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Financial instruments

12 Months Ended

Jun. 30, 2025

Note 22. Financial instruments

Financial risk management objectives

The Consolidated Entity’s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Consolidated Entity uses different methods to measure and manage the different types of risks to which it is exposed. These methods include monitoring the levels of exposure to interest rates and foreign exchange, aging analysis and monitoring of specific credit allowances to manage credit risk, and, rolling cash flow forecasts to manage liquidity risk.

Market risk

Foreign currency risk

The Consolidated Entity operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the US dollars (‘USD’). Foreign exchange risk arises from future transactions and recognised assets and liabilities denominated in a currency that is not the entity’s functional currency and net investments in foreign operations.

Foreign currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because they are denominated in currencies that differ from the Company’s functional currency. The Company is exposed to foreign currency risk on fluctuations related to cash and cash equivalents, trade and other receivables, trade and other payables, and derivative financial liabilities on warrants that are denominated in foreign currencies. The Company has not used derivative instruments to reduce its exposure to foreign currency risk nor has it entered into foreign exchange contracts to hedge against gains or losses from foreign exchange fluctuations. Foreign subsidiaries with a functional currency of Australian Dollars (‘AUD’) have exposure to the local currency of these subsidiaries and any other currency these subsidiaries trade in.

The carrying amount of the Consolidated Entity’s foreign currency denominated financial assets and financial liabilities at the reporting date was as follows:


	Assets				Liabilities
	2025 A$’000		2024 A$’000		2025 A$’000		2024 A$’000

US dollars		4,206		3,329		5,854		7,420
Euros		—		—		6,738		7,320
Pound Sterling		—		—		9		18
		4,206		3,329		12,601		14,758

The Consolidated Entity had net liabilities denominated in foreign currencies of A$8.4 million as at 2025 (2024: net liabilities A$11.4 million).

If all currencies had strengthened and weakened against the USD by 10% (2024:10% ) then this would have had the following impact:


	AUD strengthened									AUD weakened
Consolidated - 2025	% change			Effect on profit before tax A$’000			Effect on equity A$’000			% change			Effect on profit before tax A$’000		Effect on equity A$’000

US dollars		10	%		(165	)		(165	)		(10	)%		165		165
Euros		10	%		(674	)		(674	)		(10	)%		674		674
Pound Sterling		10	%		(1	)		(1	)		(10	)%		1		1

					(840	)		(840	)					840		840



	AUD strengthened									AUD weakened
Consolidated - 2024	% change			Effect on profit before tax A$’000			Effect on equity A$’000			% change			Effect on profit before tax A$’000		Effect on equity A$’000

US dollars		10	%		(409	)		(409	)		(10	)%		409		409
Euros		10	%		(732	)		(732	)		(10	)%		732		732
Pound Sterling		10	%		(2	)		(2	)		(10	)%		2		2

					(1,143	)		(1,143	)					1,143		1,143

Price risk

The Consolidated Entity is not exposed to any significant price risk.

Interest rate risk

The Consolidated Entity’s exposure to market interest rates relate primarily to the investments of cash balances.

The Consolidated Entity has cash reserves held primarily in Australian dollars and United States dollars and places funds on deposit with financial institutions for periods generally not exceeding three months.

As at the reporting date, the Consolidated Entity had the following variable interest rate balances:


	2025				2024
	Weighted average interest rate %		Balance A$’000		Weighted average interest rate %		Balance A$’000

Cash and cash equivalents		1.79		4,345		0.39		1,657

Net exposure to cash flow interest rate risk				4,345				1,657

The Consolidated Entity has cash and cash equivalents totaling A$4.3 million (2024: A$1.7 million). An increase/decrease in interest rates of

100 basis points

(2024:

100 basis points

) would have a favorable/adverse effect on profit before tax and equity of $43,446 (2024 $16,575) per annum. The percentage change is based on the expected volatility of interest rates using market data and analysts forecasts.

Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Consolidated Entity. The Consolidated Entity is not exposed to significant credit risk on receivables.

The Consolidated Entity has adopted a lifetime expected loss allowance in estimating expected credit losses to trade receivables through the use of a provisions matrix using fixed rates of credit loss provisioning. These provisions are considered representative across all customers of the Consolidated Entity based on recent sales experience, historical collection rates and forward-looking information that is available.

The Consolidated Entity places its cash deposits with high credit quality financial institutions and by policy, limits the amount of credit exposure to any single counterparty. The Consolidated Entity is averse to principal loss and ensures the safety and preservation of its invested funds by limiting default risk, market risk, and reinvestment risk.

The Consolidated Entity mitigates default risk by constantly positioning its portfolio to respond appropriately to a significant reduction in a credit rating of any financial institution.

Generally, trade receivables are written off when there is no reasonable expectation of recovery. Indicators of this include the failure of a debtor to engage in a repayment plan, no active enforcement activity and a failure to make contractual payments for a period greater than one year.

There are no significant concentrations of credit risk within the Consolidated Entity. The credit risk on liquid funds is limited as the counter parties are banks with high credit ratings.

Credit risk is managed by limiting the amount of credit exposure to any single counter-party for cash deposits.

Liquidity risk

The Consolidated Entity manages liquidity risk by maintaining adequate cash reserves and by continuously monitoring actual and forecast cash flows and matching the maturity profiles of financial assets and liabilities.

Remaining contractual maturities

The following tables detail the Consolidated Entity’s remaining contractual maturity for its financial instrument liabilities. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the financial liabilities are required to be paid. The tables include both interest and principal cash flows disclosed as remaining contractual maturities and therefore these totals may differ from their carrying amount in the statement of financial position.


2025	1 year or less A$’000		Between 1 and 2 years A$’000		Between 2 and 5 years A$’000		Over 5 years A$’000		Remaining contractual maturities A$’000		Carrying Amount A$’000
Non-derivatives
Trade payables		5,645		—		—		—		5,645		5,645
Accrued payables		4,472		—		—		—		4,472		4,472

Total non-derivatives		10,117		—		—		—		10,117		10,117

Derivatives
Other financial liabilities		—		—		3,150		—		3,150		3,150

Total derivatives		—		—		3,150		—		3,150		3,150

Total undiscounted financial liabilities		10,117		—		3,150		—		13,267		13,267

2024	1 year or less A$’000		Between 1 and 2 years A$’000		Between 2 and 5 years A$’000		Over 5 years A$’ 000		Remaining contractual maturities A$’000		Carrying Amount A$’000
Non-derivatives
Trade payables		4,548		—		—		—		4,548		4,548
Accrued payables		10,519		—		—		—		10,519		10,519
Contingent consideration		3,389		—		4,549		—		7,938		7,005

Total non-derivatives		18,456		—		4,549		—		23,005		22,072

Derivatives
Other financial liabilities		—		—		6,478		—		6,478		3,150

Total derivatives		—		—		6,478		—		6,478		3,150

Total undiscounted financial liabilities		18,456		—		11,027		—		29,483		25,222

The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed

above