Kyckr Limited
ABN 38 609 323 257
Annual Report - 30 June 2021
Kyckr Limited
Contents
30 June 2021
1
Chairman's letter
2
Chief Executive Officer's letter
4
Corporate directory
6
Directors' report
7
Auditor's independence declaration
23
Statement of profit or loss and other comprehensive income
24
Statement of financial position
25
Statement of changes in equity
26
Statement of cash flows
27
Notes to the financial statements
28
Directors' declaration
55
Independent auditor's report to the members of Kyckr Limited
56
Shareholder information
59
Kyckr Limited
Chairman's letter
30 June 2021
2
Dear Shareholders,
The year ending June 2021 (‘FY21’) marked a significant milestone in the transformation of Kyckr from a transactional,
documents-based business to a fully SaaS based data business.
We largely completed this project at financial year end. The COVID pandemic continued to present a challenging set of
circumstances during the 2021 financial year. Notwithstanding the impact of the pandemic, Kyckr continued to progress its
strategy. As a result, the consolidated entity has started to see the first positive financial and operational outcomes
progressively throughout the reporting period.
For shareholders, this progress has been a long time coming. However, as outlined in more detail in our most recent quarterly
updates, we have now achieved solid momentum across all the key pillars of our business. At the same time, we have been
able to increase investment in both our platform and people as we look to take advantage of the market opportunity that exists
for Kyckr.
FY21 Results Overview
In summary, we:
• increased revenues to $2.7m (up 13% YOY) despite the substantial COVID impact
• delivered increases in key metrics of enterprise contracts with an Annual Recurring Revenue (‘ARR’) value of to $1.5m*
(up 300% YOY)
• made significant progress in securing new ARR Enterprise (4) and Partner (5) clients
• commenced FY22 with roll forward enterprise ARR of $1.5m as well as new revenue streams from product launches (UBO
Verify); tools (Enterprise Portal) and use cases (insurance, funds management and logistics)
• experienced an increase in expenses to $5.5m (up 12%) as we funded technology investments $1.7m (up 41%) to take
advantage of existing and new market opportunities
• undertook a post balance date capital raise of actual/committed funds of at least $5.94m to deliver on our strategic plan
*In this reporting period A$0.92m of full year revenues is from ARR.
Our CEO, Ian Henderson will expand on both our strategy and expectations of delivery further in his letter, but your Board is
confident that this foundational year will allow Kyckr to deliver in the coming years.
Governance
After the period end, we bid farewell to Benny Higgins and Jacqueline Kilgour, both Non-Executive Directors who had been
with Kyckr for a number of years. Instrumental in initiating the first steps of the Kyckr transformation journey, they remain
committed shareholders and we thank them for their contribution. We also welcomed George Venardos, the former CFO of
the Insurance Australia Group Limited (‘IAG’), and also former Chair of numerous ASX listed companies, whose deep
experience will support the acceleration of the Kyckr business.
As part of the renewal process, your Board is strongly of the view to ‘under promise and over deliver’ and accordingly focused
on increasing the level of transparency and communication to investors and would be investors alike. The first tangible results
of this have been to reduce the size of the Board; a cut in Board Fees to a nominal $1 (until 31 December 2021); and an
increased tempo in Board engagement to support the Executive Management team in strategy delivery.
FY22 Outlook
The potential for Kyckr, as always, is significant. Our product set has only scratched the surface of the Know Your Customer
market opportunity (Total Addressable Market of at least US$1 billion)**, while the platform itself lends itself readily to new
use cases and product offerings in adjacent markets.
**(source: Estimated Size of e-KYC Market in 2026, Facts & Factors, 2021)
Following our recent post balance date capital raise and continued management focus on execution, the Board considers the
Kyckr business to have sufficient funding and direction to deliver on our core opportunity, as well as build out selected new
use cases and market adjacencies for the benefit of our shareholders and customers alike.
Kyckr Limited
Chairman's letter
30 June 2021
3
It is also appropriate that the Board acknowledges your long term support as shareholders. While it has been a long journey,
our FY21 results to date demonstrate the start of our turnaround, and the renewed focus on the consolidated entity’s
stewardship of investor capital.
On behalf of the Board, I would like to thank the CEO, Ian Henderson, and the whole team at Kyckr. The Executive and staff
are deeply committed to the business, and by in large act as owners rather than just employees. In a competitive employment
landscape not only did they accept little or no pay rises, they pivoted to a working from home challenge for large parts of FY21,
and many became investors in a personal capacity.
Your investment could not be in safer or more committed hands.
Finally, it is customary these days to say ‘stay well, stay safe’. To that, we add ‘Thank-you’ again for your support and we look
to delivering in FY22 following on from this, a foundational year.
Regards,
____________________
Rajarshi M. Ray
Chair, Kyckr
22 September 2021
Kyckr Limited
Chief Executive Officer's letter
30 June 2021
4
Dear Shareholders,
Strategic Progress
While the COVID pandemic continued to cast a shadow on new business development activities during FY21, a conscious
decision was taken to accelerate the completion of the next set of strategic building blocks of Kyckr’s turnaround, in anticipation
of global lockdowns easing leading to an acceleration of corporate onboarding activity. The final components were
implemented to transform Kyckr from a transactional provider of corporate registry data and documents to a provider of
registry-sourced digital information services on a recurring licence fee basis.
Despite the impact COVID had on most businesses globally, Kyckr continued to make encouraging progress during the
financial year focusing on growing our Enterprise division. We delivered on what we set ourselves to achieve, and in the
period, there were 4 new enterprise client wins, all of which came with minimum annual revenue commitments. This included
clients wins in new segments of the financial services market such as life insurance and investment management, as well as
wins from adjacent market segments, notably legal and professional services.
The most pleasing achievement of the year was the significant growth in enterprise revenue coming from existing clients,
supported by the dedicated client support resource team recruited during the period year. Only one long-standing client
remains to be transitioned away from a pay-as-you-go contractual arrangement to a pre-paid ARR contracts, and this transition
is expected to occur in first half financial year 2022 (‘H1 FY22’). All those clients who transitioned did so with an uplift in
revenue commitment averaging 22%.
Kyckr continued to invest in its people, platform and new service development. An appropriate balance was achieved between
continued investment and careful cost management in a period where revenue opportunities were constrained. Significant
progress was made with the transition to modern, fully cloud-based services and the retirement of legacy infrastructure. This
has enhanced scalability and extended structured data Application Programming Interfaces (‘APIs’). In parallel, a new
enterprise-focused portal is in development with full launch anticipated in H1 FY22.
As Ultimate Beneficial Ownership (‘UBO’) discovery is the current focus of attention from Regulators, we recently completed
the development of the first phase of our UBO Verify service, our recursive UBO assessment tool. We are encouraged to
report that post-period end two existing clients initiated their assessments of the service, and access to further 7 UBO registers
were made available via the Kyckr platform.
Developing partnership relationships, a core component of our go-to-market strategy, continued with a further 5 new partners
signing up to access Kyckr services. In time, this will enhance margins via reduced operating cost and reduced overall cost of
new client acquisition.
There was definite momentum emerging in Q3 and Q4 as reflected in our quarterly announcements. Engagement levels
increased across existing clients, new prospects and existing and potential partners. This is demonstrated in the significant
momentum witnessed in Annual Recurring Revenue and the important benefit of revenue certainty it bestows.
Results
Kyckr’s full year revenues increased by 13.3% to $2.7 million, and despite the COVID-related impacts on corporate onboarding
activity experienced, the international easing of lockdowns in H2 FY21 led to an acceleration in business activity with H2 FY21
revenues 14% higher than those achieved in H1 FY20.
Revenue growth was driven by Kyckr’s Enterprise business with revenues up 28% on prior year through a combination of
investment in both enterprise client and partner engagement.
The consolidated entity has made a conscious decision to reduce the emphasis on non-enterprise online activities, instead
focusing on much more lucrative revenue opportunities from international corporate clients.
ARR grew quarter on quarter throughout FY21 with contracted enterprise ARR at year end being at $1.5m (up 300% YOY).
Of total full year revenues of A$2.7m, A$0.92m was from enterprise ARR.
Kyckr reported an increased Net Loss After Tax of $5.5 million (FY20 $4.9m) but lower than FY19 ($6.1m) as it balanced the
need for continued investment in its platform and product capabilities in anticipation of a post-COVID economic recovery with
the need to diligently manage costs while revenues were adversely impacted by the pandemic.
Kyckr Limited
Chief Executive Officer's letter
30 June 2021
5
The Future
We’ve entered FY22 in the strongest position in Kyckr’s history and we are optimistic about the opportunities on the near-term
horizon.
KYC regulatory hurdles continue to increase as the battle against all forms of financial crime intensifies. Ultimate beneficial
ownership discovery is the current focus of attention from Regulators and Kyckr is at the forefront of developments in this
area. We are making UBO register access available on our platforms as soon as they are initiated by the local authorities, and
to this extent, we have launched the first phase of UBO Verify.
The momentum witnessed in FY21 indicates the consolidated entity is well positioned for the emerging post-COVID economic
recovery. Existing customers are increasingly integrated into Kyckr’s platforms and the new business and partner pipelines
continue to grow and are at record levels.
Kyckr will continue to look to diversify beyond the traditional client base of banks and payments service providers into other
regulated businesses. We will also seek to develop use cases outside of regulated financial services – areas such as Logistics
and Supply Chain Management, Marketplaces and Trading Platforms and other related opportunities.
The positive FY21 results have been achieved by working together as a team, and therefore I would like to extend my thank
you to the dedicated team at Kyckr. Our employees have demonstrated resilience and shown great commitment navigating
through these unprecedented times while working predominantly from home in the last year.
We remain cognisant of the ongoing potential impacts from COVID and we continue to work closely with clients to minimise
disruption and ensure strong business continuity.
I join the Board in thanking you, our shareholders, for your continued support.
We are in a bolstered operational and financial position to build on this positive momentum, and I look forward to updating you
on our progress in the year ahead.
____________________
Ian Henderson
Chief Executive Officer
22 September 2021
Kyckr Limited
Corporate directory
30 June 2021
6
Directors
Rajarshi Ray
Karina Kwan
George Venardos
Company secretary
Bill Hundy
Notice of annual general meeting
The details of the annual general meeting of Kyckr Limited are:
Monday, 15 November 2021 at 8:30am at:
Via on-line video conference
and/or
Level 16, 1 Market Street
Sydney
NSW 2000
Registered office
Level 12, 680 George Street
Sydney
NSW 2000
Tel: +61 2 8280 7100
Principal place of business
ArcLabs Research Centre,
W.I T. Campus, Carriganore,
Waterford, Ireland,
X91 P20H
Tel: +353 51 306282
Share register
Boardroom Pty Limited
Level 12, 225 George Street
Sydney
NSW 2000
Tel: +61 2 9290 9600
Auditor
Nexia Sydney Audit Pty Ltd ('Nexia Sydney Audit')
Level 16, 1 Market Street
Sydney
NSW 2000
Stock exchange listing
Kyckr Limited shares are listed on the Australian Securities Exchange (ASX code:
KYK)
Business objectives
Kyckr Limited has used cash and cash equivalents held at the time of listing and the
time since listing to provide technology solutions to help protect against money
laundering, fraud and tax evasion, in a way consistent with its stated business
objectives. Kyckr aims to provide the pre-eminent automated technology solution to
maintain up to date critical company identity information, in place of the traditional
error and fraud prone manual people based processes.
Corporate Governance Statement
The directors and management are committed to conducting the business of Kyckr
Limited in an ethical manner and in accordance with the high standards of corporate
governance. Kyckr Limited has adopted and has substantially complied with the ASX
Corporate Governance Principles and Recommendations (Fourth Edition)
(‘Recommendations’) to the extent appropriate to the size and nature of its
operations.
The Corporate Governance Statement, which sets out the corporate governance
practices that were in operation during the financial year and identifies and explains
any Recommendations that have not been followed was approved by the Board of
directors at the same time as the Annual Report and can be found on the 'About us'
page at http://www.kyckr.com/
Kyckr Limited
Directors' report
30 June 2021
7
The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as
the 'consolidated entity' or 'Group') consisting of Kyckr Limited (referred to hereafter as the 'company' or 'parent entity') and
the entities it controlled at the end of, or during, the year ended 30 June 2021.
Directors
The following persons were directors of Kyckr Limited during the whole of the financial year and up to the date of this report,
unless otherwise stated:
Mr Rajarshi Ray - Chairman (appointed Non-Executive Director on 1 December 2020, appointed Chair on 18 August 2021)
Ms Karina Kwan - Non-Executive Director
Mr George Venardos - Non-Executive Director (appointed on 18 August 2021)
Mr Benny Higgins - Non-Executive Chairman (resigned on 18 August 2021)
Mr John Van Der Wielen - Non-Executive Director (resigned on 1 December 2020)
Ms Jacqueline Kilgour - Non-Executive Director (resigned on 18 August 2021)
Principal activities
The principal activity of the Group during the period consisted of the provision of data and technology solutions to accelerate
customer acquisition and protect against money laundering, fraud and tax evasion. Kyckr’s solutions are connected to over
200 regulated primary sources, in over 120 countries, providing real-time company registry information for an estimated 170
million businesses globally. Kyckr provides automated technology solutions to improve the efficiency and effectiveness of
Corporate Know Your Client ('KYC') processes.
Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Review of operations
The loss for the consolidated entity after providing for income tax amounted to $5,543,134 (30 June 2020: $4,907,827).
Refer to the Chairman's letter and Chief Executive Officer's letter for further detail.
Significant changes in the state of affairs
On 9 July 2020, the company issued 41,323,473 ordinary shares at a price of $0.08 per share to institutional, sophisticated
and professional investors and through an offering to existing shareholders. The total proceeds from the issuance of these
securities amounted to $3,305,878 (before transaction costs).
On 12 January 2021, 3,000,000 unlisted options were granted to Ian Henderson, Chief Executive Officer. The exercise price
of the options of $0.114 was 48% higher than the market price of the shares at the date of grant. The vesting of these options
is conditional on continued employment until the vesting date, being 3 years from grant date. The contractual life of each
option is 4 years.
There were no other significant changes in the state of affairs of the consolidated entity during the financial year.
Matters subsequent to the end of the financial year
On 30 August 2021, pursuant to a private placement to professional and sophisticated investors, the company issued
85,962,465 ordinary shares at 4 cents each raising $3.4 million before costs (Tranche 1). The company has obtained firm
commitments from professional and sophisticated investors for the issue of 64,037,535 additional ordinary shares at $0.04
per share that will raise a further $2.6 million (Tranche 2). This issue is subject to shareholder approval at a meeting to be
held in late September 2021.
