Annual
Report
2024
Leading the Future
of Medical Diagnostics
Contents
Atomo Diagnostics Limited
ACN 142 925 684
atomodiagnostics.com
01
Who We Are
02
Chairman’s Letter
04
CEO’s Report
06
Diagnostic Landscape
08
Unique Solutions
09
Key Metrics
10
Technology
12
Market/Products
14
Commercial Pipeline
15
Operational Capabilities
16
People and Culture
17
ESG
20
Directors’ Report
35
Financial Statements
36
Statement of Profit or Loss and
Other Comprehensive Income
37
Statement of Financial Position
38
Statement of Changes in Equity
39
Statement of Cash Flows
40
Notes to Financial Statements
65
Consolidated Entity Disclosure
Statement
66
Directors’ Declaration
67
Independent Auditor’s Report
72
Shareholder Information
74
Corporate Directory
ATOMO ANNUAL REPORT 2024
01
Increasingly recognised as a provider of user-friendly
medical diagnostic devices.
We are committed to driving innovation and enhancing
patient outcomes through rapid, accurate point-of-care
testing with less room for error.
Atomo's mission is to ensure equitable and affordable
access to accurate diagnoses in decentralised settings
offering a seamless pathway to treatment.
Point-of-Care
Finished Test Products
Tests for infectious diseases across
point-of-care and self-test
settings, distributed through an
expanding global network.
Point-of-Care
OEM Technology
Unique blood and swab test
devices and components, supplied
to partners with capability to
incorporate their own test assays
into Atomo devices.
Who We Are
We are an innovative diagnostics company supplying novel, integrated rapid diagnostic
test devices and finished point-of-care rapid tests to global partners and increasingly
direct to consumers.
Atomo’s strategic focus is on two drivers of growth:
ATOMO ANNUAL REPORT 2024
Chairman’s Letter
Dear Shareholders,
I write to thank you for your continued support of Atomo
Diagnostics (Atomo) and to introduce our Annual Report. During
the year the market saw continued growth in decentralised
testing across both pharmacy retail and public health channels.
Our continuing participation and advocacy of rapid testing
to the benefit of community health aligns with the broader
adoption of rapid testing within public health policy, as evidenced
by the Australian Federal Government announcing funding for
HIV self-tests as a key pillar of HIV health policy.
Throughout the financial year, we saw continuing consumer
adoption of rapid testing and the establishment of rapid tests
as a ranged category across pharmacy retail in developed
healthcare markets. The material change in revenue mix and
magnitude from the extreme demands for COVID tests during
the pandemic has shifted to longer term demand for an
increasing breadth of rapid diagnostic tests.
The benefits of frequent, convenient testing reduce demands
on facilities-based testing resources. We are seeing a growing
desire amongst people to exercise a greater level of control over
their health. Self-testing allows individuals to conveniently,
discretely and accurately assess and act based on their condition.
Our partners continue to increase in number, reflecting growing
demand across products and markets and marking a new level
of acceptance from regulators and public health of the merits
of rapid testing in decentralised settings.
John Keith
Chair, Atomo Board
ATOMO ANNUAL REPORT 2024
02
a tool for broader community health management.
We see this change in the continued popularity and
adoption of telehealth consultations and corresponding
validation by health authorities, insurers and clinicians
of the use of diagnostics in the home.
Our Financial Management
Atomo’s change year-on-year in revenue and sales
mix reflected the absolute shift in demand with the
pandemic passing. This change allowed Atomo to
prioritise the production and delivery of its existing
patented products. The replenishment of Global
Health budgets for HIV that were previously deployed
for COVID testing and the widening demand for
different types of rapid tests in consumer retail
settings enable increased utilisation of our established
production capacity. Making full use of this capacity
to deliver growing sales remains our priority. During
this period the company has had a focus on cost
management with operational expenditure reducing
year on year since FY22.
You, Our Shareholders
The capital raised in early FY23 supports the
commercial scale up of our HIV Self-Test business
across international markets, supporting new
customers seeking access to our products and an
expanding pipeline opportunities for future business.
We welcomed a number of new shareholders on to our
register and their interest in and engagement with the
company.
Our People
The people who make up Atomo - its executives,
management and board - are working tirelessly on
the opportunities for rapid diagnostic testing.
Our management team have led with care and insight
throughout the year, navigating conditions that have
offered changing opportunities and different risks. On
behalf of shareholders, the board warmly recognises
these considerable efforts.
Atomo continues to deliver on its objective to be a
global leader in rapid diagnostics. Adoption of rapid
diagnostics during the pandemic has changed users’
behaviours and expectations of testing. Atomo
continues to meet this demand. We welcome your
continuing support and hope that you share in our
excitement.
John Keith
Chair, Atomo Board
Our Business
Atomo develops and supplies integrated test devices
and finished test products for use by healthcare
professionals as well as patient self-testing.
Atomo has a long-term strategic focus in three key
areas:
1. Sexual Health Testing
The development, commercialisation, and sale of finished
rapid test products, such as Atomo’s HIV Self-Test.
Demand for Atomo’s HIV Self-Test spans participation in
Global Health programmes and, increasingly, in
developed markets including in Australia and the UK.
Atomo’s HIV Self-Test remains the only ARTG-listed
self-test, and Australian distribution channels are ever
widening to include an increasing number of pharmacies,
vending machines in university campuses and licensed
sex-on premises and through online mail out channels.
Outside of Australia, our partnerships with Viatris for
global health markets and Newfoundland Diagnostics
across Europe and the UK, see Atomo’s HIV Self-Test
actively promoted.
2. OEM+ Devices
Atomo partners in developing and supplying integrated
test platforms that deliver our partners’ finished rapid
tests to end users. The extent of our involvement in this
process sees us describe the Original Equipment
Manufacturer activity as OEM+, reflecting the fact that
Atomo is increasingly supporting with product
approvals and commercialisation well beyond simply
supplying assembled cassettes. Tests include Lumos
Diagnostics’ FebriDx bacterial detection test and NG
Biotech’s early pregnancy test. We celebrated Lumos’
510(k) clearance from the FDA for its FebriDx test,
representing the first 510(k) approved test from the US
FDA on Atomo’s Pascal platform. Atomo’s partnership
with NG Biotech in pregnancy testing involves our
option to distribute in new markets, including the US,
Australia and New Zealand, subject to regulatory
approvals.
3. Consumer Health and Wellness
Responding to decentralising health services and
increasing demand from consumers for greater
convenience and ownership of the healthcare
experience, Atomo’s user-centric solutions allow end
users timely and accurate rapid test results. This change
is visible in discussions with rapid test development
companies looking to partner with Atomo by using our
platforms to house their tests.
The adoption of rapid testing enables the
decentralisation of screening diagnostics, and the
widespread acceptance by regulators and by public
health authorities who increasingly see its value as
ATOMO ANNUAL REPORT 2024
03
The performance of Atomo’s integrated blood test
products positions the company as an increasingly
recognised provider of leading user-friendly rapid test
solutions. This has facilitated our securing agreements
with new commercial partners that supported the
successful launch of our HIV Self-Test products into
leading retail chains in a number of developed markets.
This included leading UK channel partners Tesco
supermarkets and Boots pharmacies and Blooms the
Chemist among others in Australia. The ranging of HIV
self-tests in mainstream pharmacy retail channels
further highlights the structural changes in the
diagnostic market and speaks to the opportunity for
Atomo to expand test menu in this growing segment.
This valuable experience of launching in consumer and
self-test focused channels in Australia and in the UK
assists us in providing possible pathways to enter other
markets, including in the US. Our strategic goal of
expanding the HIV test business across key
international markets is supported by success during
the year entering both consumer and public health
focused channels.
CEO’s Report
John Kelly
Chief Executive Officer
The point-of-care-test diagnostic market continues to move beyond the
impact of a COVID-19 pandemic which brought significant changes to the
testing landscape. This included how public health agencies think about
large scale testing, especially in the home and increased consumer
acceptance of and interest in self-testing. Post-pandemic, diagnostic
companies saw reduced revenues and market valuations as large scale
COVID testing disappeared. Atomo is pleased to now see revenues start
to improve from this post-pandemic low, as opportunities created by the
transition to decentralised testing now start to show momentum delivering
an improvement in non-COVID business fundamentals.
Atomo has, over the course of the financial year,
continued to penetrate in the Australian pharmacy
market with more than 100 new pharmacies now
stocking the HIV test. This year also saw public health
funding for procurement and supply of HIV self-tests
free to users in Australia for the first time. A milestone
that reflects a larger transition to the use of at-home
self-testing as a key tool for the diagnosis and
management of infectious and chronic disease in the
community.
During the year we supplied more than 250,000 tests
to Newfoundland Diagnostics to support product
launches in a number of European countries and
Colombia, and we also recently secured registration for
a six language Eastern European product variant. We
supplied more than half a million tests to our global
health partner Viatris to date during 2024, who continue
to supply our test into a number of African and Asian
markets.
During the year, Atomo started working closely with
Burnet Diagnostics on the development and
commercialisation of novel rapid test assays being
ATOMO ANNUAL REPORT 2024
04
1
CLIA Waiver typically increases by 500% the number of locations where
a POCT test can be used, compared with 510(k) only
2 OpEx excluding one off inventory write offs & impairment of intangibles
in comparative periods.
Our business priorities for the coming
year are clear:
•
Progress go-to-market pathways to support
entry into CLIA Waived and over the counter
(OTC) channels in the key US market
•
Continue restructuring of Atomo’s operational
footprint to continued targeted reduction in
Cost of Goods and OpEx
•
Complete strategic partnership agreement
with Burnet Diagnostics for development and
commercialisation of further Pascal-based
finished tests
•
Secure new customers for Atomo cassette
development / supply
•
Establish pipeline of development services
programs that generate near term services fee
revenues with a goal of converting to long-
term supply agreements for cassette supply
•
Deliver customer proprietary technology
solutions beyond lateral flow, where workflows
remain a challenge that Atomo’s patented
modular technology can address.
optimised on our Pascal cassette. This partnership
includes a test that screens for active syphilis infection
in both professional and self-test settings, reflecting our
continued focus on sexual health. A second test
measures liver function and appears to have significant
clinical utility across a range of therapeutic areas where
liver function is an important marker of health, as well as
having utility in clinical trials where there is a risk of liver
toxicity. Initial production orders for Pascal cassettes
to support an initial trial have recently been received.
We were pleased to see an increase in overall demand
for Pascal from customers. Regulatory approval for
Lumos Diagnostics’ FebriDx™ test on our Pascal
platform in the important US market was secured
during the year, with CLIA Waiver now underway.
This is the next step towards ensuring that Pascal has
established regulatory pathways that supports a broad
range of test applications and use settings in the US.
Securing CLIA Waiver would significantly expand the
number of healthcare and community settings in the
US where the FebriDx test can be used1, and further
increases the attractiveness of Pascal to a broader
range of US market participants.
There has been a focus on raising awareness of Atomo’s
technology solutions in the diagnostics market with the
company attending two US conferences in recent
months. Attention is also now being turned to
opportunities to adapt Atomo’s core functionality from
the current formats used to support lateral flow testing
towards solutions optimised for POC reader and rapid
molecular formats. These increasingly important
diagnostic formats seek to address a number of the
limitations with lateral flow, but typically still suffer from
user workflow challenges and complexities that limit
adoption in decentralised and at-home settings. The
patented functionality developed by Atomo supports
a range of diagnostic formats and we are excited about
the opportunity to expand the areas of the market
where we can deliver solutions and provide meaningful
performance improvements moving forward.
The company has worked hard over the period to
reduce operating expenses across the business with
approximately $2 million removed from OpEx2 during
FY24. This follows an OpEx reduction of $1.5 million
for FY23 and cost continues to remain an area of
management focus moving forward. This cost out
strategy positions the business for scale and provides a
lower fixed cost of goods and services moving forward.
As we move through FY25, we look forward to
continued expansion of our core HIV test business and
to supporting commercialisation of new customers
and solutions utilising Atomo’s integrated test
solutions across point-of-care and at-home channels.
We also look forward to an expanded regulatory and
commercial pathway to support market expansion
by way of having a CLIA Waived test on Pascal in the
US market.
John Kelly
Chief Executive Officer
This prudent cash management saw the company close
out the FY24 period with $3.69 million cash on hand,
remaining debt free.
ATOMO ANNUAL REPORT 2024
05
The Emergence of Home Testing
The global point-of-care diagnostics market is
projected to exceed US$75 billion by 20303
highlighting increasing demand for decentralised
testing solutions more broadly and reflecting
acceptance of rapid testing at home. Among the
factors driving this growth is the simplicity and cost
effectiveness of lateral flow assays (LFA). LFAs are
a core segment of point-of-care testing which is
gaining traction in a market traditionally dominated by
laboratory testing. The COVID-19 pandemic
accelerated this shift and changed the testing
landscape, highlighting the utility of testing away from
clinical settings and creating a more favourable
regulatory and clinical environment for decentralised
testing. This shift is evident in the widespread
availability of rapid tests in the market, which have
become standard ranged items in pharmacy retail
channels. Major retailers like Tesco and Boots in the
UK and CVS in the US are increasingly ranging this
product category, signalling a changed market
landscape and growing consumer demand.
Diagnostic Landscape
The Shift Towards Decentralised Testing
Within public health, there is a growing recognition on
the importance of self-testing, especially for infectious
diseases. Decentralised delivery improves the
efficiency of healthcare services and in the case of
sexual health, also helps to address social and cultural
barriers to testing. It also delivers a level of
convenience and discretion not available with facility-
based testing services. The economic benefits of
public health funded at-home testing as part
of wider healthcare initiatives are also becoming
increasingly clear.
As the healthcare landscape continues to evolve, the
rise of at-home testing, including OTC purchased and
physician prescribed, represents a fundamental
expansion of the POCT market. The convergence of
technology, consumer demand, and supportive
regulatory environments is paving the way for a future
where at-home testing is not only a viable alternative,
but a preferred choice for many aspects
of healthcare.
3
BusinessWire
ATOMO ANNUAL REPORT 2024
06
Emergence of Public Health Support in Australia
In the 2024 Federal Budget released in May, the
Australian Federal Government announced a
commitment of A$43.9 million to HIV services,
marking a significant investment in the fight against
HIV. This funding included for the first time a
commitment to procurement and scale up of HIV
self-testing nationally.
National Association of People With HIV
Australia x Grindr
One key initiative now directly funded by the
government is the free to user test mailout program
implemented by the National Association of People
with HIV Australia (NAPWHA). This program, set up
in late 2023 by NAPWHA and supported by Atomo,
enables individuals to receive two free HIV self-tests
every six months via an internet portal and home
delivery. The initiative has been extremely successful
in reaching key populations through direct awareness
via the Grindr for Equality program, which provides
free advertising and promotion to the LGBTQ+ dating
community utilising the Grindr App. Data from the
pilot phase of the program indicated that the program
has been helpful in supporting testing among harder
to reach groups, with more than 40% of testers never
having tested or not having tested in the last two
years.
National Vending Machine Programs
Vending machine programs have also been a pivotal
component of expanding access to HIV testing,
particularly among cohorts not usually testing through
existing facilities-based services. Atomo has worked
with SAMESH to support the Connect program which
pioneered delivery of HIV self-tests via vending
machines in South Australia, as well as working with
Queensland Positive People to establish and upscale
the RAPID program, with vending machines placed in
locations throughout Brisbane. National scale up of
this model for test distribution has now been funded
by Federal Government in the recent budget, with
Thorne Harbour selected to implement the scale up
phase over the next two years.
The New South Wales Ministry of Health supported
by Atomo, established a statewide vending machine
program in New South Wales earlier this year. Branded
‘MyTest’, vending machines have been strategically
placed on university campuses and in other venues
across the state, with more installations across the
state planned for the coming year.
Atomo is extremely proud to have been instrumental
in supporting the set up and validation of these novel
channels that improve access to free-to-user testing,
and the company looks forward to working with all
levels of government and community organisation to
continue to see these initiatives expanded nationally to
reflect the growing demand for reliable and convenient
self-testing across Australia.
ATOMO ANNUAL REPORT 2024
07
Unique Solutions
Atomo’s solutions to improve the ease and reliability of
rapid testing have been developed with the user at the
centre of the development process. The functionality
integrated into our products simplifies the steps of use
to run a test and have been proven to deliver reduced
errors in use. This best-in-class usability also supports
very high levels of user preference over multi-
component test kit formats.
Features such as a built-in safety lancet, accurate
controlled blood collection and delivery, button
activated buffer reagent delivery, and interlock
features ensure critical steps of use happen in the
correct sequence and remove or minimise common
causes of error.
The exceptional usability and user preference
delivered by the Atomo Pascal Platform has enabled
Atomo to enter into long term supply agreements with
diagnostic companies looking to integrate their own
tests with Atomo’s technology. Notably, NG Biotech
and Lumos Diagnostics have developed specialised
tests on the Pascal platform and utilised Pascal’s
usability performance to secure regulatory approvals
for their tests across international markets.
At the start of financial year 2024, Lumos secured US
FDA 510(k) clearance of its FebriDx™ test on Pascal
Platform and more recently announced a funded CLIA
Waiver process for their FebriDx™ test in the US. CLIA
Waiver of the FebriDx™ test assists in the
differentiation of viral and bacterial acute respiratory
infections.
NG Biotech is a French diagnostics company focusing
on the development and manufacture of novel in-vitro
diagnostics products for therapy monitoring at the
point-of-care. Utilising Atomo’s Pascal platform, NG’s
blood-based Precision+ Pregnancy Test offers results
in 5 minutes. Pregnancy levels build up earlier in blood
than in urine and unlike urine, hCG levels do not
decrease in blood after first morning flow. Registered
and launched over the last 18 months in France, the
UK, Spain, Italy, Portugal, the UAE and Brazil, NG
continues to expand it’s commercial rollout across key
international markets.
