Announcement PDF Neuren Pharmaceuticals Ltd Appendix 4D Half-year report 1. Company details Name of entity: ABN: Reporting period: Previous period: Neuren Pharmaceuticals Ltd 72 111 496 130 For the half-year ended 30 June 2024 For the half-year ended 30 June 2023 2. Results for announcement to the market 2024 $'000 2023 $'000 Change $'000 Change % Revenues from ordinary activities 32,106 64,405 (32,299) (50%) Profit from ordinary activities after tax attributable to the owners of Neuren Pharmaceuticals Ltd 8,016 47,805 (39,789) (83%) Profit for the half-year attributable to the owners of Neuren Pharmaceuticals Ltd 8,016 47,805 (39,789) (83%) 2024 Cents Basic earnings per share Diluted earnings per share 6.28 6.13 2023 Cents 37.84 36.76 Dividends There were no dividends paid, recommended or declared during the current financial period. Comments The profit after income tax for the half-year ended 30 June 2024 was A$8.0 million, compared with a net profit after tax of A$47.8 million for the half-year ended 30 June 2023. Royalty revenue from Acadia increased to A$24.3 million from A$3.5 million in the half-year ended 30 June 2023. This increase was offset by milestone revenue in the half-year to 30 June 2023 of A$59.4 million, which was earned on the first commercial sale of DAYBUE. Milestone revenue of A$77 million (assuming USD/AUD exchange rate of 0.65) is expected to be earned in the second half of 2024, receivable for the first calendar year in which net sales of DAYBUE are equal to or greater than US$250 million. For further commentary on the Company's results, please refer to the accompanying ASX release and the Directors’ report within the Interim Report. This information should be read in conjunction with the most recent Annual Report (for the financial year ended 31 December 2023). 3. Net tangible assets Reporting period Cents Net tangible assets per ordinary security 4. Control gained over entities Not applicable. 168.44 Previous period Cents 71.57 Neuren Pharmaceuticals Ltd Appendix 4D Half-year report 5. Loss of control over entities Not applicable. 6. Dividends Current period There were no dividends paid, recommended or declared during the current financial period. Previous period There were no dividends paid, recommended or declared during the previous financial period. 7. Dividend reinvestment plans Not applicable. 8. Details of associates and joint venture entities Not applicable. 9. Accounting standards The interim financial statements have been prepared in accordance with International Accounting Standard 34 and NZ IAS 34 Interim Financial Reporting. 10. Auditors review The financial statements were subject to a review by the auditors and the review report is attached as part of the Interim Report. 11. Attachments Details of attachments (if any): The Interim Report of Neuren Pharmaceuticals Ltd for the half-year ended 30 June 2024 is attached. 12. Signed Signed ___________________________ Patrick Davies Non-Executive Chair Melbourne Date: 26 August 2024 Neuren Pharmaceuticals Ltd ABN 72 111 496 130 Consolidated Interim Financial Report for the Half-Year ended 30 June 2024 Neuren Pharmaceuticals Ltd Contents 30 June 2024 Corporate directory Directors' report Directors' declaration Consolidated interim statement of profit or loss and other comprehensive income Consolidated interim statement of financial position Consolidated interim statement of changes in equity Consolidated interim statement of cash flows Notes to the consolidated interim financial statements Independent auditor's review report 1 2 3 6 7 8 9 10 11 18 Neuren Pharmaceuticals Ltd Corporate directory 30 June 2024 Directors Patrick Davies (Non-Executive Chair) Jonathan Pilcher (Chief Executive Officer/Managing Director) Dr Trevor Scott (Non-Executive Director) - (retired 30 June 2024) Dianne Angus (Non-Executive Director) Dr Jenny Harry (Non-Executive Director) Joe Basile (Non-Executive Director) Company secretary Lauren Frazer Registered office At the offices of Lowndes Jordan Level 15 HSBC Tower 188 Quay Street Auckland 1141 New Zealand Principal place of business Suite 201, 697 Burke Rd Camberwell Victoria 3124 Australia Share register Link Market Services Limited Tower 4, 727 Collins Street Docklands Victoria 3008 Australia Auditor Grant Thornton New Zealand Audit Limited Stock exchange listing Neuren Pharmaceuticals Ltd shares are listed on the Australian Securities Exchange (ASX code: NEU) Website www.neurenpharma.com 2 Neuren Pharmaceuticals Ltd Directors' report 30 June 2024 The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'consolidated entity') consisting of Neuren Pharmaceuticals Ltd (referred to hereafter as the 'company' or 'parent entity') and the entities it controlled at the end of, or during, the half-year ended 30 June 2024. Directors The following persons were directors of Neuren Pharmaceuticals