# EDGAR Filing Document

**Accession Number:** 0002004489
**File Stem:** 0001641172-25-015505
**Filing Date:** 2025-6
**Character Count:** 143769
**Document Hash:** 28b3ffd9d052a9df1cee1537973a248c
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001641172-25-015505.hdr.sgml**: 20250618

**ACCESSION NUMBER**: 0001641172-25-015505

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 3

**CONFORMED PERIOD OF REPORT**: 20250618

**FILED AS OF DATE**: 20250618

**DATE AS OF CHANGE**: 20250618

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Basel Medical Group Ltd
- **CENTRAL INDEX KEY:** 0002004489
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-OFFICES & CLINICS OF DOCTORS OF MEDICINE [8011]
- **ORGANIZATION NAME:** 08 Industrial Applications and Services
- **EIN:** 000000000
- **STATE OF INCORPORATION:** D8
- **FISCAL YEAR END:** 0630

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-42527
- **FILM NUMBER:** 251055097

**BUSINESS ADDRESS:**
- **STREET 1:** 600 NORTH BRIDGE ROAD, #12-02/03
- **STREET 2:** PARKVIEW SQUARE
- **CITY:** SINGAPORE
- **STATE:** U0
- **ZIP:** 188778
- **BUSINESS PHONE:** 65 6291 9188

**MAIL ADDRESS:**
- **STREET 1:** 600 NORTH BRIDGE ROAD, #12-02/03
- **STREET 2:** PARKVIEW SQUARE
- **CITY:** SINGAPORE
- **STATE:** U0
- **ZIP:** 188778

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**Form 6-K**

**REPORT OF FOREIGN PRIVATE ISSUER**

**PURSUANT TO RULE 13a-16 OR 15d-16**

**UNDER THE SECURITIES EXCHANGE ACT OF 1934**

**For the month of June 2025**

**Commission File Number: 001-42527**

**Basel Medical Group Ltd**

**6 Napier Road, Unit #02-10/11 Gleneagles Medical Centre**

**Singapore 258499**

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒ Form 40-F ☐

**Exhibit Index**

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 99.1 | [Unaudited Consolidated Financial Statements for the Six Months Ended December 31, 2023 and 2024](ex99-1.htm) |
| 99.2 | [Management's Discussion and Analysis of Financial Conditions and Results of Operations for the Six Months Ended December 31, 2023 and 2024](ex99-2.htm) |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | |
|:---|:---|
| **Basel Medical Group Ltd** | **Basel Medical Group Ltd** |
| By: | */s/ Darren Yen Feng Chhoa* |
| Name: | Dr. Darren Yen Feng Chhoa |
| Title: | Chief Executive Officer |
| Date: | June 18, 2025 |
| By: | */s/ Jianing Lu* |
| Name: | Jianing Lu |
| Title: | Chief Financial Officer |
| Date: | June 18, 2025 |

---

## Exhibit 99.1

**Exhibit 99.1**

Basel Medical Group Ltd and its Subsidiaries

**Unaudited Consolidated Financial Statements** 

For the financial period ended December 31, 2024

**Basel Medical Group Ltd and its Subsidiaries**

**UNAUDITED INTERIM CONSOLIDATED STATEMENT OF PROFIT OR LOSS**

**AND COMPREHENSIVE INCOME**

**For the financial period ended December 31, 2024 and 2023**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Note** | <br>**July 1, 2024 to**<br> **December 31,**<br> **2024** | <br>**July 1, 2024 to** <br> **December 31,**<br> **2024** | **July 1, 2023 to** <br> **December 31,**<br> **2023** |
|  |  | **US$** | **S$** | **S$** |
| Revenue | 4 | 3684731 | 5034080 | 5088326 |
| Other income | 5 | 261782 | 357647 | 161430 |
| Consumables, medical supplies and other related expenses |  | (768029) | (1049281) | (1277016) |
| Employee benefit expenses | 7 | (2084279) | (2847542) | (1316323) |
| Depreciation expense |  | (257260) | (351469) | (265120) |
| Rent expense |  | (87835) | (120000) | (3179) |
| Other operating expense |  | (909425) | (1242459) | (353936) |
| Finance cost | 6 | (71453) | (97619) | (96123) |
| **(Loss)/profit before tax** | 7 | (231768) | (316643) | 1938059 |
| Income tax expense | 8 | (284) | (388) | (611483) |
| **(Loss)/ profit after tax** |  | (232052) | (317031) | 1326576 |
| Foreign currency translation differences |  | (179) | (12111) |  |
| **Profit for the period, representing total comprehensive income for the period** |  | (232231) | (329142) | 1326576 |
| **(Loss)/Earnings per ordinary share – basic and diluted** |  | (0.014) | (0.020) | 0.082 |
| **Weighted average number of shares –** basic and diluted |  | 16250000 | 16250000 | 16250000 |

---

 

*The accompanying notes form an integral part of these consolidated financial statements.*

 

**Basel Medical Group Ltd and its Subsidiaries**

**UNAUDITED INTERIM CONSOLIDATED BALANCE SHEETS**

**As of December 31, 2024 and June 30, 2024**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Note** | **December**<br> **31, 2024** | **December**<br> **31, 2024** | **June**<br> **30, 2024<br> (Audited)** |
|  |  | **US$** | **S$** | **S$** |
| **ASSETS** |  | | | |
| **Non-current assets** |  |  |  |  |
| Right-of-use-assets | 9 | 268945 | 367433 | 23460 |
| Property and equipment | 10 | 23692 | 32368 | 34513 |
| Deferred tax assets |  | 56364 | 77005 | 77005 |
|  |  | 349001 | 476806 | 134978 |
| **Current assets** |  |  |  |  |
| Inventories | 11 | 72689 | 99308 | 72030 |
| Trade and other receivables | 12 | 3675926 | 5022050 | 2005219 |
| Cash and cash equivalents | 13 | 5449875 | 7445619 | 1951053 |
| Amount due from related parties | 14 |  |  | 10557240 |
| Deferred offering costs |  | 1382969 | 1889412 | 1588024 |
|  |  | 10581459 | 14456389 | 16173566 |
| **Total assets** |  | 10930460 | 14933195 | 16308544 |
| **LIABILITIES** |  |  |  |  |
| **Non-current liability** |  |  |  |  |
| Borrowings | 15 |  |  | 1583434 |
| **Current liabilities** |  |  |  |  |
| Trade and other payables | 16 | 1499662 | 2048839 | 2575949 |
| Borrowings | 15 | 3199807 | 4371577 | 2706356 |
| Amount due to related parties | 14 | 358128 | 489275 | 1311390 |
| Amount due to a former director | 17 | 389286 | 531842 | 111459 |
| Asset retirement obligation |  | 10979 | 15000 | 15000 |
| Provision for income tax |  | 157228 | 214803 | 443315 |
| **Total liabilities** |  | 5615090 | 7671336 | 8746903 |
| **NET ASSETS** |  | 5315370 | 7261859 | 7561641 |
| <br>**EQUITY** |  |  |  |  |
| **Capital attributable to equity holders of the Group** |  |  |  |  |
| Share capital | 18 | 17900145 | 24455178 | 24455178 |
| Merger reserve arising from group restructuring |  | (17900139) | (24455170) | (24455170) |
| Retained earnings |  | 5324229 | 7273962 | 7561633 |
| Translation reserve |  | (8865) | (12111) | - |
| **Total equity** |  | 5315370 | 7261859 | 7561641 |

---

 

*The accompanying notes form an integral part of these consolidated financial statements.*

 

**Basel Medical Group Ltd and its Subsidiaries**

**UNAUDITED INTERIM CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY**

**For the financial period ended December 31, 2024 and 2023**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Share**<br> **capital** | **Merger reserve** | **Translation reserve** | **Retained earnings** | **Total** |
|  | **US$** | **US$** | **US$** | **US$** | **US$** |
| **As at July 1, 2024** | 17900145 | (17900139) | (8686) | 5556281 | 5547601 |
| Foreign currency translation |  |  | (179) |  | (179) |
| Loss for the period | - | - | - | (232052) | (232052) |
| Total comprehensive loss for the period | - | - | (179) | (232052) | (232231) |
| **As at December 31, 2024** | 17900145 | (17900139) | (8865) | 5324229 | 5315370 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Share**<br> **capital** | **Merger reserve** | **Translation reserve** | **Retained earnings** | **Total** |
|  | **S$** | **S$** | **S$** | **S$** | **S$** |
| **As at July 1, 2024** | 24455178 | (24455170) | - | 7590993 | 7591001 |
| Foreign currency translation |  |  | (12111) |  | (12111) |
| Loss for the period | - | - | - | (317031) | (317031) |
| Total comprehensive loss for the period | - | - | (12111) | (317031) | (329142) |
| **As at December 31, 2024** | 24455178 | (24455170) | (12111) | 7273962 | 7261859 |

---

*The accompanying notes form an integral part of these consolidated financial statements.*

**Basel Medical Group Ltd and its Subsidiaries**

**UNAUDITED INTERIM CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY**

**For the financial period ended December 31, 2024 and 2023**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Share**<br> **capital** | **Merger**<br> **reserve** | **Retained earnings** | **Total** |
|  | **S$** | **S$** | **S$** | **S$** |
| **As at July 1, 2023** | 8 |  | 5488833 | 5488841 |
| Issuance of share capital | 24455170 |  |  | 24455170 |
| Merger reserve arising from group restructuring |  | (24455170) |  | (24455170) |
| Profit for the period, representing total comprehensive income for the period | - | - | 1326576 | 1326576 |
| **As at December 31, 2023** | 24455178 | (24455170) | 6815409 | 6815417 |

---

 

*The accompanying notes form an integral part of these consolidated financial statements.*

 

**Basel Medical Group Ltd and its Subsidiaries**

**UNAUDITED INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS**

**For the financial period ended December 31, 2024 and December 31, 2023**

---

| | | | |
|:---|:---|:---|:---|
|  | **July 1, 2024**<br> **to December**<br> **31, 2024** | **July 1, 2024**<br> **to December**<br> **31, 2024** | **July 1, 2023**<br> **to December 31, 2023** |
|  | **US$** | **S$** | **S$** |
| **Cash flows from operating activities** |  |  |  |
| (Loss)/Profit before tax | (231768) | (316643) | 1938059 |
| Adjustments for: |  |  |  |
| Depreciation of property and equipment | 15006 | 20501 | 15802 |
| Amortisation of right-of-use assets | 242254 | 330968 | 249318 |
| Interest income | (39777) | (54344) | (158357) |
| Interest expense | 71453 | 97619 | 96123 |
| Operating cash flows before changes in working capital | 57168 | 78101 | 2140945 |
| Changes in working capital: |  |  |  |
| Inventories | (19965) | (27278) | (15630) |
| Trade and other receivables | (2208191) | (3016831) | (1574539) |
| Trade and other payables | (385822) | (527110) | (25208) |
| **Cash (used in)/ generated from operations** | (2556810) | (3493118) | 525568 |
| Interest paid | (71453) | (97619) | (96123) |
| Income tax paid | (146055) | (199540) | (285613) |
| **Net cash (used in)/generated from operating activities** | (2774318) | (3790277) | 143832 |
| **Cash flows from investing activities** |  |  |  |
| Acquisition of property and equipment | (13437) | (18357) | (7920) |
| Interest received | 39777 | 54344 | - |
| **Cash generated from/ (used in) investing activities** | 26340 | 35987 | (7920) |
| **Cash flows from financing activities** |  |  |  |
| Deferred offering costs | (220603) | (301388) |  |
| (Increase)/Decrease in amount due to related parties | (601753) | (822115) | 457457 |
| Decrease in amount due to former director | 307703 | 420384 | (79835) |
| Decrease in amount due from related parties | 7727448 | 10557240 | 691801 |
| Payment of principal portion of lease liabilities | (241942) | (330541) | (279236) |
| Repayment of borrowings | (3120051) | (4262613) | (1199967) |
| Proceeds from borrowings | 2927829 | 4000000 | - |
| **Net cash generated from/(used in) financing activities** | 6778631 | 9260967 | (409780) |
| Net increase/(decrease) in cash and cash equivalents | 4030653 | 5506677 | (273868) |
| Cash and cash equivalents at beginning of financial period | 1428087<br>| 1951053<br>| 1217448<br>|
| Effects of currency translation on cash and cash <br>equivalents | (8865) | (12111) | - |
| **Cash and cash equivalents at end of financial period** | 5449875 | 7445619 | 943580 |

---

*The accompanying notes form an integral part of these consolidated financial statements.*

 

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

These notes form an integral part of and should be read in conjunction with the accompanying consolidated financial statements.

**1.** **General** 

Basel Medical Group Ltd is incorporated and domiciled in British Virgin Islands (BVI) with operations conducted by its fully owned subsidiary, Basel Medical Group Pte. Ltd. (F.K.A Singmed Specialists Pte. Ltd.), based in Singapore at 6 Napier Road #03-07 Gleneagles Medical Centre, Singapore 258499. The principal activities of the Company pertain to investment holding. Basel Medical Group Ltd and its subsidiaries (the "Group") operate its business activities in Singapore.

