Dimerix Limited Annual Report 2022

FY2022 Annual Report · Dimerix Limited

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Annual Report
Dimerix Limitedand controlled entity

Dimerix HQ
425 Smith St, Fitzroy 3065
Victoria, Australia
T. 1300 813 321

Corporate directory

Board of Directors
• Dr James Howard Williams
Chairman
• Dr Sonia Maria 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
Fax:
+61 8 9321 2337

Stock Exchange
Australian Securities Exchange
Level 4, North Tower Rialto
525 Collins Street
Melbourne VIC 3000

ASX Code
DXB

“Keeping our employees,
consultants, partners and
patients safe has been our
top priority”.
Dr Nina Webster
CEO and Managing Director

Dimerix HQ
425 Smith St, Fitzroy 3065
Victoria, Australia
T. 1300 813 321

2
Dimerix annual report for the year ended
30 June 2020

Contents
Financial Outcomes ............................................................................................................. 3
2020 Business Achievements and 2021 Planned Milestones ............................................... 4
Chairman’s letter ................................................................................................................. 5
CEO & Managing Director’s report ...................................................................................... 6
Directors’ report .................................................................................................................. 8
Operating and financial review ......................................................................................... 12
Auditor’s independence declaration ................................................................................. 29
Independent auditor’s report ............................................................................................ 30
Directors’ declaration ........................................................................................................ 34
Consolidated statement of profit or loss and other comprehensive income for the year
ended 30 June 2020 ........................................................................................................... 35
Consolidated statement of financial position as at 30 June 2020....................................... 36
Consolidated statement of changes in equity for the year ended 30 June 2020 ................ 37
Consolidated statement of cash flows for the year ended 30 June 2020 ........................... 38
Notes to the consolidated financial statements for the year ended 30 June 2020 ............. 39
ASX Additional Information as at 1st August 2020 ............................................................. 71

Dimerix has multiple assets:
- commercially attractive
- growing markets
- high unmet needs
- potential fast pathway to market
- little or no current marketed competition
Dimerix is a biopharmaceutical company
developing innovative new therapies in areas
with unmet medical needs

Dimerix HQ
425 Smith St, Fitzroy 3065
Victoria, Australia
T. 1300 813 321

3
Financial Outcomes

Cash Reserves
at June 2020
$7.8 million
FY2020 net
operating cash
expenditure
$4.7m
R&D investment
costs
increased
Corporate/
Administration
costs
decreased

Dimerix HQ
425 Smith St, Fitzroy 3065
Victoria, Australia
T. 1300 813 321

4
2020 Business Achievements and 2021 Planned Milestones

FY
2020
FSGS Phase 2a study
fully recruited
Jul19
1
st DMX-200 patents
announced in Europe
Jul19
Diabetic Kidney
Disease Phase 2 study
fully recruited
Sep19
Complete GMP
commercial batch
manufacture
Oct19
Communicate with
FDA
Nov19
2
nd Innovation
Connections Grant
Oct19
DMX-700 added to
pipeline
Oct19
Develop Dimerix
pipeline
Diabetic Kidney
Disease Phase 2 data
Mid-2020
DMX-700 proof of
concept
Prepare ARDS
associated with
COVID-19 regulatory
submissions
FSGS
phase 2 data
Mid-2020
FY2021
Ongoing partnering
activities and discussions
DMX-200 FSGS
IND submission
Prepare for
commercial scale
manufacturing
DMX-200
in ARDS data
DMX-700 pre-IND
submission
Initiate pivotal
Ph3 study in FSGS
Generate
strong
investor
returns

Dimerix HQ
425 Smith St, Fitzroy 3065
Victoria, Australia
T. 1300 813 321

5
Chairman’s letter

Dear Shareholders,

As I look back on the past financial year – a time of profound health
and economic challenges globally – it is remarkable how much Dimerix
accomplished, not only interms of financial performance, but in our
progress in delivering innovative pharmaceutical products to help
those in need all around the world. We are very proud of what we have
accomplished and look forward to continuing to deliver on the
commitments that we make to you, our shareholders.

The 2020 financial year was challenging and one for which we evolved
rapidly to meet head on. Managing the impact of COVID-19 is one of
the fundamental challenges that all companies have faced this year. In
light of COVID-19 and the evolving advice to the general public, Dimerix
implemented a number of contingency plans in the event trial participants were required to self-isolate,
became ill or visits to medical institutions were restricted. Thanks to the foresight of the operational team
running the DMX-200 studies who started implementation of these risk-mitigation strategies in February
2020, we were delighted to meet all of our key milestones on schedule.

During the year, we concluded two Phase 2 clinical studies: the first in focal segmental glomerulosclerosis
(a rare kidney disease) which subsequently reported positive top line data in July 2020; and the second in
diabetic kidney disease, for which results are due in the few weeks of September.

Last year, your Board endorsed a revised business strategy which resulted in the company having a more
diverse asset portfolio moving forward, and which generated new intellectual property. In this regard, we
were very pleased to announce the addion of two further programs to our pipeline during the year, one in
Chronic Obstructive Pulmonary Disease; and one in Acute Respiratory Distress Syndrome associated with
COVID-19, which will not only diversify the risk but also diversify the potential sources of future revenue
streams.

With a small team, coupled to a small and very engaged board, our substantial achievements in the past
year are a reflection of the talent and dedication of the whole team.

I am very pleased to report that Dimerix is well positioned to deliver on the strategic activities through the
2021 financial year, and which are supported by a healthy cash position.

I would like to thank our shareholders, longstanding and new. Your ongoing support is appreciated as we
continue our journey towards the strategic goal. I would also like to extend my personal thanks to the
Board for their input over the last year. And finally, I would like to extend the Board and shareholders’
appreciation to Nina and her team for their great work in not just repositioning Dimerix for growth, but
delivering on that strategy. I look forward to reporting on the further growth of our strategic activities next
year!

Yours sincerely,

Dr James Williams
Non-Executive Chairman

“The quality of our people along with
the
support
of
the
medical
community have made Dimerix what
it is today. It is clear that our Dimerix
colleagues possess the willingness to
go beyond the scope of their daily
task and the competitive drive to
deliver above expectations.
Together, we will ultimately strive to
improve patients’ lives globally.”
Dr James Williams
Chairman of the Board

Dimerix HQ
425 Smith St, Fitzroy 3065
Victoria, Australia
T. 1300 813 321

6
CEO & Managing Director’s report

At the start of the financial year, we announced that we had
been focusing on creating a company that is competitive,
resilient and innovative, to allow us to successfully navigate in
a complex and constantly changing environment. We have
certainly been severely tested across all of these areas as a
result of the global pandemic during the second half of the
financial year, and we were extremely pleased to see our
systems and processes successfully adapt to this evolving and
challenging environment. Despite the global crisis, we have
continued to make solid progress against all of our near-term
strategic priorities that we believe will enable us to achieve our
corporate objective. Furthermore, whilst increasing R&D spend
significantly versus previous year, overheads were reduced,
and the company finished the year under budget. 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.

Maintaining strategic focus
We continued to devote a large part of our development resources and expenditure to the two Phase 2
program: DMX-200 for Diabetic Kidney Disease and DMX-200 for FSGS. We were very pleased to report
that all of the primary and secondary endpoints were met in the FSGS study Phase 2a study, and the
encouraging data that supports the ongoing development of DMX-200 for FSGS in parallel to our program
for patients with diabetic kidney disease. We do not have long until reporting on the larger diabetic kidney
disease Phase 2 study, which is expected in the first few weeks of September 2020, and which we hope
will further support the growing evidence of DMX-200 treatment effect in kidney diseases.

In addition to the widely acknowledged clinical studies in both indications, 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 November 2019 (back when flights overseas were a
thing) we met with the FDA to discuss the remaining development plan for DMX-200. This was a key
meeting for Dimerix, as it provided more clarity on the remaining development of DMX-200 for FSGS
through to market approval. Importantly, it also confirmed that the proposed non-clinical, or safety,
package and specifications for the drug manufactured by Dimerix is appropriate for market registration of
DMX-200.

Preparing for the future
We continued to expand and diversify our pipeline through both internal and external efforts. We added
two potential new medicines to our portfolio, DMX-700 for chronic obstructive pulmonary disease (COPD)
which is in pre-clinical development; and DMX-200 in Acute Respiratory Distress Syndrome, or ARDS,
associated with COVID-19 which is in late stage clinical development. As and when we have sufficient
resources, we also have a number of other commercially attractive opportunities identified, which will
boost the company’s pipeline in the longer term. Suffice to say, the 2020 financial year has been extremely
busy delivering on DMX-200 in two different indications, as well as diversifying risk through broadening
our product portfolio and thereby providing an exceptional and exciting platform for growth in the coming
years.
“We are extremely pleased to be in a
position to support the global initiative
in investigating the potential of multiple
therapies to treat COVID-19 patients
dying of ARDS. Dimerix is uniquely
positioned to support the global effort in
identifying COVID-19 treatments, as well
as having two late stage renal product
candidates.”
Dr Nina Webster
CEO & Managing Director

Dimerix HQ
425 Smith St, Fitzroy 3065
Victoria, Australia
T. 1300 813 321

Changes to the Board
Dimerix is a small and very dedicated team, who have been working extremely hard throughout the global
pandemic to deliver on promise on the two Phase 2 clinical studies in renal disease, as well as the ARDS
opportunity in patients with COVID-19 and the COPD program. I would like to acknowledge the
contribution of the Board to the successes of Dimerix during this financial year, and their on-going support
of the team. In October 2019, David Franklyn stepped down from the Board of Directors, having taken on
a new role that introduced a potential conflict of interest to his non-executive director responsibilities, and
was not replaced based on the skills and competency matrix assessment of the remaining Board.

