Annual
Report
2022
ACN 169 979 971
ASX: PIQ
2
0
2
2
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.
Contents
FROM THE CHAIR
KEY ACHIEVEMENTS
WINDOW ON THE SCIENCE – Oesophageal Cancer
TECHNOLOGY SNAPSHOT – The PromarkerD Immunoassay
DIRECTORS’ REPORT
REVIEW OF OPERATIONS
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
BOARD OF DIRECTORS AND OPERATIONAL TEAM
MATERIAL BUSINESS RISKS
REMUNERATION REPORT
AUDITOR’S INDEPENDENCE DECLARATION
FINANCIAL STATEMENTS
Consolidated Statements of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flow
Notes to the Consolidated Financial Statements
DIRECTORS’ DECLARATION
INDEPENDENT AUDITOR’S REPORT
SHAREHOLDER INFORMATION
GLOSSARY
2
3
4
6
8
9
23
25
28
30
42
43
74
75
79
83
1
Proteomics International Laboratories Ltd From the Chair
Dear Shareholder,
Dear Shareholder,
I am delighted to introduce Proteomics International’s annual report on behalf of the Board, featuring
I am delighted to introduce Proteomics International’s annual report on behalf of the Board, featuring
activities and achievements for the year ended 30 June 2022.
activities and achievements for the year ended 30 June 2022.
Since joining the Board in November last year, I have been impressed by the drive, commitment, and
Since joining the Board in November last year, I have been impressed by the drive, commitment, and
professionalism of the Proteomics International team as we seek to realise the commercial value of
professionalism of the Proteomics International team as we seek to realise the commercial value of
the Company’s flagship PromarkerD test for diabetic kidney disease while maintaining an active and
the Company’s flagship PromarkerD test for diabetic kidney disease while maintaining an active and
successful research and development pipeline.
successful research and development pipeline.
It has been a busy year and highlights include the achievement of several milestones:
It has been a busy year and highlights include the achievement of several milestones:
• Study with Janssen Research & Development showed a diabetes drug offers a potential treatment
Study with Janssen Research & Development showed a diabetes drug offers a potential treatment
for those patients at high-risk of developing diabetic kidney disease identified by PromarkerD.
for those patients at high‐risk of developing diabetic kidney disease identified by PromarkerD.
Successful production of a pilot batch of PromarkerD test components to assemble more than
• Successful production of a pilot batch of PromarkerD test components to assemble more than
50,000 tests to ISO 13485 international manufacturing standard.
50,000 tests to ISO 13485 international manufacturing standard.
Expansion of the PromarkerD distribution network to Britain.
• Expansion of the PromarkerD distribution network to Britain.
The appointment of world‐leading clinicians, specialising in nephrology and endocrinology, to the
• The appointment of world-leading clinicians, specialising in nephrology and endocrinology, to the
Company’s Clinical Advisory Board, providing invaluable advice on clinical and commercial
Company’s Clinical Advisory Board, providing invaluable advice on clinical and commercial
initiatives.
initiatives.
• Publication of studies consolidating the clinical performance and utility of PromarkerD.
Publication of studies consolidating the clinical performance and utility of PromarkerD.
It has also been exciting to see significant advances in the Company’s pursuit of novel diagnostics
It has also been exciting to see significant advances in the Company’s pursuit of novel diagnostics
tools. Development of the Company’s diagnostic test for endometriosis has delivered successful
tools. Development of the Company’s diagnostic test for endometriosis has delivered successful
preliminary results from a validation study in collaboration with the University of Melbourne and the
preliminary results from a validation study in collaboration with the University of Melbourne and the
Royal Women’s Hospital. A diagnostic test for oesophageal cancer has also progressed, with the
Royal Women’s Hospital. A diagnostic test for oesophageal cancer has also progressed, with the
Company licensing biomarkers from QIMR Berghofer following successful initial clinical validation of
Company licensing biomarkers from QIMR Berghofer following successful initial clinical validation of
the biomarkers in an earlier collaboration.
the biomarkers in an earlier collaboration.
The PromarkerTM platform has the potential to improve the lives of millions of people. We continue
The Promarker™ platform has the potential to improve the lives of millions of people. We continue to
strive to bring PromarkerD to people with diabetes globally and deliver novel diagnostics in areas of
to strive to bring PromarkerD to people with diabetes globally and deliver novel diagnostics in areas
significant unmet medical need.
of significant unmet medical need.
In recent weeks there has also been exciting progress towards the roll-out of PromarkerD in the United
In recent weeks there has also been exciting progress towards the roll‐out of PromarkerD in the United
States, alongside a successful capital raising, and I look forward to detailing these developments next
States, alongside a successful capital raising, and I look forward to detailing these developments next
year.
year.
Finally, I would like to acknowledge my predecessor Terry Sweet, who retired at the 2021 AGM. Mr
Finally, I would like to acknowledge my predecessor Terry Sweet, who retired at the 2021 AGM. Mr
Sweet was instrumental in taking the Company from its initial public listing as an R&D-focused $10
Sweet was instrumental in taking the Company from its initial public listing as an R&D‐focused $10
million enterprise to the commercially‐driven $100 million (circa) business it is today.
million enterprise to the commercially-driven $100 million (circa) business it is today.
Key Achievements
PromarkerD
• Diabetes treatment lowers PromarkerD risk score
• Clinical Advisory Board appointed
Collaborative study with Janssen Research &
Development found a significant reduction in the risk
scores of patients taking canagliflozin, an SGLT2-inhibitor
diabetes drug
World-leading clinicians specialising in nephrology and
endocrinology to advise the Company on its clinical and
commercial initiatives
• PromarkerD registration submitted to the TGA
• Clinical utility study demonstrates appeal of
Submission an important step for the national and global rollout
PromarkerD testing to clinicians
Research demonstrated PromarkerD can help inform
doctors’ treatment decisions to improve clinical
outcomes for patients with type 2 diabetes
• Manufacture of PromarkerD immunoassay test
Successful pilot batch of PromarkerD test components
completed with Biotem producing key components to
assemble more than 50,000 tests
• PromarkerD distribution network expands to Britain
Distribution agreement with Apacor Limited (UK) to
bring PromarkerD to patients in England, Scotland
and Wales
• PromarkerD significantly outperforms standard of
care tests in predicting future kidney function decline
Study compared the PromarkerD test to standard of care
tests during a four-year follow-up period
• PromarkerD completed ‘pre-assessment’ for Medicare rebate
Application lays the groundwork for the test to be added to the
Medicare Benefits Schedule
• FDA advised regulatory pathway for PromarkerD in US
Notification from the United States Food and Drug
Administration (FDA) that the PromarkerD test system should
follow a De Novo classification pathway for regulatory approval
• Study showed PromarkerD ability to also predict late-stage
kidney decline in type-2 diabetes patients
Study extended the potential use of PromarkerD to predict a
further decline in renal function among people who already
have kidney disease
• Intellectual property portfolio expanded
PromarkerD IP now covers 63% of the world’s population living
with diabetes
Diagnostics
ENDOMETRIOSIS
OESOPHAGEAL ADENOCARCINOMA
• Agreement with University of Melbourne and
• Successful clinical validation study for
Royal Women’s Hospital to collaborate on a test
for endometriosis
Partnership linked biomarkers discovered by
Proteomics International with world-leading
endometriosis database
• Endometriosis clinical validation study and
diagnostic model completed
Preliminary results showed several plasma proteins are
statistically significant markers for endometriosis
• Samples secured for independent validation
of endometriosis biomarkers
Collaboration with St John of God Health Care allows
access to further clinical samples
oesophageal adenocarcinoma
Proteomics International and QIMR Berghofer identified a panel
of biomarkers with the potential to be used as a diagnostic test
• Exclusive licence for oesophageal
adenocarcinoma biomarkers
Proteomics International secured a worldwide licence to
commercialise biomarkers first discovered at QIMR Berghofer
AIRWAY DISEASE
• Proof-of-concept study identified multiple novel
biomarkers for obstructive airway disease
Once validated, biomarkers have the potential to deliver a
new diagnostic test for asthma and chronic obstructive
pulmonary disease (COPD)
Thank you for your continued investment in Proteomics International.
Thank you for your continued investment in Proteomics International.
Analytical Services
Yours sincerely,
Yours sincerely,
Neville Gardiner
Neville Gardiner
Chair, Proteomics International
Chair, Proteomics International
2
• Major analytical services contract for pharmacokinetic testing
Circa $400,000 contract part of growing partnership with Linear Clinical Research
Corporate
• Board renewal
Dr Robyn Elliott and Neville Gardiner welcomed to the Board in November as independent, non-executive Directors
3
Proteomics International Laboratories LtdProteomics International Laboratories Ltd
1
7th
most common cancer
worldwide in 2018 was
oesophageal cancer1
1 in 20
cancer deaths worldwide
in 2018 attributed to
oesophageal cancer1
1 in 125
men in the United States
will be diagnosed with
oesophageal cancer in
their lifetime2
1 in 417
women in the United
States will be diagnosed
with oesophageal cancer
in their lifetime2
Barrett’s oesophagus
Barrett’s oesophagus is a pre-malignant condition
in which the normal tissue lining of the oesophagus
changes to resemble the lining of the intestine.
An estimated 10–15% of patients with chronic acid
reflux develop Barrett’s oesophagus.1
People with Barrett’s oesophagus are much more
likely to get oesophageal adenocarcinoma, and
are advised to get regular endoscopies to screen
for oesophageal cancer. In studies of Western
populations, about 1–2 per cent of adults were
estimated to have Barrett’s oesophagus.3
Current diagnosis
The most common investigation
for oesophageal cancer currently is
an endoscopy1. This expensive and
invasive test sees a doctor use a thin,
flexible tube with a camera at the
end to look at a patient’s digestive
tract. A small amount of tissue may
also be removed and examined by
a pathologist to check for signs of
disease. The test is usually performed
as day surgery.
Impact
A simple blood test would help doctors
diagnose people with oesophageal
adenocarcinoma earlier. It would allow
patients to get treatment earlier than
they otherwise would, improving survival
outcomes. The test would also help doctors
decide treatment plans based on the
assessment of the cancer’s progression.
The Promarker™
pipeline
Proteomics International is developing
a simple blood test for oesophageal
adenocarcinoma using diagnostic
biomarkers that can distinguish
between different stages of
progression to the disease. Proteomics
International has secured an exclusive
worldwide license to commercialise the
technology that was first discovered
by researchers from QIMR Berghofer
Medical Research Institute.
If successful, the test will target
patients with Barrett’s oesophagus
to diagnose oesophageal
adenocarcinoma without the
need for an endoscope.
4
5
1 Nature Reviews Gastroenterology & Hepatology, doi.org/10.1038/s41575-021-00419-3
2 American Cancer Society
3 American Society for Gastrointestinal Endoscopy, www.asge.org
Window on the science Oesophageal adenocarcinoma Oesophageal adenocarcinoma is the most common type of oesophageal cancer in Australia. Early phases of the disease may not have symptoms, and the cancer is usually not detected until the advanced stages. The overall five-year survival for oesophageal cancer is less than 20 per cent.45Proteomics International Laboratories LtdProteomics International Laboratories LtdPILLPILLProteomics International Laboratories LtdProteomics International Laboratories Ltd In the lab:
3. The PromarkerD CaptSure™ test:
a. The samples, standards, and QC are
pipetted into the microplates (each plate
is dedicated to measuring one of the three
biomarkers).
b. For each plate, a specific mixture of
Capture Antibody and Detection Antibody
Reagent is added to bind the target protein
biomarkers.
c. Detection Antibodies bind to the
biomarkers, while Capture Antibodies bind
to the biomarkers and the microplate.
d. Wash Buffer is used to wash away anything
that is not bound to the microplate.
e. After Wash Buffer is removed, Detection
Reagent is added to the microplate. The
detection reagent reacts with the Detection
Antibodies, causing colour to appear in the
solutions. The more biomarker captured,
the more intense the colour generated.
f. The reactions are halted when the Stop
Reagent is added to the microplate.
g. A plate reader measures the amount
of light absorbed to determine the
concentration of each biomarker.
• Microplates Coated with CaptSure™ Reagent1
• Microplate Seals
• Sample Dilution Buffer
• Detection Reagent
• Wash Buffer
• Stop Solution
• Quality Control (QC)
• Capture Antibody Reagents
• Detection Antibody Reagents
• Freeze Dried Stock Biomarker Standard
The PromarkerD test uses cutting-edge
biomarker technology to help patients plan
more effective treatments (with their doctor)
against diabetic kidney disease (DKD).
PromarkerD measures three protein
biomarkers [Apolipoprotein A4, CD5 antigen-
like, Insulin growth factor binding protein]
from plasma together with standard clinical
factors [age, high-density lipoprotein
(HDL) cholesterol concentration, estimated
glomerular rate (eGFR)] to provide patients
their risk score of developing DKD in the
next 4 years.
From the patient’s perspective:
1. The doctor recommends that a
PromarkerD test should be done to
determine the patient’s risk score
of developing diabetic kidney
disease (DKD).
2. A blood sample is collected and
sent to the testing laboratory.
4. The results are analysed; standards and QC
are checked to ensure the results are valid.
5. The biomarker results and clinical
measurements are uploaded to the
PromarkerD hub.
6. A test report is automatically generated for the
clinician showing the risk score of developing
DKD in the next 4 years.
Back to the patient:
7. The patient meets with their doctor who is
then able to provide more accurate treatments
for the patient.
1. CaptSure™ Technology (by TGR BioSciences, an Abcam Company) is
a next generation immunoassay that delivers a faster and simpler
assay protocol.
6
7
67Technology SnapshotThe PromarkerD ImmunoassayWith the successful production of over 50,000* PromarkerD tests for predicting diabetic kidney disease (DKD), Proteomics International is one step closer to helping people receive better treatment for DKD through earlier detection of the disease. Proteomics International Laboratories LtdProteomics International Laboratories LtdPILLPILLThe PromarkerD process: What’s in the kits?*Each PromarkerD kit manufactured has enough reagents for 76 testsStandard diabetes monitoring.Retest annually.‡Consider more frequent monitoring.Retest every 6 months.‡Consider very close monitoring.Retest every 3 months.‡0% to <10%Low four-year risk of developing DKD.10% to <20%Moderate four-year risk of developing DKD.20% to 100%High four-year risk of developing DKD.Proteomics International Laboratories LtdProteomics International Laboratories Ltd Directors’ Report
Review of Operations
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 2022.
DIRECTORS
The Directors of the Company in office during the financial year and until the date of this report are as follows:
Mr Neville Gardiner
Mr Terry Sweet
Dr Richard Lipscombe
Dr Robyn Elliott
Mr Paul House
Mr Roger Moore
(Non-Executive Chairman)
(Non-Executive Chairman)
(Managing Director)
(Non-Executive Director)
(Non-Executive Director)
(Non-Executive Director)
(Appointed 16 November 2021)
(Retired 25 November 2021)
(Appointed 9 June 2014)
(Appointed 16 November 2021)
(Appointed 22 November 2017)
(Appointed 14 October 2016)
OPERATING RESULT
To be read in conjunction with the attached Consolidated Financial Report (see page 43).
The operating result for the year was:
Loss before income tax
Loss for the year
Comprising
Revenue and Other income
Expenses
Change
CONSOLIDATED
74%
74%
15%
44%
2022
2021
$4,972,960
$4,972,960
$2,859,663
$2,859,663
$3,436,458
$8,409,418
$2,988,493
$5,848,156
The Group’s financial report for the year ended 30 June 2022 includes:
• Operating revenue from analytical services grew to $1.49 million, an increase of 14% compared to the previous year.
• Combined Income from all sources increased 15% to $3.44 million. Revenue from ordinary activities encapsulates
income from analytical services and Grant Income including the R&D incentive.
• Operational Expenditure increased to $8.41 million, and focused on the commercialisation and production of the
PromarkerD test and expansion of the Promarker™ diagnostics pipeline.
•
The loss from ordinary activities increased 74% to $4.97 million, which reflects normal operational costs and non-cash
items including share-based payments.
•
The net cash outflow from operating activities was $3.54 million, an increase of 60%.
• At 30 June 2022 the Group had cash reserves of $2.11 million, and trade and other receivables of $0.4 million.
On the back of the Company’s research and development focus, it anticipates an R&D Tax Incentive cash rebate of
$1.71 million, to be received in the December Quarter of 2022.
DIVIDENDS
No dividend was paid during the year and the Board has not recommended the payment of a dividend.
ISSUED CAPITAL
105,705,875 fully paid ordinary shares (ASX: PIQ), 7,990,279 unlisted options and 439,977 performance rights were on issue
as at 30 June 2022.
ANNUAL GENERAL MEETING
Proteomics International advises that its 2022 annual general meeting (AGM) is scheduled to be held on 24 November 2022.
The Company encourages shareholders to attend the AGM and receive an update on the strategy and initiatives of the Group.
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.
