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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
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.
Proteomics International Laboratories Ltd
Proteomics International Laboratories Ltd
Contents
FROM THE CHAIR
KEY ACHIEVEMENTS
WINDOW ON THE SCIENCE - Endometriosis
TECHNOLOGY SNAPSHOT - New Therapeutics for Diabetic Kidney Disease – Gliflozins
DIRECTORS’ REPORT
REVIEW OF OPERATIONS
BOARD OF DIRECTORS AND OPERATIONAL TEAM
MATERIAL BUSINESS RISKS
REMUNERATION REPORT
AUDITOR’S INDEPENDENCE DECLARATION
FINANCIAL STATEMENTS
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Consolidated Statement of Profit or Loss and Other Comprehensive Income 40
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 pleasure to introduce Proteomics International’s annual report on behalf of the Board, reviewing
activities and achievements for the year ended 30 June 2021.
It has been an exciting 12 months for Proteomics International, with several key milestones reached in
the commercialisation of our flagship diagnostic product—the PromarkerD test for diabetic kidney
disease. Highlights for the year include the first distribution agreements for the PromarkerD
immunoassay test, the achievement of ISO 13485 certification, and the publication of validation and
clinical performance results.
We are also beginning to reap the benefits of our strategy to expand our diagnostic development
pipeline in 2020, with several biomarker research programs progressing to the next stage of the
Promarker™ pipeline. All programs are in areas of unmet need and have the potential to deliver
significant value for the Company.
However, the roll-out of a novel chronic disease diagnostic test during a global pandemic has come
with many challenges. The necessity for clinical pathology laboratories to focus testing on the SARS-
CoV-2 virus has naturally restricted testing for other diseases, presenting barriers to the immediate
rollout of the novel PromarkerD test.
I am proud of the passion and professionalism shown by the Proteomics International team amid the
COVID-19 pandemic, and their dedication in keeping the global commercialisation strategy for
PromarkerD on track and progressing the Promarker™ pipeline.
We believe there is strong, pent-up demand for screening for major diseases neglected during the
pandemic, including diabetes and its complications such as diabetic kidney disease. Diagnostics
companies will also be strongly positioned with additional testing capacity, alongside a community
more aware of the importance of early testing for disease.
We thank you for your continued investment in Proteomics International Laboratories as we look
forward to a transformative year ahead.
Yours sincerely,
Terry Sweet
Chair, Proteomics International
Key Achievements
PromarkerD
• First distribution agreements for PromarkerD
immunoassay test
Italy and Israel became the first markets for the easy-
to-use immunoassay version of the PromarkerD test
for diabetic kidney disease.
• Validation and clinical performance results
published
Key Opinion Leader engagement continued with the
publication of several studies in internationally peer-
reviewed journals and at conferences.
• ISO 13485 certification achieved
Key milestone underpins production and future global
sales of the PromarkerD test for diabetic kidney disease.
• Manufacturing scale-up
Several processes instigated to facilitate scale-up in
production of the PromarkerD immunoassay reagents
and kits.
• Reimbursement code groundwork
Company to seek US reimbursement code following
extensive engagement with expert panels and
comprehensive economic health benefit modelling.
• Intellectual Property portfolio expands
Now includes trade-secrets, plus patents and
trademarks covering 273 million (59%) of the world
diabetes population.
Diagnostics
• Promarker™ pipeline advances
The Company continues to create new intellectual
property and develop novel diagnostic tests by
applying its Promarker platform technology to areas
of unmet medical need.
• Partnership with QIMR Berghofer Institute to target
oesophageal cancer
Collaboration to develop a simple blood test to
expand the Promarker™ diagnostics pipeline.
Analytical Services
• Revenue streams remain strong
The Company’s target area of pharmacokinetic
(PK) testing for clinical trials continues to grow, and
specialist quality control testing (food products and
biosimilars) was stable despite the Covid-19 pandemic.
• Major analytical services contract in
pharmacokinetic testing
Company secures largest single analytical services
contract to date valued at $243,000.
Corporate
• Heavily-oversubscribed Placement raises $6 million
New UK and Australia-based institutions join the
Company's share register.
• CCO and CFO bolster executive team
Appointments of leading executives follow a
worldwide executive search.
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Window on the science
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Endometriosis
Endometriosis is a painful condition where tissue
similar to the lining of the uterus grows into
other parts of body where it doesn’t belong.
Most endometriosis is found in the pelvis and
affects the reproductive organs.
830,000
Women living with
endometriosis in
Australia
200 million
Women living with
endometriosis
worldwide
An area of significant unmet medical need
Endometriosis is an extremely common but frequently under-recognised chronic disease. A 2019 Australian
government report from the Australian Institute of Health and Welfare highlighted significant frustration
with the under-recognition and misdiagnosis of the condition, and long delays in diagnosis and treatment.
Diagnosis
Endometriosis has been historically under-recognised
by both the medical community and the public, and
subsequently underdiagnosed.
Many women living with endometriosis and
associated chronic pain do not receive adequate
treatment and management until they have had
the condition for many years.
7-12 years
Average delay
between onset
and diagnosis
Source: Australian Institute
of Health and Welfare
1 in 9
Australian women
will be diagnosed
with endometriosis
Source: Endometriosis Australia
Impact
Endometriosis can have a profound impact on women of
all ages, their families, partners and carers, and society as
a whole.
The condition typically causes pain, which can be severe,
and infertility. It is a highly-individual disease, and
symptoms can vary significantly from person to person.
Women with endometriosis may experience:
• period pain
• pain with sex
• pelvic pain at other times of the menstrual cycle
• back pain
• low energy
• pain passing a bowel motion
• infertility
Source: The Royal Women’s Hospital
Economic cost
Endometriosis costs Australia billions of
dollars every year through losses in
productivity and direct healthcare costs.
There is also a considerable reduction in
quality of life for people with the disease.
34,200
Endometriosis-
related hospitalisations
in Australia
Source: Australian Institute
of Health and Welfare
$9.7 billion
Cost of endometriosis
in Australia per year
Source: Endometriosis Australia
Current diagnosis
Today, the only way to diagnose
endometriosis is through a
laparoscopy, a surgical procedure
performed under general
anaesthetic.
During the operation, a thin
telescope is placed into a patient’s
navel, allowing doctors to see
inside the body and assess the
pelvic and abdominal organs.
A sample of tissue thought to
contain endometriosis is removed
and sent to a pathologist to
confirm the diagnosis.
A better way
Proteomics International is
developing a simple blood test
for endometriosis that could be
ordered by a GP. It works by
looking for protein fingerprints
in the blood, called ‘biomarkers’,
that are associated with the
disease.
The test will be based on
Proteomics International’s
proprietary Promarker™
platform—the same technology
used to develop the PromarkerD
test for diabetic kidney disease.
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Technology Snapshot
New Therapeutics for Diabetic
Kidney Disease – Gliflozins
Diabetic kidney disease (DKD) is a serious
complication arising from diabetes that affects 1
in 3 people with diabetes globally. Known as a
silent killer, 9 out of 10 patients with kidney
function are
reduced kidney
damage or
asymptomatic until it is too late. The most
effective strategy to reduce the impact of DKD is
to receive an early and accurate diagnosis,
implement suitable
allowing doctors
treatment plans.
Source: US Centers for Disease Control and Prevention
to
Diagnosis
Proteomics International has created PromarkerD, the world’s first
predictive test for DKD and the only test that can predict the onset of kidney
decline in patients with type 2 diabetes (T2D). In clinical studies published
in leading journals, PromarkerD correctly predicted up to 86% of otherwise
healthy diabetics who went on to develop DKD within four years.
Gliflozins – SGLT2 Inhibitors
The kidneys’ basic function is to filter out a
wide array of unwanted substances from the
bloodstream, and facilitate the reabsorption
of nutrients and salts via controlled
gateways. One of those controlled gateways
within the kidneys is the Sodium-Glucose
Cotransporter Protein 2 (SGLT2), responsible
for reabsorbing both glucose and sodium
back into the bloodstream. Gliflozins are a
class of drugs that inhibit this interaction,
preventing the filtered-out glucose and
sodium from being reabsorbed back into the
bloodstream. This results in reduced blood
sugar levels.
Gliflozins are a drug technology composed of a glucose-like domain and
a side chain that differs between gliflozin drugs. The glucose-like
domain allows the drug to bind to SGLT2 gateways, and the side chain
inhibits their function.
Gliflozin drugs were first approved for the treatment of diabetes in both
the EU and US in 2013. Subsequently, gliflozins were shown in clinical
trials to also be beneficial in reducing cardiovascular disease (CVD)
symptoms in patients with diabetes. Most recently, clinical trials have
shown that gliflozins can treat DKD, and two drugs have been granted
US Food and Drug Administration (FDA) and European Medicines Agency
(EMA) approval for this use, with more currently being tested.
Canagliflozin
was the first drug in 20 years
shown to slow the progression
of DKD in patients with
type 2 diabetes.
Sales of gliflozin drugs
Canagliflozin
(Invokana)
developed by
Mitsubishi Tanabe
licensed by Janssen
Dapagliflozin
(Farxiga/Forxiga)
by Astrazeneca/
Bristol-Myers Squibb
Empagliflozin
(Jardiance)
by Boehringer
Ingelheim/ Eli Lily
* FDA approval
† EMA approval
2013:
treat type 2
diabetes * †
2012:
treat type 2
diabetes †
2014:
treat type 2
diabetes *
2018:
treat
cardiovascular
disease * †
2019:
treat
DKD *
2020:
treat
DKD †
2020:
treat
cardiovascular
disease * †
2021:
treat CKD
and DKD * †
2014:
treat type 2
diabetes * †
2016:
treat
cardiovascular
disease *
2021:
treat
cardiovascular
disease †
Reported 2020 global sales in USD
In July 2021, Proteomics International announced the results of a collaborative 3-year study with Janssen that
used blood samples from over 2,000 patients. The results found that taking canagliflozin lowers the
PromarkerD risk score for DKD in patients with type 2 diabetes (see page 11).
Changing Lives
PromarkerD can predict the onset of diabetic kidney disease before clinical symptoms appear. Now the
gliflozin drugs offer a new treatment for patients with DKD. By coupling early testing of asymptomatic
diabetes patients with early therapeutic intervention DKD may become a disease that can be treated even
before it appears. Equipped with both an accurate prognostic tool, and the first DKD drugs in 20 years
emerging on the market, clinicians have more options now than ever to change the lives of those with
diabetes.
