Announcement PDF RECCE PHARMACEUTICALS LTD Appendix 4D Current Reporting Period: 31 December 2022 Previous Reporting Period: 31 December 2021 Results for Announcement to the Market Percentage Change Revenue from ordinary activities $ - 0.00% to - Loss from ordinary activities after tax attributable to members down 85.06% to (9,222,578) Net loss for the period attributable to members down 85.06% to (9,222,578) Brief explanation of Results Operational Report During the reporting period, significant advances were made in support of the development of the Company’s anti-infective portfolio. Highlights for the half year to 31 December 2022 included: • Dosing at 6,000mg was completed for Cohort 7 for the Phase I intravenous (IV) clinical trial of RECCE® 327 (R327) over 1-hour I.V. infusion, with no serious adverse effects among 10 healthy male subjects. • Ethics approval was received to begin a Phase I/II clinical trial assessing R327 as a spray-on, broadspectrum antibiotic therapy for mild skin and soft tissue diabetic foot infections (DFI). The study is being conducted at the South West Sydney Limb Preservation and Wound Research Unit, located at the Ingham Institute of Medical Research. • Dr Philip Sutton was appointed as Vice President of Translational Sciences, joining on a full-time basis. Dr Sutton has taken a leading role in advancing Recce’s compounds across a portfolio of infectious disease programs. • An Anti-Infective Research (AIR) Unit was established at Murdoch Children’s Research Institute through the execution of a research collaboration agreement, securing a dedicated Murdoch Children's research team with access to infectious disease expertise and fit-for-purpose laboratory space. • Alistair McKeough was appointed to the Board of Directors as Non-Executive Director and Maggie Niewidok appointed as Company Secretary. Alistair previously served as Recce Pharmaceuticals’ Company Secretary and primary legal adviser. Appendix 4D • US-based Dr John Prendergast was appointed Executive Chairman, having joined the Board of Directors as Non-Executive Director in April 2018. • Executive Director and Chief Scientific Officer, Michele Dilizia, delivered the Opening R&D Address at the World Anti-Microbial Resistance Conference, positioning Recce as a sign of new hope in the fight against superbugs on the international stage. • SARS-CoV-2 studies demonstrated significant efficacious activity of R327 against the SARS-CoV-2 virus in the throat of Syrian golden hamsters – the gold standard in COVID studies. Clinical Progress The Company made considerable clinical progress during the half-year period ending 31 December 2022, highlighted by completing a Phase I intravenous (IV) clinical trial in 80 healthy human volunteers. Further, the Company received ethics approval to begin a new Phase I/II clinical trial to assess R327 as a spray-on, broad-spectrum antibiotic therapy for mild skin and soft tissue diabetic foot infections (DFI). The Phase I intravenous (IV) clinical trial of R327 over 1 hour I.V. infusion successfully dosed the last 10 subjects at 6,000mg seeing the study achieve all primary end-points across 80 healthy human subjects. The dose levels achieved are believed to be efficacious, having been identified in animal models previously. Uniquely, the compound was identified as culminating in the human bladder in high (up to 20X) concentrations, strongly encouraging possible UTI/Urosepsis applicability. Phase II Efficacy studies to determine are well underway. Human Research Ethics Committee (HREC) approval was received to start a Phase I/II clinical trial assessing R327 as a spray-on, broad-spectrum antibiotic therapy for mild skin and soft tissue diabetic foot infections (DFI). The trial will enrol up to 32 patients and will be conducted at Sydney South West’s Limb Preservation and Wound Research Unit. Ethics approval for this clinical trial is confirmation that the Company has completed the necessary pre-clinical safety and efficacy testing of R327 required to commence human clinical trials and runs in addition to its other ongoing clinical trials. An Anti-Infective Research (AIR) Unit was established through the execution of a research collaboration agreement with Murdoch Children’s Research Institute (Murdoch Children's), securing a dedicated Murdoch Children's research team with access to infectious disease expertise and fit-for-purpose laboratory space. Research activities conducted in Recce’s AIR Unit will advance the Company’s Bacterial Sinusitis program, Mycobacterium abscessus program, and more. The Company also provided an update on the findings in SARS-CoV-2 studies undertaken