Announcement PDF Appendix 4D Half year report ASX Appendix 4D Half-Year Financial Report to 31 December 2023 1. Details of reporting period Name of Entity ABN Reporting Period Previous Corresponding Period 2. Race Oncology Limited (“the Company”) 61 149 318 749 31 December 2023 31 December 2022 Results for announcement to the market 31 December 2023 31 December 2022 Increase/ (decrease) Amount change $ - - - - Loss for the half-year (5,663,158) (4,411,726) 28.37% (1,251,432) Total net loss for the half-year attributable to members (5,663,158) (4,411,726) 28.37% (1,251,432) Key information Revenues from ordinary activities Amount Per Security Franked Amount Per Security Final Dividend Nil Nil Interim Dividend Nil Nil Previous Corresponding Period Nil Nil Record Date for Determining Entitlements Not Applicable For further information, refer to the review of operations contained in the directors’ report, which forms part of the attached condensed consolidated financial statements. 3. Net tangible asset backing Net tangible backing per ordinary security 4. 31 December 2023 31 December 2022 10.77 cents 17.07 cents Details of entities over which control has been gained or lost during the period N/A 5. Details of Dividends No dividend has been paid or recommended to be paid for the half-year ended 31 December 2023. Appendix 4D Page 1 Appendix 4D Half year report 6. Details of dividend reinvestment plans N/A 7 Details of associate and joint venture entities N/A 8. Foreign entities On 6 October 2017, the Company incorporated a new subsidiary in Belgium, (Race Oncology, Company Number 0682664917). There have been no signfiicant financial transactions through the subsidiary at 31 December 2023. 9. Audit This report has been based on accounts that have been subject to an audit review. There are no items of dispute with the auditor and the audit review is not subject to qualification. Authorised for release by the Board. Peter Smith Executive Director 28 February 2024 Appendix 4D Page 2 ASX: RAC H1 FY24 Report Financial statements for the half year ended 31 December 2023 At the heart of cancer care Race Oncology Limited ACN: 149 318 749 Contents For the Half Year Ended 31 December 2023 Financial Statements Directors' Report Auditor's Independence Declaration under Section 307C of the Corporations Act 2001 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Condensed Consolidated Statement of Financial Position Condensed Consolidated Statement of Changes in Equity Condensed Consolidated Statement of Cash Flows Notes to the Condensed Consolidated Financial Statements Directors' Declaration Independent Auditor's Review Report Page 1 6 7 8 9 10 11 24 25 Directors' Report 31 December 2023 Your Directors present the financial report of the the Company for the half year ended 31 December 2023. Directors The names and the particulars of the Directors of the Company during the half year and to the date of this report are: Name Status Appointed Mary Harney Non-Executive Chair (Independent) 8 February 2021 Philip Lynch Non-Executive Director 1 June 2020 John Cullity Non-Executive Director 6 April 2018 Board and Executive (Resigned 21 August 2023) Daniel Tillett Chief Executive Officer 22 November 2023 Peter Smith Executive Director 28 June 2023 Damian Clarke-Bruce Managing Director and Chief Executive Officer 1 February 2023 (Resigned 21 August 2023) Company Secretary Peter Webse Review of operations Summary On 10 July 2023, Race executed an exclusive licence agreement with City of Hope to access intellectual property identifying bisantrene as a potent inhibitor of the human fat mass and obesity associated protein (FTO). The Agreement provides Race’s exclusive access to intellectual property pertaining to bisantrene. On 12 July 2023, Race announced that it had entered into an agreement with the leading global contract development and manufacturing organisation (CDMO), Ardena Holding NV, to provide additional current Good Manufacturing Practice (cGMP) manufacturing capability for Race’s proprietary intravenous formulation of bisantrene, RC220. On 13 July 2023, Race received a $1.66 million Research & Development Tax Incentive Refund from the Australian Taxation Office in relation to a successful overseas finding in respect of qualifying R&D activities for the financial year ended 30 June 2022. This refund is in addition to a $1.48 million Research & Development Tax Incentive Refund received for FY2022 Australian activities in March 2023 (ASX announcement: 27 March 2023). On 8 August 2023, Race released a strategic update, seeking to maximise the potential of bisantrene, leveraging its unique mechanisms of anticancer and cardioprotection to drive commercial partnering and collaboration potential. On 22 August 2023, Race announced management changes with Mr Damian Clarke-Bruce resigning as CEO & Managing Director and Dr John Cullity retiring from the Race Board. Dr Pete Smith was appointed an Executive Director, and Dr Daniel Tillett was engaged as a consultant. The Race Board also announced a strategic review to ensure delivery of research and clinical milestones within current financial resources. On 14 September 2023, Race and Biosynergy Partners LLC mutually agreed to terminate the 2018 service agreement (ASX announcement: 1 November 2018). The service agreement termination clauses conclude on 14 September 2024. 