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 three simple clinical factors, to predict
the onset of the disease up to four years in advance.
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Directors’ Report
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 2021.
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 39).
The operating result for the year was:
Loss before income tax
Loss for the year
Comprising
Revenue and Other income
Expenses
Change
64%
64%
CONSOLIDATED
2021
$2,859,663
$2,859,663
2020
$1,743,770
$1,743,770
(1%)
23%
$2,988,493
$5,848,156
$3,016,274
$4,760,044
The Group's financial report for the year ended 30 June 2021 includes:
• Operating revenue from analytical services remained robust despite economic uncertainties at $1.31 million,
an 8% decrease compared to the previous year.
• Combined income from all sources declined 1% to $2.99 million. Revenue from ordinary activities
encapsulates income from analytical services, State and Federal COVID-19 stimulus packages, and grant
income including the R&D Tax Incentive.
• Operational expenditure increased to $5.8 million, and focused on the commercialisation of PromarkerD,
upgrading of laboratory instruments, and expansion of the diagnostics pipeline.
• The loss from ordinary activities increased 64% to $2.86 million, which reflects normal operational costs and
non-cash items.
• The net cash outflow from operating activities was $2.21 million, an increase of 475%.
• At 30 June 2021 the Company had cash reserves of $5.6 million, and trade and other receivables of $0.3 million.
On the back of the Company's research and development focus it anticipates an R&D Tax Incentive cash
rebate of $1.29 million, to be received in the December quarter 2021.
DIVIDENDS
No dividend was paid during the year and the Board has not recommended the payment of a dividend.
ISSUED CAPITAL
105,205,875 fully paid ordinary shares (ASX: PIQ) and 8,040,279 unlisted options were on issue as at 30 June 2021.
ANNUAL GENERAL MEETING
In accordance with ASX Listing Rules 3.13.1 and 14.3, Proteomics International advises that its 2021 annual general
meeting (AGM) is scheduled to be held on 25 November 2021. The Company encourages shareholders to attend the
AGM and receive an update on the strategy and initiatives of the Group.
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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
for diabetic kidney disease,
pioneering
PromarkerD. The Company offsets the cash burn from
test
R&D and product development through provision of
its
specialist analytical services, whilst using
proprietary Promarker™ technology platform to
create a pipeline of novel diagnostic tests.
International
is a wholly-owned
Proteomics
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 PromarkerTM,
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 129 billion by 20272.
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 69.3 billion by 20283, whilst the market size of the global
biosimilar market was valued at USD 11.8 billion in 2020, and is projected to
reach USD 35.7 billion by 20254. The global proteomics market was valued at
USD 21.1 billion in 2019, and is expected to reach USD 50.0 billion by 20275.
1. For further information see the PromarkerD web portal: www.PromarkerD.com
2. Grand View Research 2020: Biomarkers Market Size
3. Grand View Research 2021: Clinical Trials Market Size
4. Markets and Markets 2020: Biosimilars Market by Product
5. Allied Market Research 2021: Proteomics Market by Component
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PromarkerD
Global commercialisation strategy on track.
Key milestones completed in 2020-21 include the first
distribution agreements for the PromarkerD immunoassay
test, the achievement of ISO 13485 certification for the
manufacture of medical devices, and the publication of
validation and clinical performance results. Proteomics
International continues
to make advances across
accreditation and regulatory approvals, manufacture and kit
assembly, and distribution.
Problem & Solution
The Problem
• 463 millions diabetics globally
• 1-in-3 diabetic adults have
chronic kidney disease
• There is no early warning - kidney function
can fall below 15-20% with no symptoms
• Diabetic kidney disease leads to renal failure
which requires dialysis (US$72,000 p.a.)
or kidney transplant
• Total cost of diabetic kidney disease =
US$130 Bn per year in USA alone
Current standard-of-care diagnostics
• Current standard-of-care tests cannot
predict the onset of diabetic kidney disease
• Doctors can only prescribe therapeutic
treatments which are largely ineffective
for late stage disease
• Patients ultimately require dialysis
and/or a kidney transplant
Diseased Kidney
Roadblock
• PromarkerD can predict the onset of disease before
clinical symptoms appear (up to four years prior)
• Doctors can then prescribe an early
therapeutic treatment to slow or stop
the onset of disease
• Kidneys remain healthier for longer, saving
healthcare systems billions of dollars
• Improve quality of life
Healthy Kidney
Solution
Source: International Diabetes Federation (IDF) Atlas 9th Edition 2019. US Renal Data System 2020
About PromarkerD
Diabetic kidney disease (DKD) is a serious complication arising from diabetes
which if unchecked can lead to dialysis or kidney transplant. PromarkerD is a
prognostic test that can predict future kidney function decline in patients with
type 2 diabetes and no existing DKD. The patented PromarkerD test system uses a
simple blood test to detect a unique ‘fingerprint’ of the early onset of the disease.
In published clinical studies, PromarkerD correctly predicted which otherwise
healthy diabetics went on to develop diabetic kidney disease within four years.
Further information is available through the PromarkerD web portal:
www.PromarkerD.com
The science behind PromarkerD
The PromarkerD predictive test for DKD -
International validation
PromarkerD scores were measured at baseline
('Year 0') in 3,568 patients with type 2 diabetes with
pre-existing high risk of cardiovascular disease from
the completed four-year phase 3 CANagliflozin
cardioVascular Assessment Study (CANVAS).
The publication showed that PromarkerD accurately
predicted which patients in the trial would develop
clinically significant kidney disease during the
four year period.
Patients predicted by PromarkerD to be at high-risk
of DKD were 13.5 times more likely than the low-risk
group to develop the disease, with the results
showing high statistical significance (p = 1.3x10-104).
Source: Results published in Journal of Clinical Medicine "PromarkerD Predicts
Renal Function Decline in Type 2 Diabetes in the Canagliflozin Cardiovascular
Assessment Study (CANVAS)"
Canagliflozin significantly lowered PromarkerD
risk scores compared to placebo over 3 years.
The greatest effect of canagliflozin was in those
classified by PromarkerD as at high-risk of a
subsequent decline in renal function.
PromarkerD can identify patients who are
asymptomatic for DKD, and canagliflozin
improves the associated PromarkerD
renal risk profiles.
PromarkerD and Canagliflozin - DKD
diagnosis and management
Subsequent to the year end, Proteomics
International announced the results of the second
stage of the collaboration between Proteomics
International and Janssen. This study examined the
association between canagliflozin, an approved
diabetes therapy with additional renal benefits
(See Technology Snapshot, page 6), and the change
in PromarkerD score (Δ score) in CANVAS.
The research retrospectively measured PromarkerD
risk scores for developing DKD in blood samples
from 2,008 patients taken at the start of the trial and
again three years later. All patients had diabetes but
no existing DKD, and were randomly allocated to
take either canagliflozin or a placebo.
Aim: Do ‘at-risk’ patients continue to decline, or
stabilize, or recover?
Results: The ‘At-risk’ patients on placebo continued
to decline, but those on canagliflozin treatment
stabilized or recovered:
• Across all participants:
Patients on drug had decreased mean
PromarkerD scores over the study
(Δ score: -1.0%; p=0.038),
Patients on placebo had increased mean
PromarkerD scores over the study
(Δ score: 3.9%; p<0.001)
• By PromarkerD risk category, patients with
high-risk scores at baseline:
Patients treated with canagliflozin had
significantly lower scores at Year 3
(Δ score: -5.6%; p<0.001)
Patients on placebo remained high
(Δ score: 3.2%; p=0.17) (Time*TRT p=0.002)
Source: Poster presented at Australasian Diabetes Congress "Canagliflozin
attenuates PromarkerD diabetic kidney disease risk prediction scores"
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PromarkerD - Licensing and distribution
Discussions progressing with multiple prospective partners.
First distribution agreements for PromarkerD
immunoassay test
Italy and Israel became the first markets for the easy-to-use
immunoassay version of the PromarkerD test for diabetic
kidney disease.
In October, Proteomics International signed a distribution
licensing agreement with innovative medical distributor
Medical Horizons SRL to bring PromarkerD (IA) to patients in
Italy. The country is home to 3.7 million people with diabetes,
or one in 12 adults. Medical Horizons have completed
registration of PromarkerD with the Italian Ministry of Health
and are now engaged with a number of Italian Key Opinion
Leaders for early adoption of the test by major hospitals. The
COVID-19 pandemic has slowed the roll-out of the test in Italy.
In November, Proteomics International appointed Zotal Ltd
as the exclusive distributor for PromarkerD in Israel, a country
recognised as a global leader in the life-science industry and
renowned for its early adoption of cutting-edge medical
technologies. One in eight adults in Israel has diabetes, and
the disease is the country’s fifth leading cause of death. Zotal
will complete product registration and reimbursement
applications for PromarkerD with the Israeli Department of
Medical Devices, Ministry of Health and engage with Israeli
Key Opinion Leaders for the promotion and early adoption
of the test by major hospitals.
Both distribution agreements are for two years, exclusive to
their respective countries and exclusive to PromarkerD (IA).
Proteomics International will receive payment for each kit
sold. As for any novel test, market penetration cannot be
predicted accurately, hence for the new licences it is not
possible to quantify the financial impact on Proteomics
International in any given timeframe.
Continuing licence/partnering discussions focused on
immunoassay technology
Proteomics International is continuing discussions with
diagnostic and pharmaceutical companies in multiple
countries to bring the immunoassay kit version of the
PromarkerD test to patients. This simple technology platform
is cost-effective and standard to clinical diagnostics
laboratories around the world. The format allows hundreds
of blood samples to be analysed quickly as part of a panel of
routine blood tests. Proteomics International is also currently
renegotiating deals with the Company’s existing PromarkerD
partners, for access to the immunoassay version of the test.
