INOVIQ Ltd Annual Report 2022

Grant Thornton Australia Limited Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Key audit matter How our audit addressed the key audit matter Carrying value of goodwill and other intangible assets - refer to note 2 (e) (xi), (xii) and note 10 At 30 June 2022, the carrying value of intangible assets on the balance sheet included $356,658 for the hTERT asset; $9,814,131 for the NETs asset and $1,150,000 for the SubB2M asset. In accordance with AASB 136 Impairment of Assets, management has performed impairment testing on these assets. Impairment losses of $11,030,560 on goodwill and $1,790,842 on the hTERT asset have been recorded in the consolidated statement of comprehensive income and disclosed in note 10. This as a key audit matter due to the significant judgements and estimation uncertainty in determining the carrying value of these assets. Our procedures included, amongst others: • Understanding management’s process and controls for assessment of impairment and identification of cash generating units (CGUs); • Reviewing management’s assessment of impairment indicators; • Evaluating the competence, capabilities and objectivity of the valuation expert engaged by INOVIQ to perform the impairment testing for the NETs asset; • Assessing whether management has the requisite expertise to prepare the impairment model for hTERT, goodwill and SubB2M; • Obtaining management’s impairment testing and, where required, using an auditor’s valuations expert to review the methodology and assumptions; • Evaluating the models against the requirements of AASB 136; • Challenging the appropriateness of management’s revenue and costs forecasts; • Reviewing management’s valuation and: − Testing the mathematical accuracy of the calculations; − Testing forecast cash inflows and outflows to be derived by the CGU assets; − Assessing estimates and judgements for growth rates applied; and − Agreeing discount rates applied to forecast future cash flows; • Validating appropriateness of management’s analysis of the recoverable amount and calculation of the impairment loss; and • Evaluating the adequacy of disclosures in the financial statements. 69 Annual Report 2022

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