1 Directors' Report 31 December 2023 Operations On 21 September 2023, Race announced preclinical results which showed bisantrene was highly active as a single agent against 113 of 143 human tumour cell lines, representing a broad cross-section of the most common haematological and solid organ cancers. In combination with clinically relevant concentrations of doxorubicin, bisantrene was also found to significantly enhance the killing of most cancer cell lines screened. On 27 September 2023, Race announced the successful production of its first batch of cGMP quality active pharmaceutical ingredient sufficient for RC220 cGMP drug product manufacturing and near-to mid-term clinical trials. On 5 October 2023, Race announced that it had contracted Attentive Science and Agilex Biolabs to complete GLP toxicology and safety pharmacology studies required to support human clinical trials with RC220. Final reporting is expected end of Q2 CY2024, representing a significant milestone for the commercial development of RC220, and enabling RC220 to be used in clinical trials. On 17 October 2023, Race announced that it had successfully completed a series of preclinical animal and laboratory studies showing that Race’s novel bisantrene formulation, RC220 (ASX Announcement: 28 September 2022), prevents drug precipitation (crystallisation) and phlebitis (vein inflammation or damage) when infused into peripheral veins. These studies, performed at Pharmaron (CA, USA) and by Race scientists based at the University of Wollongong (Australia), used in vivo (animal) and in vitro (laboratory) models routinely accepted by regulators while assessing intravenous infusion (IV) safety. On 6 November 2023, Race shared details of interim clinical results from an ongoing investigator-initiated Phase 2 trial of bisantrene in combination with fludarabine and clofarabine in relapsed or refractory Acute Myeloid Leukaemia (R/R AML) patients at the prestigious American Society of Hematology (ASH) 65th Annual Conference held from 9-12 December 2023. In this trial, six of the 15 evaluable patients (40%) responded to Bis/Clo/Flo treatment (five complete responses, one partial response), with three of the clinical responders having active extramedullary disease (EMD). Five of the six treatmentresponsive patients were able to be bridged to a stem cell transplant (SCT) within one to three months of treatment. On 9 November 2023, Race announced that a Certificate of Testing (CoT) had been issued by Societal CDMO (San Diego, USA) for the first engineering batch of RC220, confirming that the drug product meets manufacturing quality specifications. The CoT clears RC220 for use in Good Laboratory Practice (GLP) toxicology and safety pharmacology studies (ASX Announcement: 5 October 2023) and significantly de-risks the RC220 current Good Manufacturing Practice (cGMP) campaign underway at Ardena (ASX Announcement: 12 July 2023). On 22 November 2023, Race announced Dr Daniel Tillett had been appointed full-time Chief Executive Officer, with immediate effect. Dr Tillett requested that 50% of his salary package be provided as options with an exercise price of $4.25, above the Race all-time high share price. On 25 November 2023, Race announced an updated strategic plan, designed to move its lead asset, the reformulated bisantrene, RC220, through clinical studies that aim to build significant shareholder value within the constraints of current capital market conditions. This updated strategy focused on clinical development within Australia and is designed to establish anthracycline cardioprotection and the clinical effects on the m6A RNA pathway of RC220 in a range of solid tumours. On 22 November 2023, Race announced a pro-rata non-renounceable entitlement offer of one (1) loyalty bonus option (Bonus Option) for every twenty (20) Shares held by those Shareholders registered at the Record Date (Bonus Options Offer); and (b) a further offer to Eligible Option holders of three (3) Options (Piggyback Options) for every one (1) Bonus Option exercised prior to the Bonus Option Expiry Date (Piggyback Options Offer). These