Annual Report
2024
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
Chair's Letter ................................. 4
Annual Review – CEO Report ........ 6
US Market Opens .......................... 8
Incoming CEO, Allison Rossiter ...12
Financial Report 2024 ................. 14
Shareholder Information ............ 74
Company Directory....................... 76
Notes............................................. 78
Genetic Signatures Limited – Annual Report 2024
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3
Dear Shareholders, it is a pleasure to present
Genetic Signatures’ annual report for the financial
year ending 30 June 2024.
As Chairman of Genetic Signatures, it is with great
pleasure that I present Genetic Signatures' 2024
Annual Report. As this will be my final Chair's
letter, I find myself reflecting not only on the past
financial year but also on my 14 years of tenure
as Chair. It has been an incredible journey and I
am immensely proud of what we have achieved
together. Our collective achievements are a
testament to the unwavering dedication and hard
work of our entire team, as well as the steadfast
support from you, our valued shareholders.
Over the past 23 years, Genetic Signatures has
undergone a transformative journey. When I
first assumed the role of Chair, our vision was to
revolutionise molecular diagnostics for infectious
diseases and improve patient outcomes using
our proprietary 3base® technology. Today, that
vision has become a reality. Our innovative
solutions enable healthcare providers to
diagnose infectious diseases more quickly and
more accurately, resulting in timely medical
interventions, improved patient outcomes, and
the containment of disease spread within the
community. These tangible impacts on public
health are at the heart of our mission and what
drives our relentless commitment to excellence.
I am always proud of the incredible dedication
and resilience of the staff at Genetic Signatures,
and the significance of this has been particularly
evident over the last 12 months. The journey
to achieve FDA clearance for our EasyScreen™
Gastrointestinal Parasite Detection Kit and
automated workflow is a notable milestone in
the Company’s history, and one that would not
have been possible without the team’s passion,
hard work and innovative spirit. Their unwavering
commitment has been critical to the success of
our Company, and for this, I will be forever grateful.
The FDA clearance of Genetic Signatures
first product in the United States (US) market
provided a positive end to a year with a number
of challenges. The temporary withdrawal of
our leading respiratory diagnostic solution in
Australia due to inconsistent detection of low
titre influenza B samples, came at the height of
Australia’s flu season and consequently, resulted
in disappointing revenue for FY2024.
Once again, through an innovative approach and
team dedication, we managed to rapidly redesign
the product to address this detection issue. As
a result, we were able to get the product back
on the market in April 2024. This enabled the
delivery of solid sales in the fourth quarter of the
financial year, just as the Australian respiratory
season commenced.
Chair's
Letter
Genetic Signatures Limited – Annual Report 2024
4
To navigate the challenges of a temporary
decline in our sales revenue, the Board made the
strategic decision to pause further investment
in the development on the Next Generation
Instrument. While this was a difficult choice, it
allowed us to reallocate and focus our resources
to our core diagnostic offerings in order to ensure
the Company's long-term stability in a rapidly
changing and competitive market. In line with
this approach, the Board made a strategic
decision to cease further clinical development
of a new respiratory product to support a
FDA 510(k) submission for the US market.
Multiple factors contributed to this decision
including the increased competition from other
recently-cleared molecular respiratory panels,
which was accompanied by an overall decline in
molecular testing for respiratory infections in the
region. Whilst it is always difficult to halt invested
activities, these decisions were required given
the challenging circumstances.
In April 2024, we bid farewell to Dr. John Melki,
whose two-decade-long tenure with
Genetic Signatures saw him rise from a
Senior Scientist to the role of CEO of the
Company. His scientific acumen and executive
leadership were pivotal in transforming the
Company from a research-focused entity to a
commercial company. The Board and I extend our
deepest gratitude to Dr. Melki for his invaluable
contributions and leadership.
In addition, on behalf of the Board, I sincerely
thank my fellow Board member, Dr. Neil Gunn,
for stepping into the Interim CEO role at a
crucial time for the Company, and for providing
invaluable leadership and guidance during
this time. His dedication and expertise have
been instrumental in navigating through this
challenging period of change.
Looking ahead, we are excited to welcome
Allison Rossiter as our new CEO, who will
commence this role in September 2024.
Ms Rossiter brings a wealth of experience from
her distinguished career at Roche Diagnostics.
Her commercial expertise and strategic vision
will support Genetic Signatures’ next phase of
commercial growth. We are confident that under
her leadership, Genetic Signatures will continue
to thrive and expand to become recognised as a
significant player in the global diagnostics market.
The future of Genetic Signatures is brighter than
ever, and our team are primed for significant
success. We are committed to maintaining
our momentum and delivering value to our
shareholders. Our strategic initiatives are
focussed towards establishing Genetic Signatures
as a key, long-term player in the global molecular
diagnostics industry. As we continue to innovate
and expand, we look forward to sharing our
progress and achievements with you.
It has been a great privilege to serve as Chair,
guiding Genetic Signatures through significant
milestones, including our ASX listing in 2015.
Now, the company is in a strong position to
prosper. I am confident that, under the leadership
of our dedicated team and Board members,
Genetic Signatures will continue to thrive.
Finally, I want to express my heartfelt thanks
to all our shareholders. The recent capital raise
rounds are a testament to the strong support and
confidence you have in our vision. This support
has been crucial in positioning us for this next
successful chapter. Your unwavering support
and dedication have been the cornerstone of our
success. Together, we have built a solid foundation
and are poised for an even brighter future.
We look forward to an exciting and prosperous
year ahead.
Dr Nick Samaras
Chair
5
2024 Annual
Review
CEO Report
It is a pleasure and a privilege to address you as
Interim CEO in this year’s 2024 Annual Report;
a role I have held since the end of April 2024
following Dr. John Melki’s decision to step down
as CEO after 21 years of leadership. On behalf of
the Board, I would like to thank Dr. Melki for his
outstanding service to the Company over the past
two decades. While I will continue to serve as a
Director, my role as Interim CEO will transition
to Genetic Signatures’ incoming CEO, Allison
Rossiter, in late September 2024.
My time as Interim CEO has been incredibly
beneficial and has provided me with many
invaluable insights into the Company and
its culture. Through leveraging my previous
experience of working in some of the world’s
leading diagnostics companies, I have had the
opportunity to directly support the team in
embracing change. This has included reevaluating
our business strategy, continuing to drive
critical thought within the Company, and the
development of a clear roadmap for the business
which focuses on leveraging the unique benefits
of Genetic Signatures’ 3base® technology. Being
involved in day to day operations has allowed me
to truly appreciate the passion and dedication
of the Genetic Signatures team. This has been
inspiring and has clearly highlighted the strength
of the Company’s culture which has been the
bedrock of its successes to date.
I was fortunate to be in the role of Interim CEO
at the time that Genetic Signatures achieved
the most significant milestone in the Company’s
history; namely securing US FDA 510(k) clearance
for our EasyScreen™ Gastrointestinal Parasite
Detection Kit and associated GS1 automated
workflow. As the US is the world’s largest
diagnostic market, our announcement of
achieving this historical milestone on the
4th of June 2024 was particularly significant
for the Company, and its shareholders. Being
so closely involved in the final phase of this
process was a career highlight for me as I saw
firsthand how much it meant to the team.
Our EasyScreen™ Gastrointestinal Parasite
Detection Kit is an innovative diagnostic solution
which addresses a significant unmet market
opportunity in the US. By using a highly sensitive
molecular approach to identify the eight most
common and clinically relevant gastrointestinal
parasites in a single test, our unique product is
relevant for detection of approximately 90% of
gastrointestinal infections. In addition, our test
provides significant benefits to the laboratory
workflow by delivering results in approximately
5 hours. This solution reduces the need for
time consuming, labour intensive traditional
microscopic examinations that are of variable
sensitivity, and are slow to provide a result.
For FY2025, our primary focus is to build strong
and sustainable commercial momentum for
our EasyScreen™ Gastrointestinal Parasite
Detection Kit in the US. While the FDA review
process was underway, Genetic Signatures was
able to install instruments and train users at nine
customer-experience sites. These sites included
representatives from Genetic Signatures’ key
target customer groups. Many of these sites
are expected to convert to commercial sales on
completion of their internal approval processes.
We have put in place a highly experienced and
motivated sales and support teams in the US who
are also well-advanced in their efforts to establish
commercial sales at other sites. In view of this, we
are expecting to deliver solid revenue growth in
2025 and beyond.
While we are very excited for what the future holds
for Genetic Signatures, we also acknowledge
that there were a number of challenges we
faced during FY2024. Most significantly was the
reduction in sales revenue due to inconsistent
influenza B detection in a small proportion of
low viral load samples in Australia. In view of
this, Genetic Signatures temporarily suspended
supply of its EasyScreen™ Respiratory Pathogen
Detection Kit. Unfortunately, this issue arose
during the peak of the Australian flu season
and subsequently had a material impact on our
FY2024 revenue. However, by working closely with
our customers, we were able to quickly restore
the performance of the assay. This allowed us to
reestablish regulatory registration status with
the Australian Therapeutic Goods Administration
Genetic Signatures Limited – Annual Report 2024
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7
(TGA) ahead of the 2024 Australian respiratory
infection season.
During FY2024, Genetic Signatures’ Board made
the strategic decision to cease further clinical
development of its EasyScreen™ Essentials
Respiratory Detection Kit for the US. This
decision was underpinned by a recognition of
rapidly changing market dynamics, including the
increasing number of cleared and established
competing products in the market for this
application, and a general decline in respiratory
testing over the past 24-36 months. Although
disappointing, this decision has allowed
the Company to focus its efforts towards
the commercialisation of the EasyScreen™
Gastrointestinal Parasite Detection Kit.
In response to the reduced revenue, we
implemented several initiatives to more
closely manage the Company’s cost base. These
required sacrifices from our team as well as
temporarily pausing non-critical research and
development programs, and the development
of our Next Generation sample to answer
instrument. With a stronger balance sheet now in
place, and an expectation of improving cash flows
from growing sales, we intend to resume these
development activities in the coming year.
Despite these challenges, the team's dedication
has enabled the Company to end the 2024
financial year on a high note and to start FY2025
with renewed focus, drive and energy. This
momentum would not have been possible without
the unwavering support of Genetic Signatures’
shareholders. Their participation in two capital
raises in FY2024, totalling $34.9 million, is a
testament to their belief in our vision and our
ability to deliver long term value. This will further
support the Company to accelerate its growth
plans and invest in key product development
programs to drive future growth. We sincerely
thank our shareholders for their ongoing
partnership and confidence in our journey.
I would also like to extend my sincere thanks
to the Board of Directors, our global team, and
our channel partners for their resilience and
commitment throughout a challenging year.
Their efforts and sacrifice culminated in the
most significant achievement in the Company’s
history and put Genetic Signatures on a strong
growth trajectory for success.
Neil Gunn
Interim CEO
Genetic Signatures' recent FDA 510(k) clearance of the EasyScreen™ Gastrointestinal Parasite Detection Kit and
automated workflow represents the Company’s most significant achievement to date. Eagerly anticipated by the
Americas team and customers, this milestone sets the stage for substantial Company growth in the coming years.
Positioned for success, Ron Gonzales, Vice President Americas, has assembled a highly experienced, cohesive,
and motivated team, who were thrilled to begin executing the post-clearance growth strategy for the region.
“With FDA clearance of our EasyScreen™ Gastrointestinal Parasite Panel, many institutions
across the United States have already initiated procurement of this invaluable diagnostic tool.
Our dedicated US team, having spent years building trusted relationships with key accounts,
has also seen significant interest from those who were eagerly awaiting the FDA clearance.
Inspired by this milestone, these institutions are now conducting evaluations, paving the way
for solid sales growth in the coming financial year.”
– Ron Gonzales, Vice President Americas, Genetic Signatures
US Market Opens
Genetic Signatures Poised for Success with
FDA-Cleared Parasite Detection Kit Meeting
Growing Demand for Molecular Testing
The impact of misdiagnosed
Giardia infection – Jason’s story
I was travelling on business in the western part of
the United States, California specifically. In that
part of the country, during certain months out of
the year, if you drink water that's contaminated,
you can contract a parasite known as Giardia.
And that's what I wound up having. So, I came
home from my trip and immediately went to see a
doctor.
They initially diagnosed me with salmonella
poisoning stating that “You've probably eaten
something bad. This will pass in a few days.”
Unfortunately, a week goes by after taking
antibiotics and my symptoms were still not
getting any better. What wound up happening
was that I was in and out of hospitals and very,
very ill seeing numerous doctors for probably
up to 75 days before someone actually said
the word to me, “Giardia”.
After all this time, it was the first time someone
had diagnosed me correctly. The doctor said “we
need to get a stool sample to see if this is what
you actually have”, and that's when I was finally
officially diagnosed with Giardia.
Because they took so long to correctly diagnose me,
I had gone through multiple rounds of antibiotics,
which just made my health even worse.
I would have loved to have known, or had access
to, one of these new PCR tests, which would
have identified my Giardia infection so much
earlier in the process. I think this new test by
Genetic Signatures will really shrink the amount
of time to diagnosis and save people a lot of the
symptoms and problems I had to go through.
Jason Rasmusson
Giardia patient
United States
Genetic Signatures Limited – Annual Report 2024
8
The Clinical Need for
Molecular Testing for
Gastrointestinal Parasites
Each year, over 3.5 billion people worldwide
are infected with GI parasites, resulting in over
200,000 deaths and significant health and
economic burdens(1). It is estimated that there
are approximately 65 million cases of parasitic
GI infections per annum in the US(2-6) with 15%
presenting to medical professionals(7,8).
The incidence of gastrointestinal parasites in
the US remains a public concern. Local cases
are often linked to contaminated water, food
or surfaces. Additionally, GI parasites can be
acquired during international travel or by intra
family transmission, with asymptomatic cases
playing a role in spreading infection(9,10).
In the US, diagnosis primarily relies on
microscopy, which is time-consuming, complex,
labour intensive, variable in reliability, and
heavily reliant on highly trained staff(11). The
impact of misdiagnosed parasitic infections can
be substantial, resulting in significant health
complications and economic burden.
“For parasites, we were doing everything
manually, everything with the same
methods, everything done by British Naval
doctors in the 1800s. To think that we
hadn't come very far in 200 years and as
a community bemoaning how insensitive
microscopy is, and all the flaws with it,
and all the challenges. It just didn't make
sense that we wouldn't try molecular.
At ARUP, we embrace new technologies
and try to modernize our tests and make
them better. Once ordering physicians
have used molecular for parasite
screening, they become users. They are
not going to go back to O&P. Unless it's a
scenario where they think the patient has
Schistosoma or hookworm, or something
that isn't targeted, then they would
supplement with O&P.”
Prof. Marc Roger Couturier
Ph.D., D(ABMM)
Head of Clinical Operations,
Microbiology and Immunology
Medical Director of Parasitology/
Fecal Testing, Infectious Disease
Antigen Testing
Medical Director over Emerging
Public Health Crises
9
Genetic Signatures' solution
addresses significant
diagnostic challenges
The EasyScreen™ Gastrointestinal Parasite
Detection Kit and GS1 automated workflow offers
a significant advancement in clinical diagnostics
for expanded gastrointestinal parasite testing,
providing healthcare professionals with a
powerful, innovative tool for accurate and
timely diagnosis.
Utilising patented 3base® technology, this highly
sensitive gastrointestinal parasite panel can
identify the eight most common and clinically
relevant gastrointestinal parasites in a single test,
from a single patient sample. This is the broadest
FDA cleared molecular solution available on the
market for parasite detection.
The automated workflow addresses the many
challenges of highly manual and complex
microscopic examinations. Genetic Signatures’
GS1 automated system performs sample
extraction and PCR set-up to provide a significant
walkaway time and same-day reporting. This
rapid turnaround enables timely and appropriate
patient management, significantly reducing
healthcare costs and health burden.
Laboratory-developed tests (LDTs) for detecting
gastrointestinal parasites, although often
molecular, also pose significant challenges
for laboratories. These challenges include the
high cost associated with test development,
use, and management. Managing LDTs can
also be labour-intensive, involving protocol and
assay development, performance validation,
quality certification, training, and instrument
maintenance. Due to these complexities, many
laboratories prefer FDA-cleared solutions, as
the manufacturer handles these requirements,
offering greater assurance of quality, consistency,
and regulatory compliance. Genetic Signatures is
well placed to address this market segment and
support laboratory transition to the FDA 510(k)
solution for GI parasite detection.
