Announcement PDF AVA RISK GROUP LIMITED AND ITS CONTROLLED ENTITIES Appendix 4D AND INTERIM CONSOLIDATED FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2024 Lodged with the ASX under Listing Rule 4.2.A.3 ABN: 67 064 089 318 ASX CODE: AVA Registered Office: 10, Hartnett Close, Mulgrave VIC 3170 Australia www.theavagroup.com AVA RISK GROUP LIMITED ABN: 67 064 089 318 Table of Contents ASX APPENDIX 4D Results for announcement to the market Other information 1 1 DIRECTORS' REPORT Directors’ Report 3 Auditor’s Independence Declaration 6 INTERIM CONSOLIDATED FINANCIAL REPORT Interim Consolidated Statement of Profit or Loss and Other Comprehensive Income Interim Consolidated Statement of Financial Position Interim Consolidated Statement of Changes in Equity Interim Consolidated Statement of Cash Flows Notes to the Interim consolidated half-year report 7 8 9 10 11 Directors’ Declaration Independent auditor’s review report 20 21 AVA Risk Group Limited ABN: 67 064 089 318 Details of the reporting period and the previous corresponding period Reporting period Half Year Ended 31 December 2024 Previous Corresponding Periods Half Year Ended Year Ended 31 December 2023 30 June 2024 Results for announcement to the market 2024 31 December $000 2023 31 December $000 2,872 17,031 14,159 99% 2,309 (23) (2,332) 254% 2,597 1,576 (1,021) Change % movement Consolidated revenue from operations up 20% Profit after tax attributable to shareholders up EBITDA* up Amount of change $000 * Earnings from continuing operations before interest, tax, depreciation and amortisation (unaudited). Dividends and Distributions Current reporting period Amount per share $ nil Previous corresponding period Amount per share $ 0.0017 Special dividend Record date 6 November 2023 Details of dividends/distribution reinvestment plan The Company does not have a dividend reinvestment plan. Page 1 AVA Risk Group Limited ABN: 67 064 089 318 Net tangible assets per security Net tangible asset backing per ordinary security 2024 2024 31 December 30 June cents cents 5.05c 4.94c Details of associates and joint venture entities The Company did not have any associated entities or joint ventures during the period. Other significant information Refer to the Directors' Report for details on other significant matters and information regarding the Consolidated Entity. Commentary on significant features of operating performance Commentary on Results is included in the attached Directors' Report and the accompanying Group Financial Statements. Page 2 Directors' Report The directors present their report together with the interim financial report of the consolidated entity consisting of AVA Risk Group Limited (the “Company”) and its controlled entities (“AVA Risk Group”) for the half-year ended 31 December 2024 and independent review report thereon. Directors' Names The names of the directors in office at any time during or since the end of the half-year are: Name Period of Directorship D Cronin (Chairman) M Stevens (Non-Executive Director) M McGeever (Non-Executive Director) M Maginnis (Executive Director) Appointed 10 April 2018 Appointed 11 March 2015 Appointed 8 August 2018 Appointed 9 January 2023 The directors have been in office since the start of the financial period to the date of this report unless otherwise stated. Review of operations The operating and financial performance of the Company significantly improved during H1 FY2025. Since January 2023, AVA Risk Group has invested heavily in its commercial capability and technology in order to grow revenue and increase market share. The results for H1 FY2025 indicate that this strategy is providing a platform for continued improved performance. Highlights for H1 FY2025 include: • Strong revenue growth of 20% on the prior year underpinned by improved performance in Detect, resulting in improved earnings performance and 20% growth in recurring service contracts. • Stable and scalable cost base following the completion of the organisational restructure in FY2024. Increased revenue and improved gross margin has resulted in a $2.6 million improvement in EBITDA generating $1.7 million in the current period compared to a loss of $0.9 million in the prior year. • Expansion in strategically important industry verticals and key projects – sovereign border protection, airport perimeter detection, transportation. • Strong sales order intake of $16.3 million driven primarily by the Detect segment. • Confirmed sales order backlog of $7.6 million, including $2.4 million in contracted annual recurring revenue. The order backlog consists of equipment orders and multi-year service contracts. The Company is focused on developing its sales