CRYOSITE LIMITED — Interim / Quarterly Report 2024

Feb 21, 2024

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Half Year Report - Dec 2023

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Cryosite Limited Appendix 4D Half-year report

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1. Company details

Name of entity:	Cryosite Limited
ABN:	86 090 919 476
Reporting period:	For the half-year ended 31 December 2023
Previous period:	For the half-year ended 31 December 2022
Reporting Currency:	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	Previous period
	Cents	Cents
	6.20	4.37

The calculation of net tangible assets excludes right-of-use assets, intangible assets, and lease liabilities.

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Cryosite Limited Appendix 4D Half-year report

4. Dividends

Current period

Current perod
	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

Final unfranked dividend for the year ended 30 June 2022

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 Mark Kerr ? Non-Executive Chairman

Date: 22 February 2024

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Cryosite Limited ABN 86 090 919 476

Interim Report - 31 December 2023

Cryosite Limited
Contents
31 December 2023
Directors' report	2
Auditor's independence declaration	6
Consolidated statement of profit or loss and other comprehensive income	7
Consolidated statement of financial position	8
Consolidated statement of changes in equity	9
Consolidated statement of cash flows	10
Notes to the consolidated financial statements	11
Directors' declaration	22
Independent auditor's report to the members of Cryosite Limited	23

1

Cryosite 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 '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) CEO and Managing Director Andrew Kroger Non-Executive Director Mark Kerr (appointed on 8 December 2023) Non-Executive Chairman Steven Waller (resigned on 8 December 2023) Former Non-Executive Chairman Nicola Swift (resigned on 8 December 2023) Former Non-Executive Director Luis Antonio (resigned on 8 December 2023) Former Non-Executive Director

Dividends

Dividends paid during the financial half-year were as follows:

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	Consolidated	Consolidated
	31 Dec 2023	31 Dec 2022
	$'000	$'000
	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	1.73	1.39
Diluted earnings per share	1.73	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

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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

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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.

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Cryosite Limited Directors' report 31 December 2023

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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

Mark Kerr Non-Executive Cha�� P/41.K M;f;:c

22 February 2024

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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.

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MAZARS RISK & ASSURANCE PTY LIMITED

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Rosemary Megale Director Sydney, 22 February 2024

Mazars Risk & Assurance Pty Limited 6 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

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Note Revenue 4 Expenses Administration expenses 5 Cost of providing services Depreciation and amortisation expense 5 Marketing expenses Occupancy expenses Total expenses 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 7 Diluted earnings per share 7	Consolidated	Consolidated
	31 Dec 2023	31 Dec 2022
	$'000	$'000
	6,402 (2,283) (2,447) (391) (16) (331)	5,722 (2,114) (2,270) (345) (9) (292)
	(5,468)	(5,030)
	934 110 (83)	692 46 (35)
	961 (115)	703 (24)
	846 -	679 -
	846	679
	Cents 1.73 1.73	Cents 1.39 1.39

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

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Note Assets Current assets Cash and cash equivalents 8 Term deposit maturing after three months Trade and other receivables 9 Inventories - stock on hand Customer acquisition and fulfilment costs 10 Other assets Total current assets Non-current assets Property, plant and equipment 11 Right-of-use assets 12 Intangibles assets Deferred tax assets 6 Customer acquisition and fulfilment costs 10 Other assets Total non-current assets Total assets Liabilities Current liabilities Trade and other payables Contract liabilities Lease liabilities Provision for income tax 6 Employee benefits Other liabilities 13 Total current liabilities Non-current liabilities Trade and other payables Contract liabilities Lease liabilities Employee benefits Provisions Other liabilities 13 Total non-current liabilities Total liabilities Net assets Equity Issued capital 14 Accumulated losses Total equity	Consolidated 31 Dec 2023 30 Jun 2023 $'000 $'000 5,927 4,731 - 1,000 1,965 1,727 88 60 1,161 1,195 267 468 9,408 9,181 1,462 1,516 2,390 2,520 6 8 1,108 1,059 7,593 8,156 204 207 12,763 13,466 22,171 22,647 1,333 1,254 2,071 2,040 170 161 164 - 266 262 60 60 4,064 3,777 442 442 11,718 12,539 2,357 2,445 127 95 209 209 358 358 15,211 16,088 19,275 19,865 2,896 2,782 5,979 5,979 (3,083) (3,197) 2,896 2,782
	31 Dec 2023
	$'000
	5,927 - 1,965 88 1,161 267
	9,408
	1,462 2,390 6 1,108 7,593 204
	12,763
	22,171
	1,333 2,071 170 164 266 60
	4,064
	442 11,718 2,357 127 209 358
	15,211
	19,275
	2,896
	5,979 (3,083)
	2,896

