ABN 41 145 239 872
ANATARA LIFESCIENCES LTD
Annual Report
2023 - 2024
Our Vision
TO PROVIDE EVIDENCE-BASED
HEALTH SOLUTIONS TO ADDRESS
UNMET CLINICAL NEEDS.
Anatara Lifesciences (ASX: ANR) specialises in
creating evidence-based, innovative solutions to
address unmet health needs, with a particular focus
on conditions of and relating to the complex
gastrointestinal tract. Our focus is on building a
pipeline of health products through in-house
development and partnerships for licensing.
Our core commitment is to deliver tangible benefits to
patients and create significant value for our
shareholders.
GET TO KNOW US
03
David Brookes
Executive Chair
John Michailidis
Executive Director
Chief Operator Officer
Nicholas Haslam
Non-Executive Director
Simon Erskine
Chief Development Director
Michael West
Chief Scientific Officer
Stephen Denaro
Company Secretary
Get to know us
Backed by a well credentialed board and
management team, and world-leading scientific
collaborators, Anatara is uniquely positioned to
potentially fulfill significant unmet needs in
gastrointestinal tract health and to identify other
beneficial opportunities.
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 2024 Annual Report, which is again dominated by the progress
of the GaRP-IBS Phase II trial. The trial has advanced into Stage 2 following the encouraging Interim Analysis
results from Stage 1 of the trial announced on the 28th of September 2023.
The Phase II trial of GaRP for IBS (Irritable Bowel Syndrome) selects sufferers of this complex disorder in the
moderate to moderately severe categories of the IBS subtypes D (Diarrhoeal predominate) and M (mixed
pattern). We continue to provide regular updates on the progress of Stage 2 of the trial, with the expectation
that the promising results from Stage 1 will be consolidated. Following on from the confidence generated by
the Stage 1 results, shareholders strongly supported a 2:5 Rights issue in November 2023 to raise $1.055M.
This was followed by a $1M placement only to existing shareholders on 29th April that included participation
by directors requiring shareholder approval. A General Meeting was convened on 5th July 2024 to ratify the
placement including the directors’ participation.
The focus on assessing other opportunities and assets to broaden Anatara’s human health portfolio has
continued. I look forward to updating shareholders on both the GaRP-IBS trial progress and these other
opportunities at the AGM scheduled for the 14th of November 2024 in Adelaide. There will be the opportunity
for shareholders and stakeholders to attend in person or virtually, consistent with previous years.
Anatara’s small team are very dedicated to building the Company’s projects and shareholder value. I take
this opportunity to thank the management team, our consultants and fellow Board members for their
expertise, with every confidence that we have in place the skills and resources to create an exciting
company.
On behalf of the Anatara Board and management team, our sincere thanks again to our shareholders for
their suuport. The GaRP product with broad gastrointestinal 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.
Dr. David Brookes
Executive Chair
Yours sincerely
04
04
Content
Review of the Anatara’s main activity in FY2024
06
Headline Data Overview – Stage 1
07
Trial Design – Stages 1 & 2
09
Secondary Endpoint Data – Stage 1
12
Large Unmet Need for an effective IBS Treatment
15
Consolidated Financial Statement
16
Corporate Directory
17
Directors’ report
18
Corporate Governance Statement
43
Auditor's Independence Declaration under Section 307C of the Corporations Act 2001
43
Consolidated Statement of Profit or Loss and Other Comprehensive Income
44
Consolidated Statement of Financial Position
45
Consolidated Statement of Changes in Equity
46
Consolidated Statement of Cash Flows
47
Notes to the Financial Statements
48
Consolidated Entity Disclosure Statement
68
Director’s Declaration
69
Independent Audit Report
70
Top Shareholders as of 9/25/2024
72
Range of Shareholdings
74
FOR THE YEAR ENDED 30 JUNE 2024
Consolidated Financial Statements
05
THE GARP – IRRITABLE BOWEL SYNDROME (IBS) PHASE II TRIAL
06
Review of the Anatara’s main activity in FY2024
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.
7
Headline Data Overview – Stage 1
REPORTED TO ASX 28/09/2023
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 had
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 continuation of the current trial protocol was supported.
Anatara’s Executive Chair, Dr David Brookes commented at that time:
“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. 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 I 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.”
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.
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%I mprovement (reduction) in IBS-SSS Scores, noting that this 20% reduction has been
achieved in Stage 1.
8
Headline Data Overview – Stage 1 (continued)
REPORTED TO ASX 28/09/2023
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). To achieve a 50%+
reduction in one’s 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.
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 recruits 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 was 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 results [1].
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, and
- Less chance of other drug to drug interactions.
[1]https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6414074/
#:~:text=Estimates%20of%20the%20placebo%20response,approximately%2040%259%E2%80%9311.
9
Trial Design – Stages 1 & 2
Recruitment for Stage 1 was finalised in June 2023 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 of the other participants not included
after withdrawing/not complying following the randomisation stage. Stage 1 had three arms
with a placebo compared to 2 doses of GaRP which were ascribed the terms “High Dose”
and “Low Dose”. The “Low Dose” was the predicted dose from pre-clinical studies and the
“High Dose” was double this predicted dose referred to as “Low Dose”.
Stage 1 was to determine safety and an efficacy signal with a satisfactory outcome from
those endpoints to then guide a recommendation of which of the “Low Dose” or “High
Dose” was the optimum dose for Stage 2. Both these doses satisfied the statistical markers
for continuation and the Company chose the “Low Dose” on basis of performance and
commercial considerations.
The trial enrols males and females 18-65 years of age with irritable bowel syndrome (IBS)
from the subtypes of IBS-D (“Diarrhoea” predominant) and IBS-M (“Mixed” being a subtype
that alternates between diarrhoea and constipation ) and with IBS-SSS scores in the range
of 175-350. The dosing regime is twice daily for 8 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
10
Trial Design – Stages 1 & 2
Participants will be randomised into one of two arms in the trial in a 1:1 ratio
and receive either the optimum dose of the GaRP product selected from
Stage 1 or placebo for 8 weeks plus 2-week follow-up.
Stage 2 in the trial design is to confirm the highly encouraging and clinically
meaningful interim results from Stage 1 of the GaRP-IBS clinical trial. The
data from Stage 1 and the 60-100 Stage 2 patients in the randomised,
placebo controlled, double blind trial will form the basis of the analysis. This
will result in 100-140 patients in total. The trial is sufficiently powered to
deliver statistically significant results versus placebo.
The Company announced on 13th of June 2024 that there had been high
levels of interest shown at all 5 sites situated in Melbourne, Sydney and
Brisbane with a total of over 500 Expressions of Interest (EoI) to date.
Following the trial protocol screening processes, consistent with Stage 1 of
the trial, enrolments have already begun with 13 participants currently
randomised. This was in line with Company expectations following a slight
administrative delay at some of the new trial sites.
The target participant number is 60-100 for Stage 2 of the Trial.
GaRP-IBS Clinical Trial Design
As a footnote , post- end FY2024 the Company announced to the ASX on 30
August 2024 an update on the recruitment for the Stage 2 of Anatara’s pivotal
GaRP-IBS (Irritable Bowel Syndrome) trial with more than 30 participants
enrolled. The Company maintained regular updates on recruitment and
overall trial progress.
11
Trial Design – Stages 1 & 2 (continued)
Further encouraging data from the Interim Analysis of Stage 1 of its Gastrointestinal
ReProgramming (GaRP) trial for IBS followed in relation to the secondary endpoints of quality of
life and anxiety/depression scores in the 17th October 2023 ASX announcement.
Quality of Life and anxiety/depression are considerations often associated with the overall
impact of IBS and to report positive data from these secondary endpoints reinforced the
Company’s previously reported positive headline data from Stage 1, announced on 28th
September 2023.
Dr David Brookes commented at that time
“This is further very encouraging data suggesting GaRP is a product with the potential to improve
mood and quality of life for patients with gastrointestinal tract (GIT) disorders by influencing the
complexities of the gut-brain axis through restoration and maintenance of the integrity of the GIT lining
and assisting the homeostasis of the microbiome.