PromarkerD - Simple Integration & Utilisation
Blood Sample
drawn
Biomarkers
Analysed
Results analysed by
PromarkerD Hub software
Results and intervention
plan delivered
Sample is drawn at clinic or
pathology laboratory
Laboratory uses a standard
technology platform
Advanced rapid immunoassay
measures three plasma proteins
combined with three simple
clinical factors (age,
cholesterol, eGFR)
Cloud based algorithm, the
“PromarkerD Hub” calculates the
patient’s kidney disease risk score
Clinician delivers results to patient
Depending on results, intervention
may include:
Employs a traffic light system for
optimal performance, classifies
patients as:
■ low risk
■ medium risk
■ high risk
• change of lifestyle; and/or
• therapeutic drugs
Patients are retested:
■ Annually (low risk)
■ 3-6 monthly (medium risk)
■ 3 monthly (high risk)
PromarkerD in the Clinic
TEST RESULTS
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 - Manufacturing
PromarkerD - Clinical
Preparing for the large-scale manufacture of PromarkerD kits.
ISO 13485 certification achieved
In April, Proteomics International received ISO 13485
certification, the most widely-used international standard
for quality management systems in the manufacture of
medical devices. The standard provides the foundation for
regulatory requirements in the European Union, Australia,
Japan, Canada and the United States, and is a key milestone
underpinning production and future global sales of the
PromarkerD test for diabetic kidney disease.
ISO 13485 certification is awarded to companies that can
demonstrate an ability to produce safe, effective products
that consistently meet the expectations of customers and
regulators. The ISO 13845 certification will also apply to
Proteomics International's pipeline of other diagnostics
currently under development.
Preparation for manufacturing scale-up
The Company instigated several processes during the
financial year that will facilitate the scale-up in production
of the PromarkerD immunoassay reagents and kits. This
includes production of specialist synthetic protein
standards and stabilised recombinant versions of the
antibodies (used to detect the target protein biomarkers).
Subsequent to the year end, Proteomics International has
engaged global life science company Abcam as the reagent
producer, and ISO 13485 accredited specialist immunoassay
manufacturer Biotem for the kit production. Coupled with
the Company’s own certification, these partnerships
complete the Northern Hemisphere manufacturing
capability for PromarkerD, and will allow the immunoassay
kit to be manufactured
in high volumes and to
international regulatory standards.
PromarkerD - Regulatory and reimbursement
Actively engage with regulatory and reimbursement bodies.
US FDA regulatory submission filed
In April, Proteomics International filed a 513(g) submission
to the United States Food and Drug Administration (FDA)
for the PromarkerD test for diabetic kidney disease. The
International to
application will allow Proteomics
determine the best regulatory path for PromarkerD - either
the De Novo Classification or 510(k) route. The FDA
normally assesses applications within 60 days, however it
has advised all responses are delayed due to the COVID-19
pandemic. The Company is preparing to file a full
application once the required pathway for PromarkerD is
determined. The route to market in the US remains the LDT
(laboratory developed test) path through CLIA (Clinical
Laboratory Improvement Amendments) certified labs,
which allows sales to commence prior to FDA approval.
Reimbursement code groundwork
Proteomics International is set to seek a reimbursement
code for the PromarkerD test for diabetic kidney disease
following extensive engagement with expert panels
representing physicians,
laboratories and payors,
conducted alongside comprehensive economic health
benefit modelling.
Reimbursement codes and payer coverage in the US are
initiated through the American Medical Association (AMA)
and its Current Procedural Terminology (CPT) Editorial
Panel. This code, known as a CPT Proprietary Laboratory
Analyses (PLA) code, uniquely identifies a test for the
laboratory and the payors.
A payer budget impact study was conducted by US based
consultant Boston Healthcare Associates to demonstrate
the potential economic health benefit of the PromarkerD
test compared to the current standard of care. The study
found that instigating PromarkerD testing produced
savings primarily from slowing the progression of DKD, and
delaying or preventing dialysis and kidney transplants,
against costs from increased testing and the use of
preventative medications. Boston Healthcare Associates
and Proteomics International presented the modelling at
the world’s leading conference for health economics,
Virtual ISPOR 2021 in May, and at the world's largest
diabetes conference, the American Diabetes Association's
81st Scientific Sessions, in June.
All companies seeking reimbursement for any new test are
required to provide a dossier demonstrating the potential
economic health benefit of a test. The second element to
achieving reimbursement is demonstrating the clinical
utility of PromarkerD, namely the impact of PromarkerD on
patient treatment decisions by primary care physicians and
specialist endocrinologists. A clinical utility study on
PromarkerD has also been conducted by Boston
Healthcare Associates and is currently subject to peer
review prior to publication.
The publication of PromarkerD clinical results in major scientific journals
remains a key component of the Company's strategy to engage with
Key Opinion Leaders (KOLs).
International validation study
The findings of a global multi-centre clinical study
confirming the effectiveness of PromarkerD as a predictive
test for diabetic kidney disease were published in the
Journal of Clinical Medicine. The paper was the first external
validation study of PromarkerD, and was jointly authored
by Proteomics International, The University of Western
Australia Medical School and Janssen Research and
Development.
the
Clinical performance results
Two studies demonstrating
technical
performance of the PromarkerD test were published in the
journals Clinical Proteomics and Proteomes. The results form
an essential basis for further regulatory approvals of the
PromarkerD test system and its adoption by pathology
laboratories worldwide.
robust
Scientific posters and publications describing PromarkerD in 20/21FY
Economic Health Benefit Study
Burchenal W, et al. Demonstrating the Economic Health Benefit of using the PromarkerD In Vitro Diagnostic Test in the
Prediction of Diabetic Kidney Disease. Poster presented at the American Diabetes Association’s 81st Scientific Sessions, 2021.
Payer Budget Impact Study
Burchenal W, et al. Determination of Payer Budget Impact from Using an Innovative In Vitro Diagnostic in the Management
of Diabetic Kidney Disease. Poster presented at Virtual ISPOR, 2021.
Global Multi-Centre Prognostic Validation Study
Peters KE, et al. PromarkerD Predicts Renal Function Decline in Type 2 Diabetes in the Canagliflozin Cardiovascular
Assessment Study (CANVAS) J Clin Med. 2020.
Multi-Site Assay Validation Study
Bringans SD, et al. A robust multiplex immunoaffinity mass spectrometry assay (PromarkerD) for clinical prediction of
diabetic kidney disease. Clin Proteomics. 2020.
Cross-Platform Assay Validation Study
Bringans SD, et al. The New and the Old: Platform Cross-Validation of Immunoaffinity Mass Spectrometry versus ELISA for
PromarkerD, a Predictive Test for Diabetic Kidney Disease. Proteomes. 2020
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PromarkerD - Market
PromarkerD - Intellectual Property
Intellectual Property portfolio expands
In July 2020, new patents were secured for the potentially
substantial markets of Brazil which has 16.8 million adults
with diabetes, and Canada which has 2.8 million.
Proteomics
International has established a strong
intellectual property portfolio for PromarkerD, in the form
of patents, trademarks and trade-secrets. This IP provides
the foundation for on-going licensing discussions. Together
the Company's granted patents and trademarks cover 273
million (59%) of the addressable diabetes patient
population globally.
Key Opinion Leader engagement
In parallel to achieving manufacturing and regulatory
milestones for PromarkerD, Proteomics International
continues to engage with Key Opinion Leaders (KOLs)
through conference presentations, the publication of
clinical results in leading scientific journals and direct
consultation. KOLs and peer-review publications are crucial
in driving physician, payer and patient-advocate
engagement, which in turn will drive adoption of
PromarkerD. As part of this strategy, Proteomics
International presented the latest results on PromarkerD
at several global conferences during the financial year.
Proteomics International owns three families of patents for PromarkerD in key markets with others pending
FAMILY ONE patents relate to use of PromarkerD as a diagnostic test for diabetic kidney disease
Country/Region Application/ Patent No. Patent Title Status
"Biomarkers associated with pre-diabetes, diabetes and diabetes related conditions"
• Derived from International Patent Application PCT/AU2011/001212
• All patents valid until September 2031
Australia 2011305050 Granted
Brazil BR 11 2013 006764 0 Granted
Canada 2811654 Granted
China ZL201180053583.9 Granted
Europe1 3151012 Biomarkers Associated with Diabetic Nephropathy Granted
Europe 18155797.6 Pending
Hong Kong 18115912.3 Pending
India 3012/DELNP/2013 Pending
Indonesia W00 2013 01585 Granted
Japan 2013-528474 Granted
Russia 2596486 Granted
Singapore 188527 Granted
US 9146243 Method of assessing diabetic nephropathy using CD5 antigen-like Granted
1Validated in France, Germany, Italy, Turkey, Spain, United Kingdom
FAMILY TWO patents relate to use of PromarkerD as a diagnostic test for any form of kidney disease
Country/Region Patent No. Status
Biomarkers associated with kidney disease
• Patent valid until September 2031
Australia 2015202230 Granted
Method of assessing a subject for abnormal kidney function
• Patent valid until September 2031
US 9733259 Granted
Method for the diagnosis of kidney damage in the early stages
• Patent valid until 23 July 2022
Europe2 EP1410039 Granted/ Licensed
Method of diagnosing early stage renal impairment
• Patent valid until 30 September 2027
US2 US7842463 Granted/ Licensed
Method for predicting the progression of chronic kidney disease by measuring apolipoprotein a-iv
• Patent valid until 8 September 2026
Europe2 EP1941274 Granted/ Licensed
2Licensed exclusively to Proteomics International from the University of Innsbruck
FAMILY THREE patents relate to a method for identifying drugs for abnormal kidney function using one of the PromarkerD biomarkers
("CD5 antigen like") as a potential drug target
Country Application/ Patent No. Status
"Method for Identifying an Agent for Treating Abnormal Kidney Function"
• Patent valid until September 2031
US 10191067B2 Granted
Trademark - PromarkerDTM
Country/ Region Status
• Class 44 - Medical diagnostic services (No 1776917)
• Class 5 - Diagnostic apparatus for medical purposes including diagnostic kits (No 1806616)
Australia, European Union, Israel, Japan, South Korea, Mexico, Dominican Republic, New Zealand, Russia, Singapore, US Granted
China Pending
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Diagnostics
Biomarker research programs continue to progress.
Promarker™ pipeline advances
Proteomics International is beginning to reap the benefits
of the Company’s strategy to expand its diagnostic
development pipeline in 2020. Proteomics International is
engaged with a number of regional and international
partners who have been affected by the COVID-19
pandemic, which has slowed progress in some programs.
