Jayex Technology Limited
Annual Report 2023

Plain-text annual report

Jayex Technology Limited Appendix 4E Preliminary final report 1. Company details Name of entity: ABN: Reporting period: Previous period: Jayex Technology Limited 12 345 678 901 For the year ended 31 December 2023 For the year ended 31 December 2022 2. Results for announcement to the market $ Revenues from ordinary activities down 19.0% to 3,484,310 Loss from ordinary activities after tax attributable to the owners of Jayex Technology Limited down 45.8% to (3,930,155) Loss for the year attributable to the owners of Jayex Technology Limited down 45.8% to (3,930,155) Dividends There were no dividends paid, recommended or declared during the current financial period. Comments The loss for the consolidated entity after providing for income tax amounted to $3,930,155 (31 December 2022: $7,245,838). The company reorganised its operations at the start of the financial year and has operated a tight business model throughout the period. Sales volumes were lower than in the previous period due to the discontinuation of loss-making activities in the Australian and New Zealand markets and a change to the method for recognising hardware revenue made during the year. In addition, the company impaired fully the investment in Brainworks Inc. 3. Net tangible assets Net tangible assets per ordinary security 4. Control gained over entities Not applicable. 5. Loss of control over entities Not applicable. 6. Dividends Reporting Previous period Cents period Cents (2.43) (2.54) Current period There were no dividends paid, recommended or declared during the current financial period. Previous period There were no dividends paid, recommended or declared during the previous financial period. Jayex Technology Limited Appendix 4E Preliminary final report 7. Dividend reinvestment plans Not applicable. 8. Details of associates and joint venture entities Not applicable. 9. Foreign entities Details of origin of accounting standards used in compiling the report: Not applicable. 10. Audit qualification or review Details of audit/review dispute or qualification (if any): This report, and the accompanying summary consolidated financial statements are based on accounts which are in the process of being audited. 11. Attachments Details of attachments (if any): The unaudited Appendix 4E Preliminary Final Report of Jayex Technology Limited for the year ended 31 December 2023 is attached. 12. Subsequent Events On 29 January 2024 the company announced its intention to enter an incorporated joint Venture arrangement with MORPh Clinical Services Limited. On 31 January 2024 the company confirmed it had finalised a new A$500,000 term loan facility which is now operational in the business. 13. Signed Signed ___________________________ Date: 28 February 2024 Michael BoydNon-Executive Chair Jayex Technology Limited ABN 12 345 678 901 Appendix 4E Preliminary Final Report - 31 December 2023 Jayex Technology Limited Statement of profit or loss and other comprehensive income For the year ended 31 December 2023 Revenue from continuing operations Other income Expenses Raw materials and consumables used Employee benefits expense Depreciation and amortisation expense Impairment of investments Impairment of intangible assets Administrative, corporate and other expenses Marketing expenses Net foreign exchange gain Finance costs Consolidated Note 31 Dec 23 31 Dec 22 $ $ 3,484,310 4,303,996 242,427 202,936 (1,160,472) (2,980,848) - (1,498,092) - (1,902,185) (185,537) 83,264 (171,022) (916,882) (3,107,925) (373,742) - (3,748,022) (1,488,442) (73,551) - (919,068) Loss before income tax benefit from continuing operations (4,088,155) (6,120,700) Income tax benefit Loss after income tax benefit from continuing operations 158,000 86,179 (3,930,155) (6,034,521) Loss after income tax expense from discontinued operations 1 - (1,211,317) Loss after income tax benefit for the year attributable to the owners of Jayex Technology Limited (3,930,155) (7,245,838) Other comprehensive income Items that will not be reclassified subsequently to profit or loss Loss on the revaluation of equity instruments at fair value through other comprehensive income, net of tax Items that may be reclassified subsequently to profit or loss Foreign currency translation Other comprehensive income for the year, net of tax - (106,961) (155,266) (154,927) (155,266) (261,888) Total comprehensive income for the year attributable to the owners of Jayex Technology Limited (4,085,421) (7,507,726) Total comprehensive income for the year is attributable to: Continuing operations Discontinued operations (4,085,421) - (6,296,409) (1,211,317) (4,085,421) (7,507,726) The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes 1 Jayex Technology Limited Statement of profit or loss and other comprehensive income For the year ended 31 December 2023 Earnings per share for loss from continuing operations attributable to the owners of Jayex Technology Limited Basic earnings per share Diluted earnings per share Earnings per share for loss from