TIDMRENX
RNS Number : 7726E
Renalytix AI PLC
03 March 2020
This announcement contains inside information
Renalytix AI plc
("RenalytixAI", the "Company" or the "Group")
Half-year Report
Renalytix AI plc (LSE: RENX), the AIM-traded developer of
clinical grade artificial intelligence in vitro diagnostics for
kidney disease, announces its unaudited interim results for the six
months ended 31 December 2019, a period of considerable progress in
advancing the processes of regulatory and reimbursement approval
and preparing for commercialisation.
Operational highlights
-- CPT reimbursement code 0105U for KidneyIntelX(TM) became
effective across the US on 1 October 2019
-- Medicare national pricing for KidneyIntelX(TM) set at $950 per reportable test result
-- First positive coverage insurance payor determination
-- Medicare coverage determination process initiated with results expected H1 calendar 2021
-- Regulatory review processes for KidneyIntelX (TM) continue on track
-- Completed 3,500-patient diabetic kidney disease study
evaluating the effectiveness of KidneyIntelX(TM)
-- Key leadership appointments including Dr. Chirag Parikh
(Non-Executive Director) and Thomas McLain (President & Chief
Commercial Officer)
-- Additional key operating hires to support commercial operations
-- Expansion of intellectual property portfolio
-- Advancing commercial discussions with additional insurance payors and healthcare providers
-- US Presidential Executive Order, Advancing American Kidney Health, prioritizes the need for transformation in the prevention and treatment of kidney disease
Financial highlights
-- Placing of new ordinary shares raising gross proceeds of
GBP14.0m ($17.4m) at price per share of 250p ($3.11), a 106%
premium to the IPO price per share of 121p ($1.51)
-- Cash and equivalents on hand as at 31 December 2019: $20.8m
(31 December 2018: $13.1m; 30 June 2019: $9.3m)
-- $1.9m invested in assay development, laboratory equipment and
clinical validation during the period ($3.5m invested since
inception)
-- Net loss after tax for the period of $3.8m, in line with
expectations and reflecting continuing investment in key
development, regulatory and commercialisation activities (H1 FY
2019: $2.5m)
Post-period end developments
-- CLIA Certificate of Registration received to initiate
commercial testing for newly established commercial laboratory in
Utah
-- Mount Sinai electronic medical record (EMR) system
integration initiated for KidneyIntelX (TM)
-- Possible spin-out and admission to AIM of FractalDx under consideration
Commenting on the outlook for RenalytixAI, Julian Baines,
Non-executive Chairman of Renalytix said:
"Our Company continues to execute on key milestones that we
believe will provide a strong foundation for market adoption of
KidneyIntelX (TM) and sustainable growth. The environment and
timing for the anticipated national roll-out in 2020 is supportive,
as combating kidney disease in large patient populations has become
a top priority for governments, private payors and healthcare
providers alike. Live operations with our launch partner, Mount
Sinai Health System, are on schedule for the second quarter of this
calendar year and, if successful, will help validate our
business-to-business partnership model for deployment at other
major health care providers."
For further information, please contact:
Renalytix AI plc www.renalytixai.com
James McCullough, CEO Via Walbrook PR
Stifel (Nominated Adviser & Joint Broker) Tel: 020 7710 7600
Alex Price / Jonathan Senior / Ben Maddison
N+1 Singer (Joint Broker) Tel: 020 7496 3000
Aubrey Powell / George Tzimas (Corporate Finance)
Tom Salvesen (Corporate Broking)
Walbrook PR Limited Tel: 020 7933 8780 or renalytix@walbrookpr.com
Paul McManus / Lianne Cawthorne Mob: 07980 541 893 / 07584 391
303
The person responsible for this announcement is James
McCullough, CEO of RenalytixAI.
About Kidney Disease
Kidney disease is now recognised as a public health epidemic
affecting over 850 million people globally. The Centers for Disease
Control and Prevention (CDC) estimates that 15% of US adults, or 37
million people, currently have chronic kidney disease (CKD).
Further, the CDC reports that 9 out of 10 adults with CKD do not
know they have it and 1 out of 2 people with very low kidney
function who are not on dialysis do not know they have CKD*. Kidney
disease is referred to as a "silent killer" because it often has no
symptoms and can go undetected until a very advanced stage. Each
year kidney disease kills more people than breast and prostate
cancer. Every day, 13 patients in the United States die while
waiting for a kidney transplant.
*
https://www.cdc.gov/kidneydisease/publications-resources/2019-national-facts.html
About RenalytixAI
RenalytixAI is a developer of clinical grade, artificial
intelligence-enabled in vitro diagnostic solutions for kidney
disease, one of the most common and costly chronic medical
conditions globally. The Company's products are being designed to
make significant improvements in kidney disease diagnosis,
transplant management, clinical care, and patient stratification
for drug clinical trials. For more information, visit
renalytixai.com
CHAIRMAN'S BUSINESS REVIEW
I am delighted to present the interim report for the six months
ended 31 December 2019 for Renalytix AI plc.
About RenalytixAI
RenalytixAI was created to develop clinical grade artificial
intelligence in vitro diagnostic solutions to address kidney
disease, one of the most common and costly chronic medical
conditions globally. The company was founded in early 2018 on the
back of research by leading nephrologists at the Icahn School of
Medicine at Mount Sinai ("Mount Sinai") and initially funded by EKF
Diagnostics Holdings plc ("EKF"). The Company was admitted to AIM,
a market of the London Stock Exchange, on 6 November 2018, and is
focused on product development and commercialisation preparations
for its two key products in the area of kidney disease:
KidneyIntelX (TM)
The Company's lead product, KidneyIntelX (TM), is a clinical
grade, artificial intelligence in vitro diagnostic ("AI-IVD")
solution. We believe KidneyIntelX(TM) is one, if not the first,
example of an artificial intelligence clinical solution with a
defined price and reimbursement code, capable of being paid for by
US health insurance system coverage. Further, we believe
KidneyIntelX(TM) will represent one, if not the first, regulated
AI-IVD products for use with patients if approved for commercial
use by regulators this year.
KidneyIntelX (TM) is designed to provide early identification of
Rapid Kidney Function Decline ("RKFD") and kidney failure in
chronic kidney disease ("CKD") patients with Type 2 diabetes and
patients of African ancestry. KidneyIntelX(TM) uses a
machine-learning algorithm that combines different sources of
predictive data including blood-based biomarkers and features from
a patient's electronic health record to generate a predictive risk
score. To date we have exceeded our own expectations in terms of
the time taken to reach key commercial milestones including product
performance validation, advancement of state and federal regulatory
process, national Medicare pricing, and private insurance payor
reimbursement process in the United States.