Nonetheless, the Company does not consider any delays
to be material, with several biomarker research programs
progressing to the next stage of the Promarker™ pipeline,
including four at the ‘clinical validation’ stage. All programs
are in areas of unmet need and have the potential to
deliver significant value for the Company.
The Promarker™ 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).
Grey lines indicate project progress as reported in The Company’s 2020 Annual Report.
Project progress most recently reported in 2021 March Quarterly Activities Report.
Diagnostics
Endometriosis - Intellectual Property
Country/Region Application/ Patent No. Status
"Endometriosis biomarkers"
International PCT/AU2021/050227 Pending
Oxidative Stress ("Two-Tag") - Intellectual Property
Proteomics International owns two families of patents for Two-Tag in key markets with others pending
FAMILY ONE patents related to "Methods for determining the redox status of proteins"
Country/Region Patent No. Status
• Derived from International Patent Application PCT/AU2006/001757
• All patents valid until November 2026
Australia 2006317506 Granted
US 8043824 Granted
FAMILY TWO patents related to "Methods for measuring relative oxidation levels of a protein"
Country/Region Application Status
Australia 2019240758 Pending
Canada 3094249 Pending
China 201980022119.X Pending
Europe 19776359.2 Pending
India 202017044154A Pending
Indonesia P00202007798 Pending
Japan 2020-552842 Pending
Singapore 11202008979Q Pending
US 17/041,551 Pending
Endometriosis
Status update: Agreements to access samples for Clinical
Validation study finalised; Clinical Validation study pending.
Proteomics International has 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 (See Window on the Science, page 4).
Given the large unmet medical need and the deficiencies
in existing diagnostic tools, Proteomics International
believes there will be significant commercial interest in this
program post successful clinical study validation.
Over the past year Proteomics International has been testing
the stability of the discovered biomarker panel as part of the
Proof of Concept. This ensures the quality and analytical
reproducibility of the biomarker panel before moving into
the current Clinical Study phase of the project.
Subsequent to the year end, Proteomics International
signed a research collaboration agreement with the
University of Melbourne and the Royal Women’s Hospital
(the Women’s), enabling access to the Women's world-
leading endometriosis database containing anonymous
biological samples and survey
information. The
collaboration will seek to validate the panel of biomarkers
discovered by Proteomics International, and also to identify
new biomarkers for the disease.
Giardia (causing gastroenteritis)
Status update: Results from Validation study under analysis.
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.
Proteomics International has identified strain specific
Giardia targets and developed a prototype immunoassay,
which is pending validation using field samples. This aspect
was delayed by the COVID-19 pandemic and analysis of the
data from the field samples remains ongoing.
Asthma & COPD
Status update: Results from Proof-of-Concept study under
analysis.
Proteomics International is working 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.
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Diagnostics
Plant dieback
Status update: Results from Discovery study under analysis.
Proteomics International has an ongoing collaboration
with the Centre for Crop and Disease Management (Curtin
University) to target the plant pathogen Phytophthora
cinnamomi, which is responsible for plant dieback that
affects a wide variety of native plant species and premium
crops such as avocados and macadamias. 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 may lead to a field test for the easier
detection of infected soil, and has the potential to identify
weaknesses in the pathogen that could be targeted to help
eradicate this disease.
Diabetic retinopathy
Status update: Results from Discovery study under analysis.
Following the success of its diabetic kidney disease project,
Proteomics International extended its collaboration
agreement with The University of Western Australia to seek
early markers for diabetic retinopathy, the major cause of
blindness in the US. This collaboration is applying the
Promarker™ platform to look for prognostic markers in the
blood that can identify patients at risk of retinopathy,
especially sight-threatening retinopathy. The program is
again utilising the Fremantle Diabetes Study which
provided the rich sample repository that
led to
PromarkerD.
in a
Oxidative stress (2-tag)
Status update: Validation studies pending;
Commercialisation discussions underway.
long-term
Proteomics International has been
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. Proteomics International holds a number of
patents covering the ‘2-tag” method (See page 19) and is
currently in commercial negotiations to unlock value from
this innovative technology.
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Diagnostics
Partnership with QIMR Berghofer Institute to target oesophageal cancer
In October, Proteomics International joined forces with QIMR Berghofer Medical Research Institute (QIMR
Berghofer) to improve detection of oesophageal adenocarcinoma, the most common form of oesophageal cancer
in Australia. The collaboration is part of Proteomics International’s strategy to continually expand its diagnostics
portfolio to target commercial opportunities in areas of significant unmet need.
Oesophageal cancer
Status update: Technology transfer ongoing;
Clinical Validation pending.
Proteomics International has joined forces with QIMR
Berghofer Medical Research Institute to improve detection
of oesophageal adenocarcinoma, the most common form
of oesophageal cancer
in Australia. Proteomics
International is employing its Promarker™ platform to
analytically and then clinically validate a panel of
biomarkers - protein ‘fingerprints’ in the blood - that QIMR
Berghofer researchers found are associated with early
stages of the cancer. The aim is to develop a simple blood
test for oesophageal adenocarcinoma.
Retinopathy - ARC Centre for Personalised
Therapeutics Technologies
Status update: Discovery study ongoing.
Proteomics International is collaborating with the Lions
Eye Institute and The University of Western Australia as part
of the Australian Research Council Centre for Personalised
Therapeutics Technologies, a $3.1 million Federally funded
Industrial Transformation Training Centre (ITTC). Proteomics
International is working alongside leading university-based
researchers to apply the Promarker™ technology to seek a
Complementary Diagnostic test to assess treatments for
eye disease.
COVID-19
Status update: Development study completed,
project suspended.
Last year, Proteomics International was awarded two grants
under the Western Australian COVID-19 Research Grants
Program to support research into COVID-19 biomarkers and
diagnostics. The development studies were completed,
however, the research programs have been suspended in
light of the extensive resources directed at COVID-19
worldwide.
Dr Richard Lipscombe on 9 News explaining the oesophageal cancer partnership.
www.proteomics.com.au/oesophageal-cancer-9-news/
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Analytical Services
Revenue from analytical services remained robust with no
negative impact observed due to the COVID-19 pandemic.
This financial year, strong revenue growth was seen in the
Company’s target area of pharmacokinetic (PK) testing,
whilst specialist analytical work (e.g. food product quality
control), consulting services, and biosimilars testing
remained stable.
Major analytical services contract in
pharmacokinetic testing
Proteomics International secured a major pharmacokinetic
testing contract with Australia’s largest clinical trial contract
research organisation, Avance Clinical. The contract
engages Proteomics International to perform advanced
pharmacokinetic testing of a novel drug for lysosomal
storage disorder. It is the Company’s largest single
analytical services contract to date, with a value of $243,000.
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).
In April 2021, Proteomics International received ISO 13485 certification for the design
and development of PromarkerD (Certification number: MD734669). Proteomics
International now holds multiple levels of internationally recognised accreditation:
•
•
•
ISO 17025: 2015 – Chemical Testing
ISO 17025: 2015 – R&D with Good Laboratory Practice (GLP) overlay
ISO 13485: 2016 Medical devices — Quality management systems — Requirements for regulatory purposes
Accreditation recognises Proteomics International's ability to consistently achieve technically valid,
traceable and reproducible results. In April 2021, Proteomics International added ISO 13485 certification to
its list of accreditations. The significance of this milestone shows the Company’s strong commitment and
vision to be a major player in innovative in-vitro diagnostic products with strong focus on commercialisation
and quality of these products. Accreditation means that clients and regulatory authorities can have
confidence in company products and helps to identify the Company as a reliable service provider.
Research & Development Tax Incentive Insights Podcast
Proteomics International has been featured
on R&DTI Insights, a podcast from the
Australian Government dedicated to
presenting news and information about the
Research and Development Tax Incentive
program, and what it means for Australian
businesses. Proteomics International
continues to use the R&D Tax Incentive to
support investment in cutting-edge research.
www.proteomics.com.au/rdti-podcast/
Company Operations
CORPORATE ACTIVITY
Heavily-oversubscribed Placement raises $6 million
In October, a successful placement brought new UK and
Australia-based institutions onto the Company's share
register. The heavily-oversubscribed Placement raised $6
to
million
overwhelming
from the
Placement are supporting an expansion of Proteomics
International’s senior management team, alongside the
implementation of strategies to accelerate the delivery of
the PromarkerD test into major global markets and to
expand the Promarker™ diagnostic pipeline.
(before costs) and closed early due
investor response. Funds
CCO and CFO appointed to bolster executive team
The executive team was expanded with the appointments
of Vik Malik as Chief Commercialisation Officer (CCO) and
Jacqueline Gray as new Chief Financial Officer (CFO),
following a worldwide executive search. Mr Malik, a
medical technologies commercialisation veteran, is leading
the commercial roll-out of the Company's innovative
diagnostic products centred on the PromarkerD predictive
test for diabetic kidney disease. Ms Gray, a well-
credentialed finance professional with experience across
global brands, including in the technology, healthcare and
media sectors, has
for Proteomics
International's finance, accounting and financial strategy
development.
responsibility
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 Promarker™ 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.
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.
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 in a Public Private Partnership
with BPA and The University of Western Australia.
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 Promarker™ 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
underway (see 'Diagnostics - Retinopathy').
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 innovations. 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, to high
achieving WA students who wish to take a gap year to gain
experience in the Biotechnology & Life Science Industry
before undertaking a science degree in the Eastern States.
Proteomics International has one scholar in residence and
is completing the third year of their
the second
undergraduate degree. The program is on-going and
Proteomics International looks forward to supporting the
2021 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.
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Board of Directors and Operational Team
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 Promarker™ 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
in the
Company’s target areas 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
Proteomics
governance
statement is available on the Company’s website, in a
section titled ‘Corporate Governance’.
International’s
corporate
EVENTS SINCE THE END OF THE FINANCIAL YEAR
On 16 July 2021, Proteomics International announced that
its collaborative study with
Janssen Research &
Development had found a significant reduction in the
PromarkerD risk scores of patients with type 2 diabetes
taking canagliflozin, an SGLT2-inhibitor diabetes drug.
On 22 July 2021, the Proteomics International announced
global life science company Abcam plc had been engaged
to produce specialist reagents for the immunoassay
version of the PromarkerD test for diabetic kidney disease.
