Annual Report 2020
6-8 Wallace Avenue,
Toorak Victoria 3142
Australia
T: + 61 (0)3 9827 8999
F: + 61 (0)3 9859 7701
www.antisense.com.au
Contents to Annual Report
Operations Report
Intellectual Property Report
Directors' Report
Corporate Governance
Auditor Independence Declaration
Page
1
6
9
21
22
Consolidated Statement of Profi t or Loss
and Other Comprehensive Income
23
Consolidated Statement of Financial
Position
Consolidated Statement of Changes
in Equity
24
25
Consolidated Statement of Cash Flows
26
Notes to the Financial Statements
Directors' Declaration
Independent Auditor's Report
Shareholder Information
Corporate Information
27
50
51
56
57
B
2020 ANNUAL REPORT
ATL1102 for Duchenne Muscular Dystrophy
(DMD)
The Company is undertaking clinical development of
ATL1102 in patients with Duchenne Muscular Dystrophy
(DMD). DMD is caused by a mutation in the muscle
dystrophin gene leading to severe progressive muscle
loss and premature death. One of the most common
fatal genetic disorders, DMD aff ects approximately one in
every 3,500 to 5,000 males worldwide. A key challenge
in the management of DMD patients is to reduce the
infl ammation that exacerbates the muscle fi bre damage.
It has been reported in scientifi c literature that patients
with DMD who have a greater number of T cells with high
levels of CD49d (ATL1102's biological target) on their
surface have more severe and rapid disease progression.
ATL1102 is being developed as a novel treatment for the
infl ammation that exacerbates muscle fi bre damage in
DMD patients for which the current available treatment
is corticosteroids. Corticosteroids have a range of serious
side eff ects when used for a prolonged period as required
in DMD. As a consequence, there is an acknowledged high
need for new therapeutic approaches for the treatment
of infl ammation associated with DMD.
The Company has conducted an open label six-month
dosing trial of ATL1102 in nine non-ambulant patients
with DMD aged between 10 and 18 years at the
neuromuscular centre of the Royal Children's Hospital
(RCH) which operates the largest clinic in the southern
hemisphere treating children with DMD.
The primary endpoints of the trial relate to the safety
and tolerability of ATL1102 with the effi cacy of ATL1102
assessed in terms of its eff ects on disease processes and
progression (e.g. the upper limb strength and function of
the boys).
Operations Report
Overview of Company’s Activities
Antisense Therapeutics Limited (“the Company” or
“Antisense Therapeutics”) continued its focus on
advancing its antisense oligonucleotide products under
development. The following report on operations details
the research and development activities undertaken by
the Company in the period.
Partnership with Ionis Pharmaceuticals
Inc.
Antisense Therapeutics has world-wide exclusive licenses
to use two antisense compounds (ATL1102 and ATL1103)
for all disease indications via its partnership with Ionis
Pharmaceuticals Inc (Ionis). As the leader in RNA-targeted
drug discovery and development, Ionis has created an
effi cient, broadly applicable, drug discovery platform
that can treat diseases where no other therapeutic
approaches have proven eff ective. Ionis has three
approved antisense drugs and a pipeline of more than
40 novel medicines designed to treat a broad range of
diseases including cardio-renal and metabolic diseases,
neurological diseases, infectious diseases, pulmonary
diseases and cancer.
The partnership with Ionis provides Antisense
Therapeutics with access to Ionis antisense intellectual
property and drug development expertise to facilitate the
development and commercialization of the Company’s
antisense compounds. In turn Ionis receives a share
of product commercialization proceeds received by
Antisense Therapeutics.
About ATL1102
ATL1102 is an antisense inhibitor of CD49d, a subunit
of VLA-4 (Very Late Antigen-4). Antisense inhibition of
VLA-4 expression has demonstrated activity in a number
of animal models of infl ammatory disease including
asthma and MS, with the MS animal data having been
published in a peer reviewed scientifi c journal. ATL1102
was shown to be highly eff ective in reducing MS lesions
in a Phase IIa clinical trial in RR-MS patients. The ATL1102
Phase IIa clinical data has been published in the medical
Journal Neurology (Limmroth, V. et al Neurology, 2014;
83(20):1780-1788).
ANNUAL REPORT 2020 1
Operations Report continued
Progress
On 27th February 2020 the Company announced
appointment of Dr. Gil Price as Consultant Medical
Director. Dr. Price is a clinical physician trained in internal
medicine with a long-standing focus in drug development,
adverse drug reactions, drug utilization and regulation.
Dr. Price is an experienced biotech executive and
entrepreneur with a depth of expertise across clinical
asset investment strategy, evaluation, fi nancing and
execution. Over the years Dr. Price has served on multiple
boards of public, private and not-for-profi t entities. From
2007 to 2016, Dr. Price was a non-executive director
of Sarepta Therapeutics, Inc., where he helped guide
Sarepta’s transition to a multi-billion dollar company with
the fi rst approved drug for DMD.
Dr. Price’s initial focus will be on engaging with Key
Opinion Leaders in the treatment of DMD and DMD
Patient Advocacy Groups to help increase the awareness
of the Company’s ATL1102 for DMD development
program and to translate the features and benefi ts
of the program to these audiences and to advocates
internationally and in the capital markets. Upon
commencement of the Company’s pivotal trial of ATL1102
in Europe, Dr Price’s responsibilities will also include
pharmacovigilance oversight, adverse event reporting and
clinical safety monitoring.
On 18th March the Company announced that the Phase II
DMD trial database had been locked and that fi nal results
were on track.
On 21st May the Company reported the successful results
of its ATL1102 Phase II DMD trial, supporting ongoing
preparations for advancement into a potentially pivotal
Phase IIb clinical trial.
Key highlights:
• Primary endpoint met with confi rmation of drug’s
safety and tolerability;
• Strong eff ects on secondary endpoint activity markers
and disease progression;
•
Improvement or stabilisation across diff erent
measures of motor function & strength;
• Activity on the targeted CD49d immune cells
consistent with drug’s proposed mechanism of action;
• MRI data suggests stabilisation of percentage of fat in
muscles and preservation of functional muscle mass.
2
2020 ANNUAL REPORT
The primary objective of the ATL1102 trial was to
assess the safety and tolerability of 25 mg of ATL1102
administered once weekly (subcutaneous injection) for
24 weeks in nine non-ambulatory participants with DMD
ATL1102 met its primary end point and demonstrated an
excellent safety profi le in this trial. ATL1102 was assessed
to be generally safe and well tolerated. No Serious
Adverse Events were reported with no safety concerns
expressed by the Data Safety Monitoring Board. There
were no participant withdrawals from the study.
Overall, the study has shown that ATL1102 treatment
results in consistent improvements or stabilisation
across the diff erent measures of motor function and
strength. The Company noted that its international Key
Opinion Leaders and advisors were encouraged by the
results of functional endpoints (physical parameters)
that demonstrate strong initial effi cacy with the study
results indicating that a majority of the boys experienced
either improvement or no deterioration in upper body
measurements of a number of functional parameters.
These results compare favourably with data reported
in a variety of historical studies, of progressive and
continuous deterioration in physical function in non-
ambulant patients with DMD over time.
Additionally, MRI assessment of the upper limb muscles
of the patients with DMD had also shown the drug’s
apparent benefi cial eff ects stabilising the fat fraction
percentage within the muscles of the forearm (increase
in fat levels is another key marker of disease progression
in non-ambulant DMD boys). The data showed a
stabilisation in the percentage of fat in the forearm
muscles and an increase/maintenance of functional
muscle mass, which is both outstanding and unexpected
for a drug treating the infl ammation.
The Company advised that the results were highly
supportive of the Company’s plans for a Phase IIb
clinical trial of ATL1102 in DMD and that it had made
a submission to the European Medicines Agency for
Scientifi c Advice with the results of their evaluation to
direct the Company on its preparation and submission
of its clinical trial application for a Phase IIb trial in
Europe and UK. The Company also advised that it was in
the process of preparing submissions for Orphan Drug
Designation for ATL1102’s use in DMD in the US and the
EU and that it had also commenced activities for the
manufacture of additional clinical supplies of ATL1102.
Ongoing engagement with DMD community,
investors and pharmaceutical companies
The Company continued its communication and
active engagement with key opinion leaders, potential
collaborators, investors and commercial partners as a
key operational priority. During the period the Company
presented to investors, brokers, pharmaceutical
companies and participated at biotechnology and investor
conferences, including:
• TechKnow Invest Roadshow, Sydney & Melbourne,
Australia, 22 & 24 October 2019.
• 2nd Neuromuscular Drug Development Summit in
Boston, MA, USA on 24 October 2019.
• 2019 Action Duchenne International Conference,
Hinkley, UK on 15 November 2019.
• 3rd Annual SACHS Neuroscience Innovation Forum,
San Francisco, USA, 12 January 2020.
• Fund manager & Broker presentations, Sydney &
Melbourne, Australia, 22-23 January 2020.
• Proactive Investors CEO Investor Sessions, Sydney &
Melbourne, Australia, 3-4 February 2020.
What is Duchenne Muscular
Dystrophy?
Duchenne Muscular Dystrophy (DMD) is an
X-linked disease that aff ects 1 in 3,600 to 5,000
live male births (Bushby et al, 2010). DMD occurs
as a result of mutations in the dystrophin gene
which causes a defect in the protein or reduction
or absence of the dystrophin protein. Children
with DMD have dystrophin defi cient muscles and
are susceptible to contraction induced injury to
muscle which triggers the immune system which
exacerbates muscle damage (Pinto Mariz, 2015).
Ongoing deterioration in muscle strength aff ects
lower limbs leading to impaired mobility, and
also aff ects upper limbs, leading to further loss
of function and self-care ability. The need for
wheelchair use can occur in early teenage years,
with respiratory, cardiac, cognitive dysfunction
also emerging. With no intervention, the mean
age of life is approximately 19 years. The
management of the infl ammation associated with
DMD is currently via the use of corticosteroids,
which have insuffi cient effi cacy and signifi cant
side eff ects.
• Duchenne ACTT Now Conference 2020, Melbourne,
Australia, 8-10 March 2020.
• NWR Communications Virtual Health Conference,
Australia, 4 May 2020.
• ATL1102 Phase II DMD results presentation webinar,
Australia, 22 May 2020.
• Poster Presentation, Muscular Dystrophy Association
Virtual Conference 2020 website, US June - August
2020.
• Parent Project Muscular Dystrophy webinar, US 17
June 2020.
• ShareCafé Small Cap “Hidden Gems” Webinar,
Australia, 26 June 2020.
ANNUAL REPORT 2020 3
Operations Report continued
Events After The Balance Date
On 30th July the Company announced that it had
received European Medicines Agency (EMA) feedback
that refl ected the prior scientifi c advice received from
the three European Union national authorities on the
appropriateness of the key trial design parameters of
dose duration, safety monitoring plan, endpoints, and
potential pivotal status for the planned Phase IIb study
of ATL1102 in non-ambulant boys with DMD.
In light of the positive Phase II trial results, the Company
advised that is was now looking to include a 25mg
dosing arm into the Phase IIb trial with the view that
this could be a clinically eff ective dose in this study. The
EMA advised that further rationale be provided for the
selection of the proposed higher dose levels and for
consideration to be given to the use of intermediate
doses and an increase to the sample size.
As the next step, the EMA encouraged the Company to
submit its Paediatric Investigational Plan (PIP) to the EMA
Paediatric Committee (PDCO). The Company expects
to address EMA Scientifi c Advice recommendations
and confi rm the Phase IIb trial design through its PIP
application. Initial PDCO feedback is to be received ahead
of submitting the Phase IIb trial application.
The Company noted that it had recently commenced
activities for the manufacture of clinical trial supplies
of ATL1102 for the Phase IIb trial including analytical
method development and process optimisation and that
the Company had also made prepayments to lock in with
its Contract Manufacture Organisation the manufacture
of this batch of ATL1102 and was planning to have
clinical trial supplies available in line with the receipt of
PDCO feedback and the approval to commence the trial,
anticipated in 1H’2021.
In parallel with the planning for the Phase IIb clinical trial
in Europe, the Company highlighted that it had been
engaged in productive interactions with US based key
opinion leaders, Advocacy Groups (PPMD and MDA), and
expert regulatory consultants on the appropriate clinical
path for ATL1102 in DMD in the US.
Given the positive Phase II trial results at the 25mg per
week dose level, the Company is working with its expert
advisors on the clinical development and regulatory
path for the US, noting that there are potential fast
track or accelerated designations available to companies
developing drugs for orphan indications in need of
improved therapies such as in DMD. Following the
4
2020 ANNUAL REPORT
requisite strategic advice from its expert advisors the
Company would then engage with the US Food and
Drug Administration (FDA) to defi ne the path forward as
a priority.
On 3rd August the Company announced that it had
submitted its application for Orphan Drug designation
of the Company’s drug ATL1102 for DMD to the FDA’s
Offi ce of Orphan Products Development (OOPD).
Orphan drug designation may be granted by the FDA to
drugs intended for the safe and eff ective treatment of
rare diseases that aff ect fewer than 200,000 people in
the U.S. The FDA provides incentives to help accelerate
the development of products for rare diseases, which
may include tax credits towards the cost of clinical trials,
waiver of US prescription drug fi ling fees and orphan
product exclusivity for seven years upon marketing
authorisation. Accordingly, potential marketers of
orphan drugs generally place a substantial premium on
their commercial value.
The Company noted that it was also in the process of
applying for Orphan Drug designation for ATL1102 in
DMD to the European Medicines Agency and expects to
submit its application in the current quarter.
ATL1102 for Multiple Sclerosis (MS) and other
infl ammatory indications
ATL1102 was previously shown to be highly eff ective
in reducing MS infl ammatory brain lesions in a Phase
IIa clinical trial in Relapsing Remitting MS patients. The
ATL1102 Phase IIa clinical data has been published
in the medical Journal Neurology (Limmroth, V. et al
Neurology). The Company previously reported that
it had submitted an Investigational New Drug (IND)
application to the US Food and drug Administration
(FDA) for the conduct of a Phase IIb trial in MS patients
and had received notifi cation from the FDA that the
study could proceed at a lower (25mg/week) dose for 6
months under a partial hold introduced by the FDA.
On 9th February the Company reported that following
positive clinical trial results in the Phase II clinical trial of
ATL1102, the Company was actively exploring clinical
development opportunities where infl ammation plays a
key role in disease progression and that the ATL1102 DMD
trial potentially provides support for undertaking studies in
MS patients at and above the FDA approved dose.
The Company noted that MS drug sales in 2018 were US$23
Billion and forecast to grow to US$39 Billion by 2026.
In addition to MS, the Company advised that it sees exciting
potential for ATL1102’s use in other neuroinfl ammatory
and muscular dystrophy disorders given the expected
antisense platform and CD49d target based advantages
in these applications. In 2019 the Company fi led patent
applications to support clinical development and
commercialisation of ATL1102 in muscular dystrophies in
addition to DMD and noted that it would continue to fi le
new patents to broaden IP protection and add further
commercial value to the ATL1102 asset while expanding
the Company’s product pipeline.
ATL1103 for Acromegaly
ATL1103 also referred to as atesidorsen is an antisense
drug designed to block growth hormone receptor (GHr)
expression thereby reducing levels of the hormone
insulin-like growth factor-I (IGF-I) in the blood and
is a potential treatment for diseases associated with
excessive growth hormone action. By inhibiting GHr
production, ATL1103 in turn reduces IGF-I levels in the
blood (serum). There are a number of diseases that
are associated with excess GH and IGF-I action. These
diseases include acromegaly, an abnormal growth
disorder of organs, face, hands and feet; diabetic
retinopathy, a common disease of the eye and a major
cause of blindness; diabetic nephropathy, a common
disease of the kidney and major cause of kidney failure,
and certain forms of cancer.
What is Acromegaly?
Acromegaly is a serious chronic life threatening
disease triggered by excess secretion of growth
hormone (GH) by benign pituitary tumours.
