ROCKETDNA LTD. — Interim / Quarterly Report 2024

Aug 27, 2024

RocketDNA Ltd. Appendix 4D Half-year report

1. Company details

Name of entity:	RocketDNA Ltd.
ABN:	17 618 678 701
Reporting period:	For the half-year ended 30 June 2024
Previous period:	For the half-year ended 30 June 2023

2. Results for announcement to the market

			$
Revenues from ordinary activities	up	16.9% to	3,515,322
Loss from ordinary activities after tax attributable to the owners ofRocketDNA Ltd.	up	13.1% to	(872,643)
Loss for the half-year attributable to the owners of RocketDNA Ltd.	up	13.1% to	(872,643)

Dividends

There were no dividends paid, recommended or declared during the current financial period.

Comments

Further explanation of the results is contained in the attached announcement and interim financial report.

3. Net tangible assets

	ReportingperiodCents	PreviousperiodCents
Net tangible assets per ordinary security	0.40	0.67

4. Control gained over entities

Not applicable.

5. Loss of control over entities

Not applicable.

6. Dividends

Current period There were no dividends paid, recommended or declared during the current financial period.

Previous period There were no dividends paid, recommended or declared during the previous financial period.

7. Dividend reinvestment plans

Not applicable.

RocketDNA Ltd. Appendix 4D Half-year report

8. Details of associates and joint venture entities

Not applicable.

9. Foreign entities

Details of origin of accounting standards used in compiling the report:

Foreign entity accounting information is prepared and complies with International Financial Reporting Standards (IFRS).

10. Audit qualification or review

This report is based on accounts that have been subject to an audit review. The Auditor has issued an Independent Auditor's Review Report with an unqualified opinion. The attached half-year financial report has been prepared on a going concern basis. There are no items of dispute with the auditor and the audit review is not subject to a qualification.

11. Signed

Christopher Clark Chief Executive Officer

Signed ___________________________ Date: 28 August 2024

RocketDNA Ltd.

ABN 17 618 678 701

Interim Report - 30 June 2024

RocketDNA Ltd. Corporate directory 30 June 2024

Directors	Mr David MortonMr Christopher ClarkMr Paul Williamson	Chairman, Non-Executive DirectorExecutive Director, Chief Executive OfficerExecutive Director, Chief Financial Officer
Company secretary	Mr Stephen Buckley
Registered office	75 Thomas StreetSubiaco WA 6008Email: contact@rocketdna.com.au
Principal place of business	75 Thomas StreetSubiaco WA 6008
Share register	Automic Registry ServicesLevel 5, 191 St Georges TerracePerth WA 6000Email: hello@automic.com.auWeb: www.automic.com.au
Auditor	Hall Chadwick Audit (WA) Pty Ltd283 Rokeby RoadSubiaco WA 6008
Legal Advisers (Australia)	Eaton Hall20/210 Queen Victoria StreetNorth Fremantle WA 6159
Legal Advisers (South Africa)	Rodl & Partner1 Eastgate LaneBedfordviewSouth Africa 2007
Stock exchange listing	DLT)ASX LimitedLevel 40, Central Park152-158 St Georges TerracePerth WA 6005	RocketDNA Ltd. shares are listed on the Australian Securities Exchange (ASX code:
Website	Web: www.rocketdna.com/
Corporate Governance Statement	www.rocketdna.com/corporate-governance	RocketDNA Limited's Corporate Governance Statement can be viewed at:

1

RocketDNA Ltd. Directors' report 30 June 2024

The Directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'Group') consisting of RocketDNA Ltd. (referred to hereafter as the 'Company' or 'parent entity') and the entities it controlled at the end of, or during, the half-year ended 30 June 2024.

DirectorsName	Title	Appointed
Mr David Morton	Chairman, Non-Executive Director	29 March 2023
Mr Christopher Clark	Executive Director, Chief Executive Officer 3 December 2020
Mr Paul Williamson	Executive Director, Chief Financial Officer	23 June 2022

David Morton was appointed Chairman on 10 April, 2024 and Christopher Clark resigned as Chairman on 10 April, 2024.

Principal activities

RocketDNA provides drone based geo-data and automation solutions. Leveraging AI and autonomous drone technology, the Group helps decision makers obtain practical insights in fast-changing environments. Focused on the mining, agriculture and critical asset industries, RocketDNA is committed on capturing growth in these sectors through its differentiated digital and automation solutions.

