| INFORMATION ABOUT COMPONENTS OF CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | 7. INFORMATION ABOUT COMPONENTS OF CONSOLIDATED STATEMENTS OF FINANCIAL POSITION 7.1. Cash and cash equivalents 06/30/2023 06/30/2022 06/30/2021 Cash at bank and on hand 48,129,194 32,912,886 28,327,569 Money market funds — 562,380 7,718,544 48,129,194 33,475,266 36,046,113 7.2. Other financial assets 06/30/2023 06/30/2022 06/30/2021 Current Restricted short-term deposits 212,703 265,123 425,976 US Treasury bills 9,163,298 — 7,885,937 Mutual funds 1,596,539 2,913,519 — Other investments 1,162,480 2,222,491 2,849,485 12,135,020 5,401,133 11,161,398 06/30/2023 06/30/2022 06/30/2021 Non-current Shares of Bioceres S.A. 444,635 444,870 355,251 Other investments 274 174,971 742,211 444,909 619,841 1,097,462 7.3. Trade receivables 06/30/2023 06/30/2022 06/30/2021 Current Trade debtors 160,269,233 111,950,965 87,709,287 Allowance for impairment of trade debtors (7,425,604) (7,142,252) (5,858,503) Shareholders and other related parties (Note 17) — 640,258 — Allowance for credit notes to be issued (3,694,019) (1,961,463) (2,987,398) Trade debtors - Joint ventures and associates (Note 17) 865,627 22,429 221,048 Deferred checks 7,991,237 8,242,373 9,699,738 158,006,474 111,752,310 88,784,172 06/30/2023 06/30/2022 06/30/2021 Non-current Trade debtors — 200,412 135,739 — 200,412 135,739 The book value is reasonably approximate to the fair value given its short-term nature. Variations in the allowance for uncollectible trade receivables are reported in Note 7.17. 7.4. Other receivables 06/30/2023 06/30/2022 06/30/2021 Current Taxes 6,113,764 9,071,643 6,048,533 Receivables for PP&E sales 156,423 1,734,281 — Shareholders and other related parties (Note 17) 3,792,429 1,182 1,547 Other receivables - Parents companies and related parties to Parents (Note 17) — — 770,549 Other receivables - Joint ventures and associates (Note 17) 6,104,219 2,987,765 2,219,863 Prepayments to suppliers 10,956,831 4,648,164 1,646,614 Prepayments to suppliers - Shareholders and other related parties (Note 17) — — 132,625 Reimbursements over exports 10,558 10,549 10,547 Prepaid expenses and other receivables 1,302,221 1,110 1,021 Loans receivables — 230,000 230,000 Miscellaneous 388,553 642,890 92,406 28,824,998 19,327,584 11,153,705 06/30/2023 06/30/2022 06/30/2021 Non-current Taxes 873,699 218,159 862,771 Reimbursements over exports 1,290,227 2,036,040 1,680,371 Loans receivables 230,000 — — Miscellaneous 152,315 — — 2,546,241 2,254,199 2,543,142 The book value of financial instruments in this note is reasonable. 7.5. Inventories 06/30/2023 06/30/2022 06/30/2021 Seeds 1,542,159 1,183,915 404,774 Resale products 58,544,931 35,080,737 21,368,521 Manufactured products 25,881,761 21,725,042 10,902,683 Goods in transit 3,620,606 4,340,232 1,169,303 Supplies 24,893,187 17,534,434 6,320,594 Agricultural products 28,436,830 47,284,512 21,984,626 Allowance for obsolescence (2,492,499) (1,104,750) (1,112,950) 140,426,975 126,044,122 61,037,551 Net of agricultural products 111,990,145 78,759,610 39,052,925 The roll-forward of allowance for obsolescence is in Note 7.17. Inventories recognized as an expense during the years ended June 30, 2023, 2022 and 2021 amounted to $212.2 million, $190.3 million, and $102.4 million, respectively. Those expenses were included in cost of sales. 