TruScreen Half Year Results

NZX/ASX Announcement
29 November 2022

TruScreen unaudited interim results for the half-year ended 30 September 2022

Highlights for Half Year ended 30 September 2022
• Revenue in line with prior year, in face of challenging market conditions
• Further growth potential in China on relaxation of COVID restrictions
• Developments in Vietnam, Saudi Arabia, Mexico, eastern Europe should produce
results in year ahead
• Appointment of CEO, Dr Beata Edling
Cervical cancer screening technology company, TruScreen Group Limited (NZX/ASX: TRU)
(‘TruScreen’ or ‘the Company), is pleased to provide its unaudited financial results for the six months
to 30 September 2022 (1H FY23), along with the following operational update. TruScreen reports
according to the New Zealand financial year, which runs from 1 April to 31 March.
The Company reported an operating loss of $1.22m (1H FY22: $1.26m, which included non-cash
amortisation of $0.3m). Revenue was consistent for the six months YOY at $0.74m with COVID Zero
lockdowns having a negative impact in China. The Ukraine war precluded any shipments to Russia
and slowed down TruScreen’s ability to further develop Eastern Europe.
SUS unit sales were in line with the previous year and device sales were up on the previous year with
sales of Made in China devices to China’s new private health check market.
Net operating cash outflow was $1.2m (1H FY22: $1.7m). The difference between the years being
the Australian research and development tax refund received during the current half year, but just
after the previous half year in the amount of $0.6m. Operating cash outflows were $1.2m (1H FY22:
$1.7m). The current period includes termination costs of personnel as the Company realigned its
operations to suit prevailing global market conditions.
The Company made a provision for all non-current assets in the prior year. The loss for the previous
six months 1H FY22 included a non-cash amortisation and depreciation charge of $0.30m.
As at 30 September 2022, the Company had cash and cash equivalents of $1.68m.
Half-Year Commentary
TruScreen has maintained its revenue base despite disruptive and challenging market conditions.
Market developments
China
TruScreen continues to support ongoing initiatives to expand its reach in China, its most established
market and the world’s largest addressable cervical cancer screening market (circa 404 million
women of screening age).
TruScreen has recently been added to the cervical cancer screening protocol in the largest medical
private check-up centre in China. The private health check-up centre within the PLA 301 General
Hospital, approved the use of TruScreen in its cervical cancer screening services with installation now

having commenced. The private health check-up project aims to screen 10,000 women across 10
centres in 3-6 months.
TruScreen’s China distributor Beijing Siweixiangtai Technology Company Ltd (SWXT) relaunched
distribution of TruScreen cervical cancer screening device to Xinjiang Uygur Autonomous Region,
during the period. The Xinjiang UAR has a population of 26 million spread over an area of 1.7 million
sq km. This vast area has numerous ethnic minority groups in remote locations with the Xinjiang UAR
government providing special funding for cancer screening programmes.
The TruScreen cervical cancer screening device is ideally suited for Xinjiang UAR and has significant
advantages in undertaking cervical cancer screening programmes in this vast area with many remote
locations. The ability to provide a real time result with a robust TruScreen cervical cancer screening
device, without the need for laboratory infrastructure, will support the UAR government’s programme
of improving the lives of women in ethnic minorities.
Latin America
A TruScreen-based cervical cancer screening centre was opened in Ciudad de Mexico (Mexico City),
operated by Mexpharm Medical Clinical, during the period.
Mexpharm Medical Clinical a leader in healthcare in Mexico, specialises in comprehensive medical
care focused on the needs of patients and clinicians. It provides state-of-the-art medical technologies
and doctors specialized in ophthalmology, endoscopy, gynaecology-oncology, internal medicine,
anaesthesiology, and general medicine. It delivers competitively priced, quality short-stay medical
care with high level of professional medical care.
The centre showcases TruScreen’s medical technology, acts as a training centre, and provides
screening services to local population.
Zimbabwe
The National Aids Council's (NAC) TruScreen Masvingo pilot project continues to make good
progress. In FY Q2, 16 devices were installed at local clinics and hospitals, and have screened over
4,000 women, averaging ~100 screenings per month per device. Recently NAC have further
strengthened their commitment to the project by allocating additional funds to increase awareness
and uptake of screening via a community outreach program that will travel to the 16 sites over the
next 3 months.
Vietnam
TruScreen see significant opportunity in Vietnam, despite intermittent COVID lockdown delays.
TruScreen recently received approvals for clinical use of its screening device in two top hospitals in
Southern Vietnam, with a further four evaluations by Ministry of Health (MoH) underway. A roll-out of
TruScreen into community medical centres is scheduled in 2H FY2023.
Medical Symposium
The Company successfully completed delivery of its first global virtual medical symposium to key
opinion leaders from 7 countries, on cervical cancer screening, during 1H FY2023.

