Announcement PDF Appendix 4D Preliminary financial statements for the half-year ended 31 December 2023 Results for announcement to the market Name of Entity ABN Half year ended Previous corresponding reporting period ending Acrux Limited 72 082 001 152 31 December 2023 31 December 2022 Results for announcement to the market $A'000 Revenues from ordinary activities Up 78% to 5,777 (Loss) from ordinary activities after tax attributable to members Down 2% to (3,239) Net (loss) for the period attributable to members Down 2% to (3,239) No dividends have been declared or paid during the reporting period ended 31 December 2023, nor in the previous corresponding reporting period. Net tangible asset per ordinary security 31 December 2023 31 December 2022 $0.02 $0.02 This information should be read in conjunction with the 2023 Annual Report. Additional information supporting the Appendix 4D disclosure requirements can be found in the Directors’ Report and the consolidated financial statements for the half-year ended 31 December 2023. This report is based on the consolidated financial statements for the half-year ended 31 December 2023 which have been reviewed by Pitcher Partners. ACRUX LIMITED AND CONTROLLED ENTITIES ABN: 72 082 001 152 FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 This half-year financial report is to be read in conjunction with the Annual Report 2023 ACRUX LIMITED AND CONTROLLED ENTITIES (ABN: 72 082 001 152) FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 TABLE OF CONTENTS Page Directors’ Report 3 Auditor’s Independence Declaration 7 Financial Report for the half-year ended 31 December 2023 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income 8 Condensed Consolidated Statement of Financial Position 9 Condensed Consolidated Statement of Changes in Equity 10 Condensed Consolidated Statement of Cash Flows 11 12 Notes to the Condensed Consolidated Financial Statements Directors’ Declaration 16 Independent Auditor’s Review Report 17 2 ACRUX LIMITED AND CONTROLLED ENTITIES (ABN: 72 082 001 152) DIRECTORS’ REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 The Directors of the consolidated entity consisting of Acrux Limited (‘Acrux’) and its controlled entities (collectively ‘the Group’) have pleasure in presenting this report for the half-year ended 31 December 2023. Complying with the provisions of the Corporations Act 2001, the Directors report as follows: DIRECTORS’ NAMES The names of the Directors in office during and since the end of the half-year ended 31 December 2023 are: Ross Dobinson Non-executive Chairman Michael Kotsanis Managing Director & Chief Executive Officer Geoffrey Brooke Non-executive Director Don Brumley Non-executive Director Timothy Oldham Non-executive Director All Directors have held office from the start of the financial period to the date of this report. REVIEW OF OPERATIONS A review of the operations of the Group during the half-year and the results of these operations are as follows: Principal Activities Acrux is a specialty pharmaceutical company with a successful track record of developing and commercialising its portfolio of topically applied generic pharmaceutical products utilising dermal and transdermal drug delivery technology and primarily focused on the US market. Acrux currently has 15 products in its pipeline which are at various stages of development ranging from: • formulation and process development • demonstration of bioequivalence with the brand name product • submission of the dossier to the regulator for review • regulatory approval and • product launch and commercialisation. A further 2 products have been identified and which have been approved for commencement of development during 2024. Subsequently the Company plans to add 2 new projects annually. There has been no significant change in the nature of these activities during the reporting period. Key Events During Half Year: Through our commercial distribution partner for Prilocaine 2.5% and Lidocaine 2.5%, Cream sales have grown through 2023. The contract manufacturer for this product has raw material supply and manufacturing capacity available to supply and support further anticipated market share growth. Since June 2023 Acrux has made the following material announcements to the ASX: • in June 2023 Acrux received FDA approval of Dapsone 5%, Gel and preparations are well underway to support launch of this product early in 2024. Dapsone 5%, Gel is used to treat acne vulgaris and (as measured by IQVIA in October 2023) the annual