Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Other information The directors are responsible for the other information. The other information comprises the information included in the Group’s annual report for the year ended 30 June 2024, but does not include the financial report and our auditor’s report thereon. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon. 1. Accrual of R&D grant revenue Area of focus (refer also to notes 2, 3, 6 and 7) During the financial year the Group recorded research and development (“R&D”) grant revenue of $3,226,924, of which $994,600 related to an accrual for qualifying R&D expenditure in the current financial year, and a further $2,232,325 related to the true-up of an accrual made for the prior year R&D claim. The major reason for the true-up related to a determination of eligibility for claiming R&D credits for overseas expenditure. Given that the R&D accrual for grant revenue may differ in its final claim and that there are complexities that arise in its calculation, particularly for the eligibility of qualifying expenditure under the R&D credit regime, as administered by both AusIndustry and the Australian Taxation Office, this is considered a Key Audit Matter for this audit report. How our audit addressed the key audit matter Our audit procedures included: — Understanding the key controls and governance established by management for raising the R&D accrual and claiming R&D tax credits; — Examining the prior year R&D claim to understand the key assumption modification which lead to the additional accrual of R&D revenue; — Recalculating the R&D accrual raised in these financial statements; and — Consulting with our internal R&D specialist, both on the appropriateness of the modification of the claim relative to the prior year accrual, together with an examination of the inputs and assumptions included in the current year R&D accrual. We also ensure that matters relating to the R&D accrual and claim revenue were appropriately disclosed in the financial statements.
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