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Building
Momentum
Annual Report 2021
ABn 93 624 448 693
Appendix 4E
For the year ended 30 June 2021
Results for announcement to the market
Previous corresponding period: year ended 30 June 2020
Revenue from ordinary activities
Loss from ordinary activities after tax attributable to members
Net loss for the period attributable to members
A$
UP/down
MoveMent %
8,790,322
(8,546,086)
(8,546,086)
Up
Up
Up
3.6%
123.3%
123.3%
The group has reported a loss for the period of A$8,546,086 (2020: $3,826,550), with net assets amounting to A$24,392,797
as at 30 June 2021 (2020: A$16,179,220), including cash reserves of A$21,305,963 (2020: A$14,970,488).
Please refer to the ‘review of operations and activities’ on pages 10 to 14 for further explanation of the results.
Additional information supporting the Appendix 4E disclosure requirements can be found in the review of operations and activities
and the financial statements for the year ended 30 June 2021.
dividends
No dividends have been paid or declared by QuickFee Limited for the current financial year. No dividends of QuickFee Limited were
paid for the previous financial year.
Net tangible assets per ordinary share
Net tangible assets per ordinary share
Changes in controlled entities
30 JUne 2021
30 JUne 2020
Cents
10.68
Cents
8.04
QuickFee GCI Pty Limited was deregistered on 3 January 2021. There have been no other changes in controlled entities during
the year ended 30 June 2021.
Audit
The financial statements have been audited by the group’s independent auditor without any modified opinion, disclaimer
or emphasis of matter.
There’s an easier way
to get paid.
Since 2009, QuickFee has offered online payment and
financing solutions that help professionals overcome
challenges in accepting payments.
Serving thousands of professional service firms across the
United States (US) and Australia, QuickFee is now bringing
its proven payments model to a wider range of businesses
than ever before, from personal and home services to the
commercial space.
QuickFee aims to deliver a fully integrated and personalised
online payment experience for each merchant. As a trusted
payments solution provider, it’s our goal to help merchants
get paid anytime, anywhere – while their customers get all
the payment flexibility they need.
Simply put? We’re on a mission to make the payment
process easier for everyone.
We empower customers to pay how and when they want, so businesses
can focus on what they do best.
Contents
Letter from the Chair
Our business model
Our competitive advantage
Letter from the CEO
Review of operations and activities
Directors’ report
Auditor’s independence declaration
Corporate governance statement
Financial statements
Directors’ declaration
Independent auditor’s report
Shareholder information
Corporate directory
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IBC
QuickFee Limited ABN 93 624 448 693
Letter from
the Chair
Dear shareholders,
I am delighted to present to you QuickFee’s Annual Report for
the year ended 30 June 2021 (FY21), after another busy year
for all at QuickFee.
QuickFee has provided online payment and flexible financing
solutions for the clients of professional services firms in
Australia since 2009, and in the US since 2016.
QuickFee grew across all key business drivers in the US, which
is the market that represents the largest growth opportunity
for the business. Growth was achieved across all products,
merchants, and customer numbers, with PayNow transactions
totalling US$668 million, up 119% on prior year. Lending in
the US was up 20% to US$15.6 million, a solid result during
a period in which government stimulus measures reduced
demand for lending.
Our Australian business faced a challenging year, with lending
down on the prior year due to government COVID-19 stimulus
measures reducing the demand for lending. Pleasingly, there
was a marked improvement in lending levels in the last quarter
of the year, coinciding with the tapering of the JobKeeper
stimulus program. This uptick in lending has continued into
FY22 and gives us confidence for a return to pre-COVID-19
lending levels.
QuickFee completed a strongly supported share placement
and purchase plan of A$17.5 million in October 2020, for
further investment in the business.
We’ve invested heavily in technology and in our team to
provide additional expertise, and with a number of key roles
now filled by highly experienced executives across sales and
marketing, payments, and technology, we enter FY22 with
a team and the talent that is well equipped to take advantage
of the many growth opportunities we see in front of us.
Recognising the US growth opportunity, the board appointed
Eric Lookhoff, a deeply experienced US payments executive,
as President of the US business in February 2021, and in July
Eric was promoted to Managing Director and Chief Executive
2
Officer. This marked the completion of an orderly transition
from our founder Bruce Coombes. Bruce will continue in the
important role of overseeing our Australian operations with
a remit that includes responsibility for special projects, and
as an Executive Director. We thank Bruce for his vision and
entrepreneurship and for the enormous contribution he has
made to date, and look forward to his valuable contribution
to the business well into the future.
Adding to the senior team, Simon Yeandle was appointed in
October as the new Chief Financial Officer and he has brought
with him significant experience and a steady hand as we
continue to review a number of opportunities and projects,
in a rapidly consolidating sector.
I would like to thank the wider QuickFee team for their
dedicated efforts in what was a challenging year and in an
unprecedented working environment. The work they have
performed to build the company’s foundation for a strong
future, is sincerely appreciated.