addressable market is US$15.5 million 3 ACRUX LIMITED AND CONTROLLED ENTITIES (ABN: 72 082 001 152) • • • Nitroglycerin 0.4%, Ointment was accepted for review by the FDA in July 2023. This product treats moderate to severe pain associated with chronic anal fissure and has an annual addressable market of US$21.6 million as measured by IQVIA in October 2023 in September, in conjunction with our commercial partner, we concluded a review of the market for Testosterone Topical Solution. We agreed to exit this market and the distribution agreement was mutually terminated in November 2023, $2.869 million was received from the Australian Taxation Office in relation to Research and Development Tax Incentive Rebates (‘RDTI’) including eligible overseas expenditure for the year ended 30 June 2023. Business Strategy Acrux’s key operational strategy is to develop and expand its pipeline of topically applied generic pharmaceutical products to create a portfolio which is capable of generating a consistent stream of regulatory submissions and product approvals, market launches and ultimately a revenue stream from a diversified range of products. Acrux currently has 6 products with regulatory approval, including 2 which are currently generating revenue, namely Prilocaine 2.5% and Lidocaine 2.5%, Cream and Evamist®. Dapsone 5%, Gel has been approved by the FDA and the product launch is planned for early in 2024. 3 Acrux ANDAs are currently under FDA review: • Nitroglycerin 0.4%, Ointment, a treatment for moderate to severe pain caused by chronic anal fissure • Acyclovir 5%, Cream, a treatment for cold sores • Dapsone 7.5%, Gel, a treatment for acne vulgaris The FDA administers the ANDA review process and the time to final approval is influenced by both the number and the nature of questions that may arise as each FDA review progresses. There are additional products in our portfolio that are at different stages of development, ranging from early stage formulation development through to process development and demonstration of bioequivalence and finally to regulatory dossier preparation. Acrux presently has a total of 15 topical generic products in our portfolio (including Testosterone Topical Solution) and a further 2 products have been identified and approved for commencement over 2024. It is our expectation that the portfolio will continue to be expanded over time through the addition of 2 new projects each year. This portfolio strategy supports our core objective of having a number of products to launch through 2024 and beyond, which is critical to creating a sustainable revenue stream and future expansion of our product pipeline. This underpins future corporate growth and shareholder value. In December 2022, Prilocaine 2.5% and Lidocaine, 2.5%, Cream, a topical local anesthetic, became Acrux’s fourth marketed product. Early in 2023 a key market competitor, which held more than 70% of the reported market share at that time, withdrew from the market. Together with our raw material suppliers, manufacturing and commercial partners, Acrux expanded the capacity to supply this market and we are pleased to report that our distribution partner is achieving significant market share for this product. The estimated annual addressable US market for the product is US$35.6 million, as measured by IQVIA in October 2023. Preparations are advanced to launch Dapsone 5%, Gel early in 2024. Dapsone 5%, Gel is used to treat acne vulgaris. As measured by IQVIA in October 2023, the annual addressable US market is US$15.5 million. 4 ACRUX LIMITED AND CONTROLLED ENTITIES (ABN: 72 082 001 152) In December 2023, Acrux also entered into an additional manufacturing contract for one of its pipeline products with a new contract manufacturer. The technical transfer process for this product has begun ahead of the planned manufacturing of exhibit batches that are required for a regulatory submission for FDA review. Operating Results The consolidated loss after tax was $3.239 million (2022 loss: $3.294 million) and this reflects both commercial revenue growth and the timing of project expenses incurred in progressing the Group's generic development pipeline towards commercialisation. Revenue Total reported Revenue is detailed in the table below. Half year ended 31 December 2023 $’000 481 3,928 1,285 83 5,777 Product licensing income Sales Revenue –API R&D Incentive Rebate Interest Received Total Revenue Half year ended 31 December 2022 $’000 954 467 1,800 28 3,249 Product licensing income from commercialised products