RocketDNA provides services such as contract aerial surveying and mapping; surveillance and reconnaissance; mining pit conformance, optimisation and de-risking; blast monitoring and fragment analysis; and video, photographic and thermal inspections. In 2023, the Group received civil aviation authorities' approvals for autonomous drone flights operated from its remote operations centres in Johannesburg, Perth and Adelaide and now offers autonomous-drone-based versions of the above services across Australia and South Africa. The Group also provides drone related training and consulting services as well as providing drone hardware for customers who operate their own drone programmes.

Revenues are generated through multi-year recurring revenue contracts or short projects which have the potential to be converted into recurring revenue streams. Key customer contracts are with tier 1 and tier 2 miners South32, Newmont Mining, Red 5 and Seriti Coal.

RKT's operations are focused on Australia and Africa with regional offices in Perth, Johannesburg & Accra.

Review of operations

Key financial outcomes for the 6 month period to 30 June 2024 were:

• Revenue was $3,475,982 up 8% on the second half of 2023 and up 15% on the first half of 2023.
• Loss after income tax was $883,980 down by $243,028 or 21% on the second half of 2023.
• Loss before interest, tax, depreciation, amortisation and impairment charges (EBITDA) was $255,158 down by $94,018 or 29% on the second half of 2023 and down $76,652 (25%) on the first half of 2023. This measure, in particular, is encouraging, given the Board's focus on reaching operating cash flow break-even.
• Our Australian business made great progress in recovering from the head-winds experienced in late 2023, in particular as it begins to benefit from the new Xbot product. Results were broadly in line with the first half of 2023. EBITDA was a loss of $225,158 versus a loss of $654,700 in the second half of 2023.
• Total operating expenses were $2,322,494 down 3% against the second half of 2023, but up 15% on first half of 2023, driven mainly by an inflationary backdrop in Africa offset by tight cost control across the group.

Cash balance was $1,439,243 down $877,834 (38%) from 31 December 2023 $2,317,077

The majority of the capital raising in December 2023 (and final receipts in January 2024) of $1,100,000 has been expended on capital equipment including completed xBots, investment into our data delivery software platform and xBot component inventory.

Net cash used in operating activities was broadly in line with the first half of 2023 in total at $296,952. This included a one-off payment of prior years' income taxes and associated interest in Ghana of $158,956, and hence an improved underlying figure. Compared to the second half of 2023 ($671,320), net cash used in operating activities improved significantly.

Unless otherwise stated, all figures in this report are in the Company's presentation currency, the Australian Dollar ("$")

RocketDNA Ltd. Directors' report 30 June 2024

Key operational developments during the six month period have been primarily focused around the xBot® Solution Roll Out:

• As noted above RocketDNA raised circa $1m in December 2023 to accelerate manufacturing of xBot® units and to increase marketing capabilities around deployment.
• At the end of June, eleven xBot® units were manufactured across our Australian and African operations with seven units deployed to paying and non-paying (trial) customers. The remaining four units are currently awaiting commissioning or regulatory (site specific or aircraft) approvals from the local regulator.
• After extensive validation testing and feedback from our first xBot® batch, the Company is now confident in both its market demand and drone manufacturing capacity for calendar year 2024 and future sales developments will dictate the introduction of additional manufacturing resources and capabilities.
• Since launching the xBot® in 2023, RKT has not only received multiple enquiries from our traditional mining customer base, but we are having discussions with Government Authorities , Ports, Insurance Asset managers , Agribusinesses and Security Companies.
• The Group has submitted proposals for a number of public tenders that will require multi-drone and multi-year contracts, which is a positive market development for autonomous drone-in-a-box solutions. This new business development strategy, which has the Company branching out into complementary industries, has had some initial success, with RKT receiving an order (post 30 June 2024) to conduct a paid security and surveillance trail for a government entity requiring 24/7 monitoring of their critical assets.

Key governance developments included:

• Appointment of Mr David Morton to the role of Chairman on 10 April 2024, with Christopher Clark transitioning from the role of Chairman to focus on his role as Managing Director and CEO.
• Cancellation of historic performance shares on 27 June 2024.

From a risk management perspective, the Board continues to monitor and manage key business risks, within a risk management framework which can be summarised as:

• Zero target appetite risks, such as safety, fraud, and data and equipment protection.
• Strategic risks, such as staff retention and engagement, market and product developments, regulation and financial.
• External risks, such as overseas political risks, inflation, exchange rate and customer and supplier credit risk.

