Annual Financial Report for the year ended
30 June 2023
Dimerix Limited and controlled entity
ABN 18 001 285 230
Dimerix Limited and controlled entity
Corporate directory
30 June 2023
1
Directors
Dr Sonia Maria Poli - Non-Executive Director
Mr Hugh Alsop - Non-Executive Director
Dr Nina Webster - CEO and Managing Director
Mr Clinton Snow - Non-Executive Director (Appointed 1 May 2023)
Dr James Williams (Resigned 23 December 2022)
Company secretary
Mr Hamish George
Registered office
425 Smith Street
Fitzroy
Victoria, 3065
Tel: 1300 813 321
Share register
Automic Registry Services
Level 5
191 St Georges Terrace
Perth, Western Australia, 6000
Auditor
Stantons
Level 2, 40 Kings Park Road
West Perth, Western Australia, 6005
Stock exchange listing
Dimerix Limited shares are listed on the Australian Securities Exchange
(ASX code: DXB)
Website
www.dimerix.com
Postal Address:
425 Smith Street
Fitzroy
Victoria, 3065
Dimerix Limited and controlled entity
Contents
30 June 2023
2
Financial Outcomes
3
2023 business achievements and 2024 planned milestones
4
Value Creation
5
CEO & Managing Director's report
6
Directors' report
8
Auditor's independence declaration
32
Independent auditor's report
33
Directors' declaration
38
Consolidated statement of profit or loss and other comprehensive income
39
Consolidated statement of financial position
40
Consolidated statement of changes in equity
41
Consolidated statement of cash flows
42
Notes to the consolidated financial statements
43
Shareholder information
75
Dimerix Limited and controlled entity
Financial Outcomes
30 June 2023
3
Financial outcomes
R&D
investment
increased
Operating
costs
reduced
Cash reserve
$7.9
million
Invested into
portfolio
$20.5
million
At a glance
Dimerix Limited and controlled entity
2023 business achievements and 2024 planned milestones
30 June 2023
4
2023 business achievements and 2024 planned milestones
Phase 3 interim
analysis set for
~15 March 2024)
Comprehensive
development
plan to ensure
commercial
ready product
API registration
batch
manufacture
complete
Strong progress
in recruitment,
managed by
experienced team
and global CRO
Confirmed plan
for inclusion of
children with FDA
and EMA
Positive
engagement with
FDA (US), EMA
(Europe), MHRA
(UK) and NMPA
(China)
❑ FSGS ACTION3 Phase 3 study Part 1 data outcome ~15 March 2024
❑ Progression of ACTION3 into Part 2
❑ FSGS ACTION3 Phase 3 study Part 2 recruitment and randomisation completed
❑ Additional Part 2 FSGS clinical sites/countries opened
Dimerix Limited and controlled entity
Value Creation
30 June 2022
5
Value Creation
Corporate Statement
Dimerix is a clinical-stage
biopharmaceutical company, with a
portfolio of drug candidates for
inflammatory diseases, including
kidney and respiratory diseases.
Our Values
Dimerix adopts, as part of its core culture, values
to which we all aspire aimed at driving the success
of the business.
•
Respect
•
Honesty
•
Commitment
•
Reliability
By adopting the company values, Dimerix
employees will ensure that they are delivering the
best possible outcomes to themselves, their fellow
workmates, investors, and business associates alike.
It is expected that everyone will, every day, in
every way, strive to meet these values as they
go about their day to day activities.
Our commitment to Quality
At Dimerix, we continue to stress the
importance of quality and reliability.
Quality underpins our business in
different ways, be it the medicines we
deliver to our clinical sites and patients,
the facilities and processes we have in
place to deliver on our plans, as well as
the quality of our people.
Our commitment to quality calls on us to
adhere to the highest ethical standards
and to maintain the trust of our
colleagues, stakeholders and ultimately
the patients we serve.
The
Dimerix
team
has
extensive
experience in the development and
commercialisation
of
pharmaceutical
products in the global marketplace.
Dimerix Limited and controlled entity
CEO & Managing Director's report
30 June 2023
6
CEO & Managing Director’s Report
Dear Shareholders,
The 2023 financial year was significant for Dimerix, one that saw our strategy
yield strong operational progress and results as we sharpened our focus on
our flagship program, being our ACTION3 Phase 3 clinical trial in focal
segmental glomerulosclerosis (FSGS) kidney disease.
The Dimerix strategy has created significant momentum over the last two
years, enabled by the strength and expertise of our team. Dimerix has never
been more productive and we maintained our focus on disciplined capital
allocation and program delivery. We are driven by our focus on developing life-changing medicines for people
with inflammatory diseases — often with limited or no therapeutic options. By keeping patients at the center
of all that we do, we’re striving to transform the lives of patients and their families by providing innovative
new medicines when there are few options available.
First interim outcome from ACTION3 Phase 3 Trial is Expected ~15 March 2024.
We have made significant progress since randomising the first patient for our pivotal Phase 3 ACTION3 trial
of DMX-200 in July 2023 and remain on track to report our first interim analysis outcome in ~15 March 2024
with patient enrollment continuing at geographically diverse sites.
DMX-200 is a chemokine receptor (CCR2) antagonist in late-stage clinical development for the treatment of
FSGS. The Phase 3 study, which is titled “Angiotensin II Type 1 Receptor (AT1R) & Chemokine Receptor 2
(CCR2) Targets for Inflammatory Nephrosis” – or ACTION3 for short, is a pivotal (Phase 3), multi-centre,
randomised, double-blind, placebo-controlled study of the efficacy and safety of DMX-200 in patients with
FSGS who are receiving a stable dose of an angiotensin II receptor blocker (ARB).
The single Phase 3 trial in FSGS patients has two interim analysis points built in that are designed to capture
evidence of proteinuria and kidney function (eGFR slope) during the trial, aimed at generating sufficient
evidence to support accelerated marketing approval. A successful outcome in the first interim analysis
outcome, expected on, or around, 15 March 2024, would see the Company announce a clinically significant
and statistical meaningful improvement in proteinuria in patients on DMX-200 versus placebo and that the
trial is continuing to Part 2.
Currently, we have randomized 72 patients (100%) of patients into Part 1 of the study, and importantly, have
done so with no safety concerns reported to date. We remain highly encouraged by the potential of DMX-
200 to offer a safe, well-tolerated and efficacious treatment option for patients with FSGS, which afflicts an
estimated 220,000 people worldwide.
Research and Development
We have continued to invest in the future of the business. Research and development expenditure across
our portfolio, rose to $20.5 from $14.4 million in the same period a year ago, driven by the global ACTION3
phase 3 clinical trial.
Nina Webster
CEO & Managing Director
Dimerix Limited and controlled entity
CEO & Managing Director's report
30 June 2023
7
In addition to progressing the ACTION3 Phase 3 study, our COPD pre-clinical asset completed a
pharmacokinetic (PK) and dose ranging pre-clinical study of DMX-700, using the same neutrophil elastase
lung injury model of COPD as used in the proof-of-concept study conducted in 2022. No notably drug-drug
interactions were observed and a twice daily (BID) formulation was identified to support future clinical
studies.
During the period, two investigator-led studies looking at DMX-200 in respiratory complications associated
with COVID-19 closed, with both reporting primary endpoint outcomes.
Our pipeline of products for patients with very few treatment options are commercially attractive, each with
unique intellectual property, and each of which diversifies the development risk providing the prospect of
delivering shareholders a potential for significant returns.
Sustainability and People
Last year, we assessed ESG matters that are material to our business. We have been operating within the
established framework that will drive our efforts to realise the opportunities we see, manage the risks to our
business and ensure we are meeting the expectations of stakeholders.
In recent years, the way that we live, and work has transitioned rapidly. I believe sustainability is not only
about reducing our workplace footprint, but also using innovative tools to encourage the wellbeing of
employees, encourage environmentally conscious decisions and promote long-term management that can
evolve working culture. At Dimerix, we promote a flexible working environment: by allowing employees to
work flexibly we can reduce emissions from commuting, as well as enable a better work-life balance,
improving employee wellbeing.
We are committed to nurturing a culture where diverse talent thrives. We understand that the long-term
success and sustainability of Dimerix depends on continuing to create an environment where top performers
of all backgrounds, genders, and ethnicities can contribute at their highest levels.
Outlook
The 2023 financial year brings another big step closer to our strategic goal. We are extremely pleased with
the progress we have made to date and remain optimistic about our near-term and long-term prospects as
we continue to focus on advancing our ACTION3 program that may have a profound impact on the lives of
those affected by FSGS.
We are actively pursuing strategic partnership opportunities for the FSGS asset, and we remain confident in
our ability to deliver shareholder value.
Every day, we strive to improve the lives of millions of people around the world with both respiratory and
renal conditions. I would like to thank all of our stakeholders, including employees, Directors, partners and
shareholders, who collectively enable us to put better health within reach, every day.
Dr Nina Webster
CEO & Managing Director
Dimerix Limited and controlled entity
Directors' report
30 June 2023
8
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 2023.
In order to comply with the provisions of the Corporations Act 2001, the directors report as follows:
Directors
The names and particulars of the directors of the Group during or since the end of the financial year are:
Dr Nina Webster
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). Nina is also a Non-Executive Director of Linear Clinical Research
Limited and SYNthesis BioVentures Pty Ltd.
Dr Sonia Poli
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 advisor for several late stage drug
development projects approaching market authorization. Sonia was formerly
Executive Manager at AC Immune, a Nasdaq listed company, and Chief Scientific
Officer at Minoryx and Addex Therapeutics and she has previously worked within
Swiss Stock Exchange listed companies Hoffman la Roche.
Mr Hugh Alsop
Non-Executive director, joined the Board on 1 May 2017. Hugh is an accomplished and
commercially focused executive with experience in international business
development, partnering, drug development and leadership of scientific teams. Hugh
is currently CEO of Kinoxis Therapeutics, a private company developing novel
therapeutics for substance use disorders and other neurological conditions. Prior to
Kinoxis, Hugh was CEO of venture-backed private company Hatchtech, and Director of
Business Development at Acrux Limited (ASX:ACR), where he was responsible for
several drug development programs for the international markets. Hugh is also a non-
Executive Director of private companies Servatus Ltd, Eflare Corporation Pty Ltd,
Avalyn Australia Pty Ltd, AnaptysBio Pty Ltd and Lassen Therapeutics 1 Pty Ltd.
Mr Clinton Snow*
Non-Executive Director, joined the Board in May 2023. Clinton Snow has 20 years
experience as a technology leader with a focus in engineering management, project
delivery, risk management, and assurance. Clinton is currently a Non-Executive
director for Icetana Ltd (ASX:ICE) PolyActiva Pty Ltd, as well as providing advisory
services to a family office with multiple Australian biotech investments..
Dr James Williams** Non-Executive Chairman, joined the Board on listing in July 2015 and was the CEO of
unlisted Dimerix Bioscience Pty Ltd between 2007 and 2009. James was a Founder and
Investment Director of Yuuwa Capital LP, a venture capital firm in Australia.
*appointed 1 May 2023
**Resigned 23 December 2022
Dimerix Limited and controlled entity
Directors' report
30 June 2023
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
Sonia Poli
330,000
341,038
Hugh Alsop
-
167,202
Nina Webster
282,500
6,598,642
Clinton Snow
-
-
Share options granted to directors and senior management
During the financial year, the following options were granted:
No. of options
Option Type
Grantee
750,000
Employee
Ashish Soman
187,500
Rights Issue
Nina Webster
125,002
Rights Issue
Sonia Poli
34,167
Sub-underwriter
Nina Webster
11,334
Sub-underwriter
Sonia Poli
Company secretary
Hamish George BCom, CA, GIA(Cert)
Mr George is a chartered accountant and has experience in providing financial
advice and CFO services to businesses ranging from small start-ups to large
established businesses with turnover of over $50 million. Hamish is a director at
Bio101 Financial Advisory Pty Ltd, a financial services firm providing outsourced
CFO, tax and company secretarial solutions to the life science sector. Hamish holds
a Bachelor of Commerce from the University of Melbourne, a Diploma in Financial
Planning from Kaplan Professional, a Masters Degree in Professional Accounting
from RMIT and a Certificate in Governance Practice from the Governance Institute
of Australia.
Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Unissued shares under option /performance shares
Details of unissued shares or interests under option as at the date of this report are:
Dimerix Limited and controlled entity
Directors' report
30 June 2023
10
Issuing entity
Number of
shares
under
option
Class of
shares
Exercise
price of
option
Expiry date of options
Dimerix Limited
2,117,325 Ordinary
0.180 30/10/2023
Dimerix Limited
2,117,325 Ordinary
0.270 30/10/2023
Dimerix Limited
2,117,325 Ordinary
0.360 30/10/2023
Dimerix Limited
375,000 Ordinary
0.180 31/01/2024
Dimerix Limited
375,000 Ordinary
0.270 31/01/2024
Dimerix Limited
69,099,137 Ordinary
0.400 30/07/2024
Dimerix Limited
1,000,000 Ordinary
0.400 03/12/2025
Dimerix Limited
750,000 Ordinary
0.400 21/07/2026
Dimerix Limited
57,431,508 Ordinary
0.154 30/06/2025
Dimerix Limited
34,408,088 Ordinary
0.126 31/03/2024
Dimerix Limited
3,850,000 Convertible notes
1.000 28/12/2024
During the year 89,083,346 options were issued and 750,000 options lapsed.
The holders of these options and convertible notes 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.
Indemnity and insurance of officers and auditors
During the financial year, the Group paid a premium in respect of a contract insuring the directors of the
Group (as named above), the company secretary and all executive officers of the Group and of any related
body corporate against a liability incurred as a director, secretary or executive officer to the extent
permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure of the nature of the
liability and the amount of the premium.
The Group has not otherwise, during or since the end of the financial year, except to the extent permitted
by law, indemnified or agreed to indemnify an officer or auditor of the Group or of any related body
corporate against a liability incurred as such an officer or auditor.
Meetings of directors
The number of meetings of the Company's Board of Directors ('the Board') held during the year ended 30
June 2023, and the number of meetings attended by each director were:
Board of Directors
Attended
Held
Dr James Williams
6
6
Dr Sonia Poli
11
11
Mr Hugh Alsop
11
11
Dr Nina Webster
11
11
Mr Clinton Snow
2
2
Held: represents the number of meetings held during the time the director held office.
Dimerix Limited and controlled entity
Directors' report
30 June 2023
11
Proceedings on behalf of the Group
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring
proceedings on behalf of the Group, or to intervene in any proceedings to which the Group is a party for
the purpose of taking responsibility on behalf of the Group for all or part of those proceedings.
Non-audit services
In the event non-audit services are provided by the auditor, the Board has established procedures to ensure
that the provision of non-audit services is compatible with the general standard of independence for
auditors imposed by the Corporations Act 2001. These include:
●
all non-audit services are reviewed and approved to ensure that they do not impact the integrity and
objectivity of the auditor; and
●
non-audit services do not undermine the general principles relating to auditor independence as set out
in APES 110 ‘Code of Ethics for Professional Accountants’ issued by the Accounting Professional
& Ethical Standards Board, including reviewing or auditing the auditor’s own work, acting in
a management or decision-making capacity for the Company, acting as advocate for the Company
or jointly sharing economic risks and rewards.
Details of the amounts paid or payable to the auditor for non-audit services provided during the financial
year by the auditor are outlined in Note 27 to the financial statements.
Auditor's independence declaration
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act
2001 is set out immediately after this directors' report.
Dimerix Limited and controlled entity
Directors' report
30 June 2023
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 three product candidates: DMX-200 for FSGS; DMX-700 for COPD and DMX-200 for
diabetic kidney disease; as well as the proprietary Receptor- HIT assay technology.
Operating results
The loss for the Group for the year ended 30 June 2023 after providing for income tax amounted to
$13,802,819 (30 June 2022: $10,490,579).
The year ended 30 June 2023 operating results are attributed to the following:
- Research and development expenditure of $20,473,575 (30 June 2022: $14,389,424);
- Corporate and administration expenses of $2,283,714 (30 June 2022: $2,437,136); and
- Share based payments expense of $66,054 (30 June 2022: $129,842)
Review of operations
Summary
During the period, Dimerix continued to focus on the development of Dimerix’ DMX-200 drug candidate in
both renal and respiratory indications: DMX-200 in Focal Segmental Glomerulosclerosis (FSGS), and DMX-
700 Chronic Obstructive Pulmonary Disease (COPD).
Dimerix progressed its flagship clinical program during the period: FSGS ACTION3 Phase 3 study. FSGS first
patient was recruited in May 2022; 70 clinical sites were opened across 11 different countries; the first 72
patients (Part 1) were recruited in December 2022; the first 72 patients (Part 1) were randomised in July
2023; and the ACTION3 study completed two separate scheduled Data Safety Monitoring Board (DSMB)
reviews and recommended the study continue (February 2023 and August 2023). In addition to progressing
the ACTION3 Phase 3 study and the COPD pre-clinical asset, two investigator-led studies in respiratory
complications associated with COVID-19 closed and reported primary endpoint outcomes.
