Review of Operations Directors’ Report Chairman’s Letter CEO’s Report Financial Report Shareholder Information Risk Explanation Climate Risk Natural events caused or affected by changing climate can have an impact on INOVIQ’s business. Conditions may influence the supply of and demand for diagnostics products and services provided by INOVIQ, resulting in varied revenue levels. Climate change may have financial implications for INOVIQ and could potentially cause direct damage to assets, unforeseen price changes, and indirect impacts caused by supply chain or product distribution disruption. It is also possible that climate change may result in an increased cancer risk which would result in greater demand for diagnostic products. However, at this stage, it is not possible to quantify that potential increased demand (if any). Cyber Risk/Data Security Cyber risk is the chance of financial loss, operational disruption, or damage to reputation caused by the failure or misuse of digital technologies and information systems. It stems from malicious attacks, human errors, or technical flaws. Organisations including INOVIQ are becoming more vulnerable to cyber threats due to the increasing reliance on computers, networks, programs, social media and data globally. Data breaches, a common cyber attack, have massive negative business impact and often arise from insufficiently protected data. Data security is the practice of protecting digital information from unauthorised access, theft, or corruption throughout its entire lifecycle. It covers the process of safeguarding digital information throughout its entire life cycle to protect it from corruption, theft, or unauthorised access. For INOVIQ, it covers everything–hardware, software, storage devices, and user devices; access and administrative controls; and organisations’ policies and procedures. Tax law and application The application of and change in, relevant tax laws (including income tax, goods and services tax (or equivalent), rules relating to deductible liabilities and stamp duty), or changes in the way those tax laws are interpreted, will or may impact the tax liabilities of INOVIQ or the tax treatment of an investment in INOVIQ. An interpretation or application of tax laws or regulations by a relevant tax authority that is contrary to INOVIQ’s view of those laws may increase the amount of tax paid or payable by INOVIQ. Both the level and basis of tax may change. Any changes to the current rate of company income tax (in Australia or other countries in which INOVIQ operates now or in the future) and / or any changes in tax rules and tax arrangements (again in Australia or other countries in which INOVIQ operates now or in the future) may increase the amount of tax paid or payable by INOVIQ, may impact a holder of INOVIQ securities’ returns and could also have an adverse impact on the level of dividend franking / conduit foreign income and a holder of INOVIQ securities’ returns. In addition, an investment in INOVIQ securities involves tax considerations which may differ for each holder of INOVIQ securities. Each holder of INOVIQ securities is encouraged to seek professional tax advice in connection with any potential or prospective investment in INOVIQ. INOVIQ has received research and development (R&D) tax incentives for expenditure that has been incurred in the past. Under the R&D incentive framework, both the Australian Taxation Office and AusIndustry are entitled to audit the expenditure incurred on R&D activities to ensure that it has been incurred in accordance with requirements of Division 355 of the Income Tax Assessment Act 1997 (Division 355). To this extent, there is a risk that the some or all of the R&D tax incentives received to date could be required to be repaid (together with interest and penalties) if audits of the claims are conducted and the relevant regulatory authority forms the view that the requirements of Division 355 have not been met in full or in part. Additionally, there is no guarantee of the continuation of the R&D incentive program. If the program ceases or if there is a material adverse change made, INOVIQ may lose a significant sources of funds which may inhibit the Company’s product development and commercialisation objectives. The Company has received cash flows, and anticipates the future receipts, from refundable tax credits of the federal government’s R & D tax incentive scheme. There is no guarantee that the Australian Federal Government will not change its R&D tax incentive program. If the program ceases or a material adverse change is made to the refundable component of the program, a significant funding gap would result, jeopardising the achievement of the Company’s product development and commercialisation objectives. 23 Annual Report 2026
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