Announcement PDF Appendix 4E Annual financial report for the year ended 30 June 2024 1. Details of reporting period Name of entity ABN Reporting Period Previous Corresponding Period Presentation Currency 2. Cynata Therapeutics Limited (the Company) 98 104 037 372 Year ended 30 June 2024 Year ended 30 June 2023 Australian Dollars ($) Results for announcement to the market 30 June 2024 $ 30 June 2023 $ Increase/ (decrease) % Amount change $ Revenues from ordinary activities 2,733,353 2,007,179 36.18% 726,174 Loss from ordinary activities after tax attributable to members 9,744,709 14,277,495 (31.75%) (4,532,786) Net loss for the period attributable to members 9,744,709 14,277,495 (31.75%) (4,532,786) 0.030 0.081 - - Key information Net tangible asset per share 3. Consolidated statement of profit or loss and other comprehensive income Refer to attached consolidated financial statements. 4. Consolidated statement of financial position Refer to attached consolidated financial statements. 5. Consolidated statement of cash flows Refer to attached consolidated financial statements. 6. Consolidated statement of changes in equity Refer to attached consolidated financial statements. 7. Dividends/Distributions No dividends declared in current or prior year. 8. Details of dividend reinvestment plans Not applicable. Cynata Therapeutics Limited Office: L3 100 Cubitt St, Cremorne, VIC 3121, Australia T: +61 3 7067 6940 W: www.cynata.com ABN 98 104 037 372 9. Details of entities over which control has been gained or lost during the period Not applicable. 10. Details of associate and joint venture entities Not applicable. 11. Any other significant information needed by an investor to make an informed assessment of the Company’s financial performance and financial position Refer to attached consolidated financial statements. 12. Foreign entities Refer to attached consolidated financial statements. 13. Commentary on results for period and explanatory information Cynata Therapeutics Limited (“Cynata” or the “Company”) and its controlled entities (“the Group”) incurred a net loss from operations for the financial year ended 30 June 2024 of $9,774,709 (2023: $14,277,495) after accounting for an R&D refund of $2,315,643 (2023: $1,654,310). At 30 June 2024, the Group had a cash balance of $6,205,418 (2023: $16,167,356) and net assets of $7,217,235 (2023: $16,733,481). The net cash outflow from operating activities for the financial year was $9,960,561 (2022: $14,282,729). The Company remains the leader of the burgeoning induced pluripotent stem cell (iPSC) field. During the year ended 30 June 2024, Cynata completed the first iPSC clinical trial worldwide and the Company now has four (4) active clinical programs (including a Phase 2 and a Phase 3 trial), as well as Orphan Drug Designation and a cleared Investigational New Drug (IND) application from the US FDA. All four of the clinical programs advanced materially during the year. Cynata completed patient enrolment in its Phase 1 diabetic foot ulcer (DFU) trial, and commenced patient enrolment in its Phase 2 acute graft versus host disease (aGvHD) trial. Key milestones were also met in the Company’s partnered programs: the University of Sydney completed enrolment in the Phase 3 osteoarthritis clinical trial, while Leiden University Medical Centre secured regulatory and ethics approval to commence the Phase 1/2 kidney transplantation trial. Encouraging preliminary data from the first 16 patients (eight per group) enrolled in the DFU trial were released. During the year, Cynata also created the new position of Chief Business Officer, with a particular focus on business development and partnering. This was done in anticipation of the next stage of the Company’s growth, to help drive forward the commercialisation of its technology. For more information, refer to the attached consolidated financial statements. 