2025
Unlocking regenerative
healing for everybody
2025 Highlights
04
Results in Brief
06
Chair’s Review
09
CEO’s Report
10
Board of Directors
16
Executive Leadership Team
20
Sustainability Report
22
Directors’ Report
28
Remuneration Report
32
Directors’ Responsibility Statement
43
Independent Auditor’s Report
47
Consolidated Financial Statements
55
Notes to the Consolidated Financial Statements
60
Additional Information
84
Glossary and Other Information
92
Corporate Directory
94
+ KEY DATES
20 August 2025
Annual General Meeting of Shareholders
30 September 2025
Financial Half Year End
25 November 2025*
Half Year Results Announcement
31 March 2026
Financial Year End
This Annual Report is dated 27 June 2025 and is signed
on behalf of Aroa Biosurgery Limited by James McLean,
Independent Chair of the Board and Brian Ward,
Managing Director and CEO.
*Indicative date
CONTENTS
James McLean
Independent Chair of
the Board of Directors
All currency is in New
Zealand dollars and on
a reported basis except
where indicated.
Brian Ward
Managing Director
and CEO
YEAR IN NUMBERS
2025
HIGHLIGHTS
million
$4.2
100
peer
reviewed
studies
published
23%
Total
Revenue
Growth
on FY24
24%
Product
Revenue
Growth
on FY24
38%
Myriad™
Product
Revenue
Growth
on FY24
1%
Gross
Margin
Growth
on FY24
Normalised
EBITDA profit
1
AROA ECM
devices used
in clinical
applications
worldwide
7+ million
Annual Report 2025
Myriad
Sales
Total AROA
Product Sales
$84.7
MILLION
Total
Revenue
23%
GROWTH
ON FY24
86%
Product
Gross Margin
1%
GROWTH
ON FY24
YoY
Growth
24%
$22
MILLION
Cash
Balance
FY21
FY22
FY23
FY25
FY24
0
10
20
30
40
50
60
70
80
90
FY21
FY22
FY23
FY24
FY25
0
10
20
30
40
YoY
Growth
38%
RESULTS
IN BRIEF
7
Endoform™
Sales
0
10
20
30
40
FY21
FY22
FY23
FY24
FY25
TELA Bio™
Sales
YoY
Growth
22%
0
10
20
30
40
FY21
FY22
FY23
FY24
FY25
Sales Team
0
10
20
30
40
50
60
FY21
FY22
FY23
FY24
FY25
Endoform
Myriad
Myriad Active
Accounts
15
YoY
Growth
%
0
50
100
150
200
300
250
FY21
FY22
FY23
FY24
FY25
Research & Development
Spend
% of Product Sales
0
5
10
15
FY21
FY22
FY23
FY24
FY24
FY25
Enivo
Other
Capitalised
30%
21%
20%
17%
13%
Clinical
Evidence
100
0
20
40
60
80
100
120
140
160
180
FY21
FY22
FY23
FY24
FY25
Conference Proceedings
Publications
171
9
AROA maintains a strong cash
position and will continue to make
strategic investment in areas that
will accelerate further growth and
deliver increasing profitability.
As the CEO Report covers in more
detail, we have realigned our senior
leadership roles to better support
our next phase of growth.
With over 100 peer reviewed
publications demonstrating
the efficacy of the AROA ECM
technology, a high calibre team and
results-driven commercial strategy,
the Company is well positioned
to build on its strong foundations,
further increasing market share
and profitability though FY26 and
beyond.
On behalf of the Board, I want
to thank our shareholders for
their continued support, AROA’s
management team for their strong
leadership, and the entire AROA
team for their dedication to
unlocking regenerative healing
for everybody.
James McLean
Independent Chair
of the Board of Directors
FY25 was a significant year for the
Company, delivering a normalised
EBITDA of $4.2m1.
Achieving this level of profitability
is validation of the strategic vision
we laid out several years ago.
It reflects not only the strength
of our AROA ECM technology,
but also the sustained efforts of
our leadership team, employees,
and partners.
The Company’s FY25 performance
reflects steady growth across key
metrics, with an increase in total
revenue of 23% on FY24.
The Myriad portfolio continues
to drive strong growth, achieving
38% year on year sales growth.
The consistently strong growth
of the high margin Myriad
portfolio is supported by a large
body of robust clinical evidence,
improvement in sales productivity
and deeper account penetration.
The Board remains focused on
demonstrating long-term value to
shareholders. This means not only
maintaining our profitability, but
increasing it year over year
through scale, innovation, and
market expansion.
“The company’s
performance reflects
steady growth, with
an increase in total
revenue of 23%
year on year. The
high margin Myriad
portfolio, supported
by robust clinical
evidence, continues to
be a key contributor
to growth.”
The Board remains focused
on demonstrating long
term value to shareholders,
through increased
profitability, innovation
and market expansion.
CHAIR’S
REVIEW
Annual Report 2025
This year the company has made
significant progress towards
growing profitability.
We are pleased to have exceeded
guidance, delivering $84.7m in total
revenue and a normalised EBITDA
profit of $4.2 million1.
I am immensely proud of the
dedication and effort from our
team. It has provided the basis
for our continued growth.
+ Commercial Operations
The Myriad portfolio continues to
perform strongly, with our sales
team delivering 38% year-on-
year growth. This growth was
underpinned by increasing success
in lower limb salvage procedures,
and large complex wounds, which
are key procedures in our target
market - the operating room.
Increasingly, we are seeing
that Myriad sets itself apart
from alternatives by offering
breakthrough value for patients,
surgeons and hospitals. It typically
restores tissue within 3 weeks,
with a single application, and
minimal complications. This not
only improves patient outcomes
but also reduces hospital costs and
enhances operational efficiencies.
Beyond these procedures, we
are also seeing success in a wide
range of other procedures which
underscores Myriad’s versatility.
We see the potential for Myriad to
become the go-to product for soft
tissue reconstruction procedures.
The company’s sales to Tela Bio
of OviTex and OviTex PRS were
up 22% on last year but were
softer than anticipated. This was
predominantly due to operational
challenges. However, the OviTex
portfolio continues to deliver
superior clinical outcomes.
With increased scrutiny being
placed on the use of synthetics,
we remain confident that
OviTex overcomes many of the
shortcomings of existing offerings
and we expect sales will return to
a higher growth trajectory.
This year we’ve reached a
significant milestone - 100
peer reviewed publications
describing the scientific
basis of our AROA ECM
technology.
The Myriad portfolio
continues driving strong
growth, achieving a 38%
year on year increase.
CEO’S
REPORT
11
+ Clinical Evidence
FY25 was a significant year for
clinical evidence, as we reached
100 peer-reviewed publications
describing the scientific basis
of our AROA ECM technology
and clinical outcomes in a wide
range of soft tissue regeneration
applications. We now have a
large body of evidence which
demonstrates the distinctive
properties of our technology, and
the enhanced clinical outcomes.
We also saw the first publication of
clinical evidence from our ongoing
prospective Myriad Augmented
Soft Tissue Reconstruction Registry
(MASTRR) focused on lower limb
salvage. This study, the largest of
its kind, demonstrated that even
in compromised patients with
wounds which are contaminated
and typically difficult to heal,
Myriad restored tissue with a single
application and no complications.
The study also highlighted the
potential for significant cost
savings for hospitals.
“Over the next year, we will
continue focusing on two
key areas: top line growth
driven by Myriad and
increased profitability.”
Annual Report 2025
High quality clinical evidence is
an important factor in persuading
clinicians to adopt a new product.
We will continue investing in this
critical area and in the coming year,
we expect to publish studies in
trauma procedures, pilonidal sinus
disease, and burns procedures,
based on MASTRR data.
+ Product Development
During FY25, product line
extensions in the Myriad and OviTex
product families were successfully
developed and launched, refining
our product portfolios to address
the specific requirements of
particular use cases.
We decided to pause the launch
of Symphony due to uncertainty
in reimbursement policy. The
fluctuating nature of proposed
reimbursement policy across this
market segment has introduced
confusion and concerns around
reimbursement success and
predictability. This state of flux
means that health providers are
consequently opting not to
change their usage practices in
the meantime.
We understand that manufacturers
are likely to be required to provide
clinical data from Randomised
Controlled Trials (RCTs) from CY
2026 in order to be eligible for
reimbursement in certain case
types. Our Symphony RCT for
diabetic foot ulcers is now in
the final phases, and we expect
to be well placed to access
reimbursement from FY26.
We remain committed to
commercialising our second
platform, Enivo, which addresses
a large unmet clinical need in
soft tissue reconstruction and
complements our existing offerings.
The market opportunity for Enivo
is estimated to be in excess of
US $1 Billion.
We see an opportunity to advance
clinical practices by combining our
existing products with Enivo to
deliver a step change in outcomes
by improving the rate and quality of
healing and reducing complications.
We are working through US
Federal Drug Administration (FDA)
requirements for further preclinical
and clinical studies and expect
these to be complete within the
next 36 months.
+ Leadership Team
To support AROA’s next phase
of growth, we have adjusted
our leadership structure, with
several key team members
transitioning into roles more closely
aligned with our medium term
strategic priorities.
Rod Stanley, who has a had a long
and diverse career with AROA,
has been appointed Chief
Operating Officer. In this role, he
will focus on driving operational
excellence and supporting the
delivery of commercially focused
strategic initiatives.
Yasmin Winchester, another
longstanding team member, has
been appointed to the role of
Chief of Technical Operations. In
this role, she will have expanded
responsibilities, including oversight
of Manufacturing and Operations
Engineering.
Isaac Mason has been appointed to
the role of Vice President - Product
Strategy, where he will focus on
shaping and accelerating the
development of new products and
product line extensions to capitalise
on key commercial opportunities.
These leadership changes ensure
that our senior team is focused
on the areas most critical to
driving momentum and delivering
commercial success.
+ FY26 Outlook
We have announced FY26
guidance2 - total revenue of
$92-100 million, representing
10-20% growth on constant
currency basis, and normalised
EBITDA1 of $5-8 million.
We will continue to focus on two
key areas: top line growth driven by
Myriad and increased profitability.
Top-line sales growth will be driven
by our focus on Myriad in lower limb
salvage and large complex wounds,
expanding within existing accounts
and improving sales productivity
We will also continue to carefully
manage our expenses with a
particular focus on maintaining
operating and development
expenses at similar levels to FY25 to
ensure that we are cashflow positive.
With a cash balance of $22 million,
we are well positioned to continue
executing our growth strategy.
+ Concluding remarks
We remain firmly focused on
continuing to build a sustainable,
high-growth business that
delivers transformative value to
patients, clinicians, hospitals and
shareholders, as we execute on
our mission to unlock regenerative
healing for everybody.
We sincerely thank our
shareholders for their continued
trust and support in our vision and
the strength of our business. Your
belief and support underpins our
ongoing success.
Brian Ward
Founder, Managing Director
and CEO
Backed by compelling
clinical evidence, AROA
delivers world-leading
outcomes in functional
tissue regeneration,
even in the most
complex patients.
WORLD-LEADING OUTCOMES
Annual Report 2025
BOARD OF
DIRECTORS
James McLean
James (Jim) is a resident of New
Zealand. He has over 25 years’
experience serving as chair,
director, or an executive of research
and technology businesses for
both commercial and New Zealand
Government organisations. In
addition to AROA, Jim is also Chair
of Prevar Limited.
He was Chair of the New Zealand
Institute of Plant & Food Research
and Chair of its predecessor
HortResearch, as well as several
private businesses and start-up
companies. He served on the
board of the then Foundation for
Research, Science, and Technology,
including five years as Deputy
Chair. Jim was an executive and
director of Genesis Research &
Development Corporation Limited
during its early stages through to
public listing.
Before specialising in science
and technology businesses, Jim
held management positions with
an international manufacturing
business and spent thirteen
years as a partner at chartered
accountants, EY. His time at EY was
focused on business strategy and
included two years’ secondment to
EY’s Washington DC office.
Jim has a BSc (Hons) in Chemistry
from University of Otago and
a Post Graduate Diploma in
Accounting from Victoria University
of Wellington.
BOARD RESPONSIBILITIES
Chairman and independent
non-executive director
and member of the Audit
Committee.
TERM OF OFFICE
First appointed
10 August 2011.
Last re-elected
10 August 2022.
Brian Ward
Brian is the founder of AROA
and a resident of New Zealand.
He has held senior corporate
roles in life sciences and health
care companies for more than
25 years. He has extensive
management experience in life
science companies spanning
clinical, technical, sales, marketing,
corporate development and
strategy having worked for a
number of multinationals including
Baxter, Beecham and SmithKline
Beecham throughout the world. He
has managed investments into New
Zealand technology companies
for the Foundation for Research
Science and Technology, served as
the founding CEO of NZBio, and
has sat on a number of government
and industry expert panels.
Brian has been responsible for
leading AROA’s growth from
start-up through to the present.
As CEO and a substantial
shareholder in the Company, he is
considered by the Board to not be
an independent director.
Brian is a graduate of Massey
University with a Bachelor’s degree
in Veterinary Science, a Member
of the Royal College of Veterinary
Surgeons (UK) and holds a Masters
degree in Business Administration
graduating with distinction.
BOARD RESPONSIBILITIES
Managing Director
(and CEO).
TERM OF OFFICE
First appointed
21 September 2007.
17
John Diddams
John is a resident of Australia and
has over forty years’ experience
as a CFO, CEO and director of
both private and publicly listed
companies. John is currently the
non-executive Chairman of xReality
Group Limited (ASX: XRG) and is a
non-executive director of Surf Lakes
Global Inc. and DIT AgTech Limited.
John has extensive knowledge
and experience in the practical
application of ASX Listing Rules,
Australian corporations’ law,
international accounting standards
and corporate governance
principles. He heads a CPA firm
providing corporate advisory
services to SME and mid-cap
companies and has managed
the listing process, secondary
capital raisings and ASX listings
in a number of diverse industry
sectors, including oil and gas, food
and retail, telecommunications,
adventure tourism, biotechnology,
and the dental and medical sectors.
John holds a Bachelor of
Commerce from University of
NSW, is a Fellow of the Australian
Society of CPAs and a Fellow of
the Australian Institute of
Company Directors.
BOARD RESPONSIBILITIES
Independent non-executive
director, Chair of the Audit
Committee and member
of the Remuneration
Committee.
TERM OF OFFICE
First appointed
21 November 2019.
Last re-elected
3 August 2023.
Darla Hutton
Darla is a resident of the US
and has been a director of Aroa
Biosurgery since March 2024.
She has more than 25 years of
medical technology experience,
including global leadership
expertise in commercial strategy,
operations, sales, marketing,
healthcare analytics, lean and
enterprise consulting.
Darla is currently vice president,
Asia commercial operations and
marketing at Intuitive, pioneers in
the field of robotic-assisted surgery
and maker of the da Vinci surgical
and ION diagnostic robot systems.
Throughout her tenure at Intuitive,
Darla has held commercial roles
of increasing responsibility
including Regional Sales Director,
Vice President of Corporate
Accounts-US, and Vice President
Marketing, Market Access &
Custom Hospital Analytics. In these
roles, she has contributed to the
expansion of Intuitive’s commercial
operations capabilities and range
of global offerings. In addition,
Darla has served as a member of
Intuitive’s Inclusion and Diversity
Executive Council.
Prior to Intuitive, Darla held
commercial positions at other
successful medical technology,
pharmaceutical, and biotech
companies, including Boston
Scientific and GlaxoSmithKline, and
spent her early professional career
in the cardiac-thoracic nursing field.
Darla holds a Bachelor of Science
and Master of Science.
BOARD RESPONSIBILITIES
Independent non-executive
director and member of the
Risk Committee.
TERM OF OFFICE
First appointed
22 March 2024.
Elected
23 July 2024.
Annual Report 2025
Philip McCaw
Philip (Phil) McCaw is a resident
of New Zealand and is the
Founding Partner of Movac, one
of New Zealand’s leading Venture
Capital funds. He led the original
investment round into AROA in
2008, has worked closely with the
Company and has served on the
Board since then. He is currently
the Executive Chair and CEO of
Docuvera, a software company
that delivers component authoring
solutions, enabled by AI, for the
largest global pharmaceutical
companies. He was also Chair
of the 2023 New Zealand
Government’s Start Up Advisors
Council, established to help identify
and address the opportunities
and challenges facing high growth
start-up businesses.
Phil has over 20 years’ experience
investing into New Zealand
technology companies and helping
to guide their growth. He was an
early investor in Trade Me, New
Zealand’s leading on-line trading
community, which was sold to
Fairfax in 2006. Phil was also an
early investor into PowerByProxi, a
wireless power technology spin-out
from Auckland University, which
was sold to Apple in 2018.
Outside of Movac, Phil remains an
active angel investor and maintains
a personal angel investment
portfolio. He is a strong advocate
for the development of the
entrepreneurial and early-stage
investment eco-system in New
Zealand and was the past Chair
of the Angel Association of New
Zealand.
Prior to starting Movac, Phil spent
10 years with Deloitte Consulting
working in New Zealand and the US.
As a substantial shareholder in
AROA, Phil is considered by the
Board to not be an independent
director.
Phil has a Bachelor of Business
Studies (Senior Scholar) from
Massey University.
BOARD RESPONSIBILITIES
Non-executive director
and member of the
Remuneration Committee
TERM OF OFFICE
First appointed
5 March 2008.
Last re-elected
23 July 2024.
Dr. Catherine Mohr
Catherine is a New Zealand citizen
and resident of the US. She has
over 30 years’ experience across
a diverse range of fields, including
engineering, healthcare, alternative
energy, aerospace and global
entrepreneurship.
Her expertise spans many areas
related to AROA’s next stage
of growth, including medtech
product research and development,
FDA approvals, product
commercialisation and surgery
technology innovation.
She has been President of the
Intuitive Foundation since 2018.
Prior to leading the Foundation,
Catherine held senior roles at
Intuitive Surgical, including
Vice President of Strategy and
Director of Medical Research.
Intuitive Surgical is a pioneer in the
robotic-assisted surgery field and
developed the da Vinci surgical
robotic system which is used in
millions of surgical procedures
across the globe every year.
Catherine is also on the board of
directors for FINCA International
and cofounded VeriSure, where
she invented the LapCap™, the first
of a new category of laparoscopic
surgery enabling products.
Catherine holds a Bachelor of
Science and Master of Science
in Mechanical Engineering
from Massachusetts Institute of
Technology (MIT) and Doctor
of Medicine from the Stanford
University School of Medicine.