reflects the Group’s transition following the buyout of the future Lenzetto® royalty stream by our licensee, Gedeon Richter Plc. which was transacted in January 2023. Licensing income now predominantly reflects profit share income associated with Prilocaine 2.5% and Lidocaine 2.5%, Cream which is marketed by Padagis in the United States and which was launched in December 2022. Under the terms of the commercialisation agreement with Padagis, Acrux is currently responsible for the procurement of the Active Pharmaceutical Ingredients (‘API’) which are used in the commercial manufacture of Prilocaine 2.5% and Lidocaine 2.5%, Cream. These API purchases are recorded as Cost of Goods Sold and are in turn invoiced to Padagis and are included as Sales Revenue. The increased value of purchases and sales of Prilocaine and Lidocaine API reflect the increase in manufacturing activity relative to the prior comparative period, when the API had been purchased for the manufacture of launch stocks. In November, Acrux reported receipt of $2.869 million Research and Development Tax Incentive Rebates (‘RDTI’) in relation to the year ended 30 June 2023. $1.285 million RDTI Income has been reported for the period ended 31 December 2023. Of this balance, $1.138 million is an estimate of the amount which is receivable for the reporting period ending 31 December 2023, based on eligible project development expenditure incurred plus $0.146 million which reflects higher than estimated RDTI which was received for FY23 in November 2023. Operating Expenses At $4.710 million Total Operating Expenses were $1.129 million (19%) lower than the prior corresponding period. This reduction is principally attributable to the timing of external research and development project expenses, the costs of which vary throughout the product development cycle depending on the stage of development of the project. 5 ACRUX LIMITED AND CONTROLLED ENTITIES (ABN: 72 082 001 152) Dividends No dividends have been declared or paid in the period to 31 December 2023 (2022: nil). After balance date events No matter or circumstance has arisen since 31 December 2023 that has significantly affected, or may significantly affect, the Group’s operations, results or state of affairs, or may do so in future periods. Auditor’s independence declaration A copy of the Auditor’s Independence Declaration in relation to the review for the period is provided with this report. Rounding of amounts The Group is a group of the kind referred to in ASIC Corporations (Rounding in Financial/Directors' Reports) Instrument 2016/191, dated 24 March 2016, and in accordance with that Corporations Instrument, amounts in this Directors’ Report and financial statements have been rounded to the nearest one thousand dollars, unless otherwise indicated. Signed in accordance with a resolution of the Directors made pursuant to s306(3) of the Corporations Act 2001. On behalf of the Directors Ross Dobinson Non-executive Chairman 27 February 2024 6 ACRUX LIMITED AND CONTROLLED ENTITIES ABN 72 082 001 152 AUDITOR’S INDEPENDENCE DECLARATION TO THE DIRECTORS OF ACRUX LIMITED AND CONTROLLED ENTITIES In relation to the independent auditor’s review for the half-year ended 31 December 2023, to the best of my knowledge and belief there have been: (i) no contraventions of the auditor independence requirements of the Corporations Act 2001; and (ii) no contraventions of APES 110 Code of Ethics for Professional Accountants (including Independence Standards). This declaration is in respect of Acrux Limited and the entities it controlled during the period. N R BULL Partner PITCHER PARTNERS Melbourne 27 February 2024 Pitcher Partners. An independent Victorian Partnership ABN 27 975 255 196. Level 13, 664 Collins Street, Docklands, VIC 3008 Pitcher Partners is an association of independent firms. Liability limited by a scheme approved under Professional Standards Legislation. Pitcher Partners is a member of the global network of Baker Tilly International Limited, the members of which are separate and independent legal entities Adelaide Brisbane Melbourne Newcastle Sydney Perth ACRUX LIMITED AND CONTROLLED ENTITIES (ABN: 72 082 001 152) CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 Note Revenue Revenue from licensing agreements Other revenue Total Revenue Consolidated Half Year Ended 31 December 31 December 2023 2022 $’000 $’000 4,409 1,368 5,777 1,421 1,828 3,249 Less: Cost of Goods Sold 3,928 493 Less: Operating Expenses Employee benefits expense Directors' fees Securities