The pipeline assets are all based on compelling scientific rationale and/or existing clinical data and are all 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.
Dimerix Limited and controlled entity
Directors' report
30 June 2023
13
A summary of key announcements from the year is as follows:
•
Successful Completion of 2nd DSMB Review of FSGS Trial
•
Dimerix presentation at Bioshares Biotech Summit
•
DMX-200 FSGS PH3 Kidney Trial Part 1 Outcome set for Q1 CY24
•
ACTION3 Part 1: First interim data outcome expected to be reported on, or around, 15 March 2024
•
ACTION3 Part 1: Last patient data collection for Phase 3 study scheduled for 26 February 2024
•
Approval received for Paediatric Investigation Plan from EMA
•
Dimerix confirms Phase 3 study design appropriate for China
•
Rights Issue Prospectus
•
Results of Extra General Meeting
•
Dimerix to present at BIO International Convention
•
Dimerix Announces Update on Successful Capital Raise
•
Investor Webinar
•
Rights Issue Prospectus
•
Entitlement offer and Convertible Note to raise $12 million
•
Dimerix Announces New Board Member
•
Dimerix presentation at Wholesale Investors, highlighting FSGS ACTION3 program and partnering
progress
•
Advanced partnering negotiations with material offers received from multiple parties for various
territories
•
FSGS Study, Partnering & Commercialisation Investor Briefing
•
Half-Year Financial Report & Appendix 4D - 31 December 2022
•
DXB to Receive $2.8m in Prepayment of R&D Tax Incentive
•
Successful Completion of DSMB Review of Phase 3 FSGS Trial
•
REMAP-CAP investigators published outcomes of ACE2 RAS modulation study in COVID-19, with no
safety concerns noted for DMX-200
•
FDA Confirms Inclusion of Paediatrics in ACTION3 Study
•
Resignation of Non-Executive Chairman
•
DMX-200 FSGS Phase 3 Trial Part 1 Recruitment Achieved
•
CLARITY 2.0 COVID-19 Study Outcome
•
Results of Annual General Meeting
•
Chair address and CEO presentation to AGM
•
Investor Briefing
•
Dimerix presentation at BioEurope partnering conference, the largest gathering of global pharma
companies outside the US
•
AusBioInvest Presentation, including FSGS recruitment update
•
Dimerix Receives A$6.0M R&D Tax Incentive Rebate
•
CLARITY 2.0 COVID-19 Study Concludes Recruitment
•
New Patent Family Application for DMX-700
•
DMX-700 Study Shows Significant 80% Reduction in Lung Injury
Dimerix Limited and controlled entity
Directors' report
30 June 2023
14
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, European and Asian markets.
Dimerix strives to develop products to help patients with unmet 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 is adopting a diversified investment approach, targeting a range of specialty innovative new
chemical entities (NCE’s) along with re-purposed candidates which provides a balanced approach and
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.
ESG Statement
Dimerix is committed to integrating Environmental, Social and Governance (ESG) considerations across the
development cycle of its programs, processes and decision making. The Dimerix commitment to improve
its ESG performance demonstrate a strong, well-informed management attitude and a values-led culture
that is both alert and responsive to the challenges and opportunities of doing business responsibly and
sustainably.
Dimerix Limited and controlled entity
Directors' report
30 June 2023
15
ESG Commitment
Environmental
Social
Governance
We encourage sustainability by
improving efficiency across our
business and streamlining our
operations and processes. This
includes
promote
a
flexible
working environment that may
reduce emissions from commuting
We take pride in the success,
growth and empowerment of our
employees. We strive to attract
and nurture a talented workforce,
whilst simultaneously enabling a
better work-life balance, improving
employee wellbeing
We operate on behalf of our
shareholders and strive to be a
value
creator
to
meet
their
expectations. We are continuously
making efforts to raise the level of
trust and confidence of all our
stakeholders
Diversity
The charts below show board and staff makeup by various characteristics:
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 known as C–C chemokine receptor type 2,
or CCR2. It is administered as a capsule twice daily to patients already on
standard of care treatment (angiotensin receptor blocker or ARB). DMX-
200 is considered a New Chemical Entity (NCE), and alongside the Orphan Drug Designations, could qualify
for market exclusivity in many territories, including seven years (US) and ten years (Europe).
Following the two DMX-200 Phase 2 renal studies that were successfully completed in 2020, Dimerix
commenced a pivotal Phase 3 clinical study for DMX-200 in FSGS, titled ACTION3.
Board
Staff
2
2
73%
Self-identified
as having
gender, racial
and/or ethnic
diversity
Dimerix Limited and controlled entity
Directors' report
30 June 2023
16
DMX-200 Market Background
Renal
Without adequate management, the progressive nature of kidney disease inevitably results in poor
prognosis for patients. It most often results in total kidney failure and a poor quality of life. When the
kidneys fail, it means they have stopped working well enough for the patient to survive without dialysis or
a kidney transplant. A kidney transplant costs in the region of $260,000 per patient,1 with ongoing and
expensive anti-rejection drugs also costing thousands of dollars per year, and dialysis costs in the region of
$100,000 per patient per year.1 Moreover, dialysis requires regular visits, totalling over 12 hours per week
to the medical facility2 - 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.
Focal Segmental Glomerulosclerosis
FSGS is a rare disease that attacks the kidney’s filtering units, where blood is cleaned (called the ‘glomeruli’),
causing irreversible scarring. This leads to permanent kidney damage and eventual end-stage failure of the
organ, requiring dialysis or transplantation. For those diagnosed with FSGS the prognosis is not good. The
average time from a diagnosis of FSGS to the onset of complete kidney failure is only five years and it affects
both adults and children as young as two years old.3 For those who are fortunate enough to receive a kidney
transplant, approximately 60% will get re-occurring FSGS in the transplanted kidney.4 At this time, there are
no drugs specifically approved for FSGS anywhere in the world, so the treatment options and prognosis are
poor.
FSGS is a billion-dollar plus market: the number of people with FSGS in the US alone is just over 80,000, and
worldwide about 220,000.5 The illness has a global compound annual growth rate of 8%, with over 5,400
new cases diagnosed in the US alone each year.6 Because there is no effective treatment, Dimerix has
received Orphan Drug Designation for DMX-200 in both the US and Europe for FSGS. Orphan Drug
Designation is granted to support the development of products for rare diseases and qualifies Dimerix for
various development incentives including: seven years (FDA) and ten years (EMA) of market exclusivity if
regulatory approval is received, exemption from certain application fees, and a fast-tracked regulatory
pathway to approval.
1 Pockros B et al (2021), Dialysis and Total Health Care Costs in the United States and Worldwide, Journal of the American Society of
Nephrology, 32 (9) 2137-2139
2 Kidney Health Australia (2022); Haemodialysis: https://kidney.org.au/uploads/resources/haemodialysis-photosheet.pdf
3 Guruswamy Sangameswaran KD, Baradhi KM. (2021) Focal Segmental Glomerulosclerosis), online:
https://www.ncbi.nlm.nih.gov/books/NBK532272/
4 Front. Immunol., (July 2019) | https://doi.org/10.3389/fimmu.2019.01669
5 Delve Insight Market Research Report (2022): Focal segmental glomerulosclerosis (FSGS) – Market Insight, Epidemiology and
market forecast – 2032; https://www.delveinsight.com/report-store/focal-segmental-glomerulosclerosis-fsgs-market;
6 Nephcure Kidney International (2020); Focal Segmental Glomerulosclerosis, online
Dimerix Limited and controlled entity
Directors' report
30 June 2023
17
The DMX-700 Program
IL-8 is produced by epithelial cells, airway smooth muscle cells and endothelial cells, and, in many chronic
inflammatory diseases including Chronic Obstructive Pulmonary Disease (COPD), is expressed at elevated
levels leading to abnormal recruitment of neutrophils that cause damage to the lung tissue. Prior studies
have shown that inhibiting signalling of Interleukin 8 receptor beta (IL-8Rβ) reduces neutrophil movement
and subsequently reduces mucus production and inflammation in COPD.
The DMX-700 drug candidate has been shown to block IL-8Rβ (also known as CXCR2) and angiotensin II
receptor type 1 (AT1R) that have been independently implicated in the pathophysiology of COPD. Novel
findings on molecular pharmacology profiling, using a number of techniques including using Receptor-HIT,
has demonstrated that the DMX-700 drug candidate abolished receptor signalling involved in neutrophil
recruitment.
During the period, the activity of DMX-700 was tested in mice using an oral dose delivery in the porcine
pancreatic elastase (PPE) model of COPD. This model is the mostly commonly used COPD model as it mimics
the inflammatory response (effect of activated neutrophils) in the lungs of mice and leads to breakdown of
lung tissue and emphysema (shortness of breath). DMX-700 resulted in a statistically significant 80%
(p<0.01, n=6) reduction in the PPE-induced lung injury in mice. In contrast inhibiting only AT1R or IL-8Rβ
individually had no statistically significant effect on lung injury induced by PPE.
The very encouraging and statistically significant pre-clinical data strongly supports further development of
DMX-700. Dimerix assessed three different IL-8Rβ inhibitors with an AT1R inhibitor in the pre-clinical model,
with all three IL-8β inhibitors demonstrating strong efficacy outcomes and all covered by Dimerix
intellectual property. Further intellectual property has been identified and an additional patent application
is underway. The DMX-700 compounds individually have a known safety profile in human studies, meaning
DMX-700 may potentially move directly into clinical studies, subject to regulatory approval(s). Further dose
ranging studies were completed during the period.
DMX-700 Market Background
COPD is a progressive and life-threatening lung disease. The most common cause of COPD is exposure to
tobacco smoke (either active smoking or secondary smoke), however is also caused by exposure to indoor
and outdoor air pollution, occupational dusts and fumes and long-term asthma.7
COPD is the third-leading cause of death in the world, causing 3.23 million deaths globally in 2019.8 In the
United States, COPD affects 1 in 8 Americans age 45 and older,8 and 1 in 20 Australia aged 45 years,9 but
millions more may have the disease without even knowing it.10 Although treatments exist to improve the
symptoms of COPD, there is currently no way to slow progression of the condition or cure it.
The global COPD treatment market was valued at US$17.68 billion in 2021 and is projected to grow at a
Compound Annual Growth Rate (CAGR) of 7.28% to reach US$27 billion by 2027.11
7 WHO Fact Sheet COPD (2022) online: https://www.who.int/news-room/fact-sheets/detail/chronic-obstructive-pulmonary-disease-
(copd)
8 NIH National COPD Action Plan (2021) online: https://www.nhlbi.nih.gov/health-topics/education-and-awareness/COPD-national-
action-plan
9 Australian Government, Institute of Health and Welfare (2020): online: https://www.aihw.gov.au/reports/asthma-other-chronic-
respiratory-conditions/copd-chronic-obstructive-pulmonary-disease/contents/deaths
10 American Lung Association Fact Sheet (2022), online: https://www.lung.org/lung-health-diseases/lung-disease-
lookup/copd/learn-about-copd
11 Chronic Obstructive Pulmonary Disease Therapeutics Market Research Report (2022) online:
https://www.researchandmarkets.com/reports/4989588/chronic-obstructive-pulmonary-disease
Dimerix Limited and controlled entity
Directors' report
30 June 2023
18
There is a significant unmet need in COPD, which is recognised by key organisations such as the National
Institutes of Health (NIH) and globally by the World Health Organization (WHO) and the Centers for Disease
Control and Prevention (CDC). In 2021 the NIH released the revised COPD National Action Plan in an effort
to support research, diagnosis and treatment of the disease.37 Following this recognition, in 2018 the FDA
issued revised guidance to help sponsors developing drugs to treat COPD.39 The new guidance will enable
shorter clinical trials using surrogate and patient-reported endpoints.
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 have been filed
that may extend this protection to 2042 if granted, in addition to any exclusivity periods granted.
During the period:
•
1 additional patent covering DMX-200 was granted in the US, titled Method of treating Inflammatory
Disorders” (US patent number 11,382,896);
•
4 additional new patent applications covering DMX-200 were filed in various territories, titled
‘Therapeutic Formulations for Kidney Disease’ (AU2023901450, CN202310747837.1, TW112121087),
and ‘Combination Therapy’ (EP 23161550.1); and
•
2 new patent applications covering DMX-700 were filed in various territories, titled ‘Method and
Composition for the Treatment of Disease’ (HK62022062441), and ‘Dosage Regime for the Treatment
of COPD’ (AU2022902171)
If granted, the patent applications could extend and broaden the protection for DMX-200 until at least
March 2042, and DMX-700 until at least August 2043.
The current intellectual property strategy is aligned with the Dimerix business strategy and objectives.
Dimerix continuously monitors the competitive landscape to identify, assess and minimise any IP risks, and
to strengthen the Dimerix IP position.
Commercial Manufacturer
The development of Dimerix manufacturing capabilities has significantly progressed throughout the period.
Dimerix conducted the registration batches required for pharmaceutical grade DMX-200 market approval,
and continued further clinical 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, 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 $7,991,792 and expects to receive a Research and
Development tax incentive refund of $8,934,637 following 30 June 2023, further boosting capital resources.
Dimerix Limited and controlled entity
Directors' report
30 June 2023
19
Financial position
30 June 2023 30 June 2022
$
$
Cash and cash equivalents
7,991,792
9,629,756
Net assets / total equity
5,963,119
14,422,640
Contributed equity
55,489,363
50,895,134
Accumulated losses
(52,100,965)
(38,298,146)
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 2023.
Events after the reporting period
On 08 August 2023 the Company issued 1,256,250 ordinary shares, 628,125 listed options and 628,215
unlisted options in relation to the placement of shortfall securities under the Prospectus lodged with ASIC
and released to ASX on 04 May 2023.
On 28 August 2023 the Company issued 2,250,000 ordinary shares, 1,125,000 listed options and 1,125,000
unlisted options in relation to the placement of shortfall securities under the Prospectus lodged with ASIC
and released to ASX on 04 May 2023.
No other matter or circumstance has arisen since 30 June 2023 that has significantly affected, or may
significantly affect the Group's operations, the results of those operations, or the Group's state of affairs in
future financial years.
Future developments, prospects and business strategies
Dimerix continues to progress its ACTION3 Phase 3 clinical trial in FSGS. To support the FSGS global Phase 3
study, Dimerix works closely with IQVIA, the lead Contract Research Organisation (CRO). IQVIA is the largest
global CRO and has extensive and recent experience in running late-stage global FSGS clinical studies. Over
70 sites have been actively recruiting patients globally.
The last patient data collection for Part 1 of the ACTION3 Phase 3 study is scheduled for 26 February 2024,
with the first interim data outcome expected to be reported on, or around, 15 March 2024.
Dimerix has continued to progress its commercial manufacturing capabilities through an FDA approved
global contract manufacturing organisation based in the US. The US FDA regulates the manufacturing and
quality of pharmaceuticals. The main regulatory standard for ensuring pharmaceutical quality is the Good
Manufacturing Practice (GMP) regulation for human pharmaceuticals. Patients expect that each batch of
medicines they take will meet quality standards so that they will be safe and effective.
Environmental regulation
The Group's operations are not subject to any significant environmental regulation under Australian
Commonwealth or State law.
Dimerix Limited and controlled entity
Directors' report
30 June 2023
20
Business Risks
(a) Clinical trial risks
The Group is currently undertaking a phase 3 clinical trial (ACTION3) for its proprietary product, DMX-200,
for the treatment of Focal Segmental Glomerulosclerosis (FSGS). The Group releases material updates on
the status of the ACTION3 clinical trial to ASX, including as part of its periodic reporting. The Group
may undertake additional clinical trials in future, including but not limited to for DMX-200 and DMX-700.
The Group may experience delay in achieving a number of critical milestones required to undertake clinical
trials or meet significant data points. Manufacturing of clinical trial materials, logistics and distribution to
clinical sites may result in significant additional cost and delay. Clinical trials might also potentially expose
the Group to product liability claims if its products in development have unexpected effects on clinical
subjects.
