Genetic Signatures

51 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2021 32 Note 6: Income tax (continued) The consolidated entity has recorded its first profit during the year ended 30 June 2021. The consolidated entity currently has carried forward losses of $6,384,000 from prior years in respect to its Australian operations, approximately US$3,633,000 in respect to its North American operations, and GBP164,000 from its UK operations. The utilisation of these carried forward losses is conditional on the consolidated entity meeting the conditions for deductibility imposed by the law in the period in which the consolidated entity derives sufficient taxable income in order to utilise these losses. For the year ended 30 June 2021, management has reviewed the deductibility of these losses in comparison to the estimated taxable income derived by the consolidated entity and are confident that sufficient losses are available to offset the taxable income for the financial year ended 30 June 2021. Whilst the consolidated entity has continued to trade positively due to the COVID-19 induced demand, it is currently not known with sufficient certainty how the consolidated entity’s trade will transpire for the FY22 period and beyond. As a consequence, the consolidated entity has elected not to recognise any deferred tax assets or carried forward income tax losses until the probability of recoupment is sufficiently certain. Note 7: Cash and cash equivalents Consolidated 2021 $’000s 2020 $’000s Cash at bank and on hand 5,121 16,176 Cash on deposit (maturity < 12 months) 25,000 15,000 30,121 31,176 Cash at bank and on hand bears floating interest rates. The interest rate relating to cash and cash equivalents for the year was between nil% and 0.4% (2020: between nil% and 1.8%). Genetics Signatures Limited has an unused credit card facility with the bank at the year-end date of $57,000 (2020: $57,000). Note 8: Trade and other receivables Consolidated 2021 $’000s 2020 $’000s Current Trade debtors (a) 5,106 4,649 Provision for expected credit losses (143) - 4,963 4,649 Other receivables (b) 410 574 5,373 5,223 a. Past due but not impaired and impairment of receivables Customers with balances past due amount to $810,000 as at 30 June 2021 ($502,000 as at 30 June 2020) of which the company has recognised a provision for expected credit losses of $143,000 (2020: $NIL) in profit or loss for the year ended 30 June 2021 (2020: $NIL). b. Other receivables These amounts relate to prepayments and accrued interest. None of these receivables are impaired or past due but not impaired. c. Fair value and credit risk Due to the short-term nature of these receivables, their carrying value is assumed to approximate their fair value. Information about the Company’s exposure to fair value and credit risk in relation to trade and other receivables is provided in note 27. Notes to the Financial Statements for the financial year ended 30 June 2021