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Proteomics International
L A B O R AT O R I E S LT D
Annual
Report
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ACN 169 979 971
ASX: PIQ
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Corporate Directory
Directors
Mr Terry Sweet - Non-Executive Chairman
Dr Richard Lipscombe - Managing Director
Mr Roger Moore - Non-Executive Director
Mr Paul House - Non-Executive Director
Company Secretary
Ms Karen Logan
Principal Place of Business
QEII Medical Centre, QQ Block
6 Verdun Street
Nedlands WA 6009
T: +61 8 9389 1992
E: enquiries@proteomicsinternational.com
W: www.proteomicsinternational.com
Registered Office
Suite 13, The Atrium
123A Colin Street
West Perth WA 60058765432
Proteomics International Laboratories Ltd
Proteomics International Laboratories Ltd
Auditors
BDO Audit (WA) Pty Ltd
38 Station Street
Subiaco, WA 6008
Accountants
S Pugliese
Suite 13, Level 1
123A Colin Street
West Perth, WA 6005
Share Registry
Automic Group
PO Box 5193
Sydney NSW 2001
T: 1300 288 664
E: hello@automic.com.au
W: automicgroup.com.au
Stock Exchange
ASX
Level 40, Central Park
152-158 St George’s Terrace
Perth WA 6000
ASX Code: PIQ
Corporate Advisor & Investor Relations
Candour Advisory
Dirk Van Dissel
T: +61 408 326 367
E: dirk@candouradvisory.com.au
Contents
FROM THE CHAIR
KEY ACHIEVEMENTS
WINDOW ON THE SCIENCE - The role of proteins in disease
TECHNOLOGY SNAPSHOT - The PromarkerTM platform
DIRECTORS’ REPORT
REVIEW OF OPERATIONS
BOARD OF DIRECTORS AND OPERATIONAL TEAM
MATERIAL BUSINESS RISKS
REMUNERATION REPORT
AUDITOR’S INDEPENDENCE DECLARATION
FINANCIAL STATEMENTS
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flow
Notes to the Consolidated Financial Statements
DIRECTORS’ DECLARATION
INDEPENDENT AUDITOR’S REPORT
SHAREHOLDER INFORMATION
GLOSSARY
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From the Chair
Dear Fellow Shareholder,
It is my privilege, on behalf of your Board, to introduce Proteomics International’s annual report,
reviewing activities and achievements for the year ended 30 June 2020.
This year more than ever we are reminded of the value of medical technology and scientific research.
I have been proud of the professionalism, flexibility and dedication shown by Proteomics International
staff amid the COVID-19 pandemic.
It has been a productive 12 months for the Company, with the focus our flagship diagnostic product -
the PromarkerD test for predicting diabetic kidney disease. The Company achieved three pivotal
commercialisation milestones over the year, with a successful global study with Janssen Research &
Development, validation of an easy-to-use immunoassay version of the test, and CE Mark regulatory
approvals for PromarkerD in Europe.
In late 2019, Proteomics International commissioned of a suite of state-of-the-art instruments in our
laboratory, as part of a Public Private Partnership to expand the Western Australian Proteomics Facility.
This collaboration gives the Company an enhanced ability to identify potentially valuable biomarkers
across medicine, veterinary health and agriculture.
Aided by the equipment upgrade, the Promarker™ R&D pipeline has been expanded targeting new
diagnostic tests in areas with significant unmet need. Excitingly, promising proof of concept results
have already provided a potential breakthrough for Proteomics International in the effort to create a
world-first test for endometriosis.
For the year ahead the team is focused on our commercial goals and to take PromarkerD into the clinic
world-wide.
We thank you for your continued investment in Proteomics International Laboratories as we look
forwards to realising our vision:
To help create a world where disease is detected early and cured simply.
Yours sincerely,
Terry Sweet
Chair, Proteomics International
Key Achievements
PromarkerD
•
Immunoassay In Vitro Diagnostic Test (IVD) validated
Successful validation makes PromarkerD available
on a cost-effective, easy-to-use technology platform
servicing the Laboratory Developed Test and IVD
markets, with the results presented at the 18th
Human Proteome Organization World Congress.
• Technology transfer opens door to new markets
in Europe
PromarkerD mass spectrometry technology
successfully transferred to clinical diagnostics
partner Atturos in Ireland. Test launched in Spain
under exclusive licence agreement with Patia Europe.
• Test effectiveness confirmed in major clinical studies
Ongoing collaboration with global pharmaceutical
giant Janssen Research & Development showed
the power of PromarkerD for predicting diabetic
kidney disease in a 3,000-strong international study.
These results were co-presented at the world’s pre-
eminent diabetes conference, the 80th Scientific
Sessions of the American Diabetes Association.
Separate clinical results published in a peer-
reviewed journal demonstrated that PromarkerD
has excellent negative predictive value ("rule-out"
capability) in patients with type-2 diabetes.
• First Regulatory Approvals
Three European CE Mark registrations achieved
covering the high-throughput immunoassay
kit PromarkerD (IA), mass spectrometry test
PromarkerD (MS), and PromarkerD Hub. TGA
regulatory approval secured for PromarkerD
software hub as an in vitro diagnostic (IVD) for
export use.
•
Intellectual Property portfolio expanded
Further patents granted in Brazil, Canada and
Indonesia. IP portfolio now includes trade secrets,
plus patents and trademarks covering 273 million
(59%) of the world diabetes population.
Diagnostics
• Cutting-edge protein biomarker analysis
facility launched
Over $4m invested via a Public Private Partnership
to provide a world-leading facility that boosts
Proteomics International’s ability to identify
biomarkers and offer analytical services.
• Successful proof of concept study for diagnostic
test for endometriosis
Newly-identified biomarkers provided breakthrough
for Proteomics International in the effort to create a
world-first test for endometriosis. These biomarkers
were successfully validated in a proof of concept
study performed on 54 women which returned
statistically significant results, and the Company
has filed a patent on its invention.
• Diagnostics R&D expanded
Promarker™ R&D expanded to include endometriosis,
the gastroenteritis-causing Giardia parasite, chronic
lung conditions, cancer, oxidative stress, plant dieback,
diabetic retinopathy and COVID-19.
• COVID-19 research grants awarded
$200,000 in funding awarded to support Proteomics
International's R&D programs for a rapid diagnostic
test of the SARS-CoV-2 virus, and to isolate biomarkers
that give insights into progression of the disease.
Analytical Services & Corporate
• Revenue from continuing operations sustained
Achieved record income exceeding $3m built upon
strong analytical services revenue and biomarker
focused research grants, in combination exceeding
$1.6 million.
• Revenue driven by diversified business model
Contracts secured across pharmacokinetic (PK)
testing, biomarker analysis, biosimilars testing,
consulting and specialist analytical work (e.g. food
product quality control on A2 milk).
• Enters Western Australian Exporters Hall of Fame
In recognition of winning the Health & Biotechnology
Award in three of the last four years Proteomics
International was inducted into the Western
Australian Industry & Export Awards Hall of Fame,
exemplifying the global breadth of the company's
client base.
• $3 million raised in heavily oversubscribed Placement
Successful capital raising added new institutional,
family office and high net worth investors to the
share register and provided funds for the
commercialisation of PromarkerD, upgraded
laboratory instruments and expansion of the
diagnostic products pipeline.
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Proteomics International
I D E N T I T Y
Proteomics International is a medical
technology company specialising in
predictive diagnostics and advanced
analytical services using proteomics -
the industrial scale study of the
structure and function of proteins.
M I S S I O N
To improve the quality of lives by
the creation and application of
innovative tools that enable the
improved treatment of disease.
V I S I O N
To help create a world where disease
is detected early and cured simply.
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Window on the Science
The role of proteins in disease
From the common cold to kidney disease, our bodies produce different proteins
when we are sick.
Why study proteins?
Proteins are made up of hundreds or thousands of building blocks called amino acids, strung together in long
chains. They do most of the work in cells and are required for the structure, function and regulation of our
tissues and organs.
Proteins are produced by the body from ‘instructions’ encoded in our DNA. But unlike our genes, the type
and amount of proteins we produce changes over the course of our lives. Proteins tell us what is happening
in our bodies right now. This offers a whole new level of diagnosis and treatment for disease.
Infectious diseases
Some diseases involve an infection by microorganisms like bacteria
or viruses. The invading pathogen causes the immune system to go
into overdrive.
The body produces antibodies, a type of protein that binds to
microorganisms to help fight them. These antibodies are specific
to the infection, and are stored so that if we get sick again our body
has the right protein tools to protect itself.
Microscope image of E. coli bacteria.
Non-infectious diseases
Other diseases, such as diabetic kidney disease and endometriosis,
are influenced by both our genes and lifestyle. In these non-infectious
diseases, the way proteins behave can tell us a lot about what is
happening in the body.
In some cases, someone developing a serious disease will be
asymptomatic, with physical symptoms presenting only too late. By
looking at specific proteins expressed by an individual, diseases can
be predicted and treated before serious damage occurs.
The kidney (left). In diabetic kidney disease the
glomerulus (purple) is damaged, often without
evident symptoms.
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Technology Snapshot
The Promarker™ platform
Proteomics International’s proprietary technology identifies the proteins
that give insight into disease.
Biomarker discovery
The human body contains an estimated 20,203 genes coding for proteins. However, there are multiple levels
of regulation and modification between reading a gene and producing the final protein product. As a result,
over 200,000 proteins are predicted to co-exist in the human body, interacting in a complex network.
Proteomics International uses its Promarker™ platform to identify biomarkers - protein ‘fingerprints’
associated with disease. These biomarkers can be used to diagnose medical conditions, or predict whether
a person will develop a disease in the future.
How the Promarker™ platform works
DISCOVERY
Blood samples are collected from patients with and without a disease, such as diabetes
or endometriosis.
The proteins in the blood samples are analysed
using a mass spectrometer. This instrument is
able to find and measure specific low-abundance
proteins in a complex sample, comparable to finding one specific
person hiding amongst the 7.8 billion people on earth.
Mass spectrometry works by detecting the size of particular proteins,
fragmenting the protein into smaller pieces, and then analysing the
pieces based on their mass. The mass spectrometer can identify
whether particular proteins are present, and how much of them are in
each sample.
The samples from people with the target disease are compared to
those without the disease. In some cases, protein ‘fingerprints’
associated with the disease can be identified. These are called
biomarkers.
PROOF OF CONCEPT
The effectiveness of the biomarkers as a test for the target disease
are verified in a follow up study. Those biomarkers that prove to
be stable and readily detectable are used to develop a test for the
disease.
CLINICAL STUDY
The biomarker test is validated in a much larger clinical cohort,
enrolling more than 500 people with the target disease.
A successful test that can accurately predict or diagnose disease is an innovative tool enabling the improved
treatment of disease.
Changing lives
The Promarker™ platform’s strength lies in its ability to be
applied to any condition - from chronic health conditions
including diabetes, cancer and Alzheimer’s disease to acute
diseases such as bacterial and viral infections.
Promarker™ technology has already been used to develop
the PromarkerD test for predicting diabetic kidney disease,
which
is being commercialised around the world.
Proteomics International is currently researching multiple
biomarkers as part of its Promarker™ pipeline. For more
information, see the Diagnostics section (page 18).
Post-validation, biomarker tests are commercialisation-
ready, helping to create a world where disease is detected
early and cured simply.
PromarkerD
Proteomics International’s PromarkerD test
searches for proteins in the blood associated
with diabetic kidney disease. The test uses a
panel of three biomarkers, combined with
clinical factors, to predict the onset of the
disease up to four years in advance.
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Directors’ Report
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The Directors present their report on Proteomics International Laboratories Ltd (ASX:PIQ; Proteomics International or
the Company) and the consolidated entity (referred to hereafter as the Group) for the year ended 30 June 2020.
DIRECTORS
The Directors of the Company in office during the financial year and until the date of this report are as follows:
Mr Terry Sweet
Dr Richard Lipscombe
Mr Roger Moore
Mr Paul House
(Appointed 9 June 2014)
(Appointed 9 June 2014)
(Appointed 14 October 2016)
(Appointed 22 November 2017)
(Non-Executive Chairman)
(Managing Director)
(Non-Executive Director)
(Non-Executive Director)
OPERATING RESULT
To be read in conjunction with the attached Consolidated Financial Report (see page 40).
The operating result for the year was:
Loss before income tax (16%)
$1,743,770 $2,080,275
Loss for the year
(16%)
$1,743,770
$2,080,275
Change
2020
2019
CONSOLIDATED
Comprising
Revenue and Other income
Expenses
10%
(1.2%)
$3,016,274
$4,760,044
$2,736,312
$4,816,587
The Group's financial report for the year ended 30 June 2020 includes:
• Operating revenue grew 8% to $1.59 million, with analytical services based contract research remaining robust
despite economic uncertainties and supplemented by research grants.
• Combined income from all sources rose 10% to $3.02 million, encapsulating revenue from analytical services
and research grants, State and Federal COVID-19 stimulus packages and the R&D Tax Incentive.
• Operational expenditure was unchanged at $4.8 million, and focused on the commercialisation of
PromarkerD, upgrading of laboratory instruments, and expansion of the diagnostics pipeline.
•
The loss from ordinary activities decreased 16% to $1.74 million, which reflects normal operational costs and
non-cash items and includes a share based payments expense of $112,715.
•
The net cash outflow from operating activities was $384,508, a reduction of 77%.
• At 30 June 2020 the Company had cash reserves of $2.37 million, and trade and other receivables of
$0.36 million. On the back of the Company's research and development focus it anticipates an R&D Tax
Incentive cash rebate of $1.14 million, to be received in the December quarter 2020.
DIVIDENDS
No dividend was paid during the year and the Board has not recommended the payment of a dividend.
ISSUED CAPITAL
92,405,875 fully paid ordinary shares (ASX: PIQ) and 4,390,279 unlisted options were on issue as at 30 June 2020.
ANNUAL GENERAL MEETING
In accordance with ASX Listing Rules 3.13.1 and 14.3, Proteomics International advises that its 2020 annual general
meeting (AGM) is scheduled to be held on 26 November 2020. The Company encourages shareholders to attend the
AGM and receive an update on the strategy and initiatives of the Group.
Review of
Operations
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Review of Operations
A growth cycle driven by the Company’s strengths
Principal activities
Proteomics International is a pioneering medical technology
company operating at the forefront of predictive
diagnostics and bio-analytical services. The company
specialises in the area of proteomics - the industrial scale
study of the structure and function of proteins.
Proteomics International's business model is centred on
the commercialisation of the Company's pioneering test for
diabetic kidney disease, PromarkerD. The Company offsets
the cash burn from R&D and product development
through provision of specialist analytical services, whilst
using its proprietary Promarker™ technology platform to
create a pipeline of novel diagnostic tests.
Proteomics International is a wholly owned subsidiary and
trading name of Proteomics International Laboratories Ltd
(PILL; ASX: PIQ), and operates from state-of-the-art
facilities located on the QEII Medical Campus, Perth,
Western Australia.
1. PromarkerD
2. Diagnostics
Targeting the global diabetes epidemic,
PromarkerD is a predictive diagnostic test for
diabetic kidney disease, a progressive disorder
found in one in three adults with diabetes.
The prevalence of kidney disease is rising rapidly
and many patients progress to need dialysis or a
kidney transplant. In peer reviewed clinical studies
PromarkerD correctly predicted 86% of
otherwise healthy diabetics who went on
to develop chronic kidney disease
within four years1.
Proteomics International's diagnostics development
is made possible by the Company’s proprietary
biomarker discovery platform called Promarker™,
which searches for protein ‘fingerprints’ in a sample.
This disruptive technology can identify proteins that
distinguish between people who have a disease and
people who do not, using only a simple blood test.
It is a powerful alternative to genetic testing.
The technology is so versatile it can be
used to identify ‘fingerprints’ from any
biological source, from wheat seeds
to a blood sample. The global
biomarkers market is expected to
exceed USD 118 billion by 20262.
3. Analytical Services
Specialist contract research focusing on biosimilars quality control and
pharmacokinetic testing for clinical trials. Australia is a global leader in
clinical trials due to its efficient regulatory framework and high-quality trial
sites, and all samples from each trial require specialist analytical testing.
Significantly, the fastest growing class of drugs entering clinical trials is
biologics and biosimilars. The global clinical trials market is projected to
reach USD 68.9 billion by 20263, whilst the market size of the global
biosimilar market was valued at USD 5.95 billion in 2017, and is projected to
reach USD 71.97 billion by 20274. The global proteomics market was valued
at USD 24.4 billion in 2017, and is expected to reach USD 72.4 billion by 20255.
1. For further information see the PromarkerD web portal: www.PromarkerD.com
2. Grand View Research 2019: Biomarkers Market Size
3. Grand View Research 2019: Clinical Trials Market Size
4. Markets and Markets 2019: Biosimilars Market by Product
5. Allied Market Research 2019: Proteomics Market Outlook 2025
PromarkerD
Proteomics International achieved three pivotal milestones
in the commercialisation of PromarkerD in 2019-20: a
successful global study validating the predictive power of the
test in partnership with Janssen Research & Development
LLC (Janssen), development and validation of a cost-effective
immunoassay version of the test, and regulatory approval of
PromarkerD in Europe.
These achievements are ensuring this ground-breaking
technology is fit for purpose for a diverse global audience that
includes diagnostic and pharmaceutical companies, clinical
professionals, and of course, patients with diabetes.
PromarkerD Test Available for Global Use
Simple Technology Platform
PromarkerD Immunoassay Ready
✓
Seeking certified laboratories to introduce the PromarkerD
immunoassay as an LDT
High Statistical Performance
✓
Peer reviewed publications - Analytical & clinical validity
evidence
Regulatory Approval in Europe
✓
CE Mark registration received for the PromarkerD
Immunoassay
Big Pharma Interested
Enormous Market
Collaboration with Janssen - Global multi-centre clinical study
463m adults have diabetes globally - 1 in 3 currently have DKD
✓
✓
Therapeutic Treatments Available
✓
SGLT2 inhibitor class drugs with renal protection approved for
type 2 diabetes treatment
Reimbursement
✓
Engaged industry leading consultant to obtain a unique
US reimbursement code
IVD
CDx
LDT
PromarkerD
About PromarkerD
PromarkerD is a predictive test for
the early identification of diabetic
kidney disease. In published clinical
studies, PromarkerD correctly
predicted which otherwise healthy
diabetics went on to develop chronic
kidney disease within four years.