The medical symposium was chaired by Professor Neville Hacker, one of the world leaders in
gynaecology-oncology and a Founder of first multidisciplinary Australian Gynaecological Cancer
Centre in Sydney in 1986. The speakers at the medical symposium included Associate Professor
Michael Campion, Head of the Pre-Invasive Clinic at the Gynaecological Cancer Centre of the Royal
Hospital for Women in Sydney, Professor Hextan Ngan from University of Hong Kong, Associate
Professor Fei Chen of Peking Union Medical College Hospital in China, Dr Bernard Madzima, the
CEO of the National AIDS Council in Zimbabwe and Dr Majed Alhudhud, the Director of Gynaecology
Oncology Services at the Aryan Hospital Medical Group, Riyadh, Saudi Arabia.
The medical symposium, titled “Place of advanced technologies in screening for cervical cancer” had
132 registrations from Key Opinion Leaders from China, Mexico, Russia, Poland, Vietnam, Zimbabwe
and Saudi Arabia. The medical symposium enabled professional discussions on TruScreen and its
current clinical data and presented the success in cervical cancer screening programs in several
countries.
Professor Fei Chan presented her report on the excellent results from the 3 years COGA (Chinese
Obstetricians & Gynaecologists Association) trial where 15,661 women were screened across 64
hospitals.
Regulatory Compliance
TruScreen is currently investing and transitioning its documentation and regulatory processes to
comply with the new Medical Device Regulation (MDR) which is mandatory in May 2024. During the
half year the Company was subjected to three external audits necessary to maintain compliance with
EC and ISO requirements and to determine MDR readiness. No non-conformances were identified.
Appointment of Chief Executive Officer
In recognition of the waning of the COVID 19 pandemic and the need for the Company to prepare
itself for the post-pandemic economic environment, the Company moved to appoint a permanent
Chief Executive Officer to provide leadership to the Company. Dr Beata Edling was appointed Chief
Executive Officer in early October 2022 having previously worked with TruScreen as the Medical
Affairs and Market Access Lead.
Dr. Edling, who joined TruScreen in October 2020, is an experienced executive who previously led
large and small Medical Affairs Teams and commercialised numerous medical products with global
pharmaceutical companies, Sanofi-Aventis, Shire, Eli Lily and Amgen for Australia and New Zealand.
Dr Edling was previously a Non-Executive Director of ASX listed Noxopharm Limited. Dr. Edling is
multi-lingual and speaks several European languages. In addition to her medical degrees and training,
Dr. Edling holds an MBA from Australian Graduate School of Management.

Outlook
TruScreen has managed to maintain its financial performance despite the disruptive and challenging
global market conditions. We have continued to support our distributors and invest in developing our
emerging new markets. We have invested heavily in transitioning our regulatory systems and
processes to the new MDR framework. Our Made In China devices for China has opened up new
market opportunities in China. We will continue to focus on manufacturing cost reductions to enhance
gross margin. As we come out on the other side of the COVID 19 pandemic, we expect that the many
initiatives of the past years will bear fruit in the years to come.


