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PACIFIC EDGE LIMITED — Interim / Quarterly Report 2022
Nov 24, 2021
65539_rns_2021-11-24_013cc0bd-8230-4979-a7da-651d28cdedaf.pdf
Interim / Quarterly Report
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Company Announcement 25 November 2021
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PACIFIC EDGE RESULTS FOR SIX MONTHS ENDED 30 SEPTEMBER 2021
Pacific Edge reports continued strong revenue growth despite continuing impact of Covid-19
Unaudited results for the six months ended 30 September 2021 (1H22)
Summary of performance for the period (% changes compared to prior comparative period (pcp)):
-
Total revenue increased 66% to $6.7m
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Operating revenue from test sales increased 62% to $5.4m
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Total Laboratory Throughput increased 62% to 11,136 tests
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Commercial Test volumes increased 64% to 9,192 tests
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Cash Receipts from Customers increased 110% to $5.4m
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Total operating expenses increased 41% on pcp to $15.7m
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Net Loss After Tax increased 27% to $9.0m
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Net cash, cash equivalents and short-term deposits were $91.6m (which excludes the $23.5m raised in the Retail Offer completed in October 2021)
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Growth in the US sales force from 16 to 28 (+75%) and the addition of two new sales territories
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Publication of clinical evidence key to supporting use of multiple Cxbladder products and Pacific Edge’s Patient In-Home Sampling System (PIHSS)
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Conducted successful $103.5m capital raise and dual listed on ASX
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Well positioned to capitalise on commercial milestones as Covid-19 restrictions ease, with a strong balance sheet and scaled up operations in the U.S.
Cancer diagnostics business, Pacific Edge Limited (NZX/ASX: PEB) has reported continuing growth for the six months ended 30 September 2021 (1H22), with key performance metrics significantly ahead of the same time last year, driven by reimbursement milestones, increasing insurance coverage and adoption by urologists and healthcare organisations.
CEO of Pacific Edge, David Darling, commented: “The momentum seen in 2H21 has continued with growth in test volumes, sales and cash receipts. This is particularly pleasing given the resurgence in Covid-19 restrictions due to the spread of the Delta variant, which further restricted access to clinics and urologists for both patients and for our sales people in both the U.S. and New Zealand. As Covid-19 restrictions are lifted and access improves, we expect to see a positive impact on our business.
“With a restructured balance sheet and significant cash resources now in hand, we continue to focus on scaling up our commercial operations to accelerate our growth in the U.S. and other targeted markets. We continue to make good progress as we position our Cxbladder suite of tests as the diagnostic product of choice for urologists and patients. The clinical evidence supporting the outperformance of our products, growing endorsement by key opinion leaders and our first mover advantage all serve to provide a strong competitive advantage for our business.”
In particular, the recent clinical papers published in the leading Journal of Urology, highlight a pivotal shift in clinical utility from, firstly, an increase in clinical resolution from the combined use of multiple Cxbladder tests for each patient presenting with haematuria and, secondly, the gain in clinical utility from Pacific Edge’s PIHSS for
Company Announcement 25 November 2021
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management of patients outside the clinic. These publications are expected to provide added impetus to the adoption of Cxbladder by urologists and healthcare organisations.
1H FY22 Financial Result Summary
Total Revenue increased 66% to $6.7m and Operating Revenue from Cxbladder sales increased 62% on the prior comparative period (pcp) to $5.4m. This record result reflects the continued positive impact from the commercial milestones achieved in 1H21, particularly LCD inclusion for Cxbladder Monitor and Cxbladder Triage from 1 July 2020 as well as growing adoption and use by urologists and healthcare organisations.
Total Laboratory Throughput (TLT) increased 62% on pcp and 24% on the prior six month period (2H FY21) to 11,136 tests.
Commercial test volumes increased 64% on pcp and 24% on the prior six month period (2H FY21) to 9,192 tests, and accounted for 83% of TLT (up from 82% in FY21).
The U.S. market accounted for 81% of TLT, 81% of commercial test volumes and 93% of operating revenue. CMS related tests (Medicare and Medicare Advantage) accounted for 65% of total U.S. commercial test volumes. Cxbladder Detect and Cxbladder Monitor (the two Cxbladder tests included in the LCD) accounted for 95% of total U.S. commercial test volumes.
Cash receipts from customers increased 110% on pcp to $5.4m, reflecting the positive impact of cash reimbursement from the CMS and increased volumes.
Operating expenses increased 41% on pcp to $15.7m as the company invested for growth, and particularly the sales and marketing efforts in the US.
For the six month period, Pacific Edge reported a Net Loss After Tax of $9.0m, an increase of 27% on pcp.
The recent capital raise of $103.5m has significantly strengthened the Company’s balance sheet. As at 30 September 2021, net cash, cash equivalents and short term deposits were $91.6m (which excludes the $23.5m raised in the Retail Offer that was completed post-period end in October 2021).
Commercial Progress
The company continues to achieve commercial milestones as it progresses its global growth strategy. In particular, in 1H22, Pacific Edge reported:
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Growth in the US sales force from 16 to 28 (75%) and the addition of two new sales territories
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Commercial adoption of second Cxbladder product (Cxbladder Triage) by Kaiser Permanente
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Expansion of coverage in New Zealand, with Northland and Taranaki public healthcare providers (DHBs) adopting Cxbladder into use taking the total coverage to more than 70% of New Zealand’s population
Company Announcement 25 November 2021
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Acceptance of an important clinical paper outlining the significant increase in clinical resolution that can be achieved from using multiple Cxbladder products in the evaluation of a patient presenting to the clinic with haematuria
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Publication of real world lookback study in the U.S, highlighting the clinical utility of Cxbladder in a Covid19 setting for managing patients outside the clinic
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Analysis of results from Singapore study on-track for publication in early 2022. This will form the basis of Pacific Edge’s planned commercial rollout in Southeast Asia, which is expected to become a market of scale for Cxbladder over time similar to the U.S
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Dual listing on the ASX in September 2021
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Completion of successful $103.5 million capital raise to enable the company to capitalise on recent commercial milestones and to accelerate the execution of its global growth strategy in markets of scale
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In October 2021, announced the appointment of new CEO, Dr Peter Meintjes, who will commence in the role in January 2022.
Outlook
Pacific Edge has a positive outlook for FY22 and beyond and is well positioned to capitalise on the opportunities available to the company.
The U.S. market remains the primary focus and continued growth is expected once Covid-19 restrictions ease. The scaled up U.S. commercial operations provide the capacity and resource to drive growth opportunities and positive results from this investment are now starting to be seen. The U.S. sales team grew to 28 experienced sales representatives over the last year, with 30 sales reps expected to be operating by end-November.
The focus for FY22 is on growing the commercial adoption of Cxbladder by Kaiser Permanente and other large healthcare organisations, further increasing reimbursement coverage from private payers, and achieving a positive shift in guideline inclusion language following the publication of new clinical evidence further supporting the clinical utility of Cxbladder.
