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 |
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 |
||||||||||||
Finance Income |
||||||||||||
Expenses |
||||||||||||
Research and development expense |
( |
) | ( |
) | ||||||||
General and administrative expense |
( |
) | ( |
) | ||||||||
Fair value gain on financial liabilities |
||||||||||||
Loss on revaluation of contingent consideration |
( |
) | ( |
) | ||||||||
Loss before income tax benefit |
4 | ( |
) | ( |
) | |||||||
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 |
( |
) | ( |
) | ||||||||
Cents |
Cents |
|||||||||||
Basic earnings per share |
20 | ( |
) | ( |
) | |||||||
Diluted earnings per share |
20 | ( |
) | ( |
) |
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 | |||||||||
Trade and other receivables |
6 | |||||||||
Other assets |
7 | |||||||||
Total current assets |
||||||||||
Non-current assets |
||||||||||
Intangibles |
8 | |||||||||
Other receivables |
9 | |||||||||
Total non-current assets |
||||||||||
Total assets |
||||||||||
Liabilities |
||||||||||
Current liabilities |
||||||||||
Trade and other payables |
10 | |||||||||
Other financial liabilities |
14 | — | ||||||||
Borrowings |
11 | |||||||||
Employee benefits |
||||||||||
Contingent consideration |
12 | |||||||||
Total current liabilities |
||||||||||
Non-current liabilities |
||||||||||
Deferred tax |
13 | |||||||||
Employee benefits |
||||||||||
Contingent consideration |
15 | |||||||||
Total non-current liabilities |
||||||||||
Total liabilities |
||||||||||
Net assets |
||||||||||
Equity |
||||||||||
Contributed equity |
16 | |||||||||
Unissued equity |
17 | — | ||||||||
Reserves |
18 | |||||||||
Accumulated losses |
( |
) | ( |
) | ||||||
Total equity |
||||||||||
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 |
( |
) | ( |
) | ||||||||||||||||
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 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 |
( |
) | ( |
) | ||||||||||||||||||||
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: |
||||||||||||||||||||||||
Issue of shares |
— | — | — | — | ||||||||||||||||||||
Share issue costs |
( |
) | — | — | — | — | ( |
) | ||||||||||||||||
Conversion of convertible promissory note |
— | — | — | — | ||||||||||||||||||||
Employee share- based payment options |
— | — | — | — | ||||||||||||||||||||
Balance at 31 December 2023 |
( |
) | ( |
) | ||||||||||||||||||||
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) |
( |
) | ( |
) | ||||||||
Interest paid |
( |
) | ||||||||||
Net cash used in operating activities |
21 | ( |
) | ( |
) | |||||||
Cash flows from financing activities |
||||||||||||
Proceeds from issue of shares (net of costs) |
16 | |||||||||||
Proceeds from borrowings |
17 | |||||||||||
Repayment of borrowings |
17 | ( |
) | |||||||||
Proceeds from issue of equity and pre-funded warrants |
14 | |||||||||||
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 |
5 | |||||||||||
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 |
||||||||||||
Interest expense |
||||||||||||
Borrowings |
||||||||||||
Contingent consideration – Effective Interest |
15 | |||||||||||
Superannuation expense |
||||||||||||
Defined contribution superannuation expense |
||||||||||||
Employee benefits expense excluding superannuation |
||||||||||||
Employee benefits expense excluding superannuation |
||||||||||||
Consolidated |
||||||||
December 2023 |
June 2023 |
|||||||
$ |
$ |
|||||||
Cash at bank and on hand |
||||||||
Kazia Therapeutics Limited Notes to the financial statements 31 December 2023 |
Consolidated |
||||||||
December 2023 |
June 2023 |
|||||||
$ |
$ |
|||||||
Trade receivables |
— | |||||||
GBM Agile deposit |
||||||||
Deposit paid |
||||||||
GST refundable |
||||||||
Consolidated |
||||||||
December 2023 |
June 2023 |
|||||||
$ |
$ |
|||||||
Prepayments |
||||||||
Consolidated |
||||||||
December 2023 |
June 2023 |
|||||||
$ |
$ |
|||||||
Paxalisib Licensing agreement — at acquired fair value |
||||||||