discontinued operations attributable to the owners of Jayex Technology Limited Basic earnings per share Diluted earnings per share Earnings per share for loss attributable to the owners of Jayex Technology Limited Basic earnings per share Diluted earnings per share 5 5 5 5 5 5 Cents Cents (1.45) (1.45) (2.42) (2.42) - - (0.49) (0.49) (1.45) (1.45) (2.91) (2.91) The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes 2 Jayex Technology Limited Statement of financial position As at 31 December 2023 Assets Current assets Cash and cash equivalents Trade and other receivables Inventories Other Total current assets Non-current assets Other Financial assets at fair value through profit and loss Right-of-use assets Total non-current assets Total assets Liabilities Current liabilities Trade and other payables Contract liabilities Borrowings Lease liabilities Provision for income tax on capital gains Employee benefits Provisions Total current liabilities Non-current liabilities Borrowings Lease liabilities Employee benefits Total non-current liabilities Total liabilities Net liabilities Equity Issued capital Reserves Accumulated losses Total deficiency in equity Consolidated Note 31 Dec 23 31 Dec 22 $ $ 54,304 221,889 168,692 52,231 497,116 239,379 397,659 139,324 19,063 795,425 6,827 - - 6,827 39,363 1,414,828 50,463 1,504,654 503,943 2,300,079 2,404,174 1,039,041 2,759,937 - 39,728 32,148 251,506 6,526,534 1,824,437 1,099,514 4,136,825 51,764 39,940 27,281 236,344 7,416,105 819,978 - 2,455 822,433 1,208,889 3,461 1,727 1,214,077 7,348,967 8,630,182 (6,845,024) (6,330,103) 28,432,994 1,227,897 (36,505,915) 28,112,494 (1,866,837) (32,575,760) (6,845,024) (6,330,103) 2 3 3 4 The above statement of financial position should be read in conjunction with the accompanying notes 3 Jayex Technology Limited Statement of changes in equity For the year ended 31 December 2023 Issued Share based payments Forei gn exchange Financial asset Accumulated Consolidated capital $ reserve $ reserves $ reserve $ losses $ Total deficiency in equity $ Balance at 1 January 2022 28,112,494 12,187 (1,724,097) 57,091 (25,280,052) 1,177,623 Loss after income tax benefit for the year Other comprehensive income for the year, net of tax Total comprehensive income for the year Transactions with owners in their capacity as owners: Disposal of financial assets - - - - - - - - - - (7,245,838) (7,245,838) (154,927) (106,961) - (261,888) (154,927) (106,961) (7,245,838) (7,507,726) - 49,870 (49,870) - Balance at 31 December 2022 28,112,494 12,187 (1,879,024) - (32,575,760) (6,330,103) Consolidated Issued Share-based capital $ payment reserves $ Foreign exchange Accumulated reserves $ losses $ Total deficiency in equity $ Balance at 1 January 2023 28,112,494 12,187 (1,879,024) (32,575,760) (6,330,103) Loss after income tax benefit for the year Other comprehensive income for the year, net of tax Total comprehensive income for the year Transactions with owners in their capacity as owners: Capital raised, net of cost Conversion of notes and loans into options - - - - - - - (3,930,155) (3,930,155) (155,266) - (155,266) (155,266) (3,930,155) (4,085,421) 320,500 - - 3,250,000 - - - - 320,500 3,250,000 Balance at 31 December 2023 28,432,994 3,262,187 (2,034,290) (36,505,915) (6,845,024) The above statement of changes in equity should be read in conjunction with the accompanying notes 4 Jayex Technology Limited Statement of cash flows For the year ended 31 December 2023 Cash flows from operating activities Receipts from customers (inclusive of GST) Payments to suppliers and employees (inclusive of GST) Other revenue Interest and other finance costs paid Net operating cash (used in)/ generated by discontinued operations Income taxes paid Net cash used in operating activities Cash flows from investing activities Proceeds from disposal of investments Net cash used in the investing activities of discontinued operations Net cash from investing activities Cash flows from financing activities Proceeds from borrowings Repayment of borrowings Repayment of lease liabilities Proceeds from share placement (net of costs) Net cash used in the financing activities of discontinued operations Net cash from/(used in) financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at the beginning of the financial year Effects of exchange rate changes on cash and cash equivalents Cash and cash equivalents at the end of the financial year Consolidated 31 Dec 23 31 Dec 22 $ $ 3,599,607 (5,727,734) 4,237,280 (4,815,541) (2,128,127) 242,427 (258,772) - 158,000 (578,261) 133,887 (172,605) (39,944) (199,447) (1,986,472) (856,370) - - - 429,040 - 429,040 2,114,201 (630,000) - 320,500 - 266,642 (391,111) (136,676) - (20,569) 1,804,701 (281,714) (181,771) 239,379 (3,304) (709,044) 982,716 (34,293) 54,304 239,379 The above statement of cash flows should be read in conjunction with the accompanying notes 5 Jayex Technology Limited Notes to the financial statements 31 December 2023 Note 1. Discontinued operations Description During the previous year, the Group sold its on-premises Acute hospital