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

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Cryosite Limited Consolidated statement of changes in equity For the half-year ended 31 December 2023
	Issued	Accumulated	Total equity
	capital	losses
Consolidated	$'000	$'000	$'000
Balance at 1 July 2022 Profit after income tax expense for the half-year Other comprehensive income for the half-year, net of tax Total comprehensive income for the half-year Transactions with owners in their capacity as owners: Dividends paid (note 15) Balance at 31 December 2022	5,979 - -	(4,118) 679 -	1,861 679 -
	- -	679 (488)	679 (488)
	5,979	(3,927)	2,052
	Issued	Accumulated	Total equity
	capital	losses
Consolidated	$'000	$'000	$'000
Balance at 1 July 2023 Profit after income tax expense for the half-year Other comprehensive income for the half-year, net of tax Total comprehensive income for the half-year Transactions with owners in their capacity as owners: Dividends paid (note 15) Balance at 31 December 2023	5,979 - -	(3,197) 846 -	2,782 846 -
	- -	846 (732)	846 (732)
	5,979	(3,083)	2,896

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

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Cryosite Limited Consolidated statement of cash flows For the half-year ended 31 December 2023
Note Cash flows from operating activities Receipts from customers (inclusive of GST) Payments to suppliers and employees (inclusive of GST) Net cash from operating activities Cash flows from investing activities Payments for property, plant and equipment 11 Investment of cash in short-term deposits Interest received Net cash from/(used in) investing activities Cash flows from financing activities Dividends paid 15 Repayment of lease liabilities Net cash used in financing activities 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 Cash and cash equivalents at the end of the financial half-year	Consolidated 31 Dec 2023 31 Dec 2022 $'000 $'000 5,665 4,552 (4,446) (4,228) 1,219 324 (196) (70) 1,000 - 55 33 859 (37) (732) (488) (150) (156) (882) (644) 1,196 (357) 4,731 5,341 - 1 5,927 4,985
	31 Dec 2023
	$'000
	5,665 (4,446)
	1,219
	(196) 1,000 55
	859
	(732) (150)
	(882)
	1,196 4,731 -
	5,927

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

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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

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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 Specialist temperature-controlled storage, sourcing, labelling, status biological services management, secondary packaging, schedule drug distribution, destruction, logistics 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 Revenue Sales to external customers Total revenue EBITDA Depreciation and amortisation Interest revenue Finance costs Profit/(loss) before income tax expense Income tax expense Profit after income tax expense Assets Segment assets Total assets Liabilities Segment liabilities Total liabilities	Clinical trials and biological services logistics	Cord blood and tissue storage	Unallocated	Total
	$'000	$'000	$'000	$'000
	5,276	1,126	-	6,402
	5,276	1,126	-	6,402
	2,361 (331) - (59)	287 (13) - (6)	(1,323) (47) 110 (18)	1,325 (391) 110 (83)
	1,971	268	(1,278)	961 (115)
	3,256	9,946	8,969
				846
				22,171
	1,383	13,893	3,999	22,171
				19,275
				19,275

12

Cryosite Limited Notes to the consolidated financial statements 31 December 2023

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Note 3. Operating segments (continued)

Consolidated - 31 Dec 2022 Revenue Sales to external customers Total revenue EBITDA Depreciation and amortisation Interest revenue Finance costs Profit/(loss) before income tax expense Income tax expense Profit after income tax expense Consolidated - 30 Jun 2023 Assets Segment assets Total assets Liabilities Segment liabilities Total liabilities	Clinical trials and biological services logistics	Cord blood and tissue storage	Unallocated	Total
	$'000	$'000	$'000	$'000
	4,561	1,161	-	5,722
	4,561	1,161	-	5,722
	1,876 (288) - (29)	303 (12) - (3)	(1,142) (45) 46 (3)	1,037 (345) 46 (35)
	1,559	288	(1,144)	703 (24)
	3,072	10,627	8,948
				679
				22,647
	1,237	14,767	3,861	22,647
				19,865
				19,865

13

Cryosite Limited Notes to the consolidated financial statements 31 December 2023

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Note 4. Revenue

Revenue from contracts with customers Revenue from clinical trials, logistics and biological services Revenue from cord blood and tissue storage (i) Revenue (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 * 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 Total cord blood historical deferred net income	Consolidated	Consolidated
	31 Dec 2023	31 Dec 2022
	$'000	$'000
	5,276 1,126	4,561 1,161
	6,402	5,722
	Consolidated
	31 Dec 2023	31 Dec 2022
	$'000	$'000
	208 918	192 969
	1,126	1,161
	Consolidated
	31 Dec 2023 $'000	31 Dec 2022 $'000
	918 (598) (80)	969 (626) (86)
	240	257

• Refer to note 3 'Operating segments'.