International’s business model
Proteomics
is
centred on the commercialisation of the Company’s
for diabetic kidney disease,
pioneering
PromarkerD. The Company offsets the cash burn
test
from R&D and product development through
provision of specialist analytical services, whilst using
its proprietary Promarker™ technology platform to
create a pipeline of novel diagnostic tests.
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
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 people with diabetes who
went on to develop chronic kidney disease
within four years1.
2. Diagnostics
Proteomics International’s diagnostics development is
made possible by the Company’s proprietary biomarker
discovery platform called Promarker™, which searches
for protein ‘fingerprints’ in a sample. This disruptive
technology can identify proteins that distinguish
between people who have a disease and people who do
not, using only a simple blood test. It is a powerful
alternative to genetic testing. The technology
is so versatile it can be used to identify
‘fingerprints’ from any biological
source, from wheat seeds to a blood
sample. The global biomarkers
market is expected to reach
USD 147.6 billion by 20282.
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 78.3 billion by 20303, whilst the market size of the global
biosimilar market was valued at USD 15.6 billion in 2021, and is projected to
reach USD 44.7 billion by 20264. 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 2021: Biomarkers Market Size
3. Grand View Research 2022: Clinical Trials Market Size
4. Markets and Markets 2021: Biosimilars Market by Product
5. Allied Market Research 2021: Proteomics Market by Component
8
9
Proteomics International Laboratories LtdProteomics International Laboratories Ltd PromarkerD
The Problem
Roadblock
Diseased Kidney
PromarkerD – Licensing and distribution
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
• 463 millions diabetics globally
Proteomics International continues to progress the worldwide roll-out of its flagship
• 1-in-3 diabetic adults have
PromarkerD test for diabetic kidney disease. The Company has made significant
chronic kidney disease
• There is no early warning - kidney function
advances across licensing and distribution, manufacturing and regulatory approvals.
can fall below 15-20% with no symptoms
• Diabetic kidney disease leads to renal failure
In 2021-22, key milestones include demonstrating that at-risk patients identified
which requires dialysis (US$72,000 p.a.)
or kidney transplant
by PromarkerD could potentially be treated with SGLT2-inhibitor drugs (see Annual
• Total cost of diabetic kidney disease =
Report 2021 – Technology Snapshot – Gliflozins), contracting of Northern Hemisphere
US$130 Bn per year in USA alone
manufacturers and successful technology transfer, and progression towards roll-out
of PromarkerD in the major markets of the United Kingdom and United States.
• Doctors can then prescribe an early
therapeutic treatment to slow or stop
the onset of disease
• PromarkerD can predict the onset of disease before
clinical symptoms appear (up to four years prior)
• Kidneys remain healthier for longer, saving
healthcare systems billions of dollars
• Improve quality of life
Solution
Healthy Kidney
Problem & Solution
The Problem
• 537 million people with diabetes globally
• 1-in-3 adults with diabetes 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
About PromarkerD
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
• If unchecked, 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
Solution
• Kidneys remain healthier for longer, saving
healthcare systems billions of dollars and
improving quality of life for patients
Healthy Kidney
Source: International Diabetes Federation (IDF) Atlas 10th Edition 2021. US Renal Data System 2020
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 patients with diabetes went on to develop diabetic kidney disease within four years.
Further information is available through the PromarkerD web portal: www.PromarkerD.com
Proteomics International continues to target the global roll-out of PromarkerD
across multiple regions.
PromarkerD expands to the US
Subsequent to the year end, the Company announced
that after an extensive evaluation period it had signed
a binding and exclusive Letter of Intent (LOI) with Sonic
Healthcare USA, Inc. (a division of Sonic Healthcare Ltd)
(Sonic Healthcare USA) regarding entering into an exclusive
licence for use of PromarkerD in the United States. The LOI
documents the preliminary terms and expectations for how
Proteomics International and Sonic Healthcare USA will work
together to bring the PromarkerD test to patients in the US
(excluding Puerto Rico), and for finalising an Exclusive Licence
Agreement. The PromarkerD test will be launched in the US
via the Laboratory Developed Test (LDT) pathway using Sonic
Healthcare USA’s CLIA certified clinical laboratories.
PromarkerD distribution network expands to Britain
In November, Proteomics International signed a distribution
agreement with Apacor Limited (UK) to bring PromarkerD
to patients in England, Scotland and Wales. The distribution
agreement provides medical diagnostics company Apacor
Limited with the right to sell the immunoassay version of
the PromarkerD test.
Apacor have 25 years of experience in medical and analytical
diagnostics and specialise in bringing ground-breaking
technologies to their customers. Importantly, Apacor have
strong relationships with government and professional
healthcare bodies across the UK.
Proteomics International’s partnering activities
Technology
Status
Start/Term Commentary
Agreement
Type
Licence
Distribution
Immunoassay-
LDT
Immunoassay
Kit
In negotiation
In discussion
Licence
/Distribution
Immunoassay Market/partner
assessment
Territory
Partner
Targets 30 Jun 2022
USA
Europe
RoW
Partners 30 Jun 2022
UK
Apacor
Negotiations advance towards execution with
potential laboratory partners.
Discussions ongoing with new potential
distributors for France, Ireland, Italy,
Poland, Spain.
Country market assessments have been
completed for all sales territories covered by the
Company’s patent portfolio. Potential strategic
partners are being identified.
Distribution
[Exclusive]
Immunoassay
Kit
Live
[Pre-launch]
Nov 2021-23
Preparing documentation for reimbursement
assessment by UK National Health Service (NHS).
Israel
Zotal
Distribution
[Exclusive]
Immunoassay
Kit
Live
[Inactive]
Nov 2020-22
Registration of PromarkerD in Israel on hold since
Feb 21 pending: (1) kit manufacturer to ISO 13485;
(2) PromarkerD sales in another region.
In negotiation about future steps.
Puerto Rico
& Dominican
Republic
Omics Global
Solutions
Technology
Licence
[Exclusive]
Innovatio ND2
(developed own
Immunoassay)
Live
Aug 2016-31*
Test launched in Puerto Rico via Immuno
Reference Lab June 2022. Currently focused on
KOL awareness initiatives.
Ireland
Atturos
Technology
Licence
[Non-exclusive]
MS-LDT
Live
[Inactive]
Feb 2020-23
Technology transfer completed for PromarkerD
MS-LDT.
Italy
Medical
Horizons
Distribution
[Exclusive]
Immunoassay
Kit
Terminated
[Dormant]
Oct 2020-22
Agreement terminated 27 July 2022.†
Spain
Patia Europe
Mexico
Patia
BioPharma
Licence
[Exclusive]
Licence
[Exclusive]
MS-LDT
Expired
[Dormant]
Nov 2018-20
Agreement expired.
MS-LDT
extended to
Immunoassay
Expired
[In negotiation]
Jun 2018-21
Registration of PromarkerD in Mexico on hold
since Jun 21 pending: (1) kit manufacturer to
ISO 13485; (2) Free sale certificate following
TGA or FDA registration.
In negotiation about future steps.
MS - mass spectrometry LDT - Laboratory developed test * Life of Patents (20 Sep 2031)
† Proteomics International is in discussions with several parties for new EU sales territories, including the Italy market. The Italian distribution agreement was the
Company’s first immunoassay partner immediately prior to the Covid-19 pandemic and Proteomics International has now adopted an improved assessment system
to qualify potential new partners based on key capabilities required to successfully launch, promote and run the PromarkerD test.
10
11
Proteomics International Laboratories LtdProteomics International Laboratories Ltd
PromarkerD – Manufacturing
PromarkerD – Clinical
The completion of technology transfer represented a major milestone and enables
production of PromarkerD for large-scale global distribution.
Northern Hemisphere manufacturers engaged for
PromarkerD immunoassay test
Proteomics International has strengthened its supply chain
for scale-up of PromarkerD production by contracting
European immunoassay specialist Biotem to manufacture
PromarkerD test kits and engaging global life science
company Abcam plc to produce specialist reagents for the
immunoassay version of the test.
The milestone agreements will see Biotem, an ISO
13485 certified manufacturer, produce the PromarkerD
immunoassay kit using specialist reagents (antibodies and
recombinant proteins) produced by Abcam.
In June, a pilot batch of PromarkerD test components
was successfully completed with Biotem producing key
components to assemble more than 50,000 tests.
Company awarded more than $500,000
manufacturing funding
In November 2021, Proteomics International was awarded
a $100,000 voucher to support the manufacture of clinical
diagnostic tests in Western Australia. The funding was
made possible through the MTPConnect WA Life Sciences
Innovation Hub MTP Manufacturing Voucher Program, and
was announced by WA State Development, Jobs and Trade
Minister Roger Cook.
In May 2022, Proteomics International was awarded a
further $413,516 in funding to support the PromarkerD
manufacture in Australia. The funding was awarded by
MTPConnect as part of the Australian Government’s
$45 million BioMedTech Horizons program, an initiative
of the Medical Research Future Fund. All funding will be
matched dollar-for-dollar by Proteomics International.
The strong evidence base underpinning PromarkerD continues to grow.
collaborative
Diabetes treatment lowers PromarkerD risk score
(Janssen Stage 2 Collaboration)
conducted by Proteomics
A
International and Janssen Research & Development found
a significant reduction in the PromarkerD risk scores of
patients with type 2 diabetes taking canagliflozin, an
SGLT2-inhibitor diabetes drug.
study
The study was the second stage of the collaboration
between Proteomics International and Janssen, in which
the companies examined the association between
canagliflozin, an approved diabetes therapy with additional
renal benefits, and change in PromarkerD score. The
research measured PromarkerD scores in blood samples
from more than 2,000 patients in the completed CANVAS
clinical trial.
PromarkerD significantly outperforms standard of care
tests in predicting future kidney function decline
A clinical study demonstrated that the PromarkerD test for
diabetic kidney disease outperforms current standard of
care tests in predicting the onset of diabetic kidney disease.
The research compared the PromarkerD test to standard of
care tests, the estimated glomerular filtration rate (eGFR)
and urinary albumin:creatinine ratio (ACR) during a four-
year follow-up period.
The clinical study involved retrospective analysis of more
than 850 community-based patients with type 2 diabetes
from the Fremantle Diabetes Study Phase II. Results
showed PromarkerD correctly identified 84% of patients
with normal kidney function who went on to experience
kidney function decline in the next four years.
The results showed the average PromarkerD risk score of
patients taking canagliflozin dropped during the three-
year trial, while the average risk score of patients taking
a placebo rose. The biggest reductions were seen in the
patients classified by PromarkerD at the start of the trial as
at high risk of developing DKD. The findings were presented
at the Australasian Diabetes Congress in August 2021.
Critically, all of these patients would have been missed
by the eGFR and ACR tests which constitute the current
gold standard of care under the global KDIGO (Kidney
Disease Improving Global Outcomes) guidelines for risk
classification. The study was presented at Kidney Week 2021,
the annual meeting of the American Society of Nephrology
(ASN), in November.
PromarkerD Presentations & Publications 2022
PromarkerD Predicts Late-Stage Renal Issues
Peters KE. et al. PromarkerD Predicts Late-Stage Renal Function Decline in Type 2 Diabetes in
the Canagliflozin Cardiovascular Assessment Study (CANVAS). Poster presented at the American
Diabetes Association’s 82nd Scientific Sessions, 2022
PromarkerD vs Standard of Care
Peters KE, et al. A Comparison of PromarkerD to Standard of Care Tests for Predicting Renal
Decline in Type 2 Diabetes. Poster presented at Kidney Week 2021, the annual meeting of the
American Society of Nephrology (ASN), 2021
Clinical Utility Study
Fusfeld L, et al. Evaluation of the Clinical Utility of PromarkerD In-Vitro Test in Predicting
Diabetic Kidney Disease and Rapid Renal Decline. Poster presented at AMCP Nexus, 2021.
Published in PLOS ONE subsequent to the year end.
Drug Treatment Study
Kirsten KE, et al. Canagliflozin attenuates PromarkerD diabetic kidney disease risk prediction
scores. Poster presented to the Australasian Diabetes Congress, 2021
12
13
Proteomics International Laboratories LtdProteomics International Laboratories Ltd PromarkerD – Clinical
PromarkerD – Regulatory and reimbursement
Proteomics International is pursuing regulatory approval in multiple jurisdictions as
part of its global commercialisation strategy.
Groundwork for PromarkerD reimbursement code in US
Proteomics International is set to seek a reimbursement
code for the PromarkerD test
in the US, following
extensive engagement with expert panels representing
physicians, laboratories and payors, conducted alongside
comprehensive economic health benefit modelling and its
clinical utility study demonstrating the appeal of the test to
clinicians (see PromarkerD – Clinical).
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 Veranex Solutions (formerly Boston Healthcare
Associates) to demonstrate the potential economic health
benefit of the PromarkerD test compared to the current
standard of care. All companies seeking reimbursement for
any new test are required to provide a dossier demonstrating
the potential benefits of the test to insurance companies
and other payors in the US.
PromarkerD registration submitted to the TGA
In June 2022, Proteomics International filed a submission
to the Australian Therapeutic Goods Administration (TGA)
for inclusion of PromarkerD in the Australian Register of
Therapeutic Goods (ARTG). The submission is an important
step for the national and global rollout of PromarkerD
because Australia is one of the major reference countries,
in addition to the US Food & Drug Administration (FDA),
European Union CE Mark, Health Canada and Japan.
The TGA will now review the submission, a process which
is expected to take six to nine months. If approval for
registration is successful then PromarkerD can be sold
in Australia.
FDA advised regulatory pathway for PromarkerD in US
In November 2021, Proteomics International received
notification from the United States Food and Drug
Administration (FDA) that the PromarkerD test system
should follow a De Novo classification pathway for
regulatory approval. The De Novo pathway for medical
device marketing in the US was added by the FDA to
address novel devices of low to moderate risk, such as
blood tests, that do not have a valid predicate device, i.e.
there is no similar device already approved.
The PromarkerD test will first be launched in the US via the
LDT pathway via CLIA (Clinical Laboratory Improvement
Amendments) certified laboratories. This pathway does
not require FDA approval and is commonly used for novel
diagnostic tests.
PromarkerD completed ‘pre-assessment’ for
Medicare rebate
In February 2022, Proteomics International completed
‘pre-assessment’ phase of Australia’s medical
the
reimbursement system for PromarkerD. The application
lays the groundwork for the test to be added to the
Medicare Benefits Schedule (MBS), an important step in
bringing PromarkerD to the Australian market. Inclusion
on the schedule would mean eligible patients receive a
Medicare rebate for the test.
Clinical utility study demonstrates appeal of
PromarkerD testing to clinicians
A clinical utility study demonstrated that PromarkerD
can help inform doctors’ treatment decisions to improve
clinical outcomes for patients with type 2 diabetes. The
US-based web survey of 400 primary care physicians and
endocrinologists found the PromarkerD test significantly
impacted physicians’ prescribing and monitoring decisions.
The analysis showed that PromarkerD tests were more
important to physicians than the current standard-of-
care tests — eGFR and ACR. More than three-quarters of
physicians reported they were very or extremely likely to
use PromarkerD in the future.
Study showed PromarkerD ability to also predict
late-stage kidney decline in type-2 diabetes patients
An additional study demonstrated the potential ability of
the PromarkerD test to predict late-stage renal decline.
PromarkerD is already a proven diagnostic test for diabetic
kidney disease, predicting the onset of the condition up to
four years in advance. This study extended the potential use
of PromarkerD to predict a further decline in renal function
among people who already have kidney disease.
The research is preliminary but showed PromarkerD has
the potential to warn of late-stage outcomes, such as
progression to macroalbuminuria, in patients both with
and without existing kidney damage.
The results were presented at AMCP Nexus, a managed-care
pharmacy conference in Denver, USA, in association with
Veranex Solutions (formerly Boston Healthcare Associates)
and specialist US endocrinologists, in October.
Subsequent to the year end, Proteomics International
announced that the study demonstrating the clinical
utility of the PromarkerD test in predicting diabetic kidney
disease was published in the journal PLOS ONE (a peer-
reviewed, open access journal published by the Public
Library of Science).
The finding came from analysis of the completed
CANagliflozin cardioVascular Assessment Study (CANVAS),
as part of the ongoing collaboration between Proteomics
International and Janssen Research & Development, LLC.
The results were presented at the American Diabetes
Association’s 82nd Scientific Sessions, in June in New
Orleans, United States.
14
15
Proteomics International Laboratories LtdProteomics International Laboratories Ltd PromarkerD – Market
Proteomics International is pursuing multiple avenues to drive the global uptake of
PromarkerD through engagement with key professional bodies and clinical experts
in diabetes and nephrology.
Clinical Advisory Board appointed
Proteomics
International has assembled a team of
world leading clinicians specialising in nephrology and
endocrinology to advise the Company on its clinical and
commercial initiatives towards a successful launch of
the PromarkerD test for diabetic kidney disease to
physicians globally.
The Key Opinion Leaders (KOLs) will serve as global
brand ambassadors and provide validation towards the
Company’s clinical and commercial initiatives, providing
specific and tailored advice from the voice of the customer
perspective to assist the rollout of the PromarkerD test.
