Appendix 4E
Preliminary final report
1. Details of reporting period
Name of entity
ABN
Reporting Period
Previous Corresponding Period
Presentation Currency
Cynata Therapeutics Limited (the Company)
98 104 037 372
Year ended 30 June 2023
Year ended 30 June 2022
Australian Dollars ($)
2. Results for announcement to the market
Key information
30 June 2023
$
30 June 2022
$
Increase/
(decrease)
%
2,007,179
7,835,174
(74.38%)
Amount
change
$
(5,827,996)
Revenues from ordinary activities (i)
Loss from ordinary activities after tax
attributable to members
Net loss for the period attributable
to members
14,277,495
5,445,172
162.20%
8,832,323
Net tangible asset per share
(i) The 30 June 2022 figure includes US$5M received from FUJIFILM Corporation under a Strategic Partnership
Agreement whereby Cynata regained rights to CYP-001 for graft-versus-host diseases (GvHD).
14,277,495
0.081
5,445,172
0.150
162.20%
-
8,832,323
-
3. Consolidated statement of profit or loss and other comprehensive income
Refer to attached consolidated financial statements.
4. Consolidated statement of financial position
Refer to attached consolidated financial statements.
5. Consolidated statement of cash flows
Refer to attached consolidated financial statements.
6. Consolidated statement of changes in equity
Refer to attached consolidated financial statements.
7. Dividends/Distributions
No dividends declared in current or prior year.
8. Details of dividend reinvestment plans
Not applicable.
Page | 1
9. Details of entities over which control has been gained or lost during the period
Not applicable.
10. Details of associate and joint venture entities
Not applicable.
11. Any other significant information needed by an investor to make an informed
assessment of the Company(cid:146)s financial performance and financial position
Refer to attached consolidated financial statements.
12. Foreign entities
Refer to attached consolidated financial statements.
13. Commentary on results for period and explanatory information
Cynata Therapeutics Limited ((cid:147)Cynata(cid:148) or the (cid:147)Company(cid:148)) and its controlled entities ((cid:147)the Group(cid:148))
incurred a net loss from operations for the financial year ended 30 June 2023 of $14,277,495 (2022:
$5,445,172). At 30 June 2023, the Group had a cash balance of $16,167,356 (2022: $23,798,046)
and net assets of $16,733,481 (2022: $23,960,085). The net cash outflow from operating activities
for the financial year was $14,282,729 (2022: $3,298,331). During the financial year, Cynata
progressed trial startup activities, including securing regulatory and ethics approvals, for the Phase 2
clinical trial of CYP-001, in patients with High-Risk aGvHD (HR-aGvHD). The trial aims to enrol
approximately 60 patients. Encouraging outcomes from Cynata(cid:146)s Phase 1 clinical trial of CYP-001 for
the treatment of steroid-resistant aGvHD (SR-aGvHD) were presented in June 2023 at the
International Society of Cell and Gene Therapy meeting. During the financial year, Cynata also
released encouraging initial data from the first six patients enrolled in the Phase 1 clinical trial of
CYP-006TK in patients with Diabetic Foot Ulcer demonstrating a clear difference in the reduction in
average ulcer size in patients treated with MSC product compared to those who received standard
of care treatment. The University of Sydney (USYD) continues to progress recruitment of patients in
the Phase 3 SCUlpTOR (structure-modifying treatment for medial tibiofemoral osteoarthritis) trial of
CYP-004, targeting patients suffering from Osteoarthritis of the knee. The trial aims to reduce pain
and disease progression in up to 440 patients. This trial is a collaboration between Cynata and
USYD. In partnership with Leiden University Medical Center, Cynata continues to progress start-up
activities for a Phase 1 clinical trial of CYP-001
in patients who have undergone renal
transplantation, with the aim of reducing or withdrawing immunosuppressant (i.e., anti-rejection)
drugs. Subsequent to the year, the trial received regulatory approval.
For more information, refer to the attached consolidated financial statements.
14. Audit
This report is based on accounts which have been audited and the audit report is included in the
attached consolidated financial statements.
Dr Kilian Kelly
Managing Director & Chief Executive Officer
28 August 2023
Page | 2
Annual Report
2022/2023
Corporate Directory
Cynata Therapeutics Limited
ACN 104 037 372
Board of Directors
Dr Geoff Brooke
Non-Executive Chair
Dr Kilian Kelly
Managing Director &
Chief Executive Officer
Dr Darryl Maher
Non-Executive Director
Dr Paul Wotton
Non-Executive Director
Ms Janine Rolfe
Non-Executive Director
Dr David Atkins
Non-Executive Director
Company Secretary
Mr Peter Webse
Registered Office and
Place of Business
Level 3, 100 Cubitt Street
Cremorne, Victoria 3121
Tel: +61 3 7067 6940
Email: info@cynata.com
Website
www.cynata.com
Auditors
Stantons
Level 2, 40 Kings Park Road
West Perth, Western Australia 6005
Share Registry
Automic Registry Services
Level 5, 191 St Georges Terrace
Perth, Western Australia 6000
Tel: 1300 288 664
(within Australia)
+61 2 9698 5414
(outside Australia)
Fax: +61 8 9321 2337
Email: hello@automic.com.au
Web: www.automic.com.au
Stock Exchange
Australian Securities Exchange
Level 4, North Tower, Rialto
525 Collins Street
Melbourne, Victoria 3000
ASX Code
CYP – fully paid ordinary shares
CYPOA – options
Annual report for the
financial year ended
30 June 2023
Contents
Key Highlights 2022-2023
Chair’s Letter
CEO’s Letter
Directors’ Report
Operating and Financial Review
Remuneration Report (audited)
Auditor’s Independence Declaration
Independent Auditor’s Report
Directors’ Declaration
Financial Statements
Notes
ASX Additional Information
3
4
6
8
18
24
39
40
44
46
52
80
1
1
2
Cynata Therapeutics Annual Report 2022/2023
Key Highlights 2022-2023
Patient recruitment
open for Phase
2 trial in acute
graft-versus-host
disease (aGvHD)
Phase 1 SR-aGvHD
trial data selected
for presentation
at the prestigious
International Society
for Cell & Gene
Therapy Annual
Meeting
Successful review
of initial data
and recruitment
ongoing in Phase 1
for the Diabetic
Foot Ulcers (DFU)
clinical trial
~300 patients
enrolled into the
Phase 3 SCUlpTOR
osteoarthritis
clinical trial
TM
CYP-001 clinical
trial for renal
transplantation
approved
Establishment
of Cymerus™
manufacturing
process at
FUJIFILM at an
advanced stage
~$1m Grant
awarded to
investigate
ischaemic heart
disease (IHD)
Intellectual
property portfolio
continues to
strengthen
A$7m in capital
raising including a
A$5m placement
and A$2m SPP
Cash balance of
A$16.2m as at
30 June 2023,
sufficient to
complete current
clinical trial
commitments
Dr Kilian Kelly
appointed to the
position of CEO
and Managing
Director
Key Highlights 2022-2023
3
Chair’s Letter
Dear Shareholders,
I am pleased to present to you the Annual Report of Cynata
Therapeutics Limited (“Cynata” or “the Company”) for the period
ended 30 June 2023.
Throughout the year, we made
important progress with our
ongoing and planned clinical trials,
strengthened the Company’s financial
position, and implemented board and
management changes to position
the Company for the next stage in its
growth as a leader in the stem cell and
regenerative medicine field.
Clinical Development Progress
We now have three active ongoing
clinical trials: acute graft versus host
disease; diabetic foot ulcer, and
osteoarthritis. Start-up activities for a
further proposed trial, in patients who
have received a kidney transplant,
are also underway. While these trials
relate to four distinct therapeutic
areas, they all focus on areas of huge
unmet medical need, with substantial
addressable markets. Trial progress
was slower than anticipated last year
for several reasons, but I believe we
are now well positioned to successfully
execute each of these programs and
achieve our targeted milestones in the
new financial year.
CEO Succession and Board Changes
At the end of the year, we were
delighted to announce the
appointment of Dr Kilian Kelly to the
position of Chief Executive Officer
and Managing Director, effective 1
July 2023, following the retirement
of the Company’s founding CEO, Dr
Ross Macdonald. Kilian joined the
Company in early 2014, and initially
held the role of Vice President, Product
Development, before his promotion to
Chief Operating Officer in 2019. He
oversaw the development of CYP-001,
Cynata’s lead Cymerus™ product for
I believe we are
now well positioned
to successfully
execute each of
these programs and
achieve our targeted
milestones in the new
financial year.
4
Cynata Therapeutics Annual Report 2022/2023 acute graft-versus-host disease (aGvHD), including
the highly successful world-first clinical trial. His deep
understanding of the business and the Cymerus™
platform provides an ideal basis for the advancement
of the Company’s pipeline and partner engagement.
At the same time, Dr Stewart Washer stepped down
from his position as a Non-Executive Director, and we
welcomed Dr David Atkins to the Board. Dr Atkins is
the Managing Partner of BioScience Managers, an
international healthcare investment firm and a major
Cynata shareholder.
Sound Financial Position
We enter the new financial year with over A$16m in
cash, which is sufficient to fund our ongoing clinical
trials.
I would like to express my gratitude to all our
shareholders for their unwavering support as we
make strides with our portfolio. I also extend my
appreciation to my colleagues on the Board, and the
rest of the Company’s team, for their dedication and
efforts throughout this year. We now set our sights on
success in the new fiscal year.
I wish to convey the heartfelt thanks of the Board to
Stewart and Ross. They held the roles of the inaugural
Chair and CEO, playing pivotal roles in leading Cynata
through its IPO in 2013, and subsequently steering
the growth of the Company over the past decade. We
extend our best wishes to both of them for their future
endeavours.
Yours sincerely,
Dr Geoff Brooke
Chair
Chair’s Letter
5
CEO’s Letter
Dear Shareholders,
Firstly, I am honoured to have been appointed as CEO and
Managing Director of Cynata, and I extend my thanks to our Chair,
Dr Geoff Brooke, and the rest of the Board for trusting me with this
opportunity.
After almost a decade with the
Company, during which I have
developed an extensive knowledge of
all aspects of the Company’s business,
I am excited to lead Cynata to success
in the years ahead.
Clinical Pipeline
A key focus this year was on
advancing our clinical development
programs. The Phase 1 trial in patients
with diabetic foot ulcer (DFU) and
the Phase 3 trial in patients with
osteoarthritis continued to enrol
patients throughout the year, while our
global Phase 2 clinical trial in patients
with high-risk acute graft versus
host disease (HR-aGvHD) opened for
recruitment subsequent to the year
end.
In addition to progressing the start-up
activities for the Phase 2 HR-aGvHD
trial, we also gained further recognition
for the highly encouraging Phase 1
aGvHD trial, when a summary of the
two-year follow-up data was selected
for presentation at the International
Society of Cell and Gene Therapy
(ISCT) annual meeting.
We also released positive initial
data from the first six patients
enrolled in the Phase 1 DFU trial, and
implemented measures to address the
unexpectedly high screening failure
rate in that trial.
The enrolment rate in the Phase
3 osteoarthritis trial improved
dramatically, with almost 300 patients
enrolled in the trial by year end –
making this one of the largest patient
Our number one
priority is the
successful execution
of our clinical trials,
and in particular,
meeting our
recruitment goals
in the new financial
year. We are in a very
strong position to do
this.
6
Cynata Therapeutics Annual Report 2022/2023 cohorts ever enrolled in a trial involving an MSC-based
therapy.
Furthermore, we have been working on a proposed
new trial in patients who have received a kidney
transplant, in partnership with Leiden University
Medical Center, which received regulatory approval
subsequent to the year end.
I would like to thank the whole Cynata team for their
commitment to advancing our Company and its
assets. I would also like to thank our shareholders for
their continued support. I am very optimistic about our
prospects for the new financial year, and indeed the
years beyond that.
Yours sincerely,
Dr Kilian Kelly
Chief Executive Officer & Managing Director
Robust Intellectual Property Estate
During the year, we continued to grow our robust
intellectual property portfolio, with further notices of
allowances or equivalent granted for three different
patents, in several jurisdictions.
FY24 outlook
Our number one priority is the successful execution
of our clinical trials, and in particular, meeting our
recruitment goals in the new financial year. We are
in a very strong position to do this. Our current cash
balance is sufficient to fund the HR-aGvHD and DFU
trials, while the osteoarthritis and renal transplant
trials are being funded by our external partners.
As announced following our strategic review
subsequent to the year end, we anticipate patient
recruitment in the DFU and osteoarthritis trials to
conclude in late 2023 or early 2024. Looking further
ahead, we anticipate results of the ongoing trials
being released in mid-2024 (DFU), in the second half
of 2025 (HR-aGvHD) and in the first half of-2026
(osteoarthritis), respectively. We also anticipate the
commencement of the proposed kidney transplant trial
within the coming months.
CEO’s Letter
7
Directors’ Report
The directors of Cynata Therapeutics Limited (“Cynata”
or “the Company”) and its controlled entities (“the Group”)
submit herewith the annual report of the Group for the
financial year ended 30 June 2023.
In order to comply with the provisions of the
Corporations Act 2001, the directors report as follows:
8
Cynata Therapeutics Annual Report 2022/2023 Board of Directors
The names and particulars of the directors of the Group during or since the end of
the financial year are:
Dr Geoff Brooke
MBBS, MBA
Independent Chair, joined the Board
in May 2019 as Non-Executive
Director and appointed Chair on 18
August 2020. Dr Brooke co-founded
GBS Venture Partners in 1996 and
has more than 30 years’ venture
capital experience. He was formerly
President of Medvest Inc., a US-based
early-stage venture capital group he
founded with Johnson & Johnson. Dr
Brooke’s experience includes company
formation and acquisitions as well as
public listings on NYSE, NASDAQ and
ASX exchanges. He is a non-executive
director of Acrux Limited (ASX: ACR)
and Chairman of Actinogen Medical
Limited (ASX: ACW) and has been
a founder, executive and director of
private and public companies. From
2009 until 2015, Dr Brooke was an
independent director of the Victoria
Workcover Authority. Dr Brooke holds
a Bachelor of Medicine/Surgery from
Melbourne University and a Masters of
Business Administration from IMEDE
(now IMD) in Switzerland.
Dr Kilian Kelly
MPharm, PhD, MAICD
Appointed Managing Director &
Chief Executive Officer on 1 July
2023 following the retirement
of Dr Macdonald. Dr Kelly was
appointed as Vice President, Product
Development in January 2014 and has
since then been a member of Cynata’s
executive management team. Dr Kelly
has served as Senior Director, Drug
Development at Biota Pharmaceuticals
Inc. Prior to joining Biota, he was Vice
President, Regulatory and Clinical at
Mesoblast Ltd. Dr Kelly has also held
a variety of regulatory and project
management positions with Kendle
International, Amgen and AstraZeneca.
He holds a Masters in Pharmacy from
Robert Gordon University, Aberdeen
and a PhD in Pharmaceutical Sciences
from Strathclyde University, Glasgow.
He is a registered pharmacist and a
member of the Royal Pharmaceutical
Society, the Australian Institute
of Company Directors and the
International Society for Cell and
Gene Therapy. Dr Kelly also serves
on the Industry Interface Committee
of the Centre for Commercialisation
of Regenerative Medicine (CCRM)
Australia.
Directors’ Report
9
Directors’ Report (cont’d)
Dr Darryl Maher
MBBS, PhD
Independent Non-Executive Director,
joined the Board in June 2020.
Dr Maher adds global
biopharmaceutical and
commercialisation capability to the
Cynata board, with over 23 years’
experience with CSL Limited. CSL is
one of the world’s most successful
developers of biologic pharmaceutical
products and has a market
capitalisation of ~A$130 billion. Dr
Maher has had a long successful
career in pharmaceutical product
development, most recently as the
former Vice President of R&D and
Medical Affairs at CSL Behring
Australia where he was responsible for
the development of multiple successful
drug products from initiation through
to clinical development and ultimately
to commercialisation. Dr Maher
undertook medical training, qualified
as a specialist haematologist and
completed a PhD before commencing
his career in the pharmaceutical
industry.
Dr Paul Wotton
MBA, PhD
Independent Non-Executive Director,
joined the Board in June 2016 and
was Non-Executive Chair from 28
February 2017 until 18 August 2020.
Dr Wotton was the Chief Executive
Officer of Obsidian Therapeutics, a
clinical stage TIL therapy company
based in Cambridge, Massachusetts.
Prior to this, he was the Founding
President and CEO of Sigilon Inc. He
was previously President and CEO of
Ocata Therapeutics Inc. (NASDAQ:
OCAT) guiding the company through
a take-over by Astellas Pharma Inc., in
a US$379 million all cash transaction.
Prior to Ocata, Dr Wotton had served
as President and CEO of Antares
Pharma Inc. (NASDAQ: ATRS) since
October 2008. Prior to joining Antares,
Dr Wotton was the CEO of Topigen
Pharmaceuticals and prior to Topigen,
he was the Global Head of Business
Development of SkyePharma PLC.
Dr Wotton held senior level positions
at Eurand International BV, Penwest
Pharmaceuticals, Abbott Laboratories
and Merck, Sharp and Dohme. Dr
Wotton is a member of the Board
and Governance Committee of Vericel
Corporation (NASDQA: VCEL), a US
company developing autologous
cellular therapies, Chairman of Kytopen
Corp., an MIT startup focused on
non-viral transduction technology,
independent director at Dimension Inx,
a biomaterials platform company and
Founder of AvengeBio, a clinical stage
immune-oncology company focused
on ovarian and peritoneal cancers. He
was a member of the board of Veloxis
Pharmaceuticals A/S and Chairman
of the Compensation Committee,
until its acquisition by Asahi Kasai in
February 2020 in a $1.3 billion all cash
transaction. He is also past Chairman
of the Emerging Companies Advisory
Board of BIOTEC Canada. Dr Wotton
received his PhD in pharmaceutical
sciences from the University of
Nottingham. In 2014, he was named
New Jersey EY Entrepreneur of the Year
in Life Sciences.
10
Cynata Therapeutics Annual Report 2022/2023 Ms Janine Rolfe
BEc, LLB (Hons), GAICD
Independent Non-Executive Director,
joined the Board in September
2022. Ms Rolfe brings more than
two decades of legal, governance
and management experience across
various sectors to the Board. In recent
years, Ms Rolfe has transitioned to
professional non-executive director
roles. Ms Rolfe’s last executive role
was as General Counsel & Company
Secretary for S&P/ASX100 Link Group.
