Biotron Limited Annual Report 2009

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FY2009 Annual Report · Biotron Limited

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Level 2 • 66 Hunter Street • Sydney NSW 2000 • Australia

Annual Report 2009

Biotron Limited ABn 60 086 399 144

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11/9/09 6:05:51 PM

Contents

operating and Financial review

statement of Corporate Governance

directors’ report

income statement

statement of recognised income and expense

Balance sheet

statement of Cash Flows

notes to the Financial statements

directors’ declaration

independent Audit report

Additional stock exchange information

Corporate directory

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OPERATINg and Financial Review

The period under review has seen
significant advances on clinical progression
of Biotron’s antiviral drug development
program, with continued focus on clinical
development of the Company’s lead drug,
BIT225, in its HIV and Hepatitis C virus
(HCV) programs.

Significant events achieved in this financial
year include:

Commencement of a Phase Ib/IIa
clinical trial of Biotron’s lead drug,
BIT225, in HCV infected subjects. This
marked a major milestone for the
Company.

Demonstration that BIT225 is highly
synergistic when combined with a new
class of HCV antiviral agents known as
NS5B polymerase inhibitors.

Presentation of data from the
Company’s HIV and HCV programs
at several international scientific
conferences.

Initiation and successful completion of
a Share Purchase Plan, raising $807,500
for further clinical development of
BIT225.

Since the end of the financial year under
review, Biotron has announced the
completion of the clinical phase of the
Phase Ib/IIa trial, with successful dosing of
all subjects. Data from the trial is currently
being collated, analysed and reviewed to
determine if it meets primary endpoint.

Clinical Development of BIT225

BIT225 is an investigational, orally-
administered, novel antiviral compound
in development by Biotron for treatment
of HIV and HCV infections. The successful
completion of the first human trial of
BIT225 during the second half of 2007
was a major value-adding milestone for
Biotron. This trial followed on from the
completion of a comprehensive program of

preclinical safety studies, and demonstrated
the safety of the drug in humans and its
suitability for progression into trials in
patient populations. The completed Phase I
clinical trial in healthy volunteers supported
the continued development of BIT225
into proof-of-concept human trials. The
trial data can be used to progress BIT225
in both HCV and HIV patient populations,
which significantly reduces the costs and
timelines of Biotron’s clinical development
program.

In the year under review, Biotron
commenced a Phase Ib/IIa trial of BIT225 in
HCV infected patients, after receipt of the
necessary ethics and regulatory approvals.
The commencement of this trial marked
another major milestone for the Company.
The trial, code-named BIT225-003, was run
over the two sites in Australia. The trial is
a placebo-controlled, randomised study of
the safety, pharmacokinetics and antiviral
activity of BIT225 in patients with HCV
infection. The primary objective is to assess
the safety and tolerability of BIT225. The
secondary objectives are to assess the
pharmacokinetics of BIT225 as well as to
assess the antiviral efficacy of BIT225 in
these patients.

Eighteen patients were randomly assigned
to receive one of two dose levels of BIT225
or placebo. The use of two trial sites,
based in Sydney and Brisbane, was aimed
at maximising the recruitment rate for
the trial. Patient recruitment was initially
slower than expected, necessitating minor
modifications to the trial design which were
made with ethics and regulatory approvals.
These resulted in a significant improvement
in patient recruitment rates.

Since the end of the financial year, Biotron
has announced the completion of the
clinical phase of the Phase Ib/IIa trial, with
successful dosing of all subjects. Data
from the trial is currently being collated,
analysed and reviewed to determine if it

meets primary endpoint, and it is expected
that this review will be completed during
September 2009.

BIT225 represents a first-in-class drug for
treatment of HCV, targeting the p7 protein
of HCV. It is estimated that in the USA
alone, some 4 million people have been
infected with Hepatitis C with 2.7 million
suffering from chronic infection.

Worldwide, 170 million people are infected.
HCV causes inflammation of the liver,
which may lead to fibrosis and cirrhosis,
liver cancer and, ultimately, liver failure.
Existing drugs for HCV have limited
effectiveness and toxicity issues, leaving
a significant need for new therapies. The
worldwide market is currently almost
US$3.0 billion, but is estimated that this
market will expand to over US$10.0 billion
as safe, effective therapies enter the market.

Studies performed by Southern Research
Institute, Maryland, USA, during the year
under review, using a surrogate cell culture
system, demonstrated that Biotron’s
lead antiviral drug, BIT225, is synergistic
when combined with a particular class of
antiviral drug. These drugs inhibit the RNA-
dependent RNA polymerase of HCV (also
known as NS5B). NS5B inhibitors have been
the focus of several international research
and development programs and a number
are in early clinical development. The
finding is significant as there is a recognised
need to develop antiviral drugs that work
in combination to attack HCV. The finding
that BIT225 works in combination with
NS5B inhibitors to enhance the virus
killing ability of both BIT225 and the NS5B
inhibitors further improves the standing of
BIT225 within this field.

These results extend the previously
reported finding that BIT225 is synergistic
with the current standard of care treatment
for HCV (interferon and ribavirin). The
results of this latest research demonstrate

Biotron Limited Annual Report 2009 I

OpeRAting And FinAnciAl Review

that higher levels of virus death could be
effected using significantly lower levels
of both drugs than if either is used alone.
The major practical benefit of synergism
between two anti-viral drugs is that,
for therapeutic purposes, each drug
would remain effective at lower plasma
concentrations than if the combined effect
was merely additive. This has the potential
to decrease the risk of adverse drug side
effects, and the potential for generation
of drug resistant virus strains, as drug
levels in the plasma fall below effective
concentrations, is reduced.

The use of BIT225 in combination with
either the current standard of care
treatment, or with NS5B inhibitors, holds
exciting potential therapeutic treatment of
human HCV infections.

BIT225 also represents a novel, first in class
approach to the treatment of HIV. BIT225
specifically targets HIV in reservoir cells
and represents an opportunity to attack
HIV at its source in the body. Current HIV
therapies have little or no effect on HIV in
the underlying reservoir of infected cells
where the virus hides from the immune
system. The market for HIV is very large,
with the US market alone for HIV worth
over US$3.3 billion per annum. Biotron is
currently progressing protocols and other
documentation through the necessary
ethics and regulatory processes, with the
aim of progressing BIT225 into a Phase
Ib/IIa trial in HIV-positive patients when
funding permits.

These trials in HIV and HCV infected
patients are critical steps in the Company’s
development. Demonstration that BIT225
can attack these viruses in patients will be
a major advance in terms of Company and
technology valuations. The Company is
focused on achieving a successful outcome,
and has been progressing discussions with
potential pharmaceutical companies in
anticipation of finalising a deal once these

Biotron Limited Annual Report 2009

trials have been completed. The proposed
trials are designed to benefit shareholders
through significantly increasing the value
of Biotron in the market and to its future
pharmaceutical company partners.

Other Viral Programs

The Company has an impressive portfolio
of clinical and preclinical antiviral programs
developing drugs targeting HCV, HIV,
Dengue virus and Influenza virus. At present,
focus is on development of the HCV and
HIV programs into trials in infected patient
populations, and additional resources will
be committed to these additional programs
once the more advanced programs have
been successfully commercialised or as
resources become available.

The level of interest by the international
community in Biotron’s antiviral programs
was reflected by the selection of Biotron
to participate in prestigious international
scientific conferences over the last
12 months. In October 2008, Biotron was
selected to present at the 6th Australasian
Viral Hepatitis conference in Brisbane,
and Biotron scientists were selected to
present data at the biannual HIV DART
conference in the USA in December 2008
and at the annual Conference of Retroviral
and Opportunistic Infections (CROI) in
Montreal in February 2009. Recently, a
paper on preclinical efficacy of BIT225 was
presented to an international conference at
the 2nd World Summit of Antivirals held in
Beijing, China, by Biotron’s collaborators at
Southern Research Institute, Maryland, USA.
Presentation at these meetings provided
an excellent opportunity to further discuss
the Company’s technologies with potential
pharmaceutical company partners.

During the year, ongoing discussions were
held with potential partners regarding the
Virion technology. Whilst keen to secure a
partner to take the Company’s compounds
through into clinical development, Biotron

can significantly increase the value of the
technology by undertaking Phase I and II
clinical trials before forming an alliance.
This may translate into much higher returns
to the Company in the form of upfront
payments as well as increased milestone
and royalty payments in the future.

Patents

Biotron is focused on progressing patents
related to its antiviral programs through
the international patenting process.
The Company recognises that the key
to establishment of partnerships is the
expansion and continued strengthening of
Biotron’s intellectual property (IP) portfolio.
Strong, defensible, international patents are
essential to attract partners and to ensure
a competitive advantage for the Company’s
products in the marketplace. Biotron
continues to build a strong wall of patents
around its IP to maximise the value of the
technologies and to ensure its competitive
position.

A summary of Biotron’s patent portfolio is
set out below:

TITLE

WO0021538

Method of
modulating ion
channel functional
activity.

STATUS

granted in
Australia, New
Zealand, USA and
China.

Under examination
elsewhere.

WO9813514

Method of
determining ion
channel activity of
a substance.

granted in
Australia,
Europe (selected
countries), Japan
and USA.

Under examination
elsewhere.

TITLE

STATUS

granted in India,
Singapore and
South Africa.

Under examination
elsewhere.

Entered into
national phase.

WO04112687

Antiviral
compounds and
methods.

WO6135978

Antiviral
compounds and
methods.

PCT/
AU2008/001130

PCT filed in
August 2008.