Further information is available
through the PromarkerD web portal:
www.PromarkerD.com
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PromarkerD - Regulatory
REGULATORY APPROVALS
CE Mark registration in Europe
Proteomics International achieved CE Mark registration for
both the immunoassay (IA) and mass spectrometry (MS)
versions of the PromarkerD test. The Company also secured
CE Mark registration for the PromarkerD Hub, a software tool
used to calculate the risk of kidney disease.
The CE Mark provides a significant step for
Proteomics International to license and sell
PromarkerD throughout the European Union. It
provides assurance to European consumers and potential
licensing partners that the product has been developed and
manufactured to meet EU safety, health and environmental
protection requirements. Importantly, these registrations lay
the groundwork for future regulatory approvals, including an
application to the US FDA.
TGA approval for software IVD
Proteomics International secured TGA regulatory approval for
PromarkerD software as an in vitro diagnostic (IVD) for export
use. The software was included on the Australian Register of
Therapeutic Goods on the 24 July 2019. The remote software
hub enables the secure delivery of test results to Proteomics
International's partners around the world, and provides an
additional level of intellectual property security beyond the
company’s comprehensive patent portfolio.
Further Regulatory approvals and Reimbursement
The successful production of the PromarkerD immunoassay
and its move towards clinical use globally means further
regulatory approvals will be required in other jurisdictions. As
the party responsible for the manufacture and distribution
of a medical device (kit) Proteomics International requires
specific quality management systems, of which ISO 13485 is
the industry's most widely used international standard.
Proteomics International has adopted the ISO 13485
guidelines for PromarkerD and is in the process of acquiring
formal certification. Both CE Mark and
ISO 13485
demonstrate a commitment to the safety and quality of
medical devices, and are recognised in multiple countries
world-wide.
In the USA, PromarkerD will initially be sold as a Laboratory
Developed Test (LDT) via a CLIA (Clinical Laboratory
Improvement Amendments) certified clinical laboratory. To
assist routine use Proteomics International will seek FDA
regulatory approval for the PromarkerD immunoassay kit
under the 'De novo' or '510(k)' pathways. Prior to approval the
US FDA requires medical device companies to also comply
with FDA 21 CFR Part 820. The US FDA is currently updating
these guidelines to harmonise with ISO 13485.
Medical reimbursement costs for diagnostics tests are
covered by different policies worldwide. A primary target for
to secure a specific
is
Proteomics
reimbursement code for PromarkerD in the USA, and to
achieve this the Company is currently engaging with key
industry stakeholders via a specialist US consultant.
International
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PromarkerD - Technology
TECHNOLOGY PLATFORMS
Advanced immunoassay validated
Proteomics International announced the validation of its
PromarkerD immunoassay In Vitro Diagnostic Test (IVD)
platform in September. The immunoassay has been
designed using the advanced CaptSureTM technology (see
2019 Annual Report) and has now commenced production
with the Company's manufacturing partners TGR
BioSciences (an Abcam Company). Shelf-life and long-term
product performance testing will form an ongoing
component of the commercial roll-out of the assay.
The successful validation makes the PromarkerD test for
diabetic kidney disease available on two technology
platforms (mass spectrometry and immunoassay). The
PromarkerD immunoassay technology can be used as a
Laboratory Developed Test (LDT), manufactured as an In
Vitro Diagnostic (IVD) test kit, or configured to run on
automated immunoassay platforms to meet the diverse
needs of clinical diagnostics laboratories around the world.
PromarkerD in the Clinic
TEST RESULTS
Technology transfer opens door to new markets in Europe
Proteomics International and clinical diagnostics firm
Atturos successfully transferred the PromarkerD test
system to Atturos’ laboratories in Ireland. Proteomics
International and Atturos scientists undertook a stringent
validation process of the PromarkerD method, and
demonstrated data equivalence in 100 patient samples
analysed in both laboratories. The results of this successful
"cross-over" study were presented at the 18th Human
Proteome Organization World Congress in Adelaide in
September. The achievement made PromarkerD available
as a MS-LDT to licence partners in Europe, allowing the
Company to launch PromarkerD in Spain under a licence
agreement with Patia Europe.
RISK SCORE % 0 10 20 100
LOW RISK
MODERATE RISK
HIGH RISK
Prognostic 16% indicates a moderate risk of decline in kidney function*
* as defined by incident diabetic kidney disease (eGFR <60mL/min/1.73m2) in the next four years. Note: If eGFR level at the time of the test is
already <60mL/min/1.73m2, then the risk of a further decline in kidney function is defined as an eGFR decline ≥30% in the next four years.
Result Interpretation
Low Risk
Standard diabetes management; Status tested annually.
Moderate Risk More frequent monitoring; Optimisation of lifestyle factors; Review of glycemic targets
and management; Review of non-glycemic risk factors and their management including
blood pressure and lipids; Avoidance of potentially nephrotoxic drugs; Utilisation of
therapeutic drugs with evidence of renoprotection; Status tested every 3-6 months.
High Risk
Very close monitoring; Intensive management strategies based on those for ‘Moderate
risk’ above with optimisation of treatments for diabetes and other risk factors. Status
tested every 3 months.
Interpretation of Risk Scores (based on recommendations from the ADA DKD Consensus report)
PREDICTIVE TEST for
DIABETIC KIDNEY
DISEASE
PromarkerD patient reports
use a traffic light scoring
system for optimal
performance
A simple blood test that
measures three plasma
proteins combined with three
clinical factors (age,
cholesterol, eGFR)
In published clinical studies
PromarkerD predicted 86% of
otherwise healthy diabetics
who went on to develop
kidney disease within 4 years
Definitions:
"Promarker" - the proprietary technology used to discover and evaluate proteins for use as diagnostics
"PromarkerD/PromarkerD test system" - the patented predictive diagnostic test for Diabetic Kidney Disease
"PromarkerD (MS)" - the predictive diagnostic test for Diabetic Kidney Disease using Mass Spectrometry
"PromarkerD (IA)" - the predictive diagnostic test for Diabetic Kidney Disease using ImmunoAssay
"PromarkerD Hub" - the proprietary software tool used to calculate the risk of Diabetic Kidney Disease in diabetes patients
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PromarkerD - Clinical
CLINICAL RESULTS
Effectiveness of PromarkerD confirmed in international
study with global pharma
A global, multi-centre study of 3,000 people confirmed the
effectiveness of PromarkerD as a predictive test for diabetic
kidney disease. The collaborative study with Janssen
applied the PromarkerD test system to patient samples
from the CANVAS completed phase 3 clinical trial of
patients with type 2 diabetes.
Retrospective analysis of blood samples from the
completed clinical trial showed that patients predicted by
PromarkerD to be at high-risk of chronic kidney disease
were 13.5 times more likely than the low-risk group to
develop the disease. The study provides international
validation of previous findings that PromarkerD is able to
correctly predict a clinically significant decline in kidney
function up to four years in advance. The results were
presented at the world’s leading diabetes conference, the
80th Scientific Sessions of the American Diabetes
Association (ADA), in June.
The PromarkerD ‘virtual booth’ at the 80th Scientific
Sessions of the American Diabetes Association (ADA) in
June.
To visit the PromarkerD virtual product display please see:
www.PromarkerD.com/product
The science behind PromarkerD
• PromarkerD was able to predict renal function decline in the four-year CANVAS trial of patients
(N>3000) with type 2 diabetes and at high risk of cardiovascular disease.
Baseline PromarkerD moderate-risk and high-risk scores were increasingly prognostic for
incident CKD (odds ratio 5.29 and 13.52 versus low-risk, respectively; both P<0.001).
• PromarkerD was able to predict renal function decline in the four-year Fremantle Diabetes Study
of community-based patients (N~1000) with type 2 diabetes.
Four-year risk of developing DKD at the optimal score cut-off: 86% sensitivity,
78% specificity (AUC = 0.88), 98% negative predictive value or “rule-out” capability).
Across the two clinical studies, 10-28% of patients experienced a clinically significant decline
in kidney function during the four years.
Long term studies are required to ascertain how current interventions can improve late stage
outcomes. Nonetheless current medical understanding is that early intervention and management of
chronic kidney disease has long term benefits; existing chronic kidney disease is associated with heart
disease, stroke, anaemia, increased levels of infections and lower quality of life; kidney damage is not
repairable and if left unchecked provides a permanent significant risk of developing end stage renal
disease (ESRD).
PromarkerD - Clinical
Collaboration Expansion
Determining a direct relationship between PromarkerD
and patient outcomes is a complex process with extensive
data analysis required over the large clinical data set.
Janssen and Proteomics International have extended their
collaboration to examine the PromarkerD score in patient
samples after treatment to assess if patients display an
improved prognosis, i.e. does their PromarkerD risk score
decrease?
Significantly, samples will be tested using the higher
throughput PromarkerD immunoassay, PromarkerD (IA),
instead of the mass spectrometry platform, PromarkerD
(MS). Use of PromarkerD (IA) may provide important results
to support Proteomics International's future FDA regulatory
applications. In addition to DKD outcomes, the ability of
PromarkerD to predict cardiovascular outcomes is also
being investigated. Results will be presented during FY21.
Journal of Diabetes and
Clinical results published in peer-reviewed journal
Clinical validation results for PromarkerD were published
in the peer-reviewed
its
Complications in September. In community-based diabetes
patients PromarkerD correctly predicted 86 per cent of
people who went on to develop chronic kidney disease
during the four years of the study. Importantly, the results
showed PromarkerD also has an excellent negative
predictive value or "rule-out" capability, with the test
correctly predicting 98 per cent of people who did not go
on to develop diabetic kidney disease within four years.
The research was conducted in collaboration with The
University of Western Australia Medical School.
Treatments for diabetic kidney disease
• SGLT2 inhibitors, known as Gliflozins, are a new class
of glucose-lowering oral drugs for diabetes
• On 30 September 2019, Canagliflozin (Invokana™)
became the first drug in 20 years to approved for the
treatment diabetic kidney disease
• FDA approved SGLT2 inhibitors for type 2 diabetes
treatment include:
• Empagliflozin (Boehringer Ingelheim/ Eli Lilly & Co.)
• Dapagliflozin (AstraZeneca/ Bristol-Myers Squibb)
• Canagliflozin (Janssen Pharmaceuticals)
• The gliflozins all appear to exhibit renal-protective
properties, significantly lowering risk of renal failure,
dialysis or kidney transplantation, and renal or
cardiovascular death in high-risk patient patients
• New guidelines from the American Diabetes
Association (Standards of Medical Care in Diabetes
2020) recommend use of SGLT2 inhibitors in type 2
diabetes patients as an additional agent for lowering
glucose - and for lowering cardiovascular and renal
risk in patients predisposed to these complications.
Early detection can significantly help reduce DKD
progression and prevent serious kidney damage
Potential for PromarkerD as a complementary
diagnostic (CDx)
• The ability for early identification of at-risk patients
who should be prescribed renal-protective drugs now
• The monitoring of patients as treatment progresses
to show the benefit of that treatment
Scientific publications
describing PromarkerD
Davis TME, Peters KE, Lipscombe R:
Apoptosis inhibitor of macrophage
(AIM/CD5L) and diabetic kidney disease.
Cellular & molecular immunology 2019
May;16(5):521.
Peters KE, Davis WA, Ito J, Winfield K, Stoll T,
Bringans SD, Lipscombe RJ, and Davis TME
(2017). Identification of Novel Circulating
Biomarkers Predicting Rapid Decline in
Renal Function in Type 2 Diabetes: The
Fremantle Diabetes Study Phase II.
Diabetes Care 40, 1548-1555.
Peters KE, Davis WA, Ito J, Winfield K, Stoll T,
Bringans SD, Lipscombe RJ, Davis TME
(2017). Novel circulating biomarkers predict
rapidly declining renal function in type 2
diabetes: The Fremantle Diabetes Study.
Diabetes, 66 (Supplement 1).
Bringans SD, Ito J, Stoll T, Winfield K, Phillips
M, Peters KE, Davis WA, Davis TME,
Lipscombe RJ (2017). Comprehensive mass
spectrometry based biomarker discovery
and validation platform as applied to
diabetic kidney disease. EuPA Open
Proteomics 14, 1-10.
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PromarkerD - Market
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2011305050
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BR1120130067640
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2811654
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3151012
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Total Addressable Market
The total potential addressable markets for clinical pathology laboratories (it is expected the PromarkerD test may be performed once per year per patient on average
(Standard of care: High-risk patients are tested every 3-6 months; Low-risk every 2 years)).
a
US Patent only
30,987,900 diabetics 1
Trademark only
47,747,700 diabetics 1
Global
462,969,900 diabetics 1
IP Coverage (Patent & Trademark)
272,597,800 diabetics 1
Assumptions: 1 International Diabetes Federation (IDF) Atlas 9th Edition 2019 [Age group 20-79 years; Total = Diagnosed (48.7%) + Undiagnosed (51.3%)].
PromarkerD - Market
THE MARKET
The International Diabetes Federation estimates there are
463 million adults living with diabetes globally - currently
1 in 3 develop diabetic kidney disease (DKD). At the current
rate of growth there will be a 51% increase to 700 million
people living with diabetes by 2045.
Intellectual Property portfolio expanded
Proteomics International continued to strengthen its
intellectual property portfolio, in the form of patents,
trademarks and trade-secrets, which provide the foundation
for licensing discussions. In 2019-20, the Company secured a
patent for PromarkerD in Indonesia, which is home to more
than 10 million people with diabetes—the sixth highest in
the world. Subsequent to the end of the financial year, the
company also secured patents for the potentially substantial
markets of Brazil, which has 16.8 million adults with diabetes,
and Canada, which has 2.8 million. Together the Company's
granted patents and trademarks cover 273 million (59%) of
the addressable diabetes patient population globally.
Business Model for PromarkerD
Due to the prevalence of diabetes and diabetic kidney
disease the potential revenue from a test for diabetic
kidney disease is considerable.
Proteomics International is actively pursuing identified
global and regional licensing opportunities for PromarkerD
across jurisdictions covered by its patents and trademarks
and is currently in commercialisation discussions with
several different parties.
The Company’s business model is to out-license its
intellectual property to diagnostics providers and to
receive a royalty on each test sold. Proteomics International
will also sell the specialist reagents required to perform
each test, whilst the PromarkerD hub regulates use of the
test by each provider. Under this model the licensee will
cover the capital expenditure to distribute and promote
PromarkerD within their network, thus removing a
significant cost burden from Proteomics International.
Proteomics International is targeting a test price to the
patient of between US$55 and US$150 (test price of US$55
is based on use of existing American Medical Association CPT
billing codes for similar analytes to the PromarkerD panel;
test price of US$150 is based on stakeholder engagement
responses (Proteomics International market access study
conducted by independent US consultant)). Standard
industry royalty rates for out-licensing of intellectual
property for diagnostics typically range from 5-15%.
As part of the global launch for PromarkerD, the Company
elected to first license in several smaller geographic
jurisdictions, being Mexico (PromarkerD (MS)), Dominican
Republic (licence to develop own PromarkerD (IA)) and
most recently in Spain (PromarkerD (MS)). However, sales
of the test in these jurisdictions are on-hold with clinics
and hospitals unable to offer the test due to the COVID-19
pandemic.
The launch into these initial jurisdictions has allowed
Proteomics International to create brand awareness and
prove PromarkerD in real-life clinical settings, both of
which are important for future licensing opportunities in
larger geographic areas.
CANADA
UNITED STATES
BRITAIN
GERMANY
FRANCE
RUSSIA
SPAIN
ITALY
TURKEY
CHINA
JAPAN
BRAZIL
INDIA
HONG KONG
SINGAPORE
INDONESIA
AUSTRALIA
Countries with PromarkerD patents
Countries with PromarkerD patents pending
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Diagnostics
This year Proteomics International has sought to expand
its diagnostics (Dx) portfolio by proactively vetting
biomarker discovery and diagnostics development
opportunities. The Company continues to target new
diagnostic tests for chronic diseases with significant unmet
need and market opportunity across medicine, veterinary
health and agriculture.
This led to the expansion of diagnostics R&D pipeline using
the PromarkerTM platform. Fully-funded research programs
are now in place for endometriosis, the Giardia parasite
(the leading cause of infectious gastroenteritis worldwide),
chronic lung conditions, cancer, oxidative stress, diabetic
retinopathy, plant dieback disease and COVID-19.
The PromarkerTM R&D pipeline and typical timeline is as follows:
Ethics & governance approval (3 months),
Discovery (6 months),
Proof of concept (6 months),
Clinical studies/Validation (12 months).
Diagnostics
Endometriosis
Status update: Proof-of-concept study completed, clinical
studies pending. Patent application filed.
In March, Proteomics International announced it had
identified and filed a patent application describing a panel
of novel protein biomarkers with the potential to be
developed into a simple blood test for endometriosis.
There is a large market opportunity for Proteomics
International given that current tests have low accuracy
and cannot easily be used to test if pets infected with
Giardia present a risk to their owners. A strain specific test
could readily benefit the US market where according to the
Centers for Disease Control and Prevention, the prevalence
is an estimated 1.2 million people.
The proof-of-concept study analysed 54 women across
three groups: patients with endometriosis; healthy
individuals and, importantly, patients with symptoms but
no clinical diagnosis, to identify protein biomarkers that
were statistically significant markers for disease.
Endometriosis occurs when the tissues that line the uterus
spread outside of the uterine cavity and surround other
organs. The debilitating disease affects one in nine
Australian women, with the current gold standard for
detection being a surgical procedure. Direct medical costs
(outpatient and hospitalisation) associated with
endometriosis in the United States surpass US$17.3 billion
annually.
Given the large unmet medical need and the only existing
diagnostic tool being
invasive surgery, Proteomics
International believes there will be significant commercial
interest in this program post successful clinical study
validation.
Giardia (causing gastroenteritis)
Status update: Proof-of-concept study completed,
validation study pending.
Proteomics International continues its development of an
improved diagnostic test for the parasite Giardia in
collaboration with the Murdoch University Veterinary
School and a leading US veterinary company.
