RNS Number:0345U
Norwood Immunology Ld
30 March 2007
FOR IMMEDIATE RELEASE 30 MARCH 2006
NORWOOD IMMUNOLOGY LIMITED
INTERIM RESULTS FOR THE HALF YEAR
TO 31 DECEMBER 2006
Norwood Immunology Limited ('Norwood Immunology' or 'the Group) (AIM:NIM), the
group focused on the rejuvenation of the immune system and the development of
virosomal vaccines, today announces its interim consolidated results for the
half year ended 31 December 2006.
Financial Highlights
* The consolidated loss after tax for the 6 months ended 31 December 2006
was A$1,802,973 (2005: A$3,762,697), approximately #0.7 million (2005: #1.6
million).
* Cash at 31 December 2006 was A$9,856,883 (2005: A$3,612,731),
approximately #4.0 million (2005: #1.5 million).
* Basic loss per share of -A$ 0.013 (2005: -A$0.030), approximately
-#0.005 (2005: -#0.013).
* In accordance with permissible accounting standards for AIM, as set out
in AIM Notice 22, the Group has adopted Australian IFRS for ongoing
financial information with effect from the year ended 30 June 2006; this
includes restated prior year comparatives for the 6 months to December 2005.
All amounts expressed in pounds sterling have been converted, on a proforma
basis at the 31 December 2006 rate of A$1:#0.4031 (2005 A$1:#0.4244).
In September 2006, the Group entered into a secured facility agreement with
Indus Opportunity Master Fund, Ltd ('Indus') for A$1 million (the "Loan") to
fund the Group whilst the new capital raising was completed. On 27 October 2006
the facility was extended to up to A$2 million with repayment by no later than
30 June 2008. At the time the facility was extended, Indus was also granted the
option to convert any or all of the outstanding balance in ordinary shares at an
issue price of #0.12 per share. A$1,520,000 was drawn down against that facility
as at 31 December 2006.
On 27 November 2006 the Group completed a #6.6m fundraising (approximately #6.2m
net of expenses) with the issue and placement of 55,000,000 ordinary shares in
Norwood Immunology.
Corporate Development
On 27 November 2006 the Group completed its acquisition of all of the issued
shares of Bestewil Holding B.V. ("Bestewil") and its 100% subsidiary Virosome
Biologicals B.V. ("Virosome Biologicals") ("Acquisition"). The consideration for
the Acquisition, comprised 48,014,489 ordinary shares in Norwood Immunology
("Acquisition Shares") as part consideration and cash of Euro3.5 million (Euro3
million of which was paid on completion and Euro0.5 million being deferred until 27
May 2008, with rolled up interest payable on the deferred amount at 6% per
annum).
Virosome Biologicals is developing and commercialising a proprietary platform
technology for vaccines. The technology and associated intellectual property is
based upon the combination of an adjuvant with virosomes to achieve an enhanced
immune response to an antigen challenge, and an enhanced process for their
manufacture..
Virosome Biologicals' adjuvanted virosome technology has its first out- license
in the field of intranasal influenza vaccines with Solvay Pharmaceuticals B.V.
("Solvay"), with milestones and royalties payable to Virosome Biologicals as the
clinical development and commercialisation programme progresses. Solvay is
responsible for clinical trials and development and commercialising of the
vaccine and has announced that it will be undertaking a Phase II trial in
intranasal influenza, having successfully completed a phase I trial in May 2006.
In addition to vaccine applications, Virosome Biologicals has demonstrated in a
pre-clinical model the use of virosomes for efficient and efficacious delivery
of siRNA, a technology over which it holds patent protection RNAi represents a
novel approach to "silence" disease relevant genes and could generate a
completely new class of therapeutic products. One of the main barriers to the
clinical development of RNAi is the ability to deliver RNAi molecules to the
relevant target in the body. Accordingly, Virosome Biologicals is exploring
partnerships with companies in the RNAi field to seek commercial opportunities
for their delivery technology.
