BENITEC
BIOPHARMA LTD
ANNUAL REPORT 2017
Giving disease the silent treatment ™
BENITEC
BIOPHARMA
LIMITED
Annual
Report
2017
Contents
Directors
Report
Corporate
governance
Auditor's
independence
declaration
Statement
of
profit
or
loss
and
other
comprehensive
income
Statement
of
financial
position
Statement
of
changes
in
equity
Statement
of
cash
flow
Notes
to
the
financial
statements
Directors’
declaration
Independent
auditor's
report
to
the
members
of
Benitec
Biopharma
Limited
Corporate
directory
Shareholder
information
General
information
1
26
27
28
29
30
31
32
57
58
62
63
The
financial
statements
cover
Benitec
Biopharma
Limited
as
a
Group
consisting
of
Benitec
Biopharma
Limited
and
the
entities
it
controlled
at
the
end
of,
or
during,
the
year.
The
financial
statements
are
presented
in
Australian
dollars,
which
is
Benitec
Biopharma
Limited's
functional
and
presentation
currency.
Benitec
Biopharma
Limited
is
a
listed
public
company
limited
by
shares,
incorporated
and
domiciled
in
Australia.
Benitec
Biopharma
Limited
shares
are
listed
on
the
Australian
Securities
Exchange
in
Australia
(ASX:
BLT)
it
is
also
listed
on
the
NASDAQ
Global
Select
Market
in
United
States
(NASDAQ:
BNTC;
NASDAQ:
BNTCW).
Its
registered
office
and
principal
place
of
business
is:
Suite
1201,
99
Mount
Street
North
Sydney
NSW
2060
A
description
of
the
nature
of
the
Group's
operations
and
its
principal
activities
are
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
August
29,
2017.
The
directors
have
the
power
to
amend
and
reissue
the
financial
statements.
Chairman’s and CEO’s Letter
Dear Shareholder
We are pleased to present Benitec Biopharma’s Annual Report for the 2017 financial year.
Over the past few years we have been focused on building a broad scientific pipeline of innovative therapeutics by
harnessing the power of DNA-directed RNA interference (or ddRNAi). This unique platform technology combines gene
therapy and gene silencing to change treatment paradigms of human disease. We are translating our science into
measurable clinical outcomes which we are hopeful will result in significant patient benefit and commercial value for
Benitec. 2017 has led us to the inflection point which we are now at, as we transition to becoming a clinical stage company
once again.
Reflecting on 2017, there were some key achievements that have defined our path to value creation. We note some of
these were:
•
•
•
•
•
•
•
Nant Capital made a strategic investment in Benitec and brought in Phase II oncology clinical asset
The European Union granted orphan drug designation for oculopharyngeal muscular dystrophy (OPMD)
Initial OPMD ‘silence and replace’ preclinical data was published in Nature Communications
Proof of concept established for our ocular delivery of gene therapy
Pivotal preclinical efficacy data with BB-103 in hepatitis B
Pre-IND meeting with US FDA informed a clear and expeditious path to the clinic for our hepatitis B asset
Australian R&D grant income of A$10.5m for 2016-2017 fiscal year
One of our prominent programs, BB-401 the antisense EGFR asset for head and neck squamous cell carcinoma, is scheduled
to enter the clinic in a Phase 2 human study in the first quarter of calendar year 2018. EGFR is overexpressed in up to 90%
of these types of lesions and BB-401 performed well in previous early stage clinical studies in patients with forms of the
disease that was refractory to existing therapies. Manufacturing of the clinical supplies to support the Phase 2 trial
commenced in May of this year and we have been working with a team of oncology key opinion leaders from the US, UK
and Australia to review this prior clinical trial data and assist in designing a robust Phase 2 clinical study.
Our second leading program, OPMD, is planned for clinic entry in the second half of calendar year 2018. OPMD is a rare
progressive, muscle-wasting disease caused by mutation in the poly(A)-binding protein nuclear 1 gene, that is
characterised by eyelid drooping, swallowing difficulties, and proximal limb weakness. There are currently no approved
drugs for OPMD. Earlier in the year, we and our collaborators published preclinical data in the journal Nature
Communications, which showed the utility of the ‘silence and replace’ based approach. It clearly demonstrated that the
treatment could correct several phenotypes of the disease including significantly reducing the levels of fibrosis and
intranuclear inclusions, the latter of which is the hallmark of the disease. It also showed muscle strength restoring back to
normal levels in an animal model of the disease. More recently, we released news of a significantly improved construct
for OPMD, through the development of our innovative single vector system to both silence and replace the OPMD disease-
causing gene. We have demonstrated that this single ‘silence and replace’ vector system (termed BB-301) can restore
muscular function in a preclinical mouse model that replicates this debilitating disease. Looking forward we anticipate
meeting with the regulatory agencies in Canada, US as well as in Europe to discuss the planned IND-enabling studies and
clinical development plan. We have engaged some of the world’s foremost clinicians and specialists in dysphagia to help
develop the clinical platform and to advance BB-301 into the clinic as expeditiously as possible.
We want to take this opportunity to thank our dedicated team who have served with distinction and thank our
shareholders for their ongoing support. We remain committed to developing our ddRNAi technology, a novel combination
of gene therapy and gene silencing, to change treatment paradigms of human disease. We look forward to an exciting year
ahead and to becoming a multi-stage clinical company by the end of calendar year 2018.
Peter Francis
Chairman
Greg West
Chief Executive Officer
BENITEC
BIOPHARMA
LIMITED
Directors'
Report
for
the
year
ended
June
30,
2017
The
directors
present
their
report,
together
with
the
financial
statements,
on
the
consolidated
entity
(referred
to
hereafter
as
the
'Group')
consisting
of
Benitec
Biopharma
Limited
(referred
to
hereafter
as
the
'Company'
or
'parent
entity')
and
the
entities
it
controlled
at
the
end
of,
or
during,
the
year
ended
30
June
2017.
Directors
The
following
persons
were
directors
of
the
Company
during
the
whole
of
the
period
and
up
to
the
date
of
this
report,
unless
otherwise
noted:
Mr
Peter
Francis
(Chairman)
Mr
Kevin
Buchi
Dr
John
Chiplin
Ms
Megan
Boston
(appointed
on
August
16,
2016)
Dr
Jerel
A
Banks
(appointed
on
October
26,
2016)
Mr
Iain
Ross
(retired
September
30,
2016)
Principal
activities
During
the
financial
year
the
principal
continuing
activities
of
the
Group
consisted
of
development
of
the
Group’s
therapeutic
pipeline
and
pre-‐clinical
programs,
funding,
and
protecting
and
building
the
IP
estate.
The
Group
has
a
pipeline
of
in-‐house
and
partnered
therapeutic
programs
based
on
its
patented
gene-‐
silencing
technology,
ddRNAi.
It
is
developing
treatments
for
chronic
and
life-‐threatening
human
conditions
such
as
oculopharyngeal
muscular
dystrophy,
oncology,
wet
age-‐related
macular
degeneration,
and
hepatitis
B
based
on
this
technology.
In
addition,
the
Group
has
licensed
its
ddRNAi
technology
to
other
biopharmaceutical
companies
who
are
progressing
their
programs
towards
the
clinic
for
applications
including
HIV/AIDS,
retinitis
pigmentosa,
cancer
immunotherapy,
Huntington’s
disease,
and
intractable
neuropathic
pain.
Dividends
There
were
no
dividends
paid,
recommended
or
declared
during
the
current
or
previous
financial
year.
Result
The
loss
for
the
Group
after
providing
for
income
tax
amounted
to
$5.690m
(30
June
2016:
$24.778m).
The
$19.088m
reduction
in
loss
is
explained
by:
• Increase
in
R&D
Grant
income
of
$6.917m:
Grant
income
for
the
year
was
$10.507m.
This
was
comprised
of
a
$6.274m
grant
received
during
the
year
for
the
12
months
ended
30
June
2016
and
$4.233m
relating
to
the
inclusion
of
an
estimation
of
the
Grant
income
for
the
year
end
June
30,
2017.
In
the
current
reporting
period,
additional
detailed
reporting
systems
were
implemented
to
allow
a
reliable
estimate
to
be
made
of
the
grant
income
that
is
expected
to
be
received
for
the
current
period,
hence
grant
income
for
the
current
reporting
period
has
been
taken
to
account.
In
the
previous
corresponding
period,
the
only
Grant
income
taken
to
account
was
$3.590m
for
the
period
ending
June
30,
2015,
which
is
the
time
at
which
the
Grant
income
was
able
to
be
reliably
estimated.
Page
|
1
BENITEC
BIOPHARMA
LIMITED
Directors'
Report
for
the
year
ended
June
30,
2017
continued
Results
continued
• Reduction
in
R&D
development
cost
of
$6.362m:
R
and
D
expenditure
was
reduced
from
the
previous
year,
largely
due
to
inclusion
in
the
previous
year
of
$2.5m
expenditure
relating
to
the
acquisition
of
full
rights
of
a
preclinical
hepatitis
B
program
from
its
collaborator,
Biomics
Biotechnologies.
The
current
year
also
showed
the
effect
of
reduced
expenditure
on
the
cancelled
hepatitis
C
program
and
non-‐small
cell
lung
cancer
program.
• Employee
and
share
based
expenses
reduced
by
$2.628m:
Due
to
management
restructure
and
fewer
employee
options
being
issued.
IPO
cost
of
$1.191m
in
prior
period
•
• Write
off
of
$1.800m
clinical
trial
prepayment
in
prior
period
Cash
flows
As
at
June
30,
2017,
the
Company
had
cash
on
hand
of
$17.375m.
This
was
a
decrease
of
$0.855m
from
June
30,
2016.This
was
due
to:
• Capital
Raisings:
During
the
year,
the
Company
raised
$7.9m
in
two
placements
a) On
October
24,
2016,
the
Company
entered
into
a
strategic
engagement
with
Nant
Capital,
LLC.
The
strategic
engagement
included
a
scientific
collaboration
in
clinical
programs
and
an
immediate
private
placement
to
Nant
Capital
LLC
of
29,305,819
ordinary
shares
in
the
Company,
representing
approximately
19.9%
of
the
company’s
outstanding
issued
capital
(for
a
post-‐issue
holding
of
approximately
16.7%).
The
shares
were
priced
at
$0.0895
per
share,
representing
the
7-‐
day
volume
weighted
average
price
of
the
ordinary
shares
on
the
ASX
prior
to
the
execution
of
a
share
purchase
subscription
agreement.
b)
On
March
13,
2017,
an
additional
29,305,819
fully
paid
ordinary
shares
were
issued
to
Nant
Capital
LLC
at
A$0.1859
per
share,
raising
A$5.45
million
for
the
Company.
As
a
result
of
this
placement
Nant
Capital
LLC
now
holds
28.57%
of
the
issued
capital.
• Operating
Cash
Outflow:
Operating
cash
outflow
was
$8.304m
comprising
expenditure
of
$15.896m
offset
by
government
R&D
grant
received
of
$6.226m
and
other
cash
receipts
of
$1.366m.
Review
of
Operations
The
Company
is
developing
a
proprietary
therapeutic
technology
platform
that
combines
RNA
interference
with
gene
therapy
for
the
goal
of
providing
sustained
long-‐lasting
silencing
of
disease-‐
causing
genes
from
a
single
administration.
The
Company
is
using
this
technology,
called
DNA-‐directed
RNA
interference,
or
ddRNAi,
to
develop
a
pipeline
of
product
candidates
in
several
chronic
and
life-‐threatening
human
disease
areas,
such
as
oculopharyngeal
muscular
dystrophy
(‘OPMD’),
head
and
neck
squamous
cell
carcinoma
(HNSCC),
age-‐related
macular
degeneration
(‘AMD’)
and
hepatitis
B
(‘HBV’).
By
combining
the
specificity
and
gene
silencing
effect
of
RNA
interference
with
gene
therapy,
ddRNAi
has
the
potential
to
produce
long-‐lasting
silencing
of
disease-‐causing
genes
from
a
single
administration,
which
could
eliminate
the
requirement
for
patient
compliance
to
take
regular
doses
of
medicine
for
long-‐term
management
of
their
disease.
Page
|
2
BENITEC
BIOPHARMA
LIMITED
Directors'
Report
for
the
year
ended
June
30,
2017
continued
Review
of
Operations
continued
The
Company’s
objective
is
to
become
the
leader
in
discovering,
developing,
clinically
validating
and
commercializing
ddRNAi-‐based
therapeutics
for
a
range
of
human
diseases
with
high
unmet
clinical
need
or
large
patient
populations
and,
as
a
result,
provide
a
better
life
for
patients
with
these
diseases.
The
Company’s
strategy
to
accomplish
this
goal
is
to:
• Continue
the
scientific
development
of
its
existing
pipeline
programs.
o
o
The
Company
will
continue
its
preclinical
research
efforts
for
its
ddRNAi
therapeutics
targeted
to
treat
patient
impacted
by
OPMD,
HNSCC,
AMD
and
HBV.
The
Company
is
also
finalizing
the
Phase
2
clinical
plans
for
BB-‐401,
its
anti-‐sense
EGFR
therapeutic
candidate
for
the
treatment
of
patients
with
HNSCC.
By
the
end
of
calendar
2018
the
Company
expects
to
be
in
the
clinic
for
HNSCC
and
OPMD.
The
Company
will
continue
to
advance
programs
in
core
disease
areas
to
the
appropriate
proof
of
concept
stage
before
it
may
seek
partnering
activities
for
each
program
to
co-‐
develop
an
asset
with
pharmaceutical
companies.
Where
appropriate
it
will
seek
to
progress
programs
through
to
commercialization
itself.
For
example,
its
pipeline
program
to
treat
an
orphan
indication,
OPMD,
is
seen
as
a
candidate
for
this
latter
approach,
and
in
January
2017,
the
European
Commission
granted
Orphan
Drug
Designation
for
BB-‐301
as
an
orphan
medicinal
product
for
the
treatment
of
OPMD.
• Prioritise
the
future
development
of
its
ddRNAi
technology
by
identifying
new
diseases
and
ddRNAi
strategies
with
a
high
probability
of
commercial
success
and
value
to
shareholders.
o
o
Each
of
the
Company’s
key
pipeline
indications
are
directed
towards
diseases
with
high
unmet
medical
need
or
large
patient
populations.
The
Company
believes
there
is
a
strong
rationale
for
treating
these
diseases
and
other
diseases
that
have
well-‐characterized
gene
targets
that
can
be
silenced,
thus
preventing
the
disease-‐causing
gene
from
being
expressed.
In
addition
to
progressing
its
pipeline
of
product
candidates,
the
Company
will
further
develop
and
improve
its
ddRNAi
platform
technology
and
its
associated
intellectual
in-‐licensing
of
complementary
property
technologies.
One
such
example
is
its
relationship
with
4D
Molecular
Therapeutics
LLC
(4DMT).
Under
the
collaboration
with
4DMT
the
Company
has
identified
novel
AAV
capsids
that
might
deliver
its
ddRNAi
constructs
to
the
retinal
cells
from
an
intravitreal
injection
to
treat
human
ocular
diseases.
in-‐house
development
and
through
• Establish
co-‐development
agreements
with
other
companies
using
its
scientific
capability
and
IP
platform.
o
The
adaptability
of
the
Company’s
platform
also
presents
an
opportunity
for
it
to
selectively
form
collaborations
to
expand
its
capabilities
and
product
offerings
into
a
range
of
diseases
and
potentially
to
more
broadly
accelerate
the
development
and
commercialization
of
ddRNAi
therapeutics.
Page
|
3
BENITEC
BIOPHARMA
LIMITED
Directors'
Report
for
the
year
ended
June
30,
2017
continued
Review
of
Operations
continued
Company
Pipeline
The
following
tables
set
forth
the
Company’s
product
candidates
and
their
development
status.
As
of
June
30
2017,
the
Company
has
four
key
pipeline
programs
in
development.
Highlights
of
progress
over
the
previous
year
include:
(1) Oculopharyngeal
Muscular
Dystrophy
(OPMD):
The
Company
is
developing
BB-‐301,
a
single
administration
ddRNAi-‐based
gene
therapy
to
correct
the
gene
defect
which
causes
the
disease
and
to
address
many
of
the
limitations
of
therapeutic
approaches
currently
available
and
those
in
development
for
OPMD.
OPMD
is
an
autosomal-‐dominant
inherited,
slow-‐progressing,
late-‐onset
degenerative
muscle
disorder
that
usually
starts
in
patients
during
their
40s
or
50s.
The
disease
is
manifested
by
progressive
swallowing
difficulties
(dysphagia)
and
eyelid
drooping
(ptosis).
OPMD
is
caused
by
a
specific
mutation
in
the
poly(A)-‐binding
protein
nuclear
1,
or
PABPN1,
gene.
OPMD
is
a
rare
disease
and
has
been
reported
in
at
least
33
countries.
Patients
suffering
with
OPMD
are
well
identified
and
are
geographically
clustered,
which
we
believe
should
simplify
clinical
development
and
in
house
commercialisation.
BB-‐301
is
a
monotherapy
delivered
using
an
AAV
vector
and
is
designed
to
silence
the
expression
of
the
mutant
PABPN1
gene
in
esophageal
muscle
cells
of
OPMD
patients
while
simultaneously
introducing
a
silencing-‐resistant
normal
form
of
the
gene.
We
believe
OPMD
is
well
suited
for
this
"silence
and
replace"
approach
since
the
genetic
mutation
is
well
characterized
and
the
target
tissue
is
relatively
small.
Once
validated,
we
believe
a
similar
approach
could
be
applied
to
other
inherited
disorders.
Page
|
4
BENITEC
BIOPHARMA
LIMITED
Directors'
Report
for
the
year
ended
June
30,
2017
continued
Review
of
Operations
continued
Key
milestones
achieved
over
the
last
12
months
and
next
steps
include:
o In
December
2016,
the
Company
signed
a
new
Research
and
Collaboration
Agreement
with
the
Royal
Holloway
University
of
London
(RHUL)
and
the
Institut
de
Myologie
(IM)
in
Paris
to
support
the
key
in
vivo
studies
with
BB-‐301
for
the
treatment
of
OPMD.
o In
January
2017,
the
Company
obtained
an
Orphan
Drug
Designation
from
the
European
Medicines
Agency
(EMA)
for
one
if
its
lead
clinical
candidate
for
the
treatment
of
OPMD.
This
designation
signifies
that
there
is
an
unmet
medical
need
for
OPMD
patients
and
provides
a
number
of
incentives
to
facilitate
the
clinical
development
of
our
innovative
gene
therapy
approach.
o In
April
2017,
the
Company
announced
that
the
initial
pre-‐clinical
efficacy
results
from
its
OPMD
collaboration
with
RHUL
and
IM
have
been
published
in
Nature
Communications.
The
key
results
from
these
studies
demonstrate
that
a
DNA
directed
RNA
interference
(ddRNAi)
approach
to
‘silence
and
replace’
the
mutant
PABPN1
protein,
results
in
the
correction
of
the
muscular
dystrophy
and
of
key
clinical
features
of
OPMD
including
a
progressive
atrophy
and
muscle
weakness
associated
with
nuclear
aggregates
of
insoluble
PABPN1.