Oversupply of GH over stimulates liver, fat and
kidney cells, through their GH receptors, to
produce excess levels of Insulin-Like Growth
Factor-I (IGF-I) in the blood manifesting in
abnormal growth of the face, hands and feet,
and enlargement of body organs including liver,
kidney and heart. The primary treatments for
acromegaly are to surgically remove the pituitary
gland and/or drug therapy to normalize GH and
serum IGF-I levels. In North America and Europe
there are approximately 85,000 diagnosed
acromegaly patients with about half requiring
drug therapy.
What is Multiple Sclerosis?
Multiple Sclerosis (MS) is a life-long, chronic
disease that progressively destroys the central
nervous system (CNS). It aff ects approximately
400,000 people in North America and more than 1
million worldwide. It is a disease that aff ects more
women than men, with onset typically occurring
between 20 and 40 years of age. Symptoms of
MS may include vision problems, loss of balance,
numbness, diffi culty walking and paralysis. In
Australia MS aff ects over 15,000 people.
ATL1103 is in clinical development as a treatment
for acromegaly. Normalizing serum IGF-I levels is the
therapeutic goal in the treatment of acromegaly and
reducing the eff ects of IGF-I has a potential role in
the treatment of diabetic retinopathy, nephropathy
and certain forms of cancer. The Company conducted
a successful Phase II trial of ATL1103 with the trial
having met its primary effi cacy endpoint by showing a
statistically signifi cant average reduction in sIGF-1 levels.
The results of the Phase II trial have been published
in the leading peer-reviewed medical Journal, the
European Journal of Endocrinology (Trainer et al, Eur J
Endocrinol, 2018 May 22 - 179: 97-108). The Company
also conducted a successful high dose study of ATL1103
in adult patients with acromegaly in Australia. The US
Food and Drug Administration (FDA) and European
Commission have granted Orphan Drug designation to
ATL1103 for treatment of Acromegaly.
The Company’s current development focus is directed
towards the clinical development of ATL1102 in
DMD. Antisense Therapeutics believes, though, that
circumstances could present in the future where the
Company has the capacity and justifi cation to continue
to invest in the further clinical development of ATL1103.
Until that time, the Company will not apply further
resources to ATL1103 clinical development and will
continue to direct its focus and funds on the ATL1102 for
DMD program.
The Company is also continuing to pursue the potential
out-licensing of ATL1103 to support and fund its ongoing
clinical development.
ANNUAL REPORT 2020 5
Operations Report continued
Intellectual Property Report
R&D Tax Incentive
During the period the Company received from the
Australian Taxation Offi ce an R&D Tax Incentive payment
of $558,541 in relation to expenditure incurred on eligible
R&D activities for the 30 June 2019 fi nancial year.
Financial Position
At 30 June 2020, the Company had cash reserves
(including Term Deposits) of $4,059,442 (2019:
$2,903,542).
During the period the Company received $5.5 million via
exercise of ANPOB listed options and underwriting of
outstanding options as at expiry date of 19 December
2019 ($3.75m was received during the quarter ended 31
December 2019 and $1.75m in January 2020 following
settlement of underwriting shortfall) before capital
raising costs.
Events After The Balance Sheet Date
No matters or circumstances have arisen since the end
of the reporting period, not otherwise disclosed in this
report, which signifi cantly aff ected, or may signifi cantly
aff ect, the operations of the Company, the result of those
operations, or the state of aff airs of the Company in
subsequent fi nancial periods.
COVID19 Statement
COVID-19 factors that are causing signifi cant challenges
for the community at large are presently not adversely
impacting on the Company’s activities. The Company is
positioned to accommodate measures that are prudent
for us to take to safeguard the health of our staff ,
patients and the broader community and our staff are
able to work from home.
Antisense Therapeutics currently has 10 patent families
with 90 patents registered or in the process of being
registered and 19 patent applications pending covering
its two antisense drugs ATL1102 and ATL1103 and their
applications. Antisense Therapeutics has also licensed
from Ionis Pharmaceuticals, Ionis proprietary patents
and applications directed to the antisense drug platform
together with rights to other Ionis manufacturing
patent families.
Since reporting on the status of the Company’s
intellectual property portfolio in the 2019 Annual Report
the Company has expanded its patent portfolio as follows:
• European patent 14810926.7 has been allowed, and
is in the process of being granted and registered
in 10 European countries covering ATL1103 use in
combination with fi rst line acromegaly somatostatin
analogue treatment to reduce serum IGF-I in patients
who do not respond suffi ciently to somatostatin
analogues: protecting the invention to 2034,
extendible up to 5 years.
•
International application PCT/AU2018/050598
covering ATL1102 treatment of multiple sclerosis
hypointense brain lesions has been progressed into
the national phase in Australia, Canada, New Zealand,
USA and the regional phase in Europe, to protect the
invention to 2038.
•
International application PCT/AU2020/050445
has been fi led covering the use of ATL1102 in the
treatment of infl ammatory muscle diseases to 2040.
The progress outlined above has added signifi cant
intellectual property to our portfolio. Patents have been
registered for new applications and fi led in important
indications that underpin Antisense Therapeutics
commercialisation plans for its antisense drugs.
6
2020 ANNUAL REPORT
Country
Patent application or Patent No.
Current Status
Expiry
ATL1103 Patent Portfolio**
USA
USA
USA
7,803,781
8,299,039
8,637,484
Patent Registered
Patent Registered
Patent Registered
International
PCT/US2004/005896
National Phase applications
2004217508
2,517,101
04715642.7
Patent Registered
Patent Registered
Regional Phase – Granted.
Patent registered in the 10
European countries below
Patent Registered
Patent Registered
Patent Registered
Patent Registered
Patent Registered
Patent Registered
Patent Registered
Patent Registered
Patent Registered
Patent Registered
11194098.7 Divisional of 04715642.7
4837555
Regional Phase – Granted.
Patent registered in the 10
European countries below
Patent Registered
2014-042448 Divisional of 2006-508878
Patent Registered
Australia
Canada
Europe
Denmark
Finland
France
Germany
Italy
Spain
Sweden
Switzerland
The Netherlands
United Kingdom
Europe
Japan
Japan
New Zealand
USA
USA
542595
7,846,906
8,623,836
ATL1103 GHBP reduction Patents
USA
USA
9,371,530
9,988,635
ATL1103 Combination with Somavert Patents
Patent Registered
Patent Registered
Patent Registered
Patent Registered
Patent Registered
International
PCT/AU2013/000095
National Phase Applications
Australian
Canada
2013214698
2863499
Europe***
13743020.3
Japan
New Zealand
USA
USA
2014-555044
629004
9,717,778
9,821,034
Patent Registered
Under Examination
Regional Phase – Granted.
Patent registered in the 10
European countries below
Patent Registered
Patent Registered
Patent Registered
Patent Registered
2025*
2024*
2024*
2024*
2024
2024*
2024*
2024*
2024*
2024*
2024*
2024*
2024*
2024*
2024*
2024*
2024*
2024*
2024
2024*
2024*
2024*
2024*
2033
2033
2033
2033
2033
2033
2033
ANNUAL REPORT 2020 7
Intellectual Property Report continued
Country
Patent application or Patent No.
Current Status
Expiry
ATL1103 Combination with Somatostatin agonist Patents
International
PCT/AU2014/000613
Australian
Canada
2014280847
2918787
Europe***
14810926.7
Japan
New Zealand
USA
2016-518801
715825
14/897896
ATL1102 Patent Portfolio**
International Phase
Patent Registered
Under Examination
Regional Phase – Granted.
Patent registered in the 10
European countries below
Under Examination
Under Examination
Under Examination
ATL1102 MS active brain lesion reduction Patents
International
PCT/US2009/003760
National Phase applications
AU 2009271678
2,728562
09798248.2
Patent Registered
Patent Registered
Regional Phase – Granted
Australia
Canada
Europe***
Denmark
Finland
France
Germany
Italy
Spain
Sweden
Switzerland
The Netherlands
United Kingdom
Patent Registered
Patent Registered
Patent Registered
Patent Registered
Patent Registered
Patent Registered
Patent Registered
Patent Registered
Patent Registered
Patent Registered
Regional Phase – Granted.
Patent registered in the 10
European countries below
Patent Registered
Europe***
15155831.9 Divisional of 09798248.2
Japan
Japan
USA
USA
2011-516297
2014-208153 (Divisional of 2011-5516297)
Patent Registered
8,415,314
8,759,314
Patent Registered
Patent Registered
ATL1102 MS hypointense brain lesion reduction Patent
International
PCT/AU2018/050598
National Phase applications
Australia
Canada
Europe
New Zealand
USA
AU2018286483
18,816,566
760,076
16/622,820
8
2020 ANNUAL REPORT
Filed
Filed
Filed
Filed
Filed
2034
2034
2034
2034
2034
2034
2029*
2029
2029*
2029*
2029*
2029*
2029*
2029*
2029*
2029*
2029*
2029*
2029*
2029*
2029*
2029*
2029*
2038
2038
2038
2038
2038
Country
Patent application or Patent No.
Current Status
Expiry
ATL1102 Methods of reducing circulating leukocytes
Australia
Canada
USA
2011301712
2811228
9,885,048
Patent Registered
Under Examination
Patent Registered
ATL1102 Therapeutic uses and methods (for treating Muscular Dystrophy)
US Continuation –
in part
16/404561
International
International
PCT/AU2018/051353
PCT/AU2020/050445
Filed
Filed
Filed
ATL1102 Methods of mobilizing leukemia cells (for treating AML)
International
PCT/AU 2016/051059
National Phase applications
Australia
Canada
Europe
USA
2016/051059
3007424
16861126.7
15/971938
Filed
Filed
Filed
Filed
2031*
2031*
2031*
2039
2039
2040
2036*
2036
2036*
2036*
* Potential for up to 5 year extensions to the patent term once the product is a registered drug.
** ATL1102 and ATL1103 are also protected internationally by other Ionis proprietary antisense technology patents
and applications to which Antisense Therapeutics has world-wide license including US7015315 to 2023.
*** Designates all member states of European patent countries including all extension states.
Directors' Report
Directors
The Board of Directors of Antisense Therapeutics Limited present their report on the consolidated entity (referred
to hereafter as ‘the Company’) consisting of Antisense Therapeutics Limited and the entities it controlled at the end
of, or during, the Year Ended 30 June 2020. In order to comply with the provisions of the Corporations Act 2001, the
Board of Directors report as follows:
Mr Robert W Moses BA, MBA, FAICD, FAIM, Independent Non-Executive Chairman
Appointed to the Board
23 October 2001
Last elected by shareholders 29 November 2018
Experience
Robert (Bob) Moses was formerly Corporate Vice President of CSL Limited.
Mr. Moses draws on more than 40 years’ experience in the pharmaceutical/
biotechnology industry. During the period 1993-2001, Mr. Moses played a central role
in CSL's development internationally. Prior to joining CSL, Mr. Moses was Managing
Director of commercial law fi rm Freehills, Chairman and CEO of a NASDAQ listed
medical service company, and Corporate Manager of New Business Development
at ICI (now Orica). Mr. Moses is also the former Non-Executive Chairman of TGR
Biosciences Pty Ltd. Mr. Moses also spent 17 years in various management roles at
the multinational pharmaceutical company Eli Lilly.
Interest in shares & options
9,000,000 ordinary shares and 10,000,000 options over ordinary shares.
Committees
Chairman of the Remuneration Committee and member of the Audit Committee.
Directorships held in other
listed entities
Directorships previously
held in other listed entities
Nil
Nil
ANNUAL REPORT 2020 9
Directors' Report continued
Mr Mark Diamond BSc, MBA, Managing Director
Appointed to the Board
31 October 2001
Experience
Mark Diamond has over 30 years’ experience in the pharmaceutical and
biotechnology industry. Before joining Antisense Therapeutics Limited as MD
and CEO in 2001, Mr. Diamond was employed in the US as Director, Project
Planning/Business Development at Faulding Pharmaceuticals. Prior to this he
held the positions of Senior Manager, Business Development and In-licensing
within Faulding's European operation based in the UK and International Business
Development Manager with Faulding in Australia.
Interest in shares & options
4,242,772 ordinary shares and 14,000,000 options over ordinary shares.
Committees
Directorships held in other
listed entities
Directorships previously
held in other listed entities
Nil
Nil
Nil
Dr Graham Mitchell AO, RDA, BVSc, FACVSc, PhD, FTSE, FAA, Independent Non-Executive Director
Appointed to the Board
24 October 2001
Last elected by shareholders 29 November 2017
Experience
Graham Mitchell was a former senior researcher at the Walter & Eliza Hall Institute,
a Chief Scientist in Victorian Government Departments, and a Director of Research
in the R&D Division of CSL Limited. Dr. Mitchell is currently Principal and CEO of
Foursight Associates Pty Ltd.
Interest in shares & options
395,550 ordinary shares and 7,000,000 options over ordinary shares.
Committees
Member of the Remuneration Committee and Chairman of the Audit Committee.
Directorships held in other
listed entities
Directorships previously
held in other listed entities
Nil
Nil
Dr Gary W Pace BSc(Hons), PhD, FTSE, Independent Non-Executive Director
Appointed to the Board
9 November 2015
Last elected by shareholders 11 December 2019
Experience
Gary W Pace has more than 40 years of experience in the development and
commercialization of advanced technologies in biotechnology, pharmaceuticals,
medical devices and the food industries. He has long-term board level experience
with both multi-billion and small cap companies. In 2003 Dr. Pace was awarded a
Centenary Medal by the Australian Government “for service to Australian society
in research and development”, and in 2011 was awarded Director of the Year
(corporate governance) by the San Diego Directors Forum. In addition he has held
visiting academic positions at the Massachusetts Institute of Technology and the
University of Queensland. Dr. Pace is an elected Fellow of the Australian Academy
of Technological Sciences and Engineering.
Interest in shares & options
1,236,138 ordinary shares and 7,000,000 options over ordinary shares.
10
2020 ANNUAL REPORT
Dr Gary W Pace BSc(Hons), PhD, FTSE, Independent Non-Executive Director
Committees
Nil
Directorships held in other
listed entities
Dr. Pace is currently a director of Pacira Pharmaceuticals Inc. (NASDAQ: PCRX),
TrovaGene Oncology (NASDAQ: TROV) and Simavita Ltd (ASX: SVA).
Directorships previously
held in other listed entities
Invitrocue Limited (ASX:IVQ) – resigned 20 September 2019
Resmed Inc (ASX:RMD) – resigned 15 November 2018
Mr William Goolsbee BA, Independent Non-Executive Director
Appointed to the Board
15 October 2015
Last elected by shareholders 11 December 2019
Experience
William (Bill) Goolsbee was founder, Chairman and Chief Executive Offi cer of Horizon
Medical Inc. from 1987 until its acquisition by a unit of UBS Private Equity in 2002.
Mr. Goolsbee was a founding Director of ImmunoTherapy Corporation in 1993, and
became Chairman in 1995, a position he held until overseeing the successful acquisition
of ImmunoTherapy by AVI Biopharma, Inc. (now Sarepta Therapeutics) in 1998. Mr.
Goolsbee served as Chairman of privately held BMG Pharma LLC, a pharmaceutical
company, from 2006 through 2011 and of Metrodora Therapeutics until 2015. Currently
serves as an Independent Director of Helix BioMedix, Inc. since 2019.
Interest in shares & options
1,099,243 ordinary shares and 7,000,000 options over ordinary shares.
Committees
Nil
Directorships held in other
listed entities
Directorships previously
held in other listed entities
Mr. Goolsbee was until the end of 2016 a Director of Sarepta Therapeutics Inc.
Sarepta Therapeutics Inc. (NASDAQ:SRPT) - resigned 31 December 2016.
Mr Phillip Hains, Company Secretary and Chief Financial Offi cer
Appointed
9 November 2006
Experience
Phillip Hains is a Chartered Accountant operating a specialist public practice, 'The
CFO Solution'. The CFO Solution focuses on providing back offi ce support, fi nancial
reporting and compliance systems for listed public companies. A specialist in
the public company environment, Mr Hains has served the needs of a number of
company boards and their related committees. He has over 30 years' experience
in providing businesses with accounting, administration, compliance and general
management services.
Principal Activities
The principal activity of Antisense Therapeutics
Limited during the fi nancial year was the research and
development of novel antisense pharmaceuticals.
Signifi cant Changes in the State of
Aff airs
There have been no signifi cant changes in the state of
aff airs of the Company during the year.
