2023
Annual Report
OncoSil Medical Ltd • 30 June 2023
Contents
Corporate directory
Chairman’s letter
CEO’s report
Directors’ report
Auditor’s independence declaration
Statement of profit or loss and other comprehensive income
Statement of financial position
Statement of changes in equity
Statement of cash flows
Notes to the financial statements
Directors’ declaration
Independent auditor’s report to the members of OncoSil Medical Ltd
Shareholder information
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3
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30
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34
35
63
64
68
1
Corporate directory
Directors
Mr Otto Buttula - Chairman up to 31 August 2023
Mr Nigel Lange
Mr Brian Leedman
Dr Gabriel Liberatore
Mr Douglas Cubbin - Chairman from 31 August 2023
Company secretary
Mr Christian Dal Cin
Notice of annual general meeting
The details of the annual general meeting of OncoSil Medical Ltd are:
10am on Wednesday 29 November 2023
Registered office
Principal place of business
Share register
Auditor
Solicitors
Bankers
Level 3
62 Lygon Street
Carlton South, Victoria 3053
Phone: +61 2 8935 9629
Level 5
7 Eden Park Drive
Macquarie Park, NSW 2113
Phone: +61 2 8935 9629
Boardroom Pty Limited
Level 12
225 George Street
Sydney NSW 2000
Phone: +61 2 9290 9600
Crowe Sydney
Level 24
1 O’Connell Street
Sydney NSW 2000
K&L Gates
Level 25, South Tower
525 Collins Street
Melbourne VIC 3000
National Australia Bank
330 Collins Street
Melbourne VIC 3000
Stock exchange listing
OncoSil Medical Ltd shares are listed on the Australian Securities Exchange (ASX
code: OSL)
Website
www.oncosil.com
Corporate Governance Statement
OncoSil Medical Ltd and the Board of Directors are committed to achieving and
demonstrating the highest standards of corporate governance. OncoSil Medical
Ltd has reviewed its corporate governance practices against the Corporate
Governance Principles and Recommendations (4th Edition) published by the ASX
Corporate Governance Council.
Details of the corporate governance report is available on the Group website at:
https://www.oncosil.com/investors
2
Chairman’s Letter
Dear Fellow Shareholders,
On behalf of the Board of OncoSil Medical (“OncoSil”), I am pleased to present our 2023 Annual Report. Sadly, it has been a disappointing year
in regard to OncoSil shareholder returns, with the Company’s share price declining markedly following our March-April 2023 heavily discounted
capital raising. Whilst the discount applied was significant, the Board took comfort that its structure was as a rights entitlement issue, thereby
giving all shareholders the opportunity to maintain their desired exposure should they so choose.
Notwithstanding the share price decline, the Company has clearly advanced from the position it was in at the same time last year, with a focus
on increasing commercialisation efforts. Further, we remain driven by the beneficial impact that the Oncosil™ device is achieving in a real-world
setting, with LAPC tumour resection rates remaining pleasing.
Hence, despite the share price malaise, the year saw many operational aspects of the business improve, achieving the following
commercial milestones:
Expansion in the number of countries treating patients with the Oncosil™ device, with first patients treated in Italy and Israel;
An increased number of hospitals treating patients in Spain, including patients having undergone successful resections following treatment
with the Oncosil™ device; and
Obtaining reimbursement from two leading insurance companies for treatments at The London Clinic with the Oncosil™ device in the
private payer market.
Moreover, the team continues to work on developing clinical pathways to support universal public coverage and reimbursement initiatives,
health insurance coverage and treatment adoption, all critical to OncoSil’s medium term growth plans. These include:
The first patient being enrolled in the TRIPP-FFX Clinical Study with the aim of this Clinical Study to expand the CE Marking approved use
of the Oncosil™ device in the UK and the European Union for patients being treated either with gemcitabine-based chemotherapy or
FOLFIRINOX chemotherapy; and
Ethics committee approval was also received during the year for the PANCOSIL clinical trial. The outcome of this study is expected to
increase the number of medical professionals who can deliver the Oncosil™ device to patients.
During the year, Mr Brian Leedman joined the Board as part of its renewal. Brian is a marketing and investor relations professional with over 15
years’ experience in the biotechnology industry. I would also like to acknowledge Professor Ricky Sharma who stepped down from the Board due
to other commitments and I thank him for his contribution to the Board and to the Company. Since period end, we have also appointed two new
directors in Gabriel Liberatore and Doug Cubbin, two very well credentialed executives with deep knowledge of OncoSil Medical’s industry.
On behalf of the Board, I would like to take this opportunity to thank our Chief Executive Officer, Nigel Lange, my fellow Board directors and the
entire OncoSil management team for their commitment to assisting LAPC patients. It would also be remiss of me not to thank Karl Pechmann, our
outgoing CFO and Company Secretary who’s dedication over the previous three years assisted us greatly.
Whilst we respect the patience of shareholders, the Company’s path forward appears brighter and we look forward to the coming year of
advancement in the successful application of this device against this insidious disease.
Financial year 2024 is shaping up to be one of OncoSil’s most important in terms of revenue growth from existing, contracted hospitals across
a growing number of regions as well as potentially the GBA, further data enhancement through several ongoing clinical trials and the possible
approval of the FDA for the OncoSil device in Distal Cholangiocarcinoma (dCCA). Success in each of these avenues will deliver further positive
news, aiming to re-build shareholder value. Importantly, we continue to have dialogue with cornerstone partners through our corporate advisers
Kidder Williams.
Whilst this is my last Annual Report as Chairman, I have been a shareholder in OncoSil for in excess of ten years and whilst the investment returns
have not lived up to expectations, as a shareholder I am proud to have been able to materially improve and save lives from this hideous disease.
I will maintain a keen interest in the Company and wish all stakeholders the best for the future.
Sincerely,
Otto Buttula
Non-Executive Chairman
3
CEO’s Report
CEO’s Report
The past financial year was not without its challenges however, the team remains committed to the goal of improving the lives of patients that suffer
from one of the world’s deadliest cancers. Our team personifies OncoSil’s core values of accountability, integrity, excellence, responsibility, and teamwork.
As a business, we continue to make progress on several key initiatives. We are committed to ensuring the achievement of three inflection points for
OncoSil™. These are i) Approval of the FDA HDE application in Distal Cholangiocarcinoma (dCCA), ii) GBA (Gemeinsamer Bundesausschuss) approval
of German fully funded clinical trial and iii) PANCOSIL clinical trial which is designed to increase the user base to include interventional radiology
administering the OncoSil™ device percutaneously.
Commercialisation
During the year, the team has continued to concentrate on assisting with local regulatory approvals and ethics approvals for the OSPREY patient
registry. The OncoSil™ team continued to engage in site training, with eighteen (18) hospitals are now fully trained and ready to administer the
treatment of the OncoSil™ device in seven (7) different countries.
OncoSil™ continues to make commercial progress in Spain. In Spain, we have a total of 7 hospitals active in commercial treatments with a further 3 fully
trained and ready to commence treating patients. During the year, the first ten (10) patients were treated in Spain with the OncoSil™ device and three
patients in Spain underwent a successful resection of the LAPC tumour following this treatment. Further commercial agreements have been executed
in Spain, most notably in the region of Catalunya and Canary Islands which allows for hospitals possessing the necessary infrastructure to perform
OncoSil™ treatments to utilise the tender to obtain reimbursement.
We are pleased to report the opening of San Camilo Forlanini Hospital (Rome) commencing treating patients with the OncoSil™ device.
In addition, 2 hospitals in Israel are active in commercial patient treatments and are encouraged by the results they have achieved to date.
In the United Kingdom, two leading insurance companies agreed to provide reimbursement for the breakthrough OncoSil™ device in the private payer
market in the UK at The London Clinic. OncoSil team has been working with other insurers to expand reimbursement for patient access to treatments
at other private institutions in the United Kingdom.
An agreement was reached in Austria with University Hospital Sankt Pölten Hospital to commence treating patients commercially.
FY2023 also saw the company reach new distribution agreements in Hong Kong and China Greater Bay area in addition to the Nordic countries.
Clinical and Regulatory Affairs
OncoSil™ remains in dialogue with the FDA concerning the HDE filing. During FY2023, we submitted additional data for inclusion in our file to address
questions raised by the FDA. The regulatory and clinical team proceeded to recast the submission to more clearly define the patient population deemed
to be suitable for treatment with the OncoSil™ device.
Internal discussions continued throughout the year at the GBA with respect to the design of the sponsored clinical trial. OncoSil™ were represented
at the ‘expert’ hearing conducted by the GBA concerning our device and succeeded in meeting the criteria set forth by the agency. There has been a
subsequent delay due to internal discussions on an appropriate endpoint for the clinical trial. A further expert panel hearing is scheduled for later this
calendar year with a view to reaching a consensus.
We are pleased to report the commencement of the TRIPP FFX clinical trial which incorporates the FOLFIRINOX chemotherapy regimen in combination
with the OncoSil™ device. This trial is crucial to include the use of FOLFIRINOX on our approved labelling in the European Union. Seven patients were
recruited into the trial in FY2023.
FY2023 also saw the ethics approval of the PANCOSIL clinical trial which is designed to assess the safety of administering the OncoSil™ device
percutaneously under ultrasound guidance. This trial is significant since it will expand the user base to include Interventional Radiology/Interventional
Oncology.
4
4
CEO’s Report
Financial Position
As at June 30, 2023, OncoSil had a cash balance of $9.4 million. Over the year, the Company’s net cash used in operations was $11.3 million, with $2.5
million invested in R & D activities.
FY2023 also saw the completion of a capital raising in the amount of $9.9 million from a non-renounceable entitlement offer. The offer resulted in the
allotment of new shares as well as listed options (ASX: OSLO).
I thank all new and existing investors for supporting the capital raising. This raise will permit the Company to continue to further commercialisation our
technology on a broader scale in 2024.
Finally, I would like to thank all our shareholders for their continued support of OncoSil™. Our achievements in 2023 were significant and we look
forward to continuing this trajectory in 2024. The team and I continue our efforts as we strive to make a difference in improving patient outcomes in
pancreatic cancer.
Sincerely,
Nigel Lange
Chief Executive Officer
OncoSil Medical Limited
Looking to the future
Pancreatic cancer incidence by region
25.2%
United States
30%
Europe
%
2.7
United Kingdom
16.9%
Urban China
8.4%
Japan
16.8%
Rest of the world
Projected net increase in
incidence rates (% 2021-2029)
Where we have approvals
41.7 %
17.8%
16.4%
Urban China
USA
Spain
13.39%
11.6%
10%
United Kindom
France
Italy
9%
8%
Japan
Germany
European Union
United Kingdom
New Zealand
Hong Kong
Switzerland
Turkey
Israel
5
* Data taken from GlobalData 2020 Pancreatic Cancer: Opportunity Analysis and Forecasts to 2029
Looking to the future
Pancreatic cancer incidence by region
25.2%
United States
30%
Europe
%
2.7
United Kingdom
16.9%
Urban China
8.4%
Japan
16.8%
Rest of the world
Projected net increase in
incidence rates (% 2021-2029)
Where we have approvals
41.7 %
17.8%
16.4%
Urban China
USA
Spain
13.39%
11.6%
10%
United Kindom
France
Italy
9%
8%
Japan
Germany
European Union
United Kingdom
New Zealand
Hong Kong
Switzerland
Turkey
Israel
* Data taken from GlobalData 2020 Pancreatic Cancer: Opportunity Analysis and Forecasts to 2029
6
6
Site Training Update
FY23 Highlights
Training new sites to start OncoSil treatments
Continuous investment in commercialization
1
Netherlands
4 4
United Kindom
Training Commenced
Training Completed
and ready to start
Sites using OncoSil
4 3
Turkey
1 2
Israel
1
Belgium
2
Italy
3 7
Spain
1 5
Germany
1 1
Portugal
8
Jul
Dec
Bupa UK approves
reimbursement for
OncoSil in the UK
at The London Clinic
OncoSil signs distribution
agreement for selected
Chinese markets
May
First patient enrolled in the
TRIPP-FXX clinical study
First patient treated
with OncoSil in Italy
OncoSil completes
9.9 million capital raising
Sept
Jan
June
Brian Leedman
appointed to the
Board of OncoSil
First patient treated
with OncoSil in Israel
Ethics Committee
approves PANCOSIL
(Percuteneous)
clinical trial
Clinical data
Commercial expansion
Site Training Update
FY23 Highlights
Training new sites to start OncoSil treatments
Continuous investment in commercialization
1
Netherlands
4 4
United Kindom
Training Commenced
Training Completed
and ready to start
Sites using OncoSil
4 3
Turkey
1 2
Israel
1
Belgium
2
Italy
3 7
Spain
1 5
Germany
1 1
Portugal
Jul
Dec
Bupa UK approves
reimbursement for
OncoSil in the UK
at The London Clinic
OncoSil signs distribution
agreement for selected
Chinese markets
May
First patient enrolled in the
TRIPP-FXX clinical study
First patient treated
with OncoSil in Italy
OncoSil completes
9.9 million capital raising
Sept
Jan
June
8
8
Brian Leedman
appointed to the
Board of OncoSil
First patient treated
with OncoSil in Israel
Ethics Committee
approves PANCOSIL
(Percuteneous)
clinical trial
Clinical data
Commercial expansion
The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as
the ‘Group’) consisting of OncoSil Medical Ltd (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 2023.
Directors
The following persons were directors of OncoSil Medical Ltd during the whole of the financial year and up to the date of this
report, unless otherwise stated:
Mr Otto Buttula – Non-Executive Chairman (announced intention to resign on 24 May 2023, resignation effective from 31 August 2023)
Mr Nigel Lange – Chief Executive Officer and Managing Director
Mr Brian Leedman – Non-Executive Director (appointed 15 September 2022)
Dr Gabriel Liberatore – Non-Executive Director (appointed 14 July 2023)
Mr Douglas Cubbin – Non-Executive Director (appointed on 7 August 2023) and Chairman from 31 August 2023
Prof. Ricky Sharma – Non-Executive Director (resigned on 28 February 2023)
Dr Martin Cross – Non-Executive Director (resigned on 24 October 2022)
Information on directors
Name:
Title:
Mr Otto Buttula
Non-Executive Chairman
Qualifications:
B. Ec. Grad Dip. SIA, FAICD
Experience and expertise:
Mr Buttula has had extensive experience and success in investment research,
funds management, information and biotechnologies and has held directorships
in a number of public companies. Mr Buttula’s executive experience includes co-
founder and CEO and Managing Director of IWL Ltd, an online financial services
company that listed on the ASX in 1999. The company grew from a market
capitalisation of $48 million at listing before a takeover in 2007 by Commonwealth
Bank of Australia for $373 million. Mr Buttula also founded and was Managing
Director of Investors Mutual, prior to which he was a co-founder and director
of Lonsdale Securities Limited. Following his completion of executive duties, Mr
Buttula was Non-Executive Chairman of platform and stockbroking provider
Investorfirst Ltd and led the acquisition of HUB24 Limited (ASX: HUB). More
recently, he served on the Board as a Non-Executive Director and Head of Audit
and Risk at Imugene Ltd (ASX: IMU) between 2014 and 2016 and currently is the
Executive Chairman of Rhythm Biosciences Ltd (ASX: RHY) and Non-Executive
Chairman of HITIQ Ltd (ASX: HIQ).