Clinical trials undertaken by the Group have many associated risks which may impact the profitability and
future productions and commercial potential of the Group. They may prove unsuccessful or non-efficacious,
impracticable or costly. The clinical trials could be terminated which will likely have a significant adverse
effect on the Group, the value of its securities and the future commercial development of its products.
(b) Commercialisation risk
The current business strategy of the Group is to focus on drug discovery and to develop each asset to a
stage of value determination leading to a commercial realisation. Typically, that will be a trade sale or license
of individual drug candidates to a third party with greater resources and expertise to undertake late-stage
drug development, regulatory approvals, and sales and marketing. There is no certainty that any of the
Group’s drug candidates will be of interest to such a third party or, if a drug candidate is of interest to such
a third party, that terms can be negotiated that are commercially acceptable to the Group or will adequately
realise the value of the drug candidate.
(c) Competition risk
The industry in which the Group operates are characterised by rapid and continuous innovation and
development. The Group faces substantial competition as new and existing companies enter the market
and advances in research and technology become available. The Group’s product(s) or potential product(s)
and services and expertise may be rendered obsolete or uneconomical by advances or entirely different
approaches developed by either the Group or one or more of its competitors. The size and financial strength
of some of the Group’s competitors may make it difficult for the Group to maintain a competitive position,
including for the Group to respond effectively and/or in a timely manner to the actions of actual or potential
competitors.
(d) Arrangements with Third-Party Collaborators
The Group may pursue collaborative arrangements with pharmaceutical and life science companies,
academic institutions or other partners to complete the development and commercialisation of its products.
These collaborators may be asked to assist with funding or performing clinical trials, manufacturing,
regulatory approvals or product marketing. There is no assurance that the Group will attract and retain
appropriate strategic partners or that any such collaborators will perform and meet commercialisation
goals. If the Group is unable to find a partner, it would be required to develop and commercialise DMX-200
and DMX-700 (and other potential products) at its own expense. This may place significant demands on the
Group’s internal resources and potentially delay the commercialisation of DMX-200 and DMX-700 (and
other products).
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Directors' report
30 June 2023
21
(e) Intellectual Property risks
Obtaining, securing and maintaining the Group’s intellectual property rights is an integral part of securing
potential value arising from conduct of the Group’s business. If patents are not granted, or if granted only
for limited claims, the Group’s intellectual property may not be adequately protected and may be able to
be copied or reproduced by third parties. The Group may not be able to achieve its objectives, to
commercialise its products or to generate revenue or other returns.
The patent position of biotechnology and pharmaceutical companies can be highly uncertain and frequently
involves complex legal and factual questions. Accordingly, there can be no guarantee that any patent
applications will be successful and lead to granted patents or all of the claims in any application will be
granted. Furthermore, should such patent applications be granted, there is no guarantee competitors will
not develop technology to avoid those patents, or that third parties will not seek to claim an interest in the
intellectual property with a view to seeking a commercial benefit from the Group.
The Group has engaged patent attorneys to develop and implement an intellectual property strategy to
seek to establish broad patent protection to enable it to guard its exclusivity, maintain an advantage over
competitors and provide it with a basis for enforcement in the event of infringement, but there is no
guarantee that this intellectual property strategy will be successful. There also can be no assurance
employees, consultants or third parties will not breach their confidentiality obligations or not infringe or
misappropriate the Group’s intellectual property.
The Group seeks to mitigate the risk of unauthorised use of its intellectual property by limiting disclosure of
sensitive material to particular employees, consultants and others on a need to know basis. Where
appropriate, parties having potential access to such sensitive material will be required to provide written
commitments to confidentiality and ownership of intellectual property.
(f) Third party intellectual property infringement claims
The Group’s success depends, in part, on its ability to enforce and defend its intellectual property against
third party challengers. The Group believes that the manner in which it proposes to conduct activities will
minimise the risk of infringement upon another party’s patent rights. However, there can be no assurance
that another party will not seek to claim the Group is infringing upon their rights.
While the Group relies on the advice of its patent attorneys that its patent applications do not infringe third
party patents, the Group is unable to state with certainty that another party will not claim its rights are
infringed or, if litigation claiming that the Group is infringing the intellectual property rights of a third party
is launched, what the result of any such litigation will be. If a third party accuses the Group of infringing its
intellectual property rights or commences litigation against the Group for infringement of patent or other
intellectual property rights, the Group may incur significant costs defending such action, whether or not it
ultimately prevails.
(g) Non-intellectual property based litigation, claims and disputes
In addition to the above risks relating to intellectual property litigation, the Group may be subject to
litigation and other claims and disputes in the course of its business, including contractual disputes with
suppliers or customers, employment disputes, indemnity claims, and occupational and other claims. There
is a risk that any such litigation, claim or dispute could materially adversely impact the Group’s operating
and financial performance due to the significant cost and time invested by management in investigating,
commencing, defending and/or settling such matters. Any claim against the Group, if proven, may also have
a sustained negative impact on its operations, financial performance, financial position and reputation.
The Group is not currently engaged in litigation and, as at the date of this Prospectus, the Directors are not
aware of any legal proceedings pending or threatened against, or any material legal proceedings affecting,
the Group.
Dimerix Limited and controlled entity
Directors' report
30 June 2023
22
(h) Trade Secrets
The Group relies on its trade secrets, including information relating to the manufacture, development and
administration of its drug candidates. The protective measures employed by the Group may not provide
adequate protection for its trade secrets. This may erode the Group’s competitive advantage and materially
harm its business. Further, the Group cannot be certain that others will not independently develop the same
or similar technologies on their own or gain access to trade secrets.
(i) Regulatory risk, reimbursement approvals and government policy
Changes to the laws, regulations, standards and practices applicable to the industry in which the Group
operates (for example, drug approval regulations and government R&D rebates) may increase costs and
limit the Group’s proposed scope of activity. The Group has little or no control over these risks.
Consequently, there can be no firm assurance that the Group can effectively limit these risks, which could
materially adversely affect its business, financial condition and results of operations.
The research, development, manufacture, marketing and sale of products using the Group’s technology are
subject to varying degrees of regulation by a number of government authorities in Australia and overseas.
Products, including DMX-200 and DMX-700, developed using the Group’s technology, must undergo a
comprehensive and highly regulated development and review process before receiving approval for
marketing. The process includes the provision of clinical data relating to the quality, safety and efficacy of
the products for their proposed use.
Products may also be submitted for reimbursement approval. The availability and timing of that regulatory
and/or reimbursement approval may have an impact upon the uptake and profitability of products in some
jurisdictions. Furthermore, any of the products utilising the Group’s technology may be shown to be unsafe,
non-efficacious, difficult or impossible to manufacture on a large scale, uneconomical to market, compete
with superior products marketed by third parties or not be as attractive as alternative treatments.
(j) R&D reimbursement risk
The Group has in the past and intends in future to apply for the Research and Development (R&D) tax
incentive rebate to receive up to 43.5% refundable tax offset of eligible expenses associated with R&D
initiatives. Whilst the Group is not aware of any reason why it would not be eligible to receive the R&D tax
incentive rebate in the future, no guarantee can be given that the requirements for receiving the R&D tax
incentive rebate will not change such that the Group no longer becomes eligible.
The Group received a secured loan representing pre-payment of 80% of its anticipated 2022 calendar year
R&D tax incentive rebate from Radium Capital. In the event that the loan is not repaid from funds raised, if
the 2022 R&D tax incentive rebate is delayed or the requirements change such that the Group becomes
ineligible, there is a risk that the Group will be unable to repay the loan. As noted above however, the Group
is not aware of any reason why it would not be eligible to receive the 2023 R&D tax incentive rebate and
the Group is not aware of any reason why the 2023 R&D tax incentive rebate may be delayed.
(k) Management actions
The Directors will, to the best of their knowledge, experience and ability (in conjunction with the
management team) endeavour to anticipate, identify and manage the risks inherent in the activities of the
Group, but without assuming any personal liability, with the aim of eliminating, avoiding and mitigating the
impact of risks on the performance of the Group and its securities.
Dimerix Limited and controlled entity
Directors' report
30 June 2023
23
The Group is dependent on the principal members of its scientific and development team, the loss of whose
services could materially adversely affect the Group and may impede the achievement of its research and
development objectives. Given the nature of the Group’s activities, its ability to maintain its program is
dependent on its ability to attract and maintain appropriately qualified personnel either within the Group
or through contractual arrangements. If one or more of the Group’s key personnel was unwilling or unable
to continue in their current roles, there is a risk that the Group may be unable to recruit a suitable
replacement on commercially acceptable terms or at all. The loss of any key personnel, without suitable and
timely replacement, may significantly disrupt the operations of the Group’s business and impede the
Group’s ability to implement its business plans. This may, in turn, have a materially adverse effect on both
the financial performance and future prospects of the Group. The Group may also incur significant costs in
recruiting and retaining new key personnel.
Further, the Group’s current size affects its ability to provide substantial training and development
opportunities to its key managers and personnel. Extensive ongoing development opportunities are not
feasible for a small biotechnology Group such as the Group. The Group has sought to address this risk by
hiring sufficiently qualified and skilled management and scientific development staff.
(l) Reliance on key personnel
The Group's future depends, in part, on its ability to attract and retain key personnel. It may not be able to
hire and retain such personnel at compensation levels consistent with its existing compensation and salary
structure. Its future also depends on the continued contributions of its executive management team and
other key management and technical personnel, the loss of whose services would be difficult to replace. In
addition, the inability to continue to attract appropriately qualified personnel could have a material adverse
effect on the Group's business.
(m) Human Resources
The Group’s future success depends on its continuing ability to retain and attract highly qualified and
experienced personnel. Competition for such personnel can be intense and there can be no assurance that
Dimerix will be able to attract and retain additional highly qualified personnel in the future, The ability to
attract and retain necessary personnel could have a material adverse effect on the Group reputation and
financial position.
(n) Future capital requirements
Pharmaceutical R&D activities require a high level of funding over a protracted period of time. Additional
development costs may arise during this period and the Group may require additional funding to meet its
stated objectives or may decide to accelerate or diversify its activities within the same area. The Group’s
requirement for additional capital may be substantial and will depend on many factors, some of which are
beyond the Group’s control, including:
●
slower than anticipated research progress, including clinical trial recruitment;
●
the requirement to undertake additional research;
●
competing technological and market developments;
●
the cost of protecting the Group’s intellectual property; and
●
progress with commercialisation of any of the Group’s drug candidates.
The Group will constantly evaluate data arising from its pre-clinical and clinical studies that may indicate
new uses for its products and allow the Group to file patents, thereby providing potential new development
and partnering opportunities. Accordingly, the Group may alter its funding strategies to take advantage of
such new opportunities if and when they present themselves.
Dimerix Limited and controlled entity
Directors' report
30 June 2023
24
There is no assurance that the funding required by the Group from time to time to meet its business
requirements and objectives will be available to it, on favourable terms or at all. Subject to restrictions on
the issue or grant of securities contained in the Listing Rules, the Constitution and the Corporations Act, the
Directors may issue securities as they shall, in their absolute discretion, determine. To the extent available,
any additional equity financing may dilute existing shareholdings and any debt financing may involve
restrictions on the Group’s financing and operating activities. If the Group is unsuccessful in obtaining funds
when required, it may be necessary for it to reduce the scope of its operations.
Any of these consequences may significantly adversely impact the performance of the Group.
(o) Loss or theft of data
The Group complies with applicable privacy data protection laws. However, disruption by privacy breaches
may impact the security of employee information/ data, unauthorised hacking, disruption, general misuse
or unauthorised disclosure of data. The Group undertakes measures to prevent and detect the occurrence
of such privacy breaches, there is a risk that such measures may not be adequate. Any data breach will need
to be reported to the relevant authorities and may cause substantial reputational and financial damage to
the Group.
Dimerix Limited and controlled entity
Directors' report
30 June 2023
25
Remuneration report (audited)
This remuneration report, 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 2023.
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 Sonia Maria Poli
Non-Executive Director
Mr Hugh Alsop
Non-Executive Director
Mr Clinton Snow (appointed 1 May 2023)
Non-Executive Director
Dr James Williams (resigned 23 December 2022)
Non-Executive Chairman
Executive Employees
Position
Dr Nina Webster
Chief Executive Officer/Managing Director
Dr Ashish Soman
Chief Medical Officer
Unless otherwise stated, the named persons held their current position for the whole of the financial year
or date of appointment and since the end of the financial year.
Remuneration policy
The board of directors of the Group is currently responsible for determining and reviewing compensation
arrangements for key management personnel. The Group does not currently operate a Remuneration
Committee. The remuneration policy, which is set out below, is designed to promote superior performance
and long-term commitment to the Group.
Non-executive directors remuneration
Non-executive directors and Chairman are remunerated by way of fees, in the form of cash, non-cash
benefits, superannuation contributions or salary sacrifice into equity and do not normally participate in
schemes designed for the remuneration of executives.
Shareholder approval must be obtained in relation to the overall limit set for the non-executive directors’
fees. The maximum aggregate remuneration approved by shareholders for non-executive directors is
$500,000 per annum. The directors set the individual non-executive director fees within the limit approved
by shareholders. Non-executive directors are not provided with retirement benefits.
Dimerix Limited and controlled entity
Directors' report
30 June 2023
26
Executive director remuneration
Executive directors receive a base remuneration which is at market rates, and may be entitled to
performance based remuneration, which is determined on an annual basis. Overall remuneration policies
are subject to the discretion of the board and can be changed to reflect competitive and business conditions
where it is in the interests of the Group and shareholders to do so. Executive remuneration and other terms
of employment are reviewed annually by the board having regard to the performance, relevant comparative
information and expert advice.
The board’s remuneration policy reflects its obligation to align executive remuneration with shareholders’
interests and to retain appropriately qualified executive talent for the benefit of the Group. The main
principles are:
●
remuneration reflects the competitive market in which the Group operates;
●
individual remuneration should be linked to performance criteria if appropriate; and
●
executives should be rewarded for both financial and non-financial performance.
The total remuneration of executives consists of the following:
●
salary – executives receive a fixed sum payable monthly in cash plus superannuation at relevant
minimum statutory superannuation contribution;
●
cash at risk component – executives may participate in share and option schemes generally made in
accordance with thresholds set in plans approved by shareholders if deemed appropriate. However,
the board considers it appropriate to issue shares and options to executives outside of approved
schemes in exceptional circumstances;
●
other benefits – executives may, if deemed appropriate by the board, be provided with a fully expensed
mobile phone and other forms of remuneration; and
●
performance bonus.
The board has not formally engaged the services of a remuneration consultant to provide recommendations
when setting the remuneration received by directors or other key management personnel during the
financial year.
Relationship between the remuneration policy and Group performance
The board considers that at this time, evaluation of the Group’s financial performance using generally
accepted measures such as profitability, total shareholder return or per Group comparison are not relevant
as the Group is in the process of a phase 3 trial as outlined in the directors’ report.
Remuneration of key management personnel
Amounts of remuneration
Details of the remuneration of key management personnel of the Group are set out in the following tables.
Dimerix Limited and controlled entity
Directors' report
30 June 2023
27
2023
Short-
term
benefits
Short-
term
benefits
Short-
term
benefits
Post-
employment
benefits
Share
based
payment
Performance
related %
Salary and
fees
Bonus
Other3
Superannuatio
n
Options
Total
$
$
$
$
$
$
%
Sonia Poli
60,000
-
-
-
-
60,000
-
Hugh Alsop
60,000
-
17,500
-
-
77,500
-
James Williams1
41,187
-
-
4,514
-
45,700
-
Clinton Snow2
9,050
-
-
950
-
10,000
-
Nina Webster (CEO)
349,500
-
12,026
25,292
- 386,818
6%
Ashish Soman
318,196
-
17,356
25,292
22,662 383,506
-
Total
837,933
-
46,882
56,048
22,662 963,524
1 Resigned 23 December 2022.
2 Appointed 1 May 2023.
3 Other comprises annual leave expense and long service leave expense for the year and a one off payment
to Hugh Alsop in relation to additional services performed during the financial year.
2022
Short-
term
benefits
Short-
term
benefits
Short-
term
benefits
Post-
employment
benefits
Share
based
payment
Performance
related %
Salary and
fees
Bonus1
Other2
Superannuatio
n
Options
Total
$
$
$
$
$
$
%
Sonia Poli
60,000
-
-
-
26,339
86,339
-
Hugh Alsop
54,545
-
-
5,455
26,339
86,339
-
James Williams
86,364
-
26,000
11,236
41,703 165,303
-
Nina Webster (CEO)
340,976 126,563
22,585
23,568
3,249 516,941
26%
Ashish Soman
75,040
-
5,772
5,892
-
86,704
-
Total
616,925 126,563
54,357
46,151
97,630 941,626
1 Performance bonus for the year based on agreed criteria. Bonus split as $65,187 relating to FY2021 and
$61,376 relating to FY2022.