options aim to reward loyal shareholders and raise up to $36.6 million to fund future clinical activities in cardioprotection, m6A RNA & AML. 2 Directors' Report 31 December 2023 Operations (continued) On 13 December 2023, Race shared the poster of the Phase 2 R/R AML clinical data on bisantrene in combination with clofarabine and fludarabine presented at the American Society of Hematology 65th Annual Meeting by Arnon Nagler of the Sheba Medical Centre, Israel. On 29 December 2023, Race provided an end of year update of clinical and preclinical activities and outlined expected news for 2024. Corporate On 21 August 2023, 755,671 options issued to Damian Clark-Bruce lapsed due to end of employment. On 1 November 2023, the Company issued 1,116,083 unlisted employee options, with an exercise price of $1.95 and expiry date of 1 November 2028. On 1 November 2023, the Company issued 489,408 unlisted employee options, with an exercise price of $2.23 and expiry date of 1 November 2028. On 21 November 2023, the Company issued 166,450 unlisted employee options, with an exercise price of $2.92 and expiry date of 31 January 2028. On 21 November 2023, the Company issued 308,247 unlisted employee options, with an exercise price of $1.32 and expiry date of 24 October 2028. On 29 November 2023, the Company issued 1,534,712 unlisted employee options, with an exercise price of $1.45 and expiry date of 29 November 2028. On 29 November 2023, the Company issued 3,061,101 unlisted employee options, with an exercise price of $4.25 and expiry date of 29 November 2028. On 1 December 2023, the Company issued 139,516 unlisted employee options, with an exercise price of $1.39 and expiry date of 1 December 2028. On 1 December 2023, the Company issued 440,019 unlisted employee options, with an exercise price of $1.39 and expiry date of 1 December 2028. Financial Performance The loss for the six months ended 31 December 2023 was $5,663,158 or $5,378,844 excluding share-based payments (a non-cash expense). At 31 December 2023, the Company had $13,715,447 in cash reserves (compared with $21,520,368 at 30 June 2023). Outlook Preclinical Activities Progress of the cGMP RC220 manufacture at Ardena remains on track with release expected in Q1 2024, enabling clinical trials to begin once the non-clinical GLP toxicology program is finalised. 3 Directors' Report 31 December 2023 Outlook (continued) Non-clinical Toxicology Program Race announced that it had signed contracts with Attentive Science (USA) and Agilex Biolabs (Australia) to complete a package of Good Laboratory Practice (GLP) toxicology and safety pharmacology studies (ASX Announcement: 5 October 2023). These studies are required to support human clinical trials of Race’s flagship bisantrene formulation for peripheral infusion, RC220. Extensive historical and modern clinical data has been collected around the safety and efficacy of bisantrene in humans. While RC220 contains the same active pharmaceutical ingredient as previous formulations, it is considered a new ‘drug product’ by regulators. All new drug products must pass a panel of toxicology and safety pharmacology preclinical studies to: (i) show that they are safe for use in humans and (ii) establish a safe starting dose for Phase I dose-escalation studies. The data for RC220 will be used in all regulatory submissions requesting approval for its use in clinical trials, including any US FDA Investigational New Drug (IND) applications. The non-clinical data program is progressing well and remains on track to be finalised by late Q2 2024. Clinical Activities Interim results were released from an ongoing investigator-initiated Phase 2 trial of bisantrene in combination with fludarabine and clofarabine in relapsed or refractory acute myeloid leukaemia (R/R AML) patients. The trial is running at the Sheba Medical Centre, Israel, under the supervision of key opinion leader, Professor Arnon Nagler. The trial is continuing to recruit the final two patients and shareholders can expect to be updated when the final patient finishes treatment (expected during H1 2024). It is expected the study will be published in a high impact peer-reviewed journal in 2024. Significant progress has been made towards initiating the Australian Phase 1a/b trial in H2 2024 exploring the use of bisantrene as a cardioprotective anticancer agent for use in patients where an anthracycline treatment is indicated. Strong clinical interest has been fielded from a range of Australian oncologists interested in participating in the trial. Shareholders can expect regular updates on contract research organisation selection, investigator and site selection, human ethics and governance approvals, along with first patient treatment in 2024. Race has received a proposal from an experienced haematologist to undertake an investigator-initiated Phase 1/2 trial of RC220 in combination with oral decitabine in Australia, building on the preclinical mouse work untaken by Race’s collaborators at the University of Newcastle and the recent Sheba Phase 2 AML results presented at the 2023 American Society of Hematology (ASH) meeting. This trial offers Race a low-cost clinical proof-of-concept of bisantrene in AML compatible with modern clinical practice. Initiation of this trial is contingent on funding being available, which may occur via the previously announced bonus option issue. 