Announcement PDF Half Year Report - Dec 2023 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 2023 For the half-year ended 31 December 2022 Australian Dollars 2. Results for announcement to the market $'000 Revenues from ordinary activities up 11.9% to 6,402 Profit from ordinary activities after tax attributable to the owners of Cryosite Limited up 24.6% to 846 Profit for the half-year attributable to the owners of Cryosite Limited up 24.6% to 846 Dividends On 24 August 2023 the Board of Cryosite Limited declared an unfranked dividend of 1.5 cents per share which was paid to shareholders on the 6 of October 2023, for the year ending 30 June 2023. This compares with a 1 cent unfranked final dividend, paid to shareholders, for the year ending 30 June 2022. Commentary on the results to the market Results for half-year ending 31 December 2023 reflect a strengthening of trading conditions. ● ● ● ● ● ● Revenue of $6,402,000 from ordinary activities, up 11.9%. Net profit of $846,000, up 24.6%. Earnings per share of 1.73 cents, up 24.7%. 1.5 cents per share unfranked final dividend paid on 6 October 2023, for the year ending 30 June 2023, up 50%. Cash and cash equivalents of $5,927,000, up $942,000 from prior period’s cash on hand of $4,985,000. 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 6.20 4.37 The calculation of net tangible assets excludes right-of-use assets, intangible assets, and lease liabilities. Cryosite Limited Appendix 4D Half-year report cryosite{;) 0 4. Dividends Current period Amount Franked per amount per security security Cents Cents Final unfranked dividend for the year ended 30 June 2023 1.50 Previous period Amount Franked per amount per security security Cents Cents Final unfranked dividend for the year ended 30 June 2022 1.00 5. Audit qualification or review The financial statements were subject to a review by the auditors and the review report is attached as part of the Interim Report. 6. Attachments The Interim Report of Cryosite Limited for the half-year ended 31 December 2023 is attached. 7. Signed Signed ;t/10(/ri, Mark Kerr Non-Executive Chairman Date: 22 February 2024 ? ,. Cryosite Limited ABN 86 090 919 476 Interim Report - 31 December 2023 Cryosite Limited Contents 31 December 2023 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 6 7 8 9 10 11 22 23 Cryosite Limited Directors' report 31 December 2023 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 2023. 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: John Hogg (appointed on 8 December 2023) Andrew Kroger Mark Kerr (appointed on 8 December 2023) Steven Waller (resigned on 8 December 2023) Nicola Swift (resigned on 8 December 2023) Luis Antonio (resigned on 8 December 2023) CEO and Managing Director Non-Executive Director Non-Executive Chairman Former Non-Executive Chairman Former Non-Executive Director Former Non-Executive Director Dividends Dividends paid during the financial half-year were as follows: Consolidated 31 Dec 2023 31 Dec 2022 $'000 $'000 Final unfranked dividend for the year ended 30 June 2023 (31 December 2022: 30 June 2022) of 1.5 cents (31 December 2022: 1.0 cents) per ordinary share 732 488 Review of operations The profit for the Group after providing for income tax amounted to $846,000 (31 December 2022: $679,000). Earnings per share Cents 31 Dec 2023 31 Dec 2022 Basic earnings per share Diluted earnings per share 1.73 1.73 1.39 1.39 Principal activities and segments Our strategy of diversification is starting to yield positive results, expanding our service portfolio to provide a comprehensive range of solutions across the temperature spectrum. These include: (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. 2 Cryosite Limited Directors' report 31 December 2023 Overview The financial results for the half-year ended 31 December 2023 exceeds the previous financial result for the half-year ended 31 December 2022 (prior corresponding period), continuing to build upon our long-term strategy. There has been a return of year-on-year positive momentum at Cryosite in the second half of 2023 as customers' trading patterns emerge from the aftermath of the pandemic. ● ● ● ● ● ● Revenue from ordinary activities increased by 11.9% to $6,402,000 in the current period from $5,722,000 in the prior corresponding period. Net profit after tax of $846,000. An increase of 24.6% on prior half-year. Earnings per share: 1.73 cents. An increase of 24.7% on a fully diluted basis from prior half year. $5,927,000 of cash and cash