Announcement PDF Integrated Research Limited Appendix 4D Half‐year Report Appendix 4D Half‐year report Name of entity INTEGRATED RESEARCH LIMITED ABN 76 003 588 449 Reporting period (half‐year ended) 31 December 2023 Previous corresponding period (half‐year ended) 31 December 2022 For announcement to the market Extracts from this report for announcement to the market Revenues from ordinary activities Up 6% to A$000 40,844 Profit before tax attributable to members Up 274% to 11,986 Net profit for the period attributable to members Up 248% to 11,181 Dividends (distributions) Interim dividend Previous corresponding period Amount per security Franked amount per security Nil Nil N/A N/A Brief explanation of results Please refer to page 2 ‘Review of Operations’ for an explanation of the results. This information should be read in conjunction with Integrated Research Limited 2023 Annual Report. The information provided in this report contains all the information required by ASX Listing Rule 4.2A. December 2023 Cents December 2022 Cents 40.75 34.93 December 2023 $’000 December 2022 $’000 No interim dividend has been declared for the current period Nil Nil Total dividends provided for or paid Nil Nil NTA backing Net tangible asset backing per ordinary security Dividends INTEGRATED RESEARCH LIMITED AND CONTROLLED ENTITIES FOR THE HALF‐YEAR ENDED 31 DECEMBER 2023 ABN: 76 003 588 449 ASX CODE: IRI INTEGRATED RESEARCH LIMITED HALF‐YEAR ENDED 31 DECEMBER 2023 Contents Directors’ Report Consolidated Interim Financial Report Consolidated Statement of Comprehensive Income Consolidated Statement of Financial Position Consolidated Statement of Changes in Equity Consolidated Statement of Cash Flows Notes to the Consolidated Financial Statements Directors’ Declaration Auditor’s Independence Declaration Independent Auditor’s Review Report 1 4 5 6 7 8 13 14 15 INTEGRATED RESEARCH LIMITED HALF‐YEAR ENDED 31 DECEMBER 2023 Directors’ Report The Directors present their report together with the consolidated financial report for the half‐year ended 31 December 2023 and the review report thereon. Directors The Directors of Integrated Research Limited at any time during or since the end of the half‐year are: Peter Lloyd – Independent Non‐Executive Director and Chairman John Ruthven – Managing Director and Chief Executive Officer Cathy Aston – Independent Non‐Executive Director Mark Brayan – Independent Non‐Executive Director (appointed 22 November 2023) Michael Hitz – Independent Non‐Executive Director (appointed 23 October 2023) Allan Brackin – Independent Non‐Executive Director (resigned 30 September 2023) Anne Myers – Independent Non‐Executive Director (retired 22 November 2023) James Scott– Independent Non‐Executive Director (resigned 30 January 2024) Principal Activities Integrated Research Limited’s principal activities are the design, development, implementation and sale of systems and applications management computer software for business‐critical computing, Unified Communication networks and Payment networks. Half‐Year Results The following table summarises the key revenue, expense and profit results for the consolidated entity for the half‐year ended 31 December 2023 compared to the previous corresponding period: In thousands of AUD Revenue from licence fees Revenue from maintenance fees Revenue from subscription fees Revenue from testing solution services Revenue from professional services Total revenue Total expenses Profit before finance income, other losses, and income tax Other losses Finance income Profit before tax 2023 28,439 7,116 1,065 1,755 2,469 40,844 (28,524) 12,320 (1,412) 1,078 11,986 2022 26,374 7,450 855 1,856 1,900 38,435 (36,251) 2,184 (17) 1,037 3,204 Change % 8% (4%) 25% (5%) 30% 6% (21%) 464% 8,206% 4% 274% Income tax (expense)/benefit1 (805) 13 (6,292%) Net profit after income tax 11,181 3,217 248% The Company reported profit after tax of $11.2 million and revenue of $40.8 million for the half year ended 31 December 2023. The result represents a 248% increase in net profit after tax and a 6% increase in revenue on the prior equivalent half. Strong revenue results from the Americas (up 33%), offset by declines in Europe (down 42%) and APAC (down 18%). Total Contract Value2 (“TCV”) of $41.3 million was up 6% on the previous corresponding period noting that the first half was a strong period for renewal business. Of the TCV written in the current half, 10% was attributable to either new customers or new products sold to existing customers. There were 14 new customers added during the period. The Company’s transact and infrastructure business have gathered momentum, growing 28% respectively period on period. 