Announcement PDF Atomo Diagnostics Limited Appendix 4D Half-year report 1. Company details Name of entity: ABN: Reporting period: Previous period: Atomo Diagnostics Limited 37 142 925 684 For the half-year ended 31 December 2023 For the half-year ended 31 December 2022 2. Results for announcement to the market AUD Revenues from ordinary activities up 42% to 1,923,371 Loss from ordinary activities after tax down 45% to (3,152,282) Loss for the half-year down 44% to (3,172,922) 31 31 December December 2023 2022 AUD Cents AUD Cents Basic earnings per share Diluted earnings per share (0.50) (0.50) (1.01) (1.01) Dividends There were no dividends paid, recommended or declared during the current financial period. Comments Refer to the 'Operating and Financial Review' within the Directors' Report for further commentary on the halfyear's results, financial position and likely developments in future years. 3. Net tangible assets Reporting Previous period period AUD Cents AUD Cents Net tangible assets per ordinary security 1.66 2.75 The net tangible assets / (liabilities) per ordinary security is calculated based on 639,202,310 ordinary shares on issue as at 31 December 2023, and 570,890,991 ordinary shares that were on issue as at 31 December 2022. 4. Control gained over entities Not applicable. 5. Loss of control over entities Not applicable. 6. Details of associates and joint venture entities Not applicable. Atomo Diagnostics Limited Appendix 4D Half-year report 7. Audit qualification or review The financial statements were subject to a review by the auditors and the review report is attached as part of the Half Year Financial Report. 8. Attachments Details of attachments (if any): The Half Year Financial Report of Atomo Diagnostics Limited for the half-year ended 31 December 2023 is attached. 9. Signed Signed ___________________________ John Keith Chair Sydney Date: 26 February 2024 Atomo Diagnostics Limited ABN 37 142 925 684 Half Year Financial Report - 31 December 2023 Atomo Diagnostics Limited Corporate directory For the half-year ended 31 December 2023 Directors John Keith (Chair & Non-Executive Director) John Kelly (Managing Director) Paul Kasian (Non-Executive Director) Deborah Neff (Non-Executive Director) Cheri Walker (Non- Executive Director) Company secretary Maria Clemente Registered office Level 1 3 - 5 George Street Leichhardt NSW 2040 Principal place of business Level 1 3 - 5 George Street Leichhardt NSW 2040 Share register Boardroom Pty Limited Level 8 210 George Street Sydney NSW 2000 Auditor BDO Audit Pty Ltd Level 11, 1 Margaret Street Sydney NSW 2000 Solicitors HWL Ebsworth Lawyers Level 14, Australia Square 264 - 178 George Street Sydney NSW 2000 Stock exchange listing Atomo Diagnostics Limited shares are listed on the Australian Securities Exchange (ASX code: AT1) Website www.atomodiagnostics.com 1 Atomo Diagnostics Limited Directors' report For the half-year ended 31 December 2023 The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'group') consisting of Atomo Diagnostics Limited (referred to hereafter as the 'company' or 'parent entity') and the entities it controlled at the end of, or during, the half-year ended 31 December 2023. All amounts are presented in Australian dollars (AUD) unless otherwise stated. Directors The following persons were directors of Atomo Diagnostics Limited during the whole of the financial half-year and up to the date of this report, unless otherwise stated: Director John Keith (Chair & Independent Non-Executive Director) John Kelly (Managing Director) Paul Kasian (Non-Executive Director) Deborah Neff (Non-Executive Director) Cheri Walker (Non-Executive Director) Curt LaBelle (Non-Executive Director) Appointed 2 December 2011 1 April 2010 4 February 2020 15 September 2021 15 November 2022 1 April 2010 Resigned n/a n/a n/a n/a n/a 19 December 2023 The Company Secretary is Maria Clemente, who was appointed on 1 March 2023. Principal activities The principal activities of the group during the course of the half-year were the development and sale of medical devices. There were no significant changes in the nature of the activities of the group during the half-year. Review of operations The loss for the group for the half year after providing for income tax amounted to $3,152,282 (H1 FY23: 31 December 2022: $5,743,450). Revenue of approximately $1.92m comprised product sales of $1.52m for HIV point-of-care tests and $407k for OEM point-of-care technology. Revenue and margin improved significantly, with sales increasing ~98% and margin improving from ~39% to ~46% for comparative period HY23 (excluding COVID). Ongoing measures continued to be undertaken during the period