TruScreen Half Year Results

6 November 2023
NZX/ASX Announcement

TruScreen Unaudited Interim Results for the Half Year Ended 30
September 2023

Highlights for Half Year ended 30 September 2023
• Product sales up 33% on same period prior year
• Strong performance from major market China
• Opening of new market in Saudi Arabia and good progress in Zimbabwe and other
markets indicate a strong H2 FY 2024.

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 2023 (1H FY24), along with the following operational update. TruScreen reports
according to the New Zealand financial year, which runs from 1 April to 31 March.
Revenue from sale of goods increased by 33% over the same period prior year to $0.98 million. The
China business is growing strongly and will be well supported by Zimbabwe, Saudi Arabia, Vietnam
and Mexico in H2 2024. The Company reported an operating loss of $1.35 million (1H FY22: $1.22
million). The increase in operating loss was attributed to lower margin on device sales into China, to
accelerate SUS pull through, and compliance costs associated with new regulatory reporting
requirements in China and Europe.
SUS unit sales were up 28% over the previous year and device sales were 100% 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 $1.4 million (1H FY23: $1.2 million). The reduced cash flow is
attributable to a lower Australian research and development tax offset receipt in the current half year.
As at 30 September 2023, the Company had cash and cash equivalents of $0.8 million.
Half-Year Commentary
TruScreen has maintained its revenue base despite disruptive and challenging market conditions.
Market developments
China
China’s operations, through its distributor Beijing Siweixiangtai Tech Co. Ltd (SWXT), is experiencing
rapid growth building on the recent recognition of the technology in a China Blue Paper “Cervical
Cancer Three Stage Standardized Prevent and Treatment” published on 28 April 2023. In China, Blue
Papers are promulgated to act as the definitive position on leading edge developments in all industries
and are recognised as an endorsement by the leaders in the relevant field.
In addition, the CSCCP (Chinese Society of Colposcopy and Cervical Pathology) China Cervical
Cancer Screening Management Guideline was the first national medical guideline in the world to
recommend TruScreen as a new method for cervical cancer screening.

TruScreen has more than 100 devices installed in hospitals and clinics in 22 provinces in China. In
addition, a growing pipeline includes, 14 hospital tenders won and awaiting installation, 26 hospitals
which have approved TruScreen and are awaiting tender and 74 Hospitals where TruScreen has
obtained OBGYN department acceptance, awaiting hospital approval.
Zimbabwe
TruScreen have just been awarded a further order of SUS (Single Use Sensor) with gross sales value
NZ$300,000 to be delivered in Q3 FY 2024. The Ministry of Health’s collaboration with the National
Aids Council screening program in Masvingo Province has already screened over 14,000 women,
and is a precursor to a national roll out.
Middle East
The largest private health services provider in the middle east, Dr. Sulaiman Al-Habib Medical Group
(DSAMG) in Saudi Arabia, completed its first clinical evaluation in the Middle East, of 507 women,
during the period. The analysis of the results showed that TruScreen’s sensitivity was 83.3% and
specificity was 95%, compared to 83.3% and 98% for the placebo Liquid Based Cytology (LBC). This
demonstrates TruScreen’s efficacy while providing real time results and resolving many of the issues
faced with potential patient follow-up when using LBC. The clinical evaluation manuscript has been
submitted for publication in the European Journal of Gynaecology.
The commencement of commercial operations at the DSAMG is an important reference for
neighbouring markets in the middle east.
Vietnam
The Ministry of Health has approved 2 key hospitals with a further 4 hospitals well advance in the
approval process. A recent visit by TruScreen CEO to Vietnam confirmed Vietnam as a key market
for the Company which is expected to contribute to further growth in H2 FY 2024.
Other markets
During the period, TruScreen was listed on the Innovation Register, by the Polish Ministry of Health.
This accreditation increases awareness among healthcare clinicians. There is an ‘at risk’ population
of 17.1 million and high cervical cancer rates (3,515 cases and 1,858 deaths annually) from lack of
national screening for cervical cancer.
Our Mexican distributor, Sunbird Medical has applied for access to the public hospital system to
Cofepris, the national regulator. A decision is expected in FY2024, and if successful we expect
TruScreen to be available to public hospitals and clinics.
Regulatory Compliance
The investment and transition of our regulatory processes to comply with the new Medical Device
Regulation (MDR) is well advanced, for compliance by May 2024. Our China NMPA variation
application was also advanced during the half year. The variation seeks approval for the latest Device
software updates and recertification to the updated NMPA standards, and will further strengthen
TruScreen’s position in the Chinese market.

