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AssuraCARE
DELIVERY
DRUG
DEVELOPMENT
Patient imPact
Treated over
10,000 Patients
exPanded
Mental Health
Footprint
ready
For MDMA-Assisted
Therapy
Grew
Novel MDMA
Analogue Library
advanced
Ultra-Pure CBD
Capsules
Secured
First Commercial
Partner
Annual Report
2023
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2
0
2
-
2
2
0
2
WE ARE
A clinical-stage biotech
accelerating treatment development for
unmet neuroscience and mental health needs.
We are...
A clinical-stage biotech accelerating treatment
development for unmet medical needs.
CONTACT INFORMATION
EMYRIA INVESTOR HUB
Michael Winlo mwinlo@emyria.com
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Contents
Letter From the Chairman
Emyria - 2023 Key Milestones
Directors Report
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Directors’ Declaration
Auditors’ Declaration
Independent Auditor’s Report
ASX Additional Information
Corporate Governance
Corporate Directory
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4
Creating tomorrow’s therapies
from today’s patient stories
EMYRIA ANNUAL REPORT 2023 LETTER FROM
THE CHAIRMAN
I am proud to present our Annual Report for
2023 and recap our year of accomplishments.
Guided by our foundational 3D model of Care
Delivery, Data Collection, and Drug Development,
we’ve made substantial progress in our drug
development programs and responded to unique
regulatory shifts in Australia by significantly
expanding our footprint in mental health.
CARE DELIVERY | Scalable Models & Partnerships
The Therapeutic Goods Administration’s rescheduling
of MDMA and psilocybin in February 2023 encouraged
us to expand our care delivery capabilities. Our
acquisition of leading psychological trauma specialists
- the Pax Centre - positions us to build a thriving,
multidisciplinary clinical service uniquely prepared
to provide and evaluate psychedelic-assisted
therapies. Dr. Ben Sessa, a global leader in the field,
trained our initial team of 20 clinicians, and we are
now positioned to lead in both the delivery and
development of these promising new treatments.
DATA COLLECTION | Real-World Data
& Strategic Research Partnerships
Our wholly-owned clinical service subsidiaries
have been instrumental in gathering Real-World
Data, thereby informing our drug development
strategies and care programs. We also established
collaborations and partnerships with several leading
institutions, such as the Institute of Respiratory
Health and PsychoGenics, to support our MDMA
analogue program. Emyria’s high-potency Ultra-Pure
Cannabinoid assets were also accepted into the NIH
HEAL Initiative® and the NINDS Preclinical Screening
Platform for Pain (PSPP) program, underscoring our
approach’s credibility and opening the door for future
global collaborations.
DRUG DEVELOPMENT | Clinical Trials & Licensing
This year, we gained Human Research Ethics
Committee approval for Phase 3 clinical trials of our
Ultra-Pure CBD capsule, EMD-RX5, targeting stress
and anxiety. Despite recruitment delays in July, our
resolve remains unshaken. Moreover, our exclusive
licensing agreement with Aspen Pharmacare Australia
in April 2023 could lead to significant revenue
streams. We expanded our MDMA-Analogue Library
to over 140 compounds on the innovation front,
fortifying our pipeline for developing neuropsychiatric
disorder treatments.
Financial & Operational Milestones
We also managed to increase our clinical service
revenues while reducing our operating costs, which,
combined with our successful capital raises, positioned
us well to deliver on our ambitious programs.
In closing, I must express how excited we are about the
year ahead. Psychedelic-assisted therapy stands as one
of the most promising new frontiers in healthcare.
What’s needed now is responsible leadership to guide
these therapies into mainstream acceptance and
clinical practice safely. Emyria is exceptionally well-
positioned to fulfil this role—providing integrated and
controlled access to these revolutionary treatments
while simultaneously collecting robust clinical data that
will inform future advancements.
Thank you for your continued trust and investment in
Emyria. We are poised for a breakthrough year, and
your support is crucial in making this a reality.
Dr Stewart Washer
Emyria Chairman
6
2022-2023
KEY
MILESTONES
Phase 3 Clinical Trials
In August 2022, Emyria received Human Research
Ethics Committee approval to commence a pivotal
Phase 3 clinical trial for EMD-RX5, an Ultra-Pure CBD
capsule seeking registration as an over-the-counter
treatment for stress and anxiety. By January 2023,
recruitment and dosing had commenced. In July 2023,
recruitment slowed while the Group navigates an issue
with a single batch of drug product with its Contract
Drug Manufacturing Organisation (CDMO).
Licensing and Commercialisation
In April 2023, Emyria signed an exclusive licensing
agreement with Aspen Pharmacare Australia,
potentially leading to significant revenue streams
through a royalty of up to 10% on annual net sales and
additional milestone payments.
Expanding MDMA-Analogue Library
Over a few months, Emyria expanded its proprietary
library of neurologically active compounds inspired by
MDMA to over 140. This sets the stage for a pipeline of
promising treatments for neuropsychiatric disorders.
Strategic Partnerships for Research
Partnering with the Institute of Respiratory Health
and a leading neuroscience Contract Research
Organisation (CRO) PsychoGenics demonstrates a
multi-disciplinary approach. PsychoGenics will use
its SmartCube™ technology to screen potential
compounds for neuropsychiatric indications, thereby
de-risking R&D investment.
International Recognition
Emyria was accepted into the NIH HEAL Initiative®
National Institute of Neurological Disorders and Stroke
(NINDS) Preclinical Screening Platform for Pain (PSPP)
program. Being recognised by a leading funder of
neurological research in the USA is both a validation of
Emyria’s scientific credibility and an open door to future
collaborative opportunities.
Legal and Regulatory Shifts
In February 2023, the Therapeutic Goods
Administration (TGA) rescheduled MDMA and
psilocybin, benefiting Emyria’s expansion of its MDMA-
assisted therapy programs.
Operational Expansions and Partnerships
By March 2023, the company entered a partnership
with trauma specialists at the PAX Centre to develop
a scalable MDMA-assisted therapy model. This
operational scaling is vital for translating research
findings into real-world applications.
EMYRIA’S MDMA ANALOGUE LIBRARY
Expands to over 140 with
EMYRIA ANNUAL REPORT 2023 7
PSYCHEDELIC-ASSISTED THERAPY
Training with Dr Ben Sessa
Expansion into PTSD and Therapist Training
In June 2023, Emyria received approval for a novel
MDMA-assisted therapy trial for PTSD and acquired
The Pax Centre (completion expected in Q1 FY24).
Dr. Ben Sessa, a leading researcher in the field,
trained an initial team of 20 Emyria-affiliated
therapists, adding credibility and expertise to the
operational team.
Capital for Advanced Therapies
In November 2022, Emyria secured a $3 million
placement cornerstoned by Tenmile and Sixty
Two Capital. By January 2023, Emyria received
a cash refund of over $2 million via the Australian
Government’s R&D Tax Incentive.
In May 2023, Emyria secured $2.5 million in
placement to support the delivery of MDMA and
psilocybin-assisted therapies and its pioneering drug
discovery program.
Images: Pg. 6 UWA Researcher Dr Glenn Pullella working on Emyria’s Program “New Drug Discovery” in partnership with UWA
Pg. 7 Psychedelic-Assisted Therapy, Therapist Training with Dr Ben Sessa at The Pax Centre
EMYRIA ANNUAL REPORT 2023
8
We’ve developed a
clear strategy for value
creation, with a focus
on three key areas
Care Delivery
Data Collection
Drug Development
EMYRIA ANNUAL REPORT 2023
9
DIRECTORS’
REPORT
The directors present their report for Emyria Limited (“Emyria” or “the Company”) and its subsidiaries
(“the Group”) for the financial year ended 30 June 2023.
Directors
The names of the directors in office at any time during or since the end of the year ended are:
Dr Stewart Washer
Executive Chairman
Dr Michael Winlo
Managing Director
Professor Dr Alistair Vickery
Executive Medical Director
Dr Karen Smith
Executive Director
Mr Matthew Callahan
Non-Executive Director (resigned 21 August 2023)
Professor Sir John Tooke
Non-Executive Director
Dr Mohit Kaushal
Non-Executive Director (appointed 21 August 2023)
Review of operations
The principal continuing activity of the Group is
developing biopharmaceuticals guided by Real-World
Data collected with patients across its wholly-owned
clinical service subsidiaries.
Significant changes in state of affairs
During the reporting period, the Group’s
principal activity has been the development of
biopharmaceuticals, specifically novel MDMA
analogues and Ultra-Pure CBD capsules, informed
by Real-World Data gathered from patients across
its wholly-owned clinical service subsidiaries. The
Group has strategically concentrated on advancing
the development and commercialisation of these
proprietary medicines, while simultaneously
launching its MDMA-assisted therapy program to
broaden its impact in the mental healthcare sector.
Benefiting from its extensive experience in collecting
data while working with newly rescheduled
medicines, the Group responded strategically to
pivotal regulatory changes allowing MDMA and
psilocybin to be prescribed as legal medicines in
Australia from July 1, 2023. The Group is poised to
become a leader in the evolving field of psychedelic-
assisted therapies.
2022 -2023 Key Milestones
See pages 6-7 of the Annual report
Events after reporting date
On 21 August 2023, the Company announced a
strategic change in Emyria’s Board of Directors.
Matthew Callahan, Founder and Non-Executive
Director, resigned to focus on other endeavours
but has agreed to continue providing legal, IP, and
investment advisory support to Emyria.
The Group was pleased to appoint Dr. Mohit Kaushal
as a non-Executive Director. Dr. Kaushal has an
extensive background in clinical transformation,
digital health, and strategic investments. Dr. Kaushal’s
expertise aligns with Emyria’s vision for future growth
and innovation in mental health care.
On 4 September 2023, the Company announced
that it had secured bids for a placement of $2m
(before costs). The Placement comprises the issue of
approximately 26,666,667 fully paid ordinary shares
at $0.075 each (“Placement Shares”) representing
a 6.25% discount to the last traded price as at 30
August 2023. In addition, the Placement includes
1 free attaching unquoted option for every 2
shares applied for and issued under the Placement
(“Placement Options”).
COMPANY SNAPSHOT
10
Directors’ Report
The Placement Options will be exercisable at $0.12
each and expire 3 years from the date of issue.
On 5 September 2023, the Company announced that
19,217,144 options expired on 28 April 2023.
On 6 September 2023, the Company announced a
non-renounceable entitlement issue of 1 new share
for every 7.5 existing shares held at an issue price of
$0.075 per new share to raise approximately $3.1m
(before costs) together with 1 free attaching option for
every 2 new shares applied for and issued.
On 13 September 2023, the Company announced that
it completed its acquisition of Mind Body Consulting
Pty Ltd trading as the Pax Centre. The strategic
acquisition was valued at $1.7m and executed through
a combination of shares and cash. 10,236,220 shares
were issued with a value of $1.3m. The balance is to be
paid in cash.
On 13 September 2023, the Company also announced
the issue of 25,000,000 shares, of which 20,000,000
were issued under tranche one of the placement
announced on 4 September and 5,000,000 shares at
a deemed issue price of $0.075 each to StocksDigital
in part consideration for the provision of investor
relations services.
There are no other matters or circumstances that
have arisen since the end of the financial year which
have significantly affected or may significantly affect
the operations of the Group, the results of those
operations, or the state of affairs of the Group in
future financial periods.
Future development, prospects
and business strategy
The Group plans to continue its pioneering work in
the healthcare landscape by integrating its core
competencies in patient treatment, clinical data
capture, and drug development. We aim to become
industry leaders in delivering and developing promising,
proprietary neuropsychiatric treatments.
A key short-term focus will be the integration and value
optimisation of our clinical services, particularly following
the acquisition of the leading multidisciplinary trauma-
informed mental health service, the Pax Centre. This
strategic acquisition positions us to significantly advance
the provision of wraparound mental health care,
particularly psychedelic-assisted therapies, and increase
clinical billing revenues.
Concurrently, the Group is laying the groundwork for
robust data capture across it’s broadened clinical service
activities to inform and accelerate future drug and
therapy development. The Group will continue to advance
its novel MDMA analogues and Ultra-Pure CBD capsules.
Business risks
Access to Capital: Emyria’s business model necessitates
ongoing investment in clinical trials and other areas
of research and development. While we anticipate
generating revenue from our clinical services, these
earnings may not be sufficient to cover the full scope of
business expenses and required investments. As such,
Emyria will continue to depend on external financing
through equity or debt to sustain the business,
including our Phase 3 clinical trials. Any limitations
on our ability to secure the necessary funding could
adversely impact our operational sustainability and
delay our path to profitability.
Clinical trials: Clinical trials inherently come with
elements of risk, including the potential for negative,
inconclusive, or non-efficacious results. These factors
can significantly impact the commercial potential and
profitability of our Ultra-Pure CBD capsules (EMD-RX5,
EMD-RX7, and EMD-RX9) and proprietary MDMA
analogues. The enrolment of patients into trials is
susceptible to delays due to various challenges such
as the supply chain disruptions, economic downturns,
and difficulties in hiring qualified staff. Regulatory
approvals, importation, and customs requirements can
further delay the progression of clinical trials.
Data obtained from clinical trials can also be
interpreted differently by different stakeholders,
including regulatory authorities. This could potentially
delay, limit, or prevent the receipt of regulatory
approvals. Moreover, Phase 3 clinical trial data may not
necessarily be indicative of the results obtained upon
completion or in future stages. Interpreting masked
data is subject to further analysis once unmasked, and
negative outcomes at any stage could inhibit further
development, limit commercial potential, or impede
marketing approval.
Lastly, our Ultra-Pure CBD capsules and MDMA
analogues are subject to stringent safety and efficacy
assessments. Failure to demonstrate a strong safety
profile or sufficient therapeutic efficacy in future clinical
studies could hinder their ongoing clinical development
and market release. Delays in patient recruitment
or challenges in securing clinical locations may also
impact the timeline of our clinical programs.
EMYRIA ANNUAL REPORT 2023
11
Clinical Data: Emyria holds sensitive clinical data that
is susceptible to cybersecurity risks, including potential
attacks or breaches from both internal and external
parties. These breaches could occur whether access to
the data is authorised or unauthorised. Consequently,
there’s a risk that sensitive information may be publicly
exposed or permanently lost. Any such cybersecurity
attack or data breach could impact Emyria’s
compliance with relevant data protection or privacy
legislation. Non-compliance with such legislation
could lead to penalties, attract negative publicity, and
adversely affect the company’s brand and reputation.
Research and Development: The future success
of Emyria is closely tied to the outcomes of clinical
trials for our Ultra-Pure CBD capsules (EMD-RX5,
EMD-RX7, and EMD-RX9) as well as our proprietary
MDMA analogues, and their eventual approval as
safe and effective treatments. These products are
currently in various stages of clinical development,
and the possibility of commercialisation, which would
generate sales and revenue, remains uncertain and
potentially years away. Continued progress requires
further research and development, including ongoing
evaluation of safety and efficacy in clinical trials,
followed by regulatory approval prior to marketing
authorisation.
Drug development is an inherently high-risk endeavour.
Until Emyria can provide further clinical evidence
supporting the efficacy of its treatments in improving
patient outcomes, the success of these products
remains speculative. Risks associated with research and
development include, but are not limited to, uncertain
outcomes, delays in development, and general
scientific uncertainties surrounding the development
of novel pharmaceutical products. Materialisation of
any of these risks could significantly impede Emyria’s
progress and adversely affect its future financial
performance.
Patient Safety in Clinical Services: Emyria provides
comprehensive clinical care to patients with severe
mental health issues, including the provision of
experimental treatments such as psychedelic-
assisted therapy. The vulnerable nature of this patient
population elevates the importance of maintaining
stringent safety protocols. There is an inherent risk
associated with any medical intervention and thorough
patient evaluations and informed consent are crucial.
Despite these precautions, there can be no assurance
that adverse events will not occur. Such events could
have legal repercussions, attract negative publicity,
and harm Emyria’s brand and financial standing.
Ensuring the competence and suitability of clinicians is
crucial. All clinicians must be rigorously vetted, trained
in the specialised treatments offered, and supervised
to maintain the highest standards of care. Failure
to adequately vet and train clinicians could result in
suboptimal treatment outcomes and potentially, legal
ramifications.
