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Proteomics International
L A B O R AT O R I E S LT D
Annual
Report
2023
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3ACN 169 979 971
ASX: PIQ
Proteomics International
I D E N T I T Y
Proteomics International is a medical technology company
specialising in predictive diagnostics and advanced
analytical services using proteomics - the industrial scale
study of the structure and function of proteins.
M I S S I O N
To improve the quality of lives by the creation and
application of innovative tools that enable the improved
treatment of disease.
V I S I O N
To help create a world where disease is detected early
and cured simply.
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Proteomics International Laboratories Ltd
Proteomics International Laboratories Ltd
Contents
FROM THE CHAIR
KEY ACHIEVEMENTS
WINDOW ON THE SCIENCE – Diagnosing Endometriosis
TECHNOLOGY SNAPSHOT I – PromarkerD and Drug Therapies for Diabetic Kidney Disease
TECHNOLOGY SNAPSHOT II – Next Generation Diagnostics - OxiDx P/L
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
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Proteomics International Laboratories Ltd
Proteomics International Laboratories Ltd
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From the Chair
Dear Shareholder,
I am pleased to present Proteomics International’s annual report on behalf of the Board, featuring key
activities and achievements for the year ended 30 June 2023.
It has been a pivotal year for the Company, with the signing of a landmark deal to bring our PromarkerD test
for diabetic kidney disease to patients in the United States.
This significant agreement marks Proteomics International’s transition from a research and development
company to full commercialisation.
Other key milestones in the rollout of PromarkerD include the granting of a CPT PLA reimbursement code in
the United States, publication of a Medtech Innovation Briefing in the United Kingdom, and research further
demonstrating the clinical utility of the test.
At the same time, Proteomics International is continuing to harness our PromarkerTM technology to develop
new diagnostic tests in areas of unmet medical need.
Particularly exciting is the Company’s novel test for endometriosis, which this year was shown to correctly
identify up to 90 per cent of patients with moderate or severe endometriosis, compared to symptomatic
controls.
The Company’s work in oesophageal cancer is also showing great promise, with a prototype diagnostic test
for oesophageal adenocarcinoma detecting up to 90 per cent of people with the condition.
We believe successfully validated blood tests for either endometriosis or oesophageal cancer will garner
significant interest, both commercially and in the clinic.
I continue to be impressed by the drive, commitment and professionalism of the Proteomics International
team as they seek to improve the lives of patients around the world and create value for our shareholders.
I would like to recognise my fellow directors on the Board, Managing Director Dr Richard Lipscombe, the
entire Proteomics International team and our advisors for their dedication to the success of the Company.
Finally, I would like to thank you, our valued shareholders, for your continued support and investment.
Yours sincerely,
Neville Gardiner
Chair, Proteomics International
Key Achievements
PromarkerD
• Exclusive licence agreement to take PromarkerD to the
US market
Proteomics International and Sonic Healthcare USA signed a
deal to bring the PromarkerD predictive test for diabetic
kidney disease to the United States
• Drug Treatment lowers PromarkerD diabetic kidney
disease risk prediction scores
Research published in international peer-reviewed Journal
of Clinical Medicine (See Technology Snapshot)
• Reimbursement code approved and becomes effective
for PromarkerD in the United States
CPT PLA code is key to PromarkerD being covered by both
Medicare and private health insurers in the US
• First sales commenced
PromarkerD first sales were achieved in Central America
• UK's National Institute for Health and Care Excellence
(NICE) published Medtech Innovation Briefing on
PromarkerD
Advice for clinicians reported that PromarkerD is effective at
predicting renal function decline in people with type 2
diabetes
• Clinical utility study showed PromarkerD test offers
improved treatment options for doctors in the fight
against diabetic kidney disease
Results published in peer-reviewed journal PLOS ONE
• Clinical Advisory Board expanded to support PromarkerD
USA and global rollout
New members are highly respected healthcare professionals
and key opinion leaders (KOLs) specialising in primary care
diabetes education and management
• Intellectual property portfolio expands
Patent family and Trademark covers 72% of the world’s
population living with diabetes
Diagnostics pipeline
• Precision diagnostics facility received $2 million
funding boost
Expansion of the Company’s capabilities as part of the WA
Proteomics Facility to accelerate the development of
precision diagnostic tests
ENDOMETRIOSIS
• Potential breakthrough blood test able to detect people
with endometriosis
Results showing prototype test correctly identifies up to
90 per cent of patients with the disease presented at world
conferences on fertility and endometriosis (See Window on
the Science)
OESOPHAGEAL ADENOCARCINOMA
• New PromarkerTM test for oesophageal cancer
demonstrated strong diagnostic performance
Prototype diagnostic blood test for oesophageal
adenocarcinoma detected up to 90 per cent of people with
the frequently-fatal condition
OXIDATIVE STRESS
• OxiDx Pty Ltd launched to maximise oxidative stress
technology
Independent spin-off business to commercialise technology
for measuring oxidative stress
Analytical services
• Renewal of ISO 13485 certification and ISO 17025 accreditation
World’s best practice laboratory standards to benefit launch of PromarkerD, analytical services and pipeline of novel diagnostics
Corporate
• $8m raised in heavily oversubscribed placement
Successful placement supported by Australian institutions, and sophisticated and professional investors
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Window on the science
Proteomics International Laboratories Ltd
Proteomics International Laboratories Ltd
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Diagnosing Endometriosis
Endometriosis is a common and painful disease affecting up to
1 in 9 women and girls. It occurs when tissue similar to the lining
of the uterus (endometrium) grows in other parts of the body
where it does not belong. Symptoms of the disease can vary
from abnormally painful period cramps to infertility.
Diagnosis currently takes an average of 6.5 years, sometimes
involving repeated testing and misdiagnosis. This leaves many
patients unable to receive adequate management and
treatment.
Source: Endometriosis Australia, 2023
What does endometriosis look like?
Endometriosis does not progress in a predictable or sequential manner. The most used scaling system for
the disease’s severity assigns points to characteristics of the disease, ranking severity from Stage I/Minimal
(1-5 points) to Stage IV/Severe (40+ points).
NO ENDO
MINIMAL ENDO
Stage I (1-5 pts)
MILD ENDO
Stage II (6-15 pts)
MODERATE ENDO
Stage III (16-40 pts)
SEVERE ENDO
Stage IV (>40 pts)
i.e. A healthy body
with no implants,
a few non-
endometriotic
lesions
s
0
A few superficial
implants
More superficial
and deeper
implants
Many deep implants
and adhesions.
Small cysts on one
or both ovaries
Many deep implants.
Large cysts on one or
both ovaries
s
15
s
40
Source: American Society for Reproductive Medicine
Endometriosis Stages and Common Myths
Myth 1. Endometriosis stages correlate to pain levels
Patients can experience severe pain and disturbances in their quality of life with minimal
endometriosis, while some patients with severe endometriosis may be asymptomatic.
Myth 2. Endometriosis can only be widespread in the later stages
Even minimal endometriosis can be widespread.
Myth 3. Endometriosis stages are a linear progression
Unlike most staged diseases, endometriosis does not necessarily advance through stages
in a predictable manner.
Current diagnosis is not precise
The current gold standard tool used for diagnosing endometriosis
is an invasive surgical procedure called a laparoscopy. Under
anaesthetic, an experienced gynaecological surgeon inserts a thin
telescope into a small ‘keyhole’ incision in the abdomen.
Lesions vary in appearance and many lesions found on the
membrane that lines the pelvic cavity (peritoneum) may not be
endometriosis. Other causes of pelvic cavity lesions can include
chronic inflammation, immune reactions to previous sutures, and
epithelial inclusions (misplaced gut cells that form benign cysts). These can often resemble the
opaque, white patches found in minimal and mild endometriosis during a laparoscopy.
If the doctor identifies a lesion suspected to be endometriosis, a small tissue sample may be taken
and sent for histopathology to confirm the presence of the disease. In this case a trained pathologist
will examine the cells under a microscope and use their judgement to determine if the lesion is
composed of cells originating from the endometrium.
Since the laparoscopy and pathology both rely only on the doctor’s experience and opinion there
is a chance that the condition may be misdiagnosed.
- a novel blood test for endometriosis
PromarkerEndo
The need for a non-invasive, sensitive, and simple diagnostic test for the early
screening of endometriosis is clear. This would allow patients prompt access
to management and treatment options.
Proteomics International has developed PromarkerEndo, a novel potential
world-first blood test for endometriosis. This test measures biomarkers -
protein fingerprints’ in the blood - associated with the disease to evaluate the
severity of endometriosis in patients. The prototype test identified up to 90%
of patients with the disease.
Source: World Endometriosis Conference (May 2023)
Laparoscopy relies on
doctors’ eyes both to
accurately identify lesions
and then determine
whether the cells originated
in the endometrium
Like any surgery,
laparoscopy has its risks –
for example organ perforations
and infections
Expensive and invasive:
As a highly specialised
procedure, laparoscopies can
incur high surgery and specialist
consultation fees on top of
time taken off work
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Technology Snapshot I
Proteomics International Laboratories Ltd
Proteomics International Laboratories Ltd
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PromarkerD and Drug Therapies for Diabetic
Kidney Disease
Diabetic Kidney Disease (DKD) is a serious complication of diabetes
causing irreversible loss of kidney function. Diabetes currently affects 1
in 10 adults globally which is estimated to increase within the next 20
years to 1 in 81. Of these adults with diabetes, 1 in 3 currently have DKD2.
New treatment option to slow DKD – SGLT2-inhibitor lowers
PromarkerD risk scores
In May 2023, Proteomics International published a feature article in the
internationally renowned Journal of Clinical Medicine showing the
benefits of early therapeutic intervention on diabetes patients at risk of
DKD. The study was conducted in collaboration with Janssen Research
and Development (part of Johnson & Johnson) and assessed the effect
of the SGLT2-inhibitor canaglifozin (Invokana®) versus placebo on
PromarkerD risk scores.
One-in-three adults with diabetes currently
have DKD - often called a ‘silent killer’, DKD can
cause irreversible loss of 80% of kidney
function prior to the onset of symptoms. DKD
leads to renal failure requiring dialysis or
kidney transplant. This makes early and
accurate diagnosis critical.
Decrease in PromarkerD Risk Score in High-Risk
Patients Taking Canagliflozin
+4.5%
Placebo
Canagliflozin
Baseline
-5.6%
The study asked the question:
Do “at-risk” diabetes patients identified by PromarkerD continue to
decline, stabilise or recover?
m
o
r
f
e
r
o
c
S
k
s
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R
D
r
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k
r
a
m
o
r
P
n
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e
g
n
a
h
C
6
)
%
(
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n
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l
e
s
a
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Comparison of average PromarkerD score
changes over three years in 'high-risk' patients
taking a placebo versus the SGLT2-inhibitor
canagliflozin. Patients on canagliflozin had a
significant reduction in PromarkerD scores
compared to the placebo group3.
• Over 2,000 patients were analysed retrospectively from the
•
•
completed CANVAS clinical trial (ClinicalTrial.gov registration
number NCT01032629).
The results showed a significant decrease in PromarkerD risk scores
among type-2 diabetes patients receiving canagliflozin, compared
to those on a placebo over a three-year period.
The biggest benefit was observed in patients identified as high-
risk by the PromarkerD test, with average reductions of 5.6%
(P<0.001) in PromarkerD scores for those on canagliflozin, while
high-risk patients on placebo had increased risk scores after
the three years - an overall improvement of >10%.
The publication demonstrates early use of an SGLT2-inhibitor can mitigate
the decline in kidney function in patients classified as high-risk of disease.
1 IDF Diabetes Atlas 10th Edition, 2021
2 Centers for Disease Control and Prevention 2019
3 Peters et. al, Journal of Clinical Medicine, 2023
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PromarkerD: Using precision diagnostics to predict DKD
Current clinical measures for diagnosing DKD can only detect the disease once it is already present. With
existing testing regimes a patient’s kidneys will have already sustained irreversible damage by the time the
disease is identified.
PromarkerD is a protein biomarker-based blood test that predicts the onset of DKD in type-2 diabetes
patients up to four years in advance. Clinical studies have shown that PromarkerD predicted over 86% of
disease-free patients that went on to develop DKD within four years of testing4 .
PROACTIVELY CHANGING RENAL HEALTHCARE
A simple blood test for predicting diabetic kidney disease
With an accurate prognostic
test for DKD, alongside an
effective early treatment
option, physicians now have
the tools to improve the
quality of life for their
diabetes patients and in the
process save healthcare
systems billions of dollars.
Sample PromarkerD Test Report: The cloud-based PromarkerD algorithm categorises
patients into ‘risk profiles’ (low, moderate or high) based on their four-year prognostic
risk of developing DKD. This risk-score helps physicians to administer appropriate early
interventions to slow or stop the onset of kidney disease.
Blockbuster drugs for DKD
Sodium glucose cotransporter protein 2 (SGLT-2) inhibitors, commonly referred
to as ‘gliflozins’, are FDA-approved blockbuster medicines used for glycaemic
control in diabetes. The drugs are also indicated for treating cardiovascular
disease in diabetes patients, and more recently their approval has been
extended to treating DKD. These medications are made by some of the world’s
largest pharmaceutical companies amassing global sales exceeding $11 billion
in 20225. The wide use of SGLT2-inhibitors makes them an ideal therapeutic
intervention for high-risk patients identified by PromarkerD.
Sales of gliflozin drugs
Canagliflozin
(Invokana)
developed by
Mitsubishi Tanabe
licensed by Janssen
Dapagliflozin
(Farxiga/Forxiga)
by Astrazeneca/
Bristol-Myers Squibb
Empagliflozin
(Jardiance)
by Boehringer
Ingelheim/ Eli Lily
* FDA approval
† EMA approval
2013:
treat type 2
diabetes * †
$
0.5
billion
2012:
treat type 2
diabetes †
2014:
treat type 2
diabetes *
2014:
treat type 2
diabetes * †
2016:
treat
cardiovascular
disease *
2018:
treat
cardiovascular
disease * †
2019:
treat
DKD *
2020:
treat
DKD †
$
4.4
billion
2020:
treat
cardiovascular
disease * †
2021:
treat CKD
and DKD * †
2021:
treat
cardiovascular
disease †
$
6.1
billion
Reported 2022 global sales in USD
4 Peters et. al, Journal of Diabetes and its Complications, 2019
5 Company reported global sales in USD
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Technology Snapshot II
Next Generation Diagnostics
Introducing OxiDx Pty Ltd
Spin-off company from Proteomics International
OxiDx Pty Ltd was launched in August 2022 as a spin-out from
Proteomics International and the University of Western Australia.