Prior to that, Ms Rolfe established
Dr David Atkins
BSc, MBA, PhD
Non-Independent Non-Executive
Director, joined the Board in July 2023.
Dr Atkins has over 25 years’ experience
as a global leader in a broad range
of life science and healthcare
businesses including Johnson &
Johnson and Danaher. He has held
senior leadership positions in R&D,
business development, operations and
sales and marketing. Dr Atkins has
Dr Ross Macdonald
PhD (Biochemistry), Grad Dip in Bus Admin
Dr Macdonald joined the Board
in August 2013 and served as
Managing Director & Chief Executive
Officer. Dr Macdonald has over
34 years’ experience and a track
Dr Stewart Washer
BSc (Hons), PhD
Dr Washer joined the Board in August
2013 and was Executive Chair until 28
February 2017. Dr Washer has over
31 years of CEO and board experience
in medical technology and biotech
governance consultancy, Company
Matters, where she served at the helm
for over a decade and during a period
where stakeholders greatly intensified
their expectations of Australian
companies’ governance practices.
Previously, she was a legal counsel
and company secretary at Qantas
Airways and a solicitor at Mallesons
Stephen Jaques (now King & Wood
Mallesons).
extensive commercial experience in
markets in North America, EMEA, Asia
and Latin America. He has founded or
assumed leadership roles in 3 start-up
businesses in gene therapy, molecular
and cellular cancer diagnostics and
clinical genomics. Dr Atkins is the
Managing Partner at BioScience
Managers.
record of success in pharmaceutical
and biotechnology businesses.
Dr Macdonald retired from his position
on 30 June 2023.
companies. Dr Washer resigned on
1 July 2023.
Directors’ Report
11
Directors’ Report (cont’d)
Directorships of other listed companies
Directorships of other listed companies held by directors in the 3 years immediately before the end of the financial
year are as follows:
Name
Geoff Brooke
Company
Acrux Limited
Stewart Washer
Orthocell Limited
Actinogen Medical Limited
Botanix Pharmaceuticals Limited
Emyria Limited
Paul Wotton
Vericel Corporation
Veloxis Pharmaceuticals A/S
Directors’ shareholdings
Period of directorship
Since Jun 2016
Since Mar 2017
Since 2014
Since Feb 2019
Since Mar 2018
Since 2015
2016-2020
The following table sets out each director’s relevant interest in shares, rights or options in shares or debentures of
the Company or a related body corporate as at the date of this report:
Directors
Fully paid ordinary shares
Share options
Geoff Brooke
Kilian Kelly (i)
Darryl Maher
Paul Wotton
Janine Rolfe (ii)
No.
257,343
525,508
50,000
315,309
116,279
David Atkins (iii)
-
No.
2,369,767
3,015,748
325,000
369,767
358,140
-
(i) Appointed Managing Director & CEO on 1 July 2023
(ii) Appointed 1 September 2022.
following the retirement of Dr Macdonald. Dr Kelly was
previously the Chief Operating Officer.
(iii) Appointed 1 July 2022.
Remuneration of key management personnel
Information about the remuneration of key
management personnel is set out in the remuneration
report section of this directors’ report. The term ‘key
management personnel’ refers to those persons
having authority and responsibility for planning,
directing and controlling the activities of the Group,
directly or indirectly, including any director (whether
executive or otherwise) of the Group.
1212
Cynata Therapeutics Annual Report 2022/2023 Options granted to directors and senior management
During and since the end of the financial year, an aggregate of 2,636,096 options were granted to the following
key management personnel (2022: 1,000,000):
Key management
personnel
Number of options
granted
Geoff Brooke1
Kilian Kelly2
Ross Macdonald3
Stewart Washer4
Paul Wotton1
Darryl Maher1
Janine Rolfe5
Janine Rolfe1
69,767
2,015,748
27,907
69,767
69,767
25,000
300,000
58,140
Issuing entity
Cynata Therapeutics Ltd
Cynata Therapeutics Ltd
Cynata Therapeutics Ltd
Cynata Therapeutics Ltd
Cynata Therapeutics Ltd
Cynata Therapeutics Ltd
Cynata Therapeutics Ltd
Cynata Therapeutics Ltd
Number of
ordinary shares
under option
69,767
2,015,748
27,907
69,767
69,767
25,000
300,000
58,140
1 Free attaching listed options issued on 1 June 2023
3 Free attaching listed options issued on 1 June 2023
pursuant to participation in a Placement.
pursuant to participation in a Placement. Dr Macdonald
2 Appointed Managing Director & Chief Executive Officer
retired from the Board on 30 June 2023.
on 1 July 2023 following the retirement of Dr Macdonald.
4 Free attaching listed options issued on 1 June 2023
Dr Kelly was previously the Chief Operating Officer.
pursuant to participation in a Placement. Dr Washer
2,000,000 unlisted options were granted pursuant to his
resigned on 1 July 2023.
appointment as MD & CEO and 15,748 listed options were
issued as attaching options with shares acquired pursuant
to participation in a Share Purchase Plan.
5 Unlisted options issued to Ms Rolfe in consideration
for joining the Board. Ms Rolfe was appointed as an
Independent Non-Executive Director on 1 September
2022.
Company Secretary
Dividends
Mr Peter Webse held the position of company
secretary of Cynata Therapeutics Limited at the end
of the financial year. He joined Cynata in April 2012.
Mr Webse is a director of Governance Corporate Pty
Ltd, a company specialising in providing company
secretarial, corporate governance and corporate
advisory services. Mr Webse acts as Company
Secretary for a number of ASX listed biotech and
technology companies.
No dividends have been paid or declared since the
start of the financial year and the directors have not
recommended the payment of a dividend in respect of
the financial year.
Directors’ Report
13
13
Directors’ Report (cont’d)
Shares under option or issued on exercise of options
Details of unissued shares or interests under option as at the date of this report are:
Issuing entity
Grant date
Number of
shares under
option
Cynata Therapeutics Limited1
17 May 2019
300,000
Cynata Therapeutics Limited2
19 Aug 2020
1,100,000
Cynata Therapeutics Limited3
14 Sept 2020
100,000
Cynata Therapeutics Limited4
24 Nov 2020
4,500,000
Cynata Therapeutics Limited5
11 Oct 2021
1,000,000
Cynata Therapeutics Limited6
22 Nov 2022
300,000
Class of
shares
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Cynata Therapeutics Limited7
1 June 2023
18,177,637
Ordinary
Exercise
price of
option
$2.11
$0.97
$1.28
$0.97
$0.89
$0.51
$0.30
Expiry date
of options
16 May 2024
18 Aug 2024
13 Sept 2024
29 Nov 2025
11 Oct 2025
23 Nov 2027
1 Apr 2025
Cynata Therapeutics Limited8
30 Jun 2023
2,300,000
Ordinary
$0.176
30 Jun 2028
1 Unlisted options issued to Dr Brooke on 17 May 2019
5 Unlisted options issued to Dr Airey on 11 October 2021
pursuant to the terms of his appointment as non-
pursuant to an Employee Option Acquisition Plan. Dr
executive director.
Airey is an employee of Cynata and was appointed on 11
2 Unlisted options issued to Dr Kelly (1,000,000), Dr Lipe
October 2021 as Chief Medical Officer.
(100,000), Dr Atley (50,000) and Mr Thraves (100,000)
6 Unlisted options issued to Ms Rolfe on 23 November 2022
on 19 August 2020 pursuant to an Employee Option
in consideration of her agreeing to join the Board and to
Acquisition Plan. Dr Atley and Dr Lipe ceased to be an
reward her expected future commitment and contribution
employee on 4 Nov 2022 and 3 Jan 2023 respectively.
as a director. Ms Rolfe was appointed as a non-executive
3 Unlisted options issued to Mrs Gupta on 14 September
director on 1 September 2022.
2020 pursuant to an Employee Option Acquisition Plan.
7 Listed options issued to Directors and investors on 1 June
4 Unlisted options issued to Dr Brooke (2,000,000), Dr
2023 pursuant to a Placement.
Macdonald (1,500,000), Dr Washer (300,000), Dr Wotton
8 Unlisted options issued to Dr Kelly (2,000,000) and
(300,000), Dr Maher (300,000) and Mr Webse (100,000)
a nominee of Dr Atkins (300,000) pursuant to their
on 30 November 2020 pursuant to an Employee Option
appointments.
Acquisition Plan.
There were no shares or interests issued during
or since the end of the financial year as a result of
exercise of an option (2022: nil).
The holders of these options do not have the right, by
virtue of the option, to participate in any share issue
or interest issue of the Company or of any other body
corporate or registered scheme.
There have been no options granted over unissued
shares or interests of any controlled entity within the
Group during or since the end of the reporting period.
1414
Cynata Therapeutics Annual Report 2022/2023 Directors’ meetings
The following table sets out the number of directors’
meetings held during the financial year and the
number of meetings attended by each director. During
the financial year, 10 board meetings were held.
Directors
Geoff Brooke
Ross Macdonald (retired 30 June 2023)
Stewart Washer (resigned 1 July 2023)
Paul Wotton
Darryl Maher
Janine Rolfe (appointed 1 Sept 2022)
Held
10
10
10
10
10
8
Board of Directors
Attended
10
10
10
8
10
8
Indemnification of officers and
auditors
Insurance premiums
The Company indemnifies each of its Directors,
Officers and Company Secretary. The Company
indemnifies each Director or officer to the maximum
extent permitted by the Corporations Act 2001 from
liability to third parties, except where the liability
arises out of conduct involving lack of good faith, and
in defending legal and administrative proceedings and
applications for such proceedings.
The Company must use its best endeavours to insure
a Director or Officer against any liability, which does
not arise out of conduct constituting a willful breach of
duty or a contravention of the Corporations Act 2001.
The Company must also use its best endeavours to
insure a Director or Officer against liability for costs
and expenses incurred in defending proceedings
whether civil or criminal.
The Company has not entered into any agreement
with its current auditors indemnifying them against
any claims by third parties arising from their provision
of audit services.
During the year the Company paid insurance
premiums to insure directors and officers against
certain liabilities arising out of their conduct while
acting as an officer of the Group. Under the terms and
conditions of the insurance contract, the nature of
the liabilities insured against and the premium paid
cannot be disclosed.
Proceedings on behalf of the
Company
No person has applied for leave of Court to bring
proceedings on behalf of the Company or 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 any part of those proceedings.
Changes in state of affairs
There was no significant change in the state of affairs
of the Group during the financial year.
Directors’ Report
15
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Directors’ Report (cont’d)
Subsequent events
Corporate governance
Cynata Therapeutics Limited and the board support
and adhere to the principles of corporate governance
and are committed to achieving and demonstrating
the highest standards of corporate governance.
Cynata has reviewed its corporate governance
practices against the Corporate Governance Principles
and Recommendations (4th edition) published by
the ASX Corporate Governance Council. The 2023
Corporate Governance Statement is dated 28 August
2023 and reflects the corporate governance practices
in place throughout the 2023 financial year. The 2023
Corporate Governance Statement was approved by
the board on 28 August 2023. A description of the
Group’s current corporate governance practices is set
out in the Group’s Corporate Governance Statement
which can be viewed at www.cynata.com/corporate-
governance.
Environmental regulations
The Group’s operations are not subject to significant
environmental regulation under the Australian
Commonwealth or State law.
Non-audit services
The auditor did not perform any non-audit services
during the financial year.
Auditor’s independence declaration
The auditor’s independence declaration for the
financial year ended 30 June 2023 has been received
and is included on page 39 of this annual report.
As announced on 30 June 2023, Dr Kilian Kelly was
appointed to the position of Chief Executive Officer
and Managing Director, effective 1 July 2023, following
the retirement of Dr Ross Macdonald. Dr Kelly had
been Cynata’s Chief Operating Officer since May
2019 and has been instrumental in advancing the
Company’s clinical pipeline since joining Cynata as
Vice President, Product Development in 2014.
Also on 30 June 2023, the Company announced
the appointment of Dr David Atkins to the Board
of Directors, effective 1 July 2023. Dr Atkins is the
Managing Partner of BioScience Managers, an
international healthcare investment firm and a major
Cynata shareholder. Dr Stewart Washer stepped
down from his position as a non-executive director on
the same date.
On 24 July 2023, the Company announced the
outcome of a strategic review of its clinical
development portfolio, which was led by Dr Kelly.
The updates on the Company’s four active clinical
development programs are reflected in the summaries
of each program above.
On 10 August 2023, the Company announced it has
opened recruitment in its Phase 2 clinical trial of CYP-
001, in patients with High-Risk acute Graft versus
Host Disease (HR-aGvHD). This global trial aims to
enrol approximately 60 patients with HR-aGvHD who
will be randomised to receive either steroids plus CYP-
001 or steroids plus placebo.
On 21 August 2023, the Company advised that the
Competent (regulatory) Authority in the Netherlands
has approved the Phase 1 clinical trial of CYP-001 in
patients who have received a kidney transplant.
Other than the above, there has not been any matter
or circumstance occurring subsequent to the end of
the financial year that has significantly affected, or
may significantly affect, the operations of the Group,
the results of those operations, or state of affairs of
the Group in future financial years.
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Cynata Therapeutics Annual Report 2022/2023 CEO’s Letter
17
17
Operating and Financial Review
Principal activities
Operating results
The Group’s principal activities throughout the
financial year continued to be the development and
commercialisation of a proprietary induced pluripotent
stem cell (iPSC)-based platform technology,
Cymerus™.
The Cymerus platform utilises leading edge iPSC
technology to enable scalable manufacture of
mesenchymal stem cell (MSC)-based products
for potential human therapeutic use. The primary
advantage of the Cymerus platform is its ability to
produce an effectively limitless number of consistent,
high quality MSCs from a single cell bank, which
in turn was derived from a single donation from
one donor. This avoids challenges associated with
conventional MSC manufacturing methods, including
the need for new tissue donations from different
donors on an ongoing basis, which can lead to
substantial variability and potential impacts on MSC
functionality.
There are currently four active clinical development
programs using the Cymerus technology. Two of
those programs are being managed and funded
directly by the Company (acute graft versus host
disease [aGvHD] and diabetic foot ulcer [DFU]), while
two are being funded and managed via partners
(osteoarthritis [OA; partnered with the University of
Sydney] and renal transplant [partnered with Leiden
University Medical Center]).
The consolidated loss of the Group for the financial
year, after accounting for an R&D refund of
$1,654,310 (2022: $832,677) and providing for income
tax, amounted to $14,277,495 (2022: $5,445,172).
During the year ended 30 June 2023, Cynata
successfully raised ~$7.04m (before transaction
costs) via a Share Placement and Share Purchase
Plan. Further discussion on the Group’s operations is
provided below:
Operational update
Acute Graft Versus Host Disease
During the year, Cynata progressed trial startup
activities, including securing regulatory and ethics
approvals, for the Phase 2 clinical trial of CYP-001,
in patients with High-Risk aGvHD (HR-aGvHD). The
trial aims to enrol approximately 60 patients with
HR-aGvHD, who will be randomised to receive either
steroids plus CYP-001, or steroids plus placebo. This
trial is being managed and funded by Cynata.
Subsequent to the year end, on 10 August 2023,
recruitment in this trial opened at the first participating
centre (Westmead Hospital, Sydney, Australia). It is
anticipated that additional centres in the US and
Australia will be initiated and opened for recruitment
in the first quarter of the new financial year, with
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Cynata Therapeutics Annual Report 2022/2023 further centres in a number of European countries
opening later, subject to necessary approvals,
including regulatory and ethics.
The Company anticipates completion of enrolment
in this trial by the end of 2024. Following patient
treatment, follow-up and data analysis, the release of
primary evaluation results is expected in the second
half of 2025.
Encouraging outcomes from Cynata’s Phase 1 clinical
trial of CYP-001 for the treatment of steroid-resistant
aGvHD (SR-aGvHD) were presented in June 2023, at
the International Society of Cell and Gene Therapy
(ISCT) annual meeting. Distinguished gene and stem
cell therapy scientist, Professor John Rasko, AO
(Head of Department, Cell & Molecular Therapies,
Royal Prince Alfred Hospital, Sydney), presented the
findings, including a two-year survival rate of 60%
(9/15 patients), with no treatment-related serious
adverse events or safety concerns identified. This
survival rate compares very favourably to previously
reported outcomes in SR-aGvHD. For example, in the
Phase 3 study that supported approval of the drug
ruxolitinib, the 18-month overall survival rates were
only 38% in the ruxolitinib group and 36% in the “best
available treatment” control group (survival at two
years was not evaluable).1
CYP-001 has been granted Orphan Drug Designation
by the FDA for the treatment of GvHD, potentially
providing several commercially significant incentives
and decreased time to commercialisation.
Diabetic Foot Ulcer
Encouraging initial data from the first six patients
enrolled in the Phase 1 clinical trial of CYP-006TK in
patients with DFU were released in April 2023. This
demonstrated a clear difference in the reduction in
average ulcer size in patients treated with the MSC
product compared to those who received standard of
care treatment. The DFU trial aims to enrol 30 patients
who are randomised to receive either (i) CYP 006TK
1 Zeiser R, et al. Ruxolitinib for Glucocorticoid-Refractory
Acute Graft-versus-Host Disease. N Engl J Med.
2020;382(19):1800-1810.
Review of operations
Key Highlights
Clinical development programs:
• Patient recruitment in Phase 2 trial of
CYP-001 in aGvHD open (subsequent to
year-end)
•
Two-year follow-up data from Phase 1
SR-aGvHD trial selected to be presented
at the prestigious International Society
for Cell & Gene Therapy (ISCT) Annual
Meeting
• Patient recruitment ongoing in Phase
1 trial of CYP-006TK in DFU, with a
successful review by an independent
Data Safety Monitoring Board (DSMB)
and positive initial data, and key
initiatives implemented to increase
enrolment rates
•
~300 patients enrolled into the Phase 3
trial of CYP-004 in osteoarthritis
• CYP-001 clinical trial for renal
transplantation approved
Strategic manufacturing partnership with
Fujifilm progressing well, with establishment
of Cymerus process at FUJIFILM Cellular
Dynamics Inc (FCDI) at an advanced stage
Grant awarded by Medical Research
Future Fund (MRFF) for ~$1m to investigate
Cynata’s MSCs in ischaemic heart disease
(IHD) in major preclinical project
Intellectual property portfolio continues to
strengthen
Successfully completed a A$7.0m capital
raising consisting of a A$5.0m placement and
A$2.0m SPP which closed oversubscribed
Appointment of Dr Kilian Kelly as CEO &
Managing Director from 1 July 2023
Cash balance of A$16.2m as at 30 June 2023
Operating and Financial Review
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Operating and Financial Review (cont’d)
treatment for four weeks, followed by standard of
care treatment; or (ii) standard of care treatment
throughout the study. This trial is being managed and
funded by Cynata.