Other current directorships:
Executive Chairman of Rhythm Biosciences Ltd (ASX: RHY) and Non-Executive
Chairman of HITIQ Ltd (ASX: HIQ)
Former directorships (last 3 years):
None
Special responsibilities:
Member of the Nomination and Remuneration Committee and member of Audit
and Risk Committee
Interests in shares:
32,307,694 ordinary shares
Interests in options:
8,000,000 unlisted options
9
Directors’ reportOncoSil Medical Ltd • 30 June 2023 Name:
Title:
Mr Nigel Lange
Chief Executive Officer and Managing Director
Qualifications:
BA, B.Comm
Experience and expertise:
Nigel joined the Company in May 2020 as Europe, Middle East and Africa (‘EMEA’)
President and brings with him over 30 years of experience in the medical devices
industry. Since 2003, Nigel has held various leadership roles with Sirtex Medical,
a global leader in brachytherapy treatment for liver cancer. From 2003, Nigel
served as Chief Executive Officer of Sirtex’s European business, responsible for
establishing their brachytherapy device in over 300 centres across Europe and the
Middle East. Since 2017, Nigel served as Group Chief Commercial Officer where he
was responsible for all commercial aspects of the global business. During this time,
Nigel has also held interim roles including Interim Group CEO and Interim CEO of
Asia Pacific.
Other current directorships:
None
Former directorships (last 3 years):
None
Special responsibilities:
Member of the Nomination and Remuneration Committee and member of Audit
and Risk Committee
Interests in shares:
7,218,303 ordinary shares
5,718,303 performance dependent loan shares
Interests in options:
1,000,000 listed options
Interests in rights:
5,311,428 performance rights
Name:
Title:
Mr Brian Leedman
Non-Executive Director
Qualifications:
B. Ec, MBA
Experience and expertise:
Mr Leedman is a marketing and investor relations professional with over 15
years’ experience in the biotechnology industry. Mr Leedman is the founder of
ResApp Diagnostics Pty Ltd which was acquired by Narhex Life Sciences Limited
to form ResApp Health Limited where Mr Leedman was the Executive Director of
Corporate Affairs. ResApp Health was acquired by Pfizer (Aust) Limited in 2022.
Mr Leedman is an experienced public company director having formerly been
the Chairman of Neurotech International Limited, Nutritional Growth Solutions
Limited, Neuroscientific Biopharmaceuticals Limited and was a Director of Alcidion
Corporation Limited. Prior to ResApp, Mr Leedman co-founded OncoSil Medical
Limited and Biolife Science (QLD) Limited (acquired by Imugene Limited). Mr
Leedman previously served for ten years as Vice President, Investor Relations for
pSivida Corp. Limited, which was listed on the ASX, Frankfurt and NASDAQ. He
was formerly the WA Chairman of AusBiotech, the association of biotechnology
companies in Australia.
Other current directorships:
Respiri Limited (ASX: RSH)
Former directorships (last 3 years):
ResApp Health Limited (ASX: RAP), Neurotech International Limited (ASX:
NTI), Nutritional Growth Solutions Limited (ASX: NGS) and NeuroScientific
Biopharmaceuticals Limited (ASX: NSB)
10
Special responsibilities:
Member of the Nomination and Remuneration Committee and member of Audit
and Risk Committee
Interests in shares:
2,927,975 ordinary shares
Interests in options:
4,000,000 unlisted options
500,000 listed options
Name:
Title:
Dr Gabriel Liberatore
Non-Executive Director
Qualifications:
PhD, MBA
Experience and expertise:
Dr Liberatore is an experienced biopharmaceutical executive with over 25 years’
experience in senior Business Development, R&D and strategic operational
management positions including taking products to market. Until recently, he
was the Group Chief Operating Officer at Telix Pharmaceuticals (ASX:TLX) a global
biopharmaceutical company focused on the development and commercialisation
of diagnostic and therapeutic radiopharmaceuticals. Currently, Dr Liberatore is
a Strategic Advisor to GlyTherix Ltd, an Australian immuno-oncology company
specializing in developing antibody radiopharmaceuticals for solid tumours.
Other current directorships:
None
Former directorships (last 3 years):
None
Special responsibilities:
Member of the Nomination and Remuneration Committee and member of Audit
and Risk Committee
Interests in shares:
Interests in options:
None
None
Name:
Title:
Mr Douglas Cubbin
Non-Executive Director
Qualifications:
BBus., FCPA, GAICD
Experience and expertise:
Mr Cubbin is an experienced biopharmaceutical executive with over 30 years’
experience in senior executive, CFO, Director and Chair roles, across varied
industries.
During his tenure as Group Chief Financial Officer at Telix Pharmaceuticals Limited
(ASX:TLX), a global biopharmaceutical company focused on the development and
commercialisation of diagnostic and therapeutic radiopharmaceuticals, he was a
key member of the team which successfully completed the IPO, raised $270 million
in capital and grew the business to a multi-billion dollar market capitalisation.
Mr Cubbin has also served as Chairman of various boards, including Australian
Nuclear Science and Technology Organisation (ANSTO) Nuclear Medicine.
Other current directorships:
None
Former directorships (last 3 years):
None
Special responsibilities:
Member of the Nomination and Remuneration Committee and member of Audit
and Risk Committee
11
Directors’ reportOncoSil Medical Ltd • 30 June 2023 Interests in shares:
Interests in options
None
None
‘Other current directorships’ quoted above are current directorships for listed entities only and excludes directorships of all
other types of entities, unless otherwise stated.
‘Former directorships (last 3 years)’ quoted above are directorships held in the last 3 years for listed entities only and excludes
directorships of all other types of entities, unless otherwise stated.
Company secretary
Mr Karl Pechmann resigned as company secretary and CFO on 1 June 2023, with Christian Dal Cin appointed to both roles on the
same day.
Christian Dal Cin has extensive experience with listed and private companies including corporate secretarial, accounting and
general management through The CFO Solution and previous roles.
Principal activities
The principal activities of the Group during the financial year focused on the development and commercialisation of its lead
product candidate, the OncoSil™ localised radiation therapy for the treatment of pancreatic and distal cholangiocarcinoma.
Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Review of operations
The loss for the Group after providing for income tax amounted to $11,342,926 (30 June 2022: $10,726,703).
OncoSil Medical Limited is an ASX-listed medical device company which has developed a breakthrough implantable radiation
(brachytherapy) device for patients with pancreatic and distal cholangiocarcinoma (dCCA). The Oncosil™ device has CE Marking
approval for the treatment of locally advanced pancreatic cancer in combination with gemcitabine-based chemotherapy.
Commercialisation
During the year the team has continued to concentrate on assisting with local regulatory approvals and ethics approvals for the
OSPREY patient registry. The OncoSil team continued to engage in site training, with twelve (12) hospitals now fully trained to
administer the treatment of the Oncosil™ device in ten (10) countries.
During the year, the first patient treatments with the Oncosil™ device were delivered in Italy, and Israel.
In the United Kingdom, two leading insurance companies agreed to provide reimbursement for the breakthrough Oncosil™
device in the private payer market in the UK at The London Clinic. The OncoSil team has been working with other insurers to
expand reimbursement for patient access to treatments at other private institutions in the United Kingdom.
The year saw an expansion in the number of sites in Spain using the Oncosil™ device, with the seventh (7th) hospital
undertaking a patient treatment. During the year, the first ten (10) patients were treated in Spain with the Oncosil™ device and
two patients in Spain underwent a successful resection of the LAPC tumour following this treatment.
In April 2023, a tender was awarded to OncoSil from the Las Palmas Hospital in the Canary Islands, Spain, valued at €220K
(A$361k).
12
In December 2022, OncoSil signed a distribution agreement with Hind Wing Company Limited (Hind Wing), a company based
in Hong Kong SAR provides exclusive distribution rights for the sale of the OncoSil™ device within the Hong Kong, Macao, The
Greater Bay Area, China and the Hainan Special Economic Zone, China.
In Germany, the Company is awaiting final study design for the fully funded clinical trial in Germany, which will be funded by the
Federal Joint Committee (G-BA). The Company will receive sales revenue for the provision of the Oncosil™ device over the course
of the clinical trial. A successful outcome of this trial would enable the company to receive public funding from statutory health
insurers under the German DRG system for the treatment of patients within this market.
Clinical and regulatory affairs
During the year the team has continued to develop and execute on its strategic objectives related to the further clinical
development of the technology.
Further data was submitted for OncoSil’s Humanitarian Device Exemption (HDE) application to the US Food and Drug
Administration (FDA) with respect to the treatment of distal cholangiocarcinoma (bile duct cancer). The HDE will mark an
important milestone in the Company’s commercialisation strategy upon approval.
The first patient was enrolled in the TRIPP-FFX Clinical Study with the aim of this Clinical Study to expand the CE Marking
approved use of the Oncosil™ device in the UK and the European Union for patients being treated either with gemcitabine-
based chemotherapy or FOLFIRINOX chemotherapy. The objective of the TRIPP-FFX Clinical Study is to evaluate the safety
and efficacy of Oncosil™ in patients with unresectable Locally Advanced Pancreatic Cancer who are treated with FOLFIRINOX
chemotherapy.
The primary endpoints of the study include safety and tolerability and Local Disease Control Rate at 16 weeks. Secondary
endpoints will also be included in the study, including Overall Survival (OS), quality of life, pain scores, tumour response and
surgical resection rates.
Ethics committee approval was also received during the year for the PANCOSIL clinical trial. The study involves the treatment
of 15 patients with the Oncosil™ device which will be delivered percutaneously (by inserting a needle directly through the skin
into the pancreatic tumour, under CT guidance) rather than endoscopically guided by ultrasound, which is the current approved
method of implantation. The outcome of this study is expected to increase the number of medical professionals who can deliver
the Oncosil™ device to patients.
The first multi-centre data on Oncosil™ in the treatment in patients with metastatic pancreatic cancer was presented at the
European Society for Medical Oncology (ESMO) World Congress on Gastrointestinal Cancer (WCGIC) meeting in June 2023.
The study was a retrospective analysis of 14 patients with metastatic pancreatic cancer from 5 centres in Australia and the
United Kingdom treated using OncoSil in addition to standard-of-care chemotherapy. The study found that OncoSil implantation
into the primary pancreatic tumour was safe and feasible for patients with metastatic pancreatic cancer, with a 100% Local
Disease Control Rate (LDCR) at 3 months after implantation.
Corporate
During the year Mr Brian Leedman was appointed to the Board of Directors. Mr Leedman is a marketing and investor relations
professional with over 15 years’ experience in the biotechnology industry.
The Company also completed at $9.9m capital raising consisting of a non-renounceable entitlement offer and the placement of
shortfall to sophisticated and professional investors. The entitlement offer resulted in 989,242,262 shares and 989,242,262 listed
options (ASX: OSLO), exercise price $0.03 expiring on 30 April 2027, being issued.
13
Directors’ reportOncoSil Medical Ltd • 30 June 2023 Financial position and performance
OncoSil had a cash balance of $9,393,832 as at 30 June 2023. During the year, OncoSil earned modest revenue from the sale of
the Oncosil™ device of $367,677 (2022: $231,789).
Recognised revenue from the Research and Development tax incentive in 2023 was $1,099,744 (2022: $831,598), reflecting lower
Research and Development expenses and a higher proportion of activities being directed towards commercial activities.
Employee benefits expenses decreased to $4,711,692 (2022: $5,266,026) as OncoSil focusing in sales, reimbursement and clinical
resources to assist in commercialisation.
Significant changes in the state of affairs
There were no significant changes in the state of affairs of the Group during the financial year.
Matters subsequent to the end of the financial year
The Company announced changes to its board after the reporting period, namely:
On 14 July 2023, Mr Gabriel Liberatore was appointed to the Board as a Non-Executive Director.
On 7 August 2023, Mr Douglas Cubbin was appointed to the Board as a Non-Executive Director and will assume the position of
elected Chairperson from 31 August 2023 onwards.
No other matter or circumstance has arisen since 30 June 2023 that has significantly affected, or may significantly affect the
Group’s operations, the results of those operations, or the Group’s state of affairs in future financial years.
Likely developments and expected results of operations
The Company is currently progressing its manufacturing capabilities, supply chain and sales and marketing infrastructure to
achieve commercial sales in the European Union and the United Kingdom, as well as seeking to obtain marketing approval in
markets which recognise the CE Mark. The CE Marking approval requires the Company to conduct a post marketing surveillance
program which requires approvals at hospital sites and at a country level. The Company has a Humanitarian Device Exemption
(HDE) submission pending with the United States Food and Drug Administration (FDA) for the use of the OncoSil™ device for the
treatment of distal cholangiocarcinoma (bile duct cancer). A Global Pivotal Clinical Study will be undertaken, aimed at supporting
a pre-marketing application in the United States in future years for pancreatic cancer. There can be no guarantees that in the
future we will achieve these regulatory approvals, or on the basis sought by the Company, and there are no guarantees of the
rate of enrolment of the Pivotal Clinical Study or the outcome of clinical results.
Business risks
The following is a summary of material business risks that could adversely affect our financial performance and growth
potential in future years and how we propose to mitigate such risks.
Research and Development
The Group’s future levels of success will be influenced by the performance of the Group’s product in future clinical trials.
Expanded usage of the Company’s device requires additional research and development, including ongoing clinical evaluation
of safety and efficacy in clinical trials and regulatory approval prior to marketing authorisation. Medical device development
generally is often associated with a high failure rate and until the Company is able to provide further clinical evidence of the
ability of the Group’s product to improve outcomes in patients, the future success of the product in development remains
speculative. Research and development risks include uncertainty of the outcome of results, difficulties or delays in development
and the uncertainty around that surrounds scientific development of novel medical devices generally.