OxiDx is a medical technology company and operates as an
independent entity to maximise the commercialisation of the
patented ‘2-tag’ oxidative stress technology.
Oxidative Stress
Oxidative stress occurs when the body’s antioxidant defences are
overwhelmed by an excess of toxic oxidants, often referred to as free
radicals. Oxidative stress is implicated in over 70 health conditions1
with levels often reflective of a person’s health condition.
OxiDx’s unique platform
technology and in-field
blood collection offers a
comprehensive solution for
monitoring oxidative stress
levels, anywhere, anytime to
provide valuable insights
across multiple industries
OxiDx Applications
OxiDx’s sentinel platform technology measures systemic oxidative stress providing a broad application
across multiple markets. OxiDx is focusing on utility as a:
• Athletic monitoring tool for competition preparedness in:
- Professional Sports – performance, recovery and injury risk management
- Thoroughbred Racing Industry - injury risk management and competitive advantage in biological
readouts of muscle inflammation and race-preparedness
• Monitoring tool for health and wellbeing in:
- Precision Medicine as a direct-to-consumer tool for self-assessment
- Primary Industries - risk management to monitor conditions, handling and transport conditions,
pathogen invasion e.g., live export and stock production
• Complementary diagnostic (CDx) test for treatment efficacy and personalised
dosing in a range of indications:
- Clinical research such as clinical trials - potential utility in multiple health conditions
Patented Intellectual Property
OxiDx uses next generation diagnostics technology, moving beyond
measuring protein concentrations to detect subtle changes in
protein structures – ‘decorations’ that sit on the surface of a protein
and known as post-translational modifications. The technology is
protected by granted patents in the USA and Australia, with a new
family of patents pending in major jurisdictions (See page 22).
✓ Highly sensitive patented technology
✓ Streamlined rapid laboratory analysis allows
results to be returned to customers within 24 hr
✓ Fingerstick blood collection permits sampling
by anyone, anytime, anywhere
✓ No cold-chain logistics or special mailing
requirements
✓ Results feedback to inform management
strategy – simple decision tool
✓ Cost-effective for sequential sampling and
large cohort collection
By monitoring on a routine basis (e.g. daily or weekly) OxiDx is used to optimise training and recovery routines
to ensure athletes and thoroughbred horses are ready to perform at their best in competition.
Muscle injuries are the most frequent
cause of incapacity in sports, accounting
for up to of all sports injuries.
55%
$1.4billion
In 2019
was spent treating potentially avoidable
sports injuries in Australia
85%
of Thoroughbreds
suffer at least one
injury during the first 2–3-years
of their racing career
Muscle injury is difficult to
objectively identify in horses.
A blood-based tool would help
trainers identify deeper muscle
injury which often goes unnoticed
and can lead to devastating injuries
for the horse
Football teams in the English
Premier League lose an average of
AUD
$87million
per season due to injuries and injury-
related reductions in performance
Source: Appraising the Welfare of Thoroughbred Racehorses in Training in Queensland, Australia: The Incidence, Risk Factors and Outcomes
for Horses after Retirement from Racing
Source: Estimation of injury costs: financial damage of English Premier League teams' underachievement due to injuries.
Doi:10.1136/ bmjsem-2019-000675
Source: Australian Institute of Health and Welfare (2022): Economics of sports injury
1 doi: 10.1373/clinchem.2005.061408
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Directors’ Report
The Directors present their report on Proteomics International Laboratories Ltd (ASX:PIQ; Proteomics International or
the Company) and the consolidated entity (referred to hereafter as the Group) for the year ended 30 June 2023.
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
Dr Richard Lipscombe
Dr Robyn Elliott
Mr Paul House
Mr Roger Moore
(Non-Executive Chairman)
(Managing Director)
(Non-Executive Director)
(Non-Executive Director)
(Non-Executive Director)
(Appointed 16 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 45).
The operating result for the year was:
Loss before income tax
Loss for the year
Comprising
Revenue and Other income
Expenses
Change
25%
25%
CONSOLIDATED
2023
$6,234,310
$6,234,310
(3%)
14%
$3,320,862
$9,555,172
2022
$4,972,960
$4,972,960
$3,436,458
$8,409,418
The Group's financial report for the year ended 30 June 2023 includes:
• Revenue from ordinary activities encapsulates income from analytical services and Grant Income including
the R&D incentive, totalled $3.32 million.
• Operational Expenditure Increased to $9.55 million, and focused on the commercialisation and production of
the PromarkerD test and expansion of the PromarkerTM diagnostics pipeline.
• The loss from ordinary activities increased 25% to $6.23 million, which reflects normal operational costs and
non-cash items.
• The net cash outflow from operating activities was $5.69 million, an increase of 61%.
• At 30 June 2023, the Company had cash reserves of $6 million, and trade and other receivables of $0.1 million.
• On the back of the Company’s research and development focus, it anticipates an R&D Tax Incentive cash
rebate of $1.8 million, to be received in the December quarter of 2023.
DIVIDENDS
No dividend was paid during the year and the Board has not recommended the payment of a dividend.
ISSUED CAPITAL
120,978,992 fully paid ordinary shares (ASX: PIQ) and 2,450,000 unlisted options were on issue as at 30 June 2023.
ANNUAL GENERAL MEETING
Proteomics International advises that its 2023 annual general meeting (AGM) is scheduled to be held on 23 November
2023. The Company encourages shareholders to attend the AGM and receive an update on the strategy and initiatives
of the Group.
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Review of Operations
A growth cycle driven by the Company’s strengths
Principal activities
Proteomics International is a pioneering medical
technology company operating at the forefront of
predictive diagnostics and bio-analytical services.
The Company specialises in the area of proteomics—
the industrial scale study of the structure and
function of proteins.
Proteomics International's business model is centred
on the commercialisation of the Company's
pioneering test
for diabetic kidney disease,
PromarkerD. The Company offsets the cash burn
from R&D and product development through
provision of specialist analytical services, whilst using
its proprietary Promarker™ technology platform to
create a pipeline of novel diagnostic tests.
International
is a wholly-owned
Proteomics
subsidiary and trading name of Proteomics
International Laboratories Ltd (PILL; ASX: PIQ), and
operates from state-of-the-art facilities located on
the QEII Medical Campus, Perth, Western Australia.
1. PromarkerD
2. Diagnostics
Targeting the global diabetes epidemic, PromarkerD
is a predictive diagnostic test for diabetic kidney
disease, a progressive disorder found in one in three
adults with diabetes. The prevalence of kidney
disease is rising rapidly and many patients progress
to need dialysis or a kidney transplant. In peer-
reviewed clinical studies, PromarkerD correctly
predicted 86% of otherwise healthy people
with diabetes who went on to develop
chronic kidney disease within
four years1.
Proteomics International's diagnostics development
is made possible by the Company’s proprietary
biomarker discovery platform called PromarkerTM,
which searches for protein ‘fingerprints’ in a sample.
This disruptive technology can identify proteins that
distinguish between people who have a disease and
people who do not, using only a simple blood test.
It is a powerful alternative to genetic testing.
The technology is so versatile it can be
used to identify ‘fingerprints’ from any
biological source, from wheat seeds
to a blood sample. The global
biomarkers market is expected to
exceed USD 181 billion by 20302.
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
exceed USD 78 billion by 20303, whilst the market size of the global
biosimilar market was valued at USD 29.4 billion in 2023, and is projected to
reach USD 66.9 billion by 20284. The global proteomics market was valued at
USD 23.7 billion in 2021, and is expected to reach USD 98.1 billion by 20315.
1 For further information see the PromarkerD web portal: www.PromarkerD.com
2 Grand View Research 2023: Biomarkers Market Size
3 Grand View Research 2022: Clinical Trials Market Size
4 Markets and Markets 2023: Biosimilars Market by Drug Class
5 Allied Market Research 2022: Proteomics Market by Component
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PromarkerD
The 2022-23 financial year has been pivotal for PromarkerD, with a deal to bring
the test to the United States marking Proteomics International’s transition from
research and development to full commercialisation.
Other key achievements during the year include the approval of a CPT PLA reim-
bursement code in the United States, publication of a Medtech Innovation Briefing
in the United Kingdom and further demonstrations of the test’s clinical utility.
Problem & Solution
Source: International Diabetes Federation (IDF) Atlas 9th Edition 2021. US Renal Data System 2020
About PromarkerD
Diabetic kidney disease (DKD) is a serious complication arising from diabetes that, 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
PromarkerD - Licensing and distribution
Proteomics International achieved a pivotal milestone in its global commercialisation
strategy for PromarkerD with a deal to bring the test to patients in the United States.
Over 7,000 Employees
Over 300 Sales reps
Over 400 pathologists
Services over 20 million patients
Marketing, Sample collection, Reporting
CLIA Certified Laboratories
Exclusive licence agreement with Sonic Healthcare
USA to take PromarkerD to the US market
In May 2023, Proteomics International achieved a
landmark milestone with the signing of an exclusive
licence agreement with Sonic Healthcare USA to
commercialise the PromarkerD test for diabetic
kidney disease in the United States. Under the
agreement, Sonic Healthcare USA will offer
PromarkerD to physicians and healthcare systems
through its client engagement teams across the US.
The agreement followed months of diligent work by
both companies towards the rollout of PromarkerD
in the US. The licence with Sonic Healthcare USA is for
five years, extendable by mutual agreement, and
exclusive to the United States (excluding Puerto Rico).
The deal came after Proteomics International and
Sonic Healthcare USA signed a binding and exclusive
letter of intent in August 2022, documenting the
preliminary terms and expectations for how the two
companies would work together to bring the
PromarkerD test to patients in the US.
A number of key milestones were achieved under the
letter of intent, including optimisation of the test for
a high-throughput environment. PromarkerD became
a featured test on the Sonic Reference Laboratory
(USA) test menu in October 2022, and a CPT PLA
reimbursement code approved in January 2023.
In the United States, an estimated 32 million people,
or 11 per cent of the population, live with diabetes.
Distribution agreement for PromarkerD in Britain
extended
In February 2023, Proteomics International extended
its distribution agreement with medical diagnostics
company Apacor Limited to bring PromarkerD to
patients
in the United Kingdom. Proteomics
International began working with Apacor in 2021.
Since then, several key milestones have been
achieved, including PromarkerD being registered
with the UK Medicines & Healthcare products
Regulatory Agency, and the publication of National
Institute for Health and Care Excellence (NICE) advice
on PromarkerD.
Based on this success, Proteomics International and
Apacor wished to extend the relationship and agreed
to an additional five-year term. Both parties are now
working towards the inclusion of PromarkerD in the
NICE Guidelines and engaging with the NHS Supply
Chain Tender process as part of the commercial
rollout of the test in the UK. The updated distribution
agreement provides Apacor Limited with the
exclusive right to sell the immunoassay version of the
PromarkerD test in England, Scotland and Wales until
31 January 2028.
PromarkerD first sales, partnering in Europe and
rest-of-world markets
First sales for the PromarkerD test were achieved in
Central America through licence partner Omics
Global Solutions. Proteomics International also
remains in discussions with potential laboratory
partners in Europe and elsewhere to provide
PromarkerD to more patients with diabetes
worldwide.
The EU remains a key market for PromarkerD, with
the test having already completed CE Mark
registration, and Proteomics International continues
to evaluate strategies for early adoption of
PromarkerD in Europe.
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PromarkerD - Manufacturing
PromarkerD - Regulatory and reimbursement
The groundwork has been laid for large-scale global distribution of PromarkerD.
Scale-up of Northern Hemisphere production continues
The manufacture and scale-up of production and validation
batches of the PromarkerD immunoassay kit is continuing
through the Company's ISO 13485 certified manufacturer in
Europe. This follows the successful tech-transfer and pilot
batch production in 2022.
MTPConnect funded manufacturing project concludes
successfully
In May 2022 Proteomics International announced it was one
of a select group of companies chosen to receive funding in
Round Four of the BioMedTech Horizons (BMTH) program, an
initiative of the Medical Research Future Fund (MRFF)
delivered by MTPConnect, aiming to accelerate the
development of innovative health technologies. The project
saw Proteomics International obtain a renewal of its ISO
13485 certification, submit a request to the TGA for inclusion
of PromarkerD in the Australian Register of Therapeutic
Goods (ARTG) to enable the sale and clinical use of the test
in Australia, and supported the manufacture of the
PromarkerD assay. The project concluded successfully during
the year and achieved its main purpose of de-risking the
supply chains for key reagents such as antibodies and
providing a solid platform for scaling up future manufacture
in Australia.
Proteomics International is pursuing regulatory approval in multiple jurisdictions as
part of its global commercialisation strategy.
CPT PLA reimbursement code approved and became
effective in the United States
In January 2023, Proteomics International achieved a major
milestone in the commercialisation of PromarkerD with the
approval of a new dedicated CPT® Proprietary Laboratory
Analyses (PLA) code for the test in the United States. The CPT
PLA code—issued by the American Medical Association—is
key to PromarkerD reimbursement being covered by both
Medicare and private health insurers in the US, and hugely
important for enabling affordable access and broad adoption
of the test.
The new code for PromarkerD (0385U) was granted to Sonic
Reference Laboratory as the clinical
laboratory and
Proteomics International as the manufacturer. It became
effective from 1 April 2023, which means service providers
(laboratories) are now able to report the PromarkerD test
using the code.
A critical part of the rollout of PromarkerD is engagement
with payers which is ongoing, with the Centers for Medicare
& Medicaid Services (CMS) recently listing the code in its CY24
Clinical Laboratory Fee Schedule (CLFS) Annual Laboratory
Meeting Code List. This is an essential step towards
establishing a payment rate for PromarkerD.
Application for PromarkerD listing on Australian Medicare
Benefits Schedule to be resubmitted
In March 2023, the Company's initial application to have
PromarkerD listed on the Australian Medicare Benefits
Schedule (MBS) was denied, which is common for the
majority of first-time submissions to the MBS and
Pharmaceutical Benefit Scheme (PBS). The Medical Services
Advisory Committee (MSAC) that reviews applications noted
the potential wide uptake of the test and long-term savings
to the Australian health system, whilst also seeking further
evidence on how the use of the test would change clinical
practice.