Giardia is a leading cause of infectious gastroenteritis
worldwide and one of the most common parasitic human
diseases. The risk for human health is that some Giardia
strains that affect pets can cross into humans (zoonotic),
whilst others do not (host specific). Surveillance data
suggests there are 280 million people worldwide being
infected each year.
Proteomics International has identified strain specific
Giardia targets and developed a prototype immunoassay,
which is pending validation using field samples. This aspect
has been delayed by the COVID-19 pandemic. The
commercial viability of the assay will not be known until
completion of this last phase, which is expected later in
2020.
Asthma & COPD
Status update: Ethics approval received, discovery study
underway.
Proteomics International received ethics approval for a
discovery study to identify biomarkers for asthma and
chronic obstructive pulmonary disease, which cost
healthcare systems tens of billions of dollars a year.
The study is in collaboration with the Busselton Population
Medical Research Institute, which gives Proteomics
International access to the globally-recognised Busselton
Health Study, first established in 1966 and one of the
longest running epidemiological research programs in the
world. The discovery phase has recently commenced using
the PromarkerTM pipeline.
Plant dieback
Status update: Discovery study underway.
The Company's approach to developing diagnostic tests
and identifying potential drug targets is not limited to
human medicine. Proteomics International has an ongoing
collaboration with the Centre for Crop and Disease
Management at Curtin University to target the plant
pathogen Phytophthora cinnamomi, which is responsible
for plant dieback.
The pathogen has already infected over one million
hectares of Australian bushland, and also infects premium
crops such avocados, macadamias and pineapples.
Phytophthora attacks the roots of vegetation and inhibits
them from being able to take up water and nutrients,
resulting in death (termed Dieback). The estimated cost to
the Australian economy is $160 million per year for damage
to natural vegetation alone.
Current investigations are focused on proteomic analysis
(determining the protein maps) of the life stages of the
organism and how it infects its host. This has the potential
to identify weaknesses in the pathogen that could be
targeted to help eradicate this disease.
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Diagnostics
Eye disease (retinopathy)
Cardiovascular disease
Pregnancy complications
Oral health
Kidney disease (nephropathy)
Nerve damage (neuropathy)
Diabetic foot
Complications of diabetes.
Diabetic retinopathy
Status update: Ethics approval received, discovery study
underway.
Following the success of its diabetic kidney disease project,
Proteomics International signed a new collaboration
agreement with The University of Western Australia to seek
early markers for diabetic retinopathy.
Diabetes adversely affects the body's blood vessels leading
to a range of complications including heart (cardiovascular),
kidney (nephropathy), nerve (neuropathy) and eye
(retinopathy) damage. Currently a third of patients with
diabetes have diabetic retinopathy - vision impairment
caused by damage to blood vessels at the back of the eye.
Diabetic retinopathy is the major cause of blindness in the
USA, responsible for approximately 20,000 new cases each
year, but finding and treating diabetic retinopathy early can
reduce the risk of blindness by 95%. An early diagnosis has
the ability to transform quality of life outcomes, with
commensurate billion-dollar socioeconomic benefits.
This collaboration is applying the PromarkerTM platform to
look for prognostic markers in the blood that can identify
patients at risk of retinopathy, especially sight-threatening
retinopathy. The program will again utilise the Fremantle
Diabetes Study which provided the rich sample repository
that led to PromarkerD.
in a
Oxidative stress (2-tag)
Status update: Status update: Proof-of-concept study
completed, clinical validation pending. Commercialisation
discussions underway.
Proteomics International has been
long-term
collaboration with The University of Western Australia to
develop methodology that could become the next
generation of medical diagnostic tests. The patented
technology called "2-tag" measures the oxidative stress in
a system.
Every person has a base level of oxidative stress at all times
- the human body requires oxidative stress to function.
However, very high levels of oxidative stress can be
dangerous and have been linked to a wide range of chronic
diseases including stroke, heart attack, Parkinson’s disease,
and muscular dystrophy and muscle damage.
2-tag extends Proteomics
International's existing
technology platform to zoom further into the molecular
landscape to examine not only the number and type of
proteins in a sample but subtle “decorations” on the
proteins themselves.
The technology has now matured with the 2-tag test
demonstrating proof of concept with several publications
targeting Duchenne muscular dystrophy and new
exploratory work in aquaculture and sports management.
The Company's intellectual property consists of granted
patents in the USA (US 8,043,824 B2) and Australia
(AU2006/001757) directed to a "Method to determine the
redox {oxidation} state of proteins ('2-tag')".
Proteomics International is currently examining commercial
opportunities to exploit this innovative technology.
Diagnostics
Biomarkers for cancer
Status update: Proof-of-concept study completed, clinical
validation pending. In-licensing discussions underway.
Proteomics International is in discussion with a pre-
eminent Australian medical research institute to in-license
a novel mass spectrometry-based cancer diagnostic test.
The Company will provide further details as this develops.
Novel disease biomarkers - ARC Centre for
Personalised Therapeutics Technologies
Status update: Ethics approval received, discovery study
underway. In-licensing discussions underway.
The Australian Research Council Centre for Personalised
Therapeutics Technologies is a $3.1 million Federally funded
Industrial Transformation Training Centre (ITTC) in which
Proteomics International is working alongside leading
university-based researchers to apply the PromarkerTM
technology to Complementary Diagnostics.
Proteomics International is in advanced discussion with
other consortium members for a discovery project in an
area of significant unmet medical need. The Company will
provide further details as this develops.
COVID-19 biomarkers
Status update: Ethics approval pending, method
development underway prior to the discovery study.
The program is for the identification of protein biomarkers
for COVID-19 disease susceptibility and response.
According to the World Health Organisation, 80% of people
with COVID-19 disease have no symptoms or just a mild
infection, whereas 14% of infections are severe and require
oxygen and 6% are critical infections requiring ventilation.
The difference could be due to protein 'fingerprints' in the
patient's blood. These biomarkers have the potential to
become a simple blood test that predicts which patients
are at greatest risk of requiring significant medical
intervention.
Proteomics International has teamed up with respiratory
physicians to analyse collections of blood samples taken
from patients at diagnosis to (a) identify whether there are
biomarkers in mild COVID-19 patients that are protective
in that individual, and (b) determine if there are biomarkers
that predict a severe or critical infection. The identification
of such biomarkers could provide a new diagnostic test for
clinicians to triage patients when they present with first
diagnosis, enabling better planning and allocation of
limited hospital resources. This is an area of significant
unmet need in global COVID-19 diagnostics.
COVID-19 diagnostic
Status update: Ethics approval received, discovery study
underway.
The second program is for research into the development
of a rapid, non-invasive diagnostic test for direct detection
of the SARS-CoV-2 virus in patients. The new diagnostic test
is targeting detection of the virus in saliva because it is easy
to collect and analyse. The successful development of a
new diagnostic test for infections due to COVID-19 could
provide a significant improvement in testing capabilities
nationally and worldwide.
In May, Proteomics International was awarded two grants
worth a combined $200,000 under the Western Australian
COVID-19 Research Grants Program to support these two
projects.
Cutting-edge protein biomarker
analysis facility launched
Proteomics International joined forces with
Bioplatforms Australia and The University of
Western Australia to launch a cutting-edge
proteomics facility to explore biological
markers affecting medicine, agriculture, the
environment and marine world. With Federal
and State Government support this Public
Private Partnership is coinvesting A$4.4m over
the next four years in the expanded Western
Australian Proteomics Facility.
Equipment for the cutting-edge facility was
installed in December and has already
provided an increased ability to explore for
and identify biological markers across a broad
range of sectors. This enhanced capability
could lead to the identification of new drug
targets and the creation of diagnostic tests
across medicine and agriculture, boosting both
Proteomics International's R&D activities and
analytical services.
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Analytical Services
Revenue from analytical services remained robust, showing
only a temporary dip due to the COVID-19 pandemic. This
year revenue was spread across specialist analytical work
(e.g. food product quality control), consulting services,
provision of external biomarker analysis services, and
biosimilars and pharmacokinetic (PK) testing.
its world
Biosimilars analytical service extended
Proteomics International has specialised in the analysis of
biosimilars (generic protein drugs) since the Company
received
laboratory
leading
accreditation
In November, Proteomics
International experienced a successful audit by NATA
(National Association of Testing Authorities, Australia),
which emphasised the high quality of analytical processes
within the Company's facilities. Proteomics International
ISO 17025
in 2009.
also took advantage of the downtime associated with its
equipment upgrade to develop and launch a new specialist
service for glycan analysis of biosimilars. This is an
important addition to the Company's portfolio of services
that are used to assess the quality of a biosimilar product,
with the use of biosimilar drugs in the treatment of cancers
continuing to expand.
New pharmacokinetic analysis contracts secured
Proteomics International expanded its partnership with
Linear Clinical Research, securing new analytical services
contracts during the year. The revenue from Proteomics
International’s specialist analytical services continues to
support the development and commercialisation of the
Company’s pioneering diagnostic tests.
World’s most accredited protein testing laboratory
Proteomics International was the first laboratory in the world to receive ISO/IEC
accreditation for proteomics services in 2009 (Accreditation number:16838).
Proteomics International now holds multiple levels of internationally recognised
accreditation:
•
•
ISO 17025: 2015 – R&D with Good Laboratory Practice (GLP) overlay
ISO 17025: 2015 – Chemical Testing
Accreditation recognises Proteomics International's ability to consistently achieve technically valid,
traceable and reproducible results. In Australia, accreditation is assessed by NATA (the National
Association of Testing Authorities). ISO/IEC 17025 is recognised worldwide as the main ISO standard
used by testing and calibration laboratories, and is the most widely used laboratory standard for US
Federal testing laboratories. Accreditation means that clients and regulatory authorities can have
confidence in test results and helps companies identify reliable service providers.
Proteomics International enters Export Award Hall of Fame
In recognition of winning the Health & Biotechnology Export Award in 2015, 2016, and 2018,
as well as the Western Australian Exporter of the Year Award in 2016, Proteomics International
was inducted into the WA Industry & Export Awards Hall of Fame. The induction recognises
continued export success and exemplifies the global breadth of the company's client base.
Company Operations
DRUG DISCOVERY
Proteomics International has had a long-standing interest
in innovative drug discovery, with the Company's first
substantial external funding received to develop a novel
therapeutic pipeline in 2008. This pipeline became the
basis for the PromarkerTM technology platform. The drug
discovery program is on hold whilst the company focuses
its resources on the commercialisation of PromarkerD,
diagnostics, and the provision of analytical services.
CORPORATE ACTIVITY
In November, Proteomics International raised $3.0 million
(before costs) through the issue of 10.8 million shares in a
heavy-oversubscribed share placement. The placement
was at an issue price of $0.28 per share, and was supported
by institutional, sophisticated and professional investors.
The funds were used for the upgrade to the Company's
laboratory capabilities, to support development of existing
and potentially new intellectual property, and to pursue
regulatory and
the
commercialisation of PromarkerD.
reimbursement approvals
for
STRATEGIC COLLABORATIONS
Proteomics International continues to work closely with
the biotechnology and life science community across
Australia.
the
development of scientific knowledge and help Proteomics
International realise its scientific and business objectives.
collaborations promote
Strategic
Highlights of the Company’s collaborations include:
Harry Perkins Institute of Medical Research (Perkins)
The Perkins is the premier adult medical research institute
in Western Australia. Proteomics
is
headquartered there and has held close ties with the
Perkins since 2006. The Company has extended and
expanded its lease with the Perkins to ensure that
Proteomics International's facilities continue to meet its
needs as the company grows.
International
Bioplatforms Australia (BPA)
BPA is a federal body instigated as part of the National
Collaborative Research Infrastructure Scheme (NCRIS) to
facilitate a national capability in the 'omics sciences
(genomics, proteomics, metabolomics and bioinformatics).
Proteomics International manages the Western Australian
node of Proteomics Australia and this year expanded this
Public Private Partnership (see Diagnostics 'Cutting-edge
protein biomarker analysis facility opens').
Australian Research Council Training Centre for
Personalised Therapeutics Technologies
This national $3.1 million Industrial Transformation Training
Centre (ITTC) sees Proteomics International work with
university-based researchers to provide industry training
through the application of the PromarkerTM technology to
Complementary Diagnostics. The centre is hosted by the
University of Western Australia, Monash University and the
University of Melbourne. A joint diagnostics project is now
underway (see 'Diagnostics - Novel disease biomarkers').
Accelerating Australia
This organisation has developed a cohesive and
collaborative early stage biomedical translation ecosystem
under the umbrella of a national consortium covering
academia, industry, and health care providers, including
MTP Connect (the Medtech and Pharma Growth Centre).
As a commercial partner, Proteomics International enjoys
early access to new ideas and products. Accelerating
Australia is led by the Centre for Entrepreneurial Research
and Innovation based in Western Australia. The Centre’s
activities are on-going.
Dr Bill Parker Memorial Industrial Scholarship
In 2017, the Company launched the Dr Bill Parker Memorial
Industrial Scholarship in memory of its cofounder. The
inaugural winner completed a one-year placement with
the company in 2018, and is currently undertaking an
undergraduate degree. The program is on-going and
Proteomics International looks forward to supporting the
2020 class of budding life scientists.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
In the opinion of the Directors, there were no significant
changes in the state of affairs of the Group that occurred
during the financial year not otherwise disclosed in this
report and the financial statements.
EVENTS SINCE THE END OF THE FINANCIAL YEAR
On 27 July 2020, Proteomics International announced that
the Company has secured patents for PromarkerD for the
potentially substantial markets of Brazil, which has 16.8
million adults with diabetes, and Canada, which has 2.8
million. Together the Company's granted patents and
trademarks cover 273 million (59%) of the addressable
diabetes patient population globally.
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Company Operations
Proteomics International Laboratories Ltd
Proteomics International Laboratories Ltd
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Board of Directors and Operational Team
BOARD OF DIRECTORS
Terry Sweet – Non-Executive Chairman (Independent)
Richard Lipscombe – Managing Director
Roger Moore - Non-Executive Director (Independent)
Paul House - Non-Executive Director (Independent)
INFORMATION ON DIRECTORS
Director
Experience
Mr Terry Sweet
FAICD
Terry has been a Director of several listed companies over the past 30 years
in both executive and non-executive capacities. These companies include
XRF Scientific Ltd, where he was Managing Director for 4 years, Western
Biotechnology Ltd, Heartlink Ltd, and Scientific Services Ltd. Originally
trained as a chemist, his interests and expertise now lie in the area of
development and supervision of a culture of Board integrity, commensurate
with technology commercialisation. Terry is a Fellow of the Australian
Institute of Company Directors and joined the Board in June 2014.
Dr Richard Lipscombe
PhD (London),
MA (Oxford)
Mr Roger Moore
R (Denmark),
BPharm (U. Syd)
Mr Paul House
GAICD, BCom (UWA)
Richard, a co-founder of the Company, is a highly practised business manager
and protein chemist expert in analysing biomolecules using proteomics
techniques. He has an extensive expertise in chemistry, immunology, mass
spectrometry, peptide synthesis, high performance computing and robotics.
Richard has international experience in both science and business gained over a
30-year period in Australia, USA and the UK, including work in hospital and
academic laboratories and commercial organisations. He completed his
chemistry degree (MA) at Oxford University, his PhD in immunology at London
University and was a Post-Doctoral scientist (molecular immunology) in a large
research institution in Australia (Telethon Kids Institute). After managing the
Protein Analysis Facility at the University of Western Australia, he co-founded
Proteomics International Pty Ltd in 2001. Richard is well published in peer
review journals, and holder of several patents.
Roger has 40 years’ experience in the international pharmaceutical industry,
including almost 30 years as President of Novo Nordisk Japan (Novo Nordisk is
the world's largest manufacturer of insulin and a global leader in diabetes
care). Roger established Novo's organisation in Japan as the first employee in
1977, and worked for the company until his retirement as Chairman at the end
of 2007. From 2000, Roger was appointed Senior Vice President, Japan and
Oceania Region, responsible for Novo Nordisk's business in Japan, Australia,
New Zealand and the Pacific. He was also appointed a member of the Senior
Management Board, Novo Nordisk A/S. In 2007 Mr Moore was awarded the
Knight's Cross of the Order of the Dannebrog (R) by Queen Margrethe II of
Denmark. Roger joined the Board in October 2016.
Paul has over 25 years’ experience with multi-national corporations and is
currently CEO of Imdex (ASX:IMD). He recently served eight years as the
Managing Director of SGS India, where he was responsible for a workforce of
4,500 personnel and 38 laboratories; SGS is the world’s leading Testing,
Inspection and Certification (TIC) company. Previously held CFO and COO
roles and has a track record for delivery of business performance targets,
revenue growth, margin improvement, market share and productivity, across
multiple services, markets and borders. A Fellow of the Australian Institute of
Management and a Graduate Member of Australian Institute of Company
Directors, Paul joined the Board in November 2017.
Special
Responsibilities
Particulars of Director’s
interest in securities
of the Company
Shares
Options
Chairman
2,348,000
400,000
Managing
Director
19,048,705
-
Nil
717,000
200,000
Nil
718,864
200,000
LIKELY DEVELOPMENTS
Proteomics International will continue to pursue the
commercialisation of its lead diagnostic test PromarkerD
in global markets. Potential licence partners are global and
regional diagnostic companies, diagnostic service
providers, and drug developers. In jurisdictions where
licences have already been granted, the focus will be on
increasing the adoption of the test by engaging with Key
Opinion Leaders and the broader network of clinical
service providers.
As for any novel test, market penetration cannot be
predicted accurately, hence for each licence it is not
possible to quantify the financial impact on Proteomics
International in any given timeframe. Nonetheless,
PromarkerD has the potential to spare millions of people
from the cost of dialysis, saving each health care system
billions of dollars. Consequently, the Company believes
that ultimately the financial impact of each licence will be
significant.
The development pipeline for new diagnostic tests will
progress using the PromarkerTM technology platform, with
the intention of creating new intellectual property that can
be licensed in future years.
These R&D and commercialisation activities will continue
to be underpinned by the analytical services operations.
Fee-for-service revenue continues to grow and Proteomics
International anticipates further growth.
