Rua Bioscience Limited releases annual results - unaudited

FOR PUBLIC RELEASE
NZX Limited
Wellington

Thursday, 29 August 2024

Rua Bioscience Limited releases annual results - unaudited
Continuation of strategy as market pipelines established
Summary financials
FY24 $
unaudited
FY23 $
audited
Revenue (from customers) 85,837 357,675
Revenue (incl. fair value gains) 321,678 6,532,612
Profit/(Loss) before fair value gain and impairment (4,504,779) (6,240,820)
Profit/(Loss) before tax (13,718,754) (5,958,506)
FY24 milestones
• Established revenue pipelines soon to fill with unique legacy genetics.
• Achieved first revenues in Australia and developed solid sales and distribution
channels for a comprehensive product range. 
• Extended the distribution contract with Nimbus Health in Germany for an
additional three years and additional countries in Europe.
• Signed a distribution agreement with Target Healthcare in the United Kingdom.
• Received approval from Ministry of Health NZ for two new products for the local
market. 
• Secured agreements with Portuguese based companies to undertake cultivation
trials in Portugal, to supply the European market.
• Signed an offtake agreement with a New Zealand cultivator to export Rua’s
legacy genetics to Australia. 
MARKET ANNOUNCEMENT

Māori founded, Tairawhiti based Rua Bioscience Limited (NZX: RUA) today announces
financial results for the year ended 30 June 2024. Within the reporting year, the business
focused on the delivery of its differentiated strategy – anchored in genetics and
distribution – to prepare itself for the next phase of growth and sustainable revenue
generation.
In line with this export strategy, Rua also made significant progress internationally with
products for sale in three high-growth markets.
As the only New Zealand-based medicinal cannabis business with a focus on delivering
social impact, in FY24 Rua extended its commitment to its impact programmes for
residents of Tairawhiti.
Delivering on strategy
Following changes to Rua’s management and Board in FY23, including the appointment
of Paul Naske as Chief Executive Officer, the business’ leadership has remained stable
and unchanged in FY24.
Speaking about Rua’s differentiated strategy, Board Chair Anna Stove explains “In the
previous reporting year, our priority was refining our new commercial model and export-
led strategy. Thanks to Paul’s strong leadership, the management team and Board are
now fully aligned and committed to its successful execution.
“We have made significant progress in advancing Rua’s genetics, expanding distribution
channels, and securing key supplier partnerships in growth markets including Germany,
Australia and the United Kingdom – critical milestones that have built a strong
foundation to achieve sustainable revenue in FY25 and beyond,” says Ms Stove.
Financial results
Rua’s loss before tax for the year to 30 June 2024 was $13.72m (FY23 $5.96m). This loss
is in line with expectations and is primarily because of one-off impairments to goodwill,
supplier contracts and other assets, the majority of which was reported at the 31
December 2023 half-year report. This is non-cash in nature and does not affect the
groups cash flows or operational liquidity. The loss before these impairments was
$4.50m.
Revenue was recorded as $0.32m (FY23 $6.53m). FY23 revenue was significantly higher
due to a $5.85m non-cash fair value gain as a result of a reduction in the payment
liability to ex-Zalm shareholders. Revenue from customers was $86k (FY23 $358k). This

reduction is a result of lack of sales in Germany for FY23 following the partial recall of
product due to poor quality from suppliers, which has now been addressed.
Rua has released unaudited financial statements as the statements are still in the
process of being audited. The delay in the release of audited financial statements is a
result of the timing of the previously announced building sale process, the Boards review
of the business’ cash requirements and ongoing discussions with major shareholders in
regard to further funding. For further information and context please refer to the Going
Concern Disclosure ( Note 2(f)) in the Financial Statements. We will release audited
financial statements within the Annual Report that is expected by the end of September.
Germany
During FY24, Rua further strengthened its distribution channel with experienced partner
Nimbus Health by extending its contract for an additional three years and widening its
scope to include other European markets.
In April 2024 new regulations in Germany were implemented that reclassified medicinal
cannabis, removing its narcotic status and allowing it to be easily prescribed alongside
other pharmaceuticals. 
Rua Chief Executive Officer Paul Naske says, “With these significant regulatory changes
and Rua’s strong partnership with Nimbus Health, we anticipate an increase in revenue
in the German market in the coming year.”
Australia
In FY24, Rua solidified its presence in the Australian market, generating its first revenues
and establishing strong sales and distribution channels for a wide range of products.

“Australia is one of the world’s largest medicinal cannabis markets and is estimated to be
worth around $450 million, with over 300 prescribers. We now have products available
through four distributors nationwide, significantly extending our reach in this rapidly
expanding market.

“With a Chief of Sales and Marketing based in Australia, our in-market presence has
accelerated, enabling us to build strong relationships with both distributors and
prescribers,” says Mr Naske.

Rua has recently launched a new product into Australia containing legacy New Zealand
genetics. This is the first market where the business has established both distribution and
genetics, aligning with its strategic priorities.  

United Kingdom
The United Kingdom is an exciting new market for Rua to establish itself and is widely
considered to be an emerging growth market for medicinal cannabis.
In December 2023, Rua signed a two-year agreement with Target Healthcare, a
pharmaceutical distribution company specialising in unlicenced medicines.
“With a distribution agreement now secured, we have been focused on establishing Rua’s
brand and presence in the U.K. and expect to launch a portfolio of products into the
market in the latter part of 2024,” says Mr Naske.
Social Impact
Rua’s Compassionate Access Programme shares the benefits of medicinal cannabis with
those in the Te Tairāwhiti community who can most benefit. During FY24 the
Programme has grown from 30 patients per month to 52 patients per month as a result
of support from Trust Tairawhiti, suppliers and donations. The programme ensures that
patients who meet specific criteria, have access to fully subsidised medicinal cannabis
products.
In addition to the Compassionate Access Programme, Rua has a S cholarship Programme
designed to celebrate the aspirations of local rangatahi and help drive meaningful long
term social and economic impact in the communities of Tairāwhiti. With the support of
Rua Bioscience and Trust Tairāwhiti, 13 students were awarded undergraduate
scholarships in FY24.
“At Rua, we are deeply committed to giving back to our community by developing
impactful programs like these. As Rua continues to prosper, so does our ability to make a
difference. We are proud of the growth of our Compassionate Access Programme this
year, which has enabled more people across Tairawhiti to benefit from medicinal
cannabis.
“Our focus on supporting rangatahi—the next generation—reflects our core values,
deeply rooted in enhancing the long-term prosperity of our region. We are excited to
continue expanding these initiatives and to watch our young people thrive,” concluded
Mr. Naske.

Outlook statement
The focus of the business of FY25 will be on accelerating the revenue streams in the four
key markets we have established in Germany, Australia, United Kingdom and Aotearoa
New Zealand.
We expect revenue from customers in FY25 will be significantly higher than FY24 as the
sales in July 2024 have already exceeded the full year revenue of FY24.


ENDS



For more information, please visit www.ruabio.com or contact:

Paul Naske
Chief Executive Officer
+64 (21) 445 154
www.ruabio.com

---

Rua Bioscience Limited
Consolidated Financial Statements
Unaudited
For the year ended
30 June 2024

Rua Bioscience Limited
Contents
Company Directory
3
ConsolidatedStatement of Profit or Loss and Other Comprehensive
Income(unaudited)
4
Consolidated Statement of Changes in Equity(unaudited)5
Consolidated Statement of Financial Position(unaudited)
6
Consolidated Statement of Cash Flows(unaudited)
7
Notes forming part of theConsolidatedFinancial
Statements(unaudited)
8 - 46

3
Company Directory
For the year ended 30 June 2024
Country of incorporation of company:New Zealand
Company Number:6484092
Legal form:NZ Limited Company
Principal activities:PharmaceuticalDistribution
Registered office:1 Commerce Place
Awapuni
Gisborne
Directors:Anna STOVE–Chair
Panapa EHAU
Teresa FARAC-CIPRIAN
Tony BARCLAY
Auditor:PricewaterhouseCoopers
Bankers:Kiwibank
ANZ
Solicitors:Lowndes Jordan

4
Rua Bioscience Limited
Consolidated Statement of Profit or Loss
and Other Comprehensive Income (unaudited)
For the year ended 30 June 2024
Note
2024
2023
(unaudited)
$
(audited)
$
Revenue from contracts with customers585,837357,675
Other income6235,841323,905
Fair value gains4-5,851,032
Total revenue andotherincome321,6786,532,612
Changes in inventories of finished goods7(204,143)(339,551)
Research and development costs7(1,176,153)(1,587,704)
Impairmentof intangible assets14(8,533,342)(4,726,907)
Impairment of property, plant and equipment12(153,623)(841,811)
Impairment of assets held for sale24(527,010)-
Other expenses7(3,554,710)(5,178,195)
Total expenses before operating loss(14,148,981)(12,674,168)
Operatinglossbefore net financing income(13,827,303)(6,141,556)
Interest income125,423202,129
Interest expense-leases(16,874)(19,079)
Net finance income108,549183,050
Lossbefore tax(13,718,754)(5,958,506)
Income taxexpense8-(774)
Lossafter tax(13,718,754)(5,959,280)
Other comprehensive income:
Items that may be reclassified to profit or loss:
Exchange gains arising on translation of foreign operations(6,334)38
Other comprehensive income for the year, net of tax(6,334)38
Total comprehensive loss for the year attributable to
shareholders
(13,725,088)(5,959,242)
Earnings per share attributable to the
ordinary equity holders of the Company
Loss from operations
Basic ($)
10(0.09)(0.04)
Diluted ($)
10(0.09)(0.04)
The above statements should be read in conjunction with the accompanying notes.