4 Directors' Report 31 December 2023 Outlook (continued) Significant events after the balance sheet date Between 1 January 2024 and the date of this report, 212,106 bonus options had been exercised, contributing an $159,080 to program advancement and the issue of 636,318 piggyback options. On 12 January 2024, Borje Andersson received 420,000 ordinary shares following the exercise of his 420,000 options at an exercise price of $0.12 per option. On 27 February 2024, the Company announced the receipt of a $4,003,470.33 R&D Tax Incentive Refund from the Australian Taxation Office. Except for the above, no other matters or circumstances have arisen since the end of the financial year which significantly affected or could significantly affect the operations of the Company, the results of those operations or the state of affairs of the Company in future financial years. Auditor's independence declaration The auditor's independence declaration is included on page 5 of the financial report. Signed in accordance with a resolution of directors made pursuant to s306(3) of the Corporations Act 2001. On behalf of the Directors Executive Director Sydney, Australia Dated: 28 February 2024 5 To the Board of Directors AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001 As lead audit Director for the review of the financial statements of Race Oncology Limited for the half year ended 31 December 2023, I declare that to the best of my knowledge and belief, there have been no contraventions of: • the auditor independence requirements of the Corporations Act 2001 in relation to the review; and • any applicable code of professional conduct in relation to the review. Yours Faithfully, HALL CHADWICK WA AUDIT PTY LTD Dated this 28th day of February 2024 Perth, Western Australia D M BELL CA Director Race Oncology Limited ACN: 149 318 749 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the Half Year Ended 31 December 2023 Note Revenue Interest received Other income 31 December 2023 31 December 2022 $ $ 461,428 4,003,470 167,684 1,321,999 (17,027) (67,313) (140,598) (305,501) (1,844,129) (173,605) (195,158) (428,015) (6,104,810) (284,314) (52,912) (514,674) (32,815) (50,549) (140,598) (112,309) (1,005,195) (395,682) (96,667) (207,970) (3,167,091) (340,134) (20,355) (332,044) Loss before income tax Income tax expense (5,663,158) - (4,411,726) - Loss for the period (5,663,158) (4,411,726) 3,797 (1,327) (5,659,361) (4,413,053) (3.46) (2.74) 2 Administrative expenses Accounting and audit fees Amortisation Business development and marketing R & D manufacturing and distribution Corporate advice fees Director fees Employee benefits expense Research and development expense Share based payment expenses Share registry expense Other expenses Items that may be reclassified subsequently to profit or loss Foreign currency translation (net of tax) Total comprehensive loss for the period net of tax Basic and diluted loss per share (cents per share) 3 7 The accompanying notes form part of these condensed consolidated financial statements. 7 Race Oncology Limited ACN: 149 318 749 Condensed Consolidated Statement of Financial Position As of 31 December 2023 Note 31 December 2023 30 June 2023 $ $ ASSETS CURRENT ASSETS Cash and cash equivalents Trade and other receivables Other assets 13,715,447 4,081,989 317,188 21,520,368 1,704,099 320,314 TOTAL CURRENT ASSETS 18,114,624 23,544,781 3,268 2,952,557 3,093,155 TOTAL NON-CURRENT ASSETS 2,955,825 3,093,155 TOTAL ASSETS 21,070,449 26,637,936 526,755 111,997 1,071,866 79,929 TOTAL CURRENT LIABILITIES 638,752 1,151,795 TOTAL LIABILITIES 638,752 1,151,795 20,431,697 25,486,141 62,029,758 7,663,919 (49,261,980) 61,709,155 7,375,808 (43,598,822) 20,431,697 25,486,141 NON-CURRENT ASSETS Property, plant and equipment Intangible assets LIABILITIES CURRENT LIABILITIES Trade and other payables Employee benefits 3 4 NET ASSETS SHAREHOLDERS' EQUITY Issued and Unissued Capital Reserves Accumulated losses TOTAL EQUITY 5 6 The accompanying notes form part of these condensed consolidated financial statements. 