BOARD RESPONSIBILITIES
Independent non-executive
director, Chair of the
Remuneration Committee
and member of the Risk
Commettee since 1 April 2024.
TERM OF OFFICE
First appointed
1 November 2022.
Last re-elected
3 August 2023.
19
John Pinion
John is a resident of the US. He has
over 30 years of global experience
leading biologic, small molecule
pharmaceutical, gene therapy and
device operations across Asia,
Europe and the Americas. His
expertise and leadership spans
engineering, quality, manufacturing
and translational sciences. He
joined Ultragenyx in July 2015
and currently holds the role
of EVP, Translational Sciences
and Chief Quality Operations
Officer. He provides leadership
for Ultragenyx’s translational
sciences functions which includes
Pharmacology and Toxicology,
Research and Bioanalytical
Development, as well as GxP
Quality and Compliance and CMC
Analytical QC.
As a key member of Ultragenyx’s
executive leadership team
reporting directly to the CEO,
he also contributes to ongoing
business development, clinical
development, commercial and
strategic planning activities.
In addition to his position at
Ultragenyx, John is currently
COO of Amlogenyx, a subsidiary
of Ultragenyx dedicated to the
development of novel gene
therapies using lysosomal
enzymes to treat amyloidosis,
like Alzheimer’s disease.
John is also an advisory board
member for Celestial Therapeutics,
Inc., a biopharmaceutical company
focused on the development
and commercialisation of
next-generation novel and ground-
breaking mRNA vaccines and
therapeutics for the treatment and
prevention of a variety of infectious
diseases, rare diseases and cancers.
John has previously held
operational and senior leadership
roles in Genentech (subsequently
Roche post Genentech acquisition),
as Senior Vice President and Global
Head of Quality and Compliance
for Pharma Technical Operations)
and Baxter International’s Renal,
Bioscience, Parenterals and Device
divisions.
He holds a B.S. in Mechanical
Engineering from West Virginia
University.
BOARD RESPONSIBILITIES
Independent non-executive
director, Chair of the Risk
Committee and member of
the Audit Committee.
TERM OF OFFICE
First appointed
1 February 2015.
Last re-elected
23 July 2024.
Annual Report 2025
James Agnew
Chief Financial Officer and Joint
Company Secretary
James joined AROA’s management
team in 2013 and has over 20 years’
experience in business and finance.
He has extensive experience in
corporate finance, investment
management, M&A, strategic and
operational planning, contractual
management and negotiation,
international taxation and
compliance, including US GAAP.
In 2011, James was a finalist in the
Young Financial Manager of the
year at the Annual CFO Awards.
Prior to this role, he was the VP
of Finance & Operations for MXM
Mobile (a division of the Meredith
Corporation) based in New
York, overseeing all international
subsidiaries following the
acquisition of The Hyperfactory
Ltd (NZ high growth technology
company) where he held the role
of Group Financial Controller. In
his earlier career, James worked
in public practice providing
accounting and business advisory
services to a diverse range of
successful New Zealand companies.
James holds a Bachelor of Laws
and Bachelor of Commerce from
The University of Auckland.
EXECUTIVE
LEADERSHIP
TEAM
Brian Ward
Chief Executive Officer,
Founder and Managing Director
Brian is the founder of AROA
and a resident of New Zealand.
He has held senior corporate
roles in life sciences and health
care companies for more than
25 years. He has extensive
management experience in life
science companies spanning
clinical, technical, sales, marketing,
corporate development and
strategy having worked for a
number of multinationals including
Baxter, Beecham and SmithKline
Beecham throughout the world. He
has managed investments into New
Zealand technology companies
for the Foundation for Research
Science and Technology, served as
the founding CEO of NZBio, and
has sat on a number of government
and industry expert panels.
Brian has been responsible for
leading AROA’s growth from
start-up through to the present.
Brian is a graduate of Massey
University with a Bachelor’s degree
in Veterinary Science, a Member
of the Royal College of Veterinary
Surgeons (UK), and holds a Masters
degree in Business Administration
graduating with distinction.
21
Dr. Barnaby May
Chief Scientific Officer
Dr. Barnaby May joined AROA
in 2008 and currently serves as
Chief Scientific Officer, where he
leads the company’s scientific
and clinical research initiatives,
driving innovation in regenerative
medicine and soft tissue repair. Dr.
May has played a pivotal role in
the development and validation of
AROA’s proprietary extracellular
matrix (ECM) technology.
Since joining AROA in its
early stages, Dr. May has been
instrumental in advancing the
company’s product pipeline
from concept through to
commercialisation. He currently
oversees scientific strategy, clinical
affairs, and collaborative research,
ensuring alignment between
scientific rigor and commercial
application.
Dr. May holds a PhD in Medicinal
Chemistry, with a research
background in drug discovery
and design, neurodegenerative
and tropical diseases, as well as
wound healing and soft tissue
regeneration. Prior to AROA, he
held academic roles at University
of California San Francisco. Dr.
May has numerous peer-reviewed
publications and patents.
Yasmin Winchester
Chief of Technical Operations
Yasmin joined AROA in 2014
and has held several roles since
then. Her role covers a wide
scope, overseeing manufacturing
operations, quality assurance,
regulatory affairs, and health
and safety.
Yasmin is also responsible for
developing and implementing
AROA’s sustainability approach
to achieve long-term stability and
sustainability of our operations,
while continuing to deliver medical
devices that are safe and effective
for use.
Before joining the AROA team,
Yasmin held roles in Quality
Assurance at Glaxo Smith Kline and
Johnson & Johnson Medical.
Yasmin holds a Bachelor of Science
with a major in Biology from The
University of Waikato.
Rod Stanley
Chief Operating Officer
Rod joined AROA in 2013 and has
over 15 years’ experience in medical
device design and manufacturing.
Rod is responsible for driving
operational excellence and
supporting the delivery of
commercially focused strategic
initiatives.
Prior to joining AROA, Rod worked
in development of novel polymer
coatings for microfluidic devices
at Industrial Research Limited.
Rod’s professional expertise
includes chemical processing of
biomaterials, and implementation
of sterilisation processes.
During his time at AROA, Rod’s
focus has been on process design
and transfer into manufacturing,
redevelopment and scale-up
activities for the Auckland site,
as well as overseeing routine
production activities.
Rod holds Master of Science
and Bachelor of Science degrees
in Chemistry from the University
of Otago.
Annual Report 2025
At AROA, we are committed to fostering a diverse and inclusive culture
across all levels of the Company and continue to focus on actions that
support this.
Gender diversity
AROA is committed to reaching
40:40:20 gender representation
(40% women, 40% men and 20%
open) by 2033. We continue to
work steadily towards our other
gender diversity goals:
• A minimum of 30% gender
diversity at senior leadership
level by the end of FY26
+ Diversity, Equity, and Inclusion
• 20% gender diversity at Board
level by the end of FY27
• A minimum of 40% gender
diversity at manager and
supervisor level by the end
of FY27
AROA is a proud member
of Diversity Works, New
Zealand’s national body
for workplace diversity
and inclusion.
SUSTAINABILITY
REPORT
We continue developing our
sustainability dashboard, which
we intend to use to measure key
sustainability metrics, including
waste to landfill, water usage,
+ Environmental Sustainability
wastewater, electricity usage, and
freight carbon emissions.
We continue to collect and
analyse data, which will allow
us to benchmark and create
realistic and measurable emission
reduction targets, supporting our
commitment to environmental
sustainability.
We are pleased to present AROA’s sustainability report for 2025.
Throughout FY25, we have continued embedding sustainable business
practices into the Company.
At AROA, we understand the
importance of contributing
to a more sustainable future
for everybody.
23
The table below shows the ratio of women to men among our Board members, senior leadership, supervisors and
managers, and all employees as at 31 March 2025 across New Zealand and North America.
Women
Men
Women %
Men %
No data %
Board
2
5
29%
71%
Senior leadership
3
9
25%
75%
Supervisors and managers
20
34
37%
63%
All employees
130
119
52%
47%
1%
Employees in
New Zealand
Employees in
North America
163
Women in Senior
Leadership Roles
25%
Women in our
Employee Population
52%
Ethnicities Self-identified
by Employees
20+
251
EMPLOYEES
88
Celebrating diversity
The AROA Women’s Network is an
employee led committee working
to foster diversity and inclusion
through regular events and forums.
Employee led celebration events
held throughout the year continue
to be a popular highlight and are
well attended. These events help to
foster diversity and inclusion and
increase awareness.
Annual Report 2025
We remain committed to being a great place to work, and in FY25 we added three new offerings to our existing
range of employee benefits.
We continue to review employee benefits and look forward to continuing to add to the existing offering.
+ People and Culture
Parental Leave Policy
During FY25, we launched parental
leave policies in both New Zealand
and the US. These policies were
designed to provide financial
support and flexibility to new
parents through this important life
stage, enabling them to focus on
their families.
Wellbeing allowance
In line with our commitment to
health, safety and wellbeing,
in FY25 we partnered with
Extraordinary—a digital wallet,
which provides access to health
and wellbeing services.
An allowance is loaded on to digital
cards, providing access to services
Employee
Referral
Programme
Birthday
Leave
Employee
Assistance
Programme
(EAP)
Onsite
Gym and
Facilitated
Classes
Remote
Working
and Flexible
Working*
Work Ride
Scheme
*For eligible roles
that support both professional and
personal wellbeing. By investing in
our team’s health, we’re building
a safer, stronger, and more
supportive workplace.
WorkRide
In February 2025, AROA joined the
WorkRide scheme. The scheme
offers permanent employees the
opportunity to obtain a scooter or
e-bike for commuting to work, by
exchanging part of their pre-tax
salary for a benefit of their choice
from any participating store, at no
upfront cost.
Health and Safety
We continue to focus on health
and safety, instilling best
practice and a sense of collective
ownership. The focus for FY25 has
been on increasing capability, and
training sessions on fire safety, first
aid and evacuation procedures
have been conducted.
During FY25, our traffic
management plan was enhanced
to support safe pedestrian access
between our two Auckland
manufacturing sites.
Internship Programme
Since 2022, AROA has run a
formal 10-week internship
programme each year. To date,
30 students have participated in
the programme.
25
KidzFirst Christmas Party
The Middlemore Foundation and
BBM Foundation team up each year
to give the families South Auckland
children living with long-term health
conditions a day of celebration
with entertainment, gifts, and fun.
AROA is proud to be a foundational
supporter of this key community
event, contributing a $10,000
donation as well as team members
volunteering at the event.
Fostering Interest in STEM careers
At AROA, we are proud to support
organisations fostering interest
in science, technology, and
Engineering (STEM) careers.
+ Community
We support two purpose led
organisations focused on
encouraging interest in STEM
careers - The Wonder Project,
and Robogals.
Robogals
Robogals is a global, student run
organisation that aims to inspire
and empower young women to
consider studying engineering and
related fields by hosting events and
workshops. AROA is proud to be a
gold sponsor of Robogals.
The Wonder Project
The Wonder Project is Engineering
New Zealand’s not-for-profit, free
school’s programme, designed
to inspire young people about
STEM, through hands on learning
experiences. AROA is proud to
be a silver sponsor of The
Wonder Project.
Rocket Challenge
The Wonder Project Rocket
Challenge involves STEM
professionals partnering with local
schools, helping students design
their very own water rocket.
Throughout FY25, AROA team
members participated in and ran
Rocket Challenges in conjunction
with the Wonder Project.
“The Wonder Project can spark
wonder not just in the children, but
re-spark the wonder in us, too.”
Jessica Chen,
Engineer and Wonder Project Ambassador
Designed for widespread
impact, AROA’s products
are versatile, accessible,
and simple to use.
Unlocking regenerative
healing for everybody.
WIDESPREAD IMPACT
Annual Report 2025
31/3/2025
$000
H2 FY2025
$000
H1 FY2025
$000
31/3/2024
$000
Reported
YoY%
Product sales
83,977
44,885
39,092
67,966
24%
Other revenue
720
656
64
1,100
(35%)
Total revenue
84,697
45,541
39,156
69,066
23%
Cost of sales
(12,083)
(6,908)
(5,175)
(10,093)
20%
Gross profit
72,614
38,633
33,981
58,973
23%
Product gross margin %
86%
85%
87%
85%
100 bps
Other income
1,083
491
592
1,664
(35%)
Normalised selling and administrative expenses*
(64,889)
(31,727)
(33,162)
(58,968)
10%
Research and development
(9,566)
(4,202)
(5,364)
(9,159)
4%
Total normalised operating expenses
(74,455)
(35,929)
(38,526)
(68,127)
9%
Normalised EBIT
(758)
3,195
(3,953)
(7,490)
(90%)
Add back: depreciation & amortisation
4,943
2,498
2,445
4,395
12%
Normalised EBITDA
4,185
5,693
(1,508)
(3,095)
(235%)
Normalised net finance income*
875
437
438
1,390
(37%)
Normalised loss before income tax
117
3,632
(3,515)
(6,100)
(102%)
+ AROA’s activities and operations
AROA is in the business of soft tissue regeneration. During the year,
the Group’s principal activity was the development, manufacture and
distribution of products globally to improve the healing of complex
wounds, and soft tissue reconstruction.
Commentary on the Group’s operations and activities during the year is set
out in the Chair’s Review and CEO’s Report.
+ Financial results for the year
Normalised Profit or Loss
The Directors present their
report on the Group for
the financial year ended
31 March 2025.
DIRECTORS’
REPORT
*These items have been normalised by the amounts outlined within the section headed
‘Reconciliation of Normalised Profit or Loss to NZ GAAP Profit or Loss’.
29
Product Revenue
Product revenue for the year
was $84.7 million – an increase
of 24% on the previous year (21%
in constant currency). Myriad
performed strongly, resulting
in a 38% increase in sales to
$32.3 million (reflecting a 35%
increase on a constant currency
basis). AROA direct sales
accounted for 53% of the product
revenue mix. Myriad is expected to
continue growing as a proportion
of the overall sales mix.
OviTex/OviTex PRS contributed
$39.7 million to total product sales,
which is a 22% increase from FY24
(a 19% increase on a constant
currency basis). OviTex PRS sales
included an initial stocking order
for the new large format device
launched by TELA Bio in April
2025. Sales of Endoform and
Symphony were largely in line
with FY24, with product sales
of $11.7 million and $0.3 million
respectively.
Other Revenue
Other revenue for the year was
$0.7 million, which was slightly
down from $1.1 million in FY24.
This was due to a decrease in fees
received for product development
projects undertaken with TELA Bio.
Product Gross Margin %
Full-year product gross margin
increased by 1% to 86%, despite
inflationary increases to wages
and materials. This increase was
primarily due to the high-margin
Myriad products making up a larger
proportion of the overall sales
mix, and ongoing manufacturing
efficiency improvements.
Other Income
Other income was $1.1 million
(compared to $1.7 million in FY24).
This comprised of tax credits of
$0.9 million under the Research
& Development Tax Incentive
program (compared to $1.6 million
in FY24), rental and grant income.
Normalised Operating Expenses
& EBITDA
Selling and administrative expenses
were $64.9 million, which was a
10% increase from $59.0 million
in FY24. This primarily reflects
the annualisation of salaries
and operating expenses for the
additional US sales staff taken on in
FY24, and an increase in aggregate
commission payments to US sales
staff for increased Myriad sales.
Research and development
expenses were $9.6 million, which
was a slight increase on $9.2 million
in FY24.
These expenses covered product
line extensions for the Myriad and
Ovitex portfolios, and continued
investment in the Enivo™
technology, which the Company
has identified as having a total
addressable market in excess of
US$1 billion.
The Company generated a
normalised EBITDA profit of $4.2
million in FY25 (compared to a
$3.1 million loss in FY24). The
normalised gain before income tax
was $0.1 million (NZ GAAP loss
before income tax of $3.3 million)
compared to a loss of $6.1 million
in FY24 (NZ GAAP loss before
income tax of $10.4 million).
Cashflows
On a full-year basis, net cash
outflows from operating activities
were $2.6 million (compared to
outflows of $7.4 million in FY24).
The Company achieved positive
net cash inflows from operations
of $2.3 million in the H2 FY25,
reflecting the strong normalised
EBITDA profit achieved during
the period.
Cash outflows from investing
activities (excluding movements
in term deposits) were $3.7 million
(compared to outflows of $6.9
million in FY24). Purchases of
property, plant and equipment
decreased from $3.5 million in
FY24 to $2.3 million in FY25, of
which the majority of the FY25
spend ($1.8 million) was investment
into additional manufacturing
capacity. Capitalised development
costs decreased from $2.8 million
in FY24 to $1.1 million in FY25.
The Company achieved positive
total cash flow for H2 FY25, ending
FY25 with a strong cash balance of
$22.0 million (compared to $29.5
million at the end of FY24). The
Company remains debt-free.
Annual Report 2025
Reconciliation to NZ GAAP profit or loss
Reported
2025
$000
Reported
2024
$000
Normalised loss before income tax
117
(6,100)
Share based payment expenses
(2,160)
(3,181)
Unrealised foreign currency (losses) / gains
(1,207)
(1,146)
Loss before income tax (NZ GAAP)
(3,250)
(10,427)
Share Based Payments
Share based payments is a non-cash expense that reflects the grant of
share options issued to employees between April 2021 and March 2025.
During FY25, $1,907,000 of employee share options previously recognised
as an expense in prior years were forfeited, with the corresponding amount
transferred to retained earnings.
+ Dividends
No dividends were paid, declared or recommended during the financial year.
+ Corporate Governance Statement
AROA recognises the importance of good corporate governance and is committed to ensuring that the business
maintains a high standard of corporate governance and ethical standards. The Board reviews the Company’s
policies and governance practices against the Principles of Good Corporate Governance established by the ASX
Corporate Governance Council annually. Please refer to AROA’s Corporate Governance Statement (available at
https://aroa.com/investors/) for more information about how the Company’s policies and practices align with
these principles.
+ Indemnification and insurance of directors and officers
The Company indemnifies each director for any liability and costs that the Companies Act 1993 permits directors
to be indemnified for. Specific liabilities are excluded (such as criminal liability). The Company has arranged
insurance cover for the indemnified liability and costs. The directors’ indemnities and insurance are authorised
under the Company’s constitution.
+ Director updates
John Pinion and Philip McCaw were re-elected as non-executive directors, and Darla Hutton was elected as a
non-executive director, at the Company’s annual general meeting on 23 July 2024.
In accordance with the Board’s rotation policy, James McLean is offering himself up for re-election at the
Company’s upcoming annual general meeting on 20 August 2025.