Recruitment in this trial is estimated to conclude by the
end of 2023, with results available mid-2024. Cynata
has actively taken steps to improve the enrolment rate
including optimising the trial protocol and adding three
new clinical sites during the year.
Osteoarthritis
The University of Sydney (USYD) continues to progress
recruitment of patients in the Phase 3 SCUlpTOR
(structure-modifying treatment for medial tibiofemoral
osteoarthritis) trial of CYP-004, targeting patients
suffering from OA of the knee. The trial aims to reduce
pain and disease progression in up to 440 patients.
This trial is a collaboration between Cynata and USYD.
USYD is managing the trial, which is funded by an
Australian Government National Health and Medical
Research Committee (NHMRC) project grant. Cynata
is providing Cymerus MSCs for use in the study, and
retains full commercial rights over the data.
The recruitment rate accelerated dramatically during
the year, with close to 300 patients enrolled in the
trial by year end. Recruitment is currently estimated
to conclude in late 2023 to early 2024, with primary
evaluation results available in the first half of 2026
following final patient follow-ups and trial data
analysis.
Renal Transplantation
In partnership with Leiden University Medical
Center (LUMC), Cynata continues to progress
start-up activities for a Phase 1 clinical trial of
CYP-001 in patients who have undergone renal
transplantation, with the aim of reducing or
withdrawing immunosuppressant (i.e., anti-rejection)
drugs. Subsequent to the year end, the trial received
regulatory approval.
LUMC will manage the trial and provide funding, while
Cynata will provide Cymerus MSCs. As with the OA
trial, Cynata will retain full commercial rights over the
data.
FUJIFILM Strategic Manufacturing Partnership
During FY22, Cynata and FUJIFILM entered into a
new strategic partnership for FUJIFILM to provide
clinical and commercial manufacturing services for,
and supply of, Cynata’s Cymerus MSC products. This
partnership is progressing well, with the project to
establish the Cymerus manufacturing process at
FUJIFILM Cellular Dynamics Inc (FCDI) at an advanced
stage.
Pre-clinical Development
In September 2022, the NHMRC awarded a grant
of approximately $1 million under the NHMRC 2021
MRFF Cardiovascular Health Mission to St Vincent’s
Institute of Medical Research (SVIMR), to fund a major
preclinical research project investigating Cynata’s
Cymerus™ MSCs as treatment for ischaemic heart
disease (IHD). Together with SVIMR, Cynata will
partner with multiple leading research institutions to
undertake this important project.
The project involves encapsulating Cymerus MSCs
in a clinical grade device implanted below the skin
to deliver a minimally invasive method of harnessing
MSCs and providing long-term cardiac reparative
effects. If successful, it is anticipated that these
studies would support progression to human trials and
address a significant unmet need as IHD is the leading
cause of heart failure worldwide.
Strengthened intellectual property portfolio
Cynata continued to advance its robust intellectual
property portfolio during the year. Notable progress
on patents owned directly by Cynata include the
following:
z Notices of Acceptance/Allowance from IP
Australia and the Canadian Intellectual Property
Office (CIPO) regarding a patent application
entitled “Colony Forming Medium and Use
Thereof”, which relates to the optimisation of the
Cymerus process by Cynata.
2020
Cynata Therapeutics Annual Report 2022/2023 z Notices of Allowance from the US Patent Office
and the CIPO for a patent application entitled
“Pluripotent Stem Cell Assay”, which relates to a
novel method for ensuring the quality and purity of
Cynata’s therapeutic MSC products
proportion of patients in the Phase 2 aGvHD trial.
Key milestones are also anticipated in the partnered
programs, including completion of recruitment in
the Phase OA trial and commencement of the renal
transplantation trial.
z A Notice of Acceptance from IP Australia for a
patent application titled “Method for Treating
Allergic Airways Disease (AAD/Asthma)”,
describes a method of use of Cymerus MSC
products in treating diseases of the lungs and
airways
The Company also continues to pursue its business
development outreach activities, with a view to more
fully exploiting the value of the Cymerus platform, as
well as securing optimal partners for the late-stage
clinical development and commercialisation of its
existing clinical candidates.
Successfully completed capital raising & receipt of
tax incentive rebate
Financial position
In April/May 2023, Cynata raised A$7.0m via a
A$5.0m Placement and A$2.0m Share Purchase Plan
(SPP) which closed oversubscribed. The Placement
was conducted at an offer price of $0.215 and the
SPP was conducted at an offer price of $0.155.
Both included free attaching listed options on a 1:2
basis, exercisable at $0.30 and expiring on 1 April
2025. The Placement was supported by existing
healthcare investor Bioscience Managers, new and
existing institutional shareholders, and Cynata’s senior
management and board members. Proceeds raised
will be used to fund Cynata’s Phase 2 aGvHD clinical
trial and for general working capital.
Also, during the year, Cynata received an ~A$1.6m
Research and Development Tax Incentive rebate.
The Research and Development Tax Incentive is
an Australian Government initiative intend to help
companies innovate and grow by offsetting some
of the costs of eligible research and development
to support companies engaging in research and
development in Australia.
Outlook
The primary focus of the Company’s activities in the
current financial year is on successful execution of its
ongoing clinical development programs, in particular
the programs managed and funded directly by the
Company (aGvHD and DFU). In the coming year,
the Company anticipates concluding enrolment of
the Phase 1 DFU trial, and recruiting a substantial
The net assets of the Group have decreased
by $7,226,604 to $16,733,481 in 2023 (2022:
$23,960,085).
Material risks
There is a small number of material risks that, either
individually or in combination, may materially and
adversely affect the future operating and financial
performance and prospects of Cynata and the value
of its shares. Some of these risks may be mitigated
by Cynata’s internal controls and processes but
some are outside the control of Cynata, its directors
and management. The material risks identified by
management are described below:
(a) Clinical development risk
The nature of clinical drug development is inherently
risky, with many drug candidates failing to be
successfully developed into marketable products.
The Company is currently undertaking clinical trials
with certain of its products and plans to undertake
trials with additional products in its pipeline. Clinical
trials have many associated risks which may impact
the Company’s commercial potential and therefore
its future prospects and profitability. Clinical trials
may fail to recruit patients, be terminated for safety
reasons, or fail to be completed within acceptable
timeframes as a result of delay. Clinical trials may
reveal drug candidates to be unsafe, poorly tolerated
or non-effective. Any of these outcomes will likely
Operating and Financial Review
21
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Operating and Financial Review (cont’d)
have a significant adverse effect on the Company,
the value of its securities and the future commercial
development of its drug candidates. Clinical trials
might also potentially expose the Company to product
liability claims in the event its products in development
have unexpected effects on clinical subjects.
Mitigation measures employed by the Company
include: ensuring that clinical trials are strongly
supported by preclinical safety and efficacy data;
careful clinical trial design to minimise the changes
of potentially spurious outcomes; use of independent
data and safety monitoring boards; engagement of
leading contract research organisations to manage
the trials and drive recruitment; engagement of
well-qualified clinical sites experienced in clinical trial
execution and in the relevant therapeutic areas.
(b) Regulatory risk
The research, development, manufacture, marketing
and sale of products developed by the Company are
subject to extensive regulation by multiple government
authorities and institutional bodies in Australia and
overseas. Pharmaceutical products must undergo a
comprehensive and highly regulated development,
trial and review process before receiving approval for
marketing. The process includes a requirement for
approval to conduct clinical trials, and the provision of
data relating to the quality, safety and efficacy of the
products for their proposed use. There is no guarantee
that regulatory approvals to conduct clinical trials
and/or to manufacture and market the Company’s
products will be granted.
If a product is approved, it may also be submitted for
cost reimbursement approval to relevant agencies. The
availability and timing of that reimbursement approval
may have an impact upon the uptake and profitability
of products in some jurisdictions. If the Company is
unable to secure necessary approvals from regulatory
agencies and institutional bodies to undertake its
planned trials, market its products and obtain cost
reimbursements for its products its future prospects
and profitability is likely to be materially and adversely
affected.
Mitigation measures employed by the Company
include: engagement of suitably qualified and
experienced persons with expertise in the regulation
of biological/cellular therapies; regular review of
evolving regulatory requirements and analysis of the
Company’s activities and plans against regulatory
expectations in key jurisdictions; and ensuring that the
expectations and uncertainties related to regulatory
approvals, and the timing of such approvals, are
included in business plans.
(c) Risks associated with partnership model
The Company is pursuing a license partnership
model, which typically involves entering into
commercial arrangements with other companies
by which Cynata licenses its Cymerus technology
to the partner in one or more indications and/or
geographies and the partner assumes responsibility
for progressing, and paying for, the clinical trials and
eventual commercialisation in that indication. This
strategy involves the risk that the Company will lose
control of the development timetable of its products
to its commercial partner, which may give rise to
an unanticipated delay in any commercial returns.
Further, the Company may be unable to enter into
arrangements with suitable commercial partners
in respect of relevant indications. If either of these
outcomes occurred, the Company’s business and
operations may be adversely affected.
Mitigation measures employed by the Company
include: performing rigorous due diligence on potential
partners; ensuring that the commercial terms
negotiated are fair and utilising expert legal advice to
ensure that appropriate warranties and commitments
are included in contracts, and that the contracts reflect
the agreed commercial position.
(d) Reliance on in-licensed assets
The Company relies on patents and intellectual
property that is in-licensed from Wisconsin Alumni
Research Foundation (WARF) and Cellular Dynamics
International, Inc (now an affiliate of Fujifilm
Corporation). These assets are not owned outright
by Cynata. The license arrangements contain terms
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Cynata Therapeutics Annual Report 2022/2023 and conditions, including obligations to make certain
milestone and royalty payments.
In the event that the Company breaches any of the
licence terms and conditions and cannot rectify the
breach within an appropriate time, there is a risk that
the licence may be terminated and the Company could
lose control of its assets. This would have a significant
adverse impact on the Company.
Mitigation measures employed by the Company
include: utilising expert professional advice in respect
of all of the Company’s commercial arrangements;
actively monitoring licence terms and obligations;
implementing product development strategies to
achieve milestones; financial management to ensure
that the Company can meet all financial obligations to
licensors.
(e) Manufacturing risk
The Company’s products are manufactured using a
unique, novel and highly specialised manufacturing
process. The Company relies on supply and
manufacturing relationships with third party contract
manufacturing organisations to manufacture its
products. An inability of these third-party contract
manufacturing organisations to continue to
manufacture the Company’s products in a timely,
economical and/or consistent manner, including any
scale up of manufacturing processes, or to maintain
legally compliant manufacturing to maintain product
supply, could adversely impact on the progress of the
Company’s development programs and potentially on
the financial performance of the Company.
Mitigation measures employed by the Company
include: performing rigorous due diligence on contract
manufacturers; engaging contract manufacturers with
strong track records and sufficient capability to meet
the Company’s foreseeable needs; and employing
a senior manager responsible for managing and
monitoring the performance of third parties including
contract manufacturers.
Operating and Financial Review
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Remuneration Report (audited)
This remuneration report, which forms part
of the directors’ report, sets out information
Contents
about the remuneration of Cynata
Therapeutics Limited’s key management
personnel for the financial year ended
The prescribed details for each person
covered by this report are detailed below
under the following headings:
30 June 2023.
1. Key management personnel
The term ‘key management personnel’ refers to
those persons having authority and responsibility for
planning, directing and controlling the activities of
the Group, directly or indirectly, including any director
(whether executive or otherwise) of the Group.
2. Remuneration policy
(a) Non-executive director remuneration
(b) Executive director remuneration
(c) Equity settled compensation
3. Relationship between the remuneration
policy and Company performance
4. Remuneration of key management
personnel
(a) Bonus and share-based payments
granted as compensation for the
current financial year
(i) Bonuses
(ii) Incentive share-based payment
arrangements
5. Key terms of employment contracts
6. Key management personnel equity
holdings
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Cynata Therapeutics Annual Report 2022/2023
1. Key management personnel
The directors and other key management personnel of
the Group during or since the end of the financial year
were:
Non-executive directors
Position
Dr Geoff Brooke
Dr Darryl Maher
Dr Paul Wotton
Ms Janine Rolfe1
Dr David Atkins6
Dr Stewart Washer2
Executive directors
Dr Ross Macdonald3
Dr Kilian Kelly4
Independent Non-Executive Chair
Independent Non-Executive Director
Independent Non-Executive Director
Independent Non-Executive Director
Non-Independent Non-Executive Director
Independent Non-Executive Director
Position
Managing Director & Chief Executive Officer
Managing Director & Chief Executive Officer
Other key management personnel
Position
Dr Jolanta Airey
Dr Suzanne Lipe5
1
2
3
Appointed 1 September 2022.
Resigned 1 July 2023.
Retired on 30 June 2023.
Chief Medical Officer
Vice President, Partner Engagement
4
5
6
Appointed Managing Director & Chief Executive Officer
on 1 July 2023. Was previously Chief Operating Officer.
Resigned 3 January 2023.
Appointed 1 July 2023.
Except as noted, the named persons held their current position for the whole of the financial year and since the
end of the financial year.
Remuneration Report (audited)
25
25
Remuneration Report (cont’d)
2. Remuneration policy
Cynata’s remuneration policy was developed by
the Board and has been designed to facilitate the
alignment of shareholder, director and executive
interests by:
z Providing levels of fixed remuneration and ‘at
risk’ remuneration sufficient to attract and retain
individuals with the skills and experience required
to build on and execute the Company’s business
strategy.
z Ensuring ‘at risk’ remuneration is contingent on
outcomes that grow shareholder value.
z Ensuring a suitable proportion of remuneration
is received as a share-based payment so that
rewards are realised through the performance of
the Company over the longer term.
Remuneration consists of:
z Fixed remuneration
z Short-term incentives (‘STI’)
z Long-term incentives (‘LTI’)
z Benefits (e.g., car parking, telephone, etc.)
The fixed remuneration component is determined
regarding market conditions, so that the Company can
recruit and retain the best available talent.
The Board’s policy regarding short- and long-term
incentives includes cash bonuses (STI) and the
granting of options under the Company’s Employee
Option Acquisition Plan (EOAP) (LTI). Options are
granted with an exercise price at a premium to the
underlying market value of shares at the time of
grant and vest over time subject to continuity of
employment. The term of options is set to ensure that
there is a reasonable expectation that the strategies
and actions of the recipients will, if successful,
produce above-market Company performance. This
policy aligns the interests of executives with those
of shareholders and creates a direct relationship
between individual remuneration outcomes and
Company performance.
2626
As at the date of this report, the Company has one
executive – the Chief Executive Office, five non-
executive directors and one Chief Medical Officer. As
set out below, total remuneration costs for the 2023
financial year were $1,904,001 down from $2,581,604
for the previous financial year.
(a) Non-executive Director Remuneration
Non-executive directors are remunerated by
way of fees, in the form of cash, superannuation
contributions, the award of options on appointment
or salary sacrifice into equity (both of which are
subject to shareholder approval). Fees for non-
executive directors are not linked to the performance
of the Company. To align directors’ interests with
shareholder interests, the directors are encouraged to
hold shares in the Company and do not participate in
schemes designed for the remuneration of executives.
Non-executive directors receive a superannuation
guarantee contribution required by the government,
which was 10.5% in the 2022/2023 financial year
and do not receive any other retirement benefits.
Individuals may choose to sacrifice part of their fees to
increase payments towards superannuation.
The Board’s policy is to remunerate non-executive
directors at market rates for comparable companies
for time, commitment and responsibilities. The Board
determines, subject to a fee pool as approved by
shareholders, payments to non-executive directors
and reviews their remuneration annually, based on
market practice, duties and accountability.
(b) Executive Director Remuneration
Executive directors receive fixed remuneration, based
upon performance, professional qualifications and
experience and superannuation benefits and under
certain circumstances, options and performance
incentives.
Cynata Therapeutics Annual Report 2022/2023 Executive Remuneration Objectives
An appropriate balance
of ‘fixed’ and ‘at-risk’
components.
Attract, motivate, and
retain executive talent.
The creation of reward
differentiation to drive
performance and
behaviours.
Shareholder value
creation through EOAP.
Total Remuneration
Fixed Remuneration
Short-Term Incentives
Long-Term Incentives
Set based on relevant market
relativities, performance,
qualifications, experience, and
location.
Set by reference to Company and
individual stretch performance
targets relevant to the specific
executive position.
Realisation dependent upon total
shareholder return.
Delivery
Base salary including
superannuation.
Payable in cash following review
of performance against Key Result
Areas (KRAs) and subject to Board
discretion.
Eligible executives may participate
in the Company’s equity-based
incentive scheme subject to Board
discretion. Equity options are issued
under the Company’s EOAP at a
premium to the underlying market
value of shares and typically vest
over a 3-year period.
Strategic Intent
Generally guided by the median
compared to relevant market-based
data taking into consideration
expertise and performance in roles.
Directed at achieving short-term
KRAs. Fixed Remuneration plus
STI to be positioned competitively
when compared to groups of
similar companies.
LTI is intended to align executive
performance with the Company’s
long-term strategy and
shareholders’ interests.
Overall remuneration policies are subject to the
discretion of the Board and can be changed to reflect
competitive and business conditions where it is in the
interests of the Company and shareholders to do so.
Executive remuneration and other terms of
employment are reviewed annually by the Board with
reference to the Company’s performance, individual
executive performance, comparable information from
industry sectors and other listed companies in similar
industries and where required, expert advice.
The Board has not formally engaged the services of a
remuneration consultant to provide recommendations
when setting the specific remuneration received by
directors or other key management personnel during
the financial year ended 30 June 2023.
