Cryosite Limited
ABN 86 090 919 476
Appendix 4E
Full Year Report
BResults for announcement to the market
1. Details of Reporting Period
The financial information contained in this report is for the 12 months ended 30 June 2021.
Comparative amounts (unless otherwise indicated) relate to the year ended 30 June 2020.
2. Results for Announcement to the Market
$A'000
2.1 Revenue from ordinary activities:
Up
12%
to
10,081k
2.2a Underlying profit before tax for the period from
ordinary activities (prior year excluded the legal
claim):
2.2b Profit (loss) from ordinary activities after tax
attributable to members (prior year excluded the legal
claim):
Up
39%
to
1,120k
Up
25%
to
653k
2.3 Net profit (loss) for the period attributable to
members:
Down
56%
to
653k
2.4 Dividends
The Board of Cryosite has on the 24th August 2021determined that no dividend will be paid.
2.5 Commentary on the results to the market:
An explanation of the result of the current period is set out in the Directors Report contained
in the attached audit reviewed Annual Financial Report.
3.0 NTA backing
Current period
Previous
corresponding
Period
Net tangible asset backing per ordinary security
0.8 cents
(0.7) cents
B
0
8
CRYOSITE LIMITED ANNUAL REPORT
Table of Contents
Corporate Information
CEO's Message
Directors’ Report
Corporate Governance
Auditor’s Independence Declaration
Directors Declaration
Consolidated Statement Of Profit And Loss And Other Comprehensive Income
Consolidated Statement Of Financial Position
Consolidated Statement Of Changes In Equity
Consolidated Statement Of Cashflows
Notes To The Financial Statements
1 Corporate Information
2 Summary Of Significant Accounting Policies
3 Significant Accounting Judgements, Estimates And Assumptions
4 Lease AASB 16
5 Segment Information
6 Revenue
7 Expenses
8 Income Tax
9 Earnings Per Share
10 Cash And Cash Equivalents
11 Statement Of Cash Flow Reconciliation
12 Current Assets - Trade and Other Receivables
13 Current Assets - Inventories
14 Prepayments
15 Other Assets
16 Non-Current Trade and Other Receivables
17 Non-Current Assets -Investment in Controlled Entity
18 Non-Current Assets - Plant And Equipment
19 Non-Current Assets - Intangible Assets
20 Deferred Costs
21 Trade And Other Payables
22 Unearned Income
23 Deferred Revenue
24 Provisions
25 Contributed Equity and Accumulated Losses
26 Reserves
27 Commitments And Contigencies
28 Auditors Remuneration
29 Related Party Disclosures
30 Share-Based Payments Expense
31 Key Management Personnel
32 Financial Instruments
33 Parent Entity Financial Information
34 Legal Claim
35 Legal Settlement
36 Reclassification and Comparative Figures
Independent Auditor’s Report
ASX Additional Shareholder Information
Page
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61
CRYOSITE LIMITED ANNUAL REPORT
Corporate Information
DIRECTORS
Mr. Bryan Dulhunty (Non-Executive Chairman)
Mr. Andrew Kroger (Non-Executive Director)
Mrs. Nicola Swift (Non-Executive Director)
COMPANY SECRETARY
Mr. Bryan Dulhunty (CoSA Life Science - Corporate)
REGISTERED OFFICE AND PRINCIPAL PLACE OF BUSINESS
13a Ferndell Street
South Granville
NSW 2142
Telephone:
Email:
+61 2 8865 2000
corporate@cryosite.com
SHARE REGISTER
Link Market Services Limited
Level 8, 580 George Street
Sydney NSW, 2000
Telephone:
+61 1300 554 474
AUDITORS
Mazars Risk & Assurance Pty Limited
Level 12, 90 Arthur Street
North Sydney NSW, 2060
Telephone:
+61 2 9922 1166
WEBSITE
www.cryosite.com
www.cryosite.com.au
CORPORATE GOVERNANCE
https://investors.cryosite.com/investors/?page=corporate-governance
Cryosite Limited Annual Report 30 June 2021
1
CEO’s Message
“A year of growth combined with successful repositioning of the business.”
Dear Shareholders,
It has been a successful, indeed transformative year for Cryosite. We have consolidated our position as one of
the leading clinical trials organisations in Australia. We have completed and successfully integrated technology
into the operations and continue to grow. We have done this against the backdrop of unparalleled challenges
presented by the Covid-19 pandemic.
Key Achievements
Successful validation of inventory management system;
Successful validation of our quality management system;
Successfully managed Covid-19 situation;
Platform set for future growth; and
·
·
·
·
· New customer engagement at all-time highs – with relationships established with some of the world’s
largest pharmaceutical companies.
Clinical Trials, Biological Storage and Logistics
The site in South Granville has performed strongly over the year. With increased capacity, modernisation of
plant and equipment the site presents as one of the premier clinical trials facilities in Australia. During the year
we added to the footprint with the build, commissioning and opening of new cold rooms and state of the art
temperature-controlled processing areas, adding capability and further capacity to the site for future growth
and increased volumes.
Cryosite’s depot capabilities continue to expand as the number of clinical trials taking place in Australia / New
Zealand increase. Cryosite believes its investments in additional capacity and enhanced services makes it the
clear choice to support clinical trial / pharmaceutical companies in ANZ.
Cord Blood
The Company is excited about the long term potential profit and cash contribution from the Cord Blood segment.
Following the closure of the collection and processing parts of the cord Blood segment in 2017 the Company has
continued to store under long term contracts, the cords collected since 2002. These long-term contracts were
largely cash up front contracts or 5-year payment plans. So while the financial results show an ongoing decline
in revenue and cash flows as a result of our exiting the collection and processing of cords and tissue (run out
period) the future for cord blood revenue and cash flows look bright. The initial 18-year contracts that the
Company entered into 2002 have now expired. The company is now offering annual and multi-year renewal
contracts. After 2 years of offering these renewal contracts, we are encouraged with the take up rate of this
offering.
As time progresses, we have increasing confidence of the potential of this as a future profit and cash generator
for the business. While the financial results will show a decrease in profitability and cash flow for the next couple
of years (run out period) we believe the medium to longer term looks positive.
As such the company has invested in additional staff, improving our database and electronic communications
with cord blood customers and we have established a standalone cord blood website
Continuing organic growth
Leveraging and executing on the opportunities presented by our new capabilities.
Seeking out further attractive growth strategies and expand in the medical technology markets.
Cryosite Limited Annual Report 30 June 2021
2
CEO’s Message
Consolidation and Efficiency Focus
During the year Cryosite fast-tracked its efficiency programs with solar panel and LED installation and more
environmentally friendly equipment to deliver ongoing benefit to overall competitiveness and the environment.
This process was commenced during the year and will continue in FY22.
The Impact of Covid-19
The FY21 year has certainly been one that has thrown up its fair share of challenges to the business environment.
I would like to take this opportunity to thank all of Cryosite’s dedicated staff for their resilience, focus, attitude
and commitment during this year. This, in spite of the hurdles faced, has seen us perform strongly during this
period and has positioned us very well for the future.
Covid-19 has brought several key themes to the forefront of the national consciousness, which are of direct
relevance to our business. First, as a country, we have far too heavy a reliance on imported medicines. And
secondly, we are far too exposed to the risks posed by global supply chains.
We believe that Cryosite is positioned very well to take advantage of these themes and their tailwinds, and the
onshoring of clinical trials depots which is likely to take place. With our global client base, significant capability
and capacity we are in an enviable position to take advantage of this in the future.
Outlook
It is not possible at this time to predict the ongoing impact or longevity of Covid-19. Whilst we expect some
short-term impact to business from the pandemic in FY22, largely from the global supply chain in the medium
term, Cryosite will be a net beneficiary due to the localisation of clinical trials.
This presents an exciting opportunity for Cryosite to focus on leveraging its significant client base, capacity and
capability to take advantage of these market dynamics. With Cryosite’s experienced management we believe
we have a number of levers to pull in regard to new business and industry expansion to deliver for our
shareholders now and in the future.
This coupled with Cryosite’s balance sheet position gives us the opportunity to focus on potential further growth
and at the same time seek out attractive and accretive strategic relationships to consolidate this market leading
position.
New Business
In keeping with our strategy, Cryosite is working with new clients to expand our horizons into adjacent markets.
We have setup a new relationship in the oncology market for time / temperature sensitive products and are
about commence an exciting trial with a new approach to the supply chain.
Cryosite has identified the medical cannabis market as an exciting, new area and are currently in the final stages
of implementing a distribution channel using our extensive clinical trials knowledge and capabilities for
controlled substances.
Large pharmaceutical companies at times require more specialised services than traditional third-party service
providers offer due to very high value, low volume, specific temperature management and handling needs of a
product. Cryosite is currently building additional specialised capabilities to enter into the market in the 4th
quarter of the new financial year with new multi-national clients.
Investment to meet the needs of new business has been included in the capital budget for next year.
Cryosite Limited Annual Report 30 June 2021
3
CEO's Message
Closing
In closing I would like to extend once more my thanks to our shareholders for your ongoing support. We will
continue to remain diligent and focused to deliver upon our strategic objectives and deliver sustainable
growth and shareholder value over the long term.
On behalf of the Executive, I would also like to express my sincere thanks to each and every staff
member of Cryosite, including the newly welcomed members from our upskilling program this year for
your dedication, efforts and commitment to continuing on our journey together.
Together with the Board and our dedicated management team, I look forward to delivering upon our
strategic objectives :
Maintain and develop relationships with Tier 1 Pharma customers
Leverage Cryosite's capabilities to expand services in attractive cate gories.
Drive innovation with customers to maximise the revenue and margin opportunity.
Maximise opportunity from onshoring of clinical trials depots
ldentifyattractiveopportunitiestocapturesharefromcustomersonshoringtheirdepots.
Utilise existing capacity and/or use demand to underpin capacity expansions.
Proactively assess strategic relationships and growth opportunities
Disciplined approach to strategic relationships in clinical trials and temperature sensitive
sectors.
Drive operational improvement and cost synergies
Continue to leverage Cryosite's core operational strength and customer service capabilities
Removal of Covid-19 related costs from the supply chain .
Business Sustainability
Continue to take actionable, sustainable and proven steps into environmental, social and
ethical risks management though our membership to the EcoVadis organisati on.
I would also like to extend my thanks to the Board of Cryosite, whose guidance, leadership and direction have
been invaluable in the Company being positioned where it is today.
John H
CEO
Cryosite Limited Annual Report 30 June 2021
4
Directors’ Report
The directors present their report together with the financial statements on the consolidated entity (the Group)
consisting of Cryosite Limited (the Company) and the entity it controlled for the year ended 30 June 2021.
DIRECTORS
The following persons were directors of Cryosite Limited during the financial year and up to date of this report
unless otherwise stated:
Mr. Bryan Dulhunty (appointed 2 March 2018)
Mr. Andrew Kroger (appointed 21 November 2011) Non-Executive
Non-Executive
Mrs. Nicola Swift (appointed 31 October 2016)
Non-Executive Chairman
Names, qualifications, experience, interests and special responsibilities
Bryan Dulhunty, BEc, CA, Non-Executive Chairman
Mr. Dulhunty brings a wealth of life science experience to the position having been involved in the industry for
the past 20 years. Mr. Dulhunty provides a range of consulting services to the life science industry. Mr. Dulhunty
has served as a director of a number of listed ASX and non-listed life science companies. Mr. Dulhunty is a
Chartered Accountant and holds an Economics Degree from Sydney University. Mr. Dulhunty was appointed to
the Board on 2nd March 2018 and took on a short-term role as Executive Chairman on the 27th June 2019. On
15th October 2020 Mr. Dulhunty stepped down from his executive Chairman’s role to non-executive Chairman.
Interest in shares and options at date of report
Shares
Options
Special responsibilities
30,000
1,300,000
Member of the Audit and Risk Committee and
Nomination and Remuneration Committee
Company Secretary
Mr. Andrew Kroger, BEc. LLB, Non-Executive Director
Mr. Kroger has had a career in stockbroking, law and general management including two years running Forsayth
Group in 1990 which was Australia’s ninth largest gold producer at that time. Mr. Kroger is the owner of Process
Wastewater Technologies LLC, a company with its major business being in wastewater in the United States. Mr.
Kroger has a Bachelor of Economics and a Bachelor of Laws from Monash University. Mr. Kroger was appointed
to the Cryosite Limited board in November 2011.
Interest in shares at date of report
20,266,964
Mrs. Nicola Swift, BA (Mod) Legal Science, MA, CFA, GAICD, Non-Executive Director
Mrs. Swift has an extensive background in the international investment management and securities industry as
a research director, portfolio manager and equity analyst in London, Sydney and Boston with various global
institutional investors. Mrs. Swift is a Chartered Financial Analyst, a graduate of the Australian Institute of
Corporate Directors and holds an Honours Law degree and a Masters of Arts from Trinity College Dublin. Mrs.
Swift was appointed to the Board on 3 November 2016.
Interest in shares at date of report
Special responsibilities
Nil
Chair of the Remuneration and Nominations
Committee & Chair of Audit and Risk Committee
Cryosite Limited Annual Report 30 June 2021
5
Directors’ Report (Continued)
COMPANY SECRETARY
Bryan Dulhunty, BEc, CA
Company Secretarial Services for Cryosite Limited are provided by CoSA Life Science Pty Limited - Corporate, a
Company Secretarial firm specialising in the Life science industries.
EARNINGS PER SHARE
Basic earnings per share (cents)
Diluted earnings per share (cents)
2021
1.39
1.34
2020
3.16
3.03
2020* excluding the legal claim
1.11
1.07
(*Please see Note 34 on page 55 for the details of the $1m legal claim receipt in FY20)
DIVIDENDS
No dividends were paid during the financial year. The total dividends declared were $nil (2020: nil).
PRINCIPAL ACTIVITIES
Cryosite operates through two operating segments:
·
Clinical Trials, Biological Storage and Logistics
Cryosite provides specialist temperature-controlled storage, labelling, status management, secondary packaging,
schedule drug distribution, destruction, returns management, comparator sourcing, import, export, validated
transport solutions and biological storage to the clinical trials, research and pharmaceutical industry
·
Cord Blood and Tissue Storage
This business provides long term storage for cord blood and tissue samples.
REVIEW OF OPERATIONS
Overview
The results of the year ended 30 June 2021 evidence the continued turnaround of Cryosite over the past 3 years
with
· Revenue continued its year-on-year growth, increasing by $1m (12%) to $10m.
· Net Profit before tax continued its year-on-year growth. Net profit before tax of $1.120m increased by
$314k (39%) from the prior year $807k (excluding $959k one-off legal claim).
Cash remains strong with a cash balance of $3.9m at financial year end with no debt facilities.
Segment profit
§
Clinical Trials, Biological Storage and Logistics
Clinical trials continued to perform strongly.