7.6. Biological assets Changes in Biological assets: Soybean Corn Wheat Barley Sunflower Total Beginning of the year — — 44,413 12,900 — 57,313 Initial recognition and changes in the fair value of biological assets at the point of harvest 147,553 55,348 191,481 159,996 56,176 610,554 Costs incurred during the year 986,505 721,294 477,102 185,360 83,651 2,453,912 Decrease due to harvest/disposals (1,134,058) (776,642) (625,211) (299,199) (139,827) (2,974,937) Year ended June 30, 2023 — — 87,785 59,057 — 146,842 Soybean Corn Wheat Barley Sunflower Total Beginning of the year 54,162 27,646 2,230,959 3,071 — 2,315,838 Initial recognition and changes in the fair value of biological assets at the point of harvest 3,539,061 1,088,089 1,601,002 128,836 31,042 6,388,030 Costs incurred during the year 10,888,076 756,821 20,623,599 83,356 31,812 32,383,664 Exchange differences 122,077 6,996 564,649 776 296 694,794 Decrease due to harvest (14,603,376) (1,879,552) (24,975,796) (203,139) (63,150) (41,725,013) Year ended June 30, 2022 — — 44,413 12,900 — 57,313 Soybean Corn Wheat Barley HB4 Soy HB4 Wheat Total Beginning of the year 105,101 271,754 45,639 34,050 — 509,184 965,728 Initial recognition and changes in the fair value of biological assets at the point of harvest 981,551 250,443 284,903 35,847 741,799 531,712 2,826,255 Costs incurred during the year 252,504 417,586 241,610 37,115 17,716,018 7,053,929 25,718,762 Exchange differences (113,718) (153,795) (65,797) (16,876) (2,823,643) (1,153,734) (4,327,563) Decrease due to harvest (1,171,276) (758,342) (484,044) (87,065) (15,634,174) (4,732,443) (22,867,344) Year ended June 30, 2021 54,162 27,646 22,311 3,071 — 2,208,648 2,315,838 7.7. Property, plant and equipment Property, plant and equipment as of June 30, 2023, 2022 and 2021, included the following: 06/30/2023 06/30/2022 06/30/2021 Gross carrying amount 93,634,779 71,521,454 63,974,402 Accumulated depreciation (25,780,944) (21,613,129) (16,019,806) Net carrying amount 67,853,835 49,908,325 47,954,596 Net carrying amount for each class of assets is as follows: Net carrying Net carrying Net carrying amount amount amount Class 06/30/2023 06/30/2022 06/30/2021 Office equipment 263,892 269,538 288,920 Vehicles 2,032,853 2,665,074 1,835,634 Equipment and computer software 174,399 231,676 67,105 Fixtures and fittings 2,862,949 3,546,919 2,967,431 Machinery and equipment 14,463,756 5,811,960 5,125,728 Land and buildings 36,144,792 34,240,384 35,674,513 Buildings in progress 11,911,194 3,142,774 1,995,265 Total 67,853,835 49,908,325 47,954,596 1. Gross carrying amount as of June 30, 2023 is as follows Gross carrying amount Additions As of the from Foreign beginning business currency As of the end Class of the year Additions combination Disposals Revaluation translation of the year Office equipment 908,004 57,835 — (4,235) — 6,484 968,088 Vehicles 5,261,979 353,886 — (130,583) — 7,037 5,492,319 Equipment and computer software 925,349 90,055 12,469 (64,648) — 11,284 974,509 Fixtures and fittings 7,606,389 47,444 5,379 — — 4,687 7,663,899 Machinery and equipment 13,017,830 3,534,130 7,047,496 (195,327) — 108,918 23,513,047 Land and buildings 40,659,129 4,100 4,750,136 — (2,394,269) 92,627 43,111,723 Buildings in progress 3,142,774 7,198,309 1,285,092 — — 285,019 11,911,194 Total 71,521,454 11,285,759 13,100,572 (394,793) (2,394,269) 516,056 93,634,779 2. Accumulated depreciation as of June 30, 2023 is as follows: Depreciation Accumulated as of the Foreign Accumulated beginning of currency as of the end Class the year Disposals Of the year translation Revaluation of the year Office equipment 638,466 (3,715) 67,711 1,734 — 704,196 Vehicles 2,596,905 (110,323) 959,879 13,005 — 3,459,466 Equipment and computer software 693,673 (44,301) 141,839 8,899 — 800,110 Fixtures and fittings 4,059,470 — 737,816 3,664 — 4,800,950 Machinery and equipment 7,205,870 (173,690) 1,988,931 28,180 — 9,049,291 Land and buildings 6,418,745 — 937,098 19,551 (408,463) 6,966,931 Total 21,613,129 (332,029) 4,833,274 75,033 (408,463) 25,780,944 3. Gross carrying amount as of June 