ANNUAL REPORT 2021
CONTENTS
Key Statistics ...................................................................................... 1
Chairman’s Letter ............................................................................ 2
Financial Report ............................................................................... 6
Directors’ Report ............................................................................. 7
Auditor’s Independence Declaration ..................................... 21
Consolidated Statement of Profit or Loss
and Other Comprehensive Income .........................................22
Consolidated Statement of Financial Position ................ 23
Consolidated Statement of Changes in Equity ............... 24
Consolidated Statement of Cash Flows .............................. 25
Notes to the Consolidated Financial Statements ............ 26
Directors’ Declaration ................................................................. 45
Independent Auditor’s Report ................................................ 46
Corporate Governance Statement ........................................ 49
ASX Additional Information ..................................................... 50
Corporate Directory .................................................................... 53
ii
INVEX THERAPUTICS LTD KEY STATISTICS
A$1.6bn
3.4%
>90%
the annual
the estimated
percentage of IIH patients
Total Addressable Market
growth in IIH incidence
who suffer headaches that
for IIH in Europe and the
per annum
are progressively more
United States
severe and frequent
2.7days
40%
ZERO
average length of stay
the percentage of
number FDA/EMA
in hospital for an IIH
IIH patients who have
cleared drug therapies
admitted patient
repeated hospital
for the treatment of IIH
admissions
37%
18-21%
7/10yrs
the reduction in headache
reduction in intracranial
market exclusivity
days per month from
pressure for IIH patients
– FDA/EMA orphan
Invex Phase II trial of
treated with Exenati-
drug designation of
Exenatide in IIH
de in Invex Phase II trial
Exenatide in IIH
versus placebo
versus placebo
£462M
4.7x
45%
cost of IIH Per Annum
increase in emergency
of IIH patients felt
to the UK healthcare
IIH surgeries during the
life was harder under
system by 2030
UK COVID-19
lockdown
UK lockdown
1
ANNUAL REPORT 2021 CHAIRMAN’S LETTER
On behalf of the Board of Invex
There are currently no approved
the Company’s commercial
Therapeutics Ltd (Invex, the
treatments for IIH, repesenting an
opportunity in IIH by virtue of
Company), I am pleased to
attractive market for Presendin™
ensuring our in-market pricing
present the Invex Annual Report
upon clinical and regulatory
strategies and a significant margin
to shareholders for the year
success. We are therefore excited
based on our commercial supply
ended 30 June 2021 (FY21).
by our prospects in IIH.
pricing suffient to attract sales and
marketing partners, upon clinical
Our focus during the year has been
As investors will appreciate,
and regulatory success.
to leverage the very strong Phase
we are re-purposing Exenatide
II clinical trial data for Exenatide
(currently marketed as Byetta®
In December, Invex successfully
in the treatment of Idiopathic
and Bydureon® in the treatment of
concluded its protocol assistance
Intracranial Hypertension (IIH)
Type II diabetes) for IIH for which
process with EMA. Overall the
by seeking regulatory advice and
we have obtained orphan drug
EMA were supportive of a single
input from the European Medicines
designation in both the United
pivotal Phase III trial as sufficient
Agency (EMA) and US Food and
States and Europe. As such,
for registration. The EMA agreed
Drug Adminsitration (FDA) for
our path to market and market
to a study design that would
a Phase III trial of a proprietary
position is accelerated, by our
compare Presendin™ to placebo in
formulation of Exenatide
ability to rely on existing safety
IIH patients and require Presendin™
(trademarked Presendin™). IIH is
and toxicity data from these
to demonstrate a reduction in a
a chronic condition that develops
already approved formulations
clinically meaningful endpoint
predominately in obsese women
of Exenatide and the potential to
such as monthly headache days,
of child bearing age, where
require one well-designed Phase III
as well as a reduction in ICP. In
intracranial pressure (ICP) in
trial to file a marketing application
parallel and with the benefit of
the brain elevates siginficantly,
for Presendin™.
the EMA protocol assistance,
resulting in disabling daily
headaches and in some cases
Operations
permanent vision loss.
the Company submitted a Phase
III study protocol and statistical
analysis plan (SAP) to the FDA in
Our small, dedicated team
March 2021. This was a significant
Invex estimates the IIH annual
made significant progress in
achievement by the team.
addressable market in the United
collaboration with our key
States (US) and European Union
scientific, medical and regulatory
In April, Invex was granted a Type
(EU) to be around A$1.6 billion,
advisors as we sought scientific
C meeting by the FDA Division
representing a treatable patient
and Phase III study protocol
of Neurology to review and
population of approximately
advice from the EMA and FDA.
provide written responses on
92,000 patients (based on
In addition, we progressed
the Company’s planned Phase III
prevalence). IIH is an orphan
manufacturing discussions with
clinical program for Presendin™. In
disease, with an incidence
several contract manufacturing
June 2021, Invex received the Type
growing at 3.4% per annum. IIH
organisations (CMOs) capable
C meeting response from the FDA.
results in a material deterioration
of producing Presendin™
The FDA recommended Invex
of patients quality of life and
for clinical supply, and more
consider a clinically meaningful
repeat hospitalisations costing
particularly, commercial supply
effect on visual function, such as
government healthcare systems
upon regulatory clearance(s).
Perimetric Mean Deviation (PMD)
significantly.
This process is ongoing; and the
– a measure of change in the
Company anticipates signing
patient’s visual field - as a primary
an agreement that preserves
endpoint to support an indication
2
INVEX THERAPUTICS LTD for Presendin™ in IIH. The FDA was
COVID-19 has and continues to
Financials
open to Invex providing proposals
negatively impact IIH patients.
for establishing the clinically
Professor Sinclair (Invex Chief
The Company recorded a net
meaningful effect of Presendin™
Scientific Officer and Medical
loss after tax of $2.284 million
on visual function. With respect
Director) recently published
for the year ended 30 June 2021
to ICP, the FDA considered
a study that showed 4.7 fold
(FY21), a decrease of 32% on
this measure as an appropriate
increase in emergency surgical
the prior corresponding period
secondary endpoint for a
interventions to avoid permanent
(pcp). This was largely due to
registration trial, but not a primary
vision loss in IIH patients under
lower R&D costs of $1.139 million
endpoint that would support
lockdown in the UK. There was
(FY20: $1.591 million) as a result
approval of Presendin™ in IIH. At
a 367% increase in surgical
of the additional time required to
the end of the reporting period,
interventions due to impaired
progress drug manufacturing and
the Company has and continues
access to emergency care, delayed
the Phase III clinical program. In
to meet with its key regulatory and
routine waiting times and lifestyle
addition, share-based payment
clinical advisors to determine the
changes under lockdown. While
expenses of $0.562 million (FY20:
best design for a Phase III study
a second IIH survey in the UK
$0.983 million) were recognised,
of Presendin™ in IIH which would
highlighted the significant quality
with a one-off impairment write
provide Invex with the broadest
of life impact on IIH patients under
down and capital raising expenses
possible commercial opportunity.
lockdown conditions with 45% of
reported in the previous period.
COVID-19
IIH patients feeling that living with
IIH was harder with significant
challenges to access to medical
The Coronavirus (COVID-19)
care.
pandemic declared in March
2020 persisted throughout the
Such multi-city lockdowns during
2021 financial year with rolling
COVID-19 continue to highlight
lockdowns, particularly in Europe.
the significant market need for
While COVID-19 has not adversely
new effective (non-surgical)
impacted the Company financially
therapies for IIH patients outside
(to 30 June 2021), the Company’s
of a hospital.
quasi-virtual operation model
meant that Invex experienced
significant delays in a number of
its lead-in activities required for
the commencement of its planned
Phase III trial in IIH. Notably,
there were delays in obtaining the
necessary third-party laboratory
access to complete the formulation
work for Presendin™.
Such multi-city lockdowns during
COVID-19 have highlighted the
significant market need for new
effective (non-surgical) therapies
for IIH patients outside of a
hospital setting.
3
ANNUAL REPORT 2021 Importantly, the Company is
Intellectual Property
The patent would provide
effectively structured as global
protection until August 2035, an
virtual business model, with a small
Intellectual Property (IP) is key to
additional barrier to entry over
number of highly experienced
Invex’s business. Our orphan drug
and above market exclusivity
executives and employees based
designations for Exenatide in IIH in
provided by the Company’s
in the UK utilising the significant
both the US and Europe provides
US and European orphan drug
and additional expertise of clinical,
Invex with seven and ten years
designations for Exenatide in IIH.
regulatory and manufacturing
market exclusivity, respectively,
Additional patents are pending
consultants, as required, to
upon regulatory clearance being
for other key territories, including
progress our key clinical program
granted. During the reporting
the European Union and Australia,
in Europe and the United States.
period Invex continued to make
which the Company expects will
solid progress in expanding its
eventually be granted. Additional
The Company remains in a strong
patent and other intellectual
patents covering formulations of
financial position with cash and
property protection for Exenatide
Exenatide have been filed and are
cash equivalents of $32.7 million as
in pressure related disorders of the
currently pending.
at 30 June 2021, which is sufficient
brain, including IIH, as well as the
to complete a Phase III pivotal trial
Company’s trademark, Presendin™.
During the year, Invex’s
for Presendin™ for registration
trademark - Presendin™ - was
purposes in IIH.
In November 2020, the Company
formally registered by the US
received formal correspondence
Patent and Trademark Office
from the United States Patent and
in April (Reg. No. 6,317,927),
Trademark Office (USPTO) on the
with additional registrations
issuance of a US patent (Patent
granted by the European Union
No. 10,835,579) for Invex covering
Intellectual Property Office (Reg.
the use of GLP1 receptor agonists,
No. 1558488) for Europe and IP
including Exenatide, in reducing
Australia (Reg. No. 2133540) in
elevated intracranial pressure (ICP)
Australia.
in a given subject.
The Company remains in a
strong financial position with
cash and cash equivalents of
$32.7 MILLION as at 30 June 2021,
which is sufficient to complete a
Phase III pivotal trial for Presendin™
for registration purposes in IIH.
4
Corporate Governance
During the year, we strenghtened
the capability and expertise of the
Board with the appointment of
additional experienced directors
to the Company; Dr Tom Duthy,
Executive Director and Dr Megan
Baldwin, Non-executive Director.