Revenue:
Clinical trial revenue grew 20.4% from the prior corresponding period to $7.5m. This represents the fourth half
year of continued growth. The Company continues its expansion of its product offering into products listed on
the Register of Therapeutic Goods as described in prior year reports.
Cryosite Limited Annual Report 30 June 2021
6
Directors’ Report (Continued)
We have successfully expanded the licenses we hold and aim to expand these further to ensure continued broad
growth.
Expenses:
The company has invested in the future with the appointment of a number of senior staff, as well as the
validation and implementation of a new warehousing IT system. These actions have seen expenses increase by
a similar amount to the increase in sales. However, these expenditure items have given us the capacity for future
expansion.
Profit:
Profit from the clinical trial division has continued its year-on-year growth to $3,141k (2020: $2,901k).
§
Cord Blood and Tissue Storage
As stated in the previous directors' reports, the cord blood business remains in decline following the company's
exit from the collection and processing of cord blood in 2017. During year revenue declined by $167k to
$2,519k.
Revenue:
Cord blood revenues are comprised of entries bringing to account the deferred revenue relating to recorded
long term contracts. Revenue is recognised over the life of the contact. As these contracts reach full term,
associated revenue will decline. However, with the expiry of the original 18 and 25-year contracts, the Company
has commenced offering ongoing annual storage plans. Whilst the contracts that have reached full term as at
30 June 2021 are only small in number (the Company offered its first 18-year contracts in 2002) at this stage,
we are highly encouraged with the high take up rate of this ongoing annual offering. If take up rates continue
at current levels, the cord blood segment over time will grow to be a significant profit centre.
Expenses:
Whilst cord blood expenses are largely fixed, an additional staff member was employed during the year, in
addition to increased expenditure incurred on developing the electronic database to ensure efficient and
effective interaction with our large number of cord blood customers.
Profit:
The combination of a small decline in revenue and an increase in expenses, the profit contribution from cord
blood activities decreased from $656k in the prior year to $444k for this year.
Cash
Cash remains strong with a cash balance at financial year end of $3.9m with no debt facilities.
During the year, there were cash inflows from operations of $489k, Investing outflows of ($374k) and financing
outflows of ($296k). They combined to a net $181k reduction in cash on hand.
Cash inflow from operations continues to grow year on year. Cash inflows from operations of $489k increased
by $132k from the prior year inflows of $357k (excluding the one-off legal settlement inflow of $958k in the prior
year) whilst supporting a significant growth in operating working capital.
Outlook
We believe the trends set in the past 2 years will continue into the coming year. As outlined in the CEO report
we have entered into a number of new sales contracts with new clients. To fulfil the needs of these contracts
the company expects to spend $760k on further capital expenditure in the 2022 financial year. While this
expenditure will not add significantly to sales in the coming financial year, they are expected to add to significant
sales volume increase in the following years.
Cryosite Limited Annual Report 30 June 2021
7
Directors’ Report (Continued)
Our financial results and the winning of new contracts demonstrates that our growth strategy is proving
successful.
The pandemic has the potential to be a significant influence on the Company, the ongoing effects remains an
unknown.
EMPLOYEES AND DIVERSITY
The Company employed 20 full-time equivalent employees as at 30 June 2021 (2020: 18 employees).
We are proud our staff have a rich mix of backgrounds, experiences and perspectives, giving us a unique culture
and competitive advantage.
We strive to harness the power of diversity and to create an inclusive environment that empowers everyone to
make a real difference. This environment enables our teams to support the success of our clients, and helps our
people reach their full potential.
The Company recognises the value of diversity in the workplace and is committed to providing equal opportunity
for all its staff with a 50/50 mix of employee’s male/female ratio. There are numerous religions, cultures and
where possible we offer flexible work practices and work life balance as a key retention tool. Cryosite is
committed to providing a workplace free from any form of harassment, bullying and discrimination.
As at 1 July 2021
Male
Female
Total
Male
Female
Total
All employees
Management
Team Lead
Age Range
Board of Directors
12
12
24
5
5
10
1
1
2
30 - 68
25 - 62
25 - 68
2
1
3
All employees
Management
Team Lead
Average age
Board Members
50%
50%
100%
50%
50%
100%
50%
50%
100%
49
45
47
67%
33%
100%
EMPLOYEE INCENTIVE PLANS
In February 2017, the Cryosite Employee Incentive Plan (CEIP) was introduced to attract, retain and motivate
management to strengthen their alignment with shareholder interests. This plan was ratified at the 2017 AGM.
As at the date of this report there are 1,950,000 (2020: 1,950,000) unissued ordinary shares under the CEIP:
Options
Total
2021
$
1,950,000
1,950,000
2020
$
1,950,000
1,950,000
Please refer to the remuneration report for further details. The circumstances under which Personnel is entitled
to retain these options and performance rights if they leave the Company before the vesting date, is controlled
by the terms of the CEIP and is at the discretion of the Board.
Cryosite Limited Annual Report 30 June 2021
8
Directors’ Report (Continued)
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
Other than detailed in the above there were no significant changes in the state of affairs of the Group during
the year.
SIGNIFICANT EVENTS AFTER THE BALANCE DATE
As at the date of this report there are no significant events that have occurred since the 30th June 2021.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS
The Board expects to focus on a growing clinical trial, biological services and logistics business supported by the
long-term storage of cord blood and tissue for existing clients.
ENVIRONMENTAL REGULATIONS
The Company provides a range of services that require compliance to a variety of regulatory and statutory bodies
regulations, including the Therapeutic Goods Administration (TGA), the Office of Drug Control, the Department
of Agriculture and Water Resources and the NSW Department of Health. Additionally, the Company must comply
with the quality system requirements of many of its customers. The Company has implemented a Company-
wide quality management system to ensure that it meets or exceeds the requirements of all these interests.
There have been no significant known breaches of the consolidated entity’s licence conditions or any regulations
to which it is subject. The Company, to the best of its knowledge, is not subject to any specific environmental
regulations.
ENVIRONMENTAL RESPONSIBILITIES
Cryosite is committed to developing energy and greenhouse gas management systems to reduce our
Greenhouse Gas Emissions (GHG). The company has invested in sustainable technology.
These investments include:
The installation of LED lighting throughout the site;
The installation of solar panels;
·
·
· Replacement and upgrading of air conditioning units and compressors to more environmentally
sustainable technology;
· Addition of web-based technology to optimise and control the function of all air conditioning units,
compressors and variable controlled plant and equipment on site;
Cardboard recycling where possible;
·
· Modernisation of our -80C freezer farm plant and equipment;
·
Commitment to external review by Eco Vadis Global Sustainability Ratings Organisation.
Achievements:
Electricity Consumption and Greenhouse Gas Emissions
· Dec 2019 = 65 Tonnes
· May 2021 = 42 Tonnes
Cryosite Limited Annual Report 30 June 2021
9
Directors’ Report (Continued)
· Reduction = -35% in GHG
EcoVadis Global Sustainability Ratings
·
Silver
STATUTORY LICENSING AND COMPLIANCE
Most of the services that Cryosite provide to generate income require some form of statutory licensing or
compliance authority. The failure by Cryosite to attain and maintain such licenses and approvals would have a
significant negative effect on the Company’s ability to continue to provide such services and to maintain its
viability. As referred to in other parts of this report, Cryosite is committed to mitigating risks in this area by the
implementation and maintenance of a Company-wide Quality Management System.
INSURANCE OF DIRECTORS AND OFFICERS
The Company has paid a premium in respect of a contract insuring all the Directors and Officers against liability,
except willful breach of duty, of a nature that is required to be disclosed under section 300(8) of the Corporations
Act 2001. In accordance with commercial practice, further details of the nature of the liabilities insured against
and the amount of the premium have not been disclosed.
In addition to the above, the Directors and certain Officers of the Company have entered into a Deed of
Indemnity and Access confirming the Company’s obligation to maintain an adequate Director and Officer
Liability insurance policy and confirming the individual Directors’ and Officers’ right to access board papers and
other Company documents. In return, the individual Directors and Officers have agreed to allow the Company
to conduct the defense should the event arise.
The Company has not otherwise, during or since the end of the financial year, indemnified or agreed to
indemnify an Officer or Auditor of the Company or of any related body corporate against a liability incurred as
such an Officer or Auditor.
REMUNERATION REPORT (Audited)
This remuneration report outlines the director and executive remuneration arrangements of the Company and
the Group in accordance with the requirements of the Corporations Act 2001 and Regulations. For the purposes
of this report, key management personnel (KMP) of the Group are defined as those persons having authority
and responsibility for planning, directing and controlling the major activities of the Company and the Group,
directly or indirectly, including any director (whether executive or otherwise) of the parent Company, and
includes an executive in the Parent and the Group receiving the highest remuneration.
This has been audited by Mazars Risk & Assurance Pty Limited and is included within the scope of the audit
report on pages 12-15.
Key Management Personnel
Details of the nature and amount of each element of remuneration for key management personnel of the
Company which includes those key management personnel receiving the highest compensation for the financial
year are as follows:
Mr. Bryan Dulhunty
Mr. Andrew Kroger
Mrs. Nicola Swift
Mr John Hogg
Ms Jane Hao
Non-Executive Chairman
Non-Executive Director
Non-Executive Director
Chief Executive Officer (appointed on 15/10/2020)
Chief Financial Officer (appointed on 8/01/2021)
Cryosite Limited Annual Report 30 June 2021
10
Directors’ Report (Continued)
The role of the Nominations and Remuneration Committee
While the Board maintains the authority and responsibility for the oversight of the Company’s remuneration
policy and the principles and processes which underpins the policy, on 9 December 2016, the Board established
a Nominations and Remuneration committee to provide advice and recommendations to the Board on the
structure and level of remuneration for the directors, senior executives and Company secretary, and on the
design and award of all executive incentive plans.
The members of the committee are the independent non-executive director, Mrs. Nicola Swift (Chair) and
Chairman Mr. Bryan Dulhunty.
Remuneration philosophy
The Company recognises the importance of structuring remuneration packages of its key management
personnel so as to attract and retain people with the qualifications, skills and experience to help the Company
achieve the required objectives. However, the Company understands that a prudent position must be observed
in the total remuneration expense.
Board and Non-Executive Directors
As set out in our corporate governance policies, directors remuneration is set to attract a requisite skill set
required to govern the company. The board has annual internal process to evaluate the performance of the
board and its committees.
Cryosite has two non-executive directors and a non-executive Chairman. During the reporting period two of the
three directors were deemed not to be-independent. The chairman, Mr. Dulhunty was not deemed to be
independent for a period of time due to his executive role (that role ended on 15th October 2020, when Mr.
Dulhunty stepped down from his executive Chairman’s role to non-executive Chairman) and Mr. Andrew Kroger
was not deemed to be independent, due to his substantial shareholding of the company with a relevant interest
at the date of this report of 43.2%. Ms. Nicola Swift is considered to be independent.
Due to the small size of the company a board skill matrix has not been developed.
The board carries out an annual internal performance review of board, committees and individual directors. The
last performance appraisal was carried out in August 2021.
The remuneration of directors including the Chairman consists of fixed annual fees. Apart from reimbursement
of expenses incurred on the Company’s behalf, non-executive directors are not eligible for any additional
payments, unless directors take on additional or executive roles then they are entitled to additional fees. These
additional fees are set out later in this report.
Non- Executive Chairman of the Board:
Non-Executive Directors:
Chair of the Remuneration and Nominations Committee: $5,000 maximum per annum, plus superannuation
Chair of Audit and Risk Committee: $5,000 maximum per annum, plus superannuation
$75,000 maximum per annum, plus superannuation
$60,000 maximum per annum, plus superannuation
Performance based compensation is not part of the remuneration structure offered to non-executive directors.
Total remuneration paid to non-executive directors is determined by the Board from time to time for
presentation to and resolution by shareholders at the Annual General Meeting. The current maximum aggregate
remuneration paid to non-executive directors is $350,000 per year. During 2021 total aggregate remuneration
paid to non- executive directors was $224,475 (2020; $142,200).
Cryosite Limited Annual Report 30 June 2021
11
Directors’ Report (Continued)
Executive Remuneration
Executive total remuneration consists of the following components:
Fixed Remuneration
This comprised of a fixed base salary and statutory superannuation. This is reviewed annually although there is
no guaranteed increase.
Short Term Incentive Plans
2021
Payments to directors are set out in the remuneration table below.
Long Term Incentive Plan: Cryosite Employee Incentive Plan (CEIP)
On 23 February 2017, the Cryosite Employee Incentive Plan (CEIP) was established by the Company. On
invitation, the CEIP provides executives the opportunity to receive a long-term equity-based incentive in each
financial year and is governed by the CEIP Plan Rules.
Options
On the 27 June 2019, the board granted options to the following key management personnel:
Options granted 27 June 2019
Total options issued as at 30 June 2019
Bryan Dulhunty*
No.
1,300,000
1,300,000
John Hogg
No.
650,000
650,000
Total
No.
1,950,000
1,950,000
The following components of the CEIP for options are as follows:
Vesting date
Option price
Vesting conditions
Performance conditions
Service conditions
Expiry date
Exercise of Options
Conditions
Grant date
Vesting date
Expiry date
Period
Exercise price
Up to 25 months from date of grant.
6 cents
Options will only vest after certain performance and conditions are met.
Earnings per Share (EPS), Operating cashflow
Continuous employment with Cryosite from the date of the options are
granted until the vesting date.
Options will expire 36 months after the vesting date.
Any options which meet the Vesting conditions will be available for
exercise up until the Expiry date.
27 June 2019
1 September 2021
1 September 2024
27/6/2019 to 1/9/2021
6 cents
Targets
Conditions of Vesting
Positive Earnings per share (EPS)*
Positive Cashflow from Operations*
Continuous service
* Based on the 2021 audited accounts
Target date
30 June 2021
30 June 2021
30 June 2021
Percentage of Performance
Rights that vest
33.3%
33.3%
33.3%
Cryosite Limited Annual Report 30 June 2021
12
Directors’ Report (Continued)
Compensation for Key Management Personnel 2021
Year Ended 30
June 2021
Short term benefits
Post
employment
benefits
Share
based
payments
Total
Share
based
payments
Performance
based
Salary &
Fees
$
Other
Cash
benefits
$
Super
$
Directors
Andrew Kroger
Bryan Dulhunty
Nicola Swift (1)
Total directors
Executives
John Hogg (2)
Jane Hao (3)
Total Executive
Total
60,000
75,000
70,000
205,000
220,053
65,385
285,438
490,438
-
-
-
-
-
-
-
-
5,700
7,125
6,650
19,475
22,105
6,212
28,317
47,792
(4)
$
-
7,850
-
7,850
3,925
-
3,925
11,775
$
%
%
65,700
89,975
76,650
232,325
246,084
71,596
317,680
550,005
0.0%
8.7%
0.0%
3.4%
1.6%
0.0%
1.2%
2.1%
0.0%
8.7%
0.0%
3.4%
1.6%
0.0%
1.2%
2.1%
*Chairman
(1) Nicola Swift - Director’s fee paid to Nicola Swift $60,000 plus $5,000 as the Chair of the Remuneration and Nominations Committee, and
$5,000 as the Chair of Audit and Risk Committee.