The MSAC decision came after key bodies in the Company's
target markets of the USA and UK moved towards endorsing
the test. Proteomics International is confident it can provide
the necessary information to address the committee's
concerns and intends to resubmit its application. MSAC's
decision on reimbursement is not linked to the separate
application for regulatory approval of the PromarkerD
immunoassay kit by the Australian Therapeutic Goods
Administration (TGA) which is still ongoing.
US Reimbursement Pathway
Unique CPT
Proprietary Laboratory
Analysis (PLA) code
approved
Centers for Medicare and
Medicaid Services (CMS)
posts updated code list
PLA code (0385U) for
PromarkerD effective
American Clinical Lab
Association engaged by
SHUSA to consider
crosswalk or gapfill
pricing
CMS Clinical Lab
Fee Schedule
(CLFS) Annual
Meeting to consider
pricing
CMS proposed
pricing
determinations
published for
comment
CMS final pricing
published
✓
Jan 2023
✓
Apr 2023
t
✓
May 2023
t
✓
Jun 2023
Sept 2023
Jan 2024
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PromarkerD Presentations & Publications
PromarkerD Clinical Utility
Evaluation of the Clinical Utility of the PromarkerD In-vitro Test in Predicting Diabetic Kidney Disease and Rapid
Renal Decline Through a Conjoint Analysis. Authors: Fusfeld, Murphy, Yoon, Kam, Peters, Tan, Shanik, Turchin.
Published in PLOS ONE, August 2022.
Canagliflozin Attenuates PromarkerD Diabetic Kidney Disease Risk Prediction Scores.
Authors: Peters, Bringans, O’Neill, Lumbantobing, Lui, Davis, Hansen and Lipscombe.
Published in Journal of Clinical Medicine, May 2023
PromarkerD Technology Platform
Proteomics International: Manufacturing the Next Generation In-vitro Diagnostic Device to Predict Diabetic
Kidney Disease. Presenter: Dr RJ Lipscombe, BioMedTech Horizons (BMTH) WA Showcase, September 2022
Applying Precision Medicine to Develop a Prognostic Test for Diabetic Kidney Disease.
Presenter: Dr SD Bringans, ANZSN 2022 Renal Scientist Workshop, October 2022
Immunoaffinity Mass Spectrometry Diagnostic Tests for Multi-Biomarker Assays.
Authors: Bringans, Casey, Ito, Lumbantobing, O’Neill, Lipscombe. Book Chapter in Serum/Plasma Proteomics:
Methods and Protocols. Springer US, New York, NY, 2023
PromarkerD - Clinical
PromarkerD - Clinical
The strong evidence base underpinning PromarkerD continues to grow.
lowers PromarkerD
SGLT2-inhibitor canagliflozin
diabetic kidney disease risk prediction scores
In May 2023, Proteomics International announced research
showing a significant reduction in the PromarkerD risk
scores of patients with type 2 diabetes after taking the
diabetes medicine canagliflozin. The results were
published as a feature article in the international peer-
reviewed Journal of Clinical Medicine.
The study was conducted as part of a long-running
collaboration between Proteomics International and
Janssen Research & Development, the pharmaceutical arm
of Johnson & Johnson. The research found the average
PromarkerD risk score of patients taking canagliflozin
dropped during the trial, while the average risk score of
patients taking a placebo rose. The effect was greatest in
participants who were identified by PromarkerD to be at
high-risk of a decline in kidney function at the start of the
study (see Technology Snapshot).
Clinical utility study demonstrated PromarkerD test
offers improved treatment options for doctors in the
fight against diabetic kidney disease
A study demonstrating the clinical utility of the
PromarkerD test in predicting diabetic kidney disease was
published in the scientific journal PLOS ONE in August 2022.
The publication provided
important peer-reviewed
validation of initial results that were previously presented
at major industry conferences.
The specialist conjoint analysis survey of 400 primary care
physicians and endocrinologists showed that doctors
ranked PromarkerD results as more important than current
standard-of-care tests eGFR (estimated glomerular
filtration rate) and ACR (urinary albumin - creatinine ratio),
and found PromarkerD risk scores would significantly
impact physician decision-making. In the study, 98% of
physicians were likely to order the PromarkerD test for their
type 2 diabetes patients, with only 2% indicating they
would not order the test.
PromarkerD - Market
PromarkerD - Clinical
Proteomics International is driving the global uptake of PromarkerD through
engagement with key professional bodies and clinical experts in diabetes
and nephrology.
UK's National Institute for Health and Care Excellence
(NICE) published Medtech Innovation Briefing on
PromarkerD
In December 2022, the National Institute for Health and
Care Excellence (NICE), an independent organisation
established by the UK Government to provide guidance
and advice on medical treatments, published a Medtech
Innovation Briefing on PromarkerD.
Medtech Innovation Briefings are commissioned by the
National Health Service (NHS) in the UK. Known as NICE
advice, they are designed to increase awareness of new
technologies for planning and commissioning new
innovation in the UK healthcare industry. The briefing,
aimed at clinicians, managers and procurement
professionals in the UK, reported that PromarkerD is
effective at predicting renal function decline in people with
type 2 diabetes.
There is a rigorous selection process for inclusion in the
NICE advice process, taking into account the potential
benefits of a technology, its regulatory status, clinical
evidence and more. There were only 28 Medtech
Innovation Briefings published in 2022.
The NICE advice supports the reimbursement process and
broader adoption of PromarkerD in the UK, and its
publication enables Proteomics International to pursue
inclusion of PromarkerD in the NICE Guidelines and to
engage with the NHS Supply Chain Tender process.
Clinical Advisory Board expanded to support PromarkerD
USA and global rollout
International appointed
In April 2023, Proteomics
additional key opinion leaders (KOLs) to its world class
PromarkerD Clinical Advisory Board. The new board
respected healthcare
members
in primary care diabetes
professionals specialising
education and management in the United States. These
KOLs will be able to provide tailored advice from the 'voice
of the customer' (patients and clinicians) perspective on
the rollout of PromarkerD.
comprise highly
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PromarkerD - Intellectual Property
Diagnostics
The Company's PromarkerD intellectual property portfolio covers 72% of the world’s
population living with diabetes.
Deep pipeline of novel precision health and predictive diagnostic tests continues to
expand.
PromarkerD patent granted in Hong Kong
In November 2022, patent protection for PromarkerD was
expanded to Hong Kong, where 11.6% of the population—or
686,000 adults—have diabetes. Hong Kong is also an
important gateway market, with potential for the test to be
introduced there prior to entering the much larger China
market. The Hong Kong patent complements those already
granted in the USA, Europe, Australia, Brazil, Canada, China,
Indonesia, Russia, Singapore, India and Japan.
European PromarkerD patents expanded beyond diabetes
In July 2022, European patent protection for Proteomics
International’s PromarkerD predictive test was expanded to
include diagnosing all individuals who are prediabetic and
asymptomatic for kidney disease. Globally 537 million adults
have diabetes, and an additional 541 million (10.6% of the
world's adult population) have prediabetes, an at-risk
category for kidney disease. Further clinical studies are
needed to demonstrate that PromarkerD can be used to
diagnose kidney disease beyond those with diabetes.
Promarker™ pipeline advances
Proteomics International has a deep pipeline of novel precision health and predictive diagnostic tests in development. This
R&D is enabled 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 human serum.
Proteomics International believes its Promarker™ platform has broad applicability and the potential to produce multiple
new diagnostic tests to address significant unmet medical and commercial needs.
PromarkerD ‐ Intellectual Property
PromarkerD - Intellectual Property
Proteomics International owns three families of patents for PromarkerD in key markets
1) Diabetic Kidney Disease
Title: "Biomarkers associated with pre-diabetes, diabetes and diabetes related conditions"
Derived from International Patent Application PCT/AU2011/001212
All patents valid until September 2031
Patent Title
Patent No.
AU2011305050
BR112013006764
CA2811654
CN103299192
Status
Country/Region
Country/Region Patent No. Patent Title Status
Australia
Granted
Granted
Brazil
Granted
Canada
China
Granted
Europe1
Hong Kong
India
Indonesia
Japan
Russia
Singapore
USA
EP3151012
HK1256827
IN390245
IDP000059245
JP6271250
RU2596486
Method of assessing diabetic nephropathy using CD5 antigen-like
Biomarkers Associated with Diabetic Nephropathy
SG188527
US9146243
Granted/Validated
Granted
Granted
Granted
Granted
Granted
Granted
Granted
1Validated in France, Germany, Italy, Turkey, Spain, United Kingdom
2) Pre-Diabetes and Diabetes
Divisional Derived from International Patent Application PCT/AU2011/001212
Patent valid until September 2031
Country/Region Patent No. Patent Title Status
Country/Region
Status
Europe2
Patent Title
Biomarkers associated with pre-diabetes, diabetes and diabetes related conditions
Patent No.
EP3343226
Granted/Validated
2Validated in France, Germany, Italy, Turkey, Spain, United Kingdom
3) Kidney Disease
Country/Region Patent No. Patent Title Status
Country/Region
Status
Granted
Australia
Granted
USA
Granted
USA
Patent Title
Biomarkers associated with kidney disease (Valid until September 2031)
Method of assessing a subject for abnormal kidney function (Valid until 30 September 2031)
Method for identifying an agent for treating abnormal kidney function (Valid until 30 Septmeber 2031)
Patent No.
AU2015202230
US9733259
US10191067
US3
Europe3
US7842463
EP1941274
Method of diagnosing early stage renal impairment (Patent valid until 30 September 2027)
Granted/ Licensed
Method for predicting the progression of chronic kidney disease by measuring apolipoprotein a-iv (Patent valid until 8 September 2026)
Granted/ Licensed
3Licensed exclusively to Proteomics International from the University of Innsbruck
Trademark - PromarkerDTM
Class 44 - Medical diagnostic services (No 1776917)
Class 5 - Diagnostic apparatus for medical purposes including diagnostic kits (No 1806616)
Country/ Region
Status
Country/Region Status
Registered
Australia, China, Dominican Republic, European Union, Israel, Japan, South Korea, Mexico, New Zealand, Russia, Singapore, USA
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Diagnostics
Endometriosis (see Window on the Science)
Status update: Clinical validation study and diagnostic
model completed; accessing additional samples for
independent validation.
Proteomics
into
Research
International’s potential world-first
blood test for endometriosis showed
a strong diagnostic performance of
the test. The Company’s preferred
prototype correctly identified up to
90 per cent of patients when comparing moderate or severe
endometriosis to symptomatic controls (no endometriosis)
in a study of 901 participants.
The endometriosis study was conducted in collaboration
with the Royal Women’s Hospital and the University of
Melbourne.
Proteomics International’s results also suggest the current
gold standard for diagnosis - an invasive surgical procedure
- may be misdiagnosing some patients, particularly in the
early stages of endometriosis.
Research findings related to the test were presented at
several conferences during the year, including:
• Fertility Society of Australia and New Zealand
Annual Conference (FSANZ 2022) in Sydney,
July 2022
• 70th Annual Meeting of the International Society
for Reproductive Investigation (SRI) in Brisbane,
March 2023
• 15th World Congress on Endometriosis in Edinburgh,
May 2023
Proteomics International is now targeting confirming the
clinical performance and clinical utility of the test in
independent patient cohorts, and accelerating pathways
to commercialisation of the biomarker panel as a new
diagnostic screening test for endometriosis.
Oesophageal cancer
Status update: Clinical validation study completed;
statistical modelling ongoing; accessing additional
samples for independent validation.
into
the Company’s
Research
test
for
prototype diagnostic
adenocarcinoma
oesophageal
diagnostic
showed
performance, with
test
the
detecting up to 90% of people with
the frequently fatal condition. The results were presented
at the 18th World Congress for Esophageal Diseases in
Tokyo, Japan, 26-28 September 2022.
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Oesophageal adenocarcinoma is the most common form
of oesophageal cancer and is an area of significant unmet
medical need, with current screening requiring a specialist
endoscopy procedure that costs US$2,750 per patient in the
United States. The results represent an exciting milestone
in the development of a potential new, accurate, and easy
to use blood test for oesophageal adenocarcinoma. To
enhance the accuracy and clinical utility of its test the
Company is currently undertaking additional data analysis.
Oxidative stress (2-tag) (see Technology Snapshot II)
Status update: Proof-of-concept completed; validation
studies commencing.
Proteomics International announced the spin-off of an
independent business to commercialise technology for
measuring oxidative stress testing technology developed in
collaboration with The University of Western Australia. The
new incorporated joint venture - OxiDx Pty Ltd - is focussing
on developing innovative medical diagnostic products using
the patented ‘2-tag’ measure for oxidative stress.
Oxidative stress has been implicated in many chronic
diseases, and the ‘2-tag’ method could be part of the next
generation of medical diagnostic tests. The technology has
several target applications, including chronic fatigue,
muscular dystrophy, high-performance athletes and the
horse racing industry.
Asthma and COPD
Status update: Proof-of-concept study completed; patent
application filed; clinical validation ongoing.
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).
An
in
initial proof-of-concept study, performed
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. A patent application on methods for
diagnosing airway disease has been filed. Potential
biomarkers from this study are now being validated in a
larger clinical cohort. The results of this validation will
refine the panel of biomarkers into a potential new blood
test for diagnosing obstructive airway disease.
Diagnostics
Plant dieback
Status update: Discovery phase successfully completed;
validation phase ongoing.
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. Initial investigations
focused on proteomic analysis (determining the protein
maps) of the life stages of the organism and how it infects
its host. These maps provided a blueprint of what proteins
were present throughout the life cycle of the organism.
Biomarkers for identifying plant dieback have been
discovered, with current experiments determining their
detection level in ‘real life’ samples of infected plant root.
This opens the way for developing a simple field diagnostic
test for the presence of Dieback.
Giardia (causing gastroenteritis)
Status update: Project suspended.
Giardia is a leading cause of infectious gastroenteritis
worldwide and one of the most common parasitic human
diseases. Proteomics International has identified strain
specific Giardia targets however further work is required to
develop an assay for clinical use. The project is currently on
hold pending a review of its commercial and technical
viability.
extended
Proteomics
International
Diabetic retinopathy
Status update: Discovery study complete. Proof-of-concept
underway.
Following the success of the diabetic kidney disease
its
project,
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.
Discovery experiments have yielded potential biomarkers
for the early diagnosis of retinopathy. The next stage is to
verify these biomarkers in a larger cohort set.
Diabetes complications - DKD in type-1 diabetes
& diabetic neuropathy
Status update: Discovery studies commencing.
Proteomics International previously announced it has
become an industry partner to the Australian Centre for
Accelerating Diabetes Innovations (ACADI). The Centre
combines diabetes expertise from across Australia and
aims at improving the lives of people living with diabetes.