PromarkerD – Intellectual property
The Company’s PromarkerD intellectual property portfolio covers 63% of the
world’s population living with diabetes.
PromarkerD patent granted in India
In March 2022, Proteomics International was awarded a
patent for PromarkerD in India. The country is home to
more than 74 million people with diabetes, according to
the International Diabetes Federation, and that number is
expected to rise to almost 93 million by 2030. India has one
of the highest number of adults living with diabetes in the
world, second only to China.
Proteomics International already has a strong analytical
services footprint in India, having operated in the country
since 2004. The India patent complements those already
granted in the USA, Europe, Australia, Brazil, Canada,
China, Indonesia, Russia, Singapore and Japan. The India
patent (no. 390245) is titled ‘Biomarkers associated with
pre-diabetes, diabetes and diabetes related conditions’,
and will extend until September 2031.
European PromarkerD patent expanded
beyond diabetes
Subsequent to the year end, Proteomics International
announced that its European patent protection for the
Company’s PromarkerD predictive test had been expanded
to include diagnosing all individuals who are prediabetic
and asymptomatic for kidney disease. The European patent
has been granted for France, Germany, Italy, Spain, Turkey
and the United Kingdom, effective 27 July 2022, and is titled
“Biomarkers Associated with Pre-diabetes, Diabetes and
Diabetes Related Conditions” (patent number 3343226, and
is valid until September 2031).
16
17
16PromarkerD - Intellectual PropertyDiabetic Kidney Disease1 "Biomarkers associated with pre-diabetes, diabetes and diabetes related conditions" • Derived from International Patent Application PCT/AU2011/001212 • All patents valid until September 2031 Country/Region Application/ Patent No. Patent Title Diabetes Prevalence2 Australia 2011305050 1,491,800 Brazil BR 11 2013 006764 0 15,733,600 Canada 2811654 2,974,000 China ZL201180053583.9 140,869,600 Europe3 3151012 Biomarkers Associated with Diabetic Nephropathy 61,425,100 Hong Kong4 18115912.3 686,000 India 390245 74,194,700 Indonesia W00 2013 01585 19,465,100 Japan 2013-528474 11,005,000 Russia 2596486 7,392,100 Singapore 188527 711,800 USA 9146243 Method of assessing diabetic nephropathy using CD5 antigen-like 32,215,300 368,164,100 Total Pre-Diabetes and Diabetes5 • Patent valid until September 2031 Country/Region Application/ Patent No. Patent Title Pre-diabetes Prevalence6 Europe7 3343226 Biomarkers Associated with Pre-diabetes, 54,780,200 Diabetes and Diabetes Related Conditions Kidney Disease5 Country/Region Patent No. Patent Title Kidney Disease Prevalence Australia 2015202230 Biomarkers associated with kidney 1,700,0008 disease (Valid until September 2031) USA 9733259 Method of assessing a subject for abnormal kidney function (Valid until September 2031) USA10 US7842463 Method of diagnosing early stage renal impairment 37,000,0009 (Valid until 30 September 2027) USA 10191067B2 "Method for Identifying an Agent for Treating Abnormal Kidney Function" (Valid until September 2031) Europe10 EP1941274 Method for predicting the progression of chronic 100,000,00011 kidney disease by measuring apolipoprotein a-iv (Valid until 8 September 2026) 1 Clinical studies have validated the use of PromarkerD as a diagnostic and prognostic test for diabetic kidney disease 2 International Diabetes Federation (IDF) Atlas 10th Edition 2021 [Age group 20-79 years] with diabetes in 2021 3 Validated in France, Germany, Italy, Turkey, Spain, United Kingdom which cumulatively have 32.8 million adults with diabetes 4 Pending 5 Further studies needed to demonstrate that PromarkerD can be used to diagnose any form of kidney disease beyond diabetic kidney disease, or identifying a potential drug target 6 International Diabetes Federation (IDF) Atlas 10th Edition 2021 [Age group 20-79 years] with impaired glucose tolerance in 2021 7 Granted in France, Germany, Italy, Spain, Turkey and the United Kingdom, which cumulatively have 31.8 million adults with pre-diabetes 8 Australian Institute of Health and Welfare 9 Centers for Disease Control and Prevention. Chronic Kidney Disease in the United States, 2021 10 Licensed exclusively to Proteomics International from the University of Innsbruck 11 European Kidney Healthcare Alliance PromarkerD Patent CoverageProteomics International Laboratories LtdPILLPromarkerTM Trademark Coverage The patents cover use of the test for diabetic kidney disease (DKD) unless otherwise stated. • Class 44 - Medical diagnostic services (No 1776917) • Class 5 - Diagnostic apparatus for medical purposes including diagnostic kits (No 1806616) Country/Region Status Australia, Dominican Republic, European Union, Israel, Japan, South Korea, Mexico, New Zealand, Russia, Singapore, USAGranted China PendingProteomics International Laboratories LtdProteomics International Laboratories Ltd Diagnostics
Significant advances in several biomarker research programs seeking to develop
simple new diagnostic (Dx) tests in areas of significant unmet need.
Promarker™ pipeline advances
Proteomics International continues to reap the benefits of the Company’s strategy to expand its diagnostic development
pipeline in 2020. Several biomarker research programs are progressing to the next stage of the Promarker™ pipeline,
with four at the ‘clinical validation’ stage. Grey lines indicate project progress as reported in The Company’s 2021 Annual
Report. All programs are in areas of unmet need and have the potential to deliver significant value for the Company.
Subsequent to the year end, the Company announced
that an early version of its potential world-first blood test
for endometriosis had successfully detected up to 78 per
cent of people with the painful condition. The results were
presented at the Fertility Society of Australia and New
Zealand Annual Conference (FSANZ 2022). The Company
will now seek to confirm the clinical performance of the
new test in an independent patient cohort. To support
this
independent validation, Proteomics International
announced an additional collaboration with St John of God
Health Care.
Giardia (causing gastroenteritis)
Status update: Project ceased.
Validation study results were inconclusive and the decision
was made to terminate the current project plan.
Endometriosis
Status update: Clinical Validation study completed;
Statistical analysis ongoing.
Endometriosis is a common and painful disease that affects
one in nine women and girls [see Annual Report 2021:
Window on the Science]. It occurs when tissue similar to
the lining of the uterus grows into other parts of the body
where it does not belong. At the moment, there is no simple
way to test for the condition, which often causes pain and
infertility, and costs Australia $9.7 billion each year1.
The current gold standard for detection is an invasive
laparoscopy, a surgical procedure where a camera is inserted
into the pelvis through a small cut in the abdominal wall.
On average, it takes women 7.5 years to be diagnosed2.
In August 2021, the Company signed a research agreement
with the University of Melbourne and the Royal Women’s
for
Hospital to collaborate on a non-invasive test
endometriosis. Proteomics
International conducted a
clinical validation study of its biomarkers on samples from
the University of Melbourne and the Royal Women’s Hospital.
1 www.endometriosisaustralia.org
2 www.endometriosis-uk.org
18
Diagnostics
Asthma & COPD
Status update: Proof-of-concept study completed;
clinical validation pending.
Proteomics International completed a proof-of-concept
study that identified multiple novel protein biomarkers for
obstructive airway disease. These biomarkers, once validated,
have the potential to deliver a new diagnostic test for asthma
and chronic obstructive pulmonary disease (COPD).
The proof-of-concept study, performed in collaboration
with the Busselton Population Medical Research Institute,
analysed plasma samples from 75 individuals with a
range of symptoms including airway obstruction, atopy,
bronchial hyper-responsiveness and healthy controls.
The results were presented at the 27th Lorne Proteomics
Symposium, Victoria.
International will now work with
Proteomics
its
collaborators to validate the biomarkers in larger clinical
cohorts and refine the panel of biomarkers into a potential
new blood test for diagnosing obstructive airway disease.
The Company also filed a patent application covering
screening, diagnostic and prognostic methods of using
these airway disease biomarkers.
Plant dieback
Status update: Discovery phase successfully completed.
Validation phase to begin.
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.
A large number of biomarkers for the identification of
plant dieback have been discovered with the next step to
determine their detection level in ‘real life’ samples of soil
or plant material. This path is being pursued to develop a
diagnostic test for the presence of Dieback.
Diabetic retinopathy
Status update: Discovery study complete.
Proof-of-concept underway.
International extended
Following the success of the diabetic kidney disease project,
Proteomics
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.
Oxidative stress (2-tag)
Status update: Validation studies pending;
Commercialisation discussions underway.
Proteomics International has formalised its long-term
collaboration with The University of Western Australia
(UWA) to develop methodology that could become the
next generation of medical diagnostic tests. OxiDx Pty
Ltd (OxiDx), an incorporated joint venture between the
Company and UWA, has been formed to unlock the value
from the patented “2-tag” technology which measures the
oxidative stress in a system. The patents covering the ‘2-tag”
method (See page 20) are held by Two-Tag Holdings Pty Ltd,
a wholly owned subsidiary of OxiDx.
Oesophageal cancer
Status update: Initial clinical validation study completed.
Oesophageal adenocarcinoma
is the most common
form of oesophageal cancer in Australia. Proteomics
International is collaborating with QIMR Berghofer Medical
Research Institute (QIMRB) to develop a simple blood test
for oesophageal adenocarcinoma.
In June 2022, Proteomics International secured an exclusive
licence from QIMRB to commercialise its
worldwide
biomarkers for oesophageal adenocarcinoma. This followed
the successful collaborative initial clinical validation study
which identified and validated a panel of biomarkers
with the potential to be used as a simple diagnostic test.
The results of the study were presented at the 27th Lorne
Proteomics Symposium, the annual conference of the
Australasian Proteomics Society.
The data is now being further statistically analysed to
optimise the combination of biomarkers to refine the
test performance.
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, seeking a
Complementary Diagnostic test to assess treatments for
eye disease.
19
Proteomics International Laboratories LtdProteomics International Laboratories Ltd Diagnostics
Analytical services
The Company continues to experience high demand for its analytical services.
Proteomics International secures major analytical services contract for pharmacokinetic testing
Proteomics International was awarded a major pharmacokinetic testing contract in December as part of its growing
partnership with Linear Clinical Research. The circa $400,000 contract saw Proteomics International test a novel drug for
degenerative and inflammatory diseases on behalf of the Australian arm of pharmaceutical company Sironax Ltd.
Proteomics International Revenue
3,000,000
2,000,000
1,000,000
Analytical Services
Grants and other income
Research & Development
Tax Incentive
$
$
$
2015
2016
2017
2018
2019
2020
2021
2022
608,394
816,845
925,357
1,176,457
1,468,076
1,423,070
1,310,824 1,489,323
49,035
45,955
144,484
130,343
128,833
454,389
386,770
235,232
309,010
572,269
790,751
844,123
1,139,403
1,138,815
1,290,899
1,711,903
Oesophageal Cancer
Airway Disease
Duong M, et al. Translational Proteomics:
Establishing a Mass Spectrometry Assay for
Biomarkers of Oesophageal Cancer. Poster
presented at the 27th Lorne Proteomics
Symposium, 2022
Ito J, et al. Protein Biomarkers of
Obstructive Airway Disease. Poster
presented at the 27th Lorne Proteomics
Symposium, 2022
20
21
17Endometriosis - Intellectual Property "Endometriosis biomarkers" • If granted, patent projected to be valid until March 2041 Country/Region Application/ Patent No. Status International PCT/AU2021/050227 Pending Airway Disease - Intellectual Property "Airway disease biomarkers" Country/Region Application/ Patent No. Status Provisional 2022900265 Pending Oxidative Stress ("Two-Tag") - Intellectual Property Two-Tag owns two families of patents for Oxidative Stress in key markets with others pending FAMILY ONE patents related to "Methods for determining the redox status of proteins" • Derived from International Patent Application PCT/AU2006/001757 • All patents valid until November 2026 Country/Region Patent No. Status Australia 2006317506 Granted USA 8043824 Granted FAMILY TWO patents related to "Methods for measuring relative oxidation levels of a protein" If granted, all patents projected to be valid until March 2039 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 USA 17/041,551 Pending Oesophageal Cancer - Intellectual Property "Glycoprotein biomarkers for esophageal adenocarcinoma and Barett's esophagus and uses thereof" • All patents valid until November 2035 Country/Region Application/ Patent No. Status Australia1 2015349613 Granted Canada1 2967869 Pending China1 ZL201580072489.6 Granted Europe1,2 3221701 Granted/Validated Hong Kong1 HK1244877 Granted USA (continuation)1 17/165803 Pending 1 Licensed exclusively to Proteomics International from QIMR Berghofer Medical Research Institute 2 Validated in France, Germany, Spain, Turkey and United Kingdom Proteomics International Laboratories LtdPILLWorld’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 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 purposesAccreditation recognises Proteomics International's ability to consistently achieve technically valid, traceable and reproducible results. In 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. Proteomics International Laboratories LtdProteomics International Laboratories Ltd Company operations
CORPORATE ACTIVITY
Proteomics
International welcomed Dr Robyn Elliott
and Neville Gardiner to its Board in November 2021 as
independent, non-executive Directors.
Mr Gardiner is a seasoned finance professional with over
30 years’ experience advising Boards of public and private
companies, most recently as a partner of Deloitte. Dr
Elliott is an Executive Director at CSL Behring, a subsidiary
of CSL Limited [ASX: CSL], with a proven track record in
product development, clinical trials, regulatory affairs,
audits, quality management, project management and
operational strategy.
Mr Gardiner assumed the role of Chair, following the
retirement of Proteomics International Laboratories Ltd
Chairman Terry Sweet at the 2021 AGM. Mr Sweet was
instrumental in taking the Company from its initial public
listing as an R&D-focused $10 million dollar enterprise
to the commercially-driven $100 million (circa) business it
is today.
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.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
In the opinion of the Directors, there were no significant
changes in the state of affairs of the Group that occurred
during the financial year not otherwise disclosed in this
report and the financial statements.
EVENTS SINCE THE END OF THE FINANCIAL YEAR
On 25 July 2022, Proteomics International announced that its
European patent protection for the Company’s PromarkerD
predictive test had been expanded to include diagnosing
all individuals who are prediabetic and asymptomatic for
kidney disease.
On 1 August 2022, Proteomics International announced
that an early version of the Company’s potential world-first
blood test for endometriosis had successfully detected up
to 78 per cent of people with the painful condition.
On 2 August 2022, Proteomics International announced
that a study demonstrating the clinical utility of the
PromarkerD test in predicting diabetic kidney disease was
published in the journal PLOS ONE (a peer-reviewed, open
access journal published by the Public Library of Science),
providing peer-reviewed validation of initial results that
were previously presented at major industry conferences.
Environmental, Social and Governance
SOCIAL
Proteomics International’s mission is to improve the quality of lives by the creation and application of innovative tools that
enable the improved treatment of disease. In addition to the social impact of the Company’s core operations, Proteomics
International strives to foster the development of scientific knowledge and invest in its people.
STRATEGIC COLLABORATIONS
Proteomics International continues to work closely with the biotechnology and life science community across Australia.
Strategic collaborations promote the development of scientific knowledge and help Proteomics International realise its
scientific and business objectives.
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 International
is headquartered there and has held close ties with the
Perkins since 2006.
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 is currently training one scholar in
residence. Two interns are completing university studies in
Victoria and New South Wales. The program is on-going and
Proteomics International looks forward to supporting the
2023 class of budding life scientists.
On 9 August 2022, Proteomics International announced
that it had signed a binding and exclusive letter of intent
(LOI) with Sonic Healthcare USA, Inc. (a division of Sonic
Healthcare Limited; ASX: SHL) regarding entering into an
exclusive licence for use of the Company’s PromarkerD test
for diabetic kidney disease in the United States.
On 15 August 2022, Proteomics International announced
that it had received firm commitments for a share placement
to raise $8 million (before costs) through the issue of
9.41 million shares in the Company (“the Placement”).
The Placement was heavily oversubscribed, supported
by Australian-based institutions, and sophisticated and
professional investors and completed on 22 August 2022.
On 29 August 2022, Proteomics International announced
the spin-off of OxiDx Pty Ltd, an independent business
to commercialise technology for measuring oxidative
stress developed in collaboration with The University of
Western Australia.
No other matters or circumstances have arisen since the end
of the financial year that have significantly affected, or may
significantly affect the consolidated entity’s operations, or
the consolidated entity’s state of affairs in future years.
LIKELY DEVELOPMENTS
Proteomics International will continue to pursue the
commercialisation of its lead diagnostic test PromarkerD
in global markets. Potential licence partners are global and
regional diagnostic companies, diagnostic service providers,
and drug developers. In jurisdictions where licences have
already been granted, the focus will be on increasing the
adoption of the test by engaging with Key Opinion Leaders
and the broader network of clinical service providers.
As for any novel test, market penetration cannot be
predicted accurately, hence for each licence it is not
possible to quantify the financial impact on Proteomics
in any given timeframe. Nonetheless,
International
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
the
Company’s target areas and Proteomics International
anticipates further growth.
revenue continues
to grow
in
22
23
Proteomics International Laboratories LtdProteomics International Laboratories Ltd HUMAN CAPITAL
ENVIRONMENTAL
Proteomics International’s believes that its staff are a key
component of the Company’s continued success.
