Annual Report
2022
Strategy Statement
We will be the trusted global partner for
driving improved patient outcomes using
our innovative 3base® technology to provide
configurable clinically relevant molecular
diagnostic solutions for infectious diseases.
Contents
Chairman’s Letter .......................... 4
Annual Review – CEO Report ........ 6
Full Year Results Highlights ........ 12
Infrastructure Update ................. 14
Marketing & Events ..................... 16
Upcoming Milestones ................. 19
Our People .................................... 20
Meet the Directors ....................... 22
Financial Report 2022 ................. 24
Analysis of Holdings .................... 77
2
Genetic Signatures Limited – Annual Report 2022
3
Chairman’s Letter
Dear fellow shareholder, it is my pleasure
to present to you the Genetic Signatures’
annual report for the financial year ending
30 June 2022
Since Genetic Signatures was founded 21 years ago,
the Company has continued to deliver innovative
molecular diagnostic solutions to improve patient
health. Our patented 3base® technology provides
unique and compelling advantages for multiplex
PCR testing of infectious diseases, and has well
positioned the Company to leverage the substantial
growth in molecular testing in recent years.
Indeed, I am proud to report that Genetic Signatures
has recorded another year of significant sales of
$35.4 million in the 2022 financial year, a 25%
increase on the previous year. This has been
achieved through the Company’s ongoing focus on
product development and diversification, and agility
and commitment to meet the diagnostic needs of
our customers.
Over the past four years Genetic Signatures
has delivered robust sales growth with average
compound annual growth of 89%, and a recorded
profit of $3.1 million in the 2022 financial year.
This has put the Company in a strong cash
position, enabling continued investment in product
development, registration and the global marketing
of our unique 3base® technology.
We are proud to share that Genetic Signatures’
EasyScreen™ SARS-CoV-2 Detection Kit continues
to detect all variants of concern with the same
limit of detection as the original reference Wuhan
SARS-CoV-2 virus. This has provided our customers
4
Genetic Signatures Limited – Annual Report 2022
with confidence in detecting the rapidly evolving
SARS-CoV-2 using our 3base® technology. Through
careful management of manufacturing capacity and
inventory, Genetic Signatures successfully leveraged
the strong demand for its proven EasyScreenTM
SAR-CoV-2 Detection Kits during the global Omicron
outbreaks, ensuring reliable supply for our existing
global customer base. Our team demonstrated the
ability to operate in high volume settings, whilst
maintaining the high level of customer support we
strive for.
Molecular based testing has become fundamental
to the laboratory workflow due to ease of use,
accuracy and faster time to result, compared to
traditional techniques. We have seen a significant
growth in demand for syndromic solutions, where
multiplex PCR testing is used to detect a broad range
of pathogens causing similar signs and symptoms
in patients, in a single test. Genetic Signatures
patented 3base® technology, uniquely configurable
syndromic product portfolio, and flexible end-to-end
workflow well positions our Company at the forefront
of this demand.
This year, we strengthened the
awareness and position of Genetic
Signatures as a leading competitor
in the global molecular diagnostics
market, with high-impact marketing
and growth strategies executed in
the lucrative United States (US) and
European markets.
To support future growth in these regions,
investment also extended to global infrastructure,
staff recruitment, and ongoing product registration
in key disease areas impacting health.
In Europe, Genetic Signatures is well-positioned
to further lift sales across the existing portfolio of
CE-IVD registered detection kits and automated
systems. These solutions support molecular
syndromic testing of clinically significant
gastrointestinal, respiratory and sexually
transmitted diseases, and screening of antimicrobial
resistance gene targets. Indeed, the expansion of
staffing, partnerships and profile in this region
contributed 11% of sales over the last 12 months.
Genetic Signatures’ partnership with KH Labor,
GmbH, has led to a range of 3base® EasyScreen™
assays being trialled in a number of high throughput
laboratory diagnostic services located in German
hospitals, government entities and testing centres.
In the US, Genetic Signatures remains focused
on the future launch of the EasyScreen™ Enteric
Protozoan Detection Kit. The Company aims to
ultimately secure 40% of the estimated addressable
market of 5.5 million tests per annum. Genetic
Signatures’ EasyScreen™ Enteric Protozoan
Detection Kit enables a more rapid and accurate
detection of a greater range of gastrointestinal
parasites than traditional detection methods,
in a single test. Earlier detection supports more
appropriate and timely patient management, but
also supports substantial cost savings across the
health system. The clinical trial required to support
the 510(k) FDA application for Genetic Signatures’
EasyScreen™ Enteric Protozoan Detection Kit
has completed recruitment, with the 510(k) FDA
submission expected by the end of the 2022
calendar year.
Genetic Signatures’ other test kits are being actively
trialed by researchers with at least five new product
groupings in various stages of development. We have
also progressed development of our next generation,
fully automated sample-to-answer instrument for
high-volume testing. This instrument is expected
to further drive demand for EasyScreen™ kits
in targeted markets, and further embed 3base®
technology in the workflow of our existing customer
base.
Maintaining sustained growth and ongoing product
development and registration pipeline that Genetic
Signatures has delivered over recent years has
required focused governance. The Board of Directors
and Management have risen to this challenge
- particularly in a turbulent global market that
demanded the agility to pivot to meet the immediate
COVID-19 testing needs, whilst maintaining the
Company’s long-term strategic focus. To reflect the
significant achievements that the Company has
made over the past year, I would like to express my
thanks to my fellow directors for their outstanding
commitment and contribution. In May 2022, we
welcomed Caroline Waldron as a Non-Executive
Director to Genetic Signatures. Ms Waldron’s diverse
commercial background in law, human resources,
digital transformation and marking complements
the Board’s strong business and commercial
experience, and molecular diagnostics expertise. .
The Company’s robust growth is also
a testament to our talented global
team. Led by our CEO, Dr John Melki,
our staff have made significant efforts
and sacrifices during the COVID-19
pandemic and on behalf of the board
I wish to sincerely thank every member
of staff.
Genetic Signatures’ corporate strategy is
underpinned by its people with deeply engrained
core values driving the Company’s actions. I am
proud of the lived values that resonate in our
daily working environment, and the celebration
of individual differences and diversity that fuels
Genetic Signatures’ innovation and success.
Equally, I thank Genetic Signatures principal
advisors, our growing team of global partners and
our longstanding and new shareholders. You enable
us to realise our vision: To reduce infectious disease
burden and improve patient health by using novel
3base® technology to enable configurable solutions,
that simplify molecular diagnostics.
With a clearly defined strategy and an exceptionally
talented and engaged team to support its execution,
we are confident in continuing this growth trajectory
to meet our future growth targets, and to deliver
long-term shareholder value.
Dr Nick Samaras
Chairman
5
Sales diversification
providing base for
long term growth
Genetic Signatures Ltd. generated another year
of record sales in FY2022 with revenues of $35.4
million, representing a 25% increase over FY2021.
Genetic Signatures has consistently delivered
year on year sales growth since it listed in 2015,
and in the last four years, sales have grown with
an average compound annual growth rate of
89%. The group has maintained its gross margin
on materials at 70% and is pleased to report
a profit of $3.1 million, up from $1.8 million in
FY2021, despite increased costs for investment in
future growth. The results reflect the Company’s
strategic priority to establish its unique syndromic
product portfolio in key international markets,
whilst continuing to support and expand its
established customer base in Australia.
Our sales growth has provided strong cash flows
and put the Company on solid commercial footing.
Cash on hand at 30 June was $36.9 million. It has
also significantly raised global brand awareness
and appreciation of Genetic Signatures’ patented
3base® technology. This has laid the groundwork
for the Company’s long term growth strategy
which includes further penetration of the US
and European markets, and additional product
diversification and uptake from the existing
customer base.
Genetic Signatures has benefited over the last
two years from strong demand for its EasyScreen™
SARS-CoV-2 Detection Kit. This strong demand
reflects the compelling advantages of Genetic
Signatures’ 3base® technology, which converts the
naturally occurring 4-base DNA or RNA sequences
to one of 3 bases via a chemical conversion. The
reasons why this is beneficial are many. This
simplification improves PCR efficiency when
more than one pathogen is being targeted in a
single sample and reduces the genetic complexity
of detecting pathogens, particularly beneficial
for detecting pathogen subtypes and providing
increased resistance to mutations or variants, as
observed with SARS-CoV-2.
The Company has strategically moved to reduce
sales reliance on the SAR-CoV-2 Detection Kit,
particularly as global health authorities scaled
back COVID-19 testing programs. However,
Genetic Signatures remains well positioned to
address increased testing requirements of new
strains of COVID-19 and potential outbreaks that
may arise. This flexibility includes the ability to
2022 Annual
Review
CEO Report
Record sales of $35.4 million in
FY2022, up 25%
Increasing contribution from sale
of non-SARS-CoV-2 detection kits
providing diversified sales foundation to
support long-term revenue growth
Completed recruitment for clinical
trial of EasyScreen™ Enteric Protozoan
Detection Kit to support filing of 510(k)
application with the United States (US)
Food and Drug Administration (FDA) by
end of CY2022
New sites in Europe purchasing and
trialling EasyScreen™ Detection Kits
Ongoing development of new pathogen-
specific tests and syndromic testing
kits expanding breadth and depth of
EasyScreen™ product portfolio
Formally initiated program to develop
next generation, fully automated
instrument for high volume
3base® testing
6
Genetic Signatures Limited – Annual Report 2022
rapidly ramp up production of its EasyScreen™
tests to reliably support their existing customer
base, which is highly valued.
In addition, in January 2022 the TGA registered
a protocol for using saliva samples for its
EasyScreen™ SARS-CoV-2 testing kit following a
study showing the Omicron variant had a higher
viral load in saliva than nasal samples.
While Genetic Signatures will continue to drive
and support sales of its SARS-CoV-2 Detection
Kit, the strategic focus of the Company is to
strengthen the foundations to deliver long-term,
sustainable sales growth through:
•
Increased awareness, presence and
sales in European and US markets
• Continued uptake and diversification of
the syndromic testing product portfolio
of EasyScreen™ detection kits
• Embedding 3base® technology in high-
volume sites by developing a fully
automated, easy to use sample-to-
answer system
This strategic focus saw sales of non-SARS-
CoV-2 related products exceeding COVID-19
related revenue in the most recent quarter
(4Q FY2022). With a significant focus on
driving uptake of Genetic Signatures’ uniquely
configurable syndromic testing solutions, the
company expects a significant rise of non-SARS-
CoV-2 sales in the future.
Sales of non-SARS-CoV-2 related
products exceeded COVID-19 related
revenue in the most recent quarter
7
7
European investment
supports regional sales
growth
Clinical trial recruitment
completed for US Enteric
Protozoan Kit
Genetic Signatures consolidated and
expanded its presence in Europe which
accounted for 11% of sales in FY2022.
During the year the Company invested in
laboratory and warehousing facilities in the
United Kingdom and the Netherlands, joining the
BioHub Birmingham as a launchpad for further
expansion into Europe, as well as the Middle East
and Africa. The European team also grew by 50%
to support the anticipated medium-term growth.
To build brand awareness of Genetic Signatures’
syndromic solutions in the European market,
Genetic Signatures had a strong presence at
European events during FY2022 including; the
Institute of Biomedical Science Congress
in Birmingham; the European Congress of
Clinical Microbiology and Infectious Diseases
in Lisbon, Portugal; and smaller local events
across the region.
The European sales team leveraged the success
of the EasyScreen™ SARS CoV 2 Detection Kit
to introduce existing customers to the uniquely
configurable EasyScreen™ products for syndromic
testing. Genetic Signatures also established a
partnership with German company KH Labor
GmbH, who provides laboratory diagnostic
services to a range of hospitals, government
bodies and testing centers. Recent positive
changes in the reimbursement status for
syndromic testing that covers gastrointestinal,
respiratory and sexually transmitted infections
will help with access to the German market as the
value of molecular methodologies are recognised.
The first diagnostic kit Genetic Signatures aims
to launch in the US is the EasyScreen™ Enteric
Protozoan Detection Kit. Globally, protozoan
infections are among the leading contributors
to diarrhoeal disease and the leading cause of
mortality of children under five years old. In the
US alone, more than 350 million cases of acute
gastrointestinal infections are reported annually.
Genetic Signatures estimates the total
addressable market for the EasyScreen™
Enteric Protozoan Detection Kit to be 5.5
million tests per annum.
This unique molecular solution allows, in a single
sample, the rapid and accurate detection of up to
eight clinically relevant gastrointestinal parasites.
Results from EasyScreen™ tests are available
within hours, compared with days or weeks for
culture-based methods, and are typically able
to identify more infections than traditional
microscopic methods currently employed in the
US. Improved diagnosis of gastroenteritis enables
earlier, more effective treatment, improving
patient outcomes and driving significant cost
savings across health systems.
Engagement with key opinion leaders in the US
has identified a solid need for Genetic Signatures’
solution, and the Company targets to win 40% of
this addressable market within 5 years. A part of
preparing the market for this novel test includes
a recent webinar series delivered by Genetic
Signatures, featuring molecular approaches to
8
Genetic Signatures Limited – Annual Report 2022
the detection of ova and parasites, which received
solid interest and engagement. Marc Couturier,
Ph.D. Medical Director of Parasitology/Faecal
Testing, Infectious Disease Antigen Testing,
ARUP Laboratories, United States, commented
“Molecular detection for common gastrointestinal
protozoa is the logical progression of testing,
especially given the ever-increasing volumes
of traditional ova and parasite testing and
the decreasing workforce and proficiency
laboratories are experiencing.” The Company
strategy is to target approximately 30 high
throughput laboratories who will benefit from
rapid turnaround of results, increased accuracy
in detection of protozoan infections and allowing
treatments to be administered earlier. The USA
sales team have already established contact with
a number of these institutions.
In July 2022, Genetic Signatures completed
recruitment of the clinical trial required to support
the planned submission of a 510(k) application
to the US FDA in Q4 CY2022. Once cleared, the
EasyScreen™ Enteric Protozoan Detection Kit
will be the first 3base® Detection Kit cleared for
sale in the US and will provide initial access to
high volume hospital, pathology laboratory and
government customers in this market.
Established specialists
in syndromic testing for
infectious diseases
In line with Genetic Signatures’ long-term growth
strategy, the Company continued to enhance,
diversify and expand its range of EasyScreen™
detection kits available in priority markets.
Genetic Signatures has established and market
tested assays for the molecular syndromic
detection over 100 clinically relevant pathogens.
The trend towards adopting the syndromic testing
approach for infectious diseases, which involves
detecting pathogens causing similar symptoms
in a patient, is gaining increased momentum.
Molecular syndromic testing simultaneously
targets a broad range of clinically relevant
pathogens from a patient sample, in a single
test, and can include bacterial, viral, fungal and
protozoan pathogen targets. Unlike traditional
approaches, results can be delivered in hours
instead of days, improving patient management
and outcomes, reducing costs, and supporting
disease surveillance.
Genetic Signatures patented 3base® technology
is ideally suited for syndromic testing, reducing
the complexity of closely related genetic targets,
and simplifying the optimal conditions for running
multiplex real-time PCR tests.
Genetic Signatures has previously secured
regulatory clearance with the Australian TGA and
European CE-IVD Mark to market EasyScreen™
Detection Kits to test for gastrointestinal disease,
respiratory disease and antimicrobial resistance
gene targets, all of which are available for sale
in Australia and Europe. In addition, Genetic
Signatures has CE-IVD registration in place for
syndromic testing for the most prevalent sexually
transmitted diseases, including chlamydia,
gonorrhea and syphilis.
Whilst not yet cleared for IVD use, the company
has a range of other established detection kits
for the detection of tropical viral diseases and
viral meningitis. These kits have been used as a
Research Use Only (RUO) product in key research
laboratories, including the United States Army
Medical Research Directorate-Africa.
9
IMAGE TO GO HERE
To further address the potential market for
detecting other clinically relevant infectious
diseases, Genetic Signatures has more than
5 new product groupings at various stages of
development.
A game changer - Meeting customer
needs with a fully automated, high
throughput sample-to-answer workflow
Genetic Signatures’ 3base® technology and
EasyScreen™ Detection Kits can be used on
standard equipment that is typically available in
molecular diagnostics pathology laboratories. The
Company has also developed three automated
instruments that provide low to high-throughput
solutions to meet the needs of different customer
groups.
In FY2022, Genetic Signatures formally initiated
a program to develop a fully automated, high
throughput instrument for high volume users
of 3base® technology. The specifications of this
instrument were defined based on extensive
market and customer research. This Next
Generation Instrument will cover the entire
3base® process of sample extraction, PCR setup,
amplification, detection and result reporting,
with minimum operator involvement and a
genuine walk-away solution. This instrument
will be of particular interest to high volume
diagnostic laboratories and is expected to help
drive the adoption of a broader range of 3base®
EasyScreen™ products by these customers.
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Genetic Signatures Limited – Annual Report 2022
Conclusion
Over 2021/2022 Genetic Signatures continued
to generate strong sales and profits from its
growing and increasingly diversified portfolio of
multi-pathogen EasyScreen™ Detection Kits. The
Company ended the year with $36.9m cash on
hand with no debt, allowing the Group to invest
in future opportunities without the need to raise
further capital. Global demand for rapid, large
scale, accurate testing for SARS-CoV-2 variants
has enabled Genetic Signatures to establish its
global profile and demonstrate the benefits of
its proprietary 3base® technology in Australia,
Europe, the UK and the US.