by an independent, third-party contract research organisation (CRO), Netherlands-based CRO, Viroclinics. These studies demonstrated significant efficacious activity of R327 against the SARS-CoV-2 virus in the throat of Syrian golden hamsters – the gold-standard in COVID studies. R327 was shown to significantly reduce SARS-CoV-2 levels in a dose-dependent manner, in throat swab samples collected from animals, providing Appendix 4D proof-of-concept that intra-nasal treatment with R327 has the potential to reduce SARS-CoV-2 levels during infection. The Company looks forward to updating shareholders on the progress of new and ongoing clinical trials and releasing its further in-human data sets. Strong financial position The Company has since received a cash inflow of A$6.21m from the Australian Government’s R&D Rebate and Radium Capital’s R&D Advance covering the period of 1 July 2022 - 30 November 2022 (announced 25 January 2023). These inflows provide the company with a significant cash injection to support ongoing operations and offset otherwise traditional capital-raising requirement in the near term. Financial Report The half-year operating loss for the period was $9,222,578 (2021: loss of $4,983,636). The increase was as a result of increased R&D related costs. The loss per share for the period was 5.26 cents (2021: 3.75 cents). Dividends Amount per Security Nil Nil N/A N/A Final Dividend Interim Dividend Date the Dividend is Payable: Record Date for determining entitlements to the Dividends: Percentage Franked N/A N/A N/A N/A The Company did not declare a dividend during the financial period and has not declared a dividend since the end of the financial period. Net Tangible Assets per Security As at 31 December 2022 (cents) As at 31 December 2021 (cents) 0.69 8.93 The half year report is based on accounts that have been subject to an audit review and there is no dispute or qualification with the auditors in relation to these accounts. RECCE PHARMACEUTICALS LTD ABN 73 124 849 065 INTERIM REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2022 RECCE PHARMACEUTICALS LTD ABN 73 124 849 065 TABLE OF CONTENTS PAGE 1 Directors' Report 1 2 Auditor's Independence Declaration 3 3 Consolidated Statement of Profit or Loss and Other Comprehensive Income 4 4 Consolidated Statement of Financial Position 5 5 Consolidated Statement of Changes in Equity 6 6 Consolidated Statement of Cash Flows 7 7 Notes to the Consolidated Financial Statements 8 8 Declaration by Directors 16 9 Independent Auditor's Review Report 17 RECCE PHARMACEUTICALS LTD ABN 73 124 849 065 DIRECTORS' REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2022 The Directors present their report together with the interim consolidated financial report of Recce Pharmaceuticals Ltd (the "Company") and controlled entities (the "Group") for the half-year ended 31 December 2022. Directors The following persons held office as Directors of the Company during the half-year and up to the date of this report: Dr John Prendergast Dr Alan Dunton Mr James Graham Ms Michele Dilizia Dr Justin Ward Mr Alistair McKeough Executive Chairman (appointed 5 September 2022) Non-Executive Director Managing Director and Chief Executive Officer Executive Director and Chief Scientific Officer Executive Director and Principal Quality Chemist Non-Executive Director (appointed 1 September 2022) Principal Activity The Group is pioneering the development and commercialisation of a new class of Synthetic AntiInfectives designed to address the urgent global health problems of antibiotic-resistant superbugs and emerging viral pathogens. Patented lead candidate RECCE® 327 as an intravenous therapy is being developed for treatment of serious and potentially life-threatening infections including sepsis due to Gram-positive and Gram-negative bacteria and their superbug forms. Review of Operations On 11 July 2022, the Company announced the appointment of Dr Philip Sutton as Vice President of Translational Sciences. On 5 August 2022, the Company settled its legal dispute in relation to the Class C and Class D Performance shares issued to former directors/KMP with the cash payment of $1,417,527 as full and final settlement of all matters in the dispute. This amount was recognised as a provision at 30 June 2022. On 22 August 2022, the Company announced Phase I intravenous (IV) clinical trial of RECCE® 327 Cohort 7 at 6,000mg (120-fold increase on Cohort One 50mg dose) over 1 hour I.V. infusion, with no serious adverse effects among 10 healthy male subjects. On 1 September 2022, the Company announced the appointment of Alistair McKeough as NonExecutive Director and Maggie Niewidok as Company Secretary. On 5 September 2022, the Company announced the appointment of Dr John Prendergast as Executive Chairman. On 27 September 2022, the Company provided an updated timeline on its clinical programs with several significant data read-outs in 2022 and 2023. 