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委员会 文件号 000-51504

 

 

 

联合 国

证券 交易委员会

华盛顿 特区20549

 

形式 20-F

 

登记 根据1934年《证券交易法》第12(b)或(g)条作出的声明

 

 

年度 根据1934年证券交易所法第13或15(d)条提交的报告

 

为 日终了的财政年度 6月30日, 2024

 

 

过渡 根据1934年证券交易所法第13或15(d)条提交的报告

 

为 从到的过渡期

 

 

壳 根据1934年证券交易法第13或15(d)条提交的公司报告

 

日期 需要该空壳公司报告的事件。. . . . . . . . . . . . . . . . . .

 

遗传 TECHNOLOGIES LIMITED

(确切的 章程中规定的注册人姓名以及注册人姓名的英文翻译)

 

澳大利亚

(管辖权 成立或组织)

 

60-66 Hanover Street, 菲茨罗伊,维多利亚,3065, 澳大利亚

(地址 主要行政办公室)

 

西蒙 莫里斯,

首席 执行官

 

60-66 Hanover Street, 菲茨罗伊,维多利亚,3065, 澳大利亚

电话: +61 3 8412 7000

(Name, 公司联系人的电话、电子邮件和/或传真号码和地址)

 

证券 根据该法案第12(b)条登记或即将登记:

 

标题 各班   交易 符号   名称 注册的每个交易所
不适用   不适用   不适用

 

证券 根据该法案第12(g)条登记或将登记:美国存托股份,每股代表30股普通股。

 

证券 根据该法案第15(d)条有报告义务的: 没有一

 

Number 截至年度报告所涵盖期间结束时发行人各类别资本或普通股的已发行股份的数量 次报告.有 132,217,246 截至2024年6月30日已发行普通股。

 

指示 如果注册人是《证券法》第405条规定的知名经验丰富的发行人,则勾选标记。

 

是的 不是

 

如果 本报告为年度报告或过渡报告,如果注册人无需根据第节提交报告,则用复选标记表示 1934年证券交易法第13或15(d)条。

 

是的 不是

 

注意 - 勾选上述方框不会免除任何根据证券第13或15(d)条提交报告的登记人的负担 1934年《交易法》免除其在这些条款下的义务。

 

指示 勾选注册人(1)是否已提交证券交易所第13或15(d)条要求提交的所有报告 过去12个月内的1934年法案(或要求登记人提交此类报告的较短期限内),和(2) 在过去90天内一直遵守此类提交要求。

 

*☐不是

 

指示 检查注册人是否已以电子方式提交了根据规则需要提交的所有交互数据文件 S-t法规第405条(本章第232.405条)在过去12个月内(或注册人 被要求提交此类文件)。

 

*☐不是

 

指示 通过勾选注册人是大型加速归档者、加速归档者、非加速归档者还是新兴增长者 公司请参阅“大型加速文件夹”、“加速文件夹”和“新兴成长型公司”的定义 在《交易法》第120亿.2条中。(勾选一项):

 

  大 加速文件收件箱   加速 文件收件箱   非加速 filer
          新兴 成长型公司

 

如果 一家根据美国公认会计原则编制财务报表的新兴成长型公司,通过勾选标记表明注册人是否 已选择不使用延长的过渡期来遵守任何新的或修订的财务会计准则 * 根据《交易法》第13(a)条。☐

 

† “新的或修订的财务会计准则”一词是指财务会计准则发布的任何更新 2012年4月5日之后,董事会将其会计准则法典化。

 

指示 检查注册人是否已提交其管理层对其有效性评估的报告和证明 根据《萨班斯-奥克斯利法案》(15 USC)第404(b)条对其财务报告的内部控制7262(b))由注册人 编制或发布审计报告的公共会计师事务所。”

 

*否

 

如果 证券是根据该法案第12(b)条登记的,通过复选标记表明登记人的财务报表是否 文件中包含的内容反映了对之前发布的财务报表错误的更正。

 

*否

 

指示 勾选这些错误更正是否是需要对基于激励的薪酬进行恢复分析的重述 根据§240.10D-1(b),注册人的任何执行官员在相关恢复期内收到。

 

是的否

 

表明 通过勾选标记,注册人使用了哪种会计基础来编制本备案文件中包含的财务报表:

 

美国 GAAP  

国际财务报告准则 颁布的

国际 会计标准委员会收件箱

  其他☐

 

如果 针对上一个问题已勾选“其他”,通过勾选标记指明哪个财务报表项目 注册人已选择遵循。

 

项目 17项目18

 

如果 这是一份年度报告,通过勾选标记表明注册人是否为空壳公司(定义见交易所规则120亿.2 法案)。

 

*否

 

(适用 仅针对过去五年内参与银行破产程序的发行人)

 

指示 勾选注册人是否已提交证券第12、13或15(d)条要求提交的所有文件和报告 根据法院确认的计划分配证券后的1934年交易法。是

 

 

 

 
 

 

表 内容

 

项目 1. 董事、高级管理人员和顾问的身份 1
项目 2. 优惠统计数据和预期时间表 1
项目 3. 关键信息 1
项目 3.A 已保留 1
项目 3.B 资本化和负债化 1
项目 3.C 提供和使用收益的原因 1
项目 3.D 风险因素 1
项目 4. 关于公司的信息 21
项目 4.A 公司的历史与发展 21
项目 4.B 业务概述 23
项目 4.C 组织结构 32
项目 4.D 物业、厂房及设备 32
项目 4A. 未解决的员工意见 33
项目 5. 经营与财务回顾与展望 33
项目 5.A 经营业绩 33
项目 5.B 流动性与资本资源 37
项目 5.C 研发、专利和许可证等。 38
项目 5.D 趋势信息 39
项目 5.E 关键会计估计 39
项目 6. 董事、高级管理人员和员工 39
项目 6.A 董事和高级管理人员 39
项目 6.B 补偿 41
项目 6.C 董事会惯例 53
项目 6.D 员工 55
项目 6.E 股份所有权 55
第6.F项 披露登记人追讨错误判给的补偿的行动 55
项目 7. 大股东和关联方交易 56
项目 7.A 大股东 56
项目 7.B 关联方交易 56
项目 7.C 专家和律师的利益 56
项目 8. 财务信息 56
项目 8.A 合并报表和其他财务信息 56
项目 8.B 重大变化 57
项目 9. 报价和挂牌 57
项目 9.A 优惠和上市详情 57
项目 9.B 配送计划 57
项目 9.C 市场 57
项目 9.D 出售股东 57
项目 9.E 稀释 57
项目 9.F 发行债券的开支 57
项目 10. 附加信息 57
项目 10.A 股本 57
项目 10.B 我们的宪法 57
项目 10.C 材料合同 59
项目 10.D 外汇管制 60
项目 10.E 税务 60
项目 10.F 股息和支付代理人 66

 

i
 

 

项目 10.G 专家发言 66
项目 10.H 展出的文件 66
项目 10.I 子公司信息 66
项目 10.J 给证券持有人的年度报告 66
项目 11. 关于市场风险的定量和定性披露 66
项目 12. 除股权证券外的其他证券说明 67
项目 12.A 债务证券 67
项目 12.B 认股权证和权利 67
项目 12.C 其他证券 67
项目 12.D 美国存托股份 67
项目 13. 违约、拖欠股息和拖欠股息 68
项目 14. 对担保持有人权利和收益使用的实质性修改 68
项目 15. 控制和程序 68
项目 16 已保留 69
项目 16.A 审计委员会财务专家 69
项目 16.B 《道德守则》 69
项目 16.C 首席会计师费用及服务 69
项目 16.D 对审计委员会的上市标准的豁免 70
项目 16.E 发行人及关联购买人购买股权证券 70
项目 16.F 更改注册人的认证会计师 70
项目 16.G 公司治理 70
项目 16.H 煤矿安全信息披露 70
项目 16.我 关于妨碍检查的外国司法管辖区的披露 70
项目 16.J 内幕交易政策 70
项目 16.K 网络安全 70
项目 17. 财务报表 70
项目 18. 财务报表 70
项目 19. 陈列品 71

 

ii
 

 

引言

 

在 本年度报告中,“公司”、“基因技术”、“GTG”、“集团”、“我们” “我们”和“我们的”是指基因技术有限公司及其合并子公司。

 

我们 合并财务报表载于本年度报告第F-1页开始(参阅第18项“财务报表”)。

 

引用 “美国存托股票”指的是第12.D项“美国存托股票”中描述的我们的存托股票和对“普通股”的引用 股份”指第10项中描述的我们的普通股。

 

我们 财年于6月30日结束,本年度报告中提及的任何特定财年均指截至日期的十二个月期间 当年的6月30日。

 

前瞻性 报表

 

这 年度报告包含涉及风险和不确定性的前瞻性陈述。我们使用“预期”等词语, “相信”、“计划”、“期望”、“未来”、“打算”和类似表达 以识别此类前瞻性陈述。本年度报告还包含归因于某些第三方的前瞻性陈述 各方就其对基因技术以及相关市场和支出的增长进行了估计。您不应 过度依赖这些前瞻性陈述,这些陈述仅适用于本年度报告之日。我们的实际结果可能会有所不同 由于多种原因,包括下文所述我们面临的风险,这些前瞻性陈述中预期的内容与以下 在本年度报告的标题“风险因素”和其他地方。

 

虽然 我们相信,此类前瞻性陈述中反映的预期目前是合理的,但我们不能保证 事实证明,这样的期望是正确的。鉴于这些不确定性,请读者不要过度依赖这种前瞻性 报表可能导致实际结果与我们预期存在重大差异的重要因素包含在警告中 本年度报告中的陈述,包括但不限于与本年度报告中包含的前瞻性陈述一起 报告,特别是在第3.D项“风险因素”下。

 

所有 随后归属于我们的书面和口头前瞻性陈述通过引用这些明确限定其完整性 警告性声明。

 

澳大利亚 披露规定

 

我们 除了我们的ADS上市外,普通股主要在澳大利亚证券交易所(“ASX”)上市 纳斯达克全球精选市场。作为ASX上市的一部分,我们必须遵守既定的各种披露要求 根据2001年澳大利亚公司法和ASX上市规则。在副标题“澳大利亚人”下提供的信息 披露要求”旨在遵守ASX上市和《2001年公司法》披露要求,并非如此 以满足本年度报告20-F表格要求的信息。

 

执法 负债和程序送达

 

我们 根据西澳大利亚州的法律在澳大利亚联邦注册成立。我们所有的董事和高管,以及 本年度报告中点名的任何专家都居住在美国以外。我们的几乎所有资产、董事和高管 官员的资产和这样的专家的资产都位于美国以外。因此,投资者可能无法 影响在美国境内向我们或我们的董事、高管或该等专家送达法律程序文件,或对他们强制执行 或在美国法院,根据美国联邦证券法的民事责任条款在美国法院获得的判决 此外,我们的澳大利亚律师告诉我们,澳大利亚法院是否会强制执行 美国、我们的董事、高管和专家,根据民事责任条款在美国获得的判决 美国联邦证券法的一部分,或将在澳大利亚法院根据联邦 美国证券法

 

iii
 

 

部分 我

 

项目 1.董事、高级管理人员和顾问的身份

 

不 适用

 

项目 2.报价统计数据和预计时间表

 

不 适用因

 

项目 3.密钥信息

 

项目 3.A保留

 

项目 3.b资本化和负债

 

不 适用因

 

项目 3.C提供和使用收益的原因

 

不 适用因

 

项目 3.D风险因素

 

之前 您购买了我们的ADS,您应该意识到存在风险,包括以下描述的风险。你应该仔细考虑这些 在您决定购买我们的ADS之前,风险因素以及本年度报告其他地方包含的所有其他信息。

 

风险 因素总结

 

风险 与我们的业务有关的

 

一个 与我们的产品和候选产品在国际上商业化相关的各种风险可能会对 我们的生意。
我们的 该公司有亏损的历史。
我们 可能无法成功地从我们现有的产品组合过渡到我们的下一代风险评估测试,并且我们的 新开发的营销和分销这类产品的方法可能不会产生收入。
我们的 产品可能永远不会获得市场的广泛认可。
我们 由于收购easyDNA和AffinityDNA而面临更多风险,可能无法成功整合我们的业务 并实现这些收购的预期协同效应和相关利益,或在预期时间框架内实现这一点。
失败 证明我们产品的临床实用性可能会对我们的财务状况和结果产生实质性的不利影响 行动。
如果 我们的竞争对手开发出优越的产品,我们的运营和财务状况可能会受到影响。
我们 与我们有限控制的外部各方有重要关系。
我们 可能要承担责任,我们的保险可能不足以支付损害赔偿。
安防 违规、隐私问题、数据丢失和其他事件可能会危及与我们业务相关的敏感或个人信息 或阻止我们访问关键信息并使我们承担责任,这可能会对我们的业务和声誉造成不利影响。
我们 在我们的业务中使用潜在的危险材料、化学品和患者样本,以及任何与不当处理有关的纠纷, 储存或处置这些材料可能既耗时又昂贵。
我们的 工业受制于快速变化的技术以及与基因和基因相关的新的和不断增加的科学数据 变异及其在疾病中的作用。
我们 依靠我们的学术和企业合作伙伴为我们的研究、开发和商业化所做的合作努力 产品。我们的合作伙伴违反其义务或终止关系,可能会剥夺我们宝贵的资源。 并且需要额外的时间和金钱投入。
如果 我们唯一的实验室设施变得无法操作,我们可能无法进行测试,我们的业务将受到损害。
这个 失去我们高级管理团队的关键成员,或者我们无法吸引和留住高技能的科学家、临床医生和 销售人员可能会对我们的业务产生不利影响。

 

1
 

 

变化 按照食品和药物管理局(FDA)监管我们测试的方式,可能会导致提供延迟或额外费用 我们的测试和我们未来可能开发的测试。
我们的 被吊销或暂时吊销执照,或被处以罚款或处罚,或未来发生以下情况的变化,可能会损害业务, 或改变我们对临床实验室改进修正案(CLIA)或国家实验室许可法的解释 都是受制于。
失败 建立并遵守适当的质量标准,以确保在执行过程中遵守最高水平的质量 我们的测试服务以及我们产品的设计、制造和营销可能会对我们的运营结果产生不利影响 并对我们的声誉造成不利影响。
我们 可能受到违反《反海外腐败法》(FCPA)和其他全球反贿赂法律的不利影响。
如果 我们未能维持有效的财务报告内部控制制度,我们可能无法准确地报告我们的 财务结果或防止欺诈。
失败 遵守健康信息隐私法,包括1996年《健康保险可携带性和责任法案》(HIPAA)或 适用的其他美国联邦或州健康信息隐私和安全法律可能会对我们的业务产生负面影响。
如果 我们或我们的合作伙伴未能在适用的范围内遵守复杂的联邦、州、当地和外国法律和法规 对于我们的业务,我们可能会遭受严重的后果,这可能会对我们的经营业绩和财务产生实质性的不利影响 条件。
一个 不遵守适用于我们业务的任何联邦或州法律,特别是相关法律 对于消除医疗欺诈,可能会对我们的业务产生不利影响。
我们 面临与货币汇率波动相关的风险,这可能对我们的经营业绩产生不利影响。
政府 对基因研究或检测的监管可能会对我们的服务需求产生不利影响,并损害我们的业务和运营。
失败 在我们的信息技术系统中,可能会显著增加测试周转时间或对计费流程的影响,或者 否则就会扰乱我们的行动。
任何 我们网站或我们的计算机或物流系统的服务严重中断,无论是由于我们的信息故障 技术系统或第三方供应商的系统可能会损害我们的声誉,并可能导致客户流失。
违规事件 网络或信息技术、自然灾害或恐怖袭击可能会对我们的业务产生不利影响。
道德规范 而围绕基因信息使用的其他担忧可能会减少对我们服务的需求。
风险 与我们的知识产权有关。
我们 严重依赖专利和专有技术,可能无法保护我们的业务。
我们 在某些司法管辖区可能会遇到保护我们的知识产权的困难,这可能会削弱我们的 在这些司法管辖区的知识产权。
我们的 运行可能受到极端天气条件的影响或其他适时运输中断的影响 标本的数量。
我们的 消费者发起测试(CIT)平台将使我们面临各种风险。
停产 或召回现有测试产品或我们的客户使用新技术执行自己的测试可能会产生不利影响 我们的生意。
的 多基因风险评分(PPA)测试可能无法获得必要的监管许可,因此我们可能无法产生任何收入。
如果 获得和维持FDA批准需要进行PPA测试,它将遵守持续的政府法规和其他法规 外国法规。
下降 一般经济或商业状况可能会对我们的业务产生负面影响。

 

风险 与我们的证券相关

 

我们 ADS可能会从纳斯达克资本市场退市。
我们 股价波动较大,可能会根据我们无法控制的事件和一般行业状况而大幅波动。作为 因此,您的投资价值可能会大幅下降。
的 事实上,我们预计不支付现金股息可能会导致我们的股票价格下跌。
你 可能难以送达法律程序并执行针对我们和我们管理层的判决。

 

2
 

 

因为 我们不需要向您提供与美国证券发行商相同的信息,您可能不会 提供相同的保护或信息,如果您投资了一家总部设在美国的上市公司。
AS 作为一家外国私人发行人,我们被允许在与以下公司治理事项有关的母国做法 与纳斯达克公司治理上市标准有很大差异,这些做法可能会减少对股东的保护 如果我们完全遵守纳斯达克公司治理上市标准,他们将享受到的好处更多。
AS 作为一家美国上市公司,我们必须遵守额外的合规要求,包括第404条, 如果我们不能保持有效的内部控制系统,我们可能无法准确地报告我们的财务结果 或防止欺诈。
我们 作为一家拥有在美国上市的美国存托凭证的公司运营,将会产生巨大的成本,而我们的 管理层将被要求投入大量时间来实施新的合规举措。
这个 本公司普通股与美国存托凭证同时上市可能会对美国存托凭证的流动资金及价值产生负面影响。
澳籍 收购法可能会阻止对我们提出的收购要约,或者可能会阻止在我们的 普通股或美国存托凭证。
我们的 适用于我们的宪法和澳大利亚法律法规可能会对我们采取以下行动的能力产生不利影响 对我们的股东有利。
一个 我们的美国存托凭证缺乏大量流动性,可能会对您转售我们的证券的能力产生负面影响。
在……里面 在某些情况下,美国存托凭证持有人相对于普通股持有人的权利可能有限。

 

风险 一些涉及税收

 

我们 可能被归类为被动外国投资公司,这可能会导致美国联邦所得税的不利后果 美国持有者。
如果 美国人被视为拥有至少10%的普通股,该持有人可能会受到美国联邦不利的影响 所得税后果。
变化 税法可能会对我们的公司产生重大不利影响,并减少我们股东的净回报。
税 当局可能不同意我们关于某些税收立场的立场和结论,从而导致意外成本、税收 或未实现预期利益。

 

风险 与我们的业务有关的

 

一 与我们的产品和候选产品在国际上商业化相关的各种风险可能会产生重大不利影响 我们的业务

 

我们, 或我们的许可合作伙伴,可能会在多个司法管辖区寻求对我们的产品或候选产品的监管批准,因此, 我们预计我们的产品和候选产品将面临与在国外运营相关的额外风险 如果我们获得必要的批准,包括:

 

不同 国外的监管要求;
的 所谓平行进口的潜力,即当地卖家面临当地价格高或更高的情况,选择从 国外市场(价格较低或较低),而不是在当地购买;
意外 关税、贸易壁垒、价格和汇率管制以及其他监管要求的变化;
经济 疲软,包括通货膨胀,或政治不稳定,特别是外国经济体和市场;
合规 针对居住或旅行在国外的员工制定税收、就业、移民和劳动法;
外国 税收,包括预扣税;
外国 货币波动,这可能导致运营费用增加和收入减少,以及其他义务 在另一个国家做生意;
困难 配备和管理海外业务;
劳动力 劳工骚乱比澳大利亚或美国更常见的国家的不确定性;
挑战 执行我们的合同和知识产权,特别是在那些不尊重和保护的外国 与澳大利亚或美国相同程度的知识产权;
生产 任何影响国外原材料供应或制造能力的事件导致的短缺;以及
业务 地缘政治行动(包括战争和恐怖主义)造成的中断。

 

这些 以及与我们或我们的许可合作伙伴的国际运营相关的其他风险可能会对我们的能力产生重大不利影响 实现或维持盈利运营。

 

3
 

 

我们 公司有亏损的历史。

 

我们 自截至2011年6月30日的年度以来,每年均出现营业亏损。截至2024年6月30日,公司累计亏损 目前尚不能确定公司的亏损金额为166,376,076澳元,未来亏损的程度以及公司能否在未来几年盈利。 该公司目前没有产生足够的收入来支付其运营费用。2024年7月26日,公司宣布 该公司正在重组其运营模式,以显著减少持续的运营亏损和现金外流。作为该计划的一部分 重组公司将过渡到轻资本运营模式,在这种模式下,研发和新产品等活动 开发、知识产权创建、实验室测试和推出以前已有的预测性基因检测产品 在内部,将以不同的方式停止、外包和/或通过合作进行。展望未来,公司的重点将是 凭借其easyDNA和AffinityDNA业务不断增长的收入,以及通过战略合作伙伴关系将GeneType在美国商业化。 如果我们无法产生足够的收入并最终实现盈利,或者如果我们无法通过筹集资金来弥补持续的亏损 需要额外融资时,我们的股东可能会失去全部或部分投资。

 

我们 最近收购的EasyDNA可能无法成功扩大收入,从而提高运营盈利能力 和AffinityDNA业务或实现产品组合向我们下一代geneType风险评估的重大商业销售 试验.

 

我们 相信我们未来的成功取决于我们从现有产品中增加收入的能力,并成功地 介绍和销售我们新开发的产品,包括我们于11月推出的创新遗传性乳腺癌和卵巢癌检测 2023年,以及2024年3月启动的遗传型综合风险评估测试。尽管我们相信我们现在有了世界 这类产品将成为使预测性基因检测成为主流医疗保健活动的重要组成部分,我们可能 不能成功地从我们现有的产品过渡到这些产品,并且不能保证对这些产品的需求 将开发新产品。此外,我们计划通过全球分销网络向医疗保健提供者介绍我们的新产品 而不是通过我们自己的销售团队。尽管我们相信我们正在建立有价值的销售和分销关系 与经验丰富的经销公司合作,不能保证我们能按条件达成经销安排。 令我们满意,我们的营销战略将取得成功,并带来可观的收入。

 

我们 产品可能永远不会获得明显的市场接受度。

 

我们 可能会花费大量资金和管理精力来开发和营销我们的预测基因检测产品,而无需 保证我们将成功销售我们的产品或服务。我们有能力成功达成分销安排 销售我们的分子风险评估和预测性基因检测产品和服务将在很大程度上取决于这样的看法: 我们的产品和服务可以降低患者风险并改善医疗结果,并且我们的产品和服务优于现有的产品和服务 试验.如果我们花钱却没有任何回报,我们的业务也可能受到不利影响。

 

我们 因收购EasyDNA和AffinityDNA而面临额外风险。我们可能无法成功整合我们的业务 并实现这些收购的预期协同效应和相关利益,或者在我们预期的时间范围内实现这一目标。包括:

 

困难 在整合和管理easyDNA和AffinityDNA的组合运营中,实现预期的经济、运营、 和其他收益,这可能会导致大量成本和延误或其他运营、技术或财务 问题;
中断 EasyDNA和AffinityDNA业务及其与服务提供商和其他第三方的运营和关系;
损失 EasyDNA和AffinityDNA的关键员工以及与将新员工融入我们的文化相关的其他挑战 如果整合不成功,会对声誉造成损害;
分流 管理时间和重点从运营我们的业务到解决easyDNA和AffinityDNA运营集成的挑战;
分流 从我们现有产品、服务和运营的持续开发中获得大量资源;
失稳 成功实现我们预定的业务战略;
增加 我们预计在未来期间将发生的经营亏损;
监管部门 整合或管理合并的业务或扩展到其他行业或医疗保健行业的部分的复杂性;
监管部门 侧重于企业医疗实践的发展或执法趋势;
更大 与easyDNA和AffinityDNA业务和业务整合相关的成本高于预期;
增加 与增加受监管业务相关的合规和相关成本;

 

4
 

 

责任 EasyDNA和AffinityDNA的负债,包括未向我们披露或超出我们估计的负债,以及 由于未能维持有效的数据保护和隐私实践控制而产生的责任,不受限制 并遵守适用法规;以及
潜在 与EasyDNA和AffinityDNA收购相关记录的无形资产的会计费用,例如信誉, 商标、客户关系或知识产权随后被确定受损并减记价值。

 

失败 为了证明我们的geneType产品的临床实用性,可能会对我们的财务状况和结果产生重大不利影响 的运营。

 

的 公司认为,其当前的GeneType风险评估测试,以及针对其他疾病适应症的新测试管道 正在开发的国家有能力改变整个人口的健康结果。然而,公司证明这一点至关重要 其新产品的大规模临床应用。临床实用性是指测试对临床实践的实用性。如果公司 无法证明临床实用性,或者如果数据被认为不足以验证实用性,那么需求可能不足 对于公司的产品。

 

如果 我们的竞争对手开发出优质产品,我们的运营和财务状况可能会受到影响。

 

我们 目前面临来自生物技术和诊断公司、学术和研究机构以及政府的竞争加剧 或其他正在寻求与我们的分子风险评估基本相似的产品和服务的公共资助机构 测试产品,或以其他方式满足我们客户和潜在客户的需求。

 

我们 预测基因检测和评估市场的竞争对手包括位于澳大利亚的私营和公共部门企业, 美国和其他地方。许多与我们竞争的组织规模要大得多,并且更容易获得所需的资源。在 特别是,他们在金融、研发、制造、营销、销售、分销等领域拥有更多经验, 技术和监管问题比我们更重要。此外,许多更大的当前和潜在竞争对手已经建立 名称/品牌知名度和更广泛的合作关系。

 

我们 在分子风险评估和预测测试领域的竞争地位尤其基于我们以下方面的能力:

 

继续 通过临床试验获得科学验证的过程,加强和维护科学可信度 得到医学期刊同行评审出版物的支持;
创建 保持科学先进的技术,提供专有产品和服务;
继续 加强和改进有关我们的癌症风险评估测试向患者提供的重要性和价值的信息 和医生;
多样化 我们针对疾病类型提供的产品;
获得 并为我们的产品和服务维护专利或其他保护;
获得 并及时保持所需的政府批准和其他认证;以及
成功 营销我们的产品和服务。

 

如果 我们未能成功实现这些目标,我们的业务可能会受到不利影响。同样,我们的竞争对手可能会成功开发 比我们正在开发的或将提供我们的技术、产品或服务更有效的技术、产品或服务 服务过时、没有竞争力或不经济。

 

我们 与我们控制有限的外部方有重要关系。

 

我们 与学术顾问、其他机构的研究合作者和其他未受雇于 我们。因此,我们对他们的活动的控制有限,只能期望他们有限的时间专门用于我们的 活动。这些人可能与其他实体有咨询、就业或咨询安排,这些实体可能与其他实体发生冲突或竞争 履行他们对我们的义务。我们的顾问通常会签署协议,对我们的专有信息进行保密 以及研究结果。然而,我们可能无法对我们的技术保密,传播这些技术可能会 损害了我们的竞争地位和运营结果。就我们的科学顾问、合作者或顾问而言 对于可能适用于我们建议的产品的发明或工艺,可能会产生关于专有权所有权的争议 这样的信息,我们可能不会成功,有任何争议的结果。

 

5
 

 

我们 可能承担责任,我们的保险可能不足以赔偿损失。

 

我们的 商业使我们面临潜在的责任风险,这些风险是分子风险的测试、制造、营销和销售所固有的。 评估和预测性测试。使用我们的产品和候选产品,无论是用于临床试验还是商业销售,都可以 使我们面临专业和产品责任索赔以及可能的负面宣传。我们可能会因不正确的原因而提出索赔 使用我们的产品进行的遗传变异分析或其他筛查测试的结果。此类索赔的诉讼可能代价高昂。 此外,如果法院要求我们向原告支付损害赔偿金,这种损害赔偿的金额可能是巨大的和严重的损害。 我们的财务状况。虽然我们在广泛的责任和专业形式下有公共和产品责任保险 赔偿政策,我们的承保水平或范围可能不足以完全覆盖任何潜在的责任索赔。此外, 我们可能无法在未来以可接受的成本获得额外的责任保险。一项成功的索赔或一系列索赔 超出我们的保险范围,以及专业和/或产品责任诉讼对声誉的影响 我们的技术和产品的适销性,加上关键人员注意力的转移,可能会产生负面影响 我们的生意。

 

安全 违规行为、隐私问题、数据丢失和其他事件可能会损害与我们业务相关的敏感或个人信息 或阻止我们访问关键信息并使我们承担责任,这可能会对我们的业务和声誉产生不利影响。

 

在……里面 在我们的正常业务过程中,我们收集和存储敏感数据,包括受保护的健康信息(PHI)、个人身份识别 拥有或控制的信息、遗传信息、信用卡信息、知识产权和专有商业信息 由我们自己或我们的客户、付款人和其他方支付。我们使用以下组合来管理和维护我们的应用程序和数据 现场系统、托管数据中心系统和基于云的系统。我们还通过以下方式传递PHI和其他敏感患者数据 我们的各种客户工具和平台。除了存储和传输受多项法律保护的敏感数据外, 这些应用程序和数据包含各种业务关键信息,包括研究和开发信息、 商业信息,以及商业和金融信息。我们面临着与保护这些关键信息相关的许多风险, 包括失去访问权限的风险、不适当的披露、不适当的修改以及我们无法充分监控的风险 并修改我们对关键信息的控制。我们的数据和系统可能出现的任何技术问题, 包括由第三方提供商托管的服务,可能会导致我们的业务和运营中断或暴露在 安全漏洞。这些类型的问题可能是由各种因素造成的,包括基础设施的故意更改、 或意外的人为操作或疏忽、软件错误、恶意软件、病毒、安全攻击、欺诈、客户使用量激增和拒绝 服务问题。此外,最近勒索软件和网络安全攻击大幅增加,与 俄罗斯和乌克兰之间持续的冲突,这可能会对运行我们关键业务所需的内部系统造成实质性损害 运营和创收服务。

 

的 这些关键信息的安全处理、存储、维护和传输对于我们的运营和业务战略至关重要, 我们投入了大量资源来保护此类信息。虽然我们采取我们认为合理和适当的 采取措施,包括正式的专门企业安全计划,以保护敏感信息免受各种损害(包括 未经授权的访问、披露或修改或缺乏可用性),我们的信息技术和基础设施可能容易受到攻击 黑客或病毒的攻击或因员工错误、渎职或其他中断而被破坏。例如,我们一直受到 过去的网络钓鱼事件,并且我们未来可能会遇到其他事件。任何此类违规或中断都可能损害 我们的网络及其存储在其中的信息可能会被未经授权的方访问、更改、公开披露、丢失或被盗。

 

未经授权 访问、丢失或传播也可能扰乱我们的运营(包括我们进行分析、提供测试结果的能力, 向付款人或患者收取账单,处理索赔和上诉,提供客户帮助,开展研发活动,收集, 处理和准备公司财务信息,提供有关我们的测试以及其他患者和医生教育的信息, 通过我们的网站进行外展工作,并管理我们业务的行政方面)并损害我们的声誉,其中任何一种 可能会对我们的业务产生不利影响。

 

在 除了数据安全风险外,我们还面临隐私风险。我们是否应该真正侵犯或被视为侵犯任何隐私 我们向患者或消费者做出的承诺,可能会受到受影响个人或感兴趣的隐私监管机构的投诉, 例如FTC、州总检察长、欧盟成员国数据保护机构或另一个国际的数据保护机构 辖区鉴于我们收集的数据的敏感性,这种风险更加严重。

 

任何 导致明显侵犯隐私的安全妥协也可能导致法律索赔或诉讼;根据联邦、 监管隐私、安全或侵犯个人信息的国家、外国或多国法律,例如但不限于 对1996年的健康保险可携带性和责任法案,或HIPAA,经健康信息技术促进经济修订 和2009年临床健康法案,或HITECH,国家数据安全和数据泄露通知法,欧盟总 《数据保护条例》(GDPR)和2018年英国《数据保护法》;以及相关监管处罚。对失败的处罚 遵守HIPAA或HITECH的要求差异很大,并取决于HIPAA监管的知识和过错 实体,可包括对违反《国际公共部门会计准则》规定的每一日历年最高150美元的民事罚款(万)。 违反HIPAA明知地获取或披露个人可识别健康信息的人可能面临刑事处罚 最高50,000美元和最高一年监禁。如果不法行为涉及虚假借口,则加重刑事处罚 或为了商业利益、个人利益或恶意伤害而出售、转移或使用可识别的健康信息的意图。罚则 对于联邦贸易委员会法案或国家不公平和欺骗性行为和做法,或UDAP,法规还可以 差异很大。

 

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那里 在制定数据保护法规方面,世界各地都进行了前所未有的活动。因此,解释和 消费者、健康相关和数据保护法在美国、欧洲和其他地方的适用往往是不确定的、相互矛盾的 而且还在不断变化。GDPR于2018年5月25日起施行。GDPR适用于在欧盟境内和域外设立的任何实体 欧盟以外的任何实体,向欧盟境内的个人提供商品或服务,或监控其行为。这个 GDPR对个人数据的控制者和处理者提出了严格的要求,包括加强对“特殊类别”的保护 个人数据,包括敏感信息,如数据对象的健康和基因信息。GDPR还授予 个人与其个人资料有关的各种权利,包括查阅、更正、反对某些处理的权利 和删除。GDPR为个人提供了一项明确的权利,如果个人相信他或她的权利,可以寻求法律补救 都被侵犯了。未遵守GDPR或成员国相关国家数据保护法的要求 可能偏离GDPR或比GDPR更具限制性的欧盟规则,可能会导致欧盟监管机构开出巨额行政罚款。 违反GDPR的最高罚款上限为2,000万欧元或组织全球年收入的4%,以两者中的任何一种为准 是更伟大的。

 

另外, GDPR的实施已导致其他司法管辖区修改或提出立法,以修改其现有的数据隐私和 网络安全法类似于GDPR的要求。例如,2018年6月28日,加利福尼亚州通过了加州消费者隐私 2018年法案,或CCPA。CCPA规定了满足一个或多个CCPA适用性门槛的某些营利性企业如何收集资金, 使用和披露居住在加利福尼亚州的消费者的个人信息。在其他方面,CCPA授予加利福尼亚州 消费者有权收到通知,说明企业将收集哪些类别的个人信息,企业如何 将使用和共享个人信息,并将接收个人信息的第三方。CCPA还授予权利 获取、删除或转移个人信息;以及在行使权利后从企业获得同等服务和定价的权利 CCPA授予的消费者权利。此外,CCPA允许加州消费者有权选择不出售 他们的个人信息,《反海外腐败法》广义地定义为向第三方披露个人信息作为交换 为了金钱或其他有价值的代价。CCPA还要求企业实施合理的安全程序,以保障 防止未经授权访问、使用或泄露个人信息。CCPA不适用于某些当事人收取的公共卫生费用 HIPAA,或根据HIPAA定义的去身份数据。CCPA规定了对违规行为的民事处罚,以及私人 对因企业未能实施和维护合理的数据安全而导致的某些数据泄露的诉讼权 预计会增加数据泄露诉讼的程序。2023年1月1日,加州隐私权法案(CPRA)定于 生效,并将对CCPA进行实质性修改。CPRA将修改CCPA,为加州居民提供 能够限制他们的敏感信息的使用,规定对涉及加州居民的CPRA违规行为进行处罚 16岁以下,并成立一个新的加州隐私保护局来实施和执行法律。

 

弗吉尼亚州, 科罗拉多州和犹他州最近颁布了类似的隐私法案,美国其他数十个州目前正在考虑 类似的消费者数据隐私法,如果颁布,可能会影响我们的运营。一些观察家指出,CCPA可能标志着 美国开始出现更严格的隐私立法趋势,这可能会增加我们的潜在责任 并对我们的业务、运营业绩和财务状况产生不利影响。

 

它 GDPR、CCPA和其他新兴的美国和国际数据保护法是否可能被解释和适用于 一种与我们的做法不一致的方式。如果是这样的话,这可能会导致政府施加罚款或命令,要求我们改变 我们的做法,这可能会对我们的业务产生不利影响。此外,这些隐私法律和法规可能因国家/地区而异 国家和州之间,我们在这些法律和法规下的义务根据我们在特定地区的活动的性质而有所不同 司法管辖权,例如我们是否从当地司法管辖区的个人那里收集样本,是否在当地司法管辖区进行检测, 或处理有关当地司法管辖区员工或其他个人的个人信息。遵守这些不同的法律 法规可能会导致我们产生巨额成本,或者要求我们改变我们的业务做法和合规程序 对我们的生意不利的态度。我们不能保证我们正在或将继续遵守各种隐私和数据 在我们开展业务的所有司法管辖区的安全要求。未能遵守隐私和数据安全要求 可能导致各种后果,包括民事或刑事处罚、诉讼或损害我们的声誉,其中任何一项 可能会对我们的业务产生实质性的不利影响。

 

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我们 在我们的业务中使用潜在危险的材料、化学品和患者样本以及与不当处理、储存有关的任何争议 或者这些材料的处理可能耗时且成本高昂。

 

我们的 研发、生产和服务活动涉及对危险实验室材料和化学品的控制使用, 包括少量的酸和酒精,以及液体(即唾液、血液)以及来自客户的组织样本。我们不是故意的 处理有传染性的样本。我们、我们的合作者和服务提供商受到澳大利亚联邦、州和地方政府的严格监管 管理职业健康和安全标准的法律和法规,包括管理使用、储存、搬运和处置的标准 这些材料和某些废品。然而,我们可能要对意外污染或排放或由此产生的任何后果负责。 危险材料造成的伤害,以及病人样本和数据的运输、处理和存储。如果我们、我们的合作者或 如果服务提供商未能遵守适用的法律或法规,我们可能会被要求支付罚款或对任何 由此造成的损害和这一责任可能超过我们的财力。此外,未来对环境健康和安全的变化 法律可能会导致我们产生额外的费用或限制我们的运营。

 

在 此外,我们的合作者和服务提供商可能正在使用这些相同类型的危险材料,包括危险化学品, 与我们的合作有关。如果发生诉讼或调查,我们可能会对造成的任何伤害负责 因接触或释放这些危险材料或可能含有传染性材料的客户样本而对个人或财产造成影响。 此责任的成本可能超过我们的资源。虽然我们为这些风险维持广泛形式的责任保险,但 我们的承保水平或广度可能不足以完全涵盖潜在的责任索赔。

 

我们 工业受到快速变化的技术以及与基因和遗传变异相关的新的和越来越多的科学数据的影响 以及它们在疾病中的作用。

 

我们的 如果不能开发测试来跟上这些变化的步伐,我们可能会被淘汰。近年来,在以下方面取得了许多进展 用于分析大量基因组信息以及遗传学和基因变异在疾病和治疗中的作用的方法 治疗。我们的行业已经并将继续以快速的技术变革、越来越大的数据量、 频繁推出新的测试服务和不断发展的行业标准,所有这些都可能使我们的测试过时。我们未来的成功 还将取决于我们是否有能力在及时和经济高效的基础上跟上客户不断变化的需求并追求 技术和科学进步带来的新的市场机遇。我们的测试可能会过时,我们的业务 除非我们不断更新我们的产品以反映关于基因和遗传变异的新科学知识,否则会受到不利影响 以及它们在疾病和治疗疗法中的作用。

 

我们 依靠我们的学术和企业合作伙伴的合作努力来研究、开发和商业化我们的产品。 我们的合作伙伴违反义务或终止关系可能会剥夺我们宝贵的资源并需要 额外的时间和金钱投资。

 

我们 我们产品的研究、开发和商业化战略历来涉及达成各种安排 与学术界、企业合作伙伴和其他人合作。因此,我们战略的成功部分取决于这些关系的强度 这些外部各方尽最大努力承担自己的责任并执行任务并做出反应 及时的。我们的合作者也可能是我们的竞争对手。我们不一定能控制资源的数量和时间 我们的合作者致力于履行其合同义务,但我们不确定这些各方是否会履行其义务 正如预期的那样,或者任何收入将从这些安排中获得。

 

如果 我们的协作者违反或终止了与我们的协议,或者未能及时开展他们的协作活动 在这种合作安排下,候选产品或研究计划的开发或商业化可以是 延迟了。如果是这样,我们可能被要求承担不可预见的额外责任或致力于不可预见的额外责任。 用于这种开发或商业化的资金或其他资源,或者这种开发或商业化可以终止。这个 终止或取消合作安排可能会对我们的财务状况、知识产权状况产生不利影响 和一般业务。此外,合作者和我们之间的分歧可能会导致合作研究、开发 或某些产品的商业化,或可能需要或导致正式的法律程序或仲裁解决。这些后果 可能既耗时又昂贵,并可能对公司产生重大不利影响。

 

我们 依赖学术和企业合作者、许可人、被许可人、独立人士提供的科学、技术和临床数据 承包商和其他人参与潜在治疗方法的评估和开发。该数据可能存在错误或遗漏 这将对这些方法的发展产生重大不利影响。

 

如果 我们唯一的实验室合作伙伴的设施变得无法运行,我们可能无法进行测试,我们的业务也将 伤害.

 

我们 在很大程度上依赖于我们在澳大利亚墨尔本的唯一实验室设施,该实验室已获得美国CLIA认证。 我们目前的实验室场地租约将于2025年2月28日到期。为了减轻这一风险并提供更大的测试能力和 为了提高灵活性,我们于2024年6月与总部设在德克萨斯州休斯敦的领先专业基因实验室Gene by Gene(GBG)建立了合作伙伴关系。 GBG最先进、经过高度认证的设施(CLIA、CAP、AABB和CDPH获得许可)能够处理超过25,000个 每月的测试大大增加了genType的运营能力。合作的最初重点是专注于测试 并在北美证明了这个解决方案。2024年7月26日,我们宣布,作为GTG所有遗传型测试重组的一部分 在北美市场测试成功后,将转移到GBG。一旦我们关闭了墨尔本的实验室 我们将依靠GBG来执行我们的测试,维护我们的CLIA和其他所需的认证或执照。如果我们失去了我们的 CLIA认证或其他所需的认证或许可证,或如果GBG设施因自然或 人为灾难,包括洪水和停电,我们将很难或不可能在一段时间内进行测试 时间的流逝。无法执行我们的测试或积压的测试,如果我们GBG的设施无法运行 即使是很短的一段时间也可能导致客户流失或损害我们的声誉,我们可能无法重新获得这些客户 在未来。

 

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AS 我们将不再拥有自己的设施,我们将依赖第三方,他们拥有所需的设施,并拥有既定的国家许可证 和CLIA认证,来执行我们的测试。作为向GBG过渡的一部分,我们已经发展了我们的GenType解决方案、系统和流程 能够与第三方实验室集成,提供更高的灵活性。然而,我们不能向您保证我们会 能够找到另一家愿意遵守所需程序的CLIA认证机构,该实验室将愿意 在商业上合理的条件下进行测试,或者它将能够满足我们的质量标准,而不是GBG 是必需的。为了重新建立一个替代的临床参考实验室设施,我们必须花费相当长的时间 和资金,以确保足够的空间,建设设施,招聘和培训员工,并建立额外的运营 以及支持第二个设施所需的行政基础设施。我们可能无法复制,或者可能需要相当长的时间 我们的测试过程或结果将在新的设施中进行。此外,任何新的临床参考实验室设施都将受到 CLIA下的认证和包括加利福尼亚州和纽约州在内的几个州的许可,这可能需要大量的 时间和结果导致我们开始运营的能力被推迟。

 

的 我们高级管理团队的关键成员流失,或者我们无法吸引和留住高技能的科学家、临床医生和销售人员 可能会对我们的业务产生不利影响。

 

我们 成功在很大程度上取决于我们执行管理团队主要成员和其他主要管理人员的技能、经验和绩效 岗位当我们继续开发技术和测试流程时,这些人中的每个人的共同努力都至关重要, 继续我们的国际扩张并转型为拥有多种商业化产品的公司。如果我们失去一个或多个 在这些关键员工中,我们可能会在有效竞争、开发技术和实施业务方面遇到困难 战略布局

 

我们的 研发计划和商业实验室的运作取决于我们吸引和留住高技能科学家的能力 和技术人员,包括有执照的实验室技术人员、化学家、生物统计学家和工程师。我们可能无法吸引或 由于生命科学企业之间对人才的竞争,未来留住合格的科技人员。 此外,如果未来几年临床实验室科学家短缺,这将使招聘变得更加困难。 有足够数量的合格人员。我们还面临着来自大学以及公共和私人研究机构的竞争。 招聘和留住高素质的科学人才。我们的成功还取决于我们吸引和留住销售人员的能力 具有丰富的肿瘤学经验,并与内科肿瘤学家、病理学家和其他医院人员有密切的关系。 我们可能在寻找、招聘或留住合格的销售人员方面遇到困难,这可能会导致延迟或下降 采用我们的测试。如果我们无法吸引和留住必要的人员来实现我们的业务目标,我们可能会 体验限制,这可能会对我们支持研发和销售计划的能力产生不利影响。

 

变化 FDA监管我们测试的方式可能会导致我们提供测试和测试的延迟或额外费用 未来发展。

 

从历史上看, 美国食品和药物管理局(FDA)对大多数实验室开发的产品行使了执法自由裁量权 测试(“LDT”),并没有要求实验室提供LDT遵守该机构的医疗要求 设备(例如,设施注册、设备清单、质量体系法规、上市前审批或上市前审批),以及 上市后控制)。然而,近年来,FDA公开宣布它打算对某些LDT进行监管,并发布了两份草案 指导文件,阐述了拟议的分阶段实施的基于风险的监管框架,该框架将适用不同级别的FDA监督 敬LDTS。然而,这些指导文件在奥巴马政府任期结束时被撤回,取而代之的是一次非正式讨论 这份文件反映了FDA收到的关于低密度脂蛋白法规的一些反馈。FDA承认,1月份的讨论文件 2017年并不代表FDA的正式立场,也不具有可执行性。尽管如此,FDA希望分享其合成的 它收到的反馈意见是希望它可以推动关于未来LDT监督的公众讨论。尽管有讨论 文件,FDA继续行使执法自由裁量权,并可随时决定根据具体情况对某些LDT进行监管, 这可能会导致提供我们的测试和我们未来可能开发的测试的延迟或额外费用。

 

作为 根据政策,FDA通常不会审查在单一实验室中创建和执行的直接面向消费者的LDT, 如果仅在医疗保健提供者开出处方的情况下才向患者提供这些药物。

 

立法 当前和往届国会已提出了解决FDA对LDT监督的提案,我们预计 新的立法提案将不时提出。2022年5月17日,参议院健康、教育、劳工和养老金(HELP) 委员会发布了FDA用户费用重新授权立法包,其中包含了Inbox Accurate Leading-edge的内容 IVCT开发(AMEID)法案将建立由传统体外组成的新一类体外临床测试(IVCT) 诊断和LDT,并授予FDA在上市前对其进行审查和批准的权力。这种安排增加了 国会将通过一项立法,赋予FDA监管LDT的明确权力,但最终结果难以预测 在这个时候

 

如果 FDA最终监管某些LDT,无论是通过最终指南、最终法规还是按照国会的指示,我们的测试可能 须遵守某些额外监管要求。遵守FDA的要求可能昂贵、耗时, 并使我们遭受重大或意外的延误。除非我们可能需要获得上市前许可或批准才能履行 或继续执行LDt,我们无法向您保证我们将能够获得此类授权。即使我们获得监管许可 或在需要时批准,此类授权可能不用于我们认为具有商业吸引力或至关重要的预期用途 我们测试的商业成功。因此,将FDA的要求应用到我们的测试中可能会产生重大影响 对我们的业务、财务状况和运营业绩产生不利影响。

 

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我们 业务可能会因许可证的丧失或暂停、根据或的罚款或处罚或未来的变化而受到损害 改变对我们所遵守的CLIA或州实验室许可法的解释。

 

的 临床实验室测试行业受到广泛的联邦和州监管。实施CLIA的法规规定 适用于几乎所有在美国运营的临床实验室的联邦监管标准(无论地点、规模如何 或实验室类型),包括由医生在其办公室操作的实验室,要求他们获得联邦政府的认证 或由联邦批准的认证机构进行。CLIA是一项美国联邦法律,监管对以下药物进行检测的临床实验室 来自人类的标本,旨在为疾病的诊断、预防或治疗提供信息。CLIA是 旨在通过强制执行人员领域的具体标准来确保美国临床实验室的质量和可靠性 资格、管理和参与能力测试、患者测试管理、质量控制、质量保证 和检查。

 

某些 美国各州还要求州实验室许可证,以测试从居住在这些州的患者或请求处收到的样本 从这些州的订购医生收到。我们目前在加利福尼亚州、纽约州、马里兰州、 罗德岛州和宾夕法尼亚州。

 

此外, CLIA不会先发制人,州法律在某些情况下可能比联邦法律更严格,并要求更多的人员资格, 质量控制、记录维护和能力测试。对未能遵守CLIA和国家要求的制裁可以 暂停、吊销或限制实验室开展业务所必需的CLIA证书,以及 巨额罚款、民事和刑事处罚、实施定向改正计划和现场监测。如果我们要 如果被发现违反CLIA计划要求并受到制裁,我们的业务和声誉可能会受到损害。几个 各州都有类似的法律,我们可能会受到类似的惩罚。如果公司拥有的一个实验室的CLIA认证 被暂停或撤销,可能使本公司在两年内无法拥有或经营任何其他受CLIA监管的实验室。此外, 即使我们有可能让我们的实验室恢复合规,我们也可能会产生巨额费用,并有可能蒙受损失 这样做的收入。