Dividends
No dividends have been paid or declared since the
end of the previous fi nancial year, nor do the Directors
recommend the declaration of a dividend.
Signifi cant Events After the Balance
Date
There have been no other signifi cant events occurring
after the balance date which may aff ect either the
Company's operations or results of those operations or
the Company's state of aff airs.
ANNUAL REPORT 2020 11
Directors' Report continued
Likely Developments and Expected
Results
The likely developments in the Company's operations, to
the extent that such matters can be commented upon,
are covered in the 'Operations Report’.
Operating and Financial Review
The net loss after tax of the Company for Year Ended
30 June 2020 was $5,908,202 (including a non-cash
fully amortised Option issue "Share Based Payment" of
$2,420,086) (2019 loss : $2,944,499)
This result has been achieved after fully expensing all
research and development costs.
The Company had a cash reserve of $4,059,442 at 30
June 2020 ($2,903,542 at 30 June 2019).
The 'Operations Report' provides further details
regarding the progress made by the Company since
the prior fi nancial period, which have contributed to its
results for the year.
Risk Management
The Board is responsible for overseeing the
establishment and implementation of the risk
management system, and to review and assess the
eff ectiveness of the Company's implementation of that
system on a regular basis.
The Board and senior management will continue to
identify the general areas of risk and their impact on the
activities of the Company. The potential risk areas for the
Company include:
• effi cacy, safety and regulatory risk of pre-clinical and
clinical pharmaceutical development;
• fi nancial position of the Company and the fi nancial
outlook;
• economic outlook and share market activity;
• changing government policy (Australian and
overseas);
• competitors' products/research and development
programs;
• market demand and market prices for therapeutics;
• environmental regulations;
• ethical issues relating to pharmaceutical research and
development;
12
2020 ANNUAL REPORT
• the status of partnership and contractor relationships;
• other government regulations including those
specifi cally relating to the biotechnology and health
industries; and
• occupational health and safety and equal opportunity law.
Management will continue to perform a regular review of
the following:
• the major risks that occur within the business;
• the degree of risk involved;
• the current approach to managing the risk; and
• where appropriate, determine:
• any inadequacies of the current approach; and
• possible new approaches that more effi ciently and
eff ectively address the risk.
Biotechnology Companies – Inherent Risks
Pharmaceutical Research and Development (R&D)
Pharmaceutical R&D involves scientifi c uncertainty and
long lead times. Risks inherent in these activities include
uncertainty of the outcome of the Company's research
results; diffi culties or delays in development of any of the
Company's drug candidates; and general uncertainty related
to the scientifi c development of a new medical therapy.
The Company's drug compounds require signifi cant
pre-clinical and human clinical development prior to
commercialisation, which is uncertain, expensive and
time consuming. There may be adverse side eff ects or
inadequate therapeutic effi cacy of the Company's drug
candidates which would prevent further commercialisation.
There may be diffi culties or delays in the manufacturing
or testing of any of the Company's drug candidates. There
may also be adverse outcomes with the broader clinical
application of the antisense technology platform which
could have a negative impact on the Company's specifi c
drug development and commercialisation plans.
No assurance can be given that the Company's product
development eff orts will be successful, that any potential
product will be safe and effi cacious, that required
regulatory and pricing reimbursement approvals will be
obtained, that the Company's products will be capable of
being produced in commercial quantities at an acceptable
cost or at all, that the Company will have access to
suffi cient capital to successfully advance the products
through development or to fi nd suitable development
or commercial partners for the development and/or
commercialisation of the products and that any products,
if introduced, will achieve market acceptance.
Additional Capital Requirements
Pharmaceutical R&D activities require a high level of
funding over a long period of time to complete the
development and commercialisation of pharmaceutical
products. There is no assurance that additional funding
will be available to the Company in the future or be
secured on acceptable terms. If adequate funds are not
available, the Company's business will be materially and
adversely aff ected. If the Company is unable to access
capital to continue the development of its products, then
this could adversely impact on the collaboration and
licensing agreement with Ionis. If the Company unable to
meet certain performance obligations, it may lead to a
dispute with Ionis. Unresolved disputes may in turn lead to
potential termination of the license granted by Ionis to the
Company to exploit relevant products, with the relevant
product rights then returning to Ionis.
Partnering and licensing
Due to the signifi cant costs in drug discovery and
development it is common for biotechnology companies
to partner with larger biotechnology or pharmaceutical
companies to help progress drug development. While
the Company has previously entered into such licensing
agreements with pharmaceutical partners, there is no
guarantee that the Company will be able to maintain such
partnerships or license its products in the future. There
is also no guarantee that the Company will receive back
all the data generated by or related intellectual property
from its licensing partners. In the event that the Company
does license or partner the drugs in its pipeline, there is
no assurance as to the attractiveness of the commercial
terms nor any guarantee that the agreements will
generate a material commercial return for the Company.
Regulatory Approvals
Complex government health regulations, which are
subject to change, add uncertainty to obtaining
approval to undertake clinical development or obtaining
marketing and pricing reimbursement approval for
pharmaceutical products.
Delays may be experienced in obtaining such approvals,
or the regulatory authorities may require repeat of
diff erent or expanded animal safety studies or human
clinical trials, and these may add to the development
cost and delay products from moving into the next
phase of drug development and up to the point of
entering the market place. This may adversely aff ect the
competitive position of products and the fi nancial value
of the drug candidates to the Company.
There can be no assurance that regulatory clearance will
be obtained for a product or that the data obtained from
clinical trials will not be subject to varying interpretations.
There can be no assurance that the regulatory authorities
will agree with the Company's assessment of future
clinical trial results or with the suitability of the Company's
regulatory submissions for clinical trial, early access or
product marketing approval as applicable.
Competition
The Company will always remain subject to the material
risk arising from the intense competition that exists in
the pharmaceutical industry. A material risk therefore
exists that one or more competitive products may be
in human clinical development now or may enter into
human clinical development in the future. Competitive
products focusing on or directed at the same diseases or
protein targets as those that the Company is working on
may be developed by pharmaceutical companies or other
antisense drug companies including Ionis or any of its
other collaboration partners or licensees. Such products
could prove more effi cacious, safer, more cost eff ective
or more acceptable to patients than the Company
product. It is possible that a competitor may be in that
market place sooner than the Company and establish
itself as the preferred product.
Technology and Intellectual Property Rights
Securing rights to technology and patents is an integral
part of securing potential product value in the outcomes
of pharmaceutical R&D. The Company's success
depends, in part, on its ability to obtain patents, maintain
trade secret protection and operate without infringing
the proprietary rights of third parties. There can be no
assurance that any patents which the Company has
in licensed or may own, access or control will aff ord
the Company commercially signifi cant protection of
its technology or its products or have commercial
application, or that access to these patents will mean
that the Company will be free to commercialise its
drug candidates. The granting of a patent does not
guarantee that the rights of others are not infringed or
that competitors will not develop technology or products
to avoid the Company's patented technology or try
to invalidate the Company’s patents, or that it will be
commercially viable for the Company to defend against
such potential actions of competitors.
Accordingly, investment in companies specialising in drug
development must be regarded as highly speculative.
The Company strongly recommends that professional
investment advice be sought prior to such investments.
ANNUAL REPORT 2020 13
Directors' Report continued
Environmental Regulation and Performance
The Company is involved in pharmaceutical research and development, much of which is contracted out to third
parties, and it is the Director’s understanding that these activities do not create any signifi cant/material environmental
impact. To the best of the Company's knowledge, the scientifi c research activities undertaken by, or on behalf of, the
Company are in full compliance with all prescribed environmental regulations.
Directors' Meetings
The number of meetings of Directors (including meetings of committees of Directors) held during the year and the
number of meetings attended by each Director were as follows:
Board Meetings
Meetings of committees
Audit
Remuneration*
No. eligible
to attend
No. attended
No. eligible
to attend
No. attended
No. eligible
to attend
No. attended
Robert W Moses
Mr Mark Diamond
Dr Graham Mitchell
Dr Gary W Pace
Mr William Goolsbee
8
8
8
8
8
8
8
8
8
8
2
-
2
-
-
2
-
2
-
-
1
-
1
-
-
1
-
1
-
-
(*) A performance and remuneration review was conducted during the April Board meeting.
Committee Membership
As at the date of this report the Company had an Audit Committee and Remuneration Committee, with membership
of the committees as follows:
Chairman
Members
Audit Committee
Dr Graham Mitchell
Mr Robert W Moses
Remuneration Committee*
Mr Robert W Moses
Dr Graham Mitchell
Indemnifi cation and Insurance of Directors and Offi cers
Under the Company’s constitution:
(a) To the extent permitted by law and subject to the restrictions in section 199A and 199B of the Corporations Act
2001, the Company indemnifi es every person who is or has been an offi cer of the Company against any liability
(other than for legal costs) incurred by that person as an offi cer of the Company where the Company requested
the offi cer to accept appointment as Director.
(b) To the extent permitted by law and subject to the restrictions in sections 199A and 199B of the Corporations Act
2001, the Company indemnifi es every person who is or has been an offi cer of the Company against reasonable
legal costs incurred in defending an action for a liability incurred by that person as an offi cer of the Company.
The Company has insured its Directors, the Company Secretaries and executive offi cers for the fi nancial year ended
30 June 2020 under the Company's Directors' and Offi cers' Liability Insurance Policy, the Company cannot release
to any third party or otherwise publish details of the nature of the liabilities insured by the policy or the amount of
the premium. Accordingly, the Company relies on section 300(9) of the Corporations Act 2001 to exempt it from the
requirement to disclose the nature of the liability insured against and the premium amount of the relevant policy.
14
2020 ANNUAL REPORT
The Company also has in place a Deed of Indemnity, Access
and Insurance with each of the Directors. This Deed:
Auditor Independence and Non-Audit
Services
(1) indemnifi es the Director to the extent permitted by
law and the Constitution against certain liabilities and
legal costs incurred by the Director as an offi cer of any
Group Company;
(2) requires the Company to maintain, and pay the premium
for, a D&O Policy in respect of the Director; and
(3) provides the Director with access to particular papers
and documents requested by the Director for a
Permitted Purpose,
both during the time that the Director holds offi ce and
for a seven year period after the Director ceases to be
an offi cer of any Group Company, on the terms and
conditions contained in the Deed.
Indemnifi cation of Auditors -
Ernst and Young
To the extent permitted by law, the Company has agreed
to indemnify its auditors, Ernst and Young, as part of the
terms of its audit engagement agreement against claims
by third parties arising from the audit (for an unspecifi ed
amount). No payment has been made to indemnify Ernst
and Young during or since the fi nancial year.
Proceedings on Behalf of the Company
No person has applied to the Court under section
237 of the Corporations Act 2001 for leave to bring
proceedings on behalf of the Company, or to intervene
in any proceedings to which the Company is a party, for
the purpose of taking responsibility on behalf of the
Company for all or part of those proceedings.
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.
Auditor’s Independence Declaration
The Auditors Independence Declaration as required under
section 307C of the Corporations Act 2001 for the year
ended 30 June 2020 has been received and can be found
in the ‘Auditor’s Independence Declaration’ section of this
Annual Report.
Non-Audit Services
The following non-audit services were provided by
the entity's auditor, Ernst and Young. The Directors
are satisfi ed that the provision of non-audit services is
compatible with the general standard of independence
for auditors imposed by the Corporations Act 2001.
The nature and scope of each type of non-audit service
provided means that auditor independence was not
compromised.
Ernst and Young received or are due to receive the
following amounts for the provision of non-audit services:
2020
$
2019
$
Tax compliance services
20,148
20,148
20,148
20,148
Rounding off
The Company is of a kind referred to in ASIC
Corporations (Rounding in Financial/Directors’ Reports)
Instrument 2016/191 and in accordance with that
Instrument, amounts in the consolidated fi nancial
statements and directors’ report have been rounded off
to the nearest dollar, unless otherwise stated.
Share Options on Issue as at the Date of
the Report
Remuneration Report (Audited)
1. Remuneration Report Overview
Unissued Shares
The unissued ordinary shares of Antisense Therapeutics
Limited under option as at the date of this report were:
Class
Date of Expiry
Exercise
Price
No. Under
Option
ANPAA 22 December 2023
$0.08
10,000,000
ANPAB 22 December 2023
$0.145
35,000,000
This Remuneration Report outlines the Director and
Executive remuneration arrangements of the Company
as required by the Corporations Act 2001 and its
Regulations.
This report details the nature and amount of
remuneration of each Director of Antisense Therapeutics
Limited and all other Key Management Personnel.
ANNUAL REPORT 2020 15
Directors' Report continued
Remuneration Report (Audited) continued
B. REMUNERATION POLICY VERSUS COMPANY
PERFORMANCE
1. Remuneration Report Overview continued
For the purposes of this report, Key Management
Personnel (KMP) are defi ned as those persons having
authority and responsibility for planning, directing and
controlling the major activities of the Company, directly
or indirectly, including any Director (whether Executive
or otherwise) of the Company.
This report details the nature and amount of
remuneration for each Director of Antisense Therapeutics
Limited, and for the other Key Management Personnel.
Name
Directors:
Position
Mr Robert W Moses
Independent Non-Executive
Chairman
Mr Mark Diamond
Managing Director
Dr Graham Mitchell
Independent Non-Executive
Director
Mr William Goolsbee Independent Non-Executive
Director
Dr Gary W Pace
Independent Non-Executive
Director
Other key management personnel:
Dr George Tachas
Ms Nuket Desem
Director, Drug Discovery &
Patents
Director, Clinical & Regulatory
Aff airs
Mr Phillip Hains
Company Secretary
2. Principles Used to Determine the Nature
and Amount of Remuneration
The Company's Remuneration Policy is not directly based
on the Company's earnings. Prior to the year ended
30 June 2020, the Company's earnings had remained
negative since inception due to the nature of the
Company.
Shareholder wealth refl ects this speculative and volatile
market sector. No dividends have ever been declared by
the Company.
The Company continues to focus on the research
and development of its intellectual property portfolio
with the objective of achieving key development
and commercial milestones in order to add further
Shareholder value.
The Company’s performance over the previous fi ve
fi nancial years is as follows:
Net loss fi nancial year 2020
Net loss fi nancial year 2019
Net loss fi nancial year 2018
Net loss fi nancial year 2017
Net loss fi nancial year 2016
$5,908,202
$2,944,499
$2,331,015
$2,754,799
$2,514,443
The Company’s share price over the previous fi ve
fi nancial years is as follows:
30 June 2020
30 June 2019
30 June 2018
30 June 2017
30 June 2016
$0.074
$0.045
$0.025
$0.033
$0.031
A. REMUNERATION POLICY
C. THE REMUNERATION COMMITTEE
The Remuneration Policy ensures that Directors and
Senior Management are appropriately remunerated
having regard to their relevant experience, their
performance, the performance of the Company, industry
norms/standards and the general pay environment
as appropriate. The Remuneration Policy has been
established to enable the Company to attract, motivate
and retain suitably qualifi ed Directors and Senior
Management who will create value for shareholders.
The Remuneration Committee of the Board of Directors
of Antisense Therapeutics Limited is responsible for
overseeing the Remuneration Policy of the Company and
for recommending or making such changes to the policy
as it deems appropriate.
16
2020 ANNUAL REPORT
D. NON-EXECUTIVE DIRECTOR REMUNERATION
Structure
The Non-Executive Directors are responsible for
evaluating the performance of the Managing Director,
who in turn evaluates the performance of the other
Senior Executives. The evaluation process is intended to
assess the Company's business performance, whether
long-term strategic objectives are being achieved and the
achievement of individual performance objectives.
The performance of the Managing Director and Senior
Executives is monitored on an informal basis throughout
the year and a formal evaluation is performed annually.
Fixed Remuneration
Executives' fi xed remuneration comprises salary and
superannuation and is reviewed annually by the Managing
Director, and in turn, the Remuneration Committee
or the full Board. This review takes into account the
Executives' experience, performance in achieving agreed
objectives and market factors as appropriate.
Variable Remuneration STI and LTI
The Company has withheld short term and long term
incentives in recent years. In December 2019, the
Shareholders approved the issue of options to the Board
in recognition of past performance and to align with
shareholders and participate in the benefi ts of growth.