Dr Tom Duthy is currently the
CEO of Nemean Group Pty Ltd, a
boutique corporate advisory and
investor relations (IR) firm based
in Adelaide, Australia. Dr Duthy
was formerly the Global Head of
Investor Relations & Corporate
INVEX THERAPUTICS LTD Development at Sirtex Medical
Concluding Remarks
Limited, which was sold to CDH
Investments in September 2018
On behalf of the Board I would
for $1.9 billion. Tom has over 17
like to thank our shareholders,
years of direct financial market
IIH patients and key clinician
experience and was a former
and regulatory advisers for their
leading sell-side Healthcare &
support throughout the 2021
Biotechnology analyst at Taylor
financial year. Despite the unique
Collison Limited.
challenges presented by COVID-19,
Invex made substantial progress
Dr Baldwin is CEO and Managing
in the development of Presendin™
Director of Opthea Limited
and remains committed to its
(ASX:OPT; NASDAQ:OPT), a late-
mission of developing innovative
stage biopharmaceutical company
therapies that focus on pressure-
developing a novel therapy to
related disorders of the brain.
address the unmet need in the
As we develop first in indication
treatment of retinal eye diseases,
drugs, such as Presendin™,
including wet age-related macular
we expect to materially grow
degeneration (wet AMD). Under
shareholder value as we achieve
Dr Baldwin’s leadership, Opthea
our clinical, regulatory and
was added to the S&P/ASX 300 in
commerical objectives. The 2022
June 2020 and in October 2020
financial year will be an exciting
completed a $180 million Initial
one for the Company and we
Public Offering (IPO) and listing
look forward to updating our
on the US NASDAQ exchange
shareholders on our progress.
to progress two pivotal Phase III
studies in wet AMD. Dr Baldwin
is an experienced biotechnology
executive, having over 20 years’
experience working on therapeutic
drug development programs for
cancer and ophthalmic indications.
Dr Jason Loveridge
Non-Executive Chairman
5
ANNUAL REPORT 2021 FINANCIAL REPORT
6
INVEX THERAPUTICS LTD Your Directors present their report together with the consolidated financial statements of the Invex
Therapeutics Ltd (Invex or Company) and its controlled entity (Group) for the financial year ended
30 June 2021.
DIRECTORS
The name of the Directors in office for the year ended 30 June 2021 until the date of this report are as
follows. All Directors were in office for the entire year unless otherwise stated.
Dr Jason Loveridge
Non-executive Chairman
Appointed 8 March 2019
Dr Loveridge is a founder of Invex and also CEO of 4SC AG, a German publicly listed oncology company.
He has more than 30 years of international experience across Europe, Asia and the US in senior
management positions in life sciences companies and as an investment professional dealing in both
privately held and publicly traded companies. Additionally, he has substantial transactional experience in
the sale and partnering of biotechnology assets.
Dr Loveridge graduated in Biochemistry and Microbiology from the University of New South Wales,
Australia, and holds a Ph.D. in Biochemistry from the University of Adelaide, Australia. He is also a fellow of
the Royal Society of Medicine. Dr Loveridge is considered an independent Director.
Current Directorships – Member of the Management Board of 4SC AG.
Former Directorships in last three years - Director of Actinogen Medical Limited.
Interests in shares and options – 3,374,246 shares and 800,000 unlisted options.
Professor Alexandra Sinclair
Executive Director – Chief Scientific Officer
Appointed 28 June 2019
Professor Alexandra Sinclair is a founder of Invex Therapeutics and a Clinician Scientist and Neurology
Consultant in the Metabolic Neurology Group at the Institute of Metabolism and Systems Research, College
of Medical and Dental Sciences,The University of Birmingham, UK. She runs the Headache service and
Idiopathic Intracranial Hypertension Service at University Hospital Foundation Trust.
Professor Sinclair is a member of the British Medical Association, UK, the Association of British Neurologists
(ABN), UK and a Fellow of the Royal College of Physicians, London. Professor Sinclair is a member of the
board for the European Headache Federation and is on the scientific committees for the North American
Neuro-Ophthalmology Society (NANOS). She is also a council member for the British Association for the
Study of Headache (BASH). Professor Sinclair is on the MRC Neuroscience and Mental Health Board and
the Midland Neuroscience Teaching and Research Fund Board, as well as being Chair of the Brain Research
UK Scientific Advisory Board. Previously, she was an elected board member of the IHS and was the Deputy
Chair for the Association for British Neurologists grouping for Headache and Pain (ABN AAG). She was on
the research committee for the Association for British Neurologists and was also the previous patron of the
patient charity IIH UK.
Current directorships – None.
Former directorships held in last three years – None.
Interests in shares and options - 2,500,000 shares and 800,000 unlisted options.
7
ANNUAL REPORT 2021Directors’ Report Dr Thomas Duthy
Executive Director
Appointed 1 October 2020
Dr Duthy has over 15 years of direct financial markets experience having worked in sell-side equity research,
and senior executive roles across investor relations and corporate development. Dr Duthy is the Founder
and CEO of Nemean Group Pty Ltd, a boutique corporate advisory and investor relations firm specialising
in delivering value-added services across the life sciences, medical devices, healthcare, technology and
emerging companies sectors.
Prior to establishing Nemean in October 2018, Dr Duthy was the Global Head of Investor Relations &
Corporate Development at Sirtex Medical Limited (ASX:SRX), which was sold to CDH Investments in
September 2018 for A$1.9 billion and remains the largest medical device transaction in Australian corporate
history. Prior to Sirtex, Tom spent ten years as a leading sell-side Healthcare & Biotechnology analyst at
Taylor Collison Limited, focused mainly on small cap companies. He is a Member of the Australian Institute
of Company Directors (MAICD) and the Australasian Investor Relations Association (AIRA).
Current directorships – Respiri Limited.
Former directorships held in last three years – Respiri Limited
Interests in shares and options – 106,923 shares and 800,000 unlisted options.
Dr Megan Baldwin
Non-executive Director
Appointed 16 February 2021
Dr Baldwin is CEO and Managing Director of Opthea Limited (ASX:OPT; NASDAQ:OPT), a late-stage
biopharmaceutical company developing a novel therapy to address the unmet need in the treatment
of retinal eye diseases, including wet age-related macular degeneration (wet AMD). Under Dr Baldwin’s
leadership, Opthea has rapidly advanced its ophthalmology program through Phase I and Phase II clinical
development, was added to the S&P/ASX 300 in June 2020 and in October 2020 completed a $180 million
IPO and listing on the US NASDAQ exchange to progress two pivotal Phase III studies in wet AMD.
Dr Baldwin is an experienced biotechnology executive, having over 20 years’ experience working on
therapeutic drug development programs for cancer and ophthalmic indications. Prior to Opthea, Dr Baldwin
was employed at Genentech (now Roche) as a postdoctoral researcher before moving to Genentech’s
commercial division. Dr Baldwin also serves on the Board of Ausbiotech. Dr Baldwin is considered an
independent Director.
Current directorships – Opthea Limited, Ausbiotech
Former directorships held in last three years – Opthea Limited, Ausbiotech
Interests in shares and options - 400,000 unlisted options.
Mr David McAuliffe
Non-executive Director
Appointed 8 March 2019
Mr McAuliffe is an experienced company director and entrepreneur who has had over twenty years’
experience, mostly in the international biotechnology field. During that time, he was involved in numerous
capital raisings and in-licensing of technologies. He is a founder of several companies in Australia, France
and the United Kingdom, many of which have become public companies. Mr McAuliffe has an Honours
degree in Law, a Bachelor of Pharmacy degree and is the President of the Dyslexia – Speld Foundation WA
(Inc). Mr McAuliffe is considered an independent Director.
Current directorships - 4DS Memory Ltd.
Former directorships held in last three years - None
Interests in shares and options - 3,350,001 shares and 200,000 unlisted options.
8
INVEX THERAPUTICS LTD Directors’ Report (cont.) Ms Narelle Warren
Company Secretary
Non-executive Director - Appointed 25 March 2019, Resigned 1 October 2020
Ms Warren is a Chartered Accountant with over twenty years of corporate advisory, financial management
and company secretarial experience. Ms Warren has coordinated and assisted in numerous corporate
transactions, including acquisitions, divestments and raising funds via private and public equity markets.
She holds both a Bachelor of Laws and Bachelor of Commerce.
PRINCIPAL ACTIVITY
Invex is a biopharmaceutical Group focused on the repurposing of an already approved drug, Exenatide,
for efficacious treatment of neurological conditions derived from or involving raised intracranial pressure
(ICP). The Group’s first program is the development of Presendin™ for IIH, a severe and chronic condition
predominately in females of child bearing age, which can lead to disabling headaches in the vast majority of
patients and permanent vision loss in a small percentage of patients.
The principal activity of the Group during the year has been the reformulation of Exenatide to optimise
the delivery of the drug for patients with IIH, completing regulatory submissions and feedback from global
regulatory bodies including the US Food and Drug Administration (FDA) and the European Medicines
Agency (EMA) on a Phase III clinical trial in IIH, and the prosecution of the Group’s patent portfolio. A Phase
II clinical trial of Exenatide in IIH was completed during the 2020 financial year and the Company continued
to progress its regulatory, manufacturing and reformulation activities throughout the 2021 financial year.
OPERATING RESULTS
The result of the Group for the year ended 30 June 2021 was a loss of $2,283,911 (2020: $3,360,279 loss).
The net loss of the Group predominantly related to Research & Development costs of $1,139,122 associated
with the Phase II clinical trial, intellectual property prosecution, reformulation work, regulatory advice and
planning for a Phase III clinical trial, administration and corporate costs of $740,752 and non-cash items;
share-based payments of $562,723.
REVIEW OF OPERATIONS
The Group is well funded to meet its medium term objectives, including the completion of a Phase III study
for Presendin™, in IIH, drug manufacture and supply for the Group’s planned clinical studies, commercial
supply along with the commencement of a Phase II study for Presendin™ in a second indication.
Highlights include:
•
In July 2020, the Group announced it had received initial Scientific Advice from both the EMA and the
US FDA, regarding its proposed development plans for Presendin™ in IIH. The key highlights of the
feedback were:
– EMA indicated a single pivotal study of Presendin™ compared to placebo would be sufficient to
support a filing for regulatory approval for IIH in Europe.
– The FDA stated they would need more information to evaluate the Company’s proposed design and
provided guidance that two well controlled studies would normally be required to support registration
in the US.
–
Invex’s proposed preclinical and human pharmacokinetic approach was broadly acceptable to both
EMA and the FDA.
– Both regulatory bodies indicated a reduction in monthly headache days of moderate to severe
headaches is a clinically meaningful endpoint.
• During the year, Invex’s trademark - Presendin™ - was formally registered by the US Patent and Trademark
Office in April (Reg. No. 6,317,927), with additional registrations granted by the European Union Intellectual
Property Office (Reg. No. 1558488) for Europe and IP Australia (Reg. No. 2133540) in Australia.
•
In November 2020, the Company successfully registered a trademark for Presendin™ in the European
Union. This follows the successful registration of the same mark in the UK in Q2 CY2020. The Company has
filed for trademark registrations for Presendin™ in additional jurisdictions which are currently pending.