Regulatory Approval: Emyria operates in a highly
regulated sector concerning the manufacture,
distribution, and supply of pharmaceutical products
as well as the use of experimental treatments like
psychedelic-assisted therapies. Achieving and
maintaining the necessary approvals, licences, and
registrations from relevant regulatory authorities across
various jurisdictions is not guaranteed. There may be
instances where agencies like the Therapeutic Goods
Administration (TGA) or Food and Drug Administration
(FDA) identify deficiencies requiring resolution or
request additional studies or approvals beyond what
is currently planned. This could result in delays and
increased costs for our clinical trials as well as our
care programs. Emyria also faces the risk of policy,
regulation, and legislative changes in all jurisdictions
where it operates. Failure to secure or sustain required
approvals or adapt to regulatory changes could
adversely impact Emyria’s ability to commercialise and
manufacture its treatments.
EMYRIA ANNUAL REPORT 2023 12
Directors’ Report
Commercial Risk: Emyria may explore various
corporate opportunities, such as acquisitions, licensing,
or partnerships to advance its reach in mental health
care delivery and drug development programs. There
is no guarantee that any such opportunities can be
finalised on commercially acceptable terms. Even
if terms for licensing and partnerships are agreed
upon, unforeseen factors related to the environment,
technology, or market conditions may impede the
performance of distributors and collaborators in
delivering contracted outcomes. Moreover, the future
success of Emyria hinges on market acceptance and
client retention. This involves convincing prospective
clients and partners of the efficacy of Emyria’s products
and services.
Information Technology: Emyria is dependent on
robust information technology, software, data centres,
and communication systems for its operations. The
systems are susceptible to various risks, including
disruptions, failures, service outages, or data corruption,
which could occur due to computer viruses, malware,
internal or external misuse, cyber-attacks, or other
disruptions like natural disasters and power outages.
A disruption to any of these platforms or systems
could have a significant adverse impact on Emyria’s
operations.
Competition: The healthcare, biotechnology and
pharmaceutical sectors are highly competitive and
subject to rapid technological changes, both in
Australia and internationally. Emyria faces competition
from existing alternative treatments as well as from
companies developing new products and services
targeting similar medical conditions. There is no
assurance that Emyria will be able to successfully
compete in this landscape. Some of these competing
companies may possess or develop technologies that
are superior to Emyria’s, or have substantially greater
financial, technical, and human resources. As a result,
Emyria’s services, expertise, or products could be
rendered obsolete, less attractive, or uneconomical due
to advances in technology or alternative approaches
developed by Emyria’s competitors.
Intellectual Property (IP): The acquisition and
maintenance of intellectual property rights are crucial
for safeguarding the potential value generated from
biotechnology research and development. Emyria’s
success partially hinges on its capacity to secure
patents, maintain trade secret protection, and operate
without violating the intellectual property rights of
third parties. However, the biotechnology sector is
often fraught with complex and uncertain legal and
factual questions surrounding patent positions. As
such, there is no guarantee that Emyria’s existing or
future patents will provide commercially significant
protection or that they will not infringe upon the rights
of others. Additionally, patent disputes can arise due
to the complex nature of the technologies involved.
The issuance of a patent is not an assurance against
the competitive technologies that may bypass Emyria’s
patented technology. Furthermore, Emyria’s patent
strategies may not offer global coverage, leaving room
for generic competition in some markets.
Manufacturing: The scaling up of manufacturing
processes to support Phase 3 clinical studies requires
ongoing validation and Process Performance
Qualification (PPQ). There is a risk that PPQ may
reveal technical issues that could affect the project’s
timeline and feasibility. These difficulties may include
failure to produce materials meeting regulatory
specifications for human administration or insufficient
product yield to support both clinical studies and
planned commercialisation. Any unforeseen challenges
in the manufacturing process, such as changes
in manufacturing methods, disruptions in supply
chains, shortages of input materials, or changes in
arrangements with third-party manufacturers, could
negatively impact Emyria’s profitability in the future.
Commercialisation: While Emyria’s products such as
our Ultra-Pure CBD capsules (EMD-RX5, EMD-RX7,
and EMD-RX9) and proprietary MDMA analogues
have shown promise in preclinical assays and clinical
trials, they have not yet been approved for commercial
sale. We anticipate that it may take several years
for these products to gain regulatory approval, if
they do at all. If and when approval is granted, there
will be a significant increase in commercialisation
expenses. These costs will be associated with setting
up sales channels, marketing initiatives, distribution
networks, manufacturing capabilities, and supply
chain management. Moreover, the success of these
products is not guaranteed and will depend on market
acceptance by healthcare professionals, patients, and
payors within the medical community.
EMYRIA ANNUAL REPORT 2023 if the defence is ultimately successful. An unsuccessful
defence could result in significant financial damages
and costs levied against Emyria, thereby impacting
its financial stability. Legislative changes, for instance
in antitrust and intellectual property laws, can further
elevate the risks associated with litigation. Additionally,
Emyria may find it necessary to initiate legal
proceedings to defend its intellectual property rights.
The pharmaceutical industry is particularly known for
extensive litigation, including class actions initiated by
end-users or purchasers of pharmaceutical products.
As such, Emyria must be prepared to navigate a
complex legal landscape that poses various risks to its
operations.
Dividend paid and recommended
No dividends have been declared, provided for or paid
in respect of the financial year ended 30 June 2023
(30 June 2022: nil).
13
Reliance on Key Personnel: The success of Emyria is
highly dependent on the expertise and commitment
of its key personnel. These individuals possess unique
skills and knowledge crucial to the development
of our intellectual property, the progression of our
clinical trials and the provision of mental health care
services. As Emyria advances towards drug registration,
the company will require additional specialists in
clinical development, as well as key financial and
administrative staff. Additionally, as Emyria broadens
its scope in the provision of emerging mental health
care services the company will require sufficiently
trained clinicians and support staff. There is no
guarantee that Emyria will succeed in attracting and
retaining qualified personnel. Failure to do so could
significantly hinder our clinical development operations
and could have a material adverse impact on our
financial performance.
Product Safety and Efficacy: The reputation and
commercial success of Emyria hinge on the health,
safety, and efficacy of its products, including our
Ultra-Pure CBD capsules (EMD-RX5, EMD-RX7, and
EMD-RX9) and proprietary MDMA analogues. Serious
or unforeseen health, safety, or efficacy concerns could
result in reduced market acceptance, reputational
damage, product recalls, and potential product liability
claims. While Emyria plans to obtain product liability
insurance to mitigate such risks, there is no assurance
that adequate coverage will be available at a
commercially acceptable cost. Any concerns regarding
the health, safety, or efficacy of our products are likely
to diminish customer demand and adversely affect
Emyria’s profitability.
Litigation: Emyria operates in a sector where the
potential for litigation is high. This includes but is not
limited to, claims related to breaches of agreements,
intellectual property infringement, and employment
issues such as personal injuries and occupational
health and safety. The financial ramifications of
defending against a lawsuit can be substantial, even
EMYRIA ANNUAL REPORT 2023 Information on Directors
& Company Secretary
14
Directors’ Report
Information on Directors and Company Secretary
Dr Stewart Washer
Executive Chairman
Appointed 19 February 2018
Stewart has 25 years of
CEO and board experience
in medical and agri-food
biotech companies. He
is the director of Botanix
Pharmaceuticals Ltd.
He currently serves as the director of Botanix
Pharmaceuticals Ltd (ASX: BOT) and Orthocell Ltd’s
(ASX: OCC) chairman. Stewart is also the Chairman/
Co-Founder of Rumin8, a climate change company
focused on methane reduction technology.
Stewart has held several board positions in successful
companies, including Chairman of Hatchtech Pty Ltd,
which was sold in 2015 for A$279m and was a director
of iCeutica, that was sold to a US Pharma. He has also
contributed to the industry as a Senator with Murdoch
University and a Director of AusBiotech Ltd.
Other current directorships of a public listed company
Orthocell Limited (ASX: OCC)
Appointed as Chairman on 7 April 2014
Botanix Pharmaceuticals Limited (ASX: BOT)
Appointed as Director on 21 February 2019
Former directorships in last three years of a
public listed company
Cynata Therapeutics Limited (ASX: CYP) – appointed as
Director on 1 August 2013, resigned 1 July 2023
Interest in shares and options
Shares
49,658,932
29,950,599 shares are in the control of
Dr Stewart Washer and Dr Patrizia Washer.
Options
1,666,667
Options held are in the control of Dr Stewart Washer
and Dr Patrizia Washer.
Dr Michael Winlo
Managing Director
Appointed 8 November 2019
Michael has a Bachelor of
Medicine and Bachelor of
Surgery with Honours from
the University of Western
Australia as well as a Master
of Business Administration
from Stanford University. Prior to Emyria, Michael
was CEO at Linear Clinical Research Ltd (Linear) until
October 2019 –a company providing clinical trial
services for US- and Asia-based biotech companies.
Linear was the first site in Australia and one of only
a few in the world to successfully adopt electronic
data capture technology. Under Michael’s leadership,
Linear’s revenues grew over 300% in just over three
years (to over $23 million per year). Michael retains
a Directorship at Linear. Prior to Linear, Michael was
Health Lead at Palantir Technologies – a Big Data
company based in Silicon Valley California.
Other current directorships of a public listed company
None
Former directorships in last three years of a
public listed company
None
Interest in shares and options
Shares
Options
282,222
10,611,111
EMYRIA ANNUAL REPORT 2023 15
Professor Alistair Vickery
Executive Medical Director
Appointed 12 November 2018
Dr Karen Smith
Executive Director
Appointed 29 November 2021
Alistair is the medical director
of Emyria and has a wealth of
expertise in clinical practice,
health service management,
clinical and educational
research and board director
skills. He is adjunct Clinical Professor of Primary Health
Care at the University of Western Australia and Notre
Dame University and an active specialist general
practitioner. He was the clinical lead of the research
group CHASM (The Collaborative for Health Care
Analysis and Statistical Modelling) - providing high-
level analysis and statistical modelling to inform clinical
service planning and service evaluation. Alistair is
Board Chair of Black Swan Health, one of the largest
NFP primary health care service providers in Western
Australia, and a Fellow of the Australasian College of
Health Service Management and an AICD graduate.
Other current directorships of a public listed Group
None
Former directorships in last three years of a
public listed Group
None
Interest in shares and options
Shares
Options
266,889
4,069,444
Karen’s experience is a highly
global one. As a Biotech/
Pharmaceutical Executive,
Board Director and Clinical/
Scientific Advisor in the US,
Europe, Canada and Australia,
Dr. Smith has overseen more than 50+ clinical trials and
more than 20 major regulatory approvals in multiple
jurisdictions. Many have led to product launches across
diverse therapeutic areas, including neuroscience,
rare disease, oncology, cardiology, dermatology, and
anti-infectives.
Over the past 20 years, Dr. Smith has held various
executive roles, including President, CEO, Global
Head of R&D, and Chief Medical Officer. She has
built companies from the ground up and is a strong
advocate for women in science and diversity in the
Boardroom. Earlier in her career, she held senior
leadership roles at Allergan, AstraZeneca and Bristol
Myers Squibb.
Dr. Smith holds several degrees, including an MD from
the University of Warwick (UK), a PhD in Oncology
from UCLA (USA)/UWA (Australia), an MBA (Masters
in Business) from the University of New England, and
an LLM (Masters in Law) from the University of Salford
(UK). Dr. Smith has served as a member of the Board of
Directors since November 2021.
Other current directorships of a public listed Group
Sangamo Therapeutics (NASDAQ: SGMO)
Talaris Therapeutics (NASDAQ: TALS)
Former directorships in last three years of a
public listed Group
Forward Pharma (NASDAQ: CM)
Sucampo Pharma (NASDAQ: SCMP)
Acceleron Pharma (NASDAQ: XLRN)
Antares Pharm (NASDAQ: ATRS)
Interest in shares and options
Shares
Options
633,333
1,541,667
EMYRIA ANNUAL REPORT 2023
16
Directors’ Report
Information on Directors and Company Secretary
Professor Sir John Tooke
Non-Executive Director
Appointed 10 February 2020
Sir John is Executive
Chairman of Academic
Health Solutions, a
start-up Group offering
expert advice to clients
internationally on medical
research and innovation strategy and health service
transformation. He is Senior Independent Director at
BUPA Chile and was until 2019 non-executive director
of the BUPA main Board and the Chair of the Medical
Advisory Council. He has recently been appointed as
non-executive director of the Northern Health Science
Alliance in the UK. He is the Chair of Collaboration for
the Advancement of Sustainable Medical Innovation
(CASMI) UCL and Chaired the Oversight Group for the
Academy of Medical Sciences project ‘How we best use
scientific evidence to judge the benefits and harms of
medicines’. He also served as an Independent Review
Board Member for Google DeepMind Health (UK).
Sir John was past Head of the School of Life and
Medical Sciences at University College London (UCL)
as Vice Provost (Health) and Academic Director of UCL
Partners from 2010 - 2015. He is the Past President of
the Academy of Medical Sciences in the UK.
Sir John is a clinician scientist with 30 years’ experience
as a consultant physician specialising in diabetes,
endocrinology, vascular medicine and internal medicine
with broad research experience (basic biomedical,
experimental medicine, and applied health research
including improvement science) recognised through
Fellowship of the Academy of Medical Sciences. He held
a Board position at the Francis Crick Institute (2011
-2015) and was a Member of the Council for Science &
Technology (2011-2015) reporting to the Prime Minister (UK).
Other current directorships of a public
listed company
None
Former directorships in last three years of a
public listed company
None
Interest in shares and options
Shares
Options
nil
1,500,000
Mr Matthew Callahan
Non -Executive Director
Appointed 19 March 2018,
resigned 21 August 2023
Matthew is an experienced
life sciences executive
based in Philadelphia. He
is a founding director of
Emyria and has been the
founding CEO or Executive Director of a number of
pharmaceutical and health tech companies including
Botanix Pharmaceuticals Ltd (ASX: BOT), iCeutica Inc,
Churchill Pharma Inc. Dimerix Biosciences (ASX: DXB)
and Orthocell (ASX: OCC).
He has led the development of four pharmaceutical
products that have received FDA approval and he
has more than 25 years legal, IP and investment
management experience. Mr Callahan has worked
as an investment director for two venture capital
firms investing in life sciences, technology and other
sectors, and was general manager of Australian listed
technology and licensing company ipernica (now
Nearmap ASX: NEA), where he was responsible for the
licensing programs that generated more than $120M in
revenue.
Other current directorships of a public listed Group
Botanix Pharmaceuticals Limited (ASX: BOT)
Appointed as a director 1 July 2016, resigned
23 August 2019 and re-appointed as Director on
10 February 2020
Orthocell Limited (ASX: OCC)
Appointed 30 May 2006, resigned 23 August 2019 and
re-appointed as Director on 10 February 2020
Former directorships in last three years of a
public listed Group
None
Interest in shares and options
Shares
Options
19,655,556
1,527,778
EMYRIA ANNUAL REPORT 2023 17
Dr Mohit Kaushal
Non -Executive Director
Appointed 21 August 2023
Dr. Mohit Kaushal is a
Senior Advisor at General
Atlantic, providing strategic
support and advice to the
firm’s investment teams
and portfolio companies in
Ms Susan Park
Company Secretary
Appointed 1 March 2023
Ms Park is a governance
professional with over
25 years’ experience in
the corporate finance
industry and extensive
experience in Company
the Healthcare sector, drawing on his extensive career
in investing, clinical medicine, academia, and public
policy. Mohit served as a member of the White House
Health IT task force during the Obama Administration
and built and led the first dedicated healthcare team
at the Federal Communications Commission. He
served on the Food and Drug Administration Safety
and Innovation Act Workgroup of the Health IT Policy
Committee and the National Committee on Vital and
Health Statistics, advising Health and Human Services
on data access and use. Mohit is also an ER physician,
an Adjunct Professor of Biomedical Data Science at
Stanford University and continues to be active within
public policy as a Scholar in Residence at the newly
created Duke Margolis Center for Health Policy. Earlier
in his career, he was a Visiting Scholar at the Brookings
Institution
Other current directorships of a public listed Group
None
Former directorships in last three years of a
public listed Group
None
Interest in shares and options
Shares
Options
nil
nil
Performance Rights
2,000,000
Secretary and Non-Executive Director roles in ASX, AIM
and TSX listed companies. Ms Park holds a Bachelor
of Commerce degree from the University of Western
Australia majoring in Accounting and Finance, is
a Member of the Australian Institute of Chartered
Accountants, a Fellow of the Financial Services Institute
of Australasia and a Member of the Australian Institute
of Company Directors. She is also a Fellow of the
Institute of Chartered Secretaries and Administrators
and Chartered Secretaries Australia. She is currently
Company Secretary of several ASX listed companies.
Mr Simon Robertson
Company Secretary
Resigned 1 March 2023
Simon gained a Bachelor of Business from Curtin
University in Western Australia and a Master of Applied
Finance from Macquarie University in New South
Wales. He is a member of the Institute of Chartered
Accountants and Chartered Secretaries Australia.
