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Alterity Therapeutics Limited
Preliminary Final Report - 30 June 2024
Alterity Therapeutics Limited
Appendix 4E - Preliminary Final Report
year ended 30 June 2024
| Name of entity | Alterity Therapeutics Limited |
| ABN or equivalent company reference | 37 080 699 065 |
| Current reporting period | 30 June 2024 |
| Corresponding reporting period | 30 June 2023 |
Results for announcement to the market
| $ | ||||||||||||
| Revenue for ordinary activities | Up | 1,533.1 | % | to | 268,419 | |||||||
| Net loss after tax (from ordinary activities) for the year attributable to members | Up | 38.5 | % | to | 19,123,464 | |||||||
| Net loss after tax for the year attributable to members | Up | 38.5 | % | to | 19,123,464 |
Net tangible assets per share
| 30 June 2024 | 30 June 2023 | |||||||
| Net tangible asset backing per share (cents) | 0.27 | 0.94 |
No dividends have been paid during the financial year (2023:
nil). The Directors do not recommend the payment of a dividend in respect of the current financial year (2023: nil).
Principal activities
The Group's principal activities
during the course of the year were to develop disease modifying treatments for neurodegenerative disease. There have been no significant
changes in the nature of those principal activities during the financial year.
Explanation of results
Alterity Therapeutics Limited recorded revenue
of $268,419 for the year ended 30 June 2024 (2023: $16,436), which is interest received on the Group's bank accounts. Alterity
Therapeutics Limited has incurred a loss for the year of $19,123,464 (2023: $13,806,515).
As at 30 June 2024 the company's
cash position was $12,638,885 (30 June 2023: $15,773,783).
The preliminary report follows, with the further details
to be included in the audited financial statements to be released by 30 September 2024.
Changes in controlled entities
Other information required by Listing Rule 4.3A
Alterity Therapeutics Limited is
a company limited by shares that was incorporated in and is domiciled in Australia. Alterity Therapeutics Limited has 2 wholly owned subsidiaries:
| Alterity Therapeutics Inc., a company limited by shares that was incorporated in and is domiciled in the United States; and | |
| Alterity Therapeutics UK Limited, a company limited by shares that was incorporated in and is domiciled in the United Kingdom. |
The financial statements are currently
in the process of being audited. The audited financial statements along with the independent auditor report for the year end 30 June 2024
will be provided in due course.
This report is based on accounts
which are in the process of being audited. The 30 June 2024 financial report, when audited, is likely to contain an independent auditor's
report which includes a material uncertainty that may cast significant doubt about the Company's ability to continue as a going
concern. Additional disclosure has been included in Note 7 to the financial statements.
Alterity Therapeutics Limited
Consolidated statement of profit or
loss and other comprehensive income
For the year ended 30 June 2024
| Notes | 2024 | 2023 | ||||||||
| $ | $ | |||||||||
| Interest income | 1 | 268,419 | 16,436 | |||||||
| Other income | 1 | 4,019,285 | 3,916,333 | |||||||
| Expenses | ||||||||||
| Intellectual property expenses | (214,304 | ) | (285,067 | ) | ||||||
| General and administration expenses | 2 | (4,762,643 | ) | (5,039,421 | ) | |||||
| Research and development expenses | 2 | (18,644,047 | ) | (13,198,583 | ) | |||||