14
Future potential sales
Despite obtaining CE Mark regulatory approval, the Group’s products/technologies may not gain market acceptance among
physicians, patients and the medical community. The degree of market acceptance of the Group’s approved products will
depend on a variety of factors including:
• Timing of market introduction, number and clinical profile of competitive products;
• The Group’s ability to provide acceptable evidence of the safety and efficacy and its ability to secure the support of key
clinicians and physicians for its products;
• Cost-effectiveness compared to existing and new treatments;
• Inclusion in national treatment guidelines;
• Ability for coverage, market access, reimbursement and adequate payment from government bodies,
health maintenance organisations and other third-party payers;
• Prevalence and severity of adverse side effects; and
• Other advances over other treatment methods.
Physicians, patients, payers or the medical community may be unwilling to accept, use or recommend the Group’s products
which would adversely affect its potential reviews and future profitability.
Regulatory risk
The Group and the development/commercialisation of its proposed products/technologies are subject to extensive laws and
regulations including but not limited to the regulation of human medical device products. Additionally, human clinical trials are
very expensive and difficult to design and implement, in part because they are subject to rigorous regulatory requirements. A
risk exists that the Group’s technology may not satisfy regulatory requirements in markets in which we are seeking approval
and ultimately may not gain approval, or that the approval process may take much longer than expected. As a result, the Group
may fail to commercialise or out-license any products. If the Group fails to remain compliant with these various regulatory
requirements, there is a risk that the Group’s financial performance could be adversely affected.
Reliance on key personnel
The Group currently employs a number of key management and scientific personnel, and the Group’s future depends on
retaining and attracting suitably qualified personnel. The Group has included in its employment with key personnel provisions
aimed at providing incentives and assisting in the recruitment and retention of such personnel. It has also, as far as legally
possible, established contractual mechanisms through employment and consultancy contracts to limit the ability of key
personnel to join a competitor or compete directly with the Group. Despite these measures, however, there is no guarantee that
the Group will be able to attract and retain suitably qualified personnel, and a failure to do so could materially and adversely
affect the value of the Group’s technology.
Capital raising
The Group currently relies on Capital raising activities to provide funding. By monitoring undiscounted cash flow forecasts and
actual cash flows provided to the Board by the Group’s management, the Board monitors the need to raise additional equity
from the equity markets. The Group has a history of successful Capital raises, however recognises the risks in raising Capital in
the current markets.
Environmental regulation
The Group is not subject to any significant environmental regulation under Australian Commonwealth or State law.
15
Directors’ reportOncoSil Medical Ltd • 30 June 2023 Meetings of directors
The number of meetings of the Company’s Board of Directors (‘the Board’) held during the year ended 30 June 2023, and the
number of meetings attended by each director were:
Full Board
Nomination and
Audit and
Remuneration Committee
Risk Committee
Attended
Held
Attended
Held
Attended
Held
6
6
4
3
5
6
6
4
3
5
1
1
1
-
-
1
1
1
-
-
4
4
2
1
3
4
4
2
1
3
Mr Otto Buttula
Mr Nigel Lange
Mr Brian Leedman
Dr Martin Cross
Prof. Ricky Sharma
Held: represents the number of meetings held during the time the director held office or was a member of the relevant committee.
Remuneration report (audited)
The remuneration report, which has been audited, details the key management personnel (‘KMP’) remuneration arrangements
for the Group, in accordance with the requirements of the Corporations Act 2001 and its Regulations.
KMP are those persons having authority and responsibility for planning, directing and controlling the activities of the entity,
directly or indirectly, including all directors.
The remuneration report is set out under the following main headings:
• Principles used to determine the nature and amount of remuneration
• Details of remuneration
• Service agreements
• Share-based compensation
• Additional information
• Additional disclosures relating to KMP
Principles used to determine the nature and amount of remuneration
The objective of the Group’s executive rewards framework is to ensure the remuneration package properly reflects each person’s
duties and responsibilities and that remuneration is competitive in attracting, retaining and motivating people of the highest
quality. The framework aligns executive reward with the achievement of strategic objectives and the creation of value for
shareholders, and it is considered to conform to the market best practice for the delivery of reward. The Board of Directors (‘the
Board’) ensures that executive reward satisfies the following key criteria for good reward governance practices:
• competitiveness and reasonableness;
• acceptability to shareholders;
• performance linkage / alignment of executive compensation; and
• transparency.
The Board of Directors are responsible for determining and reviewing remuneration arrangements for its directors and
executives. The performance of the Group depends on the quality of its directors and executives. The remuneration philosophy
is to attract, motivate and retain high performance and high-quality personnel.
16
The Board has structured an executive remuneration framework that is market competitive and complementary to the reward
strategy of the Group.
The Board has considered that the reward framework is designed to align to shareholders’ interests by:
• having economic profit as a core component of plan design;
• focusing on sustained growth in shareholder wealth, consisting of dividends and growth in share price, and delivering
constant or increasing return on assets as well as focusing the executive on key non-financial drivers of value; and
• attracting and retaining high calibre executives.
Additionally, the reward framework should seek to enhance executives’ interests by:
• rewarding executives for Group and individual performance against targets set by reference to appropriate benchmarks;
• aligning the interests of executives with those of shareholders;
• linking reward with the strategic goals and performance of the Group; and
• ensuring total remuneration is competitive by market standards.
In accordance with best practice corporate governance, the structure of non-executive director and executive director
remuneration is separate.
Non-executive directors’ remuneration
Fees and payments to non-executive directors reflect the demands and responsibilities of their role. Non-executive directors’
fees and payments are reviewed annually by the Board. The Board may, from time to time, receive advice from independent
remuneration consultants to ensure non-executive directors’ fees and payments are appropriate and in line with the market. The
chairman’s fees are determined independently to the fees of other non-executive directors based on comparative roles in the
external market. The chairman is not present at any discussions relating to the determination of his own remuneration.
Non-executive directors are also entitled to government statutory superannuation guarantee contribution. They may also be
granted shares, aligning their interests with those of the shareholders.
ASX listing rules require the aggregate non-executive directors’ remuneration be determined periodically by a general meeting.
The most recent determination was at the Annual General Meeting held on 26 November 2015, where the shareholders
approved a maximum annual aggregate director’s fees payable to non-executive directors of $500,000.
Executive remuneration
The Group aims to reward executives based on their position and responsibility, with a level and mix of remuneration which has
both fixed and variable components.
The executive remuneration and reward framework has four components:
• base pay and non-monetary benefits;
• short-term performance incentives;
• long-term incentives; and
• other remuneration such as superannuation and long service leave.
The combination of these comprises the executive’s total remuneration.
17
Directors’ reportOncoSil Medical Ltd • 30 June 2023 Structure
Executive directors are contracted to the Group either on a consultancy basis with remuneration and terms stipulated in
individual consultancy arrangements or pursuant to an employment contract with remuneration and terms stipulated in
individual employment agreements.
Fixed remuneration, consisting of base salary, superannuation and non-monetary benefits, are reviewed annually by the
Board based on individual and business unit performance, the overall performance of the Group and comparable market
remuneration.
Executives are given the opportunity to receive their base emolument in a variety of forms including cash and fringe benefits
such as motor vehicles and expense payment plans. It is intended that the manner of payment chosen will be optimal for the
recipient without creating undue cost for the Group.
The short-term incentives (‘STI’) program is designed to align the targets of the business units with the performance hurdle
of executives. STI payments are granted to executives based on specific annual targets and key performance indicators
(‘KPI’s’) being achieved. In particular, all executive directors and other KMP may be entitled to annual bonuses payable upon
the achievement of annual corporate or profitability measures. The Group seeks to emphasise payment for results through
providing various cash bonus reward schemes, specifically the incorporation of incentive payments based on achievement of
approved targets.
The long-term incentives (‘LTI’) include share-based payments. Currently limited recourse loans are awarded to executives
in order for the executive to subscribe for ordinary shares in the Company under the OncoSil Employee Share Plan. These
performance dependent loan shares will vest upon achieving of long-term KPI’s as agreed with the executive, measured over
terms varying from three to five years. These KPI’s include, but are not limited to, an increase in shareholders’ value, revenue
targets or meeting regulatory and clinical measures. The Nomination and Remuneration Committee reviewed the long-term
equity-linked performance incentives specifically for executives during the year ended 30 June 2023.
Group performance and link to remuneration
Remuneration for certain individuals is directly linked to the performance of the Group. A portion of cash bonus and incentive
payments are dependent on defined earnings per share targets being met. The remaining portion of the cash bonus and
incentive payments are at the discretion of the Board. Refer to the section ‘Additional information’ below for details of the
earnings and total shareholders return for the last five years.
Use of remuneration consultants
The Group did not engage the use of a remuneration consultant during the financial year ended 30 June 2023.
Voting and comments made at the Company’s 2022 Annual General Meeting (‘AGM’)
At the 2022 AGM, 80% of the votes received supported the adoption of the remuneration report for the year ended 30 June
2022. The Company did not receive any specific feedback at the AGM regarding its remuneration practices.
18
Details of remuneration
Amounts of remuneration
The KMP of the Group consisted of the directors of OncoSil Medical Ltd and the following persons:
• Mr Karl Pechmann – Chief Financial Officer and Company Secretary (resigned on 24 May 2023 and effective from 1 June 2023)
Details of the remuneration of KMP of the Group are set out in the following tables.
Short-term benefits
employment
Post-
Long-
term
Share-based payments
benefits
benefits
Cash
salary
Cash
Non-
Super-
and fees
bonus
monetary
annuation
2023
$
$
$
$
Long
service
leave
$
Equity-
settled
options
$
Equity-
settled
shares
$
Total
$
Non-Executive Directors:
Mr Otto Buttula
(Chairman)
Dr Martin Cross *
Mr Brian Leedman
Prof. Ricky Sharma**
Executive Directors:
90,498
24,133
39,593
60,213
Mr Nigel Lange
388,259
Other KMP:
Mr Karl Pechmann
298,730
901,426
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9,506
2,537
4,157
-
-
28,967
45,167
-
-
-
-
-
-
-
-
-
-
-
-
-
-
60,526
160,530
-
26,670
30,263
74,013
15,361
75,574
250,313
638,572
-
327,697
356,463
1,303,056
* Represents remuneration for the period from 1 July 2022 to date of resignation 24 October 2022.
** The remuneration payments to Prof. Ricky Sharma were made to their director-related entity Professor Sharma Consultancy
Limited. Represents remuneration for the period from 1 July 2022 to date of resignation 28 February 2023.
19
Directors’ reportOncoSil Medical Ltd • 30 June 2023 Short-term benefits
employment
benefits
Post-
Long-term
benefits
Share-based payments
Cash salary
Cash
Non-
Super-
and fees
bonus
monetary
annuation
2022
$
$
$
$
Long
service
leave
$
Equity-
settled
options
$
Equity-
settled
shares
$
Total
$
Non-Executive Directors:
Mr Otto Buttula
Dr Martin Cross
Prof. Ricky Sharma *
Dr Chris Roberts AO
(Chairman) * **
Dr Roger Aston **
81,769
72,727
53,178
30,163
24,242
Mr Michael Bassett * **
24,086
Executive Directors:
Mr Nigel Lange
388,199
Other KMP:
Mr Karl Pechmann
267,800
942,164
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
8,177
7,273
-
-
2,424
-
26,780
44,654
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
89,946
80,000
53,178
30,163
26,666
24,086
25,868
194,422
608,489
10,813
22,608
328,001
36,681
217,030 1,240,529
* The remuneration payments to Prof. Ricky Sharma, Dr Chris Roberts and Mr Michael Bassett were made to their director
related entities, Professor Sharma Consultancy Limited, Robertsplan Pty Ltd and Market Connect Australia Pty Ltd, respectively.
** Represents remuneration for the period from 1 July 2021 to date of resignation 19 October 2021.
20
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Name
2023
2022
2023
2022
2023
2022
Fixed remuneration
At risk – STI
At risk – LTI
Non-Executive Directors:
Mr Otto Buttula
Dr Martin Cross
Mr Brian Leedman
Prof. Ricky Sharma
Dr Chris Roberts AO
Dr Roger Aston
Mr Michael Bassett
Executive Directors:
62%
100%
59%
80%
-
-
-
100%
100%
100%
100%
100%
100%
100%
Mr Nigel Lange
60%
64%
Other KMP:
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
38%
-
41%
20%
-
-
-
-
-
-
-
-
-
-
40%
36%
Mr Karl Pechmann
100%
90%
-
-
-
10%
The proportion of the cash bonus paid/payable or forfeited is as follows:
Name
2023
2022
2023
2022
Cash bonus paid/payable
Cash bonus forfeited
Executive Directors:
Mr Nigel Lange
Other KMP:
Mr Karl Pechmann
Service agreements
-
-
-
-
-
-
100%
100%
Remuneration and other terms of employment for KMP are formalised in service agreements. Details of these agreements are
as follows:
Name:
Title:
Mr Nigel Lange
Chief Executive Officer and Managing Director
Agreement commenced:
21 January 2021
Term of agreement:
Ongoing until terminated by OncoSil or Mr Lange
Details:
Base salary of €250,000 per annum. Additional benefits of motor vehicle, medical insurance and
statutory pension entitlements (value approximately €25,000 per annum). Cash bonus up to 35%
of base salary subject to achievement of KPI’s as agreed with the Board. Mr Lange is eligible to
participate in the long-term incentive plan up to 35% of base salary. Either party may terminate
the contract by providing six months’ written notice.
21
Directors’ reportOncoSil Medical Ltd • 30 June 2023 Name:
Title:
Karl Pechmann
Chief Financial Officer and Company Secretary
Agreement commenced:
31 March 2020
Term of agreement:
No fixed term - resigned on 24 May 2023 and effective from 1 June 2023
Details:
Base salary for the year ended 30 June 2023 of $298,730 plus superannuation, to be reviewed
annually by the NRC, three months termination notice by either party, cash bonus up to 25% of
salary subject to achievement of KPIs as set by the Board. There is a restraint period of six months
ending on the date of termination of employment. He is eligible to participate in the long-term
incentive plan as approved by shareholders.
KMP have no entitlement to termination payments in the event of removal for misconduct.
Share-based compensation
Issue of shares
There were no shares issued to directors and other KMP as part of compensation during the year ended 30 June 2023 other than
those issued under the Employee Share Plan below.
Employee Share Plan (‘ESP’)
Certain employees have been issued limited recourse loans to acquire shares in the Company. In accordance with the Australian
Accounting Standards, these performance dependent loan shares are accounted for in a similar manner as options.
Terms and conditions of share-based payment arrangements affecting the remuneration of KMP in the current financial year are
set out below:
Number of
Name
performance dependent
Grant date
Expiry date
loan shares granted
Exercise
price
Fair value of performance
dependent loan per
share at grant date
Mr Nigel Lange
5,718,303
05/11/2020
05/11/2025
$0.13
Mr Karl Pechmann*
664,926
05/11/2020
05/11/2025
$0.13
$0.102
$0.102
*Mr Karl Pechmann forfeited 664,926 performance dependent loan shares on resignation on 23 June 2023.