 

我们 无法向您保证适用的法规和法规不会由检察、监管或司法部门解释或适用 这将对我们的业务产生不利影响。对违反这些法规和法规的潜在制裁包括 巨额罚款以及暂停或丧失各种许可证、证书和授权,这可能会造成重大不利影响 对我们业务的影响。此外,遵守未来的立法可能会对我们提出额外要求,这可能会带来高昂的成本。

 

失败 建立并遵守适当的质量标准,以确保绩效达到最高水平的质量 我们的测试服务以及我们产品的设计、制造和营销可能会对我们的运营结果产生不利影响 并对我们的声誉产生不利影响。

 

的 提供临床测试服务以及诊断产品的设计、制造和营销涉及某些固有风险。 我们提供的服务以及我们设计、制造和营销的产品旨在为医疗保健提供信息 提供者提供患者护理。因此,我们服务和产品的用户对错误的敏感性可能比 用于其他目的的服务或产品的用户。同样,履行我们服务时的疏忽也可能导致伤害 或其他不良事件。我们可能会因实验室的作为或不作为而根据普通法、医生责任或其他责任法被起诉 人员的我们面临随之而来的巨额损害赔偿风险和声誉风险。

 

我们 可能会因违反《FCPA》和其他全球反贿赂法而受到不利影响。

 

我们 受《反海外腐败法》的约束,该法案禁止公司及其中介机构违反法律向非美国政府付款 官员为获取或保留业务或获取任何其他不正当利益的目的。我们正在增加我们的直销 以及美国以外的运营人员,我们在这方面的经验有限。我们使用有限数量的独立经销商 为了在国际上销售我们的测试,这需要高度警惕地维持我们反对参与腐败的政策 活动,因为这些分销商可以被视为我们的代理,我们可能要对他们的行为负责。其他美国 根据《反海外腐败法》,医疗器械和制药领域的公司因允许其代理人偏离规定而面临刑事处罚 在与这些人做生意时采取适当的做法。我们在司法管辖区亦须遵守类似的反贿赂法律。 包括澳大利亚的反贿赂法律,该法律也禁止商业贿赂,并将其定为公司犯罪 未能防止贿赂。这些法律性质复杂和影响深远,因此,我们不能向你保证我们不会。 将来被要求改变我们的一个或多个做法以符合这些法律或这些法律或 它的解释。任何违反这些法律的行为,或对此类违规行为的指控,都可能扰乱我们的运营,涉及重大 管理分心,涉及大量成本和开支,包括法律费用,并可能对 我们的业务、前景、财务状况或经营结果。我们还可能招致严厉的惩罚,包括刑事和民事处罚。 处罚、返还和其他补救措施。

 

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如果 我们未能对财务报告保持有效的内部控制系统,我们可能无法准确报告我们的财务 结果或防止欺诈。

 

有效 对财务报告的内部控制对于我们提供可靠的财务报告以及充分的披露是必要的 控制措施和程序旨在防止欺诈。任何未能设计和实施有效的内部控制体系的行为都可能 揭露我们对财务报告的内部控制中被认为是重大弱点的缺陷。内部效率低下 控制措施还可能导致投资者对我们报告的财务信息失去信心,这可能会对我们的财务信息产生负面影响。 美国存托凭证和我们普通股的交易价格。

 

作为 2024年6月30日,我们的首席执行官兼首席财务官评估了我们财务内部控制的有效性 报告.年内,我们没有发现财务报告内部控制存在任何重大缺陷。但我们不能 向您保证,我们迄今为止采取的措施以及我们未来可能采取的行动将足以防止潜在的未来 物质弱点。

 

失败 遵守健康信息隐私法,包括HIPAA或其他美国联邦或州健康信息隐私和安全 适用的法律可能会对我们的业务产生负面影响。

 

根据 对1996年的健康保险可携带性和责任法案,或HIPAA,经健康信息技术促进经济修订 和临床健康法案2009年,或HITECH,涵盖实体(包括健康计划、医疗信息交换中心和某些医疗保健 提供商),以及他们各自的创建、接收、维护或传输可单独识别的“业务伙伴” 为承保实体或代表承保实体提供的关于保护个人的隐私、安全和传输的健康信息 可识别的健康信息。受HIPAA约束的个人和实体必须遵守全面的隐私和安全 关于使用和披露受保护健康信息的标准,以及电子交易标准,包括 指定的交易记录和代码集规则。根据HITECH,扩大了HIPAA,包括要求提供某些情况的通知 发现数据泄露、患者直接访问实验室记录、扩展某些HIPAA隐私和安全标准 直接向商业伙伴提供援助,加大对不遵守规定的惩罚力度,并加大执法力度。没有遵守HIPAA或 其他适用的美国联邦和州卫生信息隐私和安全法律可能会导致重大处罚

 

如果 我们或我们的合作伙伴未能遵守复杂的联邦、州、地方和外国法律和法规 我们的业务,我们可能会遭受严重的后果,这可能会对我们的经营业绩和财务状况产生重大不利影响。

 

我们 运营受到广泛的联邦、州、地方和外国法律和法规的约束,所有这些法律和法规都可能发生变化。美国 可能适用于我们业务的法律和法规包括(除其他外):

 

CLIA, 它要求实验室获得联邦政府的认证,以及州许可证法;
林业局 法律法规;
HIPAA, 它对受保护的健康信息和要求的隐私和安全强加了全面的联邦标准 用于某些标准化的电子交易;HITECH对HIPAA的修正案,该修正案加强和扩大了HIPAA 隐私和安全合规要求,增加对违规者的惩罚,将执法权力扩大到州总检察长 并对违规通知提出要求;
状态 规范基因检测和保护基因检测结果隐私的法律,以及保护隐私的州法律 以及健康信息和个人数据的安全,并要求向受影响的个人和州监管机构报告违规行为;
联邦制 以及国家欺诈和滥用法律,如虚假声明和反回扣法律,以及禁止自我推荐;
部分 《2014年联邦医疗保险保护法》(PAMA)的216条,该法案要求适用的实验室报告 及时、准确地提供私人付款人数据;
状态 规定报告和其他合规相关要求的法律;以及
相似的 在我们开展业务的国家适用于我们的外国法律和法规。

 

这些 法律和法规很复杂,需要接受法院和政府机构的解释。我们不遵守规定可能 导致重大行政民事或刑事处罚,被排除在州和联邦医疗保健计划之外, 监禁、驱逐以及禁止或限制我们的实验室提供或接受我们的付款的能力 服务我们相信我们实际上遵守了适用于我们的所有法定和监管要求,但存在 一个或多个政府机构可能采取相反立场,或者私人政党可能根据qui tam提起诉讼的风险 联邦虚假索赔法或类似州法律的条款。此类事件,无论结果如何,都可能损害我们的声誉 并对与第三方(包括管理式护理组织和其他私人第三方)的重要业务关系产生不利影响 付款人。

 

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一 未能遵守适用于我们业务的任何联邦或州法律,特别是与 消除医疗保健欺诈可能会对我们的业务产生不利影响。

 

的 医疗保健行业受到不断变化的政治、经济和监管影响,可能会影响我们的业务。在过去 多年来,医疗保健行业一直受到政府监管的加强,并受到潜在的干扰 由于立法举措和政府监管及其司法解释。虽然这些规定可能不会 在任何情况下都直接影响我们或我们的产品,它们将影响整个医疗保健行业,并可能影响患者的使用 我们的服务。我们目前仅接受客户的付款,不接受任何第三方付款人(例如政府医疗保健计划) 或健康保险公司。由于这种方法,我们不受影响许多其他参与者的许多法律和法规的约束 在医疗保健行业。

 

如果 政府对像我们这样的公司实行更广泛的监管控制,或者如果我们确定将改变我们的商业模式 并接受第三方付款人计划和/或参与第三方付款人计划、我们运营的复杂性和合规义务 将会大幅增加。未遵守任何适用的联邦、州和地方法律和法规可能会造成重大影响 对我们的业务、财务状况和运营结果产生不利影响。

 

而当 我们寻求在符合所有适用的医疗保健法律和法规、监管或执法机构的情况下开展业务 可能不同意我们对这些法律和法规的解释,并可能寻求对我们执行法律补救或处罚 违规行为。因违反这些或其他法律或法规而对我们提起的任何诉讼,即使我们成功地防御了 这可能会导致我们招致巨额法律费用,并转移我们管理层对业务运营的注意力。 如果我们的操作被发现违反了任何联邦、州、欺诈和滥用或其他医疗保健法律和法规 适用于我们的,我们可能会受到惩罚,包括重大的刑事、民事和行政处罚、损害赔偿和罚款, 交还、额外的报告要求和监督、对个人的监禁以及合同损害和名誉损害 伤害。我们还可能被要求缩减或停止我们的业务。上述任何后果都可能严重损害我们的业务 以及我们的财务业绩。我们可能需要不时地改变我们的运营,特别是定价或计费做法,以应对 更改对这些法律和法规的解释或关于这些法律和法规的监管或司法裁决。 无论结果如何,这些事件都可能损害我们的声誉,损害我们与其他公司之间的重要业务关系 医疗保健提供者、付款人和其他人。

 

我们 面临与货币汇率波动相关的风险,这可能会对我们的经营业绩产生不利影响。

 

我们 获得我们收入的一部分,并以澳元以外的货币支付一部分费用,如美元。 美元、欧元和英镑。因此,我们面临这些外币之间汇率波动的风险。 澳元,这可能会影响我们的业务结果。如果澳元兑外币走强, 这些外币计价交易的换算将导致收入和运营费用的减少。我们可能不会 能够通过增加收入来抵消不利的外汇影响。除了持有外币银行账户外, 我们持有以外币计价的销售收入,为一些外币支出提供了天然的对冲。 目前没有利用其他对冲策略来缓解外汇风险。即使我们实施对冲策略来 降低外汇风险,这些策略可能不会完全消除我们对汇率波动的风险敞口,并将 涉及自身的成本和风险,例如持续管理时间和专业知识、实施战略的外部成本和潜力 会计方面的影响。

 

政府 对基因研究或测试的监管可能会对我们服务的需求产生不利影响,并损害我们的业务和运营。

 

在……里面 除了管理医疗保健的监管框架外,基因研究和检测一直是公众关注和监管的焦点 仔细检查。联邦、州和/或地方政府不时通过有关进行基因研究和 基因测试。在未来,这些法规可能会限制或限制基因研究活动以及对 出于研究或临床目的。此外,如果采用这样的规则,这些规则可能不一致或冲突 与其他政府机构通过的法规一样。与基因研究活动相关的法规可能会对我们的 有能力进行我们的研发活动。限制基因检测的法规可能会对我们的能力产生不利影响 营销和销售我们的产品和服务。因此,任何这种性质的规定都可能增加我们的运营成本 或限制我们开展检测业务的能力。

 

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失败 在我们的信息技术系统中可能会显着增加测试周转时间或对计费流程或其他方面的影响 扰乱我们的运营。

 

我们 实验室运营在一定程度上取决于我们信息技术系统的持续性能。我们的信息技术 系统可能容易受到物理或电子入侵、计算机病毒和类似中断的影响。持续系统故障 或实验室操作中的系统中断可能会扰乱我们处理实验室收件箱、执行测试、 并及时提供测试结果和/或计费流程。我们的信息技术系统故障可能会对我们造成不利影响 我们的业务和财务状况。

 

任何 我们网站或计算机或物流系统的服务出现严重中断,无论是由于我们的信息故障 技术系统或第三方供应商的技术系统可能会损害我们的声誉并可能导致客户流失。

 

客户 通过我们的网站购买和访问我们的服务。我们的声誉和吸引、留住和服务客户、患者、 和会员依赖于我们网站、网络基础设施和内容交付流程的可靠性能。中断 在任何这些系统中,无论是由于系统故障、计算机病毒还是物理或电子侵入,都可能影响安全性 或我们网站(包括我们的数据库)的可用性,并阻止我们的客户、患者和会员访问和使用我们的 服务

 

我们 系统和操作还容易受到火灾、洪水、停电、电信故障、恐怖分子的损坏或中断 袭击、战争行为、电子和物理闯入、地震和类似事件。例如,我们的总部位于 澳大利亚墨尔本最近丛林火灾和洪水活动有所增加。如果发生任何灾难性故障 涉及我们的网站,我们可能无法提供我们的网络流量。此外,我们位于澳大利亚墨尔本的唯一实验室负责 对于我们geneType风险评估测试的很大一部分运营,这些运营将受到重大干扰 这些事件中的任何一个将要发生的事件。上述任何风险的发生可能会导致我们的系统损坏或可能 导致他们完全失败,我们的保险可能不涵盖此类风险,或者可能不足以赔偿我们可能发生的损失 发生.

 

此外, 我们的业务模式取决于我们向客户交付试剂盒以及处理试剂盒并退回给我们的能力。这需要 我们的物流提供商和第三方航运服务之间的协调。运营中断可能由外部因素造成 我们的控制,例如敌对行动、政治动荡、恐怖袭击、自然灾害、流行病(例如COVID-19)和公共卫生 紧急情况,影响我们的运营和客户所在的地区。我们可能无法有效预防或缓解 此类干扰的影响,特别是在灾难性事件的情况下。此外,运营中断可能会发生 假期期间,导致我们套件的交付延迟或失败。任何此类中断都可能导致收入损失、 客户和声誉损害,这将对我们的业务、运营业绩和财务状况产生不利影响。

 

违反 网络或信息技术、自然灾害或恐怖袭击可能会对我们的业务产生不利影响。

 

网络攻击 或其他对信息技术安全的破坏、自然灾害、恐怖主义行为或战争可能导致硬件故障或 扰乱我们的产品测试或研发活动。成功的频率大幅增加 以及近年来针对公司的不成功的网络攻击。这样的事件可能会导致我们无能为力,或者我们无法合作 合作伙伴,运营设施以开展和完成必要的活动,即使活动的时间有限 时间过长,可能会导致我们的商业或研究活动的重大费用和/或重大损害或延误。虽然我们维持 如果承保其中一些事件,与这些事件相关的潜在责任可能会超过我们维持的保险范围。

 

伦理 以及围绕基因信息使用的其他担忧可能会减少对我们服务的需求。

 

公共 关于与基因检测的保密性和适当使用相关的道德问题的意见可能会影响政府当局 呼吁限制或监管基因检测的使用。此外,这些当局可以禁止基因检测 容易患某些疾病,特别是对于那些无法治愈的疾病。此外,不利的宣传或公众舆论 即使没有任何政府监管,与基因研究和测试相关的潜在市场也可能会减少 我们的产品和服务。

 

风险 与我们的知识产权相关。

 

这个 基因专利和围绕获得遗传知识的问题是许多国家广泛和持续的公开辩论的主题 国家。举例来说,澳大利亚法律改革委员会此前曾对基因的社会用途进行了两次调查 信息。我们拥有的有关“非编码”DNA的专利范围很广,也一直是争论的主题 以及媒体上的一些批评。个人或组织,在这些专利颁发的任何一个国家,可以 采取法律行动,寻求他们的修订、撤销或无效,这是以前多次发生过的事情 在不同的司法管辖区,尽管我们在所有这类案件中都取得了胜利。此外,任何时候我们对当事人采取法律行动 这侵犯了我们的专利,我们面临的风险是,侵权者将通过专利无效或其他类似的反索赔来为自己辩护 索赔。随后的法律行动可能会推翻、宣布无效或限制我们专利的范围。

 

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我们 严重依赖专利和专有技术,这可能无法保护我们的业务。

 

我们 依靠我们的专利权、专利申请以及与基因相关的专利和专利申请的独家许可证组合 技术。我们希望积极申请专利并保护我们的专有技术。然而,我们不能确定任何额外的 因为我们的国内或国外专利申请,或者我们的任何一项专利都能经受住挑战,我们才会被授予专利 被其他人。颁发给我们或由我们许可的专利可能会被侵犯,或者第三方可以独立开发相同或类似的技术。 同样,我们的专利可能不会为我们提供有效的保护,使我们免受竞争对手的伤害,包括那些可能寻求专利的人 阻止、限制或干扰我们的产品,或可能需要我们获得许可并支付大量费用或版税的情况 这样的第三方,以使我们能够开展业务。我们可能会就我们的专利和其他问题起诉或被第三方起诉 知识产权。这些诉讼往往代价高昂,并会从我们的运营中转移宝贵的资金、时间和技术资源 并让管理层分心。

 

我们 还依赖于未获得专利的专有技术和数据库。尽管我们要求员工、顾问和合作者签署 保密协议,我们可能无法充分保护我们在此类未获得专利的专有技术和数据库中的权利, 这可能会对我们的业务产生重大不利影响。例如,其他人可以独立开发实质上等效的专有技术 信息或技术或以其他方式访问我们的专有技术或向我们的竞争对手披露我们的技术。

 

我们 在某些司法管辖区保护我们的知识产权可能会遇到困难,这可能会削弱我们的知识产权的价值。 在这些司法管辖区的财产权。

 

的 一些司法管辖区的法律对知识产权的保护程度不如美国和澳大利亚的法律 许多公司在此类其他司法管辖区保护和捍卫此类权利时遇到了重大困难。如果 我们或我们的合作伙伴在保护知识分子方面遇到困难,或者无法有效保护知识分子 我们在此类司法管辖区的业务的产权,这些权利的价值可能会减少,并且我们可能面临额外的竞争 来自这些司法管辖区的其他人。此外,许多国家限制专利对政府机构或政府的可转让性 承建商在这些国家,专利所有者的补救措施可能有限,这可能会严重降低此类专利的价值。

 

我们 极端天气条件或其他及时运输中断的影响可能会对运营产生不利影响 标本。

 

我们 可能需要将样本从美国或其他遥远地点运输到我们位于澳大利亚墨尔本的实验室。我们 极端天气状况或其他中断可能会对运营产生不利影响,例如新冠疫情 及时运输此类标本或以其他方式不时提供我们的服务。任何此类事件的发生 和/或因此对我们的运营造成干扰可能会损害我们的声誉并对我们的运营业绩产生不利影响。

 

我们 CIT平台将使我们面临各种风险。

 

我们 消费者发起的测试平台(CIT)允许消费者直接请求我们与相关从业者在线进行的任何测试 在此过程中,将面临各种风险,包括:

 

的 未能保护个人医疗信息的风险;
的 平台网络安全被破坏的风险;以及
的 平台无法按预期运行的风险。

 

我们的 是否有能力在特定的美国州或非美国司法管辖区提供我们的服务取决于适用的法律管理远程 医疗保健、医疗实践和医疗保健服务一般在这些地点进行,受到政治、监管等方面的变化 和其他影响,以及企业行医的局限性。一些州医学委员会已经制定了新的规则或解释 现有规则限制或限制远程医疗的做法。美国各州或非美国司法管辖区的程度 认为构成行医的特定行为或关系可能会发生变化和不断变化的解释 (在美国各州的情况下)医学委员会和州总检察长以及(在非美国司法管辖区的情况下) 相关的监管和法律当局,各自拥有广泛的自由裁量权。因此,我们必须监督我们在每个方面遵守法律的情况 ,我们不能保证我们的活动和安排,如果受到质疑, 将被认定为符合法律规定。如果成功的法律挑战或相关法律的不利变化发生, 我们可能会受到重罚。此外,如果我们无法调整我们的业务模式以遵守这些法律,我们的运营 可能会对我们的业务、财务状况和 手术的结果。

 

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停药 或召回现有测试产品或我们的客户使用新技术进行自己的测试可能会对我们的测试产生不利影响 业务

 

停药 或召回现有测试产品或我们的客户使用新技术进行自己的测试可能会对 公司的业务。制造商可能会停止或召回我们用于进行实验室操作的试剂、检测套件或仪器 试验.此类停止或召回可能会对我们的成本、测试量和收入产生不利影响。此外,技术的进步 可能会导致开发更具成本效益的技术,例如可由医生操作的护理点测试设备 或其他医疗保健提供者在其办公室或由患者自己提供,而不需要独立临床实验室的服务。 此类技术的开发及其客户的使用可能会减少对我们实验室测试服务和利用的需求 我们提供的某些测试并对我们的收入产生负面影响。

 

的 CRS测试可能无法获得必要的监管许可,我们可能无法产生任何收入。

 

全 我们现有的产品在澳大利亚受到治疗商品协会(TGA)的监管,美国受到FDA和/或 其他国内和国际政府、公共卫生机构、监管机构或非政府组织。这个过程 获得潜在新产品所需批准或许可的时间因特定产品的性质和用途而异。 这些过程可能涉及冗长和详细的实验室测试、人体临床试验、采样活动和其他昂贵、耗时的活动 程序。向监管机构提交申请并不保证监管机构会批准或 产品的通行证。每个主管当局可以强加自己的要求,并可以推迟或拒绝批准或批准,甚至 虽然一种产品已经在另一个国家获得批准。获得批准或批准所需的时间因性质而异 并可能导致从提交申请之日起经过一段相当长的时间。延误 在审批或审批过程中,增加了我们不能成功推出或销售主题产品的风险,以及 在投入大量时间和资源发展计划后,我们可能会被要求放弃计划。

 

如果 我们的CRS测试需要获得和维持FDA批准,它将遵守持续的政府法规和其他法规 外国法规。

 

如果 FDA认定执行裁量权是不适当的,或者LDT通常受FDA的监管,上市前 我们的PRS测试或我们未来的任何测试、我们可能开发的诊断测试套件、 或其他将被归类为医疗器械的产品,即获得监管许可或批准上市的过程 医疗设备可能既昂贵又耗时,我们可能无法及时获得这些许可或批准, 如果真的有的话。特别是,FDA只允许在新的医疗设备获得许可后进行商业分销 根据《联邦食品、药品和化妆品法》第510(K)条,或者是经批准的上市前批准申请的对象,或者 通过De Novo分类过程对设备进行PMA或重新分类,除非设备明确免除这些 要求。FDA将通过510(K)过程批准低风险医疗设备的营销,如果制造商证明 新产品基本上等同于其他510(K)批准的产品。被认为构成最大风险的高风险设备, 例如维持生命的、维持生命的或可植入的装置,或不被认为基本上等同于先前清除的装置 设备,需要PMA的批准。PMA过程比510(K)-许可过程更昂贵、更漫长、更不确定。PMA 应用程序必须有大量数据支持,包括但不限于技术、临床前、临床试验、生产 和标签数据,以证明该设备的安全性和有效性令FDA满意,以满足其预期用途。德意志银行 Novo分类过程是对自动归类为III类的医疗设备进行分类的替代途径,但是 这是低到中等的风险。如果制造商不能识别,制造商可以提交直接De Novo审查的请愿书 适当的谓词装置和新装置或该装置的新用途呈现中等或低风险。De Novo分类可以 也可在收到向FDA提交510(K)后的“实质上不等同”的信件后获得。我们目前 商业化的产品没有得到FDA的批准或批准,因为它们是在FDA的执法自由裁量权下销售的 对于LDTS来说。即使需要并批准产品的监管许可或批准,此类许可或批准也可能受 限制产品销售的预期用途,降低我们成功实现产品商业化的潜力 并从产品中产生收入。如果FDA确定我们的宣传材料、标签、培训或其他营销或 教育活动构成推广未经批准的用途,它可以要求我们停止或修改我们的培训或宣传 材料或使我们受到监管执法行动。

 

我们 还受有关我们产品制造和销售的其他联邦、州和外国法规的约束。我们未能 遵守美国联邦、州和外国政府法规可能会导致发出警告信或无标题信, 政府调查、实施禁令、暂停或失去监管许可或批准、产品召回、终止 分销、产品扣押或民事处罚。在最极端的情况下,刑事制裁或关闭我们的制造工厂 是可能的,其中任何一种都可能对我们的业务、经营业绩和前景产生不利影响。

 

的 FDA和类似的外国政府当局有权要求召回受监管产品 设计或制造中的缺陷或缺陷。就FDA而言,要求召回的权力必须基于FDA的调查结果 该设备造成严重伤害或死亡的合理可能性。此外,外国政府机构 如果设计或制造中存在材料缺陷或缺陷,有权要求召回我们的产品。

 

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制造商 如果发现设备有任何重大缺陷,可以主动召回产品。政府强制的或自愿的 我们的召回可能是由于组件故障、制造错误、设计或标签缺陷或其他缺陷以及 问题。召回我们的任何产品都会转移管理和财务资源,并对我们的财务状况产生不利影响 以及手术的结果。FDA要求某些类别的召回在召回发生后10个工作日内向FDA报告 召回启动。公司被要求保留某些召回记录,即使这些召回不需要向FDA报告。我们可以 在未来启动涉及我们产品的自愿召回,我们确定这些召回不需要通知FDA。如果FDA 如果不同意我们的决定,他们可能会要求我们将这些行为报告为召回。未来的召回声明可能会对 我们在客户中的声誉对我们的销售产生了负面影响。此外,FDA可能会对未报告的情况采取执法行动 召回时进行的。

 

下降 一般经济或商业状况可能会对我们的业务产生负面影响。

 

如果 当前的经济气候恶化,我们的业务,包括我们获取患者样本和可预见的诊断市场 我们可能成功开发的测试以及我们供应商和第三方付款人的财务状况可能会产生不利影响 受到影响,对我们的业务、财务状况、运营业绩和现金流造成负面影响。

 

风险 与我们的资产相关

 

我们 ADS可能会从纳斯达克资本市场退市。

 

在……上面 2020年3月13日,本公司收到纳斯达克的决定书(以下简称《决定书》),表示本公司未遵守 股东权益规则。信中指出,《上市规则》第5815(D)(4)(B)条不允许有缺陷的发行人 在股东权益中,如果发行人未能遵守该条款,应向纳斯达克工作人员提交一份合规计划 在听证小组(“小组”)确定遵守情况的一年内。信中写道,由于公司是 在合规函发出后一年内未遵守股权规则的员工,不能允许我们提交合规计划。 我们要求与专家小组举行上诉听证会,以审查除名决定。在纳斯达克收到听证请求后 根据本公司的决定,纳斯达克暂停了我们的证券交易和提交25-NSE表格,等待陪审团的决定。 2020年4月30日举行了口头听证,在2020年5月12日的一封信中,小组批准了该公司的全部延期180天 直到2020年9月9日,公开披露完全符合纳斯达克规则规定的最低股东权益要求。这个 公司随后于2020年8月25日重新遵守纳斯达克上市规则第5550(B)(1)条。

 

对 2020年7月21日,我们完成了1,025,000份美国存托凭证的登记直接发行,每份代表公司普通股的六百(600)份 股票,购买价格为每股ADS 5.00美元,或每股普通股0.012澳元。的 此次发行的总收益约为5.1亿美元。针对此次发行,该公司同意发行39,975,000份认购权 每份可行使0.0104美元,自发行日期起5年内到期,至HC Wainwright & Co将构成筹集成本的一部分 资本

 

对 2021年1月25日,我们完成了1,250,000份美国存托凭证的登记直接发行,每家代表公司的六百(600)份 普通股,购买价格为每股ADS 5.25美元-或每股普通股0.01125澳元 份额此次发行的总收益约为656万美元。针对此次发行,公司同意发行48,750,000股 每份可行使0.010938美元的认购权,自发行日期起5年内到期,向HC Wainwright & Co将构成部分成本 筹集资本。上述认购证须经股东批准,该批准由公司股东授予 年度股东大会(AGM)于2021年11月24日举行。

 

对 2023年2月8日,我们完成了3,846,155份美国存托凭证的登记直接发行,每家代表公司的六百(600)份 普通股,购买价格为每股ADS 1.30美元。此次发行的总收益约为 5亿美元。针对此次发行,该公司同意发行250,000份可按每股1.625美元行使的期权,有效期为5年后 发行日期,致HC Wainwright & Co将构成筹集资金成本的一部分。上述认购证须受股东约束 批准

 

在……上面 2023年7月17日,本公司接到纳斯达克股票市场有限责任公司的通知,称其不符合最低投标价格 纳斯达克上市规则第5550(A)(2)条关于继续在纳斯达克资本市场上市的要求,自 公司在美国存托股份资本市场的美国存托股份(Airbnb)连续34个交易日低于1美元。纳斯达克 上市规则第5550(A)(2)条要求美国存托股份维持每股1美元的最低投标价格(《最低投标要求》), 而纳斯达克上市规则第5810(C)(3)(A)条规定,如果不足持续一段时间,则存在未能满足该要求的情况 连续30个工作日。《通知》对公司美国存托股份在纳斯达克首府上市无即时效力 市场。根据纳斯达克上市规则第5810(C)(3)(A)条,本公司自作出通知之日起计180个历日,即 2023年7月17日,重新遵守最低投标要求,在此期间,美国存托股份将继续在纳斯达克上交易 资本市场。这一缺陷在2023年12月经过公司所有类别的股份合并后得到了弥补 证券,包括普通股,其比例为每持有100份证券,即每100份普通股 本公司的股份将合并为一股本公司的普通股(“本地合并”)。在连接中 随着本地合并,公司也同步调整了其美国存托股份比例,从当时的1个美国存托股份代表 600股普通股换成1股美国存托股份相当于30股普通股(“比例变化”)。本地合并和 比率更改于2023年12月14日开盘时生效。

 

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对 2023年11月22日,我们召开了2023年年度股东大会(“2023年年度会议”)。在2023年年会上 会议上,我们的股东批准了所有类别证券的股份合并,包括比例为一(1)的普通股 每持有一百股证券,每一百股公司普通股将合并为一股普通股 公司股份(“本地合并”)。在本地整合方面,公司还同时 调整其ADS比率,从当时的1份ADS代表600股普通股的比率调整为1份ADS代表30股普通股 (the“比率变化”)。本地合并和比率变更均于12月开盘时生效 2023年14日。我们的普通股继续在ASX上交易,代码为“GTG”。美国存托凭证继续交易 纳斯达克证券交易所,代码为“GENE”。

 

对 在比率变更生效之日,ADS持有人必须强制将旧ADS交还给存管机构 按每五个“旧”ADS(Custip 37185 R307)换一个“新”ADS(Custip 37185 R406)的费率取消和交换 投降了直接注册系统或经纪账户中的ADS持有人将自动交换其ADS,无需 进一步行动。没有发行任何ADS。

 

在……上面 2024年4月18日,我们与机构投资者签订了最终协议(购买协议),提供 发行16,800,000股普通股,相当于560,000股美国存托凭证;及(Ii)预先出资认股权证,最多可购买合共 13,200,000股普通股,相当于440,000股美国存托凭证,登记直接发行,发行价为每股美国存托股份2美元和1.999美元 每个预先出资的认股权证,总收益约为200亿美元万。每个预先出资的认股权证可行使一份美国存托股份 行权价为每股0.001美元。预付资金认股权证可立即行使,并可随时行使,直至 所有预先出资的认股权证均已全部行使。此次发行于2024年4月22日结束。此外,根据采购协议, 投资者收到未经登记的认股权证,可购买总计3,000万股普通股,相当于1,000,000股美国存托凭证。 行权价为每美国存托股份2.00美元(“定向增发”)。认股权证将立即可行使,并将到期 自发行之日起五年。如果没有有效的登记声明,认股权证可以无现金方式行使 登记认股权证的美国存托凭证。

 

对 2024年8月23日,公司收到The通知 纳斯达克证券市场有限责任公司认为其不符合 自收盘以来,纳斯达克上市规则5550(a)(2)在纳斯达克资本市场继续上市的最低买入价要求 该公司美国存托股票(ADS)在纳斯达克资本市场的竞购价格连续30年低于1.00美元 个交易日根据纳斯达克上市规则5810(c)(3)(A),公司自通知之日起有180个日历日的期限 重新遵守最低出价要求,在此期间ADS将继续在纳斯达克资本市场交易。如果 在2025年2月19日之前的任何时间,至少连续10笔业务的ADS的出价收盘价为每份ADS 1美元或以上 天后,公司将重新遵守最低投标要求。

 

我们 股价波动较大,可能会根据我们无法控制的事件和一般行业状况而大幅波动。结果, 您的投资价值可能会大幅下降。

 

的 生物技术行业特别容易受到投资者情绪突然变化的影响。生物技术公司股价 行业,包括我们的行业,可能会发生巨大的变化,与经营业绩关系不大。我们的股价可能会受到影响 受多种因素影响,包括但不限于:

 

全球 政治不稳定、国际贸易关系变化导致的经济不确定性和金融市场波动 以及国际冲突,例如俄罗斯和乌克兰之间的冲突;
产品 发展事件;
的 诉讼结果;
决定 与知识产权有关;
的 有竞争力的产品或技术进入我们的市场;
新 医学发现;
的 建立战略合作伙伴关系和联盟;
变化 与医疗保健行业相关的定价政策或其他实践;或
其他 行业和市场变化或趋势。

 

以来 我们于2000年8月在澳大利亚证券交易所上市,普通股的价格从低点0.002澳元到 最高达每股0.88澳元。由于我们和一般市场无法控制的事件,可能会出现进一步的波动 影响生物技术行业或股市的条件。

 

在 此外,交易量低可能会增加我们的美国存托凭证价格的波动性。交易市场薄弱可能会导致我们的价格 ADS的波动幅度明显大于整个股市。例如,涉及相对较少的交易 与交易量较高的情况相比,美国存托凭证对我们存托凭证的交易价格的影响可能更大。

 

的 事实上,我们预计不支付现金股息可能会导致我们的股票价格下跌。

 

我们 从未对普通股宣布或支付现金股息,并且我们预计在可预见的未来也不会这样做。我们打算 保留未来的现金收益(如果有的话),用于对我们业务的发展和扩张进行再投资。我们是否支付现金股息 未来将由我们的董事会酌情决定,并可能取决于我们的财务状况、运营业绩、 资本要求和我们董事会决定的任何其他相关因素。因此,投资者可能只承认 由于我们的股票价格上涨(不确定且不可预测),投资我们的股票带来的经济收益。那里 并不能保证我们的普通股将升值,甚至维持投资者购买普通股的价格 股

 

你 可能难以送达法律程序并执行针对我们和我们管理层的判决。

 

我们 是一家股份有限公司,在澳大利亚注册和经营2001年《公司法》。我们所有的导演 以及在本年度报告中被点名的官员居住在美国以外。这些人的几乎所有或很大一部分资产 人员也位于美国境外。因此,可能无法影响在美国对此类人员的服务或强制执行, 在外国法院,在美国法院获得的针对这类人的判决,以联邦法院的民事责任条款为依据 此外,我们的几乎所有直接拥有的资产都位于美国以外,因此,任何 在美国获得的对我们不利的判决可能不会在美国国内收集。英联邦的可执行性存在疑问 在最初的诉讼中或在美国法院执行判决的诉讼中,仅以 美国联邦或州证券法,特别是在执行美国法院判决的情况下,被告有 在澳大利亚没有得到适当的服务。

 

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因为 我们不需要向您提供与美国证券发行人相同的信息,您可能无法获得 如果您投资了一家位于美国的上市公司,您将获得的保护或信息相同。

 

我们 不受经修订的1934年证券交易法(通常称为交易法)的某些条款的约束,这些条款 适用于美国上市公司,包括(i)《交易法》要求向SEC提交季度报告的规则 关于表格10-Q的报告和关于表格8-K的当前报告;(ii)《交易法》中规范委托书征集的部分,同意 或对根据《交易法》注册的证券的授权;和(iii)《交易法》中要求内部人士的部分 公开报告其股权和交易活动以及从卖空交易中获利的内部人士的责任 段时间如果您投资了一家美国公司,则可以享受豁免条款。

 

然而, 根据《澳大利亚证券交易所条例》,我们每半年披露一次经审核的财务业绩(在 审查活动国际准则)和我们的年度审计财务结果(根据国际准则 审计)。这些信息可能会对我们在澳大利亚证券交易所的股票价格产生影响,将向 澳大利亚证券交易所和证券交易委员会。与我们公司有关的其他相关信息将 信息披露也符合澳大利亚证券交易所对上市公司的规定和信息发布要求。 我们提供我们的半年度业绩和其他重要信息,我们在澳大利亚以 美国证券交易委员会表格6-K。然而,您可能不会获得与您相同的保护或信息,如果您 投资美国上市公司,因为Form 10-Q和Form 8-k的要求不适用于我们。

 

作为 作为外国私人发行人,我们被允许在不同的公司治理问题上采用某些母国做法 与纳斯达克公司治理上市标准明显不同,这些做法可能为股东提供的保护不如 如果我们完全遵守纳斯达克公司治理上市标准,他们就会享受。

 

作为 作为在纳斯达克上市的外国私人发行人,我们将遵守他们的公司治理上市标准。然而,纳斯达克规则 允许外国私人发行人遵循其母国的公司治理实践。一些公司治理实践 澳大利亚的公司治理上市标准可能与纳斯达克的公司治理上市标准不同。例如,我们可以将非独立董事纳入其中 我们的薪酬委员会成员和独立董事不一定定期举行会议,会议上仅 董事会独立成员出席。目前,我们尽可能遵循祖国的做法。 因此,我们的股东获得的保护可能比公司治理上市标准下的保护要少 适用于美国国内发行人。

 

我们 可能会在未来失去我们的外国私人发行人身份,这可能会导致大量的额外成本和支出。虽然我们目前 作为外国私人发行人的资格,外国私人发行人地位的确定每年在 发行人最近完成的第二财季,因此,我们的下一次确定将在12月31日做出, 2024年。在未来,如果我们不能满足必要的要求来维持我们的 截至相关确定日期的外国私人发行人身份。例如,如果我们50%或更多的证券由美国居民持有 而我们50%以上的高级管理人员或董事是美国居民或公民,我们可能会失去我们的外国私人公司 发行者状态。根据美国证券法,作为美国国内发行人,我们的监管和合规成本可能要高得多 比我们作为外国私人发行人所产生的成本还要高。如果我们不是外国私人发行商,我们将被要求提交定期报告 以及美国国内发行人在美国证券交易委员会的注册声明,这些声明在某些方面比 外国私人发行人可以使用的表格。根据现行的美国证券交易委员会规则,我们将被要求在#年编制财务报表 符合美国公认会计原则而不是国际财务报告准则,并修改我们的某些政策以符合所需的公司治理实践 美国国内发行人的数量。这样将我们的财务报表转换为美国公认会计原则将涉及大量的时间和成本。此外, 我们可能会失去依赖美国证券交易所某些公司治理要求豁免的能力 对外国私人发行人,如上述发行人和豁免与征求有关的程序要求 代理人。

 

作为 由于是一家美国上市公司,我们需要遵守额外的监管合规要求,包括第404条,以及 如果我们未能维持有效的内部控制系统,我们可能无法准确报告我们的财务业绩或防止 诈骗

 

根据 根据第404条,我们的管理层将被要求评估和证明我们对财务报告的内部控制的有效性 关于发布截至2024年6月30日的财政年度的合并财务报表。第404条还 要求由我们的独立注册机构提供关于财务报告内部控制有效性的证明报告 从我们不再是非加速申报人之日起,从我们的年度报告开始。成本 遵守第404条的可能性将显著增加,管理层的注意力可能会从其他业务关注上转移。 这可能会对我们的结果产生不利影响。我们未来可能需要雇佣更多的员工或聘请外部顾问来遵守 这些要求,这将进一步增加开支。如果我们未能在规定的时间范围内遵守第404条的要求, 我们可能会受到包括美国证券交易委员会和纳斯达克在内的监管机构的制裁或调查。此外,如果我们不能 为了证明我们对财务报告的内部控制的有效性,我们可能会失去投资者对财务报告准确性和 我们财务报告的完整性,以及我们普通股和美国存托凭证的市场价格可能会下降。未能实施或维持 对财务报告的有效内部控制也可能限制我们未来进入资本市场的机会,并受制于 我们、我们的董事和我们的高级职员将承担重大的金钱和刑事责任。此外,不断变化的法律、法规和标准 与公司治理和公开披露相关的问题给上市公司带来了不确定性,增加了法律和财务方面的不确定性 合规成本,并使一些活动更加耗时。这些法律、法规和标准有不同的解释, 在许多情况下,由于它们缺乏特殊性,因此,它们在实践中的应用可能会随着时间的推移而演变为新的指导方针 是由监管和管理机构提供的。这可能导致关于合规问题的持续不确定性和更高的成本 由于正在对披露和治理做法进行修订,因此有必要这样做。我们打算投入资源以遵守不断演变的法律, 法规和标准,这种投资可能会导致一般和行政费用的增加,并转移管理层的 从创收活动到合规活动的时间和注意力。如果我们努力遵守新的法律、法规和 由于与标准的应用和实践相关的含糊不清,标准不同于监管机构或理事机构打算开展的活动, 监管机构可能会对我们提起法律诉讼,我们的业务、财务状况、业绩和前景可能会受到不利影响 受影响。

 

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我们 由于作为一家拥有在美国上市交易的美国存托凭证的公司运营,我们的管理层将产生巨额成本 将需要投入大量时间来实施新的合规举措。

 

AS 一家美国存托凭证在美国上市的公司,我们已经并将继续招致重大的法律、会计、 保险费和其他费用。此外,萨班斯-奥克斯利法案、多德-弗兰克华尔街改革和消费者保护法案以及相关 美国证券交易委员会(简称美国证券交易委员会)和纳斯达克实施的规则对公众提出了各种要求 在美国上市的公司,包括要求建立和维持有效的披露和财务控制。 我们的管理层和其他人员将需要投入大量时间来实施这些合规计划,我们将需要 增加更多的人员并建立我们的内部合规基础设施。此外,这些规章制度将增加我们的 这将增加法律和财务合规成本,并将使一些活动更加耗时和昂贵。这些法律法规还可以 使我们更难和更昂贵地吸引和留住合格的人员加入我们的董事会,我们的董事会委员会 或者作为我们的高级管理层。此外,如果我们不能履行我们作为在美国上市的上市公司的义务, 我们可能会受到美国存托凭证退市、罚款、制裁和其他监管行动的影响,还可能面临民事诉讼。

 

的 我们的普通股和美国存托凭证的双重上市可能会对美国存托凭证的流动性和价值产生负面影响。

 

我们 美国存托凭证在纳斯达克上市,我们的普通股在澳大利亚证券交易所上市。我们无法预测这种双重上市对价值的影响 我们的普通股和美国存托凭证。然而,我们的普通股和美国存托凭证的双重上市可能会稀释这些证券的流动性 在一个或两个市场中存在,并可能对美国ADS活跃交易市场的发展产生负面影响。价格 我们在ASX上的普通股交易也可能受到负面影响。

 

澳大利亚 收购法可能会阻止对我们提出收购要约,或者可能会阻止收购我们普通股的重要头寸 股票或美国存托凭证。

 

我们 在澳大利亚注册成立,并受澳大利亚收购法约束。除其他外,我们还受到公司的约束 2001年法案。除一系列例外情况外,《2001年公司法》禁止收购我们的直接或间接权益 如果收购该权益将导致一个人在我们的投票权增加到20%以上,则发行有投票权的股份, 或从20%以上90%以下的起点开始增加。澳大利亚收购法可能会阻止提出收购要约 对我们来说或可能会阻止收购我们普通股的重要头寸。这可能会产生巩固的辅助效果 我们的董事会可能会剥夺或限制我们股东出售其普通股的机会,并可能进一步限制 我们的股东从此类交易中获得溢价的能力。

 

我们 适用于我们的宪法和澳大利亚法律法规可能会对我们采取可能有益的行动的能力产生不利影响 致我们的股东。

 

作为 一家澳大利亚公司,我们与根据美国法律组建的公司遵守不同的公司要求。 我们的宪法以及2001年《公司法》规定了适用于我们作为澳大利亚公司的各种权利和义务 并且可能不适用于美国公司。这些要求的运作可能与许多美国公司的要求不同。你应该 仔细审查我们宪法中规定的这些事项的摘要,该摘要作为本年度报告的附件, 在投资我们的证券之前。

 

一 我们的ADS缺乏大量流动性可能会对您转售我们证券的能力产生负面影响。

 

我们 自2010年6月30日以来,美国存托凭证已在纳斯达克资本市场交易。然而,美国存托凭证的活跃交易市场可能无法维持 在未来如果不维持活跃的交易市场,美国存托凭证的流动性和交易价格可能会受到负面影响。

 

19
 

 

在 在某些情况下,美国存托凭证持有人相对于普通股持有人的权利可能有限。

 

这个 美国存托凭证持有人在普通股投票方面的权利和获得某些分派的权利可能受到限制 在某些方面,由我们和纽约梅隆银行签订的存款协议。例如,尽管美国存托股份持有者 根据存款协议,在澳大利亚法律和我国宪法的任何适用条款的规限下,有权指示 美国存托股份所代表的普通股的投票权的行使,以及 托管人已同意,它将尽可能尝试按照此类指示对如此代表的普通股进行表决, 美国存托股份持有人可能无法及时收到托管人发出的通知,以确保托管人对普通股进行投票。这 这意味着,从实际角度来看,美国存托凭证持有人可能无法行使他们的投票权。此外,在 存款协议,托管银行有权限制对美国存托凭证持有人的分配 进行这样的分配是不切实际的。我们没有义务采取任何行动来允许向我们的美国存托凭证的持有人分发 收据或美国存托凭证。因此,美国存托凭证持有人可能不会收到我们所作的分发。

 

风险 一些涉及税收

 

我们 可能被归类为被动外国投资公司,这可能会导致美国联邦所得税的不利后果 持有人

 

在 一般来说,就美国联邦所得税而言,非美国公司将被视为被动外国投资公司(PFIC), 任何应税年度,其中(1)总收入的75%或以上由被动收入组成(“收入测试”)或(2)50%或 其资产平均季度价值的更多部分归因于产生被动资产或为产生被动资产而持有的资产 收入(“资产测试”)。出于这些测试的目的,被动收入通常包括股息、利息、收益 投资财产以及某些租金和特许权使用费的出售或交换。此外,出于上述计算的目的,非美国人 直接或间接拥有另一家公司至少25%股份的公司将被视为持有另一家公司的股份 按比例分成的资产,并直接收到其按比例分成的该其他公司的收入。

 

基于 根据我们的收入、资产、活动和市值的性质和组成,我们相信我们被归类为PFIC 截至2024年6月30日的应税年度。然而,我们的PFIC地位基于年度确定,该确定取决于多项 不确定性,并且可能会逐年变化。我们的PFIC地位将取决于我们的收入构成(包括尊重 R & D税收抵免)以及我们资产的组成和价值,这在很大程度上可以参考市场来确定 美国存托凭证和我们普通股的价值可能会不时波动。我们的地位可能还部分取决于 我们利用在任何证券发行中筹集的现金。无法保证我们不会被视为PFIC 过去、当前或未来的纳税年度,我们的美国律师对我们的结论或期望不发表任何意见 我们的PFIC状态。

 

如果 在任何课税年度内,美国持有者(如第10.E.项附加信息-税收, 美国联邦所得税“)持有美国存托凭证或普通股,则美国持有者可能要承担不利的税收后果 无论我们是否继续符合PFIC的资格,包括不符合资本利得税或实际利得税的任何优惠税率 或被视为股息、某些被视为递延的税项的利息费用,以及额外的报告要求。我们将继续 在美国持有者拥有美国存托凭证或普通美国存托凭证的所有后续年度内,就该美国持有者而言,被视为PFIC 股票,无论我们是否继续符合上述收入或资产测试,除非美国持有者做出有效的和 适时合格选举基金(QEF)或按市值计价的选举,或在我们不再是PFIC时进行视为出售的选择;然而, 我们目前不打算提供美国持有人参加优质教育基金选举所需的信息。以进一步讨论 在我们被归类为PFIC的情况下,PFIC规则和美国联邦所得税对美国持有者的不利后果,请参阅“项目 10.附加信息--税收,美国联邦所得税--被动外国投资公司规则。

 

如果 美国人被视为拥有至少10%的普通股,该持有人可能会受到不利的美国联邦收入的影响 税收后果。

 

如果 美国持有者(如标题为“项目10.E.附加信息-税收,美国联邦收入”一节所定义 税收“)被视为(直接、间接或建设性地)拥有我们普通人价值或投票权的至少10% 股票或美国存托凭证,这样的美国持有者可能被视为美国联邦所得税的“美国股东”。 尊重我们集团中的每一家“受控外国公司”(如果有的话)。因为我们的集团包括一家美国子公司(genType Inc.,以前命名为Phenogen Sciences Inc.),我们目前和未来的某些非美国子公司将被视为受控 外国公司,无论我们是否被视为受控制的外国公司。一家控股公司的美国股东 外国公司可能被要求每年报告其在美国的应纳税所得额,并在其美国应纳税所得额中按比例计入F分部 收入“、”全球无形低税收入“和受控制的外国公司对美国房地产的投资, 不管我们是否进行任何分发。相对于受控制的外国公司而言,是美国股东的个人 公司一般不会被允许对美国股东进行某些税收减免或外国税收抵免 那是一家美国公司。我们不能保证我们将向任何美国股东提供可能 有必要遵守上述报告和付款义务。不遵守该等义务可能会受到 一名美国股东被处以重大罚款,并开始对相关的诉讼时效期限进行拖延 美国联邦所得税申报单。美国持有者应咨询他们的税务顾问,了解这些规则可能适用于 他们对普通股或美国存托凭证的投资。

 

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变化 税法可能会对我们的公司产生重大不利影响,并减少我们股东的净回报。

 