A
T
O
M
O
’
s
P
A
S
C
A
L
D
E
V
I
C
E
Greater than 90% reduction in blood delivery errors
90% REDUCTION
Simple to use products providing reliability and usability
in decentralised settings
1. EASY TO USE
100% reduction in buffer delivery errors
100% REDUCTION
Almost 3 minutes faster
40% FASTER
90% of participants indicated Pascal was easier to use
90% EASIER
Unique solutions provided in Atomo platforms
for Future of POC & at-home testing
Three key competitive advantages of Pascal
Platform over Standard Cassettes
Rapid results with a high degree of accuracy
Accessibility online and increasingly through retail
and via healthcare professionals
2. SPEED OF RESULTS
3. EASY TO OBTAIN & AFFORDABLE
ATOMO ANNUAL REPORT 2024
08
* as of end of Aug 2024
ATOMO ANNUAL REPORT 2024
09
Key Metrics
With runs on the board,
Atomo is making an impact
in the rapid test market
APPLICATIONS
Number of clinical
applications
successfully verified
on Atomo cassettes
PATENTS
Number of
individual granted
patents across
various countries
PASCAL USER
PREFERENCE
Users prefer
Atomo’s tests
PRODUCTION
Annual production
capacity for cassettes
REGISTRATIONS
Number of countries
with Atomo products
successfully registered
OEM
Number of
Atomo cassettes
supplied to OEM
market*
ATOMO TESTS
Number of rapid tests
manufactured and
supplied*
CAPACITY
Validated approved
HIV Self-Test capacity
17.7m
90%
45
4.5m
4m
3.6m
9
65
Technology
Atomo is dedicated to empowering individuals to lead
healthier, more informed lives through fast and accurate
testing solutions. By reimagining diagnostics, we prioritise
the user experience, ensuring that our devices are both
intuitive and reliable.
In the rapidly advancing field of point-of-care diagnostics,
Atomo has emerged as an innovator in usability, developing
integrated technologies that simplify workflows while
enhancing the accuracy of rapid testing. Our commitment to
reducing errors and minimising complexity is central to our
mission of making diagnostic testing more accessible for all.
ATOMO ANNUAL REPORT 2024
10
Digital Health: Digital Reader and Mobile
applications for error free semi-
quantitative results through image
recognition
Elion: Optimised
Workflow for Lateral
Flow Tests
Curie: All in One Sample
Pre-mixing and Delivery
Solution
ATOMO ANNUAL REPORT 2024
11
Market/Products
HIV
Atomo’s HIV business continues to gain traction across
Australia, with significant growth in the retail
pharmacy sector seen over the last year. Currently,
more than 300 pharmacies in Australia are retailing the
Atomo HIV Self-Test, a number that is growing
significantly year on year. This expansion reflects the
increasing demand for convenient, accessible HIV
testing solutions and highlights growing awareness of
the ability for people to be able to purchase a HIV
self-test in Australia.
Blooms The Chemist recently adopted the Atomo HIV
Self-Test as a core product. This designation means
that the test is now automatically distributed by
Blooms Head Office to all Blooms retail outlets across
Australia, significantly increasing its availability outside
of urban areas where access to facility-based testing is
reduced. Looking ahead, Atomo is poised for further
expansion in the Australian market. A deal with the
Independent Pharmacies of Australia Group (IPAG)
has been signed by both Atomo and IPAG. IPAG is
currently in the process of disseminating information
to individual retailers that fall under its umbrella, which
will make the Atomo HIV Self-Test available in up to
potentially 2,500 pharmacies nationwide.
Atomo is planning to launch the Atomo HIV Self-Test in
New Zealand during FY25 after successful discussions
with retail and wholesale groups. These developments
highlight Atomo’s ongoing focus on expanding access
to HIV testing in Australia & New Zealand across
private and public channels.
(For information on the progress in the Public Health
market in Australia, please refer to the Diagnostic
Landscape Section, Pages 6 and 7).
Outside of Australia, the World Health Organization
(WHO) estimates that the HIV self-testing market in
low-and middle-income countries (LMICs) could reach
a value of $US58 million by 20254. In this market,
Atomo is positioned as the only manufacturer
currently offering an African-made, prequalified HIV
self-test. Viatris has purchased 540,000 HIV self-tests
so far during 2024 and we are encouraged by progress
in this market over the last year.
In Europe, the trend post COVID, of consumer self-
tests gaining popularity in mainstream retail channels
such as pharmacies, supermarkets, and via
e-commerce platforms is further accelerating
adoption. In 2022, around half a million at-home HIV
tests were supplied in the UK5, showcasing the
growing demand for convenient and accessible health
solutions.
Atomo has supplied 250,000 tests to Newfoundland
Diagnostics over the last 18 months to support product
launch in a number of European markets and in
Colombia. The product is now stocked by Boots
Pharmacies and Tesco’s Supermarkets in the UK, as
well as in pharmacy chains in Germany and the
Netherlands. Atomo recently received a new CE Mark
approval from BSI for a Newfoundland Eastern
European language.
ATOMO ANNUAL REPORT 2024
12
Syphilis
Syphilis is a sexually transmitted infection (STI) that
progresses through different stages and can cause a
wide range of symptoms over time if left untreated.
Currently, diagnosing syphilis requires two separate
tests. The first to detect the presence of antibodies to
syphilis infection and the second, a test in the
laboratory, to distinguish between an active infection
and antibodies present from a past-treated infection.
This two-step process can cause delays, unnecessary
anxiety and loss of follow-up opportunities. In resource
limited settings where treatment is often commenced
after a positive result from an antibody test, the result
is significant over-treatment of patients with no active
syphilis and increased risk surrounding antibiotic
resistance.
Atomo is working with Burnet Diagnostics Initiative,
part of the Burnet Institute on co-development of a
lateral flow test on Pascal to diagnose active syphilis.
This test offers a significant advancement by
distinguishing active syphilis infections from past-
treated infections as well as providing unmatched
usability on an Atomo cassette.
Syphilis is a growing public health challenge and
represents a significant market opportunity across
both public and consumer health channels. Globally,
8 million new syphilis cases were reported in 2022,
causing an estimated 220,000 neonates deaths and
stillbirths6. The USA has also seen a dramatic rise, with
203,500 recorded cases, the highest number since
1950, and a 78.9% increase over five years7.
4
Unitaid
5
UK Government
6
World Health Organization
7
Center for Disease Control and Prevention
ATOMO ANNUAL REPORT 2024
13
Commercial Pipeline
Other applications
In our efforts to expand and diversify our product
offerings, Atomo is developing a range of innovative
solutions across several critical healthcare areas. First,
we are expanding our existing offerings within the
sexual health market.
In addition, we are working with partners on diagnostic
tests for monitoring chronic conditions such as ALT
(alanine aminotransferase), which helps to monitor
liver health, particularly for patients managing
conditions like fatty liver disease or those taking
medications that affect liver function.
We are also focused on developing integrated digital
health solutions by creating app-connected diagnostic
devices. These devices will provide users with real-time
data, historical health trends, and telehealth
connectivity. Furthermore, we aim to incorporate
AI-enhanced interpretation into these apps, delivering
personalised health insights and actionable
recommendations based on test results.
Our technology can also be applied to POC molecular
and microfluidic based diagnostics platforms. This
includes lab-on-a-chip solutions that perform intricate
biochemical assays within a compact format, making
them ideal for multiplex testing and real-time analysis.
Additionally, these platforms will automate sample
processing, streamlining diagnostics for both point-of-
care and home use.
Lastly, we are adapting our Pascal platform to be
compatible with traditional lateral flow cassette
formats. This re-engineering broadens its application
potential, allowing for seamless integration with
existing lateral flow diagnostics and making Atomo
solutions more attractive to potential customers.
These initiatives position Atomo at the forefront of
self-testing and chronic disease management, while
leveraging cutting-edge microfluidic technologies to
remain a leader in the diagnostic industry.
ATOMO ANNUAL REPORT 2024
14
Operational Capabilities
Currently, Atomo operates a certified manufacturing
facility in Cape Town, South Africa, producing the only
prequalified HIV self-test made on the continent for
global health use, with a current capacity to produce
up to 3 million self-tests annually. Atomo’s South
African facility is prepared to meet the growing
demand for HIV self-tests, which is projected to grow
to US$531m by 2026 at a CAGR of 30%8. This very high
growth rate is driven by convenience and privacy
offered by self-testing kits as well as growing initiatives
by public health to promote HIV testing.
Atomo’s Cape Town facility currently employs around
20 staff. Local manufacturing of diagnostics in Africa
promotes job creation, skills development, and
significantly reduces logistics costs and the
environmental impact of test distribution within the
region.
The US President’s Emergency Plan for AIDS Relief
(PEPFAR) plans to procure 15 million HIV tests from
African manufacturers by 2025, with a budget of
approximately $20 million allocated9. PEPFAR alone
allocates around $750 million annually on HIV-related
products, including tests and antiretroviral treatments.
Key facility features:
•
Fully validated and verified equipment and
processes
•
Audited and certified by WHO, TGA, BSI (ISO
13485:2016), and SAHPRA
•
Supports large batch production with flexibility for
smaller batches during scale-up
•
Production capacity supporting up to 3 million
finished tests annually.
8
Verified Market Research
9
PEPFAR
ATOMO ANNUAL REPORT 2024
15
People and Culture
Over the past year, our focus on engagement and
employee wellbeing has led to the introduction and
enhancement of several key initiatives.
Our recent employee wellbeing survey results have
provided valuable insights into our workplace
environment, underscoring our strengths and guiding
our efforts for continuous improvement. It was
pleasing to see that key survey findings show our
team has a strong sense of purpose and meaning in
their work, highlighting our success in aligning
individual roles with organisational goals related to
delivering improved health outcomes globally. There
is a clear understanding of roles and responsibilities,
and employees appreciate the flexibility they are
given in how they approach their tasks, which
enhances overall efficiency.
To build on these positive results, we have introduced
several initiatives, including an Employee Assistance
Program (EAP) offering our team 24/7 access to
support, resources and tools to help manage their
wellbeing. Our people are looking for more
opportunities to connect, recharge and give back.
To strengthen workplace relationships and enhance
connection we shared self-introductory videos at
weekly meetings across the global team.
The act of working together as a team to give back
through volunteering is a reminder of the power of
connection and shared purpose. It strengthens bonds
and helps foster a sense of community and collective
achievement that extends beyond the workplace.
These initiatives reflect our commitment to fostering
a supportive and positive work environment. We are
dedicated to continually improving our workplace
practices, based on employee feedback and
emerging needs.
What are you most passionate
about?
“I’m most passionate about
World peace, the suffering of
people around the globe hurts
me enormously. I dream of
seeing our planet full of peace
worldwide”
Dr Mohammed Imran Senior Product Development
Engineer – Melbourne, Australia
What do you like most about
working at Atomo?
“Having the opportunity to learn
and gain deeper knowledge in
the finance and manufacturing
processes”
Susan Evi Supply Chain and Finance Coordinator –
Sydney, Australia
Tell us an interesting fact about
yourself
“I wanted to be a professional
footballer, I reached 1st Division,
unfortunately due to an injury I
couldn’t continue.”
Moereed David Materials Handler – Cape Town,
South Africa
Our South African team preparing food for an
orphanage in Cape Town, South Africa
Connection:
Some excerpts from our Self introductory video
Corporate responsibility – Giving back
Volunteering at Banish - our team sorted through
146 parcels and recycled 159 kg!
ATOMO ANNUAL REPORT 2024
16
Environmental, Social & Governance
SAFE &
HEALTHY
EMPLOYMENT
Ensuring our employees
work in a safe
environment with
opportunities for
training and growth,
addressing health and
safety concerns as they
arise and mitigating the
risk of re-occurrence of
incidents
The following sustainability issues
are most material to our business
and are important to key
stakeholders such as investors,
consumers, customers, suppliers,
governments and employees.
PRODUCT
QUALITY
& SAFETY
Choosing materials from
quality sources,
complying with ISO
13485 Medical Devices
Quality Management,
and delivering safe
products to customers
and investigating all
concerns to ensure our
products maintain the
highest quality
CORRUPTION &
BRIBERY
Ethical business
practices relate to every
aspect of Atomo's
business, from
identifying product
sources, through the
development of
diagnostics, transactions
with regulatory bodies
and sale to customers
RESOURCE
USE & WASTE
MANAGEMENT
Includes energy usage
during manufacture and
logistics, water usage and
waste as a by-product of
manufacture, with
particular consideration
given to the fact that the
products are classified as
medical waste upon use
ETHICAL
PURCHASING &
HUMAN RIGHTS
IN THE SUPPLY
CHAIN
Responsibility to
partners to ensure our
product line is free from
human rights concerns
such as forced labour
and trafficking, unsafe
labour standards and
unfair treatment
ENVIRONMENTAL
REGULATION
Focused on meeting or
exceeding environmental
regulation across its
operations globally
PRODUCT
PRICING &
ACCESSIBILITY
Strategies and initiatives
designed to provide
more affordable
diagnostic pricing and
accessibility to products
for patients through
development,
manufacture and
marketing of high-
quality generic and
branded products, with a
particular focus on
accessible diagnostics
for the global health and
Lower and Middle
Income markets
COMPLIANCE
Responsibility to drive
compliance with legal
and regulatory
requirements applicable
to our global business.
Includes development of
policies and controls,
communication and
training, oversight and
continuous improvement
ATOMO ANNUAL REPORT 2024
17
ATOMO ANNUAL REPORT 2024
18
ATOMO ANNUAL REPORT 2024
19
Financial
Report
2024
Atomo Diagnostics Limited
ABN 37 142 925 684
Annual Report 30 June 2024
Atomo Diagnostics Limited
Directors' report
For the period ended 30 June 2024
Principal activities
The principal activities of the group during the course of the year were the development and sale of medical devices.
There were no significant changes in the nature of the activities of the group during the year.
Review of operations
The loss for the group after providing for income tax amounted to AUD6,847,803 (30 June 2023: AUD9,957,632).
Revenue of approximately $4.1m comprised $3.2m for HIV sales, $730k for OEM sales and remaining $120k for
development fees and other revenue. Overall revenue increased by 61% when compared to FY23 revenue results, driven
by the growing demand for Atomo’s HIV Self-Tests globally.
Cash and cash equivalents at 30 June 2024 amounted to $3.69m compared to $6.47m as at 30 June 2023.
Ongoing measures continued to be undertaken during the period to reduce operating expenditure for the group. Overall
operating expenses reduced year on year by $2m, equivalent to 19% when compared to the prior period (excluding one-
off inventory write offs & impairment of intangibles in comparative periods). With investment already made in the
development and commercialisation of Atomo's novel patent-protected technology, and with manufacturing capacity
installed and validated, capital expenditure has reduced very significantly. We continue to focus on investing prudently
in key areas of the business to support market facing and revenue generating activities. The business is in a prime
position to materially increase sales revenue without requiring corresponding increases in underlying operating costs.
Business development activities continue to focus on re-establishing and growing our OEM customer base, with particular
focus on the US market following Lumos Diagnostics successfully obtaining a 510(k) clearance for its FebriDx test on the
Atomo Pascal device. NG Biotech have launched their blood pregnancy self-test in a number of European countries and in
Brazil, further validating the regulatory scope of important existing markets where Pascal supports clearance for self-
testing.
Significant changes in the state of affairs
There were no significant changes in the state of affairs of the group during the financial period.
Matters subsequent to the end of the financial period
No matter or circumstance has arisen since 30 June 2024 that has significantly affected, or may significantly affect the
group's operations, the results of those operations, or the group's state of affairs in future financial years.
Likely developments and expected results of operations
With approximately $3.69m of cash at bank and no debt, Atomo continues to pursue its key priorities while remaining
focused on conserving capital over the medium term.
●
Continued rollout of HIV self-testing globally, including the UK where the test is now available in Boots and Tesco's
and into Eastern Europe, as well supporting national scale up of HIV self-testing via government funded programs.
●
Focus on the expansion of Atomo's point-of-care (POC) cassette supply business, especially in the US market where
the recent FDA 510(k) clearance obtained by Lumos Diagnostics for their test on the Atomo Pascal device opens a
pathway for Atomo product and for new Diagnostics partners seeking improved user-friendly solution for POC and
self-test markets.
●
Growing the emerging development services business where Atomo is being paid to develop products and custom
solutions for partners seeking access to Atomo technology and products.
Business risk
The group has identified the following material business risks that may cause its revenue and profitability to decline and
are important to key stakeholders such as investors, consumers, customers, supplier, governments and employees.
●
Regulatory risk: The group sells medical devices and finished products that require regulatory approvals to be
maintained (for existing approved products), and to be obtained (for new products) in multiple jurisdictions. This
includes obtaining and maintaining product approvals from the TGA in Australia, the FDA in the US, Health Canada in
Canada, comparable bodies in Asia and South America, the World Health Organisation for LMIC global health markets,
and compliance with the IVDD and IVDR regimes in Europe. There are risks associated with these regulatory approvals
that may impact on the business should approvals be withdrawn for existing products or not obtained for new
products.
●
Product quality and safety: Should quality or safety issues arise with Atomo's products, there is the potential for
negative financial and or reputational impacts. To mitigate this risk Atomo sources materials from quality suppliers,
complies with ISO 13485 Medical Devices Quality Management, and delivers safe products to customers. Atomo aims
to adhere to or exceed strict regulatory standards in all jurisdictions that it serves, and investigates all concerns to
ATOMO ANNUAL REPORT 2024
20
Atomo Diagnostics Limited
Directors' report
For the period ended 30 June 2024
ensure our products maintain the highest quality. We are frequently inspected by independent regulatory authorities
auditing compliance with these standards.