A Share Purchase Plan was offered to shareholders on 1 September 2021. The Plan closes on 22 September 2021 and is
expected to raise over $500,000.
Kyckr Limited
Directors' report
30 June 2021
8
The consequences of the Coronavirus (COVID-19) pandemic are continuing to be felt around the world, and its impact on
the consolidated entity, if any, has been reflected in its published results to date. Whilst it would appear that control measures
and related government policies, including the roll out of the vaccine, have started to mitigate the risks caused by COVID-
19, it is not possible at this time to state that the pandemic will not subsequently impact the consolidated entity's operations
going forward. The consolidated entity now has experience in the swift implementation of business continuation processes
should future lockdowns of the population occur, and these processes continue to evolve to minimise any operational
disruption. Management continues to monitor the situation both locally and internationally.
No other matter or circumstance has arisen since 30 June 2021 that has significantly affected, or may significantly affect the
consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial
years.
Likely developments and expected results of operations
Information on likely developments in the operations of the consolidated entity are included in the Chairman’s letter and Chief
Executive Officer’s letter on pages 2 to 5.
The directors have identified the following business risks which may impact on the future performance of the Group:
Competition
The Group’s intellectual property rights are not protected by any registered patents in any jurisdiction. This may allow
competitors to develop products functionally similar to the Group’s existing products. The existence of competitors with
products that are functionally similar to the Group’s existing products could result in loss of customers and decline in revenue,
each of which could adversely affect the Group’s business and operating results.
Key Personnel Risk
The successful execution of the Group’s business model depends on a management team with the necessary talent and
experience to integrate and manage the Group’s growth plans. The loss of key management personnel could adversely
affect the Group’s business, results of operations or financial conditions and performance.
Current and Exchange Rate Fluctuations
The financial contribution of the Group will depend on the movement in exchange rates between the Australian Dollar and a
number of other foreign currencies. The exchange rate between various currencies may fluctuate substantially and the result
of these fluctuations may have an adverse impact on the Group’s operating results and financial position. The Group has not
entered into forward exchange contracts to hedge its anticipated purchase and sale commitments denominated in foreign
currencies.
Environmental regulation
The consolidated entity is not subject to any significant environmental regulation under Australian Commonwealth or State
law.
Kyckr Limited
Directors' report
30 June 2021
9
Information on directors
Name:
Mr Rajarshi Ray
Title:
Independent Non-Executive Director (appointed on 1 December 2020), Chairman
(appointed on 18 August 2021)
Qualifications:
BInf Tech; Grad Dip Accounting; FCA (Australia); SFIN (Australia); GAICD (Australia)
Experience and expertise:
Rajarshi (Raj) Ray’s career has encompassed extensive executive experience in
Financial Services, IT and SaaS, including as CEO. He has spent a significant portion
of his career internationally, splitting his time between Asia, Europe and the U.S.
He has extensive experience in business and education, having lectured at universities
in IT, Accounting and Law and was and is routinely engaged by the Institute of
Chartered Accountants; the Financial Services Institute of Australia and the Australian
Securities and Investment Commission.
In addition to his recent executive roles, Raj is currently a Non-Executive Director at
LiveHire (ASX: LVH) and was previously a Non-Executive Director at Class (ASX: CL1)
and CSG (ASX: CSV) as well as a number of pro-bono/charitable organisations in
Agriculture, Education and Tourism.
Other current directorships:
LiveHire (ASX: LVH)
Former directorships (last 3 years): Class Limited (ASX: CL1); CSG (ASX: CSV)
Special responsibilities:
Member of the Audit and Risk Management Committee and the Nomination and
Remuneration Committee
Interests in shares:
865,480 ordinary shares
Interests in options:
None
Interests in rights:
None
Name:
Ms Karina Kwan
Title:
Independent Non-Executive Director
Qualifications:
Karina holds a Bachelor of Economics from the University of Sydney, is a CPA Australia
Fellow and a Graduate of the Australian Institute of Company Directors.
Experience and expertise:
Karina has led an accomplished executive career spanning over 30 years in the
financial services industry. Her last executive role was CFO/General Manager of the
corporate centre divisions of the Commonwealth Bank of Australia. Prior to this, she
spent 18 years with Citi, of which the last 3 years was in the role of Chief Financial
Officer for Australia and New Zealand. During her time at Citi, she was the Corporate
Treasurer for 12 years, during which time she also chaired the Institutional Bank’s New
Product Approval Committee.
Karina is a Non-Executive director of: Nulis Nominees (Australia) Limited (trustee of the
MLC superannuation funds); Newcastle Permanent Building Society Limited; WAM
Active Limited (a member of the Wilson Asset Management group). She is also an
Advisory Board member of the University of Sydney Business School and of a number
of fin-tech and other companies, namely: Split Payments Pty Ltd; 1Wordflow; Open
Orbit and Serendis. Karina is also an Adjunct Professor of the Discipline of Finance at
the University of Business School.
Other current directorships:
Non-Executive Director of WAM Active Limited (ASX: WAA)
Former directorships (last 3 years): None
Special responsibilities:
Chair of the Audit and Risk Management Committee
Interests in shares:
390,000 ordinary shares
Interests in options:
279,950 options over ordinary shares
Kyckr Limited
Directors' report
30 June 2021
10
Name:
Mr George Venardos
Title:
Independent Non-Executive Director
Qualifications:
George holds a Bachelor of Commerce in Accounting, Finance and Systems from the
University of NSW. He is a Fellow of the Institute of Chartered Accountants in Australia
and New Zealand and the Australian Institute of Company Directors. He holds a
Diploma in Corporate Management, is a Chartered Governance Professional and a
Fellow of the Governance Institute of Australia.
Experience and expertise:
George is a seasoned Non-Executive director with experience across insurance,
wealth management, funds management, banking, technology development and the
oil & gas sector. He is the former Chairman of IOOF Holdings Ltd, Guild Group, Ardent
Leisure Group and BluGlass Ltd. His former executive positions include CFO of the
NRMA Group, Insurance Australia Group and for 10 years Chairman of the Finance
and Accounting Committee of the Insurance Council of Australia. George also held the
position of Finance Director of the Legal & General Group in Australia and was named
Insto Magazines CFO of the year in 2003.
Other current directorships:
None
Former directorships (last 3 years): Non-Executive Director of IOOF Holdings Ltd (ASX: IFL) (resigned on 28 November
2019)
Special responsibilities:
Chairman of the Nomination and Remuneration Committee
Interests in shares:
250,000 ordinary shares
Interests in options:
None
Kyckr Limited
Directors' report
30 June 2021
11
Name:
Mr Benny Higgins (resigned on 18 August 2021)
Title:
Non-Executive Chairman
Qualifications:
Benny holds a First Class Honour's degree in Mathematics from the University of
Glasgow and is a Fellow of the Faculty of Actuaries. He is a Fellow of the Chartered
Institute of bankers in Scotland and a Fellow of the Royal Society of Edinburgh. In 2018
he was announced as a Visiting Professor at Strathclyde University and the Edinburgh
Business School based in Heriot-Watt University.
Experience and expertise:
Benny has been a prominent international business leader for over 30 years, leading
businesses in financial services and retail.
Benny began his career at Standard Life in 1983 where he joined as an actuarial
student and became a member of the Standard Life Group Executive in 1996. In 1997,
he moved to RBS to become Chief Executive of Retail Banking. He was with RBS until
2015, during which time he led the successful integration of NatWest Retail Banking -
one of the largest mergers ever undertaken in UK banking. He became Chief Executive
Officer of HBOS plc in 2006 before joining Tesco Bank as Chief Executive in 2008.
Under Benny’s leadership, Tesco Bank grew to become one of the most established
‘new’ banks in the UK, serving more than 6 million customers and employing over 4,000
people in Edinburgh, Glasgow and Newcastle. In addition to his role at Tesco Bank,
Benny was also the Group Strategy Director for Tesco PLC and was a member of the
Tesco Executive Committee. Benny retired from Tesco in February 2018.
In September 2017, Benny was asked by the Scottish Government to lead a project
team to establish the creation of a Scottish National Investment Bank. In June 2018,
Benny was announced as the strategic adviser of the Scottish National Investment
Bank, leading its formation.
Outside of financial services, Benny is Executive Chairman of the Buccleuch Group,
Chairman of the National Galleries of Scotland, Chairman of Sistema Scotland,
Chairman of Forster Chase Advisory Limited, Non-Executive Chairman, Markerstudy,
Non-Executive Chairman, AAB Wealth (Anderson Anderson & Brown Wealth),
Chairman, The Fine Art Society (London & Edinburgh), Chairman, Edinburgh Fringe
Society, Trustee of Burrell Renaissance and Non-Executive Director of Arabian
Centres.
Benny graduated with a First Class Honours degree in Mathematics from the University
of Glasgow and he was awarded a University Blue in 1983. He is a Fellow of the Faculty
of Actuaries, a Fellow of the Chartered Institute of Bankers in Scotland, and a Fellow
of the Royal Society of Edinburgh. He is an Honorary Professor at the University of
Glasgow, Honorary Professor at Edinburgh University, Visiting Professor at Strathclyde
University, Honorary Professor at Edinburgh Business School, Heriot-Watt University,
Doctor of University, University of Glasgow and University of Glasgow, Court member
of Finance Committee.
Other current directorships:
None
Former directorships (last 3 years): None
Special responsibilities:
None
Interests in shares:
1,625,000 ordinary shares
Interests in options:
2,000,000 options over ordinary shares
Kyckr Limited
Directors' report
30 June 2021
12
Name:
Mr John Van Der Wielen (resigned on 1 December 2020)
Title:
Non-Executive Director
Qualifications:
MBA FAICD
Experience and expertise:
John has over 30 years of experience in insurance, wealth management, private
banking and investments including executive positions within several global financial
services groups, commencing as Chief Executive Officer and Managing Director of
HBF in May 2017. This involved leading a number of acquisitions, integration and
restructuring programs and senior executive board membership of listed ASX, FTSE,
European and Asian entities. John is experienced in fronting stock markets, liaising
with direct investors and meeting analysts on company strategy and performance in
many international markets.
John was previously CEO of Friends Life UK and International in London and prior to
this he was the Managing Director Wealth at ANZ Bank in Sydney.
Most recently John has been a Senior Adviser for Blackstone in the financial services
arena and an independent non-executive on several boards.
He holds an MBA from the University of Western Australia and has studied at London
Business School and Oxford University. He is a Fellow of the Australian Institute of
Company Directors.
John is an Advisory Member of the Business School for the University of Western
Australia and has been appointed as a Non-Executive Director of the Royal Flying
Doctor Service Western Australia.
Other current directorships:
None
Former directorships (last 3 years): None
Special responsibilities:
None
Interests in shares:
2,757,109
Interests in options:
None
Kyckr Limited
Directors' report
30 June 2021
13
Name:
Jacqueline Kilgour (resigned on 18 August 2021)
Title:
Non-Executive Director
Qualifications:
Jacqueline qualified as a Solicitor in England and Wales and is a member of the Law
Society of England and Wales, Chartered Institute for Securities & Investment,
Securities Industry and Financial Markets Association (SIFMA) and the Society of Trust
and Estate Practitioners (STEP) and has passed New York Stock Exchange Series 14
(Compliance Official).
Experience and expertise:
Jacqueline brings more than 30 years’ financial services experience in regulatory
compliance, anti-money laundering (AML) and corporate governance matters. She has
successfully dealt with companies and regulators across a number of jurisdictions.
Jacqueline held the role of Managing Director in Citigroup's Corporate and Investment
Banking division in New York where she had responsibility globally for anti-money
laundering, and compliance for Global Transaction Services in over 100 countries plus
a number of central Compliance functions.
In addition to her Citigroup experience, Jacqueline was European General Counsel and
Company Secretary for Instinet, the institutional agency-only broker part of Nomura
Group, where she was responsible for legal, compliance and corporate governance in
Europe and Asia-Pacific. Prior to that, Jacqueline was Co-Head of European
Compliance at Salomon Brothers and also worked in the Legal Department of a large
energy utility.
She has practised law at Cameron Markby Hewitt (now CMS) in London and Blake
Dawson Waldron (now Ashurst) in Melbourne, Australia. Jacqueline currently acts as
a Non-Executive Director for a regulated entity in the UK and was until recently the
Managing Director of a regulatory compliance and governance consultancy firm and a
Non-Executive Directors a second regulated entity in the UK and another regulated in
the US.
Other current directorships:
None
Former directorships (last 3 years): None
Special responsibilities:
None
Interests in shares:
625,000 ordinary shares
Interests in options:
279,950 options over ordinary shares
'Other current directorships' quoted above are current directorships for listed entities only and excludes directorships of all
other types of entities, unless otherwise stated.
'Former directorships (last 3 years)' quoted above are directorships held in the last 3 years for listed entities only and excludes
directorships of all other types of entities, unless otherwise stated.
Company secretary
Bill Hundy was appointed company secretary on 16 March 2020. He is a highly experienced company secretary and has
held roles at major listed public companies for over three decades in the mining, energy and manufacturing industries
including as company secretary and legal counsel for Origin Energy Limited, Email Limited, Placer Pacific Limited and
Kidston Gold Mines Limited. He has extensive experience in company secretarial practice, corporate governance,
communications, compliance and risk management.
Bill has been admitted as a solicitor to the Supreme Court of New South Wales and holds a Bachelor of Laws, Bachelor of
Commerce (Economics), a Bachelor of Science (Physics, Geology and Geophysics) and a Diploma of Corporate
Management. He is a Fellow of the Governance Institute of Australia and the Chartered Governance Institute and a Fellow
of the Australian Institute of Company Directors.
Kyckr Limited
Directors' report
30 June 2021
14
Meetings of directors
The number of meetings of the company's Board of Directors ('the Board') and of each Board committee held during the year
ended 30 June 2021, and the number of meetings attended by each director were:
Full Board
Nomination and
Remuneration Committee
Audit and Risk Management
Committee
Attended
Held
Attended
Held
Attended
Held
Benny Higgins
12
12
1
1
3
3
Karina Kwan
12
12
1
1
3
3
Jacqueline Kilgour
12
12
1
1
2
2
Rajarshi Ray
9
9
1
1
2
2
John Van Der Wielen
3
3
-
-
1
1
Held: represents the number of meetings held during the time the director held office or was a member of the relevant
committee.