My fellow directors and I also wish to express our gratitude
to all shareholders, both new and existing, for your support.
We are confident you will prosper from your investment in
QuickFee in the years to come.
We look ahead with a great deal of optimism. The combination
of structural tailwinds, significant investments in our team and
technology, and a very large market opportunity, mean we are
well positioned for what lies ahead.
Yours sincerely,
Barry Lewin
Non-Executive Chairman
Our business model
A proven payments
platform, built to scale.
Driving revenue and customer
satisfaction with flexible
payment options
Customers everywhere are asking for more flexible payment options. In 2020,
more than 55% of all consumers said they had used ‘buy now, pay later’ services
and alternative financing methods, representing a 50% increase in new users by
March 2021.
At QuickFee, we’ve focused on making it simple for merchants to accept payment
with ACH/EFT, credit card, financing, or in four monthly instalments, all through
one secure online portal. This portal provides a seamless payment and billing
experience, helping merchants stay on top of receivables – and keeping
customers happy for the long term.
QuickFee Limited | Annual Report 2021
3
Our online payment and
financing solutions suite:
Pay in full:
Pay over time:
Pay in 4:
Connect:
Simple online payments.
Accept credits cards as
well as ACH/EFT to reduce
or eliminate manual paper
cheque processes.
Paymentfinancing
flexibilityforprofessional
services clients; gives
customers 3 to 12 months
to pay.
‘Buy now, pay later’
option thatallows
customers to make
4 interest-freemonthly
payments, using the credit
card they already have.
Streamline the entire customer
experiencewithintegrated
payment functionality.
Personalised invoice links,
automated reminders,
easy reconciliation.
4
Loved by customers:
95%
81%
of QuickFee users said they
would be more likely to use
a serviceproviderwhooffered
a payment or instalment plan
of QuickFee users found
QuickFee’s platform and
solutions ‘easy to use’
73%
of QuickFee users said they
would prefer to use a payment
or instalment plan for a large
or emergency purchase
QuickFee Limited | Annual Report 2021
5
*Results from a March 2021 survey sent to 1,400 QuickFee end users
Our competitive advantage
Payments for
professionals,
made simple.
Building on our track record of innovation
in professional services
QuickFee continues to execute on its advantages within
the professional services industry in the US and Australia.
Expanding on our 11-year history working with top accounting
and legal firms, professional associations, and state societies,
QuickFee has access to a large and highly targeted audience
for our integrated payments suite.
We’ve also combined ‘buy now, pay later’ instalments and
financing offerings for the professional services market,
where in-house payment plans and third-party financing
still dominate much of the landscape. This allows us to provide
much-needed financing flexibility for firms and their clients.
QuickFee’s long-term strategy is underpinned
by these four pillars:
1. Robust and effective go-to-market strategy
2. Scalable and user-friendly payment processing platform
3.
Improved economic model, expected to deliver greater
transactional margin and higher processing yields across
lending and payments
4. Highly engaged and experienced team of payments
and lending professionals
6
Connecting professionals
with their clients
By giving professional service providers the integrated
payment experiences they need, we’re helping firms
to re-think and re-frame terms like ‘client experience’.
That means partnering with leading software companies
in accounting, legal, and other professional service fields to
create a true end-to-end platform for billing and payments.
It also means taking advantage of new opportunities to
integrate and expand our platform in the coming year.
We’ve seized on the chance to partner with:
Xero:
One of the fastest-growing cloud-based
accounting software companies globally.
QuickFee integrated with Xero in 2021,
adding our payments application to the
Xero marketplace.
SafeSend:
QuickFee teamed up with accounting
software provider SafeSend on workflow
and collaboration solutions for certified public
accountants (CPAs) and tax preparers.
BlueSnap:
BlueSnap is a global payments technology
company. This year, we expanded on a
strategic partnership with BlueSnap to further
scale the QuickFee payments ecosystem.
GreatSoft:
An integration with GreatSoft Australia,
a cloud practice management provider,
allows professional services clients to
pay 24/7 through a QuickFee link on their
online invoices.
QuickFee Limited | Annual Report 2021
7
Letter from
the CEO
Dear shareholders,
Greetings, I hope this message finds you and your families
healthy and successfully navigating the COVID-19 pandemic.
I am pleased to provide QuickFee’s FY21 annual report, and
to present our strategy as we build upon the solid foundation
achieved to date.
During the past financial year, QuickFee accomplished several
important milestones which support our vision for QuickFee’s
immediate future and position us strongly for creating near
and longer-term enterprise value.
Beyond the well supported share placement in October 2020,
these include the development of our proprietary payment
technology platform in Q1, the initial launch of our ‘buy now,
pay later’ instalment product in partnership with SplitIt in Q2,
attracting a deeply experienced team of payment professionals
across the enterprise during Q3 and Q4, and significant
growth in our US payments business eclipsing the US$1 billion
lifetime total transaction value (TTV) mark in April 2021.
