ACUSENSUS LIMITED. — Interim / Quarterly Report 2024

Feb 25, 2024

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Acusensus Limited Appendix 4D Half-year report

1. Company details

Name of entity: Acusensus Limited ABN: 17 625 231 941 Reporting period: For the half-year ended 31 December 2023 Previous period: For the half-year ended 31 December 2022

2. Results for announcement to the market

2. Results for announcement to the market
				31 Dec 2023	31 Dec 2022
				$	$
Revenues from ordinary activities	up	24.7%	to	24,735,744	19,837,768
Loss from ordinary activities after tax attributable to the owners
of Acusensus Limited	down	8.1%	to	(241,430)	(262,802)
Loss for the half-year attributable to the owners of Acusensus
Limited	down	8.1%	to	(241,430)	(262,802)

Dividends

There were no dividends paid, recommended or declared for the half-year ended 31 December 2023 nor for the comparative half-year ended 31 December 2022.

Comments

The consolidated entity’s revenue for the half-year ended 31 December 2023 totaled $24,735,744, an increase of 24.7% in comparison to the half-year ended 31 December 2022, where revenue totaled $19,837,768. The increase in revenue is largely due to:

• Australian Capital Territory mobile phone detection camera contract and Queensland trailer-based transportable speed camera contract;

• variations and expansion of contracts with some existing customers; and

• growth from international markets, namely the United Kingdom (UK) and United States (US).

The consolidated entity generated an operating loss after income tax expense of $241,430 (31 December 2022: operating loss after income tax expense of $262,802). Despite revenue growth, the operating loss after income tax expense remains relatively in line with prior year due to higher operating expenses as the business invested for future growth.

3. Net tangible assets

Net tangible assets per ordinary security	31 Dec 2023 $ 0.27	31 Dec 2022 $ 0.16

4. Control gained or lost over entities

Not applicable.

5. Dividends

There were no dividends paid, recommended or declared for the half-year ended 31 December 2023 nor for the comparative half-year ended 31 December 2022.

Acusensus Limited Appendix 4D Half-year report

6. Dividend reinvestment plan

Not applicable.

7. Details of associates and joint venture entities

Not applicable.

8. Foreign entities

The Company’s foreign entities include Acusensus, Inc. (incorporated in the United States) and Acusensus UK Limited (incorporated in the United Kingdom). The Company’s foreign entities’ financial results are compiled in accordance with International Financial Reporting Standards (IFRS).

9. Audit qualification or review

Details of audit/review dispute or qualification (if any):

The financial statements were subject to a review by the auditors and the review report is attached as part of the half-year financial statements.

10. Attachments

Details of attachments (if any):

The half-year financial statements of Acusensus Limited for the half-year ended 31 December 2023 is attached.

11. Signed

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Signed _________

Date: 26 February 2024

Alexander Jannink Director Melbourne, Australia

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Acusensus Limited

ACN 625 231 941

Half-Year Financial Statements – 31 December 2023

Acusensus Limited Directors' report 31 December 2023

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The Directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'consolidated entity') consisting of Acusensus Limited (referred to hereafter as the 'Company' or 'parent entity') and the entities it controlled at the end of, or during, the half-year ended 31 December 2023.

Directors

The following persons were Directors of Acusensus Limited during the whole of the financial half-year and up to the date of this report, unless otherwise stated:

Alexander Jannink Ravin Mirchandani Susan Klose Michael Giuffrida (appointed 9 October 2023)

Principal activities

During the financial half-year the principal activities of the consolidated entity consisted of the provision of world-leading technology to detect and capture prosecutable evidence of drivers’ illegal mobile phone use, seatbelt use, and speed detection.

There has been no significant changes in the nature of these activities during the half-year.