Hepatitis
C antiviral
compositions and
methods

Capital Raising

In the first quarter of 2009, Biotron
initiated and completed capital raising to
eligible shareholders via a Share Purchase
Plan (SPP) and placement, raising $807,500
to fund the completion of the Phase Ib/IIa
HCV clinical trial and ensure the Company
is in a position to complete negotiation of a
licensing deal.

At the time of the last capital raising in
late 2007, Biotron anticipated leveraging
shareholder funds, as it had done so
before, by accessing matching funding for

the Phase Ib/IIa trial through the Federal
government’s Commercial Ready grant
program. Regrettably, and without any
indication to do so, the Federal government
cancelled the Commercial Ready grant
program in the May 2008 Federal budget,
right at the time that Biotron was finalising
trial protocols. Biotron had not anticipated
having to fully fund the trial, so the
cancellation of the grant program has had a
significant adverse impact on the financial
position of the Company.

The cancellation of the Commercial Ready
grant program caused the Company to
hold the commencement of a second
Phase Ib/IIa clinical trial for the treatment
of HIV and focus the Company’s financial
resources on the HCV clinical trial. The HIV
clinical trial, which has finalised protocols
ready for submission for ethical and
regulatory approvals, could be commenced
quickly with sufficient financial resources.

The Company is focused on achieving a
successful outcome from the HCV trial,
and has been progressing discussions
with potential pharmaceutical companies.
The trial has been designed to benefit
shareholders through significantly
increasing the value of Biotron in the
market and to its future pharmaceutical
company partners.

The Directors would like to thank all those
shareholders who supported the Company
by participating in this capital raising.

On behalf of the Board we would like
to thank the dedicated Biotron staff for
their commitment and efforts during the
year. Biotron is poised to achieve the
outcome that we have all been working
towards – demonstration that its antiviral
drug development program can produce
new, novel drugs which can attack virus
infections in humans, resulting in significant
clinical benefit to patients, and generating
major financial benefits to our shareholders.

We look forward to the next year with
confidence.

Michael J. Hoy

Chairman

Michelle Miller
Managing Director

Biotron Limited Annual Report 2009 I

Statement of corporate governance

This statement outlines the main Corporate
governance practices that were in place
throughout the financial year, which
comply with the Australian Stock Exchange
(‘ASX’) Corporate governance Council
recommendations, unless otherwise stated.

Board of Directors

The board of directors is responsible for
the overall corporate governance of the
Company including its strategic direction,
setting remuneration, establishing goals
for management and monitoring the
achievement of these goals and ensuring
the integrity of internal control and
management information systems. It is also
responsible for approving and monitoring
financial and other reporting.

The composition of the board has been
determined on the basis of providing the
Company with the benefit of a broad range
of technical, administrative and financial
skills, combined with an appropriate level of
experience at a senior corporate level. The
names and further information regarding
the skills, experience, qualifications and
relevant expertise of the directors are set
out in the Directors’ Report. The board is
composed of a minimum of three directors.

The composition of the board is monitored
constantly to ensure that it provides the
Company with the appropriate levels of
both expertise and experience. The board
comprises a majority of independent,
non-executive directors including the
Chairperson. The independence of directors
is based on their capacity to put the
best interests of the Company and its
shareholders ahead of all other interests.

When a board vacancy exists, through
whatever cause, or where it is considered
that the board would benefit from the
services of a new director with particular
skills, the board identifies a panel of
candidates with appropriate expertise and
experience. A selection procedure is then

Biotron Limited Annual Report 2009

completed and the board appoints the
most suitable candidate who must stand
for election at the next general meeting of
shareholders.

Directors, other than the Managing
Director, are subject to re-election by the
shareholders at least every three years.

Having regard to the current membership
of the board and the size, organisational
complexity and scope of operations of
the entity, a Nomination Committee, a
Remuneration Committee and an Audit
Committee have not been established.

Each director has the right to seek
independent professional advice at the
Company’s expense. Prior approval of the
Chairman is required, but such approval is
not unreasonably withheld. A copy of the
advice received by the director is made
available to all other members of the board.

In the event that a potential conflict of
interest may arise, involved directors must
withdraw from all deliberations concerning
the matter.

Remuneration

The remuneration of the directors is
determined by the board as a whole, with
the director to whom a particular decision
relates being absent from the meeting
during the time that the remuneration level
is discussed and decided upon.

For details on the amount of remuneration
and any amount of equity based executive
remuneration payment for each director,
refer to the Key Management Personnel
note to the financial statements and the
Remuneration Report in the Directors’
Report.

Internal Controls

The board of directors acknowledges that
it is responsible for the overall internal
control framework, but recognises that no

cost effective internal control system will
preclude all errors and irregularities. The
system of internal control adopted by the
Company seeks to provide an appropriate
division of responsibility and careful
selection and training of personnel relative
to the level of activities and size of the
Company.

The full board takes responsibility for
reviewing financial reporting procedures,
internal controls and the performance of
the financial management. Selected internal
control mechanisms employed to support
the business include:

Investment appraisal – the Company
has documented guidelines for capital
expenditure and investment appraisals.
These include annual budgets,
expenditure review procedures and
appropriate levels of authority.

Business planning, budgeting and
reporting – a comprehensive business
planning process includes evaluation of
strategies, objectives, and risks resulting
in an annual budget approved by the
board. Monthly actual performance is
reported against budget and revised
forecasts for the year are prepared
regularly.

Quality and integrity of employees
– there are clearly defined
accountabilities, performance measures,
and reinforcement of values and ethics
by management.

The CEO and CFO state in writing to
the board that the Company’s financial
statements present a true and fair view,
in all material respects, of the Company’s
financial condition and operational results
and are in accordance with relevant
accounting standards.

External Auditors

Board nominees review the performance
of the external auditors and meet with
them during the half yearly review and
annual audit to discuss any issues that
have arisen with respect to accounting
policies, any significant operational issues
and the level of proposed audit fees. The
auditor is requested to attend the Annual
general Meeting and be available to answer
shareholder questions about the conduct of
the audit and the preparation and content
of the auditor’s report.

KPMg, the Company’s auditors, were
appointed on 20 November 2001.

Ethical Standards

All directors, managers and employees are
expected to act with the utmost integrity
and objectivity, endeavouring at all times
to enhance the performance and reputation
of the Company. Every employee has direct
access to a director to whom they may
refer any ethical issues that may arise from
their employment.

Directors, officers and employees are
permitted to trade in the Company’s
securities only in accordance with the
provisions of the Corporations Act and ASX
Listing Rules. The directors are under an
obligation to report any dealings by them
in the Company’s securities.

The Role of Shareholders

The board ensures that the shareholders
are informed of all major developments
affecting the Company by the following
means:

Distribution of the annual report is
made available to all shareholders
containing relevant information about
the operations of the Company during
the year in addition to disclosures
required by the Corporations Act 2001.

Lodgement of quarterly reports with
the ASX which show summarised
financial information for the quarter.
Copies of these reports are available to
shareholders on request.

Lodgement of the half yearly
report with the ASX which contains
summarised and audit reviewed
financial information. Copies of half
yearly financial statements prepared
in accordance with the Corporations
Act are available to any shareholder on
request.

Lodgement of the annual report with
the ASX which contains full audited
financial information prepared in
accordance with the Corporations Act.
Distribution of the annual report is
made available to all shareholders.

Announcements to the ASX concerning
any significant development in the
Company’s operations, financing and
administration. All announcements are
immediately available to the general
public.

Disclosure of all major announcements
to the ASX on the Company’s website.

The Annual general Meeting is the
main opportunity for the shareholders
to hear the Managing Director and
Chairman provide updates on the
Company’s performance, ask questions
of the board and to express views and
vote on various matters of business on
the agenda.

The shareholders are responsible for voting
on the appointment of directors.

Risk Management

Due to the size of the Company, the
number of officers and employees and
the nature of the Company’s business, a
formal risk management policy and internal
compliance and control system has not

been implemented. The chief executive
officer and chief financial officer declare,
in writing, to the board that the system of
risk management and internal compliance
and control which implements the policies
adopted by the board has been assessed
and found to be operating efficiently and
effectively in all material respects.

Each director reviews the business risks
affecting his particular area of expertise
annually and reports to the board. The board
then determines the appropriate actions
to eliminate or minimise the identified
business risks. The full board oversees the
establishment, implementation and ongoing
review of the Company’s risk management
and internal control system. The internal
control system covers financial, operational
and compliance risks.

Recommendations made by external
auditors and other external advisers are
investigated by the board and, where
necessary, appropriate action is taken to
ensure that the Company has the internal
control environment to manage the key
risks identified. Ways of enhancing existing
risk management strategies, including
segregation of duties, employment
and training of suitably qualified and
experienced personnel are investigated by
the board.

Performance Evaluation of the Board
and Key Executives

Due to the size of the Company, the
number of officers and employees and
the nature of the Company’s business,
the board has adopted an informal and
continuous performance evaluation process
of the directors and key executives. The
Company has not established formal
performance review measures for the board
or key executives nor has it established a
nomination committee.

Biotron Limited Annual Report 2009 I

Directors’ Report

The directors present their report together
with the financial report of Biotron Limited
(‘the Company’) for the year ended 30 June
2009 and the auditor’s report thereon.

Directors

The names and particulars of the directors
of the Company at any time during or since
the end of the financial year are:

Mr Michael J. Hoy
Independent and Non-Executive
Chairman

Mr Hoy has more than 30 years’ corporate
experience in Australia, the United
Kingdom, USA and Asia. He is Chairman of
CityPrint Holdings Pty Limited, Chairman of
Tellesso Technologies Limited and a former
director of John Fairfax Holdings Limited
and FXF Trust.

He has been a director since 7 February
2000 and Chairman since 16 March 2000.