Full integration into Kaiser’s patient referral system and Electronic Medical Records has yet to be concluded and continues to constrain the growth rate expected from this important customer. Despite this, commercial test numbers continue to grow.
The recent clinical papers supporting the combined use of multiple Cxbladder products will further evolve how urothelial cancer is diagnosed and managed, with Cxbladder once again leading the way and delivering a greatly enriched clinical proposition for urologists. These papers also provide additional support in favour of inclusion in guidelines and national standards, which remains a key component that will drive widespread adoption of Cxbladder.
Pacific Edge’s rest of world markets – New Zealand, Australia and Singapore – are markets of strategic importance, with tailored plans being executed dependent on each market’s commercial maturity.
Chairman of Pacific Edge, Chris Gallaher, said: “Pacific Edge’s growth momentum over the last six months, despite the ongoing headwinds from Covid19, confirms the validity of our global growth strategy and the way we go to market. We have a committed and experienced team, with significant funding in place to allow us to scale up and to deliver revenue growth and value creation for our shareholders in FY22 and beyond. We are confident in our
Company Announcement 25 November 2021
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future and the actions we are taking now are positioning us to accelerate our growth trajectory once Covid-19 restrictions ease.”
ENDS
For more information contact: David Darling, Chief Executive Officer, Pacific Edge Ltd, P: +64 (3) 479 5800
For media assistance, please contact: Jackie Ellis, P: +64 27 246 2505 E: [email protected]
OVERVIEW www.pacificedge.co.nz www.pacificedgedx.com
Pacific Edge Limited (NZX: PEB) is a New Zealand publicly listed, cancer diagnostic company specialising in the discovery and commercialisation of diagnostic and prognostic tests for better detection and management of cancer. Its Cxbladder suite of non-invasive, simple to use and accurate diagnostic tests provide actionable results, and better detection and management of urothelial cancer. The company is developing and commercialising its range of Cxbladder bladder cancer tests globally through its wholly owned central laboratories in New Zealand and the USA. The company’s products have been tested and validated in international multi-centre clinical studies.
ABOUT Cxbladder Triage www.cxbladder.com
Cxbladder Triage combines the power of the genomic biomarkers with additional phenotypic and clinical risk factors to accurately identify patients with haematuria who have a low probability of bladder cancer and may not require a more extensive urological evaluation. Cxbladder Triage is a tool for use by clinicians and physicians in primary evaluation of patients with haematuria and is intended to reduce the need for an expensive and invasive work-up in patients who have a low probability of having urothelial carcinoma.
ABOUT Cxbladder Detect www.cxbladder.com
Cxbladder Detect enables the non-invasive detection of bladder and other urinary tract cancers from a small volume of a patients’ urine. Cxbladder Detect provides clinicians with a quick, cost effective and accurate measure of the presence of the cancer as an effective adjunct to cystoscopy.
ABOUT Cxbladder Monitor www.cxbladder.com
Cxbladder Monitor allows urologists to monitor bladder cancer patients for recurrence of the disease. Bladder cancer has a recurrence rate of 50-80% and requires life-long surveillance. Cxbladder Monitor accurately identifies patients with a prior history of urothelial cancer (UC) whose Cxbladder Monitor score shows that they have a low probability of recurrent urothelial carcinoma. Cxbladder Monitor is designed to be used as the preferred adjunct test to cystoscopy in the management of patients for ongoing evaluation of recurrent bladder cancer.
ABOUT Cxbladder Resolve www.cxbladder.com
Cxbladder Resolve identifies those patients who are likely to have aggressive or more advanced bladder cancer. Cxbladder Resolve, when used as part of the primary evaluation of haematuria and/or in conjunction with other Cxbladder tests (Triage, Detect), is designed to assist clinicians by accurately identifying patients with a high probability of having high grade or late stage bladder cancer, for whom alternative or expedited treatment options may be warranted, or who can be prioritised for further investigation in high throughput settings.
Refer to www.cxbladder.com for more information.
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1H22 INTERIM RESULTS PRESENTATION FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2021
25 November 2021
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2
DISCLAIMER
Important Notice
This presentation has been prepared by Pacific Edge Limited (PEL) solely to provide interested parties with further information about PEL and its activities at the date of this presentation.
Information of a general nature
The information in this presentation is of a general nature and does not purport to be complete nor does it contain all the information which a prospective investor may require in evaluating a possible investment in PEL or that would be required in a product disclosure statement, prospectus or other disclosure document for the purposes of the New Zealand Financial Markets Conduct Act 2013 (FMCA) or the Australian Corporations Act. PEL is subject to a disclosure obligation that requires it to notify certain material information to NZX Limited (NZX) and ASX Limited (ASX) for the purpose of that information being made available to participants in the market and that information can be found by visiting
www.nzx.com/companies/PEB and www2.asx.com.au/markets/company/PEB. This presentation should be read in conjunction with PEL’s other periodic and continuous disclosure announcements released to NZX and ASX.
Not an offer
This presentation is for information purposes only and is not an invitation or offer of securities for subscription, purchase or sale in any jurisdiction where such offer purchase or sale would not be permitted.
Not financial product advice
This presentation does not constitute legal, financial, tax, financial product advice or investment advice or a recommendation to acquire PEL securities, and has been prepared without taking into account the objectives, financial situation or needs of investors. Before making an investment decision, prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and consult an NZX Firm, solicitor, accountant or other professional advisor if necessary.
Forward-looking statements
This presentation contains forward-looking statements that reflect PEL’s current views with respect to future events. Forward-looking statements, by their very nature, involve inherent risks and uncertainties. Many of those risks and uncertainties are matters which are beyond PEL’s control and could cause actual results to differ from those predicted. Variations could either be materially positive or materially negative. The information is stated only as at the date of this presentation. Except as required by law or regulation (including the NZX Listing Rules and ASX Listing Rules), PEL undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. To the maximum extent permitted by law, the directors of PEL, PEL and any of its related bodies corporate and affiliates, and their respective officers, partners, employees, agents, associates and advisers do not make any representation or warranty, express or implied, as to the accuracy, reliability or completeness of such information, or the likelihood of fulfilment of any forward-looking statement or any event or results expressed or implied in any forward-looking statement, and disclaim all responsibility and liability for these forward-looking statements (including, without limitation, liability for negligence).
Financial data
All dollar values are in New Zealand dollars unless otherwise stated.
This presentation should be read in conjunction with, and subject to, the explanations and views of future outlook on market conditions, earnings and activities given in the announcements relating to the results, and interim report, for the six months ended 30 September 2021.
Effect of rounding
A number of figures, amounts, percentages, estimates, calculations of value and fractions in this presentation are subject to the effect of rounding. Accordingly, the actual calculation of these figures may differ from the figures set out in this presentation.
Past performance
Investors should note that past performance, including past share price performance, cannot be relied upon as an indicator of (and provides no guidance as to) future PEL performance, including future financial position or share price performance.
