Kazia Therapeutics Limited
Directors' report
31 December 2023
|
Kazia Therapeutics Limited
Directors' report
31 December 2023
|
Kazia Therapeutics Limited
Directors' report
31 December 2023
|
Kazia Therapeutics Limited
Directors' report
31 December 2023
|
Bryce Carmine
|
Chairman
12 March 2024
|
Sydney
|
Tel: +61 2 9251 4100 | Level 11, 1 Margaret Street | |||
Fax: +61 2 9240 9821 | Sydney NSW 2000 | |||
www.bdo.com.au
| Australia |
1. |
No contraventions of the auditor independence requirements of the
Corporations Act 2001
in relation to the review; and
|
2. |
No contraventions of any applicable code of professional conduct in relation to the review.
|
Kazia Therapeutics Limited
Contents
31 December 2023
|
Statement of profit or loss and other comprehensive income
| 7 | |||
Statement of financial position
| 8 | |||
Statement of changes in equity
| 9 | |||
Statement of cash flows
| 11 | |||
Notes to the financial statements
| 12 | |||
Directors' declaration
| 23 | |||
Independent auditor's review report to the members of Kazia Therapeutics Limited
| 24 |
Kazia Therapeutics Limited
Statement of profit or loss and other comprehensive income
For the half-year ended 31 December 2023
|
Consolidated
| ||||||||||||
Note
|
December
2023
$
|
December 2022
$
| ||||||||||
Revenue and other income
| ||||||||||||
Other income
| 5 | - | ||||||||||
Finance Income
| 6,453 | 139 | ||||||||||
Expenses
| ||||||||||||
Research and development expense
| (4,327,717 | ) | (9,359,972 | ) | ||||||||
General and administrative expense
| (4,555,691 | ) | (4,276,514 | ) | ||||||||
Fair value gain on financial liabilities
| 84,587 | - | ||||||||||
Loss on revaluation of contingent consideration
| (166,696 | ) | (85,226 | ) | ||||||||
Loss before income tax benefit
| 4 | (8,959,059 | ) | (13,721,573 | ) | |||||||
Income tax benefit
| 135,546 | 135,546 | ||||||||||
Loss after income tax benefit for the half-year attributable to the owners of Kazia Therapeutics Limited
| (8,823,513 | ) | (13,586,027 | ) | ||||||||
Other comprehensive income
| ||||||||||||
Items that may be reclassified subsequently to profit or loss
| ||||||||||||
Net exchange difference on translation of financial statements of foreign controlled entities, net of tax
| (103,687 | ) | 86,494 | |||||||||
Other comprehensive income for the half-year, net of tax
| (103,687 | ) | 86,494 | |||||||||
Total comprehensive income for the half-year attributable to the owners of Kazia Therapeutics Limited
| (8,927,200 | ) | (13,499,533 | ) | ||||||||
Cents
|
Cents
| |||||||||||
Basic earnings per share
| 20 | (3.680 | ) | (9.327 | ) | |||||||
Diluted earnings per share
| 20 | (3.680 | ) | (9.327 | ) |
Kazia Therapeutics Limited
Statement of financial position
As at 31 December 2023
|
Consolidated
| ||||||||||
Note
|
December
2023
$
|
June 2023
$
| ||||||||
Assets
| ||||||||||
Current assets
| ||||||||||
Cash and cash equivalents
| 5 | 3,562,602 | 5,241,197 | |||||||
Trade and other receivables
| 6 | 3,742,671 | 3,899,154 | |||||||
Other assets
| 7 | 703,347 | 1,632,472 | |||||||
Total current assets
| 8,008,620 | 10,772,823 | ||||||||
Non-current
assets
| ||||||||||
Intangibles
| 8 | 16,334,727 | 17,269,432 | |||||||
Other receivables
| 9 | 40,000 | 42,922 | |||||||
Total
non-current
assets
| 16,374,727 | 17,312,354 | ||||||||
Total assets
| 24,383,347 | 28,085,177 | ||||||||
Liabilities
| ||||||||||
Current liabilities
| ||||||||||
Trade and other payables
| 10 | 5,986,677 | 4,328,949 | |||||||
Other financial liabilities
| 14 | 3,093,665 | - | |||||||
Borrowings
| 11 | 359,300 | 1,796,500 | |||||||
Employee benefits