2 Other comprises annual leave expense and long service leave expense for the year and a one off payment
to James Williams in relation to additional services performed during the financial year.
No key management personnel appointed during the year received a payment as part of his or her
consideration for agreeing to hold the position.
Bonuses and share-based payments granted as compensation for the current financial year
Bonuses
Nina Webster has not been paid a bonus relating to FY2023. (30 June 2022: $65,187 relating to FY2021 and
$61,376 relating to FY2022.)
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Directors' report
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28
Incentive share-based payments arrangements
750,000 options were issued to key management personnel as remuneration during the year (30 June 2022:
599,140). No share options were exercised by key management personnel during the year (30 June 2022:
nil).
The total share-based payment expense amortised for the financial year ended 30 June 2023 in relation to
key management personnel was $22,662 (30 June 2022: $97,630).
No directors options were cancelled in 2023.
Share-based compensation
Issue of shares
There were no shares issued to directors and other key management personnel as part of compensation
during the year ended 30 June 2023.
Key terms of employment contracts
Dr James Williams
On 1 April 2019 Dr James Williams terms as Non-Executive Chairman were reconfirmed and his
remuneration and other terms of appointment were formalised in a revised letter of appointment, the key
terms and conditions of which are:
●
Term of agreement – monthly until termination by the Company or until the next AGM.
●
No entitlement to any compensation or damage or payment of any further director’s fees for any period
after termination.
●
Remuneration of $80,000 per annum (inclusive of superannuation).
From 01 July 2020 remuneration increased to $95,000 per annum inclusive of superannuation.
On 23 December 2022 James Williams resigned as Non-Executive Chairman.
Dr Sonia Poli
On 3 July 2015, Dr Sonia Poli was appointed as Non-Executive Director and her remuneration and other
terms of appointment were formalised in a letter of appointment, the key terms and conditions of which
are:
●
Term of agreement – monthly until termination by the Company or until the next AGM.
●
No entitlement to any compensation or damage or payment of any further director’s fees for any period
after termination.
●
Remuneration of $45,000 per annum (plus GST if applicable).
From 01 July 2020 remuneration increased to $60,000 per annum.
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:
Dimerix Limited and controlled entity
Directors' report
30 June 2023
29
●
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).
From 01 July 2020 remuneration increased to $60,000 per annum inclusive of superannuation.
Mr Clinton Snow
On 1 May 2023, Mr Clinton Snow was appointed as Non-Executive Director and his 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.
●
Non entitlement to any compensation or damage or payment of any further director's fees for any
period after termination
●
Remuneration of $60,000 per annum (inclusive of superannuation)
Dr Nina Webster
On 27 August 2018 Nina Webster was appointed CEO and Managing Director with the following key terms
and conditions:
●
Remuneration of $303,900 per annum exclusive of superannuation and short-term incentives of up to
30% base salary against agreed stretch milestones.
●
Term of agreement – employment may be terminated by either party giving three month’s notice.
From 01 July 2022 remuneration increased to $349,500 per annum exclusive of superannuation.
Dr Ashish Soman
On 5 April 2022 Ashish Soman was appointed Chief Medical Officer with the following key terms and
conditions:
●
Remuneration of $333,568 per annum inclusive of superannuation and short-term incentives of up to
25% base salary against agreed stretch milestones.
●
Term of agreement – employment may be terminated by either party giving three month’s notice.
From 05 July 2022 remuneration increased to $343,568 per annum inclusive of superannuation.
On appointment to the board, all non-executive directors are required to sign a letter of appointment with
the Company. The letter of appointment summarises the Board policies and terms, including compensation
relevant to the office or director.
Dimerix Limited and controlled entity
Directors' report
30 June 2023
30
Key management personnel equity holdings
Fully paid ordinary shares of Dimerix Limited
2023
Balance at
Received as
part
Additions
Disposals/
others
Balance at
1 July
of
remuneration
30 June
Sonia Poli 1
205,000
-
125,000
-
330,000
Hugh Alsop 2
-
-
-
-
-
James Williams 1,5
2,377,355
-
- (2,377,355)
-
Clinton Snow 6
-
-
-
-
-
Nina Webster 3
95,000
-
187,500
-
282,500
Ashish Soman 4
-
-
-
-
-
2,677,355
-
312,500 (2,377,355)
612,500
2022
Balance at
Received as
part
Additions
Disposals/
others
Balance at
1 July
of
renumeration
30 June
Sonia Poli 1
130,000
-
75,000
-
205,000
Hugh Alsop 2
-
-
-
-
-
James Williams 1,5
2,252,355
-
125,000
-
2,377,355
Nina Webster 3
45,000
-
50,000
-
95,000
Ashish Soman 4
-
-
-
-
-
2,427,355
-
250,000
-
2,677,355
1 Appointed 3 July 2015
2 Appointed 1 May 2017
3 Appointed 27 August 2018
4 Appointed 5 April 2022
5 Resigned 23 December 2022 and balance held at resignation
6 Appointed 1 May 2023
Dimerix Limited and controlled entity
Directors' report
30 June 2023
31
Share options of Dimerix Limited
2023
Opening
balance at
Granted
as
Granted
from
Exercised/
Closing
balance at
Balance
vested at
Vested
and
Options
vested
1 July
compensa
tion
capital
raise
Cancelled
30 June
30 June
exercisabl
e
during
year
No.
No.
No.
No.
No.
No.
No.
No.
Sonia Poli
204,702
-
136,336
-
341,038
341,038
341,038
136,336
Hugh Alsop
167,202
-
-
-
167,202
167,202
167,202
-
James Williams 1
327,236
-
-
(327,236)
-
-
-
-
Clinton Snow 2
-
-
-
-
-
-
-
-
Nina Webster
6,376,975
-
221,667
- 6,598,642 6,598,642 6,598,642
221,667
Ashish Soman
-
750,000
-
-
750,000
247,500
247,500
247,500
2022
Opening
balance at
Granted
as
Granted
from
Exercised/
Closing
balance at
Balance
vested at Vested and
Options
vested
1 July
compensa
tion
capital
raise
Cancelled
30 June
30 June
exercisable
during
year
No.
No.
No.
No.
No.
No.
No.
No.
Sonia Poli
-
167,202
37,500
-
204,702
204,702
204,702
204,702
Hugh Alsop
-
167,202
-
-
167,202
167,202
167,202
167,202
James Williams
-
264,736
62,500
-
327,236
327,236
327,236
327,236
Nina Webster
6,351,975
-
25,000
- 6,376,975 6,376,975
6,376,975 1,058,662
Ashish Soman
-
-
-
-
-
-
-
-
1 James Williams resigned as Non-Executive Chairman on 23 December 2022
2 Clinton Snow appointed on 1 May 2023
This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the
Corporations Act 2001.
On behalf of the directors
___________________________
Mr Hugh Alsop
Non-Executive Director
30 August 2023
Melbourne, Victoria
=
Liability limited by a scheme approved under Professional Standards Legislation
PO Box 1908
West Perth WA 6872
Australia
Level 2, 40 Kings Park Road
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
Stantons Is a member of the Russell
Bedford International network of firms
30 August 2023
Board of Directors
Dimerix Limited
425 Smith St
Fitzroy, Victoria 3065
Dear Directors
In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following
declaration of independence to the directors of Dimerix Limited.
As Audit Director for the audit of the financial statements of Dimerix Limited for the year ended 30 June
2023, I declare that to the best of my knowledge and belief, there have been no contraventions of:
(i)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(ii)
any applicable code of professional conduct in relation to the audit.
Yours sincerely
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
(An Authorised Audit Company)
Samir Tirodkar
Director
32
Liability limited by a scheme approved under Professional Standards Legislation
PO Box 1908
West Perth WA 6872
Australia
Level 2, 40 Kings Park Road
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
Stantons Is a member of the Russell
Bedford International network of firms
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
DIMERIX LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Dimerix Limited (“the Company”) and its subsidiary
(collectively, “the Group”), which comprises the consolidated statement of financial position as at 30
June 2023, the consolidated statement of profit or loss and other comprehensive income, the
consolidated statement of changes in equity and the consolidated statement of cash flows for the
year then ended, and notes to the financial statements, including a summary of significant accounting
policies, and the directors' declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations
Act 2001, including:
(i)
giving a true and fair view of the Group’s financial position as at 30 June 2023 and of its
financial performance for the year then ended; and
(ii)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor's Responsibilities for the Audit of the Financial
Report section of our report. We are independent of the Company in accordance with the auditor
independence requirements of the Corporations Act 2001 and the ethical requirements of the
Accounting Professional and Ethical Standards Board's APES 110: Code of Ethics for Professional
Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have
also fulfilled our other ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has
been given to the directors of the Company, would be in the same terms if given to the directors as
at the time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
33
Material Uncertainty in Relation to Going Concern
We draw attention to Note 2.4 in the consolidated financial statements, which indicates that the Group
incurred a net loss after tax of $13,802,819 and had a net cash outflow from operations of
$12,728,659 during the financial year ended 30 June 2023. These events or conditions, along with
other matters, as set forth in Note 2.4, indicate that a material uncertainty exists that may cast
significant doubt on the Group’s ability to continue as a going concern.
Our opinion is not modified with respect to this matter.
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 period. These matters were addressed in the context
of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.
Key Audit Matters
How the matters were addressed in the
audit
Accounting for Research and
Development tax incentives
The
Group
obtains
Research
and
Development (“R&D”) tax incentive payments
from the Australian Government that reduces
the net overall cost incurred by the Group
with respect to its R&D activities. During the
year, the Group recognised R&D tax
incentives and a corresponding receivable of
$8,934,637 under the relevant scheme for the
2023 financial year. (Refer to Note 6 to the
consolidated
financial
statements.
The
accounting policy is outlined in Note 2.6).
Accounting for R&D tax incentives is
considered a key audit matter because of the
judgment
involved
in
assessing
the
appropriate quantum of R&D tax incentive to
be recognised based on the eligibility rules
and
regulations
governing
these
tax
incentives.
Inter alia, our audit procedures included the
following:
i.
Developed an understanding of the
government eligibility requirements for
obtaining the R&D tax incentive and the
basis used by the Group to recognise this
incentive;
ii. Tested samples of expenditure including
employee costs allocated by the Group to
R&D
activities
to
supporting
documentation;
iii. Compared the R&D tax incentive amounts
recorded by the Group and subsequently
received relating to the 2022 financial year
to supporting documentation;
iv. Compared the Group’s calculations of the
R&D tax incentive to the prior year
approved R&D tax incentive calculations;
and
v. Evaluated
the
adequacy
of
the
disclosures made by the Group in the
consolidated financial report in view of the
requirements of the Australian Accounting
Standards.
Accounting for convertible notes
As disclosed in Note 13 to the consolidated
financial statements, during the year, the
Inter alia, our audit procedures included the
following:
34
Key Audit Matters
How the matters were addressed in the
audit
Group issued 3,850,000 convertible notes to
Mercer Street Global Opportunity Fund LLC
(“Mercer”) with a face value of $1.00. Total
proceeds received by the Group amounted to
$3,500,000
after
10%
discount
in
accordance with the agreement.
Accounting for the convertible note was
considered a key audit matter due to:
▪
the complexity involved in assessing
whether to account for the notes as
equity, a liability, or a combination of
both;
▪
measurement at the initial recognition of
the individual components of the liability
based on the terms and conditions of the
agreement and the significant judgment
in determining the fair value of the
separate components of the liability; and
▪
measurement
subsequent
to
initial
recognition including the fair value
measurement at balance date.
i.
Obtained an understanding of and
assessed the terms and conditions of the
convertible note agreement to determine
if the convertible notes are to be
accounted for as equity, liability or a
combination of both;
ii. Obtained
and
reviewed
the
appropriateness and reasonableness of
the valuation methodology used by the
Group, including the inputs used in the
valuation against the requirements of the
relevant
Australian
Accounting
Standards;
iii. Assessed
and
evaluated
the
competence, capabilities and objectivity
of
the
management’s
expert
and
determined that the work is adequate for
our purposes;
iv. Recalculated the fair value of the
instrument
at
inception,
and
its
subsequent measurement as at balance
date; and
v. Assessed
the
adequacy
of
the
disclosures in accordance with the
applicable accounting standards.
Other Information
The directors are responsible for the other information. The other information comprises the
information included in the Group’s annual report for the year ended 30 June 2023 but does not
include the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly, we do not
express any form of assurance opinion 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.
35
In preparing the financial report, the directors are responsible for assessing the ability of the Group
to continue as a going concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless the directors either intend to liquidate the Group or to
cease operations, or has no realistic alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor's report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
As part of an audit in accordance with Australian Auditing Standards, we exercise professional
judgement and maintain professional scepticism throughout the audit. An audit involves performing
procedures to obtain audit evidence about the amounts and disclosures in the financial report.
The procedures selected depend on the auditor's judgement, including the assessment of the risks
of material misstatement of the financial report, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entity's preparation of the financial
report that gives a true and fair view in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's
internal control.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by the Directors, as well as evaluating the overall
presentation of the financial report.
We conclude on the appropriateness of the Directors' use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are required to draw attention in our auditor's
report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify
our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause the Group to cease to continue as a going
concern.
We evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and events in a
manner that achieves fair presentation.
We obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the financial report. We are responsible
for the direction, supervision and performance of the group audit. We remain solely responsible for
our audit opinion.
36
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.
From the matters communicated with the Directors, we determine those matters that were of most
significance in the audit of the financial report of the current period and are therefore key audit
matters. We describe these matters in our auditor's report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included on pages 25 to 31 of the directors’ report for the
year ended 30 June 2023.
In our opinion, the Remuneration Report of Dimerix Limited for the year ended 30 June 2023
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our
responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in
accordance with Australian Auditing Standards.
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
(An Authorised Audit Company)
Samir Tirodkar
Director
West Perth, Western Australia
30 August 2023
37
Dimerix Limited and controlled entity
Directors' declaration
30 June 2023
38
In the directors' opinion:
●
the attached consolidated financial statements and notes comply with the Corporations Act 2001, the
Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting
requirements;
●
the attached consolidated financial statements and notes comply with International Financial Reporting
Standards as issued by the International Accounting Standards Board as described in Note 2 to the
financial statements;
●
the attached consolidated financial statements and notes give a true and fair view of the Group's
financial position as at 30 June 2023 and of its performance for the financial year ended on that date;
and
●
there are reasonable grounds to believe that the Group will be able to pay its debts as and when they
become due and payable.
The directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of directors made pursuant to section 295(5) of the Corporations Act
2001.
