Dimerix Limited and controlled entity
Corporate Directory
30 June 2021
2
Corporate directory
Board of Directors
• Dr James Williams
Chairman
• Dr Sonia Poli
Non-Executive Director
• Mr Hugh Alsop
Non-Executive Director
• Dr Nina Webster
CEO and Managing Director
Company Secretary
Mr Hamish George
Auditors
Stantons International
Level 2, 1 Walker Avenue
West Perth
Western Australia 6005
Registered and Principal Office
425 Smith St
Fitzroy, Victoria 3065
Tel:
1300 813 321
Postal Address
425 Smith St
Fitzroy, Victoria 3065
Tel:
1300 813 321
Website
Website: www.dimerix.com
Share Registry
Automic Registry Services
Suite 1a, Level 1
7 Ventnor Avenue
West Perth
Western Australia 6005
Tel:
+61 8 9324 2099
Stock Exchange
Australian Securities Exchange
Level 4, North Tower Rialto
525 Collins Street
Melbourne VIC 3000
ASX Code
DXB
“It has been a very exciting and rewarding year, with
our Phase 2 studies in FSGS and diabetic kidney
disease providing robust data to progress into a
global Phase 3 study that may provide a much-
needed therapeutic option for patients with FSGS.
The outcomes from our DMX-200 studies have
supported inclusion into two COVID programs and I
am pleased to be in a position support the global
effort in treating the effects of this disease.”
Dr Robert Shepherd
Research & Development Director
3
Dimerix annual report for the year ended
30 June 2021
Contents
Financial outcomes ............................................................................................................. 4
2021 business achievements and 2022 planned milestones ............................................... 5
Our Values .......................................................................................................................... 6
Chairman’s letter ................................................................................................................ 6
CEO & Managing Director’s report ...................................................................................... 7
Directors’ report ................................................................................................................. 9
Operating and financial review ......................................................................................... 13
Remuneration report (audited) ........................................................................................ 26
Auditor’s independence declaration ................................................................................. 32
Independent auditor’s report ........................................................................................... 33
Directors’ declaration ....................................................................................................... 37
Consolidated statement of profit or loss and other comprehensive income for the financial
year ended 30 June 2021 .................................................................................................. 38
Consolidated statement of financial position as at 30 June 2021 ...................................... 39
Consolidated statement of changes in equity for the financial year ended 30 June 2021 . 40
Consolidated statement of cash flows for the financial year ended 30 June 2021 ............ 41
Notes to the consolidated financial statements ................................................................ 42
ASX Additional Information as at 6th August 2021 ............................................................ 67
Currently advancing multiple
near-term Phase 3 clinical
studies in inflammatory diseases
Dimerix is a biopharmaceutical
company developing innovative
new therapies in areas with
unmet medical needs
Dimerix Limited and controlled entity
Financial outcomes
30 June 2021
4
Financial outcomes
Cash Reserve we had at
June 2021
$5.3 million
Amount we invested in our product
portfolio in FY2021
$9.3 million
The number of Phase 2 clinical studies
completed in the financial year
2
The number of Phase 3 stage
opportunities in the pipeline
3
R&D investment
costs
increased
Corporate/
Administration
costs steady
Dimerix Limited and controlled entity
2021 Business Achievements & 2022 Planned Milestones
30 June 2021
5
2021 business achievements and 2022 planned milestones
✓ DMX-200 demonstrates favourable clinical efficacy and strong safety profile
across multiple Phase 2 renal clinical studies
✓ Orphan Drug Designation/accelerated approval pathway granted by US FDA,
EU EMA and UK MHRA for FSGS
✓ Advice from the FDA, EMA and MHRA on FSGS Phase 3 study design and
appropriate endpoints for marketing approval all closely aligned
✓ Two independent Phase 3 clinical studies underway in patients with COVID-19
respiratory complications
✓ DMX-200 manufacturing process optimised to improve commercial scalability
and global logistics
Next steps
❑ Global FSGS Phase 3 clinical study initiation
❑ REMAP-CAP Phase 3 study in intensive care COVID-19 patients conclusion
❑ CLARITY 2.0 Phase 3 study in hospitalised COVID-19 patients conclusion
❑ DMX-700 pre-clinical study initiation
❑ DMX-200 in diabetic kidney disease longer term study initiation
“I’m pleased to say that significant progress
has been made in establishing the
commercial
DMX-200
Drug
Product,
including supply for the Phase 3 COVID-19
studies. I am excited to now deliver on the
manufacture of clinical supply for the
upcoming FSGS Phase 3 clinical study.”
Bronwyn Pollock
Product Development Director
Dimerix Limited and controlled entity
Chairman’s’ Letter
30 June 2021
6
Chairman’s letter
Dr James Williams
Non-Executive Chairman
Dear Shareholders,
Dimerix’ purpose is to develop and commercialise
much needed products for global markets which will, in turn, deliver attractive returns to shareholders. Our
commitment drives us to embrace innovation and excellence in everything we do, valuing our positive
contribution to patients’ lives by bringing important, quality medicines to people who need them.
In 2020, the COVID-19 pandemic only enhanced this goal. I am proud of the role we have played, along with
many others in the pharmaceutical industry, in coming together to help develop potential products,
particularly for those with underlying health conditions, to manage the disease.
Throughout this challenging financial year, we have continued to deliver on our lead renal program with
DMX-200, whilst carefully managing our cash position. The strategy our CEO, Dr Nina Webster, and the Board
set in 2018 is delivering results, and I am delighted with the progress we have made since she joined. Despite
the unprecedented pandemic, Dimerix concluded two Phase 2 studies in 2020, entered three Phase 3 stage
opportunities, one in our core renal indication of Focal Segmental Glomerulosclerosis (FSGS), and two in
treating symptoms of COVID-19 infections that have been funded by external Government and Non-
Government organisations. In addition, our pipeline continues to expand as we invest in R&D to drive future
growth.
Following the very encouraging results from our two Phase 2 studies in 2020, Dimerix has since met with key
regulatory agencies to discuss the FSGS Phase 3 clinical study design. The closely aligned advice from those
agencies provides confidence in the study design and the endpoints for marketing approval. I am very pleased
to report Dimerix anticipates initiation of the Phase 3 study very shortly.
Our people and culture are vital to our success, and we continue to focus on the importance of a diverse and
motivated team. I would like to thank Nina and her team for their continued hard work and dedication, our
Board, as well as our customers, suppliers, shareholders and other stakeholders as we look forward to
continued success in the coming year.
Yours sincerely,
Dr James Williams
Non-Executive Chairman
Our Values
Dimerix adopts, as part of its core culture,
values to which we all aspire aimed at driving
the success of the business.
•
Respect
•
Honesty
•
Commitment
•
Reliability
By adopting the company values, Dimerix
employees will ensure that they are delivering
the best possible outcomes to themselves, their
fellow workmates, investors, and business
associates alike. It is expected that everyone
will, every day, in every way, strive to meet
these values as they go about their day to day
activities.
Dimerix Limited and controlled entity
CEO & Managing Director’s Report
30 June 2021
7
CEO & Managing Director’s report
2020 was a unique year in the history of Dimerix, as the COVID-19 pandemic challenged us to deliver on our
strategic goals despite immense challenges to healthcare systems and society. We are now extremely pleased
to be entering a new chapter in the Dimerix story, as we progress to the final stages of development.
Operating in challenging times
When the impact of the pandemic began to be felt around the world, we reacted quickly, taking early
measures not only to safeguard our employees and patients, but also to ensure continuity of our
development programs. Our employees have predominantly worked from home and, like many of you, have
juggled work and life in the midst of Melbourne’s multiple lockdowns. Yet the team has demonstrated a
resilience I am extremely proud of and have consistently delivered against all of our near-term strategic
priorities that we believe will enable us to achieve our corporate objective.
Maintaining strategic focus
Whilst we pivoted into two global Phase 3 clinical studies in an effort to develop a product that may help in
the treatment of COVID-19 patients, we also remained focused on our renal program portfolio, continuing to
deliver on two Phase 2 programs in 2020, and prepare for initiation of the Phase 3 study in patients with focal
segmental glomerulosclerosis (FSGS) in 2021.
In addition to the two renal clinical studies that completed in 2020, we made significant progress in the
broader development plans, including patent strategy, commercial manufacturing supply, interaction with
regulatory agencies in US and Europe, quality oversight, analytical development and establishment of shelf-
life for our lead product. In June 2021, Dimerix received consistent advice from the US Food and Drug
Administration (FDA), the European Medicines Agency (EMA) and the UK Medicines and Healthcare products
Regulatory Agency (MHRA) on the design of the FSGS Phase 3 study. The closely aligned advice from all three
agencies provides confidence in the study design and appropriate endpoints for marketing approval.
Importantly, the agencies also confirmed that the proposed non-clinical, or safety, package and specifications
for the drug manufactured by Dimerix are appropriate for market registration of DMX-200. As such, Dimerix
is preparing to initiate its Phase 3 FSGS study at clinical sites globally.
Strengthening the portfolio
The 2021 financial year has been extremely busy delivering on DMX-200 in multiple different indications, as
well as diversifying risk through broadening and strengthening our product portfolio and thereby providing
an exceptional and exciting platform for growth in the coming years.
“We faced a year of challenges and opportunities
in 2020. I am enormously proud of how adaptive
and resilient our employees were in the face of a
global pandemic and am grateful for their
unwavering commitment to deliver on strategy
and further strengthen the pipeline.
I would like to thank every one of our employees
for their hard work during this challenging time”
Dr Nina Webster
CEO & Managing Director
Dr Nina Webster
CEO & Managing Director
Dimerix Limited and controlled entity
CEO & Managing Director’s Report
30 June 2021
8
The renal program provided compelling and consistent data in two Phase 2 studies, and we continue to assess
the next study design for diabetic kidney disease whilst preparing to initiate the Phase 3 study in FSGS. DMX-
200 in COVID-19 patients with respiratory complications is under investigation by two investigator-led
groups, REMAP-CAP and CLARITY 2.0. The second study, CLARITY 2.0, was added to the pipeline in December
2020 and targets patients at an earlier stage of respiratory complications relative to the REMAP-CAP study,
which is in ICU patients. Importantly, if DMX-200 does show benefit in patients with COVID-19, it may also
show benefit in respiratory complications associated with other infections, such as pneumonia and influenza.
It is important to note that both the REMAP-CAP and CLARITY 2.0 studies are externally funded, with Dimerix
lending support by providing DMX-200 and regulatory support. In addition, DMX-700 for chronic obstructive
pulmonary disease (COPD) has provided further encouraging in-vitro data and has progressed towards pre-
clinical development.
Near-term strategic opportunities
Dimerix has continued to make solid progress against all of our near-term strategic priorities that we believe
will enable us to achieve our corporate objective. In addition to those longer term propositions of diabetic
kidney disease and COPD, Dimerix has three clear near-term opportunities. Firstly, the Phase 3 study in
patients with FSGS is planned to begin, with initiation of the first sites planned for August 2021, following
ethics submissions. The REMAP-CAP study is actively recruiting patients across Europe, and based on current
recruitment rates, we anticipate the study will recruit the final patients in Q4 2021, with the primary endpoint
reporting shortly thereafter. As at writing, the CLARITY 2.0 program is awaiting final Indian regulatory sign
off, having completed ethics approvals and site initiation, and we remain optimistic of also completing
recruitment for that study in 2021.
Positioned well for the future
I am pleased to report that Dimerix finished the year in a very healthy cash position. Whilst increasing R&D
spend significantly year on year, our overheads have remained steady, and the Company finished the year
under budget. As always, cost management remains a key priority for the business, with the cost base being
carefully managed to ensure delivery of a sustainable business beyond the current milestones. The company
has evolved significantly over the past couple of years, with multiple near term assets in commercially
attractive and growing markets that all have a high unmet need, and each with a potential fast pathway to
market. I am excited about the opportunities ahead for each of our product opportunities.
I am profoundly aware of the potential impact Dimerix may have in improving the lives of millions of people
around the world with both respiratory and renal conditions. I would like to thank all of our stakeholders,
including employees, Directors, partners and shareholders, who collectively enable us to put better health
within reach, every day.
Many of us entered 2021 believing the worst of the pandemic was behind us. However, in mid-2021, the
world still remains in the grip of COVID-19, with many of us separated from our loved ones. That said, I
strongly believe we have reasons to be optimistic. The pandemic has demonstrated enormous courage and
resilience, and it is fantastic to see the pharmaceutical industry collectively rise to the occasion. I wish you all
well and I look forward to reporting on our progress throughout the 2021 financial year.