| 337,415 | 689,802 | ||||||||
Contingent consideration
| 12 | 1,558,931 | 750,000 | |||||||
Total current liabilities
| 11,335,988 | 7,565,251 | ||||||||
Non-current
liabilities
| ||||||||||
Deferred tax
| 13 | 2,153,723 | 2,289,269 | |||||||
Employee benefits
| 66,139 | 59,323 | ||||||||
Contingent consideration
| 15 | 5,559,989 | 6,120,783 | |||||||
Total
non-current
liabilities
| 7,779,851 | 8,469,375 | ||||||||
Total liabilities
| 19,115,839 | 16,034,626 | ||||||||
Net assets
| 5,267,508 | 12,050,551 | ||||||||
Equity
| ||||||||||
Contributed equity
| 16 | 98,779,714 | 97,452,246 | |||||||
Unissued equity
| 17 | 380,224 | - | |||||||
Reserves
| 18 | 4,013,654 | 3,680,876 | |||||||
Accumulated losses
| (97,906,084 | ) | (89,082,571 | ) | ||||||
Total equity
| 5,267,508 | 12,050,551 | ||||||||
Kazia Therapeutics Limited
Statement of changes in equity
For the half-year ended 31 December 2023
|
Issued capital |
Share based payment reserve |
Foreign currency
translation reserve |
Accumulated losses |
Total equity
| ||||||||||||||||
Consolidated
|
$
|
$
|
$
|
$
|
$
| |||||||||||||||
Balance at 1 July 2022
| 84,480,249 | 3,263,703 | (852,038 | ) | (68,617,391 | ) | 18,274,523 | |||||||||||||
Loss after income tax benefit for the half-year
| - | - | - | (13,586,027 | ) | (13,586,027 | ) | |||||||||||||
Other comprehensive income for the half-year, net of tax
| - | - | 86,494 | - | 86,494 | |||||||||||||||
Total comprehensive income for the half-year
| - | - | 86,494 | (13,586,027 | ) | (13,499,533 | ) | |||||||||||||
Issue of shares
| 6,263,986 | - | - | - | 6,263,986 | |||||||||||||||
Share issue costs
| (400,517 | ) | - | - | - | (400,517 | ) | |||||||||||||
Transactions with owners in their capacity as owners:
| ||||||||||||||||||||
Employee share-based payment options expired
| - | (3,486 | ) | - | 3,486 | - | ||||||||||||||
Employee share-based payment options
| - | 944,726 | - | - | 944,726 | |||||||||||||||
Balance at 31 December 2022
| 90,343,718 | 4,204,943 | (765,544 | ) | (82,199,932 | ) | 11,583,185 | |||||||||||||
Kazia Therapeutics Limited
Statement of changes in equity
For the half-year ended 31 December 2023
|
Issued capital
|
Unissued equity |
Share based
payment reserve |
Foreign currency
translation reserve |
Accumulated losses |
Total equity
| |||||||||||||||||||
Consolidated
|
$
|
$
|
$
|
$
|
$
|
$
| ||||||||||||||||||
Balance at 1 July 2023
| 97,452,246 | - | 4,422,666 | (741,790 | ) | (89,082,571 | ) | 12,050,551 | ||||||||||||||||
Loss after income tax benefit for the half- year
| - | - | - | - | (8,823,513 | ) | (8,823,513 | ) | ||||||||||||||||
Other comprehensive income for the half- year, net of tax
| - | - | - | (103,687 | ) | (103,687 | ) | |||||||||||||||||
Total comprehensive income for the half- year
| - | - | - | (103,687 | ) | (8,823,513 | ) | (8,927,200 | ) | |||||||||||||||
Transactions with owners in their capacity as owners:
| ||||||||||||||||||||||||
Issue of shares
| 1,648,187 | - | - | - | - | 1,648,187 | ||||||||||||||||||
Share issue costs
| (320,719 | ) | - | - | - | - | (320,719 | ) | ||||||||||||||||
Conversion of convertible promissory note
| - | 380,224 | - | - | - | 380,224 | ||||||||||||||||||
Employee share- based payment options
| - | - | 436,465 | - | - | 436,465 | ||||||||||||||||||
Balance at 31 December 2023
| 98,779,714 | 380,224 | 4,859,131 | (845,477 | ) | (97,906,084 | ) | 5,267,508 | ||||||||||||||||
Kazia Therapeutics Limited
Statement of cash flows
For the half-year ended 31 December 2023
|
Consolidated
| ||||||||||||
Note
|
December 2023 |
December 2022 | ||||||||||
$
|
$
| |||||||||||
