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Related Party Transactions
 12 Months Ended
Jun. 30, 2023
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS

21. RELATED PARTY TRANSACTIONS

 

a.Equity Interests in Subsidiaries

 

Alterity Therapeutics Limited owns 100% of its subsidiaries, Alterity Therapeutics Inc. and Alterity Therapeutics UK Ltd.

 

b.Key Management Personnel Remuneration

 

The Directors of Alterity during the year:

 

Mr. Geoffrey Kempler, Chairman

Mr. Brian Meltzer, Independent Non-Executive Director

Mr. Peter Marks, Independent Non-Executive Director

Mr. Lawrence Gozlan, Non-Executive Director

 

The Key Management Personnel of the Group during the year:

 

Dr. David Stamler Chief Executive Officer
Ms. Kathryn Andrews Chief Financial Officer

 

Remuneration of all key management personnel of the Group is determined by the Board of Directors following recommendation by the Remuneration Committee.

 

The Group is committed to remunerating senior executives in a manner that is market competitive and consistent with ‘best practice’ including the interests of shareholders. Remuneration packages are based on fixed and variable components, determined by the executive’s position, experience and performance, and may be satisfied via cash or equity.

 

Non-executive Directors are remunerated out of the aggregate amount approved by shareholders and at a level that is consistent with industry standards. Non-executive Directors do not receive performance based bonuses and prior shareholder approval is required to participate in any issuance of equity. No retirement benefits are payable other than statutory superannuation, if applicable.

 

The Group’s remuneration policy is not solely based on the Group’s performance, but also on industry practice.

 

The Group’s primary focus is research activities with a long term objective of developing and commercializing its research and development results.

 

The Group envisages its performance in terms of earnings will remain negative whilst the Group continues in the research and clinical trials. Shareholder wealth reflects this speculative and volatile market sector. This pattern is indicative of the Group’s performance over the past four years.

 

The purpose of a performance bonus is to reward individual performance in line with Group objectives. Consequently, performance based remuneration is paid to an individual where the individual’s performance clearly contributes to a successful outcome for the Group. This is regularly measured in respect of performance against key performance indicators (“KPI’s”).

 

The Group uses a variety of KPI’s to determine achievement, depending on the role of the executive being assessed.

 

           Post-Employment   Long Term Benefits             
2023  Short Term Benefits   Superannuation   Long-service   Termination   Equity     
   Base Fee   Bonus   Contribution   Leave   Benefit   Options   Total 
Directors’ remuneration  A$   A$   A$   A$   A$   A$   A$ 
Mr. Geoffrey Kempler (2)   302,800    
-
    10,500    
-
    
-
    
-
    313,300 
Mr. Brian Meltzer   63,348    
-
    6,652    
-
    
-
    
-
    70,000 
Mr. Peter Marks   70,000    
    -
    
-
    
    -
    
        -
    
-
    70,000 
Mr. Lawrence Gozlan   70,000    
-
    
-
    
-
    
-
    
-
    70,000 
    506,148    
-
    17,152    
-
    
-
    
-
    523,300 
                                    
Other key management personnel                                   
Dr. David Stamler (1)   731,381    194,570    
-
    
-
    
-
    724,047    1,649,998 
Ms. Kathryn Andrews (1)   294,921    
-
    25,292    7,215    
-
    40,128    367,556 
    1,026,302    194,570    25,292    7,215    
-
    764,175    2,017,554 
Total   1,532,450    194,570    42,444    7,215    
-
    764,175    2,540,854 

 

(1) Base Fee includes movements in the annual leave provision for Ms. Kathryn Andrews and Dr. David Stamler in accordance with their employment contracts.
(2) Includes A$202,800 in corporate advisory fees paid to an associated entity of Mr. Geoffrey Kempler for business advisory services including investor relations, marketing and business development.

