Revolutionising cancer treatment
ANNUAL REPORT 2021
Contents
Letter from the Chairman
Patrys people
Patrys snapshot
Pipeline & milestones
Intellectual property
A closer look at Patrys’ research
JCI research feature
Patrys newspaper feature
Building Patrys’ deoxymab pipeline
Antibodies come of age
Commercial interest in cancer
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
2
4
6
8
9
10
12
13
14
16
18
20
37
38
39
40
41
42
66
Independent auditor’s report to the members of Patrys Limited
67
Shareholder information
Corporate directory
Corporate and social responsibility
70
74
75
1
From the Chairman
Resolute focus in unprecedented times
To our valued shareholders and supporters,
In a period of profound international upheaval, Patrys has remained focused on developing multiple opportunities for our
unique deoxymab platform technology to provide better therapeutic outcomes for patients with cancer.
Our global team has remained determined to enhance Patrys’ deoxymab pipeline throughout the COVID‑19 pandemic.
The immediate objective is to get our lead asset PAT‑DX1 to the clinic.
Our progress during the year in review has been independently endorsed in part through the publication in late FY21 of
critical new data in the peer‑reviewed ‘Journal of Clinical Investigation ‑ Insight’. These studies showed that the PAT‑DX1
antibody can cross the blood-brain barrier (BBB) and inhibit the growth of both primary brain cancers and cancer
metastases located in the brain. Other studies showed that the full‑sized IgG deoxymab antibody, PAT‑DX3, is also able to
cross the BBB. PAT‑DX3, which Patrys added to its portfolio in September 2020, is proving to be an immensely valuable
addition. Pharmacokinetic studies conducted during the year showed that it has a different pharmacokinetic profile to
PAT‑DX1, potentially opening up new clinical opportunities for Patrys’ deoxymab antibody platform.
The unique properties that our deoxymab antibodies have demonstrated in multiple studies remains a key point of
difference and a value driver for Patrys. It is encouraging that our progress has translated into high quality media and
investor analyst coverage of the Company throughout the year.
From a corporate perspective, Patrys strengthened its balance sheet with two capital raises for a total of $11.7M before
costs ($4.3M in August and $7.4M in November and December). This has provided Patrys with the financial capacity to
support the manufacture of the clinical-grade antibody required to complete all remaining preclinical toxicology studies
and initiate the first human clinical trial of PAT‑DX1.
Patrys also made further additions to its patent estate during the year and now has an extensive portfolio of patents filed
in major commercial markets including 13 patent families, covering 7 granted and 32 pending applications. Patrys has
exclusive, worldwide rights for the use of deoxymabs in cancer and humanised versions for therapeutic development too.
With demonstrated capacity to enter cells and target DNA damage repair (DDR), we truly believe our technology has the
potential to offer new, effective therapeutic options in the fight against cancer.
I would like to personally thank our shareholders, the entire Patrys team, and our dedicated networks of commercial,
clinical, and academic partners – with your continued support Patrys has a promising year ahead.
John Read
Patrys Chairman
2
“Patrys is in the midst of an exciting period of
development. We are resolutely focused on
execution, in preparation for the first clinical trial
program for our deoxymab platform.”
- Patrys Chairman, John Read
1
3
Our people
Patrys has attracted a multidisciplinary team, inclusive of global leaders in research, development, and innovation ‑ all deeply
motivated to progress the development of novel cancer treatments.
Board of Directors
John Read, BSc (Hons), MBA, FAICD
Chairman
Mr. Read is an experienced Chairman and Director in public, private and government organisations.
Through his extensive career in venture capital, private equity and commercialisation, he has gained
a depth of experience in the formation and growth of emerging companies with an emphasis on
commercial entities that provide broad societal benefits.
James Campbell, BSc (Hons), PhD, MBA, GAICD
Managing Director & Chief Executive Officer
Dr. Campbell has more than 20 years of international biotechnology research, management and
leadership experience and has been involved in the creation and/or transformation of multiple
successful Australian and international biotechnology companies.
Michael Stork, BBA
Non-Executive Director
Mr. Stork is the Managing Director of Stork Holdings Ltd, an Investment Holding company active
in the Canadian technology startup sector. Mr. Stork is the Chairman of the Waterloo Accelerator
Centre, a technology company incubator affiliated with the University of Waterloo. He is active on
the Boards of a number of leading Canadian technology startup companies.
Suzy Jones
Non-Executive Director
Ms. Jones is Founder and Managing Partner of DNA Ink LLC, a life sciences advisory firm in San
Francisco with clients in the United States and Europe. Ms. Jones has very extensive networks within
the pharmaceutical and biotech companies and VC community in North America.
Pamela M Klein, BSc, MD
Non-Executive Director
Dr. Pamela M. Klein completed her medical training at Stritch School of Medicine, Loyola University
in Chicago, followed by internal medicine training at Cedars‑Sinai, Los Angeles, prior to spending
seven years working at the U.S. National Cancer Institute. Currently, Dr. Klein currently serves as an
advisor to a range of different biotech and investment companies, with roles on Scientific Advisory
Boards and Corporate Boards as well as broader advisory roles.
4
Scientific Advisory Board
Our scientific advisors are globally sought‑after professionals, offering specialist expertise to support the development and
commercialisation of novel medical treatments.
Allen Ebens, BSc, PhD
Dr Allen Ebens completed a PhD at UCLA and Post‑doctoral training at UCSF. Over 20 years his
distinguished career has seen significant contributions to the scientific literature as well as
advancement of multiple discovery projects to clinical development at companies including
Exelixis, Genentech and Juno Therapeutics.
Peter Ordentlich, BSc, PhD
Dr Peter Ordentlich completed a PhD in Immunology at the University of Pennsylvania and a
Post‑Doc at the Salk Institute for Biological Studies. He worked at X‑Ceptor Therapeutics, which
was acquired by Exelixis in 2004, then in 2005 co‑founded Syndax Pharmaceuticals, a NASDAQ‑
listed, clinical stage biopharmaceutical company developing an innovative pipeline of cancer
therapies with three clinical stage assets.
Management team
Our Management Team are highly capable professionals with a cross‑section of skills and experience targeted to our needs.
Melanie Leydin, B Bus (Acc. Corp. Law)
Company Secretary
Melanie Leydin holds a Bachelor of Business majoring in Accounting and Corporate Law. She is
a member of the Institute of Chartered Accountants and is a Registered Company Auditor. She
graduated from Swinburne University in 1997, became a Chartered Accountant in 1999 and since
February 2000 has been the principal of chartered accounting firm, Leydin Freyer.
Deanne Greenwood, BSc (Hons), PhD, MBA, GAICD
Vice President Business Development & Intellectual Property
Dr. Greenwood’s efforts are focused on commericalisation of the Company’s assets and
management of the extensive intellectual property portfolio. Dr. Greenwood has worked in the
health and life science sector for the last 13 years. She has extensive experience related to R&D drug
development, relationship management, contracts, grants and industry partnerships.
Valentina Dubljevic, BSc, MBB, GAICD
Vice President Scientific & Clinical Development
Ms. Dubljevic is responsible for the pre‑clinical and clinical development of Patrys’ products. Ms.
Dubljevic brings more than 20 years of scientific and commercial experience in the areas of anti‑
cancer therapies, vaccine development and diagnostics.
5
Patrys snapshot
Improving lives
Patrys’ mission is to develop innovative therapies and diagnostics for cancer and rare diseases to improve quality of
life. Our deoxymab technology has been deployed in collaboration with scientists from globally distinguished medical
institutions and offers revolutionary new antibody approaches for treating and managing these devastating disease.
New approaches for treating cancer
Patrys’ deoxymab platform is based on a unique antibody called 3E10 that was originally isolated from a mouse
model of the human autoimmune disease lupus. The 3E10 antibody has several unusual biological properties not
typically seen in antibodies.
Patrys has developed humanised versions of 3E10 in different antibody formats to make them suitable for human
therapeutic applications. This has provided a range of different approaches for treating cancer that are not possible
with existing small molecule or antibody therapeutics.
Properties that make Patrys’ deoxymab antibodies unique for human therapeutic applications include:
• Cancer targeting
All cancers, regardless of their type or location, release DNA into the
bloodstream as a consequence of the high rates of cell death that
occurs within tumours. Deoxymabs are attracted to this released
DNA and because of this, Patrys’ deoxymabs naturally home in on
both primary and secondary cancers (metastases) wherever they are
located in the body. Patrys believes this may allow deoxymabs to be
used as pan‑cancer seeking agents for the targeted delivery of cancer
therapies or imaging agents.
• Blood-brain barrier
The blood‑brain barrier (BBB) is a natural, physiological barrier
designed to prevent potentially damaging compounds from entering
the tissues of the brain. Unfortunately, the BBB can also prevent
drugs and antibodies from crossing from the blood into the brain
when they are needed. This is one of the factors that makes the
treatment of both primary and secondary cancers in the brain
particularly challenging. Deoxymabs are able to cross the BBB and
get to neural tissues, offering new approaches for treating cancers in
the brain.
• Cell penetrating
Binds to extracellular DNA
from dying cancer cells
ENT2 tra
n
s
p
o
r
t
e
r
Transported across the
cell membrane
Localises in the nucleus
Binds to DNA breaks
Blocks the action of
DDR enzymes, leading
to cancer cell death
Most antibodies only bind to antigens on the surface of cells. Deoxymabs are unique in that they are able to penetrate
the cell membrane and get inside of cells intact. This is because deoxymabs are carried across the cell membrane by
protein called the ENT2 transporter which is present in most human adult cells. Patrys intends to leverage this ability
of deoxymabs to potentially deliver therapeutic payloads into the cell.
• Inhibit DNA damage repair
Once deoxymabs get inside the cell nucleus, they bind to damaged DNA preventing it from being repaired by the
cell’s DNA damage repair (DDR) systems. Cells with damaged DNA are not able to divide and usually end up self‑
destructing. This DDR inhibiting activity of deoxymabs can be exploited in developing new treatments for cancer. By
using deoxymabs in cancers with compromised DDR systems or combining them with agents that damage DNA, such
as radiation and many chemotherapy drugs, deoxymabs may offer much needed therapeutic approaches for treating
cancers.
6
Expanding the therapeutic potential of deoxymabs
Patrys has developed two humanised deoxymabs: an antibody fragment called PAT‑DX1, and a full‑sized IgG antibody
called PAT‑DX3.
PAT-DX1 antibody fragment
PAT‑DX1 is a dimer of a small antibody fragment created by humanising the original mouse
deoxymab antibody 3E10. Patrys is currently scaling up the production of clinical grade
PAT‑DX1 in preparation for first‑in‑man studies. PAT‑DX1 is initially going to be developed as
a potential therapeutic for treating primary and secondary brain cancers due to its ability to
cross the blood brain barrier. Given its mechanism‑of‑action of blocking DNA damage repair
(DDR), PAT‑DX1 may also have utility for treating cancers with existing DDR deficiencies,
or in combination with other DNA damaging agents such as radiation and many
chemotherapy drugs.
PAT-DX3 full sized antibody
PAT‑DX3 is an optimised and humanised, full‑sized IgG version of the original 3E10 antibody.
PAT‑DX3 was added to Patrys’ portfolio in September 2020. Studies conducted to date have
shown that PAT‑DX3 has the same DNA‑binding and DNA damage repair (DDR) blocking
properties as PAT‑DX1 and is also able to cross the BBB. However, as expected from its larger
size, it is cleared from blood more slowly than PAT‑DX1 and may show differences in tissue
distribution due to its larger size. The different pharmaceutical profiles of PAT‑DX1 and PAT‑
DX3 may open up different clinical opportunities for Patrys’ deoxymab antibody platform
PAT-DX1-NP conjugated to nanoparticles
Through both its own internal R&D programs and a growing number of partnerships,
Patrys is using PAT‑DX1 to develop new clinical products based on the targeted delivery of
nanoparticles carrying therapeutic payloads to the inside of cancer cells. In addition, during
the year, Patrys signed a collaboration agreement with Imagion Biosystems to develop
imaging agents that combine Imagion’s MagSense techonology with PAT‑DX1’s ability to
cross the BBB and target cancers in the brain.
“Antibodies have become a dominant force in the treatment of cancer.
Our deoxymabs are active across a range of cancers, and the ability to cross
the blood-brain barrier can’t be underestimated in the fight against
hard-to-treat cancers.”
- Patrys CEO and MD, Dr James Campbell
7
Pipeline
Patrys is working hard to give people diagnosed with cancer more targeted treatment options. Our initial focus is on
Glioblastoma (GBM) and Triple Negative Breast Cancer (TNBC), with plans to expand into other solid tumors in future.
Compound
Discovery
Preclinical
Clinical
PAT‑DX1
PAT‑DX3
PAT‑DX1‑NP
Milestones: FY2020-21
During FY21, Patrys announced a number of significant clinical and commercial milestones including a successful $7.3m
capital raising.
Expansion of deoxymab portfolio with the addition of full human antibody PAT‑DX3
First patent granted for deoxymab‑nanoparticles
Capital raising of $7.3m via a Placement and Rights Issue
Successful development and selection of an optimised stable cell‑line for commercial scale
production of clinical grade PAT‑DX1
New United States patent granted for Patrys’ deoxymab assets
Completion of animal pharmacokinetic studies for both PAT‑DX1 antibody fragment and full‑sized
PAT‑DX3 IgG antibody
Announcement of a collaborative research program with Imagion Biosystems Limited to improve
brain tumor imaging and diagnosis.
Publication of preclinical data, from collaboration with Yale School of Medicine demonstrating the
ability of PAT‑DX1 to cross the blood‑brain barrier (BBB) and significantly inhibit the growth of both
primary and secondary cancers in the brain in animal models
September 2020
October 2020
November 2020
February 2021
March 2021
April 2021
May 2021
June 2021
Our First Patients
Our primary focus at Patrys is to move our lead asset, PAT DX1, to the first human clinical trial ‑ and we are confident that we
have the skills and resources to achieve this milestone in late 2022.
Patrys has built an outstanding team of local and international experts to plan and oversee the clinical development of PAT‑
DX1. They bring vital expertise in manufacturing, toxicology, clinical trial planning, clinical operations and regulatory affairs.
We have been working collaboratively with a highly qualified international contract research and development manufacturing
organisation (CRDMO) for two years, which has helped us to overcome the many challenges of antibody drug development.
We look forward to maintaining this relationship as our CRDMO scales‑up production of PAT‑DX1 in Q4 of CY 2021. Antibody
product from this run will be used for both rodent and primate toxicology studies which will inform our Human Research Ethics
Application (HREA) for our phase 1 clinical study.
Patrys’ sights are now firmly set on starting the first human clinical trial of PAT-DX1 in 2022.
8
Intellectual property
Patrys’ has continued to build on its established intellectual property position which covers many of the uses for cell‑
penetrating antibodies.
In March 2021, a new patent covering the use of Patrys’ deoxymabs in combination with radiosensitising agent(s) that
damage DNA, or inhibit DNA repair, was granted in the United States.
The company now has seven granted patents covering both forms of PAT‑DX1 and PAT‑DX3 and other dexoymabs; one in
each of Europe, Japan, China, Australia and three in the US.
In total, Patrys has a further 32 pending applications across 13 different patent families in key jurisdictions. This provides
the Company with a significant and material patent estate covering the use of its deoxymab antibodies as treatments
of cancer.
“Patrys has an extensive portfolio of patents filed in major commercial markets,
which currently includes over 13 active patent families, including 7 granted and
32 pending. Our company operates in a highly competitive and strategic space,
so protecting our intellectual property is a foremost priority.”
- Patrys CEO and MD, Dr James Campbell
Active intellectual property strategy in place to protect key assets
Patrys’ sights are now firmly set on starting the first human clinical trial of PAT-DX1 in 2022.
IP protection granted
IP protection pending
Deoxymab patent portfolio
13
7
32
Active patent
Granted patents
Patent applications
pending
9
A closer look at Patrys’ research
Patrys is committed to developing innovative therapies that have the potential to improve the treatment or
management of people with cancer. We are building a strong foundation to support the many potential therapeutic
benefits our deoxymab antibodies have to offer. Our latest research has clearly demonstrated the ability of PAT‑
DX1 to cross the blood‑brain barrier (BBB) and improve survival rates in multiple animal models that have cancers
located in the brain. This has highlighted the unique potential for our deoxymabs may offer as much‑needed
treatments for patients with primary or secondary brain cancers.
‘Researchers have developed the first antibody drug that could treat brain
cancer, with the therapy able to cross the blood-brain barrier in a major
feat for science.’
- The Australian
Patrys vision
It is our vision to be globally recognised for our research and development
expertise, to provide tangible benefits to patients and strong returns for investors.
1010
11
Journal publishes vital research supporting the therapeutic
potential of PAT-DX1
New data was published in June 2021 in the highly‑regarded Journal of Clinical Investigation – Insight, which showed
that the PAT‑DX1 antibody can cross the blood‑brain barrier and then inhibit the growth of brain cancers and metastases.