Simon currently holds the position of company
secretary for a number of publicly listed companies and
has experience in corporate finance, accounting and
administration, capital raising and ASX compliance and
regulatory requirements.
EMYRIA ANNUAL REPORT 2023 18
Directors’ Report
Meeting of Directors
During the financial year ended 30 June 2023, the following table outlines the number of meetings held:
2023 Total remuneration and entitlements
Stewart Washer, Chairman
Michael Winlo, Managing Director
Alistair Vickery, Executive Director
Karen Smith Executive Director
Matthew Callahan, Non-Executive Director
Sir John Tooke, Non-Executive Director
Full meetings
of directors
Risk Committee
Meeting
A
6
6
6
6
6
6
B
6
6
6
6
6
6
A
•
•
2
•
2
2
B
•
•
2
•
2
2
A Number of meetings attended
B Number of meetings held during the time the director held office or
was a member of the committee during the year
• Not a member of the relevant committee
EMYRIA ANNUAL REPORT 2023
19
At the date of this report, the Group has the following options on issue.
Number
600,000
1,950,000
8,500,000
500,000
1,500,000
605,000
150,000
75,000
300,000
10,000,000
6,000,000
200,000
625,000
3,000,000
2,000,000
10,333,328
16,666,666
63,004,994
Exercise Price
Grant Date
Expiry Date
$0.450
$0.114
$0.114
$0.114
$0.268
$0.256
$0.330
$0.316
$0.360
$0.400
$0.550
$0.384
$0.365
$0.296
$0.296
$0.35
$0.30
26 September 2019
26 September 2023
24 September 2020
13 November 2024
13 November 2020
13 November 2024
22 December 2020
22 December 2023
20 February 2021
20 February 2024
18 March 2021
18 March 2024
21 September 2021
21 September 2025
7 October 2021
7 October 2025
1 November 2021
1 November 2025
24 November 2021
24 November 2023
31 December 2021
31 December 2023
8 June 2022
7 June 2026
17 August 2022
16 August 2026
25 October 2022
23 November 2026
24 November 2022
23 November 2026
22 November 2022
22 November 2025
10 May 2023
10 May 2025
During the year, 34,000 options over unissued shares were exercised and 13,512 shares were issued.
In addition, 10,661,451 options were cancelled during the year.
For details of options issued to directors and other key management personnel, please refer to the
Remuneration Report.
EMYRIA ANNUAL REPORT 2023 20
Directors’ Report
Remuneration Report (audited)
This Remuneration Report, which has been audited,
outlines the Key Management Personnel (as defined
in AASB 124 Related Party Disclosures) (“KMP”)
remuneration arrangements for the Group, in
accordance with the requirements of the section 308
(3c) of the Corporations Act 2001 and its Regulations..
The KMP covered in this remuneration report are:
Dr Stewart Washer
Executive Chairman
Dr Michael Winlo
Managing Director
Professor Alistair Vickery
Executive Medical Director
Karen Smith
Executive Director
Mr Matthew Callahan
Non-Executive Director
Professor Sir John Tooke
Non-Executive Director
The principles adopted have been approved by the
Board and have been set out in this Remuneration
Report. This audited Remuneration Report is set out
under the following main headings:
1. Principles used to determine the nature
and amount of remuneration
2. Details of remuneration
3. Service agreements
4. Share-based compensation
The information provided under headings 1 to 4 above
includes remuneration disclosures that are required under
Accounting Standard AASB 124, Related Party Disclosures.
1. Principles used to determine the nature
and amount of remuneration
The objective of the Group’s executive reward
framework is to ensure reward for performance is
competitive and appropriate for the results delivered.
The framework which has been set out in detail under
the remuneration structure in this Remuneration Report
aligns executive reward with achievement of strategic
objectives and the creation of value for shareholders,
and conforms to markets best practice for delivery
of reward. The Board ensures that executive reward
satisfies the following key criteria for good reward
governance practices:
(i) competitiveness and reasonableness;
(ii) aligns shareholders and executive interests;
(iii) performance based and aligned to the successful
achievement of strategic and tactical business
objectives; and
(iv) transparency.
Executive Directors
Remuneration to Executive Directors reflects the
demands which are made on, and the responsibilities
of, the Executive Directors. Executive Directors’
remuneration is reviewed to ensure it is appropriate and
in line with the market. Other than notice periods, there
are no other benefits paid to Executive Directors other
than superannuation guarantee amounts as required
The executive remuneration and reward framework
has four components:
(i) base pay;
(ii) cash bonus;
(iii) share-based payments; and
(iii) other remuneration such as superannuation and
long service leave.
The combination of these comprises the Executive
Director’s total remuneration.
Fixed remuneration, consisting of base salary and
superannuation will be reviewed annually by the
board, based on individual contribution to corporate
performance and the overall relative position of the
Group to its market peers.
Non - Executive Directors
Remuneration to Non-Executive Directors reflects the
demands which are made on, and the responsibilities
of, the Non-Executive Directors. The maximum
aggregate for remuneration of Non-Executive Directors
is set by shareholders and is currently $500,000.
EMYRIA ANNUAL REPORT 2023
21
For the year ended 30 June 2023, exclusive
of superannuation guarantee the annual cash
remuneration paid to Non-Executive Directors was
$50,000 per annum each.
Short-term incentives
The Company’s approach in regard to the use of
short-term cash incentives will be assessed by the
board on an ongoing basis as the Company evolves.
Long-term incentives
To align the board and management with shareholder’s
interests and with market practices of peer companies
and to provide a competitive total remuneration
package, the Board introduced a long-term incentive
(“LTI”) plan to motivate and reward Executives and
Non-Executive Directors. The LTI is provided as options
over ordinary shares of the Group under the rules of the
Securities Incentive Plan. During the year ended 30
June 2023 there were 3,000,000 options issued to an
Executive Director.
Group performance, shareholder wealth and
directors’ and executives’ remuneration
As an early-stage drug development company, the
Board does not consider the operating loss after tax as
one of the performance indicators when implementing
an incentive-based remuneration policy.
The board considers that identification and securing
of new business growth opportunities, the securing of
funding arrangements and responsible management
of cash resources and the Group’s other assets as more
appropriate performance indicators to assess the
performance of management.
No relationship exists between shareholder wealth,
director and executive remuneration and Group
performance as it is an early-stage drug development
company.
The table below shows the losses and earnings per share of the Group for the current and last four financial years.
2023
2022
2021
2020
2019
Net loss
(5,131,117)
(7,327,691)
(4,906,234)
(5,238,040)
(2,682,928)
Share price at year end (cents)
12.50
Loss per share (cents)
(1.79)
19.00
(2.75)
18.50
(2.24)
4.80
(3.04)
N/A*
(2.06)
* The Company was admitted to the ASX on 10 February 2020
EMYRIA ANNUAL REPORT 2023 22
Directors’ report
2. Details of remuneration
Year ended 30 June 2023
The amount of remuneration paid and entitlements owed to KMP is set out below.
2023 Total remuneration and entitlements
Post
Annual
employment
leave
Total cash
Share
Salary and
other fees
Bonus
benefits
(super.1)
entitlement
payments &
based
movement
entitlements
payments Total
LTI
% of
rem.2
Directors
$
S Washer
200,000
M Winlo
380,000
A Vickery2
377,563
K Smith
221,663
M Callahan
50,000
Sir J Tooke
50,000
1,279,226
$
-
-
-
-
-
-
-
$
-
$
-
$
200,000
$
-
$
%
200,000 n/a
39,900
1,135
486,118
199,071
486,118
32.1
9,188
(5,332)
461,887
3,974
461,887
1.0
-
-
-
-
-
-
123,490
27,331
324,240 11.0
50,000
2,981
50,000
5.6
50,000
1,987
50,000
3.8
49,088
(4,197)
1,324,117
235,344
1,559,461
15.1
1
2
super. = superannuation
A Vickery received exemption on superannuation and received the balance of his superannuation
contribution as an additional payment.
There were no non-monetary benefits paid to the Directors or KMP for the year ended 30 June 2023
(30 June 2022: Nil).
Other than those disclosed above, there were no other transactions with related parties to the KMP
for the year ended 30 June 2023.
EMYRIA ANNUAL REPORT 2023 23
Year ended 30 June 2022
The amount of remuneration paid and entitlements owed to KMP is set out below.
2022 Total remuneration and entitlements
Post
Annual
employment
leave
Total cash
Share
Salary and
other fees
Bonus
benefits
(super.1)
entitlement
payments &
based
movement
entitlements
payments Total
LTI
% of
rem.2
Directors
$
S Washer
200,000
$
-
$
-
$
-
$
200,000
M Winlo
486,118
80,000 43,749
4,872
486,118
A Vickery3
461,887
80,000 -
3,141
461,887
$
-
-
-
$
%
200,000
n/a
486,118
n/a
461,887
n/a
K Smith
123,490
M Callahan
50,000
Sir J Tooke
50,000
-
-
-
-
-
-
Other Key
Management Personnel
-
-
-
-
A James4
98,714
8,359
(15,124)
91,949
S Sain5
8,217
P Washer 6
7,306
-
365
731
-
-
8,582
8,037
123,490
200,750
324,240
61.9
50,000
50,000
-
-
-
-
-
50,000
n/a
50,000
n/a
91,949
8,582
8,037
n/a
n/a
n/a
1,273,970
160,000 53,204
(7,111)
1,480,063
200,750
1,680,813
super. = superannuation
rem. = remuneration
A Vickery received exemption on superannuation and received the balance of his superannuation
contribution as an additional payment.
A James resigned effective 31 July 2021
S Sain resigned effective 9 July 2021
P Washer resigned effective 30 July 2021
1
2
3
4
5
6
EMYRIA ANNUAL REPORT 2023 24
Directors’ report
3. Service agreements
For the year ended 30 June 2023, the following service
agreements were in place with the Directors and KMP
of Emyria:
On 27 July 2018, a Consultancy Agreement was entered
into between the Company and Biologica Ventures
Pty Ltd nominating Dr Stewart Washer as Executive
Chairman. Under the terms of the Agreement:
• On 2 December 2019, Dr Washer’s Agreement was
amended to reflect that his annual consultancy
fee to be $200,000 per annum commencing 12
February 2020.
• Dr Washer’s fees were paid to Biologica Ventures Pty Ltd.
• Under the general termination of consultancy
provision, the Company may terminate the
Agreement by giving Dr Washer six months’ notice
or payment in lieu of notice.
• Under the general termination of consultancy
provision, Dr Washer may terminate the Agreement
by giving the Company three months’ notice or
payment in lieu of notice.
•
The Company may terminate the Agreement at
any time without notice if serious misconduct has
occurred. On termination with cause, the Executive
is not entitled to any payment.
On 3 May 2019, a Chief Executive Employment
Agreement (changed to Managing Director effective
26 November 2019) was entered into between the
Company and Managing Director Dr Michael Winlo.
Under the terms of the Agreement:
• Dr Winlo was paid a base salary of $350,000 per
annum plus statutory superannuation which was
increased to $380,000 per annum plus statutory
superannuation effective 1 April 2022.
• Under the general termination of employment
provision, the Company may terminate the
Agreement by giving Dr Winlo three months’ notice
or payment in lieu of notice.
• Under the general termination of employment
provision, Dr Winlo may terminate the Agreement
by giving the Company six months’ notice or
payment in lieu of notice.
•
The Company may terminate the Agreement at
any time without notice if serious misconduct has
occurred. On termination with cause, the Executive
is not entitled to any payment.
On 18 March 2019, a Senior Executive Employment
Agreement was entered into between the Company
and Medical Director Professor Alistair Vickery. Under
the terms of the Agreement:
•
Professor Vickery was paid a base salary
of $350,000 per annum plus statutory
superannuation
• Under the general termination of employment
provision, the Company may terminate the
Agreement by giving Professor Vickery twenty-four
months’ notice or payment in lieu of notice.
• Under the general termination of employment
provision, Professor Vickery may terminate the
Agreement by giving the Company twelve months’
notice or payment in lieu of notice.
•
The Company may terminate the Agreement at
any time without notice if serious misconduct has
occurred. On termination with cause, the Executive
is not entitled to any payment.
On 29 November 2021, a Senior Executive Employment
Agreement was entered into between the Company
and Executive Director, Karen Smith. Under the terms
of the Agreement:
•
Karen Smith was paid a base salary of US$150,000
per annum.
• Under the general termination of employment
provision, the Company may terminate the
Agreement by giving Karen Smith one months’
notice or payment in lieu of notice.
• Under the general termination of employment
provision, Karen Smith may terminate the
Agreement by giving the Company one months’
notice or payment in lieu of notice.
•
The Company may terminate the Agreement at
any time without notice if serious misconduct has
occurred. On termination with cause, the Executive
is not entitled to any payment other than
entitlements accrued.
EMYRIA ANNUAL REPORT 2023 25
On 14 November 2019, an Agreement was entered into
between the Company and Mr Matthew Callahan for
his on-going appointment as Non-Executive Director.
Under the terms of the Agreement:
On 4 November 2019, an Agreement was entered into
between the Company and Professor Sir John Tooke
as Non-Executive Director. Under the terms of the
Agreement:
• Mr Callahan was paid a remuneration package of
• Appointed as Non-Executive Director effective from
$50,000 per annum base salary.
12 February 2020.
•
Termination of this Agreement will be upon the
date provided by either party. There is no notice
period applicable to this Agreement.
• Mr Callahan has a consultancy agreement with
the Group that commenced on 4 November 2019
for a period of three years. Under the terms of the
consultancy agreement:
•
The consultancy services include an hourly rate of
USD $300 per hour and it will be subject to review
on an annual basis.
• Under the general termination of consultancy
provision, the Group may terminate the Agreement
by giving Mr Callahan six month’s notice or
payment in lieu of notice.
• Under the general termination of consultancy
provision, Mr Callahan may terminate the
Agreement by giving the Group six months’ notice
or payment in lieu of notice.
•
The Group may terminate the Agreement at
any time without notice if serious misconduct
has occurred. On termination with cause,
the Consultant will be paid up to the date of
termination.
On 21 August 2023, Mr Callahan resigned as a Non-
Executive Director.
•
•
•
•
Professor Tooke was paid a remuneration package
of $50,000 per annum base salary.
Termination of this Agreement will be upon the
date provided by either party. There is no notice
period applicable to this Agreement.
Professor Tooke has a consultancy agreement with
the Group that commenced on 1 April 2020 for
a period of three years. Under the terms of the
Agreement:
The consultancy services include a rate of
GBP2,500 per day.
• Under the general termination of consultancy
provision, the Group may terminate the Agreement
by giving Professor Tooke one month’s notice or
payment in lieu of notice.
• Under the general termination of consultancy
provision, Professor Tooke may terminate the
Agreement by giving the Group one months’ notice
or payment in lieu of notice.
•
The Group may terminate the Agreement at
any time without notice if serious misconduct
has occurred. On termination with cause,
the Consultant will be paid up to the date of
termination.
EMYRIA ANNUAL REPORT 2023 26
Directors’ report
4. Share-based compensation
Option holdings
The numbers of options in the Group held during the year ended 30 June 2023 by each KMP of Emyria,
including their related parties, are set out below:
Balance
at the start
of the year
Granted
during
the year
Expired
during
the year
Other
changes*
Balance
at the end
of the year
2023
Directors
S Washer
1,500,000
-
M Winlo
7,500,000
3,000,000
A Vickery
4,000,000
K Smith
1,500,000
M Callahan
1,500,000
Sir J Tooke
1,500,000
-
-
-
-
Total
17,500,000
3,000,000
-
-
-
-
-
-
-
166,667
1,666,667
111,111
10,611,111
69,444
4,069,444
41,667
27,778
-
1,541,667
1,527,778
1,500,000
416,667
20,916,667
* the directors participated in a placement which was approved by shareholders at a
General Meeting held 25 January 2023
As at 30 June 2023, the number of options that have vested and exercisable were 11,000,000 and the
number of options yet to vest and un-exercisable were 2,000,000.
The option terms and conditions of each grant of options over ordinary shares affecting remuneration
of Directors and other KMP in the year ended or future reporting years are as follows:
Options issued
Grant
date
Expiry
date
Exercise
price
$
Fair value
per option
$
Vested
% *
Employee Securities Incentive Plan
24 Sep 2020
13 Nov 2024
0.114
0.037
Employee Securities Incentive Plan
13 Nov 2020
13 Nov 2024
0.114
0.032
Employee Securities Incentive Plan
20 Feb 2021
20 Feb 2024
0.268
0.0820
66%
66%
33%
* The vesting conditions are:
• One third immediately on issue;
• One third one year from date of issue subject to continued employment or service and;
• One third two years from date of issue subject to continued employment or service.
