRP) therapy towards clinical validation. Additionally, Anatara
remains active in assessing opportunities to enhance the Company’s portfolio to deliver value for our shareholders.
Gastrointestinal ReProgramming (GaRP) – Irritable Bowel Syndrome (IBS) - Trial Update
Following an extensive review of the Anatara clinical trials in the earlier part of FY2023, the GaRP-IBS trial progressed after
further modifications, which subsequently led to the announcement on the 6th of June 2023 that a preliminary statistical
analysis of the cohort of the initial 31 ITT (Intent-to-Treat) participants in the GaRP-IBS trial was conducted. The DSMB
(Data Safety Monitoring Board) reviewed the preliminary data and were pleasingly satisfied that the continuation of the
current trial protocol was supported, while noting the small data set. Importantly, there were no safety concerns across the
participant groups.
2
Annual Report 2023 Anatara Lifesciences Ltd Page 9
Anatara Lifesciences Ltd
ABN: 41 145 239 872
Directors' Report
30 June 2023
Review of operations (continued)
Gastrointestinal ReProgramming (GaRP) – Irritable Bowel Syndrome (IBS) - Trial Update
(continued)
This preliminary analysis encouraged the Company to progress Stage 1 of the trial to the full interim analysis point and
commence early planning for Stage 2 of the IBS trial as well as potential trials for other medical indications of the GaRP
product. Anatara’s GaRP product is a multicomponent, coated complementary medicine designed to address underlying
factors associated with chronic gastrointestinal conditions, such as IBS and IBD, and associated with everyday commonly
suffered gut symptoms. The GaRP formula is based on the coating and combination of GRAS (FDA “Generally Recognised
as Safe”) ingredients that are not associated with serious side effects such as toxicity or bleeding mechanisms. Anatara
aims to establish GaRP as a nonprescription/overthecounter (OTC), licensed product for the maintenance and restoration of
the gastrointestinal tract lining and homeostasis of the microbiome.
The recruitment for the GaRP-IBS trial was finalised in June 2023, with the ITT pool expected to exceed 70 participants
from the more than 2,700 applicants screened for enrolment. The GaRP IBS trial is powered to deliver results that will
validate and support claims. The Company is pleased to advise that the trial momentum and progress is consistent with the
previously revised guidance, with results of the interim analysis expected in late September 2023
GaRP has been developed as a potential disease-modifying treatment that aims to positively impact a large proportion of
the population that suffer from the debilitating digestive tract symptoms, including disorders such as irritable bowel
syndrome (IBS) and inflammatory bowel disease (IBD). The lack of efficacious digestive tract treatments amplifies the clear
unmet need to address and the significant market opportunity for Anatara. This high prevalence of sufferers of
gastrointestinal tract symptoms with a need for relief results in an estimated spend of $8 billion1 in the USA on non-
prescription products.
The GaRP-IBS trial was broadened from only the IBS-Diarrhoeal subtype to all IBS subtypes that sufferers experience, with
the exception of the constipation subtype, in Q2 2022. There was also an apparent trial design issue in that participants that
successfully went through screening could be “failed” in the baseline period before assignment to the study (i.e., to product
or placebo). The Anatara Advisory Board was reconvened on the 1st of September 2022 to review this issue and the
inclusion/exclusion criteria. The Advisory Board’s recommendations to enhance the participation process and assist
enrolment were consistent with Anatara’s proposed strategies. Following ethics regulatory review and approval, the
implementation of the redefined criteria led to delays in recruitment into the early new CY2023 as trial sites adjusted.
In November 2022, the ProPharma Group (PPG) were contracted as a new CRO (Clinical Research Organisation) as
Anatara recommitted internally to finalise the GaRP-IBS trial following the various trial review processes and overview of the
commercial potential. This was associated with a capital raise (see later in this Operational Report). In addition, new
communication methods to further enhance and accelerate recruitment were also put in place in December, and trial
management roles were outsourced to PPG.
GaRP-IBS Clinical Trial Design
There is strong mainstream support for a product that assists in the restoration and functioning of the gut lining and the
homeostasis of the microbiome. It has wider potential for medical indications, in particular inflammatory bowel disease
(IBD), and in general use for relief of common GIT symptoms. The Company is confident that a positive interim readout from
the GaRP-IBS trial will provide the foundation for broadening interest to other mainstream indications for the use of GaRP.
Importantly, and as expected, with the use of a coated combination of GRAS components, there have been no safety nor
tolerance concerns detected with the GaRP formulations, including the subset of “3FDC” used in the psychological
functioning study that was ultimately a trial that the Company terminated.
1 https://www.grandviewresearch.com/press-release/global-brain-health-supplements-market
3
Annual Report 2023 Anatara Lifesciences Ltd Page 10
Anatara Lifesciences Ltd
ABN: 41 145 239 872
Directors' Report
30 June 2023
Review of operations (continued)
GaRP-IBS Clinical Trial Design (continued)
The review of Company projects resulted in the described changes to enhance the GaRP-IBS trial and to the finalisation
of the trial using the “3FDC” components of the overall GaRP complementary medicine formulation looking at potential
influences on psychological functioning and wellbeing (As announced ASX 3 October 2022 and at AGM 11 November
2022). The GaRP complementary medicine includes a subset of 3 components formulated for release in the lower
intestinal tract which are labelled “3FDC” in house as a reference term.
3FDC - Psychological functioning trial terminated
The psychological functioning study being conducted by the CSIRO Adelaide using 3FDC was in the process of
recruiting ~100 patients with mild to moderate levels of depression, anxiety, or stress symptoms indicated by the
Depression, Anxiety and Stress Scale (DASS-21).
During a review of all Anatara clinical trials, it became apparent that the sample size required to detect a signal in this
study was likely to be higher than initially proposed to reach a statistically meaningful outcome. The Board of Anatara
elected to halt the study on the balance of outcome probability rather than considering a commitment to significant future
costs. As stated, there were no concerns around safety or tolerance with the 3FDC components.
The closure of the 3FDC trial was finalised in November 2022.
The GaRP-IBS trial has as secondary endpoints the Hospital Anxiety and Depression Scale (HADS) and Quality of Life
(QOL) assessments. These will allow for preliminary analyses of the influence of the total GaRP components, in
participants with gastrointestinal symptoms, on depression and anxiety. This anticipated insight regarding the
relationship of anxiety and depressive symptoms with gut disorders (which is in keeping with the general interest in the
gut-brain axis) may provide preliminary information about progressing the use of the full GaRP complementary medicine,
which includes the 3FDC components, for these indications.
The Company takes this opportunity to again thank the participants and trial sites involved in the GaRP-IBS trial and the
3FDC Psychological Functioning trial.
Board and Management Changes
The extensive review of operations and activities that took place from early in FY2023 followed the management
changes in June 2022 with Dr. David Brookes assuming the role of executive chair and Mr. John Michailidis joining as
COO(Chief Operations Officer).
Mr. Nicholas Haslam was appointed as non-executive director on the 7th of December 2022 (ASX announcement: Board
Changes 7 December 2022). As had been foreshadowed in the Annual Report ,Ms Sue MacLeman retired as a non-
executive director on the 7th of December 2022.
4
Annual Report 2023 Anatara Lifesciences Ltd Page 11
Anatara Lifesciences Ltd
ABN: 41 145 239 872
Directors' Report
30 June 2023
Review of operations (continued)
Ongoing corporate initiatives
In preparation for the GaRP interim trial results, Anatara is engaging with global pharma companies interested in expanding
their portfolio of complementary medicines. The trial is garnering interest from global leaders in the GI field due to the strong
evidence-based design of the GaRP trial.
The Company continues to actively assess other opportunities in the human healthcare space and is appraising projects
suitable to add to the Company’s portfolio.
There are also ongoing discussions for potential uses of Anatara’s established products and know-how for animal health
indications. The use of Anatara’s products in animal health present a promising but challenging potential, particularly in the
logistics of delivery and the variable efficacy seen so far. This has resulted in softened commercial interest from potential
partners though we continue to discuss with interested parties the products for use in weanling pigs, poultry production and
other indications. The global push for meat products free of antibiotics and animal husbandry not contributing to
antimicrobial resistance provides an opportunity, especially with Europe leading the way with a ban on zinc oxide (ZnO) as
an additive being put in place in June 2022.
Mucpharm Pty Ltd licence agreement
On the 10th March 2023, the Company announced an agreement with Mucpharm to licence technology from Anatara’s
portfolio for use in specific fields of interest, particularly mucin producing cancers and biofilms. The agreement provides
Anatara with royalties on sales and sub-licencing.
Mucpharm is a specialised company focused on the treatment of mucin-containing and secreting conditions. It is developing
the novel use of “BromAc”, a combination of bromelain and acetylcysteine, in specific fields including cystic tumours.
Operational changes
The Flemington Road office was vacated after a decision not to renew the lease in June 2023. This was used as the hub
for R&D which was no longer required with the trial established and related product being stored at a GMP facility.
The Company moved financial services to Adelaide based firm Perks early in 2023.
Financial position
The Company’s cash balance as at 30 June 2023 was $0.351 million (down from $1.12 million as at 30 June 2022). The
expenditure through the year was higher than anticipated due to trial activities and modifications. The company reports
that $923,236 was received from the Australian Taxation Office subsequent to year end under the Federal Government’s
Research and Development (R&D) tax incentive scheme for FY2023, in line with the Company’s expectation.
The increased expenditure contributed to a loss for the year of $2,023,188 (2022: $2,532,293).
The Company announced (ASX Release: 21 Oct 2022) it had received firm commitments for approximately $0.865m in a
successful Placement and launched a 1-for-3 Entitlement Offer to raise $0.832m. The Company subsequently
announced (ASX: 24 Nov 2022) that the Entitlement Offer had closed with the uptake raising $0.524m and that it would
seek to place the shortfall of $0.307m within three months. (Taylor Collison Limited acted as Lead Manager and Candour
Advisory Pty Ltd acted as Advisor to the Company).
The Company announced on 21st February 2023 that the shortfall from the previous entitlement offer (prospectus 21st
October 2022) had been placed in full to sophisticated and institutional investors raising an additional $307,791.
5
Annual Report 2023 Anatara Lifesciences Ltd Page 12
Anatara Lifesciences Ltd
ABN: 41 145 239 872
Directors' Report
30 June 2023
Financial position (continued)
The capital raise use was stated as reaching interim read-out in the form of a futility analysis on Stage 1 of the GaRP-IBS
(Irritable Bowel Syndrome) trial involving up to 90 participants, with enrolment anticipated to be completed in Q1CY2023
and the analysis no later than Q2CY2023. These timelines were revised, with analysis anticipated in late Q3CY2023. Funds
were also intended to further work on other opportunities to broaden Anatara’s portfolio in human health.
Other items
Significant changes in state of affairs
Significant changes in the state of affairs of the Group during the financial year were as follows:
During the year, there was a total of 24,714,286 new shares and 12,357,163 free-attaching options pursuant to Tranche 1
and Tranche 2 of a Placement announced on 21 October 2022. In addition, there was a total of 14,991,156 new shares and
7,495,595 free-attaching options issued to eligible shareholders who subscribed for Entitlement Offer announced on the
same date. A further 8,794,051 new shares and 4,397,026 free-attaching options were issued under a Shortfall Offer on 21
February 2023.
On 27 January 2023, the Group issued 68,871 ordinary shares as a result of exercise of performance rights.
Dividends paid or recommended
No dividends were declared or paid to members for the year ended 30 June 2023. The directors do not recommend that a
dividend be paid in respect of the financial year.
Events after the reporting date
No matters or circumstances have arisen since the end of the financial year which significantly affected or could
significantly affect the operations of the Group, the results of those operations or the state of affairs of the Group in future
financial years.
Likely future developments and results
Other than the information disclosed in the review of operations and activities, there are no likely developments or details on
the expected results of operations that the Group has not disclosed.
Environment Regulation
The Group's operations are not regulated by any significant environmental regulations under a law of the Commonwealth or
of a state or territory of Australia.
6
Annual Report 2023 Anatara Lifesciences Ltd Page 13
Anatara Lifesciences Ltd
ABN: 41 145 239 872
Directors' Report
30 June 2023
Director Information
Information on directors
Dr David Brookes
Experience
Executive Chair
Dr. Brookes has extensive experience in the health and biotechnology industries, first
becoming involved in the biotechnology sector in the late 1990’s as an analyst. Dr.
Brookes has since held Board positions in a number of ASX listed biotechnology
companies, including as Chairman of genomics solutions company, RHS Ltd, which was
acquired by Perkin Elmer Inc (NYSE: PKI) in June 2018. He has also Chaired the risk
and audit committees in ASX listed companies.