30, 2022 is as follows: Gross carrying amount As of the Foreign beginning currency As of the end Class of the year Additions Transfers Disposals translation Revaluation of the year Office equipment 762,825 35,039 — — 110,140 — 908,004 Vehicles 3,512,217 1,113,557 8,238 (233,674) 861,641 — 5,261,979 Equipment and computer software 592,126 235,216 — (59,016) 157,023 — 925,349 Fixtures and fittings 5,637,943 — 397,628 (13) 1,570,831 — 7,606,389 Machinery and equipment 9,987,811 656,043 86,945 (46,303) 2,333,334 — 13,017,830 Land and buildings 41,486,215 — 188,222 (1,345,352) 9,458,810 (9,128,766) 40,659,129 Buildings in progress 1,995,265 1,418,935 (681,033) (427,093) 836,700 — 3,142,774 Total 63,974,402 3,458,790 — (2,111,451) 15,328,479 (9,128,766) 71,521,454 4. Accumulated depreciation as of June 30, 2022 is as follows: Depreciation Accumulated as of the Foreign Accumulated beginning of currency as of the end Class the year Disposals Of the year translation Revaluation of the year Office equipment 473,905 — 55,420 109,141 — 638,466 Vehicles 1,676,583 (211,024) 956,409 174,937 — 2,596,905 Equipment and computer software 525,021 (58,667) 136,708 90,611 — 693,673 Fixtures and fittings 2,670,512 — 728,528 660,430 — 4,059,470 Machinery and equipment 4,862,083 (5,016) 1,169,606 1,179,197 — 7,205,870 Land and buildings 5,811,702 — 722,334 1,453,483 (1,568,774) 6,418,745 Total 16,019,806 (274,707) 3,769,005 3,667,799 (1,568,774) 21,613,129 5. Gross carrying amount as of June 30, 2021 is as follows: Gross carrying amount Additions As of the from Foreign beginning business currency As of the Class of year Additions combination Transfers Disposals translation Revaluation end of year Office equipment 579,882 66,331 5,491 — (5,622) 116,743 — 762,825 Vehicles 2,977,542 987,101 466,024 — (1,045,656) 127,206 — 3,512,217 Equipment and computer software 465,679 66,263 13,952 — — 46,232 — 592,126 Fixtures and fittings 5,480,431 50,976 — 85,490 — 21,046 — 5,637,943 Machinery and equipment 9,054,701 604,307 — — (10,240) 339,043 — 9,987,811 Land and buildings 34,698,618 — 1,466,578 2,517,158 — 4,022,972 (1,219,111) 41,486,215 Buildings in progress 1,270,539 1,030,847 — (438,492) — 132,371 — 1,995,265 Total 54,527,392 2,805,825 1,952,045 2,164,156 (1,061,518) 4,805,613 (1,219,111) 63,974,402 6. Accumulated depreciation as of June 30, 2021 is as follows: Depreciation Accumulated as of the Foreign Accumulated beginning of Disposals/ currency as of the end Class year Transfers Of the year translation Revaluation of year Office equipment 391,602 (3,265) 45,174 40,394 — 473,905 Vehicles 1,828,087 (974,102) 689,273 133,325 — 1,676,583 Equipment and computer software 433,231 — 50,949 40,841 — 525,021 Fixtures and fittings 1,801,356 — 683,537 185,619 — 2,670,512 Machinery and equipment 3,605,468 (10,239) 898,522 368,332 — 4,862,083 Land and buildings 4,952,542 — 681,084 517,991 (339,915) 5,811,702 Total 13,012,286 (987,606) 3,048,539 1,286,502 (339,915) 16,019,806 The depreciation charge is included in Notes 8.3 and 8.4.The Group has no commitments to purchase property, plant and equipment items. A detail of restricted assets is provided in Note 20. Revaluation of property, plant and equipment The Group updates frequently their assessment of the fair value of its land and buildings taking into account the most recent independent valuations and market data. Valuations were performed as of June 30, 2023, 2022 and 2021. Management determined the property, plant and equipment’s value within a range of reasonable fair value estimates. All resulting fair value estimates for properties are included in level 2 or 3 depending on the methodology used. The following are the carrying amounts that would have been recognized