TruScreen Interim Results to 30 September 2019

NZX Announcement

28 November 2019

TruScreen Unaudited Preliminary Results for the Half Year Ending 30 September 2019
• Reported 37% improvement in bottom line result compared to the corresponding
period last year
• Total revenue of $1.8m
• Strengthening presence in existing markets. China remains the primary focus
• Capital raise of $1.1m completed in July and September 2019
Cervical cancer technology company, TruScreen Limited (NZX:TRU) (the Company) announces its
preliminary unaudited half yearly results for the period ending 30 September 2019. TruScreen
continued to make commercial progress throughout the period.
Unaudited Preliminary Half Yearly Financial Results for the period ended 30 September 2019
(1H 2020)
The Company reported a 37% improvement in bottom line result compared to the corresponding
period last year, with lower sales being offset by a favourable tax offset adjustment relating to
the prior period and a reduction in operating costs.
TruScreen reports a reduced loss of $0.7m (1H 2019: Loss $1.1m).
Total revenue was $1.9m (1H 2019: $2.2m), comprising sales of $0.8m and other income of
$1.1m, being grants for Research & Development of $0.9m and an unrealised foreign exchange
gain of $0.2m.
Net operating cash outflow for 1H 2020 was $1.7m (1H 2019 - $0.8m). This would be significantly
improved when taking into account the late receipt of the Research and Development tax offset
(R&DTO) refund of $1.7m received in November 2019 (IH 2019 includes R&DTO of $1.4m).
Operating costs were 12% lower at $2.2m (1H 2019: $2.5m). The loss for the six months included
a non-cash amortisation and depreciation charge of $0.3m (1H 2019 - $0.27m).
As at 30 September 2019, the Company had cash and cash equivalents of $0.99m, with the
R&DTO receipt of $1.7m subsequent to half year end.

A capital raise of $1.1m was completed in July and September 2019. The funds will be used to
support the Company’s growth to meet the expanding demand from countries where the
Company has already established distribution and sales network, and for developing new
markets.

Operational Performance and update
• WHO recognises TruScreen device
During the period, the TruScreen device was clinically validated with recognition by the World
Health Organisation (WHO). TruScreen was acknowledged in a joint publication between Unitaid,
the World Health Organisation and the Clinton Health Access Initiative, reporting on available
screening and treatment technologies and advantages for its use in low- and middle-income
countries. The report was presented at the 72nd World Health Assembly in Geneva, Switzerland
on 20 May 2019.
• China screening results exceed expectations
China remains the Company’s focus (400m women of screening age) with a number of important
initiatives underway during the half year. TruScreen was selected for major screening
programmes and for installation in both public and private hospitals and clinics. TruScreen’s
large-scale evaluation programme with China’s Obstetrics and Gynaecology Association (COGA)
is progressing well, with Hunan being the first province in China to complete and report on their
participation in the project. Interim screening results from 2,065 women across seven hospitals
in Hunan, reported results that exceeded expectations. The Company looks forward to updating
the market on results from other provinces when available.
• TruScreen installation on “Two Cancer Centres” progressing well
Sixteen of the planned 50 “Two Cancer Centres” are established and installed with TruScreen.
During FY19, TruScreen was selected as the primary screening solution for the high-tech,
privately owned and operated clinics, which provide a ‘one-stop’ screening diagnosis and
treatment for breast and cervical cancers to the growing middle class of China.
• CDC data analysis under way
The Women’s and Children’s Division of the Centre for Disease Control (CDC) in China is currently
analysing clinical data from the large-scale evaluation that was completed in late FY2019. This
evaluation initially included the screening of over 12,000 women throughout China and has been
extended to include a further 5,000 patients, to enable the TruScreen screening technology to be
included in the CDC’s screening guidelines for the 3,000 hospitals under its management.
• Vietnam pilot programme secured
In other markets, the Company is reporting good progress, securing approval in Vietnam to
conduct a pilot cervical cancer programme. The Hanoi Obstetrics and Gynaecology Hospital –
Vietnam’s prestigious government hospital – has commenced a pilot cervical cancer screening
programme as approved by the Vietnam Ministry of Health’s Professional Advisory Committee.