 

       Post-Employment   Long Term Benefits             
2022  Short Term Benefits   Superannuation   Long-service   Termination   Equity     
   Base Fee   Bonus   Contribution   Leave   Benefit   Options   Total 
Directors’ remuneration  A$   A$   A$   A$   A$   A$   A$ 
Mr. Geoffrey Kempler (2)    377,800    
-
    10,000    
-
    
-
    
-
    387,800 
Mr. Brian Meltzer    63,636    
-
    6,359    
-
    
       -
    
-
    69,995 
Mr. Peter Marks    70,000    
-
    
-
    
    -
    
-
    
    -
    70,000 
Mr. Lawrence Gozlan (3)    107,500    
      -
    
-
    
-
    
-
    
-
    107,500 
Dr. David Sinclair (4)    34,888    
-
    
-
    
-
    
-
    
-
    34,888 
Mr. Tristan Edwards (4)    31,819    
-
    4,194    
-
    
-
    
-
    36,013 
    685,643    
-
    20,553    
-
    
-
    
-
    706,196 
                                    
Other key management personnel                                    
Dr. David Stamler (1)    658,393    
-
    
-
    
-
    
-
    965,633    1,624,026 
Ms. Kathryn Andrews (1)    296,979    
-
    23,568    6,711    
-
    32,531    359,789 
    955,372    
-
    23,568    6,711    
-
    998,164    1,983,815 
Total    1,641,015    
-
    44,121    6,711    
-
    998,164    2,690,011 

 

(1)Base Fee includes movements in the annual leave provision for Ms. Kathryn Andrews and Dr. David Stamler in accordance with their employment contracts.
(2)Includes A$277,800 in corporate advisory fees paid to an associated entity of Mr. Geoffrey Kempler for business advisory services including investor relations, marketing and business development.
(3)Includes A$37,500 in corporate advisory fees paid to an associated entity of Mr. Lawrence Gozlan for corporate advisory services including seeking and advancing opportunities to expand the Group’s product pipeline and other sources of funding to commence and continue the Group’s clinical trials.
(4)David Sinclair and Tristan Edwards resigned on January 4, 2022.

 

       Post-Employment   Long Term Benefits             
2021  Short Term Benefits   Superannuation   Long-service       Equity     
   Base Fee   Bonus   Contribution   Leave   Termination   Options   Total 
Directors’ remuneration  A$   A$   A$   A$       A$   A$ 
Mr. Geoffrey Kempler (2)   487,292    
-
    16,184    (121,542)   1,000,000    450,777    1,832,711 
Mr. Brian Meltzer   66,209    
           -
    6,290    
-
         225,389    297,888 
Mr. Peter Marks   68,333    
-
    
-
    
-
         225,389    293,722 
Mr. Lawrence Gozlan (3)   218,333    
-
    
-
    
-
    
 
    225,389    443,722 
Dr. David Sinclair   65,800    
-
    
-
    
-
         225,389    291,189 
Mr. Tristan Edwards   64,774    
-
    1,012    
-
         225,389    291,175 
    970,741    
-
    23,486    (121,542)   1,000,000    1,577,722    3,450,407 
                                    
Other key management personnel                                   
Dr. David Stamler (1)(4)   606,058    
-
    
-
    
-
    
-
    372,843    978,901 
Ms. Kathryn Andrews (1)   314,978    
-
    21,694    11,257    
-
    
-
    347,929 
    921,036    
-
    21,694    11,257         372,843    1,326,830 
Total   1,891,777    
-
    45,180    (110,285)   1,000,000    1,950,565    4,777,237 

 

(1)Base Fee includes movements in the annual leave provision for Ms. Kathryn Andrews and Dr. David Stamler in accordance with their employment contracts.
(2) Upon termination of employment as Chief Executive Officer on January 7, 2021 Mr. Geoffrey Kempler received the sum of A$1 million in accordance with his employment agreement dated September 21, 2007 and accrued leave entitlements. His remuneration includes A$102,361 in corporate advisory fees paid to an associated entity of Mr. Geoffrey Kempler for business advisory services including investor relations, marketing and business development.
(3) Includes A$150,000 in corporate advisory fees paid to an associated entity of Mr. Lawrence Gozlan for corporate advisory services including seeking and advancing opportunities to expand the Group’s product pipeline and other sources of funding to commence and continue the Group’s clinical trials.
(4) Remuneration of Dr. David Stamler covered his previous role as Chief Medical Officer and Senior Vice President Clinical Development from July 1, 2020 to January 6. 2021 and CEO effective January 7, 2021.

 

The following Senior Executives were under contract during the year ended June 30, 2022:

 

Key management personnel   Duration   Notice Requirements   Termination
Kathryn Andrews  

Until termination by either party.