Review of operations

The consolidated entity’s revenue for the half-year ended 31 December 2023 totaled $24,735,744, an increase of 24.7% in comparison to the half-year ended 31 December 2022, where revenue totaled $19,837,768. The increase in revenue is largely due to:

• Australian Capital Territory mobile phone detection camera contract and Queensland trailer-based transportable speed camera contract;

• variations and expansion of contracts with some existing customers; and

• growth from international markets, namely the United Kingdom (UK) and United States (US).

The consolidated entity generated an operating loss after income tax expense of $241,430 (31 December 2022: operating loss after income tax expense of $262,802). Despite revenue growth, the operating loss after income tax expense remains relatively in line with prior year due to higher operating expenses as the business invested for future growth.

The strength and demand for the Company’s products in Australia has continued and is evidenced by the signing of new contracts, as well as, extension and expansion of existing contracts. Further to the aforementioned contracts:

• On 26 July 2023, the Company announced Acusensus Australia Pty Ltd, a wholly owned subsidiary of Acusensus Limited, entered into a contract with the Queensland Department of Transport and Main Roads for the provision of phone awareness monitoring and tailgating monitoring services to support public awareness road safety initiatives. In an Australian first and with the aim of improving driver behaviour, the technology will be deployed in pilots to monitor and detect drivers who are using a mobile phone whilst driving, before providing an immediate signage prompt to alert those drivers of this unsafe behaviour. Monitoring and similar signage prompts will also be given to drivers who are tailgating other motorists. The services outlined in the agreement are expected to be completed before October 2024. The estimated total contract value over the term of the agreement is in excess of $0.6 million (excluding GST).

• On 15 August 2023, the Company announced Acusensus Australia Pty Ltd, a wholly owned subsidiary of Acusensus Limited, entered into a contract variation with the Queensland Department of Transport and Main Roads to increase the scope of the contract. Additional transportable systems for mobile phone and seatbelt detection services will be provided over a five-year term. The estimated contract variation value over the term of the agreement is $9.3 million (excluding GST).

• On 29 November 2023, the Company announced Acusensus Australia Pty Ltd, a wholly owned subsidiary of Acusensus Limited, extended the existing mobile phone detection camera agreement with Transport for New South Wales for an additional year of services until 30 November 2024. The contract extension value is expected to total $4.1 million (excluding GST).

In addition, Acusensus continues to build interest and awareness in the Company’s solutions to enforce distracted driving and speed internationally.

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Acusensus Limited Directors' report 31 December 2023

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Review of operations (continued)

In the US, the Company has signed a short-term contract with the Arkansas Department for real-time speed enforcement in work zones. It is also continuing negotiations with three other clients who have been successful in applying for federal grant funding for the use of distracted driving detection solutions.

In the UK, the Company is in discussions with a number of road and police authorities for pilots and has an ongoing relationship with Devon & Cornwall Police, following on from a successful pilot in the financial half-year.

The Company continues to make progress with new product development initiatives. The Acusensus Guardian roadworker protection product commenced real-world testing, while the Company’s impaired driving project is expected to commence real-world testing in the coming months.

The Company successfully enacted a re-organisation to best position itself for scale and growth. The new structure in place creates a foundation to increase sales activity and to grow services sustainably across multiple contracts. The Company is investing in people and processes ahead of FY25.

Significant changes in the state of affairs

There were no significant changes in the state of affairs of the consolidated entity during the financial half-year.

Matters subsequent to the end of the financial half-year

On 8 January 2024, the Company announced Acusensus Australia Pty Ltd, a wholly owned subsidiary of Acusensus Limited, entered into a contract with the South Australia Government for the provision of fixed mobile phone detection camera. The agreement is for a five-year term, with an option for an additional one year. The estimated total contract value over the initial five-year term of the agreement is $5 million (excluding GST).

No other matter or circumstance has arisen since 31 December 2023 that has significantly affected, or may significantly affect the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial years.

Rounding of amounts

The Company 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 dollar.

