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Nyrada

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FY2021 Annual Report · Nyrada
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Improving Lives 
Offering Hope

ANNUAL REPORT
For the year ended 30 June 2021

NYRADA INC 
ABRN 625 401 818

NYRADA INC (ASX:NYR)  

2 

 
 
Annual Report FY21 

Corporate Directory 

Board of Directors 

John Moore 

Graham Kelly (resigned 8 September 2020) 

Peter Marks 

Rüdiger Weseloh 

Marcus Frampton 

Christopher Cox 

Ian Dixon (appointed 8 September 2020) 

Company Secretary 

David Franks 

Registered office in Australia and 
principal place of business 

Suite 2, Level 3 
828 Pacific Highway 
Gordon, NSW 2072 
Australia 

Tel:  +61 2 9053 1990 

Registered office in place  
of incorporation 

1209 Orange Street 
Wilmington, Delaware 19801 
United States of America  

Share/CDI Registry 

Automic Pty Ltd 

Level 5, 126 Phillip Street 
Sydney, NSW 2000 

Auditor 

William Buck Audit (Vic) Pty Ltd 

Stock exchange listing 

Level 20, 181 William Street 
Melbourne, VIC 3000 

Nyrada Inc. instruments registered for trade 
on the Australian Securities Exchange are 
CHESS Depositary Interests (CDIs).  

One CDI is equivalent to one Share, being 
Class A Common Stock. 

ASX Code 

Website 

NYR 

www.nyrada.com 

3 

 
 
NYRADA INC (ASX:NYR)  

Contents 

Chairman’s Letter 

Nyrada Statement of Values 

CEO Report 

Directors’ Report 

Auditor’s Independence Declaration 

Independent Auditor’s Report 

Consolidated Statement of Profit or Loss and Other Comprehensive Income 

Consolidated Statement of Financial Position 

Consolidated Statement of Changes in Equity 

Consolidated Statement of Cash Flows 

Notes to the Financial Statements 

Directors’ Declaration 

Shareholder Information 

5 

7 

8 

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39 

40 

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61 

62 

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Annual Report FY21 

Chairman’s Letter 

Dear Shareholders, 

It is with pleasure that I present Nyrada’s Annual Report for the financial year 
ended 30 June 2021, our first full year of operation as an ASX listed company, 
and one in which a great deal of progress has been made. 

Nyrada  is  a  pharmaceutical  company  specialising  in  drug  discovery  and 
early-stage drug development. We focus on diseases with significant market 
size and considerable unmet patient need. Specifically, our drug candidates 
target cholesterol-lowering and brain injury prevention.  

Our strategy is to advance highly optimised drug candidates towards a key 
value inflection point, such as an efficacy signal, and out-license them early 
to  large  pharma,  where  the  risk-reward  equation  is  most  favourable  for 
Nyrada shareholders. Coupled with judicious capital allocation, this strategy 
facilitates a high growth model focused on maximising shareholder value. 

We  have  two  core  drug  development  programs  that  are  both  advancing 
well:  our  Cholesterol-Lowering  Program  and  Brain  Injury  Program.  Both 
Programs  completed  multiple  preclinical  studies  during  the  year, 
culminating  in  the  selection  of  optimised  lead  drug  candidates  to  take 
forward into Phase I human trials. We are currently running the remaining 
necessary preclinical studies as we prepare to transition to a clinical-stage 
pharmaceutical company.  

The  lead  product  candidate  for  our  Cholesterol-Lowering  Program  is  a 
PCSK9 inhibitor, called NYX-PCSK9i. It is designed to help patients with high 
LDL  (“bad”)  cholesterol  achieve  their  target  cholesterol  levels.    It  has  the 
potential to provide a convenient and cost-competitive oral therapy (in the 
form of a pill) for the 70% of patients at risk of cardiovascular disease who 
struggle to reach their target LDL cholesterol level despite taking a statin, 
such  as  Lipitor®  (atorvastatin,  Pfizer).    Our  aim  is  to  help  patients  reduce 
their  risk  of  cardiovascular  disease  (heart  attack  and  stroke)  which  is 
responsible  for  1-in-4  deaths  in  the  US  alone.  At  present,  patients  can 
augment  their  statin  therapy  with  a  monoclonal  PCSK9  antibody  drug, 
however,  these  are  delivered  by  subcutaneous  injection  and  are  both 
inconvenient and expensive.   

We expect to commence a first-in-human Phase I clinical trial in Australia in 
mid-2022,  to  evaluate  if  NYX-PCSK9i  lowers  LDL  cholesterol  in  healthy 
human volunteers.  A positive efficacy signal from this study would form the 
basis of business development discussions with potential industry partners 
to out-license the drug. 

Nyrada’s Brain Injury Program is advancing a neuroprotectant drug, called 
NYR-BI01,  to  limit  the  secondary  brain  injury  that  occurs  in  the  hours  and 
days  following  a  traumatic  brain  injury,  concussion,  or  stroke,  known  as 
excitotoxicity. Each year in the US alone, 2.8 million people suffer a traumatic 
brain injury and ~0.8 million suffer a stroke.  

“Our strategy is to advance highly optimised drug candidates towards 
a key value inflection point, such as an efficacy signal, and out-license 
them  early  to  large  pharma,  where  the  risk-reward  equation  is  most 
favourable  for  Nyrada  shareholders.  Coupled  with  judicious  capital 
allocation,  this  strategy  facilitates  a  high  growth  model  focused  on 
maximising shareholder value.” 

5 

 
 
NYRADA INC (ASX:NYR)  

Our drug candidate aims to improve the survivability of these events and ultimately 
reduce  a  patient’s  long-term  disability.  Critically,  no  treatments  exist  beyond 
neurosurgery and physical rehabilitation, making traumatic brain injury a serious and 
life-threatening condition.   

Preclinical  results  from  this  program  have  already  attracted  interest  from  world-
leading  scientific  teams.  In  February  2021,  we  entered  into  a  collaboration  with  the 
Walter Reed Army Institute of Research (WRAIR) in the US and the University of NSW 
Sydney  (UNSW),  to  evaluate  and  advance  our  lead  preclinical  neuroprotection 
compound for traumatic brain injury.  With around 1 in 25 military service members 
diagnosed  with  a  traumatic  brain  injury,  finding  a  treatment  to  mitigate  the 
debilitating effects of these injuries is a key priority for WRAIR. We are actively working 
with WRAIR and our partner UNSW, to apply for government grants to provide non-
dilutive  funding.    Our  CEO,  James  Bonnar  has  extensive  experience  in  developing 
neuroprotective  agents,  designing  clinical  trials,  and  securing  US  government 
funding for this area of unmet medical need. 

This  year,  we  chose  to  formalise  the  qualities  and  principles  that  guide  the  Nyrada 
team’s interactions with external stakeholders and each other, through the creation 
of a statement of values. Our values focus on improving patient health, acting with 
integrity and delivering on our promises, recognising that our differences make for a 
stronger  team, 
insights  and  outside-the-box  thinking  to  deliver 
exceptional results, and that resilience in all aspects is key. I am proud to say Nyrada’s 
statement  of  values  is  already  reflected  in  the  way  the  team  operates  and  further 
supports the company’s strong reputation in the market. 

leveraging 

Following a successful $11.5 million equity financing deal that was completed in June 
2021, Nyrada is in a sound financial position to fund the planned Phase I clinical trials 
for both our key Programs, along with all the preparatory studies. We were pleased to 
have  strong  support  from  both  existing  and  new  shareholders  for  this  financing, 
including Nyrada Directors.  

I wish to note that we were fortunate to have Mr. Ian Dixon join Nyrada’s Board as a Non-
Executive Director in September 2020. Ian is a seasoned biotechnology entrepreneur 
with more than 20 years of experience in the Australian sector, and a co-inventor of the 
technology behind Nyrada’s Cholesterol-Lowering Program, giving him deep expertise 
in the development of PCSK9 inhibitors. He is also the founder and Managing Director 
of the ASX-listed exosome medicine company, Exopharm (ASX: EX1).  

Ian replaces Dr. Graham Kelly, who resigned from the Nyrada Board during the year 
in order to focus on his duties at Noxopharm. The Board wishes to thank Graham, who 
is  Nyrada’s  founder,  for  his  vision,  guidance,  and  tireless  efforts  in  getting  the 
Company established and underway.   

On behalf of the Board, I’d like to thank our shareholders for continuing to support 
Nyrada and sharing our vision to improve lives and offer hope through innovation. I’d 
also like to extend our sincere thanks to the whole operational team for their diligent 
efforts  throughout  the  year.  Nyrada  is  led  by  our  highly  experienced  management 
team which continues to work hard to advance our programs with ongoing guidance 
from our exceptional Scientific Advisory Board.  

Looking ahead, Nyrada is entering an exciting period as it approaches first-in-human 
trials for both of its programs. We look forward to keeping you updated as we continue 
to report key milestones along the way.  

Yours sincerely,  

John Moore,  
Non-Executive Chairman 
Nyrada, Inc 

30 August 2021 

6 

 
 
Annual Report FY21 

Nyrada Statement of Values 

Our Vision: 

We can improve lives  
and offer hope  
through innovation. 

We aim to deliver novel 
treatments for diseases 
where there is an unmet 
clinical need, or where 
current treatments  
are suboptimal. 

Our Values: 

Better Health 
Outcomes 

Improving patient health is at the heart of 
everything we do.  

Straight Talking  

We say what we mean and deliver on our 
promises, both to each other and our 
stakeholders. We are transparent and act 
with integrity in everything we do. 

Diversity is a 
Strength 

We accept our differences and recognise 
that a variety of experiences and 
backgrounds creates a stronger team. We 
know we achieve more working together 
than alone. 

Innovation 
Excellence 

We leverage insights and outside-the-box 
thinking to turn complex problems into 
simple solutions. We seek to push the 
boundaries to truly see what’s possible. 

Resilience 

We are quick to anticipate obstacles and 
can pivot and adapt to ensure we stay on 
course.  We are agile in our thinking and 
embrace different points of view. 

7 

 
 
 
 
 
 
 
 
 
 
NYRADA INC (ASX:NYR)  

CEO Report 

Dear Shareholders,  

I am pleased to provide an update on Nyrada’s activity for the 2021 financial 
year,  a  busy  and  productive  year  for  the  Company.  The  team  has  made 
significant  progress  in  both  our  key  drug  development  programs  for 
Cholesterol-Lowering and Brain Injury, resulting in encouraging preclinical 
data  that  positions  us  well  for  completing  the  remaining  safety  and 
toxicology studies before we commence Phase I trials.   

Cholesterol-Lowering Program 

Our  Cholesterol-Lowering  Program  recently  delivered  very  promising 
results  in  a  second  preclinical  efficacy  study  using  a  specialised  mouse 
model.  In  an  in  vivo  study,  NYX-PCSK9i  was  shown  to  reduce  total 
cholesterol by 46% when administered on its own and by a further 65% when 
given  in  combination  with  a  statin.  Pleasingly,  NYX-PCSK9i  outperformed 
the statin drug Lipitor® in the same study, which reduced total cholesterol 
by  27%.  These  results  build  on  an  earlier,  similar  dose-range  finding  and 
efficacy study, and are particularly encouraging because the mouse model 
used in these studies possesses important human-like characteristics with 
respect  to  cardiovascular  health,  making  it  highly  predictive  of  human 
clinical  outcomes.  Importantly,  in  both  preclinical  studies  undertaken, 
NYX-PCSK9i has been well tolerated with no adverse effects observed. 

This development work follows on from an earlier cell-based study where we 
reported  NYX-PCSK9i  matched  the  efficacy  of  the  two  FDA-approved 
monoclonal  PCSK9  antibody  drugs  in  protecting  LDL  receptors  from 
degradation,  caused  by  PCSK9.  These  receptors  are  important  as  their 
function  is  to  remove  cholesterol  from  the  bloodstream.  The  two  drugs 
evaluated 
(Praluent®, 
Sanofi/Regeneron)  and  evolocumab  (Repatha®,  Amgen),  are  “injectables” 
that  are  prescribed  alongside  statins  for  patients  who  are  unable  to 
effectively lower their cholesterol levels using statins alone.  

comparison 

alirocumab 

study, 

the 

in 

Following  a  comprehensive  medicinal  chemistry  program  where  multiple 
promising  analogues  were  optimised  and  evaluated,  Nyrada  selected 
NYX-PCSK9i  to  progress  to  safety  pharmacology  and  toxicology  studies, 
before moving into a Phase I first-in-human study in mid-2022.  

“In  an  in  vivo  study,  NYX-PCSK9i  was  shown  to  reduce  total 
cholesterol by 46% when administered on its own and by a further 
65%  when  given  in  combination  with  a  statin.  Pleasingly, 
NYX-PCSK9i  outperformed  the  statin  drug  Lipitor®  in  the  same 
study, which reduced total cholesterol by 27%.” 

8 

 
 
 
 
 
Annual Report FY21 

Brain Injury Program  

The  Brain  Injury  Program  has  also  been  active  in  FY21.  The  team’s  constant  focus  on 
optimising  our  compound  to  improve  its  drug-like  characteristics  has  led  to  the 
development and selection of a new, more potent version of our brain injury candidate, 
called NYR-BI01, for our collaboration studies with WRAIR and UNSW. 

This new compound has improved solubility and tissue protein-binding properties while 
maintaining its potency in blocking calcium ion build-up in cells. This build-up of calcium 
ions  would  otherwise  activate  cell-death  pathways  and  inflammation  in  the  brain 
following brain injury.  

NYR-BI01 is also able to cross the blood-brain barrier at above therapeutic levels, meaning 
it can reach the area of the brain damaged by secondary brain injury (excitotoxicity).  

The development of this new, highly potent compound follows studies last year in which 
Nyrada achieved durable therapeutic levels of two compounds in the brain. Both were 
safe  and  well-tolerated  with  continuous  intravenous  infusion,  the  preferred  route  for 
patients suffering from moderate-severe traumatic brain injury and stroke.  

“The team has made significant progress in both our 
key  drug  development  programs  for  Cholesterol-
Lowering  and  Brain  Injury,  resulting  in  encouraging 
preclinical data that positions us well for completing 
the remaining safety and toxicology studies before we 
commence Phase I trials.” 

The team is now focused on completing the pilot work necessary before commencing 
the evaluation of NYR-BI01 in conjunction with WRAIR and UNSW in the third quarter of 
2021. Nyrada expects the initial results of the collaboration studies to be reported before 
the  end  of  the  calendar  year.  We  anticipate  commencing  the  first-in-human  Phase  I 
study in the second half of calendar year 2022. 

Our successes and good progress have been the result of a great deal of hard work from 
our talented team and I’d like to thank them for their continued commitment. Despite 
the  ongoing  challenges  presented  by  the  COVID-19  pandemic,  the  team  continues  to 
work  effectively  to  advance  our  Programs  and  there  has  been  minimal  disruption  to 
operations at our key vendors. 

Nyrada’s outlook is extremely positive, with new studies starting and a strong pipeline of 
results ahead. On behalf of the team, I want to offer everyone our best wishes and thank 
you for your ongoing support. 

Yours sincerely,   

James Bonnar 
CEO 
Nyrada, Inc 

9 

 
 
 
NYRADA INC (ASX:NYR)  

10 

 
Annual Report FY21 

Directors’ Report  

The Directors present their report, together with the financial statements, on the Consolidated Entity (referred 
to hereafter as the 'Consolidated Entity') consisting of Nyrada Inc. (referred to hereafter as the 'Company' or 
'Parent entity') and the entities it controlled at the end of, or during, the year ended 30 June 2021. 

Directors 

The following persons were directors of Nyrada Inc. during the whole of the financial year and up to the date 
of this report, unless otherwise stated: 

• 

John Moore  

Non-Executive Chairman 

•  Graham Kelly 

Non-Executive Director (Resigned 8 September 2020) 

•  Peter Marks 

Non-Executive Director 

•  Rüdiger Weseloh 

Non-Executive Director 

•  Marcus Frampton 

Non-Executive Director 

•  Christopher Cox 

Non-Executive Director 

• 

Ian Dixon 

Non-Executive Director (Appointed 8 September 2020) 

John Moore 
Non-Executive Chairman, joined the Board in June 2019 

John Moore currently serves as Chairman of Trialogics, a clinical trial informatics 
business and Chairman of Scientific Industries (SCND-OTCQB) a producer of 
laboratory instruments for the life sciences industry. John was CEO of Acorn 
Energy from 2006 to 2015, during which time the CoaLogix business was acquired 
for US$11 million and sold for US$101 million, and the Comverge business listed in 
the US before its sale to Constellation Energy. In 2002 he was a Partner and CEO of 
Edson Moore Healthcare Ventures and acquired for US$148 million a portfolio of 
sixteen drug delivery investments from Elan Pharmaceuticals. He is a graduate of 
Rutgers University, US. 