| Other operating expenses | (5,238 | ) | (29,404 | ) | ||||||
| Other gains/(losses) | 2 | 261,152 | 917,650 | |||||||
| Loss before income tax | (19,077,376 | ) | (13,702,056 | ) | ||||||
| Income tax expense | (46,088 | ) | (104,459 | ) | ||||||
| Loss for the year | (19,123,464 | ) | (13,806,515 | ) | ||||||
| Other comprehensive income | ||||||||||
| Other comprehensive income for the year, net of tax | - | - | ||||||||
| Total comprehensive loss for the year | (19,123,464 | ) | (13,806,515 | ) |
| Cents | Cents | |||||||||
| Loss per share for profit attributable to the ordinary equity holders of the company: | ||||||||||
| Diluted loss per share | 0.52 | 0.57 |
Alterity Therapeutics Limited
Consolidated statement of financial
| Notes | 30 June 2024 | 30 June 2023 | ||||||||
| $ | $ | |||||||||
| ASSETS | ||||||||||
| Current assets | ||||||||||
| Cash and cash equivalents | 12,638,885 | 15,773,783 | ||||||||
| Trade and other receivables | 3(a) | 4,041,675 | 8,665,704 | |||||||
| Other current assets | 4(a) | 2,356,300 | 2,609,286 | |||||||
| Total current assets | 19,036,860 | 27,048,773 | ||||||||
| Non-current assets | ||||||||||
| Property, plant and equipment | 32,154 | 61,776 | ||||||||
| Right-of-use assets | 154,729 | 207,087 | ||||||||
| Total non-current assets | 186,883 | 268,863 | ||||||||
| Total assets | 19,223,743 | 27,317,636 | ||||||||
| LIABILITIES | ||||||||||
| Current liabilities | ||||||||||
| Trade and other payables | 3(c) | 4,619,947 | 3,517,708 | |||||||
| Provisions | 4(b) | 530,699 | 729,202 | |||||||
| Other current liabilities | 100,000 | - | ||||||||
| Lease liabilities | 107,131 | 107,177 | ||||||||
| Current tax liabilities | 15,995 | 27,930 | ||||||||
| Total current liabilities | 5,373,772 | 4,382,017 | ||||||||
| Non-current liabilities | ||||||||||
| Provisions | - | 19,503 | ||||||||
| Lease liabilities | 51,914 | 103,207 | ||||||||
| Total non-current liabilities | 51,914 | 122,710 | ||||||||
| Total liabilities | 5,425,686 | 4,504,727 | ||||||||
| Net assets | 13,798,057 | 22,812,909 | ||||||||
| EQUITY | ||||||||||
| Contributed equity | 5(a) | 223,152,985 | 213,971,323 | |||||||
| Reserves | 5(c) | 4,806,203 | 3,972,475 | |||||||
| Accumulated losses | 5(b) | (214,161,131 | ) | (195,130,889 | ) | |||||
| Total equity | 13,798,057 | 22,812,909 |
Alterity Therapeutics Limited
statement of changes in equity
For the year ended 30 June 2024
| Attributable to owners of Alterity Therapeutics Limited | ||||||||||||||||||
| Notes | Contributed equity | Reserves | Accumulated losses | Total equity | ||||||||||||||
| $ | $ | $ | $ | |||||||||||||||
| Balance at 1 July 2022 | 213,787,061 | 3,565,918 | (181,884,388 | ) | 35,468,591 | |||||||||||||
| Loss for the year | - | - | (13,806,515 | ) | (13,806,515 | ) | ||||||||||||
| Total comprehensive loss for the year | - | - | (13,806,515 | ) | (13,806,515 | ) | ||||||||||||
| Transactions with owners in their capacity as owners: | ||||||||||||||||||
| Issue of ordinary shares | 316,675 | - | - | 316,675 | ||||||||||||||
| Issue of options | 983,721 | 983,721 | ||||||||||||||||
| Transaction costs | (132,413 | ) | - | - | (132,413 | ) | ||||||||||||
| Expired options | - | (560,014 | ) | 560,014 | - | |||||||||||||
| Forfeited options | (17,150 | ) | (17,150 | ) | ||||||||||||||
| 184,262 | 406,557 | 560,014 | 1,150,833 | |||||||||||||||
| Balance at 30 June 2023 | 213,971,323 | 3,972,475 | (195,130,889 | ) | 22,812,909 | |||||||||||||
| Balance at 1 July 2023 | 213,971,323 | 3,972,475 | (195,130,889 | ) | 22,812,909 | |||||||||||||