The shares cannot be traded by the holder until their related loan has been settled and the shares released.
For performance dependent loan shares issued on 5 November 2020, shares vest automatically if and when the OncoSil 3-year
Total Shareholder Return (TSR) achieves a compound annual growth rate (CAGR) based on the following table:
TSR CAGR Performance
Loan Funded Shares that Vest (%)
<15%
15% (threshold performance)
0%
50%
> 15% and < 25%
Straight-line vesting between 50% and 100%
25% or more (stretch)
100%
22
Performance rights
The terms and conditions of each grant of performance rights over ordinary shares affecting remuneration of directors and
other KMP in this financial year or future reporting years are as follows:
Name
Number of
rights granted
Grant date
Vesting
date and
exercisable
date
Share price
Fair value
Expiry date
hurdle for
per right at
vesting
grant date
Mr Nigel Lange
2,841,633
20/10/2021
20/10/2024
20/10/2025
$0.00
$0.039
Mr Karl Pechman*
1,187,823
20/10/2021
20/10/2024
20/10/2025
Mr Nigel Lange
2,469,795
25/10/2022
25/10/2025
25/10/2026
Mr Karl Pechman*
1,181,468
25/10/2022
25/10/2025
25/10/2026
$0.00
$0.00
$0.00
$0.039
$0.033
$0.033
*Mr Karl Pechmann forfeited 2,369,291 performance rights on resignation on 23 June 2023.
Performance rights granted carry no dividend or voting rights.
For the performance rights issued on 20 October 2021, performance rights vest automatically if and when the 3-year OncoSil
Total Shareholder Return (TSR) achieves a compound annual growth rate (CAGR) based on the following table:
TSR CAGR Performance
30-day VWAP share price hurdle
on 30 June 2024
Performance rights that Vest (%)
< 20%
20% (threshold performance)
< $0.0765
$0.0765
0%
50%
> 20% and < 40%
Between $0.0765 and $0.0892
Straight-line vesting between 50% and 100%
40% or more (stretch)
> $0.0892
100%
For the performance rights issued on 25 October 2022, performance rights vest automatically if and when the 3-year OncoSil
Total Shareholder Return (TSR) achieves a compound annual growth rate (CAGR) based on the following table:
TSR CAGR Performance
30-day VWAP share price hurdle
on 30 June 2025
Performance rights that Vest (%)
< 20%
20% (threshold performance)
< $0.0532
$0.0532
0%
50%
> 20% and < 40%
Between $0.0532 and $0.0621
Straight-line vesting between 50% and 100%
40% or more (stretch)
> $0.0621
100%
Other than the above, there were no performance dependent loan shares or performance rights over ordinary shares granted
to or vested in directors and other KMP as part of compensation during the year ended 30 June 2023.
23
Directors’ reportOncoSil Medical Ltd • 30 June 2023 Options
The terms and conditions of each grant of options over ordinary shares affecting remuneration of directors and other KMP in
this financial year or future reporting years are as follows:
Name
Number of
rights granted
Grant date
Vesting
date and
exercisable
date
Expiry date
Exercise price
per option at
Fair value
Mr Otto Buttula
8,000,000
25/10/2022
25/10/2025
25/10/2027
$0.12
Mr Brian Leedman
4,000,000
25/10/2022
25/10/2025
25/10/2027
Prof. Ricky Sharma*
4,000,000
25/10/2022
25/10/2025
25/10/2027
$0.12
$0.12
grant date
$0.033
$0.033
$0.033
*Prof. Ricky Sharma forfeited 3,540,146 options on resignation on 28 February 2023.
Values of options over ordinary shares granted, exercised and lapsed for directors and other KMP as part of compensation
during the year ended 30 June 2023 are set out below:
Value of options
Value of options
Value of options
Remuneration
granted during
exercised during
lapsed during
consisting of
the year
$
60,526
30,263
15,361
the year
the year
options for the year
$
-
-
-
$
-
-
-
%
62%
59%
80%
Name
Mr Otto Buttula
Mr Brian Leedman
Prof. Ricky Sharma
Additional information
The earnings of the Group for the five years to 30 June 2023 are summarised below:
2023
$
2022
$
2021
$
2020
$
2019
$
Revenue/income
1,530,028
1,073,518
1,497,941
2,958,779
3,845,045
Loss after income tax
(11,342,926)
(10,726,703)
(10,433,523)
(4,261,895)
(8,566,731)
The factors that are considered to affect total shareholders return (‘TSR’) are summarised below:
Share price at financial
year end ($)
Basic earnings per share
(cents per share)
2023
0.01
2022
0.04
2021
0.05
2020
0.12
2019
0.05
(1.00)
(1.32)
(1.28)
(0.65)
(1.36)
24
Additional disclosures relating to KMP
Shareholding
The number of shares in the Company held during the financial year by each director and other members of KMP of the Group
including their personally related parties (including those held under an Employee Share Plan), is set out below:
Balance at
the start of
Received
as part of
the year
remuneration
Additions
Other *
Balance at
the end of
the year
Ordinary shares
Mr Otto Buttula
34,615,387
Mr Nigel Lange
Mr Brian Leedman **
Dr Martin Cross
Mr Karl Pechmann
6,218,303
1,500,000
3,461,538
1,884,565
47,679,793
-
-
-
-
-
-
3,000,000
(5,307,693)
32,307,694
1,000,000
1,427,975
-
-
-
-
7,218,303
2,927,975
3,461,538
1,219,639
(3,104,204)
-
6,647,614
(8,411,897)
45,915,510
* Other represents ordinary shares disposed of or held on date of resignation.
** Opening balance represents 1,500,000 shares privately held on the date of appointment as a director.
Loan shares holding
The number of performance dependent loan shares over ordinary shares in the Company held during the financial year by each
director and other members of KMP of the Group, is set out below:
Loan shares over ordinary shares *
Mr Nigel Lange
Mr Karl Pechmann
Balance at
the start of
the year
5,718,303
664,926
6,383,229
Granted
Exercised
Other **
Balance at
the end of
the year
-
-
-
-
-
-
-
5,718,303
(664,926)
-
(664,926)
5,718,303
* None of the performance dependent loan shares over ordinary shares have vested at the end of the year since the related
loans haven’t been repaid.
** Other represents performance dependent loan shares held on date of resignation.
25
Directors’ reportOncoSil Medical Ltd • 30 June 2023 Performance rights holding
The number of performance rights over ordinary shares in the Company held during the financial year by each director and
other members of key management personnel of the Group, including their personally related parties, is set out below:
Performance rights over ordinary shares
Mr Nigel Lange
Mr Karl Pechmann
Balance at
the start of
the year
Granted
Vested
forfeited/
the end of
Expired/
Balance at
other *
the year
2,841,633
2,469,795
1,187,823
1,181,468
4,029,456
3,651,263
-
-
-
-
5,311,428
(2,369,291)
-
(2,369,291)
5,311,428
* Other represents performance rights held on date of resignation.
Options holding
The number of options over ordinary shares in the Company held during the financial year by each director and other members
of key management personnel of the Group, including their personally related parties, is set out below:
Options over ordinary shares
Mr Otto Buttula
Mr Nigel Lange
Mr Brian Leedman
Prof Ricky Sharma
Mr Karl Pechmann
Balance at
the start of
the year
Granted
Vested
forfeited/
the end of
Expired/
Balance at
other *
the year
-
-
-
-
-
-
8,000,000
-
1,000,000
(1,000,000)
4,500,000
(500,000)
-
-
-
4,000,000
(459,854)
(3,540,146)
1,219,639
(1,219,639)
-
8,000,000
-
4,000,000
-
-
18,719,639
(3,179,493)
(3,540,146)
12,000,000
* Other represents options held on date of resignation.
Mr Nigel Lange, Mr Brian Leedman and Mr Karl Pechmann participated in the Entitlement Rights offer announced on 17 March
2023 and were allotted 1,000,000, 500,000 and 1,219,639 options respectively on the same terms as other shareholders.
Other transactions with KMP and their related parties
Payment of Director’s fees to Dr Chris Roberts AO, were made to his director-related entity, Robertsplan Pty Ltd during the
financial year of $Nil (2022: $30,163).
Payment of Director’s fees to Mr Michael Bassett, were made to his director-related entity, Market Connect Australia Pty Ltd
during the financial year of $Nil (2022: $24,086).
Payment of Director’s fees to Prof. Ricky Sharma, were made to his director-related entity, Professor Ricky Sharma Consultancy
Limited during the financial year of $60,213 (2022: $53,178).
This concludes the remuneration report, which has been audited.
26
OncoSil Medical Ltd • 30 June 2023
Directors’ report
Shares under option
Unissued ordinary shares of OncoSil Medical Ltd under option at the date of this report are as follows:
Grant date
Expiry date
Exercise price
Number under option
25/10/2022
25/10/2027
11/05/2023 *
30/04/2027
$0.12
$0.03
12,459,854
989,242,262
1,001,702,116
* Options granted pursuant to non-renounceable entitlement offer announced on 17 March 2023.
Shares under performance dependent loan shares
Unissued ordinary shares of OncoSil Medical Ltd under performance dependent loan shares outstanding at the date of this
report are as follows:
Grant date
Expiry date
Exercise price
Number under rights
31/10/2018
31/10/2018
25/03/2020
25/03/2020
05/11/2020
20/10/2025
31/10/2023
25/03/2025
25/03/2025
05/11/2025
$0.00
$0.00
$0.00
$0.00
$0.00
7,575,676
650,000
698,531
698,530
6,829,929
9,526,990
Shares under performance dependent loan shares
Unissued ordinary shares of OncoSil Medical Ltd under performance dependent loan shares outstanding at the date of this
report are as follows:
Expiry date
Exercise price
Number under loan shares
Grant date
31/10/2018
31/10/2023
31/10/2018
31/10/2023
25/03/2020
25/03/2025
25/03/2020
25/03/2025
05/11/2020
05/11/2025
$0.00
$0.00
$0.00
$0.00
$0.00
650,000
650,000
698,531
698,530
6,829,929
9,526,990
No person entitled to exercise the performance dependent loan shares had or has any right by virtue of the performance
dependent loan shares to participate in any share issue of the Company or of any other body corporate.
27
27
Shares under performance rights
Unissued ordinary shares of OncoSil Medical Ltd under performance rights outstanding at the date of this report are as follows:
Grant date
20/10/2021
25/10/2022
Expiry date
Exercise price
Number under rights
20/10/2025
25/10/2026
$0.00
$0.00
7,575,676
9,659,800
17,235,476
28
Shares issued on the exercise of options
There were no ordinary shares of OncoSil Medical Ltd issued on the exercise of options during the year ended 30 June 2023 and
up to the date of this report.
Shares issued on the exercise of performance dependent loan shares
There were no ordinary shares of OncoSil Medical Ltd issued on the exercise of performance dependent loan shares during the
year ended 30 June 2023 and up to the date of this report.
Shares issued on the exercise of performance rights
There were no ordinary shares of OncoSil Medical Ltd issued on the exercise of performance rights during the year ended 30
June 2023 and up to the date of this report.
Indemnity and insurance of officers
The Company has indemnified the directors and executives for costs incurred, in their capacity as a director or executive, for
which they may be held personally liable, except where there is a lack of good faith.
During the financial year, the Company paid a premium in respect of a contract to insure the directors and executives of the
Company against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure
of the nature of the liability and the amount of the premium.
Indemnity and insurance of auditor
The Company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the
Company or any related entity against a liability incurred by the auditor.
During the financial year, the Company has not paid a premium in respect of a contract to insure the auditor of the Company or
any related entity.
Proceedings on behalf of the Company
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of
the Company, or to intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on
behalf of the Company for all or part of those proceedings.
Non-audit services
There were no non-audit services provided during the financial year by the auditor.
Officers of the Company who are former partners of Crowe Sydney
There are no officers of the Company who are former partners of Crowe Sydney.
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.
This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations Act 2001.
On behalf of the directors
Mr Otto Buttula
Non-Executive Chairman
31 August 2023
Sydney
29
Crowe Sydney
ABN 97 895 683 573
Level 24, 1 O’Connell Street
Sydney NSW 2000
Main +61 (02) 9262 2155
Fax +61 (02) 9262 2190
www.crowe.com.au
31 August 2023
The Board of Directors
OncoSil Medical Ltd
Level 3, 62 Lygon Street
Carlton South, Victoria 3053
Dear Board Members
OncoSil Medical Ltd
In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following
declaration of independence to the Directors of OncoSil Medical Ltd.
As lead audit partner for the audit of the financial report of OncoSil Medical Ltd for the financial year
ended 30 June 2023, I declare that to the best of my knowledge and belief, that there have been no
contraventions of:
(i)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(ii) any applicable code of professional conduct in relation to the audit
Yours sincerely,
Crowe Sydney
Barbara Richmond
Partner
Some of the Crowe personnel involved in preparing this document may be members of a professional scheme approved under Professional
Standards Legislation such that their occupational liability is limited under that Legislation. To the extent that applies, the following disclaimer
applies to them. If you have any questions about the applicability of Professional Standards Legislation Crowe’s personnel involved in preparing
this document, please speak to your Crowe adviser.
Liability limited by a scheme approved under Professional Standards Legislation.
The title ‘Partner’ conveys that the person is a senior member within their respective division, and is among the group of persons who hold an
equity interest (shareholder) in its parent entity, Findex Group Limited. The only professional service offering which is conducted by a partnership
is external audit, conducted via the Crowe Australasia external audit division and Unison SMSF Audit. All other professional services offered by
Findex Group Limited are conducted by a privately owned organisation and/or its subsidiaries.