Interest in shares  
and options 

358,423 shares and 3,600,000 unlisted options 

Special responsibilities  Chair of the Board. 

Member of the Audit and Risk Committee 

Member of the Remuneration and  
Nomination Committee 

Noxopharm Limited (ASX:NOX) – resigned  
16 July 2019 

Directorship held in 
other listed entities 
(last 3 years) 

11 

 
 
 
 
 
 
 
 
 
 
 
NYRADA INC (ASX:NYR)  

Peter Marks 
Non-Executive Director, joined the Board in August 2017  

Peter Marks has over 35 years' experience in corporate advisory and investment 
banking. Throughout his long career, he has specialised in capital raising, IPOs, 
cross border M&A transactions, corporate underwriting, and venture capital 
transactions for companies in Australia, the US and Israel. He has been involved in 
a broad range of transactions with a special focus on the life sciences, 
biotechnology, medical technology and high-tech segments. Peter has served as 
both an Executive and Non-Executive Director of several different entities which 
have been listed on the ASX, NASDAQ, and AIM markets.  

Peter is currently a Director of Alterity Therapeutics Limited (ASX:ATH and 
NASDAQ:ATHE), Non-Executive Director of Noxopharm Limited (ASX: NOX) and 
Non-Executive Director of Elsight Ltd (ASX:ELS). Until 31 March 2020, he was also a 
Non-Executive Director of Fluence Corporation Ltd (ASX: FLC). Peter holds an MBA 
from the University of Edinburgh, Scotland, a Bachelor of Economics, a Bachelor of 
Laws and a Graduate Diploma in Commercial Law. 

Interest in shares  
and options 

250,000 shares and 2,600,000 unlisted options 

Special responsibilities  Member of the Audit and Risk Committee 

Directorship held in 
other listed entities 
(last 3 years) 

Alterity Therapeutics Limited (ASX: ATH) - current  

Noxopharm Limited (ASX:NOX) - current  

Elsight limited (ASX:ELS) - current  

Fluence Corporation Limited (ASX:FLC) - resigned  
31 March 2020 

Christopher Cox 
Non-Executive Director, joined the Board in November 2019 

Christopher Cox is a Co-Founder and Managing Partner of Population Health 
Partners, L.P., a global private equity firm focused on innovative therapeutics with 
the potential to transform health outcomes for populations.  Prior to that, from 
January 2012 to February 2020, Chris was a partner at Cadwalader, Wickersham & 
Taft LLP, where he also served as the Chairman of Cadwalader’s Corporate 
Department and as a member of its Management Committee.  Chris remains a 
Senior Attorney of Cadwalader.  From February 2016 to March 2019, Chris was 
seconded to The Medicines Company, a global biopharmaceutical company, 
where he served as Executive Vice President and Chief Corporate Development 
Officer and was responsible for business development and strategy.  Prior to 
January 2012, Chris was a partner at Cahill Gordon & Reindel LLP. 

Chris also serves as the Chief Executive Officer of Symphony Capital Holdings, LLC, 
a private investment holding company with interests in life sciences, 
entertainment and technology. 

Chris received both his undergraduate degree and J.D. from the University of 
Missouri. 

Interest in shares  
and options 

1,425,000 shares and 1,800,000 unlisted options 

Special responsibilities  Chair of the Remuneration and  

Nomination Committee 

Directorship held in 
other listed entities 
(last 3 years) 

N/A 

12 

 
 
 
 
 
 
 
 
 
 
 
Annual Report FY21 

Marcus Frampton 
Non-Executive Director, joined the Board in June 2019 

Marcus Frampton currently serves as the Chief Investment Officer of the Alaska 
Permanent Fund Corporation (APFC), the US$82 billion sovereign wealth fund for 
the State of Alaska. Marcus manages the investment team at APFC and leads all 
investment decisions related to APFC’s investment portfolio within the guidelines 
established by APFC’s Board of Trustees. 

Before joining the APFC in 2012, Marcus held positions ranging from Investment 
Banking Analyst & Associate at Lehman Brothers (2002-2005), to private equity 
investing at PCG Capital Partners (2005-2010), and acted as an executive of a 
private equity-backed portfolio company at LPL Financial (2010-2012). In addition 
to his duties at the APFC, Marcus is also a shareholder and sits on the board of 
directors of Scientific Industries, Inc., a leading manufacturer of laboratory 
equipment and the owner of intellectual property related to bioprocessing 
systems. Marcus graduated from the University of California, Los Angeles with a 
Bachelor’s degree in Business-Economics and a Minor in Accounting. 

Interest in shares  
and options 

245,075 shares and 1,800,000 unlisted options 

Special responsibilities  Chair of the Audit and Risk Committee 

Directorship held in 
other listed entities 
(last 3 years) 

N/A 

Rüdiger Weseloh Ph.D. 
Non-Executive Director, joined the Board in June 2019 

Rüdiger Weseloh is a Senior Director of Business Development at Merck KgaA, 
Darmstadt, Germany, where over a period of 15 years he has led more than 60 
transactions for its pharmaceutical division, completing deals across the drug 
development value chain in the fields of Oncology, Rheumatology, 
Neurodegenerative diseases, and Fertility. Before Merck KgaA, Dr. Weseloh spent 5 
years as a Biotech/Pharma Equity Analyst at Gontard & Metallbank AG, Frankfurt, 
and Sal. Oppenheim, Cologne/Frankfurt, as well as 3 years as a Postdoc at the 
Max-Planck-Institute for Experimental Medicine in Goettingen. Dr. Weseloh has a 
university diploma in Biochemistry from the University of Hannover and a Ph.D.  
in Molecular Neurobiology, obtained at the Center for Molecular Neurobiology in 
Hamburg. Dr. Weseloh also serves on the Supervisory Board of Cytotools AG, 
Freiburg, Germany. 

Interest in shares  
and options 

100,000 shares and 1,800,000 unlisted options 

Special responsibilities  N/A 

Directorship held in 
other listed entities 
(last 3 years) 

N/A 

13 

 
 
 
 
 
 
 
 
 
 
 
NYRADA INC (ASX:NYR)  

Ian Dixon Ph.D. 
Non-Executive Director, joined the Board in September 2020. 

Ian Dixon has a Ph.D. in biomedical engineering from Monash University, an MBA 
from Swinburne University and professional engineering qualifications. In 2011, Dr. 
Dixon Co-Founded Cynata Inc, a company that is progressing the 
commercialisation of what has become the Cymerus technology of ASX-listed 
Cynata Therapeutics Ltd (ASX-CYP). Dr. Dixon is a co-inventor of the LEAP 
Technology owned by Exopharm. Dr. Dixon brings to the Board an extensive 
technical and entrepreneurial background in founding, building and running 
technology-based companies, in recognising the potential commercial value of 
early-stage drug development, and in understanding the challenges involved in 
drug development. Dr. Dixon is also a founder of Exopharm Ltd. During the last 
three years, Dr. Dixon has served as a director of the following listed companies: 
Medigard Ltd (ASX:MGZ) and Noxopharm Ltd (ASX:NOX). 

Interest in shares  
and options 

10,114,033 shares , 5,999,400 Performance Shares  
and 1,800,000 unlisted options  

Special responsibilities  Member of the Remuneration and  

Nomination Committee 

Directorship held in 
other listed entities 
(last 3 years) 

Exopharm Limited (ASX:EX1) - current 

Noxopharm Limited (ASX:NOX) - resigned on  
31 August 2020 

Dr. Graham Kelly Ph.D. 
Founder and Non-Executive Director, joined the Board in August 2017, resigned 8 September 2020. 

Graham  Kelly  is  a  scientist  with  50  years’  of  experience  in  drug  development  in  both  the  academic  and 
biotechnology  sectors.  Graham  is  the  Founder,  CEO  and  Managing  Director  of  Noxopharm  Limited 
(ASX:NOX), a major shareholder of Nyrada. Graham has also founded two publicly listed drug development 
companies (Novogen Limited, now Kazia and Marshall Edwards Inc), serving variously as Managing Director 
and  Executive  Chairman  of  those  companies.  Graham  holds  a  Ph.D.  from  The  University  of  Sydney,  and 
degrees in Science and Veterinary Science from The University of Sydney. 

Other current directorships' quoted above are current directorships for ASX listed entities only and excludes 
directorships of all other types of entities, unless otherwise stated.  

Former directorships in other listed entities quoted above are directorships held in the last 3 years for ASX 
listed entities only and excludes directorships of all other types of entities, unless otherwise stated. 

Company Secretary - David Franks 

David  is  a  Chartered  Accountant,  Fellow  of  the  Financial  Services  Institute  of  Australia,  Fellow  of  the 
Governance  Institute  of  Australia,  Justice  of  the  Peace,  Registered  Tax  Agent  and  holds  a  Bachelor  of 
Economics  (Finance  and  Accounting)  from  Macquarie  University.  With  over  25  years  in  finance  and 
governance  (including  company  secretarial  and  corporate  finance),  David  has  been  a  CFO,  company 
secretary  and  director  for  numerous  ASX  listed  and  unlisted  public  and  private  companies,  in  a  range  of 
industries covering energy retailing, software as a service, transport, financial services, oil and gas / mineral 
exploration,  technology,  automotive,  software  development,  wholesale  distributions,  retail,  biotechnology 
and healthcare. He has acted in these capacities for Top 200 to small-cap companies listed on ASX, including 
for companies with OTC listings. 

David  is  also  the  Company  Secretary  of  Noxopharm.  David  is  also  a  Non-Executive  Director  of  Jcurve 
Solutions Limited (ASX:JCS) and a Director, Principal and shareholder of Automic Group Pty Ltd, a service 
provider to the Company. 

14 

 
 
 
 
 
 
Annual Report FY21 

Directors’ Report 

Principal activities 

Nyrada is a preclinical stage, drug discovery and development company, specialising in novel small molecule 
drugs  to  treat  cardiovascular  and  neurological  diseases.  The  Company’s  two  lead  programs  centre  on 
cholesterol-lowering and brain injury, each targeting market sectors of significant size and unmet clinical 
need.  The  programs  are  focused  on  developing  an  oral,  small  molecule  cholesterol-lowering  drug,  and  a 
drug to treat secondary brain damage following a stroke or traumatic brain injury (TBI).  

Nyrada  is  a  Company  incorporated  in  the  state  of  Delaware  US  and  is  listed  on  the  Australian  Securities 
Exchange (ASX:NYR). 

Significant changes in the state of affairs 

There were no significant changes in the state of affairs of the Consolidated Entity during the financial year. 

Financial results 

The loss for the Consolidated Entity after providing for income tax amounted to $3,539,253 (30 June 2020: 
$5,773,667). 

The year ended 30 June 2021 operating results included the following: 

•  Research and Development Tax Incentive refund of $2,286,022 relating to the accrued FY2021 refund 
of $1,309,650 and received FY2020 refund of $976,372 (2020: $1,075,414 relating to the FY2018/2019 
refund).   

•  Research and development costs of $2,175,050 (FY2020: $1,399,999); 

•  Corporate and administration expenses of $895,839 (FY2020: $571,862);  

• 

Share-based payment expense of $1,111,622 (FY2020: $2,204,324); 

•  Professional services expense of $509,842 (FY2020: $1,005,316); and 

•  Employee benefits expense of $929,931 (FY2020: $1,342,993) 

The cash position as at 30 June 2021 was $13,750,743 (30 June 2020: $5,146,169).  

Review of operations 

During the 2021 financial year, Nyrada continued to advance its two lead drug development programs: 

•  Cholesterol-Lowering Program: an oral PCSK9 inhibitor drug for the treatment of high blood LDL-
cholesterol levels in patients at risk of cardiovascular disease, where statin drugs are poorly tolerated 
(monotherapy) or ineffective (single pill combination treatment).  

•  Brain Injury Program: a neuroprotectant drug to reduce the impact of secondary brain injury in 
patients  following  a  stroke  or  TBI,  which  can  occur  following  a  motor  vehicle  accident,  fall,  or 
sporting injury. 

Encouraging  results  have  been  reported  from  both  these  programs  throughout  the  year,  building  the 
Company’s confidence in the drug candidates that are advancing well towards Phase I human trials.  

15 

 
NYRADA INC (ASX:NYR)  

Advancing a first-ever oral cholesterol-lowering drug towards first-in-human trials 

Our Cholesterol-Lowering Program delivered a series of positive results in FY21 which led to Nyrada selecting 
NYX-PCSK9i, an optimised oral PCSK9 inhibitor, to take forward into safety pharmacology and toxicology 
studies, before entering a Phase I first-in-human study in mid-2022.  

In  July  2020,  Nyrada  achieved  a  significant  scientific  milestone  in  its  efforts  to  replace  expensive 
inconvenient, and ongoing injections with the first-ever oral PCSK9 inhibitor pill. NYX-PCSK9i demonstrated 
equivalency  to  the  two  FDA-approved  injectable  PCSK9  monoclonal  antibody  drugs,  Repatha®  (Amgen) 
and Praluent® (Sanofi/Regeneron), in healthy human white blood cells. These results opened the potential 
for NYX-PCSK9i to be used alone, or in combination with a statin.  

Very encouraging preliminary in vivo efficacy results were reported in December 2020, where NYX-PCSK9i 
demonstrated a 57% reduction in total cholesterol. These results marked an important step towards creating 
an effective, convenient, and cost-competitive single-pill treatment option for the 70% of US patients unable 
to  reach  their  target  LDL  (“bad”)  cholesterol  level  despite  taking  a  statin,  which  would  replace  ongoing 
expensive injections.1 

This proof-of-concept study was conducted in a specialised mouse model of hypercholesterolemia which is 
known to be highly predictive of human cholesterol metabolism and cardiovascular health outcomes. The 
NYX-PCSK9i results compared favourably with historical in vivo studies of the statin, Lipitor® (atorvastatin, 
Pfizer), the best-selling drug of all time, and Praluent®, in the magnitude of total cholesterol reduction.  

In January 2021, additional results from an exploratory arm in Nyrada’s in vivo cholesterol efficacy study built 
on  the  57%  reduction  in  total  cholesterol,  confirming  LDL  cholesterol  levels  were  lowered  in  a  dose-
dependent  manner  by  NYX-PCSK9i.  Importantly,  no  adverse  effects  were  observed  and  NYX-PCSK9i  was 
well-tolerated.  

Further  medicinal  chemistry  work  revealed  two  additional  candidates  (called  NYX-PCSK9i-211  and 
NYX-PCSK9i-212)  which  had  improved  potency  in  vitro  compared  to  NYX-PCSK9i.  In  May  2021,  Nyrada 
commenced a new in vivo efficacy study in the same specialised mouse model, evaluating NYX-PCSK9i in 
combination with a statin, alongside the two new drug candidates to determine if NYX-PCSK9i enhances 
the efficacy of a statin drug when co-administered. 

This  proof-of-concept  study  showed  encouraging  efficacy  with  NYX-PCSK9i  reducing  total  cholesterol  by 
65%  when  given  in  combination  with  the  statin  Lipitor®,  and  46%  when  given  as  a  monotherapy.  This 
compares  to  the  27%  reduction  achieved  using  Lipitor®  alone.  Nyrada’s  results,  reported  in  June  2021, 
compare  favourably  to  a  similar  2014  study  which  found  total  cholesterol  was  reduced  by  the  injectable 
PCSK9 monoclonal antibody, Praluent®, by 58% when given in combination with Lipitor®, and by 37% - 46% 
when given as a monotherapy. 2 

The  study  also  demonstrated  one  of  the  new  candidates  NYX-PCSK9i-211,  had  compelling  efficacy  at  the 
14-day  mark,  however  it  presented  with  tolerability  issues.  Nyrada  is  undertaking  further  medicinal 
chemistry work in a targeted approach to improve the tolerability of the compound. Results from a follow-
up exploratory analysis of the study were reported in Q1 FY22.  

Based on the strong results reported throughout the year, Nyrada has selected NYX-PCSK9i as the preferred 
compound to take forward into safety pharmacology and toxicology studies at an internationally recognised 
Contract Research Organisation, before commencing a Phase I first-in-human study in mid-2022.  

1   Wong ND et al. Prevalence of the American College of Cardiology/American Heart Association statin eligibility 

groups, statin use, and low-density lipoprotein cholesterol control in US adults using the National Health and 
Nutrition Examination Survey 2011-2012. J Clin Lipidol. 2016 Sep-Oct;10(5):1109-18. 

2   Kühnast S et al. Alirocumab inhibits atherosclerosis, improves the plaque morphology, and enhances the effects of 

a statin. J Lipid Res. 2014 Oct;55(10): 2103–2112 

16 

 
 
 
Annual Report FY21 

Developing a drug to block secondary brain damage following a stroke or traumatic brain injury  

Nyrada’s  Brain  Injury  Program  saw  significant  progress  with  its  neuroprotectant  drug  designed  to  limit 
secondary brain injury. This area of research is attracting significant international industry attention.  