8 Race Oncology Limited ACN: 149 318 749 Condensed Consolidated Statement of Changes in Equity For the Half Year Ended 31 December 2023 _Issued Capital Reserves $ $ AccumulatedLosses Balance at 1 July 2023 Total $ $ 61,709,155 - 7,375,808 3,797 (43,598,822) (5,663,158) - 25,486,141 (5,663,158) 3,797 - 3,797 (5,663,158) (5,659,361) 320,603 - 589,928 (305,614) - 320,603 589,928 (305,614) Balance at 31 December 2023 62,029,758 7,663,919 (49,261,980) 20,431,697 Balance at 1 July 2022 62,016,810 - 7,765,996 (1,327) (33,675,397) (4,411,726) - 36,107,409 (4,411,726) (1,327) - (1,327) (4,411,726) (4,413,053) Transactions with owners in their capacity as owners and other transfers Share based payments Shares issued on exercise of options Shares bought back during the period 196,003 (1,282,552) 340,134 (196,003) - - 340,134 (1,282,552) Balance at 31 December 2022 60,930,261 7,908,800 (38,087,123) 30,751,938 Loss attributable to members Other comprehensive income for the period Total comprehensive income for the period Transactions with owners in their capacity as owners and other transfers Shares issued on exercise of options Share based payments Lapse of options Loss attributable to members Other comprehensive income for the period Total comprehensive income for the period The accompanying notes form part of these condensed consolidated financial statements. 9 Race Oncology Limited ACN: 149 318 749 Condensed Consolidated Statement of Cash Flows For the Half Year Ended 31 December 2023 31 December 2023 31 December 2022 $ $ CASH FLOWS FROM OPERATING ACTIVITIES: Interest received Government grants Payments for research and development Payments for business development and marketing Payments for manufacturing and distribution Payments to suppliers and employees 461,428 1,657,956 (6,465,193) (289,830) (1,856,942) (1,662,024) 167,684 (3,422,866) (134,951) (1,045,816) (1,431,297) Net cash used in operating activities (8,154,605) (5,867,246) - - CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from the issue of shares on exercise of options Share buy-back payment 320,603 - (1,282,552) Net cash provided by/(used in) financing activities 320,603 (1,282,552) Net decrease in cash and cash equivalents held Foreign currency translation Cash at beginning of the period (7,834,002) 29,081 21,520,368 (7,149,798) (17,388) 33,540,789 Cash at end of the period 13,715,447 26,373,603 Note CASH FLOWS FROM INVESTING ACTIVITIES: Net cash provided by/(used in) investing activities The accompanying notes form part of these condensed consolidated financial statements. 10 Race Oncology Limited ACN: 149 318 749 Notes to the Condensed Consolidated Financial Statements For the Half Year Ended 31 December 2023 1 Statement of Significant Accounting Policies (a) Statement of compliance The half-year financial statements are general purpose financial statements prepared in accordance with the requirements of the Corporations Act 2001, applicable accounting standards including AASB 134 ‘Interim Financial Reporting’, Accounting Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board (‘AASB’). Compliance with AASB 134 ensures compliance with IAS 34 ‘Interim Financial Reporting’. The interim financial report was issued on 28 February 2024 by the directors of the Company. The half-year report does not include full disclosures of the type normally included in an annual financial report. Therefore, it cannot be expected to provide as full an understanding of the financial performance, financial position and cash flows of the Company as in the full financial report. It is recommended that this half-year financial report be read in conjunction with the annual financial report for the year ended 30 June 2023 and any public announcements made by Race Oncology during the half-year in accordance with continuous disclosure requirements arising under the Corporations Act 2001. (b) Basis of preparation The condensed financial statements have been prepared on a historical cost basis. Cost is based on the fair value of the consideration given in exchange for assets. The company is domiciled in Australia and all amounts are presented in Australian dollars, unless otherwise noted. The financial statements have been prepared on a going concern basis. The accounting policies and methods of computation adopted in the preparation of the half-year financial report are consistent with those adopted and disclosed in the Company’s 2023 annual financial report for the financial year ended 30 June 2023 except for the Standards and Interpretations described below. These accounting policies are consistent with Australian Accounting Standards and with International Financial Reporting Standards. (c) Intangible assets Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses. Internally generated intangibles, excluding capitalised development costs, are not capitalised and the related expenditure is reflected in profit or loss in the period in which the expenditure is incurred. The useful lives of Intangible assets are assessed as either finite or indefinite. Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortisation period or method, as appropriate, and are treated as changes in accounting estimates and adjusted on a prospective basis. The amortisation expense on intangible assets with finite lives is recognised in the statement of comprehensive income. Intangible assets with indefinite useful lives are not amortised, but are tested for impairment annually, either individually or at the cash-generating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis. 11 Race Oncology Limited ACN: 149 318 749 Notes to the Condensed Consolidated Financial Statements For the Half Year Ended 31 December 2023 1 Statement of Significant Accounting Policies (c) Intangible assets (continued) Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the statement of comprehensive income when the asset is derecognised. Research and development costs Research costs are expensed as incurred. Development expenditures on an individual project are recognised as an intangible asset when the Company can demonstrate: • The technical feasibility of completing the intangible asset so that the asset will be available for use or sale • Its intention to complete and its ability to use or sell the asset • How the asset will generate future economic benefits • The availability of resources to complete the asset • The ability to measure reliably the expenditure during development • The ability to use the intangible asset generated Following initial recognition of the development expenditure as an asset, the asset is carried at cost less any accumulated amortisation and accumulated impairment losses. Amortisation of the asset begins when development is complete and the asset is available for use. It is amortised over the period of expected future benefit. During the period of development, the asset is tested for impairment annually. Patents The Company made upfront payments to purchase patents. The patents have been granted for a period of 20 years by the relevant government agency. As a result, those patents are amortised on a straight-line basis over the period of the patent. (d) New and Amended Standards adopted by the Group The Group has considered the implications of new or amended Accounting Standards which have become applicable for the current annual financial reporting period beginning on or after 1 July 2023. It has been determined by the Group that there is no impact, material or otherwise, of the new or amended Accounting Standards and therefore no changes to Group accounting policies. No retrospective change in accounting policy of material reclassification has occurred during the half year. 12 Race Oncology Limited ACN: 149 318 749 Notes to the Condensed Consolidated Financial Statements For the Half Year Ended 31 December 2023 1 Statement of Significant Accounting Policies (e) Equity-settled compensation The consolidated entity operates an employee share and option plan. Share-based payments to employees are measured at the fair value of the instruments issued and amortised over the vesting periods. The fair value of performance right options is determined using the satisfaction of certain performance criteria (Performance Milestones). The number of shares option and performance rights expected to vest is reviewed and adjusted at the end of each reporting period such that the amount recognised for services received as consideration for the equity instruments granted is based on the number of equity instruments that eventually vest. The fair value is determined using either a black-scholes or monte-carlo simulation model depending on the type of share-based payment. (f) Segment Information AASB 8 requires operating segments to be identified on the basis of internal reports about components of the Company that are regularly reviewed by the chief operating decision maker in order to allocate resources to the segment and to assess its performance. Identification of reportable segments The consolidated entity has identified its operating segments based on the internal reports that are reviewed and used by the Board of Directors (the chief operating decision makers) in assessing performance and in determining the allocation of resources. During the year, the consolidated entity is operated in two segments, being research into oncology drug, bisantrene and the manufacturing and distribution of the drug for clinical trials. Accordingly, the financial information reported elsewhere in th