Outlook
The results for the half year provide optimism for our commercial successes in China and other
markets, while investing $332,000 (2022: $410,000) in non-recurring costs, in complying with the new
MDR global processes and seeking approval from China’s NMPA for our device software updates.
These costs will cease by end FY2024. At the August 2023 Annual General we indicated to
shareholders that further growth funding is required to maintain the commercialisation momentum
that we have generated over the past year.

Ends
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




About TruScreen:

TruScreen Group Limited (NZX/ASX: TRU) is a 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, negating sampling and
processing of biological tissues, 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 device for cervical
cancer screening.
The device is CE Marked/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, Israel, Ukraine, and the
Philippines, among others and has distributors in 29 countries. In 2021, TruScreen established a
manufacturing facility in China for devices marketed and sold in China.
TruScreen technology has been recognised in CSCCP’s (Chinese Society for Colposcopy and
Cervical Pathology) China Cervical Cancer Screening Management Guideline.
TruScreen has been recognised in a China Blue Paper “Cervical Cancer Three Stage Standardized
Prevent and Treatment” published on 28 April 2023.
In financial year 2023 alone, over 140000* examinations have been performed
with TruScreen device. To date, 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 Use Sensor sales.

Glossary:
Pap smear (the Papanicolaou smear) test involves gathering a sample of cells from the cervix, with a special
brush. The sample is placed on a glass slide or in a bottle containing a solution to preserve the cells. Then it is
sent to a laboratory for a pathologist to examine under a microscope. https://www.cancer.net/navigating-
cancer-care/diagnosing-cancer/tests-and-procedures/pap-test
LBC (the liquid-based cytology) test, transfers a thin layer of cells, collected with a brush from the cervix, onto
a slide after removing blood or mucus from the sample. The sample is preserved so other tests can be done at
the same time, such as the human papillomavirus (HPV) test https://www.cancer.net/cancer-types/cervical-
cancer/diagnosis

HPV (human papilloma virus) test is done on a sample of cells removed from the cervix, the same sample
used for the Pap test or LBC. This sample is tested for the strains of HPV most commonly linked to cervical
cancer. HPV testing may be done by itself or combined with a Pap test and/or LBC. This test may also be done
on a sample of cells which a person can collect on their own. https://www.cancer.net/cancer-types/cervical-
cancer/screening-and-prevention

Sensitivity and specificity mathematically describe the accuracy of a test which reports the presence or
absence of a condition. If individuals who have the condition are considered "positive" and those who don't
are considered "negative", then sensitivity is a measure of how well a test can identify true positives and
specificity is a measure of how well a test can identify true negatives:
• Sensitivity (true positive rate) is the probability of a positive test result, conditioned on the
individual truly being positive.
• Specificity (true negative rate) is the probability of a negative test result, conditioned on the
individual truly being negative (Sensitivity and specificity – Wikipedia).
For more information about the cervical cancer and cervical cancer screening in New Zealand and Australia,
please see useful links:
New Zealand: National Cervical Screening Programme | National Screening Unit (nsu.govt.nz)
Australia: Cervical cancer | Causes, Symptoms & Treatments | Cancer Council

---

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 2023
Previous Reporting Period 6 months to 30 September 2022
Currency
Amount (000s) Percentage change
Revenue from continuing
operations
$ 985 +33.0%
Total Revenue $1,164 +3.4%
Net profit/(loss) from
continuing operations
($1,356) -11.1%
Total net profit/(loss) ($1,356) -11.1%
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
$0.0029 $0.0064
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

6 November 2023

Unaudited financial statements accompany this announcement.