As has occurred in so many industries, the COVID-19
pandemic catalysed a shift for QuickFee as well. As the
Australian and US governments responded with a flood of
stimulus, our customers responded by shifting their spend
from longer-term financing options to shorter-term payments.
Though this temporarily depressed volume in our lending
product (we began seeing a rebound during Q4 beginning
with the Australian business) it sparked a significant increase
in demand for our ACH and card payment solutions,
particularly in the US. The result has been the rapid evolution
of QuickFee from merchant-backed loan originator to merchant
acquirer and full-service payments company.
This evolutionary change and the exciting opportunities
created, is what attracted me to join QuickFee in February
and to build upon a great legacy by succeeding our founder
Bruce Coombes, as Chief Executive Officer in July. I am
honoured to lead QuickFee into this exciting and opportunity-
filled next stage of growth.
These important milestones and shifting dynamics
underscore and help define who we are and how we
serve moving forward.
Who we are
Since our founding in 2009, QuickFee has primarily served
the professional service firm, earning a leading position both
in Australia and the US. Indeed, 29% of the top 100 and 34%
of the top 400 accounting firms in the US rely on QuickFee’s
suite of payment solutions every day to serve their clients.
8
As we move forward in this key vertical, we have developed
capacity to expand beyond the largest firms, and capture
market share across the entire industry. In the US, the
continued shift to digital invoicing which was accelerated
by the COVID-19 pandemic favours our unique offering,
and our developing integration capabilities will help to ensure
we reap the benefits of this digital shift, not only in the fields
of accounting and law, but also in commercial services
including home and automotive repair, education, and health
and wellness.
Talent first. Location second.
In response to the challenges of the COVID-19 pandemic, we
took the opportunity of becoming a truly talent first, location
second organisation, particularly in our US business where
the evolution from lender to payments company is most
pronounced. This included investments in attracting highly
skilled and deeply experienced professionals from some of the
largest and most successful financial technology, payments,
and lending businesses in the country. Key additions were
made across the enterprise in product, sales, operations,
risk management, and technology all bringing substantial
experience to QuickFee. To our original US office based in
Los Angeles, California we have added talented payments
professionals working remotely across more than ten states
and four time zones further supporting our clients on a
nationwide level.
As our team has developed, so too has our culture, and we are
pleased to have partnered across the QuickFee organisation
to establish our core shared values. These foundational and
distinctive behaviours underpin our diversity, inclusion, and
community give back programs. Our values are our essence
and describe not only who we are on our best days, but how
we choose to support our customers every day.
• Humanity – we bring our humanity to every conversation
with an open heart and an open mind
• Care – we care for our people and the communities in which
we serve
• Serve – we are in service to our customers, stakeholders,
and to each other
• Solve – we solve before we sell because persistent curiosity
delivers stronger outcomes
• Evolve – we rise, fall, fix, and learn together
How we serve
Leveraging our accomplishments over the past financial year,
our leading position in professional services, and expanded
team of talented payments professionals, QuickFee moves
forward on a solid foundation to continue delivering across
four key capabilities:
‘ execute a robust and effective go-to-market strategy
underpinned by clear brand positioning, precision demand
generation, and high-velocity sales conversion’
To penetrate the large and growing professional services
space in the US, QuickFee has relied predominantly on a direct
sales model, which has proven effective in building our strong
portfolio of top 100 and top 400 accounting firms. As the
largest merchant-backed lender to accounting firms in the US,
we will continue to build upon our market leading position.
The growth and scale we experienced over the past financial
year, however, has brought increased capabilities which we
will deploy aggressively across an expanded go-to-market
strategy. Augmenting our traditional direct sales model, we
have developed additional channels including independent
sales organisations (ISOs), strategic partnerships, independent
software vendors (ISVs), and value-added resellers (VARs).
These additional channels are supported by our improved
technology, new demand generation architectures and brand
strategy, and led by industry experts attracted to the QuickFee
team over the past two quarters. Together, this expanded
go-to-market strategy amplifies our marketing investments,
creates greater scale, and improves operating efficiency.
‘ Build a highly scalable and user-friendly processing
platform’
Technology development remains a cornerstone of QuickFee’s
success and is crucial to maintaining its advantage over
competitors. In FY21, QuickFee continued to build on
previous technology projects while integrating many new
enhancements and innovations across all revenue streams.
Among the significant developments over the financial year,
Connect is expected to be a key innovation. Initially launched
at the end of FY21, this integration and e-invoicing tool
automates electronic invoices through the QuickFee platform
and is expected to capture higher processing volumes of
existing customers while further cementing relationships.
Connect is just one example of the many integrations we are
bringing to market, all necessary to deepen our merchant
relationships and create greater lifetime value.
There have also been key developments across many of
QuickFee’s products, including completion of our proprietary
payment and processing platform QUBE, first leveraged with
the initial launch of our ‘buy now, pay later’ instalment solution.
Through the recently announced BlueSnap partnership, QUBE
will expand to support our ACH/EFT product creating greater
processing capacity, and to our branded card solution
augmenting a current third-party referral model.