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 and forms part of the 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

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_________ Alexander Jannink Director

26 February 2024 Melbourne, Australia

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Tel: +61 3 9603 1700 Fax: +61 3 9602 3870 www.bdo.com.au

Collins Square, Tower Four Level 18, 727 Collins Street Melbourne VIC 3008 GPO Box 5099 Melbourne VIC 3001 Australia

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DECLARATION OF INDEPENDENCE BY SALIM BISKRI TO THE DIRECTORS OF ACUSENSUS LIMITED

As lead auditor for the review of Acusensus Limited for the half-year ended 31 December 2023, I declare that, to the best of my knowledge and belief, there have been:

1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

2. No contraventions of any applicable code of professional conduct in relation to the review.

This declaration is in respect of Acusensus Limited and the entities it controlled during the period.

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Salim Biskri Director

BDO Audit Pty Ltd

Melbourne, 26 February 2024

BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.

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Acusensus Limited Contents 31 December 2023

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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 consolidated financial statements	9
Directors' declaration	18
Independent auditor's review report to the members of Acusensus Limited	19

General information

The financial statements cover Acusensus Limited as a consolidated entity consisting of Acusensus Limited and the entities it controlled at the end of, or during, the half-year. The financial statements are presented in Australian dollars, which is Acusensus Limited's functional and presentation currency.

Acusensus Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business is:

Level 6, 31 Queen Street

Melbourne, VIC 3000

A description of the nature of the consolidated entity'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 26 February 2024. The Directors have the power to amend and reissue the financial statements.

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Acusensus Limited Consolidated statement of profit or loss and other comprehensive income For the half-year ended 31 December 2023

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Acusensus Limited Consolidated statement of profit or loss and other comprehensive income For the half-year ended 31 December 2023
Note Revenue 2 Other income 3 Expenses Cost of services Employee benefits 4 Depreciation and amortisation 4 Administration IPO transaction costs 4 Contracting Impairment Marketing Finance costs 4 Loss before income tax Income tax (expense)/benefit Loss after income tax for the half-year attributable to the owners of Acusensus Limited Other comprehensive income/(loss) for the half-year, net of tax: Items that may be reclassified subsequently to profit or loss Foreign currency translation Total comprehensive loss for the half-year attributable to the owners of Acusensus Limited Basic loss per share 14 Diluted loss per share 14	Consolidated 31 Dec 2023 31 Dec 2022 $ $ 24,735,744 19,837,768 855,926 246,216 (13,600,682) (11,401,055) (5,295,318) (3,871,546) (2,987,984) (2,047,243) (2,425,271) (1,364,245) - (674,639) (877,930) (589,695) (425,360) (220,298) (75,576) (137,468) (37,575) (40,597) (134,026) (262,802) (107,404) - (241,430) (262,802) (84,340) 20,661
	(134,026) (107,404)
	(241,430) (84,340)
	(325,770)	(242,141)
	Cents 0.00 0.00	Cents 0.00 0.00

*Basic and diluted loss per share have been rounded to two decimal places.

The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.

5

Acusensus Limited Consolidated statement of financial position As at 31 December 2023

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Note Assets Current assets Cash and cash equivalents 5 Trade and other receivables 6 Contract assets Inventories Other current assets 7 Total current assets Non-current assets Property, plant and equipment 8 Right-of-use assets 9 Intangibles 10 Other assets Total non-current assets Total assets Liabilities Current liabilities Trade and other payables 11 Contract liabilities Lease liabilities Provisions Income tax payable Total current liabilities Non-current liabilities Contract liabilities Lease liabilities Provisions Net deferred tax liability Total non-current liabilities Total liabilities Net assets Equity Issued capital 12 Reserves 13 Accumulated losses Total equity	Consolidated 31 Dec 2023 30 Jun 2023 $ $ 9,149,395 12,799,109 10,402,215 8,592,832 510,017 813,824 1,771,095 1,374,423 12,000,000 12,000,000 33,832,722 35,580,188 9,345,096 9,189,666 1,554,823 2,050,071 2,070,299 1,517,476 126,495 127,232 13,096,713 12,884,445 46,929,435 48,464,633 5,552,975 5,831,095 1,452,219 3,019,265 1,057,369 1,487,895 774,148 744,487 172,051 - 9,008,762 11,082,742 173,347 89,461 624,809 699,844 536,699 412,394 191,696 256,343 1,526,551 1,458,042 10,535,313 12,540,784 36,394,122 35,923,849 37,570,540 37,455,540 2,612,937 2,016,234 (3,789,355) (3,547,925) 36,394,122 35,923,849
	12,000,000
	33,832,722
	9,345,096 1,554,823 2,070,299 126,495
	13,096,713
	46,929,435
	5,552,975 1,452,219 1,057,369 774,148 172,051
	9,008,762
	173,347 624,809 536,699 191,696
	1,526,551
	10,535,313
	36,394,122
	37,570,540 2,612,937 (3,789,355)
	36,394,122