to reduce operating expenditure for the group. With investment already made in the development and commercialisation of Atomo's novel patent-protected rapid test devices and finished test products, and with manufacturing capacity installed and validated, capital expenditure has reduced very significantly. The focus has been on investing prudently in key areas of the business to support market facing and revenue generating activities. Atomo continued to invest in business development activities, in particular in securing new OEM cassette supply customers following the regulatory approval of the Pascal cassette by US FDA. Commercial activities related to finished product related to expansion of HIV test business in Europe through a strategic partnership with Newfoundland Diagnostics and direct to pharmacy in Australia. Development efforts have been directed to securing TGA approval for a blood based pregnancy test in Australia and preparing a product dossier for an Iron deficiency test. As at 31 December 2023, cash and cash equivalents amounted to $6.5 million, with no debt. 2 Atomo Diagnostics Limited Directors' report For the half-year ended 31 December 2023 Significant changes in the state of affairs ● On 1 July 2023 and 19 October 2023, the board exercised its discretion to allocate 6,100,000 options and 500,000 options respectively to employees, under the company's employee share plan. The option awarded in recognition of the performance of key staff throughout the year and to support retention of key talent needed to deliver the company's business objectives. ● On 22 August 2023, 1,733,332 options issued to executives under the Company's Post IPO option plan lapsed as the KPI's applicable to the options were not satisfied with respect to the year ended 30 June 2023. ● On 22 August 2023, the Company issued 568,333 options to executives under the Company's Post IPO option plan to reward the diligent execution of the corporate strategy and to ensure retention of the key talent needed to deliver strategic outcomes in the interest of shareholders. ● On 13 July 2023 Atomo completed a Placement to institutional and sophisticated investors at $0.036 per share to raise $1.25m. Respectively 34,977,932 shares were issued. A Share Purchase Plan was undertaken with Eligible Shareholders that raised $0.46m at a price of $0.03 per share which closed on 1 August 2023, and an SPP shortfall placement was made to institutional investors on the same terms as the SPP to raise $0.54m. Respectively 33,333,387 shares were issued. There were no other significant changes in the state of affairs of the group during the financial half-year. Likely developments and expected results of operations With approximately $6.5 million of cash at bank and no debt, Atomo continues to be well funded to pursue its key priorities in the second half of FY24: ● ● ● Continued growth in HIV Self-Test sales revenues and margins through increased participation in developed markets, including the UK, Europe and Australia. UK / European growth has been driven by a change of distributor and subsequent launch of product through TESCO supermarkets in the UK and pharmacy chains in Germany. Australian growth has been based on launch through a number of pharmacy groups as well as recent increased public health support for a number of self-test access pilots. Focus on the expansion of Atomo’s Point of Care technology supply business, with a FDA 510(k) clearance obtained by Lumos Diagnostics for their FebriDx test on the Atomo Pascal device opening up a predicate pathway for approval of other tests by Atomo and new Pascal customers. Recent partnership referral agreements entered into with leading test strip assay development companies that have customers bringing new tests to market are expected to assist with awareness and availability of Atomo’s devices and generate new OEM business development contracts, with a number of recent enquiries relating to Atomo’s integrated swab device and custom solutions to support clip in reader compatibility. Securing regulatory approvals and launching Atomo’s new rapid test products in key markets. The two new women’s health focused priority markets to being commercialised with the most progressed being a blood based rapid pregnancy test that was submitted to the Australian TGA in April 2023. The second test is for the monitoring of iron deficiency. Business risk The group's operations are not subject to any significant environmental regulation under Australian Commonwealth or State law. The company has identified the following material business risks that may cause its revenue and profitability to decline and are important to key