"The majority of diagnostic parasitology
testing is categorized as high complexity,
requiring a high level of interpretation
and judgment – particularly related
to microscopy. Genetic Signatures’
gastrointestinal parasite panel advances
molecular microbiology by providing rapid
diagnostics with increased sensitivity and
specificity over routine methods, resulting
in improved patient outcomes.”
Lynne Garcia
Director
LG & Associates
United States
Genetic Signatures Limited – Annual Report 2024
10
Reviving In-House Testing: Genetic Signatures' FDA-cleared
solution restores comprehensive parasite detection to the lab
– Julie Ribes, MD, PhD, Director – Microbiology
Left: Jeff Roberts
Supervisor for Clinical
Microbiology
Right: Ben Cobb
Lead Technician
Molecular Microbiology
References:
1. Hajare ST, Gobena RK, Chauhan NM, Erniso F. Prevalence of Intestinal Parasite Infections and Their Associated
Factors among Food Handlers Working in Selected Catering Establishments from Bule Hora, Ethiopia. Biomed Res
Int. 2021 Aug 19;2021:6669742. doi: 10.1155/2021/6669742. PMID: 34458370; PMCID: PMC8397551.
2. United States Census Bureau. (2024) S and World Population Clock. https://www.census.gov/popclock/
3. Sandler RS, Everhart JE, Donowitz M, et al. The burden of selected digestive diseases in the United States.
Gastroenterology. 2002;122:1500–
4. Amin OM. Seasonal prevalence of intestinal parasites in the United States during 2000. Am J Trop Med Hyg. 2002
Jun;66(6):799-803. doi: 10.4269/ajtmh.2002.66.799. PMID: 12224595.
5. Kappus, Karl K., et al. “Results of Testing for Intestinal Parasites by State Diagnostic Laboratories, United States,
1987.” Morbidity and Mortality Weekly Report: Surveillance Summaries, vol. 40, no. SS-4, 1991, pp. 25– JSTOR,
http://www.jstor.org/stable/24675438. Accessed 28 May 2024.
6. Stark, D. (2023). Genetic Signatures Webinar Series: Syndromic PCR testing for GI parasites including Dientamoeba
fragilis and microsporidia, and their role in gastrointestinal disease.
https://geneticsignatures.com/us/resource/advances-in-gastrointestinal-parasite-testing-molecular-detection-
of-gi-parasites/
7. Schmidt MA, Groom HC, Rawlings AM, Mattison CP, Salas SB, Burke RM, et al. Incidence, Etiology, and Healthcare
Utilization for Acute Gastroenteritis in the Community, United States. Emerg Infect Dis. 2022;28(11):2234-2242.
https://doi.org/10.3201/eid2811.220247
8. Sandler RS, Stewart WF, Liberman JN, Ricci JA, Zorich NL. Abdominal pain, bloating, and diarrhea in the United
States: prevalence and impact. Dig Dis Sci. 2000 Jun;45(6):1166-71. doi: 10.1023/a:1005554103531. PMID: 10877233.
9. Centers for Disease Control and Prevention. (2024) Traveler’s Health. https://wwwnc.cdc.gov/travel/
yellowbook/2024/posttravel-evaluation/persistent-diarrhea-in-returned-travelers
10. Stark, D.; Barratt, J.; Ellis, J.; Harkness, J.; Marriott, D. Repeated Dientamoeba fragilis Infections: A Case Report of
Two Families from Sydney, Australia. Infect. Dis. Rep. 2009, 1, e4. https://doi.org/10.4081/idr.2009.1280
11. Couturier, M. (2023). Genetic Signatures Webinar Series: The Burden of Gastrointestinal Parasites and Advances in
Ova and Parasite Diagnostic Screening. https://geneticsignatures.com/us/resource/molecular-op-webinar-1/
Customer Case Study:
University of Kentucky
The FDA clearance of the Genetic Signatures
multiplex PCR parasite panel for the detection of
diarrheal disease is a real bonus for labs wanting
a comprehensive approach to detecting the
clinically significant protozoal parasites causing
diarrhea. In comparison to other assays that
detect only a few of the significant pathogens, the
Genetic Signatures panel provides that one stop
shopping for parasite detection.
During COVID times, our lab needed to make the
dreadful decision to outsource our microscopic ova
and parasite (O&P) examinations to make room for a
huge piece of instrumentation to perform COVID PCRs
24/7. We redeployed our O&P staff to perform plate
reading activities as they were already multi-tasking,
and then hired new staff to learn PCR techniques. The
O&P followed in the footsteps of the Microsporidia
examination that had been outsourced to a reference
lab years earlier. Although it made sense to make
these changes, our lab recognized that we could never
reengage with the traditional O&P testing methods.
The plan was to await FDA approval of a comprehensive
diarrheal PCR panel to address this service gap. The
Genetic Signatures diagnostic solution replaces a
time-consuming manual microscopic assay with a
standardized batch PCR assay that is much faster
to complete. With the microscopic aspects removed,
it is now easier to maintain competence in this
testing. Once fully implemented, we expect the
current turn-around time from sample receipt to
decrease from 5-10 days down to 1-2 days.
Genetic Signatures’ assay has worked well with raw
stool, stool in Cary Blair and stool in Total Fix in our
validation experience. Due to the comprehensive
coverage of this panel, we can abandon traditional
O&P for the detection of the 8 key parasite targets and
reserve the O&P wet mount microscopic examination
for the detection of helminth eggs and larvae.
Genetic Signatures’ solution is a much more
sensitive and rapid approach to the detection of
these significant pathogens.
In addition to the big players (Giardia, Cryptosporidium,
Entamoeba histolytica, and Cyclospora) the Genetic
Signatures multiplex assay also detects the two
most common Microsporidia causing diarrhea,
Enterocytozoon bieneusi and Encephalitozoon
intestinalis. Additionally, it also detects Dientamoeba
fragilis and Blastocystis hominis.
This is a game changer for the diagnosis of diarrhea,
especially in immunocompromised patient populations
such as those patients living with HIV/AIDS. Including
Microsporidia, Dientamoeba fragilis, and Blastocystis
hominis will make diagnosing these causes of diarrhea
much easier for practitioners. These organisms are often
overlooked because the testing is not readily accessible.
We see Genetic Signatures’ diagnostic solution
for gastrointestinal parasites as the way forward
to provide rapid and reliable results to better serve
our diverse patient populations in the paediatrics,
the international adoption, international travel,
Ryan White, GI and oncology clinic settings who
may have parasitic causes for their diarrhea.
We’re excited to finally see this FDA 510(k) clearance
being announced.
11
Introducing
Allison Rossiter
Genetic Signatures’ incoming CEO, Allison Rossiter, brings
a distinguished career in healthcare. With a proven track
record at Roche Diagnostics, she navigated complex strategic
challenges to achieve notable success. Ms Rossiter's vision
and leadership will be invaluable to Genetic Signatures as we
enter our next phase of growth.
Allison began her career in Pfizer's IT department
while completing a degree in Computing &
Informatics, and a dissertation on the electronic
data capture for clinical trials. After graduating,
she worked as a network engineer for the Canadian
telecoms giant Nortel Networks, laying the
foundation for her IT career. Seizing the opportunity
for change and challenge, Allison pivoted to a
completely new role as Territory Sales Manager at
Roche in the UK—a career-defining move.
Allison's transition to Roche was immediately
impactful. Her desire to make a difference,
combined with exceptional communication skills,
enabled her to forge strong client relationships
and exceed sales targets year after year. Allison’s
natural aptitude for leadership saw her rise to
various senior roles within Roche UK, where
she built and delivered robust strategies to
lead her team to success. As Director of Point
of Care Diagnostics for the UK and Ireland, she
notably secured government reimbursement
for diagnostic tests, directly writing to the
Prime Minister to lobby for assistance – a bold
and successful initiative that underscored her
determination and leadership.
Her career continued in Canada as the Executive
Director of Sales, leading the Company to
repeatedly exceed both revenue and profit targets
for the first time in over a decade, and later in the
US, as Life Cycle leader, Point of Care Molecular,
delivering a strategy that propelled global growth
in a rapidly emerging diagnostic segment. After
taking the product from start up to scale up,
Allison jumped at the opportunity to lead Roche
Diagnostics Australia as Managing Director,
navigating change management to transform the
culture and support a more agile and customer
centric organisation. In this role, Allison faced
significant leadership challenges created by the
COVID-19 pandemic, ultimately steering the team
to success.
"All the experiences in my career to this
point gave me the training to deal with this
crisis. Remaining calm under pressure
was essential. The experience has shaped
me as a person and a leader."
Genetic Signatures'
incoming CEO
Genetic Signatures Limited – Annual Report 2024
12
After five years at the helm, Allison will now
embrace her role as CEO at Genetic Signatures,
commencing in September 2024, where she
aims to advance the Company’s patented 3base®
technology for the detection of infectious disease,
and expand Genetic Signatures' impact on the
global stage.
“Supporting an Australian company to
become an international success would
be hugely rewarding. It would give me
immense pride to make a difference of this
scale. I thrive on these challenges! I am
so excited as the Company is just opening
up to the US and we are nimble and agile
enough to make real, positive change
to drive growth, and change the lives of
patients. I am also honoured to break
further boundaries for more female CEOs
within this industry.”
To support Genetic Signatures’ growth, Allison
emphasises the importance of resilience, a clear
strategic vision, focus, and the courage to take
measured risks.
“Fortune favours the bold. I believe in
creating and executing a shared strategy
with clearly defined goals that pave the
way to success. I want Genetic Signatures
to thrive, and for my team to be the best
versions of themselves. I take pride in
my team’s efforts and celebrating their
achievements is something I truly cherish.”
Genetic Signatures’ lived company values
resonate strongly with Allison, who attributes
a company's success to its people and culture,
advocating for clear communication, tenacity,
and kindness. Her courageous authenticity,
rooted in her Northern English country values of
honesty and pride in hard work, underpins her
leadership style, fostering genuine relationships
and teamwork.
The Genetic Signatures team look forward
to officially welcoming Allison when she
commences her role.
13
Contents
Financial
Report 2024
Directors’ Report .................................................................16
Auditors Declaration ..........................................................32
Financial Report
Consolidated Statement of Profit or Loss
and Other Comprehensive Income............................34
Consolidated Statement of
Financial Position .......................................................35
Consolidated Statement of Changes in Equity ........36
Consolidated Statement of Cash Flows ...................37
Notes to the Consolidated Financial Statements ...38
Consolidated Entity Disclosure Statement ..............66
Directors’ Declaration .........................................................68
Independent Auditor's Report ...........................................69
Shareholder Information ...................................................74
Company Directory .............................................................76
Notes ...................................................................................78
Genetic Signatures Limited – Annual Report 2024
14
15
15
Directors’ Report
The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as
the 'consolidated entity') consisting of Genetic Signatures Limited (referred to hereafter as the 'company' or 'parent entity') and
the entities it controlled at the end of, or during, the year ended 30 June 2024.
Directors
The following persons were directors of Genetic Signatures Limited during the whole of the financial year and up to the date
of this report, unless otherwise stated:
Nickolaos Samaras
Michael A Aicher
Anthony J Radford (resigned on 22 August 2024)
Neil Gunn
Caroline C Waldron
Stéphane D Chatonsky (appointed on 4 December 2023)
John R Melki (resigned on 29 April 2024)
Principal activities
The principal activities of the group during the financial year were the research and development into identifying and
commercialisation of molecular diagnostics products 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.
Dividends
No dividends were paid or were payable during the year (2023: NIL).
Review of operations
Genetic Signatures has generated disappointing sales of 3base® EasyScreen™ Detection Kits and systems for the year
ended 30 June 2024 with $9.766 million in revenue, representing a 42% decrease over the previous year. This decline was
primarily attributable to inconsistent sensitivity for low titre influenza B virus when employing the EasyScreen™ Respiratory
Pathogen Detection Kit. In the international markets the Company achieved a significant milestone with receiving news that
the US Food and Drug Administration (FDA) 510(k) had cleared the EasyScreen™ Gastrointestinal Parasite Detection Kit and
GS1 automated workflow for marketing and sale in the United States.
Genetic Signatures posted a full year net loss of
$17.862
million,
compared
to
the
prior
corresponding period loss of $14.052 million.
Gross margins on materials were 53%, compared
to 60% in the prior year. The reduction in gross
margin is attributable to the reduction in production
volumes
and
an
increase
in
inventory
obsolescence during the year. Freight and
warehousing continue to be a significant expense
due to increased logistics costs. Margins are
expected to be maintained or improved as revenue
increases and as the Company increases revenue
in the United States.
The reduction in revenue in the year resulted in the
company reducing expenditure in various expense
categories. Scientific consumables decreased 34% to $3.375 million for the year, and travel and marketing expenses
decreased 20% to $1.3 million. Employee benefits expense of $15.139 million was up slightly compared to the prior
corresponding period of $15.037 million. The Company incurred $282k of restructuring expenses during the year. Included
in employee benefits expense are share-based payments expenses of $0.9 million which is a non-cash item.
Cash on hand was $36.252 million at 30 June 2024 and the consolidated entity remains debt free. Genetic Signatures has
reported net operating cash outflows for the year of $10.120 million which includes collections from customers of $10.629
million and research & development tax incentives received of $6.877 million. During the year, the consolidated entity made
$1.979 million in investments in instrumentation for use at customer sites and machinery for production or research work, and
$2.812 million in capitalised intangible assets. Development on the NextGeneration Instrument was placed on hold during the
year to reduce cash outflows due to the reduction in respiratory revenue in Australia. The consolidated entity completed two
equity raises during the financial year, with proceeds from the issue of shares net of transaction costs being $34.992 million.
Genetic Signatures Limited – Annual Report 2024
16
for the financial year ended
30 June 2024
In April 2024, Genetic Signatures announced that Dr John Melki had stepped down from the role of CEO and that Non
Executive Director Dr Neil Gunn had assumed the role of Interim CEO pending the appointment of a new CEO. In June 2024,
the Company announced that Allison Rossiter, Managing Director of Roche Diagnostics Australia, was appointed as CEO and
would commence in that role in September 2024. On commencement of Ms Rossiter’s appointment, Dr Neil Gunn will conclude
his role as Interim CEO but will continue as Non-Executive Director.
Commercialisation Progress by Market
Australia
In April 2024, Genetic Signatures was advised that the Australian Therapeutic Goods Administration (TGA) had completed its
review of the redesigned EasyScreen™ Respiratory Pathogen Detection Kit and included the updated device in the Australian
Register of Therapeutic Goods (ARTG), allowing its supply to Australian customers. The updated product provides improved
detection of the Influenza B virus in samples with low concentrations of the virus.
Sales of the redesigned product were initiated in the last quarter of financial year 2024, coinciding with the commencement of
the Australian winter acute respiratory infection season. Sales were in line with historical sales indicating that previous
customers have resumed their purchase of the product following its temporary withdrawal from the market during mid-2024.
EMEA
The Company has a direct sales and support team in the United Kingdom and Germany. The team have been engaging with
existing and potential customers to increase adoption of the Company’s 3base® technology. During the year the Company
has reduced headcount to reduce costs in the region.
The region contributed 10.7% of total sales revenue in the current financial year.
North America
In September 2023, Genetic Signatures submitted a 510(k) application to the FDA for regulatory clearance to market its
EasyScreen™ Gastrointestinal Parasite Detection Kit and automated workflow in the US, which was subsequently cleared in
June 2024. This kit has the broadest coverage of any FDA-cleared molecular test for this indication and identifies 8 of the
most common and clinically relevant gastrointestinal parasites in a single test. These 8 pathogens are estimated to account
for over 90% of all gastrointestinal parasitic infections in the US. Genetic Signatures’ EasyScreen™ Gastrointestinal Parasite
Detection Kit is highly automated and able to provide a result for all 8 targets within 5 hours.
The current practice for gastrointestinal parasite testing in the US is predominantly microscopic examination using O&P (ova
and parasite) testing, which is time-consuming, labour intensive, slow to provide a result, of variable sensitivity, and frequently
has poor patient compliance when using multi-sample protocols. It is estimated that there are 65 million cases of parasitic
gastrointestinal infection in the US which result in approximately 5.5 million O&P tests each year.