Significant changes in the state of affairs

There were no significant changes in the state of affairs of the Group during the half year ended 30 June 2024.

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

___________________________

Christopher Clark Chief Executive Officer

28 August 2024

To the Board of Directors

AUDITOR'S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001

As lead audit director for the review of the half-year financial report of RocketDNA Ltd and its controlled entities for the half-year ended 30 June 2024, I declare that to the best of my knowledge and belief, there have been no contraventions of:

• the auditor independence requirements of the Corporations Act 2001 in relation to the review; and
• any applicable code of professional conduct in relation to the review.

Yours Faithfully,

HALL CHADWICK AUDIT (WA) PTY LTD NIKKI SHEN CA ABN 42 163 529 682 Director

Dated this 28th day of August 2024 Perth, Western Australia

RocketDNA Ltd. Contents 30 June 2024

Consolidated statement of profit or loss and other comprehensive income	6
Consolidated statement of financial position	7
Consolidated statement of changes in equity	8
Consolidated statement of cash flows	9
Notes to the consolidated financial statements	10
Directors' declaration	16
Independent auditor's review report to the members of RocketDNA Ltd.	17

General information

RocketDNA Ltd. is a listed public company limited by shares, incorporated and domiciled in Australia. 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 28 August 2024.

RocketDNA Ltd. Consolidated statement of profit or loss and other comprehensive income For the half-year ended 30 June 2024

		Consolidated
	Note	2024$	2023$
RevenueCost of sales	3	3,475,982(1,704,921)	2,947,481(1,487,026)
Gross profit		1,771,061	1,460,455
Other incomeGains from disposals of assets		45,828(6,488)	16,30742,792
ExpensesOperating expenseImpairmentDepreciation expenseAmortisation of intangible assets	4	(2,322,494)27,766(201,831)(21,259)	(2,065,670)(22,903)(148,046)-
Operating loss		(707,417)	(717,065)
Finance incomeFinance expense	5	16,000(140,490)	18,506(16,184)
Loss before income tax expense		(831,907)	(714,743)
Income tax expense		(52,073)	(25,441)
Loss after income tax expense for the half-year		(883,980)	(740,184)
Other comprehensive loss
Items that may be reclassified subsequently to profit or lossForeign currency translation		(23,456)	(173,467)
Other comprehensive loss for the half-year, net of tax		(23,456)	(173,467)
Total comprehensive loss for the half-year		(907,436)	(913,651)
Loss for the half-year is attributable to:Non-controlling interestOwners of RocketDNA Ltd.		(11,337)(872,643)	31,374(771,558)
		(883,980)	(740,184)
Total comprehensive loss for the half-year is attributable to:Non-controlling interestOwners of RocketDNA Ltd.		(31,788)(875,648)	45,837(959,488)
		(907,436)	(913,651)
		Cents	Cents
Basic loss per shareDiluted loss per share	1010	(0.13)(0.13)	(0.15)(0.15)

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

RocketDNA Ltd. Consolidated statement of financial position As at 30 June 2024

		Consolidated
	Note	2024$	2023$
Assets
Current assets
Cash and cash equivalents		1,439,243	2,317,078
Trade and other receivables		1,421,713	1,494,142
Inventories		296,332	60,832
Deposits		48,939	59,207
Total current assets		3,206,227	3,931,259
Non-current assets
Property, plant and equipment		1,297,194	1,264,914
Right-of-use assets		359,313	421,641
Intangibles		271,841	216,802
Deferred tax		11,342	18,620
Goodwill	6	969,602	955,223
Total non-current assets		2,909,292	2,877,200
Total assets		6,115,519	6,808,459
Liabilities
Current liabilities
Trade and other payables		1,052,562	800,934
Contract liabilities		188,950	151,986
Borrowings		41,152	107,922
Lease liabilities		180,435	186,663
Income tax		40,512	53,439
Total current liabilities		1,503,611	1,300,944
Non-current liabilities
Borrowings		200,000	200,000
Lease liabilities		575,922	680,024
Total non-current liabilities		775,922	880,024
Total liabilities		2,279,533	2,180,968
Net assets		3,835,986	4,627,491
EquityIssued capital	7	14,402,113	14,367,691
Reserves	8	(1,324,636)	(1,411,229)
Accumulated losses		(8,913,143)	(8,032,411)
Equity attributable to the owners of RocketDNA Ltd.		4,164,334	4,924,051
Non-controlling interest		(328,348)	(296,560)
Total equity		3,835,986	4,627,491

