Financial Report
30 JUNE 2024
Contents
1
Chairman’s Letter
5
Directors’ Report
17
Auditor's Independence Declaration
18
Consolidated Statement of Profit or
Loss and Other Comprehensive Income
19
Consolidated Statement of
Financial Position
20
Consolidated Statement of
Changes in Equity
21
Consolidated Statement of
Cash Flows
22
Notes to the Consolidated
Financial Statements
38
Consolidated Entity
Disclosure Statement
39
Directors’ Declaration
40 Independent Auditor’s Report
44
Corporate Governance Statement
45
ASX Additional Information
iii
Corporate Directory
ii
INVEX THERAPEUTICS LTD
1
FINANCIAL REPORT 2024
Chairman’s letter
On behalf of the Board of Invex
Therapeutics Ltd (Invex, the
Company) and its controlled
entity (Group), the Company
hereby presents the Invex Annual
Report to shareholders for the
year ended 30 June 2024 (FY24).
The FY24 year was a challenging
one for the Company, with the
early closure of the Idiopathatic
Intracranial Hypertension (IIH)
registration-directed Phase III
clinical trial for Presendin™, a
sustained-release Exenatide
formulation that has been shown
to lower intracranial pressure,
a hallmark of IIH patients. The
remainder of the financial year
was spent on cost effectively
completing the close-out of the
trial, restructuring the Company
given IIH was the only clinical trial
of the Group and maximising a
return to shareholders of surplus
cash held on the balance sheet
for purposes of completing the
Phase III trial.
Closure of IIH EVOLVE Phase III
Clinical Trial
On 21 August 2023, the Board
made the difficult decision, in
the interest of all shareholders,
to close the trial for new patients
with immediate effect and to take
the necessary steps to complete
an orderly wind down and
subsequent close-out of the trial
in majority by 31 December 2023
to preserve cash.
IIH-EVOLVE was a placebo-
controlled, double-blind trial
which aimed to randomise 240
patients with newly diagnosed
IIH to determine the efficacy
and safety of Presendin™ versus
placebo, administered once
weekly over 24 weeks. The
primary endpoint of the trial was
the change in intracranial pressure
from baseline with key secondary
endpoints related to vision and
headache outcome measures.
The decision to close the trial
was taken in response to an
independent market assessment
which highlighted major future
impacts to IIH market opportunity
for Presendin™, with current
pricing for GLP-1 receptor
agonists (GLP-1RA) rendering
Presendin™ uneconomic in IIH
and achieving a reimbursement
premium for Presendin™ for
Invex reflective of its orphan
drug status becoming a major
challenge.
The strategic evaluation of
Invex’s IIH EVOLVE Phase III
clinical trial program investigating
Presendin™ (Exenatide - another
type of GLP-1RA) was initiated in
response to the rapidly evolving
market uptake of GLP-1RAs for
the treatment of obesity with
or without co-morbidities such
as type II diabetes, along with
a significant late-stage pipeline
of new obesity agents in both
oral and injectable formats
expected to enter the market in
coming years.
The link between obesity and
IIH is well established. Patients
with IIH are typically female, and
more than 90% of these sufferers
are obese. The primary principle
of IIH management is weight
loss, which is considered the
disease modifying intervention
of choice according to the
2018 IIH Consensus Treatment
Guidelines. Exenatide does not
exhibit the same weight loss
characteristics as other GLP-1RAs
from the IIH Phase II Pressure trial
reported in 2020 and therefore
could be at material risk of
obsolescence or substitution in
treating IIH patients if regulatory
approval and reimbursement
was eventually sought by Invex
following a clinical trial.
As a result of a number of
interviews with independent
opinion leaders in IIH and
reimbursement representatives
in key European markets, along
with recommendations provided
to Invex, the Board made the
decision that the continuation
of the trial and the necessary
expenditure required to complete
recruitment under a revised IIH
EVOLVE trial was not viable.
Restructuring
As a result of the premature
termination of the trial, the
Company restructured its cost
base to reflect the reversion to a
pre-clinical stage of development
for Exenatide in other disorders
associated with raised intracranial
pressure, including traumatic
brain injury (TBI) and glaucoma.
The Group’s clinical team who
were based in the UK and
dedicated to the oversight of
the IIH Phase III trial were unable
to be redirected elsewhere in
the Company, and regrettably
were made redundant during
the financial year. The last
UK-based employee completed
their employment with Invex on
1 February 2024. The Group is
now structured appropriately to
progress the Exenatide assets
through further pre-clinical
development as necessary while
also assessing new opportunities
to strengthen the Group’s pipeline
and development potential
moving forward. This was in
addition to the resignation of the
Company’s previous UK-based
Chairman who was also a key
2
INVEX THERAPEUTICS LTD
Chairman’s letter continued
scientific consultant to Invex and
our UK-based Executive Director /
Chief Scientific Officer who held
oversight responsibilities of IIH
EVOLVE, in early July. The loss
of our entire UK team during
the financial year resulted in
significantly more workload
for our small remaining team
who were required to take over
responsibility of this global trial
and provide additional services
to Invex to ensure IIH EVOLVE
was closed in a cost effective and
expeditious manner to preserve
cash in the business. I thank them
for all their efforts during that
difficult period for Invex.
$14.0 million Equal Access
Capital Return
On 1 November 2023, the
Company announced a return
of $14.0 million to shareholders
representing approximately
19 cents per share, by way of an
equal access capital return for
the purposes of the Corporations
Act. This initiative was in response
to the closure of the IIH EVOLVE
clinical trial, and the Board’s
careful assessment of ongoing
capital requirements, given the
reduced level of clinical trial
activity. The return of $14.0 million
considered the discharge of
remaining forecast costs relating
to the closure of the IIH EVOLVE
Phase III clinical trial, while
balancing the medium-term
funding requirements of Invex’s
existing programs in TBI and
glaucoma, which are at a much
earlier stage of development
and require significantly
less investment.
The Group maintains balance
sheet flexibility to continue Invex’s
existing programs and to explore
new strategic opportunities to
add value to the Company’s core
intellectual property.
The Company sought and
received shareholder approval at
a General Meeting of shareholders
on 28 November 2023. The
capital return payment was
made on 18 December 2023. On
20 March 2024 Invex announced
the Australian Taxation Office
(ATO) had published a Class
Ruling (CR 2024/17) in relation to
Invex’s $0.19 per share return of
capital.
The ATO Class Ruling confirmed
that no part of the capital return
would be assessable as a dividend
for Australian taxation purposes
for Invex shareholders. The tax
consequences for a Shareholder
with respect to the capital return
may vary depending upon
the Shareholder’s individual
circumstances. Shareholders
should consult their own tax
adviser as to the potential tax
consequences for them with
respect to the capital return.
New US patent Granted for
Exenatide in TBI and European
Patent in Hydrocephalus
The Group made solid
progress in building out its
intellectual property across new
therapeutic areas with raised
intracranial pressure, including
TBI and hydrocephalus. On
23 August 2023, the Group
announced the United States
Patent and Trademark Office
(USPTO) granted the Group a
new US patent entitled “Elevated
Intracranial Pressure Treatment”
(patent number 11,738,067),
covering the use of Exenatide in
disorders associated with raised
intracranial pressure including
additional new claims in brain
injury and brain trauma.
On 22 November 2023, the Group
announced the Decision to Grant
from the European Patent Office
for European patent number
EP4000630 titled “Elevated
intracranial pressure treatment”.