Investment risk
An investment in securities of PEL is subject to investment risk and other known and unknown risks, some of which are beyond the control of PEL. PEL does not guarantee any particular return or the performance of PEL.
Disclaimer
None of PEL or PEL’s advisers or any of their respective affiliates, related bodies corporate, directors, officers, partners, employees and agents, have authorised, permitted or caused the issue, submission, dispatch or provision of this presentation and, except to the extent referred to in this presentation, none of them makes or purports to make any statement in this presentation and there is no statement in this presentation which is based on any statement by any of them.
To the maximum extent permitted by law, none of PEL and its advisers, affiliates, related bodies corporate, nor their respective directors, officers, partners, employees and agents makes any representation or warranty, express or implied, as to the currency, accuracy, reliability or completeness of information in this presentation; and none of them shall have any liability (including for negligence) for:
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any errors or omissions in this presentation; or
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any failure to correct or update this presentation, or any other written or oral communications provided in relation to this presentation; or
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any claim, loss or damage (whether foreseeable or not) arising from the use of any information in this presentation or otherwise arising in connection with this presentation or the information contained in it.
By receiving this presentation, you agree to the above terms and conditions.
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1H22 KEY EVENTS
PLATFORM FOR GROWTH
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Dual listing on the ASX in September 2021
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Successful $103.5 million capital raise
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Addition of new reputable global funds to the register
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US COMMERCIAL Expansion of sales team by 75%; staffing of two new sales territories; increase in OPERATIONS support roles
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Adoption of second Cxbladder product (Cxbladder Triage) by Kaiser Permanente
NEW ZEALAND
- Two additional healthcare providers (DHBs) adopting Cxbladder into use
• PIVOTAL CLINICAL Two pivotal papers highlighting significant clinical utility of Cxbladder – from EVIDENCE combined use of multiple Cxbladder products to evaluate haematuria patients; and use of in home sampling system for managing patients outside of the clinic • Analysis of results from Singapore study is underway with publication in early 2022 planned to trigger SEA commercial launch
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POSITIVE MOMENTUM DESPITE CONTINUING IMPACT OF COVID-19
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Resurgence of restrictions due to spread of Delta variant in the US and New Zealand
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Sporadic access to clinics and urologists for patients and for Pacific Edge sales team
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Health organisations priortising resources to cope with Covid-19
PACIFIC EDGE CONTINUES TO ADAPT AND GROW IN THE CHALLENGING CONDITIONS:
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Virtual sales meetings and adaptation of sales and marketing plans
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Continuing use and growing recognition of the benefits of Cxbladder Patient In-Home Sampling System (PIHSS)
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USA look-back study has highlighted the significant clinical utility of Cxbladder PIHSS for managing patients outside the clinic
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1H22 COMMERCIAL PROGRESS
REIMBURSEMENT
- Positive step change compared to 1H21 reflects increasing adoption and reimbursement from CMS from 1 July 2020
US REMAINS PRIMARY MARKET
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US increasing as a percentage of test use and revenue. Expected to grow further as US operations and sales team are scaled up
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30 sales reps will be ‘on the ground’ by end-November 2021, up from 16 employed for most of FY21
KAISER PERMANENTE (KP)
- Focus on integrating Cxbladder into KP’s electronic medical records to facilitate the ‘User Experience’ and drive adoption internally. Progress hampered as KP resources directed elsewhere during Covid-19 breakouts
PIVOTAL CLINICAL EVIDENCE
- Two pivotal clinical papers highlighting the significant clinical utility provided by Cxbladder. Will further evolve how urothelial cancer is diagnosed and managed. Provides additional support in favour of inclusion in guidelines and national standards
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1H22 FINANCIAL SNAPSHOT POSITIVE MOMENTUM DESPITE COVID RESTRICTIONS
| NZ$m | 1H22 | 1H21 | % change |
|---|---|---|---|
| Total Revenue | 6.7 | 4.1 | +66% |
| Operating Revenue(test sales) | 5.4 | 3.3 | +62% |
| Operating Expenses | 15.7 | 11.2 | +41% |
| Net Loss After Tax | 9.0 | 7.1 | +27% |
| Cash Receipts from Customers | 5.4 | 2.6 | +110% |
| Net Operating Cash Outflow | 8.6 | 7.7 | +12% |
| Cash, cash equivalents and short term deposits |
91.61 | 29.3 |
- Excludes proceeds of $23.5m from the Retail Offer component of the capital raising which was received 20 October 2021
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STRONG YEAR ON YEAR GROWTH IN TEST THROUGHPUT AND SALES
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TOTAL LABORATORY
COMMERCIAL TESTS
THROUGHPUT (TLT)
62% growth on 1H21 64% growth on 1H21
12,000 10,000
11,136 9,192
10,000
8,950 8,000 7,385
8,000
6,864
6,000 5,591
6,000
4,000
4,000
2,000
2,000
0 0
1H21 2H21 1H22 1H21 2H21 1H22
NZ$’000 NZ$’000
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TOTAL LABORATORY THROUGPUT BY REGION AND TEST TYPE
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US continues to grow in importance, up to 81% of Growth in TLT for Cxbladder Detect, led by growth in
TLT and commercial tests US test volumes (which are weighted towards Detect)
ROW
1H22: 19% Monitor Triage
1H21: 28% 1H22: 19%
1H22: 25%
1H21: 27%
1H21: 24%
TLT BY REGION
TLT BY TEST TYPE
(6 months to 30 Sept 2021)
(6 months to 30 Sept 2021)
USA
Detect
1H22 : 81%
1H22: 56%
1H21 : 72%
1H21: 49%
TLT: Total Laboratory Throughput. Includes all commercial and User Programme tests
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TLT: Total Laboratory Throughput. Includes all commercial and User Programme tests
STEP CHANGE IN REVENUE GROWTH AND CASH RECEIPTS DRIVEN BY LCD INCLUSION, AND INCREASING REIMBURSEMENT AND ADOPTION
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OPERATING REVENUE CASH RECEIPTS
62% increase on 1H21 110% increase on 1H21
6.0 6.0
5.4 5.4
5.0 5.0
4.0 4.0
3.3
3.0 3.0
2.6
2.4
2.3
2.0 2.0
2.0 2.0 1.7
1.4
1.0 1.0
0.0 0.0
1H18 1H19 1H20 1H21 1H22 1H18 1H19 1H20 1H21 1H22
NZD Millions NZD Millions
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OPERATING EXPENSES
INCREASE IN OPERATING EXPENSES DRIVEN BY INVESTMENT IN GROWTH AND ESCALATING TEST VOLUMES PROCESSED THROUGH THE LABORATORIES
| (NZ$000) | HY22 | HY21 | % Change | • Laboratory expenses driven by volume growth • Research: Progress of clinical studies and patient recruitment being hampered by Covid-19 • Sales and Marketing driven by investment in US sales team (sales reps increased from 16 for most of FY21 to 28 as at 30 Sept 21), marketing and support costs. • General and Administration uplift driven by increased people capability to support growth and ASX listing costs |
|---|---|---|---|---|
| Laboratory Operations | 3,076 | 2,540 | 21% | |
| Research | 2,572 | 2,339 | 10% | |
| Sales and Marketing | 6,179 | 3,366 | 84% | |
| General and Administration | 3,888 | 2,908 | 34% | |
| TOTAL | 15,715 | 11,153 | 41% |
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USA REMAINS OUR PRIMARY MARKET
MOMENTUM IN US DESPITE COVID IMPACT
USA
81% of TLT
81% of Commercial Tests
93% of Operating Revenue
Scaled up U.S.