The stage 1 programme is to screen 1,000 women and stage 2 is for a further screening of 5,000
patients.
• $1.1m capital raise successfully completed
The Company successfully raised $1.1 million in July and September 2019. Together with the
receipt of research and development tax offset of approximately $1.7 million in November 2019
the funds will fund working capital as the business grows to meet the expanding demand for
TruScreen screening devices.
Subsequent to 30 September 2019, Mr. Martin Dillon resigned as CEO, effective 31 December
2019. A recruitment process has commenced for an experienced CEO to lead the company to its
next phase of growth. Mr Dillon will continue to be associated with TruScreen as a consultant.
Mr Robert Hunter, a long serving non-executive director of the Company stepped down from the
board effective 31 October 2019.
Operational Update
✓ China screening programmes and trial underway
✓ Screening results from COGA study in Hunan, China exceeded expectations
✓ WHO recognises TruScreen
✓ WHO draft cervical cancer elimination strategy opens up TruScreen’s market opportunity
✓ Vietnam pilot cervical cancer screening programme secured
✓ Successful $1.1m capital raising completed in July and September 2019
✓ Increase in SUS consumable sales

Outlook
Looking ahead, the Company’s distribution network will continue to drive the sales growth
strategy. This will also improve the wellbeing of women in developing markets with the latest
real-time technology in cervical cancer screening for accurate detection of pre-cancerous and
cancer cells.
With the support and endorsement from Key Opinion Leaders and government adoption of major
screening programmes in the public health system, the Company will continue to widen its
market presence.

The Company continues to improve the efficacy of the TruScreen device with improved
performance relative to alternative lab-based screening methodologies.

TruScreen has also commenced an Australian Securities Exchange listing process for 1H Calendar
2020.

Commenting on the outlook, TruScreen Chair Mr Tony Ho said, “the WHO strategy to eliminate
cervical cancer worldwide and the inclusion of TruScreen’s technology in the WHO landscape
report to member countries in May 2019, opens up a favourable macro environment and market
opportunity for the Company’s screening technology. Market awareness of the benefits of
TruScreen is growing and would lead to increasing adoption and commercial sales around the
world”.

-
- ENDS -


For more information, visit www.TruScreen.com or contact:

TruScreen
Tony Ho
Chairman
tonyho@truscreen.com

TruScreen
Guy Robertson
CFO
guyrobertson@truscreen.com
Investors
Investor Relations
Phone: +61 2 9237 2801
TruScreen@we-buchan.com

About TruScreen:
TruScreen is a Cervical Cancer Screening Device which
offers the latest technology in cervical screening,
providing real-time, accurate detection of pre-
cancerous and cancerous cervical cells to help improve
the health and well-being of women around the world.
TruScreen’s real-time cervical cancer technology utilises
a digital wand which is placed on the surface of the cervix
to measure electrical and optical signals from the
surrounding tissues. A sophisticated proprietary algorithm
framework is utilised to detect pre-cancerous change, or
cervical intraepithelial neoplasia (CIN), by optical and
electrical measurement of cervical tissue.
TruScreen offers an alternative approach to cervical screening, resolving many of the ongoing
issues with Pap tests, including failed samples, poor patient follow-up, patient discomfort and
the need for supporting laboratory infrastructures. As such, TruScreen’s target market is lower-
and middle-income countries (LMICs) where no large-scale cervical cancer screening programs
and infrastructure are in place. These LMICs include China, Vietnam, Russia, Mexico, India and
countries in Africa. TruScreen’s cervical cancer screening device is CE- certified for use
throughout Europe and CFDA approved for use in China. Under the proposed WHO global
strategy for cervical cancer elimination, the global market potential for TruScreen is significant.

For more information, visit our website at www.truscreen.com. Watch our video on TruScreen:
http://truscreen.com/truscreen-the-company/truscreen- ultra-video/

---

Appendix 1
This document relates to Truscreen Limited’s (“the Company”) unaudited financial results for the
six month period ended 30 September 2019, released to the NZX on 28 November 2019.