5
Rua Bioscience Limited
Consolidated Statement of Changes in Equity (unaudited)
For the year ended 30 June 2024
NoteShare
Foreign
currency
translationShare optionAccumulatedTotal
capitalreservereservelossesequity
$$$$$
Opening balance at 1 July 2022(audited)
41,891,677
-141,686
(17,835,272)24,198,091
Total comprehensive loss for the year
-Loss for the year
-
--
(5,959,280)(5,959,280)
-Other comprehensive income-38--38
Total comprehensive loss for the year-38-(5,959,280)(5,959,242)
Transactions with owners
-Issue of share capital201,790,800---1,790,800
-Employee share options expense23--90,616-90,616
-Share options vested and exercised2320,240-(20,240)--
Total transactions with owners1,811,040-70,376-1,881,416
Balance at 30 June 2023(audited)43,702,717
38212,062
(23,794,552)20,120,265
Opening balance at 1 July 202343,702,71738212,062(23,794,552)20,120,265
Total comprehensive loss for the year
-Loss for the year---(13,718,754)(13,718,754)
-Othercomprehensive income-(6,334)--(6,334)
Total comprehensive loss for the year-(6,334)-(13,718,754)(13,725,088)
Transactions with owners
-Issue of share capital-----
-Employee share options expense23--371,481-371,481
-Share options vested andexercised20,23250,219-(250,219)--
Total transactions with owners250,219-121,262-371,481
Balance at 30 June 2024(unaudited)
43,952,936
(6,296)333,324
(37,513,306)6,766,658
The above statements should be read in conjunction with the accompanying notes.

6
Rua Bioscience Limited
Consolidated Statement of Financial Position (unaudited)
As at 30 June 2024
Note20242023
(unaudited)
$
(audited)
$
Current assets
Cash and cash equivalents4
895,1312,529,338
Trade and other receivables16
276,608862,991
Prepayments17
487,907163,361
Investments4
-2,032,055
Inventory11
277,53414,319
Assets in disposal groups held for sale24
879,781-
Total current assets
2,816,9615,602,064
Non-current assets
Property, plant and equipment12
2,517,6994,438,681
Goodwill 13,14
2,194,94710,448,082
Intangible assets14
-286,168
Right-of-use lease assets15
135,176100,577
Other receivables16
75,00075,000
Total non-current assets
4,922,82215,348,508
Total assets
7,739,78320,950,572
Current liabilities
Trade and other payables18
554,237522,544
Employee benefit liabilities19195,902180,083
Lease liabilities4,1548,71346,722
Deferred grant income69,21813,103
Liabilities in disposal groups held for sale245,988-
Total current liabilities
874,058762,452
Non-current liabilities
Lease liabilities4,1599,06767,855
Total non-current liabilities
99,06767,855
Total liabilities
973,125830,307
Net assets6,766,658 20,120,265
Equity
Share capital20
43,952,93643,702,717
Accumulated losses
(37,513,306)(23,794,552)
Foreign currency translation reserve
(6,296)38
Share option reserve
333,324212,062
Total equity6,766,65820,120,265
The above statements should be read in conjunction with the accompanying notes.

7
Rua Bioscience Limited
Consolidated Statement of Cash Flows (unaudited)
For the year ended 30 June 2024
Note20242023
(unaudited)
$
(audited)
$
Cash flows from operating activities
Receipts from customers170,015278,085
Grant income received755,237104,378
Payments to suppliers and employees(4,661,731)(6,302,684)
Net cashinflows/(outflows) from operating activities9(3,736,479)(5,920,221)
Cash flows from Investing activities
Interest income157,475211,567
Proceeds from sale of plant and equipment51,15134,854
Proceeds from maturinginvestments3,500,00013,000,000
Proceeds from contingent consideration receivable-500,000
Investment deposits made(1,500,000)(7,000,000)
Purchase of property, plant and equipment(1,208)(73,772)
Net cashinflows/(outflows) from investing activities2,207,4186,672,649
Cash flows from financing activities
Principal elements of lease payments(77,854)(101,296)
Interest paid(16,925)(19,079)
Net cashinflows/(outflows) from financing activities(94,779)(120,375)
Net increase/(decrease) in cash and cash equivalents(1,623,840)632,053
Cash and cash equivalents at beginning of year2,529,3381,897,285
Exchange (loss)/gains on cash andcash equivalents(10,367)-
Cash and cash equivalents at end of year4895,1312,529,338
The above statements should be read in conjunction with the accompanying notes.

8
Rua Bioscience Limited
Notes forming part of the consolidated financial statements (unaudited)
For the year ended 30 June 2024
1. Reporting Entity
The consolidated financial statements comprise the results of Rua Bioscience Limited and its
subsidiaries (together, “the Group”).
Rua Bioscience Limited (“the Company”) is a company incorporated and domiciled in New Zealand
and registered under the Companies Act 1993. The address of the Company’s registered office and
principal place of business is 1 Commerce Place, Awapuni, Gisborne.
The Company is principally engaged in the business of research and development, and
pharmaceutical distribution and marketing.
2. Basis of preparation
(a)Statement of compliance
The consolidated financial statements have been prepared in accordance with New Zealand
Generally Accepted Accounting Practice (NZ GAAP), being in accordance with New Zealand
Equivalents to International Financial Reporting Standards (NZ IFRS) and other New Zealand
accounting standards and authoritative notices that are applicable to entities that apply NZ IFRS
and International Financial Reporting Standards Accounting Standards (IFRS Accounting
Standards). They comply with interpretations issued by the IFRS Interpretations Committee (IFRS
IC) applicable to companies reporting under IFRS accounting standards. The consolidated financial
statements have also been prepared in accordance with the requirements of the Companies Act
1993, the Financial Markets Conduct Act 2013 and the Main Board/Debt Market Listing Rules of
NZX Limited.
The Group is a for-profit entity for the purposes of complying with NZ GAAP.
These consolidated financial statements include non-GAAP financial measures that are not
prepared in accordance with NZ IFRS. The Group presents Net Tangible Assets, in Note 26. The
Group believes that this non-GAAP measure provides useful information to readers, as this is a
required disclosure under the NZX Listing Rules, but it should not be viewed in isolation, nor
considered as a substitute for measures reported in accordance with NZ IFRS. Non-GAAP measures
as reported by the Group may not be comparable to similarly titled amounts reported by other
companies.
The consolidated financial statements are presented in New Zealand dollars ($), which is also the
Company’s functional currency. All financial information presented has been rounded to the
nearest dollar.
(b)Material accounting policy information
Material accounting policies have been disclosed alongside the related notes in the consolidated
financial statements.
(c)Basis of measurement
The consolidated financial statements have been prepared on a historical cost basis, except for
the items detailed in note 2(g).

9
Rua Bioscience Limited
Notes forming part of the consolidated financial statements (unaudited)
For the year ended 30 June 2024
2. Basis of preparation(continued)
(d)New standards, interpretations and amendments
(i)New standards mandatorily effective during the period
New standards that have become mandatorily effective in the annual consolidated financial
statements for the year ended 30 June 2024,
NZ IFRS 17 Insurance Contracts;
Disclosure of Accounting Policies (Amendments to NZ IAS 1 Presentation of
Financial Statements and IFRS Practice Statement 2 Making Materiality
Judgements);
Definition of Accounting Estimates (Amendments to NZ IAS 8 Accounting Policies,
Changes in Accounting Estimates and Errors);
Deferred Tax related to Assets and Liabilities arising from a Single Transaction
(Amendments to NZ IAS 12 Income Taxes); and
International Tax Reform – Pillar Two Model Rules (Amendment to NZ IAS 12
Income Taxes) (effective from 10 August 2023).
Except for the standards detailed below, none of these new standards effective during the
period have had a significant effect on the Group.
Disclosure of Accounting Policies (Amendments to NZ IAS 1 Presentation of Financial
Statements and IFRS Practice Statement 2 Making Materiality Judgements)
The amendments aim to make accounting policy disclosures more informative by replacing
the requirement to disclose ‘significant accounting policies’ with ‘material accounting policy
information’. The amendments also provide guidance under what circumstance, the
accounting policy information is likely to be considered material and therefore requiring
disclosure.
These amendments have no effect on the measurement or presentation of any items in the
consolidated financial statements of the Group but affect the disclosure of accounting policies
of the Group.

