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 61 Significant accounting policies The accounting policies of the parent entity are consistent with those of the consolidated entity, as disclosed in note 2, except for the following: • Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity. • Dividends received from subsidiaries are recognised as other income by the parent entity and its receipt may be an indicator of an impairment of the investment. NOTE 29. INTERESTS IN SUBSIDIARIES The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with the accounting policy described in note 2: Ownership interest Principal place of business / 2021 2020 Name Country of incorporation % % Kazia Laboratories Pty Limited Australia 100.00% 100.00% Kazia Research Pty Limited Australia 100.00% 100.00% Kazia Therapeutics Inc. United States of America 100.00% 100.00% Glioblast Pty Limited Australia 100.00% 100.00% Kazia Therapeutics (Hong Kong) Limited Hong Kong 100.00% - NOTE 30. RECONCILIATION OF LOSS AFTER INCOME TAX TO NET CASH USED IN OPERATING ACTIVITIES Consolidated 2021 2020 $ $ Loss after income tax benefit for the year (8,421,960) (12,467,466) Adjustments for: Depreciation and amortisation 1,265,309 1,084,344 Net fair value loss on financial assets - 167,814 Share-based payments 636,383 262,105 Foreign exchange differences 430,273 - Loss on contingent consideration 2,570,261 474,557 Change in operating assets and liabilities: (Increase)/decrease in trade and other receivables (5,027,134) 358,452 Increase in prepayments (1,182,391) (167,701) Increase in trade and other payables 1,010,520 1,721,472 Decrease in deferred tax liabilities (484,347) (298,195) Increase in other provisions 92,570 55,099 Net cash used in operating activities (9,110,516) (8,809,519) Significant non-cash transactions During the year the consolidated entity acquired a licensing agreement in relation to the asset EVT801. At year end no portion of the purchase price had been paid and accordingly the transaction does not appear in the cash flow statement. Furthermore, the consolidated entity issued shares in satisfaction of an acquisition milestone. This transaction did not involve cash and accordingly the transaction does not appear in the cash flow statement. NOTE 28. PARENT ENTITY INFORMATION (CONTINUED)