During the year 5,625,000 options were issued to KMPs
EMYRIA ANNUAL REPORT 2023
27
Shareholdings
The number of shares in the Group held during the year ended by each KMP of Emyria, including their related
parties, are set out below:
2022
Directors
S Washer
M Winlo
A Vickery
K Smith
M Callahan
J Tooke
Balance at the
start of the year
Other changes
during the year *
Balance at the
end of the year
49,325,599
60,000
128,000
550,000
19,600,000
-
333,333
222,222
138,889
83,333
55,556
-
49,658,932
282,222
266,889
633,333
19,655,556
-
69,663,599
833,333
70,496,932
* the directors participated in a placement which was approved by shareholders at a
General Meeting held 25 January 2023
Use of remuneration consultants
No remuneration consultants were engaged or used for the Group during the year ended 30 June 2023.
Remuneration voting and comments made at the Company’s Annual General Meeting
At the AGM held in 2022, the Company received 99.54% “FOR” votes on its Remuneration Report for the 2022
financial year. The Company did not receive any specific feedback at the AGM on its remuneration practices.
Share trading policy
The trading of shares issued to participants under any of the Group’s employee equity plans is subject to,
and conditional upon, compliance with the Group’s security trading policy as per the Group’s Corporate
Governance Policy. Directors and executives are prohibited from entering into any hedging arrangements
over unvested options under the Group’s employee securities incentive plan.
This concludes the Remuneration Report, which has been audited.
EMYRIA ANNUAL REPORT 2023
28
Directors’ report
Indemnifying officers
During the financial year, the Company has paid a premium of $58,420 excluding GST (2022: $65,492)
to insure the Directors and secretary of the Company. The liabilities insured are legal costs that may
be incurred in defending civil or criminal proceedings that may be brought against the officers in their
capacity as officers of the Company, and any other payments arising from liabilities incurred by the
officers in connection with such proceedings. This does not include such liabilities that arise from conduct
involving a wilful breach of duty by the officers or the improper use by the officers of their position or of
information to gain advantage for themselves or someone else or to cause detriment to the Company. It
is not possible to apportion the premium between amounts relating to the insurance against legal costs
and those relating to other liabilities.
Proceedings on behalf of the Group
No person has applied for leave of Court to bring proceedings on behalf of the Group or intervene in any
proceedings to which the Group is a party for the purpose of taking responsibility on behalf of the Group
for all or any part of those proceedings.
The Group was not a party to any such proceedings during the year.
Auditor
Stantons was appointed as auditors for the Group in office in accordance with section 327 of the
Corporations Act 2001.
Audit Services
During the year ended 30 June 2023 $75,000 (2022: $64,9684) was paid or is payable for audit services
provided by the auditors. There were no non-audit services performed during the financial year.
Indemnity and Insurance of Auditor
The Company has not, during or since the end of the financial year, indemnified or agreed to indemnify
the auditor of the company or any related entity against a liability incurred by the auditor.
During the financial year, the Company has not paid a premium in respect of a contract to insure the
auditor of the company or any related entity.
Auditor’s independence declaration
The auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is
included on page 22 of the financial report.
Signed in accordance with a resolution of the
Board of Directors:
Dr Michael Winlo
Managing Director
27 September 2023
EMYRIA ANNUAL REPORT 2023 29
Financial report
Consolidated Statement of Profit or Loss and Other Comprehensive Income.
For the year ended 30 June 2023
Revenue
Sales revenue
Operating costs
Gross (loss)
Other revenue
Interest and other income
Research and Development grant received
Total other revenue
Expenses
Research and Development expenses
Employee wages and director fees
Corporate compliance costs
Finance costs
Share based payments
Other expenses
Depreciation and amortisation expense
Fixed assets write off
Total expenses
(Loss) before income tax expense
Income tax
Group
2023
$
Notes
Group
2022
$
2(a)
1,592,466
1,822,400
(2,239,975)
(2,347,654)
(647,509)
(525,254)
151,870
120,733
2,089,732
1,162,135
2(a)
2,241,602
1,282,868
(1,798,503)
(2,208,865)
(1,850,319)
(2,268,050)
(784,828)
(526,048)
(128,793)
(72,224)
12
2(b)
2(c)
(422,865)
(1,230,892)
(1,213,234)
(1,389,223)
(400,601)
(390,003)
(126,067)
-
(6,725,210)
(8,085,305)
(5,131,117)
(7,327,691)
3
-
-
(Loss) after income tax for the year
(5,131,117)
(7,327,691)
Other Comprehensive Income for the year:
Items that may be reclassified subsequently to profit or loss
Other Comprehensive income for the year, net of tax
-
-
-
-
Total comprehensive (loss) for the year
(5,131,117)
(7,327,691)
Basic and diluted (loss) per share (cents)
16
(1.79)
(2.75)
The accompanying notes form part of these consolidated financial statements.
EMYRIA ANNUAL REPORT 2023
30
Financial report
Consolidated Statement of Financial Position.
As at 30 June 2023
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Prepayments
Total current assets
Non-current assets
Restricted cash
Right-of-use assets
Plant and equipment
Intangible assets
Total non-current assets
Total assets
LIABILTIES
Current liabilities
Trade and other payables
Borrowings
Provisions
Lease liabilities
Total current liabilities
Non-current liabilities
Provisions
Lease liabilities
Total non-current liabilities
Total liabilities
Net assets
EQUITY
Contributed equity
Reserves
Accumulated losses
Total equity
Group
2023
$
Notes
Group
2022
$
4
5
6
7
8
9
10
11
9
11
9
12
14
2,733,526
3,879,469
85,482
33,260
87,487
148,246
2,852,268
4,115,202
144,582
371,905
161,302
737,419
124,060
339,007
6,671,143
2,894,905
7,311,690
4,132,633
10,163,958
8,247,835
1,829,194
988,889
912,721
189,021
-
197,386
218,284
268,887
3,149,220
1,455,162
81,000
140,123
221,123
107,000
363,816
470,816
3,370,343
1,925,978
6,793,615
6,321,857
29,803,915
24,637,314
2,407,841
1,971,567
(25,418,141)
(20,287,024)
6,793,615
6,321,857
The accompanying notes form part of these consolidated financial statements.
EMYRIA ANNUAL REPORT 2023
31
Consolidated Statement of Changes in Equity.
For the year ended 30 June 2023
Group
Contributed
equity
$
Reserves
$
Accumulated
Losses
$
Total
equity
$
Balance at 1 July 2022
24,637,314
1,971,567
(20,287,024)
6,321,857
(Loss) after income tax for the year
Other comprehensive income for the year,
net of tax
Total comprehensive loss
Proceeds from issued capital
Exercise of options
Transaction costs from
issued capital
Issue of options
-
-
-
5,500,000
1,027
(334,426)
-
-
-
-
-
-
436,274
(5,131,117)
(5,131,117)
-
-
(5,131,117)
(5,131,117)
-
-
-
5,500,000
1,027
(334,426)
436,274
Balance at 30 June 2023
29,803,915
2,407,841
(25,418,141)
6,793,615
Contributed
equity
$
Reserves
$
Accumulated
Losses
$
Total
equity
$
Balance at 1 July 2021
19,310,804
826,746
(12,959,333)
7,178,217
(Loss) after income tax for the year
Other comprehensive income for the year,
net of tax
Total Comprehensive loss
-
-
-
Proceeds from issued capital
5,326,510
Transaction costs from
issued capital
Issue of options
-
-
-
-
-
-
-
1,144,821
(7,327,691)
(7,327,691)
-
-
(7,327,691)
(7,327,691)
-
-
-
5,326,510
-
1,144,821
Balance at 30 June 2022
24,637,314
1,971,567
(20,287,024)
6,321,857
The accompanying notes form part of these consolidated financial statements.
EMYRIA ANNUAL REPORT 2023
32
Financial report
Consolidated Statement of Cash Flows.
For the year ended 30 June 2023
Cash flows from operating activities
Receipts from customers
Interest received
Payments to suppliers and employees
Interest and other finance costs paid
R&D refund received
Group
2023
$
Notes
Group
2022
$
1,816,265
1,933,911
24,491
12,559
(7,617,823)
(8,484,173)
(84,225)
(52,254)
2,089,732
1,162,135
Net cash (used in) operating activities
15
(3,771,560)
(5,427,822)
Cash flows from investing activities
Payments for plant and equipment
Payments for intangible assets
Net cash (used in) investing activities
Cash flows from financing activities
Proceeds from issue of shares
Transaction costs paid from the issue of shares
Proceeds from borrowings
Repayment of borrowings
Repayment of lease liabilities
Net payments cash backed guarantees
(restricted cash)
(16,751)
(52,848)
(3,216,895)
(1,976,338)
(3,233,646)
(2,029,185)
5,500,000
5,039,689
(320,000)
1,719,927
(800,000)
-
-
-
9
(257,384)
(232,701)
16,720
562
Net cash provided by financing activities
5,859,263
4,807,550
Net (decrease) / increase in cash and cash equivalents
(1,145,943)
(2,649,457)
Cash and cash equivalents at the beginning of the year
3,879,469
6,528,926
Cash and cash equivalents at the end of the year
4
2,733,526
3,879,469
The accompanying notes form part of these financial statements.
EMYRIA ANNUAL REPORT 2023
33
Notes to the consolidated financial statements
For the year ended 30 June 2023
Emyria Limited (“Emyria” or “the Company”) is a Company incorporated in Australia whose shares are publicly
traded on th Australian Securities Exchange (“ASX”).
The consolidated financial statements of the Group as at and for the year ended 30 June 2023 comprise the
Company and its subsidiaries (together referred to as the “Group” or “consolidated entity” and individually as a
“Group entity”).
The separate financial statements of the parent entity, Emyria Limited, have not been presented with this
financial report. Summary parent information has been included in note 18.
Note 1: statement of significant
accounting policies
1.1 Basis of Preparation
(ii) Critical accounting estimates
The financial report is a general purpose financial
report that has been prepared in accordance with
Australian Accounting Standards, Australian Accounting
Interpretations, other authoritative pronouncements
of the Australian Accounting Standards Board (“AASB”)
and the Corporations Act 2001.
Australian Accounting Standards set out accounting
policies that the AASB has concluded would result in
a financial report containing relevant and reliable
information about transactions, events and conditions
to which they apply.
The consolidated financial statements and notes
also comply with International Financial Reporting
Standards as issued by the International Accounting
Standard Board (IASB). Material accounting policies
adopted in the preparation of this financial report
are presented below. They have been consistently
applied unless otherwise stated.
The Group is a for-profit entity for financial reporting
purposes under Australian Accounting Standards.
The consolidated financial statements have been
prepared on a going concern basis which contemplates
the continuity of normal business activities and the
realisation of assets and the settlement of liabilities
in the ordinary course of business. The financial
statements are presented in Australian Dollars (“AUD”).
(i) Historical cost convention
The consolidated financial statements have been
prepared under the historical cost convention, except
for, where applicable, the revaluation of financial
assets, financial assets and liabilities at fair value
through profit or loss, investment properties, certain
classes of property, plant and equipment and
derivative financial instruments.
The preparation of the financial statements requires
the use of certain critical accounting estimates. It
also requires management to exercise its judgement
in the process of applying the consolidated entity’s
accounting policies. The areas involving a higher
degree of judgement or complexity, or areas where
assumptions and estimates are significant to the
financial statements, are disclosed in note 1.1 (vi).
(iii) Operating segments
Operating segments are presented using the
‘management approach’, where the information
presented is on the same basis as the internal reports
provided to the Chief Operating Decision Makers
(‘CODM’). The CODM is responsible for the allocation
of resources to operating segments and assessing
their performance.
(iv) Going Concern
As of 30 June 2023, the Group had net working capital
(deficit) of $(296,952) (2022: net surplus $2,660,040)
and cash balance of $2,733,526 (2022: $3,879,469).
The Group did not have any capital commitments of as
of 30 June 2023.
The Directors have prepared projected cash flow
information for the twelve months from the date of
approval of these financial statements taking into
consideration the placement completed in September
2023. In response to the uncertainty arising from this,
the Directors have considered severe but plausible
downside forecast scenarios.
These forecasts indicate that, taking account of
reasonably possible downsides, the Group is expected
to continue to operate, with headroom and within
available cash levels.
EMYRIA ANNUAL REPORT 2023
34
Notes to the consolidated financial statements
For the year ended 30 June 2023
Note 1: (continued)
Key to the forecasts are relevant assumptions regarding
the business, business model, any legal or regulatory
restrictions and shareholder support, in particular:
• Details of the results of the key scenario modelling
on the entity’s ability to meet its obligations over
the forecast period.
• Mitigating actions undertaken or planned by
directors and group to manage and respond to
cash flow uncertainties or potential risks of shortfall
in financing and the implementation status and
uncertainties that arise from them.
The Directors secured a loan facility with Radium
Capital for $919,158 in May 2023 secured against
expected R&D Tax Incentive claim. At the date of this
report, the Company has drawn down the full amount
of the facility.
The Directors are satisfied they will be able to raise
additional funds as required and thus it is appropriate
to prepare the financial statements on a going concern
basis. The Directors are confident that the operations of
the Group will continue to grow with the assistance of
raising additional funds.
If necessary, the Group can delay research and
development expenditures and Directors can also
institute cost saving measures to further reduce
corporate and administrative costs or explore other
opportunities to sell data and/or its clinics. In the event
that the Group is unable to obtain sufficient funding
for ongoing operating and capital requirements, there
is a material uncertainty that may cast significant
doubt as to whether the Group will continue as a going
concern and therefore proceed with realising its assets
and discharging its liabilities in the normal course of
business at the amounts stated in the financial report.
The consolidated financial statements do not include
any adjustment relating to the recoverability or
classification of recorded asset amounts or to the
amounts or classification of liabilities that may be
necessary should the Group not be able to continue as
a going concern.
(v) New and amended standards
adopted by the Group
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.
(vi) Use of estimates and judgement
The preparation of the consolidated financial
statements requires management to make
judgements, estimates and assumptions that affect
the reported amounts in the financial statements.
Management continually evaluates its judgements and
estimates in relation to assets, liabilities, contingent
liabilities, revenue and expenses.
Management bases its judgements, estimates and
assumptions on historical experience and on other
various factors, including expectations of future events,
management believes to be reasonable under the
circumstances. The resulting accounting judgements
and estimates will seldom equal the related actual results.
The judgements, estimates and assumptions that have
a significant risk of causing a material adjustment to
the carrying amounts of assets and liabilities (refer to
the respective notes) within the next financial year are
discussed below.
EMYRIA ANNUAL REPORT 2023 35
The value in use calculation is based on a Discount
Cash Flow (“DCF”) model. The cash flows are derived
from the budget for the next five years and do not
include restructuring activities that the Group is not
yet committed to or significant future investments
that will enhance the asset’s performance of the CGU
being tested. The recoverable amount is sensitive to
the discount rate used for the DCF model as well as the
expected future cash-inflows and the growth rate used
for extrapolation purposes.
Capitalisation of internally developed
project development
Distinguishing the research and development phases of
a new project development and determining whether
the recognition requirements for the capitalisation
of development costs are met requires judgement.
After capitalisation, management monitors whether
the recognition requirements continue to be met and
whether there are any indicators that capitalised costs
may be impaired
Determining the lease term of contract with renewal
and termination options – Group as lessee
The Group determines the lease term as the non-
cancellable term of the lease, together with any
periods covered by an option to extend the lease if it
is reasonably certain to be exercised, or any periods
covered by an option to terminate the lease, if it is
reasonably certain not to be exercised. The Group has a
lease contract that includes an extension option.
The Group applies judgement in evaluating whether
it is reasonably certain whether or not to exercise
the option to renew the lease. That is, it considers all
relevant factors that create an economic incentive for
it to exercise the renewal. After the commencement
date, the Group reassesses the lease term if there is
a significant event or change in circumstances that is
within its control and affects its ability to exercise or not
to exercise the option to renew or to terminate (e.g.,
construction of significant leasehold improvements or
significant customisation to the leased asset).
Share-based payment transactions
The Group measures the cost of equity-settled
transactions by reference to the fair value of the equity
instruments at the date at which they are granted.
The fair value is determined by using the Black-
Scholes model taking into account the terms and
conditions upon which the instruments were granted.
The accounting estimates and assumptions relating to
equity-settled share-based payments would have no
impact on the carrying amounts of assets and liabilities
within the next annual reporting period but may
impact profit or loss and equity. Refer to note 13.