10
Rua Bioscience Limited
Notes forming part of the consolidated financial statements (unaudited)
For the year ended 30 June 2024
2. Basis of preparation(continued)
(d)New standards, interpretations and amendments (continued)
(ii)Issued, but not yet effective
There are a number of standards, amendments to standards, and interpretations which have
been issued that are effective in future accounting periods that the Group has decided not to
adopt early.
The following amendments are effective for the periods beginning on or after 1 January 2024:
Liability in a Sale and Leaseback (Amendments to NZ IFRS 16 Leases);
Classification of Liabilities as Current or Non-Current (Amendments to NZ IAS 1
Presentation of Financial Statements);
Non-current Liabilities with Covenants (Amendments to NZ IAS 1 Presentation of
Financial Statements);
Supplier Finance Arrangements (Amendments to NZ IAS 7 Statement of Cash Flows
and NZ IFRS 7 Financial Instruments: Disclosures); and
Disclosure of Fees for Audit Firms' Services (Amendments to FRS 44)
The following amendments are effective for the periods beginning 1 January 2025 and
onwards:
Lack of Exchangeability (Amendments to NZ IAS 21 The Effects of Changes in
Foreign Exchange Rates) (effective 1 January 2025)
Amendments to the Classification and Measurement of Financial Instruments
(Amendments to NZ IFRS 9 and NZ IFRS 7) (effective 1 January 2026)
NZ IFRS 18Presentation and Disclosure of Financial Statements (effective 1
January 2027)
The Group does not believe that the amendments to NZ IAS 1 will have a significant impact
as the Group is not party to significant non-current borrowings. In addition, the Group does
not hold any financial instruments which would be significantly impacted by the amendments
to NZ IFRS 9 and NZ IFRS 7.
The Group has not yet assessed the impact of NZ IFRS 18Presentation and Disclosure in
Financial Statements. It is expected that the standard will impact the presentation of the
financial statements.
Besides the items above, the Group does not expect these new and amended standards to
have a material impact on the Group.
(e)Accounting estimates and judgements made
The preparation of the consolidated financial statements, in conformity with NZ IFRS, requires
management to make judgements, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual
results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an on-going basis, with revisions to
accounting estimates recognised in the period in which the estimates are revised and in any future
periods affected.

11
Rua Bioscience Limited
Notes forming part of the consolidated financial statements (unaudited)
For the year ended 30 June 2024
2. Basis of preparation(continued)
(e)Accounting estimates and judgements made (continued)
Details of significant judgements and estimates made by management in the current period
include:
Judgements
−Recognition (or not) of deferred tax assets related to carried forward tax losses (note 8).
−Useful life of externally acquired intangible assets (note 14).
−Recognition of research and development tax credits and research and development expenses
(notes 6, note 7 and note 16).
−Determination of non-current assets held for sale (note 24).
−Preparation of the financial statements on a going concern basis (note 2(f)).
Estimates
−Assessment of impairment for non-financial assets (note 12 and note 14 and note 24).
The Group assess the potential climate related risks associated with the location of its facilities
and other key operations in the regions it operates in and considers that there are no material
impacts on the current consolidated financial statements.
(f)Going Concern
The consolidated condensed financial statements have been prepared on the going concern
basis, which assumes that the Group will continue to be able to meet its liabilities as they fall
due for a period of at least 12 months from the date of signing these consolidated financial
statements.
Given the Group’s net operating loss of $13,718,754 and net operating cash outflow of
$3,736,479 for the year ended 30 June 2024, in addition to its reduced liquid net asset position,
the Board and management have prepared operating cash flow forecasts for the next 12 months.
This forecast is predicated on a number of significant funding events, including the sale of its
facility and additional shareholder contributions and also includes key revenue milestones and,
should these targets not be met, the Group will not have sufficient cash to meet its minimum
expenditure commitments and support its current levels of activity.

12
Rua Bioscience Limited
Notes forming part of the consolidated financial statements (unaudited)
For the year ended 30 June 2024
2. Basis of preparation (continued)
(f)Going Concern (continued)
Accordingly, the Directors have evaluated the following factors in determining that the going
concern assumption is appropriate:
(i)Subsequent to reporting date, the Group has entered into an agreement with a third
party for the sale of its Gisborne facility which includes the leasehold buildings held as
available for sale (refer to note 24) in addition to manufacturing and extraction
equipment. The final agreed selling price is $1,300,000.
(ii)Management and the Board have engaged in dialogue with the Group’s existing
shareholders to secure additional funding to meet operational cashflow requirements.
(iii)The Group’s operational forecasts include assumptions regarding a number of
opportunities in key markets. As at the date of signing these financial statements, the
Group has achieved the following:
-Successfully launched an additional product into Germany, a market in which it has
had positive past sales revenues in;
-Introduced New Zealand grown genetics into products sold in Australia; and
-Obtained approval for the introduction of new products into the New Zealand
market and established sales revenues for one product.
The Group has also forecast a number of significant operating milestones over the
coming 12 months including:
-Product sales into the UK market under existing distribution agreements;
-Continued expansion of product offerings in Australia, Germany and New Zealand;
and
-Establishment of Rua genetics in several countries including:
oIn Canada under license with Apollo Green; and
oOngoing trial crops in both Australia and Portugal.
These will further the Group’s plans to achieve a sustainable operating model in line
with its projections.

13
Rua Bioscience Limited
Notes forming part of the consolidated financial statements (unaudited)
For the year ended 30 June 2024
2. Basis of preparation (continued)
(f)Going Concern (continued)
The Directors believe that the Group will be sufficiently successful in achieving the above, and
on this basis, are of the view that it is appropriate to continue to adopt the going concern
assumption in the preparation of these consolidated financial statements.
In the immediate term, the Group is dependent on cash proceeds from the sale of its facility and
committed shareholder support and should the expected funding be less than expected, the
Group may be unable to manage its minimum cash expenditure commitments and enact on its
forecasted revenue targets as outlined above.
Furthermore, should the Group be unsuccessful in achieving its revenue forecasts, or if actual
revenue growth is lower than projected, the proceeds from the sale of the facility or the planned
capital contributions alone may be insufficient to accommodate the Group’s operational
demands and the Group may be unable to realise its assets and discharge its liabilities in the
normal course of business. As such, there is a material uncertainty that may cast significant
doubt on the Group’s ability to continue as a going concern.
Accordingly, these consolidated financial statements do not include any adjustments relating to
the classification and recoverability of recorded asset amounts or to the amounts and
classification of liabilities that may be necessary should the Group be unable to continue as a
going concern.
(g) Fair value measurement
The fair value of certain assets and liabilities included in the Group’s consolidated financial
statements is disclosed.
Determining the fair value of these assets and liabilities utilises market observable inputs and
data as far as possible.
For more detailed information in relation to the fair value measurement of the items above,
please refer to the applicable notes.
-Borrowings, disclosure of fair value (note 4)
-Financial assets and liabilities at amortised cost, disclosure of fair value (note 4)
-Assets in disposal groups held for sale (note 24)
-Impairment of non-financial assets (notes 12 and 24)

14
Rua Bioscience Limited
Notes forming part of the consolidated financial statements (unaudited)
For the year ended 30 June 2024
2. Basis of preparation (continued)
(h) Impairment of non-financial assets and Goodwill
The cash-generating unit to which Goodwill is allocated to is tested for impairment at each
reporting date and, at any other time in which there are indicators of impairment (refer to note
13). For an asset that does not generate largely independent cash inflows, the recoverable amount
is determined for the cash-generating unit to which the asset belongs.
The carrying amounts of the Group’s property, plant and equipment (note 12), intangible assets
(note 14) and right-of-use assets (note 15) are reviewed at each reporting date to determine
whether there is any indication of impairment. If any such indication exists, then the asset’s
recoverable amount is estimated.
An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable
amount (being the higher of value-in-use and fair value less costs of disposal). Impairment losses
directly reduce the carrying amount of assets and are recognised in profit or loss.
3. Segment Reporting
The Group operates in one segment, its primary business being research and development and the
sale of pharmaceutical products in Australia, Germany and New Zealand.
The chief operating decision maker has been identified as the Chief Executive Officer (CEO), as
they make all the key strategic resource allocation decisions related to the Group’s segment.
The Group currently derives revenue from customers through the sale of goods in Australia,
Germany and New Zealand. The Group’s revenues are analysed by geography on the basis of the
jurisdiction in which the goods are sold and have been disaggregated in this way in note 5.

15
Rua Bioscience Limited
Notes forming part of the consolidated financial statements (unaudited)
For the year ended 30 June 2024
4. Financial instruments and Financial Risk Management and Capital Management
This note describes:
(A)The Group’s accounting policies with respect to financial instruments recognised in the
Group’s consolidated financial statements, and detail of those balances.
(B)The nature of the financial risk that the Group is exposed to, and the Group’s objectives,
policies and processes for managing those risks, the methods used to measure them, and
sensitivity analysis to movements in rates (where applicable).
(C)The nature of the Group’s Capital Management policies.
(A)Financial instruments recognised
The Group recognises financial assets and financial liabilities when it becomes party to the
contractual provisions of the financial instrument.
Financial assets
The Group classifies its financial assets depending on the purpose for which the asset was acquired
(i.e. the business model) and the contractual terms of the cash flows.
Amortised cost
These comprise cash and cash equivalents, certain trade and other receivables and term deposit
investments.
Cash and cash equivalents comprise of cash on hand and demand deposits, as well as highly liquid
deposits that are readily convertible to known amounts of cash and which are subject to an
insignificant risk of changes in value, with terms of 90 days or less.
These financial assets are:
−Initially measured at fair value, plus directly attributable transaction costs.
−Subsequently measured at amortised cost using the effective interest rate method, less
provision for impairment. Cash and cash equivalents and investments are held with
“investment grade” financial institutions and are deemed to have no significant increase in
credit risk in terms of impairment.
−Derecognised when the contractual rights to the cash flows from the financial asset expire or
are transferred.

