Financial Report 27 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) The Group has not formalised a foreign currency risk management policy however, it monitors its foreign currency expenditure in light of exchange rate movements. The Group does not have any further material foreign currency dealings other than the noted currencies. The Group’s exposure to foreign currency risk at the reporting date, expressed in Australian Dollars as follows: As at 30 June 2024 $ As at 30 June 2023 $ Financial assets Cash and cash equivalents 162,380 55,229 Trade and other receivables 10,274 49,813 Total financial assets 172,654 105,042 Financial liabilities Trade and other payables 12,155 8,853 Total financial liabilities 12,155 8,853 The following conversion rates were used at the end of the financial year: USD/AUD: 1.5055 (2023: 1.5009) For all periods presented, the Group did not enter into or hold any foreign exchange derivatives. Given the immaterial exposure, a reasonably possible change in foreign exchange rates would not have a material impact on the financial position or performance of the Group. 28 CONTINGENT ASSET AND LIABILITIES The Group has the following contingent liabilities at 30 June 2024: – Sienna Cancer Diagnostics Limited, a wholly owned subsidiary of INOVIQ Limited, has a contingent liability in the form of milestone payments to Sevident Inc. shareholders, the entity from which Sienna purchased the Molecular Net capture platform technology in April 2019. Sevident Inc. shareholders are entitled to receive up to a value of US$1.5 million in scrip (or cash) upon the realisation of future Molecular Net product revenue milestones. – INOVIQ Limited has contingent liabilities in the form of the milestone payments detailed below, under the SubB2M Technology Licence Agreement with The University of Adelaide: Milestone amount Milestone $50,000 $500,000 in net sales $100,000 $2,000,000 in net sales $400,000 $5,000,000 in net sales $500,000 $20,000,000 in net sales The milestone payments are one off payments on the aggregate of all net sales of all products from the commencement date of the licence agreement and are not payable on a product-by-product or field-by-field basis. The Company is not aware of any other contingent liabilities as at 30 June 2024. 29 SIGNIFICANT EVENTS AND TRANSACTIONS CAPITAL RAISE In June 2024 INOVIQ completed a placement to institutional and sophisticated investors, raising $7.0 million (before costs) via 14 million new fully paid ordinary shares in the Company at $0.50 per Share, with one free quoted option for every two new Shares issued under the Placement with an exercise price of $1.00 and two-year expiry. The pricing of the Placement represented an 11.5% discount to the last traded market price. $0.25m (500,000 Shares) of the Placement (and 250,000 attaching Placement Options), representing the Board’s participation in the capital raise, are subject to shareholder approval at a general meeting to be held on 21 August 2024. 61 Annual Report 2024
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