1 RECCE PHARMACEUTICALS LTD ABN 73 124 849 065 DIRECTORS' REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2022 Review of Operations (Continued) On 18 October 2022, the Company provided an update on the findings in SARS-CoV-2 studies undertaken by an independent, third party contract research organisation. On 9 December 2022, the Company announced it had received Human Research Ethics Committee approval to start its Phase I/II clinical trial assessing R327 as a spray-on, broad-spectrum antibiotic therapy for mild skin and soft tissue diabetic foot infections. On 15 December 2022, the Company announced the commencement of an Anti-Infective Research Unit through the execution of a research collaboration agreement with Murdoch Children’s Research Institute, securing a dedicated Murdoch Children's research team of infectious disease experts, fit-forpurpose laboratory space, access to a library of clinical isolates and drug-resistant pathogens. Results of Operations The half-year operating loss for the period was $9,222,578 (2021: loss of $4,983,636). The increase was as a result of increased R&D related costs. The Group's current focus is on progressing RECCE® 327 into human clinical trials. Events Subsequent to Reporting Period Subsequent to the period end, the Company received its R&D rebate of $4,311,202 and a R&D advance of $1,908,039. Other than the above, no matters or circumstances have arisen since the end of the financial period, which significantly affected, or may significantly affect, the operations of the Group, the results of those operations, or state of affairs of the Group in future financial periods. Rounding of amounts In accordance with ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191, the amounts in the Directors' Report have been rounded to the nearest dollar, unless otherwise Auditor's independence declaration A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 3. This report is made in accordance with a resolution of the Board of Directors. Dr John Prendergast Executive Chairman 27 February 2023 2 Tel: +61 8 6382 4600 Fax: +61 8 6382 4601 www.bdo.com.au Level 9, Mia Yellagonga Tower 2 5 Spring Street Perth, WA 6000 PO Box 700 West Perth WA 6872 Australia DECLARATION OF INDEPENDENCE BY NEIL SMITH TO THE DIRECTORS OF RECCE PHARMACEUTICALS LTD As lead auditor for the review of Recce Pharmaceuticals Ltd for the half-year ended 31 December 2022, I declare that, to the best of my knowledge and belief, there have been: 1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and 2. No contraventions of any applicable code of professional conduct in relation to the review. This declaration is in respect of Recce Pharmaceuticals Ltd and the entities it controlled during the period. Neil Smith Director BDO Audit (WA) Pty Ltd Perth 27 February 2023 BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation. 3 RECCE PHARMACEUTICALS LTD ABN 73 124 849 065 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2022 Note Revenue Other income Interest income Expenses Laboratory expenses Employee benefits expenses Depreciation and amortisation expenses Share based payments expense Travel expenses Patent related costs Rental outgoing expenses Finance costs Professional services Other expenses Amortisation: Leases Interest expenses: Leases 17 Loss before income tax 31 December 2022 $ - 31 December 2021 $ - 38,823 38,823 53,281 53,281 (4,081,938) (2,186,266) (22,580) (325,217) (558,106) (117,278) (118,733) (2,546) (925,280) (867,070) (52,705) (3,683) (9,261,401) (2,417,640) (1,257,463) (25,815) (58,653) (45,376) (17,245) (630) (307,399) (818,181) (82,447) (6,069) (5,036,917) (9,222,578) (4,983,636) - - (9,222,578) (4,983,636) - - (9,222,578) (4,983,636) Cents Cents Income tax expense Loss for the period after income tax Other comprehensive income Total comprehensive loss for the period Loss per share: Basic loss per share for the period Diluted loss per share for the period 6 6 (5.26) (5.26) (3.75) (3.75) Dividends per share for the period 7 - - The accompanying condensed notes form part of these consolidated financial statements. 