Dr Nina Webster
CEO & Managing Director
Dimerix Limited and controlled entity
Directors’ Report
30 June 2021
9
Directors’ report
The directors of Dimerix Limited (“Dimerix” or “the Company”) submit herewith the financial report of the
Company and its subsidiary (“Group” or “Consolidated Entity”) for the financial year ended 30 June 2021. In
order to comply with the provisions of the Corporations Act 2001, the directors report as follows:
Information about the directors
The names and particulars of the directors of the Group during or since the end of the financial year are:
Dr James Williams
PhD, MBA
Non-executive Chairman, joined the Board on listing in July 2015 and was the
CEO of unlisted Dimerix Bioscience Pty Ltd between 2007 and 2009. James is
a Founder and Investment Director of Yuuwa Capital LP, a venture capital firm
based in Western Australia and a Director of Yuuwa investee companies
PolyActiva Pty Ltd and alternate director of Adalta Limited (ASX:1AD). He is
also a Director of the Perron Institute for Neurological and Translational
Science, a member of the “Panel of Experts” for the University of Western
Australia’s Pathfinder Fund and a member of the Federal Government’s
Entrepreneur Program Committee.
Dr Nina Webster
PhD, M IP Law,
MBA
Executive CEO and Managing Director, joined the Board on 27th August 2018.
Nina has extensive experience in the pharmaceutical industry, with
leadership roles across strategy, commercialisation, intellectual property,
scientific and operational aspects of product development. Nina was formerly
the Commercial Director for Acrux Limited (ASX: ACR), developing and
commercialising 3 products globally. Nina has previously worked within
Immuron Limited (ASX: IMC), and large Pharma, Wyeth Pharmaceuticals (UK)
Dr Sonia Poli
PhD
Non-Executive Director, joined the Board in July 2015. Sonia is an
accomplished R&D professional with 20 years international experience
in large and small pharmaceutical companies. Sonia has served as Chief
Scientific Officer at Minoryx and Addex Therapeutics. Sonia was formerly
Executive Manager at AC Immune, a Nasdaq listed company, and has
previously worked within Swiss Stock Exchange listed companies Hoffman
la Roche and Addex Therapeutics.
Mr Hugh Alsop
BSc(Hons), MBA
Non-executive director, joined the Board on 1 May 2017. Hugh is an
accomplished and commercially focused executive with experience in
international business development, partnering, drug development and
leadership of scientific teams. Hugh is currently CEO of Kinoxis Therapeutics.
Prior to Kinoxis, Hugh was CEO of venture-backed private company
Hatchtech, and Director of Business Development at Acrux Limited
(ASX:ACR), where he was responsible for several drug development programs
for the international markets. Hugh is also a non-Executive Director of private
companies Servatus Ltd and Eflare Corporation Pty Ltd.
The above‐named directors held office during the whole of the financial year and since the end of the
financial year.
Dimerix Limited and controlled entity
Directors’ Report
30 June 2021
10
Directors shareholdings
The following table sets out each director’s relevant interest in shares, debentures and 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 Number
Share options
Number
Performance
shares Number
James Williams
2,252,355
-
-
Sonia Poli
130,000
-
-
Hugh Alsop
-
-
-
Nina Webster
45,000
6,351,975
-
During the year, Nina Webster transferred 6,351,975 options to Jaclani Pty Ltd of which she is the beneficiary.
Share options granted to directors and senior management
No options were granted to directors and senior management during and since the end of the financial year.
Company secretary
Hamish George BCom, CA, GIA(Cert)
Mr George is a chartered accountant and has experience in providing financial
advice and CFO services to businesses ranging from small start-ups to large
established businesses with turnover of over $50 million. Hamish is a director
at Bio101 Financial Advisory Pty Ltd, a financial services firm providing
outsourced CFO, tax and company secretarial solutions to the life science
sector. Hamish holds a Bachelor of Commerce from the University of
Melbourne, a Diploma in Financial Planning from Kaplan Professional, a
Masters Degree in Professional Accounting from RMIT and a Certificate in
Governance Practice from the Governance Institute of Australia.
Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Unissued shares under option /performance shares
Details of unissued shares or interests under option as at the date of this report are:
Issuing entity
Number of shares
under option
Class of
shares
Exercise price of
option
Expiry date of
options
Dimerix Limited
2,117,325
Ordinary
0.180
30/10/2023
Dimerix Limited
2,117,325
Ordinary
0.270
30/10/2023
Dimerix Limited
2,117,325
Ordinary
0.360
30/10/2023
Dimerix Limited
375,000
Ordinary
0.180
31/01/2024
Dimerix Limited
375,000
Ordinary
0.270
31/01/2024
Dimerix Limited
1,750,000
Ordinary
0.180
09/08/2022
Dimerix Limited and controlled entity
Directors’ Report
30 June 2021
11
The holders of these options and performance shares do not have the right to participate in any share issue
or interest issue of the Company or of any other body corporate or registered scheme.
2,765,515 options lapsed during the year or since the end of the financial year.
250,000 options were exercised during the year or since the end of the financial year.
Indemnity and insurance of officers and auditors
During the financial year, the Group paid a premium in respect of a contract insuring the directors of the
Group (as named above), the company secretary and all executive officers of the Group and of any related
body corporate against a liability incurred as a director, secretary or executive officer to the extent
permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure of the nature of the
liability and the amount of the premium.
The Group has not otherwise, during or since the end of the financial year, except to the extent permitted
by law, indemnified or agreed to indemnify an officer or auditor of the Group or of any related body
corporate against a liability incurred as such an officer or auditor.
Meetings of directors
The number of meetings of the Company's Board of Directors ('the Board') held during the year ended 30
June 2021, and the number of meetings attended by each director were:
Board of Directors
Attended
Held
Dr James Williams
14
14
Dr Sonia Poli
14
14
Mr Hugh Alsop
13
14
Dr Nina Webster
14
14
Held: represents the number of meetings held during the time the director held office.
Proceedings on behalf of the Group
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring
proceedings on behalf of the Group, or to intervene in any proceedings to which the Group is a party for
the purpose of taking responsibility on behalf of the Group for all or part of those proceedings.
Non-audit services
In the event non-audit services are provided by the auditor, the Board has established procedures to ensure
that the provision of non-audit services is compatible with the general standard of independence for
auditors imposed by the Corporations Act 2001. These include:
●
all non-audit services are reviewed and approved to ensure that they do not impact the integrity and
objectivity of the auditor; and
●
non-audit services do not undermine the general principles relating to auditor independence as
set out in APES 110 ‘Code of Ethics for Professional Accountants’ issued by the Accounting
Professional & Ethical Standards Board, including reviewing or auditing the auditor’s own work, acting
in a management or decision-making capacity for the Company, acting as advocate for the Company
or jointly sharing economic risks and rewards.
12
Dimerix Limited and controlled entity
Directors’ Report
30 June 2021
Details of the amounts paid or payable to the auditor for non-audit services provided during the financial
year by the auditor are outlined in note 27 to the financial statements.
Auditor's independence declaration
A copy of the auditor's independence declaration as required under section 307C of the Corporations
Act 2001 is set out on page 32 of this report.
Dimerix Limited and controlled entity
Operating and financial review
30 June 2021
13
Operating and financial review
Principal activities
Dimerix is a biopharmaceutical company developing innovative new therapies in areas with unmet medical
needs. Dimerix pursues new product concepts and applies deep scientific knowledge to the discovery of
products from early stage development through to commercialisation. Dimerix products will target multiple
global territories.
Dimerix is developing four product indications: FSGS; respiratory complications associated with COVID-19;
diabetic kidney disease; and DMX-700 for COPD; as well as the proprietary Receptor-HIT assay technology.
Operating results
The loss for the Group for the year ended 30 June 2021 after providing for income tax amounted to
$6,371,734 (30 June 2020: $4,494,153).
The year ended 30 June 2021 operating results are attributed to the following:
•
Research and development expenditure of $9,332,356 (30 June 2020: $5,537,528);
•
Corporate and administration expenses of $1,559,841 (30 June 2020: $1,251,581); and
•
Share based payments expense of $35,969 (30 June 2020: $129,280)
Review of operations
Summary
Dimerix reported on two Phase 2 clinical trials during the period. DMX-200 for FSGS Phase 2a top line positive
results were announced on 29th July 2020 and DMX-200 for Diabetic Kidney Disease top line positive results
reported on 14th September 2020. In June 2021, Dimerix met with the EMA and the FDA to discuss the FSGS
Phase 3 clinical study design and appropriate endpoints for marketing approval. The closely aligned advice
from both the FDA and the EMA provides confidence in the study design and appropriate endpoints for
marketing approval. As such, Dimerix can now complete all remaining study start up tasks and begin initiation
of clinical sites in the global study following ethics submissions.
During the reporting period, Dimerix added a further opportunity to the development pipeline, DMX-200 in
patients with respiratory complications associated with COVID-19, which is an indication for patients with
earlier stage complications than the COVID-19 pneumonia/ARDS program. This addition is based on sound
scientific rationale and further understanding of the impact of COVID-19 on the lungs and the inflammatory
system. This further diversifies the risk of product failure, but also diversifies the sources of future revenue
streams.
A summary of key announcements during the year is as follows:
•
Last Patient Completes Dosing in DKD Phase 2 Clinical Study
•
Investor Presentation
•
Positive Top-Line Results in FSGS Phase 2a Clinical Study
•
Dimerix Awarded $1 Million MRFF Funding
Dimerix Limited and controlled entity
Operating and financial review
30 June 2021
14
•
Investor Presentation
•
Positive Top-Line Results in DKD Phase 2 Clinical Study
•
AGM Presentation
•
CEO's Address to Shareholders
•
DMX-700 Data Demonstrates Effect on Key COPD Receptors
•
Shareholder Update
•
Receipt of R&D Tax Incentive
•
Positive Additional Data to Support DMX-200 Development
•
ARDS in COVID-19 Patients Protocol Published
•
Second Study to Include DMX-200 in COVID-19 Patients
•
Investor Presentation
•
Dimerix Plans for Next Study in Diabetic Kidney Disease
•
CLARITY 2.0 Study Progresses In Patients With COVID-19
•
DMX-200 Competitive Position Further Enhanced
•
Clinical Study in Patients with COVID-19 Progresses
•
Investor Presentation
•
Major Shareholder Loan for $5 Million
•
COVID-19 Study Recruits Multiple Patients in Europe
•
Update of DMX-200 Study in COVID-19 Patients in India
•
Investor Presentation
•
DMX-200 Remains Eligible for Accelerated Approval
•
Dimerix Confirms Phase 3 FSGS Study Design With EMA
•
Dimerix Receives Innovation Passport and ILAP Designation
Key announcements immediately post period end:
•
FDA Confirms Phase 3 Study Design in FSGS Kidney Disease
•
COVID-19 Study Incorporating DMX-200 Opens More Sites in Europe and UK
Overview of Company strategy
Our goal is to develop patient-friendly products that treat unmet medical needs in important therapeutic
areas. We pursue new product concepts and provide strong scientific know-how in the development of
products from early stage development through to commercialisation. Our products will target multiple
global territories, with the initial focus predominantly on the United States and European markets.
Dimerix strives to develop products to help patients with un-met medical needs and our investment in
research and development includes the use of state-of-the-art technology and collaborating effectively with
our partners to help those patients most in need.
Dimerix has used our Receptor HIT technology to identify new treatments (DMX-200 and DMX-700) that may
transform the lives of patients with kidney and respiratory diseases. Kidney disease and respiratory disease
are major global health problems and are both underserved therapeutic areas. DMX-200 is currently in
development for renal indications Focal Segmental Glomerulosclerosis (FSGS) and Diabetic Kidney Disease,
and in patients with respiratory complications associated with COVID-19. DMX-700 is currently in
development for chronic Obstructive Pulmonary Disease (COPD).
Dimerix Limited and controlled entity
Operating and financial review
30 June 2021
15
Dimerix has secured orphan drug designation (or equivalent) for DMX-200 in FSGS in the US, Europe and the
UK. Current treatment options for FSGS are limited and have significant side effects, meaning there is a
desperate need for safe treatments. Through the orphan drug program, DMX-200 will have access to a
number of regulatory and financial incentives, potentially meaning shorter trials and lower costs compared
to other non-orphan therapies.
Dimerix is adopting a diversified investment approach, targeting a range of specialty innovative new chemical
entities (NCE’s) along with re-purposed candidates providing a balanced approach and a reduced risk when
compared with development of NCE’s alone. We do this by:
-
Developing and applying our proprietary Receptor-HIT technology across a broad range of therapeutic
classes, using existing drugs and new chemical entities.
-
Establishing early-stage collaborative agreements with innovator pharmaceutical companies and
institutes to enable rapid candidate evaluation and commercialisation of the technology.
-
Evaluating how use of the Dimerix’ Receptor-HIT platform might provide enhanced clinical benefit in the
management of diseases.
-
Evaluating other opportunities through mergers, licensing and acquisitions that build the Dimerix
pipeline.
-
Developing strong proprietary positions through patents to maintain and extend competitive
advantages for existing & new drugs.
-
Creating a diversified portfolio of marketed products to generate future income streams.
-
Building a solid product pipeline that has an attractive projected internal rate of return, with a
collectively lower risk profile and faster pathway to approval.
The DMX-200 Program
DMX-200 is a compound called repagermanium (an alternative crystal packing of propagermanium that is
identical in solution) that inhibits the cellular inflammation receptor C-C chemokine receptor type 2 (CCR2).