based payment expense Depreciation and amortisation expense Occupancy expense External research and development expense Professional fees Other expense Total Operating Expenses 2,499 98 182 258 109 1,147 83 334 4,710 2,652 98 184 301 114 1,926 116 448 5,839 Loss Before Income Tax Income tax expense Net loss for the half year Total comprehensive loss for the half year (2,861) 378 (3,239) (3,239) (3,083) 211 (3,294) (3,294) Total Comprehensive Loss attributable to members of the parent company (3,239) (3,294) (1.12) cents (1.12) cents (1.15) cents (1.15) cents Loss Per Share: Basic loss per share Diluted loss per share 1 The accompanying notes form part of these financial statements. 8 ACRUX LIMITED AND CONTROLLED ENTITIES (ABN: 72 082 001 152) CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2023 Note Current Assets Cash and cash equivalents Receivables Other current assets Total Current Assets Non-Current Assets Plant and equipment Intangible assets Deferred tax asset Lease assets Total Non-Current Assets Total Assets Current Liabilities Payables Provisions Lease liabilities Total Current Liabilities Non-Current Liabilities Provisions Lease liabilities Total Non-Current Liabilities Total Liabilities Net Assets Equity Contributed equity Reserves Retained earnings / (Accumulated losses) Total Equity 3 4 4 4 Consolidated 31 December 30 June 2023 2023 $’000 $’000 4,565 3,942 652 9,159 6,232 3,306 353 9,891 536 425 1,896 2,857 12,016 559 803 2,032 3,394 13,285 3,282 803 305 4,390 1,372 826 192 2,390 34 1,954 1,988 6,378 5,638 38 2,161 2,199 4,589 8,696 114,986 8,378 (117,726) 5,638 114,884 8,299 (114,487) 8,696 The accompanying notes form part of these financial statements. 9 ACRUX LIMITED AND CONTROLLED ENTITIES (ABN: 72 082 001 152) CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 Total Equity $’000 Retained earnings /(losses) $’000 114,884 8,299 (114,487) 8,696 Loss attributable to members of the consolidated entity Other comprehensive income Total comprehensive loss for the half year - - (3,239) (3,239) (3,239) (3,239) Transactions with owners: Employee share scheme Balance at the half year ended 31 December 2023 102 114,986 79 8,378 (117,726) 181 5,638 Balance at 1 July 2022 114,563 8,250 (113,723) 9,090 Loss attributable to members of the consolidated entity Other comprehensive income Total comprehensive loss for the half year - - (3,294) (3,294) (3,294) (3,294) Transactions with owners: Employee share scheme Balance at the half year ended 31 December 2022 184 114,747 8,250 (117,017) 184 5,980 Balance at 1 July 2023 Contributed equity Reserves $’000 The accompanying notes form part of these financial statements. 10 $’000 ACRUX LIMITED AND CONTROLLED ENTITIES (ABN: 72 082 001 152) CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 Consolidated Half Year Ended 31 December 31 December 2023 2022 $’000 $’000 Cash flows from operating activities Receipts from client contracts Payments to suppliers and employees Interest received Research and development tax incentive rebate received Net cash used in operating activities 2,190 (6,505) 122 2,869 (1,324) 1,239 (6,298) 25 3,732 (1,302) Cash flows from investing activities Payment for property, plant and equipment Net cash used in investing activities (156) (156) (3) (3) Cash flows from financing activities Lease liability principal repayments Finance costs Proceeds from capital raising Net cash used in financing activities (94) (93) (187) (93) (83) (176) (1,667) 6,232 4,565 (1,481) 5,831 4,350 Net (decrease) / increase in cash and cash equivalents Cash and cash equivalents at beginning of half year Cash at the end of the period The accompanying notes form part of these financial statements 11 ACRUX LIMITED AND CONTROLLED ENTITIES (ABN: 72 082 001 152) NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 General information Statement of compliance This half-year financial report is a general purpose financial report prepared in accordance with the Corporations Act 2001 and AASB 134 Interim Financial Reporting. Compliance with AASB 134 ensures compliance with International Financial Reporting Accounting Standard IAS 34 Interim Financial Reporting. The half-year financial report does not include notes of the type normally included in an annual financial report and should be read in conjunction with the most recent annual financial report. Basis of preparation The condensed consolidated financial statements for the half-year ended 31 December 2023 have been prepared on the basis of historical cost. Cost is