Most antibodies are unable to cross cell membranes or the blood‑brain barrier (BBB). For this reason, there have not
been any antibody therapeutics approved for treating cancers located in the brain tissue. These can be cancers that have
formed from tissues in the brain (primary cancer) or cancer cells that have migrated from cancers located elsewhere in
the body (secondary cancers or metastases).
This latest research from Dr James Hansen’s group at Yale School of Medicine has shown Patrys’ PAT‑DX1 may
provide one of the first opportunities to develop an antibody therapeutic that can target cancers in the brain. In these
experiments, human glioblastoma cells were implanted in the brains of mice, which were then treated with PAT‑DX1 once
tumours had become established in the brain.
According to Dr Hansen, these data demonstrate the ability of PAT‑DX1 to suppress tumour growth and significantly
improve survival in laboratory models of glioblastoma and of triple negative breast cancer brain metastases.
“These findings are very encouraging as the BBB prevents most antibodies from penetrating the central nervous system
and limits conventional antibody‑based approaches to brain tumours,” he said.
The ability of PAT‑DX1 to cross the BBB, localise to both primary and secondary tumours in the brain, and then selectively
kill cancer cells by blocking their DNA Damage Repair (DDR) systems highlights the potential for Patrys’ deoxymabs to
provide much‑needed, new therapeutic options for the treatment of cancers located in the brain.
“We continue to be impressed with the robust scientific evidence and rationale that is backing the development of our
deoxymab drug platform,” said Dr James Campbell, Patrys Chief Executive Officer and Managing Director.
“This publication, in a highly‑regarded, peer‑reviewed journal is further validation of the pioneering position that Patrys
and its collaborators at Yale School of Medicine have established with its deoxymab platform. Glioblastoma and TNBC
brain metastases are very difficult to treat, and the prognosis for patients with these cancers is generally poor, and we are
excited by the potential that PAT‑DX1 shows in animal models of these cancers.”
“These data demonstrate the ability of DX1 to suppress tumour growth
and significantly improve survival in laboratory models of glioblastoma
and of triple negative breast cancer brain metastases.”
- Dr James Hansen, Yale School of Medicine
12
Patrys Featured in The Australian
This encouraging clinical data was shared as part of a national feature story in Australia’s leading broadsheet newspaper,
The Australian. Health Editor Natasha Robinson highlighted the significance of the new preclinical data for PAT‑DX1 ‑ and
what it means for future, potential patients.
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Patrys mission
Another quote?
It is our mission to develop innovative therapies and diagnostics for cancer and
rare diseases to improve quality of life. Our deoxymab technology has been
developed in collaboration with scientists from globally distinguished medical
institutions and offers revolutionary new antibody approaches for treating and
managing this devastating disease.
13
Building Patrys’ deoxymab pipeline
Patrys is leveraging its deoxymab platform to build a rich pipeline of products by developing different antibody formats
that can be used in multiple ways to treat a range of cancers.
In September 2020, Patrys announced the addition of a full‑sized, humanised IgG deoxymab antibody, called PAT‑DX3 to
its pipeline. Patry’s deoxymab pipeline now includes different antibody formats:
• PAT‑DX1 – a small, antibody fragment containing two copies of the binding site and is an optimised version of the
original 3E10 antibody
• PAT‑DX3 – a full‑sized IgG antibody which is also based on an optimised version of the original 3E10 antibody
Studies conducted during the year show both these antibodies bind to damaged DNA and can cross the blood brain
barrier. However, they do have different pharmaceutical properties in terms of how long they last in the bloodstream,
which tissues they can access, and how they can be used to carry different payloads.
One technology – many applications
The different biological properties of Patrys’ deoxymabs can be leveraged in a different ways to treat a range of cancers.
Single agent therapies
Combination therapies
Targeting agent
To treat cancers with existing
DDR deficiencies
Using deoxymabs in combination
with chemo or radiation therapies
Delivers therapeutic payloads
into the cell nucleus
Single agent therapies: many cancers have mutations that compromise their internal DNA damage repair (DDR
systems). While these mutations on their own are not lethal, additional inhibition of DDR by deoxymabs can push the
cancer cells over the edge and kill them. This approach is termed ‘synthetic lethality’.
Combination therapies: another approach is to combine the DDR inhibiting activity of deoxymabs with an existing
cancer therapy that causes damage to DNA such as radiation therapy or many chemotherapy drugs. This can make the
existing therapies more effective or be used to lower the dose, and consequently the side‑effects of the existing therapy.
Targeting agents: because deoxymabs are attracted to cancer cells, regardless of what type or where they are in the
body, they can be used to target the delivery of therapeutic or imaging agents to solid cancers anywhere in the body. The
ability of deoxymabs to cross the blood brain barrier also opens up the possibility of using antibody targeted therapies to
treat brain cancers. Because of these unusual properties, Patrys’ deoxymabs have the potential to be used in novel ways
as a targeting agent in Antibody Drug Conjugates (ADCs). ADCs are antibody‑delivered therapeutics and have become
one of the most exciting approaches of drug development. The addition of PAT‑DX3 to the pipeline has expanded
these opportunities by providing the option to use a full‑sized IgG antibody with more attachment sites and a different
pharmacokinetic profile.
14
ADC’s – a big opportunity for Patrys
Analytical studies have confirmed that different payloads (therapeutic drugs as well as imaging agents) can be successfully linked to
Patrys’ deoxymabs. Furthermore, animal studies show that deoxymabs are able to carry these linked chemical payloads to cancers,
even when they are located in the brain.
As a result, Patrys is already working with a number of collaborators and potential commercial partners to evaluate the use of its
deoxymabs as targeting agents for ADCs.
Similarly, during the year, Patrys announced a collaboration with Imagion Biosystems to use the targeting abilities of deoxymabs to
develop new imaging agents for diagnosing cancers in the brain.
Two of the biggest deals in biotech in 2020 were for ADCs:
• Astrazeneca / Daiichi Sankyo: US$1B upfront, total deal US$6B for cancer ADC
• Merck / Seattle Genetics: US$600M upfront, total deal US$3.2B for cancer ADC
“An ADC is like a guided missile, where the antibody is the guiding
system of a cytotoxic payload.”
- Patrys CEO and MD, Dr James Campbell.
15
Antibodies come of age
The FDA approved its 100th antibody this year. While it has taken 35 years to achieve this milestone, the next hundred
are expected to be approved in possibly one third of that time. Antibodies now account for nearly one fifth of new drugs
approved by the FDA.
Canonical antibody
Antibody–drug conjugate
Bispecific
Fragment
Other
1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
2000
2001
2002
2003
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2020
Antibodies are becoming one of the key foundations of modern medicine. The reason is they provide the ability to precisely
target different tissues or biochemical processes. This has also been enhanced by the development of new antibody formats
that have opened up new approaches for using antibodies.
Canonical antibodies
Antibody–drug conjugates
Bispecifics
Fragments
Antibodies now account for nearly one fifth of new drugs approved by the FDA.
Fab
scFv Nanobody
12
10
8
6
4
2
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16
While antibodies can be used in a range of different ways to treat a variety of medical conditions, 41 of the first 100 FDA‑
approved antibodies were developed for treating different cancers.
Inborn errors 1
Bone 2
Cardiovascular 3
Transplant rejection 3
Ophthalmology 3
Gastroenterology 3
Pulmonology 5
Rheumatology 6
Cancer 41
Infectious disease 7
Neurology 8
Haematology 9
Dermatology 9
2021 ‑ FDA approves 100th monoclonal antibody product, volume 20 | July 2021 p494
Antibodies also were some of biggest selling drugs in 2019
012 34567 89();:
www.nature .com/nrd
Antibody
Target
2019 sales
(US$ billion)
Antibody
Target
2019 sales
(US$ billion)
Adalimumab
Pembrolizumab
Nivolumab
Bevacizumab
Rituximab
TNF
PD1
PD1
VEGF
CD20
Ustekinumab
IL‑12/23
Trastuzumab
Infliximab
HER2
TNF
Denosumab
RANK‑ L
Eculizumab
C5
19.6
11.1
8.0
7.1
6.5
6.5
6.1
5.3
5.0
3.9
mAb, monoclonal antibody. Source: Cortellis.
Ranibizumab
Ocrelizumab
Secukinumab
Pertuzumab
Golimumab
Omalizumab
VEGF
CD20
IL‑17A
HER2
TNF
IgE
Daratumumab
CD38
Vedolizumab
(cid:0)4(cid:0)7 integrin
Dupilumab
Tocilizumab
IL-4R(cid:0)
IL‑6R
3.9
3.7
3.6
3.6
3.4
3.2
3.0
2.5
2.3
2.3
This provides a very attractive commercial landscape for Patrys’ deoxymab antibodies which are being developed to treat
cancer, and which have potential utility as targeting agents for the newest class of antibody‑based therapeutics, namely ADCs.
As far as we know, none of the 100 approved antibodies cross the blood brain barrier – and thus, Patrys’ deoxymabs may prove
to be one of the first antibody‑based therapeutics that can be used to treat cancers in the brain.
17
Commercial Interest in Cancer
Cancer continues to be one of the highest value therapeutic areas for life science companies. The deal space during
2020 was particularly active in drug classes and applications relevant to Patrys’ deoxymabs. Of particular note is the deal
between GlaxoSmithKline and IDEAYA for a cancer targeting drug that works by synthetic lethality.
Buyer
Seller
Total projected
value
($ million)
Upfront
payment
($ million)
Mechanism
Drug(s)
Status (deal start)
AstraZeneca
Daiichi Sankyo
6,000
1,000
Antibody–drug conjugate
Datopotamab deruxtecan
AbbVie
Genmab
Merck & Co
Seagen
GlaxoSmithKline
IDEAYA
Gilead
Incyte
Arcus
MorphoSys
3,900
3,200
3,030
2,000
1,955
750
600
100
175
750
Bispecific T cell engager
GEN‑1044; GEN‑3009; epcoritamab
Antibody–drug conjugate
Ladiratuzumab vedotin
Precision medicine; synthetic lethality
IDE397; Pol‑theta inhibitors; werner inhibitors
Preclinical
Anti‑ITIM antibody; anti‑PD1 antibody
Domvanalimab; zimberelimab
Anti‑CD19 antibody
Tafasitamab
Genentech
Bicycle
1,720
30
Peptide–drug conjugate
Drug discovery platform
EQRx
CStone
1,300
150
Anti‑PD1 antibody; anti‑PDL1 antibody
CS1003; sugemalimab
2021 – Adapted from: Oncology dealmaking in 2020; www.nature.com/biopharmdeal | March 2021 | B4
Phase 1
Phase 2
Phase 2
Pre‑registration
Pre‑registration
Discovery
Phase 3
Cancer-related assets accounted for more than half (eight) of the top 15, with four
in the cancer immunotherapy area, demonstrating that biopharma’s appetite for
this area is far from sated. Collectively, the cancer deals had a value (biobucks
included) of almost $24 billion out of a total of just over $40 billion overall.
- Fierce Biotech, 2020
SOURCE: https://www.fiercebiotech.com/special‑report/top‑15‑biopharma‑licensing‑deals‑2020
Initial studies in animal models using PAT‑DX1 as a single agent to treat cancers with pre‑existing compromised DDR systems,
such as triple negative breast cancer, show that this approach is a viable option for deoxymab antibodies.
While Patrys’ internal R&D is clearly focused on getting PAT‑DX1 into clinical trials, there is plenty of opportunity for the company
to enter into commercial partnerships for other applications for its deoxymab antibodies. Industry partners are
in‑licencing assets at earlier stages and on commercially attractive terms. The current trend is towards a great number of earlier
stage deals at equivalent or improving commercial terms.
Earlier Deals Go Larger
Record Year for Biopharma Partnership Deals
Biopharma Therapeutics and Platform Partnerships Involving R&G
$146.3
$32.3
$71.9
$67.1
$37.7
$26.1
$51.4
$42.4
$42.7
$42.3
$92.9
$111.3
$62.9
1400
1200
1000
800
600
400
200
0
Number of Deals
Total Deal Value ($B)
Total Upfront Cash and Equity ($B)
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
SOURCE: https://blog.dealforma.com/biotech‑and‑pharma‑deals‑in‑2020/
$160.0
$140.0
$120.0
$100.0
$80.0
$60.0
$40.0
$20.0
$0.0
18
Buyer
Seller
Mechanism
Drug(s)
Status (deal start)
Number of Deals
“The future for therapeutic antibodies is exciting. While
our focus is on advancing to the first human clinical trial
of PAT-DX1 in 2022, we are actively engaged in business
development efforts to leverage the unique attributes of
deoxymabs, and expand our portfolio of novel assets.”
- Patrys CEO and MD, Dr James Campbell
19
Patrys Limited
Directors' report
30 June 2021
The Directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as
the 'Group') consisting of Patrys Limited (referred to hereafter as the 'company' or 'parent entity') and the entities it controlled
at the end of, or during, the year ended 30 June 2021.
Directors
The following persons were Directors of Patrys Limited during the whole of the financial year and up to the date of this report,
unless otherwise stated:
Mr. John Read (Non-Executive Chairman)
Mr. Michael Stork (Non-Executive Director & Deputy Chairman)
Ms. Suzy Jones (Non-Executive Director)
Dr. James Campbell (Managing Director & CEO)
Dr. Pamela M. Klein (Non-Executive Director)
Principal activities
Patrys is leveraging its proprietary deoxymab antibody technology platform to develop new therapies for the treatment of
cancer. Unlike most other antibodies, Patrys’ deoxymabs are able to cross the blood-brain barrier, enter cells and the cell
nucleus, and block DNA damage repair systems. Patrys is using these properties to develop new therapies that incorporate
deoxymabs as a single agent, as part of a combination therapy, and for the targeted delivery of therapeutic agents to cancer
cells.
The company has developed PAT-DX1, a humanised antibody fragment based on the original mouse deoxymab, 3E10.
Patrys is advancing PAT-DX1 through late pre-clinical development towards an anticipated first in human clinical study in
2022. Large scale manufacture of clinical grade PAT-DX is planned for the 2021/22 financial year and will provide the material
required to complete the final preclinical studies and first clinical studies. Patrys is also progressing pre-clinical to PAT-DX1-
NP, a version of PAT-DX1 which is coupled to a nanoparticle for targeted delivery of a range of payloads to tumours. During
September 2020, Patrys added a full-sized IgG deoxymab, PAT-DX3, to its pipeline, expanding the potential opportunities
for deoxymabs.
Patrys has an exclusive, worldwide licence to the deoxymab technology for cancer applications from Yale University, and is
using this to develop and commercialise a portfolio of anti-cancer and diagnostic agents that include: anti-DNA antibodies,
antibody fragments, variants and conjugates.
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 $4,062,920 (30 June 2020: $2,748,539).
20
Patrys Limited
Directors' report
30 June 2021
R&D progress
During the 2021 financial year, Patrys expanded its pipeline and advanced the preclinical and manufacturing programs for
PAT-DX1.
The PAT-DX1 clinical development program advanced considerably during the period, with the completion and selection of
a stable cell line to be used for all future manufacturing of PAT-DX1 for clinical and commercial use. This stable cell line is
currently being converted into a Master Cell Bank, which will be used for an initial full scale manufacturing run (an engineering
run) for the production of PAT-DX1 in CY 2021. The antibodies produced in the engineering run will be used for rodent and
primate toxicology studies, planned for H1 2022, and these studies will inform the Human Research Ethics Application
(HREA). The phase 1 clinical trial is anticipated to commence in late 2022. As disclosed in Note 23, subsequent to June 30
2021, the planned phase 1 study has been delayed by approximately 6 months due to COVID-19 related supply chain issues
with key ingredients necessary for production of PAT-DX1.
In September 2020, Patrys announced it had completed the initial production and characterisation of PAT-DX3, a full-sized,
humanised IgG antibody based on the deoxymab antibody fragment PAT-DX1. PAT-DX3 has demonstrated functional
equivalence with PAT-DX1 in several important attributes including the ability to penetrate the cell nucleus, and the ability to
bind to the DNA that is released from damaged tumour cells. Significantly, PAT-DX3 has different pharmacokinetic attributes
to PAT-DX1. PAT-DX3 offers Patrys the ability to further leverage its deoxymab platform by allowing the development of
new, broad-based, anticancer therapeutics with different pharmaceutical profiles. This full-sized version of PAT-DX1 is
protected by existing, granted and pending patents in key jurisdictions
During the first half of 2021 financial year, Patrys made significant progress with its development of PAT-DX1. In July 2020,
Patrys partnered with Olivia Newton-John Cancer Research Institute (ONJCRI), as the La Trobe University School of Cancer
Medicine, and was awarded a $50,000 Federal Government grant to support research at ONJCRI on Patrys’ PAT-DX1
program. This research will be led by Professor Robin Anderson, Head of ONJCRI’s Translational Breast Cancer Program
and the Metastasis Research Laboratory.
Corporate developments
During the financial year ended 30 June 2021, Patrys completed two capital raises for a total of $11.7M before costs ($4.3M
in August and $7.4M in November and December). These have provided the company with a strong balance sheet and
sufficient funds to expand the deoxymab platform, complete the commercial-scale manufacture of clinical grade material and
complete required preclinical studies for PAT-DX1. As a result, the company believes that it has sufficient capital to be able
initiate a first human clinical trial of PAT-DX1 in 2022.