The Company enjoys a diverse and gender balanced
workforce.
Gender Diversity
ENVIRONMENTAL REGULATIONS
The Company is subject to and complies with 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 stakeholders and
enhances investor confidence. Proteomics International’s
corporate governance statement is available on the Company’s
website, in a section titled ‘Corporate Governance’.
41%
MALE
80%
MALE
50%
MALE
FEMALE
59%
FEMALE
20%
FEMALE
50%
Staff
Board
Senior
Management
Board of Directors and Operational Team
BOARD OF DIRECTORS
Neville Gardiner – Non-Executive Chairman (Independent)
Richard Lipscombe – Managing Director
Robyn Elliott - Non-Executive Director (Independent)
Paul House - Non-Executive Director (Independent)
Roger Moore - Non-Executive Director (Independent)
INFORMATION ON DIRECTORS
Director
Experience
Mr Neville Gardiner
BBus (Accounting
and Business Law)
Dr Richard Lipscombe
PhD (London),
MA (Oxford)
Dr Robyn Elliott
BSc (Hons) Chemistry,
PhD Inorganic
Chemistry
Mr Paul House
GAICD, BCom (UWA)
Mr Roger Moore
R (Denmark),
BPharm (U. Syd)
Neville was recently a Partner of Deloitte in its Mergers & Acquisitions Advisory
team. He is a seasoned finance professional with over 30 years’ experience advising
Boards of public and private companies on mergers and acquisitions, project
development, equity and debt capital markets, transaction structuring, capital
allocation and complex commercial problem solving. Prior to Deloitte Neville
was Co-Founder and Managing Director of Torridon Partners, an independent
corporate advisory firm. Torridon Partners was acquired by Deloitte in 2016.
He has held leadership positions at Macquarie Bank, Bank of America Merrill Lynch
and Arthur Andersen, and has broad industry sector exposure including health-
tech, fin-tech, mining and mining services, infrastructure, energy, and fabrication
and construction. Neville joined the Board in November 2021.
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 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.
Robyn is Global Head, Strategic Portfolio Management within the Global Network
Strategy team of CSL Behring, a subsidiary of CSL Limited (ASX:CSL). Her role is
responsible for governance and business value delivery oversight for a multi billion
dollar global capital expansion portfolio. She is also a non-executive director of
PolyNovo Limited (ASX:PNV).
Robyn’s 9 years at CSL Behring have included Senior Director roles for Strategic
Program Management, Strategic Expansion Projects and Quality, including
supporting the global network strategy team determining the ten-year expansion
plan for the CSL Behring global business. Prior to CSL Behring she was Managing
Director at IDT Australia Ltd (ASX:IDT) and commenced her career at DBL Faulding.
Robyn has a proven track record in product development, clinical trials, regulatory
affairs, audits, quality management, project management and operational
strategy. Robyn joined the Board in November 2021.
Paul has over 30 years’ experience with multi-national corporations and is currently
CEO of Imdex (ASX:IMD). He previously 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. Mr House has 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.
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 diabetes therapeutics including 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. In 2000 Roger was appointed Senior Vice President,
responsible for Novo Nordisk’s business in Japan, Australia, New Zealand and the
Pacific , and also a member of the Senior Management Board of Novo Nordisk A/S.
In 2007, Roger 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.
Special
Responsi-
bilites
Particulars of
Director’s interest
in securities of
the Company
Shares
Options
Chairman
-
Managing
Director
19,048,705
Nil
-
-
-
-
Nil
818,864
100,000
Nil
817,000
100,000
24
25
Proteomics International Laboratories LtdProteomics International Laboratories Ltd CURRENT AND FORMER DIRECTORSHIPS
Directors’ Name
Current Directorships
Former Directorships (last 3 years)
OPERATIONAL TEAM
Proteomics International has established and maintained a highly qualified, multilingual team with well-balanced
commercial and scientific expertise. The senior management group comprises:
Mr Neville Gardiner
Galena Mining Ltd (since 20 October 2021)
Mr Terry Sweet
Dr Richard Lipscombe
Nil
Nil
Dr Robyn Elliott
Mr Paul House
Mr Ian Roger Moore
PolyNovo Limited (since 28 October 2019)
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
COMPANY SECRETARY
Ms Karen Logan BCom, Grad Dip AppCorpGov, FCS, FGIA, F Fin, GAICD
Karen Logan is a Chartered Secretary with over 15 years’ experience in assisting small to medium capitalised ASX-listed
and unlisted companies with compliance, governance, financial reporting, capital raising, merger and acquisition, and IPO
matters. She is presently the principal of a consulting firm and secretary of a number of ASX-listed companies, providing
corporate and accounting services to those clients.
MEETINGS OF DIRECTORS
The number of meetings of the Company’s Board of Directors held during the year ended 30 June 2022 and the numbers of
meetings attended by each Director were:
Directors
Mr Neville Gardiner
Mr Terry Sweet
Dr Richard Lipscombe
Mr Ian Roger Moore
Mr Paul House
Dr Robyn Elliott
Full meetings of Directors
A
7
4
11
11
11
7
B
7
4
11
11
11
7
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 Financial Officer
Ms Jacqueline Gray
Jacqueline has more than 20 years experience as
a chartered accountant and executive, 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.
Chief Commercialisation Officer
Mr 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 interim Chief Executive Officer and board
director for surgical software startup ClaraSim Systems (via Stanford
University, 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.
Head of Business Development
Mr Chuck Morrison
Chuck has over 36 years experience in life sciences,
biotechnology, and diagnostic industries. Chuck
has an undergraduate degree in chemistry and
an MBA from Boston University. He has held
several management positions while at NEN Life
Sciences and DuPont before focusing his last 15
years in Business Development at PerkinElmer. Chuck has successfully
executed many licensing deals and several global acquisitions while
in this role. Chuck is based in Massachusetts, USA and started working
with the Company in May 2014.
Head of Logistics
Dr Pearl Tan
Pearl is responsible for coordinating and ensuring
the commercial delivery of PromarkerD and
the Promarker™ pipeline. Pearl has extensive
research
in management and
experience
commercialisation. Her previous roles include Chief
Operating Officer of Proteomics International,
Business Manager (PromarkerD), and leading the commercialisation of
the patented 2-tag technology (used to measure oxidative stress). Pearl
has a background in research and completed her PhD in Biochemistry
and Molecular Biology at The University of Western Australia. She has
been with Proteomics International since 2013.
Head of Research
Dr Scott Bringans
Scott has over 20 years of experience in protein
chemistry and mass spectrometry. Scott leads all
research areas within Proteomics International
including the company’s proprietary biomarker
discovery and development program (Promarker™)
and PromarkerD, the company’s predictive test
for diabetic nephropathy. Alongside these are 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 over 16 years.
Head of Clinical Studies
Dr Kirsten Peters
Kirsten has over 15 years of experience
in
clinical and genetic epidemiology. Kirsten leads
the clinical studies and biostatistics team at
Proteomics
International, responsible for the
development and validation of PromarkerD and
diagnostics in the Promarker™ pipeline. She has
been with the company for over 7 years and has been a Consultant at
the University of Western Australia for 15 years. Kirsten has extensive
experience in data analysis and has co-authored over 40 peer-
reviewed journal articles.
Business Manager - Analytical Services
Dr Javed Khan
Javed has international commercial experience
gained over 12 years in the life sciences and
diagnostic industries.
With a PhD
in Chemistry and Biomolecular
Sciences from Macquarie University, Javed joined
International as a computational
Proteomics
proteomics specialist in 2013, before transitioning into Project
Management/Business Development and was appointed Manager
of the Company’s extensive Analytical Services business and portfolio
in 2020. With a sound business acumen and global knowledge, Javed
has been pivotal in substantially growing the Pharmacokinetics
Testing arm of the Company’s business and is now also involved with
commercialising PromarkerD in India and the Middle East.
26
27
Proteomics International Laboratories LtdProteomics International Laboratories Ltd 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, manufacturing 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, manufacturing, supply chain 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,
manufacturing 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.
if
Further, even
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.
Research and Development Risk
The research and development process typically takes from 10
to 15 years from discovery to commercial product launch. This
process is conducted in various stages in order to test, along
with other features, the effectiveness and safety of a product.
There can be no assurance that any of these products and
services will be proven safe or effective.
Accordingly, there is a risk at each stage of development that the
Company will not achieve the goals of safety and/or effectiveness
and that the Company will have to abandon a product.
Intellectual Property
The following are considered to be risks to the Company’s
intellectual property:
(i) General
The patent protection that the Company may obtain varies
from product to product and country to country and may not
be sufficient, including maintaining product exclusivity. Patent
rights are also limited in time and do not always provide
effective protection for products and services: competitors
may successfully avoid patents through design innovation, the
Company may not hold sufficient evidence of infringement
to bring suit, or the infringement claim may not result in a
decision that the rights are valid, enforceable or infringed.
Legislation or regulatory actions subsequent to the filing date
of a patent application may affect what an applicant is entitled
to claim in a pending application and may also affect whether
a granted patent can be enforced in certain circumstances.
Laws relating to biotechnology remain the subject of ongoing
political controversy in some countries. The risk of changed
laws affecting patent rights is generally considered greater for
the biotechnology field than in other longer established fields.
(ii) Entitlement to Priority
In order for material disclosed in a patent application to be
entitled to the priority date of a corresponding earlier filed
application (e.g. a provisional application), there must be
adequate support or disclosure of such material in the provisional
application. Subject matter in a patent 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 development stage, 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.
Cybersecurity Risk
The Company is aware of the cybersecurity risk and data privacy
risk inherent in its operations. The Company mitigates these
risks using security measures and insurance as appropriate.
Resource Risk
The Company’s ability to deliver service and research and
development pipelines in a timely manner are dependent
on its equipment and resources operating accurately and
efficiently. The Company manages resource risk with regular
scheduled maintenance, backup arrangements, quality
processes, and regular communication.
Dependence on Key Relationships
The Company currently has 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 and services
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.
28
29
Proteomics International Laboratories LtdProteomics International Laboratories Ltd L LOGO
Remuneration Report
Remuneration Report
REMUNERATION REPORT (Audited)
The Remuneration Report is set out under the following main headings:
A
B
C
D
E
F
G
H
Principles Used to Determine the Nature and Amount of Remuneration
Remuneration Governance
Details of Remuneration
Directors' Agreements
Share‐Based Compensation
Additional Information
Additional disclosure relating to key management personnel
Transactions with the key management personnel
The information provided in this Remuneration Report has been audited as required by Section 308(3C) of the Corporations Act 2001.
The directors and other key management personnel of the Group during or since the end of the financial year were:
• Mr Neville Gardiner
Non‐Executive Chairman (independent) ‐ appointed 16 November 2021
• Mr Terry Sweet
Non‐Executive Chairman (independent) ‐ retired 25 November 2021
• Dr Richard Lipscombe
Managing Director
• Mr Ian Roger Moore
Non‐Executive Director (independent)
• Mr Paul House
Non‐Executive Director (independent)
• Dr Robyn Elliott
Non‐Executive Director (independent) ‐ appointed 16 November 2021
• Vikesh Malik
Chief Commercialisation Officer ‐ appointed 1 June 2021
•
Jacqueline Gray
Chief Financial Officer ‐ appointed 12 July 2021
Proteomics International Laboratories Ltd
PILL LOGO
Proteomics International Laboratories Ltd
REMUNERATION REPORT (continued)
A. Principles Used to Determine the Nature and Amount of Remuneration
The objective of the Company's remuneration framework is to ensure reward for performance is competitive and appropriate for
the results delivered and set to attract the most qualified and experienced candidates.
Remuneration levels are competitively set to attract the most qualified and experienced directors in the context of prevailing
market conditions.
The directors recognise that in the early stages of the Company's development and in a period where the Company is making losses
the objectives are to align the interests of the Board with shareholders and to attract, motivate and retain high performing
individuals. The Board believes that this can be achieved through the following framework:
•
•
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 Remuneration
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
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 2022:
Fixed
$
387,548
"At Risk"
$
‐
Total
$
387,548
30
31
Proteomics International Laboratories LtdProteomics International Laboratories Ltd
Proteomics International Laboratories Ltd
Proteomics International Laboratories Ltd
PILL LOGO
REMUNERATION REPORT (continued)
Executive Remuneration
The Executive Director and Other Key Management Personnel are included in the Executive Remuneration. Executive Remuneration
has been set based on the experience of each person in the Company's field of operations, and level of activity required to be
undertaken by each person in the management of the Company.
The Company's Executive Remuneration package contains the following key elements:
• primary benefits ‐ salary via an agreement; and
• options ‐ issued via an agreement.
• performance rights ‐ issued via an agreement.
Executive Remuneration Mix
The following table sets out the Key Management Personnels' remuneration mix for the year ended 30 June 2022:
Fixed
$
928,091
"At Risk"
$
83,177
Total
$
1,011,268
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
The objective of the consolidated entity's executive reward framework is to ensure reward for performance is competitive and
appropriate for the results delivered. The framework aligns executive reward with the achievement of strategic objectives and the
creation of value for shareholders, and it is considered to conform to the market best practice for the delivery of reward. The Board
of Directors ("the Board") ensures that executive reward satisfies the following key criteria for good reward governance practices:
•Compe��veness and reasonableness
•Acceptability to shareholders
•Performance linkage / alignment of execu�ve compensa�on
•Transparency
Share price at listing date ($A)
2018
2019
2020
2021
2022
$
0.20
$
0.20
$
0.20
$
0.20
$
0.20
Share price at financial year end ($A)
0.20
0.35
0.42
0.93
0.93
Total dividends declared (cents per share)
Basic loss per share (cents per share)
‐
( 0.02)
‐
( 0.03)
‐
( 0.02)
‐
( 0.03)
‐
( 0.05)
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 2021 Annual General Meeting, more than 75% of votes cast were in favour of adoption of the Company’s remuneration report
for the 2021 financial year. The Company did not receive any comments at the Annual General Meeting on its remuneration report.
32
REMUNERATION REPORT (continued)
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 and Other Key Management Personnel of the Company is set out below:
Cash Salary and Fees
Post‐
Employment
Benefits
Other Leave
Benefits
Share Based
Benefits
Share Based
Benefits
Directors
Fees
Salary
Superannuation
Leave Benefits
Equity‐settled
options
Equity‐settled
rights
$
$
$
$
$
$
‐
‐
‐
‐
‐
2,417
‐
4,375
4,687
2,813
‐
‐
‐
‐
‐
‐
‐
‐
124,392
62,197
265,383
30,000
34,617
‐
‐
‐
‐
‐
‐
‐
Total
$
26,584
43,750
48,125
175,954
93,135
330,000
2022
Non‐Executive Directors
Terry Sweet (i)
Ian Roger Moore
Paul House
Neville Gardiner (ii)
Robyn Elliott (ii)
Executive Director
Richard Lipscombe
Other Key Management
Personnel
Vikesh Malik (iii)
Jacqueline Gray (iv)
24,167
43,750
43,750
46,875
28,125
‐
‐
‐
TOTAL
186,667
653,705
207,692
180,630
15,000
19,559
78,851
17,308
14,956
66,881
68,228
39,540
84,851
33,504
393,079
288,189
294,357
118,355
1,398,816
2021
Non‐Executive Directors
Terry Sweet
Ian Roger Moore
Paul House
Executive Director
Richard Lipscombe
TOTAL
$
$
$
$
$
$
$
%
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
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
65,700
41,425
43,800
297,976
448,901
(i)
(ii)
(iIi)
(iv)
Terry Sweet retired as a Director on 25 November 2021
Appointed as Directors on 16 November 2021
Appointed on 1 June 2021
Appointed on 12 July 2021
PILL LOGO
Performance
Related
%
0%
0%
0%
0%
0%
0%
17%
6%
6%
0%
0%
0%
0%
0%
33
Proteomics International Laboratories LtdProteomics International Laboratories Ltd
PILL LOGO
PILL LOGO
Proteomics International Laboratories Ltd
Proteomics International Laboratories Ltd
REMUNERATION REPORT (continued)
REMUNERATION REPORT (continued)
D. Directors' and Other Key Management Personnel Agreements
D. Directors' and Other Key Management Personnel Agreements (continued)
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. The major provisions relating to
remuneration are set out below.
On appointment, the Executive Director and Key Management Personnel 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. Remuneration
and other terms of employment for the Executive Director and Other Key Management Personnel are formalised in services agreements.
The major provisions relating to remuneration are set out below.