On behalf of the directors
___________________________
Mr Hugh Alsop
Non-Executive Director
30 August 2023
Melbourne, Victoria
Dimerix Limited and controlled entity
Consolidated statement of profit or loss and other comprehensive income
For the year ended 30 June 2023
Note 30 June 2023
30 June 2022
$
$
The above consolidated statement of profit or loss and other comprehensive income should be read in
conjunction with the accompanying notes
39
Continuing operations
Revenue
5
36,787
2,368
Other Income
6
8,983,737
6,463,455
Expenses
Research and development expenses
(20,473,575)
(14,389,424)
Corporate administration expenses
7
(2,283,714)
(2,437,136)
Share-based payment expenses
22
(66,054)
(129,842)
(Loss) before income tax expense
(13,802,819)
(10,490,579)
Income tax expense
8
-
-
(Loss) after income tax expense for the year attributable to the
owners of Dimerix Limited
19
(13,802,819)
(10,490,579)
Other comprehensive income for the year, net of tax
-
-
Total comprehensive (loss) for the year attributable to the
owners of Dimerix Limited
(13,802,819)
(10,490,579)
Cents
Cents
Basic and diluted (loss) per share
9
(4.24)
(3.56)
Dimerix Limited and controlled entity
Consolidated statement of financial position
As at 30 June 2023
Note 30 June 2023
30 June 2022
$
$
The above consolidated statement of financial position should be read in conjunction with the
accompanying notes
40
Assets
Current assets
Cash and cash equivalents
25
7,991,792
9,629,756
Trade, other receivables and prepayments
10
9,737,851
6,785,690
Right-of-use asset
11
21,457
72,973
Total current assets
17,751,100
16,488,419
Non-current assets
Property, plant and equipment
12
6,413
8,607
Total non-current assets
6,413
8,607
Total assets
17,757,513
16,497,026
Liabilities
Current liabilities
Trade and other payables
13
5,665,700
1,862,688
Borrowings
14
5,935,860
-
Lease liabilities
11
21,949
52,117
Provisions
15
132,786
108,838
Total current liabilities
11,756,295
2,023,643
Non-current liabilities
Lease liabilities
11
-
20,982
Provisions
15
38,099
29,761
Total non-current liabilities
38,099
50,743
Total liabilities
11,794,394
2,074,386
Net assets
5,963,119
14,422,640
Equity
Issued capital
17
55,489,363
50,895,134
Reserves
18
2,574,721
1,825,652
Accumulated losses
19
(52,100,965)
(38,298,146)
Total equity
5,963,119
14,422,640
Dimerix Limited and controlled entity
Consolidated statement of changes in equity
For the year ended 30 June 2023
The above consolidated statement of changes in equity should be read in conjunction with the
accompanying notes
41
Issued
Accumulated
Total equity
capital
Reserves
Losses
$
$
$
$
Balance at 1 July 2021
28,389,114
886,952
(27,807,567)
1,468,499
Loss after income tax expense for the
year
-
-
(10,490,579)
(10,490,579)
Other comprehensive income for the
year, net of tax
-
-
-
-
Total comprehensive loss for the year
-
-
(10,490,579)
(10,490,579)
Issue of ordinary shares
24,554,874
-
-
24,554,874
Share issue costs (Note 17)
(2,048,854)
-
-
(2,048,854)
Recognition of share-based payments
(Note 18)
-
938,700
-
938,700
Balance at 30 June 2022
50,895,134
1,825,652
(38,298,146)
14,422,640
Issued
Accumulated
Total equity
capital
Reserves
Losses
$
$
$
$
Balance at 1 July 2022
50,895,134
1,825,652
(38,298,146)
14,422,640
Loss after income tax expense for the
year
-
-
(13,802,819)
(13,802,819)
Other comprehensive income for the
year, net of tax
-
-
-
-
Total comprehensive loss for the year
-
-
(13,802,819)
(13,802,819)
Issue of ordinary shares
5,356,080
-
-
5,356,080
Share issue costs (Note 17)
(761,851)
-
-
(761,851)
Options issued as part of convertible
notes (Note 14)
-
479,001
-
479,001
Recognition of share-based payments
(Note 18)
-
270,068
-
270,068
Balance at 30 June 2023
55,489,363
2,574,721
(52,100,965)
5,963,119
Dimerix Limited and controlled entity
Consolidated statement of cash flows
For the year ended 30 June 2023
Note
2023
2022
$
$
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes
42
Cash flows from operating activities
Receipt of Research and Development tax refund
6,032,644
3,695,562
Other government grants and incentives
50,330
473,893
Payments to suppliers and employees
(18,848,420)
(17,607,760)
Interest received
36,787
2,368
Net cash (used in) operating activities
25
(12,728,659)
(13,435,937)
Cash flows from investing activities
Payments for property, plant and equipment
12
(2,299)
(10,614)
Net cash (used in) investing activities
(2,299)
(10,614)
Cash flows from financing activities
Proceeds from issue of shares
17
5,224,830
20,499,874
Proceeds from exercise of options
17
-
180,000
Proceeds from issue of convertible notes
14
3,500,000
-
Proceeds from borrowings
14
2,842,500
-
Payment for share issue costs
(444,614)
(1,240,006)
Interest and other finance costs paid
(1,845)
-
Repayment of borrowings and interest on borrowings
-
(1,700,000)
Repayment of lease liability
11
(51,686)
(47,433)
Payment of other finance costs
-
(1,398)
Net cash provided by financing activities
11,069,185
17,691,037
Net (decrease)/increase in cash and cash equivalents
(1,661,773)
4,244,486
Cash and cash equivalents at the beginning of the financial year
9,629,756
5,250,094
Effects of exchange rate changes on cash and cash equivalents
23,809
135,176
Cash and cash equivalents at the end of the financial year
25
7,991,792
9,629,756
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2023
43
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. Significant accounting policies
2.1 Statement of compliance
These consolidated financial statements are general purpose financial statements which have been
prepared in accordance with the Corporations Act 2001, Accounting Standards and Interpretations and
comply with other requirements of the law.
The consolidated financial statements comprise the financial statements of the Group. For the purposes of
preparing the financial statements, the Group is a for-profit entity.
Accounting Standards include Australian Accounting Standards. Compliance with Australian Accounting
Standards ensures that the financial statements and notes of the Group comply with International Financial
Reporting Standards (“IFRS”).
The consolidated financial statements were authorised for issue by the directors on 29 August 2023.
2.2 Basis of preparation
The consolidated financial statements have been prepared on the basis of historical cost, except for certain
financial instruments that are measured at revalued amounts or fair values at the end of each reporting
period, as explained in the accounting policies below.
Historical cost is generally based on the fair values of the consideration given in exchange for goods and
services. The financial statements have been prepared on a going concern basis. All amounts are presented
in Australian dollars, unless otherwise noted.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date, regardless of whether that price is
directly observable or estimated using another valuation technique. In estimating the fair value of an asset
or liability, the Group takes into account the characteristics of the asset or liability at the measurement date.
Fair value for measurement and/or disclosure purposes in these financial statements is determined on such
a basis, except for share-based payment transactions that are within the scope of AASB 2, leasing
transactions that are within the scope of AASB 16 and measurements that have some similarities to fair
value but are not fair value, such as net realisable value in AASB 2 or value in use in AASB 136.
In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2 or 3
based on the degree to which inputs to the fair value measurements are observable and the significance of
the inputs to the fair value measurement in its entirety, which are described as follows:
●
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.
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2023
2. Significant accounting policies (continued)
44
2.3 Business combinations
Acquisitions of business are accounted for using the acquisition method. The consideration transferred in a
business combination is measured at fair value which is calculated as the sum of the acquisition-date fair
values of assets transferred by the Company, liabilities incurred by the Company to the former owners of
the acquiree and the equity instruments issued by the Company in exchange for control of the acquiree.
Acquisition-related costs are recognised in profit or loss as incurred.
At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognised at their
fair value, except that:
●
deferred tax assets or liabilities and assets or liabilities related to employee benefit arrangements are
recognised and measured in accordance with AASB 112 ‘Income Taxes’ and AASB 119 ‘Employee
Benefits’ respectively.
●
liabilities or equity instruments related to share-based payment arrangements of the acquiree or share-
based payment arrangements of the Company entered into to replace share-based payment
arrangements of the acquiree are measured in accordance with AASB 2 ‘Share-based Payment’ at the
acquisition date; and
●
assets (or disposal groups) that are classified as held for sale in accordance with AASB 5 ‘Non-current
Assets Held for Sale and Discontinued Operations’ are measured in accordance with that Standard.
Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-
controlling interests in the acquiree, and the fair value of the acquirer's previously held equity interest in
the acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and
the liabilities assumed. If, after reassessment, the net of the acquisition-date amounts of the identifiable
assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount of
any non-controlling interests in the acquiree and the fair value of the acquirer's previously held interest in
the acquiree (if any), the excess is recognised immediately in profit or loss as a bargain purchase gain.
Where the consideration transferred by the Company in a business combination includes assets or liabilities
resulting from a contingent consideration arrangement, the contingent consideration is measured at its
acquisition-date fair value. Changes in the fair value of the contingent consideration that qualify as
measurement period adjustments are adjusted retrospectively, with corresponding adjustments against
goodwill. Measurement period adjustments are adjustments that arise from additional information
obtained during the ‘measurement period’ (which cannot exceed one year from the acquisition date) about
facts and circumstances that existed at the acquisition date. The subsequent accounting for changes in the
fair value of contingent consideration that do not qualify as measurement period adjustments depends on
how the contingent consideration is classified.
Contingent consideration that is classified as equity is not remeasured at subsequent reporting dates and
its subsequent settlement is accounted for within equity.
Contingent consideration that is classified as an asset or liability is remeasured at subsequent reporting
dates in accordance with AASB 9, or AASB 137 ‘Provisions, Contingent Liabilities and Contingent Assets’, as
appropriate, with the corresponding gain or loss being recognised in profit or loss.
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2023
2. Significant accounting policies (continued)
45
If the initial accounting for a business combination is incomplete by the end of the reporting period in which
the combination occurs, the Company reports provisional amounts for the items for which the accounting
is incomplete. Those provisional amounts are adjusted during the measurement period (see above), or
additional assets or liabilities are recognised, to reflect new information obtained about facts and
circumstances that existed as of the acquisition date that, if known, would have affected the amounts
recognised as of that date.
2.4 Going concern
The consolidated financial statements have been prepared on the going concern basis which contemplates
the continuity of normal business activity and the realisation of assets and the settlement of liabilities in the
normal course of business.
For the year ended 30 June 2023 the Group incurred a loss after tax of $13,802,819 (30 June 2022:
$10,490,579) and a net cash outflow from operations of $12,728,659 (30 June 2022: $13,435,937). At 30
June 2023, the Group had current assets of $17,751,100 (30 June 2022: $16,488,419), current liabilities of
$11,756,295 (30 June 2022: $2,023,643) and current cash holding was $7,991,792 (30 June 2022:
$9,629,756). Commitment expenditure is disclosed in Note 26.
The ability of the company to continue as a going concern is principally dependent upon the ability of the
company to secure funds, which could arise from a combination of executing a transaction, raising capital
from equity markets or other funding sources. These conditions indicate a material uncertainty that may
cast significant doubt about the ability of the company to continue as a going concern.
The directors have prepared a cash flow forecast, which indicates that the company will be required to
obtain additional capital in order to have sufficient cash flows to meet all commitments and working
capital requirements for the 12 month period from the date of signing this financial report.
Based on the cash flow forecasts and other factors referred to above, the directors are satisfied that the
going concern basis of preparation is appropriate. 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 consolidated financial statements. The
consolidated financial statements do not include any adjustments relating to the recoverability and
classification of liabilities that may be necessary should the Group be unable to continue as a going concern.
2.5 Goodwill
Goodwill arising on an acquisition of a business is carried at cost as established at the date of the acquisition
of the business (see 2.3 above) less accumulated impairment losses, if any. For the purposes of impairment
testing, goodwill is allocated to each of the Group’s cash-generating units (or groups of cash-generating
units) that is expected to benefit from the synergies of the combination.
A cash-generating unit to which goodwill has been allocated is tested for impairment annually, or more
frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-
generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying
amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata based on the
carrying amount of each asset in the unit. Any impairment loss for goodwill is recognised directly in profit
or loss. An impairment loss recognised for goodwill is not reversed in subsequent periods.
On disposal of the relevant cash-generating unit, the attributable amount of goodwill is included in the
determination of the profit or loss on disposal.
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2023
2. Significant accounting policies (continued)
46
2.6 Revenue recognition
Under AASB15 'Revenue from Contracts with Customers', revenue is recognised when a performance
obligation is satisfied, being when control of the goods or services underlying the performance obligation is
transferred to the customer.
Interest income
Interest income from a financial asset is recognised when it is probable that the economic benefits will flow
to the Group and the amount of revenue can be measured reliably.
Research and Development Incentive
These are accounted on an accrual basis once it is probable that it will be received.
Government grants
Government grants are not recognised until there is reasonable assurance that the Group will comply with
the conditions attaching to them and that the grants will be received.
Government grants are recognised in profit or loss on a systematic basis over the periods in which the Group
recognises as expenses the related costs for which the grants are intended to compensate. Specifically,
government grants whose primary condition is that the Group should purchase, construct or otherwise
acquire non-current assets are recognised as deferred revenue in the statement of financial position and
transferred to profit or loss on a systematic and rational basis over the useful lives of the related assets.
Government grants that are receivable as compensation for expenses or losses already incurred or for the
purpose of giving immediate financial support to the Group with no future related costs are recognised in
profit or loss in the period in which they become receivable.
2.7 Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets,
which are assets that necessarily take a substantial period to get ready for their intended use or sale, are
added to the cost of those assets, until such time as the assets are substantially ready for their intended use
or sale.
Investment income earned on the temporary investment of specific borrowings pending their expenditure
on qualifying assets is deducted from the borrowing costs eligible for capitalisation.
All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
2.8 Taxation
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit before tax
as reported in the statement of profit or loss and other comprehensive income because of items of income
or expense that are taxable or deductible in other years and items that are never taxable or deductible. The
Group’s current tax is calculated using the tax rates that have been enacted or substantively enacted by the
end of the reporting period.
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2023
2. Significant accounting policies (continued)
47
Deferred tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities
in the consolidated financial statements and the corresponding tax bases used in the computation of taxable
profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax
assets are generally recognised for all deductible temporary differences to the extent that it is probable that
taxable profits will be available against which those deductible temporary differences can be utilised. Such
deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial
recognition (other than in a business combination) of assets and liabilities in a transaction that affects
neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognised if
the temporary difference arises from the initial recognition of goodwill.
Deferred tax liabilities are recognised for taxable temporary differences associated with investments in
subsidiaries and associates, and interests in joint ventures, except where the Group is able to control the
reversal of the temporary difference and it is probable that the temporary difference will not reverse in the
foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such
investments and interests are only recognised to the extent that it is probable that there will be sufficient
taxable profits against which to utilise the benefits of the temporary differences and they are expected to
reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to
the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of
the asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in
which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted
or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and
assets reflects the tax consequences that would follow from the manner in which the Group expects, at the
end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax liabilities and assets are offset when there is a legally enforceable right to set off current tax
assets against current tax liabilities and when they relate to income taxes levied by the same authority and
the Group intends to settle its current tax assets and liabilities on a net basis.
Current and deferred tax for the year
Current and deferred tax are recognised in profit or loss, except when they relate to items that are
recognised in other comprehensive income or directly in equity, in which case the current and deferred tax
are also recognised in other comprehensive income or directly in equity, respectively.
Where current tax or deferred tax arises from the initial accounting for a business combination, the tax
effect is included in the accounting for the business combination.
2.9 Intangible assets
Intangible assets acquired in a business combination
Intangible assets acquired in a business combination and recognised separately from goodwill are initially
recognised at their fair value at the acquisition date (which is regarded as their cost).
Subsequent to initial recognition, intangible assets acquired in a business combination are reported at cost
less accumulated amortisation and accumulated impairment losses, on the same basis as intangible assets
that are acquired separately.
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2023
2. Significant accounting policies (continued)
48
Derecognition of intangible assets
An intangible asset is derecognised on disposal, or when no future economic benefits are expected from
use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference
between the net disposal proceeds and the carrying amount of the asset are recognised in profit or loss
when the asset is derecognised.
Impairment of tangible and intangible assets other than goodwill
At the end of each reporting period, the Group reviews the carrying amounts of its tangible and intangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If
any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent
of the impairment loss (if any). When it is not possible to estimate the recoverable amount of an individual
asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.
When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated
to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating
units for which a reasonable and consistent allocation basis can be identified.
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for
impairment at least annually, and whenever there is an indication that the asset may be impaired.
Recoverable amount is the higher of fair value less cost of disposal and value in use. In assessing value in
use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that
reflects current market assessments of the time value of money and the risks specific to the asset for which
the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying
amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount.
An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a
revalued amount, in which case the impairment loss is treated as a revaluation decrease.
2.10 Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation and accumulated
impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets (other than freehold land and
properties under construction) less their residual values over their useful lives, using the straight-line
method. The estimated useful lives, residual values and depreciation method are reviewed at the end of
each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.
An item of property, plant and equipment is derecognised upon disposal or when no future economic
benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal
or retirement of an item of property, plant and equipment is determined as the difference between the
sales proceeds and the carrying amount of the asset and is recognised in profit and loss.
2.11 Borrowings
Loans and borrowings are initially recognised at the fair value of the consideration received, net of
transaction costs. They are subsequently measured at amortised cost using the effective interest method.
The component of the convertible notes that exhibits characteristics of a liability is recognised as a liability
in the consolidated statement of financial position, net of transaction costs.
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2023
2. Significant accounting policies (continued)
49
On the issue of the convertible notes the fair value of the liability component is determined using a market
rate for an equivalent non-convertible bond and this amount is carried as a non-current liability on the
amortised cost basis until extinguished on conversion or redemption. The increase in the liability due to the
passage of time is recognised as a finance cost. The remainder of the proceeds are allocated to the
conversion option that is recognised and included in shareholders equity as a convertible note reserve, net
of transaction costs. The carrying amount of the conversion option is not remeasured in the subsequent
years. The corresponding interest on convertible notes is expensed to profit or loss.