●
Compliance: Responsibility to drive compliance with legal and regulatory requirements applicable to our global
business. Includes development of policies and controls, communication and training, oversight and continuous
improvement. Consequently, compliance affects every aspect of what we do, to deliver quality products to
consumers.
●
Supply chain: Responsibility to partners to ensure our product line is free from human rights concerns such as
forced labour and trafficking, unsafe labour standards and unfair treatment. Atomo relies on third party
manufacturers in certain areas and as such has potential exposure to supply chain disruption risks. The company
takes steps to stay closely engaged with its supply chain and ensures sufficient stock on hand to mitigate this risk.
●
Employees and skilled labour: Atomo's business relies on key qualified personnel. Ensuring our employees are
appropriately remunerated and work in a safe environment, which meets or exceeds relevant regulatory
expectations, addresses health and safety concerns as they arise and mitigates the risk of reoccurrence of incidents.
●
Operational risk: Atomo has international operations, including a manufacturing facility in South Africa and as such
is potentially exposed to additional risk from political, legal, economic and regulatory risk specific to those locations.
●
Atomo operates in a competitive industry: Strategies and initiatives designed to provide diagnostics at
competitive prices to ensure it can develop, manufacture and market high-quality generic and branded products, with
a particular focus on accessible diagnostics for the global health and Lower and Middle Income markets.
●
Corruption and bribery: Business must be conducted with transparency, and free from unethical persuasion.
Ethical business practices relate to every aspect of Atomo's business, from identifying product sources, through the
development of diagnostics, transactions with regulatory bodies and sale to customers.
●
Resource use and waste management: Includes energy usage during manufacture and logistics, water usage and
waste as a by-product of manufacture, with particular consideration given to the fact that the products are classified
as medical waste upon use.
●
Climate risk: The board is considering on an ongoing basis the potential response to climate risk and considering
potential implementation of a formal review and policy response in future years.
The Board believes that the group has adequate systems in place for the management of its exposure to business risk.
The group's operations are not subject to any significant environmental regulation under Australian Commonwealth or
State law.
Information on directors
Name:
John Keith
Title:
Non-Executive Chair
Experience and expertise:
John Keith has served as a Non-Executive Director of Atomo since December 2011
and became Chair in 2014.
Mr Keith is one of the Managing Directors at BNP Paribas, establishing and leading its
financial institutions coverage team. Prior to joining BNP Paribas in 2011, Mr Keith
held country management and senior business and coverage positions for Nomura
Securities in Sydney and Hong Kong. His career comprises working with supranational,
sovereign and institutional clients across all areas of investment and institutional
banking.
Mr Keith holds a Bachelor of Arts (Hons) majoring in Economic History from the Victoria
University of Wellington, a Master of Applied Finance from Macquarie University and a
Global Executive MBA from the University of Sydney.
Other current directorships:
Nil
Former directorships (last 3 years): Nil
Special responsibilities:
Member of the Audit and Risk Committee and Member of the People, Culture
Nomination & Remuneration Committee.
Interests in shares:
3,261,056
Interests in options:
Nil
Contractual rights to shares:
Nil
ATOMO ANNUAL REPORT 2024
21
Atomo Diagnostics Limited
Directors' report
For the period ended 30 June 2024
Name:
John Kelly
Title:
Managing Director and CEO
Experience and expertise:
John Kelly is the Managing Director and CEO of Atomo.
For 25 years Mr Kelly has focused on developing and commercialising innovative
healthcare products that enhance usability and performance, having started with CR
Bard in Europe developing Class III implantable cardiology products.
Prior to co-founding Atomo in 2010, Mr Kelly acted as the Chief Operating Officer
(COO) of Unilife Corporation, which was previously an ASX-listed company (ASX:UNS)
and subsequent to his departure, a Nasdaq listed company (NASDAQ:UNIS). At Unilife
Corporation, he led the global operations team from 2005 to 2008, developing ‘Unifill’,
the world’s first glass prefilled drug delivery device with integrated auto retract safety
feature, and this technology was successfully licensed to Sanofi Aventis. Prior to
joining Unilife in 2005, Mr Kelly spent five years at ResMed where he led the New
Product Implementation Group and managed the development of the ground-breaking
Mirage Swift and Activa mask systems.
Mr Kelly holds an Honours degree in Mechanical Engineering from the University of
Liverpool, a Master’s degree in Manufacturing Systems Engineering from Queen’s
University Belfast, and an Executive MBA from the University of Sydney, where he was
awarded the Business School’s inaugural ‘Excellence in Leadership’ scholarship.
Other current directorships:
Nil
Former directorships (last 3 years): Nil
Special responsibilities:
Nil
Interests in shares:
72,490,248
Interests in options:
666,666
Contractual rights to shares:
Nil
Name:
Paul Kasian
Title:
Non-Executive Director
Experience and expertise:
Dr Kasian is an experienced executive director with demonstrated success in both
domestic and international companies encompassing senior leadership, strategy,
investment and risk roles.
His other roles have included Chief Investment Officer and Head of Global Financials
at HSBC Asset Management, Founding Director of Accordius and Founding Director of
Wallara Asset Management.
He holds a PhD in Microbiology and a Master of Business Administration, both from
the University of Melbourne, and is a Graduate Member of the Australian Institute of
Company Directors.
Other current directorships:
Dr Kasian is currently Non-Executive Director (appointed 31 August 2016) and Chair
(appointed 15 September 2018) of IODM Limited (ASX: IOD). He was appointed a Non
Executive Chairman of Diamond Key International on 7 December 2022. He is also
Non Executive Chairman of Sedarex (appointed July 2023).
Former directorships (last 3 years): Non-Executive Director of Eco Systems Ltd
Special responsibilities:
Chair of the Audit and Risk Committee and member of the People, Culture, Nomination
& Remuneration Committee.
Interests in shares:
100,000
Interests in options:
Nil
Contractual rights to shares:
Nil
ATOMO ANNUAL REPORT 2024
22
Atomo Diagnostics Limited
Directors' report
For the period ended 30 June 2024
Name:
Deborah Neff
Title:
Non-Executive Director
Experience and expertise:
A veteran of the life sciences industry, Deborah has spent most of her career building
market-leading global businesses. As principal of DJN Consulting, LLC based in the
San Francisco Bay Area, Deborah currently works with several privately held
healthcare start-up companies providing strategic business advice and mentoring to
the executive management teams. Previously was CEO of Evanostics, LLC, Pathwork
Diagnostics Inc, and COO at Complete Genomics following a 15 year career with
Becton Dickinson, where she last served as President of BD Biosciences, a major global
business unit of the company.
She is an executive Trustee and Chair of the Foundation Board at the University of
California, Davis.
She serves as an independent Director and member of the Governance committee for
Guide Dogs for the Blind, Inc. a non-profit organisation.
Deborah holds a Bachelor in Science degree from the University of California, Davis.
Other current directorships:
Non-Executive Director and a member of the audit and nominating/governance
committees at Cytek Biosciences, Inc.
Former directorships (last 3 years): Nil
Special responsibilities:
Chair of the People, Culture, Nomination & Remuneration Committee and member of
the Audit and Risk Committee
Interests in shares:
Nil
Interests in options:
Nil
Contractual rights to shares:
Nil
Name:
Cheri Walker
Title:
Non-Executive Director
Experience and expertise:
Dr. Walker is an executive with more than twenty-five years of experience working
with life science and diagnostic companies. Dr. Walker is currently the Chief Executive
Officer of Zeta Corporation. She has previously held senior executive positions at
Abcam; Charles River Labs; Qiagen, and Life Technologies, now part of ThermoFisher.
Dr. Walker holds a BA in Biology from Swarthmore College and a Ph.D. in Human and
Molecular Genetics from Baylor College.
Other current directorships:
Nil
Former directorships (last 3 years): Director CellIDx, Director BrickBio, Director of Rhinostics
Special responsibilities:
Member of the Audit and Risk Committee
Interests in shares:
Nil
Interests in options:
Nil
Contractual rights to shares:
Nil
ATOMO ANNUAL REPORT 2024
23
Atomo Diagnostics Limited
Directors' report
For the period ended 30 June 2024
Name:
Curt LaBelle
Title:
Non-Executive Director
(Resigned on 20 December 2023)
Experience and expertise:
Curt LaBelle has served as a Non-Executive Director of Atomo since October 2016.
Dr LaBelle has been actively involved in the healthcare industry for over 20 years,
both operationally and as an investor. Previously, Dr LaBelle was President at the
Global Health Investment Fund (GHIF), a social impact investment fund, which
manages approximately US$108 million backed by the Gates Foundation, JP Morgan
and others. He also serves as a director on the boards of Z Optics, Revelation Bio and
Atticus Medical.
Prior to joining GHIF, Dr LaBelle was Managing Director at Tullis Health Investors and
Vice President at Investor Growth Capital. He is a former chairman of Impulse
Monitoring (acquired by Nuvasive), Exagen Inc. (NASDAQ:XGN) and a former director
of Sirion Therapeutics (products acquired by Alcon and Bausch), SafeOp Surgical
(acquired by AlphaTec) and KAI Pharmaceuticals (acquired by Amgen).
As Dr LaBelle is President at GHIF, a substantial shareholder of Atomo, Dr LaBelle is
not considered to be an independent Director.
Dr LaBelle holds a Bachelor of Economics from Brigham Young University, and MD and
MBA degrees from Columbia University.
Other current directorships:
Director of Eyenovia Inc. (NASDAQ:EYEN)
Former directorships (last 3 years): Former chairman of Exagen Inc. (NASDAQ: XGN)
Special responsibilities:
Nil
Interests in shares:
Nil
Interests in options:
Nil
Contractual rights to shares:
Nil
'Other current directorships' quoted above are current directorships for listed entities only and excludes directorships of
all other types of entities, unless otherwise stated.
Company Secretary
Mr Watkins is a highly qualified company secretary and member of global financial and corporate services provider, Vistra
(Australia) Pty Ltd. He has more than a decade of experience, specialising in the provision of services to ASX-listed and
unlisted public companies operating in the mining, biotechnology, and industrial sectors.
Mr Watkins is also a member of the Institute of Chartered Accountants of Australia and New Zealand and possesses a
Bachelor of Business from Swinburne University of Technology.
Mr Watkins was appointed as Atomo’s Company Secretary on 9 June 2024. (Maria Clemente held the position from 1
March 2023 to 4 March 2024 and Sally McDow held the position from 5 March 2024 to 8 June 2024).
Meetings of directors
The number of meetings of the company's Board of Directors ('the Board') and of each Board committee held during the
period ended 30 June 2024, and the number of meetings attended by each director were:
Full Board
People, Culture, Nomination
and Remuneration Committee Audit and Risk Committee
Attended
Held2
Attended
Held2
Attended
Held2
John Keith
7
7
3
3
3
3
John Kelly
7
7
-
-
-
-
Paul Kasian
7
7
3
3
3
3
Deborah Neff
6
7
3
3
3
3
Cheri Walker
7
7
-
-
2
3
Curt LaBelle1
1
4
-
-
-
-
1 Resigned on 20 December 2023
2 Represents the number of meetings when the director was eligible to attend as a member of the relevant committee.
ATOMO ANNUAL REPORT 2024
24
Atomo Diagnostics Limited
Directors' report
For the period ended 30 June 2024
Remuneration report (audited)
The remuneration report details the key management personnel remuneration arrangements for the group, in accordance
with the requirements of the Corporations Act 2001 and its Regulations.
Key management personnel are those persons having authority and responsibility for planning, directing and controlling
the activities of the entity, directly or indirectly, including all directors.
The key management personnel of the group during the financial year consisted of the following Directors of the
Company:
●
John Keith – Non-Executive Chair
●
John Kelly – Managing Director and CEO
●
Paul Kasian – Non-Executive Director
●
Deborah Neff – Non-Executive Director
●
Cheri Walker – Non-Executive Director
●
Curt LaBelle – Non-Executive Director (Resigned on 20 December 2023)
And the following executives:
●
William Souter – Chief Financial Officer (Resigned on 13 December 2023)
●
Chandra Sukumar – Chief Operating Officer
The remuneration report is set out under the following main headings:
●
Remuneration Governance
●
Principles used to determine the nature and amount of remuneration
●
Details of remuneration
●
Service agreements
●
Share-based compensation
●
Additional disclosures relating to key management personnel
●
Statutory performance indicators
Remuneration Governance
To assist the Board in fulfilling its responsibilities in respect of remuneration and nomination related matters, the Board
established a People, Culture, Nomination and Remuneration Committee to monitor and make recommendations to the
Board in relation to:
(i)
recruitment, retention and termination policies and practices for Executive Directors and direct reports to the Managing
Director and the alignment of the policies and practices with the promotion and sustainment of a culture aligned with
Atomo's values, the promotion of long term sustainable success and the achievement of the company's business
objectives;
(ii)
people strategies and practices which will instil and reinforce the Company’s purpose and values, ensure health and
wellbeing (physical and mental) and support the achievement of the company's long term business objectives;
(iii) the development of, and progress in meeting, the Company’s diversity objectives; and
(iv) the Company’s performance appraisal processes for the Managing Director and the Managing Director’s direct reports,
the Board, Board Committees and individual Non-Executive Directors.
During the prior financial year, this Committee was renamed into the ‘People, Culture, Nomination and Remuneration
Committee’ (PCNRC) and the Committee Charter was amended to formally delegate the following Board’s nomination
responsibilities to PCNRC.
The members of the PCNRC at the date of this report are:
●
Deborah Neff (Chair)
●
John Keith
●
Paul Kasian
The role and responsibilities, composition, structure and membership requirements of the PCNRC are documented in the
People, Culture, Nomination and Remuneration Committee Charter which is available on Atomo’s website at:
https://atomodiagnostics.com/governance/. The Committee Charter provides that the Committee should comprise at
least three members, all of whom are Non-Executive Directors and a majority of whom are independent Directors and the
Chair of the Committee should be an independent Director who is not Chair of the Board. All of the current members of
the PCNRC have been assessed by the Board as being independent Non-Executive Directors and the Chair of the
Committee is not Chair of the Board.
ATOMO ANNUAL REPORT 2024
25
Atomo Diagnostics Limited
Directors' report
For the period ended 30 June 2024
Principles used to determine the nature and amount of remuneration
Non-executive directors remuneration
Each of the Non-Executive Directors has entered into appointment letters with Atomo confirming the terms of their
appointment and their roles and responsibilities. The appointment letters are on standard commercial terms.
The Chair, John Keith, receives an annual fee of $130,000 and each Non-Executive Director receives an annual fee of
$50,000.
Each Chair of a Board Committee receives an additional amount of $20,000 per annum. The Chair of the Audit and Risk
Committee is Paul Kasian. The Chair of the People, Culture Nomination and Remuneration Committee is Deborah Neff.
Deborah Neff is also director of Atomo US, Inc effective 30 March 2022, for which she receives an annual fee of $20,000.
Directors may also be reimbursed for expenses properly incurred by them in dealing with the Company’s business or in
carrying out their duties as a Director.
Under the Constitution, the Board decides the amount paid to each Non-Executive Director as remuneration for their
services as a Director. However, under the ASX Listing Rules, the total amount of fees paid to all Non-Executive Directors
for their services must not exceed in aggregate in any financial year the amount fixed by the Company’s shareholders in
general meeting. This amount has been fixed initially in the Company’s Constitution at $500,000 per annum in aggregate
and may be varied by ordinary resolution in a general meeting.
Executive remuneration
The group aims to reward executives based on their position and responsibility, with a level and mix of remuneration
which has both fixed and variable components.
The executive remuneration and reward framework has four components:
●
base pay
●
short-term performance incentives
●
share-based payments
●
other remuneration such as superannuation and long service leave
The combination of these comprises the executive's total remuneration.
Fixed remuneration, consisting of base salary, superannuation and non-monetary benefits, are reviewed annually by the
People, Culture, Nomination and Remuneration Committee based on individual and business unit performance, the overall
performance of the group and comparable market remunerations.
Executives may receive their fixed remuneration in the form of cash or other benefits where it does not create any
additional costs to the group and provides additional value to the executive.
The short-term incentives ('STI') program is designed to align the targets of the business units with the performance
hurdles of executives. STI payments are granted to executives based on specific annual targets and key performance
indicators ('KPI's') being achieved. Details of STIs paid to executives during the year can be found under the heading
"Amounts of remuneration" below.
The long-term incentives ('LTI') include long service leave and share-based payments. Further details in relation to
Atomo’s Employee Share Option Plan ('ESOP') can be found under the heading “Share-based compensation” below.
Voting and comments made at the company's 2 November 2023 Annual General Meeting ('AGM')
At the 2 November 2023 AGM, 32.63% of the votes received supported the adoption of the remuneration report for the
year ended 30 June 2023. As such the Company received its first strike in relation to its remuneration report.
The Board acknowledges that it received its first strike at its 2023 Annual General Meeting of shareholders. In response
to this strike received from shareholders (while there was no specific feedback received in relation to remuneration) the
Company advises it has taken the following steps.
The Company has not materially increased remuneration of its KMP’s (or larger employee base) during the period. It
applied relevant CPI increases to remuneration to reflecting inflation. Non Executive Director fees remain unchanged from
when the Company listed.
The Company is not intending to issue any LTI’s to KMP’s for the financial year 2025.
ATOMO ANNUAL REPORT 2024
26
Atomo Diagnostics Limited
Directors' report
For the period ended 30 June 2024
The Directors fully acknowledge last year’s strike and would like to confirm to its shareholders that the Company’s
remuneration practices remain a focus for the Board in light of the Company’s performance, while continuing to consider
market benchmarking. The Company welcomes engagement from shareholders on the remuneration of the Directors and
KMP’s.