Results for announcement to the market
Name of issuer Truscreen Limited
Reporting Period 6 months to 30 September 2019
Previous Reporting Period 6 months to 30 September 2018
Currency NZ$

Amount (000s) Percentage
change
6 Months to 30
September
2018
6 months to 30
September
2019

Revenue from continuing
operations
1,399 762 (46%)
Total Revenue 2,218 1,873 (16%)
Net loss from continuing
operations

(1,123)

(709)

37%
Total net loss (1,123) (709) 37%

Interim/Final Dividend
Amount per Quoted Equity
Security
The Company does not propose to pay a
dividend
Imputed amount per Quoted
Equity Security
Not applicable
Record Date Not Applicable
Dividend Payment Date Not Applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.0151 $0.0142
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
For commentary on the results please refer to
the commentary on the related NZX release.
Authority for this announcement
Name of person

authorised
to make this announcement
Guy Robertson (Chief Financial Officer)
Contact person for this
announcement
Guy Robertson (Chief Financial Officer)

Contact phone number + 61 407 983 270
Contact email address guyrobertson@truscreen.com
Date of release through MAP

28 November 2019


The information below is required by Appendix 1 of the NZX Listing Rules:

1.1 Details of the reporting period and the previous reporting period

The reporting period is for the six month period ended 30 September 2019 (“current year”) with
the comparative period being for the six month period ended 30 September 2018 (“previous
year”).

1.2 Information prescribed by NZX

Refer to “Results for Announcement to the Market”.

1.3 The following information:

(a) A statement of financial performance
Refer to the Interim Unaudited Consolidated Financial Statements for the six month period
ended 30 September 2019.

(b) A statement of financial position
Refer to the Interim Unaudited Consolidated Financial Statements for the six month period
ended 30 September 2019.

(c) A statement of cash flows
Refer to the Interim Unaudited Consolidated Financial Statements for the six month period
ended 30 September 2019.

(d) Details of dividends or distributions
The Company does not propose to pay dividends to shareholders.

(e) Details of any dividend or distribution reinvestment plans in operation and the last
date for the receipt of an election notice for participation in any dividend or distribution
reinvestment plan
The Company has no dividend reinvestment plan.

(f) A statement of changes in equity
Refer to the Interim Unaudited Consolidated Financial Statements for the six month period
ended 30 September 2019.

(g) Net tangible assets per security
Net tangible assets per share at 30 September 2019 was 1.51 cents (30 September 2018: 1.42
cents per share).

(h) Details of entities over which control has been gained or lost during the period
There are no other entities over which control has been gained or lost during the period.

(i) Details of associates and joint ventures
None.

(j) Any other significant information
Nil.

(k) Commentary on result
For commentary on the result please refer to the commentary in the related NZX release and
the attached unaudited Preliminary Consolidated Financial Statements for the six month period
ended 30 September 2019.

(l) Unaudited Financial Statements
The Interim Consolidated Financial Statements for the six month period ended 30 September
2019 are unaudited.

(m) Any major changes or trends in the business
Refer to the commentary in the related NZX release.

(n) Unrealised Gains
There are no unrealised gains resulting from the revaluation of assets of the Company or its
subsidiaries, or any unrealised net changes in values or development margins of investment
assets included as separate items after profit before extraordinary items.

2.1 Basis of preparation
These financial statements have been prepared in accordance with New Zealand Generally
Accepted Accounting Practice (NZ GAAP). They comply with New Zealand equivalents to
International Financial Reporting Standards (NZ IFRS), International Financial Reporting
Standards (IFRS) and other applicable New Zealand Financial Reporting Standards, as
appropriate for profit-oriented entities. They also comply with International Financial Reporting
Standards.

2.2 Accounting
Refer to Statement of Accounting Policies in the Interim Consolidated Financial Statements for
the six month period ended 30 September 2019.

2.3 Changes in accounting policies
The accounting policies used are consistent with those used to prepare the Consolidated
Financial Statements for the year ended 31 March 2019. The Company has adopted the new
accounting standard for Leasing NZ IFRS 16 during the period.

2.4 Audit Report
The Interim Consolidated Financial Statements for the six month period ended 30 September
2019 have not been audited.

2.5 Additional information
Not applicable.

The Interim Consolidated Financial Statements were approved by the Board of Directors on 27
November 2019.


