Announcement PDF Invion Limited Appendix 4D Half-year report 1. Company details Name of entity: ABN: Reporting period: Previous period: Invion Limited 76 094 730 417 For the half-year ended 31 December 2024 For the half-year ended 31 December 2023 2. Results for announcement to the market $ Revenues from ordinary activities down 100.0% to - Loss from ordinary activities after tax attributable to the owners of Invion Limited up 162.2% to (1,872,230) Loss for the half-year attributable to the owners of Invion Limited up 162.2% to (1,872,230) Dividends There were no dividends paid, recommended or declared during the current financial period. Comments The loss for the consolidated entity after providing for income tax amounted to $1,872,230 (31 December 2023: Loss of $714,173). 3. Net tangible assets Reporting period Cents Net tangible assets per ordinary security 4. Control gained over entities Not applicable. 5. Loss of control over entities Not applicable. 6. Dividends Current period There were no dividends paid, recommended or declared during the current financial period. Previous period There were no dividends paid, recommended or declared during the previous financial period. 7. Dividend reinvestment plans Not applicable. 0.29 Previous period Cents 0.06 Invion Limited Appendix 4D Half-year report 8. Details of associates and joint venture entities Not applicable. 9. Foreign entities Details of origin of accounting standards used in compiling the report: Not applicable. 10. Audit qualification or review Details of audit/review dispute or qualification (if any): The financial statements were subject to a review by the auditors and the review report is attached as part of the Half year ended. 11. Attachments Details of attachments (if any): The Half year ended of Invion Limited for the half-year ended 31 December 2024 is attached. 12. Signed Signed ___________________________ Thian Chew Chairman Date: 28 February 2025 Invion Limited ABN 76 094 730 417 Half year ended - 31 December 2024 Invion Limited Contents 31 December 2024 Corporate directory Directors' report Auditor's independence declaration Consolidated statement of profit or loss and other comprehensive income Consolidated statement of financial position Consolidated statement of changes in equity Consolidated statement of cash flows Notes to the consolidated financial statements Directors' declaration Independent auditor's review report to the members of Invion Limited 1 2 3 5 6 7 8 9 10 17 18 Invion Limited Corporate directory 31 December 2024 Directors Mr Thian Chew, (Executive Chairman and CEO) Mr Alan Yamashita, Non-executive Director Mr Alistair Bennallack, Non-executive Director Ms Melanie Leydin, Non-executive Director (Appointed on 31 August 2024) Mr Rob Merriel, Non-executive Director (Resigned on 31 August 2024) Company secretary Ms Melanie Leydin (appointed on 28 October 2024) Australia Business Number 76 094 730 417 Registered office Level 4, 100 Albert Road, South Melbourne Vic 3205 Australia P: (03) 8618 6843 E: investor@inviongroup.com W: www.inviongroup.com Share register Boardroom Pty Limited Level 12, 225 George Street, Sydney NSW 2000 P: 1300 737 760 W: www.boardroomlimited.com.au Auditor William Buck Level 20, 181 William Street Melbourne VIC 3000 Stock exchange listing Invion Limited shares are listed on the Australian Securities Exchange (ASX code: IVX) 2 Invion Limited Directors' report 31 December 2024 The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'consolidated entity') consisting of Invion Limited (referred to hereafter as the 'company' or 'parent entity') and the entities it controlled at the end of, or during, the half-year ended 31 December 2024. Directors The following persons were directors of Invion Limited during the whole of the financial half-year and up to the date of this report, unless otherwise stated: Mr Thian Chew, Chairman and CEO Mr Alan Yamashita, Non-executive Director Mr Alistair Bennallack, Non-executive Director Ms Melanie Leydin (Appointed on 31 August 2024) Mr Rob Merriel, Non-executive Director (Resigned on 31 August 2024) Review of operations The loss for the consolidated entity after providing for income tax amounted to $1,872,230 (31 December 2023: Loss of $714,173). Invion did not recognise any revenue for the period. As disclosed in previous ASX filings the company is currently in discussions with RMW Cho Group Limited (RMWCG) to expand Invion’s rights to the Photosoft™ technology to other territories and/or indications. Any revenue recognition for the year would be contingent upon the outcome of these negotiations which is expected to be completed before the end of the current financial year. Invion is a life science company that is leading the global research and development of the Photosoft™ technology for the