Dr Michelle Miller, BSc, MSc, PhD,
GCertAppFin (Finsia)
Managing Director

Dr Miller has worked for over 20 years in
the bioscience industry, with extensive
experience in managing commercial
bioscience research. She completed her
PhD in the Faculty of Medicine at Sydney
University investigating molecular models
of cancer development. Her experience
includes a number of years at Johnson
and Johnson developing anti-HIV gene
therapeutics through preclinical research
to clinical trials. She has experience in
early-stage start-ups from time spent
as Investment Manager with a specialist
bioscience venture capital fund.

She was appointed as Managing Director
on 21 June 2002.

Biotron Limited Annual Report 2009

Dr Michael S. Hirshorn, MBA, MB, BS
Independent and Non-Executive
Director

Dr Hirshorn has 30 years experience in
founding, building, managing and investing
in technology companies. He played a
major role in all commercial aspects of
Cochlear Limited’s development, was a
founding director of Resmed Inc., and
Chief Executive Marketing for
Polartechnics Limited.

He has over eight years of private equity
experience, raising a fund and investing
and developing companies. He has served
on numerous government advisory
committees, including the Start IT and
T Committee, the Start grants Biological
Sciences Committee of the Department
of Industry, Science and Resources. He is
currently a director of Dynamic Hearing
and TgR BioSciences.

Dr Hirshorn was appointed as a director
on 16 March 2000.

Mr Bruce Hundertmark
Independent and Non-Executive
Director

Mr Hundertmark is an independent
businessman and company director with a
wide range of experience in diverse business
operations. He has specialised in recent
years in high technology based company
start-up operations and in promoting the
formation of venture capital companies
including News Datacom Research Limited
in Israel, News Datacom Limited in Hong
Kong and both PT Indo Bio Products and PT
Indo Bio Fuels in Indonesia.

He has been a director of numerous private
and publicly listed companies including
News International PLC, Sky Television
PLC, Prudential Cornhill Insurance Limited,
Harris Scarfe Limited, Bernkastel Wines
Limited, Codan Limited, Samic Limited
and Investment & Merchant Finance
Corporation Limited.

Mr Hundertmark was appointed as a
director on 16 March 2000.

Mr Peter G. Scott
Non-Executive Director

Mr Scott is a founding director of Biotron
Limited with more than 30 years of
commercial and entrepreneurial experience
in Australia.

He is a director of Scott’s Acorn Pty Ltd
and was formerly Chairman and Managing
Director of Scottcom Pty Ltd and Managing
Director of ICAM Pty Ltd, audio visual and
multimedia companies.

Mr Scott has been a director since
23 February 1999.

Peter J. Nightingale
Company Secretary

Mr Nightingale graduated with a Bachelor
of Economics degree from the University of
Sydney and is a member of the Institute of
Chartered Accountants in Australia. He has
worked as a chartered accountant in both
Australia and the USA.

As a director or company secretary
Mr Nightingale has, for the past 22 years,
been responsible for the financial control,
administration, secretarial and in-house
legal functions of a number of private
and public listed companies in Australia,
the USA and Europe including Pangea
Resources Limited, Timberline Minerals Inc.,
Perseverance Corporation Limited, Valdora
Minerals N.L., ETT Limited, Bolnisi gold NL
and Palmarejo Silver and gold Corporation.
Mr Nightingale is currently a director of
Cockatoo Coal Limited and Planet gas
Limited.

Mr Nightingale has been company
secretary since 23 February 1999.

Directors’ Meetings

The number of directors’ meetings held and number of meetings attended by each of the directors of the Company, while they were a
director, during the year are:

No. of Meetings Held No. of Meetings Attended

Michael J. Hoy

Michelle Miller

Michael S. Hirshorn

Bruce Hundertmark

Peter g. Scott

Directors’ Interests

At the date of this report, the beneficial interests of each director of the Company in the issued share capital of the Company and options,
each exercisable to acquire one fully paid ordinary share of the Company are:

Michael J. Hoy

Michelle Miller

Michael S. Hirshorn

Bruce Hundertmark

Peter g. Scott

Fully Paid Ordinary Shares

1,408,214

9,014,000

Options

500,000

200,000

Option Terms
(Exercise Price and Term)

$0.35 at any time up to 30 September 2010

$0.40 at any time from 30 September 2006 up to
30 September 2006 up to 30 September 2010

$0.45 at any time from 30 September 2007 up to
30 September 2010

$0.35 at any time up to 30 September 2010

Biotron Limited Annual Report 2009 I

diRectORs’ RepORt

Option Holdings

The movement during the reporting period in the number of options over ordinary shares in the Company held directly, indirectly or
beneficially, by each specified director and executive, including their personally-related entities, is as follows:

Option holdings - 2009

Held at
1 July 2008

Granted as
remuneration

Expired

Held at
30 June 2009

Directors

Michael J. Hoy

Michelle Miller

Michael S. Hirshorn

Bruce Hundertmark

Peter g. Scott

500,000

1,500.000

200,000

Executives

Peter J. Nightingale

200,000

Option holdings - 2008

Directors

Michael J. Hoy

Michelle Miller

Michael S. Hirshorn

Bruce Hundertmark

Peter g. Scott

500,000

1,500,000

200,000

Executives

Peter J. Nightingale

200,000

Remuneration Report - Audited

Held at
1 July 2007

Granted as
remuneration

Expired

Held at
30 June 2008

Vested and
exercisable at
30 June 2009

500,000

1,500.000

200,000

Vested and
exercisable at
30 June 2008

500,000

1,500.000

200,000

500,000

1,500.000

200,000

500,000

1,500.000

200,000

The policy of remuneration of directors and senior executives is to ensure the remuneration package properly reflects the person’s duties
and responsibilities, and that remuneration is competitive in attracting, retaining and motivating people of the highest quality. The board is
responsible for reviewing its own performance. The non-executive directors are responsible for evaluating the performance of the executive
directors who, in turn, evaluate the performance of all other senior executives. The evaluation process is intended to assess the Company’s
business performance, whether long term strategic objectives are being achieved and the achievement of individual performance objectives.

Remuneration generally comprises salary and superannuation. Longer term incentives are able to be provided through the Company’s
Incentive Option Plan which acts to align the directors and senior executives’ actions with the interests of the shareholders. The remuneration
disclosed below represents the cost to the Company for the services provided under these arrangements.

8 I Biotron Limited Annual Report 2009

No directors or senior executives receive performance related remuneration. Options issued in prior periods as remuneration were subject to
service conditions due to the nature of the Company’s operations.

Details of director and senior executive remuneration and the nature and amount of each major element of the remuneration of each
director and senior executive of the Company are:

Year

Primary
Salary and Fees

Post-
Employment
Superannuation
Benefits

Equity
Compensation
Value of
Options

Directors

Non-executive

Michael J. Hoy
(Chairman)

Michael S. Hirshorn

Bruce Hundertmark

Peter g. Scott

Executive

Michelle Miller
(Managing Director)

Total, all specified
directors

Executives

Peter J. Nightingale
(Company Secretary)

Total, all specified
directors and
executives

2009

2008

2009

2008

2009

2008

2009

2008

2009

2008

2009

2008

2009

2008

2009

2008

55,046

60,000

27,523

30,000

27,523

30,000

5,000

200,000

315,092

325,000

75,000

390,092

400,000

4,954

5,400

2,477

2,700

2,477

2,700

25,000

27,700

18,000

52,908

56,500

52.908

56,500

2,403

Options
as a % of
Remuneration

Total

60,000

65,400

30,000

32,700

30,000

32,700

30,000

32,700

218,000

220,403

368,000

383,903

75,000

443,000

2,403

458,903

Biotron Limited Annual Report 2009 I 9

diRectORs’ RepORt

Options granted as compensation - Audited

Details of options that were granted as compensation to each key management person:

Director

Grant Date

Number of
options granted

Fair value
at grant date

Michelle Miller

14 October 2005

500,000

$24,016

Michelle Miller

14 October 2005

500,000

$21,114

Michelle Miller

14 October 2005

500,000

$18,701

Option Terms
(Exercise Price and Term)

$0.35 at any time up to
30 September 2010

$0.40 at any time from 30 September 2006
up to 30 September 2010

$0.45 at any time from 30 September 2007
up to 30 September 2010

The number of options that had vested as at 30 June 2009 is 1,500,000 (2008 – 1,500,000). There were nil options (2008 – 500,000) that
vested during the year ended 30 June 2009, and no options were granted during or subsequent to year end.

The fair value of the options at grant date was determined based on the Black-Scholes formula. The model inputs of the options issued, were
the Company’s share price of $0.17 at the grant date, a volatility factor of 50% based on historic share price performance and a risk free
interest rate of 5.25% based on the 10 year government bond rate.

Consequences of Performance on Shareholder Wealth - Audited
In considering the Company’s performance and benefits for shareholders wealth, the board have regard to the following indices in respect of
the current financial year and the previous four financial years.

2009

2008

2007

2006

2005

Net loss attributable to equity
holders of the parent

$1,776,099

$1,882,093

$3,234,004

$2,198,973

$1,883,575

Dividends paid

Change in share price

0.0 cents

(9.0) cents

4.5 cents

7.0 cents

(5.8) cents

The overall level of key management personnel’s compensation is assessed on the basis of market conditions, status of the Company’s
projects, and financial resources of the Company.

Service Contracts - Audited

There are no service contracts for the key management personnel.

Non-executive Directors - Audited

Total compensation for all non-executive directors is determined by the board based on market conditions.

Options

At the date of this report, unissued ordinary shares of the Company under option are:

Number of Options

Exercise Price

5,450,000

750,000

500,000

$0.35

$0.40

$0.45

Expiry Date

30 September 2010

The options do not entitle the holder to participate in any share issue of the Company or any other body corporate.