Remuneration report (audited)
The remuneration report details the key management personnel remuneration arrangements for the consolidated entity, in
accordance with the requirements of the Corporations Act 2001 and its Regulations.
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the
activities of the entity, directly or indirectly, including all directors.
The remuneration report is set out under the following main headings:
●
Principles used to determine the nature and amount of remuneration
●
Details of remuneration
●
Service agreements
●
Share-based compensation
●
Additional disclosures relating to key management personnel
Principles used to determine the nature and amount of remuneration
The objective of the consolidated entity's executive reward framework is to ensure reward for performance is competitive
and appropriate for the results delivered. The framework aligns executive reward with the achievement of strategic objectives
and the creation of value for shareholders, and it is considered to conform to the market best practice for the delivery of
reward. The Board ensures that executive reward satisfies the following key criteria for good reward governance practices:
●
competitiveness and reasonableness;
●
acceptability to shareholders;
●
performance linkage / alignment of executive compensation; and
●
transparency.
The Nomination and Remuneration Committee is responsible for determining and reviewing remuneration arrangements for
its directors and executives. The performance of the consolidated entity depends on the quality of its directors and executives.
The remuneration philosophy is to attract, motivate and retain high performance and high quality personnel.
The reward framework is designed to align executive reward to shareholders' interests. The Board has considered that it
should seek to enhance shareholders' interests by:
●
having economic profit as a core component of plan design;
●
focusing on sustained growth in shareholder wealth, consisting of dividends and growth in share price, and delivering
constant or increasing return on assets as well as focusing the executive on key non-financial drivers of value; and
●
attracting and retaining high calibre executives.
Additionally, the reward framework should seek to enhance executives' interests by:
●
rewarding capability and experience;
●
reflecting competitive reward for contribution to growth in shareholder wealth; and
●
providing a clear structure for earning rewards.
Kyckr Limited
Directors' report
30 June 2021
15
In accordance with best practice corporate governance, the structure of non-executive director and executive director
remuneration is separate.
Non-executive directors' remuneration
Fees and payments to non-executive directors reflect the demands and responsibilities of their role. Non-executive directors'
fees and payments are reviewed annually by the Nomination and Remuneration Committee. The Nomination and
Remuneration Committee may, from time to time, receive advice from independent remuneration consultants to ensure non-
executive directors' fees and payments are appropriate and in line with the market. The chairman's fees are determined
independently to the fees of other non-executive directors based on comparative roles in the external market. The chairman
is not present at any discussions relating to the determination of his own remuneration. Non-executive directors are entitled
to receive share options and performance rights.
ASX listing rules require the aggregate non-executive directors' remuneration be determined periodically by a general
meeting. As set out in the IPO Prospectus, total aggregate remuneration available to non-executive directors was set at
$500,000 per annum. Non-executive director fees (directors' fees and committee fees, inclusive of superannuation) proposed
for the year ending 30 June 2022 are summarised as follows:
Name
Fees
Rajarshi Ray
$65,000
Karina Kwan
$65,000
George Venardos
$65,000
Benny Higgins
₤65,000
Jacqueline Kilgour
$65,000
Directors have resolved that in the coming year, directors fees will be reduced to a nominal $1 per director for the six-month
period to 31 December 2021. The Directors believed that while significant progress has been made in improving the
performance of the company, share performance has lagged and accordingly have forgone compensation until the end of
the calendar year.
Executive remuneration
The consolidated entity aims to reward executives based on their position and responsibility, with a level and mix of
remuneration which has both fixed and variable components.
The executive remuneration and reward framework has four components:
●
base pay and non-monetary benefits;
●
short-term performance incentives;
●
share-based payments; and
●
other remuneration such as superannuation and long service leave.
The combination of these comprises the executive's total remuneration.
Fixed remuneration, consisting of base salary, superannuation and non-monetary benefits, are reviewed annually by the
Nomination and Remuneration Committee based on individual and business unit performance, the overall performance of
the consolidated entity and comparable market remunerations.
Executives may receive their fixed remuneration in the form of cash or other fringe benefits (for example motor vehicle
benefits) where it does not create any additional costs to the consolidated entity and provides additional value to the
executive.
The short-term incentives ('STI') program is designed to align the targets of the business units with the performance hurdles
of executives. STI payments are granted to executives based on specific annual targets and key performance indicators
('KPI's') being achieved. KPI's include profit contribution, customer satisfaction, leadership contribution and product
management.
Kyckr Limited
Directors' report
30 June 2021
16
The long-term incentives ('LTI') include long service leave and share-based payments in the form of options and performance
rights.
On 1 September 2016, 4,000,000 unlisted options were granted to key management personnel. The exercise price of the
options of $0.30 was 50% higher than the Initial Public Offering price. The options are exercisable upon meeting certain
revenue targets within four years from the date of grant. The contractual life of each option is four years. The options expired
in September 2020.
On 1 September 2016, 20,000,000 performance rights were granted to certain directors and key management personnel.
The performance rights are exercisable at nil value. The performance rights had vesting conditions linked to turnover however
expired in September 2020.
On 30 November 2016, 3,000,000 unlisted options exercisable at $0.30 were granted to senior executives under the Long
Term Incentive Plan approved by shareholders at the Annual General Meeting held on 30 November 2016. The exercise
price of the options of $0.30 was 22.45% higher than market price of the shares on the date of grant. The vesting of these
options is conditional on continued employment until the vesting date, being two years from grant date. The contractual life
of each option is four years. The options expired in November 2020.
On 10 August 2018, 1,000,000 unlisted options were granted to Benny Higgins, a director of the company. The exercise
price of the options of $0.20 was 48% higher than the market price of the shares on the date of grant. The options vested
immediately and the contractual life of each option is four years.
On 10 August 2018, 1,000,000 unlisted options were granted to Benny Higgins, a director of the Company. The exercise
price of the options of $0.26 was 93% higher than the market price of the shares on the date of grant. The options vested on
1 March 2019 and the contractual life of each option is four years.
On 1 January 2019, 3,000,000 unlisted options were granted to Ian Henderson. The exercise price of the options of $0.1005
was 50% higher than the market price of the shares at the date of grant. The vesting of these options is conditional on
continued employment until the vesting date, being 3 years from grant date. The contractual life of each option is 4 years.
On 1 January 2019, 5,391,063 unlisted performance rights were granted to Ian Henderson in lieu of the first year’s cash
salary of £210,000. The performance rights have service-based vesting conditions only. The performance rights vested on
1 January 2020 and were all converted into ordinary shares on 13 March 2020.
On 27 November 2019, 279,950 unlisted options were granted to Jacqueline Kilgour, a director of the company. The exercise
price of the options of $0.29 was 87% higher than the market price of the shares on the date of grant. The options vest on
17 November 2020 and the contractual life of each option is four years.
On 27 November 2019, 279,950 unlisted options were granted to Karina Kwan, a director of the company. The exercise price
of the options of $0.29 was 87% higher than the market price of the shares on the date of grant. The options vest on 17
November 2020 and the contractual life of each option is four years.
On 1 January 2020, 3,000,000 unlisted options were granted to Ian Henderson, the Chief Executive Officer of the company.
The exercise price of the options of $0.165 was 43% higher than the market price of the shares on the date of grant. The
options vest on 1 January 2023 and the contractual life of each option is four years.
On 12 January 2021, 3,000,000 unlisted options were granted to Ian Henderson, Chief Executive Officer. The exercise price
of the options of $0.114 was 48% higher than the market price of the shares at the date of grant. The vesting of these options
is conditional on continued employment until the vesting date, being 3 years from grant date. The contractual life of each
option is 4 years.
The Nomination and Renumeration Committee reviewed the long-term equity-linked performance incentives specifically for
executives during the year ended 30 June 2021.
Consolidated entity performance and link to remuneration
Remuneration for certain individuals is directly linked to the performance of the consolidated entity. A portion of cash bonus
and incentive payments are dependent on defined earnings per share targets being met. The remaining portion of the cash
bonus and incentive payments are at the discretion of the Nomination and Remuneration Committee.
Kyckr Limited
Directors' report
30 June 2021
17
The Nomination and Remuneration Committee is of the opinion that the adoption of performance based compensation will
contribute to future improvements in performance and will increase shareholder wealth over the coming years.
Use of remuneration consultants
During the financial year ended 30 June 2021, the company did not engage remuneration consultants to review its existing
remuneration policies and provide recommendations on how to improve both the STI and LTI programs.
Voting and comments made at the company's 2020 Annual General Meeting ('AGM')
At the 2020 AGM, 91.5% of the votes received supported the adoption of the remuneration report for the year ended 30 June
2020. The company did not receive any specific feedback at the AGM regarding its remuneration practices.
Details of remuneration
Amounts of remuneration
Details of the remuneration of key management personnel of the consolidated entity are set out in this section.
The key management personnel of the consolidated entity consisted of the following directors of Kyckr Limited:
●
Rajarshi Ray (appointed on 1 December 2020)
●
Karina Kwan
●
George Venardos (appointed on 18 August 2021)
●
Benny Higgins (resigned on 18 August 2021)
●
John Van Der Wielen (resigned on 1 December 2020)
●
Jacqueline Kilgour (resigned on 18 August 2021)
And the following persons:
●
Ian Henderson - Chief Executive Officer
●
Dharmendra Patel - Interim Finance Director
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Share-
based
payments
Cash salary
Cash
Non-
Super-
Long
service
Equity-
and fees
bonus
monetary
annuation
leave
settled
Total
2021
$
$
$
$
$
$
$
Non-Executive Directors:
B Higgins
107,247
-
-
989
-
-
108,236
Karina Kwan
54,414
-
-
5,169
-
14,890
74,473
J Kilgour
59,903
-
-
-
-
14,890
74,793
Rajarshi Ray*
34,627
-
-
3,290
-
-
37,917
J Van Der Wielen*
19,787
-
-
1,880
-
-
21,667
Other Key Management
Personnel:
I Henderson
378,249
-
-
-
-
130,126
508,375
D Patel
181,199
-
-
-
-
-
181,199
835,426
-
-
11,328
-
159,906
1,006,660
*
represents remuneration from the date of appointment and/or up to the date of resignation
Kyckr Limited
Directors' report
30 June 2021
18
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Share-
based
payments
Cash salary
Cash
Non-
Super-
Long
service
Equity-
and fees
bonus
monetary
annuation
leave
settled
Total
2020
$
$
$
$
$
$
$
Non-Executive Directors:
B Higgins
84,258
-
-
-
-
-
84,258
J Van Der Wielen
39,574
-
-
3,760
-
-
43,334
Karina Kwan
39,574
-
-
3,760
-
24,037
67,371
J Kilgour
43,333
-
-
-
-
24,037
67,370
R Leslie*
22,178
-
-
-
-
-
22,178
Executive Directors:
B Cronin*
437,858
-
-
-
-
-
437,858
Other Key Management
Personnel:
I Henderson
197,072
-
-
-
-
255,293
452,365
D Patel*
29,538
-
-
-
-
-
29,538
K Pechmann*
179,146
-
-
14,963
-
(70,657)
123,452
1,072,531
-
-
22,483
-
232,710
1,327,724
*
represents remuneration from the date of appointment and/or up to the date of resignation
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Fixed remuneration
At risk - STI
At risk - LTI
Name
2021
2020
2021
2020
2021
2020
Non-Executive Directors:
B Higgins
100%
100%
-
-
-
-
K Kwan
80%
64%
-
-
20%
36%
J Kilgour
80%
64%
-
-
20%
36%
Rajarshi Ray
100%
-
-
-
-
-
J Van Der Wielen
100%
100%
-
-
-
-
R Leslie
-
100%
-
-
-
-
Executive Directors:
B Cronin
-
100%
-
-
-
-
Other Key Management
Personnel:
I Henderson
63%
44%
-
-
37%
56%
D Patel
100%
100%
-
-
-
-
K Pechmann
-
157%
-
-
-
(57%)
Kyckr Limited
Directors' report
30 June 2021
19
Service agreements
Remuneration and other terms of employment for key management personnel are formalised in service agreements. Details
of these agreements are as follows:
Name:
Ian Henderson
Title:
Chief Executive Officer
Agreement commenced:
1 January 2019
Term of agreement:
No fixed term
Details:
Ian receives a base salary of ₤210,000 and is eligible to participate in the long term
incentive plans of the consolidated entity. Either party can terminate the employment
contract by giving 6 months’ notice in writing.
Name:
Dharmendra Patel
Title:
Interim Finance Director
Agreement commenced:
23 April 2020
Term of agreement:
No fixed term
Details:
Dharmendra receives a base fee of £90,000, and is not eligible in the long term
incentive plans of the consolidated entity. Either party can terminate the contract by
giving 1 months’ notice in writing.
Key management personnel have no entitlement to termination payments in the event of removal for misconduct.
Share-based compensation
Issue of shares
There were no shares issued to directors and other key management personnel as part of compensation during the year
ended 30 June 2021.
Options
The terms and conditions of each grant of options over ordinary shares affecting remuneration of directors and other key
management personnel in this financial year or future reporting years are as follows:
Number of
Vesting
Fair value
options
and
per option
Name
granted
Grant date
exercisable date
Expiry date
Exercise price at grant date
B Higgins
1,000,000 10/08/2018
10/08/2018
10/08/2022
$0.200
$0.080
B Higgins
1,000,000 10/08/2018
10/08/2019
10/08/2022
$0.260
$0.070
I Henderson
3,000,000 01/01/2019
01/01/2022
01/01/2023
$0.100
$0.040
I Henderson
3,000,000 01/01/2020
01/01/2023
01/01/2024
$0.165
$0.060
I Henderson
3,000,000 12/01/2021
01/01/2024
01/01/2025
$0.114
$0.050
J Kilgour
279,950 27/11/2019
17/11/2020
27/11/2023
$0.290
$0.140
K Kwan
279,950 27/11/2019
17/11/2020
27/11/2023
$0.290
$0.140
Options granted carry no dividend or voting rights.
All options were granted over unissued fully paid ordinary shares in the company. Options vest based on the provision of
service over the vesting period whereby the executive becomes beneficially entitled to the option on vesting date. Options
are exercisable by the holder as from the vesting date. There has not been any alteration to the terms or conditions of the
grant since the grant date. There are no amounts paid or payable by the recipient in relation to the granting of such options
other than on their potential exercise.