He is currently a Non-Executive Chairman of Dominion Minerals Limited (ASX:DLM)
and a Non-Executive Director of Island Pharmaceuticals (ASX:ILA) and TALI Digital
(ASX:TD1). He was Non-Executive Chairman of the Better Medical Group (unlisted)
until the sale of that company to private equity firm Livingbridge in January 2021.
Dr. Brookes maintains roles as a clinician and as a biotechnology industry consultant.
Dr Brookes, MBBS (Adelaide), is a Fellow of the Australian College of Rural and
Remote Medicine and a Fellow of the Australian Institute of Company Directors
Other current public
directorships
Dominion Minerals Limited (ASX: DLM), previously known as Factor
Therapeutics Limited (ASX: FTT), since 10 April 2019. Tali Digital Ltd (ASX: TD1), since
29 June 2020
Special
Responsibilities
Chair of Board
Member of the audit and risk management committee Member of the remuneration and
nominations committee
__________________________________________________________________________________
Directorships held in other listed entities during the three years prior to the current year:
None
__________________________________________________________________________________
7
Annual Report 2023 Anatara Lifesciences Ltd Page 14
Anatara Lifesciences Ltd
ABN: 41 145 239 872
Directors' Report
30 June 2023
Director Information (continued)
Information on directors (continued)
Ms Sue MacLeman
Experience
Non-Executive Director, resigned 7 December 2022
Sue MacLeman has more than 30 years’ experience as a pharmaceutical,
biotechnology and medical technology executive having held senior roles in corporate,
medical, commercial and business development. Sue has served as CEO and Board
member of several ASX, AIM and NASDAQ listed companies in the healthtech sector.
She is current Chair of MTPConnect, a not-for-profit industry growth centre for the
medtech, biotech and pharmaceutical sectors. She is also Chair of TALi Digital Ltd
(ASX:TDI), and a non-executive director of Planet Innovation Holdings and Omico. Sue
is appointed to several academic and government advisory boards.
Her broad commercial and technical experience is underpinned by a Bachelor of
Pharmacy from the University of Queensland, a Master of Laws from Deakin University
and a Master of Marketing from Melbourne Business School. She is also a Fellow and
Chair of the Health Forum at the Australian Academy of Technology and Engineering
(ATSE) and Fellow/Graduate of Australian Institute of Company Directors (AICD).
Other current public
directorships
Special
Responsibilities
Tali Digital Ltd (ASX: TD1), since 6 September 2018
Chair of Board
Chair of the audit and risk management committee.
Member of the remuneration and nominations committee.
__________________________________________________________________________________
Directorships held in other listed entities during the three years prior to the current year:
Palla Pharma Limited (ASX: PAL), until 21 April 2022 Oventus Medical Ltd (ASX: OVN), until 14 June 2022
__________________________________________________________________________________
8
Annual Report 2023 Anatara Lifesciences Ltd Page 15
Anatara Lifesciences Ltd
ABN: 41 145 239 872
Directors' Report
30 June 2023
Director Information (continued)
Information on directors (continued)
Mr Nicholas Haslam
Experience
Non-Executive Director, appointed 7 December 2022
Nick is a chartered accountant with ten years of experience in professional services with
M&A and restructuring at PwC, before undertaking leadership roles in professional
sports and medical device companies.
With respect to medical experience, Nick is formerly the Chief Executive Officer of
Plasma Shield Limited, an Australian air decontamination company, as well as
commercial manager of KangaTech Pty Ltd, an injury prevention business, with
customers spread across Australia, the US, and Europe.
Other current public
directorships
Special
Responsibilities
None
Chair of the audit and risk management committee
__________________________________________________________________________________
Directorships held in other listed entities during the three years prior to the current year:
None
__________________________________________________________________________________
10
Annual Report 2023 Anatara Lifesciences Ltd
Page 16
Anatara Lifesciences Ltd
ABN: 41 145 239 872
Directors' Report
30 June 2023
Director Information (continued)
Company secretary
The company secretary is Mr Stephen Denaro, appointed to the position on 24 February 2014. 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 Chartered Accountants Australia & New Zealand and the Australian Institute of Company Directors.
Meetings of directors
During the financial year, 19 meetings of directors (including committees of directors) were held. Attendances by each
director during the year were as follows:
Dr David Brookes
Ms Sue MacLeman
Dr Jane Ryan
Mr Nicholas Haslam
Directors'
Meetings
Audit Committee
Remuneration
Committee
Number
eligible to
attend
Number
attended
Number
eligible to
attend
Number
attended
Number
eligible to
attend
Number
attended
13
8
13
5
13
7
13
5
3
1
3
2
3
1
3
2
3
2
3
1
3
2
3
1
Indemnification and insurance of officers and auditors
(a) Insurance of officers
During the financial year, the Company Ltd paid a premium of $30,250 to insure the directors and secretaries of the
company and its Australian-based controlled entities, and the general managers of each of the divisions of the Group.
The liabilities insured are legal costs that may be incurred in defending civil or criminal proceedings that may be brought
against the officers in their capacity as officers of entities in the Group, and any other payments arising from liabilities
incurred by the officers in connection with such proceedings. This does not include such liabilities that arise from conduct
involving a willful breach of duty by the officers or the improper use by the officers of their position or of information to gain
advantage for themselves or someone else or to cause detriment to the Company. It is not possible to apportion the
premium between amounts relating to the insurance against legal costs and those relating to other liabilities.
(b) Indemnity of auditors
Anatara Lifesciences Ltd has agreed to indemnify their auditors, Grant Thornton Audit Pty Ltd, to the extent permitted by
law, against any claim by a third party arising from Anatara Lifesciences Ltd’s breach of their agreement. The indemnity
stipulates that Anatara Lifesciences Ltd will meet the full amount of any such liabilities including a reasonable amount of
legal costs.
Annual Report 2023 Anatara Lifesciences Ltd Page 17
Anatara Lifesciences Ltd
ABN: 41 145 239 872
Directors' Report
30 June 2023
Proceedings on behalf of 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.
No proceedings have been brought or intervened in on behalf of the company with leave of the Court under section 237 of
the Corporations Act 2001.
Options
Unissued ordinary shares
Unissued ordinary shares of Anatara Lifesciences Ltd under option and performance rights at the date of this report are as
follows:
Date options granted
Expiry date
Issue price of shares ($)
Number under options
26-11-2020
23-08-2023
16-11-2021
29-11-2021
28-11-2022
19-12-2022
21-02-2023
Total
25-11-2023
18-08-2025
14-11-202
25-11-2025
11-12-2025
11-12-2025
11-12-2025
0.2500
0.2256
0.2226
0.2030
0.0700
0.0700
0.0700
1,500,000
20,000
1,575,000
300,000
7,495,595
15,857,163
4,397,026
31,144,784
Date performance rights granted
Expiry date
Number under performance rights
31-08-2022
Total
31-08-2025
206,612
206,612
No option holder or performance rights holder has any right under the options or performance rights to participate in any
other share issue of the company or any other entity.
Options exercised during the year
No ordinary shares of the Company were issued during the year ended 30 June 2023 from the exercise of issued options.
Ordinary shares of the Company were issued during the year ended 30 June 2023 on the exercise of performance rights as
follows:
Date performance rights exercised
Number of shares issued
27-01-2023
Total
68,871
68,871
12
Annual Report 2023 Anatara Lifesciences Ltd Page 18
Anatara Lifesciences Ltd
ABN: 41 145 239 872
Directors' Report
30 June 2023
Non-audit Services
The board of directors, in accordance with advice from the audit committee, is satisfied that the provision of non-audit
services during the year is compatible with the general standard of independence for auditors imposed by the Corporations
Act 2001. The directors are satisfied that the services disclosed below did not compromise the external auditor's
independence for the following reasons:
The company may decide to employ the auditor on assignments additional to their statutory audit duties where the auditor’s
expertise and experience with the company and/or the Group are important. Details of the amounts paid or payable to the
auditor (Grant Thornton Audit Pty Ltd) for audit and non-audit services provided during the year are set out below.
The directors are satisfied that the provision of non-audit services by the auditor, as set out below, did not compromise the
auditor independence requirements of the Corporations Act 2001 for the following reasons:
•
•
all non-audit services are reviewed and approved by the audit committee prior to commencement to ensure they do
not adversely affect the integrity and objectivity of the auditor; and
the nature of the services provided do not compromise the general principles relating to auditor independence in
accordance with APES 110: Code of Ethics for Professional Accountants (including Independence Standards) set by
the Accounting Professional and Ethical Standards Board.
The following fees were paid or payable to the Grant Thornton Audit Pty Ltd and its related entities and other Grant
Thornton network firms for non-audit services provided during the year ended 30 June 2023:
Tax compliance services
Total remuneration for taxation services
Total remuneration for non-audit services
Auditor's Independence Declaration
2023
38,000
38,000
38,000
2022
45,835
41,835
41,835
The auditor's independence declaration in accordance with section 307C of the Corporations Act 2001 for the year ended
30 June 2023 has been received and can be found on page 22 of the consolidated financial report.
Rounding of Amounts
The Company is an entity to which ASIC Corporations (Rounding in Financial/Directors' Report) Instrument 2016/191
applies and, accordingly, amounts in the consolidated financial statements and directors' report have been rounded to the
nearest dollar.
14
Annual Report 2023 Anatara Lifesciences Ltd Anatara Lifesciences Ltd
ABN: 41 145 239 872
Directors' Report
30 June 2023
Remuneration report (audited)
The directors present the Company's 2023 remuneration report, outlining key aspects of our remuneration policy and
framework, and remuneration awarded this year.
The report is structured as follows:
a) Key management personnel (KMP) covered in this report
b) Remuneration policy and link to performance
c) Elements of remuneration
d) Link between remuneration and performance
e) Remuneration expenses
f) Contractual arrangements with executive KMPs
g) Non-executive director arrangements
h) Additional statutory information
(a) Key management personnel covered in this report
Dr David Brookes, Executive Chair
Ms Sue MacLeman, Non-Executive Director - Resigned 7 December 2022
Dr Jane Ryan, Non-Executive Director
Mr Nicholas Haslam, Non-Executive Director - Appointed 7 December 2022
Mr Simon Erskine, Chief Development Officer
Mr John Michailidis, Chief Operating Officer
Page 19
15
Annual Report 2023 Anatara Lifesciences Ltd Page 20
Anatara Lifesciences Ltd
ABN: 41 145 239 872
Directors' Report
30 June 2023
Remuneration report (audited) (continued)
(b) Remuneration policy and link to performance
The remuneration and nominations committee of the Company is mainly comprised of independent non-executive directors.
The committee reviews and determines the Company's remuneration policy and structure annually to ensure it remains
aligned to business needs, and meets Company remuneration principles. In particular, the Board aims to ensure that
remuneration practices are:
•
•
•
•
Competitive and reasonable, enabling the Company to attract and retain key talent;
Aligned to the Company's strategic and business objectives and the creation of shareholder value;
Transparent and easily understood; and
Acceptable to shareholders.
Element
Purpose
Performance Metrics
Potential Value
Fixed remuneration
(FR)
Provide competitive
market remuneration
Nil
Short-term incentives
(STI)
Reward for in-year
performance and
retention
Long-term incentives
(LTI)
Alignment to long-term
shareholder value
KPI achievement, determined
by remuneration and
nominations committee
KPI achievement, determined
by remuneration and
nominations committee
Positioned at the market rate
CEO: 30% of FR
CEO: 300,000 unlisted 4 year
options at $0.2030 exercise
price, vesting over a 3-year
period from the grant date
Assessing performance
The remuneration and nominations committee is responsible for assessing performance against KPIs and determining the
STI and LTI to be paid. To assist in this assessment, the committee receives data from independently run surveys.
Performance is monitored on an informal basis throughout the year and a formal evaluation is performed annually.
Securities trading policy
The Company's securities trading policy applies to all directors and executives, see
https://anataralifesciences.com/investors/corporate-governance.
It only permits the purchase or sale of company securities during certain periods:
•
Product development and commercialisation.
16
Annual Report 2023 Anatara Lifesciences Ltd Page 21
Anatara Lifesciences Ltd
ABN: 41 145 239 872
Directors' Report
30 June 2023
Remuneration report (audited) (continued)
(c) Elements of remuneration
(i) Fixed annual remuneration (FR)
Key management personnel may receive their fixed remuneration as cash, or cash with non-monetary benefits such as
health insurance and car allowances. Fixed remuneration is reviewed annually, or on promotion. It is benchmarked against
market data for comparable roles in companies in a similar industry and with similar market capitalisation. The committee
aims to position executives at or near the median, with flexibility to take into account capability, experience, value to the
organisation and performance of the individual.