if land and building were stated at cost. Cost value Class of property 06/30/2023 06/30/2022 06/30/2021 Land and buildings 21,161,294 20,661,443 17,937,729 7.8. Intangible assets Intangible assets as of June 30, 2023, 2022 and 2021 included the following: 06/30/2023 06/30/2022 06/30/2021 Gross carrying amount 202,306,618 94,229,557 78,019,203 Accumulated amortization (28,522,662) (17,524,688) (10,676,841) Net carrying amount 173,783,956 76,704,869 67,342,362 Net carrying amount of each class of intangible assets is as follows: Net carrying Net carrying Net carrying amount amount amount Class 06/30/2023 (1) 06/30/2022 06/30/2021 Seed and integrated products HB4 soy and breeding program 31,679,681 29,802,534 27,611,142 Integrated seed products 2,841,008 3,137,158 2,558,220 Crop nutrition Microbiological products 49,508,801 5,792,348 3,996,657 Other intangible assets Trademarks and patents 59,760,753 8,267,041 6,923,256 Software 1,987,690 2,167,985 1,849,041 Customer loyalty 23,006,023 22,537,803 19,404,046 RG/RS/OX Wheat 5,000,000 5,000,000 5,000,000 Total 173,783,956 76,704,869 67,342,362 (1) Includes $27.4 million of intangible assets not subject to amortization. 1. Gross carrying amount as of June 30, 2023 is as follows: Gross carrying amount As of the Additions from Foreign beginning of business currency As of the end Class the year Additions combination translation of the year Seed and integrated products HB4 soy and breeding program 31,371,088 3,587,337 — 34,958,425 Integrated seed products 3,181,155 — — 38,653 3,219,808 Crop nutrition Microbiological products 8,855,421 7,165,710 39,613,280 10,617 55,645,028 Other intangible assets Trademarks and patents 12,183,045 49,748 55,420,441 — 67,653,234 Software 5,176,373 399,925 — 6,113 5,582,411 Customer loyalty 28,462,475 — 1,785,237 — 30,247,712 RG/RS/OX Wheat 5,000,000 — — — 5,000,000 Total 94,229,557 11,202,720 96,818,958 55,383 202,306,618 2. Accumulated amortization as of June 30, 2023 is as follows: Amortization Accumulated as of Accumulated beginning of Foreign currency as of the end Class the year Of the year translation of the year Seed and integrated products HB4 soy and breeding program 1,568,554 1,710,190 — 3,278,744 Integrated seed products 43,997 332,531 2,272 378,800 Crop nutrition Microbiological products 3,063,073 3,073,154 — 6,136,227 Other intangible assets Trademarks and patents 3,916,004 3,976,477 — 7,892,481 Software 3,008,388 582,064 4,269 3,594,721 Customer loyalty 5,924,672 1,317,017 — 7,241,689 Total 17,524,688 10,991,433 6,541 28,522,662 3. Gross carrying amount as of June 30, 2022 is as follows: Gross carrying amount As of the Foreign beginning of currency As of the end Class the year Additions translation of the year Seed and integrated products HB4 soy and breeding program 27,611,142 3,759,946 — 31,371,088 Integrated seed products 2,558,220 — 622,935 3,181,155 Crop nutrition Microbiological products 6,037,680 1,389,738 1,428,003 8,855,421 Other intangible assets Trademarks and patents 9,824,171 — 2,358,874 12,183,045 Software 3,784,593 389,039 1,002,741 5,176,373 Customer loyalty 23,203,397 — 5,259,078 28,462,475 RG/RS/OX Wheat 5,000,000 — — 5,000,000 Total 78,019,203 5,538,723 10,671,631 94,229,557 4. Accumulated amortization as of June 30, 2022 is as follows: Amortization Accumulated as of Accumulated beginning of Foreign currency as of the end Class the year Of the year translation of the year Seed and integrated products HB4 soy and breeding program — 1,568,554 — 1,568,554 Integrated seed products — 43,997 — 43,997 Crop nutrition Microbiological products 2,041,023 505,133 516,917 3,063,073 Other intangible assets Trademarks and patents 2,900,915 277,990 737,099 3,916,004 Software 1,935,552 