Nyrada’s  Brain  Injury  Program  data  was  selected  for  publication  in  an  abstract  at  the  US  Military  Health 
System Research Symposium in July 2020. This event is the US Department of Defense’s foremost scientific 
meeting for presenting new scientific knowledge resulting from military research and development.  

Also  in  July  2020,  Nyrada’s  preclinical  pharmacokinetics  study  saw  its  brain  injury  drug  candidates 
successfully  delivered  by  continuous  intravenous  injection.  Both  candidates  reached  and  maintained 
effective therapeutic levels in the brain, resulting in the desired pharmacokinetic profiles for clinical studies. 
Continuous intravenous injection is the preferred administration route for patients who suffer a stroke or 
sustain a moderate or severe TBI.  

In addition, Nyrada performed a pilot study evaluating the intranasal route of delivery for its drug candidates. 
This is the preferred route of treatment for patients with mild TBI and concussion injury, which is common 
in sports.  

Aligned  with  Nyrada’s  business  model  to  collaborate  and  partner  early,  the  Company  achieved  a  key 
milestone announcing a new collaboration with the Walter Reed Army Institute of Research (WRAIR) and 
the University of New South Wales, Sydney (UNSW). The collaboration studies aim to examine the efficacy 
of  a  lead  preclinical  neuroprotection  compound  to  interrupt  and  minimise  the  excitotoxicity  process 
responsible for secondary damage to the brain in TBI, which can lead to a doubling of the injury size in the 
days following a TBI event.  

Most recently in June 2021, Nyrada selected a new, more potent analogue of its brain injury candidate, called 
NYR-BI01, to be taken forward into the studies with WRAIR and UNSW. NYR-BI01 showed improved potency, 
along  with  excellent  pharmacokinetic  properties  and  blood-brain  barrier  penetration.  Drug  levels  in  the 
brain  were  significantly  higher  than  those  required  to  deliver  a  therapeutic  effect  and  NYR-BI01  was 
well-tolerated  throughout  the  72-hour  study.  Importantly,  the  study  duration  aligns  with  the  therapeutic 
window for preventing secondary brain injury in patients. 

Together with WRAIR and UNSW, pilot work has commenced to determine the baseline injury signal in TBI 
animal models that are expected to be used in the studies. The animal models are highly specialised and 
mimic moderate to severe injury in humans. The injury is measured using multiple MRI techniques, which 
are commonly used in the clinical setting to assess injury localisation and volume in patients.  

Following this pilot work, Nyrada anticipates testing of NYR-BI01 in the TBI models at WRAIR will commence 
in  the  third  quarter  of  2021,  with  the  initial  results  expected  before  the  end  of  the  year.  The  Company 
anticipates commencing the first-in-human Phase I study in the second half of CY2022. 

Intellectual Property 

After  the  reporting  period,  in  July  2021,  Nyrada  was  granted  its  first  patent  for  the  Cholesterol  Lowering 
Program’s PCSK9i inhibitor by the United States Patent and Trademark Office (USPTO). The composition of 
matter patent protects Nyrada’s intellectual property (IP) around its PCSK9 inhibitor technology in the US 
and marks an important achievement in its active IP strategy. The patent number is 11091466 and its expiry 
date is 16 March 2038.  

Capital Raise 

Following encouraging preclinical results from both programs, Nyrada raised $11.5 million via a two-tranche 
Placement,  with  strong  demand  from  existing  and  new  investors.  The  issue  of  stock  in  tranche  two  was 
approved at the Company’s June 2021 Extraordinary General Meeting.  

Importantly,  the  proceeds  will  be  used  to  fund  the  planned  Phase  I  clinical  trials  for  both  the 
Cholesterol-Lowering and Brain Injury drug development programs, and enable further proof-of-concept 
studies to evaluate existing drug candidates in additional therapeutic areas to deliver shareholder value. 

17 

 
 
NYRADA INC (ASX:NYR)  

Financial Position 

Cash and cash equivalents 

Net assets / total equity  

Contributed equity 

Accumulated losses 

2021 

$ 

13,750,743  

14,491,626  

25,320,332  

2020 

$ 

5,146,169  

5,526,600  

15,607,349  

(15,555,619) 

(12,285,073) 

The Directors believe the Consolidated Entity is in a strong and stable financial position to expand its current 
operations. 

Liquidity and capital resources 

Nyrada  ended  the  financial  year  with  cash  of  $13,750,743  and  anticipates  receiving  a  Research  and 
Development tax incentive refund for FY2021 of $1,309,560 following 30 June 2021, further boosting capital 
resources. 

Matters subsequent to the end of the financial year 

On 30 July 2021 the Company announced it had been granted a US Patent for its PCSK9 Inhibitor. 

On  13  August  2021  the  Company  announced  exploratory  analysis  results  from  its  in  vivo  cholesterol 
efficacy study. 

No other matters or circumstances have arisen since 30 June 2021 that have significantly affected, or may 
significantly affect the Consolidated Entity's operations, the results of those operations, or the Consolidated 
Entity's state of affairs in future financial years. 

Future developments, prospects, and business strategies 

Disclosure of information regarding likely developments in the operations of the Company in future financial 
years  and  the  expected  results  of  those  operations  is  likely  to  result  in  unreasonable  prejudice  to  the 
Company. Information on future developments, prospects, and business strategies have only been referred 
to in the Chairman’s Letter and CEO Report. For further information on the Company’s business strategies 
and  material  risks,  refer  also  to  the  Prospectus  which  is  available  on  the  Company  website  or  ASX 
Announcements.  

Environmental regulation 

The  Consolidated  Entity  is  not  subject  to  any  significant  environmental  regulation  under  Australian 
Commonwealth or State law. 

18 

 
 
 
 
Annual Report FY21 

Directors’ shareholdings 

In this section, reference is made to Share ownership. The instruments registered for trade on the Australian 
Securities Exchange are CHESS Depositary Interests (CDIs). One CDI is equivalent to one Share, being Class 
A Common Stock. The following table sets out each director’s relevant interest in shares, debentures and 
rights  or  options  in  shares  of  Directors  of  the  Company  or  a  related  body  corporate  as  at  the  date  of 
this report: 

John Moore 

Peter Marks 

Rüdiger Weseloh 

Marcus Frampton 

Christopher Cox 

Ian Dixon 

Options Granted 

Share  
Number 

358,423 

250,000 

100,000 

245,075 

1,425,000 

10,114,033 

Options 
Number 

3,600,000 

2,600,000 

1,800,000 

1,800,000 

1,800,000 

1,800,000 

Performance 
Shares 

- 

- 

- 

- 

- 

5,999,400 

During the financial year, the following options were granted: 

No. of 
options 

Grant date 

Expiry date 

Grant date fair 
value (cents) 

1,000,000 

18/01/2021 

15/02/2021 

1,200,000 

24/02/2021 

3 years from vesting 

600,000 

600,000 

600,000 

18/01/2021 

18/01/2021 

18/01/2021 

2,000,000 

29/06/2021 

2,000,000 

29/06/2021 

2,000,000 

29/06/2021 

2,000,000 

29/06/2021 

18/01/2024 

18/01/2025 

18/01/2026 

29/06/2021 

29/06/2021 

29/06/2021 

29/06/2021 

14.14 

16.76 

9.45 

10.85 

11.99 

17.03 

17.03 

14.57 

12.10 

Grantee 

SAB Options  

James Bonnar 

Ian Dixon 

Ian Dixon 

Ian Dixon 

Broker Options 

Broker Options 

Broker Options 

Broker Options 

There has been no alteration of the terms and conditions of the above share-based payment arrangements 
since the grant date.  

19 

 
 
 
 
NYRADA INC (ASX:NYR)  

Unissued Common Stock 

Details of unissued Common Stock, interests under option and performance shares as at the date of this 
report are as follows: 

Type of Security 

Number 

Exercise price 

Expiry date 

Performance shares 

18,000,000 

Unlisted options 

Unlisted options 

Unlisted options 

Unlisted options 

6,000,000 

2,000,000 

4,000,0004 

4,000,0004 

Unlisted options 

5,000,0004 

Unlisted options 

5,000,0004 

Unlisted options 

Unlisted options 

Unlisted options 

Unlisted options 

Unlisted options 

Unlisted options 

Unlisted options 

Unlisted options 

Unlisted options 

Unlisted options 

Unlisted options 

Unlisted options 

3,600,000 

3,600,000 

3,600,000 

800,0004 

900,0004 

4,000,000 

2,000,000 

2,000,000 

1,200,000 

600,000 

600,000 

600,000 

N/A1 

0.20 

0.20 

0.22 

TBC2 

TBC2 

TBC2 

0.24 

TBC3 

TBC3 

0.24 

TBC3 

0.40 

0.60 

0.90 

TBC3 

TBC3 

TBC3 

TBC3 

25/11/2024 

30/06/2024 

25/11/2022 

16/01/2025 

5 years from  
the vesting date 

5 years from  
the vesting date 

5 years from  
the vesting date 

25/11/2023 

25/11/2024 

25/11/2025 

16/01/2023 

3 years from  
the vesting date 

29/06/2026 

29/06/2026 

29/06/2026 

3 years from  
the vesting date 

18/01/2024 

18/01/2025 

18/01/2026 

1   Performance shares convert when specified milestones are achieved, these milestones are outlined in note 9 of the 

financial statements. 

2   The exercise price is the higher of 

• 

• 

100% of the Fair Market Value (as defined in the Company’s Stock Incentive Plan) of the Shares on the date 
that Option is granted; and 

an amount equal to 110% of the volume-weighted average price of the CDIs for the period of 10 trading days 
immediately prior to the date on which that Option vests. 

3   The exercise price is the higher of 

• 

• 

100% of the Fair Market Value (as defined in the Company’s Stock Incentive Plan) of the Shares on the date 
that Option is granted; and 

an amount equal to 120% of the volume-weighted average price of the CDIs for the period of 10 trading days 
immediately prior to the date on which that Option vests. 

During the year a total of 1,441,901 Common stock/CDIs were issued on exercise of 1,441,901 unlisted options and a 
total of 2,283,755 unlisted options expired. 

The holders of these options and performance shares do not have the right to participate in any share issue 
or interest issue of the Company or of any other body corporate or registered scheme. 

20 

 
 
 
Annual Report FY21 

Dividends 

There were no dividends paid, recommended, or declared during the current or previous financial year. 

Indemnity and insurance of officers 

As permitted under Delaware law, Nyrada indemnifies its Directors and certain officers and is permitted to 
indemnify employees for certain events or occurrences that happen by reason of their relationship with, or 
position  held  at,  Nyrada.  The  Company’s  Certificate  of  Incorporation  and  By-laws  provide  for  the 
indemnification of its Directors, officers, employees and other agents to the maximum extent permitted by 
the Delaware General Corporation Law. 

Nyrada  has  entered  into  indemnification  agreements  with  its  Directors  and  certain  officers  to  this  effect, 
including the advancement of expenses incurred in legal proceedings to which the Director or officer was, 
or is threatened to be made, a party by reason of the fact that such Director or officer is or was a Director, 
officer, employee or agent of Nyrada, provided that such a Director or officer acted in good faith and in a 
manner  that  the  Director  or  officer  reasonably  believed  to  be  in,  or  not  opposed  to,  the  Company’s  best 
interests. At present, there is no pending litigation or proceedings involving a Director or officer for which 
indemnification is sought, nor is the Company aware of any threatened litigation that may result in claims 
for indemnification. 

Nyrada maintains insurance policies that indemnify the Company’s Directors and officers against various 
liabilities that might be incurred by any Director or officer in his or her capacity as such. The premium paid 
has not been disclosed as it is subject to confidentiality provisions under the insurance policy. 

Indemnity and insurance of auditor 

The Company has not, during or since the end of the financial year, indemnified or agreed to indemnify the 
auditor of the Company or any related entity against a liability incurred by the auditor. 

During the financial year, the Company has not paid a premium in respect of a contract to insure the auditor 
of the Company or any related entity. 

Meetings of Directors 

The  following  table  sets  out  the  number  of  directors’  meetings  (including  meetings  of  committees  of 
directors) held during the financial year and the number of meetings attended by each director (while they 
were a director or committee member). 

Board of  
Directors 

Audit & Risk  
Committee 

Remuneration & 
Nomination 
Committee 

Directors 

Attended 

Held 

Attended 

Held 

Attended 

Held 

John Moore  

Graham Kelly1 

Peter Marks 

Rüdiger Weseloh 

Marcus Frampton 

Christopher Cox 

Ian Dixon2 

9 

2 

9 

7 

9 

6 

7 

9 

2 

9 

9 

9 

9 

7 

2 

- 

2 

- 

2 

- 

- 

2 

- 

2 

- 

2 

- 

- 

1 

- 

- 

- 

- 

1 

- 

1 

1 

- 

- 

- 

1 

- 

1  Graham Kelly resigned as Non-Executive Director on 8 September 2020. 

2  

Ian Dixon was appointed Non-Executive Director on 8 September 2020. 

21 

 
 
 
NYRADA INC (ASX:NYR)  

Proceedings on behalf of the Company 

No  person  has  applied  to  the  Court  under  section  237  of  the  Corporations  Act  2001  for  leave  to  bring 
proceedings on behalf of the Company, or to intervene in any proceedings to which the Company is a party 
for the purpose of taking responsibility on behalf of the Company for all or part of those proceedings. 

Non-audit services 

There were no non-audit services provided during the financial year by the auditor. 

In the event non-audit services are provided by the auditor, the Board has established procedures to ensure 
the provision of non-audit services is compatible with the general standard of independence for auditors. 
These include: 

• 

all non-audit services are reviewed and approved to ensure they do not impact the integrity and 
objectivity of the auditor; and 

•  non-audit services do not undermine the general principles relating to auditor independence as set 
out in APES 110 ‘Code of Ethics for Professional Accountants’ issued by the Accounting Professional 
&  Ethical  Standards  Board,  including  reviewing  or  auditing  the  auditor’s  own  work,  acting  in  a 
management or decision-making capacity for the Company, acting as an advocate for the Company 
or jointly sharing economic risks and rewards. 

Auditor's independence declaration 

A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 
2001 is set out immediately after this Directors' report. 

Presentation Currency 

The functional and presentation currency of the Company is Australian Dollars (AUD). The financial report is 
presented in AUD Dollars with all references to dollars, cents, or $’s in these financial statements presented 
in AUD currency, unless otherwise stated. 

Jurisdiction of Incorporation 

Nyrada is a company incorporated in the State of Delaware in the United States and registered in Australia 
as a foreign company. As a foreign company registered in Australia, Nyrada is subject to different reporting 
and regulatory regimes than Australian public companies. 

Corporate Governance Statement 

The Company's corporate governance statement is located at the Company's website: 

https://www.nyrada.com/site/About-Us/corporate-governance 

22 

 
 
Annual Report FY21 

Required statements 

•  Nyrada  is  not  subject  to  charters  6,  6A,  and  6C  of  the  Corporations  Act  2001  dealing  with  the 

acquisition of its shares (including substantial holdings and takeovers). 

• 

• 

The Company’s securities are not quoted on any exchange other than the ASX. 

From the time of the Company’s admission to the ASX until 30 June 2021, the Company has used 
the cash and assets in a form readily convertible to cash, that it had at the time of admission, in a 
way that is consistent with its business objectives at that time. 

•  Under  the  Delaware  General  Corporation  Law,  shares  are  generally  freely  transferable  subject  to 
restrictions  imposed  by  US  federal  or  state  securities  laws,  by  the  Company’s  Certificate  of 
Incorporation  or  By  laws, or  by  an  agreement  signed  with  the  holders  of  the shares  at  issue.  The 
Company’s  amended  and  restated  Certificate  of  Incorporation  and  by-laws  do  not  impose  any 
specific restrictions on transfer. The Company’s CDIs were issued in reliance on the exemption from 
registration contained in Regulation S of the US Securities Act of 1933 (Securities Act) for offers that 
are made outside the US. Accordingly, the CDIs have not been, and will not be, registered under the 
Securities Act or the laws of any state or other jurisdiction in the US. 

•  As a result of relying on the Regulation S exemption, the CDIs are ‘restricted securities’ under Rule 
144 of the Securities Act. This means that you are unable to sell the CDIs into the US, or to a US person 
for the foreseeable future except in very limited circumstances after the expiration of a restricted 
period,  unless  the  re-sale  of  the  CDIs  is  registered  under  the  Securities  Act  or  an  exemption  is 
available. To enforce the above transfer restrictions, all CDIs issued bear a ‘FOR US’ designation on 
the ASX. This designation restricts any CDIs from being sold on the ASX to US persons. However, you 
are still able to freely transfer your CDIs on the ASX to any person other than a US person. In addition, 
hedging  transactions  with  regard  to  the  CDIs  may  only  be  conducted  in  accordance  with  the 
Securities Act. 

