Truscreen Preliminary Results For FY2022

TRUSCREEN GROUP LIMITED
1


Preliminary Final Report
Consolidated Financial Statements - Unaudited

Currency is New Zealand Dollars

For the Year Ended 31 March 2022


Contents
Summary of Profit or Loss and Other Comprehensive Income 2
Statement of Financial Position 3
Statement of Changes in Equity 4
Statement of Cash Flows 5
Notes to the Financial Statements 6

TRUSCREEN GROUP LIMITED
2

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2022
Note 2022
2021

$

$
Revenue from the sale of goods
3
1,678,465 1,132,641
Other income
3
973,914 843,274



Cost of inventory used

(1,155,725) (732,603)
Employee benefit expenses and directors’ fees

(991,911) (1,180,425)
Administration

(347,807) (403,638)
Research and development expenses

(1,507,543) (1,288,197)
Rent

(54,139) (40,876)
Travel

(4,969) (4,192)
Marketing & product approvals

(708,010) (618,281)
Insurance

(116,191) (85,196)
Shareholder relations & services

(117,877) (295,163)
Foreign exchange loss

- (136,200)
Amortisation & depreciation

(592,715) (646,598)
Write off of obsolete inventory

(181,217) -
Provision for impairment plant and equipment

(198,847) -
Provision for impairment of non-current assets

(4,423,287) -
Finance costs

- (34,556)
Share based payments

(144,813) -
Loss before income tax

(7,892,672) (3,490,010)
Income tax expense

- -
Loss for the period

(7,892,672) (3,490,010)
Other comprehensive income


Item that may be reclassified subsequently to
profit or loss


Exchange differences on translating foreign
subsidiary operations


(166,281) 500,136
Other comprehensive (loss)/income for the period

(166,281)

500,136
Total comprehensive loss for the period

(8,058,953)

(2,989,874)



Basic and diluted loss per share (cents)
4
(2.18) (1.08)

TRUSCREEN GROUP LIMITED
3
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2022
Note 2022 2021
$ $
CURRENT ASSETS
Cash and cash equivalents 2,797,004 5,255,074
Other receivables 601,554 558,485
Trade receivables 275,447 -
Goods and services tax recoverable 36,782 44,233
Inventories 496,887 732,574
Other current assets – prepayments 179,270 105,931
TOTAL CURRENT ASSETS 4,386,944 6,696,297
NON-CURRENT ASSETS
Plant and equipment - 307,092
Intangible assets - 5,001,302
TOTAL NON-CURRENT ASSETS - 5,308,394
TOTAL ASSETS 4,386,944 12,004,691

CURRENT LIABILITIES
Trade and other payables 807,374 452,594
Provision for employee benefits 140,385 205,373
TOTAL CURRENT LIABILITIES 947,759 657,967
NON-CURRENT LIABILITIES
Provision for employee benefits 44,134 37,633
TOTAL NON-CURRENT LIABILITIES 44,134 37,633
TOTAL LIABILITIES 991,893 695,600
NET ASSETS 3,395,051 11,309,191

EQUITY
Issued capital 5 34,550,048 34,550,048
Share option reserve 5 450,813 306,000
Foreign currency translation reserve (380,844) (214,563)
Accumulated losses (31,224,966) (23,332,294)
Total Equity 3,395,051 11,309,191

TRUSCREEN GROUP LIMITED
4

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2022



Share
Capital
Accumulated
Losses
Foreign
Currency
Translation
Reserve
Option
Reserve

Total

$

$
$ $
$



Balance at 1 April 2021
34,550,048 (23,332,294)
(214,563)
306,000 11,309,191
Loss for the year to 31
March 2022

- (7,892,672) - - (7,892,672)
Exchange differences on
translating foreign
subsidiary operations


- - (166,281) - (166,281)
Total comprehensive
income for the year

- (7,892,672) (166,281) - (8,058,953)
Transactions with owners, in their capacity as owners


Share based payments
- -
-

144,813
144,813
Total transactions with
owners

- -
-

144,813
144,813
Balance at 31 March 2022
34,550,048 (31,224,966)
(380,844)
450,813 3,395,051



Note
Share
Capital
Accumulated
Losses
Foreign
Currency
Translation
Reserve
Option
Reserve

Total

$

$
$ $
$



Balance at 1 April 2020
27,492,050 (19,842,284)
(714,699)
306,000 7,241,067
Loss for the year to 31
March 2021