Kyckr Limited
Directors' report
30 June 2021
20
The number of options over ordinary shares granted to and vested in directors and other key management personnel as part
of compensation during the year ended 30 June 2021 are set out below:
Number of
Number of
Number of
Number of
options
options
options
options
granted
granted
vested
vested
during the
during the
during the
during the
year
year
year
year
Name
2021
2020
2021
2020
B Higgins
-
-
-
1,000,000
I Henderson
3,000,000
3,000,000
-
-
J Kilgour
-
279,950
279,950
-
K Kwan
-
279,950
279,950
-
Performance rights
There were no performance rights over ordinary shares issued to directors and other key management personnel as part of
compensation that were outstanding as at 30 June 2021.
Additional disclosures relating to key management personnel
Shareholding
The number of shares in the company held during the financial year by each director and other members of key management
personnel of the consolidated entity, including their personally related parties, is set out below:
Balance at
Exercise of
performance
Balance at
the start of
rights
Disposals/
the end of
the year
and options
Additions
other*
the year
Ordinary shares
B Higgins
1,000,000
-
625,000
-
1,625,000
J Van Der Wielen
1,157,109
-
825,000
(1,982,109)
-
K Kwan
140,000
-
250,000
-
390,000
J Kilgour
-
-
625,000
-
625,000
R Ray
-
-
865,480
-
865,480
I Henderson
4,644,746
-
852,503
-
5,497,249
D Patel
-
-
365,250
-
365,250
6,941,855
-
4,408,233
(1,982,109)
9,367,979
*
Disposals/other may represent no longer being designated as a KMP, not necessarily a disposal of holding.
Option holding
The number of options over ordinary shares in the company held during the financial year by each director and other
members of key management personnel of the consolidated entity, including their personally related parties, is set out below:
Balance at
Expired/
Balance at
the start of
forfeited/
the end of
the year
Granted
Exercised
other*
the year
Options over ordinary shares
B Higgins
2,000,000
-
-
-
2,000,000
J Van Der Wielen
2,000,000
-
-
(2,000,000)
-
K Kwan
279,950
-
-
-
279,950
J Kilgour
279,950
-
-
-
279,950
I Henderson
6,000,000
3,000,000
-
-
9,000,000
10,559,900
3,000,000
-
(2,000,000)
11,559,900
*
Expire/forfeited/other may represent no longer being designated as a KMP, it does not necessarily represent options
that have expired or have been forfeited.
Kyckr Limited
Directors' report
30 June 2021
21
This concludes the remuneration report, which has been audited.
Shares under option
Unissued ordinary shares of Kyckr Limited under option at the date of this report are as follows:
Exercise
Number
Grant date
Expiry date
price
under option
02/01/2018
02/01/2022
$0.300
2,000,000
10/08/2018
10/08/2022
$0.200
1,000,000
10/08/2018
10/08/2022
$0.260
1,000,000
01/01/2019
01/01/2023
$0.100
3,000,000
01/01/2020
01/01/2024
$0.165
3,000,000
27/11/2019
27/11/2023
$0.290
559,900
12/01/2021
01/01/2025
$0.114
3,000,000
13,559,900
No person entitled to exercise the options had or has any right by virtue of the option to participate in any share issue of the
company or of any other body corporate.
Shares under performance rights
There were no unissued ordinary shares of Kyckr Limited under performance rights outstanding at the date of this report.
Shares issued on the exercise of options
There were no ordinary shares of Kyckr Limited issued on the exercise of options during the year ended 30 June 2021 and
up to the date of this report.
Shares issued on the exercise of performance rights
There were no ordinary shares of Kyckr Limited issued on the exercise of performance rights during the year ended 30 June
2021 and up to the date of this report.
Indemnity and insurance of officers
The company has indemnified the directors and executives of the company for costs incurred, in their capacity as a director
or executive, for which they may be held personally liable, except where there is a lack of good faith.
During the financial year, the company paid a premium in respect of a contract to insure the directors and executives of the
company against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits
disclosure of the nature of the liability and the amount of the premium.
Indemnity and insurance of auditor
The company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the
company or any related entity against a liability incurred by the auditor.
During the financial year, the company has not paid a premium in respect of a contract to insure the auditor of the company
or any related entity.
Proceedings on behalf of the company
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf
of the company, or to intervene in any proceedings to which the company is a party for the purpose of taking responsibility
on behalf of the company for all or part of those proceedings.
Kyckr Limited
Directors' report
30 June 2021
22
Non-audit services
There were no non-audit services provided during the financial year by the auditor.
Officers of the company who are former partners of Nexia Sydney Audit
There are no officers of the company who are former partners of Nexia Sydney Audit.
Auditor's independence declaration
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out
immediately after this directors' report.
This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations Act 2001.
On behalf of the directors
___________________________
___________________________
Rajarshi Ray
Karina Kwan
Chairman
Director
22 September 2021
Sydney
23
To the Board of Directors of Kyckr Limited
Auditor’s Independence Declaration under section 307C of the Corporations Act 2001
As lead audit director for the audit of the financial statements of Kyckr Limited for the financial year ended
30 June 2021, I declare that to the best of my knowledge and belief, there have been no contraventions of:
(a)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(b)
any applicable code of professional conduct in relation to the audit.
Yours sincerely
Nexia Sydney Audit Pty Ltd
Mark Boyle
Director
Date: 22 September 2021
Kyckr Limited
Statement of profit or loss and other comprehensive income
For the year ended 30 June 2021
Consolidated
Note
2021
2020
$
$
The above statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes
24
Revenue
5
2,718,169
2,399,295
Other income
6
54,690
314,980
Interest revenue calculated using the effective interest method
32,416
19,962
Expenses
Direct costs and consumables used
(1,177,009)
(1,044,615)
Software maintenance expenses
(1,708,726)
(1,182,526)
Employee benefits expense
7
(3,035,013)
(3,195,523)
Share-based payments expense
7
(159,960)
24,483
Depreciation and amortisation expense
7
(253,616)
(400,847)
Consultancy and professional fees
(989,052)
(576,377)
Occupancy expenses
(102,538)
(126,339)
Travel expenses
(3,401)
(66,296)
Net foreign exchange loss
-
(41,981)
Listing related expenses
(134,628)
(368,374)
Other expenses
(783,099)
(652,495)
Finance costs
7
(1,367)
(11,174)
Loss before income tax expense
(5,543,134)
(4,907,827)
Income tax expense
8
-
-
Loss after income tax expense for the year attributable to the owners of Kyckr
Limited
(5,543,134)
(4,907,827)
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Foreign currency translation
(88,258)
4,563
Other comprehensive income for the year, net of tax
(88,258)
4,563
Total comprehensive income for the year attributable to the owners of Kyckr
Limited
(5,631,392)
(4,903,264)
Cents
Cents
Basic earnings per share
30
(1.62)
(2.21)
Diluted earnings per share
30
(1.62)
(2.21)
Kyckr Limited
Statement of financial position
As at 30 June 2021
Consolidated
Note
2021
2020
$
$
The above statement of financial position should be read in conjunction with the accompanying notes
25
Assets
Current assets
Cash and cash equivalents
9
5,340,332
6,658,129
Trade and other receivables
10
686,555
604,714
Other
11
207,025
235,571
Total current assets
6,233,912
7,498,414
Non-current assets
Property, plant and equipment
12
15,655
21,372
Intangibles
13
9,126,235
9,389,884
Total non-current assets
9,141,890
9,411,256
Total assets
15,375,802
16,909,670
Liabilities
Current liabilities
Trade and other payables
14
1,556,238
1,399,918
Contract liabilities
15
751,546
52,910
Borrowings
16
-
57,265
Total current liabilities
2,307,784
1,510,093
Total liabilities
2,307,784
1,510,093
Net assets
13,068,018
15,399,577
Equity
Issued capital
17
34,842,118
31,702,245
Reserves
18
964,490
2,457,422
Accumulated losses
(22,738,590)
(18,760,090)
Total equity
13,068,018
15,399,577
Kyckr Limited
Statement of changes in equity
For the year ended 30 June 2021
The above statement of changes in equity should be read in conjunction with the accompanying notes
26
Issued
Accumulated
Total equity
capital
Reserves
losses
Consolidated
$
$
$
$
Balance at 1 July 2019
21,798,633
2,477,342
(13,852,263)
10,423,712
Loss after income tax expense for the year
-
-
(4,907,827)
(4,907,827)
Other comprehensive income for the year, net of tax
-
4,563
-
4,563
Total comprehensive income for the year
-
4,563
(4,907,827)
(4,903,264)
Transactions with owners in their capacity as owners:
Contributions of equity, net of transaction costs (note 17)
9,903,612
-
-
9,903,612
Share-based payments (note 31)
-
(24,483)
-
(24,483)
Balance at 30 June 2020
31,702,245
2,457,422
(18,760,090)
15,399,577
Issued
Accumulated
Total equity
capital
Reserves
losses
Consolidated
$
$
$
$
Balance at 1 July 2020
31,702,245
2,457,422
(18,760,090)
15,399,577
Loss after income tax expense for the year
-
-
(5,543,134)
(5,543,134)
Other comprehensive income for the year, net of tax
-
(88,258)
-
(88,258)
Total comprehensive income for the year
-
(88,258)
(5,543,134)
(5,631,392)
Transactions with owners in their capacity as owners:
Contributions of equity, net of transaction costs (note 17)
3,139,873
-
-
3,139,873
Share-based payments (note 31)
-
159,960
-
159,960
Transfer from share-based payments reserve to accumulated
losses
-
(1,564,634)
1,564,634
-
Balance at 30 June 2021
34,842,118
964,490
(22,738,590)
13,068,018
Kyckr Limited
Statement of cash flows
For the year ended 30 June 2021
Consolidated
Note
2021
2020
$
$
The above statement of cash flows should be read in conjunction with the accompanying notes
27
Cash flows from operating activities
Receipts from customers (inclusive of GST)
3,615,133
2,347,706
Payments to suppliers and employees (inclusive of GST)
(8,036,737)
(7,023,820)
(4,421,604)
(4,676,114)
Government grants received
6
46,338
46,338
Interest received
32,416
19,962
Interest and other finance costs paid
(1,367)
(11,174)
Net cash used in operating activities
28
(4,344,217)
(4,620,988)
Cash flows from investing activities
Payments for property, plant and equipment
12
(13,735)
(3,605)
Payments for security deposits
-
(159)
Proceeds from release of security deposits
547
-
Net cash used in investing activities
(13,188)
(3,764)
Cash flows from financing activities
Proceeds from issue of shares
17
3,305,878
10,596,732
Share issue transaction costs
17
(166,005)
(693,120)
Repayment of lease liabilities
-
(72,308)
Proceeds from borrowings
-
112,317
Repayment of borrowings
(57,265)
(109,400)
Net cash from financing activities
3,082,608
9,834,221
Net increase/(decrease) in cash and cash equivalents
(1,274,797)
5,209,469
Cash and cash equivalents at the beginning of the financial year
6,658,129
1,448,660
Effects of exchange rate changes on cash and cash equivalents
(43,000)
-
Cash and cash equivalents at the end of the financial year
9
5,340,332
6,658,129
Kyckr Limited
Notes to the financial statements
30 June 2021
28
Note 1. General information
The financial statements cover Kyckr Limited as a consolidated entity consisting of Kyckr Limited and the entities it controlled
at the end of, or during, the year. The financial statements are presented in Australian dollars, which is Kyckr Limited's
functional and presentation currency.
Kyckr Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office and
principal place of business are:
Registered office
Principal place of business
Level 12, 680 George Street
ArcLabs Research Centre,
Sydney
W.I T. Campus, Carriganore,
NSW 2000
Waterford, Ireland,
X91 P20H
A description of the nature of the consolidated entity's operations and its principal activities are included in the Directors'
Report, which is not part of the financial statements.
The financial statements were authorised for issue, in accordance with a resolution of directors, on 22 September 2021. The
directors have the power to amend and reissue the financial statements.
Note 2. Significant accounting policies
The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies
have been consistently applied to all the years presented, unless otherwise stated.
New or amended Accounting Standards and Interpretations adopted
The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the
Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
The following Accounting Standards and Interpretations are most relevant to the consolidated entity:
Conceptual Framework for Financial Reporting (Conceptual Framework)
The consolidated entity has adopted the revised Conceptual Framework from 1 July 2020. The Conceptual Framework
contains new definition and recognition criteria as well as new guidance on measurement that affects several Accounting
Standards, but it has not had a material impact on the consolidated entity's financial statements.
Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as appropriate
for for-profit oriented entities. These financial statements also comply with International Financial Reporting Standards as
issued by the International Accounting Standards Board ('IASB').
Historical cost convention
The financial statements have been prepared under the historical cost convention, except for, where applicable, the
revaluation of financial assets and liabilities at fair value through profit or loss.
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the consolidated entity's accounting policies. The areas
involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the
financial statements, are disclosed in note 3.
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity only.
Supplementary information about the parent entity is disclosed in note 26.
Kyckr Limited
Notes to the financial statements
30 June 2021
Note 2. Significant accounting policies (continued)
29
Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Kyckr Limited ('company' or
'parent entity') as at 30 June 2021 and the results of all subsidiaries for the year then ended. Kyckr Limited and its subsidiaries
together are referred to in these financial statements as the 'consolidated entity'.
Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity controls an entity
when the consolidated entity 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 to direct the activities of the entity. Subsidiaries are fully consolidated from
the date on which control is transferred to the consolidated entity. They are de-consolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between entities in the consolidated entity are
eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset
transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies
adopted by the consolidated entity.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest,
without the loss of control, is accounted for as an equity transaction, where the difference between the consideration
transferred and the book value of the share of the non-controlling interest acquired is recognised directly in equity attributable
to the parent.
Where the consolidated entity loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and
non-controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. The
consolidated entity recognises the fair value of the consideration received and the fair value of any investment retained
together with any gain or loss in profit or loss.
Operating segments
Operating segments are presented using the 'management approach', where the information presented is on the same basis
as the internal reports provided to the Chief Operating Decision Makers ('CODM'). The CODM is responsible for the allocation
of resources to operating segments and assessing their performance.
Foreign currency translation
The financial statements are presented in Australian dollars, which is Kyckr Limited's functional and presentation currency.
Foreign currency transactions
Foreign currency transactions are translated into the entity's functional currency using the exchange rates prevailing at the
dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from
the translation at financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are
recognised in profit or loss.
