Reglstered number.. 10S29899 Charity number: 1173589 FYfEN RESEARCH FOUNDATION FINANCIAL STATEMENTS YEAR ENDED 31 PJIARCH 2021 LUBBOCK FINE LLP Chartered Accountants Patemoster House 6S St Paul'5 Churchyard London EC4M 8A8 PTEN RESEARCH FOUNDATION (A company lim&t¢d by guaranteg) CONTENTS Page Reference and admintstratlve detalls of the Charlty, Its Trnstees and advisers Trustees, report 2-10 Independent auditors. report on the financial statements Statement of financial activities 15 Balance sheet 16 statement of cash flows 17 Notes to the flnanclal statements 18-34 PTEN RESEARCH FOUNDATION (A company limited by guarant88) REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARftY, rts TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2021 Trustees l Directors Rt¢ardo Zacconi Renata Crome Sussanah Clark Dr Philip Bedford Siriana Bakjini Cornpany Teglstered number 10529899 Charity register8d number 1173589 Registered office 3rd Fk)or, Patemosler House 65 St. Paul's Churchyard London EC4M &48 Independent audltors Lubbock Fine LLP Chartered Accountants & Stattjkny Auditors Patemoster House 65 Sl Paul's Churchyard London EC4M 8AB Bankers Barclays Wealth Mayfair London W1K 1AF JP Morgan Bank LuxemtMJJrg S. 1 Boulevard du Roi Atert11 Brussels Belgium B-1210 Brussels Page 1 PTEN RESEARCH FOUNDATION IA Company Limited by Guarantee) EN RESEARCH TRUSTEES, REPORT FOR THE PERIOD ENDED 31 MARCH 2021 The Trustees. who are also Dire¢tors for the purposes of Company Law, present their annual report together with the audited finanual statements ofthe charity for the period 151 April 2020 to 3151 March 2021. The Trustees confirm that the Annual Report and financial statements of the company comply with the current stslulory requirements, the requiremenls ot the company's governing document and the provisions of the Statement of Recommended Practtce ISORPI, appli¢abk to Charities P￿paring their accounts in accordance with th8 Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 1021 (effective 1 January 20191 Trustees The trustees who seNed during the pericKI were.. Riccardo Zacconi (Director and Trustee} Susannah Clark (Director and Trusleel Dr Phillip Bedford Renala Crome Siriana Baldini It is noted that after the end of the perrod. on 11th May 2021, Dr Phillip Bedford, Renata Crome and Siriana Baldini were all appointed as directors of the charilable company. Riccardo Zacconi has signed the report on behalf of Ihe Board of Trustees and the Directors. Members The company currently has a single member, Blue Compa&s PTC Limtted who has been in place sin* 16th De￿rnber 2016. Structure ovemance and mana Name 04 EhÈ !Dvernioo d9cbirni e*1 ho￿. :he ch?riiS1 i- constilults The PTEN Research Foundation I'the Foundation. or 'PTEN Research.) was established as a charity under English and Welsh law in 2017 {￿lstered number 11735891. The charity is constituted under a Mernorandum of Association and Articles of Association. dated 16th D￿mber 2016. The Foundation's mission is lo fund and facilitate research that will lead to new and better treatments for PTEN harnartoma tumour syndrome IPHTS). [￿let￿0d4 LJSeo "In recruit appoi￿. iieiii [flJSiees Including an5, consliluiionai proiiisiop.s Il 2pplicabie As per its Articles of Association. PTEN Research shall at all times be governed by not Ipss than three trustees and until the Charity determines otherwise by ordinary resolulion, shall not be subject to any maximum. The appointrnent, recruitment and terms of Offi￿ for new twstees is determined by the govemance needs of the Foundation to meet its mission. New trustees are recruited through relevant scientific, research or business ne￿OrkS. Active consideration is given to the diversity of the Board. As per the charity's governing document, any person who is willing to act as a truslee and is pennitted by law lo do $0, may be appointed by a majority vole of the existing trustees. To dale Iruslees have been appointed to the Foundation on the basis of their skills and knowledge, and the contribution they can make to the Foundation. Page 2 PTEN RESEARCH FOUNDATION {A Company Limited by Guarantee) EN RESEARCH TRUSTEES, REPORT (continued FOR THE PERIOD ENDED 31 h1ARCH 2021 Thè charity s organisatlopial s:.ruclure ttnd havJ ￿e￿IS1on$ ara Ir8de The organisalional structure of the Foundation ts as follows-. il Board of Trustees. the goveming entity- they ratify policy and make operational. funding and strategic decisions by majority vole. 21 Stsff.. resp)nsible for ¢arying out the day-to4ay activitres of the charty in accordance with tts charitsble objectwes. They are supervised by the trustees and supported in their decision making through a Delegated sche￿ of Aulhority. 