我们的 税收待遇取决于税收法律、法规和条约的制定或变更,或对税收政策的解释 正在考虑的举措和改革以及我们开展业务的司法管辖区税务当局的做法,包括 与经济合作与发展组织的基础侵蚀和利润转移项目有关,欧洲 委员会的国家援助调查和其他倡议。这种变化可以包括(但不限于)对 营业收入、投资收入、收到的股息或(在特定的预扣税情况下)支付的股息。我们不能 预测未来可能提出或实施的税制改革,或这些改变将对我们的业务产生什么影响,但 税务法例、法规、政策或惯例所涉及的改变,可能会影响我们的财政状况。 以及在我们有业务的国家未来的总体或有效税率,减少我们股东的税后回报, 增加了纳税遵从的复杂性、负担和成本。

 

税 当局可能不同意我们关于某些税收立场的立场和结论,从而导致意外成本、税收 或未实现预期利益。

 

一个 税务机关可能不同意我们所持的税收立场,这可能会导致税收负担增加。例如,美国。 国税局或其他税务机关可能会质疑我们根据税收管辖权分配的收入以及在 我们的关联公司根据我们的公司间安排和转移定价政策,包括以下方面支付的金额 为我们的知识产权发展做出贡献。同样,税务机关可以断言,我们在以下司法管辖区应纳税 我们认为我们还没有建立一种应税联系,通常被称为国际贸易中的“常设机构”。 税收条约,这样的主张,如果成功,可能会增加我们在一个或多个司法管辖区的预期纳税义务。税务机关 可能采取由我们支付实质性所得税债务、利息和罚款的立场,在这种情况下,我们预计我们 可能会对这种评估提出异议。对这种评估提出异议可能会耗时很长,成本也很高,如果我们对评估提出异议不成功, 在适用的情况下,这些影响可能会提高我们预期的实际税率。

 

项目 4.公司信息

 

项目 4.公司的历史与发展

 

原本 根据西澳大利亚州法律于1987年1月5日注册成立,名称为Concord Mining N.L.该公司作为一家矿业公司运营。 1991年8月13日,该公司更名为Consolidated Victoria Gold Mines N.L. 1991年12月2日,公司变更了 维多利亚联合矿业公司(Consolidated Victorian Mines N.L.)的名称1995年3月15日,公司更名为Duketon Goldfields NV

 

对 1999年10月15日,公司法人地位由无责任公司变更为股份有限公司。八月 2000年29日,收购瑞士公司GeneType AG后,该公司更名为Genetic Technologies Limited, 是它现在的名字。当时,采矿活动被逐步淘汰,专注于成为一家生物技术公司,随后 其证券交易所上市权已从ASX的矿业板正式转移到工业板,此后其股票 被归类为“健康与生物技术”行业公司,完成从矿业公司转型为“健康与生物技术” 一家生物技术公司。该公司目前的生物技术活动主要集中在一个明确定义的领域 第4.b项“业务概述”中涵盖的活动。

 

在 2009年10月,制定了一个新的战略方向,集中精力创建旨在协助 从事癌症管理的医学临床医生。这将包括由公司创建并从第三方获得许可的测试 然后由我们在亚太地区进行营销。

 

对 2010年4月14日,公司宣布从Perlegen Sciences,Inc.收购了部分资产。位于加利福尼亚州,拥有主要资产 即BREVAGen™乳腺癌风险评估测试(“BREVAGen™”)。2010年6月28日,公司注册成立 一家名为Phenogen Sciences Inc的全资子公司,更名为geneType Inc。2022年4月4日,特拉华州 该公司于2011年6月开始在美国市场销售BREVAGen™测试。2014年10月,该公司发布了下一款 一代乳腺癌风险评估测试BREVAGen再加上。

 

对 2014年11月19日,该公司完成将其Heritage Australian Genetics业务出售给Specialist Diagnostics Services Ltd (SDS)Primary Health Care Ltd的全资病理子公司。

 

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在 2016年11月,该公司与墨尔本大学签署了全球独家许可协议,用于开发和 新型结直肠癌(CRC)风险评估测试的商业化,为公司提供了增强其管道的机会 风险评估产品。此外,2017年6月,该公司与The签署了一项研究员发起的研究协议 俄亥俄州立大学,反映出人们对该公司在基于SNP的风险评估方面的专业知识的认识不断增强。

 

期间 2018年,该公司与墨尔本大学签署了进一步的合作研究和服务协议,以进行研究 旨在扩大BREVAGen的适用性另外, 使具有长期乳腺癌家族史的女性能够使用它 以及增加评估乳腺癌时分析的因素范围。

 

在 2019年5月,该公司宣布开发两种新的癌症风险评估测试,名为“大肠癌GeneType” 和“乳腺癌基因类型”。新的乳腺癌测试比其遗留的乳腺癌提供了实质性改善 测试Brevagen,通过纳入多种额外的临床风险因素。这项测试将为医疗保健提供者和 对患者患乳腺癌的5年和终生风险评估。结直肠癌测试将提供 医疗保健提供者及其患者对患结直肠癌的患者进行5年、10年和终生的风险评估。

 

在 2020年6月,公司获得美国专利号:US 10,683,549,评估乳腺癌风险的方法。本公司是 世界上第一家成功商业化乳腺癌多基因风险测试的公司。授予的专利涵盖公司的 专有的单核苷酸多态性(SNP)小组以及临床和表型风险模型的组合,以创建 市场上最全面的风险评估工具:乳腺癌GeneType。

 

的 公司聘请并培训了一名新的内部销售员工,向医生传授公司的多基因风险评分(PR)测试, 向他们介绍预防性健康策略。公司得到了医生的积极回应。初步测试结果显示 10%的受试者为高风险,41%为中度风险。该公司相信这些结果将有助于创建个性化的 专门为患者风险概况设计的策略。我们认为早期迹象表明测试可以提高筛查合规性 以及个性化筛查解决方案的开发。这证实了公司专注于预防性健康的目标 而不是“事后”的药物。

 

在 与此同时,该公司继续完善现有的并开发一系列疾病的其他风险评估测试,包括:

 

乳腺 癌
结直肠 癌
卵巢 癌
前列 癌
冠状 动脉疾病
类型 2糖尿病
胰腺 癌
黑色素瘤
心房 颤动

 

的 该公司已于2022年开发了针对COVID-19的多基因风险评分(PPA)测试,该测试可能能够评估人们的发展风险 如果他们感染病毒,那将是一种严重的疾病。该测试旨在结合遗传和临床预测疾病严重程度 信息.该公司与包括英国生物银行在内的国际生物银行和健康研究建立了牢固的关系。它们允许 我们将确保额外的当前COVID-19患者数据,以不断开发、完善和验证COVID-19风险测试。

 

的 公司的单核苷酸多态性(SNP)阵列面板由美国赛默飞世科技公司提供,世界领先 基因检测和公司geneType产品的制造合作伙伴。SNP阵列面板是该公司的关键试剂 需要处理COVID-19风险测试的多基因风险测试部分。该测试旨在将受试者分类为高、中等、 或因COVID-19而出现危及生命的疾病的风险较低。

 

的 公司向澳大利亚工业创新部的机构IP澳大利亚提交了COVID-19风险测试临时专利申请 与科学(澳大利亚知识产权)(2020901739 -评估对冠状病毒产生严重反应的风险的方法 感染)。该临时专利涵盖了该公司设计用于计算的特定单核苷酸多态性(SNP)算法 一个PPA和结合了PPA和临床风险因素的测试模型,这些因素共同构成了COVID-19风险测试。随后 该专利已在美国获得授予,并正在等待其他几个关键市场的授予。

 

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的 公司于7月19日签署收购协议(“收购协议”)这是、2021年收购直接- 与General Genetics Corporation及其相关品牌相关的消费者电子商务业务和分销权,以交易身份 EasyDNA,来自BelHealth Investment Fund LP。收购协议规定收购所有品牌、网站和代理机构 删除与EasyDNA相关的协议。其中包括40个国家/地区的70多个网站和6个品牌标识。规定 根据收购协议,公司收购了EasyDNA在General Genetics Corporation内100%的品牌和资产 收购价格为400万美元,包括250万美元的现金对价和150万美元的ADS。

 

的 公司于2022年7月14日签署资产购买协议(“APA”),收购直接面向消费者的电子商务业务, 与AffinityDNA相关的实验室测试和分销协议。APA规定收购所有品牌和网站 与AffinityDNA相关。这包括AffinityDNA亚马逊销售渠道权利。根据APA的条款,公司收购了 AffinityDNA 100%的品牌和资产,收购价为555,000英镑,其中包括完成后227,500英镑的现金对价 并于2023年7月支付227,500英镑,前提是AffinityDNA业务达到某些财务绩效参数。第二 自收购日期起12个月内实现毛利润目标后支付付款。这个目标不是 已实现,因此无需就收购AffinityDNA进行进一步付款。

 

对 2023年2月3日,GTG宣布推出首个乳腺癌和卵巢癌综合风险测试。该测试评估a 女性因遗传性基因突变或更常见的家族性突变而患乳腺癌和/或卵巢癌的风险 或散发性癌症。结合其他临床风险因素,该测试在简单唾液中提供了全面的风险评估 test.

 

对 2024年7月26日公司宣布正在重组其运营模式,以大幅减少持续运营 损失和现金流出。作为重组的一部分,公司将过渡到轻资本运营模式,在这种模式下 研发和新产品开发、知识产权创建、实验室测试以及引入预测性基因检测等活动 以前在内部进行的产品将以各种方式停止、外包和/或通过合作进行。去 未来该公司的重点将是增加EasyDNA和AffinityDNA业务的收入,以及geneType的商业化 通过战略合作伙伴关系在美国。

 

SEC 维护一个包含报告、代理和信息声明以及有关提交文件的发行人的其他信息的互联网网站 以电子方式与SEC联系并注明该网站的地址(http:www.sec.gov)。公司网站地址为https:// genetype.com.我们网站上包含的信息不会以引用的方式纳入本20-F表格的年度报告中。

 

企业 信息

 

的 公司的注册办事处、总部和实验室位于60-66 Hanover Street,Fitzroy,Victoria,3065,Australia 电话号码为+61 3 8412 7000。其美国子公司geneType Inc.的办公室(原名Phenogen Sciences Inc.),位于 地址:1300 Baxter Street,Suite 255,Charlotte,North Carolina,28204美国geneType Inc.的电话号码办公室是(704) 926 5700。该公司的网站地址为www.genetype.com。其网站中的信息并未以引用的方式纳入 本年度报告,不应视为本年度报告的一部分。

 

的 公司的澳大利亚公司编号(ACN)是009 212 328。该公司的澳大利亚业务号码(ABN)是17 009 212 328。 该公司根据其章程、澳大利亚 2001年《公司法》、澳大利亚证券上市规则 交易所、纳斯达克股票市场的市场规则,以及(如适用)国家的地方、州和联邦立法 公司运营的地方。

 

项目 4.b业务概览业务描述

 

成立 1989年,基因技术公司于2000年在ASX(GTG)上市其普通股,并在纳斯达克资本市场(GENE)上市其美国存托凭证 2005年遗传技术公司是一家分子诊断公司,提供预测测试和评估工具来帮助医生 主动管理人们的健康。该公司的遗留产品BREVAGen,是经过临床验证的风险评估 非遗传性乳腺癌检测,在同类产品中名列前茅。布雷瓦根 在第一个的预测能力的基础上有所提高 一代BREVAGen™测试,旨在促进有关乳腺癌筛查和预防的更明智决策 治疗计划。布雷瓦根将BREVAGen™的应用范围扩大到非裔美国人和 西班牙裔,针对的是35岁或以上未患乳腺癌且有一个或多个风险因素的女性 患上乳腺癌。

 

的 公司通过其美国子公司Phenogen Sciences Inc.在美国成功推出第一代BREVAGen™测试 (now geneType Inc.)、和布雷瓦根于2014年10月推出。该公司销售BREVAGen与医疗专业人士能够 在综合乳房保健和成像中心,以及产科医生/妇科医生(ObGYN)和乳腺癌风险评估 专家(例如乳房外科医生)。

 

在 2019年5月,该公司宣布开发了两种新的癌症风险评估测试,名为“geneType for Colorectal” 癌症”和“乳腺癌基因类型”。新的乳腺癌检测比公司的检测有了重大改进 传统乳腺癌检测BreVAGen,通过纳入多种额外的临床风险因素。这项测试将提供医疗保健 医疗服务提供者及其患者对患乳腺癌的患者进行5年和终生的风险评估。所述结肠直肠癌 该测试将为医疗保健提供者及其患者提供患结直肠癌的5年、10年和终生风险评估 癌

 

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在 2020年6月,公司获得美国专利号:US 10,683,549,评估乳腺癌风险的方法。本公司是 世界上第一家成功商业化乳腺癌多基因风险测试的公司。授予的专利涵盖公司的 专有的单核苷酸多态性(SNP)小组以及临床和表型风险模型的组合,以创建 市场上最全面的风险评估工具:乳腺癌geneType。

 

在 2022年2月公司获得美国专利号:US 11,257,569,评估对冠状病毒产生严重反应的风险的方法 感染已授予的美国专利涵盖了GTG geneType COVID- 19风险测试中纳入的专有技术,该测试 提供了一个人如果被感染就会出现需要住院的严重症状的可能性。

 

期间 2024财年,该公司继续完善现有的并开发一系列疾病的风险评估测试, 包括:

 

乳腺 癌
结直肠 癌
卵巢 癌
前列 癌
冠状 动脉疾病
类型 2糖尿病
胰腺 癌
黑色素瘤
心房 颤动

 

的 公司的基因检测业务

 

以下 1999年收购Genetype AG,随后更名为Genetic Technologies Limited,该公司专注于建立 一家基因检测企业,在接下来的十年里成为最大的亲子鉴定和相关检测服务提供商 在澳大利亚该公司位于墨尔本的服务检测实验室成为领先的非政府基因检测服务提供商 在澳大利亚该公司的基因检测服务扩展到某些时候包括:

 

医疗 测试
动物 测试
法医 测试
植物 测试

 

的 收购GeneType AG还为该公司提供了潜在重要已发布专利组合的所有权。 在此后的几年里,这一投资组合通过有机增长和知识产权收购得到了扩大 来自第三方的资产。不断审查专利组合,以确保公司保留潜在重要的专利 但与此同时,通过不再追求商业吸引力较低的相关知识产权来将成本保持在最低限度。

 

一 与Myriad Genetics Inc.的战略联盟授予公司在澳大利亚和新西兰进行DNA检测的独家权利 对一系列癌症的易感性。2003年4月,该公司在其内部建立了癌症易感性检测设施 澳大利亚实验室。2003年6月,该设施获得了全国测试机构协会的临时认证, 澳大利亚(“NATA”)。

 

在 2003年11月,公司加入全球基因检测网络GENDIA,成为该网络在澳大利亚的唯一参考实验室 和新西兰GENDIA由来自世界各地的50多个实验室组成,每个实验室都在各自领域贡献专业知识 学科创建一个能够提供2,000多种不同基因测试的网络。这为公司提供了能力 为亚太地区的客户群提供全面的测试服务,并增加对其他市场的影响。

 

在 2010年4月公司从Perlegen Sciences,Inc.购买了各种资产加利福尼亚州山景城,其中包括乳腺癌 非家族风险评估测试,BREVAGen™。该公司随后开始在澳大利亚实验室验证测试并启动 获得CLIA认证的流程,使公司能够对从美国收到的样本进行测试 市场到2010年7月,一家名为Phenogen Sciences Inc的新美国子公司(现更名为geneType Inc.),已由公司注册成立 在特拉华州销售并分销BREVAGen™测试。

 

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在 2014年10月,公司宣布在美国发行BREVAGen,一个易于使用的预测风险测试,可供数百万人使用 女性面临患上散发性或非遗传性乳腺癌的风险,这代表了准确性和更广泛的患者人数的显着提高 适用性优于其第一代BREVAGen™产品。该公司还对销售和营销重点进行了重大改变 转向大型综合乳房治疗和成像中心,这些中心是更复杂的实体,销售周期更长,但更高 潜力

 

基因型 乳腺癌;最先进的 乳腺癌风险评估测试旨在实现更个性化的乳腺癌 对更多女性进行风险评估

 

这个 2007年,发现了一些单核苷酸多态(SNPs),每个SNPs都与乳腺癌的相关相对风险较小 BREVAGen™是第一个可商业化的散发性乳腺癌基因风险检测方法。这个 该公司于2011年6月在美国推出了这款产品。2014年10月,该公司发布了新一代乳腺癌风险评估 测试,BREVAGen。这个新版本的测试包含了一个扩大了10倍的遗传标记(SNPs)小组,众所周知 与散发性乳腺癌的发展有关,与第一代乳腺癌相比,提供了更强的预测力 前身测试。此外,新的测试在更广泛的女性人群中得到了临床验证,其中包括非裔美国人和 西班牙裔女性。这增加了适用市场,超越了高加索人第一代测试的唯一适应症,并简化了 在美国的医疗诊所和乳房健康中心的营销流程

 

的 从多项大规模全基因组关联研究中确定了纳入我们乳腺癌检测的扩展SNP组 随后在病例对照研究中使用特定的白人、非裔美国人和西班牙裔患者样本进行了测试。

 

BREVAGen加上 是一种针对散发性乳腺癌的一流、经过临床验证的预测风险测试,检查了女性的临床表现 风险因素与77种经过科学验证的遗传生物标志物(SNP)相结合,可以实现更个性化的乳腺癌 风险评估和风险管理。

 

在 2019年5月,该公司宣布开发下一代乳腺癌风险评估测试“GeneType for Breast 癌症'。新的乳腺癌测试比其传统的乳腺癌测试提供了实质性改进BREVAGen通过 纳入多种额外的临床风险因素。该测试将为医疗保健提供者及其患者提供5年的 以及对患乳腺癌的患者进行终生风险评估。

 

种系 BRCA 1和BRCA 2突变的基因测试可以识别乳腺风险显着增加的个体 和其他癌症。然而,此类突变在普通人群中相对罕见,占所有乳房的不到10% 癌症病例。其余90%的非家族性或散发性乳腺癌必须通过其他常见的遗传/临床标志物来定义 对广大民众来说,这也是公司关注的焦点。

 

的 新开发的“乳腺癌基因类型”测试旨在检测非BRCA相关散发性乳腺癌(即 适用于那些没有确定乳腺癌家族史的女性)。重要的是,这意味着该公司的 新测试覆盖了95%的女性。

 

在 2020年6月,公司获得美国专利号US 10,683,549“开发风险评估方法”的批准 乳腺癌。”授予的专利涵盖该公司专有的单核苷酸多态性(SNP)和 临床和表型风险模型的结合,创建市场上最全面的风险评估工具:geneType 治疗乳腺癌。

 

对 2024年4月11日该公司宣布将与纽约各地的乳房成像中心建立一项临床实施研究, 迈阿密和休斯顿。该计划将试点将geneType测试集成到乳房成像中心,协助精简 目前分散的护理。

 

基因型 结直肠;最先进的 结直肠癌风险评估测试

 

下 世代风险评估结合多种临床和遗传风险因素,以更好地对发展风险增加的个体进行分层 疾病“结直肠癌基因类型”包含了最有影响力的风险因素,以定义个人的 患结直肠癌的风险,因此医疗保健提供者可以制定量身定制的筛查和预防护理建议 其患者的个性化风险。

 

结直肠 癌症是美国第三常见诊断的癌症,然而,三分之一的成年人没有接受适当的结直肠癌 筛查他们的年龄。此外,20-49岁人群的结直肠癌发病率正在稳步上升。识别那些 结直肠癌风险最高的人可以增强筛查方案并获得更好的结果。大多数被诊断患有 结直肠癌没有明显的家族病史。“结直肠癌基因类型”评估 30岁以上且不具有已知致病基因变异的男性和女性患结直肠癌的基因组风险。

 

在 散发性结直肠癌,没有单一基因突变是疾病的原因。相反,常见的DNA变异或SNP,每个都贡献了一小部分 但患上疾病的风险可测量。“结直肠癌基因类型”分析患者的DNA超过 40种SNP与结直肠癌的关联已得到临床验证。通过结合所有这些SNP的影响 将“结直肠癌基因类型”纳入单个多基因风险评分(PPA)中,将提供优于 仅纳入临床因素的标准风险评估

 

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'基因类型 针对30岁或以上的男性和女性以及高加索血统的个人进行了临床验证。 .该公司打算在不断改进测试并为其他种族添加经过充分验证的模型时提供更新。

 

商业 启动geneType多风险测试

 

的 继公司网站、营销和广告重新开发后,geneType品牌于2021年10月在全球重新推出, 向ASX和NASDAQ发布媒体和公告。2022年2月商业推出的geneType多风险测试包括 第一阶段启动涵盖乳腺癌、结直肠癌、前列腺癌和卵巢癌等六种严重疾病的风险评估, 冠状动脉疾病和2型糖尿病覆盖了所有严重疾病的50%以上,全部集中在一个测试样本中。基因类型多重测试 分别在澳大利亚和美国同时获得NATA认证和CMS认证。geneType多重测试的第一阶段 于2022年2月向医疗保健专业人员(HCP)开放。

 

在 2023年3月公司宣布geneType多风险测试已扩大至包括三种新疾病:黑色素瘤、胰腺癌 癌症和心房颤动,使测试涵盖的疾病总数达到九种。医疗保险和医疗补助中心 (CMS 3月份批准了针对美国客户的测试起诉,随后又批准了针对澳大利亚市场的测试 2023年9月由全国测试机构协会(NATA)发起。

 

在 2024年3月,公司宣布开发公司最先进的严重疾病风险评估测试、建筑 关于综合遗传性乳腺癌和卵巢癌测试(HBOC)测试的成功。根据我们丰富的行业经验和专业知识,我们不知道有任何其他组织能够 提供一种包括检测所指出的基因并包括我们测试的PPA和临床因素的测试,使这项最新创新将成为世界首创; 包括200多个高渗透基因,以解开与最常见的遗传性疾病相关的当前多重测试的遗传性疾病风险 癌症、心血管疾病和2型糖尿病。这项突破性的创新使医生能够识别近100%的人 如果疾病超出家族病史,就会面临风险。

 

世界 首次针对乳腺癌和卵巢癌进行全面风险测试

 

在 2023年2月该公司宣布开发“世界首创”综合风险评估测试,该测试评估 女性患乳腺癌和/或卵巢癌的风险要么来自遗传性基因突变,要么来自更常见的突变 家族性或散发性癌症。结合其他临床风险因素,该测试以简单的方式提供了全面的风险评估 唾液测试。

 

的 公司打算在不断改进测试并为其他种族添加完全验证的模型时提供更新。

 

直接面向消费者 生活方式基因检测渠道

 

的 公司于2021年8月收购了EasyDNA,为我们提供了直接面向消费者的生活方式销售和分销渠道 基因测试。客户无需咨询医疗保健专业人士即可完成EasyDNA品牌的测试。的 EasyDNA基因测试的实验室测试由美国、欧洲和澳大利亚的签约实验室进行。EasyDNA客户 使用我们覆盖40个国家/地区的网站网络在线订购他们的测试。

 

在 2022年5月,公司宣布收购AffinityDNA,并在根据《金融时报》第一笔付款到期后开始整合业务 收购协议于2022年7月14日达成。AffinityDNA加入EasyDNA,成为该公司的直接面向消费者(DTC)渠道 进入市场进行DNA检测。在本财年的上半年,我们专注于人员、产品的整合 和AffinityDNA平台,为GTG提供“一家公司-多品牌和多渠道”的方法- EasyDNA、AffinityDNA 和geneType。此次收购将GTG的测试产品组合扩大到14个类别中的51种,遍布40多个国家。

 

进一步 随着公司利用其成熟的全球市场(包括亚马逊),整合将继续下去。这个市场将 还可用于提供推广公司geneType产品组合的途径。

 

在 2023年11月,该公司宣布计划在英国推出其三个品牌EasyDNA、AffinityDNA和geneType (英国)2024年4月开始药房渠道。英国国家药房协会正在推动一项实现家庭检测的举措 药房与全科实践。

 

的 公司拥有强大的“全生命”产品组合,包括市场上和正在开发的高质量产品,以及大量 直接面向消费者产品分销的国际平台。

 

新 精确肿瘤学测试

 

在 2024年4月,该公司宣布成立精准肿瘤学部门和一系列新的诊断测试产品组合 geneType精准肿瘤学品牌。这些测试将为医学肿瘤学家提供信息,帮助确定哪些疗法可以 对治疗一系列癌症具有最有效的影响。此前,2023年9月宣布与 黄金海岸私立医院将利用GTG基因型多测试评估和药物基因组学进行精准医学试点研究 (Gx)试验.

 

政府 条例

 

CLIA 和FDA法规

 

在 2011年4月,公司根据美国临床实验室改进修正案获得了澳大利亚实验室的认证 1988年(“CLIA”),由医疗保险和医疗补助中心监管。该认证使公司能够接受 以及来自美国居民的测试样本,这是该公司在美国推出BREVAGen™所需准备工作的高潮 测试于2011年6月进行。

 

在 2013年7月,该公司接受了纽约州卫生部临床实验室评估项目代表的检查 (“CREP”)。公司实验室收到检查结果,未报告任何缺陷,并于2013年8月30日, 该公司宣布已收到纽约州卫生部颁发的临床实验室许可证。这个许可证, 这允许公司向纽约州居民提供风险评估测试,并允许公司提供测试服务 美国所有50个州。

 

从 该公司的实验室总部位于维多利亚州墨尔本,拥有多项认证,包括:

 

的 所有在美国提供检测的实验室都需要CLIA许可证;
的 CREP许可证,在纽约州提供测试所需的额外认证;以及
一 加拿大需要医疗器械企业许可证(MMEL)。

 

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医生 为患者订购临床测试的人历来是其测试量的主要来源。费用发票至 患者和第三方基于其费用表,该费用表可能受到第三方付款人施加的限制。临床 实验室行业受到严格监管,并受到重要且不断变化的联邦和州法律法规的约束。这些法律和 法规影响公司业务的关键方面,包括许可证和运营、实验室的计费和付款 服务、与订购医生的销售和营销互动、健康信息的安全性和保密性以及环境 和职业安全。政府官员的监督包括定期检查和审计。公司寻求并相信 其开展业务符合所有适用法律和法规。

 

CLIA, 将联邦许可要求扩大到所有临床实验室(无论实验室的地点、规模或类型如何),包括 这些由医生在办公室操作,具体取决于他们所执行测试的复杂性。CLIA还制定了严格的熟练程度 实验室的测试计划,包括实质性制裁,例如暂停、撤销或限制实验室 CLIA证书(开展业务所需),以及巨额罚款和/或刑事处罚。

 

的 对所提供样本的基因类型测试在其位于澳大利亚墨尔本的实验室进行。公司实验室建成 根据CLIA指南进行了首次CLIA检查,并收到了2011年11月17日生效的合规证书。重新认证 来自CMS,即,2013年11月进行了纸质调查,并于2016年2月进行了另一次现场重新认证。纸 2017年11月和2019年12月还进行了调查。此外,该公司的实验室完成了第一个CREP 根据纽约州卫生部CREP指南进行检查,并收到了2013年8月30日生效的合规证书。由于初始 调查显示,该实验室在随后的每一年都成功通过纽约州eCREP健康商务系统提交文件 迄今尽管尚未提供确切日期,但实验室预计将在未来12个月内进行现场访问。

 

的 公司相信其符合所有适用的联邦和州实验室要求。根据CLIA,公司仍然 遵守州和当地实验室法规。CLIA规定州可以采用更严格的实验室法规 比联邦法律规定的要求高,一些州要求额外的人员资格、质量控制、记录维护和其他 要求.

 

以下 年内,该公司通过成功的CLIA审计,更新了其作为完全NATA和CLIA认证实验室的地位。公司 处于独特的地位,可以为澳大利亚和美国市场提供服务,但须获得监管机构批准。

 

虽然 美国食品和药物管理局(FDA)一直声称,它有权监管实验室开发的 仅由CLIA认证的实验室开发、验证和执行的测试(LDT),历史上一直是这样 执法自由裁量权,不以其他方式监管大多数LDT,并未要求提供LDT的实验室遵守该机构的 对医疗器械的要求(例如,机构注册、器械上市、质量体系法规、上市前许可 或上市前批准和上市后控制)。作为一项政策,FDA通常不会审查直接面向消费者的LDT 如果只在医疗保健提供者开出处方的情况下才向患者提供,则在单个实验室创建和执行。更多 最近,FDA表示,它将采用基于风险的方法来确定所有体外诊断的监管途径, 这包括LDT,就像它对所有医疗设备所做的那样。因此,公司LDT的监管路径将取决于 根据LDT的预期用途和提供合理保证所需的控制措施,对患者的风险水平进行评估 LDTS的安全性和有效性。医疗器械的两种主要营销途径是批准上市前通知 根据联邦食品、药物和化妆品法案第510(K)条,或510(K)条,以及对上市前批准申请或PMA的批准。 关于FDA对LDT的监督的立法提案已经在本届和前几届国会中提出,我们 预计新的立法提案将不时出台。国会通过这样的立法和 这种立法可能会在多大程度上影响FDA将某些LDT作为医疗器械进行监管的计划,目前还很难预测 在这个时候。

 

HIPAA 和其他隐私法

 

这个 1996年的《健康保险可携带性和责任法案》(HIPAA),为 健康信息的隐私和安全。HIPAA标准适用于三种类型的组织:健康计划、医疗保健结算 房屋,以及以电子方式进行某些医疗交易的医疗保健提供者(“涵盖实体”)。标题 HIPAA的第二部,即《行政简化法》,包含了涉及健康数据隐私、健康安全的条款 数据、医疗保健系统中使用的识别号码的标准化以及某些医疗保健交易的标准化。 隐私法规通过限制医疗记录和其他受保护的健康信息的使用和发布来保护它们,为患者提供 有权获取他们的医疗记录,并将大多数健康信息的披露限制在完成以下任务所需的最低限度 一个预定的目的。HIPAA安全标准要求采用管理、物理和技术保障措施,并且 采用书面安全政策和程序。

 

对 2009年2月17日,国会颁布了《经济和临床健康健康信息技术法案》(HITECH)的副标题D, 2009年《美国复苏和再投资法案》的条款。HITECH扩大和加强HIPAA,制定了新的执法目标, 对不合规行为实施新的处罚,并对所涵盖实体制定新的违规通知要求。执行条例 HITECH的主要条款于2013年1月25日通过发布HIPAA综合规则(“综合规则”)最终确定。

 

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下 HITECH的违规通知要求,受保护实体必须报告未被保护的健康信息的违规行为 根据美国卫生与公众服务部部长的指导进行加密或以其他方式保护 “秘书”)。所需的违约通知必须在合理可行的范围内尽快发出,但不得迟于发布后60天 发现漏洞。必须向受影响的个人和部长提交报告,在某些情况下取决于规模 违规行为;必须通过当地和国家媒体报道。违规报告可能会导致调查、执行和民事诉讼, 包括集体诉讼。

 

在……里面 除了联邦隐私和安全法规外,还有许多关于健康隐私和安全的州法律。 适用于临床实验室的信息和个人数据。许多州也实施了基因检测和隐私保护。 法律规定了具体的患者同意要求,并通过严格限制这些结果的披露来保护测试结果。 国家对预测性基因测试的要求特别严格,因为存在对健康的基因歧视的风险 通过检测被确定为疾病高危人群的患者。该公司认为,它已经采取了必要的步骤来 遵守健康信息隐私和安全法规,包括基因检测和基因信息隐私 所有司法管辖区的法律,包括州和联邦法律。然而,这些法律不断变化,公司可能无法维持 在其开展业务的所有司法管辖区遵守。未能保持合规性,或州或联邦法律发生变化 隐私或安全可能导致民事和/或刑事处罚、严重的声誉损害,并可能产生实质性的不利影响 对公司业务的影响。

 

透明度 法律法规

 

在……里面 美国,《医生支付阳光法案》(简称《阳光法案》)要求医疗器械制造商跟踪和报告 向联邦政府支付向医生、其他医疗保健提供者(如医生)支付的某些款项和其他价值转移 助理和护士从业人员)和教学医院以及医生及其直系亲属持有的所有权或投资权益 家庭成员。还有州的“阳光”法律,要求制造商向州政府提交关于 定价和营销信息。几个州已经制定了立法,要求医疗器械制造商除其他外, 建立营销合规计划,定期向州政府提交报告,定期公开销售和营销情况 这些法律还可能禁止或限制某些其他销售和营销行为。这些法律可能会对我们的 销售、市场营销和其他活动,将行政和合规负担强加给我们。如果公司没有跟踪和报告 根据这些法律的要求或以其他方式遵守这些法律,它可能受到有关州的处罚条款的约束。 以及联邦当局。

 

其他 医疗保健合规要求。

 

我们 在美国的业务可能会使我们受到美国联邦政府及其所在州的医疗保健监管和执法 我们开展业务,包括联邦欺诈和滥用法(例如反回扣和虚假索赔法以及透明度法)。 不遵守此类法律可能会导致重大处罚,包括民事、行政和刑事处罚、罚款, 监禁、驱逐、禁止参与联邦医疗保健计划和其他处罚

 

环境 和安全法律法规

 

这个 公司必须遵守有关保护环境、员工健康和安全以及搬运的法律法规, 运输和处置医学标本、传染性和危险废物以及放射性材料。例如,美国职业局 安全与健康管理局(“OSHA”)制定了广泛的要求,特别是与工作场所安全有关 对于美国的医疗保健雇主来说,这包括要求开发和实施多方面的计划,以保护工人免受 接触血液传播的病原体,包括防止或最大限度地减少针头刺伤造成的任何接触。出于运输的目的, 一些生物材料和实验室用品被归类为危险材料,并受到一个或多个 以下机构之一:美国交通部、美国公共卫生服务、美国邮政服务和国际 航空运输协会。该公司通常使用第三方供应商来处置受管制的医疗废物、危险废物和 放射性材料,并在合同上要求它们遵守适用的法律和条例。

 

的 公司的运营还遵守澳大利亚州立法的环境法规。特别是公司 须符合 1993年环境保护法.已根据该法获得生产所列产品的许可证 浪费

 

在 2023年9月,该公司宣布将开始其环境、社会和治理(ESG)报告,以发展 一份基线报告,涉及世界经济论坛(WEF)在其标准化和全球公认的利益相关者中设定的21个核心指标 资本主义定义ESG框架。这是公司ESG报告发展的第一步,其中包括季度审查 基线报告的内容,随着我们经验的增长,还会进行改进。

 

产品 分布

 

尽管 专业销售团队的大量资源分配和努力,BreVAGen的销售不足以支付费用 销售团队的。到2017年底,管理层认为其销售策略不起作用,并解散了大部分销售基础设施 在美国,并过渡到基于电子商务的解决方案,允许消费者在线启动测试。管理层随后设计 “支点计划”,努力重新定位公司、完善和改进产品并重新加载新开发的方法 到市场。

 

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的 公司推出了消费者发起的测试(CIT)平台。该销售渠道偏离了传统的销售方法,目标是 临床医生。相反,它允许患者直接请求测试,临床医生通过独立的机构监督测试过程 提供商网络和远程医疗。

 

的 COVID-19风险测试于2021年6月在美国市场启动。该公司与Infinity BiologiX LLC签订了许可协议 于2021年5月向美国客户在线销售和分发COVID-19风险测试。

 

的 公司收购了2021年8月收购的EasyDNA业务和2022年7月收购的AffinityDNA业务,分销其消费者和 通过其网站门户和北美、欧洲和澳大利亚的实验室合作伙伴网络直接向客户进行生活方式DNA测试。

 

的 公司于2022年2月推出了针对乳腺癌和结肠癌的geneType Multi-Test,并在澳大利亚和美国市场进行分销 通过公司网站门户向医疗保健专业人员提供信息。公司正在最终确定开发和验证 在其澳大利亚实验室中,基因Type Multi-Test产品的第二阶段元素将包括前列腺癌和卵巢癌的测试, 冠状动脉心脏病和2型糖尿病。该公司预计将于2022年在Multi- Test中推出完整的测试套件。

 

在 2023年3月,公司宣布商业发布黑色素瘤、心房颤动和胰腺基因类型风险评估 试验.

 

在 2023年4月,墨尔本工厂成功完成了NATA审计,评估人员没有发现任何结果。

 

在 2024年5月,公司宣布与美国Wellworks for You,Inc.签署战略联合销售和营销协议 (Wellworks)。作为协议的一部分,Wellworks将将geneType测试组合融入其完全灵活、可扩展的员工中 为美国各地的组织和企业提供健康解决方案,直接接触750个雇主团体和两个以上雇主团体 数百万人的生命被覆盖。

 

在 2024年6月,公司宣布与Stayhealth,Inc.达成重大分销协议,健康与保健技术领域的领导者。的 合作伙伴关系将使geneType创新的多风险测试在整个North的在线药房渠道中传播给更广泛的受众 美国参考Stayhealth处于技术与健康解决方案集成的前沿。他们获得FDA批准的技术拥有越来越多的用户 衡量、跟踪和改善他们的健康结果。2023年,Stayhealth推出了拥有1.5亿用户的在线药房 他们拥有一个包含超过20000万美国电子邮件地址的数据库来推广这一新产品。

 

在 2024年6月,该公司宣布通过与Gene By Gene(GbG)建立合作伙伴关系来扩大美国检测能力 位于德克萨斯州休斯顿的首屈一指的专业遗传实验室,是一家最先进的、高度认可的实验室(CLIA、CAP、AABb和 CDPH许可)。GbG每月可处理多达25,000次测试,大大扩展了geneType的运营能力 在北美

 

报销 和临床研究

 

开始 2017年4月1日,公司转向与患者的直接支付关系,以促进经济和流程的确定性 医疗保健提供者和患者的交易。该变更解决了第三方付款人的报销问题,包括 报销水平低、付款时间长、患者对资格和财务责任感到困惑以及覆盖范围不佳。

 

这 这一转变还减少了公司对临床效用研究的依赖,这些研究旨在实现报销 通过私人保险公司承保。然而,该公司认识到科学和临床数据是帮助加强的关键驱动力 我们的商业地位。该公司打算探索参与进一步研究合作以支持临床的机会 效用医生和主要乳房健康中心寻求多个点确认医疗设备按预期工作 并导致女性健康得到有意义的改善。因此,关于公司的论文发表得越多 基因测试、分析产品性能特征(包括临床有效性和实用性),医生越有可能 要使用测试。

 

在 2022年6月,公司完成了独立开发和验证的可定制预算影响模型(“BMI”),该模型 显示出直接归因于geneType乳腺癌风险评估的实施的显着健康和经济效益 针对美国客户进行测试。BIm由ALVA 10独立开发和验证,其使命是创建经济生态系统 将技术带入医疗保健,使有效的医疗保健解决方案与付款人经济学保持一致。BIm说明了临床途径 患者将经历测试或设备的商业化和利用的经济影响。的主要发现 BIm是美国支付者将乳腺癌治疗年度费用减少140亿美元的潜力。

 

美国 付款人,包括商业保险公司、大型雇主和医疗保险等福利团体,通常不愿意支付新的诊断费用 工具,报销通常需要数年时间才能收到。至关重要的是,GTG的可定制BIm使美国付款人能够加速 了解在商业化之前实施GTG的geneType乳腺癌风险评估测试的经济影响。 这可以提供更快、更确定的结果,并最大限度地降低技术采用风险。GTG的BIm是一个全面的 和动态工具,可以为任何美国付款人定制。重要的是,它还将使GTG能够识别最多的美国付款人 可能会成为快速采用者。

 

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研究 和发展项目

 

期间 截至2024年6月30日止年度,公司支持了以下研发计划,详情如下:

 

乳腺 癌症风险评估测试(布雷斯特癌症的geneType)
结直肠 癌症风险评估测试(结直肠癌geneType)
研究 与Memorial Sloan Kettering纽约签署协议
研究 与墨尔本大学合作 (this合作包括黑色素瘤和前列腺 风险评估)
研究 与俄亥俄州立大学合作
研究 与圣路易斯华盛顿大学合作
研究 与哈佛大学合作
扩大 一系列其他癌症和疾病目标预测风险评估测试

 

在 前几年,其他已终止或以其他方式商业化的项目也得到了该公司的支持。 该公司正在不断寻找新的机会,并计划在未来更加专注于研发活动。在 此外,该公司计划让其科学和管理团队与世界领先的科学专家合作 关于预测性基因检测及其在世界卫生系统中的作用。从历史上看,有些项目是由新发明产生的 由公司制作,而有些则是由其他人与公司接洽,寻求合作和活动支持。

 

协作 与墨尔本大学

 

我们 继续寻找令人兴奋的新方法与墨尔本大学合作,以提高从业者的护理标准 以及他们的病人。

 

我们 资助Jon Emery和John Hopper的3向奖学金职位(添加他们的职位和资历),以进一步实施 乳腺癌风险评估。我们的科学家是乔恩·埃梅里(Jon Emery)领导的MRFF资助的共同研究员,旨在进一步实施多风险 全科医生环境中的分层。我们的实验室是Jon Emery领导的研究的合同实验室处理样本。

 

研究 纽约斯隆·凯特琳合作纪念馆(MSG)

 

在 2017年初,该公司的美国子公司与纽约纪念斯隆·凯特琳癌症中心签订了研究协议 约克大学和剑桥大学。这项合作研究将由乳腺医学主任Mark Robson医学博士领导 Sloan Kettering的服务。该研究旨在评估提供的个人风险信息是否由多基因遗传信息提供 风险评分减少了考虑预防性手术的BRCA突变携带者之间的决策冲突。

 

的 公司相信,这次合作将有利于其与知名癌症遗传学研究人员的接触和合作,这些研究人员 处于风险评估研究的最前沿,并为我们提供可能有益于开发额外的数据 风险评估产品。

 

研究 与哈佛大学合作

 

的 哈佛大学与伯纳德·罗斯纳(Bernard Rosner)和护士健康研究中心(Nurses ' Health Study)合作进行研究,交叉验证卵巢 风险模型。

 

研究 与俄亥俄州立大学合作

 

的 与俄亥俄州立大学Mandy Toland的研究合作也是一项BRCA修饰剂研究,类似于MSk研究。

 

研究 与华盛顿大学合作

 

的 与Graham Colditz以及华盛顿一小群患有和未患有乳腺癌的黑人女性内部小组合作进行研究 大学是评估风险评估的绩效。

 

医疗 研究未来基金拨款(MRFF)

 

对 2023年9月11日,该公司宣布被任命为MRFF基因组学健康未来使命的国家研究合作伙伴 该赠款授予一批知名的国内和国际研究和慈善组织。该补助金将提供 CASSOWARY试验的资助:一项多癌症多基因临床效用和成本效益的随机对照试验 全科实践中的风险评分。食火鸡试验是GTG(行业合作伙伴)国际调查人员之间的合作, 墨尔本大学和伦敦玛丽女王大学、皇家墨尔本医院、皇家马斯登NHS基金会信托基金和 水仙花中心。

 

黄金 海岸私立医院精准肿瘤学试点研究

 

对 2023年9月28日公司宣布与黄金海岸私立医院(GCPH)合作建立精准医疗 医院的诊所。该合作伙伴关系将通过一项针对50名患者的试点研究启动,该研究使用geneType多风险测试 药物基因组学(PGx)测试为GCPH患者提供全面的健康状况。GCPH是澳大利亚Healthscope的一部分 唯一的全国性私立医院运营和医疗保健提供商,拥有由38家医院组成的网络,为每个州和地区提供服务 拥有超过19,000名员工。

 

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竞争

 

的 医疗诊断和生物技术行业面临激烈的竞争。随着有关癌症基因组学和 随着个性化药物向公众开放,该公司预计将有更多旨在识别癌症风险的产品 开发并且这些可能与其产品竞争。使用单核苷酸多态性(SNP)进行疾病风险预测 仍然是一个相对较新的医学领域。

 

组织 例如美国的Ancestry.com、23andMe和Color Genomics已开发出基于SNP的风险测试, 正在吸引大量消费者 对预测感染严重疾病的临床风险的基因测试感兴趣。许多其他组织,包括deCode (冰岛)、Intergenetics和TheroFisher试图将基于SNP的基因检测商业化,面向医生和消费者, 评估相关患者人群的散发性癌症风险。公司所知的正在产品开发的新进入者 舞台包括Counsyl Inc.和美国Invitae Corporation

 

我们 相信我们主要的直接面向消费者的EasyDNA和AffinityDNA产品竞争对手是InspectryDNA、23andMe、MyHeritage、Gene by Gene和 颜色基因组学。

 

澳大利亚 披露规定

 

业务 未来几年的战略和展望

 

的 公司在基因检测市场的竞争地位除其他外基于其以下能力:

 

继续 通过临床试验获得科学验证的过程,加强和维护科学可信度 得到医学期刊同行评审出版物的支持;
创建 保持科学先进的技术,提供专有产品和服务;
继续 加强和改进有关公司癌症风险评估测试的重要性和价值的信息 向患者和医生提供;
多样化 公司提供的产品涉及其他严重疾病类型;
获得 并为公司的产品和服务保持专利或其他保护;
获得 并及时保持所需的政府批准和其他认证;以及
成功 营销公司的产品和服务。

 

如果 如果公司未能成功实现这些目标,其业务可能会受到不利影响。同样,公司的竞争对手 可能成功开发出比其正在开发或将提供的任何技术、产品或服务更有效的技术、产品或服务 公司的技术和服务过时、没有竞争力或不经济。

 

分红

 

没有 股息已于截至2024年6月30日的财年期间支付。不建议股息或分配,或 年内已申报付款给会员,但尚未支付。

 

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项目 4.C组织结构

 

的 下图显示了截至本年度报告发布之日公司的组织结构。公司所有子公司 下图中的公司均为全资拥有。

 

 

项目 4.D财产、厂房和设备

 

作为 截至本报告日期,该公司已就该公司占用的物业签立四份租约。

 

菲茨罗伊, 维多利亚

 

的 公司在澳大利亚维多利亚州菲茨罗伊汉诺威街60-66号租用办公室和实验室场所(墨尔本内城) 来自Crude Pty。有限公司。目前的租约将于2025年2月28日到期。截至6月30日止年度的租金总额, 2024年为241,811澳元(2023年:233,634澳元)。

 

夏洛特, 北卡罗来纳

 

基因型 Inc.(原名Phenogen Sciences Inc.),该公司的美国子公司租用位于Baxter Street 1300号的办公场所, 美国北卡罗来纳州夏洛特市255号套房,中城区Partners LLC。当前租约将于2026年7月31日到期。总 截至2024年6月30日止年度,该场所的租金费用为20,722澳元(2023年:19,724澳元)。

 

休闲裤 昆士兰州克里克

 

在 2024年6月30日公司终止了Kennedy Family位于澳大利亚昆士兰州斯莱克斯溪Sesame Court 1B/1套房的办公室租赁 斯莱克斯克里克私人公司。Ltd.截至2024年6月30日止年度的租金总额为32,136澳元(2023年:31,335澳元)。

 

霍夫, 东萨塞克斯

 

的 公司从Andrew,Chris & Stephen Tugwell处租用位于英国东萨塞克斯郡霍夫60 Lansdowne Place,Hove,East Sussex,United Kingdom的办公场所。 当前租约将于2025年5月30日到期。截至2024年6月30日止年度的总租金费用为26,842澳元(2023年: 25,206澳元)。

 

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项目 4A.未解决的员工评论

 

不 适用

 

项目 5.运营和财务回顾与展望

 

的 以下讨论和分析应与公司的财务报表、财务报表附注一起阅读 本年度报告其他地方出现的报表和其他财务信息。除历史信息外,以下内容 本年度报告的讨论和其他部分包含反映公司计划、估计、 意图、期望和信仰。该公司的实际业绩可能与未来讨论的业绩存在重大差异- 展望陈述。请参阅本年度报告第3项的“风险因素”部分和其他前瞻性陈述 讨论可能导致或促成此类差异的一些(但不是全部)因素。

 

项目 5.A经营业绩概述

 

成立 1989年,遗传技术公司是一家总部位于澳大利亚的成熟分子诊断公司,提供预测性基因检测 和风险评估工具。截至2015年6月30日止年度,该公司剥离了其他基因检测服务的权益, 到那时为止,这些技术加上非编码技术的许可,一直是资助运营的主要收入来源, 专注于提供癌症分子风险评估测试的主要活动。

 

的 截至2021年和2020年6月30日止年度,公司的收入主要来自其geneType的销售 通过全球网络向医疗保健提供者进行“结直肠癌”和“基因类型乳腺癌”基因测试 分销合作伙伴和公司网站门户。该公司截至2023年6月30日止年度的收入和 2024年主要来自通过其国际网络销售其EasyDNA和AffinityDNA品牌基因检测产品 专有EasyDNA和AffinityDNA品牌网站以及亚马逊(AffinityDNA)。

 

以来 成立截至2024年6月30日,公司已发生累计亏损166,376,077澳元。导致公司亏损 主要来自研究和开发、一般和行政以及销售和营销成本相关的成本 其运营。随着公司继续投资新的基因检测产品研发,预计将出现进一步的亏损, 并探索最佳分销方法以商业化其产品。请参阅项目中的财务报表部分 18.