Conversion features that fail the equity classification are accounted for as derivative liabilities.
2.12 Provisions
Provisions are recognised when the consolidated entity has a present (legal or constructive) obligation as a
result of a past event, it is probable the consolidated entity will be required to settle the obligation, and a
reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present
obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding
the obligation. When a provision is measured using the cash flows estimated to settle the present obligation,
its carrying amount is the present value of those cash flows (where the effect of the time value of money is
material).
When some or all of the economic benefits required to settle a provision are expected to be recovered from
a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be
received and the amount of the receivable can be measured reliably.
2.13 Employee benefits
Short-term employee benefits
A liability is recognised for benefits accrued to employees in respect of wages and salaries and annual leave
when it is probable that settlement will be required and they are capable of being measured reliably.
Liabilities recognised in respect of short-term employee benefits are measured at their nominal values using
the remuneration rate expected to apply at the time of settlement.
Liabilities recognised in respect of long-term employee benefits are measured as the present value of the
estimated future cash outflows to be made by the Group in respect of services provided by employees up
to reporting date.
Other long-term employee benefits
The liability for annual leave and long service leave not expected to be settled within 12 months of the
reporting date are measured at the present value of expected future payments to be made in respect of
services provided by employees up to the reporting date using the projected unit credit method.
Consideration is given to expected future wage and salary levels, experience of employee departures and
periods of service. Expected future payments are discounted using market yields at the reporting date on
high quality corporate bonds with terms to maturity and currency that match, as closely as possible, the
estimated future cash outflows.
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2023
2. Significant accounting policies (continued)
50
2.14 Share-based payments arrangements
Equity-settled share-based payments to employees and others providing similar services are measured at
the fair value of the equity instruments at the grant date. Details regarding the determination of the fair
value of equity-settled share-based transactions are set out in Note 22.
The fair value determined at the grant date of the equity-settled share-based payments is expensed on a
straight-line basis over the vesting period, based on the Group’s estimate of equity instruments that will
eventually vest, with a corresponding increase in equity. At the end of each reporting period, the Group
revises its estimate of the number of equity instruments expected to vest. The impact of the revision of the
original estimates, if any, is recognised in profit or loss such that the cumulative expense reflects the revised
estimate, with a corresponding adjustment to the equity-settled employee benefits reserve.
Equity-settled share-based payment transactions with parties other than employees are measured at the
fair value of the goods or services received, except where that fair value cannot be estimated reliably, in
which case they are measured at the fair value of the equity instruments granted, measured at the date the
entity obtains the goods or the counterparty renders the service.
For cash-settled share-based payments, a liability is recognised for the goods or services acquired, measured
initially at the fair value of the liability. At the end of each reporting period until the liability is settled, and
at the date of settlement, the fair value of the liability is remeasured, with any changes in fair value
recognised in profit or loss for the year.
2.15 Financial instruments
Recognition, initial measurement and derecognition
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual
provisions of the financial instrument. Financial instruments (except for trade receivables) are measured
initially at fair value adjusted by transactions costs, except for those carried “at fair value through profit or
loss”, in which case transaction costs are expensed to profit or loss. Where available, quoted prices in an
active market are used to determine the fair value. In other circumstances, valuation techniques are
adopted. Subsequent measurement of financial assets and financial liabilities are described below.
Trade receivables are initially measured at the transaction price if the receivables do not contain a significant
financing component in accordance with AASB 15.
Financial assets are derecognised when the contractual rights to the cash flows from the financial asset
expire, or when the financial asset and all substantial risks and rewards are transferred. A financial liability
is derecognised when it is extinguished, discharged, cancelled or expires.
Classification and subsequent measurement
Financial assets
Except for those trade receivables that do not contain a significant financing component and are measured
at the transaction price in accordance with AASB 15, all financial assets are initially measured at fair value
adjusted for transaction costs (where applicable).
For the purpose of subsequent measurement, financial assets other than those designated and effective as
hedging instruments, are classified into the following categories upon initial recognition:
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2023
2. Significant accounting policies (continued)
51
●
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.
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.
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2023
2. Significant accounting policies (continued)
52
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, borrowings and lease liability are financial liabilities measured at
amortised cost.
Impairment
The Group assesses on a forward-looking basis the expected credit losses associated with its debt
instruments carried at amortised cost and FVOCI. The impairment methodology applied depends on
whether there has been a significant increase in credit risk.
For trade receivables, the Group applies the simplified approach permitted by AASB, which requires
expected lifetime losses to be recognised from initial recognition of the receivables.
2.16 Goods and Services Tax
Revenues, expenses and assets are recognised net of the amount of GST, except:
(i) where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as part
of the cost of acquisition of an asset or as part of an item of expense; or
(ii) for receivables and payables which are recognised inclusive of GST.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of
receivables or payables.
Cash flows are included in the cash flow statement on a gross basis. The GST component of cash flows arising
from investing and financing activities which is recoverable from, or payable to, the taxation authority is
classified within operating cash flows.
2.17 New and Amended Accounting Policies Adopted by the Group
The Group has adopted all of the new or amended Accounting Standards and Interpretations issued by the
Australia Accounting Standards Board ('AASB') that are mandatory for the current reporting period. Any
new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early
adopted.
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2023
2. Significant accounting policies (continued)
53
AASB 2020-3: Amendments to Australian Accounting Standards – Annual Improvements 2018–2020 and
Other Amendments
The Entity adopted AASB 2020-3 which makes some small amendments to a number of standards including
the following: AASB 1, AASB 3, AASB 9, AASB 116, AASB 137 and AASB 141.
The adoption of the amendment did not have a material impact on the financial statements.
AASB 2021-7a: Amendments to Australian Accounting Standards – Effective Date of Amendments to AASB
10 and AASB 128 and Editorial Corrections
AASB 2020-7a makes various editorial corrections to a number of standards effective for reporting periods
beginning on or after 1 January 2022. The adoption of the amendment did not have a material impact on
the financial statements
2.17.1 Other standards not yet applicable
AASB 2020-1: Amendments to Australian Accounting Standards – Classification of Liabilities as Current or
Non-current
The amendment amends AASB 101 to clarify whether a liability should be presented as current or non-
current. The Group plans on adopting the amendment for the reporting period ending 30 June 2024. The
amendment is not expected to have a material impact on the financial statements once adopted.
AASB 2020-3: Amendments to Australian Accounting Standards – Annual Improvements 2018-2020 and
Other Amendments
AASB 2020-3: Amendments to Australian Accounting Standards – Annual Improvements 2018-2020 and
Other Amendments is an omnibus standard that amends AASB 1, AASB 3, AASB 9, AASB 116, AASB 137 and
AASB 141. The Group plans on adopting the amendment for the reporting period ending 30 June 2023. The
impact of the initial application is not yet known.
AASB 2021-2: Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and
Definition of Accounting Estimates
The amendment amends AASB 7, AASB 101, AASB 108, AASB 134 and AASB Practice Statement 2. These
amendments arise from the issuance by the IASB of the following International Financial Reporting
Standards: Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2) and
Definition of Accounting Estimates (Amendments to IAS 8).
The Group plans on adopting the amendment for the reporting period ending 30 June 2024. The impact of
the initial application is not yet known.
AASB 2021-5: Amendments to Australian Accounting Standards – Deferred Tax related to Assets and
Liabilities arising from a Single Transaction
The amendment amends the initial recognition exemption in AASB 112: Income Taxes such that it is not
applicable to leases and decommissioning obligations – transactions for which companies recognise both
an asset and liability and that give rise to equal taxable and deductible temporary differences. The Group
plans on adopting the amendment for the reporting period ending 30 June 2024. The impact of the initial
application is not yet known.
There are no other standards that are not yet effective and that would be expected to have a material
impact on the Group in the current or future reporting periods and on foreseeable future transactions.
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2023
54
3. Critical accounting judgements, estimates and assumptions
In the application of the Group’s accounting policies, which are described in Note 2, the directors of the
Group are required to make judgements, estimates and assumptions about the carrying amounts of assets
and liabilities that are not readily apparent from other sources. The estimates and associated assumptions
are based on historical experience and other factors that are considered to be relevant. Actual results may
differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period on which the estimate is revised if the revision affects only that
period, or in the period in the revision and future periods if the revision affects both current and future
periods.
In preparing these financial statements, the significant judgements were made by management in applying
the Group’s accounting policies and the key sources of estimation uncertainty.
3.1 Other key sources of estimation uncertainty
●
Valuation of share options issued to management, staff and consultants.
●
Determination of expenses eligible for research and development tax incentive.
●
The potential deferred tax asset arising from the tax losses and temporary differences have not been
recognised as an asset because recovery of the tax losses is not yet considered probable.
●
Valuation of convertible notes.
4. Operating segments
From the period beginning 1 July 2016 the Board considers that the Group has only operated in one
Segment, being investment in research and development of biopharmaceutical drugs. The financial
information presented in the consolidated statement of financial profit or loss and other comprehensive
income and consolidated statement of financial position represents the information for the business
segment.
5. Revenue
2023
2022
$
$
Interest received
36,787
2,368
6. Other Income
2023
2022
$
$
Research & Development tax incentive
8,934,637
6,032,644
Other government incentives1
49,100
430,811
8,983,737
6,463,455
1In 2023 $12,500 was received in relation to the MTP Connect BTB Grant (2022: $430,811).
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2023
55
7. Corporate administration expenses
Loss for the year has been arrived at after charging the following items of expenses:
2023
2022
$
$
Company secretary fees
24,000
24,000
Depreciation and amortisation
56,009
50,545
Directors renumeration
193,201
243,600
Salary and wages
353,045
596,511
Rental expense
3,035
900
Legal and professional fees
57,204
46,734
Share registry fees
44,617
57,069
Insurance expenses
177,837
182,024
Other administration expenses
1,374,766
1,235,753
2,283,714
2,437,136
8. Income tax expense
8.1 Income tax recognised in profit and loss
2023
2022
$
$
Current tax benefit
(343,548)
(536,824)
Deferred tax expense
(120,133)
(116,936)
Tax losses not recognised
463,681
653,760
Total Tax expense/(benefit)
-
-
2023
2022
$
$
Numerical reconciliation of income tax expense and tax at the statutory
rate
Loss before income tax expense
(13,802,819)
(10,490,579)
Tax at the statutory tax rate of 25%
(3,450,705)
(2,622,645)
Tax effect amounts which are not deductible/(taxable) in calculating
taxable income:
Non-deductible expenses
5,220,683
3,477,046
Non-assessable income
(2,233,659)
(1,508,161)
Effect of unused tax losses not recognised as deferred tax assets
463,681
653,760
Income tax expense
-
-
The tax rate used for the reconciliation above is the corporate tax rate of 25.00% (30 June 2022: 25.00%)
payable by Australian corporate entities on taxable profits under Australian tax law.
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2023
8. Income tax expense (continued)
56
The Group has no franking credits available for recovery in future years.
8.2 Income tax recognised directly in equity
30 June 2023
30 June 2022
$
$
Current tax
Share issue costs
116,439
106,608
Deferred tax
Share issue costs deductible over 5 years
16,394
7,462
132,833
114,070
8.3 Unrecognised deferred tax assets
30 June 2023
30 June 2022
$
$
Unused tax losses for which no deferred tax assets have been
recognised
4,987,547
4,309,834
Temporary differences
486,711
(262,180)
All unused tax losses were incurred by Australian entities.
This benefit for tax losses will only be obtained if the specific entity carrying forward the tax losses derives
future assessable income of a nature and of an amount sufficient to enable the benefit from the deductions
for the losses to be realised, and the Group complies with the conditions for deductibility imposed by tax
legislation.
9. Basic and diluted loss per share
2023
2022
Basic and diluted (loss) per share (cents per share)
(4.24)
(3.56)
The loss and weighted average number of ordinary shares used in the calculation of basic earnings per share
are as follows:
2023
2022
$
$
(Loss) after income tax attributable to the owners of Dimerix Limited
(13,802,819)
(10,490,579)
2023
2022
Weighted average number of ordinary shares for the purposes of basic
and diluted loss per share
325,529,108
294,310,625
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2023
9. Basic and diluted loss per share (continued)
57
There is no dilution of shares due to options and the convertible notes therefore options and convertible
notes are not included in the calculation of diluted loss per share.
10. Trade, other receivables and prepayments
30 June 2023
30 June 2022
$
$
Other receivables
9,553,543
6,385,126
Prepayments
184,308
400,564
9,737,851
6,785,690
The other receivables at the reporting date include Research and Development tax incentive of $8,934,637
(30 June 2022: $6,032,644). This amount is based on criteria of eligible expenditure set out by AusIndustry.
At the reporting date, none of the receivables are past due or impaired.
The prepayments at 30 June 2023 includes the amount of $15,899 (30 June 2022: $206,689) in relation to
the public and investor relations services to be provided by S3 Consortium Pty Ltd that was paid through
the issuance of 1,875,000 shares in the financial year ended 30 June 2022 (Note 17). The agreement is for a
period of 24 months with effect from August 2021.
11. Right-of-use asset and lease liability
11.1 Right-of-use asset
30 June 2023
30 June 2022
$
$
Land and buildings - on initial recognition
77,266
77,266
Less: Accumulated depreciation
(55,809)
(4,293)
Carrying value at end of period
21,457
72,973
11.2 Lease liability
30 June 2023
30 June 2022
$
$
Current
Property Lease Liability
21,949
52,117
Non-current
Property Lease Liability
-
20,982
Total Lease Liability
21,949
73,099
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2023
11. Right-of-use asset and lease liability (continued)
58
30 June 2023
30 June 2022
$
$
Depreciation - right of use asset
51,516
47,116
Interest expense - lease liability
1,982
1,160
Lease payments during the year
53,040
48,420
30 June 2023
30 June 2022
$
$
Reconciliation of carrying amount of right-of-use asset
Carrying value at the beginning of the year
72,973
42,823
Additions / lease inception
-
77,266
Depreciation
(51,516)
(47,116)
Carrying value at end of year
21,457
72,973
Option to extend or terminate
The Group uses hindsight in determining the lease term where the contract contains options to extend or
terminate the lease.
Property lease
The above right-of-use asset (ROU) and lease liability relate to the office lease entered into by the Group.
The lease has been accounted for in accordance with AASB 16 adopted by the Group on 1 July 2019 under
the modified retrospective approach.
The ROU asset is measured at the amount equal to the lease liability at initial recognition and then amortised
over the life of the lease. During the prior year, the Group entered into a lease agreement for a period of
18 months from 1 June 2022. The lease liability and ROU asset at initial recognition for this new lease was
$77,266.
The right-of-use asset is being depreciated over the lease term on a straight-line basis. Depreciation expense
of $51,516 (30 June 2022: $47,116) 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 4.16%. 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 $1,982 (30 June 2022: $1,160) was included in corporate administration
expense in the consolidated statement of profit or loss and other comprehensive income.
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2023
59
12. Property, plant and equipment
30 June 2023
30 June 2022
$
$
Non-current assets
Computer equipment - at cost
40,198
37,899
Less: Accumulated depreciation
(33,785)
(29,292)
6,413
8,607
30 June 2023
30 June 2022
$
$
Cost
Balance at 1 July
37,899
27,285
Additions
2,299
10,614
Balance at 30 June
40,198
37,899
40,198
37,899
30 June 2023
30 June 2022
$
$
Accumulated depreciation
Balance at 1 July
29,292
25,863
Depreciation expense
4,493
3,429
Balance as at 30 June
33,785
29,292
Net book value
6,413
8,607
13. Trade and other payables
30 June 2023
30 June 2022
$
$
Trade payables
5,137,115
1,110,832
Accruals and other payables
528,585
751,856
5,665,700
1,862,688
Trade creditor payment terms are 30 days from end of month.
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2023
60
14. Borrowings
30 June 2023
30 June 2022
$
$
Research & development advance principle amount (a)
2,842,500
-
Research & development advance accrued interest (a)
147,591
-
Convertible notes payable - derivative financial liability (b)
2,889,749
-
Convertible notes interest payable (b)
56,020
-
5,935,860
-
(a) 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 was secured by the Research and
Development Tax Incentive receivable for the financial year ended 30 June 2023 (refer to note 10). Interest
is payable at the rate of 14.00% per annum.
(b) During the financial year the Group issued 3,850,0000 convertible notes ("Notes”) to Mercer Street
Global Opportunity Fund, LLC ("Mercer"), with a face value of $1.00 each, for total proceeds of $3,500,000.
