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RNS Number : 2308J LungLife AI, INC 04 April 2024
4 April 2024
LungLife AI, Inc.
(the "Company" or "LungLife")
Preliminary audited results for year ended 31 December 2023
LungLife AI (AIM: LLAI), a developer of clinical diagnostic solutions for lung
cancer, announces its audited preliminary results for the year ended 31
December 2023.
Summary and Highlights for the year and post-period end:
● Cash as of 31 December 2023 of $2.83m (2022: $8.01m).
● Loss before tax of $5.41m (2022: $7.60m).
● Adjusted EBITDA(1) loss of $5.19m (2022: $6.84m).
● Effective 1 January 2023, LungLB PLA code 0317U was added to Medicare's
Clinical Laboratory Fee Schedule ("CLFS") at a National price of $2,030 per
test.
● LungLife's cost effectiveness analysis was published in the Journal of Medical
Economics (https://www.tandfonline.com/doi/full/10.1080/13696998.2023.2182493)
, providing evidence that LungLB is cost effective when used to evaluate
indeterminate lung nodules when integrated into the current clinical care
pathway. This is a key publication for payors, including Medicare, when
considering coverage for LungLB.
● The Company's lead-in multi-site validation of LungLB was published in
Nature-Springer's BMC Pulmonary Medicine
(https://bmcpulmmed.biomedcentral.com/articles/10.1186/s12890-023-02433-4) ,
demonstrating high performance in smaller lung nodules and outperforming PET
scan and Mayo Nodule Calculator tools, and indicating the potential to reduce
delays in treatment from earlier detection using LungLB.
● Successful clinical validation of the Company's LungLB test following
conclusion of the multi-site validation trial with a positive predictive value
("PPV") of 81% for those indeterminate nodules less than 15mm in size and
outperformed PET scan and Mayo Nodule Calculator tools, replicated the
findings from the lead-in validation study.
● In March 2024, the Company raised gross proceeds of $2.28m (GBP1.81m) from the
issue of 5,172,621 shares at 35 pence.
Commenting, Paul Pagano, Chief Executive Officer of LungLife, said: "2023 was
a year of considerable achievement culminating in the conclusion of our
multi-site clinical validation study, which was the primary objective at our
IPO. A positive predictive value of over 80% in smaller indeterminate nodules
is significant. This is where physicians consistently indicate the greatest
unmet need and where currently available tools fall short.
"In March 2024 we concluded our fund raising to commence the commercialisation
of our test. This enables us to initiate our Early Access Program, submit
forms to MolDX for technical assessment for Medicare coverage consideration,
and continue other matters necessary for commercialisation. We have also
started the process of considering all strategic options to get the LungLB
test into the hands of patients who need it most.
"Our revised cash runway to April 2025 has required significant cost
reductions, the largest being to headcount and salaries for the executive
team. We are now a smaller team focussed on the key commercialisation
activities. Those who have left the Company played an important role in
delivering our achievements to date and on behalf of the whole Board, I would
like to thank them for their efforts."
For further information please contact:
LungLife AI, Inc. www.lunglifeai.com (https://www.lunglifeai.com/)
Paul Pagano, CEO Via Walbrook PR
David Anderson, CFO
Investec Bank plc (Nominated Adviser & Broker) Tel: +44 (0)20 7597 5970
Virginia Bull / Cameron MacRitchie / Lydia Zychowska
Goodbody (Joint Broker) Tel: +44 (0) 20 3841 6208
Tom Nicholson / Cameron Duncan / Will Hall
Walbrook PR Limited Tel: +44 (0)20 7933 8780 or LungLifeAI@walbrookpr.com
(mailto:LungLifeAI@walbrookpr.com)
Stephanie Cuthbert / Alice Woodings / Phillip Marriage Mob: 07980 541 893 / 07407 804 654 / 07867 984 082
(1) Earnings before interest, tax, depreciation and amortisation, adjusted to
exclude exceptional items, share based payments and other operating income.
About LungLife
LungLife AI is a developer of clinical diagnostic solutions designed to make a
significant impact in the early detection of lung cancer, the deadliest cancer
globally. Using a minimally invasive blood draw, the Company's LungLB® test
is designed to deliver additional information to clinicians who are evaluating
indeterminate lung nodules. For more information visit www.lunglifeai.com
(http://www.lunglifeai.com)
Our Purpose is to be a driving force in the early detection to lung cancer.
And our Vision is to invert the 20:80 ratio such that in years to come at
least 80% of lung cancer is detected early.
Chairman's Statement
I am delighted to report on the Company's results for the year ended 31
December 2023. We have continued to deliver on the Company's objectives and
remain committed to creating shareholder value as we proceed with the aim of
being a driving force in the early detection of lung cancer through the
completion of our LungLB® test multi-centre clinical validation study.
LungLB® test
According to the World Health Organization, over 2.2 million new cases of lung
cancer were diagnosed in 2020 and approximately 1.8 million deaths from lung
cancer were recorded in 2020 globally. Nearly 80% of all lung cancers in the
United States are diagnosed in later stages when survival rates are low
because the options for curative treatment are then limited. This is in part
due to the lack of effective early detection solutions and the fact that lung
cancer largely develops asymptomatically.
LungLB® is a blood-based test that uses Circulating Genetically Abnormal
Cells ("CGAC"), which include circulating tumour cells ("CTC"), to stratify
indeterminant lung nodules as either cancerous or benign following their
identification by CT scan. Biopsy is currently part of the standard care
pathway for lung nodules and the LungLB® test is designed to support the
physician's decision to biopsy only when necessary, or to monitor
non-invasively using additional imaging. There are estimated to be over 1.5
million indeterminant lung nodules identified each year in the United States
and LungLife's estimated one week turnaround from receipt of the blood sample
to results can save a significant amount of stressful waiting time for the
participant as well as unnecessary costly and often dangerous procedures.
Progress this year
2023 has been an important year in the development of the Company, concluding
with the announcement of the results of our multi-site, prospective clinical
study on 2 January 2024.
Clinical validation study
We completed enrolment of the 425 participants in our clinical validation
study in May and its findings were concluded by year end, being announced on 2
January 2024.
We were delighted by the findings showing a strong positive predictive value
of 81% in discriminating benign from cancerous lung nodules in patients with
smaller nodules (< 15mm).
Publications - Health economics study
We published two important documents in the period, both of which are
important components in establishing the ability of the Company to be paid for
its tests, known as "coverage".