In October 2020, as part of an internal reorganization, all of the shares in our operating subsidiaries were transferred by our founder, Dr. Kevin Yip, to Basel Medical Group Pte. Ltd. (F.K.A Singmed Specialists Pte. Ltd.) Subsequently, in June 2023, Dr. Kevin Yip entered into an agreement with Rainforest Capital VCC to sell all the shares he held in Basel Medical Group Pte. Ltd. (F.K.A. Singmed Specialists Pte. Ltd.) to Rainforest Capital VCC. Upon completion, Rainforest Capital VCC became the sole shareholder of Basel Medical Group Pte. Ltd. (F.K.A Singmed Specialists Pte. Ltd.), which holds the shares of all of our subsidiaries. Rainforest Capital VCC is a variable capital company incorporated in Singapore and is an investment fund managed by AIP Investment Partners Pte. Ltd., a licensed fund manager in Singapore.

On August 10, 2023, Basel Medical Group Ltd was incorporated under the laws of the BVI as our Group's holding company to facilitate our offering and the listing of Basel Medical Group Ltd's ordinary shares on Nasdaq, and in connection therewith, Rainforest VCC (an umbrella fund with multiple sub-funds), through its sub-fund, Basel Medical Fund, subscribed for 16,250,000 ordinary shares in Basel Medical Group Ltd amounting to US$18,362,500 at a subscription price of US$1.13 per share. In August 2023, all of the shares in Basel Medical Group Pte. Ltd. (F.K.A Singmed Specialists Pte. Ltd.) were transferred to Basel Medical Group Ltd by Rainforest Capital VCC to prepare for our listing and offering.

Subsequently, between September 2023 and January April 2024, Rainforest Capital VCC sold certain of the shares it held in Basel Medical Group Ltd to certain other investors, following which Rainforest Capital VCC held a total of 10,174,579 ordinary shares.

The consolidated financial statements of the Group were prepared on the basis as if the reorganisation became effective as of the beginning of the first period presented in the accompanying consolidated financial statements of the Group.

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**1.** **General (Continued)** 

The Group has the following subsidiaries as at December 31, 2024 and June 30, 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name of entity** | **Principal** <br> **activities** | **Country of business and incorporation** | **Proportion of ordinary shares held by Group** | **Proportion of ordinary shares held by Group** |
|  |  |  | **December 31, 2024** | **June 30, 2023** |
|  |  |  | **%** | **%** |
| Basel Medical Group Pte. Ltd. (F.K.A. Singmed Specialists Pte. Ltd.)<br>| Other holding companies | Singapore | 100 | 100 |
| Singapore Sports & Orthopaedic Clinic Pte. Ltd. | Clinics and other general medical services (western) and specialized medical services (including day surgical centres)<br>| Singapore | 100 | 100 |
| Singapore Sports & Orthopaedic Services Pte. Ltd. | Clinics and other general medical services (western) and specialized medical services (including day surgical centres)<br>| Singapore | 100 | 100 |
| SSOC Pte. Ltd. | Clinics and other general medical services (western) and specialized medical services (including day surgical centres)<br>| Singapore | 100 | 100 |
| SSOS Pte. Ltd. | Clinics and other general medical services (western) and specialized medical services (including day surgical centres) | Singapore | 100 | 100 |

---

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**1.** **General (Continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name of entity** | **Principal** <br> **activities** | **Country of business and incorporation** | <br> **Proportion of ordinary shares held by Group** | <br> **Proportion of ordinary shares held by Group** |
|  |  |  | **December 31, 2024** | **June 30, 2023** |
|  |  |  | **%** | **%** |
| Singapore Knee, Sports and Orthopaedic Clinic Pte. Ltd. | Clinics and other general medical services (western) and specialized medical services (including day surgical centres)<br>| Singapore | 100 | 100 |
| Singapore Knee, Sports & Orthopaedic Services Pte. Ltd. | Clinics and other general medical services (western) and specialized medical services (including day surgical centres)<br>| Singapore | 100 | 100 |
| Singapore Sports and Physiotherapy Centre Pte. Ltd. | Other health services N.E.C (E.g. Physiotherapy, chiropratic, speech therapy) and physiotherapy<br>| Singapore | 100 | 100 |

---

On October 14, 2024, Singmed Specialists Pte. Ltd. changed its corporate name to Basel Medical Group Pte. Ltd. In April 2025, our Group completed the acquisition of Bethesda Medical Pte. Ltd. and Oasis Medical Clinic Pte. Ltd., which became our subsidiaries. We additionally incorporated our new subsidiary Basel Medflow Pte. Ltd. in May 2025.

**2.** **Summary of significant accounting policies** 

**2.1** **Compliance with International Financial Reporting Standards ("IFRS")** 

The consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting Standards ("IFRS") and interpretations issued by the IFRS Interpretations Committee ("IFRS IC") applicable to companies reporting under IFRS. The financial statements comply with IFRS as issued by the International Accounting Standards Board ("IASB").

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**2.** **Summary of significant accounting policies (Continued)** 

The accounting policies applied for the interim consolidated financial statements for the six months ended December 31, 2024 and 2023 are consistent with those of the audited consolidated financial statements for the years ended June 30, 2024 and, 2023, as described in those audited consolidated financial statements, except for the adoption of any new and amended International Financial Reporting Standards ("IFRS") effective after the year ended June 30, 2024 which are relevant to the preparation of this interim condensed consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2** **New and amended standards adopted by the Group** 

The Group has applied the following amendments for the first time for their annual reporting period commencing July 1, 2024:

● Classification of Liabilities as Current or Non-current and Non-current liabilities with covenants – Amendments to IAS 1;

● Lease Liability in Sale and Leaseback – Amendments to IFRS 16; and

● Supplier Finance Arrangements – Amendments to IAS 7 and IFRS 7.

The amendments listed above did not have any impact on the amounts recognized in prior periods and are not expected to significantly affect the current or future periods.

**2.3** **New standards and interpretations not yet adopted** 

Certain new accounting standards, amendments to accounting standards and interpretations have been published that are not mandatory for December 31, 2024 reporting periods and have not been early adopted by the Group. These standards, amendments or interpretations are not expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions.

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**2.** **Summary of significant accounting policies (Continued)** 

**2.4** **Revenue from contracts with customers** 

The Group is in the business of providing medical services to patients. Revenue from contracts with customers is recognized when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods or services. Revenue is presented net of goods and services tax, rebates, and discounts.

Revenue from the rendering of medical services is recognized at the point in time when the entity satisfies the performance obligation by transferring a promised good or service to the customer, which is when the customer obtains control of the good or service. This is generally when the significant acts have been completed, ie, upon the completion of consultations, clinical treatments, medical tests and operations. The Group considers whether there are other promises in the contract that are separate performance obligations to which a portion of the transaction price needs to be allocated. The amount of revenue recognized is the amount allocated to the satisfied performance obligation.

Transaction price is the amount of consideration in the contract to which the Group expects to be entitled in exchange for transferring the promised goods or services. In determining the transaction price for the rendering of medical services the Group considers the effects of variable consideration. Contracts with customers normally does not include any contractual adjustment such as right of return, volume discount etc. In rare circumstances where consideration is variable, the Group estimates the amount of consideration to which it will be entitled in exchange for rendering of service to the customer. The variable consideration is estimated at contract inception and constrained until it is highly probable that a significant revenue reversal in the amount of cumulative revenue recognized will not occur when the associated uncertainty with the variable consideration is subsequently resolved.

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**2.** **Summary of significant accounting policies (Continued)** 

**2.5** **Segment reporting** 

Operating segments are reported in a manner consistent with the Group's internal organizational structure as well as information about geographical areas, business segments and major clients in the consolidated financial statements for detailing the Group's business segments. Based on the criteria established, the Group's chief operating decision maker ("CODM") has been identified as the Chief Executive Officer, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Group.

As a whole and hence, the Group has only one reportable segment. The Group does not distinguish between markets or segments for the purpose of internal reporting. As the Group's long-lived assets are substantially located in Singapore, no geographical segments are presented.

**2.6** **Government grants** 

Grants from the government are recognized as a receivable at their fair value when there is reasonable assurance that the grant will be received and the Group will comply with all the attached conditions.

Government grants receivable are recognized as income over the periods necessary to match them with the related costs which they are intended to compensate, on a systematic basis. Government grants relating to expenses are shown separately as other income.

Government grants relating to assets are deducted against the carrying amount of the assets.

**2.7** **Group accounting** 

(a) Subsidiaries

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(i)* *Consolidation* 

Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date on that control ceases.

In preparing the consolidated financial statements, transactions, balances and unrealized gains on transactions between group entities are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment indicator of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. Deferred tax relief on unrealized intra-Group profit is accounted for only to the extent that it is considered recoverable.

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**2.** **Summary of significant accounting policies (Continued)** 

**2.7** **Group accounting (Continued)** 

(a) Subsidiaries
 (Continued)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(i)* *Consolidation* (Continued)

Non-controlling interests comprise the portion of a subsidiaries' net results of operations and its net assets, which is attributable to the interests that are not owned directly or indirectly by the equity holders of the Group. They are shown separately in the consolidated statement of profit or loss and other comprehensive income, statement of changes in equity, and statement of financial position. Total comprehensive income is attributed to the non-controlling interests based on their respective interests in a Subsidiaries, even if this results in the non-controlling interests having a deficit balance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(ii)* *Acquisitions* 

The acquisition method of accounting is used to account for business combinations entered into by the Group.

The consideration transferred for the acquisition of a subsidiary or business comprises the fair value of the assets transferred, the liabilities incurred and the equity interests issued by the Group. The consideration transferred also includes any contingent consideration arrangement and any pre-existing equity interest in the subsidiaries measured at their fair values at the acquisition date.

The fair value of contingent consideration liabilities is reassessed at each balance sheet date with changes recognized in the income statement. Payments of contingent consideration reduce the balance sheet liability and as a result are not recorded in the income statement. The part of each payment relating to the original estimate of the fair value of the contingent consideration on acquisition is reported within investing activities in the cash flow statement and the part of each payment relating to the increase in the liability since the acquisition date is reported within operating cash flows.

Where the consideration transferred, together with the noncontrolling interest, exceeds the fair value of the net assets, liabilities and contingent liabilities acquired, the excess is recorded as goodwill. The costs of effecting an acquisition are charged to the income statement in the period in which they are incurred.

Goodwill is capitalized as a separate item in the case of subsidiaries and as part of the cost of investment in the case of joint ventures and associates. Goodwill is denominated in the currency of the operation acquired.

Where the cost of acquisition is below the Group's interest in the net assets acquired, the difference is recognized directly in the income statement.

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**2.** **Summary of significant accounting policies (Continued)** 

**2.7** **Group accounting (Continued)** 

(a) Subsidiaries
 (Continued)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(ii)* *Acquisitions* (Continued)

Where not all of the equity of a subsidiary is acquired the noncontrolling interest is recognized either at fair value or at the non-controlling interest's share of the net assets of the subsidiary, on a case-by-case basis. Changes in the Group's ownership percentage of subsidiaries are accounted for within equity.

Acquisition-related costs are expensed as incurred.

Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured initially at their fair values at the acquisition date.

On an acquisition-by-acquisition basis, the Group recognizes any non-controlling interest in the acquiree at the date of acquisition either at fair value or at the non-controlling interest's proportionate share of the acquiree's identifiable net assets.

The excess of (a) the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the (b) fair value of the identifiable net assets acquired is recorded as goodwill.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(iii)* *Disposal* 

When a change in the Group's ownership interest in a subsidiary result in a loss of control over the subsidiary, the assets and liabilities of the subsidiary including any goodwill are derecognized. Amounts previously recognized in other comprehensive income in respect of that entity are also reclassified to profit or loss or transferred directly to retained earnings if required by a specific Standard.

Any retained equity interest in the entity is remeasured at fair value. The difference between the carrying amount of the retained interest at the date when control is lost and its fair value is recognized in profit or loss.

(b) Transactions
 with non-controlling interests

Changes in the Group's ownership interest in a subsidiary that do not result in a loss of control over the subsidiaries are accounted for as transactions with equity owners of the Company. Any difference between the change in the carrying amounts of the non-controlling interest and the fair value of the consideration paid or received is recognized within equity attributable to the equity holders of the Company.

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**2.** **Summary of significant accounting policies (Continued)** 

**2.8** **Property and equipment** 

All items of property and equipment are initially recorded at cost. Subsequent to recognition, property and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses. The cost of property and equipment includes its purchase price and any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Dismantlement, removal or restoration costs are included as part of the cost of property and equipment if the obligation for dismantlement, removal or restoration is incurred as a consequence of acquiring or using the property and equipment.

Depreciation is calculated using the straight-line method to allocate depreciable amounts over their estimated useful lives. The estimated useful lives are as follows:

---

| | |
|:---|:---|
|  | Useful lives |
| Machinery | 3 years |
| Furniture and Fittings | 3 years |
| Medical equipment | 3 years |
| Renovation | 5 years |
| Air conditioner | 3 years |
| Computer and office equipment | 3 years |

---

The residual values, estimated useful lives and depreciation method of property and equipment are reviewed, and adjusted prospectively, if appropriate.

Fully depreciated assets are retained in the consolidated financial statements until they are no longer in use.

An item of property and equipment is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss on derecognition of the asset is included in profit or loss in the year the asset is derecognized.

Subsequent expenditure relating to property and equipment that has already been recognized is added to the carrying amount of the asset only when it is probable that future economic benefits associated with the item will flow to the entity and the cost of the item can be measured reliably. All other repair and maintenance expenses are recognized in profit or loss when incurred.

