Chimeric Therapeutics Limited (ASX:CHM) released its Appendix 4E preliminary final report for the year ended 30 June 2026, with the financial statements authorised for issue on 31 August 2026. The loss after tax rose 80.3% to $18,809,512 from $10,430,424. The company said the result was largely driven by Impairment of intellectual property, and it reported nil Revenue against $3,968,525 a year earlier.

Cash reserves fell to $800,145 from $5,757,474, and the group moved from net Assets of $1,974,514 to net liabilities of $7,722,773. The report states that the accounts are still being audited and that directors expect an unmodified opinion with a material uncertainty related to Going Concern by the end of September 2026. All figures are in Australian dollars.

Company Overview

Chimeric is a clinical-stage cell therapy company based in Carlton, Victoria, with a wholly owned United States subsidiary. Its reportable segment is the research, development and commercialisation of health technologies. The company holds licences to CAR T-cell and natural killer cell technologies from research institutions: the chlorotoxin (CLTX) programme from City of Hope, the CDH-17 programme from the University of Pennsylvania, and CORE-NK from Case Western Reserve University.

Details of the Appendix 4E Results

On the income statement, revenue from contracts with customers was nil (FY2025: $3,968,525), and other income was nil compared with $8,624,060 of Research and Development tax incentive income in FY2025. The company did not recognise an accrual for its FY2026 tax incentive claim, estimated at $4.5 million, because the amount cannot be reliably measured at this time. Other gains were $107,403 against a loss of $22,990.

Expenses were lower in several lines. Research and development expenses fell to $3,415,506 from $14,347,814, general and administrative expenses fell to $4,602,329 from $6,445,356, and share-based payments fell to $337,537 from $1,086,254. Impairment of intellectual property was $10,272,808, compared with nil, and the operating loss widened to $18,520,777 from $10,156,592. Finance income fell to $39,232 from $48,009, finance expenses rose to $305,827 from $211,032, and income tax expense fell to $22,140 from $110,809. Basic and diluted loss per share was 60.97 cents against 77.15 cents, with prior-year share counts restated for the 100-for-1 share consolidation announced on 29 April 2026.

The impairment comprised $9,753,092 on the CLTX asset, following the return of the programme to City of Hope announced on 27 February 2026, and $519,716 on CDH-17. On 19 August 2026 the group announced it had ceased enrolment in the CDH-17 Phase 1 trial following dose-limiting toxicities and treated this as an adjusting event, fully impairing the asset at 30 June 2026 and reducing related contingent consideration liabilities to nil. The CORE-NK licence remains on the Balance Sheet with a carrying value of $254,499, and total intangible assets fell to that amount from $11,044,759.

Net cash used in Operating Activities was $10,783,436 (FY2025: $7,275,729), and this included $4,497,887 of tax incentive receipts against $4,172,342. Net cash from financing was $6,081,445 against $10,046,000. Proceeds from share issues and other Equity securities were $8,791,958 (FY2025: $8,204,420), including a private Placement of 6,900,993 shares at $0.30 on 4 May 2026 that raised $2,070,298, and the company also issued 750 convertible notes on 18 April 2026 with 350 warrants, raising $750,000. Repayments of borrowings were $2,500,000 and repayments of financial liabilities were $1,665,000. Shares on issue were 54,728,067 after the consolidation. Net tangible liabilities per security were 14.58 cents, against 45.01 cents.

On the balance sheet, trade and other receivables fell to $29,122 from $4,551,105, because the prior-year figure included an accrued tax incentive receivable of $4,497,887 that has not been repeated. Current other financial liabilities were nil against $3,562,406, and non-current other financial liabilities fell to $109,313 from $4,982,421, with the contingent consideration linked to CDH-17 reduced after the trial decision. Share Capital rose to $80,413,400 from $70,162,110 and accumulated losses reached $94,569,376. Five conversions of convertible notes between May and June 2026 added shares worth between $50,000 and $55,000 each, and shares were also issued for professional services at a value of $49,500.

Trade and other payables were $7,983,758 (FY2025: $10,870,872) and total liabilities were $9,001,517 (FY2025: $19,596,657). Subsequent events include the resignation of non-executive director Eric Sullivan on 6 July 2026, the issue of 650 convertible notes on 17 July 2026 for $650,000 under the second tranche, and $1.62 million received on 29 July 2026 from Endpoints Capital under a Facility secured against the FY2026 tax incentive. Following the CDH-17 decision, the group expects annual savings of approximately $4 million across headcount, Manufacturing and trial-related costs, after initial termination costs.

Industry Context

CAR T-cell and related cell therapies are developed through staged clinical trials, and each licensed programme carries its own scientific and safety risk. The report shows how those outcomes flow into the accounts: the return of one programme and the halting of another led to the write-off of about $10.3 million of intangible assets in a single year. The company's research spending also fell sharply as programmes were wound back.

Development-stage groups in Australia commonly rely on the research and development tax incentive, and Chimeric's cash flows show its importance, both through receipts of $4,497,887 and through the financing facility secured against the FY2026 claim.

Risks and Uncertainties

The directors expect the audit to carry a material uncertainty related to going concern, which reflects cash of $800,145 against current liabilities of $8,888,650, including convertible notes and warrants of $679,845. The group has no revenue and relies on share issues, convertible notes and financing secured against the tax incentive.

Other uncertainties include the timing and amount of the unrecognised FY2026 tax incentive claim, dilution from further issues and conversions, and the remaining pipeline now that CLTX has been returned and CDH-17 enrolment has stopped. The figures are preliminary and may change until the audit is complete.

What to Watch Ahead

Items to follow include release of the audited financial statements, the wording of the auditor's opinion, receipt of the FY2026 tax incentive, and any update on the CORE-NK programme and the company's cost reductions.