Anthony Ho
Chairman

---

TRUSCREEN LIMITED

Interim Unaudited Financial Statements

For the Six Months Ended 30 September 2019

TRUSCREEN LIMITED





Table of contents


Page


Operations report 1
Consolidated statement of profit or loss and other comprehensive income 3
Consolidated statement of financial position 4
Consolidated statement of changes in equity 5
Consolidated statement of cash flows 6
Notes to the interim unaudited financial statements 7

TRUSCREEN LIMITED
The accompanying notes form part of these interim financial statements.
1
OPERATIONS REPORT
Cervical cancer technology company, TruScreen Limited (NZX: TRU) (Company), is pleased to provide
the unaudited financial results for the six months to 30 September 2019 (1H 2020).
The Company reported a 37% improvement in bottom line result compared to the corresponding period last
year, with lower sales being offset by a favourable tax offset adjustment relating to the prior period and a
reduction in operating costs.
TruScreen reports a reduced loss of $0.7m for the six months to 30 September 2019 (1H 2019: Loss $1.1m).
Total revenue was $1.9m (1H 2019: $2.2m), comprising sale of goods of $0.8m and other income of $1.1m,
being a research & development tax offset of $0.9m and an unrealised foreign exchange gain of $0.2m.
Net operating cash outflow was $1.7m (1H 2019 - $0.8m). This would be significantly improved when
taking into account the research and development tax offset refund (R&DTO) received in November 2019
of ~$1.7 million (1H 2019 includes a R&DTO receipt of $1.4m). Operating costs were 12% lower in the
six months at $2.2m (1H 2019: $2.5m). The loss for the six months included a non-cash amortisation and
depreciation charge of $0.3m (1H 2019 - $0.28m).
As at 30 September 2019, the Company had cash and cash equivalents of $0.99m. A capital raise of $1m
was completed in July 2019.
Half Year Commentary
TruScreen has continued to make significant commercial progress in the six months to 30 September 2019.
During the period, the TruScreen device was clinically validated with recognition by the World Health
Organisation (WHO). TruScreen was acknowledged in a joint publication between Unitaid, the World
Health Organisation and the Clinton Health Access Initiative, reporting on available screening and
treatment technologies and advantages for its use in low- and middle-income countries. The report was
presented at the 72
nd
World Health Assembly in Geneva, Switzerland on 20 May 2019.
China remains the Company’s focus with a number of important initiatives underway during the half year.
TruScreen was selected for major screening programmes and for installation in both public and private
hospitals and clinics. TruScreen’s large-scale evaluation programme with China’s Obstetrics and
Gynaecology Association (COGA) is progressing well, with Hunan being the first province in China to
complete and report on their participation in the project. Interim screening results from 2,065 women across
seven hospitals in Hunan, reported results that exceeded expectations. The Company looks forward to
updating the market on results from other provinces when available.
Sixteen of the planned 50 “Two Cancer Centres” are established and installed with TruScreen. During
FY2019, TruScreen was selected as the primary screening solution for the high-tech, privately owned and
operated clinics, which provide a ‘one-stop’ screening diagnosis and treatment for breast and cervical
cancers to the growing middle class of China.
The Women’s and Children’s Division of the Centre for Disease Control (CDC) in China is currently
analysing clinical data from the large-scale evaluation completed in late FY2019. This evaluation initially
included the screening of over 12,000 women throughout China and has been extended to include a further
5,000 patients, to enable the TruScreen screening technology to be included in the CDC’s screening
guidelines for the 3,000 hospitals under its management.
In other markets, the Company is reporting good progress, securing approval in Vietnam to conduct a pilot
cervical cancer programme. The Hanoi Obstetrics and Gynaecology Hospital – Vietnam’s prestigious