It is administered as a capsule twice daily to patients already on standard of care treatment (angiotensin
receptor blocker) and has been adapted to a nasogastric formulation for those who are on a ventilator and
cannot swallow. DMX-200 has never been approved by regulators in the USA, Europe or Australian. As such,
DMX-200 is considered a New Chemical Entity (NCE) in these jurisdictions. A related compound, known as
propagermanium, at a different dose and formulation, has previously been approved by the Japanese
regulatory agency for use in a different condition, providing DMX-200 with a known safety profile which can
therefore reduce development times and costs.
Following a DMX-200 Phase 2a trial that was completed in 2017, Dimerix entered into two Phase 2 clinical
trials: the first in Focal Segmental Glomerulosclerosis; and the second in Diabetic Kidney Disease.
The Phase 2a trial investigated the effects of DMX-200 in patients with FSGS, and met all of the primary and
secondary endpoints including safety and efficacy (proteinuria reduction); and
The second Phase 2 trial investigated the effects of DMX-200 in patients with diabetic kidney disease,
demonstrating encouraging and consistent results, with 30% of all participants falling below the threshold
for diabetic kidney disease diagnosis by the end of the study.
Dimerix Limited and controlled entity
Operating and financial review
30 June 2021
16
Overall, DMX-200 demonstrated clear and consistent benefit to patients with both FSGS and diabetic kidney
disease across both studies, and following these very encouraging results, Dimerix is preparing to initiate a
Phase 3 clinical study in FSGS patients.
IQVIA has been appointed the contract research organisation (CRO) to facilitate and coordinate the global
Phase 3 study in FSGS. IQVIA is the largest global CRO and has extensive and recent experience in running
late-stage global FSGS clinical studies.
Focal Segmental Glomerulosclerosis
Focal Segmental Glomerulosclerosis is a serious and rare disease that attacks the kidney’s filtering units
(glomeruli) causing irreversible scarring of the tissues, which leads to permanent kidney damage and
ultimately failure requiring dialysis or transplantation. FSGS is diagnosed by renal biopsy, where a physician
examines a tiny portion of the kidney tissue. Patients with FSGS typically present with swelling in parts of the
body, most noticeable around the eyes, hands and feet, and abdomen which causes sudden weight gain, high
blood pressure, high cholesterol, renal failure, and proteinuria, where large amounts of protein leak into the
urine. The severity of protein in the urine is predictive of the clinical outcome of patients suffering from this
disease. Currently, there are no approved treatment for FSGS, and off-label therapies for primary FSGS are
limited to corticosteroids and immunosuppressants that usually carry unwanted short and long term side
effects.
FSGS affects approximately 210,000 patients world-wide, and unfortunately, for those diagnosed with FSGS
the prognosis is not good. The average time from diagnosis to complete kidney failure is 5 years, and it affects
both adults and children as young as 2 years old. For those who are fortunate enough to receive a kidney
transplant, up to 40% will get reoccurring FSGS in the transplanted kidney. The cause is unknown, but it does
mean that these patients will ultimately end up on dialysis. At this time, there are no treatments approved
for the treatment of FSGS anywhere in the world, so the treatment options and prognosis are poor. Hence,
there remains a large gap in treatment for this progressive kidney disease.
Dimerix has received Orphan Drug Designation, or equivalent, for DMX-200 in the US, Europe and the UK for
the treatment of FSGS. Dimerix established with the respective regulatory agencies that “the intention to
treat FSGS with DMX-200 was justified based on preliminary non-clinical data which showed a reduction in
the number of podocytes lost and an improvement in proteinuria.” Furthermore, as stated by the respective
regulatory agencies, the orphan designation indicates that “Dimerix has provided sufficient justification that
if approved, [DMX-200] is likely to be of significant benefit to those affected by the condition” and that
“[DMX-200] would provide a clinically relevant advantage as an alternative to any currently marketed
products”. Orphan designation also provides regulatory and financial benefits to help bring DMX-200 to
market in the US and Europe faster, including reduced fees during the product development phase, protocol
assistance from the regulatory authorities, and 7-year (US) and 10-year (Europe) market exclusivity following
product approval.
DMX-200 in FSGS Phase 2a Study
The Phase 2a FSGS study was a double-blind, randomised, placebo-controlled, crossover study designed to
evaluate the safety and preliminary signs of efficacy of a 240 mg daily dose of DMX-200 in patients with FSGS
who were receiving a stable dose of the blood pressure medication irbesartan. Participants received 16
weeks DMX-200 and 16 weeks placebo, separated by a 6 week washout period. This means that every patient
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17
received treatment with DMX-200 and treatment of placebo, making it a powerful study design, although
neither the patients nor the physicians knew which treatment they received first. Every patient also received
a 300 mg daily dose of the angiotensin receptor blocker irbesartan for at least 12 weeks prior to screening
and throughout the study, so that any reduction in proteinuria seen in the study can be attributed to DMX-
200 and not the effect of changing their blood pressure medication.
ACTION for FSGS Study Design
The results were reported in the current period. Ten patients were enrolled in the study, of which seven
qualified for the final analysis. There were no patient withdrawals from the study despite a difficult COVID-
19 period.
Primary Endpoint:
The primary endpoint for the study was safety, as
measured by the number and severity of adverse
events with the use of DMX-200 compared to
placebo. The preliminary findings show DMX-200 was
generally safe and well-tolerated, with no major
variation in the incidence or severity of adverse
events between treatment with DMX-200 or placebo.
This is consistent with existing safety data on
DMX-200.
Secondary Endpoint:
Despite being a small cohort, it was extremely
pleasing to see that 6 of the 7 patients (86%)
demonstrated a reduction in proteinuria on treatment versus placebo. Two patients (29%) demonstrated a
>40% reduction in proteinuria compared to placebo. This consistent data is positive and does suggest that
DMX-200 may be beneficial to patients suffering from FSGS.
Furthermore, monocyte chemoattractant protein-1, or MCP-1, is a key protein responsible for inflammation
in damaged tissue, and lower levels of MCP-1 typically translate to less inflammation. The Phase 2 data in
FSGS patients clearly demonstrated support for the mechanism of action of DMX-200 where it was shown
that higher proteinuria correlates with higher inflammation, and that inflammation was reduced when on
DMX- 200 treatment versus placebo. This in turn supports the theory of reducing the inflammatory response
in the lungs in the two COVID studies.
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While this initial Phase 2a study in patients with FSGS was not powered for statistical significance, it was
designed to derive maximum insight from a small number of patients. As such, the study achieved
encouraging data to support the ongoing development of DMX-200 for FSGS into the planned Phase 3 study.
Diabetic Kidney Disease
There were 23 million diagnosed diabetics in the US in 2017, and the incidence of diabetes is estimated to
grow by 54% by the year 2040. It is estimated that approximately 40% of all diabetics suffer from kidney
disease leading to kidney failure and dialysis. There is no cure for diabetic kidney disease, and current
treatment options are ineffective as the kidneys deteriorate towards failure. The current treatment options
include medications to reduce high blood pressure or glucose content in the blood, dialysis or kidney
transplant. The progressive nature of kidney disease inevitably results in poor outlook for patients, as it most
often results in total kidney failure and a poor quality of life. Dialysis costs are in the region of $100,000 per
patient per year and consume about 12 hours per week in regular clinic visits. Alternatively, a kidney
transplant costs in the region of $260,000 per patient, with ongoing and expensive anti-rejection drugs also
costing thousands of dollars per year. These options are a huge burden on both the patient and the
healthcare system. DMX-200 has the potential to increase the life of the kidney, reducing the burden for both
the patient and the healthcare system.
DMX-200 in Diabetic Kidney Disease Phase 2 Study
Participants received 12 weeks DMX-200 and 12 weeks placebo, separated by a 6-week washout period,
during the double-blind, randomised, placebo-controlled, crossover study evaluating the safety and efficacy
of DMX-200 in patients with diabetic kidney disease who were receiving a stable dose of irbesartan.
Diabetic Kidney Disease Study Design
The results were also reported in the current period, and analysis showed 30% of all patients ended the study
below albuminuria threshold for diabetic kidney disease diagnosis (<30mg/mmol), although statistical
significance was not observed in the reduction in albuminuria on DMX-200 versus placebo.
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An exploratory subgroup analysis was conducted in patients during the second treatment period, where a
37% reduction in albuminuria in patients receiving DMX-200 versus placebo in those patients with a starting
albuminuria baseline greater than 500 mg/g (38% reduction versus baseline; n=26). A 22% mean reduction
in albuminuria was observed in patients on DMX-200 versus placebo (Figure 2) when normalised to first
baseline (27% reduction versus baseline; n=40).
Importantly, these reductions in albuminuria are in addition to any reduction that occurred on the
background therapy of an angiotensin receptor blocker.
At the end of the study, it was noted that albuminuria levels appeared to be continuing to trend downwards
at the end of both DMX-200 treatment periods, which also suggests greater albuminuria reductions may be
observed with a longer study treatment duration. This is consistent with effects seen in other late-stage
clinical
studies
including
in
Dapagliflozin
(doi:10.1111/dom.12654),
Canagliflozin
(doi:10.1681/ASN.2020050723) and Finerenone (doi:10.1056/NEJMoa2025845) and in the previous Dimerix
study of DMX-200 in patients with diabetic kidney disease completed in 2017.
The Medical Advisory Board concluded that these encouraging data support the ongoing development of
DMX-200 in diabetic kidney disease, and based on the Phase 2 data, a further study assessing the effect of
DMX-200 in diabetic kidney disease patients over a longer period is warranted.
Dimerix continues to support multiple patients from previous DMX-200 studies and both the Phase 2 FSGS
and the diabetic kidney disease studies who continue on treatment with DMX-200 through the Australian
Therapeutic Goods Administration Special Access Scheme following respective study completion.
Respiratory complications associated with COVID-19
The SARS-CoV2 coronavirus was declared as a global pandemic on 11th March 2020 and is the cause of
COVID-19 ('CO' stands for corona, 'VI' for virus, 'D' for disease and -19 for 2019). The COVID-19 virus was a
new virus in the same family of viruses as Severe Acute Respiratory Syndrome (SARS) and some types of
common cold. According to the World Health Organisation (WHO), almost 200 million COVID cases had been
reported during the period, resulting in over 4 million deaths.
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Even as vaccination rates increase, it is anticipated that a significant proportion of the population will still be
susceptible to COVID-19 because they are either resistant to the vaccine, cannot be vaccinated or choose not
to be vaccinated. Therefore, it is still likely that many patients will get infected and will end up with COVID
respiratory complications and potentially long-COVID (symptoms that extend long beyond recovery from the
virus). As such, there remains a great need for treatments for patients with COVID.
It is generally accepted that much of the disease burden of the virus is caused by the immune response to
COVID-19, often leading to respiratory complications due to a rapid, widespread inflammation of the lungs
that can lead to respiratory failure and death. In reports from laboratories studying the virus and physicians
treating COVID-19 patients, there is growing evidence that there are high concentrations of the Monocyte
Chemoattractant Protein 1 (MCP-1) in the lungs of patients with respiratory failure, and the resulting
movement of monocyte immune cells into the lung may be one of the factors accelerating the cytokine storm
that causes so much damage to the lung. The receptor for MCP-1 is CCR2 and further analysis in 2021
identified that CCR2 is a key marker of COVID-19 symptom severity.
DMX-200 blocks the CCR2 receptor and based on the known effects in the lung of COVID-19, there is a strong
scientific rationale that DMX-200, either alone or with an angiotensin receptor blocker, may have a unique
potential to reduce the recruitment of inflammatory cells to the lungs, thereby reducing COVID-19-related
lung damage, and this is supported by the growing number of publications on the chemokine-driven immune
response to the SARS-CoV2 virus. As a result, Dimerix’s DMX-200 drug candidate was selected for inclusion
in two different global studies: 1) the protocol of the REMAP-CAP aimed at treating patients with COVID-19
pneumonia; and 2) the protocol of CLARITY 2.0 aimed at treating COVID-19 patients with less severe
respiratory complications.
Dimerix proactively supports both studies driven by the REMAP-CAP and CLARITY 2.0 teams in providing them
information for the regulatory submissions and in supplying DMX-200 to the study sites. Importantly, if DMX-
200 does show benefit in patients with COVID-19, it may also show benefit in respiratory complications
associated with other infections, such as pneumonia and influenza. Thus, this provides an opportunity that
could extend well beyond the impact of COVID-19.
REMAP-CAP
REMAP-CAP is short for Randomised, Embedded, Multifactorial Adaptive Platform Trial for Community-
Acquired Pneumonia. It brings together a network of leading experts, institutions and research networks with
over 200 sites participating worldwide and is aimed at treating patients with ARDS as a result of COVID-19.
The REMAP-CAP program is endorsed by the World Health Organisation (WHO) and designated as a Pandemic
Special Study.
Under its Pandemic Special study designation the REMAP-CAP study has been tasked with helping answer
crucial questions during the COVID-19 pandemic. This designation ensures that knowledge translation of
clinical trial results can occur directly with policymakers and public health officials for rapid implementation
around the globe as required. It ensures that results generated from the study can be translated in an
efficient and transparent manner to benefit affected patients, providing a collaborative and fast pathway to
global clinical practice.
