Memphasys : Appendix 4D and Half Year Report and Accounts

For personal use only

Memphasys Limited

Half Year Report

31 December 2021

		Appendix 4D
		Half year report
Name of the entity:	Memphasys Limited
ABN:	33 120 047 556
Half year ended					Half year ended
('current period')					('previous corresponding period')
31 December 2021						31 December 2020
Results for announcement to the market
							$A'000
Sales from continuing operations		Up		from 0	to	14
Gross profit (loss) from continuing operations	Up		from 0	to	5
Profit (loss) from continuing activities after tax	Up	30%	to	(938)
attributable to members
Net Profit (loss) for the period attributable to	Up	30%	at	(938)
members
Dividends (distributions)				Amount per security Franked amount per
							security
Final dividend					Nil		Nil
Previous corresponding period					Nil		Nil

Record date for determining entitlements to the

dividend,N/A Brief explanation of any of the figures reported above:

Refer to "Principal Activities and review of operations in the directors report attached to the Appendix 4D"

NTA backing	31 December 2021	31 December 2020
Net tangible asset backing per ordinary security	(0.0026) dollars	0.001 dollars

31 December 2021

Appendix 4D

For personal use only

Memphasys Limited

Half Year Report

31 December 2021

Audit/Review Status

This report is based on accounts to which one of the following applies:(Tick one)

The accounts have been audited	The accounts have been subject to review	X
The accounts are in the process of being	The accounts have not yet been audited or
audited or subject to review	reviewed

If the accounts have not yet been audited or subject to review and are likely to be subject to dispute or qualification, a description of the likely dispute or qualification:

The review report is an unqualified review opinion

31 December 2021

Appendix 4D

For personal use only

Memphasys Limited

and its Controlled Entities ABN 33 120 047 556

Interim Financial Report

for the half-year ended 31 December 2021

For personal use only

Memphasys Limited and its Controlled Entities

Financial report 31 December 2021

Contents

Directors' Report	3
Consolidated Statement of Profit or Loss and Other Comprehensive Income	9
Consolidated Statement of Financial Position	10
Consolidated Statement of Changes in Equity	11
Consolidated Statement of Cash Flows	12
Notes to the Consolidated Interim Financial Statements	13
Directors' Declaration	19
Auditor's Independence Declaration	20
Independent Auditor's Review Report to the Members of Memphasys Limited	21 - 22
Corporate Directory	23

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For personal use only

Memphasys Limited and its Controlled Entities

Directors' Report

The Directors submit their report for the consolidated entity consisting of Memphasys Limited ("the Company") and its controlled entities ("MEM" or the "Group") for the half-year ended 31 December 2021.

Directors

The names of the Directors of the Company in office at any time during or since the end of the interim period are:

Ms Alison Coutts	Executive Chairman
Mr Andrew Goodall	Non-Executive Director
Mr Shane Hartwig	Independent Non-Executive Director
Mr Paul Wright	Independent Non-Executive Director

REVIEW OF OPERATIONS

Memphasys has made sound progress in the past 6 months, with the Company transitioning with its FelixTM system from product development to commencing commercial sales. FelixTM is a novel automated device for quickly and gently separating high quality sperm from a raw semen sample for use in human IVF procedures. The result comes despite continued difficulties caused by COVID-19 to supply chains and to the global slowdown and temporary shutting of IVF clinics.

Commencement of FelixTM Sales for Clinical Use

During the half-year period, Memphasys completed its first clinical sale of its FelixTM System to the Coimbatore Womens Hospital Centre in India, one of the 13 international participants in the Felix™ system Key Opinion Leader ("KOL") in vitro study.

This sale comprised a FelixTM desktop console, and an initial supply of sterile Felix single-use cartridges used to quickly process a semen sample and separate out the best sperm cells.

The Coimbatore Womens Hospital will initially utilise the Felix™ system for couples where the male has demonstrated potential signs of below average sperm quality (low sperm concentration, poor motility, high DNA damage or poor morphology), which according to the Centre represents almost half of male semen samples they deal with. Their male fertility (andrology) laboratory is a regional reference centre in Tamil Nadhu.

Memphasys believes the Coimbatore sale has a strong strategic significance, with India representing one of four 'early markets' for the Felix™ system. The Indian market is sizable, accounting for approximately 10% of the global demand for fresh IVF cycles1.

In 2017, approximately 190,000 IVF cycles were performed in India. This number is forecast to rise to 587,570 by 2025.

Sale of Felix for Research Application

Memphasys also completed its first sale of a FelixTM system for research use with a sale to Anhui Women & Children's Hospital in China, a national leader in male infertility research.

The sale was made by Memphasys' China distributor, Diagens Biotechnology Company Ltd ("Diagens").

Diagens is a Chinese company that manufactures and distributes proprietary and other products to its network of 500+ assisted reproduction centres and 300+ prenatal diagnosis centres in China. Memphasys has been collaborating with Diagens for the past 18 months.

Diagens is working with Memphasys to prepare a submission to China's National Medical Products Administration (NMPA) - the medical regulatory authority in China - on a potential fast track "Green Channel"

• Allied Market Research Report, 2019

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