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Financial assets and liabilities (Tables)

3 Months Ended

Sep. 30, 2022

Disclosure Of Financial Assets And Liabilities [Abstract]

The Group holds the following financial instruments:

Financial assets (in U.S. dollars, in thousands)	Notes	Assets at FVOCI⁽¹⁾		Assets at FVTPL⁽²⁾		Assets at amortized cost		Total
As of September 30, 2022
Cash & cash equivalents	5(a)		—		—		85,502		85,502
Trade & other receivables	5(b)		—		—		3,863		3,863
Financial assets at fair value through other comprehensive income			1,843		—		—		1,843
Other non-current assets			—		—		1,902		1,902
			1,843		—		91,267		93,110
As of June 30, 2022
Cash & cash equivalents	5(a)		—		—		60,447		60,447
Trade & other receivables	5(b)		—		—		4,403		4,403
Financial assets at fair value through other comprehensive income			1,758		—		—		1,758
Other non-current assets			—		—		1,930		1,930
			1,758		—		66,780		68,538

(1)	Fair value through other comprehensive income

(2)	Fair value through profit or loss

Financial liabilities (in U.S. dollars, in thousands)	Notes	Liabilities at FVOCI⁽¹⁾		Liabilities at FVTPL⁽²⁾		Liabilities at amortized cost		Total
As of September 30, 2022
Trade and other payables	5(c)		—		—		17,663		17,663
Borrowings	5(d)		—		—		99,675		99,675
Contingent consideration	5(e)(iii)		—		21,501		—		21,501
Warrant liability	5(e)(vi)		—		2,586		—		2,586
			—		24,087		117,338		141,425
As of June 30, 2022
Trade and other payables	5(c)		—		—		23,079		23,079
Borrowings	5(d)		—		—		96,634		96,634
Contingent consideration	5(e)(iii)		—		23,284		—		23,284
Warrant liability	5(e)(vi)		—		2,185		—		2,185
			—		25,469		119,713		145,182

(1)	Fair value through other comprehensive income

(2)	Fair value through profit or loss

Summary of Cash and Cash Equivalents

a.	Cash and cash equivalents

	As of September 30,		As of June 30,
(in U.S. dollars, in thousands)	2022		2022
Cash at bank		85,112		60,034
Deposits at call⁽¹⁾		390		413
		85,502		60,447

(1)	As of September 30, 2022 and June 30, 2022, interest-bearing deposits at call include amounts of $0.4 million and $0.4 million, respectively, held as security and restricted for use.

Summary of Trade and Other Receivables and Prepayments

b.	Trade and other receivables and prepayments

(i) Trade and other receivables

	As of September 30,		As of June 30,
(in U.S. dollars, in thousands)	2022		2022
Trade debtors		1,443		2,224
Foreign withholding tax recoverable		471		471
U.S. Tax credits		1,473		1,473
Other recoverable taxes (Goods and services tax and value-added tax)		476		235
Trade and other receivables		3,863		4,403

(ii) Prepayments

	As of September 30,		As of June 30,
(in U.S. dollars, in thousands)	2022		2022
Clinical trial research and development expenditure		1,283		1,313
Prepaid insurance and subscriptions		1,051		2,420
Other		1,261		1,254
Prepayments		3,595		4,987

Summary of Trade and Other Payables

c.	Trade and other payables

	As of September 30,		As of June 30,
(in U.S. dollars, in thousands)	2022		2022
Trade payables and other payables		17,663		23,079
Trade and other payables		17,663		23,079

Summary of Borrowings

d.	Borrowings

	As of September 30,			As of June 30,
(in U.S. dollars, in thousands)	2022			2022
Borrowings
Secured liabilities:
Borrowing arrangements		81,919			81,919
Less: transaction costs		(8,280	)		(8,247	)
Amortization of carrying amount, net of payments made		26,036			22,962
		99,675			96,634

	As of September 30,			As of June 30,
(in U.S. dollars, in thousands)	2022			2022
Borrowings
Current
Borrowings - NovaQuest		816			372
Borrowings - Oaktree		4,673			4,645
		5,489			5,017
Non-current
Borrowings - NovaQuest		49,511			47,898
Borrowings - Oaktree		44,675			43,719
		94,186			91,617
		99,675			96,634