Genetic Signatures is in a strong position to grow
sales of diagnostic products by increasing its
presence in European and US markets, expanding
its syndromic testing product portfolio, and
providing a simple and automated workflow that
meets the different needs of its customers. The
Company is targeting high throughput testing
at large hospitals, laboratories and government
programs who are best placed to benefit from the
significant cost efficiencies of the EasyScreen™
workflow.
Genetic Signatures has completed recruitment
to support filing for US marketing clearance of
the EasyScreen™ Enteric Protozoan Detection Kit.
Once cleared, this will be the first EasyScreen™
product in the US, providing a commercially
significant opportunity to establish the
Company in this market, while also providing the
introduction for utilisation of our other 3base®
EasyScreen™ molecular diagnostic kits.
The Company looks forward to executing its
strong research and development, registration
and marketing strategies to bring more syndromic
tests to global markets, delivering clear benefits
for patients, laboratories and health systems.
Dr John Melki
Managing Director and CEO
11
Full Year Results
Highlights
Revenue from operations ($m)
FY22 financial highlights ($m)
4-year CAGR = 89%
28.3
35.4
35.4
0.2
(20.6)
(12.0)
3.1
11.3
4.9
FY19
FY20
FY21
FY22
Genetic Signatures has completed another year
with record revenue of $35.4 million. This is the
7th consecutive year this feat has been achieved
and was a 25% increase over FY2021. Sales of
EasyScreenTM SARS-CoV-2 Detection Kits accounted
for the greater share of revenue, though the last
quarter of the financial year saw non-COVID sales
exceed SARS-CoV-2 kits for the first time since the
beginning of the pandemic. Instruments in customer
sites are now 5 times the number that were in use
in FY2019.
12
Genetic Signatures Limited – Annual Report 2021
Sales
revenue
Cost of
materials
& freight
Other
income
Net profit
Other
expenses
(incl
overhead)
Net profit of $3.1 million is 74% higher than FY2021
profit and reflects the increased sales. Gross profit
on materials was maintained at 70%. Freight costs
continue as a significant cost due to global logistics
challenges. Overall expenses have grown 20% year
on year as investments in people, R&D, clinical
trials, and marketing are made to exploit the future
opportunities, particularly in the target makets of
USA and Europe.
Cash movements ($m)
39.4
0.1
0.3
36.9
30.1
(29.7)
(1.7)
(1.3)
(0.4)
n t s
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Cash balance at 30 June 2022 was $36.9 million.
Net operating cash inflows for the year were $9.8
million and included collections from customers
of $39.4 million. Offsetting these inflows were
investments in instrumentation for use at customer
sites and in production or research facilities
($1.7m), plus capitalised intangible assets which is
primarily related to the Next Generation instrument
development ($1.3m).
13
BioLabs
Los Angeles
United States
The BioHub
Birmingham
United Kingdom
Headquarters
Sydney
Australia
Infrastructure
Investment Supports
Global Expansion
In FY2022, Genetic Signatures expanded
its production capabilities at its
headquarters in Sydney, Australia to
meet the significant growth in demand
during the COVID-19 pandemic, and to
support the Company's growing global
customer base.
The Company also expanded their international
footprint by investing in laboratory and warehousing
facilities in the United States, United Kingdom and
the Netherlands. This investment showcases Genetic
Signatures’ commitment to future growth in the
North American and European region. The additional
laboratory facilities will accelerate various research
and business activities, and provide additional
training and technical support for staff, customers,
and distributors.
Headquarters
Sydney, Australia
Genetic Signatures is headquartered in Sydney,
Australia. The large, three-story building houses
commercial office space for the key business units,
and the core laboratory facility used for research and
development, validation and quality assurance testing
of the EasyScreenTM Detection Kits and automated
systems.
The production facility is located on a separate
site, in the Sydney suburb of Maroubra, where the
EasyScreenTM Detection Kits are manufactured and
stored before being shipped to customer sites and
various global warehousing facilities.
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Genetic Signatures Limited – Annual Report 2022
The BioHub
Birmingham, United Kingdom
The BioHub Birmingham is located at the
Birmingham Research Park and is a fully serviced
biomedical incubator and accelerator for life
science companies. Genetic Signatures partnered
with The Biohub in 2022 to access the outstanding
facilities offered and the centralised location to the
UK’s local and international transport connections.
The facilities accommodate the Company’s key
instrumentation, supporting European operations
and technical support, and training for staff,
customers and distributors.
BioLabs
Los Angeles, United States
BioLabs is an 80,000 square foot co-working
laboratory and office space, located on the
third floor of the Lundquist Institute, in Los
Angeles, California. Genetic Signatures occupies
laboratory space within this facility which houses
key instrumentation, supporting research and
development capabilities and training support for
the North and South American markets.
Sydney
Headquarters
15
Marketing
& Events
Genetic Signatures’
global events circuit
accelerates
With the return of physical conferences following the COVID-19 pandemic, Genetic
Signatures significantly invested in the sponsorship and attendance of high impact
international conferences in key target markets. Event attendance aimed to build
brand awareness and relationship development with clinical diagnostic laboratories
and clinicians, and to identify potential distributors in key new markets of interest.
Key international events sponsored included:
British Society for Microbial Technology (BSMT),
London, 19th July 2022
American Society of Microbiology (ASM) Microbe,
Washington, 9th-13th June 2022
American Society of Microbiology (ASM) Clinical Virology Symposium (CVS), Florida,
1st-4th May 2022
Berufsverband der Ärzte für Mikrobiologie, Virologie und Infektionsepidemiologie
(BÄMI), Germany, April 28th-30th 2022
European Congress of Clinical Microbiology and Infectious Diseases (ECCMID), Lisbon,
23rd-26th April 2022
Institute for Biomedical Science Congress,
Birmingham, 14th-17th April 2022
Klinisch-Mikrobiologisch-Infektiologische Symposium (KMIS),
Berlin, 2nd-5th December 2021
16
Genetic Signatures Limited – Annual Report 2022
The European
Congress of Clinical
Microbiology and
Infectious Diseases
(ECCMID)
ECCMID 2022 was a huge success for the
Company, exhibiting to around 14,000 delegates,
predominantly clinicians specialising in
microbiology, from over 120 countries. Genetic
Signatures large booth promoted the Company’s
uniquely configurable syndromic testing solutions
and automated workflow. Genetic Signatures
presence generated significant interest amongst
this target audience, supporting sales enquiries
and new distributor relationships.
American Society for
Microbiology – ASM
Microbe & Clinical
Virology Symposium
(CVS)
Genetic Signatures’ expanding presence in
the Americas was supported by sponsorship
and attendance at the ASM Clinical Virology
Symposium and ASM Microbe. The key objectives
were to build brand awareness in the US market,
to demonstrate Genetic Signatures solid local
presence, and to promote the Company’s patented
3base® molecular solutions for infectious
disease testing. The educational webinar series
and supporting white paper on the ‘Advances
in Gastrointestinal Protozoa Testing’ was also
promoted, raising awareness of the benefits of
employing molecular techniques to complement
traditional diagnostic methods of ova and parasite
examinations.
17
US educational series on
‘Advances in Gastrointestinal
Protozoa Testing’ in full swing
Genetic Signatures’ unique solution for
gastrointestinal (GI) protozoa testing, the
EasyScreenTM Enteric Protozoan Detection Kit,
has been the focus of key educational initiatives
in the United States. The ongoing campaign has
been delivered in alignment with the product’s
progress for regulatory approval in the US, with
submission for FDA 510(K) application expected
in late CY22. The campaign aims to educate
clinicians and laboratory pathologists on the value
of employing molecular techniques for rapid and
accurate identification of pathogenic parasites,
critical to providing timely and appropriate patient
management and reduced disease burden.
Genetic Signatures’ EasyScreen™ Enteric Protozoan
Detection Kit uses the Company’s proprietary
3base® technology to detect 8 clinically significant
protozoan pathogens, in a single test. Results
are available within hours, compared with days
or weeks for culture-based methods, and are
typically able to identify more infections than
traditional methods. This offers many advantages
for diagnostic laboratories, clinicians and their
patients.
A white paper and educational webinar series
featuring key opinion leaders in the field of
gastrointestinal parasitology was delivered
in collaboration with the global online news
organization, 360Dx, who cover emerging economic
and technological trends in clinical diagnostics.
Solid interest in the adoption of molecular
testing for gastrointestinal protozoan testing was
generated, supporting Genetic Signatures’ future
launch of the EasyScreen™ Enteric Protozoan
Detection Kit, post FDA clearance.
Key opinion leaders supporting the white paper and webinar series ‘Advances of
Gastrointestinal Detection of Protozoa’ included:
Lexi Bracken
Research Scientist, ARUP
Laboratories
Prof David Bruckner
Professor of Pathology and
Laboratory Medicine,
Olive-View UCLA
Medical Center
Dr Marc R. Couturier
Medical Director,
ARUP Laboratories
Lynne S. Garcia
Director,
LSG & Associates,
United States
Dr Bobbi Pritt
MD Director,
Clinical Parasitology,
Mayo Clinic
Dr Damien Stark
Laboratory Manager,
Microbiology and
Precision Medicine,
St Vincent’s Sydney
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Genetic Signatures Limited – Annual Report 2022
Upcoming
Milestones
US Enteric Protozoan Detection Kit
File 510(k) application by end of CY2022
Launch product once clearance is granted
US Enteric Protozoan Detection Kit
Contracts with new customers
Direct sales force and distributor appointments
Initiation of US clinical trial for next
EasyScreen™ product
R&D initiatives for new products
New tests and EasyScreen™ kits
Technology improvements
Development of Next Generation instrument prototype
Quarterly sales updates and progress reports
19
Our People
One of Genetic Signatures’ great strengths is its people.
All team members live a set of values that guide our approach
to work, problem solving and form the cornerstones of the
Genetic Signatures’ culture.
The team has grown 75% since prior to the pandemic.
The Company is committed to providing an empowering and
engaging employment experience and is proud of its Employee
Net Promoter Score (a standard measure of overall loyalty to a
company) of 83%, and an employee engagement score of 79%.
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Genetic Signatures Limited – Annual Report 2022
All in
Everyone contributes, everyone pitches in irrespective of their role when it
comes to supporting our customers. We give every day our 'all' because we
believe in our mission and vision and are passionate about making a real
and positive difference to patient health outcomes. We all support each
other to achieve our collective goals.
Truth
We seek and speak the truth. We conduct ourselves with honesty and
integrity in all dealings with each other and our customers, providing
accurate and reliable solutions to be trusted partners.
Empowerment
We ensure that we are clear on our responsibilities and see the road to our
success, we are given ownership to get it done, and we build each other
up with the strength, capability and safe working environment to perform
at our best and make decisions to realise our success. We recognise and
celebrate our achievements.
Evolution
We are passionate about continuously evolving our professional
capability, our safe operations and innovative molecular diagnostic
solutions to ensure the best service to our customers enabling better
care health outcomes for patients.
Diversity
We understand that each individual is unique, and we recognise our
individual differences and unique perspectives make work life interesting
fuelling the innovation that create quality solutions that make a real
and positive difference to our customers and their patients’ outcomes.
Staff allocation by function
ADMIN &
SUPPORT
18%
PRODUCTION
/QC
19%
SALES
33%
R&D/VALIDATION
30%
80%
60%
40%
20%
0%
Sales
R&D/Val
Production/QC
Admin
Female
Male
21
Meet the
Directors
Board Member Profiles
Neil Gunn
A career with purpose and
the conviction to make a
difference.
Neil Gunn is a heavy hitter in the world of
diagnostics, with a career defined by his desire
to improve health and make a real difference
to peoples’ lives. With such conviction driving
him, it is no surprise that his 35-year career
in diagnostics is marked with considerable
commercial diversity and success.
Neil’s curiosity for biology started early, fueled by
his early years growing up with a father who was
a country veterinarian in Cornwall, England. He
speaks of shared family memories of time spent
at Cornish beaches learning about the various
sea creatures to be found in the rock pools. This
natural curiosity translated in his student life to
a Bachelor’s degree Biology followed by a Master
of Science and subsequent Ph.D. in Marine
Biology, before his desire to improve health saw
him naturally progress into senior commercial
roles in diagnostics. Initially in scientific/technical
marketing, Neil steered his career to work with
companies which he believed would bring innovative
technologies to market to improve people’s lives,
which were international roles based in Europe and
the United States. Neil’s senior leadership roles
have included Vice President of Roche Molecular
Diagnostics, followed by his role as President of
Roche Sequencing Solutions for many years, based
in California, USA. More recently, Neil held the role
of CEO of IDbyDNA, a metagenomics infectious
disease sequencing company which grew rapidly
under his leadership and was subsequently
acquired by Illumina.
“I continue to ask myself the question – “How will
this diagnostic solution help a physician make a
treatment or intervention decision, and consequently
help a patient at the end of the treatment pathway?”
said Neil.
22
Genetic Signatures Limited – Annual Report 2022
It is this question that led Neil to accept a non-
executive role at Genetic Signatures. Neil remarked
“It was clear to me that the unique 3Base®
technology underpinning Genetic Signatures’
product portfolio offered a differentiated solution
that can improve health. It offers a competitive
advantage over other diagnostic solutions on the
market.”
Neil identifies passion, ambition and talent as key
ingredients for success; ingredients he also sees in
the Genetic Signatures’ team.
“I have been on the board for a little over a year and
very much enjoyed my interactions with the other
board members and, more importantly, with the
management team. Understanding the true potential
of the Company and its unique technology has been a
great experience.”
“The ability to build new differentiated syndromic
panels is exciting and compelling. COVID-19 has
demonstrated the Company’s ability to quickly pivot
to operate in high volume settings, whilst providing
exceptional customer service. We have learned how
to achieve this in Genetic Signatures’ home country,
Australia. We will now replicate this success and
continue the brand’s expansion into key regions with
new innovative and differentiated products.”
The Genetic Signatures’ team feels fortunate to
have a leader of Neil’s calibre on the Board of
Directors with a shared vision to improve patient
health outcomes. Neil’s guidance has and will
continue to shape the Company’s strategic direction
for the delivery of new and existing solutions
into targeted geographies – and to make a real
difference to people’s lives.
Caroline Waldron
Caroline Waldron joined Genetic Signatures in
May 2022 as a non-executive director, bringing
30+ years of diverse international and ASX
executive experience across multiple sectors,
fostered by an appetite for change, a naturally
curious mind, and a forward-thinking mindset. It
is this diversity of experience, unique leadership
and vision that has made Caroline a valuable,
and complementary addition to the Board of
Directors.
“My 34 years of experience has been one of
continuous learning gained from a variety of leadership
responsibilities, industries and jurisdictions. Basically, I
have had to be super-adaptable and reinvent myself at
least six times - from a career in law, to HR, to risk and
audit, to marketing, to CEO, to a non-executive director!”
said Caroline.
Caroline humbly attributes her adaptability and success
to her upbringing and early life experiences. Caroline’s
family strongly valued all forms of education and
fostered the courage and resilience to extend out of
one’s comfort zone to embrace new opportunities.
“We were always encouraged to look beyond obstacles,
focussing instead on ways to navigate them. This
approach helped me succeed in my professional journey.”
These values supported Caroline’s diverse career path
to read law at the University of London, and subsequent
admission as a barrister of the Middle Temple, before
moving to Australia in 1999 to join an ASX-listed
technology company. This was a purposeful journey
with a clear focus to acquire the necessary skills and
experience to support a transition to non-executive
director roles, which Caroline currently holds with three
ASX companies and an aged care entity.
“One of the benefits of working across different sectors
is the ability to bring fresh eyes to a situation and apply
parallel learnings where appropriate. Also, aside from
being able to process relevant information quickly, every
director needs to regularly scan the external environment
and understand the implications for their businesses.”
Caroline’s experienced eye for identifying companies
with solid growth potential, aligned values of continuous
improvement and a customer-centric mindset, saw
her accept a non-executive director role at Genetic
Signatures.
“The business itself is attractive - a profitable
biotech, with a proven proprietary technology and a
growing global footprint. Perhaps the most important
thing is that everyone, from my fellow directors to
management, is serious about product excellence,
customer satisfaction and shareholder returns. These
are essential fundamentals of any business. There
is also a genuine interest, at all levels, to be better at
what we do.”
Caroline sees an exciting future for Genetic
Signatures as the Company further expands their
global footprint, whilst maintaining a deliberate focus
on meeting their customers’ needs.
“We learnt a tremendous amount from the pandemic,
and it has created significant opportunities for the
Company. We demonstrated that we can quickly
adapt to rapid growth whilst maintaining excellence
in customer service. We are building on this success
and scanning the horizon to maximise our growth
opportunities. We have an experienced and unified
team who are authentic in their desire to improve
global health outcomes. We look positively into the
future.”
When asked for words of advice for companies
striving for diversity of experience and gender,
Caroline shared:
“It is imperative that we actively and genuinely
improve diversity in the workplace. For too long
we have seen organisations pay lip-service to this.
Boards have a role to play in this too, through regular
reporting and interrogation of succession plans,
remuneration policies and hiring strategies. We need
to ensure that any systemic blockers to diversity are
identified, challenged and removed.
To aspiring female non-executive directors I say,
gain as much experience as possible outside your
traditional areas of expertise. Grow within and beyond
your functions, take risks and embrace leadership
positions where possible.”