treatment of a range of cancers, atherosclerosis and infectious diseases. The progress achieved in the first half of FY2025 puts the Company in a strong position as it heads toward a number of key clinical milestones over the coming year. One of the notable achievements in the period was the successful completion of an investigator-lead Phase II prostate cancer trial using a sublingual (under the tongue) formulation of INV043. The trial used six treatment cycles of INV043 as a monotherapy. It was found to be safe and well tolerated by patients with no serious adverse events experienced and all side effects reported were mild. Importantly, 40% of patients showed positive signals to the treatment with 10% demonstrating complete regression as measured by the Response Evaluation Criteria in Solid Tumours (RECIST) 1.1 framework – a standard way to measure the response of a tumour to treatment. Further, 44% of patients had negative Prostate Specific Membrane Antigen – Positron Emission Tomography (PSMA-PET) results three months post treatment (all patients were positive before the treatment). Invion is currently undertaking a Phase I/II on-melanoma skin cancer (NMSC) trial using a topical version of INV043 and dosed its first patient last month. The trial marks a significant milestone for Invion and is designed to evaluate the safety and efficacy of its lead drug candidate INV043, a novel photosensitiser developed in Australia for use in Photodynamic Therapy (PDT) for the treatment of multiple cancers. The Company may be able to leverage the results from the NMSC trial to undertake a Phase II anogenital cancer trial in partnership with the Peter MacCallum Cancer Centre. Meanwhile, Invion’s industry partnerships with leading South Korean pharmaceutical group, Hanlim Pharm Co., Ltd. (Hanlim) and Dr. I&B Co., Ltd. (Dr.inB) are progressing. Hanlim is conducting and funding pre-clinical studies using INV043 on glioblastoma multiforme (GBM), which is a primary brain malignancy with a poor prognosis, and is planning on undertaking development work at the K-MEDI hub – a high-tech medical industry park created by the South Korean government to strategically support new drug development. Separately, Dr.inB has successful completed initial testing of Photosoft™ with promising results and is looking to undertake further studies in preparation for Proof-of-Concept human clinical trials to treat human papillomavirus (HPV). Dr.inB is undertaking and funding the studies. Under the agreements with Hanlim and Dr.inB, Invion retains all rights to the Photosoft technology. 3 Invion Limited Directors' report 31 December 2024 The Company held a cash balance of $736,447 on 31 December 2024, and has a funding agreement with Lind Partners, which will provide $100,000 per month to Invion untill June 2025. This amount may be increased by mutual agreement to up to $500,000 per month. Significant changes in the state of affairs In June 2024, the Company has secured funding through Share Subscription Agreement and Share Purchase Agreement (together, the “Agreements”) to provide a minimum of $2.4 million and up to $6.8 million in funding to the Company from Lind Global Fund II, LP an entity managed by New York-based The Lind Partners (together, “Lind”). As part of this institutional placement, Invion has issued 2.98 million shares during the period for a capital raising of $400,000. The company received $384,000 as proceeds, net of capital raising cost towards these shares issued. On 16 October 2024, the Company announced consolidation of the issued share capital of the Company on the basis that every hundred (100) fully paid ordinary Shares be consolidated into one (1) fully paid ordinary Share (rounded up to the next whole number of shares), as applicable. On 9 September 2024, the Directors have exercised the options issued in lieu of Director's fees leading to an issue of 287,261 shares priced at Nil value. On 10 December 2024, the Company issued 147,144 options to the Directors of the Company in lieu of Director's fees with an expiry date of 31 October 2028. On 16 December 2024, the Company issued 544,764 shares to Hudson Institute in lieu of services provided amounting to $100,618. There were no other significant changes in the state of affairs of the consolidated entity during the financial half-year. Matters subsequent to the end of the financial half-year Subsequent to the year end, the company on 13 January 2025 issued 136,233 options in lieu of payment for services rendered with an expiry date of 13 Jan 2029. The company on 23 January 2025 announced the placement of 500,000 shares to Lind Partners at $0.20 per share amounting to $100,000. In addition, the company received $240,000 net proceeds on 29 January 2025 from Lind Partners as agreed under the Agreement. No other