Findex (Aust) Pty Ltd, trading as Crowe Australasia is a member of Crowe Global, a Swiss verein. Each member firm of Crowe Global is a
separate and independent legal entity. Findex (Aust) Pty Ltd and its affiliates are not responsible or liable for any acts or omissions of Crowe
Global or any other member of Crowe Global. Crowe Global does not render any professional services and does not have an ownership or
partnership interest in Findex (Aust) Pty Ltd. Services are provided by Crowe Sydney, an affiliate of Findex (Aust) Pty Ltd
© 2023 Findex (Aust) Pty Ltd
Statement of profit or loss and other
comprehensive income
For the year ended 30 June 2023
Revenue
Other income
Interest revenue calculated using the effective interest method
Expenses
Raw materials and consumables used
Employee benefits expense
Research and development expenses
Marketing expense
Occupancy expenses
Consulting, finance and legal expenses
Net foreign exchange loss
Share-based payments
Other administrative expenses
Finance costs
Loss before income tax expense
Income tax expense
Loss after income tax expense for the year attributable
to the owners of OncoSil Medical Ltd
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Foreign currency translation
Other comprehensive income for the year, net of tax
Total comprehensive income for the year attributable to the
owners of OncoSil Medical Ltd
Basic earnings per share
Diluted earnings per share
Consolidated
Note
2023
$
2022
$
5
6
7
7
367,677
231,789
1,099,744
831,598
62,607
10,131
(1,588,774)
(972,474)
(4,711,692)
(5,266,026)
(2,851,070)
(2,376,474)
(130,415)
(370,212)
(83,311)
(57,853)
(1,674,419)
(1,122,080)
59,145
(139,488)
17
(385,600)
(593,305)
(1,377,628)
(882,685)
(10,900)
(19,624)
(11,342,926)
(10,726,703)
-
-
(11,342,926)
(10,726,703)
336
336
87,372
87,372
(11,342,590)
(10,639,331)
Cents
(1.00)
(1.00)
Cents
(1.32)
(1.32)
7
8
28
28
The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes
3131
Statement of financial position
As at 30 June 2023
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Other assets
Total current assets
Non-current assets
Plant and equipment
Right-of-use assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Lease liabilities
Employee benefits
Total current liabilities
Non-current liabilities
Lease liabilities
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
Consolidated
Note
2023
$
2022
$
9
10
11
9,393,832
11,279,841
1,285,680
907,742
555,448
556,976
11,234,960
12,744,559
91,725
54,133
12
147,536
270,799
239,261
324,932
11,474,221
13,069,491
13
14
1,357,963
1,460,800
146,245
165,375
64,957
141,652
1,569,165
1,767,827
15
24,563
138,839
24,563
138,839
1,593,728
1,906,666
9,880,493
11,162,825
16
17
86,507,329
79,909,727
7,740,701
4,277,709
(84,367,573)
(73,024,611)
9,880,493
11,162,825
The above statement of financial position should be read in conjunction with the accompanying notes
32
Statement of changes in equity
For the year ended 30 June 2023
Consolidated
Issued
capital
$
Accumulated
Reserves
losses
Total equity
$
$
$
Balance at 1 July 2021
70,397,314
3,597,032
(62,297,908)
11,696,438
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:
-
-
-
-
(10,726,703)
(10,726,703)
87,372
-
87,372
87,372
(10,726,703)
(10,639,331)
Contributions of equity, net of transaction costs (note 16)
9,512,413
-
Share-based payments (note 29)
-
593,305
-
-
9,512,413
593,305
Balance at 30 June 2022
79,909,727
4,277,709
(73,024,611)
11,162,825
Consolidated
Issued
capital
$
Accumulated
Reserves
losses
Total equity
$
$
$
Balance at 1 July 2022
79,909,727
4,277,709
(73,024,611)
11,162,825
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:
-
-
-
-
336
(11,342,926)
(11,342,926)
-
336
336
(11,342,926)
(11,342,590)
Contributions of equity, net of transaction costs (note 16)
6,597,602
-
Share-based payments (note 29)
Listed options granted (note 17)
-
-
385,600
3,077,056
-
-
-
6,597,602
385,600
3,077,056
Balance at 30 June 2023
86,507,329
7,740,701
(84,367,537)
9,880,493
The above statement of changes in equity should be read in conjunction with the accompanying notes
3333
Statement of cash flows
For the year ended 30 June 2023
Cash flows from operating activities
Receipts from customers
Payments to suppliers and employees
Interest received
Interest and other finance costs paid
Research and development tax incentive
Consolidated
Note
2023
$
2022
$
370,477
267,159
(12,559,294)
(11,199,442)
62,607
(10,900)
821,476
10,131
(19,624)
831,598
Net cash used in operating activities
26
(11,315,634)
(10,110,178)
Cash flows from investing activities
Payments for property, plant and equipment
(57,819)
(5,832)
Net cash used in investing activities
(57,819)
(5,832)
Cash flows from financing activities
Proceeds from issue of shares, net of transaction costs
Proceeds from issue of listed options
Repayment of lease liabilities
16
-
6,597,602
9,316,244
3,077,056
-
(187,214)
(160,229)
Net cash from financing activities
9,487,444
9,156,015
Net decrease in cash and cash equivalents
(1,886,009)
(959,995)
Cash and cash equivalents at the beginning of the financial year
11,279,841
12,239,836
Cash and cash equivalents at the end of the financial year
9
9,393,832
11,279,841
The above statement of cash flows should be read in conjunction with the accompanying notes
34
Note 1. General information
The financial statements cover OncoSil Medical Ltd as a Group consisting of OncoSil Medical Ltd (the ‘Company’ or ‘parent
entity’) and the entities it controlled at the end of, or during, the year (the ‘Group’). The financial statements are presented in
Australian dollars, which is OncoSil Medical Ltd’s functional and presentation currency.
OncoSil Medical Ltd is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office
and principal place of business is:
Registered Office
Principle place of business
Level 3
62 Lygon Street
Level 3
7 Eden Park Drive
Carlton South, Victoria, 3053
Macquarie Park, NSW 2113
A description of the nature of the Group’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 31 August 2023. The
directors have the power to amend and reissue the financial statements.
Note 2. Significant accounting policies
The principal accounting policies adopted in the preparation of the financial statements are set out either in the respective notes
or below. These policies have been consistently applied to all the years presented, unless otherwise stated.
New or amended Accounting Standards and Interpretations adopted
The Group 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. The adoption of these Accounting
Standards and Interpretations did not have any significant impact on the financial performance or position of the Group.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
The following Accounting Standards and Interpretations are most relevant to the Group:
AASB 2020-3 Amendments to Australian Accounting Standards – Annual Improvements 2018-2020 and Other Amendments
AASB 2020-3 was issued in June 2020 and is applicable to annual periods beginning on or after 1 January 2022. Early adoption is
permitted.
This standard amends:
• AASB 1 ‘First-time Adoption of Australian Accounting Standards’ to simplify the application of AASB 1 by a subsidiary that
becomes a first-time adopter after its parent in relation to the measurement of cumulative translation differences;
• AASB 3 ‘Business Combinations’ to update a reference to the Conceptual Framework (see below) without changing the
accounting requirements for business combinations;
• AASB 9 ‘Financial Instruments’ to clarify the fees an entity includes when assessing whether the terms of a new or modified
financial liability are substantially different from the terms of the original financial liability;
• AASB 116 ‘Property, Plant and Equipment’ to require an entity to recognise the sales proceeds from selling items produced
while preparing property, plant and equipment for its intended use and the related cost in profit or loss, instead of deducting
the amounts received from the cost of the asset;
• AASB 137 ‘Provisions, Contingent Liabilities and Contingent Assets’ to specify the costs that an entity includes when assessing
whether a contract will be loss-making; and
35
Notes to the financial statementsOncoSil Medical Ltd • 30 June 2023
Note 2. Significant accounting policies (continued)
• AASB 141 ‘Agriculture’ to remove the requirement to exclude cash flows from taxation when measuring fair value, thereby
aligning the fair value measurement requirements in AASB 141 with those in other AAS.
Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board (‘AASB’) and the Corporations Act 2001, as appropriate for
for-profit oriented entities. These financial statements also comply with International Financial Reporting Standards as issued by
the International Accounting Standards Board (‘IASB’).
Historical cost convention
The financial statements have been prepared under the historical cost convention. The financial statements have also been
prepared on a going concern basis.
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 Group’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.
Going concern
These financial statements have been prepared on a going concern basis, which assumes continuity of normal business activities
and the realisation of assets and the settlement of liabilities in the ordinary course of business. During the financial year ended 30
June 2023 the Group has reported a net loss after tax of $11,342,926 (2022: $10,726,703) and cash outflows from operative
activities of $11,315,634 (2022: $10,110,178). As at 30 June 2023, the Group holds cash and cash equivalents of $9,393,832 (2022:
11,279,841).
The directors have assessed the financial and operating implications of the above matters, including the expected net cash
outflows over the next 12 months. Should forecasted revenue not be achieved, the Group can flexibly manage cash outflows by
reducing discretionary expenditure. Based on this consideration, the directors are of the view that the Group will be able to pay its
debts as and when they fall due for at least 12 months following the date of these financial statements and that it is appropriate
for the financial statements to be prepared on the going concern basis.
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the Group only. Supplementary
information about the parent entity is disclosed in note 24.
Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of OncoSil Medical Ltd as at 30 June
2023 and the results of all subsidiaries for the year then ended. OncoSil Medical Ltd and its subsidiaries together are referred to in
these financial statements as the ‘Group’.
Subsidiaries are all those entities over which the Group has control. The Group controls an entity when the Group is exposed to, or
has rights to, variable returns from its involvement with the entity and has the ability to 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 Group.
They are de-consolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between entities in the Group 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
Group.
36
Note 2. Significant accounting policies (continued)
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 Group 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 Group 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.
Foreign currency translation
The financial statements are presented in Australian dollars, which is OncoSil Medical Ltd’s functional and presentation currency.
Foreign currency transactions
Foreign currency transactions are translated into the Company’s functional currency using the exchange rates prevailing at the dates
of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at
financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.
Foreign operations
The assets and liabilities of foreign operations are translated into Australian dollars using the exchange rates at the reporting date.
The revenues and expenses of foreign operations are translated into Australian dollars using the average exchange rates, which
approximate the rates at the dates of the transactions, for the period. All resulting foreign exchange differences are recognised in
other comprehensive income through the foreign currency reserve in equity.
The foreign currency reserve is recognised in profit or loss when the foreign operation or net investment is disposed of.
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 Group’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 Group’s normal operating cycle; it is held primarily for
the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no unconditional right to defer
the settlement of the liability for at least 12 months after the reporting period. All other liabilities are classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
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 over their
expected useful lives as follows:
Office equipment
3-15 years
The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date.
37
Notes to the financial statementsOncoSil Medical Ltd • 30 June 2023 Note 2. Significant accounting policies (continued)
An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to the Group.
Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss.
Research and development costs
Research costs are expensed in the period in which they are incurred. Development costs will be capitalised if and when: it is probable
that the project will be a success considering its commercial and technical feasibility; the Group is able to use or sell the asset; the
Group has sufficient resources and intent to complete the development; and its costs can be measured reliably.
Borrowings
Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction costs. They are
subsequently measured at amortised cost using the effective interest method.
Employee benefits
Short-term employee benefits
Liabilities for wages and salaries and other employee benefits 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.
Long-term employee benefits
Employee benefits not expected to be settled within 12 months of the reporting date are measured as the present value of expected
future payments to be made in respect of services provided by employees up to the reporting date. Consideration is given to expected
future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted
using market yields at the reporting date on high quality corporate bonds with terms to maturity and currency that match, as closely
as possible, the estimated future cash outflows.
Defined contribution superannuation expense
Contributions to defined contribution superannuation plans are expensed in the period in which they are incurred.
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.
Comparatives
Comparatives have been realigned where necessary, to be consistent with current year presentation. There was no effect on profit,
net assets or equity.
38
Note 2. Significant accounting policies (continued)
New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not
been early adopted by the Group for the annual reporting period ended 30 June 2023. The Group has not yet assessed the impact of
these new or amended Accounting Standards and Interpretations.
Note 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.
Share-based payment transactions
The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity
instruments at the date at which they are granted. The fair value is determined by using the Black-Scholes, Binomial or Monte-
Carlo model taking into account the terms and conditions upon which the instruments were granted. Share based payment
transactions in prior years were valued using the Black-Scholes and Monte-Carlo models. 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.
Research and development tax incentive
The Group measures the research and development tax incentive (‘RDTI’) based on the preparation of the income tax return for
the year therefore assumptions and judgement are involved to determine whether some costs are appropriated to RDTI.
Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary differences only if the Group considers it is probable that future
taxable amounts will be available to utilise those temporary differences and losses.
Lease term
The lease term is a significant component in the measurement of both the right-of-use asset and lease liability. Judgement is
exercised in determining whether there is reasonable certainty that an option to extend the lease or purchase the underlying
asset will be exercised, or an option to terminate the lease will not be exercised, when ascertaining the periods to be included
in the lease term. In determining the lease term, all facts and circumstances that create an economical incentive to exercise an
extension option, or not to exercise a termination option, are considered at the lease commencement date. Factors considered
may include the importance of the asset to the Group’s operations; comparison of terms and conditions to prevailing market
rates; incurrence of significant penalties; existence of significant leasehold improvements; and the costs and disruption to
replace the asset. The Group reassesses whether it is reasonably certain to exercise an extension option, or not exercise a
termination option, if there is a significant event or significant change in circumstances.
Incremental borrowing rate
Where the interest rate implicit in a lease cannot be readily determined, an incremental borrowing rate is estimated to discount
future lease payments to measure the present value of the lease liability at the lease commencement date. Such a rate is based
on what the Group estimates it would have to pay a third party to borrow the funds necessary to obtain an asset of a similar
value to the right-of-use asset, with similar terms, security and economic environment.
39
Notes to the financial statementsOncoSil Medical Ltd • 30 June 2023 Note 4. Operating segments
Identification of reportable operating segments
The Group operates in one segment being the device development for new medical treatments. This is based on the internal
reports that are reviewed and used by the Board of Directors (who are identified as the Chief Operating Decision Makers
(‘CODM’)) in assessing performance and in determining the allocation of resources. There is no aggregation of operating
segments.
The information reported to the CODM is on at least a monthly basis. The financial information presented in these financial
statements are the same as that presented to the CODM.
The Group currently derives revenue in the Australia and New Zealand region and in Europe. Information of revenue from
products is included in note 5.
Major customers
During the year ended 30 June 2023 there were no major customers. A customer is considered major if its revenues are 10% or
more of the Group’s revenue.
Note 5. Revenue
Sales revenue
Disaggregation of revenue
The disaggregation of revenue from contracts with customers is as follows:
Major product lines
OncoSil device
Geographical regions
APAC (Australia and New Zealand)
Europe
Timing of revenue recognition
Goods transferred at a point in time
Consolidated
2023
$
2022
$
367,677
231,789
Consolidated
2023
$
2022
$
367,677
231,789
255,889
231,789
111,788
-
367,677
231,789
367,677
231,789
40
Note 5. Revenue (continued)
Accounting policy for revenue recognition
The Group recognises revenue as follows:
Sale of goods
Revenue from the sale of goods is recognised when the performance obligation is satisfied, which is at the point in time the
customer obtains control of the goods at the time of delivery.
Note 6. Other income
Consolidated
2023
$
2022
$
Research and development tax incentive
1,099,744
831,598
Accounting policy for:
Research and development tax incentive
The research and development tax incentive (‘RDTI’) represents a refundable tax offset that is available on eligible research
and development expenditure incurred by the Group. The RDTI is considered to be a form of government assistance and the
accounting policy adopted is analogous to accounting for government grants.