South East Asia
commercial
operations
provide capacity Rest of World
and resource to
19% of TLT
Australia
drive revenue
19% of Commercial Tests
growth
7% of Operating Revenue
New Zealand
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POSITIVE GROWTH OUTLOOK
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Well positioned to capitalise on recent commercial milestones and as Covid-19 restrictions ease
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US remains primary focus
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Recent clinical evidence supports adoption of multiple products and Cxbladder PIHSS patient testing
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Publication of new clinical evidence will support additional US guideline inclusion and greater adoption of Cxbladder
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Continued focus on adoption by remaining NZ public healthcare providers, to take population coverage to 100%
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Southeast Asia has the potential to become a market of scale over time with an accessible population base larger than the U.S
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Australia is in the early stages of commercial take-up - opportunity to deliver sales and volume growth
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Appointment of new CEO, Dr Peter Meintjes (commencing January 2022)
US GROWTH DRIVERS
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Strong growth in revenue and cash receipts expected from CMS and Kaiser Permanente once Covid-19 restrictions ease
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Scaled up commercial operations with 30 sales reps covering 21 sales territories will be operating by endNovember 2021 (up from 22 as at 31 March 2021)
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Sales focus is on growing the commercial adoption of Cxbladder by Kaiser Permanente and other large healthcare institutions of scale, and further increasing reimbursement coverage from private payers
-
U.S. commercial launch of the fourth Cxbladder test (Cxbladder Resolve) to be initiated with key customers
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Enquiries to David Darling CEO Pacific Edge Limited
P +64 3 479 5802 M +64 21 797981 E [email protected]
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www.pacificedge.co.nz www.cxbladder.com www.pacificedgedx.com
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GLOSSARY
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Commercial Tests are those tests for which the Company is actively seeking reimbursement and cash receipts, and tests performed at no charge in order to gain new customers.
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Total laboratory throughput (TLT) includes commercial tests and non-commercial tests related to customer’s start-up User.
-
CMS - Centers for Medicare and Medicaid Services.
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Medicare – the federal health insurance programme for people who are 65 or older administered by the CMS or CMS’s contractors
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Medicare Advantage – part of the Medicare programme. A type of Medicare health plan offered by Medicare-approved private insurance companies, rather than the federal government. Often includes policy advantages over the standard Medicare policy
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CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2021
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PACIFIC EDGE LIMITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 2021
PACIFIC EDGE LIMITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 2021
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2021
Consolidated Interim Financial Statements
| Consolidated Statement of Comprehensive Income | 3 | |
|---|---|---|
| Consolidated Statement of Changes in Equity | 4 | |
| Consolidated Balance Sheet | 6 | |
| Consolidated Statement of Cash Flows | 7 | |
| Notes to the Consolidated Interim Financial Statements | ||
| 1. | Summary of Accounting Policies | 8 |
| 2. | Investment and Advances in Subsidiaries | 9 |
| 3. | Dividends | 10 |
| 4. | Revenue and Other Income | 10 |
| 5. | Operating Expenses | 11 |
| 6. | Segment Information | 12 |
| 7. | Share Capital | 17 |
| 8. | Reconciliation of Cash Used from Operating | |
| Activities with Operating Net Loss | 18 | |
| 9. | Contingent Liabilities | 18 |
| 10. | Unrecognised Revenue | 18 |
| 11. | Capital Commitments | 19 |
| 12. | Subsequent Event | 19 |
| 13. | The Impact of Covid-19 | 20 |
| 14. | Related Parties | 20 |
| 15. | Net Tangible Assets | 21 |
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UNAUDITED UNAUDITED AUDITED
SEPT 2021 SEPT 2020 MARCH 2021
6 MONTHS 6 MONTHS 12 MONTHS
NOTES ($000) ($000) ($000)
REVENUE
Operating Revenue 4 5,378 3,326 7,701
Total Operating Revenue 5,378 3,326 7,701
Other Income 4 747 558 2,386
Interest Income 108 173 351
Foreign Exchange Gain 497 3 1
Total Revenue and Other Income 6,730 4,060 10,439
OPERATING EXPENSES
Laboratory Operations 3,076 2,540 5,466
Research 2,572 2,339 4,584
Sales and Marketing 6,179 3,366 9,202
General and Administration 3,888 2,908 5,410
Total Operating Expenses 5 15,715 11,153 24,662
NET (LOSS) BEFORE TAX (8,985) (7,093) (14,223)
Income Tax Expense - - -
(LOSS) FOR THE PERIOD AFTER TAX (8,985) (7,093) (14,223)
Items that may be reclassified to profit or loss:
Translation of Foreign Operations - 14 46
TOTAL COMPREHENSIVE (LOSS) atttributable
(8,985) (7,079) (14,177)
to equity holders of the Company
Earnings per share for profit attributable to the
equity holders of the Company during the period
Basic and Diluted Earnings per share (0.012) (0.010) (0.020)
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Note: These Financial Statements are to be read in conjunction with the Notes to the Financial Statements
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3
PACIFIC EDGE LIMITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 2021
PACIFIC EDGE LIMITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 2021
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2021
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SHARE ACCUMULATED SHARE BASED FOREIGN CURRENCY TOTAL
CAPITAL LOSSES PAYMENTS TRANSLATION EQUITY
RESERVE RESERVE
NOTES ($000) ($000) ($000) ($000) ($000)
UNAUDITED 6 MONTHS TO 30 SEPT 2020
Balance as at 31 March 2020 165,423 (156,242) 4,542 781 14,504
(Loss) After Tax - (7,093) - - (7,093)
Other Comprehensive Income - - - 14 14
TOTAL COMPREHENSIVE (LOSS) atttributable to equity holders of the Company - (7,093) - 14 (7,079)
Transactions with owners in their capacity as owners:
Issue of Share Capital 7 21,968 - - - 21,968
Share Based Payments - Employee Remuneration 7 284 - - - 284
Share Based Payments - Employee Share Options 7 348 404 38 - 790
Balance as at 30 September 2020 188,023 (162,931) 4,580 795 30,467
AUDITED 12 MONTHS TO 31 MARCH 2021
Balance as at 31 March 2020 165,423 (156,242) 4,542 781 14,504
