Announcement PDF Cryosite Limited Appendix 4D Half-year report 1. Company details Name of entity: ABN: Reporting period: Previous period: Reporting Currency: Cryosite Limited 86 090 919 476 For the half-year ended 31 December 2024 For the half-year ended 31 December 2023 Australian Dollars 2. Results for announcement to the market Revenue from ordinary activities Profit before tax for the period from ordinary activities Profit (loss) from ordinary activities after tax attributable to members 31 Dec 2024 $'000 31 Dec 2023 $'000 Change $'000 Change % 6,640 1,118 6,402 961 238 157 4% 16% 838 846 (8) (1%) Dividends On 20 August 2024 the Board of Cryosite Limited declared an unfranked dividend of 2 cents per share which was paid to shareholders on the 10 October 2024, for the financial year ending 30 June 2024. This compares with a 1.5 cent unfranked final dividend, paid to shareholders, during the half-year ending 31 December 2023 (for the financial year ending 30 June 2023). The profit for the Group after providing for income tax amounted to $838,000 (31 December 2023: $846,000). Commentary on the results to the market Results for half-year ending 31 December 2024 reflect a strengthening of trading conditions. ● ● ● ● ● ● Gross profit of $4,251,000, up 7.5%. Earnings before interest, tax, depreciation and amortisation (EBITDA) of $1,518,000, up 15%. Earnings before interest and tax (EBIT) of $1,107,000, up 19%. 2 cents per share unfranked final dividend paid on 10 October 2024, for the financial year ending 30 June 2024 up 33%. The Group had carried-forward tax credits to offset income tax expenses in the prior period, but nil for the current period. No bank borrowings. A further explanation of the result of the current period is set out in the Directors' Report contained in the attached audit reviewed Interim Report. 3. Net tangible assets backing Net tangible assets per ordinary security Reporting period Cents Previous period Cents 3.15 6.20 The calculation of net tangible assets excludes right-of-use assets, intangible assets, and lease liabilities. The key driver of the reduction of net tangible assets backing was due to the Group making an equal share reduction of 5c per share ($2.4m) in February 2024. Cryosite Limited ABN 86 090 919 476 Interim Report - 31 December 2024 Cryosite Limited Contents 31 December 2024 Directors' report Auditor's independence declaration Consolidated statement of profit or loss and other comprehensive income Consolidated statement of financial position Consolidated statement of changes in equity Consolidated statement of cash flows Notes to the consolidated financial statements Directors' declaration Independent auditor's report to the members of Cryosite Limited 1 2 7 8 9 10 11 12 23 24 Cryosite Limited Directors' report 31 December 2024 The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'Group') consisting of Cryosite Limited (referred to hereafter as 'Cryosite', the 'Company' or 'parent entity') and the entity it controlled at the end of, or during, the half-year ended 31 December 2024. Directors The following persons were directors of Cryosite Limited during the whole of the financial half-year and up to the date of this report, unless otherwise stated: Mark Kerr Andrew Kerr Scott Thomas Non-Executive Chairman Executive Director (Non-Executive Director up to 19 August 2024; appointed as Executive Director on 20 August 2024) Non-Executive Director Dividends Dividends paid during the financial half-year were as follows: Consolidated 31 Dec 2024 31 Dec 2023 $'000 $'000 Final unfranked dividend paid during the half-year for the year ended 30 June 2024 of 2.0 cents (30 June 2023: 1.5 cents) per ordinary share. 976 732 Principal activities During the financial half-year the principal activities of the Group consisted of: (1) Clinical trials and biological services logistics: Specialist temperature-controlled storage, sourcing, labelling, status management, secondary packaging, schedule drug distribution, destruction, returns, biological services and cell gene therapies depot services. (2) Cord Blood and tissue storage: Storage of cord blood and tissue samples. Review of operations The profit for the Group after providing for income tax amounted to $838,000, including a tax provision of $280,000 (31 December 2023: $846,000 including a tax provision of $115,000). Earnings per share Cents 31 Dec 2024 31 Dec 2023 Basic earnings per share Diluted earnings per share 1.72 1.72 1.73 1.73 Overview The Directors are delighted to advise that the financial results for the half-year ended 31 December 2024, overall, exceeded the previous financial result for the half-year ended 31 Dec 2023 (prior corresponding period) in terms of Revenue, Operating Profit, EBIT and EBITDA, continuing to build upon