The first publication was a cost-effectiveness analysis ("CEA") model on
LungLB® which provides evidence that the test can be utilised as a
cost-effective tool within the current diagnostic pathway.
The principal aim of the research was to explore the incremental
cost-effectiveness of LungLB® when added to the current clinical diagnostic
pathway for patients with lung nodules, as described in guidelines. The
greater cost savings in the model were demonstrated by a reduction in
unnecessary procedures and better patient outcomes from reduced delays in
treatment.
Incremental Cost-Effectiveness Ratio ("ICER") is a key metric used in the
publication to demonstrate cost effectiveness. Integration of LungLB® leads
to improvement in outcomes and results in an ICER that was 25% below the
willingness to pay ("WTP") threshold commonly considered by US commercial
payors, suggesting overall savings when LungLB® is priced at $2,030 per test.
ICERs remain below WTP thresholds at prices up to $3,647 per test.
Publication - Peer reviewed publication of our test
We also announced the peer-reviewed publication of the successful performance
results for the Company's LungLB® test from a multi-site prospective study in
patients with indeterminate pulmonary nodules. The pilot study was performed
in collaboration with MD Anderson Cancer Center (Houston, TX) and Icahn School
of Medicine at Mount Sinai (New York, NY) and appears in the journal BMC
Pulmonary Medicine. The primary objective of the study was to compare the
LungLB® test result with a lung biopsy diagnosis and assess performance in a
patient cohort where commonly used nodule evaluation tools were not
informative.
We are very pleased to have been able to achieve these important milestones in
this year.
People
Our revised cash runway to April 2025 has required significant cost
reductions, the largest being to headcount and salaries for the executive
team. We are now a smaller team focussed on the key commercialisation
activities. Those who have left the company played an important role in
delivering our achievements to date and on behalf of the whole Board, I would
like to thank them for their efforts.
Post balance sheet and outlook
On 22 March 2024 the Company issued 5,172,621 new common shares at a price of
35 pence per share, raising gross proceeds of US$2,280,000 (GBP1,810,000).
The Company intends to use the net proceeds of the funding, along with the
Company's existing cash resources to establish the commercial proof of concept
of the Company's LungLB® test, as detailed below:
· funding of evidence generating activities, including the Early Access
Program ("EAP") and clinical utility studies, dependent on the factors noted
below, to support reimbursement and test adoption;
· increasing expenditure to support engagement with payors and
clinicians, and support the wider need to raise clinical awareness via key
opinion leaders, publications and conferences; and
· accelerating the commercial pathway by pursuing licensing or other
similar agreements.
The net proceeds of the Fundraising will allow the Company to consider all of
its strategic options in order to maximise shareholder value and, in
conjunction with the implementation of certain cost-cutting actions, is
expected to provide the Company with a cash runway to early April 2025.
This is our focus in 2024 and we look forward to updating shareholders on our
progress.
Roy Davis
Chairman
3 April 2024
Financial Review
The financial performance of the Company in the year to 31 December 2023
reflects the costs incurred in concluding the clinical validation study, and
the continued groundwork in laying the foundations for commercialisation.
Statement of Comprehensive Income
The Company generated revenues of US$46,000 in the year (2022 - US$34,000)
comprising wholly of royalty income from its sub licensee in China. The
royalty income is calculated at 6% of underlying net sales, and the Company
pays a 3% royalty on this income to MD Anderson Cancer Center.
The largest cost incurred in the year was employee expenses of US$2,908,000
(2022 - $3,264,000) followed by research and development costs US$1,308,000
(2022 - US$1,981,00), being those external costs incurred on our clinical
validation trial and in the continued development of our LungLB(®) test. In
the year, one of our part time employees was offered a full-time position,
bringing our operational headcount to 15.
Other operating income of US$44,000 (2022 - US$102,000) relates to claims made
under the US Government Employee Retention Credits scheme, designed as COVID
related support for businesses. Finance income of US$223,000 (2022 -
US$88,000) was generated from funds held on deposit, benefiting from high
interest rates, and we incurred finance expense of US$41,000 (2022 -
US$52,000). Finance expense in both years related to that arising on lease
liabilities for certain tangible assets and the leasehold premises.
EBITDA loss for 2023 excluding share-based payments was $5,192,000 (2022 -
EBITDA loss $6,841,000).
Statement of Financial Position
Cash and cash equivalents at the end of the year was US$2,724,000 (2022 -
US$3,088,000). In addition, the Company holds money on short term deposit, on
which notice is 95 days with the balance at year end US$104,000 (2022 -
US$4,922,000). We continue to hold the cost of acquiring the option under the
License Agreement with the Icahn School of Medicine of Mount Sinai ("Mount
Sinai") at its original purchase cost, without amortisation. The option fee
gives the Company access in the future to the de-identified participant
records held by Mount Sinai to assist in the development of future products.
As this asset is therefore not currently being utilised no amortisation has
been charged to date.
Statement of Cash Flows
The net outflow from operating activities was US$5,020,000 (2022 -
US$5,845,000), with minimal outflows for investing and financing activities
such that net cash outflow for the year was US$364,000 (2022 - outflow of
$6,129,000).