9
ANNUAL REPORT 2021Directors’ Report (cont.) •
•
•
•
•
In November 2020, the Company received formal correspondence from the United States Patent and
Trademark Office (USPTO) on the issuance of a US patent for Invex covering the use of GLP1 receptor
agonists, including Exenatide, in reducing elevated intracranial pressure (ICP) in a given subject.
In December 2020, the Group concluded its protocol assistance process with the EMA. Invex now has
sufficient regulatory input to complete the design of a Phase III trial to support market approval for
Presendin™ in Europe, subject to meeting safety and efficacy requirements.
In March 2021, Invex announced the filing of a pre- Investigational New Drug Application (pre-IND) /
Type B meeting request with the US Food and Drug Administration (FDA) seeking further protocol
assistance on a proposed Phase III clinical trial of Presendin™ in IIH patients.
In April 2021, the Company received notification from the FDA Division of Neurology that it had granted
Invex a Type C meeting based on the statement of purpose, objectives, and proposed agenda. In
addition, the FDA determined that written responses only (WRO) to questions posed by Invex would be
the most appropriate means for responding as part of the Type C meeting.
In June 2021, the FDA provided WRO to the Type C meeting, requesting the Company demonstrate a
clinically meaningful effect on visual function as the primary endpoint of a Phase III study in order to
support regulatory clearance for the treatment of IIH in the United States. The FDA considered ICP an
acceptable secondary endpoint, and overall, had few comments relating to the Company’s planned
measure of monthly headache days and other key headache measures.
• The Group also presented at a number of investor events during the period, including the Bell Potter
Healthcare Conference and the NWR Small Caps conference.
LIKELY DEVELOPMENTS
The Group has continued to lay solid foundations during its second year of operations and is actively
progressing the necessary activities to commence a Phase III registration study of Presendin™ in IIH.
The Group’s main regulatory strategy seeks to harmonise the Phase III design to meet the requirements of
both the EMA and US FDA for registration of Presendin™ in IIH.
The Group expects to appoint a contract manufacturer for production of clinical trial material (and
thereafter commercial supply) in 2021 ahead of initiating further its clinical studies in IIH.
DIVIDENDS
No dividends were paid or recommended by the Directors since the commencement of the year.
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
Other than as outlined above, there were no significant changes in the Group’s state of affairs during the
year.
MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
The impact of the Coronavirus (COVID-19) pandemic is ongoing and while it has not adversely financially
impacted the consolidated entity up to 30 June 2021, it is not practicable to estimate the potential impact,
positive or negative, after the reporting date. The situation is changing rapidly and the Company’s ability to
operate normally is subject to measures imposed by the Australian Government and other countries, such
as maintaining social distancing requirements, quarantine, travel restrictions and other economic stimulus
that may be provided.
No other significant events occurred after balance date which may affect either the Group’s operations or
results of those operations or the Group’s state of affairs.
10
INVEX THERAPUTICS LTD Directors’ Report (cont.) MEETINGS OF DIRECTORS
During the year the following Director meetings were held.
Director
Dr Jason Loveridge
Prof Alexandra Sinclair
Dr Thomas Duthy
Mr David McAuliffe
Dr Megan Baldwin
Ms Narelle Warren
Board Meetings
Number Eligible
to Attend Number Attended
7
7
6
7
3
1
7
7
6
7
3
1
ENVIRONMENTAL REGULATIONS
The Group is not subject to significant environmental regulation in respect of its research and development
activities.
UNISSUED SHARES UNDER OPTION
Unissued ordinary shares of Invex Therapeutics Ltd under option at the date of this report are as follows:
Date Options Granted
Expiry Date
Exercise Price
22 November 2019
22 November 2023
21 January 2020
9 April 2020
20 October 2020
21 January 2023
9 April 2023
20 October 2023
18 November 2020
18 November 2023
8 April 2021
Total
8 April 2024
$0.60
$1.00
$0.60
$1.30
$1.30
$1.10
Number Under
Option
2,200,000
750,000
60,000
400,000
800,000
400,000
4,610,000
INSURANCE OF OFFICERS AND INDEMNITIES
Invex paid a premium to insure the directors and company secretary of the Group.
The liabilities insured are legal costs that may be incurred in defending civil or criminal proceedings that
may be brought against the officers in their capacity as officers of entities in the Group, and any other
payments arising from liabilities incurred by the officers in connection with such proceedings. This does
not include such liabilities that arise from conduct involving a wilful breach of duty by the officers or the
improper use by the officers of their position or of information to gain advantage for them or someone else
or to cause detriment to the Group. It is not possible to apportion the premium between amounts relating
to the insurance against legal costs and those relating to other liabilities.
PROCEEDINGS ON BEHALF OF THE GROUP
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring
proceedings on behalf of the Group, or to intervene in any proceedings to which the Group is a party, for
the purpose of taking responsibility on behalf of the Group for all or part of those proceedings.
No proceedings have been brought or intervened in on behalf of the Group with leave of the Court under
section 237 of the Corporations Act 2001.
11
ANNUAL REPORT 2021Directors’ Report (cont.)
NON-AUDIT SERVICES
The Group may decide to employ its auditor on assignments additional to their statutory audit duties where
the auditor’s expertise and experience with the Group is important.
During the year, other services were performed in addition to their statutory duties. The details of the
amount paid are disclosed in Note 23 of the consolidated financial report.
AUDITOR’S INDEPENDENCE DECLARATION
A copy of the auditors’ independence declaration as required under section 307C of the Corporations Act
2001 is set out on the page following this Directors’ Report.
ADDITIONAL INFORMATION
The statutory key performance indicators of the consolidated entity over the last three years to 30 June
2021 are summarised below:
Sales revenue
EBITDA
EBIT
Loss after income tax
Basic earnings per share
Share price as at 30 June
2021
$
—
(2,283,911)
(2,283,911)
(2,283,911)
(0.03)
0.63
2020
$
—
(3,360,279)
(3,360,279)
(3,360,279)
(0.06)
1.30
2019
$
—
(232,122)
(232,122)
(232,122)
(0.01)
0.40
REMUNERATION REPORT - AUDITED
The remuneration report outlines the remuneration arrangements which were in place during the year and
remain in place as at the date of this report, for the Directors and Key Management Personnel of the Group.
The information provided in this remuneration has been audited as required by section 308(3C) of the
Corporations Act 2001.
KEY MANAGEMENT PERSONNEL
Key Management Personnel are those persons who are responsible for directing and controlling the
activities of the Group. The Board has determined that the key management personnel of the Group are
the Non-executive Directors and Executives of Invex, whose details are set out below. The following Key
Management Personnel during the period unless otherwise stated:
Director
Date of appointment/resignation
Role
Dr Jason Loveridge
Appointed 8 March 2019
Prof Alexandra Sinclair
Appointed 28 June 2019
Dr Thomas Duthy
Dr Megan Baldwin
David McAuliffe
Narelle Warren
Appointed 1 October 2020
Appointed 16 February 2021
Appointed 8 March 2019
Appointed 25 March 2019/Resigned
1 October 2020
Non-executive Chair
Executive Director
Executive Director
Non-executive Director
Non-executive Director
Non-executive Director
Appointed 8 March 2019
Company Secretary
12
INVEX THERAPUTICS LTD Directors’ Report (cont.) REMUNERATION POLICIES
The Board has not elected to establish a remuneration committee. Given the size of the current Board
remuneration matters will be considered and approved by the full Board.
The following items will be considered and discussed as deemed necessary at the Board meetings:
• recommend the terms and conditions of employment for the Executive Directors and Senior Officers;
• undertake a review of the Executive Directors’ performance, at least annually, including setting with the
Executive Directors goals for the coming year and reviewing progress in achieving those goals;
• consider and report on the recommendations of the Executive Directors on the remuneration of all direct
reports; and
• develop and facilitate a process for Board and Director evaluation.
Non-executive Director’s remuneration
The compensation of Non-executive Directors is based on market practice, Director’s duties and the level of
accountability. The compensation policy is designed to attract and retain competent and suitably qualified
Non-executive Directors and aims to align Director’s interests with interests of shareholders. Non-executive
Directors fees are paid a set fee plus statutory superannuation where appropriate, and are reimbursed for
out-of-pocket expenses.
The Chair’s fees are determined independently to the fees of Non-executive Directors based on
comparative roles in the external market.
The base fees are reviewed annually and were last reviewed at a recent Board meeting. Non-executive
Directors’ fees are determined within an aggregate directors’ fee pool limit, which is periodically
recommended for approval by shareholders. The current limit stands at $250,000 per annum and was
approved by shareholders at its first Annual General Meeting of shareholders in November 2019.
A Director may also be paid fees or other amounts as the Directors determine if a Director performs special
duties or otherwise performs services outside the scope of the ordinary duties of a Director.
Executive remuneration
In determining executive remuneration, the Board aims to ensure that remuneration practices are:
• competitive and reasonable, enabling the company to attract and retain key talent;
• aligned to the company’s strategic and business objectives and the creation of shareholder value;
• transparent; and
• acceptable to shareholders.
The executive remuneration framework has three components:
•
fixed annual compensation comprising salary or fees and benefits, including superannuation;
• short-term performance incentives; and
•
long-term incentives through participation in the Invex Employee Share Option Plan.
13
ANNUAL REPORT 2021Directors’ Report (cont.) Fixed annual compensation
Executives receive their base salary/fees and benefits structured as a total employment cost (TEC) package
which may be delivered as a combination of cash and prescribed non-financial benefits at the executives’
discretion.
Executives are offered a competitive base pay that comprises the fixed component of pay and rewards.
Independent remuneration consultants provide analysis and advice to ensure base pay is set to reflect the
market for a comparable role.
Base pay for executives is reviewed annually to ensure the executive’s pay is competitive with the market.
An executive’s pay is also reviewed on promotion.
There are no guaranteed base pay increases included in any executives’ contracts.
There are no short-term incentives outstanding.
No benefits other than noted above are paid to Directors or management except as incurred in normal
operations of the business.
Short term incentives
No benefits other than remuneration disclosed in the remuneration report are paid to Directors or
management except as incurred in normal operations of the business.
Long term incentives
The Group’s current Employee Share Option Plan (ESOP) is designed to provide medium and long term
incentives for all employees (including Non-executive and Executive Directors) and to attract and retain
experienced Employees, Board Members and Executive Officers and provide motivation to make the Group
more successful.
As options granted to Directors and Employees are considered to represent the value of the services
received over the vesting period of the options, the assessed value of the options are recognised and
expensed over the vesting period. Options vesting during the period of issue are fully expensed under the
accounting standards.
Other than options disclosed in the remuneration report there have been no options issued to Directors at
the date of this financial report.