Objective
The Remuneration Policy ensures that Non-Executive
Directors are appropriately remunerated having regard
to their relevant experience, individual performance, the
performance of the Company, industry norms/standards
and the general pay environment as appropriate.
Structure
The Company's Constitution and the ASX Listing Rules
specify that the aggregate remuneration of Non-
Executive Directors shall be determined from time to
time by a General Meeting. An amount (not exceeding
the amount approved at the General Meeting) is
determined by the Board and then divided between
the Non-Executive Directors as agreed. The latest
determination was at the General Meeting held on
13 November 2001 when shareholders approved the
aggregate maximum sum to be paid or provided as
remuneration to the Directors as a whole (other than
the Managing Director and Executive Directors) for their
services as $300,000 per annum.
In the year ended 30 June 2020, the Non-Executive
Directors were remunerated in aggregate $243,741 per
annum, excluding superannuation.
The manner in which the aggregate remuneration
is apportioned amongst Non-Executive Directors is
reviewed periodically.
The Board is responsible for reviewing its own
performance. Board, and Board committee performance,
is monitored on an informal basis throughout the year
with a formal review conducted during the fi nancial year.
No retirement benefi ts are payable other than statutory
superannuation, if applicable.
E. EXECUTIVE DIRECTOR AND EXECUTIVE OFFICER
REMUNERATION
Objective
The Remuneration Policy ensures that Executive
Directors are appropriately remunerated having regard
to their relevant experience, individual performance, the
performance of the Company, industry norms/standards
and the general pay environment as appropriate.
ANNUAL REPORT 2020 17
Directors' Report continued
Remuneration Report (Audited) continued
3. Details of Remuneration
A. DETAILS OF REMUNERATION
The remuneration for each Director and each of the other Key Management Personnel of the Company during the Year
Ended 30 June 2020 was as follows:
Short-term
employee
benefi ts
Cash salary &
fees $
Post-
employment
Benefi ts
Pension & Super
Contribution $
Long-term
Benefi ts
Share-Based
Payments
Long Service
Leave $
Options $
30 June 2020
Directors
Mr Robert W Moses
Mr Mark Diamond
Dr Graham Mitchell
Mr William Goolsbee (1)
Dr Gary W Pace (1)
Other Key Management Personnel
Dr George Tachas
Ms Nuket Desem (3)
Mr Phillip Hains (2)
252,434
176,905
99,000
528,339
1,198,162
5,348
27,450
3,468
-
-
36,266
24,076
14,923
-
38,999
75,265
-
8,289
-
-
-
8,289
7,093
9,728
-
16,822
25,111
537,398
742,373
380,105
380,105
380,105
2,420,086
-
-
-
-
2,420,086
Total $
599,039
1,204,194
420,073
455,579
455,579
3,134,464
283,604
201,556
99,000
584,160
3,718,624
(1) The US Directors are paid USD$50,000 per annum.
(2) Remunerated through The CFO Solution (see Section 5 below and the Company Secretary details for further detail).
(3) Employee is engaged on a part time Contract.
The remuneration for each Director and each of the other Key Management Personnel of the Company during the Year
Ended 30 June 2019 was as follows:
Short-term
employee
benefi ts
Cash salary &
fees $
Post-
employment
Benefi ts
Pension & Super
Contribution $
Long-term
Benefi ts
Share-Based
Payments
Long Service
Leave $
Options $
30 June 2019
Directors
Mr Robert W Moses
Mr Mark Diamond
Dr Graham Mitchell
Mr William Goolsbee (1)
Dr Gary W Pace (1)
Other Key Management Personnel
Dr George Tachas
Ms Nuket Desem
Mr Phillip Hains (2)
233,910
146,626
99,000
479,536
1,103,348
5,348
27,450
3,468
-
-
36,266
21,707
12,804
-
34,511
70,777
-
26,378
-
-
-
26,378
15,836
9,084
-
24,920
51,298
56,293
426,082
36,500
75,474
75,474
669,823
56,293
391,951
36,500
69,534
69,534
623,812
Total $
61,641
445,779
39,968
69,534
69,534
686,456
271,453
168,514
99,000
538,967
1,225,423
-
-
-
-
-
-
-
-
-
-
-
(1) The US Directors are paid USD$50,000 per annum.
(2) Remunerated through The CFO Solution (see Section 5 below and the Company Secretary details above for further detail).
18
2020 ANNUAL REPORT
4. Share-Based Compensation
Shareholdings
The number of shares in the Company held during the fi nancial year by each Director and other Key Management Personnel
of the Company, including their personally related parties, are set out below.
No shares were granted to Directors and Key Management Personal during the period as compensation.
Balance at
start of the
year
Granted as
Compensation
Options
Exercised
Net
Change
Other
Total
Balance held
nominally at
the end of the
reporting period
30 June 2020
Directors
Mr Robert W Moses
Mr Mark Diamond
Dr Graham Mitchell
Mr William Goolsbee
Dr Gary W Pace
7,200,000
3,600,000
347,514
1,014,843
1,236,138
13,398,495
Other Key Management Personnel
Dr George Tachas
Ms Nuket Desem
Mr Phillip Hains (1)
1,536,564
36,666
5,602,528
7,175,758
20,574,253
-
-
-
-
-
-
-
-
-
-
-
1,418,888
381,112
9,000,000
642,772
48,036
84,400
-
-
-
-
-
4,242,772
395,550
1,099,243
1,236,138
2,194,096
381,112
15,973,703
153,808
209,518
1,899,890
7,334
-
44,000
928,471
909,000
7,439,999
1,089,613
1,118,518
9,383,889
3,283,709
1,499,630 25,357,592
-
-
-
-
-
-
-
-
-
(1) Remunerated through The CFO Solution (see Section 5 below and the Company Secretary details for further detail).
Options and Rights
The number of options over ordinary shares in the Company held during the fi nancial year by each Director of Antisense
Therapeutics Limited and other Key Management Personnel of the Company, including their personally related parties,
are set out below:
Balance
at start of
the year
Granted as
Compen-
sation
Options
Exercised
Net
Change
Other
Total
vested at
end of the
year
Total
vested and
exercisable
at the end of
the year
Balance held
nominally at
the end of
the reporting
period
30 June 2020
Directors
Mr Robert W Moses
1,418,888
10,000,000
1,418,888
Mr Mark Diamond
642,772
14,000,000
642,772
Dr Graham Mitchell
Mr William Goolsbee
Dr Gary W Pace
48,036
84,400
7,000,000
7,000,000
-
7,000,000
48,036
84,400
-
-
-
-
-
-
10,000,000
10,000,000
14,000,000
14,000,000
7,000,000
7,000,000
7,000,000
7,000,000
7,000,000
7,000,000
2,194,096 45,000,000 2,194,096
- 45,000,000 45,000,000
Other Key Management Personnel
Dr George Tachas
Ms Nuket Desem
Mr Phillip Hains (1)
153,808
7,334
928,471
1,089,613
-
-
-
-
153,808
7,334
928,471
1,089,613
-
-
-
-
-
-
-
-
-
-
-
-
3,283,709 45,000,000 3,283,709
- 45,000,000
45,000,000
(1) Remunerated through The CFO Solution (see Section 5 below and the Company Secretary details for further detail).
-
-
-
-
-
-
-
-
-
ANNUAL REPORT 2020 19
Directors' Report continued
Remuneration Report (Audited) continued
4. Share-Based Compensation continued
Options
The terms and conditions of each grant of options aff ecting remuneration in the current or a future reporting period are
as follows:
Grant date
Expiry date
Vesting and
exercise date
Exercise
price ($)
No. of
options
Share
price at
grant
date ($)
Expected
volatility
Dividend
yield
Risk-free
interest
rate
Fair value
at grant
date per
option ($)
Vested
%
2019 -12-11 2023 -12-10 2019 -12-23
0.08 10,000,000
0.082
107.49%
0.00% 0.705%
0.0595
2019 -12-11 2023 -12-10 2019 -12-23
0.145 35,000,000
0.082
107.49%
0.00% 0.705%
0.0522
100
100
45,000,000
The share based payment announced to the market during April 2019, and approved by Shareholders as at December 2019
AGM was granted in recognition of prior years’ performance and was fully vested upon issue. The grant of option is in line
with industry standards. This aligns Directors' interest with shareholders and future share value appreciation.
5. Employment Contracts of Key Management Personnel
At the date of this report, the employment conditions of the Managing Director, Mr Mark Diamond and other Key
Management Personnel were formalised in contracts of employment. Mr Mark Diamond is employed under a contract,
which commenced on 31 October 2001. Subsequent to this contract a notice period for Mr Diamond of between two
and four months was negotiated depending upon the party ending the agreement.
Dr George Tachas is employed under a contract which commenced 17 November 2001. A subsequent amendment
to this contract provided a notice period of between one month and two months depending on the party ending the
contract.
Ms Nuket Desem is employed under a contract which commenced 25 July 2018. This contract provides for a notice
period of one month by either party.
Antisense Therapeutics Limited has a contract with The CFO Solution, a specialist public practice, focusing on
providing back offi ce support, fi nancial reporting and compliance systems for listed public companies. Through this
contract the services of Mr Phillip Hains are provided. The contract commenced on 9 November 2006 and can be
terminated with three months’ notice of either party.
6. Additional Information
(A) EQUITY ISSUED AS PART OF REMUNERATION FOR THE YEAR ENDED 30 JUNE 2020
During the fi nancial year ended 30 June 2020, 2,194,096 options have been exercised. 45,000,000 unlisted options
(vested) were granted to Directors.
During the fi nancial year ended 30 June 2020, 1,089,613 options have been exercised. No options were granted to
any of the Other Key Management Personnel.
20
2020 ANNUAL REPORT
(B) LOANS TO DIRECTORS AND OTHER KEY
MANAGEMENT PERSONNEL
There were no loans made to Directors or Other Key
Management Personnel of the Company, including their
personally related parties.
(C) OTHER TRANSACTIONS WITH OTHER KEY
MANAGEMENT PERSONNEL
Transactions between Key Management Personnel are
on normal commercial terms and conditions no more
favourable than those available to other parties unless
otherwise stated.
Signed in accordance with a resolution of the Directors.
Corporate Governance
Antisense Therapeutics Limited and the Board are
committed to achieving and demonstrating the
highest standards of corporate governance. Antisense
Therapeutics Limited has reviewed its corporate
governance practices against the Corporate Governance
Principles and Recommendations (4th edition) published by
the ASX Corporate Governance Council.
The 2020 corporate governance statement is dated as
at 30 June 2020 and refl ects the corporate governance
practices in place throughout the 2020 fi nancial year. The
2020 corporate governance statement was approved by
the board on 26 August 2020. A description of the group's
current corporate governance practices is set out in the
group's corporate governance statement which can be
viewed:
www.antisense.com/investorrelations/corporate-governance
Mr Robert W Moses
Independent Non-Executive Chairman
Mr Mark Diamond
Managing Director and Chief Executive Offi cer
Dated: This day 26th day of August 2020
ANNUAL REPORT 2020 21
Auditor’s Independence Declaration
Ernst & Young
8 Exhibition Street
Melbourne VIC 3000 Australia
GPO Box 67 Melbourne VIC 3001
Tel: +61 3 9288 8000
Fax: +61 3 8650 7777
www.ey.com
Auditor’s Independence Declaration to the Directors of Antisense
Therapeutics Limited
As lead auditor for the audit of the fi nancial report of Antisense Therapeutics Limited for the fi nancial year
ended 30 June 2020, I declare 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.
This declaration is in respect of Antisense Therapeutics Limited and the entities it controlled during the
fi nancial year.
fi nancial year.
Ernst & Young
Ernst & Young
Matt Biernat
Matt Biernat
Partner
26 August 2020
A member fi rm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
22
2020 ANNUAL REPORT
Consolidated Statement of Profi t or Loss and other
Comprehensive Income
For the year ended 30 June 2020
Interest from external parties
Government grants
Other income
Depreciation expenses
Administrative expenses
Occupancy expenses
Patent expenses
Research and development expenses
Foreign exchange gains/(losses)
Finance costs
Share-based payments
Loss before tax
Income tax benefi t
Loss for the year
Other comprehensive income/(loss) for the year, net of tax
Total comprehensive loss for the year, net of tax
Loss per share
Basic loss per share
Diluted loss per share
The accompanying notes form part of these fi nancial statements.
Notes
3
3
3
4
4
4
4
4
4
15
16
5
8
8
2020
$
30,528
30,097
710,936
771,561
2019
$
66,168
10,098
576,690
652,956
(107,601)
(5,377)
(1,953,561)
(1,563,390)
(81,924)
(115,879)
(203,802)
(137,761)
(1,899,319)
(1,760,729)
(934)
(14,319)
(12,536)
(2,420,086)
-
-
(5,908,202)
(2,944,499)
-
-
(5,908,202)
(2,944,499)
-
-
(5,908,202)
(2,944,499)
(1.30)
(1.30)
(0.76)
(0.76)
ANNUAL REPORT 2020 23
Consolidated Statement of Financial Position
As at 30 June 2020
Notes
2020
$
2019
$
9
10
11
12
15
13
14
15
15
14
17
18
4,059,442
2,903,542
689,315
208,425
256,917
606,468
186,221
-
5,214,099
3,696,231
8,649
129,470
138,119
2,299
-
2,299
5,352,218
3,698,530
291,677
394,287
112,575
551,486
328,269
-
798,539
879,755
22,690
-
22,690
-
9,084
9,084
821,229
888,839
4,530,989
2,809,691
69,147,843
63,938,429
2,420,086
-
(67,036,940)
(61,128,738)
4,530,989
2,809,691
ASSETS
Current Assets
Cash and cash equivalents
Trade and other receivables
Prepayments
Other current assets
Non-Current Assets
Plant and equipment
Right-of-use assets
TOTAL ASSETS
LIABILITIES
Current Liabilities
Trade and other payables
Employee benefi t liabilities
Lease liabilities
Non-Current Liabilities
Lease liabilities
Employee benefi t liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Contributed equity
Reserves
Accumulated losses
TOTAL EQUITY
The accompanying notes form part of these fi nancial statements.
24
2020 ANNUAL REPORT
Consolidated Statement of Changes in Equity
For the year ended 30 June 2020
Reserves
(Note 18)
Accumulated
Losses
Total
As at 1 July 2018
Loss for the period
Total comprehensive income
Issue of share capital (Note 17)
Transactions costs on options issues/
capital raising
At 30 June 2018
As at 1 July 2018
Loss for the period
Total comprehensive income
Notes
Contributed
Equity
(Note 17)
$
62,405,510
-
-
1,600,000
(67,081)
63,938,429
63,938,429
-
-
Issue of share capital
17.a
5,494,568
$
-
-
-
-
-
-
-
-
-
-
$
$
(58,184,239)
4,221,271
(2,944,499)
(2,944,499)
(2,944,499)
(2,944,499)
-
-
1,600,000
(67,081)
(61,128,738)
2,809,691
(61,128,738)
2,809,691
(5,908,202)
(5,908,202)
(5,908,202)
(5,908,202)
-
-
-
5,494,568
2,420,086
(285,154)
Share-based payments (Note 16)
Transactions costs on options issues/
capital raising
-
2,420,086
17.a
(285,154)
-
At 30 June 2020
69,147,843
2,420,086 (67,036,940)
4,530,989
The accompanying notes form part of these fi nancial statements.
ANNUAL REPORT 2020 25
Consolidated Statement of Cash Flows
For the year ended 30 June 2020
OPERATING ACTIVITIES
Payments to suppliers and employees
Interest paid
Interest received
R&D tax concession refund
Government Grant
Other Income
Notes
2020
$
2019
$
(4,637,682)
(3,288,028)
(12,536)
33,523
-
74,692
568,640
284,900
30,097
72,600
-
-
Net cash fl ows used in operating activities
21
(3,945,358)
(2,928,436)
INVESTING ACTIVITIES
Purchase of property, plant and equipment
Term Deposits (Over 90+ days)
Net cash fl ows (used in)/from investing activities
FINANCING ACTIVITIES
Issue of share capital
Transaction costs on options issues/capital raising
Payment of fi nance lease liabilities
Net cash fl ows from fi nancing activities
(10,262)
-
-
(2,400,000)
(10,262)
(2,400,000)
5,494,568
1,600,000
(285,154)
(67,081)
(97,894)
-
5,111,520
1,532,919
Net decrease in cash and cash equivalents
Cash and cash equivalents at 1 July
Cash and cash equivalents at 30 June
1,155,900
1,004,483
2,903,542
1,899,059
4,059,442
2,903,542
9
9
The accompanying notes form part of these fi nancial statements.