Mr Neville Gardiner (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
$75,000
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
$45,000
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
$45,000
Statutory rate
N/A
None specified
Dr Robyn Elliott (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
$45,000
Statutory rate
N/A
None specified
Dr Richard Lipscombe (Managing Director)
Particulars
Term of the agreement
Base remuneration
Superannuation
Bonus payable
Leave entitlements
Termination of agreement
Terms
No fixed term
$300,000
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)
Vikesh Malik (Chief Commercialisation Officer)
Particulars
Term of the agreement
Base remuneration
Superannuation
Bonus payable
Leave entitlements
Termination of agreement
Terms
No fixed term
$225,000
Statutory rate
At the absolute discretion of the Board
20 days annual leave
3 months notice
Jacqueline Gray (Chief Financial Officer)
Particulars
Term of the agreement
Base remuneration
Superannuation
Bonus payable
Leave entitlements
Termination of agreement
Terms
No fixed term
$200,913
Statutory rate
At the absolute discretion of the Board
20 days annual leave
3 months notice
34
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Proteomics International Laboratories LtdProteomics International Laboratories Ltd PILL LOGO
PILL LOGO
Proteomics International Laboratories Ltd
REMUNERATION REPORT (continued)
E. Share‐based Compensation
The following options were exercised during the year:
Director
Number of Options
Grant Date
Expiry Date
Exercise Price
Terry Sweet (i) (ii)
Ian Roger Moore (i)
Paul House (i)
Total
200,000
100,000
100,000
400,000
22‐Nov‐18
22‐Nov‐18
22‐Nov‐18
22‐Nov‐21
22‐Nov‐21
22‐Nov‐21
$
0.50
0.50
0.50
Fair Value at
Grant Date (i)
$
44,206
22,103
22,103
88,412
(i)
(ii)
The options were issued as a reward and incentive and vested immediately. The value at the exercise date of options that were
granted as part of remuneration and were exercised during the year has been determined as the intrinsic value of the options at
Terry Sweet exercised 200,000 options on 4 November 2021, Ian Roger Moore exercised 100,000 options on 4 November 2021
and Paul House exercised 100,000 options on 4 November 2021. The amounts paid per ordinary share on the exercise of options
at the date of of exercise were $0.50 per share. No amounts are unpaid on any shares issued on the exercise of options.
Proteomics International Laboratories Ltd
REMUNERATION REPORT (continued)
Fair Value of Director C and Director D Options.
These unissued options were granted 15 November 2021 to newly appointed non‐executive directors Dr Elliott and Mr Gardiner as an
effective and efficient method of supplementing non‐executive director's fees.
Although these unissued options is subject to shareholder approval at the next AGM date, expected to be on 24 November 2022, they
have been provisionally valued at the grant/valuation date, as follows:
Particulars
Director C
Director D
Number of options
Valuation date
Expiry date
Underlying share price used
Exercise price
Risk‐free rate
Volatility
Dividend yield
Valuation per Option
375,000
30 June 2022
31 December 2024
$0.930
$1.237
3.29%
75%
nil
$0.4055
375,000
30 June 2022
31 December 2025
$0.930
$1.65
3.29%
75%
nil
$0.4143
The following unissued options are subject to approval at the next AGM, expected 24 November 2022.
The value placed on these unissued Director C options is $180,668 and the amount allocated to the share based payments expense in the
statement of profit or loss and other comprehensive income for the year ended 30 June 2022 is $92,303.
Director
Number of Options
Service
Commencement
Date
Expiry Date
Exercise Price
Fair Value at
Grant Date (i)
Neville Gardiner
Total
Robyn Elliott
Total
250,000
250,000
500,000
125,000
125,000
250,000
15‐Nov‐21
15‐Nov‐21
31‐Dec‐24
31‐Dec‐25
15‐Nov‐21
15‐Nov‐21
31‐Dec‐24
31‐Dec‐25
$
1.72
2.29
1.72
2.29
$
101,384
103,563
204,947
50,692
51,781
102,473
The value placed on these unissued Director D options is $183,584 and the amount allocated to the share based payments expense in the
statement of profit or loss and other comprehensive income for the year ended 30 June 2022 is $94,286.
The Company has used the Simple European Call Option Model to value the Director C and Director D options.
Fair Value of Employee Incentive Options ‐ Chief Commercialisation Officer (CCO)
These options were issued on 20 July 2021 pursuant to the terms of an Employee Incentive Options Plan and are issued in
tranches of 100,000 options with differing vesting dates.
The assessed fair value at grant date was determined using a Black‐Scholes Model with the following key inputs:
(i) The fair value of these options is provisional and will be finalised on grant date being the date shareholder approval is obtained.
Particulars
Director C Options exerciseable at $1.72 each (i)
Director D Options exerciseable at $2.29 each (Ii)
Total Unissued options
2022
Options
2021
Options
375,000
375,000
750,000
‐
‐
‐
Unissued options outstanding as at 30 June 2022 have the following expiry date and exercise price.
Valuation Date
Expiry Date
Exercise Price
No. Options
(i)
(ii)
30/06/2022
30/06/2022
31/12/2024
31/12/2025
$1.72
$2.29
375,000
375,000
Number of CCO options
Valuation date
Expiry date
Vesting date
Underlying share price used
Exercise price
Risk‐free rate
Volatility
Dividend yield
Valuation per Option
Tranche 1
100,000
20 July 2021
1 June 2024
1 June 2022
$1.015
$1.44
0.13%
75%
nil
$0.3905
Tranche 2
100,000
20 July 2021
1 June 2024
1 June 2023
$1.015
$1.44
0.13%
75%
nil
$0.3905
Tranche 3
100,000
20 July 2021
1 June 2024
1 June 2024
$1.015
$1.44
0.13%
75%
nil
$0.3905
These CCO options will expire on 1 June 2024 (the expiry date) and, once vested, may be exercised at any time prior to the expiry date.
Options not so exercised shall lapse on the expiry date. Options not so exercised shall lapse on the expiry date. Options will immediately
lapse if employment ceases prior to the vesting date.
The total determined value for these CCO options is $117,142 and the amount allocated to the statement of profit or loss and other
comprehensive income for the year ended 30 June 2022 is $68,228.
36
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Proteomics International Laboratories LtdProteomics International Laboratories Ltd
PILL LOGO
PILL LOGO
Proteomics International Laboratories Ltd
Proteomics International Laboratories Ltd
REMUNERATION REPORT (continued)
Fair Value of Employee Incentive Options ‐ Chief Financial Officer (CFO)
These options were issued on 20 July 2021 pursuant to the terms of an Employee Incentive Options Plan and are
issued in tranches of 50,000 options with differing vesting dates.
The assessed fair value at grant date was determined using a Black‐Scholes Model with the following key inputs:
Particulars
Number of CFO options
Valuation date
Expiry date
Vesting date
Underlying share price used
Exercise price
Risk‐free rate
Volatility
Dividend yield
Valuation per Option
Tranche 1
50,000
20 July 2021
12 July 2024
12 July 2022
$1.015
$1.16
0.13%
75%
nil
$0.4558
Tranche 2
50,000
20 July 2021
12 July 2024
12 July 2023
$1.015
$1.16
0.13%
75%
nil
$0.4558
Tranche 3
50,000
20 July 2021
12 July 2024
12 July 2024
$1.015
$1.16
0.13%
75%
nil
$0.4558
These CFO options will expire on 12 July 2024 (the expiry date) and, once vested, may be exercised at any time prior to the expiry
date. Options not so exercised shall lapse on the expiry date. Options not so exercised shall lapse on the expiry date. Options will
immediately lapse if employment ceases prior to the vesting date.
The total determined value for these CFO options is $68,372 and the amount allocated to the statement of profit or loss and other
comprehensive income for the year ended 30 June 2022 is $39,540.
REMUNERATION REPORT (continued)
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:
Directors and Key Management Personnel
Balance at the
start
Received as part
Shares Received
of the year
of remuneration
on exercise of
options
Balance at the
end
Balance at the
end
Vested
Unvested
2022
Terry Sweet
Richard Lipscombe
Ian Roger Moore
Paul House
Neville Gardiner (i)
Robyn Elliott (i)
Vikesh Malik
Jacqueline Gray
400,000
‐
200,000
200,000
‐
‐
‐
‐
‐
‐
‐
‐
500,000
250,000
100,000
50,000
( 200,000)
‐
( 100,000)
( 100,000)
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
200,000
‐
100,000
100,000
500,000
250,000
100,000
50,000
(i) These unissued options were offered on 15 November 2021 to newly appointed non‐executive directors Dr Elliott and Mr Gardiner
as an effective and efficient method of supplementing non‐executive director's fees. These unissued options are subject to
shareholder approval at the next AGM date, expected to be on 24 November 2022.
F. Additional Information
Rights holding
While earning and share price movements are not linked to remuneration, the performance of the Company over the year ended 30
June 2022 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
The number of rights 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:
Total income
EBITDA and non‐cash
EBIT
(Loss) after tax
G. Additional disclosure relating to key management personnel
Shareholding
2022
$
3,436,458
( 4,041,713)
( 4,970,267)
( 4,972,960)
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:
Directors and Key Management Personnel
2022
Terry Sweet
Richard Lipscombe
Ian Roger Moore
Paul House
Vikesh Malik (i)
Balance at the
start
Received as part
Shares Received Other changes Balance at the
of the year
of remuneration
on exercise of
options
during the year
(i)
end of the
year
2,348,000
19,048,704
717,000
718,864
‐
‐
‐
‐
‐
‐
200,000
‐
100,000
100,000
‐
‐
‐
‐
‐
2,548,000
19,048,704
817,000
818,864
15,270 15,270
(i) Vikesh Malik purchased shares on market during the year
Directors and Key Management Personnel
2022
Vikesh Malik
Jacqueline Gray
Chief Commercialisation Officer (CCO)
Chief Financial Officer (CFO)
Balance at the
start
Received as part
Shares Received
of the year
of remuneration
on exercise of
options
Balance at the
end
Balance at the
end
Vested
Unvested
‐
‐
223,548
73,095
2021
Rights
2022
Rights
223,548
73,095
296,643
‐
‐
‐
‐
‐
‐
‐
223,548
73,095
2022
$
84,851
33,504
118,355
2021
$
‐
‐
‐
38
39
Proteomics International Laboratories LtdProteomics International Laboratories Ltd
Proteomics International Laboratories Ltd
PILL LOGO
SHARES UNDER OPTION
Proteomics International Laboratories Ltd
PILL LOGO
REMUNERATION REPORT (continued)
Class of performance rights
Tranche 1 performance rights
Tranche 2 performance rights
Milestone A performance rights
Milestone B performance rights
Milestone C performance rights
Number issued to
Chief Commercialisation Officer (CCO)
Number issued to
Chief Financial Officer (CFO)
11,774
11,774
50,000
50,000
100,000
223,548
11,521
11,574
‐
‐
50,000
73,095
Tranche 1 performance rights are subject to continuous service under the Employment Contract, and were issued on 20 July 2021 and
vested on 1 July 2022.
Tranche 2 performance rights are subject to continuous service under the Employment Contract, and were issued on 20 July 2021 and will
vest on 1 July 2023.
Milestone A performance rights are subject to the receipt by the Company of payment for a specified number of PromarkerD patient tests
billed in the USA, and were issued on 20 July 2021 and will lapse within 3 years of the commencement of the Employment Contract.
Milestone B performance rights are subject to the receipt by the Company of payment for a specified number of PromarkerD patient tests
billed for any country (excluding the USA), and were issued on 20 July 2021 and will lapse within 3 years of the commencement of the
Employment Contract.
Milestone C performance rights are subject to the Company achieving an annual net profit target set by the Board and independently
verified by the Company's auditors, and were issued on 20 July 2021 and will lapse after 3 full financial years of the commencement of the
Employment Contract.
Each performance right automatically converts into one ordinary share on vesting at an exercise price of nil. The CCO and the CFO (referred
to as the executives) do not receive any dividends and are not entitled to vote in relation to the performance rights during the vesting
period.
If an executive ceases to be employed by the Company within this period, the performance rights issued to that executive will be forfeited.
The fair value of these performance rights at grant date was estimated by taking the market price of the Company's shares on that date less
the present value of expected dividends that will not be received by the executives on their rights during the vesting period. The fair value is
estimated at $301,092 and the amount allocated to the share based payment expense in the statement of profit or loss and other
comprehensive income for the year ended 30 June 2022 is $118,355.
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 2022.
THIS IS THE END OF THE AUDITED REMUNERATION REPORT
Unissued ordinary shares of the Company under option as at 30 June 2022 are as follows:
Date options granted
21/11/2018
27/03/2020
11/05/2020
18/08/2020
28/01/2021
28/01/2021
30/04/2021
20/07/2021
20/07/2021
Expiry date
22/11/2022
27/03/2023
1/05/2023
18/08/2023
28/01/2023
28/01/2023
30/04/2023
1/06/2024
12/07/2024
Exercise price
Number under option
$0.67
$0.50
$0.50
$0.50
$0.75
$0.75
$1.75
$1.44
$1.16
400,000
2,790,279
400,000
1,250,000
1,100,000
1,100,000
500,000
300,000
150,000
7,990,279
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 2022 was 500,000 (year ended 30 June 2021 options converted into
shares was 300,000).
INSURANCE OF OFFICERS
During the year ended 30 June 2022, 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 2022 were in respect to consulting and
amounted to $16,310 (year ended 30 June 2021 the amount was $3,100).
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.
Neville Gardiner
Chairman
Perth, Western Australia
Dated 30th August 2022
40
41
Proteomics International Laboratories LtdProteomics International Laboratories Ltd
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth, WA 6000
PO Box 700 West Perth WA 6872
Australia
Auditor’s Independence Declaration
DECLARATION OF INDEPENDENCE BY ASHLEIGH WOODLEY TO THE DIRECTORS OF PROTEOMICS
INTERNATIONAL LABORATORIES LIMITED
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth, WA 6000
PO Box 700 West Perth WA 6872
Australia
As lead auditor of Proteomics International Laboratories Limited for the year ended 30 June 2022,
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
DECLARATION OF INDEPENDENCE BY ASHLEIGH WOODLEY TO THE DIRECTORS OF PROTEOMICS
INTERNATIONAL LABORATORIES LIMITED
2. No contraventions of any applicable code of professional conduct in relation to the audit.
relation to the audit; and
As lead auditor of Proteomics International Laboratories Limited for the year ended 30 June 2022,
This declaration is in respect of Proteomics International Laboratories Limited and the entities it
I declare that, to the best of my knowledge and belief, there have been:
controlled during the period.
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.
Financial
Statements
Ashleigh Woodley
Director
BDO Audit (WA) Pty Ltd
Perth
Ashleigh Woodley
30 August 2022
Director
BDO Audit (WA) Pty Ltd
Perth
30 August 2022
42
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.
42
42
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.
43
Proteomics International Laboratories LtdProteomics International Laboratories Ltd PILL LOGO
Financial Statements
Proteomics International Laboratories Ltd
Proteomics International Laboratories Ltd
PILL LOGO
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME FOR THE YEAR ENDED 30 JUNE 2022
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2022
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 (gain) in foreign currency translation
Other expenses
Total Expenditure
(Loss) before income tax
Income tax (expense) / benefit
(Loss) after income tax from continuing operations
Consolidated
Entity
2022
$
Consolidated
Entity
2021
$
1,489,323
229,794
5,438
1,711,903
‐
‐
3,436,458
3,847,285
511,693
416,861
151,809
446
2,247
1,806,924
945,477
120,149
99,209
( 760)
508,078
8,409,418
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
( 4,972,960)
( 2,859,663)
‐
‐
( 4,972,960)
( 2,859,663)
Notes
5
2(a)
2(c)
1(g), 14
2(b)
3(a)
Total comprehensive (loss) for the year attributable to equity
holders of Proteomics International Laboratories Ltd
( 4,972,960)
( 2,859,663)
Basic (loss) per share for the year attributable to the members of
Proteomics International Laboratories Ltd
Diluted (loss) per share
25
( 0.05)
N/A
( 0.03)
N/A
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the
accompanying notes.
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
Provisions
TOTAL NON‐CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated (losses)
TOTAL EQUITY
Consolidated
Entity
2022
$
Consolidated
Entity
2021
$
Notes
4
6
7
9
8
10
5
12
11
5
11
13
15
16
2,111,514
440,125
1,810,513
4,362,152
973,391
59,563
‐
1,012
1,033,966
5,396,118
1,148,677
355,977
‐
197,031
1,701,685
133,920
166,671
300,591
2,002,276
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
3,393,842
7,609,422
19,340,914
1,682,998
( 17,630,070)
3,393,842
19,095,227
1,171,305
( 12,657,110)
7,609,422
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
44
45
Proteomics International Laboratories LtdProteomics International Laboratories Ltd
PILL LOGO
PILL LOGO
Proteomics International Laboratories Ltd
Proteomics International Laboratories Ltd
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2022
CONSOLIDATED STATEMENT OF CASH FLOW
FOR THE YEAR ENDED 30 JUNE 2022
CONSOLIDATED ENTITY 30 JUNE 2022
Notes
Issued Capital
Ordinary
$
Reserves
$
(Accumulated
Losses)
$
Total Equity
$
Balance at 1 July 2021
19,095,227
1,171,305
( 12,657,110)
7,609,422
(Loss) for the year
Other comprehensive income for the year
Total comprehensive (loss) for the year
‐
‐
‐
‐
( 4,972,960)
‐ ‐
( 4,972,960)
‐
‐
( 4,972,960)
( 4,972,960)
Transactions with Equity Holders in
their capacity as Equity Holders
Equity issued net of share issue costs
Share based payments expense
13
1(g), 14
245,687
‐
245,687
‐
511,693
511,693
‐
‐
‐
245,687
511,693
757,380
Balance as at 30 June 2022
19,340,914
1,682,998
( 17,630,070)
3,393,842
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)
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
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
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
Repayment of lease liabilities
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
2022
$
Consolidated
Entity
2021
$
Notes
1,691,901
‐
( 6,474,765)
( 2,693)
5,438
1,240,156
( 3,539,963)
‐
( 129,458)
( 129,458)
‐
245,147
( 69,046)
176,101
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
5,604,834
2,365,022
( 3,493,320)
2,111,514
3,239,812
5,604,834
4
12
4
Transactions with Equity Holders in
their capacity as Equity Holders
Equity issues 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
The above Consolidated Statement of Cash Flow should be read in conjunction with the accompanying notes.