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

Dr Beata Edling
Chief Executive Officer
beataedling@truscreen.com



Guy Robertson
Chief Financial Officer
guyrobertson@truscreen.com

Julia Maguire
Investor Relations
julia@thecapitalnetwork.com.au



About TruScreen:

TruScreen Group Limited (NZX/ASX: TRU) is a New Zealand-based medical device company that has
developed and manufactures an AI-enabled device for detecting abnormalities in the cervical tissue
in real-time via measurements of the low level of optical and electrical stimuli.
TruScreen’s cervical screening technology enables cervical screening, and it does not incur issues with
sampling and processing of biological tissues, including failed samples, missed follow-up, discomfort,
and the need for costly, specialised personnel and supporting laboratory infrastructure.
The TruScreen device, TruScreen ® Ultra, is registered as a primary screening tool for cervical cancer
screening.
The device is EC certified, ISO 13485 compliant and is registered for clinical use with the TGA
(Australia), MHRA (UK), NMPA (China), SFDA (Saudi Arabia), Roszdravnadzor (Russia), and COFEPRIS
(Mexico). It has Ministry of Health approval for use in Vietnam, Zimbabwe, Israel, Ukraine, and the
Philippines, among others and has active distribution agreements in 23 countries. It is also National
Medical Products Administration approved for sale in China. In 2021, TruScreen established a
manufacturing facility in China for devices marketed and sold in China.
To date, over 170000* examinations had been performed with TruScreen device and over 200
devices have been installed and used in China, Vietnam, Mexico, Zimbabwe, Russia, and Saudi
Arabia. TruScreen’s vision is” A world without the cervical cancer”.
To learn more, please visit: www.truscreen.com/.
*Based on Single Disposable Sheath sales.

---

Template
Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Updated as at 17 October 2019


Results for announcement to the market
Name of issuer Truscreen Group Limited
Reporting Period 6 months to 30 September 2022
Previous Reporting Period 6 months to 30 September 2021
Currency
Amount (000s) Percentage change
Revenue from continuing
operations
$740 -0.6%
Total Revenue $1,125 -20.7%
Net profit/(loss) from
continuing operations
($1,220) +3.1%
Total net profit/(loss) ($1,220) +3.1%
Interim/Final Dividend
Amount per Quoted Equity
Security
The Company does not propose to pay a dividend
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
$0.0064 $0.0141
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

29 November 2022

Unaudited financial statements accompany this announcement.

---

TRUSCREEN GROUP LIMITED








TRUSCREEN GROUP LIMITED

Interim Unaudited Financial Statements

For the Six Months Ended 30 September 2022

TRUSCREEN GROUP LIMITED


Table of contents


Page


Review of Operations 1
Consolidated statement of profit or loss and other comprehensive income 6
Consolidated statement of financial position 7
Consolidated statement of changes in equity 8
Consolidated statement of cash flows 9
Notes to the interim unaudited condensed financial statements 10

TRUSCREEN GROUP LIMITED

3
REVIEW OF OPERATIONS

Highlights for Half Year ended 30 September 2022
• Revenue in line with prior year, in face of challenging market conditions
• Further growth potential in China on relaxation of COVID restrictions
• Developments in Vietnam, Saudi Arabia, Mexico, eastern Europe should produce results in
year ahead
• Appointment of CEO, Dr Beata Edling
Cervical cancer screening technology company, TruScreen Group Limited (NZX/ASX: TRU) (‘TruScreen’
or ‘the Company), is pleased to provide its unaudited financial results for the six months to 30 September
2022 (1H FY23), along with the following operational update. TruScreen reports according to the New
Zealand financial year, which runs from 1 April to 31 March.
The Company reported an operating loss of $1.22m (1H FY22: $1.26m, which included non-cash
amortisation of $0.3m). Revenue was consistent for the six months YOY at $0.74m with COVID Zero
lockdowns having a negative impact in China. The Ukraine war precluded any shipments to Russia and
slowed down TruScreen’s ability to further develop Eastern Europe.
SUS unit sales were in line with the previous year and device sales were up on the previous year with
sales of Made in China devices to China’s new private health check market.
Net operating cash outflow was $1.2m (1H FY22: $1.7m). The difference between the years being the
Australian research and development tax refund received during the current half year, but just after the
previous half year in the amount of $0.6m. Operating cash outflows were $1.2m (1H FY22: $1.7m). The
current period includes termination costs of personnel as the Company realigned its operations to suit
prevailing global market conditions.
The Company made a provision for all non-current assets in the prior year. The loss for the previous six
months 1H FY22 included a non-cash amortisation and depreciation charge of $0.30m.
As at 30 September 2022, the Company had cash and cash equivalents of $1.68m.