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REMAP-CAP (and the companion platform REMAP-COVID) is an international adaptive platform trial run by a
network of leading physicians, institutions, and research groups collaborating on a global level. The program
is recruiting patients with ARDS as a result of COVID-19 and who are hospitalised. It uses an innovative trial
design to efficiently evaluate multiple interventions simultaneously.
Dimerix continues to work with REMAP-CAP global investigator team, with multiple patients already
recruited into the feasibility/Phase 3 ACE2 renin angiotensin system (RAS) modulation study domain in
patients with COVID-19 pneumonia, which incorporates DMX-200. Subjects have been enrolled across over
40 clinical sites across the UK the Netherlands and Italy and are randomised to receive one RAS blockade
treatment arm or a control:
• ARB in combination with DMX-200
• Angiotensin receptor blocker (ARB)
• Angiotensin converting enzyme (ACE) inhibitor
• No RAS inhibitor (no placebo)
The overarching REMAP-CAP study incorporating DMX-200 is funded by the European Union through the
H2020 Project called “Rapid European COVID-19 Emergency Research response,” which uses the acronym
“RECOVER”. Further, Dimerix was awarded $1 million from MTPConnect’s Biomedical Translation Bridge
(BTB) program provided by the Australian Government’s Medical Research Future Fund, with support from
UniQuest to support Dimerix participation in this study.
The study domain protocol, which aims to recruit approximately 200 patients per treatment arm (~600
patients across all treatment arms), can be seen at https://www.remapcap.org/protocol-documents.
CLARITY 2.0
CLARITY 2.0 is an investigator initiated, prospective, multi-centre, randomised, double blind, placebo-
controlled study, commencing with 600 patients diagnosed with COVID-19. The primary endpoint is a 7-point
scale of clinical health at treatment day 14, adapted from the endpoint recommended by the WHO for COVID-
19 trials (scored from no hospitalisation or ventilation requirement through to death). Participants will be
treated for up to 28 days and then assessed for clinical outcomes for a total of 26 weeks.
The study is led by Professor Meg Jardine, Director of the NHMRC Clinical Trials Centre at The University of
Sydney, Australia, and conducted in collaboration with Professor Vivek Jha, Executive Director of The George
Institute for Global Health, India. As at writing, the CLARITY 2.0 program is awaiting final Indian regulatory
sign off, having completed ethics approvals and site initiation.
Dimerix recognises and appreciates the support and collaboration of sites and participants in India,
coordinated by The George Institute for Global Health, India. If DMX-200 in combination with an ARB is
proven effective for the treatment of COVID-19 and is approved for an indication within this setting, Dimerix
is committed to an upscale of opportunity for treatment, including a fair and ethical supply of DMX-200
within India in line with industry standards.
The DMX-700 Program
Chronic Obstructive Pulmonary Disease (COPD) is a progressive and life-threatening lung disease. The
primary cause of COPD is exposure to tobacco smoke (either active smoking or secondary smoke), however
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it is also caused by exposure to indoor and outdoor air pollution, occupational dusts and fumes and long-
term asthma. COPD is the third-leading cause of death in the world, and although treatments exist to improve
the symptoms of COPD, there is currently no way to slow progression of the condition or cure it. Moreover,
among the top five causes of death globally, this disease is the only one with increasing mortality rates. In
2020, approximately 10% of the adult population were reported to suffer from COPD, and it was estimated
that 3.23 million deaths were caused by the disease in 2019 (6% of all deaths globally in that year). The global
COPD treatment market was valued at US$14 billion in 2017 and is projected to increase at a compound
annual growth rate of 4.9% to 2026.
There is a significant unmet need in COPD, which is recognised by key organisations such as the National
Institute of Health (NIH) and globally by the World Health Organisation (WHO) and the Centers for Disease
Control and Prevention (CDC). In 2017, the NIH released the COPD National Action Plan in an effort to support
research, diagnosis and treatment of the disease. Following this recognition, in 2018 the FDA issued revised
guidance to help sponsors developing drugs to treat COPD. The new guidance will enable shorter clinical trials
using surrogate and patient-reported endpoints.
During the period, Dimerix announced additional in
vitro data to support further development of its
drug candidate DMX-700 to treat
chronic
obstructive pulmonary disease (COPD). The DMX-
700 drug candidate has been shown to block
Interleukin 8 receptor beta (IL-8Rβ, also known as
CXCR2) and angiotensin II receptor type 1 (AT1R)
that have been independently implicated in the
pathophysiology of COPD. Novel findings on
molecular pharmacology profiling, using a number
of techniques including using Receptor-HIT, has
demonstrated that the DMX-700 drug candidate
abolished receptor signalling involved in neutrophil
recruitment.
IL-8 is produced by epithelial cells, airway smooth muscle cells and endothelial cells, and in many chronic
inflammatory diseases including COPD, is expressed at elevated levels leading to abnormal recruitment of
neutrophils that cause damage to the lung tissue. Prior studies have shown that inhibiting signalling of IL-8Rβ
reduces neutrophil movement and subsequently reduces mucus production and inflammation in COPD.
The DMX-700 development plan continues to progress towards the clinical phase, with in vivo assessment in
an appropriate COPD model to confirm in vitro observations in relevant pre-clinical models of the disease.
The components of DMX-700 have a known safety profile in human studies, meaning an accelerated clinical
development path can be pursued once in vivo efficacy is demonstrated. As a G Protein-Coupled Receptor
(GPCR) targeting candidate, Dimerix can use its current core competencies and expertise in GPCRs to execute
on this opportunity.
Dimerix lodged a PCT patent application during the period, for the treatment, amelioration or prevention of
COPD with DMX-700. The PCT global patent application, number [PCT/AU2020/050987], has a filing date of
Figure 1: DMX-700 inhibits both the IL-8RE and AT1R
signal, as measured by ligand-induced BRET
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23
18 September 2020 and a priority date of 26 September 2019 and once granted would expire post 2040. The
DMX-700 drug candidate details remain undisclosed pending additional data and patent positioning.
Intellectual Property
Dimerix has multiple granted patents covering DMX-200 in numerous key territories, with additional patent
applications underway. The granted US patents cover the use of any CCR2 antagonist (e.g. DMX-200) in
patients receiving any angiotensin receptor blocker (e.g. irbesartan), for various indications including kidney
and respiratory diseases. As such, the granted patents cover more than just DMX-200, which strengthens the
company's competitive position and may be used to block some competitor product development plans. The
granted therapeutic use patents are set to expire in 2033, and new patent applications are expected to be
filed in due course.
Dimerix has secured ownership over what it believes is an important new drug discovery, including by lodging
two international PCT patent applications for the use of any CCR2 inhibitor in respiratory complications,
including for COVID-19 as well as other causes. The new PCT patent applications, titled “Treatment for Virus
Induced Acute Respiratory Distress Syndrome” or “Treatment for Acute Respiratory Distress Syndrome” were
filed in the US in May 2021, and if granted, would expire post 2041.
Dimerix has also lodged a PCT patent application for DMX-700. The new PCT patent application were filed in
September 2020 and, once granted, would expire post 2040. It is anticipated that DMX-700 will be protected
by Composition of Matter patents, Formulation patents and Method of Use patents, providing a strong
competitive position.
The current intellectual property strategy is aligned with the Dimerix business strategy and objectives.
Dimerix continuously monitors the competitive landscape to identify, assess and minimise any IP risks, and
to strengthen the Dimerix IP position.
Commercial Manufacturer
The development of Dimerix manufacturing capabilities has significantly progressed throughout the period.
Dimerix further developed the final formulation, which optimizes commercial production speeds, and
established the commercial manufacturing processes which will support global marketing authorisations
(including US FDA), commercialisation and partnering activities.
Commercial scale manufacture and product packaging are often components of the product development
process that can delay marketing authorisation, since stability testing of the final product must be completed
in real time. By developing robust manufacturing processes and conducting commercial scale batch
manufacture at this stage of development, and placing this on stability testing using validated methods,
Dimerix can ensure that the appropriate stability and shelf-life of the product is known at the time of
submitting the NDA, thus helping to avoid delays in the marketing authorisation process. The manufacturing
package is also likely to add value to any potential partner transaction.
Liquidity and capital resources
Dimerix ended the financial year with cash of $5,250,094, and expects to receive a Research and
Development tax incentive refund of $3,695,562 following 30 June 2021, further boosting capital resources.
Dimerix Limited and controlled entity
Operating and financial review
30 June 2021
24
Financial position
30 June 2021
30 June 2020
$
$
Cash and cash equivalents
5,250,094
7,785,706
Net assets / total equity
1,468,499
7,759,264
Contributed equity
28,389,114
28,344,114
Accumulated losses
(27,807,567)
(21,435,833)
The directors believe the Group is in a strong and stable financial position to expand and grow its current
operations.
Significant changes in state of affairs
There were no significant changes in the state of affairs in the year ended 30 June 2021.
Events after the reporting period
•
FDA Confirms Phase 3 Study Design in FSGS Kidney Disease.
On 19th July 2021, Dimerix announced that the US FDA met with Dimerix for a Type C (guidance) meeting
and formal minutes had been issued by the FDA. At the meeting, the FDA reviewed a dossier that included
the Dimerix Phase 3 DMX-200 clinical study design for Focal Segmental Glomerulosclerosis (FSGS) and
the previously reported positive Phase 2 clinical data. The FDA was supportive of the proposed Phase 3
study design, and confirmed that improvement in proteinuria was an acceptable surrogate endpoint for
accelerated approval, with sufficient demonstration of the relationship to kidney function. The closely
aligned advice from both the FDA and the EMA provides confidence in the study design and appropriate
endpoints for marketing approval.
•
COVID-19 Study Incorporating DMX-200 Opens More Sites in Europe and UK
In 2nd August, Dimerix advises that 167 patients had now been recruited into the feasibility/Phase 3 ACE2
renin angiotensin system (RAS) modulation study domain in patients with COVID-19 pneumonia, which
incorporates DMX-200. Of those 167 subjects enrolled across 43 clinical sites, 106 have been recruited
in sites across the UK, 60 in the Netherlands and 1 in Italy and represents an ~7-fold increase in the past
3-months. DMX-200 has regulatory approval in both the UK and the Netherlands, and is available at sites
for administration to patients randomised to the DMX-200 treatment arm.
Future developments, prospects and business strategies
Dimerix continues to progress its renal program, firstly in FSGS and thereafter, diabetic kidney disease. In
preparation for the FSGS global Phase 3 study initiation, IQVIA has been appointed as the lead Contract
Research Organisation (CRO). IQVIA is the largest global CRO and has extensive and recent experience in
running late-stage global FSGS clinical studies. Sites will be initiated country by country, following ethics
submissions, based on a number of factors including speed of regulatory submissions and reviews as well as
COVID 19 status.
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25
Dimerix proactively supports both studies driven by the REMAP-CAP and CLARITY 2.0 teams in providing them
information for the regulatory submissions and in supplying DMX-200 to the study sites. Dimerix looks
forward to reporting on progress and as key milestones are met. Further, the Company continues to progress
DMX-700 proof of concept activities.
Dimerix has continued to progress its commercial manufacturing capabilities through an FDA approved global
contract manufacturing organisation based in the US. The US FDA regulates the manufacturing and quality
of pharmaceuticals. The main regulatory standard for ensuring pharmaceutical quality is the Good
Manufacturing Practice (GMP) regulation for human pharmaceuticals. Patients expect that each batch of
medicines they take will meet quality standards so that they will be safe and effective.
Environmental issues
The Group’s operations are not subject to significant environmental regulation under the Australian
Commonwealth or State Law.
Dimerix Limited and controlled entity
Remuneration report
30 June 2021
26
Remuneration report (audited)
This remuneration, which forms part of the directors’ report, sets out information about the remuneration
of Dimerix Limited’s key management personnel for the financial year ended 30 June 2021. 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. The prescribed details for each person covered by this report are detailed below
under the following headings:
●
key management personnel
●
remuneration policy
●
relationship between the remuneration policy and Group performance
●
remuneration of key management personnel
●
key terms of employment contracts.
Key management personnel
The directors and other key management personnel of the Group during the financial year were:
Non-executive directors
Position
Dr James Williams
Non-executive Chairman
Dr Sonia Maria Poli
Non-executive Director
Mr Hugh Alsop
Non-executive Director
Executive Employees
Position
Dr Nina Webster
Chief Executive Officer/Managing Director
The named persons held their current position for the whole of the financial year and since the end of the
financial year.
Remuneration policy
The board of directors of the Group is currently responsible for determining and reviewing compensation
arrangements for key management personnel. The Group does not currently operate a Remuneration
Committee. The remuneration policy, which is set out below, is designed to promote superior performance
and long-term commitment to the Group.
Non-executive directors remuneration
Non-executive directors and Chairman are remunerated by way of fees, in the form of cash, non-cash
benefits, superannuation contributions or salary sacrifice into equity and do not normally participate in
schemes designed for the remuneration of executives.
Shareholders approval must be obtained in relation to the overall limit set for the non-executive directors’
fees. The maximum aggregate remuneration approved by shareholders for non-executive directors is
$500,000 per annum. The directors set the individual non-executive director fees within the limit approved
by shareholders. Non-executive directors are not provided with retirement benefits.