Remuneration Report (audited)
27
27
Remuneration Report (cont’d)
Performance Measurement
(c) Equity Settled Compensation
The fair value of the equity which executives and
employees are granted is measured at grant date and
recognised as an expense over the vesting period, with
a corresponding increase to an equity account. The
fair value of shares is ascertained as the market bid
price. The fair value of options is ascertained using
a Black–Scholes pricing model which incorporates all
market vesting conditions. The number of shares and
options expected to vest is reviewed and adjusted at
each reporting date such that the amount recognised
for services received as consideration for the equity
instruments granted shall be based on the number of
equity instruments that eventually vest.
The performance of executives is measured against
criteria agreed annually with each executive and
is based upon the achievement of the strategic
objectives to secure shareholder value.
All incentive bonuses must be linked to predetermined
performance criteria. Key results areas are set
annually by the Board on the following basis:
z are specifically tailored to the responsibility areas
in which the executive is directly involved.
z target areas that the Board believe hold greater
potential for business expansion and shareholder
value.
z cover financial and non-financial as well as short
and long-term goals.
z represent stretch targets to encourage exemplary
performance.
KRAs for the Chief Executive Officer and Chief
Operating Officer are focused on the areas of
operational excellence, investor/stakeholder relations
and corporate partnering and alliances.
Performance in relation to KRAs is assessed annually
with incentives awarded depending on the number
and difficulty of the KRAs achieved. Following
this assessment, KRAs are reviewed by the Board
considering their desired and actual outcomes and
whether behaviours are reflective of responsible risk
management and sustainable business practices.
The efficacy of the KRAs is assessed in relation to the
Company’s goals and shareholder wealth, before the
KRAs are set for the following year.
The Board may, however, exercise its discretion in
relation to approving incentives, bonuses, and options,
and can decide on changes. Any change must be
justified by reference to measurable performance
criteria.
2828
Cynata Therapeutics Annual Report 2022/2023 3. Relationship between the Remuneration Policy and
Company Performance
The table below sets out summary information about
the Group’s earnings and movements in shareholder
wealth for the five (5) years to 30 June 2023:
The Board considers at this time, evaluation of
the Group’s financial performance using generally
accepted measures such as profitability, total
shareholder return or per company comparison are
either not relevant or difficult to objectively quantify as
the Group is pre-revenue and at an early stage in the
implementation of a commercialisation strategy that
includes the development of a novel life sciences (i.e.
therapeutic stem cell) technology and the identification
and execution of business opportunities as outlined in
the directors’ report.
Other income
Net loss before tax
Net loss after tax
30 June 2023 30 June 2022 30 June 2021 30 June 2020 30 June 2019
$
$
$
$
$
2,007,179
7,835,174
1,688,351
7,153,903
1,569,103
14,277,495
5,445,172
7,689,683
3,639,100
8,472,146
14,277,495
5,445,172
7,689,683
3,639,100
8,472,146
Share price at start of year
Share price at end of year
Basic/diluted loss per share (cents)
0.360
0.125
9.84
0.505
0.360
3.80
0.610
0.505
5.90
1.245
0.610
3.48
1.365
1.245
8.48
Remuneration Report (audited)
29
29
Remuneration Report (cont’d)
4. Remuneration of key management personnel
Short-term employee benefits
Salary &
fees
Cash
bonus
Other
$
113,208
$
-
$
-
2023
Directors
G. Brooke
R. Macdonald1
372,178
13,721
(27,001)
S. Washer2
P. Wotton
D. Maher
J. Rolfe3
Other KMP
K. Kelly4
S. Lipe5
J. Airey6
Total
51,226
56,605
51,226
47,438
-
-
-
-
-
-
-
-
333,860
18,180
(3,802)
90,827
-
(9,274)
280,395
14,637
10,275
Post-
employment
benefits
Super-
annuation
$
-
27,355
5,379
-
5,379
-
27,500
11,581
27,500
Share-based
payment
Options
Total
Value of
options as
proportion of
remuneration
$
$
%
127,473
240,681
95,606
481,859
19,122
19,122
19,122
7,869
75,727
75,727
75,727
55,307
37,757
413,495
3,776
96,910
55,761
388,568
52.96%
19.84%
25.25%
25.25%
25.25%
14.23%
9.13%
3.90%
14.35%
20.25%
1,396,963
46,538
(29,802)
104,694
385,608
1,904,001
Dr Macdonald retired from the Board on 30 June 2023.
Amounts in ‘Other’ represent annual leave and long
service leave accrued in accordance with AASB 119
Employee Benefits. The amount of $13,721 under ‘Cash
bonus’ represent bonus accrued for the financial year
2023 and paid subsequent to the financial year 2023.
Following the retirement of Dr Macdonald, an amount of
$151,842 representing the net of six months’ payment
of the annual salary and net leave payments was paid
subsequent to the financial year 2023.
Resigned 1 July 2023.
Appointed 1 September 2022.
4
5
6
Appointed Managing Director & Chief Executive Officer
on 1 July 2023 following the retirement of Dr Macdonald.
Dr Kelly was the Chief Operating Officer for the financial
year 2023. Amounts in ‘Other’ represent annual leave
and long service leave accrued in accordance with AASB
119 Employee Benefits. The amount of $18,180 under
‘Cash bonus’ represent potential bonus accrued for the
financial year 2023.
Resigned 3 January 2023. Amounts in ‘Other’ represent
annual leave accrued and paid out on resignation in
accordance with AASB 119 Employee Benefits.
Amounts in ‘Other’ represent annual leave accrued in
accordance with AASB 119 Employee Benefits.
1
2
3
3030
Cynata Therapeutics Annual Report 2022/2023 Short-term employee benefits
Salary &
fees
Cash
bonus
Other
$
110,000
$
-
$
-
2022
Directors
G. Brooke
R. Macdonald1
358,750
55,620
10,212
S. Washer
P. Wotton
D. Maher
Other KMP
K. Kelly1
S. Lipe1
J. Airey1,2
Total
50,000
55,000
50,000
-
-
-
-
-
-
312,500
40,800
1,086
168,899
34,452
(2,041)
203,000
33,600
12,281
Post-
employment
benefits
Super-
annuation
$
-
27,500
5,000
-
5,000
27,500
20,335
20,300
Share-based
payment
Options
Total
$
$
351,379
461,379
263,534
715,616
52,707
107,707
52,707
107,707
52,707
107,707
117,495
499,381
11,750
233,395
79,531
348,712
Value of
options as
proportion of
remuneration
76.16%
36.83%
48.94%
48.94%
48.94%
23.53%
5.03%
22.81%
38.03%
1,308,149
164,472
21,538
105,635
981,810
2,581,604
1
Amounts in ‘Other’ represent annual leave and long
service leave (Dr Macdonald and Dr Kelly only) accrued
in accordance with AASB 119 Employee Benefits. The
amounts of $55,620 for Dr Macdonald, $40,800 for Dr
Kelly, $34,452 for Dr Lipe and $33,600 for Dr Airey under
‘Cash bonus’ represent potential bonus accrued for the
financial year 2022.
2
Appointed 11 October 2021.
Remuneration Report (audited)
31
31
Remuneration Report (cont’d)
(a) Bonuses and share-based payments granted as
compensation for the current financial year
No other cash bonuses were granted to key
management personnel during 2023.
(i) Bonuses
(ii) Employee share option plan
An STI payable as cash of $55,620 to Dr Macdonald,
$40,800 to Dr Kelly, $33,600 to Dr Airey and $34,452
to Dr Lipe was accrued in the 2022 accounts.
An STI payable as cash of $13,721 was paid to
Dr Macdonald subsequent to 30 June 2023. This
amount was accrued in the 2023 accounts. A
potential STI of $18,180 for Dr Kelly and $14,637 for
Dr Airey was accrued in the 2023 accounts. These
amounts are payable subsequent to 30 June 2023.
Allocation of STIs is determined by attainment of
short and medium term KRAs which are considered
to be important drivers of value and typical within
the biotechnology industry for a company at Cynata’s
stage of development. For example, achievement
of specified development, clinical, regulatory and
commercial milestones.
Cynata Therapeutics Limited operates an ownership-
based scheme for executives and senior employees
of the Group. In accordance with the provisions of
the plan, as approved by shareholders at a previous
annual general meeting, executives and senior
employees may be granted options to purchase
parcels of ordinary shares.
Each employee share option converts to one ordinary
share of Cynata Therapeutics Limited on exercise.
No amounts are paid or payable by the recipient
on receipt of the option. The options carry neither
rights to dividends nor voting rights. Options may be
exercised at any time from the date of vesting to the
date of their expiry.
Terms and conditions of share-based payment
arrangements affecting remuneration of key
management personnel in the current financial year or
future financial years:
Option
series
Number
Grant date
Expiry date
Exercise price
Grant date
fair value
Vesting date
CYPOPT12 (i)
300,000
17 May 2019
16 May 2024
CYPOPT14 (ii)
1,100,000
19 Aug 2020
18 Aug 2024
CYPOPT16 (iii)
4,400,000
24 Nov 2020
29 Nov 2025
CYPOPT17 (iv)
1,000,000
11 Oct 2021
11 Oct 2025
CYPOPT18 (v)
300,000
22 Nov 2022
23 Nov 2027
CYPOPT19 (vi)
2,000,000
30 Jun 2023
30 Jun 2028
$2.110
$0.970
$0.970
$0.890
$0.51
$0.176
$0.3838
$0.4152
$0.4927
$0.156
$0.135
n/a
Vested
Various
Various
Various
Various
Various
(i) Unlisted options issued to Dr Brooke pursuant to the
(iv) Unlisted options issued to Dr Airey pursuant to an
terms of his appointment as non-executive director.
Employee Option Acquisition Plan.
(ii) Unlisted options issued to employees of the Company
pursuant to an Employee Option Acquisition Plan.
(v) Unlisted options issued to Ms Rolfe pursuant to the
terms of her appointment as non-executive director.
(iii) Unlisted options issued to Directors pursuant to an
(vi) Unlisted options issued to Dr Kelly pursuant to the
Employee Option Acquisition Plan.
terms of his appointment as Managing Director & CEO
following the retirement of Dr Macdonald.
3232
Cynata Therapeutics Annual Report 2022/2023 There are no further services or performance
criteria that need to be met in relation to options
granted under series CYPOPT12 above, and as a
consequence the beneficial interest has vested to the
recipients. There has been no alteration of the terms
and conditions of the above share-based payment
arrangements since the grant date.
Details of share-based payments granted as
compensation to key management personnel during
the current financial year:
Name
Option series
No. granted
No. vested
J. Rolfe
K. Kelly
CYPOPT18
CYPOPT19
300,000
2,000,000
58,331
-
During the financial year
% of grant
vested
% of grant
forfeited
$
19.4%
-
$
n/a
-
No share options were exercised by key management personnel during the year (2022: nil).
5. Key terms of employment contracts
Director/Employee
Remuneration / Fees
Performance-based
remuneration criteria
Notice period
Dr Geoff Brooke
Effective 1 September 2022,
n/a
a fee of $113,850 per annum
excluding GST. From 1 July
to 31 August 2022, a fee
of $110,000 per annum
excluding GST.
The appointment may be
terminated if Dr Brooke gives
notice of resignation and
the appointment may be
terminated immediately if Dr
Brooke becomes disqualified
or prohibited by law from
being or acting as a director
or from being involved in the
management of a company.
Dr Ross Macdonald
A salary of $399,768
Eligible to receive an annual
Term of renewed agreement
(retired from the Board on
per annum including
STI assessed against
– ongoing until terminated by
30 June 2023)
superannuation.
Company and Individual
agreement with both parties
KRAs and at the discretion of
(by giving 6 months’ written
the Board.
notice) or terminated by the
Company with reasons.
Remuneration Report (audited)
33
33
Remuneration Report (cont’d)
Director/Employee
Remuneration / Fees
Performance-based
remuneration criteria
Notice period
The appointment may be
terminated if Dr Washer
gives notice of resignation
and the appointment may be
terminated immediately if Dr
Washer becomes disqualified
or prohibited by law from
being or acting as a director
or from being involved in the
management of a company.
The appointment may be
terminated immediately by
the Company if Dr Wotton
becomes disqualified or
is prohibited by law from
being or acting as director
or from being involved in the
management of a company.
The appointment may be
terminated if Dr Maher gives
notice of resignation and
the appointment may be
terminated immediately if Dr
Maher becomes disqualified
or prohibited by law from
being or acting as a director
or from being involved in the
management of a company.
The appointment may be
terminated if Ms Rolfe gives
notice of resignation and
the appointment may be
terminated immediately if Ms
Rolfe becomes disqualified
or prohibited by law from
being or acting as a director
or from being involved in the
management of a company.
Dr Stewart Washer
Effective 1 September
n/a
(resigned 1 July 2023)
2022, a fee of $56,925 per
annum inclusive of statutory
superannuation. From 1 July
to 31 August 2022, a fee of
$55,000 per annum inclusive
of statutory superannuation.
Dr Paul Wotton
Effective 1 September 2022,
n/a
a fee of $56,925 per annum.
From 1 July to 31 August
2022, a fee of $55,000 per
annum.
Dr Darryl Maher
Effective 1 September
n/a
2022, a fee of $56,925 per
annum inclusive of statutory
superannuation. From 1 July
to 31 August 2022, a fee of
$55,000 per annum inclusive
of statutory superannuation.
Ms Janine Rolfe
Ms Rolfe was appointed
n/a
as non-executive director
on 1 September 2022. A
fee of $56,925 per annum
excluding GST.
3434
Cynata Therapeutics Annual Report 2022/2023 Director/Employee
Remuneration / Fees
Performance-based
remuneration criteria
Notice period
Dr Kilian Kelly
Effective 1 July 2023, a salary
Eligible to participate in the
The contract may be
(appointed MD/CEO on 1 July
of $400,000 per annum
Company’s equity-based
terminated by either party
2023)
including superannuation.
incentive scheme and an
providing 3 months’ notice.
For the financial year
incentive payment of up to
2023, a salary of $360,000
30% of the annual salary
per annum including
and based on attainment
superannuation.
of agreed performance
indicators.
Dr Jolanta Airey
A salary of $317,135 per
Eligible to participate in the
The contract may be
annum inclusive of statutory
Company’s equity-based
terminated by either party
superannuation. Dr Airey is
incentive scheme and an
providing 3 months’ notice.
employed on a part-time (0.8
incentive payment of up to
FTE) basis.
20% of the annual salary
and based on attainment
of agreed performance
indicators.
Dr David Atkins
Effective 1 July 2023, a
n/a
(appointed 1 July 2023)
fee of $56,925 per annum
excluding GST.
The appointment may be
terminated if Dr Atkins
gives notice of resignation
and the appointment may
be terminated immediately
if Dr Atkins becomes
disqualified or prohibited
by law from being or acting
as a director or from being
involved in the management
of a company.
Remuneration Report (audited)
35
35
Remuneration Report (cont’d)
6. Key management personnel equity holdings
Fully paid ordinary shares of Cynata Therapeutics Limited
Balance at
1 July 2022
No.
117,809
2023
G. Brooke
R. Macdonald (i)
2,070,050
S. Washer (ii)
2,284,856
P. Wotton
D. Maher
J. Rolfe (iii)
K. Kelly (iv)
S. Lipe (v)
J. Airey
175,775
-
-
494,013
-
-
(i) Retired on 30 June 2023.
(ii) Resigned 1 July 2023.
(iii) Appointed 1 September 2022.
Balance at
1 July 2021
No.
77,000
2022
G. Brooke
R. Macdonald
2,070,050
S. Washer
P. Wotton
D. Maher
K. Kelly
S. Lipe
J. Airey (i)
2,224,856
175,775
-
494,013
-
-
(i) Appointed 11 October 2021.
Received on
exercise of
options
No.
-
-
-
-
-
-
-
-
Received on
exercise of
options
No.
-
-
-
-
-
-
-
-
Shares
acquired
Shares
disposed
Balance at
resignation
Balance at
30 June 2023
No.
139,534
55,813
139,534
139,534
50,000
116,279
31,95
-
-
No.
-
-
-
-
-
-
-
-
-
No.
n/a
-
-
-
-
-
-
-
-
No.
257,343
2,125,863
2,364,390
315,309
50,000
116,279
525,508
-
-
(iv) Appointed Managing Director & CEO on 1 July 2023
following the retirement of Dr Macdonald.
(v) Resigned 3 January 2023.
Shares
acquired
Shares
disposed
Balance at
resignation
Balance at
30 June 2022
No.
40,809
-
60,000
-
-
-
-
-
No.
No.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
117,809
2,070,050
2,284,856
175,775
-
494,013
-
-
3636
Cynata Therapeutics Annual Report 2022/2023 Share options of Cynata Therapeutics Limited
Balance
at 1 July
2022
Granted
as comp-
ensation Lapsed (ii) Exercised
Balance
at 30 June
2023
Balance
vested at
30 June
2023
Vested and
exercisable
Options
vested
during
year
2023
No.
No.
No.
No.
No.
No.
No.
No.
G. Brooke
2,300,000
69,767
R. Macdonald (i) 1,500,000
27,907
S. Washer (ii)
300,000
69,767
P. Wotton
300,000
69,767
D. Maher
300,000
25,000
J. Rolfe (iii)
-
358,140
K. Kelly (iv)
1,000,000
2,015,748
-
-
-
-
-
-
-
S. Lipe (v)
100,000
J. Airey
1,000,000
-
-
(100,000)
-
-
-
-
-
-
-
-
-
-
2,369,767
2,091,972
2,091,972
736,427
1,527,907
1,319,553
1,319,553
527,899
369,767
328,090
328,090
169,763
369,767
328,090
328,090
169,763
325,000
283,323
283,323
124,996
358,140
116,471
116,471
116,471
3,015,748
987,970
987,970
349,081
-
-
-
-
1,000,000
500,006
500,006
300,006
(i) Retired on 30 June 2023.
(ii) Resigned 1 July 2023.
(iii) Appointed 1 September 2023.
(iv) Appointed Managing Director & CEO on 1 July 2023
following the retirement of Dr Macdonald.
(v) Resigned 3 January 2023.
Balance
at 1 July
2021
Granted
as comp-
ensation
Lapsed Exercised
Balance at
30 June
2022
Balance
vested at
30 June
2022
Vested and
exercisable
Options
vested
during
year
2022
No.
No.
No.
No.
No.
No.
No.
No.