26
2020 ANNUAL REPORT
Notes to the Financial Statements
For the year ended 30 June 2020
Note 1:
Signifi cant Accounting Policies
1.a Corporate Information
The fi nancial report of Antisense Therapeutics Limited
and its subsidiaries (the ‘Company’) for the Year Ended
30 June 2020 was authorised for issue in accordance
with a resolution of the Directors on 26th August 2020.
The fi nancial report is for the Company consisting of
Antisense Therapeutics Limited and its subsidiaries.
Antisense Therapeutics Limited is a listed public
company limited by shares incorporated and domiciled
in Australia whose shares are publicly traded on the
Australian Securities Exchange. The Company also has
a Level 1 American Depository Receipt (ADR) program
traded on the US over-the-counter market.
The principal activity of the Company is the research and
development of novel antisense pharmaceuticals.
1.b Basis of Preparation
The fi nancial report is a general purpose fi nancial
report, which has been prepared in accordance with
the requirements of the Corporations Act 2001 and
Australian Accounting Standards, required for a for-profi t
entity.
The fi nancial report has been prepared on an accruals
basis and is based on historical costs. These consolidated
fi nancial statements are presented in Australian dollar
($), which is the Company’s functional and presentation
currency. The Company is of a kind referred to in
ASIC Corporations (Rounding in Financial/Directors’
Reports) Instrument 2016/191 and in accordance with
that instrument, amounts in the consolidated fi nancial
statements and directors’ report have been rounded off
to the nearest dollar, unless otherwise stated.
Management is required to make judgements, estimates
and assumptions about carrying values of assets and
liabilities that are not readily apparent from other sources.
The estimates and associated assumptions are based on
historical experience and various other factors that are
believed to be reasonable under the circumstance, the
results of which form the basis of making the judgements.
Actual results may diff er from these estimates. The
estimates and underlying assumptions are reviewed on
an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised
if the revision aff ects only that period, or in the period of
the revision and future periods if the revision aff ects both
current and future periods.
Judgements made by management in the application
of Australian Accounting Standards that have signifi cant
eff ects on the fi nancial statements and estimates with a
signifi cant risk of material adjustments in the next year
are disclosed, where applicable, in the relevant notes to
the fi nancial statements.
Accounting policies are selected and applied in a manner
which ensures that the resulting fi nancial information
satisfi es the concepts of relevance and reliability,
thereby ensuring that the substance of the underlying
transactions or other events is reported.
Going Concern
The Directors have prepared the 2020 fi nancial
report on a going concern basis, which contemplates
continuity of normal business activities and the
realisation of assets and the settlement of liabilities in
the ordinary course of business.
The Company incurred a loss from ordinary activities
of $5,908,202 during the year ended 30 June 2020
(including a non-cash fully amortised Option issue "Share
Based Payment" of $2,420,086) ($2,944,499 to 30
June 2019) and incurred an operating cash outfl ow of
$3,945,348 ($2,928,436 year to 30 June 2019). The cash
balance at 30 June 2020 is $4,059,442 ($2,903,542 as at
30 June 2019).
As at 30 June 2020, the Company had a net assets
position of $4,530,989 (June 2019: $2,809,691) and
current assets exceed current liabilities by $4,415,560
(June 2019: current assets exceed current liabilities by
$2,816,476). The Company anticipates receiving an R&D
Tax incentive refund later in this calendar year in relation
to R&D expenditure for the year ending 30 June 2020
(including that associated with the ongoing clinical trial of
ATL1102 in DMD).
The Company will need to access additional capital within
the next 12 months for further clinical development of its
various development projects and to continue to pay its
debts as and when they fall due.
After consideration of the available facts the Directors
have concluded that the going concern basis is
appropriate given the Company’s track record of raising
capital and the status of ongoing discussions with various
parties. Accordingly the fi nancial statements do not
include adjustments relating to the recoverability and
classifi cation of recorded asset amounts, or the amounts
and classifi cation of liabilities that might be necessary
should the Company not continue as a going concern.
ANNUAL REPORT 2020 27
Notes to the Financial Statements
For the year ended 30 June 2020
Note 1:
Signifi cant Accounting Policies continued
1.c Statement of Compliance
The fi nancial report complies with Australian Accounting Standards as issued by the Australian Accounting Standards
Board and International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board.
1.d New, Revised or Amending Accounting Standards and Interpretations Adopted
The following new, revised or amended Accounting Standards have been adopted for the year ended 30 June 2020:
(i) AASB 16 Leases
The Company has adopted AASB 16 using the modifi ed retrospective method from 1 July 2019 and has not restated
comparatives for the 2019 reporting period, as required under the specifi c transitional provisions in the standard.
The standard replaces AASB 117 Leases and related interpretations and for lessees, eliminates the classifi cations of
operating leases and fi nance leases. Except for short-term leases and leases of low-value assets, right-of-use assets
and corresponding lease liabilities are recognised in the statement of fi nancial position. Straight-line operating lease
expense recognition is replaced with a depreciation charge for the right-of-use assets and an interest expense on the
recognised lease liabilities (included in fi nance costs). In the earlier periods of the lease, the expenses associated with
the lease under AASB 16 will be higher when compared to lease expenses under AASB 117. For classifi cation within
the statement of cash fl ows, the interest portion is disclosed in operating activities and the principal portion of the
lease payments are separately disclosed in fi nancing activities.
(ii) Impact of adoption (AASB 16 Leases)
Practical expedients applied
In applying AASB16 for the fi rst time, at the date of transition, the Company applied the available practical expedients
wherein it:
• Relied on historic assessments of whether leases were onerous instead of performing impairment reviews of
right-of-use assets immediately prior to the date of initial application of AASB16;
• Excluded initial direct costs from the measurement of right-of-use assets at the date of initial application
At the date of transition, the right-of-use assets for operating leases were recognised based on the carrying amount
as if the standard had always been applied, apart from the use of the incremental borrowing rate at the date of initial
application. Lease liabilities are measured at the present value of the remaining lease payments, discounted using our
incremental borrowing rate as at 1 July 2019. The impact of adoption as at 1 July 2019 was as follows:
Operating lease commitments as at 01 July 2019 (AASB117)
Operating lease commitments discount based on the weighted average incremental borrowing
rate of 6.97%
Lease liability recognised as at 1 July 2019
Of which are:
Current lease liabilities
Non-current lease liabilities
Right-of-use assets increased by
Lease liabilities increased by
The net impact on retained earnings on 1 July 2019 was
28
2020 ANNUAL REPORT
1 July 2019
$
$249,480
$233,159
$233,159
$110,430
$122,729
$233,159
$233,159
-
(iii) Right-of-use assets
A right-of-use asset is recognised at the commencement
date of a lease. The right-of-use asset is measured at
cost, which comprises the initial amount of the lease
liability, adjusted for, as applicable, any lease payments
made at or before the commencement date net of any
lease incentives received, any initial direct costs incurred,
and, except where included in the cost of inventories, an
estimate of costs expected to be incurred for dismantling
and removing the underlying asset, and restoring the site
or asset.
Right-of-use assets are depreciated on a straight-
line basis over the unexpired period of the lease or
the estimated useful life of the asset, whichever is
the shorter. Where the Company expects to obtain
ownership of the leased asset at the end of the lease
term, the depreciation is over its estimated useful life.
Right-of use assets are subject to impairment or adjusted
for any remeasurement of lease liabilities.
The Company has elected not to recognise a right-of-
use asset and corresponding lease liability for short-term
leases with terms of 12 months or less and leases of
low-value assets. Lease payments on these assets are
expensed to profi t or loss as incurred.
(iv) Lease Liabilities
A lease liability is recognised at the commencement
date of a lease. The lease liability is initially recognised
at the present value of the lease payments to be made
over the term of the lease, discounted using the interest
rate implicit in the lease or, if that rate cannot be readily
determined, the Company's incremental borrowing rate.
Lease payments comprise of fi xed payments less any
lease incentives receivable, variable lease payments
that depend on an index or a rate, amounts expected
to be paid under residual value guarantees, exercise
price of a purchase option when the exercise of the
option is reasonably certain to occur, and any anticipated
termination penalties. The variable lease payments that
do not depend on an index or a rate are expensed in the
period in which they are incurred.
After the commencement date, the amount of lease
liabilities is increased to refl ect the accretion of interest
and reduced for the lease payments made. The carrying
amounts are remeasured if there is a change in the
following: future lease payments arising from a change
in an index or a rate used; residual guarantee; lease term;
certainty of a purchase option and termination penalties.
When a lease liability is remeasured, an adjustment is
made to the corresponding right-of use asset, or to profi t
or loss if the carrying amount of the right-of-use asset is
fully written down.
New Standard and Interpretations in issue not yet
adopted
Any new or amended Accounting Standards or
Interpretations that are not yet mandatory have not been
early adopted.
1.e Principles of Consolidation
The consolidated fi nancial statements incorporate the
assets and liabilities of all subsidiaries of Antisense
Therapeutics Ltd as at 30 June 2020 and the results of
all subsidiaries for the year then ended.
Subsidiaries are all those entities where the Company
is exposed, or has rights, to variable returns from the
Company’s involvement with the entity and has the ability
to aff ect those returns through the Company’s power to
direct the activities of the entity.The existence and eff ect
of potential voting rights that are currently exercisable or
convertible are considered when assessing whether the
Company controls another entity.
Subsidiaries are fully consolidated from the date on
which control is transferred to the Company. They are
de-consolidated from the date that control ceases.
In preparing the consolidated fi nancial statements, all
intercompany balances and transactions, and unrealised
profi ts/losses arising within the consolidated entity are
eliminated in full. Unrealised losses are also eliminated
unless the transaction provides evidence of the
impairment of the asset transferred. Investments in
subsidiaries are accounted for at cost in the separate
fi nancial statements of Antisense Therapeutics Limited.
1.f Summary of Signifi cant Accounting
Policies
a) Government Grants
Government grants are recognised where there is
reasonable assurance that the grant will be received
and all attached conditions will be complied with.
When the grant relates to an expense item, it is
recognised as income on a systematic basis over the
periods that the related costs, for which it is intended
to compensate, are expensed. When the grant relates
to an asset, it is recognised as income in equal amounts
over the expected useful life of the related asset.
ANNUAL REPORT 2020 29
Notes to the Financial Statements
For the year ended 30 June 2020
Note 1:
Signifi cant Accounting Policies continued
1.f Summary of Signifi cant Accounting
Policies continued
a) Government Grants continued
The Company currently receives grant funding in
the form of the R&D Tax Incentive together with the
Innovation Connections Grant. The grant funding is
to facilitate research projects in collaboration with
Publicly Funded Research Organisation to develop new
ideas to commercial potential.
b) Share-based payments
Employees (including senior executives) of the
Company receive remuneration in the form of share-
based payments, whereby employees render services
as consideration for equity instruments (equity-
settled transactions).
The value attributed to share options issued is an
estimate calculated using the Binomial pricing model.
The choice of models and the resultant share option
value require assumptions including share price
volatility and the price of the shares. The value of
share options is refl ected in profi t or loss over the
vesting period.
c) Borrowing Costs
Borrowing costs are expensed using the eff ective
interest method.
d) Cash and Cash Equivalents
Cash and short-term deposits in the Statement of
Financial Position comprise cash at bank and in hand
and short-term deposits with an original maturity of
three months or less.
For the purposes of the Cash Flow Statement,
cash and cash equivalents consist of cash and cash
equivalents as defi ned above.
e) Foreign Currencies
The functional currency of the Company is based
on the primary economic environment in which the
Company operates. The functional currency of the
Company is Australian dollars.
Transactions in foreign currencies are converted to
local currency at the rate of exchange at the date of
the transaction.
30
2020 ANNUAL REPORT
Amounts payable to and by the Company
outstanding at reporting date and denominated
in foreign currencies have been converted to local
currency using rates prevailing at the end of the
fi nancial year.
All exchange diff erences are taken to profi t or loss.
f)
Income Taxes
Deferred income tax is provided on temporary
diff erences at the balance date between the tax
bases of assets and liabilities and their carrying
amounts for fi nancial reporting purposes.
Deferred income tax liabilities are recognised for
all taxable temporary diff erences except where the
deferred income tax liability arises from the initial
recognition of an asset or liability in a transaction
that is not a business combination and, at the time of
the transaction, aff ects neither the accounting loss
nor taxable profi t or loss.
Deferred income tax assets are recognised for all
deductible temporary diff erences, carry-forward
of unused tax assets and unused tax losses, to the
extent that it is probable that taxable profi t will be
available against which the deductible temporary
diff erences, and the carry-forward of unused tax
assets and unused tax losses can be utilised except
where the deferred income tax asset relating to
the deductible temporary diff erences arises from
the initial recognition of an asset or liability in a
transaction that is not a business combination
and, at the time of transaction, aff ects neither the
accounting loss nor taxable profi t or loss.
The carrying amount of deferred income tax assets
is reviewed at each balance date and reduced to the
extent that it is no longer probable that suffi cient
taxable profi t will be available to allow all or part of
the deferred income tax asset to be utilised.
Deferred income tax assets and liabilities are
measured at the tax rates that are expected to
apply to the year when the asset is realised or the
liability is settled, based on tax rates (and tax laws)
that have been enacted or substantively enacted at
balance date.
Deferred Tax assets are recognised for unused tax
losses to the extent that it is probable that taxable
profi t will be available against which the losses can
be utilised. Signifi cant management judgement is
required to determine the amount of deferred tax
assets that can be recognised, based upon the likely
timing and the level of future taxable profi ts together
with future tax planning strategies.
Given the history of losses, there is limited support
for the recognition of these losses as deferred tax
assets. On this basis, Antisense Therapeutics Limited
has determined it cannot recognise deferred tax
assets on the tax losses carried forward. Further,
on this basis, deferred tax assets have not been
recognised related to temporary diff erences.
Income taxes relating to items recognised directly in
equity are recognised in equity and not in profi t or loss.
g) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of
the amount of GST, except:
• where the GST incurred on a purchase of goods
and services is not recoverable from the taxation
authority, in which case the GST is recognised as
part of the cost of acquisition of the asset or as
part of the expense item as applicable; and
• receivables and payables are stated with the
amount of GST included.
Cash fl ows arising from operating activities are
included in the Cash Flow Statement on a gross basis
(i.e. including GST) and the GST component of cash
fl ows arising from investing and fi nancing activities,
which is recoverable from, or payable to, the taxation
authority are classifi ed as operating cash fl ows.
Commitments and contingencies are disclosed net
of the amount of GST recoverable from, or payable
to, the taxation authority. The net amount of GST
recoverable from or payable to, the taxation authority
is included as part of the receivables or payables in
the Statement of Financial Position.
h) Plant and Equipment
Plant and equipment are measured at cost less
any accumulated depreciation and any impairment
losses. Such assets are depreciated over their useful
economic lives as follows:
feasibility of completing the intangible asset so that it
will be available for use or sale, its intention to complete
and its ability to use or sell the asset, how the asset will
generate future economic benefi ts, the availability of
resources to complete the development and the ability
to measure reliably the expenditure attributable to the
intangible asset during its development.
Following initial recognition of the development
expenditure, the cost model is applied requiring the
asset to be carried at cost less any accumulated
amortisation and accumulated impairment losses.
Any expenditure so capitalised is amortised over the
period of expected benefi ts from the related project.
The carrying value of an intangible asset arising from
development expenditure is tested for impairment
annually when the asset is not available for use, or
more frequently when an indication of impairment
arises during the reporting period.
j)
Impairment of Non-Financial Assets
The carrying values of non-fi nancial assets are tested
for impairment whenever events or changes in
circumstances indicate that the carrying amount may
not be recoverable.