 

财政 年

 

作为 该公司是一家澳大利亚公司,其财年或财务年度于每年6月30日结束。该公司制作经审计的合并 每年6月底的账目,并提供截至每年12月31日的半年账目,两者均 是根据国际会计准则发布的国际财务报告准则(“IFRS”)编制的 标准委员会。

 

比较 截至2024年6月30日的年度至截至6月30日的年度 , 2023

 

的 损益和其他全面收益表的列报符合公司管理层的规定 每月向董事会提交集团业绩和业绩报告。止财政年度 2024年6月30日,公司报告全面亏损总额为12,033,485澳元(2023年:11,650,334澳元),结果包括非现金 减损费用为1,332,000澳元(2023年:2,125,725澳元)。

 

收入 经营

 

期间 2024财年,公司持续经营业务综合总收入(不包括其他收入)下降 比上一年增加了1,021,414澳元(12%),从8,686,118澳元增至7,664,784澳元。收入减少主要是由于销售额减少 由于法国禁止亲子鉴定、动物权利丧失,EasyDNA(1,535,740澳元)直接面向消费者的基因检测 测试和竞争加剧。收购后,AffinityDNA的销售额比上一年(944,508澳元)增加了423,776澳元 于2022年7月14日宣布AffinityDNA业务。

 

金融 收入

 

金融 与上一年相比,2024财年的收入减少了100,650澳元(46%),从220,161澳元降至119,511澳元。减少 是由于收到资金后上一年存入定期存款的利息收入减少 2023年2月筹集资金。

 

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其他 收入

 

其他 与上一年相比,2024财年的收入增加了11,909澳元(1%),从1,836,822澳元增至1,848,731澳元。的 2024财年记录的大部分其他收入主要是收到的研发税收激励退款 来自澳大利亚税务局。记录的研发税收激励收入(或“研发税收抵免”) 由于研发费用增加,2024财年增加了371,189澳元(23%)至1,987,253澳元(2023年:1,616,064澳元)。研发税 激励在可实现时按应计基础确认。较高的研发收入几乎完全被已实现和未实现的抵消 外汇损失比上年增加334,319美元。

 

原 材料和库存变化

 

的 公司2024财年的原材料和库存成本变化从4,335,265澳元减少了574,955澳元(13%) 从上一财年增加至3,760,310澳元。原材料的减少与EasyDNA产品收入的减少一致 在财政年度经历过。

 

佣金

 

委员会 2024财年减少至216,414澳元(2023年:236,019澳元),减少归因于已付/应付佣金 为EasyDNA和AffinityDNA代理销售。

 

员工 福利开支

 

员工 2024财年的福利费用增加了1,378,041澳元(22%),至财年的7,586,107澳元(2023年:6,208,066澳元)。 这一增长主要是由于geneType测试商业化人员扩大的结果。

 

广告 及促销开支

 

广告 促销费用下降至2,609,315澳元,较同期下降4%(2023年:2,712,353澳元)。减少的一部分是 归因于EasyDNA和AffinityDNA业务的按点击付费广告成本1,066,748澳元(2023年:1,556,627澳元)。此外, 随着公司扩张,本财年的其他营销成本增加至1,542,567澳元,而上一财年为1,155,726澳元 澳大利亚和美国市场的geneType品牌基因测试。

 

专业 费

 

专业 费用减少了75,579澳元(6%),从去年的1,360,640澳元降至今年的1,285,061澳元。减少主要与减少有关 法律费用以及审计和会计费用分别为138,577澳元和284,794澳元。这些下降被咨询的增加所抵消 费用为358,687澳元,从去年的558,987澳元增至今年的917,674澳元。

 

研究 开发费用

 

实验室, 与上一年相比,研发成本减少了528,403澳元(41%),从1,281,157澳元降至752,754澳元。 此类支出包括专利申请和 年费。由于专业费用(减少165,148澳元)和专利成本减少,实验室、研发成本下降 (by 162,768澳元)和实验室用品(246,528澳元)。

 

折旧 及摊销

 

折旧 以及归属于实验室测试设备、计算机设备、办公设备、租赁摊销的摊销费用 和其他无形资产为534,888澳元(2023年:676,583澳元)(减少21%)。减少是由于部分固定资产完全被淘汰 年底前贬值。

 

减值 费用

 

减值 2024财年的费用降至1,332,000澳元(2023年:2,125,725澳元)。减损费用是减损的结果 由于初始产品收入未达到预期,因此在与收购EasyDNA相关的声誉中确认费用。 上一年的声誉损失为1,845,000澳元,本财年记录的费用余额是结果 对截至2023年6月30日某些未偿还债务人余额无法收回的额外拨备。

 

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其他 费用

 

其他 本财年费用减少了165,256澳元至3,521,774澳元(2023年:3,687,030澳元)。减少主要与减少有关 与上一年相比,上市和监管费用增加了208,480澳元。

 

金融 成本

 

金融 成本增加至51,622澳元(2023年:29,515澳元)。融资成本与要求在以下项下确认的非现金租赁利息费用有关 会计准则IFRS。增加主要是由于与保险资金贷款相关的利息费用33,983澳元 小组的。

 

收入 税收抵免

 

收入 本财年确认的税收抵免为零(2023年:158,329澳元)。上一年的抵免主要与确认有关 递延所得税资产以抵消收购EasyDNA和AffinityDNA产生的剩余递延所得税负债 品牌和其他可识别无形资产。

 

比较 截至2023年6月30日的年度至截至2022年6月30日的年度 

 

的 当前的列报与公司管理层对集团业绩和业绩的月度报告一致 提交给董事会。截至2023年6月30日的财年,公司报告全面亏损总额为11,650,334澳元 (2022:7,103,134澳元),结果包括非现金减损费用2,125,725澳元(2022年:564,161澳元)。

 

收入 经营

 

期间 2023财年,公司持续经营业务综合总收入(不包括其他收入)有所增加 比上一年增加了1,891,302澳元(28%),从6,794,816澳元增至8,686,118澳元。收入的增长主要是由于销售额的增加 EasyDNA(1,708,823澳元)的直接面向消费者的基因检测以及在收购后AffinityDNA(944,508澳元)的销售 AffinityDNA业务于2022年7月14日发布。

 

金融 收入

 

金融 与上一年相比,收入增加了183,905澳元(507%),从36,256澳元增至220,161澳元。增加是由于组合 收到资金后一年内存入定期存款的较高利率和额外利息收入 来自2023年2月筹集的资金。

 

其他 收入

 

其他 与上一年相比,收入减少了946,569澳元(34%),从2,783,391澳元降至1,836,822澳元。大部分其他收入 本财年记录的主要是从澳大利亚税务局收到的研发税收激励退款。 本财年记录的研发税收激励收入(或“研发税收抵免”)为1,616,064澳元(2022年: 2,397,552澳元)。研发税收激励在可实现时按应计基础确认。研发税收抵免较低是由于 减少外部研发费用。

 

原 材料和库存变化

 

的 公司原材料和库存成本变化增加了1,321,731澳元(44%),从3,013,534澳元增至4,335,265澳元 上一财年。原材料的增长与EasyDNA和AffinityNDA产品收入的增长一致 在财政年度内。

 

佣金

 

委员会 增加至236,019澳元(2022年:156,625澳元),增加归因于就代理销售支付/应付佣金 EasyDNA和AffinityDNA。

 

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员工 福利开支

 

员工 本财年福利费用增加了339,411澳元(6%)至6,208,066澳元(2022年:5,868,655澳元)。增长主要是 收购AffinityDNA业务并扩大后,员工数量从52人增加到60人 商业化人员进行geneType测试。

 

广告 及促销开支

 

广告 促销费用增加至2,712,353澳元,较同期增长44%(2022年:1,885,402澳元)(44%)。大多数 这一增长归因于EasyDNA和AffinityDNA业务的按点击付费广告成本1,556,627澳元(2022年:987,460澳元)。 此外,本财年的其他营销成本增加至861,639澳元,而上一年的675,493澳元,由于该公司 在澳大利亚和美国市场扩大了geneType品牌基因测试。

 

专业 费

 

专业 与上一年相比,费用减少了474,804澳元(26%),从1,835,444澳元降至1,360,640澳元。减少主要与 咨询费减少558,987澳元(2022年:994,275澳元)。

 

研究 开发费用

 

实验室, 与上一年相比,研发成本增加了575,650澳元(82%),从705,507澳元增至1,281,157澳元。此类别 支出的支出包括专利申请和年度续订费。随着公司的增加,实验室、研发成本增加 持续开发并加速其针对一系列人类疾病类型的新型PPA测试管道的商业化。也 正在开发一套针对一系列遗传性癌症的基因小组测试。研发活动涵盖 以下疾病:乳腺癌、结直肠癌、前列腺癌、卵巢癌、胰腺癌、黑色素瘤、2型糖尿病、 心血管疾病和心房颤动。

 

折旧 及摊销

 

折旧 以及归属于实验室测试设备、计算机设备、办公设备、租赁摊销的摊销费用 和其他无形资产为676,583澳元(2022年:578,668澳元),增加与实验室测试设备增加有关 由于前期购买和首次确认AffinityDNA办公室租赁的租赁摊销而产生的折旧。

 

减值 费用

 

减值 2023财年的费用增加至2,125,725澳元(2022年:564,161澳元)。减损费用主要是由于减损造成的 与收购EasyDNA相关的声誉确认的费用为1,845,000澳元,因为初始产品收入尚未 达到预期。本财政年度记录的费用余额是无法收回的额外备抵的结果 截至2023年6月30日的某些未偿债务人余额。

 

其他 费用

 

其他 本财年的费用增加至3,687,030澳元(2022年:2,154,375澳元)。增加主要与IT和增加有关 通讯费用(585,875澳元)、差旅和娱乐费用(299,622澳元)和行政费用(249,387澳元)。

 

金融 成本

 

金融 成本增加至29,515澳元(2022年:15,215澳元)。融资成本与要求在以下项下确认的非现金租赁利息费用有关 会计准则IFRS。

 

收入 税收抵免/(费用)

 

收入 本财年确认的税收抵免为158,329澳元(2022年:32,125澳元),主要与递延所得税资产的确认有关 以抵消收购EasyDNA和AffinityDNA品牌和其他 可识别的无形资产。

 

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澳大利亚 披露规定

 

显著 事态的变化

 

那里 除“重要”中指出的情况外,截至2024年6月30日的一年内,事态没有发生重大变化 第4.A项中包含的“企业发展”部分

 

可能 发展和预期运营结果

 

在 董事报告发布之日,公司董事内部没有尚未披露的其他事项 2024财年的报告和财务报表以及相关注释。

 

环境 条例

 

我们 运营不受澳大利亚联邦或州/领地立法的任何重要环境法规的约束。 我们认为已建立足够的系统来管理我们的义务,并且不知道有任何违反环境要求的情况 属于我们的。

 

项目 5.b流动性和资本资源

 

摘要

 

以来 成立之初,该公司的运营主要来自股东的注资、收益 我们的许可活动和运营收入、赠款以及公司现金和现金等值物赚取的利息。

 

目前 公司的整体现金状况取决于其研发活动的完成、整体市场接受度 其新基因检测产品的收入及其产生的收入。截至2011年,该公司的现金及现金等值物为1,020,608澳元 2024年6月30日。

 

期间 截至2024年、2023年和2022年6月30日止年度,公司发生全面亏损总额为12,033,485澳元、11,650,334澳元和7,103,134澳元, 分别

 

期间 截至2024年、2023年和2022年6月30日止年度,公司用于持续经营业务的净现金流量为9,679,048澳元、9,723,095澳元 分别为5,659,456澳元。

 

的 公司将继续将其全面的风险评估测试套件和直接针对消费者的投资组合带到全球主要市场 遍布全球市场。该公司还可以扩大和升级实验室,以纳入下一代测序和高密度 SNP阵列。这些将首次允许对一个人的基因组风险进行100%的风险评估,包括单基因、 多基因、临床风险因素和家族史。

 

去 关切.截至2024年6月30日止年度,公司发生全面亏损总额为12,033,485澳元(2023年:11,650,334澳元) 运营净现金流出为9,679,048澳元(2023年:9,723,095澳元)。截至2024年6月30日,公司持有现金及现金等值物总额 为1,020,608澳元,净流动资产总额为A(500,088美元)。

 

2024年7月26日,公司宣布正在重组运营模式,以大幅减少 持续的运营损失和现金流出。作为重组的一部分,公司将过渡到轻资本运营 研发和新产品开发、知识产权创建、实验室测试以及引入预测性等活动的模型 之前在内部进行的基因检测产品将通过以下方式停止、外包和/或进行 合作。展望未来,公司的重点将是增加EasyDNA和AffinityDNA业务的收入以及商业化 通过战略合作伙伴关系在美国建立geneType。

 

的 随着公司继续将资源投入研究,预计在可预见的未来将继续遭受损失和现金外流 和geneType风险评估测试的开发活动,并投资geneType、EasyDNA的商业化活动 和AffinityDNA,通过营销、销售和分销渠道。

 

的 公司的持续生存能力及其继续持续经营的能力,并在到期时履行其债务和承诺, 取决于2025日历年早期股权融资预测的满意完成。公司并 目前没有任何一方对认购股份做出有约束力的承诺,并且任何筹集都将受到维持积极上市的约束 在纳斯达克交易所以及遵守ASX上市规则7.1项下集团的义务。

 

2024年8月23日,该公司收到纳斯达克证券市场有限责任公司的通知,称其不符合最低出价 纳斯达克上市规则5550(a)(2)的价格要求继续在纳斯达克资本市场上市,自收盘买入价起 该公司在纳斯达克资本市场的美国存托股票(ADS)连续30个交易日低于1美元。

 

根据纳斯达克上市规则5810(c)(3)(A),公司自通知之日起有180个日历日的时间恢复合规性 具有最低出价要求,在此期间ADS将继续在纳斯达克资本市场交易。如果在之前的任何时候 2025年2月19日,该公司ADS的出价至少连续10个工作日收于每份ADS 1.00美元或以上 将重新符合最低投标要求。

 

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重新遵守 随着纳斯达克的最低出价要求,可以通过积极的业务发展(向市场宣布)来解决,领先 ADS价格升至1美元以上或股票分拆。该公司还可以选择申请延期, 再过180天才能恢复合规性。预计这一进展不会阻碍公司筹集额外资金的能力 股权资本。

 

由于 由于围绕筹集额外股权的时间、金额或能力的不确定性,存在重大不确定性,可能 对本集团继续持续经营的能力产生了重大怀疑,因此可能无法实现其 资产并在正常业务过程中解除其负债。然而,董事相信公司将会成功 在其股权筹集工作中,并在这方面拥有良好的记录,因此,已编制了财务报告 持续经营基础。因此,未对财务报表做出有关可收回性和分类的调整 如果本集团无法继续作为 持续关注。

 

操作 活动 公司当年经营活动使用的净现金为9,679,048澳元、9,723,095澳元和5,659,456澳元 分别截至2024年、2023年和2022年6月30日。各期经营活动使用的现金主要包括发生的损失 在因非现金项目(例如减损费用、折旧和摊销费用、股份支付费用)而减少的运营中, 与投资相关的外汇变动和未实现损益。按大致数量级计算,现金流出 通常包括员工相关成本、营销费用、服务测试费用、一般和行政费用、法律/专利 费用和研发成本。

 

投资 活动.公司在投资活动中收到/(使用)的净现金为114,900澳元、311,937澳元和3,461,163澳元 分别截至2024年、2023年和2022年6月30日止年度。截至2023年6月30日止年度,公司支付了486,188澳元 收购AffinityDNA业务,代表收购协议项下到期的第一笔付款。购买 过去3个财政年度,工厂和设备的价值分别为32,967澳元、17,552澳元和63,926澳元。没有进一步的重要性 截至2024年、2023年和2022年6月30日止年度的资本支出。

 

融资 活动.公司收到/(用于)融资活动的净现金为2,822,393澳元、5,919,943澳元和(279,064澳元) 分别截至2024年、2023年和2022年6月30日止年度。截至2024年6月30日止年度,公司产生现金流入 发行普通股减少与交易相关的成本534,611澳元(2023年:897,797澳元)的2,577,147澳元(2023年:7,172,399澳元)。 截至2022年6月30日止年度内没有进行融资。2024财年,公司还获得了担保贷款 来自Radium Capital的601,000美元。该贷款以截至6月30日年度的预期研发税收激励退款为抵押 2024年,吸引力为每月1.33%。贷款金额占根据资格估计的研发退税的80% 截至2023年12月31日的六个月支出。贷款加上任何利息须在收到集团的研发后支付 退款.公司过往年度没有任何贷款。

 

租赁。 截至2024年6月30日,该公司已签订三份物业租约。该等租赁与公司占用的场所有关 位于澳大利亚维多利亚州菲茨罗伊,由其美国子公司geneType Inc.(原名Phenogen Sciences Inc.),在北卡罗来纳州夏洛特, 美国以及英国子公司是位于英国东萨塞克斯霍夫的GeneType UK Limited。有关的总租金 截至2024年6月30日的年度分别为241,811澳元、20,722澳元和26,842澳元。

 

的 截至6月已生效且剩余不可撤销租赁期的三项租赁的未来最低租赁付款 2024年30日为234,795澳元。

 

项目 5.C研究与开发、专利和许可等

 

我们 主要业务行业是生物技术,历史上重点关注基因组学和遗传学,非编码专利的许可, 减少胎儿细胞专利的实践并扩大相关服务测试业务。研究及开发开支 如下所示反映了科学和实验室团队对开发和营销一套世界领先的预测产品的高度关注 基因测试。

 

的 下表详细介绍了按项目列出的历史研发支出。

 

  

2024

一个$

  

2023

一个$

  

2022

一个$

 
多基因风险检测   4,227,639    3,679,139    4,204,919 
研发费用总额   4,227,639    3,679,139    4,204,919 
其他支出   17,422,607    18,973,214    12,572,667 
总支出   21,650,246    22,652,353    16,777,586 
R&D占总支出的百分比   19.5%   16.7%   25.1%

 

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项目 5.D趋势信息

 

看到 第5.A项“经营结果”和第5.b项上面的“流动性和资本资源”。

 

项目 5.E关键会计估计

 

不 适用

 

项目 6.董事、高级管理人员和员工

 

(开始 薪酬报告(已审计)的 澳大利亚披露要求)

 

的 基因技术有限公司董事会(“董事会”)提交2023/2024年薪酬报告,该报告已 根据相关《2001年公司法》和会计准则要求编制。薪酬报告列出 根据IFRS 24 '相关定义,我们公司关键管理人员(“KMP”)的薪酬信息 截至2024年6月30日的财年,《党派披露》和《2001年澳大利亚公司法》。薪酬报告 符合2001年公司法第300 A条的规定,已按照2001年公司法第308(3C)条的要求进行审计。

 

项目 6.A董事和高级管理人员

 

的 截至本年度报告日期,公司董事为:

 

名字   年龄   标题
彼得·鲁宾斯坦先生   58   局主席 董事
耶齐(乔治)穆奇尼基博士   68   非独立非执行 主任
林赛·韦克菲尔德博士   66   独立非执行 主任
西蒙·莫里斯先生   51   首席执行官
马克·齐尔森先生   61   公司秘书/主管 财务官
卡尔·斯塔宾斯先生   69   首席商务官
凯文·卡米莱里先生   47   首席执行官, EasyDNA

 

先生 彼得·鲁宾斯坦,BEc。LLB (独立非执行董事及主席)

 

先生 鲁宾斯坦于2018年1月31日被任命为董事会成员,并于2020年4月被任命为董事长。他拥有20多年的经验 从早期技术商业化到在ASX公开上市。他是一名律师,曾在一家大型国家工作过 在搬到莫纳什大学的商业部门Montech之前,他是一家公司。

 

先生 鲁宾斯坦对生物技术领域各种技术公司的创建、推出和管理有着丰富的经验, 数字支付和可再生能源。Rubinstein先生还是DigitalX Limited(ASX:BCC)的非执行董事。

 

博士 耶日(乔治)穆奇尼基、MBBS (非独立非执行董事)

 

博士 Muchnicki于2018年1月31日被任命为董事会成员,并于2019年9月起担任临时首席执行官直至任命 西蒙·莫里斯先生的角色。Muchnicki博士毕业于莫纳什大学,并在私人诊所担任职位超过 25年,担任墨尔本大学学生健康主管。14年来,他一直参与商业化 并资助从基因沉默到再生医学的生物技术领域的研发。

 

博士 Muchnicki拥有强大的商业和医疗技能,包括对软件开发、区块链和可持续发展的广泛兴趣 建材.他是Speed Panel Holdings的联合创始人兼非执行董事,该公司是防火墙和隔音墙领域的世界领导者 解决方案他还是Candlebets的联合创始人,Candlebets是一家软件开发公司,正在为 游戏行业。

 

博士 林赛·韦克菲尔德、MBBS (独立非执行董事)

 

博士 韦克菲尔德于2014年9月24日被任命为董事会成员。他于1985年创立了Safetech Pty Ltd,并在接下来的25年里创立了Safetech 成为澳大利亚材料搬运和起重设备市场的一支力量,设计和制造各种工业设备 产品. 1993年,他离开医学界,成为Safetech的全职首席执行官。2006年,Safetech荣获Telstra澳大利亚国家奖 年度商业。2013年,Safetech合并并最终收购了Tiemen Matters Handling。

 

博士 Wakefield继续担任Safetech的首席执行官。它是澳大利亚最大的码头设备、货运起重机制造商和供应商 和定制起重解决方案。Safetech拥有约100名员工。韦克菲尔德博士担任生物技术投资者已有20多年。

 

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高级 管理

 

的 公司拥有一支由合格、经验丰富的人才组成的专业团队,其中包括一批研发科学家和 专业人除了上述三名非执行董事外,公司目前还有55名全职同等员工。

 

先生 西蒙·莫里斯, GAICD (行政总裁)

 

先生 莫里斯于2021年2月1日被任命为首席执行官,在制药领域拥有20多年的经验, 医疗保健和快速消费品行业曾在赛诺菲和Blackmores担任高级管理职位。他带来了丰富的管理经验 团队并成功执行销售、营销和品牌建设。

 

此外, 先生莫里斯在领导这些行业的商业化方面发挥了关键作用,并了解独特的压力和机遇。 他领导公司通过战略调整执行,并将推动基因技术商业化战略, 继续推动整个业务的创新。

 

先生 马克·齐尔森, BComm,,MBA,FCPA,MAICD(公司秘书/首席财务官)

 

先生。 Mark Ziirsen于2024年7月16日被任命为首席财务官兼公司秘书。Ziirsen先生拥有商学学士学位 来自昆士兰大学,新英格兰大学工商管理硕士,澳大利亚注册会计师研究员,澳大利亚研究所成员 公司董事。马克是一位经验丰富的澳交所和纳斯达克上市公司首席财务官、公司秘书和董事的非执行董事。他的高管 职业生涯横跨生命科学、技术和消费者,包括在主要的澳交所上市公司担任高级财务领导职务,如 作为耳蜗人、贵族、可口可乐阿马蒂尔和古德曼·菲尔尔德。他曾任职于澳交所上市公司的非执行董事,包括 担任Opyl Limited(澳大利亚证券交易所股票代码:OPL)的主席和审计委员会主席,Opyl Limited是一家在澳大利亚证券交易所上市的专注于生命科学的人工智能技术企业, 电子健康SaaS公司Respiri Limited(ASX:RSH)和以SaaS为基础的科技公司Orcoda Limited(ASX:ODA)。马克开始了他的职业生涯 在安永工作,从事商业咨询、税务和管理咨询工作。他最近担任的执行职务包括,Opyl Limited执行主席, 现任纳斯达克集团有限公司(澳交所股票代码:WWG)、安特瑞斯科技有限公司(澳交所股票代码:AVR)首席财务官兼公司秘书。 和董事的金融和亚太地区在Cochlear(澳大利亚证券交易所股票代码:COH)。

 

40
 

 

先生 卡尔·斯塔宾斯 (首席商务官)

 

先生 斯塔宾斯于2021年加入公司,并于2021年9月1日被任命为首席商务官。斯塔宾斯先生是一位经验丰富的人 生物技术和诊断行业的高级领导者,专注于商业化、销售、营销和业务开发。

 

他 拥有丰富的本地和全球诊断产品商业化经验。他在美国工作了13年,曾任职 担任Panbio USA Ltd的高级副总裁以及Quest Diagnostics子公司Focus Diagnostics的销售和营销副总裁 (纳斯达克股票代码:DGX),世界上最大的病理实验室之一。

 

在 2012年7月,Stubbings先生搬回澳大利亚,被任命为Benitec Bizerma Limited(ASX:BLt, 纳斯达克:BNSX)。最近,他协助几家澳大利亚生物技术公司制定商业化战略。这些公司 包括开发乳腺癌血液检测的初创公司BCAL Diagnostics、提供检测的免疫肿瘤公司Minomic 用于前列腺癌; Biotron(ASX:BIT),一家正在开发和商业化抗病毒小分子疗法的上市公司。 2019年,Stubbings先生被任命为Sienna Cancer Diagnostics Ltd(ASX:SDX)的首席执行官兼董事总经理。在这个职位上,他帮助领导 Sienna和BARD 1 Life Sciences(ASX:BD 1)成功合并。合并后,斯塔宾斯先生被任命为首席运营官 合并后实体BARD 1 Life Sciences的官员。

 

先生 斯塔宾斯拥有昆士兰理工大学应用科学(医疗技术)学士学位。

 

先生 凯文·卡米莱里 (EasyDNA首席执行官)

 

先生 Camilleri于2021年加入公司,并于2021年8月16日被任命为EasyDNA首席执行官。他是创始会员 于2001年成立EasyDNA品牌,并随着时间的推移,该业务发展成为一家领先的国际在线基因检测服务提供商。 Camilleri先生毕业于英国巴斯大学商学院,多年来积累了广泛的技能,涵盖 业务管理的大部分方面包括战略、财务、组织、运营和商业技能。他带给 公司有能力根据基因技术的国际扩张战略管理跨境组织。

 

项目 6.b补偿

 

元件 赔偿

 

独立 必要时向薪酬顾问寻求外部建议,但截至6月期间没有寻求任何建议 2024年30日,或比较时期。董事会旨在确保薪酬做法:

 

竞争 合理,使公司能够吸引和留住关键人才
对齐 符合公司的战略和业务目标以及股东价值的创造
透明 而且容易理解,而且
可接受 致股东。

 

元素   目的   性能 度量
固定 年薪(FR)   提供 有竞争力的市场薪资,包括养老金和非货币福利  
短期 激励(STI)   奖励 年度绩效和保留率   公司 和个人绩效目标
长期 激励(LTI)   对准 对长期股东价值   分享 价格、筹集资金、公司和个人绩效目标

 

41
 

 

(i) 固定 年薪(FR)

 

客观化

 

的 薪酬委员会每年监督固定薪酬的制定。该流程包括对公司、部门的审查 和个人绩效、市场和内部以及(如适用)外部建议的相关比较薪酬 政策和实践。委员会成员可以获得独立于管理层的外部建议。

 

结构

 

固定 薪酬由以下部分或全部组成:

 

基地 薪资;
非货币 福利,例如健康保险;以及
退休金 福利,包括雇主缴款,

 

与 除了雇主缴纳的养老金外,高管们可以灵活地决定其养老金的构成 固定薪酬总额以及现金和其他福利之间的分配。其目的是选择的付款方式为 对于收件人来说是最佳的,而不会给公司带来任何额外成本。

 

固定 薪酬每年会参考个人表现、个人职位的市场基准和整体财务状况进行审查 公司业绩。高管固定薪酬的任何变更首先须经薪酬委员会批准。

 

所有 使用一组变量定期评估员工薪酬,并考虑法定因素的增加 养老金缴款。每年通过与独立市场数据的比较对现有基本工资进行评估 其中提供了有关生物技术和制药行业内类似职位支付的工资和其他福利的信息, 使用第三方薪资调查数据。每个员工的年度绩效审查基于用于评估的评级系统 他或她的加薪资格。其他定性因素,包括个人的专业知识和经验 以及更换该人员的困难性,在考虑薪资调整时也会考虑在内。

 

薪酬 委员会成员

 

作为 于本报告日期,委员会的组成如下:

 

博士 Lindsay Wakefield -委员会主席
先生 彼得·鲁宾斯坦(成员)

 

(ii) 短期 激励措施(STI)

 

短 期限激励(STI)是一项适用于高管和其他高级员工的年度计划,基于两者的表现 公司和个人在特定财政年度。STI范围因角色、职责和可交付成果而异 由每个人实现。授予相关员工的实际STI付款将取决于预先商定的具体金额的程度 目标在一个财政年度内实现。具体目标可通过开始定义的商定测量方法量化 财政年度的。在绩效周期内定期评估高管或高级员工的持续绩效。

 

公司 目标及其相对权重取决于各自个人的职位和责任,但在尊重方面 截至2024年6月30日止年度的成就包括:

 

实现 降低成本或提高效率的目标;
贡献 业务增长和扩张;以及
性能 或交付的结果超出商定目标。

 

这些 选择措施是因为它们代表了业务短期成功的关键驱动力,并提供了交付框架 长期价值。个人和运营目标因高管的角色和职责而异,并包括目标 例如向客户提供服务、项目交付、合规成果、知识产权管理和各种员工管理 和领导目标。

 

42
 

 

成就 个人目标或目标的确定由个人及其直接经理记录和评估。个人 将参加年度绩效审查,并必须提供他或她在期间实现的目标的证据 审查期间。然后根据成就量表对每个目标进行评级。根据评分的总和,个人 可能有资格获得STI付款。

 

STI 付款(如果有的话)通常在每年八月或九月支付,具体取决于绩效审查流程的完成 并收到满意的评级。薪酬委员会对首席执行官进行这一流程。于本财政 截至2024年6月30日的年度,没有向高管和其他高级员工支付短期激励金。

 

(iii) 长期 激励措施(LTI)

 

的 公司LTI安排的目标是以与高管和高级员工薪酬保持一致的方式奖励他们 创造股东财富。因此,大额LTI补助通常只会发放给能够影响力的高管 股东财富的产生并对公司的长期盈利能力产生影响。有股价目标 将在授予高管的LTI补助的履行权归属之前满足。有归属期的期权也可以作为 一种保留工具,可能会减少高绩效高管和高级员工成为其他公司攻击目标的可能性。

 

长 对高管和高级员工的定期激励(LTI)补助以对未发行普通股的期权的形式提供 根据公司员工期权计划的条款和条件授予的公司。做出贡献的精选高管 邀请对公司长期盈利能力有重大影响的人参与员工期权计划。薪酬 这些补助金的价值各不相同,并根据个人角色的性质及其个人来确定 潜在的和具体的表现。

 

在 如果高管在其选择权归属之前停止雇用,则不符合服务条件,并且 奖项不能行使。如果公司控制权发生变化,业绩 期间结束日期将提前至控制权变更之日,奖励将在此缩短的期间内归属。

 

链路 薪酬与绩效之间

 

法定 业绩指标

 

的 公司旨在使高管薪酬与公司的战略和业务目标以及股东的创建保持一致 财富下表显示了公司要求的公司过去五年财务业绩衡量标准 2001年法案。然而,这些不一定与确定可变薪酬金额时使用的措施一致 授予KMP。因此,法定关键绩效指标与 授予的可变薪酬。

 

   2024   2023   2022   2021   2020 
本年度业主应占亏损(澳元)   12,017,219    11,750,923    7,130,998    6,294,775    6,425,604 
基本每股收益(分)   (0.1)   (0.1)   (0.1)   (0.1)   (0.2)
年底股价(澳元)   0.07    0.003    0.003    0.005    0.006 

 

的 由于业务性质,公司自成立以来盈利一直为负。股东财富反映了这种投机性 和波动的市场部门。公司从未宣派股息。公司将继续研发 活动,导致其知识产权组合扩大,以及其产品收入持续增长 三个关键品牌; geneType、EasyDNA和AffinityDNA。总体目标是实现关键开发和商业里程碑 以进一步增加股东价值。

 

43
 

 

薪酬 费用

 

细节 公司每位董事和每位指定高级人员薪酬各主要要素的性质和金额 以下列出了截至2024年6月30日的财政年度内,公司及其子公司提供的各种服务。所有 数字以澳元(A$)表示。

 

          短期 好处     后-
就业养老金
  其他 长期利益     分享- 基于付款股权           百分比 (%)  
姓名和头衔         薪金/费用     STI#     其他 **     ***   ****     *****     总计     固定     变量  
非执行 董事       一个$     一个$     一个$     一个$   一个$     一个$     一个$     雷姆。     雷姆。  
博士 林赛·韦克菲尔德     2024       67,462       -       -       7,421     -       -       74,883       100       -  
先生 彼得·鲁宾斯坦     2024       139,769       -       -       10,425     -       -       150,194       100       -  
先生 尼古拉斯·伯罗斯     2024       42,164       -       -       4,638     -       -       46,802       100       -  
                                                                               
非独立 非执行董事                                                                              
博士 耶日·穆奇尼基     2024       81,022       -       -       6,416     -       -       87,438       100       -  
                                                                               
管理                                                                              
先生 西蒙·莫里斯(2)     2024       340,000       -       9,266       27,399     5,945       66,971       449,581       85       15  
先生 托尼·迪·彼得罗(6)     2024       228,059       -       (10,131)       20,549     (313)       -       238,164       100       -  
女士 凯瑟琳·安德鲁斯(1)     2024       66,441       -       3,985       7,309     -       -       77,735       -       -  
先生 卡尔·斯塔宾斯(4)     2024       237,933       -       500       26,173     2,607       34,462       301,675       89       11  
先生 凯文·卡米莱里(5)     2024       257,547       -       6,268       4,490     -       27,815       296,120       91       9  
                                                                               
总计     2024       1,437,705       -       9,888       114,820     8,239       129,248       1,699,900       92       8  

 

引用 上表:

 

** 其他包括年假部分的变动

 

*** 根据公司法规200万.3.03(1)第7项

 

**** 公司法规规定的其他长期福利200万.3.03(1)第8项

 

***** 根据公司法规200万.3.03(1)第11项,以股权结算的股份支付

 

44
 

 

细节 公司每位董事和每位指定高级人员薪酬各主要要素的性质和金额 以下列出了截至2023年6月30日的财政年度内,公司及其子公司提供的各种服务。所有 数字以澳元(A$)表示。

 

          短期 好处     后-
就业养老金
    其他 长期利益     分享- 基于付款股权           百分比 (%)  
姓名和头衔         薪金/费用     STI#     其他 **     ***     ****     *****     总计     固定     变量  
非执行 董事       一个$     一个$     一个$     一个$     一个$     一个$     一个$     雷姆。     雷姆。  
博士 林赛·韦克菲尔德     2023       67,462       -       -       7,084       -       -       74,546       100       -  
先生 彼得·鲁宾斯坦     2023       154,769       -       -       9,951       -       -       164,720       100       -  
先生 尼古拉斯·伯罗斯     2023       67,462       -       -       7,084       -       -       74,546       100       -  
                                                                                 
非独立 非执行董事                                                                                
博士 耶日·穆奇尼基     2023       58,330       -       -       6,125       -       -       64,455       100       -  
                                                                                 
管理                                                                                
博士 理查德·奥尔曼     2023       48,162       21,707       3,007       7,336       7,071       -       87,283       75       25  
先生 迈克·托罗(3)     2023       63,584       17,031       4,192       6,444       -       -       91,251       81       19  
先生 西蒙·莫里斯(2)     2023       330,565       24,188       13,985       25,375       2,285       191,346       587,744       63       37  
先生 托尼·迪·彼得罗(6)     2023       158,958       -       10,131       15,028       313       -       184,430       100       -  
先生 卡尔·斯塔宾斯(4)     2023       223,444       14,205       (1,335 )     24,953       1,309       34,368       296,944       84       16  
先生 凯文·卡米莱里(5)     2023       233,276       14,725       1,276       4,131       -       27,739       281,147       85       15  
                                                                                 
总计     2023       1,406,012       91,856       31,256       113,511       10,978       253,453       1,907,066       82       18  

 

引用 上表:

 

# 代表2022财年短期激励的支付

 

** 其他包括年假部分的变动

 

*** 根据公司法规200万.3.03(1)第7项

 

**** 公司法规规定的其他长期福利200万.3.03(1)第8项

 

***** 根据公司法规200万.3.03(1)第11项,以股权结算的股份支付

 

期间 截至2020年6月30日的财年,董事会批准获得与融资、合规、纳斯达克相关的咨询服务 其非执行董事兼现任主席Peter Rubinstein先生的听证会和投资者关系。采购的服务是 通过Peter Rubinstein先生的关联实体ValueAdmin.com Pty Ltd,截至2024年6月30日止年度的金额为45,000澳元 (2023:60,000澳元)。

 

期间 截至2022年6月30日的财政年度,董事会批准获得与企业资源整合相关的咨询服务; 表观遗传学;躯体测试; NTIP;非独立非执行董事博士的运营商测试及其相关营销建议。 耶日·穆奇尼基。采购的服务是通过Jerzy Muchnicki博士的私人咨询公司进行的,价值为22,692澳元(2023年:无)。

 

(1) Kathryn Andrews女士于2024年3月25日被任命为公司秘书兼首席财务官。她于2024年7月23日辞职。

 

(2) 莫里斯先生于2021年2月1日被任命为首席执行官(CEO)。

 

(3) 先生Tonroe于2021年6月15日被任命为首席财务官(CFO)。他于2022年11月28日辞职。

 

(4) 斯塔宾斯先生于2021年9月1日被任命为首席商务官(CCO)。

 

(5) Camilleri先生于2021年8月16日被任命为EasyDNA首席执行官。

 

(6) Di Pietro先生于2022年11月28日被任命为公司秘书兼首席财务官。他于2024年3月29日辞职。

 

45
 

 

合同 与董事和其他主要管理人员的协议

 

姓名:   博士 耶日·穆奇尼基
职位:   非独立 非执行董事
固定 报酬:   64,746澳元 (包括退休金)
咨询 费用:   22,692澳元
     
姓名:   先生 彼得·鲁宾斯坦
职位:   非执行 董事兼主席
固定 报酬:   105,194澳元 (包括退休金)
咨询 费用:   45,000澳元 (不包括商品及服务税)
     
姓名:   博士 林赛·韦克菲尔德
职位:   非执行 主任
固定 报酬:   74,883澳元 (包括退休金)
     
姓名:   先生 尼古拉斯·伯罗斯
职位:   非执行 主任
固定 报酬:   46,802澳元 (包括退休金)
     
姓名:   先生 西蒙·莫里斯
职位:   首席 执行官
固定 报酬:   377,400澳元 (包括退休金)
     
姓名:   先生 托尼·迪·彼得罗
职位:   前 公司秘书兼首席财务官
固定 报酬:   30万澳元 (包括退休金)
     
姓名:   女士 凯瑟琳·安德鲁斯
职位:   公司 秘书兼首席财务官
固定 报酬:   26万澳元 (包括退休金)
     
姓名:   先生 卡尔·斯塔宾斯
职位:   首席 商务官
固定 报酬:   217,560澳元 (包括退休金)
     
姓名:   先生 凯文·卡米莱里
职位:   首席 EasyDNA执行官
固定 报酬:   262,036澳元

 

46
 

 

关键 条款和条件:

 

的 公司董事协议中包含的主要条款包括以下内容:

 

的 公司没有固定的董事任期,根据2001年公司法和宪法,董事职位可以 在规定的情况下停止(例如,破产、定罪)。此外,董事可以通过提供 随时书面通知。
没有 已向任何董事发放与短期激励挂钩的薪酬形式。
的 以下是其他关键管理人员协议中包含的关键条款:

 

先生 西蒙·莫里斯

 

遗传 科技公司或莫里斯先生可以在前六个月内提供两周书面通知来终止雇佣协议 就业。此后通知期为4个月书面通知。基因技术公司可以自行选择付款 代替通知。
先生 莫里斯在年内与遗传技术有限公司及其相关法人团体竞争应受到限制 就业以及就业结束后最长24个月的期限。莫里斯先生还被禁止招揽遗传技术公司 员工的客户或供应商停止雇用或与公司开展业务。
先生 莫里斯的首席执行官雇佣协议还包含其性质协议的标准条款和条件,包括 保密、知识产权保留和休假。

 

先生 托尼·迪·彼得罗(2024年3月29日辞职)

 

遗传 科技公司或Di Pietro先生可以在前六个月内提供两周书面通知来终止雇佣协议 就业。此后通知期为4个月书面通知。基因技术公司可以自行选择付款 代替通知。
先生 Di Pietro在此期间与Genetic Technology Limited及其相关法人团体竞争应受到限制 雇佣期间以及雇佣结束后最长24个月的期限。迪·彼得罗先生也被禁止招揽遗传 技术员工的客户或供应商停止雇用或与公司开展业务。
先生 Di Pietro的CFO雇佣协议还包含其性质协议的标准条款和条件,包括 保密、知识产权保留和休假。

 

Ms. Kathryn Andrews (appointed March 25, 2024)

 

Genetic Technologies or Ms. Kathryn Andrews may terminate the employment agreement by providing one months written notice within the first six months of employment. Thereafter the notice period is 4 months written notice. Genetic Technologies may, at its own election, make payment in lieu of notice.
Ms. Andrews shall be subject to restrictions on competing with Genetic Technologies Limited and its related bodies corporate during the employment and for a period of up to 24 months after the employment ends. Ms. Andrews is also prevented from soliciting Genetic Technologies employees’ customers or suppliers to cease employment or conducting business with the Company.
Ms. Andrew’s CFO employment agreement otherwise contains standard terms and conditions for agreements of its nature, including confidentiality, retention of intellectual property and leave.

 

Mr. Carl Stubbings

 

Genetic Technologies or Mr. Stubbings may terminate the employment agreement by providing two weeks written notice within the first six months of employment. Thereafter the notice period is 4 months written notice. Genetic Technologies may, at its own election, make payment in lieu of notice.
Mr. Stubbings shall be subject to restrictions on competing with Genetic Technologies Limited and its related bodies corporate during the employment and for a period of up to 24 months after the employment ends. Mr. Stubbings is also prevented from soliciting Genetic Technologies employees’ customers or suppliers to cease employment or conducting business with the Company.
Mr. Stubbings’s CCO employment agreement otherwise contains standard terms and conditions for agreements of its nature, including confidentiality, retention of intellectual property and leave.

 

47
 

 

Mr. Kevin Camilleri

 

Genetic Technologies or Mr. Camilleri may terminate the employment agreement by providing two weeks written notice within the first six months of employment. Thereafter the notice period is 4 months written notice. Genetic Technologies may, at its own election, make payment in lieu of notice.
Mr. Camilleri shall be subject to restrictions on competing with Genetic Technologies Limited and its related bodies corporate during the employment and for a period of up to 12 months after the employment ends. Mr. Camilleri is also prevented from soliciting Genetic Technologies employees’ customers or suppliers to cease employment or conducting business with the Company.
Mr. Camilleri’s EasyDNA CEO employment agreement otherwise contains standard terms and conditions for agreements of its nature, including confidentiality, retention of intellectual property and leave.

 

The details of those Executives nominated as Key Management Personnel under section 300A of the Corporations Act 2001 have been disclosed in this Report. No other employees of the Company meet the definition of “Key Management Personnel” as defined in IAS 24 Related Party Disclosures, or “senior manager” as defined in the Corporations Act 2001.

 

Executive officers are those officers who were involved during the year in the strategic direction, general management or control of the business at a company or operating division level. The remuneration paid to Executives is set with reference to prevailing market levels and comprises a fixed salary, short-term incentives (which are linked to agreed key performance indicators), and an option or performance share component (long term incentive). Options/Performance shares are granted to Executives in line with their respective levels of experience and responsibility.

 

Share Based Payments

 

Option holdings and details of options exercised, granted, and forfeited, as part of remuneration

 

No options were issued under employee incentive scheme during the financial year ended June 30, 2024 and June 30, 2023. On December 21, 2020, the Company issued 5,000,000 options to Executives and 7,850,000 to other employees, under an employee incentive scheme. These options lapsed on December 1, 2023. No options were exercised during the financial years ending June 30, 2024, 2023 and 2022.

 

Details of the options held by the Executives and Directors nominated as Key Management Personnel at the year ended June 30, 2024 are set out below.

 

Option holdings of Key Management Personnel June 30, 2024

 

Options  Balance at start of the year   Granted as remuneration   Granted as part of cost of capital   Exercised   Lapsed   Balance at end of the year   Vested and exercisable 
Dr. Lindsay Wakefield   -    -    -    -    -    -    - 
Mr. Peter Rubinstein   -    -    -    -    -    -    - 
Dr. Jerzy Muchnicki   -    -    -    -    -    -    - 
Dr. Richard Allman   5,000,000    -    -    -    (5,000,000)   -    - 
Mr. Stanley Sack   -    -    -    -    -    -    - 
Mr. Mike Tonroe   -    -    -    -    -    -    - 
Mr. Carl Stubbings   -    -    -    -    -    -    - 
Mr. Kevin Camilleri   -    -    -    -    -    -    - 
Total   5,000,000    -    -    -    (5,000,000)   -    - 

 

48
 

 

The Company introduced a Staff Share Plan on November 30, 2001. On November 19, 2008, the shareholders of the Company approved the introduction of a new Employee Option Plan. Collectively, these Plans establish the eligibility of our employees and those of any subsidiaries, and of consultants and independent contractors to a participating company who are declared by the Board to be eligible, to participate. Broadly speaking, the respective Plans permits us, at the discretion of the Board, to issue traditional options (with an exercise price). The Plans conform to the IFSA Executive Share and Option Scheme Guidelines and, where participation is to be made available to staff who reside outside Australia, there may have to be modifications to the terms of grant to meet or better comply with local laws or practice.

 

As of June 30, 2024, there were no executives or employees holding options under the plan. All these options lapsed during the financial year ended June 30,2024.

 

During the year ended June 30, 2024, the Company did not record a share-based payments expense in respect of the options granted (2023: Nil).

 

Unlisted performance rights holdings and details of performance rights exercised, granted, and forfeited, as part of remuneration

 

Performance Rights are not currently quoted on the ASX and as such have no ready market value. The Performance Rights each grant the holder a right of grant of one ordinary Share in the Company upon vesting of the Performance Rights for nil consideration. Accordingly, the Performance Rights may have a fair value at the date of their grant. Various factors impact upon the value of Performance Rights including:

 

the period outstanding before the expiry date of the Performance Rights;
the underlying price or value of the securities into which they may be converted;
the proportion of the issued capital as expanded consequent upon conversion of the Performance Rights into Shares (i.e. whether or not the shares that might be acquired upon exercise of the options represent a controlling or other significant interest); and
the value of the shares into which the Performance Rights may be converted.

 

Key management personnel, being the recipients of the performance rights, must remain employed by the Company for the relevant performance right to vest.

 

No new performance rights were issued during the financial year (2023: Nil). No performance rights were exercised during the financial year (2023: Nil).

 

Valuation of performance rights granted in the year ended June 30, 2022

 

During the year ended June 30, 2022, the Board has approved for the following Performance Rights to be issued to the Key Management Personnel below:

 

20,000,000 Performance Rights to Mr. Carl Stubbings
20,000,000 Performance Rights to Mr. Kevin Camilleri

 

Note: As a result of the share consolidation that occurred on December 18, 2023 whereby the Company’s equity securities were consolidated on the basis of one (1) ordinary share for every 100 ordinary shares held, the number of performance rights held by Carl Stubbings and Kevin Camilleri were reduced to 200,000 each.

 

49
 

 

Performance hurdles

 

Key management personnel, being the recipients of the performance rights, must remain engaged by the Company at the time of satisfaction of the performance hurdle in order for the relevant Performance Right to vest.

 

The performance rights for key management personnel vest and are exercisable upon the Share price reaching A$0.016 while or greater for more than 15-day consecutive ASX trading days.

 

There are various formulae which can be applied to determining the theoretical value of performance rights (including the formula known as the Black-Scholes Model valuation formula and the Binomial model).

 

The Company commissioned an independent valuation of these performance rights. The independent valuer has applied the Binomial model in providing the valuation of the performance rights.

 

Inherent in the application of the Binomial model are a number of inputs, some of which must be assumed. The data relied upon in applying the Binomial model was:

 

a) exercise price being 0.0 cents per Performance Right for all classes;
b) VWAP hurdle for key management personnel (15 days consecutive share price hurdle) equaling A$0.016 for Performance Rights;
c) the continuously compounded risk-free rate is as per table below (calculated based on yield of Australian government bonds, as at the grant dates for a 2 or 3 year period matching the expected life of Performance Rights);
d) the expected option life of 3 years for key management personnel and 2 years for others; and
e) a volatility measure between 149% to 161%.

 

Based on the independent valuation of the performance rights, the Company agrees that the total value of these performance rights to be issued to each member of key management personnel (depending on the share price at issue) is as follows:

 

Performance rights issued during the year ended June 2022, vested in 2023

 

   Number of Performance Rights issued   Valuation (cents)  

Total fair value of Performance Rights

A$

  

 

Expense accounted for in 2023

A$

  

Expense accounted for during the year

A$

 
Mr. Carl Stubbings   20,000,000    0.52    103,104    34,368    34,462 
Mr. Kevin Camilleri   20,000,000    0.42    83,216    27,739    27,815 
Total   40,000,000         186,320    62,107    62,277 

 

50
 

 

Valuation of performance rights granted in prior years

 

Based on the independent valuation of the performance rights, the Company agrees that the total value of the outstanding performance rights issued to key management personnel (depending on the share price at issue) is as follows:

 

The values calculated as set out above are recognized as a share-based payment expense and included within general and administrative costs in the statement of profit or loss and other comprehensive income for the relevant period.