Half-Year Commentary
TruScreen has maintained its revenue base despite disruptive and challenging market conditions.
Market developments
China
TruScreen continues to support ongoing initiatives to expand its reach in China, its most established
market and the world’s largest addressable cervical cancer screening market (circa 404 million women of
screening age).
TruScreen has recently been added to the cervical cancer screening protocol in the largest medical private
check-up centre in China. The private health check-up centre within the PLA 301 General Hospital,
approved the use of TruScreen in its cervical cancer screening services with installation now having
commenced. The private health check-up project aims to screen 10,000 women across 10 centres in 3-6
months.

TRUSCREEN GROUP LIMITED

4

TruScreen’s China distributor Beijing Siweixiangtai Technology Company Ltd (SWXT) relaunched
distribution of TruScreen cervical cancer screening device to Xinjiang Uygur Autonomous Region, during
the period. The Xinjiang UAR has a population of 26 million spread over an area of 1.7 million sq km. This
vast area has numerous ethnic minority groups in remote locations with the Xinjiang UAR government
providing special funding for cancer screening programmes.
The TruScreen cervical cancer screening device is ideally suited for Xinjiang UAR and has significant
advantages in undertaking cervical cancer screening programmes in this vast area with many remote
locations. The ability to provide a real time result with a robust TruScreen cervical cancer screening device,
without the need for laboratory infrastructure, will support the UAR government’s programme of improving
the lives of women in ethnic minorities.
Latin America
A TruScreen-based cervical cancer screening centre was opened in Ciudad de Mexico (Mexico City),
operated by Mexpharm Medical Clinical, during the period.
Mexpharm Medical Clinical a leader in healthcare in Mexico, specialises in comprehensive medical care
focused on the needs of patients and clinicians. It provides state-of-the-art medical technologies and
doctors specialized in ophthalmology, endoscopy, gynaecology-oncology, internal medicine,
anaesthesiology, and general medicine. It delivers competitively priced, quality short-stay medical care
with high level of professional medical care.
The centre showcases TruScreen’s medical technology, acts as a training centre, and provides screening
services to local population.
Zimbabwe
The National Aids Council's (NAC) TruScreen Masvingo pilot project continues to make good progress. In
FY Q2, 16 devices were installed at local clinics and hospitals, and have screened over 4,000 women,
averaging ~100 screenings per month per device. Recently NAC have further strengthened their
commitment to the project by allocating additional funds to increase awareness and uptake of screening
via a community outreach program that will travel to the 16 sites over the next 3 months.
Vietnam
TruScreen see significant opportunity in Vietnam, despite intermittent COVID lockdown delays. TruScreen
recently received approvals for clinical use of its screening device in two top hospitals in Southern Vietnam,
with a further four evaluations by Ministry of Health (MoH) underway. A roll-out of TruScreen into
community medical centres is scheduled in 2H FY2023.
Medical Symposium
The Company successfully completed delivery of its first global virtual medical symposium to key opinion
leaders from 7 countries, on cervical cancer screening, during 1H FY2023.
The medical symposium was chaired by Professor Neville Hacker, one of the world leaders in
gynaecology-oncology and a Founder of first multidisciplinary Australian Gynaecological Cancer Centre in
Sydney in 1986. The speakers at the medical symposium included Associate Professor Michael Campion,
Head of the Pre-Invasive Clinic at the Gynaecological Cancer Centre of the Royal Hospital for Women in
Sydney, Professor Hextan Ngan from University of Hong Kong, Associate Professor Fei Chen of Peking
Union Medical College Hospital in China, Dr Bernard Madzima, the CEO of the National AIDS Council in
Zimbabwe and Dr Majed Alhudhud, the Director of Gynaecology Oncology Services at the Aryan Hospital
Medical Group, Riyadh, Saudi Arabia.