Ltd during the whole of the financial half-year and up to the date of this report, unless otherwise stated: Patrick Davies (Non-Executive Chair) Jonathan Pilcher (Chief Executive Officer/Managing Director) Dr Trevor Scott (Non-Executive Director) - (retired 30 June 2024) Dianne Angus (Non-Executive Director) Dr Jenny Harry (Non-Executive Director) Joe Basile (Non-Executive Director) Principal activities During the financial half-year the principal continuing activities of the consolidated entity consisted of: ● Development of pharmaceutical products for the treatment of neurodevelopmental disorders ● Milestone and royalty revenue from licence of intellectual property Review of operations Neuren Pharmaceuticals Limited (“Neuren” or the “Company”), and its subsidiaries (collectively the “Group”) is a biopharmaceutical company, incorporated in New Zealand and listed on the Australian Securities Exchange (ASX: NEU). Neuren is developing new drug therapies to treat multiple serious neurological disorders that emerge in early childhood. Trofinetide In April 2023, Neuren’s worldwide partner for trofinetide, Acadia Pharmaceuticals (NASDAQ: ACAD) launched DAYBUE™ (trofinetide) in the United States as the first approved treatment for Rett syndrome. Net sales for the half-year to 30 June 2024 were US$160.5 million, delivering royalties of A$24.3 million to Neuren. Acadia has provided guidance for full-year net sales in 2024 of US$340-370 million. Assuming this guidance is met and an exchange rate of 0.65, Neuren anticipates earning royalties of A$55-61 million as well as A$77 million from the first sales milestone payment which is due for the first calendar year in which net sales exceed US$250 million. Adoption of DAYBUE in the diagnosed Rett syndrome population has been faster than expected and caregivers and physicians have continued to report meaningful improvements in patients. At 1 August 2024, approximately 900 patients were on treatment with DAYBUE, with the high demand well supported by access from Medicaid and private health insurance payors. In the United States there are approximately 5,000 diagnosed Rett syndrome patients and prevalence studies suggest the total number of patients may be 6,000 to 9,000. The rate of persistence on therapy continues to trend more than 10% higher than the experience in clinical trials, with the rate for patients after 9 months of treatment currently at 58%. Penetration continues to increase, with approximately 30% of the 5,000 diagnosed patients having initiated therapy. In market research, physicians surveyed stated that over the next 24 months they expect to expand prescribing to more than 70% of their eligible patients. 3 Neuren Pharmaceuticals Ltd Directors' report 30 June 2024 Real-world experience on therapy is an important source of information, which can be more readily understood than clinical trial data. In June 2024, Acadia presented interim data from the open-label real-world LOTUS™ study at the 2024 International Rett Syndrome Foundation (IRSF) Annual Scientific Meeting. LOTUS is an ongoing, caregiver-reported study evaluating the efficacy and tolerability outcomes in patients with Rett syndrome treated with DAYBUE. Six-month interim findings evaluating DAYBUE in 101 Rett syndrome patients with an age range of two to 60 years old from the Phase 4, observational, prospective study showed caregivers for 67.7% to 82.2% of enrolled participants reported improvements at months 1 to 6 in at least one Rett syndrome symptoms category. This was measured using the Behavioral Improvement Questionnaire (BIQ) developed by Acadia in consultation with Rett experts and caregivers. The most consistently reported improvements over six months were nonverbal communication (58.5%), alertness (51.2%) and social interaction/connectedness (40.2%). Caregivers also completed the Gastrointestinal (GI) Health Questionnaire, developed by Acadia for this study. At month 6 diarrhea was reported by 31.7% of caregivers. Some participants reported initiating therapy on doses less than half of the FDA approved dose and increasing over several weeks; the majority of patients were on >90% of labeled dose by week 10. Under the terms of the licence agreement with Acadia, Neuren is eligible to receive ongoing quarterly royalties on net sales of trofinetide in North America, plus milestone payments of up to US$350 million on achievement of a series of four thresholds of total annual net sales, plus one third of the market value of the Rare Pediatric Disease Priority Review Voucher that was awarded to Acadia by the FDA, contingent on Acadia selling or using the voucher. Neuren estimates the value of its one third share as US$33 million. For Canada, which is included in the economics for North America, Acadia’s New Drug Submission (NDS) filing was accepted for Priority Review by Health Canada, which