The patent provides additional
claims for the use of Exenatide
and other GLP-1 receptor agonists
in reducing elevated intracranial
pressure (ICP) associated with
the treatment of hydrocephalus,
normal pressure hydrocephalus
or meningitis. Hydrocephalus is a
neurological disorder associated
with an increased volume of
cerebrospinal fluid (CSF) within
the cerebral ventricles that
typically is associated with
increased ICP. The hydrocephalus
market was worth US$3.3 billion
globally in 2022.
3
FINANCIAL REPORT 2024
Receipt of $1.2 million UK
Government R&D Tax Rebate
On 21 June 2024 the Group
received £633k (approximately
A$1.2 million) to the Company’s
wholly owned UK subsidiary
from the UK government for
eligible R&D expenditures
made by Invex during the 2023
financial year. The 2023 financial
year represented a significant
R&D spend for the Company,
predominately associated with the
IIH EVOLVE Phase III clinical trial.
The funds partially offset gross
R&D spend for that year. A further
claim for the 2024 financial year
is anticipated to be prepared and
submitted in the second half of
the 2024 calendar year.
Financials
The Group recorded a net loss
after tax of $1.64 million for
the year ended 30 June 2024
(FY24), a decrease of 79% on
the prior corresponding period
(pcp), this was largely due to
lower R&D costs of $2.04 million
(FY23: $7.40 million), reflecting
the closure of the the IIH EVOLVE
trial, no manufacturing costs of
drug product (Presendin™) and
placebo from Peptron during
the period (FY23: $0.74 million).
In addition, there was also lower
share-based payment expenses of
$0.14 million (FY23: $0.48 million).
The corporate and
administrations costs were
$1.17 million (FY23: $1.13 million).
The Group remains in a
strong financial position with
cash and cash equivalents of
$6.03 million as at 30 June 2024
(FY23: $22.47 million).
Corporate Governance
There were major changes to the
Board composition during the
year. On 3 July 2023, the Group
announced the resignations
of Dr Jason Loveridge,
Non-Executive Chairman and
Professor Alexandra Sinclair,
Executive Director and Chief
Scientific Officer, effective
10 July 2023.
The resignations of Dr Loveridge
and Professor Sinclair were in
response to discussions with
major shareholders who indicated
to the Company that, following
the ASX release on 28 June 2023,
they no longer supported their
positions as Directors of the
Company. Consequently, both
Directors felt it was in the best
interests of all shareholders to
tender their resignations.
Dr Loveridge was Chairman
of Invex since March 2019 and
Professor Sinclair an Executive
Director since June 2019. Both
made considerable contributions
to the Company, including an
Initial Public Offering and listing
on the Australian Stock Exchange
(ASX) and material development
of the Company’s therapeutic
assets. Professor Sinclair and
Dr Loveridge ceased their
engagement with the Company in
October 2023.
The Board would like to express
sincere thanks to Dr Loveridge
and Professor Sinclair for their
tireless efforts in moving the
Exenatide program in IIH into a
Phase III clinical trial. Although the
early termination of the trial was a
difficult decision for the Company
both Jason and Alex, as
co-founders of the Company,
were passionate advocates
for Invex and the research
undertaken to find treatments for
patients with raised intracranial
pressure, including IIH.
On 8 November 2023, the Group
announced the appointment
of Mr David Wheeler as a
Non-Executive Director of the
Company, effective 8 November
2023. David has more than
30 years of Senior Executive
Management, Directorships, and
Corporate Advisory experience.
He is a foundation Director and
Partner of Pathways Corporate,
a boutique Corporate Advisory
firm that undertakes assignments
on behalf of family offices,
private clients, and ASX listed
companies. David is a Fellow
of the Australian Institute of
Company Directors (FAICD).
On 18 June 2024, the Group
announced that Dr Megan
Baldwin had advised the Group
of her decision to retire as a
Non-Executive Director of the
Company effective 30 June 2024.
The Board wishes to sincerely
thank Dr Baldwin for her service
to Invex where she served as a
Non-Executive Director since
February 2021. Dr Baldwin
was a strong and significant
contributor to the Board, joining
the Company at a critical point as
the Group advanced Exenatide
from Phase II to Phase III clinical
trials in IIH.
4
INVEX THERAPEUTICS LTD
Chairman’s letter continued
Concluding Remarks
The 2024 financial year has
proven a difficult one for the
Company, with the closure of the
IIH EVOLVE Phase III clinical trial.
The Group is in a strong financial
position despite the closure of
the trial, as the expenditure was
expected to ramp up significantly
in FY24 and FY25 as the study
expanded clinical sites and
completed recruitment.
The Board moved decisively
to return surplus capital to
shareholders, to expeditiously
complete the trial closure process
on time and under budget, while
examining the potential for new
applications of Exenatide in
other raised intracranial pressure
disorders, including traumatic
brain injury and glaucoma.
In addition, the Group continues
to assess certain opportunities
that may complement Invex’s
existing intellectual property
assets within the neurological
field that aims to generate
additional shareholder value
over time. These discussions
remain ongoing.
We look forward to an improved
2025 financial year as the Board
seeks to generate additional
shareholder value on these
strategic priorities.
Mr David McAuliffe
Non-Executive Chairman
5
FINANCIAL REPORT 2024
Directors’ Report
Your Directors present their report together with the consolidated financial statements of Invex Therapeutics
Ltd (Invex or Company) and its controlled entity (Group) for the financial year ended 30 June 2024.
DIRECTORS
The name of the Directors in office for the year ended 30 June 2024 until the date of this report are as
follows. All Directors were in office for the entire year unless otherwise stated.
Dr Thomas Duthy
Executive Director
Appointed 1 October 2020
Dr Duthy has over 20 years of direct financial market and executive level/Board experience with ASX
listed companies. He is a Director and Founder of Nemean Group, which provides corporate advisory and
investor relations (IR) services in the Life Sciences and Technology sectors. This included an IR/Corporate
Development consultancy role with Nova Eye Medical (ASX:EYE), during which time a $100 million all-cash
sale of their Lasers & Ultrasound business to Lumibird Group was completed (2020). He has also provided
IR advisory services to Limeade (ASX:LME), which announced a $112 million all cash takeover by WebMD
Health Services in June 2023, representing a 325% premium to the prevailing market price.
Prior to establishing Nemean Group 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).
Current directorships – Neurotech International Limited and Arovella Therapeutics Limited
Former directorships held in last three years – PharmAust Limited – resigned 9 May 2024, Respiri Limited -
resigned 19 April 2022
Interests in shares and options – 285,661 shares and 500,000 unlisted options
Mr David McAuliffe
Non-Executive Chairman
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 Limited
Former directorships held in last three years – None
Interests in shares and options - 3,350,001 shares
Mr David Wheeler
Non-Executive Director
Appointed 8 November 2023
Mr Wheeler has more than 30 years of Senior Executive Management, Directorships, and Corporate
Advisory experience. He is a foundation Director and Partner of Pathways Corporate a boutique Corporate
Advisory firm that undertakes assignments on behalf of family offices, private clients, and ASX listed
companies. David is a Fellow of the Australian Institute of Company Directors (FAICD).