opportunity pipeline in key industry verticals and growing its recurring revenue base. Aura Ai-X, the Company’s market leading, latest generation fibre sensing technology, has underpinned significant operating improvements in the Detect segment. During H1 FY2025 repeat orders for Aura Ai-X were fulfilled for protection of a critical European border, including the replacement of some competitor technology which had previously been installed. Airport perimeter detection is an emerging industry vertical and sales orders were fulfilled for the deployment of systems at Dubai International Airport and a major North American airport. The value of recurring service contracts grew by 20% to $2.4 million during H1 FY2025 driven by increased system deployments. Page 3 Directors' Report Review of operations (continued) The Company has deepened its relationship with key partners such as UGL, with which additional contract variations have been received to support the Sydney Metro project, including joint development opportunities with the Illuminate segment. Further progress was made with Telstra on developing applications of AVA’s technology for the telecommunications sector and the Company remains confident that this will be a significant driver of future growth. Detect segment revenue of $12.1 million represents growth of 57% on the previous year. The improved performance is driven by completion of a number of key projects including the supply of equipment to a mine site in Chile and further deployment of additional systems for Eastern European border protection. Revenue in the Access segment of $2.0 million for H1 FY2025 is $1.2 million lower than the previous year which included initial stocking orders of the Cobalt series locks for dormakaba in the U.S. Leveraging dormakaba’s global distribution network remains critical to near term growth in the Access segment. In the Illuminate segment, the new “LoRa” product is enabling the seamless integration of a number of the Company’s devices in a common solution. The complementary nature of Illuminate products with Detect is demonstrated by the development work being undertaken with UGL to provide solutions on the Sydney Metro project and by some Illuminate product trials undertaken with Telstra. Financial performance for the first half significantly improved, driven by increased Detect revenue. Total revenue of $17.0 million grew by 20% on the previous year ($14.2 million for HY2024). Consolidated gross margin grew to 64%, up 3% on the prior year driven by an increase in higher margin Detect revenue. Operating costs have stabilised following completion of the restructure during FY2024 and were $0.3 million lower than the prior year. The resulting EBITDA of $1.7 million is $2.6 million higher than the EBITDA loss of $0.9 million in the previous year. The improved performance demonstrates the scalability of the cost base and leaves the Company well positioned to continue to grow earnings. Net loss for the period was $0.02 million (HY2024 was a net loss of $2.3 million) driven by improved EBITDA. The Company had a cash balance at 31 December 2024 of $4.7 million. Technology and commercial capability are critical to the future growth of AVA Risk Group. During the first half of the year the Company continued to invest in the Aura platform to ensure it maintains its market leading status and delivers superior performance to customers. Growth catalysts exist in each operating segment and the Company is focussed on improving its financial performance through: • Growth in sales order intake. • Growth in sales order backlog. • Increasing recurring revenue. • High gross margins of 60% - 65%. • Scalable cost base generating positive EBITDA. Page 4 Directors' Report Events after the Balance date There has been no matter or circumstance which has arisen since 31 December 2024 that has significantly affected or may significantly affect: a) b) c) the operations subsequent to 31 December 2024, of AVA Risk Group Limited, or the results of those operations, or the state of affairs, subsequent to 31 December 2024, of AVA Risk Group Limited. Rounding of amounts In accordance with ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191, the amounts in the directors’ report and in the financial report have been rounded to the nearest one thousand dollars, or in certain cases, to the nearest dollar (where indicated). Auditor’s independence declaration A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 in relation to the review for the half-year is provided with this report. This report is made in accordance with a resolution of directors. David Cronin Chairman 25 February 2025 Page 5 