 

The following is the reconciliation of Performance Rights for the year ended June 30, 2024 held by Key Management Personnel:

 

Performance Rights  Balance at start of the year   Granted as remuneration   Share consolidation   Lapsed/ Forfeited   Balance at the end of year 
Dr. Lindsay Wakefield   5,000,000    -    -    (5,000,000)   - 
Mr. Peter Rubinstein   57,500,000    -    -    (57,500,000)   - 
Mr. Nicholas Burrows   5,000,000    -    -    (5,000,000)   - 
Dr. Jerzy Muchnicki   57,500,000    -    -    (57,500,000)   - 
Mr. Simon Morriss   60,000,000    -    -    (60,000,000)   - 
Mr. Carl Stubbings   20,000,000    -    (19,800,000)   -    200,000 
Mr. Kevin Camilleri   20,000,000    -    (19,800,000)   -    200,000 
Total   225,000,000    -    (39,600,000)   -    400,000 

 

Performance rights included in the balance at start of the financial year

 

The unlisted performance rights granted and outstanding as of June 30, 2024 are as follows:

 

   2024  

Fair Value

A$

   Expiration Date
Director             
Mr. Carl Stubbings   200,000    103,104   22-Sep-2024
Mr. Kevin Camilleri   200,000    83,216   22-Nov-2024
              
Balance at the end of the financial year   400,000    186,320    

 

51
 

 

The following is additional information relating to the performance rights granted, as of June 30, 2024:

 

Performance rights outstanding  Performance rights exercisable
Range of exercise prices  Number of Performance Rights   

Weighted average

exercise price

A$

   Remaining Weighted average contractual life (years)  

 

Number of Perf.

rights

 

Weighted average

exercise price

A$

 
A$0.00 - A$0.00   400,000     0.000    0.31   400,000   0.00 

 

Australian disclosure requirements: ordinary shares of Genetic Technologies Limited held by key management personnel at the date of this Directors’ report are as follows:

 

Ordinary Shares  Balance at start of the year1   Granted as remuneration   Received on exercised options   Other Changes2   Balance at the end of year 
Dr. Lindsay Wakefield   9,418,104    -    -    (9,323,922)   94,182 
Mr. Peter Rubinstein   308,132,009    -    -    (304,433,479)   3,698,530 
Mr. Nicholas Burrows   1,670,000    -    -    (1,653,300)   16,700 
Dr. Jerzy Muchnicki   224,685,885    -    -    (222,435,023)   2,250,862 
Dr. Richard Allman   553,338    -    -    (553,338)   - 
Mr. Tony Di Pietro   500,000    -    -    (500,000)   - 
Mr. Carl Stubbings   750,000    -    -    (750,000)   - 
Total   545,709,336    -    -    -    6,043,574 

 

1. Balance may include shares held prior to individuals becoming KMP. For individuals who became KMP during the period, the balance is as at the date they became KMP.

 

2. Other changes incorporate changes from disposals of ordinary share transactions, plus a share consolidation which took place in December 2023.

 

Indemnification and Insurance with respect to Directors

 

We are obligated pursuant to an indemnity agreement, to indemnify the current Directors and executive officers and former Directors against all liabilities to third parties that may arise from their position as Directors or officers of the Company and our controlled entities, except where to do so would be prohibited by law. In addition, the Company does currently carry insurance in respect of Directors’ and officers’ liabilities for current and former Directors, Company Secretary and executive officers or employees under certain circumstances as specified in the insurance policy.

 

Loans to Key Management Personnel

 

There have been no loans to KMP’s during the financial year or prior financial year.

 

Voting and comments at the Company’s 2023 Annual General Meeting

 

The Company received 77.79% of the vote in favor of its Remuneration Report for the 2023 financial year. The Company did not receive any specific feedback at the AGM on its remuneration policies.

 

(End of the Remuneration Report (Audited) for Australian Disclosure Requirements)

 

Other Australian Disclosure Requirements

 

Auditor’s Independence Declaration

 

There were no former partners or directors of Grant Thornton Audit Pty Ltd, the Company’s auditor, who were or were at any time during the financial year, an officer of the Company.

 

A copy of the auditor’s independence declaration under Section 307C of the Corporations Act 2001 in relation to the audit for the year ended June 30, 2024 is included in Exhibit 15.2 of this annual report on Form 20-F.

 

Directors’ resolution

 

The components of our directors’ report are incorporated in various places within this annual report on the Form 20-F.

 

This report is made in accordance with a resolution of directors.

 

/s/ Peter Rubinstein

 

Director Melbourne

 

September 30, 2024

 

52
 

 

Item 6.C Board Practices

 

The Board of Directors

 

Under the Company’s Constitution, its Board of Directors is required to comprise at least three Directors. As of the date of this Annual Report, our Board comprised three Directors.

 

The role of the Board includes:

 

(a) Reviewing and making recommendations in remuneration packages and policies applicable to directors, senior executives and consultants.
(b) Nomination of external auditors and reviewing the adequacy of external audit arrangements.
(c) Establishing the overall internal control framework over financial reporting, quality and integrity of personnel and investment appraisal. In establishing an appropriate framework, the board recognized that no cost-effective internal control systems will preclude all errors and irregularities.
(d) Establishing and maintaining appropriate ethical standards in dealings with business associates, suppliers, advisers and regulators, competitors, the community and other employees.
(e) Identifying areas of significant business risk and implementing corrective action as soon as practicable after a risk is identified.
(f) Nominating audit and remuneration committee members.

 

The Board meets to discuss business regularly throughout the year, with additional meetings being held when circumstances warrant. Included in the table below are details of the meetings of the Board and the sub-committees of the Board that were held during the 2024 financial year.

 

   Directors’ meetings   Audit & Risk Committee meetings   Remuneration Committee meetings 
   Attended   Eligible   Attended   Eligible   Attended   Eligible 
Dr. Lindsay Wakefield   11    11    6    6    2    2 
Dr. Jerzy Muchnicki   11    11    -    -    -    - 
Mr. Peter Rubinstein   11    11    6    6    2    2 
Mr. Nicholas Burrows   6    6    3    3    1    1 

 

Committees of the Board

 

The Board has established an Audit & Risk Committee which operates under a specific Charter approved by the Board. It is the Board’s responsibility to ensure that an effective internal control framework exists within the Company. This includes internal controls to deal with both the effectiveness and efficiency of significant business processes, the safeguarding of assets, the maintenance of proper accounting records, and the reliability of financial information as well as non-financial considerations such as the benchmarking of operational key performance indicators.

 

The Board has delegated the responsibility for the establishment and maintenance of a framework of internal control and ethical standards for the management of the Company to the Audit & Risk Committee. The Audit & Risk Committee also provides the Board with assurance regarding the reliability of financial information for inclusion in the financial reports. As at date of this report, all of the members of the Audit & Risk Committee are independent Non-Executive Directors.

 

The Remuneration Committee is, amongst other things, responsible for determining and reviewing remuneration arrangements for the Directors, the Chief Executive Officer and the Senior Leadership Team. The Chairman of the Committee is an independent non- executive director.

 

The Remuneration Committee assesses the appropriateness of the nature and amount of remuneration paid to Directors and Executives on a periodic basis by reference to relevant employment market conditions, with the overall objective of ensuring maximum shareholder benefit from the retention of a high-quality Board and senior leadership team.

 

53
 

 

Committee membership

 

As at the date of this Report, the composition of these two Sub-Committees are:

 

Audit & Risk Committee:    
    Mr. Peter Rubinstein
    Dr. Lindsay Wakefield - Chairman of the Committee
     
Remuneration Committee:   Dr. Lindsay Wakefield — Chairman of the Committee
    Mr. Peter Rubinstein

 

Compliance with NASDAQ Rules

 

NASDAQ listing rules require that the Company disclose the home country practices that we will follow in lieu of compliance with NASDAQ corporate governance rules. The following describes the home country practices and the related NASDAQ rule:

 

Majority of Independent Directors: The Company follows home country practice rather than NASDAQ’s requirement in Marketplace Rule 4350(c) (1) that the majority of the Board of each issuer be comprised of independent directors as defined in Marketplace Rule 4200. As of the date of this Annual Report, there were two independent Directors namely Mr. Peter Rubinstein and Dr. Lindsay Wakefield which led to our Board of Directors being comprised of a majority of independent directors.

 

Compensation of Officers: The Company follows home country practice rather than NASDAQ’s requirement in Marketplace Rule 4350(c) (3) that chief executive compensation be determined or recommended to the Board by the majority of independent directors or a compensation committee of independent directors. Similarly, compensation of other officers is not determined or recommended to the Board by a majority of the independent directors or a compensation committee comprised solely of independent directors. These decisions are made by the Company’s remuneration committee.

 

Nomination: The Company follow home country practice rather than NASDAQ’s requirement in Marketplace Rule 4350(c)(4) that director nominees be selected or recommended by a majority of the independent directors or by a nominations committee comprised of independent directors. These decisions are made by the Company’s full Board which is comprised of a majority of independent directors which constitute Mr. Peter Rubinstein, Dr. Jerzy Muchnicki and Dr. Lindsay Wakefield.

 

The ASX does not have a requirement that each listed issuer have a nominations committee or otherwise follow the procedures embodied in NASDAQ’s Marketplace Rule. Furthermore, no law, rule or regulation of the ASIC has such a requirement nor does the applicable corporate law legislation. Accordingly, selections or recommendations of director nominees by a committee that is not comprised of a majority of directors that are not independent is not prohibited by the laws of Australia.

 

Quorum: The Company follows home country practice rather than NASDAQ’s requirement in Marketplace Rule 4350(f) that each issuer provides for a quorum of at least 33 1/3 percent of the outstanding shares of the issuer’s ordinary stock (voting stock). Pursuant to the Company’s Constitution it is currently required to have a quorum for a general meeting of three persons. The practice followed by the Company is not prohibited by Australian law.

 

Shareholder Approval for Capital Issuance: The Company has elected to follow certain home country practices in lieu of NASDAQ Marketplace Rule 5635. For example, the Company is entitled to an annual 15% of capital placement capacity under ASX Listing Rule 7.1 without shareholder approval. If this amount of annual entitlement is aggregated with an additional placement of Ordinary Shares, including through the grant of options over Ordinary Shares, that exceeds 20% of the outstanding share capital, only the excess over the 15% annual allowance requires shareholder approval under Australian law. Such home country practice is not prohibited by the laws of Australia.

 

54
 

 

Board diversity matrix

 

Board Diversity Matrix (As of June 30, 2024)
Country of Principal Executive Offices  Australia           
Foreign Private Issuer  Yes           
Disclosure Prohibited under Home Country Law  No           
Total Number of Directors  3           

 

   Female  Male  Non-Binary  Did Not Disclose Gender
Part I: Gender Identity            
Directors  -  2  -  -
Part II: Demographic Background            
Underrepresented Individual in Home Country Jurisdiction  1         
LGBTQ+  -         
Did Not Disclose Demographic Background  -         

 

As at 7th August 2023 the Company had less than 5 Directors and at that date does not have a diverse director on the Board. Accordingly, we are not in compliance with Nasdaq Rule 5605(f) as we did not meet the applicable board diversity objective by the end of the phase- in period on that date.

 

The Company’s Directors acknowledge the importance of board diversity and this is considered as part of the Company’s regular director skills assessment process. In considering the output from this skills assessment process, the Board has formally identified the need to address and prioritize Board diversity. Accordingly, one of the key People and Culture strategic pillar initiatives from the Company’s current strategic plan, is to identify and appoint a suitable female director over the course of the financial year ended June 30, 2025. The Company’s Remuneration Committee will oversee this process, consistent with its Charter, and will provide a formal recommendation to the Board.

 

Duties and Functions of Directors

 

Under the laws of the Australia, the Company’s directors owe fiduciary duties to the Company, including duty to act honestly and in good faith in what the directors believe to be in the best interests of the company, duty to exercise powers for a proper purpose and directors shall not act, or agree to act, in a matter that contravenes the applicable law or the Memorandum and Articles of Association, duty to exercise the care, diligence and skill that a reasonable director would exercise in the circumstances, and duty to avoid conflicts of interest. In fulfilling their duty of care to the Company, the Company’s directors must ensure compliance with the Company’s Memorandum and Articles of Association, as amended and restated from time to time. The Company has the right to seek damages if a duty owed by its directors is breached. In limited exceptional circumstances, a shareholder may have the right to seek damages in the Company’s name if a duty owed by the Company’s directors is breached. The functions and powers of the Board include, among other things, (i) convening shareholder meetings at such times and in such manner and places as the director considers necessary or desirable, (ii) declaring dividends, (iii) appointing directors or officers and determining their terms of offices and responsibilities, and (iv) approving the transfer of shares of the Company, including the registering of such shares in the Company’s share register.

 

Terms of Directors and Officers

 

The Company’s officers are elected by and serve at the discretion of the Board. Each director holds office for the term fixed by the resolution of shareholders or the resolution of directors appointing him until such time as his successor takes office or until the earlier of his death, resignation or removal from office by resolution of directors with or without cause or by resolution of shareholders for cause. The directors may at any time appoint any person to be a director either to fill a vacancy or as an addition to the existing directors. Where the directors appoint a person as director to fill a vacancy, the term shall not exceed the term that remained when the person who has ceased to be a director ceased to hold office. A vacancy in relation to directors occurs if a director dies or otherwise ceases to hold office prior to the expiration of his term of office.

 

Interested Transactions

 

A director may, subject to any separate requirements for Audit Committee approval under applicable laws or applicable Nasdaq Stock Market Listing Rules, vote on a matter relating to the transaction in which he or she is interested, provided that the interest of any directors in such transaction is disclosed by him or her to all other directors.

 

Item 6.D Employees

 

As of the date of this Annual Report, the Company comprising the Company and its subsidiaries, employed 60 full-time equivalent employees. The number of full-time equivalent employees as of the end of each respective financial year ended June 30 are as follows:

 

2024    58 
2023    60 
2022    52 

 

Item 6.E Share Ownership

 

Except as specifically noted, the following table sets forth information with respect to the beneficial ownership of our ordinary shares as of the date of this annual report by:

 

  each of our directors and executive officers; and
     
  each of our principal shareholders who beneficially own more than 5% of our total outstanding ordinary shares;

 

The calculations in the table below are based on 145,417,246 Class A Ordinary Shares outstanding as of September 25, 2024. Unless otherwise indicated, each person has sole investment and voting power with respect to all shares shown as beneficially owned. The term “beneficial owner” of securities refers to any person who, even if not the record owner of the securities, has or shares the underlying benefits of ownership. These benefits include the power to direct the voting or the disposition of the securities or to receive the economic benefit of ownership of the securities. A person also is considered to be the “beneficial owner” of securities that the person has the right to acquire within 60 days by option or other agreement. Beneficial owners include persons who hold their securities through one or more trustees, brokers, agents, legal representatives or other intermediaries, or through companies in which they have a “controlling interest”, which means the direct or indirect power to direct the management and policies of the entity. The Company’s directors and executive officers do not have different voting rights than other shareholders of the Company.

 

Name of Beneficial Owner  Number of
Shares
   % of Class 
Five Percent Holders other than our Directors and Officers        
         
Directors and Named Executive Officers (1):        
Dr. Lindsay Wakefield   94,182    0.01%
Dr. Jerzy Muchnicki   2,250,862    1.50%
Mr. Peter Rubinstein   3,698,530    2.50%

 

(1) The relevant interest of the directors in the share capital of the Company as notified by them to the Australian Securities Exchange in accordance with section 205G(1) of the Corporations Act 2001 as of the date of this Annual Report is as follows:

 

Item 6.F Disclosure of a registrant’s action to recover erroneously awarded compensation.

 

Not applicable. 

 

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Item 7. Major Shareholders and Related Party Transactions

 

Item 7.A Major Shareholders

 

As at the date of this Annual Report, no shareholders hold a beneficial ownership of 5% or more of our voting securities.

 

The number of Ordinary Shares on issue in Genetic Technologies Limited as of the date of this Annual Report was 145,417,246. The number of holders of Ordinary Shares in Genetic Technologies Limited as of the date of this Annual Report was approximately 4,528 (September 25, 2024) 

 

The Company is not aware of any direct or indirect ownership or control of it by another corporation(s), by any foreign government or by any other natural or legal person(s) severally or jointly. Principal shareholders do not enjoy any special or different voting rights from those to which other holders of Ordinary Shares are entitled. The Company does not know of any arrangements, the operation of which may at a subsequent date result in a change in control of the Company.

 

Record Holders

 

As of September 25, 2024, there were 4,5284 holders of record of our ordinary shares, of which 33 record holders, holding approximately 0.01% of our ordinary shares, had registered addresses in the United States. These numbers are not representative of the number of beneficial holders of our shares nor are they representative of where such beneficial holders reside, since many of these ordinary shares were held of record by brokers or other nominees. The majority of trading by our U.S. investors is done by means of ADSs that are held of record by HSBC Custody Nominees (Australia) Ltd., which held 71.13% of our ordinary shares as of such date.

 

Item 7.B Related Party Transactions

 

During the year ended June 30, 2024, 2023 and 2022, the only transactions between entities within the Company and other related parties occurred, are as listed below. Except where noted, all amounts were charged on similar to market terms and at commercial rates.

 

Transactions within the Company and with other related parties

 

During the year ended June 30, 2024, other than compensation paid to directors and other members of key management personnel, see “Item 6.B Compensation”, the only transactions between entities within the Company and other related parties are as listed below. Except where noted, all amounts were charged on similar to market terms and at commercial rates.

 

Mr. Peter Rubinstein (Non-Executive Director and Chairman)

 

During the financial year ended June 30, 2020, the Board approved to obtain consulting services in relation to capital raises, compliance, NASDAQ hearings and investor relations from its Non-Executive Director and current Chairman, Mr. Peter Rubinstein. The services procured were through Mr. Peter Rubinstein’s associate entity ValueAdmin.com Pty Ltd and amounted to A$45,000 (2023: A$60,000), which is included as part of the cash salary and fees in the remuneration report as at June 30, 2024.

 

Dr. Jerzy Muchnicki (Non-Independent Non-Executive Director) 

 

During the financial year ended June 30, 2022, the Board approved to obtain consulting services in relation to PRS and Germline Integration; Epigenetics; Somatic Testing; NIPT; Carrier testing and related marketing advice from its Non-Independent Non-Executive Director, Dr. Jerzy Muchnicki. The services procured were through Dr. Jerzy Muchnicki’s private consultancy and amounted to A$22,692 (2023: Nil), which is included as part of the cash salary and fees in the remuneration report as at June 30, 2024.

 

Mr. Kevin Camilleri (Chief Executive Officer of EasyDNA) 

 

During the financial year ended June 30, 2022, the Company agreed to lease its offices in Malta at 36 Triq ir-Russell, Kappara from Kevin Camilleri. The lease commenced August 13, 2021 and ends December 31, 2024. Extension beyond December 31, 2024 requires a new lease to be entered. After the first year, the lease can be terminated by the lessee, at any time, by providing three months’ notice. A Euro 4,500 refundable security deposit was paid at inception. Annual rents during the term of the lease are fixed as follows; years ending December 31, 2021 (August 13, 2021 to December 31, 2021) Euro 6,920, 2022 Euro 18,900, 2023 Euro 19,845 and 2024 Euro 20,844. Rent paid amounted to A$34,335 (2023: A$31,046 and 2022: A$29,336).

 

There were no transactions with parties related to Key Management Personnel during the year other than those disclosed above  .

 

Performance Rights Issuance

 

During the year ended June 30, 2022 the Board has approved for the following Performance Rights to be issued to the Key Management Personnel below:

 

20,000,000 Performance Rights to Mr. Carl Stubbings
20,000,000 Performance Rights to Mr. Kevin Camilleri

 

The Company has accounted for these Performance Rights in accordance with its accounting policy for share-based payment transactions, recording A$124,177 (2023: A$125,500, 2022: A$437,508) of associated expense in the current reporting period. During the financial year ended June 30, 2024 the Company undertook a share consolidation of its equity securities on the basis of one (1) for every 100 securities held, as a result the Performance Rights held by Mr. Carl Stubbings and Mr. Kevin Camilleri following the share consolidation reduced to 200,000 each.

 

Item 7.C Interests of Experts and Counsel

 

Not applicable.

 

Item 8. Financial Information

 

Item 8.A Consolidated Statements and Other Financial Information

 

The information included in Item 18 of this Annual Report is referred to and referenced into this Item 8.A.

 

Legal Proceedings

 

We are not currently a party to any legal proceedings. From time to time, we may be a party to litigation or subject to claims incident to the ordinary course of business. Although the results of litigation and claims cannot be predicted with certainty, we currently believe that the final outcome of these ordinary course matters will not have a significant effect on our financial position or profitability. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors.

 

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Dividends

 

Until our businesses are profitable beyond our expected research and development needs, our Directors are unlikely to be able to recommend that any dividend be paid to our shareholders. Our Directors will not resolve a formal dividend policy until we generate profits. Our current intention is to reinvest our income in the continued development and expansion of our businesses.

 

Item 8.B Significant Changes

 

On July 26, 2024 the Company announced that it was restructuring its operating model in order to significantly reduce ongoing operating losses and cash outflows. As part of the restructure the Company will be transitioning to a capital light operating model under which activities such as R&D and new product development, IP creation, laboratory testing, and the introduction of predictive genetic testing products that previously had been carried out in-house, would be variously ceased, outsourced and/or undertaken through partnering. Going forward the focus of the Company would be on growing revenues in its EasyDNA and AffinityDNA business, and commercialization of geneType in the U.S. through strategic partnerships.

 

Item 9. The Offer and Listing

 

Item 9.A Offer and Listing Details

 

The Company’s Ordinary Shares have been listed on the Australian Securities Exchange (the “ASX”) since July 1987 and trade there under the symbol GTG. The Company’s securities are also listed on NASDAQ’s Capital Market (under the ticker GENE) in the form of American Depositary Shares, each of which represents 30 Ordinary Shares.

 

Item 9.B Plan of Distribution

 

Not applicable.

 

Item 9.C Markets

 

See “Item 9.A Offer and Listing Details.”

 

Item 9.D Selling Shareholders

 

Not applicable.

 

Item 9.E Dilution

 

Not applicable.

 

Item 9.F Expenses of the Issue

 

Not applicable.

 

Item 10. Additional Information

 

Item 10.A Share Capital

 

Not applicable.

 

Item 10.B Our Constitution

 

Our registration number is 009 212 328. Our Constitution has been posted on the Company’s website and has been filed with the SEC.

 

Purposes and Objects

 

Our Constitution does not specify any purposes or objects of the Company.

 

The Powers of the Directors

 

Under the provisions of our Constitution our Directors may exercise all of the powers of our company, other than those that are required by our Constitution or the Corporations Act 2001 of Australia to be exercised at a general meeting of shareholders. A director may participate in a meeting and vote on a proposal, arrangement or contract in which he or she is materially interested, so long as the director’s interest is declared in accordance with the Corporations Act 2001. The authority of our directors to enter into borrowing arrangements on our behalf is not limited, except in the same manner as any other transaction by us.

 

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Rights Attached to Our Ordinary Shares

 

The concept of authorized share capital no longer exists in Australia and as a result, our authorized share capital is unlimited. All our outstanding Ordinary Shares are validly issued, fully paid and non-assessable. The rights attached to our Ordinary Shares are as follows:

 

Dividend rights. If our board of directors recommends a dividend, registered holders of our Ordinary Shares may declare a dividend by ordinary resolution in a general meeting. The dividend, however, cannot exceed the amount recommended by our board of directors. Our board of directors may declare an interim dividend.

 

Voting rights. Holders of Ordinary Shares have one vote for each Ordinary Share held on all matters submitted to a vote of shareholders. Such voting rights may be affected by the grant of any special voting rights to the holders of a class of shares with preferential rights that may be authorized in the future.

 

The quorum required for an ordinary meeting of shareholders consists of at least three shareholders represented in person or by proxy. A meeting adjourned for lack of a quorum generally is adjourned to the same day in the following week at the same time and place or any time and place as the directors designate in a notice to the shareholders. At the reconvened meeting, the required quorum consists of any two members present in person or by proxy.

 

An ordinary resolution, such as a resolution for the declaration of dividends, requires approval by the holders of a majority of the voting rights represented at the meeting, in person, by proxy or by written ballot and voting thereon. Under our Constitution, a special resolution, such as amending our Constitution, approving any change in capitalization, winding-up, authorization of a class of shares with special rights, or other changes as specified in our Constitution, requires approval of a special majority, representing the holders of no less than 75% of the voting rights represented at the meeting in person, by proxy or by written ballot, and voting thereon.

 

Pursuant to our Constitution, our directors are elected at our annual general meeting of shareholders by a vote of the holders of a majority of the voting power represented and voting at such meeting.

 

Rights in our profits. Our shareholders have the right to share in our profits distributed as a dividend and any other permitted distribution.

 

Rights in the event of liquidation. In the event of our liquidation, after satisfaction of liabilities to creditors, our assets will be distributed to the holders of Ordinary Shares in proportion to the nominal value of their holdings. This right may be affected by the grant of preferential dividend or distribution rights to the holders of a class of shares with preferential rights that may be authorized in the future.

 

Changing Rights Attached to Shares

 

According to our Constitution, in order to change the rights attached to any class of shares, unless otherwise provided by the terms of the class, such change must be adopted by a general meeting of the shareholders and by a separate general meeting of the holders of the affected class with a majority of 75% of the voting power participating in such meeting.

 

Annual and Extraordinary Meetings

 

Our Board of Directors must convene an annual meeting of shareholders at least once every calendar year, within five months of our last fiscal year-end. Notice of at least 28 days prior to the date of the meeting is required. An extraordinary meeting may be convened by the board of directors, it decides or upon a demand of any directors, or of one or more shareholders holding in the aggregate at least five percent of our issued capital. An extraordinary meeting must be called not more than 21 days after the request is made. The meeting must be held not later than two months after the request is given.

 

Limitations on the Rights to Own Securities in Our Company

 

Neither our Constitution nor the laws of the Commonwealth of Australia restrict in any way the ownership or voting of our shares. However, acquisitions and proposed acquisitions of securities in Australian companies may be subject to review and approval by the Australian Federal Treasurer under the Takeovers Act as described under Item 10.D below.

 

Changes in Our Capital

 

Pursuant to the Listing Rules of the ASX, without shareholder approval, we may not issue more than 25% of our outstanding Ordinary Shares in any twelve month period other than by a pro rata rights offering or a share purchase plan offer (of shares with a value at the issue price of up to A$30,000 per shareholder to a maximum of 30% of our outstanding shares) in each case to the then existing shareholders.

 

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Takeovers Act

 

There are no limitations, either under the laws of Australia or under the Company’s Constitution, to the right of non-residents to hold or vote our Technologies Ordinary Shares other than the Commonwealth Foreign Acquisitions and Takeovers Act 1975 (the “Takeovers Act”). The Takeovers Act may affect the right of non-Australian residents, including U.S. residents, to hold Ordinary Shares but does not affect the right to vote, or any other rights associated with, any Ordinary Shares held in compliance with its provisions. Acquisitions of shares in Australian companies by foreign interests are subject to review and approval by the Treasurer of the Commonwealth of Australia under the Takeovers Act. The Takeovers Act applies to any acquisition of outstanding shares of an Australian company that exceeds, or results in a foreign person or persons controlling the voting power of more than a certain percentage of those shares. The thresholds are 15% where the shares are acquired by a foreign person, or Company of associated foreign persons, or 40% in aggregate in the case of foreign persons who are not associated. Any proposed acquisition that would result in an individual foreign person (with associates) holding more than 15% must be notified to the Treasurer in advance of the acquisition. There are statutory limitations in Australia on foreign ownership of certain businesses, such as banks and airlines, not relevant to the Company. However, there are no other statutory or regulatory provisions of Australian law or Australian Securities Exchange requirements that restrict foreign ownership or control of the Company.

 

Corporations Act 2001

 

As applied to the Company, the Corporations Act 2001 prohibits any legal person (including a corporation) from acquiring a relevant interest in Ordinary Shares if after the acquisition that person or any other person’s voting power in the Company increases from 20% or below to more than 20%, or from a starting point that is above 20% and below 90%.

 

This prohibition is subject to a number of specific exceptions set out in section 611 of the Corporations Act 2001 which must be strictly complied with to be applicable.

 

In general terms, a person is considered to have a “relevant interest” in a share in the Company if that person is the holder of that share, has the power to exercise, or control the exercise of, a right to vote attached to that share, or has the power to dispose of, or to control the exercise of a power to dispose of that share.

 

It does not matter how remote the relevant interest is or how it arises. The concepts of “power” and “control” are given wide and extended meanings in this context in order to deem certain persons to hold a relevant interest. For example, each person who has voting power above 20% in a company or a managed investment scheme which in turn holds shares in the Company is deemed to have a relevant interest in those shares. Certain situations (set out in section 609 of the Corporations Act 2001) which would otherwise constitute the holding of a relevant interest are excluded from the definition.

 

A person’s voting power in the Company is that percentage of the total votes attached to Ordinary Shares in which that person and its associates (as defined in the Corporations Act 2001) holds a relevant interest.

 

Item 10.C Material Contracts

 

During the financial years ending June 30, 2022, 2023, and 2024, the Company entered into agreements with H.C. Wainwright & Co, to act as placement agents to the share offerings made on multiple occasions the Company raised a total of A$10,284,157 before costs   of the transactions. Towards the cost of these transactions, the Company issued the following securities, which have been adjusted to reflect the one for 100 share consolidation that occurred during the year:

 

487,500 warrants issued to H.C. Wainwright & Co. LLC on November 24, 2021, exercisable at US$0.109375 expiring 5 years after date of issue, amounting to A$476,297. The warrants are exercisable for fully paid ordinary shares.
1,500,000 warrants issued to H.C. Wainwright & Co. LLC, exercisable at US$0.27083 expiring 5 years after date of issue, amounting to A$134,956. The warrants are exercisable for fully paid ordinary shares.
1,950,000 warrants issued to H.C. Wainwright & Co. LLC, subject to shareholder approval scheduled for the 2024 Annual General Meeting (AGM), exercisable at US$0.083 expiring 5 years after date of issue, amounting to A$101,991. The warrants are exercisable for fully paid ordinary shares.

 

As at June 30, 2024, the following warrants remain outstanding and exercisable and relate to capital raising activities prior to June 30, 2022.

 

401,143 warrants issued to H.C. Wainwright & Co. LLC on April 3, 2020, exercisable at US$0.365 each and expiring on April 1, 2025, amounting to A$175,137. The warrants are exercisable for fully paid ordinary shares.
281,775 warrants issued to H.C. Wainwright & Co. LLC on April 22, 2020, exercisable at US$0.417 each and expiring on April 19, 2025, amounting to A$149,693. The warrants are exercisable for fully paid ordinary shares.
1,560,000 warrants issued to H.C. Wainwright & Co. LLC on December 21, 2020 exercisable at US$0.4166 expiring on December 21, 2025, amounting to A$1,462,442. The warrants are exercisable for fully paid ordinary shares.
399,750 warrants issued to H.C. Wainwright & Co. LLC on December 21, 2020, exercisable at US$1.04 expiring on December 21, 2025, amounting to A$360,017. The warrants are exercisable for fully paid ordinary shares

 

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The Company executed an acquisition agreement (“Acquisition Agreement”) on July 19, 2021 to acquire the direct-to- consumer eCommerce business and distribution rights associated with General Genetics Corporation and its associated brands trading as EasyDNA, from BelHealth Investment Fund LP. The Acquisition Agreement provides for the acquisition of all brands, websites and agency reseller agreements associated with EasyDNA. This includes over 70 websites in 40 countries and six brand identities. Under the terms of the Acquisition Agreement, the Company acquired 100% of EasyDNA’s brands and assets within the General Genetics Corporation business for a purchase price of US$4 million, comprising cash consideration of US$2.5 million and US$1.5 million of ADSs.

 

The Company executed an asset purchase agreement (“APA”) on July 14, 2022 to acquire the direct-to-consumer eCommerce business, laboratory testing and distribution agreements associated with AffinityDNA. The APA provides for the acquisition of all brands and websites associated with AffinityDNA. This includes the AffinityDNA Amazon sales channel rights. Under the terms of the APA, the Company acquired 100% of AffinityDNA’s brands and assets for a purchase price of GBP555,000, comprising cash consideration of GBP227,500 on completion and GBP227,500 payable in July 2023 subject to the AffinityDNA business attaining certain financial performance parameters. The second payment was payable on the achievement of a gross profit target for the 12-month period from the acquisition date. This target was not achieved and therefore no further payment is to be made in respect of the acquisition of AffinityDNA.

 

There were no other material contracts entered into during the two years preceding the date of this Annual Report which were outside the ordinary course of business.

 

Item 10.D Exchange Controls

 

Under existing Australian legislation, the Reserve Bank of Australia does not inhibit the import and export of funds, and, generally, no permission is required to be given to the Company for the movement of funds in and out of Australia. However, payments to or from (or relating to) Iraq, its agencies or nationals, the government or a public authority of Libya, or certain Libyan undertakings, the authorities in the Federal Republic of Yugoslavia (Serbia and Montenegro) or their agencies, the Taliban (also referred to as the Islamic Emirate of Afghanistan), or the National Union for the Total Independence of Angola (also known as UNITA), its senior officials or the adult members of their immediate families, may not be made without the specific approval of the Reserve Bank of Australia.

 

Accordingly, at the present time, remittances of any dividends, interest or other payment by the Company to non-resident holders of our securities in the U.S. are not, subject to the above, restricted by exchange controls or other limitations.

 

Item 10.E Taxation

 

The following summary is based on the tax laws of the United States (including the Internal Revenue Code of 1986, as amended, or the Code, its legislative history, existing and proposed regulations thereunder, published rulings and court decisions) and on the Australian tax law and practice, in each case as in effect on the date hereof. In addition, this summary is based on the Convention between the Government of the United States of America and the Government of Australia for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income, signed on August 6, 1982, as amended and currently in force, or the. The foregoing laws and legal authorities as well as the Treaty are subject to change (or changes in interpretation), possibly with retroactive effect. Finally, this summary is based in part upon the representations of our ADS Depositary and the assumption that each obligation in the Deposit Agreement and any related agreement will be performed in accordance with its terms.

 

The discussion does not address any aspects of U.S. taxation other than federal income taxation or any aspects of Australian taxation other than federal income taxation, stamp duty and goods and services tax. This discussion does not necessarily address all aspects of U.S. or Australian federal tax considerations that may be important to particular investors in light of their individual investment circumstances.

 

Prospective investors are urged to consult their tax advisers regarding the U.S. and Australian federal, state and local tax consequences and any other tax consequences of owning and disposing of ADSs and Ordinary Shares.

 

Australian Tax Consequences

 

In this section, we discuss Australian tax considerations that apply to non-Australian tax residents who are residents of the United States with respect to the ownership and disposal by the absolute beneficial owners of ADSs. This summary does not discuss any foreign or state tax considerations, other than stamp duty.

 

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Nature of ADSs for Australian Taxation Purposes

 

ADSs held by a U.S. holder will be treated for Australian taxation purposes as being held under a “bare trust” for that holder. Consequently, the underlying Ordinary Shares will be regarded as owned by the ADS holder for Australian income tax and capital gains tax purposes. Dividends paid on the underlying Ordinary Shares will also be treated as dividends paid to the ADS holder, as the person beneficially entitled to those dividends. Therefore, in the following analysis, we discuss the tax consequences to non-Australian resident holders of Ordinary Shares which, for Australian taxation purposes, will be the same as to U.S. holders of ADSs.

 

Taxation of Dividends

 

Australia operates a dividend imputation system under which dividends may be declared to be “franked” to the extent of tax paid on company profits. Fully franked dividends are not subject to dividend withholding tax. Dividends payable by our company to non-Australian resident stockholders will be subject to dividend withholding tax, to the extent the dividends are unfranked. Dividend withholding tax will be imposed at 30%, unless a stockholder is a resident of a country with which Australia has a double taxation agreement. Under the provisions of the Treaty, the Australian tax withheld on unfranked dividends paid by us to which a resident of the United States is beneficially entitled is generally limited to 15% if the U.S. resident holds less than 10% of the voting rights of our company, unless the shares are effectively connected to a permanent establishment or fixed base in Australia through which the stockholder carries on business or provides independent personal services, respectively. Where a U.S. corporate resident holds 10% or more of the voting rights of our company, the withholding tax rate is reduced to 5%.

 

Tax on Sales or other Dispositions of Shares - Capital Gains Tax

 

Non-Australian resident stockholders who hold their shares in us on capital account will not be subject to Australian capital gains tax on any gain made on a sale or other disposal of our shares, unless they hold 10% or more of our issued capital and the Company holds real property situated in Australia, the market value of which is 50% or more of the market value of the Company. The Australian Taxation Office maintains the view that the Treaty does not limit Australian capital gains tax. Australian capital gains tax applies to net capital gains charged at a taxpayer’s marginal tax rate but, for certain stockholders, a discount of the capital gain may apply if the shares have been held for 12 months or more. For individuals, this discount is 50%. For superannuation funds, the discount is 33%. There is no discount for a company that derives a net capital gain. Net capital gains are calculated after deducting capital losses, which may only be offset against such gains.

 

Tax on Sales or other Dispositions of Shares - Stockholders Holding Shares on Revenue Account

 

Some non-Australian resident stockholders may hold shares on revenue rather than on capital account, for example, share traders. These stockholders may have the gains made on the sale or other disposal of the shares included in their assessable income under the ordinary income provisions of the income tax law, if the gains are sourced in Australia. Non-Australian resident stockholders assessable under these ordinary income provisions in respect of gains made on shares held on revenue account would be assessed for those gains at the Australian tax rates for non-Australian residents, which start at a marginal rate of 32.5%. Some relief from the Australian income tax may be available to non-Australian resident stockholders under the Treaty, for example, because the stockholder derives business profits not through a permanent establishment in Australia. To the extent an amount would be included in a non- Australian resident stockholder’s assessable income under both the capital gains tax provisions and the ordinary income provisions, the capital gain amount would generally be reduced, so that the stockholder would not be subject to double tax on any part of the income gain or capital gain.

 

Dual Residency

 

If a stockholder were a resident of both Australia and the United States under the respective domestic taxation laws of those countries, that stockholder may be subject to tax as an Australian resident. If, however, the stockholder is determined to be a U.S. resident for the purposes of the Treaty, the Australian tax would be subject to limitation by the Treaty. Stockholders should obtain specialist taxation advice in these circumstances.

 

Stamp Duty

 

Any transfer of shares through trading on the Australian Securities Exchange, whether by Australian residents or foreign residents, is not subject to stamp duty within Australia.

 

Australian Death Duty

 

Australia does not have estate or death duties. Further, no capital gains tax liability is realized upon the inheritance of a deceased person’s shares. However, the subsequent disposal of the shares by beneficiaries may give rise to a capital gains tax liability.

 

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Goods and Services Tax

 

The issue or transfer of shares will not incur Australian goods and services tax and does not require a stockholder to register for Australian goods and services tax purposes.

 

United States Federal Income Taxation

 

The following discussion is a summary of U.S. federal income tax considerations generally applicable to the ownership and disposition of the ADSs or Ordinary Shares by a U.S. holder (as defined below). This summary applies only to U.S. holders that hold such ADSs or Ordinary Shares as capital assets (generally, property held for investment) for U.S. federal income tax purposes. This summary does not address all U.S. federal income tax considerations that may be relevant to a particular U.S. holder and does not represent a detailed discussion of all of the U.S. federal income tax considerations applicable to a holder of our ADSs or Ordinary Shares that may be subject to special tax rules including, without limitation:

 

banks, financial institutions or insurance companies;
   
brokers, dealers or traders in securities, currencies, commodities, or notional principal contracts;
   
tax-exempt entities or organizations, including an “individual retirement account” or “Roth IRA” as defined in Section 408 or 408A of the Code (as defined below), respectively;
   
real estate investment trusts, regulated investment companies or grantor trusts;
   
persons that hold ADSs or Ordinary Shares as part of a “hedging,” “integrated,” “wash sale” or “conversion” transaction or as a position in a “straddle” for U.S. federal income tax purposes;
   
S corporations, partnerships, or other entities or arrangements classified as passthrough entities for U.S. federal income tax purposes, or U.S. holders who hold the ADSs or Ordinary Shares through such an entity;
   
certain former citizens or long-term residents of the United States;
   
persons that received ADSs or Ordinary Shares pursuant to the exercise of any employee share option or otherwise as compensation for the performance of services;
   
persons who have elected mark-to-market accounting;
   
holders that own or have owned directly, indirectly, or through attribution 10% or more of the voting power or value of ADSs or Ordinary Shares; and
   
holders that have a “functional currency” other than the U.S. dollar.

 

Each holder of the ADSs or Ordinary Shares who fall within one of the categories above is advised to consult their tax advisers regarding the specific tax consequences which may apply to their particular situation.

 

If a partnership (or any other entity or arrangement treated as a partnership for U.S. federal income tax purposes) holds the ADSs or Ordinary Shares, the tax consequences relating to an investment in such ADSs or Ordinary Shares will depend in part upon the status of the partner and the activities of the partnership. Such a partner or partnership should consult its tax advisers regarding the U.S. federal income tax considerations of owning and disposing of the ADSs or Ordinary Shares in its particular circumstances.

 

The discussion in this section is based on the Code, existing, proposed and temporary U.S. Treasury Regulations promulgated thereunder, administrative and judicial interpretations thereof, and the Treaty, in each case as in effect and available on the date hereof. Such authorities are subject to change, which change could apply retroactively, and to differing interpretations, all of which could affect the tax considerations described below. There can be no assurance that the U.S. Internal Revenue Service, or the IRS, will not take a position concerning the tax consequences of the ownership and disposition of ADSs or Ordinary Shares or that such a position would not be sustained by a court. U.S. holders should consult their own tax advisers concerning the U.S. federal, state, local and non-U.S. tax consequences of owning and disposing of ADSs or Ordinary Shares in their particular circumstances.

 

This summary does not address the estate or gift tax considerations, alternative minimum tax considerations, the potential application of the Medicare contribution tax on net investment income, the special tax accounting rules under Section 451(b) of the Code, or any U.S. state, local, or non-U.S. tax considerations applicable to the acquisition, ownership and disposition of ADSs or Ordinary Shares.

 

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As used herein, a “U.S. holder” is a beneficial owner of an ADS that is, for U.S. federal income tax purposes, (i) an individual who is a citizen or resident of the United States, (ii) a corporation (or an entity taxable as a corporation) created or organized in or under the laws of the United States, any State thereof or the District of Columbia, (iii) an estate the income of which is subject to U.S. federal income tax without regard to its source or (iv) a trust if (1) a court within the United States is able to exercise primary supervision over the ad- ministration of the trust, and one or more United States persons have the authority to control all substantial decisions of the trust, or (2) the trust has a valid election in effect under applicable U.S. Treasury Regulations to be treated as a United States person.

 

GIVEN THE COMPLEXITY OF THE TAX LAWS AND BECAUSE THE TAX CONSEQUENCES TO ANY PARTICULAR INVESTOR MAY BE AFFECTED BY MATTERS NOT DISCUSSED HEREIN, ALL CURRENT AND PROSPECTIVE HOLDERS OF ORDINARY SHARES AND THE ADSs ARE URGED TO CONSULT THEIR OWN TAX ADVISORS WITH RESPECT TO THE SPECIFIC TAX CONSEQUENCES OF THE ACQUISITION, OWNERSHIP AND DISPOSITION OF ADSs, INCLUDING THE APPLICABILITY AND EFFECT OF U.S. FEDERAL, STATE AND LOCAL TAX LAWS, AS WELL AS AUSTRALIAN AND OTHER NON-U.S. TAX LAWS.

 

Nature of ADSs for U.S. Federal Income Tax Purposes

 

In general, for U.S. federal income tax purposes, a holder of an ADS will be treated as the owner of the underlying Ordinary Shares. Accordingly, except as specifically noted below, the tax consequences discussed below with respect to ADSs will be the same as for Ordinary Shares. Exchanges of Ordinary Shares for ADSs, and ADSs for Ordinary Shares, generally will not be subject to U.S. federal income tax.

 

Distributions

 

In general, subject to the passive foreign investment company rules discussed below, a distribution on an ADS or Ordinary Share will constitute a dividend for U.S. federal income tax purposes to the extent that it is made from our current or accumulated earnings and profits as determined under U.S. federal income tax principles. If a distribution exceeds our current and accumulated earnings and profits, it generally will be treated as a non-taxable reduction of basis to the extent of the U.S. holder’s tax basis in the ADS or Ordinary Share on which it is paid, and to the extent it exceeds that basis it generally will be treated as capital gain. The Company has not maintained and does not plan to maintain calculations of earnings and profits under U.S. federal income tax principles. Accordingly, it is unlikely that U.S. holders will be able to establish that a distribution by the Company is in excess of its current and accumulated earnings and profits (as computed under U.S. federal income tax principles). Therefore, a U.S. holder should expect that a distribution by the Company will generally be treated as taxable in its entirety as a dividend to U.S. holders for U.S. federal income tax purposes even though the distribution may be treated in whole or in part as a non-taxable distribution for Australian tax purposes.

 

The gross amount of any dividend on an ADS or Ordinary Share (which will include the amount of any Australian taxes withheld) generally will be subject to U.S. federal income tax as foreign source dividend income, and will not be eligible for the corporate dividends received deduction. In general, the amount of a dividend paid in Australian dollars will be its value in U.S. dollars based on the prevailing spot market exchange rate in effect on the day the U.S. holder receives the dividend or, in the case of a dividend received in respect of an ADS, on the date the Depositary receives it, whether or not the dividend is converted into U.S. dollars at that time. A U.S. holder will have a tax basis in any distributed Australian dollars equal to its U.S. dollar amount on the date of receipt, and any gain or loss realized on a subsequent conversion or other disposition of Australian dollars generally will be treated as U.S. source ordinary income or loss. If dividends paid in Australian dollars are converted into U.S. dollars on the date they are received by a U.S. holder, the U.S. holder generally should not be required to recognize foreign currency gain or loss in respect of the dividend.

 

Subject to certain exceptions, a dividend that a non-corporate holder receives on an ADS or Ordinary Share may qualify for the preferential rates of taxation with respect to dividends on the ADSs or Ordinary Shares applicable to long-term capital gains (i.e., gains from the sale of capital assets held for more than one year) and “qualified dividend income” (as discussed below). A dividend on an ADS or Ordinary Share will be a qualified dividend if (i) either (a) the ADSs or Ordinary Shares, as applicable, are readily tradable on an established market in the United States or (b) we are eligible for the benefits of a comprehensive income tax treaty with the United States that the Secretary of the Treasury determines is satisfactory for purposes of these rules and that includes an exchange of information program, and (ii) we were not, in the year prior to the year the dividend was paid, and are not, in the year the dividend is paid, a passive foreign investment company (“PFIC”). The ADSs are listed on the NASDAQ Capital Market, which should qualify them as readily tradable on an established securities market in the United States. In any event, the Treaty satisfies the requirements of clause (i)(b), and we believe we qualify as a resident of Australia entitled to the benefits of the Treaty (though there can be no assurance in this regard). However, based on our audited financial statements and relevant market and shareholder data, we believe we were a PFIC for U.S. federal income tax purposes for our taxable year ended June 30, 2023. Therefore, in light of the discussion in the section entitled “Passive Foreign Investment Company Rules,” you should assume that dividends generally will not constitute qualified dividend income eligible for reduced rates of taxation.

 

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Any Australian withholding tax imposed on dividends received with respect to the ADSs or Ordinary Shares will be treated as a foreign income tax eligible for credit against a U.S. holder’s U.S. federal income tax liability, subject to generally applicable limitations under U.S. federal income tax law. Alternatively, any Australian withholding tax may be taken as a deduction against taxable income, provided the U.S. holder takes a deduction and not a credit for all foreign income taxes paid or accrued in the same taxable year. The rules relating to the determination of the foreign tax credit are complex and subject to numerous limitations that must be applied on an individual basis. In addition, the creditability of foreign taxes could be affected by actions taken by intermediaries in the chain of ownership between the holders of the ADSs and our company if, as a result of such actions, the holders of the ADSs are not properly treated as beneficial owners of the underlying Ordinary Shares. U.S. holders are urged to consult with their own tax advisers to determine whether and to what extent they will be entitled to foreign tax credits as well as with respect to the determination of the foreign tax credit limitation.

 

Sale, Exchange or Other Taxable Disposition

 

Subject to the passive foreign investment company rules discussed below, on a sale, exchange or other taxable disposition of an Ordinary Share or ADS, a U.S. holder generally will recognize capital gain or loss in an amount equal to the difference between the U.S. holder’s adjusted tax basis in the Ordinary Share or ADS and the amount realized on the sale, exchange or other taxable disposition, each determined in U.S. dollars. The adjusted tax basis in the ADSs or Ordinary Shares generally will be equal to the cost of such ADSs or Ordinary Shares. Capital gain from the sale, exchange or other taxable disposition of the ADSs or Ordinary Shares by a non-corporate U.S. holder is generally eligible for a preferential rate of taxation applicable to long-term taxable capital gains if the non-corporate U.S. holder’s holding period determined at the time of such sale, exchange or other taxable disposition for such securities exceeds one year. Capital gains recognized by corporate U.S. holders generally are subject to U.S. federal income tax at the same rate as ordinary income. The deductibility of capital losses is subject to limitations. Any gain or loss a U.S. holder recognizes generally will be U.S. source for U.S. foreign tax credit purposes. The rules relating to the determination of the foreign tax credit are complex, and U.S. holders are urged to consult with their own tax advisers regarding the application of such rules.

 

For a cash basis taxpayer, units of foreign currency paid or received are translated into U.S. dollars at the spot rate on the settlement date of the purchase or sale. In that case, no foreign currency exchange gain or loss will result from currency fluctuations between the trade date and the settlement date of such a purchase or sale.