Genetic Signatures commenced US commercial activity of the EasyScreenTM Gastrointestinal Parasite Detection Kit and
workflow. During the FDA review process, Genetic Signatures installed instruments at nine customer experience sites and
completed training at these sites which span a range of customer groups including hospitals, health departments and corporate
pathology providers. The CPT codes have been identified which are relevant for providing reimbursement to end users from
both public and private payors.
In May 2024, Genetic Signatures advised that it was discontinuing the development of its EasyScreen™ Essentials
Respiratory Detection Kit for the US market due to increased competition and changing market dynamics. Since starting the
development of this product for the US market, a number of high-throughput, fully-automated respiratory syndromic molecular
tests have been cleared by the FDA and become established in the US market. In parallel, the molecular testing for respiratory
pathogens in the US has declined significantly over the preceding 24-36 months. Consequently, the Company decided to
cease further investment in development and clinical trials of this product.
17
A Distributor Channel Manager is in place to strategically target sales in markets where language and culture require local
representation and where it isn’t economic to operate a direct sales force.
Directors’ Report
Looking Forward
Genetic Signatures will focus on commercialisation of the EasyScreen™ Gastrointestinal Parasite Detection Kit in the United
States.
The consolidated entity is focused on its goal of being a solution of choice for pathology laboratories. Key goals over the next
12 months include:
•
Launch of the EasyScreen™ Gastrointestinal Parasite Detection Kit in the US.
•
Progressing software and instrument development and enhancements.
•
Expanding the European customer base and the range of tests adopted by customers. This includes establishing
distributor-based sales teams in markets not currently served.
•
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 US.
Significant changes in the state of affairs
There were no significant changes in the state of affairs of the consolidated entity during the financial year.
Matters subsequent to the end of the financial year
In July 2024, the Company completed the Retail Entitlement Offer, resulting in the issue of 11,298,671 fully paid ordinary
shares at $0.75 per share. The gross proceeds from this offer were approximately $8.5 million.
Apart from the above, no matter or circumstance has arisen since 30 June 2024 that has significantly affected, or may
significantly affect the consolidated entity's operations, the results of those operations, or the consolidated entity's state of
affairs in future financial years.
Likely developments and expected results of operations
Likely developments in the operations of the consolidated entity include the launch of the EasyScreen™ Gastrointestinal
Parasite Detection Kit in the US. The consolidated entity cannot forecast the financial impact at this stage. Work is also
underway on the development of a new instrument. This project has been estimated to cost between $10-12 million, including
external consultancy, prototyping and other internal costs.
Business risks
The following is a summary of material business risks that could adversely affect our financial performance and growth
potential in future years and how we propose to mitigate such risks.
Product Pipeline
The consolidated entity’s long-term sustainable viability will be determined in part by its ability to continue to identify and
successfully develop and fund a pipeline of products capable of commercialisation and will need to be successful in this in the
context of a dynamic and changing competitive landscape. The group will also need to protect and enhance the intellectual
property position surrounding its portfolio. The commercial team remains alert to scientific and market developments and
dedicates resources to intellectual property protection strategy and implementation.
Competitive Risk
The molecular diagnostic industries are highly competitive, and includes companies with significantly greater financial,
technical, human, research and development, and marketing resources than the group. There are companies that compete
with the consolidated entity’s efforts to discover, validate and commercialise molecular diagnostic products or product
candidates. The group’s competitors may discover and develop products in advance of the group and/or products that are
more effective than those developed by the group. As a consequence, the group’s current and future technologies and
products may become obsolete or uncompetitive, resulting in adverse effects on revenue, margins and profitability.
Regulatory Risk
The consolidated entity’s operates under a broad range of legal, regulatory, tax and political systems. The continued viability
of the group, including its ability to have products successfully approved or commercialised in its operating regions, as well as
maintaining a competitive advantage, may be adversely impacted by regional specific regulatory regimes (which may result
in delays or rejections of applications or regulatory sanctions if not appropriately managed), changes in regulatory or fiscal
regimes, difficulties in interpreting or complying with local laws and reversal of current political, judicial or administrative
policies, including as a result of geopolitical tensions. Regulatory risk includes changes in reimbursement regulation. The
Genetic Signatures Limited – Annual Report 2024
18
for the financial year ended
30 June 2024
consolidated entity has developed and seeks to continuously improve its regulatory compliance frameworks, including those
for risk area identification and management, training, monitoring, reporting and remediation.
Reliance on key personnel
The consolidated entity currently employs a number of key management personnel, and the group’s future depends on
retaining and attracting suitably qualified personnel. The group has included in its employment with key personnel provisions
aimed at providing incentives and assisting in the recruitment and retention of such personnel. It has also, as far as legally
possible, established contractual mechanisms through employment and consultancy contracts to limit the ability of key
personnel to join a competitor or compete directly with the group. Despite these measures, however, there is no guarantee
that the group will be able to attract and retain suitably qualified personnel, and a failure to do so could materially and adversely
affect the value of the consolidated entity’s technologies.
Environmental regulation
The group’s operations are not regulated by any significant environmental regulation under a law of the Commonwealth or of
a State or Territory
Climate risk
The Board is considering on an ongoing basis the potential response to climate risk and considering potential implementation
of a formal review and policy response in future years.
Information on directors
Name:
Nickolaos Samaras
Title:
Non-Executive Chairman
Qualifications:
BSc (Hons), PhD, MBA, FAIM, FAICD
Experience and expertise:
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.
Other current directorships:
None
Former directorships (last 3 years):
None
Special responsibilities:
Member Nomination and Remuneration Committee; Member Audit & Risk Committee
Interests in shares:
2,500,000 ordinary shares
Interests in options:
None
Contractual rights to shares:
None
19
Directors’ Report
Name:
Anthony J Radford AO FTSE
Title:
Non-Executive Director (resigned on 22 August 2024)
Qualifications:
BSc (Hons), PhD, DipCorpMan
Experience and expertise:
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.
Other current directorships:
None
Former directorships (last 3 years): None
Special responsibilities:
None
Interests in shares:
276,091 ordinary shares
Interests in options:
None
Contractual rights to shares:
None
Name:
Neil Gunn
Title:
Non-Executive Director, Interim CEO (Appointed Interim CEO on 30 April 2024)
Qualifications:
BSc, Msc, PhD
Experience and expertise:
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
Other current directorships:
Non-Executive Director – NeoGenomics Labortories (NASDAQ: NEO)
Former directorships (last 3 years): None
Special responsibilities:
Member of the Nomination and Remuneration Committee
Interests in shares:
None
Interests in options:
250,000 options over ordinary shares
500,000 options over ordinary shares to be approved at the 2024 AGM
Contractual rights to shares:
None
Name:
Michael A. Aicher
Title:
Executive Director – US Operations
Qualifications:
BSc, MBA
Experience and expertise:
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 and Techcyte. 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.
Mr. Aicher is based in Los Angeles, USA
Other current directorships:
None
Former directorships (last 3 years): None
Special responsibilities:
None
Interests in shares:
645,785 ordinary shares
Interests in options:
None
Contractual rights to shares:
None
Genetic Signatures Limited – Annual Report 2024
20
for the financial year ended
30 June 2024
Name:
Caroline C. Waldron
Title:
Non-Executive Director
Qualifications:
LLB (Hons), GAICD, FGIA
Experience and expertise:
Ms Waldron is a cross-border advisor and director with over 30 years expertise in
governance, marketing, human resources, and digital transformation across a range of
sectors. Her 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 the Governance Institute of Australia.
Other current directorships:
Non-executive Director – Resimac Group Ltd (ASX:RMC)
Former directorships (last 3 years):
Non-executive Chair – AMA Group Ltd (ASX: AMA)
Special responsibilities:
Chair Nominations and Remuneration Committee, Member Audit & Risk Committee
Interests in shares:
19,212 ordinary shares
Interests in options:
250,000 options over ordinary shares
Contractual rights to shares:
None
Name:
Stéphane D. Chatonsky
Title:
Non-Executive Director
Qualifications:
BEc, MBA, GAICD
Experience and expertise:
Stéphane Chatonsky brings over 25 years expertise in finance, investment, M&A and
strategy with a particular focus on high growth and globalising companies. He has held
senior executive positions with globally recognized organizations, including Lazard,
McKinsey & Co, Macquarie Bank and LeapFrog Investments. Throughout his career,
Mr. Chatonsky has also assumed notable roles as a Non-Executive Director, Chair, and
advisor for leading companies in the pathology, healthcare, technology and AI sectors.
Currently, he serves on the boards of Cerulea Clinical Trials, Drop Bio Health and Neo-
Bionica and is Chair of Brainmates. He is also a senior advisor to Heidi Health, an
expert-in-residence with Cicada Innovations and a Chair with the CEO Institute.
Stéphane Chatonsky earned a Bachelor’s Degree in Economics from ESSEC Business
School in Paris, an MBA from the Wharton School (University of Pennsylvania), and is
a Graduate of the Australian Institute of Company Directors.
Other current directorships:
None
Former directorships (last 3 years):
None
Special responsibilities:
Chair Audit & Risk Committee
Interests in shares:
161,500 ordinary shares
Interests in options:
None
Contractual rights to shares:
None
Name:
John R. Melki (resigned on 29 April 2024)
Title:
Former Chief Executive Officer and Managing Director
Qualifications:
BSc (Hons), PhD
Experience and expertise:
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.
Other current directorships:
None
Former directorships (last 3 years):
None
Special responsibilities:
Former member of Nominations and Remuneration Committee & Audit & Risk
Committee
Interests in shares:
Not applicable as no longer a director
Interests in options:
Not applicable as no longer a director
Contractual rights to shares:
Not applicable as no longer a director
21
Directors’ Report
'Other current directorships' quoted above are current directorships for listed entities only and excludes directorships of all
other types of entities, unless otherwise stated.
'Former directorships (last 3 years)' quoted above are directorships held in the last 3 years for listed entities only and excludes
directorships of all other types of entities, unless otherwise stated.
Company secretary
Karl Pechmann (B. Bus, CA, AGIA) has held the role of Company Secretary since June 2023. He was previously the CFO
and company secretary for OncoSil Medical Ltd (ASX: OSL) and Kyckr Ltd (ASX: KYK) and has held senior finance roles at
both ASX-listed and multinational organisations.
Meetings of directors
The number of meetings of the company's Board of Directors ('the Board') and of each Board committee held during the year
ended 30 June 2024, and the number of meetings attended by each director were:
Full board
Nomination and
Remuneration Committee
Audit and Risk Committee
Attended
Held
Attended
Held
Attended
Held
Nickolaos Samaras
7
7
2
2
3
3
Anthony J. Radford
7
7
-
-
2
2
Neil Gunn
7
7
2
2
-
-
Michael A. Aicher
7
7
-
-
-
-
Caroline C. Waldron
7
7
2
2
3
3
Stéphane D. Chatonsky*
5
5
-
-
1
1
John R. Melki**
5
5
-
-
2
2
*Stéphane D. Chatonsky was appointed as Director on 4 December 2023
** John R Melki resigned as Director on 29 April 2024
Held: represents the number of meetings held during the time the director held office or was a member of the relevant
committee.
Remuneration report (audited)
The remuneration report details the key management personnel remuneration arrangements for the consolidated entity, in
accordance with the requirements of the Corporations Act 2001 and its Regulations.
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the
activities of the entity, directly or indirectly, including all directors.
The remuneration report is set out under the following main headings:
●
Principles used to determine the nature and amount of remuneration
●
Details of remuneration
●
Service agreements
●
Share-based compensation
●
Additional information
●
Additional disclosures relating to key management personnel
Principles used to determine the nature and amount of remuneration
The objective of the consolidated entity's executive reward framework is to ensure reward for performance is competitive and
appropriate for the results delivered. The framework aligns executive reward with the achievement of strategic objectives and
the creation of value for shareholders, and it is considered to conform to the market best practice for the delivery of reward.
The Board of Directors ('the Board') ensures that executive reward satisfies the following key criteria for good reward
governance practices:
●
competitiveness and reasonableness
●
acceptability to shareholders
●
performance linkage / alignment of executive compensation
●
transparency
Genetic Signatures Limited – Annual Report 2024
22
for the financial year ended
30 June 2024
The Nomination and Remuneration Committee is responsible for determining and reviewing remuneration arrangements for
its directors and executives. The performance of the consolidated entity depends on the quality of its directors and executives.
The remuneration philosophy is to attract, motivate and retain high performance and high-quality personnel.
The Nomination and Remuneration Committee has structured an executive remuneration framework that is market competitive
and complementary to the reward strategy of the consolidated entity.
The reward framework is designed to align executive reward to shareholders' interests. The Board have considered that it
should seek to enhance shareholders' interests by:
●
having economic profit as a core component of plan design
●
focusing on sustained growth in shareholder wealth, consisting of dividends and growth in share price, and delivering
constant or increasing return on assets as well as focusing the executive on key non-financial drivers of value
●
attracting and retaining high calibre executives
Additionally, the reward framework should seek to enhance executives' interests by:
●
rewarding capability and experience
●
reflecting competitive reward for contribution to growth in shareholder wealth
●
providing a clear structure for earning rewards
In accordance with best practice corporate governance, the structure of non-executive director and executive director
remuneration is separate.
Non-executive directors remuneration
Fees and payments to non-executive directors reflect the demands and responsibilities of their role. Non-executive directors'
fees and payments are reviewed annually by the Nomination and Remuneration Committee. The Nomination and
Remuneration Committee may, from time to time, receive advice from independent remuneration consultants to ensure non-
executive directors' fees and payments are appropriate and in line with the market. The chairman's fees are determined
independently to the fees of other non-executive directors based on comparative roles in the external market. The chairman
is not present at any discussions relating to the determination of his own remuneration.
ASX listing rules require the aggregate non-executive directors' remuneration be determined periodically by a general meeting.
The maximum annual aggregate remuneration excluding share-based payments is currently $450,000.
Executive remuneration
The consolidated entity aims to reward executives based on their position and responsibility, with a level and mix of
remuneration which has both fixed and variable components.
The executive remuneration and reward framework has four components:
●
base pay and non-monetary benefits
●
short-term performance incentives
●
share-based payments
●
other remuneration such as superannuation and long service leave
The combination of these comprises the executive's total remuneration.
Fixed remuneration, consisting of base salary, superannuation and non-monetary benefits, are reviewed annually by the
Nomination and Remuneration Committee based on individual and business unit performance, the overall performance of the
consolidated entity and comparable market remunerations.
Executives may receive their fixed remuneration in the form of cash or other fringe benefits (for example motor vehicle benefits)
where it does not create any additional costs to the consolidated entity and provides additional value to the executive.
The short-term incentives ('STI') program is designed to align the targets of the business units with the performance hurdles
of executives. STI payments are granted to certain executives based on specific annual targets and key performance
indicators ('KPI's') being achieved. These include the achievement of revenue targets, first sales in the United States, various
regulatory goals as well as completing a capital raising. Only the capital raising KPI was achieved during the year.
The long-term incentives ('LTI') include long service leave and share-based payments.
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.
23
Directors’ Report
Options are granted under the Genetic Signatures Equity Incentive Plan (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. 750,000 options were
granted in 2024 to key management personnel as at the date of this report.
Consolidated entity performance and link to remuneration
Remuneration for certain individuals is directly linked to the performance of the consolidated entity. A portion of cash bonus
and incentive payments are dependent on defined earnings per share targets being met. The remaining portion of the cash
bonus and incentive payments are at the discretion of the Nomination and Remuneration Committee. Refer to the section
'Additional information' below for details of the earnings and total shareholders return for the last five years.
Use of remuneration consultants
During the financial year ended 30 June 2024, the consolidated entity, through the Nomination and Remuneration Committee,
engaged Godfrey Remuneration Group to review non-executive remuneration. The findings of the review was that the non-
executive remuneration was considered appropriate for the market capitalisation of the consolidated entity.
Voting and comments made at the company's 2023 Annual General Meeting ('AGM')
At the 2023 AGM, 85% of the votes received supported the adoption of the remuneration report for the year ended 30 June
2023. The company did not receive any specific feedback at the AGM regarding its remuneration practices.
Details of remuneration
Amounts of remuneration
Details of the remuneration of key management personnel of the consolidated entity are set out in the following tables.
