ATHE 6-K
Alterity Therapeutics Ltd (ATHE)
SECURITIESAND EXCHANGE COMMISSION
Washington,D.C. 20549
FORM6-K
REPORTOF FOREIGN PRIVATE ISSUER
PURSUANTTO RULE 13a-16 OR 15d-163
UNDERTHE SECURITIES EXCHANGE ACT OF 1934
Forthe month of August 2024
AlterityTherapeutics Limited
(Name of Registrant)
Level 14, 350 Collins Street,Melbourne, Victoria 3000 Australia
(Address of Principal Executive Office)
Indicateby check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
ThisForm 6-K is being incorporated by reference into our Registration Statement on Form S-8 (Files No. 333-251073, 333-248980and 333-228671) and ourRegistration Statements on Form F-3 (Files No. 333-274816, 333-251647, 333-231417and 333-250076)
ALTERITYTHERAPEUTICS LIMITED
(adevelopment stage enterprise)
The following exhibits are submitted:
| 99.1 | Appendix 4E Preliminary Final Report - ATH |
|---|
1
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Alterity Therapeutics Limited | |
|---|---|
| By: | /s/ Geoffrey P. Kempler |
| Geoffrey P. Kempler | |
| Chairman |
Date: August 29, 2024
2
Exhibit 99.1
Alterity Therapeutics Limited
ACN 080 699 065
Preliminary Final Report - 30 June 2024
2
Alterity Therapeutics Limited
Appendix 4E - Preliminary Final Report
For the year ended 30 June 2024
| Name of entity | Alterity Therapeutics Limited |
|---|---|
| ABN or equivalent company reference | 37 080 699 065 |
| Current reporting period | 30 June 2024 |
| Corresponding reporting period | 30 June 2023 |
Results for announcement to the market
| Revenue for ordinary activities | Up | 1,533.1 | % | to | |
| Net loss after tax (from ordinary activities) for the year attributable to members | Up | 38.5 | % | to | |
| Net loss after tax for the year attributable to members | Up | 38.5 | % | to |
All values are in US Dollars.
Net tangible assets per share
| 30 June<br><br> 2024 | 30 June<br><br> 2023 | |||
|---|---|---|---|---|
| Net tangible asset backing per share (cents) | 0.27 | 0.94 |
Dividends
No dividends have been paid during the financial year (2023: nil). The Directors do not recommend the payment of a dividend in respect of the current financial year (2023: nil).
Principal activities
The Group’s principal activities during the course of the year were to develop disease modifying treatments for neurodegenerative disease. There have been no significant changes in the nature of those principal activities during the financial year.
Explanation of results
Alterity Therapeutics Limited recorded revenue of $268,419 for the year ended 30 June 2024 (2023: $16,436), which is interest received on the Group’s bank accounts. Alterity Therapeutics Limited has incurred a loss for the year of $19,123,464 (2023: $13,806,515).
As at 30 June 2024 the company’s cash position was $12,638,885 (30 June 2023: $15,773,783).
The preliminary report follows, with the further details to be included in the audited financial statements to be released by 30 September 2024.
Changes in controlled entities
N/A
Other information required by Listing Rule 4.3A
N/A
Corporate structure
Alterity Therapeutics Limited is a company limited by shares that was incorporated in and is domiciled in Australia. Alterity Therapeutics Limited has 2 wholly owned subsidiaries:
| ● | Alterity Therapeutics Inc., a company limited by shares that was incorporated in and is domiciled in the United States; and |
|---|---|
| ● | Alterity Therapeutics UK Limited, a company limited by shares that was incorporated in and is domiciled in the United Kingdom. |
Audit
The financial statements are currently in the process of being audited. The audited financial statements along with the independent auditor report for the year end 30 June 2024 will be provided in due course.
This report is based on accounts which are in the process of being audited. The 30 June 2024 financial report, when audited, is likely to contain an independent auditor’s report which includes a material uncertainty that may cast significant doubt about the Company’s ability to continue as a going concern. Additional disclosure has been included in Note 7 to the financial statements.