Near-term strategic priorities
Additional analyses of the FSGS data is underway, and diabetic kidney disease data is expected in the
coming weeks. In parallel, Dimerix continues to undertake planning for its proposed global Phase 3 pivotal
program in FSGS. With regards to the ARDS associated with COVID-19 opportunity, we anticipate that the
new renin-angiotensin system domain protocol for the global
study, which includes DMX-200, will be available on the
REMAP-CAP website in the very near future. This timing is
very much driven by REMAP-CAP. Finally, the COPD program
proof-of-concept pre-clinical data is also anticipated in the
next couple of months.

This is undoubtedly a big year for Dimerix; and I know some
of you have been long term supporters of the Company. I
thank you for your patience and your support. Dimerix has
evolved significantly over the past couple of years, and now
has multiple assets in commercially attractive and growing
markets that all have a high unmet need, with little or no
current marketed competition, and with a potential fast
pathway to market. I believe that makes Dimerix a very
compelling proposition moving forward.

Thank you to the patients and their families who inspire us, to our employees for their dedication, to our
partners and collaborators who facilitate us, and to our shareholders for their support. I am so proud of
the progress we continue to make and am confident that together we can achieve all we set out to do. I
look forward to reporting on our progress throughout the 2021 financial year.

Dr Nina Webster
CEO & Managing Director

“Not only are we rapidly evolving our
business and taking bold steps in new
directions, but we are learning to think and
act differently in the new working
environment so that we can continue to
meet our challenges head-on.”
Dr Nina Webster
CEO & Managing Director

Dimerix HQ
425 Smith St, Fitzroy 3065
Victoria, Australia
T. 1300 813 321

8
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 2020.
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
BSc (Hons), MBA, PhD
Dr Nina Webster
PhD, M IP Law, MBA
Dr Sonia Poli
PhD
Mr Hugh Alsop
BSc(Hons), MBA

Non-executive Chairman,
joined the Board in July
2015. James is a Founder
and Investment Director of
Yuuwa Capital LP, a venture
capital firm based in
Western Australia and was
the CEO of Dimerix between
2007 and 2009. James is a
Director of Yuuwa investee
companies PolyActiva Pty
Ltd and alternate director of
Adalta Limited (ASX:1AD).
James is also 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.

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).

Non-Executive Director,
joined the Board in July
2015. Dr Poli is an
accomplished R&D
professional with 20 years
international experience in
large and small
pharmaceutical companies.
Sonia is currently serving as
Chief Scientific Officer at
Minoryx. 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.

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 was formerly
Chief Executive Officer 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 market.

The above‐named directors held office during the whole of the financial year and since the end of the
financial year.

David Franklyn resigned as a Non-Executive Director effective 11 October 2019.

Dimerix HQ
425 Smith St, Fitzroy 3065
Victoria, Australia
T. 1300 813 321

9
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
175,000
-
Sonia Poli
130,000
125,000
-
Hugh Alsop
-
125,000
-
Nina Webster
45,000
6,351,975
-

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, 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

No dividends have been paid or declared since the start of the financial year and the directors have not
recommended the payment of a dividend in respect of the financial year.

Dimerix HQ
425 Smith St, Fitzroy 3065
Victoria, Australia
T. 1300 813 321

10
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
Performance
Shares
Class of
shares
Exercise price of
option
Expiry date of options
Dimerix Limited
425,000
-
Ordinary
$0.40
20 April 2021
Dimerix Limited
90,515
-
Ordinary
$0.286
13 November 2020
Dimerix Limited
500,000
-
Ordinary
$0.25
24 September 2020
Dimerix Limited
1,500,000
-
Ordinary
$0.50
24 September 2020
Dimerix Limited
2,117,325
-
Ordinary
$0.18
30 October 2023
Dimerix Limited
2,117,325
-
Ordinary
$0.27
30 October 2023
Dimerix Limited
2,117,325
-
Ordinary
$0.36
30 October 2023
Dimerix Limited
625,000
-
Ordinary
$0.18
31 January 2024
Dimerix Limited
625,000
-
Ordinary
$0.27
31 January 2024
Dimerix Limited
1,750,000
-
Ordinary
$0.18
09 August 2022

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.

500,000 options lapsed during the year or since the end of the financial year.
125,000 options were cancelled during the year or since the end of the financial year.

Indemnification 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 such 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.

Directors’ meetings
The following table sets out the number of directors’ meetings (including meetings of committees of
directors) held during the financial year and the number of meetings attended by each director (while they
were a director or committee member). During the financial year, 15 board meetings were held.

Board of Directors
Directors
Held
Attended
Dr James Williams
15
15
Dr Sonia Poli
15
15
Mr Hugh Alsop
15
14
Dr Nina Webster
15
15

Dimerix HQ
425 Smith St, Fitzroy 3065
Victoria, Australia
T. 1300 813 321

Proceedings on behalf of the Group
No person has applied for leave of Court to bring proceedings on behalf of the Group or 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 any part of those proceedings.

Non-audit services
Details of amounts paid or payable to the auditor for non-audit services provided during the year by the
auditor are outlined in Note 26 to the financial statements.

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.

Auditor’s independence declaration
The auditor’s independence declaration is included on page 29 of the financial report.

Dimerix HQ
425 Smith St, Fitzroy 3065
Victoria, Australia
T. 1300 813 321

12
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 candidates: DMX-200 for FSGS; DMX-200 for diabetic kidney disease;
DMX-200 for ARDS associated with COVID-19; and DMX-700 for COPD; as well as the proprietary Receptor-
HIT assay technology.

Operating results
The loss of the Group for the year ended 30 June 2020, after accounting for income tax expense, amounted
to $4,494,153 (2019: $2,886,221). The year ended 30 June 2020 operating results are attributed to the
following:
•
Research and development costs of $5,537,528 (2019: $2,837,027)
•
Share based payments in respect of transaction options issued to employees and contractors of
$129,280 (2019: $231,143); and
•
Corporate and administration expenses of $1,251,581 (2019: $1,265,441).

Review of operations
Summary
Dimerix concluded two Phase 2 clinical trials during the period. DMX-200 for FSGS Phase 2a top line results
were announced on 29th July 2020 and DMX-200 for Diabetic Kidney Disease is expected to report top line
results in the first few weeks of September 2020. In November 2019, Dimerix met with the FDA to discuss
the remaining FSGS development plan through to market, which provided more clarity on the remaining
development of DMX-200 for FSGS through to market approval. Importantly, it also confirmed that the
proposed non-clinical safety package and specifications for the drug manufactured by Dimerix were
appropriate for market registration of DMX 200.

During the reporting period, Dimerix added a further 2 candidates to the development pipeline, DMX-200
for Acute Respiratory Distress Syndrome (ARDS) associated with COVID-19, and DMX-700 in Chronic
Obstructive Pulmonary Disease. These additions are based on compelling scientific rationale and both are
in commercially attractive, growing markets, with little or no current competition, and which will not only
diversify the risk of product failure but also diversify the sources of future revenue streams.

A summary of key announcements from the year is as follows:
•
DMX-200 Phase 2 Clinical Trial in FSGS Fully Recruited
•
First DMX-200 Patents to Grant in Europe And Canada
•
Bioshares Biotech Summit 2019 Presentation
•
Additional US Patent Covering DMX-200
•
DMX-200 Phase 2 Clinical Study in DKD Completes Recruitment

Dimerix HQ
425 Smith St, Fitzroy 3065
Victoria, Australia
T. 1300 813 321

13
•
Receipt of R&D Tax Incentive Rebate for FY19 Totaling $1.2 million
•
New Drug Pipeline Candidate DMX-700
•
Dimerix Awarded Second Innovation Connections Grant
•
Ausbiotech Conference Presentation
•
Bio-Europe Conference Presentation
•
Dimerix Holds Pre-IND Meeting on DMX-200 with FDA
•
AGM Presentation
•
CEO's Address to Shareholders
•
Dimerix Completes $2.5m Placement
•
DMX-200 Clinical Trial Update
•
Biotech Partnering Showcase Conference Presentation
•
DMX-200 Treatment Continued under TGA Special Access Scheme
•
Dimerix Appoints New DMX-200 Medical Advisory Board
•
Dimerix Clinical Studies Update
•
R&D Tax Incentive Facility of $1.02 million
•
NWR Virtual Health Conference Presentation
•
Global REMAP-CAP Platform Trial Protocol to Include DMX-200 for ARDS associated with COVID-19
•
Last Patient Completes Dosing in FSGS Phase 2 Clinical Study
•
Dimerix Completes $5.8m Placement

Key announcements immediately post period end:
•
DMX-700 Program for COPD Advances
•
Last Patient Completes Dosing in DKD Phase 2 Clinical Study
•
Positive Top-Line Results in FSGS Phase 2a Clinical Study

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 market.

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 Diabetic Kidney Disease and Focal Segmental
Glomerulosclerosis (FSGS), and Acute Respiratory Distress Syndrome (ARDS) in patients with COVID-19.
DMX-700 is currently in development for chronic Obstructive Pulmonary Disease (COPD).