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
46
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Proteomics International Laboratories LtdProteomics International Laboratories Ltd
PILL LOGO
PILL LOGO
Proteomics International Laboratories Ltd
Proteomics International Laboratories Ltd
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
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 2022
was authorised for issue in accordance with a resolution of the Directors on the 30th day of August 2022.
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
AASB 8 ‐ Operating Segments, requires a management approach under which segment information is presented on the same basis as that
used for internal reporting purposes. This is consistent to the approach used for the comparative period.
Operating segments are reported in a uniform manner which is internally provided to the chief operating decision maker. The chief operating
decision maker has been identified as the Board of Directors (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.
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.
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 entered into a facility licence agreement with the Harry Perkins Institute on 1 July 2019 for a period of 3 years. This
facility licence agreement ended on 1 July 2022. At the date of this report, a renewal of the facility licence agreement has been
agreed, with the terms and fees to be determined.
Share Based Payments
Equity settled share based payments to employees are measured at the fair value of the equity instruments at the grant date. The fair
value excludes the effect of non‐market based vesting conditions. Details regarding the determination of the fair value of equity
settled share based transactions are set out in the Share Based Payments note.
The fair value determined at the grant date of the equity settled share based payments is expensed on a straight line basis over the
vesting period, based on the Group's estimate of the number of equity instruments expected to vest as a result of the effect of non‐
market based vesting conditions.
(d)
Principles of consolidation
Subsidiaries:
Subsidiaries are all entities (including structured entities) over which the Company has control. The Company controls an entity when it is
exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power
to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Company. They
are deconsolidated from the date that control ceases.
Intercompany Transactions:
Intercompany transactions, balances and unrealised gains on transactions between group companies are eliminated. Unrealised losses are
also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have
been changed where necessary to ensure consistency with the policies adopted by the Company.
48
49
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the year ended 30 June 2022NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the year ended 30 June 2022Proteomics International Laboratories LtdProteomics International Laboratories Ltd PILL LOGO
PILL LOGO
Proteomics International Laboratories Ltd
Proteomics International Laboratories Ltd
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
(e)
Revenue recognition and other income
(g)
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.
Share‐based payments compensation benefits are provided to employees, Directors and consultants via the issues of shares, performance
rights and/or options.
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 2022
amounted to $1,240,156.
(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)
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.
The fair value of the shares, performance rights 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.
(h)
Foreign currency translation and transactions
Both the functional and presentation currency of the Company is in Australian dollars.
Transactions in foreigh surrencies 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.
(i)
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)
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
(ii)
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.
50
51
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the year ended 30 June 2022NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the year ended 30 June 2022Proteomics International Laboratories LtdProteomics International Laboratories Ltd PILL LOGO
PILL LOGO
Proteomics International Laboratories Ltd
Proteomics International Laboratories Ltd
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
(j)
Joint Arrangements
(n)
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.
(k)
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; o
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; o
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.
(l)
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.
(m)
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 on a straight line basis, as appropriate, to write off the net cost of each item of
plant and equipment (excluding land) over their expected useful lives as follows:
Plant and equipment 3‐10 years
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.
(o)
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 financial position.
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.
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.
(p)
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.
52
53
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the year ended 30 June 2022NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the year ended 30 June 2022Proteomics International Laboratories LtdProteomics International Laboratories Ltd PILL LOGO
PILL LOGO
Proteomics International Laboratories Ltd
Proteomics International Laboratories Ltd
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
(q)
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.
(r)
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.
(s)
Issued capital
Ordinary shares are classified as equity.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
(u)
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.
(v)
New Accounting Standards not yet Mandatory
Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2022 reporting
periods and have not been early adopted by the Group. The Group's assessment of the impact of these new standards is that they
are not expected to have a material impact on the Group in the current or future reporting periods
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.
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.
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.
(t)
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.
54
55
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the year ended 30 June 2022NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the year ended 30 June 2022Proteomics International Laboratories LtdProteomics International Laboratories Ltd Proteomics International Laboratories Ltd
Proteomics International Laboratories Ltd
PILL LOGO
PILL LOGO
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
2. LOSS FOR THE YEAR
Loss for the full year included the following:
Notes
Consolidated
Entity
2022
$
Consolidated
Entity
2021
$
(a) Research & Development Tax incentive (i)
1,711,903
1,290,899
(b) Other expenses (income)
Unrealised loss (gain) in foreign currency translation
Realised loss (gain) 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(g), 14
( 59)
( 760)
‐
3,000,272
473,351
297,461
76,201
3,847,285
511,693
4,358,978
‐
23,402
( 6,204)
2,211,096
223,957
205,974
85,701
2,726,728
147,500
2,874,228
(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 2022, 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 2023.
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
(Loss) from continuing operations
Tax at the Australia tax rate 25% (26% for 2021)
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
Consolidated
Entity
2022
$
Consolidated
Entity
2021
$
‐
‐
‐
‐
( 4,972,960)
( 2,859,663)
( 1,243,240)
( 743,512)
127,923
( 427,976)
76,170
1,467,123
‐
38,350
( 335,634)
45,653
995,143
‐
56
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
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 25% (26% for 2021)
Consolidated
Entity
2022
$
Consolidated
Entity
2021
$
5,411,199
1,352,800
3,435,614
893,260
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
9,270
116,723
5,411,199
5,537,192
24,473
85,701
3,435,614
3,545,788
Notes
1,111,514
1,000,000
2,111,514
554,834
5,050,000
5,604,834
Reconciliation of loss after income tax to net cash flows from operating activities
Loss for the year
Non‐cash items:
Depreciation
Unrealised foreign currency loss (gain)
Share based payments expense
Financing Activities:
Share issue in lieu of cash payment
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.
( 4,972,960)
( 2,859,663)
1(g), 14
416,861
( 59)
511,693
‐
‐
( 139,077)
( 438,148)
1,005,526
76,201
( 3,539,963)
372,518
‐
147,500
180,000
( 6,204)
63,538
( 43,930)
( 148,848)
86,016
( 2,209,073)
57
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the year ended 30 June 2022NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the year ended 30 June 2022Proteomics International Laboratories LtdProteomics International Laboratories Ltd
PILL LOGO
Proteomics International Laboratories Ltd
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
5. REVENUE
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
Deferred Revenue (i) (ii)
Current
Non‐Current
Consolidated
Entity
2022
$
‐
1,489,323
1,489,323
Consolidated
Entity
2021
$
‐
1,310,824
1,310,824
‐
1,489,323
1,489,323
‐
1,310,824
1,310,824
1,217,411
155,224
108,469
6,183
2,036
1,489,323
972,653
‐
198,344
105,309
34,518
1,310,824
355,977
133,920
489,897
270,552
99,403
369,955
(i) Deferred Grant Revenue refer Note 1(j)
(ii) Deferred grant revenue in relation to a funding secured to support manufacture of the PromarkerD test in Australia
6. TRADE AND OTHER RECEIVABLES
Trade receivables
less: Expected credit losses (c)
Other receivables ‐ GST Receivable
438,102
‐
2,023
440,125
434,170
( 175,588)
42,466
301,048
(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.
(c)
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 nil at 30 June 2022 ($175,588 as at 30 June 2021).
(d)
Refer to Note 17 for further information on risk exposure.
Proteomics International Laboratories Ltd
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
7. OTHER ASSETS
Current:
Research and development tax incentive (i)
Patent Fee ‐ Advances
Accrued Income
Prepayments (ii)
PILL LOGO
Consolidated
Entity
2022
$
Consolidated
Entity
2021
$
1,711,903
7,860
7,000
83,750
1,810,513
1,290,899
10,585
‐
130,444
1,431,928
(i)
(ii)
refer to Note 2(a) (i)
comprises prepaid insurance and equipment maintenance agreement.
8. RIGHT‐OF‐USE ASSET
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
Plant and Equipment at 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.
191,737
( 191,737)
‐
2,576,492
( 1,603,101)
973,391
1,196,876
129,463
‐
( 352,948)
973,391
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
58
59
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the year ended 30 June 2022NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the year ended 30 June 2022Proteomics International Laboratories LtdProteomics International Laboratories Ltd
PILL LOGO
PILL LOGO
Proteomics International Laboratories Ltd
Proteomics International Laboratories Ltd
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
10. TRADE AND OTHER PAYABLES
Current:
Trade payables
Other payables
Consolidated
Entity
2022
$
Consolidated
Entity
2021
$
517,047
631,630
1,148,677
142,273
121,414
263,687
(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.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
13. ISSUED CAPITAL
Ordinary Shares
Total consolidated issued capital
Movement in share capital
Date
Details
1/07/2021
2/08/2021
4/11/2021
11/02/2022
30/06/2022
Opening balance
Exercise of options (i)
Exercise of options (ii)
Exercise of options (i)
Less: Transaction costs
Closing balance
2022
Shares
2021
Shares
2022
$
2021
$
105,705,875
105,205,875
19,340,914
19,095,277
Number of
shares 2022
Amount
$
105,205,875
50,000
400,000
50,000
105,705,875
19,095,227
25,000
200,000
25,000
( 4,313)
19,340,914
11. PROVISIONS
Current:
Fringe Benefits Tax
Employee benefits ‐ annual leave
Non‐current
Employee benefits ‐ long service leave
12. LEASE LIABILITY
The Company entered into a facility licence agreement with the Harry Perkins Institute of Medical Research, whereby the Company was
granted the right to occupy laboratory and office premises for a period of three years commencing 1 July 2019.
The Company recognised the right to occupy the laboratory and office premises as a lease liability. This facility licence agreement
terminated on 1 July 2022 and, at the date of this report, a renewal of the facility licence agreement had been agreed, with the terms and
fees to be determined.
‐
197,031
197,031
771
174,981
175,752
(i)
Corporate Advisors Alto Capital and Adelaide Equity Partners exercised 100,000 options.
(ii)
Director A options exercised by Terry Sweet, Ian Roger Moore and Paul House.
166,671
111,749
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
Number of
shares 2021
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)
(ii)
Issued following placement to UK and Australian‐based institutions, sophisticated and
professional investors.
Corporate Advisors Alto Capital and Adelaide Equity Partners exercised 150,000 options.
Current:
Lease liability
‐
‐
69,046
69,046
(iii)
Employees exercised 150,000 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.
Upon a poll every holder of ordinary shares present at a meeting in person or by proxy is entitled to one vote, for each share held
Ordinary shares have no par value and the Company does not have a limited amount of authorised capital.
60
61
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the year ended 30 June 2022NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the year ended 30 June 2022Proteomics International Laboratories LtdProteomics International Laboratories Ltd
Proteomics International Laboratories Ltd
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
14. OPTIONS
(a) Options ‐ Issued
Options exercisable at $0.67 each (i)
Options exercisable at $0.50 each (ii)
Options exercisable at $0.50 each (iii)
Options exercisable at $0.50 each (iv)
Options exercisable at $0.75 each (v)
Options exercisable at $0.75 each (vi)
Options exercisable at $1.75 each (vii)
Options exercisable at $1.44 each (viii)
Options exercisable at $1.16 each (ix)
Options exercisable at $0.50 each (x)
Total issued options
Movement in options issued
As at 1 July
Issued during the period
Exercise of options during the period
Exercise of options during the period
Exercise of options during the period
Exercise of options during the period
Issued during the period
Issued during the period
Issued during the period
Issued during the period
Issued during the period
As at 30 June
2022
Options
2021
Options
400,000
2,790,279
400,000
1,250,000
1,100,000
1,100,000
500,000
300,000
150,000
7,990,279
400,000
2,890,279
400,000
1,250,000
1,100,000
1,100,000
500,000
‐
‐
400,000
8,040,279
2022
2021
Average
exercise
price
$0.62
‐
‐
‐
‐
‐
‐
$0.50
$0.50
$1.44
$1.16
$0.66
Number of
Options
8,040,279
‐
‐
( 400,000)
( 100,000)
‐
‐
‐
‐
300,000
150,000
7,990,279
Average
exercise
price
$0.46
$0.50
$0.50
‐
‐
‐
‐
$0.50
$0.75
$0.75
$1.75
$0.62
Number of
Options
4,390,279
1,250,000
( 150,000)
‐
‐
( 150,000)
1,100,000
1,100,000
500,000
‐
‐
8,040,279
Grant Date
21/11/2018 (i)
27/03/2020 (ii)
11/05/2020 (iii)
18/08/2020 (iv)
2/11/2020 (v)
2/11/2020 (vi)
30/04/2021 (vii)
20/07/2021 (viii)
20/07/2021 (ix)
22/11/2022
27/03/2023
1/05/2023
18/08/2023
28/01/2023
28/01/2023
30/04/2023
1/06/2024
12/07/2024
$0.67
$0.50
$0.50
$0.50
$0.75
$0.75
$1.75
$1.44
$1.16
400,000
2,790,279
400,000
1,250,000
1,100,000
1,100,000
500,000
300,000
150,000
(i)
(ii)
(iii)
(iv)
(V)
(Vi)
(Vii)
(Viii)
(ix)
(x)
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 ‐ issued to corporate advisors ‐ Alto Capital and Adelaide Equity Partners for services
Unlisted ‐ employee options issued to employees nil consideration under an Employee
Unlisted ‐ issued to consultant ‐ Candour Advisory Pty Ltd for services provided.
Unlisted ‐ consultant ‐ Euroz Hartleys Securities Limited for services provided.
Unlisted ‐ issued to consultant ‐ Candour Advisory Pty Ltd for services provided.
Unlisted ‐ consultant ‐ Euroz Hartleys Securities Limited for services provided.
Unlisted ‐ issued to key managament personnel (CCO) under Employee Incentive Options Plan.
Unlisted ‐ issued to key managament personnel (CFO) under Employee Incentive Options Plan.
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.
PILL LOGO
Proteomics International Laboratories Ltd
PILL LOGO
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
14. OPTIONS (continued)
(a) Fair Value of Employee Incentive Options ‐ Chief Commercialisation Officer (CCO)
These options were issued on 20 July 2021 pursuant to the terms of an Employee Incentive Oprions Plan and are issued in tranches
of 100,000 options with differing vesting dates.
The assessed fair value at grant date was determined using a Black‐Scholes Model with the following key inputs:
Particulars
Tranche 1
Tranche 2
Tranche 3
Number of CCO options
Valuation date
Expiry date
Vesting date
Underlying share price used
Exercise price
Risk‐free rate
Volatility
Dividend yield
Valuation per Option
100,000
20 July 2021
1 June 2024
1 June 2022
$1.015
$1.44
0.13%
75%
nil
$0.3905
100,000
20 July 2021
1 June 2024
1 June 2023
$1.015
$1.44
0.13%
75%
nil
$0.3905
100,000
20 July 2021
1 June 2024
1 June 2024
$1.015
$1.44
0.13%
75%
nil
$0.3905
These CCO options will expire on 1 June 2024 (the expiry date) and, once vested, may be exercised at any time prior to the expiry
date. Options not so exercised shall lapse on the expiry date.
The total determined value for these CCO options is $117,142 and the amount allocated to the statement of profit or loss and other
comprehensive income for the year ended 30 June 2022 is $68,228. Options not so exercised shall lapse on the expiry date.
Options will immediately lapse if employment ceases prior to the vesting date.
(b) Fair Value of Employee Incentive Options ‐ Chief Financial Officer (CFO)
These options were issued on 20 July 2021 pursuant to the terms of an Employee Incentive Oprions Plan and are issued in tranches
of 50,000 options with differing vesting dates.
The assessed fair value at grant date was determined using a Black‐Scholes Model with the following key inputs:
Number of CFO options
Valuation date
Expiry date
Vesting date
Underlying share price used
Exercise price
Risk‐free rate
Volatility
Dividend yield
Valuation per Option
50,000
20 July 2021
12 July 2024
12 July 2022
$1.015
$1.16
0.13%
75%
nil
$0.4558
50,000
20 July 2021
12 July 2024
12 July 2023
$1.015
$1.16
0.13%
75%
nil
$0.4558
50,000
20 July 2021
12 July 2024
12 July 2024
$1.015
$1.16
0.13%
75%
nil
$0.4558
These CFO options will expire on 12 July 2024 (the expiry date) and, once vested, may be exercised at any time prior to the expiry
date. Options not so exercised shall lapse on the expiry date. Options will immediately lapse if employment ceases prior to the
vesting date.