14. Audit This report is based on accounts which have been audited. The Auditor’s Report contains an ‘Emphasis of Matter’ paragraph drawing attention to a material uncertainty that may cast a significant doubt about the Group’s ability to continue as a going concern. The attached consolidated financial statements have been prepared on a going concern basis. Please refer to note 3. Dr Kilian Kelly Managing Director & Chief Executive Officer 29 August 2024 Annual Report 2023/2024 Corporate Directory Cynata Therapeutics Limited ACN 104 037 372 Board of Directors Auditors Dr Geoff Brooke Non-Executive Chair Stantons Level 2, 40 Kings Park Road West Perth, Western Australia 6005 Dr Kilian Kelly Managing Director & Chief Executive Officer Dr Darryl Maher Non-Executive Director Dr Paul Wotton Non-Executive Director Ms Janine Rolfe Non-Executive Director Company Secretary Share Registry Automic Registry Services Level 5, 191 St Georges Terrace Perth, Western Australia 6000 Tel: 1300 288 664 (within Australia) +61 2 9698 5414 (outside Australia) Fax: +61 8 9321 2337 Email: hello@automic.com.au Web: www.automic.com.au Mr Peter Webse Stock Exchange Registered Office and Place of Business Level 3, 100 Cubitt Street Cremorne, Victoria 3121 Tel: +61 3 7067 6940 Email: info@cynata.com Website www.cynata.com Australian Securities Exchange Level 50, South Tower, Rialto 525 Collins Street Melbourne, Victoria 3000 ASX Code CYP – fully paid ordinary shares CYPOA – options Annual report for the financial year ended 30 June 2024 Contents Key Highlights 2023-2024 3 Chair’s Letter 4 CEO’s Letter 6 Directors’ Report 8 Operating and Financial Review 18 Remuneration Report (audited) 26 Auditor’s Independence Declaration 40 Independent Auditor’s Report 41 Directors’ Declaration 45 Financial Statements 46 Notes 52 Consolidated Entity Disclosure Statement 80 ASX Additional Information 82  1 2 Cynata Therapeutics Annual Report 2023/2024 Key Highlights 2023-2024 Patient enrolment underway in Australia, USA and Europe for Phase 2 trial in acute Graft-versus-Host Disease (aGvHD) Further aGvHD Phase 1 clinical trial data published in Nature Medicine Encouraging initial results released for Diabetic Foot Ulcers (DFU) Phase 1 clinical trial Agreement with TekCyte Limited to acquire wound dressing technology TM Patient enrolment complete, Phase 3 Osteoarthritis clinical trial and results anticipated in 1H 2026 Approval of CYP-001 Phase 1 Kidney Transplantation clinical trial, expected to commence Q3 2024 $2.3m R&D Tax Incentive rebate received Cash balance of A$6.2m as at 30 June 2024, with forecast cash runway into H2 calendar year 2025 Dr Mathias Kroll appointed to the the newly created position of Chief Business Officer Intellectual property portfolio continues to strengthen Key Highlights 2023-2024 3 Chair’s Letter Dear Shareholders, I am pleased to present to you the Annual Report of Cynata Therapeutics Limited (“Cynata” or “the Company”) for the year ended 30 June 2024. I believe the Company is well positioned to realise the potential to overcome a major obstacle to the commercialisation of these promising therapies. This year marked the beginning of a new era for the Company, after Dr Kilian Kelly was promoted to the position of Chief Executive Officer and Managing Director, effective 1 July 2023. The Company made substantial progress with its clinical development programs over the year, positioning us for multiple key inflection points in the near to medium term. We also further strengthened the management team, with a focus on commercialisation and business development. Our induced pluripotent stem cell (iPSC)-based Cymerus™ platform offers a unique way to manufacture off-the-shelf mesenchymal stem cell (MSC) therapies in a consistent and scalable way. As such, it has the potential to overcome a major obstacle to the commercialisation of these promising therapies, and I believe the 4 Cynata Therapeutics Annual Report 2023/2024 Company is well positioned to realise that potential. We have a broad and diverse clinical pipeline, with each program focussing on indications with substantial unmet medical needs. I was particularly pleased to see each of the Company’s four clinical development programs progressing well over the year. We released encouraging preliminary results from our DFU trial, and we now await the final results, which we expect around the middle of the new financial year. Importantly, the DFU results will be just the first of three upcoming readouts from randomised