16
Rua Bioscience Limited
Notes forming part of the consolidated financial statements (unaudited)
For the year ended 30 June 2024
4. Financial instruments and Financial Risk Management and Capital Management(continued)
Financial liabilities
The Group classifies its financial liabilities depending on whether (or not) it meets the definition
of a financial liability at fair value.
Financial liabilities at fair value through profit and loss
These comprise contingent consideration recognised in the consolidated statement of financial
position and are carried at fair value. Changes in fair value are recognised in the consolidated
statement of profit or loss and other comprehensive income.
Other financial liabilities at amortised cost
These include trade and other payables and lease liabilities recognised in the consolidated
statement of financial position.
These financial liabilities are:
−Initially measured at fair value, plus directly attributable transaction costs.
−Subsequently measured at amortised cost using the effective interest rate method.
−Derecognised when the contractual obligation to settle the obligation is discharged,
cancelled, or expires.
Categories and fair values of the Group’s financial instruments
2024(unaudited)
Financial
Assets at
Amortised
Cost
Financial
Liabilities
At Amortised
Cost
Total Carrying
Amount
Fair Value
$$$$
Cash andcash equivalents
895,131-895,131(a)
Trade and other receivables
101,163-101,163(a)
Trade payables
-(419,503)(419,503)(a)
Lease liabilities
-(147,780)(147,780)(b)
Total
996,294(567,283)
(a)Due to their short-term nature, the carrying value of these financial instruments approximates their fair value
(b)Not required to be disclosed per NZ IFRS 7.

17
Rua Bioscience Limited
Notes forming part of the consolidated financial statements (unaudited)
For the year ended 30 June 2024
4.Financial instruments and Financial Risk Management and Capital Management(continued)
2023(audited)
Financial Assets
at Amortised
Cost
Financial
Liabilities
At Amortised
Cost
Total Carrying
Amount
Fair
Value
$$$$
Investments
2,032,055-2,032,055(a)
Cash and cash equivalents
2,529,338-2,529,338(a)
Trade and other Receivables
173,620-173,620(a)
Trade payables
-(276,801)(276,801)(a)
Lease liabilities
-(114,577)(114,577)(b)
Total4,735,013(391,378)
(a)Due to their short-term nature, the carrying value of these financial instruments approximates their fair value.
(b)Not required to be disclosed per NZ IFRS 7.
Financial liabilities at fair value through profit or loss relates to contingent consideration from
past business combinations:
Note30 June 2024
(unaudited)
30 June 2023
(audited)
$$
Opening balance-7,641,832
Arising on business combination--
Change in fair value estimate-(5,851,032)
Consideration settled (shares)20-(1,790,800)
Closing balance--
(B)Financial risk management
The Board has overall responsibility for the determination of the Group’s risk management
objectives and policies and, whilst retaining ultimate responsibility for them, it has delegated the
authority for designing and operating processes that ensure the effective implementation of the
objectives and policies to the Group's finance function. The Board receives monthly reports from
the Chief Financial Officer through which it reviews the effectiveness of the processes put in place
and the appropriateness of the objectives and policies it sets. The Group's finance team also review
the risk management policies and processes and report their findings to the Audit, Finance & Risk
Committee.
The overall objective of the Board is to set policies that seek to reduce risk as far as possible
without unduly affecting the Group’s competitiveness and flexibility. Further details regarding
these policies as they relate to the specific financial risks that the Group is exposed to are set out
below:
Through its operations, the Group is exposed to the following financial risks:
(a)Credit risk
(b)Market risk
i.Interest rate risk, and
ii.Foreign exchange risk
(c)Liquidity risk.

18
Rua Bioscience Limited
Notes forming part of the consolidated financial statements (unaudited)
For the year ended 30 June 2024
4.Financial instruments and Financial Risk Management and Capital Management(continued)
(a)Credit risk
Credit risk is the risk of financial loss to the Group if a counterparty to a financial asset fails to
meet their contractual obligations. The Group’s exposure to credit risk is represented by the
carrying amount of cash and cash equivalents, trade and other receivables and investments.
The Group only holds cash and cash equivalents and investments with financial institutions that
are independently determined credit ratings of "A" or higher.
If wholesale customers are independently rated, these ratings are used. Otherwise, if there is no
independent rating, risk control assesses the credit quality of the customer, taking into account
its financial position, past experience and other factors. Individual risk limits are set based on
internal or external ratings in accordance with limits set by the board. The compliance with credit
limits by wholesale customers is regularly monitored by line management.
The Group has an Audit, Finance & Risk Committee that monitors credit risk as part of its wider
duties.
Cash and cash equivalents and investments held with financial institutions are presented in the
table below:
30 June 2024(unaudited)
Credit
rating
(a)
Cash and cash
equivalents
InvestmentsTotal
$$$
KiwibankA1, AA715,905-715,905
ANZAA-, Aa2179,226179,226
Total895,131-895,131
30 June 2023(audited)
Credit
rating
(a)
Cash and cash
equivalents
InvestmentsTotal
$$$
KiwibankA1, AA2,529,3382,032,0554,561,393
Total2,529,3382,032,0554,561,393
(a)Standard & Poor’s, Moody’s, Fitch
Interest rates on interest bearing cash and cash equivalents and investments range between 4.80%
- 5.00% (2023: 1.15% - 5.00%).
Cash and cash equivalents above comprise the following:
20242023
(unaudited)
$
(audited)
$
Cash on hand571,2082,529,338
Demand deposits323,923-
Total cash and cash equivalents895,1312,529,338

19
Rua Bioscience Limited
Notes forming part of the consolidated financial statements (unaudited)
For the year ended 30 June 2024
4.Financial instruments and Financial Risk Management and Capital Management(continued)
(b)Market risk
Market risk arises from the Group’s:
−Use of interest-bearing borrowings (interest rate risk)
−Credit sales and purchases in foreign currencies (foreign currency risk), and
−Prices of key commodity inputs (price risk)
i.Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in market interest rates.
The Group is only exposed to fixed rate interest rates on its interest-bearing liabilities (lease
liabilities).
ii.Foreign exchange risk
The Group is exposed to movements in foreign exchange rates through transactions and balances
denominated in foreign currencies. The Group’s exposures to foreign exchange risk are as follows:
−Sales transactions of $83,588 (2023: $268,207) denominated in foreign currencies, which are
mainly denominated in Australian Dollar (2023: Euro).
−Inventory purchase transactions of $199,094 (2023: $208,222) denominated in foreign
currencies, which are mainly denominated in Australian Dollar amounts.
−Net investments in foreign operations of $(416,445) (2023: $2,457).
The Group has an Audit, Finance & Risk Committee that monitors foreign exchange risk as part of
its wider duties.
There are no open forward exchange contracts at the end of the reporting period (2023: no open
forward exchange contracts).
The net foreign exchange gain recognised for the year was $4,556 (2023: $3,136 loss) (2024: note
6, 2023: note 7).
Sensitivity analysis
The following table presents the Group’s sensitivity from a reasonably possible strengthening or
weakening NZD against foreign currencies, with all other variables held constant.
30 June 2024
(unaudited)
30 June 2023
(audited)
EquityProfitEquityProfit
$$$$
10%strengthening of the NZD6,6855,0135,7277,954
10% weakening of the NZD(6,685)(5,013)(13,564)(18,839)

20
Rua Bioscience Limited
Notes forming part of the consolidated financial statements (unaudited)
For the year ended 30 June 2024
4. Financial instruments-Risk Management(continued)
(c)Liquidity risk
Liquidity risk arises from the Group’s management of working capital. It is the risk that the
Group will encounter difficulty in meeting its financial obligations as they fall due (refer to
note 2(f)).
The Group's policy is to ensure that it will always have sufficient cash to allow it to meet its
liabilities when they become due. To achieve this the Group maintains a monthly forecast on
its future cash position to ensure it can meet financial obligations when they fall due.
The Board receives monthly financial statements which include statements of financial position,
performance, and cash flow, as well as budget/forecast variance reports, to ensure it holds or
will hold cash equivalents to meet its obligations.
The following table sets out the contractual maturities (representing undiscounted contractual
cash-flows) of financial liabilities:
Up to 3BetweenBetweenBetweenOverTotal
Months3 and 121 and 22and 55 years
As at 30 June 2024
(unaudited)
monthsyearyears
$$$$$$
Trade payables419,503----419,503
Lease liabilities21,04844,84759,97648,716-174,587
Total440,55144,84759,97648,716-594,090
As at30 June 2023
(audited)
Trade payables276,801----276,801
Lease liabilities13,67439,46321,09945,00011,250130,486
Total290,47539,46321,09945,00011,250407,287
(C)Capital Management
The Group’s objectives when managing capital are to safeguard the entity's ability to continue
as a going concern (refer to note 2(f)), so that it can continue to fund activities for the purposes
of deriving sustainable returns to its shareholders and other stakeholders.
The Group’s capital structure consists of Equity of the Group (comprising issued capital and
retained earnings). The Group is not subject to any externally imposed capital requirements.
The Board continually reviews the capital structure of the Group. As part of this review, the
Board considers the availability and cost of capital and the risks associated therein.