We believe this positive performance is bolstered in part
because of our potentially first-in-class AI-IVD product position,
a significant shift in government policy capped by the US
Presidential Executive Order on Advancing American Kidney Health in
July 2019, and the rising strategic priority of private payors and
healthcare providers to effectively treat kidney disease. The Board
is pleased with the broad-based support that KidneyIntelX (TM) is
attracting from leading clinicians and believes that
population-based adoption has strong potential to support a key
policy initiative to reduce the number of Americans developing
end-stage renal disease ("ESRD") by 25% by 2030. Our multi-centre
validation study data supports KidneyIntelX (TM) as a compelling
solution to drive earlier intervention in kidney disease, before a
patient reaches ESRD.
FractalDx
The Company's FractalDx technology portfolio of diagnostic and
prognostic products is based on extensive scientific research
findings published in leading clinical journals, in-licensed from
Mount Sinai in late 2018. The FractalDx technology is based
principally on sequencing biomarkers from a patient's blood using
widely available instrument platforms. The Company is actively
developing two products from the portfolio : a prognostic test
performed prior to transplant to predict which transplant
recipients are most at risk of acute rejection and a diagnostic
test for evidence of rejection of the transplanted kidney in
advance of any clinical symptoms. Both tests will be instrumental
in guiding patient care including immunosuppression therapy dosing
to mitigate the toxic side effects and damage to the transplanted
kidney due to excessive dosing.
Operational progress
In the six months ended 31 December 2019, the Company made
considerable progress in advancing KidneyIntelX(TM) through the
regulatory and reimbursement approval processes, and in its
preparations for potentially national scale commercial
operations.
Reimbursement
A distinct Common Procedural Terminology ("CPT") reimbursement
code 0105U became effective on 1 October 2019 and can be used to
report the use of KidneyIntelX (TM) testing services to private and
public payors throughout the United States for reimbursement. This
was followed by the release of the Final 2020 Clinical Laboratory
Fee Schedule ("CLFS") by the Centers for Medicare and Medicaid
Services ("CMS") which set a national price for KidneyIntelX(TM)at
$950 per reportable test result. This price became effective on 1
January 2020 and will remain in effect for a three-year term until
December 2022, after which Medicare pricing will be reset to the
prevailing average private market insurance reimbursement price
established.
We expect the inclusion of KidneyIntelX (TM) on CMS's CLFS to
help accelerate RenalytixAI's contracting efforts with private
insurance payors, as several large insurance plans in the United
States use Medicare's CLFS to determine test pricing. Based on this
development, RenalytixAI plans to expand the market focus for
KidneyIntelX (TM) to a US nationwide programme, with a significant
expansion in covered lives expected to take place beginning in
calendar year 2020 and extending through 2021.
We were also pleased to announce the first positive private
insurance payor coverage determination for KidneyIntelX (TM). In
October 2019, Capital District Physicians' Health Plan, Inc.
("CDPHP"), a physician-led health insurance payor, adopted coverage
determination policies that will provide KidneyIntelX (TM) for
qualified CDPHP members who have Type 2 diabetes and CKD, or
diabetic kidney disease ("DKD"). In the United States,
approximately 12 million people currently have DKD. Our goal is to
work with additional insurance payors and healthcare providers to
expand coverage determinations for KidneyIntelX(TM). In addition,
the submission process to attain Medicare coverage determination
for KidneyIntelX(TM) at $950 per reportable test result on CPT Code
0105U has been initiated under the Molecular Diagnostics Services
("MolDx") programme. A Medicare coverage determination is expected
in the first half of calendar year 2021.
Regulatory
I am pleased to report that both the US federal and state
regulatory review processes for KidneyIntelX (TM) continue on
track, in-line with our previous announcements. Engagement and
progress with the US Food and Drug Administration on its review of
KidneyIntelX(TM) under the Breakthrough Device designation granted
in May 2019 continues in line with our expectations.
In January 2020, we announced that our newly established
commercial laboratory operation in Salt Lake City, Utah received a
Clinical Laboratory Improvement Amendments ("CLIA") Certificate of
Registration, allowing the laboratory to begin patient testing
effective immediately. The Salt Lake City laboratory facility
supports the delivery of multiple elements in the Company's 2020
commercial strategy plan, including the scaling-up of test volumes,
optimising sample processing costs and helping to accelerate payor
coverage determinations.
Following receipt of the CLIA Certificate of Registration we are
now beginning the process of requesting a Local Coverage
Determination ("LCD") from Noridian Healthcare Solutions, the
regional Medicare Administrative Contractor ("MAC") responsible for
services performed in laboratories located in the State of Utah.
Once submitted, review of the LCD request is expected to take
approximately 12 months and once granted it applies to payment for
KidneyIntelX (TM) tests run in any laboratory located in the
regions that follow MolDx determinations, including the Utah
laboratory regardless of where the sample is collected in the
United States. Such a determination would be in addition to both
coverage determination policies already adopted by insurance payor
CDPHP and any further coverage determinations the Company may
secure from public and private insurance payors during 2020 and
beyond.
As previously announced, five states require a separate
out-of-state license before RenalytixAI can provide testing
services for their residents: California, Maryland, New York,
Pennsylvania and Rhode Island. RenalytixAI initiated the
application process with New York in December 2019. The initial
in-person review of the KidneyIntelX(TM) testing service, looking
at supporting laboratory systems and processes, was completed by
the New York State Department of Health in January 2020. We intend
to initiate the application process for the remaining four states
in the first half of calendar year 2020.
Patient studies
We have now completed our expanded multi-centre clinical
validation study for patients with DKD with positive results
consistent with the KidneyIntelX (TM) interim results announced on
9 July 2019. These study results were submitted for peer-reviewed
publication in February 2020 and are expected to be published in
the second quarter of calendar year 2020.
During the period, a collaboration study was completed with
University Medical Center Groningen ("UMCG"), Netherlands, to
determine how effectively KidneyIntelX (TM) identifies those
patients experiencing rapid kidney function decline and patients
who eventually progressed to kidney failure and/or dialysis. The
study included 3,500 patients across multiple time points with over
9,000 samples analysed. The findings are currently being evaluated
and are expected to be submitted for presentation at the American
Society of Nephrology Kidney Week, October 2020 in Denver, Colorado
https://www.asn-online.org/education/kidneyweek/ .