The Notes were issued in two Tranches, with the first Tranche issued under the placement capacity available
to the Company under Listing Rule 7.1 (1,760,000 Notes with a subscription price of $1.6 million), with the
second Tranche issued after receiving shareholder approval (2,090,000 Notes with a subscription price of
$1.9 million).
The Notes have nil interest rate except in the case of an event of default. The Notes are convertible into
ordinary shares of the parent entity, at any time at the option of the note holder, or repayable 18 months
from issue. The Company has the right to repurchase the Notes, at any time during the Term of each Note,
at 105% of the outstanding face value. If the Company elects to repurchase the Notes, the Investor will have
the right to submit a notice of conversion to convert some or all of the outstanding Notes prior to full
repayment.
The Notes issued in Tranche 1 under the placement capacity available to the Company under Listing Rule
7.1 are convertible at $0.11 for the first three (3) months after issue (Conversion Price A). Except as required
under Conversion Price A, the Notes are convertible at the lesser of $0.11 and 90% of the average two (2)
daily VWAPs of the shares of the Company, from the fifteen (15) Trading Days on which the shares of the
Company traded in the ordinary course of business on the ASX and ending on the date immediately prior to
notice of Conversion, such two days being chosen by the Noteholder at its complete discretion (Conversion
Price B), subject to a minimum conversion (floor) price of $0.05.
As part of the convertible note agreement, the Company also issued 1,875,000 shares (commencement
shares) and 11,363,636 options at an exercise price of 15.4 cents per option. The commencement shares
were issued in May 2023 and the options were issued in June 2023 after obtaining shareholder approval.
The Company has identified the embedded derivatives related to the above describe note as it included
variable conversion features. The accounting treatment requires that the Company record the fair value of
the derivative financial liability as of the inception date of the Note and to fair value as of each subsequent
reporting date. The value attributed to the shares and options issued is the residual value.
The Company determined that the most probable settlement is by issuing shares at 90% of the fair value of
a VWAP and the total amount to be settled will be $4,283,333. The fair value of the derivative liability at
inception using a discount rate of 30% was determined to be $2,889,479.
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2023
14. Borrowings (continued)
61
The principal amount and unamortised debt discount of the convertible are as follows:
30 June
2023
30 June
2022
$
$
At inception date
Settlement amount
4,283,333
-
Unamortised debt discount
(1,393,584)
-
Fair value of the derivative liability at inception
2,889,749
-
The amortisation of debt discount for the year is as follows:
30 June
2023
30 June
2022
$
$
Interest expense
56,020
-
The Company allocated the proceeds based on the relative fair value of the derivative liability and the
residual amount is allocated against the shares and options issued as follows:
30 June
2023
30 June
2022
$
$
Total proceeds received
3,500,000
-
Less fair value of derivative liability
(2,889,749)
-
Residual value to be allocated to equity instruments
610,251
-
Commencement shares issued (1,875,000 @.070 per share) (Note 17)
Options issued (11,363,636 options)
131,250
-
Options issued (11,363,636 options) (Note 22.3)
479,001
-
Total value of equity instruments issued
610,251
-
15. Provisions
30 June 2023
30 June 2022
$
$
Provision for employee entitlements - current
132,786
108,838
Non-current liabilities
Long service leave
38,099
29,761
170,885
138,599
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2023
62
16. Subsidiary
30 June 2023
30 June 2022
%
%
Dimerix Bioscience Pty Ltd
100%
100%
17. Issued capital
30 June 2023 30 June 2023 30 June 2022 30 June 2022
Shares
$
Shares
$
Ordinary shares - fully paid
388,059,039
55,489,363
320,873,666
50,895,134
30 June 2023 30 June 2023 30 June 2022 30 June 2022
No.
$
No.
$
Balance at beginning of the year
320,873,666
50,895,134
197,999,297
28,389,114
Issue of ordinary shares
65,310,373
5,224,830
102,499,369
20,499,874
Exercise of options
-
-
1,000,000
180,000
Capital raising costs
-
(761,851)
-
(2,048,854)
Shares issued for settlement of loan (a)
-
-
17,500,000
3,500,000
Shares issued in lieu of services (b)
-
-
1,875,000
375,000
Shares issued as a part of convertible note (c)
1,875,000
131,250
-
-
Balance at end of year
388,059,039
55,489,363 320,873,666
50,895,134
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.
(a) In 2021, the Group entered into an unsecured loan agreement with major shareholder, Mr Peter Meurs.
Interest accrued at the compound rate of 1% per month. $3,500,000 of shares issued to the major
shareholder as part of the two-tranche placement were used to repay the Group's loan with that
shareholder. The remaining loan was re-paid in cash.
(b) During the prior period 1,875,000 ordinary shares were issued to S3 Consortium Pty Ltd (‘S3’) for
providing public and investor relations services. Under the services agreement, the Company agreed to pay
S3 $375,000 (excluding GST) for the provision of services over a term of 2 years (‘Fees’). The Company
agreed to pay the Fees via the issue of 1,875,000 Shares at a deemed issue price of $0.20.
The total share-based payment recognised as a corporate administration expense for the year ended 30
June 2023 was $190,789 (30 June 2022: $168,311) and $15,899 has been recognised as part of prepayments
(see Note 10).
(c) During the year, the Group issued 1,875,000 ordinary shares to Mercer Street Global Opportunity Fund,
LLC, as required under the Convertible Securities Agreement. The ordinary shares have been valued at
opening market price on the date of issuance. Refer to Note 14(b) for further details.
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2023
63
18. Reserves
30 June 2023
30 June 2022
$
$
Share-based payments reserve
2,574,721
1,825,652
Share- based payments reserve
30 June 2023
30 June 2022
$
$
Balance at beginning of year
1,825,652
886,952
Arising on share-based payments1
270,068
938,700
Issued as part of convertible notes
479,001
-
Balance at end of year
2,574,721
1,825,652
1The total share-based payment recognised as a cost of raising capital and deducted from equity for the
year ended 30 June 2023 was $204,014 (30 June 2022: $808,848).
Further information about share-based payments is set out in Note 22.
19. Accumulated losses
30 June 2023
30 June 2022
$
$
Accumulated losses at the beginning of the financial year
(38,298,146)
(27,807,567)
Loss after income tax expense for the year
(13,802,819)
(10,490,579)
Accumulated losses at the end of the financial year
(52,100,965)
(38,298,146)
20. Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
21. Financial instruments
21.1 Capital management
The Group manages its capital to ensure entities in the Group will be able to continue as going concern
while maximising the return to stakeholders through the optimisation of the debt and equity balance.
The Group’s overall strategy remains unchanged from 30 June 2022.
The Group is not subject to any externally imposed capital requirements.
Given the nature of the business, the Group monitors capital on the basis of current business operations
and cash flow requirements.
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2023
21. Financial instruments (continued)
64
21.2 Categories of financial instruments
30 June 2023
30 June 2022
$
$
Financial assets
Cash and cash equivalents
7,991,792
9,629,756
Trade and other receivables
9,553,543
6,385,126
17,545,335
16,014,882
Financial liabilities
Trade and other payables
5,665,700
1,862,688
Borrowing
5,935,860
-
Lease liability
21,949
73,099
11,623,509
1,935,787
21.3 Financial risk management objectives
In common with all other businesses, the Group is exposed to risks that arise from its use of financial
instruments. This note describes the Group’s objectives, policies and processes for managing those risks
and the methods used to measure them. Further quantitative information in respect of those risks is
presented throughout these financial statements.
There have been no substantive changes in the Group’s exposure to financial instrument risks, its objectives,
policies and processes for managing those risks or the methods used to measure them from previous
periods unless otherwise stated in this note.
The Board has overall responsibility for the determination of the Group’s risk management objectives and
policies and, whilst retaining ultimate responsibility for them, it has delegated the authority for designing
and operating processes that ensure the effective implementation of the objectives and policies to the
Group’s finance function.
The Group’s risk management policies and objectives are therefore designed to minimise the potential
impacts of these risks on the Group where such impacts may be material. The board receives monthly
financial reports through which it reviews the effectiveness of the processes put in place and the
appropriateness of the objectives and policies it sets. The overall objective of the board is to set policies
that seek to reduce risk as far as possible without unduly affecting the Group’s competitiveness and
flexibility.
21.4 Market risk
Market risk for the Group arises from the use of interest bearing financial instruments. It is the risk that the
fair value or future cash flows of a financial instrument will fluctuate because of changes in interest rate
(see 21.6 below).
21.5 Foreign currency risk
The Group undertakes transactions denominated in foreign currencies; consequently, exposures to
exchange rate fluctuations arise. At 30 June 2023, the Company has cash denominated in US dollars
US$55,658 (30 June 2022: US$594,207). The A$ equivalent at 30 June 2023 is $83,783 (30 June 2022:
$861,827). A 5% movement in foreign exchange rates would increase the Group’s loss before tax by
approximately $3,990 (30 June 2022: $43,091).
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2023
21. Financial instruments (continued)
65
21.6 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 2023 would increase/decrease by $14,544 (30 June 2022: $62,878).
21.7 Credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in
financial loss to the Group. The Group has adopted a policy of dealing with creditworthy counterparties and
obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from
defaults. The Group only transacts with entities that are rated the equivalent of investment grade and
above. This information is supplied by independent rating agencies where available and, if not available, the
Group uses other publicly available financial information and its own trading records to rate its major
customers. The Group’s exposure and the credit ratings of its counterparties are continuously monitored
and the aggregate value of transactions concluded is spread amongst approved counterparties.
The credit risk on liquid funds is limited because the counterparties are banks with high credit-ratings
assigned by international credit-rating agencies.
21.8 Liquidity risk
Ultimate responsibility for liquidity risk management rests with the board of directors, which has
established an appropriate liquidity risk management framework for the management of the Group’s short,
medium and long-term funding and liquidity management requirements.
The Group manages liquidity by maintaining adequate banking facilities, by continuously monitoring
forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.
2023
Carrying
amount
Less than 1
month
1-3 months
3-12
months
1 year to 5
years
Total
contractual
cash flows
$
$
$
$
$
$
Trade and other payables
5,665,700
5,665,700
-
-
-
5,665,700
Borrowings
5,935,860
-
-
5,935,860
-
5,935,860
Lease liability
21,949
4,359
13,170
4,420
-
21,949
11,623,509
5,670,059
13,170
5,940,280
- 11,623,509
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2023
21. Financial instruments (continued)
66
2022
Carrying
amount
Less than 1
month
1-3 months
3-12
months
1 year to 5
years
Total
contractual
cash flows
$
$
$
$
$
$
Trade and other payables
1,862,688
1,862,688
-
-
-
1,862,688
Lease Liabilities
73,099
4,182
8,407
38,562
21,948
73,099
1,935,787
1,866,870
8,407
38,562
21,948
1,935,787
22. Share-based payment expenses
2023
2022
$
$
Arising on issuance of options
66,054
129,842
22.1 Employee share option plan
Options may be issued to employees in accordance with the Company’s existing ESOP. 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 right to dividends nor voting rights. Options may be exercised at any time from the date of vesting
to the date of their expiry.
During the year, 750,000 options were granted to a key management personnel in accordance with the
Company’s ESOP with an exercise price of $0.40 per share. The options expire 21 July 2026 and are subject
to vesting conditions. The fair value of the options at grant date are determined using a Black Scholes pricing
method that takes into account the exercise price, the term of the option, the share price at grant date and
expected volatility of the underlying share, the expected dividend yield and the risk-free interest rate for
the term of the option.
The following table lists the inputs to the model used for valuation of the unlisted options:
Volatility
77%
Risk-free interest rate (%)
3.23%
Expected life of options (years)
4.00
Exercise price ($)
0.400
Underlying security price at grant date
0.145
Expiry date
21 July 2026
Valuation per option ($)
0.053
The deemed fair value of options granted to the key management personnel at grant date is $39,548. The
amount vested as for the financial year ended 30 June 2023 for these options amounted to $22,662.
The total share-based payment recognised including the expense from the above options issued to
employees as corporate administration expense was $66,054.
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2023
22. Share-based payment expenses (continued)
67
22.2 Options issued to Advisors
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.
Each option issued converts into one ordinary share of Dimerix Limited on exercise. The options carry
neither right to dividends nor voting rights. Options may be exercised at any time from the date of vesting
to the date of their expiry.
During the year 4,500,000 options were issued to Bell Potter Securities Limited for their services in
connection with the capital raise announced on 04 May 2023. Under the capital raise mandate, 4,500,000
listed options were issued on 28 June 2023 at an exercise price of 15.4 cents per share, expiring on 30 June
2025. The vesting date of the options is the issue date. The fair value of the listed options is equal to the
market value of the options on the grant date.
The deemed fair value of options granted to advisors at grant date is $81,000. These options vested
immediately and were recognised as a cost of raising capital.
During the prior year 8,500,000 options were issued to Canaccord Genuity for their services in connection
with the placement announced on 16 August 2021. Under the placement mandate, 8,500,000 unlisted
options were issued on 05 October 2021 at an exercise price of 40 cents per share, expiring on 30 July 2024.
The vesting date of the options is the issue date. The fair value of the options at grant date are determined
using a Black Scholes pricing method that takes into account the exercise price, the term of the option, the
share price at grant date and expected volatility of the underlying share, the expected dividend yield and
the risk-free interest rate for the term of the option.
The following table lists the inputs to the model used for valuation of the unlisted options:
Volatility
72%
Risk-free interest rate (%)
0.29%
Expected life of options (years)
2.82
Exercise price ($)
0.400
Underlying security price at grant date
0.270
Expiry date
30 July 2024
Value per option
0.095
The deemed fair value of options granted to advisors at grant date is $808,848. These options vested
immediately and were recognised as a cost of raising capital.
22.3 Options issued to convertible note holder
During the year 11,363,636 listed options were issued to Mercer Street Global Opportunity Fund, LLC in
connection with the issuance of Convertible Notes. Under the Convertible Securities Agreement (CSA), the
number of options issued is equal to 50% of the total funds raised under Tranche 1 ($1,750,000), divided by
$0.154 (15.4 cents), being equal to 150% of the 20-day VWAP immediately prior to the execution of the CSA
(which was $0.1026, 10.26 cents) (3,500,000 / 2 = 1,750,000, 1,750,000 / 0.154 = 11,363,636 options).
11,363,636 listed options were issued on 28 June 2023 at an exercise price of 15.4 cents per share, expiring
on 30 June 2025. The vesting date of the options is the issue date. The fair value of the options at grant date
has been determined as part of the residual value after allocating the fair value of the derivative liability
against total proceeds. Refer to note 14(b).
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2023
22. Share-based payment expenses (continued)
68
The deemed fair value of options granted to convertible note holder at grant date is $479,001.
22.4 Options issued to underwriters
During the year 7,159,784 listed options were issued to Sub-Underwriters as a part of the capital raised
announced 04 May 2023. 5,862,368 listed options were issued on 15 June 2023 to unrelated parties and
1,297,416 listed options issued on 28 June 2023 to related parties (following shareholder approval at the
General Meeting on 20 June 2023). The number of listed options issued to Sub-Underwriters was equal to
two and a half (2.5) listed options for every $1 sub-underwritten. The listed options have an exercise price
of 15.4 cents per share and expire on 30 June 2025. The vesting date of the options is the issue date. The
fair value of the listed options is equal to the market value of the options on the grant date.
The deemed fair value of options granted to underwriters at grant date is $123,014. These options vested
immediately and were recognised as costs of raising capital.
22.5 Options issued to Directors
Options may be issued to Directors or an associate where shareholder approval has been given at a general
meeting.
Each option issued converts into one ordinary share of Dimerix Limited on exercise. The options carry
neither right to dividends nor voting rights. Options may be exercised at any time from the date of vesting
to the date of their expiry.
During the prior year 599,140 options were granted to directors with an exercise price of $0.40 per share,
expiring 30 July 2024. The vesting date of the options is the issue date. The fair value of the options at grant
date are determined using a Black Scholes pricing method that takes into account the exercise price, the
term of the option, the share price at grant date and expected volatility of the underlying share, the
expected dividend yield and the risk-free interest rate for the term of the option.
The following table lists the inputs to the model used for valuation of the unlisted options:
Volatility (%)
84%
Risk-free interest rate (%)
0.22%
Expected life of options (years)
2.84
Exercise price ($)
0.400
Underlying security price at grant date
0.330
Expiry date
30 July 2024
Value per performance right
0.158
The deemed fair value of options granted to directors at grant date is $94,382. This amount was recognised
as a corporate administration expense for the year ended 30 June 2022 as these options vested
immediately.