(Loss) After Tax - (14,223) - - (14,223)
Other Comprehensive Income - - - 46 46
TOTAL COMPREHENSIVE (LOSS) atttributable to equity holders of the Company - (14,223) - 46 (14,177)
Transactions with owners in their capacity as owners:
Issue of Share Capital 7 21,962 - - - 21,962
Share Based Payments - Employee Remuneration 7 284 - - - 284
Share Based Payments - Employee Share Options 7 2,636 404 (504) - 2,536
Balance as at 31 March 2021 190,305 (170,061) 4,038 827 25,109
UNAUDITED 6 MONTHS TO 30 SEPT 2021
Balance as at 31 March 2020 190,305 (170,061) 4,038 827 25,109
(Loss) After Tax - (8,985) - - (8,985)
Other Comprehensive Income - - - - -
TOTAL COMPREHENSIVE (LOSS) atttributable to equity holders of the Company - (8,985) - - (8,985)
Transactions with owners in their capacity as owners:
Issue of Share Capital 7 76,045 - - - 76,045
Share Based Payments - Employee Remuneration 7 172 - - - 172
Share Based Payments - Employee Share Options 7 1,175 - (121) - 1,054
Balance as at 30 September 2021 267,697 (179,046) 3,917 827 93,395
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Note: These Financial Statements are to be read in conjunction with the Notes to the Financial Statements
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PACIFIC EDGE LIMITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 2021
PACIFIC EDGE LIMITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 2021
CONSOLIDATED BALANCE SHEET
AS AT 30 SEPTEMBER 2021
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UNAUDITED UNAUDITED AUDITED
SEPT 2021 SEPT 2020 MARCH 2021
6 MONTHS 6 MONTHS 12 MONTHS
NOTES ($000) ($000) ($000)
CURRENT ASSETS
Cash and Cash Equivalents 80,081 6,283 4,129
Short Term Deposits 11,505 23,000 19,000
Receivables 2,978 1,656 2,866
Inventory 956 791 790
Other Assets 930 760 557
Total Current Assets 96,450 32,490 27,342
NON-CURRENT ASSETS
Property, Plant and Equipment 908 664 688
Right of Use Assets 2,381 3,652 2,977
Intangible Assets 231 176 177
Total Non-Current Assets 3,520 4,492 3,842
TOTAL ASSETS 99,970 36,982 31,184
CURRENT LIABILITIES
Payables and Accruals 4,227 2,136 3,197
Borrowings - 803 -
Lease Liabilities 1,033 1,264 1,098
Total Current Liabilities 5,260 4,203 4,295
NON-CURRENT LIABILITIES
Lease Liabilities 1,315 2,312 1,780
Total Non-Current Liabilities 1,315 2,312 1,780
TOTAL LIABILITIES 6,575 6,515 6,075
NET ASSETS 93,395 30,467 25,109
Represented by:
EQUITY
Share Capital 7 267,697 188,023 190,305
Accumulated Losses (179,046) (162,931) (170,061)
Share Based Payments Reserve 3,917 4,580 4,038
Foreign Translation Reserve 827 795 827
TOTAL EQUITY 93,395 30,467 25,109
FURTHER INFORMATION
Net Tangible Assets per share ($) 15 0.118 0.042 0.034
For and on behalf of the Board of Directors Director Director
Dated 24th day of November 2021
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Note: These Financial Statements are to be read in conjunction with the Notes to the Financial Statements
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2021
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UNAUDITED UNAUDITED AUDITED
SEPT 2021 SEPT 2020 MARCH 2021
6 MONTHS 6 MONTHS 12 MONTHS
NOTES ($000) ($000) ($000)
CASH FLOWS TO OPERATING ACTIVITIES
Cash was provided from:
Receipts from Customers 5,370 2,553 6,747
Receipts from Grant Providers 469 277 1,059
Interest Received 242 183 271
6,081 3,013 8,077
Cash was disbursed to:
Payments to Suppliers and Employees 14,683 10,739 21,643
Net GST cash outflow (inflow) 14 (47) 4
14,697 10,692 21,647
Net Cash Flows (To) Operating Activities 8 (8,616) (7,679) (13,570)
NET CASH FLOWS FROM / (TO) INVESTING ACTIVITIES
Cash was provided from:
Proceeds from Short Term Deposits 17,000 13,029 23,081
17,000 13,029 23,081
Cash was disbursed to:
Purchase of Short Term Deposits 9,505 23,000 29,052
Capital Expenditure on Plant and Equipment 298 140 270
Capital Expenditure on Intangible Assets 108 42 108
9,911 23,182 29,430
Net Cash Flows From / (To) Investing Activities 7,089 (10,153) (6,349)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash was received from:
Proceeds from Borrowings - 803 -
Ordinary Shares Issued 7 80,000 22,204 22,000
Exercising of Share Options 657 - 1,500
80,657 23,007 23,500
Cash was disbursed to:
Repayment of Leases 575 654 1,250
Issue Expenses 7 3,099 32 38
3,674 686 1,288
Net Cash Flows From Financing Activities 76,983 22,321 22,212
Net Increase (Decrease) in Cash Held 75,456 4,489 2,293
Add Opening Cash Brought Forward 4,129 1,755 1,755
Effect of exchange rate changes on net cash 496 39 81
Ending Cash Carried Forward 80,081 6,283 4,129
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Note: These Financial Statements are to be read in conjunction with the Notes to the Financial Statements
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PACIFIC EDGE LIMITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 2021
PACIFIC EDGE LIMITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 2021
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2021
1 . SUMMARY OF ACCOUNTING POLICIES
presented are those of Pacific Edge Limited (“Company”) and its subsidiaries (“Group”). The Company is registered and domiciled in New Zealand for the purpose of developing and commercialising new diagnostic and prognostic tools for the early detection and management of cancers. Pacific Edge Diagnostics New Zealand Limited and Pacific Edge Diagnostics USA Limited manage and operate the laboratories used for the detection of bladder cancer. Pacific Edge (Australia) Pty Limited’s purpose is to research and develop the Cxbladder products and other prognostic tools. Pacific Edge Diagnostics Singapore Pte Limited’s purpose is sales and marketing of bladder cancer products and assisting with research and development. Pacific Edge Analytical Services Limited is a dormant entity.
1993 and is a reporting entity for the purposes of the Financial Markets Conduct Act 2013. The Company is dual listed, with its primary listing of ordinary shares quoted in New Zealand on the NZX Main Board, and a secondary listing in Australia as a Foreign Exempt Entity on the ASX.
a) Basis of Preparation of Financial Statements
The Interim Financial Statements for the six months ended 30 September 2021 have been prepared in accordance with New Zealand Generally Accepted Accounting Practice (GAAP) and the Financial Markets Conduct Act 2013. They comply with the New Zealand Equivalents to International Financial Reporting Standards (NZ IFRS) and other guidance as issued by the External Reporting Board, as appropriate for profit entities, and with International Financial Reporting Standards.
The Interim Financial Statements have been prepared in accordance with NZ IAS 34 - Interim Financial Reporting. In complying with NZ IAS 34, these consolidated Interim Financial Statements also comply with IAS 34 - Interim Financial Reporting and should be read in conjunction with the Company’s 2021 Annual Report. The Interim Financial Statements for the six months ended 30 September 2021 are unaudited. Comparative balances for 30 September 2020 are unaudited, whilst the comparative balances for 31 March 2021 are audited.