RocketDNA Ltd. Consolidated statement of changes in equity For the half-year ended 30 June 2024

Consolidated	Issuedcapital$	Foreigncurrencytranslationreserve$	Reserves$	Sharebasedpaymentreserve$	Accumulatedlosses$	Noncontrollinginterest$	Totalequity$
Balance at 1 January 2023	13,207,118	(253,029)	(968,570)	107,879	(6,504,734)	64,866	5,653,530
(Loss)/profit after income taxexpense for the half-yearOther comprehensive(loss)/income for the half-year,	-	-	-	-	(771,558)	31,374	(740,184)
net of tax	-	(141,620)	-	-	(46,310)	14,463	(173,467)
Total comprehensive(loss)/income for the half-year	-	(141,620)	-	-	(817,868)	45,837	(913,651)
Change in percentage of noncontrolling interest	-	-	-	-	41,608	(41,608)	-
Share based payments	-	-	-	(16,206)	-	-	(16,206)
Exercise of options	17,247	-	-	-	-	-	17,247
Share issue costsShares issued to employees	(3,210)	-	-	-	-	-	(3,210)
(non-KMP)	9,000	-	-	(9,000)	-	-	-
Shares issued to KMP underloan funded share plan	205,500	-	-	(205,500)	-	-	-
Balance at 30 June 2023	13,435,655	(394,649)	(968,570)	(122,827)	(7,280,994)	69,095	4,737,710
		Foreign		Share

Consolidated	Issuedcapital$	currencytranslationreserve$	Reserves$	basedpaymentreserve$	Accumulatedlosses$	Noncontrollinginterest$	Totalequity$
Balance at 1 January 2024	14,367,691	(417,029)	(968,570)	(25,630)	(8,032,411)	(296,560)	4,627,491
Loss after income taxexpense for the half-yearOther comprehensive(loss)/income for the half	-	-	-	-	(872,643)	(11,337)	(883,980)
year, net of tax	-	5,083	-	-	(8,088)	(20,451)	(23,456)
Total comprehensive(loss)/income for the half
year	-	5,083	-	-	(880,731)	(31,788)	(907,436)
Issue of sharesShare issue costs	35,000(578)	--	--	--	--	--	35,000(578)
Share-based payments	-	-	-	81,510	-	-	81,510
Balance at 30 June 2024	14,402,113	(411,946)	(968,570)	55,880	(8,913,142)	(328,348)	3,835,987

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

RocketDNA Ltd. Consolidated statement of cash flows For the half-year ended 30 June 2024

		Consolidated
	Note	2024$	2023$
Cash flows from operating activities
Receipts from customers (inclusive of GST)		3,846,328	3,383,219
Payments to suppliers (inclusive of GST)		(4,007,368)	(3,722,264)
		(161,040)	(339,045)
Interest received		15,987	19,465
Other revenue		7,057	19,145
Income taxes refunded		-	1,104
Prior years' income tax settlement, Ghana		(58,041)	-
Interest paid on prior years' income tax settlement, Ghana		(100,915)	-
Net cash used in operating activities		(296,952)	(299,331)
Cash flows from investing activities
Payments for property, plant and equipment		(366,018)	(197,105)
Payments for intangibles		(81,802)	-
Other		4,115	(10,153)
Proceeds from disposal of business		-	788,164
Proceeds from disposal of property, plant and equipment		6,912	48,350
Net cash from/(used in) investing activities		(436,793)	629,256
Cash flows from financing activities
Proceeds from issue of shares	7	35,000	-
Proceeds from exercise of options		-	17,247
Transaction costs		-	(1,260)
Proceeds from borrowings		139	-
Share issue transaction costs		(11,599)	-
Repayment of borrowings		(157,434)	(98,732)
Net cash used in financing activities		(133,894)	(82,745)
Net increase/(decrease) in cash and cash equivalents		(867,639)	247,180
Cash and cash equivalents at the beginning of the financial half-year		2,317,077	2,253,877
Effects of exchange rate changes on cash and cash equivalents		(10,195)	(35,603)
Cash and cash equivalents at the end of the financial half-year		1,439,243	2,465,454

Note 1. Material accounting policy information

Going concern

During the period, the Group generated a loss after tax from continuing operations of $883,980 (2023: $740,184), is reporting a net working capital of $1,702,616 (2023 : $2,753,945), has incurred net cash outflows from operations of $296,952 (2023  outflow of $299,331). As at 30 June 2024, the Group had $1,439,243 in cash (2023 : $2,317,078) and consolidated net assets of $3,835,986 (2023 : $4,737,710).