David Anderson
Chief Financial Officer
3 April 2024
Statement of Profit or Loss and Other Comprehensive Income
For the year ended 31 December 2023
Year to Year to
31 December 31 December
Note 2023 2022
US$'000 US$'000
Revenue 4 46 24
Cost of sales - -
_________ _________
Gross margin 46 24
Administrative expenses 6 (5,238) (6,865)
Share-based payments 6 (186) (614)
Depreciation 6 (254) (285)
_________ _________
Loss from operations (5,632) (7,740)
Other operating income 6 44 102
Finance income 9 223 88
Finance expense 9 (41) (52)
_________ _________
Loss before tax (5,406) (7,602)
Tax expense 10 (7) (4)
_________ _________
Loss from continuing operations (5,413) (7,606)
Other comprehensive income - -
_________ _________
Loss and total comprehensive income attributable to the owners of the Company (5,413) (7,606)
_________ _________
Earnings per share attributable to the 11
ordinary equity holders of the parent
Loss per share
Basic and diluted (US$ cents) (21.2) (29.8)
_________ _________
Statement of Financial Position
As at 31 December 2023
Note 2023 2022
US$'000 US$'000
Assets
Current assets
Trade and other receivables 14 474 613
Short term deposits 5 104 4,922
Cash and cash equivalents 5 2,724 3,088
_________ _________
3,302 8,623
_________ _________
Non-current assets
Property, plant and equipment 12 389 566
Intangible assets 13 5,818 5,818
Other receivables 14 13 13
_________ _________
6,220 6,397
_________ _________
Total assets 9,522 15,020
_________ _________
Liabilities
Current liabilities
Trade and other payables 15 1,213 1,229
Lease liabilities 16 233 255
_________ _________
1,446 1,484
Non-current liabilities
Lease liabilities 16 113 346
Provisions 17 50 50
_________ _________
Total liabilities 1,609 1,880
_________ _________
NET ASSETS 7,913 13,140
_________ _________
Issued capital and reserves attributable to
owners of the parent
Share capital 19 3 3
Share premium reserve 20 91,266 91,266
Share based payment reserve 1,760 1,574
Accumulated losses (85,116) (79,703)
_________ _________
TOTAL EQUITY 7,913 13,140
_________ _________
Statement of Cash Flows
For the year ended 31 December 2023
Year to Year to
31 December 31 December
Note 2023 2022
US$'000 US$'000
Cash flows from operating activities
Loss for the year (5,413) (7,606)
Adjustments for:
Depreciation of property, plant and equipment 254 285
Gain on sale of tangible assets - (43)
Foreign exchange loss on short term deposits - 562
Finance income (223) (88)
Finance expense 41 52
Taxation 7 4
Share-based payments expense 186 614
_________ _________
(5,148) (6,220)
(Increase) / decrease in trade and other receivables 151 128
(Decrease) / increase in trade and other payables (16) 251
Income taxes paid (7) (4)
_________ _________
Net cash outflow from operating activities (5,020) (5,845)
_________ _________
Cash flows from investing activities
Purchases of tangible assets (77) (85)
Interest received 212 88
Proceeds from sale of tangible assets - 43
Short term deposits 4,817 (73)
_________ _________
Net cash generated by / (used in) investing activities 4,952 (27)
_________ _________
Cash flows from financing activities
Issue of Common Stock - 2
Interest paid (41) (52)
Repayment of lease liabilities (255) (207)
_________ _________
Net cash (used in) / from financing activities (296) (257)
Net decrease in cash and cash equivalents (364) (6,129)
Cash and cash equivalents at beginning of year 3,088 9,217
_________ _________
Cash and cash equivalents at end of year 5 2,724 3,088
_________ _________
Statement of changes in equity
for the year ended 31 December 2023
Share Share Share-based Accumulated losses Total Total
capital premium payment attributable equity
reserve to equity
holders of
parent
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
1 January 2022 3 91,264 960 (72,097) 20,130 20,130
Comprehensive income for the year
Loss - - - (7,606) (7,606) (7,606)
Other comprehensive Income - - - - - -
_________ _________ _________ _________ _________ _________
Total comprehensive Income for the year - - - (7,606) (7,606) (7,606)
_________ _________ _________ _________ _________ _________
Contributions by and distributions to owners
Exercise of options - 2 - - 2 2
Share-based payment - - 614 - 614 614
_________ _________ _________ _________ _________ _________
Total contributions by and - 2 614 - 616 616
distributions to owners
_________ _________ _________ _________ _________ _________
31 December 2022 3 91,266 1,574 (79,703) 13,140 13,140
_________ _________ _________ _________ _________ _________
Statement of changes in equity
for the year ended 31 December 2023 (continued)
Share Share Share-based Accumulated losses Total Total
capital premium payment attributable equity
reserve to equity
holders of
parent
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
1 January 2023 3 91,266 1,574 (79,703) 13,140 13,140
Comprehensive income for the year
Loss - - - (5,413) (5,413) (5,413)
Other comprehensive Income - - - - - -
_________ _________ _________ _________ _________ _________
Total comprehensive Income for the year - - - (5,413) (5,413) (5,413)
_________ _________ _________ _________ _________ _________
Contributions by and distributions to owners
Share-based payments - - 186 - 186 186
_________ _________ _________ _________ _________ _________
Total contributions by and - - 186 - 186 186
distributions to owners
_________ _________ _________ _________ _________ _________
31 December 2023 3 91,266 1,760 (85,116) 7,913 7,913
_________ _________ _________ _________ _________ _________
Notes to the financial statements
For the year ended 31 December 2023
1 General Information
LungLife AI, Inc, (the "Company") is a company based in Thousand Oaks,
California which is developing a diagnostic test for the early detection of
lung cancer. The Company was incorporated under the laws of the state of
Delaware, USA, on 30 December 2009.
The Company's costs associated with developing and commercialising its test
include costs associated with the development of intellectual property
optimising the technology, and obtaining regulatory approval. To complete
clinical trials the Company will continue to require additional operating
funds. The Company has raised funds through offerings of debt, common stock
and Series A Preferred Shares.
There are no restrictions on the Company's ability to access or use its assets
and settle its liabilities.
2 Basis of preparation
Information in this preliminary announcement does not constitute statutory
accounts of the company. The financial information presented in this
preliminary announcement is based on, and is consistent with, that in the
company's audited financial statements for the year ended 31 December 2023,
which will be delivered to shareholders for approval at the Company's Annual
General Meeting. The independent auditors have reported on those financial
statements and their report is unqualified.
The financial statements have been prepared in accordance with UK adopted
International Accounting Standards ("UK IFRS").
These financial statements are prepared in accordance with UK IFRS under the
historical cost convention, as modified by the use of fair value for certain
financial instruments measured at fair value. The historical financial
information is presented in United States Dollars ("US$") except where
otherwise indicated.
The principal accounting policies adopted in the preparation of the financial
statements are set out below.
The policies have been consistently applied to all the years presented, unless
otherwise stated.
(a) Going concern
These financial statements have been prepared on the going concern basis.
On 2 January 2024, LungLife reported positive validation study results for its
LungLB® test, a minimally invasive blood draw test used for the early
detection of lung cancer. These results are the catalyst for the Company to
begin its commercialisation process for the test. In view of the early stage
of its commercial development the group currently funds its activities from
existing cash resources. In addition, it expects to generate cash receipts
from commercial revenues in future periods and if required, from additional
equity or debt funding for future working capital needs.
At 31 December 2023 the Company had available cash resources and short term
deposits of $2.8 million (2022 - $8.0 million. The Company is focused on the
commercial proof of concept of its test and expects minimal revenues in 2024.