Due to earlier insurance payor and healthcare system interest
than initially expected, we are now in the process of redesigning
the planned KidneyIntelX(TM) utility study away from the 5,000
patient configuration originally envisaged at the time of our AIM
admission to a more focused study programme aimed at evaluating
KidneyIntelX (TM) in specific patient populations, with payment
coverage agreed under partnership arrangements. We now expect that
the majority of the patient testing will be covered by insurance
and other third-party funding. This approach is targeted to achieve
wider coverage and reimbursement and is aligned with our
partnership-based business model, but will also result in
considerable cost savings for the Company.
Key leadership appointments
We continue to ensure that management and our Board contains the
right mix of skills to help deliver commercial success for our
KidneyIntelX(TM) programme with an emphasis on leading clinical
input. In October 2019, we appointed Dr. Chirag Parikh, Director of
the Division of Nephrology and the Ronald Peterson Professor of
Medicine at the Johns Hopkins School of Medicine, and the Chairman
of the Company's CKD Advisory Board, as an independent
Non-Executive Director. In July 2019, we announced the executive
management appointment of industry veteran Thomas McLain as
President and Chief Commercial Officer.
In addition, we have moved steadily to fill key operating
positions to support commercial roll-out at scale, including hiring
a Vice President of Market Access (commercial insurance
reimbursement), a Head of Clinical Laboratory Operations, a Head of
Product Management & Design, a Director of Clinical Trials, and
a Director of Quality Assurance.
Intellectual Property
In the period, the US Patent and Trademark Office allowed claims
extending the use of sTNFR1 (a blood-based biomarker) to all
patients with diabetes to determine an increased risk of developing
progressive kidney disease or kidney failure. Post period-end, we
have also concluded further exclusive in- licensing to patent
applications for core algorithms used in our KidneyIntelX (TM) , a
potentially first-in-class AI-IVD product.
We continue to build out our intellectual property portfolio and
are actively evaluating in-licensing opportunities that will
enhance our competitive product positioning.
FractalDx
The Company continues to evaluate its plans for FractalDx where
it has identified two initial diagnostic products designed to
address key unmet needs in kidney transplant. The first is a
prognostic test performed prior to transplant to predict which
transplant recipients are most at risk of acute rejection.. This
test will be instrumental in guiding patient care including for
immunosuppression therapy dosing to mitigate the toxic side effects
and damage to the transplanted kidney due to excessive dosing. The
second is a diagnostic test for evidence of rejection of the
transplanted kidney in advance of any clinical symptoms. The
results of this test can also provide valuable information on
immune-suppression therapy and, notably, key information can be
provided to a transplant clinician without the need for an invasive
kidney biopsy, the analysis of which, using current techniques,
misses approximately 20% of underlying rejections, which contribute
to kidney injury and loss.
Improving transplant outcomes and post-transplant survival rates
is also an important component of meeting objectives under the US
Presidential Executive Order on Advancing American Kidney Health.
Currently, 34% of kidney transplant recipients experience graft
loss and rejection in the ten years post-transplant (source: Hart
et al., OPTN/SRTR 2019 Annual Data Report: Kidney ) , which
FractalDx products seek to reduce. Opportunities for the FractalDx
portfolio continue to be assessed with input from our Transplant
Advisory Board, chaired by Professor Barbara Murphy, MD, Murray M.
Rosenberg Professor of Medicine, Chair of the Department of
Medicine and Dean for Clinical Integration & Population Health
at Mount Sinai Health Systems. The FractalDx products are supported
by a significant body of clinical evidence, with key papers
available at the following link:
https://renalytixai.com/investors/studies-supporting-utility-and-impact-of-fractaldx
The Board is currently considering options for a possible
spin-out and admission to AIM of FractalDX. Such a spin-out
transaction could provide the opportunity to secure separate
financial resources for the FractalDx portfolio, with the goal of
enabling accelerated development of FractalDx products and
achievement of commercial milestones. A spin-out transaction could
also allow RenalytixAI's shareholders to benefit from both the
pure-play value of the FractalDx portfolio of transplant products
and the standalone value of KidneyIntelX(TM) as it progresses
through its own key milestones over the next 12 months and
beyond.
These considerations are at an early stage and there can be no
guarantee that any spin-out transaction will be completed. Further
updates will be provided in due course, as appropriate.
Financial review
The results presented cover the six-month period from 1 July
2019 to 31 December 2019 ("H1 FY20"). The Group's presentational
currency is the United States Dollar.
Income statement
Revenue
In H1 FY20, $0.1m in revenue was generated through the sale of
assay materials in support of an unaffiliated study, of which
$0.02m was booked as cost of goods sold, yielding a gross margin of
just under $0.1m. The Group expects commercial testing sales to
begin ramp-up in the second quarter of calendar year 2020.
Administrative costs
In H1 FY20, administrative expenses totalled $4.5m (H1 FY19:
$2.9m). The major items of expenditure were general and
administrative expenses of $4.2m (H1 FY19: $0.7m) which included
$1.9m in employee-related costs and stock-based compensation, and
$1.1m in subcontractors, legal, accounting, and other professional
fees. Depreciation and amortization expense totalled $0.6m for the
period. There was an offsetting foreign exchange gain of $0.1m.
Figures from H1 FY19 for the above sub-categories were de minimis
and therefore do not provide meaningful comparative data. Increases
in labour, subcontractor and other expense reflect implementation
of growth plans outlined during the Company's recent fundraising,
and include development of laboratory operations and the hiring of
key positions, including our president and chief commercial officer
and head of product management and design control.
Finance income/costs
Finance income of $0.1m during H1 FY20 (H2 FY19: $0.02m expense)
relates to interest earned on short-term investments.
Net loss
Net loss after tax during H1 FY20 of $3.8m (H2 FY19: $2.5m), is
in line with expectations. Excluding share-based payments,
depreciation, amortisation and deferred tax, H1 FY20 net loss was
$3.2m (H2 FY19: $2.0m).
Balance sheet
At 31 December 2019, the Company held $42.5m in total assets (31
December 2018: $31.3m), and shareholders' equity totalled $41.2m
(31 December 2018: $30.5m).
Inventory
During the period, the Company purchased $0.4m of consumable
assay materials to be used in the processing of tests to be sold
(no inventory on hand prior to the interim period).
Fixed assets
$0.5m in laboratory equipment was added during the period. At 31
December 2019, the Company held $0.7m in net book value of
equipment (31 December 2018: $0.4m).
Intangible assets
$18.8m net book value of intangible assets held at 31 December
2019 (31 December 2018: $17.2m) includes payments made primarily to
Mount Sinai for license and patent costs for the intellectual
property underlying KidneyIntelX (TM), as well as assays pertaining
to kidney transplant, amounts capitalised as development costs, and
also intangible assets representing the value of the biomarker
business purchased (in exchange for ordinary shares in the Company)
from EKF.