23
For the financial year
ended 30 June 2022
Contents
Directors’ Report ..............................................................26
Remuneration Report .......................................................34
Financial Report
Consolidated Statement of Profit or Loss
and other Comprehensive Income ..........................42
Consolidated Statement of
Financial Position ....................................................43
Consolidated Statement of Changes in Equity .....44
Consolidated Statement of Cash Flows ................45
Notes to the Financial Statements .......................46
Directors’ Declaration ......................................................71
Auditors Declaration ........................................................72
Independent Audit Report ...............................................73
Analysis of Holdings ........................................................77
Shareholder Information .................................................78
24
Genetic Signatures Limited – Annual Report 2022
Financial Report 2022
25
25
Directors’ Report
GENETIC SIGNATURES LIMITED
ABN: 30 095 913 205
DIRECTORS’ REPORT
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
The directors present their report, together with the financial statements, on the company and its
controlled entities for the year ended 30 June 2022. This will hereafter be referred to as company,
consolidated entity or group.
DIRECTORS
The following persons were directors of the company during the whole of the financial year and up to the
date of this report, unless otherwise stated:
Nickolaos Samaras
Michael A Aicher
Neil Gunn
PRINCIPAL ACTIVITIES
John R Melki
Anthony J Radford
Caroline Waldron (appointed 13 May 2022)
The principal activities of the Company during the financial year were the research into identifying and
commercialisation of individual genetic signatures to aid in the diagnosis of infectious diseases and
the sale of associated products into the diagnostic and research marketplaces. There have been no
significant changes in these activities during the year.
REVIEW OF OPERATIONS
Genetic Signatures has completed another record year, the seventh consecutive year of growth in sales
revenue since listing in 2015. During the year the Group was successful in opening new customer sites
in both Australia and Europe and expanding the range of tests undertaken using EasyScreen™ beyond
SARS-CoV-2.
In the financial year ending 30 June 2022, Genetic Signatures’ revenue was $35,421,000 representing
a 25% increase over the previous year. This revenue growth was driven by demand for EasyScreen™
SARS-CoV-2 Detection Kit though sales of other EasyScreen™ kits have increased proportionally, with
revenue from non-COVID kits higher in the fourth quarter of FY2022.
Genetic Signatures posted a full
year net profit of $3,063,000, up
the prior
74%
corresponding period ($1,756,000).
compared
to
to
Gross margins on materials were
70%, consistent with the previous
year. Freight and warehousing
costs continue as a significant cost
due
increased volumes and
general global logistics challenges
that have been widely reported in
the media. Margins are expected to
be maintained or improved as the
proportion of
international sales
rises.
Revenue from operations ($m)
35.4
3.8
31.6
28.3
6.0
22.2
FY21
FY22
4.9
FY19
11.3
1.1
10.2
FY20
APAC
International
Significant investments have been made over the year to prepare to take advantage of future growth
opportunities, and this has been shown in the increase in expenses from the previous year. Employee
benefits expense were up 14% vs. prior corresponding period to $11,471,000 due to growth in
headcount globally. This also includes share-based payments expense of $1,915,000, a non-cash item.
Scientific consumables increased 13% over prior year, reflecting the work on continuing and new R&D
projects, clinical trial costs for the US FDA Enteric Protozoan submission, and initial expenses related
to the Next Generation instrument development. Costs for the next phases of the Next Generation
project are now being capitalised. Marketing & travel expenses increased over the prior year as
restrictions on travel ease and markets, particularly the US, are being prepared for the launch of new
products.
26
Genetic Signatures Limited – Annual Report 2022
2
for the financial year ended
30 June 2022
GENETIC SIGNATURES LIMITED
ABN: 30 095 913 205
DIRECTORS’ REPORT
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
Cash on hand was $36,897,000 at 30 June 2022 and the Group remains debt free. Genetic Signatures
has reported net operating cash inflows for the year of $9,806,000 which includes collections from
customers of $39,405,000. Offsetting this were $1,714,000 investments in instrumentation for use at
customer sites and machinery for production or research work, and $1,275,000 in capitalised intangible
assets, mostly related to development of the Next Generation instrument referred to above. Inventory
balances reduced through the year as stock was used and supply chains eased. Genetic Signatures is
well capitalised to make investments in future growth opportunities.
Commercialisation Progress by Market
Australia
Genetic Signatures had a successful year in its home market. The Company was able to continue
supplying its customers through the worst of the pandemic without disruption and secured new
business. Later in the financial year demand for SARS-CoV-2 tests diminished though this was offset
by a resurgence in other respiratory infections such as influenza and RSV for which Genetic Signatures
was able to supply its syndromic test kits that detect 15 types of respiratory infection. Whilst SARS-
CoV-2 testing is reduced Genetic Signatures has the flexibility to scale up again to meet demand, when
required.
Good progress has been made on development of Genetic Signatures fully automated, high-throughput
Next Generation Instrument. This instrument has been designed to address the diagnostic laboratory’s
need for a fast, automated sample to result solution that retains high throughput capabilities and is
simple to use. This new instrument will firmly position Genetic Signatures’ unique products and
instrumentation at the forefront of molecular testing of infectious diseases.
Europe
Genetic Signatures was able to expand its footprint in Europe acquiring new sites and expanding the
range of products sold to customers. The region contributed 11% of total sales revenue in FY2022. As
with Australia, SARS-CoV-2 only testing is reducing as governments withdraw support for population-
wide screening. The Genetic Signatures’ sales & support teams, based in UK and Germany, are using
the opportunity to sell the benefits of the other CE-IVD marked diagnostic kits in the portfolio. The Group
has also been active marketing through both attendance at important conferences such as The
European Congress of Clinical Microbiology & Infectious Diseases (ECCMID) and has supported a
marketing campaign by a German customer, KH Labor, who have been using the EasyScreen™ SARS-
CoV-2 detection kit for more than 12 months.
North America
The primary focus for the US team has been on progressing the FDA application for the EasyScreenTM
Enteric Protozoan Detection Kit. Recruitment and sample collection at the three sites has been
completed, as announced in July 2022. Samples are now being analysed and the Company anticipates
filing the FDA application in Q4 CY2022. Once cleared, this will be the first 3base® EasyScreen™
detection kit to secure marketing clearance in the U.S. and will support subsequent uptake of other
EasyScreen™ detection kits.
Genetic Signatures estimates the total addressable market to be 5.5 million tests per annum, and
targets to win 40% of this market within 5 years. An educational series was launched in the U.S. with a
series of live webinars featuring leading key opinion leaders highlighting the benefits of the molecular
detection of gastrointestinal parasites. Preparatory work has also started for a second syndromic
product to be put through the FDA process with trials to commence this half year.
Looking Forward
Genetic Signatures has an exciting year ahead as it manages the transition from SARS-CoV-2 to
expanding the range of EasyScreen™ tests that current and new customers use day to day.
The Group is focused on its goal of being a solution of choice for pathology laboratories. Key goals over
the next 12 months include:
(cid:149) Submitting a quality US FDA application by the end of CY2022, then successfully launching the
product once clearance is granted.
3
27
Directors’ Report
GENETIC SIGNATURES LIMITED
ABN: 30 095 913 205
DIRECTORS’ REPORT
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
(cid:149) Commencing regulatory clinical trials for the next product to be put through the US FDA.
(cid:149) Progressing the Next Generation instrument through its development phases with early-stage
prototypes available for comprehensive testing .
(cid:149) Expanding the European customer base and the range of tests adopted by customers. This includes
establishing direct or distributor-based sales teams in markets not currently served.
(cid:149) Continuing R&D activity and moving new products from the development phase towards
commercialisation.
The above milestones will again broaden Genetic Signatures’ applicability to pathology testing
laboratories and will secure further growth, particularly in the target regions of Europe and the US.
STATE OF AFFAIRS
There have been no significant changes in the state of affairs of the Group during the year.
DIVIDENDS
No dividends were paid or were payable during the year (2021: NIL).
EVENTS SUBSEQUENT TO THE REPORTING DATE
The impact of the Coronavirus (COVID-19) pandemic is ongoing and while it has been financially
positive for the consolidated entity up to 30 June 2022, it is not practicable to estimate the potential
impact, positive or negative, after the reporting date. The situation continues to evolve as new variants
of concern are identified and, as such is dependent on measures imposed by authorities in countries
where Genetic Signatures supplies test kits, such as effectiveness of vaccine rollout, government
interventions to support testing regimes through either promotion or economic stimulus, and via other
public health orders including quarantine, wearing of face masks or travel restrictions.
A contract to supply EasyScreen™ Enteric Diagnostic Kits to Public Health Wales was won during
FY2022. During initiation of these sites’ implementation issues have caused interruptions to the rollout,
which was subject to a stringent timetable due to the northern hemisphere flu season. At this stage the
contract will not proceed as planned. The customer has reinforced their desire to roll out the Genetic
Signatures solution due to its superior targets and workflow, but these imperatives on timing have led
to a review of the contract. While we are advised that we should resubmit for the tender as it will not
likely be possible to implement until calendar 2023 at the earliest. As such there is a high likelihood
that no revenue will be recognised in the coming financial year from this customer. No revenue has
been recorded from this contract in FY2022.
Other than the above, there has not arisen in the interval between the end of the financial year and the
date of this report any other item, transaction or event of a material and unusual nature likely in the
opinion of the directors of the Company to affect significantly the operations of the Company, the results
of those operations or the state of affairs of the Company in future financial years.
LIKELY FUTURE DEVELOPMENTS
Likely developments in the operations of the Company and the expected results of those operations in
future financial years are:
(cid:149) A submission for US FDA clearance for its EasyScreen™ Enteric Protozoan Detection Kit is
expected to be lodged by the end of calendar year 2022. If clearance is granted then the Group
will be able to sell a fully cleared product in the USA for the first time. The Group cannot forecast
the potential positive financial impact at this stage.
(cid:149) Work is underway on development of a new instrument. This project has been estimated to cost
between $10-12 million, including external consultancy, prototyping and other internal costs.
ENVIRONMENTAL COMPLIANCE
The Company’s operations are not regulated by any significant environmental regulation under a law of
the Commonwealth or of a State or Territory.
28
Genetic Signatures Limited – Annual Report 2022
4
for the financial year ended
30 June 2022
GENETIC SIGNATURES LIMITED
ABN: 30 095 913 205
DIRECTORS’ REPORT
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
DIRECTORS
Name:
Qualifications:
Experience:
Special responsibilities:
Nickolaos Samaras
BSc (Hons), PhD, MBA, FAIM, FAICD
Dr. Samaras has had over 30 years’ business experience in the
global Life Sciences industry and is a recognised and respected
industry expert. He has held a number of senior executive level
positions in management, marketing, sales, and research and
development. His roles have included appointments as Managing
Director of Applied Biosystems Pty Ltd (now part of Thermo Fisher),
and senior roles with Perkin Elmer and AMRAD Corporation (now
part of CSL).
Dr. Samaras is an experienced executive, non-executive and Board
Chairman, having served on the boards of several biotechnology
companies.
Dr. Samaras holds a BSc with Honours in Pathology and
Immunology from Monash University and a PhD from the
Department of Medicine at The University of Melbourne. He also
holds postgraduate business qualifications which include an MBA
from the School of Management at RMIT University and is a Fellow
of the Australian Institute of Company Directors.
Non-Executive Chairman; Chairman Nomination and Remuneration
Committee; Chairman Audit & Risk Committee
Directorships of other listed
companies:
Nil
Interests in shares and options: 2,024,016 ordinary shares
Name:
Qualifications:
Experience:
Special responsibilities:
John R Melki
BSc (Hons), PhD
Dr. Melki has led the commercialisation efforts of Genetic Signatures
as Chief Executive Officer since 2011. Dr. Melki originally joined
Genetic Signatures in 2003 where he was responsible for leading the
commercialisation of two research products (worldwide) and five
diagnostic products (locally and Europe) in the role of Senior
Principal Research Scientist. He has authored over 20 peer-reviewed
articles and is listed as an inventor on eight patent applications. Dr.
Melki received his BSc from the University of New South Wales and
his PhD from the University of Sydney, where his thesis was awarded
the Peter Bancroft Prize from the Medical School. His primary
research focus was in the sodium bisulphite conversion of DNA which
is at the core of Genetic Signatures’ 3base™ technology.
Managing Director and Chief Executive Officer
Directorships of other listed
companies:
Interests in shares and options: 1,096,000 ordinary shares,
Nil
550,000 options over ordinary shares
5
29
Directors’ Report
GENETIC SIGNATURES LIMITED
ABN: 30 095 913 205
DIRECTORS’ REPORT
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
Name:
Qualifications:
Experience:
Special responsibilities:
Anthony J Radford AO FTSE
BSc (Hons), PhD, DipCorpMan
Dr. Anthony Radford has a PhD from La Trobe University, and was a
member of the CSIRO team that invented the QuantiFERON method
for Cellular Immune based diagnostics. He later joined AMRAD in
pharmaceutical research and was Head of Development in 2000 when
he left to co-found the diagnostic company Cellestis Limited, which
listed on the ASX in 2001. Establishing offices and operations in the
USA, Europe and Japan, Cellestis developed QuantiFERON –TB
Gold, the worldwide benchmark for diagnosis of tuberculosis infection.
Dr. Radford was CEO of Cellestis from founding until its acquisition by
QIAGEN NV in 2011. He is a Fellow of the Australian Academy of
Technology and Engineering, and a recipient of their Clunies Ross
Prize.
Non-Executive; Member of Audit & Risk Committee and Nomination &
Remuneration Committee
Directorships of other listed
companies:
Nil
Interests in shares and options: 240,000 ordinary shares
Name:
Qualifications:
Experience:
Special responsibilities:
Neil Gunn
BSc, Msc, PhD
Dr Gunn holds a PhD and Master of Science from Portsmouth
Polytechnic, UK. He has over 30 years’ experience in medical devices
and diagnostics. Most recently Dr Gunn was CEO of IDbyDNA, a
metagenomics company based in the US that was acquired by Illumina
in 2022. Prior to this he was the President of Roche Sequencing
Solutions where he oversaw all aspects of the business and managed a
team of approximately 900 people. His team developed and launched
more than 20 products per year. Dr Gunn was also previously Vice
President of Roche’s Molecular Diagnostics business and was
responsible for over 120 diagnostic product launches principally into the
IVD clinical market.
Dr Gunn is based in San Francisco, USA.
None
Directorships of other listed
companies:
Nil
Interests in shares and options: 250,000 options over ordinary shares
30
Genetic Signatures Limited – Annual Report 2022
6
for the financial year ended
30 June 2022
GENETIC SIGNATURES LIMITED
ABN: 30 095 913 205
DIRECTORS’ REPORT
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
Name:
Qualifications:
Experience:
Special responsibilities:
Michael A Aicher
BSc, MBA
Mr. Aicher has over 30 years of industry experience and was CEO and
founder of National Genetics Institute (NGI) which was acquired
by Laboratory Corporation of America, Inc. (LabCorp) in 2000. Mr.
Aicher led LabCorp’s Esoteric Business Units, which generated more
than $1 billion in annual revenue. Prior to NGI, Mr. Aicher served in a
number of executive leadership roles at Central Diagnostics
Laboratory. He currently serves as a director on boards of Roswell
Biotechnologies, Techcyte and CytoBay. He is certified by the
University of California at Berkeley as a Global Biotechnology
Executive and is a recipient of Ernst & Young’s “Entrepreneur of the
Year” award for emerging technologies. Mr. Aicher received a BS in
Business Administration from the University of Redlands.
Executive Director – US Operations
Directorships of other listed
companies:
Interests in shares and options: 645,785 ordinary shares
Nil
Name:
Qualifications:
Experience:
Special responsibilities:
Caroline C Waldron
LLB (Hons), GAICD, FGIA
Ms Waldron is cross-border advisor and director with over 30 years
expertise in governance, marketing, human resources, and digital
transformation across a range of sectors. Ms Waldron’s formal
training is in law and she has been admitted to the Bar of England
and Wales and the courts of other jurisdictions including Australia
and New Zealand. Ms Waldron holds an LLB (Hons) from the
University of London, is a Graduate of the AICD, and a Fellow
of Governance Institute of Australia.
Member - Audit & Risk Committee
Directorships of other listed
companies:
Non-executive Director – Resimac Group Ltd
Non-executive Director – AMA Group Ltd
Interests in shares and options: Nil
Company Secretary
Name:
Qualifications:
Experience:
Peter L Manley
BBus, CPA, AGIA
Mr Manley was appointed Company Secretary of Genetic Signatures
in March 2019. Mr Manley is an experienced company secretary who
also holds the position of Chief Financial Officer. Previous roles
include CFO & Company Secretary for listed life sciences companies
AtCor Medical Holdings Limited (now Cardiex Ltd) and Sirtex Medical
Ltd.
7
31
Directors’ Report
GENETIC SIGNATURES LIMITED
ABN: 30 095 913 205
DIRECTORS’ REPORT
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
DIRECTORS’ MEETINGS
The number of meetings of the board of directors (including board committees) held during the year
ended 30 June 2022, and the numbers of meetings attended by each director are set out below:
Board
Audit & Risk
Committee
Nomination &
Remuneration Committee
Name
Nickolaos Samaras
John R Melki
Anthony J Radford
Michael A Aicher
Neil Gunn
Caroline C Waldron
Held
9
9
9
9
9
1
Attended
9
9
8
9
8
1
Held
2
-
2
-
-
-
Attended
2
-
2
-
-
-
Held
2
-
2
-
-
-
Attended
2
-
2
-
-
-
OPTIONS
There were 5,689,750 unissued ordinary shares of the company under option outstanding at the date of
this report. During the financial year 1,951,000 new options were issued, 478,750 were exercised, and
152,500 were forfeited.