While we anticipated that the quality-of-life scores would and should mirror the previously announced
improvement in the primary endpoint of the IBS-SSS, the highly significant improvement in anxiety
scores on Low Dose is eye-catching while noting and cautioning the small numbers. The P value of
<0.05 is very pleasing for the overall treatment analysis of improvement in HADS and the Stage 2
design of the trial is to confirm/establish statistically significant P values for primary and secondary
endpoints through greater numbers.
This analysis of these GaRP-IBS trial Stage 1 secondary endpoints furthers a belief that this
complementary medicine’s rejuvenating gastrointestinal tract (GIT) effects will provide relief for
sufferers of non-specific GIT symptoms and be an important adjunctive therapy in mainstream
medical indications, such as IBS and IBD (Inflammatory Bowel Disease)”.
Anatara announced supportive Positive Results from analysis of
secondary endpoints from Stage 1 of the Irritable Bowel Syndrome
(IBS) clinical trial on 17th October 2023
12
Secondary Endpoint Data – Stage 1
The HADS reduction was highly significant for the Low Dose cohort across
anxiety and depression (P- value <0.001) versus placebo with a reduction of 6
points. This result is also clinically meaningful.
Hospital Anxiety and Depression Scale (HADS) is a 14-item self-reported
measure that was specifically developed to assess anxiety and depression in
people with medical illnesses. It has two subscales, which evaluate anxiety
and depression.
Scoring: (for Depression and anxiety):
0-7 = Normal
8-10 = Borderline abnormal (borderline case)
11-21 = Abnormal (case)
The analysis of the secondary endpoints of the change from baseline in the
Hospital Anxiety and Depression Score (HADS) and the change in the quality
of life for irritable bowel syndrome sufferers (IBS QoL) showed marked
improvement for patients on the Stage 1 Low Dose.
Secondary Endpoint – Hospital Anxiety & Depression Score (HADS)
Secondary Endpoint – Hospital Anxiety & Depression Score (HADS)
*Statistical analysis of Mean scores accounted for missing data so that the non-missing value did
not contribute to the mean difference change from baseline or the difference between means of
treatment versus placebo. Statistical analysis conducted by an independent third party.
13
Secondary Endpoint Data – Stage 1 (Continued)
Total Hospital Anxiety & Depression Score (HADS)
BASELINE TO WEEK 10/11
Depression and Anxiety Scores Baseline to week 10/11
14
Secondary Endpoint Data – Stage 1 (Continued)
Secondary Endpoint – IBS Quality of Life Score
IBS QUALITY OF LIFE (IBS-QOL):
*Statistical analysis of Mean scores accounted for missing data so that the non-missing value did not contribute to the mean
difference change from baseline or the difference between means of treatment versus placebo. Statistical analysis conducted
by an independent third party.
The IBS-QoL is a 34-item questionnaire that assesses the degree to which IBS interfered with quality
of life for a subject over the past 30 days. Each item is rated on a 1 to 5 Likert scale, with higher values
indicating a lower quality of life. Scores are summed to comprise eight subscales including a total
score with a range of 34 to 170. A decrease of 10 points or more is considered a clinically
meaningful improvement.
· The Secondary Endpoint data for the IBS QoL showed a strong trend of improvement between the
Low Dose and Placebo group from Baseline to:
o week 8/9 of 11.4 (p=0.10)
o week 10/11 of 8.3
· The higher placebo score at week 10/11 can be partly explained by difficulties for patients on
placebo remaining in the trial for the full duration. Patients suffering from difficult to manage
symptoms tend 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.
15
Large Unmet Need for an effective IBS Treatment
Depending on the diagnostic criteria employed, IBS affects around 11% of the population globally.
Around 30% of people who experience the symptoms of IBS will consult physicians for their IBS
symptoms. These people do not have significantly different abdominal symptoms to those who do not
consult, but they do have greater levels of anxiety and lower quality of life. Internationally, there is a
female predominance in the prevalence of IBS. There is 25% less IBS diagnosed in those over 50
years and there is no association with socioeconomic status[2].
The Anatara GaRP-IBS trial recruited patients with scores in the 175-350 range on the IBS-SSS which
highlights that this trial only included patients with moderate to severe IBS symptoms who often
present with higher-than-normal levels of anxiety and depression. The Company notes it is very
impressive, albeit in small numbers, to not only reduce patients’ IBS symptoms but also to improve
comorbidities, such as anxiety.
IBS sufferers are largely dissatisfied with the treatments used, regardless if prescribed by a medical
practitioner or non-prescription/OTC. Less than 20% are satisfied with suggested treatments that are
available on prescription or otherwise. This is hardly surprising as most treatments are directed at
symptom relief and not control of the underlying processes affecting the complexities of the
gastrointestinal tract. The GaRP preliminary results offer the hope of a treatment that relieves and also
controls the ongoing process by restoring the gastrointestinal tract (GIT) lining and homeostasis. This
is a major point of differentiation from all other products on the market for sufferers of GIT disorders
and complaint.
[2]https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3921083/
#:~:text=Depending%20on%20the%20diagnostic%20criteria,physicians%20for%20their%20IBS%20symptoms.
The other point of differentiation is that Anatara is conducting a mainstream, quality IBS trial
( randomised, double blind, placebo controlled) to allow appropriate, responsible evidence-
based claims around GaRP should the trial conclude successfully. This cannot be said for many
of the products sold for gut health and more specifically for IBS control.
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). Furthermore, GaRP is restorative of the
gastrointestinal tract lining in function and as a barrier while benefiting the homeostasis of the
microbiome. This enables potential beneficial effects for the complex gut-brain axis and overall
health.[3]
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.[4]
[3] https://www.grandviewresearch.com/press-release/global-brain-health-supplements-market
[4] https://www.statista.com/outlook/cmo/otc-pharmaceuticals/digestives-intestinal-remedies/worldwide
FOR THE YEAR ENDED 30 JUNE 2024
016
Consolidated Financial Statements
Anatara Lifesciences Ltd
ABN: 41 145 239 872
30 JUNE 2024
Corporate Directory
Directors
Mr David Brookes
Executive Chair
Mr Nicholas Haslam
Non-Executive Director
Mr John Michailidis
Non-Executive Director
Secretary
Mr Stephen Denaro
Secretary 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
Website
www.anataralifesciences.com
Bankers
Commonwealth Bank of Australia
Melbourne VIC 3000
Telephone: +61 (0)2 9378 20001300
Stock Exchange listing
Anatara Lifesciences Ltd shares are listed on the
Australian Securities Exchange (ASX code: ANR)
017
30 JUNE 2024
018
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 2024.
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
Position
Appointed/Resigned
Dr David Brookes
Executive Chair
Mr Nicholas Haslam
Non-Executive Director
Mr John Michailidis
Executive Director
Appointed 2 October 2023
Dr Jane Ryan
Non-Executive Director
Resigned 2 October 2023
Company secretary
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.
There were no significant changes in the nature of the Group's principal activities during the financial year.
Directors' Report
Directors' Report
Review of operations and financial review
Review of operations
i. Human and animal health projects
19
30 June 2024
Anatara Lifesciences (ASX: ANR or “the Company”), a developer of evidence-based solutions for
gastrointestinal diseases in humans and animals, continued to progress the Gastrointestinal
ReProgramming (GaRP) trial for Irritable Bowel Syndrome (IBS) as a principle activity in human health
towards commercialising the GaRP product. Stage 1 of the Phase II study was completed successfully
meeting endpoints and the results announced to the market are detailed below (within this report).
The Company considers the results extremely encouraging and consistent with the understanding of
the project and product. Anatara’s GaRP 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 is made of GRAS (Generally Regarded As Safe) components and is
designed to assist restoration and maintenance of the GIT lining and the homeostasis of the
microbiome.
The Company announced on 28th September 2023 that the interim futility statistical analysis of Stage
1 of Phase II GaRP- IBS trial had been reviewed by the DSMB (Data Safety Monitoring Board) on 27
September 2023.The conclusion given was that Stage 1 had 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 continuation of the current trial protocol was
supported.