These
data
were
generated
in
the
A17
mouse
model
that
expresses
the
mutant
PABPN1
gene
and
mimics
most
of
the
features
of
human
OPMD
patients.
o In
August
2017,
the
Company
announced
it
has
developed
a
new
single
vector
system
which
delivers
ddRNAi
constructs
to
both
silence
and
replace
the
mutant
gene
associated
with
OPMD.
The
single
vector
system
has
shown
activity
consistent
with
the
dual
vector
system
where
the
silence
and
replace
are
delivered
in
separate
vectors.
Being
a
single
product
simplifies
the
regulatory
process
and
reduce
the
complexity
of
the
clinical
strategy
for
BB-‐301.
The
Company
considers
this
a
significant
advancement
not
only
for
the
OPMD
program,
but
also
in
the
potential
treatment
of
other
orphan
diseases.
o The
Company
plans
to
advance
BB-‐301
into
human
clinical
trials
in
the
second
half
of
2018.
(1) Head
and
Neck
Squamous
Cell
Carcinoma:
Late
in
2016,
the
Company
acquired
rights
to
BB-‐401
from
Nant
Capital
and
is
developing
BB-‐401
for
the
treatment
of
HNSCC.
BB-‐401
is
a
DNA
plasmid
that
produces
an
antisense
RNA
that
targets
the
EGFR
mRNA
and
prevents
its
translation
into
its
cognate
protein
by
a
mechanism
of
action
best
described
as
post
transcriptional
gene
silencing.
EGFR
is
the
cell-‐surface
receptor
for
members
of
the
epidermal
growth
factor
family
(EGF
family)
of
extracellular
protein
ligands.
EGFR
is
a
well
validated
oncology
target
and
has
been
shown
to
be
a
key
driver
of
the
growth
of
HNSCC
lesions
with
more
than
80%
of
HNSCC
lesions
exhibiting
significantly
elevated
levels
of
EGFR
versus
concentrations
found
in
non-‐malignant
tissues.
Head
and
neck
cancers
usually
begin
in
the
moist
mucosal
surfaces
inside
the
head
and
neck,
such
as
inside
the
mouth
and
the
throat.
According
to
GlobalData
(Head
and
Neck
Squamous
Cell
Carcinoma
–
Opportunity
Analysis
and
Forecast
to
2024,
February
2016),
approximately
64,000
new
patients
will
be
diagnosed
annually
in
the
United
States
with
HNSCC
and
50%
of
the
patients
are
expected
to
develop
recurrent
or
metastatic
disease,
with
approximately
13,000
annual
deaths
expected
in
the
United
States
from
HNSCC.
Page
|
5
BENITEC
BIOPHARMA
LIMITED
Directors'
Report
for
the
year
ended
June
30,
2017
continued
Review
of
Operations
continued
Head
and
neck
cancers
are
more
than
twice
as
common
among
men
as
they
are
among
women.
Squamous
cell
carcinoma
of
the
head
and
neck
accounts
for
more
than
90%
of
all
head
and
neck
cancers,
and
more
than
50%
of
HNSCC
patients
present
with
Stage
III
or
higher
disease
(locally
advanced
or
metastatic),
which
has
higher
potential
for
progression
and
recurrence.
The
relative
five-‐year
survival
rate
for
metastatic
head
and
neck
cancers
is
<38%,
and
can
be
as
low
as
4%
for
recurrent
or
metastatic
Stage
IV
disease.
Total
drugs
sales
in
the
HNSCC
markets
in
the
seven
major
markets
(United
States,
France,
Germany,
Italy,
Spain,
United
Kingdom
and
Japan)
will
increase
from
$386
million
in
2014
to
$1.53
billion
in
2024,
at
a
Compound
Annual
Growth
Rate
(CAGR)
of
14.8%.
Key
milestones
achieved
over
the
last
12
months
and
next
steps
include:
o
Prior
to
the
Company’s
relationship
with
Nant
Capital,
clinical
studies
were
completed
by
University
of
Pittsburgh
as
well
as
the
University
of
Texas
Health
Sciences
Center
that
explored
the
anti-‐tumor
efficacy
of
BB-‐401
in
recurrent
and
metastatic
patients
with
advanced
HNSCC.
The
first
Phase
I
study
involved
17
patients
with
lesions
that
were
unresponsive
to
standard
anti-‐cancer
therapies.
In
this
study,
BB-‐401
(referred
to
as
EGFR-‐AS)
was
administered
to
target
malignant
lesions
once
per
week
for
four
weeks.
Key
findings
of
this
study
included:
Reductions
in
the
sizes
of
injected
malignant
lesions:
•
Five
of
the
patients
experienced
an
objective
response
which
provides
for
an
objective
response
rate
of
29%.
Two
subjects
experienced
a
100%
reduction
in
size
by
RECIST
and
three
patients
had
partial
responses
with
a
reduction
of
>30%
by
RECIST.
Thus
seven
patients,
or
41%,
reported
a
halt
in
disease
progression.
• An
additional
two
patients
had
reductions
between
19%
and
29%
of
the
original
size.
•
The
mean
duration
of
anti-‐tumor
response
was
6.5
months.
No
grade
3
or
grade
4
dose-‐limiting
toxicities
were
noted
in
the
Phase
I
study.
A
second
Phase
I
study
of
six
patients
evaluated
the
potential
for
BB-‐401
to
improve
the
efficacy
of
an
existing
multi-‐agent
anti-‐cancer
treatment
regimen
comprised
of
cetuximab
along
with
intensity-‐modulated
radiotherapy,
which
has
been
approved
for
treatment
of
locally
or
regionally
advanced
HNSCC.
The
combination
of
cetuximab
with
radiation
therapy
has
a
demonstrated
ORR
of
74%.
Reductions
of
29%
more
were
noted
in
five
of
six
patients
treated
with
BB-‐401
in
combination
with
radiation
therapy
and
cetuximab
resulting
in
an
ORR
of
83%.
We
intend
to
further
investigate
the
activity
of
single-‐agent
BB-‐
401
and
to
determine
to
the
best
position
for
BB-‐401
in
current
HNSCC
therapy.
The
Company’s
immediate
focus
for
BB-‐401
is
on
initiating
a
phase
2
clinical
study
early
in
calendar
year
2018.
In
parallel
to
returning
BB-‐401
to
the
clinic,
the
scientific
team
at
the
Company
is
using
its
ddRNAi
proprietary
technology
to
develop
BB-‐501
which
will
be
able
to
silence
the
expression
of
EGFR
and
EGFR
variant
III.
The
clinical
data
obtained
from
BB-‐401
study
will
be
used
to
inform
the
development
pathway
for
BB-‐501.
The
hypothesis
is
that
if
we
can
silence
EGFR,
which
has
been
shown
to
be
drivers
of
lesion
growth
in
HNSCC,
then
the
lesions
should
shrink
or
be
eradicated
completely.
The
Company
has
completed
the
selection
and
optimisation
of
the
shRNAs
and
have
already
moved
into
mouse
xenograft
models
to
test
for
in
vivo
efficacy.
The
Company
anticipates
that
BB-‐501
may
be
clinic
ready
in
calendar
2019.
Page
|
6
o
o
o
o
o
o
o
BENITEC
BIOPHARMA
LIMITED
Directors'
Report
for
the
year
ended
June
30,
2017
continued
Review
of
Operations
continued
(2) Age-‐related
macular
degeneration
(AMD):
The
Company
is
developing
a
ddRNAi-‐based
therapy
for
the
treatment
of
wet
AMD,
which
is
designated
BB-‐201.
The
ddRNAi
construct
in
BB-‐201
expresses
three
independent
shRNAs
designed
to
inhibit
the
expression
of
genes
that
encode
for
VEGF-‐a,
VEGF-‐b
and
PGF.
The
delivery
vector
for
BB-‐
201
is
comprised
of
a
novel
AAV
capsid
that
has
been
developed
in
collaboration
with
4DMT
and
is
designed
to
deliver
ddRNAi
constructs
to
the
retina
using
a
direct
intravitreal
injection.
The
aim
of
this
program
is
to
develop
a
therapeutic
that
provides
long-‐term
treatment
of
AMD
from
a
single
intravitreal
injection.
We
believe
this
could
replace
the
need
for
regular
subretinal
injections
of
protein
based
therapeutics
into
the
eye,
which
is
the
current
standard
of
care.
AMD
is
one
condition
that
leads
to
the
deterioration
of
the
eye's
macula.
The
macula
is
a
small
area
in
the
retina
that
is
responsible
for
central
vision.
AMD
is
the
leading
cause
of
blindness
and
visual
impairment
in
older
adults,
often
involving
blood
vessel
overgrowth
and
damage
to
the
retina
resulting
in
the
loss
of
vision
in
the
central
visual
field.
The
vascular
endothelial
growth
factor,
or
VEGF-‐a,
is
responsible
for
stimulating
the
new
blood
vessel
growth.
The
disease
occurs
in
two
forms,
wet
and
dry.
Dry
AMD
is
the
most
common
type
of
macular
degeneration
and
affects
85%
to
90%
of
the
people
with
AMD.
Dry
AMD
often
develops
into
wet
AMD.
Wet
AMD
is
the
more
advanced
type
of
AMD.
In
wet
AMD,
which
is
also
called
exudative,
or
neovascular,
AMD,
the
Bruch's
membrane
underlying
the
retina
thickens,
then
breaks.
The
oxygen
supply
to
the
macula
is
disrupted
and,
as
a
result,
new
abnormal
blood
vessels
grow
through
the
subretinal
membrane
towards
the
macula,
often
raising
the
retina.
The
blood
vessels
are
fragile,
and
often
leak
fluids
that
damage
the
macula.
VEGF-‐a
is
a
key
molecule
known
to
stimulate
the
new
blood
vessel
growth
in
wet
AMD.
Although
the
wet
form
of
the
disease
affects
only
10%
to
15%
of
those
who
have
AMD,
wet
AMD
accounts
for
90%
of
the
severe
vision
loss
caused
by
macular
degeneration.
According
to
a
study
published
in
JAMA
Ophthalmology,
AMD
is
the
leading
cause
of
irreversible
vision
loss
in
the
United
States,
affecting
an
estimated
1.75
million
people.
It
is
estimated
that
196
million
people
will
be
affected
by
AMD
worldwide
by
2020
according
to
a
study
published
in
Lancet
Global
Health.
Key
milestones
achieved
over
the
last
12
months
and
next
steps
include:
o
In
November
2014,
the
Company
entered
into
a
collaboration
with
4D
Molecular
Therapeutics
(4DMT)
to
identify
novel
AAV
capsids,
the
protein
shell
that
helps
deliver
our
ddRNAi
constructs
into
retinal
cells.
As
a
result
of
this
collaboration
the
Company
has
been
able
to
demonstrate
enhanced
transduction
of
ocular
tissues
with
several
novel
AAV
capsids.
Being
able
to
deliver
drugs
in
therapeutically
relevant
concentrations
is
a
key
challenge
in
drug
development.
The
Company
believe
these
outcomes
demonstrate
the
commercial
applicability
of
having
a
vector
that
can
transduce
the
retina
following
an
intravitreal
injection.
The
AMD
program
is
the
first
program
in
this
space
and
the
Company
anticipates
being
able
to
build
a
ddRNAi
franchise
for
other
ocular
indications,
in
particular
retinal
diseases,
using
these
novel
viral
vectors
as
a
key
component
in
that
platform.
Page
|
7
BENITEC
BIOPHARMA
LIMITED
Directors'
Report
for
the
year
ended
June
30,
2017
continued
Review
of
Operations
continued
o The
Company
has
now
initiated
in
vivo
proof
of
concept
studies
in
which
these
novel
capsids
will
be
used
to
deliver
the
BB-‐201
DNA
construct
that
expresses
an
shRNA
designed
to
silence
VEGF-‐a,
VEGF-‐b
and
PlGF
in
a
non-‐human
primate
model
in
which
AMD
has
been
induced
by
the
treatment
of
the
retina
with
a
laser.
(3) Hepatitis
B
–
BB-‐101
and
BB-‐103:
The
human
hepatitis
B
virus
is
a
small
DNA
virus
that,
according
to
the
WHO,
infects
up
to
240
million
people
worldwide,
resulting
in
up
to
780,000
deaths
per
year.
Infection
with
HBV
occurs
in
phases
ranging
from
a
silent,
acute
phase
that
can
be
resolved
by
the
immune
system
to
a
persistent
chronic
infection
requiring
life-‐long
therapy.
In
the
case
of
a
chronic
HBV
infection,
the
presence
of
viral
proteins,
particularly
the
s-‐antigen,
causes
hepatic
inflammation
leading
to
liver
dysfunction,
acute
hepatic
failure,
cirrhosis
or
hepatocellular
carcinoma.
According
to
GlobalData,
a
market
research
firm,
the
global
hepatitis
B
therapeutics
market
was
worth
$2.4
billion
in
2014,
and
is
expected
to
reach
a
total
of
$3.0
billion
by
2024
at
a
compound
annual
growth
rate
of
2.4%
(GlobalData,
2016).
The
current
therapies
used
as
standard
of
care
for
HBV
consist
of
antivirals
composed
of
nucleotide
and
nucleoside
analogues,
or
NUCs,
and,
less
commonly,
interferon
therapy.
The
Company
is
developing
BB-‐103
to
address
many
of
the
limitations
of
therapeutics
for
HBV
currently
on
the
market
and
those
in
development.
BB-‐103
is
designed
to
be
single
administration
ddRNAi-‐based
therapies
that
is
delivered
using
a
gene
therapy
vector
that
targets
the
liver
and
inhibits
viral
replication
and
s-‐antigen
production
on
a
long-‐term
basis.
The
Company
believes
that
combining
BB-‐103
with
a
nucleoside
inhibitor,
a
class
of
drugs
currently
used
to
treat
the
HBV
in
infected
individuals,
will
help
spur
the
patient’s
own
immune
system
to
produce
anti-‐s-‐antigen
antibodies
and
eliminate
their
daily
anti-‐viral
treatments
to
control
disease.
Key
milestones
achieved
over
the
last
12
months
and
next
steps
include:
o
In
December
2016,
the
Company
released
data
showing
that
single
administration
of
either
BB-‐101,
BB-‐102,
or
BB-‐103
demonstrated
a
robust
and
sustained
suppression
of
HBV
in
an
in
vivo
model
when
paired
with
current
standard
of
care
agents
used
to
treat
the
disease.
Having
this
magnitude
of
impact
on
the
viral
burden
in
this
model
of
HBV
infection
gives
the
Company
a
high
degree
of
confidence
to
further
progress
the
lead
candidate
towards
the
clinic.
In
February
2017,
at
the
APASL
conference
in
Shanghai,
the
Company
presented
the
totality
of
preclinical
data
demonstrating
that
ddRNAi
constructs,
in
combination
with
standard
of
care
therapies,
have
the
potential
to
become
a
new
treatment
paradigm
to
meet
the
significant
unmet
medical
need
in
this
indication.
In
April
2017,
the
Company
completed
a
pre-‐IND
submission
with
the
US
Food
and
Drug
Administration
(FDA)
in
which
the
feedback
provided
from
the
agency
defined
a
clear
and
expeditious
path
towards
the
clinic.
The
Company
has
been
working
closely
with
its
Key
Opinion
Leaders
and
clinicians
to
finalise
the
design
of
the
protocol
for
the
BB-‐103
human
study.
The
Company
is
seeking
partnerships
to
move
the
program
into
the
clinic.
o
o
o
o
Page
|
8
BENITEC
BIOPHARMA
LIMITED
Directors'
Report
for
the
year
ended
June
30,
2017
continued
Review
of
Operations
continued
In
addition
to
its
in-‐house
development
programs,
the
Company
has
licensed
its
ddRNAi
technology
to
companies
who
are
developing
therapeutic
programs
in
disease
areas
that
are
of
its
owns
pipeline
areas.
o
o
o
HIV/AIDS:
In
March
2012,
Benitec
granted
a
non-‐exclusive,
royalty-‐bearing,
worldwide
license
to
a
U.S.
based
biotechnology
company,
Calimmune,
Inc.
Under
the
agreement,
Calimmune
could
develop,
use
and
commercialise
ddRNAi
to
silence
up
to
three
targets
for
the
treatment
or
prevention
of
HIV/AIDS.
Calimmune's
approach
was
developed
with
core
technology
from
the
laboratory
of
Dr.
David
Baltimore,
a
Nobel
Laureate
in
the
area
of
HIV/AIDS,
and
involves
silencing
the
gene
that
codes
for
a
receptor
protein
known
as
CCR5.
Calimmune's
HIV/AIDS
treatment
is
known
as
Cal-‐1.
In
2013,
Calimmune
commenced
a
Phase
I/IIa
clinical
trial
of
Cal-‐
1.
The
goal
of
the
trial
is
to
assess
the
safety
of
the
therapy,
to
determine
the
ease
of
use
and
feasibility
of
the
approach
for
HIV/AIDS
patients
and
to
evaluate
what,
if
any,
side
effects
there
may
be.
The
study
is
ongoing
with
data
readouts
expected
in
2017.
Cancer
Immunotherapy:
In
August
2013,
an
exclusive,
royalty-‐bearing,
worldwide
license
was
granted
to
a
U.S.-‐based
biotechnology
company,
Regen
Biopharma
Inc.
to
use
ddRNAi
for
silencing
expression
of
indoleamine
2,3—dioxygenase,
or
IDO,
in
dendritic
cells.
Regen
is
developing
a
cancer
immunotherapy
using
the
licensed
technology.
IDO
is
associated
with
immune-‐suppression
and
is
overexpressed
in
some
cancers.
Regen
has
reported
preclinical
evidence
that
modification
of
these
cells
using
ddRNAi
targeting
the
silencing
of
IDO
may
significantly
enhance
their
efficacy
in
cancer
immunotherapy.
Regen's
first
treatment,
which
is
for
breast
cancer,
is
called
dCellVax.
Retinitis
Pigmentosa:
In
July
2012,
an
exclusive,
royalty-‐bearing,
worldwide
license
was
granted
to
Ireland-‐based
biotechnology
company,
Genable
Technologies
Limited
to
use,
develop
or
commercialise
RNAi
for
treatment
or
prevention
of
retinitis
pigmentosa.
Genable's
treatment
involves
suppression
of
the
mutant
and
normal
genes,
and
replacement
with
a
normal
RHO
gene
that
has
been
modified
to
be
resistant
to
ddRNAi
gene
silencing.
Genable
has
reported
that
it
established
proof
of
concept
in
an
in
vivo
model
of
the
disease.
Genable's
treatment
for
retinitis
pigmentosa,
GT308,
is
named
RhoNova.
RhoNova™
has
been
granted
Orphan
Drug
Designation
in
both
the
U.S.
and
Europe
in
addition
to
the
Advanced
Therapy
Medicinal
Product
designation
from
the
European
Medicines
Agency.
In
March
2016,
Spark
Therapeutics
acquired
Genable
Technologies
Limited
for
a
combination
of
cash
and
common
stock.