10 I Biotron Limited Annual Report 2009

Principal Activities

Events Subsequent to Balance Date

Non-audit Services

The principal activities of the Company
during the financial year were the funding
and management of intermediate and
applied biotechnology research and
development projects.

Financial Result and Review of
Operations

The operating loss of the Company for
the financial year after income tax was
$1,776,099 (2008 loss - $1,882,093).

A review of the Company’s operations for
the year is set out in the Operating and
Financial Review.

Impact of Legislation and Other
External Requirements

There were no changes in environmental or
other legislative requirements during the
year that have significantly impacted the
results or operations of the Company.

Dividends

The directors recommend that no dividend
be paid by the Company. No dividend has
been paid or declared since the end of the
previous financial year.

State of Affairs

In the opinion of the directors, there were
no significant changes in the state of affairs
of the Company that occurred during the
financial year under review.

Environmental Regulation

The Company’s operations are not subject
to significant environmental regulations
under Commonwealth or State legislation
in relation to its research projects.

There has not arisen in the interval between
the end of the financial year and the date
of this report any item, transaction or
event of a material and unusual nature
likely, in the opinion of the directors of
the Company, to affect significantly the
operations of the Company, the results of
those operations, or the state of affairs of
the Company, in future financial years.

Likely Developments

During the year ended 30 June 2009, the
Company continued to fund and manage
its research and development projects.
The success of these research projects,
which cannot be assessed on the same
fundamentals as trading and manufacturing
enterprises, will determine future likely
developments.

In the opinion of the directors, it would
prejudice the interests of the Company to
provide additional information, except as
reported in this Annual Report, relating to
likely developments in the operations of the
Company.

Indemnification of Officers and
Auditors

During or since the end of the financial
year, the Company has not indemnified or
made a relevant agreement to indemnify an
officer or auditor of the Company against
a liability incurred by such an officer or
auditor. In addition, the Company has not
paid or agreed to pay, a premium in respect
of a contract insuring against a liability
incurred by an officer or auditor.

During the year KPMg, the Company’s
auditor, has performed certain other
services in addition to their statutory
duties.

The board has considered the non-audit
services provided during the year by the
auditor and is satisfied that the provision
of those non-audit services during the year
by the auditor is compatible with, and did
not compromise, the auditor independence
requirements of the Corporations Act 2001
for the following reasons:

all non-audit services were subject to
the corporate governance procedures
adopted by the Company and have
been reviewed by the board to ensure
they do not impact the integrity and
objectivity of the auditor; and

the non-audit services provided do
not undermine the general principles
relating to auditor independence as
set out in APES 110 Code of Ethics
for Professional Accountants, as they
did not involve reviewing or auditing
the auditor’s own work, acting in
a management or decision making
capacity for the Company, acting as an
advocate for the Company or jointly
sharing risks and rewards.

A copy of the auditors’ independence
declaration as required under Section 307C
of the Corporations Act 2001 is included in
the Directors’ Report.

Biotron Limited Annual Report 2009 I 11

diRectORs’ RepORt

Details of the amounts paid to the auditor of the Company, KPMg, and its related practices for audit and non-audit services provided during
the year are set out below.

Statutory audit

- Audit and review of financial reports (KPMg Australia)

Services other than statutory audit

- Workers compensation review (KPMg Australia)

- grant audit (KPMg Australia)

Lead Auditor’s Independence Declaration

2009

26,240

1,750

2008

18,043

5,000

The Lead Auditor’s Independence Declaration is set out below and forms part of the Directors’ Report for the year ended 30 June 2009.

This report has been signed in accordance with a resolution of the directors and is dated 28 August 2009:

Michael J. Hoy
Chairman

Michelle Miller
Managing Director

Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001

To the Directors of Biotron Limited:

I declare that, to the best of my knowledge and belief, in relation to the audit for the financial year ended 30 June 2009, there have been:

(i) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit, and

(ii) no contraventions of any applicable code of professional conduct in relation to the audit.

KPMG

Brisbane 28 August 2009

W.E. Austin
Partner

12 I Biotron Limited Annual Report 2009

INCOME statement FOR tHe YeAR ended 30 JUne 2009

Other income

Administration and consultants’ expenses

Depreciation

Employee and director expenses

Direct research and development expenses

Rent and outgoings expenses

Legal expenses

Other expenses from ordinary activities

Operating loss before financing income

Interest income

Net financing income

Loss before tax

Income tax expense

Loss for the year

Basic loss per share attributable to ordinary equity shareholders

Diluted loss per share attributable to ordinary equity shareholders

Notes

2009

2008

5,000

431,409

(172,000)

(47,731)

(360,746)

(980,294)

(51,351)

(6,675)

(221,277)

(289,473)

(40,444)

(476,405)

(1,303,421)

(25,818)

(8,978)

(244,096)

(1,835,074)

(1,957,226)

58,975

75,133

(1,776,099)

(1,882,093)

(1,776,099)

(1,882,093)

(1.67) cents

(2.00) cents

Biotron Limited Annual Report 2009 I 13

STATEMENT of Recognised income and expense

FOR tHe YeAR ended 30 JUne 2009

Loss for the year

Total recognised income and expense for the year

Other movements in equity arising from transactions with owners as owners are set out in note 11.

2009

2008

(1,776,099)

(1,882,093)

14 I Biotron Limited Annual Report 2009

Balance sheet As At 30 JUne 2009

Current assets

Cash and cash equivalents

Trade and other receivables

Other

Total current assets

Non-current assets

Plant and equipment

Total non-current assets

Total assets

Current liabilities

Trade and other payables

Employee entitlements

Total current liabilities

Total liabilities

Net assets

Equity

Issued capital

Reserves

Accumulated losses

Total equity

Notes

2009

950,581

27,520

18,385

996,486

67,352

2008

2,063,596

59,483

29,160

2,152,239

115,083

1,063,838

2,267,322

136,397

85,935

222,332

841,506

317,627

106,318

423,945

1,843,377

19,920,593

19,146,365

359,608

(19,438,695)

(17,662,596)

841,506

1,843,377

Biotron Limited Annual Report 2009 I 15

STATEMENT of cash Flows FOR tHe YeAR ended 30 JUne 2009

Cash flows from operating activities

Cash receipts in the course of operations

Payments for research and development

Cash payments in the course of operations

Cash used in operations

Interest received

Notes

2009

2008

3,910

470,893

(1,081,839)

(1,219,196)

(883,264)

(937,163)

(1,961,193)

(1,685,466)

68,950

63,147

Net cash from operating activities

(1,892,243)

(1,622,319

Cash flows from investing activities

Proceeds on sale of intellectual property

Payments for plant and equipment

Net cash from/(used in) investing activities

Cash flows from financing activities

Proceeds from issue of shares

Cost of issue of shares

Net cash from financing activities

Net increase/(decrease) in cash and cash equivalents held

Cash and cash equivalents at the beginning of the financial year

Cash and cash equivalents at the end of the financial year

5,000

807,500

(33,272)

774,228

(1,113,015)

2,063,596

950,581

(62,261)

2,499,000

(129,546)

2,369,454

684,874

1,378,722

2,063,596

Biotron Limited Annual Report 2009

NOTES to the Financial statements FOR tHe YeAR ended 30 JUne 2009

1. REPORTING ENTITY

Biotron Limited (the ‘Company’) is a
company domiciled in Australia.

Basis of preparation

Statement of compliance

The financial report is a general purpose
financial report which has been prepared
in accordance with Australian Accounting
Standards (‘AASBs’) (including Australian
Interpretations) adopted by the Australian
Accounting Standards Board (‘AASB’) and
the Corporations Act 2001. The financial
report of the Company also complies with
International Financial Reporting Standards
(IFRSs) and interpretations adopted by the
International Accounting Standards Board
(IASB).

The financial report was authorised for
issue by the directors on 28 August 2009.

Basis of measurement

The financial statements have been
prepared on the historical cost basis.

Functional and presentation currency

These financial statements are presented in
Australian dollars, which is the Company’s
functional currency.

Use of estimates and judgements

The preparation of financial statements
requires management to make judgements,
estimates and assumptions that affect
the application of accounting policies and
the reported amounts of assets, liabilities,
income and expenses. Actual results may
differ from these estimates.

Estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the
period in which the estimate is revised and
in any future periods affected.

In particular, information about significant
areas of estimation uncertainty and critical
judgements in applying accounting policies
that have the most significant effect on
the amount recognised in the financial
statements are described in the following
note 1, going concern:

Going concern

The financial report has been prepared on
a going concern basis which contemplates
the realisation of assets and settlement of
liabilities in the ordinary course of business.

The Company has incurred significant
trading losses of $1,776,099 in the year
ended 30 June 2009 and has accumulated
losses of $19,438,695 as at 30 June 2009.
These conditions give rise to a material
uncertainty that may cast significant doubt
upon the Company’s ability to continue as
a going concern. The ongoing operation of
the Company is dependent on:

the Company raising additional funding
from shareholders or other parties;
and/or

the Company reducing expenditure in
line with available funding.

The directors have prepared cash flow
projections that support the ability of the
Company to continue as a going concern.
These cash flow projections assume the
Company obtains sufficient additional
funding from shareholders or other
parties. If such funding is not achieved, the
Company plans to reduce expenditures
significantly.

In the event that the Company does not
obtain additional funding and/or reduce
expenditure in line with available funding, it
may not be able to continue its operations
as a going concern and therefore may not
be able to realise its assets and extinguish
its liabilities in the ordinary course of
operations and at the amounts stated in
the financial statements.