(ii) Short-term incentives (STI)
All executives are entitled to participate in a short-term incentive scheme which provides for executive employees to receive
a combination of short-term incentives (STI) as part of their total remuneration if they achieve certain performance
indicators as set by the board. The short-term incentivesI can be paid either by cash, or a combination of cash and the
issue of equity in the company, at the determination of the remuneration and nominations committee and board.
The company’s CEO and COO are entitled to short-term incentives in the form of cash bonus up to 40% and 30% of fixed
remuneration, respectively, against agreed various key performance indicators (KPIs), including target EBITDA,
appreciation in share price value, retention of key talent, and achievement of major project milestones. On an annual basis,
KPIs are reviewed and agreed in advance of each financial year and include financial and non-financial company and
individual performance goals that relate to:
• Operational management.
•
•
Investor relations and shareholder value creation.
R&D activities.
(iii) Long-term incentives (LTI)
Executives may also be provided with longer-term incentives through the Company’s ‘executive option plan’ (EOP), that
was approved by shareholders at the annual general meeting held on 26 November 2020. The aim of the EOP is to allow
executives to participate in, and benefit from, the growth of the Company as a result of their efforts and to assist in
motivating and retaining those key employees over the long-term. Continued service is the condition attached to the vesting
of the options. The board at its discretion determines the total number of options granted to each executive.
Annual Report 2023 Anatara Lifesciences Ltd Page 22
Anatara Lifesciences Ltd
ABN: 41 145 239 872
Directors' Report
30 June 2023
Remuneration report (audited) (continued)
(d) Link between remuneration and Statutory performance indicators
The directors aim to align executive remuneration to strategic and business objectives and the creation of shareholder
wealth. The table below shows measures of the Group’s financial performance over the last five years as required by the
Corporations Act 2001. However, these are not necessarily consistent with the measures used in determining the variable
amounts of remuneration to be awarded to KMPs. As a consequence, there may not always be a direct correlation between
the statutory key performance measures and the variable remuneration awarded.
Loss for the year attributable to owners
($)
Basic loss per share (cents)
Share price at year-end ($)
2.07
0.03
2023
2,023,188
2022
2,532,293 1,995,874 3,364,644 2,868,272
2020
2021
2019
3.56
0.06
3.18
0.16
6.77
0.13
5.80
0.26
The Company’s earnings have remained negative since inception due to the nature of the business. Shareholder wealth
reflects this speculative and volatile market sector. No dividends have ever been declared by the Company. The Company
continues to focus on revenue growth with the objective of achieving key commercial milestones in order to add further
shareholder value.
Annual Report 2023 Anatara Lifesciences Ltd Page 23
Anatara Lifesciences Ltd
ABN: 41 145 239 872
(e) Remuneration expenses for the year ended 30 June 2023
The following tables show details of the remuneration expense recognised for the Group's key management personnel for
the current and previous financial year measured in accordance with the requirements of the accounting standards.
Short
term
Post-
employment
Superannuation
Long
term
Long
service
leave
Share Based Payments
Options
Performance
rights
Total
2023
Non-
executive
directors
Ms Sue
MacLeman (1)
Dr Jane Ryan
Mr Nicolas
Haslam (2)
Executive
director
Dr David
Brookes
Other KMP
Mr Simon
Erskine (3)
Mr John
Michailidis
Total KMP
compensation
$
$
27,000
61,154
34,154
152,22
3
213,22
2
107,50
0
595,25
3
2,835
6,421
3,586
15,983
21,404
11,288
61,517
$
-
-
-
$
6,412
14,830
-
$
-
-
-
-
$
36,247
82,405
37,740
29,661
197,867
584
8,832
69,780
313,822
-
-
-
118,788
584
59,735
69,780
786,869
Notes
(1) Ms Sue MacLeman resigned on 7 December 2022.
(2) Mr Nicholas Haslam was appointed on 7 December 2022.
(3) Subsequent to year end, 1,611,176 performance rights have been issued to Mr Simon Erskine, as part of his final performance bonus of
$54,780. These performance rights have nil exercise price and expire on 1 August 2026.
Annual Report 2023 Anatara Lifesciences Ltd Page 24
Anatara Lifesciences Ltd
ABN: 41 145 239 872
Directors' Report
30 June 2023
Remuneration report (audited) (continued)
(e) Remuneration expenses for the year ended 30 June 2023 (continued)
Short
term
Post-
employment
Superannuation
$
$
65,116
6,511
61,096
6,109
108,019
10,802
384,227
39,500
95,085
9,327
Long
term
Long
service
leave
$
-
-
-
(8,471)
(13,391)
-
-
Share Based Payments
Options
Performance
rights
Total
$
$
$
15,638
15,638
31,275
-
-
-
-
-
-
87,265
82,843
150,096
415,256
91,021
826,481
713,543
72,249
(21,862)
62,551
2023
Non-
executive
directors
Ms Sue
MacLeman (1)
Dr Jane Ryan
Executive
director
Dr David
Brookes
Other KMP
Mr Steven
Lydeamore (2)
Dr Michael
West (3)
Total KMP
compensation
Notes
(1) Dr David Brookes transitioned from Non-Executive Chair to Executive Chair on 24 June 2022.
(2) Mr Steven Lydeamore resigned on 24 June 2022.
(3) Dr Michael West resigned on 9 November 2021.
(f) Contractual arrangements with executive KMPs
Name:
Position:
Contract duration:
Notice period:
Fixed remuneration:
Name:
Positon:
Contract duration:
Notice period:
Fixed remuneration:
Name:
Position:
Contract duration:
Notice period:
Fixed remuneration:
Dr David Brookes
Executive Chair
Unspecified
Unspecified
$150,000 per annum, plus 11% superannuation
Mr Simon Erskine
Chief Development Officer
Unspecified
3 months by either party
$220,000 per annum, plus 11% superannuation
Mr John Michailidis
Chief Operating Officer
Unspecified
Unspecified
$8,000 per month, adjusted based on time commitment, plus 11%
superannuation
Annual Report 2023 Anatara Lifesciences Ltd Page 25
Anatara Lifesciences Ltd
ABN: 41 145 239 872
Directors' Report
30 June 2023
Remuneration report (audited) (continued)
(g) Non-executive director arrangements
Non-executive directors receive a board fee and fees for chairing but not participating on board committees, see table
below. They do not receive performance-based pay or retirement allowances. The fees are exclusive of superannuation.
The chair receives higher base fee than other non-executive directors, reflective of the additional demands and
responsibilities of this role.
Fees are reviewed annually by the board taking into account comparable roles and market data provided by the board’s
independent remuneration adviser.
The maximum annual aggregate directors’ fee pool limit is $500,000, adopted on initial public offering of the Company on
14 October 2014.
Base fees
Chair
Other non-executive directors
$150,000
$60,000
(h) Additional statutory information
(i) Relative proportions of fixed vs variable remuneration expense
The following table shows the relative proportions of remuneration that are linked to performance and those that are fixed,
based on the amounts disclosed as statutory remuneration expense in (e) above.
Fixed remuneration
2022
2023
%
%
At risk - STI
2023
%
2022
%
At risk - LTI
2023
%
2022
%
Non-executive
directors
Ms Sue MacLeman
(1)
Dr Jane Ryan
Mr Nicolas Haslam
(2)
Executive
director
82
82
100
82
81
-
Dr David Brookes
85
79
Other KMP
Mr Steven
Lydeamore (3)
Dr Michael West (4)
Mr Simon Erskine
Mr John Michailidis
-
-
75
100
100
100
-
-
-
-
-
-
-
-
-
-
Notes:
(1) Ms Sue MacLeman resigned on 7 December 2022.
(2) Mr Nicholas Haslam was appointed on 7 December 2022.
(3) Mr Steven Lydeamore resigned on 24 June 2022.
(4) Dr Michael West resigned on 9 November 2021.
-
-
-
-
-
-
-
-
18
18
-
15
-
-
25
-
18
19
-
21
-
-
-
-
21
Annual Report 2023 Anatara Lifesciences Ltd Page 26
Anatara Lifesciences Ltd
ABN: 41 145 239 872
Directors' Report
30 June 2023
Remuneration report (audited) (continued)
(h) Additional statutory information (continued)
(ii) Terms and conditions of the share-based payment arrangements
The terms and conditions of each grant of options affecting remuneration in the current or a future reporting year are
as follows:
Grant Date
16-11-2021
16-11-2021
29-11-2021
29-11-2021
29-11-2021
Vesting and
exercised date
Expiry date
Exercise price
($)
16-11-2022
16-11-2023
25-11-2022
25-11-2023
25-11-2024
14-11-2025
14-11-2025
25-11-2025
25-11-2025
25-11-2025
0.2226
0.2226
0.2030
0.2030
0.2030
Value per option
at grant date ($)
0.0748
0.0748
0.0708
0.0708
0.0708
Vested (%)
100%
81%
100%
80%
53%
The vesting criteria for the options to become exercisable is that the option holder remains an employee of the company during the vesting
period
(iii) Reconciliation of ordinary shares, performance rights and options held by KMP Share holdings
Share Holdings
Balance at beginning
of year (1)
Granted as
remuneration
Exercised
Other
Changes
(2)
Balance at the end
of year (3)
30 June 2023
No.
Shares
Dr David Brookes
Ms Sue MacLeman (4)
Dr Jane Ryan
Mr Nicholas Haslam
Mr Simon Erskine
Mr John Michailidis
300,000
78,069
183,078
-
-
-
No
.
-
-
-
-
-
-
561,147
No.
No.
No.
-
-
-
-
-
-
-
1,864,286
-
142,858
-
-
2,164,286
78,069
325,936
-
-
499,999
499,999
-
2,507,143 3,068,290
Notes:
(1) Balance may include shares held prior to individuals becoming a KMP. For individuals who became a KMP during the year, the balance
is at the date they became a KMP.
(2) Other changes incorporates changes from the acquisition of shares.
(3) For a former KMP, the balance is at the date they cease to be a KMP.
(4) Ms Sue MacLeman resigned on 7 December 2022.
22
Annual Report 2023 Anatara Lifesciences Ltd Page 27
Anatara Lifesciences Ltd
ABN: 41 145 239 872
Directors' Report
30 June 2023
Remuneration report (audited) (continued)
Balance at
beginning of year
(1)
Granted as
remuneration
Exercised
Other
changes
(2)
30 June 2023
No.
No.
No.
No.
Balance
at the end
of year
(3)
No.
Vested and
exercisable
No.
Options
Dr David Brookes
Ms Sue
MacLeman (4)
Dr Jane Ryan
Mr Nicholas
Haslam
965,658
572,548
515,658
-
Mr Simon Erskine
300,000
Mr John
Michailidis
Notes:
-
2,353,864
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
866,485
1,832,143
1,307,143
(347,548)
225,000
225,000
5,774
-
521,432
-
290,658
-
-
-
300,000
100,000
250,000
250,000
250,000
774,711
3,128,575
2,172,801
(1) Balance may include options held prior to individuals becoming a KMP. For individuals who became a KMP during the year, the
balance is at the date they became a KMP.
(2) Other changes incorporate changes from the acquisition of shares or options.
(3) For a former KMP, the balance is at the date they cease to be a KMP.
(4) Ms Sue MacLeman resigned on 7 December 2022.
Performance Rights
30 June 2023
Performance Rights
Dr David Brookes
Ms Sue MacLeman (4)
Dr Jane Ryan
Mr Nicholas Haslam
Mr Simon Erskine (5)(6)
Mr John Michailidis
Total
Balance at
beginning of year
(1)
No.
Granted as
remuneration
Exercised
No.
No.
Other
changes
(2)
No.
Balance at the
end of year
(3)
No.
-
-
-
-
-
-
-
-
-
-
-
206,612
-
206,612
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
206,612
-
206,612
(1) Balance may include rights held prior to individuals becoming a KMP. For individuals who became a KMP during the year, the
balance is at the date they became a KMP.
(2) Other changes incorporates changes from the acquisition of shares or options.
(3) For a former KMP, the balance is at the date they cease to be a KMP.
(4) Ms Sue MacLeman resigned on 7 December 2022.
(5) On 31 August 2023, 206,612 performance rights with nil exercise price and an expiration date of 31 August 2025 were issued to
Mr Simon Erskine as part of his performance bonus for the year ended 30 June 2022. The value of these performance rights was
recognised in the statement of profit or loss in the previous financial year.
(6) Subsequent to year end, 1,611,176 performance rights have been issued to Mr Simon Erskine, as part of his performance bonus
of $54,780. These performance rights have nil exercise price and expire on 1 August 2026.
23
Annual Report 2023 Anatara Lifesciences Ltd
Page 28
Anatara Lifesciences Ltd
ABN: 41 145 239 872
Directors' Report
30 June 2023
Remuneration report (audited) (continued)
(i) Other transactions with key management personnel
There are no other transactions with key management personnel of the Company.
