Full Press Release Details
INTERIM CONSOLIDATED FINANCIAL STATEMENTS
OF ALTERITY THERAPEUTICS LIMITED AND
SUBSIDIARIES, OR THE
GROUP (A DEVELOPMENT STAGE ENTERPRISE) AS OF DECEMBER 31, 2019
IN AUSTRALIAN DOLLARS
| Page | |
| CONSOLIDATED STATEMENT OF FINANCIAL POSITION | 1 |
| CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME | 2 |
| CONSOLIDATED STATEMENT OF CASH FLOWS | 3 |
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY | 4 |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS | 5 |
CONSOLIDATED STATEMENT OF FINANCIAL
(in Australian dollars)
| Notes | 31 December 2019 A$ | 30 June 2019 A$ | ||||||||
| ASSETS | ||||||||||
| Current assets | ||||||||||
| Cash and cash equivalents | 12,178,695 | 14,399,904 | ||||||||
| Trade and other receivables | 8(a) | 1,879,958 | 4,829,497 | |||||||
| Other current assets | 309,733 | 631,769 | ||||||||
| Total current assets | 14,368,386 | 19,861,170 | ||||||||
| Non-current assets | ||||||||||
| Property, plant and equipment | 117,334 | 48,748 | ||||||||
| Total non-current assets | 117,334 | 48,748 | ||||||||
| Total assets | 14,485,720 | 19,909,918 | ||||||||
| LIABILITIES | ||||||||||
| Current liabilities | ||||||||||
| Trade and other payables | 2,624,398 | 2,718,174 | ||||||||
| Provisions | 545,398 | 601,995 | ||||||||
| Other current liabilities | 70,344 | - | ||||||||
| Total current liabilities | 3,240,140 | 3,320,169 | ||||||||
| Non-current liabilities | ||||||||||
| Provisions | 37,126 | 34,976 | ||||||||
| Other non-current liabilities | 10,784 | - | ||||||||
| Total non-current liabilities | 47,910 | 34,976 | ||||||||
| Total liabilities | 3,288,050 | 3,355,145 | ||||||||
| Net assets | 11,197,670 | 16,554,773 | ||||||||
| EQUITY | ||||||||||
| Contributed equity | 9(a) | 156,922,052 | 156,632,636 | |||||||
| Reserves | 10(a) | 1,158,975 | 1,158,975 | |||||||
| Accumulated losses | (146,883,357 | ) | (141,236,838 | ) | ||||||
| Total equity | 11,197,670 | 16,554,773 |
The above Consolidated Statement of Financial
Position should be read in conjunction with the accompanying notes.
CONSOLIDATED STATEMENT OF PROFIT OR
LOSS AND OTHER COMPREHENSIVE INCOME
(in Australian dollars)
| Notes | 31 December 2019 A$ | 31 December 2018 A$ | ||||||||
| Income | ||||||||||
| Interest income | 6 | 14,133 | 66,364 | |||||||
| Other income | 6 | 1,855,172 | 2,426,518 | |||||||
| Expenses | ||||||||||
| Intellectual property expenses | (102,232 | ) | (82,667 | ) | ||||||
| General and administration expenses | 7 | (1,747,986 | ) | (2,031,326 | ) | |||||
| Research and development expenses | 7 | (5,747,034 | ) | (5,890,241 | ) | |||||
| Other operating expenses | (40,136 | ) | (28,162 | ) | ||||||
| Other gains/(losses) | 7 | 127,825 | 199,287 | |||||||
| Loss for the period | (5,640,258 | ) | (5,340,227 | ) | ||||||
| Loss before income tax | (5,640,258 | ) | (5,340,227 | ) | ||||||
| Income tax expense | - | - | ||||||||
| Other comprehensive loss | ||||||||||
| Other comprehensive income for the period, net of tax | - | - | ||||||||
| Total comprehensive loss for the period | (5,640,258 | ) | (5,340,227 | ) |
| Cents | Cents | |||||||||
| Loss per share for profit attributable to the ordinary equity holders of the company: | ||||||||||
| Basic loss per share | 5 | 0.65 | 0.99 | |||||||
| Diluted loss per share | 5 | 0.65 | 0.99 |
The above Consolidated Statement of Profit
or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes.