---

TRUSCREEN GROUP LIMITED








TRUSCREEN GROUP LIMITED

Interim Unaudited Financial Statements

For the Six Months Ended 30 September 2023

TRUSCREEN GROUP LIMITED


Table of contents


Page


Review of Operations 1
Consolidated statement of profit or loss and other comprehensive income 5
Consolidated statement of financial position 6
Consolidated statement of changes in equity 7
Consolidated statement of cash flows 8
Notes to the interim unaudited condensed financial statements 9

TRUSCREEN GROUP LIMITED

3
REVIEW OF OPERATIONS

Highlights for Half Year ended 30 September 2023
• Product sales up 33% on same period prior year
• Strong performance from major market China
• Opening of new market in Saudi Arabia and good progress in Zimbabwe and other markets
indicate a strong H2 FY 2024.
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
2023 (1H FY24), along with the following operational update. TruScreen reports according to the New
Zealand financial year, which runs from 1 April to 31 March.
Revenue from sale of goods increased by 33% over the same period prior year to $0.98 million. The China
business is growing strongly and will be well supported by Zimbabwe, Saudi Arabia, Vietnam and Mexico
in H2 2024. The Company reported an operating loss of $1.35 million ( 1H FY22: $1.22 million). The
increase in operating loss was attributed to lower margin on device sales into China, to accelerate SUS
pull through, and compliance costs associated with new regulatory reporting requirements in China and
Europe.
SUS unit sales were up 28% over the previous year and device sales were 100% 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 $1.4 million (1H FY23: $1.2 million). The reduced cash flow is attributable
to a lower Australian research and development tax offset receipt in the current half year.
As at 30 September 2023, the Company had cash and cash equivalents of $0.8 million.

Half-Year Commentary
TruScreen has maintained its revenue base despite disruptive and challenging market conditions.
Market developments
China
China’s operations, through its distributor Beijing Siweixiangtai Tech Co. Ltd (SWXT), is experiencing rapid
growth building on the recent recognition of the technology in a China Blue Paper “Cervical Cancer Three
Stage Standardized Prevent and Treatment” published on 28 April 2023. In China, Blue Papers are
promulgated to act as the definitive position on leading edge developments in all industries and are
recognised as an endorsement by the leaders in the relevant field.
In addition, the CSCCP (Chinese Society of Colposcopy and Cervical Pathology) China Cervical Cancer
Screening Management Guideline was the first national medical guideline in the world to recommend
TruScreen as a new method for cervical cancer screening.
TruScreen has more than 100 devices installed in hospitals and clinics in 22 provinces in China. In addition,
a growing pipeline includes, 14 hospital tenders won and awaiting installation, 26 hospitals which have
approved TruScreen and are awaiting tender and 74 Hospitals where TruScreen has obtained OBGYN
department acceptance, awaiting hospital approval.
Zimbabwe
TruScreen have just been awarded a further order of SUS (Single Use Sensor) with gross sales value
NZ$300,000 to be delivered in Q3 FY 2024. The Ministry of Health’s collaboration with the National Aids
Council screening program in Masvingo Province has already screened over 14,000 women, and is a
precursor to a national roll out.