‘ Develop an improved economic model which is expected
to deliver greater transactional margin and higher
processing yields across lending and payments’
Underpinning the improved unit economics are additional
integrations that further expand existing card, ACH/EFT, and
merchant processing capabilities. The added functionality,
tailored to meet growing demand in the broader services
sector for flexible payment options, will drive greater platform
scalability across the QuickFee portfolio.
This modern platform enables seamless API connectivity with
QuickFee’s new technology suite and provides greater and
more rapid product development. Our QUBE technology
developments, combined with the BlueSnap partnership,
deliver the following benefits which collectively expand
transactional margin and yield across our product suite:
• Increased ACH processing functionality
• Personalised merchant settlement options
• Enhanced fraud monitoring and risk management
• Improved underwriting and onboarding automation
• Expanded credit card and ‘buy now, pay later’ offerings
‘ Attract a highly engaged, experienced, motivated
and high-performing team of payments and lending
professionals’
QuickFee has a strong focus on attracting and retaining the
right people to ensure the future success of the business.
To our existing depth of professional service firm knowledge,
we added payments expertise across the enterprise, focused
predominantly on driving growth in the US market.
We are proud of our team and culture and know that our
people have always been and will always be the significant
driver of our progress. We are grateful for their many sacrifices,
flexibility during the global COVID-19 pandemic, and for the
hearts and souls they bring each day to QuickFee.
Our accomplishments during FY21 combined with
development across our four guiding principles above position
QuickFee strongly as we enter FY22 – able to execute on our
strategy and drive growth into the future.
I would like to thank our founder Bruce Coombes and the
entire QuickFee team for welcoming me so warmly in
February, and for their openness to the many changes and
accelerated pace over the past six months. I would also like to
thank the board of directors for their support and confidence
in appointing me Managing Director and Chief Executive
Officer in July. Finally, and ultimately, I am honoured to serve
our shareholders and look forward to delivering on the trust
you have placed in QuickFee.
Sincerely,
Eric Lookhoff
Managing Director and Chief Executive Officer
QuickFee Limited | Annual Report 2021
9
Review of operations and activities
Another year,
another leap forward.
QuickFee continues to build out its suite of payment solutions and loan origination offerings to be
a significant provider of online payments and lending, helping service businesses grow and get paid.
During COVID-19 we diversified and expanded into a multi-revenue payments and lending business
positioned for growth.
Profit & loss: results reflect
investment in future growth
The group reported revenue growth of 4% to A$8.8 million,
with a major contributor being growth in the payments and
processing platform in the US market which continues to
benefit from the structural shift to online invoicing and
payments, which has been accelerated by COVID-19.
Costs of our new merchant and customer acquisition function
continued to increase, up 60% to A$4.0 million, as the group
invests in its sales teams to grow the number of merchants
using the QuickFee platform. Over 1,500 merchants are now
using the platform, representing a 20–25% increase in the US,
which is the key growth market for the group.
Product and development expenditure was up 430% to
A$3.7 million. We continue to build out our current technology
platforms and product offerings with a core focus on
integration: how we can integrate our platform with other
software providers and merchants’ platforms. New
innovations such as Connect are just one example of this.
After customer acquisition and product development
expenses, the group reported an adjusted EBITDA before
significant items of A$(7.7) million. Other key results
comprised:
• Australian segment: adjusted EBITDA before significant
items of A$0.6 million;
• US segment: adjusted EBITDA before significant items
of A$(3.1) million; and
• Product development and unallocated costs were
A$5.1 million.
Gross profit margins saw a marked improvement on the
previous financial year with an increase of A$0.6 million (or 9.7%)
to A$6.3 million (FY20: A$5.7 million), as a result of surplus
cash reducing interest expense in Australia and the positive
impact of fixed cost leverage on our payments platforms.
Minimal levels of bad debts have been incurred across the
business, and provision for expected credit losses in FY21 was
0.26% of total lending, with a five-year average of 0.31% of
total lending. This demonstrates well the low credit risk nature
of QuickFee’s lending products and rigorous credit processes;
when coupled with the launch of the low credit risk QuickFee
Instalments product, bad debts from these products are
expected to remain at this very low level.
The group reported a loss of A$8.5 million for the 12 months
to 30 June 2021 (2020: loss of A$3.8 million), reflecting the
continued investment in people and technology to position
QuickFee for future growth.
Balance sheet: well funded
Net assets as of 30 June 2021 amounted to A$24.4 million
(2020: A$16.2 million), including cash reserves of
A$21.3 million (2020: A$15.0 million).
QuickFee raised A$17.5 million in a share placement and
purchase plan in October 2020 to further fund its growth
path through investments in the continued innovation of its
technology, strengthening of its teams within both the US
and Australian markets and funding the launch of its QuickFee
Instalments product. The group remains well funded with
adequate liquidity and growth capacity. The decline in the
loan book to A$25.8m (30 June 2020: A$35.3m) reflects
the weak demand for lending in Australia throughout the
majority of FY21; only in Q4 did we see the beginnings of
demand improvement.