31 Sciefitif￿ Adviso Board SAB = resp)nsible for providing the Foundation with non-binding scientific advice on its programmes and strategy. At PTEN Research. decisions are made by the tru*ees or by delegatbon of authority lo staff who manage the daily running of the Foundation. Decisions musl either be made by 8 majority decision of the twslees in person or in writing. The Foundation's trustees and memberls) can exercise the powers of the charity as described in the published articles of association. At the end of March 2021. the Foundation's B08rd of Trustees included five individuals with knowledge in the fiekls of drug development. finance. communications. law and business development The trustees meet at ￿ast four limes a year. The Foundation is run by a small team of staff. They have the authority to oversee the day-to-day running of the Foundation by ensuring that PTEN Research adheres to its charitable objectives and mission. Al the end of March 2021. the Scientific Advisory Board (SA8) was (x)mprised of nine experts whose specialisms include.. medicine. scientiffc research. drug development. basic research, clinical research and geneti¢s. The SAB meet on average On￿ a year in person to discuss the scientific progress of the Foundation. In addition, they are ¢onsulled during the year to advise on grants or to gNe input into scientific projects. Policie5 ants procedures ror indur41Dfi Ono irainin LI Usle￿< On appointment new trustees sign a Irustee dedaration statement comrnitting their time and expertise to the Foundation. An initial meeting is held with the Foundation staff and trustees, before formally introducing them to the various aspects of the Foundation such as the grant making process, policies and procedures, and other relevant information. New trustees are grven aC￿S lo the Foundation's goveming documents, HR policies. financial infofmalion. annual reports and accounts. meeting materials and essential trustee guidance provided by the Charity Commission. Arranoelmenis ior seltinn p25." 2n6 reniufjthr2iion of kèg na*otiemernt gtsrsDitin&l 2n0 anii criiei'i Trustees are not remunerdted for their work. Tnjstee expenses are SUPF(Srted in line with Foundation policy. Pay and remuneration for key managernenl staff set by revEwing market research into pay and ￿muneratIon and by agreement of the trustee body. Pay and remuneration are reviewed annually. Srflenient CGnfiriniTra rri2jor risks 113Vr been reviewed Gn6 Siislems 9r ￿4￿￿c&s. established tD m2iage thes￿ r15*s beeri staff maintain risk registers to manage and mnilor risks associated with the functioning of the Foundation and related to the projects it funds. Major risks are raised to the trustees through both written and verbal reports al least once a quartef. If new significant risk5 0(zur, these are raised imrnedialely to the trustees outside of the routine cycle of meetings. The Foundation hok15 an intemal programme-fccused meeting once a fortnight and fortnighlty team staff meeting to review the progress of fvnded projects and to identify risks or mitigations. Page 3 PTEN RESEARCH FOUNDATION IA Company Limited by Guarantee) EN RESEARCH TRUSTEES. REPORT Icontinuedl FOR THE PERIOD ENDED 31 MARCH 2021 Ob"ectives and Activities Purposes of Lhe charilv ancl 5tialegy As per its governing documents. the Foundation's purposes are specifically restricted to.. Vhe pok¢ts"on and prtjfnobon of ttje he81fh of individuals diagnosed with PTEN hamartoma tumour syndrome (PHTS) orotherrelatedcondthons (by nwhani5m. Glinicalpffesent8t￿n or0therfact0￿) inparticulahybyrese8r¢h into Ihe nature, causes, diagno&s, prev6ntson. treat￿￿tand cure of PHTS orotherrelatecl conditions, ffnduding the development of findAngs of tss8arth inlopr8¢ti¢81 applIGat￿ forlhe p￿VentiOn, t￿￿¢Ment aFTrd ct1￿ of PHrs or other ftElated condilions, énd in furthèrnnce of Ihat primary objec¢ to in¢￿aSe awawess Of PHTS or other relaled conditions andpmvth and support 8S 8ppropnate to affected indwidtsals èft7d famFlies,' and all pU￿oseS thatare of public benefil and8￿ exdusively Gharitsble under Ihe law of England and Wales.. The Foundation carries out these obJ￿ts by implementing activrties that support delivery of its strategy as depicted in Figure l. The ¢entr31 focus of the Foundation's work is the development of therapy options for the non-malignant symptoms of PHTS that are clinically tractable and have a clear unmel need (Goal 11. A longer-lerm goal for the Foundation is to improve the management. and potential for prevention, of cancer in PHTS (Goal 2}. Goal J..Thryy optlonsfornon4n3118nant Gtsal 2.. Marwertand FKe4EThtton of