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 DECLARATION OF INDEPENDENCE BY WAI AW TO THE DIRECTORS OF AVA RISK GROUP LIMITED As lead auditor for the review of AVA Risk Group Limited for the half-year ended 31 December 2024, 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 AVA Risk Group Limited and the entities it controlled during the period. Wai Aw Director BDO Audit Pty Ltd Melbourne, 25 February 2025 BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of A.C.N. 050 110 275 Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and A.C.N. 050 110 275 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. AVA Risk Group Limited Interim Consolidated Statement of Profit or Loss and Other Comprehensive Income Note 6 months ended 31 December 31 December 2024 2023 $'000 $'000 5 17,031 39 17,070 (6,065) (5,333) (965) (149) (646) (495) (951) (235) (1,708) (139) (77) (578) (17,341) 14,159 67 14,226 (5,534) (6,156) (1,046) (189) (619) (357) (690) (12) (1,098) (111) (98) (546) (16,456) Loss before income tax Income tax benefit (expense) Loss after income tax for the period (271) 248 (23) (2,230) (102) (2,332) Other comprehensive income for the period, net of tax Items that may be reclassified subsequently to profit and loss Exchange differences on translation of foreign operations, net of tax Total other comprehensive income (loss) for the period 731 731 (105) (105) Loss for the period attributable to Equity holders of the parent company (23) (2,332) Total comprehensive income (loss) for the period attributable to Equity holders of the parent company: 708 (2,437) Cents (0.01) (0.01) Cents (0.91) (0.91) Revenue from contracts with customers Other income Total Revenue and other income Cost of raw materials and consumables used Employee benefit expenses Research and development Advertising and marketing Travel and entertainment Facilities and office Compliance, legal, and administration Impairment of receivables Depreciation and amortisation expenses Finance expense Foreign exchange losses Other expenses Total Expenses Earnings per share attributable to ordinary shareholders of AVA Risk Group 8 8 Basic loss per share Diluted loss per share The above Interim Consolidated Statement of Profit and Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes. Page 7 AVA Risk Group Limited Interim Consolidated Statement of Financial Position As at 31 December 2024 $'000 As at 30 June 2024 $'000 4,668 8,718 1,779 1,008 6,686 22,859 5,084 7,360 1,651 738 6,584 21,417 Non-Current Assets Plant and equipment Intangible assets Right of use assets Deferred tax asset Total Non-Current Assets TOTAL ASSETS 889 12,852 1,260 104 15,105 37,964 942 12,798 854 46 14,640 36,057 LIABILITIES Current Liabilities Trade and other payables Contract liabilities Borrowings Lease Liability Provisions Total Current Liabilities 2,930 436 1,983 468 1,318 7,135 2,930 394 1,952 326 1,267 6,869 Non-Current Liabilities Provisions Borrowings Lease liabilities Contract liabilities Total Non-Current Liabilities TOTAL LIABILITIES NET ASSETS 105 107 801 1,042 2,055 9,190 28,774 91 203 540 405 1,239 8,108 27,949 57,931 (29,280) 123 28,774 57,932 (29,257) (726) 27,949 Note ASSETS Current Assets Cash and cash equivalents Trade and other receivables Contract assets Prepayments Inventories Total Current Assets 6 EQUITY Contributed Equity Accumulated losses Reserves TOTAL EQUITY 7 The above Interim Consolidated statement of Financial Position should be read in conjunction with the accompanying notes. Page 8 AVA Risk Group Limited Interim Consolidated Statement of Changes in Equity At 1 July 2024 Loss for the period Other comprehensive income Total comprehensive income for the period Contributed equity Share-based payment Reserve Foreign Exchange Translation Reserve Other Equity Reserves Accumulated Losses Total Equity $’000 $’000 $’000 $’000 $’000 $’000 57,932 2,381 (60) (3,047) (29,257) 27,949 - - - - (23) (23) 731 - - 731 731 - (23) 708 - - - (1) 118 - - - 117 671 (3,047) (29,280) 28,774 - - Transactions with owners in their capacity as owners (1) Share issue costs 118 Share based payments Total transactions with owners in their capacity as (1) 118 owners Balance at 31 December 57,931 2,499 2024 At 1 July 2023 Loss for the period Other comprehensive loss Total comprehensive loss for the period 53,831 - 2,050 - 38 (105) (3,047) - (23,618) (2,332) - 29,254 (2,332) (105) - - (105) - (2,332) (2,437) - - (435) - (435) (1) 208 - - (435) (228) (67) (3,047) (26,385) 26,589 Transactions with owners in their capacity as owners Dividends/distributions (1) Share issue costs 208 Share based payments Total transactions with owners in their capacity as (1) 208 owners Balance at 31 December 