23 

 
 
NYRADA INC (ASX:NYR)  

Remuneration report (audited) 

Nyrada Inc is a Delaware incorporated company that is listed on the Australian Securities Exchange (ASX) 
and  as  such  is  subject  to  remuneration  disclosure  requirements  that  are  suitable  for  reporting  in  both 
Australia and the United States. This remuneration report forms part of the Directors’ Report and has been 
prepared  using  the  requirements  of  section  300A  of  the  Australian  Corporations  Act  2001  as  a  proxy  to 
determine the contents that the Board has chosen to report. 

This  remuneration  report,  which  forms  part  of  the  Directors’  report,  sets  out  information  about  the 
remuneration of Nyrada Inc.'s Key Management Personnel for the financial year ended 30 June 2021. The 
term ‘Key Management Personnel’ refers to those persons having authority and responsibility for planning, 
directing,  and  controlling  the  activities  of  the  Consolidated  Entity,  directly  or  indirectly,  including  any 
director (whether executive or otherwise) of the Consolidated Entity. The prescribed details for each person 
covered by this report are detailed below under the following headings: 

•  Key Management Personnel 

•  Remuneration Policy 

•  Relationship between the Remuneration Policy and Consolidated Entity performance 

•  Remuneration of Key Management Personnel 

•  Key terms of employment contracts. 

Key Management Personnel 

The Directors and other Key Management Personnel (KMP) of the Group during the financial year were: 

Non-Executive Directors 

Position 

John Moore 

Graham Kelly1 

Peter Marks 

Rüdiger Weseloh 

Marcus Frampton 

Christopher Cox 

Ian Dixon2 

Non-Executive Chairman 

Non-Executive Director 

Non-Executive Director 

Non-Executive Director 

Non-Executive Director 

Non-Executive Director 

Non-Executive Director 

Executive employees 

Position 

James Bonnar 

Chief Executive Officer 

1   Graham Kelly resigned on 8 September 2020 

2 

Ian Dixon was appointed on 8 September 2020 

With the exception of Graham Kelly and Ian Dixon, the named persons held their current position for the 
whole of the financial year and since the end of the financial year. 

24 

 
 
 
 
 
Annual Report FY21 

Remuneration Policy 

The Company has a Remuneration and Nomination Committee, which consists of Christopher Cox (Chair of 
the  Remuneration  Committee),  Ian  Dixon,  and  John  Moore  (Ian  Dixon  replaced  Graham  Kelly  on 
appointment  as  a  Director).  The  Remuneration  Policy,  which  is  set  out  below,  is  designed  to  promote 
superior  performance  and  long-term  commitment  to  the  Company.  An  overview  of  the  Remuneration  & 
Nomination Committee is outlined below. 

The Remuneration & Nomination Committee establishes, amends, reviews and approves the compensation 
and equity incentive plans with respect to senior management and employees of the Company, including 
determining  individual  elements  of  the  total  compensation  of  the  Chief  Executive  Officer  and  other 
members  of  senior  management.  The  Remuneration  &  Nomination  Committee  is  also  responsible  for 
reviewing  the  performance  of  the  Company’s  executive  officers  with  respect  to  these  elements  of 
compensation. It recommends the Director nominees for each annual general meeting and ensures that 
the Audit & Risk Committee and Remuneration & Nomination Committee have the benefit of qualified and 
experienced directors. 

Non-Executive Director remuneration 

Under the Company’s By-laws, the Directors decide the total amount paid to each Non-Executive Director 
for their services. However, under the ASX Listing Rules, the total amount paid to all Non-Executive Directors 
must not exceed in any financial year the amount fixed in a general meeting of the Company. This amount 
is capped under the By-laws at US$500,000 per annum. Any increase to the aggregate amount needs to be 
approved by CDI Holders. The Directors will seek CDI Holder approval from time to time as appropriate. The 
aggregate  annual  sum  does  not  include  any  special  remuneration  which  the  Board  may  grant  to  the 
Directors  for  special  exertions  or  additional  services  performed  by  a  Director  for  or  at  the  request  of  the 
Company, which may be made in addition to or in substitution for the Director’s fees. 

The Directors set the individual Non-Executive Director fees within the overall limit approved by CDI Holders. 
Non-Executive Directors are not provided with retirement benefits. 

Executive Director remuneration 

Executive  directors  receive  a  base  remuneration  which  is  at  market  rates  and  may  be  entitled  to 
performance-based remuneration, which is determined on an annual basis. Overall remuneration policies 
are subject to the discretion of the Board and can be changed to reflect competitive and business conditions 
where it is in the interests of the Group and shareholders to do so. Executive remuneration and other terms 
of employment are reviewed annually by the Board having regard to the performance, relevant comparative 
information and expert advice. 

The Board’s Remuneration Policy reflects its obligation to align executive remuneration with shareholders’ 
interests and to retain appropriately qualified executive talent for the benefit of the Consolidated Entity. The 
main principles are: 

• 

• 

• 

remuneration reflects the competitive market in which the Consolidated Entity operates; 

individual remuneration should be linked to performance criteria if appropriate; and 

executives should be rewarded for both financial and non-financial performance. 

The total remuneration of executives consists of the following: 

• 

• 

• 

salary – executives receive a fixed sum payable monthly in cash plus superannuation at 9.5% of salary; 

cash at-risk component – executives may participate in share and option schemes generally made 
in  accordance  with  thresholds  set  in  plans  approved  by  shareholders  if  deemed  appropriate. 
However,  the  Board  considers  it  appropriate  to  issue  shares  and  options  to  executives  outside  of 
approved schemes in exceptional circumstances; 

other  benefits  –  executives  may,  if  deemed  appropriate  by  the  Board,  be  provided  with  a  fully 
expensed mobile phone and other forms of remuneration; and 

•  performance bonus. 

The Board has not formally engaged the services of a remuneration consultant to provide recommendations 
when  setting  the  remuneration  received  by  directors  or  other  key  management  personnel  during  the 
financial year. 

25 

 
 
NYRADA INC (ASX:NYR)  

Relationship between the Remuneration Policy and Consolidated Entity performance 

The  Board  considers  that  at  this  time,  evaluation  of  the  Consolidated  Entity  financial  performance  using 
generally  accepted  measures  such  as  profitability,  total  shareholder  return  or  benchmarking  are  not 
relevant as the Consolidated Entity is in the preclinical phase of drug development. 

Short-term employee benefits 

Salary  
& fees 

Bonus 

Other 

annuation  Options4 

Total 

Post-
employment 
benefits 

Share-
based 
payments 

Super-

2021 

$ 

$ 

$ 

$ 

$ 

$ 

Non-Executive 
Directors 

John Moore 

Graham Kelly1 

Peter Marks 

Rüdiger Weseloh3 

Marcus Frampton 

Christopher Cox 

Ian Dixon2 

Executive 
Employees  

130,101 

5,189 

49,522 

66,906 

51,887 

51,887 

40,800 

James Bonnar (CEO) 

277,177 

Total  

673,469 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

182,564 

312,665 

493 

191,780 

197,462 

- 

- 

- 

- 

- 

91,282 

140,804 

91,282 

158,188 

91,282 

143,169 

91,282 

143,169 

69,168 

109,968 

18,163 

23,948 

58,757 

378,045 

18,163 

24,441 

867,397 

1,583,470 

1   Graham Kelly resigned as Non-Executive Director on 8 September 2020. 

2  

Ian Dixon was appointed as Non-Executive Director on 8 September 2020. 

3   Rüdiger Weseloh was remunerated $22,268 for services provided outside of his Director role for R&D consulting. The 

fees paid were at market rates. 

4   The value included in the share-based payment options column is calculated using sophisticated financial models. 
The expense is apportioned from the grant date to the date the options vest.  As at the date of this report no KMP 
options have been exercised and this amount does not represent a cash benefit to the KMP.  

26 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report FY21 

Short-term employee benefits 

Post-
employment 
benefits 

Share-
based 
payments 

Salary  
& fees 

Bonus 

Other 

Super-
annuation 

Options3 

Total 

2020 

$ 

$ 

$ 

$ 

$ 

$ 

Non-Executive 
Directors 

John Moore 

Graham Kelly1 

Peter Marks 

Marcus Frampton 

Rüdiger Weseloh 

Christopher Cox2 

Executive 
Employees  

63,340 

266,628 

51,220 

24,519 

20,432 

24,519 

James Bonnar (CEO) 

275,000 

Total 

725,658 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

157,168 

220,508 

21,937 

250,215 

538,780 

- 

- 

- 

- 

138,719 

189,939 

78,584 

103,103 

78,584 

99,016 

78,584 

103,103 

26,125 

1,213 

302,338 

48,062 

783,067 

1,556,787 

1   Graham Kelly was an employee for the period 1 July 2019 to 18 November 2019. On 18 November 2019, Dr. Kelly 

entered into a Consulting Agreement to provide strategic and advisory consulting services for the Company. The 
Consulting Agreement ceased on 31 March 2020 when Dr. Kelly transitioned to a Non-Executive Director. 

2   Christopher Cox was appointed as Director on 7 November 2019. 

3   The value included in the share-based payment options column is calculated using sophisticated financial models. 

The expense is apportioned from the grant date to the date the options vest.  As at the date of this report, no KMP 
options have been exercised and this amount does not represent a cash benefit to the KMP.    

Other transactions with Key Management Personnel and their related parties 

Prue  Kelly,  spouse  of  Graham  Kelly  (Non-Executive  Director)  was  employed  as  the  Company's  part-time 
Executive Assistant and Investor Relations Manager on the Company's employment terms and conditions. 
Refer to note 20 to the financial statements for further details. 

During the year the Company fully settled a $342,322 loan to related party, Noxopharm Ltd. The loan was 
repayable upon the March 2021 Placement. The facility was unsecured with no interest payable. 

27 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NYRADA INC (ASX:NYR)  

Key terms of employment contracts 

James Bonnar 

The Company has entered into an Executive Services Agreement with James Bonnar (Bonnar) (ESA). 

Under the ESA, Bonnar is employed by the Company to provide services to the Company as Chief Executive 
Officer on a full-time basis. The Company will remunerate Bonnar for his services with a base remuneration 
of $301,125 per annum, inclusive of superannuation and subject to annual review by the Company. 

The ESA may be terminated by either the Company or Bonnar for any reason on 6 months’ written notice, 
in which case the Company can elect for Bonnar to serve out all or part of that notice period, and/or to pay 
Bonnar an amount in lieu of continuing his employment during all or part of that notice period. 

The ESA may also be terminated by the Company summarily at any time if Bonnar breaches a material term 
of the ESA, or engages in any act or omission constituting serious misconduct, in which case the Company 
need not make any payment to Bonnar other than accrued entitlements. 

Any discoveries and inventions made or discovered by Bonnar during the term of the ESA which relate to 
the  Company's  business  must  be  disclosed  to  the  Company  and  will  remain  the  sole  property  of  the 
Company. 

James Bonnar is also subject to restrictions in relation to: 

• 

the use of confidential information during and after his employment with the Company; and 

•  being directly or indirectly involved in a competing business during and after his employment with 

the Company, 

on terms which are considered standard for agreements of this nature. 

Otherwise, the ESA is on terms considered standard for agreements of this nature. 

Non-Executive Directors 

The Company has entered into a Director Services Agreement with each Non-Executive Director. The Board 
resolved to increase Non-Executive Director fees effective 1 April 2021. The Directors’ fees currently agreed 
to be payable by the Company under the Director Services Agreements are set out below: 

Name 

John Moore 

Peter Marks 

Rüdiger Weseloh 

Marcus Frampton 

Christopher Cox 

Ian Dixon 

Annual Non-Executive  
Director Fees 

Annual Non-Executive 
Director Fees 

1 July 2020 - 31 March 2021 

Effective 1 April 2021 

US$67,500 

US$25,000 

US$25,000 

US$25,000 

US$25,000 

US$25,000 

US$120,000 

US$50,000 

US$50,000 

US$50,000 

US$50,000 

US$50,000 

Further, if a Director is a member of the Audit & Risk Committee and/or the Remuneration & Nomination 
Committee,  the  Company  has  agreed  to  pay  that  Director  an  additional  US$5,000  per  annum  for  each 
committee  in  respect  of  which  that  Director  is  a  member.  All  Directors’  fees  are  exclusive  of  any 
superannuation that is required by law to be made by the Company. 

On appointment to the board, all Non-Executive Directors are required to sign a letter of appointment with 
the Company. The letter of appointment summarises the Board policies and terms, including compensation 
relevant to the office or director. 

28 

 
  
 
 
Annual Report FY21 

Key Management Personnel equity holdings 

Shares of Nyrada Inc. 

Balance 
at 1 July 

Granted as 

compensation  Additions 

Net other 
change3 

Balance on 
resignation 

Balance at 
30 June 

2021 

No. 

No. 

No. 

No. 

No. 

No. 

Non-Executive 
Directors 

John Moore 

Graham Kelly1 

Peter Marks 

197,500 

616,551 

50,000 

Rüdiger Weseloh 

- 

Marcus Frampton 

110,075 

Christopher Cox 

800,000 

Ian Dixon2 

Executive 
Employees 

- 

James Bonnar 

65,000 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

200,000 

100,000 

135,000 

625,000 

9,921,725 

192,308 

- 

76,923 

160,923 

- 

358,423 

- 

(616,551) 

- 

- 

- 

- 

- 

- 

- 

250,000 

100,000 

245,075 

1,425,000 

10,114,033 

141,923 

1   Graham Kelly resigned as Non-Executive Director on 8 September 2020. 

2  

Ian Dixon was appointed as Non-Executive Director on 8 September 2020. On appointment Ian Dixon held 
9,921,725 shares. 

3   Net other changes relate to participation in Placement and on-market purchases of issued shares / CDIs. 

Balance  
at 1 July 

Additions 

Net other 
change2 

Balance on 
resignation 

Balance  
at 30 June 

2020 

No. 

No. 

No. 

No. 

No. 

Non-Executive  
Directors 

John Moore 

Graham Kelly 

Peter Marks 

Rüdiger Weseloh 

Marcus Frampton 

Christopher Cox1 

Executive  
Employees 

James Bonnar 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

197,500 

616,551 

50,000 

- 

110,075 

800,000 

65,000 

- 

- 

- 

- 

- 

- 

- 

197,500 

616,551 

50,000 

- 

110,075 

800,000 

65,000 

1   Christopher Cox was appointed as Director on 7 November 2019. 

2   Net other changes relate to on-market purchases of issued shares / CDIs. 

29 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
NYRADA INC (ASX:NYR)  

Options of Nyrada Inc. 

2021 

Balance  
at 1 July 

Granted as 
compens-
ation 

Exercised/
Cancelled 

Balance on 
resignation 

Balance  
at 30 June 

Balance 
vested at 
30 June 

Options 
vested 
during 
year 

No. 

No. 

No. 

No. 

No. 

No. 

No. 

Non-Executive 
Directors 

John Moore 

3,600,000 

Graham Kelly 

18,037,293 

Peter Marks 

2,600,000 

Rüdiger Weseloh 

1,800,000 

Marcus Frampton 

1,800,000 

Christopher Cox 

1,800,000 

- 

- 

- 

- 

- 

- 

Ian Dixon 

Executive 
Employee 

- 

1,800,000 

James Bonnar 

600,000 

1,200,000 

- 

- 

- 

- 

- 

- 

- 

- 

- 

3,600,000 

1,200,000 

1,200,000 

(18,037,293) 

- 

- 

- 

- 

- 

- 

- 

- 

2,600,000 

1,400,000 

600,000 

1,800,000 

600,000 

600,000 

1,800,000 

600,000 

600,000 

1,800,000 

600,000 

600,000 

1,800,000 

- 

1,800,000 

- 

- 

- 

- 

2020 

Balance  
at 1 July 

Granted as 
compens-
ation 

Granted  
as C-note 

Exercised/ 
Cancelled 

Balance  
at 30 June 

Balance 
vested at 
30 June 

Options 
vested 
during 
year 

No. 

No. 

No. 

No. 

No. 

No. 

No. 

Non-Executive 
Directors 

John Moore 

- 

3,600,000 

- 

-  3,600,000 

- 

- 

Graham Kelly 

440,000 

18,000,000 

37,293 

(440,000) 

18,037,293  4,000,000  4,000,000 

Peter Marks 

22,000 

2,600,000 

Marcus Frampton  

Rüdiger Weseloh  

Christopher Cox 

Executive 
Employees 

- 

- 

- 

1,800,000 

1,800,000 

1,800,000 

- 

- 

- 

- 

(22,000)  2,600,000 

800,000 

800,000 

- 

- 

- 

1,800,000 

1,800,000 

1,800,000 

- 

- 

- 

- 

- 

- 

- 

- 

James Bonnar 

22,000 

600,000 

- 

(22,000) 

600,000 

End of Remuneration report. 

30 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This  report  is  made  in  accordance  with  a  resolution  of  directors,  pursuant  to  section  298(2)(a)  of  the 
Corporations Act 2001. 

