IDT Australia : Half Year Report 31 December 2021

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IDT AUSTRALIA LIMITED

ACN 006 522 970

HALF YEAR REPORT

FOR THE HALF YEAR ENDED

31 DECEMBER 2021

For personal use only

CONTENTS

	Page Number
Directors' Report	2	- 3
Auditor's Independence Declaration		4
Independent Review Report to the Members	5	- 6
Directors' Declaration		7
Condensed Statement of Profit or Loss and Other Comprehensive Income		8
Condensed Statement of Financial Position		9
Condensed Statement of Changes in Equity	10
Condensed Statement of Cash Flows	11
Notes to and Forming Part of the Condensed Financial Statements	12	- 14

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DIRECTORS' REPORT

The Directors of IDT Australia Limited ("IDT") submit herewith the financial report of the Company for the half year ended 31 December 2021. In order to comply with the provisions of the Corporations Act 2001, the Directors report as follows:

Directors

The Directors of the Company during or since the end of the half year are:

Alan Fisher, Non-Executive Chair	Hugh Burrill, Non-Executive Director
Michael Kotsanis, Non-Executive Director	Mary Sontrop, Non-Executive Director (retired 16
Jane Ryan. Non-Executive Director	November 2021)
(appointed 28 January 2022)

Principal Activities

The principal activities of the Company are the manufacture and supply of products and provision of research and development and other technical services for the pharmaceutical industry.

Review of Operations

Cash at 31 December 2021 was $13.31 million (30 June 2021 $6.93 million) and net cash inflow for the half year ended 31 December 2021 was $6.39 million, compared to net cash inflow of $0.46 million for the half year ended 31 December 2020. Cash inflows for the current period mainly consisted of receipts of $13.64 million compared to $6.83 million for the half year ended 31 December 2020.

Revenue for the half year ended 31 December 2021 was up 74% to $8.56 million, compared to $4.91 million for the half year ended 31 December 2020. The Company's profit after tax for the half year ended 31 December 2021 was $1.21 million, compared to $1.12 million for the same half in 2020.

Major highlights during the half year include:

• Sterile Manufacturing Licence Secured From The Therapeutic Goods Administration

During the half year in review IDT successfully executed on a Letter Agreement with the Australian Government, Department of Health; to bring the Company's cGMP sterile manufacturing facility into a state of readiness. IDT engaged with the Therapeutic Goods Administration (TGA) to recommission and re-activate the Company's flagship sterile manufacturing facility. The culmination of these activities, and the key deliverable under the Australian Government Letter Agreement, was the issue of a Sterile Manufacturing Licence (the Company's first ever sterile licence) by the TGA. IDT's sterile manufacturing facility is now being maintained in a state of sterile readiness.

• IDT Manufactures Australia's First cGMP mRNA Drug Product

IDT utilised its newly licenced sterile manufacturing facilities and capabilities to successfully manufacture Australia's first cGMP mRNA COVID-19 vaccine candidate, destined for clinical trials in 2022.

The Monash University / Doherty Institute developed mRNA COVID-19 receptor binding domain vaccine is Australia's first locally developed mRNA COVID-19 vaccine candidate. Thanks to experience gained from this project, IDT is currently the only manufacturing company in Australia with direct experience in developing downstream cGMP manufacturing processes to produce mRNA products.

• IDT's Sovereign Manufacturing Initiatives

Towards the end of the reporting period, IDT was disappointed to receive the news that its submission to the Australian Government's Approach-To-Market: Onshore mRNA Manufacturing Capability (ATM) had been unsuccessful. All applications to the Government's ATM were unsuccessful, with the Government electing to progress a deal with Moderna Inc. separate to the ATM process.

Despite the outcome of the ATM, IDT has ongoing support from industry and academia, including The Peter Doherty Institute for Infection and Immunity, Monash University, University of Melbourne and the Australian National University to build an mRNA manufacturing ecosystem in Australia. This support underpins IDT's submissions to the Australian Government's Modern Manufacturing Initiative Collaboration and Translation Stream grants (MMI). IDT's MMI (Collaboration and Translation Stream) funding opportunities remain live.

• Medicinal Cannabis

During the half year ended 31 December 2021, IDT continued to make good progress in advancing its Medicinal Cannabis Manufacturing Plan. Stability programs are ongoing for the Company's cGMP medicinal cannabis flower-in-bottle and oil-in-bottle products. Several of these products are now on market with more to follow. The Company's extraction and purification activities currently produce a range of cGMP medicinal cannabis resins and further refined APIs. IDT is also producing a range of cGMP finished dose form medicinal cannabis products which are suitable for both domestic and export markets.

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IDT is advancing a pipeline of proprietary medicinal cannabis APIs and additional finished dosage form development opportunities. In addition, IDT continues to provide contract development and manufacturing services to our current and future medicinal cannabis customers.

Matters Subsequent to the End of the Financial Half Year

Dr Jane Ryan was appointed to the Board on 28 January 2022 as a Non-Executive Director.

Throughout the course of the reporting period the COVID-19 pandemic has continued to present challenges to day-to-day life as well as business and economic activity. The financial statements have been prepared based upon conditions existing at 31 December 2021, which included the impact of COVID on the business at that time. The Company considers the ongoing Government restrictions such as the restrictions on domestic and international travel and other State Government's border control and rolling lockdowns, as well as the present wave of COVID-19 Omicron variant cases Australia wide to be non-adjusting post balance sheet events. The scale and duration of the COVID-19 pandemic and its associated business and economic disruptions remain uncertain as at the date of this report. However they may have an impact on the Company's 2022 financial year earnings, cash flow and financial position.

Opportunities for IDT to provide further COVID-19 manufacturing services and mRNA product manufacturing services are being pursued. Further information has been provided in Future Developments below.

There are no other matters or circumstances occurring subsequent to the end of the half year that have significantly affected, or may significantly affect, the operations of the Company, the results of those operations or the state of affairs in future financial periods.

Future Developments

Future developments include the commencement of clinical trials associated with the Monash Institute of Pharmaceutical Sciences' (MIPS') / Doherty Institute developed Receptor Binding Domain mRNA COVID-19 vaccine, which was manufactured by IDT. IDT is also standing-by for any developments from the Australian Government in regards to the Company's submissions to the Modern Manufacturing Initiative Collaboration and Translation Stream grant funding rounds.

IDT continues to engage with the Government and industry to build awareness of Australia's lack of resilience in its pharmaceutical supply chain and to promote increased levels of sovereign vaccine and pharmaceutical manufacturing in Australia.

Subject to the foregoing, at the date of this report, there are no likely developments in the operations of this Company required to be reported in accordance with sub-section 299(1)(e) 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 set out on page 4.

Rounding of Amounts

The Company is a company of the kind referred to in ASIC Corporations (Rounding in Financials / Directors' Reports) Instrument 2016/191, dated 24 March 2016, and accordingly the amounts in the Directors' Report and the Half Year Financial Report are rounded off to the nearest thousand dollars, unless otherwise indicated.

Signed in accordance with a resolution of the Directors made pursuant to s306(3) of the Corporations Act 2001.

On behalf of the Directors

Alan Fisher

Chair

23 February 2022

3

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	Auditor's Independence Declaration
	To the Directors of IDT Australia Limited
use
	In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the review of
	IDT Australia Limited for the half-year ended 31 December 2021, I declare that, to the best of my knowledge and belief, there
	have been:
	a	no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and
	b	no contraventions of any applicable code of professional conduct in relation to the review.
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Grant Thornton Audit Pty Ltd
Chartered Accountants
M A Cunningham
Partner - Audit & Assurance
Melbourne, 23 February 2022
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