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Alterity Therapeutics Limited
Consolidated statement of profit orloss and other comprehensive income
For the year ended 30 June 2024
| Notes | 2024 | 2023 | |||
|---|---|---|---|---|---|
| Interest income | 1 | ||||
| Other income | 1 | ||||
| Expenses | |||||
| Intellectual property expenses | ) | ) | |||
| General and administration expenses | 2 | ) | ) | ||
| Research and development expenses | 2 | ) | ) | ||
| Other operating expenses | ) | ) | |||
| Other gains/(losses) | 2 | ||||
| Loss before income tax | ) | ) | |||
| Income tax expense | ) | ) | |||
| Loss for the year | ) | ) | |||
| Other comprehensive income | |||||
| Other comprehensive income for the year, net of tax | |||||
| Total comprehensive loss for the year | ) | ) |
All values are in US Dollars.
| Cents | Cents | |
|---|---|---|
| Loss per share for profit attributable to the ordinary equity holders of the company: | ||
| Diluted loss per share | 0.52 | 0.57 |
4
Alterity Therapeutics Limited
Consolidated statement of financialposition
As at 30 June 2024
| Notes | 30 June <br>2024 | 30 June 2023 | |||
|---|---|---|---|---|---|
| ASSETS | |||||
| Current assets | |||||
| Cash and cash equivalents | |||||
| Trade and other receivables | 3(a) | ||||
| Other current assets | 4(a) | ||||
| Total current assets | |||||
| Non-current assets | |||||
| Property, plant and equipment | |||||
| Right-of-use assets | |||||
| Total non-current assets | |||||
| Total assets | |||||
| LIABILITIES | |||||
| Current liabilities | |||||
| Trade and other payables | 3(c) | ||||
| Provisions | 4(b) | ||||
| Other current liabilities | |||||
| Lease liabilities | |||||
| Current tax liabilities | |||||
| Total current liabilities | |||||
| Non-current liabilities | |||||
| Provisions | |||||
| Lease liabilities | |||||
| Total non-current liabilities | |||||
| Total liabilities | |||||
| Net assets | |||||
| EQUITY | |||||
| Contributed equity | 5(a) | ||||
| Reserves | 5(c) | ||||
| Accumulated losses | 5(b) | ) | ) | ||
| Total equity |
All values are in US Dollars.
5
Alterity Therapeutics Limited
Consolidatedstatement of changes in equity
For the year ended 30 June 2024
| Attributable to owners of<br> Alterity Therapeutics Limited | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Notes | Contributed equity | Reserves | Accumulated losses | Total equity | |||||
| Balance at 1 July 2022 | ) | ||||||||
| Loss for the year | ) | ) | |||||||
| Total comprehensive loss for the year | ) | ) | |||||||
| Transactions with owners in their capacity as owners: | |||||||||
| Issue of ordinary shares | |||||||||
| Issue of options | |||||||||
| Transaction costs | ) | ) | |||||||
| Expired options | ) | ||||||||
| Forfeited options | ) | ) | |||||||
| Balance at 30 June 2023 | ) | ||||||||
| Balance at 1 July 2023 | ) | ||||||||
| Loss for the year | ) | ) | |||||||
| Total comprehensive loss for the year | ) | ) | |||||||
| Transactions with owners in their capacity as owners: | |||||||||
| Issue of ordinary shares | |||||||||
| Equity to be issued | 5(a) | ||||||||
| Issue of options | |||||||||
| Transaction costs | ) | ) | |||||||
| Forfeited options | ) | ||||||||
| Balance at 30 June 2024 | ) |
All values are in US Dollars.
6
Alterity TherapeuticsLimited
Consolidated statement of cash flows
For the year ended 30 June 2024
| 2024 | 2023 | |||
|---|---|---|---|---|
| Cash flows from operating activities | ||||
| Payments to suppliers and employees | ) | ) | ||
| Interest received | ||||
| R&D tax incentive refund | ||||
| Interest paid | ) | ) | ||
| Income taxes paid | ) | ) | ||
| Net cash inflow (outflow) from operating activities | ) | ) | ||
| Cash flows from investing activities | ||||
| Payments for rental security deposits | ) | |||
| Payments for property, plant and equipment | ) | ) | ||
| Net cash inflow (outflow) from investing activities | ) | ) | ||
| Cash flows from financing activities | ||||
| Proceeds from issue of shares and other equity securities | ||||
| Transaction costs relating to issue of equity | ) | ) | ||
| Principle elements of lease payments | ) | ) | ||
| Net cash inflow (outflow) from financing activities | ||||
| Net increase (decrease) in cash and cash equivalents | ) | ) | ||
| Cash and cash equivalents at the beginning of the financial year | ||||
| Effects of exchange rate changes on cash and cash equivalents | ||||
| Cash and cash equivalents at end of year |
All values are in US Dollars.