stakeholders such as investors, consumers, customers, supplier, governments and employees. ● ● Regulatory risk: The company sells medical devices and finished products that require regulatory approvals to be maintained (for existing approved products), and to be obtained (for new products) in multiple jurisdictions. This includes obtaining and maintaining product approvals from the TGA in Australia, the FDA in the US, Health Canada in Canada, comparable bodies in Asia and South America, the World Health Organisation for LMIC global health markets, and compliance with the IVDD and IVDR regimes in Europe. There are risks associated with these regulatory approvals that may impact on the business should approvals be withdrawn for existing products or not obtained for new products. Product quality and safety: Should quality or safety issues arise with Atomo's products, there is the potential for negative financial and or reputational impacts. To mitigate this risk Atomo sources materials from quality suppliers, complies with ISO 13485 Medical Devices Quality Management, and delivers safe products to customers. Atomo aims to adhere to or exceed strict regulatory standards in all jurisdictions that it serves, 3 Atomo Diagnostics Limited Directors' report For the half-year ended 31 December 2023 ● ● ● ● ● ● ● ● and investigates all concerns to ensure our products maintain the highest quality. We are frequently inspected by independent regulatory authorities auditing compliance with these standards. Compliance: Responsibility to drive compliance with legal and regulatory requirements applicable to our global business. Includes development of policies and controls, communication and training, oversight and continuous improvement. Consequently, compliance affects every aspect of what we do, to deliver quality products to consumers. Supply chain: Responsibility to partners to ensure our product line is free from human rights concerns such as forced labour and trafficking, unsafe labour standards and unfair treatment. Atomo relies on third party manufacturers in certain areas and as such has potential exposure to supply chain disruption risks. The company takes steps to stay closely engaged with its supply chain and ensures sufficient stock on hand to mitigate this risk. Employees and skilled labour: Atomo's business relies on key qualified personnel. Atomo seeks to ensure our employees are appropriately remunerated and work in a safe environment, which meets or exceeds relevant regulatory expectations, addresses health and safety concerns as they arise and mitigates the risk of reoccurrence of incidents. Operational risk: Atomo has international operations, including a manufacturing facility in South Africa and as such is potentially exposed to additional political, legal, economic and regulatory risk specific to those locations. Atomo operates in a competitive industry: Strategies and initiatives designed to provide diagnostics at competitive prices to ensure it can develop, manufacture and market high-quality generic and branded products, with a particular focus on accessible diagnostics for the global health and Lower and Middle Income markets. Corruption and bribery: Business must be conducted with transparency, and free from unethical persuasion. Ethical business practices relate to every aspect of Atomo's business, from identifying product sources, through the development of diagnostics, transactions with regulatory bodies and sale to customers. Resource use and waste management: Includes energy usage during manufacture and logistics, water usage and waste as a by-product of manufacture, with particular consideration given to the fact that the products are classified as medical waste upon use. Climate risk: The board is considering on an ongoing basis the potential response to climate risk and considering potential implementation of a formal review and policy response in future years. The Board believes that the group has adequate systems in place for the management of its exposure to environmental and social risks. Proceedings on behalf of the Group No person has applied to the Court under Section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the group, or to intervene in any proceedings to which the group is a party for the purpose of taking responsibility on behalf of the group for all or part of those proceedings. Rounding of Amounts The group is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian Securities and Investments Commission, relating to 'rounding-off'. Amounts in this report have been rounded off in accordance with that Corporations Instrument to the nearest dollar. Auditor's independence declaration A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out immediately after this directors' report. 