21
Rua Bioscience Limited
Notes forming part of the consolidated financial statements (unaudited)
For the year ended 30 June 2024
5. Revenue from contracts with customers
The Group recognises revenue from the sale of pharmaceutical goods at a point-in-time when
control of the goods has transferred to the customer. This is typically upon physical delivery of
the goods to the customer’s premise. The transaction price is set by the Group and is as per
the agreed contracts in place with customers.
Where goods are sold through distributors, judgement is required to assess which party the
Group passes control of the goods such that they are considered the Group’s “customer” for
accounting purposes (i.e., the distributer, or, the end-purchaser).
Consideration is given to which party has the substantive: (i) responsibility to fulfil the promise
to provide goods (including obligations with respect to any returns); (ii) inventory risk over the
goods; and, (iii) Rights to set pricing.
Typically, distributors in Australia and Germany are considered to be the Group’s agents.
Distributors in New Zealand are considered to be the Group’s customers.
20242023
(unaudited)
$
(audited)
$
Performance obligations satisfied at a point-in-time
Sale of goods–New Zealand2,24989,467
Sale of goods–Australia83,588-
Sale of goods-Germany-268,208
Total Revenue fromContracts with Customers85,837357,675

22
Rua Bioscience Limited
Notes forming part of the consolidated financial statements (unaudited)
For the year ended 30 June 2024
6. Other income
(i)Government grants
The Group recognises government grants as other income rather than reducing the costs that
they are intended to compensate.
The Group primarily receives government grants from the following entities:
-Inland Revenue Department (IRD), in the form of R&D tax incentive credits; and
-New Zealand Trade and Enterprise (NZTE).
R&D tax incentive credits are accounted for as government grant income as opposed to income
tax credits as the benefit is independent of the taxable profit or tax liability where the Group
is eligible for a cash refund; specific conditions exist for the Group, the R&D activities and the
expenditure to be eligible for the tax credits; and the tax credits are not structured as an
additional deduction in computing taxable profit.
The Group has reasonable assurance at the reporting date that the R&D tax incentive will be
received and all attached conditions will be complied with. The Group expects to receive the
tax credit when the return is filed subsequent to the end of the reporting period.
The Group also receives grant funding from NZTE in relation to promotion and export activities
which it undertakes. Typically, grant funding is approved and paid only upon proof of eligible
expenditure.
Other income streams recognised by the Group include:
20242023
(unaudited)
$
(audited)
$
Research and development grant income129,886289,204
NZTE grant income65,071-
Other government grants26,524-
Total government grant income221,481289,204
Gain onsale of property, plant and equipment772-
Net foreign exchange gains4,556-
Gain on early termination of leases-13,096
Other Income9,03221,605
Total other income235,841323,905

23
Rua Bioscience Limited
Notes forming part of the consolidated financial statements (unaudited)
For the year ended 30 June 2024
7. Expenses
20242023
Note(unaudited)
$
(audited)
$
Specific expenses included in operating loss before
net financing costs for the year:
Cultivation costs456,173520,011
Extraction and manufacturing25,899437,849
Changes in inventories of finished goods and
work in progress
11204,143339,551
Impairment expense12, 14, 249,213,9755,568,718
Accommodation and travel78,296116,300
Communications133,55785,002
Depreciation of property, plant and equipment331,527580,764
Depreciation of right-of-use lease assets63,189101,260
Distributionexpenses27,123-
Amortisation–intangible assets5,1062,960
Direct research and development expenses*46,168290,324
General149,785275,238
Professional services1,207,0401,009,625
I Insurance180,463157,050
Motor vehicle expenses40,17839,890
Charitable expenses48,69457,417
Licenses45,55651,324
Office expenses32,86568,690
Selling and marketing438,955935,047
Employee benefit expense1,420,2892,043,766
Foreignexchange loss-3,136
14,148,98112,683,922
* excludes cultivation, extraction and depreciation and other general overheads costs associated with research and
development activities.
Included in the above:
Employee benefit expense
-Short term benefits (wages and salaries)1,014,7731,869,596
-Defined contribution plan34,03583,554
-Share-based payment expense371,48190,616
Total employee benefit expense1,420,2892,043,766
Research and development expenses
-Direct costs419,770290,324
-Indirect costs756,3831,297,380
Total research and development expenses1,176,1531,587,704

24
Rua Bioscience Limited
Notes forming part of the consolidated financial statements (unaudited)
For the year ended 30 June 2024
7. Expenses(Continued)
(i) Research and development
The Group’s research and development operations are not actively in pursuit of commercial
licenses and as such, the Group does not consider itself to be in the development phase.
Accordingly, all research and development costs are expensed as incurred.
(ii) Fees paid to auditors
Fees paid to auditors include payments to PricewaterhouseCoopers for the following:
20242023
(unaudited)
$
(audited)
$
Audit and review of the financial statements
-Audit of the financial statements142,633135,775
-Review ofhalf year financial statements-30,149
Total fees paid to auditors142,633165,924
8. Income tax
Tax expense/(credit) comprises current and deferred tax.
In determining the amount of current and deferred tax the Group takes into account the
impact of uncertain tax positions and whether additional taxes and interest may be due. The
Group believes that its accruals for tax liabilities are adequate for all open tax years based
on its assessment of many factors, including interpretations of tax law and prior experience.
This assessment relies on estimates and assumptions and may involve a series of judgements
about future events. New information may become available that causes the Group to change
its judgement regarding the adequacy of existing tax liabilities; such changes to tax liabilities
will impact tax expense in the period that such a determination is made.
A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary
differences, to the extent that it is probable that future taxable profits will be available
against which they can be utilised. Deferred tax assets are reviewed at each reporting date
and are reduced to the extent that it is no longer probable that the related tax benefit will
be realised.

25
Rua Bioscience Limited
Notes forming part of the consolidated financial statements (unaudited)
For the year ended 30 June 2024
8. Income Tax(continued)
(i)Income tax recognised in profit or loss
The income tax expense/(credit) recognised for the year includes current and deferred tax as
presented below:
20242023
(unaudited)
$
(audited)
$
Current tax on profits for the year-774
Total current tax-774
Origination and reversal of temporary differences(167,282)(1,351,212)
Prior year tax losses not recognised167,2821,351,212
Prior period adjustments--
Total deferred taxexpense--
Total income taxexpense-774
(ii)Reconciliation of income tax expense
The reconciliation of income tax expense is presented below:
20242023
(unaudited)
$
(audited)
$
Loss before income tax expense(13,718,754)(5,958,506)
Taxexpense/(income) @28%(3,841,251)(1,668,382)
Add/(less) reconciling items
-Expenses not deductible for tax purposes2,629,70022,428
-Non-assessable income(42,436)(1,704,973)
-Tax losses not recognised for deferred tax1,253,9873,351,701
-Prior period adjustments--
Total income tax expense-774
(iii)Imputation credits
The Company has $11,789 of imputation credits as at 30 June 2024 (2023: $769,357).
(iv)Deferred tax
Deferred tax is calculated in full on temporary differences under the liability method using a
tax rate of 28%.
Significant management judgement has been exercised to determine that future taxable
profits for the Group are beyond a reliable forecast horizon and that no net deferred tax asset
should be recognised.
An amount of deferred tax asset of $7,911,205 (2023: $6,664,656) has not been recognised.
The unrecognised deferred tax asset is comprised of tax losses of $7,865,566 (2023:
$6,451,736) and other temporary differences of $45,639 (2023: $212,920

26
Rua Bioscience Limited
Notes forming part of the consolidated financial statements (unaudited)
For the year ended 30 June 2024
8. Tax expense(continued)
(iv)Deferred tax (continued)
Details of the deferred tax asset and liability amounts recognised in profit or loss are as follows:
Employee
entitlements
Property,
plant and
equipment
AccrualsIntangible
assets
Lease
liabilities
Right-of-
use assets
Share-based
payments –
equity settled
Carried
forward
tax losses
Total
$$$$$$$$$
As at 1 July 2022(audited)44,908(17,310)-(1,404,490)230,720(223,097)18,0571,351,212-
Amounts recognised
-In profit or loss(16,404)25,527-1,325,465(198,638)194,93520,327(1,351,212)-
-Arising on business
combinations-
-------
-In OCI--------
At 30 June 2023(audited)28,5048,217-(79,025)32,082(28,162)38,384--
As at 1 July 2023(audited)28,5048,217-(79,025)32,082(28,162)38,384--
Amounts recognised
-In profit or loss(28,504)(6,099)(1,927)79,02510,973(15,084)(38,384)--
-Arising on business
combinations
--------
-In OCI--------
At 30 June 2024(unaudited)-2,118(1,927)-43,055(43,246)---

27
Rua Bioscience Limited
Notes forming part of the consolidated financial statements (unaudited)
For the year ended 30 June 2024
9. Notes supporting statement of cash flows
(i) Reconciliation of net operating cash flows to profit/loss
20242023
(unaudited)
$
(audited)
$
Net loss for the year(13,718,754)(5,959,280)
Adjustments for non-cash and non-operating activity items:
-
Add back: Depreciation–Property, Plant &
Equipment
(3)
331,526580,764
-Add back: Depreciation–RoU lease asset
(3)
63,171101,265
-Add back:Amortisation–Intangibleasset5,1062,960
-Add back:Impairment expense9,213,9755,568,720
-Deduct: Gain on sale of Property, Plant & Equipment(771)-
-Add back:Loss on sale ofProperty, Plant & Equipment-11,347
-Deduct: Gain on early termination of leases-(13,199)
-Add back:Share-based payment expense371,48190,616
-Add back: Interest expense16,92519,079
-Deduct: Interest income(125,420)(202,129)
-Addback:Cost of goods given away under CAS-52,268
-Deduct: Fair value gain on contingent consideration-(5,851,032)
9,875,993360,659
Movements in working capital:
-(Increase)/decrease in other receivables
(1)
589,469(292,629)
-(Increase)/decrease in prepayments(320,655)3,160
-(Increase)/decrease in inventories(260,810)152,217
-Increase/(decrease) in trade and other payables
(2)
26,59893,763
-Increase/(decrease) in contract liabilities-(2,062)
-Increase/(decrease) in employee benefit liabilities15,565(279,652)
-Increase/(decrease) in deferred grant income56,1153,603
106,282(321,600)
Net cash outflows from operating activities(3,736,479)(5,920,221)
(1)
Excludes accruals for interest income (investing activity)
(2)
Excludes accruals for interest expense (financing activity), and payables related to property, plant & equipment
(investing activity)
(3)
Depreciation of $nil (2023: $5,790) and amortisation of $5,106 (2023: $3,583) related to building facilities, plant and
equipment and intangible assets used to manufacture and procure is included in changes in inventories of finished
goods and work in progress.