591,077 481,759 3,008,388 Customer loyalty 3,799,351 1,174,641 950,680 5,924,672 Total 10,676,841 4,161,392 2,686,455 17,524,688 5. Gross carrying amount as of June 30, 2021 is as follows: Gross carrying amount Additions As of the from Foreign beginning of business Transfers / currency As of the Class year Additions combination Disposals translation end of year Seed and integrated products HB4 soy and breeding program (1) 7,345,923 20,471,002 — (205,783) — 27,611,142 Integrated seed products 2,296,955 — — — 261,265 2,558,220 Crop nutrition Microbiological products 3,867,593 1,791,008 — (51,716) 430,795 6,037,680 Other intangible assets Trademarks and patents 8,432,746 4,834 499,329 — 887,262 9,824,171 Software 2,088,929 2,205,796 — (711,441) 201,309 3,784,593 Customer loyalty 18,800,691 — 2,424,568 — 1,978,138 23,203,397 GLA/ARA safflower — 2,931,699 — (2,931,699) — — RG/RS/OX Wheat — 5,000,000 — — — 5,000,000 Total 42,832,837 32,404,339 2,923,897 (3,900,639) 3,758,769 78,019,203 (1) Of the total additions, $18.4 million are associated with Arcadia’s transaction mentioned in Note 6. 6. Accumulated amortization as of June 30, 2021 is as follows: Amortization Accumulated as of Foreign Accumulated beginning of currency as of the end of Class the year Of the year translation the year Crop nutrition Microbiological products 1,363,962 523,992 153,069 2,041,023 Other intangible assets Trademarks and patents 2,057,964 626,420 216,531 2,900,915 Software 1,401,964 396,207 137,381 1,935,552 Customer loyalty 2,675,483 842,363 281,505 3,799,351 Total 7,499,373 2,388,982 788,486 10,676,841 The amortization charge is included in Notes 8.3 and 8.4. There are no intangibles assets whose use has been restricted or which have been delivered as a guarantee. The Group has not assumed any commitments to acquire new intangibles. Estimates There is an inherent material uncertainty related to management’s estimation of the ability of the Group to recover the carrying amounts of internally generated intangible assets related to biotechnology projects because it is dependent upon Group`s ability to raise sufficient funds to complete the projects development, the future outcome of the regulatory process, and the timing and amount of the future cash flows generated by the projects, among other future events. Management’s estimations about the demonstrability of the recognition criteria for these assets and the subsequent recoverability represent the best estimate that can be made based on all the available evidence, existing facts and circumstances and using reasonable and supportable assumptions in cash flow projections. Therefore, the Consolidated financial statements do not include any adjustments that would result if the Group were unable to recover the carrying amount of the above-mentioned assets through the generation of enough future economic benefits. 7.9. Goodwill 06/30/2023 06/30/2022 06/30/2021 Rizobacter Argentina S.A. 28,080,271 28,080,271 22,277,336 Bioceres Crops S.A. 7,523,322 7,523,324 6,003,780 Pro farm Group, Inc. (Note 6) 76,089,749 — — Insumos Agroquímicos S.A. 470,090 470,090 470,090 112,163,432 36,073,685 28,751,206 The Group is required to test whether goodwill has suffered any impairment on an annual basis. The recoverable amount is determined based on value in use calculations. The use of this method requires the estimation of future cash flows and the determination of a discount rate in order to calculate the present value of the cash flows. Rizobacter CGU. This CGU is composed of all revenues collected through Rizobacter from the production and sale of proprietary and third-party products, both in the domestic and international markets. Additionally, Rizobacter generates revenue