On disposal of an item of property and equipment, the difference between the disposal proceeds and its carrying amount is recognized in profit or loss within "other losses". Any amount in revaluation reserve relating to that item is transferred to retained profits directly.

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**2**. **Summary of significant accounting policies (Continued)** 

**2.9** **Financial instruments** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Financial
 assets

<u>Initial recognition and measurement</u>

Financial assets are recognized when, and only when the entity becomes party to the contractual provisions of the instruments.

At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss (FVPL), transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at FVPL are expensed in profit or loss.

Trade receivables are measured at the amount of consideration to which the Group expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third party, if the trade receivables do not contain a significant financing component at initial recognition.

<u>Subsequent measurement</u>

*Investments in debt instruments*

Subsequent measurement of debt instruments depends on the Group's business model for managing the asset and the contractual cash flow characteristics of the asset. The three measurement categories for classification of debt instruments are amortized cost, fair value through other comprehensive income (FVOCI) and FVPL. The Group only has debt instruments at amortized cost.

Financial assets that are held for the collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. Financial assets are measured at amortized cost using the effective interest method, less impairment. Gains and losses are recognized in profit or loss when the assets are derecognized or impaired, and through the amortisation process.

*Investments in equity instruments*

On initial recognition of an investment in equity instrument that is not held for trading, the Group may irrevocably elect to present subsequent changes in fair value in other comprehensive income which will not be reclassified subsequently to profit or loss. Dividends from such investments are to be recognized in profit or loss when the Group's right to receive payments is established. For investments in equity instruments which the Group has not elected to present subsequent changes in fair value in other comprehensive income, changes in fair value are recognized in profit or loss.

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**2.** **Summary of significant accounting policies (Continued)** 

**2.9** **Financial instruments (Continued)** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Financial
 assets (Continued)

<u>Derecognition</u>

A financial asset is derecognized where the contractual right to receive cash flows from the asset has expired. On derecognition of a financial asset in its entirety, the difference between the carrying amount and the sum of the consideration received and any cumulative gain or loss that had been recognized in other comprehensive income for debt instruments is recognized in profit or loss.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Financial
 liabilities

<u>Initial recognition and measurement</u>

Financial liabilities are recognized when, and only when, the Group becomes a party to the contractual provisions of the financial instrument. The Group determines the classification of its financial liabilities at initial recognition.

All financial liabilities are recognized initially at fair value plus in the case of financial liabilities not at FVPL, directly attributable transaction costs.

<u>Subsequent measurement</u>

After initial recognition, financial liabilities that are not carried at FVPL are subsequently measured at amortized cost using the effective interest method. Gains and losses are recognized in profit or loss when the liabilities are derecognized, and through the amortisation process.

*Borrowings*

 

Borrowings are presented as current liabilities unless the Group has an unconditional right to defer settlement for at least 12 months after the balance sheet date, in which case they are presented as non-current liabilities.

Borrowings are initially recognized at fair value (net of transaction costs) and subsequently carried at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption value is recognized in profit or loss over the period of the borrowings using the effective interest method.

 

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**2.** **Summary of significant accounting policies (Continued)** 

**2.9** **Financial instruments (Continued)** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Financial
 liabilities

<u>Derecognition</u>

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. On derecognition, the difference between the carrying amounts and the consideration paid is recognized in profit or loss.

**2.10** **Impairment of financial assets** 

The Group recognizes an allowance for expected credit losses ("ECLs") for all debt instruments not held at FVPL. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

ECLs are recognized in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is recognized for credit losses expected over the remaining life of the exposure, irrespective of timing of the default (a lifetime ECL).

For trade receivables, the Group applies a simplified approach in calculating ECLs. Therefore, the Group does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each reporting date. The Group has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment which could affect debtors' ability to pay.

The Group considers a financial asset in default when contractual payments are 30 days past due. However, in certain cases, the Group may also consider a financial asset to be in default when internal or external information indicates that the Group is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Group. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows.

**2.11** **Cash and cash equivalents** 

For the purpose of presentation in the consolidated statement of cash flows, cash and cash equivalents include cash on hand, deposits with financial institutions which are subject to an insignificant risk of change in value, and bank overdrafts. Bank overdrafts are presented as current borrowings on the balance sheet. For cash subjected to restriction, assessment is made on the economic substance of the restriction and whether they meet the definition of cash and cash equivalents.

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**2.** **Summary of significant accounting policies (Continued)** 

**2.12** **Inventories** 

Inventories are stated at the lower of cost and net realisable value, Cost is calculated using the weighted average basis and includes all costs of purchase and other costs incurred in bringing the inventories to their present location and condition. Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

Where necessary, allowance is provided for damaged, obsolete and slow-moving item to adjust the carrying value of inventories to the lower of cost and net realisable value.

**2.13** **Offsetting of financial instruments** 

Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously.

**2.14** **Provisions** 

Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and the amount of the obligation can be estimated reliably.

Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of economic resources will be required to settle the obligation, the provision is reversed. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, where appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

*Asset Retirement Obligation*

The Group recognizes a liability and capitalize an expense in property and equipment if the Group has a present legal or constructive obligation to reinstate the leased premises to their original state upon expiry of the lease. The provision is made based on management's best estimate of the expected costs to be incurred to reinstate the leased premises to their original state. The capitalized provision for reinstatement costs in property and equipment is amortized over the period of the lease.

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**2.** **Summary of significant accounting policies (Continued)** 

**2.15** **Impairment of non-financial assets** 

The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, (or, where applicable, when an annual impairment testing for an asset is required), the Group makes an estimate of the asset's recoverable amount.

The carrying values of all non-current assets are reviewed for impairment, either on a stand-alone basis or as part of a larger cash generating unit, when there is an indication that the assets might be impaired. Additionally, goodwill and intangible assets which are not yet available for use are tested for impairment annually.

Impairments of goodwill are not reversed.

An asset's recoverable amount is the higher of an asset's or cash-generating unit's fair value less costs of disposal and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or group of assets. Where the carrying amount of an asset or cash-generating unit exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

Impairment losses are recognized in profit or loss.

A previously recognized impairment loss is reversed only if there has been a change in the estimates used to determine the asset's recoverable amount since the last impairment loss was recognized. If that is the case, the carrying amount of the asset is increased to its recoverable amount. That increase cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized previously. Such reversal is recognized in profit or loss.

**2.16** **Taxes** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Current
 income tax

Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authority. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the reporting date.

Current income taxes are recognized in profit or loss except to the extent that the tax relates to items recognized outside profit or loss, either in other comprehensive income or directly in equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**2.** **Summary of significant accounting policies (Continued)** 

2.16 Taxes (Continued)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Deferred
 tax

Deferred tax is provided using the liability method on temporary differences at the end of the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current income tax assets against current income tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Goods
 and Services Tax ("GST")

Revenues, expenses and assets are recognized net of the amount of GST except:

● where the GST incurred on a purchase of assets or services is not recoverable from the taxation authority, in which case the GST is recognized as part of the cost of acquisition of the asset or as part of the expense item as applicable; and

● receivables and payables that are stated with the amount of GST included.

The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the statement of financial position.

**2.17** **Leases** 

The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As
 lessee

The Group applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Group recognizes lease liabilities representing the obligations to make lease payments and right-of-use assets representing the right to use the underlying leased assets.

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**2.** **Summary of significant accounting policies (Continued)** 

**2.17** **Leases (Continued)** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As
 lessee (Continued)

<u>Right-of-use assets</u>

The Group recognizes right-of-use assets at the commencement date of the lease (i.e. the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets.

If ownership of the leased asset transfers to the Group at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset. The right-of-use assets are also subject to impairment. The accounting policy for impairment is disclosed in Note 2.15.

The Group's right-of-use assets are presented in Note 9.

<u>Lease liabilities</u>

At the commencement date of the lease, the Group recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties for terminating the lease, if the lease term reflects the Group exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognized as expenses (unless they are incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Group uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g. changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset.

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**2.** **Summary of significant accounting policies (Continued)** 

**2.17** **Leases (Continued)** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As
 lessee (Continued)

<u>Lease liabilities</u> (Continued)

The Group's lease liabilities are included in borrowings (Note 15).

<u>Short-term leases and leases of low-value assets</u>

The Group applies the short-term lease recognition exemption to its short-term leases of office premises (i.e. those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). Lease payments on short-term leases are recognized as expense on a straight-line basis over the lease term. The Group has no lease of low-value assets for the year.

**2.18** **Currency translation** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(a)* *Functional and presentation currency* 

Items included in the financial statements of each entity in the Group are measured using the currency of the primary economic environment in which the entity operates ("functional currency"). The consolidated financial statements are presented in Singapore Dollar, which is the functional currency of the Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(b)* *Transactions and balances* 

Transactions in a currency other than the functional currency ("foreign currency") are translated into the functional currency using the exchange rates at the dates of the transactions. Currency exchange differences resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at the closing rates at the end of balance sheet date are recognized in profit or loss. Monetary items include primarily financial assets (other than equity investments), contract assets and financial liabilities.

When a foreign operation is disposed of or any loan forming part of the net investment of the foreign operation is repaid, a proportionate share of the accumulated currency translation differences is reclassified to profit or loss, as part of the gain or loss on disposal.

Foreign exchange gains and losses that relate to borrowings are presented in the income statement within "finance expense". All other foreign exchange gains and losses impacting profit or loss are presented in the income statement.

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**2.** **Summary of significant accounting policies (Continued)** 

**2.18** **Currency translation (Continued)** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(b)* *Transactions and balances* (Continued)

Non-monetary items measured at fair values in foreign currencies are translated using the exchange rates at the date when the fair values are determined.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(c)* *Translation of Group entities' financial statements* 

The results and financial position of all the Group entities (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) assets
 and liabilities are translated at the closing exchange rates at the reporting date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) income
 and expenses are translated at average exchange rates (unless the average is not a reasonable
 approximation of the cumulative effect of the rates prevailing on the transaction dates,
 in which case income and expenses are translated using the exchange rates at the dates of
 the transactions); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) all
 resulting currency translation differences are recognized in other comprehensive income and
 accumulated in the currency translation reserve. These currency translation differences are
 reclassified to profit or loss on disposal or partial disposal with loss of control of the
 foreign operation.

Goodwill and fair value adjustments arising on the acquisition of foreign operations are treated as assets and liabilities of the foreign operations and translated at the closing rates at the reporting date.

Translations of the consolidated balance sheets, consolidated statement of profit or loss and comprehensive income, consolidated statement of changes in shareholders' equity and consolidated statements of cash flows from S$ into US$ as of and for the period ended December 31, 2024 are solely for the convenience of the reader and were calculated at the rate of S$1 = US$1.3662, as set forth in the statistical release of the Federal Reserve System on December 31, 2024. No representation is made that the S$ amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2024, or at any other rate.

**2.19** **Employee benefits** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Defined
 contribution plans

The Group makes contributions to the Central Provident Fund scheme in Singapore, a defined contribution pension scheme. Contributions to defined contribution pension schemes are recognized as an expense in the period in which the related service is performed.

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**2.** **Summary of significant accounting policies (Continued)** 

**2.19** **Employee benefits (Continued)** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Short-term
 employee benefits

Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognized for the amount expected to be paid if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably.

**2.20** **Derivative financial instruments** 

A derivative financial instrument for which no hedge accounting is applied is initially recognized at its fair value on the date the contract is entered into and is subsequently carried at its fair value. Changes in its fair value are recognized in profit or loss. The Group does not apply hedge accounting for its derivative financial instruments.

**2.21** **Earnings per share** 

Basic earnings per share is computed by dividing net income attributable to the holders of ordinary shares by the weighted average number of ordinary shares outstanding during the period presented. Diluted income per share is calculated by dividing net income attributable to the holders of ordinary shares as adjusted for the effect of dilutive ordinary share equivalents, if any, by the weighted average number of ordinary shares and dilutive ordinary share equivalents outstanding during the period. However, ordinary share equivalents are not included in the denominator of the diluted earnings per share calculation when inclusion of such shares would be anti-dilutive, such as in a period in which a net loss is recorded.

**2.22** **Share capital** 

Proceeds from issuance of ordinary shares are recognized as share capital in equity. Incremental costs directly attributable to the issuance of ordinary shares are deducted against share capital.

**2.23** **Merger reserve** 

In a business combination under common control, any difference between the consideration paid and the carrying amounts of assets and liabilities received is presented as a change within equity and recorded under merger reserves.

**2.24** **Deferred Offering cost** 

The Company defers specific incremental costs directly attributable to an equity securities offering. These costs will be charged against the gross proceeds of the offering as a reduction of additional paid-in capital. If the Company does not complete the initial public offering, the deferred costs of the aborted offering will be deferred and charged against the proceeds of a subsequent offering.

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**2.** **Summary of significant accounting policies (Continued)** 

**2.24** **Deferred Offering cost (Continued)** 

Any costs related to an aborted offering will be expensed in the period in which the Company elects to abort the offering.

Prior to the completion of the initial public offering, deferred offering costs, which mainly consist of direct incremental legal, auditing, accounting, consulting, and other fees relating to the initial public offering, are capitalized on the consolidated balance sheets.

**2.25** **Dividend to Company's shareholders** 

Dividends to the Company's shareholders are recognized when the dividends are approved for payment.

**3**. **Significant accounting judgements and estimates** 

The preparation of the Group's financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the end of each reporting period. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of the asset or liability affected in the future periods.