Dimerix HQ
425 Smith St, Fitzroy 3065
Victoria, Australia
T. 1300 813 321

14
Dimerix has secured orphan drug designation for DMX-200 in FSGS in the US and Europe. 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 CCR2. It is administered as a capsule
twice daily to patients already on standard of care treatment (irbesartan). 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. The related compound known as propagermanium, at a different dose
and formulation, has 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 the DMX-200 Phase 2a trial that was completed in 2017, Dimerix entered into two Phase 2
clinical trials: the first in Diabetic Kidney Disease; and the second in Focal Segmental Glomerulosclerosis.

The two different and distinct studies investigated the AT1R and CCR2 Targets for Inflammatory Nephrosis
and were titled ACTION. IQVIA was appointed the contract research organisation (CRO), a key vendor to
facilitate the ACTION studies.

ACTION for FSGS – 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

Dimerix HQ
425 Smith St, Fitzroy 3065
Victoria, Australia
T. 1300 813 321

15
ACTION for DKD – Phase 2 trial investigated the effects of DMX-200 in patients with DKD with primary
endpoint being the change in 24hr albumin creatinine ratio (ACR) based on identified patient responses in
the Phase 2a study. Results are due in the first few weeks of September 2020.

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 even
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 any 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 for DMX-200 in both the US and Europe 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 are 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 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

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16
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 last patient received their last dose of DMX-200 in the FSGS Phase 2a study in the period, and results
were reported in July 2020. 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 DXM-
200 may be beneficial to patients suffering from FSGS. Looking at the top line grouped analysis, a mean
reduction in proteinuria of 29% from baseline compared to placebo was observed, which again is very
compelling.
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 in parallel to the Dimerix
program for patients with diabetic kidney disease.

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,

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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 are receiving a stable dose of irbesartan.

Diabetic Kidney Disease Study Design

The last diabetic kidney disease patient completed treatment in July 2020 and top line results are expected
in the first few weeks of September, which Dimerix hopes will further support the growing evidence of
DMX 200 treatment effect in kidney diseases.

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.

Acute Respiratory Distress Syndrome 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 is a
new virus in the same family of viruses as Severe Acute Respiratory Syndrome (SARS) and some types of
common cold.

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 Acute Respiratory Distress Syndrome (ARDS) which is a rapid, widespread
inflammation of the lungs that often leads to respiratory failure and death. In recent 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 ARDS, 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.

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

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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 the protocol
of the REMAP-CAP aimed at treating patients with ARDS as a result of COVID-19.

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.

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 team, and is simultaneously preparing DMX-200 at an
FDA approved global contract manufacturer. Historically, pandemics have lasted approximately 12-36
months, and some resurgences in the current pandemic are being seen right now. While COVID-19 is likely
to be around for a while yet, if DMX-200 does show some benefit in ARDS associated with COVID-19, it
may also show benefit in ARDS associated with other infections too, such as pneumonia caused by other
viruses such as influenza. Thus, this provides an opportunity that could extend well beyond the impact of
COVID-19.

The DMX-700 Program
Chronic Obstructive Pulmonary Disease (COPD)
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 it is also caused by exposure to indoor and
outdoor air pollution, occupational dusts and fumes and long-term asthma. COPD is the fourth-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 2016, the Global Burden of
Disease Study reported a prevalence of 251 million cases of COPD globally, and it was estimated that 3.17
million deaths were caused by the disease in 2015 (5% 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.

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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.

Dimerix has identified a heteromer association between two receptors that have been independently
implicated in the pathophysiology of COPD, however investigations into each single receptor have
provided disappointing results to date. Dimerix anticipates that this is due to the heteromer nature of the
receptor and has discovered that simultaneous inhibition of both receptors may significantly improve
efficacy. The receptor targets and DMX-700 will remain undisclosed pending additional data and patent
positioning.

Initial studies have been conducted, and Dimerix has completed a key step in securing ownership over
what it believes is an important new drug discovery by lodging a provisional patent applications. Dimerix
has progressed further proof of concept studies to perform the value-added verification in support of a
robust product development pathway and patent position. DMX-700 is a New Chemical Entity, however
the safety profile is well understood. As such, it is anticipated that Dimerix would initiate human clinical
studies in less than 2 years.

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 four different provisional patent applications for the use of any CCR2 inhibitor in ARDS. The new
provisional 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 2020, and if granted,
would expire post 2040.

Dimerix has also lodged a provisional patent application for DMX-700. The new provisional patent
application has a priority date of 26 September 2019 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.

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Commercial Manufacturer
The development of Dimerix manufacturing capabilities has significantly progressed throughout the
period. Dimerix established the scalable manufacturing process and the development of validated
analytical methods for pharmaceutical grade DMX-200, and completed a demonstration batch
manufacture, which is an essential component of the product development program and 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 $7,785,706, and expects to receive a Research and
Development tax incentive refund of $2,338,254 following 30 June 2020, further boosting capital
resources.

Financial position

30 June 2020
30 June 2019
Cash and cash equivalents
7,785,706
3,563,286
Net assets / total equity
7,759,264
4,202,877
Contributed equity
28,344,114
20,474,930
Accumulated losses
(21,435,833)
(16,941,680)

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 2020.

Events after the reporting period

•
DMX-700 Program for COPD Advances
On 6th July 2020, Dimerix announced an update to the DMX-700 program for Chronic Obstructive
Pulmonary Disease (COPD). The DMX-700 program has made further advances in understanding the
mechanism by which the, as yet undisclosed, receptors may be contributing to the lung damage
associated with COPD. Specifically, the new data indicates that due to the functional interaction of the
receptors identified using Dimerix’ proprietary Receptor-HIT discovery tool, there is an increased
presence and activation of the receptor complex at the cell surface which is expected to result in an
increased pro-inflammatory effect.

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•
Last Patient Completes Dosing in DKD Phase 2 Clinical Study
On 24th July 2020, Dimerix announced that the last patient in Phase 2 clinical study of DMX-200 in
diabetic kidney disease patients had received their last dose. The study is expected to report results
within the first few weeks of September.

•
Positive Top-Line Results in FSGS Phase 2a Clinical Study
On 29th July 2020, Dimerix announced positive top-line results from the Phase 2a ACTION study of
DMX-200 for the treatment of focal segmental glomerulosclerosis (FSGS), a rare kidney disorder
without an approved pharmacologic treatment that often leads to end-stage kidney failure. All primary
and secondary endpoints were met in the study and DMX-200 was found to be generally safe and well-
tolerated in FSGS patients. 86% of patients demonstrated a reduction of proteinuria with DMX-200
versus placebo, with an average of 29% reduction in proteinuria being observed across all patients
receiving DMX-200 compared to placebo. Furthermore, 29% of patients achieved a >40% reduction in
proteinuria on DMX-200 compared to placebo.

Future developments, prospects and business strategies
Dimerix continues with its two renal programs, with the diabetic kidney disease study results expected in
the first few weeks of September, and additional analyses of the FSGS data becoming be available in due
course, following evaluation by statisticians. In parallel, and following the positive meeting held with the
FDA in November 2019, Dimerix continues to undertake planning for its proposed global Phase 3 pivotal
program in FSGS as well as continue those partnering discussions initiated in 2019.

Dimerix continues to engage with REMAP-CAP on the global ARDS associated with COVID-19 study, as well
as 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. A commercial scale
DMX-200 GMP batch manufacture was completed in October 2019, and further scale up activities are
planned.

Environmental issues
The Group’s operations are not subject to significant environmental regulation under the Australian
Commonwealth or State Law.

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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 2020. 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
Mr David Franklyn (resigned 11 October 2019)
Non-executive Director
Executive Employees
Position
Dr Nina Webster
Chief Executive Officer/Managing Director

With the exception of David Franklyn, 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 director and Chairman 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

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$250,000 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.

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:
(a) remuneration reflects the competitive market in which the Group operates;
(b) individual remuneration should be linked to performance criteria if appropriate; and
(c) executives should be rewarded for both financial and non-financial performance.

The total remuneration of executives consists of the following:
(a) salary – executives receive a fixed sum payable monthly in cash plus superannuation at 9.5% of salary;
(b) 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;
(c) other benefits – executives may, if deemed appropriate by the board, be provided with a fully
expensed mobile phone and other forms of remuneration; and
(d) 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 DMX-200 clinical trials as outlined in the directors’ report.

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Remuneration of key management personnel

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

Short-term employee benefits
Post-employment
benefits
Share-based
payment

Performance
related %
2019
Salary &
fees4
$
Bonus2
$
Other1
$
Superannuation
$
Options
$
Total
$

Non-executive
directors

Sonia Poli
45,000
-
-
-
-
45,000
0%
David Franklyn
41,096
-
-
3,904
-
45,000
0%
Hugh Alsop
41,096

-
3,904
-
45,000
0%
James Williams
93,2656

-
8,860
-
102,125
0%

Executive Employees
Nina Webster5 (CEO)

221,192

63,000

7,592

17,023

137,912

446,719

45%
Kathy Harrison3
(COO)
150,710
9,132
-
12,131
55,392
227,365
28%
Total
592,359
72,132
7,592
45,822
193,304
911,209

1 Other comprises annual leave expense for the year
2 Performance bonus for the year based on agreed criteria
3 Employment ceased 9 November 2018
4 Salary & fees includes Employment Termination Payment made to Kathy Harrison
5 Appointed 27 August 2018
6 James Williams entered into a three-month contract with the Company on 1 August 2017 for remuneration of $10,000 plus
superannuation. The contract was subsequently extended on 1 November 2017, 1 February 2018, 1 May 2018, 1 August 2018, 1
November 2018 and 1 February 2019 for an additional three months.