Voting and comments made at the Company’s 2020 Annual General Meeting (AGM)
At the 2020 AGM, 100.00% of the votes received supported the adoption of the remuneration report for
the year ended 30 June 2020. The company did not receive any specific feedback at the AGM regarding its
remuneration practices.
Remuneration consultants
The Group did not engage any remuneration consultants during the year.
The Group will engage independent remuneration consultants should it look to make any changes to
director fee levels to ensure they are in line with market conditions and any decisions are made free from
undue influence from members of the Group’s Key Management Personnel (KMP’s).
14
INVEX THERAPUTICS LTD Directors’ Report (cont.) Service agreements
Name
Executive Directors
Term of
agreement
Fees
Termination benefit
Prof Alexandra Sinclair
Open
$150,000
Dr Thomas Duthy – appointed
1 October 2020
Open
$125,000
Relevant notice periods apply, being
1 months’ notice with reason or
3 months without reason.
Relevant notice periods apply, being
1 months’ notice with reason or
3 months without reason.
The relative proportions of remuneration that are linked to performance and those that are fixed are as
follows:
Name
Executive Directors
Prof Alexandra Sinclair
Dr Thomas Duthy
Non-executive Directors
Fixed
remuneration
2021
Performance
based
remuneration (%)
2021
150,000
125,000
47.59
54.40
On appointment to the Board, all Non-executive Directors enter into a service agreement with the Company
in the form of a letter of appointment. The letter summarises the Board’s policies and terms, including
compensation, relevant to the director, and among other things:
• the terms of the directors appointment, including governance, compliance with the Company’s
Constitution, committee appointments, and re-election;
• the directors duties, including disclosure obligations, exercising powers, use of office, attendance at
meetings and commitment levels;
• the fees payable, in line with shareholder approval, any other terms, timing of payments and
entitlements to reimbursements;
•
insurance and indemnity;
• disclosure obligations; and
• confidentiality.
15
ANNUAL REPORT 2021Directors’ Report (cont.) %
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2
INVEX THERAPUTICS LTD Directors’ Report (cont.)
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17
ANNUAL REPORT 2021Directors’ Report (cont.)
The Non-executive Director fees paid during the year:
Base salary
including
superannuation
Termination benefit
Relevant notice periods apply,
being 1 months’ notice with
reason.
$90,000
$60,000
Nil
$50,000
Nil
$50,000
Nil
Name
Term of agreement
Non-Executive Directors
Dr Jason Loveridge –
Consultancy
Open
Dr Jason Loveridge –
Non-executive fee
Shareholder Approval
by rotation
Dr Megan Baldwin1
David McAuliffe-
Non-executive fee
Shareholder Approval
by rotation
Shareholder Approval
by rotation
1. Appointed 16 February 21.
SHARE-BASED COMPENSATION
Options
The Company’s current Employee Share Option Plan (ESOP) was approved by the board of directors
on 20 May 2019. The ESOP is designed to provide medium and long term incentives for all employees
(including Non-executive and Executive Directors) and to attract and retain experienced employees,
board members and executive officers and provide motivation to make the Company more successful.
Under the ESOP, participants have been granted options which only vest if certain milestones are met.
Participation in the plan is at the board’s discretion and no individual has a contractual right to participate
in the plan or to receive any guaranteed benefit.
Any option may only be exercised after the option has vested and other conditions imposed by the board
have been satisfied. Options are granted under the ESOP for no consideration. Options granted under the
ESOP carry no dividend or voting rights. When exercisable, shares allotted pursuant to the exercise of
options will be allotted following receipt of relevant documentation and payments will rank equally with all
other shares.
As options granted to employees are considered to represent the value of the services received over
the vesting period of the options, the assessed value of the options are recognised and expensed over
the vesting period. Options vesting during the period of issue are fully expensed under the accounting
standards.
During the year 30 June 2021 1,200,000 share options (2020: 2,200,000) were granted, no options were
cancelled and no options were forfeited. These options were issued pursuant to the Invex Therapeutics
Employee Share Option Plan.
18
INVEX THERAPUTICS LTD Directors’ Report (cont.) Details of the share-based component issued during the year included in the remuneration are set out
below.
Directors
Grant Date
Expiry Date
Granted
Exercise
Price
during the
period
Vested
during the
Period
Fair value
of each
options
Granted
Total
Share-based
payment
expense for
the year
$
Dr Thomas
Duthy
Dr Megan
Baldwin
Total
18 Nov 2020 18 Nov 2023
$1.30
800,000
8 April 2021 8 April 2024
$1.10
400,000
1,200,000
—
—
—
$0.32
111,865
$0.33
22,560
134,425
The vesting conditions attached to the Director Options are as follows:
• 50% of the Options will vest and become exercisable upon completion of 12 months continuous service
from date of issue.
• 50% of the Options vest and become exercisable upon completion of 24 months continuous service
from date of issue.
All options were granted over unissued fully paid ordinary shares in the company. The number of options
granted was determined having regard to the satisfaction of performance measures. Options vest based on
the provision of service over the vesting period whereby the director or other key management personnel
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.
EQUITY INSTRUMENTS HELD BY KEY MANAGEMENT PERSONNEL
Shareholdings
The numbers of shares in the Company held during the year by each director or key management personnel
of Invex, including their personally related parties are set out below. There were no shares granted during
the reporting year as compensation.
2021
Name
Directors
Dr Jason Loveridge
Prof. Alexandra Sinclair
Dr Thomas Duthy
David McAuliffe
Dr Megan Baldwin
Narelle Warren
Total
Capital
Raising
shares
subscribed
for
38,246
—
—
—
—
—
Balance at
the start of
the year
3,336,000
2,500,000
—
3,350,001
—
200,000
9,386,001
38,246
On Market
Purchases/
On
appointment
Balance at
the end of
the year
Disposals
—
—
—
—
—
—
—
—
—
3,374,246
2,500,000
106,923
106,923
—
—
—
3,350,001
—
200,000
106,923
9,531,170
19
ANNUAL REPORT 2021Directors’ Report (cont.) Option holdings
The number of options over ordinary shares in the Company held during the year by each director and KMP
of Invex Therapeutics Ltd, including their personally related parties, are set out below.
Balance at
the start of
the year
Granted as
compensation
Exercised/
Expired
Balance at
end of the
year
Vested and
exercisable
Un-vested
Fair value at
grant date
2021
Name
Directors and
KMP’s
Dr Jason
Loveridge
Prof Alexandra
Sinclair
Dr Thomas
Duthy
800,000
800,000
—
—
—
800,000
David McAuliffe
200,000
—
Dr Megan
Baldwin
—
400,000
Narelle Warren
400,000
—
—
—
—
—
—
—
800,000
400,000
400,000
$0.42
800,000
400,000
400,000
$0.42
800,000
—
800,000
200,000
100,000
100,000
400,000
—
400,000
400,000
200,000
200,000
$0.32
$0.42
$0.33
$0.42
Total
2,200,000
1,200,000
— 3,400,000 1,100,000 2,300,000
LOANS WITH KEY MANAGEMENT PERSONNEL
There were no loans to or from key management personnel during the year ended 30 June 2021.
OTHER TRANSACTIONS WITH KEY MANAGEMENT PERSONNEL
The following payments were made to Concept Biotech Pty Ltd, of which David McAuliffe and Narelle
Warren are shareholders and directors, during the year for company secretarial work, financial and due
diligence services. These services are provided on normal commercial terms and at arm’s length.
Payments to Concept Biotech Pty Ltd
This is the end of the Remuneration Report.
Signed in accordance with a resolution of the Board of Directors.
2021
$
130,000
130,000
2020
$
130,000
130,000
David McAuliffe
Non- Executive Director
Perth, Western Australia, 27 August 2021
20
INVEX THERAPUTICS LTD Directors’ Report (cont.) Auditors’ Independence Declaration
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
38 Station Street
Subiaco, WA 6008
PO Box 700 West Perth WA 6872
Australia
DECLARATION OF INDEPENDENCE BY JARRAD PRUE TO THE DIRECTORS OF INVEX THERAPEUTICS
LTD
As lead auditor of Invex Therapeutics Ltd for the year ended 30 June 2021, 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 Invex Therapeutics Ltd and the entity it controlled during the period.
Jarrad Prue
Director
BDO Audit (WA) Pty Ltd
Perth, 27 August 2021
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 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 (WA) 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.
21
ANNUAL REPORT 2021
Consolidated Statement of Profit or Loss and Other
Comprehensive Income
For the year ended 30 June 2021
Other income
Research and development expenditure
Capital raising expenses
Finance, compliance and administration expenses
Impairment of intangible asset
Share-based payment expenses
Loss before income tax from continuing operations
Income tax expense/benefit
Note
2021
$
2020
$
4
5
5
5
19
6
158,785
165,703
(1,139,222)
(1,591,547)
—
(158,743)
(740,752)
(674,354)
—
(117,946)
(562,723)
(983,392)
(2,283,911)
(3,360,279)
—
—
Loss for the year from continuing operations
(2,283,911)
(3,360,279)
Other comprehensive income for the year, net of tax
Items that may be reclassified subsequently to profit or loss
—
—
Exchange differences on translation of foreign operations,
net of tax
Total other comprehensive income for the year, net of tax
attributable to members of the Group
Loss for the year is attributable to:
Owners of Invex Therapeutics Ltd
1,591
(6,275)
(2,282,320)
(3,366,554)
(2,283,911)
(3,360,279)
Total comprehensive income for the year is attributable to:
Owners of Invex Therapeutics Ltd
(2,282,320)
(3,366,554)
Loss per share (cents)
13
(3.04)
(5.98)
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in
conjunction with the accompanying notes.
22
INVEX THERAPUTICS LTD Consolidated Statement of Financial Position
As at 30 June 2021
ASSETS
Current Assets
Cash and cash equivalents
Other receivables
Total Current Assets
TOTAL ASSETS
LIABILITIES
Current Liabilities
Trade and other payables
Unallocated shares
Total Current Liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Contributed equity
Reserves
Accumulated losses
TOTAL EQUITY
Note
2021
$
2020
$
7
8
9
10
11
12
14
32,716,091
26,300,459
21,199
116,882
32,737,290
26,417,341
32,737,290
26,417,341
658,614
712,946
—
1,302,427
658,614
658,614
2,015,373
2,015,373
32,078,676
24,401,968
36,413,432
27,017,127
1,541,556
977,242
(5,876,312)
(3,592,401)
32,078,676
24,401,968
The above Consolidated Statement of Financial Position should be read in conjunction with the
accompanying notes.