As well there was a clinically meaningful reduction in trial participants' IBS-SSS Scores which is the
targeted primary endpoint.
The Company announced in October 2023 a positive analysis of the secondary endpoints of Quality of
Life (QoL) and the Hospital Anxiety and depression Score (HADS). The improvement of the QoL
scores was anticipated to reflect the trend of improvement in the primary endpoint of IBS-SSS.
Analysis of improvement in HADS revealed highly significant improvement in anxiety and depression
scores on Low Dose (p <0.05) for the overall treatment. The Company considered this a remarkable
result while cautioning on the low numbers involved at this stage of the full trial.
Stage 2 of the trial design is to confirm/establish statistical significance for primary and secondary
endpoints through greater numbers. Anatara is currently conducting Stage 2 of the Phase II GaRP-IBS
trial which commenced recruiting in late in Q3FY24 and had 5 sites established across 3 capital cities
in Q4FY24.The company announced on the 13th of June 2024 that the high number of expressions of
interest had seen significant enrolment in the trial (13 randomised participants ) with further potential
participants in screening. The Company continued to monitor and manage the momentum of trial
participation and interest through the remaining period.
Following the GaRP interim trial results, Anatara continues to engage with global pharma companies
interested in expanding their portfolio of complementary medicines. The ongoing trial has garnered
interest from global leaders in the gastroenterology 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.
Directors' Report
20
30 June 2024
The product continues to remain stable after extensive and regular testing, offering long
shelf life.Testing of the GaRP product continues to demonstrate excellent long -term stability
supporting a commercially reasonable shelf-life with product stability in excess of 24
months under the tested conditions. Samples were tested to ensure potency was
maintained over the shelf-life and release of active ingredients in the targeted segments of
the ileum and colon was maintained.
The Company continued to work towards solidifying the regulatory framework in key
jurisdictions (EU, USA, AU) in order to progress the development of the product towards
commercialisation. In addition, manufacturing scale-up and packaging work has been
initiated in order to be best placed to commercialise as quickly as regulatory authorities will
allow. The Company is securing a supply chain of materials for commercial readiness of the
GaRP product as well as alternative manufacturing partners for commercial scale-up.
The Company continues to progress the work necessary to apply for the GaRP product to
be Listed on the Australian Register of Therapeutic Goods with the TGA.
The Company has continued to expand and support ongoing patent applications under a
broad family of patents in key jurisdictions including the EU and APAC countries, including
Japan, korea,Hong Kong and Australia.
In addition, the Company’s website was upgraded along with the commencement of new
company and product branding, in line with Anatara’s commercialisation plans.
Review of operations and financial review (continued)
Review of operations (continued)
ii. Manufacturing & Regulatory considerations
Directors' Report
21
30 June 2024
The Company announced on 2nd October that Dr Jane Ryan has retired as Non-Executive
Director effective immediately. Mr John Michailidis was simultaneously appointed as an
Executive Director while remaining in the role of COO (Chief Operating Officer).
Dr. Micheal West was appointed CSO (Chief Scientific Officer) in March 2024 having previously
been both CSO and COO at Anatara and having maintained a consultancy to the Company.
Review of operations and financial review (continued)
Review of operations (continued)
iii. Board & Management changes
The Company’s cash at the end of the year was $0.982 million (30 June 2023: $0.351 million).
Net cash outflow from operating activities during the year was $1.247 million, compared to a
$2.258 million cash outflow from operating activities in the year ended 30 June 2023.
As announced on the 3rd of November 2023, the Company launched a 2 for 5 pro-rata non-
renounceable Entitlement Offer to raise $1.055 million and subsequently announced on the
7th & 18th December 2023 the finalisation of the offer raising the full $1.055 million before
capital raising costs.
A further announcement on the 1st May accompanied a placement of 25 million shares to
raise $1.0 million before capital raising costs.
In Q1FY24, the application for the 2023 Research & Development Tax Rebate resulted in a
refund of $0.923 million in August. All expenditure was as anticipated as Stage 1 of the GaRP
trial was finalised and the Interim Analysis conducted.
iv. Summary of FY2024 cashflows
Directors' Report
22
30 June 2024
Financial Position
The Group’s cash balance as at 30 June 2024 was $982,107 (up from $351,184 as at 30 June
2023).
The Group's decreased expenditure contributed to a reduction in the loss for the year to
$1,451,242 (down from $2,023,188 in 2023).
During the year, a total of 47,969,742 shares were issued pursuant to the entitlement offer
announced on 8 December 2023 and a further 23,250,000 shares were issued in May 2024
pursuant to a share placement offer announced on 1 May 2024, raising a further $930,000
before costs.
There were no other significant changes in the Group's state of affairs during the year.
Other items
Significant changes in state of affairs
No dividends were declared or paid to members for the year ended 30 June 2024. The
directors do not recommend that a dividend be paid in respect of the financial year.
Dividends paid or recommended
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.
Likely future developments and results
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.
Environment Regulation
A General Meeting was held on the 5th July 2024 in Adelaide to ratify the May placement and
approve Director participation and Options to Directors and Advisors.
Except for the above, 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.
Events after the reporting date
Directors' Report
Information on directors
23
30 June 2024
Director Information
Dr David Brookes Executive Chair
Experience: 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.
Island Pharmaceuticals Limited (ASX:ILA) since October 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
Directors' Report
Information on directors (continued)
24
30 June 2024
Director Information (continued)
Mr Nicholas Haslam Non-Executive Director
Experience: 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
None
Special Responsibilities
Chair of the audit and risk management committee
Directorships held in other listed entities during the three years prior to the current year:
None
Directors' Report
25
30 June 2024
Dr Jane Ryan Non-Executive Director, resigned 2 October 2023
Experience: Jane has over 30 years of international experience in the pharmaceutical and biotechnology
industries where she has held executive roles in management of research and development programs as
well as business development and alliance management. Jane has worked in Australia, the United States
and the United Kingdom with companies including Peptech, Roche, Cambridge Antibody Technology and
Biota Holdings. Throughout her career, she has led many successful fundraising campaigns and licensing
initiatives including the winning of a $230 million US Government contract.
Jane was Chair of the Advisory Board at the ithree Institute at the University of Technology Sydney (UTS)
which studies how microbes grow, live, adapt and survive Jane has been a Board Member of the
government and not for profit organisations and is currently Non-Executive Director of Bionomics Limited
(NASDAQ:BNOX).
Other current public directorships
Bionomics Ltd (NASDAQ:BNOX), since 1 October 2020
IDT Australia Limited (ASX:IDT), since 28 January 2022
Special Responsibilities
Member of the audit and risk management committee
Chair of the remuneration and nominations committee
Directorships held in other listed entities during the three years prior to the current year:
None
Information on directors (continued)
Director Information (continued)
Directors' Report
26
30 June 2024
Mr John Michailidis Executive Director, appointed 2 October 2023
Experience: John is an accomplished CEO with over 30 years’ experience in the healthcare,
pharmaceutical and biotechnology industries both in Australia and internationally. He has a proven track
record in business transformation, entrepreneurship, translation and commercialisation of science
organisations; government engagement and influence; effectiveness in research translation; business
development and organisational responsibility.
Other current public directorships
None
Special Responsibilities
Chief Operating Officer
Directorships held in other listed entities during the three years prior to the current year:
None
Information on directors (continued)
Director Information (continued)
Directors' Report
27
30 June 2024
Directors’ Meeting
Audit Committee
Remuneration
Committee
Number
eligible to
attend
Number
attended
Number
eligible to
attend
Number
attended
Number
eligible to
attend
Number
attended
Dr David Brookes
12
12
2
2
1
1
Dr Jane Ryan
4
4
1
1
1
1
Mr Nicholas Haslam
12
12
2
2
1
1
Mr John Michailidis
8
8
1
1
-
-
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, 15 meetings of directors (including committees of directors) were
held. Attendances by each director during the year were as follows:
Directors' Report
28
30 June 2024
(a) Insurance of officers
During the financial year, the Group 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 wilful 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.
Director Information (continued)
Indemnification and insurance of officers and auditors
(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.