Significant accounting policies

The accounting policies set out below have
been applied consistently to all periods
presented in the Company financial report.

New standards and interpretations not
yet adopted

The following standards, amendments to
standards and interpretations have been
identified as those which may impact the
entity in the period of initial application.
They are available for early adoption at 30
June 2009, but have not been applied in
preparing this financial report:

Revised AASB 101 Presentation of
Financial Statements (2007) introduces
the term total comprehensive income,
which represents changes in equity
during a period other than those
changes resulting from transactions
with owners in their capacity as owners.
Total comprehensive income may be
presented in either a single statement
of comprehensive income (effectively
combining both the income statement
and all non-owner changes in equity
in a single statement) or, in an income
statement and a separate statement of
comprehensive income. Revised AASB
101, which becomes mandatory for
the Company’s 30 June 2010 financial
statements, is expected to have a
significant impact on the presentation
of the financial statements. The
Company plans to provide total
comprehensive income in a single
statement of comprehensive income
for its 2010 financial statements.

AASB 2008-1 Amendments to
Australian Accounting Standard
– Share-based Payment: Vesting
Conditions and Cancellations clarifies
the definition of vesting conditions,
introduces the concept of non-vesting
conditions, requires non-vesting
conditions to be reflected in grant-date
fair value and provides the accounting

Biotron Limited Annual Report 2009 I

nOtes tO tHe FinAnciAl stAtements FOR tHe YeAR ended 30 JUne 2009

treatment for non-vesting conditions
and cancellations. The amendments
to AASB 2 will be mandatory for the
Company’s 30 June 2010 financial
statements, with retrospective
application. The Company has not yet
determined the potential effect of the
amendment.

AASB 2008-5 Amendments to
Australian Accounting Standards arising
from the Annual Improvements Process
and 2008-6 Further Amendments to
Australian Accounting Standards arising
from The Annual Improvements Process
affect various AASBs resulting in minor
changes for presentation, disclosure,
recognition and measurement purposes.
The amendments, which become
mandatory for the Company’s 30 June
2010 financial statements, are not
expected to have any impact on the
financial statements.

Cash and cash equivalents

Cash and cash equivalents comprise cash
balances and call deposits.

Trade and other receivables

Trade and other receivables are stated at
their amortised cost less impairment losses.

Property, plant and equipment
Property plant and equipment are stated
at their historical cost less accumulated
depreciation and impairment loss.
Depreciation is recognised in profit or loss
using the reducing balance method from
the date of acquisition at rates between
13% and 40% per annum.

Research and development

Grants

Where a grant is received relating to
research and development costs that have
been expensed, the grant is recognised as
revenue when there is reasonable assurance
it will be received.

18 I Biotron Limited Annual Report 2009

Costs

Long service leave

Expenditure on research activities,
undertaken with the prospect of gaining
new scientific or technical knowledge and
understanding, is recognised in profit and
loss when incurred.

Development activities involve a plan
or design for the production of new or
substantially improved products and
processes. Development expenditure is
capitalised only if development costs can
be measured reliably, the product or process
is technically and commercially feasible,
future economic benefits are probable, and
the Company intends to and has sufficient
resources to complete development and
to use or sell the asset. The expenditure
capitalised includes the cost of materials,
direct labour and overhead costs that are
directly attributable to preparing the asset
for its intended use. Other development
expenditure is recognised in profit or loss
when incurred.

Capitalised development expenditure
is measured at cost less accumulated
amortisation and accumulated impairment
losses.

Trade and other payables
Trade and other payables are stated at their
amortised cost, are non-interest bearing
and are normally settled within 60 days.

Employee entitlements

Wages, salaries, annual leave and sick leave

Liabilities for employee entitlements for
wages, salaries, annual leave and sick leave
represent present obligations resulting from
employees’ services provided to reporting
date, calculated at undiscounted amounts
based on remuneration wages and salary
rates that the company expect to pay as at
reporting date including related on-costs,
such as workers compensation insurance
and superannuation.

Liabilities for employee entitlements for
long service leave is the amount of future
benefit that employees have earned in
return for their service in the current and
prior periods plus related on-costs, that
benefit is discounted to determine its
present value.

Share capital

Ordinary shares

Ordinary shares are classified as equity.
Incremental costs directly attributable
to the issue of ordinary shares and share
options are recognised as a deduction from
equity, net of any tax effects. Dividends on
ordinary shares are recognised as a liability
in the period in which they are declared.

Taxation

Income tax

Income tax on the profit or loss for the year
comprises current and deferred tax. Income
tax is recognised in the income statement
except to the extent that it relates to items
recognised directly in equity, in which case
it is recognised in equity.

Current tax is the expected tax payable on
the taxable income for the year, using tax
rates enacted or substantially enacted at
the balance sheet date, and any adjustment
to tax payable in respect of previous years.

Deferred tax is provided using the balance
sheet method, providing for temporary
differences between the carrying amounts
of assets and liabilities for financial
reporting purposes and the amounts
used for taxation purposes. The initial
recognition of assets or liabilities that
affect neither accounting nor taxable profit,
and differences relating to investments in
subsidiaries to the extent that they will
probably not reverse in the foreseeable
future are temporary differences and are
not provided for. The amount of deferred
tax provided is based on the expected
manner of realisation or settlement of the

carrying amount of assets and liabilities,
using tax rates enacted or substantively
enacted at the balance sheet date.

A deferred tax asset is recognised only to
the extent that it is probable that future
taxable profits will be available against
which the asset can be utilised. Deferred
tax assets are reduced to the extent that it
is no longer probable that the related tax
benefit will be realised.

Goods and services tax

Revenue, expenses and assets are
recognised net of the amount of goods
and services tax (‘gST’), except where the
amount of gST incurred is not recoverable
from the taxation authority. In these
circumstances, the gST is recognised as
part of the cost of acquisition of the asset
or as part of the expense.

Receivables and payables are stated
with the amount of gST included. The
net amount of gST recoverable from, or
payable to, the ATO is included as a current
asset or liability in the balance sheet.

Cash flows are included in the statement
of cash flows on a gross basis. The gST
components of cash flows arising from
investing and financing activities which are
recoverable from, or payable to, the ATO are
classified as operating cash flows.

Revenue recognition

Finance income

Interest revenue is recognised as it accrues
using the effective interest rate method.

Earnings per share
The Company presents basic and diluted
earnings per share (EPS) data for its
ordinary shares. Basic EPS is calculated by
dividing the profit or loss attributable to
ordinary shareholders of the Company by
the weighted average number of ordinary
shares outstanding during the period.
Diluted EPS is determined by adjusting
the profit or loss attributable to ordinary

shareholders and the weighted average
number of ordinary shares outstanding for
the effects of all dilutive potential ordinary
shares, which comprise share options
granted to employees.

Incentive option plan
The Incentive Option Plan allows the
Company’s employees or directors, or
individuals whom the Plan Committee
determine to be employees for the
purposes of the Plan, with the opportunity
to acquire options over unissued shares
in the Company. The fair value of options
granted is measured at grant date and
spread as an expense over the period
during which the employees or directors
become unconditionally entitled to the
options. The fair value of the options
granted is measured using Black-Scholes
formula, taking into account the terms
and conditions upon which the options
were granted. The amount recognised as
an expense is adjusted to reflect the actual
number of options that vest except where
forfeiture is only due to share prices not
achieving the threshold for vesting.

Impairment

Financial assets

A financial asset is assessed at each
reporting date to determine whether
there is any objective evidence that it is
impaired. A financial asset is considered
to be impaired if any objective evidence
indicates that one or more events have had
a negative effect on the estimated future
cash flows of that asset.

An impairment loss in respect of a financial
asset measured at amortised cost is
calculated as the difference between its
carrying amount, and the present value of
the estimated future cash flows discounted
at the original effective interest rate. An
impairment loss in respect of an available-
for-sale financial asset is calculated by
reference to its fair value.

All impairment losses are recognised
in profit or loss. Any cumulative loss in
respect of an available-for-sale financial

asset recognised previously in equity is
transferred to profit and loss.

An impairment loss is reversed if the
reversal can be related objectively to an
event occurring after the impairment
loss was recognised. For financial assets
measured at amortised cost and available-
for-sale financial assets that are debt
securities, the reversal is recognised in profit
or loss. For available-for-sale financial assets
that are equity securities the reversal is
recognised directly in equity.

Non-financial assets

The carrying amounts of the Company’s
non-financial assets are reviewed at each
reporting date to determine whether
there is any indication of impairment. If
any such indication exists then the asset’s
recoverable amount is estimated.

The recoverable amount of an asset or
cash-generating unit is the greater of its
value in use and its fair value less costs to
sell. In assessing value in use, the estimated
future cash flows are discounted to their
present value using a pre-tax discount rate
that reflects current market assessments
of the time value of money and the risks
specific to the asset.

An impairment loss is recognised if the
carrying amount of an asset or its cash-
generating unit exceeds its recoverable
amount. Impairment losses are recognised
in profit or loss.

An impairment loss in respect of goodwill
is not reversed. In respect of other assets
impairment losses recognised in prior
periods are assessed at each reporting
date for any indications that the loss
has decreased or no longer exists. An
impairment loss is reversed if there has
been a change in the estimates used to
determine the recoverable amount. An
impairment loss is reversed only to the
extent that the asset’s carrying amount
does not exceed the carrying amount
that would have been determined, net
of depreciation or amortisation, if no
impairment had been recognised.