(j) Voting of shareholders at last year's annual general meeting
The Company received more than 87 percent of favourable votes on its remuneration report for the 2022 financial
year. The Company did not receive any specific feedback at the 2022 annual general meeting or throughout the year
on its remuneration practices.
End of Audited Remuneration Report
This director's report, incorporating the remuneration report, is signed in accordance with a resolution of the Board of
Directors.
Director: ...............................................................
Dr David Brookes, Executive Chair
Melbourne
Dated this
day of August 2023
23
24
Annual Report 2023 Anatara Lifesciences Ltd Anatara Lifesciences Ltd
ABN: 41 145 239 872
Corporate Governance Statement
30 June 2023
Page 29
The Company and the board are committed to achieving and demonstrating the highest standards of corporate
governance. The Company has reviewed its corporate governance practices against the Corporate Governance Principles
and Recommendations (4th edition) published by the ASX Corporate Governance Council.
The 2023 corporate governance statement is dated as at 30 June 2022 and reflects the corporate governance practices in
place throughout the 2023 financial year.
A description of the Group’s current corporate governance practices is set out in the Group’s corporate governance
statement which can be viewed at: https://anataralifesciences.com/investors/corporate-governance/.
25
Annual Report 2023 Anatara Lifesciences Ltd Page 30
Grant Thornton Audit Pty Ltd
Grant Thornton House
Level 3
170 Frome Street
Adelaide SA 5000
GPO Box 1270
Adelaide SA 5001
T +61 8 8372 6666
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 2023, I declare that, to the best of my knowledge and
belief, there have been:
a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the
audit; and
b no contraventions of any applicable code of professional conduct in relation to the audit.
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
J L Humphrey
Partner – Audit & Assurance
Adelaide, 23 August 2023
www.grantthornton.com.au
ACN-130 913 594
Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 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 Limited 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 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards
Legislation.
Annual Report 2023 Anatara Lifesciences Ltd Anatara Lifesciences Ltd
ABN: 41 145 239 872
Consolidated Statement of Profit or Loss and Other Comprehensive
Income
For the Year Ended 30 June 2023
Page 31
Other income
General and administrative expenses
Research and development expenses
Operating loss
Finance income
Finance expenses
Finance income - net
(Loss) before income tax
Income tax expense
(Loss) for the year
Other comprehensive income
Other comprehensive income for the year, net of tax
Total comprehensive (loss) for the year
Total comprehensive (loss) attributable to:
Owners of Anatara Lifesciences Ltd
(Loss) per share attributable to the ordinary equity holders of
the company
From continuing operations:
Basic earnings per share (cents)
Diluted earnings per share (cents)
Note
6(a)
6(b)
6(b)
2023
$
1,245,846
2022
$
487,235
(1,682,693)
(1,602,231)
(2,275,032)
(747,181)
(2,039,078)
(2,534,978)
18,260
(2,370)
15,890
6,005
(3,320)
2,685
(2,023,188)
(2,532,293)
7
-
-
(2,023,188)
(2,532,293)
-
-
(2,023,188)
(2,532,293)
(2,023,188)
(2,532,293)
22
22
(2.07)
(2.07)
(3.56)
(3.56)
The accompanying notes form part of these financial statements.
23
Annual Report 2023 Anatara Lifesciences Ltd Anatara Lifesciences Ltd
ABN: 41 145 239 872
Consolidated Statement of Financial Position
As At 30 June 2023
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Other financial assets
Other assets
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Property, plant and equipment
Right-of-use assets
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
LIABILITIES
CURRENT LIABILITIES
Trade and other payables
Employee benefits
Lease liabilities
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Lease liabilities
Employee benefits
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
Page 32
Note
2023
$
2022
$
8
9
10
11
11
351,184
1,004,078
50,000
10,853
1,120,204
508,525
50,000
22,011
1,416,115
1,700,740
3,258
-
3,258
7,683
59,234
66,917
1,419,373
1,767,657
474,462
19,705
-
494,167
-
665
665
301,938
35,534
20,656
358,128
45,145
81
45,226
494,832
403,354
924,541
1,364,303
12
13
21,368,718
347,698
(20,791,875)
19,908,471
439,488
(18,983,656)
924,541
1,364,303
The accompanying notes form part of these financial statements.
24
Annual Report 2023 Anatara Lifesciences Ltd Page 33
Anatara Lifesciences Ltd
ABN: 41 145 239 872
Consolidated Statement of Changes in Equity
For the Year Ended 30 June 2023
2023
Balance at 1 July 2022
(Loss) for the year
Total comprehensive (loss) for the year
Transactions with owners in their
capacity as owners
Issue of shares
Less: capital raising costs
Share based payment expense - options
Options forfeited/lapsed
Performance rights issued
Performance rights exercised
Total transactions with owners in their
capacity as owners
Balance at 30 June 2023
2022
Balance at 1 July 2021
(Loss) for the year
Total comprehensive (loss) for the year
Transactions with owners in their
capacity as owners
Performance rights exercised
Less: capital raising costs
Share based payment expense - options
Options forfeited/lapsed
Total transactions with owners in their
capacity as owners
Balance at 30 June 2022
Issued
Capital
$
Note
Reserves
$
Accumulated
losses
$
Total
$
19,908,471
-
-
439,488
-
(18,983,656)
(2,023,188)
1,364,303
(2,023,188)
-
(2,023,188)
(2,023,188)
12
12
20(b)
13
20
20
1,697,482
(242,235)
-
-
-
5,000
-
53,550
54,629
(214,969)
20,000
(5,000)
-
-
-
214,969
-
-
1,460,247
(91,790)
214,969
21,368,718
347,698
(20,791,875)
1,697,482
(188,685)
54,629
-
20,000
-
1,583,426
924,541
Issued
capital
$
Note
Reserves
$
Accumulated
losses
$
Total
$
19,755,634
-
-
678,492
-
(16,604,008)
(2,532,293)
3,830,118
(2,532,293)
-
(2,532,293)
(2,532,293)
20
12
20
13
157,837
(5,000)
-
-
(157,837)
-
71,478
(152,645)
-
-
-
152,645
152,837
(239,004)
152,645
19,908,471
439,488
(18,983,656)
-
(5,000)
71,478
-
66,478
1,364,303
The accompanying notes form part of these financial statements.
Annual Report 2023 Anatara Lifesciences Ltd Anatara Lifesciences Ltd
ABN: 41 145 239 872
Consolidated Statement of Cash Flows
For the Year Ended 30 June 2023
Page 34
Note
2023
$
2022
$
CASH FLOWS FROM OPERATING ACTIVITIES:
Payments to suppliers and employees (inclusive of GST)
Interest received
Government grants and tax incentives
Other income
Net cash (used in) operating activities
14
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments for property, plant and equipment
Payments for term deposits
Net cash (used in) investing activities
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issue of shares
Share issue transaction costs
Principal elements of finance lease payments
Net cash provided by/(used in) financing activities
Net (decrease) in cash and cash equivalents held
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of financial year
(3,071,976)
17,582
771,898
24,600
(2,257,896)
(2,994,648)
6,575
736,477
18,720
(2,232,876)
(1,726)
-
(1,726)
1,697,482
(188,685)
(18,195)
1,490,602
(6,561)
(50,000)
(56,561)
-
(5,000)
(17,436)
(22,436)
(769,020)
1,120,204
(2,311,873)
3,432,077
8
351,184
1,120,204
The accompanying notes form part of these financial statements.
26
Annual Report 2023 Anatara Lifesciences Ltd Page 35
Anatara Lifesciences Ltd
ABN: 41 145 239 872
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
The consolidated financial report covers Anatara Lifesciences Ltd ("the Company") and its controlled entities ("the Group").
Anatara Lifesciences Ltd is a for-profit Company limited by shares, incorporated and domiciled in Australia.
The separate financial statements of the parent entity, Anatara Lifesciences Ltd, have not been presented within this
financial report as permitted by the Corporations Act 2001 and Australian Accounting Standards requirements.
The financial report was authorised for issue by the Directors on
August 2023.
Comparatives are consistent with prior years, unless otherwise stated.
2 Basis of Preparation
The financial statements are general purpose financial statements that have been prepared in accordance with
the Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board
and the Corporations Act 2001. The Group is a for-profit entity for financial reporting purposes under Australian
Accounting Standards.
(a)
Compliance with IFRS
The financial statements of the Group also comply with International Financial Reporting Standards ("IFRS") as
issued by the International Accounting Standards Board ("IASB").
(b)
Reporting basis and conventions
The financial statements, except for the cash flow information, have been prepared on an accruals basis and
are based on historical costs modified, where applicable, by the measurement at fair value of selected non-
current assets, financial assets and financial liabilities.
(c)
Going concern
The financial statements have been prepared on the going concern basis, which contemplates continuity of
normal business activities and the realisation of assets and settlement of liabilities in the normal course of
business. As disclosed in the financial statements, the Group incurred a loss of $2,023,188 (2022: $2,532,293)
and had operating cash outflows of $2,204,346 (2022: $2,232,876) for the year ended 30 June 2023. As at 30
June 2023, the Group held cash and cash equivalents of $351,184 (2022: $1,120,204). In the process of
approving the Group’s internal forecast and business plan for upcoming financial years, the board has
considered the cash position of the Group within the next 12 months from the date of this report. The Group’s
internal forecast and business plan for the upcoming financial year includes capital raising.
The directors have assessed that the Company could raise additional capital to meet the Group’s contractual
commitments and working capital requirements. Notwithstanding the uncertainty over either of these events
occurring, based on the above considerations the board has assessed the resources and opportunities
available to the Group, and consequently believe that the Group will be able to repay its debts as and when
they fall due and are of the opinion that the financial statements have been appropriately prepared on a going
concern basis.
In the event that these measures are unsuccessful, there would be a material uncertainty which may cast
significant doubt as to whether the Group will continue as a going concern and therefore whether it will realise
its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the
financial report.
The financial report does not include any adjustments related to the amounts or classification of recorded
assets or liabilities that might be necessary if the Group does not continue as a going concern.
27
Annual Report 2023 Anatara Lifesciences Ltd Page 36
Anatara Lifesciences Ltd
ABN: 41 145 239 872
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
2 Basis of Preparation (continued)
(d)
New and amended standards adopted by the Group
The Group has adopted all of the new or amended Accounting Standards and Interpretations issued by the
Australian Accounting Standards Board ("AASB") that are mandatory for the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early
adopted.
3 Summary of Significant Accounting Policies
Significant accounting policies adopted in the preparation of these financial statements are presented below
and are consistent with prior reporting periods unless otherwise stated.
(a)
Basis for consolidation
A list of controlled entities is contained in Note 17 to the financial statements.
Subsidiaries
Subsidiaries are all entities (including structured entities) over which the parent has control. Control is
established when the parent is exposed to, or has rights to variable returns from its involvement with the entity
and has the ability to affect those returns through its power to direct the relevant activities of the entity.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are
deconsolidated from the date that control ceases. The acquisition method of accounting is used to account for
business combinations by the Group.
Intercompany transactions, balances and unrealised gains on transactions between Group companies are
eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of
the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure
consistency with the policies adopted by the Group.
(b)
Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker. This has been identified as the executive chair.
28
Annual Report 2023 Anatara Lifesciences Ltd Page 37
Anatara Lifesciences Ltd
ABN: 41 145 239 872
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
3
Summary of Significant Accounting Policies (continued)
(c)
Foreign currency transactions and balances
Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured using the currency of
the primary economic environment in which the entity operates (‘the functional currency’). The consolidated
financial statements are presented in Australian dollars ($), which is the Group's functional and presentation
currency.
Transaction and balances
Foreign currency transactions are translated into the functional currency using the exchange rates at the dates
of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and
from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange
rates are generally recognised in profit or loss. Foreign exchange gains and losses that relate to borrowings are
presented in the consolidated income statement, within finance costs. All other foreign exchange gains and
losses are presented in the consolidated statement of profit or loss on a net basis within other gains/(losses).
(d)
Revenue and other income
Grant revenue
Transactions involving government grants received are accounted for by applying AASB 120 Accounting
for Government Grants and Disclosure of Government Assistance. Grants from the government are recognised
at their fair value where there is a reasonable assurance that the grant will be received and the Group will
comply with all attached conditions. In relation to Research and Development tax incentive, as the estimate is
able to be reliably measured, the research and development tax incentive is measured on an accruals basis.
Research and Development Tax Incentive
In relation to Research and Development tax incentive, as the estimate is able to be reliably measured, the
research and development tax incentive is measured on an accruals basis.