queue management business to Canadian based medical technology company Vitalhub Inc. Under the agreement, Vitalhub acquired Jayex’s hospital contracts in both the UK and Australia for a consideration of £1.04 million (~$1.9 million AUD) in cash and £0.26 million (~$0.47million AUD) in Vitalhub shares (150,078 shares in total). Financial performance information Professional services expenses Foreign exchange gains/losses Depreciation and amortisation Other expense Impairment of intangible asset Impairment of plant and equipment Total expenses Loss before income tax expense Income tax expense Loss after income tax expense Gain on disposal before income tax Income tax expense Gain on disposal after income tax expense Loss after income tax expense from discontinued operations Details of the disposal Consideration from release of Escrow Gain on disposal before income tax ** Gain on disposal after income tax Consolidated 31 Dec 23 31 Dec 22 $ $ - - - - - - - - - - - - - - (14,131) 18,308 (98,540) (15,510) (974,388) (163,139) (1,247,400) (1,247,400) - (1,247,400) 36,083 - 36,083 (1,211,317) Consolidated 31 Dec 23 31 Dec 22 $ $ - - - 36,083 36,083 36,083 ** The gain on disposal related to the release of escrowed funds held which was previously recognised as a contingent asset. Closure of Whakaora Hou Limited Operations During the year ended 31 December 2022, the consolidated entity has closed its operations at Whakaora Hou Limited (WHL). The financial performance of the discontinued operations of WHL during the year as following: Financial performance information 6 Jayex Technology Limited Notes to the financial statements 31 December 2023 Note 1. Discontinued operations (continued) Revenue Professional services expenses Foreign exchange gains/losses Depreciation and amortisation Other expense Impairment of intangible asset Impairment of plant and equipment Total expenses Loss before income tax expense Income tax expense Loss after income tax expense Gain on disposal before income tax Income tax expense Loss on disposal after income tax expense Loss after income tax expense from discontinued operations Note 2. Financial assets at fair value through profit and loss Non-current assets Investment in Brainworks Reconciliation Reconciliation of the fair values at the beginning and end of the current and previous financial year are set out below: Opening fair value Exchange differences Impairment of investment Closing fair value Consolidated 31 Dec 23 31 Dec 22 - - - - - - - - - - - - (14,131) 18,308 (98,540) (15,510) (974,388) (163,139) (1,247,400) (1,247,400) - (1,247,400) - - (1,247,400) (1,247,400) Consolidated 31 Dec 23 31 Dec 22 $ $ - 1,414,828 1,414,828 83,264 (1,498,092) 1,368,846 45,982 - - 1,414,828 During the 2021 financial year, the Company invested $1.36 million in Brainworks to subscribe 1,234,566 Brainworks shares at an issue price of USD 0.81 for a total consideration of USD 1 million (equivalent to ÄUD 1.36 million). The investment was held at fair value with subsequent changes carried through the statement of profit or loss, however as at 31 December 2023 the investment was fully impaired. 7 Jayex Technology Limited Notes to the financial statements 31 December 2023 Note 3. Borrowings Current liabilities Bank loans Other Short Term Borrowings Convertible notes payable Non-current liabilities Bank loans Note 4. Issued capital Consolidated 31 Dec 23 31 Dec 22 $ $ 447,261 2,312,676 - 426,666 1,010,159 2,700,000 2,759,937 4,136,825 819,978 1,208,889 3,579,915 5,345,714 31 Dec 23 31 Dec 22 31 Dec 23 31 Dec 22 Shares Shares $ $ Consolidated Ordinary shares - fully paid 281,278,539 249,228,539 28,432,994 28,112,494 Movements in ordinary share capital Details Balance Balance Placement Balance Date Shares Issue price $ 1 January 2022 249,228,539 28,112,494 31 December 2022 2 March 2023 249,228,539 32,050,000 28,112,494 320,500 $0.01 31 December 2023 281,278,539 28,432,994 8 Jayex Technology Limited Notes to the financial statements 31 December 2023 Note 5. Earnings per share (continued) Note 5. Earnings per share Earnings per share for loss from continuing operations Loss after income tax attributable to the owners of Jayex Technology Limited Consolidated 31 Dec 23 31 Dec 22 $ $ (3,930,155) (6,034,521) Number Number Weighted average number of ordinary shares used in calculating basic earnings per share 270,595,206 249,228,539 Weighted average number of ordinary shares used in calculating diluted earnings per share 270,595,206 249,228,539 Basic earnings per share Diluted earnings per share Earnings per share for loss from discontinued operations Loss after income tax attributable to the owners of Jayex Technology Limited Basic earnings per share Diluted earnings per share Cents Cents (1.45) (1.45) (2.42) (2.42) Consolidated 31 Dec 23 31 Dec 22 $ $ - (1,211,317) Cents Cents - - (0.49) (0.49) Contingently issuable shares related to convertible notes and options are not included in the diluted earnings per share calculation as they are anti-dilutive. 9 

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