- (3,490,010) - - (3,490,010)
Exchange differences on
translating foreign
subsidiary operations

- - 500,136 - 500,136
Total comprehensive
income for the year

- (3,490,010) 500,136 - (2,989,874)
Transactions with owners, in their capacity as owners


Issue of shares
5 7,489,968 -
-

-
7,489,968
Share issue cost
5 (431,970) -
-
- (431,970)
Total transactions with
owners

7,057,998 -


-
7,057,998
Balance at 31 March 2021
34,550,048 (23,332,294)
(214,563)
306,000 11,309,191

TRUSCREEN GROUP LIMITED
5

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2022


Note 2022 2021

$

$
CASH FLOW FROM OPERATING ACTIVITIES

Cash received from customers 1,434,264 1,167,975
Cash paid to suppliers and employees including GST (4,694,522) (4,207,886)
Cash received from research and development tax
offset

620,888 689,167
Government assistance 231,125 268,717
Short-term lease payments not included in lease
liability

(123,775) (73,978)
Interest paid - (35,146)
Interest received 323 1,820
Net cash from operating activities 6 (2,531,697) (2,189,331)

CASH FLOW TO INVESTING ACTIVITIES
Purchase of plant and equipment (2,662) (97,524)
Net cash to investing activities (2,662) (97,524)

CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from issue of shares - 7,489,968
Share issue costs - (431,970)
Repayment of borrowings - (410,280)
Net cash from financing activities - 6,647,718

Net (decrease)/increase in cash and cash
equivalents

(2,534,359) 4,360,863
Cash and cash equivalents at the beginning of the
financial year

5,255,074 1,024,153
Effects of exchange rate changes on cash and cash
equivalents

76,289 (129,942)
Cash and cash equivalents at the end of the
financial year

2,797,004 5,255,074

TRUSCREEN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022


6
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
General Information
These consolidated financial statements and notes represent those of Truscreen Group Limited and its
subsidiaries (the “Group”). References to “Truscreen” is used to refer to Truscreen Group Limited (the
“Company”).
The parent company, Truscreen Group Limited, is the ultimate legal parent company of the Group and is a
limited liability company incorporated and domiciled in New Zealand. It is registered under the Companies
Act 1993. Truscreen is listed on the NZX and on the ASX as an ASX Foreign Exempt Listing.
Truscreen
is a FMC reporting entity under Part 7 of the Financial Markets Conduct Act 2013.
The registered office of the Company is Level 6 Equitable House, 57 Symonds St, Grafton, Auckland 1010,
New Zealand. The Group is engaged in the business of the development, manufacture and sale of cancer
detection devices and systems.
Basis of Preparation
These financial statements have been prepared under the historical costs convention, modified by the
revaluation of certain assets and liabilities.
The principal accounting policies adopted in the preparation of the financial report are unchanged from the
Interim Financial Statements for the period ended 30 September 2021 and Annual Financial Statements for
the year ended 31 March 2021. These policies have been consistently applied to all the periods presented,
unless otherwise stated.
The financial statements have been rounded to the nearest dollar.

NOTE 2. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS
The Company makes estimates and assumptions concerning the future that affects the amounts reported in
the financial statements. Estimates and judgments are continually evaluated and based on historical
experience and other factors, including expectations of future events that are believed to be reasonable
under the circumstances. The estimates will, by definition, seldom equal the related actual results. The
estimates and assumptions that have a significant risk of causing material adjustments to the carrying
amounts of assets and liabilities within the next financial year are discussed below:

Valuation of Intangible Assets

The Directors have undertaken a comprehensive Impairment Review (“Review”) of the intangible assets
belonging to the Company at the reporting date. This Review has been undertaken in compliance with NZ
IAS 36 (‘IAS 36’) and its detailed specifications with the assistance of an independent consultant. The
impairment review is based upon projections of performance which while Truscreen is in early
commercialisation phase are somewhat uncertain.
In addition, the disruptions experienced from COVID over the previous two financial years are expected to
continue and have been exacerbated in the markets where the Company operates, with increased global
uncertainties. These include geopolitical tensions in Ukraine, the impact of China’s zero COVID policy
with the Chinese borders remaining closed, prolonged COVID lockdowns in other markets, rising inflation
and interest rates and disruption to international supply chains.
The Board is of the opinion that given the level of uncertainty, that a full provision for impairment of the
remaining carrying value of non-current assets in the amount of $4,622,134 should be made, until some
stability returns to our International markets.