means there is potential for approval around year-end 2024. Acadia is also advancing in key markets outside North America. For Europe, Acadia’s Pediatric investigation plan (PIP) was filed with and accepted by the European Medicines Agency (EMA). Acadia is planning a potential Marketing Authorisation Application filing in Q1 2025. For Japan, Acadia has had productive discussions with the regulatory agency (PMDA), including potential clinical development plans. NNZ-2591 Neuren is developing a second drug NNZ-2591 for multiple serious neurodevelopmental disorders with different genetic origins that emerge in early childhood and have no or limited approved treatment options. Recognising the urgent unmet need, all programs have been granted “orphan drug” designation in the United States. Orphan drug designation provides incentives to encourage development of therapies for rare and serious diseases. In May 2024, Neuren announced positive top-line results from the Phase 2 clinical trial of NNZ-2591 in children with Pitt Hopkins syndrome (PTHS). After treatment for 13 weeks, significant improvement was observed by both clinicians and caregivers in clinically important aspects of PTHS, including communication, social interaction, cognition and motor abilities. Clinician and caregiver global efficacy measures showed a level of improvement considered clinically meaningful. The PTHS Clinical Global Impression of Improvement (CGI-I) mean score was 2.6, with 9 out of 11 children showing improvement assessed by clinicians. The PTHS Caregiver Overall Impression of Change (CIC) mean score was 3.0, with 8 out of 11 children showing improvement assessed by caregivers. NNZ-2591 was well tolerated and demonstrated a good safety profile. In August 2024, Neuren announced positive top-line results from the Phase 2 clinical trial of NNZ-2591 in children with Angelman syndrome (AS). NNZ-2591 was safe and well tolerated as an oral liquid dose and improvements were seen in clinically important aspects of AS. Clinician and caregiver global efficacy measures showed a level of improvement from baseline that was statistically significant and considered clinically meaningful. The AS Clinical Global Impression of Improvement (CGI-I) mean score was 3.0, with 11 out of 13 children showing improvement assessed by clinicians. The AS Caregiver Overall Impression of Change (CIC) mean score was 3.2, with 8 out of 12 children showing improvement assessed by caregivers. In the 3-12 years age group all 8 children showed improvement on both measures, with a mean CGI-I score of 2.8 and a mean CIC score of 2.6. The positive results of NNZ-2591 in PTHS and AS followed the announcement of positive top-line results from the Phase 2 clinical trial of NNZ-2591 in children with Phelan McDermid syndrome (PMS) in December 2023. An End of Phase 2 Meeting with the US Food and Drug Administration (FDA) for NNZ-2591 in PMS is scheduled for September 2024, at which Neuren will seek guidance on the remaining clinical development program. In parallel, manufacture of supplies for Phase 3 clinical trials is progressing as planned. Neuren has an open IND with the FDA for NNZ-2591 in PraderWilli syndrome and is also conducting pre-clinical studies for NNZ-2591 in other undisclosed indications. 4 Neuren Pharmaceuticals Ltd Directors' report 30 June 2024 Financial commentary The consolidated interim financial statements for the half-year are presented on pages 7 to 17. All amounts in the Financial Statements are shown in Australian dollars unless otherwise stated. The Group’s net profit after income tax for the half-year ended 30 June 2024 was A$8.0 million, compared with a net profit after tax of A$47.8 million for the half-year ended 30 June 2023. Revenue of A$24.3 million was earned under the licence agreement with Acadia (30 June 2023: A$62.9 million). Royalty income increased to A$24.3 million from A$3.5 million in the half-year ended 30 June 2023. This increase was offset by milestone revenue in the half-year to 30 June 2023 of A$59.4 million, which was earned on the first commercial sale of DAYBUE. Other income includes interest income of A$5.8 million (30 June 2023: A$0.7 million). In addition, a gain of A$1.9 million on the fair value of outstanding forward contracts to sell Australian dollars and buy US dollars was recognised at 30 June 2024 (2023: A$0.1 million). Research and development costs increased by A$6.1 million, due to higher expenditure for the half- year ended 30 June 2024 for the NNZ-2591 Phase 2 clinical trials and the foundational work to prepare for Phase 3 development of NNZ-2591 across multiple indications. Corporate and administrative costs decreased by A$0.7 million. Income tax expense recognised for the half-year ended 30 June 2024 was A$3.8 million (30 June 2023: A$1.8 million). The basic earnings per share for the half-year