Spark
has
indicated
support
for
continuing
the
development
of
RhoNova™.
o Huntington’s
disease:
In
December
2012,
Benitec
granted
a
non-‐exclusive,
royalty-‐bearing,
worldwide
license
to
a
Netherlands-‐based
biotechnology
company,
uniQure
biopharma
B.V.
to
use,
develop
or
commercialise
RNAi
therapeutics
for
Huntington's
disease.
Intractable
Neuropathic
Pain:
In
November
2014,
an
exclusive,
royalty-‐bearing,
worldwide
license
was
granted
to
a
U.S.-‐based
biotechnology
company,
Circuit
Therapeutics,
Inc.
to
use
ddRNAi
for
the
development
of
treatments
for
and
the
prevention
of
pain.
o
Intellectual
property
Benitec
manages
a
substantial
portfolio
of
patents
relating
to
the
ddRNAi
platform
technology,
improvements
to
this
technology
and
its
pipeline
programs.
The
Company
continues
to
hold
a
dominant
position
in
the
field
of
expressed
RNAi
and
it
defends
its
position
in
this
space.
With
the
Page
|
9
BENITEC
BIOPHARMA
LIMITED
Directors'
Report
for
the
year
ended
June
30,
2017
continued
Review
of
Operations
continued
Intellectual
property
continued
limited
patent
term
remaining
on
the
platform
patents
licensed
from
CSIRO,
Benitec’s
focus
has
increasingly
been
on
establishing
patent
protection
for
its
pipeline
and
products
in
development
with
the
aim
of
securing
competitive
and
commercially
relevant
intellectual
property
position
for
each
of
its
programs.
Commercialisation
The
Company
evaluates
and,
when
appropriate,
enters
into
collaborations
to
expand
its
capabilities
and
product
offerings
into
a
range
of
diseases
and
potentially
to
more
broadly
accelerate
the
development
and
commercialisation
of
ddRNAi
therapeutics.
o
o
o
Therapeutic
product
partnering/out-‐licensing
to
pharmaceutical
partners:
o
The
Company
utilises
its
in-‐house
research
and
development
resources
to
discover,
evaluate
(in
preclinical
and
clinical
studies),
a
range
of
novel
ddRNAi
therapeutics.
The
Company
is
currently
focused
on
several
therapeutic
areas
–
oncology,
infectious
disease,
ocular
disease,
and
orphan
indications
associated
with
rare
genetic
mutations.
The
Company
may
seek
to
partner
these
therapeutic
programs
with
leading
pharmaceutical
partners
in
the
relevant
disease
areas
as
they
reach
key
pre-‐clinical
or
clinical
development
milestones.
R&D
collaborations
and
with
pharmaceutical
partners
and
specialised
biotechs;
The
Company
has
unique
expertise
in
developing
ddRNAi
therapeutics
utilising
a
range
of
viral
vectors,
including
novel
viral
vectors
for
ocular
disease,
as
well
as
evaluating
non-‐viral
delivery
platforms.
This
expertise,
combined
with
internal
capabilities
for
process
development
and
small
scale
manufacturing
is
a
powerful
drug
discovery/development
platform.
The
Company
is
therefore
ideally
placed
to
become
the
partner
of
choice
for
pharmaceutical
companies
looking
to
enter
the
field
of
non-‐viral
and
viral
vector-‐based
gene
therapy
and
gene
silencing
therapeutics
as
a
differentiated
approach
to
disease
targets.
Such
partnerships
may
include
de
novo
discovery
and
development
designed
to
silence
(and
replace
if
required)
the
partner’s
chosen
protein
target(s)
within
a
single
therapeutic
to
provide;
a)
more
effective
drug
targeting,
b)
“in-‐situ”
therapeutic
expression,
and
c)
potent
“single
administration”
multi-‐target
therapies.
Business
development
activities
based
on
proactive
engagement
with
biotechnology
and
pharmaceutical
companies
remains
a
major
focus
for
the
Company,
primarily
in
the
following
areas:
o
o
o
Partnering
pipeline
programs
by
co-‐development
or
licensing
to
other
biotechnology
and
pharmaceutical
companies;
Collaborating
with
biotechnology
and
pharmaceutical
companies
on
nominated
targets
using
Benitec’s
ddRNAi
technology;
and
Licensing
ddRNAi
to
commercial
users
of
the
technology.
The
Company
continues
to
generate
strong
interest
from
a
number
of
potential
partners
with
a
particular
focus
on
hepatitis
B,
AMD
and
the
ddRNAi
platform.
Page
|
10
BENITEC
BIOPHARMA
LIMITED
Directors'
Report
for
the
year
ended
June
30,
2017
continued
Significant
changes
in
the
state
of
affairs
During
the
year
the
Company
had
the
following
significant
changes
in
the
state
of
affairs:
Restructuring
of
Senior
Executive
team
Benitec
announced
a
restructure
of
its
executive
team
with
appointment
of
Mr
Greg
West
as
permanent
CEO.
Dr
Cliff
Holloway
as
Chief
Business
and
Operating
Officer,
and
Mr
Bryan
Dulhunty
as
Chief
Financial
Officer.
The
changes
signify
an
important
new
era
for
the
Company
and
strengthens
its
core
capabilities
with
their
combined
expertise
in
global
biotechnology
and
biopharmaceutical
sectors.
Benitec
remains
committed
to
its
articulated
strategy
to
develop
and
enhance
its
ddRNAi
technology
platform,
establish
co-‐development
and
collaboration
arrangements
for
non-‐pipeline
projects,
and
to
out-‐license
ddRNAi
to
companies
that
are
developing
therapeutic
programs
independently.
On
appointment
of
Mr
West
as
CEO,
Mr
West
was
granted
2.2million
options
vesting
over
3
years
and
expiring
in
5
years.
The
exercise
price
is
16.65
cents
per
option.
Appointment
and
resignation
of
Directors
and
Audit
and
Risk
Committee
Chair
Benitec
announced
the
appointment
of
Ms
Megan
Boston
as
Director
of
the
Company
and
Chair
of
the
Audit
and
Risk
Committee
on
the
16
of
August
2016.
Ms
Boston
has
significant
experience
in
finance,
audit,
risk
management,
compliance
and
corporate
governance
sectors
with
listed
entities
and
government
organisations
in
Australia.
Mr.
Iain
Ross
stepped
down
as
Chair
of
the
Audit
and
Risk
Committee
on
the
appointment
of
Ms
Boston.
Mr
Ross
resigned
as
a
director
on
September
30,
2016.
Benitec
announced
the
appointment
of
Dr
Jerel
Banks
as
a
director
of
the
Company
on
26
October
2016.
Dr
Banks
is
the
Chief
Investment
Officer
of
Nant
Capital,
LLC.
Prior
to
joining
Nant
Capital,
LLC,
Dr
Banks
served
as
vice
president,
portfolio
manager
and
research
analyst
for
the
Franklin
Biotechnology
Discovery
Fund
at
Franklin
Templeton
Investments
from
2012
to
2015.
Placement
of
Shares
On
October
24,
2016,
the
Company
entered
into
a
strategic
engagement
with
Nant
Capital,
LLC.
The
strategic
engagement
included
a
scientific
collaboration
in
clinical
programs
and
an
immediate
private
placement
to
Nant
Capital
LLC
of
29,305,819
ordinary
shares
in
the
Company,
representing
approximately
19.9%
of
its
then
outstanding
issued
capital
(for
a
post-‐issue
holding
of
approximately
16.7%).
The
shares
were
priced
at
$0.0895
per
share,
representing
the
7-‐day
volume
weighted
average
price
of
the
ordinary
shares
on
the
ASX
prior
to
the
execution
of
a
share
purchase
subscription
agreement.
On
March
13,
2017,
an
additional
29,305,819
fully
paid
ordinary
shares
were
issued
to
Nant
Capital
LLC
at
A$0.1859
per
share,
raising
A$5.45
million
for
the
Company.
As
a
result
of
this
placement
Nant
Capital
LLC
held
28.57%
of
the
issued
capital.
There
were
no
other
significant
changes
in
the
state
of
affairs
of
the
Group
during
the
financial
year.
Page
|
11
BENITEC
BIOPHARMA
LIMITED
Directors'
Report
for
the
year
ended
June
30,
2017
continued
Matters
subsequent
to
the
end
of
the
financial
year
No
matter
or
circumstance
has
arisen
since
30
June
2017
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
The
Group
will
continue
to
progress
programs
through
the
clinic,
seek
commercialisation
opportunities
with
big
Pharma
and
others
for
its
unique
IP,
develop
its
therapeutic
pipeline
and
pre-‐
clinical
programs,
protect
and
build
the
Group’s
IP
estate
and
secure
adequate
funding.
Refer
to
OFR
for
further
commentary.
Environmental
regulation
The
Group
is
not
subject
to
any
significant
environmental
regulation
under
Australian
Commonwealth
or
State
law.
Information
on
directors
Name:
Title:
Qualifications:
Experience
and
expertise:
Mr
Peter
Francis
Non-‐Executive
Chairman
LLB,
Grad
Dip
(Intellectual
Property)
Peter
is
a
partner
at
Francis
Abourizk
Lightowlers
(‘FAL’),
a
firm
of
commercial
and
technology
lawyers
with
offices
in
Melbourne.
He
is
a
legal
specialist
in
the
areas
of
intellectual
property
and
licensing
and
provides
legal
advice
to
a
large
number
of
corporations
and
research
bodies.
Optiscan
Imaging
Limited,
Rision
Ltd
and
Neuroscope
Ltd
(public
non
listed)
Former
directorships
(last
3
years):
None
Special
responsibilities:
Interests
in
shares:
Interests
in
options:
Member
of
the
Remuneration
and
Nomination
424,174
ordinary
shares
1,400,000
options
over
ordinary
shares
Other
current
directorships:
Name:
Title:
Qualifications:
Experience
and
expertise:
Dr
Jerel
Banks
Non-‐Executive
Director
Dr.
Banks
earned
an
M.D.
from
the
Brown
University
School
of
Medicine
and
a
Ph.D.
in
Organic
Chemistry
from
Brown
University,
and
he
holds
an
A.B.
in
Chemistry
from
Princeton
University.
Dr.
Banks
is
the
Chief
Investment
Officer
of
Nant
Capital,
LLC.
Prior
to
joining
Nant
Capital,
LLC,
Dr.
Banks
served
as
vice
president,
portfolio
manager
and
the
Franklin
Biotechnology
Discovery
Fund
at
Franklin
Templeton
Investments
from
2012
to
2015.
GlobeImmune,
Inc
research
analyst
for
Other
current
directorships:
Former
directorships
(last
3
years):
Nil
Page
|
12
BENITEC
BIOPHARMA
LIMITED
Directors'
Report
for
the
year
ended
June
30,
2017
continued
Information
on
directors
continued
Dr
Jerel
Banks
continued
Nil
Nil
Nil
Name:
Special
responsibilities:
Interests
in
shares:
Interests
in
options:
Name:
Title:
Qualifications:
Experience
and
expertise:
Ms
Megan
Boston
(appointed
16
August
2016)
Non-‐Executive
Director
B.Comm,
CA,
GAICD,
Grad
Diploma
Share
Trading
Ms
Megan
Boston
is
formerly
the
Managing
Director
of
a
listed
technology
company
specialising
in
shareholder
communications,
investor
relations
and
voting.
Megan
holds
a
Bachelor
of
Commerce
and
is
a
Chartered
Accountant
with
over
10
years’
experience
as
a
non-‐executive
Director
across
a
range
of
industries.
She
has
chaired
company
boards
as
well
as
board
sub-‐committees
particularly
in
the
area
of
finance
and
risk
management.
Megan
has
completed
the
Company
Directors
Course
Diploma
run
by
the
Australian
Institute
of
Company
Directors.
Previously,
Megan
held
senior
executive
roles
at
various
banking
institutions
in
the
area
of
risk
and
compliance,
as
well
as
working
for
PricewaterhouseCoopers.
None
listed)
Chair
of
the
Audit
and
Risk
Committee.
Nil
Nil
Mr
Kevin
Buchi
Non-‐Executive
Director
BA
(Chemistry),
MBA,
CPA
Kevin
most
recently
servefnas
the
CEO
of
TetraLogic
Pharmaceuticals
Corporation,
a
public
U.S.
Biotechnology
company.
Prior
to
that,
Kevin
served
as
Chief
Executive
Officer
(‘CEO’)
of
Cephalon,
Inc.
through
its
$6.8
billion
acquisition
by
Teva
Pharmaceutical
Industries
(‘Teva’)
in
October
2011.
After
the
acquisition,
he
served
as
Corporate
Vice
President,
Global
Branded
Products
of
Teva.
Kevin
joined
Cephalon,
Inc.
in
1991
and
held
various
positions,
including
Chief
Operating
Officer,
Chief
Financial
Officer
and
Head
of
Business
Development
prior
to
being
appointed
CEO.
Impax
Labs
Other
current
directorships:
Former
directorships
(last
3
years):
Omni
Market
Tide
Limited
(ASX)
and
Neuroscope
Ltd
(public
non
Special
responsibilities:
Interests
in
shares:
Interests
in
options:
Name:
Title:
Qualifications:
Experience
and
expertise:
Other
current
directorships:
Former
directorships
(last
3
years):
TetraLogic
Paharmaceuticals,Stemline
Therapeutics,
Inc.,
Forward
Epirus
Pharmaceuticals,
and
Inc.
Special
responsibilities:
Interests
in
shares:
Interests
in
options:
Pharma
A/S,
Alexza
Biopharmaceuticals,
Inc.
Member
of
the
Audit
and
Risk
Committee
861,539
ordinary
shares
1,240,000
options
over
ordinary
shares
Page
|
13
BENITEC
BIOPHARMA
LIMITED
Directors'
Report
for
the
year
ended
June
30,
2017
continued
Information
on
directors
continued
Name:
Title:
Qualifications:
Experience
and
expertise:
Dr
John
Chiplin
Non-‐Executive
Director
BPharm,
MRPharmsS,
Ph.D
(Pharmacy)
from
the
University
of
Nottingham,
Nottingham,
United
Kingdom.
John
is
a
founder
of
and
has
served
as
a
Managing
Director
of
investment
company,
Newstar
Ventures
Ltd.,
since
1998.
More
recently,
he
has
served
as
a
director
of
Medistem,
Inc.
through
its
acquisition
by
Intrexon
Corporation
in
2014,
as
founding
Chief
Executive
Officer
of
Arana
Therapeutics
Limited
from
2006
through
its
acquisition
by
Cephalon,
Inc.
in
2009,
as
director
of
Domantis
Ltd
through
its
acquisition
by
GlaxoSmithKline
plc
in
2006,
and
as
Managing
Director
of
ITI
Life
Sciences
Fund
from
2003
to
2005.
He
currently
serves
on
the
board
of
directors
of
Adalta
Pty
Ltd(1AD.AX),
Batu
Biologics
Inc.,
Cynata
Therapeutics
Limited
(CYP.AX),
Prophecy
Inc.,
ScienceMedia
Inc.,
Scancell
Holdings
plc
(SCLP.L,
Executive
Chairman),
Sienna
Cancer
Diagnostics
(SDX.AX)
and
The
Coma
Research
Institute.
As
above
Other
current
directorships:
Former
directorships
(last
3
years):
Medistem,
Inc.
(MEDS.US)
Special
responsibilities:
Interests
in
shares:
Interests
in
options:
Chair
of
the
Remuneration
and
Nomination
Committee
200,000
ordinary
shares
840,000
options
over
ordinary
shares
Name:
Title:
Qualifications:
Experience
and
expertise:
Mr
Iain
Ross
(Resigned
30
September
2016)
Non-‐Executive
Director
B.Sc
(Hons),
C.Dir
Iain
has
over
30
years’
experience
in
the
international
life
sciences
sector.
Following
a
career
with
multi-‐national
companies
including
Sandoz,
Fisons
plc
and
Hoffman
La
Roche,
Anatara
Lifesciences
Limited
(ASX);
Novogen
Limted
(ASX);
Premier
Veterinary
Group
plc
(LSE),
and
e-‐Therapeutics
plc
(LSE)
Other
current
directorships
up
to
date
of
resignation:
Former
directorships
(last
3
years):
Ark
Therapeutics
Group
plc;
Amarantus
Biosciences;
Coms
plc
and
Special
responsibilities:
Interests
in
shares:
Interests
in
options:
Tissue
Therapies
Limited
Chair
of
the
Audit
and
Risk
Committee
and
member
of
the
Remuneration
and
Nomination
Committee
(stepped
from
being
Chairman
on
16
August
2016
but
remains
on
the
Committee)
66,364
ordinary
shares
1,240,000
options
over
ordinary
shares
(lapsed
on
retirement)
Other
current
directorships
quoted
above
are
current
directorships
for
listed
entities
only
and
excludes
directorships
of
all
other
types
of
entities,
unless
otherwise
stated.
Former
directorships
(last
3
years)
quoted
above
are
directorships
held
in
the
last
3
years
for
listed
entities
only
and
excludes
directorships
of
all
other
types
of
entities,
unless
otherwise
stated.
Page
|
14
BENITEC
BIOPHARMA
LIMITED
Directors'
Report
for
the
year
ended
June
30,
2017
continued
CEO
and
Company
secretary
Mr
Greg
West
was
appointed
CEO
on
the
10th
August
2016
having
filled
the
interim
CEO
position
since
December
2015.
Greg
has
spent
the
last
10
years
in
CFO
roles
in
the
listed
biotech
sector.
Greg
is
a
Chartered
Accountant
with
experience
in
investment
banking,
financial
services
and
ASX-‐listed
start-‐ups
in
the
biotech
sector.
Previously,
he
has
worked
at
Price
Waterhouse
and
has
held
senior
finance
executive
roles
in
investment
banking
with
Bankers
Trust,
Deutsche
Bank,
NZI
and
other
financial
institutions.
Meetings
of
directors
The
number
of
meetings
of
the
Company's
Board
of
Directors
('the
Board')
and
of
each
Board
committee
held
during
the
year
ended
30
June
2017,
and
the
number
of
meetings
attended
by
each
director
were:
Full
Board
Attended
10
7
10
10
11
Full
Board
Held
11
7
10
11
11
Audit
and
Risk
Committee
Attended
3
n/a
4
3
n/a
Held
3
n/a
4
4
n/a
Remuneration
and
Nominations
Committee
Attended
2
n/a
n/a
n/a
2
Held
2
n/a
n/a
n/a
2
Peter
Francis
Jerel
Banks
Megan
Boston
Kevin
Buchi
John
Chiplin
Held:
represents
the
number
of
meetings
held
during
the
time
the
director
held
office
or
was
a
member
of
the
relevant
committee.
Remuneration
report
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
remuneration
report
is
set
out
under
the
following
main
headings:
●
Principles
used
to
determine
the
nature
and
amount
of
remuneration
●
Details
of
remuneration
●
Service
agreements
●
Share-‐based
compensation
●
Consequences
of
performance
on
shareholder
wealth
●
Additional
disclosures
relating
to
key
management
personnel
Principles
used
to
determine
the
nature
and
amount
of
remuneration
The
objective
of
the
Group's
executive
reward
framework
is
to
ensure
reward
for
performance
is
competitive
and
appropriate
for
the
results
delivered.
The
framework
aligns
executive
reward
with
the
achievement
of
strategic
objectives
and
the
creation
of
value
for
shareholders,
and
conforms
to
the
market
best
practice
for
the
delivery
of
reward.