CaTh￿r Under5t3ndlng of PHTS Partnership5 Sustainab Foundatmin Figure I: The Fgundation's llr8te8￿ GoaL% arnl Critical enabling actNitie5 Specificalty, working towards car￿r prevention in PHTS is closety tied to the delivery of data generated via the execution of Goal 1. Through supporting basic and translational ￿search. and interventional clinical trials focussed on the non-malignanl manifestations of PHTS. the Foundation aims lo identify biomarkers of disease that correlate with dinical outcomes. and which could ullimaiely be evaluated as surrogate markers of cancer initiation or progression in PHTS patients. Thus. the future development of the Foundation's cancer strategy is intimatety linked to the delivery of Goal l. Each year the str*egy, future plan and budgets are reviewed by the trustees and agreed. Page 4 PTEN RESEARCH FOUNDATION (A Compony Limited by Guarantee RESEARCH TRUSTEES. REPORT {continued) FOR THE PERIOD ENDED 31 MARCH 2021 2 Acb'vilies underiaken In the year The lolal income received for the pericKI ending 31st March 2021 was £722,909. This income was a result of the following 8Ctivilies'. Restricted donations receNed.. £418. a result of volunteer fundraising efforts, reslricled donations were gwen lo the Foundation for the purposes of funding medical research projects. Unrestrtcted donations received.. £nil Investment income received." £722.491. The total expenditure for the year ending 31Gt March 2021 was £2,530,146. This expenditure supported the Foundation's core activities to sel in pla￿ the strategy. PrO￿$S and govemance bodies lo fvnd clinical trials and me¢Jical research projects. The Foundation's core activities were focused on commissioning work and granting activities to set up awards for scientific research in line with the Foundation's strategy. The Foundation also consulted with many subject matter experts oll a range of topic5 and progressed business development opportunib'es. The Foundation maintains a dialogue with PHTS patient advocacy groups to support an understanding of the work that the FoLtndation ts underlaking. Work continued with industy and an academic instilution, on the proces5 of discovery into novel drug development for PHTS. Griteri? u521 to asse55 the succr*SS O.: i*J ￿ fcP)fLltio ptsno The trustees meet once a quarter and the SAB onts a year to assess the progress of the Foundation against Ils stffjtegi¢ objectives. During the year, trustees agreed goals and obj-ectives for the following ￿e1ve months. 4 Signilican.: acnievemèltk 3nc riow, the>É JplLi Ibutr -:0 Tle ￿h￿rI[Y o aino Overvlew Despite the impact of the COMD-19 pandemic. the Foundatlon continued to make significant progress to progress its mission during the period 1st April 2020 to 31￿ March 2021. The Foundation's strategy Vds reviewed, updated and endorsed by the Foundation's Scientific Advisory Board. Whilst this did not fijndamentally change the FoUndat￿n'S mtssion and vision, it has supported prioritls8tion and areas of focus for the Foundation. (rhe updated strategy is summarised in Figure 1.1 There were 18 active projects at the yearond. ofwhich 14 were vthh acadern￿ collaborators and the remainder with commercial partners. A furM)er 3 projects were in adive development. Significant p￿resS was made on a number of key scientific projects: The randomised. placebo controlled, clinical trial (NCT02991807) assessing the use of the MTOR inhibitor everolimus vs p￿￿b¢ in PHTS subjects with neurobehavioural problems completed recruitment This was a significant milestone for PHTS research as it was the first ever clinical trial to assess a drug intervention in this Specif￿ patient population. Publication of results is exwcted later in 2021. PTEN Research was the majority funder of this sludy. Reflecting the importance of developing approaches to facilitate future clinical trials in PHTS subjects, grants were made to the University of Melboume and John Carroll University to support the development of PHTS-specific neurobehavioural evaluation tools. It is hoped that these tools may become endpoints for future clinical trials. An application for an Intemational Classification of Diseases IICD-10-CMI code for PHTS was also submilled to the US Center for Disease Control. Page 5 PTEN RESEARCH FOUNDATION (A Company Llmited by Guaranle¢) RESEARCH TRUSTEES, REPORT (continued) FOR THE PERIOD ENDED 31 MARCH 2021 The Foundation's preclinical work is fO￿SSed on the devek)pmenl of relevant preclinical models in which to perform drug repurp)sing sbjdies to provide supportive d3ta and rationale for future PHTS patient clinical trials. Initially. the studies are fDcused on a broad range of existing molecules