from the formulation, fragmentation and resale of third-party products. Among the main groups of products are i) microbiological products (bio-inductors/inoculants, biological fertilizers and bio-controllers); ii) crop and seed protection (treatments, adjuvants, baits, stored grains and seed treatment); and iii) crop nutrition (fertilizers). Packs are generally a combination of a microbiological product (bio-inductors/inoculants) with a crop and seed protection product (treatments). Bioceres Crops CGU. This CGU is composed of the expected revenues from the commercialization of intensive R&D products that previously were allocated on the equity participation. Insuagro CGU. This CGU is composed of all revenues collected through Insuagro from the production and sale of proprietary and third-party products, both in the domestic markets. Pro Farm Group Inc CGU. This CGU is composed of all revenues collected through Pro Farm from the production and sale of proprietary and third-party products, both in the domestic and international markets. Management has made the estimates considering the cash flow projections projected by the management and third-party valuation reports on the assets, intangible assets and liabilities assumed. The key assumptions utilized are the following: Key assumption Management’s approach Discount rate The discount rate used ranges was 16.90% for Rizobacter and Bioceres Crops, 22% for Insuagro and 12.60 % for Pro Farm. The weighted average cost of capital (“WACC”) rate has been estimated based on the market capital structure. For the cost of debt, the indebtedness cost of the CGUs was used. For the cost of equity, the discount rate is estimated based on the Capital Asset Pricing Model (CAPM). The value assigned is consistent with external sources of information. Budgeted market share of joint ventures and other customers The projected revenue from the products and services of the CGUs has been estimated by the management based on market penetration data for comparable products and technologies and on future expectations of foreseen economic and market conditions. The value assigned is consistent with external sources of information. Budgeted product prices The prices estimated in the revenue projections are based on current and projected market prices for the products and services of the CGUs. The value assigned is consistent with external sources of information. Growth rate used to extrapolate future cash flow projections to terminal period The growth rate used to extrapolate the future cash flow projections to terminal period is 2%. The value assigned is consistent with external sources of information. Management believes that any reasonably possible change in any of these key assumptions would not cause the aggregate carrying amount of the CGU to exceed its recoverable amount. 7.10. Investment properties 06/30/2023 06/30/2022 06/30/2021 Investment properties 3,589,749 — — 3,589,749 — — On May 3, 2023, the Group acquired a property from a client as a collection of its commercial debt. To date, we have not determined its future use and therefore it was classified as investment property. The book value of the investment property does not differ significantly from its fair value. 7.11. Trade and other payables 06/30/2023 06/30/2022 06/30/2021 Current Trade creditors 104,211,238 94,653,017 51,389,515 Shareholders and other related parties (Note 17) 35,292 44,579 52,864 Trade creditors - Parent company (Note 17) 644,191 670,730 193,718 Trade creditors - Joint ventures and associates (Note 17) 41,402,594 29,082,325 17,669,027 Taxes 3,561,058 1,265,771 2,556,945 Miscellaneous 953,301 133,198 229,339 150,807,674 125,849,620 72,091,408 The trade and other payables include debts with grain producers. These debts represent payment obligations contracted by purchase contracts, which give the producer the right to set the price at any time between the delivery date and a future date. Those debts that are not fixed at closing are valued at their fair value and debts with a price set by the producer at their amortized cost. The book value of financial instruments in this note is reasonable. 