1 The effective income tax expense/(benefit) rate is not 30% of pre‐tax profit due to permanent differences including estimates for the R&D tax incentives and utilisation of unrealised deferred tax assets brought forward from prior periods. 2 Total contract value means the total value of a revenue generating contract written in the period of performance less any residual value from a previous related contract. The value includes software licence and related maintenance, cloud, testing and consulting services. 1 INTEGRATED RESEARCH LIMITED HALF‐YEAR ENDED 31 DECEMBER 2023 Directors’ Report (continued) Review of Operations Revenue Revenue for the reporting period was $40.8 million, an increase of 6% over the previous corresponding period. The following table presents Company revenue for each of the relevant product groups: In thousands of AUD Collaborate 2023 17,766 Infrastructure Transact 10,868 8,523 28% 9,741 7,598 28% 2022 20,414 Change % (13%) Professional Services 2,469 1,900 30% Total revenue 40,844 38,435 6% 2022 13,553 Change % 33% 2,325 3,996 (42%) 8,978 11,002 (18%) The following table presents revenue in native currency by geographic segment: Americas (USD’000) Europe (£’000) Asia Pacific (A$’000) 2023 17,958 Expenses The Company’s operating cost base decreased by 21% to $28.5 million. The decrease in operating expenses was driven by a decrease of staff related costs, no depreciation & amortisation and reduced bad debt provisions. The following table represents an analysis of product and technology expenses: In thousands of AUD Gross product and technology expenses1 Capitalisation of development expenses Amortisation of capitalised expenses Net product and technology expenses 2023 6,672 ‐ ‐ 2022 11,177 (4,483) 5,265 6,672 11,959 1Gross product and technology expenses include product, research and development and technology related operating expenses. Cashflow Cash receipts from customers was $32.4 million for the reporting period with no new debtor factoring. Cash receipts were higher than the corresponding period due to higher TCV and lower receivable ageing. For the financial year ended 30 June 2023, as detailed in the Directors' Report for that financial year, no dividends were paid to the holders of fully paid ordinary shares. Statement of Financial Position At 31 December 2023, the Company held $21.5 million in cash (30 June 2023: $18.6 million). Receivables were higher at the end of the period due to strong TCV towards the end of the period. 2 INTEGRATED RESEARCH LIMITED HALF‐YEAR ENDED 31 DECEMBER 2023 Directors’ Report (continued) Interim Dividend The Board did not declare an interim dividend. The assessment of future dividends will be made after the annual results are available. Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001 The lead auditor’s independence declaration is set out on page 14 and forms part of the Directors' Report for the half‐year ended 31 December 2023. Rounding off Integrated Research Limited is of a kind referred to in ASIC Legislative instrument 2016/191 and in accordance with the Class Order, amounts in the financial report and Directors’ Report have been rounded off to the nearest thousand dollars, unless otherwise stated. Signed in accordance with a resolution of the Directors: Peter Lloyd Chairman John Ruthven Managing Director and Chief Executive Officer Dated at North Sydney this 22nd day of February 2024. 3 INTEGRATED RESEARCH LIMITED HALF‐YEAR ENDED 31 DECEMBER 2023 Consolidated Statement of Comprehensive Income For the half‐year ended 31 December 2023 In thousands of AUD December 2023 December 2022 28,439 7,116 1,065 1,755 2,469 40,844 26,374 7,450 855 1,856 1,900 38,435 (6,672) (19,016) (2,836) (28,524) (11,959) (20,215) (4,077) (36,251) (1,412) (17) Profit before finance income and tax Finance income Profit before tax Income tax (expense)/benefit Profit for the period 10,908 1,078 11,986 (805) 11,181 2,167 1,037 3,204 13 3,217 Other comprehensive income Items that may be reclassified subsequently to profit Foreign exchange translation differences Other comprehensive income for the period (543) (543) 359 359 Total comprehensive income for the period 10,638 3,576 Profit attributable to: Members of Integrated Research 11,181 3,217 Total comprehensive income attributable to: Members of Integrated Research 10,638 3,576 Note Continuing Operations Revenue from contracts with customers Licence fees Maintenance fees Subscription fees Testing solution services Professional services Total revenue 3 Expenditure: Product and technology expenses Sales, professional services and marketing expenses General and administration expenses Total expenditure Other losses Earnings per share attributable to members of Integrated Research Basic earnings per share to ordinary equity holders (AUD cents) 4 6.43 1.86 Diluted earnings per share to ordinary equity holders (AUD cents) 4 6.37 1.86 The consolidated statement of comprehensive income is to be read in conjunction with the accompanying notes set out on pages 8 to 12. 