The
Board
of
Directors
('the
Board')
ensures
that
executive
reward
satisfies
the
following
key
criteria
for
good
reward
governance
practices:
Page
|
15
BENITEC
BIOPHARMA
LIMITED
Directors'
Report
for
the
year
ended
June
30,
2017
continued
Remuneration
report
continued
●
competitiveness
and
reasonableness;
●
acceptability
to
shareholders;
●
performance
linkage
/
alignment
of
executive
compensation;
and
●
transparency.
The
Nomination
and
Remuneration
Committee
is
responsible
for
determining
and
reviewing
remuneration
arrangements
for
its
directors
and
executives.
The
performance
of
the
Group
depends
on
the
quality
of
its
directors
and
executives.
The
remuneration
philosophy
is
to
attract,
motivate
and
retain
high
performance
and
high
quality
personnel.
This
committee
is
currently
managed
by
the
Full
Board.
The
Nomination
and
Remuneration
Committee
has
structured
an
executive
remuneration
framework
that
is
market
competitive
and
complementary
to
the
reward
strategy
of
the
Group.
Alignment
to
shareholders'
interests:
●
has
economic
profit
as
a
core
component
of
plan
design;
●
focuses
on
sustained
growth
in
shareholder
wealth,
consisting
of
dividends
and
growth
in
share
price,
and
delivering
constant
or
increasing
return
on
assets
as
well
as
focusing
the
executive
on
key
non-‐financial
drivers
of
value;
and
●
attracts
and
retains
high
calibre
executives.
Alignment
to
program
participants'
interests:
●
rewards
capability
and
experience;
●
reflects
competitive
reward
for
contribution
to
growth
in
shareholder
wealth;
and
●
provides
a
clear
structure
for
earning
rewards.
In
accordance
with
best
practice
corporate
governance,
the
structure
of
non-‐executive
directors
and
executive
remunerations
are
separate.
Non-‐executive
directors
remuneration
Fees
and
payments
to
non-‐executive
directors
reflect
the
demands
and
responsibilities
of
their
role.
Non-‐executive
directors'
fees
and
payments
are
reviewed
annually
by
the
Nomination
and
Remuneration
Committee.
The
Nomination
and
Remuneration
Committee
may,
from
time
to
time,
receive
advice
from
independent
remuneration
consultants
to
ensure
non-‐executive
directors'
fees
and
payments
are
appropriate
and
in
line
with
the
market.
The
chairman's
fees
are
determined
independently
to
the
fees
of
other
non-‐executive
directors
based
on
comparative
roles
in
the
external
market.
The
chairman
is
not
present
at
any
discussions
relating
to
the
determination
of
his
own
remuneration.
Non-‐executive
directors
may
receive
share
options
or
other
incentives.
ASX
listing
rules
require
the
aggregate
non-‐executive
directors
remuneration
be
determined
periodically
by
a
general
meeting.
The
most
recent
determination
was
at
the
Annual
General
Meeting
held
on
13
November
2014,
where
the
shareholders
approved
a
maximum
aggregate
remuneration
of
$500,000.
Page
|
16
BENITEC
BIOPHARMA
LIMITED
Directors'
Report
for
the
year
ended
June
30,
2017
continued
Remuneration
report
continued
Executive
remuneration
The
Group
aims
to
reward
executives
with
a
level
and
mix
of
remuneration
based
on
their
position
and
responsibility,
which
has
both
fixed
and
variable
components.
Executives
typically
receive
a
base
salary
(which
is
based
on
factors
such
as
experience
and
comparable
industry
information),
options,
and
performance
incentives.
The
Board
reviews
the
CEO’s
remuneration
package,
and
the
CEO
reviews
the
other
senior
executives’
remuneration
packages,
annually
by
reference
to
the
Group’s
performance,
executive
performance,
and
comparable
information
within
the
industry.
The
performance
of
executives
is
measured
against
criteria
agreed
annually
with
each
executive
and
is
based
predominantly
on
the
overall
success
of
the
Group
in
achieving
its
broader
corporate
goals.
Bonuses
and
incentives
are
linked
to
predetermined
performance
criteria.
The
Board
may,
however,
exercise
its
discretion
in
relation
to
approving
incentives,
bonuses,
and
options,
and
can
recommend
changes
to
the
CEO’s
recommendations.
The
policy
is
designed
to
attract
the
highest
calibre
of
executives
and
reward
them
for
performance
that
results
in
long-‐term
growth
in
shareholder
wealth.
The
executive
remuneration
and
reward
framework
has
four
components:
●
base
pay
and
non-‐monetary
benefits;
●
short-‐term
performance
incentives;
●
share-‐based
payments;
and
●
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
and
non-‐monetary
benefits,
are
reviewed
annually
by
the
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
fringe
benefits
(for
example
motor
vehicle
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
targets
of
those
executives
responsible
for
meeting
those
targets.
STI
payments
are
granted
to
executives
based
on
specific
annual
targets
and
key
performance
indicators
('KPI's')
being
achieved.
KPI's
include
profit
contribution,
leadership
contribution
and
product
management.
The
long-‐term
incentives
('LTI')
include
long
service
leave
and
share-‐based
payments.
Executives
may
be
invited
to
participate
in
the
Employee
Share
Option
Plan
('ESOP').
Shares
are
awarded
to
executives
over
a
period
of
three
years
based
on
long-‐term
incentive
measures.
These
include
increase
in
shareholders'
value
relative
to
the
entire
market
and
the
increase
compared
to
the
Group's
direct
competitors.
Australian
executives
or
directors
receive
a
superannuation
guarantee
contribution
required
by
the
Government
and
do
not
receive
any
other
retirement
benefits.
Page
|
17
BENITEC
BIOPHARMA
LIMITED
Directors'
Report
for
the
year
ended
June
30,
2017
continued
Remuneration
report
continued
Group
performance
and
link
to
remuneration
Executive
bonus
and
incentive
payments
are
based
on
performance
and
are
at
the
discretion
of
the
Nomination
and
Remuneration
Committee.
Use
of
remuneration
consultants
During
the
financial
year
ended
30
June
2017,
the
Group
did
not
engage
any
remuneration
consultants,
to
review
its
existing
remuneration
policies
and
provide
any
recommendations
on
how
to
improve
both
the
STI
and
LTI
programs.
Details
of
remuneration
Amounts
of
remuneration
Details
of
the
remuneration
of
key
management
personnel
(KMP)
of
the
Group
are
set
out
in
the
following
tables.
The
key
management
personnel
of
the
Group
consisted
of
the
directors
of
Benitec
Biopharma
Limited
and
the
following
persons:
●
Mr
Greg
West
–
Chief
Executive
Officer
(appointed
CEO
10
August
2016)
and
Company
Secretary
●
Dr
David
Suhy
–
Chief
Scientific
Officer
●
Dr
Cliff
Holloway
–
Chief
Business
Officer
(appointed
24
August
2016)
Short-‐term
benefits
Post-‐
employ
ment
benefits
Long-‐term
benefits
Cash
salary
and
fees
$
Cash
bonus
$
Non-‐
monetary
$
Super
annuation
$
Employee
leave
$
Share-‐
based
payments
Options
$
113,328
52,130
68,160
76,650
84,863
51,873
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
11,400
-‐
6,475
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
92,265
-‐
-‐
57,159
57,159
40,101
Total
$
219,993
52,130
74,635
133,809
142,022
91,974
2017
Directors:
Peter
Francis
Jerel
Banks
Megan
Boston
Kevin
Buchi
John
Chiplin
Iain
Ross*
Other
Key
Management
Personnel:
Greg
West
David
Suhy
Cliff
Holloway
-‐
-‐
-‐
-‐
*Mr
Iain
Ross
retired
September
30,
2016
400,000
352,789
283,077
1,482,870
(9,231)
(12,019)
(3,846)
(25,096)
19,616
19,516
19,616
76,623
19,328
-‐
-‐
19,328
142,527
26,775
-‐
572,240
387,061
298,847
418,986
1,972,711
Page
|
18
BENITEC
BIOPHARMA
LIMITED
Directors'
Report
for
the
year
ended
June
30,
2017
continued
Remuneration
report
continued
Short-‐term
benefits
Post-‐
employ
ment
benefits
Cash
salary
and
fees
$
Cash
bonus
$
Non-‐
monetary
$
Super
annuation
$
Long-‐term
benefits
Share-‐
based
payments
Options
$
Employee
leave
$
Total
$
113,328
78,488
81,230
81,262
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
8,550
-‐
-‐
-‐
503,379
120,000
(90,256)
9,024
-‐
-‐
-‐
-‐
-‐
212,993
127,796
127,796
127,796
334,871
206,284
209,026
209,058
172,237
714,384
333,333
343,218
263,583
1,797,821
69,000
68,644
27,500
285,144
25,268
42,242
(11,676)
(34,422)
19,308
-‐
18,748
55,630
13,209
-‐
-‐
575,876
115,758
572,704
118,600
307,030
8,875
13,209
1,011,851
3,129,233
2016
Non-‐Executive
Directors:
Peter
Francis
Kevin
Buchi
John
Chiplin
Iain
Ross
Executive
Directors:
Peter
French
Other
Key
Management
Personnel:
Greg
West
David
Suhy
Carl
Stubbings
The
proportion
of
remuneration
at
risk
and
the
fixed
proportion
are
as
follows:
Name
Non-‐Executive
Directors:
Peter
Francis
Kevin
Buchi
John
Chiplin
Iain
Ross
Executive
Directors:
Peter
French
Other
Key
Management
Personnel:
Greg
West
David
Suhy
Cliff
Holloway
Carl
Stubbings
Fixed
remuneration
2017
2016
At
risk
-‐
STI
(bonus)
2017
2016
At
risk
-‐
LTI
(options)
2017
2016
57%
57%
60%
56%
-‐
72%
93%
100%
-‐
36%
38%
39%
39%
59%
66%
67%
-‐%
88%
-‐%
-‐%
-‐%
-‐%
-‐
-‐%
-‐%
-‐%
-‐%
-‐%
-‐%
-‐%
-‐%
43%
43%
40%
44%
64%
62%
61%
61%
17%
-‐
24%
12%
12%
-‐%
9%
28%
7%
-‐
-‐%
22%
21%
-‐%
3%
The
proportion
of
the
cash
bonus
paid/payable
or
forfeited
is
as
follows.
No
part
of
the
forfeited
bonus
is
payable
in
future
years.
Page
|
19
BENITEC
BIOPHARMA
LIMITED
Directors'
Report
for
the
year
ended
June
30,
2017
continued
Remuneration
report
continued
Cash
bonus
paid/payable
Cash
bonus
forfeited
Name
Executive
Directors:
Peter
French
Other
Key
Management
Personnel:
Greg
West
David
Suhy
Carl
Stubbings
2017
-‐
-‐
-‐
-‐
2016
100%
100%
100%
50%
2017
2016
-‐
-‐
-‐
-‐
-‐
-‐
-‐
50%
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:
Title:
Agreement
commenced:
Details:
Name:
Title:
Agreement
commenced:
Details:
Name:
Title:
Agreement
commenced:
Details:
Mr
Greg
West
CEO
and
Company
Secretary
10
August
2016
(previously
CFO
and
Company
Secretary
from
23
August
2011)
CEO
role
–
Mr
West
was
appointed
CEO
on
the
10th
August
2016
with
a
base
salary
of
$400,000
plus
superannuation
of
$19,616.
Each
year
Mr
West
can
receive
up
to
a
50%
bonus
on
his
base
salary,
to
be
reviewed
annually
by
the
Nomination
and
Remuneration
Committee.
Greg’s
appointment
with
the
Company
may
be
terminated
with
the
Company
giving
six
months’
notice
or
by
Greg
giving
six
months’
notice.
The
Company
may
elect
to
pay
Greg
an
equal
amount
to
that
proportion
of
his
salary
equivalent
to
six
month’s
pay
in
lieu
of
notice,
together
with
any
outstanding
entitlements
due
to
him.
Mr
West
was
appointed
interim
CEO
in
October
2015
as
well
as
maintaining
his
role
Company
Secretary
which
he
had
held
since
23
August
2011.
Dr
David
Suhy
Chief
Scientific
Officer
28
August
2012
Base
salary
for
the
year
ended
30
June
2017
of
$USD271,153
plus
superannuation,
to
be
reviewed
annually
by
the
Nomination
and
Remuneration
Committee.
David’s
appointment
with
the
Company
may
be
terminated
without
notice.
Dr
Cliff
Holloway
Chief
Business
and
Operating
Officer
24
August
2016
Base
salary
for
the
year
ended
30
June
2017
of
$300,000
plus
superannuation,
to
be
reviewed
annually
by
the
Nomination
and
Remuneration
Committee.
Cliff’s
appointment
with
the
Company
may
be
terminated
with
six
months’
notice.
Page
|
20
BENITEC
BIOPHARMA
LIMITED
Directors'
Report
for
the
year
ended
June
30,
2017
continued
Remuneration
report
continued
Share-‐based
compensation
Issue
of
shares
There
were
no
shares
issued
to
directors
and
other
key
management
personnel
as
part
of
compensation
during
the
year
ended
30
June
2017.
Options
Details
of
options
over
ordinary
shares
granted,
vested
and
lapsed
for
directors
and
other
key
management
personnel
as
part
of
compensation
during
the
year
ended
30
June
2017
are
set
out
below:
Number
of
options
granted
Grant
date
Value
per
options
at
grant
date
Value
of
options
at
grant
date
Number
vested/
(forfeited)
Exercise
price
Vested
and
first
exercise
date
Last
exercise
date
2,200,000
10/08/2016
$0.0962
$211,640
-‐
$0.1665
10/08/2017
9/8/2021
Name
Greg
West
Options
granted
carry
no
dividend
or
voting
rights.
Options
vest
over
five
years
with
vesting
based
on
remaining
in
service.
There
are
is
no
other
performance
criteria.
Subsequent
to
year
end
KMP’s
were
issued
with
additional
options
under
the
Company’s
Employee
Share
Option
Plan
Granted
to
Greg
West
David
Suhy
Cliff
Holloway
Grant
date
17/07/2017
17/07/2017
17/07/2017
No.
granted
2,000,000
1,500,000
800,000
Expiry
date
16/07/2022
16/07/2022
16/07/2022
Exercise
price
$0.196
$0.196
$0.196
Consequences
of
performance
on
shareholder
wealth
The
earnings
of
the
Group
for
the
five
years
to
30
June
2016
are
summarised
below:
Loss
after
income
tax
2013
$'000
(3,488)
2014
$'000
(7,039)
2015
$'000
(11,509)
2016
$'000
(24,778)
2017
$'000
(5,690)
The
factors
that
are
considered
to
affect
total
shareholders
return
('TSR')
are
summarised
below:
Share
price
at
financial
year
end
($)
Basic
earnings
per
share
(cents
per
share)
2013
0.38
2014
1.15
2015
0.69
2016
0.097
2017
0.125
(8.25)
(7.78)
(9.96)
(17.41)
(3.24)
Page
|
21
BENITEC
BIOPHARMA
LIMITED
Directors'
Report
for
the
year
ended
June
30,
2017
continued
Remuneration
report
continued
Additional
disclosures
relating
to
key
management
personnel
In
accordance
with
Class
Order
14/632,
issued
by
the
Australian
Securities
and
Investments
Commission,
relating
to
'Key
management
personnel
equity
instrument
disclosures',
the
following
disclosure
relates
only
to
equity
instruments
in
the
Company
or
its
subsidiaries.
Shareholding
The
number
of
shares
in
the
Company
held
during
the
financial
year
by
each
director
and
other
members
of
key
management
personnel
of
the
Group,
including
their
personally
related
parties,
is
set
out
below:
Ordinary
Shares
Balance
at
1
July
2016
Received
as
part
of
remuneration
Exercise
of
options
Disposals/
other*
Balance
at
30
June
2017
Peter
Francis
Kevin
Buchi
John
Chiplin
Iain
Ross*
-‐
-‐
-‐
-‐
-‐
*
Iain
Ross
resigned
as
a
director
on
30
September
2016.
424,174
861,539
200,000
66,364
1,552,077
-
-
-
-
-‐
-
-
-
(66,364)
(66,364)
424,174
861,539
200,000
-‐
1,485,713
Option
holding
The
number
of
options
over
ordinary
shares
in
the
Company
held
during
the
financial
year
by
each
director
and
other
members
of
key
management
personnel
of
the
Group,
including
their
personally
related
parties,
is
set
out
below:
Options
over
ordinary
shares
Peter
Francis
Kevin
Buchi
John
Chiplin
Greg
West
David
Suhy
Iain
Ross*
Granted
Balance
at
1
July
2016
3,000,000
1,240,000
1,240,000
1,000,000
2,200,000
1,200,000
1,240,000
-‐
-‐
Expired/
forfeited/
other
Balance
at
30
June
2017
Vested
and
exercisable
Vested
and
not
exercisable
Exercised
-‐
-‐
-‐
-‐
-‐
-‐
-‐
(1,600,000)
-‐
(400,000)
(120,000)
-‐
(1,240,000)
(3,360,000)
1,400,000
933,334
1,240,000
960,000
840,000
560,000
880,000
3,080,000
1,200,000
1,200,000
-‐
7,760,000
4,533,334
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
8,920,000
2,200,000
*
Iain
Ross
resigned
as
a
director
on
30
September
2016.
Other
transactions
with
key
management
personnel
and
their
related
parties
Legal
services
at
normal
commercial
rates
totalling
$191,050
(2016:
$116,540)
were
provided
by
Francis
Abourizk
Lightowlers,
a
law
firm
in
which
Peter
Francis
is
a
partner
and
has
a
beneficial
interest.
Consultancy
fees
were
paid
for
executive
duties
totalling
$32,133
(2016:
$165,983)
provided
by
NewStar
Ventures
Ltd,
a
corporation
in
which
John
Chiplin
is
a
director
and
has
a
beneficial
interest.
This
concludes
the
remuneration
report,
which
has
been
audited.
Page
|
22
BENITEC
BIOPHARMA
LIMITED
Directors'
Report
for
the
year
ended
June
30,
2017
continued
Shares
under
option
Unissued
ordinary
shares
of
the
Company
under
option
at
the
date
of
this
report
are
as
follows:
Grant
date
Expiry
date
16
November
2012
**
10
November
2013
*
22
August
2013
**
28
February
2014
***
15
May
2014
**
17
December
2014
**
6
May
2015
**
20
August
2015
****
12
November
2015*
9
August
2016**
17
August
2017**
16
November
2017
18
May
2018
22
August
2018
28
February
2019
15
May
2019
17
December
2019
6
May
2020
21
August
2020
12
November
2020
9
August
2021
16
August
2022
Exercise
price
Number
under
option
$1.250
$0.620
$1.250
$1.260
$1.500
$1.250
$1.250
$USD
0.275
$0.77
$0.1665
$0.196
400,000
400,000
480,000
13,246,203
180,000
2,334,000
650,000
11,498,000
3,080,000
2,200,000
9,450,000
43,918,203
Unlisted
options
Non-‐Executive
Directors
options
*
**
ESOP
options
***
**** Warrants.
These
options
represent
574,900
unlisted
warrants.