Following finalisation of contract terms and project plans
Proteomics International has added a new R&D program
to investigate predictive markers for diabetic neuropathy.
The Company will also explore the applicability of
PromarkerD to patients with type 1 diabetes (in addition
to its current use in type 2 diabetes).
Precision diagnostics facility received $2 million funding boost
In October 2022, Proteomics International, The University of Western Australia (UWA) and Bioplatforms
Australia announced a $2 million expansion of the WA Proteomics Facility to accelerate the
development of precision diagnostic tests. The WA Proteomics Facility is a Public Private Partnership
between the three organisations. It is jointly managed by Proteomics International and UWA, and
combines their respective expertise to explore biological protein markers that affect medicine,
agriculture, and the environment.
Over three years, the partners will co-invest $2 million to increase capacity and throughput at the
cutting-edge facility with new equipment for automated sample handling and analytical quantitation,
coupled with the development of advanced data processing tools. Under the management agreement,
Bioplatforms Australia (through the Commonwealth Government National Collaborative Research
Infrastructure Strategy (NCRIS)) contributes $1.7m to the facility for capital and operational purposes,
with half the funds going to Proteomics International to expand its laboratory capacity. Proteomics
International and UWA have invested a further $150,000 in cash.
The laboratory has expanded with the purchase of high-end equipment to speed the development
and analysis of biomarkers within the joint WA Proteomics facility.
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Diagnostics
Endometriosis ‐ Intellectual Property
Endometriosis - Intellectual Property
Title: "Endometriosis biomarkers"
Derived from International Patent Application PCT/AU2021/050227
If granted, patent projected to be valid until March 2041
Country/Region Application/Patent No. Status
Country/Region
Status
Pending
Australia
Pending
Brazil
Pending
Canada
Pending
China
Pending
Europe
Pending
India
Pending
Japan
Pending
Singapore
Pending
US
Pending
Indonesia
Pending
Republic of Korea
Pending
Mexico
EP4121776
202217049212
JP2023520132
11202252510K
US2023089507
P00202211148
KR20220154725
MX/a/2022/011397
Application/ Patent No.
AU2021237128
BR112022018339
CA3169082
CN115349091
Airway Disease ‐ Intellectual Property
Airway Disease - Intellectual Property
Title: "Airway disease biomarkers"
Country/Region Application/Patent No. Status
Country/Region
Status
Pending
Provisional
Application/ Patent No.
2023900328
Oxidative Stress (“Two Tag”) ‐ Intellectual Property
Oxidative Stress ("Two-Tag") - Intellectual Property
Proteomics International owns two families of patents for Two-Tag in key markets with others pending
1) Title: "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
Country/Region
Status
Granted
Australia
Granted
USA
Patent No.
AU2006317506
US8043824
2) Title: "Methods for measuring relative oxidation levels of a protein"
Derived from International Patent Application PCT/AU2019/050267
If granted, all patents projected to be valid until March 2039
Country/Region Application/Patent No. Status
Country/Region
Status
Pending
Australia
Pending
Canada
Pending
China
Pending
Europe
Pending
India
Pending
Indonesia
Pending
Japan
Pending
Singapore
Pending
USA
Application/ Patent No.
AU2019240758
CA3094249
CN112020650
EP3775927
IN202017044154
P00202007798
JP2021518907
SQ11202008979Q
US2021041449
Oesophageal Cancer ‐ Intellectual Property
Oesophageal Cancer - Intellectual Property
Title: "Glycoprotein biomarkers for esophageal adenocarcinoma and Barett's esophagus and uses thereof"
Oesophageal Cancer - Intellectual Property
Derived from International Patent Application PCT/AU2015/050723
Title: "Glycoprotein biomarkers for esophageal adenocarcinoma and Barett's esophagus and uses thereof"
All patents valid until November 2035
Derived from International Patent Application PCT/AU2015/050723
All patents valid until November 2035
Country/Region Application/Patent No. Status
Country/Region
Status
Australia4
Country/Region
Canada4
Australia4
China4
Canada4
Europe4,5
China4
Hong Kong4
Europe4,5
United States4
Hong Kong4
United States4
4Licensed exclusively to Proteomics International from Queensland Institute of Medical Research
5Validated in France, Germany, Spain, Turkey and United Kingdom
4Licensed exclusively to Proteomics International from Queensland Institute of Medical Research
5Validated in France, Germany, Spain, Turkey and United Kingdom
AU2015349613
Application/ Patent No.
CA2967869
AU2015349613
CN107430126
CA2967869
EP3221701
CN107430126
HK1244877
EP3221701
US2022018843
HK1244877
Application/ Patent No.
US2022018843
Granted
Status
Pending
Granted
Granted
Pending
Granted/ Validated
Granted
Granted
Granted/ Validated
Pending
Granted
Pending
Presentations and publications
Endometriosis
Biomarkers for Endometriosis. Authors: Garrett, Andronis, Bringans,
Casey, Chen, Ismail, Ito, Killeen, Laming, Lipscombe, Peters, Raju,
Wong, Rogers, Holdsworth-Carson. Fertility Society of Australia and
New Zealand Annual Conference (FSANZ 2022), Sydney, July 2022
Biomarkers for Endometriosis. Presenter: D Ismail, Perth Protein
Group Annual General Meeting, Perth, September 2022
A Novel Plasma Protein Biomarker Test for Diagnosing Endometriosis.
Presenter: Dr KE Peters, 70th Annual Meeting of the International
Society for Reproductive Investigation (SRI), Brisbane, March 2023
A Novel Plasma Protein Biomarker Test for Diagnosing
Endometriosis. Authors: Peters, Schoeman, Andronis, Bringans,
Casey, Chen, Ismail, Ito, Raju, Tan, Lipscombe, Rogers, Holdsworth-
Carson, 15th World Congress on Endometriosis, Edinburgh,
Scotland, May 2023
Oesophageal cancer
Establishing a Mass Spectrometry Based Diagnostic Test for
Oesophageal Cancer. Authors: Duong, Bringans, Chen, Fernadez,
Casey, Laming, Di Prinzio, Hill, Lipscombe. 18th World Congress for
Esophageal Diseases in Tokyo, Japan, September 2022
Development of a Lectin Bead-based Diagnostic Test for
Oesophageal Cancer. Presenter: Dr SD Bringans, 28th Annual Lorne
Proteomics Symposium, February 2023
Semi-Automated Lectin Magnetic Bead Array (LeMBA) for
Translational Serum Glycoprotein Biomarker Discovery and
Validation. Authors: Dutt, Duong, Bringans, Richards, Lipscombe,
Hill. Book Chapter in Serum/Plasma Proteomics: Methods and
Protocols. Springer US, New York, NY, 2023
Analytical Services
The Company continues to offer a range of specialised analytical services to clients
across the biotechnology industry.
ISO 13485 certification and ISO 17025 accreditation renewed
The National Association of Testing Authorities (NATA) approved the continuation of Proteomics International’s ISO 17025
accreditation, a global standard that ensures a laboratory is technically competent and produces accurate, valid and reliable
results. Proteomics International proudly received the world’s first ISO 17025 accreditation for proteomics services in 2009.
The British Standards Institution (BSI) also renewed Proteomics International’s ISO 13485 certification, which ensures safety
and quality management in the design, development, manufacture and sale of medical devices. Both renewals will benefit
the global product launch of PromarkerD, and underpin the Company’s analytical services and pipeline of innovative diagnostic
tests under development.
Proteomics International Revenue
3,000,000
2,000,000
1,000,000
2016
2017
2018
2019
2020
2021
2022
2023
Analytical Services $
816,845
925,537
1,176,457
1,468,076
1,423,070
1,310,824
1,489,323
730,340
Grants and other Income $
45,955
144,484
130,343
128,833
454,389
386,770
235,232
741,690
Research & Development $
Tax Incentive
572,269
790,751
844,123
1,139,403
1,138,815
1,290,899
1,711,903
1,848,832
World’s most accredited protein testing laboratory
Proteomics International was the first laboratory in the world to receive ISO/IEC
accreditation for proteomics services in 2009 (Accreditation number: 16838). In 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
ISO 13485: 2016 Medical devices — Quality management systems — Requirements for regulatory purposes
Accreditation recognises Proteomics International's ability to consistently achieve technically valid,
traceable and reproducible results. In 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.
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Company Operations
Proteomics International Laboratories Ltd
Proteomics International Laboratories Ltd
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Environmental, Social and Governance
by
supported
CORPORATE ACTIVITY
Proteomics International raised $8 million (before costs)
through the issue of 9.41 million shares in the Company.
The Placement was at an issue price of $0.85 per share, a
discount of 11.1% to the 5-day VWAP. It was heavily
Australian-based
oversubscribed,
institutions, and sophisticated and professional investors.
Funds from the Placement (after costs) are being used to
strengthen production and build inventory of the
PromarkerD predictive test for diabetic kidney disease,
support US sales and marketing for PromarkerD, develop
the PromarkerTM diagnostics pipeline and for general
working capital. During the year, Directors, employees and
advisors exercised options raising an additional $3.5 million
dollars (before costs).
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 10 July 2023, 105,729 fully paid ordinary shares were
issued upon the exercise of unquoted performance rights.
the
rights were
The performance
Performance Rights Plan as per of the incentive structures
for employees and key management personnel.
issued under
On 14 August 2023, 1,250,000 shares were issued upon the
exercise of advisory options at $0.50 per option, raising
$625,000 before costs.
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
International in any given timeframe. Nonetheless,
PromarkerD has the potential to spare millions of people
from the cost of dialysis, saving each healthcare 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 supported by the analytical services operations.
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.
The inaugural scholarship recipient, Imogen Sorby,
graduated from the University of New South Wales in 2023,
and is now working in Europe. Proteomics International is
currently training one scholar in residence. Two scholarship
students are completing university studies in Victoria and
New South Wales. The program is ongoing and Proteomics
International looks forward to supporting the 2023 class of
budding life scientists.
Australian Centre for Accelerating Diabetes Innovations
(ACADI)
In January 2022 Proteomics International became an
industry partner in the Australian Centre for Accelerating
Diabetes Innovations (ACADI), which was awarded $10
million over four years from the Australian Government’s
Medical Research Future Fund.
The centre combines diabetes expertise from across
Australia and aims at improving the lives of people living
with diabetes, including addressing diabetic kidney
disease.
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
the
Australia. Strategic
development of scientific knowledge and help Proteomics
International realise its scientific and business objectives.
collaborations promote
Highlights of the Company’s collaborations include:
Harry Perkins Institute of Medical Research (Perkins)
The Perkins is the premier adult medical research institute
in Western Australia. Proteomics
is
headquartered there and has held close ties with the
Perkins since 2006.
International
Bioplatforms Australia (BPA)
BPA is a federal body instigated as part of the National
Collaborative Research Infrastructure Scheme (NCRIS) to
facilitate a national capability in the 'omics sciences
(genomics,
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.
metabolomics
proteomics,
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.
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Environmental, Social and Governance
Board of Directors and Operational Team
HUMAN CAPITAL
ENVIRONMENTAL
Environmental regulations
The Company is subject to environmental regulation and
other licences in connection with its research and
development activities utilising the facilities at the Harry
Perkins Institute of Medical Research. The Company
complies with all relevant federal, state and local
environmental regulations. The Board is not aware of any
breach of applicable environmental regulations by the
Company.
Greenhouse gas and energy data reporting
The Company has assessed the reporting requirements of
both the Energy Efficiency Opportunities Act 2006 and the
National Greenhouse and Energy Reporting Act 2007 and
the Group is not currently subject to any reporting
obligations.
GOVERNANCE
The Board of Directors is responsible for the operational
and financial performance of the Company, including its
corporate governance. The Company believes that the
adoption of good corporate governance adds value to
investor confidence.
stakeholders and enhances
Proteomics
governance
statement is available on the Company’s website, in a
section titled ‘Corporate Governance’.
International’s
corporate
Proteomics International 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
FEMALE
56%
FEMALE
20%
FEMALE
50%
Staff
Board
Senior
Management
44%
MALE
80%
MALE
50%
MALE
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
MA (Oxford),
PhD (London)
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 healthtech, 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 and his PhD in immunology at London University. 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
Responsibilities
Chairman
Particulars of Director’s
interest in securities
of the Company
Shares
117,647
Options
500,000
Managing
Director
19,048,705
-
Nil
-
250,000
Nil
1,036,511
-
Nil
975,824
-
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CURRENT AND FORMER DIRECTORSHIPS
Directors’ Name
Current Directorships
Former Directorships (last 3 years)
OPERATIONAL TEAM
Proteomics International has established and maintained a highly qualified, multilingual team with well-balanced
commercial and scientific expertise. The senior management group comprises:
Neville Gardiner
Galena Mining Ltd (since 20 October 2021)
Richard Lipscombe
Roger Moore
Paul House
Robyn Elliott
Nil
Nil
Nil
PolyNovo Ltd (since 28 October 2019)
Nil
Nil
Nil
Nil
Nil
COMPANY SECRETARY
Ms Karen Logan BCom, Grad Dip AppCorpGov, FCG, FGIA, GAICD
Karen Logan is a Chartered Secretary with over 20 years’ experience in assisting small to medium capitalised ASX-listed and
unlisted companies with compliance, governance, financial reporting, capital raising, merger and acquisition, and
IPO matters. She is presently the principal of a consulting firm and secretary of a number of ASX-listed companies, providing
corporate and accounting services to those clients.
MEETINGS OF DIRECTORS
The numbers of meetings of the Company’s Board of Directors held during the year ended 30 June 2021, and the numbers
of meetings attended by each Director were:
Directors
Mr Neville Gardiner
Dr Richard Lipscombe
Mr Ian Roger Moore
Mr Paul House
Dr Robyn Elliott
Full Meetings of Directors
A
B
10
10
10
10
9
10
10
10
10
10
A = Number of meetings attended
B = Number of meetings held during the time the Director held office
The Board meets regularly on an informal basis in addition to the above meetings.
Directors have determined that the Company is not of sufficient size to merit the establishing of separate sub-committees
and all decisions are made by the full Board.
Chief Financial Officer
Ms Jacqueline Gray
Jacqueline has more than 25 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 25 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 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 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 activities on 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 2014.
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.
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
experience
research
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 in OxiDx P/L). 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.
in management and
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 17 years.