4 RECCE PHARMACEUTICALS LTD ABN 73 124 849 065 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2022 Note ASSETS CURRENT ASSETS Cash and cash equivalents Trade and other receivables Other current assets TOTAL CURRENT ASSETS 8 31 December 2022 30 June 2022 $ $ 1,848,749 105,004 206,352 2,160,105 11,581,934 182,474 421,027 12,185,435 353,111 124,812 477,923 371,243 67,537 438,780 2,638,028 12,624,215 800,697 308,272 58,571 1,167,540 752,013 202,548 1,417,528 74,762 2,446,851 68,890 164,263 115,313 TOTAL LIABILITIES 1,400,693 2,562,164 NET ASSETS 1,237,335 10,062,051 44,040,966 8,876,156 (51,679,787) 43,968,321 8,550,939 (42,457,209) 1,237,335 10,062,051 9 NON-CURRENT ASSETS Plant and equipment Right of Use Asset TOTAL NON-CURRENT ASSETS 10 11 TOTAL ASSETS LIABILITIES CURRENT LIABILITIES Trade and Other Payables Provisions for employee benefits Other provisions Current lease liabilities TOTAL CURRENT LIABILITIES 12 13 NON-CURRENT LIABILITIES Non-current lease liabilities Provisions for employee benefits EQUITY Share capital Reserves Accumulated losses 14 15 TOTAL EQUITY The accompanying condensed notes form part of these consolidated financial statements. 5 RECCE PHARMACEUTICALS LTD ABN 73 124 849 065 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2022 Total $ Accumulated Losses $ 43,297,309 8,678,057 (31,471,625) 20,503,742 - - (4,983,636) (4,983,636) (4,983,636) (4,983,636) - - - - BALANCE AT 31 DECEMBER 2021 43,297,309 8,678,057 (36,455,261) 15,520,106 BALANCE AT 1 JULY 2022 43,968,323 8,550,939 (42,457,209) 10,062,053 - - (9,222,578) (9,222,578) (9,222,578) (9,222,578) 72,643 72,643 325,217 325,217 - 325,217 72,643 397,860 44,040,966 8,876,156 (51,679,787) 1,237,335 BALANCE AT 1 JULY 2021 Share Capital $ Reserves COMPREHENSIVE INCOME: Loss for the period Other comprehensive income $ TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS: Issuance of shares (net of cash-settled share issue costs) Options issued to Directors Options issued to lead manager as capital raising cost Conversion of options into ordinary shares Share-based payments Transfers from reserves to share capital COMPREHENSIVE INCOME: Loss for the period Other comprehensive income TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS: Issuance of shares (net of cash-settled share issue costs) Options issued to Directors Options issued to lead manager as capital raising cost Conversion of options into ordinary shares Share-based payments Transfers from reserves to share capital BALANCE AT 31 DECEMBER 2022 The accompanying condensed notes form part of these consolidated financial statements. 6 RECCE PHARMACEUTICALS LTD ABN 73 124 849 065 CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2022 31 December 2022 $ 31 December 2021 $ CASH FLOWS FROM OPERATING ACTIVITIES Payments to suppliers and employees Payment to settle legal dispute Interest received Interest and other costs of finance paid NET CASH USED IN OPERATING ACTIVITIES (8,814,864) (1,417,527) 38,824 (2,546) (10,196,113) (4,792,477) 53,281 (630) (4,739,826) CASH FLOWS FROM INVESTING ACTIVITIES Purchases of plant and equipment Other related receipts/(payments ) NET CASH USED IN INVESTING ACTIVITIES (4,449) 394,734 390,285 (9,078) (298,332) (307,410) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from exercise of options NET CASH PROVIDED BY FINANCING ACTIVITIES 72,643 72,643 - Net decrease in cash and cash equivalents held (9,733,185) (5,047,236) Cash and cash equivalent at the beginning of the period 11,581,934 20,873,022 CASH AND CASH EQUIVALENTS AT END OF THE PERIOD 1,848,749 15,825,786 The accompanying condensed notes form part of these consolidated financial statements. 7 RECCE PHARMACEUTICALS LTD ABN 73 124 849 065 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2022 NOTE 1: GENERAL INFORMATION The consolidated financial report of Recce Pharmaceuticals Ltd (the "Company") and its controlled entities (the "Group") for the half year ended 31 December 2022 was authorised for issue in accordance with a resolution of the Directors on 27 February 2023. The Company is a company limited by shares incorporated and domiciled in Australia whose shares are publicly traded on the Australian Securities Exchange (ASX: RCE) and the Frankfurt Stock Exchange (FSE: R9Q). NOTE 2: ACCOUNTING POLICIES (a) Basis of preparation of the consolidated financial report These financial statements are general purpose financial statements for the half year ended 31 December 2022 have been prepared in accordance with Australian Accounting Standards 134 Interim Financial Reporting and the Corporations Act 2001. The half year consolidated financial report does not include all notes of the type normally included within the annual financial report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the Company as the full financial report. Accordingly, the half-year consolidated financial report should be read in conjunction with the annual report