The RDTI is recognised at fair value where there is a reasonable assurance that the incentive will be received and the Group will
comply with all attached conditions.
The RDTI relating to expenses is recognised as incurred at the point of time in profit or loss.
Other income
Other income is recognised when it is received or when the right to receive payment is established.
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.
41
Notes to the financial statementsOncoSil Medical Ltd • 30 June 2023 Note 7. Expenses
Loss before income tax includes the following specific expenses:
Cost of sales
Cost of sales
Depreciation
Office equipment
Buildings right-of-use assets
Motor vehicles right-of-use assets
Consolidated
2023
$
2022
$
1,588,774
972,474
20,227
97,766
57,896
29,142
97,766
64,855
Total depreciation
175,889
191,763
Employee benefits (excluding share-based payments)
Employee benefits
Defined contribution superannuation expense
4,567,984
5,115,259
143,708
150,767
Total employee benefits expense
4,711,692
5,266,026
Finance costs
Interest and finance charges paid/payable on borrowings
5
-
Interest and finance charges paid/payable on lease liabilities
10,895
19,624
Finance costs expensed
10,900
19,624
Leases
Short-term lease payments
45,644
57,854
42
Note 8. Income tax
Numerical reconciliation of income tax expense and tax at the statutory rate
Loss before income tax expense
Tax at the statutory tax rate of 25%
Tax effect amounts which are not deductible/(taxable) in calculating taxable income
Research and development – write back
Share-based payments
Others
Consolidated
2023
$
2022
$
(11,342,926)
(10,726,703)
(2,835,732)
(2,681,676)
357,101
250,701
96,400
148,326
(299,818)
(21,228)
Future income tax benefit not brought to account
2,682,049
2,303,877
Income tax expense
-
-
Tax losses not recognised
Unused tax losses for which no deferred tax asset has been recognised
33,770,706
23,787,907
Potential tax benefit @ 25%
8,442,676
5,946,977
The above potential tax benefit for tax losses has not been recognised in the statement of financial position. These tax losses
can only be utilised in the future if the continuity of ownership test is passed, or failing that, the same business test is passed.
The corporate tax rate applicable to base rate entities reduces 25% for the 2022-23 income year. The Company qualifies as a
base rate entity as it has a turnover of less than $50 million and less than 80% of its assessable income is derived from base rate
entity passive income. The Company has remeasured its deferred tax balances, and any unrecognised potential tax benefits
arising from carried forward tax losses, based on the effective tax rate that is expected to apply in the year the temporary
differences are expected to reverse or benefits from tax losses realised. The impact of the change in tax rate on deferred tax
balances has been recognised as tax expense in profit or loss or as an adjustment to equity to the extent to which the deferred
tax relates to items previously recognised outside profit or loss.
Accounting policy for 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.
43
Notes to the financial statementsOncoSil Medical Ltd • 30 June 2023 Note 8. Income tax (continued)
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.
Note 9. Current assets – cash and cash equivalents
Cash at bank
Cash on deposit
Consolidated
2023
$
2022
$
9,276,213
11,162,548
117,619
117,293
9,393,832
11,279,841
Accounting policy for 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 between three and six months that are readily convertible to known amounts of cash and
which are subject to an insignificant risk of changes in value.
Note 10. Current assets – trade and other receivables
Trade receivables
Other receivables
Research and development tax incentive receivable
Consolidated
2023
$
2022
$
61,254
16,500
124,682
59,643
1,099,744
831,599
1,224,426
891,242
1,285,680
907,742
44
Note 10. Current assets – trade and other receivables (continued)
Accounting policy for 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 Group 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.
Note 11. Current assets – other assets
Prepayments
Other deposits
Note 12. Non-current assets – right-of-use assets
Buildings – right-of-use
Less: Accumulated depreciation
Motor vehicles - right-of-use
Less: Accumulated depreciation
Consolidated
2023
$
2022
$
438,879
467,705
116,569
89,271
555,448
556,976
Consolidated
2023
$
2022
$
317,748
317,748
(228,128)
(130,362)
89,620
187,386
174,843
172,823
(116,927)
(89,410)
57,916
83,413
147,536
270,799
The Group leases buildings for its offices under agreements of between 3 to 5 years with, in some cases, options to extend.
The leases have various escalation clauses. On renewal, the terms of the leases are renegotiated. The Group also leases motor
vehicles under agreements of between 3 to 5 years.
45
Notes to the financial statementsOncoSil Medical Ltd • 30 June 2023 Note 12. Non-current assets – right-of-use assets (continued)
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below:
Consolidated
Balance at 1 July 2021
Disposals
Depreciation expense
Buildings
Motor vehicles
$
$
Total
$
285,152
168,190
453,342
-
(19,922)
(19,922)
(97,766)
(64,855)
(162,621)
Balance at 30 June 2022
187,386
Additions
Disposals
Exchange differences
Depreciation expense
83,413
53,808
270,799
53,808
(24,302)
(24,302)
2,893
2,893
-
-
-
(97,766)
(57,896)
(155,662)
Balance at 30 June 2023
89,620
57,916
147,536
For other lease related disclosures, refer to:
• note 7 for depreciation, interest and other expenses on right-of-use assets;
• note 14 and note 15 for lease liabilities; and
• consolidated statement of cash flows for repayment of lease liabilities.
Accounting policy for right-of-use assets
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which
comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the
commencement date net of any lease incentives received, any initial direct costs incurred, and, except where included in the cost
of inventories, an estimate of costs expected to be incurred for dismantling and removing the underlying asset, and restoring
the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful
life of the asset, whichever is the shorter. Where the Group expects to obtain ownership of the leased asset at the end of the
lease term, the depreciation is over its estimated useful life. Right-of use assets are subject to impairment or adjusted for any
remeasurement of lease liabilities.
The Group has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases with terms
of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to profit or loss as incurred.
46
Note 13. Current liabilities – trade and other payables
Trade payables
Payroll liabilities
Other payables
Consolidated
2023
$
2022
$
960,166
931,041
98,939
201,266
298,858
328,493
1,357,963
1,460,800
Refer to note 19 for further information on financial instruments.
Accounting policy for trade and other payables
Trade and other payables represent liabilities for goods and services provided to the Group 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, non-interest bearing and are usually paid within 60 days of recognition.
Note 14. Current liabilities – lease liabilities
Lease liability
Refer to note 19 for information on the maturity analysis of lease liabilities.
Note 15. Non-current liabilities – lease liabilities
Lease liability
Refer to note 19 for information on the maturity analysis of lease liabilities.
Accounting policy for lease liabilities
Consolidated
2023
$
2022
$
146,245
165,375
Consolidated
2022
$
2021
$
24,563
138,839
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present value
of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or, if that rate
cannot be readily determined, the Group’s incremental borrowing rate. Lease payments comprise of fixed payments less any lease
incentives receivable, variable lease payments that depend on an index or a rate, amounts expected to be paid under residual
value guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to occur, and any
anticipated termination penalties.
47
Notes to the financial statementsOncoSil Medical Ltd • 30 June 2023 Note 15. Non-current liabilities - lease liabilities (continued)
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured if there
is a change in the following: future lease payments arising from a change in an index or a rate used; residual guarantee; lease
term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an adjustment is made to the
corresponding right-of use asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written down.
Note 16. Equity – issued capital
Ordinary shares – fully paid
1,975,841,132
991,242,262
86,507,329
79,909,727
Consolidated
2023
Shares
2022
Shares
2023
$
2022
$
Movements in ordinary share capital
Details
Balance
Date
Shares
Issue price
$
1 July 2021
797,343,294
Cancellation of employee loan shares
11 August 2021
(5,000,000)
Placement issue of shares
9 May 2022
80,000,000
Rights issue
10 June 2022
65,390,030
Placement issue of shares
14 June 2022
53,508,938
$0.05
$0.05
$0.05
70,397,314
-
4,000,000
3,269,502
2,675,447
(432,536)
Transactions costs
Balance
Shares issued
30 June 2022
991,242,262
79,909,727
24 November 2022
3,000,000
$0.05
150,000
Cancellation of employee loan shares
2 March 2023
(5,000,000)
-
Rights issue and placement of shortfall
11 May 2023
989,242,262
$0.01
6,815,367
Cancellation of employee loan shares
29 June 2023
(2,643,392)
Transactions costs
-
-
(367,765)
Balance
30 June 2023
1,975,841,132
86,507,329
Ordinary shares
Ordinary shares entitle the holder to participate in any dividends declared and any proceeds attributable to shareholders should
the Company be wound up, in proportions that consider both the number of shares held and the extent to which those shares
are paid up. The fully paid ordinary shares have no par value and the Company does not have a limited amount of authorised
capital.
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share
shall have one vote.
48
Note 16. Equity – issued capital (continued)
Share buy-back
There is no current on-market share buy-back.
Capital risk management
The Group’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to
sustain future development of the business. Given the state of the Group’s development there are no formal targets set for
return of capital.
Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt is calculated
as total borrowings less cash and cash equivalents.
The Group is not subject to any financing arrangements covenants or externally imposed capital requirements.
The capital risk management policy has not changed during the year.
Accounting policy for 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.
Note 17. Equity – reserves
Foreign currency reserve
Share-based payments reserve
Options reserve
Foreign currency reserve
Consolidated
2023
$
2022
$
34,768
34,432
4,628,877
4,243,277
3,077,056
-
7,740,701
4,277,709
The reserve is used to recognise exchange differences arising from the translation of the financial statements of foreign operations
to Australian dollars. It is also used to recognise gains and losses on hedges of the net investments in foreign operations.
Share-based payments reserve
The reserve is used to recognise the value of equity benefits provided to: employees and directors as part of their remuneration
under an Employee Share Plan; directors on terms determined by the Board and approved by shareholders; and other parties as
part of their compensation for services.
Options reserve
The reserve is used to recognise the value of options on issue, not granted as a means of a share-based payment.
49
Notes to the financial statementsOncoSil Medical Ltd • 30 June 2023 Movements in reserves
Movements in each class of reserve during the current and previous financial year are set out below:
Consolidated
Foreign
currency
$
Share-based
payments
$
Balance at 1 July 2021
(52,940)
3,649,972
Foreign currency translation
87,372
-
Share-based payments
-
593,305
Balance at 30 June 2022
34,432
4,243,277
Foreign currency translation
Share-based payments expense
Listed options granted
336
-
-
-
385,600
Options
$
-
-
-
-
-
-
Total
$
3,597,032
87,372
593,305
4,277,709
336
385,600
-
3,077,056
3,077,056
Balance at 30 June 2023
34,768
4,628,877
3,077,056
7,740,701
On 17 March 2023, the Company announced a non-renounceable entitlement offer to existing shareholders to subscribe for 1
new share plus 1 free attaching option for every 1 share held at an offer price of $0.01. The options are listed on the ASX and
have an exercise price of $0.03 and expire on 30 April 2027. On 11 May 2023, 989,242,262 shares and listed options were allotted
as a result of the entitlement offer.
For the listed 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
at grant
Share price
date
Exercise
price
Expected
volatility
Dividend
Risk-free
Fair value at
yield
interest rate
grant date
11/05/2023
30/04/2027
0.01
0.03
95%
-
3.39%
0.0045
In addition to the valuation model, the market price of the options on the date of listing ($0.002) was also considered, to arrive
at the final value determined of $0.003.
Note 18. Equity – dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Note 19. Financial instruments
Financial risk management objectives
The Group’s activities expose it to a variety of financial risks: market risk (including foreign currency risk, price risk and interest
rate risk), credit risk and liquidity risk. The Group’s overall risk management program focuses on the unpredictability of financial
markets and seeks to minimise potential adverse effects on the financial performance of the Group. The Group uses different
methods to measure different types of risk to which it is exposed. These methods include sensitivity analysis in the case of
interest rate risk and ageing analysis for credit risk.
Risk management is carried out by senior finance executives (‘finance’) under policies approved by the Board of Directors (‘the
Board’). These policies include identification and analysis of the risk exposure of the Group and appropriate procedures, controls
and risk limits. Finance identifies and evaluates financial risks within the Group’s operating units. Finance reports to the Board
on a monthly basis.
50
Note 19. Financial instruments (continued)
Market risk
Foreign currency risk
The Group is not exposed to significant foreign currency risk.
Price risk
The Group is not exposed to any significant price risk.
Interest rate risk
The Group’s main interest rate risk arises from cash at bank and short-term deposits. The policy is to maintain a mix of fixed and
floating rate deposits.
The carrying value of the Group’s cash and cash equivalents at the reporting date, subject to interest rate risk. The effect a 100
(2022: 100) basis point interest rate change is detailed below. The method used to arrive at the possible change in basis points
was based on the analysis of the average change of the Reserve Bank of Australia (‘RBA’) monthly issued cash rate over the past
five years.
Basis points increase
Basis points decrease
Basis
points
change
Effect
Effect on
Basis points
Effect
Effect on
on profit
before tax
equity
change
on profit
before tax
equity
Consolidated – 2023
Cash and cash equivalents
100
93,939
70,454
(100)
(93,939)
(70,454)
Basis points increase
Basis points decrease
Basis
points
change
Effect
Effect on
Basis points
Effect
Effect on
on profit
before tax
equity
change
on profit
before tax
equity
Consolidated – 2022
Cash and cash equivalents
100
112,798
84,599
(100)
(112,798)
(84,599)
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the
Group. The Group has a strict code of credit, including obtaining agency credit information, confirming references and setting
appropriate credit limits. The Group obtains guarantees where appropriate to mitigate credit risk. The maximum exposure to
credit risk at the reporting date to recognised financial assets is the carrying amount, net of any provisions for impairment of
those assets, as disclosed in the statement of financial position and notes to the financial statements. The Group does not hold
any collateral.
The credit risk on liquid funds is limited because the counter party is a bank with high credit rating.
Liquidity risk
Vigilant liquidity risk management requires the Group to maintain sufficient liquid assets (mainly cash and cash equivalents) to
be able to pay debts as and when they become due and payable.
The Group manages liquidity risk by maintaining adequate cash reserves by continuously monitoring actual and forecast cash
flows and matching the maturity profiles of financial assets and liabilities.
51
Notes to the financial statementsOncoSil Medical Ltd • 30 June 2023 Note 19. Financial instruments (continued)
The Group’s objective is to maintain a balance between continuity of funding and flexibility through the use of finance leases
and equity funding.
Remaining contractual maturities
The following tables detail the Group’s remaining contractual maturity for its financial instrument liabilities. The tables have
been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the financial
liabilities are required to be paid. The tables include both interest and principal cash flows disclosed as remaining contractual
maturities and therefore these totals may differ from their carrying amount in the statement of financial position.