Business Manager - Analytical Services
Ms Sreeja Sony
Sreeja brings 14 years of Sales & Business
the medical
Development experience
technology and pharmaceutical sectors. She has
handled operations, logistics, technical support and
purchasing activities in her previous roles. Sreeja
has substantial experience selling life sciences services, consumables
and instruments to a wide range of clients across the biopharma space.
in
Sreeja joined Proteomics International in 2016 and was recently
appointed to Business Manager of the company’s Analytical Services
business.
US Sales Director
Mr Michael LeFauve
Mike brings over 25 years of Sales Leadership
experience in the medical device and diagnostic
arena, from innovative start-ups to best-in-class
market leaders. He has extensive experience
managing national sales teams, both with direct
employee based teams and external distribution partners for the USA
market, along with a product
launch portfolio ranging from
breakthrough innovations to well established medical technologies.
Mike recently served as Vice President of Sales at Ethos Laboratories
with additional oversight of marketing, sales operations and corporate
sales training. Prior to Ethos Labs, he held senior management roles at
Theragen and DJO Global. Mike resides in Charlotte, North Carolina,
USA.
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Material Business Risks
The Group has identified the below specific risks that could
impact upon its future prospects.
Commercialisation Risk
The Company is relying on its ability and that of its partners to
develop and commercialise its products and services in order
to create revenue. Any products or services developed by the
Company will require extensive clinical testing, regulatory
approval, 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
sales, marketing,
manufacturing and distribution.
requirements
regulatory
for
A failure to successfully develop and commercialise these
products and services could lead to a loss of opportunities and
adversely impact on the Company’s operating results and
financial position. In addition, for those countries where the
Company may commercialise its products or services through
distributors or other third parties, the Company will rely heavily
on the ability of its partners to effectively market and sell its
products and services.
Further, even
if the Company does achieve market
commercialisation of any of its products and services, it may
not be able
it or otherwise achieve
commercialisation to a degree that would support the ongoing
viability of its operations.
sustain
to
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.
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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.
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Remuneration Report
REMUNERATION REPORT (Audited)
The Remuneration Report is set out under the following main headings:
A
B
C
D
E
F
G
H
Principles Used to Determine the Nature and Amount of Remuneration
Remuneration Governance
Details of Remuneration
Directors' Agreements
Share-Based Compensation
Additional Information
Additional disclosure relating to key management personnel
Transactions with the key management personnel
The information provided in this Remuneration Report has been audited as required by Section 308(3C) of the Corporations Act 2001.
'The 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)
•
Dr Richard Lipscombe
Managing Director
• Mr Ian Roger Moore
Non-Executive Director (independent)
• Mr Paul House
Non-Executive Director (independent)
•
•
Dr Robyn Elliott
Jacqueline Gray
Non-Executive Director (independent)
Chief Financial Officer
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 and 2022 Annual General Meetings.
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 2023:
Fixed
$
297,504
"At Risk"
$
-
Total
$
297,504
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REMUNERATION REPORT (continued)
A. Principles Used to Determine the Nature and Amount of Remuneration (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.
(iii)
Executive Remuneration Mix
The following table sets out the Key Management Personnels' remuneration mix for the year ended 30 June 2023:
Fixed
$
730,272
"At Risk"
$
17,026
Total
$
747,298
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:
•
•
•
•
Competitiveness and reasonableness
Acceptability to shareholders
Performance linkage / alignment of executive compensation
Transparency
Share price at financial year end ($A)
Total dividends declared (cents per share)
Basic loss per share (cents per share)
2019
$
0.35
-
( 0.03)
2020
$
0.42
-
( 0.02)
2021
$
0.93
-
( 0.03)
2022
$
0.93
-
( 0.05)
2023
$
0.86
-
( 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 2022 Annual General Meeting, more than 75% of votes cast were in favour of adoption of the Company’s remuneration report for
the 2022 financial year. The Company did not receive any comments at the Annual General Meeting on its remuneration report.
34
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:
2023
Non-Executive Directors
Ian Roger Moore
Paul House
Neville Gardiner
Dr Robyn Elliott
Executive Director
Dr Richard Lipscombe
Other Key Management
Personnel
Jacqueline Gray
TOTAL
2022
Non-Executive Directors
Terry Sweet (ii)
Ian Roger Moore
Paul House
Neville Gardiner (iii)
Dr Robyn Elliott (iii)
Executive Director
Dr Richard Lipscombe
Other Key Management
Personnel
Vikesh Malik (iv)
Jacqueline Gray (v)
Cash Salary and Fees
Post-Employment
Benefits
Other Leave
Benefits
Share Based
Benefits
Share Based
Benefits
Directors Fees
Salary
Bonus
Superannuation
Leave
Benefits
Equity-settled
options
Equity-settled
rights
$
$
$
$
$
$
Total
$
Performance
Related
%
45,000
45,000
75,000
45,000
-
-
-
-
-
-
-
-
-
4,725
7,875
4,725
-
350,000
50,000
42,000
-
-
-
-
-
-
-
-
46,786
23,393
-
-
-
-
-
-
45,000
49,725
129,661
73,118
0%
0%
0%
0%
442,000
13%
-
210,000
210,958
560,958
25,000
75,000
24,776
84,101
1,218
1,218
20,290
90,469
23,056
305,298
23,056 1,044,802
15%
10%
$
$
$
$
$
$
$
%
24,167
43,750
43,750
46,875
28,125
-
-
-
-
-
-
265,383
-
-
207,692
180,630
-
-
-
-
-
-
-
-
-
2,417
-
4,375
4,687
2,813
-
-
-
-
-
-
-
-
124,392
62,197
30,000
34,617
-
-
-
-
-
-
-
26,584
43,750
48,125
175,954
93,135
330,000
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
TOTAL
186,667
653,705
(i)
(ii)
(iIi)
(iv)
(v)
For the financial year ended 30 June 2023, the role of Chief Financial Officer met the criteria under the definition of Key Management
Personnel as defined in AASB 124 and section 308(3C) of the Corporations Act 2001 .
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.
0%
0%
0%
0%
0%
0%
17%
6%
6%
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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.
Neville Gardiner (Non-Executive 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
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
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
$350,000
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)
Jacqueline Gray (Chief Financial Officer)
Particulars
Term of the agreement
Base remuneration
Superannuation
Bonus payable
Leave entitlements
Termination of agreement
Terms
No fixed term
$210,957
Statutory rate
At the absolute discretion of the Board
20 days annual leave
3 months notice
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REMUNERATION REPORT (continued)
E. Share-based Compensation
The following options were exercised during the year:
Director
Terry Sweet (i) (ii)
Ian Roger Moore (i)
Paul House (i)
Total
Number of
Options
200,000
100,000
100,000
400,000
Grant Date
Expiry Date
Exercise Price
Fair Value at
Exerxcise Date (i)
22-Nov-18
22-Nov-18
22-Nov-18
22-Nov-22
22-Nov-22
22-Nov-22
$
0.67
0.67
0.67
$
45,325
22,662
22,663
90,650
(i)
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 that
date. No amounts are unpaid on any shares issued on the exercise of options.
(ii) Terry Sweet retired as a Director on 25 November 2021.
The following Director C and Director D options were issued following receipt of shareholder approval on 24 November 2022:
Director
Number of
Options
Service
Commencement
Date
Expiry Date
Exercise Price
Fair Value at
Grant Date
Neville Gardiner
Dr Robyn Elliott
Director C option (i)
Director D option (ii)
Total
Director C option (i)
Director D option (ii)
Total
250,000
250,000
500,000
125,000
125,000
250,000
15-Nov-21
15-Nov-21
23-Nov-25
23-Nov-26
15-Nov-21
15-Nov-21
23-Nov-25
23-Nov-26
$
1.32
1.76
1.32
1.76
$
84,097
87,081
171,178
42,049
43,540
85,589
(i)
(ii)
Director C options has an exercise price that is at a 50% premium to the volume-weighted average market price (VWAP) for shares for
the twenty (20) trading days immediately prior to the date of the issue and will expire three (3) years from date of issue.
Director D options has an exercise price that is at a 100% premium to the volume-weighted average market price (VWAP) for shares
for the twenty (20) trading days immediately prior to the date of the issue and will expire four (4) years from date of issue.
REMUNERATION REPORT (continued)
E. Share-based Compensation (continued)
Fair Value of Director C and Director D Options
These previously unissued Director C and Director D options were offered on 15 November 2021 to newly appointment Non-
Executive Directors Neville Gardiner and Dr Robyn Elliot as a reward and incentive, were subject to shareholder approval, and
were provisionally valued at 30 June 2022. The issue of these Director and C and D options was approved by the shareholders at
the AGM held on 24 November 2022, and they have been vested and revalued at the issue date as follows:
Particulars
Number of options
Valuation date
Expiry date
Underlying share price used
Exercise price
Risk-free rate
Volatility
Dividend yield
Valuation per Option
Director C
375,000
24 November 2022
23 November 2025
$0.850
$1.320
3.24%
75%
nil
$0.3364
Director D
375,000
24 November 2022
23 November 2026
$0.850
$1.76
3.29%
75%
nil
$0.3483
The revised value placed on these Director C options is $126,146 and the amount allocated to the share based payment expenses
in the statement of profit or loss and other comprehensive income in the period ended 30 June 2023 is $33,843.
The revised value placed on these Director D options is $130,622 and the amount allocated to the share based payment expenses
in the statement of profit or loss and other comprehensive income in the period ended 30 June 2023 is $36,335.
The Company has used the Black Scholes Model to value the Director C and Director D options.
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 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 2023 is $20,290.
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REMUNERATION REPORT (continued)
E. Share-based Compensation (continued)
Performance Rights - Chief Financial Officer
Chief Financial Officer (CFO)
61,574
73,095
23,056
33,504
2023
Rights
2022
Rights
2023
$
2022
$
Class of performance rights
Number issued to
Chief Financial Officer (CFO)
Tranche 1 performance rights issued
Performance rights exercised
Tranche 2 performance rights issued
Milestone C performance rights issued
11,521
( 11,521)
11,574
50,000
61,574
Tranche 1 performance rights are subject to continuous service under the Employment Contract, and were issued on 20 July 2021
vested on 1 July 2022 and exercised on 22 August 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. These rights were exercised subsequent to balance date. Refer to note 24.
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 CFO (referred to as
executive) does 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 $74,191 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 2023 is $23,056 (30 June 2022: $33,504).
REMUNERATION REPORT (continued)
F. Additional disclosure relating to key management personnel
Shareholding
The number of shares in the Company held during the year by each Director and other members of Key Management Personnel of the
consolidated entity, including their personally related parties, is set out below:
Directors and Key Management
Personnel
Balance at the start
of the year
Received as part of
remuneration
Shares Received on
exercise of options
and performance
rights
Other changes
during the year (i)
Balance at the end
of the year
2023
Dr Richard Lipscombe
Ian Roger Moore
Paul House
Neville Gardiner
Robyn Elliot
Jacqueline Gray
19,048,704
817,000
818,864
-
-
-
-
-
-
-
-
-
-
100,000
100,000
-
-
11,521
-
58,824
117,647
117,647
-
41,000
19,048,704
975,824
1,036,511
117,647
-
52,521
(i) Reflects sales and purchases of shares in the market by key management personnel and/ or their related parties.
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
of the year
Received as part of
remuneration
Shares Received on
exercise of options
Balance at the end
of the year (vested)
Balance at the end
of the year
(unvested)
2023
Terry Sweet
Dr Richard Lipscombe
Ian Roger Moore
Paul House
Neville Gardiner (i)
Dr Robyn Elliott (i)
Jacqueline Gray
200,000
-
100,000
100,000
500,000
250,000
150,000
-
-
-
-
-
-
-
( 200,000)
-
( 100,000)
( 100,000)
-
-
-
-
-
-
-
-
-
50,000
-
-
-
-
500,000
250,000
100,000
(i) Director C and Director D options were granted on 15 November 2021 to Non-Executive Directors Neville Gardiner and Dr Robyn Elliot as
an effective and efficient method of supplementing Non-Executive Director's fees. The issue of these Director C and Director D options was
approved by the shareholders at the AGM on 24 November 2022, and have been revalued at the issue date of 24 November 2022.
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REMUNERATION REPORT (continued)
F. Additional disclosure relating to key management personnel
Rights holding
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:
Directors and Key Management
Personnel
Balance at the start
of the year
Received as part of
remuneration
Shares Received on
exercise of
performance rights
Balance at the end
of the year (vested)
Balance at the end
of the year
(unvested)
2023
Jacqueline Gray
CFO
73,095
-
( 11,521)
-
61,574
G. 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 2023.
THIS IS THE END OF THE AUDITED REMUNERATION REPORT
SHARES UNDER OPTION
Unissued ordinary shares of the Company under option at the date of this report are as follows:
Date options granted
Expiry date
Exercise price
Number under option
20/07/2021
20/07/2021
24/11/2022
24/22/2022
1/06/2024
12/07/2024
23/11/2025
23/11/2026
$1.44
$1.16
$1.32
$1.76
300,000
150,000
375,000
375,000
1,200,000
The options are exercisable at any time before the expiry date.
The number of options that were converted into shares during the year ended 30 June 2023 was 5,790,279 (30 June 2022: 500,000).
The number of options that lapsed during the year ended 30 June 2023 was 500,000 (30 June 2022: nil).
INSURANCE OF OFFICERS
During the year ended 30 June 2023, 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
2023 were in respect to consulting and amounted to $11,680 (30 June 2022: $16,310).
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 on page 44.
This report is made in accordance with a resolution of the Directors.
Neville Gardiner
Chairman
Perth, Western Australia
Dated 22 August 2023
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Auditor’s Independence Declaration
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
DECLARATION OF INDEPENDENCE BY ASHLEIGH WOODLEY TO THE DIRECTORS OF PROTEOMICS
INTERNATIONAL LABORATORIES LIMITED
As lead auditor of Proteomics International Laboratories Limited for the year ended 30 June 2023, I
declare that, to the best of my knowledge and belief, there have been:
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Proteomics International Laboratories Limited and the entities it
controlled during the period.
Ashleigh Woodley
Director
BDO Audit (WA) Pty Ltd
Perth
22 August 2023
Financial
Statements
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia
Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO
International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability
limited by a scheme approved under Professional Standards Legislation.