Biotron Limited Annual Report 2009 I 19

nOtes tO tHe FinAnciAl stAtements FOR tHe YeAR ended 30 JUne 2009

Determination of fair values

Share-based payment transactions

Non-derivative financial liabilities

A number of the Company’s accounting
policies and disclosures require the
determination of fair value, for both
financial and non-financial assets and
liabilities. Fair values have been determined
for measurement and/or disclosure
purposes based on the following methods.
Where applicable, further information about
the assumptions made in determining fair
values is disclosed in the notes specific to
that asset or liability.

Trade and other receivables

The fair value of trade and other receivables
is estimated as the present value of future
cash flows, discounted at the market rate of
interest at the reporting date.

The fair value of employee share options is
measured using the Black-Scholes formula.
Measurement inputs include share price on
measurement date, exercise price of the
instrument, expected volatility (based on
weighted average historic volatility adjusted
for changes expected due to publicly
available information), weighted average
expected life of the instruments (based on
historical experience and general option
holder behaviour), expected dividends,
and the risk-free interest rate (based on
government bonds). Service and non-market
performance conditions attached to the
transactions are not taken into account in
determining fair value.

2. OTHER INCOME

Research and development grants

gain on sale of fixed assets

Total

3. LOSS FROM OPERATING ACTIVITIES

Loss from ordinary activities has been arrived at after charging the following items:

Auditors’ remuneration paid to KPMg

- Audit and review of financial reports

- Other audit services

Depreciation

- Office equipment

- Plant and equipment

Direct research and development expenditure

expensed as incurred

Provision for employee entitlements

20 I Biotron Limited Annual Report 2009

Fair value, which is determined for
disclosure purposes, is calculated based
on the present value of future principal
and interest cash flows, discounted at the
market rate of interest at the reporting date.

2009

5,000

26,240

1,750

24,831

22,900

980,294

(20,383)

2008

431,409

18,043

5,000

8,763

31,681

1,303,421

60,913

4. LOSS PER SHARE

The calculation of basic loss per share at 30 June 2009 was based on the loss attributable to ordinary shareholders of $1,776,099
(2008 - $1,882,093) and a weighted average number of ordinary shares outstanding during the financial year ended 30 June 2009 of
106,600,586 (2008 - 94,070,553), calculated as follows:

Net loss for the year

1,776,099

1,882,093

Issued ordinary shares at 1 July

Effect of shares issued on 21 December 2007

Effect of shares issued on 31 March 2008

Effect of shares issued on 22 May 2008

Effect of shares issued on 14 April 2009

Weighted average number of ordinary shares

2009

Number

104,443,565

2,157,021

106,600,586

2008

Number

89,743,565

1,913,548

2,129,222

284,218

94,070,553

Options disclosed in the Issued Capital note 11 are potential ordinary shares, but are not included in the calculation of diluted loss per share
as they are not dilutive.

INCOME TAX EXPENSE

Numerical reconciliation between tax expense and pre-tax net profit

Loss before tax - continuing operations

Income tax using the domestic corporation tax rate of 30%

Increase in income tax expense due to:

- Adjustments not resulting in temporary differences

- Unrecognised temporary differences

Effect of tax losses not recognised

Income tax expense current and deferred

Deferred tax assets have not been recognised in respect
of the following items:

Deductible temporary differences (net)

Tax losses

Net

2009

2008

(1,776,099)

(532,830)

(1,882,093)

(564,628)

2,371

(24,045)

554,504

85,004

6,618,540

6,703,544

3,090

(41,243)

602,781

99,068

6,064,035

6,163,103

The deductible temporary differences and tax losses do not expire under the current tax legislation. Deferred tax assets have not been
recognised in respect of these items because it is not probable that future taxable profit will be available against which the Company can
utilise the benefits of the deferred tax asset.

Biotron Limited Annual Report 2009 I 21

nOtes tO tHe FinAnciAl stAtements FOR tHe YeAR ended 30 JUne 2009

6. RECEIVABLES

Current

Other debtors

gST receivable

7. OTHER

Current prepayments

Security deposits

8. PLANT AND EQUIPMENT

Office equipment - at cost

Accumulated depreciation

Plant and equipment - at cost

Accumulated depreciation

Total plant and equipment - net book value

Reconciliations

Reconciliations of the carrying amounts for each class of plant and equipment are set out below:

Office equipment

Balance at 1 July

Additions

Depreciation

Carrying amount at the end of the financial year

Plant and equipment

Balance at 1 July

Depreciation

Carrying amount at the end of the financial year

Total carrying amount at the end of the financial year

22 I Biotron Limited Annual Report 2009

2009

2,011

25,509

27,520

3,255

15,130

18,385

157,439

(118,615)

38,824

594,490

(565,962)

28,528

67,352

63,655

(24,831)

38,824

51,428

(22,900)

28,528

67,352

2008

15,395

44,088

59,483

3,941

25,219

29,160

157,439

(93,784)

63,655

892,480

(841,052)

51,428

115,083

10,156

62,262

(8,763)

63,655

83,109

(31,681)

51,428

115,083

9. TRADE AND OTHER PAYABLES

Current

Creditors

Accruals

10. EMPLOYEE ENTITLEMENTS

Current

Employee annual leave provision

Long service leave provision

2009

34,897

101,500

136,397

46,722

39,213

85,935

2009

Number

2008

227,030

90,597

317,627

72,202

34,116

106,318

2008

Number

Number of employees at the end of the financial year

11. ISSUED CAPITAL

Issued and paid up capital

114,537,315 (2008 - 104,443,565) fully paid ordinary shares

19,920,593

19,146,365

Fully paid ordinary shares

Balance at the beginning of the financial year

Issue of shares

Costs of issue

Balance at the end of financial year

19,146,365

807,500

(33,272)

19,920,593

16,865,134

2,499,000

(217,769)

19,146,365

Biotron Limited Annual Report 2009 I 23

nOtes tO tHe FinAnciAl stAtements FOR tHe YeAR ended 30 JUne 2009

Holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at
shareholders’ meetings. In the event of winding up of the Company, ordinary shareholders rank after creditors and are fully entitled to any
proceeds of liquidation.

During the year ended 30 June 2009, the Company issued 10,093,750 (2008 – 14,700,000) ordinary shares through a Share Purchase Plan
and placement for cash totalling $807,500 (2008 – $2,499,000). Total issue costs of $33,272 (2008 – $217,769) were recognised as a
reduction of the proceeds of issue of these shares.

During the year ended 30 June 2009, no options were issued (2008 – 1,000,000). No ordinary shares have been issued as a result of the
exercise of any option during the years ended 30 June 2009 and 30 June 2008.

The following options were on issue at 30 June 2009, each exercisable to acquire one fully paid ordinary share:

1,000,000 options, each exercisable at 35 cents to acquire one fully paid ordinary share at any time up to 30 September 2010.
These options were issued as part of underwriting fee on the Share Purchase Plan to Martin Place Securities during the year ended
30 June 2008.

4,450,000 options, each exercisable at 35 cents to acquire one fully paid ordinary share at any time up to 30 September 2010 (of which
certain options contained service conditions).

750,000 options, each exercisable at 40 cents to acquire one fully paid ordinary share at any time up to 30 September 2010 (of which
certain options contained service conditions).

500,000 options, each exercisable at 45 cents to acquire one fully paid ordinary share at any time up to 30 September 2010 (of which
certain options contained service conditions).

The fair value of the options at each grant date was determined based on the Black-Scholes formula. The model inputs for those options
issued during the year ended 30 June 2008, were the Company’s share price of $0.22 at the grant date, a volatility factor of 89.4% based on
historic share price performance and a risk free interest rate of 7.25% based on the 10 year government bond rate.

Total expense arising from share based payment transactions recognised during the year ended 30 June 2009 was nil (2008 – $88,223).

During the year ended 30 June 2009, no options lapsed (2008 – 400,000 options with a value of $25,112 lapsed unexercised).

The weighted average exercise price of options at year end was $0.363 (2008 – $0.363).

24 I Biotron Limited Annual Report 2009

12. RESERVES

equity compensation

Balance at the beginning of the financial year

Issue of options

Transfer to accumulated losses on lapse of options

Balance at the end of the financial year

This reserve represents the fair value, at the date of issue, of options issued as compensation.

13. ACCUMULATED LOSSES

Accumulated losses at the beginning of the financial year

Transfer from reserve

Net loss attributable to members of the Company

Accumulated losses at the end of the financial year

14. STATEMENT OF CASH FLOWS

Reconciliation of cash flows from operating activities

Loss for the period

Adjustments for:

Depreciation of plant and equipment

Provisions

Equity compensation

gain on sale of plant and equipment

changes in assets and liabilities

Decrease in receivables

Decrease in inventories

Decrease in prepayments

(Increase)/decrease in payables

Decrease/(increase) in other assets

net cash used in operating activities

Reconciliation of cash

2009

359,608

2008

296,497

88,223

(25,112)

359,608

17,662,596

1,776,099

19,438,695

15,805,615

(25,112)

1,882,093

17,662,596

(1,776,099)

(1,882,093)

47,731

(20,383)

(5,000)

31,963

686

(181,230)

10,089

(1,892,243)

40,444

60,913

(18,434)

2,059

200,010

(25,218)

(1,622,319)

For the purposes of the Statement of Cash Flows, cash includes cash on hand and at bank and cash on deposit net of bank overdrafts and
excluding security deposits. Cash at the end of the financial year as shown in the Statement of Cash Flows is reconciled to the related
items in the Balance Sheet as follows:

Cash and cash equivalents in the statement of cash flows

950,581

2,063,596

Biotron Limited Annual Report 2009 I 25

nOtes tO tHe FinAnciAl stAtements FOR tHe YeAR ended 30 JUne 2009

15. KEY MANAGEMENT PERSONNEL DISCLOSURES

No directors or senior executives receive performance related remuneration. No bonuses were paid during the year.