TRUSCREEN GROUP LIMITED

5

The medical symposium, titled “Place of advanced technologies in screening for cervical cancer” had 132
registrations from Key Opinion Leaders from China, Mexico, Russia, Poland, Vietnam, Zimbabwe and
Saudi Arabia. The medical symposium enabled professional discussions on TruScreen and its current
clinical data and presented the success in cervical cancer screening programs in several countries.
Professor Fei Chan presented her report on the excellent results from the 3 years COGA (Chinese
Obstetricians & Gynaecologists Association) trial where 15,661 women were screened across 64
hospitals.
Regulatory Compliance
TruScreen is currently investing and transitioning its documentation and regulatory processes to comply
with the new Medical Device Regulation (MDR) which is mandatory in May 2024. During the half year the
Company was subjected to three external audits necessary to maintain compliance with EC and ISO
requirements and to determine MDR readiness. No non-conformances were identified.
Appointment of Chief Executive Officer
In recognition of the waning of the COVID 19 pandemic and the need for the Company to prepare itself for
the post-pandemic economic environment, the Company moved to appoint a permanent Chief Executive
Officer to provide leadership to the Company. Dr Beata Edling was appointed Chief Executive Officer in
early October 2022 having previously worked with TruScreen as the Medical Affairs and Market Access
Lead.
Dr. Edling, who joined TruScreen in October 2020, is an experienced executive who previously led large
and small Medical Affairs Teams and commercialised numerous medical products with global
pharmaceutical companies, Sanofi-Aventis, Shire, Eli Lily and Amgen for Australia and New Zealand. Dr
Edling was previously a Non-Executive Director of ASX listed Noxopharm Limited. Dr. Edling is multi-
lingual and speaks several European languages. In addition to her medical degrees and training, Dr. Edling
holds an MBA from Australian Graduate School of Management.
Outlook
TruScreen has managed to maintain its financial performance despite the disruptive and challenging global
market conditions. We have continued to support our distributors and invest in developing our emerging
new markets. We have invested heavily in transitioning our regulatory systems and processes to the new
MDR framework. Our Made In China devices for China has opened up new market opportunities in China.
We will continue to focus on manufacturing cost reductions to enhance gross margin. As we come out on
the other side of the COVID 19 pandemic, we expect that the many initiatives of the past years will bear
fruit in the years to come.
I would like to take the opportunity to thank shareholders for their ongoing support and encourage you to
stay up to date with TruScreen news via the NZX/ASX announcements platforms as well as our website
and social media accounts.


Anthony Ho
Chairman
29 November 2022

TRUSCREEN GROUP LIMITED

6
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2022


Unaudited
for the six
months
ended 30
September
2022
Unaudited
for the six
months
ended 30
September
2021

Audited
for the year
ended 31
March 2022
Note $ $ $
Revenue from the sale of goods 740,034 745,146 1,678,465
Other income 4 385,191 673,688 973,914
Inventories used (557,143) (519,378) (1,155,725)
Write off of obsolete inventory - - (181,217)
Employee benefit expenses and directors’
fees (490,076) (507,112) (991,911)
Administration (187,663) (170,971) (347,808)
Research and development expenses (495,204) (796,339) (1,498,629)
Rent (28,442) (27,263) (54,139)
Travel (17,969) (3,376) (4,969)
Regulatory compliance, consulting &
marketing (410,082) (197,479) (716,923)
Insurance (69,595) (57,146) (116,191)
Shareholder relations & services (89,378) (97,838) (117,877)
Amortisation & depreciation - (300,850) (592,715)
Provision for impairment plant and equipment - - (198,847)
Provision for impairment of intangible assets - - (4,423,287)
Share based payments - - (144,813)
Loss before income tax (1,220,326) (1,258,918) (7,892,672)
Income tax expense - - -
Loss for the period after income tax (1,220,326) (1,258,918) (7,892,672)
Other comprehensive income
Item that may be reclassified subsequently to
profit or loss
Exchange gain/(loss) on translating foreign
subsidiary operations 137,465 (394,945) (166,281)
Other comprehensive income/(loss) for the
period

137,465 (394,945) (166,281)
Total comprehensive loss for the period

(1,082,861) (1,653,863) (8,058,953)
Basic and diluted losses (cents per share) (0.34) (0.35) (2.18)
The accompanying notes form part of these financial statements.