Weighted
Remaining
average
1 year or
Between 1
Between 2
Over 5
contractual
and 2 years
and 5 years
years
maturities
Consolidated – 2023
Non-derivatives
Non-interest bearing
Trade payables
Payroll liabilities
Other payables
interest rate
%
less
$
-
-
-
960,166
98,939
298,858
Interest-bearing – variable
Lease liability
5.00%
146,245
19,876
Total non-derivatives
1,504,208
19,876
Weighted
Consolidated – 2022
Non-derivatives
Non-interest bearing
Trade payables
Payroll liabilities
Other payables
interest rate
%
less
$
-
-
-
931,041
201,266
328,493
Interest-bearing – variable
Lease liability
5.00%
165,375
138,839
Total non-derivatives
1,626,175
138,839
$
-
-
-
$
-
-
-
$
-
-
-
4,687
4,687
$
$
-
-
-
-
-
960,166
98,939
298,858
170,808
1,528,77
Remaining
$
$
$
-
-
-
-
-
-
-
-
-
-
931,041
201,266
328,493
304,214
1,765,014
average
1 year or
Between 1
Between 2
Over 5
contractual
and 2 years
and 5 years
years
maturities
The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed above.
Fair value of financial instruments
Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value.
52
Note 20. Key management personnel disclosures
Compensation
The aggregate compensation made to directors and other members of KMP of the Group is set out below:
Short-term employee benefits
Post-employment benefits
Share-based payments
Consolidated
2023
$
901,426
45,167
356,463
2022
$
942,164
44,654
253,711
1,303,056
1,240,529
Note 21. Remuneration of auditors
During the financial year the following fees were paid or payable for services provided by Crowe Sydney, the auditor of the Company:
Consolidated
2023
$
2022
$
Audit services – Crowe Sydney
Audit or review of the financial statements
63,473
60,450
Note 22. Contingent liabilities
There has been no change in the status of contingent liabilities since 30 June 2022.
On 16 April 2013, OncoSil Medical Ltd settled the acquisition of OncoSil Medical (UK) Limited (formerly Enigma Therapeutics
Limited “OncoSil UK”). OncoSil UK holds a licence to commercialise OncoSil™ (formerly BrachySil™), a targeted brachytherapy
product for the treatment of cancer (‘the Product’) under a licence agreement from pSiMedica.
pSiMedica has granted to OncoSil UK an exclusive world-wide royalty-bearing license for the term of the pSiMedica Transaction
(with limited rights to sub-license) under the Licensed Patents solely to make, use, sell, offer to sell and import the Product in the
field of therapy in human neoplastic disease (cancer). Key terms of the license agreement have been summarised below:
• OncoSil UK is required to make a payment of up to US$100,000 to pSiMedica annually to support existing patents; and
• OncoSil UK is required to make the following payments for patents and subject to the Product completing positive clinical
trials and becoming registered for sale.
i. During the term of the licence, 8% of future net sales (future sales which cannot be guaranteed) of the Product or any
other product protected by the rights arising from the Assigned Patents (if sold by OncoSil UK or its affiliates) and services
performed using the Product or such other products, on a product-by-product and country-by-country basis. Only half of
this payment must be made whenever approved generic competitor products derived from the Product maintain at least a
20% world-wide market share of sales, on a country-by-country and product-by-product basis.
53
Notes to the financial statementsOncoSil Medical Ltd • 30 June 2023 Note 22. Contingent liabilities (continued)
ii. 20% of any form of consideration, payments, royalties, third-party net sales income and other payments received from
third party licensing deals and various other agreements with third parties in relation to the Product or any other product
protected by the rights arising from the Assigned Patents, for the term of the pSiMedica licence, on a product-by-product
and country-by-country basis.
iii. Potential milestone payments based only upon the Product being a commercial success, which cannot be guaranteed now
or in the future (ranging from US$1,000,000 to US$5,000,000) upon:
• OncoSil UK, its affiliates and any of OncoSil UK’s third-party transferees together potentially achieving US$5,000,000
aggregate net sales of the Product and any other product protected by the rights arising from the Assigned Patents, for
(i) an indication and (ii) a second indication;
• aggregate net sales of the Product and any other product protected by the rights arising from the Assigned Patents,
paid to OncoSil UK, its affiliates and third-party transferees in a calendar year of US$20,000,000 or more; and
• aggregate net sales of the Product and any other product protected by the rights arising from the Assigned Patents,
paid to OncoSil UK, its affiliates and third-party transferees in a calendar year of US$100,000,000 or more.
The existence of the obligations will be confirmed only by the occurrence of one or more uncertain future events not wholly
within the control of the Group.
Termination of licence agreement
Unless terminated early for reasons such as a material breach, or by pSiMedica due to a patent challenge being brought against
pSiMedica in certain circumstances (including by OncoSil UK), the term of the licence for the Licensed Patents and OncoSil UK’s
rights to exploit the product and any other products arising from the Assigned Patents, remain in effect on a country-by-country
and product-by-product basis, until the later to occur of:
• the date on which the product or any other product protected by the rights arising from the Assigned Patents in such country
is no longer covered or protected by a potential claim of the Licensed Patents or the Assigned Patents in such country; and
• ten years from the date of first commercial sale of a product or any other product protected by the rights arising from the
Assigned Patents in such country.
In addition, if OncoSil UK reasonably forms the view that it is not capable of commercialising OncoSil™, OncoSil UK shall have the
right to terminate the license agreement by giving 60 days prior written notice to pSiMedica.
The directors are not aware of any other commitments or contingencies as at 30 June 2023.
Note 23. Related party transactions
Parent entity
OncoSil Medical Ltd is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in note 25.
Key management personnel
Disclosures relating to key management personnel are set out in note 20 and the remuneration report included in the directors’ report.
Transactions with related parties
Payment of Director’s fees to Dr Chris Roberts AO, were made to his director-related entity, Robertsplan Pty Ltd during the
financial year of $Nil (2022: $30,163).
Payment of Director’s fees to Mr Michael Bassett, were made to his director-related entity, Market Connect Australia Pty Ltd
during the financial year of $Nil (2022: $24,086).
54
Note 23. Related party transactions (continued)
Payment of Director’s fees to Prof. Ricky Sharma, were made to his director-related entity, Professor Sharma Consultancy
Limited during the financial year of $60,213 (2022: $53,178).
Receivable from and payable to related parties
There were no trade receivables from or trade payables to related parties at the current and previous reporting date.
Loans to/from related parties
There were no loans to or from related parties at the current and previous reporting date.
Terms and conditions
All transactions were made on normal commercial terms and conditions and at market rates.
Note 24. Parent entity information
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
Loss after income tax
Total comprehensive income
Statement of financial position
Total current assets
Total assets
Total current liabilities
Total liabilities
Equity
Issued capital
Share-based payments reserve
Options reserve
Accumulated losses
Total equity
55
Parent
2023
$
2022
$
(11,852,014)
(15,199,711)
(11,852,014)
(15,199,711)
Parent
2023
$
2022
$
10,872,685
12,863,313
10,949,633
12,898,506
1,255,544
1,412,660
1,255,544
1,412,660
86,506,308
79,908,706
4,628,876
4,243,277
3,077,056
-
(84,518,151)
(72,666,137)
9,694,089
20,485,846
Notes to the financial statementsOncoSil Medical Ltd • 30 June 2023 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 2023 and 30 June 2022.
Contingent liabilities
The parent entity had no contingent liabilities as at 30 June 2023 and 30 June 2022.
Capital commitments – Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2023 and 30 June 2022.
Significant accounting policies
The accounting policies of the parent entity are consistent with those of the Group, 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.
Note 25. Interests in subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance
with the accounting policy described in note 2:
Name
Principal place of business /
Country of incorporation
OncoSil Medical UK Limited
United Kingdom
OncoSil Medical Europe GmbH
Germany
OncoSil Medical US Inc.
OncoSil Medical NZ Limited
United States
New Zealand
OncoSil Medical Singapore Pte. Ltd
Singapore
OncoSil Medical España SL
Spain
Ownership interest
2023
%
100%
100%
100%
100%
100%
100%
2022
%
100%
100%
100%
100%
100%
100%
56
Note 26. Reconciliation of loss after income tax to net cash used in operating activities
Loss after income tax expense for the year
(11,342,926)
(10,726,703)
Consolidated
2023
$
2022
$
Adjustments for:
Depreciation and amortisation
Share-based payments
Foreign exchange differences
Change in operating assets and liabilities:
Increase in trade receivables
Decrease/(increase) in other operating assets
Decrease in trade and other payables
Decrease in employee benefits
175,889
191,763
385,600
593,305
(2,557)
87,372
(377,938)
273,706
1,528
(358,569)
(78,535)
(74,306)
(76,695)
(96,746)
Net cash used in operating activities
(11,315,634)
(10,110,178)
Note 27. Changes in liabilities arising from financing activities
Consolidated
Balance at 1 July 2021
Net cash used in financing activities
Release of lease assets
Balance at 30 June 2022
Net cash used in financing activities
Acquisition of buildings - right-of-use by means of leases
Balance at 30 June 2023
Lease liability
$
484,365
(160,229)
(19,922)
304,214
(187,214)
53,808
170,808
57
Notes to the financial statementsOncoSil Medical Ltd • 30 June 2023 Note 28. Earnings per share
Consolidated
2023
$
2022
$
Loss after income tax attributable to the owners of OncoSil Medical Ltd
(11,342,926)
(10,726,703)
Weighted average number of ordinary shares used in calculating basic earnings per share
1,129,593,135
810,775,740
Weighted average number of ordinary shares used in calculating diluted earnings per share
1,129,593,135
810,775,740
Number
Number
Basic earnings per share
Diluted earnings per share
Cents
(1.00)
(1.00)
Cents
(1.32)
(1.32)
9,526,990 performance dependent loan shares, 17,235,476 performance rights and 12,459,854 options under the Group’s
Employee Share Plan and 989,242,262 listed options have not been included in the diluted earnings per share calculation as they
are anti-dilutive.
Accounting policy for earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of OncoSil Medical Ltd, excluding any
costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the
financial year, adjusted for bonus elements in ordinary shares issued during the financial year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the
after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted
average number of additional ordinary shares that would have been outstanding assuming conversion of all dilutive potential
ordinary shares.
Note 29. Share-based payments
Grant of performance dependent loan shares
The Group’s Employee Share Plan (‘ESP’) is designed as an incentive for senior managers and above. Under the plan, participants
are granted performance dependent loan shares which only vest if certain performance standards are met. The issue price is
fully financed by a limited recourse loan provided by the Group. Dividends are for the benefit of the employee. Employees are
not permitted to deal in the shares until the limited recourse loan has been repaid. Performance dependent loan shares issued
under the ESP are accounted for in a similar manner as options. There are no cash settlement alternatives.
58
Note 29. Share-based payments (continued)
The following unvested performance dependent loan shares were on issue under the ESP at reporting date and held as security
against limited recourse loan arrangements:
2023
Grant date
Expiry date
Exercise
price
Balance at
Expired/
Balance at
the start of
Granted
Vested
forfeited/
the end of
the year
other *
the year
11/12/2017
11/12/2022
$0.22
769,231
02/03/2018
02/03/2023
$0.22
4,230,769
31/10/2018
31/10/2023
$0.18
975,000
31/10/2018
31/10/2023
$0.18
975,000
25/03/2020
25/03/2025
$0.10
1,069,763
25/03/2020
25/03/2025
$0.10
1,069,761
05/11/2020
05/11/2025
$0.13
8,080,858
17,170,382
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(769,231)
(4,230,769)
-
-
(325,000)
650,000
(325,000)
650,000
(371,232)
698,531
(371,231)
698,530
(1,250,929)
6,829,929
(7,643,392)
9,526,990
Weighted average exercise price
$0.15
$0.00
$0.00
$0.19
$0.13
* During the year 7,643,392 performance dependent loan shares were forfeited due to vesting conditions not being met.
2022
Grant date
Expiry date
Exercise
price
Balance at
the start of
Granted
Vested
the year
Expired/
forfeited/
other *
Balance at
the end of
the year
12/08/2016
11/08/2021
$0.22
4,000,000
11/12/2017
11/12/2022
$0.22
769,231
02/03/2018
02/03/2023
$0.22
4,230,769
02/03/2018
11/08/2021
$0.22
1,000,000
31/10/2018
31/10/2023
$0.18
975,000
31/10/2018
31/10/2023
$0.18
975,000
25/03/2020
25/03/2025
$0.10
1,069,763
25/03/2020
25/03/2025
$0.10
1,069,761
05/11/2020
05/11/2025
$0.13
8,080,858
22,170,382
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(4,000,000)
-
-
-
769,231
4,230,769
(1,000,000)
-
-
-
-
-
-
975,000
975,000
1,069,763
1,069,761
8,080,858
(5,000,000)
17,170,382
Weighted average exercise price
$0.17
$0.00
$0.00
$0.22
$0.15
* During the prior year 5,000,000 performance dependent loan shares were forfeited due to vesting conditions not being met.
59
Notes to the financial statementsOncoSil Medical Ltd • 30 June 2023 Note 29. Share-based payments (continued)
Terms of limited recourse loan arrangement
The loans issued are limited recourse such that on the repayment date the repayment obligation under the loan will be limited
to the lesser of:
• (a) the outstanding balance of the loan; and
• (b) the market value of the loan shares on that date.
In addition, where the participant has elected for the performance dependent loan shares to be provided to the Company in full
satisfaction of the loan, the Company must accept the loan shares as full settlement of the repayment obligation under the loan.
The total value of loans outstanding under the Employee Share Plan at reporting date was $1,278,563 (2022: $2,733,834).
The weighted average remaining contractual life of loan shares outstanding at the end of the financial year was 23 months (2022:
27 months).
Grant of performance rights
At the 2021 Annual General Meeting held on 19 October 2021, shareholders approved the Group’s Omnibus Incentive Plan and
is designed as an incentive for senior managers and above. Performance rights vest automatically if an when the OncoSil Total
Shareholder Return (TSR) achieves hurdle compound annual growth rate (CAGR) rates. Fair value is independently determined
using the Monte-Carlo option pricing model that takes into account the exercise price, the term of the option, the share price at
grant date and the expected volatility of the underlying share and the risk-free interest rate for the term of the option.