7.12. Borrowings 06/30/2023 06/30/2022 06/30/2021 Current Bank overdrafts — — 32,838 Bank borrowings 61,303,952 48,305,535 33,684,287 Corporate bonds 35,547,510 12,845,934 24,742,752 Trust debt securities 7,296,506 6,492,733 3,470,448 Net loans payables- Parents companies and related parties to Parent (Note 17) 3,491,691 3,657,266 3,578,921 Subordinated loan — — 11,276,611 107,639,659 71,301,468 76,785,857 Non-current Bank borrowings 10,663,266 9,912,901 4,161,827 Corporate bonds 50,007,680 61,264,268 37,826,641 Net loans payables- Parent companies and related parties to Parent (Note 17) — 3,000,000 6,000,000 60,670,946 74,177,169 47,988,468 The carrying value of some borrowings as of June 30, 2023 are measured at amortized cost differ from their fair value. The following fair values measured are based on discounted cash flows (Level 3) due to the use of unobservable inputs, including own credit risk. 06/30/2023 06/30/2022 06/30/2021 Amortized Amortized Amortized cost Fair value cost Fair value cost Fair value Current Bank borrowings 60,302,563 57,209,155 48,305,535 46,589,131 33,684,287 32,770,615 Corporate Bonds 35,547,510 34,725,828 12,845,934 12,467,941 24,742,752 24,085,087 Non-current Bank borrowings 10,663,266 10,374,646 9,912,901 9,344,755 4,161,827 3,864,666 Corporate Bonds 50,007,680 47,014,542 61,264,268 56,550,746 37,826,641 32,656,097 7.13. Secured Notes Secured Guaranteed Notes On August 5, 2022, the 25% of the outstanding capital of the convertible note that we had issued in 2020 and which the 75% was already converted into shares on March 16, 2022, were converted into 1.5 million shares. Bioceres has repurchased such shares for $24 million issuing the “The Secured Guaranteed Notes”. The Secured Guaranteed Notes due 2026 mature 48 months after the issue date and bear interest at 9.0% from the issue date through 24 months after the issue date, 13.0% from 25 through 36 months after the issue date and 14.0% from 37 through 48 months after the issue date. Interest is payable semi-annually. The Secured Guaranteed Notes due 2026 have no conversion rights into our ordinary shares. The carrying value the Secured Guaranteed Notes as of June 30, 2023 are measured at amortized cost. Its fair value based on discounted cash flows, using a fair interest rate, would amount to $25.1 million. Secured Convertible Guaranteed Notes On August 8, 2022, we issued the Secured Guaranteed Convertible Notes for a total principal amount of $55 million. The notes have a 4- year maturity and accrue interest at an annual interest rate of 9%, of which 5% is payable in cash and 4% in-kind. At any time up to maturity the note holders might opt to convert the outstanding principal amount into common shares of Bioceres at a strike price of $18 per share. The Company can repurchase the notes voluntarily 30 months after the issue date. At inception, the fair value of the liability component of the Secured Convertible Guaranteed Notes was measured using a discount rate of 13.57% . The carrying value the Secured Convertible Guaranteed Notes as of June 30, 2023 are measured at amortized cost. Its fair value based on discounted cash flows, using a fair interest rate, would amount to $51.9 million. Under the terms of the Secured Convertible Guaranteed Notes, the Group is in compliance with covenants. 