The total determined value for these CFO options is $68,372 and the amount allocated to the statement of profit or loss and other
comprehensive income for the year ended 30 June 2022 is $39,540.
Issued options outstanding at the end of the year have the following expiry date and exercise price:
Expiry Date
Exercise Price
No. Options
Particulars
Tranche 1
Tranche 2
Tranche 3
62
63
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the year ended 30 June 2022NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the year ended 30 June 2022Proteomics International Laboratories LtdProteomics International Laboratories Ltd
PILL LOGO
PILL LOGO
Proteomics International Laboratories Ltd
Proteomics International Laboratories Ltd
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
(c) Options ‐ Unissued
Director C Options exerciseable at $1.72 each (i)
Director D Options exerciseable at $2.29 each (Ii)
Total Unissued options
2022
Options
2021
Options
375,000
375,000
750,000
‐
‐
‐
Unissued options outstanding as at 30 June 2022 have the following expiry date and exercise price.
Valuation Date
(i) 30/06/2022
(ii) 30/06/2022
Expiry Date
31/12/2024
31/12/2025
Exercise Price
No. Options
$1.72
$2.29
375,000
375,000
Fair Value of Director C and Director D Options.
These unissued options were offered 15 November 2021 to newly appointed non‐executive directors Dr Elliott and Mr Gardiner as an effective and
efficient method of supplementing non‐executive director's fees.
Although these unissued options are subject to shareholder approval at the next AGM date, expected to be on 24 November 2022, they have been
provisionally valued at the grant/valuation date, as follows:
Particulars
Director C
Director D
Number of options
Valuation date
Expiry date
Underlying share price used
Exercise price
Risk‐free rate
Volatility
Dividend yield
Valuation per Option
375,000
30 June 2022
31 December 2024
$0.930
$1.237
3.29%
75%
nil
$0.4055
375,000
30 June 2022
31 December 2025
$0.930
$1.65
3.29%
75%
nil
$0.4143
The value placed on these unissued Director C options is $180,668 and the amount allocated to the share based payments expense in the statement of
profit or loss and other comprehensive income for the year ended 30 June 2022 is $92,303.
The value placed on these unissued Director D options is $183,584 and the amount allocated to the share based payments expense in the statement of
profit or loss and other comprehensive income for the year ended 30 June 2022 is $94,286.
The Company has used the Simple European Call Option Model to value the Director C and Director D options.
(d) Share based payments expense
Share based payments expense comprising:
Consultant options ‐ refer Note 14 (a)
CCO and CFO options ‐ refer note 14 (a)
Director C and Director D options ‐ refer note 14 (b)
CCO and CFO Performance rights ‐ refer note 15
Performance rights to employees ‐ refer note 15
Consolidated
Entity
2022
$
Consolidated
Entity
2021
$
‐
107,769
186,589
118,355
98,980
511,693
147,500
‐
‐
‐
‐
147,500
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
15. RESERVES
Share based payments reserve comprising:
(a) Unlisted Options (i)
Payments to consultants
Employee share scheme
Director A & B
Director C & D
Key management personnel
(b) Unlisted Performance Rights
Key management personnel
Employees
(i) Refer to Note 14 for further information.
Consolidated
Entity
2022
$
Consolidated
Entity
2021
$
783,666
208,577
179,062
186,589
107,769
783,666
208,577
179,062
‐
‐
118,355
98,980
1,682,998
‐
‐
1,171,305
(a) Performance Rights issued to Key Management Personnel
Chief Commercialisation Officer (CCO)
Chief Financial Officer (CFO)
2022
Rights
2021
Rights
2022
$
2021
$
223,548
73,095
296,643
‐
‐
‐
84,851
33,504
118,355
‐
‐
‐
Class of performance rights
Number issued to
Chief Commercialisation Officer (CCO)
Number issued to
Chief Financial Officer (CFO)
Tranche 1 performance rights
Tranche 2 performance rights
Milestone A performance rights
Milestone B performance rights
Milestone C performance rights
11,774
11,774
50,000
50,000
100,000
223,548
11,521
11,574
‐
‐
50,000
73,095
Tranche 1 performance rights are subject to continuous service under the Employment Contract, and were issued on 20 July 2021
and vested on 1 July 2022.
Tranche 2 performance rights are subject to continuous service under the Employment Contract, and were issued on 20 July 2021
and will vest on 1 July 2023.
Milestone A performance rights are subject to the receipt by the Company of payment for a specified number of PromarkerD
patient tests billed in the USA, and were issued on 20 July 2021 and will lapse within 3 years of the commencement of the
Employment Contract.
Milestone B performance rights are subject to the receipt by the Company of payment for a specified number of PromarkerD
patient tests billed for any country (excluding the USA), and were issued on 20 July 2021 and will lapse within 3 years of the
commencement of the Employment Contract.
Milestone C performance rights are subject to the Company achieving an annual net profit target set by the Board and
independently verified by the Company's auditors, and were issued on 20 July 2021 and will lapse after 3 full financial years of the
commencement of the Employment Contract.
64
65
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the year ended 30 June 2022NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the year ended 30 June 2022Proteomics International Laboratories LtdProteomics International Laboratories Ltd
Proteomics International Laboratories Ltd
Proteomics International Laboratories Ltd
PILL LOGO
PILL LOGO
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
15. RESERVES (continued)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
17. FINANCIAL RISK MANAGEMENT
Each performance right automatically converts into one ordinary share on vesting at an exercise price of nil. The CCO and the
CFO (referred to as the executives) do not receive any dividends and are not entitled to vote in relation to the performance
rights during the vesting period.
If an executive ceases to be employed by the Company within this period, the performance rights issued to that executive will be
forfeited.
The fair value of these performance rights at grant date was estimated by taking the market price of the Company's shares on
that date less the present value of expected dividends that will not be received by the executives on their rights during the
vesting period. The fair value is estimated at $301,092 and the emount allocated to the share based payment expense in the
statement of profit or loss and other comprehensive income for the year ended 30 June 2022 is $118,355.
(b) Performance Rights issued to Employees
Employees
Class of performance rights
Number issued
Class A performance rights
Class B performance rights
Class C performance rights
47,778
47,778
47,778
143,334
2022
Rights
143,334
2021
Rights
‐
2022
$
98,980
2021
$
‐
Class A performance rights are subject to continuous service under the Employment Contract, and were issued on 13 December
2021 and vested on 30 June 2022.
Class B performance rights are subject to continuous service under the Employment Contract, and were issued on 13 December
2021 and will vest on 30 June 2023.
Class C performance rights are subject to continuous service under the Employment Contract, and were issued on 13 December
2021 and will vest on 30 June 2024.
The fair value of these performance rights is $161,967 and the emount allocated to the share based payment expense in the
statement of profit or loss and other comprehensive income for the year ended 30 June 2022 is $98,980.
16. ACCUMULATED LOSSES
Opening balance
Reclassification of option reserve
Loss for the year
Closing balance
Consolidated
Entity
2022
$
Consolidated
Entity
2021
$
( 12,657,110)
‐
( 4,972,960)
( 10,007,742)
210,295
( 2,859,663)
( 17,630,070)
( 12,657,110)
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)
Research & Development tax incentive (b)
Financial liabilities
Trade and other payables (c)
Borrowings and lease liabilities
Consolidated
Entity
2022
$
Consolidated
Entity
2021
$
2,111,514
440,125
1,711,903
4,263,542
5,604,834
258,582
1,290,899
7,154,315
( 1,638,574)
‐
( 1,638,574)
( 221,866)
( 69,046)
( 290,912)
(a) excludes GST receivables and prepayments.
(b) the receipt of the Research & Development tax incentive will occur in the year ending 30 June 2023.
(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.
66
67
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the year ended 30 June 2022NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the year ended 30 June 2022Proteomics International Laboratories LtdProteomics International Laboratories Ltd
Proteomics International Laboratories Ltd
PILL LOGO
PILL LOGO
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
17. FINANCIAL RISK MANAGEMENT (continued)
The following sets out the Company's exposure to interest rate risk, including the effective weighted average interest rate by
maturity periods.
Details
Note
Weighted Average
Interest Rate
Total
$
30 June 2022 Consolidated
Financial assets
Cash and cash equivalents
30 June 2021 Consolidated
Financial assets
Cash and cash equivalents
0.26%
4,263,542
2.59%
7,196,781
Proteomics International Laboratories Ltd
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
17. FINANCIAL RISK MANAGEMENT (continued)
Financial assets
Cash and cash equivalents
Trade and Other Receivables
Research and development tax incentive
The Company's financier has an AA Moody's rating.
(c) Liquidity Risk
Consolidated
Entity
2022
$
Consolidated
Entity
2021
$
2,111,514
440,125
1,711,903
4,263,542
5,604,834
301,048
1,290,899
7,196,781
All other financial instruments have either a zero coupon rate or a fixed interest rate.
Prudent liquidity risk management implies maintaining sufficient cash balances and access to equity funding.
Sensitivity
At 30 June 2022, 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 $4,426 lower / ($4,426) higher, mainly as a result of higher / lower
interest income from cash and cash equivalents (2021 changes of 0.25% / 0.25%: $2,545 lower/ ($2,545) higher).
(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
30 June 2022
30 June 2021
USD
JPY
USD
JPY
Trade receivables
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:
255,974
6,563
0
‐
USD/AUD exchange rate ‐ increase 5%
USD/AUD exchange rate ‐ decrease 15%
Impact on post tax profits
2022
2021
$
$
( 16,305)
60,475
( 433)
1,601
Impact on equity
2022
$
433
( 1,601)
2021
$
16,305
( 60,475)
(b) Credit risk
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.
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 2022
Non‐derivatives
Non‐interest bearing
Trade payables
Other payables
Interest bearing
Lease Liability
Total non‐derivative
Contractual
maturities
of financial
As at 30 June 2021
Non‐derivatives
Non‐interest bearing
Trade payables
Interest bearing
Lease Liability
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
$
517,047
1,121,527
‐
1,638,574
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
517,047
1,121,527
517,047
1,121,527
‐
‐
1,638,574
1,638,574
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
68
69
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the year ended 30 June 2022NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the year ended 30 June 2022Proteomics International Laboratories LtdProteomics International Laboratories Ltd
PILL LOGO
PILL LOGO
Proteomics International Laboratories Ltd
Proteomics International Laboratories Ltd
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
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 as 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.
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 2022.
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)
OxiDX Pty Ltd (ii)
Legal Parent
Proteomics International
Laboratories Ltd
Class of
share
Country of
Incorporation
Equity Holding
2022
2021
%
%
Australia
Australia
Australia
100
‐
66
100
100
‐
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
19. REMUNERATION OF AUDITORS
(a) Audit services
‐ BDO Audit (WA) Pty Ltd
(b) Non‐audit services
‐ BDO Corporate Finance
‐ BDO Corporate Tax (WA) Pty Ltd (i)
(i) Consulting services have been provided by BDO.
20. COMMITMENTS
Consolidated
Entity
2022
$
Consolidated
Entity
2021
$
50,799
48,535
‐
16,310
‐
3,100
The Company pays fees to access strategic locations to use laboratories and specialised equipment to undertake its operations. This
facility licence agreement terminated on 1 July 2022, and, as at the date of this report, a new facility licence agreement had not
been entered into. [See Note 12]
21. RELATED PARTIES
(a) Directors and Key Management Personnel remuneration
Short‐term employee benefits
Post‐employment benefits
The following comprise the key management personnel of the Company:
(i) Managing Director
(ii) Chief Commercialisation Officer
(iii) Chief Financial Officer
(b) Transactions with Key Management Personnel
1,319,965
78,851
1,398,816
390,000
58,901
448,901
Ordinary
Australia
‐
‐
There were no consultancy services provided by key management personnel during the year ended 30 June 2022.
(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.
(ii) During the year ended 30 June 2022 the company transferred its share in Two Tag in exchange for 66% of the issued capital of
OxiDx Pty Ltd.
No loans were provided by Key Management Personnel during the year ended 30 June 2022.
70
71
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the year ended 30 June 2022NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the year ended 30 June 2022Proteomics International Laboratories LtdProteomics International Laboratories Ltd
PILL LOGO
PILL LOGO
Proteomics International Laboratories Ltd
Proteomics International Laboratories Ltd
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
22. DIVIDENDS
The directors have not paid or declared a dividend during the financial years ended 30 June 2022 and 30 June 2021.
23. CONTINGENT LIABILITIES
The Company is not aware of any material contingent liabilities for the years ended 30 June 2022 and 30 June 2021.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
26. EVENTS OCCURRING AFTER THE REPORTING PERIOD (continued)
On 29 August 2022, Proteomics International announced the spin‐off of OxiDx Pty Ltd, an independent business to commercialise
technology for measuring oxidative stress developed in collaboration with The University of Western Australia.
No other matters or circumstances have arisen since the end of the financial year that have significantly affected, or may
significantly affect the consolidated entity's operations, or the consolidated entity's state of affairs in future years.
24. SEGMENT REPORTING
27 PARENT ENTITY INFORMATION
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 following information relates to the legal parent entity, Proteomics International Laboratories Ltd, as at 30 June 2022. The information
presented here has been prepared using consistent accounting policies as presented in Note 1.
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
Consolidated
Entity
2022
$
Consolidated
Entity
2021
$
( 4,972,960)
( 2,859,663)
Weighted average number of ordinary shares*
105,531,217
101,703,361
Loss per share
( $0.05)
( $0.03)
*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 25 July 2022, Proteomics International announced that its European patent protection for the Company's PromarkerD
predictive test had been expanded to include diagnosing all individuals who are prediabetic and asymptomatic for kidney
disease.
Current assets
Non‐current assets
Total Assets
Current liabilities
Non‐current liabilities
Total Liabilities
Equiy
Share Capital
Reserve
Accumulated Losses
Total Equity*
(Loss) for the year
Other comprehensive income / (loss) for the year
Total comprehensive (loss) for the year
*Net assets are higher than the group due to investment in subsidiary
Contingent liabilities of the parent entity
The Company is not aware of any material contingent liabilities for the year ended 30 June 2022.
2022
$
1,170,154
5,250,000
6,420,154
148,095
‐
148,095
2021
$
5,216,361
5,250,000
10,466,361
78,978
‐
78,978
13,198,465
1,682,998
( 8,609,404)
12,970,747
1,171,305
( 3,754,669)
6,272,059
10,387,383
( 4,854,735)
( 1,118,039)
‐
‐
( 4,854,735)
( 1,118,039)
On 1 August 2022, Proteomics International announced that an early version of the Company’s potential world‐first blood test
for endometriosis had successfully detected up to 78 per cent of people with the painful condition.
Commitments of the parent entity
On 2 August 2022, Proteomics International announced that a study demonstrating the clinical utility of the PromarkerD test in
predicting diabetic kidney disease was published in the journal PLOS ONE (a peer‐reviewed, open access journal published by
the Public Library of Science (PLOS)).
On 9 August 2022, Proteomics International announced that it had signed a binding and exclusive letter of intent (LOI) with
Sonic Healthcare USA, Inc. (a division of Sonic Healthcare Limited; ASX: SHL) regarding entering into an exclusive licence for use
of the Company's PromarkerD test for diabetic kidney disease in the United States.
On 15 August 2022, Proteomics International announced that it had received firm commitments for a share placement to raise
$8 million (before costs) through the issue of 9.41 million shares in the Company ("the Placement"). The Placement was heavily
oversubscribed, supported by Australian‐based institutions, and sophisticated and professional investors and completed on 22
August 2022.
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.
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73
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the year ended 30 June 2022NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the year ended 30 June 2022Proteomics International Laboratories LtdProteomics International Laboratories Ltd
Proteomics International Laboratories Ltd
Directors’ Declaration
Directors' Declaration
The Directors of the Company declare that:
PILL LOGO
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 2022 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
2022 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:
Neville Gardiner
Chairman
Perth, Western Australia
Dated:
30 August 2022
74
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth, WA 6000
PO Box 700 West Perth WA 6872
Australia
Independent Auditor’s Report
INDEPENDENT AUDITOR'S REPORT
To the members of Proteomics International Laboratories Limited
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
Report on the Audit of the Financial Report
INDEPENDENT AUDITOR'S REPORT
Opinion
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth, WA 6000
PO Box 700 West Perth WA 6872
Australia
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
To the members of Proteomics International Laboratories Limited
30 June 2022, 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
Report on the Audit of the Financial Report
and the directors’ declaration.
Opinion
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
We have audited the financial report of Proteomics International Laboratories Limited (the Company)
Act 2001, including:
and its subsidiaries (the Group), which comprises the consolidated statement of financial position as at
Giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its
(i)
30 June 2022, the consolidated statement of profit or loss and other comprehensive income, the
financial performance for the year ended on that date; and
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
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
(ii)
and the directors’ declaration.