G. Brooke
2,300,000
R. Macdonald
1,500,000
S. Washer
P. Wotton
D. Maher
K. Kelly
S. Lipe
J. Airey (i)
300,000
300,000
300,000
1,750,000
475,000
-
-
-
-
-
-
-
-
-
-
-
-
(750,000)
(375,000)
-
1,000,000
-
-
-
-
-
-
-
-
-
2,300,000
1,355,545
1,355,545
666,660
1,500,000
791,654
791,654
499,992
300,000
158,327
158,327
99,996
300,000
158,327
158,327
99,996
300,000
158,327
158,327
99,996
1,000,000
638,889
638,889
333,333
100,000
63,889
63,889
33,333
1,000,000
200,000
200,000
200,000
(i) Appointed 11 October 2021
(ii) 1,125,000 options granted to KMP in the 2019 financial
year lapsed unexercised during the 2022 financial year.
Remuneration Report (audited)
37
37
Remuneration Report (cont’d)
All share options issued to key management personnel
were made in accordance with the provisions of the
Employee Option Acquisition Plan.
Further details of the Employee Option Acquisition
Plan and share options are contained in note 18 to the
financial statements.
This is the end of the audited remuneration report
This directors’ report is signed in accordance with a
resolution of directors made pursuant to s.298(2) of
the Corporations Act 2001.
On behalf of the directors.
Dr Kilian Kelly
Managing Director & Chief Executive Officer
Melbourne,
28 August 2023
3838
Cynata Therapeutics Annual Report 2022/2023 Auditor’s Independence
Declaration
PO Box 1908
West Perth WA 6872
Australia
Level 2, 40 Kings Park Road
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
28 August 2023
Board of Directors
Cynata Therapeutics Limited
Level 3, 100 Cubitt Street
Cremorne, Victoria 3121
Dear Directors
RE:
CYNATA THERAPEUTICS LIMITED
In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following
declaration of independence to the directors of Cynata Therapeutics Limited.
As Audit Director for the audit of the financial statements of Cynata Therapeutics Limited for the year
ended 30 June 2023, I declare that to the best of my knowledge and belief, there have been no
contraventions of:
(i)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(ii)
any applicable code of professional conduct in relation to the audit.
Yours sincerely
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
(An Authorised Audit Company)
Samir Tirodkar
Director
Liability limited by a scheme approved under Professional Standards Legislation
Stantons Is a member of the Russell
Bedford International network of firms
Auditor’s Independence Declaration
39
39
Independent Auditor’s Report
4040
Cynata Therapeutics Annual Report 2022/2023 Liability limited by a scheme approved under Professional Standards Legislation PO Box 1908 West Perth WA 6872 Australia Level 2, 40 Kings Park Road West Perth WA 6005 Australia Tel: +61 8 9481 3188 Fax: +61 8 9321 1204 ABN: 84 144 581 519 www.stantons.com.au Stantons Is a member of the Russell Bedford International network of firms INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF CYNATA THERAPEUTICS LIMITED Report on the Audit of the Financial Report Opinion We have audited the financial report of Cynata Therapeutics Limited (the Company) and its subsidiaries (collectively, the “Group”), which comprises the consolidated statement of financial position as at 30 June 2023, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies, and the directors' declaration. In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the Group’s financial position as at 30 June 2023 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.
Auditor’s Independence Declaration
41
41
Key Audit Matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current year. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Key Audit Matter How the matter was addressed in the audit Carrying value of intangible assets, amortisation and impairment At 30 June 2023, the carrying amount of the Group’s intangible assets (patents) amounted to $2,132,600 (2022: $2,412,565) as disclosed in Note 11 to the consolidated financial statements. The intangible assets are considered a key audit matter as they represent 13% of the net assets of the Group and also due to the level of judgement required from the management in assessing their recoverable amounts. Our audit procedures included, inter alia, the following: i. Reviewed ASX announcements and minutes of the Board of Directors meetings to obtain an understanding of the significant activities undertaken by the Group during the year; ii. Checked the patent register to obtain reasonable assurance any patents that have expired are written off; iii. Reviewed management’s assessment of the carrying value of the patents and assessed the appropriateness and relevance of the information provided to justify the carrying value of the patents; iv. Checked the amortisation charge to ensure that the patents are being amortised over the 20-year patents’ life; and v. Evaluated the adequacy of the disclosures in the consolidated financial assets. Other Information The directors are responsible for the other information. The other information comprises the information included in the Group's annual report for the year ended 30 June 2023 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 accordingly we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Directors for the Financial Report The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. Independent Auditor’s Report (cont’d)
4242
Cynata Therapeutics Annual Report 2022/2023 In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or has no realistic alternative but to do so. Auditor's Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Directors, as well as evaluating the overall presentation of the financial report. We conclude on the appropriateness of the Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern. We evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation. We obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the financial report. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion. We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in Internal control that we identify during our audit. Auditor’s Independence Declaration
43
43
The Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements. We also provide the Directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. Report on the Remuneration Report Opinion on the Remuneration Report We have audited the Remuneration Report included in the directors’ report for the year ended 30 June 2023. In our opinion, the Remuneration Report of Cynata Therapeutics Limited for the year ended 30 June 2023 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. STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD (An Authorised Audit Company) Samir Tirodkar Director West Perth, Western Australia 28 August 2023 Directors’ Declaration
The directors declare that:
(a) in the directors’ opinion, there are reasonable
grounds to believe that the Group will be able to
pay its debts as and when they become due and
payable;
(b) in the directors’ opinion, the attached financial
statements are in compliance with International
Financial Reporting Standards, as stated in note 1
to the financial statements;
(c)
in the directors’ opinion, the attached financial
statements and notes thereto are in accordance
with the Corporations Act 2001, including
compliance with accounting standards and giving
a true and fair view of the financial position and
performance of the Group; and
(d) the directors have been given the declarations
required by s.295A of the Corporations Act 2001.
Signed in accordance with a resolution of the directors
made pursuant to s.295(5) of the Corporations Act
2001.
On behalf of the directors,
Dr Kilian Kelly
Managing Director & Chief Executive Officer
Melbourne,
28 August 2023
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Cynata Therapeutics Annual Report 2022/2023 Auditor’s Independence Declaration
45
45
Financial Statements
46
Cynata Therapeutics Annual Report 2022/2023 Consolidated statement of profit or loss
and other comprehensive income
for the year ended 30 June 2023
Interest income
Other income
Total revenue and other income
Product development costs
Employee benefits expenses
Amortisation expenses
Share based payment expenses
Other expenses
(Loss) before income tax
Income tax expense
(Loss) for the year
Other comprehensive income, net of income tax
Items that will not be reclassified subsequently to profit or loss
Items that may be reclassified subsequently to profit or loss
Exchange differences on translating foreign operations
Other comprehensive income for the year, net of income tax
Total comprehensive loss for the year
(Loss) for the year attributable to:
Owners of Cynata Therapeutics Limited
Note
6
6
7
11
7,18
7
8
7
Year ended
30 June 2023
30 June 2022
$
352,869
1,654,310
2,007,179
$
64,749
7,770,425
7,835,174
(12,394,235)
(8,824,894)
(1,653,145)
(1,920,709)
(279,965)
(326,546)
(279,965)
(1,032,104)
(1,630,783)
(1,222,674)
(14,277,495)
(5,445,172)
-
-
(14,277,495)
(5,445,172)
-
-
-
-
-
-
(14,277,495)
(5,445,172)
(14,277,495)
(5,445,172)
Total comprehensive loss for the year attributable:
Owners of Cynata Therapeutics Limited
(14,277,495)
(5,445,172)
(Loss) per share:
Basic and diluted (cents per share)
9
(9.84)
(3.80)
The above consolidated statement of profit or loss and other comprehensive income should be read in
conjunction with the accompanying notes.
Financial Statements
47
47
Consolidated statement of financial position
as at 30 June 2023
Current assets
Cash and cash equivalents
Trade and other receivables
Prepayments
Total current assets
Non-current assets
Intangibles
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Provisions
Total current liabilities
Total liabilities
Net assets
Equity
Issued capital
Option reserves
Foreign currency translation reserve
Accumulated losses
Total equity
30 June 2023
30 June 2022
Note
$
$
21
10
11
12
13
16,167,356
23,798,046
367,082
326,728
100,389
237,029
16,861,166
24,135,464
2,132,600
2,132,600
2,412,565
2,412,565
18,993,766
26,548,029
2,067,391
2,327,368
192,894
2,260,285
2,260,285
260,576
2,587,944
2,587,944
16,733,481
23,960,085
15
16.1
16.2
81,624,596
74,900,251
7,677,967
7,351,421
4,724
4,724
(72,573,806)
(58,296,311)
16,733,481
23,960,085
The above consolidated statement of financial position should be read in conjunction with the accompanying
notes.
4848
Cynata Therapeutics Annual Report 2022/2023 Consolidated statement of changes in equity
for the year ended 30 June 2023
Issued
Capital
Option
Reserve
Foreign
currency
translation
reserve
Accum-
ulated
losses
$
$
$
$
Total
$
Balance at 1 July 2021
74,900,251
6,319,317
4,724 (52,851,139)
28,373,153
Loss for the year
Other comprehensive income for the year, net
of tax
Total comprehensive income/(loss) for the year
Share based payments (refer to note 16.1)
-
-
-
-
-
-
-
1,032,104
-
-
-
-
(5,445,172)
(5,445,172)
-
-
(5,445,172)
(5,445,172)
-
1,032,104
Balance at 30 June 2022
74,900,251
7,351,421
4,724 (58,296,311)
23,960,085
$
$
$
$
$
Balance at 1 July 2022
74,900,251
7,351,421
4,724 (58,296,311)
23,960,085
Loss for the year
Other comprehensive income for the year, net
of tax
Total comprehensive income/(loss) for the year
Issue of ordinary shares (refer to note 15)
Share issue costs
-
-
-
7,042,169
(317,824)
-
-
-
-
-
Share based payments (refer to note 16.1)
-
326,546
-
-
-
-
-
-
(14,277,495)
(14,277,495)
-
-
(14,277,495)
(14,277,495)
-
-
-
7,042,169
(317,824)
326,546
Balance at 30 June 2023
81,624,596
7,677,967
4,724 (72,573,806)
16,733,481
The above consolidated statement of changes in equity should be read in conjunction with the accompanying
notes.
Financial Statements
49
49
Consolidated statement of cash flows
for the year ended 30 June 2023
Cash flows from operating activities
Payments to suppliers and employees
Interest received
Research and development tax refund received
Fujifilm Option License Fee received
Development costs paid
Year ended
30 June 2023
30 June 2022
Note
$
$
(3,458,273)
(3,185,386)
286,828
1,654,310
50,343
832,677
-
6,731,903
(12,765,594)
(7,727,868)
Net cash (used in) operating activities
21.1
(14,282,729)
(3,298,331)
Cash flows from financing activities
Proceeds from issue of equity instruments of the Company
Payment for share issue costs
Repayment by related parties
Net cash provided by financing activities
15
14
7,042,169
(317,824)
-
6,724,345
-
-
210,124
210,124
Net (decrease) in cash and cash equivalents
(7,558,384)
(3,088,207)
Cash and cash equivalents at the beginning of the year
23,798,046
26,716,670
Effects of exchange rate changes on the balance of cash held in foreign
currencies
(72,306)
169,583
Cash and cash equivalents at the end of the year
21
16,167,356
23,798,046
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
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Cynata Therapeutics Annual Report 2022/2023 Financial Statements
51
Notes
Notes to the consolidated financial statements
for the year ended 30 June 2023
2. Application of new and revised
Accounting Standards
2.1 Amendments to Accounting Standards and
new Interpretations that are mandatorily
effective for the current year
The Group has adopted all of the new and revised
Standards and Interpretations issued by the
Australian Accounting Standards Board (the AASB)
that are relevant to its operations and effective for an
accounting period that begins on or after 1 July 2022.
New and revised Standards and amendments thereof
and Interpretations effective for the current financial
year that are relevant to the Group include:
z
AASB 2020-3 Amendments to Australian
Accounting Standards – Annual Improvements
2018-2020 and Other Amendments
This Standard makes some small amendments to
a number of Standards including AASB 1, AASB
3, AASB 9, AASB 116, AASB 137 and AASB 141.
The adoption of this Amendment did not have a
significant impact on the disclosures or the amounts
recognised in the Group’s consolidated financial
statements.
1. General information
Statement of compliance
Cynata Therapeutics Limited (“the Company”) is a
listed public company incorporated in Australia. The
addresses of its registered office and principal place of
business are disclosed in the corporate directory to the
annual report.
The principal activities of the Company and its
controlled subsidiaries (“the Group”) are described in
the directors’ report.
These financial statements are general purpose
financial statements which have been prepared
in accordance with the Corporations Act 2001,
Accounting Standards and Interpretations and comply
with other requirements of the law.
The financial statements comprise the consolidated
financial statements of the Group. For the purposes of
preparing the consolidated financial statements, the
Company is a for-profit entity.
Accounting Standards include Australian Accounting
Standards. Compliance with Australian Accounting
Standards ensures that the financial statements and
notes of the Company and the Group comply with
International Financial Reporting Standards (‘IFRS’).
The financial statements were authorised for issue by
the directors on 28 August 2023.
5252
Cynata Therapeutics Annual Report 2022/2023 3. Significant accounting policies
z
Level 3 inputs are unobservable inputs for the
asset or liability.
3.1 Basis of preparation
3.2 Basis of consolidation
The consolidated financial statements have been
prepared on the basis of historical cost, except for
certain financial instruments that are measured at
revalued amounts or fair values at the end of each
reporting period, as explained in the accounting
policies below. Historical cost is generally based on
the fair values of the consideration given in exchange
for goods and services. All amounts are presented in
Australian dollars (“$”), unless otherwise noted.
Fair value is the price that would be received to sell
an asset or paid to transfer a liability in an orderly
transaction between market participants at the
measurement date, regardless of whether that price
is directly observable or estimated using another
valuation technique. In estimating the fair value of
an asset or liability, the Group takes into account
the characteristics of the asset or liability at the
measurement date. Fair value for measurement and/
or disclosure purposes in these consolidated financial
statements is determined on such a basis, except for
share-based payment transactions that are within
the scope of AASB 2 Share-based Payment, leasing
transactions that are within the scope of AASB 16
Leases, and measurements that have some similarities
to fair value but are not fair value, such as net
realisable value in AASB 102 Inventories or value in
use in AASB 136 Impairment of Assets.
In addition, for financial reporting purposes, fair value
measurements are categorised into Level 1, 2 or 3
based on the degree to which inputs to the fair value
measurements are observable and the significance of
the inputs to the fair value measurement in its entirety,
which are described as follows:
z
z
Level 1 inputs are quoted prices (unadjusted) in
active markets for identical assets or liabilities that
the entity can access at the measurement date;
Level 2 inputs are inputs, other than quoted prices
included in Level 1, that are observable for the
asset or liability, either directly or indirectly; and
The consolidated financial statements incorporate
the financial statements of the Company and entities
controlled by the Company and its subsidiaries.
Control is achieved when the Company:
z
z
z
has power over the investee;
is exposed, or has rights, to variable returns from
its involvement with the investee; and
has the ability to use its power to affect its
returns.
The Company reassesses whether or not it controls an
investee if facts and circumstances indicate that there
are changes to one or more of the three elements of
control listed above.
Consolidation of a subsidiary begins when the
Company obtains control over the subsidiary and
ceases when the Company loses control of the
subsidiary. Specifically, income and expenses of a
subsidiary acquired or disposed of during the year
are included in the consolidated statement of profit or
loss and other comprehensive income from the date
the Company gains control until the date when the
Company ceases to control the subsidiary.
Profit or loss and each component of other
comprehensive income are attributed to the owners
of the Company and to the non-controlling interests.
Total comprehensive income of subsidiaries is
attributed to the owners of the Company and to the
non-controlling interests even if this results in the non-
controlling interests having a deficit balance.
When necessary, adjustments are made to the
financial statements of subsidiaries to bring their
accounting policies into line with the Group’s
accounting policies. All intragroup assets and
liabilities, equity, income, expenses and cash flows
relating to transactions between members of the
Group are eliminated in full on consolidation.
Notes
53
53
3.3 Business combinations
Acquisitions of businesses are accounted for using
the acquisition method. The consideration transferred
in a business combination is measured at fair value
which is calculated as the sum of the acquisition-
date fair values of assets transferred by the Group,
liabilities incurred by the Group to the former owners
of the acquiree and the equity instruments issued by
the Group in exchange for control of the acquiree.
Acquisition-related costs are recognised in profit or
loss as incurred.
At the acquisition date, the identifiable assets
acquired and the liabilities assumed are recognised at
their fair value, except that:
z
z
z
deferred tax assets or liabilities and assets
or liabilities related to employee benefit
arrangements are recognised and measured in
accordance with AASB 112 Income Taxes and
AASB 119 Employee Benefits respectively;
liabilities or equity instruments related to share-
based payment arrangements of the acquiree
or share-based payment arrangements of the
Group entered into to replace share-based
payment arrangements of the acquiree are
measured in accordance with AASB 2 Share-
based Payment at the acquisition date; and
assets (or disposal groups) that are classified as
held for sale in accordance with AASB 5 Non-
current Assets Held for Sale and Discontinued
Operations are measured in accordance with that
Standard.
Goodwill is measured as the excess of the sum of the
consideration transferred, the amount of any non-
controlling interests in the acquiree, and the fair value
of the acquirer’s previously held equity interest in the
acquiree (if any) over the net of the acquisition-date
amounts of the identifiable assets acquired and the
liabilities assumed. If, after reassessment, the net of
the acquisition-date amounts of the identifiable assets
acquired and liabilities assumed exceeds the sum
of the consideration transferred, the amount of any
non-controlling interests in the acquiree and the fair
value of the acquirer’s previously held interest in the
5454
acquiree (if any), the excess is recognised immediately
in profit or loss as a bargain purchase gain.
Non-controlling interests that are present ownership
interests and entitle their holders to a proportionate
share of the entity’s net assets in the event of
liquidation may be initially measured either at fair
value or at the non-controlling interests’ proportionate
share of the recognised amounts of the acquiree’s
identifiable net assets. The choice of measurement
basis is made on a transaction-by-transaction basis.
Other types of non-controlling interests are measured
at fair value or, when applicable, on the basis specified
in another Standard.