No key management personnel appointed during the year received a payment as part of his or her
consideration for agreeing to hold the position.

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25
Bonuses and share-based payments granted as compensation for the current financial year
Bonuses
Nina Webster achieved the milestones for a performance bonus of $91,170 during the financial year which
forms part of salary and fees.

Incentive share-based payments arrangements
No share options were issued to key management personnel as remuneration during the year (2019:
6,351,975). No share options were exercised by key management personnel during the year (2019: nil).

The total share-based payment expense amortised for the financial year ended 30 June 2020 in relation to
key management personnel was $113,769 (2019: $193,304).

125,000 options issued to David Franklyn on 19 October 2017 were cancelled on 11 October 2019.

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.

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
•
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).

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).

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Mr David Franklyn
On 23 November 2015 Mr David Franklyn 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).
On 11 October 2019 David Franklyn resigned as a Non-Executive Director.

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.

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

2020
Balance at
1 July

No.
Granted as
compensation

No.
Received on
exercise of
options/
performance
shares
No.
Net other
change

No.
Balance on
Resignation
Balance at
30 June

No.
James Williams1
2,252,355
-
-
-
-
2,252,355
Sonia Poli1
130,000
-
-
-
-
130,000
David Franklyn2
462,157
-
-
-
(462,157)
-
Hugh Alsop3
-
-
-
-
-
-
Nina Webster5
45,000
-
-
-
-
45,000

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2019
Balance at
1 July

No.
Granted as
compensation

No.
Received on
exercise of
options/
performance
shares
No.
Net other
change

No.
Balance on
Resignation
Balance at
30 June

No.
James Williams1
2,131,339
-
121,016
-
-
2,252,355
Sonia Poli1
130,000
-
-
-
-
130,000
David Franklyn2
448,359
-
13,798
-
-
462,157
Hugh Alsop3
-
-
-
-
-
-
Kathy Harrison4
Nina Webster5
333,333
-
-
-
-
-
-
45,000
(333,333)
-
-
45,000
1 Appointed 3 July 2015
2 Resigned 11 October 2019
3 Appointed 1 May 2017
4 Employment ceased 9 November 2018
5 Appointed 27 August 2018

Share options of Dimerix Limited

2020
Balance at
1 July

No.
Granted as
compensation

No.
Exercised
/ Cancelled

No.
Balance at
30 June

No.
Balance
vested at 30
June

No.
Vested and
exercisable

No.
Options
vested
during year

No.
James Williams
175,000
-
-
175,000
175,000
175,000
-
Sonia Poli
125,000
-
-
125,000
125,000
125,000
-
David Franklyn1
125,000
-
(125,000)
-
-
-
-
Hugh Alsop
125,000
-
-
125,000
125,000
125,000
-
Nina Webster
6,351,975
-
-
6,351,975
3,175,988
3,175,988
-
1 125,000 options previously issued to David Franklyn were cancelled on 12 November 2019.

2019
Balance at
1 July

No.
Granted as
compensation

No.
Exercised
/ Cancelled

No.
Balance at
30 June

No.
Balance
vested at 30
June
No.
Vested and
exercisable

No.
Options
vested
during year
No.
James Williams
175,000
-
-
175,000
175,000
175,000
-
Sonia Poli
125,000
-
-
125,000
125,000
125,000
-
David Franklyn1
125,000
-
-
125,000
125,000
125,000
-
Hugh Alsop
125,000
-
-
125,000
125,000
125,000
-
Kathy Harrison
2,329,948
-
(2,329,948)1
-
-
-
-
Nina Webster
-
6,351,975
-
6,351,975
-
-
-
1 2,329,948 options previously issued to Kathy Harrison (500,000 options issued in 2017 financial year & 1,829,948 options issued
in 2018 financial year) were cancelled. 1,829,948 options were cancelled on 14 January 2019 and 500,000 options were cancelled
on 29 January 2019.

Dimerix HQ
425 Smith St, Fitzroy 3065
Victoria, Australia
T. 1300 813 321
28
Key management personnel equity holdings
Performance shares of Dimerix Limited
2020
Balance at
1 July
No.
Granted as
compensation
No.
Net other
change
No.
Conversion to
fully paid
ordinary shares
No.
Balance on
Resignation
Balance at
30 June
No.
James Williams
-
-
-
-
-
-
Sonia Poli
-
-
-
-
-
-
David Franklyn
-
-
-
-
-
-
Hugh Alsop
-
-
-
-
-
-
Nina Webster
-
-
-
-
-
-
2019
Balance at
1 July
No.
Granted as
compensation
No.
Net other
change
No.
Conversion to
fully paid
ordinary shares
No.
Balance on
Resignation
Balance at
30 June
No.
James Williams
121,016
-
-
(121,016)
-
-
Sonia Poli
-
-
-
-
-
-
David Franklyn
13,798
-
-
(13,798)
-
-
Hugh Alsop
-
-
-
-
-
-
Kathy Harrison
-
-
-
-
-
-
This directors’ report, incorporating the remuneration report, is signed in accordance with a resolution
made pursuant to s.298(2) of the Corporations Act 2001.
On behalf of the directors
Dr James Williams
Chairman
Melbourne, 27 August 2020

Chartered Accountants and Consultants

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
Stantons International Audit and Consulting Pty Ltd
trading as
Chartered Accountants and Consultants
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 subsidiaries (the Group),
which comprises the consolidated statement of financial position as at 30 June 2020, 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 2020 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.
30

Key Audit Matters
How the matter was addressed in the audit
Share based payments – share options
The Group awarded share-based payments in the
form of share options. The awards vest subject to
the achievement of certain vesting conditions.
The Group used the Black-Scholes model in
valuing the share-based awards, based on the
vesting conditions attached to each tranche.
The Group has performed calculations to record
the related share-based payment movement of
$181,356 in reserves as at 30 June 2020 as
disclosed in notes 19 and 21 of the consolidated
financial statements.
Due to the complex nature of transaction and
estimates used in determining the valuation of the
share-based payment arrangement and vesting
expense, we consider the Group’s calculation of
the share-based payment expense to be a key
audit matter.
In determining the fair value of the awards and
related expense, the Group used assumptions in
respect of future market and economic conditions.
Inter alia, our procedures included the following:
i.
Assessing the assumptions used in the
Group’s valuation of share options being the
share price of the underlying equity, interest
rate, volatility, dividend yield, time to maturity
(expected life) and grant date;
ii.
Assessing the fair value of the calculation
through
re-performance
using
the
Black
Scholes model; and
iii. Assessing the accuracy of the share- based
payments expense and the adequacy of
disclosures made by the Group in the financial
report.
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 2020 but does not include the financial
report and our auditor's report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report or our
knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we
have performed, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true
and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for
such internal control as the directors determine is necessary to enable the preparation of the financial
report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.
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.
31

Auditor's Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes
our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit
conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of this financial report.
As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement
and maintain professional scepticism throughout the audit. An audit involves performing procedures to
obtain audit evidence about the amounts and disclosures in the financial report.
The procedures selected depend on the auditor's judgement, including the assessment of the risks of
material misstatement of the financial report, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entity's preparation of the financial
report that gives a true and fair view in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal
control.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness
of accounting estimates made by the Directors, as well as evaluating the overall presentation of the
financial report.
We conclude on the appropriateness of the Directors' use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions
that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditor's report to the related
disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However,
future events or conditions may cause the Group to cease to continue as a going concern.
We evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and events in a
manner that achieves fair presentation.
We obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the financial report. We are responsible for
the direction, supervision and performance of the Group audit. We remain solely responsible for our audit
opinion.
We communicate with the Directors regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in Internal control that we identify
during our audit.
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.
32

Report on the Remuneration Report
We have audited the Remuneration Report included in pages 22 to 28 of the directors’ report for the year
ended 30 June 2020. 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 2020 complies with
section 300A of the Corporations Act 2001.
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
(Trading as Stantons International)
(An Authorised Audit Company)
Martin Michalik
Director
West Perth, Western Australia
27 August 2020
33

Dimerix HQ
425 Smith St, Fitzroy 3065
Victoria, Australia
T. 1300 813 321
34
Directors’ declaration
The directors declare that:
(a)
in the directors’ opinion, there are reasonable grounds to believe that the Group will be able
to pay its debts as and when they become due and payable;
(b)
in the directors’ opinion, the attached financial statements are in compliance with
International Financial Reporting Standards, as stated in note 3 to the financial statements;
(c)
in the directors’ opinion, the attached financial statements and notes thereto are in
accordance with the Corporations Act 2001, including compliance with accounting standards
and giving a true and fair view of the financial position and performance of the Consolidated
entity; and
(d)
the directors have been given the declarations required by s.295A of the Corporations Act
2001.
Signed in accordance with a resolution of the directors made pursuant to s.295(5) of the Corporations Act
2001.
On behalf of the directors
Dr James Williams
Chairman
27 August 2020
Melbourne, Victoria

Dimerix HQ
425 Smith St, Fitzroy 3065
Victoria, Australia
T. 1300 813 321

35
Consolidated statement of profit or loss and other
comprehensive income for the year ended 30 June 2020

Note
30 June 2020
$
30 June 2019
$
Continuing operations

Revenue
6
2,700
18,108
Other income
7
2,421,536
1,429,282
Research and development expenses

(5,537,528)
(2,837,027)
Corporate administration expenses
8
(1,251,581)
(1,265,441)
Share based payments
21
(129,280)
(231,143)
Loss before income tax

(4,494,153)
(2,886,221)

Income tax expense
9
-
-
Loss for the year from continuing operations
(4,494,153)
(2,886,221)

Other comprehensive income, net of income tax

Items that will not be reclassified subsequently to profit or
loss

-
-
Items that may be reclassified subsequently to profit or
loss

-
-
Other comprehensive income for the year, net of income
tax

-
-
Total comprehensive loss for the year

(4,494,153)
(2,886,221)
Loss and total comprehensive loss attributable to:

Owners of Dimerix Limited

(4,494,153)
(2,886,221)

Loss per share:

Basic and diluted (cents per share)
10
(2.62)
(1.82)

Notes to the consolidated financial statements are included on pages 39 to 70.