6
INVEX THERAPEUTICS LTD
Directors’ Report continued
Current directorships
Non-Executive Chairman – OZZ Resources Ltd from May 2022, Protean Energy Ltd from May 2017, Avira
Resources Ltd from September 2018
Non-Executive Director - Ragnar Metals Ltd from December 2017, PVW Resources Limited from August 2017,
MOAB Ltd (previously Delecta Ltd) from June 2020, Cycliq Group Ltd from June 2021, Earth Energy Ltd
(previously Cardle Resources Ltd) from October 2021, Wellfully Ltd from May 2024
Former directorships held in last three years
Non-Executive Chairman – Blaze International Limited resigned November 2021
Executive Chairman – Health House International Limited resigned May 2023
Non-Executive Director – Syntonic Limited resigned May 2022, Athena Resources Limited resigned
September 2022, Color TV Limited resigned September 2023, Tyranna Resources Limited resigned June 2024
Interests in shares and options - Nil
Dr Megan Baldwin
Non-Executive Director
Appointed 16 February 2021 (resigned 30 June 2024)
Dr Baldwin is CEO and Managing Director of Opthea Limited (ASX:OPT; NASDAQ:OPT), a late-stage
biopharmaceutical company developing a novel therapy, OPT-302, 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 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 currently over-seeing the
expansion of the company’s management team in the US and preparing for commercialization of OPT-302.
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 as Deputy Chair. Dr Baldwin is
considered an independent Director.
Current directorships – Opthea Limited
Former directorships held in last three years – Ausbiotech
Interests in shares and options - 50,000 unlisted options
Ms Narelle Warren
Company Secretary
Ms Warren is a Chartered Accountant with over twenty-five 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 ICP including TBI, stroke
and hydrocephalus. In addition, the Group has generated early-stage data on the use of Exenatide in the
treatment of glaucoma, through the lowering of intraocular pressure in the eye.
Presendin™ is the Group’s filed (and granted) trademark name for reformulated Exenatide.
The principal activity of the Group during the year has been to manage the close out of the Phase III IIH
EVOLVE clinical trial and explore new potential applications for Exenatide in TBI and other neurological
disorders with raised ICP, consistent with the Group’s patents.
7
FINANCIAL REPORT 2024
OPERATING RESULTS
The result of the Group for the year ended 30 Jun 2024 was a loss of $1,64 million (2023: $7.75 million loss).
The net loss of the Group predominantly related to Research & Development costs of $2.04 million (2023:
$7.40 million) associated with the Phase III clinical trial, intellectual property prosecution, administration
and corporate costs of $1.1 million (2023: $1.125 million) and non-cash items; notably share-based payments
of $0.14 million (2023: $0.481 million).
REVIEW OF OPERATIONS
During the year, the Group initially focussed on addressing the slower than anticipated recruitment and
delay in site activations which impacted the Group’s timelines on recruitment into the IIH EVOLVE trial. The
Board, having consulted extensively with its regulatory and clinical experts, decided to significantly amend
the existing protocol for the IIH EVOLVE trial and sought the requisite authorities’ feedback and ethics
committee approvals for a revised protocol. Overall, the changes were expected to be cash neutral with
respect to the original IIH EVOLVE trial costing, with recruitment anticipated to materially accelerate due to
an expected significant reduction in pre-screen and screen failures.
In parallel, the Group engaged a specialised global healthcare intelligence group to undertake an analysis
on the potential future risks to the addressable market for Presendin™ for IIH. This comprised a detailed
market assessment initiated to understand the risk of approved GLP-1RAs to Invex’s IIH market opportunity,
given the strong correlation between IIH and obesity in female patients.
However, as a result of the independent analysis of the IIH Market and effects of GLP-1RAs on the Group’s
core value proposition Presendin™, the Board made the decision that the continuation of the trial (including
under a modified protocol) and the necessary expenditure required to complete recruitment under the
revised IIH EVOLVE trial, was not viable.
The Company restructured its operations considerably as a result, with the resignation of the key
management personnel comprising of Dr Jason Loveridge (Chairman/consultant) and Professor Alex Sinclair
(Executive Director and Chief Scientific Officer) in July and who held overall clinical oversight of IIH EVOLVE
along with all remaining UK clinical staff who were also made redundant during the financial year. Clinical trial
close-out responsibilities for IIH EVOLVE were assumed by the small remaining corporate team in Australia.
For the remainder of the financial year, the Group effectively managed, in a cost and time effective
manner, the close-out of the Phase III clinical trial of Presendin™ in IIH and rationalised its operations to
reflect the Group’s Exenatide pipeline, which following the Phase III closure comprised of pre-clinical stage
opportunities in TBI and glaucoma.
The Group retained sufficient funds following the $14.0 million equal access capital return, for the size and
nature of the Group’s operations in FY25 and potentially beyond.
LIKELY DEVELOPMENTS
None
EQUAL ACCESS CAPITAL RETURN
A $14.0 million equal access capital return representing $0.1863 cents per share was paid to eligible
shareholders on 18 December 2023.
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
No 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.
8
INVEX THERAPEUTICS LTD
Directors’ Report continued
MEETINGS OF DIRECTORS
During the year the following Director meetings were held.
Board Meetings
Director
Number Eligible
to Attend
Number Attended
Dr Thomas Duthy
9
9
Mr David McAuliffe
9
9
Mr David Wheeler
5
5
Dr Megan Baldwin
9
9
Dr Jason Loveridge
1
1
Prof Alexandra Sinclair
1
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
Number Under
Option
22 November 2022
1 December 2026
$0.67
550,000
1 December 2022
1 December 2026
$0.67
560,000
Total
1,110,000
INSURANCE OF OFFICERS AND INDEMNITIES
Invex paid a premium to insure the Directors and 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.
The Group has not, during or since the end of the financial year, indemnified or agreed to indemnify the
auditor of the company or any related entity against a liability incurred by the auditor.
During the financial year, the company has not paid a premium in respect of a contract to insure the auditor
of the company or any related entity.
PROCEEDINGS ON BEHALF OF THE 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.
9
FINANCIAL REPORT 2024
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 20 of the consolidated financial report.
The directors are satisfied that the provision of non-audit services during the year is compatible with
the general standard of independence for auditors imposed by the Corporations Act 2001. The Directors
are satisfied that the services disclosed within Note 20 did not compromise the external auditors’
independence for the following reasons:
• all non-audit services are reviewed and approved by the Board of Directors prior to commencement to
ensure they do not adversely affect the integrity and objectivity of the auditor; and
• the nature of the services provided does not compromise the general principles relating to auditor
independence in accordance with APES 110: Code of Ethics for Professional Accountants (including
Independence Standards) set by the Accounting Professional and Ethical Standards Board.
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.
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 were:
Director
Date of appointment/resignation
Role
Dr Jason Loveridge
Appointed 8 March 2019/ Resigned 10 July 2023
Non-Executive Chair
Prof Alexandra Sinclair
Appointed 28 June 2019/ Resigned 10 July 2023
Executive Director
Dr Thomas Duthy
Appointed 1 October 2020
Executive Director
Dr Megan Baldwin
Appointed 16 February 2021/
Resigned 30 June 2024
Non-Executive Director
David McAuliffe
Appointed 8 March 2019
Non-Executive Director
David Wheeler
Appointed 8 November 2023
Non-Executive Director
Narelle Warren
Appointed 8 March 2019
CFO & Company Secretary
Carol Parish
Appointed 1 July 2022/Resigned 1 February 2024
Chief Operating Officer
10
INVEX THERAPEUTICS LTD
Directors’ Report continued
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 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 $400,000 per annum and was
approved by shareholders at its Annual General Meeting of shareholders in November 2021.
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.