4 Atomo Diagnostics Limited Directors' report For the half-year ended 31 December 2023 This report is made in accordance with a resolution of directors, pursuant to section 306(3)(a) of the Corporations Act 2001. On behalf of the directors ___________________________ John Keith Chair 26 February 2024 Sydney 5 Tel: +61 2 9251 4100 Fax: +61 2 9240 9821 www.bdo.com.au Level 11, 1 Margaret St Sydney NSW 2000 Australia DECLARATION OF INDEPENDENCE BY GARETH FEW TO THE DIRECTORS OF ATOMO DIAGNOSTICS LIMITED As lead auditor for the review of Atomo Diagnostics Limited for the half-year ended 31 December 2023, I declare that, to the best of my knowledge and belief, there have been: 1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and 2. No contraventions of any applicable code of professional conduct in relation to the review. This declaration is in respect of Atomo Diagnostics Limited and the entities it controlled during the period. Gareth Few Director BDO Audit Pty Ltd Sydney, 26 February 2024 BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation. Atomo Diagnostics Limited Contents For the half-year ended 31 December 2023 Statements of profit or loss and other comprehensive income Statements of financial position Statements of changes in equity Statements of cash flows Notes to the financial statements Directors' declaration Independent auditor's review report to the members of Atomo Diagnostics Limited 8 9 10 11 12 19 20 General information The financial statements cover both Atomo Diagnostics Limited as an individual entity and the group consisting of Atomo Diagnostics Limited and the entities it controlled at the end of, or during, the half-year. The financial statements are presented in Australian dollars, which is Atomo Diagnostics Limited's functional and presentation currency. Atomo Diagnostics Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business are: Registered office Principal place of business Level 1 3 - 5 George Street Leichhardt NSW 2040 Level 1 3 - 5 George Street Leichhardt NSW 2040 A description of the nature of the group's operations and its principal activities are included in the directors' report, which is not part of the financial statements. The financial statements were authorised for issue, in accordance with a resolution of directors, on 26 February 2024. The directors have the power to amend and reissue the financial statements. 7 Atomo Diagnostics Limited Statements of profit or loss and other comprehensive income For the half-year ended 31 December 2023 Note Revenue Costs of sales Gross profit 2 Other Income 3 Employee benefits expense Foreign exchange gains/(losses) Depreciation and amortisation expense Research and development expenses Insurance Inventory obsolescence expense IT expenses Occupancy expenses Professional and consulting fee expenses Regulatory expenses Travel expenses Other expenses Finance costs 4 4 Loss before income tax expense Consolidated 31 31 December December 2023 2022 AUD AUD 1,923,371 1,358,966 (1,045,184) (1,117,807) 878,187 241,159 572,253 602,865 (2,333,384) (2,411,789) 11,960 88,635 (833,929) (1,048,008) (108,813) (383,847) (169,585) (218,550) (15,793) (1,045,212) (94,262) (102,332) (9,159) (4,264) (343,384) (420,202) (273,829) (284,675) (73,621) (213,368) (352,972) (535,896) (5,951) (7,966) (3,152,282) (5,743,450) Income tax expense - Loss after income tax expense for the half-year - (3,152,282) (5,743,450) Other comprehensive income Items that may be reclassified subsequently to profit or loss Foreign currency translation (20,640) 48,739 Other comprehensive income for the half-year, net of tax (20,640) 48,739 Total comprehensive income for the half-year (3,172,922) (5,694,711) AUD Cents AUD Cents Basic earnings per share Diluted earnings per share 17 17 (0.50) (0.50) (1.01) (1.01) The above statements of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes 8 Atomo Diagnostics Limited Statements of financial position As at 31 December 2023 Note Consolidated 31 December 30 June 2023 2023 AUD AUD Assets Current assets Cash and cash equivalents Trade and other receivables Inventories Total current assets 5 6 7 6,509,722 1,310,995 1,810,523 9,631,240 6,470,318 1,823,824 2,136,666 10,430,808 8 2,062,824 154,053 3,084,028 5,300,905 2,509,488 233,732 3,299,531 6,042,751 14,932,145 16,473,559 690,641 171,463 245,786 1,107,890 861,631 170,701 277,155 185,074 1,494,561 119,650 119,650 84,176 104,611 188,787 Total liabilities 1,227,540 1,683,348 Net assets 13,704,605 14,790,211 Non-current assets Property, plant and equipment Right-of-use assets