In June 2021 data from Patrys’ preclinical studies were published “JCI – Insight” a leading peer-reviewed scientific
publication. This data demonstrated the ability of Patrys’ PAT-DX1 deoxymab to cross the blood brain barrier (BBB), suppress
metastatic tumour growth, and prolong survival, in an animal model of triple negative breast cancer (TNBC) brain metastases,
and described the importance of the ENT2 transporter in enabling the transit of the BBB.
During the financial year, the company initiated an active clinical engagement program. CEO Dr James Campbell and Board
member Dr Pamela M. Klein held key opinion leader (KOL) discussions with several leading international neuro-oncologists.
These discussions provide the company with valuable insights to assist with identifying the most attractive clinical
opportunities for Patrys’ deoxymabs.
A patent covering the use of Patrys’ novel deoxymab platform for the targeted delivery of anticancer drugs using nanoparticles
was granted in Australia during the period. This patent covers the use of deoxymabs (both PAT-DX1 and PAT-DX3)
conjugated to nanoparticles (NPs) for both the diagnosis and treatment of multiple types of cancer.
21
Patrys Limited
Directors' report
30 June 2021
Looking ahead
Under the guidance of the Board and the Scientific Advisory Board Patrys made advances in its efforts to build and realise
the value of its assets in the twelve months to 30 June 2021. Numerous studies investigating both the mechanisms and
applications of PAT-DX1 and PAT-DX3 have been planned and initiated, and the company looks forward to sharing the
details of these studies once any novel and valuable intellectual property (IP) has been evaluated and protected by patent
applications. These studies and patent applications continue to add to a robust portfolio of IP that Patrys will advance through
a combination of self-funded projects, academic alliances and commercial collaborations.
Value-drivers for the coming financial year will include the completion of pre-clinical studies for PAT-DX1 in preparation for
the anticipated phase 1 clinical trial in late 2022. In addition to this core activity Patrys will seek to build further value in the
platform expansion activities that it commenced in the year ended 30 June 2021. These include, but are not limited to the
development of PAT-DX3 as a single agent therapeutic, the exploration of antibody drug conjugates (ADCs) using PAT-DX3,
payload delivery to tumours using PAT-DX1-NP and collaborations on novel diagnostic agents based on deoxymabs.
Patrys has transformed itself from a single asset company to a platform technology with a lead agent approaching the clinic,
and believes that the value being realised from the broader platform may be substantial.
Operating results
Patrys held cash and term deposits of $10,916,604 at the reporting date. Patrys’ policy is to hold its cash and cash equivalent
deposits in 'A' rated or better deposits.
Patrys’ strategy is to outsource product development expenses, including manufacturing, regulatory and clinical trial
expenses, to specialist, best of breed partner organisations. As a consequence, Patrys has not incurred any major capital
expenditure for the period and does not intend to incur substantial commitments for capital expenditure in the immediate
future.
Consolidated revenue including other income during the period was $1,338,377 (2020: $772,844). This revenue includes
interest of $5,296 (2020: $59,891), R&D tax incentive income of $1,188,581 (2020: $623,197) and licencing income of
$27,500 (2020: $27,500).
Total consolidated operating expenses for the period were $5,401,297 (2020: $3,521,383). Operating expenses include
research and development costs of $2,861,902 (2020: $1,367,988) which have been expensed in the year they were
incurred. The increase in R&D costs in 2021 is due to increase in activity related to pre-clinical and manufacturing works in
the financial year. Administration and management costs contributed a further $2,539,395 (2020: $2,153,395) to expenses
from continuing operations. The increase during the financial year is due to a combination of items, including insurance cost,
business development cost and other general administrative costs.
Significant changes in the state of affairs
On 13 July 2020 the company announced that the Olivia Newton-John Cancer Research Institute (ONJCRI), as the La Trobe
University School of Cancer Medicine, has been awarded a $50,000 Federal Government grant to support research at
ONJCRI on Patrys’ PAT-DX1 program. ONJCRI is one of Australian’s leading biomedical research institutes with strengths
in cancer biology, translational medicine and clinical trials.
On 5 August 2020 the company completed the Entitlement Offer by way of issue and allotment of 357,530,827 fully paid
ordinary shares at $0.012 (1.2 cents) per share, raising $4.29m before costs and a total of 126,677,087 Options. The Options
issued comprise 119,177,087 free attaching options applied for under the fully underwritten non-renounceable Entitlement
Offer and 7,500,000 Options which have been issued to Lazarus Corporate Finance Pty Limited (Underwriter and Lead
Manager).
On 12 October 2020 the company issued 6,000,000 fully paid ordinary shares, upon exercise of 6,000,000 unquoted options
exercisable at $0.0072.
22
Patrys Limited
Directors' report
30 June 2021
On 9 November 2020 the company announced a $7.3m capital raising via a placement and rights issue to fund PAT-DX1
through to first-in-human studies and platform expansion.
The placement was for the issue of 125,000,000 fully paid ordinary shares at $0.02 (2 cents) per share to raise gross
proceeds of $2.5m before costs. The placement participants were entitled to one free attaching three year option exercisable
at $0.04 (4 cents) for every three new shares issued (New Option).
The rights issue was a fully underwritten, non-renounceable rights issue on the basis of one new share for every six shares
held, at $0.02 (2 cents) per share, with one free attaching three year option exercisable at $0.04 (4 cents) for every three
new shares issued, to raise approximately $4.8m before costs.
On 16 November 2020 the company completed the placement portion of the above capital raising by issue of 125,000,000
fully paid ordinary shares at $0.02 (2 cents) per share, raising $2.5m before costs.
On 15 December 2020 the company completed the rights issue portion of the above capital raising, by way of issue of
127,928,183 fully paid ordinary shares and a total of 90,109,523 options. The shares comprise 120,428,183 shares applied
for under the fully underwritten non-renounceable Entitlement Offer, issued at $0.02 (2 cents) and raising $2,408,564 before
costs, and 7,500,000 shares as settlement of the Placement fee. The options issued comprise 40,142,855 free attaching
options applied for under the Entitlement Offer, 41,666,668 free attaching options to participants in the Placement, 2,500,000
free attaching options in relation to the Placement fee, and 5,800,000 options to Lazarus Corporate Finance Pty Limited
(Underwriter and Lead Manager).
On 17 December 2020 the company issued the shortfall securities relating to the rights issue, with 118,926,336 shortfall
shares issued at $0.02 (2 cents) and 39,642,126 options, raising $2,378,527 before costs.
On 18 December 2020 the company issued 22,100,000 unquoted options, exercisable at $0.027 (2.7 cents), expiring 18
December 2024, comprising 14,600,000 unquoted options issued to Directors of the company, pursuant to Resolutions 4, 5,
6, 7 and 8 of the company’s Notice of Annual General Meeting held on 19 November 2020, and as approved by Shareholders,
and 7,500,000 unquoted options issued to employees of the company under the company’s Executive Share Option Plan
(ESOP).
On 21 December 2020 the company issued 500,000 unquoted options, exercisable at $0.027 (2.7 cents) and expiring 18
December 2024 to members of the Scientific Advisory Board (SAB), pursuant to their consulting agreements.
On 21 December 2020 the company issued 1,250,000 PABO Listed Options, exercisable at $0.024 (2.4 cents), expiring 5
August 2023 to a consultant as part consideration for services provided.
On 10 February 2021 the company announced that it has selected an optimised stable cell line for its lead asset PAT-DX1.
On 17 February 2021 the company issued a total of 41,111 fully paid ordinary shares upon the exercise of 40,185 PABO
Listed Options, exercisable at $0.024 (2.4 cents) each, and 926 PABOA Listed Options, exercisable at $0.04 (4 cents) each.
On 3 March 2021 the company issued 4,000,000 fully paid ordinary shares at an issue price of $0.0072 (0.72 cents) per
share in relation to the exercise of unquoted options.
On 31 March 2021 the company announced that US patent number:10,961,301, titled "Cell-penetrating anti-DNA antibodies
and uses thereof inhibit DNS repair" has been granted. This new patent provides protection until August 2033.
On 28 April 2021, the company issued 5,000,000 fully paid ordinary shares at an issue price of $0.0072 (0.72 cents) per
share in relation to the exercise of unquoted options. The company also issued 53,333 fully paid ordinary shares at an issue
price of $0.024 (2.4 cents) per share in relation to the exercise of PABO quoted options.
There were no other significant changes in the state of affairs of the Group during the financial year.
23
Patrys Limited
Directors' report
30 June 2021
Matters subsequent to the end of the financial year
The impact of the COVID-19 pandemic is ongoing and while it had not had a material impact on the Group up to 30 June
2021, it was noted after the reporting date that the pandemic had impacted supply chains for the media used in the production
of PAT-DX1, and that this would result in an expected six month delay to the commencement of the phase 1 clinical trial.
The company is not aware of other impacts, but notes that other potential impacts, positive and/or negative, are possible.
The situation is rapidly developing and is dependent on measures imposed by the Australian Government and other
countries, such as maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus that
may be provided.
Subsequent to the end of the financial year, on 2 July 2021, the company announced the issue of 2,500,000 fully paid
ordinary shares, at an issue price of $0.0072 (0.72 cents) per share in relation to the exercise of unquoted options. The
company also issued 26,790 fully paid ordinary shares at an issue price of $0.04 (4 cents) per share in relation to the exercise
of PABOA quoted options.
No other matter or circumstance has arisen since 30 June 2021 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 Group will continue to pursue its objective of developing antibodies as therapies for a range of different cancers. Patrys
has a pipeline of anti-cancer antibodies for both internal development and as partnering opportunities.
The Group’s focus for the coming period will be to build further value into the Deoxymab platform through pre-clinical
activities, to commence progression of the PAT-DX1 asset towards the clinic.
Environmental regulation
The Group is not subject to any significant environmental regulation under Australian Commonwealth or State law.
Information on Directors
Name:
Title:
Qualifications:
Experience and expertise:
Other current directorships:
Former directorships (last 3 years): CVC Limited
Special responsibilities:
Interests in shares:
Interests in options:
John Read
Non-Executive Chairman
BSc (Hons), MBA, FAICD
Mr. Read is an experienced Chairman and Director in public, private and government
organisations. Through his extensive career in venture capital, private equity and
commercialisation he has gained a depth of experience in the formation and growth of
emerging companies with an emphasis on commercial entities that provide broad
societal benefits. He was previously the Chairman of CVC Limited (ASX: CVC) from
1989 to 2020 and Chairman of Eildon Capital Limited (ASX:EDC) from 2013 to 2016,
Pro-Pac Packaging Limited (ASX:PPG) from 2005 to 2010, The Environmental Group
Limited (ASX:EGL) from 2001 to 2012 and The Central Coast Water Corporation from
2011 to 2014.
None
Chairman of Nomination and Remuneration Committee
Member of Audit and Risk Committee
10,160,306 ordinary shares
416,667 PABOA Listed options, exercisable at $0.04 (4 cents), expiring 15 December
2023
6,000,000 Unlisted Options exercisable at $0.035, expiring on 22 November 2023,
1,200,000 Unlisted options, exercisable at $0.027 (2.7 cents), expiring on 18 December
2024, 396,132 PABO Listed options, exercisable at $0.024 (2.4 cents), expiring 15
December 2023.
24
Patrys Limited
Directors' report
30 June 2021
Name:
Title:
Qualifications:
Experience and expertise:
James Campbell
Managing Director and Chief Executive Officer
Ph.D, MBA, GAICD
Dr. Campbell has more than 20 years of international biotechnology research,
management and leadership experience and has been involved in the creation and/or
transformation of multiple successful Australian and international biotechnology
companies. Dr. Campbell was previously the CFO and COO of ChemGenex
Pharmaceuticals Limited (ASX:CXS), where, as a member of the executive team he
helped transform a research-based company with a market capitalization of $10M to a
company with completed clinical trials and regulatory dossiers submitted to the FDA
and EMA. In 2011 ChemGenex was sold to Cephalon for $230M. Dr. Campbell was a
foundation executive of Evolve Biosystems, and has assisted private biotechnology
companies in Australia, New Zealand and the USA with successful capital raising and
partnering negotiations. Dr. Campbell sits on the Board of AusBiotech, Australia's peak
industry body for biotechnology.
Non-Executive Director of Prescient Therapeutics Limited (ASX:PTX.)
8,432,422 fully paid ordinary shares
399,415 PABO Listed options, exercisable at $0.024 (2.4 cents), expiring 5 August
2023,
401,544 PABOA Listed options, exercisable at $0.04 (4 cents), expiring 15 December
2023,
9,000,000 Unlisted Options exercisable at $0.0072, expiring 24 November 2021,
10,000,000 Unlisted Options exercisable at $0.035, expiring on 22 November 2023 and
11,000,000 Unlisted options, exercisable at $0.027 (2.7 cents), expiring on 18
December 2024.
Other current directorships:
Former directorships (last 3 years): Non-Executive Director of Invion Limited (ASX:IVX) (ceased on 21 December 2019)
Interests in shares:
Interests in options:
Name:
Title:
Qualifications:
Experience and expertise:
Michael Stork
Non-Executive Director and Deputy Chairman
BBA
Mr. Stork is the Managing Director of Stork Holdings Ltd, an Investment Holding
company active in the Canadian technology startup sector. Mr. Stork was on the Board
of Governors of the University of Waterloo and is the Chairman of the Waterloo
Accelerator Centre, a technology company incubator affiliated with the University. He
was the Chairman of Spartan Biosciences Inc., an Ottawa based DNA analytics
company, the Chairman of Dejero Labs Inc., a Waterloo based broadcast technology
company, and active on the Boards of a number of other leading Canadian technology
start-up companies.
None
Other current directorships:
Former directorships (last 3 years): None
Special responsibilities:
Member of Nomination and Remuneration Committee
Chairman of Audit and Risk Committee
98,773,814 fully paid ordinary shares (These shares are held by Stork Holdings 2010
Ltd. The director has the ability to influence the voting and disposal of the shares of
this company).
4,000,000 Unlisted Options exercisable at $0.035, expiring on 22 November 2023 and
800,000 Unlisted options, exercisable at $0.027 (2.7 cents), expiring on 18 December
2024.
Interests in shares:
Interests in options:
25
Patrys Limited
Directors' report
30 June 2021
Name:
Title:
Experience and expertise:
Suzy Jones
Non-Executive Director
Ms. Jones is Founder and Managing Partner of DNA Ink LLC, a life sciences advisory
firm in San Francisco. DNA Ink provides corporate strategic guidance to its clients. Prior
to starting her own firm, Ms. Jones spent 20 years at Genentech where she served in
many roles in Business Development, Product Development and Immunology
Research. She managed several products during this time including Rituxan, the first
monoclonal antibody launched to treat cancer. Ms. Jones has very extensive networks
within the pharmaceutical and biotech companies and VC community in North America.
Ms. Jones is a Non-Executive Director of Calithera Biosciences, Inc. (Nasdaq:CALA),
a clinical-stage pharmaceutical company focused on discovering and developing novel
small molecule drugs directed against tumor metabolism and tumor immunology
targets for the treatment of cancer.
Calithera Biosciences, Inc.(Nasdaq:CALA)
Member of Nomination and Remuneration Committee
Member of Audit and Risk Committee
3,000,000 fully paid ordinary shares.
4,000,000 Unlisted Options exercisable at $0.035, expiring on 22 November 2023 and
800,000 Unlisted options, exercisable at $0.027 (2.7 cents), expiring on 18 December
2024.
Dr. Pamela M. Klein
Non-Executive Director
Dr. Klein has a proven track record as an executive over more than 20 years in the
oncology and biopharmaceutical industry. She is currently on the Board of Directors for
Argenx, a dual-listed (Euronext Brussels and NASDAQ), clinical-stage therapeutic
antibody company developing novel drugs in the areas of cancer and severe
autoimmune disease. She is also on the Board of F-Star Therapeutics, and Jiya
Acquisition Corp. Ms.Klein is the Principal and Founder of PMK BioResearch, which
offers strategic consulting in oncology drug development.
Argenx (arGEN-X ADS (NASD)), Argenx (arGENX (EURONEXT), Springbank
Pharmaceuticals (NASDAQ: SBPH), I-MAB BioPharma (NASDAQ:IMAB)
Other current directorships:
Former directorships (last 3 years): None
Special responsibilities:
Interests in shares:
Interests in options:
Name:
Title:
Experience and expertise:
Other current directorships:
Former directorships (last 3 years): None
Interests in shares:
Interests in options:
250,000 fully paid ordinary shares.
250,000 Unlisted options, exercisable at $0.0613 each, expiring on 15 March 2023,
250,000 Unlisted options, exercisable at $0.029 each, expiring on 15 March 2024,
4,000,000 Unlisted options, exercisable at $0.035 each, expiring on 9 October 2024;
and 800,000 Unlisted options, exercisable at $0.027 (2.7 cents), expiring on 18
December 2024.