Where the consideration transferred by the Group
in a business combination includes assets or
liabilities resulting from a contingent consideration
arrangement, the contingent consideration is
measured at its acquisition-date fair value. Changes
in the fair value of the contingent consideration
that qualify as measurement period adjustments
are adjusted retrospectively, with corresponding
adjustments against goodwill. Measurement
period adjustments are adjustments that arise
from additional information obtained during the
‘measurement period’ (which cannot exceed one
year from the acquisition date) about facts and
circumstances that existed at the acquisition date.
The subsequent accounting for changes in the fair
value of contingent consideration that do not qualify
as measurement period adjustments depends on
how the contingent consideration is classified.
Contingent consideration that is classified as equity
is not remeasured at subsequent reporting dates and
its subsequent settlement is accounted for within
equity. Contingent consideration that is classified
as an asset or liability is remeasured at subsequent
reporting dates in accordance with AASB 9 Financial
Instruments, or AASB 137 Provisions, Contingent
Liabilities and Contingent Assets as appropriate, with
the corresponding gain or loss being recognised in
profit or loss.
Where a business combination is achieved in
stages, the Group’s previously held equity interest
in the acquiree is remeasured to its acquisition date
fair value and the resulting gain or loss, if any, is
Cynata Therapeutics Annual Report 2022/2023 recognised in profit or loss. Amounts arising from
interests in the acquiree prior to the acquisition
date that have previously been recognised in other
comprehensive income are reclassified to profit or loss
where such treatment would be appropriate if that
interest were disposed of.
If the initial accounting for a business combination is
incomplete by the end of the reporting period in which
the combination occurs, the Group reports provisional
amounts for the items for which the accounting is
incomplete. Those provisional amounts are adjusted
during the measurement period (see above), or
additional assets or liabilities are recognised, to
reflect new information obtained about facts and
circumstances that existed as of the acquisition date
that, if known, would have affected the amounts
recognised as of that date.
3.5 Revenue recognition
The Group has applied AASB 15 Revenue from
Contracts with Customers using the cumulative
effective method. The Group does not have any
revenue from contracts with customers.
3.5.1
Interest income
Interest income from a financial asset is recognised
when it is probable that the economic benefits will
flow to the Group and the amount of revenue can be
measured reliably. Interest income is accrued on a
time basis, by reference to the principal outstanding
and at the effective interest rate applicable, which
is the rate that exactly discounts estimated future
cash receipts though the expected life of the financial
asset to that asset’s net carrying amount on initial
recognition.
3.4 Goodwill
3.5.2 Other income
Goodwill arising on an acquisition of a business
is carried at cost as established at the date of the
acquisition of the business (see 3.3 above) less
accumulated impairment losses, if any.
Other income is generally income earned from
transactions outside the course of the Group’s ordinary
activities. Other income is recognised in profit or loss
when received.
For the purposes of impairment testing, goodwill is
allocated to each of the Groups’ cash-generating units
(or groups of cash-generating units) that is expected
to benefit from the synergies of the combination.
A cash-generating unit to which goodwill has been
allocated is tested for impairment annually, or more
frequently when there is an indication that the unit
may be impaired. If the recoverable amount of the
cash-generating unit is less than its carrying amount,
the impairment loss is allocated first to reduce the
carrying amount of any goodwill allocated to the unit
and then to the other assets of the unit pro rata based
on the carrying amount of each asset in the unit. Any
impairment loss for goodwill is recognised directly
in profit or loss. An impairment loss recognised for
goodwill is not reversed in subsequent periods. On
disposal of the relevant cash-generating unit, the
attributable amount of goodwill is included in the
determination of the profit or loss on disposal.
3.6 Foreign currencies
The individual financial statements of each group
entity are presented in the currency of the primary
economic environment in which the entity operates
(its functional currency). For the purpose of the
consolidated financial statements, the results and
financial position of each group entity are expressed
in Australian dollars (“$”), which is the functional
currency of the Company and the presentation
currency for the consolidated financial statements.
In preparing the financial statements of each
individual group entity, transactions in currencies
other than the entity’s functional currency (foreign
currencies) are recognised at the rates of exchange
prevailing at the dates of the transactions. At the end
of each reporting period, monetary items denominated
in foreign currencies are retranslated at the rates
prevailing at that date. Non-monetary items carried at
fair value that are denominated in foreign currencies
are translated at the rates prevailing at the date when
Notes
55
55
Significant accounting policies (cont’d)
the fair value was determined. Non-monetary items
that are measured in terms of historical cost in a
foreign currency are not retranslated.
For the purpose of presenting these consolidated
financial statements, the assets and liabilities
of the Group’s foreign operations are translated
into Australian dollars using the exchange rates
prevailing at the end of the reporting period. Income
and expense items are translated at the average
exchange rates for the period, unless exchange
rates fluctuated significantly during that period, in
which case the exchange rates at the dates of the
transactions are used. Exchange differences arising,
if any, are recognised in other comprehensive income
and accumulated in equity (and attributed to non-
controlling interests as appropriate).
Goodwill and fair value adjustments to identifiable
assets acquired and liabilities assumed through
acquisition of a foreign operation are treated as assets
and liabilities of the foreign operation and translated
at the rate of exchange prevailing at the end of each
reporting period. Exchange differences arising are
recognised in other comprehensive income.
3.7 Government grants
Government grants are not recognised until there is
reasonable assurance that the Group will comply with
the conditions attaching to them and that the grants
will be received.
Government grants are recognised in profit or loss on
a systematic basis over the periods in which the Group
recognises as expenses the related costs for which
the grants are intended to compensate. Specifically,
government grants whose primary condition is that
the Group should purchase, construct or otherwise
acquire non-current assets are recognised as
deferred revenue in the consolidated statement of
financial position and transferred to profit or loss on a
systematic and rational basis over the useful lives of
the related assets.
Government grants that are receivable as
compensation for expenses or losses already incurred
or for the purpose of giving immediate financial
support to the Group with no future related costs are
5656
recognised in profit or loss in the period in which they
become receivable.
3.8 Employee benefits
Short-term and long-term employee benefits
A liability is recognised for benefits accrued to
employees in respect of wages and salaries and
annual leave when it is probable that settlement will
be required and they are capable of being measured
reliably.
Liabilities recognised in respect of short-term
employee benefits are measured at their nominal
values using the remuneration rate expected to apply
at the time of settlement.
Liabilities recognised in respect of long-term employee
benefits are measured as the present value of the
estimated future cash outflows to be made by the
Group in respect of services provided by employees up
to reporting date.
3.9 Share-based payment arrangements
Equity-settled share-based payments to employees
and others providing similar services are measured at
the fair value of the equity instruments at the grant
date. Details regarding the determination of the fair
value of equity-settled share-based transactions are
set out in note 18.
The fair value determined at the grant date of the
equity-settled share-based payments is expensed on
a straight-line basis over the vesting period, based
on the Group’s estimate of equity instruments that
will eventually vest, with a corresponding increase
in equity. At the end of each reporting period, the
Group revises its estimate of the number of equity
instruments expected to vest. The impact of the
revision of the original estimates, if any, is recognised
in profit or loss such that the cumulative expense
reflects the revised estimate, with a corresponding
adjustment to the equity-settled employee benefits
reserve.
Equity-settled share-based payment transactions with
parties other than employees are measured at the fair
Cynata Therapeutics Annual Report 2022/2023 value of the goods or services received, except where
that fair value cannot be estimated reliably, in which
case they are measured at the fair value of the equity
instruments granted, measured at the date the entity
obtains the goods or the counterparty renders the
service.
from the initial recognition (other than in a business
combination) of assets and liabilities in a transaction
that affects neither the taxable profit nor the
accounting profit. In addition, deferred tax liabilities
are not recognised if the temporary difference arises
from the initial recognition of goodwill.
For cash-settled share-based payments, liability
is recognised for the goods or services acquired,
measured initially at the fair value of the liability. At
the end of each reporting period until the liability is
settled, and at the date of settlement, the fair value
of the liability is remeasured, with any changes in fair
value recognised in profit or loss for the year.
3.10 Taxation
Income tax expense represents the sum of the tax
currently payable and deferred tax.
3.10.1 Current tax
The tax currently payable is based on taxable profit for
the year. Taxable profit differs from profit before tax as
reported in the consolidated statement of profit or loss
and other comprehensive income because of items
of income or expense that are taxable or deductible
in other years and items that are never taxable or
deductible. The Group’s current tax is calculated using
the tax rates that have been enacted or substantively
enacted by the end of the reporting period.
R&D rebates are accounted for on a cash basis and
included under other income.
3.10.2 Deferred tax
Deferred tax is recognised on temporary differences
between the carrying amounts of assets and liabilities
in the consolidated financial statements and the
corresponding tax bases used in the computation of
taxable profit. Deferred tax liabilities are generally
recognised for all taxable temporary differences.
Deferred tax assets are generally recognised for all
deductible temporary differences to the extent that
it is probable that taxable profits will be available
against which those deductible temporary differences
can be utilised. Such deferred tax assets and liabilities
are not recognised if the temporary difference arises
Deferred tax liabilities are recognised for taxable
temporary differences associated with investments
in subsidiaries and associates, and interests in joint
ventures, except where the Group is able to control the
reversal of the temporary difference and it is probable
that the temporary difference will not reverse in the
foreseeable future. Deferred tax assets arising from
deductible temporary differences associated with such
investments and interests are only recognised to the
extent that it is probable that there will be sufficient
taxable profits against which to utilise the benefits of
the temporary differences and they are expected to
reverse in the foreseeable future.
The carrying amount of deferred tax assets is
reviewed at the end of each reporting period and
reduced to the extent that it is no longer probable that
sufficient taxable profits will be available to allow all
or part of the asset to be recovered.
Deferred tax assets and liabilities are measured at
the tax rates that are expected to apply in the period
in which the liability is settled or the asset realised,
based on tax rates (and tax laws) that have been
enacted or substantively enacted by the end of the
reporting period. The measurement of deferred tax
liabilities and assets reflects the tax consequences
that would follow from the manner in which the
Group expects, at the end of the reporting period, to
recover or settle the carrying amount of its assets and
liabilities.
Deferred tax liabilities and assets are offset when
there is a legally enforceable right to set off current
tax assets against current tax liabilities and when they
relate to income taxes levied by the same authority
and the Group intends to settle its current tax assets
and liabilities on a net basis.
Notes
57
57
Significant accounting policies (cont’d)
3.10.3 Current and deferred tax for the year
Current and deferred tax are recognised in profit
or loss, except when they relate to items that are
recognised in other comprehensive income or directly
in equity, in which case the current and deferred tax
are also recognised in other comprehensive income
or directly in equity, respectively. Where current tax
or deferred tax arises from the initial accounting for a
business combination, the tax effect is included in the
accounting for the business combination.
3.11 Intangible assets
3.11.1 Intangible assets acquired in a business
combination
Intangible assets acquired in a business combination
and recognised separately from goodwill are initially
recognised at their fair value at the acquisition date
(which is regarded as their cost).
Intangibles have been identified as all granted patents
and patent applications. They have a finite useful life
and are carried at cost less accumulated amortisation.
Amortisation is calculated using the straight-line
method over the expected life of the assets, as follows:
z
Patents — 20 years
3.11.2 Derecognition of intangible assets
An intangible asset is derecognised on disposal,
or when no future economic benefits are expected
from use or disposal. Gains or losses arising from
derecognition of an intangible asset, measured as the
difference between the net disposal proceeds and the
carrying amount of the asset are recognised in profit
or loss when the asset is derecognised.
3.12 Impairment of tangible and intangible assets
other than goodwill
At the end of each reporting period, the Group reviews
the carrying amounts of its tangible and intangible
assets to determine whether there is any indication
that those assets have suffered an impairment loss.
If any such indication exists, the recoverable amount of
the asset is estimated in order to determine the extent
5858
of the impairment loss (if any). When it is not possible
to estimate the recoverable amount of an individual
asset, the Group estimates the recoverable amount of
the cash-generating unit to which the asset belongs.
When a reasonable and consistent basis of allocation
can be identified, corporate assets are also allocated
to individual cash-generating units, or otherwise they
are allocated to the smallest group of cash-generating
units for which a reasonable and consistent allocation
basis can be identified.
Intangible assets with indefinite useful lives and
intangible assets not yet available for use are tested
for impairment at least annually, and whenever there
is an indication that the asset may be impaired.
Recoverable amount is the higher of fair values less
costs to sell and value in use. In assessing value in
use, the estimated future cash flows are discounted to
their present value using a pre-tax discount rate that
reflects current market assessments of the time value
of money and the risks specific to the asset for which
the estimates of future cash flows have not been
adjusted.
If the recoverable amount of an asset (or cash-
generating unit) is estimated to be less than its
carrying amount, the carrying amount of the
asset (or cash-generating unit) is reduced to its
recoverable amount. An impairment loss is recognised
immediately in profit or loss, unless the relevant asset
is carried at a revalued amount, in which case the
impairment loss is treated as a revaluation decrease.
When an impairment loss subsequently reverses, the
carrying amount of the asset (or cash-generating unit)
is increased to the revised estimate of its recoverable
amount, but so that the increased carrying amount
does not exceed the carrying amount that would
have been determined had no impairment loss been
recognised for the asset (or cash-generating unit)
in prior years. A reversal of an impairment loss is
recognised immediately in profit or loss, unless the
relevant asset is carried at a revalued amount, in
which case the reversal of the impairment loss is
treated as a revaluation increase.
Cynata Therapeutics Annual Report 2022/2023 3.13 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 the Group will
be required to settle the obligation, and a reliable
estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best
estimate of the consideration required to settle the
present obligation at the end of the reporting period,
taking into account the risks and uncertainties
surrounding the obligation. When a provision is
measured using the cash flows estimated to settle the
present obligation, its carrying amount is the present
value of those cash flows (where the effect of the time
value of money is material).
When some or all of the economic benefits required to
settle a provision are expected to be recovered from a
third party, a receivable is recognised as an asset if it
is virtually certain that reimbursement will be received
and the amount of the receivable can be measured
reliably.
3.14 Financial instruments
Recognition, initial measurement and derecognition
Financial assets and financial liabilities are recognised
when the Group becomes a party to the contractual
provisions of the financial instrument. Financial
instruments (except for trade receivables) are
measured initially at fair value adjusted by transaction
costs, except for those carried at ‘fair value through
profit or loss’, in which case transaction costs are
expensed to profit or loss. Where available, quoted
prices in an active market are used to determine the
fair value. In other circumstances, valuation techniques
are adopted. Subsequent measurement of financial
assets and financial liabilities are described below.
Trade receivables are initially measured at the
transaction price if the receivables do not contain a
significant financing component in accordance with
AASB 15.
Financial assets are derecognised when the
contractual rights to the cash flows from the
financial asset expire, or when the financial asset
and all substantial risks and rewards are transferred.
A financial liability is derecognised when it is
extinguished, discharged, cancelled or expired.
Classification and measurement
FINANCIAL ASSETS
Except for those trade receivables that do not contain
a significant financing component and are measured
at the transaction price in accordance with AASB 15,
all financial assets are initially measured at fair value
adjusted for transaction costs (where applicable).
For the purpose of subsequent measurement, financial
assets other than those designated and effective as
hedging instruments are classified into the following
categories upon initial recognition:
z
z
z
amortised cost;
fair value through other comprehensive income
(FVOCI); and
fair value through profit or loss (FVPL).
Classifications are determined by both:
z
z
the contractual cash flow characteristics of the
financial assets; and
the Group’s business model for managing the
financial asset.
Financial assets at amortised cost
Financial assets are measured at amortised cost if the
assets meet with the following conditions (and are not
designated as FVPL):
z
z
they are held within a business model whose
objective is to hold the financial assets and
collect its contractual cash flows; and
the contractual terms of the financial assets give
rise to cash flows that are solely payments of
principal and interest on the principal amount
outstanding.
After initial recognition, these are measured at
amortised cost using the effective interest method.
Discounting is omitted where the effect of discounting
is immaterial. The Group’s cash and cash equivalents,
Notes
59
59
Significant accounting policies (cont’d)
trade and most other receivables fall into this category
of financial instruments.
designated as hedging instruments in an effective
hedge, as appropriate.
Financial assets at fair value through other
comprehensive income (Equity instruments)
The Group measures debt instruments at fair value
through OCI if both of the following conditions are met:
z
z
the contractual terms of the financial asset give
rise on specified dates to cash flows that are
solely payments of principal and interest on the
principal amount outstanding; and
the financial asset is held within a business
model with the objective of both holding to collect
contractual cash flows and selling the financial
asset.
For debt instruments at fair value through OCI, interest
income, foreign exchange revaluation and impairment
losses or reversals are recognised in the statement of
profit or loss and computed in the same manner as
for financial assets measured at amortised cost. The
remaining fair value changes are recognised in OCI.
Upon initial recognition, the Group can elect to
classify irrevocably its equity investments as equity
instruments designated at fair value through OCI
when they meet the definition of equity under AASB
132 Financial Instruments: Presentation and are not
held for trading.
Financial assets at fair value through profit or loss
(FVPL)
Financial assets at fair value through profit or loss
include financial assets held for trading, financial
assets designated upon initial recognition at fair value
through profit or loss or financial assets mandatorily
required to be measured at fair value. Financial assets
are classified as held for trading if they are acquired
for the purpose of selling or repurchasing in the near
term.
FINANCIAL LIABILITIES
Financial liabilities are classified, at initial recognition,
as financial liabilities at fair value through profit or
loss, loans and borrowings, payables or as derivatives
Financial liabilities are initially measured at fair value,
and, where applicable, adjusted for transaction costs
unless the Group designated a financial liability at fair
value through profit or loss.
Subsequently, financial liabilities are measured at
amortised cost using the effective interest method
except for derivatives and financial liabilities
designated at FVPL, which are carried subsequently
at fair value with gains or losses recognised in profit
or loss.
All interest-related charges and, if applicable, gains
and losses arising on changes in fair value are
recognised in profit or loss.
IMPAIRMENT
The Group assesses on a forward-looking basis
the expected credit loss associated with its debt
instruments carried at amortised cost and FVOCI. The
impairment methodology applied depends on whether
there has been a significant increase in credit risk. For
trade receivables, the Group applies the simplified
approach permitted by AASB 9, which requires
expected lifetime losses to be recognised from initial
recognition of the receivables.