 

An accrual basis taxpayer may elect the same treatment required of cash basis taxpayers with respect to purchases and sales of our Ordinary Shares or ADSs that are traded on an established securities market, provided the election is applied consistently from year to year. Such election may not be changed without the consent of the IRS. For an accrual basis taxpayer who does not make such election, units of foreign currency paid or received are translated into U.S. dollars at the spot rate on the trade date of the purchase or sale. Such an accrual basis taxpayer may recognize exchange gain or loss based on currency fluctuations between the trade date and the settlement date. Any foreign currency gain or loss a U.S. holder realizes will be U.S. source ordinary income or loss.

 

Passive Foreign Investment Company Rules

 

A special set of U.S. federal income tax rules applies to a foreign corporation that is a PFIC for U.S. federal income tax purposes. As noted above, based on our audited financial statements and relevant market and shareholder data, we believe that we were a PFIC for U.S. federal income tax purposes for our taxable year ended June 30, 2023. There can be no assurance that we will not be considered a PFIC in any past, current or future taxable year. However, our PFIC status is based on an annual determination and may change from year to year. Our status as a PFIC will depend on the composition of our income (including with respect to the R&D Tax Credit) and the composition and value of our assets, which may be determined in large part by reference to the market value of the ADSs and Ordinary Shares, which may be volatile, from time to time. Our status may also depend, in part, on how quickly we utilize the cash we raise in any offering of our securities. Our U.S. counsel expresses no opinion regarding our conclusions or our expectations regarding our PFIC status.

 

In general, a non-U.S. corporation is a PFIC if at least 75% of its gross income for the taxable year is passive income (the “income test”) or if at least 50% of the average quarterly value of its total gross assets for the taxable year (which would generally be measured by fair market value of our assets, and for which purpose the total value of our assets may be determined in part by the market value of the ADSs and Ordinary Shares, which are subject to change) produce passive income or are held for the production of passive income (the “asset test”). Passive income for this purpose generally includes dividends, interest, royalties, rents, gains from commodities and securities transactions, the excess of gains over losses from the disposition of assets which produce passive income, and includes amounts derived by reason of the temporary investment of funds raised in offerings of our securities. If a non-U.S. corporation owns directly or indirectly at least 25% by value of the stock of another corporation or the partnership interests in a partnership, the non-U.S. corporation is treated for purposes of the PFIC tests as owning its proportionate share of the assets of the other corporation or partnership and as receiving directly its proportionate share of the other corporation’s or partnership’s income.

 

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If we are classified as a PFIC in any year with respect to which a U.S. holder owns ADSs or Ordinary Shares, we will continue to be treated as a PFIC with respect to such U.S. holder in all succeeding years during which the U.S. holder owns the ADSs or Ordinary Shares, regardless of whether we continue to meet the tests described above unless we cease to be a PFIC and the U.S. holder has made a “deemed sale” election under the PFIC rules. If the “deemed sale” election is made, a U.S. holder will be deemed to have sold the securities the U.S. holder holds at their fair market value as of the date of such deemed sale and any gain from such deemed sale would be subject to the rules described below. After the deemed sale election, so long as we do not become a PFIC in a subsequent taxable year, the U.S. holder’s securities with respect to which such election was made will not be treated as shares in a PFIC and the U.S. holder will not be subject to the rules described below with respect to any “excess distribution” the U.S. holder receives from us or any gain from an actual sale or other disposition of the securities. U.S. holders should consult their tax advisors as to the possibility and consequences of making a deemed sale or other “purging” election if such election becomes available.

 

If we are a PFIC, and you are a U.S. holder that does not make one of the elections described herein, a special tax regime will apply to both (a) any “excess distribution” by us to you (generally, your ratable portion of distributions in any year, other than the taxable year in which your holding period in the Ordinary Shares or ADSs begins, which are greater than 125% of the average annual distribution received by you in the shorter of the three preceding years or the portion of your holding period for the ADSs or Ordinary Shares that preceded the year of the distribution) and (b) any gain realized on the sale or other disposition of the ADSs or Ordinary Shares. Under this regime, any excess distribution and realized gain will be treated as ordinary income and will be subject to tax as if (a) the excess distribution or gain had been realized ratably over your holding period, (b) the amount deemed realized in each year had been subject to tax in each year of that holding period at the highest marginal rate for such year (other than income allocated to the current period or any taxable period before we became a PFIC, which would be subject to tax at the U.S. holder’s regular ordinary income rate for the current year and would not be subject to the interest charge discussed below) and (c) the interest charge generally applicable to underpayments of tax had been imposed on the taxes deemed to have been payable in those years. In addition, dividend distributions made to you will not qualify for the lower rates of taxation applicable to qualified dividends discussed above under “Distributions.”

 

Certain elections may alleviate some of the adverse consequences of PFIC status and would result in an alternative treatment of our Ordinary Shares or ADSs. If a U.S. holder makes a mark-to-market election with respect to their Ordinary Shares or ADSs, the U.S. holder generally will recognize as ordinary income any excess of the fair market value of such Ordinary Shares or ADSs at the end of each taxable year over their adjusted tax basis, and will recognize an ordinary loss in respect of any excess of the adjusted tax basis of such Ordinary Shares or ADSs over their fair market value at the end of the taxable year (but only to the extent of the net amount of income previously included as a result of the mark-to-market election). If a U.S. holder makes the election, the U.S. holder’s tax basis in their Ordinary Shares or ADSs will be adjusted to reflect these income or loss amounts. Any gain recognized on the sale or other disposition of Ordinary Shares or ADSs in a year in which we are a PFIC will be treated as ordinary income and any loss will be treated as an ordinary loss (but only to the extent of the net amount of income previously included as a result of the mark-to-market election). The mark-to-market election is available only if we are a PFIC and the Ordinary Shares or ADSs are “regularly traded” on a “qualified exchange.” Our Ordinary Shares or ADSs will be treated as “regularly traded” in any calendar year in which more than a de minimis quantity of our Ordinary Shares or ADSs are traded on a qualified exchange on at least 15 days during each calendar quarter (subject to the rule that trades that have as one of their principal purposes the meeting of the trading requirement are disregarded). The NASDAQ Capital Market is a qualified exchange for this purpose and, consequently, if the ADSs are regularly traded, the mark-to-market election will be available to a U.S. holder. It should be noted that it is intended that only the ADSs and not the Ordinary Shares will be listed on the NASDAQ Capital Market. Consequently, the Ordinary Shares may not be marketable if the ASX (where the Ordinary Shares are currently listed) does not meet the applicable requirements. U.S. holders should consult their tax advisors regarding the availability of the mark-to-market election for Ordinary Shares that are not represented by ADSs.

 

However, a mark-to-market election generally cannot be made for equity interests in any lower-tier PFICs that we own, unless shares of such lower-tier PFIC are themselves “marketable.” As a result, even if a U.S. holder validly makes a mark-to-market election with respect to our Ordinary Shares or ADSs, the U.S. holder may continue to be subject to the PFIC rules (described above) with respect to its indirect interest in any of our investments that are treated as an equity interest in a PFIC for U.S. federal income tax purposes. U.S. holders should consult their tax advisors as to the availability and desirability of a mark-to-market election, as well as the impact of such election on interests in any lower-tier PFICs.

 

We do not currently intend to provide the information necessary for U.S. holders to make qualified electing fund elections if we were treated as a PFIC for any taxable year. U.S. holders should consult their tax advisors to determine whether any of the other elections described above would be available and if so, what the consequences of the alternative treatments would be in their particular circumstances.

 

If we are determined to be a PFIC, the general tax treatment for U.S. holders described in this section would apply to indirect distributions and gains deemed to be realized by U.S. holders in respect of any of our subsidiaries that also may be determined to be PFICs. U.S. holders should consult their tax advisors regarding the application of the PFIC rules to our subsidiaries. If a U.S. holder owns Ordinary Shares or ADSs during any taxable year in which we are a PFIC, the U.S. holder may be required to file an IRS Form 8621 (Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund) with respect to the company, generally with the U.S. holder’s federal income tax return for that year. You should consult your tax advisor concerning any filing requirements arising from the PFIC rules.

 

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The U.S. federal income tax rules relating to PFICs are complex. Prospective U.S. investors are urged to consult their own tax advisors with respect to the acquisition, ownership and disposition of our Ordinary Shares or ADSs, the consequences to them of an investment in a PFIC, any elections available with respect to Ordinary Shares and ADSs and the IRS information reporting obligations with respect to the acquisition, ownership and disposition of Ordinary Shares and ADSs.

 

Information Reporting and Backup Withholding

 

U.S. holders generally will be subject to information reporting requirements with respect to dividends on the Ordinary Shares or ADSs and on the proceeds from the sale, exchange or disposition of the Ordinary Shares or ADSs that are paid within the United States or through U.S.-related financial intermediaries, unless the U.S. holder is an “exempt recipient.” In addition, U.S. holders may be subject to backup withholding on such payments unless the U.S. holder provides a taxpayer identification number and a duly executed IRS Form W-9 or otherwise establishes an exemption. Backup withholding is not an additional tax, and the amount of any backup withholding will be allowed as a credit against a U.S. holder’s U.S. federal income tax liability and may entitle such holder to a refund, provided that the required information is timely furnished to the IRS.

 

Reporting Obligations of Individual Owners of Foreign Financial Assets

 

Subject to certain exceptions (including an exception for property held in accounts maintained by U.S. financial institutions), Section 6038D of the Code generally requires certain individual U.S. holders (and certain entities that are closely held by U.S. individuals) to report information relating to an interest in the Ordinary Shares or ADSs by filing IRS Form 8938 (Statement of Specified Foreign Financial Assets) with their U.S. federal income tax return. Such U.S. holders (or entities) who fail to timely furnish the required information may be subject to penalties. Additionally, if any such U.S. holder (or entity) does not report the required information, the statute of limitations with respect to tax returns of the U.S. holder (or entity) to which the information relates may not close until three years after such information is reported. U.S. holders are urged to consult their tax advisors regarding their information reporting obligations, if any, with respect to their ownership and disposition of the Ordinary Shares or ADSs.

 

THE DISCUSSION ABOVE IS NOT INTENDED TO CONSTITUTE A COMPLETE ANALYSIS OF ALL TAX CONSIDERATIONS APPLICABLE TO AN INVESTMENT IN ORDINARY SHARES OR ADSs. EACH CURRENT AND POTENTIAL HOLDER IS URGED TO CONSULT THEIR OWN TAX ADVISERS CONCERNING THE TAX CONSEQUENCES RELEVANT TO THEM IN THEIR PARTICULAR SITUATION.

 

Item 10.F Dividends and Paying Agents

 

No dividends were declared or paid to members for the year ended June 30, 2024 (2023: nil). The Company’s franking account balance was nil at June 30, 2024 (2023: nil).

 

Item 10.G Statement by Experts

 

Not applicable.

 

Item 10.H Documents on Display

 

The documents concerning the Company which are referred to in this Annual Report may be inspected at the offices of the Company at 60-66 Hanover Street, Fitzroy, Victoria 3065 Australia. As a “foreign private issuer” we are subject to the information requirements of the U.S. Securities Exchange Act of 1934, as amended, and, in accordance therewith, we are required to file reports, including annual reports on Form 20-F, and other information with the U.S. Securities and Exchange Commission in electronic form. Any filings we make electronically are available to the public over the Internet at the Commission’s website at http://www.sec.gov. We also maintain a website at www.genetype.com. Information on our website and websites linked to it do not constitute a part of this Annual Report.

 

Item 10.I Subsidiary Information

 

We have nine subsidiaries of which four are operating. For further details please refer to Exhibit 8.1 filed with this report.

 

Item 10.J Annual Report to Security Holders

 

Not applicable.

 

Item 11. Quantitative and Qualitative Disclosures about Market Risk

 

Our market risk relates primarily to exposure to changes in foreign currency exchange rates and interest rates. Refer Note 32 of the attached financial statements for further analysis surrounding market risk.

 

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Interest Rate Risk. As of June 30, 2024, we had A$1,020,608 in cash and cash equivalents of which A$118,607 was subject to interest rate risk. Interest income earned on the cash balances is affected by changes in the levels of market interest rates. We invest excess cash in interest-bearing, investment-grade securities and time deposits in high-quality institutions. We do not utilize derivative financial instruments, derivative commodity instruments, positions or transactions in any material matter.

 

Accordingly, we believe that, while the investment-grade securities and time-deposits we hold are subject to changes in financial standing of the issuer of such securities, the principal is not subject to any material risks arising from changes in interest rates, foreign currency exchange rates, commodity prices, equity prices or other market changes that affect market risk sensitive instruments. Since we hold cash and cash equivalents in Banks which are located outside Australia, we are subject to certain cross-border risks, though due to the size of the holdings these risks are not generally significant.

 

Foreign Currency Exchange Rate Risk. We operate in Australia with active operations in the U.S.A., United Kingdom and Europe, and are accordingly subject to certain foreign currency exposure. This includes foreign-currency denominated receivables, payables, and other balance sheet positions as well as future cash flows resulting from anticipated transactions including intra-company transactions. Historically, currency translation gains and losses have been reflected as adjustments to stockholders’ equity, while transaction gains and losses have been reflected as components of income and loss. Transaction gains and losses could be material depending upon changes in the exchange rates between the Australian dollar and the U.S. dollar. A significant amount of our current revenue is denominated in U.S. dollars which provides us with a limited natural hedge against exchange rate movements.

 

Item 12. Description of Securities Other Than Equity Securities

 

Item 12.A Debt Securities

 

Not applicable.

 

Item 12.B Warrants and Rights

 

Not applicable.

 

Item 12.C Other Securities

 

Not applicable

 

Item 12.D American Depositary Shares Fees and Charges Payable by ADS Holders

 

The table below summarizes the fees and charges that a holder of our ADSs may have to pay, directly or indirectly, to our depositary, The Bank of New York Mellon, or BNYM, pursuant to the Deposit Agreement, which was filed as Exhibit 2.1 to our Registration Statement on Form F-6 filed with the SEC on January 14, 2002, and the types of services and the amount of the fees or charges paid for such services. The disclosure under this heading “Fees and Charges Payable by ADS Holders” is subject to and qualified in its entirety by reference to the full text of the Deposit Agreement. The holder of an ADS may have to pay the following fees and charges to BNYM in connection with ownership of the ADS:

 

Persons Depositing or Withdrawing Shares Must

 

Pay:   For:
● US$5.00 (or less) per 100 ADSs (or portion of 100 ADSs)   ● Issuance of ADSs, including issuances resulting from a distribution of shares or rights or other property
     
    ● Cancellation of ADSs for the purpose of withdrawal, including if the deposit agreement terminates
     
● US$0.02 (or less) per ADS   ● Any cash distribution to you
     
● A fee equivalent to the fee that would be payable if securities distributed to you had been shares and the shares had been deposited for issuance of ADSs   ● Distribution of securities distributed to holders of deposited securities which are distributed by the depositary to ADS holders
     
● US$1.50 (or less) per ADR   ● Transfers, combination and split-up of ADRs
     
● Expenses of the depositary   ● Cable, telex and facsimile transmissions (when expressly provided in the deposit agreement)
     
    ● Converting foreign currency to U.S. dollars

 

The depositary collects its fees for issuance and cancellation of ADSs directly from investors depositing shares or surrendering ADSs for the purpose of withdrawal or from intermediaries acting for them. The depositary collects fees for making distributions to investors by deducting those fees from the amounts distributed or by selling a portion of distributable property to pay the fees. The depositary may collect its annual fee for depositary services by deduction from cash distributions or by directly billing investors or by charging the book-entry system accounts of participants acting for them. The depositary may generally refuse to provide fee-attracting services until its fees for those services are paid.

 

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PART II

 

Item 13. Defaults, Dividend Arrearages and Delinquencies

 

Not applicable.

 

Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds

 

Not applicable.

 

Item 15. Controls and Procedures

 

Disclosure controls and procedures

 

We maintain disclosure controls and procedures as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”), as amended, that are designed to ensure that information required to be disclosed in the reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed or submitted under the Securities Exchange Act of 1934 is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

 

Our Management, including our Chief Executive Officer and Chief Financial Officer, believes that our disclosure controls and procedures or our internal control over financial reporting are designed and operated to be effective at the reasonable assurance level. However, our Management does not expect that our disclosure controls and procedures and our internal control over financial reporting will prevent all error and fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Additionally, the design of a control system must reflect the fact that there are resource constraints, and the benefit of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected or that our control system will operate effectively under all circumstances. Moreover, the design of any system of controls is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

 

Our Management has carried out an evaluation, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures as of June 30, 2024. Based on that evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective as of June 30, 2024.

 

Management’s annual report on internal control over financial reporting

 

Our Management is responsible for establishing and maintaining adequate internal control over financial reporting. The Securities Exchange Act of 1934 defines internal control over financial reporting in Rules 13a-15(f) and 15d-15(f) as a process designed by, or under the supervision of, the Company’s Chief Executive Officer and Chief Financial Officer effected by the Company’s Board of Directors, Management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles and includes those policies and procedures that:

 

Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Company;
Provide reasonable assurance that transactions are recorded as necessary to permit the preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of Management and directors of the Company; and
Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the consolidated financial statements.

 

Our Management, under the supervision and with participation of our Chief Executive Officer and Chief Financial Officer, has assessed the effectiveness of the Company’s internal control over financial reporting as of June 30, 2024. Based on that evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that the Company’s internal control over financial reporting was effective as of June 30, 2024. In making this assessment, Management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission, or COSO, in Internal Control-Integrated Framework (2013).

 

 68 

 

 

This Annual Report does not include an attestation report of the Company’s registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Company’s registered public accounting firm pursuant to rules of the Securities and Exchange Commission that permit the Company to provide only Management’s report in this Annual Report.

 

Attestation report of the registered public accounting firm

 

Not applicable.

 

Changes in Internal Control over Financial Reporting

 

There were no changes in the internal control over financial reporting during the year ended June 30, 2024.

 

Item 16. Reserved

 

Reserved.

 

Item 16.A Audit Committee Financial Expert

 

On February 15, 2024 the Company appointed Mr. Lindsay Wakefield, an independent Non-Exectuiev Director, as the Chairman of the Audit & Risk Committee replacing Mr. Nick Burrows who resigned as a director on the same date. The Board has determined that Mr. Lindsay Wakefield qualifies as an audit committee financial expert and has the accounting or financial management expertise as required under Item 407(d)(5)(ii) and (iii) of Regulation S-K. He is independent as that term is used in NASDAQ Marketplace Rule 5605(a)(2).

 

Item 16.B Code of Ethics

 

We have adopted a Code of Ethics (styled “Code of Conduct”) that applies to all of our Directors and employees, including our principal executive officer, principal financial officer and principal accounting officer or controller. The Code can be downloaded at our website (www.genetype.com). Additionally, any person, upon request, can ask for a hard copy or electronic file of the Code. If we make any substantive amendment to the Code or grant any waivers, including any implicit waiver, from a provision of the Code, we will disclose the nature of such amendment or waiver on our website. During the year ended June 30, 2024, no such amendment was made, or waiver granted. A copy of our Code of Conduct is incorporated by reference as an exhibit to this Report.

 

Item 16.C Principal Accountant Fees and Services

 

The following table sets forth the fees billed to us by our Independent Registered Public Accounting Firm, Grant Thornton Audit Pty Ltd, during the financial years ended June 30, 2024 and 2023, respectively:

 

  

2024

A$

  

2023

A$

 
Services rendered          
Grant Thornton Audit Pty Ltd in respect of:          
Audit fees (1)   332,706    320,569 
Audit-related fees (2)   -    - 
All other fees (3)   -    - 

 

(1) Audit fees consist of services that would normally be provided in connection with statutory, half year review and regulatory filings or engagements, including services that generally only the independent accountant can reasonably provide such as comfort letters.

 

(2) Audit-related fees consist of fees billed for assurance and related services that generally only the statutory auditor could reasonably provide to a client.

 

(3) All other fees consist of fees billed for financial and information technology due diligence services in respect of the Company’s acquisition of the business and assets associated with the EasyDNA brand that completed on August 13th, 2021

 

 69 

 

 

Audit Committee Pre-Approval Policies and Procedures

 

Our Board of Directors has established pre-approval and procedures for the engagement of its Independent Registered Public Accounting Firm for audit and non-audit services. The Board of Directors reviews the scope of the services to be provided, before their commencement, in order to ensure that there are no independence issues and the services are not prohibited services, as defined by the Sarbanes-Oxley Act of 2002. The Board of Directors has considered advice received from the Audit & Risk Committee and is satisfied that the provision of the non-audit services is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. The directors are satisfied that the provision of the non-audit services as set out above, did not compromise the auditor independence requirements of the Corporations Act 2001 because the services are not deemed to undermine the general principles relating to auditor independence as set out in APES 110 Code of Ethics for Professional Accountants.

 

Item 16.D Exemptions from the Listing Standards for Audit Committees

 

Not applicable.

 

Item 16.E Purchases of Equity Securities by the Issuer and Affiliated Purchasers

 

Not applicable.

 

Item 16.F Change in Registrant’s Certifying Accountant

 

Not applicable.

 

Item 16.G Corporate Governance

 

Refer to Item 6C regarding the Company’s Corporate Governance practices and the key differences between the Listing Rules of the Australian Securities Exchange and NASDAQ’s Marketplace Rules as they apply to us.

 

Item 16.H Mine Safety Disclosure

 

Not applicable.

 

Item 16.I Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

 

Not applicable.

 

Item 16.J insider Trading Policies

 

The Company has adopted a Securities Trading Policy which covers insider trading. Refer to exhibit 4.13 for further details.

 

Item 16.K Cybersecurity

 

The Company’s executive officers oversee the strategic processes to safeguard data and comply with relevant regulations and has overall responsibility for evaluating cybersecurity risks, as well as related policies and risks in connection with the company’s supply chain, suppliers and other service providers. The Company does not currently engage any assessors, consultants, auditors, or other third parties in connection with any such processes, given the size and scale of the Company, the resources available to it, the anticipated expenditures, and the risks it faces in terms of cybersecurity. The Company’s executive officers are responsible for overseeing and periodically reviewing and identifying risks from cybersecurity threats associated with its use of any third-party service provider.

 

Since the start of its latest completed fiscal year and up to the date of this Annual Report, the Company is not aware of any risks from cybersecurity threats, including as a result of any previous cybersecurity incidents, have materially affected or are reasonably likely to materially affect the registrant, including its business strategy, results of operations, or financial condition.

 

The Board is collectively responsible for oversight of risks from cybersecurity threats. The Company’s executive officers oversee the overall processes to safeguard data and comply with relevant regulations and will report material cybersecurity incidents to the board. The Company’s executive officers have limited experience in the area of cybersecurity, but where necessary in the view of the Company’s executive officers, the Company will consult with external advisers to manage and remediate any cybersecurity incidents. For material cybersecurity incidents, the Company’s executive officers will promptly inform, update, and seek the instructions of the board.

 

PART III

 

Item 17. Financial Statements

 

The Company has responded to Item 18 in lieu of responding to this Item.

 

Item 18. Financial Statements

 

The full text of the Company’s audited financial statements for the fiscal years ended June 30, 2024 and 2023 begins on page F-1 of this Annual Report on Form 20-F.

 

Australian Disclosure Requirements

 

Directors’ Declaration

 

In the directors’ opinion:

 

(a) the financial statements and Notes set out on pages F-8 to F-55 are in accordance with the Corporations Act 2001, including:

 

(i) Complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements, and

 

(ii) Giving a true and fair view of the consolidated entity’s financial position as at June 30, 2024 and of its performance for the fiscal year ended on that date, and

 

(b) There are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

 

(c) the information disclosed in the consolidated entity disclosure statement is true and correct.

 

Note 1 ‘Basis of preparation’ confirms that the financial statements also comply with International Financial Reporting Standards as issued by the International Accounting Standards Board.

 

The directors have been given the declarations by the chief executive officer and chief financial officer required by section 295A of the Corporations Act 2001.

 

This declaration is made in accordance with a resolution of the directors.

 

  /s/ Peter Rubinstein  
  Chairman  
     
  Melbourne, September 30, 2024  

 

 70 

 

 

Item 19. Exhibits

 

The following documents are filed as exhibits to this Annual Report on Form 20-F:

 

1.1   Constitution of the Registrant (incorporated by reference to Exhibit 1.1 to the Company’s Registration Statement on Form 20-F filed with the Commission on December 21, 2010)
2.1   Deposit Agreement, dated as of January 14, 2002, by and among Genetic Technologies Limited, The Bank of New York Mellon, as Depositary, and the Owners and Holders of American Depositary Receipts (such agreement is incorporated herein by reference to the Registration Statement on Form F-6 relating to the ADSs (File No. 333-14270) filed with the Commission on January 14, 2002).
2.2   Description of Securities (incorporated by reference to Exhibit 4.1 to the Company’s Annual Report on Form 20-F filed with the Commission on October 22, 2020)
2.5   Form of Compensation Warrant issued on April 3, 2020 (incorporated by reference to Exhibit 10.3 of the Company’s Report on Form 6-K filed with the Commission on April 2, 2020)
2.6   Form of Pre-funded Warrant (incorporated by reference to Exhibit 4.5 to the Company’s registration statement on Form F-1/A filed on May 12, 2020)
2.7   Form of Placement Agent Warrant (incorporated by reference to Exhibit 4.6 to the Company’s registration statement on Form F-1/A filed on May 12, 2020)
2.8   Staff Share Plan 2001 dated November 30, 2001 (incorporated by reference to Exhibit 4.2 to the Company’s Registration Statement on Form 20-F filed with the Commission on August 19, 2005)
4.5   Placement Agent Agreement effective March 30, 2020 (incorporated by reference to Exhibit 10.2 of the Company’s Report on Form 6-K filed with the Commission on April 2, 2020)
4.6   Form of Securities Purchase Agreement (incorporated by reference to Exhibit 10.9 to the Company’s registration statement on Form F-1/A filed on May 12, 2020)
4.7   Renewal of Lease over premises in Fitzroy, Victoria, Australia with an effective date of September 1, 2018 (incorporated by reference to 20-F filed October 3, 2019)
4.8   Form of Securities Purchase Agreement dated July 16, 2020 (incorporated by reference to Exhibit 10.1 of the Company’s Report on Form 6-K filed with the Commission on July 20, 2020)
4.9   Form of Securities Purchase Agreement dated January 21, 2021 (incorporated by reference to Exhibit 10.1 of the Company’s Report on Form 6-K filed with the Commission on January 5, 2021)
4.10   Registration Rights Agreement dated August 12, 2021 (incorporated by reference to Exhibit 4.11 of the Company’s Annual Report on Form 20-F filed with the Commission on August 31, 2021)
4.11   Non-Solicitation Agreement dated July 18, 2021 (incorporated by reference to Exhibit 4.12 of the Company’s Annual Report on Form 20-F filed with the Commission on August 31, 2021)
4.12   Sale of Business Agreement dated July 14, 2022 (incorporated by reference to Exhibit 4.12 of the Company’s Annual Report on Form 20-F filed with the Commission on August 30, 2022)
4.13   Securities Trading Policy (incorporated by reference to Exhibit 4.13 to the Company’s Annual Report on Form 20-F filed with the Commission on August 30, 2023)
4.15   Form of Pre-Funded Warrant issued by Genetic Technologies Limited on April 22, 2024 (Incorporated by reference to Exhibit 10.2 of the Company’s Report on Form 6-K filed with the Commission on April 22, 2024)
4.16   Form of Warrant issued by Genetic Technologies Limited on April 22, 2024 (Incorporated by reference to Exhibit 10.3 of the Company’s Report on Form 6-K filed with the Commission on April 22, 2024)
4.17   Form of Placement Agent Warrant to be issued by Genetic Technologies Limited (Incorporated by reference to Exhibit 10.4 of the Company’s Report on Form 6-K filed with the Commission on April 22, 2024)
4.18   Form of American Depositary Receipt (incorporated by reference to Rule 424(b)(3) filing (File No. 333-183861), filed with the SEC on December 7, 2023)
4.19   Form of Securities Purchase Agreement dated as of April 18, 2024 between Genetic Technologies Limited and the investors listed therein (Incorporated by reference to Exhibit 10.1 of the Company’s Report on Form 6-K filed with the Commission on April 22, 2024)
8.1   List of Subsidiaries

 

 71 

 

 

12.01   Section 302 Certification of the Chief Executive Officer
12.02   Section 302 Certification of the Chief Financial Officer
13.01   Section 906 Certification of the Chief Executive Officer
13.02   Section 906 Certification of the Chief Financial Officer
14.1   Code of Ethics (styled “Code of Conduct”)
15.2   Auditor’s Independence Declaration
15.3   Independent Auditor’s Report
19.1   Form of Securities Purchase Agreement (incorporated by reference to Exhibit 10.1 to the Company’s Report on Form 6-K filed with the Commission on February 7, 2023)
23.1   Consent of Grant Thornton
97.1   Clawback Policy
101. INS   Inline XBRL Instance Document
101. SCH   Inline XBRL Schema Document
101. CAL   Inline XBRL Calculation Linkbase Document
101. DEF   Inline XBRL Definition Linkbase Document
101. LAB   Inline XBRL Labels Linkbase Document
101. PRE   Inline XBRL Presentation Linkbase Document
104   Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

*Certain information which constitutes a clearly unwarranted invasion of personal privacy pursuant to Item 601(a)(6) of Regulation S-K has been omitted.

 

 72 

 

 

SIGNATURES

 

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this Annual Report on its behalf.

 

  GENETIC TECHNOLOGIES LIMITED
     
Dated: September 30, 2024 By: /s/ Simon Morriss
  Name: Simon Morriss
  Title: Chief Executive Officer

 

 73 

 

 

2023 Financial Report

 

GENETIC TECHNOLOGIES LIMITED

 

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

 

  Page
Genetic Technologies Limited - Report of Independent Registered Public Accounting Firm (PCAOB ID 02233). F-1
   
Genetic Technologies Limited - Consolidated Statements of Profit or Loss and Other Comprehensive Income/(Loss) for the years ended June 30, 2024, 2023 and 2022. F-4
   
Genetic Technologies Limited - Consolidated Statements of Financial Position as of June 30, 2024 and 2023. F-5
   
Genetic Technologies Limited - Consolidated Statements of Cash Flows for the years ended June 30, 2024, 2023 and 2022. F-6
   
Genetic Technologies Limited - Consolidated Statements of Changes in Equity for the years ended June 30, 2024, 2023 and 2022. F-7
   
Genetic Technologies Limited - Notes to Consolidated Financial Statements. F-8

 

 74 

 

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

Board of Directors and Shareholders

 

Genetic Technologies Limited

 

Opinion on the financial statements

 

We have audited the accompanying consolidated balance sheets of Genetic Technologies Limited and subsidiaries (the “Company”) as of June 30, 2024 and 2023, the related consolidated statement of comprehensive income, changes in shareholders’ equity, and cashflows for the three years ended June 30, 2024, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of June 30, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended June 30, 2024, in conformity with International Financial Reporting Standards, as issued by the International Accounting Standards Board.

 

Basis for opinion

 

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

 

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

 

Going concern

 

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2(a)(iv) to the financial statements, the Company incurred a total comprehensive loss of A$12,033,485 (2023: A$11,650,334) and net cash outflow from operations of A$9,679,048 (2023: A$9,723,095). As at June 30, 2024, the Company held total cash and cash equivalents of A$1,020,608 and total net current liabilities of A$500,088. These conditions, along with other matters as set forth in Note 2(a)(iv), raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans in regard to these matters are also described in Note 2(a)(iv). The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

Critical audit matters

 

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

 

Research and Development Tax Incentive

 

As described further in Note 5 and Note 12 of the financial report, Genetic Technologies Limited determines the eligibility of the research and development (“R&D”) activities under the Australian government tax incentive scheme. The R&D receivable for the period was A$1,839,023 and the income recognized in the consolidated statement of profit or loss and other comprehensive income was A$1,987,253 for the year then ended.

 

 F-1 

 

 

We identified the R&D tax incentive as a critical audit matter because there is inherent subjectivity involved in the Company’s judgements in relation to the calculation and recognition of the R&D tax incentive income and receivable, with several assumptions made in determining the eligibility of claimable expenses.

 

Our procedures included, amongst others:

 

Obtained an understanding of the process undertaken to calculate the research and development tax incentive;
   
Utilized an internal research and development tax specialist to:

 

  Review the methodology used by the Company for consistency with the R&D tax offset rules; and
     
  Consider the nature of the expenses against the eligibility criteria of the R&D tax incentive scheme to assess whether the expenses included in the estimate were likely to meet the eligibility criteria;

 

Inspected supporting documentation for a sample of expenses claimed to assess validity of the claimed amount and eligibility against the R&D tax incentive scheme criteria;
   
Validated the approval process for a sample of expenses;
   
Compared the nature of R&D expenditure included in the current year estimate to the prior year claim;
   
Considered the Company’s history of successful claims;
   
Inspected copies of relevant correspondence with Aus Industry and the Australian Taxation Office related to the claims; and
   
Assessed the adequacy of the Company’s disclosures in relation to the R&D tax incentive.

 

Impairment of goodwill and other long-lived assets impairment assessment

 

As described further in Note 15 of the financial report, the carrying value of goodwill amounted to $1,784,893 at June 30, 2024. At June 30, 2024 Genetic Technologies Limited also has other intangibles assets of $360,063 made up of brands, trademarks, trade names and domain names.

 

In accordance with IFRS136 Impairment of Assets, goodwill and other intangible assets acquired in a business combination must be allocated to the Group’s cash generating units (“CGUs”). For each CGU to which goodwill has been allocated, the Group is required to assess if the carrying value of the CGU is in excess of the recoverable value.

 

The Goodwill and other long-lived assets impairment assessment has been assessed as a critical audit matter due to the judgement required by management in preparing a value in use model to satisfy the impairment test as prescribed in IFRS 36 Impairment of Assets, including significant estimation involved in forecasting of future cash flows and applying an appropriate discount rate which inherently involves a high degree of estimation and judgement by management.

 

 F-2 

 

 

Our procedures included, amongst others:

 

Assessed management’s determination of the Company having two CGUs and their allocation of goodwill;
   
Assessed whether management has the requisite expertise to prepare the impairment model;
   
Reviewed the impairment model for compliance with IFRS 36 Impairment of Assets;
   
Assessed the reasonableness and appropriateness of inputs and assumptions to the model, with involvement of our internal valuation specialist;
   
Evaluated management’s future cash flow forecasts and obtained an understanding of the process by which they were developed, including;

 

  Assessed management’s key assumptions for reasonableness and obtaining available evidence to support key assumptions;
     
  Considered the reasonableness of the revenue and cost forecasts against current period actuals;
     
  Performed a sensitivity analysis on the key assumptions;
     
  Tested the underlying calculations for mathematical accuracy of the model; and

 

Evaluated the disclosures in the financial statements for appropriateness and consistency with accounting standards.

 

/s/ GRANT THORNTON AUDIT PTY LTD

 

We have served as the Company’s auditor since 2021.

 

Melbourne, Australia

 

September 30, 2024

 

 F-3 

 

 

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND COMPREHENSIVE INCOME

 

For the year ended June 30, 2024

 

(in Australian dollars, except number of shares)

 

     

Year ended

June 30, 2024

  

Year ended

June 30, 2023

  

Year ended

June 30, 2022

 
   Note  A$   A$   A$ 
                
Revenue  4A   7,664,784    8,686,118    6,794,816 
Finance income  8   119,511    220,161    36,256 
Other income  5   1,848,731    1,836,822    2,783,391 
                   
Changes in inventories      119,425    72,257    (321,223)
                   
Raw materials      (3,879,735)   (4,407,522)   (2,692,311)
Commissions      (216,414)   (236,019)   (156,625)
Employee benefits expenses  6   (7,586,107)   (6,208,066)   (5,868,655)
Advertising and promotional expenses      (2,609,315)   (2,712,353)   (1,885,402)
Professional fees      (1,285,061)   (1,360,640)   (1,835,444)
Research and development expenses      (752,754)   (1,281,157)   (705,507)
Depreciation and amortization      (534,888)   (676,583)   (578,668)
Impairment expenses      (1,332,000)   (2,125,725)   (564,161)
Other expenses  7   (3,521,774)   (3,687,030)   (2,154,375)
Finance costs  8   (51,622)   (29,515)   (15,215)
Loss from operations before income tax      (12,017,219)   (11,909,252)   (7,163,123)
Income tax credit  9   -    158,329    32,125 
Loss for the year      (12,017,219)   (11,750,923)   (7,130,998)
Other comprehensive income/(loss)                  
Exchange gains/(losses) on translation of con- trolled foreign operations      (16,266)   100,589    27,864)
Other comprehensive income/(loss) for the year, net of tax      (16,266)   100,589    27,864)
Total comprehensive loss attributable to the members of Genetic Technologies Ltd      (12,033,485)   (11,650,334)   (7,103,134)
                   
Loss per share (cents per share)                  
Basic and diluted net loss per ordinary share  10   (0.091)   (0.116)   (0.077)
Weighted-average shares outstanding  10   132,217,246    101,380,750    92,203,483 

 

The above consolidated statement of profit or loss and comprehensive income should be read in conjunction with the accompanying notes.

 

 F-4 

 

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 

As at June 30, 2024

 

(in Australian dollars)

 

   Note 

2024

A$

  

2023

A$

 
ASSETS             
Current assets             
Cash and cash equivalents  11   1,020,608    7,851,197 
Trade and other receivables  12   2,126,553    1,921,657 
Inventories      206,468    325,893 
Other current assets  13   341,746    399,048 
Total current assets      3,695,375    10,497,795 
              
Non-current assets             
Right-of-use assets  21   211,796    509,553 
Property, plant and equipment  14   52,695    89,623 
Goodwill  15   1,784,893    3,116,893 
Other intangible assets  16   360,064    520,472 
Deferred tax asset  9   81,698    121,901 
Total non-current assets      2,491,146    4,358,442 
Total assets      6,186,521    14,856,237 
LIABILITIES             
Current liabilities             
Trade and other payables  19   2,030,523    1,617,333 
Borrowings  17   643,546    - 
Contract liabilities  4C   741,647    849,212 
Provisions  20   571,028    541,930 
Lease liabilities  21   208,719    303,570 
Total current liabilities      4,195,463    3,312,045 
              
Non-current liabilities             
Provisions  20   56,021    30,439 
Lease liabilities  21   22,924    229,276 
Deferred tax liability  9   81,698    121,901 
Total non-current liabilities      160,643    381,616 
Total liabilities      4,356,106    3,693,661 
Net assets      1,830,415    11,162,576 
              
EQUITY             
Contributed equity  22   163,817,863    161,342,707 
Reserves  23   4,388,628    6,535,556 
Accumulated losses  24   (166,376,076)   (156,715,687)
Total equity      1,830,415    11,162,576 

 

The above consolidated statement of financial position should be read in conjunction with the accompanying notes.

 

 F-5 

 

 

CONSOLIDATED STATEMENT OF CASH FLOWS

 

For the year ended June 30, 2024

 

(in Australian dollars)

 

    Note    

2024

A$

   

2023

A$

   

2022

A$

 
Cash flows used in operating activities                                
Receipts from customers             7,885,121       8,771,325       5,745,162  
Payments to suppliers and employees             (19,312,399)       (20,453,567)       (13,802,170)  
R&D tax incentive and other grants received             1,748,230       1,959,147       2,397,552  
Net cash flows used in operating activities     11       (9,679,048 )     (9,723,095 )     (5,659,456 )
                                 
Cash flows from/(used in) investing activities                                
Purchases of plant and equipment             (32,967)       (17,552)       (63,926)  
Purchases of intangible assets             -       -        (32,868)  
Interest received             147,867       191,803       36,256  
Payment for purchase of business, net of cash acquired     18       -       (486,188 )     (3,400,625)  
Net cash flows from/(used in) investing activities             114,900       (311,937 )     (3,461,163)  
                                 
Cash flows from financing activities                                
Proceeds from the issue of shares             2,577,147       7,172,399       -  
Proceeds from borrowings             601,000       -       -  
Equity transaction costs             -       (916,060 )     (10,474 )
Principal elements of lease payments             (348,906 )     (336,396 )     (268,590 )
Interest paid             (6,848 )     -       -  
Net cash flows from financing activities             2,822,393       5,919,943       (279,064)  
                                 
Net (decrease)/ increase in cash and cash equivalents             (6,741,755 )     (4,115,089 )     (9,399,683)  
Cash and cash equivalents at beginning of year             7,851,197       11,731,325       20,902,282  
Net foreign exchange difference             (88,834 )     234,961       228,726  

Cash and cash equivalents at end of year

    11       1,020,608       7,851,197       11,731,325  

 

The above consolidated statements of cash flows should be read in conjunction with the accompanying notes.

 

 F-6 

 

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 

For the year ended June 30, 2024

 

(in Australian dollars)

 

   Contributed
equity
   Reserves   Accumulated
losses
   Total equity 
   A$   A$   A$   A$ 
Balance at June 30, 2021   153,574,974    11,033,279    (143,075,218)   21,533,035 
Loss for the year   -    -    (7,130,998)   (7,130,998)
Other comprehensive income   -    27,864    -    27,864 
Total comprehensive loss   -    27,864    (7,130,998)   (7,103,134)
Transactions with owners in their capacity as owners                    
Contributions of equity, net of transaction costs and tax   1,563,662    -    -    1,563,662 
Issue of performance rights   -    437,508    -    437,508 
Transactions with owners in their capacity as owners   1,563,662    437,508    -    2,001,170 
Balance at June 30, 2022   155,138,636    11,498,651    (150,206,216)   16,431,071 
Loss for the year   -    -    (11,750,923)   (11,750,923)
Other comprehensive income   -    100,589    -    100,589 
Total comprehensive loss   -    100,589    (11,750,923)   (11,650,334)
Transactions with owners in their capacity as owners                    
Contributions of equity, net of transaction costs   6,256,339    -    -    6,256,339 
Valuation of warrants   (134,956)   134,956    -    - 
Exercise of performance rights   82,688    (82,688)   -    - 
Options/warrants expired   -    (5,241,452)   5,241,452    - 
Issue of performance rights   -    125,500    -    125,500 
Transactions with owners in their capacity as owners   6,204,071    (5,063,684)   5,241,452    6,381,839 
Balance at June 30, 2023   161,342,707    6,535,556    (156,715,687)   11,162,576 
Loss for the year   -    -    (12,017,219)   (12,017,219)
Other comprehensive income   -    (16,266)   -    (16,266)
Total comprehensive loss   -    (16,266)   (12,017,219)   (12,033,485)
Transactions with owners in their capacity as owners                    
Contributions of equity, net of transaction costs   2,577,147    -    -    2,577,147 
Valuation of warrants   (101,991)   101,991    -    - 
Share-based payment expense   -    124,177    -    124,177 
Options/warrants expired   -    (2,356,830)   2,356,830    - 
Issue of performance rights   -    -    -    - 
Transactions with owners in their capacity as owners   2,475,156    (2,130,662)   2,356,830    2,701,324 
Balance at June 30, 2024   163,817,863    4,388,628    (166,376,076)   1,830,415 

 

The above consolidated statements of changes in equity should be read in conjunction with the accompanying notes.

 

 F-7 

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

 

For the year ended June 30, 2024

 

1. CORPORATE INFORMATION

 

Genetic Technologies Limited (the “Company”) is a molecular diagnostics company that offers predictive genetic testing and risk assessment tools. These consolidated financial statements comprise the Company and its subsidiaries (together referred to as the “Group”). The Financial Report of the Company for the year ended June 30, 2024 was authorized for issue in accordance with a resolution of the Directors dated on September 30, 2024. Genetic Technologies Limited is incorporated in Australia and is a company limited by shares. The Directors have the power to amend and reissue the financial statements.

 

The Company’s Ordinary Shares are publicly traded on the Australian Securities Exchange under the symbol GTG and, via Level II American Depositary Receipts, on the NASDAQ Capital Market under the ticker GENE.

 

2. SUMMARY OF MATERIAL ACCOUNTING POLICIES 

 

(a) Basis of preparation

 

(i) Compliance with International Financial Reporting Standards as issued by the International Accounting Standards Board

 

The general purpose financial statements of Genetic Technologies Limited and its subsidiaries have been prepared in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board and Australian equivalent International Financial Reporting Standards, as issued by the Australian Accounting Standards Board. Genetic Technologies Limited is a for-profit entity for the purpose of preparing the financial statements.

 

(ii) Historical cost convention

 

These financial statements have been prepared under the historical cost convention except for financial assets and liabilities (including derivative instruments) which are measured at fair value.

 

(iii) Critical accounting estimates

 

The preparation of financial statements requires the use of certain critical accounting estimates. It also requires Management to exercise its judgement in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are critical to the financial statements, are disclosed in Note 3.

 

(iv) Going concern

 

For the year ended June 30, 2024, the Company incurred a total comprehensive loss of A$12,033,485 (2023: A$11,650,334) and net cash outflow from operations of A$9,679,048 (2023: A$9,723,095). As at June 30, 2024, the Company held total cash and cash equivalents of A$1,020,608 and total net current assets deficiency of A$500,088.

 

On July 26, 2024 the Company announced that it was restructuring its operating model in order to significantly reduce ongoing operating losses and cash outflows. As part of the restructure the Company will be transitioning to a capital light operating model under which activities such as R&D and new product development, IP creation, laboratory testing, and the introduction of predictive genetic testing products that previously had been carried out in-house, would be variously ceased, outsourced and/or undertaken through partnering. Going forward the focus of the Company would be on growing revenues in its EasyDNA and AffinityDNA business, and commercialization of geneType in the U.S. through strategic partnerships.

 

The company expects to continue to incur losses and cash outflows for the foreseeable future as it continues to invest resources in research and development activities for geneType risk assessment tests and to invest in the commercialization activities for geneType, EasyDNA and AffinityDNA, via marketing, sales and distribution channels .

 

The continuing viability of the company and its ability to continue as a going concern, and meet its debts and commitments as they fall due, is dependent on the satisfactory completion of an equity raising forecast for the early part of the 2025 financial year. The Company does not currently have binding commitments from any party to subscribe for shares and any raise will be subject to maintaining active listing on the NASDAQ exchange as well as compliance with the Group’s obligations under ASX Listing Rule 7.1.

 

On August 23, 2024, the company received notification from The   Nasdaq Stock Market LLC that it is not in compliance with the minimum bid price requirement of Nasdaq Listing Rule 5550(a)(2) for continued listing on the Nasdaq Capital Market, since the closing bid price for the company’s American Depositary Shares (ADS) on the Nasdaq Capital Market was below US$1.00 for 30 consecutive trading days.

 

Under Nasdaq Listing Rule 5810(c)(3)(A), the company has a period of 180 calendar days from the date of Notification to regain compliance with the minimum bid requirement, during which time the ADS will continue to trade on the Nasdaq Capital Market. If at any time before February 19, 2025, the bid price of the ADS closes at or above US$1.00 per ADS for a minimum of 10 consecutive business days, the Company will regain compliance with the Minimum Bid Requirement.

 

 F-8 

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (cont.)

 

2. SUMMARY OF MATERIAL ACCOUNTING POLICIES (cont.)

 

(a) Basis of preparation (cont.)

 

(iv) Going concern (cont.)

 

Due to the uncertainty surrounding the timing, quantum or the ability to raise additional equity, there is a material uncertainty that may cast significant doubt on the Group’s ability to continue as a going concern and therefore, that it may be unable to realize its assets and discharge its liabilities in the normal course of business. However, the Directors believe that the Company will be successful in its equity raising endeavours, and has a strong track record in this regard, and accordingly, have prepared the financial report on a going concern basis. As such no adjustments have been made to the financial statements relating to the recoverability and classification of the asset carrying amounts or classification of liabilities that might be necessary should the Group not be able to continue as a going concern.

 

(v) New standards and interpretations

 

  The Company has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (IFRS) that are mandatory for the current reporting period.

 

(vi) New standards and interpretations not yet adopted

 

The following new/amended standard and interpretations has been issued but are not mandatory for financial years ended June 30, 2024. It has not been adopted in preparing the financial statements for the year ended June 30, 2024 and is expected to impact the Company in the period of initial application. In all cases the Company intends to apply this standard from application date as indicated below.

 

IFRS

Reference

  Title and affected standard(s)   Nature of change   Application date   Impact on initial application
IFRS 18 (issued June 2024)   Presentation and Disclosure in Financial Statements  

IFRS 18 replaces IFRS 101 Presentation of Financial Statements. The standard aims to improve how entities communicate in their financial statements, with a focus on information about financial performance in the statement of profit or loss.

 

The standard requires income and expenses to be classified in profit or loss as one of five categories, being investing, financing, income taxes, discontinued operations and operating (which is a residual category). There are also two mandatory sub-totals:

 

● Operating profit or loss

 

● Profit or loss before financing and income taxes, which comprises operating profit or loss and all investing income and expenses

 

IFRS 18 introduces new disclosure requirements related to management-defined performance measures in the notes to the financial statements.

  Annual reporting periods beginning on or after 1 January 2027   The Company has not yet assessed the impacts of IFRS 18.

 

(b) Principles of consolidation

 

(i) Subsidiaries

 

Subsidiaries are all entities (including structured entities) over which the Company has control. The Company controls an entity when the Company is exposed to, or has rights to, variable returns from its involvement with the Company and has the ability to affect those returns through its power to direct the activities of the Company. Subsidiaries are fully consolidated from the date on which control is transferred to the Company. They are deconsolidated from the date that control ceases.

 

The acquisition method of accounting is used to account for business combinations by the Company.

 

Intercompany transactions, balances and unrealized gains on transactions between Group companies are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Company.

 

(ii) Loss of control

 

When the Group loses control over a subsidiary, it derecognizes the assets and liabilities of the subsidiary, and any related NCI and other components of equity. Any resulting gain or loss is recognized in profit or loss. Any interest retained in the former subsidiary is measured at fair value when control is lost.