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.
Proceedings on behalf of company
Directors' Report
29
30 June 2024
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
23-08-2021
18-08-2025
0.2256
20,000
16-11-2021
14-11-2025
0.2226
1,350,000
29-11-2021
25-11-2025
0.2030
300,000
28-11-2022
11-12-2025
0.0700
7,495,595
19-12-2022
11-12-2025
0.0700
15,857,163
21-02-2023
11-12-2025
0.0700
4,397,026
07-05-2024
06-05-2027
0.1000
2,000,000
Total
31,419,784
Date performance rights granted
Expiry date
Number under performance rights
31-08-2022
31-08-2025
206,612
01-08-2023
01-08-2026
1,611,176
Total
1,817,788
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 2024 from the exercise of issued options.
No ordinary shares of the Company were issued during the year ended 30 June 2024 from the exercise of performance
rights.
Directors' Report
Non-audit Services
30
30 June 2024
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 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 2024:
Ongoing corporate initiatives
2024
$
2023
$
Tax compliance services
-
38,000
Total remuneration for taxation services
-
38,000
Total remuneration for non-audit services
-
38,000
The auditor's independence declaration in accordance with section 307C of the Corporations Act
2001 for the year ended 30 June 2024 has been received and can be found on page 21 of the
consolidated financial report.
Auditor's Independence Declaration
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.
Rounding of Amounts
Remuneration report (audited)
31
The directors present the Company's 2024 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
Dr Jane Ryan, Non-Executive Director - Resigned 2 October 2023
Mr Nicholas Haslam, Non-Executive Director
Mr Simon Erskine, Chief Development Officer
Mr John Michailidis, Executive Director / Chief Operating Officer
Directors' Report
30 June 2024
(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.
32
Remuneration report (audited) (continued)
Element
Purpose
Performance Metrics
Potential Value
Fixed remuneration
(FR)
Provide competitive
market remuneration
Nil
Positioned at the market
rate
Short-term incentives
(STI)
Reward for in-year
performance and retention
KPI achievement,
determined by
remuneration and
nominations committee
CDO: 30% of FR
Long-term incentives
(LTI)
Alignment to long-term
shareholder value
KPI achievement,
determined by
remuneration and
nominations committee
CDO: 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.
Directors' Report
30 June 2024
(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 incentives 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.
33
The Group’s CDO is entitled to short-term incentives in the form of cash bonus up to 30% of fixed
remuneration 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.
Remuneration report (audited) (continued)
Directors' Report
30 June 2024
(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.
34
Remuneration report (audited) (continued)
Directors' Report
30 June 2024
2024
$
2023
2022
2021
2020
$
Loss for the year attributable to
owners ($)
1,451,242
2,023,188
2,532,293
1,995,874
3,364,644
Basic loss per share (cents)
0.97
2.07
3.56
3.18
6.77
Share price at year-end ($)
0.04
0.03
0.06
0.16
0.13
The Group’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.
(e) Remuneration expenses for the year ended 30 June 2024
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.
35
Remuneration report (audited) (continued)
Directors' Report
30 June 2024
Notes:
(1) Dr Jane Ryan resigned on 2 October 2023.
(2) Mr John Michailidis was appointed as Executive Director on 2 October 2023.
(3) The options expense has been recognised in respect of options issued in previous years.
Short Term
Post
Employment
Long Term
Share Based Payments
Superannuation
Long service leave
Options
Performance
rights
Total
2024
$
$
$
$
$
Non-executive directors
Dr Jane Ryan (1)
15,000
1,650
-
-
-
16,650
Mr Nicolas Haslam
60,000
6,600
-
-
-
66,600
Executive directors
Dr David Brookes
150,000
16,500
-
6,411
-
172,911
Mr John Michailidis (2)
154,113
16,505
167
-
-
170,785
Other KMP
Mr Simon Erskine
207,311
22,000
1,491
3,818
54,780
289,400
Total KMP compensation
586,424
63,255
1,658
10,229
54,780
716,346
(e) Remuneration expenses for the year ended 30 June 2024 (continued)
36
Remuneration report (audited) (continued)
Directors' Report
30 June 2024
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 were 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.
Short Term
Benefits
Post Employment
Benefits
Long Term
Benefits
Share Based Payments
Superannuation
Long service leave
Options
Performance
rights
Total
2023
$
$
$
$
$
Non-executive directors
Ms Sue MacLeman (1)
27,000
2,835
6,412
-
36,247
Dr Jane Ryan
61,154
6,421
-
14,830
-
82,405
Mr Nicolas Haslam (2)
34,154
3,586
-
-
-
37,740
Executive directors
Dr David Brookes
152,223
15,983
-
29,661
-
197,867
Other KMP
Mr Simon Erskine (3)
213,222
21,404
584
8,832
69,780
313,822
Mr John Michailidis
107,500
11,288
-
-
-
118,788
Total KMP compensation
595,253
61,517
584
59,735
69,780
786,869
(f) Contractual arrangements with executive KMPs
37
Remuneration report (audited) (continued)
Directors' Report
30 June 2024
Name:
Dr David Brookes
Position:
Executive Chair
Contract duration:
Unspecified
Notice period:
Unspecified
Fixed remuneration:
$150,000 per annum, plus 11%
Name:
Mr Simon Erskine
Position:
Chief Development Officer
Contract duration:
Unspecified
Notice period:
3 months by either party
Fixed remuneration:
$220,000 per annum, including 11%
Name:
Mr John Michailidis
Position:
Executive Director / Chief Operating
Contract duration:
Unspecified
Notice period:
Unspecified
Fixed remuneration:
$8,000 per month, adjusted based on
time commitment, plus 11%
superannuation
(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
$150,000
Other non-executive directors
$60,000
38
Remuneration report (audited) (continued)
Directors' Report
30 June 2024
Notes:
(1) Ms Sue MacLeman resigned on 7 December 2022.
(2) Dr Jane Ryan resigned on 2 October 2023.
(3) Mr Nicholas Haslam was appointed on 7 December 2022.
(4) Mr John Michailidis was previously the Chief Operating Officer and was appointed as Executive Director on 2 October 2023.
Fixed remuneration
At risk - STI
At risk - LTI
2024
2023
2024
2023
2024
2023
2023
%
%
%
%
%
%
Non-executive directors
Ms Sue MacLeman (1)
-
82
-
-
-
18
Dr Jane Ryan (2)
84
82
-
-
16
18
Mr Nicolas Haslam (3)
100
-
-
-
-
-
Executive directors
Dr David Brookes
96
85
-
-
4
15
Mr John Michailidis (4)
100
100
-
-
-
-
Other KMP
Mr Simon Erskine (3)
80
75
-
-
20
25
(h) Additional statutory information
(i) Relative proportions of fixed vs variable remuneration expense
The following table shows the relative proportions of remuneration that are linked to performance and those that are fixed, based
on the amounts disclosed as statutory remuneration expense in (e) above.
39
Remuneration report (audited) (continued)
Directors' Report
30 June 2024
(h) Additional statutory information (continued)
(ii) Terms and conditions of the share-based payment arrangements
Options
The terms and conditions of each grant of options affecting remuneration in the current or a future reporting year are as follows:
Grant Date
Vesting and exercised date
d
Expiry date
Exercise price ($)
Value per option at grant date ($)
Vested (%)
16-11-2021
16-11-2022
14-11-2025
0.2226
0.0748
100%
16-11-2021
16-11-2023
14-11-2025
0.2226
0.0748
100%
29-11-2021
25-11-2022
25-11-2025
0.2030
0.0708
100%
29-11-2021
25-11-2023
25-11-2025
0.2030
0.0708
100%
29-11-2021
25-11-2024
25-11-2025
0.2030
0.0708
86%
The vesting criteria for the options to become exercisable is that the option holder remains an employee of the company
during the vesting period.
Performance rights
The terms and conditions of each grant of performance rights affecting remuneration in the current or a future reporting
year are as follows:
Grant Date
Vesting and exercised date
Expiry date
Exercise price ($)
Value per performance right at grant date ($)
Vested (%)
01-08-2023
01-08-2023
01-08-2026
-
0.0340
100%
40
Remuneration report (audited) (continued)
Directors' Report
30 June 2024
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) Dr Jane Ryan resigned on 2 October 2023.