**3.1** **Judgements made in applying accounting policies** 

Management is of the opinion that there are no significant judgements made in applying accounting estimates and policies that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

**3.2** **Key sources of estimation uncertainty** 

The key assumptions concerning the future and other key sources of estimation uncertainty at the end of the reporting period are discussed below. The Group based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising beyond the control of the Group. Such changes are reflected in the assumptions when they occur.

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

3. Significant
 accounting judgements and estimates (Continued)

**3.2** **Key sources of estimation uncertainty (Continued)** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** **Estimated useful lives of property and equipment (Continued)** 

The Group depreciates the property and equipment over their estimated useful lives after taking into account of their estimated residual values. The estimated useful life reflects management's estimate of the period that the Group intends to derive future economic benefits from the use of the Group's property and equipment. The residual value reflects management's estimated amount that the Group would currently obtain from the disposal of the asset, after deducting the estimated costs of disposal, as if the asset were already of the age and in the condition expected at the end of its useful life. Changes in the expected level of usage and technological developments could affect the economics, useful lives and the residual values of these assets which could then consequentially impact future depreciation charges. The carrying amounts of the Group's property and equipment as at December 31, 2024 and June 30, 2024 were disclosed in Note 10.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** **Inventory valuation method** 

Inventory write-down is made based on the current market conditions, historical experience and selling goods of similar nature. It could change significantly as a result of changes in market conditions. A review is made periodically on inventories for excess inventories, obsolescence and declines in net realisable value and an allowance is recorded against the inventory balances for any such declines. The realisable value represents the best estimate of the recoverable amount and is based on the most reliable evidence available and inherently involves estimates regarding the future expected realisable value. The carrying amount of the Company's inventories as at December 31, 2024 was S$99,308 (US$72,689) (June 30, 2024: S$72,030). If the future expected realisable value was lower by 10% of its carrying amount, the carrying amount of the Company's inventories would have been S$9,930 (US$7,268) (June 30, 2024: S$7,203) lower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** **Allowance for expected credit losses of trade receivables** 

The Group uses a provision matrix to calculate ECLs for trade receivables. The provision rates are based on days past due for groupings of various customer segments that have similar loss patterns.

The provision matrix is initially based on the Company's historical observed default rates. The Company will calibrate the matrix to adjust historical credit loss experience with forward-looking information. At every reporting date, historical default rates are updated and changes in the forward-looking estimates are analysed.

The assessment of the correlation between historical observed default rates, forecast economic conditions and ECLs is a significant estimate. The amount of ECLs is sensitive to changes in circumstances and of forecast economic conditions. The Company's historical credit loss experience and forecast of economic conditions may also not be representative of customer's actual default in the future. The information about the ECLs on the Company's trade receivables is disclosed in Note 22 (a). The carrying amount of the Company's trade receivables as at the end of each reporting period were disclosed in Note 12.

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**3.** **Significant accounting judgements and estimates (Continued)** 

**3.2** **Key sources of estimation uncertainty (Continued)** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)** **Allowance for expected credit losses of other receivables, amount due from a director and amount due from related parties** 

The Group assessed the latest performance and financial position of the counterparties, adjusted for the outlook of the industry in which the counterparties operate in, and concluded that there had been no significant increase in credit risk since initial recognition of the financial assets. Accordingly, the Group measured the impairment loss allowance using 12-month ECL and determined that the ECL is insignificant.

The carrying amount of the Group's other receivables as at December 31, 2024 were S$NIL (US$NIL) (June 30, 2024: S$213,644).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)** **Leases – estimating the incremental borrowing rate** 

The Group cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental borrowing rate to measure lease liabilities. The incremental borrowing rate is the rate of interest that the Group would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The incremental borrowing rate therefore reflects what the Group 'would have to pay', which requires estimation when no observable rates are available or when they need to be adjusted to reflect the terms and conditions of the lease. The Group estimates the incremental borrowing rate using observable inputs (such as market interest rates) when available and is required to make certain entity-specific estimates.

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**4**. **Revenue** 

---

| | | | |
|:---|:---|:---|:---|
|  | **July 1, 2024 to December 31, 2024** | **July 1, 2024 to December 31, 2024** | **July 1, 2023 to December 31, 2023** |
|  | **US$** | **S$** | **S$** |
| <u>Type of service</u> |  |  |  |
| Rendering of services – Medical services | 3684731 | 5034080 | 5088326 |
|  | 3684731 | 5034080 | 5088326 |
| <u>Timing of transfer of service</u> |  |  |  |
| At a point in time | 3684731 | 5034080 | 5088326 |
|  | 3684731 | 5034080 | 5088326 |

---

**5.** **Other income** 

---

| | | | |
|:---|:---|:---|:---|
|  | **July 1, 2024 to December 31, 2024** | **July 1, 2024 to December 31, 2024** | **July 1, 2023 to December 31, 2023** |
|  | **US$** | **S$** | **S$** |
| Government grant | 4833 | 6602 | 2245 |
| Interest income | 39777 | 54344 | 158357 |
| Other income | 217172 | 296701 | 828 |
|  | 261782 | 357647 | 161430 |

---

Other income pertains to the reversal of long-outstanding payables which are no longer considered due. The reversal was made after management confirmed that no obligation remains, as no claims or demands have been received from the creditors.

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**6.** **Finance cost** 

---

| | | | |
|:---|:---|:---|:---|
|  | **July 1, 2024 to December 31, 2024** | **July 1, 2024 to December 31, 2024** | **July 1, 2023 to December 31, 2023** |
|  | **US$** | **S$** | **S$** |
| Interest expense on: |  |  |  |
| &nbsp;&nbsp;&nbsp;- Bank borrowings | 62277 | 85083 | 84859 |
| &nbsp;&nbsp;&nbsp;- Lease liabilities | 9176 | 12536 | 11264 |
|  | 71453 | 97619 | 96123 |

---

**7.** **Profit before tax** 

Profit before tax has been arrived at after charging:

---

| | | | |
|:---|:---|:---|:---|
|  | **July 1, 2024 to December 31, 2024** | **July 1, 2024 to December 31, 2024** | **July 1, 2023 to December 31, 2023** |
|  | **US$** | **S$** | **S$** |
| Marketing and advertisement | 277540 | 379175 | 400576 |
| Legal and professional fees | 133118 | 181866 | 27558 |
| Insurance | 20579 | 28115 | 22481 |
| Transportation | 13173 | 17997 | 21837 |
| Short term lease expenses | 87835 | 120000 | 3179 |
| Depreciation of property and equipment | 15006 | 20501 | 15802 |
| Amortisation of right-of-use assets | 242254 | 330968 | 249318 |
| Employee benefit expenses |  |  |  |
| - Director's salaries and bonuses | 70953 | 96936 | 589 |
| - Employees' salaries and bonus | 1875551 | 2562377 | 1193537 |
| - Employees' CPF | 105588 | 144255 | 86694 |
| - Other staff expenses | 32187 | 43974 | 35503 |

---

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**8.** **Income tax expense** 

The major components of income tax expense recognized in profit or loss for the periods ended December 31, 2024 and 2023 were:

---

| | | | |
|:---|:---|:---|:---|
|  | **July 1, 2024**<br> **to December**<br> **31, 2024** | **July 1, 2024**<br> **to December**<br> **31, 2024** | **July 1, 2023**<br> **to December 31, 2023** |
|  | **US$** | **S$** | **S$** |
| Current income tax |  |  |  |
| - Current year | 284 | 388 | 611483 |
| - Overprovision in respect of prior years | - | - | - |
| Income tax expense recognized in profit or loss | 284 | 388 | 611483 |

---

<u>Relationship between tax expense and accounting profit</u>

A reconciliation between tax expense and the product of accounting profit multiplied by the applicable corporate tax rate for the financial periods ended December 31, 2024 and 2023 were as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **July 1, 2024 to December 31, 2024** | **July 1, 2024 to December 31, 2024** | **July 1, 2023 to December 31, 2023** |
|  | **US$** | **S$** | **S$** |
| (Loss)/Profit before tax | (66103) | (90311) | 1938059 |
| Income tax using the statutory tax rate of 17% (2023: 17%) | (11238) | (15353) | 329470 |
| Effects of: |  |  |  |
| - Non-deductible expenses |  |  | 52720 |
| - Income tax exemption |  |  | (69700) |
| - Deferred tax asset not recognized during the financial year |  |  | 229293 |
| - Others | 10954 | 14965 | 69700 |
| Income tax expense | 284 | 388 | 611483 |

---

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**9.** **Right of use assets** 

---

| | | | |
|:---|:---|:---|:---|
|  | **December**<br> **31, 2024** | **December**<br> **31, 2024** | **June 30,**<br> **2024<br> (Audited)** |
|  | **US$** | **S$** | **S$** |
| **Cost** |  |  |  |
| At beginning of financial period/year | 2015146 | 2753093 | 2753093 |
| Additions | 494028 | 674941 | - |
| At end of financial period/year | 2509174 | 3428034 | 2753093 |
| **Accumulated Depreciation** |  |  |  |
| At beginning of financial period/year | 1997975 | 2729633 | 2230998 |
| Depreciation | 242254 | 330968 | 498635 |
| At end of financial period/year | 2240229 | 3060601 | 2729633 |
| **Carrying amount** | 268945 | 367433 | 23460 |

---

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**10.** **Property and equipment** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | <br>**Machinery** | <br>**Furniture & Fittings** | **Medical equipment** | **Renovation** | <br>**Air conditioner** | **Computer & office equipment** | <br>**Total** |
|  | **S$** | **S$** | **S$** | **S$** | **S$** | **S$** | **S$** |
| **Cost** |  |  |  |  |  |  |  |
| At July 1, 2023 | 47226 | 100852 | 86724 | 405349 | 43727 | 350248 | 1034126 |
| Additions | - | - | - | - | - | 7920 | 7920 |
| At June 30, 2024 (Audited) | 47226 | 100852 | 86724 | 405349 | 43727 | 358168 | 1042046 |
| Additions | - | - | 2100 | - | - | 16256 | 18356 |
| At December 31, 2024 | 47226 | 100852 | 88824 | 405349 | 43727 | 374424 | 1060402 |
| **Accumulated depreciation** |  |  |  |  |  |  |  |
| At July 1, 2023 | 47226 | 100381 | 75645 | 363769 | 43727 | 346692 | 977440 |
| Depreciation | - | 283 | 5888 | 18431 | - | 5491 | 30093 |
| At June 30, 2024 (Audited) | 47226 | 100664 | 81533 | 382200 | 43727 | 352183 | 1007533 |
| Depreciation | - | 141 | 3054 | 9215 | - | 8091 | 20501 |
| At December 31, 2024 | 47226 | 100805 | 84587 | 391415 | 43727 | 360274 | 1028034 |
| **Net book values** |  |  |  |  |  |  |  |
| **At June 30, 2024 (Audited)** | - | 188 | 5191 | 23149 | - | 5985 | 34513 |
| **At December 31, 2024** | - | 47 | 4237 | 13934 | - | 14151 | 32368 |
| **US$** |  |  |  |  |  |  |  |
| **At December 31, 2024** | - | 34 | 3101 | 10199 | - | 10358 | 23692 |

---

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**11.** **Inventories** 

---

| | | | |
|:---|:---|:---|:---|
|  | **December**<br> **31, 2024** | **December**<br> **31, 2024** | **June 30,**<br> **2024<br> (Audited)** |
|  | **US$** | **S$** | **S$** |
| **Statement of financial position:** |  |  |  |
| Medicine,drugs and medical devices | 72689 | 99308 | 72030 |
| **Statement of comprehensive income:** |  |  |  |
| Inventories recognized as an expense in cost of sales | 158874 | 217054 | 637037 |

---

**12.** **Trade and other receivables** 

---

| | | | |
|:---|:---|:---|:---|
|  | **December**<br> **31, 2024** | **December**<br> **31, 2024** | **June 30,**<br> **2024<br> (Audited)** |
|  | **US$** | **S$** | **S$** |
| Trade receivables: |  |  |  |
| - third parties | 1377748 | 1882279 | 2133573 |
| Less: Allowance for expected credit loss | (337003) | (460413) | (460413) |
|  | 1040745 | 1421866 | 1673160 |
| Deposits | 2496762 | 3411076 | 90252 |
| Prepayments | 138419 | 189108 | 28163 |
| Other receivables: |  |  |  |
| - third parties | - | - | 213644 |
|  | 3675926 | 5022050 | 2005219 |

---

Trade receivables are unsecured, non-interest bearing and are generally on 30 days terms (June 30, 2024: 30 days).

There is no other class of financial assets that is past due and/or impaired except for trade receivables.

Trade and other receivables are denominated in Singapore Dollar.

The deposits include payments made for custodian services amounting to S$2,300,375 (US$1,683,776), which are classified as non-financial assets and earmarked for use in upcoming mergers and acquisitions within the Singapore market.