that have been developed to specifically inhibit the key 5vJnalling nodes of the P13KJAKTlmTOR pathway. Inhibitory activity will be assessed both in vitro and in vivo in models that are deper￿ent on loss of PTEN function. During the year signif cant progress was made towards rnodel development targeting malignancy (endometrial hY￿rPlaSja). vascular anomalies and neurology with multiple academic Ilaborators. Further, the Foundation signed agreements with the Contract Research Organisations ICROS) Evolec and Charfes River Laboratories to broaden the range of available PHTS-specific models and provide ¢apa¢ity to evaluate large numbers of drug repurposing candtdates in contrast to the more bespoke studies with academic collaborators. A collaborab.on with the vascular biok)gy group at Josep Carreras Leukaemia Research Institute in Barcelona has estsblished a r￿￿e[ of PHTS vascular malformations and is assessing two potential clinical candidates. Governance: In the period ending 31* March 2021, the Foundation ￿nb"nUe￿ to strengthen its govemance. The relationship th the Scientiffc Advisory Board was reinfor￿1 by adoption ofa forn￿[ charter signed by all members. Processes for regular reporting and risk escalation to ensure transparent and informed decision-making continue to be used to guide the Foundation's grants and wor Strategy: As previously noted, the Foundation's strategy was reviewed and updated as depicted in Figure 1. A longer- term plan of activities until approximatety 2029 to delwer the strategy is actively maintained and costed. Staff: In March 2021, recognising the growth and maturation of the Foundalion, the trustees apwinled the Foundation'5 first Chief Executive. The drivers for this include the increased volume of Foundation activities and associated budgeL the need lo ensure appropriate ongoing scientific prioritisation and enhanced internal de￿s1On-rnaking processe5, including portfolio management. The Foundation continues to maintain and develop policies and proce55es for HR, operations. finanaal awards and fundraising, as required. Clinical Development Working Groups ICDWGS): These are multidisciplinary group5 of inlernab.onal PHTS thought leaders supporting the Foundation with outputs envisaged lo play a key role in shaping and optimi8ing the design of ￿tUre prospective PHTS clinittal studies and ways to improve patient care more broadty- The continued development of the Clini￿[ Development Working Groups ICDWGs} over the L2st year has provided signifTrc3nl value lo the Foundation. Patlent engagement: The Foundation has maintained regular inieractions th patient adV￿¢Y groups. {Historically. staff have attended PHTS patient days however such acuvities were naturally p￿Ced on hold as a result of the COVID- 19 pandemic.) The Foundation cannot offer specific advi￿ to individual patients. Analysis of publicly available sctentlflc and medlcal lfterature: Desk research continues to be held on publicatH)ns relatsng lo the natural history and the mechanism of disease of PHTS. Trustees and the staff team regulaty revw these developments to ensu￿ the Foundation's activities remain relevant and robust. Fundraising: The Foundation re￿iVed £418 in donations {all restricted). Page 6 PTEN RESEARCH FOUNDATION IA Company Limited by Guarantee) RÉSEARCH TRUSTEES, REPORT {¢ontinuedl FOR THE PERIOD ENDED 31 MARCH 2021 5. Grant making policy The Foundation provides grants in line with its strategic goals and miSS￿n. The Foundation fLtnds reSea￿h projects that can translate into tetter treatments for PHTS patients. This includes clinical research studies, interventional dinical triaFs. preclinicavtranslational research projects and, where appropriate. basic research projeots. Funding is primarily provided through two mechanisms: Targeted calls Innovation Awards 11 is noted that discussions arising from the Clinical DeveloprrEnt Working Groups have also led to several grant applications. Gran15 are awarded to Principal Investigators who have qualified with an MD or PhD and who have an established research prograrnme in a recogni%ed academ￿ or clinical research institution. Eligibility is not restricted to any Spe￿fiC geography. Funding is intended to suppart all essenttal costs relating trj the project. including staff, consum8bles, equipment, travel and publication costs. The Foundation has a wlicy to only pay costs directly attributable lo the activities of the grant. Applications undergo a ￿lenti￿¢, strategic. and programmatic assessment by the Foundation's internal research team before generally being submitted for extemal peer review by at least two independent subject- matter experts. The peer ￿vieWed applTrcatsons are then subject to review by the Scienltfic Athiisory Board ISAB} and trustees. In addition to grants. the Foundalion ¢ommi5sions work with academ￿ and industry partners in the pursuit of its mission. Tris contracted work ur*dergoes a saents"ft, Strateg￿ and programmatic assessment by the Foundat'on's intemal research team tefore wot1( commences. ilsr of volunteers At present the Foundation does not utilise volunteer staff and has chosen not to develop a fvndraising netsvort< of volunteers. Instead, the Foundation's approach is lo support the effort of 'ift aid of ftjndraisers, who run events independently and pay in all funds. Ifthis approach were to change in the futLtre, all policies, procedures and relevant governing documents would be updated to refiect the amendment. As previously noied, tnJstees are engaged on a voluntary l)asis. Staiement conf51TYino .L 161 Ihf 3b.'liltieo dnde", ial.-er5 Weie iJ ruttLner ihe cll&fii'y o purpo NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 Accountlng pollcles (contlnued 1.5 Expendlture (contlnued) Charitable aclivibes are costs incurred on the charivs operations, including support costs and Costs relating to the govemance of the charity apwrtioned to charitable activities. Grdnts payable are charged in the year when the offer is made except in those cases where the ofter is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a ommitmenL but not accrued as expendiknre. Support costs are those costs In￿rred direcuy in support of expenditure on the objects of the charity and indude goveman¢e costs. All expenditure is inclusive of irrecoverable VAT. 1.6 Tangible fixed assets and depreclation Tangible fixed assets are carried at cost. net of depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value. over their expected use￿1 lives on the f￿lo￿ng bases: Fixtu￿$ and fittings Computer equipment 330k straight line 33% straight line 1.7 Investments Current and fixed asset investrnents are a form of financial instwmenl and a￿ initially recognised at their transaction cost and subsequeAdy measured at fair value at the Balance Sheet dale, unless fair value cannot be measured reliably in which case il is measured at cost less impaimenl. Investment gains and losses. whether realised or unrealised, are combined and shown in the heading 'Gainsl{lossesl on investmenis. in the Statement of Financkgj AclivrtEs incorporating Income and Expenditure Account. Fixed asset investments are those investments held for the generation of investment in￿me, investment potential or both and have a maiurity of at least one year from the balance sheet date. Current asset investments are those investsnents held for investment purposes rather than to meet short term cash commitments as they fall due. Current assel investments are expe¢ted lo be realised within 12 months of the reporting date and indude cash on deposit and cash equivalents wlh a maturity of less than one year. 1.8 Debtors Trade and other debtors are recognised at the settlement amount after any trade dI$￿unt offered. Prepayments are valued at the amount prepaid nel of any trade discounts due. 1.9 Cash at bank and in hand Cash at bank and in hand includes cash and short lerm hKJhty IiquKI investments held to tneet short term cash commitments as they fall due rather Ihan for investment potential. Cash and short lerrn highly liqu￿ investments have a short maturty of three months or less from the date of acquisition or opening of the deF¥)Sit or similar account Page 19 PTEN RESEARCH FOUNDATION (A company lirnited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 Accounting policies (continued) 1.10 Liabilities and provlsions Liabilitie5 are recognised ￿en there is an obligation at the Balance Sheet date as a result of a past event. it is probable that a transfer of econom￿ benefft wll be required in settlement, and the amount of the settlement can be estimated rdiabty. Li4biliti"es are reccgnised at the amount that the charity anticipates il will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts quired to sethe the obligation. Trade and other creditors are recognised at the settrement amount after any trade dTscounts r￿1ved. Accruals are value based on the estimated amount lo ￿ paid. 1.11 Financial instwments The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic finan¢ial instruments are In￿'allY recognised at trdnsaclKJn value and subsequently measured at their settlement value. 