23
ANNUAL REPORT 2021 Consolidated Statement of Changes in Equity
For the year ended 30 June 2021
Contributed
Equity
Accumulated
Losses
$
$
Reserves
$
Total
Equity
$
Balance as at 1 July 2020
27,017,127
(3,592,401)
977,242
24,401,968
(Loss) for the year
Other comprehensive income for the year
Exchange difference on translation of foreign
operations
Total comprehensive (loss) for the year
Share-based payment reserve movement
Transactions with owners in their capacity as
owners:
—
—
—
—
—
—
Issue of share capital, net of transaction costs
9,396,305
(2,283,911)
—
—
(2,283,911)
—
—
—
—
—
1,591
1,591
(2,283,911)
—
1,591
(2,282,320)
562,723
562,723
—
—
—
9,396,305
Balance as at 30 June 2021
36,413,432
(5,876,312)
1,541,556
32,078,676
Balance as at 1 July 2019
(Loss) for the year
Other comprehensive income for the year
Exchange difference on translation of foreign
operations
Total comprehensive (loss) for the year
Share-based payment reserve movement
Transactions with owners in their capacity as
owners:
Contributed
Equity
Accumulated
Losses
Reserves
$
$
11,670,444
(232,122)
Total
Equity
$
11,438,322
(3,360,279)
—
$
—
—
—
(3,360,279)
—
—
—
—
—
—
—
—
(6,275)
(6,275)
(3,360,279)
(6,275)
(3,366,554)
—
—
—
983,517
983,517
—
15,346,683
Issue of share capital, net of transaction costs
15,346,683
Balance as at 30 June 2020
27,017,127
(3,592,401)
977,242
24,401,968
The above Consolidated Statement of Changes in Equity should be read in conjunction with the
accompanying notes.
24
INVEX THERAPUTICS LTD
Consolidated Statement of Cash Flows
For the year ended 30 June 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees
Interest received
Net cash outflow from operating activities
CASH FLOWS FROM FINANCING ACTIVITIES
Note
2021
$
2020
$
(1,837,030)
(1,769,096)
158,785
165,703
(1,678,245)
(1,603,393)
Subscription proceeds received for ordinary shares
8,647,547
16,250,000
Subscription proceeds received for options
IPO capital raising costs
Placement capital raising costs
Subscriptions proceeds unallocated
Net cash inflow from financing activities
—
—
125
(847,881)
(553,670)
(971,066)
—
1,302,427
8,093,877
15,733,605
Net increase in cash and cash equivalents held
Cash and cash equivalents at the beginning of the year
6,415,632
14,130,212
26,300,459
12,170,247
Cash and cash equivalents at end of financial year
7
32,716,091
26,300,459
The above Consolidated Statement of Cash Flows should be read in conjunction with accompanying the
notes.
25
ANNUAL REPORT 2021 1. BASIS OF PREPARATION
The financial report is a general purpose financial report that has been prepared in accordance
with Australian Accounting Standards, Australian Accounting Interpretations, other authoritative
pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.
Invex Therapeutics Limited is a listed public company, incorporated and domiciled in Australia and is the
parent entity. Invex Therapeutics Limited is a for-profit entity for the purpose of preparing the financial
statements.
These consolidated financial statements comprise the Company and its controlled entity at the end of,
or during the year (together referred to as ‘the Group’) and were authorised for issue by the Board of
Directors.
Australian Accounting Standards set out accounting policies that the AASB has concluded would result in
a financial report containing relevant and reliable information about transactions, events and conditions.
Compliance with Australian Accounting Standards ensures that the financial statements and notes also
comply with International Financial Reporting Standards as issued by the IASB. Material accounting policies
adopted in the preparation of this financial report are presented below and have been consistently applied
unless otherwise stated.
The financial report has been prepared on an accruals basis and is based on historical costs, modified,
where applicable, by the measurement at fair value of selected non-current assets, financial assets and
financial liabilities.
2. NEW AND AMENDED ACCOUNTING STANDARDS AND INTERPRETATIONS
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.
Conceptual Framework for Financial Reporting (Conceptual Framework)
The consolidated entity has adopted the revised Conceptual Framework from 1 July 2020. The Conceptual
Framework contains new definition and recognition criteria as well as new guidance on measurement that
affects several Accounting Standards, but it has not had a material impact on the consolidated entity's
financial statements.
3. SUMMARY OF ACCOUNTING POLICIES
The following material accounting policies adopted by the Group in the preparation of the financial report,
have been consistently applied unless otherwise stated.
(a) 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 21.
(b) Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Invex
Therapeutics Ltd (Company or Invex) as at 30 June 2021 and the results of its subsidiary for the year then
ended. Invex Therapeutics Ltd and its subsidiary 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.
26
INVEX THERAPUTICS LTD Notes to the Consolidated Financial Statements 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.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting.
(c) Foreign currency translation
The financial statements are presented in Australian dollars, which is Invex'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.
The foreign currency reserve is recognised in profit or loss when the foreign operation or net investment is
disposed of.
(d) 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.
(e) Revenue recognition
Revenue is recognised when or as the Group transfers control of goods or services to a customer at the
amount at which the Group expects to be entitled. The following specific recognition criteria must also be
met before revenue is recognised:
Interest income
Revenue is recognised as the interest accrues (using the effective interest method), which is the rate that
exactly discounts estimated future cash receipts through the expected life of the financial instrument to the
net carrying amount of the financial asset.
(f) Loans and Receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not
quoted in an active market and are stated at amortised cost using the effective interest rate method.
At each reporting date, the Group assesses whether there is objective evidence that a financial instrument
has been impaired.
(g) Right-of-use asset
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.
27
ANNUAL REPORT 2021 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.
(h) Lease liability
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.
(i) 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 either the Binomial or 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 either the Binomial or 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.
28
INVEX THERAPUTICS LTD Notes to the Consolidated Financial Statements (cont.) (j) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST
incurred is not recoverable from the Tax Office. In these circumstances the GST is recognised as part of
the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the
statement of financial position are shown inclusive of GST.
Cash flows are presented in the statement of cash flows on a gross basis, except for the GST components of
investing and financing activities, which are disclosed as operating cash flows.
(k) Cash and Cash Equivalents
Cash and short-term deposits in the Statement of Financial Position comprise cash at bank and on hand
and short-term deposits.
(l) Trade and Other Receivables
Trade receivables, which generally have 30-90 day terms, are recognised and initially at fair value and
subsequently measured at amortised cost using the effective interest rate method, less loss allowance.
The Group applies the AASB 9 simplified approach to measure expected credit losses which uses lifetime
expected loss allowance for trade receivables. Bad debts are written off when identified.
(m) Income Tax
Tax expense recognised in profit or loss comprises the sum of deferred tax and current tax not recognised
in other comprehensive income or directly in equity.
Current income tax assets and/or liabilities comprise those obligations to, or claims from, the Australian
Taxation Office (ATO) and other fiscal authorities relating to the current or prior reporting periods that are
unpaid at the reporting date. Current tax is payable on taxable profit, which differs from profit or loss in the
financial statements. Calculation of current tax is based on tax rates and tax laws that have been enacted or
substantively enacted by the end of the reporting period.
Deferred income taxes are calculated using the full liability method on temporary differences between
the carrying amounts of assets and liabilities and their tax bases. However, deferred tax is not provided
on the initial recognition of goodwill or on the initial recognition of an asset or liability unless the related
transaction is a business combination or affects tax or accounting profit. Deferred tax on temporary
differences associated with investments in subsidiaries and joint ventures is not provided if reversal of these
temporary differences can be controlled by the Group and it is probable that reversal will not occur in the
foreseeable future.
Deferred tax assets and liabilities are calculated, without discounting, at tax rates that are expected to
apply to their respective period of realisation, provided they are enacted or substantively enacted by the
end of the reporting period.
Deferred tax assets are recognised to the extent that it is probable that they will be able to be utilised
against future taxable income, based on the Group’s forecast of future operating results which is adjusted
for significant non-taxable income and expenses and specific limits to the use of any unused tax loss or
credit. Deferred tax liabilities are always provided for in full.
Deferred tax assets and liabilities are offset only when the Group has a right and intention to set off current
tax assets and liabilities from the same taxation authority.
Changes in deferred tax assets or liabilities are recognised as a component of tax income or expense in
profit or loss, except where they relate to items that are recognised in other comprehensive income (such
as the revaluation of land) or directly in equity, in which case the related deferred tax is also recognised in
other comprehensive income or equity, respectively.
29
ANNUAL REPORT 2021 (n) Equity, reserves and dividend payments
Share capital represents the fair value of shares that have been issued. Any transaction costs associated
with the issuing of shares are deducted from share capital, net of any related income tax benefits.
Dividend distributions payable to equity shareholders are included in other liabilities when the dividends
have been approved in a General Meeting prior to the reporting date.
All transactions with owners of the parent are recorded separately within equity.
(o) Trade and other Payables
Trade and other payables represent liabilities for goods and services provided to the Group prior to the
period end and which are unpaid. These amounts are unsecured, have 30-60 day payment terms and are
measured at amortised cost.
(p) Provisions, contingent liabilities and contingent assets
Provisions for legal disputes, onerous contracts or other claims are recognised when the Group has
a present legal or constructive obligation as a result of a past event, it is probable that an outflow of
economic resources will be required from the Group and amounts can be estimated reliably. Timing or
amount of the outflow may still be uncertain.
Provisions are measured at the estimated expenditure required to settle the present obligation, based on
the most reliable evidence available at the reporting date, including the risks and uncertainties associated
with the present obligation. Where there are a number of similar obligations, the likelihood that an outflow
will be required in settlement is determined by considering the class of obligations as a whole. Provisions
are discounted to their present values, where the time value of money is material.
No liability is recognised if an outflow of economic resources as a result of present obligation is not
probable. Such situations are disclosed as contingent liabilities, unless the outflow of resources is remote in
which case no liability is recognised.
(q) Research and Development
Research expenditure is recognised as an expense is incurred.
Costs incurred on developments projects (relating to the development and testing of new or improved
products) are recognised as intangible assets when it is probable that the project will, after considering
its commercial and technical feasibility, be completed and generate future economic benefits and its costs
can be measured reliably. The expenditure capitalized comprises all directly attributable costs, including
costs of materials, services, direct labour and an appropriate proportion of overheads. Other development
expenditures that do not meet these criteria are recognized as an expense as incurred. Development costs
previously recognised as an expense are not recognized as an asset in a subsequent period. Capitalised
development costs are recorded as intangible assets and amortised from the point at which the asset is
ready for use.
(r) Impairment of assets
Non-financial assets
At the end of each reporting period, non-financial assets are reviewed for impairment whenever events or
changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is
recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount.
Recoverable amount is the higher of an asset’s fair value less costs of disposal and value-in-use. The value-
in-use is the present value of the estimated future cash flows relating to the asset using a pre-tax discount
rate specific to the asset or cash-generating unit to which the asset belongs. Assets that do not have
independent cash flows are grouped together to form a cash-generating unit.