11
FINANCIAL REPORT 2024
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
Executive’s 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 Executive’s contract.
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 Incentive Plan (ESIP) 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 incentive securities granted to Directors and Employees are considered to represent the value of the
services received over the vesting period of the incentive security, the assessed value of the options are
recognised and expensed over the vesting period. Incentive securities vesting during the period of issue are
fully expensed under the accounting standards.
Other than incentive securities 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 2023 Annual General Meeting (AGM)
At the 2023 AGM, 97.5% of the votes received supported the adoption of the remuneration report for the
year ended 30 June 2023. The Company did not receive any specific feedback at the AGM regarding its
remuneration practices.
Remuneration consultants
The Group did not engage any remuneration consultants during the year.
The Group may 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.
12
INVEX THERAPEUTICS LTD
Directors’ Report continued
Service agreements
The details of the key terms of the revised remuneration from 1 June 2024 and agreements are set out below:
Name
Term of
agreement
Remuneration
Termination benefit
Executive Directors
Dr Thomas Duthy
Open
$172,000
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
Fixed
remuneration
2024
Performance
based
remuneration (%)
2024
Executive Directors
Dr Thomas Duthy
339,583
4.94
Non-Executive Directors
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 Director’s appointment, including governance, compliance with the Company’s
Constitution, committee appointments, and re-election;
• the Director’s 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.
The Non-Executive Director fees as of 30 June 2024 have been agreed as follows:
Name
Term of agreement
Remuneration
Termination
benefit
Non-Executive Directors
David McAuliffe - Non-Executive fee
Shareholder Approval by rotation
$30,000
Nil
David Wheeler - Non-Executive fee
Shareholder Approval by rotation
$30,000
Nil
13
FINANCIAL REPORT 2024
Remuneration of Key Management Personnel
Details of the remuneration of the Directors and the KMP’s of the Group are found below:
Short-term employee benefits
Post-
employment
benefits
Share-based
payments
Total
Performance
based
2024
Cash salary &
fees
Cash bonus
Consulting
fee
Termination
benefit
Super-
annuation
Pensions
Options
Non-Executive Directors
$
$
$
$
$
$
$
%
Dr Jason Loveridge
1,667
—
58,3703
—
—
36,529
96,566
37.83
Dr Megan Baldwin
55,000
—
—
—
—
(2,715)
52,285
(5.19)
David McAuliffe
57,239
—
—
—
—
—
57,239
—
David Wheeler
36,167
—
—
—
—
—
36,167
—
Total Non-Executive
Directors
150,073
—
58,370
—
—
33,814
242,257
13.96
Executives
Narelle Warren
244,2501
—
—
—
—
9,476
253,726
3.73
Prof Alexandra Sinclair
85,929
—
—
—
1,947
31,963
119,839
26.67
Dr Thomas Duthy
339,5832
—
—
—
—
17,645
357,228
4.94
Carol Parish
171,453
—
—
82,2044
20,419
37,194
311,270
11.95
Total Executives
841,215
—
—
82,204
22,366
96,278
1,042,063
9.23
Total
991,288
—
58,370
82,204
22,366
130,092
1,284,320
10.13
1. This amount is in relation to Ms Warren’s Company Secretary, Finance and role with the Company and paid by the Company to Concept Biotech Pty Ltd an entity which Narelle Warren and
David McAuliffe are shareholders and directors. Additional services amounting to $90,000 were provided from 10 July by Ms Warren for Company Secretary and Financial services required
as a result of restructuring of the Group including managing costs relating to closure of the trial within time and budget and additional responsibilities due to resignation of executives based
in the UK.
2. This amount is in relation to Dr Duthy’s Executive Director role with the Company and paid by the Company to Nemean Group Pty Ltd. Additional services amounting to $138,750 from
10 July 2023 were provided by Dr Duthy for Executive management services required as a result restructuring of the Group including managing costs relating to closure of the trial within
time and budget and additional responsibilities due to resignation of executives based in the UK.
3. This amount is in relation to Dr Loveridge’s consulting services with the Company and paid by the Company to Warambi Ltd. Dr Loveridge resigned as a Director on 10 July 2023 and ceased
his consultancy on 10 October 2023.
4. This amount is relates to statutory and voluntary redundancy payments for termination of Carol Parish’s employment with the Company effective 1 February 2024.
14
INVEX THERAPEUTICS LTD
Directors’ Report continued
Short-term employee benefits
Leave
allowances
Post-
employment
benefits
Share-based
payments
Total
Performance
based
2023
Cash salary &
fees
Cash bonus
Consulting
fee
Annual and
LSL
Super-
annuation
Pensions
Options
Non-Executive Directors
$
$
$
$
$
$
$
%
Dr Jason Loveridge
60,000
—
198,4943
—
—
97,470
355,964
27.38
Dr Megan Baldwin
50,000
—
—
—
—
40,780
90,780
44.92
David McAuliffe
50,000
—
—
—
—
—
50,000
—
Total Non-Executive
Directors
160,000
—
198,494
—
—
138,250
496,744
27.83
Executives
Narelle Warren
135,0001
—
—
—
—
36,408
171,408
21.24
Prof Alexandra Sinclair
293,859
—
—
—
5,561
85,286
384,706
22.17
Dr Thomas Duthy
180,0002
—
—
—
—
100,721
280,721
35.88
Carol Parish
262,209
—
—
—
49,477
101,673
413,359
24.60
Total Executives
871,068
—
—
—
55,038
324,088
1,250,194
25.90
Total
1,031,068
—
198,494
—
55,038
462,338
1,746,938
26.46
1. This amount is in relation to Ms Warren’s Company Secretary, Finance and role with the Company and paid by the Company to Concept Biotech Pty Ltd an entity which Narelle Warren and
David McAuliffe are shareholders and directors.
2. This amount is in relation to Dr Duthy’s Executive Director role with the Company and paid by the Company to Nemean Group Pty Ltd.
3. This amount is in relation to Dr Loveridge’s consulting services with the Company and paid by the Company to Warambi Ltd.
15
FINANCIAL REPORT 2024
SHARE-BASED COMPENSATION
Incentive Securities
The Company’s current Employee Incentive Plan (ESIP) was approved by Shareholders on 25 November
2021. The Incentive Plans are 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 ESIP, participants have not yet been granted incentive securities. Incentive securities 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 were granted under the Employee Share Option Plan(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 is recognised and expensed over the vesting
period. Options vesting during the period of issue are fully expensed under the accounting standards.
During the year to 30 June 2024 there were no unlisted options granted. 8,082,000 options issued to
Directors and employees were forfeited due to the vesting conditions being unable to be met.
Details of the share-based component issued during the year included in the remuneration are set out below.
EQUITY INSTRUMENTS HELD BY KEY MANAGEMENT PERSONNEL
Shareholdings
The numbers of shares in the Company held during the year by each Director or KMP of Invex, including
their personally related parties are set out below. There were no shares granted during the reporting year as
compensation.
2024
Name
Balance at
the start of
the year
Capital
Raising
shares
subscribed
for
Disposals
On Market
Purchases/
On
appointment
Balance at
the end of
the year
Directors
Dr Thomas Duthy
106,923
—
—
178,738
285,661
David McAuliffe
3,350,001
—
—
—
3,350,001
David Wheeler
—
—
—
—
—
Dr Megan Baldwin
—
—
—
—
—
Narelle Warren
200,000
—
—
—
200,000
Dr Jason Loveridge
3,374,426
—
—
—
3,374,426
Prof. Alexandra Sinclair
2,500,000
—
—
—
2,500,000
Carol Parish
—
—
—
—
—
Total
9,531,350
—
—
178,738
9,710,088
16
INVEX THERAPEUTICS LTD
Directors’ Report continued
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.