The enlarged group now has research capabilities in Europe and Australia, a
joint intellectual property portfolio and a combined suite of clinical trials,
three currently in Phase II, all of which provides the potential for a range of
commercial development and out-licensing opportunities within the field of
immunology, vaccines and RNAi delivery.
Richard Williams, CEO of Norwood Immunology commented: 'The last 6 months have
been an important period as the Group completed both fundraising activities and
the acquisition of Bestewil, whilst continuing to progress the core immunology
clinical trials. The virosome technologies in Bestewil represent an exciting
opportunity which could be applicable to a wide range of vaccine applications as
well as providing an entree into the exciting RNAi field.'
For further information contact:
Richard Williams, Chief Executive Officer, Norwood Immunology Limited
www.norwoodimmunology.com
+44 (0)7860 295153
Lisa Baderoon, Mark Court, Mary-Jane Johnson, Buchanan Communications
+44 (0)207 466 5000
Capel Irwin, Megan Macintyre, Nicholas Marren, KBC Peel Hunt Ltd
+44 (0) 207 418 8900
CHAIRMAN'S HALF YEAR STATEMENT
It is with great pleasure that we present Norwood Immunology's interim results
for the 6 months ended 31 December 2006.
Background
Following the completion of our recent acquisition of Bestewil, Norwood
Immunology has two 2 synergistic platform technologies designed to boost the
immune system and enhance the efficacy of vaccines; which it is pursuing in
research programs, clinical trials and commercial partnerships.
The immunology technology is focused on creating, manipulating and activating
the immune system. It is developing and commercialising its technologies, which
aim to rejuvenate and enhance the immune system through the re-growth of the
thymus, improvements in bone marrow function and enhancement of T cell
functionality.
Norwood Immunology has identified a number of clinical contexts in which
rejuvenating the thymus and the immune system could confer significant clinical
benefits on patients, using a class of drugs already in wide clinical use today
(GnRH analogues - principally used in the treatment of prostate cancer and
endometriosis). These include oncology, therapeutic vaccines and achieving
tolerance of transplanted organs or stem cells; with longer-term plans for viral
diseases, autoimmune diseases and HIV/AIDS.
The virosome technology is a proprietary platform technology, principally for
vaccines. Virosomal vaccines are already on the market, but Virosome
Biologicals' technology produces vaccines with significantly greater efficacy,
that are better targeted to the relevant part of the immune system through the
incorporation of an adjuvant into the virosome. The technology is based on
intellectual property relating to a new method of making virosomes as well as
the combination of an adjuvant (immune response stimulator) in the membrane of
the virosome that targets them specifically to antigen presenting cells or B
cells.
The Group believes that this technology will result in a significantly enhanced
immune response to an antigen challenge which may, therefore, offer greatly
improved efficiency in comparison with other existing virosome technologies that
are in the market.
In addition, Virosome Biologicals has developed expertise in RNA interference
(RNAi). RNAi represents a novel approach to "silence" disease relevant genes and
could generate a completely new class of therapeutic products. One of the main
barriers to the clinical development of RNAi is the ability to deliver RNAi
molecules to the relevant target in the body. Virosome Biologicals has
demonstrated in pre-clinical research the use of virosomes for efficient and
efficacious delivery of siRNA and holds a patent on siRNA delivery via
virosomes.
Commercial Development
Norwood Immunology has a strong development pipeline including 3 clinical trials
in Phase II, with one Phase II pilot clinical study already completed in
Melbourne. It already has in place an outlicensing deal for each of its core
technology platforms: firstly, for immune system rejuvenation with TAP
Pharmaceutical Products, Inc. the US market leader in GnRH; and, in respect of
Virosome Biologicals a license with Solvay Pharmaceuticals B.V. ("Solvay") to
use the virosome adjuvant technology in an intranasal flu vaccine.
* In November 2005, the Group commenced its Phase II clinical trial in
collaboration with The University of Texas M D Anderson Cancer Center, of
Houston, to determine whether an enhanced vaccine response can be achieved
by using the Group's therapy to increase thymic activity and the output and
function of T-cells via sex steroid suppression using the GnRH Lupron Depot
(R). This study is differentiated from the bone marrow transplant ("BMT")
work discussed below, in that the aim is to modify the course of cancer
using a specific vaccine as opposed to looking at general immune system
status.