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**12.** **Trade and other receivables (Continued)** 

The movement in allowance for expected credit losses of trade receivables computed based on lifetime ECL was as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **December**<br> **31, 2024** | **December**<br> **31, 2024** | **June 30,**<br> **2024<br> (Audited)** |
|  | **US$** | **S$** | **S$** |
| Beginning of financial period/year | 337003 | 460413 | 465986 |
| Allowance for expected credit losses |  |  | 50168 |
| Less: Reversal of allowance for expected credit losses | - | - | (55741) |
| End of financial period/year | 337003 | 460413 | 460413 |

---

**13.** **Cash and cash equivalents** 

---

| | | | |
|:---|:---|:---|:---|
|  | **December**<br> **31, 2024** | **December**<br> **31, 2024** | **June 30,**<br> **2024<br> (Audited)** |
|  | **US$** | **S$** | **S$** |
| Cash on hand | 296 | 405 | 1500 |
| Cash at banks | 5449579 | 7445214 | 1949553 |
|  | 5449875 | 7445619 | 1951053 |

---

**14.** **Amount due from/to related parties** 

*Amount due from related parties*

 

On June 27, 2023, Rainforest Capital VCC (the "Purchaser") entered into a sale and purchase agreement with Dr. Kevin Yip (the "Seller") for the transfer of the entire share capital of Basel Medical Group Pte. Ltd. (F.K.A Singmed Specialists Pte. Ltd.) According to the sales and purchase agreement, the Provisional Consideration shall be an aggregate amount equivalent to the sum of S$24,000,000 (US$18,191,465) and the Agreed Amount. The Agreed Amount is computed based on the sum of the net amount due from Singmed Investment Pte. Ltd to the Group and the net amount due from a former director (Dr. Kevin Yip) to the Group less the net assets of the Group as at June 30, 2023. The Agreed Amount will be a negative figure if the sum of the net amount due from Singmed Investment Pte. Ltd to the Group and the net amount due from a director to the Group is more than the net assets of the Group as of June 30, 2023. The Agreed Amount was initially estimated to be negative S$5,000,000.

On July 1, 2023, S$11,800,000 (US$8,944,137) was paid from the Purchaser to the Seller. This was computed based on 70% of S$24,000,000 and Estimated Agreed Amount of negative S$5,000,000. The Final Consideration will be paid within 30 days from the issuance of the "FY2024 Audited Accounts" by the Group's auditors.

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**14.** **Amount due from/to related parties (continued)** 

As part of the agreement on the purchase consideration between Rainforest Capital VCC as the buyer and Dr. Kevin Yip as the seller for the purchase of the shares of Singmed Specialists Pte. Ltd. under the sale and purchase agreement dated June 27, 2023, the outstanding receivables due from director, Dr. Kevin Yip, and related party, Singmed Investment Pte Ltd, have been assigned to and are borne by Rainforest Capital VCC. On August 23, 2024, Rainforest Capital VCC entered into a deed of undertaking (the "Repayment Deed") with the Group, undertaking to fully transfer and pay to the Group, any and all outstanding receivables that is owed by Singmed Investment Pte Ltd and Dr. Kevin Yip to the Group, being S$11,877,624 (the "Loan Amount"), to the Group by September 2024.

The following table sets out the amounts owed to the Group by Rainforest Capital VCC, which has assumed the obligations of Dr. Kevin Yip and Singmed Investment Pte Ltd pursuant to the Repayment Deed as of the date indicated below.

---

| | | |
|:---|:---|:---|
|  | June 30,<br> 2023 | June 30, <br>2023 |
|  | US$ | S$ |
| Amount due from a director | 976453 | 1320457 |
| Amount due from related parties | 7806823 | 10557167 |
| Total | 8783276 | 11877624 |

---

For the financial year ended June 30, 2024, the Group incurred an aggregate sum of S$900,000 (US$682,180) for professional medical practitioner salaries owed to Dr. Kevin Yip for his services from July 1, 2023 to June 30, 2024. Such sum of US$682,180 will be set-off by the Group against the amounts owed to the Group by Dr. Kevin Yip and Singmed Investment Pte Ltd. Thus, following such set-off, as of June 30, 2024, total amounts due from Dr. Kevin Yip and Singmed Investment Pte Ltd is estimated to amount to US$8,101,096.

In addition, Rainforest Capital VCC has paid an aggregate sum of US$599,730 for the period from July 1, 2023 to June 30, 2024 on behalf of the Group for professional fees incurred in connection with our initial public offering. On February 27, 2024, July 22, 2024 and July 31, 2024, Rainforest Capital VCC also repaid a sum of US$20,000, US$630,000 and US$4,048,000 respectively to the Group to partially settle the amounts due from a director and related parties. Finally, Rainforest Capital VCC has paid US$750,000 on August 15, 2024, US$750,000 on August 16, 2024, US$651,000 on September 20, 2024 and a final US$652,366 on September 23, 2024 pursuant to the Repayment Deed as final settlement of such amounts owed.

Following such repayment, the full amount due from a former director and Singmed Investment Pte Ltd that has been assigned to Rainforest Capital VCC, has been fully paid off.

*Amount due to related parties*

 

Amount due to related parties consist of amount due to shareholders. The amounts are non-trade in nature, unsecured, interest-bearing, repayable on demand and is to be settled in cash.

Amount due to a related parties represents advances provided to cover various business expenses and other expenditures incurred by the Group in the ordinary course of business.

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**15.** **Borrowings** 

---

| | | | |
|:---|:---|:---|:---|
|  | **December**<br> **31, 2024** | **December**<br> **31, 2024** | **June 30,**<br> **2024<br> (Audited)**  |
|  | **US$** | **S$** | **S$** |
| **Current:** |  |  |  |
| - Lease liabilities | 271978 | 371577 | 28500 |
| - Bank borrowings | 2927829 | 4000000 | 2677856 |
|  | 3199807 | 4371577 | 2706356 |
| **Non-current:** |  |  |  |
| - Lease liabilities |  |  |  |
| - Bank borrowings | - | - | 1583434 |
|  | - | - | 1583434 |
|  | 3199807 | 4371577 | 4289790 |

---

The breakdown of borrowings are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **December**<br> **31, 2024** | **December**<br> **31, 2024** | **June 30,**<br> **2024<br> (Audited)** |
|  | **US$** | **S$** | **S$** |
| Term loan #1 |  |  | 206695 |
| Term loan #2 |  |  | 280233 |
| Term loan #3 |  |  | 178565 |
| Term loan #4 |  |  | 195299 |
| Term loan #6 |  |  | 531708 |
| Term loan #7 |  |  | 280239 |
| Term loan #9 |  |  | 322818 |
| Term loan #10 |  |  | 1573744 |
| Term loan #11 |  |  | 691989 |
| Term loan #12 | 2927829 | 4000000 | - |
|  | 2927829 | 4000000 | 4261290 |

---

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**15.** **Borrowings (Continued)** 

The details of borrowings are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Term loan** | **Facility amount** | **Facility amount** | **Effective interest rate** | **Maturity date** |
|  |  |  | **% p.a.** |  |
| Term loan #1 | S$ | 600000 | 2.50% | October 2025 |
| Term loan #2 | S$ | 1000000 | 2.75% | October 2025 |
| Term loan #3 | S$ | 600000 | 2.75% | November 2025 |
| Term loan #4 | S$ | 700000 | 2.50% | November 2025 |
| Term loan #6 | S$ | 1400000 | 2.25% | April 2026 |
| Term loan #7 | S$ | 1000000 | 2.75% | October 2025 |
| Term loan #9 | S$ | 850000 | 2.25% | April 2026 |
| Term loan #10 | S$ | 600000 | 2.75% | November 2025 |
|  | S$ | 1000000 | 3.00% | November 2025 |
|  | S$ | 500000 | 2.50% | March 2026 |
|  | S$ | 529890 | 1.53% | December 2035 |
|  | S$ | 501670 | 1.53% | December 2035 |
| Term loan #11 | S$ | 400000 | 2.25% | January 2026 |
|  | S$ | 1500000 | 2.50% | December 2025 |
|  | S$ | 178000 | 3.00% | May 2024 |
| Term loan #12 | S$ | 4000000 | 4.30% | One-month term, upon maturity |

---

**<u>Term loan #1</u>**

The loan is secured by joint and several guarantees by the Group's former directors, Kevin Yip Man Hing and Joanna Lin.

The loan was fully settled during the second half of 2024, and as at December 31, 2024, there are no outstanding bank borrowings.

**<u>Term loan #2</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The loan is secured by joint and several guarantees by the Group's former directors, Kevin Yip Man Hing and Joanna Lin.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Group is bound by the following loan covenants in form and substance satisfactory to the bank

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) So
 long as any sum remains or may be outstanding under the banking facilities, there shall be
 no direct or indirect change of control in the shareholding or management of the Group. As
 determined by the Bank in its absolute discretion. In the event of a change, prior written
 consent from the Bank shall be required and the Bank shall be entitled to imposed such terms
 and condition as it deems fit, including the levying of a charge equivalent to the prepayment
 fee or such other amount as may be advised by the Bank.

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**15.** **Borrowings (Continued)** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As
 long as the banking facilities remain outstanding, the Group agree and undertake that no
 repayment (direct or indirectly) will be made to the Group's shareholders and/or directors
 in respect of any loan and/or advances granted by such shareholders and/or directors to the
 Group without prior written consent from the Bank. In this connection, the Group represent
 and warrant to the Bank that all loans and advances from shareholder/director to Group shall
 be subordinated to the banking facilities granted by the Bank.

The loan was fully settled during the second half of 2024, and as at December 31, 2024, there are no outstanding bank borrowings.

**<u>Term loan #3</u>**

The loan is not secured.

The loan was fully settled during the second half of 2024, and as at December 31, 2024, there are no outstanding bank borrowings.

**<u>Term loan #4</u>**

The loan is secured by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Joint
 and several guarantee by the Group's former directors, Kevin Yip Man Hing and Joanna
 Lin;

(b) Corporate
 guarantor from related company, Basel Medical Group Pte. Ltd. (F.K.A Singmed Specialists Pte Ltd);

(c) Government
 guarantee; and

(d) Enterprise
 Singapore Holdings

The loan was fully settled during the second half of 2024, and as at December 31, 2024, there are no outstanding bank borrowings.

**<u>Term loan #6</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The
 loan is secured by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Personal
 guarantee by the Group's former director, Kevin Yip Man Hing; and

(b) Corporate
 guarantor from related company, SSOC Pte. Ltd. and SSOS Pte. Ltd.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The
 Group is bound by the following loan covenants in form and substance satisfactory to the
 bank

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Group shall at all times maintain a Net Worth of not less than S$800,000. "Net Worth"
 means the aggregate of the paid -up capital, revenue reserves/retained earnings and capital
 reserves.

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**15.** **Borrowings (Continued)** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Group shall at all times maintain a minimum Debt Service Coverage Ratio of 1.25 times. "Debt
 Service Coverage Ratio" is defined as cash profit after tax, plus interest payable,
 divided by the interest and principal payable in the same financial year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The
 Group shall at all times during the tenor of the FS Facility(ies) meet the eligibility criteria
 (including those on shareholdings and ownership) applicable for the Enterprise Financing
 Scheme as stipulated from time to time by Enterprise Singapore, unless Enterprise Singapore's
 prior written approval for any deviation therefrom is obtained.

There was a breach of covenant 2(b) as described above, which entitled the bank to request immediate repayment of the outstanding balance of S$531,708 as at June 30, 2024. As a result, the loan was classified as a current liability as at June 30, 2024. However, the bank did not demand early repayment.

The loan was fully settled during the second half of 2024, and as at December 31, 2024, there are no outstanding bank borrowings.

**<u>Term loan #7</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The
 loan is secured by joint and several guarantees for S$1,000,000 by the Group's former
 directors, Kevin Yip Man Hing and Joanna Lin.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The
 Group is bound by the following loan covenants in form and substance satisfactory to the
 bank

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) So
 long as any sum remains or may be outstanding under the banking facilities, there shall be
 no direct or indirect change of control in the shareholding or management of the Group. As
 determined by the Bank in its absolute discretion. In the event of a change, prior written
 consent from the Bank shall be required and the Bank shall be entitled to imposed such terms
 and condition as it deems fit, including the levying of a charge equivalent to the prepayment
 fee or such other amount as may be advised by the Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As
 long as the banking facilities remain outstanding, the Group agree and undertake that no
 repayment (direct or indirectly) will be made to the Group's shareholders and/or directors
 in respect of any loan and/or advances granted by such shareholders and/or directors to the
 Group without prior written consent from the Bank. In this connection, the Group represent
 and warrant to the Bank that all loans and advances from shareholder/director to Group shall
 be subordinated to the banking facilities granted by the Bank.

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**15.** **Borrowings (Continued)** 

**<u>Term loan #9</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The
 loan is secured by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Personal
 guarantee by the Group's former director, Kevin Yip Man Hing.; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Corporate
 guarantor from related companies, SSOC Pte. Ltd. and SSOS Pte. Ltd.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The
 Group is bound by the following loan covenants in form and substance satisfactory to the
 bank

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Group shall at all times maintain a Net Worth of not less than S$500,000. "Net Worth"
 means the aggregate of the paid -up capital, revenue reserves/retained earnings and capital
 reserves.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Group shall at all times maintain a minimum Debt Service Coverage Ratio of 1.25 times. "Debt
 Service Coverage Ratio" is defined as cash profit after tax, plus interest payable,
 divided by the interest and principal payable in the same financial year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The
 Group shall at all times during the tenor of the FS Facility(ies) meet the eligibility criteria
 (including those on shareholdings and ownership) applicable for the Enterprise Financing
 Scheme as stipulated from time to time by Enterprise Singapore, unless Enterprise Singapore's
 prior written approval for any deviation therefrom is obtained.