2024
Name
Balance at
the start of
the year
Granted as
compensation
Forfeited/
Expired
Balance at
end of the
year
Vested and
exercisable
Un-vested
Fair value
at grant
date
Directors and
KMP
Dr Thomas
Duthy
1,800,000
— (1,300,000)
500,000
250,000
250,000
$0.21
David
McAuliffe
200,000
—
(200,000)
—
—
—
—
Dr Megan
Baldwin
600,000
—
(550,000)
50,000
50,000
—
$0.21
David Wheeler
—
—
—
—
—
—
—
Narelle Warren
848,000
—
(624,000)
224,000
112,000
112,000
$0.23
Dr Jason
Loveridge
2,080,000
— (2,080,000)
—
—
—
$0.21
Prof. Alexandra
Sinclair
1,920,000
—
(1,920,000)
—
—
—
$0.21
Carol Parish
1,520,000
— (1,240,000)
280,000
280,000
—
$0.23
Total
8,968,000
— (7,914,000)
1,054,000
692,000
362,000
LOANS WITH KEY MANAGEMENT PERSONNEL
There were no loans to or from key management personnel during the year ended 30 June 2024.
OTHER TRANSACTIONS WITH KEY MANAGEMENT PERSONNEL
There were no other services provided with key management personnel which are not disclosed.
This is the end of the Remuneration Report.
Signed in accordance with a resolution of the Board of Directors.
David McAuliffe
Non-Executive Chairman
Perth, Western Australia, 22 August 2024
17
FINANCIAL REPORT 2024
Auditors’ Independence Declaration
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an
Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form
part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth, WA 6000
PO Box 700 West Perth WA 6872
Australia
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
DECLARATION OF INDEPENDENCE BY ASHLEIGH WOODLEY TO THE DIRECTORS OF INVEX
THERAPEUTICS LTD
As lead auditor of Invex Therapeutics Ltd for the year ended 30 June 2024, I declare that, to the best of
my knowledge and belief, there have been:
1.
No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2.
No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Invex Therapeutics Ltd and the entity it controlled during the period.
Ashleigh Woodley
Director
BDO Audit Pty Ltd
Perth
22 August 2024
18
INVEX THERAPEUTICS LTD
Consolidated Statement
of Profit or Loss and Other Comprehensive Income
For the year ended 30 June 2024
Note
2024
$
2023
$
Other income
4
1,704,074
1,256,168
Research and development expenditure
5
(2,038,777)
(7,400,491)
Finance, compliance and administration expenses
5
(1,169,604)
(1,124,992)
Share-based payment expenses
17
(137,502)
(480,541)
Loss before income tax from continuing operations
(1,641,809)
(7,749,856)
Income tax expense/benefit
6
—
—
Loss for the year from continuing operations
(1,641,809)
(7,749,856)
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
10
(37,548)
18,143
Total other comprehensive income for the year, net of tax
attributable to members of the Group
(1,679,357)
(7,731,713)
Loss for the year is attributable to:
Owners of Invex Therapeutics Ltd
(1,679,357)
(7,731,713)
Total comprehensive income for the year is attributable to:
Owners of Invex Therapeutics Ltd
(1,679,357)
(7,731,713)
Loss per share (cents)
11
(2.18)
(10.31)
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in
conjunction with the accompanying notes.
19
FINANCIAL REPORT 2024
Consolidated Statement
of Financial Position
AS AT 30 JUNE 2024
Note
2024
$
2023
$
ASSETS
Current Assets
Cash and cash equivalents
7
6,025,068
22,470,243
Other receivables
94,983
333,565
Total Current Assets
6,120,051
22,803,808
TOTAL ASSETS
6,120,051
22,803,808
LIABILITIES
Current Liabilities
Trade and other payables
8
431,630
1,572,370
Total Current Liabilities
431,630
1,572,370
TOTAL LIABILITIES
431,630
1,572,370
NET ASSETS
5,688,421
21,231,438
EQUITY
Contributed equity
9
22,412,270
36,413,432
Reserves
10
2,497,268
2,397,314
Accumulated losses
12
(19,221,117)
(17,579,308)
TOTAL EQUITY
5,688,421
21,231,438
The above Consolidated Statement of Financial Position should be read in conjunction with the
accompanying notes.
20
INVEX THERAPEUTICS LTD
Consolidated Statement
of Changes in Equity
For the year ended 30 June 2024
Contributed
Equity
$
Accumulated
Losses
$
Reserves
Total
Equity
$
Balance as at 1 July 2023
36,413,432
(17,579,308)
2,397,314
21,231,438
Loss for the year
—
(1,641,809)
—
(1,641,809)
Fx reserve movement
—
—
(37,548)
(37,548)
Total comprehensive (loss) for the year
(1,641,809)
—
(1,641,809)
Share-based payment reserve movement
—
—
137,502
137,502
Capital return
(14,001,162)
—
—
(14,001,162)
Balance as at 30 June 2024
22,412,270
(19,221,117)
2,497,268
5,688,421
Contributed
Equity
$
Accumulated
Losses
$
Reserves
Total
Equity
$
Balance as at 1 July 2022
36,413,432
(9,829,452)
1,896,903
28,480,883
Loss for the year
—
(7,749,856)
—
(7,749,856)
Fx reserve movement
—
—
19,870
19,870
Total comprehensive (loss) for the year
—
(7,749,856)
—
(7,749,856)
Share-based payment reserve movement
—
—
480,541
480,541
Issue of share capital, net of transaction costs
—
—
—
—
Balance as at 30 June 2023
36,413,432
(17,579,308)
2,397,314
21,231,438
The above Consolidated Statement of Changes in Equity should be read in conjunction with the
accompanying notes.
21
FINANCIAL REPORT 2024
Consolidated Statement
of Cash Flows
For the year ended 30 June 2024
Note
2024
$
2023
$
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees
(4,148,087)
(8,125,307)
R&D Tax rebate
1,212,256
459,085
Interest received
491,818
797,083
Net cash outflow from operating activities
13
(2,444,013)
(6,869,139)
CASH FLOWS USED IN FINANCING ACTIVITIES
Capital return to shareholders
(14,001,162)
—
Net cash outflow from financing activities
(14,001,162)
—
Net decrease in cash and cash equivalents held
(16,445,175)
(6,869,139)
Cash and cash equivalents at the beginning of the year
22,470,243
29,339,382
Cash and cash equivalents at end of financial year
7
6,025,068
22,470,243
The above Consolidated Statement of Cash Flows should be read in conjunction with accompanying
the notes.
22
INVEX THERAPEUTICS LTD
Notes to the Consolidated
Financial Statements
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.
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) 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 2024 and the results of all subsidiaries 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.
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.
23
FINANCIAL REPORT 2024
(b) 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.
(c) 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.
(d) 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.
(e) 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.
(f) 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.
(g) 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.
(h) 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.
24
INVEX THERAPEUTICS LTD
Notes to the Consolidated
Financial Statements continued
(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.
(j) 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.
(k) 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.
(l) 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.
25
FINANCIAL REPORT 2024
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.
(m) 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.
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.