Dimerix HQ
425 Smith St, Fitzroy 3065
Victoria, Australia
T. 1300 813 321

36
Consolidated statement of financial position as at 30 June 2020

Note

30 June 2020
$
30 Jun 2019
$
Current assets

Cash and cash equivalents

7,785,706
3,563,286
Trade, other receivables and prepayments

2,571,720
1,374,739
Right of use asset

30,353
-
Total current assets

10,387,779
4,938,025

Non-current assets

Property, plant and equipment

1,232
2,620
Total non-current assets

1,232
2,620
Total assets

10,389,011
4,940,645

Current liabilities

Trade and other payables

1,505,457
719,379
Borrowing

1,063,015
-
Provisions

29,958
18,389
Lease liability

31,317
-
Total current liabilities

2,629,747
737,768
Total liabilities

2,629,747
737,768

Net assets

7,759,264
4,202,877

Equity

Issued capital

28,344,114
20,474,930
Reserves

850,983
669,627
Accumulated losses

(21,435,833)
(16,941,680)

7,759,264
4,202,877

Notes to the consolidated financial statements are included on pages 39 to 70.

Dimerix HQ
425 Smith St, Fitzroy 3065
Victoria, Australia
T. 1300 813 321

37
Consolidated statement of changes in equity for the year ended
30 June 2020

Issued capital
Reserves
Accumulated
losses
Total

$
$
$
$
Balance at 1 July 2018
20,287,429
625,985
(14,055,459)
6,857,955
Loss for the year
-
-
(2,886,221)
(2,886,221)
Other comprehensive income
-
-
-
-
Total comprehensive loss for the year
-
-
(2,886,221)
(2,886,221)
Conversion of performance C shares
187,501
(187,501)
-
-
Share issue costs
-
-
-
-
Recognition of share based payments
-
231,143
-
231,143
Balance at 30 June 2019
20,474,930
669,627
(16,941,680)
4,202,877

Balance at 1 July 2019
20,474,930
669,627
(16,941,680)
4,202,877
Loss for the year
-
-
(4,494,153)
(4,494,153)
Other comprehensive income
-
-
-
-
Total comprehensive loss for the year
-
-
(4,494,153)
(4,494,153)
Issue of ordinary shares
8,340,129
-
-
8,340,129
Share issue costs
(470,945)
-
-
(470,945)
Recognition of share based payments
-
181,356
-
181,356
Balance at 30 June 2020
28,344,114
850,983
(21,435,833)
7,759,264

Notes to the consolidated financial statements are included on pages 39 to 70.

Dimerix HQ
425 Smith St, Fitzroy 3065
Victoria, Australia
T. 1300 813 321

38
Consolidated statement of cash flows for the year ended 30
June 2020

Note

30 June 2020
$
30 June 2019
$
Cash flows from operating activities

Receipt of Research and Development tax refund

1,180,759
1,073,628
Other income

83,283
-
Payments to suppliers and employees

(5,988,222)
(3,842,537)
Interest received

2,700
18,107
Net cash (used in) operating activities

24
(4,721,480)
(2,750,802)

Cash flows from investing activities

Payments for property, plant and equipment

13
-
(6,906)
Net cash (used in) investing activities

-
(6,906)

Cash flows from financing activities

Proceeds from issue of shares

8,340,129
-
Payment for share issue costs

(441,406)
-
Proceeds from borrowings

1,024,128
-
Repayment of lease liability

(11,759)
-
Net cash provided by financing activities

8,911,092
-

Net increase/(decrease) in cash and cash equivalents

4,189,612
(2,757,708)

Cash and cash equivalents at the beginning of the year

3,563,286
6,284,322
Effects of exchange rate changes on cash and cash
equivalents

32,808
36,672
Cash and cash equivalents at the end of the year
24
7,785,706
3,563,286

Notes to the consolidated financial statements are included on pages 39 to 70.

Dimerix HQ
425 Smith St, Fitzroy 3065
Victoria, Australia
T. 1300 813 321

39
Notes to the financial statements for the year ended
30 June 2020

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.

2.
New and Revised Accounting Standards Adopted by the Group
The Group has considered the implications of new and amended Accounting Standards which
have become applicable for the current financial reporting period. The Group had to change
its accounting policies and make adjustments as a result of adopting the following Standard:

- AASB 16: Leases

The impact of the adoption of this Standard and the respective accounting policies is disclosed
in Note 2.1 below.

2.1
Changes in Accounting Policies
This note describes the nature and effect of the adoption of AASB 16: Leases on the Group’s
financial statements and discloses the new accounting policies that have been applied from
1 July 2019, where they are different to those applied in prior periods.

As a result of the changes in Group’s accounting policies, prior year financial statements were
required to be restated. However, the Group has adopted AASB 16: Leases using modified
retrospective approach with the cumulative effect of initially applying AASB 16 recognised as
1 July 2019.

2.1.1
Leases
The Group as lessee
At inception of a contract the Group assesses if the contract contains or is a lease. If there is
a lease present, a right-of-use asset and a corresponding liability are recognised by the Group
where the Group is a lessee. However, all contracts that are classified as short-term leases
(i.e. leases with a remaining lease term of 12 months or less) and leases of low-value assets
are recognised as an operating expense on a straight-line basis over the term of the lease.

Initially, the lease liability is measured at the present value of the lease payments still to be
paid at the commencement date. The lease payments are discounted at the interest rate

Dimerix HQ
425 Smith St, Fitzroy 3065
Victoria, Australia
T. 1300 813 321

40
implicit in the lease. If this rate cannot be readily determined, the Group uses incremental
borrowing rate.

Lease payments included in the measurement of the lease liability are as follows;
- fixed lease payments less any lease incentives;
- variable lease payments that depend on index or rate, initially measured using the index
or rate at the commencement date;
- the amount expected to be payable by the lessee under residual value guarantees;
- the exercise price of purchase options if the lessee is reasonably certain to exercise the
options;
- lease payments under extension options, if the lessee is reasonably certain to exercise
the options; and
- payments of penalties for terminating the lease, if the lease term reflects the exercise of
options to terminate the lease.

The right-of-use asses comprise the initial measurement of the corresponding lease liability
less any lease payments made at or before the commencement date and any initial direct
costs. The subsequent measurement of the right-of-use assets is at cost less accumulated
depreciation and impairment losses.

Right-of-use assets are depreciated over the lease term or useful life of the underlying asset,
whichever is the shorter.

Where a lease transfers ownership of the underlying asset or the costs of the right-of-use
asset reflects that the Group anticipates to exercise a purchase option, the specific asset is
depreciated over the useful life of the underlying asset.

Initial Application of AASB 16: Leases
The Group has adopted AASB 16: Leases retrospectively with the cumulative effect of initially
applying AASB 16 recognised as 1 July 2019. In accordance with AASB 16, the comparatives
for the 2018 reporting period have not been restated.

The Group has recognised a lease liability and right-of-use asset for all leases (with exception
of short-term and low value leases) recognised as operating leases under AASB 117: Leases
where the Group is a lessee.

Lease liabilities are measured at the present value of the remaining lease payments. The
Group’s incremental borrowing rate as at the commencement of the lease was used to
discount the lease payments.

The right-of-use assets were measured at their carrying values as if AASB 16 Leases had been
applied since the commencement date but discounted using the Group’s incremental

Dimerix HQ
425 Smith St, Fitzroy 3065
Victoria, Australia
T. 1300 813 321

41
borrowing rate per lease term. The right-of-use assets have been recognised in the statement
of financial position upon the commencement of the lease agreements.

The following practical expedients have been used by the Group in applying AASB 16 Leases
for the first time:
- Leases that have remaining lease term of less than 12 months as at 1 July 2019 have been
accounted for in the same way as short-term lease.
- The use of hindsight to determine lease terms or contracts that have options to extend
or terminate.

The Group’s incremental borrowing rate applied to the lease liabilities was 5.03%.

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 entity in the current or future reporting periods and on foreseeable
future transactions.

3.
Significant accounting policies

3.1
Statement of compliance
These financial statements are general purpose financial statements which have been
prepared in accordance with the Corporations Act 2001, Accounting Standards and
Interpretations and comply with other requirements of the law.

The financial statements comprise the 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 financial statements were authorised for issue by the directors on 27 August 2020.

3.2
Basis of preparation
The 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.

Dimerix HQ
425 Smith St, Fitzroy 3065
Victoria, Australia
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42
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 117 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:
•
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.