based on the fair values of the consideration given in exchange for assets. All amounts are presented in Australian dollars unless otherwise noted. The Group is a group of the kind referred to in ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191, dated 24 March 2016, and in accordance with that Corporations Instrument, amounts in the half-year financial report are rounded to the nearest thousand dollars, unless otherwise indicated. The accounting policies and methods of computation adopted in the preparation of the half-year financial report are consistent with those adopted and disclosed in the Group’s Annual Report for the financial year ended 30 June 2023. The accounting policies are consistent with Australian Accounting Standards and with International Financial Reporting Standards. The Group has applied all new and revised Australian Accounting Standards and Interpretations that are applicable to reporting periods beginning on or after 1 July 2023. Application of new and revised Australian Accounting Standards did not materially impact on this half year financial report. Going concern basis of preparation This financial report has been prepared on a going concern basis contemplating continuity of normal business activities and realisation of assets and settlement of liabilities in the ordinary course of business. The Group incurred a loss after tax from ordinary activities of $3.239 million for the half-year ended 31 December 2022 (31 December 2022: $3.294 million). The Group reports total Cash and cash equivalents of $4.565 million which is a reduction of $1.667 million from 30 June 2023 and is similar to the reduction of $1.481 million to $4.350 million which was reported for the prior corresponding period to 31 December 2022. The ability of the Group to continue as a going concern is dependent on the generation of future revenues to support cashflows from operating activities. 12 ACRUX LIMITED AND CONTROLLED ENTITIES (ABN: 72 082 001 152) NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 (continued) 1. SEGMENT REPORTING The Group operates as a single operating segment. Internal management reporting systems present financial information as a single segment which derives its revenue from developing and commercialising topically applied prescription pharmaceutical products. Geographical segment information Australia Europe and other countries United States 31 December 2023 $'000 31 December 2022 $'000 1,368 4,409 5,777 1,828 946 475 3,249 4,409 1,285 83 5,777 1,421 1,800 28 3,249 Revenue by product group and services provided Income received from licensing agreements R&D Tax Incentive Rebate Interest received 2. KEY MANAGEMENT PERSONNEL Remuneration arrangements of Key Management Personnel are disclosed in the Annual Report. Following approval at the Annual General Meeting held on 29 November 2023, 4,864,243 rights were issued to Non-executive Directors to the approximate value of half of their annual remuneration. These rights vest on a quarterly basis over a period of one year, subject only to continuity of service. Director Name Geoff Brooke Don Brumley Ross Dobinson Tim Oldham 3. INTANGIBLE ASSETS External development expenditure capitalised Accumulated amortisation Total intangible assets Number of Rights Issued 1,062,946 1,062,946 1,675,405 1,062,946 31 December 2023 $’000 30 June 2023 $’000 1,071 (1,071) - 1,071 (1,071) - 13 ACRUX LIMITED AND CONTROLLED ENTITIES (ABN: 72 082 001 152) NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 (continued) 3. INTANGIBLE ASSETS, continued Reconciliation of the carrying value of capitalised development at the beginning and end of the current reporting period: 31 December 30 June 2023 2023 $’000 $’000 Carrying value of Estradiol spray at the start of the period 375 Impairment (321) Amortisation (54) Carrying value of Estradiol spray at the end of the period Estradiol spray was fully impaired during the year ended 30 June 2023 following the sale of future Lenzetto® royalties in relation to European and other territories. Estradiol spray is still marketed as Evamist® in the US market on behalf of Acrux by Padagis generating nominal quarterly revenue. 