The above consolidated statement of financial position should be read in conjunction with the accompanying notes.

6

Acusensus Limited Consolidated statement of changes in equity For the half-year ended 31 December 2023

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Consolidated Balance at 1 July 2022 Loss after income tax for the half-year Other comprehensive income for the half-year, net of tax Total comprehensive loss for the half-year Transactions with owners in their capacity as owners: Contributions of equity, net of transaction costs Share-based payments Balance at 31 December 2022 Consolidated Balance at 1 July 2023 Loss after income tax for the half-year Other comprehensive loss for the half-year, net of tax Total comprehensive loss for the half-year Transactions with owners in their capacity as owners: Contributions of equity, net of transaction costs Share-based payments Balance at 31 December 2023	Issued capital $ 18,831,559 - -	Reserves $ 1,535,379 - 20,661	Accumulated losses $ (3,603,298) (262,802) -	Total equity $ 16,763,640 (262,802) 20,661
	- 1,580 -	20,661 - 198,168	(262,802) - -	(242,141) 1,580 198,168
	18,833,139	1,754,208	(3,866,100)	16,721,247
	Issued capital $ 37,455,540 - -	Reserves $ 2,016,234 - (84,340)	Accumulated losses $ (3,547,925) (241,430) -	Total equity $ 35,923,849 (241,430) (84,340)
	- 115,000 -	(84,340) - 681,043	(241,430) - -	(325,770) 115,000 681,043
	37,570,540	2,612,937	(3,789,355)	36,394,122

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

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Acusensus Limited Consolidated statement of cash flows For the half-year ended 31 December 2023

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Note Cash flows from operating activities Receipts from customers Government grants and stimulus received Other income Payments to suppliers and employees Interest received Interest paid Net cash from/(used in) operating activities 15 Cash flows from investing activities Payments for property, plant and equipment Payments for intangibles Net cash used in investing activities Cash flows from financing activities Proceeds from issue of shares Capitalised IPO transaction costs Repayment of lease liabilities Net cash used in financing activities Net 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 Cash and cash equivalents (inclusive of restricted balances) at the end of the financial half-year 5	Consolidated 31 Dec 2023 31 Dec 2022 $ $ 22,446,138 18,043,512 - 36,600 11,211 207,691 (22,368,022) (19,244,905) 399,784 1,924 (37,575) (40,597) 451,536 (995,775) (2,360,325) (1,114,205) (963,480) (523,544) (3,323,805) (1,637,749) 115,000 1,580 - (1,379,180) (798,219) (577,561) (683,219) (1,955,161) (3,555,488) (4,588,685) 12,799,109 8,606,528 (94,226) (23,905) 9,149,395 3,993,938	Consolidated 31 Dec 2023 31 Dec 2022 $ $ 22,446,138 18,043,512 - 36,600 11,211 207,691 (22,368,022) (19,244,905) 399,784 1,924 (37,575) (40,597) 451,536 (995,775) (2,360,325) (1,114,205) (963,480) (523,544) (3,323,805) (1,637,749) 115,000 1,580 - (1,379,180) (798,219) (577,561) (683,219) (1,955,161) (3,555,488) (4,588,685) 12,799,109 8,606,528 (94,226) (23,905) 9,149,395 3,993,938
	451,536
	(2,360,325) (963,480)
	(3,323,805)
	115,000 - (798,219)
	(683,219)
	(3,555,488) 12,799,109 (94,226) 9,149,395
		3,993,938

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.

