Kazia Therapeutics Limited Appendix 4D Half-year report |
Name of entity: | Kazia Therapeutics Limited | |
ABN: | 37 063 259 754 | |
Reporting period: | For the half-year ended 31 December 2022 | |
Previous period: | For the half-year ended 31 December 2021 |
$ |
||||||||||||||
Loss from ordinary activities after tax attributable to the owners of Kazia Therapeutics Limited |
up | 2.9 | % | to | (13,586,027 | ) | ||||||||
Loss for the half-year attributable to the owners of Kazia Therapeutics Limited |
up | 2.9 | % | to | (13,586,027 | ) |
Reporting period Cents |
Previous period Cents Restated* |
|||||||
Net tangible assets per ordinary security |
(4.05 | ) | (0.62 | ) | ||||
Kazia Therapeutics Limited Appendix 4D Half-year report |
Signed | /s/ Iain Ross |
Date: 28 February 2023 |
Kazia Therapeutics Limited Directors’ report 31 December 2022 |
Kazia Therapeutics Limited Directors’ report 31 December 2022 |
Kazia Therapeutics Limited Directors’ report 31 December 2022 |
Kazia Therapeutics Limited Directors’ report 31 December 2022 |
/s/ Iain Ross |
||||
Iain Ross |
||||
Chairman |
||||
28 February 2023 |
||||
Sydney |
|
Tel: +61 2 9251 4100 Fax: +61 2 9240 9821 www.bdo.com.au |
Level 11, 1 Margaret Street Sydney NSW 2000 Australia |
1. | No contraventions of the auditor independence requirements of the Corporations Act 2001 |
2. | No contraventions of any applicable code of professional conduct in relation to the review. |
Kazia Therapeutics Limited Contents 31 December 2022 |
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 |
22 | |||
Independent auditor’s review report to the members of Kazia Therapeutics Limited |
23 |
Kazia Therapeutics Limited Statement of profit or loss and other comprehensive income For the half-year ended 31 December 2022 |
Consolidated |
||||||||||||
Note |
December 2022 |
December 2021 Restated * |
||||||||||
$ |
$ |
|||||||||||
Revenue and other income |
||||||||||||
Other income |
5 | |||||||||||
Finance Income |
||||||||||||
Expenses |
||||||||||||
Research and development expense |
( |
) | ( |
) | ||||||||
General and administrative expense |
( |
) | ( |
) | ||||||||
Loss on revaluation of contingent consideration |
( |
) | ( |
) | ||||||||
|
|
|
|
|||||||||
Loss before income tax benefit |
( |
) | ( |
) | ||||||||
Income tax benefit |
||||||||||||
|
|
|
|
|||||||||
Loss after income tax benefit for the half-year attributable to the owners of Kazia Therapeutics Limited |
( |
) | ( |
) | ||||||||
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 |
||||||||||||
|
|
|
|
|||||||||
Other comprehensive income for the half-year, net of tax |
||||||||||||
|
|
|
|
|||||||||
Total comprehensive income for the half-year attributable to the owners of Kazia Therapeutics Limited |
( |
) | ( |
) | ||||||||
|
|
|
|
|||||||||
* The comparative information has been restated as a result of the prior period error discussed in note 3. |
| |||||||||||
Cents |
Cents |
|||||||||||
Basic earnings per share |
20 | ( |
) | ( |
) | |||||||
Diluted earnings per share |
20 | ( |
) | ( |
) |
Kazia Therapeutics Limited Statement of financial position As at 31 December 2022 |
Consolidated |
||||||||||||
Note |
December 2022 |
June 2022 Restated * |
||||||||||
$ |
$ |
|||||||||||
Assets |
||||||||||||
Current assets |
||||||||||||
Cash and cash equivalents |
7 | |||||||||||
Trade and other receivables |
8 | |||||||||||
Other assets |
9 | |||||||||||
|
|
|
|
|||||||||
Total current assets |
||||||||||||
|
|
|
|
|||||||||
Non-current assets |
||||||||||||
Intangibles |
10 | |||||||||||
Trade and other receivables |
11 | |||||||||||
|
|
|
|
|||||||||
Total non-current assets |
||||||||||||
|
|
|
|
|||||||||
Total assets |
||||||||||||
|
|
|
|
|||||||||
Liabilities |
||||||||||||
Current liabilities |
||||||||||||
Trade and other payables |
12 | |||||||||||
Borrowings |
13 | |||||||||||
Employee benefits |
||||||||||||
Contingent consideration |
14 | |||||||||||
|
|
|
|
|||||||||
Total current liabilities |
||||||||||||
|
|
|
|
|||||||||
Non-current liabilities |
||||||||||||
Deferred tax |
15 | |||||||||||
Employee benefits |
||||||||||||
Contingent consideration |
16 | |||||||||||
|
|
|
|
|||||||||
Total non-current liabilities |
||||||||||||
|