There was a breach of covenant 2(b) as described above, which entitled the bank to request immediate repayment of the outstanding balance of S$322,218 as at June 30, 2024. As a result, the loan was classified as a current liability as at June 30, 2024. However, the bank did not demand early repayment.

The loan was fully settled during the second half of 2024, and as at December 31, 2024, there are no outstanding bank borrowings.

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**15.** **Borrowings (Continued)** 

**<u>Term loan #10</u>**

1) Facility amount SGD600,000

The loan is secured by joint and several guarantees by the Group's former directors, Kevin Yip Man Hing and Joanna Lin.

2) Facility amount SGD1,000,000

The loan is secured by joint and several guarantees by the Group's former directors, Kevin Yip Man Hing and Joanna Lin.

3) Facility amount SGD500,000

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The
 loan is secured by joint and several guarantees by the Group's former director, Kevin
 Yip Man Hing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The
 Group is bound by the following loan covenants in form and substance satisfactory to the
 bank

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Group shall maintain a Minimum Tangible Networth (TNW") of not less than S$250,000
 during the tenor of the facility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Group shall use CIMB Bank Berhad as its main operating bank account (to handle its payment
 and collections).

The Group has complied with the covenants.

4) Facility amount SGD529,890

The loan is secured by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Joint
 and several guarantees by the Group's former directors, Kevin Yip Man Hing and Joanna
 Lin.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Legal
 charges over office units belonging to Group's former director, Kevin Yip Man Hing.

5) Facility amount SGD501,670

The loan is secured by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Joint
 and several guarantees by the Group's former directors, Kevin Yip Man Hing and Joanna
 Lin.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Legal
 charges over office units belonging to Group's former director, Kevin Yip Man Hing.

The loan was fully settled during the second half of 2024, and as at December 31, 2024, there are no outstanding bank borrowings.

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**15.** **Borrowings (Continued)** 

**<u>Term loan #11</u>**

1) Facility amount SGD400,000

The loan is secured by joint and several guarantees by the Group's former directors, Kevin Yip Man Hing and Joanna Lin.

2) Facility amount SGD1,500,000

The loan is secured by joint and several guarantees by the Group's former director, Kevin Yip Man Hing and government guarantee, Enterprise Singapore Holdings.

The Group shall maintain a minimum Tangible Networth of not less that S$750,000 at all times during the tenor of the Facility.

The Group has complied with the covenant.

All of the Company's loan facilities are for the purpose of financing the Company's working capital requirement.

Borrowings are denominated in Singapore Dollar.

The loan was fully settled during the second half of 2024, and as at December 31, 2024, there are no outstanding bank borrowings.

Subsequently, the Company obtained a new term loan, referred to as Term Loan #12.

**<u>Term loan #12</u>**

Citibank has made a short-term credit facility to the Company's subsidiary, Basel Medical Group Pte Ltd. Amount has been fully repaid in March 2025.

All of the Group's loan facilities is for the purpose of financing the Group's working capital requirement.

Borrowings are denominated in Singapore Dollar.

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**15.** **Borrowings (Continued)** 

A reconciliation of liabilities arising from financing activities is as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | | **Non-cash changes** | **Non-cash changes** | **Non-cash changes** | |
|  | **Beginning**<br>**of financial**<br> **period** | <br>**Cash**<br> **flows** |<br>**Proceed from bank**<br> **borrowings** | <br>**Addition** | **Accretion of** <br> **interests** | **Other** |<br>**End of financial**<br> **period** |
|  | **US$** | **US$** | **US$** | **US$** | **US$** | **US$** | **US$** |
| **December 31, 2024** |  |  |  |  |  |  |  |
| **Liabilities** |  |  |  |  |  |  |  |
| Lease liabilities |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;- Current | 20861 | (252086) |  | 494027 | 9176 |  | 271978 |
| &nbsp;&nbsp;&nbsp;- Non-current |  | **-** | **-** | **-** | **-** |  |  |
| Bank borrowings |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;- Current | 1960076 | (1960076) | 2927829 | **-** |  |  | 2927829 |
| &nbsp;&nbsp;&nbsp;- Non-current | 1159006 | (1159006) | **-** | **-** | - |  | - |
|  | 3139943 | (3371168) | 2927829 | 494028 | 9176 |  | 3199807 |

---

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**15.** **Borrowings (Continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | | **Non-cash changes** | **Non-cash changes** | **Non-cash changes** | |
|  |<br>**Beginning of financial period/year** | <br>**Cash flows** |<br>**Proceed from bank borrowings** | <br>**Addition** | **Accretion of interests** | **Other** |<br>**End of financial**<br> **period/year** |
|  | **S$** | **S$** | **S$** | **S$** | **S$** | **S$** | **S$** |
| **December 31, 2024** |  |  |  |  |  |  |  |
| **Liabilities** |  |  |  |  |  |  |  |
| Lease liabilities |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;- Current | 28500 | (344400) |  | 674941 | 12536 |  | 371577 |
| &nbsp;&nbsp;&nbsp;- Non-current |  | **-** | **-** | **-** | **-** |  |  |
| Bank borrowings |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;- Current | 2677856 | (2762939) | 4000000 | **-** | 85083 |  | 4000000 |
| &nbsp;&nbsp;&nbsp;- Non-current | 1583434 | (1583434) | **-** | **-** | - | - | - |
|  | 4289790 | (4690773) | 4000000 | 674941 | 97619 | - | 4371577 |
| **June 30, 2024 (Audited)** |  |  |  |  |  |  |  |
| **Liabilities** |  |  |  |  |  |  |  |
| Lease liabilities |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;- Current | 566039 | (553000) |  |  | 15461 |  | 28500 |
| &nbsp;&nbsp;&nbsp;- Non-current | 28500 | **-** | **-** | **-** | **-** | (28500) |  |
| Bank borrowings |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;- Current | 3223150 | (2517707) |  | **-** | 160777 | 1811636 | 2677856 |
| &nbsp;&nbsp;&nbsp;- Non-current | 3395070 | **-** | **-** | **-** | - | (1811636) | 1583434 |
|  | 7212759 | (3070707) | - | - | 176238 | - | 4289790 |

---

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**16.** **Trade and other payables** 

---

| | | | |
|:---|:---|:---|:---|
|  | **December**<br> **31, 2024** | **December**<br> **31, 2024** | **June 30,**<br> **2024<br> (Audited)** |
|  | **US$** | **S$** | **S$** |
| Trade payables |  |  |  |
| - third parties | 861999 | 1177663 | 829324 |
| Accruals | 526778 | 719684 | 1074868 |
| GST payables | 111185 | 151492 | 391330 |
| Other payables |  |  |  |
| - third parties | - | - | 280427 |
|  | 1499962 | 2048839 | 2575949 |

---

Trade payables are non-interest bearing and are normally settled on 30 to 90 days terms (June 30, 2024: 30 to 90 days).

Other payables are non-trade related, unsecured, non-interest bearing, repayable on demand and are to be settled in cash.

Trade and other payables are denominated in Singapore Dollar.

**17.** **Amount due to a former director** 

Amount due to a former director is denominated in Singapore Dollar. Please refer to Note 14 for the terms of the sale and purchase agreement between Rainforest Capital VCC and Dr. Kevin Yip, a former director.

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**18.** **Share capital** 

The Company was established under the laws of BVI on August 10, 2023 and is authorized to issue a maximum of 1,000,000,000 shares divided into two classes as follows: 500,000,000 ordinary shares with no par value each (the "Ordinary Shares"); and 500,000,000 preference shares with no par value each (the "Preference Shares"). As at December 31, 2024, the Company had an issued share capital of 16,250,000 ordinary shares amounting to S$24,455,178 (US$18,362,500) at a subscription price of US$1.13 per share. As at May 31, 2025, the Company had an aggregate of 18,785,750 ordinary shares issued and outstanding.

The holders of ordinary shares are entitled to receive dividends as and when declared by the Group. All ordinary shares carry one vote per share without restrictions. The ordinary shares have no par value.

**19.** **Leases** 

<u>Company as a lessee</u>

The Company has lease contracts for clinics. The Company's obligations under these leases are secured by the lessor's title to the leased assets. The Company is restricted from assigning and subleasing the leased assets.

The Company also has certain leases of machinery with lease terms of 12 months or less and leases of office equipment with low value. The Company applies the 'short-term lease' and 'lease of low-value assets' recognition exemptions for these leases.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** **Carrying amounts of right-of-use assets under leasing arrangements** 

The carrying amounts of right-of-use assets under leasing arrangements are disclosed in Note 9.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** **Lease liabilities** 

The carrying amount of lease liabilities (included under borrowings) and the movements during the year are disclosed in Note 15 and the maturity analysis of lease liabilities is disclosed in Note 22 under liquidity risk. The Company adopt 5% as weighted average borrowings rate to determine the present value of the lease payments. The weighted average remaining life of the lease was 1 year.

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**19.** **Leases (Continued)** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** **Amounts recognized in profit or loss** 

---

| | | | |
|:---|:---|:---|:---|
|  | **July 1, 2024 to December 31, 2024** | **July 1, 2024 to December 31, 2024** | **July 1, 2023 to December 31,** <br> **2023** |
|  | **US$** | **S$** | **S$** |
| Amortisation of right-of-use assets | 242254 | 330968 | 249318 |
| Interest expense on lease liabilities | 9176 | 12536 | 11264 |
| Lease expense not capitalized in lease liabilities: |  |  |  |
| - Expense relating to short-term leases | 87835 | 120000 | 3179 |
| Total amount recognized in profit or loss | 339265 | 463504 | 263761 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)** **Total cash outflow** 

The Company had total cash outflows for leases of S$331,864 (US$242,910) (June 30, 2024: S$566,039).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)** **Extension options** 

The Company has several lease contracts that include extension options. These options are negotiated by management to provide flexibility in managing the leased-asset portfolio and align with the Company's business needs. Management exercises significant judgement in determining whether these extension options are reasonably certain to be exercised.

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**20.** **Significant related party transactions** 

In addition to the related party information disclosed elsewhere in the consolidated financial statements, the following transactions with related parties took place at terms agreed between the parties during the financial period:

---

| | | | |
|:---|:---|:---|:---|
|  | **July 1,**<br> **2024 to**<br> **December**<br> **31, 2024** | **July 1,**<br> **2024 to**<br> **December**<br> **31, 2024** | **July 1,**<br> **2023 to December**<br> **31, 2023** |
|  | **US$** | **S$** | **S$** |
| Interest income on loan to related party |  |  | 158357 |
| Payment on behalf to related parties |  |  | 1149259 |

---

 

*Compensation of key management personnel*

---

| | | | |
|:---|:---|:---|:---|
|  | **July 1,**<br> **2024 to December**<br> **31, 2024** | **July 1,**<br> **2024 to December**<br> **31, 2024** | **July 1,**<br> **2023 to December**<br> **31, 2023** |
|  | **US$** | **S$** | **S$** |
| Salaries and bonuses | 70953 | 96936 | 589 |

---

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**21.** **Fair value of assets and liabilities** 

**Assets and liabilities not measured at fair value**

*Cash and cash equivalents, other receivables, amount due from/(to) related parties, other payables*

 

The carrying amounts of these balances approximate their fair values due to the short-term nature of these balances.

*Trade receivables and trade payables*

 

The carrying amounts of these receivables and payables approximate their fair values as they are subject to normal trade credit terms.

*Borrowings*

 

The carrying amounts of borrowings approximate their fair values as they are subject to interest rates close to market rate of interests for similar arrangements with financial institutions.

**22.** **Financial risk management** 

The Group's activities expose it to a variety of financial risks from its operations. The key financial risks include credit risk, market risk (including foreign currency risk, interest rate risk) and liquidity risk.

The Directors review and agree policies and procedures for the management of these risks, which are executed by the management team. It is, and has been throughout the current and previous financial period/year, the Group's policy that no trading in derivatives for speculative purposes shall be undertaken.

The following sections provide details regarding the Group's exposure to the abovementioned financial risks and the objectives, policies and processes for the management of these risks.

There has been no change to the Group's exposure to these financial risks or the manner in which it manages and measures the risks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a)** **Credit risk** 

 ****

Credit risk refers to the risk that the counterparty will default on its contractual obligations resulting in a loss to the Group. The Group's exposure to credit risk arises primarily from trade and other receivables.

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**22.** **Financial risk management (Continued)** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a)** **Credit risk (Continued)** 

The Group has adopted a policy of only dealing with creditworthy counterparties. The Group performs ongoing credit evaluation of its counterparties' financial condition and generally do not require a collateral.

The Group considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period.

The Group has determined the default event on a financial asset to be when internal and/or external information indicates that the financial asset is unlikely to be received, which could include default of contractual payments due for more than 60 days, default of interest due for more than 30 days or there is significant difficulty of the counterparty.

To minimise credit risk, the Group has developed and maintained the Group's credit risk gradings to categorise exposures according to their degree of risk of default. The credit rating information is supplied by publicly available financial information and the Group's own trading records to rate its major customers and other debtors. The Group considers available reasonable and supportive forward-looking information which includes the following indicators:

---

| |
|:---|
| Actual or expected significant adverse changes in business, financial or economic conditions that are expected to cause a significant change to the debtor's ability to meet its obligations |
| Actual or expected significant changes in the operating results of the debtor |
| Significant increases in credit risk on other financial instruments of the same debtor |
| Significant changes in the expected performance and behaviour of the debtor, including changes in the payment status of debtors in the Group and changes in the operating results of the debtor. |

---

Regardless of the analysis above, a significant increase in credit risk is presumed if a debtor is more than 30 days past due in making contractual payment.