Intangible assets Total non-current assets 9 Total assets Liabilities Current liabilities Trade and other payables Lease liabilities Provisions Deferred revenue Total current liabilities Non-current liabilities Lease liabilities Provisions Total non-current liabilities Equity Issued capital Reserves Accumulated losses 10 Total equity 70,086,549 68,036,837 320,089 303,125 (56,702,033) (53,549,751) 13,704,605 14,790,211 The above statements of financial position should be read in conjunction with the accompanying notes 9 Atomo Diagnostics Limited Statements of changes in equity For the half-year ended 31 December 2023 Foreign Currency Translation Reserve AUD Share Based Payment Reserve AUD Accumulated Losses Total equity AUD AUD 68,036,837 (63,078) 866,426 (44,026,471) 24,813,714 - - - (5,743,450) (5,743,450) - 48,739 - Total comprehensive income for the halfyear - 48,739 - Transactions with owners in their capacity as owners: Share-based payments - - 36,605 - 68,036,837 (14,339) 903,031 (49,769,921) 19,155,608 Foreign Currency Translation Reserve AUD Share Based Payment Reserve AUD Accumulated Losses Total equity AUD AUD 68,036,837 (175,408) 478,533 (53,549,751) 14,790,211 - - - (3,152,282) (3,152,282) - (20,640) - Total comprehensive income for the halfyear - (20,640) - Transactions with owners in their capacity as owners: Contributions of equity, net of transaction costs (note 10) Issue of share options 2,049,712 - - 37,604 - Balance at 31 December 2023 70,086,549 (196,048) 516,137 (56,702,033) 13,704,605 Consolidated Balance at 1 July 2022 Issued Capital AUD Loss after income tax expense for the half-year Other comprehensive income for the halfyear, net of tax Balance at 31 December 2022 Consolidated Balance at 1 July 2023 Loss after income tax expense for the half-year Other comprehensive income for the halfyear, net of tax Issued Capital AUD - 48,739 (5,743,450) (5,694,711) - 36,605 (20,640) (3,152,282) (3,172,922) 2,049,712 37,604 The above statements of changes in equity should be read in conjunction with the accompanying notes 10 Atomo Diagnostics Limited Statements of cash flows For the half-year ended 31 December 2023 Note Consolidated 31 31 December December 2023 2022 AUD AUD Cash flows from operating activities Receipts from customers (inclusive of GST) Payments to suppliers and employees (inclusive of GST) 1,935,585 1,803,667 (4,655,750) (5,422,101) Interest received R & D and other government incentives received (2,720,165) (3,618,434) 76,834 26,203 760,965 1,208,555 Net cash used in operating activities 16 (1,882,366) (2,383,676) Cash flows from investing activities Payments for property, plant and equipment Payments for intangibles (2,154) - (77,237) (328,878) Net cash used in investing activities (2,154) (406,115) Cash flows from financing activities Repayment of lease liabilities Proceeds from issue of shares Payments for transaction costs (88,434) 2,259,206 (209,493) (86,396) - Net cash from/(used in) financing activities 1,961,279 (86,396) Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the financial half-year Effects of exchange rate changes on cash and cash equivalents 76,759 (2,876,187) 6,470,318 12,966,400 (37,355) 70,545 Cash and cash equivalents at the end of the financial half-year 5 6,509,722 10,160,758 The above statements of cash flows should be read in conjunction with the accompanying notes 11 Atomo Diagnostics Limited Notes to the financial statements For the half-year ended 31 December 2023 Note 1. Material accounting policy information The principal accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, unless otherwise stated. Basis of preparation These general purpose financial statements for the interim half-year reporting period ended 31 December 2023 have been prepared in accordance with Australian Accounting Standard AASB 134 'Interim Financial Reporting' and the Corporations Act 2001, as appropriate for for-profit oriented entities. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 'Interim Financial Reporting'. These general purpose financial statements do not include all the notes of the type normally included in annual financial statements. Accordingly, these financial statements are to be read in conjunction with the annual report for the year ended 30 June 2023 and any public announcements made by the company during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001. Going Concern During the financial period ended 31 December 2023 the group has reported a loss after tax of $3,152,282 (HY23: $5,743,450) and cash used in operating activities of $1,882,366 (HY23: $2,383,676). As at the 31 December 2023, the group holds cash and cash equivalents of $6,509,722 (FY23: $6,470,318). The Directors have assessed the financial and operating implications of the above matters, including the expected net cash outflows over the next 12 months. Should forecast revenue not be achieved, the group can flexibility manage cash outflows by reducing discretionary expenditure. Based on this consideration, the directors are of the view that the group will be able to pay its debts as and when they fall due for at least 12 months following the date of these financial statements and that it is appropriate for the financial statements to be prepared on the going concern basis. 