(2) CEO appointed on 15th October 2020.
(3) CFO appointed on 8th January 2021.
(4) This relates to the fair value of performance rights and options granted under the Cryosite Employee Incentive Plan (CEIP).
Compensation for Key Management Personnel 2020
Year Ended 30
June 2020
Short term benefits
Salary &
Fees
$
Other
Cash
benefits
$
Post
employment
benefits
Share
based
payments
Total
Share
based
payments
Performance
based
Super
$
(2)
$
$
%
%
Directors
Andrew Kroger
Bryan Dulhunty
Nicola Swift
Total directors
Executives
Mark Byrne (1)
Total Executive
Total
33,333
75,000
60,000
168,333
62,042
62,042
230,375
-
-
-
-
-
-
-
3,167
7,125
5,700
15,992
5,506
5,506
21,498
-
5,017
-
5,017
-
-
5,017
36,500
87,142
65,700
189,342
67,548
67,548
256,890
0.0%
5.8%
0.0%
2.6%
0.0%
0.0%
2.0%
0.0%
5.8%
0.0%
2.6%
0.0%
0.0%
2.0%
Cryosite Limited Annual Report 30 June 2021
13
Directors’ Report (Continued)
(1) Resigned on 30 September 2019.
(2) This relates to the fair value of performance rights and options granted under the Cryosite Employee Incentive Plan CEIP).
Shareholdings of Key Management Personnel
Ordinary Shares held in
Cryosite Limited
Bryan Dulhunty
Andrew Kroger
Ordinary Shares held in
Cryosite Limited
Bryan Dulhunty
Andrew Kroger
1 July 2020
30,000
18,889,612
18,919,612
1 July 2019
30,000
17,315,291
17,345,291
Balance on
appointment /
(resignation)
-
-
-
Balance on
appointment /
(resignation)
-
-
-
Share purchases
-
1,377,352
1,377,352
30 June 2021
30,000
20,266,964
20,296,964
Share purchases
30 June 2020
-
30,000
18,889,612
1,574,321
1,574,321 18,919,612
Options Held by Key Management Personnel
Options held
1 July 2020
Balance on
appointment /
(resignation)
Bryan Dulhunty
John Hogg
1,300,000
650,000
1,950,000
-
-
-
Issued
30 June 2021
1,300,000
-
-
650,000
- 1,950,000
The above table discloses the key management personnel who hold or held shares or options during or since
the financial year.
Senior executive performance is renewed annually, a review was carried out in the current year.
The Company may terminate the employee’s contract without notice if serious misconduct has occurred. Where
termination with cause occurs, the executive is only entitled to that portion of remuneration that is fixed, and
only up to the date of termination. On termination with cause, any options that have granted but not vested will
be forfeited.
The Company does compare remuneration paid to key management personnel with other similar companies to
ensure consistency.
Loans to Key Management Personnel
There were no loans to key management personnel at the beginning of the year, at any time during the year, or
at the end of the year.
Other Transactions and Balances with Key Management Personnel
There were no other transactions during the year with key management personnel or with any key management
personnel related entities.
Cryosite Limited Annual Report 30 June 2021
14
Directors’ Report (Continued)
Directors’ and Committee Meetings
During the financial year, the following meetings incurred and were attended by directors:
Directors
Bryan Dulhunty
Andrew Kroger
Nicola Swift
Directors Meetings
Eligible to
attend
15
15
15
Eligible
attended
15
15
15
Audit Risk Committee
Meetings
Eligible to
attend
5
-
5
Eligible
attended
5
-
5
Remuneration and
Nomination Meetings
Eligible
attended
2
-
2
Eligible to
attend
2
-
2
Directors, Executives and Committee and Performance Review Structure
Directors and Executives
The board carries out an annual internal performance review of board members and board structure and makes
appropriate changes to facilitate the business and minimize risk. The last performance appraisal was carried out
in August 2021. Executives are evaluated by formalised performance review structure on annual basis.
Committees
The board carries out an annual internal performance review of both the audit and risk and the Remuneration
and nomination committee committees. The last performance appraisal was carried out in August 2021. The
board continually monitors the framework of the risk committee to ensure that it is responsive to the company’s
working environment.
Proceeding on Behalf of the Company
No person has applied to the Court under section 237 of the Corporate 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.
Corporate Governance Report
Cryosite is committed to implementing the highest possible standards of corporate governance. In determining
what those high standards should involve, Cryosite has turned to the ASX Corporate Governance Council’s
Corporate Governance Principles and Recommendations (ASX Principles) and has a corporate governance
framework that reflects those recommendations within the structure of the Company.
The Board of Cryosite approved an updated series of policies and charters in line with the amendments to the
ASX Principles. The Company’s policies and charters together form the basis of the Company’s governance
framework were in place for the financial year ended 30 June 2021 and to the date of signing of the directors’
report.
Within this framework:
-
-
-
-
the Board of Directors is accountable to shareholders for the performance of the Company;
the Company’s goals to achieve milestones are set and promulgated;
the risks of the business are identified and managed, and
the Company’s established values and principles underpin the way in which it undertakes its operations.
The Company has in place an entrenched, well developed governance culture which has its foundations in the
ethical values that the Board, management and staff bring to the Company and their commitment to positioning
the Company as a leader in its field.
Cryosite Limited Annual Report 30 June 2021
15
Directors' Report {Continued)
In certain instances, due to the size and stage of development of Cryosite and its operations, it may not be
practicable or necessary to implement t fie ASX Principles in their entirety. In these instances, Cryosite has
identified the areas of divergence.
In accordance with its Shareholder Communications Policy, Cryosite has made its corporate governance policies
and charters publicly available on its website (www.cryosite.com ).
Auditor's Independence Declaration and Non-Audit Services
The directors have received the auditor's independence declaration which is included on Page 17 of this report.
Non-audit services were provided by the entity's auditor, Mazars Risk and Assurance Pty Ltd, during the financial
year. Details of the services provided are disclosed in Note 28 of the Financial Stat ements. The directors are
satisfied that the provision of non-audit services 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 disclosed in Note 28 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 or
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 Profess ional and Ethical Standards Board,
including reviewing or auditing the audit or ' s own work, acting in a management or decision-making capacity for
the Company, acting as an advocate for the Company or jointly sharing economic risks and rewards.
This report is made in accordance
Corporations Act 2001.
with a resolution of directors, pursuant to section 298(2l(a) of the
Bryan Dulhunty
Non- Executive Chairman
Date : 24t h August 2021
Cryosite Limited Annual Report 30 June 2021
16
Level 12, 90 Arthur Street
North Sydney NSW 2060
PO Box 1994
North Sydney NSW 2059
Australia
Tel: +61 2 9922 1166
Fax: +61 2 9922 2044
www.mazars.com.au
AUDITOR’S INDEPENDENCE DECLARATION
TO THE DIRECTORS OF CRYOSITE LIMITED AND CONTROLLED ENTITY
In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following
declaration of independence to the directors of Cryosite Limited.
As lead audit partner for the audit of the financial statements of Cryosite Limited for the financial year
ended 30 June 2021, I declare that, to the best of my knowledge and belief, there have been no
contraventions of:
a)
the auditor independence requirements as set out in the Corporations Act 2001 in relation to the
audit; and
b) any applicable code of professional conduct in relation to the audit.
MAZARS RISK & ASSURANCE PTY LIMITED
Rose Megale
Director
Sydney, 24 August 2021
Mazars Risk & Assurance Pty Limited
ABN: 39 151 805 275
Liability limited by a scheme approved under Professional Standards Legislation
Directors Declaration
(1)
In the opinion of the directors:
(a)
the financial statements and notes of the consolidated entity are in accordance with the
Corporations Act 2001, including:
(i)
(ii)
giving a true and fair view of the consolidated entity's financial position as at 30 June
2021 and of its performance for the year ended on that date; and
complying with Accounting Standards, Corporations Regulations 2001 and other
mandatory professional reporting requirements; and
(b)
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) Note 2(a) confirms that the financial statements also comply with International Financial
Reporting Standards as issued by the Internat ional Accounting Standards Board.
(3)
This declaration has been made after receiving the declarations required to be made to directors in
accordance with section 295A of the Corporations Act 2001for the fi nancial year ended 30 June
2021.
On behalfofthe Board
Bryan Dulhunty
Non-Executive Chairman
Date: 24th August 2021
Cryosite Limited Annual Report 30 June 2021
18
Consolidated Statement of Profit and Loss and Other
Comprehensive Income
FOR THE YEAR ENDED 30 JUNE 2021
Sale of goods and rendering of services
Other revenue
Revenue
Cost of providing services
Depreciation and amortisation
Marketing expenses
Occupancy expenses
Administration expenses
Legal claim
Total expenses
Profit (loss) before tax
Income tax (expense) benefit
Profit (Loss) after tax
Notes
6
6
36
7(c,d,e,f)
36
34
8(a)
2021
$
2020
$
10,023,769
58,194
10,081,963
8,919,846
94,338
9,014,184
(4,129,378)
(589,098)
(74,933)
(558,154)
(3,609,952)
-
(8,961,515)
(3,333,500)
(437,554)
(57,604)
(329,831)
(4,049,171)
958,983
(7,248,677)
1,120,448
(467,874)
652,574
1,765,507
(285,328)
1,480,179
Net comprehensive Profit (loss) for the year
652,574
1,480,179
Earnings per share
Basic, profit/(loss) for the year attributable to ordinary
equity holders of the parent
Diluted, profit/(loss) for the year attributable to ordinary
equity holders of the parent
9
9
Cents
Cents
1.39
1.34
3.16
3.03
The above consolidated statement of profit and loss and other comprehensive income should be read in
conjunction with the accompanying notes.
Cryosite Limited Annual Report 30 June 2021
19
Consolidated Statement of Financial Position
AS AT 30 JUNE 2021
ASSETS
Current Assets
Cash and cash equivalents
Trade and other receivables
Inventories
Prepayments
Other assets
Deferred costs
Total Current Assets
Non-Current Assets
Trade and other receivables
Deferred tax asset, net
Right of use asset
Plant and equipment
Intangible assets
Prepayment
Other assets
Deferred costs
Total Non-Current Assets
TOTAL ASSETS
LIABILITIES
Current Liabilities
Trade and other payables
Unearned income
Provisions
Other liabilities
Lease Liability
Deferred revenue
Total Current Liabilities
Non-Current Liabilities
Trade and other payables
Unearned income
Provisions
Other liabilities
Lease Liability
Deferred revenue
Total Non-Current Liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Contributed equity
Share rights reserves
Accumulated losses
Notes
2021
$
2020
$
10
12
13
14
15
20
16
8(c)
4
18
19
14
15
20
21
22
24
35
4
23
21
24
35
4
23
25
26
25
3,881,126
1,670,234
52,508
387,317
5,892
1,295,890
7,292,967
80,251
1,667,266
985,839
1,163,218
16,251
15,239
167,937
10,603,887
14,699,888
4,061,832
962,717
47,880
353,672
167,937
1,332,574
6,926,612
138,253
2,135,141
1,213,340
1,168,465
20,317
-
-
11,899,778
16,575,294
21,992,855
23,501,906
787,539
138,385
235,530
53,330
215,253
2,047,829
3,477,866
441,682
28,148
243,724
474,502
849,765
16,099,625
18,137,446
21,615,312
377,543
5,861,788
30,392
(5,514,637)
377,543
731,963
78,692
178,263
50,311
197,301
2,129,237
3,365,767
441,682
-
240,963
527,833
1,065,018
18,147,450
20,422,946
23,788,713
(286,807)
5,861,788
18,616
(6,167,211)
TOTAL EQUITY
The above consolidated statement of financial position should be read in conjunction with the accompanying note
(286,807)
Cryosite Limited Annual Report 30 June 2021
20
Consolidated Statement of Changes in Equity
FOR THE YEAR ENDED 30 JUNE 2021
CONSOLIDATED
Attributable to equity holders of the company
Contributed
capital
Accumulated
losses
Share Rights
reserve
Total equity
At 1 July 2020
5,861,788
(6,167,211)
18,616
(286,807)
Total comprehensive income (loss)
for the year
Transactions with owners in their
capacity as owners
Share based expense
-
-
652,574
-
652,574
-
11,776
11,776
At 30 June 2021
5,861,788
(5,514,637)
30,392
377,543
At 1 July 2019
5,861,788
(7,647,390)
69,532
1,716,070
Total comprehensive income (loss)
for the year
Transactions with owners in their
capacity as owners
Performance rights/option
granted
Performance rights cancelled
-
-
-
1,480,179
-
1,480,179
-
-
29,198
(80,114)
29,198
(80,114)
At 30 June 2020
5,861,788
(6,167,211)
18,616
(286,807)
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
Cryosite Limited Annual Report 30 June 2021
21
Consolidated Statement of Cashflows
FOR THE YEAR ENDED 30 JUNE 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers inclusive of GST
Payments to suppliers and employees inclusive of GST*
Legal Claim, net
Income Tax Refund
Government Incentive - Cash Boost
Net cash flows from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of plant and equipment
Software development costs
Interest received
Net cash flows (used in) investing activities
Notes
2021
$
2020
$
7,644,188
6,869,903
(7,205,387)
(6,583,748)
-
-
50,000
958,983
21,035
50,000
11
488,801
1,316,173
19
(396,894)
(889,530)
-
22,810
(20,317)
27,745
(374,084)
(882,102)
CASH FLOWS FROM FINANCING ACTIVITIES
Operating Lease Payments (including notional interest)
Interest expense
Net cash flows (used in) financing activities
(260,777)
(254,600)
(34,646)
(37,536)
(295,423)
(292,136)
Net (decrease)/ increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
(180,706)
141,935
4,061,832
3,919,897
Cash and cash equivalents at end of year
10
3,881,126
4,061,832
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
Cryosite Limited Annual Report 30 June 2021
22
Notes to the Financial Statements
For the Year Ended 30 June 2021
1
CORPORATE INFORMATION
The financial report of Cryosite Limited and the controlled entity (the Group) for the year ended 30 June 2021
was authorised for issue in accordance with a resolution of the directors on 24 August 2021.
Cryosite Limited is a company limited by shares incorporated in Australia whose shares are publicly traded on
the Australian Securities Exchange.
The nature of the operations and principal activities of the Group are described in the Directors’ Report.