Provision for impairment of receivables
Included in trade and other receivables at the end of
the reporting period is an amount of $nil (2022: $nil)
that is outstanding for more than 30 days. While there
is inherent uncertainty, the directors understand that
the full amount of debt is likely to be received and
therefore no provision for impairment has been made.
Provision for impairment of property, plant
and equipment
Property, plant and equipment is stated at cost less
accumulated depreciation and impairment. Cost
includes expenditure that is directly attributable to the
acquisition of the item.
Depreciation is provided on property, plant and
equipment. Depreciation is calculated on a straight-
line basis so as to write down the net cost or fair
value of each asset over its expected useful life to its
estimated residual value.
The estimated useful lives, residual values and
depreciation method are reviewed at the end of each
annual reporting period. The estimated useful life of
the property, plant and equipment as at reporting date
is 5 years.
Impairment of non-financial assets
Impairment exists when the carrying value of an asset
or cash generating unit (“CGU”) exceeds its recoverable
amount, which is the higher of its fair value less costs of
disposal and its value in use.
The fair value less costs of disposal calculation is based
on available data from binding sales transactions,
conducted at arm’s length, for similar assets or
observable market prices less incremental costs for
disposing of the asset.
EMYRIA ANNUAL REPORT 2023
36
Notes to the consolidated financial statements
For the year ended 30 June 2023
Note 1: (continued)
(vii) Principles of consolidation
The consolidated financial statements incorporate the
assets, liabilities and results of entities controlled by
Emyria at the end of the reporting year. A controlled
entity is any entity over which Emyria has the ability
and right to govern the financial and operating policies
so as to obtain benefits from the entity’s activities.
Where controlled entities have entered or left the
Group during the year, the financial performance of
those entities is included only for the period of the year
that they were controlled. A list of controlled entities is
contained in note 22 to the financial statements.
In preparing the consolidated financial statements, all
intragroup balances and transactions between entities
in the consolidated Group have been eliminated in full
on consolidation.
(viii) New and Amended Accounting Policies Not Yet
Adopted by the Group/Company
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 2022-6: Amendments to Australian Accounting
Standards – Non-current Liabilities with Covenants
AASB 2022-6 amends AASB 101 to improve the
information an entity provides in its financial
statements about liabili-ties arising from loan
arrangements for which the entity’s right to defer
settlement of those liabilities for at least 12 months
after the reporting period is subject to the entity
complying with conditions specified in the loan
arrange-ment. It also amends an example in Practice
Statement 2 regarding assessing whether information
about covenants is material for disclosure.
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 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.
EMYRIA ANNUAL REPORT 2023 37
AASB 2021-7b & c: Amendments to Australian
Accounting Standards – Effective Date of
Amendments to AASB 10 and AASB 128 and Editorial
Corrections
AASB 2021-7b makes various editorial corrections to
AASB 17 Insurance Contracts which applies to annual
reporting periods beginning on or after 1 January 2023,
with earlier application permitted.
dates of the transactions. Foreign exchange gains
and losses resulting from the settlement of such
transactions and from the translation of monetary
assets and liabilities denominated in foreign currencies
at year end exchange rates are generally recognised in
profit or loss. They are deferred in equity if they relate
to qualifying cash flow hedges and qualifying net
investment hedges or are attributable to part of the
net investment in a foreign operation.
AASB 2021-7c defers the mandatory effective date
(application date) of amendments to AASB 10 and
AASB 128 that were originally made in AASB 2014-10:
Amendments to Australian Accounting Standards –
Sale or Contribution of Assets between an Investor and
its Associate or Joint Venture so that the amendments
are required to be applied for annual reporting periods
beginning on or after 1 January 2025 instead of 1
January 2018.
The Group plans on adopting the amendments for the
reporting periods ending 30 June 2024 and 30 June
2026. The impact of initial application is not yet known.
AASB 2022-7: Editorial Corrections to Australian
Accounting Standards and Repeal of Superseded and
Redundant Standards
AASB 2022-7 makes editorial corrections to the
following standards: AASB 7, AASB 116, AASB 124, AASB
128, AASB 134 and AASB as well as to AASB Practice
Statement 2. It also formally repeals superseded and
redundant Australian Account Standards as set out in
Schedules 1 and 2 to the Standard.
The Group plans on adopting the amendments for the
reporting period ending 30 June 2024.
The amendment is not expected to have a material
impact on the financial statements once adopted.
Note 1.2: Significant Accounting Policies
(i) Foreign currency translation
Functional and presentation currency
Items included in the financial statements of each of
the Group’s entities are measured using the currency
of the primary economic environment in which the
entity operates (“the functional currency”). The
consolidated financial statements are presented in the
Australian dollar ($), which is the Group’s functional and
presentation currency.
Transactions and balances
Foreign currency transactions are translated into the
functional currency using the exchange rates at the
Foreign exchange gains and losses that relate to
borrowings are presented in the statement of profit or
loss, within finance costs. All other foreign exchange
gains and losses are presented in the consolidated
statement of profit or loss on a net basis within other
income or other expenses.
Non-monetary items that are measured at fair value in
a foreign currency are translated using the exchanges
rates at the date when the fair value was determined.
Translation differences on assets and liabilities carried
at fair value are reported as part of the fair value gain
or loss. For example, translation difference on non-
monetary assets and liabilities such as equities held
at fair value through profit or loss are recognised in
profit or loss as part of the fair value gain or loss and
translation differences on non-monetary assets such as
equities classified as financial assets are recognised in
other comprehensive income.
Group companies
The results and financial position of foreign operations
(none of which has the currency of a hyperinflationary
economy) that have a functional currency different
from the presentation currency are translated into the
presentation currency as follows:
•
•
assets and liabilities for each statement of financial
position presented are translated at the closing
rate at the date of that statement of financial
position,
income and expenses for each statement of profit
or loss and statement of comprehensive income are
translated at average exchange rates (unless this is
not a reasonable approximation of the cumulative
effect of the rates prevailing on the transaction
dates, in which case income and expenses are
translated at the dates of the transactions), and
•
all resulting exchange differences are recognised in
other comprehensive income.
EMYRIA ANNUAL REPORT 2023
38
Notes to the consolidated financial statements
For the year ended 30 June 2023
Note 1.2: (continued)
On consolidation, exchange differences arising from
the translation of any net investment in foreign entities,
and of borrowings and other financial instruments
designated as hedges of such investments, are
recognised in other comprehensive income. When a
foreign operation is sold or any borrowings forming
part of the net investment are repaid, the associated
exchange differences are reclassified to profit or loss, as
part of the gain or loss on sale.
Goodwill and fair value adjustments arising on the
acquisition of a foreign operation are treated as assets
and liabilities of the foreign operation and translated
at the closing rate.
(ii) Revenue from contracts with customers
AASB 15 establishes a five-step model to account for
revenue arising from contracts with customers and
requires that revenue to be recognised at an amount
that reflects the consideration to which an entity
expects to be entitled in exchange for transferring
goods or services to a customer.
The five-step process outlined in AASB 15 are as follows:
•
•
•
•
•
identify the contract(s) with a customer;
identify the performance obligations in the
contract(s);
determine the transaction price;
allocate the transaction price to the performance
obligations in the contract(s); and
recognise revenue when (or as) the performance
obligations are satisfied.
Revenue is recognised when or as a performance
obligation in the contract with customer is satisfied, i.e.
when the control of the goods or services underlying
the particular performance obligation is transferred to
the customer.
A performance obligation is a promise to transfer a
distinct goods or service (or a series of distinct goods
or services that are substantially the same and that
have the same pattern of transfer) to the customer that
is explicitly stated in the contract and implied in the
Group’s customary business practices.
Revenue is measured at the amount of consideration
to which the Group expects to be entitled in exchange
for transferring the promised goods or services to the
customers, excluding amounts collected on behalf of
third parties such as sales taxes or services taxes.
If the amount of consideration varies due to discounts,
rebates, refunds, credits, incentives, penalties or
other similar items, the Group estimates the amount
of consideration to which it will be entitled based
on the expected value or the most likely outcome. If
the contract with customer contains more than one
performance obligation, the amount of consideration
is allocated to each performance obligation based on
the relative stand-alone selling prices of the goods or
services promised in the contract.
Revenue is recognised to the extent that it is highly
probable that a significant reversal in the amount of
cumulative revenue recognised will not occur when the
uncertainty associated with the variable consideration
is subsequently resolved.
The control of the promised goods or services may be
transferred over time or at a point in time. The control
over the goods or services is transferred over time and
revenue is recognised over time if:
•
•
•
the customer simultaneously receives and
consumes the benefits provided by the Group’s
performance as the Group performs;
the Group’s performance creates or enhances an
asset that the customer controls as the asset is
created or enhanced; or
the Group’s performance does not create an asset
with an alternative use and the Group has an
enforceable right to payment for performance
completed to date.
Revenue for performance obligation that is not
satisfied over time is recognised at the point in time
at which the customer obtains control of the promised
goods or services.
(a) Sales of service (revenue from patients and
research projects and data deals)
Revenue from rendering of service is recognised
upon the delivery of service to the customers.
(b) Research and development tax incentive
Refund amounts receivable under the Federal
Government’s Research and Development Tax
Incentives are recognised as other income in the
period it is received.
EMYRIA ANNUAL REPORT 2023
39
(c) Interest income
Interest income is accrued on a time basis, by
reference to the principal outstanding and at the
effective interest rate applicable, which is the
rate that exactly discounts estimated future cash
receipts through the expected life of the financial
asset to that assets’ net carrying amount on initial
recognition.
(d) Government grants
Government grants are assistance by the
government in the form of transfers of resources to
the Group in return for past or future compliance
with certain conditions relating to the operating
activities of the entity.
Government grants include government assistance
where there are no conditions specifically relating
to the operating activities of the Group other than
the requirement to operate in certain regions or
industry sections.
Government grants relating to income are
recognised as income over the periods necessary
to match them with the related costs and grants
relating to assets are regarded as a reduction in
asset.
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 net of expenses
(iii) Cash and cash equivalents
Cash and cash equivalents include cash on hand and
deposits with banks and highly liquid investments with
original maturities of three months or less.
(iv) Trade and other payables
Trade and other payables represent the liability
outstanding at reporting date for goods and services
received by the Group during the reporting year, which
remain unpaid. The balance is recognised as a current
liability with the amounts normally paid within 30 days
of recognition of the liability.
(v) Income Tax
The income tax expense or revenue for the year is
the tax payable on the current year’s taxable income
based on the applicable income tax rate for each
jurisdiction adjusted by changes in deferred tax assets
and liabilities attributable to temporary differences
and to unused tax losses.
Deferred income tax is provided on all temporary
differences at the balance sheet date between the
tax bases of the assets and liabilities and their carrying
amounts for financial reporting purposes.
Deferred income tax liabilities are recognised for all
taxable temporary differences except where the
deferred income tax arises from the initial recognition
of an asset or liability in a transaction that is not a
business combination and, at the time of transaction,
affects neither the accounting profit nor taxable profit
or loss.
Deferred income tax assets are recognised for all
deductible temporary differences, carry forward of
unused tax assets and unused tax losses, to the extent
that it is probable that taxable profit will be available
against which the deductible temporary differences,
and the carry forward of unused tax assets and unused
tax losses can be utilised except where the deferred
income tax asset relating to the deductible temporary
difference arises from the initial recognition of an
asset or liability in a transaction that is not a business
combination and, at the time of the transaction,
affects neither the accounting profit nor taxable profit
or loss.
The carrying amount of deferred income tax assets is
reviewed at each balance sheet date and reduced to
the extent that it is no longer probable that sufficient
taxable profit will be available to allow all or part of the
deferred income tax asset to be utilised.
Deferred income tax assets and liabilities are measured
at the tax rates that are expected to apply to when
the asset is realised or the liability is settled, based on
tax rates of (and tax laws) that have been enacted
or substantially enacted at the balance sheet date.
Income taxes relating to items recognised directly
in equity are recognised in equity and not in the
consolidated statement of comprehensive income.
(vi) Issued capital
Ordinary shares are classified as equity. Incremental
costs directly attributable to the issue of new shares or
options are shown in equity as a deduction, net of tax,
from the proceeds.
EMYRIA ANNUAL REPORT 2023
40
Notes to the consolidated financial statements
For the year ended 30 June 2023
Note 1.2: (continued)
Basic earnings/(loss) per share
Basic earnings/(loss) per share is calculated by dividing:
Subsequent measurement
The Group’s financial assets at amortised cost includes
trade and other receivables.
•
The profit/(loss) attributable to owners of the
Group, excluding any costs of servicing equity other
than ordinary shares
By the weighted average number of ordinary shares
outstanding during the financial year, adjusted for bonus
elements in ordinary shares issued during the year.
Impairment of financial assets
For trade receivables, the Group applies a simplified
approach in calculating expected credit losses (“ECLs”).
Therefore, the Group does not track changes in credit
risk, but instead recognises a loss allowance based on
lifetime ECLs at each reporting date.
(vii) Impairment of assets
At each reporting date, the Group reviews the carrying
values of its tangible assets to determine whether there
is an indication that those assets have been impaired.
If such an indication exists, the recoverable amount
of the asset, being the higher of the asset’s fair value
less costs to sell and value in use, is compared to the
asset’s carrying value. Any excess of the asset’s carrying
value over its recoverable amount is expensed to the
statement of comprehensive income.
(viii) Financial instruments
Classification and measurement
Under AASB 9, the Group initially measures a financial
asset as its fair value plus, in the case of financial asset
not at fair value through profit or loss, transaction costs.
Financial assets are then subsequently measured at fair
value through profit or loss (“FVTPL”), amortised cost, or
fair value through other comprehensive income (“FVOCI”).
Initial recognition and measurement
Financial assets are classified at initial recognition and
subsequently measured at amortised cost, fair value
through other comprehensive income (OCI), and fair
value through profit or loss.
The classification of financial assets at initial
recognition depends on the financial asset’s
contractual cash flow characteristics and the Group’s
business model for managing them. With the exception
of trade receivables that do not contain a significant
financing component or for which the Group has
applied the practical expedient, the Group initially
measures a financial asset at its fair value plus, in the
case of a financial asset not at fair value through profit
or loss, transaction costs.
Trade receivables that do not contain a significant
financing component or for which the Group has
applied the practical expedient are measured at the
transaction price determined under AASB 15.
FINANCIAL LIABILITIES
Initial recognition and measurement
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.
All financial liabilities are recognised initially at fair
value and, in the case of loans and borrowings and
payables, net of directly attributable transaction costs.
The Group’s financial liabilities include trade and other
payables and lease liabilities.
SUBSEQUENT MEASUREMENT
Loans and borrowings
After initial recognition, interest-bearing loans and
borrowings are subsequently measured at amortised
cost using the effective interest rate method. Gains
and losses are recognised in profit or loss when the
liabilities are derecognised as well as through the
effective interest rate amortisation process. Amortised
cost is calculated by taking into account any discount
or premium on acquisition and fees or costs that are an
integral part of the effective interest rate. The effective
interest rate amortisation is included as finance costs in
the statement of profit or loss. This category generally
applies to interest-bearing loans and borrowings.
Derecognition
A financial liability is derecognised when the obligation
under the liability is discharged or cancelled or
expires. When an existing financial liability is replaced
by another from the same lender on substantially
different terms, or the terms of an existing liability
are substantially modified, such an exchange or
modification is treated as the derecognition of the
original liability and the recognition of a new liability.
The difference in the respective carrying amounts is
recognised in the statement of profit or loss.
EMYRIA ANNUAL REPORT 2023
41
(ix) Property, plant and equipment
(i) Recognition and measurement
Items of property, plant and equipment are
measured at cost less accumulated depreciation
and accumulated impairment losses. Cost
includes expenditure that is directly attributable
to the acquisition of the asset.
The cost of self-constructed assets includes the
cost of materials and direct labour, any other
costs directly attributable to bringing the assets
to a working condition for their intended use, the
costs of dismantling and removing the items and
restoring the site on which they are located and
capitalised borrowing costs.
Gains and losses on disposal of an item of
property, plant and equipment are determined
by comparing the proceeds from disposal with
the carrying amount of property, plant and
equipment and are recognised net within other
income in profit or loss. When revalued assets
are sold, the amounts included in the revaluation
reserve are transferred to retained earnings.
(ii) Subsequent costs
The cost of replacing a part of an item of
property, plant and equipment is recognised in
the carrying amount of the item if it is probable
that the future economic benefits embodied
within the part will flow to the Group, and its cost
can be measured reliably. The carrying amount
of the replaced part is derecognised. The costs
of the day-to-day servicing of property, plant
and equipment are recognised in profit or loss as
incurred.