1.12 Foreign currencies Monetary assets and liabil￿eS denominated in fOre￿n currencies are tran￿ated inlo sterling at rates of exchange ruling at the balance sheel date. Transactions in foreign currencies are tran4aled into sterling at the rate ruling on the date of the transaction. Exchange gains and losses are recognised in the Statemenl of Financial Activities incorporating Income and Expendilure Account 1.13 Pensions The Charity operates a defin&Y contribution penS￿n scheme and the pension charge represents the amounts payable by the Charty to the fund in respect of the year. 1.14 Fund accounling General funds are unrestricted fvnds which are available for use at the dtscrebon of the Trustees In furtheran￿ of the general objectives of the Charity and which have not been designated for other purwses. Restricted funds are funds which are to be used in accordance wtth specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specffic fund. The airn and use of each restricted fund is set OLrt in the nate5 to the financial siatements. Page 20 PTEN RESEARCH FOUNDATION {A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 Income from donation5 and 18gacies Unrestrlcted Restricted funds funds 2021 2021 Total funds 2021 Donations 418 418 Unrestricted funds 2020 Total funds 2020 Donations 2.874 2,874 Investment income Unrestricted funds 2021 Total funds 2021 Investment income 722,491 722,491 Unrestricted funds 2020 Total funds 2020 Investment income 698,917 698,917 Page 21 PTEN RESEARCH FOUNDATION IA company Ilmited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 Analysls of expenditure on charitable activities Summary by fund type Unrestricted Restrictgd funds funds 2021 2021 Total funds 2021 Charitable activities relating lo clinical trials and medical search 2,460,960 3,779 2.464.739 Unrestrscted funds 2020 Total funds 2020 Charitable activib'es relating to clinical trials and medic21 research 974.078 974.078 Analysis of expenditure by activities Activities undertaken directly 2021 Support costs 2021 Total funds 2021 Charitable activities relating to dinical Irials and medical research 2,241,563 223,176 2.464,739 Activities undertaken directly 2020 Support eosts 2020 Total funds 2020 Charitable aclNities relating to dinical trials and medul research 1.358.846 {384,7691 974,077 These are costs incurred by the Foundation for its ¢haritable purposes and comprise direct costs, which are attributable lo a sir)gle charitable activity, and support Costs, which are not directly attributable to a single charitable activity and are apFwtioned behveen charitable activities on a basis consislenl with the use of resources. Page 22 PTEN RESEARCH FOUNDATION {A company limited by guarantee) NOTES TO THE FINANCtAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 Anaty81$ of eXpendI￿re by activities l¢ontiDued) Analy$ls of direct costs Totsl funds 2021 Actlvities 2021 Staff costs Research contra¢ts, grants and other direct costs 487.986 1,753.577 487,986 1,753.577 2.241,563 2,241,563 Staff costs are made up of wages totalling £418.274 {2020 - £329,611), employers national insurance tolalling £45,513 (2020 - £36,699) and pension costs totalling £24.19912020 - £23,722). Total funds 2020 Actlvlties 2020 Staff costs Research contracts, grants and other direct costs 390,032 968.814 390,032 968,814 1,358.846 1,358,846 These direct costs are attributsble to a single charitable activity. Anatysis of support costs Total funds 2021 Activities 2021 Staff Costs Depreciation Foreign exchange gain General costs 107,119 889 107.119 889 {30,5211 8,884 {30,5211 8,884 L jj Legal & professional fees Bank Charges Premises costs 50,465 22,959 51.867 1.322 8.400 1,792 50,465 22,959 51,867 1,322 8.400 1,792 Travel costs Audit fees IgovernanTr) L05s on disposal of fixed assets 223.176 223,176 Page 23 PTEN RESEARCH FOUNDATION {A company limited by guarantee) NOTES TO THE FINANCIAL sTATEME￿r5 FOR THE YEAR ENDED 31 MARCH 2021 Analysis of expenditure by a¢tivities {¢ontinuodl Anatysis of support costs {conlinu¢d) Staff costs are made up of wages lotalling £91.816 12020 - £72,354). employers national Insurance totalling £9.991 {2020- £8.056} and Kension costs totslling £5,312 (2020- £5.207}. Total fund$ 2020 ActSvktles 2020 Stsff costs Depreciation Foreign exchan9e gain General costs 85.617 1.328 (657.788} 7,045 63,011 28,254 68,035 85.617 1,328 1657.788} 7,045 63,011 28,254 68,035 Legal & professional fee5 Bank charges Premises costs Travel costs Audit fees Igovemancel 13 11,329 8,400 11,329 8,400 1384,769) 1384,769) These support costs are not directty attributable to 8 single Charitable activity and are apportioned between charitable activities on a basis consistent with the use of resources. Page 24 PTEN RESEARCH FOUNDATION (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 Grants to Inst6tutlon$ 2021 2020 Boston Children's Hosthl