Cash flows from operating activities
| ||||||||||||
Receipts from customers (inclusive of GST)
| - | - | ||||||||||
Payments to suppliers and employees (inclusive of GST)
| (6,295,615 | ) | (8,806,148 | ) | ||||||||
Interest paid
| (39,257 | ) | - | |||||||||
Net cash used in operating activities
| 21 | (6,334,872 | ) | (8,806,148 | ) | |||||||
Cash flows from financing activities
| ||||||||||||
Proceeds from issue of shares (net of costs)
| 16 | 1,327,468 | 5,850,869 | |||||||||
Proceeds from borrowings
| 17 | 776,670 | - | |||||||||
Repayment of borrowings
| 17 | (371,802 | ) | - | ||||||||
Proceeds from issue of equity and
pre-funded
warrants
| 14 | 3,020,315 | - | |||||||||
Net cash from financing activities
| 4,752,651 | 5,850,869 | ||||||||||
Net decrease in cash and cash equivalents
| (1,582,221 | ) | (2,955,279 | ) | ||||||||
Cash and cash equivalents at the beginning of the financial half-year
| 5,241,197 | 7,361,112 | ||||||||||
Effects of exchange rate changes on cash and cash equivalents
| (96,374 | ) | (15,310 | ) | ||||||||
Cash and cash equivalents at the end of the financial half-year
| 5 | 3,562,602 | 4,390,523 | |||||||||
Kazia Therapeutics Limited
Notes to the financial statements
31 December 2023
|
Kazia Therapeutics Limited
Notes to the financial statements
31 December 2023
|
Kazia Therapeutics Limited
Notes to the financial statements
31 December 2023
|
Consolidated
| ||||||||||||
December 2023 |
December 2022 | |||||||||||
$
|
$
| |||||||||||
Loss before income tax includes the following specific expenses:
| ||||||||||||
Amortisation
| ||||||||||||
Amortisation
| 934,705 | 934,711 | ||||||||||
Interest expense
| ||||||||||||
Borrowings
| 39,257 | - | ||||||||||
Contingent consideration - Effective Interest
| 15 | 220,484 | 221,637 | |||||||||
259,741 | 221,637 | |||||||||||
Superannuation expense
| ||||||||||||
Defined contribution superannuation expense
| 48,730 | 63,734 | ||||||||||
Employee benefits expense excluding superannuation
| ||||||||||||
Employee benefits expense excluding superannuation
| 1,793,896 | 1,778,503 | ||||||||||
Consolidated
| ||||||||
December 2023 |
June 2023
| |||||||
$
|
$
| |||||||
Cash at bank and on hand
| 3,562,602 | 5,241,197 | ||||||
Kazia Therapeutics Limited
Notes to the financial statements
31 December 2023
|
Consolidated
| ||||||||
December 2023 |
June
2023
| |||||||
$
|
$
| |||||||
Trade receivables
| - | 610 | ||||||
GBM Agile deposit
| 3,637,427 | 3,752,640 | ||||||
Deposit paid
| 39,851 | 40,870 | ||||||
GST refundable
| 65,393 | 105,034 | ||||||
3,742,671 | 3,899,154 | |||||||
Consolidated
| ||||||||
December
2023
|
June
2023
| |||||||
$
|
$
| |||||||
Prepayments
| 703,347 | 1,632,472 | ||||||
Consolidated
| ||||||||
December 2023 |
June 2023
| |||||||
$
|
$
| |||||||
Paxalisib Licensing agreement - at acquired fair value
| 16,407,788 | 16,407,788 | ||||||
Less: Accumulated amortisation
| (7,792,901 | ) | (7,250,728 | ) | ||||
8,614,887 | 9,157,060 | |||||||
EVT-801
Licensing agreement - at cost
| 9,813,362 | 9,813,362 | ||||||
Less: Accumulated amortisation
| (2,093,522 | ) | (1,700,990 | ) | ||||
7,719,840 | 8,112,372 | |||||||
16,334,727 | 17,269,432 | |||||||
EVT801
licensing agreement |
Paxalisib licensing agreement | Total | ||||||||||
Consolidated | $ | $ | $ | |||||||||
Balance at 1 July 2023
| 8,112,372 | 9,157,060 | 17,269,432 | |||||||||
Amortisation expense
| (392,532 | ) | (542,173 | ) | (934,705 | ) | ||||||
Balance at 31 December 2023
| 7,719,840 | 8,614,887 | 16,334,727 | |||||||||
Kazia Therapeutics Limited
Notes to the financial statements
31 December 2023
|
Consolidated