Financial assets
At the end of each reporting period, the Group assesses whether there is objective evidence that a financial
asset has been impaired. For financial assets measured at fair value, gains or losses will be recorded in profit
or loss, or through Other Comprehensive Income (FVTOCI) if the Group has made an irrevocable election at
the time of initial recognition to account for equity instruments through OCI.
30
INVEX THERAPUTICS LTD Notes to the Consolidated Financial Statements (cont.) (s) Critical Accounting Estimates and Judgments Required
The directors evaluate estimates and judgments incorporated into the financial report based on historical
knowledge and best available current information. Estimates assume a reasonable expectation of future
events and are based on current trends and economic data, obtained both externally and within the Group.
Coronavirus (COVID-19) pandemic
Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has
had, or may have, on the consolidated entity based on known information. This consideration extends to
the nature of the products and services offered, customers, supply chain, staffing and geographic regions in
which the consolidated entity operates. Other than as addressed in specific notes, there does not currently
appear to be either any significant impact upon the financial statements or any significant uncertainties
with respect to events or conditions which may impact the consolidated entity unfavourably as at the
reporting date or subsequently as a result of the Coronavirus (COVID-19) pandemic.
Research and development expenditure
Distinguishing the research and development phases of a new customized project and determining whether
the recognition requirements for the capitalization of development costs are met requires judgement. The
Group has expensed all costs relating to research and development expenditure to date on the basis that
the capitalisation requirements have not been met.
The Group’s consideration of whether its internal projects to develop drugs are in a research phase or
development phase involves significant judgement.
The Group considers a project to be in a development phase when the following can be demonstrated:
• The technical feasibility of completing the intangible asset so that it will be available for use or sale;
• There is intention to complete the project;
• The existence of a market to be able to sell output resulting from the project;
• How the intangible asset will generate probable future economic benefits;
• There is adequate technical, financial and other resources available to complete the development and to
use or sell the intangible asset; and
• Expenditure attributable to the project can be reliably measured.
Share-based payment transactions
The Group measures the cost of equity-settled transactions by reference to the fair value of the equity
instruments at the date at which they are granted. The fair value is determined using a Black-Scholes model.
4. OTHER INCOME
Interest income
2021
$
158,785
2020
$
165,703
31
ANNUAL REPORT 2021 5. LOSS FOR THE YEAR
The loss for the year before income tax includes the following specific expenses:
2021
$
106,828
15,779
106,073
395,097
247,908
2,652
—
150,000
114,886
1,139,222
—
—
—
131,703
89,462
93,750
128,750
25,896
31,626
63,025
(11,430)
68,575
55,152
30,785
22,202
11,256
2020
$
227,791
621,377
—
28,932
262,367
10,999
86,314
140,000
213,767
1,591,547
27,583
131,160
158,743
134,652
45,290
—
70,000
68,661
28,943
47,136
73,845
51,691
105,451
—
37,117
11,568
740,752
674,354
(a) Research and development expenses
Reformulation
Phase II Clinical Trial
Phase III Clinical Trial
Employee costs
Consultants
Scientific Advisory Board
PK Studies
CSO fees
Patent expenses
Total
(b) Capital raising expenses
ASX listing/quotation fees
Corporate advisory and consultants
Total
(c) Administration expenses
Accounting and company secretarial fees
ASX, ASIC and bank fees
Executive Director’s fees
Non-executive Director’s fees
Legal fees
Rent and office expenses
Audit and tax fees
Travel and entertainment
D&O Insurance
Investor relations and PR expenses
Share registry and shareholder meetings
Other general expenses
Website and IT expenses
Total
32
INVEX THERAPUTICS LTD Notes to the Consolidated Financial Statements (cont.) 6. INCOME TAX
(a) The components of tax expense comprise:
Current tax
Deferred tax expense
Total income tax expense from continuing operations
Deferred income tax expense included in income tax expense
comprises:
Decrease/(increase) in deferred tax assets
Decrease/(increase) in deferred tax liabilities
2021
$
2020
$
—
—
—
—
—
—
—
—
—
—
(b) The prima facie tax on profit from ordinary activities before income
tax is reconciliation of income tax expense to prima facie tax payable:
Loss before income tax
(2,283,911)
(3,360,279)
Prima facie tax benefit on loss from ordinary activities before income
tax at 30% (2020: 30%)
(685,173)
(1,008,084)
Tax effect of:
- share-based payments
- intellectual property costs
- change in corporate tax rate
- entertainment
- other
- tax differential rate
Tax losses and temporary differences not recognised
Income tax expense/(benefit)
The applicable weighted average effective tax rate are as follows:
(c) Amounts recognised directly in equity
Aggregate current and deferred tax arising in the reporting period
and not recognised in net loss or other comprehensive income but
directly debited or credited to equity.
Current tax
Net deferred tax
168,187
34,446
—
422
127
77,448
403,894
—
30%
295,018
99,514
(29,263)
1,882
552
13,578
628,803
—
30%
166,109
270,995
33
ANNUAL REPORT 2021 (d) Deferred tax assets
Patents
Accruals
Business related costs
Australian tax losses
Unrealised fx losses
Foreign tax losses
Other
Capital raising costs in equity
7. CASH AND CASH EQUIVALENTS
Cash at bank and on hand
8. OTHER RECEIVABLES
GST/VAT receivable
2021
$
2020
$
29,801
7,200
37,413
1,175,857
4,734
211,221
—
1,080
6,600
62,406
736,768
—
40,735
(194)
408,202
385,872
1,874,427
1,233,267
2021
$
2020
$
32,716,091
26,300,459
32,716,091
26,300,459
2021
$
21,199
21,199
2020
$
116,882
116,882
There are no other receivables that are past due or impaired at 30 June 2021.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of
receivables or payables in the statement of financial position. At 30 June 2021, this is included as part of
GST receivable above.
9. TRADE AND OTHER PAYABLES
Trade payables
Accruals and other payables
2021
$
11,333
647,281
658,614
2020
$
30,398
682,548
712,946
Trade payables are non-interest bearing and are normally settled on 30-day terms.
34
INVEX THERAPUTICS LTD Notes to the Consolidated Financial Statements (cont.) 10. UNALLOCATED SHARES
Unallocated shares
2021
$
—
—
2020
$
1,302,247
1,302,247
Following shareholder approval on the 29 June 2020, these shares were allotted on the 2 July 2020.
11. CONTRIBUTED EQUITY
2021
$
2021
Number
of shares
2020
$
2020
Number
of shares
Ordinary shares on issue – fully paid
36,413,432
75,153,848
27,017,127
67,500,001
36,413,432
75,153,848
27,017,127
67,500,001
Holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled
to one vote per share at shareholders meetings. In the event of winding up of the Company ordinary
shareholders rank after creditors and are fully entitled to any proceeds of liquidation in proportion to the
number and amount paid on the shares held.
Movement in fully paid ordinary
shares on issue
Balance at beginning of financial
period
2021
$
2021
Number
of shares
2020
$
2020
Number
of shares
27,017,127
67,500,001
11,670,444
55,000,001
Placement (May 20 and July 20)
9,949,975
7,653,847
16,250,000
12,500,000
Cost of capital raising
(553,670)
—
(903,317)
—
Balance at end of financial year
36,413,432
75,153,848
27,017,127
67,500,001
12. RESERVES
Share-based payment reserve
Foreign currency translation reserve
Nature and Purpose of Reserve
2021
$
1,546,240
(4,684)
1,541,556
2020
$
983,517
(6,275)
977,242
The share-based payment reserve records the value of options, performance rights and performance shares
issued to the Group’s directors, employees, and third parties. The value of the amount disclosed during the
period reflects the value of options, performance rights and performance shares issued by the Group.
The Foreign currency translation reserve records exchange differences arising on translation of foreign
controlled entities.
35
ANNUAL REPORT 2021 Options outstanding at 30 June 2021
The following options over ordinary shares of the Company were granted at reporting date:
Grant Date
Expiry Date
Exercise
Price
Balance
at start of
year
Granted
during
the year
Exercised
during the
year
Forfeited
during the
year
Balance at
year end
Vested and
exercisable
at year end
22 Nov 2019 22 Nov 2023
$0.60 2,200,000
21 Jan 2020 21 Jan 2023
$1.00 1,250,000
9 April 2020 9 April 2023
$0.60
60,000
—
—
—
20 Oct 2020 20 Oct 2023
18 Nov 2020 18 Nov 2023
8 April 2021 8 April 2024
$1.30
$1.30
$1.10
— 400,000
— 800,000
— 400,000
—
— 2,200,000
1,100,000
— (500,000)
750,000
750,000
—
—
—
—
—
60,000
30,000
— 400,000
— 800,000
— 400,000
—
—
—
3,510,000 1,600,000
— (500,000) 4,610,000 1,880,000
Reconciliation of movement in Share-based payment reserve:
Opening Balance - 1 July 2020
Number of
Options
Value
$
—
983,517
Share-based payment expense in respect to Director options on issue at
30 June 2021
2,200,000
374,497
Share-based payment expense in respect to adviser options on issue at
30 June 2021
Share-based payment expense in respect to employee options on issue at
30 June 2021
Share-based payment expense in respect to employee options on issue at
30 June 2021 and granted during the period
Share-based payment expense in respect to Director options on issue at
30 June 2021 and granted during the period
Share-based payment expense in respect to Director options on issue at
30 June 2021 and granted during the period
Closing Balance – 30 June 2021
13. LOSS PER SHARE
Basic and Diluted (Loss) per Share – cents
Total basic and diluted loss per share – cents
750,000
(32,228)
60,000
21,035
400,000
64,994
800,000
111,865
400,000
22,560
4,610,000
1,546,240
2021
$
(3.04)
2020
$
(5.98)
Basic and diluted loss per share is calculated by dividing the loss for the year attributable to ordinary equity
holders of the parent by the weighted average number of ordinary shares outstanding during the year.
36
INVEX THERAPUTICS LTD Notes to the Consolidated Financial Statements (cont.) The following table reflects the loss and share data used in the basic and diluted loss per share:
Net loss attributable to members of the Group
(2,283,911)
(3,360,279)
Earnings used in calculating basic and diluted earnings per share
from continuing operations
(2,283,911)
(3,360,279)
2021
$
2020
$
Weighted average number of Ordinary Shares used in calculating
basic and diluted earnings per share
75,153,848
56,165,385
2021
Number of
shares
2020
Number of
shares
Dilutive Potential Ordinary Shares
As at balance date, there were no options on issue.