2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of preparation
The financial report is a general-purpose financial report, which has been prepared in accordance with the
requirements of the Corporations Act 2001, and Australian Accounting Standards and other authoritative
pronouncements of the Australian Accounting Standards Board. Financial statements are prepared on the
going concern basis.
The financial report has been prepared on a historical cost basis, except when otherwise stated.
(a) Compliance with IFRS
The financial report complies with International Financial Reporting Standards (IFRS) as issued by the
International Accounting Standards Board (IASB).
(b) Changes in accounting policy, accounting standards and interpretations.
Impact of the initial application of other news and amended Standards that are effective for the current
period
In the twelve months to 30 June 2021, the Group has applied the amendments to Australian Accounting
Standards issued by the Australian Accounting Standards Board as outlined below, that are effective for the
Group’s annual reporting period that began on 1 July 2020. Their adoption has not had any material impact on
the disclosures or on the amounts reported in these financial statements.
AASB 2018-7 Amendments to Australian Accounting Standards – Definition of Material
This Standard amends AASB 101 Presentation of Financial Statements and AASB 108 Accounting Policies,
Changes in Accounting Estimates and Errors. The Group has adopted these amendments for the first time in
the current year. The amendments clarify the definition of material and are not intended to alter the underlying
concept of materiality in Australian Accounting Standards.
The accounting policies adopted in the preparation of the interim condensed consolidated financial statements
are consistent with those followed in the preparation of the Group’s annual consolidated financial statements
for the year ended 30 June 2020.
(c) Basis of consolidation
The consolidated financial statements comprise the financial statements of Cryosite Limited (the Company)
and its subsidiary (‘the Group’) as at 30 June each year.
The subsidiary is an entity over which the group has control. The group controls an entity when the group is
exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect
those returns through its power to direct the activities of the entity. The subsidiary is fully consolidated from
the date on which control is transferred to the group and deconsolidated from the date that control ceases.
Cryosite Limited Annual Report 30 June 2021
23
Notes to the Financial Statements
For the Year Ended 30 June 2021
The financial statements of the subsidiary are prepared for the same reporting year as the parent company,
using consistent accounting policies.
Adjustments are made to bring into line any dissimilar accounting policies that may exist.
All intercompany balances and transactions have been eliminated in full. The subsidiary is consolidated from
the date on which control is transferred to the Group and ceases to be consolidated from the date on which
control is transferred out of the Group. Investments in the subsidiary held by the Company are accounted for
at cost in the separate financial statements of the parent entity, less any impairment charges.
(d) Foreign currency translation
Both the functional and presentation currency of the Company and its Australian subsidiary is Australian dollars
(A$). Transactions in foreign currencies are initially recorded in the functional currency at the exchange rates
ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are
translated at the rate of exchange ruling at the balance sheet date.
(e) Plant and equipment
Plant and equipment are stated at cost less accumulated depreciation and any accumulated impairment losses.
Such cost includes the cost of replacing parts that are eligible for capitalisation when the cost of replacing the
parts is incurred. Similarly, when each major inspection is performed, its cost is recognised in the carrying
amount of the plant and equipment as a replacement only if it is eligible for capitalisation. All other repairs and
maintenance are recognised in the statement of comprehensive income as incurred.
Major Depreciation rates are:
2021
2020
Fixture and fittings
Information technology
Warehouse equipment
Office furniture and equipment
Leasehold improvements
5-10 years
2.5-5 years
4-10 years
2.5-8 years
5 years
5-10 years
2.5-5 years
4-10 years
2.5-8 years
5 years
The assets’ residual values, useful lives and amortisation methods are reviewed and adjusted if appropriate.
An item of plant and equipment is derecognised upon disposal or when no future economic benefits are
expected from its use or disposal.
(f) Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker. The chief operating decision maker, who is responsible for allocating resources and
assessing performance of the operating segments, has been identified as the Board.
(g) Intangible assets
The useful lives of intangible assets are assessed as either finite or indefinite.
Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment
whenever there is an indication that the intangible asset may be impaired.
Cryosite Limited Annual Report 30 June 2021
24
Notes to the Financial Statements
For the Year Ended 30 June 2021
The amortisation period and the amortisation method for an intangible asset with a finite useful life are
reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected
pattern of consumption of future economic benefits embodied in the asset are considered to modify the
amortisation period or method, as appropriate, and are treated as changes in accounting estimates. The
amortisation expense on intangible assets with finite lives is recognised in the statement of profit or loss as the
expense category that is consistent with the function of the intangible assets.
Intangible assets with indefinite useful lives are not amortised, but are tested for impairment annually, either
individually or at the cash-generating unit level. The assessment of indefinite life is reviewed annually to
determine whether the indefinite life continues to be supportable. If not, the change in useful life from
indefinite to finite is made on a prospective basis.
Software development costs are capitalised at the amounts incurred and amortised on a straight-line basis over
the period of their expected benefit being their finite life of 3 years. Amortisation starts at the time that the
technology is activated and is used by both internal and external customers. The capitalised costs of the
platform technology includes the direct costs of external consultants and any supporting software acquired
from a third party.
(h) Prepayments
Payments made in advance of services are recognised at the time of payment and classed as prepayments on
the balance sheet. As the services are incurred, the relevant amounts are recognized as an expense in the profit
and loss statement.
(i)
Inventories
Inventories consist of consumables used in the provision of services. Inventories are valued at the lower of cost
and net realisable value. Cost is determined by actual purchase price. Net realisable value is the estimated
selling price in the ordinary course of business, less estimated costs of completion and the estimated costs
necessary to make the sale.
(j) Trade and other receivables
Trade receivables (current), which generally have 30-day terms, are recognised initially at fair value less
expected credit loss and any allowance for impairment.
AASB 9 Financial Instruments requires the Group to record an allowance for ECL’s for all loans and other debt
financial assets not held at FVPL.
The Group’s ECL is based on an estimated percentage of past due receivables that are expected to default
based on historical experience.
(k) Cash and cash equivalents
Cash and cash equivalents in the statement of financial position comprise cash at bank, in hand and short-term
deposits with an original maturity 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.
For the purposes of the statement of cash flows, cash and cash equivalents consist of cash and cash equivalents
as defined above, net of outstanding bank overdrafts.
Cryosite Limited Annual Report 30 June 2021
25
Notes to the Financial Statements
For the Year Ended 30 June 2021
(l) Trade and other payables
Trade and other payables are carried at amortised costs and due to their short-term nature, they are not
discounted. They represent liabilities for goods and services provided to the Group prior to the end of the
financial year that are unpaid and arise when the Group becomes obliged to make future payments in respect
of the purchase of these goods and services. The amounts are unsecured and are usually paid within 30 days
of recognition.
(m) Employee leave benefits
Wages, Salaries and Annual Leave
Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled
within 12 months of the reporting date are recognised in provisions in respect of employees’ services up to the
reporting date. They are measured at the amounts expected to be paid when the liabilities are settled. Expenses
for non-accumulating sick leave are recognised when the leave is taken and are measured at the rates paid or
payable. Unused sick leave on termination of employment is forfeited.
Long Service Leave
The liability for long service leave is recognised and measured as the present value of expected future payments
to be made in respect of services provided by employees up to the reporting date using the projected unit
credit method.
Consideration is given to the expected future wage and salary levels, experience of employee departures, and
periods of service. Expected future payments are discounted using market yields at the reporting date on
national government bonds with terms to maturity and currencies that match, as closely as possible, the
estimated future cash outflows.
(n) Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past
event, it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the obligation.
Where the Group expects some or all of a provision to be reimbursed, the reimbursement is recognised as a
separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is
presented in the statement of comprehensive income net of any reimbursement.
If the effect of the time value of money is material, provisions are determined by discounting the expected
future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and,
where appropriate, the risks specific to the liability.
(o) Share-based payment transactions
The group provides benefits to employees including executive directors of the Group in the form of share-based
payment transactions, whereby the employees render services in exchange for rights over shares (‘equity-
settled transactions’) under the Cryosite Employee Incentive Plan (CEIP) or individually negotiated share-based
payment arrangements.
The cost of these equity-settled transactions with employees is measured by reference to the fair value at the
date at which they are granted. The fair value is determined using a Black Scholes model.
Cryosite Limited Annual Report 30 June 2021
26
Notes to the Financial Statements
For the Year Ended 30 June 2021
In valuing equity-settled transactions, no account is taken of any performance conditions, other than
conditions linked to the price of the shares of the Company (‘market conditions’).
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over
the period in which the performance conditions are fulfilled, ending on the date on which the relevant
employees become fully entitled to the award (‘vesting date’).
The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date
reflects:
(i)
(ii) the number of awards that, in the opinion of directors of the Group, will ultimately vest. This opinion is
the extent to which the vesting period has expired and
formed based on the best available information at balance date.
No adjustment is made for the likelihood of market performance conditions being met as the effect of these
conditions is included in the determination of fair value at grant date.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional
upon a market condition.
Where the terms of an equity-settled award are modified, as a minimum, an expense is recognised as if the
terms had not been modified. In addition, an expense is recognised for any increase in the value of the
transaction as a result of the modification, as measured at the date of modification.
Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any
expense not yet recognised for the award is recognised immediately. However, if a new award is substituted
for the cancelled award, and designated as a replacement award on the date that it was granted, the cancelled
and new award are treated as if they were a modification of the original award, as described in the previous
paragraph. In the case where outstanding equity-settled awards have expired, the relevant amounts in respect
to these awards in the share reserves are transferred to retained earnings.
(p) Right-of-use asset
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at
cost, which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments
made at or before the commencement date net of any lease incentives received, any initial direct costs
incurred, and, except where included in the cost of inventories, an estimate of costs expected to be incurred
for dismantling and removing the underlying asset, and restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the
estimated useful life of the asset, whichever is the shorter. Where the company expects to obtain ownership
of the leased asset at the end of the lease term, the depreciation is over its estimated useful life. Right-of use
assets are subject to impairment or adjusted for any remeasurement of lease liabilities.
The company has elected not to recognise a right-of-use asset and corresponding lease liability for short-term
leases with terms of 12 months or less and leases of low-value assets. Lease payments on these assets are
expensed to profit or loss as incurred.
Cryosite Limited Annual Report 30 June 2021
27
Notes to the Financial Statements
For the Year Ended 30 June 2021
(q) Lease liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at
the present value of the lease payments to be made over the term of the lease, discounted using the interest
rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing
rate. Lease payments comprise of fixed payments less any lease incentives receivable, variable lease payments
that depend on an index or a rate, amounts expected to be paid under residual value guarantees, exercise price
of a purchase option when the exercise of the option is reasonably certain to occur, and any anticipated
termination penalties. The variable lease payments that do not depend on an index or a rate are expensed in
the period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are
remeasured if there is a change in the following: future lease payments arising from a change in an index or a
rate used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When a
lease liability is remeasured, an adjustment is made to the corresponding right-of use asset, or to profit or loss
if the carrying amount of the right-of-use asset is fully written down.
(r) Revenue from contracts with customers
Rendering of services
The Group provides the following services:
-
-
specialist temperature-controlled storage, sourcing, labelling, status management, secondary
packaging, schedule drug distribution, destruction, returns and biological services and;
long term storage for cord blood and tissue samples.
The Group identified that the above services are distinct and have assessed the revenue recognition in
accordance with AASB 15 Revenue from Contracts with Customers separately.
Revenue from clinical trials and biological services logistics services
Revenue from clinical trials pertain to processing and distribution of samples for clinical testing. The Group has
assessed that each sample processed is distinct from each other and that asset is transferred to the customer
at the completion of the service. Accordingly, the Group assessed that the performance obligation is satisfied
at that point in time and revenue is recognised as and when the customer obtains control of the asset.
Revenue from cord blood and cord tissue storage
Under AASB 15, the Group assessed that the collection, processing and storage services for cord blood and
tissue samples constitute a single performance obligation because none of the services are distinct and
marketed independently of the others. In addition, it was determined that the performance obligation is
performed over time (i.e. throughout the storage contract period of 18 or 25 years). This resulted in the
recognition of "Deferred revenue" and "Deferred costs" in the statement of financial position that are
unwound to revenue and costs for the remaining contract period.
Interest revenue
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.
Cryosite Limited Annual Report 30 June 2021
28
Notes to the Financial Statements
For the Year Ended 30 June 2021
Dividend income
Dividends: revenue is recognised when the Company’s right to receive the payment is established.
Government assistance
Government assistance is not recognised until there is reasonable assurance that the Company will comply
with the conditions attaching to them and that the assistance will be received. Government assistance that is
receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate
financial support to the Company with no future related costs are recognised in profit or loss in the period in
which they become receivable.
(s) Income tax and other taxes
Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be
recovered from or paid to the taxation authorities based on the current period’s taxable income. The tax rates
and tax laws used to compute the amount are those that are enacted or substantively enacted by the balance
date.
Deferred income tax is provided on all temporary differences at the balance date between the tax bases of
assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax liabilities are recognised for all taxable temporary differences:
-
Except where the deferred income tax liability arises from the initial recognition of an asset or liability in
a transaction that is not a business combination and, at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss; and
-
-
In respect of taxable temporary differences associated with investments in subsidiaries, except where the
timing of the reversal of the temporary differences can be controlled and it is probable that the temporary
differences will not reverse in the foreseeable future. Deferred income tax assets are recognised for all
deductible temporary differences, carry-forward of unused tax assets and unused tax losses, to the extent
that it is probable that the taxable profit will be available against which the deductible temporary
differences, and the carry-forward of unused tax assets and unused tax losses can be utilised:
Except where the deferred income tax asset relating to the deductible temporary difference arises from
the initial recognition of an asset or liability in a transaction that is not a business combination and, at the
time of the transaction, affects neither the accounting profit nor taxable profit or loss; or
In respect of deductible temporary differences associated with investments in subsidiaries, associates and
interests in joint ventures, deferred tax assets are only recognised to the extent that it is probable that the
temporary differences will reverse in the foreseeable future and taxable profit will be available against which
the temporary differences can be utilised. The carrying amount of deferred income tax assets is reviewed at
each balance date and reduced to the extent that it is no longer probable that sufficient taxable profit will be
available to allow all or part of the deferred income tax asset to be utilised.
Unrecognised deferred income tax assets are reassessed at each balance date and are recognised to the extent
that it has become probable that future tax profit will allow the deferred tax asset to be recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year
when the asset is realised or the liability is settled, based on tax rates (and tax laws), that have been enacted
or substantively enacted at the balance date.
Cryosite Limited Annual Report 30 June 2021
29
Notes to the Financial Statements
For the Year Ended 30 June 2021
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off
current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to the same
taxable entity and the same taxation authority.
Income taxes relating to items recognised directly in equity are recognised in equity and not in the statement
of comprehensive income.