INDEMNIFICATION OF OFFICERS AND AUDITORS
Genetic Signatures Ltd has indemnified the directors and executives of the company for costs incurred, in
their capacity as a director or executive, for which they may be held personally liable, except where there is
a lack of good faith.
During the financial year, the company paid a premium in respect of a contract to insure the directors and
executives of the company against a liability to the extent permitted by the Corporations Act 2001. The
contract of insurance prohibits disclosure of the nature of the liability and the amount of the premium.
PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring
proceedings on behalf of the company, or to intervene in any proceedings to which the company is a party
for the purpose of taking responsibility on behalf of the company for all or part of those proceedings.
NON-AUDIT SERVICES
During the financial year, the following fees for non-audit services were paid or payable to the auditor,
BDO or their related practices:
Tax compliance services
Other non-audit services
Total fees for non-audit services
2022
$
43,180
-
2021
$
27,345
-
43,180
27,345
On the advice of the Audit and Risk Committee, the directors are satisfied that the provision of non-audit
services by the auditor, as set out above, did not compromise the auditor independence requirements of
the Corporations Act 2001 for the following reasons:
(cid:149) All non-audit services have been reviewed by the Audit and Risk Committee to ensure that they
do not impact the integrity and objectivity of the auditor; and
(cid:149) None of the non-audit services undermine the general principles relating to auditor independence
as set out in APES 110 Code of Ethics for Professional Accountants.
32
Genetic Signatures Limited – Annual Report 2022
8
for the financial year ended
30 June 2022
GENETIC SIGNATURES LIMITED
ABN: 30 095 913 205
DIRECTORS’ REPORT
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
AUDITOR’S INDEPENDENCE DECLARATION
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act
2001 is set out on page 72 .
Rounding of Amounts
The company is of a kind referred to in ASIC Legislative Instrument 2016/191, relating to the ‘rounding
off’ of amounts. Amounts in this report have been rounded off in accordance with the instrument to the
nearest thousand dollars, or in certain cases, to the nearest dollar.
This report is made in accordance with a resolution of directors.
John Melki
Director
Sydney
31 August 2022
9
33
Remuneration Report
GENETIC SIGNATURES LIMITED
ABN: 30 095 913 205
DIRECTORS’ REPORT
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
REMUNERATION REPORT - AUDITED
The remuneration report is set out under the following main headings:
1. Remuneration principles and key management personnel
2. Non-executive director remuneration
3. Executive remuneration
4. Equity disclosures
5. Employment agreements
1 REMUNERATION PRINCIPLES AND KEY MANAGEMENT PERSONNEL
1.1 Policy for determining the nature and amount of key management personnel
remuneration
The Board’s remuneration policy determines the nature and amount of remuneration for Board
members and senior executives of the Company. The policy, setting the terms and conditions for the
Executive Directors and other senior executives, was developed by the Remuneration & Nomination
Committee and approved by the Board. The Board ensures that the Company’s remuneration levels
are appropriate in the markets in which it operates and are applied, and seen to be applied, fairly.
Non-executive directors
Fees and payments to non-executive directors reflect the demands which are made on, and the
responsibilities of, the directors. Non-executive directors’ fees and payments are reviewed with
reference to market rates for comparable companies. The chairman’s fees are determined
independently to the fees of non-executive directors. The Chairman is not present at any discussions
relating to determination of his own remuneration. Non-executive directors are entitled to receive
share options, following approval by the shareholders of Genetic Signatures Limited.
Non-executive directors’ fees are captured within an aggregate directors’ pool limit, which is
periodically recommended for approval by shareholders. The pool stands at $450,000 excluding
share-based payments which are subject to separate shareholder approval.
Executive directors and senior executives
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 aligns executive reward with
achievement of strategic objectives, and the creation of value for shareholders. The Board ensures
that executive reward satisfies the following key criteria.
Alignment to company and shareholders’ interests:
(cid:149) Has company growth as a core component of plan design
(cid:149) Focuses on sustained long-term growth in shareholder wealth
(cid:149) Attracts and retains high calibre executives
(cid:149) Total remuneration is comparable to market standards.
Alignment to program participants’ interests:
(cid:149) Rewards capability and experience
(cid:149) Reflects competitive reward for contribution to growth in company value
(cid:149) Provides a clear structure for earning rewards
(cid:149) Provides recognition for contribution.
The framework provides a mix of fixed and variable pay, and a blend of short and long-term
incentives.
34
Genetic Signatures Limited – Annual Report 2022
10
for the financial year ended
30 June 2022
GENETIC SIGNATURES LIMITED
ABN: 30 095 913 205
DIRECTORS’ REPORT
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
1.2 Key management personnel
The following persons were key management personnel of Genetic Signatures Limited during the
financial year:
Non-executive directors
Dr Nickolaos Samaras - Chairman
Dr Anthony J Radford AO
Dr Neil Gunn
Ms Caroline C Waldron (appointed 13 May 2022)
Executive directors
Dr John R Melki - Managing Director & Chief Executive Officer
Michael A Aicher - Executive Director, US Operations
Other executives
Peter L Manley - Chief Financial Officer/Company Secretary
2 NON-EXECUTIVE DIRECTOR REMUNERATION
Directors’ Fees
The current remuneration was increased for Directors in recognition of business growth and resulting
extra time and commitment from Non-executive Directors. Fees are inclusive of committee fees.
Board fees per annum
Chairman
Non-executive director (Australian based)
Non-executive director (overseas)
$108,000
$60,000
60,000 (USD, EUR or GBP depending on location)
Superannuation
Superannuation contributions for Australian-based non-executive directors are in addition to the Board
fees and are calculated at a rate of 10.5% of the base fee, having increased from 10% in FY2022 as
required under the statutory superannuation guarantee. Directors may elect to salary sacrifice
additional payments to their fund.
Share-based payments
Non-executive directors are not entitled to any performance related remuneration but may receive
option or equity grants if approved by shareholders. During the year one Director was granted
250,000 options over ordinary shares at the 2021 AGM.
2.2 Non-executive director remuneration
Non-executive directors
Nickolaos Samaras
Anthony J Radford
Neil Gunn1
Caroline Waldron
(appointed 13 May 2022)
Total
Year
2022
2021
2022
2021
2022
2021
2022
2022
2021
Cash salary
and fees
$
108,000
96,000
60,000
56,250
82,426
19,479
7,955
258,381
171,729
Super-
annuation
$
10,800
9,120
6,000
5,344
-
-
795
17,595
14,464
Share-based
payments
$
-
-
-
-
86,937
-
-
86,937
-
Total
$
118,800
105,120
66,000
61,594
169,363
19,479
8,750
362,913
186,193
1
N Gunn is paid in USD. Changes in base pay are attributable to the stronger AUD against the USD
through FY22 (Ave rate FY22: 0.7283, FY21: 0.7428).
11
35
Remuneration Report
GENETIC SIGNATURES LIMITED
ABN: 30 095 913 205
DIRECTORS’ REPORT
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
3 EXECUTIVE REMUNERATION
The executive pay and reward framework has four components:
* Base pay and benefits
* Other remuneration such as superannuation
* Short-term performance incentives, and
* Long-term incentives through participation in the Genetic Signatures Employee Incentive Plan
The combination of these comprises the executive’s total remuneration.
Base pay
Structured as a total employment cost package which may be delivered as a combination of cash and
prescribed non-financial benefits at the executive’s discretion.
Executives are offered a market competitive base pay that comprises the fixed component of pay and
rewards. Base pay for executive directors and senior executives is reviewed annually to ensure the
executive’s pay is aligned with the market.
There are no guaranteed base pay increases included in any executives’ contracts.
Benefits
Executives may receive benefits including parking, car allowances or health insurance.
Retirement Benefits
Statutory superannuation payments are made to a fund selected by Australian based executives.
Executives may also elect to salary sacrifice additional payments to their fund. No other retirement
benefits are offered.
Short term incentives
Each executive may have a target short-term incentive (STI) opportunity depending on the
accountabilities of the role and impact on the organisation or business unit performance.
Each year the remuneration committee considers the appropriate financial targets and KPI’s to link the
STI plan and the level of payout if targets are met. This includes setting any maximum payout under
the STI plan, and minimum levels of performance to trigger payment of STI.
For the year ended 30 June 2022, the KPI’s linked to STI plans were based on group, individual and
personal objectives. The KPI’s required performance growing sales revenue, with particular emphasis
on advancement in overseas markets, securing US FDA clearance for the Group’s first product and
progress on the next generation instrument development.
The remuneration committee is responsible for assessing whether KPI’s are met. To help make this
assessment, the committee receives detailed reports on performance from management.
The short-term bonus payments may be adjusted up or down in line with under or over achievement
against the target performance levels. This is at the discretion of the remuneration committee.
Long term incentives
Genetic Signatures Equity Incentive Plan (EIP)
Options are issued to executives (including the CEO) with the aim of aligning executive interests with
those of shareholders. The proportion of long-term incentives increases with the level of seniority of
the executive.
Options are granted under the EIP. The Plan is open to those employees and Directors whom the
Directors believe have a significant role to play in the continued development of the Group’s activities.
Options are granted under the Plan for no consideration. They are granted for a 15-year period, and
25% of each new tranche vests and is exercisable after each of the first four anniversaries of the date
of the grant. 350,000 options were issued in 2022 to key management personnel as at the date of this
report.
36
Genetic Signatures Limited – Annual Report 2022
12
for the financial year ended
30 June 2022
GENETIC SIGNATURES LIMITED
ABN: 30 095 913 205
DIRECTORS’ REPORT
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
Relationship between Remuneration Policy and Company Performance
The remuneration policy has been tailored to align shareholders, directors and executives’ goals. Two
methods have been applied to achieve this aim, the first being a performance-based bonus based on
KPIs, and the second being the issue of options to directors, executives and staff to encourage the
alignment of personal and shareholder interests.
The following table shows the gross revenue, profits and dividends for the last five years for the
consolidated entity, as well as the share prices at the end of the respective financial years. Analysis of
the actual figures show significant growth by the consolidated entity and a transition from a loss maker
to a profitable Group that continues to develop new products, commercialise its existing products and
develop new markets and customers.
The Board is of the opinion that these results can be attributed, in part, to the previously described
remuneration policy and is satisfied with the results over the past five years.
Revenue
Net profit/(loss) attributable to
owners of the parent entity
Share price at year end
Dividends paid (cents per
share)
2022
$
35,421
3,062
2021
$
28,284
1,756
2020
$
11,263
(2,086)
2019
$
4,866
(3,492)
2018
$
2,840
(3,254)
1.16
-
1.10
-
2.15
-
1.35
-
0.37
-
Voting and Comments made at the Company’s 2021 Annual General Meeting (‘AGM’)
The Company received 86.1% of “for” votes in relation to its remuneration report for the year ended
30 June 2021. No issues were raised with Directors concerning the Report.
13
37
Remuneration Report
GENETIC SIGNATURES LIMITED
ABN: 30 095 913 205
GENETIC SIGNATURES LIMITED
ABN: 30 095 913 205
DIRECTORS’ REPORT
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
DIRECTORS’ REPORT
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
3.1 Executive director remuneration
3.1 Executive director remuneration
Fixed
remuneration
Fixed
remuneration
Year
Cash
salary and
fees
$
John R Melki
CEO
2022 366,906
John R Melki
CEO
2021 354,736
Michael A Aicher1
Executive Director
Peter L Manley
CFO
Total
2022 178,907
Michael A Aicher1
2021 161,552
Executive Director
2022 233,273
Peter L Manley
CFO
2021 227,264
2022 779,086
Total
2021 743,552
-
Non-
monetary
benefits
$
Cash
salary and
Super-
fees
annuation
$
$
25,384
2022 366,906
25,000
2021 354,736
-
2022 178,907
-
2021 161,552
27,373
2022 233,273
24,485
1,964
-
-
-
-
Long-term
benefits:
Non-
Annual and
monetary
long service
benefits
leave
$
$
29,683
-
28,818
1,964
-
-
-
-
19,181
-
18,623
Super-
annuation
Subtotal
$
421,973
25,384
410,518
25,000
178,907
161,552
279,827
-
-
Variable
remuneration
Long-term
benefits:
Annual and
long service
Short term
leave
incentive2
$
$
39,535
29,683
72,490
28,818
-
Share-based
Subtotal
payments3
$
151,379
421,973
Short term
incentive2
Fixed
Total
$
$
%
69%
612,887
39,535
141,742
410,518
624,750
66%
72,490
-
178,907
-
-
-
26,000
-
161,552
139,248
178,907
161,552
445,075
100%
-
100%
-
63%
270,372
27,373
15,000
19,181
124,606
279,827
409,978
26,000
66%
-
52,757
2021 227,264
49,485
2022 779,086
1,964
48,864
-
47,441
-
880,707
24,485
842,442
52,757
65,535
18,623
87,490
48,864
290,627 1,236,869
270,372
15,000
266,348 1,196,280
880,707
65,535
Variable
remuneration
Remuneration
proportions
Remuneration
proportions
Share-based
At risk
At risk
payments3
LTI
STI
$
%
%
6%
25%
151,379
12%
141,742
0%
22%
0%
0%
6%
139,248
4%
-
0%
-
31%
30%
Total
$
612,887
624,750
Fixed
%
69%
66%
178,907
100%
161,552
100%
445,075
At risk
At risk
STI
%
6%
12%
0%
0%
6%
4%
LTI
%
25%
22%
0%
0%
31%
30%
63%
66%
124,606
409,978
290,627 1,236,869
266,348 1,196,280
1
2
3
M Aicher is paid in USD. Changes in base pay are attributable to the stronger AUD against the USD through FY22 (Ave rate FY22: 0.7283, FY21: 0.7428).
Cash bonus is the amount paid or payable for the respective financial year.
This represents the proportional fair value of options on issue not yet vested or vested during the reporting period. Options are valued using a Black-Scholes
model as described in Note 18 to the accounts.
2021 743,552
842,442
87,490
47,441
49,485
1,964
1
2
3
M Aicher is paid in USD. Changes in base pay are attributable to the stronger AUD against the USD through FY22 (Ave rate FY22: 0.7283, FY21: 0.7428).
Cash bonus is the amount paid or payable for the respective financial year.
This represents the proportional fair value of options on issue not yet vested or vested during the reporting period. Options are valued using a Black-Scholes
model as described in Note 18 to the accounts.
14
14
38
Genetic Signatures Limited – Annual Report 2022
for the financial year ended
30 June 2022
GENETIC SIGNATURES LIMITED
ABN: 30 095 913 205
DIRECTORS’ REPORT
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
Short term incentives
J.R. Melki
M.A. Aicher
P.L. Manley*
STI potential
Percentage of base
$
111,240
-
-
%
30
Paid
%
35.5
Forfeited
%
64.5
* Bonus payable to P Manley is 100% at discretion of the Board
4 EQUITY DISCLOSURES
4.1 Key Management Personnel Share Movements
Details of equity instruments (other than employee share ownership plan restricted shares) held
directly, indirectly or beneficially by key management personnel are as follows:
Name
Balance at
1 July 2021
Granted as
compensation
Received on
conversion of
options
Other
changes
Balance at
30 June
2022
Balance
held
nominally
N. Samaras
J.R Melki
M.A Aicher
A.J Radford
N Gunn
P.L Manley
Total
2,024,016
1,096,000
645,785
240,000
-
20,408
4,026,209
-
-
-
-
-
-
-
-
-
-
-
-
50,000
50,000
-
-
-
-
-
-
-
2,024,016 1,393,000
1,096,000 1,096,000
645,785
240,000
-
70,408
4,076,209 3,445,193
645,785
240,000
-
70,408
Employee Incentive Plan - Options
KMP
Name
Balance
at 1 July
2021
Granted during the
year
Exercised during the
year
No.
550,000
No.
-
Value1
$
-
No.
-
Value2
$
-
Balance at
30 June
2022
Unvested
at 30 June
2022
No.
550,000
No.
237,500
300,000
100,000
134,408
50,000
11,250
350,000
225,000
-
250,000
273,271
-
-
250,000
-
J.R Melki
P.L Manley
N Gunn
1
2
This represents the total value of the options over the life of the options from grant date using a
Black-Scholes valuation method. The amount is allocated against remuneration over the vesting
period (total allocation vests in 4 equal tranches from the 1st anniversary of the issue date).
Value equals the difference between the exercise price and the closing share price per the ASX on
the date of exercise/forfeiture multiplied by the number of options.
15
39
Remuneration Report
GENETIC SIGNATURES LIMITED
ABN: 30 095 913 205
DIRECTORS’ REPORT
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
5 EMPLOYMENT AGREEMENTS
Service contracts have been entered into by the Company with key management personnel,
describing the components and amounts of remuneration applicable on their initial appointment,
including terms and performance criteria for performance-related cash bonuses. These contracts do
not fix the amount of remuneration increases from year to year. Remuneration levels are reviewed
generally each year by the Remuneration Committee to align with changes in job responsibilities and
market salary expectations. All contracts are for an ongoing period.
All contracts can be terminated by either party with 3 months’ notice (or one month in the case of
Michael Aicher), subject to termination payments as described below:
John Melki
Director & Chief Executive Officer
Contract term:
Base salary:
Termination payments:
Ongoing, commenced November 2014
$370,800, exclusive of superannuation, to be reviewed annually by
the Remuneration Committee.