53,830 2,258 2023 Page 9 AVA Risk Group Limited Interim Consolidated Statement of Cash Flows Note For the half-year ended 31 December 2024 Cash flow from operating activities Receipts from customers (inclusive of GST) Payments to suppliers and employees (inclusive of GST) Interest received Tax refunded (paid) Finance costs Lease interest paid Net cash flows generated from (used in) from operating activities 6 months ended 31 December 31 December 2024 2023 $’000 $’000 15,177 (14,387) 24 394 (16) (123) 14,602 (15,740) 10 (136) (104) (6) 1,069 (1,374) Cash flow from investing activities Payment for intangible assets Payment for plant and equipment Net cash flows used in investing activities (1,142) (171) (1,313) (1,266) (122) (1,388) Cash flow from financing activities Share issue expense Repayment of borrowings Proceeds on short-term borrowings Dividends paid Payment of lease liabilities Net cash flows used in financing activities (1) (347) 368 (223) (203) (1) (177) (435) (181) (794) Net decrease in cash and cash equivalents Net foreign exchange differences on cash Cash and cash equivalents at beginning of period Cash and cash equivalents at end of the period (447) 152 3,468 3,173 (3,556) (35) 3,887 296 6 Page 10 AVA Risk Group Limited Notes to the Interim Consolidated Financial Statements 31 December 2024 1. Corporate information The consolidated financial statements of AVA Risk Group Limited and its subsidiaries (collectively, "the Group") for the half-year ended 31 December 2024 were authorised for issue in accordance with a resolution of the directors on 25 February 2025. AVA Risk Group Limited ("the parent") is a limited company incorporated and domiciled in Australia and whose shares are publicly traded. The registered office is located at 10 Hartnett Close, Mulgrave, Victoria 3170, Australia. The Group is principally engaged in sensing and access technology protecting high value assets and critical infrastructure. 2. Basis of preparation and changes to the Group's accounting policies (a) Basis of preparation This interim consolidated half-year financial report has been prepared in accordance with Australian Accounting Standard AASB 134 Interim Financial Reporting , as appropriate for for-profit entities, and the Corporations Act 2001. This interim consolidated half-year financial report does not include all the notes of the type usually included in an annual financial report. It is recommended that this half-year financial report be read in conjunction with the annual financial report for the year ended 30 June 2024 and any public announcements made by AVA Risk Group Limited during the halfyear in accordance with any continuous disclosure obligations arising under the Corporations Act 2001. The half-year financial report was authorised for issue by the directors as at the date of the directors’ report. (b) Going concern The financial statements have been prepared on a going concern basis which assumes the Group will have sufficient cash to pay its debts as and when they become payable for a period of at least 12 months from the date the financial report was authorised for issue. (c) Rounding amounts In accordance with ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191, the amounts in the directors’ report and in the financial report have been rounded to the nearest one thousand dollars, or in certain cases, to the nearest dollar (where indicated). Page 11 AVA Risk Group Limited Notes to the Interim Consolidated Financial Statements 31 December 2024 2. Basis of preparation and changes to the Group's accounting policies (continued) (d) Critical accounting estimates and assumptions The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. (i) Impairment of tangible and intangibles assets The Group determines whether tangible and intangible assets are tested at least on an annual basis to evaluate whether indicators of impairment exist in relation to the continued use of the asset by the consolidated entity. The Group has three identifiable CGUs: • Detect • Access • Illuminate No impairments were recognised for the period (June 2024: $1,545,000). (ii) Capitalisation of development costs The capitalisation of development costs required judgement to be applied. Management assesses and exercises judgment on expenditures that meet the definition of development. (iii) Amortisation of intangible assets Judgement is required to assess the useful economic life of intangible assets. Intangible assets, including capitalised development costs that have a finite life are amortised on a systematic basis over the expected life of the asset and cease at the earlier of the date that the asset is classified as held for sale and the date that the asset is derecognised. 