 

 F-9 

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (cont.)

 

2. SUMMARY OF MATERIAL ACCOUNTING POLICIES (cont.)

 

(c) Business combination

 

The Group accounts for business combinations using the acquisition method when the acquired set of activities and assets meets the definition of a business and control is transferred to the Group (Note 2(b)(i)). In determining whether a particular set of activities and assets is a business, the Group assesses whether the set of assets and activities acquired includes, at a minimum, an input and substantive process and whether the acquired set has the ability to produce outputs.

 

The Group has an option to apply a ‘concentration test’ that permits a simplified assessment of whether an acquired set of activities and assets is not a business. The optional concentration test is met if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets.

 

The consideration transferred in the acquisition is measured at fair value, as are the identifiable net assets acquired unless a measurement exception applied. Any goodwill that arises is tested annually for impairment (Note 2(k)). Any gain on a bargain purchase is recognized in profit or loss immediately. Transaction costs are expensed as incurred, except if related to the issue of debt or equity securities (Note 2(u)).

 

The consideration transferred does not include amounts related to the settlement of pre-existing relationships. Such amounts are generally recognized in profit or loss.

 

Any contingent consideration is measured at fair value at the date of acquisition. If an obligation to pay contingent consideration that meets the definition of a financial instrument is classified as equity, then it is not remeasured and settlement is accounted for within equity. Otherwise, other contingent consideration is remeasured at fair value at each reporting date and subsequent changes in the fair value of the contingent consideration are recognized in profit or loss.

 

(d) Segment reporting

 

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.

 

(e) Foreign currency translation

 

(i) Functional and presentation currency

 

Items included in the financial statements of each of the Company’s entities are measured using the currency of the primary economic environment in which the company operates (‘the functional currency’). The consolidated financial statements are presented in Australian dollar ($), which is Genetic Technologies Limited’s functional and presentation currency.

 

(ii) Transactions and balances

 

Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognized in profit or loss.

 

All foreign exchange gains and losses are presented in the consolidated statement of profit or loss on a net basis, within other expenses or other income, respectively.

 

Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss. For example, translation differences on non-monetary assets and liabilities such as equities held at fair value through profit or loss are recognized in profit or loss as part of the fair value gain or loss and translation differences on non-monetary assets such as equities classified as at fair value through other comprehensive income are recognized in other comprehensive income.

 

 F-10 

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (cont.)

 

2. SUMMARY OF MATERIAL ACCOUNTING POLICIES (cont.)

 

(e) Foreign currency translation (cont.)

 

(iii) Group companies

 

The results and financial position of foreign operations (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

 

  assets and liabilities for each consolidated statement of financial position presented are translated at the closing rate at the date of that consolidated statement of financial position;
     
  income and expenses for each consolidated statement of profit or loss and other comprehensive income are translated at average exchange rates (unless this is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions); and
     
  all resulting exchange differences are recognized in other comprehensive income.

 

On consolidation, exchange differences arising from the translation of any net investment in foreign entities, and of borrowings and other financial instruments designated as hedges of such investments, are recognized in other comprehensive income. When a foreign operation is sold or any borrowings forming part of the net investment are repaid, the associated exchange differences are reclassified to profit or loss, as part of the gain or loss on sale.

 

(f) Revenue recognition

 

Under IFRS 15, revenue is recognized based on contract with customers when performance obligations were satisfied. The following recognition criteria must also be met before revenue is recognized:

 

(i) Revenue from sale of goods - Genetic testing revenues

 

Genetype

 

Revenues from the provision of genetic and clinical risk testing for cancer and other serious diseases under the geneType brand are recognized at a point time when the Company has provided the customer with their test results, the single performance obligation. Invoices are usually payable within 30 days. Where consideration is received in advance of performance, it is initially recorded as contract liabilities and then revenue is recognized as the performance obligations are satisfied. Revenue is recognized where consideration for collection is probable and is above 50%. The geneType brand have more than 75% probability of being collected.

 

EasyDNA and AffinityDNA

 

Revenue from provision of genetic test direct to consumer under the EasyDNA and AffinityDNA brand is recognized at a point in time when the Company has provided the customer with their test results, the single performance obligation. Where consideration is received in advance of performance, it is initially recorded as contract liabilities and then revenue is recognized as the performance obligations are satisfied. Revenue recognized under the EasyDNA and AffinityDNA brands are mainly upfront, hence, no issue in collectability.

 

(ii) Revenue from services - license fees

 

Revenue from contracts with service providers is recognized when the contracted sales parameters are met, the single performance obligation. Revenue is recognized over time based on the higher of actual sales incurred or minimum fees requirement on a quarterly basis. The Company did not recognize or receive any license fee revenue in the current financial year. Fixed license fee revenue recognized in the prior period have been fully impaired as it is unlikely that these amounts will be recovered.

 

(iii) Contract liabilities

 

The Group recognizes contract liabilities for consideration received in respect of unsatisfied performance obligations and reports these amounts in its consolidated statement of financial position. Similarly, if the Group satisfies a performance obligation before it receives the consideration, the Group recognizes either a contract asset or a receivable in its consolidated statement of financial position, depending on whether something other than the passage of time is required before the consideration is due.

 

 F-11 

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (cont.)

 

2. SUMMARY OF MATERIAL ACCOUNTING POLICIES (cont.)

 

(g) Other income

 

(i) Research and development tax incentive income

 

The Australian government replaced the research and development tax concession with research and development (R&D) tax incentive from July 1, 2011. The R&D tax incentive applies to expenditure incurred and the use of depreciating assets in an income year commencing on or after July 1, 2011. A refundable tax offset is available to eligible companies with an annual aggregate turnover of less than A$20 million. A new legislation subsequently came into place, where for the first income year commencing on or after 1 July 2021, for companies with an aggregated turnover below A$20 million, the refundable R&D tax offset will be a premium of 18.5 percentage points above the claimant’s company tax rate.

 

Management has assessed the Company’s activities and expenditure to determine which are likely to be eligible under the incentive scheme. The Company accounts for the R&D tax incentive as a government grant.

 

(ii) Government Grants

 

Income from government grants is recognized in the consolidated statement of profit or loss and comprehensive income on a systematic basis over the periods in which the Company recognizes as expense the related costs for which the grants are intended to compensate in accordance with IAS 20 Accounting for Government Grants and Disclosure of Government Assistance.

 

The receivable for reimbursable amounts that have not been collected is reflected in trade and other receivables on our consolidated statement of financial position.

 

(h) Finance income and finance costs

 

The Group’s finance income and finance costs include interest income and interest expenses. Interest income or expense is recognized using the effective interest method.

 

(i) Income tax

 

The income tax expense or credit for the period is the tax payable on the current period’s taxable income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.

 

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the Company and its subsidiaries and associates operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

 

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred tax liabilities are not recognized if they arise from the initial recognition of goodwill. Deferred income tax is also not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss.

 

Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled.

 

Deferred tax assets are recognized only if it is probable that future taxable amounts will be available to utilize those temporary differences and losses.

 

 F-12 

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (cont.)

 

2. SUMMARY OF MATERIAL ACCOUNTING POLICIES (cont.)

 

(j) Leases

 

The Group considers whether a contract is, or contains a lease. A lease is defined as ‘a contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for a period of time in exchange for consideration’. To apply this definition the Company assesses whether the contract meets three key evaluations which are whether:

 

the contract contains an identified asset, which is either explicitly identified in the contract or implicitly specified by being identified at the time the asset is made available to the Group,
   
the Company has the right to obtain substantially all of the economic benefits from use of the identified asset throughout the period of use, considering its rights within the defined scope of the contract,
   
the Company has the right to direct the use of the identified asset throughout the period of use. The Company assess whether it has the right to direct ‘how and for what purpose’ the asset is used throughout the period of use.

 

Leases are recognized as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the Group. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The right-of-use asset is depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis.

 

Lease liabilities include the net present value of the following lease payments:

 

fixed payments (including in-substance fixed payments), less any lease incentives receivable,
   
amounts expected to be payable by the lessee under residual value guarantees,
   
the exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and
   
payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option.

 

The lease payments are discounted using the interest rate implicit in the lease, if that rate can be determined, or the Group’s incremental borrowing rate.

 

Right-of-use assets are measured at cost comprising the following:

 

the amount of the initial measurement of lease liability,
   
any lease payments made at or before the commencement date, less any lease incentives received,
   
any initial direct costs, and
   
restoration costs.

 

Payments associated with short-term leases and leases of low-value assets are recognized on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less.

 

Short-term leases and leases of low-value assets

 

The Group has elected not to recognize right-of-use assets and lease liabilities for leases of low-value assets and short-term leases, including IT equipment. The Group recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

 

 F-13 

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (cont.)

 

2. SUMMARY OF MATERIAL ACCOUNTING POLICIES (cont.)

 

(k) Impairment of assets

 

Non-financial asset

 

The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists, the Group makes an estimate of the asset’s recoverable amount. An asset’s recoverable amount is the higher of its fair value less costs of disposal or its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or group of assets and the asset’s value-in-use cannot be estimated to be close to its fair value. In such cases, the asset is tested for impairment as part of the cash-generating unit to which it belongs. Cash generating unit is the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or CGUs. When the carrying amount of an asset or cash-generating unit exceeds its recoverable amount, the asset or cash-generating unit is considered impaired and is written down to its recoverable amount.

 

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

 

An assessment is made at each reporting date as to whether there is any indication that previously recognized impairment losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. A previously recognized impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognized. If so, the carrying amount of the asset is increased to its recoverable amount. The increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. After such a reversal, the depreciation charge is adjusted in future periods to allocate the asset’s revised carrying amount, less any residual value, on a systematic basis over its remaining useful life. An impairment loss in respect of goodwill is not reversed.

 

Financial asset

 

The Group records the impairment losses for financial assets as lifetime expected credit losses. These are the expected shortfalls in contractual cash flows, considering the potential for default at any point during the life of the financial instrument. In calculating, the Group uses its historical experience, external indicators and forward-looking information to calculate the expected credit losses using a provision matrix.

 

(l) Cash and cash equivalents

 

For the purpose of presentation in the consolidated statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the consolidated statement of financial position.

 

(m) Trade and other receivables

 

Trade receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method, less loss allowance.

 

(n) Inventories

 

(i) Raw materials, work in progress and finished goods

 

Raw materials, work in progress and finished goods are stated at the lower of cost and net realizable value. Cost comprises direct materials, direct labor and an appropriate proportion of variable and fixed overhead expenditure, the latter being allocated on the basis of normal operating capacity. Costs are assigned to individual items of inventory on the basis of weighted average costs. Costs of purchased inventory are determined after deducting rebates and discounts. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.

 

 F-14 

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (cont.)

 

2. SUMMARY OF MATERIAL ACCOUNTING POLICIES (cont.)

 

(o) Property, plant and equipment

 

Property, plant and equipment is stated at historical cost less accumulated depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

 

Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred.

 

Depreciation is calculated using the straight-line method to allocate their cost over their estimated useful lives or, in the case of leasehold improvements and certain leased plant and equipment, the shorter lease term as follows:

 

Plant and equipment   3 - 5 years
Furniture, fittings and equipment   3 - 5 years
Leasehold improvements   1 - 3 years (lease term)
Leased plant and equipment   3 years (lease term)

 

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount (Note 2(k)).

 

Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in profit or loss. When assets are sold, it is Company policy to transfer any amounts included in other reserves in respect of those assets to retained earnings.

 

(p) Intangible assets and goodwill

 

(i) Goodwill

 

Goodwill arises on the acquisition of a business combination. Goodwill is calculated as the excess sum of:

 

  the consideration transferred;
     
  any non-controlling interest; and
     
  the acquisition date fair value of any previously held equity interest; over the acquisition date fair value of net identifiable assets acquired.

 

Goodwill is not amortized. Instead, goodwill is tested annually for impairment, or more frequently if events or changes in circumstances indicate that it might be impaired, and is carried at cost less accumulated impairment losses. Impairment losses on goodwill are taken to profit or loss and are not subsequently reversed.

 

Goodwill is allocated to the Group’s cash-generating units representing the lowest level at which goodwill is monitored.

 

(ii) Brand name and customer contracts

 

Brand, trademark, trade names and domain names acquired in a business combination that qualify for separate recognition are recognized as intangible assets at their fair values.

 

Brand, trademark, trade names and domain names are amortized on a straight-lined basis over their estimated useful lives of 5 years.

 

(q) Trade and other payables

 

Trade payables and other payables are carried at amortized cost and represent liabilities for goods and services provided to the Company prior to the end of the financial year that are unpaid and arise when the Company becomes obliged to make future payments in respect of the purchase of these goods and services. Trade payables and other payables generally have terms of between 30 and 60 days.

 

 F-15 

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (cont.)

 

2. SUMMARY OF MATERIAL ACCOUNTING POLICIES (cont.)

 

(r) Provisions

 

Provisions for legal claims, service warranties and make good obligations are recognized when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognized for future operating losses.

 

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognized even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

 

Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognized as interest expense.

 

(s) Employee benefits

 

(i) Short-term obligations

 

Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognized in respect of employees’ services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the consolidated statement of financial position.

 

(ii) Other long-term employee benefit obligations

 

In some countries, the Company also has liabilities for long service leave and annual leave that are not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service. These obligations are therefore measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the end of the reporting period of high-quality corporate bonds with terms and currencies that match, as closely as possible, the estimated future cash outflows. Remeasurements as a result of experience adjustments and changes in actuarial assumptions are recognized in general and administrative expenses in profit or loss.

 

The obligations are presented as current liabilities in the consolidated statement of financial position if the Company does not have an unconditional right to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.

 

(t) Fair value measurement

 

When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; and assumes that the transaction will take place either: in the principal market; or in the absence of a principal market, in the most advantageous market.

 

Fair value is measured using the assumptions that market participants would use when pricing the asset or liability, assuming they act in their economic best interests. For non-financial assets, the fair value measurement is based on its highest and best use. Valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, are used, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

 

Assets and liabilities measured at fair value are classified into three levels, using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. Classifications are reviewed at each reporting date and transfers between levels are determined based on a reassessment of the lowest level of input that is significant to the fair value measurement.

 

 F-16 

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (cont.)

 

2. SUMMARY OF MATERIAL ACCOUNTING POLICIES (cont.)

 

(t) Fair value measurement

 

Fair value hierarchy levels 1 to 3 are based on the degree to which the fair value is observable:

 

  Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;
     
  Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
     
  Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

 

For recurring and non-recurring fair value measurements, external valuers may be used when internal expertise is either not available or when the valuation is deemed to be significant. External valuers are selected based on market knowledge and reputation. Where there is a significant change in fair value of an asset or liability from one period to another, an analysis is undertaken, which includes a verification of the major inputs applied in the latest valuation and a comparison, where applicable, with external sources of data.

 

(u) Contributed equity

 

Issued and paid-up capital is recognized at the fair value of the consideration received by the Company. Transaction costs arising on the issue of Ordinary Shares are recognized directly in equity as a deduction, net of tax, of the proceeds received.

 

(v) Loss per share

 

(i) Basic loss per share

 

Basic loss per share is calculated by dividing:

 

  the loss attributable to owners of the Company, excluding any costs of servicing equity other than ordinary shares,
     
  by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the year and excluding treasury shares.

 

(ii) Diluted loss per share

 

Diluted loss per share adjusts the figures used in the determination of basic loss per share to take into account:

 

  after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares, and
     
  the weighted average number of additional ordinary shares that would have been outstanding assuming the conversion of all dilutive potential ordinary shares.

 

On the basis of the Company’s losses, the outstanding options and performance rights as at June 30, 2024 are considered to be anti- dilutive and therefore were excluded from the diluted weighted average number of ordinary shares calculation.

 

(w) Goods and services tax (GST) and other sales taxes

 

Receivables and payables are stated inclusive of the amount of GST and other sales taxes receivable or payable. The net amount of GST and other taxes recoverable from, or payable to, the taxation authority is included with other receivables or payables in the consolidated statement of financial position.

 

Cash flows are presented on a gross basis. The GST and other sales taxes components of cash flows arising from investing or financing activities which are recoverable from, or payable to the taxation authority, are presented as operating cash flows.

 

(x) Parent entity financial information

 

The financial information for the parent entity, Genetic Technologies Limited, disclosed in Note 34 has been prepared on the same basis as the consolidated financial statements. Loans to subsidiaries are written down to their recoverable value as at balance date.

 

 F-17 

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (cont.)

 

3. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

 

Estimates and judgements are evaluated and based on historical experience and other factors, including expectations of future events that may have a financial impact on the Company and that are believed to be reasonable under the circumstances.

 

Share-based payments transactions

 

The Company has determined that the fair value of the equity instruments is a critical judgement. The Company measures the cost of equity-settled transactions with employees and service providers by reference to the value of the equity instruments at the date on which they are granted. Management has determined the fair value by engaging an independent valuer for more complex equity instruments, such as warrants and performance rights, by using a Black-Scholes or Binomial model, and utilized internal resources to perform fair value of straight forward equity instruments by using Black-Scholes model.

 

Goodwill

 

The Group tests annually, or more frequently if events or changes in circumstances indicate impairment, whether goodwill and other indefinite life intangible assets have suffered any impairment, in accordance with the accounting policy stated in Note 2(k). The value-in-use calculation used in assessing potential impairment of goodwill incorporates a number of key estimates and assumptions which is a critical judgement. CGUs are identified by determining the smallest identifiable group of assets that generate largely independent cash inflows from other assets or groups of assets. Identifying those largely independent cash inflows requires significant judgement in assessing the Group’s sources of revenue and how assets are utilized in generating those revenues.

 

Impairment of non-financial assets other than goodwill and other indefinite life intangible assets

 

The Group assesses impairment of non-financial assets other than goodwill and other indefinite life intangible assets at each reporting date by evaluating conditions specific to the Group and to the particular asset that may lead to impairment. If an impairment trigger exists, the recoverable amount of the asset is determined. This involves fair value less costs of disposal or value-in-use calculation which incorporate a number of key estimates and assumptions.

 

Business combination and the contingent consideration

 

Business combination are initially accounted for on a provisional basis. The fair value of assets acquired and liabilities assumed are initially estimated by the Group taking into consideration all available information at the reporting date. Fair value adjustments on the finalization of the business combination accounting is retrospective, where applicable, to the period the combination occurred and may have an impact on the assets and liabilities, depreciation and amortization reported.

 

 F-18 

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (cont.)

 

4. REVENUE AND DEFERRED INCOME

 

4A. REVENUE

 

  

2024

A$

  

2023

A$

  

2022

A$

 
Sales of EasyDNA branded test - point in time   6,162,865    7,698,605    5,989,782 
Sales of AffinityDNA branded test - point in time   1,367,834    944,058    - 
Sales of geneType branded test - point in time   134,085    43,455    7,551 
License fees - over time   -    -    797,483 
Total revenue from contract with customers   7,664,784    8,686,118    6,794,816 

 

4B. DISAGGREGATION OF REVENUE FROM CONTRACTS WITH CUSTOMERS

 

The Group’s revenue disaggregated by primary geographical markets is as follows:

 

  

2024

A$

  

2023

A$

  

2022

A$

 
America and Canada   1,666,961    2,242,169    2,274,551 
Europe Middle East and Africa   4,069,799    4,494,626    2,501,302 
Latin America   190,422    322,033    128,840 
Asia Pacific   1,737,602    1,627,290    1,890,123 
Total revenue   7,664,784    8,686,118    6,794,816 

 

4C. CONTRACT BALANCES

 

  

 

 

Note

  

2024

A$

  

2023

A$

 
Receivables, which are included in ‘net trade receivables’   12    209,254    1,049,393 
Contract liabilities        741,647    849,212 

 

Contract liabilities arises from revenue for all business units, which is the consideration received in respect of unsatisfied performance obligation. There are no contract assets as at 30 June 2024 (2023: Nil).

 

The amount of A$849,212 included in deferred income (contract liabilities) at 30 June 2023 has been recognized as revenue in 2024 (2023: A$814,150).

 

No revenue was recognized in 2024 from performance obligations satisfied (fully or partially unsatisfied) in previous periods (2023: Nil, 2022: Nil).

 

5. OTHER INCOME

 

  

2024

A$

  

2023

A$

  

2022

A$

 
Research and development tax incentive income (1)   1,987,253    1,616,064    2,397,552 
Other income   20,763    45,724    25,955 
Net unrealized foreign exchange gain   (139,540)   152,963    244,762 
Net realized foreign exchange gain   (19,745)   22,071    115,122 
Total other income   1,848,731    1,836,822    2,783,391 

 

 F-19 

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (cont.)

 

5. OTHER INCOME (cont.)

 

R&D tax incentive

 

The Company’s research and development activities are eligible under an Australian government tax incentive for eligible expenditure. Management has assessed these activities and expenditure to determine which are likely to be eligible under the incentive scheme. Amounts are recognized when it has been established that the conditions of the tax incentive have been met and that the expected amount can be reliably measured. For the year ended June 30, 2024, the Company has included an item in other income of A$1,987,253 (2023: A$1,616,064, 2022: A$2,397,552) to recognize income over the period necessary to match the grant on a systematic basis with the costs that they are intended to compensate.

 

On December 5, 2019, the Treasury Laws Amendment (R&D Tax Incentive Bill 2019) was introduced into Parliament. The draft bill contains proposed amendments to the R&D tax incentive regulations. Under the proposed amendments, the refundable tax offset rate for companies with an aggregated turnover of less than A$20 million would become 41%. In lieu of that bill, the new legislation came into place.

 

6. EMPLOYEE BENEFITS EXPENSE

 

  

2024

A$

  

2023

A$

  

2022

A$

 
Salaries and wages   6,351,193    4,938,516    4,490,186 
Director fees   262,725    288,024    288,024 
Superannuation contribution   417,145    415,128    347,018 
Share-based payments   124,177    125,500    437,508 
Other employee costs   430,867    440,898    305,919 
Total employee benefits expenses   7,586,107    6,208,066    5,868,655 

 

7. OTHER EXPENSES

 

  

2024

A$

  

2023

A$

  

2022

A$

 
Buildings and facilities costs   748,864    695,844    748,580 
Insurance   437,004    403,167    345,450 
Investor relations and shareholder maintenance   349,441    469,151    344,355 
Net unrealized foreign exchange loss   -    13,521    - 
Bank and credit card merchant charges   391,627    426,589    296,883 
IT and communication   627,169    670,008    84,133 
Travel and entertainment   292,335    366,920    67,298 
Administrative   281,898    370,571    121,184 
Other expenses   393,436    271,259    146,492 
Total other expenses   3,521,774    3,687,030    2,154,375 

 

 F-20 

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (cont.)

 

8. FINANCE INCOME / (FINANCE COSTS)

 

  

2024

A$

  

2023

A$

  

2022

A$

 
Interest income   119,511    220,161    36,256 
Total finance income   119,511    220,161    36,256 
                
Lease interest   (17,639)   (29,515)   (15,215)
Interest paid   (33,983)   -    - 
Total finance costs   (51,622)   (29,515)   (15,215)

 

9. INCOME TAX CREDIT/(EXPENSE)

 

  

2024

A$

  

2023

A$

  

2022

A$

 
Reconciliation of income tax expense to prima facie tax payable               
Loss before income tax credit   (12,017,219)   (11,909,252)   (7,163,123)
Tax at the Australian tax rate of 25% (2023: 25% and 2022: 25%)               
Tax at the Australian tax rate of 25% (2023: 25% and 2022: 25%)   (3,004,305)   (2,977,313)   (1,790,781)
Tax effect amounts which are not deductible/(taxable) in calculating taxable income               
Share-based payments expense   31,044    31,375    109,377 
Non-deductible R&D expense subject to R&D tax incentive   1,056,910    919,785    1,116,714 
Impairment of goodwill   333,000    461,250    - 
Other assessable items   10,687    -    - 
Income tax expenses before unrecognized tax losses   (1,572,664)   (1,564,903)   (564,690)
                
Difference in overseas tax rates   (1,873)   53,673    (79,604)
Over provision in prior years   (124,775)   (454,928)   (348,607)
Temporary differences not recognized   (440,162)   29,979    (301,694)
Research and development tax credit   (496,813)   (404,016)   (599,388)
Tax losses not recognized   2,655,894    2,543,441    1,861,858 
Utilization of tax losses not previously recognized   (19,607)   (361,575)   - 
Income tax credit   -    (158,329)   (32,125)

 

 F-21 

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (cont.)

 

9. INCOME TAX CREDIT/(EXPENSE) (cont.)

 

  

2024

A$

  

2023

A$

  

2022

A$

 
Net deferred tax assets               
Deferred tax liabilities recognized               
Brands and trademarks   (81,698)   (121,901)   (148,013)
Total deferred tax liabilities   (81,698)   (121,901)   (148,013)
                
Deferred tax assets recognized               
Tax losses   81,698    121,901    - 
Total deferred tax assets   81,698    121,901    - 
                
Deferred tax assets not recognized               
                
Trade debtor   -    222,144    58,041 
Capital raising costs   313,518    582,168    661,863 
Intangible assets   1,058,658    1,407,570    1,456,225 
Provisions   502,950    342,252    442,383 
Total deferred tax assets   1,875,127    2,554,134    2,618,512 
Deferred tax liabilities not recognized               
Right-of-use assets   (37,102)   (127,388)   (161,787)
Total deferred tax liabilities   (37,102)   (127,388)   (161,787)
Net deferred tax assets on temporary differences not brought to account   (1,838,025)   (2,426,746)   (2,456,725)
Total net deferred tax assets/(liabilities)   -    -    (148,013)

 

  

2024

A$

  

2023

A$

  

2022

A$

 
Tax losses               
Unused tax losses for which no deferred tax asset has been recognized   128,351,776    119,096,654    105,287,311 
Potential tax benefit   31,040,867    28,539,512    25,275,328 
Potential tax benefit @ 26% (Australia)   24,675,913    21,897,732    19,020,914 
Potential tax benefit @ 21% (USA)   6,006,091    6,568,458    5,950,299 
Potential tax benefit @ 35% (Malta)   339,290    65,895    304,115 
Potential tax benefit @ 19% (UK)   19,572    7,427    - 

 

Subject to the Company continuing to meet the relevant statutory tests, the tax losses are available for offset against future taxable income.

 

 F-22 

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (cont.)

 

9. INCOME TAX CREDIT/(EXPENSE) (cont.)

 

At June 30, 2024, the Company had a potential tax benefit related to tax losses carried forward of A$31,040,867 (2023: A$28,539,512, 2022: A$25,275,328). Such amount includes net losses of A$6,006,091 (2023: A$6,568,458, 2022: A$5,950,299) related to subsidiaries in the United States (U.S.). The Tax Cuts and Jobs Act (TCJA) enacted by Congress in the U.S. on December 22, 2017 cut the top corporate income tax rate from 35% to 21%. For tax years beginning after December 31, 2017, the graduated corporate tax rate structure is eliminated, and corporate taxable income will be taxed at 21% flat rate. Additionally, the previous 20-year limitation on carry forward net operating losses (NOL’s) has been removed, allowing the NOL’s to be carried forward indefinitely. The remaining tax losses carried forward of A$24,675,913 (2023: A$21,897,732, 2022: A$19,020,914) are indefinite and are attributable to the Company’s operations in Australia, as well as A$339,290 (2023: A$65,895, 2022: A$304,115) and A$19,572 (2023: A$7,427, 2022: NIL) tax losses attributable to Company’s operations in Malta and UK, respectively. As such the total unused tax losses available to the Company, equal A$31,040,867 (2023: A$28,539,511, 2022: A$25,275,328).

 

As at balance date, there are unrecognized tax losses with a benefit of approximately A$31,040,867 (2023: A$28,539,511, 2022: A$25,275,328) that have not been recognized as a deferred tax asset to the Company. These unrecognized deferred tax assets will only be recognized if:

 

(a) The Company derives future assessable income of a nature and amount sufficient to enable the benefits to be realized;
(b) The Company continues to comply with the conditions for deductibility imposed by the law; and
(c) No changes in tax legislation adversely affect the Company from realizing the benefit.

 

Management has assessed the tax position of the Company and concluded that any potential uncertainty does not have a material impact on the financial statements.

 

Tax consolidation legislation

 

Genetic Technologies Limited and its wholly owned Australian subsidiaries implemented the tax consolidation legislation as from July 1, 2003. The accounting policy in relation to this legislation is set out in Note 2(i).

 

The entities in the tax consolidated Company have entered into a Tax Sharing Agreement which, in the opinion of the Directors, limits the joint and several liabilities of the wholly owned entities in the case of a default by the head entity, Genetic Technologies Limited.

 

The entities have also entered into a Tax Funding Agreement under which the wholly owned entities fully compensate Genetic Technologies Limited for any current tax payable assumed and are compensated by Genetic Technologies Limited for any current tax receivable and deferred tax assets relating to unused tax losses or unused tax credits that are transferred to Genetic Technologies Limited under the tax consolidation legislation. The funding amounts are determined by reference to the amounts recognized in the respective subsidiaries’ financial statements.

 

The amounts receivable or payable under the Tax Funding Agreement are due upon receipt of the funding advice from the head entity, which is issued as soon as practicable after the end of each financial year.

 

As at June 30, 2024, there are no unrecognized temporary differences associated with the Company’s investments in subsidiaries, as the Company has no liability for additional taxation should unremitted earnings be remitted (2023: Nil, 2022: Nil).

 

10. LOSS PER SHARE

 

The following reflects the income and share data used in the calculations of basic and diluted loss per share:

 

  

2024

A$

  

2023

A$

  

2022

A$

 
Loss for the year   (12,017,219)   (11,750,923)   (7,130,998)
Weighted average number of Ordinary Shares used in calculating loss per share (number of shares)   132,217,246    101,380,750    92,203,483 

 

Note:

None of the 400,000 (post share consolidation) (2023: 233,400,000 and 2022: 757,400,000) options/performance rights over the Company’s Ordinary Shares that were outstanding as at the reporting date are considered to be dilutive for the purposes of calculating diluted earnings per share.

 

The company undertook a share consolidation of equity security on December 18, 2023 on the basis of one (1) security for every 100 securities held.

 

 F-23 

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (cont.)

 

11. CASH AND CASH EQUIVALENTS

  

2024

A$

  

2023

A$

  

2022

A$

 
Reconciliation of cash and cash equivalents               
                
Cash at bank and on hand   1,020,608    7,851,197    11,731,325 
Total cash and cash equivalents   1,020,608    7,851,197    11,731,325 
                
Reconciliation of loss for the year               
Reconciliation of loss for the year after income tax to net cash flows used in operating activities is as follows:               
Loss for the year after income tax   (12,017,219)   (11,750,923)   (7,130,998)
Tax credit   -    158,329    32,125 
Loss for the year before income tax   (12,017,219)   (11,909,252)   (7,163,123)
                
Adjust for non-cash items and non-operational items               
Amortization and depreciation expenses   237,108    380,409    343,427 
Depreciation of right-of-use of assets   297,780    296,174    235,241 
Impairment of receivables   -    280,725    564,161 
Impairment of goodwill   1,332,000    1,845,000    - 
Share-based payments expense   124,177    125,500    437,508 
Inventory written-off   -    -    30,214 
Finance costs   51,622    29,515    15,215 
Finance income   (119,511)   (220,161)   (36,256)
                
Net foreign exchange (gains) / losses   139,540    (152,963)   (244,762)
Adjust for non-cash items   (9,954,504)   (9,325,053)   (5,818,375)

 

 F-24 

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (cont.)

 

11. CASH AND CASH EQUIVALENTS (cont.)

 

  

2024

A$

  

2023

A$

  

2022

A$

 
Reconciliation of cash and cash equivalents (cont.)               
                
Adjust for changes in assets and liabilities               
Decrease / (Increase) in trade and other receivables   (262,796)   256,213    (1,889,124)
(Increase) / Decrease in other operating assets   57,302    (232,961)   16,493 
Decrease / (Increase) in inventories   119,425    72,257    (351,437)
Decrease / (Increase) in other non-current assets   -    -    97,868 
(Decrease) / Increase in trade and other payables   306,845    (432,361)   2,178,301 
(Decrease) / Increase in provisions   54,680    (61,190)   106,818 
Net cash flows used in operating activities   (9,679,048)   (9,723,095)   (5,659,456)
Financing facilities available               
As at June 30, 2024, the following financing facilities had been negotiated and were available:               
Total facilities               
Credit cards   188,500    188,630    190,020 
Facilities used as at reporting date               
Credit cards   (56,750)   (16,029)   - 
Facilities unused as at reporting date               
Credit cards   131,750    172,601    190,020 

 

The Company’s main interest rate risk arises in relation to its short-term deposits with various financial institutions. If rates were to decrease, the Company may generate less interest revenue from such deposits. However, given the relatively short duration of such deposits, the associate risk is relatively minimal.

 

The Company has a Short-Term Investment Policy which was developed to manage the Company’s surplus cash and cash equivalents. In this context, the Company adopts a prudent approach that is tailored to cash forecasts rather than seeking high returns that may compromise access to funds as and when they are required. Under the policy, the Company deposits its surplus cash in a range of deposits over different time frames and with different institutions in order to diversify its portfolio and minimize risk.

 

12. TRADE AND OTHER RECEIVABLES (CURRENT)

 

  

2024

A$

  

2023

A$

 
Trade receivables   209,254    1,080,479 
Less: impairment loss   -    (888,576)
Net trade receivables   209,254    191,903 
Other receivables (1)   1,917,299    1,729,754 
Total net current trade and other receivables   2,126,553    1,921,657 

 

  (1)  Other receivables includes the R&D tax incentive refund accrued for the 2024 financial year A$1,839,023 (2023: A$1,616,064).

 

 F-25 

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (cont.)

 

13. OTHER CURRENT ASSETS

 

  

2024

A$

  

2023

A$

 
Prepayments   322,956    381,608 
Bonds and deposits   18,790    17,440 
Total current prepayments and other assets   341,746    399,048 

 

14. PROPERTY, PLANT AND EQUIPMENT

  

2024

A$

  

2023

A$

 
Laboratory equipment, at cost   973,778    975,619 
Less: cost written-off during the year   -    (8,243)
Add: additions during the year   21,976    6,402 
Less: accumulated depreciation   (973,593)   (941,545)
Add: accumulated depreciation written-off during the year   -    8,243 
Net laboratory equipment   22,161    40,476 
Computer equipment, at cost   289,265    292,817 
Less: cost written-off during the year   (8,490)   (3,099)
Less: cost transferred   -    (11,603)
Add: additions during the year   10,639    11,150 
Less: accumulated depreciation   (270,821)   (261,580)
Add: accumulated depreciation transferred   -    11,897 
Add: accumulated depreciation written-off during the year   8,490    3,099 
Net computer equipment   29,083    42,681 
Office equipment, at cost   30,312    18,709 
Less: cost written-off during the year   -    - 
Add: cost transferred   -    11,603 
Add: additions during the year   352    - 
Less: accumulated depreciation   (29,213)   (11,949)
Less: accumulated depreciation transferred   -    (11,897)
Add: accumulated depreciation written-off during the year   -    - 
Net office equipment   1,451    6,466 
Total net property, plant and equipment   52,695    89,623 
           
Reconciliation of property, plant and equipment          
Opening gross carrying amount   1,290,605    1,284,395 
Add: additions purchased during the year   32,967    17,552 
Less: cost written-off during the year   (8,490)   (11,342)
Closing gross carrying amount   1,315,082    1,290,605 
Opening accumulated depreciation and impairment losses   (1,200,982)   (978,220)
Add: accumulated depreciation written-off during the year   8,490    11,342 
Less: cost written-off during the year   (76,699)   (234,697)
Add: foreign currency translation   6,804    593 
Closing accumulated depreciation and impairment losses   (1,262,387)   (1,200,982)
Total net property, plant and equipment   52,695    89,623 

 

 F-26 

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (cont.)

 

14. PROPERTY, PLANT AND EQUIPMENT (cont.)

 

Reconciliation of movements in property, plant and equipment by asset category for the year ended June 30, 2024

 

 

Asset category

 

Opening
net
carrying
Amount

A$

  

Additions
during
year

A$

  

Transfer
during
year

A$

  

Depreciation

expense
A$

  

Foreign
currency
translation

A$

  

Closing
net
carrying
amount

A$

 
Laboratory equipment   40,476    21,976    -    (40,290)   (1)   22,161 
Computer equipment   42,681    10,639    -    (30,990)   6,753    29,083 
Office equipment   6,466    352    -    (5,419)   52    1,451 
Totals   89,623    32,697    -    (76,699)   6,804    52,695 

 

Reconciliation of movements in property, plant and equipment by asset category for the year ended June 30, 2023

 

Asset category

 

Opening
net
carrying
Amount

A$

  

Additions
during
year

A$

  

Transfer
during
year

A$

  

Depreciation

expense
A$

  

Foreign
currency
translation

A$

  

Closing
net
carrying
amount

A$

 
Laboratory equipment   231,004    6,402    -    (196,928)   (2)   40,476 
Computer equipment   62,631    11,150    294    (31,394)   -    42,681 
Office equipment   12,540    -    (294)   (6,375)   595    6,466 
Totals   306,175    17,552    -    (234,697)   593    89,623 

 

15. GOODWILL

 

The following table shows the movements in goodwill:

 

 

   2024   2023 
   A$   A$ 
Gross carrying amount:          
Balance at beginning of period   4,961,893    4,506,653 
Acquired through business combination   -    455,240 
Balance at end of period   4,961,893    4,961,893 
           
Accumulated impairment:          
Balance at beginning of period   (1,845,000)   - 
Impairment loss recognized   (1,332,000)   (1,845,000)
Balance at end of period   (3,177,000)   (1,845,000)
Carrying amount at the end of the period   1,784,893    3,116,893 

 

 F-27 

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (cont.)

 

15. GOODWILL (cont.)

 

(i) Impairment testing for CGUs containing goodwill

 

For the purpose of impairment testing, goodwill has been allocated to the Group’s CGUs as follows:

 

   2024   2023 
   A$   A$ 
Net carrying amount at the end of the period:          
EasyDNA   1,329,653    2,661,653 
AffinityDNA   455,240    455,240 
Goodwill allocation at 30 June   1,784,893    3,116,893 

 

(ii) Key assumptions used for value-in-use calculations

 

The estimates below were used in the goodwill impairment assessment for the acquired EasyDNA and AffinityDNA businesses:

 

   EasyDNA   AffinityDNA 
Revenue growth (FY2025 to FY2029)   4.3%   4.3%
Cost of inventory inputs   47.4%   57.5%
Pre-tax discount rate   22.7%   22.7%
Post-tax discount rate   17.0%   17.0%
Growth rate beyond FY2029   4.3%   4.3%

 

The key assumptions in the value-in-use impairment tests are estimated post-tax cash flows, revenue growth rates, gross margins and the discount rate. Management is aware that reasonably possible negative changes in the estimated post-tax cash flows or the discount rate could cause the recoverable amount to fall below the carrying amounts of the acquired EasyDNA and AffinityDNA businesses.

 

(iii) Impairment charge for goodwill

 

EasyDNA

 

Based upon the impairment testing undertaken by management for the financial year ending June 30, 2024 an impairment loss of A$1,332,000 (2023: 1,845,000) was recorded for the goodwill asset recorded as part of the EasyDNA business acquisition indicating that the carrying value exceeded the recoverable amount of the CGU as at 30 June 2024. Although significant revenue was recorded in the financial year for EasyDNA, revenue did not meet forecast expectations. Management believes there were a number of contributing factors, including increased competition for the genetic tests offered by EasyDNA, loss of access to pet DNA tests and regulatory changes in France banning sales of paternity tests there.

 

Following the impairment loss recognized in the Group’s EasyDNA CGU, the recoverable amount was equal to the carrying amount. Therefore, any adverse movement in a key assumption would lead to further impairment.

 

AffinityDNA

 

Management’s assessment of impairment for AffinityDNA did not result in an impairment for AffinityDNA as the recoverable amounts exceeds its carrying value by A$308,000.

 

Sensitivity analysis undertaken on the key impairment model assumptions indicates that in order for the recoverable amount to be equal to their carrying value for AffinityDNA, the discount rate would need to increase to 20.0% and revenue growth rate would need to decrease by 1.8 percentage points. Management is not aware of any events that are expected to have an adverse effect on revenue growth.

 

 F-28 

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (cont.)

 

16. OTHER INTANGIBLE ASSETS

 

The following table shows the movements in other intangible assets:

 

   2024   2023 
   A$   A$ 
Other intangible assets:          
Gross carrying amount          
Balance at beginning of period   794,682    753,418 
Brands, trademark and trade names, acquired through business combination   -    41,264 
Domain names   -    - 
Balance at end of period   794,682    794,682 
           
Accumulated amortization:          
Balance at beginning of period   (274,210)   (128,498)
Amortization for the period   (160,408)   (145,712)
Balance at end of period   (434,618)   (274,210)
Carrying amount at the end of the period   360,064    520,472 

 

Brand, trademark, trade names and domain names acquired in a business combination that qualify for separate recognition are recognized as intangible assets at their fair values. Brands, trademarks and trade names acquired through business combination for EasyDNA and AffinityDNA have been recognized as one category of intangible asset for each segment as they are interconnected elements that collectively contribute to a company’s image, recognition, and legal protection. They are essential components for establishing a strong market presence, building consumer trust, and safeguarding a company’s intellectual property.

 

The Brand, trademark, trade names and domain names acquired in respect of the purchase of the EasyDNA business and its assets have been valued using the ‘relief from royalty method’. The projected royalty cashflows were discounted to their present value assuming a weighted average cost of capital of 16%. A net royalty rate of 1.5% of projected EasyDNA revenues has been assumed.

 

The Brand, trademark, trade names and domain names acquired in respect of the purchase of AffinityDNA’s business and its assets have been valued using the ‘relief from royalty method’. The projected royalty cashflows have been discounted to their present value assuming a weighted average cost of capital of 48%. A net royalty rate of 1.5% of projected AffinityDNA revenues has been assumed.

 

Brand, trademark, trade names and domain names are amortized on a straight-line basis over their estimated useful lives of five years.

 

17. BORROWINGS

 

  

2024

A$

  

2023

A$

 
R&D loan   601,000    - 
Insurance premium funding   42,546    - 
Total current borrowings   643,546    - 

 

Refer to note 32 for further information on financial instruments.

 

On March 25, 2024 the Group received a secured loan of A$601,000 from Radium Capital. The loan is secured against the anticipated R&D tax incentive refund for the year ended 30 June 2024 and attracts interest at 1.33% per month. The amount of the loan represents 80% of the estimated R&D tax refund based on qualifying expenditure for the six months to December 31, 2023. The loan plus any interest are payable upon receipt of the Group’s R&D refund.

 

In November 2023 the Group entered into a funding agreement with First Insurance to finance part of the Group’s annual insurance program of approximately A$271,000 over a 9-month period. At balance date the amount remaining outstanding is A$42,546.

 

 F-29 

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (cont.)

 

18. BUSINESS ACQUISITION

 

Prior year’s business acquisition

 

On 14 July 2022, the Company completed the acquisition of AffinityDNA’s direct-to-consumer eCommerce business and distribution rights. The purchase consideration has two parts, A$486,188277,500) on the acquisition date (which has been paid) and a further A$486,188277,500) as contingent consideration. The second payment is payable on the achievement of certain financial targets and remained unpaid at June 30, 2023. The second payment was payable on the achievement of a gross profit target for the 12-month period from the acquisition date. This target was not achieved and therefore no further payment is to be made in respect of the acquisition of AffinityDNA.

 

Costs incurred in respect of acquisition were A$40,625, these have been recognized through profit or loss for the period.

 

The acquisition of AffinityDNA provides the Group with an additional and complimentary platform to further build its existing direct-to-consumer offerings and lifestyle division. The acquisition also expands the Group’s portfolio of tests, geographic (including the UK and US markets) and demographic access. The acquisition provides the group with operational, supply chain, distribution and commercial synergies with its existing EasyDNA direct-to-consumer business that represents goodwill, which cannot be separately measured and identified.

 

Intangible assets arising on acquisition were valued by an independent valuer. Details of net assets acquired and of goodwill are as follows:

 

     
   A$ 
Fair value of consideration transferred     
Amount settled in cash   486,188 
Total consideration   486,188 
Recognized amounts of identifiable net assets     
Intangible assets (1)   41,264 
Deferred tax liabilities   (10,316)
Identifiable net assets   30,948 
Goodwill on acquisition (Note 15)   455,240 

 

The total fair value of the contingent consideration transferred was on the basis that the probability of achieving the earn-out payment at acquisition date was 0%.

 

Goodwill arises on the acquisition of a business combination. Goodwill is calculated as the excess sum of:

 

the consideration transferred;
any non-controlling interest; and
the acquisition date fair value of any previously held equity interest; over the acquisition date fair value of net identifiable assets acquired.

 

Goodwill is not amortized. Instead, goodwill is tested annually for impairment, or more frequently if events or changes in circumstances indicate that it might be impaired, and is carried at cost less accumulated impairment losses. Impairment losses on goodwill are taken to profit or loss and are not subsequently reversed.

 

  (1) Intangible assets relate to brand, trademark, trade names and domain names acquired as part of the business acquisition amounted to A$41,264 (refer to Note 16 for further details). The useful life of these intangibles are amortized on a straight-line basis over their estimated useful lives of five years.

 

AffinityDNA reported revenue of A$1,367,834 and incurred an operating loss of A$43,001 in this year compared to the previous year of A$944,058 and A$89,618, respectively (see Note 26).

 

F-30

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (cont.)

 

19. TRADE AND OTHER PAYABLES (CURRENT)

 

  

2024

A$

  

2023

A$

 
Trade payables   1,458,181    837,952 
Accrued expenses   378,905    618,163 
Other payables   193,437    161,218 
Total current trade and other payables   2,030,523    1,617,333 

 

20. PROVISIONS (CURRENT AND NON-CURRENT)

 

  

2024

A$

  

2023

A$

 
Current provisions          
Annual leave   404,269    328,924 
Long service leave   75,169    121,416 
Make good (1)   91,590    91,590 
Total current provisions   571,028    541,930 
Non-current provisions          
Long service leave   56,021    30,439 
Total non-current provisions   56,021    30,439 
Total provisions   627,049    572,369 

 

(1) Make good provision in respect of the lease of the Melbourne office and laboratory

 

 SCHEDULE OF RECONCILIATION OF PROVISION

  

2024

A$

  

2023

A$

 
Reconciliation of annual leave provision          
Balance at the beginning of the financial year   328,924    312,665 
Add: obligation accrued during the year   532,366    400,780 
Less: utilized during the year   (365,705)   (388,457)
Less: paid off during the year   (91,316)   3,936 
Balance at the end of the financial year   404,269    328,924 
Reconciliation of long service leave provision          
Balance at the beginning of the financial year   151,855    229,304 
Add: obligation accrued during the year   35,779    21,723 
Less: reversal during the year   (56,444)   (472)
Less: paid off during the year   -    (98,700)
Balance at the end of the financial year   131,190    151,855 

 

F-31

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (cont.)

 

21. RIGHT-OF-USE ASSET / (LEASE LIABILITIES)

 

(a) Amounts recognized in the statement of financial position

 

The statement of financial position shows the following amounts relating to leases:

 

   2024   2023 
   A$   A$ 
Right-of-use assets          
Right-of-use assets   211,796    509,553 
           
Lease Liabilities          
Lease liabilities - Current   (208,719)   (303,570)
Lease liabilities - Non-Current   (22,924)   (229,276)
Total   (231,643)   (532,846)

 

(b) Amounts recognized in the statement of profit or loss

 

The statement of profit or loss under general and administrative expenses includes the following amounts relating to leases:

 

   2024   2023 
   A$   A$ 
Depreciation charge of right-of-use assets          
Depreciation Expense (for Leased Assets)   297,780    296,174 
Interest expense (included in finance costs)   17,639    29,515 
           
Low value leases   32,094    32,094 

 

During the financial year ended June 30, 2024, the total cash outflow was A$348,906 (2023: A$336,396).

 

22. CONTRIBUTED EQUITY

 SCHEDULE OF ISSUED AND PAID-UP CAPITAL

  

2024

A$

  

2023

A$

 
Issued and paid-up capital          
Fully paid Ordinary Shares   163,817,863    161,342,707 
Total contributed equity   163,817,863    161,342,707 

 

F-32

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (cont.)

