Company: ATHE
Filing Date: 2025-08-29
Form Type: 20-F
Source: 0001213900-25-082027
Chunk: 129

Company: ALTERITY THERAPEUTICS LTD
Filing Date: 2025-08-29
Form: 20-F
Item: Item 18
Chunk 129
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 30, 2025. Management, with input from an independent specialist, assessed the Company’s R&D activities and related expenditures and applied significant judgement in determining which are eligible for a refundable tax offset under the Australian Government R&D tax incentive scheme, and then recorded the expected R&D tax incentive amount as a receivable in the consolidated statement of financial position and as other income in the consolidated statement of profit or loss and other comprehensive loss.

The principal considerations for our determination that performing procedures relating to the R&D tax incentive receivable is a critical audit matter are the significant judgements made by management to determine whether the R&D activities and related expenditures are eligible for a refundable tax offset under the Australian Government R&D tax incentive scheme. This in turn led to a high degree of auditor subjectivity, judgement and effort in performing procedures to evaluate the audit evidence related to the valuation of the R&D tax incentive receivable.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included, amongst others, testing management’s process for determining the R&D tax incentive receivable, which included: (i) evaluating the appropriateness of the methodology used to estimate the amount of the R&D tax incentive receivable; (ii) performing a retrospective comparison of the prior year R&D tax incentive receivable estimate to the amount of cash received in the current year after lodgment of the R&D tax incentive claim to assess the historical accuracy of management’s estimation; (iii) assessing the completeness of the underlying expense data used to determine the R&D tax incentive receivable; and (iv) evaluating, for a selection of eligible expenditures, the accuracy of the expenditure and the reasonableness of management’s assessment of eligibility. The work of management’s specialist was used in performing the procedures to evaluate the reasonableness of the R&D tax incentive receivable. As a basis for using this work, the specialist’s qualifications were understood and the Company’s relationship with the specialist was assessed. The procedures performed also included an evaluation of the methods and significant assumptions used by the specialist and an evaluation of the specialist’s findings.

/s/ PricewaterhouseCoopers

Melbourne, Australia

August 29, 2025

We have served as the Company’s auditor since 2006.

F-3

ALTERITY THERAPEUTICS LIMITED

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

 (in Australian dollars, except number of shares)

                                                                                   June 30,