our long-term strategy and year-on-year positive momentum at Cryosite. The Group reported revenue from ordinary activities of $6,640,000 (31 December 2023: $6,402,000) and delivered net profit after tax of $838,000 (31 December 2023: $846,000) for the first half of the 2025 financial year. The Directors consider Earnings Before Interest and Tax ('EBIT') and Earnings Before Interest, Tax, Depreciation and Amortisation ('EBITDA') to reflect the core earnings of the Group. EBIT and EBITDA are financial measures which are not prescribed by Australian Accounting Standards ('AAS') and represent the profit under AAS adjusted for non-cash and significant items. The Group's reconciliation of its statutory net profit after tax ('NPAT') for the current and previous year to EBIT and EBITDA is as follows: 2 Cryosite Limited Directors' report 31 December 2024 Reported financials Revenue Cost of providing services Gross profit Net profit after tax Add: Income tax expense Add: Interest expenses Less: Interest revenue calculated using effective interest method EBIT Add: Depreciation and amortisation expense EBITDA 31 Dec 2024 $'000 31 Dec 2023 $'000 Change $'000 Change % 6,640 (2,389) 4,251 6,402 (2,447) 3,955 238 58 296 4% (2%) 7% 838 280 77 846 115 83 (8) 165 (6) (1%) 143% (7%) (88) 1,107 (110) 934 22 173 (20%) 19% 411 391 20 5% 1,518 1,325 193 15% It is particularly pleasing to report a 19% increase in EBIT and a 15% increase in EBITDA in the first-half of 2025. The Group achieved strong operational efficiencies by tightly controlling costs while purposefully investing in our facilities, systems and staff, to optimally position the Group for continued growth. ● ● ● ● ● Revenue from ordinary activities increased by 4% to $6,640,000 in the current period from $6,402,000 in the prior corresponding period. It is particularly pleasing to note strong momentum in the revenue from inbound, storage, and outbound activities that present the highest margin opportunity for Cryosite. Gross profit increased by 7% to $4,251,000 as costs were tightly controlled in the period. EBIT increased by 19% to $1,107,000. EBITDA increased by 15% to $1,518,000 demonstrating the low incremental cost of scaling our business in the immediate future. NPAT decreased by 1% to $838,000 driven by an increase in the Group’s income tax expense (up $165,000 on the prior corresponding period) as there were no carried-forward tax credits remaining in the period. The graph below demonstrates the expanding revenue and EBITDA growth profile of Cryosite against prior comparable periods: The Board declared a final unfranked dividend of 2.0 cents per share for FY2024, a 33% increase from FY2023 (1.5 cent per share). 3 Cryosite Limited Directors' report 31 December 2024 In addition, the Group returned 5c per share ($2.4m) to shareholders in February 2024 via a capital reduction. During the first half of FY2025, the Group undertook a major capital works project and increased the footprint of its existing facility by 17%. The project was fully completed in February 2025. This will allow Cryosite to double the number of freezers and liquid nitrogen tanks on site. On 15 January 2025, the Group launched a new and interactive Investor Hub for dedicated investor engagement. The Investor Hub enables Cryosite’s shareholders, stakeholders and prospective investors to learn more about the entity’s activities and communicate with the Group’s leadership team directly. The Directors are extremely pleased with the positive momentum demonstrated in our half-year December 2024 results. Cryosite is poised for further growth in 2025 as we build upon the investments made to date in our people, processes and facility. The Board would like to thank the Cryosite staff for their outstanding performance and shareholders for their ongoing trust and support. Cashflow The Group has no debt facilities and continues to hold $4,487,000 cash on hand as at 31 December 2024 compared to $4,703,000 cash on hand as at 30 June 2024. The material drivers for the change in cashflow are itemised below: ● Cash balance – 30 June 2024: $4,703,000 o Net cash inflow from operations: $1,140,000 (1HY24: $1,219,000) · Small timing differences of receivables/payables compared to 1HY24. o Net cash outflow from investing activities: ($225,000) (1HY24: $859,000) · Interest income received: $79,000 (1HY24: $55,000). · Capital expenditure on mezzanine extension: ($305,000) (1HY24: ($196,000)) · Note: A $1m long-term deposit was reclassified as cash from non-current assets in 1HY24 (no such adjustment occurred in this period). o Net cash outflow from financing activities: ($1,131,000) (1HY24: ($882,000)) · Dividend payment of 2c per share – October 2024: ($976,000) (1HY24: ($732,000)) · Facility lease expenses: ($155,000) (1HY24: ($150,000)). ● Cash balance – 31 December 2024: $4,487,000 Environmental, social and governance (ESG) Our facility improvements reflect decisions to improve the design, construction, and operations of the facility to reduce our environmental impact. Past and current investments in new capital equipment contributes to our GHG reduction strategy. Our unwavering commitment to sustainability has resulted in our recent achievement of a silver medal from EcoVadis in February 2024. Our updated Governance Policies reflect our commitment to ethical, transparent, and responsible business practices. We are committed to reducing GHG emissions in line with climate science targeting net zero by 2050. Our objective is to understand, manage, and reduce our greenhouse gas emissions across all operational activities. Our Scope 1 and Scope 2 greenhouse gas emissions for the calendar year 2024 was 445 tonnes (Est.) of carbon dioxide equivalent (CO2e). We continue to investigate and refine our reporting of Scope 3 emissions in line with our commitment to our GHG reduction strategy. Stability in the state of affairs Our stability in a changing industry landscape reflects effective strategic planning and execution. It highlights our ability to maintain a steady course while adapting to the evolving needs of our clients and the market. 4 Cryosite Limited Directors' report 31 December 2024 Governance and Management In Governance and Management, our Board steadfastly upholds the highest standards of corporate governance and ethical behaviour. We continue to enhance our ESG policies, integrating our GHG reduction strategy to our environmental guidelines. These updates are designed to align with and reinforce our Group's strategic objectives with our customers and stakeholders, while enhancing transparency and accountability at all levels. Further demonstrating our commitment to continuous improvement, we actively engage in external assessments through the EcoVadis platform. These assessments not only provide valuable insights but also serve as a crucial benchmark against industry standards, guiding our ongoing efforts to elevate our operational practices and ethical standards. Material business risks We remain vigilant in the face of macroeconomic risks, climate change and regulatory compliance challenges. We continue to update and invest in the latest technology and equipment to manage and monitor the impact of the climate on our operations. Our diverse customer base and strategic partnerships are key in helping us manage these risks. Macroeconomic Despite our strong position in the specialist clinical trials storage and logistics sector, we recognise that we are not immune to external economic factors such as inflation, supply chain disruptions and new competitors. Our strategy involves monitoring economic indicators, maintaining strict internal controls, and diversifying our customer base into the new growth sectors such as biological storage and cell & gene therapies storage and depot services leveraging our 23 years of cryogenic cord blood expertise. Regulatory compliance The Group’s purpose-built, modern facility is licensed by the Therapeutic Goods Administration (TGA) of Australia and is Good Manufacturing Practice (GMP) certified to support the specialised needs of highly regulated, temperature-sensitive products. We take our quality obligations and responsibilities seriously. Cryosite maintains accreditations, has thorough knowledge of regulatory systems and utilises best-in-class management systems to ensure our quality processes. Cryosite employs regular and extensive audits to mitigate our risk and ensure our storage facilities meet TGA and our customers’ standards. Additionally, the Group maintains sufficient internal controls to ensure continued compliance with its regulatory obligations as well as all Australian laws and regulations. Privacy and cybersecurity In an era where data security is paramount, the Group has continuously invested in staff training and infrastructure to protect sensitive information and maintain cybersecurity. Cryosite has initiated its journey to align with the Australian Signals Directorate (ASD) Essential Eight Maturity Model. Work, health and safety (‘WHS’) The Group has a zero-risk tolerance for serious safety incidents. The Group deploys a continuous improvement process to its WHS practices, emphasising its established safety culture throughout the organisation, and providing scheduled training for the workforce. Operating risks ● Supply Chain disruption. The Group is part of a global supply chain facilitating the conduct of clinical trials in Australia. Disruption to this supply chain, as we saw during Covid, brings both challenges and opportunities requiring the Group to remain agile in its