26
INVEX THERAPEUTICS LTD
Notes to the Consolidated
Financial Statements continued
4. OTHER INCOME
2024
$
2023
$
R&D Tax rebate
1,212,256
459,085
Interest income
491,818
797,083
1,704,074
1,256,168
5. LOSS FOR THE YEAR
The loss for the year before income tax includes the following specific expenses:
2024
$
2023
$
(a) Research and development expenses
Manufacturing expenses
—
743,560
Phase III Clinical Trial
1,081,424
3,847,049
Employee costs
209,943
292,842
Consultants
284,809
1,789,049
COO costs
274,076
311,687
R&D Consumables
27,434
—
CSO - Executive director fees
87,876
299,421
Patent expenses
73,215
116,883
Total
2,038,777
7,400,491
(b) Administration expenses
Accounting and company secretarial fees
291,222
148,227
ASX, ASIC and bank fees
44,742
52,623
Executive Director’s fees
339,582
180,000
Non-Executive Director’s fees
150,055
160,000
Legal fees
29,544
30,769
Rent and office expenses
15,614
28,238
Audit, corporate advice and tax fees
84,041
60,914
Travel and entertainment
58,548
102,913
Insurance
94,603
176,597
Investor relations and PR expenses
15,227
112,368
Share registry and shareholder meetings
36,974
23,536
Other general expenses
—
10,247
Fx (gain)/losses
(2,077)
26,738
Website and IT expenses
11,529
11,822
Total
1,169,604
1,124,992
27
FINANCIAL REPORT 2024
6. INCOME TAX
2024
$
2023
$
(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
—
—
—
—
(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
(1,641,809)
(7,749,856)
Prima facie tax benefit on loss from ordinary activities before
income tax at 30% (2023: 30%)
(492,543)
(2,324,957)
Tax effect of:
- share-based payments
41,251
144,162
- intellectual property costs
21,965
134,661
- entertainment
3,664
3,651
- R&D consultants
50,583
99,597
- tax differential rate
73,708
703,698
Tax losses and temporary differences not recognised
301,373
1,239,188
Income tax expense/(benefit)
—
—
The applicable weighted average effective tax rate are as
follows:
0%
0%
(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
—
—
28
INVEX THERAPEUTICS LTD
Notes to the Consolidated
Financial Statements continued
2024
$
2023
$
(d) Unrecognised Net Deferred tax assets
Patents
26,278
29,197
Accruals
8,827
10,200
Business related costs
7,291
12,679
Australian tax losses
2,207,205
1,935,421
Unrealised fx losses
11,778
12,401
Foreign tax losses
1,128,935
2,126,555
Capital raising costs in equity
33,222
120,643
Net Deferred tax assets not brought to account
3,423,534
4,247,096
7. CASH AND CASH EQUIVALENTS
2024
$
2023
$
Cash at bank and on hand
6,025,068
22,470,243
6,025,068
22,470,243
8. TRADE AND OTHER PAYABLES
2024
$
2023
$
Trade payables
5,598
1,142,947
Accruals and other payables
426,032
429,423
431,630
1,572,370
Trade payables are non-interest bearing and are normally settled on 30-day terms.
9. CONTRIBUTED EQUITY
2024
$
2024
Number
of shares
2023
$
2023
Number
of shares
Ordinary shares on issue – fully paid
22,412,270
75,153,848
36,413,432
75,153,848
22,412,270
75,153,848
36,413,432
75,153,848
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
2024
$
2024
Number
of shares
2023
$
2023
Number
of shares
Balance at beginning of financial
year
36,413,432
75,153,848
36,413,432
75,153,848
Capital return
(14,001,162)
—
—
—
Balance at end of financial year
22,412,270
75,153,848
36,413,432
75,153,848
29
FINANCIAL REPORT 2024
10. RESERVES
2024
2023
$
$
Share-based payment reserve
2,516,674
2,379,172
Foreign currency translation reserve
(19,406)
18,142
2,497,268
2,397,314
Nature and Purpose of Reserve
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
year 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.
Options outstanding at 30 June 2024
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
—
—
(2,200,000)
—
—
20 Oct 2020 20 Oct 2023
$1.30
400,000
—
—
(400,000)
—
—
18 Nov 2020 18 Nov 2023
$1.30
800,000
—
—
(800,000)
—
—
8 April 2021
8 April 2024
$1.10
400,000
—
—
(400,000)
—
—
22 Nov 2022 1 Dec 2026
$0.67 3,600,000
—
—
(3,050,000)
550,000
300,000
1 Dec 2022
1 Dec 2026
$0.67
1,792,000
—
—
(1,232,000)
560,000
448,000
9,192,000
—
—
(8,082,000) 1,110,000
748,000
Reconciliation of movement in Share-based payment reserve:
Number of
Options
Value
$
Opening Balance - 1 July 2023
2,379,172
Share-based payment expense in respect to employee options on issue at
30 June 2024
560,000
54,109
Share-based payment expense in respect to Director options on issue at
30 June 2024
550,000
83,393
Closing Balance – 30 June 2024
1,110,000
2,516,674
30
INVEX THERAPEUTICS LTD
Notes to the Consolidated
Financial Statements continued
11. LOSS PER SHARE
2024
2023
Basic and Diluted (Loss) per Share – cents
$
$
Total basic and diluted loss per share – cents
(2.18)
(10.31)
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.
The following table reflects the loss and share data used in the basic and diluted loss per share:
2024
2023
$
$
Net loss attributable to members of the Group
(1,641,809)
(7,749,856)
Earnings used in calculating basic and diluted earnings per share
from continuing operations
(1,641,809)
(7,749,856)
12. ACCUMULATED LOSSES
2024
2023
$
$
Opening accumulated losses
(17,579,308)
(9,829,452)
Net loss attributable to members of the Group
(1,641,809)
(7,749,856)
Accumulated losses
(19,221,117)
(17,579,308)
31
FINANCIAL REPORT 2024
13. RECONCILIATION OF NET CASH FLOWS OPERATING ACTIVITIES TO
OPERATING (LOSS) AFTER TAX
2024
$
2023
$
Loss (after income tax) for the year
(1,641,809)
(7,749,856)
Non-cash items included in profit or loss:
Share-based payment expenses
137,502
480,541
Unrealised fx reserve movements
(37,547)
19,870
Net changes in working capital:
Increase in trade and other receivables
238,559
(187,852)
Increase/(decrease) in trade and other payables
(1,140,718)
568,158
Net cash used in operating activities
(2,444,013)
(6,869,139)
Non-cash investing and financing activities disclosed in other notes are:
Share-based payment expense (refer Note 17).
FX reserve movements (refer Note 10).
14. 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 2024 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
2024
Floating
Interest
Rate
1 Year or
Less
1 to 5 Years
Non-
Interest
Bearing
Total
$
$
$
$
$
Interest-bearing financial instruments
Cash and cash equivalents
6,025,068
—
—
—
6,025,068
6,025,068
—
—
—
6,025,068
32
INVEX THERAPEUTICS LTD
Notes to the Consolidated
Financial Statements continued
Fixed Interest
Rate Maturing
2023
Floating
Interest
Rate
1 Year or
Less
1 to 5 Years
Non-
Interest
Bearing
Total
$
$
$
$
$
Interest-bearing financial instruments
Cash and cash equivalents
22,470,243
—
—
—
22,470,243
22,470,243
—
—
—
22,470,243
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.
The following table details the expected contractual maturity for its non-derivative financial liabilities.
