38 INOVIQ Limited 1 CORPORATE INFORMATION The financial report of INOVIQ Limited (the Company) and its subsidiaries (the Group) for the year ended 30 June 2022 was authorised for issue in accordance with a resolution of the directors on 27 September 2022. INOVIQ Limited is a Company limited by shares incorporated and domiciled in Australia and whose shares are publicly traded on the Australian Securities Exchange. The company is a for-profit entity. The principal activities of the Group during the financial year were the research and development of non-invasive diagnostic tests for early detection of cancer. The Company’s registered office is located at 23 Normanby Road, Notting Hill Victoria 3168 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Going Concern For the year ended June 30, 2022, the Company incurred a loss after income tax of $18,195,977 (2021: $11,150,880). Stripping out the noncash impairment charges, the Group’s operating loss was $5,374,575 (2021: $3,829,833). Net cash outflow from operations was $6,061,160 (2021: $5,260,377). The Company expects to continue to incur losses and cash outflows for the foreseeable future as it continues to add resources to continue research and development of its key technology platforms and expand commercial capabilities for the promotion and distribution of EXO-NET and future market opportunities. The Company had $15,394,847 cash and cash equivalents as at June 30, 2022. In the Directors’ opinion, based upon outflow of cash for operations for the 2022 financial year, the Company has sufficient cash reserves to fund operations for at least the next 12 months. The financial statements have therefore been prepared on a going concern basis. (b) Basis of Preparation The financial report is a general-purpose financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001, Australian Accounting Standards, and other authoritative pronouncements of the Australian Accounting Standards Board (AASB). The financial statements comply with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. The financial report has been prepared on an accruals basis and is based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets, and financial liabilities. The financial report is prepared in Australian dollars. (c) Compliance Statement The Group has adopted all of the new and revised Standards and Interpretations issued by AASB that are relevant to its operations and effective for annual reporting periods beginning on 1 July 2021. (d) New or amended accounting standards and interpretations adopted The Group has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (‘AASB’) that are mandatory for the current reporting period. Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. (e) Statement of Significant Accounting Policies (i) Basis of Consolidation The consolidated financial statements comprise the financial statements of INOVIQLimited and its subsidiaries as at 30June 2022. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an investee if and only if the Group has: – Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee); – Exposure, or rights, to variable returns from its involvement with the investee; and – The ability to use its power over the investee to affect its returns. When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including: – The contractual arrangement with the other vote holders of the investee – Rights arising from other contractual arrangements – The Group’s voting rights and potential voting rights Notes to the Financial Statements for the year ended 30 June 2022
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