The trial involves Lupron Depot(R) being administered as an adjunctive
immunology therapy with an experimental melanoma vaccine, to determine whether
an enhanced immune response to that vaccine can be created. It is expected to
involve up to 100 patients (50 treated; 50 control). Recruitment is progressing
and interim results are expected in 2008.
* In February 2006, Norwood announced the commencement of the Phase II
clinical trial in cancer patients undergoing autologous (self-derived) BMT
in the USA. The trial comprises an 80 patient double-blind randomized Phase
II clinical trial (40 treated; 40 control) at the University of Texas M D
Anderson Cancer Center, the Dana-Farber Cancer Institute, Harvard Medical
School, and University of Minnesota Medical Center. The trial is a
collaborative effort with a consortium of leading cancer clinicians and
institutes, co-funded by the National Cancer Institute and the National
Institute of Allergy and Infectious Diseases.
The trial is being conducted in patients receiving high dose myeloablative
chemotherapy therapy and autologous haemopoietic stem cell (HSC) transplants
(HSCT), more commonly referred to as BMT, for the treatment of Hodgkin's
disease, non-Hodgkin's lymphoma or multiple myeloma. The aim is to determine
whether there is enhanced immune recovery as a result of using Norwood
Immunology's technology, Recruitment is progressing slower than anticipated and
accordingly, in conjunction with our trial partners, we are actively increasing
the trial centres so as to speed the recruitment process.
* In December 2005, the Group commenced a preclinical trial at
Massachusetts General Hospital (MGH), in Boston USA, to examine whether the
thymus, having been reactivated by Lupron, can create a new immune system
that is tolerant to donated organ and tissue transplants (in this case, a
kidney), removing the need for prolonged immuno-suppressants. The
preclinical trial is progressing with first aim results expected to complete
this calendar year.
Virosome Biologicals' adjuvanted virosome technology is licensed to Solvay
specifically in the field of intranasal influenza vaccines, with milestones and
royalties payable to Virosome Biologicals as the clinical development and
commercialisation programme progresses. Solvay is responsible for clinical
trials and development and commercialising of the vaccine. It has successfully
concluded a Phase I clinical trial with the intranasal influenza vaccine,
triggering a milestone payment of Euro500,000 to Virosome Biologicals. The vaccine
was found to be safe and well tolerated. Solvay is continuing to test the
vaccine in Phase II clinical trials. Unlike certain other nasal flu vaccines,
this trial does not use live influenza virus.
Corporate Development
The Group has previously announced its intention to pursue value enhancing
opportunities through partnering or mergers and acquisitions with projects or
companies to secure development technologies, marketed products and/or marketing
and development companies. These opportunities are focussed on broadening the
Group's technology base and bring products in both immunology and related
therapeutic fields.
Having completed the acquisition of Bestewil, the Group continues to look for
further opportunities to enhance shareholder value through mergers or
acquisitions.
Financial review
In accordance with permissible accounting standards for AIM, as set out in AIM
Notice 22, the Group has adopted Australian IFRS for ongoing financial
information with effect from the year ended 30 June 2006.
The consolidated loss after tax for the 6 months ended 31 December 2006 was
A$1,802,973 (2005: A$3,762,697), approximately #0.7 million (2004: #1.6
million). Cash at 31 December 2006 was A$9,856,883 (2005: A$3,612,731),
approximately #4.0 million (2005: #1.5 million). All amounts expressed in pounds
sterling have been converted, on a proforma basis at the 31 December 2006 rate
of A$1:#0.4031 (2005 A$1:#0.4244).
Summary and Outlook
The Board would like to express its appreciation to all our shareholders for
their continued support throughout this period. 2007 promises to be a busy year
for Norwood Immunology, as we integrate the Bestewil acquisition and progress
towards key milestones of our clinical trials and commercialisation. We will
continue to be alert to further value enhancing opportunities through partnering
or mergers and acquisitions. I look forward to reporting further progress with
our full year results which are due in October 2007.