2024
Total
$
1 year or
less
$
1 – 5 years
$
5+ years
$
Financial liabilities due
Trade and other payables
5,598
5,598
—
—
5,598
5,598
—
—
2023
Total
$
1 year or
less
$
1 – 5 years
$
5+ years
$
Financial liabilities due
Trade and other payables
1,142,947
1,142,947
—
—
1,142,947
1,142,947
—
—
Credit Risk Exposure
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.
2024
$
2023
$
Cash and cash equivalents:
AA rated
6,025,068
22,470,243
33
FINANCIAL REPORT 2024
Foreign currency risk
The consolidated entity undertakes certain transactions denominated in foreign currency and is exposed to
foreign currency risk through foreign exchange rate fluctuations. 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.
15. RELATED PARTY TRANSACTIONS
Key Management Personnel
There were no key management personnel, other than the directors and the CFO/Company Secretary,
during the year ended 30 June 2024.
The names of each person holding the position of director of the Company during the financial year are set
out below:
• Dr Jason Loveridge (resigned 10 July 2023)
• Prof. Alexandra Sinclair (resigned 10 July 2023)
• Dr Thomas Duthy
• Mr David Wheeler (appointed 8 November 2023)
• Dr Megan Baldwin (resigned 30 June 2024)
• Mr David McAuliffe
• Ms Narelle Warren
• Ms Carol Parish (terminated 1 February 2024)
Transactions with key management personnel
(i) Total key management personnel remuneration is as follows:
2024
$
2023
$
Short Term Benefits
1,049,658
1,229,562
Post-Employment Benefits
22,366
55,038
Termination Benefits
82,204
—
Share-based payments
130,092
462,338
1,284,320
1,746,938
(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.
16. 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:
Ownership interest
Principal place of business /
2024
2023
Name
Country of incorporation
%
%
Invex Therapeutics Ltd
United Kingdom
100
100
34
INVEX THERAPEUTICS LTD
Notes to the Consolidated
Financial Statements continued
17. SHARE-BASED PAYMENTS
Share-based payments made during the year ended 30 June 2024 are summarised below.
Recognised Share-based payment expense
2024
$
2023
$
Options granted to Directors as incentive
83,393
324,256
Options granted to Employees as incentive
54,109
156,285
137,502
480,541
Options granted to Directors and Employees for services
The Group’s current Employee Share Option Plan (ESIP) was approved by Shareholders on 25 November
2021. The previous Employee Share Option Plan (ESOP) was approved by the Board of Directors on
20 May 2019 (“incentive Plans”). The Incentive Plans are 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 previous 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 and directors 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 year of issue are fully expensed under the
accounting standards. There were no new incentive securities granted during the financial year. The total
Directors and Employee Options expense for the year is outlined below.
Tranche
Valuation
Date
Expiry
Date
Exercise
Price
Balance
at start
of year
Granted
during
the year
Lapsed
Cancelled
during
the year
Vested
at year
end
Total
Total
Share-
based
payment
expense for
the year
1
22 Nov
2019
22 Nov
2023
$0.60 2,200,000
—
(2,200,000)
—
—
—
2
20 Oct
2020
20 Oct
2023
$1.30
400,000
—
(400,000)
—
—
—
3
18 Nov
2020
18 Nov
2023
$1.30
800,000
—
(800,000)
—
—
—
4
8 April
2021
8 April
2024
$1.10
400,000
—
(400,000)
—
—
—
5
22 Nov
2022
1 Dec
2026
$0.67 3,600,000
—
(3,050,000) 300,000
550,000
83,393
6
1 Dec
2022
1 Dec
2026
$0.67
1,792,000
—
(1,232,000) 448,000
560,000
54,109
Total
9,192,000
— (8,082,000) 748,000 1,110,000
137,502
35
FINANCIAL REPORT 2024
Appropriate values for the options using the Black Scholes Model applying the following inputs.
Tranche
5
6
Exercise price
$0.87
$0.87
Expected volatility
60%
60%
Expiry date (years)
4.18
4.00
Expected dividends
Nil
Nil
Risk free rate
3.86%
3.86%
Value per option
$0.21
$0.23
The vesting conditions attached to the Tranche 5 and 6 Director and Employee Options are as follows:
• 25% of the Options will vest and become exercisable upon completion of 12 months continuous service
from date of issue; and
• 25% of the Options vest and become exercisable upon completion of 24 months continuous service from
date of issue.
• 25% of the Options vest and become exercisable completion of recruitment for Phase III clinical trial.
• 25% of the Options vest upon completion at the phase 3 clinical trial read out.
The weighted average remaining contractual life of options outstanding at the end of the year was
2.41 years.
18. MATTERS SUBSEQUENT TO END OF FINANCIAL YEAR
There are 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.
36
INVEX THERAPEUTICS LTD
Notes to the Consolidated
Financial Statements continued
19. PARENT ENTITY INFORMATION
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
Parent
2024
$
2023
$
Loss after income tax
(3,514,395)
(7,160,991)
Total comprehensive income
(3,514,395)
(7,160,991)
Statement of financial position
Parent
2024
$
2023
$
Total current assets
4,916,320
22,367,406
Total non-current assets
—
—
Total current liabilities
410,718
446,203
Total liabilities
410,718
446,203
Equity
Issued capital
22,412,270
36,413,432
Reserves
2,497,268
2,397,313
Accumulated losses
(20,403,936)
(16,889,542)
Total equity
4,505,604
21,921,203
20. AUDITOR’S REMUNERATION
2024
$
2023
$
Amounts paid or payable to BDO for:
Audit services
– an audit or review of the financial report of the entity
41,291
42,414
Total audit services
41,291
42,414
Corporate advisory services
—
2,500
Taxation services
14,800
4,000
Total other services
14,800
6,500
The BDO entity performing the audit of the group transitioned from BDO Audit (WA) to BDO Audit Pty Ltd
on 19 April 2024. The disclosures include amounts received or due and receivable by BDO Audit (WA)
Pty Ltd, BDO Audit Pty Ltd and their respective related entities.
37
FINANCIAL REPORT 2024
21. DIVIDENDS
There are no dividends paid or payable at 30 June 2024.
22. COMMITMENTS
There are no other commitments which require disclosure as at 30 June 2024 (30 June 2023: nil).
23. 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.
24. CONTINGENT LIABILITIES AND CONTINGENT ASSETS
The Directors are not aware of any contingent liabilities or contingent assets which require disclosure as at
30 June 2024 (30 June 2023 : nil).
38
INVEX THERAPEUTICS LTD
Consolidated Entity Disclosure Statement
Name of entity
Type of
entity
Trustee,
partner or
participant in
joint venture
% of share
capital held
Country of
Incorporation
Australian
or foreign
resident
Foreign tax
jurisdiction
of foreign
resident
Invex
Therapeutics Ltd
Body
Corporate
—
N/A
Australia
Australian
N/A
Invex
Therapeutics Ltd
Body
Corporate
—
100
United
Kingdom
Foreign
United
Kingdom
39
FINANCIAL REPORT 2024
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 2024 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;
(c) The consolidated entity disclosure statement, as set out on page 41, is in accordance with the
Corporations Act 2001, and is true and correct as at 30 June 2024; and
(d) 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 Chairman
Perth, Western Australia, 22 August 2024
40
INVEX THERAPEUTICS LTD
Independent Auditor’s Report
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an
Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form
part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth, WA 6000
PO Box 700 West Perth WA 6872
Australia
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
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 2024, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
of changes in equity and the consolidated statement of cash flows for the year then ended, and notes
to the financial report, including material accounting policy information, the consolidated entity
disclosure statement and the directors’ declaration.