Foreign operations
The assets and liabilities of foreign operations are translated into Australian dollars using the exchange rates at the reporting
date. The revenues and expenses of foreign operations are translated into Australian dollars using the average exchange
rates, which approximate the rates at the dates of the transactions, for the period. All resulting foreign exchange differences
are recognised in other comprehensive income through the foreign currency reserve in equity.
The foreign currency reserve is recognised in profit or loss when the foreign operation or net investment is disposed of.
Revenue recognition
The consolidated entity recognises revenue as follows:
Revenue from contracts with customers
Revenue is recognised at an amount that reflects the consideration to which the consolidated entity is expected to be entitled
in exchange for transferring goods or services to a customer. For each contract with a customer, the consolidated entity:
identifies the contract with a customer; identifies the performance obligations in the contract; determines the transaction price
which takes into account estimates of variable consideration and the time value of money; allocates the transaction price to
the separate performance obligations on the basis of the relative stand-alone selling price of each distinct good or service to
be delivered; and recognises revenue when or as each performance obligation is satisfied in a manner that depicts the
transfer to the customer of the goods or services promised.
Kyckr Limited
Notes to the financial statements
30 June 2021
Note 2. Significant accounting policies (continued)
30
Variable consideration within the transaction price, if any, reflects concessions provided to the customer such as discounts,
rebates and refunds, any potential bonuses receivable from the customer and any other contingent events. Such estimates
are determined using either the 'expected value' or 'most likely amount' method. The measurement of variable consideration
is subject to a constraining principle whereby revenue will only be recognised to the extent that it is highly probable that a
significant reversal in the amount of cumulative revenue recognised will not occur. The measurement constraint continues
until the uncertainty associated with the variable consideration is subsequently resolved. Amounts received that are subject
to the constraining principle are initially recognised as deferred revenue in the form of a separate refund liability.
Rendering of services
Online revenue is recognised at a point in time when an online document search and purchase service is provided to the
customer. Enterprise revenue is recognised at a point in time when services are provided including automation and perpetual
validation of customer ‘Know your client’ data.
Annual recurring revenue relates to data sourcing, enrichment and automation services, and software products provided
continually over the contract period. Unbilled revenue at balance date is recognised in the Statement of Financial Position
as accrued income and included within trade and other receivables. Unearned revenue at balance date is recognised in the
Statement of Financial Position as income in advance and included within other current liabilities.
Interest
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the
amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate,
which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the
net carrying amount of the financial asset.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
Government grants
Grants from the government are recognised at their fair value when there is reasonable assurance that the grant will be
received and that the consolidated entity will comply with all attached conditions.
Income tax
The income tax expense or benefit for the period is the tax payable on that period's taxable income based on the applicable
income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to temporary
differences, unused tax losses and the adjustment recognised for prior periods, where applicable.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied when the
assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted, except for:
●
when the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a
transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting nor
taxable profits; or
●
when the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and the
timing of the reversal can be controlled and it is probable that the temporary difference will not reverse in the foreseeable
future.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that
future taxable amounts will be available to utilise those temporary differences and losses.
The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting date. Deferred tax
assets recognised are reduced to the extent that it is no longer probable that future taxable profits will be available for the
carrying amount to be recovered. Previously unrecognised deferred tax assets are recognised to the extent that it is probable
that there are future taxable profits available to recover the asset.
Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against
current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable authority on
either the same taxable entity or different taxable entities which intend to settle simultaneously.
Kyckr Limited
Notes to the financial statements
30 June 2021
Note 2. Significant accounting policies (continued)
31
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the
consolidated entity's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within
12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used
to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the consolidated entity's normal operating cycle;
it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no
unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities
are classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
Cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly
liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and
which are subject to an insignificant risk of changes in value.
Trade and other receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective
interest method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within 30
days.
The consolidated entity has applied the simplified approach to measuring expected credit losses, which uses a lifetime
expected loss allowance. To measure the expected credit losses, trade receivables have been grouped based on days
overdue.
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
Impairment of financial assets
The consolidated entity recognises a loss allowance for expected credit losses on financial assets which are either measured
at amortised cost or fair value through other comprehensive income. The measurement of the loss allowance depends upon
the consolidated entity's assessment at the end of each reporting period as to whether the financial instrument's credit risk
has increased significantly since initial recognition, based on reasonable and supportable information that is available, without
undue cost or effort to obtain.
Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month expected credit
loss allowance is estimated. This represents a portion of the asset's lifetime expected credit losses that is attributable to a
default event that is possible within the next 12 months. Where a financial asset has become credit impaired or where it is
determined that credit risk has increased significantly, the loss allowance is based on the asset's lifetime expected credit
losses. The amount of expected credit loss recognised is measured on the basis of the probability weighted present value of
anticipated cash shortfalls over the life of the instrument discounted at the original effective interest rate.
Property, plant and equipment
Property, plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost
includes expenditure that is directly attributable to the acquisition of the items.
Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and equipment
(excluding land) over their expected useful lives as follows:
Computer equipment 2-5 years
The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date.
An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to the
consolidated entity. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss.
Kyckr Limited
Notes to the financial statements
30 June 2021
Note 2. Significant accounting policies (continued)
32
An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater
than its estimated recoverable amount.
Intangible assets
Intangible assets acquired as part of a business combination, other than goodwill, are initially measured at their fair value at
the date of the acquisition. Intangible assets acquired separately are initially recognised at cost. Indefinite life intangible
assets are not amortised and are subsequently measured at cost less any impairment. Finite life intangible assets are
subsequently measured at cost less amortisation and any impairment. The gains or losses recognised in profit or loss arising
from the derecognition of intangible assets are measured as the difference between net disposal proceeds and the carrying
amount of the intangible asset. The method and useful lives of finite life intangible assets are reviewed annually. Changes in
the expected pattern of consumption or useful life are accounted for prospectively by changing the amortisation method or
period.
Goodwill
Goodwill arises on the acquisition of a business and is carried at cost less accumulated impairment losses. Impairment losses
on goodwill are taken to profit or loss and are not subsequently reversed.
Computer software and development
Significant costs associated with computer software and development are deferred and amortised on a straight-line basis
over the period of their expected benefit and once the asset has been brought into use, being their finite life of 5 years.
Impairment of non-financial assets
Goodwill and other intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually
for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other non-
financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount
may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its
recoverable amount.
Recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. The value-in-use is the
present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or
cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to
form a cash-generating unit.
Trade and other payables
These amounts represent liabilities for goods and services provided to the consolidated entity prior to the end of the financial
year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. The
amounts are unsecured and are usually paid within 30 days of recognition.
Contract liabilities
Contract liabilities represent the consolidated entity's obligation to transfer goods or services to a customer and are
recognised when a customer pays consideration, or when the consolidated entity recognises a receivable to reflect its
unconditional right to consideration (whichever is earlier) before the consolidated entity has transferred the goods or services
to the customer.
Borrowings
Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction costs. They
are subsequently measured at amortised cost using the effective interest method.
Where there is an unconditional right to defer settlement of the liability for at least 12 months after the reporting date, the
loans or borrowings are classified as non-current.
Loans and borrowings are removed from the statement of financial position when the obligation specified in the contract is
discharged, cancelled or expired. The difference between the carrying amount and any consideration paid is recognised in
profit or loss.
Finance costs
Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs are expensed in
the period in which they are incurred.
Kyckr Limited
Notes to the financial statements
30 June 2021
Note 2. Significant accounting policies (continued)
33
Employee benefits
Share-based payments
Equity-settled and cash-settled share-based compensation benefits are provided to employees.
Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in exchange for the
rendering of services.
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently determined using
the Black-Scholes option pricing model that takes into account the exercise price, the term of the option, the impact of dilution,
the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk
free interest rate for the term of the option, together with non-vesting conditions that do not determine whether the
consolidated entity receives the services that entitle the employees to receive payment. No account is taken of any other
vesting conditions.
The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity over the vesting
period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the best estimate
of the number of awards that are likely to vest and the expired portion of the vesting period. The amount recognised in profit
or loss for the period is the cumulative amount calculated at each reporting date less amounts already recognised in previous
periods.
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been made. An
additional expense is recognised, over the remaining vesting period, for any modification that increases the total fair value
of the share-based compensation benefit as at the date of modification.
If the non-vesting condition is within the control of the consolidated entity or employee, the failure to satisfy the condition is
treated as a cancellation. If the condition is not within the control of the consolidated entity or employee and is not satisfied
during the vesting period, any remaining expense for the award is recognised over the remaining vesting period, unless the
award is forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining expense
is recognised immediately. If a new replacement award is substituted for the cancelled award, the cancelled and new award
is treated as if they were a modification.
Issued capital
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax,
from the proceeds.
Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of Kyckr Limited, excluding any costs
of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the
financial year, adjusted for bonus elements in ordinary shares issued during the financial year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the
after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted
average number of additional ordinary shares that would have been outstanding assuming conversion of all dilutive potential
ordinary shares.
Goods and Services Tax ('GST') and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not
recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part of
the expense.
Kyckr Limited
Notes to the financial statements
30 June 2021
Note 2. Significant accounting policies (continued)
34
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement of
financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities
which are recoverable from, or payable to the tax authority, are presented as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority.
New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory,
have not been early adopted by the consolidated entity for the annual reporting period ended 30 June 2021. The consolidated
entity has not yet assessed the impact of these new or amended Accounting Standards and Interpretations.
Note 3. Critical accounting judgements, estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates and assumptions that
affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in
relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and
assumptions on historical experience and on other various factors, including expectations of future events, management
believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal
the related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are
discussed below.
Coronavirus (COVID-19) pandemic
Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has had, or may have,
on the consolidated entity based on known information. This consideration extends to the nature of the products and services
offered, customers, supply chain, staffing and geographic regions in which the consolidated entity operates. Other than as
addressed in specific notes, there does not currently appear to be either any significant impact upon the financial statements
or any significant uncertainties with respect to events or conditions which may impact the consolidated entity unfavourably
as at the reporting date or subsequently as a result of the Coronavirus (COVID-19) pandemic.
Share-based payment transactions
The consolidated entity measures the cost of equity-settled transactions with employees by reference to the fair value of the
equity instruments at the date at which they are granted. The fair value is determined by using the Black-Scholes model
which takes into account the terms and conditions upon which the instruments were granted. The accounting estimates and
assumptions relating to equity-settled share-based payments would have no impact on the carrying amounts of assets and
liabilities within the next annual reporting period but may impact profit or loss and equity.
Allowance for expected credit losses
The allowance for expected credit losses assessment requires a degree of estimation and judgement. It is based on the
lifetime expected credit loss, grouped based on days overdue, and makes assumptions to allocate an overall expected credit
loss rate for each group. These assumptions include recent sales experience, historical collection rates, the impact of the
Coronavirus (COVID-19) pandemic and forward-looking information that is available. The allowance for expected credit
losses, as disclosed in note 10, is calculated based on the information available at the time of preparation. The actual credit
losses in future years may be higher or lower.
Estimation of useful lives of assets
The consolidated entity determines the estimated useful lives and related depreciation and amortisation charges for its
property, plant and equipment and finite life intangible assets. The useful lives could change significantly as a result of
technical innovations or some other event. The depreciation and amortisation charge will increase where the useful lives are
less than previously estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold will
be written off or written down.
Kyckr Limited
Notes to the financial statements
30 June 2021
Note 3. Critical accounting judgements, estimates and assumptions (continued)
35
Goodwill and other indefinite life intangible assets
The consolidated entity tests annually, or more frequently if events or changes in circumstances indicate impairment, whether
goodwill and other indefinite life intangible assets have suffered any impairment, in accordance with the accounting policy
stated in note 2. The recoverable amounts of cash-generating units have been determined based on value-in-use
calculations. These calculations require the use of assumptions, including estimated discount rates based on the current
cost of capital and growth rates of the estimated future cash flows.
Impairment of non-financial assets other than goodwill and other indefinite life intangible assets
The consolidated entity assesses impairment of non-financial assets other than goodwill and other indefinite life intangible
assets at each reporting date by evaluating conditions specific to the consolidated entity and to the particular asset that may
lead to impairment. If an impairment trigger exists, the recoverable amount of the asset is determined. This involves fair value
less costs of disposal or value-in-use calculations, which incorporate a number of key estimates and assumptions.
Income tax
The consolidated entity is subject to income taxes in the jurisdictions in which it operates. Significant judgement is required
in determining the provision for income tax. There are many transactions and calculations undertaken during the ordinary
course of business for which the ultimate tax determination is uncertain. The consolidated entity recognises liabilities for
anticipated tax audit issues based on the consolidated entity's current understanding of the tax law. Where the final tax
outcome of these matters is different from the carrying amounts, such differences will impact the current and deferred tax
provisions in the period in which such determination is made.
Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary differences only if the consolidated entity considers it is probable
that future taxable amounts will be available to utilise those temporary differences and losses.
Employee benefits provision
As discussed in note 2, the liability for employee benefits expected to be settled more than 12 months from the reporting
date are recognised and measured at the present value of the estimated future cash flows to be made in respect of all
employees at the reporting date. In determining the present value of the liability, estimates of attrition rates and pay increases
through promotion and inflation have been taken into account.
Note 4. Operating segments
The Group operates in one operating segment being the provision of corporate registry data to vendors who as part of their
customer onboarding and monitoring processes have an ongoing requirement to validate customer data to primary data
sources as required by Regulators. The operating segment identified is based on the internal reports that are reviewed and
used by the Chief Operating Decision Maker (‘CODM’) who is the Chief Executive Officer.
The CODM reviews earnings before interest, tax, depreciation and amortisation ('EBITDA'), adjusted for impairment. EBITDA
is a financial measure which is not prescribed by Australian Accounting Standards (‘AAS’) and represents the profit under
AAS adjusted for non-specific non-cash and significant items. The accounting policies adopted for internal reporting to the
CODM are consistent with those adopted in the financial statements.
The information reported to the CODM is on at least a monthly basis.
Major customers
During the year ended 30 June 2021 approximately 50% (2020: 36%) of the consolidated entity's external revenue was
derived from sales to 3 customers (2020: 2 customers).