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CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME FOR THE YEAR ENDED 30 JUNE 2023
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2023
Revenue from continuing operations:
- Services
- Research grants and other income
Other income
- Interest income
- Research and development tax incentive
- Profit on sale of plant & equipment
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
Loss (gain) in foreign currency translation
Other expenses
Total Expenditure
Notes
5
2(a)
2(a)
2(b)
2(c)
1(g), 12(d)
2(b)
Consolidated
Entity
2023
$
Consolidated
Entity
2022
$
730,340
593,328
136,505
1,848,832
11,857
3,320,862
4,784,670
324,374
529,529
268,532
-
-
1,903,797
720,716
313,185
173,120
8,536
528,713
9,555,172
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
(Loss) before income tax
( 6,234,310)
( 4,972,960)
Income tax (expense) / benefit
3(a)
-
-
(Loss) after income tax from continuing operations
( 6,234,310)
( 4,972,960)
Total comprehensive (loss) for the year attributable to:
Equity holders of Proteomics International Laboratories Ltd
Non-controlling interests
Basic (loss) per share for the year attributable to the members of
Proteomics International Laboratories Ltd
Diluted (loss) per share
23
( 6,176,573)
( 57,737)
( 6,234,310)
( 0.05)
N/A
( 4,972,960)
-
( 4,972,960)
( 0.05)
N/A
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Other assets
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Property, plant and equipment
Other assets
Right-of-use assets
Intangible assets
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Deferred income
Lease liabilities
Provisions
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Deferred income
Lease liabilities
Provisions
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated (losses)
Parent Entity Interest
Non-controlling Interest
TOTAL EQUITY
Consolidated
Entity
2023
$
Consolidated
Entity
2022
$
Notes
4
6
7
8
9
5
10
5
10
11
13
14
6,027,315
145,730
2,153,812
8,326,857
1,620,852
59,563
67,095
1,012
1,748,522
10,075,379
580,041
368,756
30,541
123,468
1,102,806
582,494
33,547
33,276
649,317
1,752,123
2,111,514
440,125
1,810,513
4,362,152
973,391
59,563
-
1,012
1,033,966
5,396,118
1,345,708
355,977
-
-
1,701,685
133,920
-
166,671
300,591
2,002,276
8,323,256
3,393,842
30,180,264
1,828,310
( 23,627,581)
8,380,993
( 57,737)
8,323,256
19,340,914
1,682,998
( 17,630,070)
3,393,842
-
3,393,842
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying
notes.
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
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Proteomics International Laboratories Ltd
Proteomics International Laboratories Ltd
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
CONSOLIDATED STATEMENT OF CASH FLOW
FOR THE YEAR ENDED 30 JUNE 2023
CONSOLIDATED ENTITY 30 JUNE 2023
Issued Capital
Ordinary
Reserves
(Accumulated
Losses)
Non-controlling
interest
Total Equity
Notes
$
$
$
$
$
Balance at 1 July 2022
19,340,914
1,682,998
( 17,630,070)
(Loss) for the year attributable to members
of the parent entity
(Loss) attributable to non-controlling interest
Other comprehensive income/(loss) for the year
Total comprehensive (loss) for the year
-
-
-
-
-
-
-
-
( 6,176,573)
-
( 6,176,573)
-
-
3,393,842
( 6,176,573)
( 57,737)
-
( 57,737)
( 57,737)
-
( 6,234,310)
Transactions with Equity Holders in
their capacity as Equity Holders
Equity issued net of share issue costs
Conversion of options
Share based payments expense
11
11
1(g), 12(d)
7,334,924
3,504,426
-
10,839,350
-
( 179,062)
324,374
145,312
-
179,062
-
-
-
-
-
-
7,334,924
3,504,426
324,374
11,163,724
Balance as at 30 June 2023
30,180,264
1,828,310
( 23,627,581)
( 57,737)
8,323,256
CONSOLIDATED ENTITY 30 JUNE 2022
Balance at 1 July 2021
19,095,227
1,171,305
( 12,657,110)
7,609,422
Notes
Issued Capital
Ordinary
$
Reserves
$
(Accumulated
Losses)
$
Total Equity
$
(Loss) for the year
Other comprehensive income for the year
Total comprehensive (loss) for the year
Transactions with Equity Holders in
their capacity as Equity Holders
Equity issues net of share issue costs
Share based payments expense
-
-
-
-
-
-
( 4,972,960)
-
( 4,972,960)
( 4,972,960)
-
( 4,972,960)
11
1(g), 12(d)
245,687
-
- 511,693
245,687 511,693
-
-
-
245,687
511,693
757,380
Balance as at 30 June 2022
19,340,914
1,682,998
( 17,630,070)
3,393,842
Cash flows from operating activities
Receipts from customers, grants and other income
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 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
Loans to employees
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
2023
$
Consolidated
Entity
2022
$
Notes
2,041,098
( 9,555,415)
-
109,504
1,711,902
1,691,901
( 6,474,765)
( 2,693)
5,438
1,240,156
4
( 5,692,911)
( 3,539,963)
52,779
( 1,217,910)
( 1,165,131)
-
( 129,458)
( 129,458)
7,345,753
3,493,597
( 62,500)
( 3,007)
10,773,843
-
245,147
-
( 69,046)
176,101
2,111,514
3,915,801
6,027,315
5,604,834
( 3,493,320)
2,111,514
4
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
The above Consolidated Statement of Cash Flow should be read in conjunction with the accompanying notes.
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Proteomics International Laboratories Ltd
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
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 2023 was
authorised for issue in accordance with a resolution of the Directors on the 22nd of August 2023.
The Company is a public company limited by shares, incorporated and domiciled in Australia, and whose shares are traded on the Australian Securities
Exchange.
The nature of the operations and principal activities of the Company are described in the Director’s report above.
(a)
Basis of preparation
The principle accounting policies adopted for the preparation of financial statements are set out below. These accounting policies have been applied
consistently to all periods presented unless otherwise stated.
(i)
Statement of compliance
These general purpose financial statements have been prepared in accordance with the requirements of the Corporations Act 2001 , Australian
Accounting Standards and Interpretations issued by the Australian Accounting Standards Board and the Corporations Act 2001 .
The Company is a for profit entity for the purpose of preparing the financial statements.
The financial statements of the Company also comply with the International Financial Reporting Standards (IFRS) as issued by the International
Accounting Standards Board (IASB).
(ii)
Basis of measurement
The financial statements have been prepared on an accruals basis and are based on historical cost other than investments which are recorded at fair
value. The financial statements are presented in Australian dollars and all values are rounded to the nearest dollar unless otherwise stated.
(iii)
Going Concern
The financial statements have been prepared on a going concern basis, which contemplates continuity of normal business activities and the realisation
of assets and settlement of liabilities in the ordinary course of business.
(b)
Segment Information
The preparation of the financial statements requires the use of accounting estimates and judgements which, by definition, will seldom equal the actual
results. This note provides an overview of the areas that involve a degree of judgement or complexity in preparing the financial information. Facts and
circumstances may come to light after the event which may have significantly varied the assessment used, and which may result in a materially
different value being recorded at the time of preparing these financial statements.
(i)
(ii)
(iii)
(iv)
(v)
Deferred taxes
Deferred tax assets have not been brought to account as it is not considered probable that the Company will make taxable profits over the next
12 months. The Company will make a further assessment at the next reporting period.
Impairment of assets
The Company assesses the impairment of assets at each reporting date by evaluating conditions specific to the asset that may lead to
impairment. The assessment of impairment is based on the best estimate of future cash flows available at the time of preparing the report.
However, facts and circumstances may come to light in later periods which may change this assessment if these facts had been known at the
time.
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.
AASB 8 - Operating Segments, requires a management approach under which segment information is presented on the same basis as that used for
internal reporting purposes. This is consistent to the approach used for the comparative period.
(d)
Principles of consolidation
Operating segments are reported in a uniform manner which is internally provided to the chief operating decision maker. The chief operating decision
maker has been identified as the Board of Directors (the Board).
An operating segment is a component of the organisation that engages in business activity from which it may earn revenues or incur expenditure,
including those that relate to transactions with other organisation components. Each operating segment’s results are reviewed regularly by the Board
when making decisions about resources to be allocated to the segments and assess its performance, and for which discrete financial information is
available.
The Board monitors the operations of the Company as one single segment. The actual to budget items and a detailed profit or loss are reported to the
Board to assess the Company's performance.
The Board has determined that strategic decision making is facilitated by evaluation of the operations of the legal parent and subsidiaries, which
represent the operational performance of the Company’s revenues and the research and development activities as well as the finance, treasury,
compliance and funding elements.
Subsidiaries:
Subsidiaries are all entities (including structured entities) over which the Company has control. The Company controls an entity when it is exposed to,
or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities
of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Company. They are deconsolidated from the date
that control ceases.
Intercompany Transactions:
Intercompany transactions, balances and unrealised gains on transactions between group companies are eliminated. Unrealised losses are also
eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed
where necessary to ensure consistency with the policies adopted by the Company.
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Proteomics International Laboratories Ltd
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
(e)
Revenue recognition and other income
Revenue is recognised when or as the Company transfers control of goods or services to a customer, at the amount to which the Company expects to
be entitled.
The following is a description of the principal activities from which the Company generates its revenue and other income:
(i)
(ii)
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 2023 amounted to $1,711,902.
Revenue from contracts with customers - Commercialisation 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.
(f)
Employee Benefits
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
(h)
Foreign currency translation and transactions
Both the functional and presentation currency of the Company is in Australian dollars.
Transactions in foreign currencies are initially recorded in the functional currency by applying the exchange rates ruling at the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the balance date.
(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)
(ii)
When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a
business combination and that, at the time of the transaction, affects neither the accounting nor taxable profits; or
When the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and the timing of the reversal
can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be
available to utilise those temporary differences and losses.
The carrying amount of recognised and unrecognised deferred tax assets are reviewed each reporting date. Deferred tax assets recognised are reduced to
the extent that it is no longer probable that future taxable profits will be available for the carrying amount to be recovered. Previously unrecognised
deferred tax assets are recognised to the extent that it is probable that there are future taxable profits available to recover the asset.
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.
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.
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.
(g)
Share based payments
Share-based payments compensation benefits are provided to employees, Directors and consultants via the issues of shares, performance rights and/or
options.
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.
(j)
Joint Arrangements
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:
it is expected to be realised or intended to be sold or consumed in normal operating cycle;
(i)
(ii) it is held primarily for the purpose of trading;
(iii) it is expected to be realised within twelve months after the reporting period; or
(iv)
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:
it is expected to be settled in normal operating cycle;
(i)
(ii) it is held primarily for the purpose of trading;
(iii) it is due to be settled within twelve months after the reporting period; or
(iv)
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.
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Proteomics International Laboratories Ltd
Proteomics International Laboratories Ltd
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
(l)
Cash and cash equivalents
(o)
Leases
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.
(n)
Property, plant and equipment
The Company's accounting policy for plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that is directly
attributable to the acquisition of the items. Cost may also include transfers from equity of any gains or losses on qualifying cash flow hedges on foreign
currency purchases of property, plant and equipment.
Subsequent costs are included in the carrying amount of an asset or recognised as a separate asset, as appropriate, only when it is probable that future
economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any
component accounted for as a separate asset is derecognised when replaced.
Depreciation is calculated on a diminishing value basis or 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.
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
Straight-line operating lease expense recognition is replaced with a depreciation charge for the right-of-use assets (included in depreciation expense) and
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
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.
(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.
(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.
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.
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Proteomics International Laboratories Ltd
Proteomics International Laboratories Ltd
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
(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.
(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.
2. LOSS FOR THE YEAR
Notes
Loss for the full year included the following:
(a) Research & Development Tax incentive (i)
Grants received
Other income
(b) Other expenses (income)
Unrealised loss (gain) in foreign currency translation
Realised loss (gain) in foreign currency translation
Loss (gain) on sale of plant and equipment
(c) Employee and labour expenses
Salaries and wages
Other personnel costs
Superannuation
(Decrease) increase in leave liabilities
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Consolidated
Entity
2023
$
Consolidated
Entity
2022
$
1,848,832
413,515
179,813
1,711,903
100,000
129,794
430
8,106
( 11,857)
( 59)
( 760)
-
3,809,863
555,355
427,364
( 7,912)
4,784,670
3,000,272
473,351
297,461
76,201
3,847,285
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority.
Share based payments expense
1(g), 12(d)
324,374
511,693
5,109,044
4,358,978
(v)
New Accounting Standards not yet Mandatory
Certain new/amended accounting standards and interpretations have been issued but are not mandatory for financial years ended 30 June 2023 and have
not been earlier adopted in preparing the financial statements. 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.
(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 estimated
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 2023, 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 2024.
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%
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
Expected credit losses
- Reduction in loss for tax credit
Consolidated
Entity
2023
$
Consolidated
Entity
2022
$
-
-
-
-
( 6,234,310)
( 4,972,960)
( 1,558,578)
( 1,243,240)
81,094
( 462,208)
28,494
1,911,198
-
127,923
( 427,976)
76,170
1,467,123
-
56
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
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%
Notes
Consolidated
Entity
2023
$
Consolidated
Entity
2022
$
8,805,801
2,201,450
5,411,199
1,352,800
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
Reconciliation of loss after income tax to net cash flows from operating activities
Loss for the year
Non-cash items:
Profit on sale of assets
Depreciation
Unrealised foreign currency loss (gain)
Share based payments expense
Financing Activities:
Share issue from employee loans
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
1(g), 12(d)
Refer to Note 15 for further information on risk exposure.
( 18,525)
( 30,596)
8,805,801
8,756,680
9,270
116,723
5,411,199
5,537,192
236,859
5,790,456
6,027,315
1,111,514
1,000,000
2,111,514
( 6,234,310)
( 4,972,960)
( 11,858)
529,529
430
324,374
416,861
( 59)
511,693
62,500
-
294,395
( 231,922)
( 416,123)
( 9,926)
( 5,692,911)
( 139,077)
( 438,148)
1,005,526
76,201
( 3,539,963)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
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
Licensing Income
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 Consolidated
Entity
2023
$
14,881
715,459
730,340
-
730,340
730,340
591,049
90,867
12,556
35,750
118
730,340
Entity
2022
$
-
1,489,323
1,489,323
-
1,489,323
1,489,323
1,217,411
155,224
108,469
6,183
2,036
1,489,323
368,756
582,494
951,250
355,997
133,920
489,917
(i) Deferred revenue in 2023 primarily relates to funds received under the collaboration agreement with University of Western
Australia. Refer Note 1(j)
(ii) Deferred revenue in 2022 primarily relates to funding secured to support the manufacture of the PromarkerD test in Australia.