Peter Hansen
Chairman
29 March 2007
Income Statement
Note Unaudited Unaudited Audited
6 months to 6 months to 12 months
31 December 31 December to 30 June
2006 2005 2006
A$ A$ A$
Revenue from ordinary activities 69,295 - -
Other income/(expense) 12,930 96,063 191,847
Depreciation and amortization expense (4,333) (23,404) (27,653)
Employee benefits expense (745,682) (753,184) (1,220,998)
Finance costs (87,373) (19,821) (42,911)
Insurance (38,015) (54,019) (104,463)
Investor relations (124,005) (94,122) (184,276)
Legal costs (54,747) (442,502) (480,391)
Professional fees (74,982) (341,889) (457,969)
Parent entity management fees (60,000) (250,000) (490,000)
Travel expenses (85,985) (215,751) (307,053)
Research and development costs
immediately expensed (555,328) (1,588,642) (2,582,211)
Change in fair value of financial
assets classified fair value through
profit and loss - - (810,630)
Other expenses from ordinary
activities (54,748) (75,426) (197,841)
Loss before income tax expense (1802,973) (3,762,697) (6,714,549)
Income tax expense - - -
Loss for the period attributable to
members of the entity (1,802,973) (3,762,697) (6,714,549)
Loss per share
Basic 2 (0.013) (0.030) (0.054)
Diluted 2 (0.013) (0.030) (0.054)
All activities derive from continuing operations.
There are no recognised gains and losses for the current financial year and
preceding financial year other than as stated in the income statement.
Balance Sheet
Note Unaudited Unaudited Audited
as at as at as at
31 December 31 December 30 June
2006 2005 2006
A$ A$ A$
Current assets
Cash and cash equivalents 9,856,883 3,612,731 237,805
Trade and other receivables 15,255 25,924 18,233
Other 329,204 127,236 107,085
Total current assets 10,201,342 3,765,891 363,123
Non-current assets
Other financial assets - - -
Plant and equipment 9,389 8,835 7,052
Goodwill 3 20,284,774 - -
Intangible assets 3 5,101,742 4,775,403 5,008,423
Total non-current assets 25,395,905 4,784,238 5,015,475
Total assets 35,597,247 8,550,129 5,378,598
Current liabilities
Trade and other payables 1,159,732 1,462,212 935,326
Other financial liabilities - 624,821 1,223,793
Provisions 76,167 77,525 76,760
Total current liabilities 1,235,899 2,164,558 2,235,879
Non-current liabilities
Interest bearing liabilities 5 2,264,348 - -
Total non-current liabilities 2,264,348 - -
Total liabilities 3,500,247 2,164,558 2,235,879
Net assets 32,097,000 6,385,571 3,142,719
Equity
Issued capital 6 57,984,433 27,227,179 27,227,179
Other reserve - 291,000 -
Accumulated losses 6 (25,887,433) (21,132,608) (24,084,460)
Total equity 32,097,000 6,385,571 3,142,719
Cash flow Statement
Note Unaudited Unaudited Audited
6 months to 6 months to 12 months
31 December 31 December to 30 June
2006 2005 2006
A$ A$ A$
Cash flows from operating
activities
Receipts from customers - - -
Payments to suppliers and
employees (1,717,413) (3,077,190) (5,418,258)
Interest and other costs of
finance paid (41,582) (19,821) (42,911)
Net cash used in operating activities 7 (1,758,995) (3,097,011) (5,461,169)
Cash flows from investing
activities
Interest received 32,537 119,206 154,555
Payment for plant and equipment (1,963) (1,655) (1,655)
Payment for intangible assets (82,715) (177,394) (412,881)
Payment for investment securities - - (810,630)
Payment for businesses 4 (5,182,554) - -
Net cash used in investing activities (5,234,695) (59,843) (1,070,611)
Cash flows from financing activities
Repayment of loan funds from
holding company (1,223,793) - -
Loan funds from related party 1,567,946 - -
Payment for share issue costs (537,330) - -
Proceeds from issue of shares 16,805,945 - -
Net cash provided by/(used in)
financing activities 16,612,768 - -
Net increase/(decrease) in cash
and cash equivalents 9,619,078 (3,156,854) (6,531,780)
Cash and cash equivalents at the beginning
of the period 237,805 6,769,585 6,769,585
Effects of exchange rate changes on the
balance of cash held in foreign currencies - - -
Cash and cash equivalents at the end of the
period 9,856,883 3,612,731 237,805
NOTES TO THE FINANCIAL INFORMATION
1 Basis of preparation
The results for the half-year are unaudited. The financial information in this
interim statement does not constitute the statutory financial statements within
the meaning of section 240 of the Companies Act 1985.