TRUSCREEN LIMITED
The accompanying notes form part of these interim financial statements.
2
government hospital has commenced a pilot cervical cancer screening programme as approved by the
Vietnam Ministry of Health’s Professional Advisory Committee. The stage 1 programme is to screen 1,000
women and stage 2 is for a further screening of 5,000 patients.
The Company successfully raised $1.1 million in new capital in July and September 2019, issuing
10,677,363 new shares at 10.6 cents per share, with a free attaching option exercisable at 13 cents per share
before 12 July 2021. These funds, together with the receipt of research and development tax offset of
approximately $1.7 million in November 2019, will fund working capital as the business grows to meet the
expanding demand for TruScreen screening devices.
Research and Development
The Company continues to improve the efficacy of the TruScreen device with improved performance
relative to alternative lab-based screening methodologies. There is also a focus on lowering our
manufacturing costs.
Outlook
The WHO strategy to eliminate cervical cancer worldwide and the inclusion of TruScreen’s technology in
the WHO landscape report to member countries in May 2019, opens up a favourable macro environment
and market opportunity for the Company’s screening technology.
Market awareness of the benefits of TruScreen is growing and would lead to increasing adoption and
commercial sales around the world.
Highlights for HY19:
• China screening programmes and trial underway
• Screening results from COGA study in Hunan, China exceeded expectations
• Increase in SUS consumable sales
• WHO recognises TruScreen
• WHO draft cervical cancer elimination strategy opens up TruScreen’s market opportunity
• Vietnam pilot cervical cancer screening programme secured
• Successful $1m capital raising completed in July 2019
Corporate
Subsequent to 30 September 2019, Mr. Martin Dillon resigned as CEO, effective 31 December 2019. A
recruitment process has commenced for an experienced CEO to lead the company to its next phase of
growth. Mr Dillon will continue to be associated with TruScreen as a consultant.
Mr Robert Hunter, a long serving non-executive director of the Company stepped down from the board
effective 1 November 2019.
The Company issued 9 million options to directors, exercisable at 15 cents per share before 27 August 2022
as approved by shareholders at the Annual General Meeting on 27 August 2019.

Anthony Ho
Chairman
28 November 2019

TRUSCREEN LIMITED
The accompanying notes form part of these interim financial statements.
3


CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2019


Unaudited
for the six
months
ended 30
September
2019

Unaudited
for the six
months
ended 30
September
2018

Audited
for the year
ended 31 March
2019
Note $

$ $
Revenue from the sale of goods 762,110

1,398,987 1,862,949
Other income 4 1,110,993

819,209 1,241,202
Changes in inventories 3,011

296,946

27,375
Purchases of inventory (366,424)

(1,108,536)

(1,362,212)
Employee benefit expenses and directors’ fees (715,432)

(590,641)

(1,240,646)
Administration (222,223)

(562,001)

(674,734)
Research expenses 4 (524,823)

(643,135)

(1,777,972)
Travel (72,047)

(35,189)

(65,829)
Marketing & product approvals (134,119)

(300,647)

(290,246)
Insurance (48,445)

(58,450)

(99,268)
Shareholder relations & services (136,570)

(35,173)

(91,538)
Foreign exchange gain/(loss) 4 -

-

(316,027)
Amortisation & depreciation 4 (304,886)

(276,359)

(565,781)
Finance costs (60,319)

(27,979)

(27,727)
Loss before income tax (709,174)

(1,122,968)

(3,380,454)
Income tax expense -

-

-
Loss for the period after income tax (709,174)

(1,122,968)

(3,380,454)
Other comprehensive income




Item that may be reclassified subsequently to
profit or loss




Exchange (loss)/gain on translating foreign
subsidiary operations (145,940)

(31,815)

102,179
Other comprehensive (loss)/profit for the period

(145,940) (31,815) 102,179
Total comprehensive (loss)/profit for the period

(855,114) (1,154,783) (3,278,275)
Basic and diluted losses (cents per share) (0.32)

(0.6)

(1,56)

TRUSCREEN LIMITED
The accompanying notes form part of these interim financial statements.
4
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2019


Unaudited
30 September
2019

Unaudited
30 September
2018

Audited
31 March
2019

Note $ $ $
CURRENT ASSETS


Cash and cash equivalents 990,821 1,477,876 1,737,775
Trade receivables 480,947 622,204 187,504
Other receivables 1,987,743 407,585 1,070,517
Loan receivable 75,000 75,000 75,000
Goods and services taxes recoverable 34,224 86,209 30,335
Inventories 797,985 698,130 782,026
Other assets – prepayments 181,395 255,566 21,552
TOTAL CURRENT ASSETS 4,548,115 3,622,570 3,904,709

NON-CURRENT ASSETS
Plant and equipment 345,314 340,165 379,993
Intangible assets 8,102,857 8,907,487 8,261,063
TOTAL NON-CURRENT ASSETS 8,448,171 9,247,652 8,641,056

TOTAL ASSETS 12,996,286 12,870,222 12,545,765

CURRENT LIABILITIES
Trade and other payables 636,798 817,023 437,031
Borrowings 626,501 - 626,501
Employee benefits 138,895 139,850 109,925
TOTAL CURRENT LIABILITIES 1,402,194 956,873
1,173,457