6. TRADE AND OTHER RECEIVABLES
Trade receivables
less: Expected credit losses (c)
Other receivables - GST Receivable
129,838
( 34,617)
50,509
145,730
438,102
-
2,023
440,125
(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 $34,617 as at 30 June 2023 (nil as at 30 June 2022).
(d)
Refer to Note 15 for further information on risk exposure.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
7. OTHER ASSETS
Current:
Research and development tax incentive (i)
Patent Fee - Advances
Loans to employees
Accrued Income
Prepayments (ii)
(i) refer to Note 2(a)
(ii) comprises prepaid insurance, subscriptions and equipment maintenance agreement.
8. 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.
9. TRADE AND OTHER PAYABLES
Current:
Trade payables
Other payables
Employee Benefits
Consolidated
Entity
Consolidated
Entity
2023
$
1,848,832
32,212
62,500
90,984
119,284
2,153,812
2022
$
1,711,903
7,860
-
7,000
83,750
1,810,513
3,741,625
( 2,120,773)
1,620,852
2,576,492
( 1,603,101)
973,391
973,391
1,217,910
( 40,920)
( 529,529)
1,620,852
1,196,876
129,463
-
( 352,948)
973,391
154,305
225,593
200,143
580,041
517,047
631,630
197,031
1,345,708
(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 15 for further information on risk exposure.
10. PROVISIONS
Current:
Employee benefits - long service leave
Non-current
Employee benefits - long service leave
123,468
-
33,276
166,671
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
11.
ISSUED CAPITAL
Ordinary Shares
Total consolidated issue capital
Movement in share capital - 30 June 2023
Date
Details
01/07/2022 Opening balance
11/07/2022 Exercise of performance rights (i)
19/08/2022 Issue of shares (ii)
22/08/2022 Exercise of performance rights (iii)
22/11/2022 Exercise of options (iv)
24/11/2022 Issue of shares (v)
11/01/2023 Exercise of options (vi)
19/01/2023 Exercise of options (vi)
19/01/2023 Exercise of options (vii)
27/01/2023 Exercise of options (vi)
27/01/2023 Exercise of options (viii)
27/01/2023 Exercise of options (ix)
07/02/2023 Exercise of options (vi)
14/02/2023 Exercise of options (vi)
17/03/2023 Exercise of options (vi)
27/03/2023 Exercise of options (vi)
01/05/2023 Exercise of options (vii)
Less: Transaction costs
30/06/2023 Closing balance
2023
No.
2022
No.
2023
$
2022
$
120,978,992
105,705,875
30,180,264
19,340,914
No. of Shares
30-Jun-23
105,705,875
47,778
9,117,647
23,295
400,000
294,118
50,000
50,000
175,000
150,000
1,100,000
1,100,000
50,000
300,000
98,112
2,092,167
225,000
-
120,978,992
Amount
$
19,340,914
7,750,000
-
-
268,000
250,000
25,000
25,000
87,500
75,000
825,000
825,000
25,000
150,000
49,056
1,046,084
112,500
( 673,790)
30,180,264
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
(ix)
Unquoted Class A performance rights to employees.
Issued to Australian-based institutions, and sophisticated and professional investors.
Unquoted performance rights to key management personnel.
Director B options exercised by Terry Sweet, Ian Roger Moore and Paul House.
Issued to Director Neville Gardiner, Ian Roger Moore and Paul House following receipt of shareholder approval on
24 November 2022.
Corporate Advisors Alto Capital, Adelaide Equity Partners and related parties exercised 2,790,279
Corporate Advisors Alto Capital, Adelaide Equity Partners and their related parties exercised 2,790,279 options.
Employees exercised 400,000 unquoted employee options pursuant to an Employee Incentive Option Plan.
Consultant Candor Advisory and related parties exercised 1,100,000 options.
Consultant Candour Advisory and their related parties exercised 1,100,000 options.
Consultant Euroz Hartleys Securities Limited exercised 1,100,000 options.
ti
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
12. OPTIONS (continued)
Movement in options issued
As at 1 July
Exercise of options 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
Options lapsed during the period
Issued during the period
Issued during the period
Issued during the period
Issued during the period
As at 30 June
2023
2022
Average
exercise
price
$0.66
$0.67
$0.50
$0.50
$0.75
$0.75
$1.75
$1.44
$1.16
$1.32
$1.76
$0.97
Number of
Options
7,990,279
( 400,000)
( 2,790,279)
( 400,000)
( 1,100,000)
( 1,100,000)
( 500,000)
-
-
375,000
375,000
2,450,000
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
Issued options outstanding at the end of the year have the following expiry date and exercise price:
Grant Date
Expiry Date
Exercise Price No. Options
18/08/2020 (i)
20/07/2021 (ii)
20/07/2021 (iii)
24/11/2022 (iv)
24/11/2022 (iv)
18/08/2023
1/06/2024
12/07/2024
23/11/2025
23/11/2026
$0.50
$1.44
$1.16
$1.32
$1.76
1,250,000
300,000
150,000
375,000
375,000
(i)
(ii)
(iii)
(iv)
Unlisted - issued to consultant for services provided.
Unlisted - issued to Chief Commercialisation Officer under Employee Incentive Options Plan.
Unlisted - issued to Chief Financial Officer under Employee Incentive Options Plan.
Unlisted - Director C options issued to Directors - Neville Gardiner and Dr Robyn Elliot for nil consideration and
issued as a reward and incentive following receipt of shareholder approval on 24 November 2022.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
11.
ISSUED CAPITAL (continued)
Movement in share capital - 30 June 2022
Details
Date
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
No. of Shares
30-Jun-22
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
(i)
(ii)
Corporate Advisors Alto Capital and Adelaide Equity Partners exercised 100,000 options.
Director A options exercised by Terry Sweet, Ian Roger Moore and Paul House.
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.
12. 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 $1.32 each (x)
Options exercisable at $1.76 each (x)
Total issued options
2023
No. of Options
2022
No. of Options
-
-
-
1,250,000
-
-
-
300,000
150,000
375,000
375,000
2,450,000
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
(i)
(ii)
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 provided.
(iii)
Unlisted - employee options issued to employees nil consideration under an Employee Incentive Option Plan.
(iv)
(v)
Unlisted - issued to consultants for services provided.
Unlisted - issued to consultant - Euroz Hartleys Securities Limited for services provided.
(vi)
Unlisted - issued to consultant - Candour Advisory Pty Ltd for services provided.
(vii)
(viii)
(ix)
(x)
Unlisted - issued to consultant - Euroz Hartleys Securities Limited for services provided.
Unlisted - issued to employee under Employee Incentive Options Plan.
Unlisted - issued to key management personnel (CFO) under Employee Incentive Options Plan.
Unlisted - Director C and Director D options issued to Directors - Neville Gardiner and Dr Robyn Elliot for nil consideration and issued as a
reward and incentive following receipt of shareholder approval on 24 November 2022.
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Proteomics International Laboratories Ltd
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
12. OPTIONS (continued)
12. OPTIONS (continued)
(a) Fair Value of Director C and Director D Options
These Director C and Director D options were offered on 15 November 2021 to newly appointed Non-Executive Directors
Neville Gardiner and Dr Robyn Elliot as a reward and incentive and previously valued at 30 June 2022. The issue of these
Director C and Director D options was approved by the shareholders at the AGM held on 24 November 2022, and these have
been revalued at the issue date as follows:
Particulars
Number of options
Valuation date
Expiry date
Underlying share price used
Exercise price
Risk-free rate
Volatility
Dividend yield
Valuation per Option
Director C
375,000
24 November 2022
23 November 2025
$0.85
$1.32
3.24%
75%
nil
$0.3364
Director D
375,000
24 November 2022
23 November 2026
$0.85
$1.76
3.29%
75%
nil
$0.3483
The revised value placed on the Director C options is $126,146 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 2023 is $33,843
The revised value placed on the Director D options is $130,622 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 2023 is $36,335.
The Company has used the Black Scholes Model to revalue the Director C and Director D options.
(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 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 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 2023 is $20,290 (30 June 2022: is $39,541).
(c) 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:
Particulars
Number of 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 Employee Incentive 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 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 2023 is $35,276 (30 June 2022: $68,228). Options not exercised shall lapse on
the expiry date. Options will immediately lapse if employment ceases prior to the vesting date
(d) Share based payments expense
Share based payments expense comprising:
Director C and Director D options - refer note 12(a)
CFO options - refer note 12(b)
Employee options 12(c)
CFO performance rights - refer note 13(a)
Performance rights to employees - refer note 13(b)
13. RESERVES
Share based payments reserve comprising:
(a) Unlisted options (i)
Director A & B
Director C & D
CFO
Employees (ii)
Payments to consultants
(b) Unlisted performance rights
CFO
Employees
Consolidated
Entity
Consolidated
Entity
2023
$
2022
$
70,178
20,290
35,276
23,056
175,574
324,374
-
256,767
59,831
312,081
783,666
56,560
359,405
1,828,310
186,589
39,541
68,228
33,504
183,831
511,693
179,062
186,589
39,541
276,805
783,666
33,504
183,831
1,682,998
(i) Refer to Note 12 for further information.
(ii) Includes Employee Incentive Options issued to Chief Commercialisation Officer. Refer to note 12(c).
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
13. RESERVES (continued)
(a) Performance Rights issued to CFO (i)
Chief Financial Officer (CFO)
Class of performance rights
Tranche 1 performance rights issued
Tranche 2 performance rights issued
Milestone C performance rights
(b) Performance Rights issued to Employees (i)
Class A, B & C performance rights
FY23 Class A, B & C performance rights
Tranche 1 & 2 and Milestone performance rights (ii)
Class of performance rights
Class A performance rights
Class B performance rights
Class C performance rights
FY23 Class A performance rights
FY23 Class B performance rights
FY23 Class C performance rights
Tranche 1 performance rights (ii)
Tranche 2 performance rights (ii)
Milestone A performance rights (ii)
Milestone B performance rights (ii)
Milestone C performance rights (ii)
(i) Refer to the following page for explanation of terms and conditions of these rights issued.
(ii) Includes performance rights issued to Chief Commercialisation Officer.
2023
Rights
2022
Rights
61,574
73,095
2023
$
56,560
2022
$
33,504
Number
Issued
Number
Exercised
Number
Lapsed
Number
Remaining
11,521
11,574
50,000
73,095
( 11,521)
-
-
( 11,521)
-
-
-
-
-
11,574
50,000
61,574
2023
Rights
65,876
134,253
211,774
411,903
2022
Rights
143,334
-
223,548
366,882
2023
$
133,663
63,987
161,755
359,405
2022
$
98,980
-
84,851
183,831
Number
Issued
Number
Exercised
Number
Lapsed
Number
Remaining
47,778
47,778
47,778
143,334
55,898
55,898
55,898
167,694
11,774
11,774
50,000
50,000
100,000
223,548
( 47,778)
-
-
( 47,778)
-
-
-
-
( 11,774)
-
-
-
-
( 11,774)
-
12,800
16,880
29,680
8,495
12,473
12,473
33,441
-
-
-
-
-
-
-
34,978
30,898
65,876
47,403
43,425
43,425
134,253
-
11,774
50,000
50,000
100,000
211,774
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
13. RESERVES (continued)
Each performance right automatically converts into one ordinary share on vesting at an exercise price of nil.
Tranche 1 performance rights are subject to continuous service under the Employment Contract, and were issued on 20 July 2021 to the CCO and
CFO and were exercised on 22 August 2022.
Tranche 2 performance rights are subject to continuous service under the Employment Contract, and were issued on 20 July 2021 to the CCO and
CFO and will vest on 1 July 2023. 23,348 tranche 2 performance rights were exercised subsequent to 30 June 2023. Refer to Note 24
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 to the CCO 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 to the CCO 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 to the CCO and CFO and will lapse after 3 full financial years of the commencement of the
Employment Contract.
CFO (referred to as an executive) does 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 tranche 2 and milestone 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 executive on their rights during the vesting period. The fair value of
the CFO tranche 2 and milestone C performance rights is $62,498 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 2023 is $23,056. The fair value of all other tranche 2 and milestone
performance rights is $214,950 and the amount allocated to the share based payment expense in the statement of profit or loss and other
comprehensive income fore the year ended 30 June 2023 is $76,904.
FY22 Class A performance rights are subject to continuous service under employment contracts, and were issued on 13 December 2021 were
exercised on 11 July 2022.
FY22 Class B performance rights are subject to continuous service under employment contracts, and were issued on 13 December 2021 and will vest
on 30 June 2023. During the year ended 30 June 2023, 12,800 Class B performance rights lapsed due to the conditions becoming incapable of being
satisfied. 34,978 FY22 Class B performance rights were exercised subsequent to 30 June 2023. Refer to note 24.
FY22 Class C performance rights are subject to continuous service under employment contracts, and were issued on 13 December 2021 and will vest
on 30 June 2024. During the year ended 30 June 2023, 16,880 Class C performance rights lapsed due to the conditions becoming incapable of being
satisfied.
The fair value of these Class A, B and C performance rights is $140,519 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 2023 is $34,683.
FY23 Class A performance rights are subject to continuous service under employment contracts, and were issued on 22 November 2022 and will vest
on 30 June 2023. During the year ended 30 June 2023, 8,495 FY23 Class A performance rights lapsed due to the conditions becoming incapable of
being satisfied. FY23 Class A performance rights were exercised subsequent to balance date. Refer to note 24.
FY23 Class B performance rights are subject to continuous service under employment contracts, and were issued on 22 November 2022 and will
vest on 30 June 2024. During the year ended 30 June 2023, 12,473 FY23 Class B performance rights lapsed due to the conditions becoming incapable
of being satisfied. 47,403 FY23 Class A performance rights were exercised subsequent to 30 June 2023. Refer to note 24.
FY23 Class C performance rights are subject to continuous service under employment contracts, and were issued on 22 November 2022 and will vest
on 30 June 2025. During the year ended 30 June 2023, 12,473 FY23 Class C performance rights lapsed due to the conditions becoming incapable of
being satisfied.
The fair value of these FY23 performance rights is $132,883 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 2023 is $63,987.