Unrealised FX gains
Unrealised FX gains are non-cash
(losses) or gains that reflect the
(loss) / gain on US$ denominated
transactions that have not been
completed as at the reporting date.
31
Name
Board of Directors
Audit Committee
Risk Committee
Remuneration
Committee*
Eligible
Attended
Eligible
Attended
Eligible
Attended
Eligible
Attended
James McLean
7
7
3
3
-
-
-
-
Brian Ward
7
7
-
3
-
1
-
3
Philip McCaw
7
6
-
-
-
-
3
3
John Pinion
7
7
3
3
2
2
-
-
John Diddams
7
7
3
3
-
-
3
3
Dr. Catherine Mohr
7
7
-
-
2
2
3
3
Darla Hutton
7
5
-
-
2
2
-
-
Description of services
Fees ($)
Review of interim consolidated financial statements
$68,000
+ Environmental and social risks
AROA’s manufacturing activities involve the controlled storage, use and disposal of hazardous materials. The
Company has policies and procedures designed to facilitate compliance with applicable environmental regulations
and to mitigate the risks associated with the Company’s handling of such materials.
+ Non-audit services
AROA’s auditor is BDO Auckland. The Group’s statutory audit fee for the financial year ended 31 March 2025 was
$167,000 (2024:$163,000).
During the year ended 31 March 2025, BDO Auckland, or entities associated to it, provided the following non-audit
services to the Group:
The Board is satisfied that the services noted above do not impair BDO’s independence as auditor on the basis
that such services were not in conflict with BDO’s audit procedures and adequate safeguards were put into place
to mitigate any independence risks.
+ Board and Committee meetings
The table below shows attendances by each director at Board and Committee meetings during the financial year.
*The Remuneration & Nomination Committee became the Remuneration Committee
during the period. The members remained the same.
Annual Report 2025
REMUNERATION
REPORT
+ Overview
AROA’s remuneration policies and
practices are ultimately designed
to deliver shareholder value by
facilitating and encouraging a high
level of performance, with our
long-term success in mind.
The Remuneration Committee*
supports the Board in formulating
and overseeing these policies,
with input from external
specialists as appropriate to
ensure impartial guidance and
expertise. Remuneration is
integral to building a high-growth
profitable business, and this is
reflected in AROA’s approach.
Our remuneration framework is
structured to be competitive within
the industry, encourage a high
level of performance, and align our
people’s interests with those of
our shareholders. This reinforces
AROA’s commitment to excellence
and achievement, and instils a
sense of ownership amongst
our people, fostering a culture
of decision-making focused on
generating shareholder returns.
This Remuneration
Report, which forms part
of the Directors’ Report,
outlines our approach
to remuneration for the
financial year ended
31 March 2025.
Our remuneration programme for
FY25 comprised of:
• A fixed wage or salary, and
legislative superannuation.
This is set at a level to attract
and retain high-calibre
employees and is reviewed
annually taking into account
individual, Company and
market conditions.
• A discretionary short-term
incentive (STI), providing the
potential for an annual cash
bonus based on pre-determined
Company and individual
performance targets. Our STI
plans are in place for those
at a senior management level
and above, along with critical
specialist roles.
• A discretionary long-term
incentive (LTI). In FY25, we
extended the range of equity
awards available to our staff
under our new Omnibus
Incentive Plan. We describe the
forms of equity and the plan in
more detail below.
*Previously the Remuneration &
Nomination Committee.
33
In accordance with best practice,
the structure of our non-executive
director remuneration is separate
and distinct from that of our CEO,
and employees.
The Remuneration Committee
is focused on ensuring that our
compensation policies keep pace
with the evolving recruitment
environment, market conditions
and our growing size and maturity.
The committee undertakes
remuneration benchmarking
exercises both formally, through
remuneration specialists, and
informally through partnerships
with recruitment agencies and
industry surveys.
Refining our approach to LTIs
In previous years, we operated two
LTI plans (the NZ Option Plan and
the US Option Plan), both of which
applied to staff and provided LTI
remuneration in the form of share
options only.
In FY25, the Company established
a new Omnibus Incentive Plan.
The plan allows for the granting of
a wide range of equity, including
performance share rights (PSRs),
restricted stock units (RSUs),
and share options. We describe
how the different types of equity
operate below.
The new plan gives the Company
the ability to tailor LTIs to different
types and tiers of staff, which will
be more effective for staff retention.
Share options: One share option
entitles the holder to subscribe
for one fully paid ordinary share in
the Company at a specific exercise
price (provided that the service and
performance-based conditions are
met). Share options are not quoted.
The share options on issue expire
over the next four years.
For details of share options on
issue, refer to page 85 of this report.
PSRs and RSUs: PSRs and RSUs
are similar in the sense that when
one PSR or RSU vests, they entitle
the holder to one ordinary share at
no cost. Also, both are issued for nil
consideration and are not quoted.
The key difference between them
is that RSUs are service-based
(each RSU vests on the employee
completing a pre-defined period
of employment) whereas PSRs are
service and performance based
(the employee must complete a
pre-defined period of employment
in order for any PSRs to vest, but
the number of PSRs that will vest
depends on the satisfaction of
performance targets within the
period). The PSRs and RSUs on
issue have vesting dates over the
next two years.
For details of PSRs and RSUs on
issue, refer to page 86 of this report.
Under the current LTI framework
approved by the Board, employees
are entitled to various packages of
equity depending on their seniority
and the nature of their role. Please
see the ‘Overview of Executive
Leadership remuneration’ section
below for more details about
the Executive Leadership Team’s
entitlements, and the performance
requirements that apply to the PSRs
that the team has been granted.
Annual Report 2025
+ Employee remuneration
This table shows the remuneration
totalling $100,000 or more
received by our employees or
former employees during the
financial year ended 31 March 2025.
The table includes salary, wages
and discretionary annual variable
remuneration paid during the
year. The table does not include
information for our CEO, who is
also a director of the Company.
Offshore remuneration amounts
(including commission paid to
US sales representatives for
delivering increased Myriad sales)
have been converted into New
Zealand dollars.
For completeness, an interest-
free term loan was previously
extended to staff who had an
interest in shares issued under a
legacy employee incentive share
plan. The facility is due to expire
on 28 February 2026. As at 31
March 2025, the loan balance was
$115,000 and interest was charged
at 6% p.a.
Remuneration range ($)
Number of employees
100,000
to
110,000
16
110,001
to
120,000
8
120,001
to
130,000
14
130,001
to
140,000
8
140,001
to
150,000
8
150,001
to
160,000
7
160,001
to
170,000
5
170,001
to
180,000
3
180,001
to
190,000
6
190,001
to
200,000
3
200,001
to
210,000
3
210,001
to
220,000
2
220,001
to
230,000
4
230,001
to
240,000
2
240,001
to
250,000
3
250,001
to
260,000
1
260,001
to
270,000
7
270,001
to
280,000
1
280,001
to
290,000
4
290,001
to
300,000
4
300,001
to
310,000
1
310,001
to
320,000
2
320,001
to
330,000
4
330,001
to
340,000
2
340,001
to
350,000
3
350,001
to
360,000
2
360,001
to
370,000
1
370,001
to
380,000
2
380,001
to
390,000
3
390,001
to
400,000
2
400,001
to
410,000
1
410,001
to
420,000
1
420,001
to
430,000
1
430,001
to
440,000
1
440,001
to
450,000
2
490,001
to
500,000
1
500,001
to
510,000
1
520,001
to
530,000
1
580,001
to
590,000
1
590,001
to
600,000
1
610,001
to
620,000
1
630,001
to
640,000
3
650,001
to
660,000
1
660,001
to
670,000
2
680,001
to
690,000
1
710,001
to
720,000
1
760,001
to
770,000
1
800,001
to
810,000
1
900,001
to
910,000
1
35
+ Overview of Executive Leadership Team remuneration
Please refer to the table below for an overview of the remuneration components provided to our Executive
Leadership Team in FY25.
Component
Description
Link to strategy &
performance
Fixed remuneration
• Base salary
• Legislative superannuation
Base salary reviews
take into account
individual factors such
as performance and
behaviours, Company
performance, market
benchmarks, and the
scope of the role.
STI
• At-risk component paid in cash.
• Calculated to reflect the extent that:
• the Company met its performance objectives; and
• the individual met their performance targets (which are
aligned to the Company’s performance objectives)
• Company performance objectives comprise financial targets,
and non-financial targets including sales, development, clinical
and people metrics
• Company performance objectives are set at the beginning of
each financial year and are approved by the Board
• Performance against objectives is reviewed by the
Remuneration Committee, and determined by the Board at
the end of each financial year
Rewards delivery of
key strategic and
financial objectives in
line with AROA’s annual
business plan.
LTI
• At-risk component awarded in PSRs.
• Designed to align the interests of Executive Leadership Team
members with shareholder interests over the longer term
• Unless the Board determines otherwise, vesting is subject to
completing a pre-determined period of employment. This
provides a longer-term employee benefit
• PSRs are service and performance based. The performance
conditions for PSRs are detailed on the next page.
Rewards delivery against
longer term strategy
and provides alignment
between shareholder
and executive leadership
outcomes.
Annual Report 2025
Performance conditions for PSRs
This table shows the performance
conditions that apply to the
PSRs granted to the Executive
Leadership Team. The vesting date
for these PSRs is in March 2027.
Criteria*
Weighting
Targets
Vesting scale
Relative
TSR**
33%
75th percentile
100%
50th percentile
50%
<50th percentile
0%
3-year
Revenue
CAGR***
33%
30% (i.e. FY27 constant currency
revenue of $157m)
100%
25% (i.e. FY27 constant currency
revenue of $134m)
67%
20% (i.e. FY27 constant currency
revenue of $120m)
33%
<20% (i.e. FY27 constant
currency revenue < $120m)
0%
3-year
EBITDA%****
33%
20%
100%
17%
67%
14%
33%
<14%
0%
*The Board reserves the right to adjust performance conditions or vesting outcomes to
ensure that the equity award recipient is neither penalised nor provided with a windfall
benefit arising from matters outside their control.
**TSR Ranking: how the Company ranks against a comparator group comprised of the
top 50 (by market capitalization) ASX-listed healthcare companies for total shareholder
return.
***3-year revenue CAGR assumes a constant currency of US$0.61, which was the average
exchange rate during FY24.
****EBITDA reflects the accounting EBITDA (on a non-adjusted basis).
Performance conditions
for share options
This table shows the performance
conditions that apply to the share
options on issue to the Executive
Leadership Team. These options
are due to vest in March 2026.
Considering performance against
these metrics, all share options
scheduled for vesting on 31 March
2025 will be forfeited. This includes
the 1,224,260 share options held by
the Executive Leadership Team.
Performance Conditions*
Total % of options
eligible to vest
Entry
50+ percentile TSR Ranking
25%
Target
75+ percentile TSR Ranking
50%
Stretch
75+ percentile TSR Ranking plus
threshold 20-day VWAP as at the
applicable vesting date. These are as
follows:
• 31 March 2025 vesting, A$1.85
(162% growth on 31 March 2022
20-day VWAP)
• 31 March 2026 vesting, A$2.25
(219% growth on 31 March 2022
20-day VWAP)
100%
*The Board reserves the right to adjust performance conditions or vesting outcomes to
ensure that the equity award recipient is neither penalised nor provided with a windfall
benefit arising from matters outside their control.
37
+ Overview of CEO remuneration
Brian Ward’s remuneration
structure is consistent with the
Executive Leadership Team
remuneration structure outlined on
page 35. His remuneration target
and maximum total remuneration
mix for the 2025 financial year is
set out below.
In accordance with the
requirements of ASX Listing
Rule 10.14, Brian was issued with
961,255 PSRs (which have a vesting
date of 1 August 2027) following
shareholder approval received at
our 2024 annual general meeting.
Please refer to the remainder
of this report for further details.
Brian does not receive additional
remuneration in his capacity as a
director of the Company or any
other Group company.
+ Overview of non-executive director remuneration
Our non-executive directors receive cash fees, and until FY24, were also granted equity in the form of share
options. Please refer to the remainder of this report for further details. To maintain objectivity in decision-making,
we do not offer our non-executive directors’ performance-based compensation.
As approved by shareholders, the maximum aggregate annual cash-based remuneration payable to all our
non-executive directors for their services as a director is $750,000. Individual director fees are based on the
time commitment and responsibilities of their role, with our Board and Committee Chairs receiving a higher
fee commensurate to their additional workload. Each non-executive director is entitled to be reimbursed for
all reasonable travel, accommodation and other expenses they incur for attending AROA meetings or on other
company business. We do not provide our non-executive directors with superannuation arrangements or
retirement allowances.
The Board sees value in promoting share ownership among our non-executive directors as it appropriately aligns
their interests with those of our shareholders.
Fixed Remuneration
STI
LTI
Fixed
Remuneration
Target Total
Remuneration
Maximum Total
Remuneration
$0
$200,000.00
$400,000.00
$600,000.00
$800,000.00
$1,000,000.00
$1,200,000.00
$1,400,000.00
Annual Report 2025
+ Director remuneration details
Aggregated
Our directors’ remuneration for the year ended 31 March 2025 is set out below.
Short term benefits
Post-employment
benefits
LTI
Cash salaries
and fees*
STI
Superannuation
Options**
PSRs
Shares
Total
James McLean
$135,000
-
-
$38,875
-
-
$173,875
Philip McCaw
$80,786
-
-
$25,917
-
-
$106,703
John Pinion
$139,793
-
-
$25,917
-
-
$165,710
John Diddams
$109,835
-
-
$25,917
-
-
$135,752
Dr. Catherine
Mohr
$139,793
-
-
$34,064
-
-
$173,857
Darla Hutton
$114,592
-
-
-
-
$60,000*****
$174,592
Brian Ward
$569,346
***$79,490
$18,869
$238,714****
$71,694
-
$978,113
TOTAL
$1,289,145
$79,490
$18,869
$389,404
$71,694
$60,000
$1,908,602
* Fees for directors who are not based in NZ are fixed in their local currency, and converted into
New Zealand dollars here for disclosure purposes.
** These amounts reflect the non-cash accounting cost of all share options held by the relevant
director during the financial year. It includes the cost of share options vesting during the financial
year and the cost of PSRs granted during the financial year as approved by shareholders. No cash
payments are made in relation to these. The amounts are calculated based on NZ IFRS 2 – Share-
based Payment.
*** Brian Ward achieved 35% against target for AROA’s FY25 performance. He had received
discretionary annual variable remuneration of $59,618 for AROA’s performance in the previous
financial year (representing 26% achievement against targets).
**** 591,768 performance-based share options granted to Brian Ward in FY23 did not reach their
31 March 2025 vesting conditions, so have been forfeited. These share options, with a share-based
expense of $117,525 in FY25, are therefore not included in this table. Share based remuneration
of $238,714 in FY25 includes an amount of $145,443 attributable to performance-based share
options and performance share rights due to vest on 31 March 2026 and 2027.
***** Darla Hutton was issued 140,110 ordinary shares on 22 August 2024. All shares were placed
in escrow. Half of the shares were released on 31 March 2025; the balance will be released on
31 March 2026.
Note: the table above does not include reimbursement of reasonable travel, accommodation and
other expenses incurred by directors for attending AROA meetings or on other company business.
Share-based compensation
No share options were granted to directors in FY25.
Please see the table below for details of the PSRs issued to our directors during the 2025 financial year. In
accordance with the requirements of ASX Listing Rule 10.14, the PSRs were issued following shareholder approval
at our 2024 annual general meeting.
Effective grant date
Number granted
Performance hurdle
(Y/N)
Exercise price per
option (A$)
Vesting date
Brian Ward
22 August 2024
961,255
Y
$nil
30 June 2027
39
+ Equity instrument disclosures
Options holdings
Please see below for an overview of the share options held by each director (or their nominee) during FY25.
Further details regarding options that vested or were forfeited during the year are contained in other sections of
this report.
Balance as at
1 April 2024
Granted as
compensation
Exercised
Forfeited
Balance at
the end
of FY25
Vested and
exercisable
Unvested
James McLean
311,329
-
-
-
311,329
227,999
83,330
Philip McCaw
254,545
-
-
-
254,545
198,991
55,554
John Pinion
1,051,620
-
-
-
1,051,620
996,066
55,554
John Diddams
193,072
-
-
-
193,072
137,518
55,554
Dr Catherine Mohr
210,686
-
-
-
210,686
148,570
62,116
Brian Ward
5,708,008
-
-
(625,842)
5,082,166
2,738,045
3,305,376
Darla Hutton*
-
-
-
-
-
-
-
TOTAL
8,034,730
-
-
(625,842)
7,103,418
4,447,189
2,656,229
* Darla Hutton joined the Board from 22 March 2024 and therefore does not hold any share options.
FY25 option vestings
The following shows the share options that were previously granted to the directors (or their nominees) that
vested in FY25.
Director
Financial year in which
granted
Number of
options vested
Exercise price (A$)
Option expiry
James McLean
FY23
86,056
1.083
29 Feb 2028
Philip McCaw
FY23
57,371
1.083
29 Feb 2028
John Pinion
FY23
57,371
1.083
29 Feb 2028
John Diddams
FY23
57,371
1.083
29 Feb 2028
Dr Catherine Mohr
FY24
64,311
0.87
13 Nov 2027
Brian Ward
FY23
319,671
1.165
13 Nov 2027
Darla Hutton
-
-
-
-
FY25 option forfeitures
591,768 share options issued to Brian Ward in FY23 did not meet their 31 March 2025 vesting conditions, so have
been forfeited (these options made up a portion of the 1,224,260 forfeited share options referred to earlier in this
section).
Annual Report 2025
Shareholdings
The number of ordinary shares in the Company held by each director or their related parties during the 2025
financial year is set out below.
Balance as at
1 April 2024
Received during the
year on exercise of
options
Purchases or, as
specified, other
additions
Balance at the
end of the year
James McLean*
2,827,108
-
-
2,827,108
Philip McCaw**
20,077,154
-
-
20,077,154
John Pinion
472,500
-
-
472,500
John Diddams***
1,192,550
-
-
1,192,550
Dr Catherine Mohr
-
-
436,364*****
436,364
Darla Hutton
-
-
140,110
140,110
Brian Ward****
33,125,800
-
-
33,125,800
*As a director of Mesynthes Nominee Limited, as at 31 March 2025 James McLean also had an interest
in 1,383,075 shares held by Mesynthes Nominee Limited on bare trust for certain AROA employees
until payment is received for such shares.