Deferred tax
At 31 December 2019, a deferred tax asset of $1.6m had been
estimated (31 December 2018: $0.4m) based on the accumulated tax
losses in the US.
Cash and equivalents
The Group had cash on hand at 31 December 2019 of $20.8m (31
December 2018: $13.1m). Cash and equivalents are held in several
deposit accounts in the US ($9.4m) and UK ($3.5m), as well as in US
Treasury Bills ($7.9m) at 31 December 2019. Our expenditure plans
remain sufficiently adaptable to align with available
resources.
Borrowings
The Group has no long-term debt outstanding at 31 December
2019.
Capitalisation
In July 2019, the Company completed a follow-on placing of new
ordinary shares, raising net proceeds of $16.1m after fees and
related charges. The Company was admitted to trading on AIM in
November 2018 and completed an associated equity financing of
$26.8m net of fees and related charges.
Future developments and outlook
Ahead of our expected commercial launch into the Mount Sinai
Health System in the second quarter of calendar year 2020, we have
now initiated the final phase of deep integration with Mount
Sinai's outpatient EMR. The KidneyIntelX(TM) live software
integration into the Mount Sinai EMR is expected to be complete in
the first quarter of calendar year 2020, with full deployment to
enable seamless test ordering, secure data extraction and
integration of reports back into the EMR expected ahead of
anticipated launch. Live KidneyIntelX(TM) EMR integration will
uniquely enable large volumes of patient data to be securely
extracted and combined with biomarker results for processing by the
KidneyIntelX(TM) machine-learning algorithm. Subsequent billable
risk-score reporting will now be enabled for electronic
transmission through the EMR back to treating clinicians to
potentially improve care processes and help improve patient
outcomes.
Live integration with a major healthcare system such as Mount
Sinai is a core part of our business-to-business market strategy
and allows KidneyIntelX (TM) to be deployed to larger scale
populations of patients in a concentrated effort of human and
capital resources. Most importantly, our business-to-business
integrated partnership model creates the foundation for a long-term
commercial relationship that leverages KidneyIntelX(TM) to provide
appropriate clinical support to target populations through the
course initial risk assessment, care pathway optimization,
escalation of treatment and long-term management.
We believe successful implementation with Mount Sinai will help
validate our business model approach to combating kidney disease
that can be replicated in large population medical centers across
the United States and into the United Kingdom, Europe and other
territories throughout the world. In 2020, we are continuing to
extend our commercial discussions with additional large healthcare
providers, insurance payors and strategic partners for further
deployment of KidneyIntelX (TM) to provide precision medicine
stratification for at-risk DKD populations in the United
States.
We continue to believe that the macro environment for kidney
disease has undergone disruptive positive change in the past year.
Our own market-based experience has suggested an increasing level
of urgency from large medical stakeholders to improve diagnosis and
prognosis in earlier stages of kidney disease (stages 1, 2 and 3)
for better health economics and patient outcomes.
The Executive Order signed by the President of the United States
of America in July 2019, Advancing American Kidney Health, marked
the launch of a new initiative to improve the lives of Americans
suffering from kidney disease and outlined the magnitude of the
problem, underscoring the significant need for our solutions. As
stated in the order, "Approximately 37 million Americans have
chronic kidney disease and more than 726,000 have ESRD (end-stage
renal disease). More than 100,000 Americans begin dialysis each
year to treat ESRD. Twenty percent die within a year; fifty percent
die within 5 years. Currently, nearly 100,000 Americans are on the
waiting list to receive a kidney transplant."
We remain confident that our strategic approach and technology
are positioned to bring the predictive power of artificial
intelligence and precision diagnostics to the war on kidney disease
to improve patients' lives and control health care costs
globally.
Julian Baines
Non-Executive Chairman
3 March 2020
CONSOLIDATED INCOME STATEMENT
FOR THE 6 MONTHSED 31 DECEMBER
2019
Unaudited
Unaudited
6 months 6 months Audited
ended 31 ended 31 Period
December December ended 30
2019 2018 June 2019
$'000 $'000 $'000
Revenue 105 - -
Cost of (20) - -
sales
----------------------- --------------------------- ---------------------------
Gross 85 - -
profit
Administrative
expenses (4,548) (2,863) (6,955)
----------------------- --------------------------- ---------------------------
Operating loss (4,463) (2,863) (6,955)
Net finance
income/(cost) 70 (20) 19
----------------------- --------------------------- ---------------------------
Loss before
tax (4,393) (2,883) (6,936)
Note
Taxation 4 626 366 959
----------------------- --------------------------- ---------------------------
Loss for the
period (3,767) (2,517) (5,977)
======================= =========================== ===========================
Unaudited Unaudited
6 months 6 months Audited
ended 31 ended 31 Period
December December ended 30
2019 2018 June 2019
$ $ $
Loss per Ordinary share from continuing operations
Basic and Note
diluted 5 (0.06) (0.09) (0.16)
======================= =========================== ===========================
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
FOR THE 6 MONTHSED 31
DECEMBER
2019
Unaudited Unaudited
6 months 6 months
ended ended Audited
31 31
December December Period ended
2019 2018 30 June
2019
$'000 $'000 $'000
Loss for the period -
continuing
operations (3,767) (2,517) (5,977)
---------------------- ------------------- -------------------
Other comprehensive income:
Items that may be subsequently
reclassified
to profit or loss
Current translation differences 1 (111) (595)
---------------------- ------------------- -------------------
Other comprehensive loss for
the period 1 (111) (595)
---------------------- ------------------- -------------------
Total comprehensive loss for
the period (3,766) (2,628) (6,572)
---------------------- ------------------- -------------------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER
2019
Unaudited Unaudited
as at as at Audited
31 31 as
December December at 30
June
2019 2018 2019
Notes $'000 $'000 $'000
Assets
Non-current assets
Property, plant
and
equipment 6 722 410 278
Intangible assets 7 18,755 17,236 18,287
Deferred tax
assets 1,585 433 959
Total non-current
assets 21,062 18,079 19,524
--------------------- ---------------------- ----------------------
Current Assets
Security deposits 76 - 49
Trade and other - 59 -
receivables
Inventory 435 - -
Prepaid and other
current
assets 115 107 61
Cash and cash
equivalents 20,792 13,095 9,288
Total current
assets 21,418 13,261 9,398
--------------------- ---------------------- ----------------------
Total assets 42,480 31,340 28,922
===================== ====================== ======================
Equity
attributable
to owners
of the parent
Share capital 192 171 175
Share premium 50,138 33,247 34,032
Share-based
payment
reserve 1,184 88 532
Foreign currency
reserves (594) (98) (595)
Retained earnings (9,744) (2,877) (5,977)
Total equity 41,176 30,531 28,167
--------------------- ---------------------- ----------------------