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Alterity TherapeuticsLimited
Notes to the financial statements
30 June 2024
| 1 | Interest and other income | |
|---|---|---|
| 2024 | 2023 | |
| --- | --- | --- |
| Interest income | ||
| R&D tax incentive (1) | ||
| Miscellaneous income | ||
All values are in US Dollars.
| (1) | A<br>43.5% R&D Tax incentive refundable tax offset, will be available to eligible small companies with an annual aggregate turnover of<br>less than $20 million. For the years ended June 30, 2024, June 30, 2023, the Group is eligible to receive the refundable tax offset,<br>the management with input from an independent expert, has applied judgement when assessing activities and expenditures that are likely<br>to be eligible under the incentive scheme and therefore recorded $4,019,285 and $3,914,230 in other income, respectively. | |||
|---|---|---|---|---|
| 2 | Loss for the year | |||
| --- | --- | |||
| 2024 | 2023 | |||
| --- | --- | --- | --- | --- |
| Loss before income tax has been determined after: | ||||
| General and administration expenses | ||||
| Depreciation on fixed assets | ||||
| Depreciation on leased assets | ||||
| Employee expenses (non R&D related) | ||||
| Consultant and director expenses | ||||
| Audit, internal control and other assurance expenses | ||||
| Corporate compliance expenses | ||||
| Insurance expenses | ||||
| Other administrative and office expenses | ||||
| Share-based payment expenses | ||||
| Corporate advisory | ||||
| Research and development expenses ^1^ | ||||
| Employee expenses | ||||
| Other research and development expenses | ||||
| Other operating expenses | ||||
| Foreign exchange (gain)/loss | ) | ) | ||
| ) | ) |
All values are in US Dollars.
| ^1^ | Research and development expenses mainly consist of expenses<br>paid for contracted research and development activities conducted by third parties on behalf of the Group. |
|---|
8
Alterity TherapeuticsLimited
Notes to the financial statements
30 June 2024
(continued)
| 3 | Financial assets and financial liabilities | |||||
|---|---|---|---|---|---|---|
| (a) | Trade and other receivables | |||||
| --- | --- | |||||
| 30 June 2024 | 30 June 2023 | |||||
| --- | --- | --- | --- | --- | --- | --- |
| Current | Non- <br>current | Total | Current | Non- <br>current | Total | |
| R&D tax incentive receivable | ||||||
| Accrued interest income | ||||||
| Goods and services tax receivable | ||||||
| Other receivable | ||||||
All values are in US Dollars.
R&D tax incentive receivable represents the amount of R&D tax incentive the Group expects to recover. For further details, see note 1.
| (i) | Fair value of trade andother receivables |
|---|
Due to the short-term nature of the current receivables, their carrying amount is considered to be the same as their fair value.
| (b) | Cash and cash equivalents | |
|---|---|---|
| 30 June<br> 2024 | 30 June 2023 | |
| --- | --- | --- |
| Cash at bank and in hand | ||
| Deposits at call | ||
All values are in US Dollars.
| (i) | Classification as cash equivalents |
|---|
Term deposits are presented as cash equivalents if they have a maturity of three months or less from the date of acquisition and are repayable with 24 hours’ notice with no loss of interest.
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Alterity TherapeuticsLimited
Notes to the financial statements
30 June 2024
(continued)
| 3 | Financial assets and financial liabilities (continued) | ||||||
|---|---|---|---|---|---|---|---|
| (c) | Trade and other payables | ||||||
| --- | --- | ||||||
| 30 June 2024 | 30 June 2023 | ||||||
| --- | --- | --- | --- | --- | --- | --- | --- |
| Notes | Current | Non-<br> current | Total | Current | Non- <br>current | Total | |
| Trade payables | |||||||
| Accrued research and development expenses | |||||||
| Accrued personnel fees | |||||||
| Accrued professional fees | |||||||
| Other accrued expenses | |||||||
| Other<br> payables | |||||||
All values are in US Dollars.
Trade payables are unsecured and are usually paid within 30 days of recognition.
| 4 | Non-financial assets and liabilities |
|---|
This note provides information about the group’s non-financial assets and liabilities, including:
| (a) | Other current assets | |
|---|---|---|
| 30 June<br> 2024 | 30 June <br>2023 | |
| --- | --- | --- |
| Prepayments | ||
| Others | ||
All values are in US Dollars.
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Alterity TherapeuticsLimited
Notes to the financial statements
30 June 2024
(continued)
| 4 | Non-financial assets and liabilities (continued) | |||||
|---|---|---|---|---|---|---|
| (b) | Provisions | |||||
| --- | --- | |||||
| 30 June 2024 | 30 June 2023 | |||||
| --- | --- | --- | --- | --- | --- | --- |
| Current | Non- <br>current | Total | Current | Non-<br> current | Total | |
| Annual leave | ||||||
| Long service leave | ||||||
All values are in US Dollars.