**Philip McCaw holds his interest through McSyth Capital Investment Trust, of which he is one of
three trustees and a beneficiary, and the Horizon Two Adventures Trust. Mr McCaw also has an
interest in shares held by the McSyth Charitable Foundation Trust, a registered charity of which he
is one of two trustees. As a director of Mesynthes Nominee Limited, as at 31 March 2025 Mr McCaw
also had an interest in 1,383,075 shares held by Mesynthes Nominee Limited on bare trust for certain
AROA employees until payment is received for such shares.
***This includes interests in shares held by John Diddams’ related parties; Whitfield Investments Pty
Ltd and Galdarn Pty Ltd.
****Brian Ward holds his interest through Arawai No. 2 Trust, of which he is one of three trustees and
a beneficiary.
*****Dr Catherine Mohr holds her interest through the Mohr Family Trust, of which Ms Mohr is a
beneficiary.
+ End of Remuneration Report
This Directors’ Report, incorporating the Remuneration Report, is signed in accordance with a resolution of
the Board.
James McLean
Independent Chair of the Board of Directors
Annual Report 2025
43
For the year ended 31 March 2025
The Directors are responsible for
the preparation, in accordance with
New Zealand law and generally
accepted accounting practice, of
financial statements which give a
true and fair view of the financial
position of the Group as at 31
March 2025 and the results of their
operations and cash flows for the
year ended 31 March 2025.
The Directors consider that
the consolidated financial
statements of the Group have
been prepared using accounting
policies appropriate to the Group’s
circumstances, consistently applied
and supported by reasonable and
prudent judgements and estimates
and that all applicable New Zealand
equivalents to International
Financial Reporting Standards have
been followed.
The Directors have responsibility
for ensuring that the proper
accounting records have been
kept which enable, with reasonable
accuracy, the determination of the
financial position of the Group and
enables them to ensure that the
financial statements comply with
the Financial Reporting Act 2013.
The Directors have responsibility
for the maintenance of a system
of internal control designed to
provide reasonable assurance as
to the integrity and reliability of
financial reporting. The Directors
consider that adequate steps
have been taken to safeguard
the assets of the Group and to
prevent and detect fraud and other
irregularities.
Approved for and on behalf of the
Board of Directors on 29 May 2025.
James McLean - Chairman
Brian Ward – CEO
The directors are pleased
to present the consolidated
financial statements of Aroa
Biosurgery Limited and the
Group (“Group”) for the year
ended 31 March 2025.
DIRECTORS’
RESPONSIBILITY
STATEMENT
AROA delivers
unmatched value by
reducing hospital
costs and driving
meaningful operational
improvements.
UNMATCHED VALUE
INDEPENDENT
AUDITOR’S
REPORT
Annual Report 2025
BDO Auckland
INDEPENDENT AUDITOR’S REPORT
TO THE SHAREHOLDERS OF AROA BIOSURGERY LIMITED
Opinion
We have audited the consolidated financial statements of Aroa Biosurgery Limited (“the Company”)
and its subsidiaries (together, “the Group”), which comprise the consolidated statement of
financial position as at 31 March 2025, and the consolidated statement of profit or loss and other
comprehensive income, consolidated statement of movements in equity and consolidated
statement of cash flows for the year then ended, and notes to the consolidated financial
statements, including material accounting policy information.
In our opinion, the accompanying consolidated financial statements present fairly, in all material
respects, the consolidated financial position of the Group as at 31 March 2025, and its consolidated
financial performance and its consolidated cash flows for the year then ended in accordance with
New Zealand equivalents to International Financial Reporting Standards (“NZ IFRS”) and IFRS®
Accounting Standards.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand)
(“ISAs (NZ)”). Our responsibilities under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We
are independent of the Group in accordance with Professional and Ethical Standard 1 International
Code of Ethics for Assurance Practitioners (including International Independence Standards) (New
Zealand) issued by the New Zealand Auditing and Assurance Standards Board, and we have fulfilled
our other ethical responsibilities in accordance with these requirements. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Other than in our capacity as auditor we have no relationship with, or interests in, the Company or
any of its subsidiaries.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance
in our audit of the consolidated financial statements of the current period. These matters were
addressed in the context of our audit of the consolidated financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
49
BDO Auckland
Recognition of revenue – TELA Bio revenue share
Key Audit Matter
How The Matter Was Addressed in Our Audit
The Group's largest customer is TELA Bio who is
the Group’s sales and distribution partner for
hernia and abdominal wall, and breast
reconstruction in North America and Europe.
The contract with TELA Bio entitles the Group
to an agreed percentage of TELA Bio’s net
sales. This revenue is considered to be variable
consideration (“revenue share”). The
consideration is variable since the quantum of
TELA Bio’s inventory that is sold and the price
that it is sold at, are uncertain.
The variable consideration recognised is
estimated by using the expected value method.
The estimation is based on information that is
reasonably available to the Group which
incorporates key factors including sales history,
forecast revenue growth, expiry dates of
inventory held, and average selling prices
achieved by TELA Bio. The amount of variable
consideration is only recorded by the Group to
the extent that it is highly probable that a
significant reversal in the amount of the
cumulative revenue recognised will not occur
when the uncertainty associated with the
variable consideration is subsequently
resolved. During the year ended 31 March
2025, Management changed their accounting
estimate for the TELA Bio revenue share by
revising the growth assumptions disclosed in
Note 2 Summary of material accounting
policies of the consolidated financial
statements.
We consider this to be a key audit matter
because of the judgement involved in
determining the variable consideration and the
quantum of the accrued revenue of $18.712m
as at 31 March 2025.
Details of the TELA Bio Revenue share are
disclosed in Note 2 Summary of material
accounting policies – change in accounting
estimates – TELA Bio accrued revenue, and
Note 3 Revenue and segment information of
the consolidated financial statements.
•
We evaluated Management’s revenue
recognition policy based on our
understanding of the contract with
TELA Bio and the requirements of NZ
IFRS15 - Revenue from Contracts with
Customers.
•
We obtained Management’s
calculations and accounting paper
prepared for the revenue share accrual
and evaluated the reasonableness of
key inputs and assumptions. The key
inputs included sales history, revenue
growth factors, expiry dates of
inventory held, and average selling
prices achieved by TELA Bio.
•
We obtained confirmation from TELA
Bio, confirming their stock holding,
sales history and the actual revenue
share for their sales made in the year
ended 31 March 2025.
•
We compared the key inputs and
assumptions with those used by
Management last year and considered
if these are indicative of Management
bias.
•
We considered if the amount of
variable consideration estimated is
only recorded by the Group to the
extent that it is highly probable that a
significant reversal in the amount of
the cumulative revenue recognised will
not occur.
•
We reviewed the disclosures in Notes 2
and 3 to the consolidated financial
statements, including the revenue
recognition policy, to the requirements
of the accounting standard.
Annual Report 2025
BDO Auckland
Intangible assets impairment assessment
Key Audit Matter
How The Matter Was Addressed in Our Audit
The Group has recognised goodwill, customer
relationships and reacquired rights intangible
assets on a historical acquisition. The goodwill
of $5.538m, customer relationships of $1.236m
and reacquired rights of $5.972m at 31 March
2025 are subject to an annual impairment test
in accordance with NZ IAS 36 - Impairment of
Assets.
Management performed their impairment test,
by considering the recoverable amount of the
Cash Generating Unit (‘CGU’) (to which the
intangible assets are allocated) using a value in
use calculation. This calculation is complex and
subject to key inputs and assumptions such as
discount rates and future cash flows, which
inherently include a degree of estimation
uncertainty and are prone to potential bias and
inconsistent application and therefore
considered to be a key audit matter.
Details of intangible assets are disclosed in
Note 12 Intangible assets of the consolidated
financial statements.
•
We obtained an understanding of key
controls relating to the review and
approval of the impairment review.
•
We obtained Management’s
impairment assessment including the
value in use calculation prepared for
the CGU. We evaluated and challenged
the key inputs and assumptions and
considered if these are indicative of
Management bias. The key inputs
included revenue growth rates,
terminal growth rate, gross margins
and discount rate.
•
We assessed the accuracy of previous
forecasts to actual performance to
form a view on the reliability of
Management's forecasting ability and to
understand key differences between
historical actual versus forecast
performance.
•
We engaged our internal valuation
experts to assess that the methodology
used is consistent with NZ IAS 36
Impairment of Assets, and to verify the
accuracy of the model, and to ensure
the discount rates and terminal growth
rates used, fell within an appropriate
range. We reviewed Management's
sensitivity analysis performed on key
inputs and assumptions to determine
the extent to which any changes would
affect the recoverable amount of the
CGU. We also considered and tested
alternative sensitivities.
•
We compared the carrying value of the
CGU to the recoverable amount
determined by the value in use
calculation to identify any impairment
losses.
•
We reviewed the disclosures in Note 12
to the consolidated financial
statements, including impairment and
sensitivity analysis, to the
requirements of the accounting
standard.
51
BDO Auckland
Share-based payment arrangements
Key Audit Matter
How The Matter Was Addressed in Our Audit
The Group issued share rights to an executive
director and senior management, under the
share-based payment arrangements during the
year ended 31 March 2025. The share-based
payment arrangements included both market
based and non-market based vesting
conditions. In determining the value of the
new arrangements, the Group used the services
of a third-party valuation specialist.
The Group also had existing share-based
payment arrangements that were exercised
and forfeited during the year.
There is judgement involved in determining the
value of share-based payment arrangements
and subsequent recording of the fair value as
an expense over the estimated vesting period.
As a result, and given the magnitude of the
expense in the current year, the audit of the
share-based payment arrangements was
considered a key audit matter.
The share-based payments expense recorded
for the year ended 31 March 2025 is $2.16m,
resulting in a share-based reserve of $10.487m.
Details of these share-based payment
arrangements are disclosed in Note 4 Loss from
operations before net financing income -
Employee share-based payment expenses and
Note 18 Share based payments reserve of the
consolidated financial statements.
•
We evaluated Management’s
assessment on the treatment of the
share-based payment arrangements in
accordance with NZ IFRS 2 – Share-
based Payment.
•
We agreed the terms of the share-
based payment arrangements issued
during the year to offer letters and
rules of the share-based payment
arrangement plan.
•
We assessed, in conjunction with our
internal valuation experts, the
appropriateness of the valuation
methodology used by Management's
specialist and the key input
assumptions such as volatility rates,
expected life and probability of
achieving the market-based
performance conditions.
•
We assessed the Group's judgements in
relation to the probability of achieving
non-market based vesting conditions.
•
We recalculated the share-based
payments expense recorded in the
profit or loss over the relevant vesting
periods.
•
We reviewed the disclosures in Note 4
and 18 in relation to the share-based
payment arrangements to the
requirements of the accounting
standard.
Other Information
The directors are responsible for the other information. The other information comprises the Aroa
Biosurgery FY25 Results and FY25 Outlook, Directors’ responsibility statement, and Appendix 4E –
ASX Listing Rule 4.2A (but does not include the consolidated financial statements and our auditor’s
report thereon), which we obtained prior to the date of this auditor’s report, and the Annual
report, which is expected to be made available to us after that date.
Our opinion on the consolidated financial statements does not cover the other information and we
do not and will not express any form of audit opinion or assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read
the other information identified above and, in doing so, consider whether the other information is
materially inconsistent with the consolidated financial statements, or our knowledge obtained in
the audit, or otherwise appears to be materially misstated.
Annual Report 2025
BDO Auckland
If, based on the work we have performed on the other information that we obtained prior to the
date of this auditor’s report, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
When we read the Annual report, if we conclude that there is a material misstatement therein, we
are required to communicate the matter to the directors.
Directors’ Responsibilities for the Consolidated Financial Statements
The directors are responsible on behalf of the Group for the preparation and fair presentation of
the consolidated financial statements in accordance with NZ IFRS and IFRS Accounting Standards,
and for such internal control as the directors determine is necessary to enable the preparation of
consolidated financial statements that are free from material misstatement, whether due to fraud
or error.
In preparing the consolidated financial statements, the directors are responsible on behalf of the
Group for assessing the Group’s ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless the
directors either intend to liquidate the Group or to cease operations, or have no realistic
alternative but to do so.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements as a whole are free from material misstatement, whether due to fraud or error, and to
issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance with ISAs (NZ) will always
detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to
influence the decisions of users taken on the basis of these consolidated financial statements.
A further description of our responsibilities for the audit of the financial statements is located at
the External Reporting Board’s website at: https://www.xrb.govt.nz/standards/assurance-
standards/auditors-responsibilities/audit-report-1-1/.
This description forms part of our auditor’s report.
Who we Report to
This report is made solely to the Company’s shareholders, as a body. Our audit work has been
undertaken so that we might state those matters which we are required to state to them in an
auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept
or assume responsibility to anyone other than the Company and the Company’s shareholders, as a
body, for our audit work, for this report or for the opinions we have formed.
The engagement partner on the audit resulting in this independent auditor’s report is Junita Sen.
BDO Auckland
Auckland
New Zealand
29 May 2025
For the year ended 31 March 2025
CONSOLIDATED
FINANCIAL
STATEMENTS
Annual Report 2025
Consolidated Statement of Profit or Loss and Other
Comprehensive Income
For the year ended 31 March 2025
The above consolidated statement of profit or loss and other comprehensive income should be
read in conjunction with the accompanying notes.
Note
2025
$000
2024
$000
Revenue
3
84,697
69,066
Cost of sales
(12,083)
(10,093)
Gross profit
72,614
58,973
Other income
3
1,083
1,664
Selling and administrative expenses
(67,049)
(62,149)
Research and development expenses
(9,566)
(9,159)
Loss from operations before net financing income and income tax
4
(2,918)
(10,671)
Finance income
5
1,363
2,002
Finance expenses
5
(1,695)
(1,758)
Loss before income tax
(3,250)
(10,427)
Income tax expense
6
(563)
(201)
Loss for the year attributable to shareholders
(3,813)
(10,628)
Other comprehensive income
Items that will or may be reclassified to profit or loss:
Exchange gain / (loss) arising on translation of foreign operations
335
836
Items that will not be reclassified to profit or loss:
Changes in the fair value of equity investments at fair value through other
comprehensive income
8
(545)
(557)
Total other comprehensive (loss) / income
(210)
279
Total comprehensive loss for the year attributable to shareholders
(4,023)
(10,349)
Earnings per share during the year:
Basic earnings per share (cents)
19
(1.11)
(3.09)
Diluted earnings per share (cents)
19
(1.11)
(3.09)
57
Note
2025
$000
2024
$000
Current assets
Cash and cash equivalents
7(a)
7,991
11,522
Term deposits
7(b)
14,000
18,000
Trade and other receivables
9
16,327
13,437
Inventories
10
8,270
8,104
Prepayments
2,405
1,816
Contract assets
3(a)
18,712
15,140
Tax receivable
312
313
Financial assets at fair value through other comprehensive income
8
158
703
Total current assets
68,175
69,035
Non-current assets
Property, plant, and equipment
11
16,171
15,769
Prepayments
82
104
Right of use assets
15
5,335
6,447
Intangible assets
12
19,109
19,702
Total non-current assets
40,697
42,022
Total assets
108,872
111,057
Current liabilities
Trade and other payables
13
3,437
3,741
Derivative liabilities
2,138
1,061
Employee benefits
14
3,609
3,708
Lease liabilities
16
1,119
1,004
Total current liabilities
10,303
9,514
Non-current liabilities
Provisions
187
174
Lease liabilities
16
5,297
6,431
Total non-current liabilities
5,484
6,605
Total liabilities
15,787
16,119
Net assets
93,085
94,938
Equity
Share capital
17
146,842
146,798
Accumulated losses
(64,058)
(62,152)
Foreign currency translation reserve
(344)
(679)
Fair value through other comprehensive income
8
158
703
Share based payment reserve
18
10,487
10,268
Total equity
93,085
94,938
Consolidated Statement of Financial Position
As at 31 March 2025
The above consolidated statement of
financial position should be read in
conjunction with the accompanying notes.
On behalf of the Board
29 May 2025
James McLean - Chairman
Brian Ward – CEO
Annual Report 2025
Note
Share
Capital
$000
Accumu-
lated
Losses
$000
Foreign
Currency
Transla-
tion
Reserve
$000
Fair Value
Through
Other
Compreh-
ensive
Income
$000
Share
Based
Payments
Reserve
$000
Total
Equity
$000
Balance as at 1 April 2024
146,798
(62,152)
(679)
703
10,268
94,938
Comprehensive income
Loss for the year
-
(3,813)
-
-
-
(3,813)
Other comprehensive income
for the year
-
-
335
(545)
-
(210)
Total comprehensive income
for the year
-
(3,813)
335
(545)
-
(4,023)
Transactions with shareholders
Share based payment transactions
18
-
-
-
-
2,638
2,638
Forfeiture of unvested employee
share options
18
-
-
-
-
(478)
(478)
Vested employee shares forfeited
through accumulated losses
18
-
1,907
-
-
(1,907)
-
Employee shares exercised
17/18
34
-
-
-
(34)
-
Repayment of employee loans for
acquisition of shares
17
10
-
-
-
-
10
Total transactions with shareholders
44
1,907
-
-
219
2,170
Balance as at 31 March 2025
146,842
(64,058)
(344)
158
10,487
93,085
Balance as at 1 April 2023
146,491
(51,524)
(1,515)
1,260
7,179
101,891
Comprehensive income
Loss for the year
-
(10,628)
-
-
-
(10,628)
Other comprehensive income
for the year
-
-
836
(557)
-
279
Total comprehensive income
for the year
-
(10,628)
836
(557)
-
(10,349)
Transactions with shareholders
Share based payment transactions
18
-
-
-
-
3,404
3,404
Forfeiture of unvested employee
share options
18
-
-
-
-
(223)
(223)
Employee shares exercised
17/18
196
-
-
-
(92)
104
Issue of shares to employees
17
111
-
-
-
-
111
Total transactions with shareholders
307
-
-
-
3,089
3,396
Balance as at 31 March 2024
146,798
(62,152)
(679)
703
10,268
94,938
Consolidated Statement of Movements In Equity
For the year ended 31 March 2025
The above consolidated statement of movements in equity should be read in
conjunction with the accompanying notes.
59
Consolidated Statement of Cash Flows
For the year ended 31 March 2025
The above consolidated statement of cash flows should be read
in conjunction with the accompanying notes.