Discussions are well advanced with a leading global finance
company to secure expanded funding lines to support the
expected growth in QuickFee’s loan book.
8.8m 21m
A$8.8 million in revenues in FY21, up 4% over FY20
A$21.3 million in cash reserves at balance date
10
United States: benefiting from structural shifts to online payments,
growth across all products, merchant and customer numbers
The US is the market that represents the largest growth
opportunity to the business and growth was achieved across
all key metrics – product volumes, merchants, and customer
numbers – which was a very pleasing result.
The modernising of the US market and shift to electronic
invoices and payments is accelerating in the US, which has
benefited QuickFee in terms of the number and value of
transactions being processed on its platform, which in turn
provides opportunities for lending growth in the US.
Lending to clients of US merchants was up 20% to US$15.6
million (FY20: US$13.0 million). There was a minor year-on-
year reduction in the lending rates in the final two quarters
of FY21 due to the US government Paycheck Protection
Program and the recently approved US$1.9 trillion stimulus
package measures as a result of the COVID-19 pandemic.
Over FY21, there was a 119% increase in QuickFee’s
PayNow transaction volume, up to US$668.4 million
(FY20: US$304.6 million), driven by QuickFee’s growing
merchant base and the structural shift to online payments.
This was a pleasing outcome for what is a highly scalable
revenue stream and represents substantial upside opportunity
to the business as QuickFee continues to grow and the
adoption of online invoicing and payments increases. The
launch of Connect is expected to also drive increased volumes
through the QuickFee platform.
The US business continued to experience strong growth in
both active customers (up 114% on FY20 to 195k users) and
new merchant sign-ups, with 579 active merchants signed
to the QuickFee platform as of 30 June 2021, representing
a 51% increase on the previous financial year (FY20: 383).
US lending (US$M)
+20%
15.6
13.0
US PayNow (US$M)
+119%
668.4
304.6
FY20
FY21
FY20
FY21
US active merchants
+51%
579
383
US active customers
+114%
195k
91k
FY20
FY21
FY20
FY21
QuickFee Limited | Annual Report 2021
11
Review of operations and activities
Continued
Australia: reduced demand for lending, green shoots of return to
pre-COVID-19 levels with a stronger finish to the year
Demand for QuickFee’s lending products in Australia was
impacted by government stimulus measures which reduced
the demand for lending products, with lending down 37% to
A$31.2 million (FY20: A$49.3 million). However, there was
a notable improvement in lending levels in the last quarter of
the year, with the last three months of FY21 being the three
highest of the financial year in terms of lending volume.
This is reflective of the cessation of JobKeeper payments,
and positions QuickFee well for a stronger FY22.
QuickFee’s Australian business recorded 533 active
merchants using QuickFee’s AU platform in FY21, up 4%
(FY20: 513). The number of active customers using
QuickFee’s platform also rose 2% to 30.3k (FY20: 29.7k).
This is an encouraging result given the impact of the
pandemic stimulus and the relatively mature market in which
QuickFee Australia operates, emphasising the sustainable
nature of the QuickFee business model.
AU lending (A$M)
-37%
49.3
31.2
AU PayNow (A$M)
-0.2%
44.5
44.4
FY20
FY21
FY20
FY21
AU active merchants
+4%
AU active customers
+2%
513
533
29.7k
30.3k
FY20
FY21
FY20
FY21
12
Launch of QuickFee Instalments
Key leadership hires
QuickFee Instalments (QFI) was launched in late Q2 in
both the Australian and US markets and has substantially
increased the addressable market available to QuickFee,
whilst also granting access to new service industry verticals.
Furthermore, this new product has given QuickFee the ability
to provide payment solutions to lower credit risk customers
using the existing unused balance of their credit cards and
pre-authorisation technology, to further maintain very low
rates of bad debts. With a shorter three-month payment plan,
compared to the traditional lending product terms which
range from 3 to 12 months, QFI recycles capital at a greater
velocity, delivering lower loan book growth but more efficient
use of capital.
Since its launch there have been 577 and 234 merchants
signed up in the US and Australia, respectively, with these
numbers expected to increase into FY22 as the product
continues to gain traction.
On 1 July 2021, Eric Lookhoff became the new Chief Executive
Officer, an appointment indicative of the increasing importance
of the US market with founder Bruce Coombes now overseeing
the Australian operations and adopting responsibility for
special projects.
Eric has 25 years of payments experience, leading scale
initiatives at early and hyper-growth stage payments and
lending fintech companies. His recent senior executive roles
include Chief Operating Officer at National Litigation Law
Group and Freedom Financial Network as VP, Enterprise
Payment Operations and Continuous Improvement. Other
senior roles include those at Intuit, Discover Financial Services,
and First Data Corporation.
QuickFee saw notable transitions and changes made to
expedite growth and cement our position within the market.