4. LEASING The Group leases its office, laboratory and warehouse facilities. This lease has been extended for the first of the 3 options of 3 years each. This first 3 year lease extension period commenced on 1 June 2022 and the 2 additional options to extend for 3 year periods commence on 1 June 2025 and 1 June 2028. There is no option to purchase the leased asset at the expiry of the lease period. Lease liabilities are presented in the consolidated statement of financial position as follows: Lease liabilities (current) Lease liabilities (non-current) Total carrying amount of lease liabilities Carrying amount of lease assets, by class of underlying asset: Buildings under lease arrangements At cost Accumulated depreciation Total carrying value of buildings under lease arrangements Plant and equipment under lease arrangements At cost Accumulated depreciation Total carrying value of plant and equipment under lease arrangements Total carrying value of leased assets 31 December 2023 000’s 30 June 2023 000’s 305 1,954 2,259 192 2,161 2,353 2,867 (980) 1,887 2,867 (854) 2,013 89 (80) 9 89 (70) 19 1,896 2,032 14 ACRUX LIMITED AND CONTROLLED ENTITIES (ABN: 72 082 001 152) NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 (continued) 5. CONTINGENCIES There were no contingencies as at 31 December 2023. 6. AFTER BALANCE DATE EVENTS No matter or circumstance has arisen since 31 December 2023 that has significantly affected, or may significantly affect, the Group’s operations, results or state of affairs, or may do so in future periods. 15 ACRUX LIMITED AND CONTROLLED ENTITIES (ABN: 72 082 001 152) DIRECTORS' DECLARATION The Directors declare that: (a) in the Directors’ opinion, the attached financial statements and notes thereto are in accordance with the Corporations Act 2001, including compliance with accounting standards and giving a true and fair view of the financial position and performance of the consolidated entity. (b) in the Directors’ opinion, there are reasonable grounds to believe that the Group will be able to pay its debts as and when they become due and payable; and Signed in accordance with a resolution of the Directors made pursuant to s.303(5) of the Corporations Act 2001. On behalf of the Directors Ross Dobinson Non-executive Chairman Melbourne 27 February 2024 16 ACRUX LIMITED AND CONTROLLED ENTITIES ABN 72 082 001 152 INDEPENDENT AUDITOR’S REVIEW REPORT TO THE MEMBERS OF ACRUX LIMITED AND CONTROLLED ENTITIES Report on the Half-Year Financial Report Conclusion We have reviewed the half-year financial report of Acrux Limited, “the Company” and its controlled entities “the Group”, which comprises the condensed consolidated statement of financial position as at 31 December 2023, the condensed consolidated statement of comprehensive income, condensed consolidated statement of changes in equity and condensed consolidated statement of cash flows for the half-year ended on that date, a summary of significant accounting policies and other explanatory information, and the directors’ declaration. Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the accompanying half-year financial report of the Group does not comply with the Corporations Act 2001 including: (a) giving a true and fair view of the Group’s financial position as at 31 December 2023 and of its performance for the half-year ended on that date; and (b) complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. Basis for Conclusion We conducted our review in accordance with ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity. Our responsibilities are further described in the Auditor’s Responsibilities for the Review of the Financial Report section of our report. We are independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the annual financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We confirm that the independence declaration required by the Corporations Act 2001 which has been given to the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor’s review report. Responsibility of the Directors for the Financial Report The directors of Acrux Limited are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. Auditor’s Responsibility for the Review of the Financial Report Our responsibility is to express a conclusion on the half-year financial report based on our review. ASRE 2410 requires us to conclude whether we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including giving a true and fair view of the Group’s financial position as at 31 December 2023 and its performance for the half-year ended on that date, and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. ACRUX LIMITED AND CONTROLLED ENTITIES ABN 72 082 001 152 INDEPENDENT AUDITOR’S REVIEW REPORT TO THE MEMBERS OF ACRUX LIMITED AND CONTROLLED ENTITIES A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. N R BULL Partner 27 February 2024 PITCHER PARTNERS Melbourne