10 INTANGIBLE ASSETS AND GOODWILL (CONTINUED) SubB2M - which is in the research phase and therefore pre-revenue, was assessed for impairment using the replacement cost method. The cost approach reflects the amount that would be required currently to replace the service capacity of an asset less any wastage, obsolescence and costs of disposal. Management determined that no impairment was present at balance date. The assumptions used in the calculation of replacement cost resulted in an excess of fair value less cost of disposal over the carrying amount of 69.27%. GOODWILL - In the 30 June 2022 financial year the Board determined that the value of Goodwill should be removed from INOVIQ’s Statement of Financial Position and an impairment charge of $11,030,560 was recognised. 11 RIGHT OF USE ASSETS As at 30 June 2023 $ As at 30 June 2022 $ Right-of-use Asset – at cost 1,510,256 1,510,256 Accumulated depreciation (918,443) (643,445) 591,813 866,811 At the date of this report INOVIQ had two leased properties. These leases were entered into by subsidiary Sienna Cancer Diagnostics Limited (Sienna) and its U.S subsidiary. Sienna was acquired by INOVIQ on 28 July 2020. The two leases are for separate properties one for a property at 23 Normanby Road, Notting Hill (the current operations base for the Group), and another for a property at 11 Howleys Road, Notting Hill. The lease at Howleys Rd commenced 1 December 2019. Before occupying the property at Howleys Rd, the Company was informed that a superior property in the same vicinity was to become available in June 2020. This property had established laboratory and small-scale manufacturing capabilities whereas these facilities were required to be custom built at the property at Howleys Rd, at an estimated cost of $400,000 to $500,000. A lease was negotiated for the Normanby Rd property and operations commenced at this property during June 2020. A sub tenancy agreement for the Howleys Rd property was subsequently entered into, matching the remaining term of the head lease for the property. The following table provides a summary of the leases that represent the balance of the Right-of-use assets and Lease liability (see Note 13) on the Statement of Financial Position: Property Commencement Date Lease Term End Annual Increases Further Terms 11 Howleys Rd, Notting Hill, Victoria 1 December 2019 30 November 2024 3% 2 x 5 years* 23 Normanby Rd, Notting Hill, Victoria 7 June 2020 6 June 2025 3% 1 x 1 year# * Further terms not included in the calculation of the right-of-use assets and lease liability # Further term included in the calculation of the right-of-use assets and lease liability 12 TRADE AND OTHER PAYABLES As at 30 June 2023 $ As at 30 June 2022 $ Trade and other payables 466,993 1,019,842 Accruals 320,803 26,409 787,796 1,046,251 Trade and other payables are generally unsecured, interest free and with terms ranging from 7 to 30 days. Notes to the Financial Statements for the year ended 30 June 2023 56 INOVIQ Limited
RkJQdWJsaXNoZXIy MjE2NDg3