(iii) Depreciation
Depreciation is calculated over the depreciable
amount, which is the cost of an asset, or other
amount substituted for cost, less its residual
value.
Depreciation is recognised in the profit or loss on
a straight-line basis over the estimated useful
lives of each part of an item of property, plant
and equipment, since this most closely reflects
the expected pattern of consumption of the
future economic benefits embodied in the asset
Right-of-use assets are generally depreciated
over the shorter of the assets’ useful life and the
lease term on a straight-line basis.
The depreciation rates used for each class
of asset are:
• fixtures and fittings
20 - 40%
• leasehold improvements
• computer equipment and software 20 - 40%
20%
• Right-of-use assets
20%
Depreciation methods, useful lives and residual
values are reviewed at each financial year-end and
adjusted if appropriate.
(x) Intangible assets
(a) Software
Costs associated with maintaining software
programmes are recognised as an expense
as incurred. Development costs that are
directly attributable to the design and testing
of identifiable and unique software products
controlled by the Group is recognised if, and only
if, all of the following have been demonstrated:
where the following criteria are met:
•
it is technically feasible to complete the
software so that it will be available for use,
• management intends to complete the
software and use or sell it,
• there is an ability to use or sell the software,
•
it can be demonstrated how the software will
generate probable future economic benefits,
• adequate technical, financial and other
resources to complete the development and
to use or sell the software are available, and
• the expenditure attributable to the software
during its development can be reliably
measured.
The Group amortises software with a limited useful life
using the straight-line method between 2-5 years.
(b) Research and development costs
Research costs are expenses as incurred. Development
expenditures on an individual project are recognised as
an intangible asset when the Group can demonstrate:
• the technical feasibility to complete the
intangible asset so that the asset will be
available for use or sale,
•
its intention to complete and its ability and
intention to use or sell the asset,
• how the asset will generate future economic
benefits,
• the availability of resources to complete the
development of the asset, and
• the ability to measure reliably expenditure
during development.
EMYRIA ANNUAL REPORT 2023
42
Notes to the consolidated financial statements
For the year ended 30 June 2023
Note 1.2: (continued)
Directly attributable costs that are capitalised
include employee costs and an appropriate
portion of relevant overheads. Capitalised
development costs are recorded as intangible
assets and amortised from the point at which the
asset is ready for use.
Following initial recognition of the development
expenditure as an asset, the asset is carried at
cost less any accumulated amortisation and
accumulated impairment losses. Amortisation of
the asset begins when development is complete
and the asset is available for use. It is amortised
over the period of expected future benefit.
Amortisation is recorded in cost of sales. During
the period of development, the asset is tested
annually for impairment.
(c)
Intangible assets acquired separately
Intangible assets acquired separately are recorded
at cost less accumulated amortisation and
impairment. Amortisation is charged on a straight-
line basis over their estimated useful lives when
available for use. The estimated useful life and
amortisation method is reviewed at the end of
each annual reporting period, with any changes in
these accounting estimates being accounted for
on a prospective basis.
(xi) Provisions
Provisions are recognised when the Group has a present
obligation (legal or constructive) as a result of a past
event, it is probable that an outflow of resources
embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made of
the amount of the obligation.
When the Group expects some or all of a provision to
be reimbursed the reimbursement is recognised as a
separate asset but only when the reimbursement is
virtually certain. The expense relating to any provision is
presented in the Statement of Profit or Loss and Other
Comprehensive Income net of any reimbursement.
Provisions are measured at the present value of
management’s best estimate of the expenditure
required to settle the present obligation at the
reporting date. The discount rate used to determine the
present value reflects current market assessments of the
time value of money and the risks specific to the liability.
The increase in the provision resulting from the passage
of time is recognised in finance costs.
(xii) Employee benefits
(a) Equity settled compensation
The Group operates equity-settled share-based
payment employee share and option schemes. The
fair value of the equity to which employees become
entitled is measured at grant date and recognised
as an expense over the vesting period, with a
corresponding increase to an equity account. The
fair value of shares is ascertained as the market bid
price. The fair value of options is ascertained using
a Black–Scholes pricing model which incorporates
all market vesting conditions. The number of
shares and options expected to vest is reviewed
and adjusted at each reporting date such that
the amount recognised for services received as
consideration for the equity instruments granted
shall be based on the number of equity instruments
that eventually vest.
(b) Short-term obligations
Liabilities for wages and salaries, including non-
monetary benefits and annual leave expected to
be settled within 12 months after the end of the
period in which the employees render the related
service are recognised in respect of employees’
services up to the end of the reporting period and
are measured at the amounts expected to be
paid when the liabilities are settled.
The liability for annual leave is recognised in the
provision for employee benefits. All other short-
term employee benefit obligations are presented
as payables.
(c) Other long-term employee benefit obligations
The liability for long service leave and annual
leave which is not expected to be settled within
12 months after the end of the period in which
the employees render the related service is
recognised in the provision for employee benefits
and measured as the present value of expected
future payments to be made in respect of services
provided by employees up to the end of the
reporting period 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
end of the reporting period on national government
bonds with terms to maturity and currency that
match, as closely as possible, the estimated future
cash outflows.
(d) Share-based payments
Share-based compensation benefits are provided
to directors, employees and consultants via the
option terms and conditions set out by the Group.
EMYRIA ANNUAL REPORT 2023
43
which are disclosed as operating cash flows. The net
amount of GST recoverable from, or payable to, the
taxation authority is included with other receivables or
payables in the statements of financial position.
(xiv) ROU assets and lease liabilities
At inception of a contract, the Company assesses if
the contract contains or is a lease. If there is a lease
present, a right-of-use asset and a corresponding lease
liability is recognised by the Group where the Group is
a lessee. However, all contracts that are classified as
short-term leases (lease with remaining lease term of
12 months or less) and leases of low-value assets are
recognised as an operating expense on a straight-line
basis over the term of the lease.
Initially, the lease liability is measured at the present
value of the lease payments still to be paid at the
commencement date. The lease payments are
discounted at the interest rate implicit in the lease. If
this rate cannot be readily determined, the Group uses
the incremental borrowing rate.
The Group recognises a right-of-use asset at the
commencement date of the lease. The right-of-use
asset is initially measured at cost. The cost of right
of use assets includes the amount of lease liabilities
recognised, adjusted for any lease payments made at
or before the commencement date, plus initial direct
costs incurred and an estimate of costs to dismantle,
remove or restore the leased asset, less any lease
incentives received.
Right-of-use assets are measured at cost comprising
the following:
•
•
•
•
The amount of the initial measurement of lease liability
Any lease payments made at or before the
commencement date less any lease incentives received
Any initial direct costs, and
Restoration costs.
Subsequent to initial measurement, right-of-use assets
are depreciated over the lease term or useful life of the
underlying asset whichever is the shortest.
The fair value of options granted under the option
terms and conditions set out by the Group is
recognised as a share-based payments expense
with a corresponding increase in equity. The
total amount to be expensed is determined by
reference to the fair value of the options granted,
which includes any market performance conditions
and the impact of any non-vesting conditions
but excludes the impact of any service and non-
market performance vesting conditions.
Non-market vesting conditions are included in
assumptions about the number of options that are
expected to vest. The total expense is recognised
over the vesting period, which is the period over
which all of the specified vesting conditions are to
be satisfied. At the end of each period, the entity
revises its estimates of the number of options that
are expected to vest based on the non-market
vesting conditions. It recognises the impact of the
revision to original estimates, if any, in profit or
loss, with a corresponding adjustment to equity.
When the options are exercised, the Group
transfers the appropriate number of shares
to the director, employee or consultant. The
proceeds received net of any directly attributable
transaction costs are credited directly to equity.
(e) Termination benefits
Termination benefits are payable when
employment is terminated before the normal
retirement date, or when an employee accepts
voluntary redundancy in exchange for these
benefits. The Group recognises termination benefits
when it is demonstrably committed to either
terminating the employment of current employees
according to a detailed formal plan without
possibility of withdrawal or to providing termination
benefits as a result of an offer made to encourage
voluntary redundancy. Benefits falling due more
than 12 months after the end of the reporting
period are discounted to present value.
(xiii) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the
amount of associated GST, except where the amount
of GST incurred is not recoverable from the Australian
Taxation Office. In these circumstances the GST is
recognised as part of the cost of acquisition of the asset
or as part of an item of the expense.
Receivables and payables in the statements of financial
position are stated inclusive of the amount of GST
receivable or payable. Cash flows are presented in the
statement of cash flows on a gross basis, except for the
GST component of investing and financing activities,
EMYRIA ANNUAL REPORT 2023
44
Notes to the consolidated financial statements
For the year ended 30 June 2023
Note 2: Revenue and expenses
(a) Revenue
Revenue from patients
Revenue from research projects and data deals
Other revenue
Interest and other income
Gain on modification of lease (note 6)
Research and Development grant received
Total Other revenue
(b) Other expenses
Travel and conference expenses
Administration costs
IT consultancy fees
Consultancy fees
Other
Group
2023
$
Group
2022
$
1,487,106
1,352,592
105,360
469,808
1,592,466
1,822,400
30,333
121,537
12,713
108,020
2,089,732
1,162,135
2,241,602
1,282,868
(193,862)
(106,116)
(367,617)
(580,495)
(284,303)
(193,181)
(283,605)
(318,205)
(83,847)
(191,226)
(1,213,234)
(1,389,223)
(c) Depreciation and amortisation expense
- Depreciation expense on right-of-use assets (note 6)
(214,462)
(196,108)
- Depreciation expense on plant and equipment (note 7)
(105,631)
(113,387)
- Amortisation expense on intangible assets (note 8)
(80,508)
(80,508)
(400,601)
(390,003)
EMYRIA ANNUAL REPORT 2023 45
Note 3: Income tax
(a) Income tax
Current tax
Current income tax expense
Deferred tax
Relating to the origination and reversal of previously unrecognised temporary
deferred tax differences
Net deferred tax assets not brought to account
(b) Reconciliation of tax expense to net loss before tax
Loss before income tax
Tax at the statutory rate of 26.0% (2020: 27.5%)
Tax effect of:
Non-deductible expenses
Group
2023
$
Group
2022
$
-
-
(636,171)
636,171
(1,693,758)
357,465
-
-
(5,131,117)
(7,327,691)
(1,282,779)
(1,831,923)
228,384
412,723
Effect of tax losses and timing differences not recognised as deferred tax assets
1,578,638
1,709,242
Foreign tax rate differential
Other non-assessable income
Income tax expense
(c) Amounts recognised in equity
(1,810)
492
(522,433)
(290,534)
-
-
Aggregate current and deferred tax arising in the reporting period and not recognised in statement of profit or
loss and other comprehensive income but directly debited or credited to equity
Current tax
Net deferred tax
Unrecognised deferred tax asset
Prior year tax losses not recognised
Current year tax losses
Capital raising costs and transaction costs in equity
Plant and equipment
Right-of-use asset lease liability
Other temporary differences
Off-set deferred tax liabilities
Net deferred tax assets unrecognised
-
80,000
80,000
-
-
-
4,460,493
3,766,013
153,887
165,822
89,602
70,304
76,916
153,400
194,084
158,176
35,769
87,068
(212,744)
(306,402)
4,804,280
4,088,108
EMYRIA ANNUAL REPORT 2023 46
Notes to the consolidated financial statements
For the year ended 30 June 2023
Deferred tax assets have not been brought to account at 30 June 2023 because the directors do not believe it is
appropriate to regard realisation of the future tax benefit as probable.
These benefits will only be obtained if:
(i) the Group derives future assessable income of a nature and of an amount sufficient to enable the benefit
from the deduction for the loss to be realised;
(ii)
the Group complies with the conditions for the deductibility imposed by law including the continuity of
ownership and/or business tests; and
(iii) no changes in tax legislation adversely affect the Group in realising the benefit from the deduction
for the loss.
Note 4: Cash and cash equivalents
Cash at bank
Cash and cash equivalents
Notes to the statement of cash flows:
Group
2023
$
Group
2022
$
2,733,526
3,879,469
2,733,526
3,879,469
For the purposes of the consolidated statement of cash flows, cash and cash equivalents include cash on hand and
at bank and term deposits that has original maturity of less than 3 months.
EMYRIA ANNUAL REPORT 2023 47
Note 5: Trade and other receivables
Current
Trade Debtors (1)
GST paid
Group
2023
$
30,835
54,647
85,482
The Group measures its trade and other receivables at amortised cost.
(1) The ageing of the Group’s Trade Debtors as at 30 June 2023 and 30 June 2022 are as follows:
30 June 2023
Debtor type
Patient fees
Other trade debtors
Gross carrying amount
Expected loss rate
Less allowing provision
Net carrying amount
30 June 2022
Debtor type
Patient fees
Data collaboration revenue
Gross carrying amount
Expected loss rate
Less allowing provision
Net carrying amount
<30 days
past due
$
30-90 days
past due
$
90+ days
past due
$
11,035
19,800
30,835
0%
-
30,835
-
0%
-
-
-
<30 days
past due
$
30-90 days
past due
$
90+ days
past due
$
13,752
14,671
28,423
0%
-
28,423
-
-
-
0%
-
-
-
-
-
0%
-
-
Group
2022
$
28,423
59,064
87,487
Total
$
11,035
19,800
30,835
0%
-
30,835
Total
$
13,752
14,671
28,423
0%
-
28,423
The Group applies the simplified approach in providing for expected credit losses (ECL) prescribed by AASB 9. The
expected credit losses on trade receivables are estimated using a provision matrix by reference to past defaults
experience and analysis of the debtors’ current financial position. There has been no change in the estimation
process used during the current reporting period.
EMYRIA ANNUAL REPORT 2023
48
Notes to the consolidated financial statements
For the year ended 30 June 2023
Note 6: Right-of-use assets
The Group’s lease portfolio includes office and clinic leases.
The average term of these leases, excluding options, is 1-4 years.
(a) Carrying value
Value of leases
Accumulated depreciation
Reconciliation
Net carrying amount at beginning of the year
Add: leases entered into during the financial year
Less: lease modified*
Depreciation expense during the financial year
Net carrying amount as at end of the year
Group
2023
$
Group
2022
$
966,483
1,296,048
(594,578)
(558,629)
371,905
737,419
737,419
880,589
-
160,958
(151,052)
(108,020)
(214,462)
(196,108)
371,905
737,419
* During the year, the Group, at the request of the landlord, terminated the lease of its Sydney. The Group
received $200,000 as settlement upon termination.
Gain on modification of lease
Reduction in carrying value of the ROU asset as at 30 June 2023
(151,052)
(147,440)
Less: Lease liability
Less: Make good provision
Less: Settlement on termination
Other income – gain on modification of lease
(b) AASB 16 related amounts recognised in Consolidated Statement of Profit
or Loss and Other Comprehensive Income
Interest expense
Depreciation
Other income – gain on modification of lease
(c) Total financial year end cash outflows for leases
46,589
26,000
200,000
255,460
-
-
121,537
108,020
(29,677)
(42,247)
(214,462)
(196,108)
(121,537)
(108,020)
Repayment of lease liabilities
(257,384)
(232,701)
(d) Options to extend or terminate
The Group uses hindsight in determining the lease term where the contract contains options to extend or
terminate the lease.
EMYRIA ANNUAL REPORT 2023
49
Note 7: Plant and equipment
Leasehold Improvements
At cost
Accumulated Depreciation
Computer, office furniture and equipment
At cost
Accumulated depreciation
Total
At cost
Accumulated depreciation
Reconciliation
Leasehold improvements
Carrying amount at beginning of the year
Additions
Leasehold improvements written off
Depreciation
Carrying amount at the end of the year
Computer, office furniture and equipment
Carrying amount at beginning of the year
Additions
Plant and equipment written off
Depreciation
Carrying amount at the end of the year
Total
Carrying amount at beginning of the year
Additions
Group
2023
$
Group
2022
$
412,173
672,382
(325,586)
(390,694)
86,587
281,689
132,354
(94,881)
37,473
134,506
(77,188)
57,318
544,527
806,888
(420,467)
(467,882)
124,060
339,007
281,689
365,564
-
11,134
(117,201)
-
(77,901)
86,587
57,318
16,751
(8,866)
(27,730)
37,473
(95,009)
281,689
33,982
41,714
-
(18,378)
57,318
339,007
399,546
16,751
52,848
Leasehold improvements and plant and equipment written off
(126,067)
-
Depreciation
Carrying amount at the end of the year
(105,631)
(113,387)
124,060
339,007
EMYRIA ANNUAL REPORT 2023 50
Notes to the consolidated financial statements
For the year ended 30 June 2023
Note 8: Intangible assets
30 June 2023
Intangible assets
At cost
Accumulated amortisation
Group
2023
$
Group
2022
$
6,901,301
3,044,555
(230,158)
(149,651)
6,671,143
2,894,905
30 June 2023
Software
Development
costs
Patents &
trademarks
Total
Balance at 1 July 2022
82,751
2,754,912
57,242
2,894,905
Additions
Additions from internal development
-
-
-
3,856,746
Amortisation
(37,973)
(42,535)
-
-
-
-
3,856,746
(80,508)
Balance at 30 June 2022
44,778
6,569,123
57,242
6,671,143
30 June 2022
Software
Development
costs
Patents &
trademarks
Balance at 1 July 2021
120,725
559,513
Additions
Additions from internal development
Amortisation
-
-
(37,974)
-
2,237,933
(42,534)
53,392
3,850
-
-
Total
733,630
3,850
2,237,933
(80,508)
Balance at 30 June 2021
82,751
2,754,912
57,242
2,894,905
There is no amortisation cost allocated to operating cost.