The Group has prepared the financial statements for the financial period ended 30 June 2024 on a going concern basis, which assumes continuity of current business activities and the realisation of assets and settlement of liabilities in the ordinary course of business.

Note 2. Operating segments

Identification of reportable operating segments

The Group is organised into 3 continuing operating segments. 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. The segments are aligned with the geographical locations of the Group's main business, namely Australia and Africa.

Operating segment information

	Australia	Africa	Corporate
Consolidated - 2024	$	$	$	Total$
Revenue
Revenue from external customers	826,485	2,649,497	-	3,475,982
Other income	33,201	12,627	-	45,828
Gain on sale of assets	(12,734)	6,246	-	(6,488)
Total revenue	846,952	2,668,370	-	3,515,322
EBITDA	(200,348)	620,284	(645,094)	(225,158)
Depreciation and amortisation	(156,550)	(323,459)	(30,015)	(510,024)
Impairment	(35,138)	62,904	-	27,766
Interest revenue	-	10,530	5,470	16,000
Finance income and expense	(19,094)	(119,094)	(2,304)	(140,492)
(Loss)/profit before income tax expense	(411,130)	251,165	(671,943)	(831,908)
Income tax expense	-	(52,073)	-	(52,073)
Loss after income tax expense				(883,981)
	Australia	Africa	Corporate	Total
Segment assets	2,100,534	3,250,391	764,594	6,115,519

Segment liabilities 1,097,131 985,024 197,378 2,279,533

RocketDNA Ltd.

Notes to the consolidated financial statements 30 June 2024

Note 2. Operating segments (continued)

	Australia	Africa	Corporate
Consolidated - 2023	$	$	$	Total$
Revenue
Revenue from external customers	940,864	2,006,595	-	2,947,459
Other income	-	16,306	-	16,306
Gain on sale of assets	-	42,791	-	42,791
Total revenue	940,864	2,065,692	-	3,006,556
EBITDA	(240,991)	522,316	(583,135)	(301,810)
Depreciation and amortisation	(105,652)	(256,003)	(30,719)	(392,374)
Impairment	-	(22,903)	-	(22,903)
Interest revenue	-	7,232	11,274	18,506
Finance income and expense	(6,846)	(5,489)	(3,827)	(16,162)
(Loss)/profit before income tax expense	(353,489)	245,153	(606,407)	(714,743)
Income tax expenseLoss after income tax expense	-	(25,441)	-	(25,441)(740,184)
	Australia	Africa	Corporate	Total
Segment assets	1,727,281	2,441,560	1,896,298	6,065,139
Segment liabilities	757,843	288,624	280,962	1,327,429
Note 3. Revenue
			Consolidated
			2024$	2023$
Timing of revenue recognition
At a point in timeOver time			1,281,3662,194,616	1,245,5791,701,902
			3,475,982	2,947,481

Note 4. Impairment

The loss allowance for trade receivables as at 30 June 2024 reconciled to the opening loss allowance as follows:

	Consolidated
	2024$	2023$
Expected credit loss on trade receivables recognised through P&L	(27,766)	22,903

Note 5. Finance expense

		Consolidated
	2024$	2023$
Interest on motor vehicle and equipment leases	26,034	6,982
Interest on liabilities relating to right-of-use assets	14,902	2,665
Realised and unrealised foreign currency (gains)/losses	(1,361)	6,537
Interest on prior years' income tax settlement, Ghana	100,915	-
	140,490	16,184
Note 6. Non-current assets - Goodwill
		Consolidated
	2024$	2023$
Goodwill	969,602	955,223

Goodwill relates to the acquisition of Africa, and RocketDNA (WA) Pty Ltd (formerly Rocketmine WA Pty Ltd or Arvista Pty Ltd).

The recoverable amount of all cash-generating units is based on the higher of its value-in-use or fair value less costs to sell which require use of assumptions. For the purpose of impairment testing, goodwill is allocated to two (2) cash-generating units (CGU), being Africa and RocketDNA (WA) Pty Ltd. In assessing goodwill impairment for the period ended 30 June 2024, both CGUs used a discounted cash flow model in accordance with the value-in-use (VIU) method, which reflect the present value of the future cash flows to be derived from each CGUs.