3.3
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

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•
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.

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.

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3.4
Going concern basis
The 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 2020 the Group incurred a loss after tax of $4,494,153 (2019:
$2,886,221) and a net cash outflow from operations of $4,721,480 (2019: $2,750,802). At 30
June 2020, the Group had current assets of $10,387,779 (2019: $4,938,025), current liabilities
of $2,629,747 (2019: $737,768) and current cash holding was $7,785,706 (2019: $3,563,286).
Commitment expenditure is disclosed in Note 25.

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 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.

3.5
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 3.3 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.

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3.6
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.

Research and Development Incentive
These are accounted on an accrual basis once it is probable that it will be received.

3.7
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.

3.8
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.

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3.9
Employee benefits
Short-term and long-term employee benefits
A liability is recognised for benefits accrued to employees in respect of wages and salaries
and annual leave when it is probable that settlement will be required and they are capable of
being measured reliably.

Liabilities recognised in respect of short-term employee benefits are measured at their
nominal values using the remuneration rate expected to apply at the time of settlement.

Liabilities recognised in respect of long-term employee benefits are measured as the present
value of the estimated future cash outflows to be made by the Group in respect of services
provided by employees up to reporting date.

3.10
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
21.

The fair value determined at the grant date of the equity-settled share-based payments is
expensed on a straight-line basis over the vesting period, based on the Group’s estimate of
equity instruments that will eventually vest, with a corresponding increase in equity. At the
end of each reporting period, the Group revises its estimate of the number of equity
instruments expected to vest. The impact of the revision of the original estimates, if any, is
recognised in profit or loss such that the cumulative expense reflects the revised estimate,
with a corresponding adjustment to the equity-settled employee benefits reserve.

Equity-settled share-based payment transactions with parties other than employees are
measured at the fair 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.

3.11
Taxation

3.11.1
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from
profit before tax as reported in the statement of profit or loss and other comprehensive

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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.

3.11.2
Deferred tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets
and liabilities in the consolidated financial statements and the corresponding tax bases used
in the computation of taxable profit. Deferred tax liabilities are generally recognised for all
taxable temporary differences. Deferred tax assets are generally recognised for all deductible
temporary differences to the extent that it is probable that taxable profits will be available
against which those deductible temporary differences can be utilised. Such deferred tax
assets and liabilities are not recognised if the temporary difference arises 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.

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3.11.3
Current and deferred tax for the year
Current and deferred tax are recognised in profit or loss, except when they relate to items
that are recognised in other comprehensive income or directly in equity, in which case the
current and deferred tax are also recognised in other comprehensive income or directly in
equity, respectively.

Where current tax or deferred tax arises from the initial accounting for a business
combination, the tax effect is included in the accounting for the business combination.

3.12
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.

3.13
Intangible assets

3.13.1
Intangible assets acquired in a business combination
Intangible assets acquired in a business combination and recognised separately from goodwill
are initially recognised at their fair value at the acquisition date (which is regarded as their
cost).

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.

3.13.2
Derecognition of intangible assets
An intangible asset is derecognised on disposal, or when no future economic benefits are
expected from use or disposal. Gains or losses arising from derecognition of an intangible
asset, measured as the difference between the net disposal proceeds and the carrying
amount of the asset are recognised in profit or loss when the asset is derecognised.

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3.14
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

3.15
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.

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.

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3.16
Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as
a result of a past event, it is probable that the Group will be required to settle the obligation,
and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to
settle the present obligation at the end of the reporting period, taking into account the risks
and uncertainties surrounding the obligation. When a provision is measured using the cash
flows estimated to settle the present obligation, its carrying amount is the present value of
those cash flows (where the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be
recovered from a third party, a receivable is recognised as an asset if it is virtually certain that
reimbursement will be received and the amount of the receivable can be measured reliably.

3.17
Financial instruments

3.17.1
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.

3.17.2
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).

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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):

•
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.

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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.

3.17.3
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.

3.18
Goods and services tax
Revenues, expenses and assets are recognised net of the amount of goods and services tax
(GST), except:
(i) where the amount of GST incurred is not recoverable from the taxation authority, it
is recognised as part of the cost of acquisition of an asset or as part of an item of
expense; or
(ii) for receivables and payables which are recognised inclusive of GST.

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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.

4.
Critical accounting judgements and key sources of estimation uncertainty
In the application of the Group’s accounting policies, which are described in note 3, the
directors of the 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.

4.1
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.

5.
Segment information
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 statement of financial performance and statement
of financial position represents the information for the business segment.

6.
Revenue

2020
2019

$
$
Interest received
2,700
18,108

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7.
Other income

2020
2019

$
$
Research and development tax incentive
2,338,254
1,429,282*
Government incentives**
83,282
-

2,421,536
1,429,282

*$248,523 relates to an additional amount received as a result of a successful Overseas
Finding Application submitted to AusIndustry for eligible expenditure relating to the
2017/2018 financial year.

**$83,282 was received in relation to the Boosting Cashflow for Employers Incentive.

8.
Corporate administration expenses
Loss for the year has been arrived at after charging
the following items of expenses:
2020
$
2019
$
Company secretary fees
24,000
20,449
Depreciation and amortisation
13,529
4,677
Directors remuneration
198,502
232,536
Salary and wages
318,758
356,095
Rental expense
39,287
56,254
Legal and professional fees
10,655
7,285
Share registry fees
32,857
9,395
Insurance expenses
137,301
112,579
Other administration expenses
476,692
466,171

1,251,581
1,265,441

9.
Income taxes relating to continuing operations

9.1
Income tax recognised in profit and loss

2020
2019

$
$
Current tax benefit
(408,126)
(378,949)
Deferred tax expense
11,651
2,619
Tax losses not recognised
396,475
376,330
Total Tax expense/(benefit)
-
-

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The income tax expense for the year can be reconciled to the accounting loss as follows:

2020
2019

$
$
Loss before income tax from continuing operations
(4,494,153)
(2,886,221)

Income tax expense calculated at 27.5% (2019:27.5%)
(1,235,892)
(793,711)
Effect of items that are not assessable/deductible in
determining taxable loss:

Non-deductible expenses
1,505,341
810,434
Non-assessable income
(665,924)
(393,053)
Effect of unused tax losses not recognised as deferred
tax assets
396,475
376,330

-
-

The tax rate used for the reconciliation above is the corporate tax rate of 27.5% (2019:27.50%)
payable by Australian corporate entities on taxable profits under Australian tax law.

The Group has no franking credits available for recovery in future years.

9.2
Income tax recognised directly in equity

2020
2019

$
$
Current tax

Share issue costs
54,467
37,009
Deferred tax

Share issue costs deductible over 5 years
103,608
-

158,075
37,009

9.3
Unrecognised deferred tax assets

2020
2019

$
$
Unused tax losses for which no deferred tax assets
have been recognised

3,497,332

3,111,618
Temporary differences
288,362
185,425

All unused tax losses were incurred by Australian entities.

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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.

10.
Loss per share

2020
$
2019
$
Basic and diluted loss per share (cents per share)
(2.62)
(1.82)

10.1
Basic and diluted loss per share

The loss and weighted average number of ordinary shares used in the calculation of basic
earnings per share are as follows:

2020
2019

$
$
Loss for the year attributable to owners of the
Company
(4,494,153)
(2,886,221)

2020
2019

No.
No.
Weighted average number of ordinary shares for
the purposes of basic and diluted loss per share

171,518,834

158,613,995

There is no dilution of shares due to options therefore options are not included in the
calculation of diluted loss per share.

11.
Trade and other receivables and Prepayments

2020
2019

$
$
Other receivables
2,464,081
1,274,966
Prepayments
107,639
99,773

2,571,720
1,374,739

The other receivables at the reporting date include Research and Development tax incentive
of $2,338,254 (2019: $1,180,759). This amount is based on criteria of eligible expenditure set
out by AusIndustry. This amount has been pledged as security for a credit facility obtained
during the year (refer to note 15).

At the reporting date, none of the receivables are past due or impaired.

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12.
Right of use asset and lease liability

12.1
Right of use asset:

2020
2019

$
$
On initial recognition
42,494
-
Accumulated depreciation
(12,141)
-
Carrying Value at end of period
30,353
-

12.2
Lease liability:

2020
2019
Current
$
$
Property lease liability
31,317
-
Non-current

Property lease liability
-
-
Total lease liabilities
31,317
-

2020
2019

$
$
Depreciation – right of use asset
12,141
-
Interest expense – lease liability
583
-
Other leases classified as short-term or
low value asset
39,287
56,254
Lease payments during the year
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 leases
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 in accordance with AASB 16 adopted by the
Group on 1 July 2019 under the modified retrospective approach.

The right-of-use asset is measured at the amount equal to the lease liability at initial
recognition and then amortised over the life of the lease. The lease liability and ROU asset at
initial recognition is $42,494.

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The right-of-use asset is being depreciated over the lease term on a straight-line basis which
is approximately 14 months for the lease in place at 30 June 2020. Depreciation expense of
$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 $583
was included in corporate administration expense in the consolidated statement of profit or
loss and other comprehensive income.