7.14. Employee benefits and social security 06/30/2023 06/30/2022 06/30/2021 Current Salaries, accrued incentives, vacations and social security 9,388,639 7,337,774 2,341,351 Key management personnel (Note 17) 218,068 281,347 2,338,727 9,606,707 7,619,121 4,680,078 7.15. Deferred revenue and advances from customers 06/30/2023 06/30/2022 06/30/2021 Current Advances from customers 9,216,032 5,895,313 6,277,313 Deferred revenue (Note 6) 15,659,630 — — 24,875,662 5,895,313 6,277,313 Non-current Advances from customers 620,893 — — Deferred revenue (Note 6) 1,436,912 — — 2,057,805 — — 7.16. Provisions 06/30/2023 06/30/2022 06/30/2021 Provisions for contingencies 891,769 603,022 449,847 891,769 603,022 449,847 The Group has recorded a provision for probable administrative, judicial and out-of-court proceedings that could arise in the ordinary course of business, based on a prudent criterion according to its professional advisors and on Management’s assessment of the best estimate of the amount of possible claims. These potential claims are not likely to have a material impact on the results of the Group’s operations, its cash flow or financial position. Management considers that the objective evidence is not enough to determine the date of the eventual cash outflow due to a lack of experience in any similar cases. However, the provision was classified under current or non-current liabilities, applying the best prudent criterion based on Management’s estimates. There are no expected reimbursements related to the provisions. The roll forward of the provision is in Note 7.17. In order to assess the need for provisions and disclosures in its consolidated financial statements, Management considers the following factors: (i) nature of the claim and potential level of damages in the jurisdiction in which the claim has been brought; (ii) the progress of the eventual case; (iii) the opinions or views of tax and legal advisers; (iv) experience in similar cases; and (v) any decision of the Group`s management as to how it will respond to the eventual claim. 7.17. Changes in allowances and provisions Additions Currency from business Uses and conversion Item 06/30/2022 Additions combination reversals difference 06/30/2023 DEDUCTED FROM ASSETS Allowance for impairment of trade debtors (7,142,252) (1,327,385) — 1,797,648 (753,615) (7,425,604) Allowance for obsolescence (1,104,750) (1,066,777) (531,232) 690,503 (480,243) (2,492,499) Total deducted from assets (8,247,002) (2,394,162) (531,232) 2,488,151 (1,233,858) (9,918,103) INCLUDED IN LIABILITIES Provisions for contingencies (603,022) (221,008) (393,073) — 325,334 (891,769) Total included in liabilities (603,022) (221,008) (393,073) — 325,334 (891,769) Total (8,850,024) (2,615,170) (924,305) 2,488,151 (908,524) (10,809,872) Currency Uses and conversion Item 06/30/2021 Additions reversals difference 06/30/2022 DEDUCTED FROM ASSETS Allowance for impairment of trade debtors (5,858,503) (1,598,042) — 314,293 (7,142,252) Allowance for obsolescence (1,112,950) (849,641) 270,032 587,809 (1,104,750) Total deducted from assets (6,971,453) (2,447,683) 270,032 902,102 (8,247,002) INCLUDED IN LIABILITIES Provisions for contingencies (449,847) (292,732) — 139,557 (603,022) Total included in liabilities (449,847) (292,732) — 139,557 (603,022) Total (7,421,300) (2,740,415) 270,032 1,041,659 (8,850,024) Additions Currency from business Uses and conversion Item 06/30/2020 Additions combination reversals difference 06/30/2021 DEDUCTED FROM ASSETS Allowance for impairment of trade debtors (3,886,832) (698,741) (852,926) 284,727 (704,731) (5,858,503) Allowance for impairment of related parties (768) — — 565 203 — Allowance for obsolescence (1, |