for the year ended 30 June 2022 and considered together with any public announcements made by the Company during the half year ended 31 December 2022 in accordance with the continuous disclosure obligations of the ASX Listing Rules and the Corporations Act 2001. Historical Cost Convention The consolidated financial statements have been prepared on an accrual basis and are based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities. (b) Adoption of new and revised standards The Group has reviewed all of the new and revised standards and interpretations issued by the Australian Accounting Standards Board that are relevant to its operations and effective for the current half-year. The Group has also reviewed all standards and interpretations that have been issued but are not yet effective for the half-year ended 31 December 2022. As a result of this review, the Directors have determined that there is no material impact on the Group and, therefore no material change is necessary to Group accounting policies. (c) Rounding of amounts to nearest dollar In accordance with ASIC Corporations (Rounding of Financial/Directors' Reports) Instrument 2016/191, the amounts in the consolidated financial report have been rounded to the nearest dollar. NOTE 3: CRITICAL ACCOUNTING JUDGEMENTS AND SOURCES OF ESTIMATION UNCERTAINTY The preparation of the consolidated financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts in the consolidated financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and assumptions on historical experience and on other various factors, including expectations of future events, management believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are discussed below. 8 RECCE PHARMACEUTICALS LTD ABN 73 124 849 065 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2022 NOTE 3: CRITICAL ACCOUNTING JUDGEMENTS AND SOURCES OF ESTIMATION UNCERTAINTY (Continued) Recovery of deferred tax assets Deferred tax assets are recognised for deductible temporary differences only if the Group considers it is probable that future taxable amounts will be available to utilise those temporary differences and losses. At 31 December 2022, no deferred tax assets on temporary differences and carry forward losses were recognised. Share-based payment transactions The Company measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. The fair value is determined by using either the Trinomial or Black-Scholes model taking into account the terms and conditions upon which the instruments were granted. The accounting estimates and assumptions relating to equity-settled share-based payments would have no impact on the carrying amounts of assets and liabilities within the next annual reporting year but may impact profit or loss and equity. NOTE 4: GOING CONCERN For the half-year ended 31 December 2022 the Group recorded a loss of $9,222,578 (2021: $4,983,636) and had net cash outflows from operating activities of $10,196,113 (2021: $4,739,826). On 25 January 2023 the Company announced total Research and Development (R&D) cash receivable of A$6,219,241. These amounts were received in January and February 2023. The ability of the Company to continue as a going concern and being able to fund its operating activities is dependent on securing additional funding through share placements to new or existing investors and financial support through short term loans, together with continuous receipt of the R&D tax rebate. These conditions indicate a material uncertainty that may cast significant doubt about the Company's ability to continue as a going concern and therefore, that it may be unable to realise its assets and discharge its liabilities in the normal course of business. The financial statements have been prepared on the basis the Company is a going concern, which contemplates the continuity of normal business activities, realisation of assets and settlement of liabilities in the normal course of the business. The financial report does not contain any adjustments relating to the recoverability and classification of recorded asset amounts, nor to the amounts or classification of liabilities that might be necessary should the Company not be able to continue as a going concern. NOTE 5: SEGMENT INFORMATION (a) Reportable segments The Directors have considered the requirements of AASB 8 Operating Segments and the internal reports that are reviewed by the chief operating decision maker (the Board of Directors) in allocating resources and have concluded that at this time there are no separate identifiable segments as the Group operates in only one business segment being research and development of pharmaceutical