Dimerix Limited and controlled entity
Remuneration report
30 June 2021
27
Executive director remuneration
Executive directors receive a base remuneration which is at market rates, and may be entitled to
performance based remuneration, which is determined on an annual basis. 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 Group and shareholders to do so. Executive remuneration and other terms
of employment are reviewed annually by the board having regard to the performance, relevant comparative
information and expert advice.
The board’s remuneration policy reflects its obligation to align executive remuneration with shareholders’
interests and to retain appropriately qualified executive talent for the benefit of the Group. The main
principles are:
●
remuneration reflects the competitive market in which the Group operates;
●
individual remuneration should be linked to performance criteria if appropriate; and
●
executives should be rewarded for both financial and non-financial performance.
The total remuneration of executives consists of the following:
●
salary – executives receive a fixed sum payable monthly in cash plus superannuation at relevant
minimum statutory superannuation contribution;
●
cash at risk component – executives may participate in share and option schemes generally made in
accordance with thresholds set in plans approved by shareholders if deemed appropriate. However,
the board considers it appropriate to issue shares and options to executives outside of approved
schemes in exceptional circumstances;
●
other benefits – executives may, if deemed appropriate by the board, be provided with a fully
expensed mobile phone and other forms of remuneration; and
●
performance bonus.
The board has not formally engaged the services of a remuneration consultant to provide recommendations
when setting the remuneration received by directors or other key management personnel during the
financial year.
Relationship between the remuneration policy and Group performance
The board considers that at this time, evaluation of the Group’s financial performance using generally
accepted measures such as profitability, total shareholder return or per Group comparison are not relevant
as the Group is in the process of multiple phase 3 trials as outlined in the directors’ report.
Remuneration of key management personnel
Amounts of remuneration
Details of the remuneration of key management personnel of the Group are set out in the following tables.
Dimerix Limited and controlled entity
Remuneration report
30 June 2021
28
Short-term
benefits
Post-
employment
benefits
Share based
payment
Performance
related %
2021
Salary & fees
$
Bonus2
$
Other1
$
Superannuation
$
Options
$
Total
$
Non-Executive Directors:
Sonia Poli
60,000
-
-
-
-
60,000
0%
Hugh Alsop
58,699
-
-
1,301
-
60,000
0%
James Williams
86,758
-
-
8,242
-
95,000
0%
Executive Employees:
Nina Webster (CEO)
334,290
-
17,464
21,694
34,401
407,849
8%
Total
539,747
-
17,464
31,237
34,401
622,849
1 Other comprises annual leave expense for the year
2 Performance bonus for the year based on agreed criteria
Short-term employee benefits
Post-
employment
benefits
Share-based
payment
Performance
related %
2020
Salary &
fees
$
Bonus2
$
Other1
$
Superannuation
$
Options
$
Total
$
Non-executive directors
Sonia Poli
45,000
-
-
-
-
45,000
0%
David Franklyn3
11,644
-
-
1,106
-
12,750
0%
Hugh Alsop
41,096
-
-
3,904
-
45,000
0%
James Williams
73,059
-
-
6,941
-
80,000
0%
Executive Employees
Nina Webster (CEO)
303,900
91,170
8,996 21,003
113,769
538,838
38%
Total
474,699
91,170
8,996
32,954
113,769
721,588
1 Other comprises annual leave expense for the year
2 Performance bonus for the year based on agreed criteria
3 David Franklyn resigned as a Non-Executive Director on 11 October 2019
No key management personnel appointed during the year received a payment as part of his or her
consideration for agreeing to hold the position.
Bonuses and share-based payments granted as compensation for the current financial year
Bonuses
No bonuses have been awarded in 2021. (2020: Nina Webster achieved the milestones for a performance
bonus of $91,170 during the year which forms part of salary and fees.)
Dimerix Limited and controlled entity
Remuneration report
30 June 2021
29
Incentive share-based payments arrangements
No share options were issued to key management personnel as remuneration during the year (30 June
2020: nil). No share options were exercised by key management personnel during the year (30 June 2020:
nil).
The total share-based payment expense amortised for the financial year ended 30 June 2021 in relation to
key management personnel was $34,401 (30 June 2020: $113,769).
No directors’ options were cancelled in 2021.
Share-based compensation
Issue of shares
There were no shares issued to directors and other key management personnel as part of compensation
during the year ended 30 June 2021.
Key terms of employment contracts
Dr James Williams
On 1 April 2019 Dr James Williams terms as Non-Executive Chairman were reconfirmed and his
remuneration and other terms of appointment were formalised in a revised letter of appointment, the key
terms and conditions of which are:
●
Term of Agreement – monthly until termination by the Company or until the next AGM.
●
No entitlement to any compensation or damage or payment of any further director’s fees for any
period after termination
●
Remuneration of $80,000 per annum inclusive of superannuation.
From 01 July 2020 remuneration increased to $95,000 per annum inclusive of superannuation
Dr Sonia Poli
On 3 July 2015, Dr Sonia Poli was appointed as Non-Executive Director and her remuneration and other
terms of appointment were formalised in a letter of appointment, the key terms and conditions of which
are:
●
Term of agreement – monthly until termination by the Company or until the next AGM.
●
No entitlement to any compensation or damage or payment of any further director’s fees for any
period after termination
●
Remuneration of $45,000 per annum (plus GST if applicable).
From 01 July 2020 remuneration increased to $60,000 per annum inclusive of superannuation.
Mr Hugh Alsop
On 1 May 2017 Mr Hugh Alsop was appointed as Non-Executive Director and the terms of the appointments
were formalised in a letter of appointment with the following key terms and conditions:
●
Term of agreement – monthly until termination by the Company or until the next AGM.
●
No entitlement to any compensation or damage or payment of any further director’s fees for any
period after termination.
●
Remuneration of $45,000 per annum (inclusive of superannuation).
Dimerix Limited and controlled entity
Remuneration report
30 June 2021
30
From 01 July 2020 remuneration increased to $60,000 per annum inclusive of superannuation. During the
year the company paid Hugh Alsop’s superannuation of $3,904 as part of his salary and fees, as the director
received a superannuation exemption certificate from the Australian Taxation Office.
Dr Nina Webster
On 27 August 2018 Nina Webster was appointed CEO and Managing Director with the following key terms
and conditions:
●
Remuneration of $303,900 per annum exclusive of superannuation and short-term incentives of up to
30% base salary against agreed stretch milestones.
●
Term of agreement – employment may be terminated by either party giving three month’s notice.
From 01 July 2020 remuneration increased to $355,984 per annum inclusive of superannuation.
On appointment to the board, all non-executive directors are required to sign a letter of appointment with
the Company. The letter of appointment summarises the Board policies and terms, including compensation
relevant to the office or director.
Key management personnel equity holdings
Fully paid ordinary shares of Dimerix Limited
2021
Balance at 1 July
Received as part of
remuneration
Additions
Disposals/
others
Balance at 30 June
Sonia Poli1
130,000
-
-
-
130,000
Hugh Alsop 2
-
-
-
-
-
James Williams 1
2,252,355
-
-
-
2,252,355
Nina Webster 4
45,000
-
-
-
45,000
2,427,355
-
-
-
2,427,355
2020
Balance at 1 July
Received as a part
of renumeration
Additions
Disposals/
others
Balance at 30 June
Sonia Poli 1
130,000
-
-
-
130,000
High Alsop 3
-
-
-
-
-
James Williams 1
2,252,355
-
-
-
2,252,355
Nina Webster 4
45,000
-
-
-
45,000
David Franklyn2
462,157
-
-
(462,157)
-
2,889,512
-
-
(462,157)
2,427,355
1 Appointed 3 July 2015
2 Resigned 11 October 2019
3 Appointed 1 May 2017
4 Appointed 27 August 2018
Dimerix Limited and controlled entity
Remuneration report
30 June 2021
31
Share options of Dimerix Limited
2021
Balance at
1 July
Granted as
compensation
Exercised/
Cancelled
Balance at
30 June
Balance
vested at
30 June
Vested and
exercisable
Options vested
during year
No.
No.
No.
No.
No.
No.
No.
Sonia Poli
125,000
-
(125,000)
-
-
-
-
Hugh Alsop
125,000
-
(125,000)
-
-
-
-
James Williams
175,000
-
(175,000)
-
-
-
-
Nina Webster
6,351,975
-
-
6,351,975 5,293,313
5,293,313
2,117,325
2020
Balance at
1 July
Granted as
compensation
Exercised/
Cancelled
Balance at
30 June
Balance
vested at
30 June
Vested and
exercisable
Options vested
during year
No.
No.
No.
No.
No.
No.
No.
Sonia Poli
125,000
-
-
-
-
-
-
Hugh Alsop
125,000
-
-
-
-
-
-
James Williams
175,000
-
-
-
-
-
-
Nina Webster
6,351,975
-
-
6,351,975 3,175,988
3,175,988
-
David Franklyn1
125,000
-
(125,000)
-
-
-
-
1 125,000 options previously issued to David Franklyn were cancelled on 12 November 2019.
This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the
Corporations Act 2001.
On behalf of the directors
___________________________
Dr James Williams
Chairman
16 August 2021
Melbourne, Victoria
PO Box 1908
West Perth WA 6872
Australia
Level 2, 1 Walker Avenue
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
Liability limited by a scheme approved
under Professional Standards Legislation
16 August 2021
Board of Directors
Dimerix Limited
425 Smith St
Fitzroy, Victoria 3065
Dear Directors
RE:
DIMERIX 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 Dimerix Limited.
As Audit Director for the audit of the financial statements of Dimerix Limited for the year ended 30 June
2021, 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
Martin Michalik
Director
Auditor’s independence declaration
32
Liability limited by a scheme approved under Professional Standards Legislation
PO Box 1908
West Perth WA 6872
Australia
Level 2, 1 Walker Avenue
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
DIMERIX LIMITED
Report on the Audit of the Financial Report
Our Opinion
We have audited the financial report of Dimerix Limited (the Company) and its subsidiary (the Group),
which comprises the consolidated statement of financial position as at 30 June 2021, the consolidated
statement of profit or loss and other comprehensive income, the consolidated statement of changes in
equity and the consolidated statement of cash flows for the year then ended, and notes to the financial
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 2021 and of its financial
performance for the year then ended; and
(ii)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report
section of our report. We are independent of the Group in accordance with the auditor independence
requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional
and Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants (the Code) that are
relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical
responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional 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.
Independent auditor’s report
33
Key Audit Matter
How the matter was addressed in the audit
Accounting for Research and Development
tax incentive and other government
incentives
The Group obtains Research and Development
(“R&D”) tax incentive payments from the
Australian Government that reduces the net
overall cost incurred by the Group in respect to
its R&D activities. During the year, the Group
recognised R&D tax incentive income and a
corresponding receivable of $3,695,562 under
the relevant scheme for the 2021 financial year.
(Refer to Notes 6 and 10 to the consolidated
financial
statements
UHsSHFWLYHO\.
The
accounting policy is outlined in Note 2.6).
In addition, the Group also recognised other
government incentives which amounted to
$729,964 during the year in relation to the grant
from the Australian Government’s Medical
Research Future Fund through the Biomedical
Translation Bridge program that has been
awarded to the Group. Refer to Notes 6 and 31
to the consolidated financial statement.
This was a key audit matter because of the
judgment involved by the Group in assessing
the appropriate quantum of R&D tax incentive
and other government incentives to recognise
due to the complexity of the eligibility rules and
regulations governing these tax incentives.
Inter alia, our audit procedures included the
following:
R&D tax incentive:
i.
Developed
an
understanding
of
the
government
eligibility
requirements
for
obtaining the R&D tax incentive and the
basis used by the Group to recognise this
incentive;
ii. Tested samples of expenditure including
employee costs allocated by the Group to
R&D activities to supporting documentation;
iii. Compared the R&D tax incentive amounts
recorded by the Group and subsequently
received relating to the 2020 financial year to
supporting documentation;
iv. Compared the Group’s calculations of the
R&D tax incentive to the prior year approved
R&D tax incentive calculations; and
v. Evaluated the adequacy of the disclosures
made by the Group in the consolidated
financial report in view of the requirements of
the Australian Accounting Standards.
Other government incentives:
i.
Inspected the agreements between the
Group
and
the
relevant
parties
and
understand the conditions attached to the
respective grants and respective application
and approval procedures;
ii. Evaluated whether the conditions attached
to the grants have been met and traced the
income recognised to underlying supporting
documents; and
iii. Evaluated the adequacy of the disclosures
made by the Group in the consolidated
financial report in view of the requirements
of the Australian Accounting Standards.
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 2021 but does not include the financial
report and our auditor's report thereon.
34
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.
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
3ϱ
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.
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
We have audited the Remuneration Report included in pages 26 to 31 of the directors’ report for the year
ended 30 June 2021. 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.
Opinion on the Remuneration Report
In our opinion, the Remuneration Report of Dimerix Limited for the year ended 30 June 2021 complies with
section 300A of the Corporations Act 2001.