The key management personnel of the consolidated entity consisted of the following directors of Genetic Signatures Limited:
●
Nickolaos Samaras - Non-Executive Chairman
●
Anthony J Radford - Non-Executive Director
●
Caroline C Waldron - Non-Executive Director
●
Stéphane D Chatonsky - Non-Executive Director
●
Neil Gunn – Non-Executive Director and Interim Chief Executive Officer (appointed as Interim Chief Executive Officer
from 30 April 2024)
●
Michael A. Aicher – Executive Director
●
Dr. John R Melki – Managing Director & Chief Executive Officer until his resignation from these roles on 29 April 2024
And the following persons:
●
Karl D. Pechmann – Chief Financial Officer & Company Secretary
Genetic Signatures Limited – Annual Report 2024
24
for the financial year ended
30 June 2024
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Share-based payments
Cash salary
Cash
Non-
Super-
Long
service
Equity-
settled
Equity-
settled
and fees
bonus
monetary
annuation
leave
shares
options
Total
2024
$
$
$
$
$
$
$
$
Non-Executive
Directors:
Nickolaos
Samaras
120,000
-
-
13,200
-
-
-
133,200
Anthony J
Radford
67,000
-
-
7,370
-
-
-
74,370
Carolne C
Waldron
67,000
-
-
7,370
-
-
34,777
109,147
Stéphane D
Chatonsky
38,654
-
-
4,252
-
-
-
42,906
Executive
Directors:
Neil Gunn*
143,450
-
-
-
-
-
80,757
224,207
Michael A
Aicher**
182,627
-
-
-
-
-
-
182,627
John R Melki***
322,902
25,000
-
27,105
-
-
81,347
456,354
Other Key
Management
Personnel:
Karl D Pechmann
266,198
50,000
-
26,968
10,405
-
-
353,571
1,207,831
75,000
-
86,265
10,405
-
196,881
1,576,382
*
N Gunn is paid in USD. Changes in base remuneration is attributable to the weaker AUD against the USD through FY24
(Average rate FY24: 0.6573, FY23: 0.6726). Additional remuneration has been paid in FY24 in performing the role of
Interim Chief Executive Officer commencing 30 April 2024.
**
M Aicher is paid in USD. Changes in base remuneration is attributable to the weaker AUD against the USD through FY24
(Average rate FY24: 0.6573, FY23: 0.6726).
*** Represents remuneration from 1 July 2023 to 29 April 2024 when J Melki ceased to be KMP.
25
Directors’ Report
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Share-based payments
Cash salary
Cash
Non-
Super-
Long
service
Equity-
settled
Equity-
settled
and fees
bonus
monetary
annuation
leave
shares
options
Total
2023
$
$
$
$
$
$
$
$
Non-Executive
Directors:
Nickolaos
Samaras
117,500
-
-
12,337
-
-
-
129,837
Anthony J
Radford
65,542
-
-
6,882
-
-
-
72,424
Neil Gunn**
89,206
-
-
-
-
-
100,557
189,763
Caroline C
Waldron
65,542
-
-
6,882
-
-
-
72,424
Executive
Directors:
Michael A
Aicher**
178,416
-
-
-
-
-
-
178,416
John R Melki
391,087
38,749
-
25,292
15,514
-
126,297
596,939
Other Key
Management
Personnel:
Peter L Manley*
184,688
-
-
18,685
-
-
98,588
301,961
1,091,981
38,749
-
70,078
15,514
-
325,442
1,541,764
*
Represents remuneration from 1 July 2022 to 23 March 2023 when P Manley ceased to be KMP.
**
N Gunn and M Aicher are paid in USD. Changes in based pay are attributable to the weaker AUD against the USD
through FY23 (Average rate FY23: 0.6726, FY22: 0.7283)
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Fixed remuneration
At risk - STI
At risk - LTI
Name
2024
2023
2024
2023
2024
2023
Non-Executive Directors:
Nickolaos Samaras
100%
100%
-
-
-
-
Anthony J Radford
100%
100%
-
-
-
-
Caroline C Waldron
68%
100%
-
-
32%
-
Stéphane D Chatonsky
100%
100%
-
-
-
-
Executive Directors:
Neil Gunn
64%
47%
-
-
36%
53%
Michael A Aicher
100%
100%
-
-
-
-
John R Melki
77%
72%
5%
6%
18%
21%
Other Key Management
Personnel:
Karl D Pechmann
86%
-
14%
-
-
-
Peter L Manley
-
67%
-
-
-
33%
Genetic Signatures Limited – Annual Report 2024
26
for the financial year ended
30 June 2024
The proportion of the cash bonus paid/payable or forfeited is as follows:
Cash bonus paid/payable
Cash bonus forfeited
Name
2024
2023
2024
2023
Executive Directors:
John R Melki
19%
25%
81%
75%
Michael A Aicher
-
-
-
-
Other Key Management Personnel:
Karl D Pechmann
71%
-
29%
-
Peter L Manley
-
-
-
100%
Service agreements
Remuneration and other terms of employment for key management personnel are formalised in service agreements. Details
of these agreements are as follows:
Name:
John R Melki
Title:
Managing Director and Chief Executive Officer
Agreement commenced:
November 2014
Term of agreement:
Concluded on 29 April 2024
Details:
Base salary of $391,087 plus superannuation, to be reviewed annually by the
Nomination and Remuneration Committee. 3-month termination notice by either party,
cash bonus of up to 40% as per Nomination and Remuneration Committee approval and
KPI achievement, non-solicitation and non-compete clauses.
Name:
Neil Gunn
Title:
Interim CEO
Agreement commenced:
30 April 2024
Term of agreement:
Ongoing until commencement of new Chief Executive Officer
Details:
Base salary of AUD $400,000 inclusive of existing Board fee during the period of acting
as Interim CEO, to be reviewed annually by the Nomination and Remuneration
Committee. 2-day termination notice by either party prior to the commencement of the
permanent Chief Executive Officer.
Name:
Michael A Aicher
Title:
Executive Director – US Operations
Agreement commenced:
April 2014
Term of agreement:
Ongoing
Details:
Base salary of US $120,000, to be reviewed annually by the Nomination and
Remuneration Committee. 1-month termination notice by either party.
Name:
Karl D Pechmann
Title:
Chief Financial Officer
Agreement commenced:
26 June 2023
Term of agreement:
Ongoing
Details:
Base salary of $280,000 plus superannuation, to be reviewed annually by the
Nomination and Remuneration Committee. 3-month termination notice by either party,
cash bonus of up to 25% as per Nomination and Remuneration Committee approval and
KPI achievement, non-solicitation and non-compete clauses.
Key management personnel have no entitlement to termination payments in the event of removal for misconduct.
27
Directors’ Report
Share-based compensation
Options
The terms and conditions of each grant of options over ordinary shares affecting remuneration of directors and other key
management personnel in this financial year or future reporting years are as follows:
Number of
Fair value
options
Vesting date and
per option
Name
granted
Grant date
exercisable date
Expiry date
Exercise price at grant date
Caroline C Waldron
62,500 29/11/2023
29/11/2024
29/11/2038
$0.51
$0.456
Caroline C Waldron
62,500 29/11/2023
29/11/2025
29/11/2038
$0.51
$0.456
Caroline C Waldron
62,500 29/11/2023
29/11/2026
29/11/2038
$0.51
$0.456
Caroline C Waldron
62,500 29/11/2023
29/11/2027
29/11/2038
$0.51
$0.456
Neil Gunn
125,000 30/04/2024
30/04/2025
30/04/2039
$0.69
$0.633
Neil Gunn
125,000 30/04/2024
30/04/2026
30/04/2039
$0.69
$0.633
Neil Gunn
125,000 30/04/2024
30/04/2027
30/04/2039
$0.69
$0.633
Neil Gunn
125,000 30/04/2024
30/04/2028
30/04/2039
$0.69
$0.633
Options granted carry no dividend or voting rights.
All options were granted over unissued fully paid ordinary shares in the company. Options vest based on the provision of
service over the vesting period whereby the executive becomes beneficially entitled to the option on vesting date. Options are
exercisable by the holder as from the vesting date. There has not been any alteration to the terms or conditions of the grant
since the grant date. There are no amounts paid or payable by the recipient in relation to the granting of such options other
than on their potential exercise.
Values of options over ordinary shares granted, exercised and lapsed for directors and other key management personnel as
part of compensation during the year ended 30 June 2024 are set out below:
Value of
Value of
Value of
Remuneration
options
options
options
consisting of
granted
exercised
lapsed
options
during the
during the
during the
for the
year
year
year
year
Name
$
$
$
%
Caroline C Waldron
114,100
-
-
32%
Neil Gunn
316,408
-
-
36%
Additional information
The earnings of the consolidated entity for the five years to 30 June 2024 are summarised below:
2024
2023
2022
2021
2020
$'000
$'000
$'000
$'000
$'000
Sales revenue
9,766
16,939
35,421
28,284
11,263
Profit/(loss) after income tax
(17,705)
(14,052)
3,062
1,756
(2,086)
The factors that are considered to affect total shareholders return ('TSR') are summarised below:
2024
2023
2022
2021
2020
Share price at financial year end ($)
0.72
0.52
1.16
1.10
2.15
Basic earnings/(loss) per share (cents per
share)
(10.81)
(9.80)
2.14
1.23
(1.64)
Genetic Signatures Limited – Annual Report 2024
28
for the financial year ended
30 June 2024
Additional disclosure s relating to key management personnel
Shareholding
The number of shares in the company held during the financial year by each director and other members of key management
personnel of the consolidated entity, including their personally related parties, is set out below:
Balance at
Received
Balance at
the start of
as part of
Disposals/
the end of
the year
remuneration
Additions
other
the year
Ordinary shares
Nickolaos Samaras
2,024,016
-
475,984
-
2,500,000
John R. Melki
1,096,000
-
164,813 (1,260,813)*
-
Michael A. Aicher
645,785
-
-
-
645,785
Anthony J. Radford
240,000
-
36,091
-
276,091
Neil Gunn
-
-
-
-
-
Caroline C. Waldron
16,700
-
2,512
-
19,212
Stéphane D. Chatonsky
-
-
161,500
-
161,500
Karl Pechmann
-
-
-
-
-
4,022,501
-
840,900
(1,260,813)
3,602,588
*
Disposals/other represents 1,260,813 shares held at resignation date
Option holding
The number of options over ordinary shares in the company held during the financial year by each director and other members
of key management personnel of the consolidated entity, including their personally related parties, is set out below:
Balance at
Expired/
Balance at
the start of
forfeited/
the end of
the year
Granted
Exercised
other
the year
Options over ordinary shares
John R. Melki
800,000
-
-
(800,000)*
-
Neil Gunn
250,000
500,000
-
-
750,000
Caroline C. Waldron
-
250,000
-
-
250,000
1,050,000
750,000
-
(800,000)
1,000,000
*
John R. Melki ceased to be a KMP on 29 April 2024. To this effect, options held by Mr Melki are no longer considered
related party options held in the company at 30 June 2024. Options are included in expired/forfeited/other.
This concludes the remuneration report, which has been audited.
29
Directors’ Report
Shares under option
Unissued ordinary shares of Genetic Signatures Limited under option at the date of this report are as follows:
Exercise
Number
Grant date
Expiry date
price
under option
13/10/2016
13/10/2031
$0.52
111,000
30/11/2016
30/11/2031
$0.52
100,000
19/10/2017
19/10/2032
$0.34
242,500
28/08/2018
28/08/2033
$0.53
422,500
29/11/2018
29/11/2033
$0.53
200,000
11/02/2019
11/02/2034
$0.84
150,000
11/11/2019
11/11/2034
$0.98
662,750
11/03/2020
11/03/2035
$1.13
50,000
08/09/2020
08/09/2035
$2.30
870,000
20/11/2020
20/11/2035
$2.30
250,000
10/09/2021
10/09/2036
$1.44
1,180,000
19/11/2021
19/11/2036
$1.44
250,000
19/11/2021
19/11/2036
$1.39
100,000
17/06/2022
17/06/2037
$1.51
36,000
21/09/2022
21/09/2037
$0.93
2,070,000
16/11/2022
16/11/2037
$0.93
250,000
29/11/2023
29/11/2038
$0.51
250,000
30/04/2024
30/04/2039
$0.69
500,000
7,694,750
No person entitled to exercise the options had or has any right by virtue of the option to participate in any share issue of the
company or of any other body corporate.
Shares issued on the exercise of options
The following ordinary shares of Genetic Signatures Limited were issued during the year ended 30 June 2024 and up to the
date of this report on the exercise of options granted:
Exercise
Number of
Date options granted
price
shares issued
13 October 2016
$0.52
20,000
28 August 2018
$0.53
20,000
Indemnity and insurance of officers
The company 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.
Indemnity and insurance of auditor
The company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the
company or any related entity against a liability incurred by the auditor.
During the financial year, the company has not paid a premium in respect of a contract to insure the auditor of the company
or any related entity.
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.
Genetic Signatures Limited – Annual Report 2024
30
for the financial year ended
30 June 2024
Non-audit services
Details of the amounts paid or payable to the auditor for non-audit services provided during the financial year by the auditor
are outlined in note 25 to the financial statements.
The directors are satisfied that the provision of non-audit services during the financial year, by the auditor (or by another
person or firm on the auditor's behalf), is compatible with the general standard of independence for auditors imposed by the
Corporations Act 2001.
The directors are of the opinion that the services as disclosed in note 25 to the financial statements do not compromise the
external auditor's independence requirements of the Corporations Act 2001 for the following reasons:
●
all non-audit services have been reviewed and approved to ensure that they do not impact the integrity and objectivity of
the auditor; and
●
none of the services undermine the general principles relating to auditor independence as set out in APES 110 Code of
Ethics for Professional Accountants issued by the Accounting Professional and Ethical Standards Board, including
reviewing or auditing the auditor's own work, acting in a management or decision-making capacity for the company,
acting as advocate for the company or jointly sharing economic risks and rewards.
Rounding of amounts
The company is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian Securities and Investments
Commission, relating to 'rounding-off'. Amounts in this report have been rounded off in accordance with that Corporations
Instrument to the nearest thousand dollars, or in certain cases, the nearest dollar.
Auditor's independence declaration
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out
immediately after this directors' report.
Auditor
BDO continues in office in accordance with section 327 of the Corporations Act 2001.
This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations Act 2001.
On behalf of the directors
___________________________
Neil Gunn
Director
30 August 2024
Sydney
31
Auditor’s Declaration
Tel: +61 2 9251 4100
Fax: +61 2 9240 9821
www.bdo.com.au
Level 11, 1 Margaret Street
Sydney NSW 2000
Australia
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 2024, I declare that, to the
best of my knowledge and belief, there have been:
1.
No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2.
No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Genetic Signatures Limited and the entities it controlled during the
period.
Gareth Few
Director
BDO Audit Pty Ltd
Sydney, 30 August 2024
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.
Genetic Signatures Limited – Annual Report 2024
32
General information
The financial statements cover Genetic Signatures Limited as a consolidated entity consisting of Genetic Signatures Limited
and the entities it controlled at the end of, or during, the year. The financial statements are presented in Australian dollars,
which is Genetic Signatures Limited's functional and presentation currency.
Genetic Signatures Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered
office and principal place of business are:
Registered office
Principal place of business
7 Eliza Street
7 Eliza Street
Newtown NSW 2042
Newtown NSW 2042
A description of the nature of the consolidated entity's operations and its principal activities are included in the directors' report,
which is not part of the financial statements.
The financial statements were authorised for issue, in accordance with a resolution of directors, on 30 August 2024. The
directors have the power to amend and reissue the financial statements.