controlled efficacy trials, with results of the ongoing aGvHD and osteoarthritis trials anticipated within the following 12 to 18 months. We enter the new financial year with over A$6m in cash, which is sufficient to provide us with runway into the second half of calendar year 2025. I would like to extend my thanks to our shareholders for their continued support, as we continue our journey towards the realisation of the value in the Company’s assets. I also thank my fellow Directors and all of our employees for their commitment and endeavour. I am very optimistic about the year ahead and look forward to the team continuing to achieve key milestones. Yours sincerely, Dr Geoff Brooke Chair Chair’s Letter 5 CEO’s Letter Dear Shareholders, The 2024 financial year was one of great progress for Cynata. Clinical Pipeline We are approaching a hugely significant and exciting period of time for the Company, with multiple clinical inflection points upcoming. The Company remains the leader of the burgeoning iPSC field. We completed the first iPSC clinical trial worldwide, and we now have four active clinical programs (including a Phase 2 and a Phase 3 trial), as well as Orphan Drug Designation and a cleared IND4 from the US FDA. All four of our clinical programs advanced materially during the year. We completed patient enrolment in our Phase 1 DFU trial, and commenced patient enrolment in our Phase 2 aGvHD trial. Key milestones were also met in our partnered programs: the University of Sydney completed enrolment in the Phase 3 osteoarthritis 4 6 We also released very encouraging preliminary data from the first 16 patients (eight per group) enrolled in our DFU trial. This analysis found that the median percentage reduction in wound surface area in the active CYP006TK group after 10 weeks’ follow-up was 87.6%, compared to 51.1% in the control group. Furthermore, I was delighted that our two-year follow-up results from our Phase 1 aGvHD clinical trial were published in Nature Medicine,5 which is one of the leading peer-reviewed IND = Investigational New Drug application, which is the clearance required from FDA to conduct clinical trials. 5 clinical trial, while Leiden University Medical Centre secured regulatory and ethics approval to commence the Phase 1/2 kidney transplantation trial. Kelly K, et al. Nat Med. 2024;30:1556–1558. Cynata Therapeutics Annual Report 2023/2024 medical journals worldwide. This was the second publication in Nature Medicine arising from this trial, which underlines the significance of the trial and its outcomes.6 Corporate Update During the year, we created the new position of Chief Business Officer, with a particular focus on business development and partnering. We did this in anticipation of the next stage of the Company’s growth, to help drive forward the commercialisation of our technology. I am pleased that we were able to recruit Dr Mathias Kroll into this role. Mathias, who began his employment with us in April this year, brings a wealth of highly relevant and truly global experience, and I am very confident that he will prove to be a very valuable addition to our team. We also continued to build our robust intellectual property portfolio during the year, with further allowances/grants for several of the Cynata-owned patents in various jurisdictions. This builds on the core intellectual property portfolio that we have in-licenced, including a number of important patents that underpin the Cymerus™ platform, which have been exclusively licensed to the Company by Wisconsin Alumni Research Foundation. FY25 Outlook During the 2025 financial year, we anticipate the completion of patient enrolment in the Phase 2 aGvHD trial, and commencement of patient enrolment in the Phase 1/2 kidney transplantation trial. We are also looking forward to final results from the DFU trial in late 2024 or early 2025. We are approaching a hugely significant and exciting period of time for the Company, with multiple clinical inflection points upcoming – the DFU results are anticipated to be the first of three readouts from randomised controlled clinical trials within a period of approximately 18 months. We are also ramping up our business development