ENVIRONMENTAL REGULATIONS
The Company is subject to environmental regulation and
other licences in connection with its research and
development activities utilising the facilities at the Harry
Perkins Institute of Medical Research. The Company
complies with all relevant Federal, State and Local
environmental regulations. The Board is not aware of any
breach of applicable environmental regulations by the
Company.
GREENHOUSE GAS AND ENERGY DATA REPORTING
The Company has assessed the reporting requirements of
both the Energy Efficiency Opportunities Act 2006 and the
National Greenhouse and Energy Reporting Act 2007 and
the Group is not currently subject to any reporting
obligations.
GOVERNANCE
The Board of Directors is responsible for the operational
and financial performance of the Company, including its
corporate governance. The Company believes that the
adoption of good corporate governance adds value to
investor confidence.
stakeholders and enhances
governance
Proteomics
statement is available on the Company’s website, in a
section titled ‘Corporate Governance’.
International’s
corporate
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CURRENT AND FORMER DIRECTORSHIPS
Directors’ Name
Current Directorships
Former Directorships (last 3 years)
OPERATIONAL TEAM
Proteomics International has established and maintained a highly qualified, multilingual team with well-balanced
commercial and scientific expertise. The senior management group comprises:
Terry Sweet
Richard Lipscombe
Roger Moore
Paul House
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
COMPANY SECRETARY
Ms Karen Logan BCom, Grad Dip AppCorpGov, FCIS, FGIA, F Fin, GAICD
Karen Logan is a Chartered Secretary with over 15 years’ experience in assisting small to medium capitalised ASX-listed and
unlisted companies with compliance, governance, financial reporting, capital raising, merger and acquisition, and
IPO matters. She is presently the principal of a consulting firm and secretary of a number of ASX-listed companies, providing
corporate and accounting services to those clients.
MEETINGS OF DIRECTORS
The numbers of meetings of the Company’s Board of Directors held during the year ended 30 June 2020, and the numbers
of meetings attended by each Director were:
Directors
Mr Terry Sweet
Dr Richard Lipscombe
Mr Ian Roger Moore
Mr Paul House
Full Meetings of Directors
A
B
11
11
11
11
11
11
11
10
A = Number of meetings attended
B = Number of meetings held during the time the Director held office
The Board meets regularly on an informal basis in addition to the above meetings.
Directors have determined that the Company is not of sufficient size to merit the establishing of separate sub-committees
and all decisions are made by the full Board.
Head of Business Development
John C. Morrison
John has over 35 years’ experience in life sciences, biotechnology, and diagnostic industries. John has a degree in
chemistry and an MBA from Boston University. He has held several management positions while at NEN Life
Sciences and DuPont before focusing his last 15 years in Business Development at Perkin Elmer. John successfully
executed many licensing deals and several global acquisitions while in that role. John is based in Massachusetts,
USA and joined the Company in 2014.
General Manager
Dr Kerryn Garrett
Kerryn is responsible for overseeing the day-to-day operations of the Company as well as ensuring that operations
are in line with the strategic direction of the Company. Kerryn joined Proteomics International in 2019, and
previously held the role of Laboratory Manager. Kerryn has over 30 years of research experience, and brings a key
set of expert skills from her extensive experience in the diagnostic pathology industry and the regulatory elements
of accreditation agency NATA.
Research Manager
Dr Scott Bringans
Scott has over 20 years’ experience in protein chemistry and mass spectrometry, and leads the diagnostics program
encompassing PromarkerD. Alongside this is the development of novel methodology to add to Proteomics
International's technology platform and continually expanding the fee-for-service and quality testing portfolio.
Scott has been with the Company for 14 years.
Business Manager - PromarkerD
Dr Pearl Tan
Pearl is focused on leading the team commercialising PromarkerD. She has been with Proteomics International
since 2013, and her previous roles include Chief Operating Officer of Proteomics International and leading the
commercialisation of the patented 2-tag technology (used to measure oxidative stress). Pearl has a background
in research and completed her PhD in Biochemistry and Molecular Biology at The University of Western Australia.
Business Manager - Analytical Services
Dr Javed Khan
Javed has international commercial experience gained over 10 years in the life sciences industry. With a PhD in
Chemistry and Biomolecular Sciences from Macquarie University, Javed joined Proteomics International as a
computational proteomics specialist in 2013, before transitioning into Project Management/Business Development
and was recently appointed Manager of the Company’s extensive Analytical Services business and portfolio.
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Proteomics International Laboratories Ltd
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Material Business Risks
The Group has identified the below specific risks that could
impact upon its future prospects.
Commercialisation Risk
The Company is relying on its ability and that of its partners
to develop and commercialise its products and services in
order to create revenue. Any products or services developed
by the Company will require extensive clinical testing,
regulatory approval and significant marketing efforts before
they can be sold and generate revenue. The Company’s
efforts to generate revenue may not succeed for a number
of reasons including issues or delays in the development,
testing, regulatory approval or marketing of these products
or services.
In addition, developing direct sales, distribution and
marketing capabilities will require the devotion of
significant resources and require the Company to ensure
compliance with all legal and regulatory requirements for
sales, marketing and distribution.
A failure to successfully develop and commercialise these
products and services could lead to a loss of opportunities
and adversely impact on the Company’s operating results
and financial position. In addition, for those countries where
the Company may commercialise its products or services
through distributors or other third parties, the Company will
rely heavily on the ability of its partners to effectively market
and sell its products and services.
Further, even if the Company does achieve market
commercialisation of any of its products and services, it may
not be able to sustain
it or otherwise achieve
commercialisation to a degree that would support the
ongoing viability of its operations.
Drug Market Risk
The research and development process typically takes from
10 to 15 years from discovery to commercial product launch.
This process is conducted in various stages in order to test,
along with other features, the effectiveness and safety of a
product. There can be no assurance that any of these
products and services will be proven safe or effective.
Accordingly, there is a risk at each stage of development that
the Company will not achieve the goals of safety and/or
effectiveness and that the Company will have to abandon a
product.
Intellectual Property
The following are considered to be risks to the Company’s
intellectual property:
(i) General
The patent protection that the Company may obtain varies
from product to product and country to country and may
not be sufficient, including maintaining product exclusivity.
Patent rights are also limited in time and do not always
provide effective protection for products and services:
competitors may successfully avoid patents through design
innovation, the Company may not hold sufficient evidence
of infringement to bring suit, or the infringement claim may
not result in a decision that the rights are valid, enforceable
or infringed.
Legislation or regulatory actions subsequent to the filing
date of a patent application may affect what an applicant is
entitled to claim in a pending application and may also
affect whether a granted patent can be enforced in certain
circumstances. Laws relating to biotechnology remain the
subject of ongoing political controversy in some countries.
The risk of changed laws affecting patent rights is generally
considered greater for the biotechnology field than in other
longer established fields.
(ii) Entitlement to Priority
In order for material disclosed in a patent application to be
entitled to the priority date of a corresponding earlier filed
application (e.g. a provisional application), there must be
adequate support or disclosure of such material in the
in a patent
provisional application. Subject matter
application that is not so disclosed in the earlier application
is not entitled to the claim to priority, which may affect
patentability of the subject invention, or the validity of any
patent that may be granted.
(iii) Securing a Patent
The claims in a pending application cannot be considered
predictive of claims in a granted patent. Examination in
certain jurisdictions such as the USA and the European
Patent Office are often more stringent than other countries
and all pending claims may be subject to amendment
during the pendency of an application. Thus, during
pendency of any patent application, an applicant cannot
reliably predict whether any claims will ultimately be
granted or what the scope of any granted claims will be.
Furthermore, whilst the scope of claims granted in one
country may assist, it cannot be relied upon for predicting
the scope of claims granted in another country.
All patent searches are dependent on the accuracy and
scope of the databases used for the search and, in particular,
the manner in which information in the databases is
indexed for searching purposes.
Patent applications may have been filed by third parties
based on an earlier priority date and the existence of such
applications may not be known for up to about 18 months
after they were filed. Such earlier-filed applications may
constitute prior art that adversely affects patentability or
claim scope of a patent matter listed herein. Given the
timing of and the approach taken to the examination of
patent applications, if any prior art in this 18-month period
does exist, it is unlikely that it will be located in searches
conducted by official Patent Offices.
Delays may occur during pendency, due to unpredictable
events that the application cannot control. The net effect of
such delays may be to decrease the time from the date of
patent grant to the end of the patent term and thus
adversely affect the effective lifetime of enforceability of the
patent.
Patents and pending applications can be subject to
opposition or other revocation proceedings, that vary from
country to country, and which cannot be predicted in
advance.
Reliance on Key Personnel
The Company’s ability to operate successfully and manage
its potential future growth depends significantly upon its
ability to attract, retain and motivate highly-skilled and
qualified research, technical, clinical, regulatory, sales,
marketing, managerial and financial personnel. The
competition for qualified employees in the life science
industry is intense and there are a limited number of
persons with the necessary skills and experience.
The Company’s performance is substantially dependent
on Dr Lipscombe and the other members of its senior
management and key technical staff to continue to
develop and manage the Company’s operations. The loss
of or the inability to recruit and retain high-calibre staff
could have a material adverse effect on the Company. The
Company also relies on the technical and management
abilities of certain key Directors and employees,
consultants and scientific advisers. The loss of any of these
Directors, employees, consultants or scientific advisers
could have an adverse effect on the business and its
prospects.
Regulatory Risk
The introduction of new legislation or amendments to
existing legislation by governments, developments in
existing common law, or the respective interpretation of
the legal requirements in any of the legal jurisdictions that
govern the Company’s operations or contractual
obligations, could impact adversely on the assets,
operations and, ultimately, the financial performance of
the Company and its shares. In addition, there is a risk that
legal action may be taken against the Company in relation
to commercial matters.
Funding Risk
While the Company believes it will have sufficient funds
to meet its operational requirements for the next 12
months, the Company may in the future seek to exploit
opportunities of a kind that will require it to raise
additional capital from equity or debt sources, joint
ventures, collaborations with other life science companies,
licensing arrangements, production sharing arrangements
or other means.
The Company’s capital
requirements depend on
numerous factors and, having regard to the early stage of
development and the nature of its products and services,
the Company is currently unable to precisely predict if, and
what amount of, additional funds may be required. Factors,
which may influence the Company’s possible need for
further capital, include such matters as:
•
•
•
•
the costs and timing of seeking and obtaining
regulatory approvals;
the costs of filing, prosecuting, defending and
enforcing any patent claims and other intellectual
property rights;
the effects of competing product, clinical,
technological and market developments; and
the terms, timing and consideration, if any, of
collaborative arrangements or licensing of
products and services;
There can be no assurance that additional finance will be
available when needed or, if available, the terms of the
financing might not be favourable to the Company and
might involve substantial dilution to Shareholders. If the
Company is unable to obtain additional financing as
needed, it may be required to reduce the scope of its
operations and scale back development and research
programmes as the case may be.
Insurance Risk
The Company may not be able to maintain insurance for
service liability on reasonable terms in the future and, in
addition, the Company's insurance may not be sufficient
to cover large claims, or the insurer could disclaim coverage
on claims. If the Company fails to meet its clients'
expectations, the Company's reputation could suffer and
it could be liable for damages. The Company gives no
assurance that all such risks will be adequately managed
through its insurance policies to ensure that catastrophic
loss does not have an adverse effect on its performance.
Exchange Rate Risk
The Company is exposed to movements in foreign
exchange rates. The Company does not hedge against
movements in the exchange rate. However, significant
changes in currencies may impact on the Company’s
margins and earnings adversely.
Dependence on Key Relationships
The Company
strategic business
currently has
relationships with other organisations that it relies upon
for key parts of its business, such as obtaining the use of
the mass spectrometers, chromatography systems and
other equipment important to the Company’s activities.
The loss or impairment of any of these relationships could
have a material adverse effect on the Company’s results of
operations, financial condition and prospects, at least until
alternative arrangements can be implemented. In some
instances, however, alternative arrangements may not be
available or may be less financially advantageous than the
current arrangements.
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Remuneration Report
REMUNERATION REPORT (Audited)
The Remuneration Report is set out under the following main headings:
A
B
C
D
E
F
G
H
Principles Used to Determine the Nature and Amount of Remuneration
Remuneration Governance
Details of Remuneration
Directors' Agreements
Share-Based Compensation
Additional Information
Additional disclosure relating to key management personnel
Transactions with the key management personnel
The information provided in this Remuneration Report has been audited as required by Section 308(3C) of the Corporations Act 2001.
The remuneration arrangements detailed in this report are for Non-Executive and Executive Directors as follows:
(cid:891) Mr Terry Sweet
Non-Executive Chairman (independent)
(cid:891) Dr Richard Lipscombe
Managing Director
(cid:891) Mr Ian Roger Moore
Non-Executive Director (independent)
(cid:891) Mr Paul House
Non-Executive Director (independent)
The Board members above make up the total number of key management personnel for the purpose of this report.
REMUNERATION REPORT (continued)
A. Principles Used to Determine the Nature and Amount of Remuneration
The objective of the Company's remuneration framework is to ensure reward for performance is competitive and appropriate
for the results delivered and set to attract the most qualified and experienced candidates.
Remuneration levels are competitively set to attract the most qualified and experienced directors in the context of prevailing
market conditions.
The directors recognise that in the early stages of the Company's development and in a period where the Company is making
losses the objectives are to align the interests of the Board with shareholders and to attract, motivate and retain high
performing individuals. The Board believes that this can be achieved through the following framework:
(cid:891)
(cid:891)
The remuneration has a mix of components through the salary and share options; and
The remuneration has been set in consultation with key management personnel (other than the relevant director
whose remuneration is being discussed) taking into account the size of the Company and its current position in the
market.
The Company has not obtained independent advice on the remuneration policies and practices of the key management
personnel or sought the assistance of an external consultant on the current market for similar roles, level of responsibility and
performance of the Board. The Board may consider this in the future should the need arise.
Non-Executive Directors
Fees and payments to the Non-Executive Directors reflect the demands which are made on and the responsibilities of the
Directors. The Non-Executive Directors' fees and payments are expected to be reviewed annually by the Board. The Non-
Executive Chairman's fees are determined based on competitive roles in the external market. The Chairman is not present at
any discussions relating to the determination of his own remuneration.
The Non-Executive Directors' fees and payments have been set based on the experience of the director in the Company's field
of operations, and level of activity required to be undertaken by the director in the management of the Company. The
Chairman currently received a fixed fee for his services as a Director.
The Company's Non-Executive Directors' remuneration package contains the following key elements:
(cid:891) primary benefits - monthly director's fees; and
(cid:891) options - issued following shareholder approval at the 2018 Annual General Meeting.
The Non-Executive Directors' fees are determined within an aggregate directors' fee pool
limit, which is periodically
recommended for approval by shareholders. The maximum currently stands at $500,000 per annum and was approved by
shareholders prior to listing on the ASX.
No retirement benefits are provided other than compulsory superannuation.
Non-Executive Remuneration Mix
The following table sets out the non-executives' remuneration mix for the year ended 30 June 2020:
Fixed
$
135,405
"At Risk"
$
-
Total
$
135,405
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Proteomics International Laboratories Ltd
Proteomics International Laboratories Ltd
REMUNERATION REPORT (continued)
REMUNERATION REPORT (continued)
Executive Director
The Company's Executive Director remuneration package contains the following key element:
(cid:891) primary benefits - salary via an agreement
The above component comprises the Executive Director's total remuneration.
Executive Remuneration Mix
The following table sets out the executives' remuneration mix:
Fixed
$
299,231
"At Risk"
$
Total
$
-
299,231
The shareholders approved the Director Fee Plan at the 2018 Annual General Meeting, where (subject to shareholder
approval) director fees can be settled by the issue of shares.
CONSOLIDATED ENTITY PERFORMANCE AND LINK TO REMUNERATION
Given the nature, size and scale of the Company and its current position with regard to profitability and share price, the Board
has determined that a direct link between remuneration and the Company's performance is difficult to achieve and not
realistic.
USE OF REMUNERATION CONSULTANTS
The Company has not engaged a remuneration consultant during the year.
VOTING AND COMMENTS MADE AT THE COMPANY'S ANNUAL GENERAL MEETING
At the 2019 Annual General Meeting, more than 75% of votes cast were in favour of adoption of the (cid:18)(cid:381)(cid:373)(cid:393)(cid:258)(cid:374)(cid:455)(cid:859)(cid:400)
remuneration report for the 2019 financial year. The Company did not receive any comments at the Annual General Meeting
on its remuneration report.
TOTAL
(i)
(ii)
B. Remuneration Governance
The Board is primarily responsible for making decisions and recommendations on:
(cid:891) the over-arching executive remuneration framework;
(cid:891)
the operation of the incentive plans which apply to the executive director and non-executives including the
performance hurdles;
(cid:891) the remuneration levels of executives; and
(cid:891) Non-Executive Director fees.
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Percentage
Remuneration
Consisting of
Options
Performance
Related
%
%
C. Details of Remuneration
Details of the remuneration of the Directors of the Company is set out below:
Short-Term Benefits
Post-
Employment
Benefits
Other Long-Term
Benefits
Share Based
Benefits
Directors
Fees
Salary
Superannuation
Annual Leave
Options
$
$
$
$
$
54,000
36,000
36,000
-
-
-
-
250,000
126,000
250,000
5,130
3,420
855
23,749
33,154
-
-
-
25,482
25,482
-
-
-
-
-
Total
$
59,130
39,420
36,855
299,231
434,636
0%
0%
0%
0%
0%
$
$
$
$
$
$
%
%
54,000
14,285
36,000
48,630
-
-
-
-
-
185,000
152,915
185,000
5,130
1,357
3,420
3,420
17,575
30,902
-
-
-
-
89,531
148,661
-
44,765
44,766
15,642
84,185
96,816
4,569
4,569
-
207,144
179,062
552,448
60%
-
53%
46%
-
32%
0%
0%
0%
0%
0%
60%
-
53%
46%
-
32%
2020
Non-Executive Directors
Terry Sweet
Ian Roger Moore
Paul House (ii)
Executive Director
Richard Lipscombe
TOTAL
2019
Non-Executive Directors
Terry Sweet
John Dunlop (i)
Ian Roger Moore
Paul House (ii)
Executive Director
Richard Lipscombe
Resigned 22 November 2018.