Annual Report FY21 

On behalf of the Directors 

___________________________ 

John Moore 

Non-Executive Chairman 

30 August 2021

31 

AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE 
CORPORATIONS ACT 2001 TO THE DIRECTORS OF NYRADA INC 

I declare that, to the best of my knowledge and belief, during the year ended 30 June 2021 
there have been: 

—  no contraventions of the auditor independence requirements as set out in the 

Corporations Act 2001 in relation to the audit; and 

—  no contraventions of any applicable code of professional conduct in relation to the 

audit. 

William Buck Audit (Vic) Pty Ltd 
ABN: 59 116 151 136 

N.S. Benbow 
Director 

Melbourne, 30 August 2021 

 
 
 
 
 
 
 
 
 
 
 
 
Nyrada Inc  
Independent auditor’s report to members 

Report on the Audit of the Financial Report 

Opinion 
We have audited the financial report of Nyrada Inc (the Company) and its controlled 
entities (together, the Group), which comprises the consolidated statement of financial 
position as at 30 June 2021, the consolidated statement of comprehensive income, the 
consolidated statement of changes in equity and the consolidated statement of cash flows 
for the year then ended, and notes to the financial statements, including a summary of 
significant accounting policies and other explanatory information, 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 2021 and of 

its financial performance for the year ended on that date; and  

(ii)   complying with Australian Accounting Standards and 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 auditor independence requirements of 
the Corporations Act 2001 and the ethical requirements of the Accounting Professional 
and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants 
(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 believe that the audit evidence we have obtained is sufficient and appropriate to 
provide a basis for our opinion. 

Other Matter  
The financial report of Nyrada Inc. for the year ended 30 June 2020 was audited by 
another auditor, who expressed an unmodified opinion to that report. 

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. 

 
 
 
 
 
ACCOUNTING FOR SHARE-BASED PAYMENTS 

Area of focus 

How our audit addressed it 

The Group actively encourages its employees, key 
management personnel and other contracting parties 
to be aligned with overall shareholder value through 
share-based payment arrangements.  

Its share-based payment arrangements in periods 
leading up to and for the year ended 30 June 2021 
took the form of share options and performance 
rights. 

These arrangements have some complexity in their 
calculation, namely around the following: 

—  The determination of their grant date, which sets 

the value of the share-based payment 
arrangement; 

—  Applying a valuation model that is appropriate in 

the context of the vesting terms of the 
arrangement, particularly concerning any market 
and non-market based vesting terms; 

—  Applying inputs into the valuation models, 

particularly concerning the determination of 
expected volatility calculations; and 

—  Assessing the appropriateness of the vesting 

charge of each share-based payment 
arrangement taken to the profit or loss during the 
year. 

This is a key audit matter as vesting charges 
concerning key management personnel remuneration 
are recorded in the Remuneration Report, which 
accompanies these financial statements. 

For new share-based payment 
arrangements in the year we performed the 
following:  

—  Determining the appropriateness of the 
model applied in valuing the share-
based payment arrangement; 

—  Where the arrangement involved a 
market-based vesting hurdle, 
assessing the competence and 
appropriateness of the independent 
expert contracted by the Group to 
value the arrangement; and 

—  Assessing the appropriateness of other 
inputs, including the grant date and 
ensuring the model captured the key 
terms and conditions of the share-
based payment arrangement. For 
volatility inputs, we consulted our 
Corporate Advisory team for their 
assessment of the appropriateness of 
the volatility assumption. 

We also recomputed the vesting charge 
taken to the profit or loss of share-based 
payment arrangements, both those granted 
in the current financial year and for prior 
periods, reconciled to the share-based 
payment reserve, and then traced vesting 
charges of key management personnel 
beneficiaries to Remuneration Report 
disclosures. 

Other Information  
The directors are responsible for the other information. The other information comprises the information in 
the Group’s annual report for the year ended 30 June 2021, but does not include the financial report and 
the auditor’s report thereon. 

 
 
 
 
 
 
 
 
 
 
 
 
  
Our opinion on the financial report does not cover the other information and we do not express any form of 
assurance conclusion thereon. 

In connection with our audit of the financial report, our responsibility is to read the other information and, in 
doing so, consider whether the other information is materially inconsistent with the financial report or our 
knowledge obtained in the audit or otherwise appears to be materially misstated.  
If, based on the work we have performed, we conclude that there is a material misstatement of this other 
information, we are required to report that fact. We have nothing to report in this regard. 

Responsibilities of the Directors for the Financial Report 
The directors of the Company are responsible for the preparation of the financial report that gives a true 
and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for 
such internal control as the directors determine is necessary to enable the preparation of the financial 
report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.  

In preparing the financial report, the directors are responsible for assessing the ability of the Group to 
continue as a going concern, disclosing, as applicable, matters related to going concern and using the 
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease 
operations, or has no realistic alternative but to do so. 

Auditor’s Responsibilities for the Audit of the Financial Report  
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free 
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our 
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted 
in accordance with the Australian Auditing Standards will always detect a material misstatement when it 
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the 
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the 
basis of this financial report. 

A further description of our responsibilities for the audit of these financial statements is located at the 
Auditing and Assurance Standards Board website at: 

http://www.auasb.gov.au/auditors_responsibilities/ar1.pdf  

This description forms part of our independent auditor’s report. 

Report on the Remuneration Report 

Opinion on the Remuneration Report  
We have audited the Remuneration Report included in the directors’ report for the year ended 30 June 
2021. 

In our opinion, the Remuneration Report of Nyrada Inc for the year ended 30 June 2021 complies with 
section 300A of the Corporations Act 2001. 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Responsibilities 
The directors of the Company are responsible for the preparation and presentation of the Remuneration 
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an 
opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing 
Standards. 

William Buck Audit (Vic) Pty Ltd 
ABN: 59 116 151 136 

N.S. Benbow 
Director 

Melbourne, 30 August 2021 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report FY21 

Consolidated Statement of Profit or Loss 
and Other Comprehensive Income 

For the year ended 30 June 2021 

Revenue 

Other income 

R&D grant revenue 

Total revenue 

Expenses 

Notes 

5 

6 

2021 

$ 

2020 

$ 

53,989  

50,000  

2,286,022  

1,075,414  

2,340,011  

1,125,414  

Employee benefits expense – share-based payments 

(1,111,622) 

(2,204,324) 

Professional services expenses 

Travelling expenses 

Employee benefits expense 

Depreciation and amortisation expense 

Research and development costs 

Other expenses 

Finance costs 

(509,842) 

(1,005,316) 

-   

(13,361) 

(929,931) 

(1,342,993) 

(1,811) 

(1,484) 

(2,175,050) 

(1,399,999) 

(249,564) 

(219,387) 

(5,605) 

(140,355) 

Corporate and administration expenses 

(895,839) 

(571,862) 

Total expenses 

Loss before income tax expense 

(5,879,264) 

(6,899,081) 

(3,539,253) 

(5,773,667) 

Income tax expense 

12 

-   

-   

Loss after income tax expense for the year 
attributable to the owners of Nyrada Inc. 

(3,539,253) 

(5,773,667) 

Other comprehensive income for the year, net of tax 

-   

-   

Total comprehensive income for the year attributable 
to the owners of Nyrada Inc. 

(3,539,253) 

(5,773,667) 

Basic loss per share: 

Diluted loss per share: 

18 

18 

$ 

(0.03) 

(0.03) 

$ 

(0.09) 

(0.09) 

The  above  consolidated  statement  of  profit  or  loss  and  other  comprehensive  income  should  be  read  in 
conjunction with the accompanying notes. 

37 

 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NYRADA INC (ASX:NYR)  

Consolidated Statement of Financial Position 

As at 30 June 2021 

Assets 

Current assets 

Notes 

2021 

$ 

2020 

$ 

Cash and cash equivalents 

13,750,743  

5,146,169  

Trade, other receivables and prepayments 

7 

1,360,821  

1,078,845  

Total current assets 

15,111,564  

6,225,014  

Non-current assets 

Plant and equipment 

Intangibles 

Total non-current assets 

Total assets 

Liabilities 

Current liabilities 

Trade and other payables 

Employee benefits 

Total current liabilities 

Total liabilities 

Net assets 

Equity 

Issued capital 

Reserves 

Accumulated losses 

Total equity 

8,443  

5,254  

37,000  

37,000  

45,443  

42,254  

15,157,007  

6,267,268  

8 

588,029  

696,883  

77,352  

43,785  

665,381  

740,668  

665,381  

740,668  

14,491,626  

5,526,600  

9 

10 

25,320,332  

15,607,349  

4,726,913  

2,204,324  

(15,555,619) 

(12,285,073) 

14,491,626  

5,526,600  

The  above  consolidated  statement  of  financial  position  should  be  read  in  conjunction  with  the 
accompanying notes. 

38 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
Annual Report FY21 

Consolidated Statement of Changes in Equity 

For the Year Ended 30 June 2021 

Issued 
capital  Reserves 

Accumulated 
losses 

Total 
equity 

$ 

$ 

$ 

$ 

Balance at 1 July 2019 

37,003 

1,519,937 

(6,511,406)  (4,954,466) 

Loss after income tax expense for the year 

Other comprehensive income for the year, net of tax 

Total comprehensive income for the year 

Transactions with owners in their capacity as 
owners: 

- 

- 

- 

Issue of Common Stock  

11,400,000 

- 

- 

- 

- 

Conversion of convertible note to Common Stock 

4,317,750 

(762,045) 

Share issue costs 

(905,296) 

- 

Recognition of share-based payments 

- 

2,204,324 

Transfer vested option reserve  

757,892 

(757,892) 

(5,773,667) 

(5,773,667) 

- 

- 

(5,773,667)  (5,773,667) 

- 

- 

- 

- 

- 

11,400,000 

3,555,705 

(905,296) 

2,204,324 

- 

Balance at 30 June 2020 

15,607,349  2,204,324 

(12,285,073)  5,526,600 

Balance at 1 July 2020 

15,607,349  2,204,324 

(12,285,073)  5,526,600 

Loss after income tax expense for the year 

Other comprehensive income for the year, net of tax 

Total comprehensive income for the year 

Transactions with owners in their capacity as 
owners: 

- 

- 

- 

Issue of Common Stock 

Issuance of Common Stock - Advisors 

Share issue costs 

11,870,579 

304,615 

(782,537) 

- 

- 

- 

- 

- 

- 

Share-based payments - Broker options 

(1,214,494) 

1,214,494 

Share-based payments - reclassification in  
share capital 

(648,332) 

648,332 

Share-based payments - exercise of options 

183,152 

(183,152) 

(3,539,253) 

(3,539,253) 

- 

- 

(3,539,253)  (3,539,253) 

- 

- 

- 

- 

- 

- 

11,870,579 

304,615 

(782,537) 

- 

- 

- 

- 

Share-based payments - lapse of options 

Share-based payments – vesting  

- 

- 

(268,707) 

268,707 

1,111,622 

- 

1,111,622 

Balance at 30 June 2021 

25,320,332  4,726,913 

(15,555,619)  14,491,626 

The  above  consolidated  statement  of  changes  in  equity  should  be  read  in  conjunction  with  the 
accompanying notes. 

39 

 
 
 
 
 
 
 
 
 
 
 
 
NYRADA INC (ASX:NYR)  

Consolidated Statement of Cash Flows 

For the year ended 30 June 2021 

Notes 

2021 

$ 

2020 

$ 

Cash flows from operating activities 

Payments to suppliers and employees (inclusive of GST) 

(4,878,622) 

(4,460,623) 

R & D tax incentive received 

Interest received 

2,051,785  

3,989  

-   

-   

Cash receipts from other operating activities 

5 

50,000  

50,000  

Net cash used in operating activities 

(2,772,848) 

(4,410,623) 

Cash flows from investing activities 

Payments for plant and equipment 

Net cash used in investing activities 

Cash flows from financing activities 

Proceeds from related party loans 

Repayment of related party loans 

Proceeds from issue of Common Stock 

Payments to convertible note holders 

Proceeds from other financing activities 

(5,000) 

(5,000) 

(2,999) 

(2,999) 

-   

1,204,378  

(342,322) 

-   

11,870,579  

8,700,000  

-   

(515,000) 

44,521  

-   

Transaction costs relating to issue of Common Stock 

(234,286) 

(905,296) 

Net cash from financing activities 

11,338,492  

8,484,082  

Net increase in cash and cash equivalents 

8,560,644  

4,070,460  

Cash and cash equivalents at the beginning of the financial year 

5,146,169  

1,102,397  

Effects of exchange rate changes on cash and cash equivalents 

43,930  

(26,688) 

Cash and cash equivalents at the end of the financial year 

13,750,743  

5,146,169  

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes. 

40 

 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
Notes to the Consolidated Financial Statements 

Annual Report FY21 

1. General information 

The financial statements cover Nyrada Inc (the "Company"), as a Consolidated Entity consisting of Nyrada 
Inc. and the entities it controlled at the end of, or during, the year (the "Consolidated Entity"). The financial 
statements are presented in Australian dollars, which is Nyrada Inc.'s functional and presentation currency.  

Nyrada  Inc  is  a  company  incorporated  in  the  State  of  Delaware  in  the  United  States  and  registered  in 
Australia  as  a  foreign  company.  As  a  foreign  company  registered  in  Australia,  Nyrada  Inc  is  subject  to 
different reporting and regulatory regimes than Australian public companies. 

A description of the nature of the Consolidated Entity's operations and its principal activities are included in 
the Directors' report, which is not part of the financial statements.  

The financial statements were authorised for issue, in accordance with a resolution of directors, on 27 August 
2021. 

2. Significant accounting policies 

The principal accounting policies adopted in the preparation of the financial statements are set out below. 
These policies have been consistently applied to all the years presented, unless otherwise stated. 

New or amended Accounting Standards and Interpretations adopted 

The Consolidated Entity has adopted all of the new or amended Accounting Standards and Interpretations 
issued  by  the  Australian  Accounting  Standards  Board  ('AASB')  that  are  mandatory  for  the  current 
reporting period. 

Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been 
early adopted. 

Basis of preparation 

These general purpose financial statements have been prepared in accordance with Australian Accounting 
Standards  and  Interpretations  issued  by  the  Australian  Accounting  Standards  Board  ('AASB')  and  the 
Corporations Act 2001, as appropriate for for-profit oriented entities. These financial statements also comply 
with  International  Financial  Reporting  Standards  as  issued  by  the  International  Accounting  Standards 
Board ('IASB'). 

Critical accounting estimates 

The preparation of the financial statements requires the use of certain critical accounting estimates. It also 
requires  management  to  exercise  its  judgement  in  the  process  of  applying  the  Consolidated  Entity's 
accounting  policies.  The  areas  involving  a  higher  degree  of  judgement  or  complexity,  or  areas  where 
assumptions and estimates are significant to the financial statements, are disclosed in note 3. 

Parent entity information 

In  accordance  with  the  Corporations  Act  2001,  these  financial  statements  present  the  results  of  the 
Consolidated Entity only. Supplementary information about the Parent entity is disclosed in note 13. 

Principles of consolidation 

The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Nyrada Inc. 
(‘Company' or 'Parent entity') as at 30 June 2021 and the results of all subsidiaries for the year then ended. 
Nyrada Inc. and its subsidiaries together are referred to in these financial statements as the 'Consolidated 
Entity'. 

Subsidiaries are all those entities over which the Consolidated Entity has control. The Consolidated Entity 
controls  an  entity  when  the  Consolidated  Entity  is  exposed  to,  or  has  rights  to,  variable  returns  from  its 
involvement  with  the  entity  and  has  the  ability  to  affect  those  returns  through  its  power  to  direct  the 
activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the 
Consolidated Entity. They are de-consolidated from the date that control ceases.  

41 

NYRADA INC (ASX:NYR)  

2. Significant accounting policies (continued) 

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. A change in 
ownership  interest,  without  the  loss  of  control,  is  accounted  for  as  an  equity  transaction,  where  the 
difference  between  the  consideration  transferred  and  the  book value  of  the  share  of  the  non-controlling 
interest acquired is recognised directly in equity attributable to the parent. 

Where the Consolidated Entity loses control over a subsidiary, it derecognises the assets including goodwill, 
liabilities and non-controlling interest in the subsidiary together with any cumulative translation differences 
recognised in equity. The Consolidated Entity recognises the fair value of the consideration received and the 
fair value of any investment retained, together with any gain or loss in profit or loss. 

Revenue recognition 

The Consolidated Entity recognises revenue as follows: 

Interest 

Interest revenue is recognised as interest accrues using the effective interest method. This is a method of 
calculating the amortised cost of a financial asset and allocating the interest income over the relevant period 
using  the  effective  interest  rate,  which  is  the  rate  that  exactly  discounts  estimated  future  cash  receipts 
through the expected life of the financial asset to the net carrying amount of the financial asset. 

Government Grants 

In the financial year ending 30 June 2021, the Consolidated Entity has accounted for the prior year R&D Tax 
Incentive received and current year accrued. In the 2020FY the Consolidated Entity reported the 2019FY R&D 
Tax Incentive refund only. 