efforts, and expect those activities to be bolstered by the additional clinical data that we are anticipating in the near future. I am very grateful for the continued support of the Cynata team, the Board and our shareholders. I am proud of the team’s achievements in the past year, and I am pleased that this has been reflected in a stronger share price in recent months. I look forward with optimism to continuing to build value over the years ahead. Yours sincerely, Dr Kilian Kelly Chief Executive Officer & Managing Director 6 Bloor AJC, et al. Nat Med. 2020;26:1720–1725. CEO’s Letter 7 Directors’ Report The directors of Cynata Therapeutics Limited (“Cynata” or “the Company”) and its controlled entities (“the Group”) submit herewith the annual report of the Group for the financial year ended 30 June 2024. In order to comply with the provisions of the Corporations Act 2001, the directors report as follows: 8 Cynata Therapeutics Annual Report 2023/2024 Board of Directors The names and particulars of the directors of the Group during or since the end of the financial year are: Dr Geoff Brooke MBBS, MBA Independent Chair, joined the Board in May 2019 as Non-Executive Director and appointed Chair on 18 August 2020. Dr Brooke co-founded GBS Venture Partners in 1996 and has more than 30 years’ venture capital experience. He was formerly President of Medvest Inc., a US-based early-stage venture capital group he founded with Johnson & Johnson. Dr Brooke’s experience includes company formation and acquisitions as well as public listings on NYSE, NASDAQ and ASX exchanges. He is a nonexecutive director of Acrux Limited (ASX: ACR) and Chair of Actinogen Medical Limited (ASX: ACW) and has been a founder, executive and director of private and public companies. From 2009 until 2015, Dr Brooke was an independent director of the Victoria Workcover Authority. He also works with a number of other entities, including as a consultant to BioScience Managers. Dr Brooke holds a Bachelor of Medicine/Surgery from Melbourne University and a Masters of Business Administration from IMEDE (now IMD) in Switzerland. Dr Kilian Kelly MPharm, PhD, GAICD Managing Director & Chief Executive Officer as from 1 July 2023. Dr Kelly was appointed as Vice President, Product Development in January 2014 and has since then been a member of Cynata’s executive management team. Dr Kelly has served as Senior Director, Drug Development at Biota Pharmaceuticals Inc. Prior to joining Biota, he was Vice President, Regulatory and Clinical at Mesoblast Ltd. Dr Kelly has also held a variety of regulatory and project management positions with Kendle International, Amgen and AstraZeneca. He holds a Masters in Pharmacy from Robert Gordon University, Aberdeen and a PhD in Pharmaceutical Sciences from Strathclyde University, Glasgow. He is a registered pharmacist and a member of the Royal Pharmaceutical Society, a graduate and member of the Australian Institute of Company Directors (AICD), a member of the International Society for Cell and Gene Therapy (ISCT) and the International Society for Stem Cell Research (ISSCR). He also currently serves on the ISCT Asia-Pacific Industry Committee, the ISSCR Best Practices Regulatory Working Group and the Industry Interface Committee of the Centre for Commercialisation of Regenerative Medicine (CCRM) Australia. Directors’ Report 9 Directors’ Report (cont’d) Dr Darryl Maher MBBS, PhD Independent Non-Executive Director, joined the Board in June 2020. Dr Maher adds global biopharmaceutical and commercialisation capability to the Cynata board, with over 23 years’ experience with CSL Limited. CSL is one of the world’s most successful developers of biologic pharmaceutical products and has a market capitalisation of ~A$130 billion. Dr Maher has had a long successful career in pharmaceutical product development, most recently as the former Vice President of R&D and Medical Affairs at CSL Behring Australia where he was responsible for the development of multiple successful drug products from initiation through to clinical development and ultimately to commercialisation. Dr Maher undertook medical training, qualified as a specialist haematologist and completed a PhD