to 30 June 2024 was A$0.0628 (half-year to 30 June 2023: earnings per share A$0.378) based on a weighted average number of shares outstanding of approximately 127.7 million (half-year to 30 June 2023: 126.3 million). Total cash and short-term investments at 30 June 2024 were A$213.2 million (31 December 2023: A$228.5 million). Net cash used in operating activities was A$20.5 million compared with net cash generated of A$44.9 million for half-year to 30 June 2023. This is mainly due to lower receipts from licence agreements and a tax payment of A$34 million made in the half-year ended 30 June 2024 for the 2023 year, compared with nil in the half-year to 30 June 2023. Receipts from licence agreements for the half-year 30 June 2024 included A$24.4 million in quarterly royalties, while the half-year to 30 June 2023 included the receipt of A$59.8 million from Acadia for the first commercial sale milestone. 5 Neuren Pharmaceuticals Ltd Directors' declaration 30 June 2024 The Directors of Neuren Pharmaceuticals Limited ("Neuren") declare that: The accompanying consolidated interim financial statements of Neuren and its subsidiaries for the half-year ended 30 June 2024 and the notes to those consolidated interim financial statements: · comply with International Accounting Standard 34 and NZ IAS 34 Interim Financial Reporting; and · present fairly, in all material respects, the financial position as at 30 June 2024 and of the performance for the half-year ended on that date of Neuren and its subsidiaries. In the Directors’ opinion there are reasonable grounds to believe that Neuren will be able to pay its debts as and when they become due and payable. This report is signed and the declaration is made in accordance with a resolution of the Board of Directors dated 27 August 2024. On behalf of the directors ___________________________ Patrick Davies Non-Executive Chair ___________________________ Joe Basile Non-Executive Director 26 August 2024 Melbourne 6 Neuren Pharmaceuticals Ltd Consolidated interim statement of profit or loss and other comprehensive income For the half-year ended 30 June 2024 Half year ended Jun 2024 $'000 Half year ended Jun 2023 $'000 6 24,327 62,926 7 7,779 32,106 1,479 64,405 Expenses Research and development costs Corporate and administrative costs Total expenses (17,889) (2,374) (20,263) (11,739) (3,044) (14,783) Profit before income tax expense 11,843 49,622 (3,827) (1,817) 8,016 47,805 Items that may be reclassified subsequently to profit or loss Foreign currency translation 3,513 (13) Other comprehensive income for the half-year, net of tax 3,513 (13) Total comprehensive income for the half-year attributable to the owners of Neuren Pharmaceuticals Ltd 11,529 47,792 Note Revenue Revenue from contracts with customers Other income Total income Income tax expense 8 Profit after income tax expense for the half-year attributable to the owners of Neuren Pharmaceuticals Ltd Other comprehensive income Cents Basic earnings per share Diluted earnings per share 3 3 6.28 6.13 Cents 37.84 36.76 The above consolidated interim statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes 7 Neuren Pharmaceuticals Ltd Consolidated interim statement of financial position As at 30 June 2024 Note As at 30 Jun As at 31 Dec 2024 2023 $'000 $'000 Assets Current assets Cash and cash equivalents Short term investments Trade and other receivables Total current assets 2,571 210,602 14,868 228,041 17,094 211,445 18,617 247,156 35 75 110 43 771 814 228,151 247,970 Current liabilities Trade and other payables Derivative liabilities Income tax payable Total current liabilities 4,476 306 4,188 8,970 3,418 2,226 37,119 42,763 Non-current liabilities Provisions Total non-current liabilities 29 29 - 8,999 42,763 219,152 205,207 175,696 4,229 (7,177) 46,404 173,127 4,382 (10,690) 38,388 219,152 205,207 Non-current assets Plant and equipment Deferred tax asset Total non-current assets Total assets Liabilities Total liabilities Net assets Equity Share capital Share option reserve Currency translation reserve Retained earnings 9 Total equity The above consolidated interim statement of financial position should be read in conjunction with the accompanying notes 8 Neuren Pharmaceuticals Ltd Consolidated interim statement of changes in equity For the half-year ended 30 June 2024 Share option reserve $'000 Currency translation reserves $'000 167,740 3,222 (10,680) (118,693) 41,589 Profit after income tax expense for the half-year Other comprehensive income for the half-year, net of tax - - - 47,805 47,805 - - (13) - (13) Total comprehensive income for the half-year - - (13) 47,805 47,792 1,104 - - - 1,104 (7) 421 1,035 (421) - - (7) 1,035 - 169,258 3,836 (10,693) (70,888) 91,513 Share option reserve $'000 Currency translation reserves $'000 173,127 4,382 (10,690) 38,388 205,207 Profit after income tax expense for the