Payment on early termination by the Group, other than for gross
misconduct, equal to the base salary plus superannuation
entitlements for three months.
Michael Aicher
Executive Director – US Operations
Contract term:
Base salary:
Termination payments:
Peter Manley
Chief Financial Officer
Contract term:
Base salary:
Termination payments:
Ongoing, commenced April 2014
$US120,000, to be reviewed annually by the Remuneration
Committee.
No payment on early termination. Contract is terminable by either
party on one months’ notice.
Ongoing, commenced October 2018
$239,615 exclusive of superannuation, to be reviewed annually by
the Remuneration Committee.
Payment on early termination by the Group, other than for gross
misconduct, equal to the base salary plus superannuation for three
months.
This concludes the remuneration report which has been audited.
40
Genetic Signatures Limited – Annual Report 2022
16
Financial Report
Consolidated Statement of
Profit or Loss and Other
Comprehensive Income
GENETIC SIGNATURES LIMITED
ABN: 30 095 913 205
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
Note
Consolidated
2022
$’000s
Revenue
Other income
Cost of materials used
Freight on materials & finished goods
Employee benefits expense
Directors’ and consultancy fees
Depreciation and amortisation expenses
Finance costs
Scientific consumables & clinical trials
Travel and marketing
Other expenses
Profit before income tax
Income tax benefit
2
4
5
6
Profit attributable to members of the entity
Other comprehensive income
Items that maybe reclassified subsequently to
profit or loss:
Foreign Currency translation of foreign operations
Total comprehensive income for the year, net of
tax
Earnings (loss) per share
Basic Earnings per share to ordinary equity
holders of the company
Diluted Earnings per share to ordinary equity
holders of the company
29
29
35,421
217
(10,465)
(1,524)
(11,471)
(477)
(1,616)
(19)
(3,133)
(505)
(3,365)
3,063
-
3,063
220
3,283
2022
cents
2.14
2.11
2021
$’000s
28,284
435
(8,486)
(1,318)
(10,024)
(399)
(1,425)
(36)
(2,761)
(262)
(2,252)
1,756
-
1,756
20
1,776
2021
cents
1.23
1.21
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income
should be read in conjunction with the accompanying notes
42
Genetic Signatures Limited – Annual Report 2022
18
Financial Report
Consolidated Statement
of Financial Position
GENETIC SIGNATURES LIMITED
ABN: 30 095 913 205
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2022
Note
Consolidated
2022
$’000s
2021
$’000s
Assets
Current Assets
Cash and cash equivalents
Trade and other receivables
Inventory
Total Current Assets
Non-Current Assets
Property, plant and equipment
Intangible assets
Right of use assets - leases
Total Non-Current Assets
Total Assets
Liabilities
Current Liabilities
Trade and other payables
Lease liabilities
Provisions
Total Current Liabilities
Non-Current Liabilities
Lease liabilities
Provisions
Total Non-Current Liabilities
Total Liabilities
Net Assets
Equity
Issued capital
Reserves
Accumulated losses
Total Equity
7
8
9
10
11
12
13
12
14
12
14
15
16
36,897
4,133
10,202
51,232
6,733
1,646
43
8,422
30,121
5,373
12,134
47,628
5,659
371
389
6,419
59,654
54,047
3,665
33
1,107
4,805
1
46
47
3,352
334
938
4,624
65
18
83
4,852
4,707
54,802
49,340
84,428
5,469
(35,095)
84,164
3,334
(38,158)
54,802
49,340
The above Consolidated statement of financial position should be read in conjunction with the
accompanying notes
19
43
Financial Report
Consolidated Statement of
Changes in Equity
GENETIC SIGNATURES LIMITED
ABN: 30 095 913 205
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
Consolidated
Issued
Capital
$’000s
Share based
payments
reserve
$’000s
Foreign
currency
translation
reserve
$’000s
Accumulated
losses
$’000s
Total
$’000s
Balance at 1 July 2020
84,013
1,985
(155)
(39,914)
45,929
Profit attributable to members of
the entity
Other comprehensive income
Total comprehensive income for
the year
Transactions with owners in
their capacity as owners:
Share issues on conversion of
options, net of costs (note 15)
Forfeiture of share-based
payments (note 16)
Share-based payments
(note 16)
-
-
-
151
-
-
Balance at 30 June 2021
84,164
Profit attributable to members of
the entity
Other comprehensive income
Total comprehensive income for
the year
Transactions with owners in
their capacity as owners:
Share issues on conversion of
options, net of costs (note 15)
Forfeiture of share-based
payments (note 16)
Share-based payments
(note 16)
-
-
-
264
-
-
Balance at 30 June 2022
84,428
-
-
-
-
(235)
1,719
3,469
-
-
-
-
(245)
2,160
5,384
-
20
20
-
-
-
1,756
-
1,756
20
1,756
1,776
-
-
-
151
(235)
1,719
(135)
(38,158)
49,340
-
220
220
-
-
-
3,063
-
3,063
220
3,063
3,283
-
-
-
264
(245)
2,160
85
(35,095)
54,802
The above consolidated statement of changes in equity should be read in conjunction with the
accompanying notes
44
Genetic Signatures Limited – Annual Report 2022
20
Financial Report
Consolidated Statement
of Cash Flows
GENETIC SIGNATURES LIMITED
ABN: 30 095 913 205
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
Note
Consolidated
2022
$’000s
2021
$’000s
Cash flows from operating activities
Receipts from customers (inclusive of GST)
Payments to suppliers and employees (inclusive
of GST)
Interest and other income received
Lease costs (interest)
Research and development concession received
Net cash provided by operating activities
12
Cash flows from investing activities
Purchase of plant and equipment
Purchase of intangible assets
Net cash used in investing activities
Cash flows from financing activities
Proceeds from exercise of options
Share issue costs
Lease costs (principal)
Net cash used in financing activities
Net increase/(decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of
financial year
Exchange differences on cash and cash
equivalents
39,405
(29,706)
30,031
(28,680)
126
(19)
-
25(b)
9,806
11
15
15
(1,714)
(1,275)
(2,989)
273
(9)
(365)
(101)
6,716
326
(36)
2,554
4,195
(4,653)
(326)
(4,979)
163
(12)
(341)
(190)
(974)
30,121
31,176
60
(81)
30,121
Cash and equivalents at end of financial year 25(a)
36,897
The above consolidated statement of cash flows should be read in conjunction with the
accompanying notes
21
45
Financial Report
GENETIC SIGNATURES LIMITED
ABN: 30 095 913 205
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
Note 1: Statement of Significant Accounting policies
The principal accounting policies adopted in the preparation of the financial statements are set out
below. These policies have been consistently applied to all the years presented, unless otherwise
stated.
Basis of preparation
These general-purpose financial statements have been prepared in accordance with Australian
Accounting Standards and Interpretations issued by the Australian Accounting Standards Board
('AASB') and the Corporations Act 2001, as appropriate for for-profit oriented entities. These
financial statements also comply with International Financial Reporting Standards as issued by
the International Accounting Standards Board ('IASB'). The Company has adopted all the
amendments to Australian Accounting Standards issued by the Australian Accounting Standards
Board, which are relevant to and effective for the Company’s financial statements for the financial
year beginning 1 July 2021. There was no material impact on the financial statements from the
adoption of these new accounting standards.
The financial report has been prepared on an accrual basis and is based on historical costs,
modified, where applicable by the measurement at fair value of selected non-current assets,
financial assets and financial liabilities.
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 company'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(v).
(a) Basis of Consolidation
The consolidated financial statements comprise the financial statements of Genetic
Signatures Limited and its subsidiaries, Genetic Signatures US Ltd and Genetic Signatures
UK Ltd. Subsidiaries are entities (including structured entities) over which the group has
control. The group has control over an entity when the group is exposed to, or has rights to,
variable returns from its involvement with the entity, and has the ability to use its power to
affect those returns. Subsidiaries are consolidated from the date on which control is
transferred to the group and are deconsolidated from the date that control ceases.
All intercompany balances and transactions, including unrealised profits arising from
intragroup transactions have been eliminated. Unrealised losses are also eliminated unless
the transaction provides evidence of the impairment of the asset transferred.
(b)
Income tax
income
The
tax expenses/(benefit)
expense/(benefit) and deferred tax expenses/(benefit).
for
the year comprise current
income
tax
Current income tax expenses charged to the profit or loss is the tax payable on taxable
income calculated using applicable income tax rates enacted, or substantially enacted, as
at the end of the reporting period. Current tax liabilities/assets are therefore measured at
the amounts expected to be paid to /recovered from the relevant taxation authority.
Deferred income tax expense reflects movements in deferred tax asset and deferred tax
liability balances during the year as well as unused tax losses.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply
to the period when the asset is realised or the liability settled, based on tax rates enacted
or substantively enacted at reporting date. Their measurement also reflects the manner in
which management expects to recover or settle the carrying amount of the related asset or
liability.
Deferred tax assets relating to temporary differences and unused tax losses are recognised
only to the extent that it is probable that future taxable profit will be available against which
the benefits of the deferred tax asset can be utilised.
46
Genetic Signatures Limited – Annual Report 2022
22
Notes to the Financial Statements for the
financial year ended 30 June 2022
GENETIC SIGNATURES LIMITED
ABN: 30 095 913 205
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
Note 1: Statement of Significant Accounting Policies (continued)
Where temporary differences exist in relation to investment in subsidiaries, branches,
associates, and joint ventures, deferred tax assets and liabilities are not recognised where
the timing of the reversal of the temporary difference can be controlled and it is not probable
that the reversal will occur in the foreseeable future
Current tax assets and liabilities are offset where a legally enforceable right of set-off exists
and it is intended that net settlement or simultaneous realisation and settlement of the
respective asset and liability will occur. Deferred tax assets and liabilities are offset where
a legally enforceable right of set-off exists, the deferred tax assets and liabilities relate to
income taxes levied by the same taxation authority on either the same taxable entity or
different taxable entities where it is intended that net settlement or simultaneous realisation
and settlement of the respective asset and liability will occur in future periods in which
significant amounts of deferred tax assets or liabilities are expected to be recovered or
settled.
(c) Property, plant and equipment
Each class of plant and equipment is carried at cost or fair value as indicated less, where
applicable, any accumulated depreciation and impairment losses.
Plant and equipment are measured on the cost basis less depreciation and impairment
losses.
The carrying amount of plant and equipment is reviewed annually by directors of the
company to ensure it is not in excess of the recoverable amount from those assets. The
recoverable amount is assessed on the basis of the expected net cash flows which will be
received from the assets employed and subsequent to disposal. The expected net cash
flows have been discounted to their present values in determining recoverable amounts.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate
asset, as appropriate, only when it is probable that future economic benefits associated with
the item will flow to the company and the cost of the item can be measured reliably. All other
repairs and maintenance expenses are charged to the income statements during the
financial period in which are incurred.
Depreciation
The depreciable amount of all fixed assets is depreciated on a straight-line basis over their
estimated useful lives to the company commencing from the time the asset is held ready
for use.
The depreciation rates used for each class of depreciable asset are:
Class of fixed asset
Plant and equipment
Depreciation rate
1-10 years
The assets residual values and useful lives are reviewed and adjusted if appropriate at each
reporting date.
Gains and losses on disposal are determined by comparing the net proceeds with the
carrying amount prior to disposal. Any gains or losses are included in the statement of profit
or loss and comprehensive income.
23
47
Financial Report
GENETIC SIGNATURES LIMITED
ABN: 30 095 913 205
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
Note 1: Statement of Significant Accounting Policies (continued)
(d) Goods and Services Tax
Revenues, expenses and assets are recognised net of GST, except where the amount of
GST incurred is not recoverable from the Australian Taxation Office (ATO).
Receivables and payables are stated inclusive of the amount of GST receivable or payable.
The net amount of GST recoverable from, or payable to, the ATO is included within other
receivables or payables in the statements of financial position.
Cash flows are presented on a gross basis, except for the GST component of investing and
financing activities which are recoverable from, or payable to ATO are disclosed as
operating cash flows.
(e)
Financial instruments
Classification
The Group classifies financial assets as either:
(cid:149) Those to be measured subsequently at fair value; or
(cid:149) Those to be measured at amortised cost.
The classification depends on the entity’s business model for managing the financial assets
and the contractual terms of the cash flows. For assets measured at fair value, gains and
losses will be either recorded in profit & loss or other comprehensive income.
Recognition and derecognition
Purchases and sales of financial assets are recognised on the date the Group commits to
purchase or sell the asset. Financial assets are derecognised when the rights to receive
cash flows from the financial assets have expired or have been transferred and the Group
has transferred substantially all the risks and rewards of ownership.
Measurement
At initial recognition, the group measures a financial asset at its fair value plus, in the case
of a financial asset not at fair value through profit or loss (FVPL), transaction costs that are
directly attributable to the acquisition of the financial asset. Transaction costs of financial
assets carried at FVPL are expensed in profit or loss.
(i)
Loans and receivables
Loans and receivables are assets held for collection of contractual cashflows where those
cashflows represent payment of principal and interest measured at amortised cost.
Loans and receivables are included in current assets, except for those which are not
expected to mature within 12 months after the end of the reporting period, which will be
classified as non-current assets.
Any interest income from these financial assets is included in finance income using the
effective interest rate method.
(ii)
Financial liabilities
Non-derivative financial liabilities (excluding financial guarantees) are subsequently
measured at amortised cost.
48
Genetic Signatures Limited – Annual Report 2022
24
Notes to the Financial Statements for the
financial year ended 30 June 2022
GENETIC SIGNATURES LIMITED
ABN: 30 095 913 205
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
Note 1: Statement of Significant Accounting Policies (continued)
(iii) Equity instruments
The group subsequently measures all equity investments at fair value. Changes in the fair
value of financial assets are recognised in other gains/(losses) in the statement of profit or
loss as applicable. Impairment losses (and reversal of impairment losses) on equity
investments are not reported separately from other changes in fair value.
The Group does not currently hold any equity investments.
Fair Value
Fair value is determined based on current bid prices for all quoted investments. Valuation
techniques are applied to determine the fair value for all unlisted securities, including recent
arm’s length transactions, reference to similar instruments and option pricing models.
Impairment
At the end of each reporting period, the Group assesses whether there is objective evidence
that a financial instrument has been impaired. The impairment methodology applied
depends on whether there has been a significant increase in credit risk.
The Group applies the AASB9 simplified approach to measuring expected credit losses
which uses a lifetime expected loss allowance for all trade receivables and contract assets.
These assumptions include recent sales, historical collection rates and forward-looking
information, including consideration for the potential impact of the ongoing COVID-19
pandemic.
(f)
Revenue recognition
Revenue from the sale of goods is recognised when control of the goods has passed to the
buyer which usually occurs on delivery. This revenue is classified into 3 categories, being:
Sale of Goods – Reagents and Consumables
The Group manufactures and sells test kits for use in pathology laboratories. It also
purchases disposable items for resale that are used by the pathology laboratories in
conjunction with the test kits. Sales are recognised when control of the products has
transferred, being the point in time when the products are delivered to the customer’s
specified location, the amount of revenue can be measured reliably, and it is probable that
payment will be received by the Group.
Sale of Goods – Equipment and rental
The consolidated entity provides equipment to customers if required which may be as an
outright sale or be a placement under a lease arrangement. Where the equipment is sold
the sale is recognised when control of the products has transferred, being the point in time
when the products are delivered to the customer’s specified location, the amount of revenue
can be measured reliably, and it is probable that payment will be received by the Group. In
the event the Group enters a lease, an assessment will be made as to the classification of
that lease. A lease will be classified as a finance lease if it transfers substantially all of the
risks and rewards associated with the underlying asset. Otherwise, the lease will be
classified as an operating lease. Where the lease meets the definition of a finance lease
revenue is recognised by applying the interest rate within the lease arrangement to the
future lease payments and the estimated value of any unguaranteed end of term earnings
or secondary income. Operating lease income will be recognised as income over time per
the terms of the agreement with the customer, which may be as a cost per test or a periodic
rental value.
25
49
Financial Report
GENETIC SIGNATURES LIMITED
ABN: 30 095 913 205
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
Note 1: Statement of Significant Accounting Policies (continued)
Sale of Goods – Service
If a customer has purchased or is using Group owned equipment there may be a service
charge levied to maintain the equipment. Revenue is recognised over time in the period that
the service is rendered.
Interest revenue is recognised on a proportional basis taking into account the interest rates
applicable to the financial assets.
All revenue is stated net of the amount of goods and services tax (GST).
Grant revenue is recognised when it is received or when the right to receive payment is
established.
(g)
Trade and other payables
Accounts payable represent the principal amounts outstanding at the reporting date plus,
where applicable, any accrued interest.
(h)
Impairment
At each reporting date, the company assesses whether there is any indication that an asset
may be impaired. The assessment will include the consideration of external and internal
sources of information including dividends from subsidiaries, associates or jointly controlled
entities deemed to be out of pre-acquisition profits. If such an indication exists, an
impairment test is carried out on the asset by comparing the recoverable amount of the
asset, being the higher of the asset's fair value less costs to sell and value in use, to the
asset's carrying value. Any excess of the asset's carrying value over its recoverable amount
is expensed to the statement of profit or loss and other comprehensive income.
Where it is not possible to estimate the recoverable amount of an individual asset, the
company estimates the recoverable amount of the cash-generating unit to which the asset
belongs.