Kyckr Limited
Notes to the financial statements
30 June 2021
Note 4. Operating segments (continued)
36
Geographical information
Sales to external customers
Geographical non-current
assets
2021
2020
2021
2020
$
$
$
$
Australia
-
-
8,448,416
8,448,416
Ireland
2,718,169
2,399,295
693,474
1,022,503
2,718,169
2,399,295
9,141,890
9,470,919
A reconciliation of the loss after income tax expense to EBITDA is as follows:
Consolidated
2021
2020
$
$
Loss after tax
(5,543,134)
(4,907,827)
add: depreciation and amortisation
253,616
400,847
Less: interest revenue
(32,416)
(19,962)
add: finance costs
1,367
11,174
EBITDA
(5,320,567)
(4,515,768)
Note 5. Revenue
Consolidated
2021
2020
$
$
Sales of services
2,718,169
2,399,295
Disaggregation of revenue
The disaggregation of revenue from contracts with customers is as follows:
Consolidated
2021
2020
$
$
Major product lines
Online revenue
188,855
1,594,171
Enterprise revenue
2,529,314
805,124
2,718,169
2,399,295
Refer to note 4 'Operating segments' for analysis of revenue by geographical region.
During the financial year ended 30 June 2021, Kyckr moved most of its customers to annual contracts which had payments
in advance rather than the actual usage basis that it has used historically. For the year ended 30 June 2021, 34% of revenue
relates to the advance contract basis. In 30 June 2020, all revenue was recognised based on services provided at a point in
time.
Kyckr Limited
Notes to the financial statements
30 June 2021
37
Note 6. Other income
Consolidated
2021
2020
$
$
Net foreign exchange gain
8,352
-
Net fair value gain on financial liability (refer to note 18)
-
214,500
Government grants (COVID-19)
46,338
46,338
Gain on cancellation of lease
-
54,142
Other income
54,690
314,980
Government grants (COVID-19) represents grants received from the Australian Government comprising of cash boost
support payments in response to the Coronavirus (‘COVID-19’) pandemic. These non-tax amounts have been recognised
as government grants and recognised as income once there is reasonable assurance that the consolidated entity will comply
with any conditions attached.
Note 7. Expenses
Consolidated
2021
2020
$
$
Loss before income tax includes the following specific expenses:
Depreciation
Right-of-use assets
-
120,151
Computer equipment (refer to note 12)
18,940
29,908
Total depreciation
18,940
150,059
Amortisation
Computer software and development (refer to note 13)
234,676
250,788
Total depreciation and amortisation
253,616
400,847
Finance costs
Interest and finance charges paid/payable on borrowings
1,367
4,875
Interest and finance charges paid/payable on lease liabilities
-
6,299
Finance costs expensed
1,367
11,174
Net foreign exchange loss
Net foreign exchange loss
-
41,981
Leases
Short-term lease payments
102,538
52,743
Share-based payments expense
Share-based payments expense (refer to note 31)
159,960
(24,483)
Employee benefits expense
Employee benefits expense excluding superannuation
3,004,860
3,171,025
Defined contribution superannuation expense
30,153
24,498
Total employee benefits expense
3,035,013
3,195,523
Kyckr Limited
Notes to the financial statements
30 June 2021
38
Note 8. Income tax expense
Consolidated
2021
2020
$
$
Numerical reconciliation of income tax expense and tax at the statutory rate
Loss before income tax expense
(5,543,134)
(4,907,827)
Tax at the statutory tax rate of 26% (2020: 27.5%)
(1,441,215)
(1,349,652)
Tax effect amounts which are not deductible/(taxable) in calculating taxable income:
Non-deductible expenses
40,934
(6,605)
Non-assessable income
-
(58,988)
Capital deductions
(43,550)
(63,559)
(1,443,831)
(1,478,804)
Current year tax losses not recognised
871,177
864,587
Difference in overseas tax rates
572,654
614,217
Income tax expense
-
-
Consolidated
2021
2020
$
$
Deferred tax assets not recognised
Deferred tax assets not recognised comprises temporary differences attributable to:
Carried forward tax losses benefit
3,582,830
3,358,821
Temporary differences
62,861
65,815
Total deferred tax assets not recognised
3,645,691
3,424,636
The above potential tax benefit, which includes tax losses and temporary differences has not been recognised in the
statement of financial position as recovery of this benefit is not probable. There is no expiration date for the tax losses carried
forward. The estimated amount of cumulative tax losses at 30 June 2021 was $22,071,657 (2020: $18,717,842). Utilisation
of these tax losses is dependent on the company satisfying certain tests at the time the losses are recouped.
Note 9. Current assets - cash and cash equivalents
Consolidated
2021
2020
$
$
Cash at bank
5,340,332
6,658,129
Note 10. Current assets - trade and other receivables
Consolidated
2021
2020
$
$
Trade receivables
601,535
521,721
Other receivables
61,222
39,084
GST receivable
23,798
43,909
686,555
604,714
Kyckr Limited
Notes to the financial statements
30 June 2021
Note 10. Current assets - trade and other receivables (continued)
39
Allowance for expected credit losses
The consolidated entity has recognised a loss of $nil (2020: $nil) in profit or loss in respect of impairment of receivables for
the year ended 30 June 2021.
The ageing of the receivables and allowance for expected credit losses provided for above are as follows:
Expected credit loss rate
Carrying amount
Allowance for expected
credit losses
2021
2020
2021
2020
2021
2020
Consolidated
%
%
$
$
$
$
Not overdue
-
-
346,848
155,512
-
-
0 to 3 months overdue
-
-
251,083
300,217
-
-
3 to 6 months overdue
-
-
3,604
65,992
-
-
601,535
521,721
-
-
The consolidated entity has not increased credit risks in relation to the Coronavirus ('COVID-19') pandemic due to the core
client base is in Financial Services or related industry which is not deemed at high risk compared to other industries or
sectors.
Movements in the allowance for expected credit losses are as follows:
Consolidated
2021
2020
$
$
Opening balance
-
3,241
Receivables written off during the year as uncollectable
-
(3,241)
Closing balance
-
-
Note 11. Current assets - other
Consolidated
2021
2020
$
$
Prepayments
191,208
219,207
Security deposits
15,817
16,364
207,025
235,571
Note 12. Non-current assets - property, plant and equipment
Consolidated
2021
2020
$
$
Computer equipment - at cost
120,428
98,079
Less: Accumulated depreciation
(104,773)
(76,707)
15,655
21,372
Kyckr Limited
Notes to the financial statements
30 June 2021
Note 12. Non-current assets - property, plant and equipment (continued)
40
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Computer
equipment
Consolidated
$
Balance at 1 July 2019
49,035
Additions
3,605
Disposals
(1,970)
Exchange differences
610
Depreciation expense
(29,908)
Balance at 30 June 2020
21,372
Additions
13,735
Exchange differences
(512)
Depreciation expense
(18,940)
Balance at 30 June 2021
15,655
Note 13. Non-current assets - intangibles
Consolidated
2021
2020
$
$
Goodwill - at cost
12,250,079
12,250,079
Less: Impairment
(3,801,663)
(3,801,663)
8,448,416
8,448,416
Computer software and development - at cost
1,283,873
1,312,846
Less: Accumulated amortisation
(606,054)
(371,378)
677,819
941,468
9,126,235
9,389,884
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Computer
software and
Goodwill
development
Total
Consolidated
$
$
$
Balance at 1 July 2019
8,448,416
1,178,956
9,627,372
Exchange differences
-
13,300
13,300
Amortisation expense
-
(250,788)
(250,788)
Balance at 30 June 2020
8,448,416
941,468
9,389,884
Exchange differences
-
(28,973)
(28,973)
Amortisation expense
-
(234,676)
(234,676)
Balance at 30 June 2021
8,448,416
677,819
9,126,235
Kyckr Limited
Notes to the financial statements
30 June 2021
Note 13. Non-current assets - intangibles (continued)
41
Impairment testing
For the purpose of impairment testing, goodwill is allocated to the one cash generating unit ('CGU'), Kyckr Ireland Limited.
The Group tests whether goodwill has suffered any impairment on at least an annual basis or at each reporting period where
an indicator of impairment exists. The Group has performed an impairment test at 30 June 2021. The recoverable amount
of a CGU is determined based on value-in-use calculations which require the use of assumptions. The calculations use cash
flow projections based on financial budgets approved by the Board covering a four year period with revenue growth
assumptions projected to be between 30% and 80% during this period. Cash flows beyond the four year period are
extrapolated into perpetuity using estimated terminal growth rates showing below. The following table sets out the key
assumptions used for value-in-use calculations:
●
One to four year revenue growth rates between 30% and 80% (2020: 15%-165%)
●
Long term growth rate 5% (2020: 5%)
●
Weighted average cost of capital 16.9% (2020: 20.5%)
Impairment charge:
Based on the value-in-use calculation methodology and assumptions stated above, no impairment was recognised at 30
June 2021 (30 June 2020: $nil).
Impact of possible changes in assumptions:
If the weighted average cost of capital was to exceed 23.65% and all other assumptions remained constant, this would result
in an additional impairment loss to the CGU.
Note 14. Current liabilities - trade and other payables
Consolidated
2021
2020
$
$
Trade payables
780,995
815,993
Accrued expenses
567,441
453,682
Other payables
207,802
130,243
1,556,238
1,399,918
Refer to note 20 for further information on financial instruments.
Note 15. Current liabilities - contract liabilities
Consolidated
2021
2020
$
$
Contract liabilities
751,546
52,910
Kyckr Limited
Notes to the financial statements
30 June 2021
Note 15. Current liabilities - contract liabilities (continued)
42
Reconciliation
Reconciliation of the written down values at the beginning and end of the current and previous financial year are set out
below:
Consolidated
2021
2020
$
$
Opening balance
52,910
158,000
Payments received in advance
1,374,179
225,817
Transfer to revenue
(675,543)
(330,907)
Closing balance
751,546
52,910
Performance obligations relating to future periods
The aggregate amount of the transaction price allocated to the performance obligations that are deferred at the end of the
reporting period was $751,546 as at 30 June 2021 ($52,910 as at 30 June 2020) and is expected to be recognised as
revenue in future periods as follows:
Consolidated
2021
2020
$
$
Within 6 months
532,800
52,910
6 to 12 months
218,746
-
751,546
52,910
Note 16. Current liabilities - borrowings
Consolidated
2021
2020
$
$
Interest bearing liability - insurance premium funding
-
57,265
Refer to note 20 for further information on financial instruments.
Note 17. Equity - issued capital
Consolidated
2021
2020
2021
2020
Shares
Shares
$
$
Ordinary shares - fully paid
343,849,862
302,526,389
34,842,118
31,702,245
Kyckr Limited
Notes to the financial statements
30 June 2021
Note 17. Equity - issued capital (continued)
43
Movements in ordinary share capital
Details
Date
Shares
Issue price
$
Balance
1 July 2019
150,964,890
21,798,633
Shares issued
7 August 2019
32,350,159
$0.066
2,135,110
Shares issued
19 September 2019
46,000,000
$0.066
3,036,000
Shares issued on the exercise of performance rights 13 March 2020
5,391,063
$0.000
-
Shares issued
1 June 2020
58,676,527
$0.080
4,694,122
Shares issued
26 June 2020
9,143,750
$0.080
731,500
Less: share issue costs (net of taxation)
-
$0.000
(693,120)
Balance
30 June 2020
302,526,389
31,702,245
Issue of shares
9 July 2020
41,323,473
$0.080
3,305,878
less share issue costs (net of taxation)
-
$0.000
(166,005)
Balance
30 June 2021
343,849,862
34,842,118
Ordinary shares
Ordinary shares entitle the holder to participate in any dividends declared and any proceeds attributable to shareholders
should the company be wound up in proportions that consider both the number of shares held and the extent to which those
shares are paid up. The fully paid ordinary shares have no par value and the company does not have a limited amount of
authorised capital.
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each
share shall have one vote.
Capital risk management
The consolidated entity's objectives when managing capital is to safeguard its ability to continue as a going concern, so that
it can provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital structure to
reduce the cost of capital.
Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt is calculated
as total borrowings less cash and cash equivalents.
In order to maintain or adjust the capital structure, the consolidated entity may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
The consolidated entity would look to raise capital when an opportunity to invest in a business or company was seen as
value adding relative to the current company's share price at the time of the investment. The consolidated entity is not actively
pursuing additional investments in the short term as it continues to integrate and grow its existing businesses in order to
maximise synergies.
The consolidated entity is subject to certain financing arrangements covenants and meeting these is given priority in all
capital risk management decisions. There have been no events of default on the financing arrangements during the financial
year.
The capital risk management policy remains unchanged from the 30 June 2020 Annual Report.
Kyckr Limited
Notes to the financial statements
30 June 2021
44
Note 18. Equity - reserves
Consolidated
2021
2020
$
$
Foreign currency reserve
(76,161)
12,097
Share-based payments reserve
1,040,651
2,445,325
964,490
2,457,422
Foreign currency reserve
The reserve is used to recognise exchange differences arising from the translation of the financial statements of foreign
operations to Australian dollars.
Share-based payments reserve
The reserve is used to recognise the value of equity benefits provided to employees and directors as part of their
remuneration, and other parties as part of their compensation for services.
Movements in reserves
Movements in each class of reserve during the current and previous financial year are set out below:
Foreign
Share-based
currency
payments
Total
Consolidated
$
$
$
Balance at 1 July 2019
7,534
2,469,808
2,477,342
Foreign currency translation
4,563
-
4,563
Share-based payments
-
(24,483)
(24,483)
Balance at 30 June 2020
12,097
2,445,325
2,457,422
Foreign currency translation
(88,258)
-
(88,258)
Share-based payments
-
159,960
159,960
Transfer to accumulated losses
-
(1,564,634)
(1,564,634)
Balance at 30 June 2021
(76,161)
1,040,651
964,490
Note 19. Equity - dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Note 20. Financial instruments
Financial risk management objectives
The consolidated entity's activities expose it to a variety of financial risks: market risk (including foreign currency risk, price
risk and interest rate risk), credit risk and liquidity risk. The consolidated entity's overall risk management program focuses
on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of
the consolidated entity. The consolidated entity may use derivative financial instruments such as forward foreign exchange
contracts to hedge certain risk exposures, however as at 30 June 2021 and 30 June 2020 there were no derivative financial
instruments in place. The consolidated entity uses different methods to measure different types of risk to which it is exposed.
These methods include sensitivity analysis in the case of interest rate, foreign exchange and other price risks and ageing
analysis for credit risk.
Risk management is carried out by senior finance executives ('Finance') under policies approved by the Board. These policies
include identification and analysis of the risk exposure of the consolidated entity and appropriate procedures, controls and
risk limits. Finance identifies and evaluates financial risks within the consolidated entity's operating units. Finance reports to
the Board on a monthly basis.