Liabilities
Current
liabilities
Trade and other
payables 1,304 809 755
Total liabilities 1,304 809 755
--------------------- ---------------------- ----------------------
Total equity and
liabilities 42,480 31,340 28,922
===================== ====================== ======================
CONSOLIDATED
STATEMENT OF
CASH
FLOWS
FOR THE 6 MONTHSED 31
DECEMBER
2019
Unaudited Unaudited
6 months 6 months Audited
as
ended 31 ended 31 period
December December ended
2019 2018 June 2019
$'000 $'000 $'000
Cash flow from
operating
activities
Loss before
income tax (4,393) (2,883) (6,936)
Adjustments for
-Depreciation 27 15 31
-Amortisation and
impairment
charges 524 810 1,094
-Net finance
(income)/costs (70) 20 -
-Share-based
payments 652 88 532
Changes in
working capital
-Trade and other
receivables - (41) 218
-Inventory (435) - -
-Prepaid assets
and other
current
assets (54) (107) (61)
-Security
deposits (27) - (49)
-Trade and other
payables 550 688 755
------------------------------ ------------------------------ ------------------------------
Cash used in
operations (3,226) (1,410) (4,416)
Interest
received/(paid) 70 (20) -
------------------------------ ------------------------------ ------------------------------
Net cash used in
operating
activities (3,156) (1,430) (4,416)
------------------------------ ------------------------------ ------------------------------
Cash flow from
investing
activities
Purchase of
property, plant
and
equipment (PPE) (471) (425) (308)
Purchase of
intangibles (992) (11,476) (12,741)
------------------------------
Net cash used in
investing
activities (1,463) (11,901) (13,049)
------------------------------ ------------------------------ ------------------------------
Cash flow from
financing
activities
Issue of shares
(net of issue
costs) 16,123 26,782 26,753
Proceeds from
loans - - 438
Repayment of
loans - (438) (438)
------------------------------ ------------------------------ ------------------------------
Net cash
generated from
financing
activities 16,123 26,344 26,753
------------------------------ ------------------------------ ------------------------------
Net increase in
cash and cash
equivalents 11,504 13,013 9,288
Cash and cash
equivalents at
beginning
of period 9,288 82 -
Cash and cash
equivalents at
end
period 20,792 13,095 9,288
============================== ============================== ==============================
Substantial non-cash items include the acquisition of the intangible
assets in return for the issue of Ordinary shares, applicable to the
period ended 30 June 2019, and amortisation of intangible assets.
CONSOLIDATED STATEMENT OF CHANGES
IN EQUITY
FOR THE 6 MONTHSED 31 DECEMBER
2019 Share-based
Foreign
Share Share payment Currency Retained Total
Capital Premium reserve Reserve earnings equity
$'000 $'000 $'000 $'000 $'000 $'000
At 1 July 2018 66 - - 13 (360) (281)
Comprehensive
income
Loss for the
period - - - - (2,517) (2,517)
Other
comprehensive
income
Currency
translation
differences - - - (111) - (111)
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------
Total
comprehensive
income - - - (111) (2,517) (2,628)
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------
Transactions
with owners
Issue of shares 105 34,730 - - - 34,835
Less issue
costs - (1,483) - - - (1,483)
Share-based
payments - - 88 - - 88
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------
Total
contributions
by owners 105 33,247 88 - - 33,440
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------
At 31 December
2018 171 33,247 88 (98) (2,877) 30,531
==================== ==================== ==================== ==================== ==================== ===================
Comprehensive
income
Loss for the
period - - - - (3,100) (3,100)
Other
comprehensive
income
Currency
translation
differences - - - (497) - (497)
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------
Total
comprehensive
income - - - (497) (3,100) (3,597)
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------
Transactions
with owners
Issue of shares 4 792 - - - 796
Less issue
costs - (7) - - - (7)
Share-based
payments - - 444 - - 444
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------
Total
contributions
by owners 4 785 444 - - 1,233
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------
At 30 June 2019 175 34,032 532 (595) (5,977) 28,167
==================== ==================== ==================== ==================== ==================== ===================
Comprehensive
income
Loss for the
period - - - - (3,767) (3,767)
Other
comprehensive
income
Currency
translation
differences - - - 1 - 1
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------
Total
comprehensive
income - - - 1 (3,767) (3,766)
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------
Transactions
with owners
Issue of shares 17 17,090 - - - 17,107
Less issue
costs - (984) - - - (984)
Share-based
payments - - 652 - - 652
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------
Total
contributions
by owners 17 16,106 652 - - 16,775
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------
At 31 December
2019 192 50,138 1,184 (594) (9,744) 41,176
==================== ==================== ==================== ==================== ==================== ===================
NOTES FORMING PART OF THE INTERIM FINANCIAL STATEMENTS
1. General information and basis of presentation
Renalytix AI plc is a public limited company incorporated in the
United Kingdom (Registration Number 11257655). The address of the
registered office is Avon House, 19 Stanwell Road, Penarth, CF64
2EZ. The Company's shares are traded on the AIM market of the
London Stock Exchange.
The principal activity of the Company and its subsidiary
(together "the Group") is as a developer of artificial
intelligence-enabled diagnostics for kidney disease.
The financial information in these interim results is that of
the holding company and its subsidiary. It has been prepared in
accordance with the recognition and measurement requirements of
International Financial Reporting Standards as adopted for use in
the EU (IFRSs), IFRS IC interpretations, and the Companies Act 2006
applicable to companies reporting under IFRS. The accounting
policies applied by the Group in this financial information are the
same as those applied by the Group in its financial statements for
the period ended 30 June 2019 and which will form the basis of the
2019/20 financial statements except for a number of new and amended
standards which have become effective since the beginning of the
previous financial year. These new and amended standards are not
expected to materially affect the Group.
Certain statements in this announcement constitute
forward-looking statements. Any statement in this announcement that
is not a statement of historical fact including, without
limitation, those regarding the Company's future expectations,
operations, financial performance, financial condition and business
is a forward-looking statement. Such forward-looking statements are
subject to risks and uncertainties that may cause actual results to
differ materially. These risks and uncertainties include, amongst
other factors, changing economic, financial, business or other
market conditions. These and other factors could adversely affect
the outcome and financial effects of the plans and events described
in this announcement and the Company undertakes no obligation to
update its view of such risks and uncertainties or to update the
forward-looking statements contained herein. Nothing in this
announcement should be construed as a profit forecast.