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2021
The Interim Financial Statements were authorised by the Board of Directors on 24th November 2021. The Annual Financial Statements for the year ended 31 March 2021 were authorised by the Board of Directors on 26th May 2021.
c) Audit
The Interim Financial Statements have not been audited. The comparative full year financial results for the year ended 31 March 2021 have been audited.
d) Basis of Consolidation
The following entities and the basis of their inclusion for consolidation in these Interim Financial Statements are as follows:
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Ownership Interests
& Voting Rights
Place of
30 Sept 30 Sept
Incorporation
Name of Subsidiary Principal Activity 2021 2020
(or registration)
(%) (%)
and Operation
Pacific Edge Diagnostics New Zealand Commercial Laboratory 100 100
New Zealand Limited Operation
Pacific Edge (Australia) Australia Biotechnology Research 100 100
Pty Limited & Development
Pacific Edge Diagnostics USA Commercial Laboratory 100 100
USA Limited Operation
Pacific Edge Diagnostics Singapore Commercial Sales and Research & 100 100
Singapore Pte Limited
Development
Pacific Edge Analytical New Zealand Dormant Company 100 100
Services Limited
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2. INVESTMENT AND ADVANCES IN SUBSIDIARIES
The Interim Financial Statements are prepared on the basis of historical cost, except where otherwise identified. The presentational currency used in the preparation of the financial statements is New Zealand dollars and all values are rounded to the nearest thousand dollars ($000).
b) Accounting Policies and Accounting Estimates
The consolidated Interim Financial Statements incorporate the assets and liabilities and results of Pacific Edge Diagnostics New Zealand Limited, Pacific Edge (Australia) Pty Limited, Pacific Edge Diagnostics USA Limited, Pacific Edge Diagnostics Singapore Pte Limited and Pacific Edge Analytical Services Limited, all of which are 100% owned by the Company.
the audited financial statements of Pacific Edge Limited for the year ended 31 March 2021.
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PACIFIC EDGE LIMITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 2021
PACIFIC EDGE LIMITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 2021
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2021
3. DIVIDENDS
The Company does not propose to pay dividends to shareholders similar to previous years. This policy continues.
4. REVENUE AND OTHER INCOME
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Unaudited Unaudited Audited
Sept 2021 Sept 2020 March 2021
6 Months 6 Months 12 Months
($000) ($000) ($000)
Cxbladder Sales
- US 4,982 2,906 6,888
- Rest of World 396 420 813
Total Operating Revenue 5,378 3,326 7,701
Other Income
Grant Revenue 295 - 322
Research Rebate 452 255 952
Covid-19 Support - 303 1,112
Total Other Income 747 558 2,386
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NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2021
5. OPERATING EXPENSES
The note below highlights total expenses shown within total operating expenses. These items are then split across functions laboratory, research, sales and marketing and general and administration as reported in the annual report.
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Unaudited Unaudited Audited
Sept 2021 Sept 2020 March 2021
6 Months 6 Months 12 Months
Notes ($000) ($000) ($000)
Operating Expenses
Amortisation 54 44 109
Auditors Remuneration
- Group year end fnancial statements 80 68 155
- Half year review of fnancial statements 27 29 29
- Foreign statutory financial statements 12 6 23
Total Auditors Remuneration 119 103 207
Consultants and Contractors 400 355 874
Depreciation 127 106 188
Depreciation on Right of Use Assets 526 569 1,073
Directors Fees 186 151 278
Employee Benefts 6,770 4,376 11,228
Employee Share Scheme Expenses 172 284 284
Employee Share Options 397 585 1,036
Interest on Lease Liabilities 69 37 104
NZX / ASX / Registry Fees 806 64 122
Rental and Lease Expense 28 19 34
Other Operating Expenses 6,061 4,460 9,125
Total Operating Expenses 15,715 11,153 24,662
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*In addition to the Auditors Remuneration in the Operating Expenses, NZ$42,000 was paid to PWC Australia for the review of the proforma financials related to the ASX Listing and Capital Raise and has been included in Issue Expenses within Share Capital.
Employee Share Scheme
Employee Share Scheme Expenses are a non-cash expense. These relate to shares issued to employees in lieu of cash bonuses.
Employee Share Options
Employee Share Options are a non-cash expense. Refer to Note 8 of the Annual Report for details of the accounting policy for Employee Share Schemes.
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PACIFIC EDGE LIMITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 2021
PACIFIC EDGE LIMITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 2021
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2021
Other Operating Expenses
The major categories of expenditure which make up operating expenses, but are not disclosed separately above: Laboratory costs, Information Technology costs, Compliance and Regulatory costs and Investor Relations costs.
6. SEGMENT INFORMATION
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 Chief Executive Officer who makes strategic decisions.
There are two operating segments at balance date:
-
Commercial: The sales, marketing, laboratory and support operations to run the commercial businesses worldwide.
-
Research: The research and development of diagnostic and prognostic products for human cancer.
The reportable operating segment Commercial derives its revenue primarily from sales of Cxbladder tests and the reportable operating segment Research derives its revenue primarily from grant income. The Chief Executive Officer assesses the performance of the operating segments based on net (loss) for the period.
inter-segment eliminations to best represent the performance of each segment operating as independent business units. The segment information provided to the Chief Executive Officer for the reportable segment described above, for the six months ended 30 September 2021, is shown on the followng page.
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2021
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Less:
Unaudited 6 Months Commercial Research Eliminations Total
to 30 September 2021 ($000) ($000) ($000) ($000)
Income
Operating Revenue - External 5,378 - - 5,378
- Internal - - - -
Other Income 239 1,034 (526) 747
Interest Income 1 107 - 108
Foreign Exchange Gain - 497 - 497
Total Income 5,618 1,638 (526) 6,730
Expenses
Expenses 9,137 6,396 (526) 15,007
Depreciation & Amortisation 481 227 - 708
Total Operating Expenses 9,618 6,623 (526) 15,715
Loss Before Tax (4,000) (4,985) - (8,985)
Income Tax Expense - - - -
Loss After Tax (4,000) (4,985) - (8,985)
Net Cash Flow to Operating Activities (3,393) (5,223) - (8,616)
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Less:
Audited 12 Months Commercial Research Eliminations Total
to 31 March 2021 ($000) ($000) ($000) ($000)
Income
Operating Revenue - External 7,701 - - 7,701
- Internal - - - -
Other Income 1,224 2,130 (968) 2,386
Interest Income 1 350 - 351
Foreign Exchange Gain 3 (2) - 1
Total Income 8,929 2,478 (968) 10,439
Expenses
Expenses 14,529 9,730 (968) 23,291
Depreciation & Amortisation 934 437 - 1,371
Total Operating Expenses 15,463 10,167 (968) 24,662
Loss Before Tax (6,534) (7,689) - (14,223)
Income Tax Expense - - - -
Loss After Tax (6,534) (7,689) - (14,223)
Net Cash Flow to Operating Activities (6,438) (7,132) - (13,570)
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PACIFIC EDGE LIMITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 2021
PACIFIC EDGE LIMITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 2021
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2021
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Less:
Unaudited 6 Months Commercial Research Eliminations Total
to 30 September 2020 ($000) ($000) ($000) ($000)
Income
Operating Revenue - External 3,326 - - 3,326
- Internal - - - -
Other Income 151 806 (399) 558
Interest Income - 173 - 173
Foreign Exchange Gain 2 1 - 3
Total Income 3,479 980 (399) 4,060
Expenses
Expenses 5,866 4,967 (399) 10,434
Depreciation & Amortisation 503 216 - 719
Total Operating Expenses 6,369 5,183 (399) 11,153
Loss Before Tax (2,890) (4,203) - (7,093)
Income Tax Expense - - - -
Loss After Tax (2,890) (4,203) - (7,093)
Net Cash Flow to Operating Activities (4,053) (3,626) - (7,679)
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Eliminations
These are the intercompany transactions between the subsidiaries and the Parent. These are eliminated on consolidation of Group results.