Fees include settlement of liability with shares in lieu of cash as per Director Fee Plan.
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REMUNERATION REPORT (continued)
D. Directors' Agreements
On appointment, the Non-Executive Directors sign a letter of appointment with the Company which outlines the Board's
policies and terms regarding their appointment including the remuneration relevant to the office of director. A Summary of
each Director's terms is listed below:
Mr Terry Sweet (Chairman)
Particulars
Terms
Term of the agreement
No fixed term - subject to periodic re-election at the AGM
Base remuneration
$54,000
Superannuation
Bonus payable
Statutory rate
N/A
Termination of agreement
None specified
Mr Ian Roger Moore (Non-Executive Director)
Particulars
Terms
Term of the agreement
No fixed term - subject to periodic re-election at the AGM
Base remuneration
$36,000
Superannuation
Bonus payable
Statutory rate
N/A
Termination of agreement
None specified
Mr Paul House (Non-Executive Director)
Particulars
Terms
Term of the agreement
No fixed term - subject to periodic re-election at the AGM
Base remuneration
$36,000
Superannuation
Bonus payable
Statutory rate
N/A
Termination of agreement
None specified
Remuneration and other terms of employment for the Executive Directors are formalised in services agreements. The major
provisions relating to remuneration are set out below.
Dr Richard Lipscombe (Managing Director)
Particulars
Terms
Term of the agreement
No fixed term
Base remuneration
Superannuation
Bonus payable
Leave entitlements
Termination of agreement
$250,000
Statutory rate
At the absolute discretion of the Board
30 days annual leave and no long-service leave
1 month (incapacitated / ill / unsound mind), 1 month (serious or persistent breaches), immediate
(conviction / major criminal offence)
Other Long Term Benefits
No other long term benefits are payable.
REMUNERATION REPORT (continued)
E. Share-based Compensation
At the 2018 Annual General Meeting it was agreed to issue options to the non-executive directors as follows:
Director
Number of Options
Grant Date
Expiry Date
Exercise Price
Fair Value at Grant
Date (i)
Terry Sweet
Total
Ian Roger Moore
Total
Paul House
Total
200,000
200,000
400,000
100,000
100,000
200,000
100,000
100,000
200,000
22-Nov-18
22-Nov-18
22-Nov-21
22-Nov-22
22-Nov-18
22-Nov-18
22-Nov-21
22-Nov-22
22-Nov-18
22-Nov-18
22-Nov-21
22-Nov-22
(i)
The options were issued as a reward and incentive and vested immediately.
$
0.50
0.67
0.50
0.67
0.50
0.67
$
44,206
45,325
89,531
22,103
22,662
44,765
22,103
22,663
44,766
F. Additional Information
While earning and shares price movements are not linked to remuneration, the performance of the Company over the year ended 30 June 2020 is
summarised below (note that EBITDA and non-cash calculations are not in strict compliance with AIFRS as the loss for the period is adjusted for tax,
interest, depreciation, and the non-cash items fair value movement in derivatives and share based payments expense):
Total income
EBITDA and non-cash
EBIT
(Loss) after tax
2020
$
3,016,274
( 1,248,535)
( 1,724,958)
( 1,743,770)
The factors that are considered to affect total shareholder return ('TSR') are summarised below:
Share price at listing date ($A)
Share price at financial year end ($A)
Total dividends declared (cents per share)
Basic loss per share (cents per share)
2016
$
2017
$
2018
$
2019
$
2020
$
0.20 0.20 0.20
0.20 0.20
0.27 0.16 0.20
0.35 0.42
( 0.03)
-
( 0.02)
-
( 0.02)
-
( 0.03)
-
( 0.02)
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REMUNERATION REPORT (continued)
SHARES UNDER OPTION
G. Additional disclosure relating to key management personnel
Shareholding
The number of shares in the Company held during the year by each director and other members of key management personnel
of the consolidated entity, including their personally related parties, is set out below:
Director
2020
Terry Sweet
Richard Lipscombe
Ian Roger Moore
Paul House (i)
Balance at the start
Received as part
Other changes
Balance at the end
of the year
of remuneration
during the year
of the year
2,348,000
19,011,204
627,000
-
-
-
-
2,348,000
37,501 19,048,705
90,000 717,000
488,094 110,770
120,000
718,864
(i)
On 1 October 2019 the Company issued 110,770 fully paid ordinary shares at $0.325 per share to Paul House in lieu of director fees
covering the period November 2017 to September 2018.
Option holding
The number of options in the Company held during the year by each director and other members of the key management
personnel of the consolidated entity, including their personally related parties, is set out below:
Director
2020
Terry Sweet
Richard Lipscombe
Ian Roger Moore
Paul House
Balance at the start
Received as part
Other changed
Balance at the end
of the year
of remuneration
during the year
of the year
400,000
-
200,000
200,000
-
-
-
-
-
-
400,000
-
-
200,000
-
200,000
H. Transactions with key management personnel
The Company entered into the following transactions with key management personnel during the year:
(i) Loans from directors
There were no loans entered into with key management personnel during the year.
Unissued ordinary shares of the Company under option as at 30 June 2020 are as follows:
Date options granted
21/11/2018
21/11/2018
27/03/2020
11/05/2020
Expiry date
22/11/2021
22/11/2022
27/03/2023
1/05/2023
Exercise price
Number under option
$0.50
$0.67
$0.50
$0.50
400,000
400,000
3,040,279
550,000
4,390,279
No option holder has any right under the options to participate in any other share issue of the Company or any other entity.
The options are exercisable at any time before the expiry date.
Options that were converted into shares during the year was 750,000 (2019: 475,000).
INSURANCE OF OFFICERS
During the financial year, the Company paid a premium in respect of a contract insuring the Directors and Officers of the Company
and any subsidiary against a liability incurred as a Director or Officer to the extent permitted by the Corporations Act 2001. Due to a
confidentiality clause in the policy, the amount of the premium has not been disclosed.
The liabilities insured are legal costs that may be incurred in defending civil or criminal proceedings that may be brought against the
officers in their capacity as officers of the Company, and any other payments arising from liabilities incurred by the officers in
connection with such proceedings, other than where such liabilities arise out of conduct involving a wilful breach of duty by the
officers or the improper use by the officers of their position or of information to gain advantage for themselves or someone else or
to cause detriment to the Company. It is not possible to apportion the premium between amounts relating to the insurance against
legal costs and those relating to other liabilities.
PROCEEDINGS ON BEHALF OF THE 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 purposes of taking responsibility on behalf of
the Company for all or part of those proceedings.
No proceedings have been brought or intervened in on behalf of the Company with leave of the Court under section 237 of the
Corporations Act 2001 .
NON-AUDIT SERVICES
The Company may decide to employ the auditor on assignments additional to their statutory audit duties, where the auditors'
expertise and experience with the Company are important.
Non-audit services provided by BDO Corporate Tax (WA) Pty Ltd during the 2020 financial year were in respect to consulting and
amounted to $5,120 (Nil in 2019).
(ii) Consultancy services
Ian Roger Moore provided business development services in the amount of $2,065 (2019 $11,286) on terms no more favourable
than those reasonably expected under arm's length dealings with unrelated persons.
AUDITOR
BDO Audit (WA) Pty Ltd continues in office in accordance with section 327 of the Corporations Act 2001 .
THIS IS THE END OF THE AUDITED REMUNERATION REPORT
AUDITOR'S INDEPENDENCE DECLARATION
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is attached.
This report is made in accordance with a resolution of the Directors.
Terry Sweet
Chairman
Perth, Western Australia
Dated 31st August 2020
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Proteomics International Laboratories Ltd
Proteomics International Laboratories Ltd
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Auditor’s Independence Declaration
Financial
Statements
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Financial Statements
Proteomics International Laboratories Ltd
Proteomics International Laboratories Ltd
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CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME FOR THE YEAR ENDED 30 JUNE 2020
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2020
Revenue from continuing operations:
- Services
- Research grants
Other income
- Interest income
- Research and development tax incentive
- Export and business development grants
- COVID-19 grants and subsidies
Total revenue from continuing operations
Employment and labour expenses
Share based payments expense
Depreciation expense
Intellectual property maintenance expenses
Interest expense
Interest expense - lease liabilities
Laboratory supplies
Professional fees
Travel and marketing expenses
Laboratory access fees
Realised loss in foreign currency translation
Loss on sale of investment
Other expenses
Total Expenditure
Notes
5
2(a)
2(c)
1(h), 15
2(b)
2(b)
Consolidated
Entity
2020
$
Consolidated
Entity
2019
$
1,423,070
166,961
20,702
1,138,815
-
266,726
3,016,274
1,468,076
-
48,248
1,139,403
80,585
-
2,736,312
2,127,031
1,932,914
112,715
363,708
56,875
8,906
9,906
662,292
685,724
80,611
119,260
4,200
-
528,816
4,760,044
222,812
188,293
87,900
27,058
-
578,445
486,877
227,292
144,050
1,903
249,499
669,544
4,816,587
(Loss) before income tax
( 1,743,770)
( 2,080,275)
Income tax (expense) / benefit
3(a)
- -
(Loss) after income tax from continuing operations
( 1,743,770)
( 2,080,275)
Total comprehensive (loss) for the year attributable to equity
holders of Proteomics International Laboratories Ltd
( 1,743,770)
( 2,080,275)
Basic (loss) per share for the year attributable to the members of
Proteomics International Laboratories Ltd
Diluted (loss) per share
26
( 0.02)
N/A
( 0.03)
N/A
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Other assets
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Property, plant and equipment
Other assets
Right-of-use assets
Intangible assets
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Borrowings
Lease liabilities
Provisions
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Trade and other payables
Borrowings
Lease liabilities
Provisions
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated (losses)
TOTAL EQUITY
Consolidated
Entity
2020
$
Consolidated
Entity
2019
$
Notes
4
6
7
9
7
8
10
12
13
11
10
12
13
11
14
16
17
2,365,022
364,587
1,387,997
4,117,606
1,308,277
-
127,825
1,012
1,437,114
5,554,720
447,688
-
63,799
110,984
622,471
334,803
-
69,044
90,501
494,348
1,116,819
1,511,430
501,395
1,229,700
3,242,525
213,677
163,681
-
1,012
378,370
3,620,895
303,064
146,591
-
99,424
549,079
-
18,330
-
67,184
85,514
634,593
4,437,901
2,986,302
13,391,543
1,054,100
( 10,007,742)
4,437,901
10,537,267
713,007
( 8,263,972)
2,986,302
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the
accompanying notes.
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
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Proteomics International Laboratories Ltd
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2020
CONSOLIDATED STATEMENT OF CASH FLOW
FOR THE YEAR ENDED 30 JUNE 2020
CONSOLIDATED ENTITY 30 JUNE 2020
Notes
Issued Capital
Ordinary
$
Reserves
$
(Accumulated
Losses)
$
Total Equity
$
Balance at 1 July 2019
10,537,267
713,007
( 8,263,972)
2,986,302
(Loss) for the year
Other comprehensive income for the year
Total comprehensive (loss) for the year
-
-
( 1,743,770)
( 1,743,770)
-
-
- -
-
-
( 1,743,770)
( 1,743,770)
Transactions with Equity Holders in
their capacity as Equity Holders
Equity issued net of share issue costs
Conversion of Options
Share based payments expense
14
14
2,631,198
223,078
1(h), 15 -
2,854,276
-
-
-
-
341,093
341,093
-
-
2,631,198
223,078
341,093
3,195,369
Balance as at 30 June 2020
13,391,543
1,054,100
( 10,007,742)
4,437,901
CONSOLIDATED ENTITY 30 JUNE 2019
Notes
Issued Capital
Ordinary
$
Reserves
$
(Accumulated
Losses)
$
Total Equity
$
Consolidated
Entity
2020
$
Consolidated
Entity
2019
$
Notes
Cash flows from operating activities
Receipts from customers, grants and other income
COVID-19 grants and subsidy receipts
Payments to suppliers and employees
Interest paid
Interest received
Withholding tax paid on overseas locations
Research and development tax incentive
Net cash (outflow) from operating activities
4(a)
Cash flows from investing activities
Proceeds from sale of investment
Payment for property, plant and equipment
Right of use asset aquired
Net cash inflow (outflow) from investing activities
Cash flows from financing activities
Proceeds from the issue of shares (net of costs)
Proceeds from the conversion of options
Loans to employees
Repayment of lease liabilities
Repayment of borrowings
Net cash inflow (outflow) from financing activities
1,722,639
266,726
( 3,496,673)
( 18,812)
20,702
( 13,752)
1,134,662
( 384,508)
-
( 1,458,308)
( 127,825)
( 1,586,133)
2,823,576
223,078
( 57,500)
( 68,800)
( 96,121)
2,824,233
1,648,633
-
( 4,171,235)
( 27,058)
48,248
-
834,403
( 1,667,009)
928,399
( 37,991)
-
890,408
-
118,750
-
-
( 147,500)
( 28,750)
Balance at 1 July 2018
10,369,887
490,195
( 6,183,697)
4,676,385
Cash and cash equivalents at 1 July
1,511,430
2,316,781
(Loss) for the year
Other comprehensive income for the year
Total comprehensive (loss) for the year
-
-
( 2,080,275)
( 2,080,275)
-
-
- -
-
-
( 2,080,275)
( 2,080,275)
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at 30 June
4(a)
853,592
2,365,022
( 805,351)
1,511,430
Transactions with Equity Holders in
their capacity as Equity Holders
Equity issues net of share issue costs
Conversion of Options
Share based payments expense
14
14
48,630
118,750
1(h), 15 -
167,380
-
-
-
-
222,812
222,812
-
-
48,630
118,750
222,812
390,192
Balance as at 30 June 2019
10,537,267
713,007
( 8,263,972)
2,986,302
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
The above Consolidated Statement of Cash Flow should be read in conjunction with the accompanying notes.
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Proteomics International Laboratories Ltd
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(b)
Segment Information
The financial report of Proteomics International Laboratories Ltd and its subsidiary (the Company) for the financial year ended 30 June 2020
was authorised for issue in accordance with a resolution of the Directors on the 28th day of August 2020.
The Company is a public company limited by shares incorporated and domiciled in Australia, and whose shares are traded on the Australian
Securities Exchange.
(cid:100)(cid:346)(cid:286)(cid:3)(cid:374)(cid:258)(cid:410)(cid:437)(cid:396)(cid:286)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:381)(cid:393)(cid:286)(cid:396)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:400)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:393)(cid:396)(cid:349)(cid:374)(cid:272)(cid:349)(cid:393)(cid:258)(cid:367)(cid:3)(cid:258)(cid:272)(cid:410)(cid:349)(cid:448)(cid:349)(cid:410)(cid:349)(cid:286)(cid:400)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:18)(cid:381)(cid:373)(cid:393)(cid:258)(cid:374)(cid:455)(cid:3)(cid:258)(cid:396)(cid:286)(cid:3)(cid:282)(cid:286)(cid:400)(cid:272)(cid:396)(cid:349)(cid:271)(cid:286)(cid:282)(cid:3)(cid:349)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:24)(cid:349)(cid:396)(cid:286)(cid:272)(cid:410)(cid:381)(cid:396)(cid:859)(cid:400)(cid:3)(cid:396)(cid:286)(cid:393)(cid:381)(cid:396)(cid:410)(cid:3)(cid:258)(cid:271)(cid:381)(cid:448)(cid:286)(cid:856)
(a)
Basis of preparation
The principle accounting policies adopted for the preparation of financial statements are set out below. These accounting policies have been
applied consistently to all periods presented unless otherwise stated.
(i)
Statement of compliance
These general purpose financial statements have been prepared in accordance with the requirements of the Corporations Act 2001 ,
Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board and the Corporations Act 2001 .
The Company is a for profit entity for the purpose of preparing the financial statements.
The financial statements of the Company also comply with the International Financial Reporting Standards (IFRS) as issued by the
International Accounting Standards Board (IASB).
(ii)
Basis of measurement
The financial statements have been prepared on an accruals basis and are based on historical cost other than investments which are recorded
at fair value. The financial statements are presented in Australian dollars and all values are rounded to the nearest dollar unless otherwise
stated.
(iii)
Going Concern
For the year ended 30 June 2020 the Company recorded a loss of $1,743,770 (2019: loss $2,080,275) and had net cash outflows from
operating activities of $384,508 (2019: net cash outflows $1,667,009).
The Directors believe there are sufficient funds to meet the Company's working capital requirements as at the date of this report for the
following reasons:
(cid:891)
(cid:891)
(cid:891)
(cid:891)
(cid:891)
The current business development prospects show an increase in activity and should lead to increasing ongoing revenue;
The Company has an excess of current assets over current liabilities of $3,495,135 as at 30 June 2020;
The Research & Development tax incentive of $1,138,815, which has been recorded in other assets in the statement of financial
position is expected to be received by October 2020;
The Directors remain committed to the long-term business model which offsets the cash burn from research and development
expenditure and product development through the continuing growth in analytical services revenue; and
The budgets and forecasts reviewed by the Directors for the next twelve months anticipate the Company's operations will continue
to produce improved results.
AASB 8 - Operating Segments, requires a management approach under which segment information is presented on the same basis as that used for
internal reporting purposes. This is consistent to the approach used for the comparative period.
Operating segments are reported in a uniform manner which is internally provided to the chief operating decision maker. The chief operating decision
maker has been identified as the Board of Directors.
An operating segment is a component of the organisation that engages in business activity from which it may earn revenues or incur expenditure,
including those that relate to transactions with other organisation components. Each operating (cid:400)(cid:286)(cid:336)(cid:373)(cid:286)(cid:374)(cid:410)(cid:859)(cid:400) results are reviewed regularly by the Board
when making decisions about resources to be allocated to the segments and assess its performance, and for which discrete financial information is
available.
The Board monitors the operations of the Company as one single segment. The actual to budget items and a detailed profit or loss are reported to the
Board to assess the Company's performance.
The Board has determined that strategic decision making is facilitated by evaluation of the operations of the legal parent and subsidiary, which
represent the operational performance of the (cid:18)(cid:381)(cid:373)(cid:393)(cid:258)(cid:374)(cid:455)(cid:859)(cid:400) revenues and the research and development activities as well as the finance, treasury,
compliance and funding elements.