(e)
Income tax
The income tax expense or credit for the year is the tax payable or receivable on the current year’s taxable
income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets
and liabilities attributable to temporary differences and to unused tax losses.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the
end of the reporting year in the countries where the Company and its subsidiaries and associates operate and
generate taxable income. Management periodically evaluates positions taken in tax returns with respect to
situations in which applicable tax regulation is subject to interpretation. It establishes provisions where
appropriate on the basis of amounts expected to be paid to the tax authorities.
29
Annual Report 2023 Anatara Lifesciences Ltd Page 38
Anatara Lifesciences Ltd
ABN: 41 145 239 872
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
3
Summary of Significant Accounting Policies (continued)
(e)
Income tax (continued)
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the
tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However,
deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill. Deferred income
tax is also not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a
business combination that at the time of the transaction affects neither accounting nor taxable profit or loss.
Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted
by the end of the reporting year and are expected to apply when the related deferred income tax asset is
realised or the deferred income tax liability is settled.
Deferred tax assets are recognised only if it is probable that future taxable amounts will be available to utilise
those temporary differences and losses. Current and deferred tax is recognised in profit or loss, except to the
extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the
tax is also recognised in other comprehensive income or directly in equity, respectively.
(f)
Leases
With the exception of short-term, low value and immaterial leases, right-of-use assets and corresponding lease
liabilities are recognised in the consolidated statement of financial position. Straight-line operating lease
expense recognition is replaced with a depreciation charge for the right-of-use assets (included in operating
costs) and an interest expense on the recognised lease liabilities (included in finance costs).
Payments associated with short-term leases, low value and immaterial leases are recognised on a straight-line
basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less.
(g)
Impairment of non-financial assets
Intangible 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. The recoverable amount is the higher of an asset’s fair value
less costs of disposal 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 which are largely independent of the cash
inflows from other assets or groups of assets (cash-generating units). Non-financial assets other than goodwill
that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting
year.
(h)
Cash and cash equivalents
For the purpose of presentation in the consolidated statement of cash flows, cash and cash equivalents
includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments
with original maturities of three months or less that are readily convertible to known amounts of cash and which
are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within
borrowings in current liabilities in the consolidated statement of financial position.
(i)
Trade receivables
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the
effective interest method, less loss allowance. See note 9 for further information about the Group’s accounting
for trade receivables and note 15(b) for a description of the Group’s impairment policies.
Annual Report 2023 Anatara Lifesciences Ltd Page 39
Anatara Lifesciences Ltd
ABN: 41 145 239 872
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
3
Summary of Significant Accounting Policies (continued)
(j)
Financial instruments
Financial instruments are recognised initially on the date that the Group becomes party to the contractual
provisions of the instrument.
On initial recognition, all financial instruments are measured at fair value plus transaction costs (except for
instruments measured at fair value through profit or loss where transaction costs are expensed as incurred).
Financial assets
All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value,
depending on the classification of the financial assets.
Classification
On initial recognition, the Group classifies its financial assets into the following categories, those measured at:
•
•
•
•
amortised cost
fair value through profit or loss - FVTPL
fair value through other comprehensive income - equity instrument (FVOCI - equity)
fair value through other comprehensive income - debt investments (FVOCI - debt)
Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its
business model for managing financial assets.
The classification depends on the entity’s business model for managing the financial assets and the contractual
terms of the cash flows. For assets measured at fair value, gains and losses will either be recorded in profit or
loss or OCI. For investments in equity instruments that are not held for trading, this will depend on whether the
Group has made an irrevocable election at the time of initial recognition to account for the equity investment at
fair value through other comprehensive income (FVOCI).
Recognition and derecognition
Regular way purchases and sales of financial assets are recognised on trade-date, the date on which the
Group commits to purchase or sell the asset. Financial assets are derecognised when the rights to receive cash
flows from the financial assets have expired or have been transferred and the Group has transferred
substantially all the risks and rewards of ownership.
Measurement
At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset
not at fair value through profit or loss (FVTPL), transaction costs that are directly attributable to the acquisition
of the financial asset. Transaction costs of financial assets carried at FVTPL are expensed in profit or loss.
31
Annual Report 2023 Anatara Lifesciences Ltd Page 40
Anatara Lifesciences Ltd
ABN: 41 145 239 872
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
3
Summary of Significant Accounting Policies (continued)
(j)
Financial instruments (continued)
Financial assets (continued)
Debt instruments
Subsequent measurement of debt instruments depends on the Group’s business model for managing the asset
and the cash flow characteristics of the asset. There are three measurement categories into which the Group
classifies its debt instruments:
•
•
•
Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows
represent solely payments of principal and interest are measured at amortised cost. Interest income from
these financial assets is included in finance income using the effective interest rate method. Any gain or
loss arising on derecognition is recognised directly in profit or loss and presented in other gains/(losses)
together with foreign exchange gains and losses. Impairment losses are presented as separate line item in
the consolidated statement of profit or loss.
FVOCI: Assets that are held for collection of contractual cash flows and for selling the financial assets,
where the assets’ cash flows represent solely payments of principal and interest, are measured at FVOCI.
Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or
losses, interest income and foreign exchange gains and losses which are recognised in profit or loss.
When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is
reclassified from equity to profit or loss and recognised in other gains/(losses). Interest income from these
financial assets is included in finance income using the effective interest rate method. Foreign exchange
gains and losses are presented in other gains/(losses) and impairment expenses are presented as
separate line item in the consolidated statement of profit or loss.
FVTPL: Assets that do not meet the criteria for amortised cost or FVOCI are measured at FVTPL. A gain or
loss on a debt investment that is subsequently measured at FVTPL is recognised in profit or loss and
presented net within other gains/(losses) in the year in which it arises.
Impairment
The Group assesses on a forward looking basis the expected credit losses associated with its debt instruments
carried at amortised cost and FVOCI. The impairment methodology applied depends on whether there has
been a significant increase in credit risk.
(k)
Trade and other payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of financial
year which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition. Trade
and other payables are presented as current liabilities unless payment is not due within 12 months after the
reporting year. They are recognised initially at their fair value and subsequently measured at amortised cost
using the effective interest method.
32
Annual Report 2023 Anatara Lifesciences Ltd Page 41
Anatara Lifesciences Ltd
ABN: 41 145 239 872
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
3
Summary of Significant Accounting Policies (continued)
(l)
Employee benefits
Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave
that are expected to be settled wholly within 12 months after the end of the year in which the employees render
the related service are recognised in respect of employees’ services up to the end of the reporting year and are
measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as
current employee benefit obligations in the consolidated statement of financial position.
Other long-term employee benefit obligations
The Group also has liabilities for long service leave and annual leave that are not expected to be settled wholly
within 12 months after the end of the year in which the employees render the related service. These obligations
are therefore measured as the present value of expected future payments to be made in respect of services
provided by employees up to the end of the reporting year using the projected unit credit method. Consideration
is given to expected future wage and salary levels, experience of employee departures and years of service.
Expected future payments are discounted using market yields at the end of the reporting year of high-quality
corporate bonds with terms and currencies that match, as closely as possible, the estimated future cash
outflows. Remeasurements as a result of experience adjustments and changes in actuarial assumptions are
recognised in profit or loss.
The obligations are presented as current liabilities in the consolidated statement of financial position if the entity
does not have an unconditional right to defer settlement for at least twelve months after the reporting year,
regardless of when the actual settlement is expected to occur.
Share-based payments
Share-based compensation benefits are provided to employees via the "Employee Option Plan" ("EOP").
Information relating to these schemes is set out in note 20.
Employee options
The fair value of options granted under the EOP is recognised as a share-based payment expense with a
corresponding increase in equity. The total amount to be expensed is determined by reference to the fair value
of the options granted:
•
•
•
including any market performance conditions (e.g. the Company’s share price);
excluding the impact of any service and non-market performance vesting conditions (e.g. profitability, sales
growth targets and remaining an employee of the Company over a specified time year); and
including the impact of any non-vesting conditions (e.g. the requirement for employees to save or holdings
shares for a specific year of time).
The total expense is recognised over the vesting year, which is the year over which all of the specified vesting
conditions are to be satisfied. At the end of each year, the Group revises its estimates of the number of options
that are expected to vest based on the non-market vesting and service conditions. It recognises the impact of
the revision to original estimates, if any, in profit or loss, with a corresponding adjustment to equity.
33
Annual Report 2023 Anatara Lifesciences Ltd Page 42
Anatara Lifesciences Ltd
ABN: 41 145 239 872
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
3 Summary of Significant Accounting Policies (continued)
(l)
Employee benefits (continued)
Performance rights
Performance pay for selected employees of the Group may be paid in performance rights rather than cash,
subject to board approval. Performance rights to be issued to employees are long-term incentives under the
Executive Option Plan.
(m)
Contributed equity
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares
and share options which vest immediately are recognised as a deduction from equity, net of any tax effects.
(n)
Loss per share
Basic loss per share is calculated by dividing the loss attributable to owners of the Company, excluding any
costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares
outstanding during the year, adjusted for bonus elements in ordinary shares issues during the year.
Diluted loss per share adjusts the basic earnings per share to take into account the after tax effect of interest
and other financing costs associated with dilutive potential ordinary shares, and the weighted average number
of additional ordinary shares that would have been outstanding assuming the conversion of all dilutive potential
ordinary shares.
(o)
Goods and services tax (GST)
Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except
where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). In this case it
is recognised as part of the cost of acquisition of the asset or as part of the expense.
Receivables and payable are stated inclusive of GST.
The net amount of GST recoverable from, or payable to, the ATO is included with other receivables or payables
in the consolidated statement of financial position.
Cash flows in the consolidated statement of cash flows are presented on a gross basis and the GST component
of cash flows arising from investing and financing activities which is recoverable from, or payable to, the
taxation authority is classified as operating cash flows.
34
Annual Report 2023 Anatara Lifesciences Ltd Page 43
Anatara Lifesciences Ltd
ABN: 41 145 239 872
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
4 Critical Accounting Estimates and Judgments
The preparation of financial statements requires the use of accounting estimates which, by definition, will
seldom equal the actual results. Management also needs to exercise judgement in applying the Group’s
accounting policies.
This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of
items which are more likely to be materially adjusted due to estimates and assumptions turning out to be wrong.
Detailed information about each of these estimates and judgements is included in other notes together with
information about the basis of calculation for each affected line item in the financial statements. In addition, this
note also explains where there have been actual adjustments this year as a result of an error and of changes to
previous estimates.
Key estimates - estimation of R&D tax incentive income accrual - note 6(a)(i)
Management has used judgements to assess the Group’s eligible research and development (R&D) activities
and eligible expenditure under the incentive scheme. The determination of the eligible R&D activities and
eligible expenditure would affect the expected amounts recognised for R&D tax incentive. The R&D tax
incentive refund provides an important source of funding and enables the Group to progress the development
and commercialisation of our GaRP product.
Key estimates - share based payments - note 20
Management has used judgements to assess the Group’s share-based payments by determining the choice of
option pricing model. The choice of model would result in option valuation that requires various underlying
assumptions to determine the fair value of options at grant date.
Management used the Black-Scholes option pricing model that takes into account the exercise price, term of
the option, security price at grant date and expected price volatility of the underlying security, the expected
dividend yield, the risk-free interest rate for the term of the security and certain probability assumptions as all
these inputs would affect the share-based payments valuation. The share-based payments are long-term
incentives which allow executives to participate in, and benefit from, the growth of the Group as a result of their
efforts and to assist in motivating and retaining those key employees over the long-term.
Estimates and judgements are continually evaluated. They are based on historical experience and other
factors, including expectations of future events that may have a financial impact on the Group and that are
believed to be reasonable under the circumstances.
5 Operating Segments
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker. The chief operating decision maker, who is responsible for allocating resources and
assessing performance of the operating segments, has been identified as the Executive Chair of the Company.
The Group has identified one reportable segment; that is, the research, development of oral solutions for
gastrointestinal diseases and the commercialisation of the Detach® diarrhoea treatment for piglets. The
segment details are therefore fully reflected in the body of the consolidated financial statements.
35
Annual Report 2023 Anatara Lifesciences Ltd Anatara Lifesciences Ltd
ABN: 41 145 239 872
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
6 Other Income and Expense Items
(a)
Other Income
Other Income
- Research and development tax incentive
- Other grants
- Gain on lease modification
- Other income
Total other income
(i) R&D tax incentive
Page 44
Note
(i)
2023
$
2022
$
1,215,150
24,600
6,096
-
1,245,846
468,515
-
-
18,720
487,235
The Group’s research and development (R&D) activities are eligible under an Australian government tax
incentive for eligible expenditure. Management has assessed these activities and expenditure to determine
which are likely to be eligible under the incentive scheme. Amounts are recognised when it has been
established that the conditions of the tax incentive have been met and that the expected amount can be reliably
measured.