A provision has been recognised for employee entitlements relating to long service leave. In calculating the present value of future cash flows in respect of long service leave, the probability of long service leave being taken is based on historical data.
| (i) | Amounts not expected tobe settled within the next 12 months |
|---|
The current provision for long service leave includes all unconditional entitlements where employees have completed the required period of service and also those where employees are entitled to pro-rata payments in certain circumstances. Majority of the balance is presented as current, since the Group does not have an unconditional right to defer settlement. However, based on past experience, the Group does not expect all employees to take the full amount of accrued long service leave or require payment within the next 12 months.
| (ii) | Movements in provisions | |||||
|---|---|---|---|---|---|---|
| 30 June<br><br> 2024 | 30 June<br><br> 2023 | |||||
| --- | --- | --- | --- | --- | --- | --- |
| Annual Leave | ||||||
| Carrying amount at start of year | 420,380 | 371,877 | ||||
| Charged/ (credited) to profit or loss – additional provisions recognised | 179,923 | 272,502 | ||||
| Amounts used during the year | (280,618 | ) | (232,747 | ) | ||
| Change in foreign exchange | (991 | ) | 8,748 | |||
| Carrying amount at end of year | 318,694 | 420,380 | ||||
| 30 June<br><br> 2024 | 30 June<br><br> 2023 | |||||
| --- | --- | --- | --- | --- | --- | |
| Long service leave | ||||||
| Carrying amount at start of year | 328,325 | 298,143 | ||||
| Charged/ (credited) to profit or loss – additional provisions recognised | 30,308 | 30,182 | ||||
| Amounts used during the year | (146,628 | ) | - | |||
| Carrying amount at end of year | 212,005 | 328,325 | ||||
| Total | 530,699 | 748,705 |
11
Alterity TherapeuticsLimited
Notes to the financial statements
30 June 2024
(continued)
| 5 | Equity | ||||||
|---|---|---|---|---|---|---|---|
| (a) | Contributed equity | ||||||
| --- | --- | ||||||
| Notes | 30 June<br><br> 2024 | 30 June <br><br>2023 | 30 June <br>2024 | 30 June<br> 2023 | |||
| --- | --- | --- | --- | --- | --- | --- | --- |
| Shares | Shares | ||||||
| Ordinary shares - fully paid | 5,245,115,318 | 2,439,897,618 |
All values are in US Dollars.
| (i) | Movements in ordinary shares: | ||
|---|---|---|---|
| Details | Total | ||
| --- | --- | --- | --- |
| Balance at 1 July 2023 | 2,439,897,618 | ||
| Issue at 0.0035 (2023-11-29) | 362,462,762 | ||
| Issue at 0.0035 (2024-01-08) | 1,008,965,805 | ||
| Issue at 0.0035 (2024-02-02) | 571,428,556 | ||
| Issue at 0.0038 (2024-03-04) | 855,263,158 | ||
| Issue at 0.0070 (2024-04-22) | 7,097,419 | ||
| Security issuance costs | - | ) | |
| Balance at 30 June 2024 | 5,245,115,318 |
All values are in US Dollars.
| (ii) | Ordinary shares |
|---|
Ordinary shares have no par value and the Group does not have a limited amount of authorised capital. On a show of hands every holder of ordinary shares present at a meeting in person or by proxy, is entitled to one vote, and upon a poll, each share is entitled to one vote.
| (b) | Accumulated losses |
|---|
Movements in accumulated losses were as follows:
| 30 June <br><br>2024 | 30 June<br><br> 2023 | ||||||
|---|---|---|---|---|---|---|---|
| Balance at the beginning of the year | 195,130,889 | 181,884,388 | |||||
| Net loss for the period | (19,123,464 | ) | (13,806,515 | ) | |||
| Reclassify expired options from reserves | - | (560,014 | ) | ||||
| Reclassify forfeited options from reserves | (93,222 | ) | - | ||||
| Balance at the end of the year | 214,161,131 | 195,130,889 | |||||
| (c) | Reserves | ||||||
| --- | --- | ||||||
| Share based payment reserve | Notes | 30 June<br><br> 2024 | 30 June<br><br> 2023 | 30 June<br> 2024 | 30 June<br> 2023 | ||
| --- | --- | --- | --- | --- | --- | --- | --- |
| Options | Options | ||||||
| Options over fully paid ordinary shares | 5(c)(i) | 3,250,009,092 | 170,042,720 | ||||
| 3,250,009,092 | 170,042,720 |
All values are in US Dollars.