(c)
Estimates and judgements
The preparation of the financial statements requires the use of accounting estimates and judgements which, by definition, will seldom equal the actual
results. This note provides an overview of the areas that involve a degree of judgement or complexity in preparing the financial information. Facts and
circumstances may come to light after the event which may have significantly varied the assessment used, and which may result in a materially
different value being recorded at the time of preparing these financial statements.
(i)
(ii)
(iii)
(iv)
(v)
Deferred taxes
Deferred tax assets have not been brought to account as it is not considered probable that the Company will make taxable profits over the next
12 months. The Company will make a further assessment at the next reporting period.
Impairment of assets
The Company assesses the impairment of assets at each reporting date by evaluating conditions specific to the asset that may lead to
impairment. The assessment of impairment is based on the best estimate of future cash flows available at the time of preparing the report.
However, facts and circumstances may come to light in later periods which may change this assessment if these facts had been known at the
time.
COVID-19 pandemic
Judgement has been exercised in considering the impacts that the coronavirus SARS-CoV-2 and the COVID-19 pandemic (COVID-19) has had, or
may have, on the Company based on known information. This consideration extends to the nature of the products and services offered,
customers, supply chain, staffing and geographic regions in which the Company operates. Other than as addressed in specific notes, there does
not currently appear to be either any significant impact upon the financial statements or any significant uncertainties with respect to events or
conditions which may impact the Company unfavourably as at the reporting date. The future impact and recovery from COVID-19 is unknown
and it may have an impact on activities in relation to the commercial roll-out of the Company's PromarkerD diagnostic test and on receipt of
revenue from licensing partners.
Recoverability of Research & Development tax incentive
The Company has registered its research and development activities with the Department of Industry, Innovation and Science. Therefore the
Company is entitled to claim a tax incentive each year based on eligible research and development costs it incurrs and, based on successful
claims in previous years, the Company expects that it will receive the amount calculated.
Lease extensions
The Company has entered into a facility licence agreement with the Harry Perkins Institute and does not expect any changes to the agreement in
the next financial year.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
(g)
Employee Benefits
Liabilities for wages and salaries, including non-monetary benefits and accumulating sick leave that are expected to be settled wholly within
12 months after the end of the period in which the employees render the related service, and are recognised in respect of (cid:286)(cid:373)(cid:393)(cid:367)(cid:381)(cid:455)(cid:286)(cid:286)(cid:400)(cid:859)
services up to the end of the reporting period, are measured at the amounts expected to be paid when the liabilities are settled.
The liabilities are presented as current liabilities in the statement of financial position, described as other payables, and comprise provision
for annual leave and provision for long service leave.
The liabilities for long service leave and annual leave that are not expected to be settled wholly within 12 months after the end of the period
in which the employees render the related service, are therefore measured as the present value of expected future payments to be made in
respect of services provided by employees up to the end of the reporting period using the projected unit credit method. Consideration is
given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are
discounted using market yields at the end of the reporting period of government bonds with terms and currencies that match, as closely as
possible, the estimated future cash outflows. Re-measurements as a result of experience adjustments and changes in actuarial assumptions
are recognised in the statement of profit or loss and other comprehensive income.
Contributions to superannuation funds are recognised as an expense as they become payable. Prepaid contributions are recognised as an
asset to the extent that a cash refund or a reduction in the future payments is available.
(h)
Share based payments
Share-based payments compensation benefits are provided to employees, Directors and consultants via the issues of shares and/or options.
The fair value of the shares and options granted as compensation benefits are recognised as a share based payments expense in the
statement of profit or loss and other comprehensive income with a corresponding increase in equity in the statement of financial position.
Share-based payments compensation benefits are provided to consultants for capital raising via the issues of shares and/or options.
The fair value of the shares and options granted in relation to capital raisings are recognised as a share based payments expense in the
statement of profit or loss and other comprehensive income and offset against equity in the statement of financial position as a transaction
cost.
(i)
Foreign currency translation and transactions
The financial statements are presented in Australian dollars.
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 the statement of profit or loss and other
comprehensive income.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
(d)
Principles of consolidation
Subsidiaries
Subsidiaries are all entities (including structured entities) over which the Company has control. The Company controls an entity when it 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 Company. They are
deconsolidated from the date that control ceases.
Intercompany Transactions
Intercompany transactions, balances and unrealised gains on transactions between group companies are eliminated. Unrealised losses are
also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have
been changed where necessary to ensure consistency with the policies adopted by the Company.
(e)
Revenue recognition and other income
Revenue is recognised when or as the Company transfers control of goods or services to a customer, at the amount to which the Company
expects to be entitled.
The following is a description of the principal activities from which the Company generates its revenue and other income:
(i) Research grant and equivalent/other income including the Research & Development Tax Incentive
Grants and other income are recognised at their fair value where it is probable that the grant and other income will be received.
The Company is eligible to claim, and receive, a tax credit for its qualifying research and development activities (Research &
Development tax incentive). The Research & Development tax credit received by the Company in the year amounted to
$1,134,662.
(ii) Revenue from contracts with customers - Commercialisaton of PromarkerD
Revenue from commercialisation of PromarkerD is measured based on the consideration specified in a contract with a customer.
The Company recognises revenue when it transfers control over a product or service to a customer.
(iii) Revenue from contracts with customers - Sales of Analytical and Other Services
Revenue from the provisions of analytical and other services is recognised in the accounting period in which the services are
rendered.
If services rendered by the Company exceed the payment received, a contract asset is recognised. If the payment received exceeds
the services rendered, a contract liability is recognised.
In some circumstances, analytical and other services are bundled together with provision of sales of services and products. The sale
of products is a separate performance obligation and transaction price is allocated to the products and services on a relative stand-
alone selling price basis.
(iv) Federal and State COVID-19 grants and subsidies
COVID-19 grants and subsidy receipts are recognised as other income rather than offsetting expenses to which they relate.
(f)
Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost.
Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the statement of profit or loss
and other comprehensive income over the period of the borrowings using the effective interest method.
Borrowings are removed from the statement of financial position when the obligation specified in the contract is discharged, cancelled or
expired.
Borrowings are classified as current liabilities unless there is an unconditional right to defer settlement of the liability for at least 12 months
after the reporting period.
46
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Proteomics International Laboratories Ltd
Proteomics International Laboratories Ltd
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
(j)
Income tax
(m)
Cash and cash equivalents
The income tax expense or benefit for the year is the tax payable on that year's taxable income based on the applicable income tax rate for
each jurisdiction, adjusted by changes in deferred tax assets and liabilities attributable to temporary differences, unused tax losses and the
adjustment recognised for prior periods, where applicable.
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.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to apply when the assets are recovered
or liabilities are settled, based on those tax rates that are enacted or substantively enacted, except for:
For the statement of cashflows presentation purposes, cash and cash equivalents also includes bank overdrafts, which are shown within
borrowings in current liabilities on the statement of financial position.
(i)
(ii)
When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a
transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting nor taxable
profits; or
When the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and the timing of
the reversal can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable
amounts will be available to utilise those temporary differences and losses.
The carrying amount of recognised and unrecognised deferred tax assets are reviewed 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 entity's which intend to settle simultaneously.
(k)
Joint Arrangements
The Company entered into a collaborative joint arrangement with the University of Western Australia ('UWA') during the year for the
expansion and operation of the Western Australian Proteomics Facility.
The collaboration arrangement is not structured through a separate entity. Both parties to the arrangement will operate independently with
each party maintaining independent rights to the assets of the collaboration and liabilities resulting from activities under the arrangement will
be several, and not joint or joint and several. The arrangement has therefore been classified as a joint operation and the Company recognises
its direct right to the jointly held assets, liabilities, revenues and expenses in accordance with AASB 11 - Joint Arrangements.
(l)
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current classification. An asset is current
when:
(i)
(ii)
(iii)
(iv)
it is expected to be realised or intended to be sold or consumed in normal operating cycle;
it is held primarily for the purpose of trading;
it is expected to be realised within twelve 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 twelve months
after the reporting period.
All other assets are classified as non-current.
A liability is current when:
(i)
(ii)
(iii)
(iv)
it is expected to be settled in normal operating cycle;
it is held primarily for the purpose of trading;
it is due to be settled within twelve months after the reporting period; or
there is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.
All other liabilities are classified as non-current.
(n)
Trade and other receivables
Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of business. Trade receivables
are usually due for settlement within 30 days and therefore are all classified as current.
Trade receivables are recognised initially at the amount of consideration that is unconditional unless they contain significant financing
components, when they are then recognised at fair value. The Company holds the trade receivables with the objective to collect the
contractual cash flows and therefore measures them subsequently at amortised cost using the effective interest rate method.
The Company applies the AASB 9 simplified approach to measuring expected credit losses, which uses a lifetime expected loss allowance for
all trade receivables and contract assets.
To measure the expected credit losses, trade receivables and contract assets have been grouped based on shared credit risk characteristics
and the days past due. The contract assets relate to unbilled work in progress and have substantially the same risk characteristics as the trade
receivables for the same types of contracts. The Company has therefore concluded that the expected loss rates for trade receivables are a
reasonable approximation of the loss rates for the contract assets.
(o)
Property, plant and equipment
The Company's accounting policy for plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure
that is directly attributable to the acquisition of the items. Cost may also include transfers from equity of any gains or losses on qualifying
cash flow hedges on foreign currency purchases of property, plant and equipment.
Subsequent costs are included in the carrying amount of an asset or recognised as a separate asset, as appropriate, only when it is probable
that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The
carrying amount of any component accounted for as a separate asset is derecognised when replaced.
Depreciation is calculated on a diminishing value basis or prime cost basis, as appropriate, to write off the net cost of each item of property,
plant and equipment (excluding land) over their expected useful lives.
The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date.
Leasehold improvements and plant and equipment under finance lease are depreciated over the unexpired period of the lease or the
estimated useful life of the assets, whichever is shorter.
(p)
Leases
The determination of whether an arrangement is or contains a lease is based on the substance of the arrangement and requires an
assessment of whether the fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys
a right to use the asset.
Management has adopted AASB 16 from 1 July 2019. As there were no operating leases at 30 June 2019, no adjustment to opening
accumulated losses was necessary - refer Note 1(w), for all leases except for short-term leases and leases of low-value assets.
Short -term leases and leases of low value, are charged to the statement of profit or loss and other comprehensive income on a straight-line
basis over the term of the lease.
48
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Proteomics International Laboratories Ltd
Proteomics International Laboratories Ltd
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
(q)
Trade and other payables
(v)
Goods and Services Tax (GST) and other similar taxes
These amounts represent liabilities for goods and services provided to the Company 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.
(r)
Provisions
Provisions are recognised when the Company has a present (legal or constructive) obligation as a result of a past event, it is probable the
Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount
recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting date, taking into
account the risks and uncertainties surrounding the obligation. If the time value of money is material, provisions are discounted using a
current pre-tax rate specific to the liability. The increase in the provision resulting from the passage of time is recognised as a finance cost.
(s)
Fair value measurement
When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the fair value is based on
the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date; and assumes that the transaction will take place either in the principle market; or in the absence of a principal market, in
the most advantageous market.
Fair value is measured using the assumptions that market participants would use when pricing the asset or liability, assuming they act in their
economic best interest. For non-financial assets, the fair value measurement is based on its highest and best use. Valuation techniques that
are appropriate in the circumstances and for which sufficient data are available to measure fair value, are used, maximising the use of
relevant observable inputs and minimising the use of unobservable inputs.
Assets and liabilities measured at fair value are classified into three levels, using a fair value hierarchy that reflects the significance of the
inputs used in making the measurements. Classifications are reviewed each reporting date and transfers between levels are determined
based on a reassessment of the lowest level input that is significant to the fair value measurement.
For recurring and non-recurring fair value measurements, external valuers may be used when internal expertise is either not available or
when the valuation is deemed to be significant. External valuers are selected based on market knowledge and reputation. Where there is a
significant change in fair value of an asset or liability from one period to another, an analysis is undertaken, which includes a verification of
the major inputs applied in the latest valuation and a comparison, where applicable, with external sources of data.
(t)
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.
(u)
Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to equity holders of Proteomics International Laboratories Ltd,
excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the
financial year, adjusted for bonus elements in ordinary shares issued during the financial year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax
effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted average number of shares
assumed to have been issued for no consideration in relation to dilutive potential ordinary shares.
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 either other receivables or in 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.
(w)
New Accounting Standards and Interpretations adopted
The following Accounting Standards and Interpretations are most relevant to the Company and have been adopted in the preparation of
financial statements:
(cid:891)
(cid:891)
AASB 16 - Leases (AASB 16)
International Financial Reporting Standard - IFRIC 23
AASB 16 Leases
AASB 16 has been adopted from 1 July 2019. The standard replaces AASB 117 "Leases" and for lesees eliminates the classifications of
operating leases and finance leases. Except for short-term leases and leases of low-value assets, right-of-use assets and corresponding lease
liabilities are recognised in the statement of profit or loss and other comprehensive income.
Straight-line operating lease expense recognition is replaced with a depreciation charge for the right-of-use assets (included in depreciation
expense) and an interest expense on the recognised lease liabilities (included in interest expense).
For classification within the statement of cash flows, the interest portion is included in interest paid and the principal portion of the lease
payments are separately dislosed as repayment of lease liabilites.
Impact of adoption
AASB 16 was adopted from 1 July 2019. There were no operating leases at 30 June 2019. The lease recognised in the financial statements is a
new lease, and therefore no adjustment to opening accumulated losses was necessary.
Right-of-use assets
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which comprises the
initial amount of the lease liability, adjusted for, as applicable, any lease incentives received. Right-of-use assets are depreciated on a straight-
line basis over the unexpired period of the lease or the estimated useful life of the asset, whichever is the shorter. Right-of-use assets are
adjusted for any remeasurement of lease liabilities.
Lease liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the net present value of the
lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease, or if that rate cannot be readily
determined, the Company's incremental borrowing rate.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured if there is a
change in the lease term or future lease payments arising froma change in an index or rate used. When a lease liability is remeasured, an
adjustment is made to the corresponding right-of-use asset.
Details of right-of-use assets are provided in note 8 and a maturity analysis of lease liabilities is provided in note 13.
International Financial Reporting Standard - IFRIC 23
IFRIC 23 provides guidance on the accounting for current and deferred tax liabilities and assets in circumstances in which there is uncertainty
over income tax treatments. The interpretation requires:
(cid:891)
(cid:891)
(cid:891)
The Company to determine whether uncertain tax treatments should be considered separately by each entity within the group, or
together as a group, based on which approach provides better predictions of the resolution;
The Company to determine if it is probable that the tax authorities will accept the uncertain tax treatment;
If it is not probable that the uncertain tax treatment will be accepted, measure the tax uncertainty based on the most likely
amount or expected value, depending on whichever method better predicts the resolution of the uncertainty. This measurement
is required to be based on the assumption that each of the tax authorities will examine amounts they have a right to examine and
have full knowledge of all related information when making those examinations.
50
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Proteomics International Laboratories Ltd
Proteomics International Laboratories Ltd
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
(x)
New Accounting Standards not yet Mandatory
2. LOSS FOR THE YEAR
In May 2019, the AASB issued a revised Conceptual Framework for Financial Reporting, to apply to periods beginning on or after 1 Jauary
2020.
Whilst not an accounting standard, the new conceptual framework seeks to provide guidance and assistance in relation to:
Loss for the full year included the following:
Notes
P
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L
Consolidated
Entity
2020
$
Consolidated
Entity
2019
$
(cid:891)
(cid:891)
(cid:891)
(cid:891)
(cid:891)
Concepts on presentation and disclosure, including classifying items as income vs other comprehensive income;
Concepts on measurement, including factors to consider when selecting a measurement basis (eg cost vs fair value);
Guidance on derecognition of assets and liabilities;
Definitions of an asset and a liability; and
Recognition criteria for including assets and liabilities in financial statements.
The Company will incorporate the above in the preparation of financial statements commencing 1 July 2020.
(a) Research & Development Tax incentive (i)
1,138,815
1,139,403
(b) Other expenses (income)
Unrealised foreign exchange losses (gains)
Realised foreign exchange losses
Loss on investment
(c) Employee and labour expenses
Salaries and wages
Other personnel costs
Superannuation
Increase in leave liabilities
Share based payments expense
1(h), 15
4,200
9,978
-
1,805,722
114,776
172,112
34,421
2,127,031
112,715
2,239,746
( 2,177)
1,903
249,499
1,631,377
96,743
153,934
50,860
1,932,914
222,812
2,155,726
(i) Research & Development Tax incentive
The Company undertakes a substantial amount of research in its daily activities. The Company has registered its activities and is able to claim a
tax incentive (rebate) each year based on eligible research and development costs incurred during a financial year. The amount of the incentive
(rebate) is included as an income item in the consolidated statement of profit or loss and other comprehensive income for the year ended 30
June 2020, and the corresponding receivable included in the consolidated statement of financial position. The receipt of the tax incentive will
occur in the year ended 30 June 2021.
3.
INCOME TAX EXPENSE / (BENEFIT)
(a) Income tax expense / (benefit)
Current tax / (over provision in prior year)
Deferred tax
(b) Numerical reconciliation of income tax to prima facie tax
Consolidated
Entity
2020
$
Consolidated
Entity
2019
$
-
-
-
-
(Loss) from continuing operations
( 1,743,770)
( 2,080,275)
Tax at the Australia tax rate 27.5% (2019 27.5%)
( 479,537)
( 572,076)
Tax effect of the amounts that are not deductible / (taxable) in
calculating taxable income
- Share based payments
- Research and development tax incentive
- Reduction in loss for tax incentive
30,997
( 313,174)
761,714
-
61,273
( 313,336)
824,139
-
52
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Proteomics International Laboratories Ltd
Proteomics International Laboratories Ltd
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
3.