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Act 2001, including:
(i)
Giving a true and fair view of the Group’s financial position as at 30 June 2024 and of its
financial performance for the year ended on that date; and
(ii)
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
Report section of our report. We are independent of the Group in accordance with the Corporations
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
41
FINANCIAL REPORT 2024
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters.
Share-based Payments
Key audit matter
How the matter was addressed in our audit
In prior years, the Company issued equity instruments
to key management personnel (“KMP”). These
instruments constitute share-based payments and
accordingly are required to be recognised at their fair
value and expensed over the respective vesting
(performance) period.
During the year some share-based payments are
continuing to vest and some are to be reversed due to
failure to meet milestones.
Given the complexities and significant judgements
involved under the applicable accounting standard,
there is a risk that share based payments have been
incorrectly valued or expensed and has thusly been
recognised as a key audit matter.
As a result of the risk identified, for all share-based
payment transactions continuing to vest during the
year we have performed the following audit
procedures:
•
Reviewed the relevant agreements to obtain
an understanding of the contractual nature
and terms and conditions of the share-based
payment arrangements;
•
Held discussions with management to
understand the share-based payment
treatments in place;
•
Verified the share-based payment expense
has been recognised appropriately according
to the vesting conditions;
•
Verified, where applicable, previous share-
based payment expenses have been reversed
where the vesting condition has failed to be
achieved; and
•
Reviewed the adequacy of the related
disclosures in the financial statements.
42
INVEX THERAPEUTICS LTD
Independent Auditor’s Report continued
Other information
The directors are responsible for the other information. The other information comprises the
information in the Group’s annual report for the year ended 30 June 2024, but does not include the
financial report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the Financial Report
The directors of the Company are responsible for the preparation of:
a) the financial report that gives a true and fair view in accordance with Australian Accounting
Standards and the Corporations Act 2001 and
b) the consolidated entity disclosure statement that is true and correct in accordance with the
Corporations Act 2001, and
for such internal control as the directors determine is necessary to enable the preparation of:
i)
the financial report that gives a true and fair view and is free from material misstatement,
whether due to fraud or error; and
ii)
the consolidated entity disclosure statement that is true and correct and is free of misstatement,
whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
43
FINANCIAL REPORT 2024
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 9 to 16 of the directors’ report for the
year ended 30 June 2024.
In our opinion, the Remuneration Report of Invex Therapeutics Ltd, for the year ended 30 June 2024,
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with
Australian Auditing Standards.
BDO Audit Pty Ltd
Ashleigh Woodley
Director
Perth, 22 August 2024
44
INVEX THERAPEUTICS 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 2024 Corporate Governance Statement, approved by the Board and applicable
as at 30 June 2024 are available of the Group’s website:
https://invextherapeutics.com/corporate-governance/
45
FINANCIAL REPORT 2024
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 1 August 2024 is 75,153,848 ordinary fully paid shares. All issued
ordinary fully paid shares carry one vote per share.
Ordinary Shares
Shares Range
Holders
Units
%
1-1,000
189
106,913
0.14
1,001-5,000
379
1,019,918
1.36
5,001-10,000
175
1,364,827
1.82
10,001-100,000
314
10,939,893
14.56
100,001 and above
84
61,722,297
82.13
Total
1,141
75,153,848
100.00
Unmarketable parcels
There were 629 holders of less than a marketable parcel of ordinary shares representing a total of
1,491,232 shares.
2. TOP 20 SHAREHOLDERS AS AT 1 AUGUST 2024
Name
Number of
shares
%
1
MINDEROO GROUP PTY LTD
5,000,000
6.65
2
CELTIC CAPITAL PTE LTD
4,450,000
5.92
3
TATTARANG PTY LTD
3,846,154
5.12
4
TISIA NOMINEES PTY LTD
3,725,000
4.96
5
MR JASON LOVERIDGE
3,374,462
4.49
6
MR DAVID JERIMIAH MCAULIFFE
3,225,001
4.29
7
JK NOMINEES PTY LTD
2,750,000
3.66
8
PROF ALEXANDRA JEAN SINCLAIR
2,500,000
3.33
9
SUNSET CAPITAL MANAGEMENT PTY LTD
2,390,000
3.18
10
MRS KATHRYN MARY SALKILLD
2,293,000
3.05
11
BANNABY INVESTMENTS PTY LIMITED
1,625,000
2.16
12
PORJED PTY LTD
1,600,000
2.13
13
ROCK THE POLO PTY LTD
1,400,000
1.86
14
OAKTONE NOMINEES PTY LTD
1,338,518
1.78
15
CITYSCAPE ASSET PTY LTD
1,150,000
1.53
16
CABLETIME PTY LTD
1,120,000
1.49
17
MR ANDREW CLAYTON
1,000,000
1.33
18
HAMMERHEAD HOLDINGS PTY LTD
1,000,000
1.33
19
MR ANTHONY DE NICOLA & MRS TANYA LOUISE DE NICOLA
750,000
1.00
20
ENDLESS SUMMER (WA) PTY LTD
750,000
1.00
TOP 20 TOTAL
45,537,134
59.26
TOTAL REMAINING HOLDERS BALANCE
29,616,714
40.74
TOTAL
75,153,848
100.00
46
INVEX THERAPEUTICS LTD
ASX Additional Information continued
3. UNQUOTED SECURITIES
The unlisted options over shares in the Company as at 1 August 2024 are as follows:
Holder
Number of
options held
% of issued
capital held
CIPA INVESTMENTS PTY LTD
500,000
45.04
GAJA HOLDINGS PTY LTD
50,000
4.50
EMMA HILTON
56,000
5.04
CAROL PARISH
280,000
25.23
PHILUCHNA PTY LTD
224,000
20.18
Total
1,110,000
100.00
4. VOTING RIGHTS
See note 12 of the financial statements.
5. SUBSTANTIAL SHAREHOLDERS AS AT 1 AUGUST 2024
Holder
Number of
shares held
% of issued
capital held
TATTARANG
8,846,154
11.77
Mr Jason Peterson and related entities
7,990,000
10.63
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 2024 in a way that is consistent with
its business objective and strategy.
iii
FINANCIAL REPORT 2024
Corporate Directory
Directors:
Dr Thomas Duthy
Dr Megan Baldwin (resigned 30 June 2024)
Mr David McAuliffe
Dr Jason Loveridge (resigned 10 July 2023)
Professor Alexandra Sinclair (resigned 10 July 2023)
Mr David Wheeler (appointed 8 November 2023)
Company Secretary:
Ms Narelle Warren
Registered Office & Principal Place of Business:
Level 2, 38 Rowland Street
Perth WA 6008
Tel: +61 8 6382 0137
Website: www.invextherapeutics.com
Auditors:
BDO Audit Pty Ltd
Level 9
Mia Yellagonga Tower 2
5 Spring Street
Perth WA 6000
Bankers:
Westpac Banking Corporation
Level 4 Tower 2 Brookfield Place
123 St Georges Terrace
Perth WA 6000
Solicitors:
Steinepreis Paganin
Level 4, The Read Buildings
16 Milligan Street
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
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 activities is included in the review of
operations and activities in the Directors’ report
on pages 7 to 18. The Directors’ Report is not part
of the Consolidated Financial Report.