Basis for opinion
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
Act 2001, including:
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
(i)
Giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its
Report section of our report. We are independent of the Group in accordance with the Corporations
financial performance for the year ended on that date; and
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)
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
(ii)
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
Basis for opinion
ethical responsibilities in accordance with the Code.
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
We confirm that the independence declaration required by the Corporations Act 2001, which has been
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
given to the directors of the Company, would be in the same terms if given to the directors as at the
Report section of our report. We are independent of the Group in accordance with the Corporations
time of this auditor’s report.
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
for our opinion.
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.
Key audit matters
We confirm that the independence declaration required by the Corporations Act 2001, which has been
Key audit matters are those matters that, in our professional judgement, were of most significance in
given to the directors of the Company, would be in the same terms if given to the directors as at the
our audit of the financial report of the current period. These matters were addressed in the context of
time of this auditor’s report.
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.
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.
75
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.
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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Proteomics International Laboratories LtdProteomics International Laboratories Ltd Independent Auditor’s Report
Independent Auditor’s Report
Accounting for Share based payments
Auditor’s responsibilities for the audit of the Financial Report
Key audit matter
How the matter was addressed in our audit
During the financial year ended 30 June 2022,
the Group issued options and performance
rights to key management personnel and
employees.
These instruments constitute share based
payments in accordance with AASB 2 Share
based payments.
Refer to note 1(g), Note 14 and Note 15 of the
financial report for a description of the
accounting policy and key assumptions and
inputs applied to determine the valuation of
these options and performance rights.
Due to the complex and judgmental estimates
used in determining 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 relevant agreements/ASX announcements
to obtain an understanding of the contractual nature and
terms and conditions of the share-based payment
arrangements.
Assessing the assumptions and model 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
share price of the underlying equity and volatility;
Considering the vesting conditions of the options and
performance rights; 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 2022 but does not include the
financial report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
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 40 of the directors’ report for the
year ended 30 June 2022.
In our opinion, the Remuneration Report of Proteomics International Laboratories Limited, for the year
ended 30 June 2022, 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
Ashleigh Woodley
Director
Perth
30 August 2022
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77
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Proteomics International Laboratories LtdProteomics International Laboratories Ltd Shareholder Information
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Proteomics International Laboratories Ltd SHAREHOLDER INFORMATION Details of securities as at 22 August 2022: Capital structure Securities Number Fully paid ordinary shares 114,894,595 Director B Options exercisable at $0.67 each and expiring on 22 November 2022 400,000 Placement Corporate Advisory Options exercisable at $0.75 each and expiring on 28 January 2023 2,200,000 Placement Corporate Advisory Options exercisable at $0.50 each and expiring on 27 March 2023 2,790,279 Consultant Corporate Advisory Options exercisable at $1.75 each and expiring on 30 April2023 500,000 Employee Options exercisable at $0.50 each and expiring on 1 May 2023 400,000 Consultant Corporate Advisory Options exercisable at $0.50 each and expiring on 18 August 2023 1,250,000 Employee Options exercisable at $1.44 each and expiring on 1 June 2024 300,000 Employee Options exercisable at $1.16 each and expiring on 12 July 2024 150,000 Performance rights subject to vesting conditions and expiring on 31 July 2023 47,778 Performance rights subject to vesting conditions and expiring on 1 June 2024 111,774 Performance rights subject to vesting conditions and expiring on 12 July 2024 11,574 Performance rights subject to vesting conditions and expiring on 31 July 2024 47,778 Performance rights subject to vesting conditions and expiring on 30 September 2024 150,000 Top holders The 20 largest registered holders of fully paid ordinary shares were: Fully paid ordinary shares Name Number % 1. RICHARD LIPSCOMBE 19,048,704 16.58% 2. MR JOHN SUTHERLAND RICHARDSON DUNLOP 3,855,188 3.36% 3. SPARROW HOLDINGS PTY LTD 2,335,500 2.03% 4. HIMSTEDT & CO PTY LTD 2,076,471 1.81% 5. RANDOLPH RESOURCES PTY LIMITED 1,949,000 1.70% 6. NATIONAL NOMINEES LIMITED 1,794,870 1.56% 7. ALTOR CAPITAL MANAGEMENT PTY LTD 1,610,000 1.40% 8. XYLO PTY LTD 1,503,700 1.31% 9. UBS NOMINEES PTY LTD 1,391,177 1.21% 10. SLADE TECHNOLOGIES PTY LTD 1,140,000 0.99% 11. J P MORGAN NOMINEES AUSTRALIA PTY LIMITED 1,128,493 0.98% 12. MRS LISA FLOAN 1,125,000 0.98% 13. MR KONRAD FLOAN 1,120,000 0.97% 14. MCCUSKER HOLDINGS PTY LTD 1,000,000 0.87% 15. MR DIRK CHARLES HAWKER VAN DISSEL 989,000 0.86% 16. BOND STREET CUSTODIANS LIMITED 911,765 0.79% 17. BFM SUPERANNUATION FUND PTY LTD 800,000 0.70% 18. MOORE & SOTOMI INVESTMENTS PTY LTD 717,000 0.62% 19. JETAN PTY LTD 700,000 0.61% 20. CAMBERWELL GYNAECOLOGY CLINIC PTY LTD 649,400 0.57% 45,845,268 39.90% Proteomics International Laboratories LtdProteomics International Laboratories Ltd Shareholder Information
Shareholder Information
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Proteomics International Laboratories Ltd T1 Placement Corporate Advisory Options The holders of the T1 Placement Corporate Advisory Options were as follows: Name Number % 1. BIG OAT PTY LTD 716,112 25.66% 2. MRS ANNA FELICIA BELTON 500,000 17.92% 3. ALASTAIR ANDREW MURRAY 358,055 12.83% 4. MR ANTHONY JOHN LOCANTRO 250,000 8.96% 5. ARUMA ENTERPRISES PTY LTD 245,000 8.78% 6. GREENSEA INVESTMENTS PTY LTD 150,000 5.38% 7. MR CARRICK DURRANT RYAN 100,000 3.58% 8. RAFTUS INVESTMENTS PTY LTD 100,000 3.58% 9. ROBERT LAURENCE BOORMAN & LAURA LEE BOORMAN 98,112 3.52% 10. MR KYLE IAN JOSEPH MOSS 57,000 2.04% 11. CHELSEA INVESTMENTS (WA) PTY LTD 50,000 1.79% 12. ACNS CAPITAL MARKETS PTY LTD 50,000 1.79% 13. DRP 2006 SUPER PTY LTD 50,000 1.79% 14. WEST KEY PTY LTD 50,000 1.79% 15. MR SETH ANDRE LIZEE 16,000 0.57% 2,790,279 100.00% T2 Placement Corporate Advisory Options The holders of the T2 Placement Corporate Advisory Options were as follows: Name Number % 1. ZERO NOMINEES PTY LTD 1,100,000 50.00% 2. DIRK CHARLES HAWKER VAN DISSEL 825,000 37.50% 3. PANDT (SA) PTY LTD 150,000 6.82% 4. MR JOHN CHARLES LLOYD BOWERS 125,000 5.68% 2,200,000 100.00% T1 Consultant Corporate Advisory Options The holders of the T1 Consultant Corporate Advisory Options were as follows: Name Number % 1. DIRK CHARLES HAWKER VAN DISSEL 856,250 68.50% 2. ALASTAIR ANDREW MURRAY 231,250 18.50% 3. MR JOHN CHARLES LLOYD BOWERS 125,000 10.00% 4. PANDT (SA) PTY LTD 37,500 3.00% 1,250,000 100.00% T2 Consultant Corporate Advisory Options The holder of the T2 Consultant Corporate Advisory Options was Zero Nominees Pty Ltd. Performance rights Expiry Number of Number of Class Date Rights holders Performance rights 31 July 2023 47,778 22 Performance rights 1 June 2024 111,774 1 Performance rights 12 July 2024 11,574 1 Performance rights 31 July 2024 47,778 22 Performance rights 30 September 2024 150,000 2 The Performance Rights are subject to vesting conditions and were issued under the Proteomics Performance Rights Plan. Voting Rights Proteomics International Laboratories Ltd Distribution schedule A distribution schedule of each class of equity security Fully paid ordinary shares Range Holders Units % 1 - 1,000 339 168,776 0.15% 1,001 - 5,000 544 1,598,621 1.39% 5,001 - 10,000 371 3,087,006 2.69% 10,001 - 100,000 832 27,430,158 23.87% 100,001 - Over 181 82,610,034 71.90% Total 2267 114,894,595 100.00% Substantial shareholders The names of substantial shareholders and the number of shares to which each substantial shareholder and their associates have a relevant interest, as disclosed in substantial shareholding notices given to the Company, are set out below: Substantial shareholder Number of Shares Richard John Lipscombe and associated entities 19,048,704 Unmarketable parcels Holdings less than a marketable parcel of ordinary shares (being 549 as at 22 August 2022): Holders Units 174 29,793 Unquoted securities Unquoted securities on issue were: Options Expiry Exercise Number of Number of Class Date Price $ Options holders Director B Options 22 November 2022 0.67 400,000 3 T2 Placement Corporate Advisory Options 28 January 2023 0.75 2,200,000 4 T1 Placement Corporate Advisory Options 27 March 2023 0.50 2,790,279 15 T2 Consultant Corporate Advisory Options 30 April 2023 1.75 500,000 1 Employee Options 1 May 2023 0.50 400,000 5 T1 Consultant Corporate Advisory Options 18 August 2023 0.50 1,250,000 4 Employee Options 1 June 2024 1.44 300,000 1 Employee Options 12 July 2024 1.16 150,000 1 The holders of the Director Options are disclosed in the Directors’ Report. The Employee Options were issued under the Proteomics Employee Incentive Option Plan. Proteomics International Laboratories LtdProteomics International Laboratories Ltd Shareholder Information
Glossary
Biologics
Biomarker
Biosimilars
Medicinal protein products manufactured in or extracted from biological sources
e.g. immunotherapies for cancer.
A measurable indicator of a state or condition, usually relating to early phase of
diseases; a biological signature.
Protein-based molecules that are biological medical products made to mimic an
original “Biologic” drug.
Complementary diagnostic
(CDx)
A complementary diagnostic is a test that aids in the benefit-risk decision making
about the use of the therapeutic product for a given patient, where the difference
in benefit-risk is clinically meaningful.
Diabetes
A group of metabolic diseases associated with high blood sugar levels.
Diabetic kidney disease
(nephropathy)
A progressive disease of the kidneys caused by diabetes and leading to the
malfunction of the kidneys and ultimately renal failure.
eGFR
End stage renal disease
(ESRD)
Immunoassay
ISO 13485 certification
Key Opinion Leader
Mass Spectrometry
Odds Ratio (OR)
The estimated Glomerular Filtration rate (eGFR) is a blood test used for the
diagnosis of chronic kidney disease.
Kidney failure or ESRD is the final stage of kidney disease. Kidney failure means
the use of dialysis or transplantation is required for survival. Diabetes is the
most common cause of ESRD.
A procedure for detecting or measuring specific proteins or other substances
through the use of antibodies.
A certification granted to organisations involved in the manufacturing of
medical devices that follow the internationally agreed standards of a quality
management system.
Individuals or organisations with a respected social status, allowing their opinions
to have sway in making important decisions.
The measurement of the mass to charge ratio of a molecule such as a peptide in
order to determine its chemical structure.
A measure of association between two events. It can be used to determine
whether a particular exposure is a risk factor for a particular outcome. In clinical
research it gives direct information to doctors about which treatment approach
has the best odds of benefiting the patient.
Oesophageal cancer
A cancer of the tube that runs from the throat to the stomach.
Oxidative Stress
Probability (P)
Prognostic
Proteomics
An imbalance between reactive oxygen species and your body’s ability to
eliminate them or repair the resulting damage.
The P value, or calculated probability, that an observation is true. Most authors
refer to statistically significant as P < 0.05 and statistically highly significant as
P < 0.001 (less than one in a thousand chance of being wrong).
A term for predicting the likely or expected development of a disease.
The large-scale study of protein structure and function.
Recombinant antibodies
Antibodies developed using synthetic genes.
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Proteomics International Laboratories Ltd The voting rights attaching to ordinary shares are: 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. Options and performance rights do not carry any voting rights. On-Market Buy Back There is no current on-market buy-back. Proteomics International Laboratories Ltd T1 Placement Corporate Advisory Options The holders of the T1 Placement Corporate Advisory Options were as follows: Name Number % 1. BIG OAT PTY LTD 716,112 25.66% 2. MRS ANNA FELICIA BELTON 500,000 17.92% 3. ALASTAIR ANDREW MURRAY 358,055 12.83% 4. MR ANTHONY JOHN LOCANTRO 250,000 8.96% 5. ARUMA ENTERPRISES PTY LTD 245,000 8.78% 6. GREENSEA INVESTMENTS PTY LTD 150,000 5.38% 7. MR CARRICK DURRANT RYAN 100,000 3.58% 8. RAFTUS INVESTMENTS PTY LTD 100,000 3.58% 9. ROBERT LAURENCE BOORMAN & LAURA LEE BOORMAN 98,112 3.52% 10. MR KYLE IAN JOSEPH MOSS 57,000 2.04% 11. CHELSEA INVESTMENTS (WA) PTY LTD 50,000 1.79% 12. ACNS CAPITAL MARKETS PTY LTD 50,000 1.79% 13. DRP 2006 SUPER PTY LTD 50,000 1.79% 14. WEST KEY PTY LTD 50,000 1.79% 15. MR SETH ANDRE LIZEE 16,000 0.57% 2,790,279 100.00% T2 Placement Corporate Advisory Options The holders of the T2 Placement Corporate Advisory Options were as follows: Name Number % 1. ZERO NOMINEES PTY LTD 1,100,000 50.00% 2. DIRK CHARLES HAWKER VAN DISSEL 825,000 37.50% 3. PANDT (SA) PTY LTD 150,000 6.82% 4. MR JOHN CHARLES LLOYD BOWERS 125,000 5.68% 2,200,000 100.00% T1 Consultant Corporate Advisory Options The holders of the T1 Consultant Corporate Advisory Options were as follows: Name Number % 1. DIRK CHARLES HAWKER VAN DISSEL 856,250 68.50% 2. ALASTAIR ANDREW MURRAY 231,250 18.50% 3. MR JOHN CHARLES LLOYD BOWERS 125,000 10.00% 4. PANDT (SA) PTY LTD 37,500 3.00% 1,250,000 100.00% T2 Consultant Corporate Advisory Options The holder of the T2 Consultant Corporate Advisory Options was Zero Nominees Pty Ltd. Performance rights Expiry Number of Number of Class Date Rights holders Performance rights 31 July 2023 47,778 22 Performance rights 1 June 2024 111,774 1 Performance rights 12 July 2024 11,574 1 Performance rights 31 July 2024 47,778 22 Performance rights 30 September 2024 150,000 2 The Performance Rights are subject to vesting conditions and were issued under the Proteomics Performance Rights Plan. Voting Rights Proteomics International Laboratories LtdProteomics International Laboratories Ltd Why are proteins important?
Genomes are static - the
genes we are born with are
the genes we die with, but
the protein make up in our
bodies differs from cell to cell
and changes considerably over
time. Cells use the instructions
in our genes to make proteins.
Proteins are the operational molecules of life and carry out the
functions of living organisms.
The caterpillar and the butterfly have exactly the same genome.
The proteins that their cells make are why they are different.
Looking at the differences in protein composition can tell us about
the state of life, and health, of any organism.
Proteomics is the study of proteins on an industrial scale.
Corporate Directory
Directors
Auditors
Mr Neville Gardiner - Non-Executive Chairman
BDO Audit (WA) Pty Ltd
Dr Richard Lipscombe - Managing Director
Dr Robyn Elliott – Non-Executive Director
Mr Paul House - Non-Executive Director
Mr Roger Moore - Non-Executive Director
Company Secretary
Ms Karen Logan
Principal Place of Business
QEII Medical Centre, QQ Block
6 Verdun Street
Nedlands WA 6009
T: +61 8 9389 1992
E: enquiries@proteomicsinternational.com
W: www.proteomicsinternational.com
Registered Office
Suite 13, The Atrium
123A Colin Street
West Perth WA 6005
38 Station Street
Subiaco, WA 6008
Accountants
S Pugliese
Suite 13, Level 1
123A Colin Street
West Perth, WA 6005
Share Registry
Automic Group
PO Box 5193
Sydney NSW 2001
T: 1300 288 664
E: hello@automic.com.au
W: automicgroup.com.au
Stock Exchange
ASX
Level 40, Central Park
152-158 St George’s Terrace
Perth WA 6000
ASX Code: PIQ
Investor Relations
Candour Advisory
Dirk Van Dissel
T: +61 408 326 367
E: dirk@candouradvisory.com.au
Corporate Advisor
Euroz Hartleys Limited
Level 18 Alluvion
58 Mounts Bay Road
Perth WA 6000
T: +61 8 9488 1400
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www.proteomicsinternational.com
Proteomics International Laboratories LtdProteomics International Laboratories Ltd