As there are uncertainties in relation to the quantum and timing of cash
receipts the financial projections have been prepared without including any
assumed receipts from commercial revenues.
As set out in note 23, on 21 March 2024 a special meeting of the Company
approved the issue of 5,172,621 new shares of common stock of the Company at a
price of 35 pence per share. The new shares represent approximately 16.9 per
cent. of the enlarged share capital of the company. The issue of shares raised
approximately £1.8 million (approximately US$2.3 million) (before fees and
expenses). The net proceeds of the fundraising, along with the Company's
existing cash resources, are expected to be utilised to establish the
commercial proof of concept of the Company's LungLB® test, including:
· funding of evidence generating activities, including the Early Access
Program and clinical utility studies to support reimbursement and test
adoption;
· increasing expenditure to support engagement with payors and
clinicians, and support the wider need to raise clinical awareness via key
opinion leaders, publications and conferences; and
· accelerating the commercial pathway by pursuing licensing or other
similar agreements.
The net proceeds of the fundraising will allow the Company to consider all of
its strategic options in order to maximise shareholder value and, in
conjunction with the implementation of certain cost-cutting actions, is
expected to provide the Company with a cash runway to early April 2025.
Having taken into account the information and estimates available at the date
of approving these financial statements, the directors consider it is
appropriate to adopt the going concern basis in preparing the financial
statements. Although the company's projections, including expected levels of
revenue generation, indicate sufficient funds through to the second quarter of
2025, it is reasonably possible that the group will require additional funding
during, or shortly after a period of 12 months from the date of approval of
these financial statements. The directors will seek to put in place funding
arrangements which may from time to time be required but such arrangements are
not presently committed. This represents a material uncertainty in relation to
the group's funding arrangements.
(b) New standards, amendments and interpretations
New standards are not expected to impact the Company as they are either not
relevant to the Company's activities or require accounting which is consistent
with the Company's current accounting policies.
The Directors have considered those standards and interpretations which have
not been applied in these financial statements but which are relevant to the
Company's operations that are in issue but not yet effective and do not
consider that they will have a material effect on the future result of
operations, statement of position or statement of cash flows of the Company.
(c) Revenue recognition
Royalty income
Under the terms of a patent and technology sub license agreement the company
is entitled to receive royalty income at 6% of the quarterly net sales
invoiced by the sub licensee in the relevant quarter. Income is recognised in
the period in which the underlying net sales are generated.
Cash is received from revenues recognised according to terms of trade within
the relevant contractual relationship, usually in accordance with agreed
events such as placing of order, fulfilment of order and delivery.
(d) Intangible assets
Licenses are measured at cost less accumulated amortization and any
accumulated impairment losses.
(e) Property, plant and equipment
Owned assets
Items of property, plant and equipment are stated at cost less accumulated
depreciation and impairment losses. Cost includes the original purchase
price of the asset and the costs attributable to bringing the asset to its
working condition for its intended use. When parts of an item of property,
plant and equipment have different useful lives, those components are
accounted for as separate items of property, plant and equipment.
Subsequent costs are included in the asset's carrying amount or recognised as
a separate asset, as appropriate, only when it is probable that future
economic benefits associated with the item will flow to the Company and the
cost of the item can be measured reliably.
(e) Property, plant and equipment (continued)
Depreciation
Depreciation is charged to profit or loss on a straight-line basis over the
estimated useful lives of each part of an item of property, plant and
equipment. The estimated useful lives are as follows:
· computer and IT equipment - 33 per cent. straight line
· leasehold improvements - shorter of lease term and useful life
· plant and machinery - 20 per cent. straight line
· laboratory equipment - 20 per cent. straight line
The residual values, useful lives and depreciation methods are reviewed, and
adjusted if appropriate, or if there is an indication of a significant change
since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with
the carrying amount and are recognised within "other operating income" in the
statement of income.
(f) Impairment of non-financial assets
Non-financial assets are reviewed for impairment annually in the case of not
being available for use, and whenever events or changes in circumstances
indicate that the carrying amount may not be recoverable. An impairment loss
is recognised for the amount by which the asset's carrying amount exceeds its
recoverable amount. The recoverable amount is the higher of an asset's fair
value less costs to sell and value in use. For the purposes of assessing
impairment, assets are considered at the lowest levels for which there are
separately identifiable cash flows (cash- generating units).
(g) Financial assets
Classification
The Company classifies its financial assets as loans and receivables. The
classification depends on the purpose for which the investments were acquired.
Management determines the classification of its investments at initial
recognition.
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or
determinable payments. They are initially recognised at fair value and are
subsequently stated at amortised cost using the effective interest method.
Impairment of financial assets
Impairment provisions are recognised when there is objective evidence (such as
significant financial difficulties on the part of the counterparty or default
or significant delay in payment) that the Company will be unable to collect
all of the amounts due under the term's receivable, the amount of such a
provision being the difference between the net carrying amount and the present
value of the future expected cash flows associated with the impaired asset.
(h) Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call deposits with an
original maturity of three months or less.
(i) Financial liabilities
Trade and other payables
Trade and other payables are initially recognised at fair value and
subsequently measured at amortised cost. Accounts payable are classified as
current liabilities if payment is due within one year or less. If not, they
are presented as non-current liabilities.
(j) Provisions
A provision is recognised in the statement of financial position when the
Company has a present legal or constructive obligation as a result of a past
event, and it is probable that an outflow of economic benefits will be
required to settle the obligation. If the effect is material, provisions are
determined by discounting the expected future cash flows at a pre- tax rate
that reflects current market assessments of the time value of money and, when
appropriate, the risks specific to the liability. The increase in the
provision due to the passage of time is recognised in finance costs.
(k) Share capital
Ordinary shares are classified as equity. There are various classes of
ordinary shares in issue, as detailed in note 19. Incremental costs directly
attributable to the issue of new shares are shown in share premium as a
deduction from the proceeds.
(l) Net finance costs
Finance costs
Finance costs comprise interest payable on borrowings, direct issue costs and
dividends on preference shares, and are expensed in the period in which they
are incurred.
Finance income
Finance income comprises interest receivable on funds invested.
Interest income is recognised in the income statement as it accrues using the
effective interest method.
(m) Leases
All leases are accounted for by recognising a right-of-use asset and a lease
liability except for:
· Leases of low value assets; and
· Leases with a duration of 12 months or less.