3. Related party transactions The Group purchased consulting services from Pierce Group Asia Pte Ltd a related entity through Chairman and Non-Executive Director, David Cronin, for $137,800 (HY2024: $142,500). Accounts payable balance at 31 December 2024 totals $17,050 (30 June 2024: $nil). There have been no other related party transactions other than those between the Company and its subsidiaries during the half-year ended 31 December 2024. Page 12 AVA Risk Group Limited Notes to the Interim Consolidated Financial Statements 31 December 2024 4. Segment information (a) Description of segments Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments has been identified as the Board of Directors of AVA Risk Group Limited. The Group’s segments were based on three separately identifiable products. The Group operates in Detect, Access and llluminate, which are its reportable segments. These divisions offer different products and services and are managed seperately because they require different technology and marketing strategies. The following summary describes the operations of each reportable segment: Product type Technology Reportable segment Detect Access Illuminate Operations Manufactures and markets ‘smart’ fibre optic sensing systems for security and condition monitoring for a range of applications including perimeters, pipelines, conveyors, power cables and data networks. Specialises in the development, manufacture and supply of high security biometric readers, security access control and electronic locking products. Specialises in the development and manufacture of illuminators, ANPR cameras and perimeter detectors. (b) Reportable segments Detect $’000 Access $’000 Illuminate $’000 Revenue and other income External customers 12,066 Intersegment revenue 358 Other income 11 Interest Income 13 1,986 7 4 11 2,979 - (365) - 17,031 15 24 Segment revenue and other income EBITDA 12,448 2,512 2,008 (232) 2,979 (429) (365) (275) 17,070 1,576 Depreciation and amortisation Finance costs Income tax (1,243) (23) - (265) (5) 103 (200) (111) 145 - (1,708) (139) 248 31 December 2024 Eliminations Consolidated $’000 $’000 Segment operating profit (loss) 1,246 (399) (595) (275) (23) Total assets Total liabilities 36,147 5,206 12,157 615 4,700 3,373 (15,040) (4) 37,964 9,190 Page 13 AVA Risk Group Limited Notes to the Interim Consolidated Financial Statements 31 December 2024 (b) Reportable segments (continued) Detect $’000 Access $’000 Illuminate $’000 Revenue and other income External customers Intersegment revenue Other income Interest Income 7,798 52 6 3,186 3 4 3,175 2 - - 14,159 57 10 Segment revenue and other income EBITDA 7,856 (686) 3,193 (71) 3,177 (320) 56 14,226 (1,021) Depreciation and amortisation Finance costs Income tax Segment operating loss (612) (3) (20) (1,321) (303) (117) (491) (183) (108) 35 (576) 56 (1,098) (111) (102) (2,332) Total assets Total liabilities 29,915 3,827 11,199 1,005 6,778 3,557 (12,876) 38 35,016 8,427 31 December 2024 31 December 2023 $’000 $’000 31 December 2023 Eliminations Consolidated $’000 $’000 - (c) Geographic information Australia APAC (excl Australia) Europe India MENA United States of America Rest of world Total external revenue by region (d) 2,155 504 6,617 54 1,559 2,369 3,773 1,290 1,947 4,452 296 439 4,647 1,088 17,031 14,159 Non-current operating assets Australia United Kingdom Rest of world Total non-current assets by region 31 December 2024 30 June 2024 $’000 $’000 7,458 6,757 786 15,001 7,040 6,667 887 14,594 Non-current assets for this purpose consist of property, plant and equipment, right-of-use assets, and intangible assets. (e) Reconciliation of non-current assets Non-current operating assets by region Deferred tax assets Total non-current assets 31 December 2024 30 June 2024 $’000 $’000 15,001 104 15,105 Page 14 14,594 46 14,640 AVA Risk Group Limited Notes to the Interim Consolidated Financial Statements 31 December 2024 5. Revenue and other income Consolidated (a) Total other income Total Revenues and other income 12,937 1,222 14,159 23 16 39 10 57 67 39 17,070 67 14,226 15,184 1,847 17,031 12,937 1,222 14,159 Disaggregation of revenue Timing of revenue recognition Goods transferred at a point in time Services transferred over time Total revenue from contracts with customers (d) 15,184 1,847 17,031 Other income Interest received Other income Total other income (c) 31 December 2023 $'000 Revenue from contracts with customers Revenue from sales of goods Revenue from provision of services Total revenue from contracts with customers (b) 31 December 2024 $'000 Performance obligations The Group holds contract liabilities