before commencing his career in the pharmaceutical industry. Dr Paul Wotton MBA, PhD Independent Non-Executive Director, joined the Board in June 2016. He is the Executive Chairman of the Biotech LaunchPad at Rice University, Houston. He was President and CEO of Obsidian Therapeutics, Founding CEO of Sigilon Therapeutics (acquired by Lilly) and President and CEO of Ocata Therapeutics, Inc. (NASDAQ: OCAT) which was acquired by Astellas in 2016. Prior to Ocata, Dr Wotton had served as President and CEO of Antares Pharma Inc. (NASDAQ: ATRS). Prior to joining Antares, Dr Wotton was the CEO of Topigen Pharmaceuticals. Earlier in his career, he held senior level 10 Cynata Therapeutics Annual Report 2023/2024 executive positions at SkyePharma plc, Eurand International BV, Penwest Pharmaceuticals, Abbott Laboratories and Merck, Sharp and Dohme. Dr Wotton is a member of the board of Vericel Corporation (NASDAQ: VCEL), Chairman of Dimension Inx., and Chairman of Kytopen Inc. Dr Wotton received his Ph.D. in pharmaceutical sciences from the University of Nottingham. In 2014, he was named EY Entrepreneur of the Year (NJ) in Life Sciences. Ms Janine Rolfe BEc, LLB (Hons), GAICD Independent Non-Executive Director, joined the Board in September 2022. Ms Rolfe brings more than two decades of legal, governance and management experience across multiple sectors, including highly regulated industries and complex global businesses. Ms Rolfe is a professional non-executive director and currently sits on the boards of Ambertech Limited (ASX: AMO) and Cloudwerx Holdings Pty Ltd. Ms Rolfe is also a commissioner for the NSW Independent Casino Commission, a statutory authority. Previously, Ms Rolfe was General Counsel & Company Secretary of Link Group. Prior to that, Ms Rolfe founded the governance consultancy, Company Matters, and worked both as in-house counsel at Qantas and in private practice at Mallesons Stephen Jaques (now King & Wood Mallesons). Dr David Atkins BSc, MBA, PhD Dr Atkins joined the Board in July 2023. He has over 25 years’ experience as a global leader in a broad range of life science and healthcare businesses. Dr Atkins resigned on 13 November 2023. Directors’ Report 11 Directors’ Report (cont’d) Directorships of other listed companies Directorships of other listed companies held by directors in the 3 years immediately before the end of the financial year are as follows: Name Company Period of directorship Geoff Brooke Acrux Limited Since Jun 2016 Actinogen Medical Limited Since Mar 2017 Paul Wotton Vericel Corporation Since 2015 Janine Rolfe Ambertech Limited Since Sept 2023 Directors’ shareholdings The following table sets out each director’s relevant interest in shares, rights or options in shares or debentures of the Company or a related body corporate as at the date of this report: Directors Fully paid ordinary shares Share options No. No. Geoff Brooke 257,343 2,569,767 Kilian Kelly (i) 619,651 2,765,748 Darryl Maher 50,000 545,000 Paul Wotton 315,309 589,767 Janine Rolfe 116,279 578,140 David Atkins (ii) - - (i) Appointed Managing Director & CEO on 1 July 2023. (ii) Appointed 1 July 2023, resigned 13 November 2023. Remuneration of key management personnel Information about the remuneration of key management personnel (“KMP”) is set out in the remuneration report section of this directors’ report. The term ‘key management personnel’ refers to those persons having authority and responsibility for planning, directing and controlling the activities of the Group, directly or indirectly, including any director (whether executive or otherwise) of the Group. 