The Group started capitalising development costs relating to Openly and EMD-003 projects during the financial
year ended 30 June 2021.
The Board assesses each project at balance date:
i. Openly: The Company received TGA approval for its clinical management support web-based application
software in September 2020. Costs associated with further development of this device have been capitalised.
The costs are currently being amortised.
ii. EMD-RX5: Relates to the use of cannabidiol for the treatment of psychological distress. During the year,
Emyria commenced a phase III study for the use of cannabidiol for the treatment of psychological distress.
EMYRIA ANNUAL REPORT 2023
51
Note 9: Financial liabilties carried at amortised costs
Current
Trade payables
Accrued expenses and other payables
Total trade and other payables (1)
Lease liabilities (2)
Non-Current
Lease liabilities (2)
Group
2023
$
1,122,769
Group
2022
$
619,142
706,425
369,747
1,829,194
988,889
218,284
268,887
2,047,478
1,257,776
140,123
363,816
140,123
363,816
(1) Trade and other payables are measured at amortised cost. None of the outstanding balance are past due at
reporting date.
(2) The carrying value and reconciliation of the Group’s lease liabilities are as follows:
Carrying value
Current liabilities
Non-current liabilities
Carrying value as at 30 June
Reconciliation
Opening balance
Add: leases entered into during the financial year
Less: Principal repayments
Less: Lease modification
Add: Unwinding of interest expense on lease liability
Carrying value as at 30 June
Premises
2023
$
Premises
2022
$
218,284
268,887
140,123
363,816
358,407
632,703
632,703
949,699
-
128,918
(257,384)
(232,701)
(46,589)
(255,460)
29,677
42,247
358,407
632,703
(1) In December 2022, the Company signed a deed of termination at the request of the landlord for one of its
clinic leases. The lease was initially accounted for 5 years and in November 2022, it was agreed that the lease
will end by 1 March 2023. The carrying value of the lease liability of $46,589 has been written off.
(2) One of the clinic leases ended on 1 August 2023 and the Company did not use its option to extend the lease
and recognised the modification in the prior year for $255,460. This lease was initially accounted for 6 years
and as at 30 June 2022, it was agreed by the partied that the lease ended by 1 August 2023.
At initial recognition, the lease liabilities were measured at the present value of minimum lease payment using the
Group’s incremental borrowing rate of 6%. The incremental borrowing rate was based on the unsecured interest rate
that will apply if finance was sought for an amount and time period equivalent to the lease requirements of the Group.
EMYRIA ANNUAL REPORT 2023
52
Notes to the consolidated financial statements
For the year ended 30 June 2023
Note 10: Borrowings
Current
Borrowings
Note 11: Provisions
Current
Employee benefits (1)
FBT liability
Non-Current
Make good provision (2)
Group
2023
$
912,721
912,721
Group
2022
$
-
-
Group
2023
$
Group
2022
$
173,299
197,386
15,722
-
189,021
197,386
81,000
107,000
81,000
107,000
(1) The current provision for employee benefits includes all unconditional entitlements where employees have
completed the required period of service and also those where employees are entitled to pro-rata payments in
certain circumstances. The entire amount is presented as current as the Group expects all employees to take
the full amount of accrued leave or require payment within the next 12 months.
(2) Relates to the estimated cost of making good the premises in relation to the leases entered into by the Group
in prior years.
EMYRIA ANNUAL REPORT 2023 53
Note 12: contributed equity
(a) Issued and paid up capital
Fully paid ordinary shares
308,349,313
29,803,915
275,002,469
24,637,314
2023
Number
2023
$
2022
Number
2022
$
(b) Movements in fully paid shares on issue
Opening Balance
Movement for the year
275,002,469
24,637,314
254,091,857
19,310,804
Shares issued at $0.25 per share (1)
Shares issued to a Director (2)
Shares issued on exercise of options (3)
-
-
-
-
-
-
20,000,000
5,000,000
550,000
200,750
360,612
125,760
Shares issued at $0.18 per share (4)
15,833,333
2,850,000
Shares issued on exercise of options (5)
13,512
1,027
Shares issued at $0.18 per share (4)
833,333
150,000
Shares issued at $0.15 per share
16,666,666
2,500,000
Capital raising costs (6)
-
(334,426)
-
-
-
-
-
-
-
-
-
-
Closing Balance
308,349,313
29,803,915
275,002,469
24,637,314
Note 1: On 22 November, Emyria completed a $5 million strategic investment from Tattarang. Under the Placement,
a total of 20 million shares were issued to Tattarang at A$0.25 per share. As part of the Placement, Tattarang was
issued 10 million unlisted options (Options). The Options have an exercise price of A$0.40 per Option and an expiry
date of 2 years from the date of issue. The Options were issued for no additional consideration.
Note 2: During the year, shares were issued to Dr Karen Smith for nil consideration under the employee’s securities
incentive plan and are not subject to shareholder approval.
Note 3: This includes the issue of 213,609 shares on exercise of options by staff which were subject to a cashless
exercise facility. The adjustment for the cashless facility was $86,071 and the total cash received on exercise of total
options was $39,689.
Note 4: On 31 October, Emyria completed a placement to raise $3,000,000, of which the directors subscribed for
$150,000 which was subject to shareholder approval and was received in January 2023. Emyria issued 15,833,333
shares at $0.18 per share. In addition, Emyria issued 7,916,661 unlisted attaching options (Options) on the basis of 1
new Option for 2 new shares. The Options have an exercise price of $0.35 and an expiry date of 22 November 2025.
Note 5: This includes the issue of 13,512 shares on exercise of 34,000 unlisted options by staff which were subject to
a cashless exercise facility. The adjustment for the cashless facility was $1,027. No cash was received on exercise of
the options.
Note 6: This includes the fair value of 2,000,000 options issued to lead manager in relation to placement completed
in November 2023 which amounted to $14,426.
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the Group in
proportion to the number of and amounts paid on the shares held.
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll
each share shall have one vote.
Options
For information relating to the Company’s options, refer to Note 13.
EMYRIA ANNUAL REPORT 2023
54
Notes to the consolidated financial statements
For the year ended 30 June 2023
Note 13: Share based payments
The following share-based payments arrangements were in existence during the current reporting year:
Options
Options series
Number
Grant
date
Expiry
date
Exercise
Price
$
Fair value at
grant date
$
(1) Issued on 26 September 2019
600,000
26/09/2019
26/09/2023 0.450
(2) Issued on 13 November 2020
2,018,000
24/09/2020 13/11/2024
0.114
(3) Issued on 13 November 2020
8,500,000
13/11/2020
13/11/2024
0.114
(4) Issued on 22 December 2020
500,000
22/12/2020
22/12/2023
0.114
(5) Issued on 20 February 2021
1,500,000
20/02/2021
22/2/2024
0.268
(6) Issued on 18 March 2021
605,000
18/03/2021
18/3/2024
0.256
(7) Issued on 21 September 2021
150,000
21/09/2021
21/09/2024
0.330
(8) Issued on 7 October 2021
75,000
07/10/2021
07/10/2025
0.316
(9) Issued on 1 November 2021
300,000
01/11/2021
01/11/2025
0.360
(10) Issued on 31 December 2021
6,000,000
31/12/2021
31/12/2023
0.550
(11) Issued on 8 June 2022
200,000
8/6/2022
7/6/2026
0.384
(12) Issued on 17 Aug 2022
575,000
17/08/2022
16/08/2026
0.365
(13) Issued at 22 Nov 2022
2,000,000
22/11/2022
22/11/2025
0.350
(14) Issued at 24 Nov 2022
50,000
24/11/2022
16/08/2026
0.365
(15) Issued at 24 Nov 2022
3,000,000
24/11/2022
23/11/2026
0.296
(16) Issued at 24 Nov 2022
2,000,000
24/11/2022
23/11/2026
0.296
Total
28,073,000
0.0188
0.0374
0.0320
0.0317
0.0820
0.0620
0.1090
0.1218
0.1465
0.1559
0.1260
0.142
0.092
0.079
0.114
0.092
(1) The 600,000 options in series 1 where one third vested immediately on date of issue, one third vests after 12
months from date of issue and one third vests after 18 months from date of issue, were issued to a third party
under the terms outlined in a licence agreement with the Company.
(2) The 2,018,000 options in series 2 where one third vested immediately on date of issue, one third vests after one
year of service and one third vests after two years of service from date of issue, were issued to employees under
the option terms and conditions issued by the Company. During the year, 34,000 options were exercised and
34,000 options lapsed.
(3) The 8,500,000 options in series 3 where one third vested immediately on date of issue, one third vests after one
year of service and one third vests after two years of service from date of issue, were issued to Directors under
the option terms and conditions issued by the Company.
(4) The 500,000 options in series 4 where one third vested immediately on date of issue, one third vests after one
year of service and one third vests after two years of service from date of issue, were issued to a consultant under
the option terms and conditions issued by the Company.
EMYRIA ANNUAL REPORT 2023
55
Note 13: Share based payments (continued)
(5) The 1,500,000 options in series 5 is for advisory services where one third vested immediately on date of issue and
the remainder over two years from date of issue, were issued to the financial adviser under the option terms and
conditions issued by the Company.
(6) The 605,000 options in series 6 where one third vested immediately on date of issue, one third vests after one
year of service and one third vests after two years of service from date of issue, were issued to an employee under
the option terms and conditions issued by the Company.
(7) The 150,000 options in series 7 where one third vested immediately on date of issue, one third vests after one
year of service and one third vests after two years of service from date of issue, were issued to an employee under
the option terms and conditions issued by the Company.
(8) The 75,000 options in series 8 where one third vested immediately on date of issue, one third vests after one year
of service and one third vests after two years of service from date of issue, were issued to an employee under the
option terms and conditions issued by the Company.
(9) The 300,000 options in series 9 where one third vested immediately on date of issue, one third vests after one
year of service and one third vests after two years of service from date of issue, were issued to an employee under
the option terms and conditions issued by the Company.
(10) The 6,000,000 options in series 10 vested immediately were issued to consultants as consideration for corporate
advisory services.
(11) The 200,000 options in series 11 where one third vested immediately on date of issue, one third vests after one
year of service and one third vests after two years of service from date of issue, were issued to employees under
the option terms and conditions issued by the Company.
(12) The 575,000 options in series 12 where one third vests immediately on date of issue, one third vests after one
year of service and one third vests after two years of service from date of issue, were issued to employees under
the option terms and conditions issued by the Company.
(13) The 2,000,000 options in series 13 which vested immediately on date of issue were issued as part settlement of
corporate advisory fees under a mandate dated 28 October 2022.
(14) The 50,000 options in series 14 where one third vests immediately on date of issue, one third vests after one year
of service and one third vests after two years of service from date of issue, were issued to employees under the
option terms and conditions issued by the Company.
(15) The 3,000,000 options in series 15 where one third vests immediately on date of issue, one third vests after one
year of service and one third vests after two years of service from date of issue, were issued to the managing
director under the option terms and conditions issued by the Company and was subject to shareholder approval
which was received in January 2023.
(16) The 2,000,000 options in series 16 where one third vests immediately on date of issue, one third vests after one
year of service and one third vests after two years of service from date of issue, were issued to employees under
the option terms and conditions issued by the Company.
The weighted average contractual life for options outstanding at the end of the year was 2.34 years (2022: 1.33 years).
The share based payments expense was $422,865 for the year ended 30 June 2023 (30 June 2022: $1,230,892).
The amount of share based payments recognised to capital raising costs was $14,426 (30 June 2022: Nil).
EMYRIA ANNUAL REPORT 2023 56
Notes to the consolidated financial statements
For the year ended 30 June 2023
Note 13: Share based payments (continued)
Options were priced using a Black-Scholes option pricing model using the inputs below:
Options series
Series 1
Series 2
Series 3
Series 4
Series 5
Series 6
Grant date share price
$0.10
Exercise price
Expected volatility
$0.45
70%
0.083
$0.114
70%
0.076
$0.114
70%
0.084
$0.114
70%
0.210
0.175
$0.268
$0.256
70%
70%
Option life
4 years
4 years
4 years
3 years
3 years
3 years
Dividend yield
0%
0.00%
0.00%
0.00%
0.00%
0.00%
Interest rate
0.97%
0.3%
0.3%
0.2%
0.1%
0.1%
Options series
Series 7
Series 8
Series 9
Series 10
Series 11
Series 12
Grant date share price
0.215
0.210
0.285
0.370
0.25
0.255
Exercise price
$0.330
$0.316
$0.360
$0.550
$0.384
$0.365
Expected volatility
93%
94%
93%
99%
93%
85%
Option life
3 years
4 years
4 years
4 years
4 years
4 years
Dividend yield
0.00%
0.00%
0.00%
0.00%
0%
0%
Interest rate
0.17%
0.35%
0.98%
0.54%
0.98%
3.10%
Options series
Series 13
Series 14
Series 15
Series 16
Grant date share price
0.185
0.185
0.185
0.185
Exercise price
$0.350
$0.365
$0.296
$0.296
Expected volatility
80%
79%
86%
79%
Option life
3 years
4 years
4 years
4 years
Dividend yield
0.00%
0%
0%
0.00%
Interest rate
3.10%
3.10%
3.10%
3.10%
EMYRIA ANNUAL REPORT 2023
57
Note 13: Share based payments (continued)
The following reconciles the outstanding share options granted in the year ended 30 June 2023:
Balance at the beginning of the year
Granted during the year1
Exercised during the year2
2023
Number of
options
77,709,262
32,624,994
(34,000)
Lapsed/expired/cancelled during the year
(10,661,451)
2023
Weighted avg
exercise price
2022
Number of
options
2022
Weighted avg
exercise price
0.34
0.32
0.11
0.38
63,116,598
16,725,000
(532,336)
0.30
0.45
0.20
(1,600,000)
0.18
Balance at the end of the year
99,638,805
0.34
77,709,262
0.30
Un-exercisable at the end of the year
3,991,667
Exercisable at end of the year
59,013,327
0.31
0.34
4,813,667
72,895,595
0.16
0.36
1
2
Options granted during the year includes 26,999,994 free-attaching options as at 30 June 2023 (30 June
2022: 10,000,000 -free attaching options).
During the year, 34,000 options were exercised and 34,000 options lapsed.
No amounts are unpaid on any of the shares. No person entitled to exercise an option had or has any rights by
virtue of the option to participate in any share issue of any other body corporate.
Note 14: Reserves
Share based payments reserve
Group
2023
$
Group
2022
$
2,407,841
1,971,567
2,407,841
1,971,567
The share based payments reserve relates to share options granted by the Company to its employees, consultants
and Directors under the option terms and conditions issued by the Company. Further information about share
based payments are set out in note 12.
Movement of share based payments reserve
Opening balance
Share based payments: expense (note 12)
Cashless exercise adjustment
Share based payments: capital raising costs
Group
2023
$
1,971,567
422,865
(1,027)
14,426
Group
2022
$
826,746
1,230,892
(86,071)
-
2,407,841
1,971,567
EMYRIA ANNUAL REPORT 2023
58
Notes to the consolidated financial statements
For the year ended 30 June 2023
Note 15: Reconciliation of the loss from ordinary activities after income
tax to the net cash flows used in operating activities
Loss for the year
Share based payments expense
Share-based payments (Director’s remuneration)
Depreciation and amortisation
Fixed assets write-off
Other income – gain on lease modification
Changes in assets and liabilities:
Decrease in trade and other receivables prepayments
Decrease in prepayments
Increase in trade and other payables
Increase in provisions
Group
2023
$
Group
2022
$
(5,131,117)
(7,327,691)
422,865
1,230,892
-
400,601
126,067
(121,537)
2,005
114,986
423,205
(8,635)
200,750
390,003
-
(108,020)
79,719
-
55,259
51,266
Net cash flows (used in) operating activities
(3,771,560)
(5,427,822)
Non-cash financing and investing activities
The Group did not engage in any non-cash investing activities during the year (2022: nil).