Each
warrant
represents
is
convertible
into
20
shares.
The
exercise
price
of
each
warrant
is
convertible
on
the
payment
of
$USD5.50
($USD
0.275
per
share).
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
During
the
year
100
warrants
were
exercised.
This
is
equivalent
to
2,000
options
converting
into
2,000
ordinary
shares.
There
were
no
amounts
unpaid
on
the
shares
issued.
Indemnity
and
insurance
of
officers
The
Company
has
indemnified
the
directors
and
executives
of
the
Company
for
costs
incurred,
in
their
capacity
as
a
director
or
executive,
for
which
they
may
be
held
personally
liable,
except
where
there
is
a
lack
of
good
faith.
During
the
financial
year,
the
Company
paid
a
premium
in
respect
of
a
contract
to
insure
the
directors
and
executives
of
the
Company
against
a
liability
to
the
extent
permitted
by
the
Corporations
Act
2001.
The
contract
of
insurance
prohibits
disclosure
of
the
nature
of
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
year,
indemnified
or
agreed
to
indemnify
the
auditor
of
the
Company
or
any
related
entity
against
a
liability
incurred
by
the
auditor.
Page
|
23
BENITEC
BIOPHARMA
LIMITED
Directors'
Report
for
the
year
ended
June
30,
2017
continued
Indemnity
and
insurance
of
auditor
continued
During
the
financial
year,
the
Company
has
not
paid
a
premium
in
respect
of
a
contract
to
insure
the
auditor
of
the
Company
or
any
related
entity.
Proceedings
on
behalf
of
the
Company
No
person
has
applied
to
the
Court
under
section
237
of
the
Corporations
Act
2001
for
leave
to
bring
proceedings
on
behalf
of
the
Company,
or
to
intervene
in
any
proceedings
to
which
the
Company
is
a
party
for
the
purpose
of
taking
responsibility
on
behalf
of
the
Company
for
all
or
part
of
those
proceedings.
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
20
to
the
financial
statements.
The
directors
are
satisfied
that
the
provision
of
non-‐audit
services
during
the
financial
year,
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
20
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;
●
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;
and
• all
services
have
been
pre-‐approved
by
the
audit
committee.
Officers
of
the
Company
who
are
former
partners
of
Grant
Thornton
Audit
Pty
Ltd
There
are
no
officers
of
the
Company
who
are
former
partners
of
Grant
Thornton
Audit
Pty
Ltd.
Rounding
of
amounts
The
Parent
entity
has
applied
the
relief
available
to
it
under
ASIC
Corporations
(Rounding
in
Financial/Directors’
Reports).
Instrument
2016/191
and
accordingly
amounts
in
the
financial
statements
and
Directors’
Report
have
been
rounded
off
to
the
nearest
$1,000,
or
in
certain
cases,
to
the
nearest
dollars.
Auditor's
independence
declaration
A
copy
of
the
auditor's
independence
declaration
as
required
under
section
307C
of
the
Corporations
Act
2001
is
set
out
on
the
following
page.
Page
|
24
BENITEC
BIOPHARMA
LIMITED
Directors'
Report
for
the
year
ended
June
30,
2017
continued
Auditor
Grant
Thornton
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
________________________
Peter
Francis
Chairman
29
August
2017
Sydney
Page
|
25
BENITEC
BIOPHARMA
LIMITED
Corporate
Governance
The
Company’s
directors
and
management
are
committed
to
conducting
the
Group’s
business
in
an
ethical
manner
and
in
accordance
with
the
highest
standards
of
corporate
governance.
The
Company
has
adopted
and
substantially
complies
with
the
ASX
Corporate
Governance
Principles
and
Recommendations
(3rd
Edition)
(‘Recommendations’)
to
the
extent
appropriate
to
the
size
and
nature
of
the
Group’s
operations.
The
Company
has
prepared
a
Corporate
Governance
Statement
which
sets
out
the
corporate
governance
practices
that
were
in
operation
throughout
the
financial
year
for
the
Company,
identifies
any
Recommendations
that
have
not
been
followed,
and
provides
reasons
for
not
following
such
Recommendations.
The
Company’s
Corporate
Governance
Statement
and
policies,
which
were
approved
by
the
Board
of
directors
on
24
August
2017
can
be
found
on
its
website:
http://www.benitec.com/investor-‐centre/governance
Page
|
26
Level 17, 383 Kent Street
Sydney NSW 2000
Correspondence to:
Locked Bag Q800
QVB Post Office
Sydney NSW 1230
T +61 2 8297 2400
F +61 2 9299 4445
E info.nsw@au.gt.com
W www.grantthornton.com.au
Auditor’s Independence Declaration
To the Directors of Benitec Biopharma Limited
In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor
for the audit of Benitec Biopharma Limited for the year ended 30 June 2017, I declare that, to the
best of my knowledge and belief, there have been:
a
no contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
b
no contraventions of any applicable code of professional conduct in relation to the audit.
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
L M Worsley
Partner - Audit & Assurance
Sydney, 29 August 2017
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the
context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm
is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and
are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its
Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation.
Page | 27
BENITEC
BIOPHARMA
LIMITED
Statement
of
profit
or
loss
and
other
comprehensive
income
For
the
year
ended
30
June
2017
Revenue
Other
income
Total
Income
Expenses
Royalties
and
licence
fees
Research
and
development
Employee
benefits
expense
Share-‐based
expense
Travel
related
costs
Consultants
costs
Occupancy
costs
Depreciation
Corporate
expenses
Foreign
exchange
realized
loss
Foreign
exchange
unrealized
loss
IPO
costs
Loss
on
disposal
of
fixed
assets
Write-‐off
of
clinical
trial
prepayment
Total
Expenses
Consolidated
Note
2017
$'000
2016
$'000
4
5
6
586
10,507
11,093
464
3,590
4,054
(272)
(6,925)
(5,015)
(386)
(629)
(976)
(550)
(217)
(1,540)
(98)
(168)
-‐
(7)
-‐
(16,783)
(139)
(13,287)
(6,283)
(1,746)
(1,023)
(1,020)
(500)
(290)
(1,139)
(414)
-‐
(1,191)
-‐
(1,800)
(28,832)
Loss
before
income
tax
Income
tax
Loss
after
income
tax
for
the
year
attributable
to
the
owners
of
Benitec
Biopharma
Limited
7
16
(5,690)
-‐
(24,778)
-‐
(5,690)
(24,778)
Other
comprehensive
income/(loss)
Items
that
may
be
reclassified
subsequently
to
profit
and
loss
Foreign
currency
translation
gain/loss
Income
tax
on
items
that
may
be
reclassified
to
profit
and
loss
Total
comprehensive
income/(loss)
for
the
year
attributable
to
the
owners
of
Benitec
Biopharma
Limited
34
-‐
(19)
-‐
(5,656)
(24,797)
Basic
earnings/(loss)
cents
per
share
Diluted
earnings/(loss)
cents
per
share
28
28
(3.24)
(3.24)
(17.41)
(17.41)
The
above
statement
of
profit
or
loss
and
other
comprehensive
income
should
be
read
in
conjunction
with
the
accompanying
notes
Page
|
28
BENITEC
BIOPHARMA
LIMITED
Consolidated
Statement
of
Financial
Position
as
at
30
June
2017
ASSETS
Current
Assets
Cash
and
cash
equivalents
Other
financial
assets
Trade
and
other
receivables
Other
Total
Current
Assets
Non-‐Current
Assets
Deposits
Plant
and
equipment
Total
Non-‐Current
Assets
TOTAL
ASSETS
LIABILITIES
Current
liabilities
Trade
and
other
payables
Provisions
Total
Current
Liabilities
Non-‐Current
Liabilities
Provisions
Total
Non-‐Current
Liabilities
TOTAL
LIABILITIES
NET
ASSETS
EQUITY
Issued
capital
Reserves
Accumulated
losses
TOTAL
EQUITY
Note
2017
$'000
2016
$'000
8
9
10
11
17,375
100
4,406
281
22,162
18,230
28
977
149
19,384
59
445
504
-‐
506
506
22,666
19,890
12
13
919
206
1,125
833
202
1,035
35
35
18
18
1,160
1,053
21,506
18,837
14
15
16
155,580
1,674
(135,748)
21,506
147,641
2,565
(131,369)
18,837
The
above
statement
of
financial
position
should
be
read
in
conjunction
with
the
accompanying
notes
Page
|
29
BENITEC
BIOPHARMA
LIMITED
Consolidated
Statement
of
Changes
in
Equity
for
the
year
ended
30
June
2017
Issued
capital
$'000
Reserves
$'000
Accumulated
losses
$'000
Total
equity
$'000
Balance
at
1
July
2015
129,631
2,038
(107,791)
23,878
Loss
after
income
tax
Other
comprehensive
income
-
-‐
Foreign
exchange
translation
reserve
Total
comprehensive
income
-‐
-‐
-‐
-‐
(19)
(24,778)
-‐
(24,778)
(19)
(19)
(24,778)
(25,797)
Contributions
of
equity,
net
of
transaction
costs
Share-‐based
payments
Transfer
of
expired
share-‐based
payments
Balance
at
30
June
2016
18,010
-‐
-‐
147,641
-‐
1,746
(1,200)
2,565
-‐
-‐
1,200
(131,369)
18,010
1,746
-‐
18,837
Issued
capital
$'000
Reserves
$'000
Accumulated
losses
$'000
Total
equity
$'000
Balance
at
1
July
2016
147,641
2,565
(131,369)
18,837
Loss
after
income
tax
Other
comprehensive
income
-‐
Foreign
exchange
translation
reserve
Total
comprehensive
income
-‐
-‐
-‐
-‐
34
(5,690)
-‐
(5,690)
34
34
(5,690)
(5,656)
Contributions
of
equity,
net
of
transaction
costs
Share-‐based
payments
Transfer
of
expired
share-‐based
payments
Balance
at
30
June
2017
7,939
-‐
-‐
155,580
-‐
386
(1,311)
1,674
-‐
-‐
1,311
(135,748)
7,939
386
-‐
21,506
The
above
statement
of
changes
in
equity
should
be
read
in
conjunction
with
the
accompanying
notes
Page
|
30
BENITEC
BIOPHARMA
LIMITED
Consolidated
Statement
of
Cash
Flows
for
the
year
ended
30
June
2017
Cash
flows
from
operating
activities
Receipts
from
customers
Research
and
development
grants
Interest
received
Receipts
of
prepayment
Payments
to
suppliers
and
employees
Net
cash
used
in
operating
activities
Cash
flows
from
investing
activities
Purchase
of
plant
and
equipment
Security
deposits
Net
cash
used
in
investing
activities
Cash
flows
from
financing
activities
Proceeds
from
issue
of
shares
IPO
and
share
issue
transaction
costs
Net
cash
from
financing
activities
Net
decrease
in
cash
and
cash
equivalents
Cash
and
cash
equivalents
at
the
beginning
of
the
financial
year
Effects
of
exchange
rate
changes
on
cash
and
cash
equivalents
Cash
and
cash
equivalents
at
the
end
of
the
financial
year
Note
2017
$'000
2016
$'000
333
6,274
242
791
(15,944)
(8,304)
340
3,590
217
-‐
(24,355)
(20,208)
(171)
(131)
(302)
(342)
-‐
(342)
8,072
(133)
7,939
19,462
(1,952)
17,510
(667)
18,230
(188)
17,375
(3,040)
21,787
(517)
18,230
9
27
11
8
The
above
statement
of
cash
flows
should
be
read
in
conjunction
with
the
accompanying
notes
Page
|
31
BENITEC
BIOPHARMA
LIMITED
Notes
to
the
consolidated
financial
statements
30
June
2017
continued
Note
1.
Significant
accounting
policies
The
principal
accounting
policies
adopted
in
the
preparation
of
the
financial
statements
are
set
out
below.
These
policies
have
been
consistently
applied
to
all
the
years
presented,
unless
otherwise
stated.
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.
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.
New,
revised
or
amending
Accounting
Standards
and
Interpretations
adopted
In
the
current
year,
there
were
no
amendments
to
AASBs
issued
by
the
Australian
Accounting
Standards
Board
(AASB)
that
were
effective
for
the
current
financial
year
that
had
a
material
effect
on
the
Company,
mandatorily
effective
for
an
accounting
period
that
begins
on
or
after
1
July
2016.
New
Accounting
Standards
and
Interpretations
not
yet
mandatory
or
early
adopted
Certain
new
accounting
standards
and
interpretations
have
been
published
that
are
not
mandatory
for
30
June
2017
reporting
periods
and
have
not
been
early
adopted
by
the
group.
The
group’s
assessment
of
the
impact
of
these
new
standards
and
interpretations
is
set
out
below.
• AASB
9
Financial
Instruments
-‐
addresses
the
classification,
measurement
and
derecognition
of
financial
assets
and
financial
liabilities
and
introduces
new
rules
for
hedge
accounting.
In
December
2014,
the
AASB
made
further
changes
to
the
classification
and
measurement
rules
and
also
introduced
a
new
impairment
model.
These
latest
amendments
now
complete
the
new
financial
instruments
standard.
Impact
-‐
The
entity
is
yet
to
undertake
a
detailed
assessment
of
the
impact
of
AASB
9.
However,
based
on
the
entity’s
preliminary
assessment,
the
Standard
is
not
expected
to
have
a
material
impact
on
the
transactions
and
balances
recognised
in
the
financial
statements
when
it
is
first
adopted
for
the
year
ending
30
June
2019.
Mandatory
application
date
/
Date
of
adoption
by
group
-‐
Must
be
applied
for
financial
years
commencing
on
or
after
1
January
2018.
• AASB
15
Revenue
from
Contracts
with
Customers
-‐
The
AASB
has
issued
a
new
standard
for
the
recognition
of
revenue.
This
will
replace
AASB
118
which
covers
contracts
for
goods
and
services.
The
new
standard
is
based
on
the
principle
that
revenue
is
recognised
when
Page
|
32
BENITEC
BIOPHARMA
LIMITED
Notes
to
the
financial
statements
30
June
2017
continued
Note
1.
Significant
accounting
policies
continued
control
of
a
good
or
service
transfers
to
a
customer;
so
the
notion
of
control
replaces
the
existing
notion
of
risks
and
rewards.
Impact
-‐
The
entity
is
yet
to
undertake
a
detailed
assessment
of
the
impact
of
AASB
15.
However,
based
on
the
entity’s
preliminary
assessment,
the
Standard
is
not
expected
to
have
a
material
impact
on
the
transactions
and
balances
recognised
in
the
financial
statements
when
it
is
first
adopted
for
the
year
ending
30
June
2019
because
the
Company
does
not
yet
have
material
revenue.
The
standard
permits
a
modified
retrospective
approach
for
the
adoption.
Under
this
approach,
entities
will
recognise
transitional
adjustments
in
retained
earnings
on
the
date
of
initial
application
(eg
1
July
2017),
ie
without
restating
the
comparative
period.
They
will
only
need
to
apply
the
new
rules
to
contracts
that
are
not
completed
as
of
the
date
of
initial
application.
Mandatory
application
date
/
Date
of
adoption
by
group
-‐
commencing
on
or
after
1
January
2018.
Expected
date
of
adoption
by
the
group:
1
July
2018
• AASB
16
Leases
-‐
The
AASB
has
issued
a
new
standard
for
the
recognition
of
leases.
This
will
replace
AASB
117:
Leases.
The
new
standard
introduces
a
single
lessee
accounting
model
that
no
longer
requires
leases
to
be
classified
as
operating
or
financing.
Other
major
changes
include,
the
recognition
of
a
right-‐to-‐use
asset
and
liability,
depreciation
of
right-‐to-‐use
assets
in
line
with
AASB
116:
Property
Plant
and
Equipment,
variable
lease
payments
that
depend
on
an
index
or
rate
are
included
in
the
initial
measurement
of
lease
liability,
option
for
lessee
to
not
separate
non-‐lease
components
and
account
for
all
components
as
a
lease,
and
additional
disclosure
requirements.
Impact
-‐
The
entity
has
undertaken
a
detailed
review
and
has
concluded
that
there
will
be
no
material
impact
on
its
financial
position
on
the
transactions
and
balances
recognised
in
the
financial
statements
when
it
is
first
adopted
for
the
year
ending
30
June
2020
to
the
immaterial
size
of
leases
entered
into
by
the
Company.
The
Company’s
only
lease
is
the
lease
on
its
head
office
and
research
and
development
facilities.
Commitments
are
set
out
in
note
22.
The
Mandatory
application
date
/
Date
of
adoption
by
group
-‐
Must
be
applied
for
financial
years
commencing
on
or
after
1
January
2019.Expected
date
of
adoption
by
the
group:
1
July
2019.
There
are
no
other
standards
that
are
not
yet
effective
and
that
would
be
expected
to
have
a
material
impact
on
the
entity
in
the
current
or
future
reporting
periods
and
on
foreseeable
future
transactions.
Going
concern
The
directors
have
prepared
the
financial
statements
on
a
going
concern
basis
after
taking
into
consideration
the
net
loss
for
the
year
of
$5.690m
(2016:
$24.778m)
and
the
cash
and
cash
equivalents
balance
of
$17.375m
(2016:
$18.230m).
The
directors
have
recognised
the
capital
raisings
in
the
last
3
years,
performed
a
review
of
the
cash
flow
forecasts,
considered
the
cash
flow
needs
of
the
Group,
and
believe
that
the
strategies
in
place
are
appropriate
to
generate
funding
which
will
be
sufficient
to
maintain
the
going
concern
status
of
the
Group.
Much
of
the
forecast
cash
expenditure
is
project
related
and
is
discretionary.
Timing
of
this
expenditure
is
regularly
reviewed
and
is
dependent
upon
the
Group
being
able
to
generate
funding.
If
these
strategies
are
unsuccessful
then
the
Group
may
need
to
realise
its
assets
and
Page
|
33
BENITEC
BIOPHARMA
LIMITED
Notes
to
the
financial
statements
30
June
2017
continued
Note
1.
Significant
accounting
policies
continued
extinguish
liabilities
other
than
in
the
ordinary
course
of
business
and
at
amounts
different
to
those
disclosed
in
the
financial
report.
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
Benitec
Biopharma
Limited
('Company'
or
'parent
entity')
as
at
30
June
2017
and
the
results
of
all
subsidiaries
for
the
year
then
ended.
Benitec
Biopharma
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
it
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.
The
Company’s
100%
owned
subsidiary,
Tacere
Therapeutics,
Inc.
has
a
31
December
year
end.
The
Company
is
reviewing
the
appropriate
time
to
align
the
subsidiary
year
end
to
the
parent’s
year
end.
For
consolidation
purposes
Tacere
prepares
financial
statements
for
the
12
month
period
ended
30
June
that
are
used
to
consolidate
into
the
group
accounts.
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.
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
Operating
segments
are
presented
using
the
'management
approach',
where
the
information
presented
is
on
the
same
basis
as
the
internal
reports
provided
to
the
Chief
Operating
Decision
Makers
('CODM').
The
CODM
is
responsible
for
the
allocation
of
resources
to
operating
segments
and
assessing
their
performance.
Page
|
34
BENITEC
BIOPHARMA
LIMITED
Notes
to
the
financial
statements
30
June
2017
continued
Note
1.
