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 59 There were no transfers between levels during the financial year. The fair value of contingent consideration related to the acquisition of Glioblast Pty Ltd and the licence agreement is estimated by probability-weighting the expected future cash outflows, adjusting for risk and discounting. The effects on the fair value of risk and uncertainty in the future cash flows are dealt with by adjusting the estimated cash flows rather than adjusting the discount rate. The estimated cashflows were adjusted based on the directors’ assessment of achieving contracted milestones as disclosed in Note 15. The probabilities used fell in the range of 35% to 55% and were informed by generally accepted industry probabilities of drugs achieving certain milestones in their progression towards registration. Level 3 assets and liabilities Movements in level 3 assets and liabilities during the current and previous financial year are set out below: Level 3 Available- for-sale Total Consolidated $ $ $ Balance at 1 July 2019 1,370,431 - 1,370,431 Losses recognised in profit or loss 474,557 - 474,557 Balance at 30 June 2020 1,844,988 - 1,844,988 Losses recognised in profit and loss 2,570,261 - 2,570,261 Payout of milestone (3,400,000) - (3,400,000) Balance at 30 June 2021 1,015,249 - 1,015,249 NOTE 23. KEY MANAGEMENT PERSONNEL DISCLOSURES Compensation The aggregate compensation made to directors and other members of key management personnel of the consolidated entity is set out below: Consolidated 2021 2020 $ $ Short-term employee benefits 1,574,520 1,324,345 Post-employment benefits 112,290 96,473 Share-based payments 616,598 230,036 2,303,408 1,650,854 Please refer to Note 27 for other transactions with key management personnel and their related parties. NOTE 24. REMUNERATION OF AUDITORS During the financial year the following fees were paid or payable for services provided by Grant Thornton Audit Pty Ltd, the auditor of the company: Consolidated 2021 2020 $ $ Audit services - Grant Thornton Audit Pty Ltd Audit or review of the financial statements 151,400 124,250 NOTE 25. CONTINGENT LIABILITIES Other than the contingent consideration set out in note 15, the consolidated entity does not have any other contingent liabilities. NOTE 26. COMMITMENTS Lease commitments comprise contracted amounts for leases of premises. The agreement has a duration less than 12 months from financial year end. NOTE 22. FAIR VALUE MEASUREMENT (CONTINUED)