matter or circumstance has arisen since 31 December 2024 that has significantly affected, or may significantly affect the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial years. No other matter or circumstance has arisen since 31 December 2024 that has significantly affected, or may significantly affect the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial years. Auditor's independence declaration A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out immediately after this directors' report. This report is made in accordance with a resolution of directors, pursuant to section 306(3)(a) of the Corporations Act 2001. On behalf of the directors ___________________________ Thian Chew Chairman 28 February 2025 4 Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001 To the directors of Invion Limited As lead auditor for the review of Invion Limited for the half-year ended 31 December 2024, I declare that, to the best of my knowledge and belief, there have been: — no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the review; and — no contraventions of any applicable code of professional conduct in relation to the review. This declaration is in respect of Invion Limited and the entities it controlled during the period. William Buck Audit (Vic) Pty Ltd ABN 59 116 151 136 A. A. Finnis Director Melbourne, 28 February 2025 Level 20, 181 William Street, Melbourne VIC 3000 +61 3 9824 8555 vic.info@williambuck.com williambuck.com.au William Buck is an association of firms, each trading under the name of William Buck across Australia and New Zealand with affiliated offices worldwide. Liability limited by a scheme approved under Professional Standards Legislation. Corps Act_Clean_Auditors Independence Declaration (2) Invion Limited Consolidated statement of profit or loss and other comprehensive income For the half-year ended 31 December 2024 Consolidated 31 December 31 December Note 2024 2023 $ $ Revenue 5 Other income Expenses Employee benefits expense Depreciation and amortisation expenses Administration & corporate expenses Share-based payment expense Research & development costs Loss before income tax expense - 2,228,435 1,679 38,931 (295,250) (413,309) (559,689) (47,163) (558,498) (293,670) (402,808) (530,061) (173,846) (1,581,154) (1,872,230) (714,173) - - (1,872,230) (714,173) - - (1,872,230) (714,173) Cents Cents Income tax expense Loss after income tax expense for the half-year attributable to the owners of Invion Limited Other comprehensive income for the half-year, net of tax Total comprehensive income for the half-year attributable to the owners of Invion Limited Basic and diluted earnings per share 10 (2.77) (1.11) The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes 6 Invion Limited Consolidated statement of financial position As at 31 December 2024 Consolidated 31 December Note 2024 30 June 2024 $ $ Assets Current assets Cash and cash equivalents Trade and other receivables Other current assets Total current assets 736,447 157,505 893,952 783,526 1,210,400 87,245 2,081,171 29,917 12,927,090 12,957,007 39,474 13,330,842 13,370,316 13,850,959 15,451,487 Current liabilities Trade and other payables Provisions Total current liabilities 623,024 99,038 722,062 926,661 87,154 1,013,815 Total liabilities 722,062 1,013,815 13,128,897 14,437,672 Non-current assets Plant and equipment Intangibles Total non-current assets 6 Total assets Liabilities Net assets Equity Issued capital Reserves Accumulated losses 7 8 Total equity 149,172,059 148,354,600 1,562,726 2,163,165 (137,605,888) (136,080,093) 13,128,897 14,437,672 The above consolidated statement of financial position should be read in conjunction with the accompanying notes 7 Invion Limited Consolidated statement of changes in equity For the half-year ended 31 December 2024 Issued capital $ Consolidated Balance at 1 July 2023 Options reserves $ 146,883,159 Accumulated losses Total equity $ $ 1,988,269 (130,475,224) 18,396,204 Loss after income tax expense for the half-year Other comprehensive income for the half-year, net of tax - - (714,173) - (714,173) - Total comprehensive income for the half-year - - (714,173) (714,173) Transactions with owners in their capacity as owners: Options granted to Directors and employees (note 14) Expiry of options - 173,846 (22,896) 22,896 173,846 - 2,139,219 (131,166,501) 17,855,877 Balance at 31 December 2023 146,883,159 Issued capital $ Consolidated Balance at 1 July 2024 Options reserves $ 148,354,600 Accumulated losses Total equity $ $ 2,163,165 (136,080,093) 14,437,672 Loss after income tax expense for the half-year Other comprehensive income for the half-year, net of tax - - (1,872,230) - (1,872,230) - Total comprehensive income for the half-year - - (1,872,230) (1,872,230) 400,000 450,412 (450,412) - 400,000 - (32,953) 47,163 