Significant
accounting
policies
continued
Foreign
currency
translation
The
financial
statements
are
presented
in
Australian
dollars,
which
is
Benitec
Biopharma
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
year-‐end
exchange
rates
of
monetary
assets
and
liabilities
denominated
in
foreign
currencies
are
recognised
in
profit
or
loss.
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
Revenue
is
recognised
when
it
is
probable
that
the
economic
benefit
will
flow
to
the
Group
and
the
revenue
can
be
reliably
measured.
Revenue
is
measured
at
the
fair
value
of
the
consideration
received
or
receivable.
Licensing
revenue
and
royalties
Revenue
from
the
granting
of
licenses
is
recognised
in
accordance
with
the
terms
of
the
relevant
agreements
and
is
usually
recognised
on
an
accruals
basis,
unless
the
substance
of
the
agreement
provides
evidence
that
it
is
more
appropriate
to
recognise
revenue
on
some
other
systematic
rational
basis.
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.
Government
research
and
development
grants
Government
grants
are
recognised
at
fair
value
where
there
is
reasonable
assurance
that
the
grant
will
be
received
and
all
grant
conditions
will
be
met.
Grants
relating
to
expense
items
are
recognised
as
income
over
the
periods
necessary
to
match
the
grant
costs
they
are
compensating.
Grants
relating
to
assets
are
credited
to
deferred
income
at
fair
value
and
are
credited
to
income
over
the
expected
useful
life
of
the
asset
on
a
straight-‐line
basis.
Research
and
development
grant
revenue
is
recognised
as
income
when
a
reliable
estimate
can
be
made
of
the
amounts
receivable.
Page
|
35
BENITEC
BIOPHARMA
LIMITED
Notes
to
the
financial
statements
30
June
2017
continued
Note
1.
Significant
accounting
policies
continued
Income
tax
The
income
tax
expense
or
benefit
for
the
period
is
the
tax
payable
on
that
period's
taxable
income
based
on
the
applicable
income
tax
rate
for
each
jurisdiction,
adjusted
by
the
changes
in
deferred
tax
assets
and
liabilities
attributable
to
temporary
differences,
unused
tax
losses
and
the
adjustment
recognised
for
prior
periods,
where
applicable.
Deferred
tax
assets
and
liabilities
are
recognised
for
temporary
differences
at
the
tax
rates
expected
to
be
applied
when
the
assets
are
recovered
or
liabilities
are
settled,
based
on
those
tax
rates
that
are
enacted
or
substantively
enacted,
except
for:
●
When
the
deferred
income
tax
asset
or
liability
arises
from
the
initial
recognition
of
goodwill
or
an
asset
or
liability
in
a
transaction
that
is
not
a
business
combination
and
that,
at
the
time
of
the
transaction,
affects
neither
the
accounting
nor
taxable
profits;
or
●
When
the
taxable
temporary
difference
is
associated
with
interests
in
subsidiaries,
associates
or
joint
ventures,
and
the
timing
of
the
reversal
can
be
controlled
and
it
is
probable
that
the
temporary
difference
will
not
reverse
in
the
foreseeable
future.
Deferred
tax
assets
are
recognised
for
deductible
temporary
differences
and
unused
tax
losses
only
if
it
is
probable
that
future
taxable
amounts
will
be
available
to
utilise
those
temporary
differences
and
losses.
The
carrying
amount
of
recognised
and
unrecognised
deferred
tax
assets
are
reviewed
at
each
reporting
date.
Deferred
tax
assets
recognised
are
reduced
to
the
extent
that
it
is
no
longer
probable
that
future
taxable
profits
will
be
available
for
the
carrying
amount
to
be
recovered.
Previously
unrecognised
deferred
tax
assets
are
recognised
to
the
extent
that
it
is
probable
that
there
are
future
taxable
profits
available
to
recover
the
asset.
Deferred
tax
assets
and
liabilities
are
offset
only
where
there
is
a
legally
enforceable
right
to
offset
current
tax
assets
against
current
tax
liabilities
and
deferred
tax
assets
against
deferred
tax
liabilities;
and
they
relate
to
the
same
taxable
authority
on
either
the
same
taxable
entity
or
different
taxable
entities
which
intend
to
settle
simultaneously.
Benitec
Biopharma
Limited
(the
'head
entity')
and
its
wholly-‐owned
Australian
subsidiaries
have
formed
an
income
tax
consolidated
group
under
the
tax
consolidation
regime.
The
head
entity
and
each
subsidiary
in
the
tax
consolidated
group
continue
to
account
for
their
own
current
and
deferred
tax
amounts.
The
tax
consolidated
group
has
applied
the
'separate
taxpayer
within
group'
approach
in
determining
the
appropriate
amount
of
taxes
to
allocate
to
members
of
the
tax
consolidated
group.
No
tax
sharing
agreement
has
been
entered
between
entities
in
the
tax
consolidated
group.
In
addition
to
its
own
current
and
deferred
tax
amounts,
the
head
entity
also
recognises
the
current
tax
liabilities
(or
assets)
and
the
deferred
tax
assets
arising
from
unused
tax
losses
and
unused
tax
credits
assumed
from
each
subsidiary
in
the
tax
consolidated
group.
Current
and
non-‐current
classification
Assets
and
liabilities
are
presented
in
the
statement
of
financial
position
based
on
current
and
non-‐current
classification.
Page
|
36
BENITEC
BIOPHARMA
LIMITED
Notes
to
the
financial
statements
30
June
2017
continued
Note
1.
Significant
accounting
policies
continued
An
asset
is
classified
as
current
when:
it
is
either
expected
to
be
realised
or
intended
to
be
sold
or
consumed
in
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
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.
Cash
and
cash
equivalents
Cash
and
cash
equivalents
includes
cash
on
hand,
deposits
held
at
call
with
financial
institutions,
other
short-‐term,
highly
liquid
investments
with
original
maturities
of
three
months
or
less
that
are
readily
convertible
to
known
amounts
of
cash
and
which
are
subject
to
an
insignificant
risk
of
changes
in
value.
Trade
and
other
receivables
Other
receivables
are
recognised
at
amortised
cost,
less
any
provision
for
impairment.
Investments
and
other
financial
assets
Investments
and
other
financial
assets
are
initially
measured
at
fair
value.
Transaction
costs
are
included
as
part
of
the
initial
measurement,
except
for
financial
assets
at
fair
value
through
profit
or
loss.
They
are
subsequently
measured
at
either
amortised
cost
or
fair
value
depending
on
their
classification.
Classification
is
determined
based
on
the
purpose
of
the
acquisition
and
subsequent
reclassification
to
other
categories
is
restricted.
Financial
assets
are
derecognised
when
the
rights
to
receive
cash
flows
from
the
financial
assets
have
expired
or
have
been
transferred
and
the
Group
has
transferred
substantially
all
the
risks
and
rewards
of
ownership.
Loans
and
receivables
Loans
and
receivables
are
non-‐derivative
financial
assets
with
fixed
or
determinable
payments
that
are
not
quoted
in
an
active
market.
They
are
carried
at
amortised
cost
using
the
effective
interest
rate
method.
Gains
and
losses
are
recognised
in
profit
or
loss
when
the
asset
is
derecognised
or
impaired.
Impairment
of
financial
assets
The
Group
assesses
at
the
end
of
each
reporting
period
whether
there
is
any
objective
evidence
that
a
financial
asset
or
group
of
financial
assets
is
impaired.
Objective
evidence
includes
significant
financial
difficulty
of
the
issuer
or
obligor;
a
breach
of
contract
such
as
default
or
delinquency
in
payments;
the
lender
granting
to
a
borrower
concessions
due
to
economic
or
legal
reasons
that
the
lender
would
not
otherwise
do;
it
becomes
probable
that
the
borrower
will
enter
bankruptcy
or
other
financial
reorganisation;
the
disappearance
of
an
active
market
for
the
financial
asset;
or
observable
data
indicating
that
there
is
a
measurable
decrease
in
estimated
future
cash
flows.
Page
|
37
BENITEC
BIOPHARMA
LIMITED
Notes
to
the
financial
statements
30
June
2017
continued
Note
1.
Significant
accounting
policies
continued
The
amount
of
the
impairment
allowance
for
loans
and
receivables
carried
at
amortised
cost
is
the
difference
between
the
asset's
carrying
amount
and
the
present
value
of
estimated
future
cash
flows,
discounted
at
the
original
effective
interest
rate.
If
there
is
a
reversal
of
impairment,
the
reversal
cannot
exceed
the
amortised
cost
that
would
have
been
recognised
had
the
impairment
not
been
made
and
is
reversed
to
profit
or
loss.
Plant
and
equipment
Plant
and
equipment
is
stated
at
historical
cost
less
accumulated
depreciation
and
impairment.
Historical
cost
includes
expenditure
that
is
directly
attributable
to
the
acquisition
of
the
items.
Depreciation
is
calculated
on
a
straight-‐line
basis
to
write
off
the
net
cost
of
each
item
of
property,
plant
and
equipment
(excluding
land)
over
their
expected
useful
lives
as
follows:
Leasehold
improvements
Plant
and
equipment
period
of
the
lease
term
3-‐7
years
The
residual
values,
useful
lives
and
depreciation
methods
are
reviewed,
and
adjusted
if
appropriate,
at
each
reporting
date.
An
item
of
plant
and
equipment
is
derecognised
upon
disposal
or
when
there
is
no
future
economic
benefit
to
the
Group.
Gains
and
losses
between
the
carrying
amount
and
the
disposal
proceeds
are
taken
to
profit
or
loss.
Leases
The
determination
of
whether
an
arrangement
is
or
contains
a
lease
is
based
on
the
substance
of
the
arrangement
and
requires
an
assessment
of
whether
the
fulfilment
of
the
arrangement
is
dependent
on
the
use
of
a
specific
asset
or
assets
and
the
arrangement
conveys
a
right
to
use
the
asset.
Impairment
of
non-‐financial
assets
Other
intangible
assets
that
have
an
indefinite
useful
life
are
not
subject
to
amortisation
and
are
tested
annually
for
impairment,
or
more
frequently
if
events
or
changes
in
circumstances
indicate
that
they
might
be
impaired.
Other
non-‐financial
assets
are
reviewed
for
impairment
whenever
events
or
changes
in
circumstances
indicate
that
the
carrying
amount
may
not
be
recoverable.
An
impairment
loss
is
recognised
for
the
amount
by
which
the
asset's
carrying
amount
exceeds
its
recoverable
amount.
Recoverable
amount
is
the
higher
of
an
asset's
fair
value
less
costs
of
disposal
and
value-‐in-‐use.
The
value-‐
in-‐use
is
the
present
value
of
the
estimated
future
cash
flows
relating
to
the
asset
using
a
pre-‐tax
discount
rate
specific
to
the
asset
or
cash-‐generating
unit
to
which
the
asset
belongs.
Assets
that
do
not
have
independent
cash
flows
are
grouped
together
to
form
a
cash-‐generating
unit.
Trade
and
other
payables
These
amounts
represent
liabilities
for
goods
and
services
provided
to
the
Group
prior
to
the
end
of
the
financial
year
and
which
are
unpaid.
Due
to
their
short-‐term
nature,
they
are
measured
at
amortised
cost
and
are
not
discounted.
The
amounts
are
unsecured
and
are
usually
paid
within
30
days
of
recognition.
Page
|
38
BENITEC
BIOPHARMA
LIMITED
Notes
to
the
financial
statements
30
June
2017
continued
Note
1.
Significant
accounting
policies
continued
Employee
benefits
Short-‐term
employee
benefits
Liabilities
for
wages
and
salaries
and
other
employee
benefits
expected
to
be
settled
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
Employee
benefits
not
expected
to
be
settled
within
12
months
of
the
reporting
date
are
measured
as
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
high
quality
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
share-‐based
compensation
benefits
are
provided
to
directors
and
senior
executives.
The
plan
currently
in
place
to
provide
these
benefits
is
the
Employee
Share
Option
Plan
('ESOP').
Equity-‐settled
transactions
are
awards
of
shares,
or
options
over
shares
that
are
provided
to
employees
in
exchange
for
the
rendering
of
services.
The
cost
of
equity-‐settled
transactions
are
measured
at
fair
value
on
grant
date.
Fair
value
is
independently
determined
using
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
Group
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.
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.
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.
Page
|
39
BENITEC
BIOPHARMA
LIMITED
Notes
to
the
financial
statements
30
June
2017
continued
Note
1.
Significant
accounting
policies
continued
If
the
non-‐vesting
condition
is
within
the
control
of
the
Group
or
employee,
the
failure
to
satisfy
the
condition
is
treated
as
a
cancellation.
If
the
condition
is
not
within
the
control
of
the
Group
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.
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.
The
dilutive
effect,
if
any,
of
outstanding
options
is
reflected
as
additional
share
dilution
in
the
computation
of
earnings
per
share.
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.
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.
Costs
related
to
an
initial
offering
are
expensed
in
the
statement
of
profit
or
loss
and
other
comprehensive
income.
Earnings
per
share
Basic
earnings
per
share
Basic
earnings
per
share
is
calculated
by
dividing
the
profit
attributable
to
the
owners
of
Benitec
Biopharma
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.
Page
|
40
BENITEC
BIOPHARMA
LIMITED
Notes
to
the
financial
statements
30
June
2017
continued
Note
1.
Significant
accounting
policies
continued
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.
Comparative
figures
When
required
by
accounting
standards,
comparative
figures
have
been
adjusted
to
conform
to
changes
in
the
presentation
for
the
current
financial
year.
Rounding
of
amounts
The
Parent
entity
has
applied
the
relief
available
to
it
under
ASIC
Corporations
(Rounding
in
Financial/Directors’
Reports).
Instrument
2016/191
and
accordingly
amounts
in
the
financial
statements
and
Directors
Report
have
been
rounded
off
to
the
nearest
$1,000,
or
in
certain
cases,
to
the
nearest
dollars.
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.
Research
and
development
expenses
Management
does
not
consider
the
development
programs
to
be
sufficiently
advanced
to
reliably
determine
the
economic
benefits
and
technical
feasibility
to
justify
capitalisation
of
development
costs.
These
costs
have
been
recognised
as
an
expense
when
incurred.
Research
and
development
expenses
relate
primarily
to
the
cost
of
conducting
clinical
and
pre-‐clinical
trials.
Clinical
development
costs
are
a
significant
component
of
research
and
development
expenses.
Estimates
have
been
used
in
determining
the
expense
liability
under
certain
clinical
trial
contracts
where
services
have
been
performed
but
not
yet
invoiced.
Generally,
the
costs,
and
therefore
estimates,
associated
with
clinical
trial
contracts
are
based
on
the
number
of
patients,
drug
administration
cycles,
the
type
of
treatment
and
the
outcome
being
Page
|
41
BENITEC
BIOPHARMA
LIMITED
Notes
to
the
financial
statements
30
June
2017
continued
Note
2.
Critical
accounting
judgements,
estimates
and
assumptions
continued
Research
and
development
expenses
continued
The
length
of
time
before
actual
amounts
can
be
determined
will
vary
depending
on
length
of
the
patient
cycles
and
the
timing
of
the
invoices
by
the
clinical
trial
partners.
Research
and
development
refundable
tax
offsets
The
Group
accounts
for
the
federal
government
research
and
development
grant
tax
incentive
when
a
reliable
estimate
of
the
amounts
receivable
can
be
made.
In
the
year
ended
June
30
2017
reporting
period
detailed
reporting
systems
were
implemented
to
allow
for
the
first
time
a
reliable
estimate
to
be
made
of
the
grant
income
that
is
expected
to
be
received
for
the
current
period.
In
determining
the
estimate
management
reviews
historical
claims,
Government
overseas
findings
enabling
the
claim
of
overseas
expenditure
and
the
allocation
of
staff
and
overheads
costs
within
approved
projects.
Grant
Income
for
the
year
ended
June
30
2017
includes
an
estimate
of
Research
and
Development
grant
receivable
for
June
30
2017
of
$4,233k.
(refer
Note
5)
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
either
the
Black-‐Scholes
model
taking
into
account
the
terms
and
conditions
upon
which
the
instruments
were
granted.
The
accounting
estimates
and
assumptions
relating
to
equity-‐settled
share-‐based
payments
would
have
no
impact
on
the
carrying
amounts
of
assets
and
liabilities
within
the
next
annual
reporting
period
but
may
impact
profit
or
loss
and
equity.
Recovery
of
deferred
tax
assets
Deferred
tax
assets
are
recognised
for
deductible
temporary
differences
only
if
the
Group
considers
it
is
probable
that
future
taxable
amounts
will
be
available
to
utilise
those
temporary
differences
and
losses.
Given
the
Company’s
and
each
individual
entities’
history
of
recent
losses,
the
Group
has
not
recognised
a
deferred
tax
asset
with
regard
to
unused
tax
losses
and
other
temporary
differences,
as
it
has
not
been
determined
whether
the
Company
or
its
subsidiaries
will
generate
sufficient
taxable
income
against
which
the
unused
tax
losses
and
other
temporary
differences
can
be
utilised.
Costs
of
capital
raising
Costs
directly
attributable
to
an
equity
transaction
are
held
in
the
statement
of
financial
position
until
the
completion
of
the
transaction.
On
completion,
the
costs
will
be
applied
against
issued
capital.Costs
associated
with
abandoned
or
sub-‐optimal
equity
transactions
are
expensed
to
profit
or
loss
in
the
year
the
transaction
is
determined
to
no
longer
be
viable
under
existing
conditions.
Note
3.
Operating
segments
Identification
of
reportable
operating
segments
The
Group
has
only
one
operating
segment
during
the
financial
year,
being
the
global
commercialisation
by
licensing
and
partnering
of
patents
and
licences
in
biotechnology,
more
specifically
in
functional
genomics,
with
applications
in
biomedical
research
and
human
therapeutics.
This
operating
segment
is
based
on
the
internal
reports
that
are
reviewed
and
used
by
the
Board
of
Directors
(who
are
identified
as
the
Chief
Operating
Decision
Makers
('CODM'))
in
assessing
performance
and
in
determining
the
allocation
of
resources.
The
information
reported
to
the
CODM
is
on
at
least
quarterly.
The
group
sources
some
of
its
revenue
from
the
United
States
of
America
and
therefore
presents
the
split
by
geographical
region.
Page
|
42
BENITEC
BIOPHARMA
LIMITED
Notes
to
the
financial
statements
30
June
2017
continued
Note
3.
Operating
segment
continued
Geographical
locations
Australia
USA
Revenues
from
External
Customers
June
2017
$’000
June
2016
$’000
Non
current
assets
excluding
financial
assets
and
income
tax
June
2016
June
2017
$’000
$’000
333
-‐
333
247
-‐
247
112
333
445
127
379
506
Note
4.
Revenue
Licensing
revenue
and
royalties
Interest
Note
5.
Other
income
Australian
Government
Research
and
Development
refundable
tax
offset:
- Received
during
the
year
relating
to
prior
expenditure
- Estimated
relating
to
current
year
expenditure
(Refer
to
Note
2)
Note
6.