4 INTEGRATED RESEARCH LIMITED HALF‐YEAR ENDED 31 DECEMBER 2023 Consolidated Statement of Financial Position As at 31 December 2023 In thousands of AUD December 2023 June 2023 Current assets Cash and cash equivalents Trade and other receivables Current tax assets Other current assets Total current assets 21,535 38,333 776 2,285 62,929 18,553 40,913 127 3,457 63,050 Non‐current assets Trade and other receivables Other financial assets Right‐of‐use assets Deferred tax assets Other non‐current assets Total non‐current assets 29,848 1,365 306 1,289 1,077 33,885 22,540 1,400 ‐ 1,509 1,213 26,662 Total assets 96,814 89,712 Current liabilities Trade and other payables Provisions Income tax liabilities Deferred revenue Lease liabilities Total current liabilities 7,031 2,464 453 12,281 1,734 23,963 7,901 3,451 415 13,862 1,582 27,211 Non‐current liabilities Provisions Deferred revenue Lease liabilities Other financial liabilities Total non‐current liabilities 869 ‐ 825 2 1,696 935 220 1,470 2 2,627 Total liabilities 25,659 29,838 Net assets 71,155 59,874 Equity Issued capital Reserves Retained earnings Total equity attributable to members of Integrated Research 1,667 8,724 60,764 71,155 1,667 8,624 49,583 59,874 The consolidated statement of financial position is to be read in conjunction with the accompanying notes set out on pages 8 to 12. 5 INTEGRATED RESEARCH LIMITED HALF‐YEAR ENDED 31 DECEMBER 2023 Consolidated Statement of Changes in Equity For the half‐year ended 31 December 2023 In thousands of AUD Share Capital Translation Reserve Employee Benefits Reserve Retained Earnings 1,667 1,870 6,754 49,583 59,874 Profit for the period ‐ ‐ ‐ 11,181 11,181 Other comprehensive income ‐ (543) ‐ ‐ (543) Total comprehensive income for the period ‐ (543) ‐ 11,181 10,638 Expensed employee options and performance rights ‐ ‐ 643 ‐ 643 1,667 1,327 7,397 60,764 71,155 Share Capital Translation Reserve Employee Benefits Reserve Retained Earnings Total 1,667 641 5,996 78,809 87,113 Profit for the period ‐ ‐ ‐ 3,217 3,217 Other comprehensive income ‐ 359 ‐ ‐ 359 Total comprehensive income for the period ‐ 359 ‐ 3,217 3,576 Expensed employee options and performance rights ‐ ‐ 293 ‐ 293 1,667 1,000 6,289 82,026 90,982 Balance as at 1 July 2023 Balance at 31 December 2023 Balance as at 1 July 2022 Balance at 31 December 2022 Total The consolidated statement of changes in equity is to be read in conjunction with the accompanying notes set out on pages 8 to 12. 6 INTEGRATED RESEARCH LIMITED HALF‐YEAR ENDED 31 DECEMBER 2023 Consolidated Statement of Cash Flows For the half‐year ended 31 December 2023 In thousands of AUD December 2023 December 2022 32,439 (27,729) 4,710 (1,305) 3,405 31,724 (29,907) 1,817 (812) 1,005 Cash flows from investing activities Payments for capitalised development Payments for property, plant and equipment Interest received Net cash used in investing activities ‐ (3) 1,133 1,130 (4,483) (198) 1,117 (3,564) Cash flows from financing activities Payment of lease liabilities Interest payments Net cash used in financing activities (947) (54) (1,001) (705) (81) (786) Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at 1 July Effects of exchange rate changes on cash Cash and cash equivalents at 31 December 3,534 18,553 (552) 21,535 (3,345) 12,329 272 9,256 Cash flows from operating activities Cash receipts from customers Cash paid to suppliers and employees Cash generated from operations Income taxes paid Net cash from operating activities The consolidated statement of cash flows is to be read in conjunction with the accompanying notes set out on pages 8 to 12. 7 INTEGRATED RESEARCH LIMITED HALF‐YEAR ENDED 31 DECEMBER 2023 Notes to the Consolidated Financial Statements For the half‐year ended 31 December 2023 In thousands of AUD Note 1. Significant accounting policies a) Statement of Compliance The half‐year financial report is a general purpose financial report prepared in accordance with the Corporations Act 2001 and AASB 134 Interim Financial Reporting. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 Interim Financial Reporting. The half‐year report does not include notes of the type normally included in an annual financial report and should be read in conjunction with the most recent annual financial report. b) Basis of Preparation The interim financial report is prepared on the historical cost convention, with the exception of financial instruments for the purposes of cash flow hedges, which are at fair value. All amounts are presented in Australian dollars unless otherwise stated. Integrated Research Limited is a for‐profit Company limited by ordinary shares. Integrated Research Limited is of a kind referred to in ASIC Legislative instrument 2016/191. In accordance with that Class Order, amounts in the financial report and Directors’ Report and the half‐year financial report have been rounded off to the nearest thousand dollars, unless otherwise indicated. New accounting standards and interpretations The accounting policies and methods of computation adopted in the preparation of the half‐year financial report are consistent with those adopted and disclosed in Integrated Research Limited's 2023 annual financial report. These accounting policies are consistent with Australian Accounting Standards and with International Financial Reporting Standards. 8 INTEGRATED RESEARCH LIMITED HALF‐YEAR ENDED 31 DECEMBER 2023 Note 2. Segment information The Chief Operating Decision Maker, “CODM”, (being the Chief Executive Officer) reviews a variety of information on the performance of Prognosis across the group for the purpose of resource allocation. The principal geographical regions are The Americas – Operating from the United States with responsibility for the countries in North, Central and South America, Europe – operating from the United Kingdom and Germany with responsibility for the countries in Europe, Asia Pacific – operating from Australia and Singapore with responsibility for the countries in the rest of the world and Corporate Australia – with responsibility for research and development and corporate head office functions of the Company. Inter‐segment pricing is determined on an arm’s length basis. Information regarding these geographic regions is presented below. Americas Europe Asia Pacific Corporate Australia1 Eliminations Consolidated In thousands of AUD 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 Sales to customers outside the consolidated entity 27,404 20,310 4,462 7,122 8,978 11,002 ‐ ‐ ‐ ‐ 40,844 38,435 ‐ ‐ ‐ ‐ ‐ ‐ 23,869 18,687 (23,869) (18,687) ‐ ‐ 27,404 20,310 4,462 7,122 8,978 11,002 23,869 18,687 (23,869) (18,687) 40,844 38,435 Inter‐region revenue2 Total regional revenue In local currency3 Sales to customers outside the consolidated entity Inter‐region revenue2 Total regional revenue Americas (USD) 2023 2022 Europe (UK Sterling) 2023 2022 17,958 13,553 2,325 3,996 ‐ 17,958 ‐ 13,553 ‐ 2,325 ‐ 3,996 1 Corporate Australia includes research and development, hedging and corporate head office functions of Integrated Research Limited. Inter‐region revenue represents the cost of sale of licence from Corporate Australia to its related sales functions. 3 Segment results represented in local currencies. 2 Note 3. Revenue from contracts with customers Information regarding the disaggregation of the Company’s revenues from contracts with customers is presented below. Consolidated Consolidated December December 2023 2022 In thousands of AUD Timing of revenue recognition At a point in time Over time 28,439 12,405 26,374 12,061 Total Revenue from contracts with customers 40,844 38,435 Type of product group Collaborate Infrastructure Transact Professional Services 17,766 10,868 9,741 2,469 20,414 8,523 7,598 1,900 Total revenue 40,844 38,435 9 INTEGRATED RESEARCH LIMITED HALF‐YEAR ENDED 31 DECEMBER 2023 Note 4. Earnings per Share Basic earnings per share The calculation of basic earnings per share for the half‐year ended 31 December 2023 was based on the profit attributable to ordinary shareholders of $11,181,000 (half‐year ended 31 December 2022: $3,217,000) and a weighted average number of ordinary shares outstanding during the half‐year ended 31 December 2023 of 173,949,026 (half‐year ended 31 December 2022 of 172,775,305). Diluted earnings per share The calculation of diluted earnings per share for the half‐year ended 31 December 2023 was based on the profit attributable to ordinary shareholders of $11,181,000 (half‐year ended 31 December 2022: $3,217,000) and a weighted average number of ordinary shares (diluted with the probability of outstanding options and rights vesting) outstanding during the half‐year ended 31 December 2023 of 175,537,645 (half‐year ended 31 December 2022: 172,799,939). Note 5. Employee Equity benefits Performance Rights and Options Plan – November 2011 The consolidated entity has a performance rights and options plan that enables Integrated Research Limited to offer performance rights and options to eligible employees to obtain shares in Integrated Research Limited contingent upon performance conditions being met. The performance conditions