In accordance with permissible accounting standards for AIM, as set out in AIM
Notice 22, the Group has adopted Australian IFRS for ongoing financial
information with effect from the year ending 30 June 2006.
The financial information in this announcement has been prepared on the basis of
Australian IFRS and the accounting policies as set out in the most recently
published set of annual financial statements. The interim results and prior year
comparative results have been prepared using accounting policies consistent with
those adopted in the audited financial statements for the year to 30 June 2006.
This includes restated prior year comparatives for the 6 months to 31 December
2005.
The financial information for the year ended 30 June 2006, has been extracted
from the audited financial statements for the year ended 30 June 2006. The
auditor's report on those accounts was unqualified.
This interim statement was approved by the board of Norwood Immunology Limited
on 29 March 2006.
This interim statement of unaudited results for the 6 months ended 31 December
2006 is, from today 30 March 2007, available on the Company's website
www.norwoodimmunology.com.
2 Basic and diluted loss per ordinary share
The calculations of earnings per share are based on the following losses and
numbers of shares.
Unaudited Unaudited Audited
6 months to 6 months to 12 months
31 December 31 December to 30 June
2006 2005 2006
A$ A$ A$
Loss for the financial period (1,802,973) (3,762,697) (6,714,549)
Weighted average number of shares: No. No. No.
For basic earnings per share 143,182,669 123,911,463 123,911,463
Exercise of share options - - -
For diluted earnings per share 143,182,669 123,911,463 123,911,463
EPS has been prepared using Australian IFRS results but consistent with UK GAAP
under FRS 14, presentation of diluted EPS is required when a company could be
called upon to issue shares that would decrease net profit or increase net loss
per share. The loss and weighted average number of ordinary shares for the
purpose of calculating the diluted earnings per ordinary share are identical to
those used for the basic earnings per ordinary share, as the exercise of share
options would have the effect of reducing the loss per ordinary share and is
therefore not dilutive.
3 Other intangible assets
gross carrying value Goodwill Patents Total
A$ A$ A$
Balance at 1 July 2005 - 4,619,735 4,619,735
Additions from internal developments - 412,880 412,880
Net revaluation increments/(decrements) - - -
Balance at 30 June 2006 - 5,032,615 5,032,615
Additions from internal developments - 82,689 82,689
Net revaluation increments/(decrements) - - -
Increase through business combinations 20,284,774 13,238 20,298,012
Balance at 31 December 2006 20,284,774 5,128,542 25,413,316
Accumulated amortisation Goodwill Patents Total
A$ A$ A$
Balance at 1 July 2005 - - -
Amortisation expense - 24,192 24,192
Balance at 30 June 2006 - 24,192 24,192
Amortisation expense - 2,608 2,608
Balance at 31 December 2006 - 26,800 26,800
Net book value Goodwill Patents Total
A$ A$ A$
As at 30 June 2005 - 4,619,735 4,619,735
As at 30 June 2006 - 5,008,423 5,008,423
As at 31 December 2006 20,284,774 5,101,742 25,386,516
Goodwill relates to the business acquisitions completed in the 6 months to 31
December 2006, as detailed in Note 4.