Note: The Group has term deposits of $14,000,000 as at the reporting date (2024: $18,000,000). In line with NZ IAS 7 Statement of Cash Flows, term
deposits with an initial maturity of more than three months do not become part of cash and cash equivalent and are therefore excluded in the cash
and cash equivalent position in the statement of cash flows (refer to note 7).
Note
2025
$000
2024
$000
Cash flows from operating activities
Cash receipts from sales of goods
76,648
65,247
Cash receipts from grant income, project fees, and license fees
2,032
2,763
Cash paid to suppliers and employees
(82,194)
(76,831)
Interest received
1,511
1,726
Dividend received
-
1
Interest paid
(7)
(10)
Income tax paid
(556)
(271)
Net cash outflow from operating activities
24(a)
(2,566)
(7,375)
Cash flows from investing activities
Purchase of property, plant and equipment
11
(2,309)
(3,523)
Purchase of intangible assets
12
(317)
(644)
Capitalised development costs
12
(1,073)
(2,818)
Investment in term deposits
7b
(31,000)
(43,000)
Proceeds from term deposits
7b
35,000
60,134
Net cash inflow from investing activities
301
10,149
Cash flows from financing activities
Proceeds from issue of options
-
85
Proceeds from issue of shares
17
10
111
Lease liability – principal payments
16
(1,007)
(740)
Lease liability – interest payments
16
(476)
(490)
Net cash outflow from financing activities
(1,473)
(1,034)
Net (decrease)/ increase in cash and cash equivalents
(3,738)
1,740
Effect of exchange rate fluctuations on cash and cash equivalents
207
242
Cash and cash equivalents at beginning of year
11,522
9,540
Cash and cash equivalents at end of year
7(a)
7,991
11,522
Annual Report 2025
Notes to the Consolidated Financial Statements
For the year ended 31 March 2025
1.
Corporate Information
Aroa Biosurgery Limited (“the Company”) together with its subsidiaries (the “Group”) is a leading soft tissue
regeneration company which develops, manufactures and sells medical devices for wound and soft tissue
repair using its proprietary extracellular matrix (ECM) technology.
The Company is a limited liability company incorporated and domiciled in New Zealand. The address of its
registered office is 64 Richard Pearse Drive, Airport Oaks, Auckland.
The consolidated financial statements of Aroa Biosurgery Limited and its subsidiaries (the “Group”) for the
year ended 31 March 2025 comprise the Company and its two subsidiaries, Aroa Biosurgery Incorporated and
Mesynthes Nominee Limited. All subsidiary entities have a reporting date of 31 March.
Equity holding
Principal Activity
Place of
Business
2025
%
2024
%
Aroa Biosurgery Incorporated
Sales & Distribution
US
100
100
Mesynthes Nominee Limited
Nominee Shareholder
NZ
100
100
Aroa Biosurgery Incorporated is a subsidiary of Aroa Biosurgery Limited and is incorporated and domiciled
in the United States. The address of its registered office is 9155 Brown Deer Road #2, San Diego, California
92121. Mesynthes Nominee Limited is a subsidiary of Aroa Biosurgery Limited and is incorporated and
domiciled in New Zealand. The address of its registered office is 64 Richard Pearse Drive, Airport Oaks,
Auckland.
The consolidated financial statements have been prepared in accordance with the requirements of the
Financial Reporting Act 2013 and the Companies Act 1993. These consolidated financial statements were
authorised for issue by the Board of Directors on 29 May 2025.
2.
Summary of material accounting policies
Statement of compliance and basis of preparation
The consolidated financial statements have been prepared in accordance with New Zealand Generally
Accepted Accounting Practice (“NZ GAAP”). They comply with New Zealand equivalents to International
Financial Reporting Standards (“NZ IFRS”), other New Zealand accounting standards and authoritative
notices that are applicable to entities that apply NZ IFRS, as appropriate for Tier 1 profit orientated entities.
The consolidated financial statements also comply with IFRS® Accounting Standards (IFRS®).
Basis of measurement
The consolidated financial statements have been prepared on the historical cost basis, except for the
following items (refer to individual accounting policies for details):
–
Financial assets at fair value through other comprehensive income
–
Derivative assets at fair value through profit or loss
Functional and presentation currency
The consolidated financial statements are presented in New Zealand dollars ($) which is the Company’s
functional and Group’s presentation currency. All financial information is presented in New Zealand dollars
rounded to the nearest thousand, except where otherwise indicated.
Use of estimates and judgements
The preparation of the consolidated financial statements in conformity with NZ IFRS requires management
to make judgements, estimates and assumptions that affect the application of accounting policies and the
reported amounts of assets, liabilities, income and expenses. Actual results may differ from those estimates.
Significant estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimates are revised and in any future periods affected.
61
Estimates and judgements were made in respect of:
–
TELA Bio Incorporated (“TELA Bio”) accrued revenue (refer to notes 3) and “Change in accounting
estimates - Tela Bio Accrued Revenue”, as discussed below)
–
research and development tax incentive accrual (refer to note 3)
–
the likely term of leased premises, which impacts leasehold improvements assets and right of use assets
capitalised (refer to notes 11, 15 and 16)
–
impairment assessment of intangible assets (refer to note 12)
–
the value of development expenditure capitalised (refer to note 12)
–
the value of share-based payments (refer to note 18)
Change in accounting estimates - Tela Bio accrued revenue
As disclosed in note 3 (a), TELA Bio is the Group’s largest customer and sales and distribution partner for
abdominal wall reconstruction, hernia repair, and breast reconstruction in North America and Europe. The
contract with TELA Bio entitles the Group to an agreed percentage of TELA Bio’s net sales.
The consideration from TELA Bio is received from a transfer price for the products shipped to TELA Bio, with
the balance of the consideration received on a quarterly true up to the agreed percentage based on TELA
Bio’s net sales. Using the expected value method, the Group estimates the true up on TELA Bio’s inventory
at the reporting date considering the expected sale of those products by TELA Bio. In accordance with NZ
IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, the change in accounting estimate is
recognised prospectively by including it in profit or loss in the financial year ended 31 March 2025.
The key assumptions used in calculating the accrued revenue amount are as follows:
2025
2024
Revenue growth rate (Ovitex)
19%
24%
Revenue growth rate (Ovitex PRS)
37%
39%
The change in accounting estimates has resulted in a reduction of $116,000 in the accrued revenue in the
current year.
Going concern
The Group posted a net loss before tax of $3,250,000 for the year (2024: $10,427,000 loss). The Group
posted total operating cash outflow of $2,566,000 (2024: outflow of $7,375,000).
The Directors have continued to apply the going concern assumption as the basis of the preparation of the
consolidated financial statements.
In reaching their conclusion that the going concern assumption is appropriate, the Directors have considered
the ability to achieve financial performance and cash flow forecasts prepared by management, and the
sufficiency of the cash on hand as at the reporting date.
Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of the Group as
at the reporting date and the results of all subsidiaries for the year then ended.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are
deconsolidated from the date that control ceases.
Intercompany transactions and balances and unrealised gains on transactions between Group companies are
eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment
of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure
consistency with the policies adopted by the Group.
New standards, interpretations and amendments not yet effective
There are no new standards, amendments or interpretations that have been adopted or are not yet effective
that have a material impact on the Group except for the below standard:
–
Disclosure of fees for audit firm’s services (Amendments to FRS-44)
In May 2023 the NZASB issued amendments to FRS-44 to require a description of the services provided
by a reporting entity’s audit or review firm and to disclose the fees incurred by the entity for those service
using prescribed categories.
Annual Report 2025
This amendment had no effect on the measurement of any items in the consolidated financial statements of
the Group, and merely resulted in additional disclosures.
There are a number of standards, amendments to standards, and interpretations which have been issued by
the NZASB that are effective in future accounting periods that the Group has decided not to adopt early.
The following amendments are effective for the period beginning 1 January 2025:
–
Lack of Exchangeability – Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates
The following amendments are effective for the period beginning 1 January 2026:
–
Amendments to the Classification and Measurement of Financial Instruments – Amendments to NZ IFRS 9
Financial Instruments and NZ IFRS 7
The following amendments are effective for the period beginning 1 January 2027:
–
NZ IFRS 18 Presentation and Disclosure in Financial Statements.
The Group is currently assessing the effect of these new accounting standards and amendments.
NZ IFRS 18 Presentation and Disclosure in Financial Statements supersedes NZ IAS 1 and will result in
major consequential amendments to IFRS Accounting Standards including NZ IAS 8 Basis of Preparation
of Financial Statements. Even though NZ IFRS 18 will not have any effect on the recognition and
measurement of items in the consolidated financial statements, it is expected to have a significant effect
on the presentation and disclosure of certain items. These changes include categorisation and sub-totals in
the statement of profit or loss, aggregation/disaggregation and labelling of information and disclosure of
management defined performance measures.
The accounting policies used in these financial statements have been applied consistently with those of the
prior year.
The Group does not expect any other standards issued by the New Zealand Accounting Standards Board
(NZASB) or IASB, but not yet effective, to have a material impact on the Group.
3.
Revenue and segment information
The Group is in the business of developing, manufacturing and selling soft tissue repair products. Revenue
from contracts with customers is recognised when performance obligations pursuant to that contract are
satisfied by the Group.
The Group has identified the following main categories of revenue:
Sales of goods
The Group’s revenue primarily consists of the sale of its products. Revenue is recorded when the customer
takes possession of the product. All contracts with customers are standardised and satisfy the criteria
of transaction approval, identification of each party’s rights, payment terms, commercial substance, and
probable collection based on the customer’s ability and intention to pay. Revenue is recognised at a point in
time when control over the product transfers to the customer, which is assessed to be at the time of receipt
of goods by the customer.
The Group also sells its products via a distributor model whereby the sales are made direct to a distributor
being the customer of the Group, with the distributor permitted to resell the Aroa products to an end user.
The Group has assessed these arrangements to consider that control passes to the distributor at the point the
distributor takes possession of the products. The Group considers itself to be acting as principal in the sale of
goods to distributors and recognises revenue on a gross basis.
All contracts with distributors are standardised and satisfy the criteria of transaction approval, identification
of each party’s rights, payment terms, commercial substance, and probable collection based on the
customer’s ability and intention to pay. Revenue is recognised at a point in time when control over the
product transfers to the distributor as the customer, which is assessed to be at the time of receipt of goods
by the distributor.
a. Revenue share
The Group’s largest customer is TELA Bio who is the Group’s sales and distribution partner for abdominal
wall reconstruction and hernia repair and breast reconstruction in North America and Europe. The
contract with TELA Bio entitles the Group to an agreed percentage of TELA Bio’s net sales. This revenue is
considered to be variable consideration (“revenue share”). The consideration is variable since the quantum
of TELA Bio’s inventory that is eventually sold and the price that it is sold at are uncertain.
2.
Summary of material accounting policies (continued)
63
The consideration from TELA Bio is received from a transfer price for the products shipped to TELA Bio,
with the balance of the consideration received on quarterly true up to the agreed percentage based on
TELA Bio’s net sales. The Group estimates the true up on TELA Bio’s inventory at the reporting date by
using the expected value method. The estimation is based on information that is reasonably available to
the Group which incorporates key factors including sales history, forecast revenue growth, expiry date of
inventory held and average selling prices achieved by TELA Bio. The amount of variable consideration
estimated is only recorded by the Group to the extent that it is highly probable that a significant amount
of the cumulative revenue recognised will be received in the future. The contract asset in relation to
revenue share arrangement with TELA Bio at 31 March 2025 is $18,712,000 (2024: $15,140,000).
b. Project fees
Project fees received are recognised over time using the input method when the performance obligations
are fulfilled pursuant to the project development agreement. The Company’s input methods include
resources consumed, labour hours expensed, costs incurred. Any project fees received, for which the
requirements under the project agreement have not been completed, are carried as income in advance
(liability) until all applicable performance obligations have been fulfilled.
2025
$000
2024
$000
Sales of goods (USA)
80,467
65,190
Sales of goods (Rest of the world)
3,510
2,776
Project fees (USA)
720
1,100
Total revenue
84,697
69,066
Revenue recognised point in time
83,977
67,966
Revenue recognised over time
720
1,100
Total revenue
84,697
69,066
Segment information
Revenues from external customers are from sales of goods and project fees as reflected above.
The Group sells its products and services to external customers who are largely located in the United States
of America (the “USA”) as reflected in the sales above.
For the purpose of the internal reporting provided to the chief operating decision makers, business activities,
performances and any associated assets and liabilities are reviewed as a consolidated group.
Revenues of $40,432,000 (2024: $33,746,000) are derived from a single external customer, being sales of
products and services to TELA Bio, which is the Group’s sales and distribution partner. The revenue derived
from Tela represents 48% (2024: 49%) of the total Group revenue.
The Group held all of its non-current assets in New Zealand with an exception of the right-of-use assets of
$348,000 (2024: $455,000) for the leasehold property and property, plant and equipment of $243,000
(2024: $209,000) in the USA as of the reporting date.
Other income
2025
$000
2024
$000
Research and development tax credit income
911
1,628
Other income
172
36
Balance at end of the year
1,083
1,664
The Group receives government assistance in the form of grants for eligible R&D expenditure under the New
Zealand R&D Tax Incentive scheme. These grants are recognised as other income when there is reasonable
assurance that the Group will comply with the conditions attached and that the grant will be received.
Annual Report 2025
4.
Loss from operations before net financing income
Loss from operations before net financing income includes the following:
Note
2025
$000
2024
$000
Audit’s fees:
Statutory audit – BDO
167
163
Half-year review – BDO
68
55
Employee benefit expenses
48,299
45,137
Employer contributions defined contribution Superannuation scheme
3,063
2,632
Employee share-based payment expenses
18
2,160
3,404
Depreciation:
Leasehold improvements
11
582
550
Plant and equipment
11
842
906
Furniture and fittings
11
66
72
Computer equipment
11
377
460
Right of use assets
15
1,100
1,024
Directors' fees (excluding share-based payment expenses)
20
720
710
Insurance
1,609
1,462
Amortisation:
Patents
12
145
126
Customer relationships
12
618
618
Reacquired rights
12
543
543
Capitalised development costs
12
670
96
5.
Net finance income
Finance income and finance expenses have been accrued to the reporting date using the effective
interest method.
2025
$000
2024
$000
Finance income
Interest received on bank balances – financial assets at amortised cost
1,059
1,800
Other finance income
Foreign currency gains
304
94
Unrealised foreign currency gains
-
108
Total finance income
1,363
2,002
Finance expenses
Interest expenses – lease liabilities (Note 16)
(476)
(490)
Other finance expenses
Finance costs – make good provision
(5)
(14)
Finance costs – financial liabilities at amortised costs
(7)
-
Unrealised foreign currency losses
(131)
-
Unrealised foreign currency losses on derivatives
(1,076)
(1,254)
Total finance expenses
(1,695)
(1,758)
Net finance (expenses)/income
(332)
244
65
6.
Income taxes
Tax expense comprises current and deferred tax. Current tax and deferred tax is recognised in profit or loss
except to the extent that it relates to a business combination, or items recognised directly in equity or in
other comprehensive income.
Deferred tax is not recognised for:
–
temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business
combination and that affects neither accounting nor taxable profit or loss;
–
temporary differences arising on the initial recognition of goodwill;
Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they
reverse, using tax rates enacted or substantively enacted at the reporting date.
A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences,
to the extent that it is probable that future taxable profits will be available against which they can be utilised.
Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer
probable that the related tax benefit will be realised, such reductions are reversed when the probability of
future taxable profits improves.
Income tax recognised in profit or loss and other comprehensive income
Reconciliation of income tax expense
2025
$000
2024
$000
Accounting loss before income tax
(3,250)
(10,427)
Income tax @ 28%
(910)
(2,920)
Impact of tax rates in overseas jurisdictions
(134)
(329)
Expenses not deductible for tax purposes
748
76
Tax credits received subject to tax
-
(21)
Prior year tax over provisions
-
(51)
Recognition deferred tax on temporary differences and tax losses
859
3,446
Income tax expense
563
201
Major components of tax expense
2025
$000
2024
$000
Current tax expense
Current period
563
201
Total tax expense
563
201
The Group has elected to defer expenditure relating to research and development allowed under section
DB34 of the Income Tax Act 2007. As at 31 March 2025, the Group had $38,273,147 (2024: $33,193,250) of
expenditure available to offset against subsequent years income subject to section EJ23 of the Income Tax
Act 2007.
Deferred tax assets have been recognised to the extent they offset deferred tax liabilities. No deferred tax has
been recognised on tax losses or deferred research and development expenditure in 2025 on the basis that
large tax profits are not foreseeable in the year ending 31 March 2026. Total tax affected deferred tax asset
not recognised at 31 March 2025 is $9,664,000 (2024: $9,752,000).
Annual Report 2025
2025
$000
2024
$000
Deferred tax assets/(liabilities) recognised:
Accrued revenue
(5,239)
(4,239)
Deferred R&D expenditure
6,060
5,642
Intangible assets
(1,804)
(2,316)
Rights of use assets
(1,397)
(1,678)
Lease liabilities
1,688
1,947
Other temporary differences
94
13
Provision
598
631
Total deferred tax asset/(liability) recognised
-
-
2025
$000
2024
$000
Deferred tax assets unrecognised (tax effected)
Temporary differences
1,994
6,335
Deferred R&D expenditure
4,656
3,417
Unused tax losses
3,014
-
Total deferred tax asset unrecognised (tax effected)
9,664
9,752
7.
Cash and cash equivalents & term deposits
Cash and cash equivalents include cash on hand, deposits held at call with financial institutions and other
short term deposits with maturities of three months or less and bank overdrafts.
a. Cash and cash equivalents
2025
$000
2024
$000
Bank balances – cash at bank
7,991
11,522
Total cash and cash equivalents
7,991
11,522
b. Term deposits
2025
$000
2024
$000
Term deposits
14,000
18,000
Total term deposits
14,000
18,000
During the year, the Group entered into short-term deposit arrangements with BNZ and Westpac. The term
deposits not yet matured as of the reporting date had an average rate of 4.35% (2024: 6.05%) per annum
with a maturity of 5-9 months from the reporting date.
8.
Financial assets at fair value through other comprehensive income
The Group classifies the following financial assets at fair value through other comprehensive income
(“FVTOCI”):
The Group holds an equity investment in TELA Bio, a U.S. listed company. The Group has elected to recognise
fair value gains or losses through other comprehensive income. TELA Bio is the Group’s largest customer and
trading partner where the investment is held. The Group held 74,316 (2024: 74,316 shares) shares at a value of
US$1.22 per share as at the reporting date (2024: US$5.67).