TRUSCREEN GROUP LIMITED

7

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2022


Unaudited
30
September
2022

Unaudited
30
September
2021

Audited
31 March
2022

Note $ $ $
CURRENT ASSETS


Cash and cash equivalents 1,677,547 3,673,500 2,797,004
Trade receivables 150,445 6,672 275,447
Other receivables 248,875 961,466 601,554
Goods and services taxes recoverable 29,161 33,902 36,782
Inventories 707,205 691,607 496,887
Other assets – prepayments 119,603 160,588 179,270
TOTAL CURRENT ASSETS 2,932,836 5,527,735 4,376,944

NON-CURRENT ASSETS
Plant and equipment - 266,078 -
Intangible assets - 4,546,722 -
TOTAL NON-CURRENT ASSETS - 4,812,800 -

TOTAL ASSETS 2,932,836 10,340,535 4,386,944

CURRENT LIABILITIES
Trade and other payables 463,541 556,238 807,374
Employee benefits 130,855 92,743 140,385
TOTAL CURRENT LIABILITIES 594,396 648,981
947,759

NON-CURRENT LIABILITIES

Employee benefits 26,250 36,226
44,134
TOTAL NON-CURRENT LIABILITIES 26,250 36,226
44,134

TOTAL LIABILITIES 620,646 685,207 991,893

NET ASSETS 2,312,190 9,655,328 3,395,051

EQUITY
Issued capital 7 34,550,048 34,550,048 34,550,048
Share option reserve 144,813 306,000 450,813
Foreign currency translation reserve (243,379) (609,508) (360,844)
Accumulated losses (32,139,292) (24,591,212) (31,224,966)
Total Equity 2,312,190 9,655,328 3,395,051
The accompanying notes form part of these financial statements.

TRUSCREEN GROUP LIMITED

8

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2022

Share
Capital
Accumulated
Losses
Foreign
Currency
Translation
Reserve
Option
Reserve Total
Note $ $ $ $ $
Balance at 31 March
2021 (Audited)

34,550,048 (23,332,294)
(214,563)
306,000 11,309,191
Comprehensive income




Loss for the period ended
30 September 2021

- (1,258,918) - - (1,258,917)
Exchange differences on
translation of foreign
subsidiary operations

- - (394,945) - (394,945)
Total comprehensive
loss for the period
(unaudited)

- (1,258,918) (394,945) - (1,653,862)
Balance at 30
September 2021
(Unaudited)

34,550,048

(24,591,212)

(609,508)

306,000

9,655,328
Balance at 31 March
2022 (Audited)

34,550,048 (31,224,966)
(380,844)
450,813 3,395,051
Comprehensive income




Loss for the period ended
30 September 2022

- (1,220,326) - - (1,220,326)
Exchange differences on
translation of foreign
subsidiary operations

- - 137,465 - 137,465
Total comprehensive
loss for the period
(unaudited)

- (1,220,326) 137,465 - (1,082,861)
Transfer from option
reserve

- 306,000 - (306,000) -
Balance at 30
September 2022
(Unaudited)

34,550,048

(32,139,292)

(243,379)

144,813

2,312,190



The accompanying notes form part of these financial statements.

TRUSCREEN GROUP LIMITED

9


CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2022

Unaudited
for the six
months
ended 30
September
2022

Unaudited
for the six
months
ended 30
September
2021


Audited for
the year
ended 31
March 2022
Note $

$ $
CASH FLOW FROM OPERATING
ACTIVITIES




Cash receipts from customers 918,401 763,087 1,434,264
Cash paid to suppliers and employees (2,719.056) (2,517,329) (4,586,932)
Cash received from research and
development tax offset

650,479

-

620,888
Government subsidies - 99,114
123,535
Short-term lease payments not included in
lease liability (66,363) (64,933)

(123,775)
Interest received 774 196 323
Net cash used in operating activities 8
(1,215,766) (1,719,865) (2,531,697)

CASH FLOW FROM INVESTING
ACTIVITIES






Purchase of plant and equipment - - (2,662)
Net cash used in investing activities - - (2,662)

CASH FLOW FROM FINANCING
ACTIVITIES





Cash flow from financing activities - - -

Net cash provided by financing activities

- - -

Net decrease in cash and cash
equivalents

(1,215,766) (1,719,865) (2,534,359)
Cash and cash equivalents at beginning of
period

2,797,004 5,255,074
5,255,074
Effect of foreign exchange adjustment on
cash balances

96,309 138,291

76,289
Cash and cash equivalents at end of
period 1,677,547 3,673,500 2,797,004
The accompanying notes form part of these financial statements.