Details of remuneration
Amounts of remuneration
Details of the remuneration of key management personnel of the group are set out in the following tables.
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Share-
based
payments
Cash salary
Cash
Non-
Super-
Long
service
Equity-
and fees
bonus
monetary
annuation
leave
settled
Total
30 June 2024
AUD
AUD
AUD
AUD
AUD
AUD
AUD
Non-Executive Directors:
John Keith
130,000
-
-
-
-
-
130,000
Paul Kasian
63,063
-
-
6,937
-
-
70,000
Deborah Neff
90,000
-
-
-
-
-
90,000
Cheri Walker
50,000
-
-
-
-
-
50,000
Curt LaBelle1
25,000
-
-
-
-
-
25,000
Executive Directors:
John Kelly
406,056
35,000
-
27,399
8,022
-
476,477
Other Key Management
Personnel:
William Souter2
143,679
-
-
12,285
-
5,858
161,822
Chandra Sukumar
243,395
25,000
-
27,399
2,636
5,492
303,922
1,151,193
60,000
-
74,020
10,658
11,350
1,307,221
1 Resigned on 20 December 2023
2 Resigned on 13 December 2023
ATOMO ANNUAL REPORT 2024
27
Atomo Diagnostics Limited
Directors' report
For the period ended 30 June 2024
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Share-
based
payments
Cash salary
Cash
Non-
Super-
Long
service
Equity-
and fees
bonus
monetary
annuation
leave
settled
Total
30 June 2023
AUD
AUD
AUD
AUD
AUD
AUD
AUD
Non-Executive Directors:
John Keith
130,000
-
-
-
-
-
130,000
Paul Kasian
63,348
-
-
6,652
-
-
70,000
Deborah Neff
88,330
-
-
-
-
-
88,330
Cheri Walker
31,250
-
-
-
-
-
31,250
Curt LaBelle1
50,000
-
-
-
-
-
50,000
Executive Directors:
John Kelly
417,050
79,200
-
25,292
5,614
14,861
542,017
Other Key Management
Personnel:
Chandra Sukumar
243,197
49,250
-
25,292
6,553
-
324,292
William Souter2
290,411
57,600
-
25,292
1,585
11,889
386,777
1,313,586
186,050
-
82,528
13,752
26,750
1,622,666
1 Resigned on 20 December 2023
2 Resigned on 13 December 2023
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Fixed remuneration
At risk - STI
At risk - LTI
Name
30 June 2024 30 June 2023 30 June 2024 30 June 2023 30 June 2024 30 June 2023
Non-Executive Directors:
John Keith
100%
100%
-
-
-
-
Paul Kasian
100%
100%
-
-
-
-
Deborah Neff
100%
100%
-
-
-
-
Cheri Walker
100%
100%
-
-
-
-
Curt LaBelle1
100%
100%
-
-
-
-
Executive Directors:
John Kelly
93%
82%
7%
15%
-
3%
Other Key Management
Personnel:
Chandra Sukumar
90%
85%
8%
15%
2%
-
William Souter2
96%
82%
-
15%
4%
3%
1 Resigned on 20 December 2023
2 Resigned on 13 December 2023
Cash bonuses are dependent on meeting defined performance measures. The maximum bonus values are established at
the start of each financial year and amounts payable to KMPs are determined by the Board in consultation with the
People, Culture, Nomination and Remuneration Committee.
ATOMO ANNUAL REPORT 2024
28
Atomo Diagnostics Limited
Directors' report
For the period ended 30 June 2024
The proportion of the cash bonus paid/payable or forfeited is as follows:
Cash bonus paid/payable
Cash bonus forfeited
Name
30 June 2024 30 June 2023 30 June 2024 30 June 2023
Non-Executive Directors:
John Keith
-
-
-
-
Paul Kasian
-
-
-
-
Deborah Neff
-
-
-
-
Cheri Walker
-
-
-
-
Curt LaBelle1
-
-
-
-
Executive Directors:
John Kelly
27%
60%
73%
40%
Other Key Management Personnel:
Chandra Sukumar
33%
60%
67%
40%
William Souter2
-
60%
-
40%
1 Resigned on 20 December 2023
2 Resigned on 13 December 2023
Service agreements
Remuneration and other terms of employment for key management personnel are formalised in service agreements.
Details of these agreements are as follows:
Name:
John Kelly
Title:
Managing Director
Agreement commenced:
1 October 2011
Term of agreement:
Not specified - agreement has been revised since commencement date of service
Details:
Annual salary of $440,000 (including superannuation). The fixed remuneration will
alter by any changes in the compulsory superannuation contribution that Atomo
Diagnostics Limited is required to make. Plus a cash bonus of up to 30% of gross
salary (subject to the satisfaction of performance criteria), to be reviewed annually by
the People, Culture, Nomination & Remuneration Committee.
John Kelly is entitled to participate in the Company’s share and option plans. Please
refer to the section titled “Share-based compensation” for further details.
Ten (10) week termination notice by either party however this notice period does not
apply if the employment is terminated for serious and wilful misconduct or any conduct
by John Kelly that amounts to fraud, theft, violence, harassment, gross negligence or
any other action that may otherwise bring the Company into disrepute.
Name:
Chandra Sukumar
Title:
Chief Operating Officer
Agreement commenced:
31 October 2016
Term of agreement:
Not specified - agreement has been revised since commencement date of service
Details:
Annual salary of $250,000 (excluding superannuation). The fixed remuneration will
alter by any changes in the compulsory superannuation contribution that Atomo
Diagnostics Limited is required to make. Plus a cash bonus of up to 30% of base salary
(subject to the satisfaction of performance criteria), to be reviewed annually by the
People, Culture & Remuneration Committee.
Chandra Sukumar is entitled to participate in the Company’s share and option plans.
Please refer to the section titled “Share-based compensation” for further details.
Ten (10) week termination notice by either party however this notice period does not
apply if the employment is terminated for serious and wilful misconduct or any conduct
by Chandra Sukumar that amounts to fraud, theft, violence, harassment, gross
negligence or any other action that may otherwise bring the Company into disrepute.
ATOMO ANNUAL REPORT 2024
29
Atomo Diagnostics Limited
Directors' report
For the period ended 30 June 2024
Name:
William Souter
Title:
Chief Financial Officer
Agreement commenced:
10 March 2020 (Resigned on 13 December 2023)
Term of agreement:
Not specified - agreement has been revised since commencement date of service
Details:
Annual salary of $320,000 (including superannuation). The fixed remuneration will
alter by any changes in the compulsory superannuation contribution that Atomo
Diagnostics Limited is required to make. Plus a cash bonus of up to 30% of gross
salary (subject to the satisfaction of performance criteria), to be reviewed annually by
the People, Culture & Remuneration Committee.
William Souter is entitled to participate in the Company’s share and option plans.
Please refer to the section titled “Share-based compensation” for further details.
Sixteen (16) week termination notice by either party however this notice period does
not apply if the employment is terminated for serious and wilful misconduct or any
conduct by William Souter that amounts to fraud, theft, violence, harassment, gross
negligence or any other action that may otherwise bring the Company into disrepute.
Share-based compensation
Option plan details
The Board has exercised its discretion to allocate the following options to management in prior periods as part of the
Company's remuneration scheme to reward the diligent execution of the corporate strategy and to ensure retention of
the key talent needed to deliver strategic outcome in the interest of shareholders.
As at the date of this report, the Company had on issue 941,666 options to KMPs under the post-IPO option plan. The
terms and conditions of each grant of options over ordinary shares affecting remuneration of directors and other key
management personnel in this financial period or future reporting years are as follows:
Number of
Fair value
options
Vesting date and
per option
Name
granted
Grant date
exercisable date Expiry date
Exercise price at grant date
John Kelly
666,666 25 August 2022
25 August 2022
14 April 2025
AUD0.250
AUD0.073
Chandra Sukumar
275,000 22 August 2023
22 August 2023 22 August 2026
AUD0.047
AUD0.030
All options were granted over unissued fully paid ordinary shares in the Company. Options granted carry no dividend or
voting rights.
Additional disclosures relating to key management personnel
Shareholding
The number of shares in the company held during the financial period by each director and other members of key
management personnel of the group, including their personally related parties, is set out below:
Balance at
Received
Balance at
the start of
as part of
(Disposals)/
the end of
the period remuneration
Additions
other
the period
Ordinary shares
John Keith
3,261,056
-
-
-
3,261,056
John Kelly
72,490,248
-
-
-
72,490,248
Paul Kasian
100,000
-
-
-
100,000
Deborah Neff
-
-
-
-
-
Cheri Walker
-
-
-
-
-
Curt LaBelle1 & 2
65,051,280
-
-
(65,051,280)
-
Chandra Sukumar
170,000
-
-
-
170,000
William Souter3 & 4
250,000
-
-
(250,000)
-
141,322,584
-
-
(65,301,280)
76,021,304
ATOMO ANNUAL REPORT 2024
30
Atomo Diagnostics Limited
Directors' report
For the period ended 30 June 2024
1 Includes shares held by Global Health Investment Fund LLC. Curt LaBelle resigned on 20 December 2023
2 Curt LaBelle resigned on 20 December 2023. To this effect, shares held by Mr LaBelle and Global Health Investment
Fund LLC is no longer considered related party share holdings in the company at 30 June 2024. Shares are included in
Disposals/Other
3 Resigned on 13 December 2023
4 William Souter resigned on 13 December 2023. To this effect, shares held by Mr Souter is no longer considered related
party shares holdings in the company at 30 June 2024. Shares are included in Disposals/Other
Option holding
The number of options over ordinary shares in the company held during the financial period by each director and other
members of key management personnel of the group, including their personally related parties, is set out below:
Balance at
Expired/
Balance at
the start of
forfeited/
the end of
the period
Granted
Exercised
other
the period
Options over ordinary shares
John Kelly
999,999
-
-
(333,333)
666,666
Curt LaBelle1
-
-
-
-
-
Paul Kasian
-
-
-
-
-
Deborah Neff
-
-
-
-
-
Cheri Walker
-
-
-
-
-
William Souter2
1,066,667
293,333
-
(1,360,000)
-
Chandra Sukumar
-
275,000
-
-
275,000
2,066,666
568,333
-
(1,693,333)
941,666
1 Includes shares held by Global Health Investment Fund LLC. Curt LaBelle resigned on 20 December 2023
2 Resigned on 13 December 2023
3 William Souter resigned on 13 December 2023. To this effect options, held by Mr Souter are no longer considered
related party options holdings in the company at 30 June 2024. Options are included in Disposals/Other
Statutory performance indicators
The group aims to align its executive remuneration to its strategic and business objectives and the creation of
shareholder wealth. The table below shows measures of the group’s financial performance over the last three years as
required by the Corporations Act 2001. However, these are not necessarily consistent with the measures used in
determining the variable amounts of remuneration to be awarded to KMPs. As a consequence, there may not always be a
direct correlation between the statutory key performance measures and the variable remuneration awarded.
Measure
2024
2023
2022
Loss for the year attributable to the Company ($)
(6,847,803)
(9,957,632)
(5,706,854)
Basic earnings per share (cents)
(1.08)
(1.74)
(1.00)
Dividend payments
-
-
-
Dividend payout ratio
-
-
-
Increase / (decrease) in share price
14%
(61%)
(70%)
Total KMP incentives as a percentage of profit / (loss) for the year (19.1%)
(16.3%)
(28.8%)
This concludes the remuneration report, which has been audited.
ATOMO ANNUAL REPORT 2024
31
Atomo Diagnostics Limited
Directors' report
For the period ended 30 June 2024
Shares under option
Unissued ordinary shares of Atomo Diagnostics Limited under option at the date of this report are as follows:
Exercise
Number
Options
Expiry date
price
under option
Post- IPO options
14 April 2025
AUD0.250
1,733,332
Post- IPO options
14 April 2026
AUD0.250
533,334
Employee share options
22 August 2026
AUD0.047
818,333
Employee share options
1 July 2026
AUD0.035
2,120,000
Employee share options
1 July 2027
AUD0.035
3,180,000
8,384,999
No person entitled to exercise the options had or has any right by virtue of the option to participate in any share issue of
the Company or of any other body corporate.
Shares issued on the exercise of options
There were no ordinary shares of Atomo Diagnostics Limited issued on the exercise of options during the period ended 30
June 2024 and up to the date of this report.
Indemnity and insurance of officers
The company has indemnified the directors and executives of the company for costs incurred, in their capacity as a
director or executive, for which they may be held personally liable, except where there is a lack of good faith.
During the financial period, the company paid a premium in respect of a contract to insure the directors and executives of
the company against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits
disclosure of the nature of the liability and the amount of the premium.
Indemnity and insurance of auditor
The company has not, during or since the end of the financial period, indemnified or agreed to indemnify the auditor of
the company or any related entity against a liability incurred by the auditor.
During the financial period, the company has not paid a premium in respect of a contract to insure the auditor of the
company or any related entity.
Proceedings on behalf of the company
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on
behalf of the company, or to intervene in any proceedings to which the company is a party for the purpose of taking
responsibility on behalf of the company for all or part of those proceedings.
Non-audit services
Details of the amounts paid or payable to the auditor for non-audit services provided during the financial year by the
auditor are outlined in note 22 to the financial statements.
The directors are satisfied that the provision of non-audit services during the financial period, by the auditor (or by
another person or firm on the auditor's behalf), is compatible with the general standard of independence for auditors
imposed by the Corporations Act 2001.
The directors are of the opinion that the services as disclosed in note 22 to the financial statements do not compromise
the external auditor's independence requirements of the Corporations Act 2001 for the following reasons:
●
all non-audit services have been reviewed and approved to ensure that they do not impact the integrity and objectivity
of the auditor; and
●
none of the services undermine the general principles relating to auditor independence as set out in APES 110 Code
of Ethics for Professional Accountants issued by the Accounting Professional and Ethical Standards Board, including
reviewing or auditing the auditor's own work, acting in a management or decision-making capacity for the company,
acting as advocate for the company or jointly sharing economic risks and rewards.
ATOMO ANNUAL REPORT 2024
32
Atomo Diagnostics Limited
Directors' report
For the period ended 30 June 2024
Officers of the company who are former partners of BDO
There are no officers of the company who are former partners of BDO.
Rounding of Amounts
The group is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian Securities and
Investments Commission, relating to 'rounding-off'. Amounts in this report have been rounded off in accordance with that
Corporations Instrument to the nearest dollar.
Auditor's independence declaration
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out
immediately after this directors' report.
Auditor
BDO Audit Pty Ltd continues in office in accordance with section 327 of the Corporations Act 2001.
This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations Act
2001.
On behalf of the directors
___________________________
John Keith
Chair
29 August 2024
Sydney
ATOMO ANNUAL REPORT 2024
33
Level 11, 1 Margaret St
Sydney NSW 2000
Australia
Tel: +61 2 9251 4100
Fax: +61 2 9240 9821
www.bdo.com.au
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050
110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited
by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional
Standards Legislation.
DECLARATION OF INDEPENDENCE BY GARETH FEW TO THE DIRECTORS OF ATOMO DIAGNOSTICS
LIMITED
As lead auditor of Atomo Diagnostics Limited for the year ended 30 June 2024, I declare that, to the
best of my knowledge and belief, there have been:
1.
No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2.
No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Atomo Diagnostics Limited and the entities it controlled during the
period.
BDO Audit Pty Ltd
Gareth Few
Director
Sydney, 29 August 2024
ATOMO ANNUAL REPORT 2024
34
36
37
38
39
40
65
66
67
72
Atomo Diagnostics Limited
Contents
For the period ended 30 June 2024
Statement of Profit or Loss and Other Comprehensive Income
Statement of Financial Position
Statement of Changes in Equity
Statement of Cash Flows
Notes to the Financial Statements
Consolidated Entity Disclosure Statement
Directors' declaration
Independent auditor's report to the members of Atomo Diagnostics Limited
Shareholder information
General information
The financial statements cover Atomo Diagnostics Limited as a group consisting of Atomo Diagnostics Limited and the
entities it controlled at the end of, or during, the period. The financial statements are presented in Australian dollars,
which is Atomo Diagnostics Limited's functional and presentation currency.
Atomo Diagnostics Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its
registered office and principal place of business are:
Registered office
Principal place of business
Level 1
Level 1
3 - 5 George Street
3 - 5 George Street
Leichhardt NSW 2040
Leichhardt NSW 2040
A description of the nature of the group's operations and its principal activities is included in the directors' report, which is
not part of the financial statements.
The financial statements were authorised for issue, in accordance with a resolution of directors, on 29 August 2024. The
directors have the power to amend and reissue the financial statements.
