Review of Operations Directors’ Report Chairman’s Letter CEO’s Report Financial Report Shareholder Information 28 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 2025 $ As at 30 June 2024 $ Financial assets Cash and cash equivalents 56,085 162,380 Trade and other receivables 164,437 10,274 Total financial assets 220,522 172,654 Financial liabilities Trade and other payables 8,055 12,155 Total financial liabilities 8,055 12,155 The following conversion rates were used at the end of the financial year: USD/AUD: 1.5227 (2024: 1.5055) 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. 29 CONTINGENT ASSET AND LIABILITIES The Group has the following contingent liabilities at 30 June 2025: – 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 2025. 30 SIGNIFICANT EVENTS AND TRANSACTIONS COMPLETION OF 2024 CAPITAL RAISE On 5 July 2024 INOVIQ announced the successful completion of its share purchase plan (SPP), with applications totalling $7.293 million, exceeding the initial target of $2m. INOVIQ Directors exercised discretion to accept allocations to the maximum capacity of A$2.379m and scale back applications pro-rata. The SPP also provided investors with one free quoted option for every two new Shares issued at an exercise price of $1.00 expiring on 8 July 2026. The INOVIQ Board’s participation in the 2024 Capital Raise was approved by shareholders at an extraordinary general meeting held on 21 August 2024 delivering additional funds of $0.25m in August 2024. 59 Annual Report 2025
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