Details of director and senior executive remuneration and the nature and amount of each major element of the remuneration of each
director and senior executive of the Company are:

Primary Salary
and Fees
$

Post-Employment
Superannuation
Benefits
$

Equity
Compensation
Value of Options
$

directors
Non-executive
Michael J. Hoy
(Chairman)
Michael S. Hirshorn

Bruce Hundertmark

Peter g. Scott

Executive
Michelle Miller
(Managing Director)

Total, all specified
directors

executives
Peter J. Nightingale
(Company Secretary)

Total, all specified
directors and executives

Year

2009
2008
2009
2008
2009
2008
2009
2008

2009
2008

26 I Biotron Limited Annual Report 2009

55,046
60,000
27,523
30,000
27,523
30,000
5,000
5,000

200,000
200,000

315,092
325,000

75,000
75,000

390,092
400,000

4,954
5,400
2,477
2,700
2,477
2,700
25,000
27,700

18,000
18,000

52,908
56,500

-
-

52,908
56,500

Total
$

60,000
65,400
30,000
32,700
30,000
32,700
30,000
32,700

218,000
220,403

368,000
383,903

-
-
-
-
-
-
-
-

-
2,403

-
-

75,000
75,000

-
2,403

443,000
485,903

Options
as a % of
Remuneration

-
-
-
-
-
-
-
-

-
1%

-
-

-
1%

Equity holdings and transactions

The movement during the reporting period in the number of ordinary shares in the Company held directly, indirectly or beneficially, by each
specified director and executive, including their personally-related entities, is as follows:

Fully paid ordinary shareholdings and transactions - 2009

Held at
1 July 2008

Purchased

Received on
exercise of options

Sales

Held at
30 June 2009

Directors

Michael J. Hoy

Michelle Miller

Michael S. Hirshorn

Bruce Hundertmark

Peter g. Scott

Executives

1,345,714

62,500

8,924,414

89,586

Peter J. Nightingale

1,639,897

62,500

Fully paid ordinary shareholdings and transactions - 2008

1,408,214

9,014,000

1,702,397

Held at
1 July 2007

Purchased

Received on
exercise of options

Sales

Held at
30 June 2008

Directors

Michael J. Hoy

Michelle Miller

Michael S. Hirshorn

Bruce Hundertmark

Peter g. Scott

Executives

1,316,314

29,400

8,895,014

29,400

Peter J. Nightingale

1,610,497

29,400

1,345,714

8,924,414

1,639,897

During the year ended 30 June 2009, Michael J. Hoy had an interest in an entity, CityPrint Holdings Pty Limited, which provided printing
services to the Company. Payments to CityPrint Holdings Pty Limited, which were in the ordinary course of business and on normal terms
and conditions, amounted to $17,062 (2008 - $24,259). Outstanding amounts at 30 June 2009 total nil (2008 - nil).

During the year ended 30 June 2009, Peter J. Nightingale had an interest in an entity, MIS Corporate Pty Limited, which provided full
administrative services, including rental accommodation, administrative staff, services and supplies, to the entity. Fees paid to MIS Corporate
Pty Limited during the year, which were in the ordinary course of business and on normal terms and conditions, amounted to $122,025
(2008 - $122,588). Outstanding amounts at 30 June 2009 total nil (2008 - nil).

Apart from the details disclosed in this note, no director has entered into a material contract with the Company since the end of the previous
financial year and there were no material contracts involving directors’ interests existing at year end.

Biotron Limited Annual Report 2009 I 27

nOtes tO tHe FinAnciAl stAtements FOR tHe YeAR ended 30 JUne 2009

Option holdings

Option holdings - 2009

Held at
1 July 2008

Granted as
remuneration

Expired

Held at
30 June 2009

Vested and
exercisable
at 30 June 2009

Directors

Michael J. Hoy

Michelle Miller

Michael S. Hirshorn

Bruce Hundertmark

Peter g. Scott

Executives

500,000

1,500,000

200,000

Peter J. Nightingale

200,000

Option holdings - 2008

500,000

1,500,000

200,000

500,000

1,500,000

200,000

Held at
1 July 2007

Granted as
remuneration

Expired

Held at
30 June 2008

Vested and
exercisable
at 30 June 2008

Directors

Michael J. Hoy

Michelle Miller

Michael S. Hirshorn

Bruce Hundertmark

Peter g. Scott

Executives

500,000

1,500,000

200,000

Peter J. Nightingale

200,000

500,000

1,500,000

200,000

500,000

1,500,000

200,000

Biotron Limited Annual Report 2009

16. EMPLOYEE AND DIRECTOR INCENTIVE OPTION PLAN

At 30 June 2009, the Company had 4 employees (2008 - 4). All other personnel are contracted by the Company on a consultancy basis.

The Company has an Incentive Option Plan to provide eligible persons, being employees or directors, or individuals whom the Plan
Committee determine to be employees for the purposes of the Plan, with the opportunity to acquire options over unissued ordinary shares
in the Company. The number of options granted or offered under the Plan will not exceed 10% of the Company’s issued share capital and the
exercise price of options will be the greater of the market value of the Company’s shares as at the date of grant of the option or such amount
as the Plan Committee determines. Options have no voting or dividend rights.

In the event that the employment or office of the optionholder is terminated, any options which have not reached their exercise period
will lapse and any options which have reached their exercise period may be exercised within three months of the date of termination of
employment. Any options not exercised within this three month period will lapse.

During the year ended 30 June 2009, no options were granted to employees (2008 - nil). No ordinary shares have been issued as a result of
the exercise of any option granted pursuant to the Incentive Option Plan during the years ended 30 June 2009 and 30 June 2008.

17. FINANCIAL INSTRUMENTS DISCLOSURE

The Board has overall responsibility for the establishment and oversight of the risk management framework. Informal risk management
policies are established to identify and analyse the risks faced by the Company.

The main risks arising from the Company’s financial instruments are credit risk, liquidity risk and interest rate risk. The summaries below
present information about the Company’s exposure to each of these risks, their objectives, policies and processes for measuring and
managing risk, the management of capital and financial instruments.

Credit risk

Credit risk arises mainly from the risk of counterparties defaulting on the terms of their agreements. The carrying amounts of the following
assets represent the Company’s maximum exposure to credit risk in relation to financial assets:

Cash and cash equivalents

Trade and other receivables

Security deposits

Note

Carrying amount
2009

Carrying amount
2008

950,581

27,520

15,130

993,231

2,063,596

59,483

25,219

2,148,298

The Company mitigates credit risk on cash and cash equivalents by dealing with regulated banks in Australia. Credit risk of trade and other
receivables is very low as it consists predominantly of amounts recoverable from taxation authorities in Australia.

Impairment losses

No impairment has been taken up against the Company’s financial assets.

None of the Company’s trade and other receivables are past due and no amount receivable has been renegotiated.

Biotron Limited Annual Report 2009 I

nOtes tO tHe FinAnciAl stAtements FOR tHe YeAR ended 30 JUne 2009

Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company’s approach to
managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both
normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

The following are the contractual maturities of financial liabilities, including estimated interest payments:

Company

Carrying amount

Contractual
cash flows

Less than
one year

Between one
and five years

Interest

30 June 2009

Trade and other payables

136,397

(136,397)

30 June 2008

Trade and other payables

317,627

(317,627)

Ultimate responsibility for liquidity management rests with the Board of Directors. The Company manages liquidity risk by maintaining
adequate funding and monitoring of future rolling cash flow forecasts of its operations, which reflect management’s expectations of expected
settlement of financial assets and liabilities.

Interest rate risk

The Company’s income statement is affected by changes in interest rates due to the impact of such changes on interest income from cash
and cash equivalents and interest bearing security deposits.

At balance date, the Company had the following mix of financial assets exposed to variable interest rate risk that are not designated as cash
flow hedges:

Financial Assets

Cash and cash equivalents

Security deposits

Net exposure

Sensitivity analysis

Note

2009

950,581

15,130

2008

2,063,596

25,219

965,711

2,088,815

An increase of 100 basis points in interest rates throughout the reporting period would have decreased the loss for the period by the amounts
shown below, whilst a decrease would have increased the loss by the same amount. The Company’s equity consists of fully paid ordinary
shares. There is no effect on fully paid ordinary shares by an increase or decrease in interest rates during the period.

30 June 2009

30 June 2008

Biotron Limited Annual Report 2009

Loss for the period

9,657

20,888

Capital management

The Board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future
development of the business.

The Board ensures costs are not incurred in excess of available funds and will seek to raise additional funding through issues of shares for the
continuation of the Company’s operation. There were no changes in the Company’s approach to capital management during the year.

The Company is not subject to externally imposed capital requirements.

Net fair values of financial assets and liabilities

The carrying amounts of financial assets and liabilities approximate their net fair values, given the short time frames to maturity and or
variable interest rates.

18. FINANCIAL REPORTING BY SEGMENTS

The Company operates in the biotechnology industry in Australia.

19. OPERATING LEASE

The Company leases an office in North Ryde Sydney. The lease is for a period of 3 years with an option to renew lease after that 3 years.
Lease payments are increased every year at an increment of 5% per annum.

During the year ended 30 June 2009, $51,351 was recognised as an expense in the income statement in respect of the operating lease
(2008 - $25,818).