CONSOLIDATED STATEMENT OF CASH FLOWS
(in Australian dollars)
| Notes | 31 December 2019 A$ | 31 December 2018 A$ | ||||||||
| Cash flows from operating activities | ||||||||||
| Payments to suppliers and employees | (7,424,156 | ) | (7,290,291 | ) | ||||||
| R&D tax incentive refund | 4,824,880 | - | ||||||||
| Interest paid | (2,474 | ) | - | |||||||
| Interest received | 16,124 | 68,526 | ||||||||
| Net cash (outflow) from operating activities | 10 | (2,585,626 | ) | (7,221,765 | ) | |||||
| Cash flows from investing activities | ||||||||||
| Payments for property, plant and equipment | (7,499 | ) | (3,273 | ) | ||||||
| Net cash (outflow) from investing activities | (7,499 | ) | (3,273 | ) | ||||||
| Cash flows from financing activities | ||||||||||
| Proceeds from issues of shares and other equity securities | 372,506 | 166,086 | ||||||||
| Transaction costs relating to issue of equity | (83,090 | ) | (23,140 | ) | ||||||
| Principle elements of lease payments | (45,325 | ) | - | |||||||
| Net cash inflow from financing activities | 244,091 | 142,946 | ||||||||
| Net (decrease) in cash and cash equivalents | (2,349,034 | ) | (7,082,092 | ) | ||||||
| Cash and cash equivalents at the beginning of the financial year | 14,399,904 | 15,235,556 | ||||||||
| Effects of exchange rate changes on cash and cash equivalents | 127,825 | 229,797 | ||||||||
| Cash and cash equivalents at end of period | 12,178,695 | 8,383,261 |
The above Consolidated Statement of Cash
Flows should be read in conjunction with the accompanying notes.
CONSOLIDATED STATEMENT OF CHANGES IN
(in Australian dollars)
| Attributable to owners of Alterity Therapeutics Limited | ||||||||||||||||||
| Notes | Contributed equity A$ | Reserves A$ | Accumulated losses A$ | Total A$ | ||||||||||||||
| Balance at 1 July 2018 | 143,910,328 | 1,753,954 | (129,583,125 | ) | 16,081,157 | |||||||||||||
| Loss for the period | - | - | (5,340,227 | ) | (5,340,227 | ) | ||||||||||||
| Total comprehensive income for the period | - | - | (5,340,227 | ) | (5,340,227 | ) | ||||||||||||
| Transactions with owners in their capacity as owners: | ||||||||||||||||||
| Issue of ordinary shares | 9 | 166,086 | - | - | 166,086 | |||||||||||||
| Share-based payment expenses | - | 79,090 | - | 79,090 | ||||||||||||||
| Transaction costs | 9 | (63,140 | ) | - | - | (63,140 | ) | |||||||||||
| Expired options | - | (620,323 | ) | 620,323 | - | |||||||||||||
| 102,946 | (541,233 | ) | 620,323 | 182,036 | ||||||||||||||
| Balance at 31 December 2018 | 144,013,274 | 1,212,721 | (134,303,029 | ) | 10,922,966 | |||||||||||||
| Balance at 1 July 2019 | 156,632,636 | 1,158,975 | (141,236,838 | ) | 16,554,773 | |||||||||||||
| Initial adoption of AASB 16* | - | - | (6,261 | ) | (6,261 | ) | ||||||||||||
| Restated total equity at the beginning of the financial period | 156,632,636 | 1,158,975 | (141,243,099 | ) | 16,548,512 | |||||||||||||
| Loss for the period | - | - | (5,640,258 | ) | (5,640,258 | ) | ||||||||||||
| Total comprehensive income for the period | - | - | (5,640,258 | ) | (5,640,258 | ) | ||||||||||||
| Transactions with owners in their capacity as owners: | ||||||||||||||||||
| Issue of ordinary shares | 9 | 372,506 | - | - | 372,506 | |||||||||||||
| Transaction costs | 9 | (83,090 | ) | - | - | (83,090 | ) | |||||||||||
| 289,416 | - | - | 289,416 | |||||||||||||||
| Balance at 31 December 2019 | 156,922,052 | 1,158,975 | (146,883,357 | ) | 11,197,670 |
The above Consolidated Statement of Changes
in Equity should be read in conjunction with the accompanying notes.
(*) See note 14 for details regarding the
adjustment as a result of a change in accounting policy.
NOTES TO THE CONSOLIDATED FINANCIAL
(in Australian dollars)
Note 1: Basis of Preparation
This condensed consolidated interim report
for the half-year reporting period ending 31 December 2019 has been prepared in accordance with Accounting Standard AASB 134 Interim
Financial Reporting and the Corporations Act 2001. These financial statements also comply with International Financial Reporting
Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"), as applicable to interim
financial reporting.