Disaggregation of revenue

The disaggregation of revenue from contracts with customers is as follows:

Geographical regions Australia* Timing of revenue recognition Goods transferred at a point in time Services transferred over time	Consolidated	Consolidated
	31 Dec 2023	31 Dec 2022
	$'000	$'000
	6,402	5,722
	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.

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Cryosite Limited Notes to the consolidated financial statements 31 December 2023

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Note 5. Expenses

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 Total depreciation and amortisation Finance costs Interest portion of monies owed to ACCC Interest and finance charges paid/payable on lease liabilities Finance costs expensed Superannuation expense Defined contribution superannuation expense Employee benefits expense excluding superannuation Employee benefits expense excluding superannuation Note 6. Income tax Income tax expense Current tax Deferred tax - origination and reversal of temporary differences Aggregate income tax expense 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	Consolidated	Consolidated
	31 Dec 2023	31 Dec 2022
	$'000	$'000
	259 130 2	229 114 2
	391	345
	12 71	14 21
	83	35
	151	142
	1,309	1,237
	Consolidated
	31 Dec 2023	31 Dec 2022
	$'000	$'000
	164 (49)	190 (166)
	115	24
	961	703
	240 (125)	176 (152)
	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.

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Cryosite Limited Notes to the consolidated financial statements 31 December 2023

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Note 7. Earnings per share

Note 7. Earnings per share
Profit after income tax attributable to the owners of Cryosite Limited Weighted average number of ordinary shares used in calculating basic earnings per share Weighted average number of ordinary shares used in calculating diluted earnings per share Basic earnings per share Diluted earnings per share	Consolidated
	31 Dec 2023	31 Dec 2022
	$'000	$'000
	846	679
	Number 48,809,563	Number 48,809,563
	48,809,563	48,809,563
	Cents 1.73 1.73	Cents 1.39 1.39

There have been no other transactions involving ordinary shares or potential ordinary shares since the reporting date and before completion of these financial statements.

16

Cryosite Limited Notes to the consolidated financial statements 31 December 2023

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Note 8. Cash and cash equivalents

Note 8. Cash and cash equivalents
Current assets Cash at bank and on hand Short-term deposits	Consolidated
	31 Dec 2023 $'000 927 5,000	30 Jun 2023 $'000 731 4,000
	5,927	4,731

Cash at bank and on hand earns interest at floating rates based on daily bank deposit rates. Short-term deposit is made for varying periods of between one day and six months depending on the immediate cash requirements of the Group and earn interest at the respective short-term deposit rates.

Note 9. Trade and other receivables

Current assets Trade receivables Less: Allowance for expected credit losses Other receivables	Consolidated 31 Dec 2023 30 Jun 2023 $'000 $'000 1,850 1,679 (86) (68)	Consolidated 31 Dec 2023 30 Jun 2023 $'000 $'000 1,850 1,679 (86) (68)
	1,764	1,611
	201	116
	1,965	1,727

Note 10. Customer acquisition and fulfilment costs

Note 10. Customer acquisition and fulfilment costs
Current assets Deferred costs - cord blood Non-current assets Deferred costs - cord blood Reconciliation of historical deferred cost cord blood Opening balance Recognised in the current year Closing balance	Consolidated
	31 Dec 2023 $'000 1,161	30 Jun 2023 $'000 1,195
	7,593	8,156
	8,754	9,351
	9,351 (597)	10,604 (1,253)
	8,754	9,351

Deferred costs represent upfront costs, such as laboratory fees, attributable for the collection and processing of cord blood and tissue samples.

17

Cryosite Limited Notes to the consolidated financial statements 31 December 2023

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Note 11. Property, plant and equipment

Non-current assets Leasehold improvements - at cost Less: Accumulated depreciation Fixtures and fittings - at cost Less: Accumulated depreciation Information technology - at cost Less: Accumulated depreciation Office furniture and equipment - at cost Less: Accumulated depreciation Warehouse equipment - at cost Less: Accumulated depreciation Tangible assets under construction - at cost	Consolidated	Consolidated
	31 Dec 2023 $'000 149 (83)	30 Jun 2023 $'000 140 (70)
	66	70
	156 (119)	156 (115)
	37	41
	256 (185)	255 (159)
	71	96
	95 (54)	95 (48)
	41	47
	4,206 (3,058)	4,110 (2,848)
	1,148	1,262
	99	-
	1,462	1,516

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 1 July 2023 Additions Depreciation expense Balance at 31 December 2023	Leasehold improvements $'000 70 9 (13)	Fixtures and fittings $'000 41 - (4)	Information technology $'000 96 1 (26)	Office furniture and equipment $'000 47 - (6)	Warehouse equipment $'000 1,262 96 (210)	Tangible assets under construction $'000 - 99 -	Total $'000 1,516 205 (259)
	66	37	71	41	1,148	99	1,462