TRUSCREEN GROUP LIMITED

4

Middle East
The largest private health services provider in the middle east, Dr. Sulaiman Al-Habib Medical Group
(DSAMG) in Saudi Arabia, completed its first clinical evaluation in the Middle East, of 507 women, during
the period. The analysis of the results showed that TruScreen’s sensitivity was 83.3% and specificity was
95%, compared to 83.3% and 98% for the placebo Liquid Based Cytology (LBC). This demonstrates
TruScreen’s efficacy while providing real time results and resolving many of the issues faced with potential
patient follow-up when using LBC. The clinical evaluation manuscript has been submitted for publication
in the European Journal of Gynaecology.
The commencement of commercial operations at the DSAMG is an important reference for neighbouring
markets in the middle east.
Vietnam
The Ministry of Health has approved 2 key hospitals with a further 4 hospitals well advance in the approval
process. A recent visit by TruScreen CEO to Vietnam confirmed Vietnam as a key market for the Company
which is expected to contribute to further growth in H2 FY 2024.
Other markets
During the period, TruScreen was listed on the Innovation Register, by the Polish Ministry of Health. This
accreditation increases awareness among healthcare clinicians. There is an ‘at risk’ population of 17.1
million and high cervical cancer rates (3,515 cases and 1,858 deaths annually) from lack of national
screening for cervical cancer.
Our Mexican distributor, Sunbird Medical has applied for access to the public hospital system to Cofepris,
the national regulator. A decision is expected in FY2024, and if successful we expect TruScreen to be
available to public hospitals and clinics.
Regulatory Compliance
The investment and transition of our regulatory processes to comply with the new Medical Device
Regulation (MDR) is well advanced, for compliance by May 2024. Our China NMPA variation application
was also advanced during the half year. The variation seeks approval for the latest Device software
updates and recertification to the updated NMPA standards, and will further strengthen TruScreen’s
position in the Chinese market.
Outlook
The results for the half year provide optimism for our commercial successes in China and other markets,
while investing $332,000 (2022: $410,000) in non-recurring costs, in complying with the new MDR global
processes and seeking approval from China’s NMPA for our device software updates. These costs will
cease by end FY2024. At the August 2023 Annual General we indicated to shareholders that further
growth funding is required to maintain the commercialisation momentum that we have generated over the
past year.
I take the opportunity to thank shareholders for their ongoing support.


Anthony Ho
Chairman
6 November 2023

TRUSCREEN GROUP LIMITED

5
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023


Unaudited
for the six
months
ended 30
September
2023
Unaudited
for the six
months
ended 30
September
2022

Audited
for the year
ended 31
March 2023
Note $ $ $
Revenue from the sale of goods 984,512 740,034 1,662,619
Other income 4 179,422 385,191 540,016
Inventories used (806,871) (557,143) (1,202,628)
Employee benefit expenses and directors’
fees (455,697) (490,076) (876,849)
Administration (182,853) (187,663) (415,296)
Research and development expenses (540,622) (495,204) (864,074)
Rent (20,384) (28,442) (60,959)
Travel (22,885) (17,969) (62,544)
Regulatory compliance, consulting &
marketing (331,848) (410,082) (722,256)
Insurance (69,841) (69,595) (139,633)
Shareholder relations & services (89,300) (89,378) (155,664)
Provision for impairment plant and equipment - - (49,700)
Share based payments - - (54,873)
Loss before income tax (1,356,367) (1,220,326) (2,401,840)
Income tax expense - - -
Loss for the period after income tax (1,356,367) (1,220,326) (2,401,840)
Other comprehensive income
Item that may be reclassified subsequently to
profit or loss
Exchange gain/(loss) on translating foreign
subsidiary operations 13,864 137,465 1,736
Total comprehensive loss for the period

(1,342,503) (1,082,861) (2,400,104)
Basic and diluted losses (cents per share) (0.32) (0.34) (0.66)

The accompanying notes form part of these financial statements.

TRUSCREEN GROUP LIMITED

6

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2023


Unaudited
30
September
2023

Unaudited
30
September
2022

Audited
31
March
2023

Note $ $ $
CURRENT ASSETS


Cash and cash equivalents 807,228 1,677,547 2,160,468
Trade receivables 122,846 150,445 336,700
Other receivables 145,139 248,875 170,311
Goods and services taxes recoverable 42,396 29,161 33,902
Inventories 640,998 707,205 563,441
Other assets – prepayments 326,871 119,603 205,361
TOTAL CURRENT ASSETS 2,085,478 2,932,836 3,470,183