13.
Property, plant and equipment

2020
2019
Carrying amounts of
$
$
Computer Equipment
1,232
2,620

Cost or Valuation

2020
2019

$
$
Balance at 1 July
17,713
10,807
Additions
-
6,906
Balance at 30 June
17,713
17,713

Accumulated depreciation

2020
2019

$
$
Balance at 1 July
15,093
10,416
Depreciation expense
1,388
4,677
Balance at 30 June
16,481
15,093

Net book value
1,232
2,620

14.
Trade and other payables

2020
2019

$
$
Trade creditors
1,148,946
416,821
Accruals and other payables
356,511
302,558

1,505,457
719,379

Dimerix HQ
425 Smith St, Fitzroy 3065
Victoria, Australia
T. 1300 813 321

Trade creditor payment terms are 30 days from end of month.
15.
Borrowing

2020
2019

$
$
Principal amount
1,024,128
-
Accrued interest
38,887
-

1,063,015
-

During the financial year, the Group entered into a credit facility agreement with Radium
Capital. The credit facility represents an amount payable to Radium Capital and is secured
by the Research and Development Tax Incentive receivable for the financial year ended 30
June 2020 (refer to note 11). Interest is payable at the rate of 15.00% per annum.
Subsequent to year end, the credit facility was repaid in full on 20 July 2020. The borrowing
is carried at amortised cost.

16.
Provisions

2020
2019

$
$
Provision for employee entitlements
29,958
18,389

17.
Subsidiary

18.
Issued capital

2020
2019

$
$
197,749,297 fully paid ordinary shares (2019:
158,799,437)
28,344,114
20,474,930

30 June 2020
30 June 2019

No.
$
No.
$
Balance at beginning of the balance
year
158,799,437
20,474,930
155,049,393
20,287,429
Issue of ordinary shares
38,949,860
8,340,129
-
-
Conversion of performance C shares
-
-
3,750,044
187,501
Capital raising costs
-
(470,945)
-
-
Balance at end of the end of the year
197,749,297
28,344,114
158,799,437
20,474,930

2020
2019
Dimerix Bioscience Pty Ltd
Australia
100%
100%

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60
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.
19.
Reserves

2020
2019

$
$
Performance shares reserve
-
-
Share based payment reserve
850,983
669,627
Total reserves at end of year
850,983
669,627

Performance share reserve
On acquisition of Dimerix Bioscience Pty Ltd, performance shares were issued to the Vendors
or their nominee.

Each performance share is convertible into 1 ordinary share.

On 18 July 2018, ethics approval was granted for DMX-200 Phase 2 clinical efficacy trials,
triggering Milestone C of the Class C Performance Shares which were issued to Dimerix
Bioscience shareholder vendors on 3 July 2015. As a result, 3,750,044 Class C Performance
Shares were converted to 3,750,044 ordinary shares. This allocation represents the last
tranche of Performance Shares associated with the 2015 transaction.

Following the conversion of Class C Performance Shares, in 2019 there are no further legacy
aspects to the July 2015 acquisition of Dimerix Biosciences Pty Ltd.

Performance share reserve movement

2020
$
2019
$
Balance at beginning of the balance year
-
187,501
Conversion to ordinary shares
-
(187,501)
Balance at end of the end of the balance year
-
-

Share- based payments Reserve

2020
$
2019
$
Balance at beginning of year
669,627
438,484
Arising on share-based payments
181,356*
231,143
Balance at end of year
850,983
669,627

* Included in share based payments 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

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61
expense for advisory options amortised for the financial year ended 30 June 2020 was
$22,530. The total share-based payment recognised as a cost of raising capital and deducted
from equity was $29,539.

Further information about share-based payments is set out in note 21.

20.
Financial instruments

20.1
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 2019.

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.

20.2
Categories of financial instruments

2020
2019
Financial assets
$
$
Cash and cash equivalents
7,785,706
3,563,286
Trade and other receivables
2,464,081
1,274,966

10,249,787
4,838,252

Financial liabilities

Trade and other payables
1,505,457
719,379
Borrowing
1,063,015
-
Lease liability
31,317
-

2,599,789
719,379

The fair value of the above financial instruments approximates their carrying values.

20.3
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.

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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.

20.4
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 20.5 below).

20.5
Interest rate risk management
The sensitivity analyses below have been determined based on the exposure to interest rates
for both derivatives and non-derivative instruments at the end on the reporting period.

If interest rates had been 100 basis points higher/lower and all other variables were held
constant, the Group’s loss for the year ended 30 June 2020 would increase/decrease by
$77,039 (2019: $27,902).

20.6
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.

Dimerix HQ
425 Smith St, Fitzroy 3065
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T. 1300 813 321

20.7
Foreign currency risk management
The Group undertakes transactions denominated in foreign currencies; consequently,
exposures to exchange rate fluctuations arise. At 30 June 2020, the Company has cash
denominated in US dollars (US$43,739 (2019: US$499,980)). The A$ equivalent at 30 June
2020 is $63,781 (2019: $711,887). A 5% movement in foreign exchange rates would increase
the Group’s loss before tax by approximately $1,534 (2019: ($2,774)).

20.8
Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the board of directors, which
has established an appropriate liquidity risk management framework for the management of
the Group’s short, medium and long-term funding and liquidity management requirements.

The Group manages liquidity by maintaining adequate banking facilities, by continuously
monitoring forecast and actual cash flows, and by matching the maturity profiles of financial
assets and liabilities.

Contractual cash flows

Carrying
Amount
Less than 1
month
1-3
months
3-12
months
1 year to
5 years
Total
contractual
cash flows

$
$
$
$
$
$
2020

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 liability
31,317
-
-
31,317
-
31,317

2,599,789
66,252
2,442,011
91,526
-
2,599,789
2019

Trade and other payables
719,379
525,406
139,761
54,212
-
719,379

21.
Share-based payments

2020
2019

Share-based payments
$
$

Arising on issuance of shares for no consideration
-
-

Arising on issuance of options
181,356
231,143

181,356
231,143

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21.1
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 2020. The
total share-based payment expense amortised for the financial year ended 30 June 2020 was
$129,280 (2019: $231,143).

21.2
Options issued to Advisors
1,000,000 options were granted to corporate advisors Taylor Collison. Under the corporate
advisor agreement, 1,000,000 unlisted options were issued on 9 August 2019 at an exercise
price of 18 cents per share, expiring three years from the date of issue. The vesting date of
the options is the issue date. The fair value of the options at grant date are determined using
a Black Scholes pricing method that takes into account the exercise price, the term of the
option, the share price at grant date and expected volatility of the underlying share, the
expected dividend yield and the risk-free interest rate for the term of the option. The
following table lists the inputs to the model used for valuation of the unlisted options:

Item

Inputs - $0.18
Volatility (%)

57.96%
Risk free interest rate (%)

1.0%
Expected life of option (years)

3.0
Exercise price per terms and conditions

$0.18
Underlying security price at grant date

$0.10
Expiry date

9 August 2022
Value per option

$0.023

750,000 options were granted to corporate advisors Westar Capital for their services in
connection with the placement announced on 03 December 2019. Under the placement
mandate, 750,000 unlisted options were issued on 9 December 2019 at an exercise price of
18 cents per share, expiring on 9 August 2022. The vesting date of the options is the issue
date. The fair value of the options at grant date are determined using a Black Scholes pricing
method that takes into account the exercise price, the term of the option, the share price at
grant date and expected volatility of the underlying share, the expected dividend yield and
the risk-free interest rate for the term of the option. The following table lists the inputs to
the model used for valuation of the unlisted options:

Dimerix HQ
425 Smith St, Fitzroy 3065
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T. 1300 813 321

Item

Inputs - $0.18
Volatility (%)

59.51%
Risk free interest rate (%)

0.75%
Expected life of option (years)

2.67
Exercise price per terms and conditions

$0.18
Underlying security price at grant date

$0.135
Expiry date

9 August 2022
Value per option

$0.039

The deemed fair value of options granted to advisors during the financial year ended 30 June
2020 is $52,069.

The total share-based payment expense for options granted to Advisors amortised for the
financial year ended 30 June 2020 was $22,530. The total share-based payment recognised
as a cost of raising capital brought directly to the statement of changes in equity was $29,539.

21.3
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
425,000
19 October 2017
20 April 2021
$0.125
20 February 2018
$0.40
90,515
17 November 2017
13 November 2020
$0.108
17 November 2017
$0.286
500,000
24 September 2018
24 September 2020
$0.022
24 September 2018
$0.25
1,500,000
24 September 2018
24 September 2020
$0.009
24 September 2018
$0.50
2,117,325
30 October 2018
30 October 2023
$0.051
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
$0.18
2,117,325
30 October 2018
30 October 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

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2,117,325
30 October 2018
30 October 2023
$0.036
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
$0.36
625,0001
15 March 2019
31 January 2024
$0.026
1/2 vest on 30 September 2019
1/2 expected to vest on 31 August
2020
$0.18
625,0001
15 March 2019
31 January 2024
$0.018
1/2 vest on 30 September 2019
1/2 expected to vest on 31 August
2020
$0.27
1,000,000
09 August 2019
09 August 2022
$0.023
09 August 2019
$0.18
750,000
09 December 2019
09 August 2022
$0.039
09 December 2019
$0.18
1.
250,000 options from each tranche lapsed during the year upon termination of an employment contract. A resolution was
passed by the Board of Directors on 18 December 2019 to postpone the forfeiture event to 6 months after Phase 2 data read-
out (inclusive of FSGS and DKD studies).

Other than noted above, there has been no alteration of the terms and conditions of the
above share-based payment arrangements since the grant date.