Lease liabilities are measured at the present value of the contractual
payments due to the lessor over the lease term, with the discount rate
determined by reference to the rate inherent in the lease unless (as is
typically the case) this is not readily determinable, in which case the
Company's incremental borrowing rate on commencement of the lease is used.
Other variable lease payments are expensed in the period to which they relate.
On initial recognition, the carrying value of the lease liability also
includes:
· amounts expected to be payable under any residual value guarantee
· the exercise price of any purchase option granted in favour of the
Company if it is reasonably certain to assess that option
· any penalties payable for terminating the lease, if the term of the
lease has been estimated on the basis of termination option being exercised.
Right of use assets are initially measured at the amount of the lease
liability, reduced for any lease incentives received, and increased for:
· lease payments made at or before commencement of the lease
· initial direct costs incurred; and
· the amount of any provision recognised where the Company is
contractually required to dismantle, remove or restore the leased asset
(typically leasehold dilapidations - see note 17).
Subsequent to initial measurement lease liabilities increase as a result of
interest charged at a constant rate on the balance outstanding and are reduced
for lease payments made. Right-of-use assets are amortised on a straight-line
basis over the remaining term of the lease or over the remaining economic life
of the asset if, rarely, this is judged to be shorter than the lease term.
(n) Leases (continued)
When the company revises its estimate of the term of any lease (because, for
example, it re-assesses the probability of a lessee extension or termination
option being exercised) it adjusts the carrying amount of the lease liability
to reflect the payments to make over the revised term, which are discounted
using a revised discount rate. The carrying value of lease liabilities is
similarly revised when the variable element of future lease payments dependent
on a rate or index is revised, except the discount rate remains unchanged. In
both cases an equivalent adjustment is made to the carrying value of the
right-of-use asset, with the revised carrying amount being amortised over the
remaining (revised) lease term. If the carrying amount of the right-of-use
asset is adjusted to zero, any further reduction is recognised in profit or
loss.
(o) Income tax
Income tax for the years presented comprises current and deferred tax. Income
tax is recognised in the income statement except to the extent that it relates
to items recognised directly in equity, in which case it is recognised in
equity. Current tax is the expected tax payable on the taxable income for the
year, using tax rates enacted or substantively enacted at the statement of
financial position date, and any adjustment to tax payable in respect of
previous years.
Deferred tax is recognised on temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts.
The following temporary differences are not recognised if they arise from (a)
the initial recognition of goodwill; and (b) for the initial recognition of
other assets or liabilities in a transaction other than a business combination
that at the time of the transaction affects neither accounting nor taxable
profit or loss. The amount of deferred tax provided is based on the expected
manner of realisation or settlement of the carrying amount of assets and
liabilities, using tax rates enacted or substantively enacted at the statement
of financial position date.
A deferred tax asset is recognised only to the extent that it is probable that
future taxable profits will be available against which the asset can be
utilised. Deferred tax assets are reduced to the extent that it is no longer
probable that the related tax benefit will be realised.
Deferred income tax assets and liabilities are offset when there is a legally
enforceable right to offset current tax assets against current tax liabilities
and when the deferred income taxes assets and liabilities relate to income
taxes levied by the same taxation authority on either the taxable entity or
different taxable entities where there is an intention to settle the balances
on a net basis.
(p) Foreign currency translation
i) Function and presentational currency
Items included in the financial statements of the Company are measured using
USD, the currency of the primary economic environment in which the entity
operates ('the functional currency'), which is also the Company's presentation
currency.
ii) Transactions and balances
Foreign currency transactions are translated into the functional currency
using the exchange rates prevailing at the dates of the transactions. Foreign
exchange gains and losses resulting from the settlement of such transactions
and from the translation at year-end exchange rates, of monetary assets and
liabilities denominated in foreign currencies to USD, are recognised in the
income statement.
3 Critical accounting judgements and estimates
The preparation of the Company's historical financial information under UK
IFRS requires the directors to make estimates and assumptions that affect the
reported amounts of assets and liabilities and the disclosure of contingent
assets and liabilities. Estimates and judgements are continually evaluated and
are based on historical experience and other factors including expectations of
future events that are believed to be reasonable under the circumstances.
Actual results may differ from these estimates.
The Directors consider that the following judgement is likely to have the most
significant effect on the amounts recognised in the financial information.
Classification of the Mount Sinai License as an intangible asset
As set out in note 13, on 18 June 2021, the Company entered into the Mount
Sinai License Agreement, pursuant to which Mount Sinai granted an option to
the Company to obtain a licence, on a non-exclusive basis, to use certain
information held by Mount Sinai. After considering the criteria in IAS38 the
directors have judged that the recognition criteria therein have been met and
classified the Mount Sinai license as an intangible asset.
4 Segment analysis
IFRS 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 (which takes the form of the Board of
Directors) as defined in IFRS 8, in order to allocate resources to the segment
and to assess its performance.
The chief operating decision maker has determined that the Company has one
operating segment, the development and commercialisation of its lung cancer
early detection test. Revenues are reviewed based on the products and services
provided. All revenue arises from the same customer in both years.
The Company operates in the United States of America. Revenue by origin of
geographical segment is as follows:
Year to Year to
31 December
31 December
2023
2022
US$'000 US$'000
Revenue
People's Republic of China 46 24
________ ________
46 24
________ ________
2023 2022
US$'000 US$'000
Non-current assets
United States of America 6,220 6,397
________ ________
6,220 6,397
________ ________
Year to Year to
31 December 31 December
2023 2022
US$'000 US$'000
Product and service revenue
Royalty income 46 24
________ ________
46 24
________ ________
5 Financial instruments - Risk management
The Company is exposed through its operations to the following financial
risks:
- Credit risk
- Foreign exchange risk and
- Liquidity risk
The Company is exposed to risks that arise from its use of financial
instruments. This note describes the Company's objectives, policies and
processes for managing those risks and the methods used to measure them.
Further quantitative information in respect of these risks is presented
throughout these financial statements.
(i) Principal financial instruments
The principal financial instruments used by the Company, from which financial
instrument risk arises, are as follows:
- Cash and cash equivalents
- Short term cash deposits
- Trade and other payables
(ii) Financial instruments by category
Financial asset
Amortised Amortised
Cost cost
2023 2022
US$'000 US$'000
Cash and cash equivalents 2,724 3,088
Short term cash deposits 104 4,922
Trade and other receivables 174 155
_________ _________
Total financial assets 3,002 8,165
_________ _________
Financial liabilities
Amortised Amortised
Cost cost
2023 2022
US$'000 US$'000
Trade and other payables 1,039 1,055
_________ _________
Total financial liabilities 1,039 1,055
_________ _________
(iii) Financial instruments not measured at fair value
Financial instruments not measured at fair value includes cash and cash
equivalents, trade and other receivables, and trade and other payables.