NON-CURRENT ASSETS
Plant and equipment - - -
Intangible assets - - -
TOTAL NON-CURRENT ASSETS - - -

TOTAL ASSETS 2,085,478 2,932,836 3,470,183

CURRENT LIABILITIES
Trade and other payables 718,470 463,541 800,255
Employee benefits 127,834 130,855 88,547
TOTAL CURRENT LIABILITIES 846,304 594,396
888,802

NON-CURRENT LIABILITIES

Employee benefits 39,653 26,250
39,357
TOTAL NON-CURRENT LIABILITIES 39,653 26,250
39,357

TOTAL LIABILITIES 885,957 620,646 928,159

NET ASSETS 1,199,521 2,312,190 2,542,024

EQUITY
Issued capital 7 36,097,125 34,550,048 36,097,125
Share option reserve 144,813 144,813 144,813
Foreign currency translation reserve (365,244) (243,379) (379,108)
Accumulated losses (34,677,173) (32,139,292) (33,320,806)
Total Equity 1,199,521 2,312,190 2,542,024
The accompanying notes form part of these financial statements.

TRUSCREEN GROUP LIMITED

7

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023

Share
Capital
Accumulated
Losses
Foreign
Currency
Translation
Reserve
Option
Reserve Total
Note $ $ $ $ $
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
Balance at 31 March
2023 (Audited)

36,097,125 (33,320,806)
(379,108)
144,813 2,542,024
Comprehensive income




Loss for the period ended
30 September 2023

- (1,356,367) - - (1,356,367)
Exchange differences on
translation of foreign
subsidiary operations

- - 13,864 - 13,864
Total comprehensive
loss for the period
(unaudited)

- (1,356,367) 13,864 - (1,342,503)
Balance at 30
September 2023
(Unaudited)

36,097,125

(34,677,173)

(365,244)

144,813

1,199,521



The accompanying notes form part of these financial statements.

TRUSCREEN GROUP LIMITED

8

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023

Unaudited
for the six
months
ended 30
September
2023

Unaudited
for the six
months
ended 30
September
2022


Audited for
the year
ended 31
March 2023
Note $

$ $
CASH FLOW FROM OPERATING
ACTIVITIES




Cash receipts from customers 1,044,974 918,401 1,790,550
Cash paid to suppliers and employees (2,748,101) (2,719,056) (4,483,553)
Cash received from research and
development tax offset

372,223

650,479

627,982
Short-term lease payments not included in
lease liability

(72,922) (66,363)

(131,619)

Interest received 2,957 774 2,854
Net cash used in operating activities 8
(1,400,869) (1,215,766) (2,193,786)

CASH FLOW FROM INVESTING
ACTIVITIES






Purchase of plant and equipment - - (49,700)
Net cash used in investing activities - - (49,700)

CASH FLOW FROM FINANCING
ACTIVITIES





Proceeds from issue of shares - - 1,613,273
Share issue costs (21,100) - (66,196)

Net cash provided by financing activities

(21,100) - 1,547,077

Net decrease in cash and cash
equivalents

(1,421,969) (1,215,766) (696,409)
Cash and cash equivalents at beginning of
period
2,160,468 2,797,004
2,797,004
Effect of foreign exchange adjustment on
cash balances
68,729 96,309
59,873
Cash and cash equivalents at end of
period 807,228 1,677,547 2,160,468
The accompanying notes form part of these financial statements.

TRUSCREEN GROUP LIMITED

9



1. REPORTING ENTITY
These consolidated unaudited interim condensed financial statements presented for the six
months ended 30 September 2023 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 31 October 2023.
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 2023.
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 2023.
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 $1,356,367 (2022: $1,220,236).
• net cash outflows from operating and investing activities of $1,400,869 (2022: $1,215,766)
• cash as at half year end of $807,228 (2022: $1,677,547)
The Directors have undertaken a detailed cash flow forecast for the twelve months following the
date of approval of report.