| Loss for the year | - | - | (19,123,464 | ) | (19,123,464 | ) | ||||||||||||
| Total comprehensive loss for the year | - | - | (19,123,464 | ) | (19,123,464 | ) | ||||||||||||
| Transactions with owners in their capacity as owners: | ||||||||||||||||||
| Issue of ordinary shares | 10,099,682 | 10,099,682 | ||||||||||||||||
| Equity to be issued | 5(a) | - | 45,000 | - | 45,000 | |||||||||||||
| Issue of options | - | 881,950 | - | 881,950 | ||||||||||||||
| Transaction costs | (918,020 | ) | - | - | (918,020 | ) | ||||||||||||
| Forfeited options | - | (93,222 | ) | 93,222 | - | |||||||||||||
| 9,181,662 | 833,728 | 93,222 | 10,108,612 | |||||||||||||||
| Balance at 30 June 2024 | 223,152,985 | 4,806,203 | (214,161,131 | ) | 13,798,057 |
Alterity Therapeutics
Consolidated statement of cash flows
For the year ended 30 June 2024
| 2024 | 2023 | |||||||
| $ | $ | |||||||
| Cash flows from operating activities | ||||||||
| Payments to suppliers and employees | (21,393,136 | ) | (19,943,617 | ) | ||||
| Interest received | 269,075 | 15,798 | ||||||
| R&D tax incentive refund | 8,583,477 | - | ||||||
| Interest paid | (7,217 | ) | (4,565 | ) | ||||
| Income taxes paid | (58,023 | ) | (103,453 | ) | ||||
| Net cash inflow (outflow) from operating activities | (12,605,824 | ) | (20,035,837 | ) | ||||
| Cash flows from investing activities | ||||||||
| Payments for rental security deposits | - | (29,150 | ) | |||||
| Payments for property, plant and equipment | (5,722 | ) | (7,311 | ) | ||||
| Net cash inflow (outflow) from investing activities | (5,722 | ) | (36,461 | ) | ||||
| Cash flows from financing activities | ||||||||
| Proceeds from issue of shares and other equity securities | 10,144,682 | 316,675 | ||||||
| Transaction costs relating to issue of equity | (918,020 | ) | (132,413 | ) | ||||
| Principle elements of lease payments | (10,370 | ) | (59,922 | ) | ||||
| Net cash inflow (outflow) from financing activities | 9,216,292 | 124,340 | ||||||
| Net increase (decrease) in cash and cash equivalents | (3,395,254 | ) | ( 19,947,958 | ) | ||||
| Cash and cash equivalents at the beginning of the financial year | 15,773,783 | 34,806,799 | ||||||
| Effects of exchange rate changes on cash and cash equivalents | 260,356 | 914,942 | ||||||
| Cash and cash equivalents at end of year | 12,638,885 | 15,773,783 |
Alterity Therapeutics
Notes to the financial statements
| 2024 | 2023 | |||||||
| $ | $ | |||||||
| Interest income | 268,419 | 16,436 | ||||||
| R&D tax incentive (1) | 4,019,285 | 3,914,230 | ||||||
| Miscellaneous income | - | 2,103 | ||||||
| 4,287,704 | 3,932,769 |
| 2024 | 2023 | |||||||
| $ | $ | |||||||
| Loss before income tax has been determined after: | ||||||||
| General and administration expenses | ||||||||
| Depreciation on fixed assets | 35,344 | 37,854 | ||||||
| Depreciation on leased assets | 112,185 | 64,409 | ||||||
| Employee expenses (non R&D related) | 515,803 | 926,314 | ||||||
| Consultant and director expenses | 321,000 | 320,500 | ||||||
| Audit, internal control and other assurance expenses | 241,828 | 238,728 | ||||||
| Corporate compliance expenses | 790,350 | 457,215 | ||||||
| Insurance expenses | 676,219 | 721,732 | ||||||
| Other administrative and office expenses | 1,018,962 | 1,101,477 | ||||||
| Share-based payment expenses | 881,950 | 966,571 | ||||||
| Corporate advisory | 169,000 | 204,621 | ||||||
| 4,762,641 | 5,039,421 | |||||||
| Research and development expenses 1 | ||||||||
| Employee expenses | 2,456,230 | 2,720,345 | ||||||