Note 7. Equity - issued capital

		Consolidated
	2024Shares	2023Shares	2024$	2023$
Ordinary shares - fully paid	656,114,841	652,225,953	14,402,113	14,367,691
Movements in ordinary share capital
Details	Date	Shares	Issue price	$
BalanceIssuance of shares to Directors re: December 2023	1 January 2024	652,225,953		14,367,691
placementShare issue costs	30 January 202430 January 2024	3,888,888	$0.0090	35,000(578)
Balance	30 June 2024	656,114,841		14,402,113

Ordinary shares

Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the Company in proportion to the number of and amounts paid on the shares held. 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 8. Equity - reserves

		Consolidated
	2024$	2023$
Predecessor accounting reservesForeign currency translation reserveShare-based payments reserve	(968,570)(411,946)55,880	(968,570)(417,029)(25,630)
	(1,324,636)	(1,411,229)

Foreign currency translation reserve

The reserve is used to recognise exchange differences arising from the translation of the financial statements of foreign operations to Australian dollars. It is also used to recognise gains and losses on hedges of the net investments in foreign operations.

Share-based payments reserve

The reserve is used to recognise the value of equity benefits provided to employees and Directors as part of their remuneration, and other parties as part of their compensation for services.

Predecessor accounting reserve

The predecessor accounting reserve comprises the excess of purchase price over the fair value of net assets when the common controlled entity, RocketDNA Training and Consulting (Pty) Ltd was acquired by Delta Drone SA France.

Note 9. Events after the reporting period

No matter or circumstance has arisen since 30 June 2024 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.

Note 10. Earnings per share

	Consolidated
	2024$	2023$
Loss after income taxNon-controlling interest	(883,980)11,337	(740,184)(31,374)
Loss after income tax attributable to the owners of RocketDNA Ltd.	(872,643)	(771,558)
	Number	Number
Weighted average number of ordinary shares used in calculating basic earnings per share	655,562,321	514,134,235
Weighted average number of ordinary shares used in calculating diluted earnings per share	655,562,321	514,134,235
	Cents	Cents
Basic loss per shareDiluted loss per share	(0.13)(0.13)	(0.15)(0.15)

Note 11. Share-based payments

During the period, there were no shares or options granted to staff or directors and there were no changes in the estimates for the number of performance rights expected to vest for rights issued in previous years.

The Performance rights granted on 24 June 2021 did not meet the required milestones by 24 June 2024 as estimated at 31 December 2023, hence these rights will lapse with no change to the share-based payment estimate.

Note 11. Share-based payments (continued)

Details of the share-based payment recognition for existing instruments are set out below:

	Recipient	Instrument	Number	Conditions	Grant Date	Recognition	Fair Value
(i)	ChristopherClark	PerformanceRights	6,000,000	2023 newmilestones	25 May 2023	Pro-rata to 31Dec 2024 and31 Dec 2025	1.1c per right
(ii)	Paul Williamson	PerformanceRights	3,000,000	2023 NewMilestones	25 May 2023	Pro-rata to 31Dec 2024 and31 Dec 2025	1.1c per right
(iii)	Paul Williamson	PerformanceRights	4,000,000	2022 NewMilestones	25 May 2023	Pro-rata to 31Dec 2024 and31 Dec 2025	1.1c per right
(iv)	ChristopherClark	Loan FundedShares	10,000,000	2 year escrow	19 June 2023	Equity optionpro-rata to 18June 2028	0.665c peroption
(v)	Paul Williamson	Loan FundedShares	5,000,000	2 year escrow	19 June 2023	Equity optionpro-rata to 18June 2028	0.665c peroption
(vi)	Africanemployees	Share options	6,500,000	futureemployment	23 May 2023	Pro-rata to 23May 2024, 23May 25 and 23May 2026	0.591c0.632c0.654c
(vii)	ChristopherClark	PerformanceRights	8,000,000	2022 newmilestone	3 June 2022	Pro-ratato31Dec 2024 and 31Dec 2025	1.4c per right

(viii) Of the 2,000,000 share options (fair value 0.69c per option) granted to Christopher Clark on 3 June 2022, 666,667 options vested during the period. Vesting of the Share options occurs based on employment conditions between 1 July 2022 and 1 July 2024.