The Company issued 2,000,000 unlisted options to its lead manager in lieu of its services for the capital raising.
The fair value of the options of $14,426 was recognised as capital raising costs.
Changes in liabilities arising from financing activities
Refer to Note 9 (3) for details.
Note 16: Loss per share
(a) Reconciliation of loss used in calculating Loss Per Share
Loss attributable to the ordinary equity holders used in
calculating basic loss per share
(b) Weighted average number of shares used as the Denominator
Ordinary shares used as the denominator in
calculating basic loss per share
(c) Loss per share
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
Group
2023
$
Group
2022
$
(5,131,117)
(7,327,691)
2022
Number
$
2021
Number
$
287,258,990
266,636,696
Group
2022
cents
(2.75)
(2.75)
Group
2021
cents
(2.24)
(2.24)
There is no dilution of shares due to options as the potential ordinary shares are not dilutive,
therefore not included in the calculation of diluted loss per share.
EMYRIA ANNUAL REPORT 2023
59
Note 17: Related party transaction
Key Management Personnel Compensation
The aggregated compensation paid to Directors and Key Management Personnel of the Group is as follows:
Short term employee benefits
Bonus payments
Post-employment benefits
Non-monetary benefits (annual leave)
Share based payment
Group
2023
$
Group
2022
$
1,279,226
1,273,970
-
49,088
(4,197)
160,000
53,204
(7,111)
235,344
200,750
1,559,461
1,680,813
There have been no other transactions For the year ended 30 June 2023 to related parties (30 June 2022: Nil).
Note 18: Parent entity disclosures
Financial position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
Financial performance
Loss for the year
Other comprehensive income
Total comprehensive income
Group
2023
$
Group
2022
$
2,691,165
7,015,815
3,938,861
3,300,489
9,706,980
7,239,350
2,669,108
805,885
304,584
570,405
2,973,692
1,376,290
6,733,288
5,863,060
29,803,915
24,637,313
2,407,841
1,971,567
(25,478,468)
(20,745,820)
6,733,288
5,863,060
(4,732,648)
(7,406,579)
-
-
(4,732,648)
(7,406,579)
EMYRIA ANNUAL REPORT 2023
60
Notes to the consolidated financial statements
For the year ended 30 June 2023
Note 19: Commitments and contingencies
At reporting date, the Company had agreed to provide an additional $112,500 to the University of Western
Australia to expand the MDMA analogue program.
There are no other commitments or contingent liabilities outstanding for the Group or the Company other than
outline above.
Note 20: Segment information
AASB 8 ‘Operating Segments’ requires a “management approach” under which segment information is presented
on the same basis as that useful for internal reporting purposes by the chief operating decision maker (“CODM”).
For management purposes, the Group is organised into one main operating segment, being the research and
development where the Group is a health care technology and clinical research company focused on generating
high quality real-world evidence (RWE) data. The chief operating decision makers of the Group are the Executive
Directors and Officers.
All the Group’s activities are interconnected and all significant operating decisions are based on analysis of
the Group as one segment. The financial results of the segment are the equivalent of the financial statements
as a whole. At 30 June 2023, all revenues and material assets are considered to be derived and held in one
geographical area being Australia.
Note 21: Financial risk management
The Group’s financial instruments consist mainly of deposits with banks and accounts receivable and payable.
The Group’s activities expose it to a variety of financial risks: market risk (ie. interest rate risk), credit risk and
liquidity risk. The Group’s overall risk management program focuses on the unpredictability of financial markets
and seeks to minimise potential adverse effects on the financial performance of the Group. The Group uses
different methods to measure different types of risk to which it is exposed.
The Group’s Risk Committee (“the Committee”) performs the duties of risk management in identifying and
evaluating sources of financial and other risks. The Committee provides written principles for overall risk
management which balance the potential adverse effects of financial risks on Group’s financial performance and
position with the “upside” potential made possible by exposure to these risks and by considering the costs and
expected benefits of the various methods available to manage them.
Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of financial instruments will fluctuate because
of changes in market interest rates. The Group’s exposure to the risk of changes in market interest rates relates
primarily to the Group’s Australian Dollar current and non-current debt obligations with floating interest rates.
The Group is also exposed to interest rate risk on its cash and short term deposits.
EMYRIA ANNUAL REPORT 2023 61
Note 21: Financial risk management (continued)
2023
Fixed
interest
rate
maturing
in 1 year or
less
$
Fixed
interest
rate
maturing
greater
than 1 year
$
Floating
Interest
rate
$
Non-
interest
bearing
$
299,311
85,482
-
-
144,582
-
Weighted
average
effective
interest
rate
%
Total
$
2,733,526
85,482
144,582
1.6
-
1.0
144,582
384,793
2,963,590
-
1,829,194
1,829,194
-
218,284
140,123
-
358,407
6.0
218,284
140,123
1,829,194
2,187,601
Financial assets
Cash and cash equivalents
2,434,215
Trade and other receivables
Restricted cash
Financial liabilities
Trade and other payables
Lease liabilities
-
-
2,434,215
-
-
-
2022
Fixed
interest
rate
maturing
in 1 year or
less
$
Fixed
interest
rate
maturing
greater
than 1 year
$
Floating
Interest
rate
$
Non-
interest
bearing
$
99,817
87,487
Weighted
average
effective
interest
rate
%
Total
$
3,879,469
1.00
87,487
-
161,302
1.00
-
-
161,302
161,302
187,304
4,128,259
-
988,889
988,889
-
268,887
363,816
-
632,703
6.00
268,887
363,816
988,889
1,621,592
Financial assets
Cash and cash equivalents
3,776,846
Trade and other receivables
Restricted cash
Financial liabilities
Trade and other payables
Lease liabilities
-
-
3,776,846
-
-
-
-
-
-
-
-
-
-
-
-
EMYRIA ANNUAL REPORT 2023
62
Notes to the consolidated financial statements
For the year ended 30 June 2023
Note 21: Financial risk management (continued)
Sensitivity Analysis – Interest Rate Risk
The Group has performed a sensitivity analysis relating to its exposure to interest rate risk at the reporting date.
This sensitivity analysis demonstrates the effect on the current period results and equity which could result from a
change in interest rates.
Change in loss
Increase by 1%
Decrease by 1%
Credit risk
30 June
2023
$
27,208
(27,208)
30 June
2022
$
37,768
(37,768)
The Group has no significant concentrations of credit risks.
Credit risk arises from cash and cash equivalents, deposits with banks and financial institutions, as well as credit
exposures to customers. The maximum exposure to credit risk at the reporting date is the carrying amount of the
financial assets as summarised above of this note.
As at 30 June 2023, all cash and cash equivalents were held with National Australia Bank with an A (Standard
and Poor’s) credit rating. In relation to trade receivables, management assesses the credit quality of the customer,
taking into account its financial position, past experience and other factors.
The credit risk on other receivables is limited as it is comprised of GST recoverable from the Australian Taxation
Office. The credit risk on liquid funds is limited because the counter party is a bank with high credit rating.
Liquidity risk
Prudent liquidity risk management involves the maintenance of sufficient cash, committed credit facilities and
access to capital markets. It is the policy of the Board to ensure that the Group is able to meet its financial
obligations and maintain the flexibility to pursue attractive investment opportunities through keeping committed
credit lines available where possible, ensuring the Group has sufficient working capital. The Group manages
liquidity risk by continuously monitoring forecast and actual cash flows.
Contractual maturities of financial liabilities
As at the reporting date the Group had total financial liabilities of $2,187,601 (2022: $1,621,593) which
comprised of trade and other payables and borrowings with a maturity of less than 6 months and lease
liabilities maturing within the next four years.
Capital risk management
The Group manages its capital to ensure that it will be able to continue as a going concern while maximising the
potential return to shareholders. The capital structure of the Company consists of equity attributable to equity
holders, comprising issued capital and reserves as disclosed in notes 11 and 13.
Fair value of financial assets and liabilities
The fair value of financial assets and liabilities at approximate carrying values.
EMYRIA ANNUAL REPORT 2023
63
Note 22: Fair value measurement
Fair value hierarchy
The Group’s assets and liabilities measured or disclosed at fair value, using a three level hierarchy, based on the
lowest level of input that is significant to the entire fair value measurement, being:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access
at the measurement date.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly or indirectly.
Level 3: Unobservable inputs for the asset or liability.
The Group does not have assets and liabilities measured or disclosed at fair value as at 30 June 2023 and 2022.
Estimates of fair value take into account factors and market conditions evident at balance date. Uncertainty and
changes in global market conditions in the future may impact fair values in the future.
Transfers between level 1, 2 and 3
There were no movements between different fair value measurement levels during the financial year (2022: none)
Note 23: Subsidaries
Name of entity
Emyria Clinical Network Pty Ltd
Emyria Clinical Research Pty Ltd1
Emyria Data Management Pty Ltd1
Emyria IP Holdings Pty Ltd1
Openly Care Inc.
Emyria UK Ltd 1, 3
Country of
incorporation
Australia
Australia
Australia
Australia
Class of
Shares
Ordinary
Ordinary
Ordinary
Ordinary
United States
Ordinary
United Kingdom Ordinary
2023
100%
100%
100%
100%
100%
100%
2022
100%
100%
100%
100%
100%
100%
(1)
(2)
(3)
These entities have been dormant during the financial year.
Openly Care was struck off on 30 May 2023
Emyria UK Ltd was struck off 28 August 2023
EMYRIA ANNUAL REPORT 2023
64
Notes to the consolidated financial statements
For the year ended 30 June 2023
Note 24: Events after reporting date
Placement comprises the issue of approximately 26,666,667 fully paid ordinary shares at $0.075 each (“Placement
Shares”) representing a 6.25% discount to the last traded price as at 30 August 2023. In addition, the Placement
includes 1 free attaching unquoted option for every 2 shares applied for and issued under the Placement
(“Placement Options”). The Placement Options will be exercisable at $0.12 each and expire 3 years from the date
of issue.
On 5 September 2023, the Company announced that 19,217,144 options expired on 28 April 2023.
On 6 September 2023, the Company announced a non-renounceable entitlement issue of 1 new share for every 7.5
existing shares held at an issue price of $0.075 per new share to raise approximately $3.1m (before costs) together
with 1 free attaching option for every 2 new shares applied for and issued.
On 13 September 2023, the Company announced that it completed its acquisition of Mind Body Consulting Pty Ltd
trading as the Pax Centre. The strategic acquisition was valued at $1.7m and executed through a combination of
shares and cash. 10,236,220 shares were issued with a value of $1.3m. The balance is to be paid in cash.
On 13 September 2023, the Company also announced the issue of 25,000,000 shares, of which 20,000,000 were
issued under tranche one of the placement announced on 4 September and 5,000,000 shares at a deemed issue
price of $0.075 each to StocksDigital in part consideration for the provision of investor relations services.
There are no other matters or circumstances that have arisen since the end of the financial year which have
significantly affected or may significantly affect the operations of the Group, the results of those operations, or the
state of affairs of the Group in future financial periods.
Note 25: Remuneration of auditors
Auditor fees incurred during the financial year are as follows:
Audit services – Stantons
Group
2023
$
75,000
75,000
Group
2022
$
64,968
64,968
EMYRIA ANNUAL REPORT 2023
65
Directors’ Declaration
In the Directors’ opinion:
a)
the consolidated financial statements and notes set out on pages 27 to 62, and are 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
performance, as represented by the results of its operations, changes in equity and its cash
flows, for the year ended on that date; and
ii.
complying with Australian Accounting Standards, Corporations Regulations 2001 and other
mandatory professional reporting requirements;
b)
there are reasonable grounds to believe that the Group will be able to pay its debts as and when they
become due and payable.
c) the financial statements and notes thereto are in accordance with International Financial Reporting
Standards issued by the International Accounting Standards Board.
This declaration is made after receiving the declarations required to be made to the Directors in accordance
with section 295A of the Corporations Act 2001 For the year ended 30 June 2023.
This declaration is made in accordance with a resolution of the Directors.
Dr Michael Winlo
Managing Director
Dated 27 September 2023
EMYRIA ANNUAL REPORT 2023
66
Auditors’ Declaration
EMYRIA ANNUAL REPORT 2023 Liability limited by a scheme approved under Professional Standards Legislation PO Box 1908 West Perth WA 6872 Australia Level 2, 40 Kings Park Road West Perth WA 6005 Australia Tel: +61 8 9481 3188 Fax: +61 8 9321 1204 ABN: 84 144 581 519 www.stantons.com.au Stantons Is a member of the Russell Bedford International network of firms 27 September 2023 Board of Directors Emyria Limited D2, 661 Newcastle St Leederville, WA 6007 Dear Directors RE: EMYRIA LIMITED In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following declaration of independence to the directors of Emyria Limited. As Audit Director for the audit of the financial statements of Emyria 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 67
Auditor’s Report
EMYRIA ANNUAL REPORT 2023 Liability limited by a scheme approved under Professional Standards Legislation PO Box 1908 West Perth WA 6872 Australia Level 2, 40 Kings Park Road West Perth WA 6005 Australia Tel: +61 8 9481 3188 Fax: +61 8 9321 1204 ABN: 84 144 581 519 www.stantons.com.au Stantons Is a member of the Russell Bedford International network of firms INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF EMYRIA LIMITED Report on the Audit of the Financial Report Opinion We have audited the financial report of Emyria Limited (“the Company”), and its subsidiaries (collectively, the “Group”), which comprises the consolidated statement of financial position as at 30 June 2023, the consolidated statement of 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 report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Material Uncertainty Related to Going Concern We draw attention to Note 1(iv) to the consolidated financial statements, which indicate that the Group incurred a net working capital deficit of $296,952. As at 30 June 2023, the Group had cash and cash equivalents of $2,733,526. As stated in Note 1(iv), these events or conditions, along with other matters, as set forth in Note 1(iv), 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 in respect of this matter. 68
Auditor’s Report
EMYRIA ANNUAL REPORT 2023 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 Capitalised development costs During the financial year, the Group capitalised development costs which amounted to $6,671,143 (refer to Note 8). Capitalisation of development costs was a key audit matter due to: i. judgment involved in applying the requirements of AASB 138 Intangible Assets which includes judgment about the future performance and viability of the project; and ii. the size and nature of the amount the judgment involved in identifying costs that meet the criteria for capitalisation under the requirements of the accounting standards. Inter alia, our audit procedures included the following: i. Evaluating the nature of the development expenses incurred that are capitalised as intangible assets; ii. Assessing the reasonableness of the capitalisation based on our knowledge of the business and industry; iii. Evaluating the appropriateness of expenses capitalised, on a sample basis, by agreeing material costs incurred to external invoices and other relevant supporting documents; iv. Assessing whether any impairment of the capitalised development costs was necessary as at 30 June 2023; and v. Assessing the adequacy of the disclosures in accordance with the applicable accounting standards. Measurement of share-based payments During the financial year, the Group recognised a share-based payment expense of $422,865 in the consolidated statement of profit or loss (refer to Note 13). The Group awarded share-based payments in the form of share options. The awards vest subject to the achievement of certain vesting conditions. Measurement of share-based payments was a key audit matter due to the complex and judgmental estimates used in determining the fair value of the share-based payments. Inter alia, our procedures included the following: i. Reviewing the relevant agreements to obtain an understanding of the contractual nature and terms and conditions of the share-based payment arrangements; ii. Assessing the assumptions used in the Group’s valuation of share options being the share price of the underlying equity, interest rate, volatility, dividend yield, time to maturity (expected life), and grant date. iii. Assessing the allocation of the share-based payment expense over the relevant vesting period; and iv. Assessing the appropriateness of the disclosures in Note 13 to the consolidated financial statements. 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. 69
EMYRIA ANNUAL REPORT 2023 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. 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. 70
Auditor’s Report
EMYRIA ANNUAL REPORT 2023 We obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the financial report. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in Internal control that we identify during our audit. The Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements. We also provide the Directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. 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 18 to 25 of the directors’ report for the year ended 30 June 2023. In our opinion, the Remuneration Report of Emyria 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 27 September 2023 71
ASX additional information
Twenty largest shareholders as at 12 September 2023
Position Holder Name
Holding
(units)
% total
units
Dr Stewart James Washer & Dr Patrizia Derna Washer
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