33
Consolidated
Note
2024
2023
$'000
$'000
Revenue
4
9,766
16,939
Other income
5
4,002
4,574
Interest revenue
504
542
Expenses
Cost of materials used
(4,537)
(6,712)
Freight on materials & finished goods
(921)
(1,284)
Employee benefits expense
(15,139)
(15,037)
Directors’ and consultancy fees
(1,063)
(983)
Depreciation and amortisation expense
6
(1,995)
(1,526)
Scientific consumables & clinical trials
(3,375)
(5,119)
Software expenses
(680)
(507)
Travel and marketing
(1,303)
(1,633)
Other expenses
(3,086)
(3,305)
Finance costs
6
(35)
(1)
(Loss) before income tax expense
(17,862)
(14,052)
Income tax expense
7
-
-
(Loss) after income tax expense for the year attributable to the owners of
Genetic Signatures Limited
(17,862)
(14,052)
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Foreign currency translation
157
181
Other comprehensive income for the year, net of tax
157
181
Total comprehensive income for the year attributable to the owners of Genetic
Signatures Limited
(17,705)
(13,871)
Cents
Cents
Basic (loss) per share
34
(10.81)
(9.80)
Diluted (loss) per share
34
(10.81)
(9.80)
The above statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes
Financial Report
Consolidated Statement of Profit or
Loss and Other Comprehensive Income
For the year ended 30 June 2024
Genetic Signatures Limited – Annual Report 2024
34
Consolidated
Note
2024
2023
$'000
$'000
Assets
Current assets
Cash and cash equivalents
8
36,252
16,349
Trade and other receivables
9
4,524
4,386
Inventories
10
6,721
8,753
Government grant receivable
11
5,055
6,877
Total current assets
52,552
36,365
Non-current assets
Property, plant and equipment
12
7,283
7,224
Right-of-use assets
13
1,204
-
Intangible assets
14
6,248
5,489
Total non-current assets
14,735
12,713
Total assets
67,287
49,078
Liabilities
Current liabilities
Trade and other payables
15
3,730
4,803
Lease liabilities
16
392
-
Employee benefits
17
1,112
1,266
Total current liabilities
5,234
6,069
Non-current liabilities
Lease liabilities
18
829
-
Employee benefits
19
121
95
Total non-current liabilities
950
95
Total liabilities
6,184
6,164
Net assets
61,103
42,914
Issued capital
20
119,430
84,438
Reserves
21
8,682
7,623
Accumulated losses
22
(67,009)
(49,147)
Equity attributable to the owners of Genetic Signatures Limited
61,103
42,914
Total equity
61,103
42,914
The above statement of financial position should be read in conjunction with the accompanying notes
Consolidated Statement
of Financial Position
As at 30 June 2024
Financial Report
35
Financial Report
Consolidated Statement
of Changes in Equity
For the year ended 30 June 2024
Issued
Retained
Total equity
capital
Reserves
profits
Consolidated
$'000
$'000
$'000
$'000
Balance at 1 July 2022
84,428
5,469
(35,095)
54,802
(Loss) after income tax expense for the year
-
-
(14,052)
(14,052)
Other comprehensive income for the year, net
of tax
-
181
-
181
Total comprehensive income for the year
-
181
(14,052)
(13,871)
Transactions with owners in their capacity as
owners:
Contributions of equity, net of transaction costs
(note 20)
10
-
-
10
Forfeiture of share-based payments
-
(137)
-
(137)
Share-based payments (note 35)
-
2,110
-
2,110
Balance at 30 June 2023
84,438
7,623
(49,147)
42,914
Issued
Retained
Total equity
capital
Reserves
profits
Consolidated
$'000
$'000
$'000
$'000
Balance at 1 July 2023
84,438
7,623
(49,147)
42,914
(Loss) after income tax expense for the year
-
-
(17,862)
(17,862)
Other comprehensive income for the year, net
of tax
-
157
-
157
Total comprehensive income for the year
-
157
(17,862)
(17,705)
Transactions with owners in their capacity as
owners:
Contributions of equity, net of transaction costs
(note 20)
34,992
-
-
34,992
Share-based payments (note 35)
-
902
-
902
Balance at 30 June 2024
119,430
8,682
(67,009)
61,103
The above statement of changes in equity should be read in conjunction with the accompanying notes
Genetic Signatures Limited – Annual Report 2024
36
Consolidated Statement
of Cash Flows
For the year ended 30 June 2024
Financial Report
Consolidated
Note
2024
2023
$'000
$'000
Cash flows from operating activities
Receipts from customers (inclusive of GST)
10,629
19,093
Payments to suppliers and employees (inclusive of GST)
(28,074)
(32,108)
(17,445)
(13,015)
Interest received
483
565
Research and development concession received
6,877
-
Interest and other finance costs paid
(35)
(1)
Net cash used in operating activities
32
(10,120)
(12,451)
Cash flows from investing activities
Payments for property, plant and equipment
(1,979)
(1,932)
Payments for intangible assets
(2,812)
(6,162)
Net cash used in investing activities
(4,791)
(8,094)
Cash flows from financing activities
Proceeds from issue of shares
37,522
11
Share issue transaction costs
(2,530)
(1)
Repayment of lease liabilities
(177)
(33)
Net cash from/(used in) financing activities
34,815
(23)
Net increase/(decrease) in cash and cash equivalents
19,904
(20,568)
Cash and cash equivalents at the beginning of the financial year
16,349
36,897
Effects of exchange rate changes on cash and cash equivalents
(1)
20
Cash and cash equivalents at the end of the financial year
8
36,252
16,349
The above statement of cash flows should be read in conjunction with the accompanying notes
37
Financial Report
Notes to the Consolidated
Financial Statements
Note 1. Material accounting policy information
The accounting policies that are material to the consolidated entity are set out below. The accounting policies adopted are
consistent with those of the previous financial year, unless otherwise stated.
New or amended Accounting Standards and Interpretations adopted
The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the
Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
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').
Historical cost convention
The financial statements have been prepared under the historical cost convention, except for, where applicable, the
revaluation of financial assets and liabilities at fair value through profit or loss, financial assets at fair value through other
comprehensive income, investment properties, certain classes of property, plant and equipment and derivative financial
instruments.
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the consolidated entity's accounting policies. The areas
involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial
statements, are disclosed in note 2.
Going concern
During the financial year ended 30 June 2024 the group has reported a loss after tax of $17,862,000 (2023: loss of
$14,052,000) and a decline in cash flows from operating activities of $10,120,000. As at 30 June 2024, the group holds cash
and cash equivalents of $36,252,000.
The directors have assessed the financial and operating implications of the above matters, including the expected net cash
outflows over the next 12 months. Should forecasted revenue not be achieved, the group can flexibly manage cash outflows
by reducing discretionary expenditure. Based on this consideration, the directors are of the view that the group will be able to
pay its debts as and when they fall due for at least 12 months following the date of these financial statements and that it is
appropriate for the financial statements to be prepared on the going concern basis.
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity only.
Supplementary information about the parent entity is disclosed in note 29.
Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Genetic Signatures Limited
('company' or 'parent entity') as at 30 June 2024 and the results of all subsidiaries for the year then ended. Genetic Signatures
Limited and its subsidiaries together are referred to in these financial statements as the 'consolidated entity'.
Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity controls an entity
when the consolidated entity is exposed to, or has rights to, variable returns from its involvement with the entity and has the
ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the
date on which control is transferred to the consolidated entity. They are de-consolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between entities in the consolidated entity are
eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset
transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies
adopted by the consolidated entity.
Genetic Signatures Limited – Annual Report 2024
38
Notes to the Consolidated
Financial Statements
Note 1. Material accounting policy information (continued)
Operating segments
Operating segments are presented using the 'management approach', where the information presented is on the same basis
as the internal reports provided to the Chief Operating Decision Makers ('CODM'). The CODM is responsible for the allocation
of resources to operating segments and assessing their performance.
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.
Revenue recognition
The consolidated entity recognises revenue as follows:
Revenue from contracts with customers
Revenue is recognised at an amount that reflects the consideration to which the consolidated entity is expected to be entitled
in exchange for transferring goods or services to a customer. For each contract with a customer, the consolidated entity:
identifies the contract with a customer; identifies the performance obligations in the contract; determines the transaction price
which takes into account estimates of variable consideration and the time value of money; allocates the transaction price to
the separate performance obligations on the basis of the relative stand-alone selling price of each distinct good or service to
be delivered; and recognises revenue when or as each performance obligation is satisfied in a manner that depicts the transfer
to the customer of the goods or services promised.
Sale of goods – reagents and consumables
The consolidated entity 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.
Rendering of services
If a customer has purchased or is using equipment owned by the consolidated entity there may be a service charge levied to
maintain the equipment. Revenue is recognised over time in the period that the service is rendered.
39
Financial Report
Notes to the Consolidated
Financial Statements
Note 1. Material accounting policy information (continued)
Interest
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the
amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate,
which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the
net carrying amount of the financial asset.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
Research and Development Tax Incentives
Tax incentives related to research and development costs are deferred and recognised in profit or loss over the period
necessary to match them with the costs that they are intended to compensate.
Income tax
The income tax expenses or benefit for the year comprise current income tax expense/(benefit) and deferred tax expenses or
benefit.
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.
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.
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the
consolidated entity's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within
12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used
to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the consolidated entity's normal operating cycle; it
is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no
unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities are
classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
Genetic Signatures Limited – Annual Report 2024
40
Notes to the Consolidated
Financial Statements
Note 1. Material accounting policy information (continued)
Cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly
liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and
which are subject to an insignificant risk of changes in value. For the statement of cash flows presentation purposes, cash
and cash equivalents also includes bank overdrafts, which are shown within borrowings in current liabilities on the statement
of financial position.
Trade and other receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective
interest method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within 30
days.
The consolidated entity has applied the simplified approach to measuring expected credit losses, which uses a lifetime
expected loss allowance. To measure the expected credit losses, trade receivables have been grouped based on days
overdue.
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
Inventories
Raw materials, work in progress and finished goods are stated at the lower of cost and net realisable value on a 'first in first
out' basis. Cost comprises of direct materials and delivery costs, direct labour, import duties and other taxes, an appropriate
proportion of variable and fixed overhead expenditure based on normal operating capacity, and, where applicable, transfers
from cash flow hedging reserves in equity. Costs of purchased inventory are determined after deducting rebates and discounts
received or receivable.
Stock in transit is stated at the lower of cost and net realisable value. Cost comprises of purchase and delivery costs, net of
rebates and discounts received or receivable.
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.
Plant and equipment
Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes
expenditure that is directly attributable to the acquisition of the items.
Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and equipment
(excluding land) over their expected useful lives as follows:
Plant and equipment
5 years
The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date.
Leasehold improvements are depreciated over the unexpired period of the lease or the estimated useful life of the assets,
whichever is shorter.
An item of plant and equipment is derecognised upon disposal or when there is no future economic benefit to the consolidated
entity. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss.
Right-of-use assets
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which
comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the
commencement date net of any lease incentives received, any initial direct costs incurred, and, except where included in the
cost of inventories, an estimate of costs expected to be incurred for dismantling and removing the underlying asset, and
restoring the site or asset.
41
Financial Report
Notes to the Consolidated
Financial Statements
Note 1. Material accounting policy information (continued)
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful life
of the asset, whichever is the shorter. Where the consolidated entity expects to obtain ownership of the leased asset at the
end of the lease term, the depreciation is over its estimated useful life. Right-of use assets are subject to impairment or
adjusted for any remeasurement of lease liabilities.
The consolidated entity has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases
with terms of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to profit or
loss as incurred.
Intangible assets
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 for the GS-Call software, which can be in the form
of software, licences or systems; and costs associated with development of the Next Generation Instrument Development that
will be unique to the molecular diagnostic 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 is recorded until the development work is in a form from which future economic benefit may be
derived. As the software and instrument development is not yet advanced to this stage, no amortisation has been recorded to
date.
Research costs are expensed in the period in which they are incurred. Development costs are capitalised when it is probable
that the project will be a success considering its commercial and technical feasibility; the consolidated entity is able to use or
sell the asset; the consolidated entity has sufficient resources and intent to complete the development; and its costs can be
measured reliably. Once the development phase is completed, capitalised development costs will be amortised on a straight-
line basis over the period of their expected benefit, being their finite life of 10 years.
Impairment of non-financial assets
At each reporting date, the consolidated entity 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 consolidated entity estimates the
recoverable amount of the cash-generating unit to which the asset belongs.
Trade and other payables
These amounts represent liabilities for goods and services provided to the consolidated entity prior to the end of the financial
year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. The
amounts are unsecured and are usually paid within 30 days of recognition.
Lease liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present
value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or,
if that rate cannot be readily determined, the consolidated entity's incremental borrowing rate. Lease payments comprise of
fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts
expected to be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option is
reasonably certain to occur, and any anticipated termination penalties. The variable lease payments that do not depend on
an index or a rate are expensed in the period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured if
there is a change in the following: future lease payments arising from a change in an index or a rate used; residual guarantee;
lease term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an adjustment is
made to the corresponding right-of use asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written
down.
Genetic Signatures Limited – Annual Report 2024
42
Notes to the Consolidated
Financial Statements
Note 1. Material accounting policy information (continued)
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.
Provisions
Provisions are recognised when the consolidated entity has a present (legal or constructive) obligation as a result of a past
event, it is probable the consolidated entity will be required to settle the obligation, and a reliable estimate can be made of the
amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the
present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. If the time
value of money is material, provisions are discounted using a current pre-tax rate specific to the liability. The increase in the
provision resulting from the passage of time is recognised as a finance cost.
Employee benefits
Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be settled
wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities are settled.
Other long-term employee benefits
The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting date are
measured at the present value of expected future payments to be made in respect of services provided by employees up to
the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels,
experience of employee departures and periods of service. Expected future payments are discounted using market yields at
the reporting date on corporate bonds with terms to maturity and currency that match, as closely as possible, the estimated
future cash outflows.
Defined contribution superannuation expense
Contributions to defined contribution superannuation plans are expensed in the period in which they are incurred.
Share-based payments
Equity-settled and cash-settled share-based compensation benefits are provided to employees.
Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in exchange for the
rendering of services. Cash-settled transactions are awards of cash for the exchange of services, where the amount of cash
is determined by reference to the share price.
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently determined using
the Black-Scholes option pricing model that takes into account the exercise price, the term of the option, the impact of dilution,
the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free
interest rate for the term of the option, together with non-vesting conditions that do not determine whether the consolidated
entity receives the services that entitle the employees to receive payment. No account is taken of any other vesting conditions.
The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity over the vesting
period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the best estimate
of the number of awards that are likely to vest and the expired portion of the vesting period. The amount recognised in profit
or loss for the period is the cumulative amount calculated at each reporting date less amounts already recognised in previous
periods.
The cost of cash-settled transactions is initially, and at each reporting date until vested, determined by applying the Black-
Scholes option pricing model, taking into consideration the terms and conditions on which the award was granted. The
cumulative charge to profit or loss until settlement of the liability is calculated as follows:
●
during the vesting period, the liability at each reporting date is the fair value of the award at that date multiplied by the
expired portion of the vesting period.
●
from the end of the vesting period until settlement of the award, the liability is the full fair value of the liability at the
reporting date.
All changes in the liability are recognised in profit or loss. The ultimate cost of cash-settled transactions is the cash paid to
settle the liability.
43
Financial Report
Notes to the Consolidated
Financial Statements
Note 1. Material accounting policy information (continued)
Market conditions are taken into consideration in determining fair value. Therefore any awards subject to market conditions
are considered to vest irrespective of whether or not that market condition has been met, provided all other conditions are
satisfied.
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been made. An
additional expense is recognised, over the remaining vesting period, for any modification that increases the total fair value of
the share-based compensation benefit as at the date of modification.
If the non-vesting condition is within the control of the consolidated entity or employee, the failure to satisfy the condition is
treated as a cancellation. If the condition is not within the control of the consolidated entity or employee and is not satisfied
during the vesting period, any remaining expense for the award is recognised over the remaining vesting period, unless the
award is forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining expense
is recognised immediately. If a new replacement award is substituted for the cancelled award, the cancelled and new award
is treated as if they were a modification.
Fair value measurement
When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the fair
value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date; and assumes that the transaction will take place either: in the principal market;
or in the absence of a principal market, in the most advantageous market.
Fair value is measured using the assumptions that market participants would use when pricing the asset or liability, assuming
they act in their economic best interests. For non-financial assets, the fair value measurement is based on its highest and best
use. Valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair
value, are used, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
Assets and liabilities measured at fair value are classified into three levels, using a fair value hierarchy that reflects the
significance of the inputs used in making the measurements. Classifications are reviewed at each reporting date and transfers
between levels are determined based on a reassessment of the lowest level of input that is significant to the fair value
measurement.
