Company: ATHE
Filing Date: 2025-08-29
Form Type: 20-F
Source: 0001213900-25-082027
Chunk: 71

Company: ALTERITY THERAPEUTICS LTD
Filing Date: 2025-08-29
Form: 20-F
Item: Item 5
Chunk 71
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 consisting of computer equipment, furniture and fixtures, fit-out costs and laboratory equipment that is being used in connection with our research facility at The University of Melbourne. Capital expenditures for equipment are depreciated on a straight-line basis over the estimated useful lives of 3 to 20 years, with a net balance as of June 30, 2025 of A$3,848. We currently do not have significant capital spending requirements, but we expect to continue to engage in capital spending consistent with anticipated growth in our operations and personnel.

We believe the Australian Government tax incentive scheme relating to eligible research and development activities, introduced on July 1, 2011, will provide us with significant benefits in future years. Such eligible R&D activities include but are not limited to:

●   Core activities, which are experimental activities whose outcome cannot be known or determined in advance, but can only be determined by applying a systematic progression of work;
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●   Core activities conducted for the purpose of generating new knowledge (including new knowledge in the form of new or improved processes and materials); or
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●   Supporting activities that are directly related and designed to support the above.
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Under the research and development tax incentive scheme, entities with an aggregated turnover for the income year of less than A$20 million are entitled to a 43.5% refundable tax incentive. In the year ended June 30, 2025, we recorded A$3.9 million in other income with respect to funds we expect to receive in relation to the 2025 financial year under the research and development tax incentive scheme.

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We have incurred recurring losses since inception, including operating losses of $12.1 million and $19.1 million for the years ended June 30, 2025 and 2024, respectively, and an operating cash outflow of $11.5 million and $12.6 million, respectively for such years. We expect to continue incurring losses into the foreseeable future and will need to raise additional capital to continue the development of our planned research and development programs. The consolidated financial statements have been prepared assuming that we will continue as a going concern as a result of the funds raised during the financial year.

Cash Flows

The following table summarizes our cash flows for the periods presented, which contemplates the realisation of its assets and the satisfaction of our liabilities in the normal course of business :

                                                                                           Year ended June 30,                            
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                                                               2025                      2024