Nyrada Inc - Annual Report 2021

Annual Report FY21 15 Directors’ Report Principal activities Nyrada is a preclinical stage, drug discovery and development company, specialising in novel small molecule drugs to treat cardiovascular and neurological diseases. The Company’s two lead programs centre on cholesterol-lowering and brain injury, each targeting market sectors of significant size and unmet clinical need. The programs are focused on developing an oral, small molecule cholesterol-lowering drug, and a drug to treat secondary brain damage following a stroke or traumatic brain injury (TBI). Nyrada is a Company incorporated in the state of Delaware US and is listed on the Australian Securities Exchange (ASX:NYR). Significant changes in the state of affairs There were no significant changes in the state of affairs of the Consolidated Entity during the financial year. Financial results The loss for the Consolidated Entity after providing for income tax amounted to $3,539,253 (30 June 2020: $5,773,667). The year ended 30 June 2021 operating results included the following: • Research and Development Tax Incentive refund of $2,286,022 relating to the accrued FY2021 refund of $1,309,650 and received FY2020 refund of $976,372 (2020: $1,075,414 relating to the FY2018/2019 refund). • Research and development costs of $2,175,050 (FY2020: $1,399,999); • Corporate and administration expenses of $895,839 (FY2020: $571,862); • Share-based payment expense of $1,111,622 (FY2020: $2,204,324); • Professional services expense of $509,842 (FY2020: $1,005,316); and • Employee benefits expense of $929,931 (FY2020: $1,342,993) The cash position as at 30 June 2021 was $13,750,743 (30 June 2020: $5,146,169). Review of operations During the 2021 financial year, Nyrada continued to advance its two lead drug development programs: • Cholesterol-Lowering Program: an oral PCSK9 inhibitor drug for the treatment of high blood LDL- cholesterol levels in patients at risk of cardiovascular disease, where statin drugs are poorly tolerated (monotherapy) or ineffective (single pill combination treatment). • Brain Injury Program: a neuroprotectant drug to reduce the impact of secondary brain injury in patients following a stroke or TBI, which can occur following a motor vehicle accident, fall, or sporting injury. Encouraging results have been reported from both these programs throughout the year, building the Company’s confidence in the drug candidates that are advancing well towards Phase I human trials.