(i)
Cash and cash equivalents
For the purposes of the statement of cash flows, cash includes cash on hand and at call
deposits with banks or financial institutions and net of bank overdrafts.
(j)
Inventories
Inventories include raw materials, work in progress and all items available for resale,
including equipment (defined in 1(f)) and goods in transit.
Inventories are measured at the lower of cost and net realisable value. Cost comprises
direct materials, direct labour and an appropriate portion of variable and fixed overheads,
the latter being allocated on the basis of normal operation capacity.
Net realisable value is the estimated selling price in the ordinary course of business less
the estimated costs of completion and the estimated costs necessary to make the sale.
(k)
Trade and other receivables
Trade receivables are initially recognized at fair value and subsequently measured at
amortised cost using the effective interest method, less any provision for impairment. Trade
receivables are generally due for settlement within 30-60 days.
The Group applies the AASB9 simplified approach to measuring expected credit losses
which uses a lifetime expected loss allowance for all trade receivables and contract assets.
Trade receivables and contract assets have shared credit risk characteristics and, as such,
the expected loss rates for trade receivables are a reasonable approximation of loss rates
for contract assets. Losses incurred in the last 3 years represent less than 1% of receivables
and are immaterial. The Group has made a provision for impairment against an invoice that
is in dispute and is considered to be at reasonable risk.
Other receivables are recognized at amortised cost, less any provision for impairment.
50
Genetic Signatures Limited – Annual Report 2022
26
Notes to the Financial Statements for the
financial year ended 30 June 2022
GENETIC SIGNATURES LIMITED
ABN: 30 095 913 205
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
Note 1: Statement of Significant Accounting Policies (continued)
(l)
Finance costs
Finance costs attributable to qualifying assets are capitalised as part of the asset. All other
finance costs are expensed in the period in which they are incurred, including interest in
respect of lease liabilities.
(m) Employee benefits
Provision is made for the company’s liability for employee benefits arising from services
rendered by employees to the reporting date. Employee benefits that are expected to be
settled within one year have been measured at the amounts expected to be paid when the
liability is settled, plus related on-costs. Employee benefits payable later than one year have
been measured at the present value of the estimated future cash outflows to be made for
those benefits.
(n) Provisions
Provisions are recognised when the entity has a legal or constructive obligation, as a result
of past events, for which it is probable that an outflow of economic benefits will result, and
that outflow can be reliably measured.
(o)
Leases
The Group leases business premises (offices and laboratories) and office equipment.
Rental contracts are typically for a fixed period of 12 months to 60 months and may include
extension options. From 1 July 2019 leases are recognised as a right of use asset and a
corresponding liability at the date at which the lease is available for use by the Group.
Assets and liabilities are measured on a present value basis.
Lease payments are discounted using the interest rate implicit in the lease. Where a rate
cannot be readily determined from the lease (generally the case) then the lessee’s
incremental borrowing rate will be used, being the rate the lessee would have to pay to
borrow the funds to obtain the equivalent asset. As the Group does not have any borrowings
the incremental borrowing rate has been determined using a build-up approach whereby
the risk-free rate is adjusted for credit risk, considering factors such as term, country, and
currency.
The Group has no variable lease payments in its leases, nor do any of the leases have an
option to extend the term.
Right of use assets are depreciated on a straight-line basis over the term of the lease.
Lease payments for operating leases of low value items or for a period of less than 12
months, where substantially all the risks and benefits remain with the lessor, are charged
as expense in the period in which they are incurred. Refer to note 12 for further information
pertaining to the Group’s right of use assets and liabilities.
(p) Share-based payments
Equity-settled share-based payments with employees and others providing similar services
are measured at fair value of the equity instrument at the grant date. Further details on how
the fair value of equity-settled share-based transactions has been determined can be found
in note 18.
The fair value determined at the grant date of the equity-settled share-based payments is
expensed on a straight-line basis over the vesting period, based on the Company’s estimate
of equity instruments that will eventually vest.
(q) Parent entity financial information
The financial information for the parent entity, Genetic Signatures Limited, disclosed in note
26, has been prepared on the same basis as the consolidated financial statements.
27
51
Financial Report
GENETIC SIGNATURES LIMITED
ABN: 30 095 913 205
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
Note 1: Statement of Significant Accounting Policies (continued)
(r)
Earnings per share
Basic earnings per share are calculated by dividing:
(cid:149)
the profit attributable to owners of the Company, excluding any costs of servicing
equity other than ordinary shares; and
(cid:149)
by the weighted average number of ordinary shares outstanding during the financial
year.
Diluted earnings per share adjusts the figures used in the determination of basic earnings
per share to take into account dilutive potential ordinary shares.
(s)
Foreign currency translation
The financial statements are presented in Australian dollars, which is Genetic Signatures
Limited's functional and presentation currency.
Foreign currency transactions
Foreign currency transactions are translated into Australian dollars using the exchange
rates prevailing at the dates of the transactions. Foreign exchange gains and losses
resulting from the settlement of such transactions and from the translation at financial
year-end exchange rates of monetary assets and liabilities denominated in foreign
currencies are recognised in profit or loss.
Foreign operations
The assets and liabilities of foreign operations are translated into Australian dollars using
the exchange rates at the reporting date. The revenues and expenses of foreign
operations are translated into Australian dollars using the average exchange rates, which
approximate the rates at the dates of the transactions, for the period. All resulting foreign
exchange differences are recognised in other comprehensive income through the foreign
currency reserve in equity.
(t)
Intangibles
Intangibles comprise costs incurred in developing or acquiring new knowledge that will
contribute future financial benefits and are therefore capitalised. This currently comprises
software development which can be in the form of software, licences or systems; and
costs associated with development of a new Instrument Development that will be unique
to the PCR testing market. They include external direct costs of materials and service.
Development costs include only those costs directly attributable to the development phase
and are only recognised following completion of technical feasibility, where the Group has
the intention and ability to use the asset.
No amortisation of intangibles are recorded until the development work is in a form that
future economic benefit may be derived. As the instrument development is not yet
advanced to this stage, no amortisation has been recorded to date.
(u) New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or
amended but are not yet mandatory, have not been early adopted by the consolidated
entity for the annual reporting period ended 30 June 2022. The consolidated entity has
not yet assessed the impact of these new or amended Accounting Standards and
Interpretations.
(v) Critical Accounting Estimates and Judgments
The Directors evaluate estimates and judgements incorporated into the financial report
based on historical knowledge and best available current information. Estimates assume
a reasonable expectation of future events and are based on current trends and economic
data, obtained both externally and within the company.
52
Genetic Signatures Limited – Annual Report 2022
28
Notes to the Financial Statements for the
financial year ended 30 June 2022
GENETIC SIGNATURES LIMITED
ABN: 30 095 913 205
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
Note 1: Statement of Significant Accounting Policies (continued)
Key estimates – valuation of employee share option plan shares
At each reporting date, the entity revises its estimate of the number of rights that are
expected to become exercisable. The employee benefit expense recognised each period
takes into account the most recent estimate. The impact of the revision to the original
estimates, is recognised in profit or loss with a corresponding adjustment to equity. The
fair value is measured at grant date and recognised over the period during which the
employee becomes unconditionally entitled to the restricted shares or options.
Key judgements - capitalisation of development costs
Development costs are capitalised when it is probable that the project will be a success
considering its commercial and technical feasibility, the Group is able to use or sell the
assets, the Group has sufficient resources, and intent to complete the development and
its costs can be measured reliably.
Judgements - research and development claim
Judgement is required in determining the value of the research and development claim.
There are certain transactions and calculations undertake during the ordinary course of
business for which the ultimate tax determination may be subject to change. The company
calculates its research and development claim based on the company’s understanding of
the tax law. Where the final outcome of these matters is different from the amounts that
were initially recorded, such differences will impact the tax payable in the year in which
such determination is made.
Judgements – provisioning for inventory
Inventories generally have expiry dates and the Group provides for product that have
expired or are close to expiry. Expiry dates for raw material are no longer relevant once
the materials are used in production. At this stage the relevant expiry date is that
applicable to the resultant intermediate or finished product.
Various factors affect the assessment of recoverability of the carrying value of inventory,
including regulatory approvals and future demand for the Group’s products. These factors
are taken into consideration in determining the appropriate level of provisioning for
inventory.
Judgements - COVID-19 pandemic
Judgement has been exercised in considering the impacts that the Coronavirus
(COVID-19) pandemic has had, or may have, on the Group based on known information.
This consideration extends to the nature of the products and services offered, customers,
supply chain, staffing and geographic regions in which the Group operates. Other than as
addressed in specific notes, there does not currently appear to be either any significant
impact upon the financial statements or any significant uncertainties with respect to events
or conditions which may impact the consolidated entity unfavourably as at the reporting
date or subsequently as a result of the Coronavirus (COVID-19) pandemic.
Judgements – availability of prior tax losses
Judgement has been exercised with regards the availability of carry forward tax losses.
The Group must apply the Same Business Test which examines the business that was
carried on during the year to losses are being applied compared to the business carried
on immediately before the failure of the Continuity of Ownership Test (“COT”), requiring
the same business to be carried on between both times.
Consideration by independent experts assessed that, upon a review of the historic
business of Genetic Signatures, the identity of its core technology, strategic direction and
essential characteristics of the business activities remain similar during the whole test
period. As such past tax losses have been applied to taxable income in FY2022.
29
53
Financial Report
GENETIC SIGNATURES LIMITED
ABN: 30 095 913 205
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
Note 2: Revenue
Disaggregation of revenue
The Group derives revenue from the transfer of goods and services over time and at a point in
time in the following major product and geographical regions
Consolidated - 2022
Revenue lines
Reagents & consumables
Equipment sales & rental
Service contracts
Timing of revenue recognition
Goods transferred at a point in time
Services transferred over time
Consolidated - 2021
Revenue lines
Reagents & consumables
Equipment sales & rental
Service contracts
Timing of revenue recognition
Goods transferred at a point in time
Services transferred over time
Asia
Pacific
$’000s
EMEA
$’000s
Americas
$’000s
Total
$’000s
30,714
742
127
3,319
420
99
-
-
-
34,033
1,162
226
31,583
3,838
-
35,421
31,092
491
3,646
192
-
-
34,738
683
31,583
3,838
-
35,421
Asia
Pacific
$’000s
EMEA
$’000s
Americas
$’000s
Total
$’000s
21,743
483
19
3,589
837
-
1,435
178
-
26,767
1,498
19
22,245
4,426
1,613
28,284
21,922
323
4,385
41
1,579
34
27,886
398
22,245
4,426
1,613
28,284
Note 3: Financial Reporting Segments
The Group is operated under one business segment which was the research and
commercialisation of identifying individual genetic signatures to diagnose diseases and
disabilities.
Major customers
During the year ended 30 June 2022 there were two customers (2021: two) that each
contributed over 10% of the consolidated entity’s external revenue.
Geographic locations
Asia Pacific
The Group’s head office and manufacturing operation is based in Sydney, Australia. 89% of the
revenue was generated within the Australian entity.
54
Genetic Signatures Limited – Annual Report 2022
30
Notes to the Financial Statements for the
financial year ended 30 June 2022
GENETIC SIGNATURES LIMITED
ABN: 30 095 913 205
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
Note 3: Financial Reporting Segments (continued)
EMEA
This business comprises Eastern and Western Europe, Middle East including Israel, and Africa.
The Group is represented by employees in UK and Germany.
Americas
The Group’s North American business includes the United States and Canada. The Group
proposes to sell products in this region and is currently having its products evaluated by the
US FDA. Operations are currently based in California, USA.
Consolidated - 2022
Asia
Pacific
$’000s
EMEA
$’000s
Americas
$’000s
Total
Segment revenue
Intersegment sales
Total sales from external customers
Other revenue
Segment revenue from external customers
34,798
(3,215)
31,583
-
31,583
4,194
(356)
3,838
-
3,838
135
(135)
-
-
-
39,127
(3,706)
35,421
-
35,421
Segment result from external customers
7,434
375
(2,788)
5,021
Unallocated revenue less unallocated expenses
Profit before income tax
Income tax
Net profit after tax
Consolidated - 2021
(1,958)
3,063
-
3,063
Segment revenue
Intersegment sales
Total sales from external customers
Other revenue
Segment revenue from external customers
25,397
(3,152)
22,245
-
22,245
4,447
(21)
4,426
-
4,426
1,679
(66)
1,613
-
1,613
31,523
(3,239)
28,284
-
28,284
Segment result from external customers
9,948
1,541
(457)
3,032
Unallocated revenue less unallocated expenses
Profit before income tax
Income tax
Net profit after tax
Consolidated – 2022
Segment assets
Segment liabilities
Consolidated – 2021
Segment assets
Segment liabilities
(1,276)
1,756
-
1,756
Total
$’000
Asia
EMEA
Americas
Pacific
$’000
70,952
(5,383)
$’000s
$’000s
4,374
(5,882)
2,265
(10,796)
(17,937)
17,209
59,654
(4,852)
Inter
company
$’000s
59,838
(4,482)
946
(925)
3,056
(7,755)
(9,793)
8,455
54,047
(4,707)
31
55
Financial Report
GENETIC SIGNATURES LIMITED
ABN: 30 095 913 205
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
Consolidated
2022
$’000s
2021
$’000s
Note 4: Other income
Interest income
Export Market Development Grant
Other income
Total other income
132
75
10
217
206
100
129
435
Note 5: Expenses
Finance costs
Interest charges
Superannuation expense
Defined contribution superannuation expense (including
non-executive Directors)
Write-down of inventory to net realisable value*
Items included in other expenses include:
Patents – lodgement and maintenance
Foreign exchange loss
Consolidated
2022
$’000s
2021
$’000s
19
580
-
196
92
36
466
270
143
71
* Write-down of inventory to net realisable value: included in Cost of materials used in the
statement of profit or loss and other comprehensive income. Refer to Note 9 for details of
inventories.
Note 6: Income tax
Numerical reconciliation of income tax benefit to prima
facie tax payable
Prima facie income tax (benefit) on profit/(loss) from ordinary
activities (2022: AU 26% US 21% UK 19%; 2021: 26% US
21% UK 19%)
Add/(less)tax effect of:
- non-deductible items
- tax losses not brought to account
- tax losses applied
- research and development tax credit
- temporary differences not brought to account
Consolidated
2022
$’000s
2021
$’000s
1,229
715
2,946
946
(673)
(3,781)
(667)
2,459
329
-
(2,902)
(601)
Income tax benefit attributable to entity
-
-
56
Genetic Signatures Limited – Annual Report 2022
32
Notes to the Financial Statements for the
financial year ended 30 June 2022
GENETIC SIGNATURES LIMITED
ABN: 30 095 913 205
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
Note 6: Income tax (Continued)
The consolidated entity has recorded profit during the year ended 30 June 2022. The consolidated
entity currently has carried forward losses of $4,309,000 from prior years in respect to its Australian
operations, approximately US$5,978,000 in respect to its North American operations, and
GBP936,000 from its UK operations. The utilisation of these carried forward losses is conditional on
the consolidated entity meeting the conditions for deductibility imposed by the law in the period
in which the consolidated entity derives sufficient taxable income in order to utilise these losses. For
the year ended 30 June 2022, management has reviewed the deductibility of these losses in
comparison to the estimated taxable income derived by the consolidated entity and are confident
that sufficient losses are available to offset the taxable income for the financial year ended 30 June
2022. Whilst the consolidated entity has continued to trade positively due to the COVID-19 induced
demand, it is currently not known with sufficient certainty how the consolidated entity’s trade will
transpire for the FY23 period and beyond. As a consequence, the consolidated entity has elected
not to recognise any deferred tax assets or carried forward income tax losses until the probability of
recoupment is sufficiently certain.
Note 7: Cash and cash equivalents
Cash at bank and on hand
Cash on deposit (maturity < 12 months)
Consolidated
2022
$’000s
11,897
25,000
36,897
2021
$’000s
5,121
25,000
30,121
Cash at bank and on hand bears floating interest rates. The interest rate relating to cash and cash
equivalents for the year was between nil% and 0.4% (2021: between nil% and 0.4%).
Genetics Signatures Limited has an unused credit card facility with the bank at the year-end of
$57,000 (2021: $57,000).
Note 8: Trade and other receivables
Consolidated
Current
Trade debtors (a)
Provision for expected credit losses
Other receivables (b)
2022
$’000s
3,900
(258)
3,642
491
4,133
2021
$’000s
5,106
(143)
4,963
410
5,373
a.
Past due but not impaired and impairment of receivables
Customers with balances past due amount to $1,112,200 as at 30 June 2022 ($810,000 as at
30 June 2021). Among which the company has recognised a provision for expected credit
losses of $258,000 (2021: $143,000) in profit or loss in respect of impairment of receivables
for the year ended 30 June 2022.
b. Other receivables
These amounts relate to prepayments and accrued interest. None of these receivables are
impaired or past due but not impaired.
c.
Fair value and credit risk
Due to the short-term nature of these receivables, their carrying value is assumed to
approximate their fair value. Information about the Company’s exposure to fair value and credit
risk in relation to trade and other receivables is provided in note 27.