'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.
26
Patrys Limited
Directors' report
30 June 2021
Company secretary
Ms Melanie Leydin- BBus (Acc. Corp Law) CA FGIA
Melanie Leydin holds a Bachelor of Business majoring in Accounting and Corporate Law. She is a member of the Institute
of Chartered Accountants, Fellow of the Governance Institute of Australia and is a Registered Company Auditor. She
graduated from Swinburne University in 1997, became a Chartered Accountant in 1999 and since February 2000 has been
the principal of Leydin Freyer. The practice provides outsourced company secretarial and accounting services to public and
technology,
private companies across a host of
bioscience, biotechnology and health sectors.
including but not
the Resources,
industries
limited
to
Melanie has over 25 years’ experience in the accounting profession and over 15 years’ experience holding Board positions
including Company Secretary of ASX listed entities. She has extensive experience in relation to public company
responsibilities, including ASX and ASIC compliance, control and implementation of corporate governance, statutory financial
reporting, reorganisation of Companies and shareholder relations.
Meetings of Directors
The number of meetings of the company's Board of Directors ('the Board') and of each Board committee held during the year
ended 30 June 2021, and the number of meetings attended by each Director were:
Full Board
Nomination and
Remuneration Committee
Audit and Risk Committee
Attended
Held
Attended
Held
Attended
Held
John Read
James Campbell
Suzy Jones
Michael Stork
Pamela Klein
8
8
8
8
8
8
8
8
8
8
2
-
2
2
-
2
-
2
2
-
2
-
2
2
-
2
-
2
2
-
Held: represents the number of meetings held during the time the Director held office or was a member of the relevant
committee.
Remuneration report (audited)
The remuneration report details the key management personnel remuneration arrangements for the consolidated entity, in
accordance with the requirements of the Corporations Act 2001 and its Regulations.
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the
activities of the consolidated entity, directly or indirectly, including all directors.
The remuneration report is set out under the following main headings:
●
●
●
●
●
●
Principles used to determine the nature and amount of remuneration
Details of remuneration
Service agreements
Share-based compensation
Additional information
Additional disclosures relating to key management personnel
27
Patrys Limited
Directors' report
30 June 2021
Principles used to determine the nature and amount of remuneration
The objective of the consolidated entity's executive reward framework is to ensure reward for performance is competitive
and appropriate for the results delivered. The framework aligns executive reward with the achievement of strategic objectives
and the creation of value for shareholders, and it is considered to conform to the market best practice for the delivery of
reward. The Board of Directors ('the Board') ensures that executive reward satisfies the following key criteria for good reward
governance practices:
●
●
●
●
●
competitiveness and reasonableness
acceptability to shareholders
performance linkage / alignment of executive compensation
transparency
capital management
The Board is responsible for determining and reviewing compensation arrangements for the Directors themselves, the Non-
Executive Chairman and the Senior Management team. The Board has established a Nomination and Remuneration
Committee, comprising of three Directors, the majority of which are Non-Executive Directors. This Committee is primarily
responsible for making recommendations to the Board on:
- The over-arching executive remuneration framework
- The operation of the incentive plans, including key performance indicators and performance hurdles
- Remuneration levels of executive directors and other key management personnel; and
- Non-executive director fees
The objective of the Committee is to ensure that remuneration policies and structures are fair and competitive and aligned
with the long term interests of the company. The Corporate Governance Statement provides further information on the role
of this committee, and is available on the company's website at www.patrys.com/patrys-corporate-governance.
The company has structured an executive remuneration framework that is market competitive and complimentary to the
reward strategy of the organisation.
The company’s remuneration framework seeks alignment with shareholders’ interests and is in particular aligned to the rapid
commercialisation of the company’s intellectual property and in achieving its milestones in a highly ethical and professional
manner.
The executive remuneration framework provides a mix of fixed and variable pay and performance incentive rewards.
Presently, the company’s policy in relation to performance incentive rewards is to issue a mix of equity and cash bonuses to
executives. The company does not have a policy or practice of cancelling or clawing-back performance-based remuneration
of its executives other than in accordance with the relevant plan rules.
In accordance with best practice corporate governance, the structure of Non-Executive Director and Executive Director
remuneration is separate.
Non-executive Directors remuneration
Directors’ fees are determined by reference to industry standards and were last reviewed effective 22 November 2018.
Components of the remuneration package include a cash element together with equity instruments.
Directors’ fees are currently set at $95,000 for the Chairman and $60,000 per Non-Executive Director (note Ms. Jones and
Dr. Klein receive USD$60,000 each) and reflect the demands which are made on and the responsibilities of the Directors.
However, one Non-Executive Director, Mr. Michael Stork, did not receive monetary Director fees during the year.
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 22 November 2018, where the
shareholders approved a maximum annual aggregate remuneration of $400,000.
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.
28
Patrys Limited
Directors' report
30 June 2021
The executive remuneration and reward framework has four components:
●
●
●
●
base pay and non-monetary benefits
short-term performance incentives
share-based payments
other remuneration such as superannuation and long service leave
The combination of these comprise the executive's total remuneration.
Fixed remuneration, consisting of base salary, superannuation and non-monetary benefits, is reviewed annually by the
Nomination and Remuneration Committee based on individual and business unit performance, the overall performance of
the Group and comparable market remunerations.
Executives may receive their fixed remuneration in the form of cash or other fringe benefits (for example motor vehicle
benefits) where it does not create any additional costs to the Group and provides additional value to the executive.
Incentives are payable to executives based upon the attainment of agreed corporate and individual milestones and are
reviewed and approved by the Board of Directors.
Executives and Directors are issued with equity instruments as LTIs (Long Term Incentives) in a manner that aligns this
element of remuneration with the creation of shareholder wealth. LTI grants are made to executives and Directors who are
able to influence the generation of shareholder wealth and thus have a direct impact on the creation of shareholder wealth.
Consolidated entity performance and link to remuneration
Equity instruments may be issued to new employees, and upon performance review based on performance of the individual
and the company both in absolute terms and relative to competitors in the biotechnology sector. Equity instruments that are
issued for performance are subject to performance targets set and approved by the Nomination and Remuneration
Committee.
The company’s remuneration policy seeks to reward staff members for their contribution to achieving significant operational,
strategic, partnering, preclinical, clinical and regulatory milestones. These milestones build sustainable and long term
shareholder value.
Voting and comments made at the company's 19 November 2020 Annual General Meeting ('AGM')
At the 19 November 2020 AGM, 98.43% of the votes received supported the adoption of the remuneration report for the year
ended 30 June 2020. The company did not receive any specific feedback at the AGM regarding its remuneration practices.
Details of remuneration
Amounts of remuneration
Details of the remuneration of key management personnel of the consolidated entity are set out in the following tables. Unless
otherwise noted, the named persons were key management personnel for the whole of the period ended 30 June 2021.
The Key Management Personnel of the consolidated entity consisted of the following directors of Patrys Limited:
●
●
●
●
●
John Read (Chairman)
James Campbell (Managing Director and Chief Executive Officer)
Michael Stork (Non-Executive Director)
Suzy Jones (Non-Executive Director)
Pamela Klein (Non-Executive Director)
Other Key Management Personnel
●
Melanie Leydin (Company Secretary)
29
Patrys Limited
Directors' report
30 June 2021
30 June 2021
Non-Executive Directors:
John Read
Suzy Jones*
Michael Stork
Pamela Klein*
Executive Directors:
James Campbell**
Other Key Management
Personnel:
Melanie Leydin***
Short-term
benefits
Short-term
benefits
Short-term
benefits
Post-
employment
benefits
Cash salary
and fees
$
Bonus
$
Annual
leave
$
Super-
annuation
$
Long-term
benefits
Long
service
leave
$
Share-
based
payments
Equity-
settled
options
$
Total
$
95,000
80,277
-
80,928
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
12,401
7,238
7,238
13,184
107,401
87,515
7,238
94,112
324,687
160,000
16,554
21,003
6,451
72,507
601,202
150,000
730,892
-
160,000
-
16,554
-
21,003
-
6,451
-
112,568
150,000
1,047,468
*
**
Ms Jones was paid $60,000 USD at an exchange rate of $0.8110 USD to $1 AUD.
Ms Klein was paid $60,000 USD at an exchange rate of $0.8045 USD to $1 AUD.
Bonus of $70,000 relates to FY 2020 and paid to Mr Campbell in October 2020 and bonus of $90,000 relates to FY
2021 and to be paid to Mr Campbell in August 2021.
*** Fees shown for Ms Leydin were paid to Leydin Freyer Corp Pty Ltd for the provision of company secretarial and
accounting services.
Short-term
benefits
Short-term
benefits
Short-term
benefits
Post-
employment
benefits
Cash salary
and fees
$
Bonus
$
Annual
leave
$
Super-
annuation
$
Long-term
benefits
Long
service
leave
$
Share-
based
payments
Equity-
settled
options
$
Total
$
95,000
89,374
-
78,361
317,577
120,000
700,312
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
30,708
15,354
15,354
34,970
125,708
104,728
15,354
113,331
12,345
21,003
6,600
76,770
434,295
-
12,345
-
21,003
-
6,600
-
173,156
120,000
913,416
30 June 2020
Non-Executive Directors:
John Read
Suzy Jones*
Michael Stork
Pamela Klein*
Executive Directors:
James Campbell
Other Key Management
Personnel:
Melanie Leydin**
*
**
Ms Jones was paid $60,000 USD at an exchange rate of $0.6713 USD to $1 AUD.
Ms Klein was paid $52,500 USD (from 1 October 2019) at an exchange rate of $0.6699 USD to $1 AUD. The figure
includes consulting fees of $7,500 USD paid prior to her appointment as a Director of the company.
Fees shown for Ms Leydin were paid to Leydin Freyer Corp Pty Ltd for the provision of company secretarial and
accounting services.
30
Patrys Limited
Directors' report
30 June 2021
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Name
Non-Executive Directors:
John Read
Suzy Jones
Pamela Klein
Michael Stork
Executive Directors:
James Campbell
Other Key Management
Personnel:
Melanie Leydin
Service agreements
Fixed remuneration
At risk - STI
30 June 2021 30 June 2020 30 June 2021 30 June 2020 30 June 2021 30 June 2020
At risk - LTI
88%
92%
86%
-
76%
85%
69%
-
-
-
-
-
61%
82%
27%
100%
100%
-
-
-
-
-
-
-
12%
8%
14%
100%
24%
15%
31%
100%
12%
18%
-
-
Remuneration and other terms of employment for key management personnel are formalised in service agreements. Details
of these agreements are as follows:
Name:
Title:
Agreement commenced:
Term of agreement:
Details:
Name:
Title:
Agreement commenced:
Term of agreement:
Details:
Name:
Title:
Agreement commenced:
Term of agreement:
Details:
Name:
Title:
Agreement commenced:
Term of agreement:
Details:
James Campbell
Managing Director and Chief Executive Officer
12 November 2014 as Non-Executive Director and 13 April 2015 as Managing Director
No fixed term for an ongoing term subject to termination by the company with 6 months'
notice and termination by the employee with 6 months' notice of the employee to the
company, or 12 months' notice in the event of a successful takeover.
Dr Campbell will be entitled to an annual salary (inclusive of superannuation) of
$345,690 effective from 1 July 2020 and $350,530 effective from 1 July 2021. The
Remuneration Package is inclusive of any fringe benefits tax for which the company is
liable in respect of the employee’s total remuneration and any superannuation
contributions. The employee's performance will be reviewed annually or more
frequently if required.
John Read
Non-Executive Chairman
29 May 2007. A new agreement became effective 1 December 2009.
No fixed term.
$95,000 per annum to be reviewed independently and annually by the Board of
Directors.
Suzy Jones
Non-Executive Director
15 December 2011
No fixed term.
$USD60,000 per annum to be reviewed independently and annually by the Board of
Directors.
Pamela Klein
Non- Executive Director
1 October 2019
No fixed term, with 1 months' notice.
$USD60,000 per annum to be reviewed independently and annually by the Board of
Directors.
31
Patrys Limited
Directors' report
30 June 2021
Name:
Title:
Agreement commenced:
Term of agreement:
Details:
Melanie Leydin
Company Secretary
1 October 2015
No fixed term
$10,000 per month for company secretarial and accounting services effective from 1
March 2019. Other engagements are undertaken on an adhoc basis at agreed fees.
Key Management Personnel 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 Key Management Personnel as part of compensation during the year
ended 30 June 2021.
Options
The terms and conditions of each grant of options over ordinary shares affecting remuneration of Directors and other key
management personnel in this financial year or future reporting years are as follows:
Name
Number of
options
granted
Grant date
Vesting date and
exercisable date
Expiry date
Exercise price at grant date
Fair value
per option
John Read
John Read
Susan Jones
Susan Jones
Pamela Klein
Pamela Klein
Pamela Klein
James Campbell
James Campbell
Michael Stork
Michael Stork
600,000 15/12/2020
600,000 15/12/2020
400,000 15/12/2020
400,000 15/12/2020
400,000 15/12/2020
400,000 15/12/2020
1,000,000 30/09/2019
5,500,000 15/12/2020
5,500,000 15/12/2020
400,000 15/12/2020
400,000 15/12/2020
15/12/2021*
15/12/2022**
15/12/2021*
15/12/2022**
15/12/2021*
15/12/2022**
30/09/2021***
15/12/2021*
15/12/2022**
15/12/2021*
15/12/2022**
18/12/2024
18/12/2024
18/12/2024
18/12/2024
18/12/2024
18/12/2024
30/09/2024
18/12/2024
18/12/2024
18/12/2024
18/12/2024
$0.0270
$0.0270
$0.0270
$0.0270
$0.0270
$0.0270
$0.0350
$0.0270
$0.0270
$0.0270
$0.0270
$0.01250
$0.01360
$0.01250
$0.01360
$0.01250
$0.01360
$0.01240
$0.01250
$0.01360
$0.01250
$0.01360
*Vesting on the 12 month anniversary of shareholder approval and the share price is equal to or greater than a 20-day VWAP
of $0.03 (3.0 cents); exercisable thereafter.
**Vesting on the 24 month anniversary of shareholder approval and the share price is equal to or greater than a 20-day
VWAP of $0.04 (4.0 cents); exercisable thereafter.
*** The share price is equal to or greater than a 20-day VWAP of $0.07 (7.0 cents); exercisable thereafter.
Options granted carry no dividend or voting rights.
There were no options over ordinary shares issued to Directors and other key management personnel as part of
compensation that were outstanding as at 30 June 2021.
32
Patrys Limited
Directors' report
30 June 2021
The number of options over ordinary shares granted to and vested by Directors and other Key Management Personnel as
part of compensation during the year ended 30 June 2021 are set out below:
Name
James Campbell
John Read
Susan Jones
Michael Stork
Pamela Klein
Number of
Number of
Number of
Number of
options
options
options
options
granted
granted
during the
during the
vested and
exercisable
during the
vested and
exercisable
during the
year
year
year
year
30 June 2021 30 June 2020 30 June 2021 30 June 2020
11,000,000
1,200,000
800,000
800,000
800,000
-
-
-
-
4,000,000
9,000,000
2,000,000
2,000,000
2,000,000
2,500,000
15,000,000
2,000,000
2,000,000
2,000,000
2,500,000
Details of options over ordinary shares granted, vested and lapsed for Directors and other Key Management Personnel as
part of compensation during the year ended 30 June 2021 are set out below:
Name
Grant date
Vesting date
Number of Value of
options
granted
options
granted
$
Value of
options
vested
$
Number of Value of
options
lapsed
$
options
lapsed
James Campbell 15/12/2020
James Campbell 15/12/2020
15/12/2020
John Read
15/12/2020
John Read
15/12/2020
Susan Jones
15/12/2020
Susan Jones
15/12/2020
Michael Stork
15/12/2020
Michael Stork
15/12/2020
Pamela Klein
15/12/2020
Pamela Klein
15/12/2021
15/12/2022
15/12/2021
15/12/2022
15/12/2021
15/12/2022
15/12/2021
15/12/2022
15/12/2021
15/12/2022
5,500,000
5,500,000
600,000
600,000
400,000
400,000
400,000
400,000
400,000
400,000
68,475
74,525
7,470
8,130
4,980
5,420
4,980
5,420
4,980
5,420
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Additional information
The earnings of the Group for the five years to 30 June 2021 are summarised below:
2021
$
2020
$
2019
$
2018
$
2017
$
Revenue and other income
Net profit/(loss) before tax
Net profit/(loss) after tax
1,338,377
(4,062,920)
(4,062,920)
772,844
(2,748,539)
(2,748,539)
3,844,365
(411,326)
(411,326)
520,525
(2,497,252)
(2,497,252)
531,729
(1,057,876)
(1,057,876)
The factors that are considered to affect total shareholders return ('TSR') are summarised below:
Share price at financial year start ($)
Share price at financial year end ($)
Basic earnings per share (cents per share)
0.0120
0.0560
(0.2524)
0.0300
0.0120
(0.2566)
0.0580
0.0300
(0.0384)
0.0100
0.0580
(0.2653)
0.0100
0.0100
(0.1420)
2021
2020
2019
2018
2017
33
Patrys Limited
Directors' report
30 June 2021
Additional disclosures relating to key management personnel
Shareholding
The number of shares in the company held during the financial year by each Director and other members of Key Management
Personnel of the Group, including their related parties, is set out below:
Balance at Received
as part of
the start of
the year
remuneration Additions
Disposals/
other
Balance at
the end of
the year
Ordinary shares
James Campbell
John Read
Suzy Jones
Michael Stork
Pamela Klein
29,546
7,721,911
3,000,000
98,773,814
250,000
109,775,271
-
-
-
-
-
-
8,402,876
2,438,395
-
-
-
10,841,271
-
-
-
-
-
-
8,432,422
10,160,306
3,000,000
98,773,814
250,000
120,616,542
Option holding
The number of options over ordinary shares in the company held during the financial year by each Director and other
members of key management personnel of the Group, including their personally related parties, is set out below:
Options over ordinary shares
James Campbell
John Read
Suzy Jones
Michael Stork
Pamela Klein
Balance at
the start of
the year
Granted
Exercised
Additions
Balance at
the end of
the year
25,000,000
6,000,000
4,000,000
4,000,000
4,500,000
43,500,000
11,000,000
1,200,000
800,000
800,000
800,000
14,600,000
(6,000,000)
-
-
-
-
(6,000,000)
800,959
812,799
-
-
-
1,613,758
30,800,959
8,012,799
4,800,000
4,800,000
5,300,000
53,713,758
This concludes the remuneration report, which has been audited.