For recurring and non-recurring fair value measurements, external valuers may be used when internal expertise is either not
available or when the valuation is deemed to be significant. External valuers are selected based on market knowledge and
reputation. Where there is a significant change in fair value of an asset or liability from one period to another, an analysis is
undertaken, which includes a verification of the major inputs applied in the latest valuation and a comparison, where applicable,
with external sources of data.
Issued capital
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax,
from the proceeds.
Dividends
Dividends are recognised when declared during the financial year and no longer at the discretion of the company.
Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of Genetic Signatures Limited, excluding
any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding
during the financial year, adjusted for bonus elements in ordinary shares issued during the financial year.
Genetic Signatures Limited – Annual Report 2024
44
Notes to the Consolidated
Financial Statements
Note 1. Material accounting policy information (continued)
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the
after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted
average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares.
Goods and Services Tax ('GST') and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not
recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part of
the expense.
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 tax authority is included in other receivables or other payables in the statement of financial
position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities
which are recoverable from, or payable to the tax authority, are presented as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority.
Rounding of amounts
The company is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian Securities and Investments
Commission, relating to 'rounding-off'. Amounts in this report have been rounded off in accordance with that Corporations
Instrument to the nearest thousand dollars, or in certain cases, the nearest dollar.
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 2024. The consolidated
entity has not yet assessed the impact of these new or amended Accounting Standards and Interpretations.
Note 2. Critical accounting judgements, estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect
the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation
to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and
assumptions on historical experience and on other various factors, including expectations of future events, management
believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the
related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment
to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are discussed
below.
Share-based payment transactions
The consolidated entity measures the cost of equity-settled transactions with employees by reference to the fair value of the
equity instruments at the date at which they are granted. The fair value is determined by using the Black-Scholes model taking
into account the terms and conditions upon which the instruments were granted. The accounting estimates and assumptions
relating to equity-settled share-based payments would have no impact on the carrying amounts of assets and liabilities within
the next annual reporting period but may impact profit or loss and equity. Refer to note 36 for further information.
45
Financial Report
Notes to the Consolidated
Financial Statements
Note 2. Critical accounting judgements, estimates and assumptions (continued)
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.
Research and development tax incentive
Judgement is required in determining the value of the research and development tax incentive claim. There are certain
transactions and calculations undertaken during the ordinary course of business for which the ultimate tax determination
may be subject to change. The consolidated entity calculates its research and development claim based on the consolidated
entity’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.
Allowance for expected credit losses
The allowance for expected credit losses assessment requires a degree of estimation and judgement. It is based on the
lifetime expected credit loss, grouped based on days overdue, and makes assumptions to allocate an overall expected credit
loss rate for each group. These assumptions include recent sales experience, historical collection rates and forward-looking
information that is available. The allowance for expected credit losses, as disclosed in note 9, is calculated based on the
information available at the time of preparation. The actual credit losses in future years may be higher or lower.
Provision for impairment of inventories
The provision for impairment of inventories assessment requires a degree of estimation and judgement. The level of the
provision is assessed by taking into account the recent sales experience, the ageing of inventories and other factors that affect
inventory obsolescence.
Estimation of useful lives of assets
The consolidated entity determines the estimated useful lives and related depreciation and amortisation charges for its
property, plant and equipment and finite life intangible assets. The useful lives could change significantly as a result of technical
innovations or some other event. The depreciation and amortisation charge will increase where the useful lives are less than
previously estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold will be written off
or written down.
Impairment of intangible assets
The consolidated entity assesses impairment of financial assets at each reporting date by evaluation conditions specific to the
consolidated entity and to the particular asset that may lead to impairment. If an impairment trigger exists, the recoverable
amount of the asset is determined.
Going concern
The Group applies judgement to assess whether it is appropriate for the Group to be reported as a going concern, by
considering the business activities and the Group’s principal risks facing the business and uncertainties. The review involves
and a series of financial forecasts, which include a review of current performance and forecasts of revenue across all sales
channels combined with ongoing expenditure, including capital expenditure.
Note 3. Operating segments
Identification of reportable operating segments
The consolidated entity is organised into three operating segments based on regions: Asia Pacific, EMEA, Americas. These
operating segments are based on the internal reports that are reviewed and used by the Board of Directors (who are identified
as the Chief Operating Decision Makers ('CODM')) in assessing performance and in determining the allocation of resources.
There is no aggregation of operating segments.
The CODM reviews net profit or loss. The accounting policies adopted for internal reporting to the CODM are consistent with
those adopted in the financial statements.
The information reported to the CODM is on a monthly basis.
Genetic Signatures Limited – Annual Report 2024
46
Notes to the Consolidated
Financial Statements
Note 3. Operating segments (continued)
Types of products and services
The principal products and services of each of these operating segments are as follows:
Reagents & consumables
The manufacture and sale of 3base® EasyScreen™ test kits for use in pathology
laboratories to aid in the diagnosis of infectious diseases.
Equipment sales and rental
The provision of equipment to customers, either as an outright sale or under a lease
arrangement, for use with the diagnostic test kits.
Service contracts
The provision of service and maintenance for equipment used by customers.
Intersegment transactions
Intersegment transactions are made at market rates. The group's operations are primarily based in Australia, with sales and
support teams in the UK, Germany, and the United States. Intersegment transactions are eliminated on consolidation.
Intersegment receivables, payables and loans
Intersegment loans are initially recognised at the consideration received. Intersegment loans receivable and loans payable
that earn or incur non-market interest are not adjusted to fair value based on market interest rates. Intersegment loans are
eliminated on consolidation.
Major customers
During the year ended 30 June 2024 two customers (2023: two) that each contributed over 10% of the consolidated entity’s
external revenue.
Operating segment information
Asia
Pacific
EMEA
Americas
Total
Consolidated - 2024
$'000
$'000
$'000
$'000
Revenue
Sales to external customers
8,695
1,048
23
9,766
Intersegment sales
312
60
10
382
Total sales revenue
9,007
1,108
33
10,148
Other revenue
-
-
-
-
Total segment revenue
9,007
1,108
33
10,148
Intersegment eliminations
(382)
Unallocated revenue:
Other income
Interest revenue
4,002
504
Total revenue
14,272
Loss before income tax expense
(17,862)
Income tax expense
-
Loss after income tax expense
(17,862)
Assets
Segment assets
93,164
2,711
3,994
99,869
Intersegment eliminations
(32,582)
Total assets
67,287
Liabilities
Segment liabilities
(6,248)
(11,875)
(22,462)
(40,585)
Intersegment eliminations
34,401
Total liabilities
(6,184)
47
Financial Report
Notes to the Consolidated
Financial Statements
Note 3. Operating segments (continued)
Asia
Pacific
EMEA
Americas
Total
Consolidated - 2023
$'000
$'000
$'000
$'000
Revenue
Sales to external customers
15,351
1,588
-
16,939
Intersegment sales
880
33
393
1,306
Total sales revenue
16,231
1,621
393
18,245
Other revenue
-
-
-
-
Total segment revenue
16,231
1,621
393
18,245
Intersegment eliminations
(1,306)
Unallocated revenue:
Other income
4,574
Interest revenue
542
Total revenue
22,055
Loss before income tax expense
(14,052)
Income tax expense
-
Loss after income tax expense
(14,052)
Assets
Segment assets
67,177
3,347
2,800
73,324
Intersegment eliminations
(24,246)
Total assets
49,078
Liabilities
Segment liabilities
5,911
9,381
16,202
31,494
Intersegment eliminations
(25,330)
Total liabilities
6,164
Note 4. Revenue
Consolidated
2024
2023
$'000
$'000
Revenue from contracts with customers
Reagents & consumables
9,295
16,496
Equipment sales & rental
408
443
Service contracts
63
-
Revenue
9,766
16,939
Genetic Signatures Limited – Annual Report 2024
48
Notes to the Consolidated
Financial Statements
Note 4. Revenue (continued)
Disaggregation of revenue
The disaggregation of revenue from contracts with customers is as follows:
Asia
Pacific
EMEA
Americas
Total
Consolidated - 2024
$'000
$'000
$'000
$'000
Major revenue lines
Reagents & consumables
8,293
980
23
9,296
Equipment sales & rental
339
68
-
407
Service contracts
63
-
-
63
8,695
1,048
23
9,766
Timing of revenue recognition
Goods transferred at a point in time
8,632
1,048
23
9,703
Services transferred over time
63
-
-
63
8,695
1,048
23
9,766
Asia
Pacific
EMEA
Americas
Total
Consolidated - 2023
$'000
$'000
$'000
$'000
Major revenue lines
Reagents & consumables
14,989
1,507
-
16,496
Equipment sales & rental
362
81
-
443
Service contracts
-
-
-
-
15,351
1,588
-
16,939
Timing of revenue recognition
Goods transferred at a point in time
15,351
1,588
-
16,939
Services transferred over time
-
-
-
-
15,351
1,588
-
16,939
Note 5. Other income
Consolidated
2024
2023
$'000
$'000
Research & Development Tax Incentive
3,992
4,422
Other
10
152
Other income
4,002
4,574
49
Financial Report
Notes to the Consolidated
Financial Statements
Note 6. Expenses
Consolidated
2024
2023
$'000
$'000
Profit before income tax includes the following specific expenses:
Depreciation
Plant and equipment
1,802
1,526
Buildings right-of-use assets
193
-
Total depreciation
1,995
1,526
Finance costs
Interest and finance charges paid/payable on lease liabilities
35
1
Net foreign exchange loss
Net foreign exchange loss
106
124
Leases
Variable lease payments
592
730
Superannuation expense
Defined contribution superannuation expense
976
878
Share-based payments expense
Share-based payments expense
902
1,973
Research costs
Scientific consumables & clinical trials
3,375
5,119
Write off of assets
Inventories
962
644
Note 7. Income tax expense
Consolidated
2024
2023
$'000
$'000
Numerical reconciliation of income tax expense and tax at the statutory rate
Loss before income tax expense
(17,862)
(14,052)
Tax at the statutory tax rate (2024: AU 25% US 21% UK 25% Germany 23%; 2023: AU 25%
US 21% UK 19% Germany 23%)
(4,215)
(3,102)
Tax effect amounts which are not deductible/(taxable) in calculating taxable income:
Non-deductible items
2,716
3,243
Tax losses not brought to account
2,656
1,653
Tax losses applied
-
(320)
Research and development tax credit
(998)
(1,105)
Temporary differences not brought to account
(159)
(369)
Income tax expense
-
-
The consolidated entity has recorded a loss during the year ended 30 June 2024. The consolidated entity currently has carried
forward losses of $4,907,042 from prior years in respect to its Australian operations, approximately US$6,247,347 in respect
to its North American operations, and GBP 2,940,222 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
Genetic Signatures Limited – Annual Report 2024
50
Notes to the Consolidated
Financial Statements
Note 7. Income tax expense (continued)
consolidated entity derives sufficient taxable income in order to utilise these losses. It is currently not known with sufficient
certainty how the consolidated entity’s trade will transpire for the FY24 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 8. Current assets - cash and cash equivalents
Consolidated
2024
2023
$'000
$'000
Cash at bank and on hand
3,852
6,349
Cash on deposit
32,400
10,000
36,252
16,349
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 1.25% (2023: between nil% and 1.35%).
Note 9. Current assets - trade and other receivables
Consolidated
2024
2023
$'000
$'000
Trade receivables
3,268
3,194
Less: Allowance for expected credit losses
(20)
-
3,248
3,194
Other receivables
1,233
1,170
Interest receivable
43
22
4,524
4,386
Allowance for expected credit losses
The consolidated entity has recognised a loss of $20,000 in profit or loss in respect of the expected credit losses for the year
ended 30 June 2024.
The ageing of the receivables and allowance for expected credit losses provided for above are as follows:
Expected credit loss rate
Carrying amount
Allowance for expected
credit losses
2024
2023
2024
2023
2024
2023
Consolidated
%
%
$'000
$'000
$'000
$'000
Not overdue
0.2%
-%
2,249
2,416
5
-
0 to 30 days overdue
0.5%
-%
890
689
4
-
31 to 60 days overdue
2.0%
-%
13
23
-
-
61 to 90 days overdue
3.5%
-%
-
66
-
-
91 to 120 days overdue
5.0%
-%
15
-
1
-
Over 120 days overdue
10.0%
-%
101
-
10
-
3,268
3,194
20
-
51
Financial Report
Notes to the Consolidated
Financial Statements
Movements in the allowance for expected credit losses are as follows:
Consolidated
2024
2023
$'000
$'000
Opening balance
-
258
Additional provisions recognised
20
-
Receivables written off during the year as uncollectable
-
-
Unused amounts reversed
-
(258)
Closing balance
20
-
Note 10. Current assets - inventories
Consolidated
2024
2023
$'000
$'000
Raw materials
4,306
5,536
Work in progress
328
600
Finished goods
3,231
3,347
Stock in transit
20
4
Provision for obsolescence
(1,164)
(734)
6,721
8,753
Note 11. Current assets – government grant receivable
Consolidated
2024
2023
$'000
$'000
Research and development tax concession
5,055
6,877
Note 12. Non-current assets - plant and equipment
Consolidated
2024
2023
$'000
$'000
Plant and equipment - at cost
14,157
12,688
Less: Accumulated depreciation
(6,874)
(5,464)
7,283
7,224
7,283
7,224
Genetic Signatures Limited – Annual Report 2024
52
Notes to the Consolidated
Financial Statements
Note 12. Non-current assets - property, plant and equipment (continued)
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Plant and
equipment
Total
Consolidated
$'000
$'000
Balance at 1 July 2022
6,733
6,733
Additions
1,932
1,932
Disposals
(78)
(78)
Foreign exchange movement
146
146
Depreciation expense
(1,509)
(1,509)
Balance at 30 June 2023
7,224
7,224
Additions
1,978
1,978
Disposals
(123)
(123)
Foreign exchange movement
6
6
Depreciation expense
(1,802)
(1,802)
Balance at 30 June 2024
7,283
7,283
Note 13. Non-current assets - right-of-use assets
Consolidated
2024
2023
$'000
$'000
Land and buildings - right-of-use
1,386
-
Less: Accumulated depreciation
(193)
-
1,193
-
Plant and equipment - right-of-use
12
-
Less: Accumulated depreciation
(1)
-
11
-
1,204
-
Additions to the right-of-use assets during the year were $1,398,000.
The consolidated entity leases land and buildings for its offices and laboratories under agreements of three years with, in
some cases, options to extend. The leases have various escalation clauses. On renewal, the terms of the leases are
renegotiated. The consolidated entity also leases plant and equipment under agreements of five years.
The consolidated entity leases office equipment under agreements of less than two years. These leases are either short-term
or low-value, so have been expensed as incurred and not capitalised as right-of-use assets.
53
Financial Report
Notes to the Consolidated
Financial Statements
Note 14. Non-current assets – intangible assets
Consolidated
2024
2023
$'000
$'000
Instrument development - at cost
4,378
4,109
Less: Accumulated amortisation
-
-
4,378
4,109
Software - at cost
2,082
1,592
Less: Accumulated amortisation
(212)
(212)
1,870
1,380
6,248
5,489
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Instrument
development
Software
Total
Consolidated
$'000
$'000
$'000
Balance at 1 July 2022
978
668
1,646
Additions
5,055
1,244
6,299
R&D tax incentive
(1,924)
(532)
(2,456)
Balance at 30 June 2023
4,109
1,380
5,489
Additions
964
859
1,823
R&D tax incentive
(695)
(369)
(1,064)
Balance at 30 June 2024
4,378
1,870
6,248
The software relates to the development of improvements to GS-Call software which will be incorporated in the instrument
currently being developed. No amortisation of software is recorded until the development work is in a form from which future
economic benefit may be derived. Instrument development relates to the development of the NextGeneration Instrument.
This project was placed on hold during FY2024 to reduce cash outflows as a result of the reduction in revenue during the
year.
Capitalised R&D tax incentives are directly attributable to capitalised development costs during the year.
Note 15. Current liabilities - trade and other payables
Consolidated
2024
2023
$'000
$'000
Trade payables
3,065
3,770
Other payables
665
1,033
3,730
4,803
Refer to note 23 for further information on financial instruments.
