Next Science : Appendix 4E / FY21 Financial Statements

For personal use only

Next Science Limited

ACN: 622 382 549

Appendix 4E

31 December 2021

Company details

Name of entity:	Next Science Limited
ABN:	47 622 382 549
Reporting period:	For the year ended 31 December 2021
Previous period:	For the year ended 31 December 2020

_________________________________________________________________________________

Results for announcement to the market
				USD $
Revenues from ordinary activities	up	160%	to	8,947,591
Loss from ordinary activities after tax
attributable to the owners of Next Science	up	22%	to	(9,349,639)
Limited
Loss for the year attributable to the owners of
Next Science Limited	up	22%	to	(9,349,639)

Dividends

No dividend was paid or proposed during the year ended 31 December 2021 (2020: USD $nil).

Refer to the Operating and Financial Review within the Directors' Report for further commentary on the year's results, financial position and likely developments in future years.

Net tangible assets
	Reporting		Previous
	period		period
	USD Cents		USD Cents
Net tangible assets/(liabilities) per ordinary security	4.16		8.54

The net tangible asset/(liability) per ordinary security is calculated based on 197,973,909 ordinary shares on issue at 31 December 2021 and 194,201,409 shares that were in existence at 31 December 2020.

Control gained over entities

Not applicable.

Loss of control over entities

Not applicable.

For personal use only

Next Science Limited

ACN: 622 382 549

Appendix 4E

31 December 2021

Other information requiring disclosure to comply with ASX Listing rule 4.3A is contained in, and should be read in conjunction with the Financial Statements, the notes to the Financial Statements and the Directors' Report for the year ended 31 December 2021 attached to this report.

This report is based on the Consolidated Financial Statements and Notes of Next Science Limited which have been audited by KPMG.

Signed

Mark Compton AM

Chair

23 February 2022

Sydney

For personal use only

Next Science Limited

ACN: 622 382 549

Financial Statements

For the Year Ended 31 December 2021

Next Science Limited

ACN: 622 382 549

Contents

For the Year Ended 31 December 2021

Financial Statements

Directors' Report

	Auditor's Independence Declaration under Section 307C of the Corporations Act 2001
	Consolidated Statement of Profit or Loss and Other Comprehensive Income
onlyConsolidated Statement of Financial Position
For personal use	Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Directors' Declaration
Independent Auditor's Report
Corporate Directory

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Next Science Limited

ACN: 622 382 549

Directors' Report

For personal use only

31 December 2021

The Directors present their report together with the consolidated financial statements of the Group comprising of Next Science Limited (Next Science/Company), and the entities it controlled at the end of, or during, the year ended 31 December 2021 (Group). All amounts are presented in US dollars (USD) unless otherwise stated.

Directors

The Directors of the Company at any time during or since the end of the financial year are:

Mark Compton (Chair)
Judith Mitchell
Bruce Hancox
Daniel Spira
Aileen Stockburger
George Savvides (Chair)	Retired 5 May 2021

Dividends

No dividends were paid or declared since the commencement of the year and the Directors do not recommend the declaration of a dividend.

Operating and financial review

Principal activities

The principal activities of the Group during the course of the year were the research, development and commercialisation of technologies which solve issues in human health caused by biofilms. The Company is headquartered in Sydney, Australia and has a research and development centre and sales and marketing functions located in Florida, USA.

Significant changes in the state of affairs and COVID-19 impact

Revenues grew by 160% in 2021 with sales contributions across all of Next Science's products in market and good progress was made in building market awareness for our XBIOTM brand as an answer to the biofilms and bacteria that directly lead to the need for revision (repeat) joint replacement surgeries and for our newly launched product, XPERIENCETM. Revenues showed some early signs of recovery from the negative impacts during 2020 brought about by the COVID-19 shutdown in the USA of elective medical procedures and closure of outpatient wound care clinics. COVID-19 continued to have impact on revenues and establishing relationships with clients, distributors and others in 2021. Whilst COVID-19 is likely to continue to provide a level of disruption during 2022, we expect our customer following to continue to grow across all of our direct product lines as we continue to partner with our customers to provide them with the best tools to serve their patients.

The Group made progress in expanding our addressable market opportunities and taking more direct control of distribution. During March/April 2021, the global distribution rights to Blast-X transitioned back to Next Science from 3M and Next Science resumed a direct distribution model, selling Blast-X directly to US hospitals and wound care clinics.

On 23 April 2021, Next Science received 510(k) clearance from the U.S. Food and Drug Administration (FDA) for the sale of XPERIENCETM in the USA and soon thereafter, Next Science began selling XPERIENCETM directly to US hospitals and Ambulatory Service Centres.

The former Chair of Next Science, George Savvides AM, did not seek re-election at the Company's 2021 Annual General Meeting on 5 May 2021 and retired at the conclusion of the meeting. Mark Compton AM was elected by the Board to the role of Chair thereafter.

On 26 May 2021, Next Science received Therapeutic Goods Administration (TGA) clearance for Blast-X permitting sales in Australia.

In June 2021, Next Science agreed to open negotiations with Zimmer, Inc (Zimmer), Next Science's distribution partner for the Bactisure product, in relation to the commercialisation and distribution rights to XPERIENCETM. The negotiations followed the filing of a complaint by Zimmer in the United States District Court, Northern District of Indiana, alleging that they had global commercial exclusivity rights over XPERIENCETM. Next Science denied the allegations and advised that it would defend the complaint if and when it was served on Next Science by Zimmer.

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