33
57
Financial Report
GENETIC SIGNATURES LIMITED
ABN: 30 095 913 205
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
Note 9: Inventory
Raw materials
Work in progress
Finished goods
Stock in transit
Provision for obsolescence
Note 10: Property, plant and equipment
Plant and equipment:
At cost
Less: accumulated depreciation
Movement in plant and equipment is as follows:
Cost at 1 July 2020
Additions
Disposals
Cost at 30 June 2021
Accumulated depreciation 1 July 2020
Depreciation expense
Disposal of assets
Accumulated depreciation 30 June 2021
Carrying amount 30 June 2021
Cost at 1 July 2021
Additions
Disposals
FX difference
Cost at 30 June 2022
Accumulated depreciation 1 July 2021
Depreciation expense
Disposal of assets
Accumulated depreciation 30 June 2022
Carrying amount 30 June 2022
Consolidated
2022
$’000s
6,245
305
3,865
94
(307)
10,202
Consolidated
2022
$’000s
10,942
(4,209)
6,733
Plant &
equipment
$’000s
5,662
4,653
(775)
9,540
(2,987)
(1,025)
131
(3,881)
5,659
9,540
2,310
(967)
59
10,942
(3,880)
(1,289)
960
(4,209)
6,733
2021
$’000s
6,681
737
4,963
23
(270)
12,134
2021
$’000s
9,539
(3,880)
5,659
Total
$’000s
5,662
4,653
(775)
9,540
(2,987)
(1,025)
131
(3,881)
5,659
9,540
2,310
(967)
59
10,942
(3,880)
(1,289)
960
(4,209)
6,733
58
Genetic Signatures Limited – Annual Report 2022
34
Notes to the Financial Statements for the
financial year ended 30 June 2022
GENETIC SIGNATURES LIMITED
ABN: 30 095 913 205
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
Note 11: Intangibles
At cost
Less: accumulated amortisation
Movement in intangibles is as follows:
Cost at 1 July 2020
Additions
Disposals
Cost at 30 June 2021
Accumulated depreciation 1 July 2020
Depreciation expense
Accumulated depreciation 30 June 2021
Carrying amount 30 June 2021
Cost at 1 July 2021
Additions
Disposals
Cost at 30 June 2022
Accumulated depreciation 1 July 2021
Depreciation expense
Accumulated depreciation 30 June 2022
Carrying amount 30 June 2022
2022
$’000s
1,858
(212)
1,646
Software
Instrument
Development
$’000s
266
317
-
583
(166)
(46)
(212)
371
583
297
-
880
(212)
-
(212)
668
$’000s
-
-
-
-
-
-
-
-
-
978
-
978
-
-
-
978
2021
$’000s
583
(212)
371
Total
$’000s
266
317
-
583
(166)
(46)
(212)
371
583
1,275
-
1,858
(212)
-
(212)
1,646
35
59
Financial Report
GENETIC SIGNATURES LIMITED
ABN: 30 095 913 205
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
Note 12: Right of use assets - leases
(i)
Amounts recognised in the statement of financial position
Right of use assets
Buildings
Equipment
Lease liabilities
Current
Non-current
(ii)
Amounts recognised in the statement of profit or loss
Amortisation charge of right of use assets
Buildings
Equipment
Interest expense (included in finance costs)
Expenses related to short-term leases (included in other
expenses)
Note 13: Trade and other payables
Current – unsecured
Trade creditors
Other creditors
Note 14: Provisions
Current
Employee benefits
Non-Current
Employee benefits
Consolidated
2022
$’000s
2021
$’000s
41
2
43
33
1
34
344
2
346
19
264
385
4
389
334
65
399
344
2
346
36
189
Consolidated
2022
$’000s
2021
$’000s
3,417
248
3,665
2,755
597
3,352
Consolidated
2022
$’000s
2021
$’000s
1,107
46
938
18
60
Genetic Signatures Limited – Annual Report 2022
36
Notes to the Financial Statements for the
financial year ended 30 June 2022
GENETIC SIGNATURES LIMITED
ABN: 30 095 913 205
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
Note 15: Issued capital
Opening balance at 1 July 2020:
Movement in ordinary share capital
Exercise of employee share options
Less: Share issue costs
Number
$’000s
142,610,996
84,013
296,250
163
(12)
Closing balance at 30 June 2021
142,907,246
84,164
Movement in ordinary share capital
Exercise of employee share options
Less: Share issue costs
478,750
273
(9)
Closing balance as at 30 June 2022
143,385,996
84,428
All fully paid ordinary shares and founder shares have equal voting rights, of one vote per share,
and subject to the prior rights of preference shares, have equal rights to receive dividends in
proportion to the number of ordinary shares held.
Note 16: Reserves
Share based payments reserve
Balance 1 July
Transferred to accumulated losses upon forfeiture
Share-based payment expenses
Balance 30 June
Consolidated
2022
$’000s
3,469
(245)
2,160
5,384
2021
$’000s
1,985
(235)
1,719
3,469
The share-based payments reserve is used to recognise the fair value of equity benefits
provided to employees and Directors as part of their compensation.
Foreign currency translation reserve
Balance 1 July
Arising from translation of foreign subsidiaries
Balance 30 June
Consolidated
2022
$’000s
(135)
220
85
2021
$’000s
(155)
20
(135)
The foreign currency translation reserve is used to recognise the exchange difference on the
translation of the US and UK subsidiaries into AUD.
37
61
Financial Report
GENETIC SIGNATURES LIMITED
ABN: 30 095 913 205
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
Note 17: Related party transactions
Related parties
(a) The company's main related parties are as follows:
Key management personnel:
Any persons having authority and responsibility for planning, directing and controlling the
activities of the entity, directly or indirectly, including any director (whether executive or
otherwise) of that entity, are considered key management personnel.
Key Management personnel include:
Nickolaos Samaras – Director
John R Melki – Director and Chief Executive Officer
Michael A Aicher – Director
Anthony J Radford – Director
Neil Gunn – Director
Caroline Waldron – Director (appointed May 2022)
Peter L Manley – Chief Financial Officer/Company Secretary
For details of disclosures relating to key management personnel, refer to Note 19.
(b) Transactions with related parties:
There were no related party transactions during the year other than transactions with key
management personnel as part of their remuneration.
Note 18: Share-based payments
Options were issued during the year, pursuant to the Equity Incentive Plan. Fair values at grant
date are determined using a Black-Scholes Option Pricing Model that takes into account the
exercise price, the term of the option, the share price at the grant date, the expected volatility of
the underlying share, and risk-free interest rate for the term of the option. The model inputs for
options granted during the year ended 30 June 2022 are noted below:
Grant
date
Expiry
date
Vesting
period
(mths)
Exercise
price
Sep 21
Sep 36
Nov 21
Nov 36
Nov 21
Nov 36
Jun 21
Jun 24
48
48
48
12
Share
price at
issue
date
$1.56
Fair
value at
issue
date
$1.34
$1.44
$1.44
$1.31
$1.09
$1.39
$1.31
$1.10
$1.51
$1.16
$0.40
Est.
volatility
Expected
dividend
yield
Average
risk-free
rate
74%
69%
69%
60%
-
-
-
-
1.12%
1.81%
1.81%
2.89%
Historical 12-month volatility has been the basis for determining expected share price volatility as
it is assumed that this is indicative of future movements.
62
Genetic Signatures Limited – Annual Report 2022
38
Notes to the Financial Statements for the
financial year ended 30 June 2022
GENETIC SIGNATURES LIMITED
ABN: 30 095 913 205
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
Employee Share Ownership Plan Shares
Set out below are the summaries of restricted shares and options granted under the plan:
2022
Grant date
Options
October 2016
November 2016
October 2017
October 2017
August 2018
November 2018
February 2019
May 2019
November 2019
March 2020
September 2020
November 2020
April 2021
September 2021
November 2021
November 2021
June 2022
Total
Weighted average option exercise price
Exercise
price
Balance at
beginning of the
year
Granted during the
year
Converted during
the year
Expired/
Forfeited during
the year
Balance at the end
of the year
Number
Vested and
convertible at
year end
$0.52
$0.52
$0.34
$0.38
$0.53
$0.53
$0.84
$1.10
$0.98
$1.13
$2.30
$2.30
$1.56
$1.44
$1.44
$1.39
$1.51
181,000
100,000
325,000
250,000
550,000
200,000
150,000
200,000
809,000
100,000
1,230,000
250,000
15,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,565,000
250,000
100,000
36,000
-
-
(52,500)
(250,000)
(50,000)
-
-
(50,000)
(51,250)
(25,000)
-
-
-
-
-
-
-
-
-
-
-
(7,500)
-
-
-
(20,000)
(25,000)
(30,000)
-
(15,000)
(45,000)
-
-
-
181,000
100,000
272,500
-
492,500
200,000
150,000
150,000
737,750
50,000
1,200,000
250,000
-
1,520,000
250,000
100,000
36,000
181,000
100,000
272,500
-
340,000
150,000
112,500
100,000
345,250
25,000
300,000
62,500
-
-
-
-
-
4,360,000
1,951,000
(478,750)
(142,500)
5,689,750
1,988,750
$1.25
$1.44
$0.57
$1.47
$1.36
12.7
$0.96
Weighted average remaining contractual life of options (years)
GENETIC SIGNATURES LIMITED
ABN: 30 095 913 205
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
39
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
2021
Grant date
Options
October 2016
November 2016
October 2017
October 2017
August 2018
November 2018
February 2019
May 2019
November 2019
March 2020
September 2020
November 2020
February 2021
April 2021
Total
Weighted average option exercise price
Exercise
price
Balance at
beginning of the
year
Granted during the
year
Converted during
the year
Expired/
Forfeited during
the year
Balance at the end
of the year
Number
Vested and
convertible at
year end
$0.52
$0.52
$0.34
$0.38
$0.53
$0.53
$0.84
$1.10
$0.98
$1.13
$2.30
$2.30
$1.88
$1.56
301,250
100,000
387,500
250,000
625,000
200,000
150,000
200,000
865,000
200,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,350,000
250,000
100,000
15,000
(120,250)
-
(62,500)
-
(75,000)
-
-
-
(26,000)
(12,500)
-
-
-
-
-
-
-
-
-
-
(30,000)
(87,500)
(120,000)
(100,000)
-
181,000
100,000
325,000
250,000
550,000
200,000
150,000
200,000
809,000
100,000
1,230,000
250,000
-
15,000
181,000
100,000
218,750
187,500
230,000
100,000
75,000
100,000
190,250
25,000
-
-
-
-
3,278,750
1,715,000
(296,250)
(337,500)
4,360,000
1,407,500
Weighted average remaining contractual life of options (years)
$0.70
$2.27
$0.55
$1.75
$1.25
12.96
$0.61
40
63
Financial Report
GENETIC SIGNATURES LIMITED
ABN: 30 095 913 205
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
Note 19: Key management personnel disclosures
Short-term employee benefits
Non-monetary benefits
Short term incentive
Post-employment benefits
Long-term benefits
Termination benefits
Share based payments
2022
$
1,037,467
-
65,535
70,352
48,864
-
377,564
1,599,782
2021
$
915,281
1,964
87,490
63,949
47,441
-
266,348
1,382,473
Key management personnel remuneration has been included in the Remuneration Report section
of the Directors’ Report.
Note 20: Commitments
There were no material capital commitments at the reporting date (2021: Nil).
Note 21: Events Subsequent to Reporting Date
The impact of the Coronavirus (COVID-19) pandemic is ongoing and while it has been financially
positive for the consolidated entity through 30 June 2022, it is not practicable to estimate the
potential impact, positive or negative, after the reporting date. The situation is rapidly developing
and is dependent on measures imposed by authorities in countries where Genetic Signatures
supplies test kits, such as government support for continued testing, travel restrictions and any
other economic stimulus that may be provided.
A contract to supply EasyScreen™ Enteric Diagnostic Kits to Public Health Wales was won during
FY2022. During initiation of these sites’ implementation issues have caused interruptions to the
rollout, which was subject to a stringent timetable due to the northern hemisphere flu season. At
this stage the contract will not proceed as planned. The customer has reinforced their desire to
roll out the Genetic Signatures solution due to its superior targets and workflow, but these
imperatives on timing have led to a review of the contract. While we are advised that we should
resubmit for the tender as it will not likely be possible to implement until calendar 2023 at
the earliest. As such there is a high likelihood that no revenue will be recognised in the
coming financial year from this customer. No revenue has been recorded from this contract in
FY2022.
Other than the above, there has not arisen in the interval between the end of the financial year
and the date of this report any other item, transaction or event of a material and unusual nature
likely in the opinion of the directors of the Company to affect significantly the operations of the
Company, the results of those operations or the state of affairs of the Company in future
financial years.
Note 22: Subsidiaries
a) Parent entity
Genetic Signatures Limited
b) Controlled entities
Genetic Signatures USA Ltd
Genetic Signatures UK Ltd
Country
of incorporation
Equity holding in
subsidiaries
2022
%
2021
%
Australia
USA
UK
41
100%
100%
100%
100%
64
Genetic Signatures Limited – Annual Report 2022
Notes to the Financial Statements for the
financial year ended 30 June 2022
GENETIC SIGNATURES LIMITED
ABN: 30 095 913 205
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
Note 23: Auditors’ remuneration
BDO
Audit and review of financial statements
Other non-audit services
Tax compliance services
Total non-audit services
Total audit and non-audit services
Note 24: Contingent liabilities
Consolidated
2022
$
100,637
43,180
43,180
143,817
2021
$
80,482
27,345
27,345
107,827
The company does not have any material contingent liabilities at year-end (2021: nil).
Note 25: Cash Flow Information
(a) Reconciliation of Cash
Consolidated
2022
$’000s
2021
$’000s
Cash at the end of the financial year as shown in the
statement of cash flows is reconciled to the related items
in the statement of financial position as follows:
Cash on hand and at bank
36,897
30,121
(b) Reconciliation of Profit after Income Tax to net
Cash inflows/(outflows) from Operations
Profit after income tax
Non cash flows included within profit/(loss)
Depreciation
Share based payments expenses
Loss/(profit) on disposal of assets
Inventory provision for obsolescence
Bad debts provision
Amortisation of leases
Transfers between inventory and fixed assets
Changes in operating assets and liabilities:
Decrease/(increase) in trade and other receivables
Decrease in government grant receivable
Decrease/(increase) in inventories
Increase in provisions
Increase in payables
Net cash inflow/(outflow) from operating activities
3,063
1,270
1,915
60
37
115
346
(683)
1,240
-
1,932
198
313
9,806
1,756
1,079
1,483
(13)
270
143
346
759
(293)
2,554
(5,152)
279
984
4,195
42
65
Financial Report
GENETIC SIGNATURES LIMITED
ABN: 30 095 913 205
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
Note 26: Parent Entity Financial Information
(a) Summary financial information:
Assets
Current Assets
Cash and cash equivalents
Trade and other receivables
Inventory
Total Current Assets
Non-Current Assets
Plant and equipment
Right of use assets
Total Non-Current Assets
Total Assets
Liabilities
Current Liabilities
Trade and other payables
Provisions
Leases
Total Current Liabilities
Non-Current Liabilities
Leases
Provisions
Total Non-Current Liabilities
Total Liabilities
Net Assets
Equity
Issued capital
Reserves
Accumulated losses
Total Equity
Profit/(loss) for the year
Other comprehensive income/(loss)
Total comprehensive income/(loss) for the year
2022
$’000s
2021
$’000s
36,348
10,163
9,424
55,935
4,207
43
4,250
29,394
7,990
11,054
48,438
4,994
389
5,383
60,185
53,821
4,284
1,019
33
5,336
1
46
47
3,202
862
334
4,398
65
18
83
5,383
4,481
54,802
49,340
84,428
5,383
(35,009)
54,802
84,164
3,469
(38,293)
49,340
3,284
-
3,284
(1,826)
-
(1,826)
(b) Summary financial information:
The Parent entity did not have any contingent liabilities as at 30 June 2022 or 30 June 2021.
(c) Significant accounting policies:
The accounting policies of the parent entity are consistent with those of the consolidated entity,
as disclosed in note 1, except for the following:
(cid:149)
Investments in subsidiaries are accounted for at cost, less any impairment, in the parent
entity.
66
Genetic Signatures Limited – Annual Report 2022
43
Notes to the Financial Statements for the
financial year ended 30 June 2022
GENETIC SIGNATURES LIMITED
ABN: 30 095 913 205
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
Note 27: Financial risk management
The company's financial instruments consist mainly of deposits with banks, accounts receivable
and payable, and lease liabilities. The totals for each category of financial instruments,
measured in accordance with AASB 9 as detailed in the accounting policies to these financial
statements, are shown at their net fair value.
Net Fair Value
The fair values of financial assets and financial liabilities are presented in the following table and
can be compared to their carrying values as presented in the statement of financial position. Fair
values are those amounts at which an asset could be exchanged, or a liability settled, between
knowledgeable, willing parties at arm's length transaction.
Fair values derived may be based on information that is estimated or subject to judgment, where
changes in assumptions may have material impact on the amounts estimated.
Financial assets
Cash and cash equivalents
Trade and other receivables
Total Financial Assets
Financial Liabilities
Trade creditors
Other creditors
Lease liabilities
Total Financial Liabilities
Net Carrying
Value 2022
Net Fair
Value 2022
Net Carrying
Value 2021
$’000s
36,897
4,133
41,030
$’000s
36,897
4,133
41,030
$’000s
30,121
5,373
35,494
Net Fair
Value 2021
$’000s
30,121
5,373
35,494
3,031
633
34
3,698
3,031
633
34
3,698
2,755
597
399
3,751
2,755
597
399
3,751
The values disclosed in the above table have been determined based on the following
methodologies:
Cash and cash equivalents, trade and other receivables and trade and other payables are short-
term instruments in nature whose carrying value is equivalent to fair value. The fair value of lease
liabilities is estimated by discounting the remaining contractual maturities at the current market
interest rate that is available for similar financial liabilities.