Revenues, expenses and assets are recognised net of the amount of GST except:
-
-
where the GST incurred on a purchase of goods and services is not recoverable from the taxation
authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of
the expense item as applicable; and
receivables and payables are stated with the amount of GST included the net amount of GST recoverable
from, or payable to, the taxation authority is included as part of receivables or payables in the statement
of financial position.
Cash flows are included in the Statement of Cash Flows on a gross basis and the GST component of cash flows
arising from investing and financing activities, which is recoverable from, or payable to, the taxation
authority, are classified as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the
taxation authority.
(t) Contributed equity
Contributed capital bares no special terms or conditions affecting income or capital entitlements of the
shareholders. Ordinary share capital is recognised at the fair value of the consideration received by the
company. Any transaction costs arising on the issue of ordinary shares are recognised directly in equity as a
reduction of the share proceeds received.
(u) Share options reserve
The share options reserve captures the equity component of the company’s equity settled transactions of the
share-based payments schemes.
(v) Impairment of assets
Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying
amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs
to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for
which there are separately identifiable cash inflows which are largely independent of the cash inflows from
other assets or groups of assets (cash-generating units). Non-financial assets that suffered impairment are
reviewed for possible reversal of the impairment at the end of each reporting period.
(w) Earnings per share
Basic EPS is calculated as net profit attributable to members of the parent, adjusted to exclude costs of servicing
equity (other than dividends) and preference share dividends, divided by the weighted average number of
ordinary shares, adjusted for any bonus element.
Cryosite Limited Annual Report 30 June 2021
30
Notes to the Financial Statements
For the Year Ended 30 June 2021
Diluted EPS is calculated as net profit attributable to members of the parent, adjusted for:
-
Costs of servicing equity (other than dividends) and preference share dividends;
-
The after-tax effect of dividends and interest associated with dilutive potential ordinary shares that have
been recognised as expenses; and
Other non-discretionary changes in revenues or expenses during the year that would result from the
dilution of potential ordinary shares
-
Divided by the weighted average number of ordinary shares and dilutive potential ordinary shares, adjusted
for any bonus element.
The basic EPS and diluted EPS are calculated as above based on net profit after tax.
(x) Fair value measurement
The Group measures financial instruments at fair value at each balance sheet date. Fair values of financial
instruments measured at amortised cost are disclosed at Note 32.
Fair value is the price that would be received to sell an asset or pair to transfer a liability in an orderly
transaction between market participants at the measurement date. The fair value measurement is based on
the presumption that the transaction to sell the asset or transfer the liability takes place either:
-
-
In the principle market for the asset or liability; or
In the absence of a principal market, in the most advantageous market for the asset or liability accessible
to the Group.
A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate
economic benefits by using the asset in its highest and best use or by selling it to another market participant
that would use the asset in the highest and best use. The Group uses valuation techniques that are appropriate
in the circumstances and for which sufficient data are available to measure fair value, maximising the use of
relevant observable inputs and minimising the use of unobservable inputs.
For the purpose of fair value disclosure, the Group has determined classes of assets and liabilities on the basis
of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy.
(y) Current versus non-current classification
The Group presents assets and liabilities in statement of financial position based on current/non-current
classification.
An asset as current when it is:
-
-
-
-
Expected to be realised or intended to sold or consumed in normal operating cycle;
Held primarily for the purpose of trading;
Expected to be realised within 12 months after the reporting period, or
Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least
twelve months after the reporting period.
All other assets are classified as noncurrent.
A liability is current when:
-
-
-
-
It is 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.
Cryosite Limited Annual Report 30 June 2021
31
Notes to the Financial Statements
For the Year Ended 30 June 2021
The Group classifies all other liabilities as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities.
3
SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS
The preparation of the financial statements requires management to make judgements, estimates 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 and estimates on historical experience and on other various factors it believes to be reasonable
under the circumstances, the result of which form the basis of the carrying values of assets and liabilities that
are not readily apparent from the source. Actual results may differ from these estimates and estimates under
different assumptions and conditions.
Management has identified the following critical accounting estimates and judgements:
Revenue from contracts with customers
The Group applied the following judgements that significantly affect the determination of the amount and
timing of revenue from contracts with customers:
· Determining the timing of satisfaction of performance obligations
The Group concluded that the revenue from collection, processing and storage of cord blood and tissue should
be recognised over time because the customer simultaneously receives and consumes the benefits provided
by the Group. The Group determined that the contract term of 18 or 25 years is the best method to determine
the timing of satisfaction of performance obligations.
·
Consideration of significant financing component in a contract
The storage contract for cord blood and cord tissue is either 18 or 25 years and the payment options available
to the customers follow:
i.
ii.
iii.
Upfront payment of the full contract price at inception of the contract;
Instalment payment of either 12 or 24 months; and,
Partial upfront settlement with the remaining balance paid in instalment throughout the life of the
contract (referred to by the Group as “Annual plans”).
Management determined that there is a significant financing component included in the annual plans because
the total amount paid under this plan is significantly higher than the upfront cash payment. The amount of
financing component attributed to the contract is determined as the difference between the total Annual plan
payments and the upfront cash payment.
·
Taxation
Uncertainties exist with respect to the interpretation of complex tax regulations, changes in tax laws and the
amount and timing of future taxable income. The group’s accounting policy for taxation requires management’s
judgement as to the types of arrangements considered to be a tax on income in contrast to an operating cost.
Judgement is also required in assessing whether deferred tax assets and certain deferred tax liabilities are
recognised in the statement of financial position. Deferred tax assets, including those arising from carry forward
tax losses, capital losses and temporary differences, are recognised only where it is considered more likely than
not that they will be recovered, which is dependent on the generation of sufficient future taxable profits.
Cryosite Limited Annual Report 30 June 2021
32
Notes to the Financial Statements
For the Year Ended 30 June 2021
The Group has unconfirmed tax losses arising in Australia of $2,509,170 (2020 $2,015,919), of which $231,429
(2020 $231,429) have been recognised, that are available for offset against future taxable profits of the
company. The tax rate of Cryosite had been changed from 27.5% (June 2020) to 26% (June 2021).
Assumptions about the generation of future taxable profits and repatriation of retained earnings depend on
management’s estimates of future cash flows. Judgements are also required about the application of income
tax legislation. These judgements and assumptions are subject to risk and uncertainty, hence there is a
possibility that changes in circumstances will alter expectations, which may impact on the amount of deferred
tax liabilities or assets recognised on the statement of financial position and the amount of other tax losses
and temporary differences not yet recognised. In such circumstances, some or all of the carrying amounts of
recognised deferred tax assets and liabilities may require adjustment, resulting in a corresponding credit or
charge to the statement of comprehensive income.
·
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 using a Black
Scholes model. 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 on expenses and equity.
·
Estimated Useful Lives of Assets
The estimation of the useful lives of assets and their residual values has been based on historical experience
as well as manufacturers’ warranties. In addition, the condition of assets is assessed at least once per year
and considered against the remaining useful life. Adjustments to useful lives are made when considered
necessary. The estimated useful life of licenses acquired has been based upon the useful life of the patents
and associated methodologies underpinning the license. The assessment of useful life is reviewed annually
by the Board to determine whether the assumptions made continue to be appropriate and supportable given
the license conditions and underlying patents. If the useful life assessment is assessed as inappropriate, either
due to a change in license conditions or patents, it is changed on a prospective basis.
·
Long Service Leave Provision
The liability for long service leave is recognised and measured at the present value of the estimated future
cash flows to be made in respect of all employees at the reporting date. In determining the present value of
the liability, estimates of attrition rates and pay increases through promotion and inflation have been taken
into account.
· Make Good Provisions
includes
A provision has been made for the present value of anticipated costs for future restoration of leased
premises. This provision
future cost estimates associated with dismantling, closure,
decontamination and permanent storage of historical residues. The calculation of any provision requires
assumptions such as application of environmental legislation, plant closure dates, available technologies and
engineering cost estimates. These uncertainties may result in future actual expenditure differing from
amounts provided. Any provision recognised will be periodically reviewed and updated based on the facts
and circumstances available at the time. Changes to the estimated future costs are recognised in the
statement of financial position by adjusting both the expense or asset and provision. The appropriateness of
the make good provision is assessed annually.
Cryosite Limited Annual Report 30 June 2021
33
Notes to the Financial Statements
For the Year Ended 30 June 2021
·
Impairment for expected credit losses on trade receivables
In accordance with AASB 9, the Group uses a provision matrix to calculate ECLs (expected credit losses) for
trade receivables and contract assets. The provision rates are based on days past due for groupings of various
customer segments that have similar loss patterns (i.e., by geography, product type, customer type and rating,
and coverage by letters of credit and other forms of credit insurance).
The provision matrix is initially based on the Group’s historical observed default rates. The Group will calibrate
the matrix to adjust the historical credit loss experience with forward-looking information. At every reporting
date, the historical observed default rates are updated and changes in the forward-looking estimates are
analysed. The amount of ECLs is sensitive to changes in circumstances and of forecast economic conditions.
The Group’s historical credit loss experience and forecast of economic conditions may also not be
representative of customer’s actual default in the future
·
Impairment of Non-Financial Assets other than Indefinite Life Intangible Assets
The Company assesses impairment of non-financial assets other than indefinite life intangible assets at each
reporting date by evaluating conditions specific to the Company and to the particular asset that may lead to
impairment. If an impairment trigger exists, the recoverable amount of the asset is determined. This involves
fair value less costs of disposal or value-in-use calculations, which incorporate a number of key estimates and
assumptions.
4
LEASE AASB 16
The entity leases the premises housing its principle place of business. From 1 July 2019, in line with AASB 16,
leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leased asset
is available for use by the Group. Each lease payment is allocated between the liability and finance cost. The
right-of-use asset is amortised over the lease term on a straight-line basis.
Lease liabilities have been measured at the present value of the remaining lease payments, discounted using
the RBA June 2019 Lending Rate - Small business variable rate as of 1 July 2019.
The recognised right-of-use assets relates to property and is comprised as follows:
Property right of use recognised at beginning of the period
Depreciation expense for the year
Lease Asset as at the end of the period
At 1 July
Accretion of interest
Payments
At 30 June
Lease liability – current
Lease liability – non-current
Total Liabilities
2021
$
1,213,340
(227,501)
985,839
2020
$
1,440,841
(227,501)
1,213,430
2021
$
1,262,319
63,476
(260,777)
2020
$
1,440,841
76,078
(254,600)
1,065,018
1,262,319
215,253
849,765
197,301
1,065,018
1,065,018
1,262,319
Cryosite Limited Annual Report 30 June 2021
34
Notes to the Financial Statements
For the Year Ended 30 June 2021
5
SEGMENT INFORMATION
Identification of Reportable Segments
The Company has identified its operating segments based on the internal reports that are reviewed and used
by the Board of Directors (the chief operating decision makers) in assessing performance and in determining
the allocation of resources. The segment information provided is consistent with the internal management
reporting.
Two reportable segments have been identified as follows:
Clinical Trials and Biological Services Logistics Specialist temperature-controlled storage, sourcing, labelling,
status management, secondary packaging, schedule drug
distribution, destruction, returns and biological services.
Storage of cord blood and tissue samples.
Cord Blood and Tissue Storage
The accounting policies used by the Company in reporting segments internally are the same as those contained
in note 1 to the accounts.
Operating Segments
2021
Operating Segment
Clinical Trials
and Biological
Storage and
Logistics
$
Cord Blood
and Tissue
$
Unallocated
$
Total
$
Revenue
7,504,620
2,519,149
8,194
10,031,963
Net operating profit
Government incentive - cash boost
Net profit before tax
Tax
Net profit after tax
Total Comprehensive Income net of tax
3,141,304
-
3,141,304
-
3,141,304
3,141,304
756,679
-
756,679
(312,799)
443,880
443,880
(2,827,535)
50,000
(2,777,535)
(155,075)
(2,932,610)
(2,932,610)
1,070,448
50,000
1,120,448
(467,874)
652,574
652,574
Segment Assets 30 June 2021
Segment Liabilities 30 June 2021
Depreciation and Amortisation
2,546,729
642,937
(301,748)
13,639,225
18,664,422
(4,066)
5,806,901
2,307,953
(283,284)
21,992,855
21,615,312
(589,098)
Cryosite Limited Annual Report 30 June 2021
35
Notes to the Financial Statements
For the Year Ended 30 June 2021
5
SEGMENT INFORMATION (continued)
Operating Segments
2020
Operating Segment
Clinical Trials
and Biological
Storage and
Logistics
$
Cord Blood
and Tissue
$
Unallocated
$
Total
$
Revenue
6,234,092
2,685,754
94,338
9,014,184
Net operating profit
Legal claim
Government incentive - cash boost
Net profit before tax
Tax
Net profit after tax
Total Comprehensive Income net of tax
2,900,935
-
-
2,900,935
-
2,900,935
2,900,935
894,717
-
-
894,717
(238,572)
656,145
656,145
(3,039,129)
958,984
50,000
(2,030,145
(46,756)
(2,076,901)
(2,076,901)
756,523
958,984
50,000
1,765,507
(285,328)
1,480,179
1,480,179
Segment Assets 30 June 2020
Segment Liabilities 30 June 2020
Depreciation and Amortisation
1,680,568
459,760
(60,499)
13,860,462
20,744,170
(98,284)
7,960,876
2,584,783
(278,771)
23,501,905
23,788,713
(437,554)
6
REVENUE
Customer contract revenues
Revenue from clinical trials, logistics and biological services
Revenue from cord blood and tissue storage
Other revenue
Bank interest
Government incentive – cash boost
7
EXPENSES
(a) Legal costs
Continuing operations
Legal Claim
Total
Consolidated
2021
$
2020
$
7,504,620
2,519,149
10,023,769
8,194
50,000
58,194
10,081,963
6,234,092
2,685,754
8,919,846
44,338
50,000
94,338
9,014,184
Consolidated
2021
$
47,898
-
47,898
2020
$
57,816
41,017
98,833
34
Cryosite Limited Annual Report 30 June 2021
36
Notes to the Financial Statements
For the Year Ended 30 June 2021
7
EXPENSES (continued)
(b) Employee benefits expense
Salaries
Superannuation costs
(c) Depreciation – plant & equipment
(d) Amortisation of Intangibles
(e) Amortisation of Leases
(f) Finance Costs
8
INCOME TAX
Income tax expense
(a)
The major components of income tax are:
Consolidated
2021
$
2020
$
1,839,152
165,104
2,004,256
1,965,815
182,769
2,148,584
18
19
4
4
357,531
203,075
4,066
6,978
227,501
227,501
108,673
114,314
Statement of comprehensive income
Current income tax (expense)/benefit
Income tax expense reported in the statement of comprehensive income
Income tax (expense)/benefit is attributable to the following:
Continuing operations
Under provision prior year
Consolidated
2021
$
(467,874)
(467,874)
2020
$
(285,328)
(285,328)
(519,874)
52,000
(467,874)
(277,735)
(7,593)
(285,328)
(b) Numerical reconciliation between aggregate tax expense recognised in the statement of
comprehensive income and tax expense calculated per the statutory income tax rate
A reconciliation between tax expense and the product of accounting profit before income tax multiplied by the
Group's applicable income tax rate follows:
Accounting profit(loss) before tax
Income tax calculated at 26% (2020:27.5%)
Tax losses recognized (2020: Tax losses recouped)
Change to 26% tax rate (from 27.5%)
Other items
Under provision prior year
Income tax (expense) benefit
1,120,448
(291,316)
(94,328)
(117,142)
(17,088)
52,000
(467,874)
1,715,508
(471,765)
(111,056)
-
82,974
(7,593)
(285,328)
Cryosite Limited Annual Report 30 June 2021
37
Notes to the Financial Statements
For the Year Ended 30 June 2021
8
INCOME TAX (continued)
(c) Deferred tax assets, net
Deferred income tax at 30 June relates to the following:
Deferred taxes arising from AASB 15 adoption
Deferred tax asset on deferred revenue
Deferred tax liability on deferred costs
Net deferred tax asset – AASB 15
Deferred taxes arising from normal business operations
Post-employment benefits
Provision for tax and audit fees
Provision for doubtful debts
Provision for make good
Superannuation Payable
Accruals
Lease Liability
Tax Losses carried forward
Impairment and depreciation of plant & equipment
Prepayments
Consumables
Section 40-880
Net deferred tax asset – normal operations
Consolidated
2021
$
2020
$
4,718,337
(3,093,945)
1,624,392
5,576,089
(3,638,897)
1,937,192
72,606
-
-
52,000
4,073
17,338
20,587
60,171
(109,886)
(104,665)
23,137
7,513
42,874
60,287
17,582
46,494
-
2,750
5,363
13,661
63,643
1,336
-
(13,167)
-
197,949
Net deferred tax assets
1,667,266
2,135,141
(d) Tax (expense) benefit related to items of other comprehensive income.