| ||||||||
December 2023 |
June 2023 | |||||||
$
|
$
| |||||||
Corporate credit card deposit
| 40,000 | 42,922 | ||||||
Consolidated
| ||||||||
December 2023 |
June 2023
| |||||||
$
|
$
| |||||||
Trade payables
| 1,038,128 | 857,312 | ||||||
Accrued and other payables
| 4,948,549 | 3,471,637 | ||||||
5,986,677 | 4,328,949 | |||||||
Consolidated
| ||||||||
December 2023 |
June 2023
| |||||||
$
|
$
| |||||||
Insurance premium funding
| 359,300 | 1,796,500 | ||||||
Consolidated
| ||||||||
December 2023 |
June 2023 | |||||||
$
|
$
| |||||||
Contingent consideration - Paxalisib
| 750,000 | 750,000 | ||||||
Contingent consideration - EVT801
| 808,931 | - | ||||||
1,558,931 | 750,000 | |||||||
Kazia Therapeutics Limited
Notes to the financial statements
31 December 2023
|
Consolidated
| ||||||||
December 2023 |
June 2023
| |||||||
$
|
$
| |||||||
Deferred tax liability
| 2,153,723 | 2,289,269 | ||||||
Amount expected to be settled after more than 12 months
| 2,153,723 | 2,289,269 | ||||||
Movements:
| ||||||||
Opening balance
| 2,289,269 | 2,560,361 | ||||||
Credited to profit or loss
| (135,546 | ) | (271,092 | ) | ||||
Closing balance
| 2,153,723 | 2,289,269 | ||||||
Consolidated
| ||||||||
December 2023 |
June 2023
| |||||||
$
|
$
| |||||||
Prefunded and ordinary warrants at initial recognition
| 3,020,315 | - | ||||||
Change in fair value
| 73,350 | - | ||||||
Prefunded and ordinary warrants at end period end
| 3,093,665 | - | ||||||
Kazia Therapeutics Limited
Notes to the financial statements
31 December 2023
|
Consolidated
| ||||||||
December 2023 |
June 2023
| |||||||
$
|
$
| |||||||
Contingent consideration - Paxalisib
| 750,499 | 653,692 | ||||||
Contingent consideration - EVT801
| 4,809,490 | 5,467,091 | ||||||
5,559,989 | 6,120,783 | |||||||
Consolidated
| ||||||||
December 2023 |
June 2023
| |||||||
$
|
$
| |||||||
Reconciliation of the balance at the beginning and end of the reporting period is set out below:
| ||||||||
Contingent consideration at start of period (current and non-current)
| 6,870,783 | 8,967,785 | ||||||
Interest
| 220,484 | 593,462 | ||||||
Foreign currency (gain)/loss
| (139,043 | ) | 697,233 | |||||
Loss/(Gain) on revaluation of contingent consideration
| 166,696 | (3,387,697 | ) | |||||
7,118,920 | 6,870,783 | |||||||
Kazia Therapeutics Limited
Notes to the financial statements
31 December 2023
|
Consolidated
| ||||||||||||||||
December 2023 |
June 2023
|
December 2023 |
June 2023
| |||||||||||||
Shares
|
Shares
|
$
|
$
| |||||||||||||
Ordinary shares - fully paid
| 263,615,444 | 228,029,114 | 98,779,714 | 97,452,246 | ||||||||||||
Details
|
Date
|
Shares
|
Issue price
|
$
| ||||||||||||
Balance
| 1 July 2023 | 228,029,114 | 97,452,246 | |||||||||||||
ATM issue of shares No. 19
| 7 July 2023 | 8,148,140 | $ | 0.1856 | 1,512,523 | |||||||||||
ATM issue of shares No. 20
| 11 July 2023 | 157,120 | $ | 0.1647 | 25,877 | |||||||||||
ATM issue of shares No. 21
| 4 August 2023 | 15,000 | $ | 0.1679 | 2,519 | |||||||||||
ATM issue of shares No. 22
| 30 November 2023 | 1,066,070 | $ | 0.1006 | 107,268 | |||||||||||
Registered Direct Offering
| 5 December 2023 | 26,200,000 | $ | 0.0000 | - | |||||||||||
Less: share issue transaction costs
| - | $ | 0.0000 | (320,719 | ) | |||||||||||
Balance
| 31 December 2023 | 263,615,444 | 98,779,714 | |||||||||||||
Kazia Therapeutics Limited
Notes to the financial statements
31 December 2023
|
Consolidated
| ||||||||
December 2023 |
June 2023
| |||||||
$
|
$
| |||||||
Unissued equity
| 380,224 | - | ||||||
Consolidated
| ||||||||
December 2023 |
June 2023
| |||||||
$
|
$
| |||||||
Foreign currency reserve