On 4 August 2021, Proteomics International announced a
research collaboration agreement with the University of
Melbourne and the Royal Women’s Hospital to develop a
simple blood test for endometriosis.
On 12 August 2021, Proteomics International announced it
had contracted European immunoassay specialist Biotem
to manufacture PromarkerD test kits.
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.
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
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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, multi0lingual 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, FCG, FGIA, 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 2021, 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
11
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.
Chief Commercialisation Officer
Vik Malik
Vik has more than 20 years’ experience in the life sciences and healthcare industries as a commercialisation expert
and business strategy advisor for several multinational, growth-stage and startup medical device and diagnostics
companies. He has been involved in the launch of numerous disruptive medical technologies, cutting-edge
biotherapies, innovative healthcare IT solutions and customised business process outsourcing services to penetrate
new and emerging markets.
Most recently, Vik served as Chief Executive Officer and board director for surgical software startup ClaraSim
Systems (USA), and has previously held senior leadership positions with IQVIA (IMS Health + Quintiles), BioFuse
Medical, Deloitte Consulting – Healthcare & Life Sciences, and Ascension Orthopedics, as well as sales, marketing
and business development roles at TissueLink Surgical, Serono Laboratories and Wyeth Pharmaceuticals.
Chief Financial Officer
Jacqueline Gray
Jacqueline is a chartered accountant and has more than 20 years’ executive experience in both Perth & London,
driving the implementation of strategy, meaningful business reporting and a sound governance framework. She
has served as the Chief Financial Officer for a range of ASX-listed and privately-owned businesses, managing
revenues in excess of $100 million.
Jacqueline joined Proteomics International from digital marketing and ecommerce agency RooLife Group, having
previously held senior leadership positions at Velpic, City Farmers, Morrison, Sungrid and the West Australian
Community Foundation. She has also worked for global companies including the Economist Group, BBC
Worldwide, HealthCare of Australia and Arthur Andersen.
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.
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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
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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
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.
currently has
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Remuneration Report
p
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:
• Mr Terry Sweet
Non-Executive Chairman (independent)
• Dr Richard Lipscombe
Managing Director
• Mr Ian Roger Moore
Non-Executive Director (independent)
• 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 in the context of
prevailing market conditions.
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:
•
•
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:
• primary benefits - monthly director's fees; and
• 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 2021:
Fixed
$
150,925
"At Risk"
$
-
Total
$
150,925
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REMUNERATION REPORT (continued)
REMUNERATION REPORT (continued)
Executive Director
The Company's Executive Director remuneration package contains the following key element:
• 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
$
297,976
"At Risk"
$
Total
$
-
297,976
The shareholders approved the Director Fee Plan at the 2019 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 2020 Annual General Meeting, more than 75% of votes cast were in favour of adoption of the Company’s
remuneration report for the 2020 financial year. The Company did not receive any comments at the Annual General Meeting
on its remuneration report.
B. Remuneration Governance
The Board is primarily responsible for making decisions and recommendations on:
• the over-arching executive remuneration framework;
•
the operation of the incentive plans which apply to the executive director and non-executives including the
performance hurdles;
• the remuneration levels of executives; and
• Non-Executive Director fees.
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
$
$
$
$
$
60,000
40,000
40,000
-
-
-
-
250,000
140,000
250,000
5,700
1,425
3,800
23,750
34,675
-
-
-
24,226
24,226
$
$
$
$
$
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
-
-
-
-
-
-
-
-
-
-
2021
Non-Executive Directors
Terry Sweet
Ian Roger Moore
Paul House
Executive Director
Richard Lipscombe
TOTAL
2020
Non-Executive Directors
Terry Sweet
Ian Roger Moore
Paul House (i)
Executive Director
Richard Lipscombe
TOTAL
(i)
Fees include settlement of liability with shares in lieu of cash as per Director Fee Plan.
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Percentage
Remuneration
Consisting of
Options
Performance
Related
%
%
Total
$
65,700
41,425
43,800
297,976
448,901
0%
0%
0%
0%
0%
$
%
%
59,130
39,420
36,855
299,231
434,636
0%
0%
0%
-
0%
0%
0%
0%
0%
0%
0%
0%
0%
-
0%
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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
Term of the agreement
Base remuneration
Superannuation
Bonus payable
Termination of agreement
Terms
No fixed term - subject to periodic re-election at the AGM
$60,000
Statutory rate
N/A
None specified
Mr Ian Roger Moore (Non-Executive Director)
Particulars
Term of the agreement
Base remuneration
Superannuation
Bonus payable
Termination of agreement
Terms
No fixed term - subject to periodic re-election at the AGM
$40,000
Statutory rate
N/A
None specified
Mr Paul House (Non-Executive Director)
Particulars
Term of the agreement
Base remuneration
Superannuation
Bonus payable
Termination of agreement
Terms
No fixed term - subject to periodic re-election at the AGM
$40,000
Statutory rate
N/A
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
Term of the agreement
Base remuneration
Superannuation
Bonus payable
Leave entitlements
Termination of agreement
Terms
No fixed term
$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)
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 2021 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
2021
$
2,988,493
( 2,165,516)
( 2,853,326)
( 2,859,663)
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)
2017
$
2018
$
2019
$
2020
$
2021
$
0.20 0.20 0.20
0.16 0.20 0.35
0.20 0.20
0.42 0.93
( 0.02)
-
( 0.02)
-
( 0.03)
-
( 0.02)
-
( 0.03)
Other Long Term Benefits
No other long term benefits are payable.
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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:
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
19,048,705
717,000
718,864
-
-
-
-
-
2,348,000
-
19,048,705
-
717,000
-
718,864
Director
2021
Terry Sweet
Richard Lipscombe
Ian Roger Moore
Paul House
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
2021
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.
(ii) Consultancy services
There were no consultancy services provided by key management personnel during the year ended 30 June 2021. Ian Roger
Moore provided business development services in the amount of $2,065 during the year ended 30 June 2020 on terms no more
favourable than those reasonably expected under arm's length dealings with unrelated persons.
THIS IS THE END OF THE AUDITED REMUNERATION REPORT
Unissued ordinary shares of the Company under option as at 30 June 2021 are as follows:
Date options granted
21/11/2018
21/11/2018
27/03/2020
11/05/2020
18/08/2020
28/01/2021
28/01/2021
30/04/2021
Expiry date
22/11/2021
22/11/2022
27/03/2023
1/05/2023
18/08/2023
2/11/2022
2/11/2022
30/04/2023
Exercise price
Number under option
$0.50
$0.67
$0.50
$0.50
$0.50
$0.75
$0.75
$1.75
400,000
400,000
2,890,279
400,000
1,250,000
1,100,000
1,100,000
500,000
8,040,279
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 ended 30
June 2021 was 300,000 (2020: 750,000).
INSURANCE OF OFFICERS
During the year ended 30 June 2021, 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 willful 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 year ended 30 June 2021 were in respect to consulting
and amounted to $3,100 (2020: $5,120).
AUDITOR
BDO Audit (WA) Pty Ltd continues in office in accordance with section 327 of the Corporations Act 2001 .
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 27th August 2021
Dated 30 August 2021
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Auditor’s Independence Declaration
DECLARATION OF INDEPENDENCE BY NEIL SMITH TO THE DIRECTORS OF PROTEOMICS
INTERNATIONAL LABORATORIES LIMITED
As lead auditor of Proteomics International Laboratories Limited for the year ended 30 June 2021, I
declare that, to the best of my knowledge and belief, there have been:
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Proteomics International Laboratories Limited and the entities it
controlled during the period.
Neil Smith
Director
BDO Audit (WA) Pty Ltd
Perth, 30 August 2021
Financial
Statements
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275,
an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and
form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.
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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 2021
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2021
Revenue from continuing operations:
- Services
- Research grants and other income
Other income
- Interest income
- Research and development tax incentive
- Export market development grant
- 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
Other expenses
Total Expenditure
Notes
5
2(a)
2(c)
1(h), 14
2(b)
Consolidated
Entity
2021
$
Consolidated
Entity
2020
$
1,310,824
140,216
14,386
1,290,899
-
232,168
2,988,493
2,726,728
147,500
372,518
112,476
102
6,235
601,433
991,051
57,021
99,832
23,402
709,858
5,848,156
1,423,070
166,961
20,702
1,138,815
-
266,726
3,016,274
2,127,031
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
(Loss) before income tax
( 2,859,663)
( 1,743,770)
Income tax (expense) / benefit
3(a)
- -
(Loss) after income tax from continuing operations
( 2,859,663)
( 1,743,770)
Total comprehensive (loss) for the year attributable to equity
holders of Proteomics International Laboratories Ltd
( 2,859,663)
( 1,743,770)
Basic (loss) per share for the year attributable to the members of
Proteomics International Laboratories Ltd
Diluted (loss) per share
25
( 0.03)
N/A
( 0.02)
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
Deferred income
Lease liabilities
Provisions
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Deferred income
Lease liabilities
Provisions
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated (losses)
TOTAL EQUITY
Consolidated
Entity
2021
$
Consolidated
Entity
2020
$
Notes
4
6
7
9
7
8
10
12
11
12
11
13
15
16
5,604,834
301,048
1,431,928
7,337,810
1,196,876
-
63,913
1,012
1,261,801
8,599,611
263,687
270,552
69,046
175,752
779,037
99,403
-
111,749
211,152
990,189
2,365,022
364,587
1,387,997
4,117,606
1,308,277
-
127,825
1,012
1,437,114
5,554,720
259,936
187,752
63,799
110,984
622,471
334,803
69,044
90,501
494,348
1,116,819
7,609,422
4,437,901
19,095,227
1,171,305
( 12,657,110)
7,609,422
13,391,543
1,054,100
( 10,007,742)
4,437,901
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
Proteomics International Laboratories Ltd
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2021
CONSOLIDATED STATEMENT OF CASH FLOW
FOR THE YEAR ENDED 30 JUNE 2021
CONSOLIDATED ENTITY 30 JUNE 2021
Notes
Issued Capital
Ordinary
$
Reserves
$
(Accumulated
Losses)
$
Total Equity
$
Balance at 1 July 2020
13,391,543
1,054,100
( 10,007,742)
4,437,901
(Loss) for the year
Other comprehensive income for the year
Total comprehensive (loss) for the year
-
-
-
-
( 2,859,663)
-
( 2,859,663)
-
-
-
( 2,859,663)
( 2,859,663)
Transactions with Equity Holders in
their capacity as Equity Holders
Equity issued net of share issue costs
Reclassification of option reserve
Option entitlement issue
Share based payments expense
13
15(b)
14
1(h), 14
5,703,684
-
-
-
-
-
5,703,684
( 210,295) 210,295
180,000
147,500
117,205
-
-
210,295
5,703,684
-
180,000
147,500
6,031,184
Balance as at 30 June 2021
19,095,227
1,171,305
( 12,657,110)
7,609,422
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 issues net of share issue costs
Conversion of options
Share based payments expense
13
14
2,631,198
223,078
1(h), 14 -
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
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying 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
Cash flows from investing activities
Proceeds from sale of plant and equipment
Payment for property, plant and equipment
Right of use asset acquired
Net cash (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 from financing activities
Cash and cash equivalents at 1 July
Net increase in cash and cash equivalents
Cash and cash equivalents at 30 June
Consolidated
Entity
2021
$
Consolidated
Entity
2020
$
Notes
1,142,197
232,168
( 4,730,301)
( 6,337)
14,385
-
1,138,815
( 2,209,073)
14,165
( 205,166)
-
( 191,001)
5,553,684
150,000
-
( 63,798)
-
5,639,886
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
2,365,022
1,511,430
3,239,812
5,604,834
853,592
2,365,022
4
4
The above Consolidated Statement of Cash Flow should be read in conjunction with the accompanying notes.