Key executive hires include, Simon Yeandle appointed to the
role of Chief Financial Officer in October due to his significant
experience in senior financial roles, and Jay Alsup appointed
as Chief Marketing Officer in February bringing significant
senior level experience in marketing.
Board of directors and leadership team
Barry Lewin
Eric Lookhoff
Bruce Coombes
Dale Smorgon
Non-Executive Chairman
Managing Director and
Chief Executive Officer
Executive Director and
Managing Director, Australia
Non-Executive Director
Simon Yeandle
James Drummond
Jay Alsup
Francesco Fabbrocino
Chief Financial
Officer
Chief Operating
Officer
Chief Marketing
Officer
Chief Technology
Officer
QuickFee Limited | Annual Report 2021
13
Review of operations and activities
Continued
Outlook: well-positioned for growth
The ongoing adoption of online payments and invoices will drive more payments on the QuickFee platform. The strengthened
technology and sales and marketing team will drive further merchant growth, and there is an expectation to see improved
lending conditions.
QuickFee’s payment solutions have traditionally served a growing portfolio of enterprise professional service merchants.
Moving forward, we will deepen our focus in the enterprise professional services vertical and expand to other segments
of the services sector, including commercial and personal services, which opens new markets and higher yielding products.
‘ For the commercial and professional service provider who demands flexible payment
options for their customers, QuickFee delivers a personalised payment experience that
enables your business to grow and stay competitive. As your trusted payments partner,
we empower your customers to pay how and when they want, so you can focus on
what you do best.’
14
Directors’ report
For the year ended 30 June 2021
Your directors present their report on the consolidated entity consisting of QuickFee Limited and the entities it controlled at the
end of, or during, the year ended 30 June 2021. Throughout the report, QuickFee Limited is referred to as the ‘company’, or ‘group’
when including its subsidiaries comprising the consolidated entity.
This directors’ report covers the period from 1 July 2020 to 30 June 2021 (FY21). The comparative period is from 1 July 2019
to 30 June 2020 (FY20).
directors and company secretary
The following persons were directors of QuickFee Limited as at the date of this report:
• Barry Lewin, Non-Executive Chairman;
• Eric Lookhoff, Managing Director and Chief Executive Officer;
• Bruce Coombes, Executive Director and Managing Director, Australia; and
• Dale Smorgon, Non-Executive Director.
The directors listed above each held office as a director throughout the period and until the date of this report, other than:
• Eric Lookhoff, who was appointed Managing Director and Chief Executive Officer on 1 July 2021; and
• Bruce Coombes, who on 1 July 2021 transitioned from Managing Director and Chief Executive Officer to Executive Director
and Managing Director of the group’s Australian operations.
The company secretary is Simon Yeandle, appointed to the position on 3 March 2021. Simon is a Chartered Accountant and
joined the group on 9 October 2020 as Chief Financial Officer (CFO). He has previously held CFO roles at ASX listed companies
such as oOh!media Limited (ASX:OML) and 3P Learning Limited (ASX:3PL).
Jennifer James was company secretary from the beginning of the financial year until 3 March 2021.
Principal activities
The group has developed and generates revenue from a suite of payment and lending offerings via an online portal to professional,
commercial, and personal services providers. These solutions help customers of service providers (the group’s merchants) access
the advice and services they need, with the choice to pay immediately or over time by instalment. QuickFee’s integrated online
payment platform and financing solutions enable merchants to accept payments by card or ACH/EFT (QuickFee PayNow),
payment plan/loan (QuickFee Financing), or a ‘buy now, pay later’ instalment plan (QuickFee Instalments).
The group has established two separate operations:
• QuickFee AU for the Australian market, established in 2009; and
• QuickFee US for the United States market, established in 2016.
Dividends – QuickFee Limited
No dividends were declared or paid to members for the year ended 30 June 2021. The directors do not recommend that a dividend
be paid in respect of FY21.
Review of operations
Information on the operations and financial position of the group and its business strategies and prospects is set out in the review
of operations and activities on pages 10 to 14 of this annual report.
QuickFee Limited | Annual Report 2021
15
Directors’ report
continued
Significant changes in the state of affairs
Other than the information set out in the review of operations and activities on pages 10 to 14 of this annual report, there are
no significant changes in the state of affairs that the group has not disclosed.
Events since the end of the financial year
No matter or circumstance has arisen since 30 June 2021 that has significantly affected the group’s operations, results or state
of affairs, or may do so in future years.
Likely developments and expected results of operations
Other than the information set out in the review of operations and activities on pages 10 to 14 of this annual report, there are
no likely developments or details on the expected results of operations that the group has not disclosed.
environmental regulation
The group is not affected by any significant environmental regulation in respect of its operations.
Information on directors
The following information is current as at the date of this report.