Due to their short-term nature, the carrying value of cash and cash
equivalents, trade and other receivables, and trade and other payables
approximates their fair value.
See note 16 for information on lease liabilities.
(iv) Financial instruments
General objectives, policies and processes
The Board has overall responsibility for the determination of the Company's
risk management objectives and policies and, whilst retaining ultimate
responsibility for them, it has delegated the authority for designing and
operating processes that ensure the effective implementation of the objectives
and policies to the Company's finance function.
The overall objective of the Board is to set policies that seek to reduce risk
as far as possible without unduly affecting the Company's competitiveness and
flexibility. Further details regarding these policies are set out below:
Credit risk
Credit risk is the risk of financial loss to the Company if a customer or
counterparty to a financial instrument fails to meet its contractual
obligations. Due to the current low level of revenue, the Company's exposure
to credit risk is on cash at bank. The Company only deposits cash with major
banks with high quality credit standing.
Cash in bank and short-term deposits
The credit quality of cash has been assessed by reference to external credit
rating, based on Standard and Poor's long-term / senior issuer rating:
2023 2023 2022 2022
Cash in bank Cash Cash
Rating at bank Rating at bank
US$'000 US$'000
Bank A A+ 58 A+ 981
Bank B BBB+ 2,588 BBB+ 2,002
Bank C A+ 78 A+ 105
_________ _________
2,724 3,088
_________ _________
2023 2023 2022 2022
Short term deposits
Rating Rating
US$'000 US$'000
Bank B BBB+ 104 BBB+ 4,922
_________ _________
104 4,922
_________ _________
Foreign exchange risk
Foreign exchange risk arises when the Company enters into transactions
denominated in a currency other than its functional currency. The Company's
policy is, where possible, to settle liabilities denominated in its functional
currency. Currently the Company's liabilities are either US dollar or UK
sterling. No forward contracts or other financial instruments are entered into
to hedge foreign exchange movements, with funds raised in the UK being
transferred to fund US operations using spot rates.
As at 31 December 2023 assets held in Sterling amounted to US$79,000 (2022 -
US$5,275,000) and liabilities held in Sterling amounted to US$92,000 (2022 -
US$65,000).
The effect of a 5% strengthening of the Sterling against US dollar at the
reporting date on the Sterling denominated net assets carried at that date
would, all other variables held constant, have resulted in a decrease in
post-tax loss for the year and decrease of net assets of US$1,000 (2022 -
increase US$260,000). A 5% weakening in the exchange rate would, on the same
basis, have increased post-tax loss and decreased net assets by US$1,000 (2022
- US$260,000).
Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in
meeting its financial obligations as they fall due. This risk is managed by
the production of annual cash flow projections. The Company's continued future
operations depend on its ability to raise sufficient working capital through
the issue of share capital and generating revenue.
The following table sets out the contractual maturities (representing
undiscounted contractual cash-flows) of financial liabilities which can all be
met from the cash resources currently available:
Between
Up to 3 3 and 12
Months months
At 31 December 2023 US$'000 US$'000
Trade and other payables 454 -
_________ _________
Total 454 -
_________ _________
Between
Up to 3 3 and 12
Months months
At 31 December 2022 US$'000 US$'000
Trade and other payables 371 -
_________ _________
Total 371 -
_________ _________
Capital Disclosures
The Company monitors its capital which comprises all components of equity
(i.e., share capital, share premium, and accumulated losses).
The Company's objectives when maintaining capital are to safeguard the
entity's ability to continue as a going concern.
6 Expenses by nature
Year to Year to
31 December 31 December
2023 2022
US$'000 US$'000
Employee benefit expenses (see note 8) 2,908 3,264
Share-based payments charge - non-employee and directors 17 37
Depreciation of property, plant and equipment 254 285
Gain on disposal of equipment - (43)
Research and development expenditure 1,308 1,981
Professional costs 609 643
Foreign exchange (gains) / losses (146) 659
Other costs 728 938
Other operating income is claims made for Employee Retention Credits.
7 Auditors' remuneration
During the year the Company obtained the following services from the Company's
auditor:
Year to Year to
31 December 31 December
2023 2022
US$'000 US$'000
Fees payable to the Company's auditor for the audit of the Company 56 48
_________ _________
Total 56 48
_________ _________
8 Employee benefit expenses
Year to Year to
31 December 31 December
2023 2022
US$'000 US$'000
Employee benefit expenses (including Directors) comprise:
Wages and salaries 2,312 2,262
Benefits 185 164
Share-based payments expense 169 577
Social security contributions and similar taxes 171 177
Pension 71 84
_________ _________
2,908 3,264
_________ _________
Key management personnel compensation
Key management personnel are those persons having authority and responsibility
for planning, directing and controlling the activities of the Company,
including the Directors of the Company.
Year to Year to
31 December 31 December
2023 2022
US$ US$
Salary 683 696
Share based payment expense 124 495
_________ _________
807 1,191
_________ _________
The average number of employees (including Directors) in the Company in the
year was 19 (2022 - 18).
9 Net finance costs
Year to Year to
31 December 31 December
2023 2022
US$'000 US$'000
Finance expense
Interest expense on lease liabilities 36 52
Interest on short term funding 5 -
_________ _________
Total finance expense 41 52
_________ _________
Year to Year to
31 December 31 December
2023 2022
US$'000 US$'000
Finance income
Bank interest 223 88
_________ _________
Total finance income 223 88
_________ _________
10 Tax expense
Year to Year to
31 December 31 December
2023 2022
US$'000 US$'000
Current tax expense
Current tax on loss for the year - -
Withholding tax on royalties 7 4
_________ _________
Total current tax 7 4
Deferred tax asset
On losses generated in the year - -
_________ _________
7 4
_________ _________
There were no charges to current corporation taxation due to the losses
incurred by the Company in the year. The reasons for the difference between
the actual tax charge for the year and the US federal income tax rate of 21%
and state of California income tax rate of 8.84% are as follows:
Year to Year to
31 December 31 December
2023 2022
US$'000 US$'000
Loss for the year (5,413) (7,606)
_________ _________
Tax using 29.84% (1,615) (2,270)
Expenses not deductible for tax purposes 37 34
Unrecognised deferred tax assets for losses carried forward 1,578 2,236
_________ _________
Total tax expense - -
_________ _________
The unrecognised deferred tax is based on Federal taxable losses carried
forward of US$56,623,000 (2022 - US$53,485,000) and a Federal capital loss of
US$4,583,333 (2022 - US$4,583,333). No deferred tax asset is recognised for
these losses due to early stage in the development of the Company's
activities. Of the total Federal losses carried forward US$35,281,000 (2022 -
US$35,281,000) expire in 2030 and can only be used against trading profits
from the same trade. Losses of US$21,342,000 (2022 - US$18,204,000) do not
expire but can only offset against 80% of taxable profits from the same trade.