INCOME TAX EXPENSE / (BENEFIT) (continued)
(c) Tax losses
Unused tax losses for which no deferred tax assets have been recognised
Australian losses
Potential tax benefit at 27.5% (2019 27.5%)
Consolidated
Entity
2020
$
Consolidated
Entity
2019
$
2,356,999
648,175
2,081,773
572,448
The tax benefits of the above deferred tax assets will only be obtained if:
(i)
the Company derives future assessable income of a nature and of an amount sufficient to enable the benefits to be utilised;
(ii)
(iii)
the Company continues to comply with the conditions for deductibility imposed by law; and
no changes in income tax legislation adversely affects the Company in utilising the benefits.
(d) Unrecognised temporary differences
Provisions
Accruals
Tax losses
4. RECONCILIATION OF CASH
Cash at bank
Deposits at call
987
34,271
2,356,999
2,392,257
( 4,372)
50,860
2,081,773
2,128,261
Notes
2,315,022
50,000
2,365,022
461,430
1,050,000
1,511,430
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
5. REVENUE
The Company has disaggregated revenue into various categories which is intended to:
(cid:891)
(cid:891)
Depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors; and
Enable users to understand the relationship with revenue information in the statement of profit or loss and other comprehensive income.
Product Type
PromarkerD
Analytical Services
Timing of Transfer of Goods and Services
Point in time
Over Time
Primary Geographic Markets
Australia and NZ
USA (and Territories)
Europe
India
SE Asia
6. TRADE AND OTHER RECEIVABLES
Trade receivables
Other receivables - GST Receivable
Consolidated
Entity
2020
$
-
1,423,070
1,423,070
Consolidated
Entity
2019
$
175,685
1,292,391
1,468,076
-
1,423,070
1,423,070
-
1,468,076
1,468,076
999,261
130,313
55,030
213,000
25,466
1,423,070
823,825
282,614
257,768
75,393
28,476
1,468,076
328,662
35,925
364,587
464,922
36,473
501,395
(a) Classification of trade and other receivables
Trade receivables are amounts due from customers for services performed in the ordinary course of business. The trade receivables are
generally due for settlement within 60 days and therefore are classified as current.
Reconciliation of loss after income tax to net cash flows from operations activities
(b) Fair value of trade and other receivables
Loss for the year
Depreciation
Share based payments expense
Share issue in lieu of cash payment
Loans to employees
Sale of investment in CPR Pharma Services Pty Ltd
(Increase) / decrease in trade and other debtors
(Increase) / decrease in other assets
Increase / (decrease) in trade and other creditors
Increase / (decrease) in provisions
Refer to Note 18 for further information on risk exposure.
1(h), 15
( 1,743,770)
( 2,080,275)
363,708
112,715
36,000
57,500
-
136,808
5,384
612,270
34,877
188,293
222,812
48,630
-
( 928,399)
101,875
816,267
( 87,072)
50,860
( 384,508)
( 1,667,009)
54
Due to the short-term nature of the current receivables, their carrying amount is assumed to be the same as their fair value.
The Company has adopted the simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all
trade receivables. The expected credit loss is deemed to be $nil.
Receivables includes service related revenue for which payment has been delayed due to the COVID-19 pandemic.
Refer to Note 18 for further information on risk exposure.
(c)
(d)
(e)
7. OTHER ASSETS
Current:
Research and development tax incentive (see note 2(i))
Export Market Development Grant
Contract asset
Unsecured Loans (i)
Prepayments (ii)
Non-current:
Security Deposit - equipment leases
(i)
(ii)
(iii)
unsecured loans to selected employees
comprises prepaid insurance and prepaid legal fees
Refer to Note 18 for further information on risk exposure.
$
$
1,138,815
-
134,398
57,500
57,284
1,387,997
-
-
1,139,403
54,749
-
-
35,548
1,229,700
163,681
163,681
55
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Proteomics International Laboratories Ltd
Proteomics International Laboratories Ltd
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
8. RIGHT-OF-USE ASSET
11. PROVISIONS
The Company entered into a facility licence agreement with the Harry Perkins Institute of Medical Research, whereby the Company was
granted the right to occupy laboratory and office premises for a period of three years commencing 1 July 2019.
The Company has recognised this as a right-of-use asset.
The right-of-use asset is depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis.
Consolidated
Consolidated
Right-of-use asset
Accumulated depreciation
9. PROPERTY, PLANT AND EQUIPMENT
Cost (i)
Accumulated depreciation
Closing Net Book Value
Reconciliation:
Opening net book value
Additions
Disposals
Depreciation charge
Closing Net Book Value
(i) includes capitalised leased assets
10. TRADE AND OTHER PAYABLES
Current:
Trade payables
Other payables
Deferred Grant Income - refer Note 1(k)
Contract Liability - refer Note 13
Non-current:
Deferred Grant Income - refer Note 1(k)
Entity
2020
$
191,737
( 63,912)
127,825
2,257,098
( 948,821)
1,308,277
213,677
1,394,396
-
( 299,796)
1,308,277
181,996
77,940
187,752
-
447,688
334,803
334,803
Entity
2019
$
-
-
-
844,379
( 630,702)
213,677
363,979
37,991
-
( 188,293)
213,677
224,757
71,447
-
6,860
303,064
-
-
Current:
Fringe Benefits Tax
Employee benefits - annual leave
Non-current
Employee benefits - long service leave
12. BORROWINGS
Current:
Finance Leases (a)
Non-current
Finance Leases (a)
(a) Finance Leases:
Commitments in relation to finance leases are payable as follows:
Within one year
Later than one year but no later than five years
Minimum lease payments
Future finance charges
Recognised as a liability
Lease Liability - current
Lease Liability - non-current
Recognised as a liability
Terms of the Finance Leases
The company leased laboratory equipment under finance lease agreements.
The security deposit held by the bank over this equipment was released back into the Company's cash flow.
13. LEASE LIABILITY
The Company entered into a facility licence agreement with the Harry Perkins Institute of Medical Research, whereby the Company was
granted the right to occupy laboratory and office premises for a period of three years commencing 1 July 2019.
The Company has recognised a lease liability as at 1 July 2019 and at 30 June 2020.
(a) Classification of trade and other payables
Trade payable are unsecured and are usually paid within 60 days or recognition and therefore are classified as current.
(b) Fair value of trade and other payables
The carrying amount of trade and other payables are assumed to be the same as their fair value, due to their short-term nature.
(c) Refer to Note 18 for further information on risk exposure.
Current:
Lease liability
Non-current
Lease liability
56
63,799
63,799
69,044
69,044
-
-
-
-
57
P
I
L
L
Consolidated
Consolidated
Entity
2020
$
456
110,528
110,984
Entity
2019
$
-
99,424
99,424
90,501
67,184
-
-
-
-
-
-
-
-
-
-
146,591
18,330
155,142
18,889
174,031
( 9,110)
164,921
146,591
18,330
164,921
Proteomics International Laboratories Ltd
Proteomics International Laboratories Ltd
P
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P
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
14. ISSUED CAPITAL
Ordinary Shares
Total consolidated issued capital
Movement in share capital
Date
Details
1/07/2019
1/10/2019
31/10/2019
25/11/2019
31/05/2020
30/06/2020
Opening balance
Issue of shares (i)
Exercise of options (ii)
Issue of shares (iii)
Exercise of options (iv)
Less: Transaction costs
Closing balance
2020
Shares
2019
Shares
2020
$
2019
$
92,405,875
80,686,965
13,391,543
10,537,267
Number of
shares 2020
Amount
$
80,686,965
10,537,267
110,770
225,000
36,000
67,500
10,858,140
3,040,279
525,000
157,500
( 447,003)
92,405,875
13,391,543
(i)
(ii)
(iii)
(iv)
Issued to Director Paul House in lieu of cash payment for director's fees and pursuant to the
Director Fee Plan approved by shareholders.
Employees exercised unquoted employee options pursuant to an Employee Incentive Option
Plan.
Issued following placement to new and existing institutional, sophisticated and professional
investors.
Employees exercised unquoted employee options pursuant to an Employee Incentive Option
Plan.
Date
Details
1/07/2018
22/11/2018
3/12/2018
7/01/2019
22/01/2019
20/05/2019
20/06/2019
30/06/2019
Opening balance
Issue of shares (i)
Exercise of options (ii)
Exercise of options (ii)
Exercise of options (ii)
Exercise of options (ii)
Exercise of options (ii)
Closing balance
Number of
shares 2019
$
80,098,871
10,369,887
113,094
100,000
100,000
100,000
75,000
100,000
48,630
25,000
25,000
25,000
18,750
25,000
80,686,965
10,537,267
(i)
(ii)
Issued to Director Paul House in lieu of cash payment for director's fees and pursuant to the
Director Fee Plan approved by shareholders.
Consultant Canary Capital exercised 475,000 options during the year.
Ordinary shares
Ordinary shares entitle the holder to participate in dividends, and to share in the proceeds of winding up of the Company in proportion to the
number of and amounts paid on the shares held.
On a show of hands every holder of ordinary shares present at a meeting in person or by proxy, is entitled to one vote, and upon a poll each
share is entitled to one vote.
Ordinary shares have no par value and the Company does not have a limited amount of authorised capital.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
15. OPTIONS
(a) Options - Issued
Options exercisable at $0.25 each
Options exercisable at $0.30 each
Options exercisable at $0.35 each
Options exercisable at $0.50 each (iv)
Options exercisable at $0.50 each
Options exercisable at $0.50 each
Options exercisable at $0.67 each (v)
Total issued options
Movement in options issued
As at 1 July
Exercised during the period
Options lapsed during the period (i)
Exercise of options during the period (ii)
Options lapsed during the period (ii)
Options lapsed during the period (i)
Issued during the period (iv)
Issued during the period (iii)
Issued during the period (ii)
Issued during the period (v)
As at 30 June
2020
Options
2019
Options
-
-
-
400,000
3,040,279
550,000
400,000
4,390,279
25,000
1,750,000
500,000
400,000
-
-
400,000
3,075,000
2020
2019
Average
exercise
price
$0.26
$0.25
$0.25
$0.30
$0.30
$0.35
-
-
$0.50
$0.50
$0.46
Number of
Options
3,075,000
-
( 25,000)
( 750,000)
( 1,000,000)
( 500,000)
-
3,040,279
550,000
-
4,390,279
Average
exercise
price
$0.30
$0.25
$0.25
$0.30
$0.30
$0.35
$0.50
-
-
$0.67
$0.26
Number of
Options
2,750,000
( 475,000)
-
-
-
-
400,000
-
-
400,000
3,075,000
Issued options outstanding at the end of the year have the following expiry date and exercise price:
Grant Date
21/11/2018 (iv)
21/11/2018 (v)
27/03/2020 (iii)
11/05/2020 (ii)
Expiry Date
Exercise Price
No. Options
22/11/2021
22/11/2022
27/03/2023
1/05/2023
$0.50
$0.67
$0.50
$0.50
400,000
400,000
3,040,279
550,000
(i)
(ii)
(iii)
(iv)
(v)
Unlisted - issued to consultants, Canary Capital, for nil consideration and being for part
consideration for services rendered.
Unlisted - employee options issued to employees of the Company for nil consideration
under an Employee Incentive Option Plan.
Unlisted - issued to corporate advisors - Alto Capital & Adelaide Equity Partners for
$0.00010 consideration.
Unlisted - Director A options issued to Directors - Terry Sweet, Ian Roger Moore and Paul
House - for nil consideration and issued as a reward and incentive.
Unlisted - Director B options issued to Directors - Terry Sweet, Ian Roger Moore and Paul
House - for nil consideration and issued as a reward and incentive.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
15. OPTIONS (continued)
(a) Fair Value of Employee Options
Particulars
Number of employee options
Valuation date
Expiry date
Underlying share price used
Exercise price
Risk-free rate
Volatility
Dividend yield
Valuation per Option
Input
550,000
11 May 2020
1 May 2023
$0.36
$0.50
0.24%
84%
nil
$0.1603
Proteomics International Laboratories Ltd
Proteomics International Laboratories Ltd
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
15. OPTIONS (continued)
(b) Options - Unissued
Consultant Options - Candour Advisory Pty Ltd
Consultant Options - Adelaide Equity Partners Limited (i)
Consultant Options - Scintilla Funds Management Pty Ltd (i)
Total Unissued options
Fair Value of Consultant Options - Candour Advisory Pty Ltd
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2020
Options
1,250,000
-
-
1,250,000
2019
Options
-
1,250,000
500,000
1,750,000
These Employee Options are valued at $88,177 and this amount is included in the share based payment expense for the year ended 30
June 2020.
The Company has used the Black Scholes Model to value the Employee Options.
(b) Fair Value of Corporate Advisory Options - Alto Capital and Adelaide Equity Partners
Alto Capital and Adelaide Equity Partners Limited acted as lead manager and corporate advisor respectively to the $3.0 million share
placement undertaken by the Company on 15 November 2019. The issue of these Corporate Advisory Options was announced to the ASX
on 25 November 2019 at which time the Corporate Advisory Options were unissued, but valued at $328,623.
On 27 March 2020, these Corporate Advisory Options were subsequently issued (ASX announcement 27 March 2020) by the payment of
$0.0001 per option ($304). These Corporate Advisory Options were therefore revalued to be $228,074, and the details are as follows:
Particulars
Input
Number of consultant options
Valuation date
Expiry date
Underlying share price used
Exercise price
Risk-free rate
Volatility
Dividend yield
Valuation per Option
3,040,279
27 March 2020
27 March 2023
$0.23
$0.50
0.275%
80%
nil
$0.0750
The value placed on these Corporate Advisory Options represents a cost in relation to the capital raising, and as such, this share based
payment expense is included in share issue costs for the year ended 30 June 2020.
The Company has used the Black Scholes Model to value the Corporate Advisory Options.
The company agreed, pursuant to a corporate advisory mandate dated 24 April 2020, to issue a total of 1,250,000 unlisted options
(Consultant Options) exercisable at $0.50 each on or before 24 April 2023.
The issue of Consultant Options is subject to Proteomics International Laboratories Limited shares achieving a 20 day VWAP of
$0.45. As at the date of this report, the Consultant Options remain unissued, and are valued as follows:
Particulars
Candour Advisory Pty Ltd
Number of consultant options
Valuation date
Expiry date
Underlying share price used
Exercise price
Risk-free rate
Volatility
Dividend yield
Valuation per Option
1,250,000
24 April 2020
24 April 2023
$0.31
$0.50
0.27%
85%
nil
$0.0199
These options were granted in April 2020 and valued using a Barrier-up-and-in Trinomial Option Pricing model and vest over the
vesting period of 3 years.
(i) Consultant Options - Adelaide Equity Partners Limited and Scintilla Funds Management Pty Ltd
The company agreed, pursuant to a corporate advisory mandate, the terms of which were announced to the ASX on 14 November
2018, to issue 1,250,000 unlisted options to Adelaide Equity Partners Limited and 500,000 unlisted options to Scintilla Funds
Management Pty Ltd.
The agreement with Adelaide Equity Partners Limited ended on 17 April 2020, and the entitlement to the 1,250,000 options also
ended on 17 April 2020.
The agreement with Scintilla Funds Management Pty Ltd ended on 30 June 2019, and the entitlement to the 500,000 options
ended on 31 December 2019.
(c) Share based payments expense
Share based payments expense comprising:
Director options
Consultant options (refer Note 15a)
Employee share scheme
Consolidated
Entity
2020
$
Consolidated
Entity
2019
$
-
24,538
88,177
112,715
179,062
43,750
-
222,812
60
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
16. RESERVES
(a) Share based payments reserve comprising:
(i) Payments to consultants
(ii) Employee share scheme
(iii) Director A & B options
(b) Option reserve
(a) Share based payments reserve
(i) Share based payments to consultants:
Consolidated
Entity
2020
$
Consolidated
Entity
2019
$
456,166
208,577
179,062
210,295
1,054,100
203,250
120,400
179,062
210,295
713,007
2020
Options
2019
Options
2020
$
2019
$
Consultants - unlisted options
4,290,279
2,275,000
456,166
408,645
Movements in share based payments to consultants: Consultants - unlisted options
Date
1/07/2019
17/07/2019
31/12/2019
8/03/2020
27/03/2020
17/04/2020
24/04/2020
30/06/2020
Date
1/07/2018
13/11/2018
3/12/2018
7/01/2019
22/01/2019
20/05/2019
20/06/2019
30/06/2019
Details
Opening balance
Options lapsed
Options lapsed
Options lapsed
Issue of unlisted options
Options lapsed
Issue of unlisted options (refer Note 15 (a))
Closing balance
Details
Opening balance
Issue of unlisted options
Exercise of options
Exercise of options
Exercise of options
Exercise of options
Exercise of options
Closing balance
Refer to Note 15 for further information.
Number of
options
2,275,000
( 25,000)
( 500,000)
( 500,000)
3,040,279
( 1,250,000)
1,250,000
4,290,279
Number of
options
1,000,000
1,750,000
( 100,000)
( 100,000)
( 100,000)
( 75,000)
( 100,000)
2,275,000
$
203,250
-
-
-
228,074
-
24,842
456,166
$
159,500
43,750
-
-
-
-
-
203,250
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
16. RESERVES (continued)
(ii) Employee share scheme
Employee - unlisted options
2020
Options
550,000
2019
Options
1,750,000
2020
$
208,577
2019
$
120,400
Movements in employee share scheme: Employee - unlisted options
Date
1/07/2019
31/10/2019
31/10/2019
31/05/2020
31/05/2020
11/05/2020
30/06/2020
Date
1/07/2018
30/06/2019
Details
Opening balance
Exercise of options
Options lapsed
Exercise of options
Options lapsed
Issue of unlisted options
Closing balance
Details
Opening balance
Closing balance
Number of
options
1,750,000
( 225,000)
( 425,000)
( 525,000)
( 575,000)
550,000
550,000
Number of
options
1,750,000
1,750,000
$
120,400
-
-
-
-
88,177
208,577
$
120,400
120,400
Refer to Note 15 for further information.
(iii) Director A & B options
2020
Options
2019
Options
2020
$
2019
$
Director A & B - unlisted options
800,000
800,000
179,062
179,062
Movements in director A & B options: Director A & B - unlisted options
Date
1/07/2019
30/06/2020
Date
1/07/2018
22/11/2018
22/11/2018
30/06/2019
Details
Opening balance
Closing balance
Details
Opening balance
Issue of Director A options
Issue of Director B options
Closing balance
Refer to Note 15 for further information.