Shares under option
Unissued ordinary shares of Patrys Limited under option at the date of this report are as follows:
Grant date
20 December 2016
19 April 2017
15 March 2018
15 March 2018
1 June 2018
22 November 2018
15 March 2019
12 September 2019
1 October 2019
15 March 2020
8 May 2020
15 December 2020
15 December 2020
5 August 2020 and 21 December 2020
15 December 2020 to 17 December 2020
Expiry date
24 November 2021
19 April 2022
15 March 2023
1 July 2022
18 April 2023
22 November 2023
15 March 2024
31 August 2024
1 October 2024
15 March 2025
8 May 2025
18 December 2024
18 December 2024
5 August 2023
15 December 2023
34
Exercise
price
Number
under option
$0.0072
$0.0072
$0.0613
$0.0613
$0.0200
$0.0350
$0.0290
$0.0290
$0.0350
$0.0220
$0.0170
$0.0270
$0.0270
$0.0240
$0.0400
9,000,000
250,000
500,000
2,500,000
2,500,000
32,000,000
3,000,000
1,500,000
4,000,000
2,750,000
250,000
22,100,000
500,000
127,833,569
129,723,933
338,407,502
Patrys Limited
Directors' report
30 June 2021
No person entitled to exercise the options had or has any right by virtue of the option to participate in any share issue of the
company or of any other body corporate.
Shares issued on the exercise of options
The following ordinary shares of Patrys Limited were issued during the year ended 30 June 2021 and up to the date of this
report on the exercise of options granted:
Date options granted
24/11/2016
05/08/2020
15/12/2020
24/11/2016
24/11/2016
05/08/2020
24/11/2016
Exercise
price
Number of
shares issued
$0.0072
$0.0240
$0.0400
$0.0072
$0.0072
$0.0240
$0.0072
6,000,000
40,185
926
4,000,000
5,000,000
53,333
2,500,000
17,594,444
Indemnity and insurance of officers
The company has indemnified the Directors and executives of the company for costs incurred, in their capacity as a Director
or executive, for which they may be held personally liable, except where there is a lack of good faith.
During the financial year, the company paid a premium in respect of a contract to insure the directors and executives of the
company against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits
disclosure of the nature of the liability and the amount of the premium.
Indemnity and insurance of auditor
The company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the
company or any related entity against a liability incurred by the auditor.
During the financial year, the company has not paid a premium in respect of a contract to insure the auditor of the company
or any related entity.
Proceedings on behalf of the company
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf
of the company, or to intervene in any proceedings to which the company is a party for the purpose of taking responsibility
on behalf of the company for all or part of those proceedings.
Non-audit services
The company may decide to employ the auditor on assignments additional to their statutory audit duties where the auditor’s
expertise and experience with the company and/or the Group are important.
Details of the amount paid or payable to the auditor (BDO Audit Pty Ltd) for audit and non-audit services provided during the
year are set out in note 18.
The Board of Directors has considered the position and, in accordance with the advice received from the Audit and Risk
Committee, is satisfied that the provision of the non-audit services is compatible with the general standard of independence
for auditors imposed by the Corporations Act 2001 for the following reasons:
●
All non-audit services have been reviewed by the Audit and Risk Committee to ensure they do not impact the impartiality
and objectivity of the auditor.
None of the services undermine the general principles relating to auditor independence as set out in Professional
Statement APES 110, including reviewing or auditing the auditor’s own work, acting in a management or a decision-
making capacity for the company, acting as advocate for the company or jointly sharing economic risk and rewards.
●
35
Patrys Limited
Directors' report
30 June 2021
Officers of the company who are former partners of BDO Audit Pty Ltd
There are no officers of the company who are former partners of BDO Audit Pty Ltd.
Auditor's independence declaration
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out
immediately after this Directors' report.
Auditor
BDO Audit Pty Ltd continues in office in accordance with section 327 of the Corporations Act 2001.
This report is made in accordance with a resolution of Directors, pursuant to section 298(2)(a) of the Corporations Act 2001.
On behalf of the Directors
___________________________
Mr. John Read
Chairman
25 August 2021
36
Tel: +61 3 9603 1700
Fax: +61 3 9602 3870
www.bdo.com.au
Collins Square, Tower Four
Level 18, 727 Collins Street
Melbourne VIC 3008
GPO Box 5099 Melbourne VIC 3001
Australia
DECLARATION OF INDEPENDENCE BY TIM FAIRCLOUGH TO THE DIRECTORS OF PATRYS LIMITED
As lead auditor of Patrys Limited for the year ended 30 June 2021, I declare that, to the best of my
knowledge and belief, there have been:
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Patrys Limited and the entities it controlled during the period.
Tim Fairclough
Director
BDO Audit Pty Ltd
Melbourne, 25 August 2021
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members
of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent
member firms. Liability limited by a scheme approved under Professional Standards Legislation.
Patrys Limited
Statement of profit or loss and other comprehensive income
For the year ended 30 June 2021
Revenue
Expenses
Research & development expenses
Administration & management expenses
Loss before income tax expense
Note 30 June 2021 30 June 2020
Consolidated
$
$
5
1,338,377
772,844
(2,861,902)
(2,539,395)
(1,367,988)
(2,153,395)
(4,062,920)
(2,748,539)
Income tax expense
7
-
-
Loss after income tax expense for the year attributable to the Owners of
Patrys Limited
(4,062,920)
(2,748,539)
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
(15,777)
(15,777)
-
-
Total comprehensive income for the year attributable to the Owners of Patrys
Limited
(4,078,697)
(2,748,539)
Basic earnings per share
Diluted earnings per share
Cents
Cents
25
25
(0.2524)
(0.2524)
(0.2566)
(0.2566)
The above statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes
38
Patrys Limited
Statement of financial position
As at 30 June 2021
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Other financial assets
Total current assets
Non-current assets
Property, plant and equipment
Intangibles
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Employee benefits
Total current liabilities
Non-current liabilities
Employee benefits
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
Note 30 June 2021 30 June 2020
Consolidated
$
$
8
9
10
11
6,916,604
1,277,326
4,210,423
12,404,353
3,981,210
679,955
182,912
4,844,077
3,921
483,750
487,671
3,598
528,750
532,348
12,892,024
5,376,425
12
631,665
218,199
849,864
313,249
160,189
473,438
-
-
24,946
24,946
849,864
498,384
12,042,160
4,878,041
13
14
78,112,036
1,448,512
(67,518,388)
67,086,513
1,252,973
(63,461,445)
12,042,160
4,878,041
The above statement of financial position should be read in conjunction with the accompanying notes
39
Patrys Limited
Statement of changes in equity
For the year ended 30 June 2021
Consolidated
Balance at 1 July 2019
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:
Share based payments
Share issue
Share issue costs/adjustment
Transfer from option reserve to issued capital
Reallocation of value of expired and cancelled equity
Issued
capital
$
Reserves
$
Accumulated
losses
$
Total equity
$
67,066,992
953,741
(60,724,279)
7,296,454
-
-
-
-
-
-
(2,748,539)
-
(2,748,539)
-
(2,748,539)
(2,748,539)
-
54,000
(35,926)
1,447
-
312,052
-
-
(1,447)
(11,373)
-
-
-
-
11,373
312,052
54,000
(35,926)
-
-
Balance at 30 June 2020
67,086,513
1,252,973
(63,461,445)
4,878,041
Consolidated
Balance at 1 July 2020
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:
Share based payments
Share issue
Share issue costs
Transfer from option reserve to issued capital
Reallocation of value of expired and cancelled equity
Issued
capital
$
Reserves
$
Accumulated
losses
$
Total equity
$
67,086,513
1,252,973
(63,461,445)
4,878,041
-
-
-
-
(15,777)
(4,062,920)
-
(4,062,920)
(15,777)
(15,777)
(4,062,920)
(4,078,697)
-
11,837,744
(866,026)
53,805
-
271,098
-
-
(53,805)
(5,977)
-
-
-
-
5,977
271,098
11,837,744
(866,026)
-
-
Balance at 30 June 2021
78,112,036
1,448,512
(67,518,388)
12,042,160
The above statement of changes in equity should be read in conjunction with the accompanying notes
40
Patrys Limited
Statement of cash flows
For the year ended 30 June 2021
Cash flows from operating activities
Payments to suppliers and employees (inclusive of GST)
Receipts from interest and other income
Receipts from R&D tax incentive
Receipts from government grants
Receipts from licensing income
Note 30 June 2021 30 June 2020
Consolidated
$
$
(4,623,536)
2,598
626,781
117,000
-
(3,324,418)
73,752
672,143
55,498
27,500
Net cash used in operating activities
24
(3,877,157)
(2,495,525)
Cash flows from investing activities
Payments for property, plant and equipment
Investment in term deposits
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of shares
Share issue transaction costs
Proceeds from exercise of options
Net cash from financing activities
(3,887)
(4,000,000)
(4,003,887)
11,577,462
(636,226)
110,281
11,051,517
13
-
-
-
-
-
-
-
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Effects of exchange rate changes on cash and cash equivalents
3,170,473
3,981,210
(235,079)
(2,495,525)
6,473,840
2,895
Cash and cash equivalents at the end of the financial year
8
6,916,604
3,981,210
The above statement of cash flows should be read in conjunction with the accompanying notes
41
Patrys Limited
Notes to the financial statements
30 June 2021
Note 1. General information
The financial statements cover Patrys Limited as a Group consisting of Patrys Limited and the entities it controlled at the end
of, or during, the year. The financial statements are presented in Australian dollars, which is Patrys Limited's functional and
presentation currency.
Patrys Limited is a listed public company limited by shares, incorporated and domiciled in Australia.
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 25 August 2021. 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.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial
performance or position of the Group.
Going concern
It is noted that for 2021 financial year, the Group incurred a loss from continuing operations after income tax of $4,062,920
(2020: $2,748,539) and had consolidated net operating cash outflows of $3,877,157 (2020: $2,495,525).
The financial statements have been prepared on the basis that the Group is a going concern, which contemplates normal
business activity, realisation of assets and the settlement of liabilities in the normal course of business for the following
reasons:
●
●
●
At 30 June 2021, the Group had net current assets of $11,554,489 (2020: $4,370,639);
Cash flow forecasts prepared by management demonstrate that the Group has sufficient funds to meet commitments
over the next twelve months;
At 30 June 2021, the Group recognised a receivable of $1,194,459 from the R&D tax incentive, which is expected to be
received in the first half of the 2022 financial year.
The Directors have considered the impacts of COVID-19 that are being felt around the world, and while there has been
slippage of timelines, particularly for media supply chain and activity based in academic institutions, the company is on track
to commence a phase 1 study in late 2022.
Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as appropriate
for for-profit oriented entities. These financial statements also comply with International Financial Reporting Standards as
issued by the International Accounting Standards Board ('IASB').
Historical cost convention
The financial statements have been prepared under the historical cost convention, except for, where applicable, the
revaluation of financial assets and liabilities at fair value through profit or loss.
42
Patrys Limited
Notes to the financial statements
30 June 2021
Note 2. Significant accounting policies (continued)
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.
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 21.
Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Patrys Limited ('company' or
'parent entity') as at 30 June 2021 and the results of all subsidiaries for the year then ended. Patrys Limited 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.
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 Patrys Limited's functional and presentation currency.
Foreign currency transactions
Foreign currency transactions are translated into Australian dollars using the exchange rates prevailing at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation
at financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in
profit or loss.
Foreign operations
The assets and liabilities of foreign operations are translated into Australian dollars using the exchange rates at the reporting
date. The revenues and expenses of foreign operations are translated into Australian dollars using the average exchange
rates, which approximate the rates at the dates of the transactions, for the period. All resulting foreign exchange differences
are recognised in other comprehensive income through the foreign currency reserve in equity.
The foreign currency reserve is recognised in profit or loss when the foreign operation or net investment is disposed of.
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 individual company in the group, 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.
Current and non-current classification
Assets and liabilities are presented in the Statement of financial position based on current and non-current classification.
43
Patrys Limited
Notes to the financial statements
30 June 2021
Note 2. Significant accounting policies (continued)
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.
Impairment of non-financial assets
Non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount
exceeds its recoverable amount.
As a part of the impairment assessment for June 2021, management reviewed changes to laws and regulations affecting the
IP, technological obsolescence, issues with funding commitment, along with a host of other indicators such as market value
review, adverse movements in market rates of return and change in use of asset or the manner in which it used. There are
no indicators of impairment of the asset for the year ended 30 June 2021 as a result of this review.
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.
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 2021. 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.
44
Patrys Limited
Notes to the financial statements
30 June 2021
Note 3. Critical accounting judgements, estimates and assumptions (continued)
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 either the Binomial or Black-Scholes
model taking into account the terms and conditions upon which the instruments were granted. The accounting estimates and
assumptions relating to equity-settled share-based payments would have no impact on the carrying amounts of assets and
liabilities within the next annual reporting period but may impact profit or loss and equity.
Estimation of useful lives of assets
The Group determines the estimated useful lives and related depreciation and amortisation charges for its property, plant
and equipment and finite life intangible assets. The useful lives could change significantly as a result of technical innovations
or some other event. The depreciation and amortisation charge will increase where the useful lives are less than previously
estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold will be written off or written
down.
Income tax
The Group is subject to income taxes in the jurisdictions in which it operates. Significant judgement is required in determining
the provision for income tax, including the calculation of the R&D tax incentive for the period. There are many transactions
and calculations undertaken during the ordinary course of business for which the ultimate tax determination is uncertain. The
Group recognises liabilities for anticipated tax audit issues based on the Group's current understanding of the tax law, and
receivables for the expected R&D tax incentive receivable for the year. Where the final tax outcome of these matters is
different from the carrying amounts, such differences will impact the current and deferred tax provisions in the period in which
such determination is made.
COVID-19 pandemic
Judgement has been exercised in considering the impacts that the COVID-19 pandemic has had, or may have, on the Group
based on known information. Certain impacts of the COVID-19 pandemic are beyond the control of the company and their
future impact, if any, cannot be determined at this time.
Note 4. Operating segments
Identification of reportable operating segments
A segment is a component of the consolidated entity that engages in business activities to provide products or services within
a particular economic environment. The consolidated entity operates in one business segment, being the conduct of research
and development activities in the biopharmaceutical sector. The Board of Directors assess the operating performance of the
group based on management reports that are prepared on this basis. The group has established activities in more than one
geographical area, however these activities support the research and development conducted by the consolidated entity and
are considered immaterial for the purposes of segment reporting. The group invests excess funds in short term deposits but
this is not regarded as being a separate segment.
Accounting policy for operating segments
Operating segments are presented using the 'management approach', where the information presented is on the same basis
as the internal reports provided to the managing director who is the Chief Operating Decision Maker ('CODM'). The CODM
is responsible for the allocation of resources to operating segments and assessing their performance.
Note 5. Revenue
Licensing income
R&D tax incentive income
Interest income
Government grants & incentives
Total Revenue
Consolidated
30 June 2021 30 June 2020
$
$
27,500
1,188,581
5,296
117,000
27,500
623,197
59,891
62,256
1,338,377
772,844
45
Patrys Limited
Notes to the financial statements
30 June 2021
Note 5. Revenue (continued)
Accounting policy for revenue recognition
The Group recognises revenue as follows:
Licensing income
Licensing income is recognised over the period to which the license pertains.
R&D tax incentive income
Research and development tax incentive is recognised in the period in which the expenditure is incurred, giving rise to the
tax benefit.