drugs. However, the Group operates in three geographic segments being Australia, Canada and the USA. 9 RECCE PHARMACEUTICALS LTD ABN 73 124 849 065 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2022 NOTE 5: SEGMENT INFORMATION (Continued) (b) Segment results The following is an analysis of the Group’s results by reportable segments: Australia USA Europe Canada Central Administration Segment revenue and other income for the period 31 December 31 December 2021 2022 $ $ 19,206 12,154 1,626 168 38,823 20,126 38,823 53,281 Segment loss after tax for the period 31 December 2022 $ (4,916,144) (599,979) (31,922) (3,674,533) (9,222,578) 31 December 2021 $ (1,796,436) (1,136,820) (152,131) (15,748) (1,882,500) (4,983,636) The segment revenue and other income above comprises bank interest. The accounting policies of the reportable segments are the same as the Group’s accounting policies described in the Group’s 30 June 2022 notes to the consolidated financial statements. Segment loss represents the loss after tax incurred by each segment. This is the measure reported to the Board of Directors for the purposes of resource allocation and assessment of segment performance. (c) Segment assets and liabilities Australia USA Europe Canada Central Administration Segment assets at end of the period 31 December 30 June 2022 2022 $ $ 314,918 332,270 2,323,111 12,291,944 2,638,028 12,624,214 Segment liabilities at end of the period 31 December 30 June 2022 2022 $ $ 1,400,693 2,562,163 1,400,693 2,562,163 31 December 2022 $ 314,918 922,418 1,237,335 (d) Segment net assets Australia USA Europe Canada Central Administration 10 30 June 2022 $ 332,270 9,729,781 10,062,051 RECCE PHARMACEUTICALS LTD ABN 73 124 849 065 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2022 NOTE 6: LOSS PER SHARE The following reflects the loss and share data used in the calculations of basic and diluted losses per share: Note Loss for the period attributable to the members of the parent Weighted average number of shares: Weighted average number of ordinary shares used in calculating basic loss per share Effect of dilutive securities: Adjusted weighted average number of ordinary shares used in calculating diluted loss per share Loss per share (cents per share): Basic loss per share for the period Diluted loss per share for the period 31 December 2022 $ (9,222,578) 31 December 2021 $ (4,983,636) 175,418,927 132,764,977 175,418,927 132,764,977 (5.26) (5.26) (3.75) (3.75) NOTE 7: DIVIDENDS PAID AND PROPOSED The Company has not declared any dividends during and/or since the end of the half-year 31 December 2022 (31 December 2021: $nil). 31 December 2022 NOTE 8: CASH AND CASH EQUIVALENTS Cash at bank Cash on hand 1,848,309 440 1,848,749 30 June 2022 11,581,494 440 11,581,934 NOTE 9: OTHER CURRENT ASSETS Prepayments Rental Deposits Staff Advances Director Loans 18 11 $ 86,640 38,000 23,461 58,251 206,352 $ 20,100 400,927 421,027 RECCE PHARMACEUTICALS LTD ABN 73 124 849 065 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2022 31 December 2022 NOTE 10: PLANT AND EQUIPMENT NON-CURRENT Laboratory plant and equipment At cost Less accumulated depreciation Office furniture and equipment At cost Less accumulated depreciation Computer equipment At cost Less accumulated depreciation Office improvements At cost Less accumulated depreciation Library and website costs At cost Less accumulated depreciation Total Plant and Equipment 30 June 2022 542,153 (269,243) 272,910 542,153 (253,104) 289,049 68,407 (42,848) 25,559 64,232 (40,610) 23,622 55,046 (42,438) 12,608 54,772 (39,456) 15,316 78,646 (37,589) 41,057 78,646 (36,481) 42,165 7,176 (6,199) 977 7,176 (6,085) 1,091 353,111 371,243 Reconciliations Movement in the carrying amounts of the plant and equipment between the beginning and the end of the current financial period. $ Opening balance, 1 July 2022 371,243 Additions 4,449 Depreciation expense (22,581) Ending balance, 31 December 2022 353,111 NOTE 11: NON-CURRENT ASSETS - RIGHT-OF-USE ASSETS Land and buildings - right-of-use Less: Accumulated depreciation 177,517 (52,705) 124,812 206,710 (139,173) 67,537 384,711 220,119 53,500 142,367 800,697 481,429 173,277 53,500 43,807 752,013 NOTE 12: TRADE AND OTHER PAYABLES CURRENT Trade payables Employee related payables Sundry creditors Other payables 12 RECCE PHARMACEUTICALS LTD ABN 73 124 849 065 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2022 31 December 2022 $ NOTE 13: OTHER PROVISIONS CURRENT Provision for legal settlement 30 June 2022 $ - 1,417,528 1,417,528 1,417,528 (1,417,528) - 1,417,528 1,417,528 Movements in other provision Opening balance Provision for legal dispute settle