125,000 options were cancelled on 12 November 2019 and 500,000 options expired 31 March
2020. A further 500,000 options lapsed during the year upon termination of an employment
contract. A resolution was passed by the Board of Directors on 18 December 2019 to
postpone the forfeiture event to 6 months after Phase 2 data read-out (inclusive of FSGS and
DKD studies).

21.4
Fair value of share options granted in the year
The deemed fair value of options granted during the year is $52,069 (2019: $325,594).

21.5
Performance shares on issue
Following the conversion of Class C Performance Shares on 18 July 2018, there are no further
legacy aspects to the July 2015 acquisition of Dimerix Biosciences Pty Ltd.

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21.6
Movements in share options during the year
The following reconciles the share options outstanding at the beginning and end of the year:

2020
2019

Number of
options
Weighted
average
exercise price

Number of
options
Weighted
average
exercise
price

No.
$
No.
$
Balance at beginning of the
year
10,742,490
0.309
3,470,463
0.397
Granted during the year
1,750,000
0.180
9,601,975
0.299
Cancelled during the year
(125,000)
0.400
(2,329,948)
0.400
Exercised during the year
-
-
-
-
Expired during the year
(500,000)
0.400
-
-
Balance at end of year
11,867,490
0.285
10,742,490
0.309
Exercisable at end of year
8,066,504
0.296
3,140,515
0.421

21.7
Share options exercises during the year
There were no share options exercised during the year (2019: nil).

21.8
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 $0.2850 and a weighted average remaining contractual life of 929 days (2019: 1,266 days).

22.
Key management personnel
The aggregate compensation made to directors and other members of key management
personnel of the Group is set out below:

2020
2019

$
$
Short-term employee benefits
574,865
672,083
Post-employment benefits
32,954
45,822
Share-based payments
113,769
193,304

721,588
911,209

23.
Related party transactions

23.1
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.

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For details of disclosures relating to key management personnel, refer to the remuneration
report contained in the directors’ report and note 22.

23.2
Other related party transactions
All transactions between the Group and related parties are on an arms-length basis.

24.
Cash and cash equivalents
For the purposes of the 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 statement of cash flows can be reconciled to the
related items in the statement of financial position as follows:

2019

2020
2019

$
$
Cash and bank balances
7,785,706
3,563,286

$Reconciliation of loss for the year to net cash flows from operating activities

2020
2019

$
$

Cash flow from operating activities

Loss for the year
(4,494,153)
(2,886,221)

Adjustments for:

Depreciation and amortisation
13,529
4,677

Share based payments
151,811
231,143

Accrued interest on borrowings
39,470

Effects of exchange rate changes on cash and cash
equivalents
(32,808)
(36,672)

Movements in working capital

(Increase)/decrease in other receivables
(1,189,115)
(371,471)

(Increase) in prepayments
(7,866)
(23,282)

Increase in trade and other payables
786,083
354,936

Increase/(decrease) in provisions
11,569
(23,912)

Net cash outflows from operating activities
(4,721,480)
(2,750,802)

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25.
Commitments and contingencies
Commitments for expenditure
The Group has entered into a number of agreements related to research and development
activities. As at 30 June 2020, under these agreements, the Group is committed to making
payments over future periods, as follows:

2020

During the period 1 July 2020 – 30 June 2021
4,700,100

During the period 1 July 2021 – 30 June 2022
36,679

During the period 1 July 2022 – 30 June 2023
-

4,736,779

Where commitments are denominated in foreign currencies, the amounts have been
converted to Australian dollars based on exchange rates prevailing as at 30 June 2020.

26.
Remuneration of auditors

Auditor of the parent entity

2020
2019

$
$

Audit or review of the financial statements
36,952
34,551

Other non-audit services
-
-

36,952
34,551

The auditors of Dimerix Limited are Stantons International Audit and Consulting Pty Ltd.

27.
Events after the reporting period
On 20 July 2020 the Group re-paid in full the R&D advance loan.

Other than the above, there has not been any matter or circumstance that has arisen since
the end of the financial year that has significantly affected or may significantly affect the
operations of the Group, the results of these operations , or the state of affairs of the Group
in future financial years.

28.
Parent entity information

The accounting policies of the parent entity, which have been applied in determining the
2020 and 2019 financial information shown below, are the same as those applied in the
financial statements. Refer to note 3 for a summary of significant accounting policies
relating to the Group.

Dimerix HQ
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Financial position of Dimerix Limited (Legal Parent)

2020
2019

$
$

Assets

Current assets
7,005,762
2,148,636

Non-current assets
-
-

Total assets
7,005,762
2,148,636

Liabilities

Current liabilities
1,266,948
157,186

Total liabilities
1,266,948
157,186

Net assets
5,738,814
1,991,450

Equity

Issued capital
58,287,025
50,417,841

Reserves
1,014,962
833,605

Accumulated losses
(53,563,173)
(49,259,996)

Total equity
5,738,814
1,991,450

Financial performance

Loss for the year
(4,303,177)
(3,650,642)

29.
Government Assistance

The Company entered into a research project agreement with University of Western
Australia (UWA) in October 2019. The project will utilise expertise at the Harry Perkins
Institute of Medical Research and UWA and will fund further research on molecular
pharmacology profiling. The project is partially funded via a matched contribution totalling
$50,000 from the Commonwealth Government under the Innovations Connections Grant
Scheme. The Government funding is provided directly to the UWA via a separate funding
agreement.

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Victoria, Australia
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ASX Additional Information as at 1st August 2020

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
129
31,928
0.02%
1,001 - 5,000
655
1,975,453
1.00%
5,001 - 10,000
412
3,228,467
1.63%
10,001 - 100,000
1,121
43,528,116
22.01%
100,001 - 9,999,999,999
313
148,985,333
75.34%
Totals
2,630
197,749,297
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 1st August 2020)
•
90,515 unlisted $0.286 expiring 13 November 2020 are held by one individual ESOP holder;
•
425,000 unlisted $0.40 expiring 20 April 2021 are held by three individual option holders. Unlisted
option holders holding more than 20% of these options are:
Hugh Alsop
125,000
Jampaso Pty Ltd
175,000
Sonia Poli
125,000
•
500,000 unlisted $0.25 expiring 24 September 2020 are held by three individual option holders.
Unlisted option holders holding more that 20% of these options are:
Mr. Rohan & Mrs. Fionnuala Edmondson 212,500
Ice Lake Investments Pty Ltd
212,500
Mintaka Nominees Pty Ltd
75,000
•
1,500,000 unlisted $0.50 expiring 24 September 2020 are held by three individual option holders.
Unlisted option holders holding more than 20% of these options are:
Mr. Rohan & Mrs. Fionnuala Edmondson 552,500
Ice Lake Investments Pty Ltd
552,500
Mintaka Nominees Pty Ltd
395,000
•
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;
•
625,000 unlisted $0.18 expiring 31 January 2024 are held by two individual ESOP holders;
•
625,000 unlisted $0.27 expiring 31 January 2024 are held by two individual ESOP holders.
•
1,000,000 unlisted $0.18 expiring 09 August 2022 are held by Taylor Nominees Pty Ltd

Dimerix HQ
425 Smith St, Fitzroy 3065
Victoria, Australia
T. 1300 813 321

72
•
750,000 unlisted $0.18 expiring 09 August 2022 are held by three 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 103 shareholdings held with less than a marketable parcel.

Substantial shareholders

Number of shares
% holding

Mr Peter Meurs
25,529,309
12.91%

Restricted securities
Nil

On-Market buy-back
There is no current on-market buy-back.

Twenty (20) largest shareholders of quoted equity securities
Position
Holder Name
Holding
% IC
1
MR PETER FLETCHER MEURS
25,529,309
12.91%
2
BAVARIA BAY PTY LTD
7,316,992
3.70%
3
YODAMBAO PTY LTD
6,312,603
3.19%
4
MRS GWEN MURRAY PFLEGER
2,105,988
1.07%
5
TOROHA PTY LTD
2,044,932
1.03%
6
TT NICHOLLS PTY LTD
1,816,667
0.92%
7
JAMPASO PTY LTD
1,778,742
0.90%
8
DR DAVID KENNETH PACKHAM
1,689,391
0.85%
9
CS FOURTH NOMINEES PTY LIMITED
1,598,641
0.81%
10
MR JAMES JOSEPH CAMILLERI
1,581,159
0.80%
11
DJEE SUPER PTY LTD
1,500,000
0.76%
11
UNDERLEX PTY LTD
1,500,000
0.76%
12
SOLEQUEST PTY LTD
1,412,302
0.71%
13
MR ROHAN CHARLES EDMONDSON & MRS FIONNUALA CATHERINE
EDMONDSON
1,300,000
0.66%
14
ALCAP PTY LIMITED
1,260,000
0.64%
15
RDP PATERSON SUPERFUND PTY LTD
1,230,000
0.62%
16
GOLDFIRE ENTERPRISES PTY LTD
1,174,657
0.59%
17
DR ROGER DOUGLAS PRYDE PATERSON
1,158,466
0.59%
18
AZALEA FAMILY HOLDINGS PTY LTD
1,150,000
0.58%
19
JGC SUPER PTY LTD
1,073,100
0.54%
20
STONERIDGE MINING PTY LTD
1,050,000
0.53%

Total
65,582,949
33.16%

Total issued capital - selected security class(es)
197,749,297
100.00%

Dimerix HQ
425 Smith St, Fitzroy 3065
Victoria, Australia
T. 1300 813 321