(5) Mr John Michailidis was previously the Chief Operating Officer and was appointed as Executive Director on 2 October 2023.
(h) Additional statutory information
(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 2024
No.
No.
No.
No.
No.
Shares
Dr David Brookes
2,164,286
-
-
2,365,716
4,530,002
Dr Jane Ryan (4)
325,936
-
-
-
325,936
Mr Nicholas Haslam
-
-
-
-
-
Mr Simon Erskine
-
-
-
-
-
Mr John Michailidis (5)
499,999
-
-
450,000
949,999
2,990,221
-
-
2,815,716
5,805,937
41
Remuneration report (audited) (continued)
Directors' Report
30 June 2024
Notes:
(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 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) Dr Jane Ryan resigned on 2 October 2023.
(5) Mr John Michailidis was previously the Chief Operating Officer and was appointed as Executive Director on 2 October 2023.
(h) Additional statutory information (continued)
(iii) Reconciliation of ordinary shares, performance rights and options held by KMP Share holdings (continued)
Option Holdings
Balance at
beginning of
year (1)
Granted as
remuneration
Exercised
Other changes (2)
Balance at the
end of year (3)
Vested
exercisable
30 June 2024
No.
No.
No.
No.
No.
No.
Shares
Dr David Brookes
1,832,143
-
-
-
1,832,143
1,832,143
Dr Jane Ryan (4)
521,432
-
-
-
521,432
296,432
Mr Simon Erskine
300,000
-
-
-
300,000
200,000
Mr John Michailidis (5)
250,000
-
-
-
250,000
250,000
2,903,575
-
-
-
2,903,575
2,578,575
42
Remuneration report (audited) (continued)
Directors' Report
30 June 2024
(h) Additional statutory information (continued)
Performance Rights
Balance at
beginning of year
Granted as
remuneration
Exercised
Other
changes
Balance at the
end of year
30 June 2024
No.
No.
No.
No.
No.
Performance Rights
Mr Simon Erskine (1)
206,612
1,611,176
-
-
1,817,788
206,612
1,611,176
-
-
1,817,788
Notes:
(1) On 1 August 2023, 1,611,176 performance rights with nil exercise price and an expiration date
of 1 August 2026 were issued to Mr Simon Erskine as part of his performance bonus for the year
ended 30 June 2023. The value of these performance rights was recognised in the statement of
profit or loss in the previous financial year.
(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 97 percent of favourable votes on its remuneration report for the
2023 financial year.
The Company did not receive any specific feedback at the 2023 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
Adelaide
Dated this 22 day of August 2024
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 2024 corporate governance statement is dated as at 30 June 2022 and
reflects the corporate governance practices in place throughout the 2024
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/.
43
Corporate Governance Statement
30 June 2024
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
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.
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 2024, 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, 22 August 2024
44
Consolidated Statement of Profit or Loss and
Other Comprehensive Income
2024
$
2023
$
Note
Other income
6(a)
644,026
1,245,846
General and administrative expenses
6(b)
(1,354,243)
(1,682,693)
Research expenses
6(b)
(748,910)
(1,602,231)
Operating loss
(1,459,127)
(2,039,078)
Finance income
7,885
18,260
Finance expenses
-
(2,370)
Finance income - net
7,885
15,890
Loss before income tax
(1,451,242)
(2,023,188)
Income tax expense
7
-
-
Loss for the year
(1,451,242)
(2,023,188)
Other comprehensive income
Other comprehensive income for the year, net of tax
-
-
Total comprehensive loss for the year
(1,451,242)
(2,023,188)
Total comprehensive loss attributable to: Owners of
Anatara Lifesciences Ltd
(1,451,242)
(2,023,188)
Basic earnings per share (cents)
22
(0.97)
(2.07)
Diluted earnings per share (cents)
22
(0.97)
(2.07)
For the Year Ended 30 June 2024
The accompanying notes form part of these financial statements.
45
Consolidated Statement of Financial Position
2024
2023
Note
$
$
ASSETS
CURRENT ASSETS
Cash and cash equivalents
8
982,107
351,184
Trade and other receivables
9
671,092
1,004,078
Other financial assets
-
50,000
Other assets
17,429
10,853
TOTAL CURRENT ASSETS
1,670,628
1,416,115
NON-CURRENT ASSETS
Property, plant and equipment
794
3,258
TOTAL NON-CURRENT ASSETS
794
3,258
TOTAL ASSETS
1,671,422
1,419,373
LIABILITIES
CURRENT LIABILITIES
Trade and other payables
10
269,691
474,462
Employee benefits
11
34,472
19,705
TOTAL CURRENT LIABILITIES
304,163
494,167
NON-CURRENT LIABILITIES
Employee benefits
11
2,686
665
TOTAL NON-CURRENT LIABILITIES
2,686
665
TOTAL LIABILITIES
306,849
494,832
NET ASSETS
1,364,573
924,541
EQUITY
Issued capital
12
23,176,613
21,368,718
Reserves
13
278,030
347,698
Accumulated losses
(22,090,070)
(20,791,875)
TOTAL EQUITY
1,364,573
924,541
For the Year Ended 30 June 2024
The accompanying notes form part of these financial statements.
46
Consolidated Statement of Changes in Equity
For the Year Ended 30 June 2024
Issued
Capital
Reserves
Accumulated
losses
Total
Note
$
$
$
$
Balance at 1 July 2023
21,368,718
347,698
(20,791,875)
924,541
Loss for the year
-
-
(1,451,242)
(1,451,242)
Total comprehensive loss for the
year
-
-
(1,451,242)
(1,451,242)
Transactions with owners in
their capacity as owners
Issue of shares
12
1,985,334
-
-
1,985,334
Less: capital raising costs
12
177,439)
32,000
-
(145,439)
Share based payment expense -
options
20(b)
-
(3,401)
-
(3,401)
Options lapsed
13
-
(153,047)
153,047
-
Performance rights issued
20
-
54,780
-
54,780
Total transactions with owners
in their capacity as owners
1,807,895
(69,668)
153,047
1,891,274
Balance at 30 June 2024
23,176,613
278,030
(22,090,070)
1,364,573
2024
Issued
Capital
Reserves
Accumulated
losses
Total
Note
$
$
$
$
Balance at 1 July 2022
19,908,471
439,488
(18,983,656)
1,364,303
Loss for the year
-
-
(2,023,188)
(2,023,188)
Total comprehensive loss for the
year
-
-
(2,023,188)
(2,023,188)
Transactions with owners in
their capacity as owners
Issue of shares
12
1,697,482
-
-
1,697,482
Less: capital raising costs
12
(242,235)
53,550
-
(188,685)
Share based payment expense -
options
20(b)
-
54,629
-
54,629
Options lapsed
13
-
(214,969)
214,969
-
Performance rights issued
20
-
20,000
-
20,000
Performance rights exercised
20
5,000
(5000)
-
-
Total transactions with owners
in their capacity as owners
1,460,247
(91,790)
214,969
1,583,426
Balance at 30 June 2023
21,368,718
347,698
(20,791,875)
924,541
The accompanying notes form part of these financial statements.
47
Consolidated Statement of Cash Flows
2024
2023
Note
$
$
CASH FLOWS FROM OPERATING ACTIVITIES:
CASH FLOWS FROM OPERATING ACTIVITIES:
Payments to suppliers and employees (inclusive of GST)
(2,195,763)
(3,071,976)
Interest received
7,208
17,582
Government grants and research & development tax incentives
923,236
771,898
Other income
17,923
24,600
Net cash (used in) operating activities
14
(1,247,396)
(2,257,896)
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments for property, plant and equipment
-
(1,726)
Proceeds from term deposits
50,000
-
Net cash provided by/(used in) investing activities
50,000
(1,726)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issue of shares
1,985,334
1,697,482
Share issue transaction costs
(157,015)
(188,685)
Lease payments
-
(18,195)
Net cash provided by financing activities
1,828,319
1,490,602
Net increase / (decrease) in cash and cash equivalents held
630,923
(769,020)
Cash and cash equivalents at beginning of year
351,184
1,120,204
Cash and cash equivalents at end of financial year
8
982,107
351,184
For the Year Ended 30 June 2024
The accompanying notes form part of these financial statements.