 ****

The Group determined that its financial assets are credit-impaired when:

---

| |
|:---|
| There is significant difficulty of the debtor |
| A breach of contract, such as a default or past due event |
| It is becoming probable that the debtor will enter bankruptcy or other financial reorganisation |
| There is a disappearance of an active market for that financial asset because of financial difficulty |

---

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**22.** **Financial risk management (Continued)** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a)** **Credit risk (Continued)** 

The Group categorises a receivable for potential write-off when a debtor fails to make contractual payments more than 120 days past due. Financial assets are written off when there is evidence indicating that the debtor is in severe financial difficulty and the debtor has no realistic prospect of recovery.

The Group's current credit risk grading framework comprises the following categories:

---

| | | |
|:---|:---|:---|
| <br>**Category** | <br>**Definition of category** | **Basis for recognising**<br> **expected credit loss**<br> **(ECL)** |
| I | Counterparty has a low risk of default and does not have any past-due amounts. | 12-month ECL |
| II | Amount is >30 days past due or there has been a significant increase in credit risk since initial recognition. | Lifetime ECL - not credit-impaired |
| III | Amount is >60 days past due or there is evidence indicating the asset is credit-impaired (in default). | Lifetime ECL - credit impaired |
| IV | There is evidence indicating that the debtor is in severe financial difficulty and the debtor has no realistic prospect of recovery. | Amount is written off |

---

The table below details the credit quality of the Group's financial assets, as well as maximum exposure to credit risk by credit risk rating categories:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | <br>**Note** | <br>**Category** | **12-month or lifetime ECL** | **Gross**<br> **carrying**<br> **amount** | <br>**Loss**<br> **allowance** | **Net**<br> **carrying**<br> **amount** |
|  |  | |  | **US$** | **US$** | **US$** |
| **December 31, 2024** |  | |  | | | |
| Trade receivables | 12 | Note 1 | Lifetime ECL (simplified) | 1377748 | (337003) | 1040745 |
| Deposits | 12 | I | 12-month ECL | 812986 | - | 812986 |
|  |  |  |  |  | (337003) |  |

---

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**22.** **Financial risk management (Continued)** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a)** **Credit risk (Continued)** 

 ****

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | <br>**Note** | <br>**Category** | **12-month or lifetime ECL** | **Gross**<br> **carrying**<br> **amount** | <br>**Loss**<br> **allowance** | **Net**<br> **carrying**<br> **amount** |
|  | | |  | **S$** | **S$** | **S$** |
| **December 31, 2024** | | |  | | | |
| Trade receivables | 12 | Note 1 | Lifetime ECL (simplified) | 1882279 | (460413) | 1421866 |
| Deposits | 12 | I | 12-month ECL | 1110701 | - | 1110701 |
|  |  |  |  |  | (460413) |  |
| **June 30, 2024 (Audited)** |  |  |  |  |  |  |
| Trade receivables | 12 | Note 1 | Lifetime ECL (simplified) | 2133573 | (460413) | 1673160 |
| Deposits | 12 | I | 12-month ECL | 90252 |  | 90252 |
| Other receivables | 12 | I | 12-month ECL | 213644 |  | 213644 |
| Amount due from related parties | 14 | I | 12-month ECL | 10557240 | - | 10557240 |
|  |  |  |  |  | (460413) |  |

---

**<u>Trade receivables</u>** (Note 1)

The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables. The Group determines the ECL by using a provision matrix, estimated based on historical credit loss experience based on the past due status of the debtors, adjusted as appropriate to reflect current conditions and estimates of future economic conditions.

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**22.** **Financial risk management (Continued)** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a)** **Credit risk (Continued)** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Trade receivables** | **Trade receivables** | **Trade receivables** | **Trade receivables** | **Trade receivables** | **Trade receivables** |
|  | **Days past due** | **Days past due** | **Days past due** | **Days past due** | **Days past due** | **Days past due** |
|  | **Not past**<br> **due** | **1 – 60 days** | **61 – 120 days** | **> 120 days** | **> 365 days** | <br>**Total** |
|  | **US$** | **US$** | **US$** | **US$** | **US$** | **US$** |
| **December 31, 2024** |  |  |  |  |  |  |
| ECL rate |  |  |  | 24.52% | 78.99% |  |
| Estimated total gross carrying amount at | 456483 | 306272 | 56459 | 191334 | 367200 | 1377748 |
| ECL |  |  |  | (46915) | (290088) | (337003) |
|  |  |  |  |  |  | 1040745 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Trade receivables** | **Trade receivables** | **Trade receivables** | **Trade receivables** | **Trade receivables** | **Trade receivables** |
|  | **Days past due** | **Days past due** | **Days past due** | **Days past due** | **Days past due** | **Days past due** |
|  | **Not past**<br> **due** | **1 – 60 days** | **61 – 120 days** | **> 120 days** | **> 365 days** | <br>**Total** |
|  | **S$** | **S$** | **S$** | **S$** | **S$** | **S$** |
| **December 31, 2024** |  |  |  |  |  |  |
| ECL rate |  |  |  | 24.52% | 78.99% |  |
| Estimated total gross carrying amount at | 623647 | 418429 | 77135 | 261400 | 501668 | 1882279 |
| ECL |  |  |  | (64095) | (396318) | (460413) |
|  |  |  |  |  |  | 1421866 |
| **June 30, 2024 (Audited)** |  |  |  |  |  |  |
| ECL rate | 1.95% | 2.02% | 2.61% | 10.54% | 89.08% |  |
| Estimated total gross carrying amount at | 814544 | 321783 | 112593 | 227123 | 323324 | 2133573 |
| ECL | (15880) | (6494) | (5939) | (34093) | (398007) | (460413) |
|  |  |  |  |  |  | 1673160 |

---

Information regarding movement of loss of allowance of trade receivables is disclosed in Note 12.

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**22.** **Financial risk management (Continued)** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a)** **Credit risk (Continued)** 

<u>Excessive risk concentration</u>

Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the same geographical region, or have economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic, political or other conditions. Concentrations indicate the relative sensitivity of the Group's performance to developments affecting a particular industry.

<u>Exposure to credit risk</u>

The Group have no significant concentration of credit risk other than those balances with related company comprising 1% (June 30, 2024: 2% and 1%) of trade receivables. The Group has credit policies and procedures in place to minimise and mitigate its credit risk exposure.

**<u>Other receivables, amount due from a director and related parties</u>**

The Group assessed the latest performance and financial position of the counterparties, adjusted for the future outlook of the industry in which the counterparties operate in, and concluded that there has been no significant increase in the credit risk since the initial recognition of the financial assets. Accordingly, the Group measured the impairment loss allowance using 12-month ECL and determined that the ECL is insignificant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b)** **Market risk** 

Market risk is the risk that changes in market prices, such as interest rates and foreign exchange rates will affect the Group's income. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return on risk.

**<u>Foreign currency risk</u>**

The Group's foreign exchange risk results mainly from cash flows from transactions denominated in foreign currencies. At present, the Group does not have any formal policy for hedging against currency risk. The Group ensures that the net exposure is kept to an acceptable level by buying or selling foreign currencies at spot rates, where necessary, to address short term imbalances.

The Group has transactional currency exposures arising from sales or purchases that are denominated in a currency other than the functional currency of the Group.

The Group determined that sensitivity to the exchange rate changes does not impose significant impact on the results and operations of the Group.

 ****

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**22.** **Financial risk management (Continued)** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b)** **Market risk (Continued)** 

**<u>Interest rate risk</u>**

Interest rate risk is the risk that the fair value or future cash flows of the Group's financial instruments will fluctuate because of changes in market interest rates. The Group's exposure to interest rate risk arises primarily from fixed deposits. These transactions and balances were not significant.

The Group does not expect any significant effect on the Group's profit or loss arising from the effects of reasonably possible changes to interest rates on interest bearing financial instruments at the end of the financial year due to those interest-bearing assets and liabilities are insignificant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c)** **Liquidity risk** 

Liquidity risk refers to the risk that the Group will encounter difficulties in meeting its short-term obligations due to shortage of funds. The Group's exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. It is managed by matching the payment and receipt cycles. The Group's objective is to maintain a balance between continuity of funding and flexibility through the use of standby credit facilities. The Group finances its working capital requirements through funds generated from operations of the Group. Management is satisfied that funds are available to finance the operation of the Group.

<u>Analysis of financial instruments by remaining contractual maturities</u>

 

The table below summarises the maturity profile of the Group's financial assets and liabilities at the reporting date based on contractual undiscounted repayment obligations.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Carrying amount** | **Contractual cash flows** | **One year or less** | **Two years to five years** |
|  | **US$** | **US$** | **US$** | **US$** |
| **December 31, 2024** | | | | |
| **<u>Financial assets</u>** |  |  |  |  |
| Trade and other receivables | 1853731 | 1853731 | 1853731 |  |
| Cash and cash equivalents | 5449875 | 5449875 | 5449875 |  |
| Total undiscounted financial assets | 7303606 | 7303606 | 7303606 |  |

---

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**22.** **Financial risk management (Continued)** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c)** **Liquidity risk (Continued)** 

<u>Analysis of financial instruments by remaining contractual maturities</u> (Continued)

 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Carrying amount** | **Contractual cash flows** | **One year or less** | **Two years to five years** |
|  | **US$** | **US$** | **US$** | **US$** |
| **December 31, 2024 (Continued)** | | | | |
| **<u>Financial liabilities</u>** |  |  |  |  |
| Trade and other payables | 1388777 | 1388777 | 1388777 |  |
| Amount due to related parties | 358128 | 358128 | 358128 |  |
| Amount due to a former director | 389286 | 389286 | 389286 |  |
| Borrowings | 3199807 | 3199807 | 3199807 |  |
| Total undiscounted financial liabilities | 5335998 | 5335998 | 5335998 |  |
| Total net undiscounted financial assets | 1967608 | 1967608 | 1967608 |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Carrying amount** | **Contractual cash flows** | **One year or less** | **Two years to five years** |
|  | **S$** | **S$** | **S$** | **S$** |
| **December 31, 2024** |  |  |  |  |
| **<u>Financial assets</u>** |  |  |  |  |
| Trade and other receivables | 2532567 | 2532567 | 2532567 |  |
| Cash and cash equivalents | 7445619 | 7445619 | 7445619 | - |
| Total undiscounted financial assets | 9978186 | 9978186 | 9978186 | - |
| **<u>Financial liabilities</u>** |  |  |  |  |
| Trade and other payables | 1897347 | 1897347 | 1897347 |  |
| Amount due to related parties | 489275 | 489275 | 489275 |  |
| Amount due to a former director | 531842 | 531842 | 531842 |  |
| Borrowings | 4371577 | 4371577 | 4371577 | - |
| Total undiscounted financial liabilities | 7290041 | 7290041 | 7290041 | - |
| Total net undiscounted financial assets | 2688145 | 2688145 | 2688145 | - |

---

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**22.** **Financial risk management (Continued)** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c)** **Liquidity risk (Continued)** 

<u>Analysis of financial instruments by remaining contractual maturities</u> (Continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Carrying amount** | **Contractual cash flows** | **One year or less** | **Two years to five years** |
|  | **S$** | **S$** | **S$** | **S$** |
| **June 30, 2024 (Audited)** | | | | |
| **<u>Financial assets</u>** |  |  |  |  |
| Trade and other receivables | 1977056 | 1977056 | 1977056 |  |
| Cash and cash equivalents | 1951053 | 1951053 | 1951053 |  |
| Amount due from related parties | 10557240 | 10557240 | 10557240 | - |
| Total undiscounted financial assets | 14485349 | 14485349 | 14485349 | - |
| **<u>Financial liabilities</u>** |  |  |  |  |
| Trade and other payables | 2184619 | 2184619 | 2184619 |  |
| Amount due to related parties | 1311390 | 1311390 | 1311390 |  |
| Amount due to a former director | 111459 | 111459 | 111459 |  |
| Borrowings | 4289790 | 4289790 | 2706356 | 1583434 |
| Total undiscounted financial liabilities | 7897258 | 7897258 | 6313824 | 1583434 |
| Total net undiscounted financial assets/(liabilities) | 6588091 | 6588091 | 8171525 | (1583434) |

---

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**23.** **Financial instruments by category** 

At the reporting date, the aggregate carrying amounts of financial assets, at FVPL, financial assets measured at amortized cost and financial liabilities at amortized cost were as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **June 30,**<br> **2024<br> (Audited)** |
|  | **US$** | **S$** | **S$** |
| **Financial assets measured at amortized cost** |  |  |  |
| Trade and other receivables | 1853731 | 2532567 | 1977056 |
| Cash and cash equivalents | 5449875 | 7445619 | 1951053 |
| Amount due from related parties | - | - | 10557240 |
| Total financial assets measured at amortized cost | 7303606 | 9978186 | 14485349 |
| **Financial liabilities measured at amortized cost** |  |  |  |
| Trade and other payables | 1388777 | 1897347 | 2184619 |
| Amount due to related parties | 358128 | 489275 | 1311390 |
| Amount due to a former director | 389286 | 531842 | 111459 |
| Borrowings | 3199807 | 4371577 | 4289790 |
| Total financial liabilities measured at amortized cost | 5335998 | 7290041 | 7897258 |

---

**24.** **Capital management** 

The primary objective of the Group's capital management is to safeguard the entity's ability to continue as a going concern. The related parties have undertaken not to recall the amounts due to them until such time the Company is in the position to repay these amounts without impairing its liquidity position and to provide continuing financial support and adequate funds to enable the Company to meet its liabilities as and when they fall due.