100,618 48,627 (346,435) - 346,435 - 47,163 100,618 48,627 (32,953) 1,562,726 (137,605,888) 13,128,897 Transactions with owners in their capacity as owners: Placement of shares Shares issued on exercise of options Vesting of share-based payment (note 14) Options issued to Vendors in lieu of services Options issued in lieu of Director's fee Transfer on lapse of options Share issue transaction costs Balance at 31 December 2024 149,172,059 The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes 8 Invion Limited Consolidated statement of cash flows For the half-year ended 31 December 2024 Consolidated 31 December 31 December 2024 2023 $ $ Cash flows from operating activities Receipts from customers Payments to suppliers and employees (1,626,204) 1,600,000 (2,895,146) Interest received (1,626,204) 1,679 (1,295,146) 51,145 Net cash used in operating activities (1,624,525) (1,244,001) Cash flows from investing activities Payments for intangibles - (900,000) Net cash used in investing activities - (900,000) Cash flows from financing activities Proceeds from issue of shares Share issue transaction costs paid 1,700,000 (122,554) - Net cash from financing activities 1,577,446 - Net decrease in cash and cash equivalents Cash and cash equivalents at the beginning of the financial half-year (47,079) 783,526 (2,144,001) 4,084,903 Cash and cash equivalents at the end of the financial half-year 736,447 1,940,902 The above consolidated statement of cash flows should be read in conjunction with the accompanying notes 9 Invion Limited Notes to the consolidated financial statements 31 December 2024 Note 1. General information The financial statements cover Invion Limited as a consolidated entity consisting of Invion Limited and the entities it controlled at the end of, or during, the half-year. The financial statements are presented in Australian dollars, which is Invion Limited's functional and presentation currency. Invion Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business are: Registered office Principal place of business Level 4, 100 Albert Road, South Melbourne, VIC 3205 Australia 692 High Street, East Kew, VIC 3102 Australia A description of the nature of the consolidated entity's operations and its principal activities are included in the directors' report, which is not part of the financial statements. The financial statements were authorised for issue, in accordance with a resolution of directors, on 28 February 2025. Note 2. Corporate information Invion Limited is a Company limited by shares incorporated in Australia whose shares have been publicly traded on the Australian Securities Exchange since its listing on 15 February 2011 (ASX:IVX). Invion is a clinical-stage life-sciences company that is leading the global clinical development of the PhotosoftTM technology for the treatment of cancers, atherosclerosis and infectious diseases. Through the Exclusion distribution and licencing agreements of 2017, 2021, 2022 and 2023, Invion has been appointed exclusive licensee of PhotosoftTM for cancer indications in Australia, New Zealand, countries in Central, South & South East Asia and all Asia Pacific countries excluding China (other than Hong Kong), Macau, Taiwan and Japan. The appointment has been made by technology licensor, RMW Cho Group, a Hong Kong based group that has funded and successfully commercialised a number of unique and advanced technologies. Via 2017 R&D services agreement between the two entities, the research and clinical trials of PhotosoftTM on cancer treatments are funded by The RMW Cho Group for Australia and New Zealand territories. Through the Second and Third Amended & Restated Codevelopment agreement, the research on atherosclerosis and infectious diseases (AID) and cancer indications will be cofunded by Invion and the RMW Cho Group, in AID and Cancer territories defined in this agreement including the Extended ID Territory (United States of America, Canada and Hong Kong). The Invion Group (“the Group”) consists of Invion Limited (“Invion” or “the Company”) and its wholly owned subsidiary Epitech Dermal Science Pty Ltd. The Group is headquartered in Melbourne (Australia). Note 3. Material accounting policy information The accounting policies that are material to the consolidated entity are set out below. The accounting policies adopted are consistent with those of the previous financial year, unless otherwise stated. New or amended Accounting Standards and Interpretations adopted The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period. Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. The impact of these standards did not have a material impact on the consolidated entity. Going concern The financial statements have been prepared on the going concern basis, which assumes continuity of normal business activities and the realisation of assets and the settlement of liabilities in the ordinary course of business. The consolidated entity made a loss after tax of $1,872,230 during the half-year ended 31 December 2024 (31 December 2023: Loss of $714,173). There is net operating cash outflow of $1,624,525 for half-year ended 31 December 2024 (31 December 2023: outflow of $1,244,001). Cash and cash equivalents as at 31 December were $736,447 (30 June 2024: $783,526). 10 Invion Limited Notes to the consolidated financial statements 31 December 2024 Note 3. Material accounting policy information (continued) Notwithstanding the above operating results, the financial statements have been prepared on the basis that the Consolidated Entity is a going concern, which contemplates normal business activity, realisation of assets and the settlement of liabilities in the normal course of business for the following reasons: ● On 28 June 2024, the Company secured a minimum of $2.4m and up to $6.8m investment by US institutional investor, The Lind Partners. Under the agreement Invion will receive a monthly investment of $100,000, which may be increased to $500,000 on mutual agreement, until June 2025. Subsequent to the period end, the Company received gross proceeds of $350,000 from The Lind Partners under the Share Purchase Agreement; ● Management continues to assess and identify operating expenditures which may be optimised. Further the Company has significant flexibility to delay or scale down R&D activities and expenditure to ensure alignment to its prevailing cash positions; ● Potential to raise capital as equity ● Potential to access R&D financing against anticipated research and development tax incentive rebate; and ● Access to loans which Directors may elect to provide on terms yet to be negotiated and agreed. The Directors are therefore, based upon the aforementioned factors, confident that the going concern basis of preparation is appropriate as at the date of this report. The financial statements do not include any adjustments relating to the amounts or classification of recorded assets or liabilities that might be necessary if the Consolidated Entity does not continue as a going concern. Note 4. Operating segments Identification of reportable operating segments The Invion Group has identified its operating segments based on the internal reports that are reviewed and used by the Board of Directors (who are identified as the Chief Operating Decision Makers ('CODM')) in assessing performance and in determining the allocation of resources. The Invion Group operates as a clinical-stage life sciences (drug development) group. At 31 December 2024, the Group had operations in Australia only with its wholly owned subsidiary EpiTech Dermal Science Pty Ltd (previously IVX Cosmetics Pty Ltd). The Group does not consider that the risks and returns of the Group have been or are affected by differences in either the products or services it provides. The Group operates as one segment and as such in one geographical area. Group performance is evaluated based on operating profit or loss and is measured consistently with profit or loss in the consolidated financial statements. Group financing (including finance costs and finance income) and income taxes are managed on a Group basis. The information reported to the CODM is on a monthly basis. Note 5. Revenue Consolidated 31 December 31 December 2024 2023 $ $ R&D services fee- over time - 2,228,435 The above represented fees earned for Research and Development services provided under the R&D Service Agreement and the Co-development agreement with RMW Cho Group. As previously disclosed in the FY24 full year accounts, Invion has taken a provision for bad and doubtful debts due to significant delays in the settlement of the trade receivables from the Photosoft™ technology licensor, RMW Cho Group (RMW). Invion did not recognise any revenue for the period. As disclosed in previous ASX filings the company is currently in discussions with RMW Cho Group Limited (RMWCG) to expand Invion’s rights to the Photosoft™ technology to other territories and/or indications. Any revenue recognition for the year would be contingent upon the outcome of these negotiations which is expected to be completed before the end of the current financial year. 11 Invion Limited Notes to the consolidated financial statements 31 December 2024 Note 6. Non-current assets - intangibles Consolidated 31 December 2024 30 June 2024 $ $ Intellectual property - at cost Less: Accumulated amortisation 16,150,000 (3,222,910) 16,150,000 (2,819,158) 12,927,090 13,330,842 Consolidated Photosoft $ Balance as at 1 July 2024 Amortisation expense 13,330,842 (403,752) Balance as at 31 December 2024 12,927,090 Invion is developing PhotosoftTM technology as an improved next