(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
$1,451,242 (2023: $2,023,188) and had operating cash outflows of $1,247,396 (2023: $2,257,896) for
the year ended 30 June 2024. As at 30 June 2024, the Group held cash and cash equivalents of
$982,107 (2023: $351,184). 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 Group 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.
48
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
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 2024.
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) Summary of Material Accounting Policy Information
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.
49
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
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 Material Accounting Policy Information
Material accounting policy information adopted in the preparation of these financial statements
is presented below and has been consistently applied unless stated otherwise.
(a) Basis for consolidation
A list of controlled entities is contained in Note 17 to the financial statements.
Subsidiaries
Subsidiaries are all 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) 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).
50
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
3. Summary of Material Accounting Policy Information (continued)
(c) 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.
Material accounting policy information adopted in the preparation of these financial statements is presented below and
has been consistently applied unless stated otherwise.
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.
(d) 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.
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.
(e) 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.
(f) 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.
(g) 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.
(h) 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).
51
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
3. Summary of Material Accounting Policy Information (continued)
(h) Financial instruments (continued)
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.
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.
52
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
3. Summary of Material Accounting Policy Information (continued)
(i) 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.
(j) Employee benefits
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.
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.
(k) 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.
(l) 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.
(m) 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.
53
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
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 that 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
and performance rights at grant date.
Management used the Black-Scholes option pricing model that takes into account the
exercise price, term of the option or performance right, 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.
54
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
6 Other Income and Expense Items
(a) Other Income
2024
2023
Note
$
$
Other Income
- Research &
(i)
626,103
1,215,150
Other grants
16,164
24,600
Other income
1,759
-
Gain on lease i
-
6,096
Total other income
644,026
1,245,846
(i) R&D tax incentive
The Group’s Research & 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 2024, the Group has recognised a receivable of $626,103 (2023
$923,236).
(b) Breakdown of expenses by nature
2024
2023
$
$
General and administrative
Accounting and audit fees
184,891
206,989
Consulting fees
103,945
216,264
Depreciation
2,463
24,763
Employee benefits
695,628
687,639
Insurance
57,723
64,106
Investor relations
103,525
71,287
Legal expenses
9,899
25,950
Listing and share registry
53,633
69,253
Occupancy costs
23
5,012
Share-based payment expense
20(b)
28,599
4,629
Superannuation
65,882
74,907
Travel and entertainment
20,705
23,115
Other expenses
27,327
158,779
Total general and administrative
1,354,243
1,682,693
Research expenses
Corporate and finance
-
107,353
Project research and development
748,910
1,494,878
Total research expenses
748,910
1,602,231
55
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
7 Income Tax Expense
(a) Reconciliation of income tax to accounting profit:
(b) Tax losses:
Deferred tax assets have not been recognised in respect of the following:
2024
2023
$
$
Loss from continuing operations before income tax
expense
(1,451,242)
(2,023,188)
Tax at the Australian tax rate of 25.0% (2023: 25.0%)
(362,811)
(505,797)
Add:
Tax effect of:
- Accounting expenditure subject to R&D tax incentive
359,830
530,595
- Share-based payments
7,150
13,658
- Other items
42,299
3,697
46,468
42,153
Less
Tax effect of:
- R&D tax incentive
156,526
303,788
Income tax attributable to parent entity
(110,058)
(261,635)
Tax losses and other timing differences for which no
deferred tax asset
110,058
261,635
Income tax expense
-
-
2024
2023
$
$
Unused tax losses for which no
deferred tax asset has been
recognised
12,625,530
11,609,599
Potential tax benefit @ 25.0% (2023:
25.0%)
3,156,383
2,902,400
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 business continuity test.
56
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
8 Cash and Cash Equivalents
(b) Classification as cash equivalents
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(f) 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
2024
2023
$
$
Cash at bank and in hand
932,016
351,184
Term deposit
50,091
-
Total cash and cash equivalents
982,107
351,184
(a) Reconciliation of cash
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:
2024
2023
$
$
Cash and cash equivalents
932,016
351,184
Balance as per consolidated statement of cash flows
932,016
351,184
2024
2023
$
$
CURRENT
626,103
923,236
Research and Development Tax Incentive receivable
44,989
80,842
Other receivables
Total current trade and other receivables
671,092
1,004,078
(a) Fair value of trade and other receivables
The carrying value of trade receivables is considered a reasonable approximation of fair
value due to the shortterm 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.
2024
2023
$
$
191,143,727 (2023: 119,923,985) Ordinary shares
24,520,876
22,535,542
Share issue costs
(1,344,263)
(1,166,824)
Total issued capital
23,176,613
21,368,718
57
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
10 Trade and Other Payables
2024
2023
$
$
CURRENT
Trade and other payables
248,028
436,508
Other payables
21,663
37,954
Total trade and other payables
269,691
474,462
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.
2024
2023
$
$
CURRENT
Provision for employee benefits - annual leave
34,472
19,705
Total current employee benefits
34,472
19,705
NON CURRENT
Provision for employee benefits - long service leave
2,686
665
Total non-current employee benefits
2,686
665
(a) Leave obligations
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.
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 $34,472 (2023: $19,705), 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.
11 Employee Benefits
12 Issued Capital
(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.
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.
58
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
12 Issued Capital (continued)
Number of shares
Total
$
Balance at 1 July 2022
71,355,621
19,908,471
Issue at $0.035 pursuant to Placement - Tranche 1 (28-10-2022)
10,703,343
374,617
Issue at $0.035 pursuant to Entitlement Offer (28-11-2022)
14,991,156
524,691
Issue at $0.035 pursuant to Placement - Tranche 2 (16-12-2022)
14,010,943
490,383
Exercise of performance rights with nil cash consideration (27-01-2022)
68,871
-
Transfer from reserves on exercise of performance rights (27-01-2023)
-
5,000
Issue at $0.035 pursuant to Shortfall Offer (21-02-2023)
8,794,051
307,791
Less: Transaction costs arising on share issues
-
(242,235)
Balance at 30 June 2023
119,923,985
21,368,718
Issue at $0.022 pursuant to Entitlement Offer (08-12-2023)
43,437,967
955,635
Issue at $0.022 pursuant to Entitlement Offer (18-12-2023)
4,531,775
99,699
Issue at $0.04 pursuant to share placement (07-05-2024)
23,250,000
930,000
Less: Transaction costs arising on share issues
-
(177,439)
Balance at 30 June 2024
191,143,727
23,176,613
(a) Movements in ordinary shares
(i) The issue of 3,500,000 options to external consultants was approved by shareholders
at the general meeting held in December 2022.
(ii) On 31 August 2022, 275,483 performance rights were issued to employees, as part of
their performance bonus of $20,000 recognised as expenses in the prior year.
(iii) The issue of 2,000,000 options to external consultants was approved by shareholders
at the general meeting held in July 2024.
(iv) On 1 August 2023, 1,611,176 performance rights were issued to an employee as part
of their performance bonus of $54,780 recognised as an expense in the prior year.
(v) This number of options balance does not include options issued during the year that
are not in relation to share based payments.
Unlisted options:
For every 2 shares subscribed for in the placement on 28 November 2022, 15 December
2022 and 21 February 2023, one listed option was issued with an exercise price of 7c per
option, expiring on 11 December 2025. The total number of unlisted options at 30 June
2024 is 24,249,784.