12 Cynata Therapeutics Annual Report 2023/2024 Options granted to directors and senior management During and since the end of the financial year, an aggregate of 4,210,000 options were granted to the following key management personnel (2023: 2,636,096): 1 2 Key management personnel Number of options granted Issuing entity Number of ordinary shares under option Geoff Brooke 1 500,000 Cynata Therapeutics Ltd 500,000 Kilian Kelly 1 750,000 Cynata Therapeutics Ltd 750,000 Paul Wotton 1 220,000 Cynata Therapeutics Ltd 220,000 Darryl Maher 1 220,000 Cynata Therapeutics Ltd 220,000 Janine Rolfe 1 220,000 Cynata Therapeutics Ltd 220,000 Jolanta Airey 2 500,000 Cynata Therapeutics Ltd 500,000 Mathias Kroll 3 1,800,000 Cynata Therapeutics Ltd 1,800,000 Unlisted options issued on 13 November 2023 pursuant 3 Unlisted options issued on 17 April 2024 pursuant to an to shareholder approval obtained at the 2023 Annual Employee Option Acquisition Plan. Dr Mathias Kroll was General Meeting. appointed on 14 April 2024 as Chief Business Officer. Unlisted options issued on 16 January 2024 pursuant to an Employee Option Acquisition Plan. Company Secretary Mr Peter Webse held the position of company secretary of Cynata Therapeutics Limited at the end of the financial year. He joined Cynata in April 2012. Mr Webse is a director of Governance Corporate Pty Ltd, a company specialising in providing company secretarial, corporate governance and corporate advisory services. Mr Webse acts as Company Secretary for a number of ASX listed biotech and technology companies. Dividends No dividends have been paid or declared since the start of the financial year and the directors have not recommended the payment of a dividend in respect of the financial year. Directors’ Report 13 Directors’ Report (cont’d) Shares under option or issued on exercise of options Details of unissued shares or interests under option as at the date of this report are: Grant date Number of shares under option Class of shares Exercise price of option Expiry date of options Cynata Therapeutics Limited1 14 Sept 2020 100,000 Ordinary $1.280 13 Sept 2024 2 Cynata Therapeutics Limited 24 Nov 2020 4,500,000 Ordinary $0.970 29 Nov 2025 3 Cynata Therapeutics Limited 11 Oct 2021 1,000,000 Ordinary $0.890 11 Oct 2025 Cynata Therapeutics Limited 22 Nov 2022 300,000 Ordinary $0.510 23 Nov 2027 Cynata Therapeutics Limited 1 Jun 2023 18,174,487 Ordinary $0.300 1 Apr 2025 6 Cynata Therapeutics Limited 30 Jun 2023 2,033,333 Ordinary $0.176 30 Jun 2028 7 Cynata Therapeutics Limited 13 Nov 2023 1,910,000 Ordinary $0.185 20 Nov 2028 8 Cynata Therapeutics Limited 16 Jan 2024 975,000 Ordinary $0.195 16 Jan 2029 Cynata Therapeutics Limited 17 Apr 2024 1,800,000 Ordinary $0.290 17 Apr 2029 Issuing entity 4 5 9 1 Unlisted options issued to an employee of the Company 2023 and as a result, 266,667 options were cancelled on on 14 September 2020 pursuant to an Employee Option his resignation. Acquisition Plan. 2 4 5 (750,000), Dr Maher (220,000), Ms Rolfe (220,000) Dr Macdonald (1,500,000), Dr Washer (300,000), and Dr Wotton (220,000) to ensure alignment with Dr Wotton (300,000), Dr Maher (300,000) and Mr Webse shareholders’ interests and to maximise Company (100,000) on 30 November 2020 pursuant to an Employee value. The Company sought and obtained shareholders’ Option Acquisition Plan. Dr Macdonald retired from the approval on 13 November 2023 at the Annual General Board on 30 June 2023 and Dr Washer ceased to be a Meeting. 8 Unlisted options issued to Dr Airey (500,000), Mr Webse Unlisted options issued to Dr Airey on 11 October 2021 (125,000) and other employees of the Company (350,000) pursuant to an Employee Option Acquisition Plan. pursuant to an Employee Option Acquisition Plan. Unlisted options issued to Ms Rolfe on 23 November 2022 9 Unlisted options issued to Dr Kroll pursuant to an in consideration of her agreeing to join the Board and to Employee Option Acquisition Plan. Dr Kroll is an employee reward her expected future commitment and contribution of Cynata and was appointed on 14 April 2024 as Chief as a director. Business Officer. Free attaching listed options issued to Directors and investors on 1 June 2023 pursuant to a Placement and a Share Purchase Plan. 6 Unlisted options issued to Dr Brooke (500,000), Dr Kelly Unlisted options issued to Dr Brooke (2,000,000), director on 1 July 2023. 