3.15 Goods and services tax
Revenues, expenses and assets are recognised net of
the amount of goods and services tax (GST), except:
i. where the amount of GST incurred is not
recoverable from the taxation authority, it is
recognised as part of the cost of acquisition of an
asset or as part of an item of expense; or
ii.
for receivables and payables which are
recognised inclusive of GST.
The net amount of GST recoverable from, or payable
to, the taxation authority is included as part of
receivables or payables.
Cash flows are included in the cash flow statement
on a gross basis. The GST component of cash flows
6060
Cynata Therapeutics Annual Report 2022/2023 arising from investing and financing activities which is
recoverable from, or payable to, the taxation authority
is classified within operating cash flows.
3.16 Leases
The Group as a lessee
At inception of a contract, the Group assesses if the
contract contains characteristics of or is a lease. If
there is a lease present, a right-of-use asset and a
corresponding liability are recognised by the Group
where the Group is a lessee. However, all contracts
that are classified as short-term leases (i.e., leases
with a remaining lease term of 12 months or less)
and leases of low-value assets are recognised as an
operating expense on a straight-line basis over the
term of the lease.
Initially, the lease liability is measured at the present
value of the lease payments still to be paid at the
commencement date. The lease payments are
discounted at the interest rate implicit in the lease. If
this rate cannot be readily determined, the Group uses
incremental borrowing rate.
Lease payments included in the measurement of the
lease liability are as follows:
z
z
z
z
z
z
fixed lease payments less any lease incentives;
variable lease payments that depend on the
index of the rate, initially measured using the
index or rate at the commencement date;
the amount expected to be payable by the lessee
under residual value guarantees;
the exercise price of purchase options if the
lessee if reasonably certain to exercise the
options;
lease payments under extension profits, if the
lessee is reasonably certain to exercise the
options; and
payments of penalties for terminating the lease,
if the lease term reflects the exercise of options to
terminate the lease.
The right-of-use assets comprise the initial
measurement of the corresponding lease liability, any
lease payments made at or before the commencement
date and initial direct costs. The subsequent
measurement of the right-of-use asset is at cost less
accumulated depreciation and impairment losses.
Right-of-use assets are depreciated over the lease
term or useful life of the underlying asset, whichever is
the shortest.
Where a lease transfers ownership of the underlying
asset or the costs of the right-of-use asset reflects
that the Group anticipates exercising a purchase
option, the specific asset is depreciated over the useful
life of the underlying asset.
The Group does not currently have any leases that
would require recognition of a right-of-use asset in the
current reporting period.
3.17 Cash and cash equivalents
For the purpose of presentation in the consolidated
statement of cash flows, cash and cash equivalents
includes cash on hand, deposits at call with financial
institutions with maturities of four months or less that
are readily convertible to known amount of cash and
which are subject to an insignificant risk of changes in
value. Bank overdrafts are shown within borrowings
in current liabilities in the consolidated statement of
financial position.
3.18 Comparative amounts
When current period balances have been classified
differently within current period disclosures when
compared to prior periods, comparative disclosures
have been restated to ensure consistency of
presentation between periods.
Notes
61
61
4.1.2 Share-based payment transactions
The Group accounts for all equity-settled share-
based payments based on the fair value of the
award on grant date. Under the fair value-based
method, compensation cost attributable to options
granted is measured at fair value at the grant date
and amortised over the vesting period. The amount
recognised as an expense is adjusted to reflect any
changes in the Group’s estimate of the options that
will eventually vest and the effect of any non-market
vesting conditions.
Share-based payment arrangements in which the
Group receives good or services as consideration
are measured at the fair value of the good or service
received, unless that fair value cannot be reliably
estimated.
5. Segment information
The Group operates in one business segment, namely
the development and commercialisation of therapeutic
products. AASB 8 Operating Segments states that
similar operating segments can be aggregated to
form one reportable segment. However, none of
the operating segments currently meet any of the
prescribed quantitative thresholds, and as such
do not have to be reported separately. The Group
has therefore decided to aggregate all its reporting
segments into one reportable operating segment.
The revenue and results of this segment are those
of the Group as a whole and are set out in the
consolidated statement of profit or loss and other
comprehensive income. The segment assets and
liabilities are those of the Group and set out in the
consolidated statement of financial position.
4. Critical accounting judgements
and key sources of estimation
uncertainty
In the application of the Group’s accounting policies,
which are described in note 3, the directors of the
Company are required to make judgements, estimates
and assumptions about the carrying amounts of
assets and liabilities that are not readily apparent
from other sources. The estimates and associated
assumptions are based on historical experience and
other factors that are considered to be relevant.
Actual results may differ from these estimates.
The estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period on which the
estimate is revised if the revision affects only that
period, or in the period of the revision and future
periods if the revision affects both current and future
periods.
4.1 Key sources of estimation uncertainty
4.1.1 Recoverability of intangible assets acquired in
a business combination
During the year, the directors reconsidered the
recoverability of the Group’s intangible assets arising
from the acquisition of Cynata Incorporated, which
is included in the consolidated statement of financial
position at 30 June 2023 with a carrying value of
$2,132,600 (2022: $2,412,565) after accounting for
amortisation.
The directors have allocated the carrying value of
the patents (before amortisation) to the different
categories of the research based on their estimates.
The resulting allocation has given rise to an
amortisation expense of $279,965 for the year ended
30 June 2023 (2022: $279,965).
The directors performed an assessment of impairment
indicators and concluded that no impairment of the
intangible assets is required for the year (2022: nil).
6262
Cynata Therapeutics Annual Report 2022/2023 6. Interest income and other income
Interest income
Interest income
Accrued interest on directors’ loans (refer to note 14)
Other income
R&D rebate
Other income (i)
2023
$
352,869
-
352,869
2023
$
2022
$
62,603
2,146
64,749
2022
$
1,654,310
832,677
-
6,937,748
1,654,310
7,770,425
(i) This represented an amount of US$5 million from Fujifilm Corporation under a Strategic Partnership Agreement.
7. Loss for the year
Loss for the year has been arrived at after charging the following items of expenses:
Employee benefits expenses
Wages and salaries
Superannuation expenses
Leave entitlements
Total employee benefits expenses (i)
Share-based payment expenses
Other expenses
Share register fees
Director fees
Legal costs
Investor/public relations
Corporate advisors
Other administrative expenses
Effect of foreign exchange
Total other expenses
(i) Excludes amounts charged to product development costs.
2023
$
2022
$
1,534,609
1,737,569
142,278
(23,742)
148,630
34,510
1,653,145
1,920,709
326,546
1,032,104
50,585
330,458
405,489
56,368
180,000
865,726
33,631
275,000
437,858
65,966
201,500
766,417
(257,843)
(557,698)
1,630,783
1,222,674
Notes
63
63
8. Income taxes relating to continuing operations
8.1
Income tax recognised in profit or loss
2023
2022
Current tax
Deferred tax
The income tax expense for the year can be reconciled
to the accounting loss as follows:
Loss before tax from continuing operations
Income tax expense calculated at 25% (2022: 25%)
Tax effect of R&D rebate received
$
-
-
-
$
-
-
-
2023
2022
$
$
(14,277,495)
(5,445,172)
(3,569,374)
(1,361,293)
(413,578)
(208,169)
Effect of expenses that are not deductible in determining taxable income
3,062,437
2,462,108
Effect of unused tax losses not recognised as deferred tax assets
920,515
(892,646)
-
-
The tax rate used for the 2023 reconciliations above is
the corporate tax rate of 25% (2022: 25%) payable by
Australian corporate entities on taxable profits under
Australian tax law.
8.2
Income tax recognised directly in equity
2023
2022
Current tax
Share issue costs
Deferred tax
Arising on transactions with owners:
Share issue costs deductible over 5 years
8.3 Unrecognised deferred tax assets in relation to:
Unused tax losses (revenue) for which no deferred tax assets
have been recognised (i)
Other
6464
$
-
-
-
$
-
-
-
2023
$
2022
$
8,791,271
6,470,884
195,494
251,866
8,986,765
6,722,750
Cynata Therapeutics Annual Report 2022/2023 8.4 Unrecognised deferred tax (liabilities) in relation to:
Intangibles
Other
2023
$
(533,150)
(102,195)
(635,345)
2022
$
(603,141)
(63,260)
(666,401)
Net deferred tax assets
8,351,420
6,056,349
(i)
All unused tax losses were incurred by Australian
entities. The figure also includes unused carried
forward tax losses of Cynata Australia Pty Ltd (“Cynata
Australia”). Cynata Australia is the wholly owned
subsidiary of Cynata Inc and Cynata Inc is the wholly
owned subsidiary of Cynata Therapeutics Limited.
This benefit for tax losses will only be obtained if
the specific entity carrying forward the tax losses
derives future assessable income of a nature and
of an amount sufficient to enable the benefit from
the deductions for the losses to be realised, and the
Company complies with the conditions for deductibility
imposed by tax legislation.
9. Loss per share
Basic and diluted loss per share (cents per share)
9.1 Basic and diluted loss per share
The loss and weighted average number of ordinary
shares used in the calculation of basic earnings per
share are as follows:
2023
2022
¢ / share
¢ / share
(9.84)
(3.80)
2023
$
2022
$
Loss for the year attributable to owners of the Company
(14,277,495)
(5,445,172)
Weighted average number of ordinary shares for the purposes
of basic and diluted loss per share
2023
$
2022
$
145,092,417
143,276,594
Notes
65
65
10. Trade and other receivables
Deposits made
Other receivables
At the reporting date, none of the receivables were
past due/impaired. There are no expected credit
losses.
11. Intangibles
Carrying value at beginning of year (i)
Amortisation (ii)
Net book value of research and development at end of year
2023
$
25,528
341,554
367,082
2022
$
25,528
74,861
100,389
2023
$
2022
$
2,412,565
2,692,530
(279,965)
(279,965)
2,132,600
2,412,565
(i) The carrying value at beginning of year represents
(ii) An amortisation expense of $279,965 has been
the fair value attributable to interests in research and
development of stem cells is due to, and in recognition
of, the successful development activities and data
generated by Cynata Incorporated as at the acquisition
date (1 December 2013), representing progress
toward the eventual commercialisation of the relevant
technology less accumulated amortisation.
recognised in profit or loss (2022: $279,965). Refer
to note 3.12 for more information on the Group’s
accounting policy on intangibles and amortisation.
Cost
Balance at 1 July
Additions
Disposals
Balance at 30 June
Accumulated amortisation
Balance at 1 July
Amortisation expense
Balance at 30 June
6666
2023
$
2022
$
4,821,799
4,821,799
-
-
-
-
4,821,799
4,821,799
2023
$
2022
$
2,409,234
2,129,269
279,965
279,965
2,689,199
2,409,234
Cynata Therapeutics Annual Report 2022/2023 12. Trade and other payables
Trade payables
Accrued expenses
13. Provisions
Provisions for employee entitlements
14. Loans receivable
Balance at beginning of year (i)
Interest accrued (ii)
Repayments by related parties (iii)
Balance at end of year
2023
$
2022
$
1,308,643
1,580,478
758,748
746,890
2,067,391
2,327,368
2023
$
2022
$
192,894
260,576
2023
$
-
-
-
-
2022
$
207,978
2,146
(210,124)
-
(i) At the General Meeting of shareholders held on
12 September 2018, shareholders of Cynata approved
the financial assistance and financial benefit provided
to Dr Ross Macdonald and Dr Stewart Washer or their
nominees as constituted by the making of a director loan
of $900,000 each to Dr Ross Macdonald and Dr Stewart
Washer solely for the purpose of funding the exercise
of 2,500,000 unlisted options each at $0.40 having an
expiry date of 27 September 2018. Each director paid
$100,000 in cash on exercise of the options. The loans
provided were full recourse loans and unsecured.
(ii) The director loans carried a simple interest rate of 5.20%
per annum and had a 3-year term. Interest was paid
annually and accrued daily.
(iii) During the financial year ended 30 June 2022,
Dr Macdonald made final repayment of $210,124 (2021:
$126,413) of his loan which included $10,124 accrued
interest. All director loans were repaid.
Notes
67
67
15. Issued capital
179,631,786 fully paid ordinary shares (2022: 143,276,594)
81,624,596
74,900,251
2023
$
2022
$
Fully paid ordinary shares
No.
$
No.
$
Balance at beginning of year
143,276,594
74,900,251
143,276,594
74,900,251
30 June 2023
30 June 2022
Share placement (i)
Share placement (ii)
Share purchase plan (iii)
Issue of shares (iv)
Share issue costs
13,508,877
2,904,409
9,302,325
2,000,000
12,903,296
2,000,011
640,694
137,749
-
(317,824)
-
-
-
-
-
-
-
-
-
-
Balance at end of the year
179,631,786
81,624,596
143,276,594
74,900,251
(i)
(ii)
Issue of shares pursuant to a Placement at $0.215 per
share on 17 April 2023.
(iii) Issue of shares pursuant to a Share Purchase Plan at
$0.155 per share on 11 May 2023.
Issue of shares pursuant to a Placement at $0.215 per
share on 24 April 2023.
(iv) Issue of Director shares pursuant to a participation of
Directors in a share placement at $0.215 per share on
31 May 2023.
6868
Cynata Therapeutics Annual Report 2022/2023 16. Reserves
16.1 Share-based payments
Balance at beginning of year
Recognition of share-based payments (i)
Balance at end of year
2023
$
2022
$
7,351,421
6,319,317
326,546
1,032,104
7,677,967
7,351,421
(i) Total expenses arising from share-based payment
transactions as a result of vesting and cancellation of
unlisted options to executives and employees recognised
during the year ended 30 June 2023 was $326,546
(2022: $1,032,104).
Further information about share-based payments is
set out in note 18.
16.2 Foreign currency translation reserve
Balance at beginning of year
Exchange differences arising on translating the foreign operations
Balance at end of year
Exchange differences relating to the translation
of results and net assets of the Group’s foreign
operations from their functional currencies to the
Group’s presentation currency (i.e., Australian dollars)
are recognised directly in other comprehensive income
and accumulated in the foreign currency translation
reserve.
2023
$
4,724
-
4,724
2022
$
4,724
-
4,724
17. Financial instruments
17.1 Capital management
The Group’s objective when managing capital is to
safeguard its ability to continue as a going concern so
that it can continue to provide returns for shareholders
and benefits to other stakeholders and to maintain an
optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the
Group may adjust the amount of dividends paid, return
capital to shareholders, issue new shares or sell assets
to reduce debt.
Given the nature of the business, the Group monitors
capital on the basis of current business operations and
cash flow requirements. There were no changes in the
Group’s approach to capital management during the
year.
Notes
69
69
Financial instruments (cont’d)
17.2 Categories of financial instruments
Financial assets
Cash and cash equivalents
Trade and other receivables
Financial liabilities
Trade and other payables
2023
2022
$
$
$
$
16,167,356
23,798,046
367,082
100,389
16,534,438
23,898,435
2,067,391
2,327,368
2,067,391
2,327,368
Net financial assets
14,467,047
21,571,067
The fair value of the above financial instruments
approximates their carrying values.
17.3 Financial risk management objectives
In common with all other businesses, the Group is
exposed to risks that arise from its use of financial
instruments. This note describes the Group’s
objectives, policies and processes for managing those
risks and the methods used to measure them. Further
quantitative information in respect of those risks is
presented throughout these financial statements.
processes put in place and the appropriateness of the
objectives and policies it sets. The overall objective of
the board is to set policies that seek to reduce risk as
far as possible without unduly affecting the Group’s
competitiveness and flexibility.
17.4 Market risk
There have been no substantive changes in the
Group’s exposure to financial instrument risks, its
objectives, policies and processes for managing those
risks or the methods used to measure them from
previous periods unless otherwise stated in this note.
Market risk for the Group arises from the use of
interest-bearing financial instruments. It is the risk
that the fair value or future cash flows of a financial
instrument will fluctuate because of changes in
interest rate (see 17.5 below).
The board has overall responsibility for the
determination of the Group’s risk management
objectives and policies and, whilst retaining ultimate
responsibility for them, it has delegated the authority
for designing and operating processes that ensure
the effective implementation of the objectives and
policies to the Group’s finance function. The Group’s
risk management policies and objectives are therefore
designed to minimise the potential impacts of these
risks on the Group where such impacts may be
material. The board receives monthly financial reports
through which it reviews the effectiveness of the
17.5 Interest rate risk management
Interest rate risk arises on cash and cash equivalents
and receivables from related parties. The Group does
not enter into any derivative instruments to mitigate
this risk. As this is not considered a significant risk for
the Group, no policies are in place to formally mitigate
this risk.
Interest rate sensitivity analysis
The sensitivity analyses below have been determined
based on the exposure to interest rates for both
7070
Cynata Therapeutics Annual Report 2022/2023 derivatives and non-derivative instruments at the end
on the reporting period.
If interest rates had been 100 basis points higher/
lower and all other variables were held constant, the
Group’s loss for the year ended 30 June 2023 would
(decrease)/increase by $161,674 (2022: $237,980)
17.6 Foreign currency risk management
The Group undertakes transactions denominated
in foreign currencies; consequently, exposures to
exchange rate fluctuations arise. At 30 June 2023,
the Company had cash denominated in US dollars
(US$2,054,236 (2022: US$6,305,303)). The A$
equivalent at 30 June 2023 is $3,086,797 (2022:
$9,166,204). A 5% movement in foreign exchange
rates would increase or (decrease) the Group’s
loss before tax by approximately $154,340 (2022:
$458,310). Exchange rate exposures are managed
within approved policy parameters utilising forward
foreign exchange contracts. As at 30 June 2023,
the Group has not entered in any forward foreign
exchange contracts.
17.7 Credit risk management
Credit risk refers to the risk that a counterparty will
default on its contractual obligations resulting in
financial loss to the Group. The Group has adopted
a policy of dealing with creditworthy counterparties
and obtaining sufficient collateral, where appropriate,
as a means of mitigating the risk of financial loss
from defaults. The Group only transacts with
entities that are rated the equivalent of investment
grade and above. This information is supplied by
independent rating agencies where available and, if
not available, the Group uses other publicly available
financial information and its own trading records
to rate its major customers. The Group’s exposure
and the credit ratings of its counterparties are
continuously monitored and the aggregate value of
transactions concluded is spread amongst approved
counterparties.
