• Income tax benefit increased by $2.038 million
• Reclassification of borrowings from non-current to current liabilities
• Reallocation of profit/loss and assets/liabilities between operating segments

Avada Group Limited (ASX: AVD) has advised that it has made material adjustments to its audited financial statements for the year ended 30 June 2025. The key changes include:1) Income tax benefit increased by $2.038 million and deferred tax balances reduced due to finalisation of deferred tax calculations. This resulted in a reduction in loss after tax for the year by $2.04 million to $15.78 million and an increase in net assets by $2.04 million.2) Reclassification of borrowings from non-current to current liabilities in respect of certain principal repayments under the CBA loan facility, reducing net current assets by $1.125 million.3) Reallocation of profit/(loss) after tax and assets and liabilities between the company's cash generating units (operating segments) to accurately reflect the assets and liabilities of each segment.The company confirms that these changes do not affect operating revenue or cash flow from operations, and that the company remains in a strong financial position. The audited financial statements have been lodged with ASIC and are available on the company's website and the ASX platform.