Total Laboratory Throughput
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Commercial Research Total
Unaudited (#tests) (#tests) (#tests)
Six months ended 30 September 2021 9,192 1,944 11,136
Twelve months ended 31 March 2021 12,976 2,838 15,814
Six months ended 30 September 2020 5,591 1,273 6,864
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NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2021
Segment Assets and Liabilities Information
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Unaudited 6 Months to Commercial Research Total
30 September 2021 ($000) ($000) ($000)
Total Assets 5,529 94,441 99,970
Total Liabilities 4,073 2,502 6,575
Audited 12 Months to Commercial Research Total
31 March 2021 ($000) ($000) ($000)
Total Assets 5,477 25,707 31,184
Total Liabilities 4,529 1,546 6,075
Commercial Research Total
As at 30 September 2020 ($000) ($000) ($000)
Total Assets 5,805 31,177 36,982
Total Liabilities 4,895 1,620 6,515
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Additions to non-current assets for the period include
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Commercial Research Total
($000) ($000) ($000)
Property, Plant & Equipment 200 145 345
Right of Use Assets - - -
Intangible Assets 61 47 108
Total Additions to Non-Current Assets 261 192 453
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The amounts provided to the Chief Executive Officer with respect to total assets and total liabilities are measured in a manner consistent with that of the financial statements. These assets and liabilities are allocated based on the operation of the segment and the physical location of the asset.
There are no unallocated assets or liabilities.
Laboratory Throughput is a key metric for the Group: Laboratory Throughput provides evidence of the usage of Cxbladder products globally and the rates of adoption between different customer segments. Total Laboratory Throughput includes commercial tests, which are invoiced to customers, and research tests which are not considered to be billable as these tests relate to user programs or other non-chargeable activities.
Commercial test numbers are also a key metric for the Group: Commercial Tests are those tests for which the Company is actively seeking reimbursement and cash receipts, and tests performed at no charge in order to gain new customers.
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PACIFIC EDGE LIMITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 2021
PACIFIC EDGE LIMITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 2021
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2021
Geographic Split of Revenue and Non-Current Assets
The Group generates most of the operating revenue from Commercial tests from the US and New Zealand, and also receives other revenue from the US, Australia, Singapore and New Zealand. Rest of World consists of Revenue from Australia and Singapore.
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Unaudited Unaudited Audited
Sept 2021 Sept 2020 March 2021
6 Months 6 Months 12 Months
($000) ($000) ($000)
Operating and Other Revenue
US 4,982 2,906 7,677
New Zealand 915 585 2,133
Rest of World 228 394 277
Total Operating and Other Revenue 6,125 3,884 10,087
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The US accounted for 53% of non-current assets (September 2020: 60% and March 2021: 57%). Non-current assets located in New Zealand accounted for 47% of the Group’s total (September 2020: 39% and March 2021: 42%) with Rest of World consisting of non-current assets in Australia and Singapore, holding 0% of the Group’s total (September 2020: 1% and March 2021: 1%).
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Unaudited Unaudited Audited
Sept 2021 Sept 2020 March 2021
6 Months 6 Months 12 Months
($000) ($000) ($000)
Non-Current Assets
US 1,866 2,702 2,201
New Zealand 1,649 1,736 1,618
Rest of World 5 54 23
Total Non-Current Assets 3,520 4,492 3,842
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NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2021
7. SHARE CAPITAL
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Unaudited Unaudited Audited
Sept 2021 Sept 2021 Sept 2020 March 2021
Shares 6 Months 6 Months 12 Months
6 Months ($000) ($000) ($000)
Shares (000)
Opening Balance 727,779 190,305 165,423 165,423
Issue of Ordinary Shares - Placement [1] 59,259 80,000 22,000 22,000
Issue of Ordinary Shares - Exercise of 1,308 1,175 348 2,636
Share Options [2]
Issue of Ordinary Shares - Employee 123 172 284 284
Remuneration [3]
Less: Issue Expenses - (3,955) (32) (38)
Movement 60,690 77,392 22,600 24,882
Closing Balance 788,469 267,697 188,023 190,305
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1 During the period 59,259,259 shares were issued under placements at $1.35 per share. (September 2020 and March 2021: 33,846,154 at $0.65)
2 During the period 1,307,501 share options were exercised at an average price of $0.50 per share (Six months to September 2020: 619,999 at an average price of $0.33: Twelve months to March 2021: 3,635,835 at an average price of $0.41)
3 During the period 123,086 shares were issued as part of employees remuneration in lieu of cash payments at an average price of $1.40 per share. (Six months to September 2020 and Twelve months to March 2021: 645,182 at $0.44)
There are 788,469,244 (September 2020: 724,763,562 and March 2021: 727,779,398) ordinary shares on issue.
All fully paid shares in the Company have equal voting rights and equal rights to dividends. All Ordinary Shares are fully paid and have no par value.
On the 23rd September 2021, the Group announced a capital raise to accelerate growth, consisting of a Placement via an institutional bookbuild, which was to be followed by a Retail Offer.
The Placement via the institutional bookbuild was successfully completed with settlement occurring on the 29th and 30th September 2021. The Placement raised $80m of capital at an issue price of $1.35. The Cash and Cash Equivalents and Short Term Deposits in the Balance Sheet as at 30 September 2021 incorporates the proceeds of the Placement.
The Retail Offer was opened on the 28th September 2021, and closed on the 13th October 2021. The Group raised a further $23.487m capital via the Retail Offer, with 17,389,099 shares allotted at $1.35 on the 20th October 2021. The proceeds of the Retail Offer have not been included in the Balance Sheet as at 30 September 2021, and have been included as a note in 12. Subsequent Events.