4 Business Acquisitions
On 27 November the Group completed its acquisition of all of the issued shares
of Bestewil Holding B.V. ("Bestewil") and its 100% subsidiary Virosome
Biologicals B.V. ("Virosome Biologicals") ("Acquisition"). The consideration for
the acquisition, comprised 48,014,489 ordinary shares in Norwood Immunology as
part consideration and cash of Euro3.5 million (Euro3 million of which was paid on
completion and Euro0.5 million being deferred until 27 May 2008, with rolled up
interest payable on the deferred amount at 6% per annum).
The fair value of the identifiable assets and liabilities of Bestewil and
details of the acquisition are as follows:
27 November
2006
A$
Consideration
Cash and cash equivalents 5,431,343
Transaction costs capitalised 586,725
Ordinary shares 14,346,959
Deferred purchase consideration (note 5) 838,082
21,203,109
Fair value of net assets acquired
Current assets:
Cash and Cash equivalents 835,514
Current trade and other receivables 3,509
Other 226,972
Non-current assets:
Patents 13,212
Plant & Equipment 2,099
Current liabilities:
Payables (162,971)
Net assets acquired 918,335
Goodwill on acquisition 20,284,774
Net cash outflow on acquisition
Cash and cash equivalents consideration 5,431,343
Transaction costs capitalised 586,725
Less cash and cash equivalent balances (835,514)
acquired
5,182,554
The goodwill on the above acquisition is attributed to the expected future value
of the businesses acquired. The assets and liabilities acquired are stated at
their fair values, using an exchange rate at the date of acquisition of A$1:Euro
0.5994. Fair values are equal to the carrying values in the books of the
acquirer immediately prior to the acquisition with the exception of identifiable
intangibles which will be subject to a separate valuation exercise.
The above acquisition for the 31 December 2006 interim accounts has been
provisionally accounted for based on the best information available at the date
of this report. It is possible that the provisional assessments of fair values
assigned to the assets and liabilities acquired may change once the value of the
identifiable intangibles has been determined. In accordance with applicable
accounting standards Norwood Immunology has 12 months from the date of
acquisition to finalise the accounting for these acquisitions.
Since acquisition on 27 November 2006, Bestewil has contributed revenue of A$
nil and net loss after tax of A$98,563 to the consolidated group.
5 Non-current interest bearing liabilities
31 December 31 December 30 June
2006 2005 2006
A$ A$ A$
Convertible loan note 1,424,111 - -
Deferred consideration 840,237 - -
2,264,348 - -
In September 2006, the Group entered into a secured facility agreement with
Indus Opportunity Master Fund, Ltd ('Indus') for A$1 million (the "Loan"). The
Loan was a draw down facility for up to A$1 million repayable within 12 months
of the first drawing of funds and bearing monthly interest at 12% per annum. On
27 October 2006 the facility was extended to up to A$2 million with repayment by
not later than 30 June 2008. At the time the facility was extended, Indus was
also granted the option to convert any or all of the outstanding balance in
ordinary shares at an issue price of #0.12 per share. A$1,520,000 was drawn-down
against that facility as at 31 December 2006,
This is a compound financial instrument comprising a debt instrument with an
embedded conversion option into ordinary shares. AASB requires the issuer of
such a financial instrument to present the liability component and the equity
component separately on the balance sheet. As such, A$1,278,320 has been
recognised in non-current interest bearing liabilities as convertible loan, with
the balance above comprising borrowing costs to 31 December 2006. The equity
portion of the convertible loan note of A$141,680 has been included in equity as
set out in note 6.
On 27 November 2006 the Group completed the acquisition of all of the issued
shares of Bestewil. As part of the consideration for the acquisition a payment
of Euro0.5 million (A$838,082) is deferred until 27 May 2008, the balance above
comprises rolled up interest payable on the deferred amount at 6% per annum.