The financial information presented herein does not constitute
full statutory accounts under Section 434 of the Companies Act 2006
and was not subject to a formal review by the auditors. The
financial information in respect of the period ended 30 June 2019
has been extracted from the statutory accounts which have been
delivered to the Registrar of Companies. The Group's Independent
Auditor's report on those accounts was unqualified, did not include
references to any matters to which the auditor drew attention by
way of emphasis without qualifying their report and did not contain
a statement under section 498(2) or 498(3) of the Companies Act
2006. The financial information for the half years ended 31
December 2019 and 31 December 2018 is unaudited and the period to
30 June 2019 is audited.
These interim accounts have not been prepared in accordance with
IAS 34.
2. Significant accounting policies
Going concern
The Group meets its day-to-day working capital requirements
through the use of cash reserves.
The Directors have considered the applicability of the going
concern basis in the preparation of these interim financial
statements. This included the review of internal budgets and
financial results which show, taking into account reasonably
probable changes in financial performance, that the Group should be
able to operate within the level of its current funding
arrangements.
The Directors believe that the Company and the Group have
adequate resources to continue in operation for the foreseeable
future. For this reason they have adopted the going concern basis
in the preparation of the interim financial statements.
Basis of consolidation
The consolidated financial statements incorporate the financial
statements of the Company and its subsidiary undertaking.
Subsidiaries are all entities over which the Group has the power to
govern their financial and operating policies generally
accompanying a shareholding of more than fifty per cent of the
voting rights. The existence and effect of potential voting rights
that are currently exercisable or convertible are considered when
assessing whether the Group controls another entity.
Subsidiaries are fully consolidated from the date on which
control is transferred to the Group. They are de-consolidated from
the date that control ceases.
The Group uses the acquisition method of accounting to account
for business combinations. The consideration transferred for the
acquisition of a subsidiary is the fair values of the assets
transferred, the liabilities incurred and the equity interests
issued by the Group. The consideration transferred includes the
fair value of any asset or liability resulting from a contingent
consideration agreement. Acquisition related costs are expensed as
incurred. Identifiable assets acquired and liabilities and
contingent liabilities assumed in a business combination are
measured initially at their fair values at the acquisition date. On
an acquisition by acquisition basis, the Group recognises any
non-controlling interest in the acquiree either at fair value or at
the non-controlling interest's proportionate share of the
acquiree's net assets.
The excess of the consideration transferred, the amount of any
non-controlling interest in the acquiree and the acquisition date
fair value of any previous equity interest in the acquiree over the
fair value of the Group's share of the identifiable net assets
acquired is recorded as goodwill. If this is less than the fair
value of the net assets of the subsidiary acquired in the case of a
bargain purchase, the difference is recognised directly in the
income statement.
Inter-Company transactions, balances and unrealised gains on
transactions between Group companies are eliminated. Unrealised
gains and losses are also eliminated. Accounting policies of
subsidiaries have been changed where necessary to ensure
consistency with the policies adopted by the Group.
Foreign currency translation
(a) Functional and presentational currency
Items included in the financial statements of each of the
Group's entities are measured using the currency of the primary
economic environment in which the entity operates (the functional
currency). The consolidated financial statements are presented in
United States Dollars, which is the Group's presentational
currency. The functional currency of the Parent Company is GB
Pounds.
(b) Transactions and balances
Foreign currency transactions are translated into the functional
currency using the exchange rates prevailing at the dates of the
transactions where items are re-measured. Foreign exchange gains
and losses resulting from the settlement of such transactions and
from the translation at year-end exchange rates of monetary assets
and liabilities denominated in foreign currencies are recognised in
the income statement within 'administrative expenses'.
(c) Group companies
The results and financial position of all the Group entities
that have a functional currency different from the presentational
currency are translated into the presentational currency as
follows:
-- assets and liabilities for each balance sheet presented are
translated at the closing rate at the date of that balance
sheet;
-- income and expenses for each income statement are translated
at average exchange rates; and
-- all resulting exchange differences are recognised in other comprehensive income.
On consolidation, exchange differences arising from the
translation of the net investment in foreign operations are taken
to other comprehensive income. When a foreign operation is
partially disposed of or sold, exchange differences that were
recorded in equity are recognised in the income statement as part
of the gain or loss on sale.
Goodwill and fair value adjustments arising on the acquisition
of a foreign entity are treated as assets and liabilities of the
foreign entity and translated at the closing rate.
Segmental reporting
Operating segments are reported in a manner consistent with the
internal reporting provided to the chief operating decision-maker.
The chief operating decision-maker, who is responsible for
allocating resources and assessing performance of the operating
segments, has been identified as the Executive Directors who make
strategic decisions. At present the Directors consider the business
to operate in a single segment.
Property, plant and equipment
Property, plant and equipment are stated at historical cost less
accumulated depreciation and any provision for impairment.
Historical cost includes expenditure that is directly attributable
to the acquisition of the asset and bringing the asset to its
working condition for its intended use.
Subsequent costs are included in the asset's carrying amount or
recognised as a separate asset, as appropriate, only where it is
probable that future economic benefits associated with the asset
will flow to the Group and the cost of the asset can be measured
reliably. The carrying amount of the replaced part is derecognised.
All other repairs and maintenance are charged to the income
statement during the financial period in which they are
incurred.
Depreciation on assets is calculated using the straight-line
method to allocate their cost to their residual values over their
estimated useful lives, as follows:
Plant and machinery 20%
The assets' residual values and useful economic lives are
reviewed regularly, and adjusted if appropriate, at the end of each
reporting period.
An asset's carrying value is written down immediately to its
recoverable amount if the asset's carrying amount is greater than
its estimated recoverable amount.
Gains and losses on the disposal of assets are determined by
comparing the proceeds with the carrying amount and are recognised
in administration expenses in the income statement.
Intangible assets
(a) Trademarks, trade names and licences
Separately acquired trademarks and licences are shown at
historical cost. Trademarks and licences acquired in a business
combination are recognised at fair value at the acquisition date.
Trademarks and licences have a finite useful life and are carried
at cost less accumulated amortisation. Amortisation is calculated
using the straight-line method to allocate the cost of trademarks
and licences over the contractual licence period of 10 to 15 years
and is charged to administrative expenses in the income
statement.
(b) Development costs and trade secrets
Development costs have a finite useful life and are carried at
cost less accumulated amortisation.
Expenditure incurred on the development of new or substantially
improved products or processes is capitalised, provided that the
related project satisfies the criteria for capitalisation,
including the project's technical feasibility and likely commercial
benefit. All other research and development costs are expensed to
profit or loss as incurred.
Development costs are amortised over the estimated useful life
of the products with which they are associated. Amortisation
commences when a new product is in commercial production. The
amortisation is charged to administrative expenses in the income
statement. The estimated remaining useful lives of development
costs are reviewed at least on an annual basis.