ATOMO ANNUAL REPORT 2024
35
Atomo Diagnostics Limited
Statement of Profit or Loss and Other Comprehensive Income
For the period ended 30 June 2024
Consolidated
Note
30 June 2024
30 June 2023
AUD
AUD
The above statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes
Revenue
3
4,086,535
2,543,716
Costs of sales
(2,480,532)
(1,876,247)
Gross profit
1,606,003
667,469
Other Income
4
1,096,216
1,157,705
Employee benefits expense
5
(4,037,165)
(4,853,433)
Foreign exchange gains
25,170
107,548
Depreciation and amortisation expense
5
(1,659,270)
(1,891,787)
Impairment of assets
12
(798,990)
-
Research and development expenses
(236,423)
(604,719)
Insurance
(321,331)
(402,950)
Inventory obsolescence expense
(169,298)
(1,168,832)
IT expenses
(191,082)
(197,600)
Occupancy expenses
(18,834)
(9,497)
Professional and consulting fee expenses
(633,167)
(822,793)
Regulatory expenses
(654,011)
(555,559)
Travel expenses
(97,315)
(279,125)
Other expenses
(748,786)
(1,089,072)
Finance costs
5
(9,520)
(14,987)
Loss before income tax expense
(6,847,803)
(9,957,632)
Income tax expense
6
-
-
Loss after income tax expense for the period attributable to the
owners of Atomo Diagnostics Limited
(6,847,803)
(9,957,632)
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Foreign currency translation
57,086
(112,330)
Other comprehensive income for the period, net of tax
57,086
(112,330)
Total comprehensive income for the period attributable to the
owners of Atomo Diagnostics Limited
(6,790,717)
(10,069,962)
AUD Cents
AUD Cents
Basic earnings per share
28
(1.079)
(1.744)
Diluted earnings per share
28
(1.079)
(1.744)
ATOMO ANNUAL REPORT 2024
36
Atomo Diagnostics Limited
Statement of Financial Position
As at 30 June 2024
Consolidated
Note
30 June 2024 30 June 2023
AUD
AUD
The above statement of financial position should be read in conjunction with the accompanying notes
Assets
Current assets
Cash and cash equivalents
7
3,687,990
6,470,318
Trade and other receivables
8
2,063,259
1,823,824
Inventories
9
1,838,757
2,136,666
Total current assets
7,590,006
10,430,808
Non-current assets
Property, plant and equipment
10
1,641,519
2,509,488
Right-of-use assets
11
75,567
233,732
Intangible assets
12
2,071,920
3,299,531
Total non-current assets
3,789,006
6,042,751
Total assets
11,379,012
16,473,559
Liabilities
Current liabilities
Trade and other payables
13
774,176
861,631
Lease liabilities
14
84,670
170,701
Provisions
15
279,191
277,155
Deferred Revenue
16
49,841
185,074
Total current liabilities
1,187,878
1,494,561
Non-current liabilities
Lease liabilities
17
-
84,176
Provisions
18
106,515
104,611
Total non-current liabilities
106,515
188,787
Total liabilities
1,294,393
1,683,348
Net assets
10,084,619
14,790,211
Equity
Issued capital
19
70,086,549
68,036,837
Reserves
20
88,405
303,125
Accumulated losses
(60,090,335)
(53,549,751)
Total equity
10,084,619
14,790,211
ATOMO ANNUAL REPORT 2024
37
Atomo Diagnostics Limited
Statement of Changes in Equity
For the period ended 30 June 2024
The above statement of changes in equity should be read in conjunction with the accompanying notes
Issued
Foreign
Currency
Translation
Share Based
Payment
Accumulated
Total Equity
Capital
Reserve
Reserve
Losses
Consolidated
AUD
AUD
AUD
AUD
AUD
Balance at 1 July 2022
68,036,837
(63,078)
866,426
(44,026,471)
24,813,714
Loss after income tax expense for
the period
-
-
-
(9,957,632)
(9,957,632)
Other comprehensive income for
the period, net of tax
-
(112,330)
-
-
(112,330)
Total comprehensive income for
the period
-
(112,330)
-
(9,957,632)
(10,069,962)
Transactions with owners in their
capacity as owners:
Equity-settled share based
payments
-
-
(387,893)
434,352
46,459
Balance at 30 June 2023
68,036,837
(175,408)
478,533
(53,549,751)
14,790,211
Issued
Foreign
Currency
Translation
Share Based
Payment
Accumulated
Total Equity
Capital
Reserve
Reserve
Losses
Consolidated
AUD
AUD
AUD
AUD
AUD
Balance at 1 July 2023
68,036,837
(175,408)
478,533
(53,549,751)
14,790,211
Loss after income tax expense for
the period
-
-
-
(6,847,803)
(6,847,803)
Other comprehensive income for
the period, net of tax
-
57,086
-
-
57,086
Total comprehensive income for
the period
-
57,086
-
(6,847,803)
(6,790,717)
Transactions with owners in their
capacity as owners:
Equity-settled share based
payments
-
-
(271,806)
307,219
35,413
Issue of shares
2,259,206
-
-
-
2,259,206
Issue costs
(209,494)
-
-
-
(209,494)
Balance at 30 June 2024
70,086,549
(118,322)
206,727
(60,090,335)
10,084,619
ATOMO ANNUAL REPORT 2024
38
Atomo Diagnostics Limited
Statement of Cash Flows
For the period ended 30 June 2024
Consolidated
Note 30 June 2024
30 June 2023
AUD
AUD
The above statement of cash flows should be read in conjunction with the accompanying notes
Cash flows from operating activities
Receipts from customers (inc. of GST)
3,806,870
3,300,514
Payments to suppliers and employees (inc. of GST)
(9,406,018)
(10,430,849)
(5,599,148)
(7,130,335)
Interest received
152,080
74,109
R & D and other government incentives received
760,964
1,208,555
Net cash used in operating activities
27
(4,686,104)
(5,847,671)
Cash flows from investing activities
Payments for property, plant and equipment
(16,084)
(59,976)
Payments for intangibles assets
-
(341,300)
Net cash used in investing activities
(16,084)
(401,276)
Cash flows from financing activities
Net proceeds form issue of share capital (net of costs)
2,049,712
-
Repayment of leases
(182,712)
(170,752)
Net cash from/(used in) financing activities
1,867,000
(170,752)
Net decrease in cash and cash equivalents
(2,835,188)
(6,419,699)
Cash and cash equivalents at the beginning of the financial period
6,470,318
12,966,400
Effects of exchange rate changes on cash and cash equivalents
52,860
(76,383)
Cash and cash equivalents at the end of the financial period
7
3,687,990
6,470,318
ATOMO ANNUAL REPORT 2024
39
Atomo Diagnostics Limited
Notes to the Financial Statements
For the period ended 30 June 2024
Note 1. Material accounting policy information
New or amended Accounting Standards and Interpretations adopted
The group has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian
Accounting Standards Board ('AASB') that are mandatory for the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
The Directors have reviewed all of the new and revised accounting standards and interpretations issued by the Australian
Accounting Standards Board for annual reporting periods beginning or after 1 July 2023. It has been determined that
there is no impact, material or otherwise, of any other new or revised accounting standards and interpretations.
Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as
appropriate for for-profit oriented entities. These financial statements also comply with International Financial Reporting
Standards as issued by the International Accounting Standards Board ('IASB').
Historical cost convention
The financial statements have been prepared under the historical cost convention, except for, where applicable, the
revaluation of financial assets and liabilities at fair value through profit or loss, financial assets at fair value through other
comprehensive income, investment properties, certain classes of property, plant and equipment and derivative financial
instruments.
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the group's accounting policies. The areas involving a
higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial
statements, are disclosed in note 2.
Going concern
The annual report has been prepared on the going concern basis, which assumes continuity of normal business activities
and the realisation of the assets and the settlement of liabilities in the ordinary course of business.
As disclosed in the financial statements, the group incurred a loss of $6,847,803 (2023: $9,957,632) and had net cash
outflows from operating activities of $4,686,104 (2023: $5,847,671) for the year ended 30 June 2024. The group had a
surplus between current assets and current liabilities of $6,402,128 (2023: $8,936,247 surplus) and a cash balance of
$3,687,990 (2023: $6,470,318) as at 30 June 2024.
As a result of these matters, there is a material uncertainty related to events or conditions that may cast significant doubt
on whether the company will continue as a going concern and, therefore, whether it will realise its assets and settle its
liabilities and commitments in the normal course of business and at the amounts stated in the financial report.
The continuing viability of the group and its ability to continue as a going concern and meet its debts and commitments
as they fall due are dependent upon the group being successful with the following factors:
●
The ability of the group to raise additional funds from shareholders, new investors and or debt markets. The group
has successfully conducted a number of capital raises in the recent years. When taking these into account, there is a
reasonable expectation that alternative sources of funding can be sourced, as and when required. Further, the group
understands it will require further funding to continue to execute its growth strategy as planned. In its determination
on going concern, the Board placed significant reliance upon the representations of its Corporate Advisor with respect
to its confidence in its ability to continue raising capital on behalf of the group;
●
Increased revenue from opportunities with existing and new customers and sales arrangements as they are realised
into sales revenue; and
●
Effective monitoring and reduction of the group’s overhead expenditures, including the continued realisation of head
office cost reductions.
In the event that the group is unable to achieve the matters detailed above, it may not be able to continue as a going
concern and therefore the group may not be able to realise its assets and extinguish its liabilities in the ordinary course of
operations and at the amounts stated in the financial statements.
ATOMO ANNUAL REPORT 2024
40
Atomo Diagnostics Limited
Notes to the Financial Statements
For the period ended 30 June 2024
Note 1. Material accounting policy information (continued)
No adjustments have been made to the recoverability and classification of recorded asset values and the amount and
classification of liabilities that might be necessary should the consolidated entity and the company not continue as going
concerns.
Reclassification of prior year amounts and balances
When required by Accounting standards, comparative figures have been adjusted to conform to changes in presentation
for the current financial year.
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the group only.
Supplementary information about the parent entity is disclosed in note 24.
Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Atomo Diagnostics Limited
('company' or 'parent entity') as at 30 June 2024 and the results of all subsidiaries for the period then ended. Atomo
Diagnostics Limited and its subsidiaries together are referred to in these financial statements as the 'group'.
Subsidiaries are all those entities over which the group has control. The group controls an entity when the group is
exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those
returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which
control is transferred to the group. They are de-consolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between entities in the group are eliminated.
Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted
by the group.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership
interest, without the loss of control, is accounted for as an equity transaction, where the difference between the
consideration transferred and the book value of the share of the non-controlling interest acquired is recognised directly in
equity attributable to the parent.
Non-controlling interest in the results and equity of subsidiaries are shown separately in the statement of profit or loss
and other comprehensive income, statement of financial position and statement of changes in equity of the group. Losses
incurred by the group are attributed to the non-controlling interest in full, even if that results in a deficit balance.
Where the group loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and non-
controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. The group
recognises the fair value of the consideration received and the fair value of any investment retained together with any
gain or loss in profit or loss.
Operating segments
The group manages its operations as a single business operation and there are no parts of the group that qualify as
operating segments under AASB 8 Operating Segments. The CEO (Chief Operating Decision Maker or “CODM”) assesses
the financial performance of the group in an integrated basis only and accordingly, the group is managed on the basis of
a single segment, being medical device research and development. Information presented to the CODM on a monthly
basis is categorised by type of expenditure.
Foreign currency translation
The financial statements are presented in Australian dollars, which is Atomo Diagnostics Limited's functional and
presentation currency.
Foreign currency transactions
Foreign currency transactions are translated into Australian dollars using the exchange rates prevailing at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the
translation at financial period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are
recognised in profit or loss.
ATOMO ANNUAL REPORT 2024
41
Atomo Diagnostics Limited
Notes to the Financial Statements
For the period ended 30 June 2024
Note 1. Material accounting policy information (continued)
Foreign operations
The assets and liabilities of foreign operations are translated into Australian dollars using the exchange rates at the
reporting date. The revenues and expenses of foreign operations are translated into Australian dollars using the average
exchange rates, which approximate the rates at the dates of the transactions, for the period. All resulting foreign
exchange differences are recognised in other comprehensive income through the foreign currency reserve in equity.
The foreign currency reserve is recognised in profit or loss when the foreign operation or net investment is disposed of.
Revenue recognition
The consolidated entity recognises revenue as follows:
Revenue from contracts with customers and sale of goods and services
Revenue is measured based on the consideration specified in a contract with a customer. The group recognises revenue
when it transfers control over a good or service to a customer as per agreement arranged. This varies between:
●
Goods are ready and released by Quality Assurance (QA)
●
Goods are made available at collection point ex-works
●
Goods are delivered to customer at the arranged delivery point
●
Goods have been dispatched from manufacturing warehouse ex-works
●
Services is recognised over time as the services rendered are based on either an hourly rate or a fixed price
Where ex-works is agreed, the customer is responsible to make necessary arrangements for freight and the collection of
goods from the group's warehouse.
Invoices are usually payable within 30 to 75 days, dependent on the contracted agreement. The contracts do not allow
the customers to return the goods as the testing kits have a set shelf-life and have gone through vigorous testing prior to
delivery.
Since none of the contracts permit the customer to return an item, revenue is recognised for all the goods once the goods
have been released by QA and are available for collection at the group's warehouse.
Interest
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the
amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest
rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial
asset to the net carrying amount of the financial asset.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
Income tax
Income tax expense comprises current and deferred tax. It is recognised in profit or loss except to the extent that it
relates to a business combination, or items recognised directly in equity or in other comprehensive income.
Current tax:
Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any
adjustment to tax payable or receivable in respect of previous years. It is measured using tax rates enacted or
substantively enacted at the reporting date. Current tax also includes any tax liability arising from dividends.
Current tax assets and liabilities are offset only if certain criteria are met.
Deferred tax:
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for
financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for temporary
differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that
affects neither accounting nor taxable profit or loss, or on taxable temporary differences arising on the initial recognition
of goodwill.
ATOMO ANNUAL REPORT 2024
42
Atomo Diagnostics Limited
Notes to the Financial Statements
For the period ended 30 June 2024
Note 1. Material accounting policy information (continued)
Deferred tax assets are recognised for unused tax losses, tax credits and deductible temporary differences, to the extent
that it is probable that future taxable profits will be available against which they can be utilised. Deferred tax assets are
reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit
will be realised; such reductions are reversed when the probability of future taxable profits improves.
Unrecognised deferred tax assets are reassessed at each reporting date and recognised to the extent that it has become
probable that future taxable profits will be available against which they can be used.
Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse,
using tax rates enacted or substantively enacted at the reporting date.
The measurement of deferred tax reflects the tax consequences that could follow the manner in which the group expects,
at the reporting date, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset only if certain criteria are met.
R&D tax incentives:
R&D tax incentives received by the group are recognised as other income over the periods necessary to match the benefit
of the incentive with the cost for which it is intended to compensate ("associated cost"). Such periods will depend on
whether the associated costs are capitalised or expensed as incurred.
Under this policy, for that portion of associated costs which are expensed during the period, the proportional incentive is
recognised in other income in full during the same period. For that portion of associated costs which are capitalised
during the period, the proportional incentive is initially offset against the capitalised associated costs and recognised
against amortisation expense on a systematic basis matching the useful life of the capitalised asset.
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the
group's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12
months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used
to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the group's normal operating cycle; it is held
primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no
unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other
liabilities are classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
Trade and other receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective
interest method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within
30 days but certain customers have longer payment terms.
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
Property, plant and equipment
Recognition and measurement:
Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment
losses. Cost includes expenditure that is directly attributable to the acquisition of the asset.
If significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as
separate items (major components) of property, plant and equipment.
Any gain and loss on disposal of an item of property, plant and equipment is recognised in profit or loss.
ATOMO ANNUAL REPORT 2024
43
Atomo Diagnostics Limited
Notes to the Financial Statements
For the period ended 30 June 2024
Note 1. Material accounting policy information (continued)
Subsequent expenditure:
Subsequent expenditure is capitalised only when it is probable that the future economic benefits associated with the
expenditure will flow to the group.
Depreciation:
Depreciation is calculated based on the cost of property, plant and equipment less their estimated residual values using
the straight-line basis over their estimated useful lives, and is generally recognised in profit or loss.
The estimated useful lives of property, plant and equipment are as follows:
Plant and Equipment
2 - 5 years
Leasehold improvements
1 - 3 years
Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.
Intangible assets
Recognition and measurement:
Computer software:
Computer software comprises computer application system software and licenses. Costs incurred in developing products
or systems and costs incurred in acquiring software and licenses that will contribute to future period financial benefits
through revenue generation and/or cost reduction are capitalised to computer software. Costs capitalised include external
direct costs of materials and services, direct payroll and payroll-related costs.
Patents, trademarks and licences:
Other intangible assets, including patents, trademarks and licences that are acquired by the group and have finite useful
lives are measured at cost less any accumulated amortisation and impairment losses.
Capitalised development costs:
Capitalised development costs relate to the Company’s rapid test platforms and associated manufacturing assets and are
capitalised only if the expenditure can be measured reliably, the product or process is technically and commercially
feasible, future economic benefits are probable, and the group intends to and has sufficient resources to complete
development and to use or sell the asset. Otherwise, it is recognised in profit or loss as incurred. Subsequent to initial
recognition, development expenditure is measured at cost less accumulated amortisation and any accumulated
impairment losses.
Expenditure on research activities is recognised in profit or loss as incurred.
Subsequent expenditure:
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset
to which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognised
in profit or loss as incurred.
Amortisation:
Amortisation is calculated based on the cost of intangible assets less their estimated residual values using the straight-
line method over their estimated useful lives, and is generally recognised in profit or loss.
The estimated useful lives of intangible assets are as follows:
Patents and trademarks
10 - 20 years
Other intangibles
10 years
Capitalised development costs
10 years
Amortisation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.
Deferred Revenue
Deferred revenues are amounts received upfront prior to the satisfaction of revenue performance obligations. Amounts
expected to be recognised as revenue within the 12 months following the balance sheet date are classified within current
liabilities. Amounts not expected to be recognised as revenue within the 12 months following the balance sheet date are
classified within non-current liabilities at the present value amount.
ATOMO ANNUAL REPORT 2024
44
Atomo Diagnostics Limited
Notes to the Financial Statements
For the period ended 30 June 2024
Note 1. Material accounting policy information (continued)
Impairment
Non-financial assets:
At each reporting date, the group reviews the carrying amounts of its non-financial assets (other than deferred tax
assets) to determine whether there is any indication of impairment. If any such indication exists, then the asset’s
recoverable amount is valued.
For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from
continuing use that are largely independent of the cash inflows of other assets or cash generating units ('CGUs').
The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value in
use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that
reflects current market assessments of the time value of money and the risks specific to the asset or CGU.