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Alterity TherapeuticsLimited
Notes to the financial statements
30 June 2024
(continued)
| 5 | Equity (continued) |
|---|---|
| (c) | Reserves (continued) |
| --- | --- |
| (i) | Options over fully paidordinary shares |
| --- | --- |
The tables below presents the number of options issued, lapsed or expired during the year ended 30 June 2024.
| Details | Amount | ||||
|---|---|---|---|---|---|
| 11- Sep-2023 | Unlisted options forfeited | (500,000 | ) | ) | |
| 01-Dec-2023 | Unlisted options issued under ESOP at 0.0105 | 8,000,000 | |||
| 08-Jan 2024 | Unlisted options issued at 0.0100 | 457,142,830 | |||
| 08-Jan 2024 | Issue of free-attaching options at 0.0070 | 1,371,428,567 | |||
| 02-Feb-2024 | Issue of free-attaching options at 0.0020 | 190,476,123 | |||
| 02-Feb-2024 | Issue of free-attaching options at 0.0070 | 571,428,556 | |||
| 05-Apr-2024 | Issue of free-attaching options at 0.0070 | 285,087,715 | |||
| 22-Apr-2024 | Exercise of options | (7,097,419 | ) | ||
| 21-May-2024 | Unlisted options forfeited | (5,000,000 | ) | ) | |
| 27-Jun-2024 | Unlisted options issued under ESOP at 0.0040 | 26,500,000 | |||
| 27-Jun-2024 | Unlisted options issued under ESOP at US0.0031 | 62,500,000 | |||
| 27-Jun-2024 | Unlisted options issued under ESOP at US0.0030 | 120,000,000 | |||
| 30-Jun-2024 | Share-based payment expenses | - | |||
| 3,079,966,372 |
All values are in US Dollars.
There was no further movement during the year ended 30 June 2024.
| (iii) | Nature and purpose of reserves |
|---|
The share based payments reserve is used to recognise the fair value of options and warrants issued to directors, employees and consultants but not exercised.
13
Alterity TherapeuticsLimited
Notes to the financial statements
30 June 2024
(continued)
| 6 | Events occurring after the reporting period |
|---|
On 17 July 2024 Alterity Therapeutics announced positive interim data from the ATH434-202 phase 2 clinical trial. The interim analysis included clinical and biomarker data on participants treated with ATH434, as well as neuroimaging data.
As announced on 18 July 2024, the Group issued 75,220,800 shares at $0.0054 per share through the use of its “at market” (ATM) facility amounting to $406,192. This will fund working capital and progress its research and development activities.
No other matter or circumstance has occurred subsequent to year end that has significantly affected, or may significantly affect, the operations of the Group, the results of those operations or the state of affairs of the Group or economic entity in subsequent financial years.
| 7 | Significant estimates and assumptions |
|---|
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that may have a financial impact on the entity and that are believed to be reasonable under the circumstances.
The Company and its two wholly-owned subsidiaries (the “Group”) makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial period are discussed below.
The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period.
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Alterity TherapeuticsLimited
Notes to the financial statements
30 June 2024
(continued)
| 7 | Significant estimates and assumptions (continued) |
|---|---|
| (a) | Going Concern |
| --- | --- |
The Group expects to continue incurring losses into the foreseeable future and will need to raise additional capital to continue the long-term development of its planned research and development programs. Cash and cash equivalents on hand as at 30 June 2024 was $12,638,885. The Group intends to raise additional equity funding within the next year to enable further progression of its planned research and development programs, however there is uncertainty associated with its ability to successfully raise such funds in the time and amounts needed to meet its requirements.
The inability to obtain funding as and when needed would have a negative impact on the Group’s financial condition and ability to pursue its business strategies. If the Group is unable to obtain the required funding to operate and to develop and commercialise its product candidates, it could be forced to delay, reduce or eliminate some or all of its research and development programs, which would adversely affect its business prospects.
As a result, there is a material uncertainty that may cast significant doubt on the Group’s ability to continue as a going concern and that it may be unable to realise its assets and liabilities in the normal course of business. However, the directors believe that it will be successful in the above matters and accordingly have prepared the financial report on a going concern basis.
Our consolidated financial statements have been prepared assuming that the Group will continue as a going concern, which contemplates the realisation of assets and the satisfaction of its liabilities in the normal course of business.
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