6.
Income taxes (continued)
67
Financial assets measured at FVTOCI include the following:
2025
$000
2024
$000
US listed equity securities
Balance at beginning of the year
703
1,260
Changes in fair value through other comprehensive income
(545)
(557)
Balance at end of the year
158
703
The fair value of the listed equity securities is based on published market price (level 1 in the fair value
hierarchy) and is revalued at reporting date.
9.
Trade and other receivables
Trade and other receivables are recognised initially at fair value plus directly attributable transaction
costs and subsequently measured at amortised cost using the effective interest method less provision for
impairment.
The Group applies the NZ IFRS 9 simplified approach to measuring expected credit losses using a lifetime
expected credit loss provision for trade receivables and contract asset (note 3). To measure expected credit
losses on a collective basis, trade receivables and contract asset (note 3) are grouped based on similar credit
risk and aging. The expected loss rates are based on the Group’s historical credit losses experienced over the
three-year period prior to the period end. The historical loss rates are then adjusted for current and forward-
looking information on macroeconomic factors affecting the Group’s customers.
2025
$000
2024
$000
Trade receivables
15,213
11,446
Less provision for impairment of trade receivables
(354)
(309)
Net trade receivables
14,859
11,137
Other receivables
211
433
Other receivables – Research and Development Tax Incentive accrual
1,088
1,693
Trade and other receivables – financial assets at amortised cost
16,158
13,263
GST receivable
169
174
Total current trade and other receivables
16,327
13,437
Trade receivables amounting to $14,859,000 (2024: $11,137,000) are shown net of impairment losses. Trade
receivables are interest free. Trade receivables of a short-term duration are not discounted. Other receivables
include an accrual of tax credit income relating to the Research and Development Tax Incentive program.
(i) Impaired receivables
As at 31 March 2025, current trade receivables with a nominal value of $354,000 (2024: $309,000) were
impaired and provided for.
(ii) Past due but not impaired receivables
As at 31 March 2025, trade receivables of $1,699,000 (2024: $2,140,000) were past due but not impaired.
Subsequent to the reporting date, the Group received over $917,000 of these past due trade receivables.
The ageing analysis of trade receivables is as follows:
2025
$000
2024
$000
Current
13,160
8,997
1 - 30 days overdue
825
1,286
30 - 60 days overdue
299
377
60 - 90 days overdue
408
246
90 + days overdue
521
540
Total trade receivables
15,213
11,446
Annual Report 2025
10. Inventories
Inventories are measured at the lower of cost and net realisable value. The cost of inventories is based on
the standard cost principle, and includes expenditure incurred in acquiring the inventories, production or
conversion costs and other costs incurred in bringing them to their existing location and condition.
Inventory of $4,601,000 (FY24: $3,624,000) was recognised in cost of sales for the period, including
$392,000 (FY24: $551,000) relating to stock obsolescence.
2025
$000
2024
$000
Raw materials
2,738
2,475
Work in progress
3,209
4,178
Finished goods
3,242
2,050
Provision for obsolescence
(919)
(599)
Total inventories
8,270
8,104
11. Property, plant & equipment
(i) Recognition and measurement
Items of plant and equipment are measured at cost less accumulated depreciation and accumulated
impairment losses.
(ii) Depreciation
Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each
component of an item of property, plant and equipment. Assets under construction are not subject to
depreciation.
The useful life estimate for the current year of significant items of property, plant and equipment are as
follows:
Leasehold improvements
5 - 15 years
Fixtures & fittings
3 - 10 years
Plant & equipment
10 - 20 years
Computer equipment
3 - 5 years
Depreciation methods, rates and residual values are reviewed at reporting date and adjusted if appropriate.
(iii) Capital commitment
Please refer to note 24e for capital commitments.
Leasehold
Improve-
ments
$000
Capital Work
In Progress
$000
Plant and
Equipment
$000
Fixture &
Fitting
$000
Computer
Equipment
$000
Total
$000
Cost
Balance 1 April 2024
4,875
8,324
9,731
805
2,064
25,799
Additions
22
1,849
230
7
201
2,309
Transfers in/ (out)
184
(1,732)
1,479
-
69
-
Written off
-
(34)
(37)
-
-
(71)
Balance 31 March 2025
5,081
8,407
11,403
812
2,334
28,037
Accumulated Depreciation
Balance 1 April 2024
(2,131)
-
(6,004)
(392)
(1,503)
(10,030)
Depreciation
(582)
-
(842)
(66)
(377)
(1,867)
Written off
-
-
31
-
-
31
Balance 31 March 2025
(2,713)
-
(6,815)
(458)
(1,880)
(11,866)
Net Book Value
Balance 1 April 2024
2,744
8,324
3,727
413
561
15,769
Balance 31 March 2025
2,368
8,407
4,588
354
454
16,171
69
Leasehold
Improve-
ments
$000
Capital Work
In Progress
$000
Plant and
Equipment
$000
Fixture &
Fitting
$000
Computer
Equipment
$000
Total
$000
Cost
Balance 1 April 2023
4,618
5,726
9,322
789
1,821
22,276
Additions
9
2,978
277
16
243
3,523
Transfers in/ (out)
248
(380)
132
-
-
-
Balance 31 March 2024
4,875
8,324
9,731
805
2,064
25,799
Accumulated Depreciation
Balance 1 April 2023
(1,581)
-
(5,098)
(320)
(1,043)
(8,042)
Depreciation
(550)
-
(906)
(72)
(460)
(1,988)
Balance 31 March 2024
(2,131)
-
(6,004)
(392)
(1,503)
(10,030)
Net Book Value
Balance 1 April 2023
3,037
5,726
4,224
469
778
14,234
Balance 31 March 2024
2,744
8,324
3,727
413
561
15,769
12. Intangible assets
Patents that are acquired by the Group and have finite useful lives are measured at cost less accumulated
amortisation and accumulated impairment losses.
Trademarks have finite useful lives and are measured at cost less accumulated amortisation and accumulated
impairment losses.
Patent and trademark costs are amortised on a straight-line basis over the useful life.
Goodwill, customer relationships and reacquired rights are attributable to the purchase of the wound care
business entered into between the Group and Hollister Incorporated. Goodwill is not amortised.
Impairment tests on goodwill and other intangible assets with indefinite useful economic lives are undertaken
annually at the financial year end. Other non-financial assets are subject to impairment tests whenever events
or changes in circumstances indicate that their carrying amount may not be recoverable. Where the carrying
value of an asset exceeds its recoverable amount (i.e. the higher of value in use and fair value less costs to
sell), the asset is written down accordingly.
Where it is not possible to estimate the recoverable amount of an individual asset, the impairment test is
carried out on the smallest group of assets to which it belongs for which there are separately identifiable cash
flows; its cash generating units (“CGUs”). Goodwill is allocated on initial recognition to each of the Group’s
CGUs that are expected to benefit from a business combination that gives rise to the goodwill.
Impairment charges are included in profit or loss. An impairment loss recognised for goodwill is not reversed.
Patents and trademarks, customer relationships and reacquired rights are amortised on a straight-line basis in
profit or loss over their estimated useful lives, from the date that they are available for use.
The estimated useful lives for the current period are as follows:
Patents and trademarks
2 - 21 years
Reacquired rights
18 years
Customer relationships
9 years
Capitalised development costs*
5 years
*The Group commences the amortisation when the asset is in the condition necessary for it to be capable of
operating in the manner intended by management.
Annual Report 2025
Patents &
trademarks
$000
Customer
relationships
$000
Reacquired
rights
$000
Goodwill
$000
Capitalised
development
costs
$000
Total
$000
Cost
Balance 1 April 2024
2,255
5,563
9,772
5,538
4,150
27,278
Additions
317
-
-
-
1,073
1,390
Written off
(7)
-
-
-
-
(7)
Balance 31 March 2025
2,565
5,563
9,772
5,538
5,223
28,661
Accumulated Depreciation
Balance 1 April 2024
(514)
(3,709)
(3,257)
-
(96)
(7,576)
Amortisation
(145)
(618)
(543)
-
(670)
(1,976)
Balance 31 March 2025
(659)
(4,327)
(3,800)
-
(766)
(9,552)
Net Book Value
Balance 1 April 2024
1,741
1,854
6,515
5,538
4,054
19,702
Balance 31 March 2025
1,906
1,236
5,972
5,538
4,457
19,109
Patents &
trademarks
$000
Customer
relationships
$000
Reacquired
rights
$000
Goodwill
$000
Capitalised
development
costs
$000
Total
$000
Cost
Balance 1 April 2023
1,611
5,563
9,772
5,538
1,332
23,816
Additions
644
-
-
-
2,818
3,462
Balance 31 March 2024
2,255
5,563
9,772
5,538
4,150
27,278
Accumulated Depreciation
Balance 1 April 2023
(388)
(3,091)
(2,714)
-
-
(6,193)
Amortisation
(126)
(618)
(543)
-
(96)
(1,383)
Balance 31 March 2024
(514)
(3,709)
(3,257)
-
(96)
(7,576)
Net Book Value
Balance 1 April 2023
1,223
2,472
7,058
5,538
1,332
17,623
Balance 31 March 2024
1,741
1,854
6,515
5,538
4,054
19,702
On 31 March 2025, the Group tested whether goodwill has suffered any impairment. For the purpose of
impairment testing, goodwill is allocated to the Group’s Wound Care business, at which goodwill is monitored
for internal management purposes.
The recoverable amount is determined based on value in use calculations using the method of estimating
future cash flows and determining a discount rate in order to calculate the present value of the cash flows.
A discounted cash flow (“DCF”) model has been based on five-year forecast cash flow projections. The key
assumptions used in calculating the recoverable amount are as follows:
2025
2024
Discount rate before tax
14.7%
14.7%
Discount rate post tax
10.6%
10.6%
Terminal growth rate
3.5%
3.5%
Average growth rates over the forecast period
22.8%
25.8%
Average gross profit over the forecast period
89%
89%
No impairment was identified for the Wound Care business as a result of this review, nor under any
reasonable possible change, in any of the key assumptions described above.
12. Intangible assets (continued)
71
Basis of key assumptions
–
Cash flow projections
The cashflow projections used in the recoverable amount calculations are based on management’s budget
for the year ending 31 March 2026, then applicable growth rates applied to revenue and costs from year
2 to 5. Management has used its past experience of revenue growth, operating costs, margin and external
sources of information where appropriate to determine their expectations for the future.
–
Growth rates
The growth rates reflect the long-term average growth rates for the product lines and health care industry
(publicly available).
–
Discount rates
The present value of the expected cash flows is determined by applying a suitable discount rate. The
discount rate was derived based on the weighted average cost of capital (WACC) for comparable entities
in the healthcare industry, based on market data. The discount rates reflect appropriate adjustments
relating to market risk.
13. Trade and other payables
Trade and other payables are initially recognised at fair value plus directly attributable transaction costs
and subsequently at amortised cost. Trade and other payables represent liabilities for goods and services
provided to the Group prior to the end of financial year which are unpaid.
2025
$000
2024
$000
Trade payables
1,666
1,709
Accrued expenses
1,771
2,032
Total trade and other payables
3,437
3,741
Trade payables generally have terms of 30 days and are interest free. Trade payables of a short-term duration
are not discounted.
14. Employee benefits
(i) Short term employee benefits
Liabilities for wages and salaries, including non-monetary benefits and accumulating annual leave that are
expected to be settled wholly within 12 months after the end of the period in which the employees render the
related service are recognised in respect of employees’ services up to the end of the reporting period and are
measured at the amounts expected to be paid when the liabilities are settled.
The obligations are presented as other payables and accruals in the statement of financial position if the
entity does not have an unconditional right to defer settlement for at least 12 months after the reporting date,
regardless of when the actual settlement is expected to occur.
(ii) Defined contribution plans
Obligations for contributions to defined contribution plans are expensed as the related service is provided.
2025
$000
2024
$000
Leave and wages accrual
1,905
2,512
Bonus accrual
504
324
Commission accrual
1,200
872
Employee benefits
3,609
3,708
Annual Report 2025
15. Right of use assets
2025
Properties Total
$000
2024
Properties Total
$000
Balance at beginning of the year
6,447
6,403
Additions during the year
-
1,068
Depreciation for the year
(1,100)
(1,024)
Modification adjustment
(12)
-
Balance at end of the year
5,335
6,447
16. Lease liabilities
2025
Properties Total
$000
2024
Properties Total
$000
Balance at beginning of the year
7,435
7,107
Additions during the year
-
1,068
Interest expense (note 5)
476
490
Lease payments
(1,483)
(1,230)
Modification adjustment
(12)
-
Balance at end of the year (note 21)
6,416
7,435
Current
1,119
1,004
Non-current
5,297
6,431
Total
6,416
7,435
All leases are accounted for by recognising a right-of-use asset and a lease liability except for:
–
Leases of low value assets; and
–
Leases with a term of 12 months or less
On initial recognition, the carrying value of the lease liability may also include:
–
amounts expected to be payable under any residual value guarantee;
–
the exercise price of any purchase option granted in favour of the Group if it is reasonably certain to
exercise that option;
–
any penalties payable for terminating the lease, if the term of the lease has been estimated on the basis of
termination option being exercised.
Right of use assets are initially measured at the amount of the lease liability, reduced for any lease incentives
received, and increased for:
–
lease payments made at or before commencement of the lease;
–
initial direct costs incurred; and
–
the amount of any provision recognised where the Group is contractually required to dismantle, remove or
restore the leased asset.
Nature of leasing activities (in the capacity as lessee)
The Group leases four properties in the jurisdictions in which it operates. In some jurisdictions it is customary
for lease contracts to provide for payments to increase each year by inflation and in others to be reset
periodically to market rental rates.
As standard industry practice, the Group’s property leases are subject to market rent reviews. A 1% increase in
these payments would result in an additional $15,000 outflow compared to the current period’s cash outflow
of $1,483,000 (2024: $1,230,000).
Please refer to note 21 for lease maturity analysis.
73
17. Share capital
Ordinary shares
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares
and share options are recognised as a deduction from equity, net of any tax effects. These ordinary shares
have no par value.
2025
$000
2024
$000
Share capital at beginning of the year
146,798
146,491
Shares exercised under share option plan
34
196
Issue of shares to employees
10
111
Share capital at end of the year
146,842
146,798
# of shares
Ordinary
shares 2025
Ordinary
shares 2024
At beginning of year
344,207,834
343,109,468
Issue of share capital
692,422
1,098,366
At end of year
344,900,256
344,207,834
18. Share based payments reserve
Share option plan
The Group operates a share option plan for selected employees to provide an opportunity to participate in a
Share Option Plan. This is an offer of options to acquire ordinary shares. Under the terms of the plan, a parcel
of options was issued to employees with an exercise price equal to the market valuation of shares at the time
of offer. The grant of share options is split into three tranches vesting over a three year period.
The share based payments reserve comprises the fair value of the employee share purchase plan before its
classifications to share capital upon settlement.
The grant date fair value of equity-settled share-based payment awards granted to employees is recognised
as an employee expense, with a corresponding increase in equity, over the period that the employees
unconditionally become entitled to the awards. The amount recognised as an expense is adjusted to reflect
the number of awards for which the related service and non-market performance conditions are expected
to be met, such that the amount ultimately recognised as an expense is based on the number of awards
that do meet the related service and non-market performance conditions at the vesting date. For share-
based payment awards with non-vesting conditions, the grant date fair value of the share-based payment
is measured to reflect such conditions and there is no true-up for differences between expected and actual
outcomes.
Grant of performance share rights
On 23 July 2024, the Company granted 961,255 shares to Brian Ward with a nil exercise price. The shares will
vest only if the Company’s performance against specified hurdles over a specified time-frame are met with
the vesting date of June 2027.
On 13 December 2024, the Company granted 3,007,872 shares to selected employees with a nil exercise
price. The shares will vest only if the Company’s performance against specified hurdles over a specified
time-frame are met with the vesting date of June 27 or the vesting date of June 25, June 26 and June 27. The
number of share rights that will vest depend on the Company’s performance against the criteria below:
–
Relative TSR criteria
–
3 year Revenue CAGR criteria
–
3 year EBITDA criteria
Grant of restricted stock units.
On 13 December 2024, the Company granted 1,026,235 units to selected employee with a nil exercise price.
The units will vest if the service-based condition is met with the vesting date of March 27 or the vesting date
of March 25, March 26 and March 27. The fair value of the restricted stock units is AUD0.68 which is the share
price on the grant date.
Annual Report 2025
Key valuation assumptions for the share options and grant of share rights plan are:
Grant Date
13 December 2024 –
Grant of performance
share rights*
23 Jul 2024 –
Grant of performance
share rights
6 Oct 2023
Performance
6 Oct 2023
Non-performance
Share price at grant date (AUD)
0.650
0.620
0.819
0.755
Valuation date
13 December 2024
23 Jul 2024
6 Oct 2023
6 Oct 2023
Share price at valuation date
(AUD)
0.650
0.620
0.76
0.76
Average exercise price (NZD)
Nil
Nil
0.97
0.97
Expected volatility*
43%
37%
72%
72%
Expected life
3 years
3 years
5 years
5 years
Risk free factor
3.86%
4.41%
3.98%-4.06%
4.10%
Valuation model
Monte Carlo
Monte Carlo
Monte Carlo
Binomial
Dividend yield
0%
0%
0%
0%
*The valuation relates to performance share rights with a vesting date of June 2027. Performance share rights vesting in June 2025 and June 2026
have been valued based on options issued in October 2023.
Audited
31 March 2025
$000
Audited
31 March 2024
$000
Opening balance
10,268
7,179
Share based payment expense
2,638
3,404
Employee shares forfeited
(478)
(223)
Total expenses recognised in consolidated statement of profit or loss
2,160
3,181
Forfeiture of employee shares released through retained earnings in equity
(1,907)
-
Exercise of employee shares recognised through share-based payments reserve
(34)
(92)
Total changes recognised in consolidated statement of movements in equity
(1,941)
(92)
Closing balance
10,487
10,268
a. Aroa Biosurgery share option plan (the “Option Plan”) – prior to IPO
Under the Option Plan prior to IPO, the Company granted directors, key management and certain employees,
options to subscribe for ordinary shares since 2017 (Refer to note 20).