There were no items of comprehensive income during the year giving rise to any income expense (benefit).
(e) DTA Opening Balance Adjustment
Cryosite had a net Deferred Tax Assets- AASB15 of $1,937,192 as at 30 Jun 2020. $105,665 was taken to Profit
and Loss for the current year to reflect a change in tax rate change from 27.5% in FY20 to 26% in FY21.
(f) Tax losses
The Group has unconfirmed tax losses arising in Australia of $2,509,170 (2020: $2,015,919), of which
$231,429 (2020: $231,429) have been brought to account as a deferred tax asset that are available for offset
against future taxable profits of the company. The unrecognized deferred income tax asset of $420,955 (2020:
$490,735 arising from these losses has not been brought to account at reporting date, as realisation of the
benefit is not probable at this point in time. The Group will continue to review this regularly to determine
whether to recognize these tax losses as deferred tax asset in the future.
Tax consolidation
Effective from 1 July 2002, Cryosite Limited and its 100% owned subsidiary formed a tax consolidated group.
On formation of the tax consolidated group, the entities in the tax consolidated group agreed to enter into a
tax sharing deed which will, in the opinion of the directors, limit the joint and several liabilities of the wholly-
owned entities in the case of default by the head entity Cryosite Limited. The tax sharing deed was signed on
12 May 2011.
Cryosite Limited Annual Report 30 June 2021
38
Notes to the Financial Statements
For the Year Ended 30 June 2021
8
INCOME TAX (continued)
The entities have also agreed to enter into a tax funding agreement under which the wholly-owned entities
fully compensate the Company for any current tax payable assumed and are compensated by the Company
for any current tax loss, deferred tax assets and tax credits that are transferred to the Company under the
tax consolidation legislation. The tax consolidated current tax liability or current year tax loss and other
deferred tax assets are required to be allocated to the members of the tax consolidated group in accordance
with UIG 1052. The group uses a group allocation method for this purpose where the allocated current tax
payable, current tax loss, deferred tax assets and other tax credits for each member of the tax consolidated
group is determined as if the company is a stand-alone taxpayer but modified as necessary to recognise
membership of a tax consolidated group. The funding amounts are determined by reference to the amounts
recognised in the wholly-owned entities’ financial statements which is determined having regard to
membership of the tax consolidated group.
The amounts receivable/payable under the tax funding agreement are due upon receipt of the funding advice
from the head entity, which is issued as soon as practicable after the end of each financial year. The head
entity may also require payment of interim funding amounts to assist with its obligations to pay tax
instalments. The funding amounts are recognised as current inter-company receivables or payables.
9
EARNINGS PER SHARE
The following reflects the income used in the basic and diluted
earnings per share computations:
Basic earnings per share
Diluted earnings per share
Basic EPS disclosure
Earnings used in EPS calculation
Net profit attributable to ordinary equity holders of the parent
Weighted average number of ordinary shares for basic earnings
per share
Diluted EPS disclosure
Earnings used in diluted EPS calculation
Net profit attributable to ordinary equity holders of the parent
Weighted average number of ordinary shares for basic earnings
per share
Options
Weighted average number of ordinary shares used in the calculation of diluted
EPS
Consolidated
2021
$
2020
$
1.39
1.34
3.16
3.03
652,574
1,480,179
No. of shares
46,859,563
46,859,563
652,574
1,480,179
No. of shares
46,859,563
1,950,000
46,859,563
1,950,000
48,809,563
48,809,563
There have been no other transactions involving ordinary shares or potential ordinary shares since the
reporting date and before completion of these financial statements.
Cryosite Limited Annual Report 30 June 2021
39
Notes to the Financial Statements
For the Year Ended 30 June 2021
10 CASH AND CASH EQUIVALENTS
Cash at bank and on hand
Short-term deposit
Total Cash and Cash Equivalents
Consolidated
2021
$
1,881,126
2,000,000
3,881,126
2020
$
60,076
4,001,756
4,061,832
Cash at bank and on hand earns interest at floating rates based on daily bank deposit rates. Short-term
deposits are made for varying periods of between one day and six months depending on the immediate cash
requirements of the group and earn interest at the respective short-term deposit rates.
The fair value of cash and cash equivalents for the consolidated group and parent entity is $3,881,126 (2020:
$4,061,832).
11 STATEMENT OF CASH FLOW RECONCILIATION
Reconciliation of the net profit after tax to the net cash
flows from operations
Net profit
Less: Transfer to investing activities
Adjustments for non-cash items
Depreciation and amortisation of non-current assets
Amortisation of intangibles
Interest Expense on lease and ACCC
Provision for dividend
Foreign exchange
Other Equity
Changes in assets and liabilities
(Increase) Decrease in trade and other receivables
Decrease (Increase) in deferred tax asset – AASB 15
Decrease (Increase) in deferred costs – AASB 15
Increase (Decrease) in deferred tax liability -AASB 15
Increase (Decrease) in deferred revenue -AASB 15
Decrease (Increase) in inventory
Decrease (Increase) in prepayments
Decrease (Increase) in other current assets
Decrease in deferred tax asset
Decrease (Increase) in other assets
Increase (Decrease) in trade and other creditors
Increase (Decrease) in current other liabilities
Increase (Decrease) in non- current other liabilities
Decrease (Increase) in unearned income
Increase (Decrease) in income tax provision
Increase (Decrease) in lease assets
Increase in employee benefits
Net cash flow from operating activities
Consolidated
2021
$
2020
$
652,574
(9,987)
1,480,179
-
585,032
4,066
108,673
-
42,288
11,776
(974,095)
857,752
1,332,576
(544,952)
(2,129,232)
-
(48,884)
(5,892)
155,075
108,023
242,824
53,330
(103,642)
87,841
-
30,200
60,028
488,801
437,554
-
114,313
(1,402)
28,694
(50,916)
(446,935)
618,884
1,381,185
(379,823)
(2,250,133)
(25,021)
(74,303)
(12,571)
38,033
308,325
113,879
-
(47,463)
55,626
29,759
-
27,004
1,316,173
Cryosite Limited Annual Report 30 June 2021
40
Notes to the Financial Statements
For the Year Ended 30 June 2021
12
TRADE AND OTHER RECEIVABLES – CURRENT
Trade receivables
Allowance for impairment loss
(a)
Other receivables
Carrying amount of trade and other receivables
(a) Allowance for impairment loss
Consolidated
2021
$
2020
$
1,608,337
(88,990)
1,519,347
150,887
1,670,234
913,350
(169,068)
744,282
218,435
962,717
Trade receivables (current), which generally have 30-day terms, are recognised initially at fair value less an
allowance for impairment as per AASB 9 requirements.
As per AASB 9, the Group’s accounting for impairment losses for financial assets is based on a forward-looking
expected credit loss (ECL) approach. The Group’s ECL is based on an estimated percentage of past due
receivables that are expected to default based on historical experience.
Movements in the provision for impairment loss were as follows:
Balance at the beginning of the period
Increase (reduction) in impairment
Balance at end of period
Consolidated
2021
$
169,068
(80,078)
88,990
2020
$
73,475
95,593
169,068
(b) Analysis of trade receivables aging and allowance for expected credit losses.
2021
Current
Non-Current 16
Total Consolidated
Expected Credit Loss Rate
Total Provision Calculated
2020
Current
Non-Current
Total Consolidated
Expected Credit Loss Rate
Total Provision Calculated
Total
$
Not
yet
Due
$
0-30
Days
$
31-60
Days
$
61-90
Days
$
1,657,162 778,460
80,251
80,251
599,474
-
1,737,413 858,711
3.5%
30,180
5.1%
88,990
599,474
1.8%
11,085
120,796
-
120,796
2.9%
3,480
117,480
-
117,480
2.8%
3,293
+91
Days
$
40,952
-
40,952
100.0
%
40,952
913,350 643,684
138,253 138,253
1,051,603 782,367
8.8%
70,801
15.7%
169,593
161,150
-
161,150
2.1%
3,395
13,207
-
13,207
19.8%
2,620
8,257
-
8,257
60.1%
3,805
87,052
-
87,052
100.0
%
88,972
Cryosite Limited Annual Report 30 June 2021
41
Notes to the Financial Statements
For the Year Ended 30 June 2021
12 TRADE AND OTHER RECEIVABLES – CURRENT (continued)
The impairment loss is based on ECL and not specific to certain debtors.
Other balances within trade and other receivables do not contain impaired assets and are not past due. It
is expected that these other balances will be received when due.
(c) Fair value and credit risk
Due to the nature of these receivables, their carrying value is assumed to approximate their fair value. The
maximum exposure to credit risk is the fair value of receivables. Collateral is not held as security, nor is it the
Group’s policy to transfer (on-sell) receivables to special purpose entities.
13
INVENTORIES
Inventories at cost
Total Inventories at cost
14 PREPAYMENTS
Current
Balance at beginning of period
Additions (reductions) during the year
Balance at end of period
Non-current
Balance at beginning of period
Additions (reductions) during the year
Balance at end of period
15 OTHER ASSETS – CURRENT AND NON-CURRENT
Capital expenditure deposit/ Bank guarantee security
deposit current
Bank guarantee security deposit non- current
Total
16 TRADE AND OTHER RECEIVABLES – NON-CURRENT
Trade receivables due under term payment plans
Total
Consolidated
2021
$
52,508
52,508
2020
$
47,880
47,880
Consolidated
2021
$
2020
$
353,672
33,645
387,317
279,369
74,303
353,672
-
15,239
15,239
-
-
-
Consolidated
2021
$
5,892
167,937
173,829
2020
$
167,937
-
167,937
Consolidated
2021
$
80,251
80,251
2020
$
138,252
138,252
For analysis of maximum exposure to credit risk at the time of reporting refer to Note 12(b)
Cryosite Limited Annual Report 30 June 2021
42
Notes to the Financial Statements
For the Year Ended 30 June 2021
17
INVESTMENT IN CONTROLLED ENTITY
Name – Cryosite Distribution Pty Limited
Equity interest held by the
consolidated entity
Investment
2021
%
2020
%
2021
$
2020
$
Country of incorporation – Australia
100
100
20
20
18 PLANT AND EQUIPMENT
Leasehold
Improvements
Fixtures
and fittings
Information
Technology
Warehouse
Equipment
Office
furniture &
equipment
$
$
$
$
$
Total
$
211,613
133,829
263,378
4,339,197
31,254
4,979,271
19,854
(200,000)
31,467
84,058
-
-
-
87,967
866,155
10,382
984,358
(160,515)
(1,006,968)
-
(1,367,484)
133,829
190,829
4,198,384
41,636
4,596,145
19,723
49,386
293,581
418
447,169
-
(53,219)
(999,792)
(5,905)
(1,058,916)
Cost
At 1 July 2019
Additions
Disposals
At 30 June 2020
Additions
Disposals
At 30 June 2021
115,525
153,552
186,999
3,492,173
36,149
3,984,398
Depreciation and Impairment
At 1 July 2019
Depreciation charge
Disposals
At 30 June 2020
Depreciation charge
Disposals
At 30 June 2021
(202,946)
(85,890)
(249,245)
(4,033,080)
(20,839)
(4,592,090)
(2,223)
(6,994)
(12,630)
(169,339)
(11,890)
(203,076)
200,000
-
160,516
1,006,968
-
1,367,484
(5,169)
(92,974)
(101,359)
(3,195,451)
(32,729)
(3,427,682)
(15,485)
(6,853)
(27,612)
(300,554)
(7,027)
(357,531)
-
-
53,219
904,909
5,905
964,033
(20,654)
(99,827)
(75,752)
(2,591,096)
(33,851)
(2,821,180)
Net Book Value - 30 June 2020
Net Book Value - 30 June 2021
26,298
94,871
40,856
53,725
89,470
1,002,933
8,907
1,168,465
111,247
901,077
2,298
1,163,218
Cryosite Limited Annual Report 30 June 2021
43
Notes to the Financial Statements
For the Year Ended 30 June 2021
19
INTANGIBLE ASSETS
Cost
At 30 June 2020
Additions
At 30 June 2021
Amortisation and impairment
At 30 June 2020
Amortisation
At 30 June 2021
Net book value – 30 June 2020
Net book value – 30 June 2021
Software Development
Software
$
20,317
-
20,317
-
(4,066)
(4,066)
Total
$
20,317
-
20,317
-
(4,066)
(4,066)
20,317
20,317
16,251
16,251
During the previous financial year the company developed, validated and constructed a new Cord Blood
database. The costs have been capitalised in line with accounting policies and are amortised over a 5-year
period.
20 DEFERRED COSTS
Current
Non-current
Consolidated
2021
$
2020
$
1,295,890
10,603,887
1,332,574
11,899,778
11,899,777
13,232,352
Deferred costs represent upfront costs, such as laboratory fees, attributable for the collection and processing
of cord blood and tissue samples. These are capitalised and amortised over the remaining life of the storage
contracts as required under AASB 15.