Genetic Signatures Limited – Annual Report 2024
54
Notes to the Consolidated
Financial Statements
Note 16. Current liabilities - lease liabilities
Consolidated
2024
2023
$'000
$'000
Lease liability
392
-
Refer to note 23 for further information on financial instruments.
Note 17. Current liabilities - employee benefits
Consolidated
2024
2023
$'000
$'000
Employee benefits
1,112
1,266
Note 18. Non-current liabilities - lease liabilities
Consolidated
2024
2023
$'000
$'000
Lease liability
829
-
Refer to note 23 for further information on financial instruments.
Note 19. Non-current liabilities - employee benefits
Consolidated
2024
2023
$'000
$'000
Employee benefits
121
95
Note 20. Equity - issued capital
Consolidated
2024
2023
2024
2023
Shares
Shares
$'000
$'000
Ordinary shares - fully paid
215,273,491
143,405,996
119,430
84,438
55
Financial Report
Notes to the Consolidated
Financial Statements
Note 20. Equity - issued capital (continued)
Movements in ordinary share capital
Details
Date
Shares
Issue price
$'000
Balance
1 July 2022
143,385,996
84,428
Issue of shares on the exercise of options
24 October 2022
20,000
$0.53
11
Share issue transaction costs, net of tax
(1)
Balance
30 June 2023
143,405,996
84,438
Issue of shares
29 December 2023
21,510,899
$0.37
7,959
Issue of shares
25 January 2024
21,565,747
$0.37
7,979
Issue of shares on the exercise of options
3 May 2024
40,000
$0.52
21
Issue of shares
13 June 2024
28,750,849
$0.75
21,563
Share issue transaction costs, net of tax
(2,530)
Balance
30 June 2024
215,273,491
119,430
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the company in proportion
to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the company
does not have a limited amount of authorised capital.
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share
shall have one vote.
Share buy-back
There is no current on-market share buy-back.
Capital risk management
The consolidated entity's objectives when managing capital is to safeguard its ability to continue as a going concern, so that
it can provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital structure.
Management effectively manages the consolidated entity’s capital by assessing the entity’s financial risks and adjusting its
capital structure in response to changes in these risks and the market.
The consolidated entity is not subject to any financing arrangements covenants externally imposed capital requirements.
The capital risk management policy remains unchanged from the 30 June 2023 Annual Report.
Note 21. Equity - reserves
Consolidated
2024
2023
$'000
$'000
Foreign currency reserve
423
266
Share-based payments reserve
8,259
7,357
8,682
7,623
Foreign currency reserve
The reserve is used to recognise exchange differences arising from the translation of the financial statements of foreign
operations to Australian dollars. It is also used to recognise gains and losses on hedges of the net investments in foreign
operations.
Genetic Signatures Limited – Annual Report 2024
56
Notes to the Consolidated
Financial Statements
Note 21. Equity - reserves (continued)
Share-based payments reserve
The reserve is used to recognise the value of equity benefits provided to: employees and directors as part of their
remuneration under an Employee Share Plan, directors on terms determined by the Board and approved by shareholders;
and other parties as part of their compensation for services.
Movements in reserves
Movements in each class of reserve during the current and previous financial year are set out below:
Foreign
Share-based
currency
payments
Total
Consolidated
$'000
$'000
$'000
Balance at 1 July 2022
85
5,384
5,469
Foreign currency translation
181
-
181
Forfeiture of share-based payments
-
(137)
(137)
Share-based payments expense
-
2,110
2,110
Balance at 30 June 2023
266
7,357
7,623
Foreign currency translation
157
-
157
Forfeiture of share-based payments
-
(421)
(421)
Share-based payments expense
-
1,323
1,323
Balance at 30 June 2024
423
8,259
8,682
Note 22. Equity – accumulated losses
Consolidated
2024
2023
$'000
$'000
Accumulated losses at the beginning of the financial year
(49,147)
(35,095)
Loss after income tax expense for the year
(17,862)
(14,052)
Accumulated losses at the end of the financial year
(67,009)
(49,147)
Note 23. Financial instruments
Financial risk management objectives
The consolidated entity's activities expose it to a variety of financial risks: market risk (including foreign currency risk, price
risk and interest rate risk), credit risk and liquidity risk. The consolidated entity's overall risk management program focuses on
the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the
consolidated entity. The consolidated entity uses different methods to measure different types of risk to which it is exposed.
These methods include sensitivity analysis in the case of interest rate, foreign exchange and other price risks and ageing
analysis for credit risk.
Risk management is carried out by senior finance executives ('finance') under policies approved by the Board of Directors
('the Board'). These policies include identification and analysis of the risk exposure of the consolidated entity and appropriate
procedures, controls and risk limits. Finance identifies and evaluates financial risks within the consolidated entity's operating
units. Finance reports to the Board on a monthly basis.
Market risk
Foreign currency risk
The consolidated entity undertakes certain transactions denominated in foreign currency and is exposed to foreign currency
risk through foreign exchange rate fluctuations.
57
Financial Report
Notes to the Consolidated
Financial Statements
Note 23. Financial instruments (continued)
Foreign exchange risk arises from future commercial transactions and recognised financial assets and financial liabilities
denominated in a currency that is not the entity's functional currency. The risk is measured using sensitivity analysis and cash
flow forecasting.
The carrying amount of the consolidated entity's foreign currency denominated financial assets and financial liabilities at the
reporting date were as follows:
Assets
Liabilities
2024
2023
2024
2023
Consolidated
$'000
$'000
$'000
$'000
US dollars
171
223
696
1,346
Euros
191
90 442
205
Great Britain Pounds
231
391
195
564
593
704
1,333
2,115
The consolidated entity had net liabilities denominated in foreign currencies of $740,000 (assets of $593,000 less liabilities of
$1,333,000) as at 30 June 2024 (2023: $1,411,000 (assets of $704,000 less liabilities of $2,115,000)). Based on this exposure,
had the Australian dollar weakened by 10%/strengthened by 10% (2023: weakened by 10%/strengthened by 10%) against
these foreign currencies with all other variables held constant, the consolidated entity's profit before tax for the year would
have been $74,000 lower/$74,000 higher (2023: $141,000 lower/$141,000 higher) and equity would have been $74,000
lower/$74,000 higher (2023: $141,000 lower/$141,000 higher). The actual foreign exchange loss for the year ended 30 June
2024 was $106,000 (2023: loss of $124,000).
Price risk
The consolidated entity is not exposed to any significant price risk.
Interest rate risk
The consolidated entity's main interest rate risk arises from cash assets invested at variable rates.
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the
consolidated entity. The maximum exposure to credit risk at the reporting date to recognised financial assets is the carrying
amount, net of any provisions for impairment of those assets, as disclosed in the statement of financial position and notes to
the financial statements. The consolidated entity does not hold any collateral.
The consolidated entity has adopted a lifetime expected loss allowance in estimating expected credit losses to trade
receivables through the use of a provisions matrix using fixed rates of credit loss provisioning. These provisions are considered
representative across all customers of the consolidated entity based on recent sales experience, historical collection rates
and forward-looking information that is available.
Generally, trade receivables are written off when there is no reasonable expectation of recovery. Indicators of this include the
failure of a debtor to engage in a repayment plan, no active enforcement activity and a failure to make contractual payments
for a period greater than 1 year.
Liquidity risk
Vigilant liquidity risk management requires the consolidated entity to maintain sufficient liquid assets (mainly cash and cash
equivalents) and available borrowing facilities to be able to pay debts as and when they become due and payable.
The consolidated entity manages liquidity risk by maintaining adequate cash reserves and available borrowing facilities by
continuously monitoring actual and forecast cash flows and matching the maturity profiles of financial assets and liabilities.
Genetic Signatures Limited – Annual Report 2024
58
Notes to the Consolidated
Financial Statements
Note 23. Financial instruments (continued)
Remaining contractual maturities
The following tables detail the consolidated entity's remaining contractual maturity for its financial instrument liabilities. The
tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which
the financial liabilities are required to be paid. The tables include both interest and principal cash flows disclosed as remaining
contractual maturities and therefore these totals may differ from their carrying amount in the statement of financial position.
Weighted
average
interest rate
1 year or less
Between 1
and 2 years
Between 2
and 5 years
Over 5 years
Remaining
contractual
maturities
Consolidated - 2024
%
$'000
$'000
$'000
$'000
$'000
Non-derivatives
Non-interest bearing
Trade payables
-
3,065
-
-
-
3,065
Other payables
-
665
-
-
-
665
Interest-bearing - fixed rate
Lease liability
8%
512
528
318
-
1,358
Total non-derivatives
4,242
528
318
-
5,088
Weighted
average
interest rate
1 year or less
Between 1
and 2 years
Between 2
and 5 years
Over 5 years
Remaining
contractual
maturities
Consolidated - 2023
%
$'000
$'000
$'000
$'000
$'000
Non-derivatives
Non-interest bearing
Trade and other payables
-
3,770
-
-
-
3,770
Other payables
-
1,033
-
-
-
1,033
Interest-bearing - fixed rate
Lease liability
-
-
-
-
-
-
Total non-derivatives
4,803
-
-
-
4,803
The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed above.
Fair value of financial instruments
Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value.
59
Financial Report
Notes to the Consolidated
Financial Statements
Note 24. Key management personnel disclosures
Compensation
The aggregate compensation made to directors and other members of key management personnel of the consolidated entity
is set out below:
Consolidated
2024
2023
$
$
Short-term employee benefits
1,282,831
1,130,730
Post-employment benefits
86,265
70,078
Long-term benefits
10,405
15,514
Share-based payments
196,881
325,442
1,576,382
1,541,764
Note 25. Remuneration of auditors
During the financial year the following fees were paid or payable for services provided by BDO Audit Pty Ltd, the auditor of
the company, its network firms and unrelated firms:
Consolidated
2024
2023
$
$
Audit services – BDO Audit Pty Ltd
Audit or review of the financial statements
110,500
114,500
Other services – BDO Audit Pty Ltd
Tax compliance services
44,987
33,735
Total non-audit services
44,987
33,735
Total audit and non-audit services
155,487
148,235
Note 26. Contingent liabilities
The consolidated entity does not have any material contingent liabilities at year-end (2023: Nil).
Note 27. Commitments
The consolidated entity does not have any material capital commitments at year-end (2023: Nil).
Note 28. Related party transactions
Parent entity
Genetic Signatures Limited is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in note 30.
Key management personnel
Disclosures relating to key management personnel are set out in note 24 and the remuneration report included in the directors'
report.
Transactions with related parties
There were no transactions with related parties at the current and previous reporting date.
Genetic Signatures Limited – Annual Report 2024
60
Notes to the Consolidated
Financial Statements
Note 28. Related party transactions (continued)
Receivable from and payable to related parties
There were no receivables from or payables to related parties at the current and previous reporting date.
Loans to/from related parties
There were no loans to or from related parties at the current and previous reporting date.
Note 29. Parent entity information
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
Parent
2024
2023
$'000
$'000
Loss after income tax
(22,217)
(17,492)
Total comprehensive income
(22,217)
(17,492)
Statement of financial position
Parent
2024
2023
$'000
$'000
Total current assets
47,993
35,659
Total assets
58,451
44,594
Total current liabilities
5,360
5,207
Total liabilities
5,482
5,302
Net assets
52,969
39,292
Equity
Issued capital
119,430
84,438
Reserves
8,257
7,355
Accumulated losses
(74,718)
(52,501)
Total equity
52,969
39,292
Contingent liabilities
The parent entity had no contingent liabilities as at 30 June 2024 and 30 June 2023.
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2024 and 30 June 2023.
Material accounting policy information
The accounting policies of the parent entity are consistent with those of the consolidated entity, as disclosed in note 1, except
for the following:
●
Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity.
●
Dividends received from subsidiaries are recognised as other income by the parent entity and its receipt may be an
indicator of an impairment of the investment.
61
Financial Report
Notes to the Consolidated
Financial Statements
Note 30. Interests in subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following wholly-owned subsidiaries
in accordance with the accounting policy described in note 1:
Ownership interest
Principal place of business /
2024
2023
Name
Country of incorporation
%
%
Genetic Signatures US Ltd
United States of America
100.00%
100.00%
Genetic Signatures UK Ltd
United Kingdom
100.00%
100.00%
Genetic Signatures GmbH
Germany
100.00%
100.00%
Note 31. Events after the reporting period
No matter or circumstance has arisen since 30 June 2024 that has significantly affected, or may significantly affect the
consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial
years.
Note 32. Reconciliation of profit after income tax to net cash from operating activities
Consolidated
2024
2023
$'000
$'000
(Loss) after income tax expense for the year
(17,862)
(14,052)
Adjustments for:
Depreciation and amortisation
1,996
1,526
Inventory provision for obsolescence
431
426
Transfer between inventory and fixed assets
109
119
Bad debts provisions
20
(258)
Share-based payments
902
1,973
Loss on disposal of fixed assets
14
-
Foreign exchange differences
152
-
Change in operating assets and liabilities:
(Increase)/Decrease in trade and other receivables
(174)
496
Decrease/(Increase) in government grant receivable
2,885
(4,421)
Decrease in inventories
1,617
1,027
(Decrease)/Increase in trade and other payables
(83)
506
(Decrease)/Increase in employee benefits
(127)
207
Net cash from operating activities
(10,120)
(12,451)
Note 33. Changes in liabilities arising from financing activities
Lease
liability
Total
Consolidated
$'000
$'000
Balance at 1 July 2022
33
33
Net cash used in financing activities
(33)
(33)
Balance at 30 June 2023
-
-
Acquisition of leases
1,398
1,398
Net cash from/(used in) financing activities
(177)
(177)
Balance at 30 June 2024
1,221
1,221
Genetic Signatures Limited – Annual Report 2024
62
Notes to the Consolidated
Financial Statements
Note 34. Earnings per share
Consolidated
2024
2023
$'000
$'000
Loss after income tax
(17,862)
(14,052)
Loss after income tax attributable to the owners of Genetic Signatures Limited
(17,862)
(14,052)
Number
Number
Weighted average number of ordinary shares used in calculating basic earnings per share
165,264,402
143,399,640
Adjustments for calculation of diluted earnings per share:
Options over ordinary shares
1,076,000
553,500
Weighted average number of ordinary shares used in calculating diluted earnings per share
166,340,402
143,953,140
Cents
Cents
Basic (loss) per share
(10.81)
(9.80)
Diluted (loss) per share
(10.81)
(9.80)
The options are considered to be anti-dilutive as the Group is loss making and are therefore excluded from the weighted
average number of shares used in the calculation of diluted loss per share. These options may become dilutive in the future
periods.
Note 35. Share-based payments
The Equity Incentive Plan has been established by the consolidated entity and approved by shareholders at a general meeting,
whereby the consolidated entity may, at the discretion of the Nomination and Remuneration Committee, grant options over
ordinary shares in the company to certain key management personnel of the consolidated entity. The options are issued for
nil consideration and are granted in accordance with performance guidelines established by the Nomination and Remuneration
Committee.