An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its recoverable amount. Impairment
losses are recognised in profit or loss. They are allocated first to reduce the carrying amount of any goodwill allocated to
the CGU, and then to reduce the carrying amount of assets in the CGU on a pro rata basis. An impairment loss is
reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been
determined, net of depreciation or amortisation, if no impairment loss had been recognised.
Financial instruments
Classification and measurement – non-derivative financial assets and financial liabilities:
The group's management assessed which business models applied to the financial assets held by the group and classified
its financial instruments into the appropriate AASB 9 categories.
Financial assets classified as held-to-maturity and loans and receivables under AASB 139 that were measured at
amortised cost continued to be measured at amortised cost under AASB 9 as they are held within a business model to
collect contractual cash flows and these cash flows consist solely of payments of principal and interest on the principal
amount outstanding.
In relation to the impairment of financial assets, AASB 9 requires an expected credit loss model as opposed to an incurred
credit loss model under AASB 139. The expected credit loss model requires the group to account for expected credit
losses and changes in those expected credit losses at each reporting date to reflect changes in credit risk since initial
recognition of the financial assets. Consequently, it is no longer necessary for a credit event to have occurred before
credit losses are recognised.
The group has one type of financial assets (trade and other receivables) that are subject to AASB 9 expected credit loss
model.
Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at FVTPL if it
is classified as held-for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at
FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in profit or
loss. Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest
expense and foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on derecognition is also
recognised in profit or loss.
Provisions
Provisions are recognised when the group has a present (legal or constructive) obligation as a result of a past event, it is
probable the consolidated entity will be required to settle the obligation, and a reliable estimate can be made of the
amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to
settle the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the
obligation. If the time value of money is material, provisions are discounted using a current pre-tax rate specific to the
liability. The increase in the provision resulting from the passage of time is recognised as a finance cost.
ATOMO ANNUAL REPORT 2024
45
Atomo Diagnostics Limited
Notes to the Financial Statements
For the period ended 30 June 2024
Note 1. Material accounting policy information (continued)
Employee benefits
Short-term employee benefits:
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be
settled wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the
liabilities are settled.
Other long-term employee benefits:
The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting date are
measured at the present value of expected future payments to be made in respect of services provided by employees up
to the reporting date using the projected unit credit method. 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 corporate bonds with terms to maturity and currency that match, as closely as possible,
the estimated future cash outflows.
Defined contribution superannuation expense:
Contributions to defined contribution superannuation plans are expensed in the period in which they are incurred.
Share-based payments:
Equity-settled and cash-settled share-based compensation benefits are provided to employees.
Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in exchange for
the rendering of services. Cash-settled transactions are awards of cash for the exchange of services, where the amount of
cash is determined by reference to the share price.
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently determined
using either the Binomial or Black-Scholes option pricing model that takes into account the exercise price, the term of the
option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the
expected dividend yield and the risk free interest rate for the term of the option, together with non-vesting conditions
that do not determine whether the consolidated entity receives the services that entitle the employees to receive
payment. No account is taken of any other vesting conditions.
The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity over the
vesting period. Where early exercise has occurred, this cost is accelerated. The cumulative charge to profit or loss is
calculated based on the grant date fair value of the award, the best estimate of the number of awards that are likely to
vest and the expired portion of the vesting period. The amount recognised in profit or loss for the period is the cumulative
amount calculated at each reporting date less amounts already recognised in previous periods.
The cost of cash-settled transactions is initially, and at each reporting date until vested, determined by applying either
the Binomial or Black-Scholes option pricing model, taking into consideration the terms and conditions on which the
award was granted. The cumulative charge to profit or loss until settlement of the liability is calculated as follows:
●
during the vesting period, the liability at each reporting date is the fair value of the award at that date multiplied by
the expired portion of the vesting period.
●
from the end of the vesting period until settlement of the award, the liability is the full fair value of the liability at the
reporting date.
All changes in the liability are recognised in profit or loss. The ultimate cost of cash-settled transactions is the cash paid
to settle the liability.
Market conditions are taken into consideration in determining fair value. Therefore any awards subject to market
conditions are considered to vest irrespective of whether or not that market condition has been met, provided all other
conditions are satisfied.
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been made.
An additional expense is recognised, over the remaining vesting period, for any modification that increases the total fair
value of the share-based compensation benefit as at the date of modification.
If the non-vesting condition is within the control of the consolidated entity or employee, the failure to satisfy the
condition is treated as a cancellation. If the condition is not within the control of the consolidated entity or employee and
is not satisfied during the vesting period, any remaining expense for the award is recognised over the remaining vesting
period, unless the award is forfeited.
ATOMO ANNUAL REPORT 2024
46
Atomo Diagnostics Limited
Notes to the Financial Statements
For the period ended 30 June 2024
Note 1. Material accounting policy information (continued)
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining
expense is recognised immediately. If a new replacement award is substituted for the cancelled award, the cancelled and
new award is treated as if they were a modification.
Fair value measurement
When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the
fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date; and assumes that the transaction will take place
either: in the principal market; or in the absence of a principal market, in the most advantageous market.
Fair value is measured using the assumptions that market participants would use when pricing the asset or liability,
assuming they act in their economic best interests. For non-financial assets, the fair value measurement is based on its
highest and best use. Valuation techniques that are appropriate in the circumstances and for which sufficient data are
available to measure fair value, are used, maximising the use of relevant observable inputs and minimising the use of
unobservable inputs.
Assets and liabilities measured at fair value are classified into three levels, using a fair value hierarchy that reflects the
significance of the inputs used in making the measurements. Classifications are reviewed at each reporting date and
transfers between levels are determined based on a reassessment of the lowest level of input that is significant to the fair
value measurement.
For recurring and non-recurring fair value measurements, external valuers may be used when internal expertise is either
not available or when the valuation is deemed to be significant. External valuers are selected based on market knowledge
and reputation. Where there is a significant change in fair value of an asset or liability from one period to another, an
analysis is undertaken, which includes a verification of the major inputs applied in the latest valuation and a comparison,
where applicable, with external sources of data.
Issued capital
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of
tax, from the proceeds.
Earnings per share
Basic earnings per share:
Basic earnings per share is calculated by dividing the profit attributable to the owners of Atomo Diagnostics Limited,
excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares
outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the financial year.
Diluted earnings per share:
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account
the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the
weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential
ordinary shares.
Goods and Services Tax ('GST') and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not
recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as
part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement of
financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing
activities which are recoverable from, or payable to the tax authority, are presented as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax
authority.
ATOMO ANNUAL REPORT 2024
47
Atomo Diagnostics Limited
Notes to the Financial Statements
For the period ended 30 June 2024
Note 1. Material accounting policy information (continued)
Rounding of amounts
The company is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian Securities and
Investments Commission, relating to 'rounding-off'. Amounts in this report have been rounded off in accordance with that
Corporations Instrument to the nearest dollar.
The accounting policies that are material to the group are set out either in the respective notes or below. The accounting
policies adopted are consistent with those of the previous financial year, unless otherwise stated.
Note 2. Critical accounting judgements, estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates and assumptions that
affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates
in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates
and assumptions on historical experience and on other various factors, including expectations of future events,
management believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will
seldom equal the related actual results. The judgements, estimates and assumptions that have a significant risk of
causing a material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the
next financial year are discussed below.
Share-based payment transactions
The group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity
instruments at the date at which they are granted. The fair value is determined by using Black-Scholes model taking into
account the terms and conditions upon which the instruments were granted and includes assumptions which require
judgement.
Revenue from contracts with customers involving sale of goods and services
When recognising revenue in relation to the sale of goods to customers, the key performance obligation of the group is
considered to be the point when customer obtains control of the promised goods as outlined in the arrangement.
When recognising revenue in relation to services, revenue is recognised over time as the services is provided. Services
are deemed rendered based on the contractual arrangements with the customer and as each performance obligation is
identified and satisfied.
Allowance for expected credit losses
The allowance for expected credit losses assessment requires a degree of estimation and judgement. It is based on the
lifetime expected credit loss, grouped based on days overdue, and makes assumptions to allocate an overall expected
credit loss rate for each group. These assumptions include recent sales experience and historical collection rates.
Write-down of inventories
Any write-down of inventories requires a degree of estimate and judgement. The level of the write-down is assessed by
taking into account the recent sales experience, the ageing of the inventories and other factors that affect inventory
obsolescence.
Fair value measurement hierarchy
The group is required to classify all assets and liabilities, measured at fair value, using a three level hierarchy, based on
the lowest level of input that is significant to the entire fair value measurement, being: Level 1: Quoted prices
(unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date; Level
2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or
indirectly; and Level 3: Unobservable inputs for the asset or liability. Considerable judgement is required to determine
what is significant to fair value and therefore which category the asset or liability is placed in can be subjective.
The fair value of assets and liabilities classified as level 3 is determined by the use of valuation models. These include
discounted cash flow analysis or the use of observable inputs that require significant adjustments based on unobservable
inputs.
Estimation of useful lives of assets
The group determines the estimated useful lives and related depreciation and amortisation charges for its property, plant
and equipment and finite life intangible assets. The useful lives could change significantly as a result of technical
innovations or some other event. The depreciation and amortisation charge will increase where the useful lives are less
than previously estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold will be
written off or written down.
ATOMO ANNUAL REPORT 2024
48
Atomo Diagnostics Limited
Notes to the Financial Statements
For the period ended 30 June 2024
Note 2. Critical accounting judgements, estimates and assumptions (continued)
Lease term
The lease term is a significant component in the measurement of both the right-of-use asset and lease liability.
Judgement is exercised in determining whether there is reasonable certainty that an option to extend the lease or
purchase the underlying asset will be exercised, or an option to terminate the lease will not be exercised, when
ascertaining the periods to be included in the lease term. In determining the lease term, all facts and circumstances that
create an economical incentive to exercise an extension option, or not to exercise a termination option, are considered at
the lease commencement date. Factors considered may include the importance of the asset to the group's operations;
comparison of terms and conditions to prevailing market rates; incurrence of significant penalties; existence of significant
leasehold improvements; and the costs and disruption to replace the asset. The group reassesses whether it is
reasonably certain to exercise an extension option, or not exercise a termination option, if there is a significant event or
significant change in circumstances.
Incremental borrowing rate
Where the interest rate implicit in a lease cannot be readily determined, an incremental borrowing rate is estimated to
discount future lease payments to measure the present value of the lease liability at the lease commencement date. Such
a rate is based on what the group estimates it would have to pay a third party to borrow the funds necessary to obtain an
asset of a similar value to the right-of-use asset, with similar terms, security and economic environment.
Employee benefits provision
As discussed in note 1, the liability for employee benefits expected to be settled more than 12 months from the reporting
date are recognised and measured at the present value of the estimated future cash flows to be made in respect of all
employees at the reporting date. In determining the present value of the liability, estimates of attrition rates and pay
increases through promotion and inflation have been taken into account.
Impairment of intangible assets
The group tests intangible assets for impairment for each reporting period or more frequently if events or changes in
circumstances indicate it has suffered an impairment, in accounting policy stated in Note 1. The recoverable amount of a
cash generating unit ('CGU') is determined based on value-in-use calculations whereby cash flows are projected and
extrapolated over a five year period with growth rates that do not exceed the long-term average growth rate for the
market in which the group operates. The discount rate used reflects the group's pre tax weighted average cost of capital.
Capitalised development costs
Costs that are directly associated with the development of products are recognised as intangible assets where the
relevant criteria under the accounting standards are met, as described in Note 1. This requires a degree of estimation and
judgement.
Research and development tax rebate
The group is entitled to claim R&D tax incentives in Australia. The R&D tax incentive is calculated using the estimated
R&D expenditure multiplied by a 43.5% refundable tax offset. The group accounts for this incentive as follows:
●
For activities capitalised during the period, the rebate is amortised and recognised as other income within the
Statement of Profit or Loss and Other Comprehensive Income over the life of the intangible asset.
●
For activities directly expensed during the period, the rebate is recognised as other income within the Statement of
Profit or Loss and Other Comprehensive Income for activities expenses during the period.
Note 3. Revenue
Consolidated
30 June 2024 30 June 2023
Revenue from contracts with customers
AUD
AUD
Sale of goods
4,058,437
2,543,716
Rendering of services
28,098
-
4,086,535
2,543,716
ATOMO ANNUAL REPORT 2024
49
Atomo Diagnostics Limited
Notes to the Financial Statements
For the period ended 30 June 2024
Note 3. Revenue (continued)
Disaggregation of revenue
The disaggregation of revenue from contracts with customers is as follows:
Consolidated
30 June 2024 30 June 2023
Major product lines
AUD
AUD
Point-of-care tests
3,236,960
1,932,289
Point-of-care technology
757,113
590,737
Other
92,462
20,690
Total
4,086,535
2,543,716
Consolidated
Timing of revenue recognition
30 June 2024 30 June 2023
Goods transferred at a point in time
4,058,437
2,543,716
Services transferred over time
28,098
-
4,086,535
2,543,716
Note 4. Other Income
Consolidated
30 June 2024 30 June 2023
AUD
AUD
R&D tax rebate
939,104
946,411
Licence and settlement fees
5,032
137,185
Interest income
152,080
74,109
Total
1,096,216
1,157,705
ATOMO ANNUAL REPORT 2024
50
Atomo Diagnostics Limited
Notes to the Financial Statements
For the period ended 30 June 2024
Note 5. Expenses
Consolidated
30 June 2024
AUD
30 June 2023
AUD
Profit / (loss) before income tax from continuing operations includes the following specific
expenses:
Employee benefits expense
Salaries, wages and directors' fees
3,508,417
3,731,788
Contributions to defined contribution superannuation funds
292,254
274,546
Equity-settled share-based payments
35,413
46,459
Other employment related expenses
201,081
800,640
Total
4,037,165
4,853,433
Depreciation and amortisation
Depreciation expense (Note 10)
884,053
1,215,718
Amortisation expense (Note 12)
614,067
523,178
Right-of-use assets (Note 11)
161,150
152,891
Total
1,659,270
1,891,787
Finance Cost
Lease interest expense
9,520
14,987
Total
9,520
14,987
Note 6. Income tax
(a) Income tax benefit
Income tax benefit comprises current and deferred tax expense and is recognised in profit or loss, except to the extent
that it relates to a business combination or items recognised directly in equity or other comprehensive income. The
components of income tax benefit comprise:
Consolidated
30 June 2024 30 June 2023
AUD
AUD
Income tax expense
Current tax
-
-
Deferred tax - origination and reversal of temporary differences
-
-
Aggregate income tax expense
-
-
Numerical reconciliation of income tax expense and tax at the statutory rate
Loss before income tax expense
(6,847,803)
(9,957,632)
Tax effect amounts which are not deductible/(taxable) in calculating taxable income:
Tax using the Group's average tax rate 27% (2023: 27%)
1,697,926
2,723,109
Permanent and temporary difference
(263,329)
(53,771)
Tax losses not brought to account
(1,434,597)
(2,669,338)
Income tax expense
-
-
(b) Deferred tax assets and liabilities
Due to the uncertainty of the group generating sufficient taxable income to offset tax losses carried forward, the future
tax benefits of these losses, to the extent that they do not set off temporary differences that have resulted in deferred
tax liabilities, has not been brought to account in these financial statements.
ATOMO ANNUAL REPORT 2024
51
Atomo Diagnostics Limited
Notes to the Financial Statements
For the period ended 30 June 2024
Note 6. Income tax (continued)
Consolidated
30 June
2024
30 June
2023
AUD
AUD
Net tax effect of carried forward losses not brought to account
8,061,647
6,202,721
Note 7. Current assets - cash and cash equivalents
Consolidated
30 June 2024 30 June 2023
AUD
AUD
Cash at bank
3,687,990
6,470,318
Note 8. Current assets - trade and other receivables
Consolidated
30 June 2024 30 June 2023
AUD
AUD
Trade receivables
1,248,874
687,334
Less: Allowance for expected credit losses
(19,294)
(4,050)
1,229,580
683,284
Other receivables
80,020
379,575
R&D tax rebate receivable
753,659
760,965
Total
2,063,259
1,823,824
Allowance for expected credit losses
The group monitors its level of debt recovery at each reporting date (including interim reporting dates) in order to assess
for any changes in the probability of customers' ability to pay, including due to external factors.