TRUSCREEN GROUP LIMITED

10

1. REPORTING ENTITY
These consolidated unaudited interim condensed financial statements presented for the six
months ended 30 September 2022 are those of TruScreen Group Limited and its subsidiaries
(the “Group”). References to “TruScreen” are used to refer both to the Group and 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 Group’s principal activity relates to the research & development and manufacture of cancer
detection devices and systems.
These consolidated unaudited interim financial statements were authorised for issue by the Board
of Directors on 29 November 2022.
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 currency 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 2022.
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 2022.
The consolidated unaudited interim financial statements are prepared on the basis of historical
cost, except where otherwise identified.

Going Concern
The Group interim financial statements have been prepared on a going concern basis, which
contemplates the continuity of normal business activity and the realisation of assets and the
settlement of liabilities in the normal course of business.
As disclosed in the interim financial statements, the Group reported;
• a loss of $1,220,236 (2021: $1,258,918). The 2021 result is after provision for impairment
and amortisation of non-current assets of $300,850.
• net cash outflows from operating and investing activities of $1,215,766 (2021: $1,719,865)
• cash as at half year end of $1,677,547 (2021: $3,673,500)
The Directors have undertaken a detailed cash flow forecast for the twelve months following the
date of approval of report.

11

TRUSCREEN GROUP LIMITED
The Directors have determined that the Company will need to raise capital to support the further
development of its target markets to move the Company to profitability. Initial discussions with
brokers have been held and the Directors are confident that it will be able to raise sufficient funds
to support the Company in the twelve months following the date of this report.
The Board considers that supported by a capital raise, the projected twelve month cash flow
forecasts will be achievable and sufficient to provide cash to cover any operating deficit and
capital expenditure. The Board considers managing cash flow and working capital as critical in
executing the strategies of the Group.
If
the Group is unable to meet forecasts due to market uncertainties and is also unable to raise
additional capital, if and when required, there would be a material uncertainty as to the entities
ability to continue as a going conc
ern.
3.CRI
TICAL 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.
IMPAIRMENT OF NON-CURRENT ASSETS
The Directors undertook a comprehensive Impairment Review (“Review”) of the intangible assets
of the Company as at the 31 March 2022 year end. This Review was undertaken in compliance
with NZ IAS 36 Impairment (‘IAS 36’) and its detailed specifications with the assistance of an
independent consultant.
In particular, the Directors assessed the risk of not meeting the projected device and SUS sales
and rollout in China and other countries as a result of COVID-19 pandemic. These risks were
considered in determining the budget for 2023 and the impact on sales revenue in subsequent
years.
The global uncertainties from geopolitical tensions in Ukraine and China’s zero COVID policy will
impact the markets that the Group are in. The Chinese border remains closed from its ongoing
COVID management while the war in Ukraine has potential implications for the Group’s business
in Russia. Given these uncertainties the Directors have resolved as at 31 March 2022 to create
a provision for the carrying cost of the remaining non current assets in the amount of $4.6 million.
In arriving at the decision, the Directors considered the impact of a potential prolonged covid
lockdowns in major cities in China, ability to do business with Russia, and rising inflation and
interest rates.
As at 30 September 2022, the Directors have determined that there are no indicators which would
warrant the Provision for impairment made as at 31 March 2022 should be reversed.
The Directors will continue to review available indicators as at each future half year reporting
balance date.