Barry Lewin Non-Executive Chairman (MBA, B.Com, LLB)
Experience and expertise
Barry Lewin is the founder and Managing Director of Melbourne based corporate advisory firm
SLM Corporate, and has significant experience advising public and private companies on
transaction structuring, debt and equity issues, mergers, acquisitions, business sales and all
aspects of corporate governance. Prior to establishing SLM Corporate in 1999, Barry spent
12 years as an in-house counsel to a number of ASX listed companies.
Date of appointment
1 May 2019
Other current directorships
(listed)
Non-Executive Chairman of ELMO Software Limited (ASX:ELO), since 10 October 2018
Non-Executive Chairman of Praemium Limited (ASX:PPS), since 12 May 2017
Former directorships in
last 3 years (listed)
None
Special responsibilities
Chair of the board
Chair of the audit and risk committee
Member of the remuneration and nomination committee
Interests in securities
Ordinary shares
Options
2,143,000
300,000
16
Eric Lookhoff Managing Director and Chief Executive Officer (B.Fin)
Experience and expertise
Eric Lookhoff is a financial technology and payments senior executive and strategic advisor with
a 25+ year successful record creating organisational readiness for emerging and legacy payment
businesses, and third-party lenders.
Eric previously led payments scale initiatives across the business cycle from private equity backed
growth-stage fintechs (Freedom Financial, Electronic Clearing House, Beyond Finance, and
Currency Capital) to large-scale organisations (Intuit, Discover, First Data, and AIG).
Additionally, Eric has unique experience in scaling alternative professional services billing models
with subscription-based prepaid legal services as chief operating officer of National Litigation Law
Group. Eric’s payments and lending expertise is comprehensive across all parties—including capital
markets, syndication, channel acquisition, loan origination, marketing and analytics, risk, operations,
and settlement for consumer and commercial, issuers and acquirers, and processors and networks.
Date of appointment
1 July 2021
Other current directorships
(listed)
None
Former directorships in
last 3 years (listed)
None
Special responsibilities
Chief Executive Officer
Interests in securities
Ordinary shares
Performance rights
Options
–
950,000
3,000,000
Bruce Coombes Executive Director (B.Bus)
Experience and expertise
Bruce Coombes qualified as a Chartered Accountant in 1985 and has spent his entire career
within or providing solutions to the accounting profession. Bruce is a founder of both QuickFee AU
and QuickFee US, having overseen the business from its start-up phase through to its IPO until
30 June 2021 after which Bruce transitioned to the role of Managing Director, Australia.
Previously a partner in the accounting firm, Macquarie Partners (now part of Deloitte),
Bruce introduced outsourcing as a solution for Australian accounting firms. The business
he created, Accountants Resourcing, was ultimately acquired by a major financial institution.
Date of appointment
15 February 2018
Other current directorships
(listed)
None
Former directorships in
last 3 years (listed)
None
Special responsibilities
Managing Director, Australia
Member of the audit and risk committee
Member of the remuneration and nomination committee
Interests in securities
Ordinary shares
Options
25,239,453
3,000,000
QuickFee Limited | Annual Report 2021
17
Directors’ report
continued
dale smorgon Non-Executive Director (B.Com)
Experience and expertise
Dale Smorgon has held senior executive positions in a range of companies over the past 20 years,
including more than 10 years with Inmatrix, acquired in 2010 by SunGard Data Systems (now FIS).
Inmatrix delivered credit risk analytics and software solutions to major financial institutions and
professional firms in Australia and the United States. Dale has been a director of QuickFee AU
since 1 June 2012 and provides his experience and important strategic direction to the business.
Dale is currently the Chief Executive Officer of Innovative Retail Pty Ltd, which delivers premium
family entertainment experiences within shopping malls.
Date of appointment
15 February 2018
Other current directorships
(listed)
None
Former directorships in
last 3 years (listed)
None
Special responsibilities
Member of the audit and risk committee
Chair of the remuneration and nomination committee
Interests in securities
Ordinary shares
Options
23,839,451
300,000
Meetings of directors
The numbers of meetings of QuickFee Limited’s board of directors and of each board committee held during the year ended
30 June 2021, and the numbers of meetings attended by each director were:
FuLL mEEtiNgS oF DiRECtoRS
mEEtiNgS oF CommittEES
AUdIt And rIsk
reMUnerAtIon And
noMInAtIon
Barry Lewin
Bruce Coombes
Dale Smorgon
A
12
12
12
B
12
12
12
A
2
2
2
B
2
2
2
A
1
1
1
B
1
1
1
A = Number of meetings attended
B = Number of meetings held during the time the director held office or was a member of the committee during the year
18
Remuneration report (audited)
The remuneration report details the director and other key management personnel (KMP) remuneration arrangements for
QuickFee Limited, in accordance with the requirements of the Corporations Act 2001 and its Regulations.