The ageing of the receivables and allowance for expected credit losses provided for above are as follows:
Carrying amount
Allowance for expected
credit losses
30 June 2024 30 June 2023 30 June 2024 30 June 2023
Consolidated
AUD
AUD
AUD
AUD
0 to 30 Days
998,684
687,334
9,286
4,050
61 to 90 Days
250,190
-
10,008
-
Total
1,248,874
687,334
19,294
4,050
ATOMO ANNUAL REPORT 2024
52
Atomo Diagnostics Limited
Notes to the Financial Statements
For the period ended 30 June 2024
Note 9. Current assets - inventories
Consolidated
30 June 2024 30 June 2023
AUD
AUD
Raw materials - at cost
1,267,348
2,021,385
Less: Provision for impairment
(83,855)
(40,967)
1,183,493
1,980,418
Work in progress - at cost
141,548
56,375
Finished goods - at cost
109,702
149,339
Less: Provision for impairment
(21,293)
(49,466)
88,409
99,873
Stock in transit - at cost
425,307
-
Total
1,838,757
2,136,666
Note 10. Non-current assets - property, plant and equipment
Consolidated
30 June 2024 30 June 2023
AUD
AUD
Leasehold improvements - at cost
471,587
468,474
Less: Accumulated depreciation
(175,108)
(130,093)
Total leasehold improvements
296,479
338,381
Plant and equipment - at cost
7,139,394
7,126,423
Less: Accumulated depreciation
(5,794,354)
(4,955,316)
Total plant and equipment
1,345,040
2,171,107
Total
1,641,519
2,509,488
Reconciliations
Reconciliations of the written down values at the beginning and end of the current financial period are set out below:
Leasehold
improvements
Plant and
equipment
Total
Consolidated
AUD
AUD
AUD
Balance at 1 July 2023
338,381
2,171,107
2,509,488
Additions
3,113
12,971
16,084
Depreciation expense
(45,015)
(839,038)
(884,053)
Balance at 30 June 2024
296,479
1,345,040
1,641,519
Leasehold
improvements
Plant and
equipment
Total
Consolidated
AUD
AUD
Balance at 1 July 2022
372,658
3,292,572
3,665,230
Additions
5,410
54,566
59,976
Depreciation expense
(39,687)
(1,176,031)
(1,215,718)
Balance at 30 June 2023
338,381
2,171,107
2,509,488
ATOMO ANNUAL REPORT 2024
53
Atomo Diagnostics Limited
Notes to the Financial Statements
For the period ended 30 June 2024
Note 11. Non-current assets - right-of-use assets
Consolidated
30 June 2024 30 June 2023
AUD
AUD
Land and buildings - right-of-use
494,695
494,695
Add: Foreign exchange movement
2,985
1,927
Less: Accumulated depreciation
(431,601)
(275,154)
66,079
221,468
Plant and equipment - right-of-use
13,884
13,884
Less: Accumulated depreciation
(4,396)
(1,620)
9,488
12,264
Total
75,567
233,732
The group leases land and buildings for its offices in Sydney Australia and warehouse in South Africa under agreements of
between one (1) to three (3) years with, in some cases, options to extend, which have not been taken up. The group also
leases a single piece of office equipment under a five (5) year agreement. Additions in the year were nil (2023: nil).
Note 12. Non-current assets - intangible assets
Consolidated
30 June 2024 30 June 2023
AUD
AUD
Development - at cost
3,280,309
3,094,863
Less: Accumulated amortisation
(1,602,356)
(1,154,045)
Less: Impairment
(798,990)
-
Total Development - at cost
878,963
1,940,818
Patents and trademarks - at cost
1,632,443
1,632,443
Less: Accumulated amortisation
(814,900)
(742,492)
Total Patents and trademarks - at cost
817,543
889,951
Other intangible assets - at cost
550,485
550,475
Less: Accumulated amortisation
(175,071)
(81,713)
Total Other intangible assets - at cost
375,414
468,762
Total
2,071,920
3,299,531
ATOMO ANNUAL REPORT 2024
54
Atomo Diagnostics Limited
Notes to the Financial Statements
For the period ended 30 June 2024
Note 12. Non-current assets - intangible assets (continued)
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial period are set
out below:
Patents and
trademarks
Product
development
costs
Other
intangibles
Total
Consolidated
AUD
AUD
AUD
AUD
Balance at 1 July 2022
958,621
2,202,513
413,556
3,574,690
Additions
5,000
-
57,573
62,573
Amortisation expense1
(73,670)
(261,695)
(2,367)
(337,732)
Balance at 30 June 2023
889,951
1,940,818
468,762
3,299,531
Additions
-
-
-
-
Impairment of assets
-
(798,990)
-
(798,990)
Amortisation expense1
(72,408)
(262,865)
(93,348)
(428,621)
Balance at 30 June 2024
817,543
878,963
375,414
2,071,920
1 The amount is made up of the amortisation charge and release of the R&D capitalised rebate into Other income.
Impairment of intangibles
At the beginning of the financial year the recoverable amount of the cash generating unit (CGU) was in excess of the
carrying value. The group tests intangible assets for impairment for each reporting period or more frequently if events or
changes in circumstances indicate it has suffered an impairment, in accounting policy stated in Note 1.
During the course of the financial year the financial performance of the group fell below budget largely as a result of:
●
Delay’s in securing necessary approvals to enable the company to market product and secure new market revenue
●
Growth in the HIV business while significant, did not meet full budgetary expectations. Although significant volumes
were supplied to Atomo's European partner NewFoundland Diagnostics, the roll out of products was slower than
anticipated over the period
The recoverable amount of the CGU is determined based on value-in-use (VIU) calculations whereby cash flows are
projected and extrapolated over a five-year period with growth rates that do not exceed the long-term average growth
rate for the market in which the group operates. The VIU model is discounted using the group’s weighted average costs
of capital (WACC) of 12.8% (2023:11.9%).
Atomo operates as a single operating segment and cash generating unit (CGU) being point-of-care diagnostics goods and
services.
Based the assessment performed, the recoverable amount of the CGU is determined to be lower than the carrying
amount as at 30 June 2024. As a result, the group recognised an impairment of $798,990 against intangible assets -
product development costs.
Note 13. Current liabilities - trade and other payables
Consolidated
30 June 2024 30 June 2023
AUD
AUD
Trade payables
478,640
179,340
Accrued expenses
219,527
611,061
Other payables
76,009
71,230
Total
774,176
861,631
All amounts are short term and the carrying values are considered to be a reasonable approximation of fair value.
ATOMO ANNUAL REPORT 2024
55
Atomo Diagnostics Limited
Notes to the Financial Statements
For the period ended 30 June 2024
Note 14. Current liabilities - lease liabilities
Consolidated
30 June 2024 30 June 2023
AUD
AUD
Lease liability
84,670
170,701
Note 15. Current liabilities - provisions
Consolidated
30 June 2024 30 June 2023
AUD
AUD
Annual leave
161,677
191,549
Long service leave
117,514
85,606
Total
279,191
277,155
The current provision for employee benefits includes all unconditional entitlements where employees have completed the
required period of service and also those where employees are entitled to pro-rata payments in certain circumstances.
The entire amount is presented as current, since the group does not have an unconditional right to defer settlement.
Note 16. Current liabilities - deferred revenue
Consolidated
30 June 2024 30 June 2023
AUD
AUD
Deferred revenue
49,841
185,074
Deferred revenue recognised relates to payments received in advance for POC Tests orders.
Note 17. Non-current liabilities - lease liabilities
Consolidated
30 June 2024 30 June 2023
AUD
AUD
Lease liability
-
84,176
Note 18. Non-current liabilities - provisions
Consolidated
30 June 2024 30 June 2023
AUD
AUD
Long service leave
56,515
54,611
Lease make good
50,000
50,000
Total
106,515
104,611
ATOMO ANNUAL REPORT 2024
56
Atomo Diagnostics Limited
Notes to the Financial Statements
For the period ended 30 June 2024
Note 19. Equity - issued capital
Movements in ordinary share capital
Details
Date
Number of
Shares
AUD
Opening balance
1 July 2023
570,890,991
68,036,837
Issue of shares at $0.036 per share
19 July 2023
34,977,932
1,259,206
Issue of shares at $0.030 per share
8 August 2023
33,333,387
1,000,002
Transaction costs
-
(209,496)
Closing balance as at
30 June 2024
639,202,310
70,086,549
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the company in
proportion to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and
the company does not have a limited amount of authorised capital.
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each
share shall have one vote.
Capital risk management
The group's objectives when managing capital is to safeguard its ability to continue as a going concern, so that it can
provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital structure to
reduce the cost of capital.
Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt is
calculated as total borrowings less cash and cash equivalents.
In order to maintain or adjust the capital structure, the group may take one of several actions which may include issue of
new shares, the payment of dividends, a return of capital to shareholders or sell assets to reduce debt. See subsequent
events for current initiatives being pursed at the date of this report.
The group would look to raise capital when an opportunity to invest in a business or company was seen as value adding
relative to the current company's share price at the time of the investment. The group is not actively pursuing additional
investments in the short term as it continues to integrate and grow its existing businesses in order to maximise
synergies.
The group currently has no debt and is not subject to certain financing arrangements covenants.
Note 20. Equity - reserves
Consolidated
30 June 2024 30 June 2023
AUD
AUD
Foreign currency reserve
(118,322)
(175,408)
Share-based payments reserve
206,727
478,533
88,405
303,125
Foreign currency reserve
The reserve is used to recognise exchange differences arising from the translation of the financial statements of foreign
operations to Australian dollars and the effect of permanent loans with foreign operations within the group.
Share-based payments reserve
The reserve is used to recognise the fair value of equity-settled share-based payments where they relate to yet-to-be
exercised options.
ATOMO ANNUAL REPORT 2024
57
Atomo Diagnostics Limited
Notes to the Financial Statements
For the period ended 30 June 2024
Note 20. Equity - reserves (continued)
Movements in reserves
Movements in each class of reserve during the current and previous financial period are set out below:
Foreign
currency
Share based
payment
Total
Consolidated
AUD
AUD
AUD
Balance at 1 July 2022
(63,078)
866,426
803,348
Foreign currency translation
(112,330)
-
(112,330)
Equity-settled share-based payments
-
46,459
46,459
Lapsed and cancelled options reallocated to equity
-
(434,352)
(434,352)
Balance at 30 June 2023
(175,408)
478,533
303,125
Equity-settled share-based payments
-
-
-
Exercise of options
-
-
-
Lapsed and cancelled options reallocated to equity
-
(271,806)
(271,806)
Foreign currency translation
57,086
-
57,086
Balance at 30 June 2024
(118,322)
206,727
88,405
Note 21. Financial instruments
Financial risk management objectives
The group's activities expose it to a variety of financial risks: market risk (including foreign currency risk, price risk and
interest rate risk), credit risk and liquidity risk. The group's overall risk management program focuses on the
unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the
group. The group uses derivative financial instruments such as forward foreign exchange contracts to hedge certain risk
exposures. Derivatives are exclusively used for hedging purposes, i.e. not as trading or other speculative instruments.
The group uses different methods to measure different types of risk to which it is exposed. These methods include
sensitivity analysis in the case of interest rate, foreign exchange and other price risks, ageing analysis for credit risk and
beta analysis in respect of investment portfolios to determine market risk.
Risk management is carried out by senior finance executives ('finance') under policies approved by the Board of Directors
('the Board'). These policies include identification and analysis of the risk exposure of the group and appropriate
procedures, controls and risk limits. Finance identifies, evaluates and hedges financial risks within the group's operating
units. Finance reports to the Board on a monthly basis.
Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices, such as foreign exchange rates and interest rates. The objective of market risk management is to manage
and control market risk exposures within acceptable parameters, while optimising the return.
Foreign currency risk
The group undertakes certain transactions denominated in foreign currency and is exposed to foreign currency risk
through foreign exchange rate fluctuations.
Foreign exchange risk arises from future commercial transactions and recognised financial assets and financial liabilities
denominated in a currency that is not the entity's functional currency. The risk is measured using sensitivity analysis and
cash flow forecasting.
ATOMO ANNUAL REPORT 2024
58
Atomo Diagnostics Limited
Notes to the Financial Statements
For the period ended 30 June 2024
Note 21. Financial instruments (continued)
The carrying amount of the group's foreign currency denominated financial assets and financial liabilities at the reporting
date were as follows:
Assets
Liabilities
30 June 2024 30 June 2023 30 June 2024 30 June 2023
Consolidated
AUD
AUD
AUD
AUD
US dollars
487,161
869,000
199,237
26,510
Pound Sterling
256,952
20,066
114
-
South African Rand
1,135,323
233,170
77,701
29,291
Euros
5,032
-
2,972
-
Japanese Yuan
-
-
-
1,075
1,884,468
1,122,236
280,024
56,876
Reasonably possible movements in the Australian dollar against all other currencies as at 30 June 2024 would have
affected the measurement of financial instruments denominated in a foreign currency and affected profit or loss and
equity by the amounts shown below. This analysis assumes that all other variables remain constant and ignores any
impact of forecast sales and purchases:
AUD strengthened
AUD weakened
Consolidated - 30 June 2024
% change
Effect on
profit before
tax
Effect on
equity
% change
Effect on
profit before
tax
Effect on
equity
AUD Strengthening
10%
(145,859)
(145,859)
10%
178,272
178,272
Price risk
The group is not exposed to any significant price risk.
Interest rate risk
As at 30 June 2024, the group was not exposed to any significant interest rate risk. There is minimal exposure to the
impact of adverse changes in benchmark interest rates.
The group was exposed to variable interest rate risks on cash and short-term deposits. A reasonably possible change of
100 basis points in interest rates during the year would have increased or decreased profit before tax by $51,139 (2023:
$88,253). This analysis assumes that all other variables remain constant.
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the
group. The group has a strict code of credit, including obtaining agency credit information, confirming references and
setting appropriate credit limits. The group obtains guarantees where appropriate to mitigate credit risk. The maximum
exposure to credit risk at the reporting date to recognised financial assets is the carrying amount, net of any provisions
for impairment of those assets, as disclosed in the statement of financial position and notes to the financial statements.
Generally, trade receivables are written off when there is no reasonable expectation of recovery. Indicators of this include
the failure of a debtor to engage in a repayment plan, no active enforcement activity and a failure to make contractual
payments for a period greater than 1 year.
Liquidity risk
Liquidity risk is the risk that the group will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The group manages liquidity risk by maintaining
adequate cash reserves and available borrowing facilities by continuously monitoring actual and forecast cash flows and
matching the maturity profiles of financial assets and liabilities.
ATOMO ANNUAL REPORT 2024
59
Atomo Diagnostics Limited
Notes to the Financial Statements
For the period ended 30 June 2024
Note 21. Financial instruments (continued)
Financing arrangements
The group has no used or unused financing facilities in place as at 30 June 2024 (2023: nil).
Remaining contractual maturities
The following tables detail the group's remaining contractual maturity for its financial instrument liabilities. The tables
have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the
financial liabilities are required to be paid. The tables include both interest and principal cash flows disclosed as remaining
contractual maturities and therefore these totals may differ from their carrying amount in the statement of financial
position.
Weighted
average
interest rate 1 year or less
Between 1
and 2 years
Between 2
and 5 years
Over 5 years
Total
contractual
maturities
Consolidated - 30 June
2024
%
AUD
AUD
AUD
AUD
AUD
Non-derivatives
Non-interest bearing
Trade payables
-
478,640
-
-
-
478,640
Other payables
-
295,536
-
-
-
295,536
Interest-bearing -
variable
Lease liability
5.46%
86,757
-
-
-
86,757
Total non-derivatives
860,933
-
-
-
860,933
Weighted
average
interest rate 1 year or less
Between 1
and 2 years
Between 2
and 5 years
Over 5 years
Total
contractual
maturities
Consolidated - 30 June
2023
%
AUD
AUD
AUD
AUD
AUD
Non-derivatives
Non-interest bearing
Trade payables
-
179,340
-
-
-
179,340
Other payables
-
682,291
-
-
-
682,291
Interest-bearing -
variable
Lease liability
5.46%
180,325
78,505
7,598
-
266,428
Total non-derivatives
1,041,956
78,505
7,598
-
1,128,059
The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed
above.
Fair value of financial instruments
Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value.
ATOMO ANNUAL REPORT 2024
60
Atomo Diagnostics Limited
Notes to the Financial Statements
For the period ended 30 June 2024
Note 22. Remuneration of auditors
During the financial period the following fees were paid or payable for services provided by BDO Audit Pty Ltd, the auditor
of the company:
Consolidated
30 June 2024 30 June 2023
AUD
AUD
Audit services - BDO Australia
Audit or review of the financial statements
110,500
101,000
Other services - BDO Australia & US
Tax advisory services
20,510
20,431
Total
131,010
121,431
Note 23. Related party transactions
Parent entity
Atomo Diagnostics Limited is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in note 24.
Key management personnel compensation
The aggregate compensation made to directors and other members of key management personnel of the group is set out
below:
Consolidated
30 June 2024 30 June 2023
Short-term employee benefits
1,211,193
1,499,635
Post-employment benefits
74,020
82,529
Long-term benefits
10,658
13,752
Share-based payments
11,350
26,750
Total key management personnel compensation
1,307,221
1,622,666
Further details relating to key management personnel compensation are set out in the remuneration report included in
the directors' report.
Key management personnel transactions
Directors and other key management personnel hold 11.9% of the issued capital of the company as at 30 June 2024 (30
June 2023: 24.8%).
Transactions with other related parties
There were no transactions with other related parties during the year (2023: nil).
ATOMO ANNUAL REPORT 2024
61
Atomo Diagnostics Limited
Notes to the Financial Statements
For the period ended 30 June 2024
Note 24. Parent entity information
Statement of Profit or Loss and Other Comprehensive Income
Parent
30 June
2024
30 June
2023
AUD
AUD
Statement of profit and loss and other comprehensive income
Loss for the year
(6,866,250)
(6,226,216)
Other comprehensive income
-
-
Total comprehensive income
(6,866,250) (6,226,216)
Statement of Financial Position
Parent
30 June
2024
30 June
2023
AUD
AUD
Statement of financial position
Assets
Total current assets
7,155,284
10,190,304
Total non-current assets
4,856,344
7,221,265
Total assets
12,011,628
17,411,569
Liabilities
Total current liabilities
2,457,888
2,771,389
Total non-current liabilities
106,515
104,611
Total liabilities
2,564,403
2,876,000
Equity
Share capital
70,086,549
68,036,837
Share based payment reserve
206,727
478,533
Retained earnings
(60,846,052) (53,979,802)
Total Equity
9,447,224
14,535,568
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
None.
Contingent liabilities
There were no contingent liabilities attributed to the parent entity as at 30 June 2024 (2023: nil).
Capital commitments - Property, plant and equipment
Inventory commitments relate to volumes of devices committed to be purchased throughout the year for sale to
customers.
Material accounting policy information
The accounting policies of the parent entity are consistent with those of the group, as disclosed in note 1.
●
Investments in subsidiaries are accounted for at cost, less any impairment, in the Parent Entity.
●
Dividends received from subsidiaries are recognised as other income by the Parent Entity and its receipt may be an
indicator of an impairment of the investment.