11 Loss per share
Year to Year to
31 December 31 December
2023 2022
Total Total
Numerator US$ US$
Loss for the year used in basic EPS (5,413,213) (7,605,585)
Denominator
Weighted average number of ordinary shares used in basic EPS 25,485,982 25,481,800
Resulting loss per share (US$0.212) (US$0.298)
The Company has one category of dilutive potential ordinary share, being share
options (see note 21). The potential shares were not dilutive in the year as
the Company made a loss per share in line with IAS 33. As described in note
19, between 2 July 2021 and 7 July 2021 the Company implemented a
pre-Admission reorganisation of its capital which included the conversion of
Series A and B Preferred Shares into Common Shares and a reverse share split
by way of the issue of one new Common Share and Preferred Share for every 18
old Common Shares and Preferred Shares held.
12 Tangible assets
Furniture Computers
Leasehold and and IT Plant &
improvements equipment Equipment machinery Total
US$'000 US$'000 US$'000 US$'000 US$
Cost or valuation
At 1 January 2022 1,316 56 85 1,309 2,766
Additions - - 31 54 85
________ ________ ________ _________ _________
At 31 December 2022 1,316 56 116 1,363 2,851
Additions - - - 77 77
________ ________ ________ ________ ________
At 31 December 2023 1,316 56 116 1,440 2,928
________ ________ ________ ________ ________
Accumulated depreciation and impairment
At 1 January 2022 945 56 53 946 2,000
Depreciation 140 - 19 126 285
________ ________ ________ ________ ________
At 31 December 2022 1,085 56 72 1,072 2,285
Depreciation 131 - 22 101 254
________ ________ ________ ________ ________
At 31 December 2023 1,216 56 94 1,173 2,539
________ ________ ________ ________ ________
Net book value
At 31 December 2023 100 - 22 267 389
________ ________ ________ ________ ________
At 31 December 2022 231 - 44 291 566
________ ________ ________ ________ ________
Included in leasehold improvements at 31 December 2023 are right of use assets
with a cost of $1,282,000 (2022 - $1,282,000) and accumulated depreciation of
$1,173,000 (2022 - $1,042,000).
13 Intangible assets
License Total
US$'000 US$'000
Cost
_________ _________
At 31 December 2022 and 2023 5,818 5,818
_________ _________
Accumulated amortisation and impairment
At 1 January 2022 - -
Amortisation charge - -
_________ _________
At 31 December 2022 - -
Amortisation charge
_________ _________
At 31 December 2023 - -
_________ _________
Net book value
At 31 December 2023 5,818 5,818
_________ _________
At 31 December 2022 5,818 5,818
_________ _________
On 18 June 2021, the Company entered into the Mount Sinai Licence Agreement,
pursuant to which the Icahn School of Medicine at Mount Sinai ("Mount Sinai")
granted an option to the Company to obtain a licence, on a non-exclusive
basis, to use certain information held by Mount Sinai. The Mount Sinai Licence
Agreement automatically became effective on Admission. Exercise of the option
contained in the Mount Sinai Licence Agreement is conditional on: (i)
Admission; (ii) clearance by Mount Sinai's information security team; and
(iii) IRB, data security and data use approvals. Mount Sinai is under an
obligation to use commercially reasonable efforts to obtain such clearances
and approvals (other than Admission). Pursuant to the Mount Sinai Licence
Agreement, Mount Sinai has granted the Company an option to obtain a licence,
on a non-exclusive basis, to use certain information held by Mount Sinai to be
able to develop future products.
14 Trade and other receivables
2023 2022
US$'000 US$'000
Amounts falling due within one year
Prepayments 299 458
Accrued income 31 5
Other debtors 144 150
_________ _________
474 613
_________ _________
2023 2022
US$'000 US$'000
Amounts falling due after one year
Rent deposit 13 13
_________ _________
13 13
_________ _________
15 Trade and other payables
2023 2022
US$'000 US$'000
Trade payables 439 358
Accruals and other payables 759 858
_________ _________
Total financial liabilities classified as financial liabilities measured at 1,198 1,216
amortised cost
Other payables - tax and social security payments 15 13
_________ _________
Total trade and other payables 1,213 1,229
_________ _________
The carrying value of trade and other payables classified as financial
liabilities measured at amortised cost approximates fair value.
16 Lease Liabilities
Land and Plant and
buildings machinery Total
US$'000 US$'000 US$'000
At 1 January 2022 504 304 808
Interest expense 37 15 52
Repayments (134) (125) (259)
________ ________ ________
At 31 December 2022 407 194 601
________ ________ ________
Repayments (166) (125) (291)
Interest expense 27 9 36
________ ________ ________
At 31 December 2023 268 78 346
________ ________ ________
2023 2022
US$'000 US$'000
Maturity of lease liabilities
Within 3 months 74 75
Between 3 - 12 months 179 225
Between 1 - 2 years 117 253
Between 2 - 5 years - 117
________ ________
370 670
________ ________
17 Provisions
Dilapidations Total
US$'000 US$'000
At 1 January 2022 50 50
Movement - -
_________ _________
At 31 December 2022 50 50
_________ _________
Movement - -
_________ _________
At 31 December 2023 50 50
_________ _________
Provision is made for the anticipated cost of returning the Company's premises
to their prior state on termination of the lease. The lease terminates in
August 2025.