The details of holdings of performance rights as at 30 June 2024 and the milestones are described in the tables below: Name No. of Performance Rights Milestones

2022 New Milestones

Milestone	Description
New Milestone 1	The Group achieving total consolidated EBIT of not less than A$nil (i.e. break-even) in a singlefinancial year (being 1 Jan to 31 Dec) based on audited accounts having been prepared by anexternal auditor or other suitable expert.
New Milestone 2	The Group achieving total consolidated revenue of not less than A$15,000,000 in a single financialyear (being 1 Jan to 31 Dec) based on audited accounts having been prepared by an externalauditor or other suitable expert.
New Milestone 3	The Group achieving total consolidated EBIT of more than A$2,000,000 in a single financial year(being 1 Jan to 31 Dec) based on audited accounts having been prepared by an external auditor orother suitable expert.

Note 11. Share-based payments (continued)

2023 New Milestones

Milestone	Description
New Milestone 1	Reaching operating cashflow break even as measured by the total of four consecutive positivequarters as disclosed in the Company's ASX Appendix 4C item 1.9, excluding revenue received inthe form of government grants, allowances, rebates or other hand outs.
New Milestone 2	Total Shareholder Return (TSR) of 100% as measured by the 10 day Volume Weighted AveragePrice (VWAP) of the Company's shares at the date of issuing the Performance Rights (Base Price)and the 10 day VWAP of the Company's shares at any given date (Milestone Price) up until thePerformance Rights lapse. The VWAP of trading in the Company's securities on the ASX marketand Chi-X market, excludes block trades, large portfolio trades, permitted trades during the pretrading hours period, permitted trades during the post-trading hours period, out of hours trades andexchange traded option exercises. The formula for calculating the TSR is: ((Milestone PriceBase)+dividends)/Base Price.

Reconciliation of expense and share-based payment reserve

During the period to 30 June 2024, $81,510 (2023: ($16,206) has been recognised as set out below:

Share based payments recognised cumulatively to 31 December 2023	148,870
Recognition of pro-rata expense for Performance rights granted 25 May 2023 (i) (ii) (iii)	29,640
Recognition of pro-rata expense for Loan funded share scheme (iv) (v)	24,835
Recognition of pro-rata expense for options issued to African employees (vii)	9,139
Recognition of pro-rata expense for Performance rights granted 3 June 2022 (xi)	15,596
Recognition of options granted 4 June 2022, vested 1 April 2024 and 1 July 2024 (xii)	2,300
Share-based payments recognised during the period to 30 June 2024	81,510
Share-based payment recognised cumulatively through P&L to 30 June 2024	230,380
Options issued cumulatively to 31 December 2023 for share issuance services	40,000
Loan funded and free shares issued cumulatively to 31 December 2023	(214,500)
Share-based payment reserve as at 30 June 2024	55,880
Share-based payment reserve as at 31 December 2024	(25,630)
Share-based payments recognised during the period to 30 June 2024	81,510
Share-based payment reserve at 30 June 2024	55,880

RocketDNA Ltd. Directors' declaration 30 June 2024

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 30 June 2024 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

___________________________

Christopher Clark Chief Executive Officer

28 August 2024

INDEPENDENT AUDITOR'S REVIEW REPORT TO THE MEMBERS OF ROCKETDNA LTD AND ITS CONTROLLED ENTITIES

Report on the Half-Year Financial Report

Conclusion

We have reviewed the accompanying half-year financial report of RocketDNA Ltd and its controlled entities (the Group), which comprises the consolidated statement of financial position as at 30 June 2024, the consolidated statement of comprehensive income, the consolidated statement of changes in equity and consolidated statement of cash flows for the half-year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information, and the directors' declaration.

Based on our review, which is not an audit, nothing has come to our attention that causes us to believe that the half-year financial report of the Group is not in accordance with the Corporations Act 2001, including:

• a) giving a true and fair view of the consolidated financial position of the Group as at 30 June 2024 and of its consolidated financial performance for the half-year ended on that date; and
• b) complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.

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 preparation of the half-year financial report that 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. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, anything has come to our attention that causes us to 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 consolidated financial position as at 30 June 2024 and its consolidated 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. As the auditor of the Group, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

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.

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001.

HALL CHADWICK AUDIT (WA) PTY LTD NIKKI SHEN CA ABN 42 163 529 682 Director

Dated this 28th day August 2024 Perth, Western Australia