ATOMO ANNUAL REPORT 2024
62
Atomo Diagnostics Limited
Notes to the Financial Statements
For the period ended 30 June 2024
Note 25. Interests in subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in
accordance with the accounting policy described in note 1:
Ownership interest
Principal place of business /
30 June 2024 30 June 2023
Name
Country of incorporation
%
%
Parent entity:
Atomo Diagnostics Limited
Australia
-
-
Subsidiaries:
Atomo Australia Pty Limited
Australia
100%
100%
Atomo Limited
United Kingdom
100%
100%
Atomo US Inc.
United States
100%
100%
Atomo Operations US LLC
United States
100%
100%
Branch operations:
Atomo South Africa (operating branch of Atomo
Australia Pty Limited)
South Africa
100%
100%
Note 26. Events after the reporting period
No matter or circumstance has arisen since 30 June 2024 that has significantly affected, or may significantly affect the
group's operations, the results of those operations, or the group's state of affairs in future financial years.
Note 27. Reconciliation of loss after income tax to net cash used in operating activities
Consolidated
30 June 2024 30 June 2023
AUD
AUD
Loss after income tax expense for the period
(6,847,803)
(9,957,632)
Adjustments for:
Depreciation and amortisation
1,659,270
1,891,787
Share-based payments
35,413
46,460
Foreign exchange differences
4,225
(35,947)
Finance costs
9,520
14,987
Provision for expected credit loss
15,014
34,934
Impairment of intangible assets
798,990
-
Change in operating assets and liabilities:
Decrease/(increase) in trade and other receivables
(575,127)
818,976
Decrease in inventories
297,909
1,283,981
Increase/(decrease) in trade and other payables
(87,456)
57,146
Increase/(decrease) in employee benefits
3,941
(2,363)
Net cash used in operating activities
(4,686,104)
(5,847,671)
Note 28. Earnings per share
Consolidated
30 June 2024 30 June 2023
AUD
AUD
Loss after income tax attributable to the owners of Atomo Diagnostics Limited
(6,847,803)
(9,957,632)
Loss after income tax attributable to the owners of Atomo Diagnostics Limited
used in calculating diluted earnings per share
(6,847,803)
(9,957,632)
ATOMO ANNUAL REPORT 2024
63
Atomo Diagnostics Limited
Notes to the Financial Statements
For the period ended 30 June 2024
Note 28. Earnings per share (continued)
Number
Number
Weighted average number of ordinary shares used in calculating basic earnings per share
634,658,764
570,890,991
Adjustments for calculation of diluted earnings per share:
No adjustments given that in a loss situation , this would be anti-dilutive
-
-
Weighted average number of ordinary shares used in calculating diluted
earnings per share
634,658,764
570,890,991
AUD Cents
AUD Cents
Basic earnings per share
(1.079)
(1.744)
Diluted earnings per share
(1.079)
(1.744)
Note 29. Share-based payments
Set out below are summaries of options granted under the plan:
30 June 2024
Balance at
Expired/
Balance at
Exercise
the start of
forfeited/
the end of
Grant date
Expiry date
price
the period
Granted
Exercised
other
the period
14/04/2020
14/04/2024
AUD0.250
533,333
-
-
(533,333)
-
25/08/2022
14/04/2024
AUD0.250
1,079,999
-
-
(1,079,999)
-
14/04/2020
14/04/2025
AUD0.250
533,333
-
-
-
533,333
14/04/2020
14/04/2026
AUD0.250
533,334
-
-
-
533,334
31/05/2021
30/04/2024
AUD0.400
2,000,000
-
-
(2,000,000)
-
31/05/2021
30/04/2024
AUD0.600
2,000,000
-
-
(2,000,000)
-
01/07/2023
01/07/2026
AUD0.035
-
2,440,000
-
(320,000)
2,120,000
01/07/2023
01/07/2027
AUD0.035
-
3,660,000
-
(480,000)
3,180,000
22/08/2023
22/08/2026
AUD0.047
-
568,333
-
-
568,333
19/10/2023
22/08/2026
AUD0.047
-
500,000
-
(250,000)
250,000
22/08/2022
14/04/2025
AUD0.250
1,199,999
-
-
-
1,199,999
7,879,998
7,168,333
-
(6,663,332)
8,384,999
30 June 2023
Balance at
Expired/
Balance at
Exercise
the start of
forfeited/
the end of
Grant date
Expiry date
price
the period
Granted
Exercised
other
the period
11/04/2019
11/04/2023
AUD0.160
4,800,000
-
-
(4,800,000)
-
14/04/2020
14/04/2204
AUD0.250
533,333
-
-
-
533,333
08/11/2021
14/04/2024
AUD0.250
1,079,999
-
-
-
1,079,999
14/04/2020
14/04/2025
AUD0.250
533,333
-
-
-
533,333
25/08/2022
14/04/2025
AUD0.250
-
1,199,999
-
-
1,199,999
14/04/2020
14/04/2026
AUD0.250
2,266,666
-
-
(1,733,332)
533,334
31/05/2021
30/04/2024
AUD0.600
2,000,000
-
-
-
2,000,000
31/05/2021
30/04/2024
AUD0.400
2,000,000
-
-
-
2,000,000
13,213,331
1,199,999
-
(6,533,332)
7,879,998
The weighted average share price during the financial period was AUD[0.09] ([2023]: AUD[0.22]).
The weighted average remaining contractual life of options outstanding at the end of the financial period was [1.8] years
([2023]: [1.2] years).
In current and prior financial years, the Company issued options to employees, directors and key stakeholders to align
the interests of those parties through the sharing of a personal interest in the future growth and development of the
Company and to provide a means of attracting and retaining skilled and experienced eligible persons.
ATOMO ANNUAL REPORT 2024
64
Atomo Diagnostics Limited
Consolidated entity disclosure statement
As at 30 June 2024
As required by the Treasury Laws Amendment (Making Multinationals Pay Their Fair Share - Integrity and Transparency)
Act 2024, the following provides information about the subsidiaries included in the consolidated financial statements of
the group as at 30 June 2024.
Place formed /
Entity name
Entity type
Country of
incorporation
Ownership
interest %
Tax residency
Atomo Diagnostics Limited
Body corporate
Australia
100.00% Australia
Atomo Australia Pty Limited
Body corporate
Australia
100.00% Australia
Atomo Limited
Body corporate
United Kingdom
100.00% United Kingdom
Atomo US Inc.
Body corporate
United States of America
100.00% United States of America
Atomo Operations US LLC
Body corporate
United States of America
100.00% United States of America
Atomo South Africa (operating
branch of Atomo Australia Pty
Limited)
Body corporate
South Africa
100.00% South Africa
As at 30 June 2024 no entities included were a trustee of a trust within the consolidated entity, a partner in a partnership
within the consolidated entity or a participant in a joint venture within the consolidated entity.
In determining the tax residency, the group has applied the following interpretations:
Australian tax residency
The consolidated entity has applied current legislation and judicial precedent, including having regard to the Tax
Commissioner's public guidance in Tax Ruling RD 2018/5.
Foreign tax residency
Where necessary, the consolidated entity has used independent tax advisors in foreign jurisdictions to assist in
determining tax residency and ensure compliance with applicable foreign tax legislation.
ATOMO ANNUAL REPORT 2024
65
Atomo Diagnostics Limited
Directors' declaration
For the period ended 30 June 2024
In the directors' opinion:
●
the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards, the
Corporations Regulations 2001 and other mandatory professional reporting requirements;
●
the attached financial statements and notes comply with International Financial Reporting Standards as issued by the
International Accounting Standards Board as described in note 1 to the financial statements;
●
the attached financial statements and notes give a true and fair view of the group's financial position as at 30 June
2024 and of its performance for the financial period ended on that date;
●
there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due
and payable; and
●
the consolidated entity disclosure statement required by subsection 295(3A) of the Corporations Act 2001 is true and
correct.
The directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
On behalf of the directors
___________________________
John Keith
Chair
29 August 2024
Sydney
ATOMO ANNUAL REPORT 2024
66
Tel: +61 2 9251 4100
Fax: +61 2 9240 9821
www.bdo.com.au
Level 11, 1 Margaret Street
Sydney NSW 2000
Australia
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of
BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member
firms. Liability limited by a scheme approved under Professional Standards Legislation.
INDEPENDENT AUDITOR'S REPORT
To the members of Atomo Diagnostics Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Atomo Diagnostics Limited (the Company) and its subsidiaries
(the Group), which comprises the consolidated statement of financial position as at 30 June 2024, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
of changes in equity and the consolidated statement of cash flows for the year then ended, and notes
to the financial report, including material accounting policy information, the consolidated entity
disclosure statement and the directors’ declaration.
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Act 2001, including:
(i)
Giving a true and fair view of the Group’s financial position as at 30 June 2024 and of its
financial performance for the year ended on that date; and
(ii)
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 Corporations
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Material uncertainty related to going concern
We draw attention to Note 1 in the financial report which describes the events and/or conditions which
give rise to the existence of a material uncertainty that may cast significant doubt about the group’s
ATOMO ANNUAL REPORT 2024
67
ability to continue as a going concern and therefore the group may be unable to realise its assets and
discharge its liabilities in the normal course of business. Our opinion is not modified in respect of this
matter.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters. In addition to the matter described in the Material uncertainty
related to going concern section, we have determined the matters described below to be the key audit
matters to be communicated in our report.
Revenue recognition
Key audit matter
How the matter was addressed in our audit
As disclosed in Note 3, the Group recognised revenue
of $4,086,535 for the year ended 30 June 2024.
Revenue was identified as a key audit matter as it is a
key performance indicator to the users of the financial
report.
Our procedures, amongst others, included:
•
Reviewed whether the revenue recognition policies
are in accordance with Australian Accounting
Standards and the Group’s accounting policies as
described in Note 1;
•
Substantive testing around year end to ensure
revenue is correctly recorded in the period to
which it relates;
•
Performed analytical procedures to identify
variances in expectations on revenue recognition
for further investigation; and
•
Selected a sample of revenue transactions during
the year and substantively tested to ensure
revenue has been appropriately reflected in the
financial statements for the year ended 30 June
2024.
ATOMO ANNUAL REPORT 2024
68
Carrying value of intangibles
Key audit matter
How the matter was addressed in our audit
As at 30 June 2024, the Group recognised intangible
assets with a carrying value of $2,071,920 as disclosed
in Note 12.
The valuation of intangible assets is significant to our
audit because of the carrying value in the Statement
of Financial Position and the judgements and
estimation required by management in assessing
recoverability.
The Group has determined the recoverable amount
through a value-in-use calculation for the cash
generating unit. This process is judgmental and based
on management’s assumptions, specifically those in
relation to revenue growth rates, estimated
expenditure and discount rates.
Our procedures, amongst others, included:
•
Obtained management’s value-in-use model and
assessment of impairment;
•
Critically assessed the valuation and impairment
analysis completed by management, including the
mathematical accuracy, reasonableness of the
assumptions and estimates used to determine the
recoverable amount of its intangible assets;
•
Together with BDO Valuation specialists, assessed
the reasonableness of the discount rates applied by
management;
•
Where appropriate, considered the historical
actual results to those budgeted, to assess the
quality of management’s forecasts; and
•
Evaluated the sensitivity analysis applied to the
discounted cash flow model to assess the
disclosure in the financial statements.
Other information
The directors are responsible for the other information. The other information comprises the
information in the Group’s annual report for the year ended 30 June 2024, but does not include the
financial report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
ATOMO ANNUAL REPORT 2024
69
Responsibilities of the directors for the Financial Report
The directors of the Company are responsible for the preparation of:
a)
the financial report that gives a true and fair view in accordance with Australian Accounting
Standards and the Corporations Act 2001 and
b)
the consolidated entity disclosure statement that is true and correct in accordance with the
Corporations Act 2001, and
for such internal control as the directors determine is necessary to enable the preparation of:
i) the financial report that gives a true and fair view and is free from material misstatement, whether
due to fraud or error; and
ii) the consolidated entity disclosure statement that is true and correct and is free of misstatement,
whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our auditor’s report.
ATOMO ANNUAL REPORT 2024
70
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in the directors’ report for the year ended 30 June
2024.
In our opinion, the Remuneration Report of Atomo Diagnostics Limited, for the year ended 30 June
2024, 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.
BDO Audit Pty Ltd
Gareth Few
Director
Sydney, 29 August 2024
ATOMO ANNUAL REPORT 2024
71
Atomo Diagnostics Limited
Shareholder information
For the period ended 30 June 2024
The shareholder information set out below was applicable as at 6 September 2024.
Number of security holders
At the specified date, there were 6,806 holders of ordinary shares (quoted and unquoted) and 18 holders of options
(unquoted) over ordinary shares. These were the only classes of equity securities on issue.
Distribution of equitable securities
Analysis of number of equitable security holders by size of holding:
Ordinary shares
Number
Number
of holders
of shares
1 to 1,000
276
165,211
1,001 to 5,000
2,773
7,396,431
5,001 to 10,000
1,113
8,983,484
10,001 to 100,000
2,057
69,419,464
100,001 and over
587
553,237,720
Total
6,806
639,202,310
Equity security holders
Twenty largest quoted equity security holders
The names of the twenty largest security holders of quoted equity securities are listed below:
Ordinary shares
% of total
shares
Number
held
issued
GZ Family Holdings Pty Ltd
79,787,536
12.48
Dalraida Holdings Pty Limited
65,120,000
10.19
Global Health Investment Fund
64,811,280
10.14
Mr Xiaoyi Lin
11,880,000
1.86
Grand Challenges Canada
11,390,824
1.78
Liverbird Pty Ltd
10,931,653
1.71
Australia West Holdings Pty
10,500,000
1.64
Australia North Holdings Pty
9,580,000
1.50
ID&E Pty Ltd
9,032,248
1.41
Mark Andrew Smith
7,790,224
1.22
Mr Ian Fredrick Johnson
7,506,080
1.17
John Michael Kelly
7,370,248
1.15
Leo James Lynch
7,321,121
1.15
Citicorp Nominees Pty Limited
6,296,566
0.99
Mr Ankur Choudhary
5,887,126
0.92
Ruth Karen Devney
5,626,408
0.88
Rue Des Rocs Pty Ltd
4,300,000
0.67
Sokolov Pty Ltd
4,031,888
0.63
H & L Management Pty Ltd
4,000,000
0.63
Miss Lisa Marie Mackenzie
3,351,968
0.52
Total top 20 shareholders
336,515,170
52.64
ATOMO ANNUAL REPORT 2024
72
Atomo Diagnostics Limited
Shareholder information
For the period ended 30 June 2024
Substantial holders
Substantial holders in the company are set out below:
Ordinary shares
% of total
shares
Number
held
issued
GZ Family Holdings Pty Ltd
79,787,536
12.48
John Kelly
72,490,248
11.34
Global Health Investment Fund LLC
64,811,280
10.14
Restricted securities
There are no unquoted restricted ordinary shares securities and unquoted options over ordinary shares as at 30 June
2024.
Option Holding Distribution
Size of option holding
Number of
holders
Number of
options
% of Issued
Options
1 to 1,000
-
-
-
1,001 to 5,000
-
-
-
5,001 to 10,000
-
-
-
10,001 to 100,000
-
-
-
100,001 and over
18
8,384,999
100%
Total
18
8,384,999
Unquoted Options Over Ordinary Shares
There were 8,384,999 unquoted options over ordinary shares on issue as follows:
Unquoted options - description
Number of
options
Number of
holders
Options exercisable at 0.25 expiring at various dates
2,266,666
3
Options exercisable at 0.047 expiring at various dates
818,333
3
Options exercisable at 0.035 expiring at various dates
5,300,000
13
No option holder holds more than 20% of the unquoted options on issue.
Voting rights
The voting rights attached to ordinary shares are set out below:
Ordinary shares
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each
share shall have one vote.
There are no other classes of equity securities.
Unmarketable Parcels
There are 5,104 holders of an unmarketable parcel of shares based on the closing market price of $0.021 at the specified
date.
Other ASX Required Information
During the period between admission to the Official List of ASX and the end of the reporting period, the company used
the cash and assets in a form readily convertible to cash that it had at the time of admission to the ASX, in a way
consistent with its business objectives. This statement is made pursuant to ASX Listing Rule 4.10.19.
ATOMO ANNUAL REPORT 2024
73
Atomo Diagnostics Limited
Corporate directory
For the period ended 30 June 2024
Directors
John Keith (Chair & Non-Executive Director)
John Kelly (Managing Director and CEO)
Paul Kasian (Non-Executive Director)
Deborah Neff (Non-Executive Director)
Cheri Walker (Non- Executive Director)
Company secretary
Mathew Watkins
Registered office
Level 1
3 - 5 George Street
Leichhardt NSW 2040
Tel: +61 2 9099 4750
Principal place of business
Level 1
3 - 5 George Street
Leichhardt NSW 2040
Tel: +61 2 9099 4750
Share register
Boardroom Pty Limited
Level 8
210 George Street
Sydney NSW 2000
Auditor
BDO Audit Pty Ltd
Level 11, 1 Margaret Street
Sydney NSW 2000
Solicitors
HWL Ebsworth Lawyers
Level 14, Australia Square
264 - 178 George Street
Sydney NSW 2000
Stock exchange listing
Atomo Diagnostics Limited shares are listed on the Australian Securities Exchange
(ASX code: AT1)
Website
www.atomodiagnostics.com
Corporate Governance
Statement
www.atomodiagnostics.com/governance
ATOMO ANNUAL REPORT 2024
74
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ATOMO ANNUAL REPORT 2024
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ATOMO ANNUAL REPORT 2024
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Atomo Diagnostics Limited
ACN 142 925 684
atomodiagnostics.com