The carrying value of capitalised development costs is reviewed
for potential impairment at least annually and if a product becomes
unviable and an impairment is identified the deferred development
costs are immediately charged to the income statement. Amortisation
has not yet commenced.
Trade secrets, including technical know-how, operating
procedures, methods and processes, are recognised at fair value at
the acquisition date. Trade secrets have a finite useful life and
are carried at cost less accumulated amortisation. Amortisation has
not yet commenced.
Impairment of non-financial assets
Assets that have an indefinite life or where amortisation has
not yet commenced are tested annually for impairment. Assets that
are subject to amortisation are reviewed for impairment whenever
events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognised for
the amount by which the carrying amount exceeds its recoverable
amount.
The recoverable amount is the higher of an asset's fair value
less costs to sell and value in use. 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 for which the estimates of future cash flows have not
been adjusted.
For the purposes of assessing impairment, assets are grouped at
the lowest levels for which there are separately identifiable cash
flows. Impairment losses recognised for cash-generating units, to
which goodwill has been allocated, are credited initially to the
carrying amount of goodwill. Any remaining impairment loss is
charged pro rata to the other assets in the cash-generating
unit.
Where an impairment loss subsequently reverses, the carrying
amount of the asset (cash-generating unit) is increased to the
revised estimate of its recoverable amount, but so that the
increased carrying amount does not exceed the carrying amount that
would have been determined had no impairment loss been recognised
for the asset (cash-generating unit) in the prior period. A
reversal of an impairment loss is recognised in the income
statement immediately. If goodwill is impaired however, no reversal
of the impairment is recognised in the financial statements.
Financial assets
Classification
The Company classifies its financial assets in the following
categories: loans and receivables at amortised cost and financial
assets at fair value through profit or loss. The classification
depends on the purpose for which the financial assets were acquired
and management determines the classification of its financial
assets at initial recognition.
(a) Loans and receivables
Financial assets are classified as at amortised cost only if
both of the following criteria are met: the asset is held within a
business model whose objective is to collect contractual cash
flows, and the contractual terms give rise to cash flows that are
solely payments of principal and interest. Loans and receivables
are non-derivative financial assets with fixed or determinable
payments that are not quoted on an active market. They are included
in current assets, except for maturities greater than 12 months
after the balance sheet date. These are classified as non-current
assets. The Company's loans and receivables comprise 'trade and
other receivables' and cash and cash equivalents in the balance
sheet.
(b) Financial assets at fair value through profit or loss
The Group classifies the following financial assets at fair
value through profit or loss (FVPL):
-- debt investments that do not qualify for measurement at
either amortised cost or fair value through Other Comprehensive
Income;
-- equity investments that are held for trading, and
-- equity investments for which the entity has not elected to
recognise fair value gains and losses through Other Comprehensive
Income.
(c) Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive
income comprise equity securities that are not held for trading and
which the Group has irrevocably elected at initial recognition to
recognise in this category. The Group considers this category to be
more relevant for assets of this type.
Inventories
Inventories and work in progress are stated at the lower of cost
and net realisable value. Cost is calculated on a first in and
first out basis and includes direct costs and attributable
overheads, where appropriate. Net realisable value represents the
estimated selling price less all estimated costs of completion and
applicable selling costs. Where necessary, provision is made for
slow-moving and obsolete inventory. Inventory on consignment and
their related obligations are recognised in current assets and
payables respectively.
Cash and cash equivalents
Cash and short-term deposits in the balance sheet comprise cash
at bank and in hand and short- term deposits with an original
maturity of three months or less.
For the purposes of the consolidated cash flow statement, cash
and cash equivalents consist of cash and short-term deposits as
defined above.
Share capital
Ordinary Shares are classified as equity. Proceeds in excess of
the nominal value of shares issued are allocated to the share
premium account and are also classified as equity. Incremental
costs directly attributable to the issue of new Ordinary Shares or
options are deducted from the share premium account.
Other reserves - equity
The share-based payment reserve is used to recognise the fair
value of equity settled share-based payment transactions.
Foreign currency reserve is used to record the exchange
differences on translation of entities in the Group which have a
functional currency different to the presentation currency.
Retained earnings includes all current and prior period results
as disclosed in the income statement.
Trade and other payables
Trade payables are obligations to pay for goods or services that
have been acquired in the ordinary course of business from
suppliers. Accounts payable are classified as current liabilities
if payment is due within one year or less (or in the normal
operating cycle of the business if longer). If not, they are
presented as non-current liabilities. Trade payables are recognised
initially at fair value and subsequently measured at amortised cost
using the effective interest method.
Revenue
Revenue is accounted for in accordance with the principles of
IFRS 15.
Revenue for the sale of goods is measured at the fair value of
the consideration received or receivable and represents the
invoiced value for the sale of the goods net of sales taxes,
rebates and discounts. Revenue from the sale of goods is recognised
when control of the products has transferred which is when a Group
company has delivered products to the customer, the customer has
accepted delivery of the products and collectability of the related
receivables is reasonably assured. A receivable is recognised when
the goods are delivered as this is the point in time that the
consideration is unconditional because only the passage of time is
required before the payment is due. Where contracts contain
multiple deliverables, and the volume of each deliverable can be
determined with reasonable certainty, then the transaction price
will be allocated to each performance obligation based on the
expected cost of each item.
Current and deferred income tax
Income tax comprises current and deferred tax. Tax is recognised
in the income statement, except to the extent that it relates to
items recognised in other comprehensive income where the associated
tax is also recognised in other comprehensive income.
The current income tax charge is calculated on the basis of the
tax laws enacted or substantively enacted at the balance sheet date
in the countries where the Company and its subsidiary operate and
generate taxable income. Management evaluates positions taken in
tax returns with respect to situations in which applicable tax
regulation is subject to interpretation and establishes provisions
where appropriate on the basis of amounts expected to be paid to
the tax authorities.
Deferred tax is recognised, using the liability method, on all
temporary differences at the balance sheet date between the tax
bases of assets and liabilities and their carrying amounts for
financial reporting purposes. Deferred tax liabilities are
recognised in respect of all temporary differences except where the
deferred tax liability arises from the initial recognition of
goodwill in business combinations.
Deferred tax assets are recognised for all deductible temporary
differences, carry-forward of unused tax assets and tax losses, to
the extent that they are regarded as recoverable. They are regarded
as recoverable where, on the basis of available evidence, there
will be sufficient taxable profits against which the future
reversal of the underlying temporary differences can be
deducted.