NON-CURRENT LIABILITIES

Employee benefits 57,515 25,547
51,499
TOTAL NON-CURRENT LIABILITIES 57,515 25,547
51,499

TOTAL LIABILITIES 1,459,709 982,420 1,224,956

NET ASSETS 11,536,577 11,887,802 11,320,809

EQUITY
Issued capital 7 27,492,050 24,864,669 26,421,168
Foreign currency translation reserve (600,736) (588,790) (454,796)
Accumulated losses (15,354,737) (12,388,077) (14,645,563)
Total Equity 11,536,577 11,887,802 11,320,809

TRUSCREEN LIMITED
The accompanying notes form part of these interim financial statements.
5
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2019



Share
Capital
Accumulated
Losses
Foreign
Currency
Translation
Reserve
Option
Reserve Total

Note $

$

$

$

$

















Balance at 31 March 2018
(Audited)

23,433,996 (11,265,109)
(556,975)
3,970 11,615,882
Comprehensive income




Loss for the period ended 30
September 2018

- (1,122,968) - - (1,122,968)
Other comprehensive loss
for the period
- - (31,815) - (31,815)
Total comprehensive loss
for the period (unaudited)

- (1,122,968) (31,815) - (1,154,783)

Transactions with owners







Issue of ordinary shares 7
1,430,673 - - (3,970) 1,426,703
Total transactions with
owners
1,430,673 - - (3,970) 1,426,703
Balance at 30 September
2018 (Unaudited)

24,864,669

(12,388,077)

(588,790)

-

11,887,802

Balance at 31 March 2019
(Audited)

26,421,168 (14,645,563)
(454,796)
- 11,320,809
Comprehensive income




Loss for the period ended 30
September 2019

- (709,174) - - (709,174)
Other comprehensive loss
for the period
- - (145,940) - (145,940)
Total comprehensive loss
for the period (unaudited)

- (709,174) (145,940) - (855,114)

Transactions with owners







Issue of ordinary shares 7
1,070,882 - - - 1,070,882
Total transactions with
owners
1,070,882 - - - 1,070,882
Balance at 30 September
2019 (Unaudited)

27,492,050

(15,354,737)

(600,736)

-

11,536,347

TRUSCREEN LIMITED
The accompanying notes form part of these interim financial statements.
6
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2019


Unaudited
for the six
months
ended 30
September
2019

Unaudited
for the six
months
ended 30
September
2018

Audited for
the year
ended 31
March 2019

Note $

$

$
CASH FLOW FROM OPERATING
ACTIVITIES




Cash receipts from customers 506,468 752,769
1,675,445
Cash paid to suppliers and employees (2,179,539) (2,993,506)
(5,810,335)
Cash received from 45% refundable tax offset - 1,445,793
1,472,566
Interest paid (60,317) (27,979)
(27,644)
Interest received 3,272 4,127
11,647
Net cash used in operating activities 8
(1,730,116) (818,796) (2,678,321)

CASH FLOW FROM INVESTING
ACTIVITIES






Purchase of plant and equipment - (342,485) (410,031)
Net cash used in investing activities - (342,485) (410,031)

CASH FLOW FROM FINANCING
ACTIVITIES





Proceeds from issue of shares 1,131,800 1,515,000 3,075,470
Share issue costs (60,918) (88,297) (88,298)
Proceeds from borrowings - - 626,501

Net cash provided by financing activities

1,070,882 1,426,703 3,613,673

Net increase/(decrease) in cash and cash
equivalents

(659,234) 265,422 525,321
Cash and cash equivalents at beginning of period 1,737,775 1,212,454
1,212,454
Effect of foreign exchange adjustment on cash
balances

(87,720) -

-
Cash and cash equivalents at end of period 990,821 1,477,876 1,737,775

TRUSCREEN LIMITED
NOTES TO THE UNAUDITED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2019