Summary of Net Debt

(iii) Net Debt Reconciliation

	As of September 30,			As of June 30,
(in U.S. dollars, in thousands)	2022			2022
Cash and cash equivalents		85,502			60,447
Borrowings		(99,675	)		(96,634	)
Lease liabilities		(9,957	)		(10,271	)
Warrant liability		(2,586	)		(2,185	)
Net Debt⁽¹⁾		(26,716	)		(48,643	)

Cash and cash equivalents		85,502			60,447
Gross debt - fixed interest rates		(109,632	)		(106,905	)
Warrant liability		(2,586	)		(2,185	)
Net Debt⁽¹⁾		(26,716	)		(48,643	)

(1)	Net debt amount includes leases and borrowing arrangements.

Summary of Net Debt Reconciliation

	Liabilities from financing activities												Other assets
(in U.S. dollars, in thousands)	Borrowings			Leases			Warrant liability			Sub-total			Cash and cash equivalents			Total
Net Debt as at June 30, 2022		(96,634	)		(10,271	)		(2,185	)		(109,090	)		60,447			(48,643	)
Cash Flows⁽¹⁾		1,240			811			—			2,051			25,808			27,859
Remeasurement adjustments		54			—			(401	)		(347	)		—			(347	)
Other Changes⁽²⁾		(4,335	)		(633	)		—			(4,968	)		—			(4,968	)
Acquisition – leases		—			—			—			—			—			—
Foreign exchange adjustments		—			136			—			136			(753	)		(617	)
Net Debt as at September 30, 2022		(99,675	)		(9,957	)		(2,586	)		(112,218	)		85,502			(26,716	)

(1)	Cash flows include the payments of borrowings, lease liabilities and interest which are presented as financing cash flows in the statement of cash flows.

(2)	Other changes include modification of leases and accrued interest expenses for borrowings and leases.

Summary of Financial Assets and Liabilities Measured and Recognized at Fair Value

The following table presents the Group's financial assets and financial liabilities measured and recognized at fair value as of September 30, 2022 and June 30, 2022 on a recurring basis, categorized by level according to the significance of the inputs used in making the measurements:

As of September 30, 2022
(in U.S. dollars, in thousands)	Notes	Level 1		Level 2		Level 3		Total
Financial Assets
Financial assets at fair value through other comprehensive income:
Equity securities - biotech sector			—		—		1,843		1,843
Total Financial Assets			—		—		1,843		1,843

Financial Liabilities
Financial liabilities at fair value through profit or loss:
Contingent consideration	5(e)(iii)		—		—		21,501		21,501
Warrant liabilities	5(e)(vi)		—		—		2,586		2,586
Total Financial Liabilities			—		—		24,087		24,087

As of June 30, 2022
(in U.S. dollars, in thousands)	Notes	Level 1		Level 2		Level 3		Total
Financial Assets
Financial assets at fair value through other comprehensive income:
Equity securities - biotech sector			—		—		1,758		1,758
Total Financial Assets			—		—		1,758		1,758

Financial Liabilities
Financial liabilities at fair value through profit or loss:
Contingent consideration	5(e)(iii)		—		—		23,284		23,284
Warrant liabilities	5(e)(vi)		—		—		2,185		2,185
Total Financial Liabilities			—		—		25,469		25,469

Summary of Changes in Fair Value of Level 3 Instruments

The following table presents the changes in level 3 instruments for the three months ended September 30, 2022 and the year ended June 30, 2022.

(in U.S. dollars, in thousands)	Contingent consideration provision
Opening balance - July 1, 2021		25,409
Amount used during the period		(1,212	)
Charged/(credited) to consolidated income statement:
Remeasurement⁽¹⁾		(913	)
Closing balance - June 30, 2022		23,284

Opening balance - July 1, 2022		23,284
Reclassification during the period		2,685
Charged/(credited) to consolidated income statement:
Remeasurement⁽²⁾		(4,468	)
Closing balance - September 30, 2022		21,501

(1)

In the year ended June 30, 2022 a gain of $0.9 million was recognized on the remeasurement of contingent consideration pertaining to the acquisition of assets from Osiris. This remeasurement was a net result of changing the key assumptions of the contingent consideration valuation such as developmental timelines, market growth and the increase in valuation as the time period shortens between the valuation date and the potential settlement dates of contingent consideration.

