It should be noted that the Board and management have taken this action to ensure compliance with the accounting standards and does not reflect their view of the significant commercial opportunities provided by the Group’s intellectual property. Product revenues for the hTERT test totalled $276,745 (2021: $468,096). Income from other sources was $1,786,130 (2021: $1,003,957) including an accrual of $1,316,437 for the Research and Development Tax Incentive Refund for the 2021 and 2022 financial years (2021: receipt of $643,542 for the 2020 financial year). The refund for 2021 is expected to be received in the coming months. Grant income contributed $404,025 (2021: $317,533), comprising $368,137 from the BTB Grant supporting the SubB2M breast cancer program and $35,888 from the Export Market Development Grant. Interest and miscellaneous income added $65,668 (2021: $42,882). The Group’s reported total operating expenditures, other than impairment of intangible assets and goodwill, were $9,439,517 (2021: $8,112,645). General and administration costs were $5,855,103 (2021: $4,390,832) with the following significant contributors: – employee expenditure $1,770,247 (2021: $1,957,324) including non-cash share options expense of $239,651 (2021: $685,397); – consulting and legal fees $1,514,422 (2021: $624,620) including fees paid to defend the Supreme Court Writ; – amortisation of intangible assets $1,677,408 (2021: $512,400) for the hTERT andMolecular Nets intangible assets; and – ASX listing and share registry fees of $213,426 (2021: $204,308). Research and Development expenditure was $3,035,963 (2021: $3,415,240). The majority of expenditure was incurred on the SubB2M andMolecular Nets programs. Included in this figure was employee related expenditure of $1,255,196 (2021: $1,635,965) and $1,573,161 (2021: $1,594,056) paid to external contractors and suppliers. Sales andMarketing expenditure was $548,451 (2021: $306,574) of which employee related expenditure contributed $437,766 (2021: $277,246). Non-cash expenditures recorded (within the three categories of expenditure – General and Administration, Research and Development, and Sales andMarketing) for the reporting period included: – amortisation of intangible assets $1,677,408 (2021: $512,400) for the hTERT andMolecular Nets intangible assets and $34,354 (2021: $36,735) related to granted patents; – depreciation of right-of-use assets (required by accounting standard AASB16 – Leases) $274,998 (2021: $273,486); – depreciation of building improvements $32,247 (2021: $25,581) and depreciation of plant and equipment $82,584 (2021: $61,809); – share based payments expense of $239,651 (2021: $685,397); – intangible asset and goodwill impairment of $12,821,402 (2021: $7,321,047); and – lease liability interest expense, as required by AASB16, $81,963 (2021: $99,204). The loss recorded for the reporting period was reduced by the recognition of a $2,058,513 (2021: $2,874,805) tax credit resulting from the recognition of the deferred tax asset associated with INOVIQ’s carried forward tax losses and the reduction in the carrying values of the Group’s intangible assets. 21 Annual Report 2022
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