Less: Accumulated amortisation |
( |
) | ( |
) | ||||
EVT-801 Licensing agreement — at cost |
||||||||
Less: Accumulated amortisation |
( |
) | ( |
) | ||||
EVT801 licensing agreement |
Paxalisib licensing agreement |
Total | ||||||||||
Consolidated | $ | $ | $ | |||||||||
Balance at 1 July 2023 |
||||||||||||
Amortisation expense |
( |
) | ( |
) | ( |
) | ||||||
Balance at 31 December 2023 |
||||||||||||
Kazia Therapeutics Limited Notes to the financial statements 31 December 2023 |
Consolidated |
||||||||
December 2023 |
June 2023 |
|||||||
$ |
$ |
|||||||
Corporate credit card deposit |
||||||||
Consolidated |
||||||||
December 2023 |
June 2023 |
|||||||
$ |
$ |
|||||||
Trade payables |
||||||||
Accrued and other payables |
||||||||
Consolidated |
||||||||
December 2023 |
June 2023 |
|||||||
$ |
$ |
|||||||
Insurance premium funding |
||||||||
Consolidated |
||||||||
December 2023 |
June 2023 |
|||||||
$ |
$ |
|||||||
Contingent consideration — Paxalisib |
||||||||
Contingent consideration — EVT801 |
||||||||
Kazia Therapeutics Limited Notes to the financial statements 31 December 2023 |
Consolidated |
||||||||
December 2023 |
June 2023 |
|||||||
$ |
$ |
|||||||
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 2023 |
June 2023 |
|||||||
$ |
$ |
|||||||
Prefunded and ordinary warrants at initial recognition |
— | |||||||
Change in fair value |
||||||||
Prefunded and ordinary warrants at end period end |
— | |||||||
Kazia Therapeutics Limited Notes to the financial statements 31 December 2023 |
Consolidated |
||||||||
December 2023 |
June 2023 |
|||||||
$ |
$ |
|||||||
Contingent consideration — Paxalisib |
||||||||
Contingent consideration — EVT801 |
||||||||
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) |
||||||||
Interest |
||||||||
Foreign currency (gain)/loss |
( |
) | ||||||
Loss/(Gain) on revaluation of contingent consideration |
( |
) | ||||||
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 |
||||||||||||||||
Details |
Date |
Shares |
Issue price |
$ |
||||||||||||
Balance |
1 July 2023 | |||||||||||||||
ATM issue of shares No. 19 |
7 July 2023 | $ | ||||||||||||||
ATM issue of shares No. 20 |
11 July 2023 | $ | ||||||||||||||
ATM issue of shares No. 21 |
4 August 2023 | $ | ||||||||||||||
ATM issue of shares No. 22 |
30 November 2023 | $ | ||||||||||||||
Registered Direct Offering |
5 December 2023 | $ | — | |||||||||||||
Less: share issue transaction costs |
— | $ | ( |
) | ||||||||||||
Balance |
31 December 2023 | |||||||||||||||
Kazia Therapeutics Limited Notes to the financial statements 31 December 2023 |
Consolidated |
||||||||
December 2023 |
June 2023 |
|||||||
$ |
$ |
|||||||
Unissued equity |
||||||||
Consolidated |
||||||||
December 2023 |
June 2023 |
|||||||
$ |
$ |
|||||||
Foreign currency reserve |
( |
) | ( |
) | ||||
Share-based payments reserve |
||||||||
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 |
( |
) | ( |
) | ||||
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 2023 |
December 2022 |
|||||||
$ |
$ |
|||||||
Loss after income tax benefit for the half-year |
( |
) | ( |
) | ||||
Adjustments for: |
||||||||
Amortisation |
||||||||
Share-based payments |
||||||||
Foreign exchange differences |
( |
) | ||||||
Fair value losses on financial liabilities at fair value through profit or loss |
( |
) | — | |||||
Loss on contingent consideration |
||||||||
Contingent consideration interest |
||||||||
Change in operating assets and liabilities: |
||||||||
Decrease/(increase) in trade and other receivables |
( |
) | ||||||
Increase/(decrease) in GBM Agile deposit |
( |
) | ||||||
(Decrease)/increase in prepayments |
( |
) | ||||||
(Decrease)/increase in insurance premium funding |
( |
) | ||||||
Increase/(decrease) in trade and other payables |
( |
) | ||||||
Decrease in deferred tax liabilities |
( |
) | ( |
) | ||||
(Decrease)/increase in employee benefits |
( |
) | ||||||
Net cash used in operating activities |
( |
) | ( |
) | ||||
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 |