For the year ended 30 June 2023, the Group has recognised a receivable of $923,236 (2022: $479,984, offset
by an overestimation from the prior period of $11,469).
(b)
Breakdown of expenses by nature
General and administrative expenses
Accounting and audit fees
Consulting fees
Depreciation
Employee benefits
Insurance
Investor relations
Legal expenses
Listing and share registry
Occupancy costs
Share-based payment expense
Superannuation
Travel and entertainment
Other expenses
2023
$
2022
$
206,989
216,264
24,763
687,639
64,106
71,287
25,950
69,253
5,012
54,629
74,907
23,115
158,779
184,126
239,642
24,677
1,118,048
62,468
85,124
17,524
66,414
14,106
71,471
106,248
15,176
270,008
20(b)
Total general and administrative expenses
1,682,693
2,275,032
Research and development expenses
Corporate and finance
Project research and development
Total research and development expenses
107,353
1,494,878
1,602,231
19,000
728,181
747,181
36
Annual Report 2023 Anatara Lifesciences Ltd Anatara Lifesciences Ltd
ABN: 41 145 239 872
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
7
Income Tax Expense
(a)
Reconciliation of income tax to accounting profit:
Loss from continuing operations before income tax expense
Tax at the Australian tax rate of 25.0% (2022: 25.0%)
Add:
Tax effect of:
- Accounting expenditure subject to R&D tax incentive
- Share-based payments
- Other items
Less:
Tax effect of:
- R&D tax incentive
- Other items
Income tax attributable to parent entity
Tax losses and other timing differences for which no deferred tax asset
is recognised
Income tax expense
(b)
Tax losses:
Deferred tax assets have not been recognised in respect of the following:
Unused tax losses for which no deferred tax asset has been recognised
Potential tax benefit @ 25.0% (2022: 25.0%)
Page 45
2023
$
2022
$
(2,023,188)
(2,532,293)
(505,797)
(633,073)
530,595
13,658
3,697
269,261
17,868
-
42,153
(345,944)
303,788
-
117,129
2,162
(261,635)
(465,235)
261,635
465,235
-
-
2023
$
2022
$
11,609,599
2,902,400
11,632,951
2,658,238
Deferred tax assets have not been recognised in respect of these items because it is not probable that future
taxable profit will be available against which the Group can utilise the benefits therein. Unused tax losses can
be carried forward indefinitely subject to continuity of ownership and same business test rules.
37
Annual Report 2023 Anatara Lifesciences Ltd Anatara Lifesciences Ltd
ABN: 41 145 239 872
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
8 Cash and Cash Equivalents
Cash at bank and in hand
Total cash and cash equivalents
(a)
Reconciliation of cash
Page 46
2023
$
351,184
2022
$
1,120,204
351,184
1,120,204
Cash and Cash equivalents reported in the consolidated statement of cash flows are reconciled to the
equivalent items in the consolidated statement of financial position as follows:
Cash and cash equivalents
Balance as per consolidated statement of cash flows
(b)
Classification as cash equivalents
2023
$
351,184
2022
$
1,120,204
351,184
1,120,204
Term deposits are presented as cash equivalents if they have a maturity of three months or less from the date
of acquisition and are repayable with 24 hours notice with no loss of interest. See note 3(h) for the Group's
other accounting policies on cash and cash equivalents.
(c)
Risk exposure
The Group's exposure to interest rate risk is discussed in note 15. The maximum exposure to credit risk at the
end of the reporting period is the carrying amount of each class of cash and cash equivalents mentioned above.
9
Trade and Other Receivables
CURRENT
Research and Development Tax Incentive Refund
Other receivables
Total current trade and other receivables
(a)
Fair value of trade and other receivables
2023
$
2022
$
923,236
80,842
1,004,078
479,984
28,541
508,525
The carrying value of trade receivables is considered a reasonable approximation of fair value due to the short-
term nature of the balances. The maximum exposure to credit risk at the reporting date is the fair value of each
class of receivable in the financial statements.
38
Annual Report 2023 Anatara Lifesciences Ltd Anatara Lifesciences Ltd
ABN: 41 145 239 872
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
10 Trade and Other Payables
CURRENT
Accrued expenses
Trade payables
Other payables
Total trade and other payables
Page 47
2023
$
2022
$
357,677
78,831
37,954
474,462
115,133
152,626
34,179
301,938
Trade and other payables are unsecured, non-interest bearing and are normally settled within 30 days. The
carrying value of trade and other payables is considered a reasonable approximation of fair value due to the
short-term nature of the balances.
11 Employee Benefits
CURRENT
Provision for employee benefits - annual leave
Provision for employee benefits - long service leave
Total current employee benefits
NON-CURRENT
Provision for employee benefits - long service leave
Total non-current employee benefits
(a)
Leave obligations
2023
$
2022
$
19,705
-
19,705
22,156
13,378
35,534
665
665
81
81
The leave obligations cover the Group’s liabilities for long service leave and annual leave which are classified
as either other long-term benefits or short-term benefits, as explained in note 3(l).
The current portion of this liability includes all of the accrued annual leave, the unconditional entitlements to
long service leave where employees have completed the required year of service and also for those employees
that are entitled to pro-rata payments in certain circumstances.
The majority of leave provision is presented as current, being $19,705 (2022: $35,534), since the Group does
not have an unconditional right to defer settlement for any of these obligations. However, based on past
experience, the Group does not expect all employees to take the full amount of accrued leave or require
payment within the next 12 months.
39
Annual Report 2023 Anatara Lifesciences Ltd Anatara Lifesciences Ltd
ABN: 41 145 239 872
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
12
Issued Capital
119,923,985 (2022: 71,355,621) Ordinary shares
Share issue costs
Total issued capital
(a)
Movements in ordinary shares
Balance at 1 July 2021
Exercise of performance rights with nil cash consideration (13-08-2021)
Exercise of performance rights with nil cash consideration (25-08-2021)
Transfer from reserves on exercise of performance rights (08-2021)
Exercise of performance rights with nil cash consideration (26-10-2021)
Transfer from reserves on exercise of performance rights (26-10-2021)
Exercise of performance rights with nil cash consideration (09-12-2021)
Transfer from reserves on exercise of performance rights (09-12-2021)
Less: Transaction costs arising on share issues
Balance at 30 June 2022
Issue at $0.035 pursuant to Placement - Tranche 1 (28-10-2022)
Issue at $0.035 pursuant to Entitlement Offer (28-11-2022)
Issue at $0.035 pursuant to Placement - Tranche 2 (16-12-2022)
Exercise of performance rights with nil cash consideration (27-01-2022)
Transfer from reserves on exercise of performance rights (27-01-2023)
Issue at $0.035 pursuant to Shortfall Offer (21-02-2023)
Less: Transaction costs arising on share issues
Page 48
2023
$
2022
$
22,535,542
(1,166,824)
20,833,060
(924,589)
21,368,718
19,908,471
Number of
shares
70,238,523
449,781
331,204
-
297,489
-
38,624
-
-
Total
$
19,755,634
-
-
106,994
-
45,000
-
5,843
(5,000)
71,355,621
19,908,471
10,703,343
14,991,156
14,010,943
68,871
-
8,794,051
-
374,617
524,691
490,383
-
5,000
307,791
(242,235)
Balance at 30 June 2023
119,923,985
21,368,718
(b)
Ordinary shares
Ordinary shares entitle the holder to participate in dividends, and to share in the proceeds of winding up the
Company in proportion to the number of and amounts paid on the shares held. On a show of hands every
holder of ordinary shares present at a meeting in person or by proxy, is entitled to one vote, and upon a poll
each share is entitled to one vote. Ordinary shares have no par value and the company does not have a limited
amount of authorised capital.
(c)
Options and performance rights
Information relating to options and performance rights, including details of those issued, exercised, and lapsed
during the financial year, and the outstanding balance as at the end of the reporting year is set out in note 13.
40
Annual Report 2023 Anatara Lifesciences Ltd Page 49
Anatara Lifesciences Ltd
ABN: 41 145 239 872
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
13 Reserves
(a)
Share-based payments reserve
The consolidated statement of financial position line item "other reserves" comprises the "share-based
payments reserve".
The share-based payment reserve records items recognised as expenses on valuation of share options and
performance rights issued to key management personnel, other employees and eligible contractors.
(b)
Movement in options and performance rights
Balance at 1 July 2021
Options issued during the year
Options forfeited/lapsed during the year
Issue of performance rights (2021-08-13)
Performance rights exercised during the year
Balance at 30 June 2022
Options expired/lapsed during the year
Options forfeited during the year
Issue of options to external consultants
Share-based payment expenses of options
issued in prior years
Issue of performance rights (2022-08-31)
Performance rights exercised during the year
Balance at 30 June 2023
Number of
options
2,963,704
2,160,000
(246,000)
-
-
4,877,704
(1,217,704)
(265,000)
3,500,000
Number of
performance
rights
780,985
-
-
336,113
(1,117,098)
-
-
-
-
-
-
-
-
275,483
(68,871)
Total
$
678,492
71,478
(152,645)
-
(157,837)
439,488
(214,970)
(5,903)
53,550
60,533
20,000
(5,000)
6,895,000
206,612
347,698
Note
(ii)
(i)
(iii)
(i) On 31 August 2022, 275,483 performance rights have been issued to employees, as part of their
performance bonus of $20,000 recognised as expenses in the prior year.
(ii) The issue of 3,500,000 options to external consultants was approved by shareholders at the general
meeting held in December 2022.
(iii) This number of options balance does not include options issued during the year that are not in relation to
share based payments.
41
Annual Report 2023 Anatara Lifesciences Ltd Page 50
Anatara Lifesciences Ltd
ABN: 41 145 239 872
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
13 Reserves (continued)
(b)
Movement in options and performance rights (continued)
Fair value of options granted:
See note 20(b)(ii) for details of fair value measurement of options issued during the year.
The model inputs for options granted to external consultants during the year ended 30 June 2023 included:
2023
Exercise
price
No. of
Options
Grant Date Expiry
$
Share
price at
grant date
$
Expected
volatility
Dividend
yield
Risk free
interest
rate
Fair Value
grant date
per option
$
16
December
2022
Date
11
December
2025
0.0700
3,500,000
0.035
78.0 %
-%
3.14%
0.0153
3,500,000
14 Cash Flow Information
(a)
Reconciliation of (loss) for the year to cashflows from operating activities
Reconciliation of net (loss) to net cash provided by operating activities:
(Loss) for the year
Non-cash flows in (loss):
- depreciation and amortisation
- finance costs
- issue of performance rights
- (gain)/loss on lease modification
- share-based payments
Changes in assets and liabilities:
- (increase)/decrease in trade and other receivables
- (increase)/decrease in other assets
- increase/(decrease) in trade and other payables
- (increase)/decrease in other liabilities
6(b)
20
2023
$
2022
$
(2,023,188)
(2,532,293)
24,763
2,370
20,000
(6,096)
54,629
(495,553)
7,316
173,108
(15,245)
24,677
3,320
-
-
71,471
264,034
15,112
(33,512)
(45,685)
Net cash inflow (outflow) from operations
(2,257,896)
(2,232,876)
(b)
Non-cash investing and financing activities
Non-cash investing and financing activities disclosed in other notes are:
• Options/performance rights issued for no cash consideration - note 20.
42
Annual Report 2023 Anatara Lifesciences Ltd Page 51
Anatara Lifesciences Ltd
ABN: 41 145 239 872
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
13 Reserves
(a)
Share-based payments reserve
The consolidated statement of financial position line item "other reserves" comprises the "share-based
payments reserve".
The share-based payment reserve records items recognised as expenses on valuation of share options and
performance rights issued to key management personnel, other employees and eligible contractors.
(b)
Movement in options and performance rights
Balance at 1 July 2021
Options issued during the year
Options forfeited/lapsed during the year
Issue of performance rights (2021-08-13)
Performance rights exercised during the year
Balance at 30 June 2022
Options expired/lapsed during the year
Options forfeited during the year
Issue of options to external consultants
Share-based payment expenses of options
issued in prior years
Issue of performance rights (2022-08-31)
Performance rights exercised during the year
Balance at 30 June 2023
Number of
options
2,963,704
2,160,000
(246,000)
-
-
4,877,704
(1,217,704)
(265,000)
3,500,000
Number of
performance
rights
780,985
-
-
336,113
(1,117,098)
-
-
-
-
-
-
-
-
275,483
(68,871)
Total
$
678,492
71,478
(152,645)
-
(157,837)
439,488
(214,970)
(5,903)
53,550
60,533
20,000
(5,000)
6,895,000
206,612
347,698
Note
(ii)
(i)
(iii)
(i) On 31 August 2022, 275,483 performance rights have been issued to employees, as part of their
performance bonus of $20,000 recognised as expenses in the prior year.