(2)

In the three months ended September 30, 2022 a gain of $4.5 million was recognized on the remeasurement of contingent consideration pertaining to the acquisition of assets from Osiris. This gain was a net result of changing the key assumptions of the contingent consideration valuation such as probability of payment, development timelines and the increase in valuation as the time period shortens between the valuation date and the potential settlement dates of contingent consideration.

Summary of Quantitative Information About the Significant Unobservable Inputs Used in Level 3 Fair Value Measurements

The following table summarizes the quantitative information about the significant unobservable inputs used in level 3 fair value measurements:

Range of inputs

(weighted average)

(in U.S. dollars, in thousands,

except percent data)

Fair value

as of

September 30,

Fair value

as of

June 30,

Valuation

Unobservable

Year Ended

September 30,

Year Ended

June 30,

Relationship of

unobservable inputs to

Description

2022

technique

inputs⁽¹⁾

2022

fair value

Contingent consideration provision

21,501

23,284

Discounted cash flows

Risk adjusted

discount rate

11%-13%

(12.5%)

11%-13%

(12.5%)

Three months ended 30 September, 2022: A change in the discount rate by 0.5% would increase/decrease the fair value by 0.1%.

Year ended 30 June, 2022: A change in the discount rate by 0.5% would increase/decrease the fair value by 0.2%.

Expected unit

sales price

Various

Three months ended 30 September, 2022: A change in the price assumptions by 10% would increase/decrease the fair value by 1%.

Year ended 30 June, 2022: A change in the price assumptions by 10% would increase/decrease the fair value by 2%.

Expected sales

volumes

Various

Three months ended 30 September, 2022: A change in the volume assumptions by 10% would increase/decrease the fair value by 1%.

Year ended 30 June, 2022: A change in the volume assumptions by 10% would increase/decrease the fair value by 2%.

Probability of success and payment

Various

Three months ended 30 September, 2022: A change in the probability of success and payment assumptions by 10% and 20% would increase/decrease the fair value by 10.5% and 21.0%, respectively.

Year ended 30 June, 2022: A change in the probability of success and payment assumptions by 10% and 20% would increase/decrease the fair value by 8.6% and 17.2%, respectively.

(1)	There were no significant inter-relationships between unobservable inputs that materially affect fair values.

Disclosure of Detailed Information About Valuation Processes of Contingent Consideration at Fair Value Explanatory

	As of September 30,		As of June 30,
The fair value of contingent consideration (in U.S. dollars, in thousands)	2022		2022
Fair value of cash or stock payable, dependent on achievement of future late-stage clinical or regulatory targets		17,650		17,827
Fair value of royalty payments from commercialization of the intellectual property acquired		3,851		5,457
		21,501		23,284

Summary of Warrant Liability

(in U.S. dollars, in thousands)	As of September 30,		As of June 30,
Warrant liability	2022		2022
Opening balance		2,185		—
Warrants fair value at grant date - November 19, 2021		—		8,081
Remeasurement of warrant liability		401		(5,896	)
Closing Balance		2,586		2,185

Summary of Fair Value of Warrants

The following assumptions were based on observable market conditions that existed at the issue date and as of September 30, 2022.

	As of September 30,		As of June 30,
Assumption	2022		2022		Rationale
Share Price	$2.55		$2.22		Closing share price on valuation date from external market source
Exercise Price	$7.26		$7.26		As per subscription agreement
Expected Term	6 years 3 months		6 years 6 months		As per subscription agreement
Dividend Yield	0%		0%		Based on Company’s nil dividend history
Expected Volatility	83.19%		83.22%		Based on historical volatility data for the Company
Risk Free Interest Rate	3.99%		3.08%		Based on the closing U.S treasury issued bonds with tenors approximating the expected term of the warrants
Fair value per warrant	$1.4613		$1.2350		Determined using Black Scholes-valuation model with the inputs above
Fair value	$	2,586,046	$	2,185,476	Fair value of 1,769,669 warrants as at grant date and as of September 30, 2022