28
Rua Bioscience Limited
Notes forming part of the consolidated financial statements (unaudited)
For the year ended 30 June 2024
9. Notes supporting statement of cash flows(continued)
(ii) Changes in the Group’s liabilities arising from financing activities (cash and non-cash)
30 June 2024
(unaudited)
NON-CASHNON-CASHNON-CASHCASH
OpeningNew leasesLease
remeasurements
Transferred
to disposal
groups
PaymentClosing
$$$$$$
Lease
liabilities
114,577116,514529(5,988)(77,852)147,780
114,577116,514529(5,988)(77,852)147,780
30 June 2023
(audited)
NON-CASHNON-CASHNON-CASHCASH
OpeningNew
leases
Lease
remeasurements
Transferred
to disposal
groups
PaymentClosing
$$$$$$
Lease
liabilities824,002-(608,129)-(101,296)114,577
824,002-(608,129)-(101,296)114,577

29
Rua Bioscience Limited
Notes forming part of the consolidated financial statements (unaudited)
For the year ended 30 June 2024
10. Earnings per share
In both years, the Group has not adjusted the weighted average number of shares used in
diluted EPS to reflect the impact of outstanding share-options granted, because as the Group is
loss-making, the impact of the outstanding share options granted is “anti-dilutive” (i.e.
decreases the loss per share).
20242023
Numerator(unaudited)
$
(audited)
$
(Loss) for the year and earnings (basic and diluted EPS)(13,725,088)(5,959,280)
20242023
Denominator(unaudited)
No. shares
(audited)
No. shares
Weighted average number of shares (basic and diluted EPS)
158,264,526153,728,201
11. Inventory
Inventories are recognised at the lower of cost and net realisable value. Cost comprises all costs
of purchase, costs of conversion and other costs incurred in bringing the inventories to their
present location and condition. All inventories are held at their net realisable value at reporting
date.
Inventories are measured on a first-in-first-out basis to determine the cost of ordinarily
interchangeable items.
20242023
(unaudited)
$
(audited)
$
Finished Goods277,53414,319
Total277,53414,319
Amounts recognised in profit or loss
Inventories recognised as an expense during the year amounted to $61,350 (2023: $242,285).
The Group reported write-downs of inventory to net realisable value of $142,793 (2023:
$97,266) in the consolidated statement of profit or loss and other comprehensive income.

30
Rua Bioscience Limited
Notes forming part of the consolidated financial statements (unaudited)
For the year ended 30 June 2024
12. Property, plant and equipment
Property, plant and equipment are stated at historical cost less any accumulated depreciation
and impairment losses. Costs includes expenditure directly attributable to the acquisition of
assets.
Depreciation is calculated on a diminishing value basis over the estimated useful life of the
asset based on estimates by management. Assets' estimated useful life are reassessed annually.
The following estimated depreciation rates have been used:
−Buildings and fitout 2% to 50% (2023: 2% to 50%)
−Cultivation Containers 10%(2023: 10%)
−Office Equipment 13% to 67%(2023: 13% to 67%)
−Plant and Equipment 8% to 100%(2023: 8% to 100%)
−Vehicles 13% to 40%(2023: 13% - 40%)
Impairment
The plant and equipment was also written down to its recoverable amount of $400,000 (2023:
$517,040), which was determined in reference to the fair value less costs of disposal of the
various assets. The level 3 fair value of these assets was derived using the sales comparison
approach. The key input under this approach was the recent observable selling prices for assets
of similar nature, adjusted for condition and location.

31
Rua Bioscience Limited
Notes forming part of the consolidated financial statements (unaudited)
For the year ended 30 June 2024
12. Property, plant and equipment(continued)
Note
Buildings
and fitout
Cultivation
Containers
Office
Equipment
Plant and
equipment
VehiclesCapital
works
Total
Year ended 30 June 2024$$$$$$$
Opening net book value(unaudited)3,358,327104,65277,307854,95343,442-4,438,681
Additions1,208-----1,208
Depreciation charge(181,262)(10,465)(12,654)(116,879)(10,267)-(331,527)
Impairment charge---(153,623)--(153,623)
Disposals--(3,860)(40,358)(5,305)-(49,523)
Classified as held for sale24(1,387,517)-----(1,387,517)
Closing net book value(unaudited)1,790,75694,18760,793544,09327,870-2,517,699
Cost3,441,979159,196140,6481,783,739160,473-5,686,035
Accumulated impairment(486,230)--(509,204)--(995,434)
Accumulated depreciation(1,164,993)(65,009)(79,855)(730,442)(132,603)-(2,172,902)
Net book amount1,790,75694,18760,793544,09327,870-2,517,699

32
Rua Bioscience Limited
Notes forming part of the consolidated financial statements (unaudited)
For the year ended 30 June 2024
12. Property, plant and equipment(continued)
Buildings
and fitout
Cultivation
Containers
Office
Equipment
Plant and
equipment
VehiclesCapital
works
Total
Year ended 30 June 2023$$$$$$$
Opening net book value(audited)4,146,968116,281112,7771,418,06839,9899,2015,843,284
Additions11,488-8,32124,16920,591-64,569
Depreciation charge(313,899)(11,629)(24,497)(213,600)(17,138)-(580,763)
Impairment charge(486,230)--(355,581)--(841,811)
Disposals--(19,294)(27,304)--(46,598)
Transfers---9,201-(9,201)-
Closing net book value(audited)3,358,327104,65277,307854,95343,442-4,438,681
Cost4,828,288159,196151,4391,874,337181,786-7,195,046
Accumulated impairment(486,230)--(355,581)--(841,811)
Accumulated depreciation(983,731)(54,544)(74,132)(663,803)(138,344)-(1,914,554)
Net book amount3,358,327104,65277,307854,95343,442-4,438,681

33
Rua Bioscience Limited
Notes forming part of the consolidated financial statements (unaudited)
For the year ended 30 June 2024
13. Goodwill
Any impairment recognised against goodwill is not subsequently reversed in future periods where
the recoverable amount of a CGU increases above its carrying amount.
(i) Impairment testing of goodwill
Goodwill is monitored at a company level, of a single cash-generating-unit (CGU).
The Group tests whether goodwill has suffered any impairment on an annual basis or where
there are specific indicators of impairment in the period. For the year to 30 June 2024,
goodwill was tested for impairment as at 31 December 2023, and again as at 30 June 2024
(2023: 30 June 2023).
Year to 30 June 2024: Goodwill impairment testing (Value-in-use)
The recoverable amount of the CGU has been determined based on itsvalue-in-use (2023:Fair
value less costs of disposal).
Value-in-use calculations require the use of various estimates and judgements. The
calculations use cash flow projections based on financial budgets approved by management
covering a five-year period which include consideration of the following:
The existing competitive environment in the key markets which the Group currently
operates in, including the Group’s existing and projected market share, and indicators
of overall growth in those markets.
The current life-cycle stage of the medicinal cannabis industry and the continued
trajectory towards maturity.
The maturation of supply chains in the industry, as well as the Group’s ability to exploit
these going forward.
The Group’s current loss-making position, reflecting its early commercial phase, and
operating cashflow requirements as well as the steps taken to date to address these.

34
Rua Bioscience Limited
Notes forming part of the consolidated financial statements (unaudited)
For the year ended 30 June 2024
13. Goodwill(continued)
Cash flows beyond the five-year period are extrapolated using the estimated growth rates stated below. These growth rates are consistent with forecasts in
industry reports specific to the industry in which the CGU operates:
Assumptions and approach used to determine values
As at
31 December 2023
(unaudited)
As at
30 June 2024
(unaudited)
Forecasted sales and costs of sales
This is based on current market share in existing sales channels as well as industry trends as
at the reporting date.
Cash flows for the next five-year period are extrapolated using annual estimated growth
rates comprising a compound annual growth rate (‘CAGR’). The CAGR reflects the low base
the business is beginning with, growth rates consistent with forecasts in industry reports
specific to the industry in which the CGU operates, the supply agreements the business has in
place and the markets in which the business currently has distribution agreements in place or
employees in market.
110%39.04%
Pre-taxdiscount rate
Reflects specific risks relating to the relevant activities of the Group.
25.13%21.86%
Long-term growth rate
This is the weighted average growth rate used to extrapolate cash flows beyond the budget
period.
2%2%