(ii) The issue of 3,500,000 options to external consultants was approved by shareholders at the general
meeting held in December 2022.
(iii) This number of options balance does not include options issued during the year that are not in relation to
share based payments.
41
Annual Report 2023 Anatara Lifesciences Ltd Page 52
Anatara Lifesciences Ltd
ABN: 41 145 239 872
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
13 Reserves (continued)
(b)
Movement in options and performance rights (continued)
Fair value of options granted:
See note 20(b)(ii) for details of fair value measurement of options issued during the year.
The model inputs for options granted to external consultants during the year ended 30 June 2023 included:
2023
Exercise
price
No. of
Options
Grant Date Expiry
$
Share
price at
grant date
$
Expected
volatility
Dividend
yield
Risk free
interest
rate
Fair Value
grant date
per option
$
16
December
2022
Date
11
December
2025
0.0700
3,500,000
0.035
78.0 %
-%
3.14%
0.0153
3,500,000
14 Cash Flow Information
(a)
Reconciliation of (loss) for the year to cashflows from operating activities
Reconciliation of net (loss) to net cash provided by operating activities:
(Loss) for the year
Non-cash flows in (loss):
- depreciation and amortisation
- finance costs
- issue of performance rights
- (gain)/loss on lease modification
- share-based payments
Changes in assets and liabilities:
- (increase)/decrease in trade and other receivables
- (increase)/decrease in other assets
- increase/(decrease) in trade and other payables
- (increase)/decrease in other liabilities
6(b)
20
2023
$
2022
$
(2,023,188)
(2,532,293)
24,763
2,370
20,000
(6,096)
54,629
(495,553)
7,316
173,108
(15,245)
24,677
3,320
-
-
71,471
264,034
15,112
(33,512)
(45,685)
Net cash inflow (outflow) from operations
(2,257,896)
(2,232,876)
(b)
Non-cash investing and financing activities
Non-cash investing and financing activities disclosed in other notes are:
• Options/performance rights issued for no cash consideration - note 20.
42
Annual Report 2023 Anatara Lifesciences Ltd Page 53
Anatara Lifesciences Ltd
ABN: 41 145 239 872
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
15 Financial Risk Management (continued)
(a)
Market risk (continued)
Sensitivity analysis
The following table illustrates the sensitivity of the net result for the year and equity to a reasonably possible
change in interest rates of +/-3.38% (2022: +/-1.21%), with effect from the beginning of the year. The use of
3.38% was determined based on analysis of the Reserve Bank of Australia cash rate change, on an absolute
value basis, at 30 June 2023 and the previous four balance dates. The average cash rate at these balance
dates was 1.31% (2022: 0.77%)
The average change to the cash rate between balance dates was 257.80% (2022: 157.03%). By multiplying
these two values, the interest rate risk was derived. Loss sensitivity to movements in interest rates is
reasonably consistent between 2023 and 2022 as increases in interest rates have been offset by a reduction in
cash and cash equivalents. The Group's exposure to other classes of financial instruments with cash flow risk is
not material.
The calculations are based on the financial instruments held at each reporting date. All other variables are held
constant.
Impact on loss for the period
Impact on other components of equity
(b)
Credit risk
2023
+/-3.38%
$
12,945
2022
+/-1.21%
$
13,554
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial
loss to the Group.
(i) Risk management
The Group manages credit risk and the losses which could arise from default by ensuring that financial assets
such as cash at bank and deposits at call are held with reputable organisations.
(ii) Impairment of financial assets
While cash and cash equivalents and term deposits are subject to the impairment requirements of AASB 9, the
identified impairment loss was immaterial.
Annual Report 2023 Anatara Lifesciences Ltd Page 54
Anatara Lifesciences Ltd
ABN: 41 145 239 872
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
15 Financial Risk Management (continued)
(c)
Liquidity risk
Liquidity risk arises from the possibility that the Group might encounter difficulty in settling its debts or otherwise
meeting its obligations related to financial liabilities. The Group manages this risk through the following
mechanisms:
•
•
preparing forward looking cash flow analyses in relation to its operating, investing and financing activities;
obtaining funding from a variety of sources;
• maintaining a reputable credit profile;
• managing credit risk related to financial assets;
•
•
investing cash and cash equivalents and deposits at call with major financial institutions; and
comparing the maturity profile of financial liabilities with the realisation profile of financial assets.
(i) Maturities of financial liabilities
Less than
6 months months
6-12
Between Between
2 and 5
1 and 2
years
years
At 30 June 2023
Payables
Lease liabilities
Total
$
474,462
-
474,462
At 30 June 2022
Payables
301,938
$
-
-
-
-
$
-
-
-
-
$
-
-
-
-
Lease liabilities
10,183
10,473
22,320
22,825
Total
312,121
10,473
22,320
22,825
Total
contractual
cash flows
Carrying
amount
(assets)/
liabilities
$
$
Over 5
years
$
-
-
-
-
-
-
474,462
-
474,462
-
474,462
474,462
301,938
301,938
65,801
65,801
367,739
367,739
45
Annual Report 2023 Anatara Lifesciences Ltd Page 55
Anatara Lifesciences Ltd
ABN: 41 145 239 872
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
16 Capital management
(a)
Risk management
The Group's objectives when managing capital are to:
•
safeguard their ability to continue as a going concern, so that they can continue to provide returns for
shareholders and benefits for other stakeholders; and
• maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Group may issue new shares or reduce its capital,
subject to the provisions of the Group’s constitution. The capital structure of the Group consists of equity
attributed to equity holders of the Group, comprising contributed equity, reserves and accumulated losses. By
monitoring undiscounted cash flow forecasts and actual cash flows provided to the board by the Group’s
management, the board monitors the need to raise additional equity from the equity markets.
As at 30 June 2023, the Group held cash and equivalents of $351,184 (2022: $1,120,204). The Group has put
in place measures to reduce all non-critical expenditure.
(b)
Dividends
No dividends were declared or paid to members for the year ended 30 June 2023 (2022: nil). The Group's
franking account balance was nil at 30 June 2023 (2022: nil).
17
Interests in Subsidiaries
The Group's principal subsidiaries at 30 June 2023 are set out below. Unless otherwise stated, they have share
capital consisting solely of ordinary shares that are held directly by the Group, and the proportion of ownership
interests held equals the voting rights held by the Group. The country of incorporation or registration is also
their principal place of business.
Subsidiaries
Sarantis Pty Ltd
Australia
Principal place of business /
Country of Incorporation
Principal place of business /
Country of Incorporation
2023
100
Principal place of business /
Country of Incorporation
2022
100
*The percentage of ownership interest held is equivalent to the percentage voting rights for all subsidiaries.
46
Annual Report 2023 Anatara Lifesciences Ltd Page 56
Anatara Lifesciences Ltd
ABN: 41 145 239 872
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
18 Events Occurring After the Reporting Date
The consolidated financial report was authorised for issue on
August 2023 by the board of directors.
The company reports that $923,236 was received from the Australian Taxation Office subsequent to year end under the
Federal Government’s Research and Development (R&D) tax incentive scheme for FY2023, in line with the Company’s
expectation
On 31 August 2023, 206,612 performance rights with nil exercise price and an expiration date of 31 August
2025 were issued to Mr Simon Erskine as part of his performance bonus for the year ended 30 June 2022. The
value of these performance rights was recognised in the statement of profit or loss in the previous financial
year.
Subsequent to year end, 1,611,176 performance rights have been issued to Mr Simon Erskine, as part of his
performance bonus of $54,780. These performance rights have nil exercise price and expire on 1 August 2026.
Except for the above, no other matters or circumstances have arisen since the end of the financial year which
significantly affected or could significantly affect the operations of the Group, the results of those operations, or
the state of affairs of the Group in future financial years.
19 Related Parties
(a)
The Group's main related parties are as follows:
Interests in subsidiaries are set out in note 17.
Key management personnel - refer to note 19(b).
Other related parties include close family members of key management personnel and entities that are
controlled or significantly influenced by those key management personnel or their close family members.
(b)
Key management personnel compensation
Key management personnel remuneration included within employee expenses for the year is shown below:
Short-term employee benefits
Post-employment benefits
Long-term benefits
Share-based payments
Total key management personnel compensation
(c)
Transactions with other related parties
2023
$
595,253
61,517
584
129,515
129,515
2022
$
713,543
72,249
(21,862)
62,551
62,551
During the 2022 financial year, the Group engaged a related party (Planet Innovation) for consulting services
which amounted to $28,340. These transactions were conducted at arm's length. No transactions with related
parties occurred in 2023.
47
Annual Report 2023 Anatara Lifesciences Ltd Page 57
Anatara Lifesciences Ltd
ABN: 41 145 239 872
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
20 Share-Based Payments
(a)
Executive option plan
The establishment of the ‘executive option plan’ (EOP) was approved by shareholders at the 2020 annual
general meeting. The plan is designed to provide long-term incentives for executives (including directors) to
deliver long-term shareholder returns. Participation in the plan is at the board’s discretion and no individual has
a contractual right to participate in the plan or to receive any guaranteed benefits. Set out below are summaries
of options granted under the plan:
2023
Average exercise
price per share
option
$
0.48
-
0.44
0.23
0.24
Number of
options
No.
4,877,704
-
(1,482,704)
3,395,000
2,520,000
2022
Average exercise
price per share
option
$
0.48
0.22
1.78
0.30
0.36
Number of
options
No.
2,963,704
2,160,000
(246,000)
4,877,704
2,717,704
As at 1 July
Granted during
the year
Forfeited/lapsed
during the year
As at 30 June
Vested and
exercisable at
30 June
The forfeited/lapsed options were fully vested before they forfeited/lapsed.
Share options outstanding at the end of the year have the following expiry date and exercise prices:
Options
Options
Options
Options
Options
Options
Options
Number
Grant Date
Vesting Date
Expiry Date
1,500,000 26 November 2020
20,000 23 August 2021
900,000 16 November 2021
675,000 16 November 2021
100,000 29 November 2021
100,000 29 November 2021
100,000 29 November 2021
26 November 2020
23 August 2022
16 November 2022
16 November 2023
25 November 2022
25 November 2023
25 November 2024
25 November 2023
18 August 2025
14 November 2025
14 November 2025
25 November 2025
25 November 2025
25 November 2025
Exercise
price
0.2500
0.2256
0.2226
0.2226
0.2030
0.2030
0.2030
3,395,000
Weighted average remaining contractual life of options
outstanding at
end of period
2023
1.52
2022
2.75
48
Annual Report 2023 Anatara Lifesciences Ltd Page 58
Anatara Lifesciences Ltd
ABN: 41 145 239 872
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
20 Share-Based Payments (continued)
(a)
Executive option plan (continued)
(i) Vesting conditions
Vesting condition apply to options granted under the executive option plan (EOP). Shares are not be issued
unless the vesting condition is met. The vesting condition generally depends on service periods of the
employees or directors. If the vesting condition is not met on the relevant vesting date, the options lapse and
the option holders are not issued any shares. The vesting condition that apply to the options offered are set out
in the options offer letter and the EOP.
(ii) Fair value of options granted
The value attributed to options issued is an estimate calculated using an appropriate mathematical formula
based on an option pricing model. The choice of models and the resultant option value require assumptions to
be made in relation to the likelihood and timing of the conversion of the options to shares and the value and
volatility of the price of the underlying shares.
Management has assessed the fair value of options determined at grant date, using the Black-Scholes option
pricing model that takes into account the exercise price, term of the option, security price at grant date and
expected price volatility of the underlying security, the expected dividend yield, the risk-free interest rate for the
term of the security and certain probability assumptions.
There were no options granted under EOP during the year ended 30 June 2023.
(b)
Share-based payment arrangements
Total expenses arising from share-based payment transactions recognised during the year are as follows:
Options issued under EOP
Performance pay (i)
Adjustment for previous share-based payments not vested
Total
(i) Performance pay
2023
$
60,533
-
(5,904)
54,629
2022
$
71,471
22,297
-
93768
It was agreed that performance pay for selected employees for the year ended 30 June 2023 and 30 June 2022
would be paid in performance rights rather than cash. Performance rights to be issued to employees are long-
term incentives under the Executive Option Plan (EOP). The performance rights for the 2023 financial year
were granted on 1 August 2023.