in relation to services including extended warranty, support, commissioning and training wich have been invoiced in advance with the services yet to be provided. Page 15 AVA Risk Group Limited Notes to the Interim Consolidated Financial Statements 31 December 2024 6. Cash and short-term deposits 31 December 2024 $'000 Cash at banks and on hand Short-term deposits Total Cash 30 June 2024 $'000 4,613 55 4,668 4,203 881 5,084 For the purpose of the statement of cash flows, cash and cash equivalents comprise the following: 31 December 2024 $'000 Cash at banks and on hand Short-term deposits Bank overdrafts Cash and cash equivalents 4,613 55 (1,495) 3,173 30 June 2024 $'000 4,203 881 (1,616) 3,468 Bank overdrafts Bank overdrafts relate to existing banking facilities for working capital. At 31 December 2024, the Group had available $1,327,013 (30 June 2024 $1,114,000) of undrawn committed facilities. 7. Issued capital and reserves 31 December 2024 $'000 (a) Ordinary shares Ordinary share capital, issued and fully paid 57,931 57,931 (b) Movement in ordinary shares on issue Number of shares At 1 July 2024 Share issue: On exercise of Performance Share Rights Share issue costs At 31 December 2024 Page 16 30 June 2024 $'000 57,932 57,932 $'000 289,520,722 57,932 617,971 290,138,693 (1) 57,931 AVA Risk Group Limited Notes to the Interim Consolidated Financial Statements 31 December 2024 8. Earnings per Share The following reflects the income used in the basic and diluted loss per share computations: Loss used in calculating earnings per share for basic and diluted Loss after tax 31 December 2024 $'000 31 December 2023 $'000 (23) (23) Total (a) Weighted average number of shares Weighted average number of ordinary shares used as the denominator in calculating basic earnings per share (2,332) (2,332) 31 December 2024 Number 31 December 2023 Number 339,074,034 255,674,104 7,247,302 4,128,188 346,321,336 259,802,292 31 December 2024 Cents 31 December 2023 Cents Adjustments for calculation of diluted earnings per share Dilutive share options / performance rights Weighted average number of ordinary shares adjusted for the effect of dilution used as the denominator in calculating diluted earnings per share (b) Earnings per share Basic loss per share Diluted loss per share (0.01) (0.01) (0.91) (0.91) Since reporting date there have been no transactions involving ordinary shares or potential ordinary shares that would significantly change the number of ordinary shares or potential ordinary shares outstanding between the reporting date and the date of completion of these financial statements. 9. Commitments At 31 December 2024, the Group did not have any material commitments (30 June 2024 $nil). Page 17 AVA Risk Group Limited Notes to the Interim Consolidated Financial Statements 31 December 2024 10. Share-based payments (a) Expense arising from equity-settled share-based payment transactions Consolidated 31 December 2024 31 December 2023 $'000 $'000 Performance Shares (b) 118 208 Number WAEP 4,922,691 6,350,000 (617,971) (2,314,617) 8,340,103 $nil $nil $nil $nil $nil Performance Share Rights (PSRs) i. Outstanding Performance Share Rights - Half Year ended 31 December 2024 Outstanding 1 July 2024 Granted during the period Exercised during the period Forfeited and other movement during the period Outstanding 31 December 2024 ii. HY 2024 Grants During the half year ended 31 December 2024, the Company granted 6,350,000 performance rights as part of remuneration to senior executives. The fair value of the PSRs was based on the Monte-Carlo pricing model. Page 18 AVA Risk Group Limited Notes to the Interim Consolidated Financial Statements 31 December 2024 11. Subsequent events There has been no matter or circumstance which has arisen since 31 December 2024 that has significantly affected or may significantly affect: a) b) c) the operations subsequent to 31 December 2024, of AVA Risk Group Limited, or the results of those operations, or the state of affairs, subsequent to 31 December 2024, of AVA Risk Group Limited. Page 19 Directors' Declaration In the Directors’ opinion: (a) The directors declare that the interim consolidated financial report and notes set out on pages 3 to 18 are in accordance with the Corporations Act 2001 including : (i) Complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 , and other mandatory professional reporting requirements; and (ii) Giving a true and fair view of the financial position of the consolidated entity as at 31 December 2024 and of its performance for the half-year ended on that date. (b) There are reasonable grounds to believe that the Consolidated Group will be able to pay its debts as and whe