Signed November 11, 2014

   Ms Andrews may terminate with 30 days’ notice, or   Accrued entitlements including all unreimbursed business expenses.
             
       

Without Cause the Group may terminate with 30 days’ notice, or

 

With Cause the Group may terminate without notice

   Permitted to keep and/or exercise options that have vested at the time of termination.
             
David Stamler  

Until termination by either party.  

 

Signed January 6, 2021.

   Each party will be required to provide 6 months’ notice of termination unless otherwise agreed to in writing.  

Accrued entitlements including all unreimbursed business expenses.

 

Vested but unexercised options shall be exercisable within 30 days after the date of termination.

 

Unvested options will terminate automatically without further notice.

             
        For good reason, Dr Stamler may terminate at any time upon written notice.  

Payment equivalent to one hundred percent of current annualized salary.

 

Accrued entitlements including all unreimbursed business expenses.

 

Vested but unexercised options shall be exercisable within 30 days after the date of termination.

 

Unvested options will terminate automatically without further notice.

             
        With Cause, the Group may terminate at any time upon written notice   Payment limited to accrued salary, accrued but unused vacation pay and approved but unreimbursed expenses that are owed to date of termination
             
            All options shall be canceled upon date of termination

 

c.Key Management Personnel Equity Holdings

 

   Balance
July 1,
2022		   Received as
Remuneration		   Received on
Exercise of
Options		   Net Change
Other		   Balance
June 30,
2023		 
Fully Paid Ordinary Shares of the Group  No.   No.   No.   No.   No. 
Mr. Geoffrey Kempler   18,011,000    
-
    
-
    
-
    18,011,000 
Mr. Lawrence Gozlan   
-
    
-
    
-
    
-
    
-
 
Mr. Brian Meltzer   326,666    
-
    
-
    
-
    326,666 
Mr. Peter Marks   43,111    
     -
    
-
    
    -
    43,111 
Ms. Kathryn Andrews   
-
    
-
    
       -
    
-
    
-
 
Dr. David Stamler   
-
    
-
    
-
    3,555,000    3,555,000 
                          
    18,380,777    
-
    
-
    3,555,000    21,935,777 

 

  

Balance
July 1,
2021

   Received as
Remuneration		   Received on
Exercise of
Options		   Net Change
Other		   Balance
June 30,
2022		 
Fully Paid Ordinary Shares of the Group  No.   No.   No.   No.   No. 
Mr. Geoffrey Kempler   18,011,000    
-
    
-
    
-
    18,011,000 
Mr. Lawrence Gozlan   
-
    
      -
    
     -
    
-
    
-
 
Mr. Brian Meltzer   326,666    
-
    
-
    
      -
    326,666 
Mr. Peter Marks   43,111    
-
    
-
    
-
    43,111 
Dr. David Sinclair   (1)   
-
    
-
    
-
    
-
    
-
 
Mr. Tristan Edwards (1)   
-
    
-
    
-
    
-
    
-
 
Ms. Kathryn Andrews   
-
    
-
    
-
    
-
    
-
 
Dr. David Stamler   
-
    
-
    
-
    
-
    
-
 
                          
    18,380,777    
-
    
-
    
-
    18,380,777 

   

(1) David Sinclair and Tristan Edwards resigned on January 4, 2022.

 

   Balance
July 1,
2020		   Received as
Remuneration		   Received on
Exercise of
Options		   Net Change
Other		   Balance
June 30,
2021		 
Fully Paid Ordinary Shares of the Group  No.   No.   No.   No.   No. 
Mr. Geoffrey Kempler   18,011,000    
-
    
-
    
-
    18,011,000 
Mr. Lawrence Gozlan   
-
    
        -
    
      -
    
        -
    
-
 
Mr. Brian Meltzer   326,666    
-
    
-
    
-
    326,666 
Mr. Peter Marks   43,111    
-
    
-
    
-
    43,111 
Dr. David Sinclair   
-
    
-
    
-
    
-
    
-
 
Mr. Tristan Edwards   
-
    
-
    
-
    
-
    
-
 
Ms. Kathryn Andrews   
-
    
-
    
-
    
-
    
-
 
Dr. David Stamler   
-
    
-
    
-
    
-
    
-
 
                          
    18,380,777    
-
    
-
    
-
    18,380,777 

 