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PACIFIC EDGE LIMITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 2021
PACIFIC EDGE LIMITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 2021
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2021
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2021
10. UNRECOGNISED REVENUE
- RECONCILIATION OF CASH USED FROM OPERATING ACTIVITIES WITH OPERATING NET LOSS
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Unaudited Unaudited Audited
Sept 2021 Sept 2020 March 2021
6 Months 6 Months 12 Months
($000) ($000) ($000)
Net Loss for the Period (8,985) (7,093) (14,223)
Add Non Cash Items:
Depreciation 127 106 189
Loss on disposal of Property, Plant and Equipment - - 13
Amortisation 54 44 110
Employee Share Options 397 585 1,035
Employee bonuses paid in shares in lieu of cash 172 284 284
Depreciation on right of use assets 526 569 1,073
Interest on finance leases shown in lease repayments 69 37 103
Total Non Cash Items 1,345 1,625 2,807
Add Movements in Other Working Capital items:
(Increase) in Receivables and Other Assets (484) (1,081) (2,088)
(Increase) / Decrease in Inventory (166) 6 6
Increase/(Decrease) in Payables and Accruals 172 (1,133) (71)
Effect of exchange rates on net cash (498) (3) (1)
Total Movement in Other Working Capital (976) (2,211) (2,154)
Net Cash Flows to Operating Activities (8,616) (7,679) (13,570)
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Approximately 40% of Cxbladder tests performed by the Group in the US up to 30th June 2020 relate to patients covered by the Centers for Medicare and Medicaid Services (CMS). The Group invoiced CMS for test performed for all patients with CMS coverage, however no revenue from these tests has been recognised.
On 3rd July 2020 the Company received a positive coverage decision from CMS, which results in the Company receiving reimbursement for all Cxbladder Monitor and Detect tests performed after 1 July 2020 for patients covered by the (CMS) across the US that are deemed medically necessary. Reimbursement for these tests is at the already determined national CMS price for Cxbladder of US$760 per test.
The Company has commenced discussions with Novitas Solutions Inc who administer the health insurance for the Centers for Medicare & Medicaid CMS seeking reimbursement for tests performed prior to 30 June 2020 for patients covered by the CMS.
Tests performed prior to 30 June 2020 for CMS total 22,634.
revenue as per IFRS 15 - Revenue from Contracts with Customers, as there is no certainty of any reimbursement on any of these tests performed prior to 30 June 2020, and there is no ability to reliably estimate the level of consideration that would be received if agreement can be reached with Novitas Solutions Inc over these previously performed tests.
11. CAPITAL COMMITMENTS
There are no capital commitments at 30 September 2021 (September 2020: Nil and March 2021: Nil).
12. SUBSEQUENT EVENTS
9. CONTINGENT LIABILITIES
There were no known contingent liabilities at 30 September 2021 (March 2021: Nil and September 2020: Nil). The Company and Group have not granted any securities in respect of liabilities payable by any other party whatsoever.
The Retail Offer of the capital raise detailed in Note 7. Share Capital was opened on the 28th September 2021, and closed on the 13th October 2021. The Group raised a further $23.487m capital via the Retail Offer, with 17,389,099 shares allotted at $1.35 on the 20th October 2021. Proceeds of the Retail Offer have not been included in the Balance Sheet as at 30 September 2021.
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PACIFIC EDGE LIMITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 2021
PACIFIC EDGE LIMITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 2021
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2021
13. THE IMPACT OF COVID-19
Covid-19 continues to have an impact on the throughput, revenue and expenses of the Group.
In the markets the Group operates in, measures have been employed by Governments in an attempt to limit the spread of the virus. This has restricted the ability for people to visit clinics and have tests performed for the occurrence of bladder cancer. This resulted in reduced throughput quantities for the group for the twelve months ended 31 March 2021. While throughput quantities have increased in six months to 30 September 2021 (up 62% on the prior corresponding six months ended 30 September 2020, and up 24% on the previous six months ended 31 March 2021) the markets we operate in are still feeling the effects of Covid-19, which is impacting the rate at which the Group can grow.
Offsetting the reduced access to urologists has been the increased adoption of the unique in-home sampling system which allows patients to perform tests at home, with the results provided to their urologist.
14. RELATED PARTIES
Details of all related party relationships have been disclosed in the annual report for the year ended 31 March 2021. No significant new transactions with Directors or Key Management Personnel occurred that would be considered a related party.
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2021
15. NET TANGIBLE ASSETS
Accounting Policy
Net Tangible Assets per share is a non-GAAP measure that is required to be disclosed by the NZX Listing Rules. The calculation of the Group’s Net Tangible Assets per share and it’s reconciliation to the consolidated balance sheet is presented below.
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Unaudited Unaudited Audited
Sept 2021 Sept 2020 March 2021
6 Months 6 Months 12 Months
($000) ($000) ($000)
Total Assets 99,970 36,982 31,184
Less Intangible Assets 231 176 177
Less Total Liabilities 6,575 6,515 6,075
Net Tangible Assets 93,164 30,291 24,932
Number of Shares Issued (000’s) 788,469 724,764 727,779
Net Tangible Assets per share $0.118 $0.042 $0.034
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87 St David Street, PO Box 56, Dunedin, New Zealand P +64 3 479 5800 F +64 3 479 5801 www.pacificedgedx.com
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Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Updated as at 17 October 2019
| Results for announcement to the market | Results for announcement to the market | Results for announcement to the market | Results for announcement to the market |
|---|---|---|---|
| Name of issuer | Pacific Edge Limited | ||
| Reporting Period | 6 months to 30 September 2021 | ||
| Previous Reporting Period | 6 months to 30 September 2020 | ||
| Currency | NZD | ||
| Amount (000s) | Percentage change | ||
| Revenue from continuing operations |
Operating revenue $5,378 Other income $1,352 |
Operating revenue 62% increase Other income 84% increase |
|
| Total Revenue | $6,730 | 66% | |
| Net profit/(loss) from continuing operations |
($8,985) | 27% increase in loss | |
| Total net profit/(loss) | ($8,985) | 27% increase in loss | |
| Interim/Final Dividend | |||
| Amount per Quoted Equity Security |
The Company does not propose to pay dividends to shareholders |
||
| Imputed amount per Quoted Equity Security |
Not applicable | ||
| Record Date | Not applicable | ||
| Dividend Payment Date | Not applicable | ||
| Current period | Prior comparable period | ||
| Net tangible assets per Quoted Equity Security |
$0.118 | $0.042 | |
| A brief explanation of any of the figures above necessary to enable the figures to be understood |
For commentary on the results, please refer to the commentary in the released NZX release. Further information is also set out in the unaudited financial statements of the Company for the 6 months to 30 September 2021 which accompany this information. |
||
| Authority for this announcement | |||
| Name of person authorised to make this announcement |
Grant Gibson, Chief Financial Officer | ||
| Contact person for this announcement |
Grant Gibson | ||
| Contact phone number | 03 479 8510 | ||
| Contact email address | [email protected] | ||
| Date of release through MAP | 25 November 2021 |
Unaudited financial statements accompany this announcement.