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
(An Authorised Audit Company)
Martin Michalik
Director
West Perth, Western Australia
16 August 2021
3ϲ
Dimerix Limited and controlled entity
Directors’ declaration
30 June 2021
37
Directors’ declaration
In the directors' opinion:
●
the attached consolidated financial statements and notes comply with the Corporations Act 2001, the
Accounting Standards, the Corporations Regulations 2001 and other mandatory professional
reporting requirements;
●
the attached consolidated financial statements and notes comply with International Financial
Reporting Standards as issued by the International Accounting Standards Board as described in note 2
to the financial statements;
●
the attached financial statements and notes give a true and fair view of the Group's financial position
as at 30 June 2021 and of its performance for the financial year ended on that date; and
●
there are reasonable grounds to believe that the Group will be able to pay its debts as and when they
become due and payable.
●
The directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of directors made pursuant to section 295(5) of the Corporations Act
2001.
On behalf of the directors
___________________________
Dr James Williams
Chairman
16 August 2021
Melbourne, Victoria
Dimerix Limited and controlled entity
Consolidated statement of profit or loss and other comprehensive income
30 June 2021
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with
the accompanying notes
38
Consolidated statement of profit or loss and other
comprehensive income for the financial year ended 30 June
2021
Continuing operations
Note
30 June
2021
30 June
2020
Revenue
5
1,506
2,700
Other Income
6
4,554,926
2,421,536
Expenses
Research and development expenses
(9,332,356)
(5,537,528)
Corporate administration expenses
7
(1,559,841)
(1,251,581)
Share-based payment expenses
22
(35,969)
(129,280)
Loss before income tax expense
(6,371,734)
(4,494,153)
Income tax expense
8
-
-
Loss after income tax expense for the year attributable to continuing
operations
19
(6,371,734)
(4,494,153)
Other comprehensive income for the year, net of tax
-
-
Total comprehensive loss for the year
(6,371,734)
(4,494,153)
Cents
Cents
Basic and diluted loss per share
9
(3.22)
(2.62)
Dimerix Limited and controlled entity
Consolidated statement of financial position as at 30 June 2021
30 June 2021
The above consolidated statement of financial position should be read in conjunction with the accompanying notes
39
Consolidated statement of financial position as at 30 June 2021
Note
30 June
2021
30 June
2020
Current assets
Cash and cash equivalents
25
5,250,094
7,785,706
Trade, other receivables and prepayments
10
4,126,365
2,571,720
Right-of-use asset
11
42,823
30,353
Total current assets
9,419,282 10,387,779
Non-current assets
Property, plant and equipment
12
1,422
1,232
Total non-current assets
1,422
1,232
Total assets
9,420,704 10,389,011
Current liabilities
Trade and other payables
13
2,793,858
1,505,457
Borrowings
14
5,050,000
1,063,015
Lease liabilities
11
43,093
31,317
Provisions
15
65,254
29,958
Total current liabilities
7,952,205
2,629,747
Total liabilities
7,952,205
2,629,747
Net assets
1,468,499
7,759,264
Equity
Issued capital
17
28,389,114
28,344,114
Reserves
18
886,952
850,983
Accumulated losses
19
(27,807,567) (21,435,833)
1,468,499
7,759,264
Dimerix Limited and controlled entity
Consolidated statement of changes in equity
30 June 2021
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes
40
Consolidated statement of changes in equity for the financial
year ended 30 June 2021
Note
Issued capital
$
Reserves
$
Accumulated
Losses
$
Total equity
$
Balance at 1 July 2019
20,474,930
669,627
(16,941,680)
4,202,877
Loss after income tax expense for the year
-
-
(4,494,153) (4,494,153)
Other comprehensive income for the year
-
-
-
-
Total comprehensive loss for the year
-
-
(4,494,153) (4,494,153)
Issue of ordinary shares
17
8,340,129
-
-
8,340,129
Share issue costs
17
(470,945)
-
-
(470,945)
Recognition of share-based payments
18
-
181,356
-
181,356
Balance at 30 June 2020
28,344,114
850,983
(21,435,833)
7,759,264
Note
Issued capital
$
Reserves
$
Accumulated
Losses
$
Total equity
$
Balance at 1 July 2020
28,344,114
850,983
(21,435,833)
7,759,264
Loss after income tax expense for the year
-
-
(6,371,734) (6,371,734)
Other comprehensive income for the year
-
-
-
-
Total comprehensive loss for the year
-
-
(6,371,734) (6,371,734)
Issue of ordinary shares
17
45,000
-
-
45,000
Recognition of share-based payments
18
-
35,969
-
35,969
Balance at 30 June 2021
28,389,114
886,952
(27,807,567)
1,468,499
Dimerix Limited and controlled entity
Consolidated statement of cash flows
30 June 2021
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes
41
Consolidated statement of cash flows for the financial year
ended 30 June 2021
Note
30 June
2021
30 June
2020
Cash flows from operating activities
Receipt of Research and Development tax refund
2,338,254
1,180,759
Other government grants and incentives
797,882
-
Other income
116,717
83,283
Payments to suppliers and employees
(9,614,797)
(5,988,222)
Interest received
1,506
2,700
Net cash (used in) operating activities
25
(6,360,438)
(4,721,480)
Cash flows from investing activities
Payments for property, plant and equipment
12
(9,572)
-
Proceeds from disposal of non-current assets
13,951
-
Net cash provided by investing activities
4,379
-
Cash flows from financing activities
Proceeds from issue of shares
17
45,000
8,340,129
Payments for share issue costs
-
(441,406)
Proceeds from borrowings
5,000,000
1,024,128
Transaction costs related to loans and borrowings
(7,700)
-
Repayment of borrowings
(1,072,759)
-
Repayment of lease liability
(36,892)
(11,759)
Interest paid
(102,340)
-
Net cash provided by financing activities
3,825,309
8,911,092
Net (decrease)/increase in cash and cash equivalents
(2,530,750)
4,189,612
Cash and cash equivalents at the beginning of the financial year
7,785,706
3,563,286
Effects of exchange rate changes on cash and cash equivalents
(4,862)
32,808
Cash and cash equivalents at the end of the financial year
25
5,250,094
7,785,706
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2021
42
Notes to the consolidated financial statements
1. General information
Dimerix Limited (“Dimerix” or the “Company”) and its subsidiary (the “Group” or “Consolidated Entity”) is a
listed public company incorporated in Australia. The address of its registered office and principal place of
business is disclosed in the corporate directory to the annual report.
The principal activities of the Group are described in the directors’ report.
Significant accounting policies
2.1 Statement of compliance
These consolidated 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 consolidated financial statements comprise the financial statements of the Group. For the purposes of
preparing the financial statements, the Group 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 Group comply with International Financial
Reporting Standards (“IFRS”).
The consolidated financial statements were authorised for issue by the directors on 16 August 2021.
2.2 Basis of preparation
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. The financial statements have been prepared on a going concern basis. 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 financial statements is determined on such
a basis, except for share-based payment transactions that are within the scope of AASB 2, leasing
transactions that are within the scope of AASB 16 and measurements that have some similarities to fair
value but are not fair value, such as net realisable value in AASB 2 or value in use in AASB 136.
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:
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2021
43
●
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
●
Level 3 inputs are unobservable inputs for the asset or liability.
2.3 Business combinations
Acquisitions of business 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 Company, liabilities incurred by the Company to the former owners of
the acquiree and the equity instruments issued by the Company 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:
●
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 Company 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 acquiree (if any), the excess is recognised immediately in profit or loss as a bargain purchase gain.
Where the consideration transferred by the Company 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, or AASB 137 ‘Provisions, Contingent Liabilities and Contingent Assets’, as
appropriate, with the corresponding gain or loss being recognised in profit or loss.
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2021
44
If the initial accounting for a business combination is incomplete by the end of the reporting period in which
the combination occurs, the Company 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.
2.4 Going concern
The consolidated financial statements have been prepared on the going concern basis which contemplates
the continuity of normal business activity and the realisation of assets and the settlement of liabilities in the
normal course of business.
For the year ended 30 June 2021 the Group incurred a loss after tax of $6,371,734 (30 June 2020:
$4,494,153) and a net cash outflow from operations of $6,360,438 (30 June 2020: $4,721,480). At 30 June
2021, the Group had current assets of $9,419,282 (30 June 2020: $10,387,779), current liabilities of
$7,952,205 (30 June 2020: $2,629,747) and current cash holding was $5,250,094 (30 June 2020:
$7,785,706). Commitment expenditure is disclosed in note 26.
The directors have reviewed the business outlook and cash flow forecasts and are of the opinion that the
use of the going concern basis of accounting is appropriate as they believe the Group will continue to raise
further funds and meet its expenditure commitments as required.
Should the Group be unable to continue as a going concern, it may be required to realise its assets and
extinguish its liabilities other than in the normal course of business and at amounts different to those stated
in the financial statements. The consolidated financial statements do not include any adjustments relating
to the recoverability and classification of liabilities that may be necessary should the Group be unable to
continue as a going concern.
2.5 Goodwill
Goodwill arising on an acquisition of a business is carried at cost as established at the date of the acquisition
of the business (see 2.3 above) less accumulated impairment losses, if any. For the purposes of impairment
testing, goodwill is allocated to each of the Group’s 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.
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2021
45
2.6 Revenue recognition
Under AASB15 Revenue from Contracts with Customers, revenue is recognised when a performance
obligation is satisfied, being when control of the goods or services underlying the performance obligation is
transferred to the customer.
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.
2.6 Revenue recognition (continued)
Research and Development Incentive
These are accounted on an accrual basis once it is probable that it will be received.
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 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 recognised in
profit or loss in the period in which they become receivable
2.7 Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets,
which are assets that necessarily take a substantial period to get ready for their intended use or sale, are
added to the cost of those assets, until such time as the assets are substantially ready for their intended use
or sale.
Investment income earned on the temporary investment of specific borrowings pending their expenditure
on qualifying assets is deducted from the borrowing costs eligible for capitalisation.
All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
2.8 Taxation
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 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.
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2021
46
2.8 Taxation (continued)
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 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.
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.
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.
2.9 Intangible assets
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).
Subsequent to initial recognition, intangible assets acquired in a business combination are reported at cost
less accumulated amortisation and accumulated impairment losses, on the same basis as intangible assets
that are acquired separately.
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2021
47
2.9 Intangible assets (continued)
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.
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
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 value less cost of disposal 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.
2.10 Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation and accumulated
impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets (other than freehold land and
properties under construction) less their residual values over their useful lives, using the straight-line
method. The estimated useful lives, residual values and depreciation method are reviewed at the end of
each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.
An item of property, plant and equipment is derecognised upon disposal or when no future economic
benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal
or retirement of an item of property, plant and equipment is determined as the difference between the
sales proceeds and the carrying amount of the asset and is recognised in profit and loss.
2.11 Borrowings
All loans and borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings
are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction
costs) and the redemption amount is recognised in profit or loss over the year of the loans and borrowings
using the effective interest method.
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2021
48
Borrowings are derecognised from the statement of financial position when the obligation specified in the
contract has been discharged, cancelled or expires. The difference between the carrying amount of the
borrowing derecognised and the consideration paid is recognised in profit or loss as other income or finance
costs.
All borrowings are classified as current liabilities unless the Group has an unconditional right to defer
settlement of the liability for at least 12 months after the end of the reporting year.
2.12 Provisions
Provisions are recognised when the consolidated entity has a present (legal or constructive) obligation as a
result of a past event, it is probable the consolidated entity will be required to settle the obligation, and a
reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present
obligation at the 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.
2.13 Employee benefits
Short-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.
2.14 Share-based payments 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 22.
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.
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2021
49
Equity-settled share-based payment transactions with parties other than employees are measured at the
fair 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.
For cash-settled share-based payments, a 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.
2.15 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 transactions 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 expires.
Classification and subsequent 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:
●
amortised cost;
●
fair value through other comprehensive income (FVOCI); and
●
fair value through profit or loss (FVPL).
Classifications are determined by both:
●
The contractual cash flow characteristics of the financial assets; and
●
The entities business model for managing the financial asset.
Financial assets at amortised cost
Financial assets are measured at amortised cost if the assets meet the following conditions (and are not
designated as FVPL):
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2021
50
●
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,
trade and most other receivables fall into this category of financial instruments.
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:
●
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 designated as hedging instruments in an effective
hedge, as appropriate.
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.
The Group’s trade and other payables, borrowing and lease liability are financial liabilities measured at
amortised cost.
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2021
51
Impairment
The Group assesses on a forward-looking basis the expected credit losses 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, which requires
expected lifetime losses to be recognised from initial recognition of the receivables.
2.16 Goods and Services Tax
Revenues, expenses and assets are recognised net of the amount of 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 arising
from investing and financing activities which is recoverable from, or payable to, the taxation authority is
classified within operating cash flows.
2.17 New Accounting Standards and Interpretations not yet mandatory or early adopted
The Group has adopted all of the new or amended Accounting Standards and Interpretations issued by the
Australia Accounting Standards Board ('AASB') that are mandatory for the current reporting period. Any
new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early
adopted.