18 Net cash /(debt) reconciliation
2023 2022
US$'000 US$'000
Cash and cash equivalents 2,724 3,088
Lease liabilities (346) (601)
_________ _________
Net cash / (debt) 2,378 2,487
_________ _________
Cash and Borrowings
cash equivalents and loans Net Debt
US$'000 US$'000 US$'000
Net debt at 1 January 2022 9,217 (808) 8,409
Cash flows (6,129) - (6,129)
Other non-cash movements:
Lease liabilities - 207 207
_________ _________ _________
Net debt at 31 December 2022 3,088 (601) 2,487
_________ _________ _________
Cash flows
Other non-cash movements: (364) (364)
Lease liabilities - 255 255
_________ _________ _________
Net debt at 31 December 2023 2,724 (346) 2,378
_________ _________ _________
19 Share capital
Issued and fully paid
Number US$
Shares of US$0.0001 par value each
At 1 January 2022 25,480,790 2,548
Exercise of 5,192 options in the year 5,192 5
Total issued share capital at 31 December 2022 25,485,982 2,553
_________ _________
Total issued share capital at 31 December 2023 25,485,982 2,553
_________ _________
Between 2 July 2021 and 7 July 2021 the Company implemented a pre-Admission
reorganisation of its capital which included, inter alia, the following:
· A reverse share split by way of the issue of one new Common or
Preferred Share for every 18 old Common or Preferred Shares held
· Conversion of Series A-1 and Series A-2 Convertible Notes and related
Warrants into Common Shares
· Conversion of Series A Preferred Shares and Series B Preferred Shares
into Common Shares
As a result the Company only has common shares in issue.
20 Reserves
The following describes the nature and purpose of each reserve within equity:
Reserve Description and purpose
Share premium Amount subscribed for share capital in excess of nominal value.
Share based payment reserve Amount charged to date in respect of share based payment expense
Accumulated losses All other net gains and losses and transactions with owners (e.g., dividends)
not recognised elsewhere.
21 Share-based payment
Prior to Admission to AIM the Company operated two share option plans: the
2010 Stock Incentive Plan and approved by the Board on 1 January 2010 and the
2020 Stock Incentive Plan was approved on 14 May 2020:
(a) options granted under the 2010 Stock Incentive Plan fall into two
groups:
(i) options granted in or before 2016 over a total of 2,183,634
shares, with exercise prices ranging from $0.10 to $0.16 per share, these
options are now fully vested; and
(ii) options granted in 2019 over a total of 6,951,463 shares, with an
exercise price of $0.025 per share: these options generally vest on a monthly
basis over three or four years from the date of grant. However, those granted
to current employees of the Company were amended so that they became
exercisable in full on Admission.
(b) Options were granted in 2020 and 2021 under the 2020 Stock Incentive
Plan over a total of 5,364,385 shares with an exercise price of $0.0044 per
share. These options vest over four years from the date of grant on a monthly
basis, but certain of these options accelerated immediately before Admission,
and became fully exercisable at Admission.
On 14 May 2021 the Board approved the Company's 2021 Omnibus Long-Term
Incentive Plan ("LTIP") and it was approved by shareholders on 27 May 2021 to
become effective approximately three days prior to Admission. The LTIP
provides for the grant of both EMI Options and non-tax favoured options.
Options granted under the LTIP are subject to exercise conditions as
summarised below.
The LTIP has a non-employee sub-plan for the grant of Options to the Company's
advisors, consultants, non-executive directors, and entities providing,
through an individual, such advisory, consultancy, or office holder services
and a US sub-plan for the grant of Options to eligible participants in the
LTIP and the Non-Employee Sub-Plan who are US residents and US taxpayers.
With the exception of options over 384,924 shares, which vested immediately on
Admission, the options issued under the LTIP vest 25% on the first anniversary
of the vesting commencement date and an additional one forty-eighth of the
total number of options after each subsequent calendar month for employees.
For consultants options issued under the LTIP vest 25% on the first
anniversary of the vesting commencement date and an additional one sixteenth
of the total number of options after each subsequent quarter. If options
remain unexercised after the date one day before the tenth anniversary of
grant such options expire. Vesting shall accelerate in full in the event of a
change of control of the Company.
As described in note 19, between 2 July 2021 and 7 July 2021 the Company
implemented a pre-Admission reorganisation of its capital which included a
reverse share split by way of the issue of one new Common or Preferred Share
for every 18 old Common or Preferred Shares held.
At the date of the reorganisation there were 14,499,482 pre-Admission options
outstanding to 32 option holders comprising Directors, former Directors and
employees with exercise prices between $0.0044 and $0.16 per share. Those
options were varied to reflect the reverse share split so that they were
replaced with 805,492 options with exercise prices of between $0.0792 and
$2.88 per share. The directors consider that this was a mechanical variation
modification of the awards and not a modification for the purposes of IFRS2.
Comparative figures have been adjusted to restate numbers and values of share
options issued as if the reverse share split had been in effect from 1 January
2020.
On Admission on 8 July 2021 the Board approved grants of 769,707 to Paul
Pagano and 386,703 options to David Anderson and on 23 November 2021 and 27
December 2021 the Board approved further grants, of 112,500 and 5,000 options
respectively, to employees and consultants.
21 Share-based payment (continued)
Weighted
average
exercise
price US$ Number
Outstanding at 31 December 2021 1.74 2,065,527
_________
Granted during 2022 2.37 75,000
Exercised during 2022 0.45 (5,192)
Expired during 2022 1.80 (18,356)
_________ _________
Outstanding at 31 December 2022 and 2023 1.76 2,116,979
_________ _________
Exercisable at 31 December 2022 1.62 1,506,180
_ _
Exercisable at 31 December 2023 1.71 1,817,206
_ _
The exercise price of options outstanding at 31 December 2023 ranged
between US$0.08 and US$2.70 and their weighted average remaining contractual
life was 6.92 years and weighted average expected life was 3.55 years.
The Company recognised total expenses of US$186,000 (2022: US$614,000) within
administrative expenses relating to equity-settled share-based payment
transactions during the year.
22 Related party transactions
During the year an amount of US$85,000 (2022 - US$130,000) was invoiced by The
Icahn School of Medicine at Mount Sinai for services rendered in the year. As
of 31 December 2023 no amounts were owed to The Icahn School of Medicine at
Mount Sinai (2022 - Nil).
During the year Paul Pagano and David Anderson, both directors of the Company,
each purchased 7,123 shares in the Company using their own funds.
23 Events after the reporting date
On 21 March 2024 a special meeting of the Company approved the issue of
5,172,621 new shares of common stock of the Company at a price of 35 pence per
share. The new shares represent approximately 16.9 per cent. of the enlarged
share capital of the company. The issue of shares raised approximately £1.8
million (approximately US$2.3 million) (before fees and expenses).
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