The credit risk on liquid funds is limited because the
counterparties are banks with high credit-ratings
assigned by international credit-rating agencies.
17.8 Liquidity risk management
Ultimate responsibility for liquidity risk management
rests with the board of directors, which has
established an appropriate liquidity risk management
framework for the management of the Group’s
short-, medium- and long-term funding and liquidity
management requirements. The Group manages
liquidity by maintaining adequate banking facilities,
by continuously monitoring forecast and actual
cash flows, and by matching the maturity profiles of
financial assets and liabilities.
Contractual cash flows
Carrying
Amount
Less than 1
month
1-3
months
3-12
months
1 year to 5
years
$
$
2023
Trade and other payables
2,067,391
2,067,391
2022
Trade and other payables
2,327,368
2,327,368
$
-
-
$
-
-
$
-
-
Total
contractual
cash flows
$
2,067,391
2,327,368
Notes
71
71
18. Share-based payments
18.1 Employee Option Acquisition Plan
Options may be issued to external consultants or non-
related parties without shareholders’ approval, where
the annual 15% capacity pursuant to ASX Listing Rule
7.1 has not been exceeded. Options cannot be offered
to a director or an associate of a director except where
approval is given by shareholders at a general meeting.
Each option converts into one ordinary share of Cynata
Therapeutics Limited on exercise. The options carry
neither right to dividends nor voting rights. Options may
be exercised at any time from the date of vesting to the
date of their expiry.
The following share-based payment arrangements
were in existence at balance date (30 June 2023):
Option series
Number
Grant date
fair value Exercise price
Expiry date
Vesting date
Grant date
CYPOPT12
CYPOPT14
CYPOPT15
CYPOPT16
CYPOPT17
CYPOPT18
300,000i
17 May 2019
1,100,000ii
19 Aug 2020
100,000iii
14 Sept 2020
4,500,000iv
24 Nov 2020
1,000,000v
11 Oct 2021
300,000vi
22 Nov 2022
CYPOA
18,177,637vii
1 Jun 2023
CYPOPT19
2,300,000viii
30 Jun 2023
i
This represents unlisted options issued to Dr Brooke
pursuant to the terms of his appointment as non-
executive director.
ii This represents unlisted options issued to Dr Kelly
(1,000,000), Dr Lipe (100,000), Dr Atley (50,000) and
Mr Thraves (100,000) pursuant to an Employee Option
Acquisition Plan. Dr Lipe resigned on 3 Jan 2023 and Dr
Atley resigned on 4 Nov 2022 and as a result, 150,000
options were cancelled during the year ended 30 June
2023.
iii This represents unlisted options issued to Mrs Gupta
pursuant to an Employee Option Acquisition Plan. Mrs
Gupta is an employee of Cynata Therapeutics Ltd.
iv This represents unlisted options issued to Dr Brooke
(2,000,000), Dr Macdonald (1,500,000), Dr Washer
(300,000), Dr Wotton (300,000), Dr Maher (300,000) and
Mr Webse (100,000) pursuant to an Employee Option
Acquisition Plan.
v This represents unlisted options issued to Dr Airey
pursuant to an Employee Option Acquisition Plan. Dr
Airey was appointed as Chief Medical Officer of the
Company on 11 October 2021.
$0.384
$0.415
$0.388
$0.493
$0.156
$0.135
n/a
n/a
$2.110
16 May 2024
$0.970
18 Aug 2024
$1.280
13 Sept 2024
$0.970
29 Nov 2025
$0.89
11 Oct 2025
$0.51
23 Nov 2027
$0.30
1 Apr 2025
$0.176
30 Jun 2028
Vested
Various
Various
Various
Various
Various
Vested
Various
vi This represents unlisted options issued to Ms Rolfe
pursuant to the terms of her appointment as non-
executive director. Ms Rolfe was appointed on 1
September 2022.
vii This represents free attaching listed options issued
pursuant to a Placement and a Share Purchase Plan
during the year ended 30 June 2023.
viii This represents unlisted options issued to Dr Kelly
(2,000,000) pursuant to the terms of his appointment
as Managing Director & CEO following the retirement of
Dr Macdonald and to a nominee of Dr Atkins (300,000)
pursuant to his appointment as non-executive director.
Dr Kelly and Dr Atkins were appointed on 1 July 2023.
Dr Kelly was previously the Chief Operating Officer of
Cynata.
There has been no alteration to the terms and
conditions of the above options arrangements since
the grant date.
7272
Cynata Therapeutics Annual Report 2022/2023
18.2 Fair value of share options
Options were priced using the Black-Scholes pricing
model. Expected volatility is based on the historical
share price volatility over the past 12 months from
grant date.
Where relevant, the fair value of the options has been
adjusted based on management’s best estimate for
the effects of non-transferability of the options.
The weighted average exercise price of options
granted during the year is $0.289 (2022: $0.89).
The inputs to the Black-Scholes pricing model were as
follows:
Inputs
Number of options
Grant date
Grant date fair value
Exercise price
Expected volatility
Implied option life (years)
Expected dividend yield
Risk-free rate
CYPOPT18
300,000
22 Nov 2022
$0.135
$0.51
54%
5.0
n/a
3.42%
18.3 Movements in share options during the year
The following reconciles the share options outstanding
at the beginning and end of the year:
2023
Weighted
average
exercise price
$
1.011
0.289
0.97
-
-
0.471
0.481
Number of
options
No.
7,150,000
20,777,637
(150,000)
-
-
27,777,637
24,283,094
2022
Weighted
average
exercise price
$
1.167
0.890
-
-
1.750
1.011
1.064
Number of
options
No.
7,575,000
1,000,000
-
-
(1,425,000)
7,150,000
3,676,332
Balance at beginning of the year
Granted during the year
Forfeited during the year
Exercised during the year
Expired during the year
Balance at end of year
Exercisable at end of year
18.4 Share options exercised during the year
18.5 Share options outstanding at the end of the year
No share options were exercised during the year
(2022: nil).
Share options outstanding at the end of the year
had a weighted average exercise price of $0.471
(2022: $1.011) and a weighted average remaining
contractual life of 783 days (2022: 1,130 days).
Notes
73
73
19. Key management personnel
The aggregate compensation made to directors and
other members of key management personnel of the
Group is set out below:
Short-term employee benefits
Post-employment benefits
Share-based payments
2023
$
2022
$
1,413,699
1,494,159
104,694
385,608
105,635
981,810
1,904,001
2,581,604
Short-term employee benefits
Share-based payments
These amounts include fees paid to non-executive
directors, accrued bonuses, salary and paid leave
benefits awarded to executive directors and key
management personnel and fees paid to entities
controlled by the directors.
Post-employment benefits
These amounts are superannuation contributions
made during the year.
These amounts represent the expense related to the
participation of key management personnel in equity
-settled benefit schemes as measured by the fair value
of the options granted on grant date.
Further information in relation to key management
personnel remuneration can be found in the
remuneration report contained in the directors’ report.
20. Related party transactions
20.1 Entities under the control of the Group
20.2 Key management personnel
The Group consists of the parent entity, Cynata
Therapeutics Limited and its wholly-owned Ireland-
based subsidiary Cynata Therapeutics Ireland Limited
and US-based subsidiary Cynata Incorporated, which
in turns controls 100% of Cynata Australia Pty Ltd, the
non-operating entity of Cynata Incorporated.
Balances and transactions between the parent entity
and its subsidiaries, which are related parties of the
entity, have been eliminated on consolidation and are
not disclosed in this note.
Any person(s) having authority and responsibility for
planning, directing and controlling the activities of
the entity, directly or indirectly, including any director
(whether executive or otherwise) of that entity, are
considered key management personnel.
For details of disclosures relating to key management
personnel, refer to the remuneration report contained
in the directors’ report, note 18 and note 19.
Transactions with related parties are on normal
commercial terms and conditions no more favourable
than those available to other parties unless otherwise
stated.
7474
Cynata Therapeutics Annual Report 2022/2023 21. Cash and cash equivalents
Cash and cash equivalents at the end of the reporting
period as shown in the consolidated statement of
cash flows can be reconciled to the related items in
the consolidated statement of financial position as
follows:
Cash and bank balances
21.1 Reconciliation of loss for the year to net cash flows
from operating activities
Cash flow from operating activities
Loss for the year
Adjustments for:
Share-based payments
Amortisation expenses
Accrued income
Effects of exchange rate changes
Movements in working capital
Decrease/(increase) in trade and other receivables and prepayments
Increase in trade and other payables
Increase in annual leave provisions
2023
$
2022
$
16,167,356
23,798,046
2023
$
2022
$
(14,277,495)
(5,445,172)
326,546
279,965
-
1,032,104
279,965
(2,146)
72,306
(169,583)
(356,392)
(259,977)
(67,682)
20,307
951,683
34,511
Net cash outflows from operating activities
(14,282,729)
(3,298,331)
22. Contingent liabilities and contingent assets
The directors are not aware of any significant
contingencies at balance date other than a
requirement for the payment of royalties pursuant to
certain license agreements should future revenues
exceed predetermined thresholds.
Notes
75
75
23. Commitments for expenditure
The Group has entered into a number of agreements
related to research and development activities. As at
30 June 2023, under these agreements, the Company
is committed to making payments over future periods,
as follows:
During the period 1 July 2023 – 30 June 2024
During the period 1 July 2024 – 30 June 2025
During the period 1 July 2025 – 30 June 2026
$
4,744,918
2,111,230
1,096,268
Where commitments are denominated in foreign currencies, the amounts have been converted to Australian
dollars based on exchange rates prevailing as at 30 June 2023.
24. Remuneration of auditors
Auditor of the Group
Audit and review of the financial statements
The auditor of the Group is Stantons.
2023
$
51,162
2022
$
48,814
7676
Cynata Therapeutics Annual Report 2022/2023 25. Parent entity information
The accounting policies of the parent entity, which
have been applied in determining the financial
information shown below, are the same as those
applied in the consolidated financial statements.
Refer to note 3 for a summary of significant
accounting policies relating to the Group.
Financial position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Provisions
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
Financial performance
Loss for the year
Commitments and contingencies
There were no material commitments or contingencies
at the reporting date for the parent company except
for those mentioned in note 22 and note 23 above.
2023
$
2022
$
16,861,165
24,135,462
4,890,653
4,890,653
21,751,818
29,026,115
2,067,391
2,327,368
192,894
260,576
2,260,285
2,587,944
19,491,533
26,438,171
81,624,596
74,900,251
7,677,967
7,351,421
(69,811,030)
(55,813,501)
19,491,533
26,438,171
(13,997,529)
(5,165,209)
Notes
77
77
26. Subsidiaries
Details of the Company’s subsidiaries at the end of the
reporting period are as follows:
Name of subsidiary
Principal activity
Place of
incorporation
Cynata Incorporated
Holds licenses with WARF for core IPs
USA
Proportion of
ownership interest and
voting power held by
the Group
2023
100%
2022
100%
Cynata Therapeutics Ireland
Legal representative of Cynata in the
Limited
European Economic Area
Cynata Australia Pty Ltd (i)
Non-operating subsidiary from date of
reconstruction
Ireland
100%
100%
Australia
100%
100%
(i) Cynata Australia Pty Ltd is a wholly owned subsidiary of Cynata Incorporated.
27. Events after the reporting period
As announced on 30 June 2023, Dr Kilian Kelly was
appointed to the position of Chief Executive Officer
and Managing Director, effective 1 July 2023, following
the retirement of Dr Ross Macdonald. Dr Kelly had
been Cynata’s Chief Operating Officer since May
2019 and has been instrumental in advancing the
Company’s clinical pipeline since joining Cynata as
Vice President, Product Development in 2014.
Also on 30 June 2023, the Company announced
the appointment of Dr David Atkins to the Board
of Directors, effective 1 July 2023. Dr Atkins is the
28. Approval of financial statements
The financial statements were approved by the board
of directors and authorised for issue on 28 August
2023.
Managing Partner of BioScience Managers, an
international healthcare investment firm and a major
Cynata shareholder. Dr Stewart Washer stepped
down from his position as a non-executive director on
the same date.
Other than the above, there has not been any matter
or circumstance occurring subsequent to the end of
the financial year that has significantly affected, or
may significantly affect, the operations of the Group,
the results of those operations, or state of affairs of
the Group in future financial years.
7878
Cynata Therapeutics Annual Report 2022/2023 Notes
79
79
ASX Additional Information
As at 4 August 2023
Substantial Shareholders
The names of the substantial shareholders disclosed
to the Company in substantial shareholder notices are:
Name
Phillip Asset Management Ltd atf BioScience Managers Translation Fund I
FIL Investment Management (Hong Kong) Limited
Distribution of Ordinary Shares
Shares Held
Issued Capital
No.
23,58,040
9,506,625
%
13.13
10.00
Holders
Ordinary Shares
Issued Capital
No.
675
1,048
446
930
218
No.
383,047
2,886,932
3,524,473
32,765,311
140,072,023
3,317
179,631,786
%
0.21
1.61
1.96
18.24
77.98
100.00
Category
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
8080
Cynata Therapeutics Annual Report 2022/2023 Distribution of Listed Options
Category
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Holders
Listed Options
Issued Capital
No.
2
24
33
114
11
184
No.
3
75,600
259,842
6,157,567
11,684,625
18,177,637
%
0.00
0.42
1.43
33.87
64.28
100.00
Voting Rights
(a) at meetings of members each member entitled to
vote may vote in person or by proxy or attorney;
(b) on a show of hands each person present who is a
member has one vote, and on a poll each person
present in person or by proxy or by attorney has
one vote for each ordinary share held; and
(c) no voting rights attached to listed and unlisted
options.
Number of Holders of Unlisted
Options
300,000 unlisted Options exercisable at $2.11 and
expiring 16/05/2024 held by 1 holder, Dr Geoffrey
Brooke.
1,100,000 unlisted employee share option acquisition
plan Options exercisable at $0.97 and expiring on
18/08/2024 held by 2 holders.
100,000 unlisted employee share option acquisition
plan Options exercisable at $1.28 and expiring on
13/09/2024 held by 1 holder.
4,500,000 unlisted Options exercisable at $0.97 and
expiring 29/11/2025 held by 6 holders. Holders holding
more than 20% being 2,000,000 held in the name of
Dr Geoffrey Brooke (44.4%) and 1,500,000 held in the
name of Dr Ross Macdonald (33.33%).
1,000,000 unlisted employee share option acquisition
plan Options exercisable at $0.89 Options and
expiring 11/10/2025 held by 1 holder.
300,000 unlisted Options exercisable at $0.51 and
expiring 23/11/2027 held by 1 holder, Ms Janine Rolfe.
2,300,000 unlisted Options exercisable at $0.176 and
expiring on 30/06/2028, 2,000,000 held in the name of
Dr Kilian Kelly (87%) and one other holder.
Restricted Securities
There are no ASX restricted securities on issue.
On-Market Buy-Back
There is no current on-market buy back.
Unmarketable Parcels
The number of shareholders holding less than a
marketable parcel is 1,395.
ASX Additional Information
81
81
ASX Additional Information (cont’d)
20 Largest Shareholders
Name
Shares Held
Issued Capital
Phillip Asset Management Limited
HSBC Custody Nominees (Australia) Limited
Citicorp Nominees Pty Limited
Fujifilm Corporation
BNP Paribas Nominees Pty Ltd
BNP Paribas Nominees Pty Ltd ACF Clearstream
National Nominees Limited
HSBC Custody Nominees (Australia) Limited-GSCO ECA
Dr Ross Alexander Macdonald
BNP Paribas Noms Pty Ltd
Mal Washer Nominees Pty Ltd
Mr Pawel Rej & Mrs Miroslawa Rej
Crosswind Trustee Company Limited
Mr David Charles Prodrick
Mr Patrick Anthony Walsh
Mr Jon Nicolai Bjarnason & Mrs Rina Eghoje Bjarnason
Dr Maksym Vodyanyk
Helium Management Pty Ltd
Mr Craig Lawrence Darby
LFT Co 2018 Pty Ltd
No.
23,588,040
17,172,745
8,692,216
8,088,403
4,248,421
2,730,212
2,500,000
2,012,007
2,000,000
1,702,710
1,559,534
1,543,036
1,500,000
1,500,000
1,341,790
1,200,000
1,191,658
1,135,366
1,110,066
1,080,000
%
13.13
9.56
4.84
4.50
2.37
1.52
1.39
1.12
1.11
0.95
0.87
0.86
0.84
0.84
0.75
0.67
0.66
0.63
0.62
0.60
85,896,204
47.83
8282
Cynata Therapeutics Annual Report 2022/2023 20 Largest Listed Option Holders
Name
Options Held
Issued Capital
Phillip Asset Management Limited
Merrill Lynch (Australia) Nominees Pty Limited
Citicorp Nominees Pty Limited
HSBC Custody Nominees (Australia) Limited
BNP Paribas Nominees Pty Ltd ACF Clearstream
HSBC Custody Nominees (Australia) Limited A/C 2
Scintilla Strategic Investments Limited
Mr Andrew Tate
BNP Paribas Nominees Pty Ltd
LRF 2018 Pty Ltd
HSBC Custody Nominees (Australia) Limited-GSCO ECA
Mr Jeffrey John Hunt
Mr Pawel Rej & Mrs Miroslawa Rej
Mr Thanh Hiep Nguyen
Dr Michael Peter Moore & Mrs Hawwa Moore
Mr Simon Hannes & Mrs Mignon Catherine Booth
Waring Super Pty Ltd
Superhero Securities Limited
Mr Chin Teck Siow
Mrs Kristin Eileen Franco
No.
4,651,163
3,488,372
1,028,366
710,549
456,102
418,604
250,000
250,000
163,769
133,980
133,720
94,483
94,483
94,483
94,483
94,483
94,483
94,483
94,483
94,483
%
25.59
19.19
5.66
3.91
2.51
2.30
1.38
1.38
0.90
0.74
0.74
0.52
0.52
0.52
0.52
0.52
0.52
0.52
0.52
0.52
12,534,972
68.98
ASX Additional Information
83
83
8484
Cynata Therapeutics Annual Report 2022/2023 Website
www.cynata.com
Registered and
Principal Office
Level 3, 100 Cubitt Street
Cremorne, Victoria 3121
AUSTRALIA
Tel: +61 3 7067 6940
Email: info@cynata.com