equivalents as at 31 December 2023. This is an increase of $196,000 over the $4,731,000 in cash plus an additional $1,000,000 in a longer duration term deposit held at 30 June 2023. The Group has no external borrowings. Net cash from operations of $1,219,000 up by 276% from $324,000 in the prior half-year. Net tangible asset backing per share increased to 6.20 per share as at 31 December 2023 from 5.86 cents as at 30 June 2023. The Group reporting revenues from ordinary activities of $6,402,000 (31 December 2022: $5,722,000) and delivered net profit after tax of $846,000 (31 December 2022: $679,000). It is particularly pleasing to report a 11.9% growth in revenue from ordinary activities in the first half of 2024. The Group tightly controls costs but purposefully invests in facilities, systems and staff, to optimally position the Group for continued growth. A positive expansion in gross margins was offset with an increase in operational expenses, primarily driven by inflation. The Board declared a 50% increase in the final unfranked dividend to 1.5 cents per share, for 2023, following the resumption of a dividend payments in 2022 with a final unfranked dividend of 1.0 cent per share declared for that year. The net tangible assets per ordinary share have been increased by 0.3 cents, from 5.9 cents on 30 June 2023 to 6.2 cents on 31 December 2023. Cashflow The Group has no debt facilities and continues to hold $5,927,000 cash on hand as at 31 December 2023. Compared to $4,731,000 of cash plus the $1,000,000 long-term deposit of the Group as at 30 June 2023, is an increase of $196,000 over the six months. The reported net cash from operations of the Group during first half financial year 2024 was $1,219,000 (1HY23: $324,000). The significant increase was driven by the increased collections in the first half year of 2024, as well as the receivable timing differences which negatively impacted the same period last year. Cashflow from investing activities was $859,000 (1HY23: -$37,000). This is the result of the $1,000,000 longterm deposit as at 30 June 2023 which was now classified as cash as at 31 December 2023 (1HY23: $nil), plus payments for Capex -$196,000 (1HY23: -$70,000) and interest income received $55,000 (1HY23: $33,000). Cashflow from financing activities was -$882,000 (1HY23: -$644,000), which include the lease payment of our facility -$150,000 (1HY23: -$156,000) and the dividend payment of -$732,000 (1HY23: -$488,000). 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. 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. 3 Cryosite Limited Directors' report 31 December 2023 Governance and Management In Governance and Management, our Board steadfastly upholds the highest standards of corporate governance and ethical behaviour. We significantly enhanced our ESG policies in the last quarter, integrating environmental guidelines, a robust supplier code of conduct, and stringent modern slavery policies. These updates are designed to align with and reinforce our Group's strategic objectives 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 HVAC 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 22 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, we have 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. 4 Cryosite Limited Directors' report 31 December 2023 cryosite� 0 Significant changes in the state of affairs There were no significant changes in the state of affairs of the Group during the financial half-year. Rounding of amounts The Group is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian Securities and Investments Commission, relating to 'rounding-off. Amounts in this report have been rounded off in accordance with that Corporations Instrument to the nearest thousand dollars, or in certain cases, the nearest dollar. Acknowledgments and gratitude In conclusion, I wish to express my profound appreciation for your continued support and trust. The stability and success we have realised stand as a testament to the collective effort and dedication of our entire team, the enduring relationships with our clients and suppliers, and, most importantly, the steadfast support of our shareholders. This collaborative achievement underscores the strength of our partnerships and the shared commitment to our enduring success. Auditor's independence declaration A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out immediately after this directors' report. This report is made in accordance with a resolution of