may be a service period only or a service period and either a net profit after tax or total shareholder return hurdle. The performance rights are automatically exercised into shares upon the performance conditions being met at zero cost. Options are exercisable by employees after the vesting date but before the expiry date (which is five years from the grant date) at their exercise price. The following instruments were granted during the period: Grant Date August 2023 October 2023 November 2023 Type Performance rights Performance rights Performance rights Quantity 265,000 4,872,158 1,648,720 Exercise price ‐ ‐ ‐ Expiry date September 2025 September 2026 August 2026 The fair value of the Instruments including assumptions used are as follows: Grant date Fair value at measurement date Aug 2023 $0.400 Oct 2023 $0.330 ‐ $0.440 Nov 2023 $0.074 (T1) $0.066 (T2) $0.054 (T3) Share price $0.400 ‐ $0.440 $0.330 $0.300 Exercise price Nil Nil nil Expected volatility N/A N/A 64.74% Contractual life (expressed in days) 766 1,077 1,014 Expected dividends 0.0% 0.0% 0.0% Risk‐free interest rate (based on 3 year treasury bonds) N/A N/A 3.97% Performance hurdles ‐ IRI share price at testing date N/A N/A $0.80 (T1) $1.20 (T2) $1.60 (T3) Aug‐24 (T1) Testing date N/A N/A Aug‐25 (T2) Aug‐26 (T3) Model Used Black Scholes Black Scholes Monte Carlo The fair values of services received in return for performance rights and options granted to employees is measured by reference to the fair value of rights granted. 10 INTEGRATED RESEARCH LIMITED HALF‐YEAR ENDED 31 DECEMBER 2023 The following instruments were outstanding as at 31 December 2023: Grant Date August 2021 November 2021 May 2022 November 2022 November 20221 December 2022 August 2023 October 2023 November 20232 Type Quantity 1,147,332 186,477 6,734 90,400 1,589,012 2,468,531 96,667 4,834,157 1,648,720 Options Performance rights Performance rights Performance rights Performance rights Performance rights Performance rights Performance rights Performance rights Exercise price $1.98 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Expiry date August 2026 August 2024 August 2024 August 2025 August 2025 September 2025 September 2025 September 2026 August 2026 1 Performance rights allocated have market hurdles attached to their vesting conditions to be tested in August 2023, August 2024 and August 2025. 2 Performance rights allocated have market hurdles attached to their vesting conditions to be tested in August 2024, August 2025 and August 2026. During the period, the following performance rights were exercised into ordinary shares for nil consideration. Grant Date September 2020 November 2020 November 2021 November 2022 December 2022 August 2023 Number of Rights 5,921 17,424 179,677 45,200 1,231,386 48,333 Expiry date August 2023 August 2023 August 2024 August 2025 September 2025 September 2025 Note 6. Financial Instruments Forward foreign exchange contracts The consolidated entity is exposed to foreign currency risk on sales and purchases that are denominated in a currency other than the AUD. The currencies giving rise to this risk are primarily United States Dollar, UK Sterling and the Euro. The consolidated entity uses forward exchange contracts to hedge its foreign currency risk. The forward exchange contracts have maturities of less than two years after the reporting date. This was in place during 2022, however no hedging contracts were outstanding for 2023. The consolidated entity classifies its option and forward exchange contracts hedging forecasted transactions as cash flow hedges and measures them at fair value. The following table details the option and forward foreign currency contracts outstanding as at reporting date: Outstanding contracts FX Forwards Sell US Dollar Less than 3 months 3 to 6 months Average Exchange Rate Foreign Currency Contract Value Fair Value 2023 2022 2023 FC’000 2022 FC’000 2023 A$’000 2022 A$’000 2023 A$’000 2022 A$’000 ‐ ‐ 0.71 0.72 ‐ ‐ 750 750 ‐ ‐ 1,058 1,043 ‐ ‐ (48) (59) ‐ (107) These hedge assets and liabilities were classified as a level 2 fair value measurement, being derived from inputs provided from financial institutes, rather than quoted prices that are observable for the asset either directly (i.e. as prices) or indirectly (i.e. derived from prices). The fair value measurement of the over‐the‐counter forward contract would not qualify as Level 1 as there was not a quoted price for the actual contract, even though data used to value the contract may be derived entirely from active foreign‐exchange and interest‐rate market. 