Kazia Therapeutics Annual Report 2021

2021 AT A GLANCE CHAIRMAN’S LETTER CEO’S REPORT KEY MILESTONES PIPELINE REVIEW PARTNER FOR SUCCESS WORK WITH THE BEST #2 IN THE KAZIA STORY FINANCIAL REPORTS Kazia Therapeutics Limited Annual Report 2021 51 NOTE 7. EXPENSES Consolidated 2021 2020 $ $ Loss before income tax includes the following specific expenses: Amortisation Paxalisib licensing agreement 1,084,344 1,084,344 Evotech licensing agreement 180,965 - Total amortisation 1,265,309 1,084,344 Net foreign exchange loss Net foreign exchange loss 430,273 - Leases Expense relating to short term leases 92,552 107,929 Superannuation expense Defined contribution superannuation expense 138,010 139,697 Employee benefits expense excluding superannuation Employee benefits expense excluding superannuation 1,562,868 1,525,599 Other expenses Chinese With-Holding Tax incurred on license transaction 931,099 - Chinese Value Added Tax incurred on license transaction 537,578 - 1,468,677 - NOTE 8. INCOME TAX BENEFIT Consolidated 2021 2020 $ $ Numerical reconciliation of income tax benefit and tax at the statutory rate Loss before income tax benefit (8,906,307) (12,765,661) Tax at the statutory tax rate of 26% (2020: 27.5%) (2,315,640) (3,510,557) Tax effect amounts which are not deductible/(taxable) in calculating taxable income: Amortisation of intangibles 347,960 298,195 Share-based payments 175,005 72,079 Gain/loss on revaluation of contingent consideration 706,822 130,503 Research and Development claim - 279,675 (1,085,853) (2,730,105) Adjustment to deferred tax balances as a result of change in statutory tax rate (186,152) - Tax losses and timing differences not recognised 787,658 2,431,910 Income tax benefit (484,347) (298,195) Consolidated 2021 2020 $ $ Tax losses not recognised Unused tax losses for which no deferred tax asset has been recognised-Australia 70,896,259 67,429,803 Potential tax benefit @ 26% (2020: 27.5%) 18,433,027 17,531,749 Unused tax losses for which no deferred tax asset has been recognised-US 2,038,587 1,570,207 Potential tax benefit at statutory tax rates @ 21%-US 428,103 329,743