response. ● Commercial Partners: The Group is aware of the importance of global pharmaceutical and bio-tech companies within its Clinical Trials division and mitigates risk through consistently high levels of customer service, the attraction of new clients, and expansion of its licenses and services. ● Competition: The Group is vigilant regarding the possibility of a new market entrant or a change in the delivery model for Clinical Trials in Australia. It mitigates this risk by holding a number of licenses and certifications, investing in its facilities, services and people and by remaining closely connected to its customers. The Group continually invests in its brand and enjoys a high reputation in Australia and internationally. 5 5/600 Bourke Street Melbourne Vic 3000 Australia Tel +61 3 9252 0800 forvismazars.com/au Auditor’s Independence Declaration to the Directors of Cryosite Limited In relation to our review of the financial report of Cryosite Limited and its controlled entity for the halfyear ended 31 December 2024 to the best of my knowledge and belief, there have been: - no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the review; and - no contraventions of any applicable code of professional conduct in relation to the review. This declaration is in respect of Cryosite Limited and its controlled entity during the half-year ended 31 December 2024. Forvis Mazars Audit & Assurance Pty Ltd Alexis Aupied Director 20 February 2025 Forvis Mazars Audit & Assurance Pty Ltd ABN: 12 134 723 069 Liability limited by a scheme approved under Professional Standards Legislation 7 Cryosite Limited Consolidated statement of profit or loss and other comprehensive income For the half-year ended 31 December 2024 Note Revenue Expenses Administration expenses Cost of providing services Depreciation and amortisation expense Marketing expenses Occupancy expenses Total expenses 4 6,640 6,402 5 (2,379) (2,389) (411) (24) (330) (5,533) (2,283) (2,447) (391) (16) (331) (5,468) 1,107 934 88 (77) 110 (83) 1,118 961 (280) (115) 838 846 - - 838 846 Cents Cents 1.72 1.72 1.73 1.73 5 Operating profit Interest revenue calculated using the effective interest method Finance costs 5 Profit before income tax expense Income tax expense 6 Profit after income tax expense for the half-year attributable to the owners of Cryosite Limited Other comprehensive income for the half-year, net of tax Total comprehensive income for the half-year attributable to the owners of Cryosite Limited Basic earnings per share Diluted earnings per share Consolidated 31 Dec 31 Dec 2024 2023 $'000 $'000 7 7 The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes 8 Cryosite Limited Consolidated statement of financial position As at 31 December 2024 Note Consolidated 31 Dec 30 Jun 2024 2024 $'000 $'000 Assets Current assets Cash and cash equivalents Trade and other receivables Inventories - stock on hand Customer acquisition and fulfilment costs Other assets Total current assets 8 9 4,487 1,845 56 1,082 267 7,737 4,703 1,406 59 1,126 443 7,737 1,485 2,129 2 1,020 6,511 201 11,348 1,451 2,259 4 1,030 7,030 202 11,976 19,085 19,713 1,303 2,061 189 437 284 64 4,338 1,150 2,096 179 217 284 64 3,990 442 10,204 2,168 118 209 295 13,436 442 10,925 2,266 137 209 295 14,274 Total liabilities 17,774 18,264 Net assets 1,311 1,449 3,538 (2,227) 3,538 (2,089) 1,311 1,449 10 Non-current assets Property, plant and equipment Right-of-use assets Intangibles assets Deferred tax assets Customer acquisition and fulfilment costs Other assets Total non-current assets 11 12 10 Total assets Liabilities Current liabilities Trade and other payables Contract liabilities Lease liabilities Provision for income tax Employee benefits Other liabilities Total current liabilities 13 Non-current liabilities Trade and other payables Contract liabilities Lease liabilities Employee benefits Provisions Other liabilities Total non-current liabilities 13 Equity Issued capital Accumulated losses 14 Total equity The above consolidated statement of financial position should be read in conjunction with the accompanying notes 9 Cryosite Limited Consolidated statement of changes in equity For the half-year ended 31 December 2024 Consolidated Balance at 1 July 2023 Issued Accumulated capital losses $'000 $'000 Total equity $'000 5,979 (3,197) 2,782 Profit after income tax expense for the half-year Other comprehensive income for the half-year, net of tax - 846 - 846 - Total comprehensive income for the half-year - 846 846 Transactions with owners in their capacity as owners: Dividends paid (note 15) - (732) (732) 5,979 (3,083) 2,896 Issued Accumulated capital losses $'000 $'000 Total equity $'000 Balance at 31 December 2023 Consolidated Balance at 1 July 2024 3,538 (2,089) 1,449 Profit after income tax expense for the half-year