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For the year ended 30 June 2023
14. ACCUMULATED LOSSES
Opening balance
Loss for the year attributed to ordinary shareholders
Accumulated losses attributed to ordinary shareholders
Loss for the year attributed to non-controlling interests
Closing balance
15. FINANCIAL RISK MANAGEMENT
Consolidated
Entity
2023
$
Consolidated
Entity
2022
$
( 17,630,070)
( 6,176,573)
( 23,627,581)
( 57,737)
( 12,657,110)
( 4,972,960)
( 17,630,070)
-
( 23,685,318)
( 17,630,070)
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
2023
$
Consolidated
Entity
2022
$
6,027,315
145,730
1,848,832
8,021,877
2,111,514
440,125
1,711,903
4,263,542
( 1,331,148)
( 64,088)
( 1,395,236)
( 1,638,574)
-
( 1,638,574)
(a) excludes GST receivables and prepayments.
(b) the receipt of the Research & Development tax incentive will occur in the year ending 30 June 2024.
(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:
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
15. FINANCIAL RISK MANAGEMENT (continued)
(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.
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 2023 Consolidated
Financial assets
Cash and cash equivalents
30 June 2022 Consolidated
Financial assets
Cash and cash equivalents
2.26%
8,021,877
0.26%
4,263,542
All other financial instruments have either a zero coupon rate or a fixed interest rate.
Sensitivity
At 30 June 2023, 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 $15,068 lower / ($15,068) higher, mainly as a result of higher / lower interest
income from cash and cash equivalents (2022 changes of 0.25% / 0.25%: $4,426 lower/ ($4,426) 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
Trade receivables
30 June 2023
30 June 2022
USD
-
JPY
-
USD
6,563
JPY
-
Sensitivity
The sensitivity of the profit or loss to changes in exchange rates arising in mainly USD/AUD denominated financial instruments and the
impact of the other components of equity is listed below:
USD/AUD exchange rate - increase 5%
USD/AUD exchange rate - decrease 15%
Impact on post tax profits
2023
2022
$
$
Impact on equity
2023
$
2022
$
-
-
( 433)
1,601
-
-
( 433)
( 1,601)
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For the year ended 30 June 2023
15. FINANCIAL RISK MANAGEMENT (continued)
(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.
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
2023
$
Consolidated
Entity
2022
$
6,027,315
145,730
1,848,832
8,021,877
2,111,514
440,125
1,711,903
4,263,542
Prudent liquidity risk management implies maintaining sufficient cash balances and access to equity funding.
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.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
15. FINANCIAL RISK MANAGEMENT (continued)
Contractual maturities
of financial liabilities
As at 30 June 2023
Less than 6
Months
$
6 - 12
Months
$
Between
1 and 2 years
$
Between
2 and 5 years
$
Contractual
Cash Flows
$
Carrying
Amount
$
Non-derivatives
Non-interest bearing
Trade payables
Other payables
Interest bearing
Lease Liability
Total non-derivative
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
(d) Fair Value Estimation
154,305
594,349
18,036
766,690
-
-
-
-
-
582,494
154,305
1,176,843
154,305
1,176,843
36,072
36,072
12,987
12,987
-
582,494
67,095
1,398,243
64,088
1,395,236
Less than
6 Months
$
6 - 12
Months
$
Between
1 and 2 years
$
Between
2 and 5 years
$
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
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.
The carrying value less impairment provision of receivables and trade payables are assumed to approximate their fair values due to
their short-term nature.
The fair value of financial assets and liabilities must be estimated for recognition and measurement and for disclosure purposes.
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.
(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 favourable costs of capital or high return on assets. As
the market is constantly changing, the board may issue new shares, sell assets to reduce debt or consider payment of dividends to
shareholders.
The Board seeks to maintain a balance between the higher returns that might be possible with higher levels of borrowings and the
advantages and security afforded by a sound capital position.
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 2023.
The Company is not subject to any externally imposed capital requirements.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
16. CONSOLIDATED ENTITIES
20. DIVIDENDS
Name of entity
Legal Parent
Proteomics International Laboratories Ltd
Accounting Parent
Proteomics International Pty Ltd
Other consolidated entities
Proteomics International USA Inc
Proteomics International (IP) Pty Ltd
OxiDX Pty Ltd
OxiDx Operations Pty Ltd
Two-Tag Holdings Pty Ltd
17. REMUNERATION OF AUDITORS
(a) Audit services
- BDO Audit (WA) Pty Ltd
(b) Non-audit services
- BDO Corporate Tax (WA) Pty Ltd (i)
(i) Consulting services have been provided by BDO.
18. COMMITMENTS
Class of
share
Country of
Incorporation
2023
%
2022
%
Equity Holding
Ordinary
Australia
-
-
Australia
100
100
USA
Australia
Australia
Australia
Australia
100
100
66
66
66
-
-
66
66
66
Consolidated Consolidated
Entity
2023
$
Entity
2022
$
55,616
50,799
11,680
16,310
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 is yet to be agreed with the terms and fees to be determined.
19. 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 Financial Officer
(b) Transactions with Key Management Personnel
960,701
84,101
1,319,965
78,851
1,044,802
1,398,816
There were no consultancy services provided by key management personnel during the year ended 30 June 2023.
No loans were provided by Key Management Personnel during the year ended 30 June 2023.
The directors have not paid or declared a dividend during the financial years ended 30 June 2023 and 30 June 2022.
21. CONTINGENT LIABILITIES
The Company is not aware of any material contingent liabilities for the years ended 30 June 2023 and 30 June 2022.
22. SEGMENT REPORTING
The Board monitors the operations of the Company as one single segment. The actual to budget items and a detailed profit or
loss are reported to the board to assess the performance of the Company.
The Board has determined that strategic decision making is facilitated by evaluation of the operations of the legal parent and
subsidiary which represent the operational performance of the Company’s revenues and the research and development
activities as well as the finance, treasury, compliance and funding elements of the Company.
23. LOSS PER SHARE
(Loss) attributable to ordinary shareholders
Weighted average number of ordinary shares*
Loss per share
Consolidated
Entity
2023
$
Consolidated
Entity
2022
$
( 6,176,573)
( 4,972,960)
116,453,692
105,531,217
( $0.05)
( $0.05)
*Includes the effect of the transactions (under continuation accounting) for the purpose of the comparative earnings per share
calculation.
24. EVENTS OCCURRING AFTER THE REPORTING PERIOD
On 10 July 2023, 105,729 fully paid ordinary shares were issued upon the exercise of unquoted performance rights. The
performance rights were issued under the Performance Rights Plan as per of the incentive structures for employees and key
management personnel.
On 14 August 2023, 1,250,000 shares were issued upon the exercise of advisory options, raising $625,000 before costs.
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.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
Directors’ Declaration
25. PARENT ENTITY INFORMATION
The Directors of the Company declare that:
The following information relates to the legal parent entity, Proteomics International Laboratories Ltd, as at 30 June 2023. The
information presented here has been prepared using consistent accounting policies as presented in Note 1.
2023
$
5,895,164
5,895,164
99,684
-
99,684
14,197,741
1,828,310
( 10,230,571)
5,795,480
( 1,621,167)
-
( 1,621,167)
2022
$
1,170,154
1,170,154
148,095
-
148,095
7,948,465
1,682,998
( 8,609,404)
1,022,059
( 4,854,735)
-
( 4,854,735)
Current assets
Total Assets
Current liabilities
Non-current liabilities
Total Liabilities
Equity
Share Capital
Reserve
Accumulated Losses
Total Equity
(Loss) for the year
Other comprehensive income / (loss) for the year
Total comprehensive (loss) for the year
Contingent liabilities of the parent entity
The Company is not aware of any material contingent liabilities for the year ended 30 June 2023.
Commitments of the parent entity
Other than as described at note 18, the Company does not have any other on-going commitments.
26. INTERESTS IN OTHER ENTITIES
The Company does not currently have any interests in other entities.
27. DEED OF CROSS GUARANTEE
The Company has not currently entered into a deed of cross guarantee.
28. ASSETS PLEDGED AS SECURITY
The Company has no assets that have been pledged as security.
1.
The financial statements, comprising the consolidated statement of profit or loss and other comprehensive income, consolidated
statement of financial position, consolidated statement of cash flow, consolidated statements of changes in equity, accompanying
notes, are in accordance with the Corporations Act 2001 and:
(a)
(b)
comply with Accounting Standard, the Corporations Regulations 2001, other mandatory professional reporting requirements;
and
give a true and fair view of the financial position as at 30 June 2023 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
2023 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:
22 August 2023
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Independent Auditor’s Report
Independent Auditor’s Report
To the members of Proteomics International Laboratories Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Proteomics International Laboratories Limited (the Company)
and its subsidiaries (the Group), which comprises the consolidated statement of financial position as at
30 June 2023, the consolidated statement of profit or loss and other comprehensive income, the
consolidated statement of changes in equity and the consolidated statement of cash flows for the year
then ended, and notes to the financial report, including a summary of significant accounting policies and
the directors’ declaration.
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Act 2001, including:
(i)
Giving a true and fair view of the Group’s financial position as at 30 June 2023 and of its financial
performance for the year ended on that date; and
(ii)
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
Report section of our report. We are independent of the Group in accordance with the Corporations Act
2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110
Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are
relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical
responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters.
BDO Audit (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.
Recognition of Research and Development tax incentive (R&D Tax Rebate)
Key audit matter
How the matter was addressed in our audit
The Group receives a 43.5% refundable
Our audit procedures in respect of this area included but were not
tax offset of eligible expenditure under
limited to the following:
the Research and Development (R&D)
Tax Incentive scheme if its turnover is
less than $20 million per annum,
provided income tax-exempt entities do
not control it.
Note 14 of the financial report discloses
the
“Research
and
development
(“R&D”) tax incentive” and note 1(h)
discloses the accounting policy used by
the Group for its recognition of the R&D
tax refund.
We have considered this a key audit
matter due to the amounts involved
being material; and the
inherent
subjectivity
associated with
the
calculation of the R&D Tax Rebate.
• Verify that the cost of eligible R&D activities which were considered
as part of the claim calculations are adequately supported including
agreeing to trial balance.
• Review the accounting for receivable and income in accordance with
the requirements of Australian Accounting Standards.
• Comparing the estimates made in the prior year to the amount of
cash received after lodgement of the R&D tax claim.
• Obtaining FY23 R&D rebate calculations performed by management
and performing the following audit procedures:
-
-
-
Reviewing the expenditure methodology employed by
management and rebate calculations prepared by the Group’s
external expert;
Testing the mathematical accuracy of the accrual; and
Considering the nature of the expenses against the eligibility
criteria of the R&D tax incentive.
• Assessing the adequacy of disclosures in the notes to the financial
statements.
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Independent Auditor’s Report
Independent Auditor’s 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 2023 but does not include the financial report
and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any form
of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true
and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for
such internal control as the directors determine is necessary to enable the preparation of the financial
report that gives a true and fair view and is free from material misstatement, whether due to fraud or
error.
In preparing the financial report, the directors are responsible for assessing the ability of the group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing
and Assurance Standards Board website (http://www.auasb.gov.au/Home.aspx) at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 32-42 of the directors’ report for the year
ended 30 June 2023.
In our opinion, the Remuneration Report of Proteomics International Laboratories Limited, for the year
ended 30 June 2023, complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an
opinion on the Remuneration Report, based on our audit conducted in accordance with Australian
Auditing Standards.
BDO Audit (WA) Pty Ltd
Ashleigh Woodley
Director
Perth,
22 August 2023
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Shareholder Information
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Proteomics International Laboratories Ltd
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Glossary
Biologics Medicinal protein products manufactured in or extracted from
biological sources, e.g. immunotherapies for cancer.
Biomarker A measurable indicator of a state or condition, usually relating to early
phase of diseases; a biological signature.
Biosimilars Protein-based molecules that are biological medical products made to
mimic an original “Biologic“ drug.
Complementary diagnostic A complementary diagnostic is a test that aids in the benefit-risk
(CDx) 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 A progressive disease of the kidneys caused by diabetes and leading to
(nephropathy) the malfunction of the kidneys and ultimately renal failure.
eGFR The estimated Glomerular Filtration rate (eGFR) is a blood test used for
the diagnosis of chronic kidney disease.
End stage renal disease Kidney failure or ESRD is the final stage of kidney disease. Kidney failure
(ESRD) means the use of dialysis or transplantation is required for survival.
Diabetes is the most common cause of ESRD.
Immunoassay A procedure for detecting or measuring specific proteins or other
substances through the use of antibodies.
ISO 13485 certification A certification granted to organisations involved in the manufacturing
of medical devices that follow the internationally agreed standards of a
quality management system.
Key Opinion Leader Individuals or organisations with a respected social status, allowing
their opinions to have sway in making important decisions.
Mass Spectrometry The measurement of the mass to charge ratio of a molecule such as a
peptide in order to determine its chemical structure.
Odds Ratio (OR) A measure of association between two events. It can be used to determine
whether a particular exposure is a risk factor for a particular outcome.
In clinical research it gives direct information to doctors about which
treatment approach has the best odds of benefiting the patient.
Oesophageal cancer A cancer of the tube that runs from the throat to the stomach.
Oxidative Stress An imbalance between reactive oxygen species and your body’s ability
to eliminate them or repair the resulting damage.
Probability (P) The P value, or calculated probability, that an observation is true.
Most authors refer to statistically significant as P < 0.05 and statistically
highly significant as P < 0.001 (less than one in a thousand chance of
being wrong).
Prognostic A term for predicting the likely or expected development of a disease.
Proteomics The large-scale study of protein structure and function.
Recombinant antibodies Antibodies developed using synthetic genes.
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Why are proteins important?
Genomes are static - the
genes we are born with are
the genes we die with, but
the protein make up in our
bodies differs from cell to cell
and changes considerably
over time. Cells use the
instructions in our genes to
make proteins. Proteins are
the operational molecules of life and carry out the functions of
living organisms.
The caterpillar and the butterfly have exactly the same genome.
The proteins that their cells make are why they are different.
Looking at the differences in protein composition can tell us
about the state of life, and health, of any organism.
Proteomics is the study of proteins on an industrial scale.
Corporate Directory
Directors
Mr Neville Gardiner - Non-Executive Chairman
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
www.proteomicsinternational.com
Design: Castledine & Castledine
Auditors
BDO Audit (WA) Pty Ltd
38 Station Street
Subiaco, WA 6008
Accountants
S Pugliese
Suite 13, Level 1
123A Colin Street
West Perth, WA 6005
Share Registry
Automic Group
PO Box 5193
Sydney NSW 2001
T: 1300 288 664
E: hello@automic.com.au
W: automicgroup.com.au
Stock Exchange
ASX
Level 40, Central Park
152-158 St George’s Terrace
Perth WA 6000
ASX Code: PIQ
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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L A B O R AT O R I E S LT D