Government research and development tax incentives 

Government grants, including research and development incentives are recognised at fair value when there 
is reasonable assurance that the grant will be received and all grant conditions will be met. 

Income tax 

The income tax expense or benefit for the period is the tax payable on that period's taxable income based 
on the applicable income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and 
liabilities attributable to temporary differences, unused tax losses and the adjustment recognised for prior 
periods, where applicable. 

Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be 
applied when the assets are recovered or liabilities are settled, based on those tax rates that are enacted or 
substantively enacted, except for: 

•  When the deferred income tax asset or liability arises from the initial recognition of goodwill or an 
asset  or  liability  in  a  transaction  that  is  not  a  business  combination  and  that,  at  the  time  of  the 
transaction, affects neither the accounting nor taxable profits; or 

•  When the taxable temporary difference is associated with interests in subsidiaries, associates or joint 
ventures,  and  the  timing  of  the  reversal  can  be  controlled  and  it  is  probable  that  the  temporary 
difference will not reverse in the foreseeable future. 

Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is 
probable that future taxable amounts will be available to utilise those temporary differences and losses. 

The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting 
date.  Deferred  tax  assets  recognised  are  reduced  to  the  extent  that  it  is  no  longer  probable  that  future 
taxable profits will be available for the carrying amount to be recovered. Previously unrecognised deferred 
tax assets are recognised to the extent that it is probable that there are future taxable profits available to 
recover the asset. 

Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current 
tax assets against current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate 
to the same taxable authority on either the same taxable entity or different taxable entities which intend to 
settle simultaneously. 

42 

Annual Report FY21 

2. Significant accounting policies (continued) 

Current and non-current classification 

Assets and liabilities are presented in the statement of financial position based on current and non-current 
classification. 

An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed 
in  the  Consolidated  Entity's  normal  operating  cycle;  it  is  held  primarily  for  the  purpose  of  trading;  it  is 
expected to be realised within 12 months after the reporting period; or the asset is cash or cash equivalent 
unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting 
period. All other assets are classified as non-current. 

A liability is classified as current when: it is either expected to be settled in the Consolidated Entity's normal 
operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after 
the reporting period; or there is no unconditional right to defer the settlement of the liability for at least 12 
months after the reporting period. All other liabilities are classified as non-current. 

Cash and cash equivalents 

Cash  and  cash  equivalents  includes  cash  on  hand,  deposits  held  at  call  with  financial  institutions,  other 
short-term,  highly  liquid  investments  with  original  maturities  of  three  months  or  less  that  are  readily 
convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. 

Trade and other receivables 

Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using 
the effective interest method, less any allowance for expected credit losses. Trade receivables are generally 
due for settlement within 30 days. 

The  Consolidated  Entity  has  applied  the  simplified  approach  to  measuring  expected  credit  losses,  which 
uses a lifetime expected loss allowance. To measure the expected credit losses, trade receivables have been 
grouped based on days overdue. 

Other receivables are recognised at amortised cost, less any allowance for expected credit losses. 

Investments and other financial assets 

Investments and other financial assets are initially measured at fair value. Transaction costs are included as 
part of the initial measurement, except for financial assets at fair value through profit or loss. Such assets are 
subsequently measured at either amortised cost or fair value depending on their classification. Classification 
is  determined  based  on  both  the  business model  within  which  such  assets  are  held  and  the  contractual 
cash flow characteristics of the financial asset unless an accounting mismatch is being avoided. 

Financial  assets  are  derecognised  when  the  rights  to  receive  cash  flows  have  expired  or  have  been 
transferred and the Consolidated Entity has transferred substantially all the risks and rewards of ownership. 
When there is no reasonable expectation of recovering part or all of a financial asset, its carrying value is 
written off. 

Loans and receivables  

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not 
quoted in an active market. They are carried at amortised cost using the effective interest rate method. Gains 
and losses are recognised in profit or loss when the asset is derecognised or impaired.  

43 

 
 
NYRADA INC (ASX:NYR)  

2. Significant accounting policies (continued) 

Impairment of financial assets  

The Consolidated Entity recognises a loss allowance for expected credit losses on financial assets which are 
either measured at amortised cost or fair value through other comprehensive income. The measurement of 
the loss allowance depends upon the Consolidated Entity's assessment at the end of each reporting period 
as to whether the financial instrument's credit risk has increased significantly since initial recognition, based 
on reasonable and supportable information that is available without undue cost or effort to obtain.  

Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month 
expected credit loss allowance is estimated. This represents a portion of the asset's lifetime expected credit 
losses that is attributable  to a default event that is possible within the next 12 months. Where a financial 
asset has become credit impaired or where it is determined that credit risk has increased significantly, the 
loss allowance is based on the asset's lifetime expected credit losses. The amount of expected credit loss 
recognised is measured on the basis of the probability weighted present value of anticipated cash shortfalls 
over the life of the instrument discounted at the original effective interest rate.  

For  financial  assets  measured  at  fair  value  through  other  comprehensive  income,  the  loss  allowance  is 
recognised within other comprehensive income. In all other cases, the loss allowance is recognised in profit 
or loss.  

Property, plant and equipment 

Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical 
cost includes expenditure that is directly attributable to the acquisition of the items. 

Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and 
equipment (excluding land) over their expected useful lives as follows: 

Plant and equipment 

3-7 years 

Trade and other payables 

These amounts represent liabilities for goods and services provided to the Consolidated Entity prior to the 
end  of  the  financial  year  and  which  are  unpaid.  Due  to  their  short-term  nature  they  are  measured  at 
amortised cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of 
recognition. 

Research and development expenditure 

Research costs are expensed in the period in which they are incurred. Development costs are capitalised 
when it is probable that the project will be a success considering its commercial and technical feasibility; 
the Consolidated Entity is able to use or sell the asset; the Consolidated Entity has sufficient resources and 
intent to complete the development; and its costs can be measured reliably. Capitalised development costs 
are amortised on a straight-line basis over the period of their expected benefit. 

Finance costs 

Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs are 
expensed in the period in which they are incurred. 

Employee benefits 

Short-term employee benefits 

Liabilities  for  wages  and  salaries,  including  non-monetary  benefits,  annual  leave  and  long  service  leave 
expected to be settled wholly within 12 months of the reporting date are measured at the amounts expected 
to be paid when the liabilities are settled. 

44 

 
 
 
 
Annual Report FY21 

2. Significant accounting policies (continued) 

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. 

The Consolidated Entity assesses non market performance conditions. As at 30 June 2021, the Consolidated 
Entity assumes Key Management Personnel non-market performance conditions will be achieved. 

If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not 
been made. An additional expense is recognised, over the remaining vesting period, for any modification 
that increases the total fair value of the share-based compensation benefit as at the date of modification. 

If the non-vesting condition is within the control of the Consolidated Entity or employee, the failure to satisfy 
the condition is treated as a cancellation. If the condition is not within the control of the Consolidated Entity 
or  employee  and  is  not  satisfied  during  the  vesting  period,  any  remaining  expense  for  the  award  is 
recognised over the remaining vesting period, unless the award is forfeited. 

If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any 
remaining expense is recognised immediately. If a new replacement award is substituted for the cancelled 
award, the cancelled and new award is treated as if they were a modification. 

Fair value measurement 

When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure 
purposes, the fair value is based on the price that would be received to sell an asset or paid to transfer a 
liability in an orderly transaction between market participants at the measurement date; and assumes that 
the transaction will take place either: in the principal market; or in the absence of a principal market, in the 
most advantageous market. 

Fair value is measured using the assumptions that market participants would use when pricing the asset or 
liability,  assuming  they  act  in  their  economic  best  interests.  For  non-financial  assets,  the  fair  value 
measurement  is  based  on  its  highest  and  best  use.  Valuation  techniques  that  are  appropriate  in  the 
circumstances and for which sufficient data is available to measure fair value, are used, maximising the use 
of relevant observable inputs, and minimising the use of unobservable inputs. 

45 

 
 
NYRADA INC (ASX:NYR)  

2. Significant accounting policies (continued) 

Issued capital 

Ordinary shares are classified as equity. 

Incremental  costs  directly  attributable  to  the  issue  of  new  shares  or  options  are  shown  in  equity  as  a 
deduction, net of tax, from the proceeds. 

Goods and Services Tax ('GST') and other similar taxes 

Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred 
is not recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of 
the asset or as part of the expense. 

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount 
of GST recoverable from, or payable to, the tax authority is included in other receivables or other payables in 
the statement of financial position. 

Cash  flows  are  presented  on  a  gross  basis.  The  GST  components  of  cash  flows  arising  from  investing  or 
financing activities which are recoverable from, or payable to the tax authority, are presented as operating 
cash flows. 

Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, 
the tax authority. 

Conceptual Framework for Financial Reporting (Conceptual Framework) 

The revised Conceptual Framework is applicable to annual reporting periods beginning on or after 1 January 
2020. The Conceptual Framework contains new definition and recognition criteria as well as new guidance 
on measurement that affects several Accounting Standards. Where the Consolidated Entity has relied on 
the existing framework in determining its accounting policies for transactions, events or conditions that are 
not  otherwise  dealt  with  under  the  Australian  Accounting  Standards,  the  Consolidated  Entity  may  have 
needed to review such policies under the revised framework. At this time, the application of the Conceptual 
Framework did not have a material impact on the Consolidated Entity's financial statements. 

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. 

There is no significant impact of the new standards on the Consolidated Entity expected from the adoption 
of this standard. 

46 

 
 
Annual Report FY21 

3. Critical accounting judgements, estimates and assumptions 

The  preparation  of  the  financial  statements  requires  management  to  make  judgements,  estimates  and 
assumptions  that  affect  the  reported  amounts  in  the  financial  statements.  Management  continually 
evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and 
expenses. Management bases its judgements, estimates and assumptions on historical experience and on 
other various factors, including expectations of future events, management believes to be reasonable under 
the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual 
results.  The  judgements,  estimates  and  assumptions  that  have  a  significant  risk  of  causing  a  material 
adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next 
financial year are discussed below. 

Coronavirus (COVID-19) pandemic 

Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has 
had, or may have, on the Consolidated Entity based on known information. This consideration extends to 
the nature of the supply chain, staffing and geographic regions in which the Consolidated Entity operates. 
Other than as addressed in specific notes, there does not currently appear to be either any significant impact 
upon the financial statements, or any significant uncertainties with respect to events or conditions which 
may impact the Consolidated Entity unfavourably as at the reporting date or subsequently as a result of the 
Coronavirus (COVID-19) pandemic. 

Share-based payment transactions 

The Consolidated Entity measures the cost of equity-settled transactions with employees by reference to 
the fair value of the equity instruments at the date at which they are granted. The fair value is determined 
by using either the Binomial or Black-Scholes model taking into account the terms and conditions upon 
which the instruments were granted. The accounting estimates and assumptions relating to equity-settled 
share-based payments would have no impact on the carrying amounts of assets and liabilities within the 
next annual reporting period but may impact profit or loss and equity. 

Recovery of deferred tax assets 

Deferred  tax  assets  are  recognised  for  deductible  temporary  differences  only  if  the  Consolidated  Entity 
considers it is probable that future taxable amounts will be available to utilise those temporary differences 
and losses. 

Assessment of R&D expenditure not advancing to a stage of technical feasibility 

Research costs are expensed in the period in which they are incurred. Development costs are capitalised 
when it is probable that the project will be a success considering its commercial and technical feasibility; 
the Consolidated Entity is able to use or sell the asset; the Consolidated Entity has sufficient resources and 
intent to complete the development; and its costs can be measured reliably. 

4. Operating segments 

From the period beginning 1 July 2019, the Board considers that the Consolidated Entity has only operated 
in  one  Segment,  being  research  and  development  of  drugs  focusing  on  small  molecules  with  potential 
therapeutic benefit  in areas of significant medical needs, and it operates in one geographical area being 
Australasia. The financial information presented in the statement of financial performance and statement 
of financial position represents the information for the business segment. 

47 

 
NYRADA INC (ASX:NYR)  

5. Other income 

Interest received 

Grant income 

Other income 

6. R&D grant revenue 

2021 

$ 

3,989  

50,000  

53,989  

2020 

$ 

-   

50,000  

50,000  

2021 

$ 

2020 

$ 

R&D grant revenue 

2,286,022  

1,075,414  

R&D  grant  revenue  recorded  in  2021  relates  to  the  FY2020  refund  received  of  $976,372  and  the  accrued 
FY2021 refund of $1,309,650 (2020: $1,075,414 recognised relating to FY2019 refund). 

7. Trade, other receivables and prepayments 

Current assets 

R&D Tax Incentive Receivable  

1,309,650  

1,075,414  

2021 

$ 

2020 

$ 

Prepayments  

Other receivables 

8. Trade and other payables 

Current liabilities 

Trade payables 

Amount owing to related party - Noxopharm Limited 

Accrued expenses 

Other payables 

1,688  

49,483  

3,431  

-   

1,360,821  

1,078,845  

2021 

$ 

87,195  

-   

433,428  

67,406  

588,029  

2020 

$ 

209,639  

342,322  

138,534  

6,388  

696,883  

The $342,322 Noxopharm Loan was unsecured and no interest was payable. The loan was settled in full post 
the March 2021 Placement. 

48 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report FY21 

9. Issued capital 

Ordinary shares - fully paid 

156,008,700 

109,383,722 

25,320,332  

15,607,349 

2021 

2020 

Shares 

Shares 

2021 

$ 

2020 

$ 

Common Stock 

At the beginning of reporting 
period/year 

Adjustment as a result of 
stock splits 

Transfer from Option Reserve 

Issuance of Common Stock upon 
conversion of the Convertible Notes 

Issuance of Common Stock upon 
conversion of Noxopharm Loan 

30 June 2021 

30 June 2020 

30 June 2021  30 June 2020 

Shares 

Shares 

$ 

$ 

109,383,722 

10,000 

15,607,349 

37,003 

- 

- 

- 

- 

29,784,970 

- 

21,588,752 

13,500,000 

- 

- 

- 

- 

- 

757,892 

4,317,750 

2,700,000 

Issue of Common Stock 

44,231,154 

44,500,000 

11,500,899 

8,700,000 

Issue of Common Stock upon 
exercising of options 

Issuance of Common Stock - 
Advisors 

Share-based payments - 
exercise of options 

Less: Share placement costs 

Less: Share-based payments - 
Broker options 

Less: Share-based payments - 
reclassification in share capital 

At the end of reporting 
period/year 

1,441,901 

951,923 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

369,680 

304,615 

183,152 

- 

- 

- 

(782,537) 

(905,296) 

(1,214,494) 

(648,332) 

- 

- 

156,008,700 

109,383,722 

25,320,332 

15,607,349 

The Company has CHESS Depositary Interests (CDIs) quoted on the Australian Securities Exchange (ASX) 
trading under the ASX code NYR. Each CDI represents an interest in one share of Class A Common Stock of 
the Company (Share). 

Legal title to the Shares underlying the CDIs is held by CHESS Depositary Nominees Pty Ltd (CDN), a wholly 
owned subsidiary of the ASX. The Company’s securities are not quoted on any other exchange. 

CDI Holders are entitled to participate in dividends and the proceeds on the winding up of the Company in 
proportion to the number of and amounts paid on the shares held.  

CDI Holders may attend and vote at Nyrada’s general meetings. The Company must allow CDI Holders to 
attend any meeting of Shareholders unless relevant U.S. law at the time of the meeting prevents CDI Holders 
from attending those meetings. 

49 

 
 
 
 
 
 
NYRADA INC (ASX:NYR)  

9. Issued capital (continued) 

Options on issue  

The following share-based payment arrangements were issued in the current reporting period: 

No. of 
options. 

Grant date 

Expiry date 

Grant date 
fair value 

Vesting 
date/ 
Expected 
Vesting 
Date 

600,000 

18/01/2021 

18/01/2024 

$0.1054  

18/01/2022 

600,000 

18/01/2021 

18/01/2025 

$0.1166  

18/01/2023 

600,000 

18/01/2021 

18/01/2026 

$0.1260  

18/01/2024 

1,200,000 

24/02/2021 

3 years from vesting 

$0.1667  

24/02/2021 

Exercise 
Price 

TBC1 

TBC1 

TBC1 

TBC2 

4,000,000 

29/06/2021 

29/06/2026 

$0.1703  

29/06/2021 

$0.40 

2,000,000 

29/06/2021 

29/06/2026 

$0.1457  

29/06/2021 

$0.60 

2,000,000 

29/06/2021 

29/06/2026 

$0.1210  

29/06/2021 

$0.90 

1.  The exercise price is the higher of 

• 

• 

• 

100% of the Fair Market Value (as defined in the Company’s Stock Incentive Plan) of the Shares on the date 
that Option is granted; and 

an amount equal to 120% of the volume weighted average price of the CDIs for the period of 10 trading days 
immediately prior to the date on which that Option vests. 