63
Financial Report
Notes to the Consolidated
Financial Statements
Note 35. Share-based payments (continued)
Set out below are summaries of options granted under the plan:
2024
Balance at
Expired/
Balance at
Exercise
the start of
forfeited/
the end of
Grant date
Expiry date
price
the year
Granted
Exercised
other
the year
13/10/2016
13/10/2031
$0.52
181,000
-
(20,000)
(50,000)
111,000
30/11/2016
30/11/2031
$0.52
100,000
-
-
-
100,000
19/10/2017
19/10/2032
$0.34
272,500
-
-
(30,000)
242,500
28/08/2018
28/08/2033
$0.53
472,500
-
(20,000)
(30,000)
422,500
29/11/2018
29/11/2033
$0.53
200,000
-
-
-
200,000
11/02/2019
11/02/2034
$0.84
150,000
-
-
-
150,000
16/05/2019
16/05/2034
$1.10
150,000
-
-
(150,000)
-
11/11/2019
11/11/2034
$0.98
737,750
-
-
(75,000)
662,750
11/03/2020
11/03/2035
$1.13
50,000
-
-
-
50,000
08/09/2020
08/09/2035
$2.30
1,120,000
-
-
(250,000)
870,000
20/11/2020
20/11/2035
$2.30
250,000
-
-
-
250,000
10/09/2021
10/09/2036
$1.44
1,450,000
-
-
(270,000)
1,180,000
19/11/2021
19/11/2036
$1.44
250,000
-
-
-
250,000
19/11/2021
19/11/2036
$1.39
100,000
-
-
-
100,000
17/06/2022
17/06/2037
$1.51
36,000
-
-
-
36,000
21/09/2022
21/09/2037
$0.93
2,395,000
-
-
(325,000)
2,070,000
16/11/2022
16/11/2037
$0.93
250,000
-
-
-
250,000
29/11/2023
29/11/2038
$0.51
-
250,000
-
-
250,000
30/04/2024
30/04/2039
$0.69
-
500,000
-
-
500,000
8,164,750
750,000
(40,000)
(1,180,000)
7,694,750
Weighted average exercise price
$1.21
$0.63
$0.53
$1.32
$1.15
2023
Balance at
Expired/
Balance at
Exercise
the start of
forfeited/
the end of
Grant date
Expiry date
price
the year
Granted
Exercised
other
the year
13/10/2016
13/10/2031
$0.52
181,000
-
-
-
181,000
30/11/2016
30/11/2031
$0.52
100,000
-
-
-
100,000
19/10/2017
19/10/2032
$0.34
272,500
-
-
-
272,500
28/08/2018
28/08/2033
$0.53
492,500
-
(20,000)
-
472,500
29/11/2018
29/11/2033
$0.53
200,000
-
-
-
200,000
11/02/2019
11/02/2034
$0.84
150,000
-
-
-
150,000
16/05/2019
16/05/2034
$1.10
150,000
-
-
-
150,000
11/11/2019
11/11/2034
$0.98
737,750
-
-
-
737,750
11/03/2020
11/03/2035
$1.13
50,000
-
-
-
50,000
08/09/2020
08/09/2035
$2.30
1,200,000
-
-
(80,000)
1,120,000
20/11/2020
20/11/2035
$2.30
250,000
-
-
-
250,000
10/09/2021
10/09/2036
$1.44
1,520,000
-
-
(70,000)
1,450,000
19/11/2021
19/11/2036
$1.44
250,000
-
-
-
250,000
19/11/2021
19/11/2036
$1.39
100,000
-
-
-
100,000
17/06/2022
17/06/2037
$1.51
36,000
-
-
-
36,000
21/09/2022
21/09/2037
$0.93
-
2,485,000
-
(90,000)
2,395,000
16/11/2022
16/11/2037
$0.93
-
250,000
-
-
250,000
5,689,750
2,735,000
(20,000)
(240,000)
8,164,750
Weighted average exercise price
$1.36
$0.93
$0.53
$1.54
$1.21
Genetic Signatures Limited – Annual Report 2024
64
Notes to the Consolidated
Financial Statements
Note 35. Share-based payments (continued)
Set out below are the options exercisable at the end of the financial year:
2024
2023
Grant date
Expiry date
Number
Number
13/10/2016
13/10/2031
111,000
181,000
30/11/2016
30/11/2031
100,000
100,000
19/10/2017
19/10/2032
242,500
272,500
28/08/2018
28/08/2033
422,500
472,500
29/11/2018
29/11/2033
200,000
200,000
11/02/2019
11/02/2034
150,000
150,000
16/05/2019
16/05/2034
-
150,000
11/11/2019
11/11/2034
662,750
541,500
11/03/2020
11/03/2035
50,000
37,500
08/09/2020
08/09/2035
652,500
560,000
20/11/2020
20/11/2035
187,500
125,000
10/09/2021
10/09/2036
590,000
362,500
19/11/2021
19/11/2036
125,000
62,500
19/11/2021
19/11/2036
50,000
25,000
17/06/2022
17/06/2037
36,000
36,000
21/09/2022
21/09/2037
517,500
-
16/11/2022
16/11/2037
62,500
-
4,159,750
3,276,000
The weighted average share price during the financial year was $0.59 (2023: $0.80).
The weighted average remaining contractual life of options outstanding at the end of the financial year was 11.9 years (2023:
12.5 years).
For the options granted during the current financial year, the valuation model inputs used to determine the fair value at the
grant date, are as follows:
Share price
Exercise
Expected
Dividend
Risk-free
Fair value
Grant date
Expiry date
at grant date
price
volatility
yield
interest rate
at grant date
29/11/2023
29/11/2038
$0.51
$0.51
72.38%
0.00%
4.33%
$0.456
30/04/2024
30/04/2039
$0.72
$0.69
69.53%
0.00%
4.57%
$0.633
65
Financial Report
Consolidated Entity Disclosure Statement
As at 30 June 2024
The following provides information about the subsidiaries included in the consolidated financial statements of Genetics
Signatures as at 30 June 2024.
Determination of Tax Residency
Section 295 (3A) of the Corporation Acts 2001 defines tax residency as having the meaning in the Income Tax Assessment
Act 1997. The determination of tax residency involves judgment as there are currently several different interpretations that
could be adopted, and which could give rise to a different conclusion on residency.
In determining tax residency, the consolidated entity has applied the following interpretations:
Australian tax residency
The consolidated entity has applied current legislation and judicial precedent, including having regard to the Tax
Commissioner's public guidance in Tax Ruling TR 2018/5.
Foreign tax residency
Where necessary, the consolidated entity has used independent tax advisers in foreign jurisdictions to assist in determining
tax residency and ensure compliance with applicable foreign tax legislation.
Place formed /
% of share
Entity name
Entity type
Country of incorporation capital held Tax residency
Genetic Signatures Limited
Body corporate
Australia
100.00% Australia
Genetic Signatures US Ltd
Body corporate
United States of America
100.00% United States of America
Genetic Signatures UK Ltd
Body corporate
United Kingdom
100.00% United Kingdom
Genetic Signatures GmbH
Body corporate
Germany
100.00% Germany
Genetic Signatures Limited – Annual Report 2024
66
67
Directors’ Declaration
In the directors' opinion:
●
the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards, the
Corporations Regulations 2001 and other mandatory professional reporting requirements;
●
the attached financial statements and notes 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 give a true and fair view of the consolidated entity's financial position as at
30 June 2024 and of its performance for the financial year ended on that date;
●
there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due
and payable; and
●
the information disclosed in the consolidated entity disclosure statement required by subsection 295(3A) of the
Corporations Act 2001 is true and correct.
The directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
On behalf of the directors
___________________________
Neil Gunn
Director
30 August 2024
Sydney
Genetic Signatures Limited – Annual Report 2024
68
Independent Auditor’s Report
Level 11, 1 Margaret Street
Sydney NSW 2000
Australia
Tel: +61 2 9251 4100
Fax: +61 2 9240 9821
www.bdo.com.au
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
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 2024, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
of changes in equity and the consolidated statement of cash flows for the year then ended, and notes
to the financial report, including material accounting policy information, the consolidated entity
disclosure statement and the directors’ declaration.
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Act 2001, including:
(i)
Giving a true and fair view of the Group’s financial position as at 30 June 2024 and of its
financial performance for the year ended on that date; and
(ii)
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
Report section of our report. We are independent of the Group in accordance with the Corporations
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
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
ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
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
69
Independent Auditor’s Report
Level 11, 1 Margaret Street
Sydney NSW 2000
Australia
Tel: +61 2 9251 4100
Fax: +61 2 9240 9821
www.bdo.com.au
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.
Revenue recognition
Key audit matter
How the matter was addressed in our audit
As disclosed in Note 4, the Group recognised revenue
of $9,766,000 during the financial year ended 30 June
2024 (2023: $16,939,000)
Given the overall significance of revenue to the Group
as a key performance indicator, we considered this
area to be a key audit matter.
To determine whether revenue was appropriately
accounted for and disclosed within the financial
statements, we performed amongst others, the
following audit procedures:
•
Reviewed whether the revenue recognition policies
are in accordance with Australian Accounting
Standards and the Group’s accounting policies as
described in Note 1.
•
Performed analytical procedures to identify
variances in expectations on revenue recognition
for further investigation.
•
Substantively tested a sample of revenue
transactions throughout the financial year by
tracing sales invoices to supporting sales
documentation, shipping documentation and cash
receipts.
•
Performed detailed cut-off testing to ensure that
revenue transactions around the year end have
been recorded in the correct period.
Carrying value of intangibles
Key audit matter
How the matter was addressed in our audit
As disclosed in Note 14, the Group has an intangibles
balance of $6,248,000 for the year ended 30 June 2024
(2023: $5,489,000).
The valuation of intangible assets is significant to our
audit because of the carrying value in the
Consolidated Statement of Financial Position and the
judgements and estimates required by management in
assessing recoverability.
The group has assessed the recoverable amount
through the assessment of impairment indicators
Our audit procedures for addressing this key audit
matter included, but were not limited to the
following:
•
Reviewed if the internally generated intangible
assets arising from the development have met the
recognition criteria under AASB 138 Intangible
Assets.
•
Agreed a sample of development costs and
software to supporting documentation, ensuring
Genetic Signatures Limited – Annual Report 2024
70
Level 11, 1 Margaret Street
Sydney NSW 2000
Australia
Tel: +61 2 9251 4100
Fax: +61 2 9240 9821
www.bdo.com.au
under AASB 136 Impairment of assets. This process is
judgemental and based on management’s
assumptions, therefore this area is a key audit matter.
any research expenditure was recognised as an
expense when incurred.
•
Reviewed management’s position paper for any
indicators of impairment and critically analysed
the assumptions.
•
Confirmed with third parties that costs were
aligned to the initial scope of the project and that
expenditure to date remained valid, along with the
ability of the project to be completed as specified.
Inventory valuation
Key audit matter
How the matter was addressed in our audit
As disclosed in Note 10, the Group held inventory with
a carrying value of $6,721,000 as at 30 June 2024
(2023: $8,753,000).
Inventory valuation was considered a key audit matter
due to the significant value of these assets in the
Consolidated Statement of Financial Position, the
various locations at which inventory is held and the
key estimates and judgements applied by management
in assessing he net realisable value (“NRV”) of
inventory.
Our audit procedures for addressing this key audit
matter included, but were not limited to the
following:
•
Observed the inventory count procedures at key
locations around the year-end and performed
detailed test counts and compared these to the
underlying inventory records.
•
Evaluated the assumptions applied by management
in assessing potential obsolescence for near-expiry
and slow-moving inventory.
•
Reviewed management’s processes and estimates
for calculating the overhead and labour costs
included within 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.
•
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.
71
Independent Auditor’s Report
Other information
The directors are responsible for the other information. The other information comprises the
information in the Group’s annual report for the year ended 30 June 2024, but does not include the
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
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the Financial Report
The directors of the Company are responsible for the preparation of:
a) the financial report that gives a true and fair view in accordance with Australian Accounting
Standards and the Corporations Act 2001 and
b) the consolidated entity disclosure statement that is true and correct in accordance with the
Corporations Act 2001, and
for such internal control as the directors determine is necessary to enable the preparation of:
i)
the financial report that gives a true and fair view and is free from material misstatement,
whether due to fraud or error; and
ii)
the consolidated entity disclosure statement that is true and correct and is free of misstatement,
whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
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:
Level 11, 1 Margaret Street
Sydney NSW 2000
Australia
Tel: +61 2 9251 4100
Fax: +61 2 9240 9821
www.bdo.com.au
Genetic Signatures Limited – Annual Report 2024
72
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in the directors’ report for the year ended 30 June
2024.
In our opinion, the Remuneration Report of Genetic Signatures Limited, for the year ended 30 June
2024, complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with
Australian Auditing Standards.
BDO Audit Pty Ltd
Gareth Few
Director
Sydney, 30 August 2024
Level 11, 1 Margaret Street
Sydney NSW 2000
Australia
Tel: +61 2 9251 4100
Fax: +61 2 9240 9821
www.bdo.com.au
73
Shareholder Information
The shareholder information set out below was applicable as at 27 August 2024.
Distribution of equitable securities
Analysis of number of equitable security holders by size of holding:
Ordinary shares
Holdings Ranges
Number
of holders
total shares
issued (%)
1 TO 1,000
480
0.10
1,001 TO 5,000
551
0.67
5,001 TO 10,000
254
0.84
10,001 TO 100,000
529
8.56
100,001 AND OVER
191
89.83
Total
2,005
100.00
Holding less than a marketable parcel
328
0.04
Equity security holders
The names of the twenty largest security holders of quoted equity securities are listed below:
Ordinary shares
Shareholder
Number
held
total shares
issued (%)
ASIA UNION INVESTMENTS PTY LTD
43,139,098
19.040%
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
39,532,373
17.448%
UBS NOMINEES PTY LTD
17,710,726
7.817%
BNP PARIBAS NOMS PTY LTD
13,938,023
6.152%
CITICORP NOMINEES PTY LIMITED
11,708,300
5.168%
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
6,099,645
2.692%
MIRRABOOKA INVESTMENTS LIMITED
4,313,513
1.904%
CAPITAL CONCERNS PTY LIMITED
4,032,191
1.780%
BNP PARIBAS NOMINEES PTY LTD
2,689,480
1.187%
BRAHAM CONSOLIDATED PTY LTD
2,636,753
1.164%
WARBONT NOMINEES PTY LTD
1,971,242
0.870%
ASIA UNION INVESTMENTS PTY LTD
1,809,937
0.799%
BNP PARIBAS NOMINEES PTY LTD
1,671,273
0.738%
IDOLLINK PTY LTD
1,596,596
0.705%
RIDDLER FAMILY INVESTMENTS PTY LTD
1,406,013
0.621%
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
1,291,701
0.570%
MR MICHAEL ANDREW WHITING & MRS TRACEY ANNE WHITING
1,237,854
0.546%
QUICKINVEST PTY LTD
1,173,384
0.518%
JULEYU PTY LTD
993,020
0.438%
MR ALISTAIR DAVID STRONG
900,000
0.397%
Total Securities of Top 20 Holdings
159,851,122
70.552%
Genetic Signatures Limited – Annual Report 2024
74
Unquoted equity securities
Number
on issue
Number
of holders
OPTIONS OVER ORDINARY SHARES ISSUED
7,134,750
55
Substantial holders
Substantial holders in the company are set out below:
Ordinary shares
Shareholder
Number
held
total shares
issued (%)
ASIA UNION INVESTMENTS PTY LTD
44,949,035
19.84
PERENNIAL VALUE MANAGEMENT LIMITED
33,476,488
14.77
FIL LIMITED
18,341,646
8.10
REGAL FUNDS MANAGEMENT
14,529,831
6.41
Voting rights
The voting rights attached to ordinary shares are set out below:
Ordinary shares
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a
poll each share shall have one vote.
There are no other classes of equity securities.
75
Directors
Nickolaos Samaras
Michael A Aicher
Neil Gunn
Caroline C Waldron
Stéphane D Chatonsky
Company Secretary
Karl Pechmann
Notice of annual general meeting
The details of the annual general meeting of Genetic Signatures Limited are:
Allens
Level 28
126 Phillip Street
Sydney NSW 2000
9:00am on 20 November 2024
Registered office and
principal place of business
7 Eliza Street
Newtown NSW 2042
Phone: +61 2 9870 7580
Share register
Boardroom Pty Limited
Level 8
210 George Street
Sydney NSW 2000
Phone: +61 2 9290 9600
Auditor
BDO Audit Pty Ltd
Level 11
1 Margaret Street
Sydney NSW 2000
Solicitors
Bird & Bird
Level 22
25 Martin Place
Sydney NSW 2000
Bankers
Commonwealth Bank of Australia
48 Martin Place
Sydney NSW 2000
Stock exchange listing
Genetic Signatures Limited shares are listed on the
Australian Securities Exchange (ASX code: GSS)
Website
www.geneticsignatures.com
Corporate Governance Statement
www.geneticsignatures.com/au/investors/corporate-governance/
Company Directory
Genetic Signatures Limited – Annual Report 2024
76
77
Notes
Genetic Signatures Limited – Annual Report 2024
78
79
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: EMEA@geneticsignatures.com
P +44 330 828 0813 (English)
P +49 32 22109 2834 (German)
Americas
E: americas@geneticsignatures.com
P: +1 800 687 4118