Share Options of the Group  Balance
July 1,
2022
No.		   Granted as Remuneration
No.		   Options Exercised
No.		   Options Expired
No.		   Options Forfeited
No.		   Net Change
Other		   Options Vested During the year   Balance
June 30,
2023
No.		   Total Vested and Exercisable
June 30,
2023
No.		   Total Unvested
June 30,
2023
No.		 
Mr. Geoffrey Kempler   19,000,000             -          -    (5,000,000)         -          -          -    14,000,000    14,000,000         - 
Mr. Lawrence Gozlan   8,250,000    -    -    (1,250,000)   -    -    -    7,000,000    7,000,000    - 
Mr. Brian Meltzer   8,250,000    -    -    (1,250,000)   -    -    -    7,000,000    7,000,000    - 
Mr. Peter Marks   8,250,000    -    -    (1,250,000)   -    -    -    7,000,000    7,000,000    - 
Ms. Kathryn Andrews   5,000,000    -    -    -    -    -    -    5,000,000    1,250,000    3,750,000 
Dr. David Stamler   91,392,720    -    -    -    -    -    -    91,392,720    32,368,255    59,024,465 
    140,142,720    -    -    (8,750,000)   -    -    -    131,392,720    68,618,255    62,774,465 

 

Share Options of the Group  Balance
July 1,
2021
No.		   Granted as Remuneration
No.		   Options Exercised
No.		   Options Expired
No.		   Options Forfeited
No.		   Net Change
Other		   Options Vested During the year   Balance
June 30,
2022
No.		   Total
Vested and Exercisable
June 30,
2022
No.		   Total
Unvested
June 30,
2022
No.		 
Mr. Geoffrey Kempler   19,000,000    -          -    -    -           -          -    19,000,000    19,000,000    - 
Mr. Lawrence Gozlan   8,250,000    -    -    -    -    -    -    8,250,000    8,250,000    - 
Mr. Brian Meltzer   8,250,000    -    -    -    -    -    -    8,250,000    8,250,000    - 
Mr. Peter Marks   8,250,000    -    -    -    -    -    -    8,250,000    8,250,000    - 
Dr. David Sinclair (1)   7,000,000    -    -    -    (7,000,000)   -    -    -    -    - 
Mr. Tristan Edwards (1)   7,000,000    -    -    -    (7,000,000)   -    -    -    -    - 
Ms. Kathryn Andrews   500,000    5,000,000    -    (500,000)   -    -    -    5,000,000    -    5,000,000 
Dr. David Stamler   95,392,720    -    -    (4,000,000)   -    -    -    91,392,720    -    91,392,720 
    153,642,720    5,000,000    -    (4,500,000)   (14,000,000)   -    -    140,142,720    43,750,000    96,392,720 

  

(1) David Sinclair and Tristan Edwards resigned on January 4, 2022.

 

Share Options of the Group  Balance
July 1,
2020
No.		   Granted as Remuneration
No.		   Options Exercised
No.		   Options Expired
No.		   Options Forfeited
No.		   Net Change
Other		   Options Vested During the year   Balance
June 30,
2021
No.		   Total
Vested and Exercisable
June 30,
2021
No.		   Total
Unvested
June 30,
2021
No.		 
Mr. Geoffrey Kempler   5,000,000    14,000,000          -          -         -         -    14,000,000    19,000,000    19,000,000    - 
Mr. Lawrence Gozlan   1,250,000    7,000,000    -    -    -    -    7,000,000    8,250,000    8,250,000    - 
Mr. Brian Meltzer   1,250,000    7,000,000    -    -    -    -    7,000,000    8,250,000    8,250,000    - 
Mr. Peter Marks   1,250,000    7,000,000    -    -    -    -    7,000,000    8,250,000    8,250,000    - 
Dr. David Sinclair   -    7,000,000    -    -    -    -    7,000,000    7,000,000    7,000,000    - 
Mr. Tristan Edwards   -    7,000,000    -    -    -    -    7,000,000    7,000,000    7,000,000    - 
Ms. Kathryn Andrews   500,000    -    -    -    -    -    -    500,000    500,000    - 
Dr. David Stamler   4,000,000    91,392,720    -    -    -    -    -    95,392,720    4,000,000    91,392,720 
    13,250,000    140,392,720    -    -    -    -    49,000,000    153,642,720    62,250,000    91,392,720