An exercise price of $0.23 was used for the purpose of the fair value calculation at grant date. 

2.  The exercise price is the higher of 

• 

• 

100% of the Fair Market Value (as defined in the Company’s Stock Incentive Plan) of the Shares on the date 
that Option is granted; and 

an amount equal to 120% of the volume weighted average price of the CDIs for the period of 10 trading days 
immediately prior to the date on which that Option vests. 

An exercise price of $0.33 was used for the purpose of the fair value calculation at grant date. 

• 

As at 30 June, the known range of exercise price of options is between $0.20 and $0.90 and of nil for 
performance common stock (refer note c). The weighted average remaining contractual life of options and 
performance common stock is 1,361 days. 

50 

 
Annual Report FY21 

9. Issued capital (continued)

c) Performance Common Stock

The Company has issued the following Performance Common Stock in the Company (Performance Shares):

At the beginning of the reporting period 

18,000,000 

Issued to Noxopharm Limited 

Issued to Altnia Holdings Pty Ltd 

-

-

2021 

No. 

2020 

No. 

- 

12,000,600

5,999,400

At the end of the reporting period 

18,000,000 

18,000,000 

The  Performance  Shares  shall  be  convertible  into  18,000,000  Shares  upon  the  achievement  of  the 
milestones referred to below on or before 25 November 2024. The fair value of each Performance Share at 
grant date is $0.08: 

Holder 

Performance shares  Performance milestones 

Noxopharm 
Limited 

6,000,300 

The later to occur of: 

•

•

the trading price for the Company’s CDIs achieving
at least AU$0.40 for 5 consecutive trading days on
the ASX; and

the Scientific Advisory Board to the Company
determining that, based on in-vivo data, the final lead
neuroprotectant drug candidate is ready to proceed
to pre-clinical safety and toxicology studies.

6,000,300 

The later to occur of: 

•

•

the trading price for the Company’s CDIs achieving
at least AU$0.40 for 5 consecutive trading days on
the ASX; and

the Scientific Advisory Board to the Company
determining that, based on in-vivo data, the final lead
peripheral neuropathic pain drug candidate is ready
to proceed to pre-clinical safety and toxicology
studies.

Altnia Holdings 
Pty Ltd 

5,999,400 

The later to occur of: 

•

•

the trading price for the Company’s CDIs achieving
at least AU$0.40 for 5 consecutive trading days on
the ASX; and

the Scientific Advisory Board to the Company
determining that, based on in-vivo data, the final lead
PCSK9 inhibitor drug candidate is ready to proceed
to pre-clinical safety and toxicology studies.

Total 

18,000,000 

If the relevant performance milestones are not achieved on or before 25 November 2024, the Performance 
Shares held by each holder will be automatically redeemed by the Company for the sum of AU$1.00. 

Each Performance Share shall be convertible into one (1) fully paid and non-assessable Share upon the terms 
and  conditions  set  forth  herein.  The  Company  will  at  all  times  reserve  and  keep  available,  solely  for  the 
purpose of issue upon conversion of the outstanding Performance Shares, such number of Shares as shall 
be  issuable upon  the  conversion  of  all  such  outstanding  shares;  provided,  that  nothing  contained  herein 
shall be construed to preclude the Company from satisfying its obligations in respect of the conversion of 
the outstanding Performance Shares by delivery of Shares which are held in the treasury of the Company. 

51 

NYRADA INC (ASX:NYR)  

9. Issued capital (continued) 

The Company covenants that if any shares, required to be reserved for purposes of conversion hereunder, 
require registration with or approval of any governmental authority under any federal or state law before 
such shares may be issued upon conversion, the Company will use its best efforts to cause such shares to 
be duly registered or approved, as the case may be. The Company will endeavour to list the shares required 
to be delivered upon conversion prior to such delivery upon each national securities exchange, if any, upon 
which the outstanding shares are listed at the time of such delivery. The Company covenants that all Shares 
which shall be issued upon conversion of the Performance shares will, upon issue, be fully paid and non-
assessable and not entitled to any pre-emptive rights. 

Fifty Percent (50%) of the Nox Performance Common Stock will automatically convert into Shares upon 10 
Business Days after the First Milestone and the Second Nox Milestone are both satisfied, such that each such 
share of Nox Performance Common Stock will convert into one Share. 

Fifty Percent (50%) of the Nox Performance Common Stock will automatically convert into Shares upon 10 
Business Days after the First Milestone and the Third Nox Milestone are both satisfied, such that each such 
share of Nox Performance Common Stock will convert into one Share. 

The Altnia Performance Common Stock will automatically convert into Shares upon 10 Business Days after 
the First Milestone and the Second Altnia Milestone are both satisfied, such that each such share of Altnia 
Performance Common Stock will convert into one Share. Altina is a related party of Ian Dixon. 

Upon the occurrence of a Change of Control: 

• 

• 

• 

that number of Performance Shares that, after conversion, is no more than 10% of the issued and 
outstanding  capital  stock  of  the  Company  (as  at  the  date  of  the  Change  of  Control)  may  by  the 
Holder be converted into Shares; 

the Company shall ensure a pro-rata allocation of shares of Shares issued under this paragraph to 
all Holders; and 

any  Performance  Shares  that  are  not  converted  into  Shares  in  accordance  with  this  Section  will 
continue to be held by the Holder on the same terms and conditions. 

Procedures for Conversion 

The Company will issue the Holders with a new holding statement for the Shares within 2 Business Days 
following the conversion of the Performance Shares into Shares. 

Restrictions on Transfer 

The Performance Shares shall be issued only to, and shall be held only by those persons designated by the 
Board. Any purported sale, transfer, pledge or other disposition of any Performance Shares to any person, 
other than a successor to such designated person by merger or reorganisation of the designated person, or 
a duly authorised agent acting for the benefit of such designated person, shall be null and void and of no 
force and effect. 

No Dividends or Distributions 

Holders shall not be entitled to share in any dividends or other distributions of cash, property or shares of 
the Company, whether in the event of any voluntary or involuntary liquidation, dissolution or winding up of 
the Company or otherwise. 

No Pre-emptive Rights 

No Holder shall be entitled as of right to purchase or subscribe for any part of any unissued or treasury stock 
of  the  Company,  or  of  any  additional  stock  of  any  class,  to  be  issued  by  reason  of  any  increase  of  the 
authorized capital stock of the Company, or to be issued from any unissued or additionally authorized stock, 
or  of  bonds,  certificates  of  indebtedness,  debentures  or  other  securities  convertible  into  stock  of  the 
Company, but any such unissued or treasury stock, or any such additional authorized issue of new stock or 
securities  convertible  into  stock,  may  be  issued  and  disposed  of  by  the  Board  to  such  persons,  firms, 
corporations or associations, and upon such terms as the Board may, in its discretion, determine, without 
offering to the Holders then of record, on the same terms or any terms. 

52 

 
Annual Report FY21 

9. Issued capital (continued) 

Reorganisation 

If and for the period that the Company is admitted to the official list of ASX: 

• 

If  there  shall  occur  a  reorganisation,  recapitalisation,  reclassification,  consolidation  or  merger 
involving  the  Company  (Reorganisation),  then  the  rights  of  the  Holder  (including  the  number  of 
Shares into which a Performance Share may be converted) will be changed to the extent necessary 
to comply with the listing rules of ASX applying to a reorganisation of capital stock at the time of the 
Reorganisation. 

•  Any calculations or adjustments which are required to be made will be made by the Board and will, 
in  the  absence  of  manifest  error,  be  final  and  conclusive  and  binding  on  the  Company  and  the 
Holder. 

• 

The  Company  must,  within  a  reasonable  period,  give  to  the  Holder  notice  of  any  change  to  the 
number of Shares into which a Performance Share held by the Holder may be converted. 

Redemption 

If the Performance Shares have not been converted into Shares within five (5) years after the date of issue of 
the Performance Shares, then the Performance Shares held by a Holder at that date will be automatically 
redeemed by the Company for the sum of AUD1.00 within ten (10) Business Days of the expiration of that 
five (5) year period. 

10. Reserves 

Share-based payments reserve 

4,726,913  

2,204,324  

2021 

$ 

2020 

$ 

Share-based payments reserve 

The reserve is used to recognise the value of equity benefits provided to employees and directors as part of 
their remuneration, and other parties as part of their compensation for services.  

11. Dividends 

There were no dividends paid, recommended or declared during the current or previous financial year. 

12. Income tax benefit 

The Company has income tax revenue losses of approximately $5,708,177 for which no deferred tax asset 
has been recognised. 

53 

 
 
 
 
 
  
 
NYRADA INC (ASX:NYR)  

13. Parent entity information 

Set out below is the supplementary information about the Parent entity. 

Statement of profit or loss and other comprehensive income 

2021 

$ 

Parent 

2020 

$ 

Loss after income tax 

(8,226,143) 

(10,372,229) 

Total comprehensive income 

(8,226,143) 

(10,372,229) 

Statement of financial position 

Total current assets 

Total non-current assets 

Total assets 

Total current liabilities 

Total liabilities 

Equity 

Issued capital 

Share-based payments reserve 

Accumulated losses 

Total equity 

2021 

$ 

9,466,431  

-   

Parent 

2020 

$ 

5,046,116  

533,269  

9,466,431  

5,579,385  

268,962  

268,962  

126,781  

126,781  

25,320,332  

4,726,913  

15,607,349  

2,204,324  

(20,849,776) 

(12,359,069) 

9,197,469  

5,452,604  

Guarantees entered into by the Parent entity in relation to the debts of its subsidiaries 

The Parent entity had no guarantees in relation to the debts of its subsidiaries as at 30 June 2021 and 30 
June 2020. 

Contingent liabilities 

The Parent entity had no contingent liabilities as at 30 June 2021 and 30 June 2020. 

Capital commitments - Property, plant and equipment 

The Parent entity had no capital commitments for property, plant and equipment as at 30 June 2021 and 30 
June 2020. 

Significant accounting policies 

The accounting policies of the Parent entity are consistent with those of the Consolidated Entity, as disclosed 
in note 2, except for the following: 

• 

Investments in subsidiaries are accounted for at cost, less any impairment, in the Parent entity. 

•  Dividends received from subsidiaries are recognised as other income by the Parent entity and its 

receipt may be an indicator of an impairment of the investment. 

54 

 
 
 
 
 
 
 
 
 
 
 
 
  
14. Subsidiaries 

Nyrada Pty Ltd1 

Norbio No.2 Pty Ltd 

Cardio Therapeutics Pty Ltd 

Annual Report FY21 

2021 ownership 
interest 

2020 ownership 
interest 

100% 

100% 

100% 

100% 

100% 

100% 

1 On 13 March 2020 the Company changed its name from Norbio No1 Pty Ltd to Nyrada Pty Ltd. 

15. Events after reporting period 

On 30 July 2021 the Company announced it had been granted a US Patent for its PCSK9 Inhibitor. 

On 13 August 2021 the Company announced exploratory analysis results from its in vivo cholesterol efficacy 
study. 

No other matters or circumstances have arisen since 30 June 2021 that have significantly affected, or may 
significantly affect the Consolidated Entity's operations, the results of those operations, or the Consolidated 
Entity's state of affairs in future financial years. 

16. Cash flow information 

Reconciliation of loss after income tax to net cash used in operating activities 

Reconciliation of loss after income tax to net cash used in operating activities 

Loss after income tax expense for the year 

(3,539,253) 

(5,773,667) 

2021 

$ 

2020 

$ 

Adjustments for:  

Depreciation & amortisation  

Share-based payments 

Unwinding of the interest on convertible notes 

Change in operating assets and liabilities  

Decrease/(increase) in trade and other receivables 

Increase/(decrease) in trade and other payables 

Increase/(decrease) in employee benefits 

-   

1,811  

1,111,622  

-   

(281,976) 

(98,620) 

33,568  

-   

1,484  

2,204,324  

140,355  

(1,078,839) 

95,028  

692  

(2,772,848) 

(4,410,623) 

Reconciliation of Cash 

Cash at the end of financial year as included in the statement of cash flows is reconciled to the related items 
in the statement of financial position as follows: 

Cheque account 

USD account 

Saving bonus 

2021 

$ 

220,229  

4,122,025  

9,408,489  

13,750,743  

2020 

$ 

100,056  

298,724  

4,747,389  

5,146,169  

55 

 
 
 
 
 
 
 
 
 
 
 
 
NYRADA INC (ASX:NYR)  

17. Share-based payments 

During the period, Nyrada Inc agreed to grant the following share-based payments to its directors, and other 
executives and advisers. 

2021 

Grant 
date 

18/01/2021 

18/01/2021 

18/01/2021 

18/01/2021 

Expiry  
date 

Balance  
at start of 
the year 

Granted 

Exercised 

Expired/ 
Forfeited/ 
Other 

Balance at 
the end of 
the year 

41,255,656 

- 

441,901 

2,283,755 

38,500,000 

15/02/2021 

18/01/2024 

18/01/2025 

18/01/2026 

- 

- 

- 

- 

- 

- 

1,000,000 

1,000,000 

600,000 

600,000 

600,000 

1,200,000 

8,000,000 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

600,000 

600,000 

600,000 

1,200,000 

8,000,000 

41,225,656  12,000,000 

1,441,901 

2,283,755  49,500,000 

24/02/2021 

3 years from vesting date 

29/06/2021 

29/06/2026 

2020 

Grant 
date 

Expiry  
date 

Balance 
at start of 
the year  Granted 

Expired/ 
Forfeited/ 
Other 

Balance at 
the end of 
the year 

Exercised 

15/02/2018 

3 years from vesting date 

440,000 

15/02/2018 

1/05/2018 

23/05/2018 

23/05/2018 

15/02/2021 

15/02/2021 

15/02/2021 

31/12/2019 

33,000 

22,000 

44,000 

22,000 

23/05/2018 

3 years from vesting date 

22,000 

- 

- 

- 

- 

- 

25/11/2019 

25/11/2019 

25/11/2019 

30/06/2024 

25/11/2022 

30/11/2020 

25/11/2019 

5 years from vesting date 

25/11/2019 

25/11/2019 

25/11/2019 

25/11/2019 

25/11/2023 

25/11/2024 

25/11/2025 

16/01/2023 

25/11/2019 

3 years from vesting date 

25/11/2019 

3 years from vesting date 

25/11/2019 

15/02/2021 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

6,000,000 

2,000,000 

1,725,656 

18,000,0002 

3,600,0001, 2 

3,600,0001, 2 

3,600,000 

800,000 

600,0002 

300,000 

1,000,0002 

583,000  41,225,656 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

440,0002 

33,0002 

22,0002 

44,0002 

22,0002 

22,0002 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

6,000,000 

2,000,000 

1,725,656 

18,000,000 

3,600,000 

3,600,000 

3,600,000 

800,000 

600,000 

300,000 

1,000,000 

583,000 

41,225,656 

1   Note 2 below also applies in respect of 600,000 options in each of these tranches.  

2   On the date when the options were granted, the Company identified these as replacement options for cancelled 

options, which were granted during the 2018 financial year. Therefore, in accordance with AASB 2: Share-Based 
Payments the new options are treated as a modification of the original grant of options, whereby the incremental 
fair value of the new options granted is recognised over the vesting period of the new options. The incremental fair 
value is the difference between the fair value of the replacement options and the net fair value of the cancelled 
options, at the date of grant of the replacement options. The increment is recognised in addition to the amount 
based on the grant date fair value of the original cancelled options, which continue to be recognised over the 
remainder of the original vesting period. 

56 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report FY21 

17. Share-based payments (continued) 

The Company has calculated the fair values of the options granted using the same Black-Scholes model. 

For the options granted during the current financial year, the valuation model inputs used to determine the 
fair value at the grant date are as follows: 

Grant date 

Expiry date 

18/01/2021 

15/02/2021 

18/01/2021 

18/01/2024 

18/01/2021 

18/01/2025 

18/01/2021 

18/01/2026 

24/02/2021 

3 years from  
vesting date 

29/06/2021 

29/06/2026 

29/06/2021 

29/06/2026 

29/06/2021 

29/06/2026 

Assumed 
exercise 
price 

Expected 
volatility 

Dividend 
yield 

Risk-free 
interest rate 

0.26 

0.231 

0.231 

0.231 

0.381 

0.40 

0.60 

0.90 

89.6%  

82.6%  

82.6%  

82.6%  

90.8%  

78.0%  

78.0%  

78.0%  

- 

- 

- 

- 

- 

- 

- 

- 

0.37%  

0.37%  

0.37%  

0.37%  

0.48%  

0.70%  

0.70%  

0.70%  

1   The Exercise price included in the table above is for calculation purposes only. The Exercise price will be calculated 

by the higher of 

• 

• 

100% of the Fair Market Value (as defined in the Company’s Stock Incentive Plan) of the Shares on the date 
that Option is granted; and 

amount equal to 120% of the volume weighted average price of the CDIs for the period of 10 trading days 
immediately prior to the date on which that Option vests. 