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Acusensus Limited Notes to the consolidated financial statements 31 December 2023

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Note 1. Significant accounting policies

These general purpose financial statements for the 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.

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 principal accounting policies adopted are consistent with those of the previous financial year and corresponding halfyear reporting period, unless otherwise stated.

New or amended Accounting Standards and Interpretations adopted

The consolidated entity 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.

Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.

Operating segments

Identification of reportable operating segments

These operating segments are identified based on the internal reports that are reviewed and used by the Board of Directors in assessing performance and in determining the allocation of resources. Similar operating segments can be aggregated to form one reportable segment. Accordingly, the consolidated entity only operates as one segment.

Accounting policy for operating segments

Operating segments are presented using the 'management approach', where the information presented is on the same basis as the internal reports provided to the Board of Directors. The Directors are responsible for the allocation of resources to operating segments and assessing their performance.

Going concern

The consolidated entity’s financial statements have been prepared on the going concern basis of accounting, which assumes the continuity of normal business activities and the realisation of assets and settlement of liabilities in the ordinary course of business.

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Acusensus Limited Notes to the consolidated financial statements 31 December 2023

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Note 2. Revenue

Revenue from contracts with customers Rendering of services Sale of goods Revenue	Consolidated 31 Dec 2023 31 Dec 2022 $ $ 24,735,088 19,811,943 656 25,825	Consolidated 31 Dec 2023 31 Dec 2022 $ $ 24,735,088 19,811,943 656 25,825
	24,735,744	19,837,768

Note 3. Other income

Interest revenue Insurance proceeds Government grants Other income Other income	Consolidated 31 Dec 2023 31 Dec 2022 $ $ 426,123 1,925 285,216 207,691 - 36,600 144,587 -	Consolidated 31 Dec 2023 31 Dec 2022 $ $ 426,123 1,925 285,216 207,691 - 36,600 144,587 -
	855,926	246,216

Insurance proceeds is compensation associated with the impaired property, plant and equipment of $425,824 (31 December 2022: $220,298).

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Acusensus Limited Notes to the consolidated financial statements 31 December 2023

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Note 4. Expenses

Profit/(loss) before income tax includes the following specific expenses: Employee benefits Salaries and wages Share based payments expense Defined contribution superannuation expense Other Employee benefits Depreciation and amortisation Depreciation - property, plant and equipment Depreciation - right-of-use assets Amortisation Depreciation and amortisation IPO transaction costs IPO transaction costs IPO transaction costs	Consolidated 31 Dec 2023 31 Dec 2022 $ $ 3,429,608 2,762,772 681,043 198,168 687,588 513,912 497,079 396,694	Consolidated 31 Dec 2023 31 Dec 2022 $ $ 3,429,608 2,762,772 681,043 198,168 687,588 513,912 497,079 396,694
	5,295,318	3,871,546
	1,791,618 784,953 411,413	1,205,816 668,436 172,991
	2,987,984	2,047,243
	-	674,639
	-	674,639

IPO transaction costs represent those costs of raising capital which are not directly attributable to the new shares issued under the offer.