TRUSCREEN GROUP LIMITED

10


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 when required, it can cast doubt on the entities ability to continue as a going
concern, and trade in the normal course of business.

3. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
When preparing the interim financial statements, management is required to make judgements,
estimates and assumptions about carrying values of assets and liabilities that are not readily
apparent from other sources. The estimates and associated assumptions are based on
experience and other factors that are believed to be reasonable under the circumstances. Actual
results may differ from the estimates, judgements and assumptions made by management.
Estimates and underlying assumptions are reviewed on an on-going basis. Revisions to
accounting estimates are recognised in the period in which the estimate is revised and in any
future periods affected. Information about significant areas of estimation uncertainty and critical
judgements in applying accounting policies that have the most significant effect on the amounts
recognised in the financial statements can be found in the previous annual report.

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 the Russia/Ukraine conflict and the COVID-
19 pandemic. As a consequence the directors 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.
Global uncertainties from ongoing geopolitical tensions continue to impact the markets that the
Group are in. As at 30 September 2023, the Directors have determined that there are no indicators
which would warrant reversal of the Provision for impairment made as at 31 March 2022.
The Directors will continue to review available indicators as at each future reporting balance date.

TRUSCREEN GROUP LIMITED

11
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
2023

Unaudited for
the six months
ended 30
September 2022
Audited for
the year ended
31 March
2023

$ $ $
Other income

Research and development tax
refund/offset¹

- Current year
177,154 248,875 345,901
- Prior year adjustment
- 25,048 31,143

177,154 273,923 377,044
Interest
2,268 778 3,303
Miscellaneous income
- - 39,084
Foreign exchange gains
- 110,490 120,585
Total other income
179,422 385,191 540,016

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

12

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 2023 of $973,208 (84%) (2022: one customer of $731,258 98%).
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 2022
362,866,253 34,550,048
Ordinary shares issued

Share issue – placement
20,000,000 600,000
Share issue – rights issue
33,775,755 1,013,273
Share issue costs
- (66,196)
Balance at 31 March 2023
416,642,008 36,097,125
Balance at 30 September 2023
416,642,008 36,097,125

TRUSCREEN GROUP LIMITED

13

8. RECONCILIATION OF CASH FLOW FROM OPERATING ACTIVITIES


Unaudited
for the six
months
ended 30
September
2023
Unaudited
for the six
months
ended 30
September
2022
Audited for
the year
ended 31
March 2023

$

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





Loss for the period
(1,356,367)

(1,220,326)

(2,401,840)
Adjusted for:



Depreciation and amortisation
- 2,440

-
Impairment of non-current assets
- -

49,700
Share based payment expense
- -

54,873
Exchange difference arising from translating
loss items at the date of transaction and
translating cash balances at period end rates
(33,768) 36,510

(113,010)
Operating cash flows before working capital

(1,390,135) (1,176,968)
(2,410,277)

Decrease in trade receivables
47,465 125,003 105,137
Increase/(decrease) in goods and services
taxes recoverable
(8,494)

7,621

2,880
(increase)/decrease in prepayments
(121,509)

61,871
(26,092)
Increase in inventory
(77,558)

(210,317)
(66,553)
Decrease in research and development
refundable tax offset
191,561

352,680

264,854
Decrease in trade and other payables
(81,783) (343,834) (7,120)
Increase/(decrease) in employee liabilities
39,583

(27,414)
(56,615)
Net cash outflow from operating activities
(1,400,869)

(1,215,766)

(2,193,786)

TRUSCREEN GROUP LIMITED

14

9. NET TANGIBLE ASSETS PER SHARE



Unaudited
as at
30 September
2023
Unaudited
as at
30 September
2022
Audited
as at
31 March
2023
Net tangible assets ($)

1,199,521 2,312,190 2,542,024
Shares on issue at the end of period

416,642,008

362,866,253

416,642,008
Net tangible assets per share (cents
per share)

0.29

0.64

0.61

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 2023 which would have a material effect on the Group’s
unaudited interim financial statements for the six months ended 30 September 2023.