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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 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(c)
Estimates and judgements
The financial report Proteomics International Laboratories Ltd and its subsidiaries (the Company) for the financial year ended 30 June 2021
was authorised for issue in accordance with a resolution of the Directors on the 27th day of August 2021.
30th
The Company is a public company limited by shares, incorporated and domiciled in Australia, and whose shares are traded on the Australian
Securities Exchange.
The nature of the operations and principal activities of the Company are described in the Director’s report above.
(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
The financial statements have been prepared on a going concern basis, which contemplates continuity of normal business activities and the
realisation of assets and settlement of liabilities in the ordinary course of business.
(b)
Segment Information
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 unfavorably 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 incurs 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.
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.
(d)
Principles of consolidation
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 (the Board).
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 segment’s 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 subsidiaries,
which represent the operational performance of the Company’s revenues and the research and development activities as well as the finance,
treasury, compliance and funding elements.
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.
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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 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
(e)
Revenue recognition and other income
(h)
Share based payments
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 ended 30 June 2021
amounted to $1,138,815.
(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.
(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) are recognised in respect of employees’ services up
to the end of the reporting period, and 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.
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 transaction cost and offset against equity in the
statement of financial position.
(i)
Foreign currency translation and transactions
Both the functional and presentation currency of the Company is in Australian dollars.
Transactions in foreign currencies are initially recorded in the functional currency by applying the exchange rates ruling at the date of the
transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the balance date.
(j)
Income tax
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.
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:
(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.
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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 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
(k)
Joint Arrangements
(o)
Property, plant and equipment
The Company entered into a collaborative joint arrangement with the University of Western Australia during the year ended 30 June 2020 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.
(m)
Cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term highly liquid investments
with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an
insignificant risk of changes in value.
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.
(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 60 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.
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
AASB 16 Leases
AASB 16 has been adopted from 1 July 2019. The standard replaces AASB 117 "Leases" and for leases 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 disclosed as repayment of lease liabilities.
Impact of adoption
AASB 16 was adopted from 1 July 2019. The lease recognised in the financial statements was entered into on 1 July 2019.
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 from a 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 12.
(q)
Trade and other payables
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 60 days of recognition.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
(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.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
(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.
(v)
Goods and Services Tax (GST) and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the tax
authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or
payable to, the tax authority is included in 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 not yet Mandatory
AASB 2020-1 Amendments to Australian Accounting Standards - Classification of Liabilities as Current or Non-current.
AASB 2020-1 makes amendments to AASB 101 Presentation of Financial Statements by clarifying requirements for the presentation of
liabilities as current or non-current in the statement of financial position. This standard applies to reporting periods beginning on or after 1
January 2022, and will be adopted by the Company in the year ended 30 June 2022.
Revised Conceptual Framework for Financial Reporting.
In May 2019, the AASB issued a revised Conceptual Framework for Financial Reporting, to apply to periods beginning on or after 1 January
2020.
Whilst not an accounting standard, the new conceptual framework seeks to provide guidance and assistance in relation to:
•
•
•
•
•
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 has concluded that no additional references are required to be made for stated items of income or other comprehensive
income, assets or liabilities.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
2. LOSS FOR THE YEAR
Loss for the full year included the following:
Notes
Consolidated
Entity
2021
$
Consolidated
Entity
2020
$
(a) Research & Development Tax incentive (i)
1,290,899
1,138,815
(b) Other expenses (income)
Unrealised loss (gain) in foreign currency translation
Realised loss in foreign currency translation
Loss (gain) on sale of property, plant and equipment
(c) Employee and labour expenses
Salaries and wages
Other personnel costs
Superannuation
Increase in leave liabilities
Share based payments expense
1(h), 14
-
23,402
( 6,204)
2,211,096
223,957
205,974
85,701
2,726,728
147,500
2,874,228
4,200
9,978
-
1,805,722
114,776
172,112
34,421
2,127,031
112,715
2,239,746
(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 2021, 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 2022.
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
2021
$
Consolidated
Entity
2020
$
-
-
-
-
(Loss) from continuing operations
( 2,859,663)
( 1,743,770)
Tax at the Australia tax rate 26% (27.5% for 2020)
( 743,512)
( 479,537)
Tax effect of the amounts that are not deductible / (taxable) in
calculating taxable income
- Share based payments
- Research and development tax incentive
- Expected cedit losses
- Reduction in loss for tax incentive
38,350
( 335,634)
45,653
995,143
-
30,997
( 313,174)
-
761,714
-
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
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 26% (27.5% for 2020)
Consolidated
Entity
2021
$
Consolidated
Entity
2020
$
3,435,614
893,260
2,356,999
648,175
The tax benefits of the above deferred tax assets will only be obtained if:
(i)
(ii)
(iii)
the Company derives future assessable income of a nature and of an amount sufficient to enable the benefits to be utilised;
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
Notes
Reconciliation of loss after income tax to net cash flows from operating activities
1(h), 14
Loss for the year
Non-cash items:
Depreciation
Share based payments expense
Financing Activities:
Share issue in lieu of cash payment
Loans to employees
Investing Activities:
Gain on sale of Property, Plant and Equipment
Operating Activities:
(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 17 for further information on risk exposure.
24,473
85,701
3,435,614
3,545,788
987
34,271
2,356,999
2,392,257
554,834
5,050,000
5,604,834
2,315,022
50,000
2,365,022
( 2,859,663)
( 1,743,770)
372,518
147,500
180,000
-
363,708
112,715
36,000
57,500
( 6,204)
-
63,538
( 43,930)
( 148,848)
86,016
( 2,209,073)
136,808
5,384
612,270
34,877
( 384,508)
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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 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
5. REVENUE
8. RIGHT-OF-USE ASSET
The Company has disaggregated revenue into various categories which is intended to:
•
•
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
less: Expected credit losses (c)
Other receivables - GST Receivable
Consolidated
Entity
2021
$
-
1,310,824
1,310,824
Consolidated
Entity
2020
$
-
1,423,070
1,423,070
-
1,310,824
1,310,824
-
1,423,070
1,423,070
972,653
-
198,344
105,309
34,518
1,310,824
999,261
130,313
55,030
213,000
25,466
1,423,070
434,170
( 175,588)
42,466
301,048
328,662
-
35,925
364,587
(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.
(b) Fair value of trade and other receivables:
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 calculated to be $175,588 as at 30 June 2021.
Receivables includes service related revenue for which payment has been delayed due to the COVID-19 pandemic.
Refer to Note 17 for further information on risk exposure.
(c)
(d)
(e)
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.
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
Consolidated
Consolidated
Entity
2021
$
Entity
2020
$
191,737
( 127,824)
63,913
2,447,034
( 1,250,158)
1,196,876
1,308,277
205,166
( 7,961)
( 308,606)
1,196,876
191,737
( 63,912)
127,825
2,257,098
( 948,821)
1,308,277
213,677
1,394,396
-
( 299,796)
1,308,277
142,273
121,414
263,687
181,996
77,940
259,936
7. OTHER ASSETS
Current:
Research and development tax incentive (see note 2(a)(i))
Patent Fee - Advances
Contract asset
Unsecured Loans (i)
Prepayments (ii)
(i)
(ii)
(iii)
unsecured loans to selected employees
comprises prepaid insurance, consulting fees, subscriptions and office rent
refer to Note 17 for further information on risk exposure
1,290,899
10,585
-
-
130,444
1,431,928
1,138,815
-
134,398
57,500
57,284
1,387,997
(a) Classification of trade and other payables:
Trade payable are unsecured and are usually paid within 60 days of 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 17 for further information on risk exposure.
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Proteomics International Laboratories Ltd
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
11. PROVISIONS
13. ISSUED CAPITAL
Current:
Fringe Benefits Tax
Employee benefits - annual leave
Non-current
Employee benefits - long service leave
12. LEASE LIABILITY
Consolidated
Consolidated
Entity
2021
$
771
174,981
175,752
Entity
2020
$
456
110,528
110,984
111,749
90,501
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.
Current:
Lease liability
Non-current
Lease liability
69,046
69,046
-
-
63,799
63,799
69,044
69,044
Ordinary Shares
Total consolidated issued capital
Movement in share capital
Date
Details
1/07/2020
23/10/2020
26/02/2021
15/03/2021
30/06/2021
Opening balance
Issue of shares (i)
Exercise of options (ii)
Exercise of options (iii)
Less: Transaction costs
Closing balance
2021
Shares
2020
Shares
2021
$
2020
$
105,205,875
92,405,875
19,095,227
13,391,543
Number of
shares 2021
Amount
$
92,405,875
12,500,000
150,000
150,000
105,205,875
13,391,543
6,000,000
75,000
75,000
( 446,316)
19,095,227
(i)
Issued following placement to UK and Australian-based institutions, sophisticated and professional investors.