half-year Other comprehensive income for the half-year, net of tax - - - 8,016 8,016 - - 3,513 - 3,513 Total comprehensive income for the half-year - - 3,513 8,016 11,529 277 - - - 277 (9) - 765 - - (9) 765 918 1,383 (918) - - - 1,383 175,696 4,229 (7,177) 46,404 219,152 Share capital $'000 Balance at 1 January 2023 Transactions with owners in their capacity as owners: Loan funded shares converted Issue costs on conversion of loan funded shares Share based payments Transfer on conversion of loan funded shares Balance at 30 June 2023 Share capital $'000 Balance at 1 January 2024 Transactions with owners in their capacity as owners: Loan funded shares converted Issue costs on conversion of loan funded shares Share-based payments Transfer on conversion of loan funded shares and options Share options exercised Balance at 30 June 2024 Accumulated Total equity deficit $'000 $'000 Retained earnings $'000 Total equity $'000 The above consolidated interim statement of changes in equity should be read in conjunction with the accompanying notes 9 Neuren Pharmaceuticals Ltd Consolidated interim statement of cash flows For the half-year ended 30 June 2024 Note Cash flows from operating activities Receipts from license agreement Income tax paid Withholding tax paid Interest received GST refunded Payments for employees and directors Payments to other suppliers Half year ended Jun 2024 $'000 Half year ended Jun 2023 $'000 24,429 (34,163) (1,222) 5,929 221 (2,193) (13,537) 59,810 (2,910) 766 130 (2,993) (9,925) (20,536) 44,878 Cash flows from investing activities Purchase of plant and equipment Less cash transferred from/(to) short-term investments (i) (3) 843 (18) (47,286) Net cash from/(used in) investing activities 840 (47,304) 1,660 (9) 1,104 (7) 1,651 1,097 (18,045) 17,094 3,522 (1,329) 40,180 (462) 2,571 38,389 Net cash (used in)/from operating activities 5 Cash flows from financing activities Proceeds from issue of shares Payment of share issue expenses 9 9 Net cash from financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at the beginning of the financial half-year Effects of exchange rate changes on cash and cash equivalents Cash and cash equivalents at the end of the financial half-year (i) Following the receipt of the first commercial sale milestone payment from Acadia, the Company is holding more funds than are required to meet currently forecast short-term cash commitments. As a result, the Company has reclassified cash held in short-term deposits from Cash and Cash Equivalents to Short-term Investments. The above consolidated interim statement of cash flows should be read in conjunction with the accompanying notes 10 Neuren Pharmaceuticals Ltd Notes to the consolidated interim financial statements 30 June 2024 Note 1. Nature of the business Neuren Pharmaceuticals Limited (“Neuren” or the “Company”), and its subsidiaries (collectively the “Group”) is a publicly listed biopharmaceutical company developing drugs for neurological disorders. The Company is a limited liability company incorporated in New Zealand. The address of its registered office in New Zealand is at the offices of Lowndes Jordan, Level 15 HSBC Tower, 188 Quay Street, Auckland 1141. Neuren operates in Australia and its ordinary shares are listed on the Australian Securities Exchange (ASX code: NEU). These consolidated interim financial statements were approved for issue by the Board of Directors on 27 August 2024. Note 2. Material accounting policy information Basis of preparation These condensed consolidated interim financial statements are for the half-year ended 30 June 2024 and have been prepared in accordance with, and comply with International Accounting Standard 34 and NZ IAS 34 Interim Financial Reporting. The Group is a Tier 1 for-profit entity under the External Reporting Board Accounting Standards Framework in New Zealand. New or amended Accounting Standards and Interpretations adopted There have been no significant changes in accounting policies during the current period. The accounting policies that materially affect the measurement of the Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income, Consolidated Interim Statement of Financial Position, Consolidated Interim Statement of Changes in Equity and the Consolidated Interim Statement of Cash Flows have been applied on a basis consistent with those used in the audited financial statements for the year ended 31 December 2023 and the unaudited interim financial statements for the half-year ended 30 June 2023. There is no cyclical seasonality of interim operations. On 1 January 2024, the Group changed its' functional currency from Australian dollars to US dollars. At 30 June 2024, the presentation currency of the Group is Australian dollars and the functional currency is US dollars. These interim financial statements do not include all the notes of the type normally