3 7 Unlisted options issued to Dr Kelly (2,000,000) pursuant to the terms of his appointment on 1 July 2023 as Managing Director & CEO following the retirement of Dr Ross Macdonald and to Dr Atkins (300,000) pursuant to his appointment. Dr Kelly was previously the Chief Operating Officer of Cynata. Dr Atkins resigned on 13 November 14 Cynata Therapeutics Annual Report 2023/2024 The holders of these options do not have the right, by virtue of the option, to participate in any share issue or interest issue of the Company or of any other body corporate or registered scheme. Details of shares or interests issued during or since the end of the financial year as a result of the exercise of an option are set out in the table below (2023: nil). Issuing entity Number of shares issued Class of shares Amount paid for shares Amount unpaid on shares Cynata Therapeutics Limited 3,150 Ordinary $0.300 $nil Directors’ meetings The following table sets out the number of directors’ meetings held during the financial year and the number of meetings attended by each director. During the financial year, 7 board meetings were held. Board of Directors Directors Held Attended Geoff Brooke 7 7 Kilian Kelly (appointed 1 Jul 2023) 7 7 Paul Wotton 7 7 Darryl Maher 7 7 Janine Rolfe 7 7 David Atkins (resigned 13 Nov 2023) 1 1 Indemnification of officers and auditors The Company indemnifies each of its Directors, Officers and Company Secretary. The Company indemnifies each Director or officer to the maximum extent permitted by the Corporations Act 2001 from liability to third parties, except where the liability arises out of conduct involving lack of good faith and in defending legal and administrative proceedings and applications for such proceedings. The Company must use its best endeavours to insure a Director or Officer against any liability, which does not arise out of conduct constituting a wilful breach of duty or a contravention of the Corporations Act 2001. The Company must also use its best endeavours to insure a Director of Officer against liability for costs and expenses incurred in defending proceedings whether civil or criminal. The Company has not entered into any agreement with its current auditors indemnifying them against any claims by third parties arising from their provision of audit services. Directors’ Report 15 Directors’ Report (cont’d) Insurance premiums During the year, the Company paid insurance premiums to insure directors and officers against certain liabilities arising out of their conduct while acting as an officer of the Group. Under the terms and conditions of the insurance contract, the nature of the liabilities insured against and the premium paid cannot be disclosed. Proceedings on behalf of the Company No person has applied for leave of Court to bring proceedings on behalf of the Company or intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of those proceedings. Changes in state of affairs There was no significant change in the state of affairs of the Group during the financial year. Subsequent events On 1 July 2024, the Company entered into an agreement with TekCyte Limited (TekCyte) to acquire wound dressing technology developed by TekCyte. This technology is a core component of Cynata’s Cymerus iPSC-derived MSC topical wound dressing product candidate, CYP-006TK, currently being investigated in an ongoing clinical trial in patients with DFU. On 31 July 2024, Cynata issued 916,335 fully paid ordinary shares at a deemed issue price of $0.251 per share pursuant to the Deed of Assignment of intellectual property rights between Cynata and TekCyte. On 19 July 2024, the Company issued 3,150 fully paid ordinary shares following the exercise of 3,150 unlisted options at $0.30 each. Other than the above, there has not been any matter or circumstance occurring subsequent to the end of the financial year that has significantly affected, or 16 Cynata Therapeutics Annual Report 2023/2024 may significantly affect, the operations of the Group, the results of those operations, or state of affairs of the Group in future financial years. Corporate governance Cynata Therapeutics Limited and the board support and adhere to the principles of corporate governance and are committed to achieving and demonstrating the highest standards of corporate governance. Cynata has reviewed its corporate governance practices against the Corporate Governance Principles and Recommendations (4th edition) published by the ASX Corporate Governance Council. The 2024 Corporate Governance Statement is dated 29 August 2024 and reflects the corporate governance practices in place th