Finance costs Interest and finance charges paid/payable on borrowings Interest and finance charges paid/payable on lease liabilities Finance costs	625 36,950	5,646 34,951
	37,575	40,597

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Acusensus Limited Notes to the consolidated financial statements 31 December 2023

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Note 5. Cash and cash equivalents

Current assets Unrestricted Cash on hand Cash at bank Cash at bank for term deposits (less than 3 months maturity) Restricted Cash at bank for contracts Cash and cash equivalents	Consolidated 31 Dec 2023 30 Jun 2023 $ $ 490 490 3,596,612 5,322,296 4,137,327 6,063,616 7,734,429 11,386,402 1,414,966 1,412,707 1,414,966 1,412,707 9,149,395 12,799,109
	7,734,429
	1,414,966
	1,414,966
	9,149,395

Restricted cash balance represents cash held by the entity as required under its bank guarantee arrangements. The cash held is not available for the purposes of the Company’s operations.

Note 6. Trade and other receivables

Current assets Trade receivables Accrued revenue Other receivables Trade and other receivables	Consolidated 31 Dec 2023 30 Jun 2023 $ $ 938,533 3,623,599 3,925,612 3,395,780 5,538,070 1,573,493 10,402,215 8,592,832
	10,402,215

Note 7. Other current assets

Current assets Term deposits (greater than 3 months maturity) Other current assets	Consolidated 31 Dec 2023 30 Jun 2023 $ $ 12,000,000 12,000,000 12,000,000 12,000,000
	12,000,000

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Acusensus Limited Notes to the consolidated financial statements 31 December 2023

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Note 8. Property, plant and equipment

Non-current assets Motor vehicles - at cost Less: Accumulated depreciation Net carrying value Computer equipment - at cost Less: Accumulated depreciation Net carrying value Office equipment - at cost Less: Accumulated depreciation Net carrying value Camera equipment - at cost Less: Accumulated depreciation Net carrying value Property, plant and equipment	Consolidated 31 Dec 2023 30 Jun 2023 $ $ 1,324,513 1,255,473 (799,001) (605,139)	Consolidated 31 Dec 2023 30 Jun 2023 $ $ 1,324,513 1,255,473 (799,001) (605,139)
	525,512	650,334
	567,296 (310,964)	455,374 (251,428)
	256,332	203,946
	270,415 (135,987)	224,254 (98,391)
	134,428	125,863
	14,044,365 (5,615,541)	12,435,585 (4,226,062)
	8,428,824	8,209,523
	9,345,096	9,189,666

Reconciliations

Reconciliations of the written down values at the beginning and end of the current financial half-year are set out below:

Consolidated Balance at 30 June 2023 Additions Foreign exchange movements Impairment Depreciation expense Balance at 31 December 2023	Motor vehicles $ 650,334 69,039 772 - (194,633)	Computer equipment $ 203,946 111,922 178 - (59,714)	Office equipment $ 125,863 46,161 106 (37,702)	Camera equipment $ 8,209,523 2,133,203 11,491 - (425,824) (1,499,569)	Total $ 9,189,666 2,360,325 12,546 (425,824) (1,791,618)
	525,512	256,332	134,428	8,428,824	9,345,096

Note 9. Right-of-use assets

Non-current assets Building right-of-use assets – at cost Less: Accumulated depreciation Net carrying value Motor vehicle right-of-use assets – at cost Less: Accumulated depreciation Net carrying value Right-of-use assets	Consolidated 31 Dec 2023 30 Jun 2023 $ $ 1,732,105 1,599,353 (916,326) (695,313)	Consolidated 31 Dec 2023 30 Jun 2023 $ $ 1,732,105 1,599,353 (916,326) (695,313)
	815,779	904,040
	3,139,168 (2,400,124)	3,069,298 (1,923,267)
	739,044	1,146,031
	1,554,823	2,050,071

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Acusensus Limited Notes to the consolidated financial statements 31 December 2023

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Note 9. Right-of-use assets (continued)

Reconciliations

Reconciliations of the written down values at the beginning and end of the current financial half-year are set out below:

Consolidated Balance at 30 June 2023 Additions and modifications Foreign exchange movements Impairment Depreciation expense Balance at 31 December 2023	Building $ 904,040 139,671 (3,417) - (224,515)	Motor vehicle $ 1,146,031 172,989 - (19,538) (560,438) 739,044	Total $ 2,050,071 312,660 (3,417) (19,538) (784,953)
	815,779		1,554,823