Summary of options granted under the Option Plan – prior to IPO
2025
Average
exercise price
per option
NZ$
2025
# of options
2024
Average
exercise price
per option
NZ$
2024
# of options
Opening balance
0.10
1,735,725
0.10
2,841,450
Exercised during the period
0.11
(552,312)
0.10
(1,105,725)
Forfeited during the period
(0.11)
(392,688)
-
-
Closing balance
0.10
790,725
0.10
1,735,725
Vested and exercised as at 31 March
0.10
790,725
0.10
1,735,725
18. Share based payments reserve (continued)
75
Share options outstanding at the end of the year have the following expiry dates:
Grant date
Expiry date
Share options
2025
Share options
2024
1 October 2018
01 October 2028
790,725
790,725
1 December 2019
30 November 2029
-
945,000
Total
790,725
1,735,725
b. Aroa Biosurgery share option plan (the “Option Plan”) – on and after IPO
On the Group’s IPO in July 2020, the share options were issued to certain employees and directors under a
new share option plan. Under this plan, the Group issued options to certain employees and directors until
October 2023 (Refer to note 20). The Company has adopted a new Omnibus Incentive Plan (Refer to 18(c)
and 18 (d)). The existing share option plan remains in effect for the securities issued under this plan.
Grants under the Option Plan comprised 20,025,538 (2024: 25,566,955) share options with various vesting
conditions including non-market service conditions, market conditions and non-market performance
conditions.
Summary of options granted under the Option Plan – on and after IPO
2025
Average
exercise price
per option
NZ$
2025
# of options
2024
Average
exercise price
per option
NZ$
2024
# of options
Opening balance
0.78
25,566,955
1.09
17,828,074
Granted in November 2022
-
-
0.93
50,000
Granted in August 2023
-
-
0.93
210,686
Granted in October 2023
-
-
0.97
8,978,601
Exercised during the year
-
-
0.81
(50,000)
Forfeited during the period
0.88
(5,541,597)
1.06
(1,450,406)*
Closing balance
0.86
20,025,358
0.78
25,566,955
Vested and exercised as at 31 March
1.08
12,027,365
1.09
11,919,471
* Includes an adjustment of 218,100 options forfeited on 31 March 2024, with no impact on the dollar amount.
Share options – on and after IPO outstanding at the end of the year have the following expiry dates:
Grant date
Expiry date
Share options
2025
Share options
2024
24 July 2020
23 July 2025
5,104,050
5,104,050*
29 September 2020
28 September 2025
1,040,000
1,538,200
22 April 2021
31 March 2026
200,000
200,000
28 June 2021
28 June 2026
1,535,000
2,005,000
9 August 2021
8 August 2026
2,475,000
2,925,000
1 August 2022
29 February 2028
2,806,577
3,432,419
14 November 2022
13 November 2027
1,450,323
1,712,515
3 August 2023
13 November 2027
210,686
210,686
6 October 2023
30 June 2024 -
3 August 2028
5,203,722
8,439,085
Total
20,025,358
25,566,955
* Includes an adjustment of 218,100 options forfeited on 31 March 2024, with no impact on the dollar amount.
Annual Report 2025
c. Aroa Biosurgery share rights ( the “Omnibus Incentive Plan”)
The Company issued performance share rights to key management and certain employees of the company
(Refer to note 20).
Summary of performance share rights
FY25
# of rights
FY24
# of rights
Opening balance
-
-
Granted in July 2024
961,255
-
Granted in December 2024
3,007,872
-
Forfeited during the period
(135,388)
-
Closing balance
3,833,739
-
Vested and exercised as 31 March
-
-
Share rights outstanding at the reporting date have the following expiry dates:
Grant date
Expiry date
Share rights
2025
Share rights
2024
23 July 2024
30 June 2027
961,255
-
13 December 2024
30 June 2025 –
30 June 2027
2,872,484
-
Total
3,833,739
-
d. Aroa Biosurgery restricted stock unites ( the “Omnibus Incentive Plan”)
During the year, the Company issued restricted stock units to key management and certain employees of the
company (Refer to note 20).
Summary of restricted stock units
FY25
# of units
FY24
# of units
Opening balance
-
-
Granted in December 2024
1,026,235
-
Forfeited during the period
(67,694)
-
Closing balance
958,541
-
Vested and exercised as 31 March
-
-
Restricted stock unit at the reporting date have the following expiry dates:
Grant date
Expiry date
Stock units
2025
Stock units
2024
13 December 2024
30 March 2025 –
30 March 2027
958,541
-
Total
958,541
-
18. Share based payments reserve (continued)
77
19. Earnings per share
Earnings per share has been calculated based on shares and share options issued at the respective
measurement dates.
2025
‘000
2024
‘000
Numerator
Loss for the year after tax (“N”) in $000
(3,813)
(10,628)
Denominator
Weighted average number of ordinary shares used in basic EPS (“D1”)
344,900
343,825
Effects of:
Employee share options *
25,824
24,049
Weighted average number of shares used in diluted EPS (“D2”)
344,900
343,825
Cents
Cents
Basic earnings per share (N/D1 x 100)
(1.11)
(3.09)
Diluted earnings per share (N/D2 x 100)
(1.11)
(3.09)
* As employee share options are currently anti-dilutive due to the Group making losses, these were not included in the calculation of diluted earnings
per share above.
20. Related parties
(i) Subsidiaries
Interests in subsidiaries are set out in Note 1.
(ii) Key management compensation
Key management includes Directors (Executive and Non-Executive) and the executive management team.
Executive Management Team
2025
$000
2024
$000
Short term employee benefits
2,201
2,239
Employer contributions defined contribution superannuation scheme
56
-
Share based payment expenses
847
1,254
Total
3,104
3,493
Non-executive Directors
2025
$000
2024
$000
Short term employee benefits
720
710
Share based payment expenses
151
316
Total
871
1,026
(iii) Year end balances
There were no related party balances at year end other than loans provided to key management personnel
for acquisition of Company shares prior to IPO of $86,000 (2024: $92,000), including interest of $5,000
(2024: Nil) on the loans (note 24).
(iv) Transactions with related parties
There were no other related party transactions during the year.
Annual Report 2025
21. Financial risk management
The Group’s activities expose it to a variety of financial risks: market risk (including currency risk and interest
rate risk), credit risk (note 9) and liquidity risk. The Group’s overall risk management programme focuses
on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial
performance of the Group. The Group uses different methods to measure different types of risk to which it
is exposed. These methods include sensitivity analysis in the case of interest rate and foreign exchange risks
and aging analysis for credit risk.
Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates, will
affect the Group’s income or the value of its holdings of financial instruments. The objective of market risk
management is to manage and control risk exposures within acceptable parameters whilst optimising the
return on risk.
Foreign exchange risk
The Group is exposed to currency risk on sales, purchases and liabilities that are denominated in a currency
other than the respective functional currency of the Company, being NZ dollars (NZD). The currency risk
arises primarily with respect to sales and expenses.
The Group has certain net monetary assets/(liabilities) that are exposed to foreign currency risk. The table
below summarises the Group’s net exposure at reporting date to foreign currency risk, against its respective
functional currency, expressed in NZ dollars.
Exposure to foreign currency risk
2025
USD
$000
AUD
$000
EUR
$000
CAD
$000
Cash and cash equivalents
2,413
-
-
-
Trade and other receivables
8,957
24
183
35
Financial assets at FVTOCI
91
-
-
-
Trade and other payables
(1,197)
(59)
(1)
(1)
Lease liabilities
(220)
-
-
-
Derivatives
24,684
-
-
-
Net exposure
34,728
(35)
182
34
2024
USD
$000
AUD
$000
EUR
$000
CAD
$000
Cash and cash equivalents
1,446
Trade and other receivables
6,763
-
68
31
Financial assets at FVTOCI
421
-
-
-
Trade and other payables
(3,796)
(30)
(1)
(4)
Lease liabilities
(289)
-
-
-
Derivatives
27,150
-
-
-
Net exposure
31,695
(30)
67
27
79
The following significant exchange rates applied during the year:
Average rate
2025
Average rate
2024
Closing rate
2025
Closing rate
2024
NZD/USD
0.5940
0.6101
0.5710
0.5991
Sensitivity analysis – underlying exposures
A 5% weakening/strengthening of the NZ dollar against the US dollar at 31 March 2025 would have increased/
decreased equity and the net result for the period by the amounts shown below. Based on historical
movements a 5% increase or decrease in the NZ dollar is considered to be a reasonable estimate. This
analysis assumes that all other variables remain constant.
US dollar
The Group’s net result and equity for the period would have been $3,201,000 higher on a 5% weakening of
the NZ dollar (2024: $2,784,000 higher), and $2,896,000 lower on a 5% strengthening of the NZ dollar as at
31 March 2025 (2024: $2,519,000 lower).
Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails
to meet its contractual obligations. Credit risk arises from cash and cash equivalents and deposits with banks
and financial institutions, as well as from the Group’s receivables due from customers. Only major banks are
accepted for cash and deposit balances.
Payment and delivery terms are agreed to within each of the respective customers agreements. Aging of
payments due from customers are monitored on a regular basis (Refer to note 9).
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The
Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient
liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring
unacceptable losses or risking damage to the Group’s reputation.
The Group manages liquidity risk by continuously monitoring forecast and actual cash flows and matching
the maturity profiles of financial assets and liabilities.
The tables below analyse the Group’s financial liabilities into relevant maturity groupings based on the
remaining period at the reporting date to the contractual maturity date. The amounts disclosed in the table
are the contractual undiscounted cash flows, including interest payments in respect of financial liabilities.
At 31 March 2025
Note
Less than
3 months
$000
3-12
months
$000
Between 1
and 2 years
$000
Over
2 years
$000
Total
contractual
cash flows
$000
Total
carrying
amounts
$000
Non derivative
financial liabilities
Trade and other
payables
13
3,437
-
-
-
3,437
3,437
Lease liabilities
16
380
1,143
1,562
4,485
7,570
6,416
Total
3,817
1,143
1,562
4,485
11,007
9,853
At 31 March 2025
Note
Less than
3 months
$000
3-12
months
$000
Between 1
and 2 years
$000
Over
2 years
$000
Total
contractual
cash flows
$000
Total
carrying
amounts
$000
Derivative financial
liabilities
Derivative liabilities
510
912
716
-
2,138
2,138
Total
510
912
716
-
2,138
2,138
Annual Report 2025
At 31 March 2024
Note
Less than
3 months
$000
3-12
months
$000
Between 1
and 2 years
$000
Over
2 years
$000
Total
contractual
cash flows
$000
Total
carrying
amounts
$000
Non derivative
financial liabilities
Trade and other
payables
13
3,741
-
-
-
3,741
3,741
Lease liabilities
16
370
1,113
1,523
6,070
9,076
7,435
Total
4,111
1,113
1.523
6,070
12,817
11,176
At 31 March 2024
Note
Less than
3 months
$000
3-12
months
$000
Between 1
and 2 years
$000
Over
2 years
$000
Total
contractual
cash flows
$000
Total
carrying
amounts
$000
Derivative financial
liabilities
Derivative liabilities
507
406
149
-
1,062
1,062
Total
507
406
149
-
1,062
1,062
Capital adequacy
The Board’s aim is to maintain a strong capital base to sustain future development of the business and
to maintain investor and creditor confidence. The shareholder funds raised to date provide the Group a
sufficient capital base to continue to grow the business.
22. Financial instruments by category
(i) Non-derivative financial liabilities
The Group initially recognises all other financial liabilities (including liabilities designated at fair value
through profit or loss) on the trade date, which is the date that the Group become a party to the contractual
provisions of the instrument.
The Group derecognises a financial liability when its contractual obligations are discharged, cancelled or
expire.
The Group classifies non-derivative financial liabilities into the other financial liability category. Such financial
liabilities are recognised initially at fair value plus any directly attributable transaction costs. Subsequent
to initial recognition, these financial liabilities are measured at amortised cost using the effective interest
method.
Other financial liabilities comprise trade and other payables.
The Group initially recognises financial assets at amortised cost on the date that they are originated.
The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire,
or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all the
risks and rewards of ownership of the financial asset are transferred. Any interest in transferred financial
assets that is created or retained by the Group is recognised as a separate asset or liability.
Financial assets and liabilities are offset and the net amount presented in the statement of financial position
when, and only when, the Group has a legal right to offset the amounts and intends either to settle on a net
basis or to realise the asset and settle the liability simultaneously.
The Group classifies non-derivative financial assets into the following categories: financial assets at fair value
through other comprehensive income and financial assets at amortised cost.
(ii) Derivatives
Derivatives are initially recognised at fair value on the date a derivative contract is entered into, and they are
subsequently remeasured to their fair value. Derivatives are carried in the consolidated statement of financial
position at fair value with the changes in fair value recognised in the consolidated statement of profit or loss
in the finance income or expenses. The Group does not apply hedge accounting for derivative contracts.
The Group considers that the carrying amount of the following financial assets and financial liabilities are a
reasonable approximation of their fair value.
21. Financial risk management (continued)
81
At 31 March 2025
Note
Assets at
amortised cost
$000
Assets at
fair value
through other
comprehensive
income
$000
Total
$000
Financial assets as per Consolidated Statement
of Financial Position
Cash and cash equivalents
7a
7,991
-
7,991
Term deposits
7b
14,000
-
14,000
Trade and other receivables
9
16,158
-
16,158
Financial assets at FVTOCI
8
-
158
158
Total financial assets
38,149
158
38,307
At 31 March 2025
Note
Liabilities at
amortised cost
$000
Liabilities at fair
value through
profit and loss
$000
Total
$000
Financial liabilities as per Consolidated Statement
of Financial Position
Trade and other payables
13
1,666
-
1,666
Lease liabilities
16
6,416
-
6,416
Derivative liabilities
-
2,138
2,138
Total financial liabilities
8,082
2,138
10,220
At 31 March 2024
Note
Assets at
amortised cost
$000
Assets at
fair value
through other
comprehensive
income
$000
Total
$000
Financial assets as per Consolidated Statement
of Financial Position
Cash and cash equivalents
7a
11,522
-
11,522
Term deposits
7b
18,000
-
18,000
Trade and other receivables
9
13,263
-
13,263
Financial assets at FVTOCI
8
-
703
703
Total financial assets
42,785
703
43,488
At 31 March 2024
Note
Liabilities at
amortised cost
$000
Liabilities at fair
value through
profit and loss
$000
Total
$000
Financial liabilities as per Consolidated Statement
of Financial Position
Trade and other payables
13
1,709
-
1,709
Lease liabilities
16
7,435
-
7,435
Derivative liabilities
-
1,061
1,061
Total financial liabilities
9,144
1,061
10,205
Annual Report 2025
(i) Financial instruments measured at fair value
The fair value hierarchy of financial instruments measured at fair value is provided below.
Note
2025
$000
2024
$000
Financial assets
US listed equity securities
8
158
703
Derivative financial (liabilities)/assets
(2,138)
(1,061)
The fair value of the listed equity securities is based on published market price (level 1) in the fair value
hierarchy and is revalued at reporting date. The fair value of derivative assets is based on level 2 inputs.
(ii) Financial instruments not measured at fair value
Financial instruments not measured at fair value includes cash and cash equivalents, trade and other
receivables, trade and other payables.
Due to their short-term nature, the carrying value of cash and cash equivalents, term deposits, trade and
other receivables, and trade and other payables approximates their fair value.
23. Events after the reporting date
There have been no significant events subsequent to reporting date which required disclosure in or
adjustment to the consolidated financial statements.
24. Other Disclosures
a. Reconciliation of loss after income tax to cash flow from operating activities
2025
$000
2024
$000
Loss after tax
(3,813)
(10,628)
Add / (deduct) non-cash items:
Depreciation of property, plant and equipment
1,867
1,988
Depreciation of right of use assets
1,100
1,024
Gain on disposal of assets
7
-
Amortisation of intangibles
1,976
1,383
Share based payment expenses
2,160
3,181
Interest – lease liabilities
476
490
Unrealised currency losses / (gains)
1,276
1,897
Movement in working capital:
Movement in provisions
13
3
Movement in tax receivable
(1)
(26)
Movement in trade and other receivables
(2,890)
901
Movement in prepayments and contract assets
(4,161)
(4,424)
Movement in inventories
(166)
(3,273)
Movement in trade and other payables
(403)
109
Movement in interest on employee loan
(7)
-
Net cash flows from operating activities
(2,566)
(7,375)
22. Financial instruments by category (continued)
83
b. Reconciliation of changes in liabilities arising from financing activities.
Note
Total lease
liabilities 2025
$000
Total lease
liabilities 2024
$000
At 1 April
(7,435)
(7,107)
Cash flow – lease payments
1,483
1,230
Non-cash flow:
Modifications during the year
16
12
(1,068)
Interest accrued during the year
16
(476)
(490)
At 31 March
(6,416)
(7,435)
c. Foreign currency transactions
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing
at the dates of the transactions.
Foreign exchange gains and losses resulting from the settlement of such transactions and from the
translation of monetary assets and liabilities denominated in foreign currencies at reporting date exchange
rates are recognised profit or loss.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using
the exchange rate as at the date of the initial transaction.
Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at
the date when the fair value was determined and are recognised in Other Comprehensive Income (except on
impairment in which case foreign currency differences that have been recognised in Other Comprehensive
Income are reclassified to profit or loss).
d. Goods and services tax (GST)
Revenues and expenses have been recognised in the financial statements exclusive of GST except that
irrecoverable GST input tax has been recognised in association with the expense to which it relates. All items
in the Statement of Financial Position are stated exclusive of GST except for receivables and payables which
are stated inclusive of GST.
e. Capital commitments
As at 31 March 2025, the Group had no capital commitments (2024: $867,500).
f. Contingent liabilities
As at 31 March 2025, the Group had no significant contingent liabilities (2024: $nil).
Annual Report 2025
ADDITIONAL
INFORMATION
+ Aroa Biosurgery Limited
Aroa Biosurgery Limited is a New Zealand incorporated company and is
registered with ASIC as a foreign company. Accordingly, the Company
is principally governed by New Zealand law, rather than Australian law.
This means that the Company’s general corporate activities (apart from
any offering of securities in Australia and certain reporting and disclosure
obligations) are not regulated by ASIC under the Corporations Act (AU).
Instead, they are regulated in New Zealand by New Zealand law including
the Companies Act, Financial Markets Conduct Act 2013, Financial Markets
Conduct Regulations 2014 and by the New Zealand Financial Markets
Authority and the Registrar of Companies.
+ Stock exchange information and on-market buy-backs
The Company’s shares were officially quoted on the ASX on 24 July 2020
(ASX Code: ARX). During the year ended 31 March 2025, the Company
did not seek, or rely upon, any waivers from the ASX Listing Rules. As at
16 June 2025, there is no current on-market buy-back of the Company’s
shares and the Company did not undertake an on-market buy-back of
its shares during the year ended 31 March 2025. The Company has no
restricted securities for the purpose of the ASX Listing Rules.