|
|
|
|||||||||
Total liabilities |
||||||||||||
|
|
|
|
|||||||||
Net assets |
||||||||||||
|
|
|
|
|||||||||
Equity |
||||||||||||
Contributed equity |
17 | |||||||||||
Reserves |
||||||||||||
Accumulated losses |
( |
) | ( |
) | ||||||||
|
|
|
|
|||||||||
Total equity |
||||||||||||
|
|
|
|
* | The comparative information has been restated as a result of the prior period error discussed in note 3. |
Kazia Therapeutics Limited Statement of changes in equity For the half-year ended 31 December 2022 |
Issued capital |
Other contributed equity |
Share based payment reserve |
Foreign currency translation reserve |
Accumulated losses |
Total equity |
|||||||||||||||||||
Consolidated |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||
Balance at 1 July 2021 |
( |
) | ( |
) | ||||||||||||||||||||
Adjustment for correction of error (note 3) |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance at 1 July 2021 - restated |
( |
) | ( |
) | ||||||||||||||||||||
Loss after income tax benefit for the half-year |
( |
) | ( |
) | ||||||||||||||||||||
Other comprehensive income for the half-year, net of tax |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total comprehensive income for the half-year |
( |
) | ( |
) | ||||||||||||||||||||
Transactions with owners in their capacity as owners: |
||||||||||||||||||||||||
Immaterial reclassification |
( |
) | ||||||||||||||||||||||
Exercise of options |
( |
) | ||||||||||||||||||||||
Employee share-based payment options - expired |
( |
) | ||||||||||||||||||||||
Employee share-based payment options |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance at 31 December 2021 |
( |
) | ( |
) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Kazia Therapeutics Limited Statement of changes in equity For the half-year ended 31 December 2022 |
Issued capital |
Other contributed equity |
Share based payment reserve |
Foreign currency translation reserve |
Accumulated losses |
Total equity |
|||||||||||||||||||
Consolidated |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||
Balance at 1 July 2022 |
( |
) | ( |
) | ||||||||||||||||||||
Adjustment for correction of error (note 3) |
( |
) | ( |
) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance at 1 July 2022 - restated |
( |
) | ( |
) | ||||||||||||||||||||
Loss after income tax benefit for the half-year |
( |
) | ( |
) | ||||||||||||||||||||
Other comprehensive income for the half-year, net of tax |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total comprehensive income for the half-year |
( |
) | ( |
) | ||||||||||||||||||||
Issue of shares |
||||||||||||||||||||||||
Share issue costs |
( |
) | ( |
) | ||||||||||||||||||||
Transactions with owners in their capacity as owners: |
||||||||||||||||||||||||
Employee share-based payment options - expired |
( |
) | ||||||||||||||||||||||
Employee share-based payment options |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance at 31 December 2022 |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Kazia Therapeutics Limited Statement of cash flows For the half-year ended 31 December 2022 |
Consolidated |
||||||||||||
Note |
December 2022 |
December 2021 |
||||||||||
$ |
$ |
|||||||||||
Cash flows from operating activities |
||||||||||||
Payments to suppliers (inclusive of GST) |
( |
) | ( |
) | ||||||||
Net cash used in operating activities |
21 | ( |
) | ( |
) | |||||||
Cash flows from investing activities |
||||||||||||
Payment of milestone relating to contingent consideration |
16 | ( |
) | |||||||||
Net cash used in investing activities |
( |
) | ||||||||||
Cash flows from financing activities |
||||||||||||
Proceeds from issue of shares (net of costs) |
17 | |||||||||||
Net cash from financing activities |
||||||||||||
Net decrease in cash and cash equivalents |
( |
) | ( |
) | ||||||||
Cash and cash equivalents at the beginning of the financial half-year |
||||||||||||
Effects of exchange rate changes on cash and cash equivalents |
( |
) | ||||||||||
Cash and cash equivalents at the end of the financial half-year |
7 | |||||||||||
Kazia Therapeutics Limited Notes to the financial statements 31 December 2022 |
Kazia Therapeutics Limited Notes to the financial statements 31 December 2022 Note 1. Significant accounting policies (continued) |