Kyckr Limited
Notes to the financial statements
30 June 2021
Note 20. Financial instruments (continued)
45
Market risk
Foreign currency risk
The consolidated entity undertakes certain transactions denominated in foreign currency and is exposed to foreign currency
risk through foreign exchange rate fluctuations.
Foreign exchange risk arises from future commercial transactions and recognised financial assets and financial liabilities
denominated in a currency that is not the entity's functional currency. The risk is measured using sensitivity analysis and
cash flow forecasting.
The consolidated entity's foreign exchange risk is managed to ensure sufficient funds are available to meet foreign
denominated financial commitments in a timely and cost-effective manner. The consolidated entity will continually monitor
this risk and consider entering into forward foreign exchange, foreign currency swap and foreign currency option contracts if
appropriate.
Creditors and debtors as at 30 June 2021 were reviewed to assess currency risk at year end. The value of transactions
denominated in a currency other than the functional currency of the respective subsidiary was insignificant and therefore the
risk was determined as not being significant.
At 30 June 2021, the carrying value of foreign currency denominated cash and cash equivalents are as follows:
Assets
Liabilities
2021
2020
2021
2020
Consolidated
$
$
$
$
US dollars
3,016
16,927
-
-
Euros
798,820
51,793
-
-
Pound Sterling
172,022
851,097
-
-
Swiss Franc
13
-
-
-
973,871
919,817
-
-
The consolidated entity had cash denominated in foreign currencies of $973,871 as at 30 June 2021 (30 June 2020:
$919,817). Based on this exposure, had the Australian dollar weakened by 10%/strengthened by 10% (30 June 2020:
weakened by 10%/strengthened by 10%) against these foreign currencies with all other variables held constant, the
consolidated entity's profit after tax for the year would have been $97,381 higher/$97,381 lower (30 June 2020: $91,982
higher/$91,982 lower). The percentage change is the expected overall volatility of the significant currencies, based on
management's assessment of reasonable possible fluctuations.
Price risk
The consolidated entity is not exposed to any significant price risk.
Interest rate risk
The consolidated entity is not exposed to any interest rate risk.
Credit risk
The consolidated entity has adopted a lifetime expected loss allowance in estimating expected credit losses to trade
receivables through the use of a provisions matrix using fixed rates of credit loss provisioning. These provisions are
considered representative across all customers of the consolidated entity based on recent sales experience, historical
collection rates and forward-looking information that is available.
Generally, trade receivables are written off when there is no reasonable expectation of recovery. Indicators of this include
the failure of a debtor to engage in a repayment plan, no active enforcement activity and a failure to make contractual
payments for a period greater than 1 year.
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the
consolidated entity. The consolidated entity has a strict code of credit, including obtaining agency credit information,
confirming references and setting appropriate credit limits.
Kyckr Limited
Notes to the financial statements
30 June 2021
Note 20. Financial instruments (continued)
46
The consolidated entity has no significant credit risk exposure and the maximum exposure at the reporting date to recognised
financial assets is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the statement
of financial position and notes to the financial statements. The consolidated entity does not hold any collateral.
Liquidity risk
Vigilant liquidity risk management requires the consolidated entity to maintain sufficient liquid assets (mainly cash and cash
equivalents) to be able to pay debts as and when they become due and payable.
The consolidated entity manages liquidity risk by maintaining adequate cash reserves by continuously monitoring actual and
forecast cash flows and matching the maturity profiles of financial assets and liabilities.
Remaining contractual maturities
The following tables detail the consolidated entity's remaining contractual maturity for its financial instrument liabilities. The
tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which
the financial liabilities are required to be paid. The tables include both interest and principal cash flows disclosed as remaining
contractual maturities and therefore these totals may differ from their carrying amount in the statement of financial position.
Weighted
average
interest rate 1 year or less
Between 1
and 2 years
Between 2
and 5 years
Over 5 years
Remaining
contractual
maturities
Consolidated - 2021
%
$
$
$
$
$
Non-derivatives
Non-interest bearing
Trade payables
-
780,995
-
-
-
780,995
Other payables
-
42,647
-
-
-
42,647
Total non-derivatives
823,642
-
-
-
823,642
Weighted
average
interest rate 1 year or less
Between 1
and 2 years
Between 2
and 5 years
Over 5 years
Remaining
contractual
maturities
Consolidated - 2020
%
$
$
$
$
$
Non-derivatives
Non-interest bearing
Trade payables
-
815,993
-
-
-
815,993
Other payables
-
9,773
-
-
-
9,773
Interest-bearing - fixed rate
Borrowing
7.80%
57,265
-
-
-
57,265
Total non-derivatives
883,031
-
-
-
883,031
The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed
above.
Fair value of financial instruments
Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value.
Note 21. Fair value measurement
Fair value hierarchy
Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value. The carrying amounts of trade
receivables and trade payables are assumed to approximate their fair values due to their short-term nature. The fair value of
financial liabilities is estimated by discounting the remaining contractual maturities at the current market interest rate that is
available for similar financial instruments.
Kyckr Limited
Notes to the financial statements
30 June 2021
47
Note 22. Key management personnel disclosures
Compensation
The aggregate compensation made to directors and other members of key management personnel of the consolidated entity
is set out below:
Consolidated
2021
2020
$
$
Short-term employee benefits
835,426
1,072,531
Post-employment benefits
11,328
22,483
Share-based payments
159,906
232,710
1,006,660
1,327,724
Note 23. Remuneration of auditors
During the financial year the following fees were paid or payable for services provided by Nexia Sydney Audit, the auditor of
the company:
Consolidated
2021
2020
$
$
Audit services - Nexia Sydney Audit
Audit or review of the financial statements
49,395
39,700
Note 24. Contingent liabilities
The consolidated entity has no contingent liabilities at 30 June 2021 and 30 June 2020.
Note 25. Related party transactions
Parent entity
Kyckr Limited is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in note 27.
Key management personnel
Disclosures relating to key management personnel are set out in note 22 and the remuneration report included in the
directors' report.
Transactions with related parties
There were no transactions with related parties during the current and previous financial year.
Receivable from and payable to related parties
There were no trade receivables from or trade payables to related parties at the current and previous reporting date.
Loans to/from related parties
There were no loans to or from related parties at the current and previous reporting date.
Kyckr Limited
Notes to the financial statements
30 June 2021
48
Note 26. Parent entity information
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
Parent
2021
2020
$
$
Profit/(loss) after income tax
132,322 (10,345,314)
Total comprehensive income
132,322 (10,345,314)
Statement of financial position
Parent
2021
2020
$
$
Total current assets
21,126,940
17,918,848
Total assets
22,925,467
19,717,375
Total current liabilities
131,103
355,166
Total liabilities
131,103
355,166
Equity
Issued capital
34,842,118
31,702,245
Share-based payments reserve
1,040,651
2,445,325
Accumulated losses
(13,088,405)
(14,785,361)
Total equity
22,794,364
19,362,209
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
The parent entity had no guarantees in relation to the debts of its subsidiaries as at 30 June 2021 and 30 June 2020.
Contingent liabilities
The parent entity had no contingent liabilities as at 30 June 2021 and 30 June 2020.
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2021 and 30 June 2020.
Significant accounting policies
The accounting policies of the parent entity are consistent with those of the consolidated entity, as disclosed in note 2, except
for the following:
●
Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity.
●
Dividends received from subsidiaries are recognised as other income by the parent entity.
Kyckr Limited
Notes to the financial statements
30 June 2021
49
Note 27. Interests in subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance
with the accounting policy described in note 2:
Ownership interest
Principal place of business /
2021
2020
Name
Country of incorporation
%
%
Kyckr Ireland Limited
Ireland
100.00%
100.00%
Kyckr UK Limited
UK
100.00%
100.00%
Note 28. Reconciliation of loss after income tax to net cash used in operating activities
Consolidated
2021
2020
$
$
Loss after income tax expense for the year
(5,543,134)
(4,907,827)
Adjustments for:
Depreciation and amortisation
253,616
400,847
Net loss on disposal of property, plant and equipment
-
1,970
Share-based payments
159,960
(24,483)
Foreign exchange differences
(15,773)
(3,048)
Fair value gain on contingent consideration
-
(214,500)
Cancellation of lease
-
(54,142)
Change in operating assets and liabilities:
Increase in trade and other receivables
(81,841)
(186,428)
Decrease/(increase) in prepayments
27,999
(60,478)
Increase in trade and other payables
156,320
560,704
Increase/(decrease) in contract liabilities
698,636
(105,090)
Decrease in employee benefits
-
(28,513)
Net cash used in operating activities
(4,344,217)
(4,620,988)
Note 29. Changes in liabilities arising from financing activities
Interest
bearing
liability -
insurance
premium
funding
Lease
liabilities
Total
Consolidated
$
$
$
Balance at 1 July 2019
54,348
-
54,348
Net cash from/(used in) financing activities
2,917
(72,308)
(69,391)
Additions
-
174,321
174,321
Other changes
-
(102,013)
(102,013)
Balance at 30 June 2020
57,265
-
57,265
Net cash used in financing activities
(57,265)
-
(57,265)
Balance at 30 June 2021
-
-
-
Kyckr Limited
Notes to the financial statements
30 June 2021
50
Note 30. Earnings per share
Consolidated
2021
2020
$
$
Loss after income tax attributable to the owners of Kyckr Limited
(5,543,134)
(4,907,827)
Number
Number
Weighted average number of ordinary shares used in calculating basic earnings per share
342,944,142
222,544,764
Weighted average number of ordinary shares used in calculating diluted earnings per share
342,944,142
222,544,764
Cents
Cents
Basic earnings per share
(1.62)
(2.21)
Diluted earnings per share
(1.62)
(2.21)
For the purpose of calculating the diluted earnings per share, the calculation has excluded the number of options and
performance rights as the effect would be anti-dilutive.
Kyckr Limited
Notes to the financial statements
30 June 2021
51
Note 31. Share-based payments
The following options and performance rights were issued during the years ended 30 June 2021, 30 June 2020, 30 June
2019 and 30 June 2018:
●
On 1 September 2016, 4,000,000 unlisted options were granted to brokers associated with the Initial Public Offering
('IPO') of the company. The exercise price of the options of $0.20 was equal to the IPO price. The contractual life of
each option is four years. The options expired during the year ended 30 June 2021.
●
On 1 September 2016, 4,000,000 unlisted options were granted to key management personnel. The exercise price of
the options of $0.30 was 50% higher than the Initial Public Offering price. The options are exercisable upon meeting
certain revenue targets within four years from the date of grant. The contractual life of each option is four years. The
options expired during the year ended 30 June 2021.
●
On 1 September 2016, 20,000,000 performance rights were granted to certain directors and key management
personnel. The performance rights are exercisable at nil value. 50% of the performance rights automatically convert
upon the company achieving a turnover of $5 million or more as set out in the full year or half-yearly financial statements
released to the ASX; and 5% of the performance rights automatically convert upon the company achieving a turnover
of $10 million or more as set out in its yearly or half-yearly financial statements released to the ASX. The contractual
life of each performance right is four years. 4,000,000 performance rights were outstanding at 30 June 2020, all of which
expired during the year ended 30 June 2021.
●
On 30 November 2016, 2,000,000 unlisted options exercisable at $0.30 were granted to senior executives under the
Long Term Incentive Plan approved by shareholders at the Annual General Meeting held on 30 November 2016. The
exercise price of the options of $0.30 was 22.45% higher than market price of the shares on the date of grant. The
vesting of these options is conditional on continued employment until the vesting date, being two years from grant date.
The contractual life of each option is four years. The options expired during the year ended 30 June 2021.
●
On 30 November 2016, 3,000,000 unlisted options exercisable at $0.30 were granted to non-executive directors as
approved by shareholders at the Annual General Meeting held on 30 November 2016. The exercise price of the options
of $0.30 was 22.45% higher than market price of the shares on the date of grant. 2,722,000 unlisted options were
outstanding at 30 June 2020, all of which expired during the year ended 30 June 2021.
●
On 2 January 2018, 2,000,000 unlisted options exercisable at $0.30 were granted to senior executives under the Long
Term Incentive Plan approved by shareholders at the Annual General Meeting held on 30 November 2016. The exercise
price of the options of $0.30 was 42.86% higher than the market price of the shares on the date of grant. The vesting
of these options is conditional on continued employment until the vesting date, being 1 November 2019.
●
On 10 August 2018, 1,000,000 unlisted options were granted to Benny Higgins, a director of the company. The exercise
price of the options of $0.20 was 48% higher than the market price of the shares on the date of grant. The options
vested immediately and the contractual life of each option is four years.
●
On 10 August 2018, 1,000,000 unlisted options were granted to Benny Higgins, a director of the company. The exercise
price of the options of $0.26 was 93% higher than the market price of the shares on the date of grant. The options
vested on 1 March 2019 and the contractual life of each option is four years.
●
On 10 August 2018, 1,000,000 unlisted options were granted to other management personnel. The exercise price of
the options of $0.30 was 122% higher than the market price of the share at the date of the grant. The vesting of these
options is conditional on continued employment until the vesting date, being 18 months from grant date. The contractual
life of each option is four years.
●
On 17 November 2018, the Board waived the employment condition attaching to performance rights issued to Mr Albert
Wong who resigned as a director of the company. Vesting conditions relating to the turnover of the Company remain
with these rights. The performance rights expired during the year ended 30 June 2021.
●
On 3 December 2018, 1,500,000 unlisted options were granted to other management personnel. The exercise price of
the options of $0.129 was 50% higher than the market price of the shares on the date of grant. The vesting of these
options is conditional on continued employment until the vesting date, being three years from grant date. The contractual
life of each option is four years. The vesting condition were not met and the options were forfeited during the year ended
30 June 2021.
●
On 1 January 2019, 3,000,000 unlisted options were granted to Ian Henderson, the Chief Executive Officer of the
company. The options are exercisable at $0.1005 expiring 1 January 2023 under the terms of the Long Term Incentive
Plan approved by shareholders at the Annual General Meeting held on 30 November 2016. The vesting of these options
is conditional on continued employment until the vesting date, being three years from grant date. The exercise price of
$0.1005 was 50% higher than the market price of the shares on the date of grant.