2.17.1 Other standards not yet applicable
There are no other standards that are not yet effective and that would be expected to have a material
impact on the Group in the current or future reporting periods and on foreseeable future transactions.
3. Critical accounting judgements, estimates and assumptions
In the application of the Group’s accounting policies, which are described in note 2, the directors of the
Group 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 in the revision and future periods if the revision affects both current and future
periods.
In preparing these financial statements, the significant judgements were made by management in applying
the Group’s accounting policies and the key sources of estimation uncertainty.
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2021
52
3.1 Other key sources of estimation uncertainty
●
Valuation of share options issued to management, staff and consultants.
●
Determination of expenses eligible for research and development tax incentive.
●
The potential deferred tax asset arising from the tax losses and temporary differences have not been
recognised as an asset because recovery of the tax losses is not yet considered probable.
●
Valuation of right of use asset and lease liability.
4. Operating segments
From the period beginning 1 July 2016 the Board considers that the Group has only operated in one
Segment, being investment in research and development of biopharmaceutical drugs. The financial
information presented in the consolidated statement of financial profit or loss and other comprehensive
income and consolidated statement of financial position represents the information for the business
segment.
5. Revenue
2021
2020
$
$
Interest received
1,506
2,700
6. Other Income
2021
2020
$
$
Research & Development tax incentive
3,695,562
2,338,254
Other income1
129,400
83,282
Other government incentives 2
729,964
-
4,554,926
2,421,536
1In 2021 $116,717 was received in relation to the Boosting Cashflow for Employers Incentive (2020: $83,282).
2 In 2021 $729,964 was received in relation to the MTP connect BTB Grant (2020: $0).
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2021
53
7. Corporate administration expenses
Loss for the year has been arrived at after charging the following items of expenses:
2021
2020
$
$
Company secretary fees
24,000
24,000
Depreciation and amortisation
44,601
13,529
Directors renumeration
215,000
198,502
Salary and wages
351,855
318,758
Rental expense
4,084
39,287
Legal and professional fees
49,747
10,655
Share registry fees
35,501
32,857
Insurance expenses
150,024
137,301
Other administration expenses
685,029
476,692
1,559,841
1,251,581
8. Income tax expense
8.1 Income tax recognised in profit and loss
2021
2020
$
$
Current tax benefit
(518,798)
(408,126)
Deferred tax expense
106,320
11,651
Tax losses not recognised
412,478
396,475
Total Tax expense/(benefit)
-
-
2021
2020
$
$
Numerical reconciliation of income tax benefit and tax at the statutory rate
Loss before income tax expense
(6,371,734)
(4,494,153)
Tax at the statutory tax rate of 26% (2020: 27.5%)
(1,656,651)
(1,235,892)
Tax effect amounts which are not deductible/(taxable) in calculating taxable
loss:
Non-deductible expenses
2,197,243
1,505,341
Non-assessable income
(953,070)
(665,924)
Effect of unused tax losses not recognised as deferred tax assets
412,478
396,475
Income tax benefit
-
-
The tax rate used for the reconciliation above is the corporate tax rate of 26.00% (30 June 2020:27.50%)
payable by Australian corporate entities on taxable profits under Australian tax law.
The Group has no franking credits available for recovery in future years.
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2021
54
8.2 Income tax recognised directly in equity
30 June 2021 30 June 2020
Current tax
$
$
Share issue costs
53,051
54,467
Deferred tax
Share issue costs deductible over 5 years
10,347
103,608
63,398
158,075
8.3 Unrecognised deferred tax assets
30 June 2021 30 June 2020
$
$
Unused tax losses for which no deferred tax assets have been recognised
3,732,003
3,497,332
Temporary differences
145,244
288,362
All unused tax losses were incurred by Australian entities.
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 Group complies with the conditions for deductibility imposed by tax
legislation.
9. Basic and diluted loss per share
2021
2020
Basic and diluted loss per share (cents per share)
(3.22)
(2.62)
The loss and weighted average number of ordinary shares used in the calculation of basic earnings per share
are as follows:
2021
2020
$
$
Loss after income tax attributable to the owners of Dimerix Limited
(6,371,734)
(4,494,153)
2021
2020
Weighted average number of ordinary shares for the purposes of basic and
diluted loss per share
197,877,044 171,518,834
There is no dilution of shares due to options therefore options are not included in the calculation of diluted
loss per share.
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2021
55
10. Trade, other receivables and prepayments
30 June 2021 30 June 2020
$
$
Other receivables
4,007,815
2,464,081
Prepayments
118,550
107,639
4,126,365
2,571,720
The other receivables at the reporting date include Research and Development tax incentive of $3,695,562
(30 June 2020: $2,338,254). This amount is based on criteria of eligible expenditure set out by AusIndustry.
At the reporting date, none of the receivables are past due or impaired.
11. Right-of-use asset and lease liability
11.1 Right-of-use assets
30 June 2021 30 June 2020
$
$
Land and buildings - on initial recognition
47,689
42,494
Less: Accumulated depreciation
(4,866)
(12,141)
Carrying value at end of year
42,823
30,353
11.2 Lease liability
30 June 2021 30 June 2020
$
$
Current
Property Lease Liability
43,093
31,317
Non-current
Property Lease Liability
-
-
Total Lease Liability
43,093
31,317
30 June 2021 30 June 2020
$
$
Depreciation - right of use asset
35,219
12,141
Interest expense - lease liability
979
583
Other leases classified as short-term or low value asset
4,084
39,287
Lease payments during the year
36,892
11,759
Option to extend or terminate
The Group uses hindsight in determining the lease term where the contract contains options to extend or
terminate the lease.
Property lease
The above right-of-use asset (ROU) and lease liability relate to the office lease entered into by the Group.
The lease has been accounted for in accordance with AASB 16 adopted by the Group on 1 July 2019 under
the modified retrospective approach.
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2021
56
During the year, the Group signed a new lease agreement with the same lessor upon expiry of the current
lease agreement. The new lease was for a different underlying asset and therefore the lease was accounted
for as a separate lease in accordance with AASB16. The accounting for the original lease remains unchanged.
The right-of-use asset is being depreciated over the lease term on a straight-line basis which is
approximately 12 months for the lease in place at 30 June 2021. Depreciation expense of $35,219 (30 June
2020: $12,141) was included in corporate administration expense in the consolidated statement of profit
or loss and other comprehensive income.
At initial recognition, the lease liability was measured as the present value of minimum lease payments
using the Group’s incremental borrowing rate of 5.03%. The incremental borrowing rate was based on the
unsecured interest rate that would apply if finance was sought for an amount and time period equivalent
to the lease requirements of the Group. Each lease payment is allocated between the liability and interest
expense. The interest expense of $979 (30 June 2020: $583) was included in corporate administration
expense in the consolidated statement of profit or loss and other comprehensive income.
12. Property, plant and equipment
30 June 2021 30 June 2020
Non-current assets
$
$
Computer equipment - at cost
27,285
17,713
Less: Accumulated depreciation
(25,863)
(16,481)
1,422
1,232
30 June 2021 30 June 2020
Cost or Valuation
$
$
Balance at 1 July
17,713
17,713
Additions
9,572
-
Balance at 30 June
27,285
17,713
27,285
17,713
30 June 2021 30 June 2020
Accumulated depreciation
$
$
Balance at 1 July
16,481
15,093
Depreciation expense
9,382
1,388
Balance as at 30 June
25,863
16,481
Net book value
1,422
1,232
13. Trade and other payables
30 June 2021 30 June 2020
$
$
Trade payables
2,520,422
1,148,946
Accruals and other payables
273,436
356,511
2,793,858
1,505,457
Trade creditor payment terms are 30 days from end of month.
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2021
57
14. Borrowings
30 June 2021 30 June 2020
$
$
Principal amount
5,000,000
1,024,128
Accrued interest
50,000
38,887
5,050,000
1,063,015
During the current financial year, the Group entered into a unsecured loan agreement with major
shareholder, Mr Peter Meurs. Interest accrues at the compound rate of 1% per month, with a repayment
date of the earlier of 31 December 2021, or in the event of a funding event such as a capital raise or other
transaction exceeding $10 million, or receipt of R&D rebate exceeding $5 million.
During the prior financial year, the Group entered into a credit facility agreement with Radium Capital. The
credit facility represented an amount payable to Radium Capital and was secured by the Research and
Development Tax Incentive receivable for the financial year ended 30 June 2020. Interest was payable at
the rate of 15.00% per annum. The credit facility was repaid in full on 25 July 2020.
15. Provisions
30 June 2021 30 June 2020
$
$
Provision for employee entitlements
65,254
29,958
16. Subsidiary
30 June 2021 30 June 2020
%
%
Dimerix Bioscience Pty Ltd
100%
100%
17. Issued capital
30 June 2021 30 June 2020 30 June 2021 30 June 2020
Shares
Shares
$
$
Ordinary shares - fully paid
197,999,297 197,749,297
28,389,114
28,344,114
30 June 2021 30 June 2021 30 June 2020 30 June 2020
No.
$
No.
$
Balance at beginning of the year
197,749,297
28,344,114 158,799,437
20,474,930
Issue of ordinary shares
250,000
45,000
38,949,860
8,340,129
Capital raising costs
-
-
-
(470,945)
Balance at end of year
197,999,297
28,389,114 197,749,297
28,344,114
Fully paid ordinary shares carry one vote per share and carry the right to dividends. Ordinary shares
participate in the proceeds on winding up of the Company in proportion to the number of shares held.
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2021
58
18. Reserves
30 June 2021 30 June 2020
$
$
Share-based payments reserve
886,952
850,983
Share- based payments reserve
30 June 2021 30 June 2020
$
$
Balance at beginning of year
850,983
669,627
Arising on share-based payments*
35,969
181,356
Balance at end of year
886,952
850,983
*Included in share based payments for the prior period is $52,069 relating to issuance of options to
corporate advisors as part of the transaction cost for capital raising.
The total share-based payment expense for advisory options amortised for the financial year ended 30 June
2021 was $nil (30 June 2020: $22,530). The total share-based payment recognised as a cost of raising capital
and deducted from equity for the financial year ended 30 June 2021 was $nil (30 June 2020: $29,539)
Further information about share-based payments is set out in note 22.
19. Accumulated losses
30 June 2021 30 June 2020
$
$
Accumulated losses at the beginning of the financial year
(21,435,833) (16,941,680)
Loss after income tax expense for the year
(6,371,734)
(4,494,153)
Accumulated losses at the end of the financial year
(27,807,567) (21,435,833)
20. Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
21. Financial instruments
21.1 Capital management
The Group manages its capital to ensure entities in the Group will be able to continue as going concern
while maximising the return to stakeholders through the optimisation of the debt and equity balance.
The Group’s overall strategy remains unchanged from 30 June 2020.
The Group is not subject to any externally imposed capital requirements.
Given the nature of the business, the Group monitors capital on the basis of current business operations
and cash flow requirements.
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2021
59
21.2 Categories of financial instruments
30 June 2021 30 June 2020
Financial assets
$
$
Cash and cash equivalents
5,250,094
7,785,706
Trade and other receivables
4,007,815
2,464,081
9,257,909
10,249,787
Financial liabilities
Trade and other payables
2,793,858
1,505,457
Borrowing
5,050,000
1,063,015
Lease liability
43,093
31,317
7,886,951
2,599,789
21.3 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.
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.
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 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.
21.4 Market risk
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 21.6 below).
21.5 Foreign currency risk
The Group undertakes transactions denominated in foreign currencies; consequently, exposures to
exchange rate fluctuations arise. At 30 June 2021, the Company has cash denominated in US dollars
US$38,265 (30 June 2020: US$43,739). The A$ equivalent at 30 June 2021 is $51,046 (30 June 2020:
$63,781). A 5% movement in foreign exchange rates would increase the Group’s loss before tax by
approximately $2,552 (30 June 2020: $1,534).
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2021
60
21.6 Interest rate risk management
The sensitivity analyses below have been determined based on the exposure to interest rates for 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 2021 would increase/decrease by $48,908 (30 June 2020: $77,039).
21.7 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.
21.8 Liquidity risk
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.
2021
Carrying
amount
Less than 1
month
1-3 months 3-12 months
1 year to 5
years
Total
contractual
cash flows
$
$
$
$
$
$
Trade and other payables
2,793,858
36,626
2,709,610
47,622
-
2,793,858
Borrowing
5,050,000
-
50,000
5,000,000
-
5,050,000
Lease liability
43,093
3,836
11,605
27,652
-
43,093
7,886,951
40,462
2,771,215
5,075,274
-
7,886,951
2020
Carrying
amount
Less than 1
month
1-3 months 3-12 months
1 year to 5
years
Total
contractual
cash flows
$
$
$
$
$
$
Trade and other payables
1,505,457
66,252
1,378,996
60,209
-
1,505,457
Borrowing
1,063,015
-
1,063,015
-
-
1,063,015
Lease Liabilities
31,317
-
-
31,317
-
31,317
2,599,789
66,252
2,442,011
91,526
-
2,599,789
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2021
61
22. Share-based payment expenses
2021
2020
$
$
Arising on issuance of options
35,969
181,356
22.1 Employee share option 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 except where approval is given by shareholders at a general meeting.