14. ACCUMULATED LOSSES
2021
$
2020
$
Accumulated losses at the beginning of the financial period
(3,592,401)
(232,122)
Net loss attributable to members of the Group
Accumulated losses at the end of the financial year
(2,283,911)
(3,360,279)
(5,876,312)
(3,592,401)
15. RECONCILIATION OF NET CASH FLOWS OPERATING ACTIVITIES TO
OPERATING (LOSS) AFTER TAX
Loss (after income tax) for the year
Non-cash items included in profit or loss:
Write-off acquisition costs
Share-based payment expenses
Unrealised fx reserve movements
Net changes in working capital:
Decrease in trade and other receivables
(Decrease)/increase in trade and other payables
Net cash used in operating activities
Non-cash investing and financing activities disclosed in other notes are:
Share-based payment expense (refer Note 19).
FX reserve movements (refer Note 12).
2021
$
2020
$
(2,283,911)
(3,360,279)
—
562,723
1,591
117,946
983,392
(6,275)
95,682
(54,330)
36,487
624,976
(1,678,245)
(1,603,393)
37
ANNUAL REPORT 2021 16. FINANCIAL RISK MANAGEMENT
The Group’s principal financial instruments comprise cash, short-term deposits and trade payables.
The Group does not have any derivative instruments at 30 June 2021 and does not speculate in any
financial instruments.
Financial Risks
The activities of the Group expose it primarily to the financial risks of interest rate risk, liquidity risk, foreign
exchange risk and credit risk. The Board of Directors is responsible for monitoring and managing the
financial risks of the Group. The Company Secretary/CFO monitors these risks by the review and analysis of
monthly management accounts and other financial data.
Interest Rate Risk
The Group’s main interest rate risk arises from cash held on deposit by Australian Financial Institutions.
Cash held in term deposits is subject to prevailing variable interest rates and expose the Group to cash flow
interest rate risk.
The following table summarises interest rate risk for the Group.
Fixed Interest
Rate Maturing
Floating
Interest
Rate
$
1 Year or
Less
$
1 to 5 Years
$
Non-
Interest
Bearing
$
Total
$
32,716,091
32,716,091
—
—
—
—
—
32,716,091
— 32,716,091
Fixed Interest
Rate Maturing
Floating
Interest
Rate
$
1 Year or
Less
$
1 to 5 Years
$
Non-
Interest
Bearing
$
Total
$
2021
Interest-bearing financial instruments
Cash and cash equivalents
2020
Interest-bearing financial instruments
Cash and cash equivalents
26,300,459
26,300,459
—
—
—
—
— 26,300,459
— 26,300,459
The Group does not rely on the generation of interest on cash at bank to provide working capital and does
not consider the exposure to be material to the Group and have therefore not undertaken any further
analysis of exposure.
Liquidity Risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The
Board of Directors manage liquidity risk by continually monitoring cash reserves and cashflow forecasts to
ensure that financial commitments can be met as and when they fall due.
The Group’s objective is to maintain a balance between continuity of funding and flexibility through the use
of equity funding.
38
INVEX THERAPUTICS LTD Notes to the Consolidated Financial Statements (cont.) The following table details the expected contractual maturity for its non-derivative financial liabilities.
2021
Financial liabilities due
Trade and other payables
2020
Financial liabilities due
Trade and other payables
Credit Risk Exposure
Total
$
1 year or
less
$
1 – 5 years
$
5+ years
$
658,614
658,614
658,614
658,614
—
—
—
—
Total
$
1 year or
less
$
1 – 5 years
$
5+ years
$
712,946
712,946
712,946
712,946
—
—
—
—
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument
fails to meet its contractual obligations and arises principally from the Group’s cash at bank. The carrying
amount of the financial assets on the Statement of Financial Position represents the maximum credit
exposure.
All cash and cash equivalents are held with large reputable financial institutions within Australia and
therefore credit risk is considered minimal.
Cash and cash equivalents:
AA rated
Foreign currency risk
2021
$
2020
$
32,716,091
26,300,459
The consolidated entity undertakes certain transactions denominated in foreign currency and is exposed to
foreign currency risk through foreign exchange rate fluctuations.
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.
17. RELATED PARTY TRANSACTIONS
Key Management Personnel
There were no key management personnel, other than the directors, during the year ended 30 June 2021.
The names of each person holding the position of director of the Company during the financial year are set
out below:
• Dr Jason Loveridge
• Prof. Alexandra Sinclair
• Dr Thomas Duthy
• Dr Megan Baldwin
• Mr David McAuliffe
• Ms Narelle Warren
39
ANNUAL REPORT 2021 Transactions with key management personnel
(i) Total key management personnel remuneration is as follows:
Short Term Benefits
Other non-cash Benefits
Post Employment Benefits
Share-based payments
2021
$
2020
$
590,873
445,000
—
1,626
51,692
—
508,922
477,252
1,101,224
973,944
(ii) Nil loans were payable to or receivable from KMPs during or at the end of the financial year.
Unless otherwise stated, none of the transactions incorporate special terms and conditions and no
guarantees were given or received.
18. INTERESTS IN SUBSIDIARY
The consolidated financial statements incorporate the assets, liabilities and results of the following wholly-
owned subsidiary in accordance with the accounting policy described in note 3:
Name
Principal place of business /
Country of incorporation
Invex Therapeutics Ltd
United Kingdom
Invex Therapeutics Ltd UK was incorporated on 12 December 2019.
19. SHARE-BASED PAYMENTS
Ownership interest
2021
%
100
2020
%
100
Share-based payments made during the year ended 30 June 2021 are summarised below.
Recognised Share-based payment expense
Options granted to Directors as incentive
Options granted to Advisers as incentive
Options granted to Employees as incentive
2021
$
2020
$
508,922
477,252
(32,228)
500,582
86,029
5,558
562,723
983,392
Options granted to Directors and employees for services
The Group’s current Employee Share Option Plan (ESOP) was approved by the Board of Directors on
20 May 2019. The ESOP is designed to provide medium and long term incentives for all employees
(including Non-executive and Executive Directors) and to attract and retain experienced Employees, Board
Members and Executive Officers and provide motivation to make the Group more successful.
Under the ESOP, participants have been granted options which only vest if certain milestones are met.
Participation in the plan is at the board’s discretion and no individual has a contractual right to participate
in the plan or to receive any guaranteed benefit.
Any option may only be exercised after the option has vested and other conditions imposed by the board have
been satisfied. Options are granted under the ESOP for no consideration. Options granted under the ESOP
carry no dividend or voting rights. When exercisable, shares allotted pursuant to the exercise of options will be
allotted following receipt of relevant documentation and payments will rank equally with all other shares.
40
INVEX THERAPUTICS LTD Notes to the Consolidated Financial Statements (cont.) As options granted to employees are considered to represent the value of the services received over
the vesting period of the options, the assessed value of the options are recognised and expensed over
the vesting period. Options vesting during the period of issue are fully expensed under the accounting
standards. The total Directors and Employee Options expense for the period is outlined below.
Valuation
Tranche
Date Expiry Date
Exercise
Price
Balance
at start of
year
Granted
during the
year
Vested
during the
year
Total Share-
based
payment
expense for
the year
1
3
4
5
6
Total
22 Nov 2019 22 Nov 2023
$0.60
2,200,000
9 April 2020 9 April 2023
$0.60
60,000
—
—
20 Oct 2020 20 Oct 2023
18 Nov 2020 18 Nov 2023
8 April 2021 8 April 2024
$1.30
$1.30
$1.10
—
—
—
400,000
800,000
400,000
1,100,000
347,497
30,000
—
—
—
48,035
64,994
111,865
22,560
2,260,000
1,600,000
1,130,000
594,951
Appropriate values for the options using the Black Scholes Model applying the following inputs.
Tranche
Share price
Exercise price
Expected volatility
Expiry date (years)
Expected dividends
Risk free rate
Value per option
1
$0.71
$0.60
75%
4.00
Nil
0.77%
$0.42
2
$1.17
$1.00
75%
3.00
Nil
0.77%
$0.62
3
$0.92
$0.60
75%
3.00
Nil
0.77%
$0.55
4
$0.96
$1.30
80%
3.00
Nil
0.77%
$0.35
5
6
$0.805
$0.78
$1.30
80%
3.00
Nil
0.87%
$0.32
$1.10
80%
3.00
Nil
0.77%
$0.33
The vesting conditions attached to the Tranche 1, 3, 4, 5 and 6 Director and Employee Options are as
follows:
• 50% of the Options will vest and become exercisable upon completion of 12 months continuous service
from date of issue; and
• 50% of the Options vest and become exercisable upon completion of 24 months continuous service
from date of issue.
The vesting conditions attached to the Tranche 2 Options are as follows:
• 250,000 of the Options vest from date of issue.
• 250,000 of the Options will vest and become exercisable 6 months from date of issue.
• 250,000 of the Options will vest and become exercisable 9 months from date of issue.
41
ANNUAL REPORT 2021 Options granted to Advisers (Tranche 2)
On 21 January 2020 the Company issued 1,250,000 options to advisers in relation to services provided. The
agreement with the adviser was terminated on 12 December 2020 and the remaining unvested 500,000
options were forfeited pursuant to the agreement. An expense of $82,398 for the options vested during the
year was recognised and an adjustment of ($114,626) for the forfeiture of the advisor options.
The weighted average remaining contractual life of options outstanding at the end of the year was 2.04
years.
20. MATTERS SUBSEQUENT TO END OF FINANCIAL YEAR
The impact of the Coronavirus (COVID-19) pandemic is ongoing and while it has not adversely financially
impacted the consolidated entity up to 30 June 2021, it is not practicable to estimate the potential impact,
positive or negative, after the reporting date. The situation is changing rapidly and the Company’s ability to
operate normally is subject to measures imposed by the Australian Government and other countries, such
as maintaining social distancing requirements, quarantine, travel restrictions and other economic stimulus
that may be provided.
Other than as disclosed above, no matters or events have arisen since the end of the financial period
which significantly affected or may significantly affect the operations of the company, the results of those
operations or the state of affairs of the company in subsequent financial periods.
42
INVEX THERAPUTICS LTD Notes to the Consolidated Financial Statements (cont.) 21. PARENT ENTITY INFORMATION
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
Loss after income tax
Total comprehensive income
Statement of financial position
Total current assets
Parent
2021
$
2020
$
(1,579,841)
(3,224,497)
(1,579,841)
(3,224,497)
Parent
2021
$
2020
$
32,667,047
26,393,062
Total non-current assets
901,054
157,095
Total current liabilities
Total liabilities
Equity
Issued capital
Reserves
Accumulated losses
Total equity
22. AUDITOR’S REMUNERATION
Amounts paid or payable to BDO for:
Audit services
– an audit or review of the financial report of the entity
Total audit services
Taxation services
Total other services
655,521
2,006,132
655,521
2,006,132
36,413,432
27,017,127
1,541,556
983,517
(5,036,460)
(3,456,619)
32,918,528
24,544,025
2021
$
2020
$
35,126
35,126
2,500
2,500
35,291
35,291
2,000
2,000
43
ANNUAL REPORT 2021 23. DIVIDENDS
There are no dividends paid or payable at 30 June 2021.