Other comprehensive income for the half-year, net of tax - 838 - 838 - Total comprehensive income for the half-year - 838 838 Transactions with owners in their capacity as owners: Dividends paid (note 15) - (976) (976) 3,538 (2,227) 1,311 Balance at 31 December 2024 The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes 10 Cryosite Limited Consolidated statement of cash flows For the half-year ended 31 December 2024 Note Consolidated 31 Dec 31 Dec 2024 2023 $'000 $'000 Cash flows from operating activities Receipts from customers (inclusive of GST) Payments to suppliers and employees (inclusive of GST) Interest and other finance costs paid Income taxes paid 5,772 (4,505) (77) (50) 5,665 (4,363) (83) - Net cash from operating activities 1,140 1,219 (305) 80 (196) 1,000 55 (225) 859 (976) (155) (732) (150) Net cash used in financing activities (1,131) (882) Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at the beginning of the financial half-year (216) 4,703 1,196 4,731 Cash and cash equivalents at the end of the financial half-year 4,487 5,927 Cash flows from investing activities Payments for property, plant and equipment Investment of cash in short-term deposits Interest received 11 Net cash (used in)/from investing activities Cash flows from financing activities Dividends paid Repayment of lease liabilities 15 The above consolidated statement of cash flows should be read in conjunction with the accompanying notes 11 Cryosite Limited Notes to the consolidated financial statements 31 December 2024 Note 1. General information The financial statements cover Cryosite Limited as a Group consisting of Cryosite Limited and the entity it controlled at the end of, or during, the half-year. The financial statements are presented in Australian dollars, which is Cryosite Limited's functional and presentation currency. Cryosite Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business is: 13a Ferndell Street South Granville NSW 2142 A description of the nature of the Group's operations and its principal activities are included in the directors' report, which is not part of the financial statements. The financial statements were authorised for issue, in accordance with a resolution of directors, on 20 February 2025. Note 2. Material accounting policies These general purpose financial statements for the interim half-year reporting period ended 31 December 2024 have been prepared in accordance with Australian Accounting Standard AASB 134 'Interim Financial Reporting' and the Corporations Act 2001, as appropriate for for-profit oriented entities. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 'Interim Financial Reporting'. These general purpose financial statements do not include all the notes of the type normally included in annual financial statements. Accordingly, these financial statements are to be read in conjunction with the annual report for the year ended 30 June 2024 and any public announcements made by the Company during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001. The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, unless otherwise stated. New or amended Accounting Standards and Interpretations adopted The Group has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period. The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial performance or position of the Group during the half-year ended 31 December 2024 and are not expected to have a significant impact for the full financial year ending 30 June 2025. Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. 12 Cryosite Limited Notes to the consolidated financial statements 31 December 2024 Note 3. Operating segments Identification of reportable operating segments The Group is organised into two operating segments: Clinical trials and biological services logistics and Cord blood and tissue storage. These operating segments are based on the internal reports that are reviewed and used by the Board of Directors (who are identified as the Chief Operating Decision Makers ('CODM')) in assessing performance and in determining the allocation of resources. There is no aggregation of operating segments. Clinical trials and biological services logistics Specialist temperature-controlled storage, sourcing, labelling, status management, secondary packaging, schedule drug distribution, destruction, returns and biological services. Cord blood and tissue storage Storage of cord blood and tissue samples. The CODM review EBITDA (earnings before interest, tax, depreciation and amortisation). The accounting policies adopted for internal reporting to the CODM are consistent with those adopted in the financial statements. The information reported to the CODM is on a monthly basis. Major customers The Group services a highly specialised and often