64 INOVIQ Limited 27 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) The following conversion rates were used at the end of the financial year: CHF/AUD: 1.5144 (2021: 1.4408) USD/AUD: 1.4504 (2021: 1.3334) 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 2022: - On 4 June 2021, the Company announced that it had received from the Plaintiffs particulars, and proposed means of calculation, of their alleged loss and damages relating to the Claim and was reviewing it with its legal advisers. Although the calculations derive a potentially very significant amount of claimed loss and damage by the Plaintiffs, any such claimwill ultimately turn on the evidence and the outcome of the legal proceedings at trial. On 28March 2022, the Company announced that it continues to dispute the basis of the Claim and had filed an amended defence in response to amendments to the Plaintiffs’ statement of claim. The proceeding has been listed for trial in February 2023. - 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 fromwhich 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. - In previous financial statements, the Company has noted it guaranteed the payment of a royalty by Saulyak Limited Liability, based on gold output from the Saulyak Gold Project which was disposed of by the Company on 10 July 2007. Subsequent to the end of this financial year, the Company has confirmed that the company to whom the guarantee was given has been placed in liquidation and as a result, the obligations of the Company in respect of the guarantee has ceased. The Company has confirmed with the Liquidators and the owner of the company with the benefit of the guarantee, that neither they, nor any successor to the company, has any claim on the Company. Accordingly, the contingent liability has ceased and no further disclosure is required in future financial statements of the Company. - 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 2022. 29 BUSINESS COMBINATIONS On 28 July 2020, INOVIQ (formerly BARD1) acquired 100% of the issued share capital and voting rights of Sienna Cancer Diagnostics Limited (Sienna) via a Scheme of Arrangement. Sienna was an ASX listed entity with its head office inMelbourne, Australia. Sienna operated in the same industry sector as INOVIQ, MedTech/Biotechnology, and also developed cancer diagnostic products. The objectives of the merger of the two entities were to expand the portfolio of cancer diagnostic technologies and products, consolidate infrastructure, achieve operational efficiencies, strengthen the management team, and drive the value of the combined business. Notes to the Financial Statements for the year ended 30 June 2022
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