21 TRADE AND OTHER PAYABLES
CURRENT LIABILTIES
Trade payables
Other payables
Total current payables
NON-CURRENT LIABILTIES
Client deposits
Total non-current payables
Consolidated
2021
$
2020
$
627,267
160,272
787,539
389,339
342,624
731,963
441,682
441,682
441,682
441,682
Cryosite Limited Annual Report 30 June 2021
44
Notes to the Financial Statements
For the Year Ended 30 June 2021
21 TRADE AND OTHER PAYABLES (continued)
Fair value
Trade payables are non-interest bearing and are normally settled on 30 to 90-day terms. Therefore, their
carrying value is assumed to be their fair value.
Other payables are non-interest bearing and are on ranging from 30 days to 12-month terms. Their carrying
value is assumed to be fair value.
At 30 June, the ageing analysis of trade payables is as follows:
Total
$
Not yet due
$
0-30
Days
$
31-60
Days
$
61-90
Days
$
Over 90
Days
$
2021
Consolidated
2020
Consolidated
627,267
73,683
487,892
-
389,339
-
260,306
129,428
-
-
65,692
-
Other balances within trade and other payables are not past due. It is expected that these other balances will
be paid.
22 UNEARNED INCOME
Current
Non-current
23 DEFERRED REVENUE
Current
Non-current
24 PROVISIONS
Current
Annual leave
Long service leave
Consolidated
2021
$
138,385
28,148
166,533
2020
$
78,692
-
78,692
Consolidated
2021
$
2,047,829
16,099,625
18,147,454
2020
$
2,129,237
18,147,450
20,276,687
Consolidated
2021
$
164,715
70,815
235,530
2020
$
124,941
53,322
178,263
Cryosite Limited Annual Report 30 June 2021
45
Notes to the Financial Statements
For the Year Ended 30 June 2021
24
PROVISIONS (continued)
Non-current
Long service leave
Lease make good
Movements in provisions
Annual leave
Balance at beginning of the year
Arising /(taken) during the year
Long Service Leave
Balance at beginning of the year
Arising / (taken) during the year
Consolidated
2021
$
2020
$
43,724
200,000
243,724
40,963
200,000
240,963
124,941
39,774
164,715
94,285
20,254
114,539
130,403
(5,462)
124,941
61,818
32,467
94,285
Nature and timing of long service leave provision is based on the accounting policy and the significant
estimations and assumptions applied in the measurement of this provision as in Note 3.
Nature and timing of lease make-good provision
In June 2019 the current lease agreement with Allsup Pty Limited for the premises in Granville, was extended
until 31 October 2025. The make good provision remains at $200,000 in respect of the Group’s obligation to
reflect this arrangement regarding the leased premises. Because of the long-term nature of the liability, there
is uncertainty in estimating the actual cost that may ultimately be incurred and any impacts on this of
renegotiated terms at the time of lease expiry.
For the relevant accounting policy and the significant estimations and assumptions applied in the
measurement of this provision refer to Note 3.
25 CONTRIBUTED EQUITY AND ACCUMULATED LOSSES
Ordinary shares
Movement in ordinary shares on issue
Beginning of the financial year
End of the financial year
Terms of conditions of contributed equity
Consolidated
2021
$
5,861,788
2020
$
5,861,788
2021
2020
Shares No.
46,859,563
46,859,563
$
5,861,788
5,861,788
Shares No.
46,859,563
46,859,563
$
5,861,788
5,861,788
Ordinary shares carry the right to receive dividends and entitle their holder to one vote, either in person or
by proxy, at a meeting of the Company.
Cryosite Limited Annual Report 30 June 2021
46
Notes to the Financial Statements
For the Year Ended 30 June 2021
25 CONTRIBUTED EQUITY AND ACCUMULATED LOSSES (continued)
Movement in accumulated losses
Balance at the beginning of the year
Net profit for the year
Balance at the end of the year
26 RESERVES
Share options reserve
Balance at the end of year
Movement in share options/rights reserve
Balance at the beginning of the year
Performance rights/options granted
Performance rights/options cancelled
Balance at the end of the year
Consolidated
2021
$
(6,167,211)
652,574
(5,514,637)
2020
$
(7,647,390)
1,480,179
(6,167,211)
Consolidated
2021
$
30,392
30,392
2020
$
18,616
18,616
Consolidated
2021
$
18,616
11,776
-
30,392
2020
$
69,532
29,198
(80,114)
18,616
The purpose of the share rights reserve is to record the value of share-based payments provided to employees
as part of their remuneration. Refer to Note 30 for further details of these plans.
27 COMMITMENTS AND CONTINGENCIES
(a) Operating lease commitments – Group as lessee
Group as lessee
Commercial Property Security deposits
The security deposit for the lease at Granville is covered by a bank guarantee for $167,937 issued by the
Commonwealth Bank of Australia. Cash deposit is held as security as per note 15.
(b) Plant and equipment commitments
Cryosite has committed $760k in capital expenditure in the 2022 financial year to accommodate the need of
new business lines. The capital investments includes one high-quality freezer room, a vault, a humidity
controller Box and a fort lift.
Cryosite Limited Annual Report 30 June 2021
47
Notes to the Financial Statements
For the Year Ended 30 June 2021
(c) Contingent Liabilities
The Group is not aware of any contingent liabilities at reporting date.
28 AUDITORS REMUNERATION
Amounts received or due and receivable by Mazars for:
- Audit or review of the financial report of the entity and any other entity
in the consolidated group.
- Other services in relation to the entity and any other entity in the
consolidated group.
Consolidated
2021
$
2020
$
71,000
71,002
7,300
78,300
5,300
76,302
29 RELATED PARTY DISCLOSURES
During the financial year, payments were made to CoSA Life Science Pty Limited (“CoSA”), an entity related to
Mr Bryan Dulhunty. During the year, Cryosite paid CoSA $100,006 (2020: $150,012) for services provided,
including an Executive Director fee (July-Oct 2021) of $25,006 and a Company Secretary fee of $25,000 and an
incentive payment of $50,000.
During the prior financial year, payments were made to MGW Capital Pty Ltd (“MGW”), an entity related to
Mrs Nicola Swift. Cryosite paid $Nil to MGW in the current financial year (2020: $40,000).
Parent Entity
The consolidated financial statements include the financial statements of Cryosite Limited and its wholly
owned subsidiary Cryosite Distribution Pty Limited. For details, refer to Note 17.Cryosite Limited is the ultimate
parent entity.
Cryosite Distribution Pty Limited neither has a bank account nor does it hold any cash in its own right. All
receipts and payments for this entity are made by Cryosite Limited, with the amounts charged against an inter-
company loan account. No interest is payable on this balance and no amounts are due and payable.
Cryosite Limited and Cryosite Distribution Pty Limited are part of a tax consolidation group and have entered
into a tax funding agreement. Under this agreement, payments are to be made for tax losses transferred
between entities in the group. Refer to Note 8.
Cryosite Limited received a dividend from Cryosite Distribution Pty Limited in the previous financial year
totaling $36,992. No dividend was paid in the financial year ended 30 June 2021.
Cryosite Limited Annual Report 30 June 2021
48
Notes to the Financial Statements
For the Year Ended 30 June 2021
30 SHARE-BASED PAYMENTS EXPENSE
Total Expense (income) recognized in the profit and loss
relating to share based payments:
Options
Performance rights
Consolidated
2021
$
2020
$
11,775
-
11,775
18,615
(69,312)
(50,916)
Long Term Incentive Plan: Cryosite Employee Incentive Plan (CEIP)
On the 23rd February 2017, the Cryosite Employee Incentive Plan (CEIP) was established by the Company. On
invitation, the CEIP provides executives the opportunity to receive a long-term equity-based incentive in each
financial year and is governed by the CEIP Plan Rules.
Full details of the performance rights and options issued to executives are noted in the remuneration report
which forms part of the Directors’ Report.
Options
There were no options granted during the 2021
year.
Key management
personnel
No
Staff
No
Options granted 27th June 2019
Balance granted as at 30th June 2021
Options cancelled in June 2021
Balance as at 30th June 2021
1,950,000
1,950,000
-
1,950,000
Total
No
1,950,000
1,950,000
-
1,950,000
-
-
-
-
The following components of the CEIP for options are as follows;
Vesting date
Option price
Vesting conditions
Performance conditions
Service conditions
Expiry date
Exercise of Options
Conditions of options
Grant date
Vesting date
Expiry date
Period
Exercise price
Up to 25 months from date of grant.
6 cents
Options will only vest after certain performance and conditions are met.
Earnings per Share (EPS), Positive operating cashflow
Continuous employment with Cryosite from the date of the options
are granted until the vesting date.
Options will expire 36 months after the vesting date.
Any options which meet the Vesting conditions will be available for
exercise up until the Expiry date.
27 June 2019
1 September 2021
1 September 2024
27/6/2019 to 1/9/2021
6 cents
Cryosite Limited Annual Report 30 June 2021
49
Notes to the Financial Statements
For the Year Ended 30 June 2021
30 SHARE-BASED PAYMENTS EXPENSE (continued)
Targets for options
Target date
30 June 2021
30 June 2021
30 June 2021
Percentage of Performance
Rights that vest
33.3%
33.3%
33.3%
Conditions of Vesting
Positive Earnings per share (EPS)*
Positive Cashflow from Operations*
Continuous service
* Based on the 2021 audited accounts
As at 30 June 2021, no options had vested.
31 KEY MANAGEMENT PERSONNEL
(a) Key Management Personnel
Directors
Mr. Bryan Dulhunty * Non-Executive Chairman
Mr. Andrew Kroger
Mrs. Nicola Swift
Non-Executive Director
Non-Executive Director
Executive
Mr. John Hogg (appointed on 15th October 2020)
Jane Hao (appointed on 8th of January 2021)
Chief Executive Officer
Chief Financial Officer
* On 15th Oct 2020 Mr. Bryan Dulhunty stepped down from his executive Chairman’s role to non-executive Chairman.
(b) Compensation for key management personnel
Directors
Short-term employee benefits*(1)
Post-employment benefits
Share base payments
Sub-total directors
Key Management Personnel
Short-term employee benefits
Post-employment benefits
Share base payments
Sub-total key management personnel
Total compensation
Consolidated
2021
$
2020
$
305,006
19,475
7,850
332,331
285,438
28,317
3,925
317,680
650,011
358,345
15,992
5,017
379,354
62,042
5,506
-
67,548
446,902
*This includes payments made to CoSA Pty which is a party related to Bryan Dulhunty. During the year, Cryosite paid CoSA
$100,006 (2020: $150,012) including the Executive Director fee (July-Oct 2021) $25,006, Company Secretary fee $25,000
and the incentive payment of $50,000.
Cryosite Limited Annual Report 30 June 2021
50
Notes to the Financial Statements
For the Year Ended 30 June 2021
32 FINANCIAL INSTRUMENTS
The Group’s principal financial liabilities comprise of trade payables. The Group has various financial assets
such as trade receivables, cash and short-term deposits, which arise directly from its operations.
The Group does not enter into any derivative transactions. The main risks arising from the Group’s financial
instruments are cash flow interest rate risk and credit risk. The Board of Directors reviews and monitors each
of these risks.
(a) Interest rate risk
The Group’s exposure to the risk of changes in market interest rates relates primarily to:
-
-
cash and cash deposits with floating interest rates; and
assessments of appropriate discount rates for deferred arrangements.
The consolidated entity's exposure to interest rate risk and the effective weighted average interest rate for
classes of financial assets is set out below:
2021
Note
Financial assets
Interest bearing deposits
Cash and equivalents
Other assets non current
Current receivables
Non-Current receivables
Total
Financial Labilities
Trade creditors and accruals
2020
Note
Financial assets
Interest bearing deposits
Cash and equivalents
Other assets
Current receivables
Non-Current receivables
Total
Financial Labilities
Trade creditors and accruals
10
10
15
12
16
21
10
10
15
12
16
21
Weighted
average
effective
interest
%
Floating
Interest
$
Non-
Interest
bearing
$
Total
$
0.18%
0.03%
1.00%
2,000,000
1,871,745
167,937
- 2,000,000
9,381 1,881,126
173,829
5,892
-
-
-
-
4,039,682
1,670,234
80,251
1,765,758
1,670,234
80,251
5,805,440
- 627,267
627,267
Weighted
average
effective
interest
%
1.05%
0.01%
1.80%
-
-
Floating
Interest
$
Non-Interest
bearing
$
Total
$
4,001,756
60,076
167,937
- 4,001,756
60,076
-
167,937
962,717
138,253
5,330,739
-
- 962,717
- 138,253
1,100,970
4,229,769
-
389,339
389,339
Interest rate sensitivity analysis
The Group has no material exposure to any probable interest volatility.
Cryosite Limited Annual Report 30 June 2021
51
Notes to the Financial Statements
For the Year Ended 30 June 2021
32 FINANCIAL INSTRUMENTS (continued)
(b) Credit Risk
Credit risk arises from the financial assets of the Group, which comprise cash and cash equivalents, trade and
other receivables. The Group's exposure to credit risk arises from potential default of the counter party, with
a maximum exposure equal to the carrying amount of these instruments. Exposure at balance date is
addressed in each applicable note.
The Group trades with a number of types of customers, the main ones being:
Incorporated companies
·
· Research institutes; both private and academic
· Cord Blood customer
Incorporated Companies
The Group trades with recognised, publicly listed companies and large unlisted proprietary companies and as
such collateral is not requested nor is it the Group's policy to securitise its trade and other receivables.
Research institutes both private and academic
The Group also trades with research institutes that are either publicly, privately or government owned along
with recognised universities. Such customers are subject to credit search and collateral is not requested nor is
it the Group’s policy to securitise its trade and other receivables.
Cord Blood customers
All cord blood customer need sign a formal agreement and prepay for their storage charges.
We don’t offer individuals a trade on credit term. Credit risk limits are remote and regularly monitored. There
are no transactions that are not denominated in the functional currency of the Group.
(c) Capital management
When managing capital, the boards’ objective is to ensure the entity continues as a going concern as well as to
maintain returns to shareholders. The board also aims to maintain a capital structure that ensures the lowest
cost of capital available to the entity. As part of regular reviews, management considers the cost of capital and
the risks associated with each class of capital. Upon review, the Group will balance its overall capital structure
through the payment of dividends, new share issues as well as the issue of new debt or the redemption of
existing debt. The Group's overall strategy remains unchanged from 2020. The Board of Directors is responsible
for assessing financial risks, related controls and other financial risk management strategies. The Company
deploys its assets and liabilities so as to manage risk at commercially appropriate levels, bearing in mind the
constraints imposed by the consolidated entity’s size, results and other financial circumstances. The Company
aims to balance opportunities to improve profitability against related risks of losses of assets or the incurrence
of additional liabilities.