TRUSCREEN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022


7
NOTE 2. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS (Continued)
The provision for impairment, will be reviewed as uncertainties recede at future balance dates and
reversed where applicable. The provision is non-cash and has no impact on the operations of the
Company.
The provision for impairment of intangible assets of $4,423,287 has been booked bringing the carrying
value to zero (prior year assets acquired at cost, net of amortisation charges $3,561,162 and costs of
development of the Truscreen Gen2 device, net of amortisation charges was $1,440,140).

NOTE 3. REVENUE 2022

2021


$ $
Sales revenue - sale of goods


Wholesalers/distributors

1,462,566 1,127,350
Direct to customer

215,899 5,291


1,678,465 1,132,641
Other income


Research and development tax offset


- Current year

593,197 549,109
- Prior year adjustment

48,830 23,628


642,027 572,737
Interest received

372 1,820
Foreign exchange gain

103,348 -
Government assistance and grants

228,167 268,717


973,914 843,274



NOTE 4. EARNINGS PER SHARE





2022


2021

$ $
Net loss attributable to shareholders

(7,892,672) (3,490,010)
Weighted average number of ordinary shares on issue

362,866,253 323,761,703
Basic loss per share (cents) (based on weighted average
number of shares on issue)

(2.18) (1.08)

TRUSCREEN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022


8
NOTE 5. ISSUED CAPITAL

a) Ordinary Shares


2022 2022 2021 2021
Group
Number $ Number $
Balance at beginning of the year of fully paid
ordinary shares 362,866,253 34,550,048 227,534,804 27,492,050
Ordinary shares issued
Share issue May 2020 @ $0.05 per share
i
- - 104,860,021 5,242,968
Share issue December 2020 @ $0.07 per
share
ii
- - 28,571,428 2,000,000
Exercise of options
iii
- - 1,900,000 247,000
Share issue costs - - - (431,970)
Balance at 31 March 362,866,253 34,550,048 362,866,253 34,550,048
No particular number of shares are authorised. There is no par value of shares.
All issued ordinary shares carry equal rights in respect of voting and the receipt of dividends, and upon
winding up rank equally with regard to the Company’s residual assets.
Shares were issued during the:
a. current period:
No shares were issued in the current period.
b. prior period:
i. the issue of 104,860,021 new shares at $0.05 per share raising $5.243m. The shares were issued
pursuant to a Share Purchase Plan, 40,000,000, and a share Placement Plan 64,860,021.
ii. the issue of 28,571,428 new shares via a placement and dual listing on the ASX, raising NZ$2.0
million at NZ$0.07 per share (A$0.065).
iii. the issue of 1,900,000 new shares on exercise of options at NZ$0.13 per share.
b) Share Options

2022 2022
Weighted
2021 2021
Weighted
Group
Number Share Based
Payments
$
Average
Exercise
Price
Number Share
Based
Payments

Average
Exercise
Price
Balance at beginning of
the year 17,777,363 306,000 13.9c 19,677,363 306,000 13.9c
Options issued¹ 2,500,000 69,500 10.0c - - -
Options issued
2
2,500,000 75,313 10.0c - - -
Options lapsed
3
(8,777,363) - - - - -
Options exercised - - - (1,900,000) - 13.0c
Balance at end of year 14,000,000 450,813 12.5 c 17,777,363 306,000 14.0c

TRUSCREEN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022


9
NOTE 5. ISSUED CAPITAL (Continued)

¹Options issued 29 December 2021 to directors and employee
2
Options issued 4 March 2022 to distributors
3
Options lapsed exercise price of 13 cents per share and expiry date 12 July 2021.























NOTE 6. CASH FLOW INFORMATION 2022 2021
$ $
Reconciliation of cash flow from operations with loss
after income tax


Loss for the period (7,892,672) (3,490,010)
Adjusted for:
Depreciation and amortisation
592,715
646,597
Impairment of non-current assets 4,622,134 -
Share based payment expense 143,767 -
Unrealised exchange difference arising from
translating loss items at the date of transaction

(145,312) 298,477
Operating cash flows before working capital changes (2,679,368) (2,544,936)
(Increase)/decrease in trade and other receivables (275,447) 182,018
Decrease/(increase) in goods and services taxes
recoverable

7,445 (26,718)
(Increase)/decrease in prepayments (73,339) 30,511
Decrease/(increase) in inventory
235,687
(228,806)
(Increase)/decrease in research and development tax
offset