Less than one year

Between one and five years

More then five years

2009

58,831

25,009

2008

56,029

83,840

Biotron Limited Annual Report 2009 I

DIRECTORS’ declaration

In the opinion of the directors of Biotron Limited:

1. a) the financial statements and notes set out on pages 13 to 31, and the remuneration disclosures that are contained in the

Remuneration Report in the Directors’ Report, set out on pages 8 to 10, are in accordance with the Corporations Act 2001, including:

(i) giving a true and fair view of the Company’s financial position as at 30 June 2009 and of its performance for the financial year

ended on that date; and

(ii) complying with Australian Accounting Standards (including Australian Accounting Interpretations) and the Corporations

Regulations 2001;

b) the financial report also complies with International Financial Reporting Standards as disclosed in note 1;

c) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

2. The directors have been given the declarations required by Section 295A of the Corporations Act 2001 from the chief executive officer
and chief financial officer for the financial year ended 30 June 2009.This report has been signed in accordance with a resolution of the
directors and is dated 28 August 2009:

This report has been signed in accordance with a resolution of the directors and is dated 28 August 2009:

Michael J. Hoy

Chairman

Michelle Miller

Managing Director

Biotron Limited Annual Report 2009

INDEPENDENT Audit Report tO tHe memBeRs OF BiOtROn limited

Report on the financial report

We have audited the accompanying
financial report of Biotron Limited (the
Company), which comprises the balance
sheet as at 30 June 2009, and the income
statement, statement of recognised
income and expense and statement of
cash flows for the year ended on that date,
a description of significant accounting
policies and other explanatory notes 1 to
19 and the directors’ declaration.

Directors’ responsibility for the
financial report

The directors of Biotron Limited are
responsible for the preparation and fair
presentation of the financial report in
accordance with Australian Accounting
Standards (including the Australian
Accounting Interpretations) and the
Corporations Act 2001. This responsibility
includes establishing and maintaining
internal control relevant to the preparation
and fair presentation of the financial report
that is free from material misstatement,
whether due to fraud or error; selecting and
applying appropriate accounting policies;
and making accounting estimates that are
reasonable in the circumstances.

In Note 1, the directors also state, in
accordance with Australian Accounting
Standard AASB 101 Presentation of
Financial Statements, that the financial
report comprising the financial statements
and notes, complies with International
Financial Reporting Standards.

Auditor’s responsibility

Our responsibility is to express an opinion
on the financial report based on our audit.
We conducted our audit in accordance
with Australian Auditing Standards. These

Auditing Standards require that we comply
with relevant ethical requirements relating
to audit engagements and plan and perform
the audit to obtain reasonable assurance
whether the financial report is free from
material misstatement.

An audit involves performing procedures
to obtain audit evidence about the
amounts and disclosures in the financial
report. The procedures selected depend
on the auditor’s judgement, including
the assessment of the risks of material
misstatement of the financial report,
whether due to fraud or error. In making
those risk assessments, the auditor
considers internal control relevant to the
entity’s preparation and fair presentation
of the financial report in order to design
audit procedures that are appropriate in the
circumstances, but not for the purpose of
expressing an opinion on the effectiveness
of the entity’s internal control. An audit
also includes evaluating the appropriateness
of accounting policies used and the
reasonableness of accounting estimates
made by the directors, as well as evaluating
the overall presentation of the financial
report.

We performed the procedures to
assess whether in all material respects
the financial report presents fairly, in
accordance with the Corporations Act
2001 and Australian Accounting Standards
(including the Australian Accounting
Interpretations), a view which is consistent
with our understanding of the Company’s
financial position and of its performance.

We believe that the audit evidence we have
obtained is sufficient and appropriate to
provide a basis for our audit opinion.

Independence

In conducting our audit, we have complied
with the independence requirements of the
Corporations Act 2001.

Auditor’s opinion

In our opinion:

a) the financial report of Biotron Limited
is in accordance with the Corporations
Act 2001, including:

(i) giving a true and fair view of the
Company’s financial position
as at 30 June 2008 and of its
performance for the year ended on
that date; and

(ii) complying with Australian

Accounting Standards (including
the Australian Accounting
Interpretations) and the
Corporations Regulations 2001.

(b) the financial report also complies

with International Financial Reporting
Standards as disclosed in note 1.

Material Uncertainty Regarding
Continuation as a Going Concern

Without qualifying our opinion, we draw
attention to Note 1, “going Concern” in the
financial report. The conditions disclosed in
Note 1 indicate the existence of a material
uncertainty which may cast significant
doubt about the Company’s ability to
continue as a going concern and, therefore,
whether it will realise its assets and
extinguish its liabilities in the normal course
of business and at the amounts stated in
the financial report.

Report on the remuneration report

We have audited the Remuneration Report
included in pages 8 to 10 of the directors’
report for the year ended 30 June 2008. 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
auditing standards.

Biotron Limited Annual Report 2009 I

independent AUdit RepORt tO tHe memBeRs OF BiOtROn limited

Auditor’s opinion

In our opinion, the remuneration report of Biotron Limited for the year ended 30 June 2009 complies with Section 300A of the Corporations
Act 2001.

KPMG

Brisbane 28 August 2009:

W.E. Austin
Partner

ADDITIONAL stock exchange information

Home Exchange

The Company is listed on the Australian
Stock Exchange Limited. The home
exchange is Sydney.

Use of Cash and Assets

Since the Company’s listing on the
Australian Stock Exchange, the Company
has used its cash and assets in a way
consistent with its stated business
objectives.

Class of Shares and Voting Rights

There is only one class of shares in the
Company, fully paid ordinary shares.

The rights attaching to shares in the
Company are set out in the Company’s
Constitution. The following is a summary of
the principal rights of the holders of shares
in the Company.

Every holder of shares present in person or
by proxy, attorney or representative at a
meeting of shareholders has one vote

on a vote taken by a show of hands, and,
on a poll every holder of shares who is
present in person or by proxy, attorney or
representative has one vote for every fully
paid share registered in the shareholder’s
name on the Company’s share register.

A poll may be demanded by the
chairperson of the meeting, by at least
5 shareholders entitled to vote on the
resolution or shareholders with at least
5% of the votes that may be cast on the
resolution on a poll.

Distribution of Equity Securityholders

As at 31 July 2009, the distribution of each class of equity was as follows:

Range

1 - 1,000

1,001 - 5,000

5,001 - 10,000

10,001 - 100,000

100,001 and over

Fully Paid
Ordinary Shares

30 September 2010
$0.35 Options

30 September 2010
$0.40 Options

30 September 2010
$0.45 Options

397

293

562

147

1,450

At 31 July 2008, 364 shareholders held less than a marketable parcel of 4,167 shares.

Biotron Limited Annual Report 2009

Twenty largest Quoted shareholders

At 31 July 2009 the twenty largest fully paid ordinary shareholders held 47.20% of fully paid ordinary as follows:

Name

Dr Angela Fay Dulhunty

Scott’s A V Pty Ltd

Rigi Investments Pty Ltd

Twynam Agricultural group Pty Ltd

Australian National University

CBDF Pty Ltd

Pathold No 222 Pty Ltd

Linkenholt Pty Ltd

Lenvat Pty Ltd

Chris and Bhama Parish

Philip and Marylyn Board

12 Wightholme Nominees Pty Ltd

13 Michael John Hoy

Christopher David Hammer

15 Ms Kurniaty Limardi

LSAF Holding Pty Ltd

Carrington Services Pty Ltd

Peter James Nightingale

Prof Alan Jonathan Berrick

Ian and Marion Platt-Hepworth

There are no current on-market buy-backs.

Fully Paid
Ordinary Shares

9,968,362

9,014,000

4,442,645

3,700,000

3,072,058

2,875,254

2,500,000

2,000,000

1,700,000

1,600,000

1,599,950

1,570,000

1,408,214

1,380,715

1,270,000

1,250,000

1,200,000

1,175,714

1,150,000

1,090,048

8.70

7.87

3.88

3.23

2.68

2.51

2.27

1.75

1.48

1.40

1.37

1.23

1.21

1.11

1.09

1.05

1.03

1.00

0.95

Biotron Limited Annual Report 2009 I

Corporate directory

Auditors:

KPMg
Level 16, Riparian Plaza
71 Eagle Street
BRISBANE QLD 4000

Home Exchange:

ASX Limited
20 Bridge Street
SYDNEY NSW 2000

Solicitors:

Minter Ellison
88 Phillip Street
SYDNEY NSW 2000

Directors:

Mr Michael J. Hoy (Chairman)
Dr Michelle Miller (Managing Director)
Dr Michael S. Hirshorn
Mr Bruce Hundertmark
Mr Peter g. Scott

Company Secretary:

Mr Peter J. Nightingale

Registered Office:

Level 2, 66 Hunter Street
SYDNEY NSW 2000

Phone:
Fax:
E-mail:
Homepage: www.biotron.com.au

61-2 9300 3344
61-2 9221 6333
enquiries@biotron.com.au

Principal Administration Office:

Suite 1.9, 56 Delhi Road
NORTH RYDE NSW 2113

Phone:
Fax:

61-2 9805 0488
61-2 9805 0688

Share Registrar:

Computershare Investor Services Pty Limited
PO Box 523
BRISBANE QLD 4001

Phone: 61-7 3237 2100
61-7 3229 9860
Fax:

Biotron Limited, incorporated and domiciled in Australia, is a publicly listed company limited by shares.

Biotron Limited Annual Report 2009

Contents

operating and Financial review

statement of Corporate Governance

directors’ report

income statement

statement of recognised income and expense

Balance sheet

statement of Cash Flows

notes to the Financial statements

directors’ declaration

independent Audit report

Additional stock exchange information

Corporate directory

1205970 Biotron 09 Cover.indd 2

11/9/09 6:05:51 PM

Level 2 • 66 Hunter Street • Sydney NSW 2000 • Australia

Annual Report 2009

Biotron Limited ABn 60 086 399 144

1205970 Biotron 09 Cover.indd 1

11/9/09 6:05:51 PM