Government grant
Government grant is recognised when the company has fulfilled all its obligations associated with the grant agreement.
Interest
Interest revenue is recognised as interest accrues.
Note 6. Expenses
Loss before income tax includes the following specific expenses:
Depreciation
Plant and equipment
Amortisation
License and registered patents
Total depreciation and amortisation
Operating expenses
Research and development expenses
Employee salary and benefit expense
Defined contribution superannuation expense
Salary and employee benefit expenses
Total employment expenses
Share based payments expense
Share based payments (option expense and payment to consultant)
Consolidated
30 June 2021 30 June 2020
$
$
3,564
2,786
45,000
45,000
48,564
47,786
2,861,902
1,367,988
49,922
881,915
46,656
860,828
931,837
907,484
271,098
366,052
46
Patrys Limited
Notes to the financial statements
30 June 2021
Note 7. Income tax expense
Numerical reconciliation of income tax expense and tax at the statutory rate
Loss before income tax expense
Tax at the statutory tax rate of 30%
Tax effect amounts which are not deductible/(taxable) in calculating taxable income:
Effect of revenue that is not assessable in determining taxable loss
Effect of expenses that are not deductible in determining taxable loss
Deferred tax assets not brought to account
Income tax expense
Deferred tax assets not recognised
Deferred tax assets not recognised comprises temporary differences attributable to:
Tax losses - revenue
Deductible temporary differences
Total deferred tax assets not recognised
Consolidated
30 June 2021 30 June 2020
$
$
(4,062,920)
(2,748,539)
(1,218,876)
(824,562)
(303,019)
877,321
644,574
(206,570)
546,282
484,850
-
-
Consolidated
30 June 2021 30 June 2020
$
$
16,456,448
389,130
15,829,023
348,772
16,845,578
16,177,795
The benefit of these deferred tax assets (not recognised) will only be obtained if:
(i) the entities derive future assessable income of a nature and of an amount sufficient to enable the benefits from the
deduction for losses to be realised;
(ii) the entities continue to comply with the conditions for deductibility imposed by the law;
(iii) no changes in tax legislation adversely affect the entities in realising the relevant benefits from deduction for the losses.
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.
47
Patrys Limited
Notes to the financial statements
30 June 2021
Note 7. Income tax expense (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 8. Current assets - cash and cash equivalents
Cash at bank
Consolidated
30 June 2021 30 June 2020
$
$
6,916,604
3,981,210
The Group's exposure to interest rate and foreign currency risk is discussed in note 16.
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 of three months or less that are readily convertible to known amounts of cash and
which are subject to an insignificant risk of changes in value.
In addition, as at 30 June 2021, the company held a total of $4 million in cash deposits with a maturity term of 6 months and
9 months (note 10).
Note 9. Current assets - trade and other receivables
Accrued revenue
Trade receivables
Research & Development incentive receivable
Other receivables
Consolidated
30 June 2021 30 June 2020
$
$
25,208
27,500
1,194,459
30,159
25,208
-
632,659
22,088
1,277,326
679,955
During the period, the Group recognised an accrual for the Research & Development (R&D) tax incentive receivable. Under
this regime, as Patrys has an aggregated annual turnover of under $20 million, it is entitled to a refundable R&D credit of
43.5% (2020: 43.5%) on the eligible R&D expenditure incurred on eligible R&D activities.
The 43.5% (2020: 43.5%) refundable R&D tax offset is accounted for under AASB 120 Accounting for Government Grants
and Disclosure of Government Assistance and is recorded as income in the Statement of Profit or Loss & Other
Comprehensive Income.
48
Patrys Limited
Notes to the financial statements
30 June 2021
Note 10. Current assets - other financial assets
Prepayments - Insurance and other expenses
Term deposits
Consolidated
30 June 2021 30 June 2020
$
$
210,423
4,000,000
182,912
-
4,210,423
182,912
As at 30 June 2021, the company held a total of $4 million in cash deposits with a maturity term of 6 months and 9 months.
Note 11. Non-current assets - intangibles
Intellectual property - at cost
Less: Accumulated amortisation
Consolidated
30 June 2021 30 June 2020
$
$
720,000
(236,250)
720,000
(191,250)
483,750
528,750
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 2019
Amortisation expense
Balance at 30 June 2020
Amortisation expense
Balance at 30 June 2021
Intellectual
property
$
573,750
(45,000)
528,750
(45,000)
483,750
In 2016 the Group acquired Nucleus intellectual property. The acquisition provides Patrys with licence rights to a portfolio of
novel anti-DNA antibodies that penetrate cell nuclei. This novel pre-clinical oncology asset and platform has multiple potential
applications to treat a range of cancers.
Intangible assets comprise licences, intellectual property, trademarks and registered patents and have a finite useful life.
Amortisation has been historically calculated using straight line method over the estimated useful life, which ranges from 5
to 20 years. The Group amortises the Nucleus intellectual property based on an estimated useful life of 16 years.
Amortisation and impairment expense is included in the line item ‘research and development’ in the Statement of Profit or
Loss & Other Comprehensive Income.
Intellectual property which includes platform technology and product related intellectual property is reviewed on a regular
basis and where a decision has been made not to pursue a product, the remaining value recorded as an asset is impaired.
At balance date, the directors also review the intellectual property portfolio to determine whether there are any indicators of
impairment related to intellectual property.
49
Patrys Limited
Notes to the financial statements
30 June 2021
Note 11. Non-current assets - intangibles (continued)
Accounting policy for intangible assets
Intangible assets acquired as part of a business combination, other than goodwill, are initially measured at their fair value at
the date of the acquisition. Intangible assets acquired separately are initially recognised at cost. Indefinite life intangible
assets are not amortised and are subsequently measured at cost less any impairment. Finite life intangible assets are
subsequently measured at cost less amortisation and any impairment. The gains or losses recognised in profit or loss arising
from the derecognition of intangible assets are measured as the difference between net disposal proceeds and the carrying
amount of the intangible asset. The method and useful lives of finite life intangible assets are reviewed annually. Changes in
the expected pattern of consumption or useful life are accounted for prospectively by changing the amortisation method or
period.
Intellectual property
Significant costs associated with intellectual property are deferred and amortised on a straight-line basis over the period of
their expected benefit, being their finite life of 16 years.
Note 12. Current liabilities - trade and other payables
Trade payables
Other creditors and accruals
Consolidated
30 June 2021 30 June 2020
$
$
297,876
333,789
77,973
235,276
631,665
313,249
Refer to note 16 for further information on financial instruments.
Accounting policy for trade and other payables
These amounts 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 and are usually paid within 30 days of recognition.
Note 13. Equity - issued capital
Ordinary shares - fully paid
1,815,473,016 1,071,318,226
78,112,036
67,086,513
Consolidated
30 June 2021 30 June 2020 30 June 2021 30 June 2020
Shares
Shares
$
$
50
Patrys Limited
Notes to the financial statements
30 June 2021
Note 13. Equity - issued capital (continued)
Movements in ordinary share capital
Details
Date
Shares
Issue price
$
Balance
Share issue
Share issue costs
Transfer from option reserve to issued capital
Expiration of shares from share loan plan
1 July 2019
1 July 2019
30 June 2020
30 June 2020
30 June 2020
Balance
Share issue under entitlement offer
Issue of shares upon on exercise of options
Share issue under equity placement
Issue of shares under entitlement offer
Issue of shares in settlement of placement fee
Issue of shortfall shares under entitlement offer
Issue of shares upon on exercise of options
Issue of shares upon on exercise of options
Issue of shares upon on exercise of options
Issue of shares upon on exercise of options
Issue of shares upon on exercise of options
Transfer from option reserve to issued capital
Expiration of shares from share loan plan
Share issue costs
30 June 2020
5 August 2020
12 October 2020
16 November 2020
15 December 2020
15 December 2020
17 December 2020
17 February 2021
17 February 2021
3 March 2021
28 April 2021
28 April 2021
30 June 2021
30 June 2021
30 June 2021
1,069,757,969
2,076,923
-
-
(516,666)
1,071,318,226
357,530,827
6,000,000
125,000,000
120,428,183
7,500,000
118,926,336
40,185
926
4,000,000
5,000,000
53,333
-
(325,000)
-
Balance
30 June 2021
1,815,473,016
$0.0260
$0.0000
$0.0000
$0.0000
$0.0120
$0.0072
$0.0200
$0.0200
$0.0200
$0.0200
$0.0240
$0.0400
$0.0072
$0.0072
$0.0239
$0.0000
$0.0000
$0.0000
67,066,992
54,000
(35,926)
1,447
-
67,086,513
4,290,371
43,200
2,500,000
2,408,564
150,000
2,378,527
964
37
28,800
36,000
1,280
53,806
-
(866,026)
78,112,036
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the company in proportion
to the number of and amounts paid on the shares held.
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.
Capital risk management
The Group's objective when managing capital is to safeguard its ability to continue as a going concern, so that it can provide
returns for shareholders and benefits for other stakeholders and to maintain an optimum capital structure to reduce the cost
of capital.
Capital is regarded as total equity, as recognised in the consolidated Statement of Financial Position, plus net debt. Net debt
is calculated as total borrowings less cash and cash equivalents.
In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return
capital to shareholders, issue new shares or sell assets to reduce debt.
The Group would look to raise capital when an opportunity to invest in a business or company was seen as value adding
relative to the current company's share price at the time of the investment.
The capital risk management policy remains unchanged from the 30 June 2020 Annual Report.
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.
51
Patrys Limited
Notes to the financial statements
30 June 2021
Note 14. Equity - reserves
Foreign currency reserve
Share options reserve
Share loan plan reserve
Other reserves
Consolidated
30 June 2021 30 June 2020
$
$
(34,571)
1,300,664
2,419
180,000
(18,794)
1,083,371
8,396
180,000
1,448,512
1,252,973
Foreign currency reserve
Exchange differences relating to translation from functional currencies of the Group’s foreign controlled entities into Australian
Dollars are bought to account by entries made directly to the foreign currency translation reserve.
Share loan plan reserve
The share loan plan reserve arises on issue of equity under the Loan Share Plan or the Executive Share Option Plan to
executives and senior employees. Amounts are transferred out of the reserves and into issued capital when the loans are
repaid or the options are exercised. Amounts are transferred to accumulated losses when the shares or options are cancelled.
Further information about share based payments to Directors and key management personnel is made at note 26 of the
financial statements.
Share based payment reserve
The equity settled share based payment reserves arise on issue of options under the Employee Share Based Payment plan
to executives and senior employees. Amounts are transferred out of the reserves and into issued capital when the options
are converted to shares. Amounts are transferred to accumulated losses when the shares or options are cancelled. Further
information about share based payments to Directors and key management personnel is provided at note 26 of the financial
statements.
Other reserves
The other reserve consists of Tranche 3 shares for the acquisition of Nucleus Intellectual Property. When the Group meets
the relevant milestone and the shares are issued, the amount is transferred out of the reserve and into issued capital.
Movements in reserves
Movements in each class of reserve during the current and previous financial year are set out in the Statement of Changes
In Equity.
52
Patrys Limited
Notes to the financial statements
30 June 2021
Note 14. Equity - reserves (continued)
Movements in reserves
Movements in each class of reserve during the current and previous financial year are set out below:
Consolidated
Share loan
plan reserve
$
Share option
reserve
$
Other reserve
$
Foreign
exchange
translation
reserve
$
Total
$
Balance at 1 July 2019
Reallocation of value of expired loan and
equity
Share based payments
Transfer from share option reserve to issued
capital
Balance at 30 June 2020
Foreign currency translation
Re-allocation of value of expired options during
the period
Share based payments
Transfer from share option reserve to issued
capital
19,769
772,766
180,000
(18,794)
953,741
(11,373)
-
-
312,052
-
(1,447)
-
-
-
-
-
-
(11,373)
312,052
(1,447)
8,396
-
1,083,371
-
180,000
-
(18,794)
(15,777)
1,252,973
(15,777)
(5,977)
-
-
271,098
-
(53,805)
-
-
-
-
-
-
(5,977)
271,098
(53,805)
Balance at 30 June 2021
2,419
1,300,664
180,000
(34,571)
1,448,512
Note 15. Equity - dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Note 16. Financial instruments
Financial risk management objectives
The Group’s treasury function monitors and manages the financial risks relating to the operations of the Group through
internal risk reports which analyse exposures by degree and magnitude of risks. These risks include market risk (including
currency risk, fair value interest rate risk and price risk), credit risk and liquidity risk. There have been no changes to these
risks since the previous financial year.
The Board of Directors ensures that the Group maintains a competent management structure capable of defining, analysing,
measuring and reporting on the effective control of risk inherent in the Group’s underlying financial activities and the
instruments used to manage risk. Key financial risks including interest rate risk and foreign currency risk are reviewed by
management on a regular basis and are communicated to the Board so that it can evaluate and impose its oversight
responsibility. The Group does not enter into or trade financial instruments, including derivative financial instruments, for
speculative purposes. The company and the Group have a policy regarding foreign exchange risk management. This and
other financial risks are managed prudently by the Board and the Audit and Risk Committee.
53
Patrys Limited
Notes to the financial statements
30 June 2021
Note 16. Financial instruments (continued)
Capital risk management
The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while
maximising and optimisation of the return to stakeholders through the optimisation of the debt and equity balance.
The capital structure of the Group consists of cash and cash equivalents and equity attributable to equity holders of the
parent, comprising issued capital, reserves and retained earnings as disclosed in note 13 and note 14, respectively. The
Group operates globally, primarily through subsidiary companies operating in markets where they support the research and
development activities of the consolidated entity. None of the Group’s entities are subject to externally imposed capital
requirements.
Operating cash flows are used to maintain and expand the Group’s assets.
Market risk
Foreign currency risk
The Group’s activities expose it primarily to the financial risks of changes in foreign currency rates. The Group’s exposure to
foreign currency is predominately in US dollars, Pound Sterling and Euros. The Group has maintained cash in US dollars,
Pound Sterling and Euros to cover a portion of its anticipated US dollar and Euro expenditures.
The Group undertakes certain transactions denominated in foreign currencies, hence exposures to exchange rate fluctuation
arise. Exchange rate exposures are managed within approved policy parameters. The Group manages the currency risk by
monitoring the trend of the US dollar, Pound Sterling and Euro. The Group maintains US dollar, Pound Sterling and Euro
bank accounts to cover a portion of its anticipated expenditures in the respective foreign currencies.
The carrying amount of the Group's foreign currency denominated financial assets and financial liabilities at the reporting
date were as follows:
Consolidated
US dollars
Euros
Pound Sterling
Assets
Liabilities
30 June 2021 30 June 2020 30 June 2021 30 June 2020
$
$
$
$
1,709,583
123,760
3,411
2,034,880
2,859
14,199
216,533
-
-
14,582
-
-
1,836,754
2,051,938
216,533
14,582
Consolidated - 30 June 2021
% change
AUD strengthened
Effect on loss
before tax
Effect on
equity
AUD weakened
Effect on loss
before tax
Effect on
equity
% change
US Dollars
Euros
Pound Sterling
10%
10%
10%
(135,732)
(11,251)
(310)
(135,732)
(11,251)
(310)
(10%)
(10%)
(10%)
165,894
13,751
379
165,894
13,751
379
(147,293)
(147,293)
180,024
180,024
Consolidated - 30 June 2020
% change
AUD strengthened
Effect on loss
before tax
Effect on
equity
AUD weakened
Effect on loss
before tax
Effect on
equity
% change
US Dollars
Euros
Pound Sterling
10%
10%
10%
(183,663)
(260)
(1,291)
(183,663)
(260)
(1,291)
(10%)
(10%)
(10%)
224,478
318
1,577
224,478
318
1,577
(185,214)
(185,214)
226,373
226,373
54
Patrys Limited
Notes to the financial statements
30 June 2021
Note 16. Financial instruments (continued)
Price risk
Price risk is the risk that future cashflows derived from financial instruments will be changed as a result of a market price
movement, other than foreign currency rates and interest rates. The Group is not exposed to any material commodity price
risks.
Interest rate risk
The Group's exposure to market interest rates relates primarily to the Group's short term deposits held and deposits at call.
The variance in market interest rates on interest income is not material.
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the
Group. The Group has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral
where appropriate as a means of mitigating the risk of financial loss from defaults.
The Group has adopted a lifetime expected loss allowance in estimating expected credit losses to trade receivables through
the use of a provisions matrix using fixed rates of credit loss provisioning. These provisions are considered representative
across all customers of the Group based on recent sales experience, historical collection rates and forward-looking
information that is available.
In addition, receivable balances are monitored on an ongoing basis with the result that the Group's exposure to bad debts is
not significant. There are no significant concentrations of credit risk within the Group and financial instruments are spread
amongst a number of financial institutions to minimise the risk of default of counterparties.
Generally, trade receivables are written off when there is no reasonable expectation of recovery. Indicators of this include
the failure of a debtor to engage in a repayment plan, no active enforcement activity and a failure to make contractual
payments for a period greater than 1 year.
