Fair value measurement

12 Months Ended

Jun. 30, 2023

Note 2

. Fair value measurement

Fair value hierarchy

The following tables detail the consolidated entity’s assets and liabilities, measured or disclosed at fair value, using a three level hierarchy, based on the lowest level of input that is significant to the entire fair value measurement, being:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly

Level 3: Unobservable inputs for the asset or liability


Consolidated - 2023	Level 1 A$’000		Level 2 A$’000		Level 3 A$’000		Total A$’000

Liabilities
Contingent Consideration		—		—		1,404		1,404

Total liabilities		—		—		1,404		1,404


Consolidated - 2022

Liabilities
Contingent Consideration		—		—		1,168		1,168

Total liabilities		—		—		1,168		1,168

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 license 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 1

. The probabilities used fell in the range of 57% to 60% 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 A$’000		Total A$’000
Consolidated
Balance at 1 July 2021		1,015		1,015
Losses recognized in profit or loss		153		153

Balance at 30 June 2022		1,168		1,168

Losses recognized in profit or loss		236		236

Balance at 30 June 2023		1,404		1,404