concentrated market segment, of which during the half-year ended 31 December 2024, approximately 76% of the Group's external revenue was derived from sales to three major global clients. Operating segment information Consolidated - 31 Dec 2024 Clinical trials and biological services logistics $'000 Cord blood and tissue storage $'000 Corporate $'000 Total $'000 Revenue Sales to external customers Total revenue 5,477 5,477 1,163 1,163 - 6,640 6,640 2,690 (349) (55) 2,286 342 (14) (6) 322 (1,514) (48) 88 (16) (1,490) 1,518 (411) 88 (77) 1,118 (280) 838 Assets Segment assets Total assets 3,215 8,610 7,260 19,085 19,085 Liabilities Segment liabilities Total liabilities 1,055 12,662 4,057 17,774 17,774 EBITDA Depreciation and amortisation expense Interest revenue Finance costs Profit/(loss) before income tax expense Income tax expense Profit after income tax expense 13 Cryosite Limited Notes to the consolidated financial statements 31 December 2024 Note 3. Operating segments (continued) Consolidated - 31 Dec 2023 Clinical trials and biological services logistics $'000 Cord blood and tissue storage $'000 Corporate $'000 Total $'000 Revenue Sales to external customers Total revenue 5,276 5,276 1,126 1,126 - 6,402 6,402 2,361 (331) (59) 1,971 287 (13) (6) 268 (1,323) (47) 110 (18) (1,278) 1,325 (391) 110 (83) 961 (115) 846 Assets Segment assets Total assets 2,726 9,271 7,716 19,713 19,713 Liabilities Segment liabilities Total liabilities 1,265 13,054 3,945 18,264 18,264 EBITDA Depreciation and amortisation expense Interest revenue Finance costs Profit/(loss) before income tax expense Income tax expense Profit after income tax expense Consolidated - 30 Jun 2024 Geographical information The sales to external customers for both operating segments are from Australia. Note 4. Revenue Consolidated 31 Dec 31 Dec 2024 2023 $'000 $'000 Revenue from contracts with customers Revenue from clinical trials, logistics and biological services Revenue from cord blood and tissue storage (i) 5,477 1,163 5,276 1,126 Revenue 6,640 6,402 Consolidated 31 Dec 31 Dec 2024 2023 $'000 $'000 (i) Cord blood and tissue storage is comprised of: Cord blood and tissue storage revenue Cord blood historical contract revenue Total cord blood and tissue storage revenue 14 268 895 208 918 1,163 1,126 Cryosite Limited Notes to the consolidated financial statements 31 December 2024 Note 4. Revenue (continued) Consolidated 31 Dec 31 Dec 2024 2023 $'000 $'000 * Cord blood deferred revenues and costs are comprised of: Cord blood historical contract liabilities Cord blood historical contract assets Cord blood historical deferred income tax expense 895 (563) (83) 918 (598) (80) Total cord blood historical deferred net income 249 240 * Refer to note 3 'Operating segments'. Disaggregation of revenue The disaggregation of revenue from contracts with customers is as follows: Consolidated 31 Dec 31 Dec 2024 2023 $'000 $'000 Geographical regions Australia* 6,640 6,402 Timing of revenue recognition Goods transferred at a point in time Services transferred over time 3,488 3,152 3,418 2,984 6,640 6,402 * The geographical regions are determined based on the place where the services occur. 15 Cryosite Limited Notes to the consolidated financial statements 31 December 2024 Note 5. Expenses Consolidated 31 Dec 31 Dec 2024 2023 $'000 $'000 Profit before income tax includes the following specific expenses: Depreciation and amortisation expense Depreciation - Property plant and equipment Depreciation - Right-of-use assets Amortisation - Intangibles assets 279 130 2 259 130 2 Total depreciation and amortisation 411 391 Finance costs Interest portion of monies owed to ACCC Interest and finance charges paid/payable on lease liabilities 11 66 12 71 Finance costs expensed 77 83 Superannuation expense Defined contribution superannuation expense 177 151 1,346 1,309 Employee benefits expense excluding superannuation Employee benefits expense excluding superannuation Note 6. Income tax Consolidated 31 Dec 31 Dec 2024 2023 $'000 $'000 Income tax expense Current tax Deferred tax - origination and reversal of temporary differences 270 10 164 (49) Aggregate income tax expense 280 115 1,118 961 280 240 - (125) 280 115 Numerical reconciliation of income tax expense and tax at the statutory rate Profit before income tax expense Tax at the statutory tax rate of 25% Tax effect amounts which are not deductible/(taxable) in calculating taxable income: Prior year tax losses not recognised now recouped Income tax expense The income tax expense is recognised based on the best estimate of the weighted average annual income tax rate. The estimate takes into account the unutilised tax losses and anticipated tax payable. 16 Cryosite Limited Notes to the consolidated financial statements 31 December 2024 Note 7. Earnin