7
1. REPORTING ENTITY
TruScreen Limited (the “Company”) is a Tier 1 for-profit listed incorporated public company and is an
issuer on the New Zealand Stock Exchange (“NZX”). The Company is a limited liability company
incorporated and domiciled in New Zealand and registered under the Companies Act 1993. The NZX
ticker code for TruScreen is TRU. TruScreen is an FMC reporting entity for the purposes of the Financial
Reporting Act 2013 and the Financial Markets Conduct Act 2013.
The Group’s principal activity relates to the research & development and manufacture of cancer detection
devices and systems.
The consolidated unaudited interim financial statements presented for the six months ended 30 September
2019 are those of Truscreen Limited and its subsidiaries (the “Group”). References to “Truscreen” are used
to refer both to the Group and Truscreen Limited (the “Company”).
These consolidated unaudited interim financial statements were authorised for issue by the Board of
Directors on 27 November 2019.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PREPARATION
These financial statements are unaudited and have been prepared in accordance with New Zealand
Generally Accepted Accounting Practice (“NZ GAAP”) and part 7 of the Financial Markets Conduct Act
2013. The financial statements comply with NZ IAS 34: Interim Financial Reporting and International
Accounting Standards IAS 34: Interim Financial Reporting.
The consolidated unaudited interim financial statements have been prepared in New Zealand dollars, which
is the presentation currency, with the New Zealand dollar and the Australian dollar being the functional
currently of the New Zealand parent company and the Australian subsidiary respectively. These financial
statements do not include all the information required for full financial statements and consequently should
be read in conjunction with the Group’s financial statements for the year ended 31 March 2019.
The same accounting policies have been followed in these financial statements as were applied in the
preparation of the Group’s audited financial statements for the year ended 31 March 2019, with the
inception of NZ IFRS 16: Leases as outlined below.
The consolidated unaudited interim financial statements are prepared on the basis of historical cost, except
where otherwise identified.
3. ADOPTION OF NEW AND REVISED STANDARDS
NZ IFRS 16: LEASES
General impact of the new NZ IFRS 16
NZ IFRS 16 provides a comprehensive model for the identification of lease arrangements and their
treatment in the financial statements for both lessors and lessees. NZ IFRS 16 supersedes the previous lease
guidance including NZ IAS 17 Leases and the related interpretations when it became effective for
accounting periods beginning on or after 1 January 2019.
The date of initial application of NZ IFRS 16 for the Group was 1 April 2019. The Group has chosen not
to adopt the full retrospective application of NZ IFRS 16 in accordance with NZ IFRS 16:C5(a), as the
Group only has short term leases.
For short-term leases (lease term of 12 months or less), the Group has opted to recognise a lease expense
on a straight-line basis as permitted by NZ IFRS 16. This expense is presented within administrative
expenses in the consolidated income statement.

TRUSCREEN LIMITED
NOTES TO THE UNAUDITED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2019

8
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
When preparing the interim financial statements, management is required to make judgements, estimates
and assumptions about carrying values of assets and liabilities that are not readily apparent from other
sources. The estimates and associated assumptions are based on experience and other factors that are
believed to be reasonable under the circumstances. Actual results may differ from the estimates, judgements
and assumptions made by management. Estimates and underlying assumptions are reviewed on an on-going
basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and
in any future periods affected. Information about significant areas of estimation uncertainty and critical
judgements in applying accounting policies that have the most significant effect on the amounts recognised
in the financial statements can be found in the previous annual report.
SEASONALITY
Operations are not subject to seasonal influences.
4. SIGNIFICANT TRANSACTIONS AFFECTING NET LOSS
Significant transactions affecting net loss
The following significant items affecting the unaudited loss for the period are highlighted below because
of their size:
Unaudited for
the six months
ended 30
September
2019
Unaudited for
the six months
ended 30
September
2018
Audited for
the year
ended 31
March 2019
$ $ $
Other income
Research and development tax offset¹
938,008 514,908 1,229,121
Interest
3,204 4,127 11,854
Foreign exchange gains - unrealised
169,781 300,174 227
Total other income
1,110,993

819,209

1,241,202
Expense

Amortisation and depreciation
(304,886) (276,359) (565,781)
Foreign exchange loss - unrealised
- - (316,027)
Research & development costs
(524,823) (643,135) (1,777,972)
¹Included in the research and development tax offset is an amount of $587,625 relating to the prior period.
See note 10.
Ongoing Research & development is being conducted in the following areas:
• Clinical trials;
• Software & firmware improvements incorporated from feedback on prototypes to improve usability;
• Manufacturing processes of the electrical and optical assembly;
• Changes and improvements to the electrical and optical assembly; and
• Further work on developing and testing the algorithm.