(ii)
(iii)
Corporate Advisors Alto Capital and Adelaide Equity Partners exercised 150,000 options.
Employees exercised 150,000 unquoted employee options pursuant to an Employee Incentive Option Plan.
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
Number of
shares 2020
80,686,965
110,770
225,000
10,858,140
525,000
92,405,875
$
10,537,267
36,000
67,500
3,040,279
157,500
( 447,003)
13,391,543
(i)
Issued to Director Paul House in lieu of cash payment for director's fees and pursuant to the Director Fee Plan
(ii)
Employees exercised unquoted employee options pursuant to an Employee Incentive Option Plan.
d b
h
h ld
(iii)
Issued following placement to new and existing institutional, sophisticated and professional investors.
(iv)
Employees exercised unquoted employee options pursuant to an Employee Incentive Option Plan.
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.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
14. OPTIONS
(a) Options - Issued
Options exercisable at $0.50 each (i)
Options exercisable at $0.50 each (iii)
Options exercisable at $0.50 each (iv)
Options exercisable at $0.50 each (v)
Options exercisable at $0.67 each (ii)
Options exercisable at $0.75 each (vi)
Options exercisable at $0.75 each (vii)
Options exercisable at $1.75 each (viii)
Total issued options
Movement in options issued
As at 1 July
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 (v)
Issued during the period (iii)
Exercise of options during the period (iii)
Issued during the period (iv)
Exercise of options during the period (iv)
Issued during the period (vi)
Issued during the period (vii)
Issued during the period (viii)
As at 30 June
Proteomics International Laboratories Ltd
Proteomics International Laboratories Ltd
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2021
Options
2020
Options
400,000
2,890,279
400,000
1,250,000
400,000
1,100,000
1,100,000
500,000
8,040,279
400,000
3,040,279
550,000
-
400,000
-
-
-
4,390,279
2021
2020
Average
exercise
price
$0.46
Number of
Options
4,390,279
-
-
-
-
-
-
$0.50
$0.50
$0.50
$0.75
$0.75
$1.75
$0.62
-
-
-
-
1,250,000
-
( 150,000)
-
( 150,000)
1,100,000
1,100,000
500,000
8,040,279
Average
exercise
price
$0.30
$0.25
$0.30
$0.30
$0.35
$0.50
$0.50
-
-
-
-
-
-
Number of
Options
3,075,000
( 25,000)
( 750,000)
( 1,000,000)
( 500,000)
-
3,040,279
-
550,000
-
-
-
-
$0.46
4,390,279
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
14. OPTIONS (continued)
Issued options outstanding at the end of the year have the following expiry date and exercise price:
Grant Date
21/11/2018 (i)
21/11/2018 (ii)
27/03/2020 (iii)
11/05/2020 (iv)
18/08/2020 (v)
2/11/2020 (vi)
2/11/2020 (vii)
30/04/2021 (viii)
Expiry Date
22/11/2021
22/11/2022
27/03/2023
1/05/2023
18/08/2023
2/11/2022
2/11/2022
30/04/2023
Exercise Price No. Options
400,000
400,000
2,890,279
400,000
1,250,000
1,100,000
1,100,000
500,000
$0.50
$0.67
$0.50
$0.50
$0.50
$0.75
$0.75
$1.75
(i)
(ii)
(iii)
(iv)
(V)
(Vi)
(Vii)
(Viii)
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.
Unlisted - 3,040,279 options issued to corporate advisors - Alto Capital and Adelaide Equity Partners for
services provided during year ended 30 June 2020. On 26 February 2021, 150,000 options were exercised
by the payment of 50c per option ($75,000). 2,890,279 unlisted options remain as at 30 June 2021.
Unlisted - 550,000 employee options issued to employees of the Company during the year ended 30 June
2020 for nil consideration under an Employee Incentive Option Plan. On 15 March 2021, 150,000 oprions
were exercised by the payment of 50c per option ($75,000). 400,000 unlisted options remain at 30 June
Unlisted - 1,250,000 options issued to consultant, Candor Advisory Pty Ltd for services provided during
the year ended 30 June 2021. These previously unissued Corporate Advisory Options were granted on 22
April 2020 and valued at $24,875. On 18 August 2020 these Corporate Advisory Options were
subsequently issued, and therefore revalued to be $147,500 - refer (a) Fair Value of Corporate Advisory
Unlisted - 1,100,000 options issued to consultant, Euroz Hartleys Securities Limited for services provided
during the year ended 30 June 2021.
Unlisted - 1,100,000 options issued to consultant, Candor Advisory Pty Ltd for services provided during
the year ended 30 June 2021.
Unlisted - 500,000 options issued to consultant, Euroz Hartleys Securities Limited for services provided
during the year ended 30 June 2021.
(a) Fair Value of Corporate Advisory Options - Candor Advisory Pty Ltd
The options (Corporate Advisory Options) were granted on 22 April 2020 pursuant to the terms of an investor relations and corporate
advisory agreement. These Options vest based on the share price of Proteomics International Laboratories Limited exceeding $0.45 for a 20-
day VWAP.
Although the issue of these options occurred on 18 August 2020, they have been valued at the grant date, 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
1,250,000
22 April 2020
18 August 2023
$0.29
$0.50
0.270%
80%
nil
$0.118
The value placed on these Corporate Advisory Options is $147,500 and this share based payment expense is included in the statement of
profit or loss and other comprehensive income in the year ended 30 June 2021.
The Company has used the trinomial 'up-and-in' barrier option pricing model to value the Corporate Advisory Options.
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Proteomics International Laboratories Ltd
Proteomics International Laboratories Ltd
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
14. OPTIONS (continued)
15. RESERVES
(b) Fair Value of Corporate Advisory Options - Euroz Hartleys Securities Limited
These options, 1,100,000 in total, were issued to Euroz Hartleys Securities Limited for nil consideration and being for advisory services
following completion of a share placement by the Company in October 2020. The value placed on these options is $60,000 and represents
a cost in relation to the capital raising. An amount of $60,000 has been expensed as financial advisory fees in the statement of profit or loss
and other comprehensive income in the year ended 30 June 2021.
On 28 January 2021, these Corporate Advisory Options were subsequently issued by the payment of $0.0001 per option ($110).
(c) Fair Value of Corporate Advisory Options - Candor Advisory Pty Ltd
These options, 1,100,000 in total, were issued to Candor Advisory Pty Ltd for nil consideration and being for advisory services following
completion of a share placement by the Company in October 2020. The value placed on these options is $60,000 and represents a cost in
relation to the capital raising, and as such, this share based payment is included inshare issue costs in the year ended 30 June 2021. On 28
January 2021, these Corporate Advisory Options were subsequently issued by the payment of $0.0001 per option ($110).
(d) Fair Value of Corporate Advisory Options - Euroz Hartleys Securities Limited
The Company entered into a new mandate with Euroz Hartleys Securities Limited on 30 April 2021 (ASX announcement 30 April 2021) for
the provision of corporate advisory services over a period of 12 months. The mandate is for $120,000 and is to be paid by $60,000 of cash
and by the issue of 500,000 unlisted options. These options were issued on 30 April 2021, and the value placed on the options is $60,000.
Each option will be exercisable at $1.75 and have an expiry date of 30 April 2023.
An amount of $20,000 has been expensed as financial advisory fees in the statement of profit or loss and other comprehensive income in
the year ended 30 June 2021, with the balance to be expensed in the year ended 30 June 2022.
(b) Options - Unissued
Consultant Options - Candour Advisory Pty Ltd (i)
Total Unissued options
There were no Unissued Options as at 30 June 2021.
2021
Options
2020
Options
-
-
1,250,000
1,250,000
(i) Consultant Options - Candour Advisory Pty Ltd. These Consultant Options were issued on 18 August 2020.
(c) Share based payments expense
Share based payments expense comprising:
Consultant options - refer Note 14 (a)
Employee share scheme
Consolidated
Entity
2021
$
Consolidated
Entity
2020
$
147,500
-
147,500
24,538
88,177
112,715
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Consolidated
Entity
2021
$
Consolidated
Entity
2020
$
783,666
208,577
179,062
-
1,171,305
456,166
208,577
179,062
210,295
1,054,100
(a) Share based payments reserve comprising:
(i) Payments to consultants
(ii) Employee share scheme
(iii) Director A & B options
(b) Option reserve *
* These options have been extinguished during the year ended 30 June 2021. The value attributed to these extinguished options has
been reclassified into share capital via a reduction in Reserves (refer note 15 (b) and a corresponding reduction in Accumulated
Losses (refer note 16).
(a) Share based payments reserve
(i) Share based payments to consultants:
2021
Options
2020
Options
2021
$
2020
$
Consultants - unlisted options
6,840,279
4,290,279
783,666
456,156
Movements in share based payments to consultants: Consultants - unlisted options
Date
1/07/2020
18/08/2020
28/01/2021
26/02/2021
28/02/2021
30/04/2021
30/06/2021
Details
Opening balance
Revaluation of options (refer Note 14(a))
Issue of unlisted options
Exercise of options
Issue of unlisted options
Issue of unlisted options
Closing balance
Refer to Note 14 for further information.
Number of
options
4,290,279
-
1,100,000
( 150,000)
1,100,000
500,000
6,840,279
$
456,166
147,500
60,000
-
60,000
60,000
783,666
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Proteomics International Laboratories Ltd
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
15. RESERVES (continued)
(ii) Employee share scheme
Employee - unlisted options
2021
Options
2020
Options
2021
$
400,000
550,000
208,577
2020
$
208,577
Movements in employee share scheme: Employee - unlisted options
Date
1/07/2020
26/02/2021
30/06/2021
Details
Opening balance
Exercise of options
Closing balance
Number of
options
550,000
( 150,000)
400,000
$
208,577
-
208,577
Refer to Note 14 for further information.
(iii) Director A & B options
15. RESERVES (continued)
(b) Option reserve
Total consolidated issued options - listed
-
-
-
210,295
2021
Option
2020
Option
2021
$
2020
$
Movements in issued options: Consolidated issued options - listed
Date
1/07/2020
31/12/2020
30/06/2021
Details
Opening balance
Reclassification of option reserve (i)
Closing balance
Number of
options
-
-
-
$
210,295
( 210,295)
-
2021
Options
2020
Options
2021
$
2020
$
(i) These options have been extinguished during the year ended 30 June 2021. The value attributed to
these extinguished options has been reclassified into share capital via a reduction in Reserves (refer note
15 (a) and a corresponding reduction in Accumulated Losses (refer note 16).