Cambridge University R￿￿bOud Universty Medical Center Ohio Stale University Beth Israel Deaconess Medical Centre Inc Universrty COl￿e London Bellvitge Biomedical Researd) Institute TC Istanbul Bilim Universty Bio¢ru¢es Bi*(aia Health Research Institute Cleveland Clinic Evotec Intemational Imagen TherapeLrtics Ltd John Carroll University University of MelL*)ume 193.806 21,555 118,573 102,108 124.638 37.891 157,592 248,999 51,682 51.113 234,670 73.718 12,311) 26,510 420.813 458.624 18.140 23.308 10,352 1.648,871 722,910 During the year grants were made to institutions in respect of research projects and clinical trials. These Grants to institutions fom part of the Foundation's direct costs, which are costs attributable lo single charitable activty. Audltors. remuneration 2021 2020 Fees payable to the Charivs audrtor for ihe audit of the Charity's annual a¢¢ounts 8,40D 8,400 Fees payable to the Charity's audttor in respect ofr. Other services 2.226 4,260 Audito¢s remuneration forms part of the Foundation's support costs, which are not directly attributable to a single charitable actNity and are apEH)rtioned between charitable activitres on a basis consistent with the use of resource5. Page 25 PTEN RESEARCH FOUNDATION (A company limited by guarantee} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 Staff costs 2021 2020 Wages and salaries S￿ra1 security costs Other pension costs 510.090 55,504 29.511 401.965 44,755 28,929 595,105 475,649 staff costs include direct Costs. which are attributable to a single charitable aclwity, and supwrt ¢osls, which are not directly attributable to a single charitable activity and are apporboned ￿tsveen charitable activities on a basts consistent wifh the use of resour￿. The average number of persons empbyed by the Charity during the year was as follows.. 2021 2020 Research and support staff The number of employees whose employee beneffts (excluding emph)yer pensH)n costs) exceeded £60.000 was.. 2021 No. 2020 In the band £SD,001 - £70,000 In the band £70,001 - £80.000 In the band £90,001 - £100,000 In the band £150,001 - £160.000 Transa¢tion$ with Trustees During the year donations tolalling £80 {2020 - £nill were made lo a school on behalf of Siriana Baldini, a trustee of the chariiy. Transa¢tion$ with Key Management Personnel At 31 March 2021, £812020- £2021 was due to key management personnel. During the year, the Charitys key management personnel re￿iVed total remuneration of £499, 170 (2020 - £405,766). Page 26 PTEN RESEARCH FOUNDATION (A company limited by guarantea) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 Tangible fixed assets Fixtures and ftttings Cornputer equipment Total Cost or valuation At 1 April 2020 Additions Disposals 2.500 3,106 1,199 5.606 1.199 12.5001 12.5001 At 31 March 2021 4.305 4,305 Depreciation At 1 April 2020 Charge for the year On disposals 456 252 {708) 2.045 637 2,501 889 17081 At 31 March 2021 2,682 2,682 Net book value Al 31 March 2021 1.623 1,623 At 31 March 2020 2,044 1,OS1 3,105 Page 27 PTEN RESEARCH FOUNDATION IA Company limited by guarants9) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 10. Fixed asset investments Listed investments Cost or valuatlon At 1 April 2020 Additions Disposals RevalualM)ns Transfers behveen classes Foreign exchange movement 17,142,560 11,410,311 13.629,674} 482,495 17.365,5991 1895,0101 At 31 March 2021 17,145,083 Net book value At 31 March 2021 17.145.083 At 31 March 2020 17.142,560 11. Debtors 2021 2020 Duo within one year Other debtors Prepayments and accrued income 11.55D 4,445 4,445 11,614 12. Current asset investments 2021 2020 Listed investrnents 7,101,446 18,582,510 Page 28 PTEN RESEARCH FOUNDATION {A comparFy limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 13. Creditors: Amounts falling due withln one year 2021 2020 Trade creditors Other creditors Accruals and deferred income 16.594 12,022 4.208 97.591 586,279 602.873 113.821 Financlal instruments 2021 2020 Financial assets Financial assets measured at fair value through income and expenditure Financial assets measured al amortised cost 24,246,529 35,725,070 14 11,615 24,246.543 35,736,685 2021 2020 Financial liabllitles Financial instruments measured at amortised cost 602,873 109,613 Financial assets measured at fair value through inwme and expenditure comprise of fixed and current asset investments. Financial assets measured at amortised cost comprise of accrued income. Financial liabilities measured at amortised cost comprise of trade ¢reditors and accrual5. Page 29 PTEN RESEARCH FOUNDATION IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMEKrs FOR THE YEAR ENDED 31 MARCH 2021 15. Statement of funds Statement