35
Rua Bioscience Limited
Notes forming part of the consolidated financial statements (unaudited)
For the year ended 30 June 2024
13. Goodwill(continued)
As at 31 December 2023, the carrying value of the entire CGU was $13,354,348 which
exceeded the recoverable amount of the CGU by $5,101,213 and as a result, the Group
recognised an impairment loss of $8,253,135 against the carrying value of goodwill.
This goodwill impairment, a significant portion of which was attributed to the historical
acquisition of Zalm Therapeutics, stems from a comprehensive analysis conducted by
Management and the Board. Through this analysis, which evaluated various growth scenarios,
it became apparent that the acquisition had not delivered the expected financial returns.
Goodwill was tested again for impairment as at 30 June 2024 based on internal indicators of
impairment due to the Group not meeting its short-term forecasts predominantly as a result of
regulatory delays. As at 30 June 2024, the recoverable amount of the entire CGU was
$5,044,236 which exceeds its carrying amount by $1,145. Management believe that the
headroom at 30 June 2024 reflects the fact that significant impairment has already been
recognised at 31 December 2023.
If any one of the following changes were made to the above key assumptions, the carrying
amount and recoverable amount would be equal:
Key assumptionSensitivity
(unaudited)
Forecasted sales and costs of sales/’CAGR’Reduction from 39.04% to
39.02%
Pre-tax discount rate
Increase from 21.86% to
21.87%
Long-term growth rate
Reduction from 2.00% to
1.99%
The directors and management have considered and assessed reasonably possible changes for
other key assumptions and have not identified any instances that could cause the carrying
amount of the CGU to exceed its recoverable amount.
Year to 30 June 2023: Goodwill impairment testing (Fair value less costs of disposal)
The recoverable amount of the CGU as at 30 June 2023 was determined based on the price that
would be received between market participants at the measurement date, less any directly
incremental transaction costs and costs to bring the CGU to a saleable condition.
The recoverable value was based on an estimate of market value at the reporting date based
on the quoted share price of $0.15 per share. The share issue price at reporting date is based
on the quoted price on the NZX listed exchange and represents a “level 1” fair value
measurement per the fair value hierarchy.
In determining the recoverable value of the CGU, the Group had headroom of $4,232,720 (2022:
$25,262,067) over the carrying value. No impairment of goodwill was recognised as at 30 June
2023.

36
Rua Bioscience Limited
Notes forming part of the consolidated financial statements (unaudited)
For the year ended 30 June 2024
14. Intangible assets
Intangible assets are stated at historical cost (being their acquisition date fair value if acquired
in a business combination) less any accumulated amortisation and impairment losses.
The following estimated amortisation rates have been used:
Intangible assetUseful economic life
Supplier contractsFinite–based on units of production(refer below)
Supplier contracts are amortised on a units-of-supply basis, being the actual volume of units
purchased for production relative to the expected volumes purchased over the life of the
contract.
(i) Cost
Goodwill
$
Supplier
Contracts
$
Total
$
At 1 July 2023b (audited)10,448,0825,016,03515,464,117
At 30 June 2024(unaudited)10,448,0825,016,03515,464,117
At 1 July 2022(audited)10,448,0825,016,03515,464,117
At 30 June 2023(audited)10,448,0825,016,03515,464,117
(ii) Accumulatedamortisation and impairment
At 1 July 2023(audited)-(4,729,867)(4,729,867)
Amortisation charge-(5,961)(5,961)
Impairment charge(8,253,135)(280,207)(8,533,342)
At 30 June 2024(unaudited)(8,253,135)(5,016,035)(13,269,170)
At 1 July 2022(audited)---
Amortisation charge-(2,960)(2,960)
Impairment charge-(4,726,907)(4,726,907)
At 30 June 2023(unaudited)-(4,729,867)(4,729,867)
(iii) Net book value
At1 July 2022(audited)10,448,0825,016,03515,464,117
At 30 June 2023(audited)10,448,082286,16810,734,250
At 30 June 2024(unaudited)2,194,947-2,194,947
Impairment
During the year ended 30 June 2024, the Group was notified by Cann Group that they had given
notice to terminate its existing in-place supply agreement. There is a 12-month notice period
under the terms of the contract. As a result, an impairment charge of $280,207 has been
recognised against the supply contract to reflect the remaining estimated volumes that the Group
expects to purchase under the contract across the remaining period.

37
Rua Bioscience Limited
Notes forming part of the consolidated financial statements (unaudited)
For the year ended 30 June 2024
15. Leases
All leases are accounted for by recognising a right-of-use asset and a lease liability except for:
−Leases of low value assets; and
−Leases with a duration of 12 months or less.
Initial measurement
Lease liabilities are measured at the present value of the contractual payments due to the
lessor over the lease term, with the discount rate determined by reference to the rate inherent
in the lease unless (as is typically the case) this is not readily determinable, in which case the
Group’s incremental borrowing rate on commencement of the lease is used. Variable lease
payments are only included in the measurement of the lease liability if they depend on an index
or rate, however in such cases the initial present value determination assumes that the variable
element will remain unchanged throughout the lease term.
Other variable lease payments are expensed in the period to which they relate.
Right-of-use assets are initially measured at the amount of the lease liability, reduced for any
lease incentives received, and increased for:
−lease payments made at or before commencement of the lease;
−initial direct costs incurred; and
−the amount of any provision recognised where the Group is contractually required to
dismantle, remove or restore the leased asset (typically make-good provisions on buildings)
Right-of-use assets are depreciated on a straight-line basis over the remaining term of the lease
or over the remaining economic life of the asset if, rarely, this is judged to be shorter than the
lease term. Right-of-use assets are also subject to impairment assessment at reporting date.
(i) Information regarding the Group’s leases and leasing activity
The Group leases a number of properties including land, buildings, including commercial office
premises, in the jurisdiction from which it operates.
As standard industry practice, one of the Group’s property leases are subject to periodic CPI
increases and/or market rent reviews. A 1% increase in these payments would result in an
additional $692 cash outflow (2023: $244) compared to the current period’s cash outflow.
The Group’s property leases typically include renewal and termination options. The Group must
assess whether it reasonably expects (or not) to exercise these when determining the lease
term.
The Group has one property lease (2023: has one property lease) where the Group has assessed
it does not reasonably expect to exercise all available renewal options, resulting in a potential
additional lease term of 2 years (2023: 2 years) and potential future lease payments of $48,792
(2023: $48,792) that are not currently included in measurement of the lease liability recognised
for these leases.

38
Rua Bioscience Limited
Notes forming part of the consolidated financial statements (unaudited)
For the year ended 30 June 2024
15. Leases(continued)
(ii) Lease related balances as at period end, and amounts for the period
Note20242023
Expenses and income in theperiod
(unaudited)
$
(audited)
$
Depreciation
-Leases of property (land and buildings)50,67847,545
-Vehicles12,51132,383
-Plant-21,333
Interest expense16,87419,087
Balance sheet and cash flow statements
Carrying amount of Right-of-use asset
-Leases of property (land and buildings)135,17688,606
-Vehicles-11,978
-Plant--
Lease liabilities9(ii)147,780114,577
Additions to Right-of-use assets117,045-
Totalcash outflow related to leases94,740120,379

39
Rua Bioscience Limited
Notes forming part of the consolidated financial statements (unaudited)
For the year ended 30 June 2024
16. Trade and other receivables
20242023
Note(unaudited)
$
(audited)
$
Financial assets classified as amortised cost–current
Trade receivables26,16398,620
Less: provision for impairment of trade receivables--
Trade receivables–net26,16398,620
Financial assets classified as amortised cost–
non-current
Non-trade receivables75,00075,000
Financial assets classified as amortised cost-total4101,163173,620
GST receivable75,28736,416
Withholding taxreceivable11,78986,945
Government grants receivable
-Research and development tax credit163,369641,010
-Other--
Other receivables250,445764,371
Totaltrade andother receivables351,608937,991
The Group applies the NZ IFRS 9 simplified approach to measuring expected credit losses using a
lifetime expected credit loss provision for trade receivables. This is based on a provision matrix
which measures expected credit loss on a collective basis where trade receivables are grouped
based on similar credit risk and rating.
The expected loss rates are based on the Group’s historical credit losses. The historical loss rates
are then adjusted for current and forward-looking information on macroeconomic factors affecting
the Group’s customers. At reporting date, none of the Group’s trade receivables were past 30 days
due.
17. Prepayments
20242023
Note(unaudited)
$
(audited)
$
Prepaid inventory333,844104,247
Otherprepayments154,06359,115
Totalprepayments487,907163,362
Prepayments for future goods and services are recognised in the consolidated statement of profit
or loss and comprehensive income when the Group obtains control of the associated good or
service.

40
Rua Bioscience Limited
Notes forming part of the consolidated financial statements (unaudited)
For the year ended 30 June 2024
18. Trade and other payables
20242023
Note(unaudited)
$
(audited)
$
Trade payables4419,503276,801
Audit fee accrual110,78361,750
Other payables23,951183,993
Total trade and other payables554,237522,544
19. Employee benefit liabilities
20242023
(unaudited)
$
(audited)
$
Short term employee benefits payable
-Wages and salaries65,69673,780
-Accrual for annual and sick leave127,857104,840
193,553178,620
Defined contribution plan(‘Kiwisaver’)payable2,3491,463
Total employee benefit liabilities195,902180,083
20. Share Capital and Reserves
20242023
(unaudited)
No.
(audited)
No.
Opening shares158,136,265149,879,267
Shares issued*,**1,614,3148,256,998
Total share capital159,750,579 158,136,265
* During the year ended 30 June 2024:
1,614,314 vested share options were exercised into ordinary shares.
** During the year ended 30 June 2023:
116,998 vested share options were exercised into ordinary shares.
8,140,000 ordinary shares were issued as part of the Milestone 1 consideration paid
the acquisition of Zalm Therapeutics Limited.
At 30 June 2024, share capital comprised 159,750,579 authorised and issued ordinary shares (2023:
158,136,265). All issued shares are fully paid and have no par value. The holders of ordinary shares
are entitled to receive dividends as declared from time to time and are entitled to one vote per
share at meetings of the Group, and rank equally with regard to the Group’s residual assets.
Dividends are unlikely to be declared whilst the Group is in the growth phase.
Reserves
Exchange differences arising on the retranslation of the foreign operation are accumulated in the
foreign currency translation reserve.
Share-based payments (refer to note 23) are recognised as an expense, with a corresponding
increase in equity (share-based payment reserve), over the vesting period of the awards.