59
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
13 Reserves (continued)
Note
Number of
options
Number of
performance
Total
$
Balance at 1 July 2022
4,877,704
-
439,488
Options expired/lapsed during the year
(1,217,704)
-
(214,970)
Options forfeited
(265,000)
-
(5,903)
Issue of options to external consultants
(i)
3,500,000
-
53,550
Share-based payment expenses of options
issued in prior years
-
-
-
60,533
Issue of performance rights
(ii)
- 275,483
20,000
Performance rights exercised during the year
- (68,871)
(5,000)
Balance at 30 June 2023
6,895,000 206,612
347,698
Options expired/lapsed during the year
(1,500,000)
(153,047)
Options forfeited during the year
(225,000)
-
(13,631)
Issue of options to external consultants
(iii)
2,000,000
-
32,000
Share-based payment expenses of options
issued in prior years
-
-
10,230
Issue of performance rights
(iv)
- 1,611,176
54,780
Balance at 30 June 2024
(v)
7,170,000 1,817,788
278,030
(b) Movement in options and performance rights
60
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
13 Reserves (continued)
(b) Movement in options and performance rights
Fair value of options granted:
See note 20(a)(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
2024 included:
2024
Grant Date
Expiry Date
Exercise
price
$
No. of
options
Share
price at
grant date
$
Expected
volatility
Dividend
yield
Riskfree
interest
rate
Fair
value at
grant date
per option
$
07 May 2024
06 May 2027
0.1000
2,000,000
0.046
79.60%
- %
3.91%
0.0160
2,000,000
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:
2024
$
2023
$
Loss for the year
(1,451,242)
(2,023,188)
Non-cash flows in loss:
depreciation and amortisation
6(b)
2,463
24,763
finance costs
-
2,370
issue of performance rights
20,000
(gain) on lease modification
-
(6,096)
share-based payments
20
28,599
54,629
Changes in assets and liabilities:
decrease/(increase) in trade and other receivables
332,986
(495,553)
(increase)/decrease in other assets
(6,574)
7,316
(decrease)/increase in trade and other payables
(225,196)
173,108
decrease/(increase) in other liabilities
16,788
(15,245)
Net cash (outflow) from operations
(1,247,396)
(2,257,896)
61
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
14 Cash Flow Information (continued)
(b) Non-cash investing and financing activities
Reconciliation of net (loss) to net cash provided by operating activities:
2024
$
2023
$
Financial instruments with cash flow risk
Cash and cash equivalents
8
932,016
351,184
Term deposits
50,091
50,000
Total financial instruments with cash flow risk
982,107
401,184
Non-cash investing and financing activities disclosed in other notes are:
• Options/performance rights issued for no cash consideration - note 20.
15 Financial Risk Management
This note explains the Group’s exposure to financial risks and how these risks could affect the Group’s future
financial performance. The Group’s risk management is predominantly controlled by the board. The board monitors
the Group’s financial risk management policies and exposures and approves substantial financial transactions. It
also reviews the effectiveness of internal controls relating to market risk, credit risk and liquidity risk.
(a) Market risk
(i) Foreign exchange risk
The majority of the Group’s operations are denominated in Australian dollars, with the few exceptions on services
acquired from overseas suppliers but at a marginally insignificant amount and frequency. Therefore, management
has concluded that market risk from foreign exchange fluctuation is not material.
(ii) Cash flow and fair value interest rate risk
The Group's main interest rate risk arises from cash and cash equivalents and other financial assets at amortised
cost (deposits at call) held, which expose the Group to cash flow interest rate risk. During 2024 and 2023, the
Group’s cash and cash equivalents and deposits at call at variable rates were denominated in Australian dollars.
The Group's exposure to interest rate risk at the end of the reporting year, expressed in Australian dollars, was as
follows:
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 +/-4.93% (2023: +/-3.38%), with effect from the beginning of the year. The use of 4.93% was determined
based on analysis of the Reserve Bank of Australia cash rate change, on an absolute value basis, at 30 June 2024 and the
previous four balance dates. The average cash rate at these balance dates was 1.93% (2023: 1.31%)
The average change to the cash rate between balance dates was 255.69% (2023: 257.80%). By multiplying these two
values, the interest rate risk was derived. Loss sensitivity to movements in interest rates is reasonably consistent between
2024 and 2023 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.
2024
2023
+/-4.93%
+/-3.38%
$
$
Impact on loss for the period
48, 465
12,945
Impact on other components of equity
-
-
62
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
15 Financial Risk Management (continued)
(b) Credit risk
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.
(b) 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.
Less than
6 months
$
6-12
months
$
Between
1 and 2
years
$
Between
2 and 5
years
$
Over 5
years
$
Total
contractual
cash flows
$
Carrying
amount
(assets)/
liabilities
$
At 30 June
2024
Payables
269,691
-
-
-
-
269,691
269,691
Total
269,691
-
-
-
-
269,691
269,691
At 30 June
2023
Payables
474,462
-
-
-
-
474,462
474,462
Total
474,462
-
-
-
-
474,462
474,462
(i) Maturities of financial liabilities
63
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
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 2024, the Group held cash and equivalents of $982,107 (2023: $351,184). 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 2024 (2023: nil). The Group’s ranking
account balance was nil at 30 June 2024 (2023: nil).
17 Interests in Subsidiaries
The Group's principal subsidiaries at 30 June 2024 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.
Principal place of business /
Country of Incorporation
Percentage Owned (%)*
2024
Percentage Owned (%)*
2023
Subsidiaries:
Sarantis Pty Ltd
Australia
100
100
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:
2024
$
2023
$
Short-term employee benefits
586,425
595,253
Post-employment benefits
63,255
61,517
Long-term benefits
1,658
584
Share-based payments
65,010
129,515
Total key management personnel
compensation
716,348
786,869
(c) Transactions with other related parties
No transactions with related parties occurred in 2023 or 2024.
18 Events Occurring After the Reporting Date
The consolidated financial report was authorised for issue on August 2024 by the board of directors.
On 9 July 2024, 1,750,000 shares and 4,500,000 options were issued to Directors pursuant to the share placement
offer announced on 1 May 2024 as approved by shareholders at a general meeting held on 5 July 2024.
*The percentage of ownership interest held is equivalent to the percentage voting rights for all subsidiaries.
64
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
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:
Share options outstanding at the end of the year have the following expiry date and exercise prices:
2024
Average exercise price
per share option
$
Number of options
No.
2023 Average exercise
price per share option
$
Number of options
No.
As at 1 July
0.23
3,395,000
0.48
4,877,704
Forfeited/lapsed during
the year
0.25
(1,725,000)
0.44
(1,482,704)
As at 30 June
0.23
1,670,000
0.23
3,395,000
Vested and exercisable
at 30 June
0.22
1,570,000
0.24
2,520,000
The forfeited/lapsed options were fully vested before they forfeited/lapsed.
Number
Grant Date
Vesting Date
Expiry Date
Exercise
Options
20,000
23 August 2021
23 August 2022
18 August 2025
0.2256
Options
900,000
16 November 2021
16 November 2022
14 November 2025
0.2256
Options
450,000
16 November 2022
16 November 2023
14 November 2026
0.2256
Options
100,000
29 November 2021
25 November 2022
25 November 2023
0.2030
Options
100,000
29 November 2022
25 November 2023
25 November 2024
0.2030
Options
100,000
29 November 2023
25 November 2024
25 November 2025
0.2030
1,670,000
2024
2023
Weighted average remaining contractual life of options outstanding at end of period
1.38
1.52
(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.
65
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
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 2024.
(b) Executive option plan
Total expenses arising from share-based payment transactions recognised during the year are as follows:
2024
$
2023
$
Options issued under EOP
10,230
60,533
Options issued to external brokers
13(b)
32,000
Adjustment for previous share-based payments not vested
(13,631)
(5,904)
Total
28,599
54,629
(i) Performance pay
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 longterm incentives
under the Executive Option Plan (EOP). The performance rights for the 2023 financial year were granted on 1 August
2023.
(ii) Options issued to external consultants
The issue of 2,000,000 options to external consultants was approved by shareholders at the general meeting held in
July 2024. See 13(b) for the fair value measurement of these options.