Kazia Therapeutics Limited Notes to the financial statements 31 December 2022 |
30 June 2022 |
Increase/ (decrease) |
30 June 2022 Restated |
||||||||||
Intangibles - licensing agreement EVT-801 |
( |
) | ||||||||||
Less Accumulated amortisation |
( |
) | ( |
) | ||||||||
( |
) |
|||||||||||
Current contingent consideration EVT-801 |
( |
) | ( |
) | ||||||||
Non-Current contingent consideration EVT-801 |
( |
) | ( |
) | ||||||||
( |
) |
( |
) | |||||||||
Net Assets |
( |
) |
||||||||||
Accumulated losses |
( |
) | ( |
) | ( |
) | ||||||
Total equity |
( |
) |
||||||||||
Consolidated statement of profit and loss |
31 December 2021 |
(Increase)/ Decrease |
31 December 2021 Restated |
|||||||||
Research and development expense (Amortisation) |
( |
) | ( |
) | ||||||||
General and administrative expense (interest and foreign exchange impact) |
( |
) | ( |
) | ( |
) | ||||||
Loss before tax |
( |
) |
( |
) |
( |
) | ||||||
Income tax benefit |
||||||||||||
Loss after tax |
( |
) |
( |
) |
( |
) | ||||||
Impact on basic and diluted earnings per share increase/(decrease) in earning per share |
Cents |
Cents |
Cents |
|||||||||
Basic loss for the year attributable to equity holders |
( |
) | ( |
) | ( |
) | ||||||
Diluted loss for the year attributable to equity holders |
( |
) | ( |
) | ( |
) |
Kazia Therapeutics Limited Notes to the financial statements 31 December 2022 |
Consolidated |
||||||||
December 2022 |
December 2021 |
|||||||
$ |
$ |
|||||||
Government grants |
||||||||
Bad debt recovery |
||||||||
Other income |
||||||||
Consolidated |
||||||||
December 2022 $ |
December 2021 Restated * $ |
|||||||
Loss before income tax includes the following specific expenses: |
||||||||
Amortisation |
||||||||
Paxalisib licensing agreement |
||||||||
EVT-801 licensing agreement |
||||||||
Total amortisation |
||||||||
Interest expense |
||||||||
Contingent consideration |
||||||||
Superannuation expense |
||||||||
Defined contribution superannuation expense |
||||||||
Employee benefits expense excluding superannuation |
||||||||
Employee benefits expense excluding superannuation |
||||||||
Consolidated |
||||||||
December 2022 |
June 2022 |
|||||||
$ |
$ |
|||||||
Cash at bank and on hand |
||||||||
Kazia Therapeutics Limited Notes to the financial statements 31 December 2022 |
Consolidated |
||||||||
December 2022 |
June 2022 |
|||||||
$ |
$ |
|||||||
GST refundable |
||||||||
Paxalisib Phase II clinical trial refund |
||||||||
Deposit paid |
||||||||
Consolidated |
||||||||
December 2022 |
June 2022 |
|||||||
$ |
$ |
|||||||
Prepayments |
||||||||
Consolidated |
||||||||
December 2022 |
June 2022 Restated * |
|||||||
$ |
$ |
|||||||
Paxalisib Licensing agreement - at acquired fair value |
||||||||
Less: Accumulated amortisation |
( |
) | ( |
) | ||||
EVT-801 Licensing agreement - at cost |
||||||||
Less: Accumulated amortisation |
( |
) | ( |
) | ||||
EVT801 licensing agreement Restated* |
Paxalisib licensing agreement |
Total |
||||||||||
Consolidated |
$ |
$ |
$ |
|||||||||
Balance at 1 July 2022 |
||||||||||||
Amortisation expense |
( |
) | ( |
) | ( |
) | ||||||
Balance at 31 December 2022 |
||||||||||||
Kazia Therapeutics Limited Notes to the financial statements 31 December 2022 |
Consolidated |
||||||||
December |
June |
|||||||
2022 |
2022 |
|||||||
$ |
$ |
|||||||
GBM Agile deposit |
||||||||
Corporate credit card deposit |
||||||||
Consolidated |
||||||||
December |
June |
|||||||
2022 |
2022 |
|||||||
$ |
$ |
|||||||
Trade payables |
||||||||
Accrued and other payables |
||||||||
Consolidated |
||||||||
December |
June |
|||||||
2022 |
2022 |
|||||||
$ |
$ |
|||||||
Insurance premium funding |
||||||||
Consolidated |
||||||||
December |
June 2022 |
|||||||
2022 |
Restated * |
|||||||
$ |
$ |
|||||||
Contingent consideration - Paxalisib |
||||||||
Contingent consideration – EVT801 |
||||||||
Kazia Therapeutics Limited Notes to the financial statements 31 December 2022 |
Consolidated |
||||||||
December |
June 2022 |
|||||||
2022 |
Restated * |
|||||||
$ |
$ |
|||||||
Deferred tax liability |
||||||||
Amount expected to be settled after more than 12 months |
||||||||
Movements: |
||||||||