49
Annual Report 2023 Anatara Lifesciences Ltd Page 59
Anatara Lifesciences Ltd
ABN: 41 145 239 872
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
21 Auditors' Remuneration
During the year the following fees were paid or payable for services provided by the auditor of the parent entity,
its related practices and non-related audit firms:
(a)
Grant Thornton Audit Pty Ltd
Audit and other assurance services
- auditing or reviewing the financial statements
Taxation services
- tax compliance services
Total auditor's remuneration
22 Earnings Per Share
(a) Basic (loss) per share
Basic (loss) per share
(b) Diluted (loss) per share
Diluted (loss) per share
(c) Reconciliation of (loss) used in calculating basic and diluted loss per share
(Loss) attributable to the ordinary equity holders of the company
used in calculating (loss) per share:
From continuing operations
2023
$
2022
$
65,500
66,500
38,000
41,835
103,500
108,335
2023
Cents
2022
Cents
(2.07)
(3.56)
2023
Cents
2022
Cents
(2.07)
(3.56)
2023
$
2022
$
2,023,188
2,532,293
(d) Weighted average number of ordinary shares outstanding during the year used in calculating basic EPS
Weighted average number of ordinary shares outstanding during the
year used in calculating basic EPS
2023
No.
2022
No.
97,917,397
71,134,813
On the basis of the Group's losses, the outstanding options as at 30 June 2023 are considered to be anti-
dilutive and therefore were excluded from the diluted weighted average number of ordinary shares calculation.
50
Annual Report 2023 Anatara Lifesciences Ltd Page 60
Anatara Lifesciences Ltd
ABN: 41 145 239 872
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
23 Parent Entity
The following information has been extracted from the books and records of the parent, Anatara Lifesciences
Ltd ("the Company") and has been prepared in accordance with Australian Accounting Standards.
The individual financial statements for the parent resemble the consolidated financial statements as the
Company's subsidiary, Sarantis Pty Ltd, is a dormant entity.
(a)
Guarantees
The parent entity has not entered into any guarantees in relation to debts of its subsidiaries in the year ended
30 June 2023 (2022: nil).
(b)
Contingent liabilities
The parent entity did not have any contingent liabilities as at 30 June 2023 or 30 June 2022.
(c)
Contractual commitments for the acquisition of property, plant and equipment
The parent entity did not have any commitments for the acquisition of property, plant or equipment in the year
ended 30 June 2023 or 30 June 2022.
(d)
Determining parent entity financial information
(i) Tax consolidation legislation
Anatara Lifesciences Ltd and its wholly-owned Australian controlled entities have implemented the tax
consolidation legislation. The head entity, Anatara Lifesciences Ltd, and the controlled entities in the tax
consolidated group account for their own current and deferred tax amounts. These tax amounts are measured
as if each entity in the tax consolidated group continues to be a stand-alone taxpayer in its own right. In addition
to its own current and deferred tax amounts, Anatara Lifesciences Ltd also recognises the current tax liabilities
(or assets) and the deferred tax assets arising from unused tax losses and unused tax credits assumed from
controlled entities in the tax consolidated group.
The entities have also entered into a tax funding agreement under which the wholly-owned entities fully
compensate Anatara Lifesciences Ltd for any current tax payable assumed and are compensated by Anatara
Lifesciences Ltd for any current tax receivable and deferred tax assets relating to unused tax losses or unused
tax credits that are transferred to Anatara Lifesciences Ltd under the tax consolidation legislation. The funding
amounts are determined by reference to the amounts recognised in the wholly-owned entities’ financial
statements.
The amounts receivable/payable under the tax funding agreement are due upon receipt of the funding advice
from the head entity, which is issued as soon as practicable after the end of each financial year. The head entity
may also require payment of interim funding amounts to assist with its obligations to pay tax instalments. Assets
or liabilities arising under tax funding agreements with the tax consolidated entities are recognised as current
amounts receivable from or payable to other entities in the group. Any difference between the amounts
assumed and amounts receivable or payable under the tax funding agreement are recognised as a contribution
to (or distribution from) wholly-owned tax consolidated entities.
51
Annual Report 2023 Anatara Lifesciences Ltd Page 61
Anatara Lifesciences Ltd
ABN: 41 145 239 872
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
24 Contingencies
In the opinion of the Directors, the Company did not have any contingencies at 30 June 2023 (30 June 2022:
Nil).
25 Statutory Information
The registered office and principal place of business of the company is:
Anatara Lifesciences Ltd
c/- Perks, Level 8, 81 Flinders Street
Adelaide SA 5000
Australia
52
Annual Report 2023 Anatara Lifesciences Ltd Page 62
Anatara Lifesciences Ltd
ABN: 41 145 239 872
Directors' Declaration
The directors of the Company declare that:
1.
the consolidated financial statements and notes set out on pages 23 - 52 are in accordance with the Corporations Act
2001, including:
a.
b.
comply with Australian Accounting Standards, the Corporations Regulations 2001 and other mandatory
professional reporting requirements; and
giving a true and fair view of the consolidated group's financial position as at 30 June 2023 and of its performance
for the financial year ended on that date; and
2.
in the directors' opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as and
when they become due and payable.
Note 2(a) confirms that the financial statements also comply with International Financial Reporting Standards as issued by
the International Accounting Standards Board.
The directors have been given the declarations by the chief executive officer and chief financial officer required by section
295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Board of Directors.
Director ..................................................................
Dr David Brookes, Executive Chair
Dated this
day of August 2023
23
53
Annual Report 2023 Anatara Lifesciences Ltd Page 63
Grant Thornton Audit Pty Ltd
Grant Thornton House
Level 3
170 Frome Street
Adelaide SA 5000
GPO Box 1270
Adelaide SA 5001
T +61 8 8372 6666
Independent Auditor’s Report
To the Members of Anatara Lifesciences Ltd
Report on the audit of the financial report
Opinion
We have audited the financial report of Anatara Lifesciences Ltd (the Company) and its subsidiaries (the
Group), which comprises the consolidated statement of financial position as at 30 June 2023, 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, and notes to the
consolidated financial statements, including a summary of significant accounting policies, and the Directors’
declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act
2001, including:
a giving a true and fair view of the Group’s financial position as at 30 June 2023 and of its performance for
the year ended on that date; and
b complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section
of our report. We are independent of the Group in accordance with the auditor independence requirements
of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical
Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence
Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled
our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
www.grantthornton.com.au
ACN-130 913 594
Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 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 Limited 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 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards
Legislation.
Annual Report 2023 Anatara Lifesciences Ltd Page 64
Material uncertainty related to going concern
We draw attention to Note 2(c) in the financial statements, which indicates that the Group incurred a net loss of
$2,023,188 and operating cash outflows of $2,257,896 during the year ended 30 June 2023, and as of that date,
the Group held cash and cash equivalents of $351,184. As stated in Note 2(c), these events or conditions, along
with other matters as set forth in Note 2(c), indicate that a material uncertainty exists that may cast doubt on the
Group’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the financial report of the current period. These matters were addressed in the context of our audit of the financial
report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these
matters.
In addition to the matter described in the Material uncertainty related to going concern section, we have
determined the matters described below to be the key audit matters to be communicated in our report.
Key audit matter
How our audit addressed the key audit matter
Recognition of research and development tax
incentive – Notes 3 (d), 6(a)(i), and 9(a)
The Group receives a refundable tax offset of eligible
expenditure under the research and development
(R&D) tax incentive scheme. An R&D plan is filed
with AusIndustry in the following financial year, and,
based on this filing, the Group receives the incentive
in cash.
Management reviews the Group’s total research and
development expenditure to determine the potential
claim under the R&D tax incentive legislation.
The Group recognises R&D tax incentive rebate
income on an accrual basis, meaning that a
receivable is recorded at the balance date based on
the estimated amount that is yet to be received from
the Australian Taxation Office for the period 1 July
2022 to 30 June 2023.
Our procedures included, amongst others:
• Obtaining the R&D incentive calculations that have
been prepared by management and reviewed by
management’s expert, and engaging an internal
R&D Tax Expert to assist in assessing the
reasonableness of the estimate;
• Performing a review to ensure that any relevant
legislation changes have been appropriately applied;
• Comparing the nature of the R&D expenditure
included in the current year estimate to the prior-
year approved claim;
• Comparing the estimates made in previous years to
the amount of cash received after lodgement of the
R&D tax claim;
This area is a key audit matter due to the judgement
and interpretation of the R&D tax legislation required
by management to assess the eligibility of the R&D
expenditure under the scheme.
• Considering the nature of the expenses against the
eligibility criteria of the R&D tax incentive scheme to
assess whether the expenses included in the
estimate are likely to meet the eligibility criteria;
• Assessing the eligible expenditure used to calculate
the estimate to ensure it is in accordance with
expenditure recorded in the general ledger;
• Testing a sample of expenditure items included in
the estimate to supporting documentation to ensure
they are appropriately recognised in the accounting
records and that they are eligible expenditures;
•
Inspecting copies of relevant correspondence with
AusIndustry and the ATO related to the claims; and
• Reviewing the appropriateness of the relevant
disclosures in the financial statements.
Grant Thornton Audit Pty Ltd 2
Annual Report 2023 Anatara Lifesciences Ltd Page 65
Information other than the financial report and auditor’s report thereon
The Directors are responsible for the other information. The other information comprises the information included
in the Group’s annual report for the year ended 30 June 2023, but does not include the financial report and our
auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report or our knowledge
obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors 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 and for 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.
In preparing the financial report, the Directors are responsible for assessing the Group’s ability to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the Directors either intend to liquidate the Group or to cease operations, or have no realistic
alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and
Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar1_2020.pdf.This
description forms part of our auditor’s report.
Report on the remuneration report
Opinion on the remuneration report
We have audited the Remuneration Report included in the Directors’ report for the year ended 30 June
2023.
In our opinion, the Remuneration Report of Anatara Lifesciences Ltd, for the year ended 30 June 2023
complies with section 300A of the Corporations Act 2001.
Grant Thornton Audit Pty Ltd 3
Annual Report 2023 Anatara Lifesciences Ltd Page 66
Responsibilities
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.
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
J L Humphrey
Partner – Audit & Assurance
Adelaide, 23 August 2023
Grant Thornton Audit Pty Ltd 4
Annual Report 2023 Anatara Lifesciences Ltd Page 67
ANATARA LIFESCIENCES LIMITED
FULLY PAID ORDINARY SHARES (Total)
Top Holders (Ungrouped) As Of 10/12/2023
Rank
Name
Composition : FPO
Units
% Units
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
15
17
18
19
20
RTL GROUP INVESTMENTS PTY LTD
12,542,857
10.46
UBS NOMINEES PTY LTD
SCINTILLA STRATEGIC INVESTMENTS LIMITED
PARMA CORPORATION PTY LTD
MYENG PTY LTD
MR BERTRAND LALANNE
HIMSTEDT & CO PTY LTD
CALAMA HOLDINGS PTY LTD
MR MICHAEL ANDREW WHITING + MRS TRACEY ANNE WHITING
SYMINGTON PTY LTD
MR SAMUEL FRANCIS HUNTER
OCTIFIL PTY LTD
MR BRENDAN PHYLAND
CANDOUR ASSET MANAGEMENT PTY LTD
GP SECURITIES PTY LTD
8,494,808
6,357,142
4,667,681
3,580,211
3,300,000
3,142,857
2,663,987
2,500,000
2,100,000
2,080,729
2,000,000
1,894,042
1,548,056
1,500,000
SLADE TECHNOLOGIES PTY LTD
1,500,000
LONGRIDGE PARTNERS PTY LTD
TOUCAN TRADING PTY LTD
DR DAVID LIONEL BROOKES + MRS ELISABETH BROOKES
1,400,000
1,371,429
1,242,858
BNP PARIBAS NOMINEES PTY LTD
1,096,345
7.08
5.30
3.89
2.99
2.75
2.62
2.22
2.08
1.75
1.74
1.67
1.58
1.29
1.25
1.25
1.17
1.14
1.04
0.91
Totals: Top 20 holders of FULLY PAID ORDINARY SHARES (Total)
Total Remaining Holders Balance
64,983,002
54,940,983
54.19
45.81
Selection Criteria: Address: Hidden Holder ID: Hidden Control Account: Included
Page 1 of 1
Annual Report 2023 Anatara Lifesciences Ltd Page 68
ANATARA LIFESCIENCES LIMITED
Range of Units As Of 10/12/2023
FULLY PAID ORDINARY SHARES (Total)
Composition : FPO
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 Over
Rounding
Total
Total holders
43
133
132
291
145
744
Units
15,086
503,367
1,036,660
10,230,340
108,138,532
119,923,985
% Units
0.01
0.42
0.86
8.53
90.17
0.01
100.00
Unmarketable Parcels
Minimum $ 500.00 parcel at $ 0.0300 per unit
16,667
Minimum Parcel Size
Holders
384
Units
2,581,182
Selection Criteria: Hide Unmarketable Parcels: Shown Control Account: Included
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Annual Report 2023 Anatara Lifesciences Ltd