An impairment loss is recognised for the amount
by which the asset's carrying amount exceeds its
recoverable amount. Recoverable amount is the
higher of an asset's fair value less costs of disposal
and value in use. For the purposes of assessing
impairment, assets are grouped at the lowest levels
for which there are separately identifi able cash infl ows
that are largely independent of the cash infl ows from
other assets or groups of assets (cash-generating
units). Non-fi nancial assets that suff er an impairment
are tested for possible reversal of the impairment
whenever events or changes in circumstances indicate
that the impairment may have reversed.
An impairment exists when the carrying value of an
asset exceeds its estimated recoverable amount. The
asset is then written down to its recoverable amount.
Life
Method
k) Trade and Other Payables
Equipment
3-5 years Straight line
i) Research and Development Costs
Research costs are expensed as incurred.
An intangible asset arising from development
expenditure on an internal project is recognised only
when the Company can demonstrate the technical
Trade and other payables are carried at amortised
cost and represent liabilities for goods and services
provided to the Company prior to the end of the
fi nancial year that are unpaid and arise when the
Company becomes obliged to make future payments
in respect of the purchase of these goods and services.
Licensing fees are recognised as an expense when it is
confi rmed that they are payable by the Company.
ANNUAL REPORT 2020 31
Notes to the Financial Statements
For the year ended 30 June 2020
o) Parent Information
The fi nancial information for the parent entity,
Antisense Therapeutics Limited, disclosed in Note
2 has been prepared on the same basis as the
consolidated statements with the exception of
investments in subsidiaries which are carried at costs
less any impairment.
Note 1:
Signifi cant Accounting Policies continued
l) Employee Benefi ts
Wages, salaries and annual leave
Liabilities for wages and salaries, including non-
monetary benefi ts and annual leave payments
expected to be settled within 12 months of the
reporting date are recognised in other provisions in
respect of employees' service up to the reporting
date. They are measured at the amounts expected to
be paid when the liabilities are settled.
Long Service Leave
The liability for long service leave is recognised for
employee benefi ts and measured as the present
value of expected future payments to be made
in respect of services provided by employees up
to the reporting date. Consideration is given to
expected future wage and salary levels, experience
of employee departures, and periods of service.
Expected future payments are discounted using
market yields at the reporting date on national
corporate bonds with terms to maturity and
currencies that match, as closely as possible, to the
estimated future cash outfl ows.
m) Contributed Equity
Ordinary shares are classifi ed as equity. Any
transaction costs arising on the issue of ordinary
shares are recognised directly in equity as a reduction
(net of tax) of the share proceeds received.
n) Earnings Per Share
Basic earnings per share is calculated as profi t or loss
attributable to equity holders of the Parent, divided
by the weighted average number of ordinary shares,
adjusted for any bonus element.
Diluted earnings per share is calculated as profi t or
loss attributable to equity holders of the Parent,
adjusted for:
• the after tax eff ect of dividends and interest
associated with dilutive potential ordinary shares
that have been recognised as expenses;
• other non-discretionary changes in revenues or
expenses during the period that would result from
the dilution of potential ordinary shares; divided
by the weighted average number of ordinary
shares and dilutive potential ordinary shares,
adjusted for any bonus element.
32
2020 ANNUAL REPORT
Note 2: Information Relating to the Antisense Therapeutics Limited (the Parent)
ASSETS
Current assets
Non-current assets
Total assets
LIABILITIES
Current liabilities
Non-current liabilities
Total liabilities
EQUITY
Contributed equity
Reserves
Retained earnings
Total equity
Net loss for the year
Total comprehensive loss of the Parent entity
Note 3: Revenue and Other Income
REVENUE
Government grants
Interest from external parties
Total revenue
OTHER INCOME
Research and development tax concession
Other Income
Total other income
Total revenue & other income
2020
$
2019
$
5,214,099
3,696,231
138,119
2,299
5,352,218
3,698,530
798,539
22,690
879,755
9,084
(821,229)
(888,839)
69,147,843
63,938,429
2,420,086
-
(67,036,940)
(61,128,738)
4,530,989
2,809,691
(5,908,202)
(2,944,499)
(5,908,202)
(2,944,499)
2020
$
30,097
30,528
60,625
638,336
72,600
710,936
771,561
2019
$
10,098
66,168
76,266
576,690
-
576,690
652,956
The Company recognised $10,097 Innovation Connections Grant (2019: $10,098) and $20,000 Entrepreneurs
Programme under Government Grants. These are key Australian Government fi nancial assistance programs.
COVID-19 government assistance $72,600 is included in other income. This includes $50,000 "Cashfl ow boost for
employers" measure announced as part of the Australian Government's economic stimulus package of March 2020,
together with $22,600 payroll tax waived credit and deferrals. This is the coronavirus payroll tax relief provided by the
Victorian State Revenue Offi ce for the 2019-20 fi nancial year.
ANNUAL REPORT 2020 33
Notes to the Financial Statements
For the year ended 30 June 2020
Note 4: Expenses
Administrative Expenses
Compliance expenses
Offi ce expenses
Corporate employee expenses
Business development expenses
Total administrative expenses
Occupancy Expenses
Rent
Other expenses
Total occupancy expenses
Research and Development Expenses
ATL 1102
ATL 1103
Research & Development
2020
$
364,863
45,409
914,806
628,483
2019
$
251,856
43,830
894,931
372,773
1,953,561
1,563,390
-
81,924
81,924
1,310,154
103,394
485,771
106,710
9,169
115,879
774,219
316,470
670,040
Total Research and Development Expenses
1,899,319
1,760,729
Patent expenses
Depreciation expenses
Foreign exchange gains/(losses)
Share-based payments
Right-of-use leases interest expense
Total other expenses
Total expenses
Note 5: Income Tax
Accounting loss before income tax
At Australia's statutory income tax rate of 27.5% (2018: 27.5%)
Research and development tax concession
Non-assessable grant income
Section 40-880 deductions
Entertainment
Derecognition of deferred tax asset
Income tax expense reported in the statement of profi t or loss
Income tax expense/(benefi t) attributable to the Company
34
2020 ANNUAL REPORT
203,802
107,601
934
2,420,086
12,536
137,761
5,377
14,319
-
-
2,744,959
157,457
6,679,763
3,597,455
2020
$
2019
$
(5,908,202)
(2,944,499)
(1,624,756)
(809,737)
515,591
494,400
(175,542)
(158,590)
(40,628)
(36,984)
219
1,192
(1,325,116)
(509,719)
-
-
-
-
Deferred Tax
Deferred tax assets and liabilities:
Accruals
Provision for annual leave & long service leave
Other
Net deferred tax asset/(liability) not recognised
Derecognition of deferred tax asset
Net deferred tax asset/(liability)
Tax Losses
2020
$
47,107
108,429
(57,165)
98,371
(98,371)
-
2019
$
-
24,505
(3,468)
21,037
(21,037)
-
Antisense Therapeutics Limited has unconfi rmed, unrecouped tax losses in Australia which have not been brought to
account. The ability to be able to recognise a deferred tax asset in respect of these tax losses will be dependent upon
the probability that future taxable profi t will be available against which the unused tax losses can be utilised and the
conditions for deductibility imposed by Australian tax authorities will be complied with.
Unused tax losses for which no deferred tax asset has been recognised
51,513,991
46,695,391
51,513,991
46,695,391
Note 6: Key Management Personnel Compensation
The aggregate compensation made to Directors and other Key Management Personnel of the Company is set out below:
2020
$
2019
$
Short-term employee benefi ts
Share-based payments
Post-employment benefi ts
Long-term benefi ts
2020
$
2019
$
1,198,162
1,103,348
2,420,086
75,265
25,111
-
70,777
51,298
3,718,624
1,225,423
For more information on Key Management Personnel Compensation, please refer to the Remuneration Report
contained under Directors’ Report.
ANNUAL REPORT 2020 35
Notes to the Financial Statements
For the year ended 30 June 2020
Note 7: Auditors’ Remuneration
The auditor of Antisense Therapeutics Limited is Ernst and Young.
Amounts received or due and receivable by Ernst and Young for:
Fees for auditing the statutory financial report of the parent covering the group
and auditing the statutory financial reports of any controlled entities
Fees for assurance services that are required by legislation to be provided by the
auditor
Fees for other assurance and agreed-upon-procedures services under other
legislation or contractual arrangements where there is discretion as to whether
the service is provided by the auditor or another fi rm
Fees for other services:
Tax compliance services
2020
$
2019
$
76,553
58,240
-
-
-
-
20,148
96,701
20,148
78,388
Note 8: Earnings per share (EPS)
Basic EPS is calculated by dividing profi t for the year attributable to ordinary equity holders of the Parent by the
weighted average number of ordinary shares outstanding during the year.
Diluted EPS is calculated by dividing the net profi t attributable to ordinary equity holders of the Parent by the
weighted average number of ordinary shares outstanding during the year plus the weighted average number of
ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares.
The following table refl ects the income and share data used in the basic and diluted EPS computations:
Net profit/(earnings/(losses)) used in the calculation of basic and diluted earnings/
(losses) per share
2020
$
2019
$
(5,908,202)
(2,944,449)
Weighted average number of ordinary shares for basic EPS
455,833,634
386,097,675
Weighted average number of ordinary shares adjusted for the eff ect of dilution
455,833,634
386,097,675
There have been no other conversions to, call of, or subscriptions for ordinary shares, or issues of potential ordinary
shares since the reporting date and before the completion of this fi nancial report.
As at 30 June 20, the Company had 45,000,000 unlisted options outstanding, which are convertible into 10,000,000
ordinary shares at $0.08 exercise price, at the election of the option holder and 35,000,000 ordinary shares at $0.145
exercise price, at the election of the option holder . Upon conversion, these shares could potentially dilute basic
earnings per share in the future, but were not included in the calculation of diluted earnings per share because they
are anti-dilutive for the current period.
36
2020 ANNUAL REPORT
Note 9: Cash and Cash Equivalents
Cash at bank and on hand
Short-term deposits
2020
$
2019
$
359,442
403,542
3,700,000
2,500,000
4,059,442
2,903,542
The interest rate for cash at bank as at 30 June 2020 was 0.01%p.a. (2019: 0.10% p.a.). The interest rate on the term
deposit as at 30 June 2020 was 0.30% p.a. (2019: 1.95% p.a.) for 30 days. The term deposit has a maturity period of
30 days. The At Call Deposit interest rate was as at 30 June 2020 was 0.10% p.a (2019: N/A).
Note 10: Trade and Other Receivables
Trade receivables
Research and development tax concession receivable
Interest receivable
Other receivables
Note 11: Other Current Assets
Other current assets
2020
$
-
643,837
381
45,097
2019
$
834
574,141
3,376
28,117
689,315
606,468
2020
$
256,917
256,917
2019
$
-
-
The Company entered into an manufacturing agreement with Avecia Inc in February 2020. The terms of the
agreement included an immediate upfront project milestone payment for Project Acceptance, with further milestone
payments due as identifi ed milestones within the contract are met.
ANNUAL REPORT 2020 37
Notes to the Financial Statements
For the year ended 30 June 2020
Note 12: Property, Plant and Equipment
Cost
At 1 July 2018
At 30 June 2019
At 1 July 2019
Additions
At 30 June 2020
Depreciation and impairment
At 1 July 2018
Depreciation charge for the year
At 30 June 2019
At 1 July 2019
Depreciation charge for the year
At 30 June 2020
Gross value
Accumulated depreciation
Note 13: Trade and Other Payables
Trade payables
Accrued expenses
Other payables
Payroll tax and other statutory liabilities
38
2020 ANNUAL REPORT
Property, plant & equipment
$
191,645
191,645
191,645
10,262
201,907
(183,970)
(5,377)
(189,347)
(189,347)
(3,912)
(193,259)
2020
$
2019
$
201,907
191,645
(193,258)
(189,346)
8,649
2,299
2020
$
107,866
148,480
4,577
30,754
2019
$
227,130
319,779
4,577
-
291,677
551,486
Note 14: Employee Benefi t Liabilities
Current
Current employee provisions
Non-current
Long service leave
Note 15: Leases
2020
$
2019
$
394,287
328,269
394,287
328,269
-
-
9,084
9,084
At 01 July 2019 the Company held a lease which expired during the fi rst half of the fi nancial year. In October 2019, the
Company executed and extended its commercial lease on the offi ce in Toorak for a further two-year term.
(i) Amounts recognised in the balance sheet.
Cost
Balance as at 1 July 2019
Depreciation (July 2019 to June 2020)
Balance as at 30 June 2020
Lease Liabilities
Balance as at 1 July 2019
Principal liability payments
Balance as at 30 June 2020
(ii) Amounts recognised in the statement of profi t or loss.
Outgoings (back charged Land Tax)
Depreciation charge on right-of-use asset
Interest expense (included in finance costs)
30 June 2020
$
233,159
(103,689)
129,470
233,159
(97,894)
135,265
30 June 2020
$
75,000
103,689
12,536
191,225
The Landlord identifi ed an oversight not charging Land Tax as outgoings for a number of prior years. The Company
negotiated an agreed settlement of $75,000 which has been recognised under occupancy expenses.
The total cash outfl ow for leases as at 30 June 2020 was $185,430.
ANNUAL REPORT 2020 39
Notes to the Financial Statements
For the year ended 30 June 2020
Note 15: Leases continued
(iii) The Company's leasing activities and how these are accounted for
The Company's lease agreement does not impose any convenants, but leased assets may not be used as security for
borrowing purposes.
Leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leased asset is
available for use by the Company. Each lease payment is allocated between the liability and fi nance cost. The fi nance
cost is charged to profi t or loss over the lease period so as to produce a constant periodic rate of interest on the
remaining balance of the liability for each period. The right-of-use asset is depreciated over the shorter of the asset's
useful life and the lease term on a straight-line basis.
The Company has the following leased asset:
• Principal place of business at 6-8 Wallace Avenue, Toorak, Victoria. The lease is for a term of two years, expiring
30 September 2021 with no further option to extend.
Right-of-use - Leased premises
Less: Accumulated depreciation
30 June 2020
$
233,159
(103,689)
129,470
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net
present value of the following lease payments:
• fi xed payments (including in-substance fi xed payments),less any lease incentives receivable
• amounts expected to be payable by the lessee under residual value guarantees
• the exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and
• payments of penalties for terminating the lease,if the lease term refl ects the lessee exercising that option.
The lease payments are discounted using the company’s incremental borrowing rate if the interest rate implicit in the
lease cannot be readily determined. Right-of-use assets are measured at cost comprising the following:
• the amount of the initial measurement of lease liability
• any lease payments made at or before the commencement date, less any lease incentives received
• any initial direct costs,and
• restoration costs.
Payments associated with short-term leases and leases of low-value assets are recognised on a straight-line basis as
an expense in profi t or loss.Short-term leases are leases with a lease term of 12 months or less.
Note 16: Share-based payments
The value attributed to share options and remuneration shares issued is an estimate calculated using an appropriate
option-pricing model. The choice of models and the resultant option value require assumptions to be made in relation
volatility of the price of the underlying shares.
The 45,000,000 fully vested equity settled options were issued to Directors as per the ASX announcement on 26
April 2019 and subsequent shareholder approval obtained at the AGM on 11 December 2019. The exercise price for 10
million options is 8 cents. The remaining 35 million options have an exercise price of 14.5 cents.
40
2020 ANNUAL REPORT
The assessed fair value of options at grant date was determined using the Binomial option pricing model that takes
into account the exercise price, term of the option (48 months), security price at grant date and expected price
volatility of the underlying security (107.49%), the expected dividend yield (0.00%), and the risk-free interest rate
(0.705%) for the term of the security. The volatility was based on analysing the Company's historical trading data for
the last 12 months up to and including the valuation date.
Valuation of the options was completed by Independent Valuers; with the Company recognising the $2,420,086 of
share-based payment expense in the statement of profi t of loss due to immediate vesting.