Cryosite Limited Annual Report 30 June 2021
52
Notes to the Financial Statements
For the Year Ended 30 June 2021
32 FINANCIAL INSTRUMENTS (continued)
(d) Fair value
All financial assets and liabilities have been disclosed in the financial statements and notes thereto at their
carrying value, which approximates their net fair values. The fair value of the assets and liabilities is included
at the amount at which the instrument could be exchanged in a current transaction between willing parties,
other than in a forced or liquidation sale. Fair values of balances related to long term revenue contracts are
determined using a discounted cash flow method using discount rates that reflect the appropriate level of risk
over the life of the long-term revenue stream.
(e) Liquidity Risk
The Group has assessed liquidity risk to be low at balance date. Total current assets, including cash and
equivalents, of $7,292,967 (2020: $6,926,612) at balance date less the total current liabilities of $3,477,866
(2020: $3,365,767) brings in an excess of amounting to $3,815,101(2020: $3,560,845). The Group generated a
positive operating cashflow of $438,801(excluding government incentive of 50k). 2020: $307,190 (excluding
the government incentive and the one-off legal settlement receipt) during the financial year. Liquidity risks are
managed by managing the payment & receipt cycle, capital expenditures and controllable expenses.
Maturity analysis of financial assets and liabilities based on management’s expectation.
Year ended
30 June 2021
Consolidated Financial Assets
Cash and cash equivalents
Trade and other receivables
Other assets
Consolidated Financial liabilities
Trade and other payables
Net maturity
Year ended
30 June 2020
Consolidated Financial Assets
Cash and cash equivalents
Trade and other receivables
Other Assets
Consolidated Financial liabilities
Trade and other payables
Net maturity
Less than 6
months
$
6-12
months
$
1-5 years
$
Greater
than 5
$
3,881,126
1,567,385
-
5,448,511
-
40,952
-
40,952
-
79,067
167,937
247,004
561,575
4,886,936
65,692
(24,740)
-
247,004
-
1,185
-
1,185
-
1,185
Less than 6
months
$
6-12
months
$
1-5 years
$
Greater
than 5
$
4,061,832
937,847
-
4,999,679
-
24,870
-
24,870
-
131,077
167,937
299,014
731,963
4,267,716
-
24,870
-
299,014
-
7,176
-
7,176
-
7,176
Total
$
3,881,126
1,688,589
167,937
5,737,652
627,267
5,110,385
Total
$
4,061,832
1,100,970
167,937
5,330,739
731,963
4,598,776
The risk implied from the values shown in the table above, reflects a balanced view of cash inflows and outflows.
Trade payables and other financial liabilities mainly originate from investment in working capital such as
inventories and trade receivables. These assets are considered in the Group’s overall liquidity risk. To monitor
existing financial assets and liabilities as well as enable an effective controlling of future risks the Directors monitor
the expected settlement of financial assets and liabilities
Cryosite Limited Annual Report 30 June 2021
53
Notes to the Financial Statements
For the Year Ended 30 June 2021
32 FINANCIAL INSTRUMENTS (continued)
The Group has assessed liquidity risk to be low at balance date and at the date of this report based on total
(f) 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. In order to protect against exchange
rate movements, the consolidated entity has established a foreign currency bank account.
33 PARENT ENTITY FINANCIAL INFORMATION
The individual financial statements for the parent entity show the following aggregate amounts:
ASSETS
Total Current Assets
Total Non-Current Assets
TOTAL ASSETS
LIABILITIES
Total Current Liabilities
Total Non-Current Liabilities
TOTAL LIABILITIES
EQUITY
Contributed equity
Share option reserves
Accumulated losses
TOTAL EQUITY
TOTAL COMPREHENSIVE INCOME
Net Profit of the parent entity for the year net of income tax
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
GUARANTEES ENTERED INTO BY THE PARENT ENTITY
2021
$
2020
$
7,292,967
14,699,908
6,926,612
16,575,314
21,992,875
23,501,926
3,477,866
18,137,446
3,365,767
20,422,946
21,615,312
23,788,713
5,861,808
30,392
(5,514,637)
5,861,808
18,616
(6,167,211)
377,563
(286,787)
652,574
652,574
1,536,027
1,536,027
No guarantees have been entered into by the parent entity in relation to the debts of its subsidiaries.
COMMITMENTS AND CONTINGENCIES OF THE PARENT ENTITY
Commitments and contingencies for the parent entity are the same as those disclosed in Note 27.
Cryosite Limited Annual Report 30 June 2021
54
Notes to the Financial Statements
For the Year Ended 30 June 2021
34
LEGAL CLAIM
Cryosite receive $1M in settlement of legal claim
Arising from the ACCC settlement as outlined in Note 35, Cryosite entered into a deed of settlement under
which the company was paid $1,000,000 on 30 September 2019, in settlement of the claim for loss and damage
relating to legal services received by Cryosite in connection with the proposed 2017 transaction.
The settlement sum is in full and final settlement of all claims by Cryosite relating to this matter.
Legal claim received
Legal fees incurred
Net legal settlement before tax
35
LEGAL SETTLEMENT
2021
$
2020
$
-
-
-
1,000,000
(41,017)
958,983
On the 13th February 2019, the Company settled with the Australian Competition and Consumer Commission
(ACCC) in relation to the proceeding against Cryosite in the Federal Court of Australia.
Under the terms of the settlement, the Company agreed to pay a pecuniary penalty of $1.1m (including costs)
to the ACCC, with Cryosite being allowed to pay the penalty in instalments with $250,000 (including $50,000
in legal costs) to be paid within 30 days of the Court's order and the balance to be paid in 10 equal annual
instalments from 2020 to 2029.
Other Liabilities – current
Other Liabilities – non-current
Total
2021
$
2020
$
53,330
474,502
50,311
527,833
527,832
578,144
36 RECLASSIFICATION AND COMPARATIVE FIGURES
Certain reclassification have been made to the prior year’s financial statements to enhance comparability with
the current year’s financial statements.
As a result, certain line items have been amended in the statement of Profit and Loss and other comprehensive
income and in the note 33 Parent Entity. Comparative figures have been adjusted to conform to the current
years’ presentation.
The items were reclassified as follows:
Cryosite Limited Annual Report 30 June 2021
55
Notes to the Financial Statements
For the Year Ended 30 June 2021
(a) Statement of Profit & Loss and Other Comprehensive Income
Costs of providing services
Depreciation and amortisation expense
Marketing expenses
Occupancy costs
Administration expenses
Legal claim
Total expenses
(b) Parent entity
ASSETS
Total Current Assets
Total Non-Current Assets
TOTAL ASSETS
LIABILITIES
Total Current Liabilities
Total Non-Current Liabilities
TOTAL LIABILITIES
EQUITY
Contributed equity
Share option reserves
Accumulated losses
TOTAL EQUITY
TOTAL COMPREHENSIVE INCOME
Net Profit of the parent entity for the year net of income tax
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
2020
$
2020
$
Reclassified
(3,333,500)
(437,554)
(57,604)
(329,831)
(4,049,171)
958,983
(7,248,677)
Reported in
Prior Year
(4,971,717)
(437,554)
(57,604)
(329,831)
(2,410,954)
958,983
(7,248,677)
2020
$
2020
$
Reclassified
Reported in
Prior Year
6,926,612
16,575,314
7,492,162
19,553,832
23,501,926
27,045,994
3,365,767
20,422,946
3,430,747
23,902,034
23,788,713
27,332,781
5,861,808
18,616
(6,167,211)
5,861,788
18,616
(6,167,191)
(286,787)
(286,787)
1,536,027
1,536,027
1,536,027
1,536,027
Cryosite Limited Annual Report 30 June 2021
56
Notes to the Financial Statements
For the Year Ended 30 June 2021
(c) Compensation for Key Management Personnel 2020
Reclassified
Year Ended 30
June 2020
Short term benefits
Salary &
Fees
$
Other
Cash
benefits
$
Post
employment
benefits
Share
based
payments
Total
Share
based
payments
Performance
based
Super
$
(4)
$
$
%
%
Directors
Andrew Kroger
Bryan Dulhunty*(1)
Nicola Swift (2)
Total directors
Executives
Mark Byrne (3)
Total Executive
Total
33,333
75,000
60,000
168,333
62,042
62,042
230,375
Reported in Prior Year
-
-
-
-
-
-
-
3,167
7,125
5,700
15,992
5,506
5,506
21,498
-
5,017
-
5,017
-
-
5,017
36,500
87,142
65,700
189,342
67,548
67,548
256,890
0.0%
5.8%
0.0%
2.6%
0.0%
0.0%
2.0%
0.0%
5.8%
0.0%
2.6%
0.0%
0.0%
2.0%
Year Ended 30
June 2020
Short term benefits
Post
employment
benefits
Share
based
payments
Total
Share
based
payments
Performance
based
Salary &
Fees
$
Other
Cash
benefits
$
33,333
-
75,000 150,012
40,000
60,000
168,333 190,012
62,042
62,042
-
-
230,375 190,012
Directors
Andrew Kroger
Bryan Dulhunty*(1)
Nicola Swift (2)
Total directors
Executives
Mark Byrne (3)
Total Executive
Total
Super
$
(4)
$
$
%
%
3,167
7,125
5,700
15,992
5,506
5,506
21,498
-
5,017
-
5,017
-
-
5,017
36,500
237,154
105,700
379,354
67,548
67,548
446,902
0.0%
2.1%
0.0%
1.3%
0.0%
0.0%
1.1%
0.0%
33.7%
0.0%
1.3%
0.0%
0.0%
1.1%
Other cash benefits amounts were reclassified in the related party disclosures.
Cryosite Limited Annual Report 30 June 2021
57
Level 12, 90 Arthur Street
North Sydney NSW 2060
PO Box 1994
North Sydney NSW 2059
Australia
Tel: +61 2 9922 1166
Fax: +61 2 9922 2044
www.mazars.com.au
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF CRYOSITE LIMITED AND ITS
CONTROLLED ENTITY
Report on the Financial Report
Opinion
We have audited the accompanying consolidated financial report of Cryosite Limited (the “Company”)
and the entity it controlled (the “Group”), which comprises the consolidated statement of financial
position as at 30 June 2021 and the consolidated statement of profit or loss and other comprehensive
income, the consolidated statement of changes in equity and the consolidated statement of cash flows
for the year ended on that date, other selected explanatory notes and the directors’ declaration.
In our opinion, the accompanying consolidated financial report of the Group is in accordance with the
Corporations Act 2001, including:
(i) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2021 and
of its financial performance for the year then ended; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Report section of our report. We are independent of the Group in accordance with the auditor
independence requirements of the Corporations Act 2001 and the ethical requirements of the
Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional
Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also
fulfilled our other ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance
in our audit of the financial report for the current year. We have determined that there are no key
audit matters to communicate in our report.
Mazars Risk & Assurance Pty Limited
ABN: 39 151 805 275
Liability limited by a scheme approved under Professional Standards Legislation
Other Information
The directors are responsible for the other information. The other information comprises the information
included in the annual report for the year ended 30 June 2021, 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 will 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
identified above when it becomes available 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 the 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 Group are responsible for the preparation of the financial report that gives a true
and fair view in accordance with the Australian Accounting Standards and the Corporations Act 2001.
The directors’ responsibility also includes such internal control as the directors determine is necessary
to enable the preparation of a 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 ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or 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 the 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_files/ar3.pdf. This
description forms part of our auditor’s report.
Opinion on the Remuneration Report
We have audited the Remuneration Report for the year ended 30 June 2021 as outlined on pages 10
to 14 of the financial report.
In our opinion, the Remuneration Report of Cryosite Limited for the year ended 30 June 2021, 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.
MAZARS RISK & ASSURANCE PTY LTD
Rose Megale
Director
Sydney, 24 August 2021
Additional information required by the Australian Stock Exchange Ltd and not shown elsewhere in this
report is as follows. The information is current as at 16th August 2021.
SUBSTANTIAL SHAREHOLDERS
The names of any substantial shareholders who have notified the Company in accordance with section
671B of the Corporations Act 2001 are:
Shareholder
ANDREW KROGER AND RELATED
ENTITIES
CELL CARE AUSTRALIA PTY LTD
MR GARY GRIFFITH ROBINS & MR
ALLAN JAMES ROBINS
DMX CAPITAL PARTNERS LIMITED
TWENTY LARGEST SHAREHOLDERS
2021
No of shares % of issued capital
2020
No of shares % of issued capital
20,266,964
-
2,800,000
2,370,973
43.25
-
5.98
5.06
18,889,612
9,129,995
40.31
19.48
-
-
-
-
The names of the twenty largest holders of quoted shares are:
SHAREHOLDERS
LISTED ORDINARY SHARES
No of shares
% of ordinary
shares
MR ANDREW KROGER and related entities
BNP PARIBAS NOMINEES PTY LTD
MR GARY GRIFFITH ROBINS & MR ALLAN JAMES ROBINS
DMX CAPITAL PARTNERS LIMITED
MR ALISTAIR DAVID STRONG
BELL POTTER NOMINEES LTD
MR CRAIG ANTHONY ROGERS
MR MARK GREGORY KERR & MRS LINDA MARIE KERR
SUNNYIT PTY LTD
H F A ADMINISTRATION PTY LIMITED
MR STEPHEN ROBERTS
MRS JANE SUSAN MILLIKEN
WIFAM INVESTMENTS PTY LTD
CASTLEREAGH EQUITY PTY LTD
INTEGUMENT PTY LTD
MS MARIE LUDIVINE SANDRINE LANGEVIN & MR GARY
GRIFFITH ROBINS
M N J HOLDINGS PTY LTD
NARON NOMINEES PTY LTD
MS ANGELINE LIM
MRS MICHELE EVE ROBINS
20,266,964
5,867,934
2,800,000
2,370,973
2,000,000
1,758,236
1,067,126
855,000
559,518
480,000
362,707
350,917
300,000
300,000
262,013
235,000
214,931
213,007
200,000
200,000
43.25
12.52
5.98
5.06
4.27
3.75
2.28
1.82
1.19
1.02
0.77
0.75
0.64
0.64
0.56
0.50
0.46
0.45
0.43
0.43
40,664,326
86.77
Cryosite Limited Annual Report 30 June 2021
61
DISTRIBUTION OF EQUITY SECURITIES
Number of Shareholders by Size of Holding
Range
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and Over
Total
Voting Rights
No of
Holders
No of ordinary
shares
42
241
64
105
37
489
14,212
870,032
518,516
3,195,060
42,261,743
46,859,563
All ordinary shares carry one vote per share without restriction.
Number of shareholders holding less than a marketable parcel
The number of shareholders holding less than a marketable parcel of shares is 45 and they hold
17,460 shares.
Cryosite Limited Annual Report 30 June 2021
62
Cryosite Limited Annual Report 30 June 2021
63