41
Rua Bioscience Limited
Notes forming part of the consolidated financial statements (unaudited)
For the year ended 30 June 2024
21. Related party transactions
(i) Company information
The Group has no ultimate parent entity. There are no individual shareholders holding more than
20% of the ordinary shares of the Group at reporting date.
(ii) Transactions and balances with related parties
During the year the Group entered into the below transactions with entities related to key
management personnel.
Nature of
transactions
Sale/(purchase)
amount
Amounts
receivable/
(payable)
$$
30 June 2024(unaudited)
EECOMS LimitedSales3,000-
HikurangiEnterprises LimitedSales209-
Zenoch Management LimitedPurchases(52,500)(4,744)
30 June 2023(audited)
Alvarium Investments (NZ)
Limited
Purchases(2,300)-
CiprianConsultingPurchases(4,337)-
HikurangiEnterprises LimitedSales1,000
MitchellFamily TrustPurchases(1,087)-
(iii) Key management personnel compensation
Compensation of key management personnel (being those persons having authority and responsibility
for planning, directing and controlling the activities of the Group, including the directors) was as
follows:
20242023
(unaudited)
$
(audited)
$
Directors fees237,000261,462
Short-term employee benefits271,5421,164,683
Defined contribution plan payments7,65539,996
Share-based payment expense135,087127,426
Total key management personnel compensation651,2841,593,567
Keymanagement personnel compensation payable21,70344,170

42
Rua Bioscience Limited
Notes forming part of the consolidated financial statements (unaudited)
For the year ended 30 June 2024
22. Contingent liabilities
There were no contingent liabilities at balance date that would affect the consolidated financial
statements.
23. Share-based payments
(a) Key features and balances of ESOPs
The Group grants options to certain employees under a number of employee share option schemes
which are classified and accounted for asequity-settled share-based payments.
In the prior period:
ESOPIssue #4 was issued and is subject to the following conditions:
Are subject to a general service vesting condition (i.e. if the party terminates their
employment with the company, the share options are forfeited);
Are subject to a market condition based on the VWAP for the 10-trading-day prior to
vesting date;
Grant a variable number of options subject to the market conditions met at the vesting
date;
Have a $nil exercise price; and
Are subject to the following exercise dates:
oOne third can be exercised one month after vesting
oOne third can be exercised one year after vesting
oOne third can be exercised two years after vesting
ESOPIssue #5 was issued and is subject to the following conditions:
Are subject to a general service vesting condition (i.e., if the party terminates their
employment with the company, the unvested share options are forfeited);
Have a $nil exercise price; and
Vest to the participating employees daily such that each award constitutes a separate
tranche with an equal number of options and identical terms and conditions.
ESOPIssue #6 was issued and is subject to the following conditions:
Are subject to a general service vesting condition (i.e., if the party terminates their
employment with the company, the unvested share options are forfeited); and
Have a $nil exercise price.

43
Rua Bioscience Limited
Notes forming part of the consolidated financial statements (unaudited)
For the year ended 30 June 2024
23. Share-based payments(continued)
(b) Key features and balances of ESOPs(continued)
(i) Balance of share options issued that are still yet to vest
Issue #4Issue #5Issue #6Total
No.No.No.No.
At 1 July 2022(audited)2,317,200--2,317,200
-Options issued-2,450,0002,100,0004,550,000
-Options vested-(272,721)-(272,721)
-Options forfeited(1,617,800)(933,002)-(2,550,802)
At 30 June 2023(audited)699,4001,244,2772,100,0004,043,677
At 1 July 2023(audited)699,4001,244,2772,100,0004,043,677
-Options issued----
-Options vested-(468,403)(1,614,314)(2,082,717)
-Options forfeited(699,400)-(485,686)(1,185,086)
At30 June 2024(unaudited)-775,874-775,874
(ii) Balance of vested share options yet to be exercised
Issue #4Issue #5Issue #6Total
No.No.No.No.
At 1 July 2022(audited)----
-New options vested-272,721-272,721
-Options exercised-(116,998)-(116,998)
At 30 June 2023(audited)-155,723-155,723
At 1 July 2023(audited)-155,723-155,723
-New options vested-468,4031,614,3142,082,717
-Options exercised--(1,614,314)(1,614,314)
At 30 June 2024(unaudited)-624,126-624,126

44
Rua Bioscience Limited
Notes forming part of the consolidated financial statements (unaudited)
For the year ended 30 June 2024
23. Share-based payments(continued)
(c) Specific ESOP details
Equity Settled
ESOP Issue #4
2024
(unaudited)
2023
(audited)
Option pricing model usedMonte-CarloMonte-Carlo
Weighted average share price$0.23$0.23
Exercise price$nil$nil
Weighted average contractual life (in days)-366
Volatility85%85%
Equity Settled
ESOP Issue #5
2024
(unaudited)
2023
(audited)
Option pricing model usedBinomialBinomial
Weighted average share price$0.17$0.17
Exercise price$nil$nil
Weighted average contractual life (in days)122488
Volatility78%78%
Equity Settled
ESOP Issue #6
2024
(unaudited)
2023
(audited)
Option pricing model usedBinomialBinomial
Weighted average share price$0.16$0.16
Exercise price$nil$nil
Weighted average contractual life (in days)-187
Volatility81%81%
The volatility assumption, measured at the standard deviation of expected share price returns, is based
on a statistical analysis of daily share prices over the last 3 years and 6 months of stock movements at
the date of issue, matching the time to expiry on the options.

45
Rua Bioscience Limited
Notes forming part of the consolidated financial statements (unaudited)
For the year ended 30 June 2024
24. Assets held for sale
Non-current assets are classified as held for sale when their sale is highly probable within 12 months
of meeting the criteria for that classification. Following the classification as held for sale, non-current
assets are not depreciated.
In October 2023, the Group engaged real estate agent Bayleys to market its manufacturing facility for
sale which resulted in the associated property, plant and equipment and right-of-use assets meeting
the criteria for held for sale from that date.
The following assets and liabilities were reclassified as held for sale as at 30 June 2024 in relation to
the Group’s decision to market its manufacturing facility for sale as part of its wider operational
restructure:
NoteNet book value
transferred to
assets held for
sale
Fair value/
impairment
loss
30 June 2024
(unaudited)
Assets classified as held for sale
Property, plant and
equipment
12
1,387,517(527,010)860,507
Right-of-use assets19,274-19,274
Total assets held for sale1,406,791(527,010)879,781
Liabilities classified as held for sale
Lease liabilities(5,988)-(5,988)
Total liabilities classified as
held for sale
(5,988)-(5,988)
Total net assets held for sale1,400,803(527,010)873,793
Assets classified as held for sale during the period ended 30 June 2024 were measured at the lower
of their carrying value and fair value less costs to sell at the time of the reclassification.
Property, plant and equipment held for sale was written down to its fair value less costs of disposal
of $860,507 as at reporting date. The level 3 fair value of these assets was derived using the sales
comparison approach. The key input under this approach was the recent observable selling prices for
assets of similar nature, adjusted for condition and location.

46
Rua Bioscience Limited
Notes forming part of the consolidated financial statements (unaudited)
For the year ended 30 June 2024
25. Events after the reporting date
As outlined in note 2(f), the Group has entered into an agreement for the sale of its Gisborne
manufacturing facility for $1.3 million. The sale is conditional upon assignment of the
underlying land lease which is expected to occur.
There were no other events subsequent to reporting date that would materially affect these
consolidated financial statements.
26. Subsidiaries
The principal subsidiaries of Rua Bioscience Limited, which have been included in these
consolidated financial statements, are as follows:
NameCountry of
incorporation and
principal place of
business
Proportion of
ownership interest at
30 June
Non-Controlling interests
ownership/voting interest
at 30 June
2024
(unaudited)
2023
(audited)
2024
(unaudited)
2023
(audited)
Zalm Therapeutics
Limited*
New Zealand
-100%--
Rua Bioscience
Australia PTY
Limited
Australia
100%100%--
*On 13 September 2023, the net assets of Zalm Therapeutics Limited were transferred by way
of a distribution to the Company, and then deregistered.
27. Net tangible assets
Net tangible assets per share is a non-GAAP measure that is required to be disclosed by the NZX
Listing Rules. The calculation of the Group's net tangible assets per share and its reconciliation
to the consolidated balance sheet is presented below:
20242023
(unaudited)
$
(audited)
$
Total assets7,739,78320,950,572
(less): Intangible assets(2,194,947)(10,734,250)
(less): total liabilities(973,125)(830,307)
Net tangible assets4,571,7119,386,015
Number of shares issued at balance date159,750,579158,136,265
Net tangible assets per share
0.030.06