18. Loss per share 

Loss after income tax attributable to the owners of 
Nyrada Inc. 

(3,539,253) 

(5,773,667) 

2021 

$ 

2020 

$ 

Weighted average number of ordinary shares used in 
calculating basic earnings per share 

Weighted average number of ordinary shares used in 
calculating diluted earnings per share 

Basic loss per share 

Diluted loss per share 

2021 

2020 

Number 

Number 

116,743,748 

60,911,038 

116,743,748 

60,911,038 

2021 

$ 

(0.03) 

(0.03) 

2020 

$ 

(0.09) 

(0.09) 

There are 16,000,000 of options which have vested and are considered to be dilutive. The options are not 
included as the Consolidated Entity is loss-making, so incorporating in the impacts of contingent equity is 
anti-dilutive.  

57 

 
 
 
 
 
 
 
 
 
 
NYRADA INC (ASX:NYR)  

19. Key Management Personnel disclosures 

Compensation 

The aggregate compensation made to directors and other members of Key Management Personnel of the 
Consolidated Entity is set out below: 

2021 

$ 

691,632  

24,441  

867,397  

2020 

$ 

725,658  

48,062  

783,067  

1,583,470  

1,556,787  

Short-term employee benefits 

Post-employment benefits 

Share-based payments 

20. Related party transactions 

Key Management Personnel 

Any person(s) having authority and responsibility for planning, directing and controlling the activities of the 
entity,  directly  or  indirectly,  including  any  director  (whether  executive  or  otherwise)  of  that  entity,  are 
considered Key Management Personnel. 

For details of disclosures relating to Key Management Personnel, refer to the remuneration report contained 
in the Directors’ report and note 19. 

Other related party transactions 

Mrs  Prue  Kelly  was  employed  on  a  part-time  basis  by  the  Consolidated  Entity  in  the  role  of  Executive 
Assistant and Investor Relations Manager, effective 1 March 2020 to 4 February 2021. Mrs Kelly is the spouse 
of Director Graham Kelly. During the period where Graham Kelly was a director, Mrs Kelly was remunerated 
$23,269 (inclusive of superannuation) at market rates (30 June 2020: $31,025). 

During the year the Company fully settled a $342,322 loan to related party Noxopharm Ltd as disclosed in 
note  8.  Noxopharm  Limited  is  classified  as  a  related  party  as  Nyrada  Inc  and  Noxopharm  Limited  have 
common directors and prior to 29 June 2021,  Noxopharm Limited held in excess of 20% of diluted capital in 
Nyrada  Inc.  The  loan  was  repayable  upon  the  March 2021 Placement.  The  facility  was unsecured  with no 
interest payable.  

During  the  year  ended  30  June  2020,  the  Consolidated  Entity  issued  12,000,600  performance  shares  to 
Noxopharm Limited and 5,999,400 per as an associate. Refer to note 9 for details. 

21. Commitments and contingencies 

There are no significant commitments and contingencies at balance date in the current or prior reporting 
periods. 

58 

 
 
 
 
 
 
 
Annual Report FY21 

22. Financial instruments

Capital management 

The  Consolidated  Entity  manages  its  capital  to  ensure  entities  in  the  Consolidated  Entity  will  be  able  to 
continue  as  going  concern  while  maximising  the  return  to  stakeholders  through  the  optimisation  of  the 
debt and equity balance. 

The Consolidated Entity's overall strategy remains unchanged from 2020. 

The  Company  is  not  subject  to  any  externally  imposed  capital  requirements,  except  for  Chapter  6  of  the 
Corporations Act 2001 in relation to take over provisions and Chapter 7 of ASX listing rules on 15% placement 
capacity on new equity raising. 

On 19 November 2020, at the Annual General Meeting of the Company, the shareholders of Nyrada approved 
an  additional  10%  placement  facility  in  accordance  with  Listing  Rule  7.1A.  The  Company  now  has  total 
placement facility to issue up  to 25% of the share capital of the Company up to 19 November 2021, being 
twelve months since shareholders approved the additional placement capacity. 

Given the nature of the business, the Consolidated Entity monitors capital on the basis of current business 
operations and cash flow requirements. 

Categories of financial instruments 

Financial assets 

Cash and cash equivalents 

Trade and other receivables 

Financial liabilities 

Trade and other payables 

2021 

$ 

13,750,743 

1,360,821 

15,111,564 

2020 

$ 

5,146,169 

1,078,845 

6,225,014 

588,029 

696,883 

The fair value of the above financial instruments approximates their carrying values. 

Financial risk management objectives 

In common with all other businesses, the Consolidated Entity is exposed to risks that arise from its use of 
financial  instruments.  This  note  describes  the  consolidated  entities  objectives,  policies  and  processes  for 
managing those risks and the methods used to measure them. Further quantitative information in respect 
of those risks is presented throughout these financial statements. 

There have been no substantive changes in the Consolidated Entity's exposure to financial instrument risks, 
its objectives, policies and processes for managing those risks or the methods used to measure them from 
previous periods unless otherwise stated in this note. 

The  Board  has  overall  responsibility  for  the  determination  of  the  consolidated  entities  risk  management 
objectives and policies and, whilst retaining ultimate responsibility for them, it has delegated the authority 
for  designing  and  operating  processes  that  ensure  the  effective  implementation  of  the  objectives  and 
policies to the consolidated entities finance function. 

The consolidated entities risk management policies and objectives are therefore designed to minimise the 
potential impacts of these risks on the Consolidated Entity where such impacts may be material. The Board 
receives monthly financial reports through which it reviews the effectiveness of the processes put in place 
and  the  appropriateness  of  the  objectives  and  policies  it  sets.  The  overall  objective  of  the  Board  is  to  set 
policies  that  seek  to  reduce  risk  as  far  as  possible  without  unduly  affecting  the  consolidated  entities 
competitiveness and flexibility. 

59 

NYRADA INC (ASX:NYR) 

22. Financial instruments (continued)

Foreign currency risk management 

The  Consolidated  Entity  undertakes  transactions  denominated  in  foreign  currencies;  consequently, 
exposures to exchange rate fluctuations arise. At 30 June 2021, the Company has cash denominated in US 
dollars (US$3,089,998 (2020: US$204,858)). The A$ equivalent at 30 June 2021 is $4,122,025 (2020: $298,724). 
A 5% movement in foreign exchange rates would increase or decrease the Consolidated Entity’s loss before 
tax by approximately $208,443 (2020: $7,248). 

Liquidity risk management 

Ultimate  responsibility  for  liquidity  risk  management  rests  with  the  Board  of  Directors,  which  has 
established an appropriate liquidity risk management framework for the management of the consolidated 
entities short, medium and long-term funding and liquidity management requirements. The Consolidated 
Entity manages liquidity by maintaining adequate banking facilities, by continuously monitoring forecast 
and actual cash flows, and by matching the maturity profiles of financial assets and liabilities. 

Carrying 
Amount 

Less than 
1 month 

1-3
months 

3-12
months 

1 year to 5 
years 

Total 
contractual 
cash flows 

2021 

$ 

$ 

$ 

$ 

$ 

$ 

Trade and other 
payables 

588,029 

588,029 

- 

- 

- 

588,029 

23. Remuneration of auditors

Audit and review services 

Nexia Sydney Audit Pty Ltd 

William Buck Audit (Vic) Pty Ltd 

Other services 

2021 

$ 

-  

33,500 

33,500 

2020 

$ 

49,500 

-  

49,500 

Nexia Sydney Corporate Advisory Pty Ltd 

-  

32,500 

60 

Annual Report FY21 

Directors’ Declaration 

In the Directors' opinion: 

•

•

•

•

the attached financial statements and notes comply with the Corporations Act 2001, the Accounting 
Standards,  the  Corporations  Regulations  2001  and  other  mandatory  professional  reporting
requirements;

the  attached  financial  statements  and  notes  comply  with  International  Financial  Reporting
Standards as issued by the International Accounting Standards Board as described in note 2 to the
financial statements;

the attached financial statements and notes give a true and fair view of the Consolidated Entity's
financial position as at 30 June 2021 and of its performance for the financial year ended on that date;
and

there are reasonable grounds to believe that the Consolidated Entity will be able to pay its debts as
and when they become due and payable.

The Directors have been given the declarations required by section 295A of the Corporations Act 2001. 

Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations 
Act 2001. 

On behalf of the Directors 

___________________________ 

John Moore 

Non-Executive Chairman 

30 August 2021

61 

NYRADA INC (ASX:NYR) 

Shareholder Information 

Corporate Governance Statement 

The Company’s corporate governance statement is located at the Company’s website: 

https://www.nyrada.com/site/ About-Us/corporate-governance 

CHESS Depositary Interests 

The Company has CHESS Depositary Interests (CDIs) quoted on the Australian Securities Exchange (ASX) 
trading under the ASX code NYR. Each CDI represents an interest in one share of Class A Common Stock of 
the Company (Share). Legal title to the Shares underlying the CDIs is held by CHESS Depositary Nominees 
Pty Ltd (CDN), a wholly owned subsidiary of the ASX. The Company’s securities are not quoted on any other 
exchange. 

All  information  provided  below  is  current  as  at  13  August  2021  except  as  otherwise  stated.  To  avoid 
double-counting, the holding of Shares by CHESS Depositary Nominees Pty Limited (underpinning the CDIs 
on  issue) have been disregarded in the presentation of the information below, unless otherwise stated. 

Distribution of CDIs 

Analysis of number of equitable security holders by size of holding: 

Holding Ranges 

Holders 

Total Units 

% Share Capital 

1 to 1,000 

1,001 to 5,000 

5,001 to 10,000 

10,001 to 100,000 

100,001 and over 

15 

397 

254 

873 

225 

2,867 

1,229,647 

2,091,681 

35,642,173 

117,042,332 

- 

0.79 

1.34 

22.85 

75.02 

1,764 

156,008,700 

100.00 

Unmarketable parcels 

There are 76 shareholdings held with less than a marketable parcel, totalling 95,213 shares or 0.06% of the 
total CDIs. 

Unlisted securities 

•

•

•

•

•

•

18,000,000  Performance  Common  Stock,  with  terms  and  conditions  outlined  in  the  Prospectus
(released to the ASX on 14 January 2020)

8,000,000 Broker Options, with an exercise price of $0.20 and expiry date of 30 June 2024

33,500,000 ESOP Options, with terms and conditions outlined in the Prospectus (released to the ASX
on 14 January 2020) and subsequent allotments

4,000,000 Broker Options, with an exercise price of $0.40 and expiry date of 29 June 2026

2,000,000 Broker Options, with an exercise price of $0.60 and expiry date of 29 June 2026

2,000,000 Broker Options, with an exercise price of $0.90 and expiry date of 29 June 2026

62 

Annual Report FY21 

Distribution of Unlisted Securities (> 20% holding) 

Holder 

NOXOPHARM LIMITED 

ALTNIA HOLDING PTY LTD  

ACNS CAPITAL MARKETS PTY LTD 

GRAHAM KELLY 

ANNA CARINA PTY LTD (ANNA CARINA FAMILY A/C) 

MERSOUND PTY LIMITED 

MR JODET DURAK 

Note 1 –  

Performance 
Common 
Stock 

Broker 
Options2 

Broker 
Options1 

ESOP 
Options 

% 

66.67% 

33.33% 

- 

- 

- 

- 

- 

% 

- 

- 

- 

- 

30.00%  

30.00%  

30.00%  

% 

- 

- 

25.00%  

% 

- 

- 

- 

- 

- 

- 

- 

53.73%  

- 

- 

- 

8,000,000 Broker Options, with an exercise price of $0.20 and expiry date of 30 June 2024 

Note 2 – Broker Options for the following unlisted securities, noting the option holders for each tranche of 
broker options are the same 

2,000,000 Broker Options, with an exercise price of $0.60 and expiry date of 29 June 2026 

2,000,000 Broker Options, with an exercise price of $0.90 and expiry date of 29 June 2026 

Note 3 – There are no holders that hold >20% 

4,000,000 Broker Options, with an exercise price of $0.40  and expiry date of 29 June 2026 

Restricted securities 

Of the total 156,009,700 CDIs on issue: 

• 

33,105,853 CDIs are restricted securities to 16 January 2022 

Of the total 18,000,000 Performance Common Stock on issue: 

• 

18,000,000 Performance Common Stock are restricted securities to 16 January 2022 

Of the total 8,000,000 Broker Options on issue: 

•  8,000,000 Broker Options are restricted securities to 16 January 2022 

Of the total 33,500,000 ESOP Options on issue: 

• 

29,600,000 ESOP Options are restricted securities to 16 January 2022 

Voting rights 

CDI Holders may attend and vote at Nyrada’s general meetings. The Company must allow CDI Holders to 
attend any meeting of Shareholders unless relevant U.S. law at the time of the meeting prevents CDI Holders 
from attending those meetings. 

In order to vote at such meetings, CDI Holders may: 

• 

• 

• 

instruct CDN, as the legal owner, to vote the Shares underlying their CDIs in a particular manner. A 
voting instruction form will be sent to CDI Holders with the notice of meeting or proxy statement 
for the meeting and this must be completed and returned to the Registry before the meeting; 

inform Nyrada that they wish to nominate themselves or another person to be appointed as CDN’s 
proxy for the purposes of attending and voting at the general meeting; or 

convert their CDIs into a holding of Shares and vote these at the meeting. Afterwards, if the former 
CDI Holder wishes to sell their investment on the ASX it would need to convert the Shares back to 
CDIs. In order to vote in person, the conversion from CDIs to Shares must be completed before the 
record date for the meeting. 

One of the above steps must be undertaken before CDI Holders can vote at Shareholder meetings. 

CDI voting instruction forms and details of these alternatives will be included in each notice of meeting or 
proxy statement sent to CDI Holders by Nyrada. 

63 

NYRADA INC (ASX:NYR)  

Required Statements 

The Company advises that the Annual General Meeting (AGM) of the Company is scheduled for Friday 19 
November  2021  at  10:00am (AEDT).  The  location  of the  AGM  is  subject  to  COVID-19  restrictions,  including 
regulatory  requirements.  Further  details,  including  any  hybrid  or  virtual  meeting  arrangements,  will  be 
confirmed closer to the AGM. 

Further  to  Listing  Rule  3.13.1,  Listing  Rule  14.3,  nominations  for  election  of  directors  at  the  AGM  must  be 
received not less than 35 Business Days before the meeting, being no later than Friday 1 October 2021. 

On-Market buy-back 

There is no current on-market buy-back. 

Twenty (20) largest shareholders of quoted equity securities 

Position  Holder 

NOXOPHARM LIMITED 

Holding 

% held 

33,373,245 

21.39% 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

"ALTNIA HOLDING PTY LTD (I DIXON FAMILY A/C)" 

9,921,725 

6.36% 

"SUNSET CAPITAL MANAGEMENT PTY LTD  
(SUNSET SUPERFUND A/C)" 

"COLIN HOUSELY & FREDA HOUSELY  
(CM HOUSLEY & FV HOUSLEY FAM)" 

KOHEN ENTERPRISES PTY LTD 

CANARY CAPITAL PTY LTD 

SYMPHONY CAPITAL HOLDINGS LLC 

PROFESSOR GARY DAVID HOUSLEY 

KYRIACO BARBER PTY LTD 

JOHN W KING NOMINEES PTY LTD 

"GOODRIDGE FOUNDATION PTY LTD  
(GOODRIDGE FOUNDATION A/C)" 

DIXSON TRUST PTY LIMITED 

MR GRAHAM ARTHUR ROBINSON 

2,548,197 

1.63% 

1,863,725 

1,735,000 

1,701,923 

1,425,000 

1.19% 

1.11% 

1.09% 

0.91% 

1,411,411 

0.90% 

1,400,000 

0.90% 

1,242,483 

0.80% 

1,212,416 

0.78% 

1,100,000 

0.71% 

1,082,888 

0.69% 

"HIMSTEDT & CO PTY LTD (THE HIMSTEDT FAMILY A/C)" 

1,057,000 

0.68% 

"RHLC PTY LIMITED (RHLC S/F A/C)" 

1,000,000 

0.64% 

MR MICHAEL FRANCIS MCMAHON & MRS SUSAN LESLEY 
MCMAHON (MCMAHON SUPER FUND A/C) 

MR JASON FERNANDO HADDOCK 

924,616 

0.59% 

873,146 

0.56% 

"SANDHURST TRUSTEES LTD (WUNALA CAPITAL A/C)" 

831,250 

0.53% 

MR ANTHONY JOHN LOCANTRO 

MR JOHN GARDNER 

734,540 

0.47% 

734,384 

0.47% 

Use of funds 

Since admission to the ASX on 16 January 2020 the Company has used its cash in a way consistent with its 
business objectives.  

64 

 
 
 
Annual Report FY21 

www.nyrada.com 

65