18

Cryosite Limited Notes to the consolidated financial statements 31 December 2023

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Note 12. Right-of-use assets

Note 12. Right-of-use assets
Non-current assets Land and buildings - right-of-use Less: Accumulated depreciation	Consolidated 31 Dec 2023 30 Jun 2023 $'000 $'000 3,430 3,430 (1,040) (910) 2,390 2,520
	31 Dec 2023 $'000 3,430 (1,040)
	2,390
The Group leases land and buildings for its offices and warehouses under agreement 5 years, with the option
to extend it by 5 years.
Reconciliations Reconciliations of the written down values at the beginning and end of the current financial half-year are set out below: Land and buildings Consolidated $'000 Balance at 1 July 2023 2,520 Depreciation expense (130) Balance at 31 December 2023 2,390 Note 13. Other liabilities Consolidated 31 Dec 2023 30 Jun 2023 $'000 $'000 Current liabilities Other liabilities 60 60 Non-current liabilities Other liabilities 358 358 418 418

As at 31 December 2023, Cryosite owes $418,000 to the Australian Competition and Consumer Commission ('ACCC') under deferred settlement arrangement commencing in 2019. An amount of $85,000 is payable per year, with the final payment due in 2029.

19

Cryosite Limited Notes to the consolidated financial statements 31 December 2023

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Note 14. Issued capital

Note 14. Issued capital
Ordinary shares - fully paid		Consolidated
	31 Dec 2023 Shares 48,809,563	30 Jun 2023 Shares 48,809,563	31 Dec 2023 $'000 5,979	30 Jun 2023 $'000 5,979

Ordinary shares

Ordinary shares entitle the holder to participate in any dividends declared and any proceeds attributable to shareholders should the Company be wound up, in proportions that consider both the number of shares held and the extent to which those shares are paid up. The fully paid ordinary shares have no par value and the Company does not have a limited amount of authorised capital.

On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one vote.

Share buy-back

There is no current on-market share buy-back.

Note 15. Dividends

Dividends

Dividends paid during the financial half-year were as follows:

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	Consolidated	Consolidated
	31 Dec 2023 $'000 732	31 Dec 2022 $'000 488

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 6 October 2023, for the year ending 30 June 2023.

Note 16. Contingent liabilities

Bank guarantees of $198,000 (30 June 2023: $198,000) exist at year-end in respect of the Group's obligations under the premises lease arrangements.

Note 17. Commitments

Capital commitments Committed at the reporting date but not recognised as liabilities, payable: Property, plant and equipment	Consolidated	Consolidated
	31 Dec 2023 $'000 103	30 Jun 2023 $'000 200

20

Cryosite Limited Notes to the consolidated financial statements 31 December 2023

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Note 18. Events after the reporting period

On 15 February 2024, the Company approved a return of capital of 5 cents per share by way of an equal reduction in accordance with sections 256B and 256C of the Corporations Act 2001 (Cth) .

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

21

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Cryosite Limited Directors' declaration 31 December 2023

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 Group'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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22 February 2024

22

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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

Review Report on the Half-year Financial Report

Conclusion

We have reviewed the accompanying half-year financial report of Cryosite Limited and its controlled entity (the “Group”), which comprises the consolidated statement of financial position as at 31 December 2023 and consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the half-year ended on that date, significant accounting policies, explanatory notes 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 half-year financial report of Cryosite Limited and its controlled entity is not in accordance 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 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 (ASRE 2410) . Our responsibilities are further described in the Auditor’s responsibilities for the review of the half-year financial report section of our report.

We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the annual financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

Directors’ responsibility for the half-year 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 presentation 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.

Auditor’s Responsibility

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 of its performance for the half-year ended on that date, and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 .

Mazars Risk & Assurance Pty Limited 23 ABN: 39 151 805 275 Liability limited by a scheme approved under Professional Standards Legislation

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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.

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MAZARS RISK & ASSURANCE PTY LIMITED

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Rosemary Megale Director Sydney, 22 February 2024

24

Principal Activities

1. Clinical Trials Logistics Services

2. Biological Storage

3. Cell & Gene Therapies Depot Services

Services

• GMP Temperature-Controlled Storage

• Investigational Medicinal Product (IMP) Status Management

• Date Extension Labelling for IMP unregistered goods

• GMP Secondary Packaging

• Scheduled Drug Distribution (Schedule 8 drugs)

• Destruction Services including certificates

• Reverse Logistics/Returns Management from clinical sites and hospitals

• Import and Export Services

• Validated Transport Solutions

• Long-Term Storage Options

• Legacy Cord Blood and Tissue Storage

www.cryosite.com

TGA Licence Number MI-18072008-LI-002488-11