Number of
options
800,000
800,000
Number of
options
-
400,000
400,000
800,000
$
179,062
179,062
$
-
88,412
90,650
179,062
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
16. RESERVES (continued)
(b) Option reserve
Total consolidated issued options - listed
-
-
210,295
210,295
2020
Option
2019
Option
2020
$
2019
$
Movements in issued options: Consolidated issued options - listed
Date
1/07/2019
30/06/2020
Details
Opening balance
Closing balance
No options expired during the year ended 30 June 2020
Date
1/07/2018
30/06/2019
Details
Opening balance
Closing balance
17. ACCUMULATED LOSSES
Opening balance
Loss for the year
Closing balance
Number of
options
-
-
Number of
options
-
-
$
210,295
210,295
$
210,295
210,295
Consolidated
Entity
2020
$
Consolidated
Entity
2019
$
( 8,263,972)
( 1,743,770)
( 6,183,697)
( 2,080,275)
( 10,007,742)
( 8,263,972)
Proteomics International Laboratories Ltd
Proteomics International Laboratories Ltd
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
18. FINANCIAL RISK MANAGEMENT
The activities of the Company expose it to a variety of financial risks (including interest rate risk, credit risk and liquidity risk). The
Company's overall risk management program focuses on the unpredictability of the financial markets and seeks to minimise potential
adverse effects on the financial performance of the Company. However, the Company uses different methods to measure different
types of risk to which it is exposed. These methods include sensitivity analysis in the case of interest rate risk and aging analysis for
credit risk. At present the Company is not exposed to price risk.
Risk management is carried out by the Board of Directors with assistance from suitably qualified external advisors where necessary.
The Board provides written principles for overall risk management and further policies will evolve commensurate with the evolution
and growth of the Company.
The Company holds the following financial instruments:
Financial assets
Cash and cash equivalents
Trade and other receivables (a)
Loans to Employees
Research & Development tax incentive (b)
Financial liabilities
Trade and other payables (c)
Borrowings and lease liabilities
Consolidated
Entity
2020
$
Consolidated
Entity
2019
$
2,365,022
463,060
57,500
1,138,815
4,024,397
1,511,430
683,352
-
1,139,403
3,334,185
( 782,491)
( 132,843)
( 915,334)
( 303,064)
( 164,921)
( 467,985)
(a) excludes GST receivables and prepayments
(b) the receipt of the Research & Development tax incentive will occur in the year ending 30 June 2021
(c) excludes GST payable and employee benefits
The main purpose of the financial instruments is to fund the Company's operations.
It is, and has been throughout the period under review, the Company's policy that no trading in financial instruments for the purpose
of limiting exposure to operational risk shall be undertaken. The main risk is cash flow (interest rate risk, liquidity risk and credit risk).
The Board reviews and agrees policies for managing each of these risks and they are summarised below:
(a) Market Risk
(i) Cash flow and interest rate risk
The Company's only interest rate risk arises from cash and cash equivalents held. Term deposits and current accounts held with
variable interest rates expose the Company to cash flow interest rate risk. The Company does not consider this to be material and
has therefore not undertaken any further analysis of risk exposure.
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Proteomics International Laboratories Ltd
Proteomics International Laboratories Ltd
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
18. FINANCIAL RISK MANAGEMENT (continued)
18. FINANCIAL RISK MANAGEMENT (continued)
The following sets out the Company's exposure to interest rate risk, including the effective weighted average interest rate by maturity
periods.
(c) Liquidity Risk
Details
Note
Weighted Average
Interest Rate
Total
$
30 June 2020 Consolidated
Financial assets
Cash and cash equivalents
30 June 2019 Consolidated
Financial assets
Cash and cash equivalents
0.89%
2,365,022
3.19%
1,511,430
All other financial instruments have either a zero coupon rate or a fixed interest rate.
Sensitivity
At 30 June 2020, if interest rates had increased by 0.25% or decreased by 0.25% from the year end rates with all other variables held
constant, post-tax loss for the year would have been $1,552 lower / ($1,552) higher (2019 changes of 0.25% / 0.25%: $6,636 lower/ ($6,636)
higher), mainly as a result of higher / lower interest income from cash and cash equivalents.
(ii) Foreign currency risk
The Company is exposed to movements in foreign exchange due to the number of clients that the Company currently works with overseas.
The Company does not currently hedge its exposure to foreign currency sales and therefore the impact on the financial statements at year
end for foreign currency movements is below:
Exposure
Trade receivables
30 June 2020
USD
213,748
JPY
-
30 June 2019
USD
182,520
JPY
240
Sensitivity
The sensitivity of the profit or loss to changes in exchange rates arising in mainly USD/AUD denominated financial instruments and the impact
of the other components of equity is listed below:
USD/AUD exchange rate - increase 5%
USD/AUD exchange rate - decrease 15%
(b) Credit risk
Impact on post tax profits
2020
2019
$
$
( 11,571)
( 14,803)
29,580
54,861
Impact on equity
2020
$
2019
$
14,803
( 54,861)
11,571
( 42,915)
Credit risk is managed on a group basis. Credit risk arises from cash and cash equivalents and deposits with banks and financial institutions, as
including outstanding receivables and committed transactions. For banks and financial
well as credit exposures to retail customers,
institutions, only independently rated parties with a minimum rating of 'A' are accepted. Otherwise, if there is no independent rating, the
board assesses the credit quality of the customer, taking into account its financial position, past experience and other factors. Individual risk
limits are set based on internal or external ratings in accordance with limits set by the board. The compliance with credit limits by customers
is regularly monitored by the Managing Director. Sales to retail customers are required to be settled in cash (in part, in advance) or using
major financial institutional payment processes, to mitigate credit risk.
Financial assets
Cash and cash equivalents
The Company's financier has an AA Moody's rating.
Consolidated
Entity
2020
$
Consolidated
Entity
2019
$
2,365,022
1,511,430
Prudent liquidity risk management implies maintaining sufficient cash balances and access to equity funding.
The Company's exposure to the risk of changes in market interest rates relates primarily to cash assets and floating interest rates.
The Company does not have significant interest-bearing assets (other than cash) and is not materially exposed to changes in market
interest rates due to the unprecedented low interest rates.
The Directors monitor the cash-burn rate of the Company on an ongoing basis against budget. As at the reporting date the Company
had sufficient cash reserves to meet its requirements. The Company has no access to credit standby facilities or arrangements for
further funding or additional capacity in its borrowing arrangements.
The financial liabilities the Company had at reporting date were trade payables incurred in the normal course of the business. These
were non-interest bearing and were due within the normal 30-60 days terms of creditor payments.
Maturities of financial liabilities
The table below analyses the Company's financial liabilities into relevant maturity groupings based on the remaining period at the
reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.
(i) Assessment of contractual cash flows
Contractual
maturities
of financial
liabilities
As at 30 June 2020
Non-derivatives
Non-interest bearing
Trade payables
Interest bearing
Borrowings
Lease Liability
Total non-derivative
Contractual
maturities
of financial
As at 30 June 2019
Non-derivatives
Non-interest bearing
Trade payables
Interest bearing
Borrowings
Total non-derivative
Less than
6 Months
$
6 - 12
Months
$
Between
Between
1 and 2 years
$
2 and 5 years
$
Total
Contractual
Cash Flows
$
Carrying
Amount
$
181,996
-
-
-
35,016
217,012
-
35,016
35,016
-
71,292
71,292
-
-
-
-
181,996
181,996
-
141,324
323,320
-
132,843
314,839
Less than
6 Months
$
6 - 12
Months
$
Between
Between
1 and 2 years
$
2 and 5 years
$
Total
Contractual
Cash Flows
$
Carrying
Amount
$
224,757
-
-
87,228
311,985
67,914
67,914
18,889
18,889
-
-
-
224,757
224,757
174,031
398,788
164,921
389,678
(ii) Financing arrangements
The Company has a $50,000 overdraft facility with its financial institution in place as at 30 June 2020.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
18. FINANCIAL RISK MANAGEMENT (continued)
(d) Fair Value Estimation
The fair value of financial assets and liabilities must be estimated for recognition and measurement and for disclosure purposes.
The carrying value less impairment provision of receivables and trade payables are assumed to approximate their fair values due to
their short-term nature.
(e) Capital management
When managing capital, the Board's objective is to ensure the Company continues as a going concern was well as to maintain optimal
returns to shareholders and benefits for other stakeholders. The Board also aims to maintain a capital structure that ensures the
lowest cost of capital available to the Company.
The Board is constantly adjusting the capital structure to take advantage of favourable costs of capital or high return on assets. As
the market is constantly changing, the board may issue new shares, sell assets to reduce debt or consider payment of dividends to
shareholders.
The Board seeks to maintain a balance between the higher returns that might be possible with higher levels of borrowings and the
advantages and security afforded by a sound capital position although there is no formal policy regarding gearing levels.
There were no changes in the Company's approach to the capital management during the year ended 30 June 2020.
The Company is not subject to any externally imposed capital requirements.
Class of
share
Country of
Incorporation
Equity Holding
2020
2019
%
%
19. CONSOLIDATED ENTITIES
Name of entity
Accounting Parent
Proteomics International Pty Ltd
Legal Parent
Proteomics International
Laboratories Ltd
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
20. REMUNERATION OF AUDITORS
(a) Audit services
- BDO Audit (WA) Pty Ltd
(b) Non-audit services
- BDO Corporate Finance
- BDO Corporate Tax (WA) Pty Ltd (i)
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Consolidated
Entity
2020
$
Consolidated
Entity
2019
$
47,454
43,848
-
5,120
-
-
(i) Consulting services have been provided by BDO Corporate Tax during the year ended 30 June 2020.
21. COMMITMENTS
Laboratory access fees
Within one year
Later than one year but no later than five years
Later than five years
22,000
-
-
22,000
48,700
-
-
48,700
22. RELATED PARTIES
(a) Key management personnel (KMP) compensation
Short-term employee benefits
Post-employment benefits
Director A and B Options
The directors of the Company comprise the key management personnel.
Compensation is paid to the directors individually.
(b) Options disclosure to KMP's
376,000
58,636
-
434,636
337,915
35,471
179,062
552,448
Australia
100
100
The disclosure that relates to options terms and conditions and the valuation inputs can be found at Note 14.
Ordinary
Australia
-
(c) Transactions with KMP's
During the year ended 30 June 2020, consultancy services were provided by Ian Roger Moore for business development in the
amount of $2,065 (2019 $11,286) on terms no more favourable than those reasonably expected under (cid:258)(cid:396)(cid:373)(cid:859)(cid:400) length dealings with
unrelated persons.
No loans were provided by Key Management Personnel during the year ended 30 June 2020.
The Company has no formal financing and gearing policy or criteria having regard to the early status of its development and low level
of activity.
The Company pays fees to access strategic locations to use laboratories and specialised equipment to undertake its operations.
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Proteomics International Laboratories Ltd
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
23. DIVIDENDS
28. PARENT ENTITY INFORMATION
The directors have not paid or declared a dividend during the financial year ended 30 June 2020.
24. CONTINGENT LIABILITIES
The Company is not aware of any material contingent liabilities for the year ended 30 June 2020.
25. SEGMENT REPORTING
The Board monitors the operations of the Company as one single segment. The actual to budget items and a detailed profit or loss
are reported to the board to assess the performance of the Company.
The Board has determined that strategic decision making is facilitated by evaluation of the operations of the legal parent and
subsidiary which represent the operational performance of the (cid:18)(cid:381)(cid:373)(cid:393)(cid:258)(cid:374)(cid:455)(cid:859)(cid:400) revenues and the research and development activities as
well as the finance, treasury, compliance and funding elements of the Company.
26. LOSS PER SHARE
(loss) attributable to ordinary shareholders
Consolidated
Entity
2020
$
Consolidated
Entity
2019
$
( 1,743,770)
( 2,080,275)
Weighted average number of ordinary shares*
87,415,789
80,326,284
The following information relates to the legal parent entity, Proteomics International Laboratories Ltd, as at 30 June 2020. The
information presented here has been prepared using consistent accounting policies as presented in Note 1.
Current assets
Non-current assets
Total Assets
Current liabilities
Non-current liabilities
Total Liabilities
Total Equity
(Loss) for the year
Other comprehensive income / (loss) for the year
Total comprehensive (loss) for the year
Contingent liabilities of the parent entity
The Company is not aware of any material contingent liabilities for the year ended 30 June 2020.
Commitments of the parent entity
2020
$
2019
$
4,510,692
-
2,893,557
163,681
4,510,692
3,057,238
72,791
-
72,791
70,936
-
70,936
4,437,901
2,986,302
( 203,348)
( 561,941)
-
-
( 203,348)
( 561,941)
Loss per share
( $0.02)
( $0.03)
Other than as decribed at Note 13, the Company does not have any other on-going commitments.
*Includes the effect of the transactions (under continuation accounting) for the purpose of the comparative earnings per share
calculation.
27. EVENTS OCCURRING AFTER THE REPORTING PERIOD
On 27 July 2020, Proteomics International announced that the Company has secured patents for PromarkerD for the potentially
substantial markets of Brazil, which has 16.8 million adults with diabetes, and Canada, which has 2.8 million. Together the
Company's granted patents and trademarks cover 273 million (59%) of the addressable diabetes patient population globally.
The impacts of the coronavirus SARS-CoV-2 and the COVID-19 pandemic (COVID-19) on the Company's operations is being
monitored. It is not practicable to estimate the potential impact, positive or negative, after the reporting date. The situation is
changeable 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.
Other than the above, there have been no subsequent events which would have a material effect on the Company's operations.
29. INTERESTS IN OTHER ENTITIES
The Company does not currently have any interests in other entities.
30. DEED OF CROSS GUARANTEE
The Company has not currently entered into a deed of cross guarantee.
31. ASSETS PLEDGED AS SECURITY
The Company has no assets that have been pledged as security.
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Directors’ Declaration
The Directors of the Company declare that:
Proteomics International Laboratories Ltd
Proteomics International Laboratories Ltd
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Independent Auditor’s Report
1.
The financial statements, comprising the consolidated statement of profit or loss and other comprehensive income, consolidated
statement of financial position, consolidated statement of cash flow, consolidated statements of changes in equity, accompanying
notes, are in accordance with the Corporations Act 2001 and:
(a)
(b)
comply with Accounting Standard, the Corporations Regulations 2001, other mandatory professional reporting
requirements; and
give a true and fair view of the financial position as at 30 June 2020 and the performance for the year ended on that date of
the consolidated entity; and
(c)
comply with International Financial Reporting Standards as disclosed in Note 1.
2.
3.
In the Directors' opinion, 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 remuneration disclosures included in the Directors' Report (as part of the Remuneration Report) for the year ended 30 June
2020 comply with Section 300A of the Corporations Act 2001 .
4.
The Directors have been given the declarations by the Managing Director required by Section 295A of the Corporations Act 2001 .
This declaration is made in accordance with a resolution of the Board of Directors and is signed for and on behalf of the directors by:
Terry Sweet
Chairman
Perth, Western Australia
Dated:
31 August 2020
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Shareholder Information
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Glossary
ACR and eGFR
Albumin Creatinine Ratio (ACR) is a urine test and the estimated Glomerular
Filtration rate (eGFR) is a blood test, each used for the diagnosis of chronic
kidney disease.
AUC/ROC curve
Area Under the Curve (AUC) in a receiver operating characteristic (ROC) curve, is a
graphical plot that illustrates the performance of a classifier system.
Biologics
Biomarker
Biosimilars
The conventional interpretation of the clinical significance of the ROC curve
AUC is: >0.7 acceptable discrimination; >0.8 excellent discrimination;
> 0.9 outstanding discrimination.
Medicinal protein products manufactured in or extracted from biological
sources.
A measurable indicator of a state or condition, usually relating to early phase of
diseases; a biological signature.
Protein-based molecules that are biological medical products made to mimic an
original drug.
Complementary diagnostic (CDx) A complementary diagnostic is a test that aids in the benefit-risk decision
making about the use of the therapeutic product for a given patient, where the
difference in benefit-risk is clinically meaningful.
Diabetes
A group of metabolic diseases associated with high blood sugar levels.
Diabetic kidney disease
(nephropathy)
A progressive disease of the kidneys caused by diabetes and leading to the
malfunction of the kidneys and ultimately renal failure.
Drug discovery
The process of testing new molecules in the search for new therapeutic
molecules.
End stage renal disease (ESRD)
Immunoassay
Mass Spectrometry
Kidney failure or ESRD is the final stage of kidney disease. Kidney failure means
the use of dialysis or transplantation is required for survival. Diabetes is the most
common cause of ESRD.
A procedure for detecting or measuring specific proteins or other substances
through the use of antibodies.
The measurement of the mass to charge ratio of a molecule such as a peptide in
order to determine its chemical structure.
Negative Predictive Value (NPV)
The probability that people who get a negative test result truly do not have the
disease. In other words, it is the probability that a negative test result is accurate.
Odds Ratio (OR)
A measure of association between two events. It can be used to determine
whether a particular exposure is a risk factor for a particular outcome. In clinical
research it gives direct information to doctors about which treatment approach
has the best odds of benefiting the patient.
Positive Predictive Value (PPV)
The probability that a patient with a positive (abnormal) test result actually has
the disease.
Probability (P)
The P value, or calculated probability, that an observation is true. Most authors
refer to statistically significant as P < 0.05 and statistically highly significant as
P < 0.001 (less than one in a thousand chance of being wrong).
Proteomics
The large-scale study of protein structure and function.
Sensitivity (true positive rate)
The ability of a test to correctly identify those with the disease.
Specificity (true negative rate)
The ability of the test to correctly identify those without the disease.
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Why are proteins important?
Genomes are static - the genes
we are born with are the genes
we die with, but the protein
make up in our bodies differs
from cell to cell and changes
considerably over time.
Cells use the instructions in our
genes to make proteins.
Proteins are the operational molecules of life and carry out the
functions of living organisms.
The caterpillar and the butterfly have exactly the same
genome. The proteins that their cells make are why they are
different. Looking at the differences in protein composition
can tell us about the state of life, and health, of any organism.
Proteomics is the study of proteins on an industrial scale.
www.proteomicsinternational.com
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Proteomics International
L A B O R AT O R I E S LT D