This condensed consolidated interim financial
report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is
to be read in conjunction with the annual report on the Form 20-F for the year ended 30 June 2019 and any public announcements
made by Alterity Therapeutics Limited ("the "Group") during the interim reporting period in accordance with the
continuous disclosure requirements of the Corporations Act 2001.
The accounting policies adopted are consistent
with those of the previous financial year and corresponding interim reporting period except as discussed below.
Reclassification of comparatives
The Group has reclassified certain expenditure
items in prior year comparatives in order to be consistent with the current year classification and presentation.
(a) New and amended standards adopted
The Group has adopted all of the new or
amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board AASB' that are mandatory
for the current reporting period. The Group has changed its accounting policies and applied the modified retrospective method where
required as a result of adopting the new standards.
The impact of the adoption of these standards
and the new accounting policies are disclosed below and in note 14.
The Group is a development stage medical
biotechnology company and as such expects to be utilising cash until the results of its research activities have become marketable.
For the six months ended 31 December 2019, the Group incurred an operating loss of A$5,640,258 and an operating cash outflow of
A$2,585,626 compared with an operating loss of A$5,340,227 and an operating cash outflow of A$7,221,765 for the six months ended
31 December 2018. As at 31 December 2019 the net assets of the Group stood at A$11,197,670 compared with A$16,554,773 at June 30,
2019 and our cash position decreased to A$12,178,695 from A$14,399,904 at 30 June 2019.
The Directors intend to raise new equity
funding within the next six months to meet our forecasted cash requirements to enable progression of the Group's planned research
and development programs.
The continuing viability of the Group and
its ability to continue as a going concern and meet its debt and commitments as they fall due are dependent on this funding, together
with maintaining implemented cost containment and deferment strategies.
Management and the Directors believe the
Group will be successful in raising new equity funding and accordingly have prepared the financial report on a going concern basis,
notwithstanding there is a material uncertainty that may cast significant doubt on the Group's ability to continue as a going concern
and that it may be unable to realise its assets and liabilities in the normal course of business.
Note 1: Basis of Preparation (continued)
References to matters that may cast significant
doubt about the Group's ability to continue as a going concern also raise substantial doubt as contemplated by the Public
Company Accounting Oversight Board (PCAOB).
Note 2: Significant changes in the current
There have been no significant changes in
the state of affairs of the Group during the period.
Note 3: Segment information
Operating segments are reported in a manner
consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker, who
is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Chief Executive
Officer of the Company. For the current and previous reporting periods, the Group operated in one segment, being research and development
in the field of Parkinsonian movement disorders, Alzheimer's disease, Huntington disease and other neurodegenerative disorders.
The Group has not declared any dividends
in the period ended 31 December 2019 (2018 : nil)
Note 5: Loss per share
(a) Basic loss per share
| Six months ended December 31, | ||||||||
| 2019 (cents) | 2018 (cents) | |||||||
| From continuing operations attributable to the ordinary equity holders of the Group | 0.65 | 0.99 |
(b) Diluted loss per share
| Six months ended December 31, | ||||||||
| 2019 (cents) | 2018 (cents) | |||||||
| From continuing operations attributable to the ordinary equity holders of the Group | 0.65 | 0.99 |
(c) Reconciliation of earnings used in
calculating loss per share
| Six months ended December 31, | ||||||||
| 2019 | 2018 | |||||||
| Basic earnings per share | ||||||||
| Loss attributable to the ordinary equity holders of the Group used in calculating basic loss per share: | 5,640,258 | 5,340,227 | ||||||
| Diluted earnings per share | ||||||||
| Loss attributable to the ordinary equity holders of the Group used in calculating diluted loss per share | 5,640,258 | 5,340,227 | ||||||
| Adjustments | - | - | ||||||
| Loss attributable to the ordinary equity holders of the Group used in calculating diluted loss per share | 5,640,258 | 5,340,227 |
(d) Weighted average number of shares used
| Six months ended December 31, | ||||||||
| 2019 Number | 2018 Number | |||||||
| Weighted average number of ordinary shares used as the denominator in calculating basic loss per share | 868,327,981 | 536,789,698 |
Options that are considered to be potential
ordinary shares are excluded from the weighted average number of ordinary shares used in the calculation of basic loss per share.
Where dilutive, potential ordinary shares are included in the calculation of diluted loss per share. All the options on issue do
not have the effect to dilute the loss per share. Therefore, they have been excluded from the calculation of diluted loss per share.