generation Photodynamic Therapy. The PhotosoftTM commercialisation licence acquired in 2018 for $5,500,000 was recognised as an intangible asset and is being amortised over a 20-year period. This licence is being carried at the cost of the licence and distribution agreement less accumulated amortisation. The commercial licence represents distribution rights of treatments using the PhotosoftTM technology, on cancer indications in Australia and New Zealand. Through the 2022 Co-development Agreement, Amended and Restated Co-development Agreement and Exclusive Distribution and Licence Agreements for AID and Cancer, 2023 Second Amended and Restated Co-development Agreement and further through Third Amended and Restated Co-development Agreement during the current year, Invion entered into the additional arrangements with RMWCG with following licenses acquired: ● Co-develop PhotosoftTM technology also referred to as Next Generation Photo Dynamic Therapy (NGPDT) for potential applications in atherosclerosis and infectious diseases (AID) (including viral, bacterial, fungal and parasitic) ('the AID indications'). In 2022 financial year, Invion had paid to RMWCG an amount of A$2.25 million as a contribution towards the prior development of the NGPDT IP as it relates to AID and the AID Territory. In consideration of the contributions made by Invion for the joint development of the NGPDT, RMWCG agrees to grant an exclusive licence to use the NGPDT IP (including any improvements thereof) and any Inventions, and to distribute Products and Procedures, in relation to the Indications in the AID Territory Under Amended and Restated Exclusive Distribution and Licence Agreement – AID. This commercialisation licence is reflected as an intangible asset and is being amortised over a 20-year period. ● Co-develop PhotosoftTM technology for Cancer Indications in the Cancer Territory defined in the Agreement. In 2022 financial year, Invion had paid to RMWCG an amount of $5 million as a contribution towards the prior development of the NGPDT IP as it relates to the Cancer Indications and the Cancer Territory. In consideration of the contributions made by Invion for the joint development of the NGPDT, RMWCG agrees to grant an exclusive licence to use the NGPDT IP (including any improvements thereof) and any Inventions, and to distribute Products and Procedures, in relation to the Indications in the Cancer Territory. This commercialisation licence is reflected as an intangible asset and is being amortised over a 20-year period. ● In 2023 financial year, Invion paid to $2.5 million to RMWCG under this Agreement, as a contribution towards the prior development of the NGPDT IP as it relates to the infectious diseases (ID) Indications and the Extended ID Territory (United States of America, Canada and Hong Kong). Under Amended and Restated Exclusive Distribution and Licence Agreement – AID, in consideration of the contributions made by Invion for the joint development of the NGPDT, RMWCG agrees to grant an exclusive licence to use the NGPDT IP (including any improvements thereof) and any Inventions, and to distribute Products and Procedures, in relation to the Indications in the Extended ID Territory. This commercialisation licence is reflected as an intangible asset and is being amortised over a 20-year period. ● In 2024 financial year, Invion paid to $0.9 million to RMWCG under this Agreement, as a contribution towards the prior development of the NGPDT IP as it relates to the Cancer Indications and the territory of South Korea. Under Amended and Restated Exclusive Distribution and Licence Agreement – Cancer, in consideration of the contributions made by Invion for the joint development of the NGPDT, RMWCG appointed Invion as its exclusive distributor of the Products and 12 Invion Limited Notes to the consolidated financial statements 31 December 2024 Note 6. Non-current assets - intangibles (continued) Procedures in the Territory; and granted to Invion an exclusive, perpetual, royalty free licence to use the NGPDT IP including any improvements to the NGPDT IP and any Inventions owned by RMWCG in relation to the Indications in the Territory. Invion also has the right to sub-licence its distribution rights to a third party in which case, Invion would pay to RWMCG Sub-Licence Fees equal to 50% of any up-front fees, milestone payments or royalties received from third parties pursuant to any Sub Licence. This commercialisation licence is reflected as an intangible asset and is being amortised over a 20-year period. At each Balance Date, the Group assesses whether there is any indication that an intangible asset may be impaired. Where an indicator of impairment exists, the Group makes an estimate of recoverable amount, and where the carrying amount of an asset may exceed its reco