+ Ordinary shares
On 31 March 2025 and as at the date of this Annual Report, the Company
only has one class of shares on issue, being ordinary shares in the
Company, each conferring to the registered holder the rights set out in the
Company’s constitution, including the right to vote on any resolution at a
meeting of shareholders. Holders of ordinary shares may vote at a meeting,
in person or by proxy, representative or attorney.
The total number of ordinary shares in the Company on issue as at
31 March 2025 was 344,900,256 shares.
NZ Company No. 1980577
ARBN 638 867 473
85
The total number and distribution of shareholdings as at 16 June 2025 is as shown in the table below:
Based on the closing market price of AROA’s ordinary shares on 16 June 2025, there were 645 shareholders
holding less than marketable parcels, representing 351,076 shares.
The Company has not carried out any issues of securities approved for the purposes of Item 7 of section 611 of the
Corporations Act.
+ Share options
The total number and distribution of share options as at 16 June 2025 is as shown in the table below:
Share options do not carry voting rights.
Please refer to the Remuneration Report and note 18 to the consolidated financial statements for further details of
share options outstanding.
+ Shares issued on exercise of options
The table below shows the ordinary shares issued during FY25 upon exercise of share options granted under the
US Option Plan.
Under the option plan rules, at the Board’s discretion, options may be exercised by cashless settlement. This
involves issuing a reduced number of shares to the participant generally equivalent to: (a) an amount equal to
the difference between the current value of the Company’s shares (being the VWAP for the five trading days
immediately preceding the option exercise date) and the exercise price of the shares, multiplied by the number of
options being exercised, and divided by (b) the current value of the Company’s shares.
Size of Shareholding
Number of holders
%
Number of Ordinary
shares
%
1 to 1000
839
22.45%
545,076
0.16%
1,001 to 5,000
1,272
34.04%
3,514,626
1.02%
5,001 to 10,000
561
15.01%
4,516,821
1.31%
10,001 to 100,000
909
24.33%
28,290,492
8.20%
100,001 and over
156
4.17%
308,033,241
89.31%
Totals
3,737
100.00%
344,900,256
100.00%
Size of holding
number of holders
%
number of share options
%
1 to 1000
-
0.0%
-
-
1,001 to 5,000
-
0.0%
-
-
5,001 to 10,000
-
0.0%
-
-
10,001 to 100,000
37
48.05%
1,859,389
9.43%
100,001 and over
40
51.95%
17,849,605
90.57%
Totals
77
100.00%
19,708,994
100.00%
Date options exercised
Number of options exercised
Average exercise price
Number of shares issued
13/08/2024
552,312
AUD0.0982
552,312
Annual Report 2025
+ Performance shares rights
The total number and distribution of performance share rights (PSRs) as at 16 June 2025 is as shown in the table below:
Size of holding
number of holders
%
number of PSRs
%
1 to 1000
-
0.0%
-
-
1,001 to 5,000
-
0.0%
-
-
5,001 to 10,000
-
0.0%
-
-
10,001 to 100,000
9
40.9%
609,246
15.89%
100,001 and over
13
59.1%
3,224,493
84.11%
Totals
22
100.0%
3,833,739
100.00%
Size of holding
number of holders
%
number of RSUs
%
1 to 1000
-
0.0%
-
0.00%
1,001 to 5,000
-
0.0%
-
0.00%
5,001 to 10,000
-
0.0%
-
0.00%
10,001 to 100,000
17
94.4%
806,228
84.11%
100,001 and over
1
5.6%
152,313
15.89%
Totals
18
100.0%
958,541
100.00%
PSRs do not carry voting rights.
Please refer to the Remuneration Report for further details about PSRs.
+ Restricted stock units
The total number and distribution of restricted stocks units (RSUs) as at 16 June 2025 is as shown in the table below:
RSUs do not carry voting rights.
Please refer to the Remuneration Report for further details about RSUs.
87
+ Twenty largest shareholders
The names and holdings of the 20 largest registered shareholders in the Company as at 16 June 2025 was as
follows:
Shareholder name
Shareholding
Holding as a % of total ordinary shares
on issue as at the date above
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
54,177,509
15.708%
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
40,003,479
11.599%
BRIAN WARD, TRACEY WARD & THOMAS WARD
*
33,125,800
9.604%
PHIL MCCAW *
19,597,251
5.682%
CITICORP NOMINEES PTY LIMITED
13,535,396
3.924%
RICHARD ABBOTT
13,043,020
3.782%
BNP PARIBAS NOMS (NZ) LTD
12,626,147
3.661%
MIRRABOOKA INVESTMENTS LIMITED
11,426,177
3.313%
ASPIRE NZ SEED FUND LTD
10,421,614
3.022%
K ONE W ONE (NO 3) LTD
5,882,550
1.706%
CUSTODIAL SERVICES LIMITED
5,766,819
1.672%
BNP PARIBAS NOMS PTY LTD
5,199,275
1.507%
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2
4,567,671
1.324%
SHARON BRYANT
4,372,267
1.268%
JOHN ANTHONY DELL
4,348,864
1.261%
BARNABY MAY**
3,272,775
0.949%
CHRISTOPHER DAVID ASTLEY MILNE
3,248,022
0.942%
K ONE W ONE LTD
3,041,226
0.882%
SHARESIES AUSTRALIA NOMINEE PTY LIMITED
2,890,667
0.838%
JAMES MCLEAN***
2,827,108
0.820%
Total Top 20 Holders
253,373,637
73.463%
Total Shares
344,900,256
*Refer to Substantial Shareholders section below for other equity securities held by Brian
Ward and Philip McCaw.
** Barnaby May also holds 158,128 unlisted options expiring on 30 June 2025 at a nil
exercise price, 691,350 unlisted options expiring on 23 July 2025 at an exercise price of
AU$0.75, 127,280 unlisted options expiring on 30 June 2026 at a nil exercise price and
256,576 unlisted options expiring on 3 August 2028 at an exercise price of AU$0.91. In
addition, Mr May holds 253,853 PSRs with a vesting date of 30 June 2027.
***James McLean also holds 52,400 unlisted options expiring on 23 July 2025 at an
exercise price of AU$0.75 and 258,929 unlisted options expiring on 29 February 2028 at
an exercise price of AU$1.083.
Annual Report 2025
+ Takeovers and substantial holdings
While the ASX Listing Rules apply to the Company, certain provisions of the Corporations Act do not. The
Company is not subject to Chapters 6, 6A, 6B and 6C of the Corporations Act, which deals with the acquisition of
its shares (including takeovers and substantial holdings). The New Zealand position under the Takeovers Code (as
set out in the Takeovers Regulations 2000) and the Financial Markets Conduct Act 2013 is broadly comparable
to the Australian position in relation to the regulation of takeovers. The New Zealand takeovers regime, not the
Australian takeovers regime, will apply to the Company as a foreign company. A 20% threshold applies (under
which a person (together with their associates) is prevented from increasing the percentage of voting rights held
or controlled by them in excess of that 20% threshold or from increasing an existing holding of more than 20%
of the voting rights), subject to certain exceptions including, but not limited to, full and partial takeover offers,
5% creep over 12 months in the 50% to 90% range, and acquisitions with shareholder approval. Compulsory
acquisitions are permitted by persons who hold or control 90% or more voting rights in a code company.
Under New Zealand law, there is no requirement for a shareholder of the Company to issue a substantial holding
notice of holdings above 5%, and because the Company is a New Zealand company the Corporations Act
provisions regarding substantial shareholder notices do not apply to the Company. However, a shareholder may
voluntarily disclose such information if it chooses to do so and a number of New Zealand companies listed on
ASX experience shareholders lodging notices similar to a substantial shareholder notice that is required under the
Corporations Act notwithstanding there is no requirement to do so. Separately, the Company has undertaken to
ASX that it will inform the market immediately on becoming aware of a person becoming a Substantial Holder, a
movement of at least 1% of shares in which the Substantial Holder has a relevant interest and a person ceasing to
be a Substantial Holder.
+ Limitations on the acquisition of AROA shares
In general, under applicable law shares in the Company are freely transferrable and the only significant restrictions
or limitations in relation to the acquisition of AROA shares are those imposed by the New Zealand takeovers
regime (discussed above) and if applicable, the Overseas Investment Act 2005 (NZ) and the Commerce Act 1986
(NZ).
AROA’s constitution also permits the directors to (in their absolute discretion) refuse or delay the registration of
any transfer of AROA shares if permitted to do so by the Companies Act or the ASX Listing Rules. This includes
(without limitation) where the relevant shares are subject to a holding lock pursuant to the ASX Settlement
Operating Rules or escrow.
+ Substantial shareholders
Set out below is, to the best of the Company’s knowledge, details relating to all Substantial Holders in the
Company as at 16 June 2025.
*of the Substantial Holder and their “associates” (within the meaning given to that term in
section 12 of the Corporations Act).
** Brian Ward also holds 3,132,525 unlisted options expiring 23 July 2025 at an exercise
price of AU$0.75; 591,768 unlisted options expiring 13 November 2027 at a nil exercise
price; 649,695 unlisted options expiring 13 November 2027 at an exercise price of
AU$1.165; 453,206 unlisted options expiring 29 February 2028 at a nil exercise price;
254,972 unlisted options expiring 29 February 2028 at an exercise price of AU$1.165, and
961,255 PSRs which have a vesting date of on 1 August 2027.
*** The shareholding referenced above reflects holdings by the McSyth Capital Investment
Trust as well as the Horizon Two Adventures Trust and McSyth Charitable Foundation
Trust, the latter being a registered charity of which Phil is one of two trustees. He also
has an interest in 81,925 unlisted options (held by the McSyth Capital Investment Trust)
expiring 23 July 2025 at an exercise price of AU$0.75, and holds 172,620 unlisted options
expiring 29 February 2028 at an exercise price of AU$1.083.
Shareholder name
Shareholding*
Holding as % of total ordinary shares
(according to relevant SSH notice)
BRIAN WARD, TRACEY WARD & THOMAS WARD
**
33,125,800
9.91
FIRSTCAPE GROUP LIMITED
30,421,199
8.82
ACORN CAPITAL LIMITED
22,491,106
6.52
PHIL MCCAW ***
20,077,154
5.82
STATE STREET AUSTRALIA LTD ACF AUSTRALIAN ETHICAL
INVESTMENT LIMITED
17,288,432
5.01
89
Name
Interest
James McLean
Director, Mesynthes Nominees Limited
Chairman, Prevar Limited
Brian Ward
Director, Green Edge Limited
Philip McCaw
Director, Mesynthes Nominee Limited
CEO and Chairperson, Author-IT Limited
Director, Kaynemaile Ltd
Director, Shift72 Limited
Director, Movac Limited
Director, Movac Fund 4 Custodial Limited
Director, Movac Fund 5 Custodial Limited
Director, Movac Fund 5 General Partner Limited
Director, Movac Fund 4 General Partner Limited
Director, CAVOM Nominee No 1 Limited
Director, Calcium Investments Limited
Director, Calcium Investment Trustee Limited
Director, PJM Management Limited
Director, Author IT Software Corporation Limited
John Pinion
Advisory Board Member, Celestial Therapeutics, Inc
Chief Operating Officer, Amlogenyx Inc
John Diddams
Non-Executive Chairman, xReality Group Limited (ASX: XRG)
Director, Surf Lakes Global Inc
Director, DIT AgTech Limited
Dr. Catherine Mohr
Director, Carta Healthcare
Director, Avisi Therapeutics
Director, FINCA International
Director, Spark Acquisition
+ Securities subject to voluntary escrow
As at 16 June 2025, 70,055 ordinary shares issued to Darla Hutton were subject to voluntary escrow. The escrow
period for those shares will end on 31 March 2026.
+ General disclosures of interests by Directors
AROA maintains an interests register in accordance with the Companies Act. The following are general disclosures
of interests (pursuant to section 140(2) of the Companies Act) that were noted in the Company’s interests register
as at 1 April 2024 and remained current as at 31 March 2025.
Annual Report 2025
Company
Directors
Aroa Biosurgery Incorporated (Delaware File number 6560549)
Brian Ward, John Pinion
Mesynthes Nominee Limited (NZBN 9429 041 350 003)
James McLean, Philip McCaw
Name
Interest
Nature of update to the Company’s interests register
James McLean
Chairman, R J Hill Laboratories Limited
Removed. Mr McLean ceased being a director
of RJ Hill Laboratories Limited on 30 June 2024
The following updates to the general disclosures of interests were made during the financial year ended
31 March 2025:
Details of share dealings by the directors during the 12-month period ended 31 March 2025 are set out in the
Remuneration Report.
+ Use of company information
AROA did not receive notice from any director requesting to use company information received in their capacity
as a director of any Group company, which would not otherwise have been available to them.
+ Donations
Donations during the year ended 31 March 2025 totalled $10,000.
+ Subsidiary company information
All subsidiary companies in the Group are wholly owned by AROA.
The people listed below held office as a director of Company subsidiaries during the year to 31 March 2025. They
continue to hold those positions. They do not receive any remuneration or other benefits for their role as a director
of a Company subsidiary.
Other than as disclosed in the Company’s interests register, no entries were made in the interests register of any
Company subsidiary during the year ended 31 March 2025.
Annual Report 2025
GLOSSARY
AND OTHER
INFORMATION
Term
Description
AROA or the Company
Aroa Biosurgery Limited NZCN 1980577, ARBN 638 867 473
ASIC
Australian Securities & Investments Commission
ASX
Australian Securities Exchange
CC or Constant Currency
Constant currency removes the impact of exchange rate movements. This approach
is used to assess the AROA group’s underlying comparative financial performance
without any distortion from changes in foreign exchange rates, specifically the USD.
Unless otherwise specified, all references in this Annual Report to ‘constant currency’
or ‘CC’ are as set out here.
CEO
Chief Executive Officer
Companies Act
Companies Act 1993 (NZ)
Corporations Act
Corporations Act 2001 (Cth, Australia)
ECM
Extracellular matrix
EBIT
Earnings before interest and tax
EBITDA
Earnings before interest, tax, depreciation and amortisation
FDA
Food and Drug Administration (US)
FY
Financial Year
GPO
Group purchasing organisation
Group
The group of companies comprising AROA, Aroa Biosurgery Incorporated (Delaware
File number 6560549) and Mesynthes Nominee Limited (NZCN 5414111)
IPO
The Company’s initial public offering in July 2020 of 60,000,000 shares in the
Company at a price of A$0.75 per share
LTI or long-term incentive
A discretionary long-term incentive variable remuneration in the form of share
options.
NZD
New Zealand Dollar
+ Glossary
93
+ IP notice
AROA, Aroa Biosurgery, AROA ECM, Endoform, Myriad, Myriad Matrix, Morcells, Myriad Morcells, Myriad Morcells
Fine, Symphony and Enivo are trademarks of Aroa Biosurgery Limited. All other trademarks are properties of their
respective owners. ©2025 Aroa Biosurgery Limited.
+ References
1 Normalised EBITDA is non-conforming financial information, as defined by the NZ Financial Markets Authority,
and has been provided to assist users of financial information to better understand and assess the Group’s
comparative financial performance without any distortion from the one-off transactions. The impact of non-cash
share-based payments expense and unrealised foreign currency gains or losses has also been removed from the
Profit or Loss. This approach is used by Management and the Board to assess the Group’s comparative financial
performance. Refer to page 30 for reconciliation to NZ GAAP profit or loss.
2 Guidance assumes an average NZ$/US$ exchange rate in FY26 of 0.60 (compared to the average rate of 0.59
in FY25), the applicable US tariff rates remain at 10%, and there is no material decline in US medical procedure
numbers, or sustained disruption to AROA’s manufacturing or transportation activities.
NZ GAAP
New Zealand Generally Accepted Accounting Practice
NZ IFRS
New Zealand Equivalents to International Financial Reporting Standards
NZ Option Plan
The Aroa Biosurgery Share Option Plan (NZ)
Omnibus Plan
The Aroa Biosurgery Omnibus Plan commencing in FY25
PSRs
Performance share rights issued under the Omnibus Plan
RSUs
Restricted stock units issued under the Omnibus Plan
Shares
Ordinary shares in the Company
Share Plan
The Aroa Employee Incentive Share Plan 2014, which was wound up in 2020
STI or Short-term incentive
Discretionary short-term bonus providing the potential for an annual cash bonus
based on pre-determined company and individual targets
Substantial Holder
Has the meaning given to it in the Corporations Act
TAM
Estimated total addressable market
TELA Bio
TELA Bio, Inc. TELA Bio is AROA’s sales and distribution partner licensed for
abdominal wall reconstruction/hernia and breast reconstruction indications in North
America and Europe.
US
The United States of America
USD
United States Dollar
US Option Plan
The AROA Biosurgery 2021 US Share Option Plan
VWAP
The volume weighted average market price for Shares reported on the ASX
Annual Report 2025
Directors
James McLean, Chair and
independent non-executive
director
Brian Ward, Founder, Chief
Executive Officer and Managing
Director
John Diddams, independent
non-executive director
Darla Hutton, independent
non-executive director
Philip McCaw, non-executive
director
Dr. Catherine Mohr, independent
non-executive director
John Pinion, independent
non-executive director
Joint Company Secretaries
James Agnew, Chief Financial
Officer and Joint Company
Secretary
Tracy Weimar, Joint Company
Secretary
NZ Registered Office
64 Richard Pearse Drive, Mangere,
Auckland 2022, New Zealand
Telephone: + 64 9 869 3035
Australian Registered Office
Level 1, 357 Military Road,
Mosman NSW 2088
Australia
Telephone: + 61 3 9692 7222
CORPORATE
DIRECTORY
Auditor
BDO Auckland
Level 4, BDO Centre
4 Graham Street
Auckland 1010
New Zealand
New Zealand Legal Adviser
Chapman Tripp
Level 34, PwC Tower
15 Customs Street West
Auckland CBD, Auckland 1140
New Zealand
Australian Legal Adviser
Mills Oakley
Level 7, 151 Clarence Street
Sydney NSW 2000
Australia
Securities Registry
Automic Pty Limited
Level 8, 210 George Street
Sydney NSW 2000
Contact number if calling from
inside Australia 1300 288 664
Contact number if calling from
outside Australia +61 2 9698 5414
hello@automicgroup.com.au
Website
www.aroa.com
©June 2025
www.aroa.com