(43,069)
125,765
Increase in trade and other payables 354,881 159,451
(Decrease)/increase in employee liabilities (58,487) 113,384
Net cash to operating activities
(2,531,697) (2,189,331)

10

---

NZX/ASX Announcement
30 May 2022
TruScreen FY22 Preliminary Results
(all numbers in New Zealand Dollars)

Highlights
• Product revenues up 48% YOY in a further difficult COVID year
• SUS units/revenues up 42% YOY with China market the key contributor
• TruScreen cervical cancer screening device installations increase by 24% YOY
• First sales recorded in Eastern Europe
• COGA trial completed with outstanding results, and National Pricing Approval
achieved in China
• Firmware upgrade improves cybersecurity and reduces maintenance costs
• Decision to book a provision for impairment of remaining non-current assets given
macro-economic uncertainty
Cervical cancer technology company Truscreen Group Limited (ASX/NZX: TRU) (the Company)
has released its preliminary unaudited financial results for the year ended 31 March 2022.
Financial Results for the year ended 31 March 2022
Truscreen generated product sales of $1.7m (2021: $1.1m) a 48% increase on the prior year with
China again being the major contributor. COVID continued to be an inhibiting factor in all countries
with sales in both Vietnam and Eastern Europe deferred, and in Russia then compounded by the
recent war in Ukraine.
SUS offtake increased by 42% YOY with China the major contributor. As a result of recent
lockdowns in several major cities including Beijing and Shanghai, it is expected that China sales
will remain at the current level in the year ahead, rather than achieve earlier anticipated growth.
Device manufacture will remain unaffected with TruScreen now able to manufacture in both
Australia and China.
Other income increased by 12% to $0.97m (2021: $0.84m) given an increase in the research and
development tax offset and foreign exchange gain, offset by a fall in Australian government COVID
assistance.
Total overhead expenses, excluding depreciation, amortisation and impairment were consistent at
$3.9m. Additional costs were incurred during the year in firmware upgrades and in regulatory costs
readying the Group for the new Medical Device Regulation (MDR).
The Company incurred a total loss of $7.9m (2021: $3.5m), after booking a non-cash provision for
impairment of the remaining carrying value of non-current assets in the amount of $4.6m. (see NZX
Announcement 27 May 2022). The disruptions experienced from COVID over the previous two
financial years will continue and have been exacerbated in the markets where the Company
operates, with increased global uncertainties from geopolitical tensions in Ukraine and China’s zero
COVID policy. The Chinese border remains closed from its ongoing COVID management. In
arriving at the decision, the directors considered the impact of potential prolonged COVID
lockdowns in major cities in China, ability to do business with Russia, and rising inflation and
interest rates and disruption to international supply chains.

The Board is of the opinion that given the level of uncertainty, that a full provision for impairment of
the remaining carrying value of non-current assets in the amount of ~$4.6m should be made, until
some stability returns to our international markets.
The provision for impairment, will be reviewed as uncertainties recede at future balance dates and
reversed where applicable. The provision is non-cash and has no impact on the operations of the
Company.
Net operating cash outflow for the year was higher at $2.5m (2021: $2.3m) reflecting lower receipts
from customers (a $0.3m receivable is expected to be received post year-end).
As at 31 March 2022, Truscreen had cash and cash equivalents of $2.8m (2021: $5.3m).

Operational Key Performance and Update

Truscreen made solid progress in the 2022 financial year.

 Our China business continued to strengthen with good growth in revenues, outstanding clinical
trial results, commissioning of the China device manufacturing facility and achieving National
Pricing Approval.
 First sales in Eastern Europe and product registration received in 5 counties while CE mark
allows the Company to sell product in a further 3 countries in the region.
 Marketing innovation with expanded opportunity in Vietnam and Mexico.
 A firmware upgrade implemented during the year now provides further enhanced
cybersecurity and automated features which reduces device downtime.
 The Company continues to look for opportunities to expand its medical product range to
provide our distributors with wider product access to their local markets.

TruScreen’s large scale Chinese Obstetricians & Gynaecologists Association (COGA) trial completed
in July 2021 with a total of 15,500 women from 9 provinces being screened. The positive findings
were presented orally at the ASCCP and Eurogin congress and are expected to be published later in
CY 2022. In addition, a new Chinese study (covering 458 women) published in the European Journal
of Obstetrics and Gynaecology and Reproductive Biology concluded that TruScreen’s cervical cancer
screening device meets or exceeds the effectiveness of alternative cancer screening methods: human
papillomavirus (HPV) and ThinPrep Cytology test (TCT).