The carrying value of the amount of deferred tax assets is
reviewed at each balance sheet date and reduced to the extent that
it is no longer probable that sufficient taxable profit will be
available to allow all, or part, of the tax asset to be
utilised.
Deferred tax assets and liabilities are measured at the tax
rates that are expected to apply to the year when the asset is
realised or the liability is settled, based on the tax rates (and
tax laws) that have been substantively enacted at the balance sheet
date.
Deferred income tax assets and liabilities are offset when there
is a legally enforceable right to offset current tax assets against
current tax liabilities and when the deferred income tax assets and
liabilities relate to income taxes levied by the same taxation
authority on either the taxable entity or different taxable
entities where there is an intention to settle the balances on a
net basis.
Employee benefits
(a) Pension obligations
The Group makes contributions to defined contribution pension
plans. A defined contribution plan is a pension plan under which
the Group pays fixed contributions into a separate entity with the
pension cost charged to the income statement as incurred. The Group
has no further obligations once the contributions have been
paid.
(b) Share-based compensation
The Group operates an equity-settled, share-based compensation
plan, under which the Group receives services from employees and
others as consideration for equity instruments of the Group.
Equity-settled share-based payments are measured at fair value at
the date of grant and are expensed over the vesting period based on
the number of instruments that are expected to vest. For plans
where vesting conditions are based on share price targets, the fair
value at the date of grant reflects these conditions. Where
applicable the Group recognises the impact of revisions to original
estimates in the income statement, with a corresponding adjustment
to equity for equity-settled schemes. Fair values are measured
using appropriate valuation models, taking into account the terms
and conditions of the awards.
When the share-based payment awards are exercised, the Company
issues new shares. The proceeds received net of any directly
attributable transaction costs are credited to share capital
(nominal value) and share premium.
National insurance on share options
To the extent that the share price at the balance sheet date is
greater than the exercise price on options granted to UK citizens
under unapproved share-based payment compensation schemes,
provision for any National Insurance Contributions has been based
on the prevailing rate of National Insurance. The provision is
accrued over the performance period attaching to the award.
Interest income
Interest income is accrued on a time basis, by reference to the
principal outstanding and at the effective interest rate
applicable, which is the rate that exactly discounts estimated
future cash receipts through the expected life of the financial
asset to that asset's net carrying amount.
Exceptional items
These are items of an unusual or non-recurring nature incurred
by the Group and include transactional costs and one-off items
relating to business combinations, such as acquisition
expenses.
3. Segmental reporting
The Group operates as a single segment.
4. Income tax
Unaudited Unaudited Audited
6 months 6 months Period
ended ended Ended
31 December 31 December 30 June
2019 2018 2019
$'000 $'000 $'000
Deferred tax
Tax losses 626 366 959
------------------------- ------------------------- -------------------------
Total deferred
tax 626 366 959
------------------------- ------------------------- -------------------------
Income tax credit 626 366 959
========================= ========================= =========================
5. Earnings per share
Basic earnings per share is calculated by dividing the loss attributable
to equity holders of the parent by the weighted average number of ordinary
share in issue during the period.
The Company has one category of dilutive potential ordinary share,
being share options. The potential shares were not dilutive in the
period as the Group made a loss per share.
Unaudited Unaudited
6 6
months months Audited
ended 31 ended 31 Period
ended
December December 30 June
2019 2018 2019
$'000 $'000 $'000
Loss attributable to
owners
of the parent (3,767) (2,517) (5,977)
Weighted average number
of ordinary
share in issue 58,563,960 27,487,006 37,332,983
Cents Cents Cents
Basic and diluted
Loss per share (0.06) (0.09) (0.16)
========================= ========================= =========================
6. Property, plant and equipment
Group Fixtures
and
fittings
$'000
-----------------------------
Cost
At the beginning of period -
Additions 425
-----------------------------
At 31 December 2018 425
Transfer to intangible
assets (116)
-----------------------------
At 30 June 2019 309
Additions 471
-----------------------------
At 31 December 2019 780
-----------------------------
Depreciation
At beginning of period -
Charge for the period 15
-----------------------------
At 31 December 2018 15
Charge for the period 16
-----------------------------
At 30 June 2019 31
Charge for the period 27
-----------------------------
At 31 December 2019 58
-----------------------------
Net book value
31 December 2019 722
-----------------------------
30 June 2019 278
-----------------------------
31 December 2018 410
-----------------------------
7. Intangible
Assets
Group
Trademarks
trade names Trade Develop-
& licenses secrets ment costs Total
$'000 $'000 $'000 $'000
------------------------------ ----------------------------- ----------------------------- ------------------------------
Cost
At the - - - -
beginning of
period
Additions 10,979 6,570 497 18,046
------------------------------ ----------------------------- ----------------------------- ------------------------------
At 31 December
2018 10,979 6,570 497 18,046
Additions 18 74 1,243 1,335
Foreign
translation 5 (3) - 2
------------------------------ ----------------------------- ----------------------------- ------------------------------
At 30 June
2019 11,002 6,641 1,740 19,383
Additions - - 992 992
------------------------------ ----------------------------- ----------------------------- ------------------------------
At 31 December
2019 11,002 6,641 2,732 20,375
------------------------------ ----------------------------- ----------------------------- ------------------------------
Amortisation
At beginning - - - -
of period
Charge for the
period 810 - - 810
------------------------------ ----------------------------- ----------------------------- ------------------------------
At 31 December
2018 810 - - 810
------------------------------ ----------------------------- ----------------------------- ------------------------------
Charge for the
period 285 - - 285
Foreign
translation 1 - - 1
------------------------------ ----------------------------- ----------------------------- ------------------------------
At 30 June
2019 1,096 - - 1,096
------------------------------ ----------------------------- ----------------------------- ------------------------------
Charge for the
period 524 - - 524
------------------------------ ----------------------------- ----------------------------- ------------------------------
At 31 December
2019 1,620 - - 1,620
------------------------------ ----------------------------- ----------------------------- ------------------------------
Net book value
31 December
2019 9,382 6,641 2,732 18,755
------------------------------ ----------------------------- ----------------------------- ------------------------------
30 June 2019 9,906 6,641 1,740 18,287
------------------------------ ----------------------------- ----------------------------- ------------------------------
31 December
2018 10,169 6,570 497 17,236
------------------------------ ----------------------------- ----------------------------- ------------------------------
8. Dividends
No dividends to shareholders of the holding company were provided
or paid during the six months to 31 December 2019 (six months to 31
December 2018 and period to 30 June 2019: both nil). The Board's policy
is to enhance shareholder value mainly through the growth of the Group,
which is currently in the early stages of its development. The Board
will however consider the payment of dividends if and when appropriate.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR KKBBPBBKBNNK
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