Interest Rate Risk
The company's main interest rate risk arises from the cash balance which is invested at variable
rates.
Sensitivity
Significant changes in market interest rates may have an effect on the Company's income and
operating cash flows. The Company manages its cash flow interest rate risk by placing excess
funds in term deposits.
Based on the cash held at reporting date, the sensitivity to a 1% increase or decrease in interest
rates would increase/(decrease) after tax profit by $369,000 (2021 profit: $301,000).
44
67
Financial Report
GENETIC SIGNATURES LIMITED
ABN: 30 095 913 205
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
Credit risk
Credit risk arises from cash and cash equivalents and deposits with banks and financial
institutions, as well as credit exposure to domestic and international customers, including
outstanding receivables and committed transactions. The Company has policies in place to
ensure that sales of products and services are made to customers with an appropriate credit
history. The majority of customers have long term relationships with the Company and sales are
secured with supply contracts. Sales are secured by letters of credit when deemed appropriate.
The Company has policies that limit the maximum amount of credit exposure to any one
financial institution.
The credit quality of financial assets that are neither past due nor impaired can be assessed by
reference to historical information about counterparty default rates. The table below summarises
the assets which are subject to credit risk.
Financial assets
Cash and cash equivalents
Trade and other receivables
Total Financial Assets
Consolidated
2022
$’000s
36,897
4,133
41,030
2021
$’000s
30,121
5,373
35,494
The group applies the AASB 9 simplified approach to measuring expected credit losses which
uses a lifetime expected loss allowance for trade receivables. Further detail is explained in
Note 1(k).
Liquidity Risk
Liquidity Risk arises from the possibility that the company might encounter difficulty in settling its
debts or otherwise meeting its obligations related to financial liabilities. The company manages
this risk through the following mechanisms:
-
preparing forward-looking cash flow analysis in relation to its operational, development
and financing activities;
obtaining funding from a variety of sources including equity issues;
only investing surplus cash with major financial institutions.
-
-
68
Genetic Signatures Limited – Annual Report 2022
45
Notes to the Financial Statements for the
financial year ended 30 June 2022
GENETIC SIGNATURES LIMITED
ABN: 30 095 913 205
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
Financial liability maturity analysis (undiscounted payments)
2022
Weighted
average
interest rate
%
Within 1
Year
$’000s
1 to 5
Years
$’000s
Total
contractual
cash flows
Total
Carrying
amount
$’000s
$’000s
Financial liabilities due for payment
Trade and other payables
-
Lease liabilities
4.5%
Total expected outflows
3,665
33
3,698
-
1
1
3,665
34
3,699
3,665
34
3,699
2021
Weighted
average
interest rate
Within 1
Year
$’000s
1 to 5
Years
$’000s
Total
contractual
cash flows
$’000s
Total
Carrying
amount
$’000s
Financial liabilities due for payment
Trade and other payables
-
Lease liabilities
4.5%
Total expected outflows
3,352
340
3,692
-
70
70
3,352
410
3,762
3,352
399
3,751
Note 28: Capital Risk Management
The company’s objective when managing capital is to safeguard the ability to continue as a
going concern so that they can fund future growth and provide returns to shareholders and
benefits to other stakeholders and to maintain an optimal capital structure.
Management effectively manages the company’s capital by assessing the company’s financial
risks and adjusting its capital structure in response to changes in these risks and the market.
There were no externally imposed capital requirements during the year.
46
69
Financial Report
Notes to the Financial Statements for the
financial year ended 30 June 2022
GENETIC SIGNATURES LIMITED
ABN: 30 095 913 205
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
Note 29. Earnings per share
Profit after income tax
Profit after income tax attributable to the owners of Genetic
Signatures Limited
Weighted average number of ordinary shares used in calculating
basic earnings per share
Adjustments for calculation of diluted earnings per share:
Options over ordinary shares
Weighted average number of ordinary shares used in calculating
diluted earnings per share
Basic profit per share
Diluted profit per share
Consolidated
2022
$’000s
2021
$’000s
3,063
1,756
3,063
1,756
Number
Number
143,102,251
142,801,623
2,333,750
2,867,918
145,436,001
145,669,541
Cents
Cents
2.14
2.11
1.23
1.21
70
Genetic Signatures Limited – Annual Report 2022
47
Directors’ Declaration
DIRECTORS' DECLARATION
In the directors' opinion:
●
●
●
●
the attached financial statements and notes thereto comply with the Corporations Act 2001, the Australian
Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting
requirements;
the attached financial statements and notes thereto comply with International Financial Reporting Standards
as issued by the International Accounting Standards Board as described in note 1 to the financial statements;
the attached financial statements and notes thereto give a true and fair view of the consolidated entity’s
financial position as at 30 June 2022 and of its performance for the financial year ended on that date; and
there are reasonable grounds to believe that the company will be able to pay its debts as and when they
become due and payable.
The directors have been given the declaration required by section 295A of the Corporation Act 2001.
Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act
2001.
On behalf of the directors
John Melki
Director
Sydney, 31 August 2022
71
Auditor’s Declaration
Tel: +61 2 9251 4100
Fax: +61 2 9240 9821
www.bdo.com.au
Level 11, 1 Margaret St
Sydney NSW 2000
Australia
DECLARATION OF INDEPENDENCE BY MARTIN COYLE TO THE DIRECTORS OF GENETIC SIGNATURES
LIMITED
DECLARATION OF INDEPENDENCE BY GARETH FEW TO THE DIRECTORS OF GENETIC SIGNATURES
LIMITED
As lead auditor of Genetic Signatures Limited for the year ended 30 June 2020, I declare that, to the
best of my knowledge and belief, there have been:
As lead auditor of Genetic Signatures Limited for the year ended 30 June 2022, I declare that, to the
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
best of my knowledge and belief, there have been:
relation to the audit; and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
This declaration is in respect of Genetic Signatures Limited and the entities it controlled during the
2. No contraventions of any applicable code of professional conduct in relation to the audit.
period.
This declaration is in respect of Genetic Signatures Limited and the entities it controlled during the
period.
Martin Coyle
Director
BDO Audit Pty Ltd
Sydney, 28 August 2020
Gareth Few
Director
BDO Audit Pty Ltd
Sydney, 31 August 2022
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050
110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited
by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional
Standards Legislation.
72
Genetic Signatures Limited – Annual Report 2022
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members
of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent
member firms. Liability limited by a scheme approved under Professional Standards Legislation.
Independent Auditor’s Report
INDEPENDENT AUDITOR'S REPORT
Tel: +61 2 9251 4100
Fax: +61 2 9240 9821
www.bdo.com.au
Level 11, 1 Margaret St
Sydney NSW 2000
Australia
To the members of Genetic Signatures Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Genetic Signatures Limited (the Company) and its subsidiaries
(the Group), which comprises the consolidated statement of financial position as at 30 June 2022, the
DECLARATION OF INDEPENDENCE BY MARTIN COYLE TO THE DIRECTORS OF GENETIC SIGNATURES
LIMITED
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
of changes in equity and the consolidated statement of cash flows for the year then ended, and notes
to the financial report, including a summary of significant accounting policies and the directors’
As lead auditor of Genetic Signatures Limited for the year ended 30 June 2020, I declare that, to the
declaration.
best of my knowledge and belief, there have been:
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
Act 2001, including:
relation to the audit; and
(i)
2. No contraventions of any applicable code of professional conduct in relation to the audit.
Giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its
financial performance for the year ended on that date; and
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
This declaration is in respect of Genetic Signatures Limited and the entities it controlled during the
(ii)
period.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
Report section of our report. We are independent of the Group in accordance with the Corporations
Martin Coyle
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
Director
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
BDO Audit Pty Ltd
ethical responsibilities in accordance with the Code.
Sydney, 28 August 2020
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
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.
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of
BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member
firms. Liability limited by a scheme approved under Professional Standards Legislation.
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members
of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent
member firms. Liability limited by a scheme approved under Professional Standards Legislation.
73
Independent Auditor’s Report
Tel: +61 2 9251 4100
Fax: +61 2 9240 9821
www.bdo.com.au
Level 11, 1 Margaret St
Sydney NSW 2000
Australia
Existence and valuation of inventory
Key audit matter
How the matter was addressed in our audit
As disclosed in Note 9, the Group held
Our audit procedures for addressing this key audit matter included, but
inventory with a carrying value of
were not limited to, the following:
$10,202,000 as at 30 June 2022 which
represented approximately 17% of the
DECLARATION OF INDEPENDENCE BY MARTIN COYLE TO THE DIRECTORS OF GENETIC SIGNATURES
Group’s total assets.
LIMITED
Inventory valuation and existence was
compared these to the underlying inventory records.
around the year-end and performed detailed test counts and
Evaluated the assumptions applied by management in assessing
Observed the inventory count procedures at key locations
considered a key audit matter due to
potential obsolescence for near-expiry and slow-moving
the significant value of these assets in
As lead auditor of Genetic Signatures Limited for the year ended 30 June 2020, I declare that, to the
inventory by comparing to recent sales experience and the
the Consolidated Statement of
best of my knowledge and belief, there have been:
Financial Position, the various
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
locations that inventory was held, in
relation to the audit; and
Analysed inventory turnover by product group in comparison to
addition to the key estimates and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
judgements applied by management in
prior periods and to expectations.
ageing of inventory.
Reviewed management’s processes and estimates for
•
assessing the net realisable value
calculating the overhead and labour costs included within
This declaration is in respect of Genetic Signatures Limited and the entities it controlled during the
(‘NRV’) of inventory.
period.
manufactured finished goods inventory.
•
•
•
•
Performed various analytical procedures in relation to
inventory including an analysis of monthly gross margins and
inventory turnover, comparing to prior years and expectations.
Martin Coyle
Director
BDO Audit Pty Ltd
Revenue recognition
Sydney, 28 August 2020
•
Tested a sample of inventory items on hand to initial supplier
invoices and subsequent sales invoices to ascertain whether
inventory was being correctly recognised at the lower of cost
and NRV.
Key audit matter
How the matter was addressed in our audit
As disclosed in Note 2, the Group
To determine whether revenue was appropriately accounted for and
recognised revenue of $35,421,000
disclosed within the financial statements, we performed, amongst
during the financial year ended 30
others, the following audit procedures:
June 2022 (2021: $28,284,000).
Due to the significant increase in
revenue during the year and the
overall significance of revenue to the
Group as a key performance indicator,
we considered this area to be a key
audit matter.
•
•
Critically evaluated the revenue recognition policies for all
material revenue sources including reviewing any new sales
agreements entered during the year to identify any variable
consideration / multiple performance obligation arrangements
to ensure revenue was recognised in accordance with
accounting standard AASB 15 Revenue from Contracts with
Customers.
Tested the operating effectiveness of key internal controls
surrounding the existence and occurrence of revenues.
74
Genetic Signatures Limited – Annual Report 2022
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members
of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent
member firms. Liability limited by a scheme approved under Professional Standards Legislation.
Tel: +61 2 9251 4100
Fax: +61 2 9240 9821
www.bdo.com.au
Level 11, 1 Margaret St
Sydney NSW 2000
Australia
Key audit matter
How the matter was addressed in our audit
•
Performed substantive analytical procedures over the key
revenue streams, comparing against expectations developed
from discussions with management and supporting
information.
DECLARATION OF INDEPENDENCE BY MARTIN COYLE TO THE DIRECTORS OF GENETIC SIGNATURES
LIMITED
throughout the financial year by tracing sales invoices to
supporting sales documentation, shipping documentation and
•
Substantively testing a sample of revenue transactions
cash receipts.
As lead auditor of Genetic Signatures Limited for the year ended 30 June 2020, I declare that, to the
transactions around the year-end had been recorded in the
best of my knowledge and belief, there have been:
Performed detailed cut-off testing to ensure that revenue
•
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
correct period.
relation to the audit; and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
Other information
The directors are responsible for the other information. The other information comprises the
This declaration is in respect of Genetic Signatures Limited and the entities it controlled during the
information in the Group’s annual report for the year ended 30 June 2022 but does not include the
period.
financial report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
Martin Coyle
and, in doing so, consider whether the other information is materially inconsistent with the financial
Director
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.
BDO Audit Pty Ltd
Responsibilities of the directors for the Financial Report
Sydney, 28 August 2020
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
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members
of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent
member firms. Liability limited by a scheme approved under Professional Standards Legislation.
75
Independent Auditor’s Report
Tel: +61 2 9251 4100
Fax: +61 2 9240 9821
www.bdo.com.au
Level 11, 1 Margaret St
Sydney NSW 2000
Australia
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.
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website (http://www.auasb.gov.au/Home.aspx) at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
DECLARATION OF INDEPENDENCE BY MARTIN COYLE TO THE DIRECTORS OF GENETIC SIGNATURES
This description forms part of our auditor’s report.
LIMITED
Report on the Remuneration Report
As lead auditor of Genetic Signatures Limited for the year ended 30 June 2020, I declare that, to the
Opinion on the Remuneration Report
best of my knowledge and belief, there have been:
We have audited the Remuneration Report included in the director’s report under the heading
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
‘Remuneration Report’ for the year ended 30 June 2022.
relation to the audit; and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
In our opinion, the Remuneration Report of Genetic Signatures Limited, for the year ended 30 June
2022, complies with section 300A of the Corporations Act 2001.
This declaration is in respect of Genetic Signatures Limited and the entities it controlled during the
Responsibilities
period.
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.
Martin Coyle
Director
BDO Audit Pty Ltd
BDO Audit Pty Ltd
Sydney, 28 August 2020
Gareth Few
Director
Sydney, 31 August 2022
76
Genetic Signatures Limited – Annual Report 2022
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members
of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent
member firms. Liability limited by a scheme approved under Professional Standards Legislation.
Analysis of Holdings
Genetic Signatures Limited
Analysis of Holdings as at 12 September 2022
Additional Informaton Required Under ASX Listing Rules
The additional information required by the Australian Securities Exchange (ASX) and not shown
elsewhere in this report is set out below. The information is current at 12 September 2022.
Issued Capital
As at 12 September 2022 the Company had 143,385,996 fully paid ordinary shares on issue.
Distribution of Equity Securities
Analysis of numbers of equity security holders for GSS fully paid ordinary shares by size of holding:
Holdings Ranges
Holders
1-1,000
1,001-5,000
5,001-10,000
10,001-100,000
100,001-9,999,999,999
Totals
587
650
268
462
113
2,080
Total Units
296,928
1,849,439
2,139,080
16,828,115
122,272,434
143,385,996
%
0.210
1.290
1.490
11.740
85.280
100.000
Unmarketable parcel of shares
The number of individual shareholders holding less than a marketable parcel of shares
was 273 (a total of 60,300 shares held by 273 shareholders).
550 fully paid ordinary shares comprise a marketable parcel at GSS' closing share price
of $0.91 on 12 September 2022.
77
Shareholder Information
Equity Security Holders
The names of the twenty largest shareholders of quoted securities are listed below:
Shareholder
ASIA UNION INVESTMENTS PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
NATIONAL NOMINEES LIMITED
CITICORP NOMINEES PTY LIMITED
UBS NOMINEES PTY LTD
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
CAPITAL CONCERNS PTY LIMITED
BNP PARIBAS NOMS PTY LTD
BRAHAM CONSOLIDATED PTY LTD
CS FOURTH NOMINEES PTY LIMITED
BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
BRISPOT NOMINEES PTY LTD
MR JOHN ROBERT MELKI
S LOADER PTY LTD
IDOLLINK PTY LTD
QUICKINVEST PTY LTD
NEWECONOMY COM AU NOMINEES PTY LIMITED <900 ACCOUNT>
BUTTONWOOD NOMINEES PTY LTD
BRAHAM INVESTMENTS PTY LTD
JULEYU PTY LTD
Total Securities of Top 20 Holdings
Total of Securities
Substantial Holders
Shareholder
ASIA UNION INVESTMENTS PTY LTD
PERENNIAL VALUE MANAGEMENT LIMITED
FIL LIMITED
78
Genetic Signatures Limited – Annual Report 2022
Balance as at
12 September 2022
37,500,000
16,204,233
11,054,458
9,260,540
3,695,421
3,526,397
2,530,000
2,023,466
1,828,463
1,417,342
1,341,038
1,337,118
1,096,000
1,050,680
1,029,890
1,020,000
1,019,588
872,189
871,517
863,213
99,541,553
143,385,996
Balance as at
12 September 2022
37,500,000
21,462,703
9,876,864
%
26.15%
11.30%
7.71%
6.46%
2.58%
2.46%
1.76%
1.41%
1.28%
0.99%
0.94%
0.93%
0.76%
0.73%
0.72%
0.71%
0.71%
0.61%
0.61%
0.60%
69.42%
%
26.15%
14.97%
6.89%
Contact Us
www.geneticsignatures.com
Australasia and Asia Pacific (Head Office)
A: 7 Eliza Street Newtown, NSW, 2042 Australia
E: apac@geneticsignatures.com
P: +61 2 9870 7580
Europe, Middle East and Africa
E: europe@geneticsignatures.com
P (UK): +44 020 3997 3623
P (Germany): +49 61 30 5544999
Americas
E: americas@geneticsignatures.com
P: +1 800 687 4118