directors, pursuant to section 306(3)(a) of the Corporations Act 2001. On behalf of the directors P/41.K M;f;:c Mark Kerr Non-Executive Cha�� 22 February 2024 5 Level 12, 90 Arthur Street North Sydney NSW 2060 PO Box 1994 North Sydney NSW 2059 Australia Tel: +61 2 9922 1166 Fax: +61 2 9922 2044 www.mazars.com.au AUDITORS’ INDEPENDENCE DECLARATION In relation to our review of the financial report of Cryosite Limited and its controlled entity for the halfyear ended 31 December 2023, 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 2023. MAZARS RISK & ASSURANCE PTY LIMITED Rosemary Megale Director Sydney, 22 February 2024 6 Mazars Risk & Assurance Pty Limited ABN: 39 151 805 275 Liability limited by a scheme approved under Professional Standards Legislation Cryosite Limited Consolidated statement of profit or loss and other comprehensive income For the half-year ended 31 December 2023 Note Revenue Expenses Administration expenses Cost of providing services Depreciation and amortisation expense Marketing expenses Occupancy expenses Total expenses 4 6,402 5,722 5 (2,283) (2,447) (391) (16) (331) (5,468) (2,114) (2,270) (345) (9) (292) (5,030) 934 692 110 (83) 46 (35) 961 703 (115) (24) 846 679 - - 846 679 Cents Cents 1.73 1.73 1.39 1.39 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 2023 2022 $'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 7 Cryosite Limited Consolidated statement of financial position As at 31 December 2023 Note Consolidated 31 Dec 30 Jun 2023 2023 $'000 $'000 Assets Current assets Cash and cash equivalents Term deposit maturing after three months Trade and other receivables Inventories - stock on hand Customer acquisition and fulfilment costs Other assets Total current assets 8 5,927 1,965 88 1,161 267 9,408 4,731 1,000 1,727 60 1,195 468 9,181 1,462 2,390 6 1,108 7,593 204 12,763 1,516 2,520 8 1,059 8,156 207 13,466 22,171 22,647 1,333 2,071 170 164 266 60 4,064 1,254 2,040 161 262 60 3,777 442 11,718 2,357 127 209 358 15,211 442 12,539 2,445 95 209 358 16,088 Total liabilities 19,275 19,865 Net assets 2,896 2,782 5,979 (3,083) 5,979 (3,197) 2,896 2,782 9 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 6 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 6 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 8 Cryosite Limited Consolidated statement of changes in equity For the half-year ended 31 December 2023 Consolidated Balance at 1 July 2022 Issued Accumulated capital losses $'000 $'000 Total equity $'000 5,979 (4,118) 1,861 Profit after income tax expense for the half-year Other comprehensive income for the half-year, net of tax - 679 - 679 - Total comprehensive income for the half-year - 679 679 Transactions with owners in their capacity as owners: Dividends paid (note 15) - (488) (488) 5,979 (3,927) 2,052 Issued Accumulated capital losses $'000 $'000 Total equity $'000 Balance at 31 December 2022 Consolidated Balance at 1 July 2023 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 Balance at 31 December 2023 The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes 9 Cryosite Limited Consolidated statement of cash flows For the half-year ended 31 December 2023 Note Consolidated 31 Dec 31 Dec 2023 2022 $'000 $'000 Cash flows from operating activities Receipts from customers (inclusive of GST) Payments to suppliers and employees (inclusive of GST) 5,665 (4,446) 4,552 (4,228) Net cash from operating activities 1,219 324 (196) 1,000 55 (70) 33 859 (37) (732) (150) (488) (156) Net cash used in financing activities (882) (644) Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the financial half-year Effects of exchange rate changes on cash and cash equivalents 1,196 4,731 - (357) 5,341 1 Cash and cash equivalents at the end of the financial half-year 5,927 4,985 Cash flows from investing activities Payments for property, plant and equipment Investment of cash in short-term deposits Interest received 11 Net cash from/(used in) 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 10 Cryosite Limited Notes to the consolidated financial statements 31 December 2023 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 22 February 2024. Note 2. Material accounting policies These general purpose financial statements for the interim half-year reporting period ended 31 December 2023 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 2023 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. Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. Comparatives Comparative information has been reclassified where applicable to align with the current period presentation. There has been no effect on the profit for the comparative half-year or the net assets of the Group. 11 Cryosite Limited Notes to the consolidated financial statements 31 December 2023 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 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 2023, approximately 68% of the Group's external revenue was derived from sales to three major global clients. Operating segment information Consolidated - 31 Dec 2023 Clinical trials and biological services logistics $'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 3,256 9,946 8,969 22,171 22,171 Liabilities Segment liabilities Total liabilities 1,383 13,893 3,999 19,275 19,275 EBITDA Depreciation and amortisation Interest revenue Finance costs Profit/(loss) before income tax expense Income tax expense Profit after income tax expense 12 Cord blood and tissue storage Unallocated $'000 $'000 Total $'000 Cryosite Limited Notes to the consolidated financial statements 31 December 2023 Note 3. Operating segments (continued) Consolidated - 31 Dec 2022 Clinical trials and biological services logistics $'000 Revenue Sales to external customers Total revenue 4,561 4,561 1,161 1,161 - 5,722 5,722 1,876 (288) (29) 1,559 303 (12) (3) 288 (1,142) (45) 46 (3) (1,144) 1,037 (345) 46 (35) 703 (24) 679 Assets Segment assets Total assets 3,072 10,627 8,948 22,647 22,647 Liabilities Segment liabilities Total liabilities 1,237 14,767 3,861 19,865 19,865 EBITDA Depreciation and amortisation Interest revenue Finance costs Profit/(loss) before income tax expense Income tax expense Profit after income tax expense Cord blood and tissue storage Unallocated $'000 $'000 Total $'000 Consolidated - 30 Jun 2023 13 Cryosite Limited Notes to the consolidated financial statements 31 December 2023 Note 4. Revenue Consolidated 31 Dec 31 Dec 2023 2022 $'000 $'000 Revenue from contracts with customers Revenue from clinical trials, logistics and biological services Revenue from cord blood and tissue storage (i) 5,276 1,126 4,561 1,161 Revenue 6,402 5,722 Consolidated 31 Dec 31 Dec 2023 2022 $'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 208 918 192 969 1,126 1,161 Consolidated 31 Dec 31 Dec 2023 2022 $'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 918 (598) (80) 969 (626) (86) Total cord blood historical deferred net income 240 257 * 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 2023 2022 $'000 $'000 Geographical regions Australia* 6,402 5,722 Timing of revenue recognition Goods transferred at a point in time Services transferred over time 3,418 2,984 2,818 2,904 6,402 5,722 * The geographical regions are determined based on the place where the services occur. 14 Cryosite Limited Notes to the consolidated financial statements 31 December 2023 Note 5. Expenses Consolidated 31 Dec 31 Dec 2023 2022 $'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 259 130 2 229 114 2 Total depreciation and amortisation 391 345 Finance costs Interest portion of monies owed to ACCC Interest and finance charges paid/payable on lease liabilities 12 71 14 21 Finance costs expensed 83 35 Superannuation expense Defined contribution superannuation expense 151 142 1,309 1,237 Employee benefits expense excluding superannuation Employee benefits expense excluding superannuation Note 6. Income tax Consolidated 31 Dec 31 Dec 2023 2022 $'000 $'000 Income tax expense Current tax Deferred tax - origination and reversal of temporary differences 164 (49) 190 (166) Aggregate income tax expense 115 24 Numerical reconciliation of income tax expense and tax at the statutory rate Profit before income tax expense 961 703 Tax at the statutory tax rate of 25% 240 176 Tax effect amounts which are not deductible/(taxable) in calculating taxable income: Prior year tax losses not recognised now recouped (125) (152) Income tax expense 115 24 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. 15 Cryosite Limited Notes to the consolidated financial statements 31 December 2023 Note 7. Earnings per share Consolidated 31 Dec 31 Dec 2023 2022 $'000 $'000 Profit after income tax attributable to the owners of Cryosite Limited 846 679 Number Number Weighted average number of ordinary shares used in calculating basic earnings per share 48,809,563 48,809,563 Weighted average number of ordinary shares used in calculating diluted earnings per share 48,809,563 48,809,563 Basic earnings per share Diluted earnings per share Cen