| Other research and development expenses | 16,187,817 | 10,478,238 | ||||||
| 18,644,047 | 13,198,583 | |||||||
| Other operating expenses | ||||||||
| Foreign exchange (gain)/loss | (261,152 | ) | (917,650 | ) | ||||
| (261,152 | ) | (917,650 | ) |
Alterity Therapeutics
Notes to the financial statements
| 30 June 2024 | 30 June 2023 | |||||||||||||||||||||||
| Current | Non- current | Total | Current | Non- current | Total | |||||||||||||||||||
| $ | $ | $ | $ | $ | $ | |||||||||||||||||||
| R&D tax incentive receivable | 4,019,286 | - | 4,019,286 | 8,583,635 | - | 8,583,635 | ||||||||||||||||||
| Accrued interest income | 157 | - | 157 | 656 | - | 656 | ||||||||||||||||||
| Goods and services tax receivable | 22,232 | - | 22,232 | 16,184 | - | 16,184 | ||||||||||||||||||
| Other receivable | - | - | - | 65,229 | - | 65,229 | ||||||||||||||||||
| 4,041,675 | - | 4,041,675 | 8,665,704 | - | 8,665,704 |
R&D tax incentive receivable represents the amount of R&D
tax incentive the Group expects to recover. For further details, see note 1.
Due to the short-term nature of the current receivables, their
carrying amount is considered to be the same as their fair value.
| 30 June 2024 | 30 June 2023 | |||||||
| $ | $ | |||||||
| Cash at bank and in hand | 12,638,885 | 15,581,070 | ||||||
| Deposits at call | - | 192,713 | ||||||
| 12,638,885 | 15,773,783 |
Term deposits are presented as cash equivalents if they have
a maturity of three months or less from the date of acquisition and are repayable with 24 hours' notice with no loss of interest.
Alterity Therapeutics
Notes to the financial statements
| 30 June 2024 | 30 June 2023 | |||||||||||||||||||||||||
| Notes | Current | Non- current | Total | Current | Non- current | Total | ||||||||||||||||||||
| $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
| Trade payables | 581,137 | - | 581,137 | 1,716,135 | - | 1,716,135 | ||||||||||||||||||||
| Accrued research and development expenses | 3,499,960 | - | 3,499,960 | 1,458,310 | - | 1,458,310 | ||||||||||||||||||||
| Accrued personnel fees | 166,063 | - | 166,063 | - | - | - | ||||||||||||||||||||
| Accrued professional fees | 234,899 | - | 234,899 | 222,126 | - | 222,126 | ||||||||||||||||||||
| Other accrued expenses | 123,457 | - | 123,457 | 87,223 | - | 87,223 | ||||||||||||||||||||
| Other payables | 14,431 | - | 14,431 | 33,914 | - | 33,914 | ||||||||||||||||||||
| 4,619,947 | - | 4,619,947 | 3,517,708 | - | 3,517,708 |
Trade payables are unsecured and are usually paid within 30
days of recognition.
This note provides information about the group's non-financial
assets and liabilities, including:
| 30 June 2024 | 30 June 2023 | |||||||
| $ | $ | |||||||
| Prepayments | 2,315,632 | 2,569,522 | ||||||
| Others | 40,668 | 39,764 | ||||||
| 2,356,300 | 2,609,286 |
Alterity Therapeutics
Notes to the financial statements
| 30 June 2024 | 30 June 2023 | |||||||||||||||||||||||
| Current | Non- current | Total | Current | Non- current | Total | |||||||||||||||||||
| $ | $ | $ | $ | $ | $ | |||||||||||||||||||
| Annual leave | 318,694 | - | 318,694 | 420,380 | - | 420,380 | ||||||||||||||||||
| Long service leave | 212,005 | - | 212,005 | 308,822 | 19,503 | 328,325 | ||||||||||||||||||
| 530,699 | - | 530,699 | 729,202 | 19,503 | 748,705 |
A provision has been recognised for
employee entitlements relating to long service leave. In calculating the present value of future cash flows in respect of long service
leave, the probability of long service leave being taken is based on historical data.