Liquidity risk
Liquidity risk is the risk that the Group will not be able to pay its debts as and when they fall due. The Group has no borrowings
at reporting date and the Directors ensure that the cash on hand is sufficient to meet the commitments of the Group at all
times during the research and development phase.
The Group manages liquidity risk by monitoring forecast cash flows and ensuring that adequate cash and also through
assessment of available funding to identify risks to the cash position of the business.
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.
Consolidated - 30 June 2021
Non-derivatives
Non-interest bearing
Trade payables
Other payables
Total non-derivatives
Weighted
average
interest rate
%
1 year or less
$
Between 1
and 2 years
$
Between 2
and 5 years
$
Over 5 years
$
Remaining
contractual
maturities
$
-
-
297,876
333,789
631,665
-
-
-
-
-
-
-
-
-
297,876
333,789
631,665
55
Patrys Limited
Notes to the financial statements
30 June 2021
Note 16. Financial instruments (continued)
Consolidated - 30 June 2020
Non-derivatives
Non-interest bearing
Trade payables
Other payables
Total non-derivatives
Weighted
average
interest rate
%
1 year or less
$
Between 1
and 2 years
$
Between 2
and 5 years
$
Over 5 years
$
Remaining
contractual
maturities
$
-
-
77,973
235,726
313,699
-
-
-
-
-
-
-
-
-
77,973
235,726
313,699
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.
Note 17. Key management personnel disclosures
Directors
The following persons were Directors of Patrys Limited during the financial year:
Mr. John Read
Mr. Michael Stork
Ms. Suzy Jones
Dr. James Campbell
Dr. Pamela M. Klein
Other key management personnel
The following person also had the authority and responsibility for planning, directing and controlling the major activities of the
Group, directly or indirectly, during the financial year:
Ms. Melanie Leydin
Compensation
The aggregate compensation made to Directors and other members of key management personnel of the Group is set out
below:
Short-term employee benefits
Post-employment benefits
Long-term benefits
Share-based payments
Consolidated
30 June 2021 30 June 2020
$
$
907,446
21,003
6,451
112,568
712,657
21,003
6,600
173,156
1,047,468
913,416
56
Patrys Limited
Notes to the financial statements
30 June 2021
Note 18. Remuneration of auditors
During the financial year the following fees were paid or payable for services provided by the auditor of the Company:
Audit services -
Audit or review of the financial statements
Other services -
Review and lodgement of corporate tax returns
Consolidated
30 June 2021 30 June 2020
$
$
55,422
58,311
14,500
26,403
69,922
84,714
Note 19. Commitments
Capital expenditure commitments
There was no capital expenditure contracted for at reporting date but not provided for in the accounts.
Licence agreement
Patrys has entered into a number of licence agreements in respect of technologies and assets as outlined below:
Patrys - Debiovision - Option License and Assignment Agreement
In August of 2009, Patrys acquired the rights to product SC-1 (renamed PAT-SC1) from Debiovision Inc. Once developed,
Patrys royalties will be payable to Debiovision on the sale of products that derive from PAT-SC1. These royalty rates are
typical in the industry for transactions of this nature.
Nucleus Therapeutics – Yale University – License, Commercialisation and Development Agreement
In March of 2016, Patrys acquired the private company Nucleus Therapeutics Pty Ltd, in order to obtain the global license
for the development as anti-cancer agents the antibodies 3E10 and 5C6 from Yale University. Once developed, certain
milestone payments and royalties will be payable to Yale University regarding products that derive from 3E10 and/or 5C6.
These milestones and royalties are typical in the industry for transactions of this nature.
Nucleus Therapeutics – Sigma Aldrich Pty Ltd Non-Exclusive Licence Agreement
In February of 2021, Nucleus entered into a licence agreement with Sigma Aldrich Pty Ltd., covering the use of Sigma’s
CHOZN GS cell line for Patrys’ product, PAT-DX1. If Patrys wishes to commercialise any of the products developed under
the licence agreement it has the right to enter into a commercial license with Sigma which would incur a marketing approval
fee (AUD conversion to be completed at applicable future exchange rates) payable upon filing per marketing approval in US,
EU and any other market. The marketing approval fee is typical in the industry for transactions of such nature.
Payload Therapeutics – Yale University – License, Commercialisation and Development Agreement
In June 2017, Payload Therapeutics (a wholly-owned subsidiary of Patrys) obtained the global license for the development
as anti-cancer agents the antibodies 3E10 nanoparticles from Yale University. Once developed, certain milestone payments
and royalties will be payable to Yale University regarding products that derive from 3E10 nanoparticles. These milestones
and royalties are typical in the industry for transactions of this nature.
Note 20. Related party transactions
Parent entity
Patrys Limited is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in note 22.
57
Patrys Limited
Notes to the financial statements
30 June 2021
Note 20. Related party transactions (continued)
Key management personnel
Disclosures relating to key management personnel are set out in note 17 and the remuneration report included in the
Directors' report.
Transactions with related parties
There were no transactions with related parties during the current and previous financial year.
Receivable from and payable to related parties
The following balances are outstanding at the reporting date in relation to transactions with related parties:
Consolidated
30 June 2021 30 June 2020
$
$
Current payables:
Trade payables to director related entity of Mr. John Read for directors' fees for his services*
23,750
23,750
*
The fees outstanding for 2021 were paid on 15 July 2021.
Loans to/from related parties
Transactions with controlled entities
The parent entity has signed a Services Agreement with Patrys GmbH (a wholly owned subsidiary) to reimburse the
subsidiary its expenses plus 5%. The amount expensed for the period to 30 June 2021 was $10,508 (2020: nil). At 30 June
2021 there was an inter-company loan balance owed to Patrys GmbH of $455,751 (2020: $440,344). This loan is non-interest
bearing and unsecured.
The parent entity also has intercompany loans with Nucleus Therapeutics, Payload Therapeutics and Transmab (all wholly
owned subsidiaries). At 30 June 2021, the parent entity has receivables of $9,149,935, $265,825 and $13,310 for each
subsidiary respectively which have been impaired at year end. The loans are non-interest bearing and unsecured.
Terms and conditions
All transactions were made on normal commercial terms and conditions and at market rates.
Note 21. Parent entity information
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
Loss after income tax
Other comprehensive income for the year, net of tax
Total comprehensive income
Parent
30 June 2021 30 June 2020
$
$
(4,024,047)
(2,606,558)
-
-
(4,024,047)
(2,606,558)
58
Patrys Limited
Notes to the financial statements
30 June 2021
Note 21. Parent entity information (continued)
Statement of financial position
Total current assets
Total non-current assets
Total assets
Total current liabilities
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Share options reserve
Share loan plan reserve
Accumulated losses
Total equity
Parent
30 June 2021 30 June 2020
$
$
11,604,237
4,219,778
487,671
532,347
12,091,908
4,752,125
619,399
473,438
-
24,946
619,399
498,384
11,472,509
4,253,741
78,112,036
1,480,664
2,419
(68,122,610)
67,086,513
1,263,372
8,396
(64,104,540)
11,472,509
4,253,741
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
The parent entity had no guarantees in relation to the debts of its subsidiaries as at 30 June 2021 (2020: Nil).
Contingent liabilities
The parent entity had no contingent liabilities as at 30 June 2021 (2020: Nil).
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2021 (2020: Nil).
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.
Note 22. 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
Patrys GmbH
Nucleus Therapeutics Pty Ltd
Payload Therapeutics Pty Ltd
Transmab Pty Ltd
Principal place of business /
Country of incorporation
Ownership interest
30 June 2021 30 June 2020
%
%
Germany
Australia
Australia
Australia
59
100%
100%
100%
100%
100%
100%
100%
-
Patrys Limited
Notes to the financial statements
30 June 2021
Note 23. Events after the reporting period
The impact of the COVID-19 pandemic is ongoing and while it had not had a material impact on the Group up to 30 June
2021, it was noted after the reporting date that the pandemic had impacted supply chains for the media used in the production
of PAT-DX1, and that this would result in an expected six month delay to the commencement of the phase 1 clinical trial.
The company is not aware of other impacts, but notes that other potential impacts, positive and/or negative, are possible.
The situation is rapidly developing and is dependent on measures imposed by the Australian Government and other
countries, such as maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus that
may be provided.
Subsequent to the end of the financial year, on 2 July 2021, the company announced the issue of 2,500,000 fully paid
ordinary shares, at an issue price of $0.0072 (0.72 cents) per share in relation to the exercise of unquoted options. The
company also issued 26,790 fully paid ordinary shares at an issue price of $0.04 (4 cents) per share in relation to the exercise
of PABOA quoted options.
No other matter or circumstance has arisen since 30 June 2021 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.
Note 24. Reconciliation of loss after income tax to net cash used in operating activities
Loss after income tax expense for the year
Adjustments for:
Depreciation and amortisation
Unrealised foreign exchange losses
Share based payments- Vesting share options
Share based payments- Shares issued
Change in operating assets and liabilities:
(Increase)/decrease in trade and other receivable
Increase in prepayments
Increase/(decrease) in trade and other payables
Increase in other provisions
Increase in other liabilities
Net cash used in operating activities
Note 25. Earnings per share
Consolidated
30 June 2021 30 June 2020
$
$
(4,062,920)
(2,748,539)
48,564
219,301
191,297
-
47,786
(2,904)
312,052
54,000
(589,300)
(35,588)
219,912
33,064
98,513
60,593
(43,549)
(201,941)
26,977
-
(3,877,157)
(2,495,525)
Consolidated
30 June 2021 30 June 2020
$
$
Loss after income tax attributable to the Owners of Patrys Limited
(4,062,920)
(2,748,539)
Weighted average number of ordinary shares used in calculating basic earnings per share
1,609,935,299 1,071,318,226
Weighted average number of ordinary shares used in calculating diluted earnings per share 1,609,935,299 1,071,318,226
Number
Number
60
Patrys Limited
Notes to the financial statements
30 June 2021
Note 25. Earnings per share (continued)
Basic earnings per share
Diluted earnings per share
Accounting policy for earnings per share
Cents
Cents
(0.2524)
(0.2524)
(0.2566)
(0.2566)
Basic earnings per share
Basic earnings per share is calculated by dividing the loss attributable to the Owners of Patrys Limited, excluding any costs
of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the
financial year, adjusted for bonus elements in ordinary shares issued during the financial year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the
after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted
average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares.
Note 26. Share based payments
The following share-based payment arrangements were in existence during the current and/or prior reporting period:
Employee equity
The company issues equity to Patrys (including subsidiaries Patrys GmbH, Nucleus Therapeutics and Payload Therapeutics)
directors, employees and key consultants under either the Loan Share Plan (LSP) or the Executive Share Option Plan
(ESOP). Under the plans, participants are issued with equity to foster an ownership culture within the company to motivate
them to achieve performance targets of the Group. Participation in the plans is at the Board’s discretion and no individual
has a contractual right to participate in the plans or to receive any guaranteed benefits.
The company introduced the LSP in December 2009, following approval of the plan at the 2009 Annual General Meeting.
Only Australian residents are eligible to participate in the plan. The plan allows non-recourse, interest free loans to be
provided to eligible participants to acquire shares under the plan. When an issue is made it is treated as an in-substance
grant of options and expensed over the vesting period because of the limited recourse nature of the loans. Generally shares
issued under the plan vest over a three year period. The shares are acquired in the name of the participant and each
participant authorises and appoints the company Secretary to act on their behalf. Any dividends paid on the shares are used
to repay the loan. If the participant leaves the company, any shares that have not vested are bought back by the company
and cancelled along with the loan. In respect of shares that have vested, generally, the loan balance must be paid in full
within six months of termination of appointment or the shares are sold and the proceeds applied to settle the loan balance.
The issue price of the shares in the company held under the LSP is not included in equity until the loan has been repaid.
Options are granted under the ESOP. Under the ESOP each option granted converts into one ordinary share of Patrys
Limited. Options are granted under the plan for no consideration and carry no dividend or voting rights. Options may be
exercised at any time from the date of vesting to the date of their expiry. The options are typically issued in two or three equal
tranches which vest over a three year period, each tranche having an expiry date of five years after vesting date. The exercise
period in relation to an option, means the period in which the option may be exercised, and is specified by the Board. If a
participant ceases to be appointed as a Director or employed by any member of the group (other than due to his/her death)
then, generally, options that have vested at the date of cessation of appointment/employment will lapse if not exercised within
six months of the cessation date unless an extension is granted by the Board. In the case of death of the participant then the
exercise period is extended to twelve months. All unvested options will generally lapse on cessation.
The valuations of shares issued under the LSP and options issued under the ESOP are determined by using an industry
standard option pricing model taking into account the terms and conditions upon which the instruments were issued.
The Board aims to ensure that the aggregate number of shares or options which may be issued pursuant to the LSP and
ESOP shall not at any time exceed 5% of the total number of issued shares of the company (not including any issues made
under the ESOP to Directors of the company). All issues of shares or options under the plans are subject to approval by the
Nomination & Remuneration Committee.
61
Patrys Limited
Notes to the financial statements
30 June 2021
Note 26. Share based payments (continued)
Set out below are summaries of options granted under the Executive Share Option Plan:
30 June 2021
Grant date
Expiry date
price
Exercise
Balance at
the start of
the year
Granted
Exercised
Expired/
forfeited/
other
Balance at
the end of
the year
24/11/2016
24/11/2016
24/11/2016
19/04/2017
19/04/2017
15/03/2018
15/03/2018
01/06/2018
22/11/2018
15/03/2019
12/09/2019
01/10/2019
15/03/2020
08/05/2020
15/12/2020
15/12/2020
15/12/2020
15/12/2020
15/12/2020
15/12/2020
15/12/2020
15/12/2020
15/12/2020
15/12/2020
24/11/2021
24/11/2021
24/11/2021
19/04/2022
01/07/2021
15/03/2023
01/07/2022
18/04/2023
22/11/2023
15/03/2024
31/08/2024
01/10/2024
15/03/2025
05/05/2025
18/12/2024
18/12/2024
18/12/2024
18/12/2024
18/12/2024
18/12/2024
18/12/2024
18/12/2024
18/12/2024
18/12/2024
$0.0072
$0.0072
$0.0072
$0.0072
$0.0072
$0.0613
$0.0613
$0.0200
$0.0350
$0.0290
$0.0290
$0.0350
$0.0220
$0.0170
$0.0270
$0.0270
$0.0270
$0.0270
$0.0270
$0.0270
$0.0270
$0.0270
$0.0270
$0.0270
7,999,999
8,000,000
8,000,001
250,000
2,500,000
500,000
2,500,000
2,500,000
32,000,000
3,000,000
1,500,000
4,000,000
2,750,000
250,000
-
-
-
-
-
-
-
-
-
-
75,750,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,200,000
11,000,000
800,000
800,000
800,000
2,250,000
2,250,000
1,500,000
1,500,000
500,000
22,600,000
(7,999,999)
(7,000,001)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(15,000,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
999,999
8,000,001
250,000
2,500,000
500,000
2,500,000
2,500,000
32,000,000
3,000,000
1,500,000
4,000,000
2,750,000
250,000
1,200,000
11,000,000
800,000
800,000
800,000
2,250,000
2,250,000
1,500,000
1,500,000
500,000
83,350,000
Weighted average exercise price
$0.0248
$0.0270
$0.0072
$0.0000
$0.0286
30 June 2020
Grant date
Expiry date
price
Exercise
Balance at
the start of
the year
Granted
Exercised
Expired/
forfeited/
other
Balance at
the end of
the year
24/11/2016
24/11/2016
24/11/2016
19/04/2017
19/04/2017
15/03/2018
15/03/2018
01/06/2018
22/11/2018
15/03/2019
12/09/2019
01/10/2019
15/03/2020
08/05/2020
24/11/2021
24/11/2021
24/11/2021
19/04/2022
01/07/2021
15/03/2023
01/07/2022
18/04/2023
22/11/2023
15/03/2024
31/08/2024
01/10/2024
15/03/2025
05/05/2025
$0.0072
$0.0072
$0.0072
$0.0072
$0.0072
$0.0613
$0.0613
$0.0200
$0.0350
$0.0290
$0.0290
$0.0350
$0.0220
$0.0170
7,999,999
8,000,000
8,000,001
250,000
2,500,000
500,000
2,500,000
2,500,000
32,000,000
3,000,000
-
-
-
-
67,250,000
-
-
-
-
-
-
-
-
-
-
1,500,000
4,000,000
2,750,000
250,000
8,500,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
7,999,999
8,000,000
8,000,001
250,000
2,500,000
500,000
2,500,000
2,500,000
32,000,000
3,000,000
1,500,000
4,000,000
2,750,000
250,000
75,750,000
Weighted average exercise price
$0.0243
$0.0292
$0.0000
$0.0000
$0.0248
62
Patrys Limited
Notes to the financial statements
30 June 2021
Note 26. Share based payments (continued)
Set out below are the options exercisable at the end of the financial year:
Grant date
Expiry date
24/11/2016
24/11/2016
24/11/2016
19/04/2017
19/04/2017
15/03/2018
15/03/2018
01/06/2018
22/11/2018
15/03/2019
12/09/2019
01/10/2019
15/03/2020
08/05/2020
15/12/2020
24/11/2021
24/11/2021
24/11/2021
19/04/2022
01/07/2021
15/03/2023
01/07/2022
18/04/2023
22/11/2023
15/03/2024
18/12/2024
01/10/2024
15/03/2025
08/05/2025
18/12/2024
30 June 2021 30 June 2020
Number
Number
-
4,000,000
5,000,000
250,000
2,500,000
500,000
2,500,000
2,500,000
6,000,000
3,000,000
1,250,000
2,000,000
1,500,000
250,000
500,000
7,999,999
8,000,000
8,000,001
250,000
2,500,000
500,000
2,500,000
2,500,000
6,000,000
3,000,000
1,250,000
2,000,000
1,500,000
250,000
-
31,750,000
46,250,000
The weighted average remaining contractual life of options outstanding at the end of the financial year was 2.44 years (2020:
4.77 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
15/12/2020
15/12/2020
15/12/2020
15/12/2020
15/12/2020
18/12/2024
18/12/2024
18/12/2024
18/12/2024
18/12/2024
Share price Exercise
at grant date
price
Expected
volatility
Dividend
yield
Risk-free
Fair value
interest rate at grant date
$0.0220
$0.0220
$0.0190
$0.0190
$0.0190
$0.0276
$0.0276
$0.0276
$0.0276
$0.0276
95.00%
95.00%
95.00%
95.00%
95.00%
-
-
-
-
-
0.21%
0.21%
0.23%
0.23%
0.23%
$0.01250
$0.01360
$0.01020
$0.01120
$0.00970
Set out below are summaries of shares issued under the Loan Share Plan:
2021:
Loan Share Plan - Series
Issue price $
Employee LSP Tranche 20
Employee LSP Tranche 24
Employee LSP Tranche 25
$0.022
$0.050
$0.050
Balance at
start of year
Adjustments
Loans repaid
during year
Loans
cancelled
during year
Balance at
end of year
225,000
100,000
100,000
425,000
-
-
-
-
-
-
-
-
(225,000)
(100,000)
-
-
-
100,000
(325,000)
100,000
63
Patrys Limited
Notes to the financial statements
30 June 2021
Note 26. Share based payments (continued)
2020:
Loan Share Plan - Series
Issue price $
Balance at
start of year
Adjustments
Loans repaid
during year
Loans
cancelled
during year
Balance at
end of year
Employee LSP Tranche 14
Employee LSP Tranche 19
Employee LSP Tranche 20
Employee LSP Tranche 23
Employee LSP Tranche 24
Employee LSP Tranche 25
$0.039
$0.022
$0.022
$0.050
$0.050
$0.050
191,666
225,000
225,000
100,000
100,000
100,000
941,666
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(191,666)
(225,000)
-
(100,000)
-
-
-
-
225,000
-
100,000
100,000
(516,666)
425,000
Accounting policy for share-based payments
Equity-settled and cash-settled share-based compensation benefits are provided to employees.
