6. INCOME TAX (CONTINUED) Deferred tax Opening balance $’000 Recognised in profit or loss $’000 Closing balance $’000 2023 Patents (183) (14) (197) Capital raising costs (276) 77 (199) Employee benefits (92) (47) (139) Unrealised foreign exchange (177) (491) (668) Interest receivable 51 408 459 Other temporary differences (14) (13) (27) (691) (80) (771) Deferred tax not recognised 691 (691) – Net deferred tax asset – (771) (771) 2022 Patents (217) 34 (183) Capital raising costs (403) 127 (276) Employee benefits (76) (16) (92) Unrealised foreign exchange – (177) (177) Other temporary differences (10) 47 37 (706) 15 (691) Deferred tax not recognised 706 (15) 691 Net deferred tax asset – – – 2023 $’000 2022 $’000 Gross tax losses for which no deferred tax asset has been recognised (a) 62,475 106,115 (a) Of these gross tax losses, $62.5 million (2022: $62.6 million) relate to New Zealand tax losses, which are unlikely to be utilised unless future taxable income is generated in New Zealand. The movement in New Zealand gross tax losses is due to the New Zealand tax losses being translated at the closing foreign exchange rate at each reporting date. All previously unrecognised Australian tax losses have been utilised for the year ended 31 December 2023. There are no franking credits or imputation credits available for use as at 31 December 2023 (2022: nil). 7. EARNINGS PER SHARE Basic earnings per share is calculated by dividing the profit for the year attributable to the equity holders of the company by the weighted average number of ordinary shares on issue during the year excluding shares held as treasury stock. Diluted earnings per share is calculated by dividing the profit attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares. 2023 2022 Earnings after income tax attributable to equity holders (basic) - ($'000) 157,081 184 Weighted average shares outstanding (basic) - (No.) 127,069,512 125,965,676 Basic earnings per share $1.236 $0.001 Earnings after income tax attributable to equity holders (diluted) - ($'000) 157,081 184 Weighted average shares outstanding (diluted) - (No.) 130,768,487 128,908,995 Diluted earnings per share $1.201 $0.001 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED Neuren Pharmaceuticals Limited Annual Report 2023 42
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