No changes were made in the objectives, policies or processes during the financial period ended December 31, 2024.

The Group is not subjected to either internal or external imposed capital requirement. The Group's overall strategy remains unchanged from 2023.

**Basel Medical Group Ltd and its Subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**For the financial period ended December 31, 2024**

**25.** **Events occurring after the reporting period** 

There were no significant events that occurred after the financial period ended December 31, 2024, which require adjustment to the financial statements.

However, the following non-adjusting events occurred subsequent to the reporting period:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) The
 Company's shares commenced trading on the Nasdaq Capital Market on February 25, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) In
 March 2025, the Company's subsidiary has fully settled the outstanding balance of the
 short-term loan. The total repayment amounted to S$4.0 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) In
 April 2025, the Company's subsidiary, Basel Medical Group Pte. Ltd., completed the
 acquisition of Bethesda Medical Pte. Ltd.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) In
 April 2025, Mr. Keng Leong Fung was appointed as a Director and Chairman of the Board of
 Basel Medical Group Ltd. In the same month, Mr. Raymond Cheung resigned as Director and Chief
 Executive Officer from the Company and all of the Company's subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) In
 May 2025, Basel Medflow Pte Ltd was incorporated with 60% shares held by Basel Medical Group
 Pte. Ltd., the Company's subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f) In
 May 2025, the Company proposed to purchase Bitcoins in exchange for the issue of ordinary
 shares in the Company.

## Exhibit 99.2

**Exhibit 99.2**

**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

 

*The following discussion and analysis of our financial condition and results of operations for the six months ended December 31, 2023 and 2024 should be read in conjunction with our unaudited consolidated financial statements and related notes for the six months ended December 31, 2023 and 2024, and our audited consolidated financial statements and related notes for the fiscal years ended June 30, 2023 and 2024. This discussion and analysis and other parts of this document contain forward-looking statements based upon current beliefs, plans and expectations that involve risks, uncertainties and assumptions. Our actual results and the timing of selected events could differ materially from those anticipated in these forward-looking statements as a result of several factors. Factors that might cause future results to differ significantly from those projected in the forward-looking statements include, but are not limited to, those discussed below and elsewhere in this document. Under no circumstances should the inclusion of such forward-looking statements herein be regarded as a representation, warranty or prediction with respect to the accuracy of the underlying assumptions by our Company or any other person. These forward-looking statements that speak only as of the date hereof.*

**REVIEW OF RESULTS OF OPERATIONS**

**Six months ended December 31, 2024 and 2023**

***Revenue***

Revenue decreased slightly by S$54,246, approximately 1.0%, from S$5,088,326 in six months ended December 31, 2023 to S$5,034,080 (US$3,684,731) in six months ended December 31, 2024. This decrease in revenue was attributable to a lower patient count recorded for the clinics, especially from individual walk-in patients.

Revenue from individual walk-in patients decreased by S$560,634 in the six months ended December 31, 2024 as compared to six months ended December 31, 2023, due to the change in perspective for non-urgent treatment by individual patients post-COVID, whereby some patients prefer to avoid going to clinics or postpone non-urgent operations. This decrease in revenue is partially offset by the increase in revenue from the corporate patients by S$506,388 in the six months ended December 31, 2024 as compared to six months ended December 31, 2023. This is attributed to the rebound from the COVID pandemic, as construction workers constitute a large segment of our patients. As the construction sector gradually rebounds post-COVID, there is an increase in injury-related cases.

***Other income***

 ****

Other income increased by S$196,217, approximately 121.6% from S$161,430 in the six months ended December 31, 2023 to S$357,647 (US$261,782) in six months ended December 31, 2024. This increase was mainly due to an increase in interest income from fixed deposits and waiver of long outstanding balance in other creditors.

***Consumables, medical supplies and other related expenses***

Consumables, medical supplies and other related expenses decreased by S$227,735, approximately 17.8% from S$1,277,016 in the six months ended December 31, 2023 to S$1,049,281 (US$768,029) in six months ended December 31, 2024. The decrease was attributable to lower drug and consumable costs and lab costs in the six months ended December 31, 2024 as compared to six months ended December 31, 2023.

***Employee benefit expense***

 ****

Employee benefit expense increased by S$1,531,219, approximately 116.3% from S$1,316,323 in the six months ended December 31, 2023 to S$2,847,542 (US$2,084,279) in six months ended December 31, 2024. This increase was mainly due to an increase in headcount and bonus payments.

***Depreciation expense***

Depreciation expense increased by S$86,349 or 32.6%, from S$265,120 in the six months ended December 31, 2023 to S$351,469 (US$257,260) in six months ended December 31, 2024. This was a result of higher depreciation from right of use assets in six months ended December 31, 2024 as compared to the six months ended December 31, 2023 due to the renewal of the leases.

***Rent expense***

 ****

Rent expense increased by S$116,821 or 3674.8%, from S$3,179 in the six months ended December 31, 2023 to S$120,000 (US$87,835) in six months ended December 31, 2024 due to a short term lease of office.

***Other operating expenses***

Other operating expenses increased by S$888,523 or 251.0% from S$353,936 in the six months ended December 31, 2023 to S$1,242,459 (US$909,425) in six months ended December 31, 2023 mainly due to exchange loss resulting from the strengthening of the USD against SGD and professional fees incurred for audit.

***Finance costs***

Finance costs increased slightly by S$1,496 from S$96,123 in the six months ended December 31, 2023 to S$97,619 (US$71,453) in six months ended December 31, 2024, mainly due to increase in interest expense for term loans.

***Profit before tax***

Profit before tax decreased by S$2,254,702 from a profit of S$1,938,059 in the six months ended December 31, 2023 to a loss of S$316,643 (US$231,768) in six months ended December 31, 2024, mainly arising from an increase in employee benefit expense.

***Income tax expense***

Income tax expense decreased by S$611,095 from S$611,483 in the six months ended December 31, 2023 to S$388 (US$284) in six months ended December 31, 2024, which is in line with the decrease in profit in six months ended December 31, 2024.

**REVIEW OF FINANCIAL POSITION**

**As at December 31, 2024**

***Current Assets***

 ****

Current assets amounted to S$14,456,389 (US$10,581,459) or 96.8% of the total assets as at December 31, 2024, and mainly comprised inventories, trade and other receivables, cash and cash equivalents and deferred offering costs.

Inventories amounted to S$99,308 (US$72,689) and accounted for 0.7% of the current assets, and comprised of drugs and medical supplies.

Trade and other receivables amounted to S$5,022,050 (US$3,675,926) and accounted for 34.7% of the current assets, which are mainly trade receivables due from corporate clients, deposits, and other receivables.

Cash and cash equivalents amounted to S$7,445,619 (US$5,449,875), and accounted for 51.5% of the current assets.

Deferred offering costs amounted to S$1,889,412 (US$1,382,969), and accounted for 13.1% of the current assets.

***Non-Current Assets***

 ****

As at December 31, 2024, non-current assets amounted to S$476,806 (US$349,001) or 3.2% of our Group's total assets. Non-current assets mainly consist of right of use assets from lease properties of S$367,433 (US$268,945), deferred tax assets of S$77,005 (US$56,364) and property and equipment of S$32,368 (US$23,692).

***Current Liabilities***

 ****

Current liabilities amounted to S$7,671,336 (US$5,615,090) and accounted for 100.0% of our total liabilities, and comprised of trade and other payables, borrowings, amount due to related parties, amount due to a former director, asset retirement obligation and provision for income tax.

Trade and other payables amounted to S$2,048,839 (US$1,499,662) and accounted for 26.7% of our current liabilities. Trade and other payables mainly comprised trade payables to suppliers in relation to the purchases of consumables and medical supplies, accrued bonus for employees and goods and services tax payable.

Borrowings, which amounted to S$4,371,577 (US$3,199,807) and accounted for 57.0% of our current liabilities, mainly related to term loan from banks.

Amount due to related parties of S$489,275 (US$358,128), or 6.4% of our Group's total current liabilities.

Amount due to a former director of S$531,842 (US$389,286), or 6.9% of our Group's total current liabilities.

Asset retirement obligation of S$15,000 (US$10,979), or 0.2% of our Group's total current liabilities.

Provision for income tax of S$214,803 (US$157,228), or 2.8% of our Group's total current liabilities.

***Total Equity***

 ****

Total equity amounted to S$7,261,859 (US$5,315,370), mainly comprising S$24,455,178 (US$17,900,145) of share capital, S$24,455,170 (US$17,900,139) of merger reserve arising from group restructuring, S$7,273,962 (US$5,324,229) of retained earnings and translation reserve of S$12,111 (US$8,865).

**LIQUIDITY AND CAPITAL RESOURCES**

We financed our growth and operations through a combination of shareholders' equity (including retained profits), net cash generated from operating activities, and borrowings from financial institutions. Our principal uses of cash have been for operational expenses, working capital purposes and payment of taxes.

As at December 31, 2024, we had cash and cash equivalents of S$7,445,619 (US$5,449,875). Equity attributable to owners of our Company amounted to S$7,261,859 (US$5,315,370) and our total borrowings amounted to S$4,371,577 (US$3,199,807), comprising mainly term loan from banks.

Our Directors are of the reasonable opinion that, after taking into consideration the cash flows generated from our operations, our external borrowings and our existing cash and cash equivalents, and without considering any subsequent drawdowns thereof, the working capital available to our Group is sufficient to meet our present requirements and for at least 12 months after the period end.

We set out below a summary of our consolidated statements of cash flows for the period under review. The following net cash flow summary should be read in conjunction with the full text of this document, including consolidated financial statements for the six months ended December 31, 2024 and 2023, as set out in this document.

---

| | | | |
|:---|:---|:---|:---|
|  | **Six months ended December 31** | **Six months ended December 31** | **Six months ended December 31** |
|  | **2024** | **2024** | **2023** |
|  | **US$'000** | **S$'000** | **S$'000** |
| Net cash (used in)/ generated from operating activities | (2774) | (3790) | 144 |
| Cash generated from/ (used in) investing activities | 26 | 36 | (8) |
| Net cash generated from/ (used in) financing activities | 6779 | 9261 | (410) |
| Net increase /(decrease) in cash and cash equivalents | 4031 | 5507 | (274) |
| Cash and cash equivalents at beginning of financial period | 1428 | 1951 | 1217 |
| Effects of currency translation on cash and cash <br>equivalents | (9) | (12) | - |
| Cash and cash equivalents at end of financial period | 5450 | 7446 | 944 |

---

**Six months ended December 31, 2024**

For the six months ended December 31, 2024, we generated operating cash flows before working capital changes of S$78,101 (US$57,168). Net changes in working capital amounted to -S$3,571,219 (-US$2,613,978). This was due mainly to an increase in trade and other receivables of S$3,016,831 (US$2,208,191), a decrease in trade and other payables of S$527,110 (US$385,822) and an increase in inventories of S$27,278 (US$19,965). We paid interest of S$97,619 (US$71,453) and income tax of S$199,540 (US$146,055) in the six months ended December 31, 2024. As a result, the net cash used in operating activities amounted to S$3,790,277 (US$2,774,318).

Cash generated from investing activity amounted to S$35,987 (US$26,340), mainly due to interest receipt of S$54,344 (US$39,777) which is partially offset by the acquisition of property and equipment of S$18,357 (US$13,437).

Net cash generated from financing activities of S$9,260,967 (US$6,778,631) was mainly due to decrease in amount due from related parties of S$10,557,240 (US$7,727,448), proceeds from borrowings of S$4,000,000 (US$2,927,829) and increase in amount due to a former director of S$420,384 (US$307,703). This increase was partially offset by repayment of borrowings of S$4,262,613 (US$3,120,051), decrease in amount due to related parties of S$822,115 (US$601,753), payment of principal portion of lease liabilities of S$330,541 (US$241,942) and increase in deferred offering costs of S$301,388 (US$220,603).

As a result of the above, our Group's cash and cash equivalents increased by S$6,502,039 from S$943,580 as at December 31, 2023 to S$7,445,619 (US$5,449,875) as at December 31, 2024.

**CAPITAL EXPENDITURES, COMMITMENTS AND CONTINGENT LIABILITIES**

**Commitments**

As at December 2024 and 2023, our Group was committed to making the following rental payments in respect of operating leases:

---

| | | | |
|:---|:---|:---|:---|
|  | **As at <br> December 31, 2024** | **As at <br> December 31, 2024** | **As at<br> December 31, 2023** |
|  | **(US$'000)** | **(S$'000)** | **(S$'000)** |
| Within one year | 722 | 986 | 320 |
| Between one year and five years | 1103 | 1507 |  |
| **Total** | **1825** | **2493** | **320** |

---

**Material capital expenditures and contingent liabilities**

There were no material capital expenditures other than routine purchases of medical, computer and office equipment. The Group has no known contingent liabilities as at December 31, 2024.

**SIGNIFICANT ACCOUNTING POLICIES CHANGES**

The accounting policies have been consistently applied by the Group during the years under review, except for the changes in accounting policies as discussed in the consolidated financial statements appended to this document.