Equity-settled transactions are awards of shares, or options over shares that are provided to employees in exchange for the
rendering of services. Cash-settled transactions are awards of cash for the exchange of services, where the amount of cash
is determined by reference to the share price.
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently determined using
either the Binomial or Black-Scholes option pricing model that takes into account the exercise price, the term of the option,
the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected dividend
yield and the risk free interest rate for the term of the option, together with non-vesting conditions that do not determine
whether the Group receives the services that entitle the employees to receive payment. No account is taken of any other
vesting conditions.
The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity over the vesting
period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the best estimate
of the number of awards that are likely to vest and the expired portion of the vesting period. The amount recognised in profit
or loss for the period is the cumulative amount calculated at each reporting date less amounts already recognised in previous
periods.
The cost of cash-settled transactions is initially, and at each reporting date until vested, determined by applying either the
Binomial or Black-Scholes option pricing model, taking into consideration the terms and conditions on which the award was
granted. The cumulative charge to profit or loss until settlement of the liability is calculated as follows:
●
during the vesting period, the liability at each reporting date is the fair value of the award at that date multiplied by the
expired portion of the vesting period.
from the end of the vesting period until settlement of the award, the liability is the full fair value of the liability at the
reporting date.
●
All changes in the liability are recognised in profit or loss. The ultimate cost of cash-settled transactions is the cash paid to
settle the liability.
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.
64
Patrys Limited
Notes to the financial statements
30 June 2021
Note 26. Share based payments (continued)
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining expense
is recognised immediately. If a new replacement award is substituted for the cancelled award, the cancelled and new award
is treated as if they were a modification.
65
Patrys Limited
Directors' declaration
30 June 2021
In the Directors' opinion:
●
●
●
●
the attached financial statements and notes comply with the Corporations Act 2001, the "Australian" Accounting
Standards, the Corporations Act 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
2021 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
___________________________
Mr. John Read
Chairman
25 August 2021
66
Tel: +61 3 9603 1700
Fax: +61 3 9602 3870
www.bdo.com.au
Collins Square, Tower Four
Level 18, 727 Collins Street
Melbourne VIC 3008
GPO Box 5099 Melbourne VIC 3001
Australia
INDEPENDENT AUDITOR'S REPORT
To the members of Patrys Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Patrys Limited (the Company) and its subsidiaries (the Group),
which comprises the statement of financial position as at 30 June 2021, the statement of profit or loss
and other comprehensive income, the statement of changes in equity and the statement of cash flows
for the year then ended, and notes to the financial report, including a summary of significant
accounting policies and the directors’ declaration.
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Act 2001, including:
(i)
Giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its
financial performance for the year ended on that date; and
(ii)
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
Report section of our report. We are independent of the Group in accordance with the Corporations
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
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.
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of
BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member
firms. Liability limited by a scheme approved under Professional Standards Legislation.
Key audit matters (Cont’d)
Recoverability of Nucleus Intellectual Property How the matter was addressed in our audit
Refer to Note 11 of the accompanying financial
In assessing intellectual property for any indicators of
statements.
impairment we have performed the following audit
At 30 June 2021 the statement of financial position
procedures:
includes an intangible asset with a carrying value of
•
Obtained a copy of management’s
$483,750 in relation to the Nucleus Intellectual
impairment assessment and challenged the
Property acquired in 2016.
As an intangible asset with a finite life, management
must perform an annual review to test for any
key assumptions and adherence to AASB 136
Impairment of Assets and AASB 138
Intangible assets.
indicators of impairment. Considerable judgement is
•
Verified the existence of research and
required with respect to a number of assumptions
development expenditure incurred as
relating to the asset’s development potential including
evidence of the ongoing development of the
future market and economic conditions.
Nucleus IP.
•
Considered whether there were any external
factors that may impact the intangible asset
impairment assessment including the impact
of COVID-19.
•
Tested the amortisation charge for FY21 to
ensure it is consistent with the life of the IP.
•
Assessed the adequacy of disclosure
surrounding the IP in the financial
statements.
Other information
The directors are responsible for the other information. The other information comprises the
information in the Group’s annual report for the year ended 30 June 2021, but does not include the
financial report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website (http://www.auasb.gov.au/Home.aspx) at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 27 to 34 of the directors’ report for the
year ended 30 June 2021.
In our opinion, the Remuneration Report of Patrys Limited, for the year ended 30 June 2021, complies
with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with
Australian Auditing Standards.
BDO Audit Pty Ltd
Tim Fairclough
Director
Melbourne, 25 August 2021
Patrys Limited
Shareholder information
30 June 2021
The shareholder information set out below was applicable as at 11 August 2021.
Distribution of equitable securities
Analysis of number of equitable security holders by size of holding:
Number
of
Number
of holders
of
ordinary
shares ordinary shares
%
of
ordinary
shares
Number
of holders
of quoted
PABO
options
Number
of
quoted PABO
options
%
of
quoted
PABO
options
Number
of holders
of quoted
PABOA
options
Number
of
quoted
PABOA
options
%
of
quoted
PABOA
options
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and over
11,557
119
226,684
56
1,903,445
217
2,283
99,787,673
1,443 1,717,667,546
4,118 1,819,596,905
0.00
0.01
0.10
5.48
94.41
100.00
0.00
1,185
5
0.06
82,147
29
0.14
176,382
23
3.68
113
4,708,086
153 122,865,769
96.12
323 127,833,569 100.00
4,547
13
158,474
58
389,735
54
163
6,411,806
113 122,759,371
401 129,723,933
0.00
0.12
0.30
4.94
94.64
100.00
Holding less than a
marketable parcel
577
4,311,949
0.24
96
878,671
0.69
198
1,751,675
1.35
Number
Number
of holders
of
%
of
of
unlisted
options unlisted options
unlisted
options
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
-
-
-
-
11
11
-
-
-
-
-
80,850,000
80,850,000
-
-
-
-
100.00
100.00
-
-
70
Patrys Limited
Shareholder information
30 June 2021
Twenty largest quoted equity security holders
The names of the twenty largest security holders of quoted equity securities are listed below:
NATIONAL NOMINEES LIMITED
DR DAX MARCUS CALDER
STORK HOLDINGS 2010 LTD
DAX CALDER PTY LTD
MR RAYMOND LAURENCE CARROLL
KEMAST INVESTMENTS PTY LTD
MARGINATA PTY LTD
MR MLADEN MARUSIC
STAFFWEAR PTY LTD
LGL TRUSTEES LIMITED
LGL TRUSTEES LIMITED
ESTELLEANNE PTY LTD
YALE UNIVERSITY
CITICORP NOMINEES PTY LIMITED
VALUI PTY LTD
MS KARIN JONES
MR XIAOKE XIE
EDSTOP PTY LIMITED
MR STEVEN JAMES STREICHER
MR VINH TRAN
Ordinary shares
% of total
Number held
shares
issued
174,485,718
110,000,000
98,773,814
60,000,000
50,000,000
36,751,635
31,000,000
30,000,000
27,000,000
26,499,994
20,823,529
20,500,000
16,116,324
13,855,219
12,250,012
11,595,961
10,000,000
9,115,223
8,400,000
7,485,500
9.59
6.05
5.43
3.30
2.75
2.02
1.70
1.65
1.48
1.46
1.14
1.13
0.89
0.76
0.67
0.64
0.55
0.50
0.46
0.41
774,652,929
42.57
71
Patrys Limited
Shareholder information
30 June 2021
MR RAYMOND LAURENCE CARROLL
DAX CALDER PTY LTD
NATIONAL NOMINEES LIMITED
MR STEPHEN EDWARD MAHNKEN + MRS DIOR LEONE MAHNKEN
SUNLORA PTY LTD
LGL TRUSTEES LIMITED
MARGINATA PTY LTD
KEMAST INVESTMENTS PTY LTD
MR CRAIG MANNERS
NEAROLOGY PTY LTD
MR MARTIN MUSIC
MR VINCENZO BRIZZI + MRS RITA LUCIA BRIZZI
MS KARIN JONES
MR FRANCIS XAVIER D'SILVA
MR ROBERT VELLA
OCEANVIEW VICTORIA PTY LTD
STELLA EQUITY PTY LTD
SPEYSIDE HOLDINGS PTY LTD
VALUI PTY LTD
MR KWONG YEE WONG
NATIONAL NOMINEES LIMITED
MR FRANCESCO LUCIO MOLINO
P K CAPITAL PTY LTD
MR XIAOKE XIE
DR DAX MARCUS CALDER
MR DANIEL AARON HYLTON TUCKETT
LGL TRUSTEES LIMITED
MR MLADEN MARUSIC
KEMAST INVESTMENTS PTY LTD
ARREDO PTY LTD
MARGINATA PTY LTD
VERTICAL INTEGRATION PTY LTD
SUPERHERO NOMINEES PTY LTD
MR PHILLIP ALWYN URQUHART
MR GARRETH TAYLOR INNES
MR WELAND MAHAR
MR ALAN GILES SAURAN + MRS SUZANNE AUBRUN
MR BRUCE CHALK + MRS MICHELLE CHALK
PROF TERRY STIRLING WALTER
MR XIAOKE XIE
PABO Options over ordinary
shares
% of total
options
issued
Number held
15,000,000
14,000,000
6,187,248
5,700,000
5,195,123
4,166,665
3,666,668
3,267,974
2,600,000
2,500,000
1,811,847
1,700,000
1,578,283
1,500,000
1,377,420
1,250,000
1,192,263
1,180,000
1,166,668
1,040,000
76,080,159
11.73
10.95
4.84
4.46
4.06
3.26
2.87
2.56
2.03
1.96
1.42
1.33
1.23
1.17
1.08
0.98
0.93
0.92
0.91
0.81
59.52
PABOA Options over ordinary
shares
% of total
options
issued
Number held
46,362,055
9,000,000
6,400,000
6,127,626
5,000,000
3,588,521
3,333,334
2,320,311
2,178,650
1,666,667
1,500,000
1,200,000
1,050,380
950,000
870,000
845,000
809,379
750,000
750,000
700,000
95,401,923
35.74
6.94
4.93
4.72
3.85
2.77
2.57
1.79
1.68
1.28
1.16
0.93
0.81
0.73
0.67
0.65
0.62
0.58
0.58
0.54
73.54
72
Patrys Limited
Shareholder information
30 June 2021
Unquoted equity securities
Options over ordinary shares issued
Number
on issue
Number
of holders
80,850,000
11
Substantial holders
Substantial holders in the Company, as disclosed in substantial holding notices given to the Company, are set out below:
Ordinary shares
% of total
Number held
shares
issued
120,117,634
113,818,783
98,773,814
11.19
6.26
5.46
Dr Dax Marcus Calder
Mason Stevens Limited
Stork Holdings 2010 Ltd
Voting rights
The voting rights attached to ordinary shares are set out below:
Ordinary shares
All issued shares carry voting rights on a one-for-one basis.
Quoted PABO Options
There are no voting rights attached to the quoted PABO options.
Quoted PABOA Options
There are no voting rights attached to the quoted PABOA options.
Unquoted Options
There are no voting rights attached to the unquoted options.
There are no other classes of equity securities.
Corporate Governance Statement
Refer to the Company's Corporate Governance statement at: https://patrys.com/investors/#corporate-governance
73
Corporate directory
DIRECTORS
Mr. John Read (Non‑Executive Chairman)
Dr. James Campbell (Managing Director & CEO)
Mr. Michael Stork (Non‑Executive Director and Deputy Chairman)
Ms. Suzy Jones (Non‑Executive Director)
Dr. Pamela Klein (Non‑Executive Director)
COMPANY SECRETARY
Ms. Melanie Leydin
REGISTERED OFFICE
Level 4, 100 Albert Road South Melbourne VIC 3205 Phone: 03 9692 7222
PRINCIPAL PLACE OF BUSINESS
Level 4, 100 Albert Road, South Melbourne VIC 3205
Phone: 03 9670 3273
SHARE REGISTER
Computershare Investor Services Pty Limited 452 Johnston Street Abbotsford VIC 3067
Phone: 1300 850 505
Within Australia phone: +61 3 9415 5000
AUDITOR
BDO ‑ Audit Pty Ltd Tower 4, Level 18, 727 Collins Street Melbourne VIC 3008 Australia
STOCK EXCHANGE
Patrys Limited shares are listed on the Australian Securities Exchange (ASX code: PAB and Listed
Options: PABO and PABOA)
WEBSITE
www.patrys.com
ANNUAL GENERAL MEETING
Patrys Limited advises the time and other details related to its Annual General Meeting will be sent to
all shareholders and released to ASX in due course.
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Corporate and social responsibility
Patrys is a leading therapeutic development company developing a platform of cell‑penetrating antibodies for a range
of cancers. In pursuing this objective, Patrys acknowledges its role within society and believes its success will deliver
long‑term positive benefits to all stakeholders. Patrys’ corporate governance principles and code of conduct set the
framework for how the company, management and employees are expected to conduct themselves.
Our people
The employees of Patrys are essential to the company achieving business success. To ensure Patrys remains a safe,
healthy, and attractive workplace for our employees, Patrys has established workplace policies and practices.
Patrys’ code of conduct reflects the core values of the company and sets out standards of behaviour in matters
including compliance with all legal operations of the company. Patrys has significantly lower rates of employee
turnover than the industry average. This higher rate of employee retention is indicative of its positive and collegiate
workplace. Patrys prides itself on a strong culture based on accountability, performance, and ethical and respectful
behaviours. The Board has adopted a diversity policy to provide a framework for Patrys to achieve a number of
diversity objectives including, but not limited to, gender, age, ethnicity, disability, sexual orientation and cultural
background. Within the limits of a small organisation, Patrys believes that it is tracking well on measures of diversity,
including five of the eight leadership roles in the Board and Management being held by females, and similarly five
being born outside of Australia. Patrys strives to put in place measures, such as flexible working arrangements,
specifically to encourage participation by all.
Employee option schemes are used to provide the opportunity for all staff to share in the success of the company and
to assist in aligning the objectives of employees with those of shareholders.
The community
Through innovative research and development, Patrys is creating products for needs which are currently unmet within
the health and medical markets. All of Patrys’ preclinical research activities comply with strict regulatory and ethical
approval processes.
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