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
2024
$
2023
$
Audit and other assurance services
- auditing or reviewing the financial
statements
64,000
65,500
Taxation services
- tax compliance services
-
38,000
Total auditor's remuneration
64,000
103,500
66
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
22 Loss Per Share
(a) Basic (loss) per share
2024
Cents
2023
Cents
Basic (loss) per share
(0.97)
(2.07)
(b) Diluted (loss) per share
2024
Cents
2023
Cents
Diluted (loss) per share
(0.97)
(2.07)
(c) Reconciliation of (loss) used in calculating basic and diluted loss per share
2024
$
2023
$
(Loss) attributable to the ordinary equity holders of the
company used in calculating: (loss) per share:
(Loss) for the year
(1,451,242)
(2,023,188)
(d) Weighted average number of ordinary shares outstanding during the year used in calculating basic EPS
2024
No.
2023
No.
Weighted average number of ordinary shares outstanding
during the year used in calculating basic EPS
150,016,572
97,917,397
On the basis of the Group's losses, the outstanding options as at 30 June 2024 are considered to be anti-
dilutive and therefore were excluded from the diluted weighted average number of ordinary shares
calculation.
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 2024 (2023: nil).
(b) Contingent liabilities
The parent entity did not have any contingent liabilities as at 30 June 2024 or 30 June 2023.
(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 2024 or 30 June 2023.
67
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
23 Parent Entity (continued)
(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 installments. 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.
24 Contingencies
In the opinion of the Directors, the Company did not have any contingencies at 30 June 2024
(30 June 2023: 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
68
Consolidated Entity Disclosure Statement
as at 30 June 2024
Basis of Preparation
This Consolidated Entity Disclosure Statement (CEDS) has been prepared in accordance with
the Corporations Act 2001 and includes required information for each entity that was part of the
consolidated entity as at the end of the financial year.
Consolidated entity
This CEDS includes only those entities consolidated as at the end of the financial year in
accordance with AASB 10 Consolidated Financial Statements (AASB 10).
Determination of Tax Residency
Section 295 (3A) of the Corporations Act 2001 defines tax residency as having the meaning in
the Income Tax Assessment Act 1997. The determination of tax residency involves judgment as
there are currently several different interpretations that could be adopted, and which could give
rise to a different conclusion on residency.
In determining tax residency, the consolidated entity has applied the following interpretations:
Australian tax residency
The consolidated entity has applied current legislation and judicial precedent, including having
regard to the Tax Commissioner's public guidance in Tax Ruling TR 2018/5 Income tax: central
management and control test of residency.
Partnerships and Trusts
Australian tax law does not contain specific residency tests for partnerships and trusts.
Generally, these entities are taxed on a flow-through basis so there is no need for a general
residence test. There are some provisions which treat trusts as residents for certain purposes
but this does not mean the trust itself is an entity that is subject to tax.
Additional disclosures on the tax status of partnerships and trusts have been provided where
relevant.
Body corporates
Tax residency
Entity name
Entity type
Place formed or
incorporated
% of share capital
held
Australian or
foreign
Foreign
jurisdiction
Anatara
Lifesciences Ltd
Body corporate
Australia
N/A
Australian
N/A
Sarantis Pty Ltd
Body corporate
Australia
100
Australian
N/A
69
Director’s Declaration
as at 30 June 2024
The directors of the Company declare that:
1. the consolidated financial statements and notes set out on pages 22 - 50 are in
accordance with the Corporations Act 2001, including:
a. comply with Australian Accounting Standards, the Corporations Regulations
2001 and other mandatory professional reporting requirements; and
b. giving a true and fair view of the consolidated group's financial position as at 30
June 2024 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.
3. in the directors' opinion, the attached consolidated entity disclosure statement is true
and correct as at 30 June 2024.
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 22 day of August 2024
70
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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).
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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.
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 2024, 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 material accounting policy information, the consolidated entity
disclosure statement 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 2024 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.
Grant Thornton Audit Pty Ltd
2
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
$1,451,242 during the year ended 30 June 2024, and the Group’s operating cash outflows were $1,247,396. As
at 30 June 2024 the Group had total cash and cash equivalents of $982,107. 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 6(a) 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 the R&D tax incentive 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 year 1 July 2023 to 30 June
2024.
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.
Our procedures included, amongst others:
•
Obtaining management’s R&D incentive calculations
that have been 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 -verify 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;
•
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 is in accordance with expenditure
recorded in the general ledger;
•
Vouching a sample of expenditure items included in
the estimate to supporting documentation to verify
that they are appropriately recognised in the
accounting records and 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.
71
Grant Thornton Audit Pty Ltd 3
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 2024, 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:
a the financial report that gives a true and fair view in accordance with Australian Accounting Standards and
the Corporations Act 2001 (other than the consolidated entity disclosure statement); and
b the consolidated entity disclosure statement that is true and correct in accordance with the Corporations
Act 2001, and
for such internal control as the directors determine is necessary to enable the preparation of:
i
i) the financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error; and
ii
ii) the consolidated entity disclosure statement that is true and correct and is free of 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
2024.
In our opinion, the Remuneration Report of Anatara Lifesciences Ltd, for the year ended 30 June 2024
complies with section 300A of the Corporations Act 2001.
Grant Thornton Audit Pty Ltd 4
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, 22 August 2024
72
Top Shareholders as of 9/25/2024
ANATARA LIFESCIENCES LIMITED
FULLY PAID ORDINARY SHARES (Total)
Top Holders (Ungrouped) As Of 9/25/2024
Composition : FPO
Rank
Name
Units
% Units
1
RTL GROUP INVESTMENTS PTY LTD
22,000,000
11.41
2
UBS NOMINEES PTY LTD
16,642,732
8.63
3
SCINTILLA STRATEGIC INVESTMENTS LIMITED
8,000,000
4.15
4
HIMSTEDT & CO PTY LTD
6,900,000
3.58
5
PARMA CORPORATION PTY LTD
5,576,771
2.89
6
RTL GROUP INVESTMENTS PTY LTD
5,000,000
2.59
7
MR SAMUEL FRANCIS HUNTER
4,862,662
2.52
8
JOHN DAHLSEN SUPERANNUATION FUND PTY LTD
4,200,000
2.18
9
MOUSETRAP NOMINEES PTY LTD
3,953,053
2.05
73
Top Shareholders as of 9/25/2024 (continued)
10
MR MICHAEL ANDREW WHITING + MRS TRACEY ANNE WHITING
3,625,000
1.88
11
MYENG PTY LTD
3,580,211
1.86
12
CALAMA HOLDINGS PTY LTD
3,371,940
1.75
13
SYMINGTON PTY LTD
3,340,000
1.73
14
TOUCAN TRADING PTY LTD
3,097,955
1.61
15
LONGRIDGE PARTNERS PTY LTD
2,839,248
1.47
16
MR BRENDAN PHYLAND
2,651,659
1.37
17
MR ANDRE NICHOLAS MARSCHKE + MRS SHALEAH ANN MARSCHKE
2,600,000
1.35
18
OCTIFIL PTY LTD
2,595,416
1.35
19
TARANDI 1996 PTY LTD
2,490,002
1.29
20
MR DAVID LIONEL BROOKES + MRS ELISABETH MARY BROOKES
2,300,000
1.19
Totals: Top 20 holders of FULLY PAID ORDINARY SHARES (Total)
109,626,649
56.83
Total Remaining Holders Balance
83,267,078
43.17
Selection Criteria: Address: Hidden Holder ID: Hidden Control Account: Included
74
Range of Shareholdings
ANATARA LIFESCIENCES LIMITED
FULLY PAID ORDINARY SHARES (Total)
Range of Units As Of 9/25/2024
Composition : FPO
Range
Total holders
Units
% Units
1 - 1,000
37
12,483
0.01
1,001 - 5,000
123
460,068
0.24
5,001 - 10,000
113
889,620
0.46
10,001 - 100,000
287
10,281,126
5.33
100,001 Over
163
181,250,430
93.96
Rounding
0.00
Total
723
192,893,727
100.00
Unmarketable Parcels
Minimum Parcel Size
Holders
Units
Minimum $ 500.00 parcel at $ 0.0720 per unit
6,945
198
699,243
Selection Criteria: Hide Unmarketable Parcels: Shown Control Account: Included
ABN 41 145 239 872