Expenses
Loss
before
income
tax
includes
the
following
specific
expenses:
Depreciation
Leasehold
improvements
Plant
and
equipment
Total
depreciation
Research
and
development
Project
expenses
Other
IP
related
expenses
Total
research
and
development
Employee
benefits
expense
Defined
contribution
superannuation
expense
Employee
benefits
expense
excluding
superannuation
Rental
expense
relating
to
operating
leases
Minimum
lease
payments
2017
$'000
2016
$'000
333
253
586
247
217
464
6,274
4,233
10,507
3,590
-‐
3,590
53
164
217
6,456
469
6,925
240
4,775
5,015
205
85
290
12,240
1,047
13,287
280
6,003
6,283
376
265
Page
|
43
BENITEC
BIOPHARMA
LIMITED
Notes
to
the
financial
statements
30
June
2017
continued
Note
7.
Income
tax
benefit
Income
tax
benefit
Current
tax
Aggregate
income
tax
benefit
Numerical
reconciliation
of
income
tax
benefit
and
tax
at
the
statutory
rate
Loss
before
income
tax
benefit
Tax
at
the
statutory
tax
rate
of
27.5%
(30%)
Tax
effect
amounts
which
are
not
deductible/(taxable)
in
calculating
taxable
income:
R&D
expenses
R
and
D
incentive
income
Legal
expenses
Share-‐based
payments
Timing
differences
utilised
not
previously
recognised
Write
off
prepayment
Impact
of
foreign
exchange
rate
differences
Tax
losses
not
brought
to
account
Income
tax
benefit
2017
$'000
2016
$'000
-‐
-‐
-‐
-‐
(5,690)
(24,778)
(1,565)
(7,433)
2,676
(2,889)
154
106
(506)
-‐
2
(2,022)
2,022
-‐
4,151
(1,090)
59
524
(277)
540
46
(3,480)
3,480
-‐
The
above
potential
tax
benefit
has
not
been
recognised
in
the
statement
of
financial
position.
These
tax
losses
are
recognised
only
if
the
consolidated
entity
considers
it
is
probable
that
future
taxable
amounts
will
be
available
to
utilise
those
temporary
differences
and
losses.
The
2016
numbers
have
been
amended
due
to
the
lodgement
of
an
amended
2016
tax
return.
Tax
losses
for
which
no
deferred
tax
asset
has
been
recognised
-‐
Australia
- Tax
losses
not
recognised
- Capital
losses
not
recognised
- Other
deferred
tax
assets
not
recognised
60,382
1,272
2,776
64,430
53,031
1,272
4,225
58,528
Potential
tax
benefit
of
tax
assets
not
recognised
at
27.5%
(30%)
17,718
17,558
Tax
losses
for
which
no
deferred
tax
asset
has
been
recognised
-‐
US
(Tacere)
-
Tax
losses
not
recognised
Potential
tax
benefit
of
tax
assets
not
recognised
at
34%
-‐
US
955
1,137
324
387
The
above
potential
tax
benefit,
which
excludes
tax
losses,
for
deductible
temporary
differences
has
not
been
recognised
in
the
statement
of
financial
position
as
the
recovery
of
this
benefit
is
uncertain.
Page
|
44
BENITEC
BIOPHARMA
LIMITED
Notes
to
the
financial
statements
30
June
2017
continued
Note
8.
Current
assets
-‐
cash
and
cash
equivalents
Cash
at
bank
Cash
on
deposit
Note
9.
Current
assets
-‐
trade
and
other
receivables
Settlement
receivable*
Australian
Government
Research
and
Development
refundable
tax
offset
receivable
Other
receivable
2017
$'000
2016
$'000
4,349
13,026
17,375
552
17,678
18,230
109
4,233
64
4,406
900
-‐
77
977
*
On
August
26,
2016,
a
settlement
agreement
was
reached
for
the
return
of
$900k
of
a
$2.7m
clinical
trial
prepayment
that
had
previously
been
shown
in
the
June
2015
financial
statements.
Payment
was
due
on
31
December
2016.
Subsequent
to
year
end
the
outstanding
settlement
receivable
was
received.
The
prepayment
had
originally
been
made
to
conduct
a
small
cell
lung
cancer
program.
The
lung
cancer
program
was
cancelled
in
the
year
ended
June
2016.
Other
than
above
there
is
no
receivable
balance
that
is
either
past
due
or
impaired.
Note
10.
Current
assets
-‐
other
Prepayments
Note
11.
Non-‐current
assets
-‐
property,
plant
and
equipment
Leasehold
improvements
-‐
at
cost
Less:
Accumulated
depreciation
Plant
and
equipment
-‐
at
cost
Less:
Accumulated
depreciation
2017
$'000
2016
$'000
281
281
149
149
79
(19)
60
889
(504)
385
264
(220)
44
877
(415)
462
445
506
Reconciliations
Reconciliations
of
the
written
down
values
at
the
beginning
and
end
of
the
current
and
previous
financial
year
are
set
out
below:
Balance
at
30
June
2015
Additions
Depreciation
expense
FX
loss
Balance
at
30
June
2016
Leasehold
Plant
and
improvement
equipment
$'000
$'000
Total
$'000
237
12
(205)
-‐
44
219
330
(85)
(2)
462
456
342
(290)
(2)
506
Page
|
45
BENITEC
BIOPHARMA
LIMITED
Notes
to
the
financial
statements
30
June
2017
continued
Note
11.
Non-‐current
assets
-‐
property,
plant
and
equipment
continued
Balance
at
30
June
2016
b’fwd
Additions
Depreciation
expense
FX
loss
Balance
at
30
June
2017
Note
12.
Current
liabilities
-‐
trade
and
other
payables
Trade
payables
Other
payables
Note
13.
Current
liabilities
-‐
provisions
Employee
benefits
Provision
for
make
good
Leasehold
Plant
and
improvement
equipment
$'000
$'000
Total
$'000
44
74
(53)
(5)
60
462
97
(164)
(10)
385
506
171
(217)
(15)
445
2017
$'000
2016
$'000
174
745
919
179
27
206
538
295
833
202
-‐
202
Note
14.
Equity
-‐
issued
capital
2017
Shares
2016
Shares
2017
$'000
2016
$'000
Ordinary
shares
-‐
fully
paid
205,142,734
146,529,096
155,580
147,641
Movements
in
ordinary
share
capital
Details
Date
Shares
Issue
price
$'000
Balance
Issue
of
shares
Nant
Capital
Issue
of
shares
Nant
Capital
Conversion
of
Warrants
Share
issue
transaction
costs
Balance
The
weighted
average
number
of
shares
on
issue
during
the
twelve
months
to
June
30,
2017
was
30
June
2016
24
October
2016
13
March
2017
11
April
2017
146,529,096
29,305,819
29,305,819
2,000
0.0895
0.1859
0.3635
30
June
2017
205,142,734
147,641
2,623
5,448
1
(133)
155,580
175,433,909
Page
|
46
BENITEC
BIOPHARMA
LIMITED
Notes
to
the
financial
statements
30
June
2017
continued
Note
14.
Equity
-‐
issued
capital
continued
Issued
capital
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.
Share
buy-‐back
There
is
no
current
on-‐market
share
buy-‐back.
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.
The
capital
structure
of
the
Group
consists
of
cash
and
cash
equivalents
and
equity
attributable
to
equity
holders.
Operating
globally,
the
Group
develops
speciality
pharmaceutical
products.
The
overall
strategy
of
the
Group
is
to
continue
its
drug
development
programs,
which
depends
on
selling
assets
and
raising
additional
equity
to
fund
the
activities.
The
capital
risk
management
policy
remains
unchanged
from
the
2016
Annual
Report.
Note
15.
Equity
Reserves
Foreign
currency
reserve
Share-‐based
payments
reserve
2017
$'000
2016
$'000
(1,285)
2,959
1,674
(1,319)
3,884
2,565
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.
Share-‐based
payments
reserve
The
reserve
is
used
to
recognise
the
value
of
equity
benefits
provided
to
employees
and
directors
as
part
of
their
remuneration,
and
other
parties
as
part
of
their
compensation
for
services.
Movements
in
reserves
Movements
in
each
class
of
reserve
during
the
current
and
previous
financial
year
are
set
out
below:
Page
|
47
BENITEC
BIOPHARMA
LIMITED
Notes
to
the
financial
statements
30
June
2017
continued
Note
15.
Equity
Reserves
continued
Balance
at
30
June
2015
Foreign
currency
translation
Share-‐based
payments
Transfer
of
expired
share-‐based
payments
Balance
at
30
June
2016
Foreign
currency
translation
Share-‐based
payments
Balance
at
30
June
2017
Note
16.
Equity
-‐
accumulated
losses
Accumulated
losses
at
the
beginning
of
the
financial
year
Loss
after
income
tax
benefit
for
the
year
Transfer
from
share-‐based
payment
reserve
for
expired
options
Accumulated
losses
at
the
end
of
the
financial
year
Foreign
Share-‐
based
currency
payments
$'000
$'000
Total
$'000
(1,300)
(19)
-‐
-‐
(1,319)
34
(1,285)
3,338
-‐
1,746
(1,200)
3,884
(925)
2,959
2,038
(19)
1,746
(1,200)
2,565
34
(925)
1,674
2017
$'000
2016
$'000
(131,369)
(5,690)
1,311
(135,748)
(107,791)
(24,778)
1,200
(131,369)
Note
17.
Equity
-‐
dividends
There
were
no
dividends
paid,
recommended
or
declared
during
the
current
or
previous
financial
year.
Note
18.
Financial
instruments
Financial
risk
management
objectives
The
Group's
activities
expose
it
to
a
variety
of
financial
risks:
market
risk
(including
foreign
currency
risk
and
interest
rate
risk)
and
liquidity
risk.
The
Group’s
principal
financial
instruments
comprise
receivables,
payables,
cash
and
short-‐term
deposits.
The
Group
manages
its
exposure
to
key
financial
risks,
including
interest
rate
and
currency
risk
in
accordance
with
the
Company
financial
risk
management
policy.
The
objective
of
the
policy
is
to
protect
the
assets
and
provide
a
solid
return.
Financial
Assets
Cash
and
cash
equivalents
Trade
and
other
receivables
Total
Financial
Assets
Financial
Liabilities
Trade
and
other
payables
Total
Financial
Liabilities
2017
$'000
2016
$'000
17,375
4,406
21,781
18,230
977
19,307
919
919
833
833
Page
|
48
BENITEC
BIOPHARMA
LIMITED
Notes
to
the
financial
statements
30
June
2017
continued
Note
18.
Financial
instruments
continued
Market
risk
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.
At
the
June
30
2017
the
Company
held
USD
cash
or
cash
equivalents
of
AUD$906k
and
trade
payables
and
accruals
of
AUD$260k.
Net
USD
exposure
in
AUD
of
$646k.
Each
1
cent
movement
in
the
AUD/USD
exchange
rate
has
an
+/-‐
effect
of
AUD
$6k
on
profit
and
net
assets
of
the
Company.
Exposures
to
foreign
exchange
rates
vary
during
the
year
depending
on
the
volume
of
overseas
transactions.
None
the
less
the
analysis
above
is
considered
to
be
appropriate
of
the
Group’s
exposure
to
currency
risk.
Interest
rate
risk
The
Group
generates
income
from
interest
on
surplus
funds.
At
reporting
date,
the
Group
had
the
following
assets
exposed
to
Australian
variable
interest
rate
risk
that
are
not
designated
in
cash
flow
hedges.
As
at
the
reporting
date,
the
Group
had
the
following
variable
rate
cash
and
cash
equivalents
outstanding:
Cash
and
cash
equivalents
Net
exposure
to
cash
flow
interest
rate
risk
Weighted
average
interest
rate
%
Balance
Weighted
average
interest
rate
%
$'000
1%
17,375
17,375
1%
Balance
$'000
18,230
18,230
The
company
has
forecast
reducing
cash
balances
over
the
coming
twelve
months,
as
a
result
net
exposure
to
interest
risk
will
diminish.
An
analysis
by
remaining
contractual
maturities
in
shown
in
'liquidity
and
interest
rate
risk
management'
below.
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
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.
The
Group
does
not
hold
any
collateral.
Liquidity
risk
Vigilant
liquidity
risk
management
requires
the
Group
to
maintain
sufficient
liquid
assets
(mainly
cash
and
cash
equivalents)
to
be
able
to
pay
debts
as
and
when
they
become
due
and
payable.
.
Page
|
49
BENITEC
BIOPHARMA
LIMITED
Notes
to
the
financial
statements
30
June
2017
continued
Note
18.
Financial
instruments
continued
Liquidity
risk
continued
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
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.
Weighted
average
interest
rate
%
1
year
or
less
Between
1
and
2
years
Between
2
and
5
years
Over
5
years
Remaining
contractual
maturities
$'000
$'000
$'000
$'000
$'000
-‐%
-‐%
174
745
919
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
174
745
919
%
$'000
$'000
$'000
$'000
$'000
-‐%
-‐%
538
295
833
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
538
295
833
2017
Non-‐derivatives
Non-‐interest
bearing
Trade
payables
Other
payables
Total
non-‐derivatives
2016
Non-‐derivatives
Non-‐interest
bearing
Trade
payables
Other
payables
Total
non-‐derivatives
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.
Note
19.
Key
management
personnel
disclosures
Compensation
The
aggregate
compensation
made
to
directors
and
other
members
of
key
management
personnel
of
the
Group
is
set
out
below:
Short-‐term
employee
benefits
Post-‐employment
benefits
Long-‐term
benefits
Share-‐based
payments
2017
$
2016
$
76,623
32,537
1,539,777
2,048,543
55,630
13,209
418,986
1,011,851
2,067,923
3,129,233
Page
|
50
BENITEC
BIOPHARMA
LIMITED
Notes
to
the
financial
statements
30
June
2017
continued
Note
20.
Remuneration
of
auditors
During
the
financial
year
the
following
fees
were
paid
or
payable
for
services
provided
by
Grant
Thornton
Audit
Pty
Ltd,
the
auditor
of
the
Company:
Audit
services
-‐
Grant
Thornton
Audit
Pty
Ltd
Audit
or
review
of
the
financial
statements
Audit
or
review
of
the
financial
statements
FY
2016
Other
audit
services
- F1
review
- F3
review
- S8
review
Other
services
-‐
Grant
Thornton
Audit
Pty
Ltd
Tax
compliance
services
2017
$
2016
$
214,333
27,600
178,250
-‐
20,800
9,561
-‐
23,695
-‐
10,200
23,150
23,150
22,250
22,250
295,444
234,395
Note
21.
Contingent
liabilities
and
commitments
Tacere
Inc.
(100%
owned
subsidiary
of
entity)
On
December
18,
2012,
the
Company
announced
the
appointment
of
Synteract,
Inc.
as
its
Clinical
Research
Organisation
responsible
for
the
progression
of
TT-‐034
into
Phase
I/IIa
clinical
trials
in
the
U.S.
The
Company
has
negotiated
a
contract
with
favourable
commercial
terms,
in
some
instances
requiring
prepayment,
for
Synteract
to
continue
to
manage
the
Phase
I/IIa
clinical
trial
and
the
long
term
patient
follow-‐up
through
2016
and
beyond.
While
the
Company
announced
on
February
20,
2016
that
is
was
terminating
the
HCV
program,
Benitec
is
committed
to
completing
the
study
and
the
company’s
estimate
of
the
cost,
assuming
all
patients
remain
in
the
study
and
the
follow-‐up
continues
to
2021
is
a
maximum
of
$600k.
The
scenario
of
all
patients
remaining
in
the
study
to
2021
is
most
unlikely
and
the
actual
cost
is
likely
to
be
far
less
than
the
nominated
contingency
of
$600k.
Parent
entity
On
July
20,
2016,
the
Company
signed
a
contract
with
RxGen
Inc.
to
conduct
a
study
to
evaluate
the
ocular
tolerance
of
GFP
expressing
vector
variants
in
non-‐human
primates.
On
February
22,
2017,
the
Company
signed
a
second
contract
with
RxGen
Inc.
to
conduct
an
additional
evaluation
of
the
ocular
tolerance
of
GFP
expressing
vector
variants
in
non-‐human
primates.
On
June
8,
2017,
the
Company
signed
a
third
contract
with
RxGen
Inc.
to
conduct
an
evaluation
of
the
efficacy
of
ddRNAi
vector
candidates
in
a
laser-‐induced
choroidal
neovascularization
model
in
African
green
monkeys.
It
is
estimated
that
$600k
is
outstanding
under
these
contracts.
On
December
20,
2016,
the
Company
signed
a
Collaborative
Research
Agreement
with
Royal
Holloway
University
of
London
to
support
studies
in
an
OPMD
animal
model
with
the
Company’s
clinical
constructs.
It
is
estimated
that
$500k
is
outstanding
under
these
contracts.
On
May
22,
2017,
the
Company
signed
a
Master
Services
Agreement
with
VGXI,
Inc.
to
manufacture
clinical
supplies
of
BB-‐401
to
support
the
planned
Phase
2
clinical
trial.
It
is
estimated
that
$250k
is
outstanding
under
these
contracts
The
Company
has
contracted
for
scientific
work
on
the
therapeutic
programs,
as
described
above,
and
payments
total
approximately
$2,030k.
(June
30,
2016:
$2,720k).
Page
|
51
BENITEC
BIOPHARMA
LIMITED
Notes
to
the
financial
statements
30
June
2017
continued
Note
22.
Commitments
Lease
commitments
-‐
operating
Committed
at
the
reporting
date
but
not
recognised
as
liabilities,
payable:
Within
one
year
One
to
five
years
2017
$'000
2016
$'000
169
89
258
126
98
224
Operating
lease
commitments
includes
contracted
amounts
for
offices
under
non-‐cancellable
operating
leases
expiring
within
3
years
with,
in
some
cases,
options
to
extend.
The
leases
have
various
escalation
clauses.
On
renewal,
the
terms
of
the
leases
are
renegotiated.
Parent
entity
Benitec
Biopharma
Limited
is
the
parent
entity.
Subsidiaries
Interests
in
subsidiaries
are
set
out
in
note
25.
Key
management
personnel
Disclosures
relating
to
key
management
personnel
are
set
out
in
note
19
and
the
remuneration
report
in
the
directors'
report.
Note
23.
Related
party
transactions
The
following
transactions
occurred
with
related
parties:
Payment
for
other
expenses:
Legal
services
paid
/
payable
to
Francis
Abourizk
Lightowlers,
a
law
firm
in
which
Mr
Peter
Francis
is
a
partner
and
has
a
beneficial
interest.
Consultancy
fees
for
executive
duties
paid/payable
to
NewStar
Ventures
Ltd,
a
corporation
in
which
Dr
John
Chiplin
is
a
director
and
has
a
beneficial
interest.
2017
$
2016
$
191,050
116,540
32,133
165,983
Receivable
from
and
payable
to
related
parties
There
were
no
trade
receivables
from
or
trade
payables
to
related
parties
at
the
current
and
previous
reporting
date.
Loans
to/from
related
parties
There
were
no
loans
to
or
from
related
parties
at
the
current
and
previous
reporting
date.
Terms
and
conditions
All
transactions
were
made
on
normal
commercial
terms
and
conditions
and
at
market
rates.
Note
24.