of funds - current year Balance at 31 March 2021 Balan¢e at 1 Aprfl 2020 Gainsl (Losses) In¢ome Expenditure Unrestricted funds General Funds 37.422.256 722,491 12,526,367) 11,406.072) 34,212.308 Restricted funds Medical Research 3.361 418 (3,779) Total of funds 37.425,617 722,909 (2,530.146) (1,408.0721 34,212,308 Medical Research - To support medical research tsken ￿3¢e into the PTEN gene and finding a F)olential treatment of PHTS. Page 30 PTEN RESEARCH FOUNDATION IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 15. Statement of funds (continued) Staternent of funds - prior year Balance at 31 March 2020 Balance at 1 April 2019 Galn (Losses) Income Expenditure Unrestricted funds Get7eral Funds 37.689,235 701,791 11.C60,102) 91.332 37,422,256 Restricted funds Medical Research 3.361 3.361 Tt)tsl of funds 37,692.5 11.¢AO.1021 91,332 37,425,617 16. Anatysis of not assets between funds Analysis of net assets between fvnds - current year Unrestrlcted funds 2021 Total funds 2021 Tangible fixed assets Fixed asset investrnents Current assets Creditors due within one year 1.623 1,623 17.145.083 17,145.083 17.668,475 17,668.475 (602,8731 1602,8731 Total 34,212,308 34,212,308 Page 31 PTEN RESEARCH FOUNDATION IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 16. Analysis of net assets between funds {continuedl Analysis of net assets between funds- prior year Unrestrfcted Restri¢ted funds funds 2020 2020 Total funds 2020 Tangible fixed assets Fixed asset investments Currenl assets Creditors due within one year 3,105 17,142.560 20,390,412 1113,821) 3.105 17,142.560 3,361 20.393.773 (113.8211 Total 37,422.256 3,361 37,426.617 17. Reconclllatk>n of net movement In funds to net ¢ash Ilow from operating activitles 2021 2020 Net exr*nditure for the year (as per Statement of Financial Activities) 11,494,405) 1697,451) Adjustments for. Deprecialion ¢harge$ Loss on disposal DivKlends and interests from investments Decrease in debtors Increase in creditors (Gain) I loss on investments Foreign exchange non cash movements on investments 181 1,792 1722.4911 7.169 489.052 1312,8321 1.718,904 1,328 {698,917) 2,860,779 101,511 339.140 11,031.5831 Net cash provided byllused in} operntlng activlties 1312,630) 874,807 18. Analysis of cash and cash equNalents 2021 2020 Cash at bank 10,562.584 1,799,649 Total cash and cash equivalents 10.562,584 1,799,649 Page 32 PTEN RESEARCH FOUNDATION (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 19. Analysis of changes in net debt Other non- cash At 31 March changes 2021 At 1 April 2020 Cash flows Cash at bank and in hand Liquid investrnents 1,799,649 8,956,470 18,582,510 110,922,629) 1193,5351 10.562,584 1558,4351 7,101,446 20,382,159 (1,966.159} 1751.9701 17.664.030 20. Pension commitments The charty oFwales a defined contribub'on pension scheme. pension costs for the year were £29,511 {2020- £28.9291. 21. Operating lease cornmltments At 31 March 2021 the Charity had commitments to make future minimum lease payments under non- cancellable operating leases as follows. 2021 2020 Amounts payable: Within 1 year 41,510 The following lease payrnents and changes in lease payments have been recognised in the statement of financial activities.. 2021 2020 Operating lease renta15 Changes in lease payments arising from COMD-19 related rent concessions 48,916 47.742 (2,6691 46,247 47.742 22. Related party Iran$a¢tions Apart from the transaclions disclosed in note 8. there were no related paty trans8ctions in the year. Page 33 PTEN RESEARCH FOUNDATION (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 23. Posl balan¢e sheet events The ongoing COVID-19 pandemic has adversety impacted global markets, and it is expected that this will also adversely affect the value of the investments held by the Charity and incorne generated from these investments. The extent of the impact on the value of investments held by the charity and income generated from these investments will depend on future developments. including the duration and Spfead of the outbreak, related advice and restrictions and the impact of COVID-19 on the financial market5 and the overall economy. all of whi¢h are highly uncertain and cannot be predicted. If the financial markets andlor the overall economy are impacted for an extended period. the Charity's results may be materially adversely affected and this Could have an impact on the valuation of the Charitys inveslrnenls and income generated from these investments. The Trustees are monitoring the performance of the investment portfolios in conjunction with the inveslment managers and will take the necessary steps to mitigate against any adverse impact due to COWD-19. Page 34