The Option-value model inputs during the full-year 30 June 2020 included:
Grant
date
Expiry
date
Exercise
price ($)
No. of
options
Share
price at
grant
date ($)
Expected
volatility
Dividend
yield
Risk- free
interest
rate
2019-12-11
2023-12-10
0.08 10,000,000
2019-12-11
2023-12-10
0.145 35,000,000
0.082
0.082
107.49%
107.49%
0.00%
0.00%
0.705%
0.705%
Fair value
at grant
date per
option ($)
0.0595
0.0522
45,000,000
Note 17: Contributed Equity
Ordinary fully paid shares
Option Value over ordinary shares
Note 17(a): Ordinary Shares
Reconciliation of share movement in the period:
Note
17(a)
17(b)
2020
$
2019
$
69,147,843
62,698,317
-
1,240,112
69,147,843
63,938,429
30 June 2020
30 June 2019
No.
$
No.
$
At the beginning of the period
420,103,487
62,698,317
371,618,638
61,165,398
Transfer of option value over ordinary shares
-
1,240,112
-
-
Shares issued during the year
68,681,794
5,494,568
48,484,849
1,600,000
Transaction costs relating to share issues
-
(285,154)
-
(67,081)
488,785,281
69,147,843
420,103,487
62,698,317
ANNUAL REPORT 2020 41
Notes to the Financial Statements
For the year ended 30 June 2020
Note 17(a): Ordinary Shares continued
Details of movement in shares:
2020
Details
13 March 2019
Share Placement
04 Oct 2019
Exercise of Listed Options (ANPOB)
29 Oct 2019
Exercise of Listed Options (ANPOB)
12 Nov 2019
Exercise of Listed Options (ANPOB)
25 Nov 2019
Exercise of Listed Options (ANPOB)
04 Dec2019
Exercise of Listed Options (ANPOB)
16 Dec 2019
Exercise of Listed Options (ANPOB)
18 Dec 2019
Exercise of Listed Options (ANPOB)
Numbers
420,103,487
43,154
106,785
1,163,095
842,798
1,383,288
7,473,482
11,506,864
Issue Price
$
-
0.08
0.08
0.08
0.08
0.08
0.08
0.08
AUD
$
62,698,317
3,452
8,543
93,048
67,424
110,663
597,902
920,549
19 Dec 2019
Transfer value from Option Reserve
-
-
1,240,112
19 Dec 2019
Exercise of Listed Options (ANPOB)
23 Dec 2019
Exercise of Listed Options (ANPOB)
03 Jan 2020
Exercise of Listed Options (ANPOB)
03 Jan 2020
Less Capital Raising Costs
16,804,571
6,060,748
23,297,009
488,785,281
0.08
0.08
0.08
1,344,366
484,860
1,863,791
(285,154)
69,147,873
2019
Details
Numbers
Issue Price
$
AUD
$
13 March 2019
Share Placement
48,484,849
0.0333
1,600,000
48,484,849
1,600,000
Ordinary shares participate in dividends and the proceeds on winding up of the Company in proportion to the number
of shares held. At shareholder meetings each ordinary share is entitled to one vote when a poll is called, otherwise
each shareholder has one vote on a show of hands. The ordinary shares have no par value.
Note 17(b): Option Value over Ordinary Shares
Reconciliation of option movement in the period:
At the beginning of the period
68,681,794
1,240,112
68,681,794
1,240,112
Options exercised during the period
(68,681,794)
(1,240,112)
-
-
-
-
68,681,794
1,240,112
30 June 2020
30 June 2019
No.
$
No.
$
42
2020 ANNUAL REPORT
Note 18: Reserves
Nature and Purpose of the Reserve
The option reserve recognises the value from the issue of options over ordinary shares and the expense recognised in
respect of share based payments.
Share Based Payments
30 June 2020
30 June 2019
No.
$
45,000,000
2,420,086
No.
-
$
-
Note 19: Commitments and Contingencies
Commitments
At 30 June 2020, the Company had commitments of $1,281,000 (2019: $Nil) with regards to the GMP manufacture
as per original agreement signed February 2020. A subsequent Change Order was implemented, due to deferment of
manufacturing to the second half of FY2021 signed 15 May 2020, moving the milestone payments into FY2021.
Note 20: Operating Segment
The Company has identifi ed its operating segments based on the internal reports that are reviewed and used by the
management team in assessing performance and determining allocation of the resources.
The operating segments are identifi ed by management based on the manner in which the expenses are incurred, and
for the purpose of making decisions about resource allocation and performance assessment.
Discrete fi nancial information about each of these operating segments is reported by the executive management
team to the board on a regular basis.
For the management purposes, the Company prepares its reporting for the following two operating segments that
has been identifi ed based on its antisense oligonucleotide products that are currently under development:
• ATL1102; and
• ATL1103
The assets and liabilities of the Company are not allocated to a segment.
All revenue and other income and expenses that do not directly relate to these two operating segments have been
currently reported as unallocated.
30 June 2020
ATL1102
ATL1103
Segment revenue and other income
Segment expenses
Net result
$
653,530
(1,310,153)
(656,623)
Unallocated
(Note a)
$
117,834
Total
$
771,560
$
196
(103,394)
(5,266,213)
(6,679,760)
(103,198)
(5,148,379)
(5,908,200)
ANNUAL REPORT 2020 43
Notes to the Financial Statements
For the year ended 30 June 2020
Note 20: Operating Segment continued
30 June 2019
Segment revenue and other income
Segment expenses
Net result
ATL1102
$
564,043
(950,566)
(386,523)
ATL1103
$
12,647
Unallocated
(Note a)
$
76,266
Total
$
652,956
(407,739)
(2,239,150)
(3,597,455)
(395,092)
(2,162,884)
(2,944,499)
Note 20(a): Unallocated breakdown
Unallocated revenue and other income
Interest from external parties
Grant Funding
Other Income
Unallocated result
Compliance expenses
Business development expenses
Employee expenses
Patent expenses
Other expenses
Note 21: Cash Flow Information
Reconciliation of cash fl ow from operations with loss after income tax
2020
$
30,332
14,902
72,600
117,834
2019
$
76,266
-
-
76,266
(364,863)
(628,483)
(1,349,175)
(203,802)
(2,719,890)
(251,856)
(372,773)
(1,258,204)
(137,761)
(218,557)
(5,266,213)
(2,239,151)
2020
$
2019
$
Cash flow reconciliation
Reconciliation of net loss after tax to net cash flows from operations:
Net loss before tax
(5,908,202)
(2,944,499)
Adjustments to reconcile loss before tax to net cash flows:
Depreciation expense (inc Leased Assets)
Share-based payments
Working capital adjustments:
Movement in trade and other receivables
Movement in prepayments
Movement in trade and other payables
Movement in provisions
107,601
2,420,086
(339,765)
(22,204)
(259,808)
56,934
5,377
-
(275,306)
(21,986)
218,867
89,111
Net cash fl ows used in operating activities
(3,945,358)
(2,928,436)
44
2020 ANNUAL REPORT
Note 22: Events After the Reporting
Period
There have not been any matters or circumstances, other
than that referred to in the fi nancial statements or notes
thereto, that have arisen since the end of the fi nancial
year, which signifi cantly aff ected, or may signifi cantly
aff ect, the operations of Antisense Therapeutics Limited,
the results of those operations or the state of aff airs of
Antisense Therapeutics Limited in future fi nancial years.
Note 23: Related Party Transactions
The following are identifi ed as Key Management
Personnel for the year:
• Mr Robert W. Moses
• Mr Mark Diamond
• Dr Graham Mitchell
• Mr William Goolsbee
• Dr Gary W Pace
• Dr George Tachas
• Ms Nuket Desem
There were no further transactions with related parties
during the current fi nancial year other than those
declared on the Remuneration Report.
Note 24: Financial Risk Management
Objectives and Policies
Note 24(a): Financial Instruments
The Company's fi nancial instruments consist of cash and
cash equivalents, trade and other receivables and trade
and other payables:
2020
$
2019
$
4,059,442
2,903,542
256,917
45,478
-
32,327
(291,677)
(551,486)
Cash and cash
equivalents
Other current assets
Trade and other
receivables
Trade and other
payables
The fair values of cash and short-term deposits,
trade and other receivables, trade and other payables
approximate their carrying amounts largely due to the
short-term maturities of these instruments.
The Company does not have any derivative instruments
at 30 June 2020 (2019: Nil).
Note 24(b): Risk Management Policy
The Board is responsible for overseeing the
establishment and implementation of the risk
management system, and reviews and assesses the
eff ectiveness of the Company's implementation of that
system on a regular basis.
The Board and Senior Management identify the general
areas of risk and their impact on the activities of the
Company, with Management performing a regular
review of:
• the major risks that occur within the business;
• the degree of risk involved;
• the current approach to managing the risk; and
•
if appropriate, determine:
(i) any inadequacies of the current approach; and
(ii) possible new approaches that more effi ciently and
eff ectively address the risk.
Management report risks identifi ed to the Board
through the Operations Report at Board Meetings and
periodically via direct communication as relevant risks are
identifi ed.
The Company seeks to ensure that its exposure to undue
risk which is likely to impact its fi nancial performance,
continued growth and survival is minimised in a cost
eff ective manner.
Note 24(c): Capital Risk Management
The Company's objectives when managing capital are to
safeguard the Company's ability to continue as a going
concern and to maintain an optimal capital structure so
as to maximise shareholder value. In order to maintain
or achieve an optimal capital structure, the Company
may issue new shares or reduce its capital, subject to the
provisions of the Company's constitution.
The capital structure of the Company consists of equity
attributed to equity holders of the Company, comprising
contributed equity, reserves and accumulated losses
disclosed in Notes 17 and 18. By monitoring undiscounted
cash fl ow forecasts and actual cash fl ows provided to
the Board by the Company's Management the Board
monitors the need to raise additional equity from the
equity markets.
ANNUAL REPORT 2020 45
Notes to the Financial Statements
For the year ended 30 June 2020
Note 24: Financial Risk Management Objectives and Policies continued
Note 24(d): Financial Risk Management
The main risks the Company is exposed to through its operations are interest rate risk, foreign exchange risk, credit
risk and liquidity risk.
Interest Rate Risk
The Company is exposed to interest rate risks via the cash and cash equivalents that it holds. Interest rate risk is the
risk that a fi nancial instruments value will fl uctuate as a result of changes in market interest rates. The objective of
managing interest rate risk is to minimise the Company's exposure to fl uctuations in interest rate that might impact its
interest revenue and cash fl ow.
To manage interest rate risk, the Company locks a portion of the Company's cash and cash equivalents into term
deposits. The maturity of term deposits is determined based on the Company's cash fl ow forecast.
Interest rate risk is considered when placing funds on term deposits. The Company considers the reduced interest
rate received by retaining cash and cash equivalents in the Company's operating account compared to placing funds
into a term deposit. This consideration also takes into account the costs associated with breaking a term deposit
should early access to cash and cash equivalents be required.
Weighted
Average
Eff ective
Interest
Rate
Floating
Interest
Rate
Fixed
Interest
Rate
within
Year
Fixed
Interest
Rate 1 to 5
Years
Fixed
Interest
Rate over
5 Years
%
$
$
30 June 2020
Financial Assets
Cash & cash equivalents
0.88
359,042
3,700,000
Trade & other
receivables
Financial Liabilities
-
-
-
0.88
359,042 3,700,000
Trade & other payables
-
-
-
Weighted
Average
Eff ective
Interest
Rate
Floating
Interest
Rate
Fixed
Interest
Rate
within
Year
Fixed
Interest
Rate 1 to 5
Years
Fixed
Interest
Rate over
5 Years
%
$
$
30 June 2019
Financial Assets
Non-
Interest
Bearing
$
Total
$
400 4,059,442
302,395
302,395
302,795 4,361,837
291,677
291,677
Non-
Interest
Bearing
$
Total
$
400
2,903,542
32,327
32,327
32,727 2,935,869
551,486
551,486
$
-
-
-
-
$
-
-
-
-
$
-
-
-
-
$
-
-
-
-
Cash & cash equivalents
2.00
403,142 2,500,000
Trade & other
receivables
Financial Liabilities
-
-
-
2.00
403,142 2,500,000
Trade & other payables
-
-
-
46
2020 ANNUAL REPORT
There has been no change to the Company's exposure to interest rate risk or the manner in which it manages and
measures its risk in the year ended 30 June 2020.
The Company has conducted a sensitivity analysis of the Company's exposure to interest rate risk. The percentage
change is based on the expected volatility of interest rates using market data and analysts forecasts. The analysis
shows that if the Company's interest rate was to fl uctuate as disclosed below and all other variables had remained
constant, then the interest rate sensitivity impact on the Company's profi t after tax and equity would be as follows:
2020: +1% (2019: +1%)
2020: -1% (2019: -1%)
Foreign Currency Risk
(Higher) / Lower
(Higher) / Lower
2020
18,235
(18,235)
2019
29,304
(29,304)
The Company is exposed to foreign currency risk via the trade and other receivables and trade and other payables that
it holds. Foreign currency risk is the risk that the value of a fi nancial instrument will fl uctuate due to changes in foreign
exchange rates. The Company aims to take a conservative position in relation to foreign currency risk hedging when
budgeting for overseas expenditure however; the Company does not have a policy to hedge overseas payments or
receivables as they are highly variable in amount and timing, due to the reliance on activities carried out by overseas
entities and their billing cycle.
The following fi nancial assets and liabilities are subject to foreign currency risk:
Trade and other payables (AUD/USD)
Trade and other payables (AUD/GBP)
Trade and other payables (AUD/EUR)
2020
$
481
116
2,128
2019
$
7,617
89
1,912
Foreign currency risk is measured by regular review of our cash forecasts, monitoring the dollar amount and
currencies that payment are anticipated to be paid in. The Company also considers the market fl uctuations in relevant
currencies to determine the level of exposure. If the level of exposure is considered by Management to be too high,
then Management has authority to take steps to reduce the risk.
Steps to reduce risk may include the acquisition of foreign currency ahead of the anticipated due date of an invoice or
may include negotiations with suppliers to make payment in our functional currency. Management mitigated foreign
currency risk by purchasing Great British Pounds currency during the current fi nancial year. Should Management
determine that the Company should consider taking out a hedge to reduce the foreign currency risk, they would need
to seek Board approval.
The Company conducts some activities outside of Australia which exposes it to transactional currency movements,
where the Company is required to pay in a currency other than its functional currency.
There has been no change in the manner the Company manages and measures its risk in the Year Ended 30 June 2020.
The Company is exposed to fl uctuations in United States dollars, Euros, and Great British Pounds. Analysis is
conducted on a currency by currency basis using sensitivity variables.
The Company has conducted a sensitivity analysis of the Company's exposure to foreign currency risk. The
sensitivity analysis variable is based on the expected overall volatility of the signifi cant currencies, which is based on
management’s assessment of reasonable possible fl uctuations taking into consideration movements over the last
6 months each year and the spot rates at each reporting date. The analysis shows that if the Company's exposure
to foreign currency risk was to fl uctuate as disclosed below and all other variables had remained constant, then the
foreign currency sensitivity impact on the Company's loss after tax and equity would be as follows:
ANNUAL REPORT 2020 47
Notes to the Financial Statements
For the year ended 30 June 2020
Note 24: Financial Risk Management Objectives and Policies continued
Note 24(d): Financial Risk Management continued
Foreign Currency Risk continued
AUD/USD: 2020: +3% (2019: +3%)
AUD/USD: 2020: -3% (2019: -3%)
AUD/GBP: 2020: +3% (2019: +3%)
AUD/GBP: 2020: -3% (2019: -3%)
AUD/EUR: 2020: +3% (2019: +3%)
AUD/EUR: 2020: -3% (2019: -3%)
Credit Risk
(Higher) / Lower
(Higher) / Lower
2020
14
(14)
3
(3)
64
(64)
2019
229
(229)
3
(3)
57
(57)
The Company is exposed to credit risk via its cash and cash equivalents and trade and other receivables. Credit risk
is the risk that a counter-party will default on its contractual obligations resulting in a fi nancial loss to the Company.
To reduce risk exposure for the Company's cash and cash equivalents and other receivables, it places them with high
credit quality fi nancial institutions.
Historically the Company has had minimal trade and other receivables, with the majority of its funding being provided
via shareholder investment. Traditionally the Company's trade and other receivables relate to GST refunds and
Research and Development Tax Concession amounts due to the Company from the Australian Tax Offi ce. At 30 June
2020 GST accounted for $36,865 (2019: $19,882) of the trade and other receivables, respectively. At 30 June 2020,
accrued interest from the Commonwealth Bank amounted to $381 (2019: $3,376).