11 INTEGRATED RESEARCH LIMITED HALF‐YEAR ENDED 31 DECEMBER 2023 Note 6. Financial Instruments (continued) Fair value of financial instruments The carrying value of financial assets and financial liabilities of the consolidated entity is a reasonable approximation of their fair value. Financial assets For non‐current trade debtors Integrated Research Limited has considered a discount rate to recognise the net present value of the debtors. Level 3 inputs have been considered including corporate borrowing rates, size of the customer, jurisdiction of the customer and historical default rates. A discounted cashflow model was used to derive the fair value. The range of discount rates was between 3.5% to 9.75%. Credit risk management Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the consolidated entity. The consolidated entity has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral where appropriate, as a means of mitigating the risk of financial loss from defaults. Trade receivables consist of a large number of customers, spread across diverse industries and geographical areas. The largest single counterparty balance with any one customer at 31 December 2023 was $9.8 million (30 June 2023: $2.7 million). Ongoing credit evaluation is performed on the financial condition of accounts. The Company has a program to sell selected account receivable balances to a third party without recourse. There were no sales of accounts receivables during the current or prior comparative reporting period. The Company continues to bear maintenance support obligations to the end customers which are carried as a liability in the deferred revenue account of the Company’s balance sheet of $0.1 million (30 June 2023: $0.5 million). The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit ratings assigned by international credit‐rating agencies. Note 7. Contingent liabilities There were no contingent liabilities as at 31 December 2023. Note 8. Subsequent events There were no events after the interim balance sheet date which are expected to have a material effect on the consolidated entity’s financial position. 12 INTEGRATED RESEARCH LIMITED HALF‐YEAR ENDED 31 DECEMBER 2023 Directors’ Declaration In accordance with a resolution of the directors of Integrated Research Limited: In the opinion of the directors: a) The financial statements and notes of Integrated Research Limited for the half‐year ended 31 December 2023 are in accordance with the Corporations Act 2001, including: (i) Giving a true and fair view of the consolidated entity’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 Standards and the Corporations Regulations 2001. b) There are reasonable grounds to believe that Integrated Research Limited will be able to pay its debts as and when they become due and payable. Dated at North Sydney this 22nd day of February 2024. On behalf of the Directors Peter Lloyd Chairman John Ruthven Managing Director and Chief Executive Officer 13 Ernst & Young 200 George Street Sydney NSW 2000 Australia GPO Box 2646 Sydney NSW 2001 Tel: +61 2 9248 5555 Fax: +61 2 9248 5959 ey.com/au Auditor’s Independence Declaration to the Directors of Integrated Research Limited As lead auditor for the review of Integrated Research Limited for the half-year ended 31 December 2023, I declare to the best of my knowledge and belief, there have been: a) No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; b) No contraventions of any applicable code of professional conduct in relation to the review; and c) No non-audit services provided that contravene any applicable code of professional conduct in relation to the review. This declaration is in respect of Integrated Research Limited and the entities it controlled during the financial period. Ernst & Young Julian M. O’Brien Partner 22 February 2024 A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation 14 Ernst & Young 200 George Street Sydney NSW 2000 Australia GPO Box 2646 Sydney NSW 2001 Tel: +61 2 9248 5555 Fax: +61 2 9248 5959 ey.com/au Independent Auditor’s Review Report to the Members of Integrated Research Limited Conclusion We have reviewed the accompanying half-year financial report of Integrated Research Limited (the Company) and its subsidiaries (collectively the Group), which comprises the consolidated statement of financial position as at 31 December 2023, the 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, 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, we have not become aware of any matter that makes us believe that the half-year financial report of the Group does not comply with the Corporations Act 2001, including: a. Giving a true and fair view of the consolidated financial position of the Group as at 31 December 2023 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. 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