TRUSCREEN LIMITED
NOTES TO THE UNAUDITED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2019

9
5. ADMINSTRATION AND OTHER OPERATING EXPENSES
The following commentary explains the improvement in administration and operating expenses over the
previous half year:
Administration – principally a decrease in accounting and finance support team costs.
Marketing and product approvals – principally commission on a sale in the previous year. Current policy
is that the distributor earns commission direct from the customer on on-sale.
Shareholder relations and services costs include preparatory work associated with a potential dual listing
on the Australian Securities Exchange.

6. OPERATING SEGMENTS
The Group operates in one operating segment. It owns the rights to the Truscreen Cervical Cancer Screening
System. The system comprises a medical device and process designed to detect the presence in real time of
precancerous and cancerous tissue on the cervix.
The Group is in the process of obtaining further regulatory approvals. On the granting of these approvals
the Group anticipates an increase in distribution and revenue. It is anticipated revenues will be obtained
largely from Asia, Europe, Central and South America. The limited revenues to date have been obtained in
anticipation of these approvals. These revenues were from sales to the Company’s distributors (indirect
channel of distribution).
Two major customers each contributed more than 10% of the Group’s revenue in the six months to 30
September 2019 (2018: two customers):
• One customer provided revenue of $392,826 (51%); and
• One customer provided revenue of $279,431 (36%).
No additional disclosure is required in the interim financial statements as the Group has one reportable
segment.

7. SHARE CAPITAL
No. $
Balance as at 30 September 2018 209,445,477 24,864,669

Balance as at 31 March 2019 216,857,441 26,421,168
Share placement 10,677,363 1,131,800
Share issue costs - (60,918)
Balance as at 30 September 2019 227,534,804 27,492,050

TRUSCREEN LIMITED
NOTES TO THE UNAUDITED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2019

10
8. RECONCILIATION OF CASH FLOW FROM OPERATING ACTIVITIES

Unaudited
for the six
months
ended 30
September
2019
Unaudited
for the six
months
ended 30
September
2018
Audited for
the year
ended 31
March 2019
$ $ $
Reconciliation of cash flow from operations with
loss after income tax





Loss for the period (709,174)

(1,122,968)

(3,380,454)
Adjusted for:
Amortisation and depreciation 304,886 276,359 565,782
Exchange difference arising from translating loss
items at the date of transaction and translating cash
balances at period end rates (170,220) (260,992)

253,750
Operating cash flows before working capital changes (574,508) (1,107,601) (2,560,922)
(Increase)/decrease in trade receivables (293,443) (622,204) (187,504)
(Increase)/decrease in other receivables - (24,014) 243,938
(Increase)/decrease in goods and services taxes
recoverable (3,889)

69,640

125,514
(Increase)/decrease in prepayments (159,843) (200,010) 34,004
(Increase)/decrease in inventory (15,959) (296,945) (380,841)
Increase/(decrease) in research and development
refundable tax offset (917,226)

930,885

-
Increase/(decrease) in trade and other payables 199,766 397,532 17,543
Increase in employee liabilities 34,986 33,921 29,947
Net cash outflow from operating activities
(1,730,116)

(818,796)

(2,678,321)

TRUSCREEN LIMITED
NOTES TO THE UNAUDITED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2019

11
9. NET TANGIBLE ASSETS PER SHARE


Unaudited
as at
30 September
2019
Unaudited
as at
30 September
2018
Audited
as at
31 March
2019
Net tangible assets ($) 3,433,720 2,980,315 3,059,746
Shares on issue at the end of period 227,534,804 209,445,477 216,857,441
Net tangible assets per share (cents per
share)

1.51

1.42

1.41

10. CONTINGENT LIABILITIES
There are no contingent liabilities in this or the previous reporting period.

11. EVENTS SUBSEQUENT TO END OF THE INTERIM PERIOD
In November 2019 the Company received the research and development tax offset (Australian Tax Office)
in the amount of $1,658,143. Of this amount $587,625 relates to an additional claim in the 2019 year and
is included in the current year research and development tax offset amount.
The Company had financed $626,501 of the claim and this has been repaid in November 2019.
Except for the above and the Corporate section in the Half Yearly Operations Report, there have been no
other events since 30 September 2019 which would have a material effect on the Group’s unaudited interim
financial statements for the 6 months ended 30 September 2019.