The current provision for long service
leave includes all unconditional entitlements where employees have completed the required period of service and also those where employees
are entitled to pro-rata payments in certain circumstances. Majority of the balance is presented as current, since the Group does not
have an unconditional right to defer settlement. However, based on past experience, the Group does not expect all employees to take the
full amount of accrued long service leave or require payment within the next 12 months.
| 30 June 2024 | 30 June 2023 | |||||||
| Annual Leave | ||||||||
| Carrying amount at start of year | 420,380 | 371,877 | ||||||
| Charged/ (credited) to profit or loss - additional provisions recognised | 179,923 | 272,502 | ||||||
| Amounts used during the year | (280,618 | ) | (232,747 | ) | ||||
| Change in foreign exchange | (991 | ) | 8,748 | |||||
| Carrying amount at end of year | 318,694 | 420,380 |
| 30 June 2024 | 30 June 2023 | |||||||
| Long service leave | ||||||||
| Carrying amount at start of year | 328,325 | 298,143 | ||||||
| Charged/ (credited) to profit or loss - additional provisions recognised | 30,308 | 30,182 | ||||||
| Amounts used during the year | (146,628 | ) | - | |||||
| Carrying amount at end of year | 212,005 | 328,325 | ||||||
| Total | 530,699 | 748,705 |
Alterity Therapeutics
Notes to the financial statements
| Notes | 30 June 2024 | 30 June 2023 | 30 June 2024 | 30 June 2023 | ||||||||||||||
| Shares | Shares | $ | $ | |||||||||||||||
| Ordinary shares - fully paid | 5,245,115,318 | 2,439,897,618 | 223,152,985 | 213,971,323 |
| Details | Number of shares | Total $ | ||||||
| Balance at 1 July 2023 | 2,439,897,618 | 213,971,323 | ||||||
| Issue at $0.0035 (2023-11-29) | 362,462,762 | 1,268,620 | ||||||
| Issue at $0.0035 (2024-01-08) | 1,008,965,805 | 3,531,380 | ||||||
| Issue at $0.0035 (2024-02-02) | 571,428,556 | 2,000,000 | ||||||
| Issue at $0.0038 (2024-03-04) | 855,263,158 | 3,250,000 | ||||||
| Issue at $0.0070 (2024-04-22) | 7,097,419 | 49,682 | ||||||
| Security issuance costs | - | (918,020 | ) | |||||
| Balance at 30 June 2024 | 5,245,115,318 | 223,152,985 |
Ordinary shares have no par value
and the Group does not have a limited amount of authorised capital. On a show of hands every holder of ordinary shares present at a meeting
in person or by proxy, is entitled to one vote, and upon a poll, each share is entitled to one vote.
Movements in accumulated losses were as follows:
| 30 June 2024 | 30 June 2023 | |||||||
| Balance at the beginning of the year | 195,130,889 | 181,884,388 | ||||||
| Net loss for the period | (19,123,464 | ) | (13,806,515 | ) | ||||
| Reclassify expired options from reserves | - | (560,014 | ) | |||||
| Reclassify forfeited options from reserves | (93,222 | ) | - | |||||
| Balance at the end of the year | 214,161,131 | 195,130,889 |
| Share based payment reserve | Notes | 30 June 2024 | 30 June 2023 | 30 June 2024 | 30 June 2023 | |||||||||||||
| Options | Options | $ | $ | |||||||||||||||
| Options over fully paid ordinary shares | 5(c)(i) | 3,250,009,092 | 170,042,720 | 4,806,203 | 3,972,475 | |||||||||||||
| 3,250,009,092 | 170,042,720 | 4,806,203 | 3,972,475 |
Alterity Therapeutics
Notes to the financial statements