included in an annual financial report. Accordingly, this interim report is to be read in conjunction with the annual report for the year ended 31 December 2023. Going concern assumption The Directors monitor the Group’s cash position and initiatives to ensure that adequate funding continues to be available for the Group to meet its business objectives. The Group recorded a profit after tax of $8.0 million for the period ended 30 June 2024 and had negative operating cash flows for the period of $20.5 million. The Group had cash of $2.6 million and short-term investments (term deposits) of $210.6 million at 30 June 2024. It is the considered view of the Directors that the group will have access to adequate resources to meet its ongoing obligations for at least a period of 12 months from the date of signing these financial statements. On this basis, the Directors have assessed it is appropriate to adopt the going concern basis in preparing the financial statements. The financial statements do not include any adjustments that would result if the Group was unable to continue as a going concern. Comparatives Where deemed necessary, the comparatives have been reclassified to achieve consistency with the current financial halfyear. Note 3. Earnings per share Basic earnings per share is calculated by dividing the profit for the period attributable to the equity holders of the company by the weighted average number of ordinary shares on issue during the period excluding shares held as treasury stock. Diluted earnings per share is calculated by dividing the profit attributable to ordinary equity holders of the company by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares. 11 Neuren Pharmaceuticals Ltd Notes to the consolidated interim financial statements 30 June 2024 Note 3. Earnings per share (continued) Half year ended Jun 2024 $'000 Half year ended Jun 2023 $'000 8,016 47,805 Profit after income tax attributable to the owners of Neuren Pharmaceuticals Ltd Number Number Weighted average number of ordinary shares used in calculating basic earnings per share Adjustments for calculation of diluted earnings per share: Options over ordinary shares 127,674,028 126,336,947 3,145,014 3,712,184 Weighted average number of ordinary shares used in calculating diluted earnings per share 130,819,042 130,049,131 Cents Cents Basic earnings per share Diluted earnings per share 6.28 6.13 37.84 36.76 Note 4. Operating segments Identification of reportable operating segments The segment reporting reflects the way information is reported internally to the chief operating decision maker. The Board of the Group has been identified as the chief operating decision maker. The Board assesses the financial performance and position of the group and makes strategic decisions. The Group has two reportable operating segments, commercial products and research and development. Reportable segment Principal activities Commercial products Research & development Milestone and royalty revenue from licence of intellectual property. Development of pharmaceutical products for the treatment of neurodevelopmental disorders. Commercial products Jun-24 Jun-23 $'000 $'000 Revenue Research and development costs Interest income Other income Other expenses Profit before income tax Income tax expense Profit after income tax Research & development Jun-24 Jun-23 $'000 $'000 Corporate Jun-24 Jun-23 $'000 $'000 Total Jun-24 Jun-23 $'000 $'000 24,327 62,926 - - - - 24,327 62,926 - (57) - (17,889) - (11,682) - 5,836 1,943 (2,374) 684 795 (3,044) (17,889) 5,836 1,943 (2,374) (11,739) 684 795 (3,044) 24,327 62,869 (17,889) (11,682) 5,405 (1,565) 11,843 49,622 - - - - (3,827) (1,817) (3,827) (1,817) 24,327 62,869 (17,889) (11,682) 1,578 (3,382) 8,016 47,805 All revenue from licences of intellectual property is from Acadia Pharmaceuticals Inc. (Acadia) and is from the United States. Assets and liabilities are not allocated to segments and are therefore not reported. 12 Neuren Pharmaceuticals Ltd Notes to the consolidated interim financial statements 30 June 2024 Note 5. Reconciliation of profit after income tax to net cash (used in)/from operating activities Half year ended Jun 2024 $'000 Half year ended Jun 2023 $'000 Profit after income tax expense for the half-year 8,016 47,805 Adjustments for: Depreciation of property, plant and equipment Share based payments expense Foreign exchange loss/(gain) Unrealised gain on financial assets 11 765 20 (1,920) 6 1,035 (250) (131) Change in working capital: Decrease/(increase) in trade and other receivables (Decrease)/increase current and deferred taxes Increase in trade and other payables 3,749 (32,235) 1,058 (7,526) 1,817 2,122 Net cash (used in)/from operating activities (20,536) 44,878 Note 6. Revenue from contracts with customers Disaggregation of revenue from contracts with customers The Group derives revenue fr