●
On 1 January 2019, 5,391,063 unlisted performance rights were granted to Ian Henderson in lieu of the first year’s cash
salary of £210,000. The performance rights have service-based vesting conditions only. The performance rights vested
on 1 January 2020 and were all converted into ordinary shares on 13 March 2020.
●
On 27 November 2019, 279,950 unlisted options were granted to Jacqueline Kilgour, a director of the company. The
exercise price of the options of $0.29 was 87% higher than the market price of the shares on the date of grant. The
options vest on 17 November 2020 and the contractual life of each option is four years.
Kyckr Limited
Notes to the financial statements
30 June 2021
Note 31. Share-based payments (continued)
52
●
On 27 November 2019, 279,950 unlisted options were granted to Karina Kwan, a director of the company. The exercise
price of the options of $0.29 was 87% higher than the market price of the shares on the date of grant. The options vest
on 17 November 2020 and the contractual life of each option is four years.
●
On 1 January 2020, 3,000,000 unlisted options were granted to Ian Henderson, the Chief Executive Officer of the
company. The exercise price of the options of $0.165 was 43% higher than the market price of the shares on the date
of grant. The options vest on 1 January 2023 and the contractual life of each option is four years.
●
On 12 January 2021, 3,000,000 unlisted options were granted to Ian Henderson, Chief Executive Officer. The exercise
price of the options of $0.114 was 48% higher than the market price of the shares at the date of grant. The vesting of
these options is conditional on continued employment until the vesting date, being 3 years from grant date. The
contractual life of each option is 4 years.
Set out below are summaries of options granted under the plan:
2021
Balance at
Expired/
Balance at
Exercise
the start of
forfeited/
the end of
Grant date
Expiry date
price
the year
Granted
Exercised
other
the year
12/01/2021
01/01/2025
$0.114
-
3,000,000
-
-
3,000,000
01/01/2020
01/01/2024
$0.165
3,000,000
-
-
-
3,000,000
27/11/2019
27/11/2023
$0.290
559,900
-
-
-
559,900
01/01/2019
01/01/2023
$0.100
3,000,000
-
-
-
3,000,000
10/08/2018
10/08/2022
$0.200
1,000,000
-
-
-
1,000,000
10/08/2018
10/08/2022
$0.260
1,000,000
-
-
-
1,000,000
02/01/2018
02/01/2022
$0.300
2,000,000
-
-
-
2,000,000
30/11/2016
30/11/2020
$0.300
2,722,222
-
-
(2,722,222)
-
30/11/2016
30/11/2020
$0.300
2,000,000
-
-
(2,000,000)
-
01/09/2016
01/09/2020
$0.300
4,000,000
-
-
(4,000,000)
-
01/09/2016
01/09/2020
$0.200
4,000,000
-
-
(4,000,000)
-
23,282,122
3,000,000
-
(12,722,222)
13,559,900
Weighted average exercise price
$0.223
$0.114
$0.000
$0.269
$0.149
2020
Balance at
Expired/
Balance at
Exercise
the start of
forfeited/
the end of
Grant date
Expiry date
price
the year
Granted
Exercised
other
the year
01/01/2020
01/01/2024
$0.165
-
3,000,000
-
-
3,000,000
27/11/2019
18/11/2023
$0.290
-
559,900
-
-
559,900
01/01/2019
01/01/2023
$0.100
3,000,000
-
-
-
3,000,000
10/08/2018
10/08/2022
$0.200
1,000,000
-
-
-
1,000,000
10/08/2018
10/08/2022
$0.260
1,000,000
-
-
-
1,000,000
02/01/2018
02/01/2022
$0.300
2,000,000
-
-
-
2,000,000
30/11/2016
30/11/2020
$0.300
2,722,222
-
-
-
2,722,222
30/11/2016
30/11/2020
$0.300
2,000,000
-
-
-
2,000,000
01/09/2016
01/09/2020
$0.300
4,000,000
-
-
-
4,000,000
01/09/2016
01/09/2020
$0.200
4,000,000
-
-
-
4,000,000
19,722,222
3,559,900
-
-
23,282,122
Weighted average exercise price
$0.240
$0.185
$0.000
$0.000
$0.233
Kyckr Limited
Notes to the financial statements
30 June 2021
Note 31. Share-based payments (continued)
53
Set out below are the options exercisable at the end of the financial year:
2021
2020
Grant date
Expiry date
Number
Number
10/08/2018
10/08/2022
2,000,000
2,000,000
02/01/2018
02/01/2022
2,000,000
2,000,000
30/11/2016
30/11/2020
-
4,722,222
30/11/2016
01/09/2020
-
8,000,000
27/11/2019
27/11/2023
559,900
-
4,559,900
16,722,222
The weighted average share price during the financial year was $0.07.
The weighted average remaining contractual life of options outstanding at the end of the financial year was 2.73 years (2020:
1.31 years).
Set out below are summaries of performance rights granted under the plan:
2021
Balance at
Expired/
Balance at
Exercise
the start of
forfeited/
the end of
Grant date
Expiry date
price
the year
Granted
Exercised
other
the year
01/09/2016
01/09/2020
$0.000
4,000,000
-
-
(4,000,000)
-
4,000,000
-
-
(4,000,000)
-
2020
Balance at
Expired/
Balance at
Exercise
the start of
forfeited/
the end of
Grant date
Expiry date
price
the year
Granted
Exercised
other
the year
01/09/2016
01/09/2020
$0.000
7,000,000
-
-
(3,000,000)
4,000,000
01/01/2019
01/04/2020
$0.000
5,391,063
-
(5,391,063)
-
-
12,391,063
-
(5,391,063)
(3,000,000)
4,000,000
No performance rights are exercisable at the end of the year.
The weighted average remaining contractual life of performance rights outstanding at the end of the financial year was nil
years (2020: 0.17 years).
For the options granted during the current financial year, the valuation model inputs used to determine the fair value at the
grant date, are as follows:
Share price
Exercise
Expected
Dividend
Risk-free
Fair value
Grant date
Expiry date
at grant date
price
volatility
yield
interest rate
at grant date
01/01/2021
01/01/2025
$0.077
$0.114
108.03%
-
0.34%
$0.051
Note 32. Events after the reporting period
On 30 August 2021, pursuant to a private placement to professional and sophisticated investors, the company issued
85,962,465 ordinary shares at 4 cents each raising $3.4 million before costs (Tranche 1). The company has obtained firm
commitments from professional and sophisticated investors for the issue of 64,037,535 additional ordinary shares at $0.04
per share that will raise a further $2.6 million (Tranche 2). This issue is subject to shareholder approval at a meeting to be
held in late September 2021.
Kyckr Limited
Notes to the financial statements
30 June 2021
Note 32. Events after the reporting period (continued)
54
A Share Purchase Plan was offered to shareholders on 1 September 2021. The Plan closes on 22 September 2021 and is
expected to raise over $500,000.
The consequences of the Coronavirus (COVID-19) pandemic are continuing to be felt around the world, and its impact on
the consolidated entity, if any, has been reflected in its published results to date. Whilst it would appear that control measures
and related government policies, including the roll out of the vaccine, have started to mitigate the risks caused by COVID-
19, it is not possible at this time to state that the pandemic will not subsequently impact the consolidated entity's operations
going forward. The consolidated entity now has experience in the swift implementation of business continuation processes
should future lockdowns of the population occur, and these processes continue to evolve to minimise any operational
disruption. Management continues to monitor the situation both locally and internationally.
No other matter or circumstance has arisen since 30 June 2021 that has significantly affected, or may significantly affect the
consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial
years.
Kyckr Limited
Directors' declaration
30 June 2021
55
In the directors' opinion:
●
the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards, the
Corporations Regulations 2001 and other mandatory professional reporting requirements;
●
the attached financial statements and notes comply with International Financial Reporting Standards as issued by the
International Accounting Standards Board as described in note 2 to the financial statements;
●
the attached financial statements and notes give a true and fair view of the consolidated entity's financial position as at
30 June 2021 and of its performance for the financial year ended on that date; and
●
there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due
and payable.
The directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
On behalf of the directors
___________________________
___________________________
Rajarshi Ray
Karina Kwan
Chairman
Director
22 September 2021
Sydney
56
Independent Auditor’s Report to the Members of Kyckr Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Kyckr Limited (the Company and its subsidiaries (the Group)), which
comprises the consolidated statement of financial position as at 30 June 2021, the consolidated statement
of profit or loss and other comprehensive income, consolidated statement of changes in equity and
consolidated statement of cash flows for the year then ended, and notes to the financial statements,
including a summary of significant accounting policies, and the directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act
2001, including:
i)
giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its financial
performance for the year then ended; and
ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the ‘auditor’s responsibilities for the audit of the financial report’ section
of our report. We are independent of the Group in accordance with the Corporations Act 2001 and the
ethical requirements of the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics
for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit
of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with
the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given
to the directors of the Company, would be in the same terms if given to the directors as at the time of this
auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial report of the current period. These matters were addressed in the context of our
audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
Key audit matter
How our audit addressed the key audit matter
Recoverability of goodwill
Refer to note 13
The carrying value of the Group’s
intangible assets included goodwill
of $8,448,416 arising from the
Our procedures included, amongst others:
We evaluated management’s process for developing the cash
flow forecasts;
We tested the mathematical accuracy of the underlying
‘value-in-use’ calculations;
57
Key audit matter
How our audit addressed the key audit matter
acquisition of Kyckr Ireland during
the 2017 financial year.
The assessment of recoverability
of the goodwill required a
significant degree of management
judgement given the short trading
history of the Group, the early
lifecycle stage, and the inherent
uncertainties in the key
assumptions used in the
assessment of future cash flows in
particular revenues, earnings
before interest and the discount
rate.
We assessed and challenged the appropriateness of the
inputs into management’s calculations as follows:
- Comparing and calculating revenue and expense cash flows
with historical performance and new business avenues
announced to the market;
- Comparing the forecasted cash flows estimated in prior
periods to financial performance during the current
financial year;
- Comparing growth rates with the performance of other IT
start-ups;
- Comparing sales pipeline data to converted sales and year
end pipeline data to future expectations;
- Recalculating the discount rate using the most current risk
free rates, market alpha, beta and risk premium estimates;
We performed sensitivity calculations for changes to the key
inputs to management’s model;
We compared the net assets of the Group to the Group’s
market capitalisation, including consideration of the factors
impacting the share price and activities undertaken by the
Group.
Other information
The directors are responsible for the other information. The other information comprises the information
in Kyckr Limited’s annual report for the year ended 30 June 2021, but does not include the financial report
and the auditor’s report thereon. Our opinion on the financial report does not cover the other information
and we do not express any form of assurance conclusion thereon. In connection with our audit of the
financial report, our responsibility is to read the other information and, in doing so, consider whether the
other information is materially inconsistent with the financial report or our knowledge obtained in the
audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of the other
information we are required to report that fact. We have nothing to report in this regard.
Directors’ responsibility for the financial report
The directors of the Company are responsible for the preparation of the financial report that gives a true
and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for
such internal control as the directors determine is necessary to enable the preparation of the financial
report that gives a true and fair view and is free from material misstatement, whether due to fraud or
error.
In preparing the financial report, the directors are responsible for assessing the Group’s ability to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
Auditor’s responsibility for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
58
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at The Australian
Auditing and Assurance Standards Board website at:
www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf. This description forms part of our auditor’s
report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 14 to 20 of the directors’ Report for the year
ended 30 June 2021.
In our opinion, the Remuneration Report of Kyckr Limited for the year ended 30 June 2021, complies with
section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an
opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing
Standards.
Nexia Sydney Audit Pty Ltd
Mark Boyle
Director
Dated: 22 September 2021
Kyckr Limited
Shareholder information
30 June 2021
59
The shareholder information set out below was applicable as at 21 August 2021.
Distribution of equitable securities
Analysis of number of equitable security holders by size of holding:
Ordinary shares
Options over ordinary
shares
% of total
% of total
Number
shares
Number
shares
of holders
issued
of holders
issued
1 to 1,000
50
-
-
-
1,001 to 5,000
246
0.25
-
-
5,001 to 10,000
488
1.15
-
-
10,001 to 100,000
1,139
12.14
-
-
100,001 and over
328
86.45
5
100.00
2,251
99.99
5
100.00
Holding less than a marketable parcel
46
-
-
-
Equity security holders
Twenty largest quoted equity security holders
The names of the twenty largest security holders of quoted equity securities are listed below:
Ordinary shares
% of total
shares
Number held
issued
Mr Richard John White
55,635,000
16.18
CS Third Nominees Pty Limited (HSBC Cust Nom Au Ltd 13 A/C)
30,208,121
8.79
National Nominees Limited
25,182,891
7.32
Citicorp Nominees Pty Limited
15,372,262
4.47
HSBC Custody Nominees (Australia) Limited
14,523,454
4.22
Mr Benjamin Cronin
9,096,352
2.65
Dixson Trust Pty Limited
7,312,500
2.13
Mr Robert Henry Leslie
7,046,470
2.05
J P Morgan Nominees Australia Pty Limited
6,808,000
1.98
Mr Ian Arthur Henderson
5,497,249
1.60
Fusheng Investments Limited
5,000,000
1.45
Jinland Pty Ltd (Jinland Family A/C)
4,581,994
1.33
Muhlbauer Investments Pty Ltd (Muhlbauer Family A/C)
3,423,251
1.00
Mr John Van Der Wielen
2,687,109
0.78
BNP Paribas Nominees Pty Ltd Hub24 Custodial Serv Ltd (DRP A/C)
2,442,142
0.71
Mr Peter Howells
2,275,000
0.66
Mr Richard Wood
2,230,703
0.65
BNP Paribas Noms Pty Ltd (DRP)
2,065,885
0.60
Mr Xia Li
1,945,906
0.57
Mr John Murray
1,880,703
0.55
205,214,992
59.69
Unquoted equity securities
Number
Number
on issue
of holders
Options over ordinary shares issued
13,559,900
5
Kyckr Limited
Shareholder information
30 June 2021
60
The following person holds 20% or more of unquoted equity securities:
Name
Class
Number held
Mr Ian Henderson
Options
9,000,000
Substantial holders
Substantial holders in the company are set out below:
Ordinary shares
% of total
shares
Number held
issued
Richard John White
55,635,000
16.18
Regal Funds Management Pty Ltd
34,627,974
10.07
Perennial Value Management
23,853,157
6.94
Voting rights
The voting rights attached to ordinary shares are set out below:
Ordinary shares
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each
share shall have one vote.
There are no other classes of equity securities.