Note 10. Intangibles

Non-current assets Capitalised development costs – at cost Less: Accumulated amortisation Net carrying value Website – at cost Less: Accumulated amortisation Net carrying value Intangibles	Consolidated 31 Dec 2023 30 Jun 2023 $ $ 3,181,421 2,218,415 (1,148,876) (742,879) 2,032,545 1,475,536 47,074 46,600 (9,320) (4,660) 37,754 41,940 2,070,299 1,517,476
	2,032,545
	47,074 (9,320)
	37,754
	2,070,299

Reconciliations

Reconciliations of the written down values at the beginning and end of the current financial half-year are set out below:

Consolidated Balance at 30 June 2023 Additions Foreign exchange movements Amortisation expense Balance at 31 December 2023	Capitalised development costs $ 1,475,536 963,006 756 (406,753)	Website $ 41,940 474 - (4,660) 37,754	Total $ 1,517,476 963,480 756 (411,413)
	2,032,545		2,070,299

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Acusensus Limited Notes to the consolidated financial statements 31 December 2023

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Note 11. Trade and other payables

Current liabilities Trade payables Accrued liabilities Other payables Trade and other payables Note 12. Issued capital 31 Dec 2023 Shares Ordinary shares - fully paid 126,399,975 Movements in ordinary share capital Details Date Balance 30 June 2023 5:1 share split 25 July 2023 Conversion of share options 28 November 2023 Balance 31 December 2023 Note 13. Reserves Foreign currency reserve Employee equity benefits reserve Reserves Note 14. Earnings/(loss) per share Loss after income tax attributable to the owners of Acusensus Limited	31 Dec 2023 Shares 126,399,975		Consolidated 31 Dec 2023 30 Jun 2023 $ $ 2,087,689 411,777 2,687,418 4,289,151 777,868 1,130,167 5,552,975 5,831,095 Consolidated 30 Jun 2023 31 Dec 2023 30 Jun 2023 Shares $ $ 25,229,995 37,570,540 37,455,540 Shares Issue price $ 25,229,995 37,455,540 100,919,980 - 250,000 $0.46 115,000 126,399,975 37,570,540 Consolidated 31 Dec 2023 30 Jun 2023 $ $ (8,404) 75,936 2,621,341 1,940,298 2,612,937 2,016,234 Consolidated 31 Dec 2023 31 Dec 2022 $ $ (241,430) (262,802)
			Shares 25,229,995 100,919,980 250,000
			126,399,975

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Acusensus Limited Notes to the consolidated financial statements 31 December 2023

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Note 14. Earnings/(loss) per share (continued)

Weighted average number of ordinary shares used in calculating basic loss per share Weighted average number of ordinary shares used in calculating diluted loss per share Basic loss per share Diluted loss per share	Number 126,194,812	Number 100,324,975
	126,194,812	100,324,975
	Cents 0.00 0.00	Cents 0.00 0.00

On 25 July 2023, a resolution was approved for the subdivision of capital with every one share being subdivided into five shares. All options on issue were subdivided in the same ratio as the subdivision of capital in accordance with ASX Listing Rule 7.22.2. In accordance with AASB 133 Earning per Share, the number of ordinary shares outstanding before the event is adjusted for the proportion change in the number of ordinary shares outstanding as if the event had occurred at the beginning of the earliest period presented.

Due to the consolidated entity’s loss position, options have been excluded from the above calculations as its inclusion would be anti-dilutive.

*Basic and diluted loss per share have been rounded to two decimal places.