Director A & B - unlisted options
800,000
800,000
179,062
179,062
Movements in director A & B options: Director A & B - unlisted options
No options expired during the year ended 30 June 2021
Date
1/07/2020
30/06/2021
Details
Opening balance
Closing balance
Number of
options
800,000
800,000
$
179,062
179,062
Refer to Note 14 for further information.
16. ACCUMULATED LOSSES
Opening balance
Reclassification of option reserve
Loss for the year
Closing balance
Consolidated
Entity
2021
$
Consolidated
Entity
2020
$
( 10,007,742)
210,295
( 2,859,663)
( 8,263,972)
-
( 1,743,770)
( 12,657,110)
( 10,007,742)
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
17. FINANCIAL RISK MANAGEMENT
17. FINANCIAL RISK MANAGEMENT (continued)
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
2021
$
Consolidated
Entity
2020
$
5,604,834
258,582
-
1,290,899
7,154,315
2,365,022
463,060
57,500
1,138,815
4,024,397
( 221,866)
( 69,046)
( 290,912)
( 259,936)
( 132,843)
( 392,779)
(a) excludes GST receivables and prepayments
(b) the receipt of the Research & Development tax incentive will occur in the year ending 30 June 2022
(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.
The following sets out the Company's exposure to interest rate risk, including the effective weighted average interest rate by maturity
periods.
Details
Note
Weighted Average
Interest Rate
Total
$
30 June 2021 Consolidated
Financial assets
Cash and cash equivalents
30 June 2020 Consolidated
Financial assets
Cash and cash equivalents
2.59%
5,604,834
0.89%
2,365,022
All other financial instruments have either a zero coupon rate or a fixed interest rate.
Sensitivity
At 30 June 2021, 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 $2,545 lower / ($2,545) higher (2020 changes of 0.25% / 0.25%: $1,552 lower/ ($1,552)
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 2021
USD
255,974
JPY
-
30 June 2020
USD
213,748
JPY
0
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
2021
2020
$
$
( 14,803)
( 16,305)
54,861
60,475
Impact on equity
2021
$
16,305
( 60,475)
2020
$
14,803
( 54,861)
Credit risk is managed on a group basis. Credit risk arises from cash and cash equivalents and deposits with banks and financial institutions,
as well as credit exposures to retail customers, including outstanding receivables and committed transactions. For banks and financial
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
2021
$
Consolidated
Entity
2020
$
5,604,834
2,365,022
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
17. FINANCIAL RISK MANAGEMENT (continued)
(c) Liquidity Risk
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 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 2021
Non-derivatives
Non-interest bearing
Trade payables
Interest bearing
Borrowings
Lease Liability
Total non-derivative
Contractual
maturities
of financial
As at 30 June 2020
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
$
142,273
-
-
35,016
177,289
-
36,276
36,276
-
-
-
-
-
-
-
-
142,273
142,273
-
71,292
213,565
-
69,046
211,319
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
(ii) Financing arrangements
The Company has a $50,000 overdraft facility with its financial institution in place as at 30 June 2021.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
17. 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 favorable 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.
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.
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.
18. CONSOLIDATED ENTITIES
Name of entity
Accounting Parent
Proteomics International Pty Ltd
Two-Tag Holdings Pty Ltd (i)
Legal Parent
Proteomics International
Laboratories Ltd
Class of
share
Country of
Incorporation
Equity Holding
2021
2020
%
%
Australia
Australia
100
100
100
-
Ordinary
Australia
-
(i) Two-Tag Holdings Pty Ltd was incorporated on 19 August 2020 and holds the patents related to Oxidative Stress ("Two-Tag") as
detailed in the Review of Operations.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
19. REMUNERATION OF AUDITORS
22. DIVIDENDS
(a) Audit services
- BDO Audit (WA) Pty Ltd
(b) Non-audit services
- BDO Corporate Finance
- BDO Corporate Tax (WA) Pty Ltd (i)
Consolidated
Entity
2021
$
Consolidated
Entity
2020
$
48,535
47,454
-
3,100
-
5,120
(i) Consulting services have been provided by BDO Corporate Tax during the year ended 30 June 2021.
20. 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
The Company pays fees to access strategic locations to use laboratories and specialised equipment to undertake its operations.
21. RELATED PARTIES
(a) Key management personnel (KMP) compensation
Short-term employee benefits
Post-employment benefits
The directors of the Company comprise the key management personnel.
Compensation is paid to the directors individually.
390,000
58,901
448,901
376,000
58,636
434,636
(b) Transactions with KMP's
There were no consultancy services provided by key management personnel during the year ended 30 June 2021. Ian Roger Moore provided
business development services in the amount of $2,065 during the year ended 30 June 2020 on terms no more favorable than those
reasonably expected under arm's length dealings with unrelated persons.
No loans were provided by Key Management Personnel during the year ended 30 June 2021.
The directors have not paid or declared a dividend during the financial year ended 30 June 2021.
23. CONTINGENT LIABILITIES
The Company is not aware of any material contingent liabilities for the year ended 30 June 2021.
24. 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 Company’s revenues and the research and development activities as
well as the finance, treasury, compliance and funding elements of the Company.
25. LOSS PER SHARE
(loss) attributable to ordinary shareholders
Weighted average number of ordinary shares*
Loss per share
Consolidated
Entity
2021
$
Consolidated
Entity
2020
$
( 2,859,663)
( 1,743,770)
101,703,361
87,415,789
( $0.03)
( $0.02)
*Includes the effect of the transactions (under continuation accounting) for the purpose of the comparative earnings per share
calculation.
26. EVENTS OCCURRING AFTER THE REPORTING PERIOD
On 16 July 2021, the Company announced that its collaborative study with Janssen Research & Development had found a
significant reduction in the PromarkerD risk scores of patients with type 2 diabetes taking canagliflozin, an SGLT2‐inhibitor
diabetes drug.
On 22 July 2021, the Company announced that global life science company Abcam plc had been engaged to produce specialist
reagents for the immunoassay version of the PromarkerD test for diabetic kidney disease.
On 4 August 2021, the Company announced a research collaboration agreement with the University of Melbourne and the Royal
Women's Hospital to collaborate to develop a simple blood test for endometriosis.
On 12 August 2021, the Company announced that it had contracted European immunoassay specialist Biotem to manufacture
PromarkerD test kits.
Other than that outlined above, there has been no other matter or circumstance which has arisen since 30 June 2021 that has
significantly affected or may significantly affect:
(a) the operations, in financial periods subsequent to 30 June 2021, of the Company,
(b) the results of those operations,
(c) the state of affairs, in financial periods subsequent to 30 June 2021, of the Company.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
Directors’ Declaration
27. PARENT ENTITY INFORMATION
The Directors of the Company declare that:
The following information relates to the legal parent entity, Proteomics International Laboratories Ltd, as at 30 June 2021. The information
presented here has been prepared using consistent accounting policies as presented in Note 1.
2021
$
2020
$
7,497,501
4,510,692
-
-
7,497,501
4,510,692
78,978
-
78,978
72,791
-
72,791
7,418,523
4,437,901
( 404,932)
( 203,348)
-
-
( 404,932)
( 203,348)
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 2021.
Commitments of the parent entity
Other than as described at Note 20, the Company does not have any other on-going commitments.
28. INTERESTS IN OTHER ENTITIES
The Company does not currently have any interests in other entities.
29. DEED OF CROSS GUARANTEE
The Company has not currently entered into a deed of cross guarantee.
30. ASSETS PLEDGED AS SECURITY
The Company has no assets that have been pledged as security.
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 2021 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
2021 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:
Dated: 30 August 2021
27 August 2021
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Independent Auditor’s Report
Independent Auditor’s Report
INDEPENDENT AUDITOR'S REPORT
To the members of Proteomics International Laboratories Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Proteomics International Laboratories Limited (the Company)
and its subsidiaries (the Group), which comprises the consolidated statement of financial position as at
30 June 2021, the consolidated statement of profit or loss and other comprehensive income, the
consolidated statement of changes in equity and the consolidated statement of cash flows for the year
then ended, and notes to the financial report, including a summary of significant accounting policies
and the directors’ declaration.
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Act 2001, including:
(i) Giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its
financial performance for the year ended on that date; and
(ii) Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
Report section of our report. We are independent of the Group in accordance with the Corporations
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters.
Accounting for Share‐based Payments
Key audit matter
How the matter was addressed in our audit
As disclosed in Note 14 to the Financial Report, the
Group issued options to corporate advisors for services
provided during the period.
Refer to note 1 of the financial report for a description
of the accounting policy and significant estimates and
judgements applied to these transactions.
In accordance with AASB 2 Share‐based payment the
valuations of the share‐based payments require
complex and judgemental estimates used in determin‐
ing the valuation of the share based payments.
We consider the accounting for the share‐based
payment expense to be a key audit matter.
Our audit procedures in respect of this area
included but were not limited to the following:
• Reviewing the share‐based payment
arrangements to understand the key terms;
• Assessing the valuation model and assumptions
used to measure and value the share‐based
payments relating to the options;
• Involving our valuation specialists to assess the
assumptions used in the Group's calculation being
the valuation methodology, share price of the
underlying equity, risk free rate and volatility;
• Considering the vesting conditions of the options;
and
• Assessing the adequacy of the disclosure in the
financial report.
Other information
The directors are responsible for the other information. The other information comprises the
information in the Group’s annual report for the year ended 30 June 2021, but does not include the
financial report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due
to fraud or error.
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In preparing the financial report, the directors are responsible for assessing the ability of the group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website (http://www.auasb.gov.au/Home.aspx) at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 30 to 37 of the directors’ report for the
year ended 30 June 2021.
In our opinion, the Remuneration Report of Proteomics International Laboratories Limited, for the year
ended 30 June 2021, complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with
Australian Auditing Standards.
BDO Audit (WA) Pty Ltd
Neil Smith
Director
Perth, 30 August 2021
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Shareholder Information
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