6 Statement of Changes in Equity
for the 6 months ending 31 December 2006 for the 6 months ending 31 December 2005
Issued Accumulated Other Issued Accumulated Other
capital losses reserves Total capital losses reserves Total
A$ A$ A$ A$ A$ A$ A$ A$
Opening balance 27,227,179 (24,084,460) - 3,142,719 27,227,179 (17,369,911) 291,000 10,148,268
Loss for the
period - (1,802,973) - (1,802,973) - (3,762,697) - (3,762,697)
Issue of shares -
cash 16,805,945 - - 16,805,945 - - - -
Issue of shares -
acquisition 14,346,959 - - 14,346,959 - - - -
Share issue costs (537,330) - (537,330) - - - -
Equity portion of
Convertible note 141,680 141,680
Closing balance 57,984,333 (25,887,433) - 32,097,000 27,227,179 (21,132,608) 291,000 6,385,571
Issued capital No.
Number at 1 July 2006 123,911,463
Shares issued during period 104,329,924
Number at 31 December 2006 228,241,387
Fully paid ordinary shares carry one vote per share and carry the
right to dividends
7 Reconciliation of loss from ordinary activities after related
income tax to net cash flows from operating activities
Unaudited Unaudited Audited
as at as at as at
31 December 31 December 30 June
2006 2005 2006
A$ A$ A$
Loss from ordinary activities after
related income tax (1,802,973) (3,762,697) (6,714,549)
Depreciation 4,333 23,404 27,653
Net unrealised foreign exchange loss/
(gain) - 23,143 (37,292)
Interest received (32,537) (119,206) (154,554)
Impairment of non-current asset - - 810,630
Reversal of share-based payments - - (291,000)
Decrease/(increase) in current
receivables 6,487 6,363 14,054
Decrease/(increase) in current
prepayments 4,853 36,092 56,243
Increase/(decrease) in current payables 61,435 683,316 815,837
(Decrease)/increase in provisions (593) 12,574 11,809
Net cash used in operating activities (1,758,995) (3,097,011) (5,461,169)
8 Contingent liabilities
On 1 August 2005, the Group signed a contract research agreement with The
General Hospital Corporation (Massachusetts General Hospital), in terms of the
agreement the Group is contracted for a total A$1,660,000 (USD1,212,000) of
which A$388,618 (approximately USD289,000) has been either paid or accrued to 31
December 2006. The funding commitment is staggered and based on a number of
specific stages and sub-stages, at each of these stages the Group has to
formally approve the commencement of the next phase. This gives the Group the
opportunity to halt the trial and limit funding commitment. The agreement can be
terminated at any time at the request of either party.
Other then the items disclosed, there has been no other change in contingent
liabilities since the interim statement date.
9 Events after the balance sheet date
There has not been any other matter or circumstance, other than that referred to
in the financial statements or notes thereto, that has arisen since the end of
the financial period, that has significantly affected, or may significantly
affect, the operation of the Group, the results of those operations, or the
state of affairs of the Group in the future financial periods.
10 UK GAAP Reconciliation
The financial information in this announcement has been prepared on the basis of
Australian IFRS and the accounting policies as set out in the most recently
published set of annual financial statements. In accordance with permissible
accounting standards for AIM, as set out in AIM Notice 22, the Group has adopted
the Australian IFRS for ongoing financial information with effect from the year
ending 30 June 2006. This includes restated prior year comparatives for the 6
months to 31 December 2005.
In prior years the Group has previously reported financial statements under UK
GAAP with net assets at 31 December 2005 of A$1,610,167. Under A-IFRS the net
assets at 31 December 2005 are reported as A$6,385,571. The difference of
A$4,775,404 entirely comprises intangible assets - patents recognised in the
financial statements prepared under A-IFRS.
Under A-IFRS patent costs have been capitalised and recorded at the cost of
acquisition. Amortisation of the intellectual property begins upon the
commercialisation of the related project and continues over the periods in which
the corresponding benefits are expected to arise. The directors regularly review
the carrying value of the intellectual property and patents to ensure its
carrying value does not exceed its recoverable amount, based on the cashflow
forecast and advancement of project milestones.
END
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Norwood Immunology (LSE:NIM)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024