Note 15. Reconciliation of loss after income tax to net cash from/(used in) operating activities

Loss after income tax expense for the half-year Adjustments for: Depreciation and amortisation Impairment Share-based payments Change in operating assets and liabilities: Increase in trade and other receivables Decrease/(increase) in contract assets Increase in inventories Decrease in net deferred tax liability Decrease/(increase) in other assets (Decrease)/increase in trade and other payables Decrease in contract liabilities Increase in provisions Increase in income tax payable Net cash from/(used in) operating activities	Consolidated 31 Dec 2023 31 Dec 2022 $ $ (241,430) (262,802) 2,987,984 2,047,243 425,360 220,298 681,043 198,168 (1,809,383) (3,543,176) 303,807 (177,760) (396,672) (47,864) (64,647) - 737 (33,293) (278,120) 588,226 (1,483,160) (126,277) 153,966 172,051 141,462 -	Consolidated 31 Dec 2023 31 Dec 2022 $ $ (241,430) (262,802) 2,987,984 2,047,243 425,360 220,298 681,043 198,168 (1,809,383) (3,543,176) 303,807 (177,760) (396,672) (47,864) (64,647) - 737 (33,293) (278,120) 588,226 (1,483,160) (126,277) 153,966 172,051 141,462 -
	451,536	(995,775)

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Acusensus Limited Notes to the consolidated financial statements 31 December 2023

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Note 16. Events after the reporting period

On 8 January 2024, the Company announced it entered into a contract with the South Australia Government for the provision of fixed mobile phone detection camera. The agreement is for a five-year term, with an option for an additional one year. The estimated total contract value over the initial five-year term of the agreement is $5 million (excluding GST).

No other matter or circumstance has arisen since 31 December 2023 that has significantly affected, or may significantly affect the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial years.

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Acusensus Limited Directors' declaration 31 December 2023

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In the Directors' opinion:

• the attached financial statements and notes comply with the Corporations Act 2001, Australian Accounting Standard AASB 134 Interim Financial Reporting, the Corporations Regulations 2001 and other mandatory professional reporting requirements;

• the attached financial statements and notes give a true and fair view of the consolidated entity's financial position as at 31 December 2023 and of its performance for the financial half-year ended on that date; and

• there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

Signed in accordance with a resolution of Directors made pursuant to section 303(5)(a) of the Corporations Act 2001.

On behalf of the Directors

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_________ Alexander Jannink Director

26 February 2024 Melbourne, Australia

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Tel: +61 3 9603 1700 Collins Square, Tower Four Fax: +61 3 9602 3870 Level 18, 727 Collins Street www.bdo.com.au Melbourne VIC 3008 GPO Box 5099 Melbourne VIC 3001 Australia

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INDEPENDENT AUDITOR’S REVIEW REPORT

To the members of Acusensus Limited

Report on the Half-Year Financial Report

Conclusion

We have reviewed the half-year financial report of Acusensus Limited (the Company) and its subsidiaries (the Group), which comprises the consolidated statement of financial position as at 31 December 2023, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the halfyear ended on that date, a summary of significant accounting policies and other explanatory information, and the directors’ declaration.

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the accompanying half-year financial report of the Group does not comply with the Corporations Act 2001 including:

• (i) Giving a true and fair view of the Group’s financial position as at 31 December 2023 and of its financial performance for the half-year ended on that date; and

• (ii) Complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.

Basis for conclusion

We conducted our review in accordance with ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity . Our responsibilities are further described in the Auditor’s Responsibilities for the Review of the Financial Report section of our report. We are independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to the audit of the annual financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

We confirm that the independence declaration required by the Corporations Act 2001 which has been given to the directors of the Company, would be the same terms if given to the directors as at the time of this auditor’s review report.

Responsibility of the directors for the financial report

The directors of the Company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.

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Auditor’s responsibility for the review of the financial report

Our responsibility is to express a conclusion on the half-year financial report based on our review. ASRE 2410 requires us to conclude whether we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including giving a true and fair view of the Group’s financial position as at 31 December 2023 and its financial performance for the half-year ended on that date and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 .

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

BDO Audit Pty Ltd

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Salim Biskri Director

Melbourne, 26 February 2024

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