Opening balance |
||||||||
Credited to profit or loss |
( |
) | ( |
) | ||||
Closing balance |
||||||||
Consolidated |
||||||||
December |
June 2022 |
|||||||
2022 |
Restated * |
|||||||
$ |
$ |
|||||||
Contingent consideration - Paxalisib |
||||||||
Contingent consideration - EVT801 |
||||||||
Consolidated |
||||||||
December |
June 2022 |
|||||||
2022 |
Restated * |
|||||||
$ |
$ |
|||||||
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) |
||||||||
Payment of EVT801 milestone |
— | ( |
) | |||||
Interest |
||||||||
Foreign currency loss |
( |
) | ||||||
Loss on revaluation of contingent consideration |
||||||||
Kazia Therapeutics Limited Notes to the financial statements 31 December 2022 Note 16. Contingent consideration - non-current (continued) |
Consolidated |
||||||||||||||||
December |
June 2022 |
December |
June 2022 |
|||||||||||||
2022 |
Restated * |
2022 |
Restated * |
|||||||||||||
Shares |
Shares |
$ |
$ |
|||||||||||||
Ordinary shares - fully paid |
||||||||||||||||
Kazia Therapeutics Limited Notes to the financial statements 31 December 2022 Note 17. Contributed equity (continued) |
Details |
Date |
Shares |
Issue price |
$ |
||||||||||
Balance |
1 July 2022 | |||||||||||||
ATM issue of shares No. 8 |
7 July 2022 | $ | ||||||||||||
ATM issue of shares No. 9 |
8 August 2022 | $ | ||||||||||||
ATM issue of shares No. 10 |
9 August 2022 | $ | ||||||||||||
ATM issue of shares No. 11 |
10 August 2022 | $ | ||||||||||||
ATM issue of shares No. 12 |
11 August 2022 | $ | ||||||||||||
ATM issue of shares No. 13 |
12 August 2022 | $ | ||||||||||||
ATM issue of shares No. 14 |
12 September 2022 | $ | ||||||||||||
ATM issue of shares No. 15 |
13 September 2022 | $ | ||||||||||||
Scientific Advisory Board issue |
14 September 2022 | $ | ||||||||||||
ATM issue of shares No. 16 |
7 October 2022 | $ | ||||||||||||
ATM issue of shares No. 17 |
28 October 2022 | $ | ||||||||||||
Less: share issue transaction costs |
— | $ | ( |
) | ||||||||||
Balance |
31 December 2022 | |||||||||||||
Kazia Therapeutics Limited Notes to the financial statements 31 December 2022 |
Consolidated December 2022 |
Consolidated December 2021 Restated* |
|||||||
$ |
$ |
|||||||
Loss after income tax attributable to the owners of Kazia Therapeutics Limited |
( |
) | ( |
) | ||||
Number |
Number |
|||||||
Weighted average number of ordinary shares used in calculating basic earnings per share |
||||||||
Weighted average number of ordinary shares used in calculating diluted earnings per share |
||||||||
Cents |
Cents |
|||||||
Basic earnings per share |
( |
) | ( |
) | ||||
Diluted earnings per share |
( |
) | ( |
) |
Consolidated |
||||||||
December 2022 $ |
December 2021 Restated* $ |
|||||||
Loss after income tax benefit for the half-year |
( |
) | ( |
) | ||||
Adjustments for: |
||||||||
Depreciation and amortisation |
||||||||
Share—based payments |
||||||||
Foreign exchange differences |
( |
) | ||||||
Loss on contingent consideration |
||||||||
Contingent consideration interest |
||||||||
Change in operating assets and liabilities: Increase in trade and other receivables |
( |
) | ( |
) | ||||
(Increase)/decrease in prepayments |
( |
) | ||||||
Decrease in GBM Agile deposit |
— | |||||||
Increase in insurance premium funding |
— | |||||||
(Decrease)/increase in trade and other payables |
( |
) | ||||||
Decrease in deferred tax liabilities |
( |
) | ( |
) | ||||
Increase in employee benefits |
||||||||
Net cash used in operating activities |
( |
) | ( |
) | ||||
Kazia Therapeutics Limited Directors’ declaration 31 December 2022 |
• | 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 2022 and of its performance for the financial half-year ended on that date; and |
• | there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable. |
/s/ Iain Ross |
||||
Iain Ross | ||||
Chairman |
Tel: +61 2 9251 4100 Fax: +61 2 9240 9821 www.bdo.com.au |
Level 11, 1 Margaret Street Sydney NSW 2000 Australia |
(i) | Giving a true and fair view of the Group’s financial position as at 31 December 2022 and of its financial performance for the half-year ended on that date; and |
(ii) | Complying with Accounting Standard AASB 134 Interim Financial Reporting Corporations Regulations 2001. |