Each option issued converts into one ordinary share of Dimerix Limited on exercise. 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.
There were no options issued to employees during the financial year ended 30 June 2021. The total share-
based payment expense amortised for the financial year ended 30 June 2021 was $35,969 (30 June 2020:
$129,280).
22.2 Options issued to advisors
The total share-based payment expense for options granted to Advisors amortised for the financial year
ended 30 June 2021 was $nil (30 June 2020: $22,530). The total share-based payment recognised as a cost
of raising capital brought directly to the statement of changes in equity was $nil (30 June 2020: $29,539).
22.3 Options on Issue
The following share-based payment arrangements were in existence at the end of the current reporting
period:
No.of
options.
Grant date
Expiry date
Grant date
fair value
Vesting date/Expected
Vesting Date
Exercise Price
2,117,325
30/10/2018
30/10/2023
$0.051
1/3vest on 30 October 2019
1/12 vest on 31 January 2020
1/12 vest on 30 April 2020
1/12
vest
on
31
July
2020
1/12 vest on 30 October 2020
1/12 vest on 31 January 2021
1/12 vest on 30 April 2021
1/12
vest
on
31
July
2021
1/12 vest on 30 October 2021
$0.18
2,117,325
30/10/2018
30/10/2023
$0.042
1/3 vest on 30 October 2019
1/12 vest on 31 January 2020
1/12 vest on 30 April 2020
1/12
vest
on
31
July
2020
1/12 vest on 30 October 2020
1/12 vest on 31 January 2021
1/12 vest on 30 April 2021
1/12
vest
on
31
July
2021
1/12 vest on 30 October 2021
$0.27
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2021
62
No.of
options.
Grant date
Expiry date
Grant date
fair value
Vesting
date/Expected
Vesting Date
Exercise Price
2,117,325
30/10/2018
30/10/2023
$0.036
1/3vest on 30 October 2019
1/12 vest on 31 January 2020
1/12 vest on 30 April 2020
1/12
vest
on
31
July
2020
1/12 vest on 30 October 2020
1/12 vest on 31 January 2021
1/12 vest on 30 April 2021
1/12
vest
on
31
July
2021
1/12 vest on 30 October 2021
$0.36
375,000
15/03/2019
31/01/2024
$0.026
1/2 vest on 30 September 2019
1/2 vest on 17 February 2021
$0.18
375,000
15/03/2019
31/01/2024
$0.18
1/2 vest on 30 September 2019
1/2 vest on 17 February 2021
$0.27
1,000,000
9/08/2019
9/08/2022
$0.023
09 August 2022
$0.18
750,000
9/12/2019
9/08/2022
$0.039
09 December 2022
$0.18
There has been no alteration of the terms and conditions of the above share-based payment arrangements
since the grant date.
The following options expired during the financial year:
•
2,000,000 on 24 September 2020
•
90,515 on 16 November 2020
•
50,000 on 17 March 2021
•
425,000 on 21 April 2021
The following options were exercised during the financial year:
•
125,000 on 27 October 2020
•
125,000 on 23 February 2021
Fair value of share options granted in the year
The deemed fair value of options granted during the year is $nil (30 June 2020: $52,069).
Movements in share options during the year
The following reconciles the share options outstanding at the beginning and end of the year:
2021
2021
2020
2020
Number of
options
Weighted
average
exercise
price
Number of
options
Weighted
average
exercise
price
No.
$
No.
$
Balance at beginning of the year
11,867,490
0.285
10,742,490
0.309
Granted during the year
-
-
1,750,000
0.180
Cancelled during the year
-
-
(125,000)
0.400
Exercised during the year
(250,000)
0.180
-
-
Expired during the year
(2,765,515)
0.412
(500,000)
0.400
Balance at end of year
8,851,975
0.248
11,867,490
0.285
Exercisable at end of year
7,793,313
0.246
8,066,504
0.296
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2021
63
22.4 Share options exercises during the year
There were 250,000 share options exercised during the year (30 June 2020: nil).
22.5 Share options outstanding at the end of the year
The share options outstanding at the end of the year had a weighted average exercise price of $0.248 and
a weighted average remaining contractual life of 772 days (30 June 2020: 929 days).
23. Key management personnel disclosures
The aggregate compensation made to directors and other members of key management personnel of the
Group is set out below:
2021
2020
$
$
Short-term employee benefits
557,211
574,865
Post-employment benefits
31,237
32,954
Share-based payments
34,401
113,769
622,849
721,588
24. Related party transactions
24.1 Key management personnel
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 and note 23.
24.2 Transactions with other related parties
All transactions between the Group and related parties are on an arms-length basis.
During the current financial year, the Group entered into a unsecured loan agreement with major
shareholder, Mr Peter Meurs. Interest accrues at the compound rate of 1% per month, with a repayment
date of the earlier of 31 December 2021, or in the event of a funding event such as a capital raise or other
transaction exceeding $10 million, or receipt of R&D rebate exceeding $5 million.
25. Reconciliation of loss after income tax to net cash used in operating activities
For the purposes of the consolidated statement of cash flows, cash and cash equivalents include cash on
hand and in banks, net of outstanding bank overdrafts. 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:
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2021
64
30 June 2021 30 June 2020
$
$
Cash and cash equivalents
5,250,094
7,785,706
Reconciliation of loss after taxable income to net cash used in operating activities
Cashflow from operating activities
Note
2021
2020
$
$
Loss after income tax expense for the year
(6,371,734)
(4,494,153)
Adjustments for:
Depreciation and amortisation
44,601
13,529
Share-based payments
18
35,969
151,811
Foreign exchange differences
4,862
(32,808)
Accrued interest on borrowings
163,063
39,470
Movement in working capital:
Increase in trade, other receivables and prepayments
(1,543,734)
(1,189,115)
Increase in prepayments
(10,911)
(7,866)
Increase in trade and other payables
1,282,150
786,083
Increase in other provisions
35,296
11,569
Net cash used in operating activities
(6,360,438)
(4,721,480)
26. Commitments and contingencies
The Group has entered into a number of agreements related to research and development activities. As at
30 June 2021, under these agreements, the Group is committed to making payments over future periods,
as follows:
30 June 2021
During the period 1 July 2021 – 30 June 2022
6,728,778
During the period 1 July 2022 – 30 June 2023
73,821
During the period 1 July 2023 – 30 June 2024
0
6,802,599
Where commitments are denominated in foreign currencies, the amounts have been converted to
Australian dollars based on exchange rates prevailing as at 30 June 2021.
Subsequent to financial year, the Group entered into a mandate with Canaccord Genuity in respect of the
proposed capital raising of fully paid ordinary shares in Dimerix Limited. The Group agrees to pay fees
equivalent to 6% of the gross proceeds raised from this capital raising.
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2021
65
27. Remuneration of auditors
During the financial year the following fees were paid or payable for services provided by Stantons
International Audit and Consulting Pty Ltd, the auditor of the company:
2021
2020
$
$
Audit services
Audit or review of the financial statements
38,000
36,952
Other non-audit services
-
-
38,000
36,952
28. Events after the reporting period
Subsequent to financial year, the Group entered into a mandate with Canaccord Genuity in respect of the
proposed capital raising of fully paid ordinary shares of Dimerix Limited.
Apart from the above, no other matter or circumstance has arisen since 30 June 2021 that has significantly
affected, or may significantly affect the Group's operations, the results of those operations, or the Group's
state of affairs in future financial years.
29. Parent entity information
The accounting policies of the parent entity, which have been applied in determining the 30 June 2021 and
30 June 2020 financial information shown below, are the same as those applied in the financial statements.
Refer to note 2 for a summary of significant accounting policies relating to the Group.
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
Parent
2021
2020
$
$
Loss after income tax
(6,286,513)
(4,303,177)
Total comprehensive loss
(6,286,513)
(4,303,177)
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2021
66
Statement of financial position
Parent
30 June 2021 30 June 2020
$
$
Current assets
4,720,494
7,005,762
Total assets
4,720,494
7,005,762
Total current liabilities
5,187,224
1,266,948
Total non-current liabilities
-
-
Total liabilities
5,187,224
1,266,948
Net (liabilities)/ assets
(466,730)
5,738,814
Equity
Issued capital
58,332,025
58,287,025
Share-based payments reserve
1,050,931
1,014,962
Accumulated losses
(59,849,686) (53,563,173)
Total (deficiency)/ equity
(466,730)
5,738,814
30. Government Assistance
The Company entered into a research project agreement with University of Western Australia (UWA) in
October 2019. The project utilised expertise at the Harry Perkins Institute of Medical Research and UWA.
The project was partially funded via a matched contribution totalling $50,000 from the Commonwealth
Government under the Innovations Connections Grant Scheme. The Government funding was provided
directly to the UWA via a separate funding agreement.
31. Government Grants
The Company was awarded a $1 million grant in September 2020 from the Australian Government’s Medical
Research Future Fund (MRFF) through the Biomedical Translation Bridge (BTB) program to support
development and clinical evaluation of DMX-200 as a new treatment for respiratory complications as a
result of COVID-19 in global clinical study.
Dimerix Limited and controlled entity
ASX Additional Information
30 June 2021
67
ASX Additional Information as at 6th August 2021
Corporate Governance Statement
The
Company’s
corporate
governance
statement
is
located
at
the
Company’s
website:
https://investors.dimerix.com/investor-centre/?page=corporate-governance.
Ordinary share capital
Holding Ranges
Holders
Total Units
% Issued Share Capital
1 - 1,000
293
144,225
0.07%
1,001 - 5,000
1,192
3,457,452
1.75%
5,001 - 10,000
631
5,069,691
2.56%
10,001 - 100,000
1,247
43,995,933
22.22%
100,001 - 9,999,999,999
282
145,331,996
73.40%
Totals
3,645
197,999,297
100.00%
Each ordinary share is entitled to vote when a poll is called, otherwise each member present at a meeting or
by proxy has one vote on a show of hands.
Options (as at 10th August 2021)
•
2,117,325 unlisted $0.18 expiring 30 October 2023 are held by Nina Webster;
•
2,117,325 unlisted $0.27 expiring 30 October 2023 are held by Nina Webster;
•
2,117,325 unlisted $0.36 expiring 30 October 2023 are held by Nina Webster;
•
375,000 unlisted $0.18 expiring 31 January 2024 are held by an individual ESOP holder;
•
375,000 unlisted $0.27 expiring 31 January 2024 are held by an individual ESOP holder;
•
1,000,000 unlisted $0.18 expiring 09 August 2022 are held by Taylor Nominees Pty Ltd
•
750,000 unlisted $0.18 expiring 09 August 2022 are held by two individual option holders. Unlisted
option holders holding more than 20% of these options are:
Ice Lake Investments Pty Ltd
637,500
Mintaka Nominees Pty Ltd
112,500
Options do not carry a right to vote.
Unmarketable parcels
There are 709 shareholdings held with less than a marketable parcel.
Substantial shareholders
Number of shares
% holding
Mr Peter Meurs
26,529,309
13.40%
Restricted securities
Nil
On-Market buy-back
There is no current on-market buy-back.
Dimerix Limited and controlled entity
ASX Additional Information
30 June 2021
68
Twenty (20) largest shareholders of quoted equity securities
Position
Holder Name
Holding
% IC
1
MR PETER FLETCHER MEURS
26,529,309
13.40%
2
BAVARIA BAY PTY LTD
7,316,992
3.70%
3
YODAMBAO PTY LTD
6,312,603
3.19%
4
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
2,587,890
1.31%
5
MR RICHARD STANLEY DE RAVIN
2,200,000
1.11%
6
MR JAMES VICTOR CAMILLERI
2,178,957
1.10%
7
MRS GWEN MURRAY PFLEGER
2,105,988
1.06%
8
MR TAYLOR NICHOLAS GREEN
2,100,000
1.06%
9
TOROHA PTY LTD
2,044,932
1.03%
10
SOLEQUEST PTY LTD
2,012,302
1.02%
11
JAMPASO PTY LTD
1,778,742
0.90%
11
MR ROHAN CHARLES EDMONDSON & MRS FIONNUALA CATHERINE
EDMONDSON
1,700,000
0.86%
12
FIRST CLASS SERVICES GROUP PTY LTD
1,440,000
0.73%
13
JEZMICKTOM PTY LTD
1,285,508
0.65%
14
JANAKA PTY LTD
1,176,785
0.59%
15
GOLDFIRE ENTERPRISES PTY LTD
1,074,657
0.54%
16
JGC SUPER PTY LTD
1,073,100
0.54%
17
STONERIDGE MINING PTY LTD
1,050,000
0.53%
18
J & J BANDY NOMINEES PTY LTD
1,050,000
0.53%
19
DR MARTIN MARSHALL
1,000,043
0.51%
20
BLAKE NOMINEES PTY LTD
1,000,001
0.51%
Total
69,017,809
34.86%
Total issued capital - selected security class(es)
197,999,297
100.00%
Dimerix Limited and controlled entity
Annual report 2021
30 June 2021
69