24. COMMITMENTS
There are no other commitments which require disclosure as at 30 June 2021.
25. SEGMENT REPORTING
The Group has identified its operating segments based on the internal reports that are reviewed and used
by the Board of Directors in assessing performance and determining the allocation of resources.
The Group is managed primarily on the basis of its research and development activities. Operating
segments are therefore determined on the same basis.
Reportable segments disclosed are based on aggregating operating segments where the segments are
considered to have similar economic characteristics.
The Group operated in one segment which is research and development activities within Australia. The
Company is domiciled in Australia.
26. CONTINGENT LIABILITIES AND CONTINGENT ASSETS
The Directors are not aware of any contingent liabilities or contingent assets which require disclosure as at
30 June 2021.
44
INVEX THERAPUTICS LTD Notes to the Consolidated Financial Statements (cont.) Directors’ Declaration
In the Directors’ opinion:
(a) the financial statements and notes are in accordance with the Corporations Act 2001, and:
(i) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory
professional reporting requirements; and
(ii) give a true and fair view of the financial position as at 30 June 2021 and of the performance for the
year ended on that date of the Group.
(iii) are in accordance with International Financial Reporting Standards issued by the International
Accounting Standards Board, as stated in note 1 to the financial statements; and
(b) In the Directors’ opinion, there are reasonable grounds to believe that the Group will be able to pay its
debts as and when they become due and payable; and
(c) The Directors have been given the declarations by the Executive Director as required by section 295A, of
the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Board of Directors and is signed for and on
behalf of the directors by;
David McAuliffe
Non-executive Director
Perth, Western Australia, 27 August 2021
45
ANNUAL REPORT 2021 Independent Auditor’s Report
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
38 Station Street
Subiaco, WA 6008
PO Box 700 West Perth WA 6872
Australia
INDEPENDENT AUDITOR'S REPORT
To the members of Invex Therapeutics Ltd
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Invex Therapeutics Ltd (the Company) and its subsidiary (the
Group), which comprises the consolidated statement of financial position as at 30 June 2021, 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 a summary of significant accounting policies and the directors’
declaration.
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Act 2001, including:
(i)
(ii)
Giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its
financial performance for the year ended on that date; and
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
audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 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 (WA) 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.
46
INVEX THERAPUTICS LTD
Measurement of Share-Based Payments
Key audit matter
How the matter was addressed in our audit
During the financial year ended 30 June 2021, the
Our procedures included, but were not limited to the
Group issued options to employees and key
following:
management personnel, as disclosed in Note 19 of the
financial report. The Group performed calculations to
record the related share based payment expense in
accordance with AASB 2 Share Based Payments in the
consolidated statement of profit or loss and other
comprehensive income.
Refer to Notes 3(i) and 3(s) of the financial report for a
description of the accounting policy and significant
estimates and judgements applied to these
arrangements.
Due to the complex and judgemental estimates used in
determining the fair value of the share-based
payments, we consider the Group’s calculation of the
share based payment expense to be a key audit
matter.
•
Reviewing the relevant agreements to obtain
an understanding of the contractual nature
and terms and conditions of the share-based
payment arrangements;
•
Reviewing management’s determination of
the fair value of the share-based payments
granted, considering the appropriateness of
the valuation models used and assessing the
valuation inputs;
•
Involving our valuation specialists to assess
the assumptions used in the Group's
calculation being the share price of the
underlying equity, risk free rate and
volatility;
•
Assessing the allocation of the share-based
payment expense over the relevant vesting
period; and
•
Assessing the adequacy of the related
disclosures in the financial 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 2021, 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.
47
ANNUAL REPORT 2021
Independent Auditor’s Report (cont.)
Responsibilities of the directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website (http://www.auasb.gov.au/Home.aspx) at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
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 pages 12 to 20 of the directors’ report for the
year ended 30 June 2021.
In our opinion, the Remuneration Report of Invex Therapeutics Ltd, for the year ended 30 June 2021,
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 (WA) Pty Ltd
Jarrad Prue
Director
Perth, 27 August 2021
48
INVEX THERAPUTICS LTD
Corporate Governance Statement
In fulfilling its obligations and responsibilities to its various stakeholders, the Board is a strong advocate
of corporate governance. This statement outlines the principal corporate governance procedures of Invex
Therapeutics Ltd (Group). The Board of Directors (Board) supports a system of corporate governance to
ensure that the management of Invex Therapeutics Ltd is conducted to maximise shareholder wealth in a
proper and ethical manner.
ASX CORPORATE GOVERNANCE COUNCIL RECOMMENDATIONS
The Board has adopted corporate governance policies and practices consistent with the ASX Corporate
Governance Council's Principles of Good Corporate Governance and Best Practice Recommendations ("ASX
Principles and Recommendations 4th Edition") where considered appropriate for Invex Therapeutics Ltd
size and nature. Such policies include, but are not limited to the Board Charter, Board Committee Charters,
Code of Conduct, Trading in Securities, Continuous Disclosure, Shareholder Communication and Risk
Management Policies.
Further details in respect to the Group’s corporate governance practises and copies of Group’s corporate
governance policies and the 2021 Corporate Governance Statement, approved by the Board and applicable
as at 30 June 2021 are available of the Group’s website:
http://www.invextherapeutics.com/company/corporate-governance
49
ANNUAL REPORT 2021 ASX Additional Information
Additional information required by the ASX Limited Listing Rules not disclosed elsewhere in this Annual
Report is set out below.
1. SHAREHOLDINGS
The issued capital of the Company as at 4 August 2021 is 75,153,848 ordinary fully paid shares. All issued
ordinary fully paid shares carry one vote per share.
Ordinary Shares
Shares Range
1-1,000
1,001-5,000
5,001-10,000
10,001-100,000
100,001 and above
Total
Unmarketable parcels
Holders
235
517
254
439
92
Units
150,448
1,413,741
2,001,368
14,589,135
%
0.20
1.88
2.66
19.41
56,999,156
75.84
1,537
75,153,848
100.00
There were 150 holders of less than a marketable parcel of ordinary shares representing a total of 68,368 shares.
2. TOP 20 SHAREHOLDERS AS AT 4 AUGUST 2021
Name
1 TATTARANG
2 TISIA NOMINEES PTY LTD
3 ANTHONY GRIST
4 DR JASON LOVERIDGE
5 MR DAVID JERIMIAH MCAULIFFE
6 JK NOMINEES PTY LTD
7 ALEXANDRA JEAN SINCLAIR
8 MRS KATHRYN SALKIlLD
9 THE UNIVERSITY OF BIRMINGHAM
Number of
shares
8,846,154
4,000,000
3,597,700
3,374,462
3,350,001
3,000,000
2,500,000
2,293,000
2,000,000
10 BANNABY INVESTMENTS PTY LIMITED
1,625,000
11 SUNSET CAPITAL MANAGEMENT PTY LTD
1,518,175
12 BNP PARIBAS NOMINEES PTY LTD HUB24 CUSTODIAL SERV LTD
13 CITYSCAPE ASSET PTY LTD
14 CITICORP NOMINEES PTY LIMITED
15 SANDHURST TRUSTEES LTD
16 J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
17 PETER KYROS PTY LTD
18 PALLA NOMINEES PTY LTD
19 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
20 MAGAURITE PTY LTD
1,390,000
1,250,000
1,184,837
1,081,924
655,050
583,616
580,000
561,504
560,000
%
11.77
5.32
4.79
4.49
4.46
3.99
3.33
3.05
2.66
2.16
2.02
1.85
1.66
1.58
1.44
0.87
0.78
0.77
0.75
0.75
TOP 20 TOTAL
TOTAL REMAINING HOLDERS BALANCE
TOTAL
43,951,423
31,202,425
58.48
41.52
75,153,848
100.00
50
INVEX THERAPUTICS LTD 3. UNQUOTED SECURITIES
The unlisted options over shares in the Company as at 4 August 2021 are as follows:
Holder
MR JASON LOVERIDGE
ALEXANDRA JEAN SINCLAIR
CIPA INVESTMENTS PTY LTD
WACC PTY LTD
DR MEGAN BALDWIN
CAROL PARISH
PHILUCHNA PTY LTD
DAVID JERIMIAH MCAULIFFE
EMMA HILTON
TOTAL
4. VOTING RIGHTS
See note 12 of the financial statements.
Number of
options held
% of issued
capital held
800,000
800,000
800,000
750,000
400,000
400,000
400,000
200,000
60,000
17.35
17.35
17.35
16.27
8.68
8.68
8.68
4.34
1.30
4,610,000
100.00%
5. SUBSTANTIAL SHAREHOLDERS AS AT 4 AUGUST 2021
Holder
TATTARANG
TISIA NOMINEES PTY LTD
Total
Number of
options held
% of issued
capital held
8,846,154
4,000,000
12,846,154
11.77
5.32
17.09
6. RESTRICTED SECURITIES SUBJECT TO ESCROW PERIOD
There are no restricted securities.
7. ON-MARKET BUYBACK
There is currently no on-market buyback program for any of Invex’s listed securities.
8. COMPANY CASH AND ASSETS
In accordance with Listing Rule 4.10.19, the Company confirms that it has been using the cash and assets it
had acquired at the time of admission and for the year ended 30 June 2021 in a way that is consistent with
its business objective and strategy.
This financial report includes the consolidated financial statements and notes of the Group consisting of
Invex Therapeutics Ltd and its controlled entity (Invex Therapeutics UK).
The Group’s functional and presentation currency is Australian Dollars ($).
A description of the Group’s operations and principal activity is included in the review of operations and
activities in the Directors’ report on pages 6–20. The Directors’ Report is not part of the Consolidated
Financial Report.
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52
INVEX THERAPUTICS LTD Corporate Directory
Directors:
Dr Jason Loveridge
Professor Alexandra Sinclair
Dr Thomas Duthy
Dr Megan Baldwin
Mr David McAuliffe
Company Secretary:
Ms Narelle Warren
Registered Office & Principal Place of Business:
Level 1, 38 Rowland St
SUBIACO WA 6008
Tel: +61 8 6382 0137
Website: www.invextherapeutics.com
Auditors:
BDO Audit (WA) Pty Ltd
38 Station St
SUBIACO WA 6008
Bankers:
Westpac Banking Corporation
Solicitors:
Steinepreis Paganin
Level 4, The Read Buildings
16 Milligan St
PERTH WA 6000
Share Registry:
Automic Registry Services
Telephone: 1300 288 664
International: +61 2 9698 5414
Website: www.automicgroup.com.au
ASX code: IXC
ideate
Co.
53
ANNUAL REPORT 2021