The China device manufacturing facility was commissioned during the year and domestic product
registration is showing promise in opening new sales channels and widening TruScreen distribution
throughout the country including the growing Health Check sector. This development provides
TruScreen with access to an initiative supported by provincial governments, private organisations,
and non-government organisations. Major public hospitals have a separate Health Check department
offering a wide range of medical checks, including cervical cancer screening. The Health Check
departments in these hospitals provide cervical screenings to twice the number of women as the
specialist gynaecological departments within the same hospital, increasing the throughput of usage
of the TruScreen cervical cancer screening device.

Our distributors have continued to make good progress in the face of challenges of COVID. Of
particular note:
 Our first sales in Eastern Europe and completion of registration and ability to sell in eight
countries in this region
 TruScreen cervical cancer screening device being accepted as the primary cervical cancer
screening method at the Hanoi Obstetrics and Gynaecology Hospital (HOGH) Vietnam
 IntelMed Systems (IMS) participating in the “Wave of Health” ship, promoting innovative
technologies in nine Russian cities
 Mexico distributor partnered with a medical device financing company to increase the
accessibility of the TruScreen cervical cancer screening device to its 3,000 strong client base
of private and public hospitals
 A reinvigoration of the screening program sponsored by the Nationals Aids Foundation in
Zimbabwe

TruScreen completed verification and validation of a Firmware update during the year that is now
progressively being released to TruScreen devices already in the market. The Firmware update
enhances the device’s cyber security framework. As well as enhancing data security the Firmware
update also allows TruScreen devices to more effectively interface with compatible hospitals’
systems. It incorporates a state-of-the-art optical calibration feature to reduce the need for the device
to return to service centres for re-calibration. This reduced service-related downtime means clients
have their devices online for longer time periods, boosting operational efficiencies.

TruScreen’s International Experts Group now comprises representatives from United States, United
Kingdom, Hong Kong and Nigeria, who have been active during the year in promoting the benefits of
the TruScreen cervical cancer screening device in their markets.

Appointments
The Board appointed Juliet Hull, a non-executive director, as Interim CEO in April 2021. The Board
expects to appoint a full time CEO within the coming financial year.
Truscreen appointed Hubert Chan, a senior marketing executive with 15+ years’ experience in the
medical device field, as its Marketing & Communications Manager in January 2022.
Hubert holds a Master of Business Administration from the Australian Graduate School of
Management and a Bachelor of Medical Science (Honours) from the University of Sydney.

This announcement approved for release by the Board.

-ENDS-

For more information, visit

www.truscreen.com or contact:
Juliet Hull
Chief Executive Officer
juliethull@truscreen.com
Guy Robertson
Chief Financial Officer
guyrobertson@truscreen.com

About TruScreen:
TruScreen cervical cancer screening device offers the latest technology in cervical screening, providing real-
time, accurate detection of precancerous 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 intra-epithelial 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
conventional Pap tests, including failed samples, poor patient follow-up, patient discomfort and the need for
supporting laboratory infrastructure. As such, TruScreen’s target market is low and middle-income countries
where no large-scale cervical cancer screening programs and infrastructure are in place, such as China, Mexico,
Africa, Russia and India. TruScreen’s cervical cancer screening device is CE-marked and certified for use
throughout Europe and CFDA approved for sale in China. The global market potential for TruScreen is
significant.

---

Results announcement




Results for announcement to the market
Name of issuer Truscreen Group Limited
Reporting Period 12 months to 31 March 2022
Previous Reporting Period 12 months to 31 March 2021
Currency NZ Dollars
Amount (000s) Percentage change
Revenue from continuing
operations
$1,678 48%
Total Revenue $1,678 48%
Net profit/(loss) from
continuing operations
$(7,893) (126%)
Total net profit/(loss) $(7,893) (126%)
Interim/Final Dividend
Amount per Quoted Equity
Security
N/A
Imputed amount per Quoted
Equity Security
N/A
Record Date N/A
Dividend Payment Date N/A
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.0094 $0.0174
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
See attached announcement
Authority for this announcement
Name of person

authorised
to make this announcement
Guy Robertson Chief Financial Officer
Contact person for this
announcement
Guy Robertson
Contact phone number +61 407 983 270
Contact email address guyrobertson@truscreen.com
Date of release through MAP

30 May 2022

Unaudited financial statements accompany this announcement.