The trade and other receivables at 90+ days also include the rent bond on the offi ce premises of $8,231. This is not
considered impaired. The Board believes that the Company does not have signifi cant credit risk at this time in respect
of its trade and other receivables.
Trade receivables
The Company applies the AASB 9 simplifi ed approach to measuring expected credit losses which uses a lifetime
expected loss allowance for all trade receivables.
To measure the expected credit losses, trade receivables assets have been grouped based on shared credit risk
characteristics and the days past due.
The expected loss rates are based on the payment profi les of receivables over a period of 60 months before 30
June 2020 and the corresponding historical credit losses experienced within this period. The historical loss rates are
adjusted to refl ect current and forward-looking information on macroeconomic factors aff ecting the ability of the
customers to settle the receivables.
As at 30 June 2020, the Company concludes that there is no signifi cant exposure to credit risk due to Trade
Receivables comprising of statutory entitlements of GST refund.
48
2020 ANNUAL REPORT
The Company has analysed its trade and other receivables below. All trade and other receivables disclosed below have
not been impaired.
Less than
6 months
6-12
months
Between
1 and 2
years
Between
2 and 5
years
Over 5
years
Total
contractual
cash fl ows
Carrying
amount
(assets)/
liabilities
$
45,478
32,327
$
-
-
$
-
-
$
-
-
$
-
-
$
$
45,478
45,478
32,327
32,327
30 June 2020
Trade and other
receivables
30 June 2019
Trade and other
receivables
Trade receivables are written off when there is no reasonable expectation of recovery. Indicators that there is no
reasonable expectation of recovery include, amongst others, the failure of a debtor to engage in a repayment plan
with the group, and a failure to make contractual payments for a period of greater than 121 days past due.
Impairment losses on trade receivables are presented as net impairment losses within operating profi t. Subsequent
recoveries of amounts previously written off are credited against the same line item.
Liquidity Risk
The Company is exposed to liquidity risk via its trade and other payables. Liquidity risk is the risk that the Company
will encounter diffi culty in raising funds to meet the commitments associated with its fi nancial instruments.
Responsibility for liquidity risk rests with the Board who manage liquidity risk by monitoring undiscounted cash fl ow
forecasts and actual cash fl ows provided to them by the Company's Management at Board meetings to ensure that
the Company continues to be able to meet its debts as and when they fall due. Contracts are not entered into unless
the Board believes that there is suffi cient cash fl ow to fund the associated commitments. The Board considers when
reviewing its undiscounted cash fl ow forecasts whether the Company needs to raise additional funding from the
equity markets.
(i) Maturities of fi nancial liabilities
The table below analyse the Company's fi nancial liabilities into relevant maturity groupings based on their contractual
maturities. The amounts disclosed in the table are the contractual undiscounted cash fl ows.
Less than
6 months
6-12
months
Between
1 and 2
years
Between
2 and 5
years
Over 5
years
Total
contractual
cash fl ows
Carrying
amount
(assets)/
liabilities
30 June 2020
Trade and other
payables
Lease Liabilities
$
291,677
$
-
$
-
56,065
56,510
28,255
Total
347,742
56,510
28,255
30 June 2019
Trade and other
receivables
Total
551,486
551,486
-
-
-
-
$
-
-
-
-
-
$
-
-
-
-
-
$
$
291,677
291,677
140,830
140,830
432,507
432,507
551,486
551,486
551,486
551,486
ANNUAL REPORT 2020 49
Notes to the Financial Statements
For the year ended 30 June 2020
Note 25: Company Information
Information about subsidiaries
The consolidated fi nancial statements incorporate the assets, liabilities and results of the following subsidiaries in
accordance with the accounting policy:
Name
Principal Activities
Country of incorporation
Antisense Therapeutics (HK) Pty Ltd
Provision of licenses
Australia
% Equity interest
2020
100
2019
100
Directors' Declaration
In accordance with a resolution of the Directors of Antisense Therapeutics Limited, we state that:
1.
In the opinion of the Directors:
(a) the consolidated fi nancial statements and notes of Antisense Therapeutics Limited for the fi nancial year
ended 30 June 2020 are in accordance with the Corporations Act 2001, including:
(i) giving a true and fair view of the consolidated entity's fi nancial position as at 30 June 2020 and of its
performance for the year ended on that date; and
(ii) complying with Accounting Standards and the Corporations Regulations 2001;
(b) the consolidated fi nancial statements and notes also comply with International Financial Reporting Standards
as disclosed in Note 1.c; and
(c) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they
become due and payable.
2. This declaration has been made after receiving the declarations required to be made to the Directors by the chief
executive offi cer and chief fi nancial offi cer in accordance with section 295A of the Corporations Act 2001 for the
fi nancial Year Ended 30 June 2020.
On behalf of the board,
Signed in accordance with a resolution of the Directors.
Mr Robert W. Moses
Independent Non-Executive Chairman
Mr Mark Diamond
Managing Directer and Chief Executive Offi cer
Dated: This day 26th day of August 2020
50
2020 ANNUAL REPORT
Independent Auditor's Report
Ernst & Young
8 Exhibition Street
Melbourne VIC 3000 Australia
GPO Box 67 Melbourne VIC 3001
Tel: +61 3 9288 8000
Fax: +61 3 8650 7777
www.ey.com
Independent auditor’s report to the members of Antisense
Therapeutics Limited
Report on the Audit of the Financial Report
Opinion
We have audited the fi nancial report of Antisense Therapeutics Limited (the Company) and its subsidiaries
(collectively the Group), which comprises the consolidated statement of fi nancial position as at 30
June 2020, the consolidated statement of profi t or loss and other comprehensive income, consolidated
statement of changes in equity and consolidated statement of cash fl ows for the year then ended, notes
to the fi nancial statements, including a summary of signifi cant accounting policies, and the directors'
declaration.
In our opinion, the accompanying fi nancial report of the Group is in accordance with the Corporations Act
2001, including:
a) giving a true and fair view of the consolidated fi nancial position of the Group as at 30 June 2020 and of
its fi nancial 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 (the Code) that
are relevant to our audit of the fi nancial report in Australia. We have also fulfi lled our other ethical
responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is suffi cient and appropriate to provide a basis for
our opinion.
Material Uncertainty Related to Going Concern
We draw attention to Note 1b in the fi nancial report, which indicates that the Group incurred a net loss of
$5.9m and a cash outfl ow from operations of $3.9m during the year ended 30 June 2020. These conditions
along with the other factors outlined in Note 1b indicate that a material uncertainty exists that may cast
signifi cant doubt on the Group’s ability to continue as a going concern. Our opinion is not modifi ed in
respect of this matter.
ANNUAL REPORT 2020 51
Independent Auditor's Report continued
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most signifi cance in our
audit of the fi nancial report of the current year. These matters were addressed in the context of our audit
of the fi nancial report as a whole, and in forming our opinion thereon, but 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. For each matter below, our description of how our audit addressed the
matter is provided in that context.
We have fulfi lled the responsibilities described in the Auditor’s Responsibilities for the Audit of the
Financial Report section of our report, including in relation to these matters. Accordingly, our audit
included the performance of procedures designed to respond to our assessment of the risks of material
misstatement of the fi nancial report. The results of our audit procedures, including the procedures
performed to address the matters below, provide the basis for our audit opinion on the accompanying
fi nancial report.
Why signifi cant
How our audit addressed the key audit matter
Research & Development tax benefi t
Our procedures included the following:
• Evaluating the methodology and assumptions
used by the Group in calculating the R&D income
tax credit receivable with reference to the
applicable legislation, in conjunction with our
R&D taxation specialists;
• Assessing the mathematical accuracy of the
Group’s calculations of the estimated R&D credit
receivable; and
• Comparing the historical estimates made in
previous years against the actual R&D credits
received.
Under the Australian Government’s Research &
Development (“R&D”) income tax credit regime,
the Group is entitled to an R&D credit on eligible
R&D expenditure incurred including the decline in
value of depreciating assets used in eligible R&D
activities.
The Group has estimated the R&D credit for
the year ended 30 June 2020 and recognised an
amount as receivable under the scheme upon fi ling
its claim along with the lodgement of its annual
tax return. The estimated amount of
$638,336 is recorded as Other Income in the
Consolidated Statement of Profi t or Loss and Other
Comprehensive Income and a receivable in the
Consolidated Statement of Financial Position.
The Group’s policy for accounting for this income
and the receivable are disclosed in Note 1 to the
Financial Report.
This was considered a key audit matter due to
the quantum of the receivable recorded and the
judgement associated with applying the relevant
income tax legislation.
52
2020 ANNUAL REPORT
Why signifi cant
How our audit addressed the key audit matter
Accounting for share based payment
arrangements
Our procedures included:
During the year, the Group issued options to
certain key management personnel, including
Directors and the Managing Director and CEO,
under share based payment arrangements.
The share based payment arrangements vested
immediately upon granting. In determining the fair
value of the arrangements, the Group used the
services of a third-party valuation specialist.
Details of these share based payment
arrangements are disclosed in Note 16 of the
Financial Report and are also disclosed in the
Remuneration Report.
There is signifi cant judgement involved in
determining the fair value and vesting conditions
of share based payment arrangements. As a
result, the audit of the share based payment
arrangements was considered a key audit matter.
• Agreeing the terms of the share based payment
arrangements issued during the period to
Employee Share Option Plan offer documents;
• Testing the clerical accuracy of the option
valuation models and performing a recalculation
of each valuation;
• Assessing the approach adopted by management
in the option valuation models in line with
market practice;
• Assessing the key inputs in the option valuation
calculation, including risk free interest rates
and expected volatility rates, based on external
data;
• Assessing the disclosure of share based
payments against the requirements of Australian
Accounting Standards.
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 Company’s 2020 Annual Report other than the fi nancial report and our auditor’s report
thereon. We obtained the Operations Report, Intellectual Property Report, Directors' Report and Corporate
Governance Statement that are to be included in the Annual Report, prior to the date of this auditor’s
report, and we expect to obtain the remaining sections of the Annual Report after the date of this
auditor’s report.
Our opinion on the fi nancial report does not cover the other information and accordingly we do not express
any form of assurance conclusion thereon, with the exception of the Remuneration Report and our related
assurance opinion.
In connection with our audit of the fi nancial report, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially inconsistent with the fi nancial 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.
ANNUAL REPORT 2020 53
Independent Auditor's Report continued
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the fi nancial report that gives a true
and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such
internal control as the directors determine is necessary to enable the preparation of the fi nancial report that
gives a true and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the fi nancial report, the directors are responsible for assessing the Group’s ability to continue
as a going concern, disclosing, as applicable, matters relating 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 fi nancial 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 infl uence the economic decisions of
users taken on the basis of this fi nancial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgement and maintain professional scepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the fi nancial report, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that
is suffi cient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast signifi cant doubt on the Company’s ability to continue as a going concern.
If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s
report to the related disclosures in the fi nancial report or, if such disclosures are inadequate, to modify
our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause the Company to cease to continue as a going
concern.
• Evaluate the overall presentation, structure and content of the fi nancial report, including the
disclosures, and whether the fi nancial report represents the underlying transactions and events in a
manner that achieves fair presentation.
54
2020 ANNUAL REPORT
We communicate with the directors regarding, among other matters, the planned scope and timing of
the audit and signifi cant audit fi ndings, including any signifi cant defi ciencies in internal control that we
identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated to the directors, we determine those matters that were of most
signifi cance in the audit of the fi nancial report of the current year and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should
not be communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefi ts of such communication.
Report on the Audit of the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 17 to 25 of the directors' report for the year
ended 30 June 2020.
In our opinion, the Remuneration Report of Antisense Therapeutics Limited for the year ended 30 June
2020, complies with section 300A of the Corporations Act 2001.
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.
Ernst & Young
Ernst & Young
Matt Biernat
Partner
Melbourne
26 August 2020
A member fi rm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
ANNUAL REPORT 2020 55
Shareholder Information
As at 12 October 2020
Number of Holders of Equity Securities
Ordinary Shares
488,988,171 fully paid ordinary shares are held by 2,370
individual shareholders.
All ordinary shares carry one vote per share.
Distribution of Quoted Security holders
No. of Holders
Ordinary Shares
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 +
Total number of shareholders
Unmarketable parcels (under $500)
Twenty Largest Ordinary Shareholders
Shareholders
1
2
3
4
NATIONAL NOMINEES LIMITED
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
CITYCASTLE PTY LTD
5 MUTUAL INVESTMENTS PTY LTD
6
7
CITICORP NOMINEES PTY LIMITED
ESARAD HOLDINGS PTY LTD
8 MR ROBERT WILLIAM MOSES
9
10
CITYCASTLE PTY LTD
ALTOR CAPITAL MANAGEMENT PTY LTD
11 MR ROBERTSON MCLENNAN MITCHELL & MRS KAREN JOY MITCHELL
12
13
14
15
XCELERATE TRADING PTY LTD
SHARED OFFICE SERVICES PTY LTD
SKED PTY LTD
JAMPLAT PTY LTD
16 MR RAYMOND LAURENCE CARROLL
17 MR MARK DIAMOND
18
BAYSPEC PTY LTD
19 MR DAVID KENLEY
20
STATEMOOR PTY LTD
Total
Total balance of remaining holders
Unquoted Equity Securities Holdings Greater Than 20%
Nil
Substantial Shareholders
Number
26,310,597
25,510,561
11,269,099
10,293,620
10,000,000
9,899,065
9,500,000
9,000,000
8,747,369
8,600,000
7,100,000
5,948,298
5,940,602
5,362,289
5,000,000
5,000,000
4,242,772
4,000,001
4,000,000
3,821,034
179,545,307
309,442,864
36.72
63.28
124
193
298
1,224
531
2,370
235
%
5.38
5.22
2.30
2.11
2.05
2.02
1.94
1.84
1.79
1.76
1.45
1.22
1.21
1.10
1.02
1.02
0.87
0.82
0.82
0.78
The names of substantial shareholders the Company is aware of from the register or who have notifi ed the Company
in accordance with Section 671B of the Corporations Act are:
NATIONAL NOMINEES LIMITED ACF AUSTRALIAN ETHICAL INVESTMENT LIMITED
CITYCASTLE PTY LTD
No. of Shares
26,310,597
25,666,299
56
2020 ANNUAL REPORT
Corporate Information
ABN 41 095 060 745
DIRECTORS
SOLICITORS
Minter Ellison
Rialto Towers
Level 23, 525 Collins Street, Melbourne Victoria 3000
Australia
BANKERS
Commonwealth Bank of Australia
Melbourne Victoria
AUDITORS
Ernst and Young
8 Exhibition Street, Melbourne Victoria 3000
Australia
WEBSITE
www.antisense.com.au
Mr Robert W Moses
Independent Non-Executive
Chairman
(Appointed: 23 October 2001)
Mr Mark Diamond
Managing Director
(Appointed: 31 October 2001)
Dr Graham Mitchell
Independent Non-Executive
Director
(Appointed: 24 October 2001)
Dr Gary W Pace
Independent Non-Executive
Director
(Appointed: 9 November 2015)
Mr William Goolsbee
Independent Non-Executive
Director
(Appointed: 15 October 2015)
COMPANY SECRETARY
Mr Phillip Hains
Company Secretary and Chief Financial Offi cer
REGISTERED OFFICE
6-8 Wallace Avenue, Toorak Victoria 3142
Australia
Telephone:
+61 (0)3 9827 8999
PRINCIPAL PLACE OF BUSINESS
6-8 Wallace Avenue, Toorak Victoria 3142
Australia
Telephone:
Facsimile:
+61 (0)3 9827 8999
+61 (0)3 9859 7701
SHARE REGISTER
Boardroom Pty Ltd
Level 12, 225 George Street, Sydney NSW 2000
Australia
Telephone:
1300 737 760
Antisense Therapeutics Limited shares are listed on the
Australian Stock Exchange (ASX)
American Depository Receipts (ADR) - OTC:ATHJY
ANNUAL REPORT 2020 57
Annual Report 2020
6-8 Wallace Avenue,
Toorak Victoria 3142
Australia
T: + 61 (0)3 9827 8999
F: + 61 (0)3 9859 7701
www.antisense.com.au