ANNUAL REPORT 2026 53 20. Commitments and contingencies As at 30 June 2026, the Consolidated Entity had no significant commitments and contingencies. As at 30 June 2025, the Consolidated Entity had entered into two material agreements relating to the Phase I study of Xolatryp, resulting in the following outstanding contractual commitments: • Scientia Clinical Research: A committed balance of $99,051 as at 30 June 2025 • Southern Star Research: A committed balance of $121,793 as at 30 June 2025 21. Financial instruments Capital management The Consolidated Entity manages its capital to ensure entities in the Consolidated Entity will be able to continue as a going concern while maximising the return to stakeholders through the optimisation of the debt and equity balance. The Company is not subject to any externally imposed capital requirements, except for Chapter 7 of ASX listing rules including a 15% placement capacity on new equity raising. During the year, shareholders approved a capital raising by way of a placement of 27.5 million CDIs. A further $2.29 million was received during the year from the exercise of options. Given the nature of the business, the Consolidated Entity monitors capital on the basis of current business operations and cash flow requirements. Categories of financial instruments 2026 2025 $ $ Financial assets Cash and cash equivalents 8,384,581 2,930,601 2026 2025 $ $ Financial liabilities Trade and other payables 590,262 1,481,750 The fair value of the above financial instruments approximates their carrying values. Financial risk management objectives For the year, the only material financial risk of the Consolidated Entity was liquidity risk. In common with all other businesses, the Consolidated Entity is exposed to risks that arise from its use of financial instruments. This note describes the consolidated entity's objectives, policies and processes for managing those risks and the methods used to measure them. Further quantitative information in respect of those risks is presented throughout these financial statements. There have been no substantive changes in the Consolidated Entity's exposure to financial instrument risks, its objectives, policies and processes for managing those risks or the methods used to measure them from previous periods unless otherwise stated in this note. The Board has overall responsibility for the determination of the consolidated entity'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 consolidated entity's finance function.
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