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. Reclassification of prior year amounts and balances When required by Accounting standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year. Operating segments The Group manages its operations as a single business operation and there are no parts of the Group that qualify as operating segments under AASB 8 Operating Segments. The CEO (Chief Operating Decision Maker or “CODM”) assesses the financial performance of the Group in an integrated basis only and accordingly, the Group is managed on the basis of a single segment, being medical device research and development. Information presented to the CODM on a monthly basis is categorised by type of expenditure. The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, unless otherwise stated. 12 Atomo Diagnostics Limited Notes to the financial statements For the half-year ended 31 December 2023 Note 2. Revenue Consolidated 31 31 December December 2023 2022 AUD AUD Point of care tests Point of care technology Other 1,487,131 406,763 29,477 1,259,470 87,723 11,773 1,923,371 1,358,966 Note 3. Other Income Consolidated 31 31 December December 2023 2022 AUD AUD R&D tax rebate Licence and settlement fees Government grant Interest income 495,419 76,834 530,510 9,552 36,600 26,203 Other Income 572,253 602,865 Note 4. Expenses Consolidated 31 31 December December 2023 2022 Profit / (loss) before income tax from continuing operations includes the following specific expenses: Employee benefits expense Salaries, wages and directors' fees Contributions to defined contribution superannuation funds Equity-settled share-based payments Other employment related expenses Depreciation and amortisation Depreciation expense (Note 8) Amortisation expense (Note 9) Right-of-use assets (2,033,689) (2,085,280) (154,183) (141,819) (37,604) (36,605) (107,908) (148,086) (2,333,384) (2,411,790) (446,955) (706,655) (308,226) (263,364) (78,748) (77,989) (833,929) (1,048,008) Finance Cost Lease interest expense (5,951) (5,951) 13 (7,966) (7,966) Atomo Diagnostics Limited Notes to the financial statements For the half-year ended 31 December 2023 Note 5. Current assets - cash and cash equivalents Consolidated 31 December 30 June 2023 2023 AUD AUD Cash at bank 6,509,722 6,470,318 Note 6. Current assets - trade and other receivables Consolidated 31 December 30 June 2023 2023 AUD AUD Trade receivables Less: Allowance for expected credit losses 564,076 (1,243) 562,833 687,334 (4,050) 683,284 Other receivables R&D tax rebate receivable 345,466 402,696 379,575 760,965 1,310,995 1,823,824 Note 7. Current assets - inventories Consolidated 31 December 30 June 2023 2023 AUD AUD Raw materials - at cost Less: Provision for impairment Work in progress - at cost Finished goods - at cost Less: Provision for impairment Stock in transit - at cost 14 1,778,800 (40,690) 1,738,110 2,021,385 (40,967) 1,980,418 8,911 56,375 115,299 (56,537) 58,762 149,339 (49,466) 99,873 4,740 - 1,810,523 2,136,666 Atomo Diagnostics Limited Notes to the financial statements For the half-year ended 31 December 2023 Note 8. Non-current assets - property, plant and equipment Consolidated 31 December 30 June 2023 2023 AUD AUD Leasehold improvements - at cost Less: Accumulated depreciation Total leasehold improvements 467,504 (151,500) 316,004 468,474 (130,093) 338,381 Plant and equipment - at cost Less: Accumulated depreciation Total plant and equipment 7,127,684 7,126,423 (5,380,864) (4,955,316) 1,746,820 2,171,107 Total property, plant and equipment 2,062,824 2,509,488 Reconciliations Reconciliations of the written down values at the beginning and end of the current financial half-year are set out below: Leasehold improvements AUD Consolidated Plant and equipment AUD Total AUD Balance at 1 July 2023 Additions Exchange differences Depreciation expense 338,381 (970) (21,407) 2,171,107 2,567 (1,306) (425,548) 2,509,488 2,567 (2,276) (446,955) Balance at 31 December 2023 316,004 1,746,820 2,062,824 Note 9. Non-current assets - intangible assets Consolidated 31 December 30 June 2023 2023 AUD A