Kazia Therapeutics Annual Reports 2023

69 Kazia Theraputics Limited Annual Report 2023 Chairman and CEO’s Letter Key Milestones Introduction to Kazia’s CEO Pipeline Review Environment, Society and Governance Financial Reports Level 1 Level 2 Level 3 Total Consolidated - 2022 restated $ $ $ $ Liabilities Contingent consideration - - 1,167,534 1,167,534 Total liabilities - - 1,167,534 1,167,534 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 18. The probabilities used fell in the range of 57% to 100% 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 Total Consolidated $ $ Balance at 1 July 2021 1,015,249 1,015,249 Losses recognised in profit and loss 152,287 152,287 Balance at 30 June 2022 1,167,536 1,167,536 Losses recognised in profit and loss 236,156 236,156 Balance at 30 June 2023 1,403,692 1,403,692 Note 25. 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 2023 2022 $ $ Short-term employee benefits 3,148,514 2,589,088 Post-employment benefits 149,626 115,950 Share-based payments 1,045,860 1,559,930 4,344,000 4,264,968 Please refer to Note 29 for other transactions with key management personnel and their related parties. Note 24. Fair value measurement continued