TRUSCREEN GROUP LIMITED

12

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
2022

Unaudited for
the six months
ended 30
September 2021
Audited for
the year ended
31 March
2022

$ $ $
Other income

Research and development tax
refund/offset¹

- Current year
248,875 361,032 593,197
- Prior year adjustment
25,048 48,898 48,830

273,923 409,930 642,027
Interest
778 216 372
Government subsidies
- 99,114 228,167
Foreign exchange gains
110,490 164,428 103,348
Total other income
385,191 673,688 973,914

¹Ongoing Research & development is being conducted in the following areas:
• Clinical trials;
• Software & firmware improvements incorporated from feedback on devices 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.

5. ADMINSTRATION AND OTHER OPERATING EXPENSES
The following commentary explains the movement in administration and operating expenses over
the previous half year:
Research and development costs: The decrease in these costs reflected the completion of the
research and development cybersecurity and self-calibration projects and limited further
development given that the product is now stable and market ready. Current projects include
improvement of the algorithm which will increase the accuracy of the TruScreen cervical cancer
screening device beyond other screening methods.
Regulatory, consulting and marketing costs: The increase in regulatory costs reflects work being
undertaken to ensure that that the Company meets the requirements of the new global Medical
Device Regulation (MDR) which takes effect for our products in May 2024.

TRUSCREEN GROUP LIMITED

13


6. OPERATING SEGMENTS
The Group operates in one operating segment. It owns the intellectual property and 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 earns revenue largely from China, with developing markets in South East Asia, Russia,
Mexico, India, Africa and Eastern Europe. Revenues are from sales to the Company’s distributors
(indirect channel of distribution).
One major customer contributed more than 10% of the Group’s revenue in the six months to 30
September 2022 of $731,258 (98%) (2021: one customer of $647,839 87%).
No additional disclosure is required in the interim financial statements as the Group has one
reportable segment.

7. SHARE CAPITAL

No. $
Balance at 30 September 2021
362,866,253 34,550,048
Balance at 31 March 2022
362,866,253 34,550,048
Balance at 30 September 2022
362,866,253 34,550,048

TRUSCREEN GROUP LIMITED

14

8. RECONCILIATION OF CASH FLOW FROM OPERATING ACTIVITIES


Unaudited
for the six
months
ended 30
September
2022
Unaudited
for the six
months
ended 30
September
2021
Audited for
the year
ended 31
March 2022

$

$ $
Reconciliation of cash flow from operations
with loss after income tax





Loss for the period
(1,220,326)

(1,258,918)

(7,892,672)
Adjusted for:



Depreciation and amortisation
2,440 300,850

592,715
Impairment of non-current assets
- -

4,622,144
Share based payment expense
- -

144,813
Exchange difference arising from translating
loss items at the date of transaction and
translating cash balances at period end rates
40,918 (338,487)

(146,358)
Operating cash flows before working capital
changes
(1,176,968) (1,296,555)
(2,679,368)
Decrease/(increase) in trade receivables
125,003 (6,672) (275,447)
Decrease in goods and services taxes
recoverable
7,621

10,325

7,445
Decrease/(increase) in prepayments
61,871

(54,658)
(73,339)
(Increase)/decrease in inventory
(210,317)

40,967
235,687
Increase/(decrease) in research and
development refundable tax offset
352,680

(402,981)

(43,069)
Decrease/(increase) in trade and other
payables
(343,834)

103,745
354,881
Decrease in employee liabilities
(27,414)

(114,036)
(58,487)
Net cash outflow from operating activities
(1,211,358)

(1,719,865)

(2,531,697)

TRUSCREEN GROUP LIMITED

15

9. NET TANGIBLE ASSETS PER SHARE



Unaudited
as at
30 September
2022
Unaudited
as at
30 September
2021
Audited
as at
31 March
2022
Net tangible assets ($)

2,312,190 5,108,606 3,395,051
Shares on issue at the end of period

362,866,253

362,866,253

362,866,253
Net tangible assets per share (cents
per share)

0.64

1.41

0.94

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

11. EVENTS SUBSEQUENT TO END OF THE INTERIM PERIOD
Other than as outlined in the Corporate section of the Half-Yearly Review of Operations, there
are no other events since 30 September 2022 which would have a material effect on the Group’s
unaudited interim financial statements for the six months ended 30 September 2022.