22.6 Options on Issue
The following share-based payment arrangements were in existence at the end of the current reporting
period:
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2023
22. Share-based payment expenses (continued)
69
No. of options. Grant date
Expiry date
Grant date
fair value
Vesting date/Expected
Vesting Date
Exercise Price
2,117,325
30/10/2018
30/10/2023
0.051
1/3vest on 30 October
2019
1/12 vest on 31 January
2020
1/12 vest on 30 April 2020
1/12 vest on 31 July 2020
1/12vest on 30 October
2020
1/12 vest on 31 January
2021
1/12 vest on 30 April 2021
1/12 vest on 31 July 2021
1/12 vest on 30 October
2021
0.18
2,117,325
30/10/2018
30/10/2023
0.042
1/3vest on 30 October
2019
1/12 vest on 31 January
2020
1/12 vest on 30 April 2020
1/12 vest on 31 July 2020
1/12 vest on 30 October
2020
1/12 vest on 31 January
2021
1/12 vest on 30 April 2021
1/12 vest on 31 July 2021
1/12 vest on 30 October
2021
0.27
2,117,325
30/10/2018
30/10/2023
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
375,000
15/03/2019
31/01/2024
0.026
1/2 vest on 30 September
2019
1/2 vest on 17 February
2021
0.18
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2023
22. Share-based payment expenses (continued)
70
375,000
15/03/2019
31/01/2024
0.180
1/2 vest on 30 September
2019
1/2 vest on 17 February
2021
0.27
8,500,000
27/09/2021
30/07/2024
0.095 27 September 2021
0.40
599,140
27/09/2021
30/07/2024
0.158 05 October 2021
0.40
1,000,000
10/11/2021
03/12/2025
0.100
1/2 vest on 15 April 2023
1/2 vest on 15 January
2025
0.40
750,000
21/07/2022
21/07/2026
0.053
1/3 vest on 21 July 2023
1/3 vest on 21 July 2024
1/3 vest on 21 July 2025
0.40
4,500,000
28/06/2023
30/06/2025
0.011 28 June 2023
0.15
11,363,636
28/06/2023
30/06/2025
0.042 28 June 2023
0.15
5,862,368
15/06/2023
30/06/2025
0.017 15 June 2023
0.15
1,297,416
28/06/2023
30/06/2025
0.018 28 June 2023
0.15
There has been no alteration of the terms and conditions of the above share-based payment arrangements
since the grant date.
Fair value of share options granted in the year
The deemed fair value of options granted during the year is $705,676 (30 June 2022: $1,003,098).
●
On 21 July 2022, the Company issued 750,000 employee options as a part of the Employee Omnibus
Plan
●
On 28 June 2023, the Company issued 11,363,636 options to the convertible note holder.
●
On 15 June 2023, the Company issued 5,862,838 options to sub-underwriters who were unrelated third
parties
●
On 28 June 2023, the Company issued 4,500,000 advisor options as a part of a capital raise
●
On 28 June 2023, the Company issued 1,297,416 options to sub-underwriters who were related third
parties.
Movements in all share options during the year
The following reconciles all the share options outstanding at the beginning and end of the year:
2023
2023
2022
2022
Number of
options
Weighted
average exercise
price
Number of
options
Weighted
average exercise
price
No.
$
No.
$
Balance at beginning of the
year
77,951,112
0.386
8,851,975
0.248
Granted during the year
89,083,346
0.146
70,099,137
0.400
Expired during the year
(750,000)
0.180
(1,000,000)
0.180
Balance at end of year
166,284,458
0.258
77,951,112
0.386
Exercisable at end of year
165,034,458
0.258
76,951,112
0.381
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2023
22. Share-based payment expenses (continued)
71
22.7 Share options exercised during the year
There were no share options exercised during the year (30 June 2022: 1,000,000).
22.8 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 $0.258 ( 30
June 2022: $0.386) and a weighted average remaining contractual life of 466 days (30 June 2022: 736 days).
23. Key management personnel disclosures
The aggregate compensation made to directors and other members of key management personnel of the
Group is set out below:
2023
2022
$
$
Short-term employee benefits
884,817
797,845
Post-employment benefits
56,048
46,151
Share-based payments
22,662
97,630
963,527
941,626
24. Related party transactions
24.1 Key management personnel
Any person(s) having authority and responsibility for planning, directing and controlling the activities of the
entity, directly or indirectly, including any director (whether executive or otherwise) of that entity, are
considered key management personnel.
For details of disclosures relating to key management personnel, refer to the remuneration report
contained in the directors’ report and Note 23.
Unlisted options were issued to a key management employee and listed options were issued to directors
in lieu of being sub underwriters as described in Notes 22.1, 22.4 and 22.5.
24.2 Transactions with other related parties
All transactions between the Group and related parties are on an arms-length basis.
25. Reconciliation of loss after income tax to net cash (used in) operating activities
For the purposes of the consolidated statement of cash flows, cash and cash equivalents include cash on
hand and in banks, net of outstanding bank overdrafts. Cash and cash equivalents at the end of the reporting
period as shown in the consolidated statement of cash flows can be reconciled to the related items in the
consolidated statement of financial position as follows:
30 June 2023
30 June 2022
$
$
Cash and cash equivalents
7,991,792
9,629,756
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2023
25. Reconciliation of loss after income tax to net cash (used in) operating activities (continued)
72
(a) Reconciliation of loss after taxable income to net cash used in operating activities
Cashflow from operating activities
2023
2022
$
$
Loss after income tax expense for the year
(13,802,819)
(10,490,579)
Adjustments for:
Depreciation and amortisation
56,009
50,545
Share-based payments (Note 22)
66,054
129,842
Foreign exchange differences
23,809
135,176
Accrued interest on borrowings (Note 14)
205,501
151,160
Costs in exchange for shares (Note 17(b))
190,789
95,395
Movement in working capital:
Decrease/(increase) in prepayments
25,467
(322,243)
Increase in trade and other receivables
(3,168,417)
(2,337,082)
Increase/(decrease) in trade and other payables
3,642,692
(921,496)
Increase in other provisions
32,256
73,345
Net cash (used in) operating activities
(12,728,659)
(13,435,937)
(b) Changes in liabilities arising from financing activities
1 July 2022
Additions
Cash flows
Other
30 June 2023
$
$
$
$
$
Lease liabilities
73,099
-
(51,686)
536
21,949
Borrowings
-
6,342,500
-
(406,640)2
5,935,860
73,099
6,342,500
(51,686)
(406,104)
5,957,809
1 July 2021
Additions
Cash flows
Other
30 June 2022
$
$
$
$
$
Lease liabilities
43,093
77,266
(47,433)
173
73,099
Borrowings
5,050,000
150,000 (1,700,000) (3,500,000)1
-
5,093,093
227,266 (1,747,433) (3,499,827)
73,099
The "Other" column includes:
1 Shares issued in lieu of payment of a $3,500,000 loan.
2 Includes accrued interest of $203,611 and net of residual amount of equity instruments of $610,251 (Note
14)
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2023
73
26. Commitments and contingencies
The Group has entered into a number of agreements related to research and development activities. As at
30 June 2023, under these agreements, the Group is committed to making payments over future periods,
as follows:
30 June
2023
During the period 1 July 2022 – 30 June 2023
15,909,071
During the period 1 July 2023 – 30 June 2024
290,006
16,199,077
Where commitments are denominated in foreign currencies, the amounts have been converted to
Australian dollars based on exchange rates prevailing as at 30 June 2023.
27. Remuneration of auditors
During the financial year the following fees were paid or payable for services provided by Stantons
International Audit and Consulting Pty Ltd, the auditor of the company:
2023
2022
$
$
Audit services
Audit or review of the financial statements
53,700
49,140
Other non-audit services1
17,525
-
71,225
49,140
1Other non-audit services relate to the preparation of an Independent Expert Report.
28. Events after the reporting period
On 08 August 2023 the Company issued 1,256,250 ordinary shares, 628,125 listed options and 628,215
unlisted options in relation to the placement of shortfall securities under the Prospectus lodged with ASIC
and released to ASX on 04 May 2023.
On 28 August 2023 the Company issued 2,250,000 ordinary shares, 1,125,000 listed options and 1,125,000
unlisted options in relation to the placement of shortfall securities under the Prospectus lodged with ASIC
and released to ASX on 04 May 2023.
No other matter or circumstance has arisen since 30 June 2023 that has significantly affected, or may
significantly affect the Group's operations, the results of those operations, or the Group's state of affairs in
future financial years.
Dimerix Limited and controlled entity
Notes to the consolidated financial statements
30 June 2023
74
29. Parent entity information
The accounting policies of the parent entity, which have been applied in determining the 30 June 2023 and
30 June 2022 financial information shown below, are the same as those applied in the financial statements.
Refer to Note 2 for a summary of significant accounting policies relating to the Group.
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
Parent
2023
2022
$
$
Loss after income tax
(16,075,968)
(14,406,362)
Total comprehensive loss
(16,075,968)
(14,406,362)
Statement of financial position
Parent
30 June 2023
30 June 2022
$
$
Total current assets
4,123,891
8,812,908
Total assets
4,123,891
8,812,908
Total current liabilities
6,268,843
231,043
Total non-current liabilities
16,088
10,236
Total liabilities
6,284,931
241,279
Net (liabilities)/ assets
(2,161,040)
8,571,629
Equity
Issued capital
85,432,276
80,838,046
Share-based payments reserve
2,738,700
1,989,631
Accumulated losses
(90,332,016)
(74,256,048)
Total (deficit)/ equity
(2,161,040)
8,571,629
Dimerix Limited and controlled entity
Shareholder information
30 June 2023
75
ASX Additional Information as at 28th August 2023
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
253
102,678
0.03%
1,001 - 5,000
1,380
4,054,085
1.04%
5,001 - 10,000
900
7,100,968
1.81%
10,001 - 100,000
1,911
67,668,400
17.28%
100,001 - 9,999,999,999
547
312,639,158
79.84%
Totals
4,991
391,565,289
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.
Quoted Options, exercisable at $0.154 expiring 30 June 2025
Holding Ranges
Holders
Total Units
% Issued Share Capital
1 - 1,000
80
41,953
0.07%
1,001 - 5,000
128
321,446
0.56%
5,001 - 10,000
70
497,686
0.87%
10,001 - 100,000
122
4,575,825
7.97%
100,001 - 9,999,999,999
49
51,994,598
90.53%
Totals
449
57,431,508
100.00%
Unquoted Options
Holding Ranges
Holders
Total Units
% Issued Share Capital
1 - 1,000
77
41,572
0.04%
1,001 - 5,000
513
1,617,715
1.44%
5,001 - 10,000
277
1,868,762
1.65%
10,001 - 100,000
754
23,184,372
20.63%
100,001 - 9,999,999,999
168
85,646,779
76.23%
Totals
1,789
112,359,200
100.00%
Unquoted Securities
•
2,117,325 unlisted options $0.18 expiring 30 October 2023 are held by Nina Webster;
•
2,117,325 unlisted options $0.27 expiring 30 October 2023 are held by Nina Webster;
•
2,117,325 unlisted options $0.36 expiring 30 October 2023 are held by Nina Webster;
•
375,000 unlisted options $0.18 expiring 31 January 2024 are held by an individual ESOP holder;
•
375,000 unlisted options $0.27 expiring 31 January 2024 are held by an individual ESOP holder;
•
8,500,000 unlisted options $0.40 expiring 30 July 2024 are held by Canaccord Genuity;
•
599,140 unlisted options $0.40 expiring 30 July 2024 are held by two Non-Executive Directors and a
former Non-Executive Director;
Dimerix Limited and controlled entity
Shareholder information
30 June 2023
76
•
59,999,997 unlisted options $0.40 expiring 30 July 2024 are held by SPP and Placement participants
(1,473 total holders)
•
1,000,000 unlisted options $0.40 expiring 03 December 2025 are held by ESOP holders;
•
750,000 unlisted options $0.40 expiring 21 July 2026 are held by Ashish Soman
•
34,408,088 unlisted options $0.126 expiring 31 March 2024 are held by Entitlement Offer
participants (441 total holders)
•
3,850,000 unlisted convertible notes are held by Mercer Street Global Opportunity Fund LLC
Unmarketable parcels
There are 1,979 shareholdings held with less than a marketable parcel.
Substantial shareholders
Number of shares
% holding
Mr Peter Meurs
64,929,440
16.58%
Restricted securities
Nil
On-Market buy-back
There is no current on-market buy-back.
Twenty (20) largest shareholders of quoted ordinary shares
Position
Holder Name
Holding
% IC
1
MR PETER FLETCHER MEURS
35,572,412
9.08%
2
SKIPTAN PTY LTD
29,357,028
7.50%
3
FREEDOM TRADER PTY LTD
9,375,152
2.39%
4
BAVARIA BAY PTY LTD
7,316,992
1.87%
5
YODAMBAO PTY LTD
6,362,603
1.62%
6
MRS MELINDA JANE COATES & MR ANDREW JOSEPH COATES
5,000,000
1.28%
7
MR PHILIP ROBERT SCOTT
4,425,000
1.13%
7
MRS JULIE MAREE SCOTT
4,425,000
1.13%
8
MR ANDREW JOSEPH COATES & MRS MELINDA JANE COATES
4,311,500
1.10%
9
MR RICHARD STANLEY DE RAVIN
4,200,000
1.07%
10
TAMER YIGIT PROPERTY GROUP PTY LTD
3,870,000
0.99%
11
MR TAYLOR NICHOLAS GREEN
3,500,000
0.89%
12
MR ANTHONY MARK VAN DER STEEG
3,090,519
0.79%
13
LIMNOS 34 PTY LTD
3,000,728
0.77%
14
MRS GWEN MURRAY PFLEGER
2,807,984
0.72%
15
RUBI HOLDINGS PTY LTD
2,500,000
0.64%
16
COATES FAMILY OFFICE PTY LTD
2,300,000
0.59%
17
TOROHA PTY LTD
2,137,753
0.55%
18
MOORE FAMILY NOMINEES PTY LTD
2,000,000
0.51%
18
SOLEQUEST PTY LTD
2,000,000
0.51%
19
CITICORP NOMINEES PTY LIMITED
1,953,707
0.50%
20
JAMPASO PTY LTD
1,778,742
0.45%
Total
141,285,120
36.08%
Total issued capital - selected security class(es)
391,565,289
100.00%
Dimerix Limited and controlled entity
Shareholder information
30 June 2023
77
Twenty (20) largest shareholders of quoted options
Position
Holder Name
Holding
% IC
1
MERCER STREET GLOBAL OPPORTUNITY FUND LLC
11,363,636
19.79%
2
SKIPTAN PTY LTD
7,133,253
12.42%
3
BELL POTTER NOMINEES LTD
7,047,177
12.27%
4
FREEDOM TRADER PTY LTD
4,466,381
7.78%
5
MR PETER FLETCHER MEURS
4,446,552
7.74%
6
BILGOLA NOMINEES PTY LIMITED
2,587,568
4.51%
7
MR RICHARD STANLEY DE RAVIN
1,441,668
2.51%
8
RJS INVESTMENT GROUP PTY LTD
1,000,000
1.74%
8
MOORE FAMILY NOMINEES PTY LTD
1,000,000
1.74%
9
MRS JULIE MAREE SCOTT
782,500
1.36%
9
MR PHILIP ROBERT SCOTT
782,500
1.36%
10
NORTH OF THE RIVER INVESTMENTS PTY LTD
738,907
1.29%
11
MR ALEXANDER MICHAEL LEWIT
531,209
0.92%
12
DH NEWTON NOMINEES PTY LTD
525,001
0.91%
13
DJEE SUPER PTY LTD
500,000
0.87%
13
RIYA INVESTMENTS PTY LTD
500,000
0.87%
14
MRS GWEN MURRAY PFLEGER
491,397
0.86%
15
LILLUCY PTY LTD
483,952
0.84%
16
TAMER YIGIT PROPERTY GROUP PTY LTD
425,000
0.74%
17
MR TAYLOR NICHOLAS GREEN
400,000
0.70%
18
MR ANTHONY MARK VAN DER STEEG
358,115
0.62%
19
RIYA INVESTMENTS PTY LTD
324,967
0.57%
20
MR ALEXANDER HENRI JOSEF REITHMEIER
250,000
0.44%
Total
47,579,783
82.85%
Total issued capital - selected security class(es)
57,431,508
100.00%
END