 

22. CONTRIBUTED EQUITY (cont.)

 

Movements in shares on issue

 

 

Year ended June 30, 2024

 

Number of

Shares

  

 

A$

 
Balance at the beginning of the financial year   11,541,658,143    161,342,707 
Share consolidation   (11,426,240,897)   - 
Shares issued during the year   16,800,000    3,111,758 
Add: Exercise of performance rights   -    82,688 
Less: transaction costs arising on share issue   -    (534,611)
Less: valuation of warrants to be issued   -    (101,991)
Balance at the end of the financial year   132,217,246    163,817,863 

 

 

Year ended June 30, 2023

 

Number of

Shares

  

 

A$

 
Balance at the beginning of the financial year   9,233,965,143    155,138,636 
Shares issued during the year   2,307,693,000    7,172,399 
Add: Exercise of performance rights   -    82,688 
Less: transaction costs arising on share issue (i)   -    (916,060)
Less: valuation of warrants to be issued   -    (134,956)
Balance at the end of the financial year   11,541,658,143    161,342,707 

 

(i) The details of securities arising on shares issued for the year ended June 30, 2024 and June 30 2023 are as below:

 

On February 7, 2023, the Company issued 3,846,155 ADSs (769,231 post share and ADS consolidation), each representing six hundred (600) of the Company’s ordinary shares, totaling 2,307,693,000 ordinary shares (23,076,930 post share consolidation), at a purchase price of United States Dollars (US$) US$1.30 per ADS. The gross proceeds for this offering were approximately US$5 million. Against the offering, the Company agreed to issue 250,000 warrants exercisable at US$1.625 each, expiring in 5 years from issue date, to H.C. Wainwright & Co which would form part of cost of raising capital. The said warrants are subject to shareholder approval at the Company’s 2023 annual general meeting.
On December 18, 2023 the company undertook a share consolidation of its equity securities on the basis of one (1) ordinary share for every 100 ordinary shares held. The company also simultaneously adjusted its ADS Ratio from the then-existing ratio of one ADS representing 600 ordinary shares to one ADS representing 30 ordinary shares. Our ordinary shares continue to be traded on the ASX, under the symbol “GTG.” The ADSs continue to be traded on The Nasdaq Stock Exchange under the symbol “GENE”.
On April 19, 2024 the Company issued 16,800,000 ordinary shares represented by 560,000 ADSs at an offering price of US$2.00 per ADS. This was part of an offering to institutional investors who also entered definitive agreement to the purchase and sale of pre-funded warrants to purchase 13,200,000 ordinary shares represented by 440,000 ADSs, at an offering price of US$1.999 per pre-funded warrant. Each ADS represents 30 ordinary shares. The pre-funded warrants will have an exercise price of US$0.001 per ADS, will be immediately exercisable and may be exercised at any time until all of the pre-funded warrants issued in the offering are exercised in full. On exercise of the pre-funded warrants ordinary shares represented by the ADSs will be issued. The gross proceeds from this offering were approximately US$2 million.

 

Terms and conditions of contributed equity

 

Ordinary shares have the right to receive dividends as declared and, in the event of winding up the Company, to participate in the proceeds from the sale of all surplus assets in proportion to the number of and amounts paid up on shares held. Ordinary shares, which have no par value, entitle their holder to one vote, either in person or by proxy, at a meeting of the Company.

 

F-33

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (cont.)

 

23. RESERVES

 SCHEDULE OF RESERVES

  

2024

A$

  

2023

A$

 
Foreign currency translation   831,142    847,408 
Share-based payments   3,557,486    5,688,148 
Total reserves   4,388,628    6,535,556 
Reconciliation of foreign currency translation reserve          
Balance at the beginning of the financial year   847,408    746,819 
Add: net currency translation gain / (loss)   (16,266)   100,589 
Balance at the end of the financial year   831,142    847,408 
Reconciliation of share-based payments reserve          
Balance at the beginning of the financial year   5,688,148    10,751,832 
Add: share-based payments expense   124,177    - 
Add: Issue of performance rights   -    125,500 
Add: Valuation of warrants   101,991    134,956 
Less: Options/warrants expired   (2,356,830)   (5,241,452)
Less: Exercise of performance rights   -    (82,688)
Balance at the end of the financial year   3,557,486    5,688,148 

 

Share Based Payments Reserve

 

Nature and Purpose

 

The share-based payment reserve records items recognized as expenses on valuation of warrants, share options, and performance shares issued to capital raising agents, key management personnel, other employees, and eligible contractors.

 

Warrants

 

During the financial year ended June 30, 2024, the following warrants were issued to as a part of capital raising costs.  

 

      2024 
Valuation date      December 22, 2023  
Grant Date      December 22, 2023 
Warrants issued      65,000 
Underlying asset price  US$   2.21 
Risk free rate      4.175%
Volatility      80%
Exercise price presented in United States Dollar  US$   2.50 
Exchange rate at valuation date  A$   1 to USD$0.680 
Exercise price presented in Australian Dollar  A$   3.676 
Time to maturity of underlying warrants (years)      5.32 
Value per warrant in Australian Dollar  A$   1.569 
Model used      Black Scholes 
Valuation amount  A$   101,991 

 

During the financial year ended June 30, 2023, the following warrants were issued to as a part of capital raising costs.

 

      2023 
Valuation date      December 20, 2022 
Grant Date      December 20, 2022 
Warrants issued      250,000 
Underlying asset price  A$   1.525 
Risk free rate      4.1%
Volatility      75%
Exercise price presented in United States Dollar  US$   1.625 
Exchange rate at valuation date  A$   1 to USD$0.669 
Exercise price presented in Australian Dollar  A$   2.429 
Time to maturity of underlying warrants (years)      5.12 
Value per warrant in Australian Dollar  A$   0.5398 
Model used      Black Scholes 
Valuation amount  A$   134,956 

 

F-34

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (cont.)

 

23. RESERVES (cont.)

 

No warrants were issued for the financial year ended June 30, 2022.

 

Share Options

 

No share options were issued during the financial year ending June 30, 2024, June 30, 2023 or June 30, 2022.

 

Performance Rights

 

No Performance Rights were issued for financial years ended June 30, 2024 and June 30, 2023.

 

The following information relates to issued Performance Rights for the year ended June 30, 2022:

 

Performance rights issued to 

Grant date for

performance rights issued

  Pre share consolidation  

 

Post share consolidation

 
            
Adam Kramer (2)  March 3, 2021   3,937,500    - 
Mike Tonroe (2)  June 15, 2021   40,000,000    - 
Carl Stubbings (1)  September 22, 2021   20,000,000    200,000 
Kevin Camilleri (1)  November 22, 2021   20,000,000    200,000 

 

Note:

 

(1) As a result of the share consolidation that occurred on December 18, 2023 whereby the company’s equity securities where consolidated on the basis of one (1) ordinary share for every 100 ordinary shares held, the number of performance rights of Carl Stubbings and Kevin Camilleri were reduced to 200,000 each, as noted above.

 

(2) The performance rights issued to Adam Kramer and Mike Tonroe were forfeited in the year ended June 30, 2023 prior to the share consolidation.

 

 

  2022
Grant Date     March 3,
2021
   June 15,
2021
   September 22,
2021
   November 22,
2021
 
Performance rights issued      3,937,500    40,000,000    20,000,000    20,000,000 
Post share consolidation      39,375    400,000    200,000    200,000 
Dividend yield      -    -    -    - 
Historic volatility and expected volatility      161    152    149    150%
Performance rights exercise price  A$   0.009    0.0069    0.0047    0.0038 
Fair value of performance rights at grant date  A$   0.012    0.0073    0.0052    0.0042 
Weighted average exercise price  A$   0.008    0.008    0.008    0.008 
Risk-free interest rate      0.110    0.085    0.160    0.960%
Expected life of the performance rights      2.02 years    3 years    3 years    3 years 
Model used      Binomial    Binomial    Binomial    Binomial 
Valuation amount  A$   47,250    291,428    103,104    83,216 

 

Foreign currency translation reserve

 

Nature and Purpose

 

Exchange differences arising on translation of the foreign controlled entities are recognized in other comprehensive income as described in Note 2(e) and accumulated in a separate reserve within equity. The cumulative amount is reclassified to profit or loss when the net investment is disposed of.

 

F-35

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (cont.)

 

24. ACCUMULATED LOSSES

 SCHEDULE OF ACCUMULATED LOSSES

  

2024

A$

  

2023

A$

 
Balance at the beginning of the financial year   (156,715,687)   (150,206,216)
Add: net loss attributable to owners of Genetic Technologies Limited   (12,017,219)   (11,750,923)
Less: Options/warrants expired   2,356,830    5,241,452 
Balance at the end of the financial year   (166,376,076)   (156,715,687)

 

25. SHARE OPTIONS

 

Employee Option Plan

 

The fair value of options granted under an Employee Option Plan is recognized as an employee benefit expense with a corresponding increase in equity. The fair value is measured at grant date and recognized over the vesting period over which the service vesting conditions are to be satisfied. Employee Option Plan options have no other vesting conditions. The fair value at grant date is determined by management with the assistance of an independent valuer, using a Black-Scholes option pricing model or a Binomial model simulation analysis. The total amount to be expensed is determined by reference to the fair value of the options granted:

 

  including any market performance conditions (where the exercise price, vesting or exercisability is related to the market price of an entity’s instruments)
  excluding the impact of any service and non-market performance vesting conditions (e.g. remaining an employee over a specified time period)

 

The cumulative employee benefits expense recognized at each reporting date until vesting date reflects (i) the extent to which the vesting period has expired; and (ii) the number of awards that, in the opinion of the Directors of the Company, will ultimately vest. This opinion is formed based on the best information available at balance date.

 

Where the terms of an equity-settled award are modified, as a minimum an expense is recognized as if the terms had not been modified. In addition, an expense is recognized for any increase in the value of the transaction as a result of the modification, as at the date of modification. Where appropriate, the dilutive effect of outstanding options is reflected as additional share dilution in the computation of diluted earnings per share. The Company’s policy is to treat the options of terminated employees as forfeitures if termination occurs prior to vesting conditions being reached.

 

On November 30, 2001, the Directors of the Company established a Staff Share Plan. On November 19, 2008, the shareholders of the Company approved the introduction of a new Employee Option Plan. Under the terms of the respective Plans, the Directors may, at their discretion, grant options over the ordinary shares in the Genetic Technologies Limited to executives, consultants, employees, and former Non-Executive Directors, of the Company. The options, which are granted at nil cost, are not transferable and are not quoted on the ASX. As at June 30, 2024 there were no options held under the Plans.

 

F-36

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (cont.)

 

25. SHARE OPTIONS (cont.)

 

(i) Fair value of options granted

 

During the year ended June 30, 2024, there were no options granted (2023: Nil, 2022: Nil).

 

Set out below are summaries   of all unlisted options, including ESOP which were issued in prior periods:

 

   2024   2023 
  

Average

exercise price

per share

option A$

  

Number of

options

  

Average

exercise price

per share

option A$

  

Number of

options

 
Opening balance   0.008    8,400,000    0.008    492,400,000 
Lapsed during the year   0.008    (8,400,000)   0.008    (481,500,000)
Forfeited during the year   0.008    -    0.008    (2,500,000)
Closing balance   -    -    0.008    8,400,000 

 

The movements in the number of options granted under the Employee share plans are as follows:  

 

   2024   2023 
  

Average

exercise price

per share

option A$

  

Number of

options

  

Average

exercise price

per share

option A$

  

Number of

options

 
Balance at the beginning of the financial year   0.008    8,400,000    0.008    10,900,000 
Add: options granted during the year   -    -    -    - 
Less: options lapsed during the year   0.008    (8,400,000)   -    - 
Less: options forfeited during the year   -    -    0.008    (2,500,000)
Balance at the end of the financial year   -    -    0.008    8,400,000 

 

F-37

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (cont.)

 

25. SHARE OPTIONS (cont.)

 

The number of options outstanding as at June 30, 2024 and June 30, 2023 by ASX   code, including the respective dates of expiry and exercise prices, are tabled below. The options tabled below are not listed on ASX.

 

   2024   2023 
Unlisted options 

Average

exercise price

per share

option A$

  

Number of

options

  

Average

exercise price

per share

option A$

  

Number of

options

 
ESOP options (expiring December 1, 2023)   -    -    0.008    8,400,000 
Total   -    -    0.008    8,400,000 
Exercisable at the end of the financial year   -    -    0.008    8,400,000 

 

 

The weighted average remaining contractual life of options outstanding as at June 30, 2024 was 0 years (2023: 0.42 years).

 

26. SEGMENT INFORMATION

 

(a) Identification of reportable segments

 

Management considers the business from a business unit perspective and has identified three reportable segments:

 

EasyDNA: relates to EasyDNA branded test sales and expenses.

 

AffinityDNA: relates to AffinityDNA branded test sales and expenses.

 

GeneType / Corporate: relates to geneType branded test sales and expense, includes corporate charges.

 

F-38

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (cont.)

 

26. SEGMENT INFORMATION (cont.)

 

(b) Business unit segments

 

The segment information for the reportable segments is as follows:

 

2024  AffinityDNA   EasyDNA  

geneType/

Corporate

   Total 
   A$   A$   A$   A$ 
                 
Segment revenue & other income                    
Revenue from contracts with customers   1,367,834    6,162,865    134,085    7,664,784 
Other income   -    -    1,848,731    1,848,731 
Finance income   -    -    119,511    119,511 
Total segment revenue & other income   1,367,834    6,162,865    2,102,327    9,633,026 
                     
Segment expenses                    
Depreciation and amortization   (24,703)   (30,157)   (480,028)   (534,888)
Finance costs   (1,698)   (532)   (49,392)   (51,622)
Raw materials and change in inventories   (545,875)   (2,815,189)   (399,246)   (3,760,310)
Commissions   (57,155)   (159,259)   -    (216,414)
Employee benefits expenses   (275,143)   (1,440,129)   (5,870,835)   (7,586,107)
Advertising and promotional expenses   (87,581)   (1,025,290)   (1,496,444)   (2,609,315)
Professional fees   (197,508)   (80,199)   (1,007,354)   (1,285,061)
Research and development expenses   -    -    (752,754)   (752,754)
Impairment expenses   -    (1,332,000)   -    (1,332,000)
Other expenses   (221,172)   (788,910)   

(2,511,692

)   

(3,521,774

)
Total segment expenses   (1,410,835)   (7,671,665)   (12,567,745)   (21,650,245)
                     
Income tax credit   -    -    -    - 
Loss for the period   (43,001)   (1,508,800)   (10,465,418)   (12,017,219)
Total Segment Assets   528,078    1,838,706    3,819,736    6,186,521 
Total Segment Liabilities   (204,852)   (1,156,382)   (2,994,872)   (4,356,106)

 

2023  AffinityDNA   EasyDNA  

geneType/

Corporate

   Total 
   A$   A$   A$   A$ 
                 
Segment revenue & other income                    
Revenue from contracts with customers   944,058    7,698,605    43,455    8,686,118 
Other income   -    17    1,836,805    1,836,822 
Finance income   -    -    220,161    220,161 
Total segment revenue & other income   944,058    7,698,622    2,100,421    10,743,101 
                     
Segment expenses                    
Depreciation and amortization   (22,310)   (30,074)   (624,199)   (676,583)
Finance costs   (2,693)   (2,132)   (24,690)   (29,515)
Raw materials and change in inventories   (404,660)   (3,896,000)   (34,605)   (4,335,265)
Commissions   (42,727)   (193,292)   -    (236,019)
Employee benefits expenses   (209,219)   (1,593,699)   (4,405,148)   (6,208,066)
Advertising and promotional expenses   (35,926)   (1,681,875)   (994,552)   (2,712,353)
Professional fees   (62,522)   (18,414)   (1,279,704)   (1,360,640)
Research and development expenses   -    -    (1,281,157)   (1,281,157)
Impairment expenses   -    (2,125,725)   -    (2,125,725)
Other expenses   (253,619)   (1,028,670)   (2,404,741)   (3,687,030)
Total segment expenses   (1,033,676)   (10,569,881)   (12,513,521)   (22,652,353)
                     
Income tax credit   -    -    158,329    158,329 
Loss for the period   (89,618)   (2,871,259)   (10,254,771)   (11,750,923)
Total Segment Assets   625,421    3,320,967    10,909,849    14,856,237 
Total Segment Liabilities   (208,468)   (1,308,206)   (2,176,987)   (3,693,661)

 

F-39

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (cont.)

 

26. SEGMENT INFORMATION (cont.)

 

2022  AffinityDNA   EasyDNA  

geneType/

Corporate

   Total 
   A$   A$   A$   A$ 
                 
Segment revenue & other income                    
Revenue from contracts with customers   -    5,989,782    805,034    6,794,816 
Other income   -    -    2,783,391    2,783,391 
Finance income   -    -    36,256    36,256 
Total segment revenue & other income   -    5,989,782    3,624,681    9,614,463 
                     
Segment expenses                    
Depreciation and amortization   -    -    (578,668)   (578,668)
Finance costs   -    -    (15,215)   (15,215)
Raw materials and change in inventories   -    (2,951,815)   (61,719)   (3,013,534)
Commissions   -    (156,625)   -    (156,625)
Employee benefits expenses   -    (1,235,657)   (4,632,998)   (5,868,655)
Advertising and promotional expenses   -    (1,079,291)   (806,111)   (1,885,402)
Professional fees   -    (21,685)   (1,813,759)   (1,835,444)
Research and development expenses   -    -    (705,507)   (705,507)
Impairment expenses   -    -    (564,161)   (564,161)
Other expenses   -    (721,226)   (1,433,149)   (2,154,375)
Total segment expenses   -    (6,166,299)   (10,611,287)   (16,777,586)
                     
Income tax credit   -    -    32,125    32,125 
Loss for the period   -    (176,517)   (6,954,481)   (7,130,998)
Total Segment Assets   -    2,668,618    18,133,080    20,801,698 
Total Segment Liabilities   -    (1,969,878)   (2,400,749)   (4,370,627)

 

F-40

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (cont.)

 

26. SEGMENT INFORMATION (cont.)

 

(c) Geographic information

 

In presenting the geographic information, segment revenue has been based on geographic location of customers. The geographic information for the reportable segments is as follows:

 

2024  AffinityDNA   EasyDNA  

geneType/

Corporate

   Total 
   A$   A$   A$   A$ 
                 
America and Canada   21,510    1,557,464    87,987    1,666,961 
Europe Middle East and Africa   1,014,614    3,055,185    -    4,069,799 
Latin America   6,860    183,562    -    190,422 
Asia Pacific   324,850    1,366,654    46,098    1,737,602 
Total revenue   1,367,834    6,162,865    134,085    7,664,784 

 

2023  AffinityDNA   EasyDNA  

geneType/

Corporate

   Total 
   A$   A$   A$   A$ 
                 
America and Canada   15,056    2,190,352    36,761    2,242,169 
Europe Middle East and Africa   766,040    3,728,586    -    4,494,626 
Latin America   144,727    177,306    -    322,033 
Asia Pacific   18,235    1,602,361    6,694    1,627,290 
Total revenue   944,058    7,698,605    43,455    8,686,118 

 

F-43

 

2022  AffinityDNA   EasyDNA  

geneType/

Corporate

   Total  
   A$   A$   A$   A$ 
                 
America and Canada   -    2,267,474    7,077    2,274,551 
Europe Middle East and Africa   -    2,501,302    -    2,501,302 
Latin America   -    128,840    -    128,840 
Asia Pacific   -    1,092,166    797,957    1,890,123 
Total revenue   -    5,989,782    805,034    6,794,816 

 

27. SHARE BASED PAYMENTS

 

(a) Employee option plan

 

There were no new options issued under the Employee Option Plan during the financial years ending June 30, 2024, June 30, 2023 and June 30, 2022.

 

(b) Performance Rights Issuance

 

After receiving requisite shareholder approval on December 10, 2020, the Company issued performance rights to Directors of the Company as follows:

 

  5,000,000 Class A Performance Rights to Dr. Lindsay Wakefield
  7,500,000 Class A Performance Rights, 25,000,000 Class B Performance Rights and 25,000,000 Class C Performance Rights to Dr. Jerzy Muchnicki
  7,500,000 Class A Performance Rights, 25,000,000 Class B Performance Rights and 25,000,000 Class C Performance Rights to Mr. Peter Rubinstein
  5,000,000 Class A Performance Rights to Mr. Nicholas Burrows

 

These performance rights above lapsed during the year ended June 30, 2024.

 

F-41

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (cont.)

 

27. SHARE BASED PAYMENTS (cont.)

 

(b) Performance Rights Issuance (cont.)

 

During the financial year ending June 30, 2022, the Board has approved for the following performance rights to be issued to the Key Management Personnel below:

 

  40,000,000 Performance Rights to Mr. Michael Tonroe
  20,000,000 Performance Rights to Mr. Carl Stubbings
  20,000,000 Performance Rights to Mr. Kevin Camilleri

 

The performance rights issued to Mr. Michael Tonroe were forfeited during the 2023 financial year following his resignation. The performance rights issued to Mr. Carl Stubbings and Mr. Kevin Camilleri remain exercisable at June 30, 2024, if vesting conditions are met. However, following a share consolidation of equity securities on December 18, 2023 on the basis of one (1) security for every 100 securities held, Mr. Carl Stubbings and Mr. Kevin Camilleri hold 200,000 performance rights each.

 

The Company has accounted for these performance rights in accordance with its accounting policy for share-based payment transactions and has recorded a share-based payments expense of A$124,177 in the Statement of Profit or Loss and Other Comprehensive Income for the current reporting period (2023: A$125,500 and 2022: A$437,508).

 

Valuation of Performance Rights

 

The Performance Rights are not currently quoted on the ASX and as such have no ready market value. The performance rights each grant the holder a right of grant of one ordinary Share in the Company upon vesting of the performance rights for nil consideration. Accordingly, the performance rights may have a fair value at the date of their grant. Various factors impact upon the value of performance rights including:

 

  the period outstanding before the expiry date of the performance rights;
  the underlying price or value of the securities into which they may be converted;
  the proportion of the issued capital as expanded consequent upon conversion of the performance rights into Shares (i.e. whether or not the shares that might be acquired upon exercise of the options represent a controlling or other significant interest); and
  the value of the shares into which the performance rights may be converted.

 

There are various formulae which can be applied to determining the theoretical value of performance rights (including the formula known as the Black-Scholes Model valuation formula and the Binomial model).

 

The Company commissioned an independent valuation of the performance rights. The independent valuer has applied the Binomial Model in providing the valuation of the performance rights.

 

F-42

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (cont.)

 

27. SHARE BASED PAYMENTS (cont.)

 

Valuation of Performance Rights (cont.)

 

For the performance Rights issued during the financial year ending June 30, 2022, the data relied upon in applying the Binomial model was:

 

  a) exercise price being 0.0 cents per performance right for all classes;
  b) VWAP hurdle for key management personnel (15 days consecutive share price hurdle) equaling A$0.016 for performance rights;
  c) sales and market cap hurdles as listed above for performance rights;
  d) the continuously compounded risk-free rate is as per table below (calculated based on yield of Australian government bonds, as at the grant dates for a 2 or 3 year period matching the expected life of performance rights);
  e) the expected option life of 3 years for key management personnel and 2 years for others; and
  f) a volatility measure between 149% to 161%.

 

Performance hurdles

 

Key management personnel, being the recipients of the performance rights, must remain engaged by the Company at the time of satisfaction of the performance hurdle in order for the relevant performance right to vest.

 

There were no performance rights issued for the year ended June 30, 2023 or June 30, 2024.

 

Performance rights issued during the year ended June 30, 2022

 

The performance rights for key management personnel vest and are exercisable upon the Share price reaching A$0.016 while or greater for more than 15-day consecutive ASX trading days.

 

F-43

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (cont.)

 

27. SHARE BASED PAYMENTS (cont.)

 

Performance rights issued during prior year

 

  

Number of

Performance

Rights

issued

  

Valuation

(cents)

  

Total fair

value of

Performance

Rights

A$

  

Expense

accounted

for in 2022

A$

  

Expense

accounted

for during

the year

A$

 
Mr. Carl Stubbings   20,000,000    0.52    103,104    26,459    34,368 
Mr. Kevin Camilleri   20,000,000    0.42    83,216    16,719    27,739 
Total   40,000,000         186,320    43,178    62,107 

 

The performance rights issued to Mr. Carl Stubbings and Mr. Kevin Camilleri remain exercisable at June 30, 2024, if vesting conditions are met. However, following a share consolidation of equity securities on December 18, 2023 on the basis of one (1) security for every 100 securities held, Mr. Carl Stubbings and Mr. Kevin Camilleri hold 200,000 performance rights each.

 

 

Performance rights issued during prior year, that lapsed during the financial year ending June 30, 2023

 

  

Number of

Performance

Rights

issued

  

Valuation

(cents)

  

Total fair

value of

Performance

Rights

A$

  

Expense

accounted

for in 2022

A$

  

Expense

accounted

for during

the year

A$

 
Mr. Michael Tonroe   40,000,000    0.73    291,428    101,043    (101,043)
Total   40,000,000         291,428    101,043    (101,043)

 

  

Number of

Performance

Rights

issued

  

Valuation per

Class D

(cents)

  

Total fair

value of

Class D

Performance

Rights

A$

  

Expense

accounted

for in 2022

A$

  

Expense

accounted

for during

the year

A$

 
Mr Simon Morriss   60,000,000    0.96    574,037    191,346    191,346 

 

  

Number of

Performance

Rights

issued

  

Valuation per

Class E

(cents)

  

Total fair

value of

Class E

Performance

Rights

A$

  

Expense

accounted

for in 2022

A$

  

Expense

accounted

for during

the year

A$

 
Mr Stanley Sack   3,937,500    0.90    35,438    35,438    - 

 

Performance rights issued during prior years, that lapsed during the financial year ending June 30, 2022

 

  

Number of
Performance

Rights

issued

  

Valuation per

Class A

(cents)

  

Total fair

value of

Class A

Performance

Rights

A$

  

Expense

accounted

for in 2021

A$

  

Expense

accounted

for during

for in 2022

A$

 
Dr. Lindsay Wakefield   3,750,000    0.77    28,875    9,625    4,010 
Dr. Jerzy Muchnicki   6,250,000    0.77    48,125    16,042    6,684 
Mr. Peter Rubinstein   5,000,000    0.77    38,500    12,833    5,347 
Total   15,000,000         115,500    38,500    16,041 

 

F-44

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (cont.)

 

27. SHARE BASED PAYMENTS (cont.)

 

(c) Expenses arising from share-based payment transactions

 

Total expenses arising from share-based payment transactions recognized during the period as part of employee benefit expense and equity raising expenses were as follows:

 

   2024   2023   2022 
   A$   A$   A$ 
Warrants to be issued H.C. Wainwright, subject to shareholder approval   101,991    134,956    - 
Performance rights issued   124,177    125,500    436,119 
Options issued under employee option plan   -    -    1,389 
Total expenses arising from share-based payments   226,168    260,456    437,508 

 

28. CAPITAL COMMITMENTS

 

There were no significant contracted capital expenditures at the end of the reporting periods ending June 30, 2024, 2023 & 2022.

 

29. AUDITORS’ REMUNERATION

 

  

2024

A$

  

2023

A$

  

2022

A$

 
Audit and assurance services               
PricewaterhouseCoopers in respect of:               
Audit (1)   -    -    20,000 
Grant Thornton Audit Pty Ltd in respect of:               
Audit (1)   332,706    320,569    241,882 
All other fees (2)   -    -    30,000 
Total remuneration in respect of audit services   332,706    320,569    305,833 

 

F-45

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (cont.)

 

29. AUDITORS’ REMUNERATION (cont.)

 

  (1) Audit fees consist of services that would normally be provided in connection with statutory, half year review, and regulatory filings or engagements, including services that generally only the independent accountant can reasonably provide.
     
  (2) All other fees consist of fees billed for financial and information technology due diligence services in respect of the Company’s acquisition of the business and assets associated with the EasyDNA brand that completed on August 13, 2021.

 

30. RELATED PARTY DISCLOSURES

 

Ultimate parent

 

Genetic Technologies Limited is the ultimate Australian parent company. As at the date of this Report, no shareholder controls more than 50% of the issued capital of the Company.

 

Transactions within the Company and with other related parties

 

During the financial years ended June 30, 2024, 2023 and 2022, other than compensation paid to directors and other members of key management personnel, see “Item 6.B Compensation”, the only transactions between entities within the Company and other related parties are as listed below. Except where noted, all amounts were charged on similar to market terms and at commercial rates.

 

Performance Rights Issuance

 

During the financial year ending June 30, 2022, the Board has approved for the following Performance Rights to be issued to the Key Management Personnel below:

 

  40,000,000 Performance Rights to Mr. Michael Tonroe
  20,000,000 Performance Rights to Mr. Carl Stubbings
  20,000,000 Performance Rights to Mr. Kevin Camilleri

 

The performance rights issued to Mr. Michael Tonroe were forfeited during the 2023 financial year following his resignation. The performance rights issued to Mr. Carl Stubbings and Mr. Kevin Camilleri remain exercisable at June 30, 2024, if vesting conditions are met. However, following a share consolidation of equity securities on December 18, 2023 on the basis of one (1) security for every 100 securities held, Mr. Carl Stubbings and Mr. Kevin Camilleri hold 200,000 performance rights each.

 

The Company has accounted for these Performance Rights in accordance with its accounting policy for share-based payment transactions and has recorded A$124,177 (2023: A$125,500 and 2022: A$437,508) of associated expense in the reporting period.

 

F-46

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (cont.)

 

30. RELATED PARTY DISCLOSURES (cont.)

 

Mr. Phillip Hains (Former Chief Financial Officer)

 

On July 15, 2019, the Company announced that it had appointed Mr. Phillip Hains (MBA, CA) as the Chief Financial Officer who has over 30 years of extensive experience in roles with a portfolio of ASX and NASDAQ listed companies and provides CFO services through his firm The CFO Solution. Prior to this point the Company had a similar arrangement with The CFO Solution, where it would engage and provide services of overall CFO, accounting and other finance related activities.

 

During the reporting period, the Company had not transacted with The CFO Solution towards provision of overall CFO, accounting and other finance related activities (2023: Nil, 2022: A$91,615).

 

Mr. Stanley Sack (former Chief Operating Officer)

 

On May 18, 2020, the Company appointed Mr. Stanley Sack who provides consulting in the capacity of Chief Operating Officer. Mr. Sack has spent 15 years in large listed entities in executive positions managing large business divisions. He has worked with a high-net- worth family managing all their operating businesses and private equity activities. Mr. Sack built an Allied Health Business in the aged care and community care space which became the biggest Mobile Allied Health Business in Australia, and was recently sold to a large medical insurance company.

 

During the reporting period, the Company had not transacted with Mr. Stanley Sack’s entity Cobben Investments towards provision of consulting services in relation to provision of duties related to Chief Operating Officer of the Company (2023: Nil & 2022: A$107,187).

 

Mr. Peter Rubinstein (Non-Executive Director and Chairman)

 

During the financial year ended June 30, 2020, the Board approved to obtain consulting services in relation to capital raises, compliance, NASDAQ hearings and investor relations from its Non-Executive Director and current Chairman, Mr. Peter Rubinstein. The services procured were through Mr. Peter Rubinstein’s associate entity ValueAdmin.com Pty Ltd and amounted to A$45,000 (2023: A$60,000 & 2022: A$60,000) that is included as part of the cash salary and fees in the remuneration report as at June 30, 2024.

 

Dr. Jerzy Muchnicki (Non-Independent Non-Executive Director) 

 

During the financial year ended June 30, 2022, the Board approved to obtain consulting services in relation to PRS and Germline Integration; Epigenetics; Somatic Testing; NIPT; Carrier testing and related marketing advice from its Non-Independent Non-Executive Director, Dr. Jerzy Muchnicki. The services procured were through Dr. Jerzy Muchnicki’s private consultancy and amounted to A$22,692 (2023: Nil & 2022: A$50,000) that is included as part of the cash salary and fees in the remuneration report as at June 30, 2024.

 

Mr. Kevin Camilleri (Chief Executive Officer of EasyDNA) 

 

The Company leases its offices in Malta at 36 Triq ir-Russell, Kappara from Kevin Camilleri. The lease commenced August 13, 2021 and ends December 31, 2024. Extension beyond December 31, 2024 requires a new lease to be entered. After the first year, the lease can be terminated by the lessee, at any time, by providing three months’ notice. A Euro 4,500 refundable security deposit was paid at inception. Annual rents during the term of the lease are fixed as follows; years ending December 31, 2021 (August 13, 2021 to December 31, 2021) Euro 6,920, 2022 Euro 18,900, 2023 Euro 19,845 and 2024 Euro 20,844. Rent paid amounted to A$34,335 (2023: A$31,046 & 2022: A$29,336).

 

There were no transactions with parties related to Key Management Personnel during the year other than those disclosed above.

 

F-47

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (cont.)

 

30. RELATED PARTY DISCLOSURES (cont.)

 

Details of Directors and Key Management Personnel as at balance date

 

Directors

 

  Mr. Peter Rubinstein (Independent Non-Executive & Chairman)
  Dr. Jerzy Muchnicki (Non-Independent Non-Executive)
  Dr. Lindsay Wakefield (Independent Non-Executive)
  Mr. Nicholas Burrows (former Independent Non-Executive) (appointed September 1, 2019, resigned February 15, 2024)

 

Key Management Personnel (KMPs)

 

  Mr. Simon Morriss (Chief Executive Officer) (appointed February 1, 2021)
  Mr. Tony Di Pietro (former Chief Financial Officer) (appointed November 28, 2022, resigned March 29, 2024)
  Ms. Kathryn Andrews (Chief Financial Officer) (appointed March 25, 2024, resigned July 23, 2024)
  Mr. Kevin Camilleri (Chief Executive Officer of EasyDNA) (appointed August 16, 2021)
  Mr. Carl Stubbings (Chief Commercial Officer) (appointed September 1, 2021)

 

  

2024

A$

  

2023

A$

  

2022

A$

 
Remuneration of Key Management Personnel               
Short-term employee benefits   1,447,593    1,529,124    1,894,413 
Post-employment benefits   114,820    113,511    125,822 
Share-based payments   129,248    253,453    387,046 
Other long-term benefits   8,239    10,978    4,797 
Termination benefits   -    -    - 
Total remuneration of Key Management Personnel   1,699,900    1,907,066    2,412,078 

 

F-48

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (cont.)

 

31. SUBSIDIARIES

 

The following diagram is a depiction of the Company structure as at June 30, 2024.

 

   Incorporation  Company interest (%)   Net carrying value (A$) 
Name of Company  details  2024   2023   2024   2023 
Entities held directly by parent                       
GeneType Pty. Ltd. (Dormant)  September 5, 1990 Victoria, Australia   100%   100%   -    - 
Genetic Technologies Corporation Pty. Ltd. (Genetic testing)  October 11, 1996 NSW, Australia   100%   100%   2    2 
Gene Ventures Pty. Ltd. (1) (Dormant)  March 7, 2001 NSW, Australia   100%   100%   10    10 
GeneType Corporation (Dormant)  December 18, 1989 California, U.S.A.   100%   100%   -    - 
geneType Inc. (2) (formerly Phenogen Sciences Inc.)  June 28, 2010 Delaware, U.S.A.   100%   100%   30,779,326    11,006 
Hainan Aocheng Gene Technology Co Ltd  March 18, 2019 Hainan, China   100%   100%   -    - 
Genetic Technologies HK Ltd  March 18, 2019 Hong Kong, China   100%   100%   -    - 
Helix Genetics Limited  July 7, 2021 Malta   100%   100%   1,928    1,910 
Genetype UK Limited  April 26, 2022 United Kingdom   100%   100%   190    176 
Total carrying value                30,781,456    13,104 

 

  (1) On 26 April 2018, the name of RareCellect Pty Ltd (ACN 096 135 9847) was changed to Gene Ventures Pty Ltd (ACN 096 135 947)
  (2) On 3 April 2023, the name of Phenogen Sciences Inc. was changed to geneType Inc.

 

32. FINANCIAL RISK MANAGEMENT

 

This note explains the Company’s exposure to financial risks and how these risks could affect the Company’s future financial performance.

 

The Company’s risk management is predominantly controlled by the board. The board monitors the Company’s financial risk management policies and exposures and approves substantial financial transactions. It also reviews the effectiveness of internal controls relating to market risk, credit risk and liquidity risk.

 

(a) Market risk

 

(i) Foreign exchange risk

 

The Company undertakes certain transactions denominated in foreign currency and is exposed to foreign currency risk through foreign exchange rate fluctuations.

 

Foreign exchange rate risk arises from financial assets and financial liabilities denominated in a currency that is not the Company’s functional currency. Exposure to foreign currency risk may result in the fair value of future cash flows of a financial instrument fluctuating due to the movement in foreign exchange rates of currencies in which the Company holds financial instruments which are other than the Australian dollar (AUD) functional currency of the Company. This risk is measured using sensitivity analysis and cash flow forecasting. The cost of hedging at this time outweighs any benefits that may be obtained.

 

The consolidated financial statements are presented in Australian Dollar ($), which is Genetic Technologies Limited’s functional and presentational currency.

 

F-49

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (cont.)

 

32. FINANCIAL RISK MANAGEMENT (cont.)

 

Exposure

 

The Company’s exposure to foreign currency risk at the end of the reporting period, expressed in Australian dollar, was as follows:

 

   June 30, 2024   June 30, 2023 
   USD   CAD   EUR   GBP   NZD   USD   CAD   EUR    GBP 
   A$   A$   A$   A$   A$   A$   A$   A$    A$ 
Cash at Bank / on hand   492,038    38,571    129,130    124,588    39,600    1,296,082    10,766    100,369    41,858 
Trade and other receivables   82,717    20,388    41,303    36,324    6,142    611,193    11,252    17,690    26,376 
Trade and other payables   (559,850)   (4,557)   (262,179)   (50,810)   (3,553)   (455,167)   (3,795)   (151,327)   (31,441)

 

Sensitivity

 

As shown in the table above, the Company is primarily exposed to changes in USD/AUD exchange rates. The sensitivity of profit or loss to changes in the exchange rates arises mainly from USD denominated financial instruments.

 

The Company has conducted a sensitivity analysis of its exposure to foreign currency risk. Based on the financial instruments held as at June 30, 2024, had the Australian dollar weakened/strengthened by 3.65% (2023: 3.65%) against the USD with all other variables held constant, the Company’s post-tax loss for the year would have been A$544 lower/higher (2023: A$52,988 lower/higher).

 

USD: 3.65% (2023: 3.65%)

 

The Company is less sensitive to movements in the AUD/USD exchange rates in 2024 than 2023 because of the reduced amount of USD denominated cash and cash equivalents. The Company’s exposure to other foreign exchange movements is not material.

 

(b) Credit risk

 

Exposure to credit risk relating to financial assets arises from the potential non-performance by counterparties of contract obligations that could lead to a financial loss to the Company.

 

(i) Risk management

 

Credit risk is managed through the maintenance of procedures (such as the utilization of systems for the approval, granting and renewal of credit limits, regular monitoring of exposures against such limits and monitoring the financial stability of significant customers and counterparties), ensuring to the extent possible that customers and counterparties to transactions are of sound credit worthiness. Such monitoring is used in assessing receivables for impairment. Credit terms are normally 30 days from the invoice date.

 

Risk is also minimized through investing surplus funds in financial institutions that maintain a high credit rating.

 

(ii) Security

 

For some trade receivables the Company may obtain security in the form of guarantees, deeds of undertaking or letters of credit which can be called upon if the counterparty is in default under the terms of the agreement.

 

(iii) Impairment of financial assets

 

The Company has one type of financial asset subject to the expected credit loss model:

 

  trade receivables for sales of inventory

 

While cash and cash equivalents are also subject to the impairment requirements of IFRS 9, the identified impairment loss was immaterial.

 

F-50

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (cont.)

 

32. FINANCIAL RISK MANAGEMENT (cont.)

 

(b) Credit risk (Cont.)

 

(iii) Impairment of financial assets (Cont.)

 

Trade receivables

 

The Company applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables.

 

To measure the expected credit losses, trade receivables assets have been grouped based on shared credit risk characteristics and the days past due.

 

(c) Liquidity risk

 

Liquidity risk arises from the possibility that the Company might encounter difficulty in settling its debts or otherwise meeting its obligations related to financial liabilities. The Company manages this risk through the following mechanisms:

 

preparing forward looking cash flow analyses in relation to its operating, investing and financing activities;
obtaining funding from a variety of sources;
maintaining a reputable credit profile;
managing credit risk related to financial assets;
investing cash and cash equivalents and deposits at call with major financial institutions; and
comparing the maturity profile of financial liabilities with the realization profile of financial assets.

 

(i) Maturities of financial liabilities

 

The tables below analyze the Company’s financial liabilities into relevant maturity groupings based on their contractual maturities. The amounts disclosed in the table are the contractual undiscounted cash flows.

 

Contractual maturities of 

Less than

6 months

  

6 – 12

months

   Between 1 and 2 years   Between 2 and 5 years  

Over 5

years

   Total contrac- tual cash flows   Carrying amount (assets)/ liabilities 
financial liabilities  A$   A$   A$   A$   A$   A$   A$ 
At June 30, 2024                                   
Trade and other payables   1,797,753    232,770    -    -    -    2,030,523    2,030,523 
Borrowings   643,546    -    -    -    -    643,546    643,546 
Lease liabilities   147,761    63,113    22,068    1,853    -    234,795    231,643 
Total   2,589,060    295,883    22,068    1,853    -    2,908,864    2,905,712 

 

Contractual maturities of 

Less than

6 months

  

6 – 12

months

   Between 1 and 2 years   Between 2 and 5 years  

Over 5

years

   Total contrac- tual cash flows   Carrying amount (assets)/ liabilities 
financial liabilities  A$   A$   A$   A$   A$   A$   A$ 
At June 30, 2023                                   
Trade and other payables   1,617,333    -    -    -    -    1,617,333    1,617,333 
Lease liabilities   158,316    161,154    208,957    21,636    1,817    551,880    532,846 
Total   1,775,649    161,154    208,957    21,636    1,817    2,169,213    2,150,179 

 

F-51

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (cont.)

 

32. FINANCIAL RISK MANAGEMENT (cont.)

 

(d) Interest rate risk

 

The Company’s main interest rate risk arises in relation to its short-term deposits with various financial institutions. If rates were to decrease, the Company may generate less interest revenue from such deposits. However, given the relatively short duration of such deposits, the associate risk is relatively minimal.

 

The Company has a Short-Term Investment Policy which was developed to manage the Company’s surplus cash and cash equivalents. In this context, the Company adopts a prudent approach that is tailored to cash forecasts rather than seeking high returns that may compromise access to funds as and when they are required. Under the policy, the Company deposits its surplus cash in a range of deposits / securities over different time frames and with different institutions in order to diversify its portfolio and minimize risk.

 

On a monthly basis, Management provides the Board with a detailed list of all cash and cash equivalents, showing the periods over which the cash has been deposited, the name and credit rating of the institution holding the deposit and the interest rate at which the funds have been deposited.

 

At June 30, 2024, if interest rates had changed by +/- 50 basis points from the year-end rates, with all other variables held constant, the Company’s loss for the year would have been A$420.74 lower / higher (2023: A$31,083 lower / higher), as a result of higher / lower interest income from cash and cash equivalents and deposits in place.

 

The exposure to interest rate risks and the effective interest rates of financial assets and liabilities, both recognized and unrealized, for the Company is as follows:

  

       Floating rate   Fixed rate   Carrying amount   Weighted average effective rate   Average maturity Period
   Year   A$   A$   A$   %   Days
Financial assets                            
Cash at bank / on hand   2024    84,148    936,460    1,020,608    3.51   At call
    2023    1,516,646    6,334,551    7,851,197    4.46   At call
Bonds / deposits   2024    -    18,790    18,790    -   At call
    2023    -    17,440    17,440    -   At call
Totals   2024    1,516,646    6,351,991    7,868,637         
    2023    1,516,646    6,351,991    7,868,637         
Financial liabilities                            
Borrowings   2024    -    643,546    643,546    16%  287 days
    2023    -    -    -    -   -
Leases   2024    -    231,643    231,643    4.77%  -
    2023    -    532,846    532,846    4.77%  -
Totals   2024    -    875,189    875,189         
    2023    -    532,846    532,846         

 

F-52

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (cont.)

 

33. CAPITAL MANAGEMENT

 

(a) Risk management

 

The Company’s objectives when managing capital are to:

 

  safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and
  maintain an optimal capital structure to reduce the cost of capital.

 

In order to maintain or adjust the capital structure, the Company may issue new shares or reduce its capital, subject to the provisions of the Company’s constitution. The capital structure of the Company consists of equity attributed to equity holders of the Company, comprising contributed equity, reserves and accumulated losses. By monitoring undiscounted cash flow forecasts and actual cash flows provided to the board by the Company’s management, the board monitors the need to raise additional equity from the equity markets.

 

(b) Dividends

 

No dividends were declared or paid to members for the year ended June 30, 2024 (2023: nil). The Company’s franking account balance was nil at June 30, 2024 (2023: nil).

 

34. PARENT ENTITY FINANCIAL INFORMATION 

 

The individual financial statements for the parent entity show the following aggregate amounts:

 

  

2024

A$

  

2023

A$

  

2022

A$

 
Statement of Financial Position               
Current assets   3,174,983    10,035,224    5,022,689 
Non-current assets   2,418,089    4,237,344    5,815,118 
Total assets   5,593,072    14,272,568    10,837,807 
Current liabilities   3,681,776    2,841,919    2,270,626 
Non-current liabilities   137,719    314,999    589,745 
Total liabilities   3,819,495    3,156,918    2,860,371 
                
Shareholders’ equity               
Share Capital   163,817,863    161,342,707    155,138,636 
Other reserves   (117,131)   (117,131)   (117,131)
Share-based payment   1,742,809    3,917,101    8,937,157 
Accumulated losses   (163,669,964)   (154,027,027)   (155,981,226)
                
Total Equity   1,773,577    11,115,650    7,977,436 
                
Loss for the year   (12,043,440)   (3,697,316)   (8,833,064)

 

F-53

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (cont.)

 

35. CONTINGENT LIABILITIES AND CONTINGENT ASSETS

 

The Company is not aware of any contingent liabilities as at June 30, 2024 (2023: There were no contingent liabilities or assets).

 

36. SUBSEQUENT EVENTS

 

On July 16, 2024 the Company announced the appointment of Mark Ziirsen as Chief Financial Officer and Company Secretary.

 

On July 26, 2024 the Company announced that it had conducted an operations review following which it intends to transition to a capital light operations model – which is anticipated to result in an immediate material reduction in operating costs. The capital light operations model will focus on sales growth (particularly in the Company’s largest market in the United States) and move the Company’s operations to a more efficient outsourced / collaborations approach (rather than its current, more expensive in house laboratory operations). As a result of this change, current CEO, Simon Morriss will transition out of the organisation in September. The announcement also detailed two capital management initiatives:

 

  (i) The Company has received commitments for a short-term loan of A$800,000 from lenders including directors, secured partly on the anticipated balance of R&D refund due late September,. Funds from the loans will be used for working capital and for the initial costs (including redundancies) of the transition to a capital light operations model.
     
  (ii) The Company also launching a 2 for 3 non-renounceable entitlement issue at 4 cents with an attaching 1:1 free option (with an exercise price of 4 cents) to raise a minimum of $2 million and up to a maximum of $3.85 million (upon placement of entitlements and any shortfall). The Entitlement Offer does not require shareholder approval and is to be made to “eligible shareholders”. The Company will have 3 months post lodgment of the entitlement prospectus with ASIC and ASX to place any shortfall. The board and others have made commitments effectively to underwrite the first $500,000 of the entitlement offer (based on a minimum of $2 million being raised) and would apply part of their loans (referred to above) to this underwriting.

 

On August 23, 2024, the company received notification from The   Nasdaq Stock Market LLC that it is not in compliance with the minimum bid price requirement of Nasdaq Listing Rule 5550(a)(2) for continued listing on the Nasdaq Capital Market, since the closing bid price for the company’s American Depositary Shares (ADS) on the Nasdaq Capital Market was below US$1.00 for 30 consecutive trading days. Under Nasdaq Listing Rule 5810(c)(3)(A), the company has a period of 180 calendar days from the date of Notification to regain compliance with the minimum bid requirement, during which time the ADS will continue to trade on the Nasdaq Capital Market. If at any time before February 19, 2025, the bid price of the ADS closes at or above US$1.00 per ADS for a minimum of 10 consecutive business days, the Company will regain compliance with the Minimum Bid Requirement.

 

On September 11, 2024 the Company announced that it had closed its pro-rata Entitlement Offer on September 9, 2024 raising $324,648 from Eligible Shareholders. This represents a shortfall amount of $3,553,145. In addition, to the pre-commitments of $500,000 from Directors and others, the Company has also received Shortfall Commitments after the close of the retail offer under the Entitlement Offer. In aggregate approximately $1 million in commitments has been received from these three components. Accordingly, the Company has extended the period under the Entitlement Offer Prospectus to receive Shortfall Commitments (as permitted under section 724 of the Corporations Act and the Entitlement Offer Prospectus) and are actively working with brokers and others to place the remaining shortfall.

 

F-54

 

 

CONSOLIDATED ENTITY DISCLOSURE STATEMENT

 

Basis of Preparation

 

This Consolidated Entity Disclosure Statement (CEDS) has been prepared in accordance with the Corporations Act 2001. It includes information for each entity that was part of the consolidated entity at the end of the financial year in accordance with IFRS 10 Consolidated Financial Statements.

 

Entity name   Entity type   Trustee, partner or JV participant   % of share capital     Place of incorporation   Australian or foreign resident   Jurisdiction of foreign resident
Genetic Technologies Corporation Pty Ltd   Body corporate   -   100 %   Australia   Australia   n/a
Genetype Pty Ltd   Body corporate   -   100 %   Australia   Australia   n/a
Gene Ventures Pty Ltd   Body corporate   -   100 %   Australia   Australia   n/a
Genetype Corporation   Body corporate   -   100 %   USA   Foreign   USA
Genetype, Inc   Body corporate   -   100 %   USA   Foreign   USA
Genetype UK Limited   Body corporate   -   100 %   United Kingdom   Foreign   United Kingdom
Helix Genetics Limited   Body corporate   -   100 %   Malta   Foreign   Malta
Genetic Technologies HK Limited   Body corporate   -   100 %   Hong Kong, SAR   Foreign   Hong Kong, SAR
Hainan Aocheng Gene Technology Co., Ltd   Body corporate   -   100 %   China   Foreign   China

 

Australian Disclosure Requirements

 

All press releases, financial reports and other information are available using the stock code GTG on the Australian Securities Exchange website: www2.asx.com.au

 

F-55