Set out below are summaries of performance rights granted under the plan:
2023
Grant date
Expiry date
Exercise
Balance at
Granted
Exercised
Expired/
Balance at
price
the start of
the year
20/10/2021
20/10/2025
$0.00
10,987,347
-
25/10/2022
25/10/2026
$0.00
-
12,032,819
10,987,347
12,032,819
forfeited/
the end of
other
the year
(3,411,671)
7,575,676
(2,373,019)
9,659,800
(5,784,690)
17,235,476
-
-
-
2022
Grant date
Expiry date
Exercise
Balance at
Granted
Exercised
Expired/
Balance at
price
the start of
the year
forfeited/
the end of
other
the year
20/10/2021
20/10/2025
$0.00
-
-
10,987,347
10,987,347
-
-
-
-
10,987,347
10,987,347
60
Note 29. Share-based payments (continued)
For the performance rights 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
price at
grant date
Share
Exercise
Expected
Dividend
Risk free
Fair value at
price
volatilty
yield
interest rate
grant date
25/10/2022
25/10/2026
$0.05
$0.00
75.40%
-
3.54%
$0.033
For the performance rights issued on 20 October 2021, performance rights vest automatically if and when the OncoSil Total
Shareholder Return (TSR) achieves a compound annual growth rate (CAGR) based on the following table:
TSR CAGR Performance
30-day VWAP share price hurdle
on 30 June 2025
Performance rights that Vest (%)
< 20%
20% (threshold performance)
< $0.0532
$0.0532
0%
50%
> 20% and < 40%
Between $0.0532 and $0.0621
Straight-line vesting between 50% and 100%
40% or more (stretch)
> $0.0621
100%
There are no exercisable performance dependant loan shares and performance rights as at 30 June 2023 and 2022, as they have
not vested.
Grant of options
Options were granted to the Non-Executive Chairman and Non-Executive Directors as approved by shareholders at the 2022
Annual General Meeting, held on 25 October 2022. The options are issued for nil consideration and will vest 3 years from the
grant date subject to remaining as a Director of the Company over the vesting period.
Set out below are summaries of options granted under the plan:
2023
Grant date
Expiry date
Exercise
price
Balance at
Expired/
Balance at
the start of
Granted
Exercised
forfeited/
the end of
the year
other
the year
25/10/2022
25/10/2027
$0.12
-
16,000,000
-
(3,540,146)
12,459,854
The weighted average remaining contractual life of options outstanding at the end of the financial year was 4.33 years.
For the options granted during the current financial year, the valuation model inputs used to determine the fair value at the
grant date, are as follows:
Grant date
Expiry date
at grant
Share price
date
Exercise
price
Expected
volatility
Dividend
Risk-free
Fair value at
yield
interest rate
grant date
25/10/2022
25/10/2027
0.05
0.12
104.85%
-
3.73%
0.033
61
Notes to the financial statementsOncoSil Medical Ltd • 30 June 2023 Accounting policy for share-based payments:
Equity-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.
The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity
instruments at the date at which they are granted. The fair value is determined by using the Black-Scholes, Binomial or
Monte-Carlo models, taking into account the terms and conditions upon which the instruments were granted. Share-based
payment transactions in prior years were valued using the Black-Scholes and Monte-Carlo models. 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 of equity.
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.
Market conditions are taken into consideration in determining fair value. Therefore any awards subject to market conditions are
considered to vest irrespective of whether or not that market condition has been met, provided all other conditions are satisfied.
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been made. An
additional expense is recognised, over the remaining vesting period, for any modification that increases the total fair value of
the share-based compensation benefit as at the date of modification.
If the non-vesting condition is within the control of the Group or employee, the failure to satisfy the condition is treated as a
cancellation. If the condition is not within the control of the Group 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, they are treated as if they had 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.
Note 30. Events after the reporting period
The Company announced changes to its board after the reporting period, namely:
On 14 July 2023, Mr Gabriel Liberatore was appointed to the Board as a Non-Executive Director.
On 7 August 2023, Mr Douglas Cubbin was appointed to the Board as a Non-Executive Director and will assume the position of
elected Chairperson from 31 August 2023 onwards.
On 31 August 2023, Mr Otto Buttula retired as Chairperson of the Board.
No other matter or circumstance has arisen since 30 June 2023 that has significantly affected, or may significantly affect the
Group’s operations, the results of those operations, or the Group’s state of affairs in future financial years.
62
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 Group’s financial position as at 30 June 2023 and
of its performance for the financial year ended on that date; and
• there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due
and payable.
The directors have been given the 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
Signed __________________________________________________
Mr Otto Buttula
Non-Executive Chairman
31 August 2023
Sydney
63
Crowe Sydney
ABN 97 895 683 573
Level 24, 1 O’Connell Street
Sydney NSW 2000
Main +61 (02) 9262 2155
Fax +61 (02) 9262 2190
www.crowe.com.au
Independent Auditor’s Report to the Members of
OncoSil Medical Ltd
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of OncoSil Medical Ltd (the Company) and its subsidiaries (the
Group), which comprises the consolidated statement of financial position as at 30 June 2023, 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 the directors’ declaration.
In our opinion, the accompanying financial report of Group is in accordance with the Corporations Act
2001, including:
(a) giving a true and fair view of the Group’s financial position as at 30 June 2023 and of its financial
performance for the year then ended;
(b) and complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Report section of our report. We are independent of the Group in accordance with the 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.
Some of the Crowe personnel involved in preparing this document may be members of a professional scheme approved under Professional
Standards Legislation such that their occupational liability is limited under that Legislation. To the extent that applies, the following disclaimer
applies to them. If you have any questions about the applicability of Professional Standards Legislation Crowe’s personnel involved in preparing
this document, please speak to your Crowe adviser.
Liability limited by a scheme approved under Professional Standards Legislation.
The title ‘Partner’ conveys that the person is a senior member within their respective division, and is among the group of persons who hold an
equity interest (shareholder) in its parent entity, Findex Group Limited. The only professional service offering which is conducted by a partnership
is external audit, conducted via the Crowe Australasia external audit division and Unison SMSF Audit. All other professional services offered by
Findex Group Limited are conducted by a privately owned organisation and/or its subsidiaries.
Findex (Aust) Pty Ltd, trading as Crowe Australasia is a member of Crowe Global, a Swiss verein. Each member firm of Crowe Global is a
separate and independent legal entity. Findex (Aust) Pty Ltd and its affiliates are not responsible or liable for any acts or omissions of Crowe
Global or any other member of Crowe Global. Crowe Global does not render any professional services and does not have an ownership or
partnership interest in Findex (Aust) Pty Ltd. Services are provided by Crowe Sydney, an affiliate of Findex (Aust) Pty Ltd
© 2023 Findex (Aust) Pty Ltd
Independent Auditor’s Report
OncoSil Medical Ltd
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.
Key Audit Matter
How we addressed the Key Audit Matter
Research and Development Tax Incentive
Refer to Note 2, Note 3, Note 6 and Note 10
Under the research and development (R&D) tax
incentive scheme, the Group is entitled to receive a
43.5% refundable tax offset of eligible expenditure if
its turnover is less than $20 million per annum,
provided it is not controlled by an income tax exempt
entity.
The R&D plan is filed with AusIndustry in the
following financial year, and based on this filing, the
Group receives the incentive in cash. The Group
prepared an estimate of its total R&D expenditure to
determine the potential claim under the R&D tax
incentive legislation.
As at 30 June 2023, the Group had an estimated
claim of $1,099,744 relating to the year ended 30
June 2023.
The R&D tax incentive is a key audit matter due to
the size of the balance and because interpretation of
the R&D tax legislation is required by the Group to
assess the eligibility of the R&D expenditure under
the scheme.
Going Concern Assessment
Refer to Note 2
The Group incurred a loss of $11,342,926 (2022:
$10,639,331) and net cash used in operating
activities was $11,315,634 (2022: $10,110,178).
Notwithstanding the continued losses and operating
cash outflows, the financial statements have been
prepared on a going concern basis based on the
actions undertaken by management as outlined in
Note 2 Going Concern in the financial report.
We performed the following key procedures:
• Agreed the estimate made in previous year to
the amount of cash received after lodgement of
the R&D tax claim.
• Compared the nature of R&D expenditure
included in the current year estimate to the
prior year estimate.
Tested a sample of R&D expenses for eligibility
under the R&D Tax Incentive scheme.
•
• Compared the amount of eligible expenditures
•
used to calculate the estimate to the
expenditure recorded in the general ledger.
Inspected copies of relevant documents lodged
with AusIndustry and the ATO related to
historic claims.
• Reviewed the related financial statement
disclosures.
We critically analysed the Group’s cashflow forecast
that was used to support the going concern
assessment, including performing the following
procedures:
• Compared costs in the forecast prepared by
management with the actual cashflows for
FY2023 and obtained justification from
management on variances in order to evaluate
the validity of management’s forecasting
processes.
Interrogated the cashflow and performed a
sensitivity analysis over the forecasted revenue
and costs.
•
• Discussed with management the significant
assumptions and reviewed supporting
documentation for inputs used in the cashflow
forecast.
• Reviewed post balance date performance of
the entity up to the date of signing the audit
report to determine if the business performance
was consistent with management’s
expectations.
© 2023 Findex (Aust) Pty Ltd
www.crowe.com.au
Independent Auditor’s Report
OncoSil Medical Ltd
Other Information
The directors are responsible for the other information. The other information comprises the
information included in the Group’s annual report for the year ended 30 June 2023, but does not
include the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly 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 have 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.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgement and maintain professional scepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the financial report, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Group’s ability to continue as a going
concern.
© 2023 Findex (Aust) Pty Ltd
www.crowe.com.au
Independent Auditor’s Report
OncoSil Medical Ltd
If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor’s report to the related disclosures in the financial report or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up
to the date of our auditor’s report. However, future events or conditions may cause the Group to
cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and events
in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the group financial report. The
auditor is responsible for the direction, supervision and performance of the group audit. The
auditor remains solely responsible for the audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during the audit.
We also provide the directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, actions
taken to eliminate threats or safeguards applied.
From the matters communicated with the directors, we determine those matters that were of most
significance in the audit of the financial report of the current period and are therefore the key audit
matters. We describe these matters in the auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in the auditor’s report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest benefits of such communication.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the remuneration report included in the directors’ report from pages 16 to 26 of the
annual report for the year ended 30 June 2023.
In our opinion, the remuneration report of OncoSil Medical Ltd., for the year ended 30 June 2023,
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.
Crowe Sydney
Barbara Richmond
Partner
31 August 2023
Sydney
© 2023 Findex (Aust) Pty Ltd
www.crowe.com.au
Shareholder information
The shareholder information set out below was applicable as at 23 August 2023.
Distribution of equitable securities
Analysis of number of equitable security holders by size of holding:
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and over
Holding less than a marketable parcel
Ordinary shares
Options
Number
% of total
Number
% of total
of holders
shares issued
of holders
shares issued
153
356
550
2,227
1,422
4,708
2,482
-
0.07
0.23
4.59
95.11
100.00
-
1
24
60
339
514
938
499
-
-
-
2.00
98.00
100.00
-
68
Shareholder information
Equity security holders
Twenty largest quoted equity security holders - ordinary shares
Ordinary shares
The names of the twenty largest security holders of quoted equity securities
Number held
% of total
are listed below:
MRS SARAH CAMERON
ALUA CAPITAL PTY LTD
BANNABY INVESTMENTS PTY LIMITED
PETER KYROS PTY LTD KYROS SF A/C>
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
CITICORP NOMINEES PTY LIMITED
MYCONSULTING PTY LTD
MR GREGORY JOSEPH HARRIS
NEWFOUND INVESTMENTS PTY LTD
SUNSET CAPITAL MANAGEMENT PTY LTD
NETWEALTH INVESTMENTS LIMITED
TISIA NOMINEES PTY LTD
JK NOMINEES PTY LTD
THE TRUST COMPANY (AUSTRALIA) LIMITED
CABLETIME PTY LTD
ROJO NERO CAPITAL PTY LTD
ROGERS SF MANAGEMENT PTY LTD
ARDROY SECURITIES PTY LTD
MR PETER BARRETT CAPP
MWCD PTY LTD
shares issued
6.01
2.41
2.33
2.26
1.93
1.77
1.72
1.67
1.64
1.47
1.38
1.31
1.27
1.16
1.14
0.98
0.97
0.82
0.76
0.74
33.74
118,661,215
47,653,847
46,000,000
44,656,780
38,076,479
35,052,240
34,000,000
32,999,930
32,307,694
29,000,000
27,228,094
25,845,965
25,000,000
23,000,000
22,553,848
19,360,127
19,089,355
16,114,819
15,000,000
14,553,100
666,153,493
69
Shareholder information
Twenty largest quoted equity security holders - options
Options over ordinary shares
The names of the twenty largest security holders of quoted equity securities
Number held
% of total
are listed below:
options issued
MRS SARAH CAMERON
MR PETER ANDREW PROKSA
BANNABY INVESTMENTS PTY LIMITED
JK NOMINEES PTY LTD
PETER KYROS PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
TISIA NOMINEES PTY LTD
MS JENNIFER ANNE CIRO
SUNSET CAPITAL MANAGEMENT PTY LTD
MS SIHOL MARITO GULTOM
MR GREGORY JOSEPH HARRIS
MYCONSULTING PTY LTD
ROGERS SF MANAGEMENT PTY LTD
ALUA NOMINEES PTY LTD
HARSHELL INVESTMENTS PTY LTD
CITICORP NOMINEES PTY LIMITED
CABLETIME PTY LTD
TETS PTY LTD
THE ELECTRIC BICYCLE CO PTY LTD
GEYSKULL NOMINEES PTY LTD
GIOKIR PTY LTD
118,661,215
11.99
41,000,000
35,000,000
25,000,000
24,960,000
23,475,557
23,120,251
22,000,000
22,000,000
21,000,000
16,499,965
15,100,000
15,000,000
15,000,000
13,000,000
12,478,212
11,276,924
10,000,000
10,000,000
10,000,000
10,000,000
494,572,124
4.14
3.53
2.52
2.52
2.37
2.33
2.22
2.22
2.12
1.66
1.52
1.51
1.51
1.31
1.26
1.13
1.01
1.01
1.01
1.01
49.90
70
Shareholder information
Unquoted equity securities
Options over ordinary shares issued
Performance rights over ordinary shares issued
The following persons hold 20% or more of unquoted equity securities:
Name
Mr Otto Buttula
Mr Brian Leedman
Substantial holders
Substantial holders in the Company are set out below:
MRS SARAH CAMERON
Voting rights
The voting rights attached to ordinary shares are set out below:
Ordinary shares
Number
on issue
Number
of holders
12,459,854
17,235,476
3
13
Class
Options
Options
Number held
8,000,000
4,000,000
Ordinary shares
Number held
% of total
shares issued
118,661,215
6.01
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share
shall have one vote.
There are no other classes of equity securities.
71
2023
Annual Report
oncosil.com