Parent
entity
information
Set
out
below
is
the
supplementary
information
about
the
parent
entity.
Statement
of
profit
or
loss
and
other
comprehensive
income
Loss
after
income
tax
Total
comprehensive
income
2017
$'000
2016
$'000
(5,835)
(5,835)
(25,917)
(25,917)
Page
|
52
BENITEC
BIOPHARMA
LIMITED
Notes
to
the
financial
statements
30
June
2017
continued
Note
24.
Parent
entity
information
continued
Statement
of
financial
position
Total
current
assets
Total
assets
Total
current
liabilities
Total
liabilities
Equity
Issued
capital
Share-‐based
payments
reserve
Accumulated
losses
Total
equity
2017
$'000
2016
$'000
21,421
22,868
18,948
20,237
969
1,004
845
863
155,580
2,959
(136,675)
21,864
147,641
3,884
(132,151)
19,374
Guarantees
entered
into
by
the
parent
entity
in
relation
to
the
debts
of
its
subsidiaries
The
parent
entity
had
no
guarantees
in
relation
to
the
debts
of
its
subsidiaries
as
at
30
June
2017
and
30
June
2016.
Contingent
liabilities
The
parent
entity
had
no
contingent
liabilities
as
at
30
June
2017
(2016:
nil),
other
than
the
contingent
liabilities
described
as
belonging
to
the
parent
entity
in
note
21.
Capital
commitments
-‐
Property,
plant
and
equipment
The
parent
entity
had
no
capital
commitments
for
property,
plant
and
equipment
as
at
30
June
2017
and
30
June
2016.
Significant
accounting
policies
The
accounting
policies
of
the
parent
entity
are
consistent
with
those
of
the
Group,
as
disclosed
in
note
1,
except
for
the
following:
●
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.
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:
Name
Benitec
Australia
Limited
Benitec
Biopharma
Limited
Benitec,
Inc.
Benitec
LLC
RNAi
Therapeutics,
Inc.
Tacere
Therapeutics,
Inc.*
Principal
place
of
business
/
Country
of
incorporation
Australia
United
Kingdom
USA
USA
USA
USA
2017
%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
2016
%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
Page
|
53
BENITEC
BIOPHARMA
LIMITED
Notes
to
the
financial
statements
30
June
2017
continued
Note
25.
Interests
in
subsidiaries
continued
All
companies
in
the
Group
adopt
the
same
accounting
policies.
*
Note
Tacere
year
end
is
31
December
which
was
the
year
end
date
when
the
Company
was
acquired.
Note
26.
Events
after
the
reporting
period
No
matter
or
circumstance
has
arisen
since
30
June
2017
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
2017
$'000
2016
$'000
Loss
after
income
tax
benefit
for
the
year
(5,690)
(24,778)
Adjustments
for:
Accrued
provision
Promega
Accrued
R&D
grant
Accrued
interests
Loss
on
sale
Depreciation
and
amortisation
Share-‐based
payments
Unrealised
Foreign
exchange
Issue
of
ordinary
shares
to
Biomics
Impairment
of
prepayment
Change
in
operating
assets
and
liabilities:
Increase/(Decrease)
in
trade
and
other
receivables
(Decrease)/Increase
in
other
current
assets
Increase/(Decrease)
in
trade
and
other
payables
(Decrease)/Increase
in
employee
benefits
Increase/(Decrease)
in
provision
Net
cash
used
in
operating
activities
18
(4,233)
(10)
6
217
386
242
-‐
-‐
814
(182)
106
(3)
25
(8,304)
60
-‐
-‐
-‐
290
1,746
506
500
1,800
(854)
1,178
(683)
27
-‐
(20,208)
Note
28.
Earnings
per
share
Loss
after
income
tax
attributable
to
the
owners
of
Benitec
Biopharma
Limited
(5,690)
(24,778)
Number
Number
Weighted
average
number
of
ordinary
shares
used
in
calculating
basic
earnings
per
share
Weighted
average
number
of
ordinary
shares
used
in
calculating
diluted
earnings
per
share
175,433,909
142,312,486
175,433,909
142,312,486
Basic
earnings
per
share
Diluted
earnings
per
share
Cents
(3.24)
(3.24)
Cents
(17.41)
(17.41)
Outstanding
options
to
acquire
ordinary
shares
are
not
considered
dilutive
for
the
years
ended
30
June
2017
and
30
June
2016.
Page
|
54
BENITEC
BIOPHARMA
LIMITED
Notes
to
the
financial
statements
30
June
2017
continued
Note
29.
Share-‐based
payments
Benitec
Biopharma
Limited
Employees
Share
Option
Plan
(ESOP):
Description
of
plan
The
Group
may
from
time
to
time
issue
employee’s
options
to
acquire
shares
in
the
parent
at
a
fixed
price.
Each
option
when
exercised
entitles
the
option
holder
to
one
share
in
the
Parent
Company.
Options
are
exercisable
on
or
before
an
expiry
date,
do
not
carry
any
voting
or
dividend
rights
and
are
not
transferable
except
on
death
of
the
option
holder.
The
following
table
shows
the
number
and
weighted
average
exercise
price
(WAEP)
of
share
options
issued
under
the
ESOP:
Outstanding
at
the
beginning
of
the
year
Granted
during
the
year
Exercised
during
the
year
Lapsed
or
forfeited
during
the
year
Outstanding
at
the
end
of
the
year
2017
Number
12,220,000
2,200,000
-‐
(4,696,000)
9,724,000
2017
WAEP
1.234
0.166
-‐
1.164
0.832
2016
Number
12,500,000
6,720,000
-‐
(7,000,000)
12,220,000
2016
WAEP
1.234
0.77
-‐
1.06
1.079
Options
exercisable
at
the
end
of
the
year
6,497,333
8,292,000
Details
of
ESOP
share
options
outstanding
as
at
end
of
year:
Grant
date
Expiry
date
26
September
2011
26
September
2016
17
November
2012
**
17
November
2017
7
February
2012
6
November
2012
10
November
2013
*
22
August
2013
**
15
May
2014
**
17
December
2014
**
6
May
2015
**
12
November
2015*
9
August
2016**
7
February
2017
16
November
2017
18
May
2018
22
August
2018
15
May
2019
17
December
2019
6
May
2020
12
November
2020
9
August
2021
Exercise
price
$1.25
$1.25
$1.25
$0.62
$1.25
$1.50
$1.25
$1.25
$0.77
$0.1665
2017
Number
under
option
-‐
400,000
-‐
-‐
400,000
480,000
180,000
2,334,000
650,000
3,080,000
2,200,000
9,724,000
2016
Number
Under
option
2,800,000
600,000
156,000
400,000
400,000
480,000
180,000
2,634,000
650,000
3,920,000
-‐
12,220,000
The
weighted
average
remaining
life
of
the
options
issued
under
the
ESOP
at
30
June
2017
was
2
years
and
10
months
(2016:
2
years
and
7
months).
Page
|
55
BENITEC
BIOPHARMA
LIMITED
Notes
to
the
financial
statements
30
June
2017
continued
Note
29.
Share-‐based
payments
continued
For
the
options
granted
during
the
year,
the
valuation
model
inputs
used
to
determine
the
fair
value
at
the
grant
date
are
as
follows:
Grant
date
Expiry
date
Share
price
Exercise
Expected
*
Dividend
Risk-‐free
Fair
value
10/8/2016
10/8/2021
$0.115
$0.1665
91.52%
-‐%
at
grant
date
price
volatility
yield
interest
rate
at
grant
date
$0.0962
2.4
%
Total
expenses
arising
from
share-‐based
payment
transactions
recognised
during
the
period
as
part
of
employee
benefit
expense
were
$0.386m
(2016:
$1.745m).
*
expected
volatility
was
determined
with
reference
to
the
Benitec
share
price
based
on
historical
volatility.
Page
|
56
BENITEC
BIOPHARMA
LIMITED
Directors
Declaration
30
June
2017
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
2017
and
of
its
performance
for
the
financial
year
ended
on
that
date;
and
●
there
are
reasonable
grounds
to
believe
that
the
Company
will
be
able
to
pay
its
debts
as
and
when
they
become
due
and
payable.
The
directors
have
been
given
the
declarations
required
by
section
295A
of
the
Corporations
Act
2001.
Signed
in
accordance
with
a
resolution
of
directors
made
pursuant
to
section
295(5)(a)
of
the
Corporations
Act
2001.
On
behalf
of
the
directors
______________________________
Peter
Francis
Chairman
29
August
2017
Sydney
Page
|
57
Level 17, 383 Kent Street
Sydney NSW 2000
Correspondence to:
Locked Bag Q800
QVB Post Office
Sydney NSW 1230
T +61 2 8297 2400
F +61 2 9299 4445
E info.nsw@au.gt.com
W www.grantthornton.com.au
Independent Auditor’s Report
to the Members of Benitec Biopharma Limited
Report on the audit of the financial report
Opinion
We have audited the financial report of Benitec Biopharma Limited (the Company) and its
subsidiaries (the Group), which comprises the consolidated statement of financial position as at 30
June 2017, the consolidated statement of profit or loss and other comprehensive income,
consolidated statement of changes in equity and consolidated statement of cash flows for the year
then ended, and notes to the consolidated financial statements, including a summary of significant
accounting policies, and the directors’ declaration.
In our opinion, the accompanying financial report of the Group, is in accordance with the
Corporations Act 2001, including:
a Giving a true and fair view of the Group’s financial position as at 30 June 2017 and of its
performance for the year ended on that date; and
b Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the
Financial Report section of our report. We are independent of the Group in accordance with the
independence requirements of the Corporations Act 2001 and the ethical requirements of the
Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional
Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have
also fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the
context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm
is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and
are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its
Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation.
Page | 58
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.
Key audit matter
How our audit addressed the key audit matter
Our procedures included, amongst others:
comparing the nature of the R&D expenditure
included in the current year estimate to the prior
year claim;
utilising an internal R&D expert to review the
expenditure methodology employed by
management for consistency with the R&D tax
offset rules;
comparing the eligible expenditure used in the
receivable calculation to the expenditure recorded
in the general ledger;
inspecting copies of relevant correspondence with
AusIndustry and the ATO related to historic claims;
and
assessing the adequacy of the Group’s related
disclosures within the financial report.
Our procedures included, amongst others:
assessing the planned levels of operating and
capital expenditures for consistency of
relationships and trends to the Group’s historical
results, results since year end, and our
understanding of the business, industry and
economic conditions of the Group;
assessing the ability of the group to curtail
expenditure as required in order to manage cash
outflows within the existing levels of available
funding;
performing sensitivity analyses on the forecast
cash flows;
agreeing year end cash balances to third party
independent confirmations received to gain
comfort around the opening balances used in the
cash flow forecast; and
assessing the adequacy of the Group’s related
disclosures within the financial report.
Recognition of R&D refundable tax offset (Note 5)
Under the research and development (R&D) tax
incentive scheme, the Company receives a 43.5%
refundable tax offset (2016: 45%) of eligible
expenditure if its turnover is less than $20 million per
annum. An R&D plan is filed with AusIndustry in the
following financial year and, based on this filing, the
Group receives the incentive in cash. Management
performed a detailed review of the Group’s total R&D
expenditure to estimate the refundable tax offset
receivable under the R&D tax incentive legislation.
This area is a key audit matter due to the size of the
accrual and because there is a degree of judgement
and interpretation of the R&D tax legislation required
by management to assess the eligibility of the R&D
expenditure under the scheme.
Going concern (Note 1)
The Group’s use of the going concern basis of
accounting and the associated extent of uncertainty
is a key audit matter due to the high level of judgment
required by us in evaluating the Group’s assessment
of going concern.
The Directors have determined that the use of the
going concern basis of accounting is appropriate in
preparing the financial report. Their assessment of
going concern was based on cash flow projections.
The preparation of these projections incorporated a
number of assumptions and judgments, and the
Directors have concluded that the range of possible
outcomes considered in arriving at this judgment
does not give rise to a material uncertainty casting
significant doubt on the Group’s ability to continue as
a going concern.
We critically assessed the levels of uncertainty, as it
related to the Group’s ability to continue as a going
concern, within these assumptions and judgments,
focusing on the following:
• The Group’s planned levels of expenditure on
research and development and clinical trials to meet
current program targets and the ability of the Group
to manage cash outflows within available funding.
• The nature and feasibility of planned methods the
Group has to meet its financing commitments.
In assessing this key audit matter, we involved senior
audit team members who understand the Group’s
business, industry and the economic environment it
operates in.
Page | 59
Information Other than the Financial Report and Auditor’s Report Thereon
The Directors are responsible for the other information. The other information comprises the
information included in the Group’s annual report for the year ended 30 June 2017, but does not
include the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The Directors of the Company are responsible for the preparation of the financial report that gives
a true and fair view in accordance with Australian Accounting Standards and the Corporations Act
2001 and for such internal control as the Directors determine is necessary to enable the
preparation of the financial report that gives a true and fair view and is free from material
misstatement, whether due to fraud or error.
In preparing the financial report, the Directors are responsible for assessing the Group’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless the Directors either intend to liquidate the Group or
to cease operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with the Australian Auditing Standards will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website at:
http://www.auasb.gov.au/auditors_responsibilities/ar1.pdf. This description forms part of our
auditor’s report.
Page | 60
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 15 to 22 of the directors’ report for
the year ended 30 June 2017.
In our opinion, the Remuneration Report of Benitec Biopharma Limited, for the year ended 30 June
2017, 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.
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
L M Worsley
Partner - Audit & Assurance
Sydney, 29 August 2017
Page | 61
BENITEC
BIOPHARMA
LIMITED
Corporate
Directory
30
June
2017
Directors
Mr
Peter
Francis
-‐
Non-‐Executive
Chairman
Dr
Jerel
A
Banks
-‐
Non-‐Executive
Director
Ms
Megan
Boston
-‐
Non-‐Executive
Director
Mr
Kevin
Buchi
-‐
Non-‐Executive
Director
Dr
John
Chiplin
-‐
Non-‐Executive
Director
CEO
Mr
Greg
West
Company
Secretary
Mr
Greg
West
Notice
of
annual
general
meeting
The
details
of
the
annual
general
meeting
of
Benitec
Biopharma
Limited
are:
Level
17
383
Kent
Street
Sydney,
NSW
2000
Wednesday
8
November
2017
at
10:00
am
(AEST)
Registered
office
Share
register
Auditor
Bankers
Suite
1201
99
Mount
Street
North
Sydney,
NSW
2060
Head
office
telephone:
+61
2
9555
6986
Computershare
Investor
Services
Pty
Limited
Yarra
Falls
452
Johnston
Street
Abbotsford,
VIC
3067
Shareholders
Enquiries:
1300
787
272
Grant
Thornton
Audit
Pty
Ltd
Level
17
383
Kent
Street
Sydney,
NSW
2000
Westpac
Banking
Corporation
274
Darling
Street
Balmain,
NSW
2041
Stock
exchange
listing
Benitec
Biopharma
Limited
shares
are
listed
on
the
Australian
Securities
Exchange
in
Australia
(ASX:
BLT)
Benitec
Biopharma
Limited
shares
are
listed
on
the
NASDAQ
Global
Select
Market
in
United
States
(NASDAQ:
BNTC;
NASDAQ:
BNTCW)
Website
www.benitec.com
Page
|
62
BENITEC
BIOPHARMA
LIMITED
Shareholder
information
30
June
2017
The
shareholder
information
set
out
below
was
applicable
as
at
31st
July
2017.
Distribution
of
equitable
securities
Analysis
of
number
of
equitable
security
holders
by
size
of
holding:
1
to
1,000
1,001
to
5,000
5,001
to
10,000
10,001
to
100,000
100,001
and
over
Total
Shareholders
Number
of
holders
of
ordinary
shares
815
1,263
522
917
171
3,688
Holding
less
than
a
marketable
parcel
1,692
Equity
security
holders
Twenty
largest
quoted
equity
security
holders
The
names
of
the
twenty
largest
security
holders
of
quoted
equity
securities
are
listed
below:
HSBC
CUSTODY
NOMINEES
(AUSTRALIA)
LIMITED
MERRILL
LYNCH
(AUSTRALIA)
NOMINEES
PTY
LIMITED
NANT
CAPITAL
LLC
J
P
MORGAN
NOMINEES
AUSTRALIA
LIMITED
DALIT
PTY
LTD
CITICORP
NOMINEES
PTY
LIMITED
LONCETA
PTY
LTD
CSIRO
MRS
ALANKARAGE
SRIYANI
KARUNASENA
MJGD
NOMINEES
PTY
LTD
DR
RUSSELL
KAY
HANCOCK
TELOSAMA
SUPER
PTY
LTD
BNP
PARIBAS
NOMINEES
PTY
LTD
MR
PAUL
LEONARD
GRIMSHAW
+
MR
DAYNE
PAUL
GRIMSHAW
TIGCORP
NOMINEES
PTY
LTD
J
KEVIN
BUCHI
SAO
HOLDINGS
PTY
LTD
TRIUMPH
HOLDINGS
(WA)
PTY
LTD
DR
WARNAKULASOORIYA
KARUNASENA
+
MRS
ALANKARAGE
KARUNASENA
MR
GORDON
LONGLAND
+
MS
THERESE
RUFI
Ordinary
Shares
held
35,879,481
30,544,062
29,305,819
12,437,667
5,339,848
4,114,448
2,000,000
1,924,658
1,510,000
1,465,860
1,000,000
1,000,000
919,359
893,657
872,892
861,539
798,182
743,600
650,000
642,719
%
of
total
shares
issued
17.49
14.89
14.29
6.06
2.60
2.01
0.97
0.94
0.74
0.71
0.49
0.49
0.45
0.44
0.43
0.42
0.39
0.36
0.32
0.31
132,903,791
64.79
Page
|
63
BENITEC
BIOPHARMA
LIMITED
Shareholder
information
30
June
2017
Unquoted
equity
securities
Grant
date
16
November
2012
**
10
November
2013
*
22
August
2013
**
28
February
2014
***
15
May
2014
**
17
December
2014
**
6
May
2015
**
20
August
2015
****
12
November
2015*
9
August
2016**
17
August
2017**
Expiry
date
16
November
2017
18
May
2018
22
August
2018
28
February
2019
15
May
2019
17
December
2019
6
May
2020
21
August
2020
12
November
2020
9
August
2021
16
August
2022
Substantial
holders
Substantial
holders
in
the
Company
are
set
out
below:
Nant
Capital
LLC
Voting
rights
The
voting
rights
attached
to
ordinary
shares
are
set
out
below:
Exercise
price
Number
under
option
$1.250
$0.620
$1.250
$1.260
$1.500
$1.250
$1.250
$USD
0.275
$0.77
$0.1665
$0.196
400,000
400,000
480,000
13,246,203
180,000
2,334,000
650,000
11,498,000
3,080,000
2,200,000
9,450,000
43,918,203
Ordinary
Shares
held
%
of
total
shares
issued
58,611,638
28.57
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.
Page
|
64
BENITEC
BIOPHARMA LTD
ABN 64 068 943 662
Suite 1201, 99 Mount Street
North Sydney, NSW 2060 Australia
Tel: +61 (0) 2 9555 6986
Email: info@benitec.com
www.benitec.com