lots of areas for review and maybe AGM queries (as they won't...

lots of areas for review and maybe AGM queries (as they won't accept them beforehand):


"Employee benefits expense increased to $2.3 million (2013: $2.0 million), the result of a general increase in staff salaries in line with industry averages and an increase in the long service leave provision. Directors’ fees increased to $0.6 million (2013: $0.5 million) due to an increase in the fees paid to the Executive Chairman and the addition of a new Non-Executive Director. Royalty payments due to Monash Investment Trust increased to $1.8 million (2013: $0.5 million), in-line with increased product income. A noncash expense of $0.6 million (2013: Nil) was recorded for employee share options granted during the reporting period, as required by accounting standard AASB 2". Hmmm

"The Company then aims to set the short and long term incentives to provide for top performers to be remunerated at the upper end of the market, subject to the overall performance of the Company measured against the goals set by the Board. The aim of both the short term and long term incentive plans is to drive performance to successfully implement annual business plans and to increase shareholder value. No advice from a remuneration consultant was sought during the financial year for the company’s remuneration structure". So what are the goals given that the remuneration/incentives are "at the upper end of the market"? - from what is available to me the SP has dived and no additional products in the pipeline and now the ceassation of the Hexima collaboration. So how have the bonuses been worked out???.

"Details of the remuneration of the Executives are set out in the following table:" - all SH's should take a look at this – shows the pays compared to prior year and changes. Noted that the lower bonuses % (6% rather than 12% in 2013 - which look in line with expectations given SP) is based on the higher salaries.

"The director and management services of the Executive Chairman Ross Dobinson are provided by Espasia Pty Ltd. The contract for services can be terminated by either party by giving three months’ notice in writing. For the 2013/14 financial year the contract provided for fees of $118,000 per annum in respect of director services, $200,000 per annum in respect of executive services and an additional payment of up to 60% of the executive services, dependent on the achievement of objectives, set by the Board. The Board has absolute discretion over the amount of the additional payment". On what basis is the additional payment due?. What objectives have been set? and at what rate is the payment if they have not been met?. Should an independent analyst be engaged to assist with this?.Absolute discretion - wow.

Note 12 – Capitalised Development – no change to amounts from prior year. This would only change according to Note 1 if there are deemed commercially viable products identified in the R&D stage (from what I understand)..

Note 5 – external R&D Expenses - $756k so similar to prior year.

"Other transactions with Key Management Personnel and their personally-related entities
Acrux DDS Pty Ltd, a wholly owned subsidiary of Acrux Limited, entered into two research and commercialisation collaboration agreements with Hexima Limited on 8 October 2013. Ross Dobinson is the Executive Chairman of Hexima Limited. During the reporting period Acrux DDS Pty Ltd received $5,260.37 (2013: Nil) from Hexima for the reimbursement of expenses directly related to the collaboration agreements. At the end of the reporting period there were no amounts outstanding to be paid to or received from Hexima".

And it is noted that a separate ANN has been released in relation to ceassation of activities between Acrux and Hexima. Anyone have any further information regarding this - may be irrelevant now that it has ceased but it appears from ANN that Acrux has no doubt that pursuing the product is best done in conjunction with Hexima. was a reason for the ceassation given?.

No doubt others may identify their own areas they may require further clarification on at the AGM??.