meso-ex991_34.htm

This half-year financial report is to be read in conjunction with the financial report for the period ended June 30, 2021.

	Up/down	% change		Amount reported for the half-year ended December 31, 2021 (USD’000)
Revenues from ordinary activities (item 2.1)	Up	69%	to	5,977

Loss from ordinary activities after tax attributable to members (item 2.2)	Down^*	3%	to	48,590

Net loss for the period attributable to members (item 2.3)	Down^*	3%	to	48,590
*decrease in loss

There are no dividends being proposed or declared for the period (item 2.4 and 2.5)

Commentary related to the above results Please refer to the Directors’ Report (please see the section titled Management’s Discussion and Analysis of Financial Condition and Results of Operations) within the Form 6-K for the three and six months ended December 31, 2021.

A large proportion of the Company’s assets are intangible in nature, consisting of goodwill, acquired licenses to patents, in-process research and development acquired and currently marketed products) and right-of-use assets. Our intangible assets primarily relate to the acquisition of both Mesoblast, Inc and the culture-expanded Mesenchymal Stem Cell technology. These assets and the associated provision for contingent consideration are excluded from the calculation of net tangible assets per security. As at December 31, 2021 and 2020, the value of deferred tax liabilities was $Nil.

The financial information provided in the Appendix 4D should be read in conjunction with the Report on Form 6-K (incorporating the Half-Year Report) for the three and six months ended December 31, 2021 which has been prepared in accordance with Australian Accounting Standards.

Directors’ Report - please refer to the section titled Management’s Discussion and Analysis of Financial Condition and Results of Operations within the Form 6-K.

Half-Year Financial Statement – please refer to the Financial Statements within the Form 6-K.

The financial report has been independently reviewed. The financial report is not subject to a qualified independent review statement. The independent audit review report includes the following statement:

We draw attention to Note 1(i) in the half-year financial report, which indicates that the Group held total cash reserves of $94.8 million as of 31 December 2021, and that further cash inflows will be required to meet forecast expenditure over the next twelve months. The ability of the Group to continue as a going concern and realise its assets and discharge its liabilities in the normal course of business are dependent on cash inflows from drawing from existing loan arrangements, subject to certain milestones, and/or by completing one or more strategic partnerships. These conditions, along with other matters set forth in Note 1(i), indicate that a material uncertainty exists that may cast significant doubt on the Group’s ability to continue as a going concern. Our conclusion is not modified in respect of this matter.

The independent audit review report is attached to the Financial Statements within the Form 6-K.

	December 31, 2021	December 31, 2020
Net tangible (liability) backing per ordinary security (in USD cents)	(4.40) cents	(7.09) cents