| (845,477 | ) | (741,790 | ) | ||||
Share-based payments reserve
| 4,859,131 | 4,422,666 | ||||||
4,013,654 | 3,680,876 | |||||||
Kazia Therapeutics Limited
Notes to the financial statements
31 December 2023
|
Consolidated December 2023
$
|
Consolidated December 2022
$
| |||||||
Loss after income tax attributable to the owners of Kazia Therapeutics Limited
| (8,823,513 | ) | (13,586,027 | ) | ||||
Number
|
Number
| |||||||
Weighted average number of ordinary shares used in calculating basic earnings per share
| 239,779,384 | 145,661,097 | ||||||
Weighted average number of ordinary shares used in calculating diluted earnings per share
| 239,779,384 | 145,661,097 | ||||||
Cents
|
Cents
| |||||||
Basic earnings per share
| (3.680 | ) | (9.327 | ) | ||||
Diluted earnings per share
| (3.680 | ) | (9.327 | ) |
Consolidated
| ||||||||
December 2023 |
December 2022 | |||||||
$
|
$
| |||||||
Loss after income tax benefit for the half-year
| (8,823,513 | ) | (13,586,027 | ) | ||||
Adjustments for:
| ||||||||
Amortisation
| 934,705 | 934,741 | ||||||
Share-based payments
| 436,465 | 944,726 | ||||||
Foreign exchange differences
| (13,063 | ) | 145,529 | |||||
Fair value losses on financial liabilities at fair value through profit or loss
| (84,587 | ) | - | |||||
Loss on contingent consideration
| 166,696 | 85,227 | ||||||
Contingent consideration interest
| 220,484 | 221,637 | ||||||
Change in operating assets and liabilities:
| ||||||||
Decrease/(increase) in trade and other receivables
| 274,618 | (650,153 | ) | |||||
Increase/(decrease) in GBM Agile deposit
| (115,213 | ) | 3,836,630 | |||||
(Decrease)/increase in prepayments
| 929,125 | (628,404 | ) | |||||
(Decrease)/increase in insurance premium funding
| (1,437,200 | ) | 552,315 | |||||
Increase/(decrease) in trade and other payables
| 1,657,728 | (611,352 | ) | |||||
Decrease in deferred tax liabilities
| (135,546 | ) | (135,546 | ) | ||||
(Decrease)/increase in employee benefits
| (345,571 | ) | 84,529 | |||||
Net cash used in operating activities
| (6,334,872 | ) | (8,806,148 | ) | ||||
Kazia Therapeutics Limited
Notes to the financial statements
31 December 2023
|
Kazia Therapeutics Limited
Directors' declaration
31 December 2023
|
• |
the attached financial statements and notes comply with the Corporations Act 2001, Australian Accounting Standard AASB 134 'Interim Financial Reporting', the Corporations Regulations 2001 and other mandatory professional reporting requirements;
|
• |
the attached financial statements and notes give a true and fair view of the Consolidated entity's financial position as at 31 December 2023 and of its performance for the financial half-year ended on that date; and
|
• |
there are reasonable grounds to believe that the Consolidated entity will be able to pay its debts as and when they become due and payable.
|
On behalf of the directors |
Bryce Carmine
|
Chairman
12 March 2024
|
Sydney
|
Tel: +61 2 9251 4100 | Level 11, 1 Margaret Street | |||
Fax: +61 2 9240 9821 | Sydney NSW 2000 | |||
www.bdo.com.au | Australia |
i. |
Giving a true and fair view of the Group's financial position as at 31 December 2023 and of its financial performance for the half-year ended on that date; and
|
ii. |
Complying with Accounting Standard AASB
134 Interim Financial Reporting and the Corporations Regulations 2001
.
|
BDO Audit Pty Ltd
|
Gareth Few
Director
|
Sydney, 12 March 2024
|
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Disclaimer
Kazia Therapeutics Limited published this content on 27 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 March 2024 12:29:02 UTC.