The remuneration report is set out under the following main headings:
(a) Remuneration governance
(b) Key management personnel
(c) Human resource strategy and remuneration policy
(d) Remuneration payments and link between performance and reward
(e) Remuneration of key management personnel
(f) Key terms of employment contracts
(g) Additional statutory information
(a) remuneration governance
The remuneration and nomination committee is responsible for reviewing the remuneration arrangements for the group’s directors
and executives and making recommendations to the board. The remuneration and nomination committee has two key functions:
• The purpose of the remuneration function is to provide advice, recommendations and assistance to the board in relation to the
group’s remuneration policies and remuneration packages of senior executives, executive directors and non-executive directors.
• The purpose of the nomination function is to review and make recommendations to the board with respect to identifying
nominees for directorships and key executive appointments; considering the composition of the board, ensuring that effective
induction and education procedures exist for new board appointees, key executives and senior management; ensuring that
appropriate procedures exist to assess and review the performance of the chairman, non-executive directors and senior
executives. The responsibility for the group’s remuneration policy rests with the full board notwithstanding the establishment
of the committee.
Further information regarding the committee’s responsibilities is set out in the remuneration and nomination committee charter
which can be viewed at https://quickfee.com/investors/corporate-governance/corporate-governance-plan/.
Key management personnel are those persons having authority and responsibility for planning, directing and controlling
the activities of the group, directly or indirectly, including all directors (non-executive and executive) of the group.
QuickFee Limited | Annual Report 2021
19
Directors’ report
continued
(b) key management personnel
The directors and other key management personnel of the group during or since the end of the financial year were:
non-exeCUtIve dIreCtors
PosItIon
Barry Lewin
Dale Smorgon
Chair of the board
Chair of the audit and risk committee
Member of the remuneration and nomination committee
Member of the audit and risk committee
Chair of the remuneration and nomination committee
exeCUtIve dIreCtors
PosItIon
Eric Lookhoff
Bruce Coombes
President, US (1 February 2021 to 30 June 2021)
Chief Executive Officer (since 1 July 2021)
Chief Executive Officer (until 30 June 2021)
Managing Director, Australia (since 1 July 2021)
Member of the audit and risk committee
Member of the remuneration and nomination committee
othER kEy mANAgEmENt pERSoNNEL PosItIon
James Drummond
Richard Formoe
Simon Yeandle
Chief Operating Officer (COO; KMP until 31 January 2021)
Chief Revenue Officer (CRO; KMP until 31 January 2021)
Chief Financial Officer (CFO; KMP since 9 October 2020)
(c) Human resource strategy and remuneration policy
The framework encourages executive reward with the achievement of strategic objectives and the creation of value for
shareholders, and it is considered to be based on market best practice for the delivery of reward. The board of directors ensures
that executive reward satisfies the following key criteria for good reward governance practices:
• competitiveness and reasonableness;
• acceptability to shareholders;
• performance linkage and alignment of executive compensation; and
• transparency.
Assessing performance
The remuneration and nomination committee is responsible for assessing performance against key performance indicators (KPIs)
and determining the short-term incentives (STI) and long-term incentives (LTI) to be paid. To assist in this assessment, the
committee receives data from independently run surveys, but not external remuneration consultants.
Performance is monitored on an informal basis throughout the year and a formal evaluation is performed annually.
20
(d) Remuneration payments and link between performance and reward
QuickFee Limited’s remuneration strategy is designed to assist the group achieve its corporate objectives through appropriate
fixed and performance-based remuneration as detailed below:
Executiveremuneration
The group 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 for the year ended 30 June 2021 included:
• cash salary;
• superannuation;
• short-term incentives; and
• long-term incentives.
The combination of these comprises the executive’s total remuneration as detailed under ‘key terms of employment
contracts’ below.
Fixed remuneration, consisting of base salary, fees and superannuation is reviewed annually by the remuneration and nomination
committee based on individual and business performance, the overall performance of the group and comparable market remunerations.
Short-termincentives(STIplan)
QuickFee Limited has established a short-term incentive plan under which employees may be provided with a cash bonus for
achievement against key performance metrics.
Participation in the STI plan is determined at the discretion of the board. Key performance metrics will generally relate to conditions
that are within the control of the employee; for example, profit or sales targets, strategic measures or other such conditions as the
group may decide as relevant to the specific executive role. The quantum of any reward is determined by the board.
Long-termincentives(LTIplan)
QuickFee Limited has established a ‘Performance Rights and Options Plan’, adopted on IPO on 9 July 2019.
PerformanceRightsandOptionsPlan(PROP)
Equity incentives under the PROP may be granted to employees (or such other person that the board determines is eligible to
participate). Offers will be made at the discretion of the board. The terms of the incentives granted under PROP will be determined
by the board at grant and may therefore vary over time. QuickFee Limited will regularly assess the appropriateness of its incentive
plans and may amend or replace, suspend or cease using the PROP if considered appropriate by the board.
The PROP is intended to align the interests of the senior executives with shareholders. Awards under the PROP can be structured
as an option to receive shares at a future date subject to the recipient paying the exercise price (options) or a performance right
to acquire a share, subject to satisfaction of any vesting conditions (performance rights).
Grants under the PROP are made annually and are made to the senior executive team and such other executives as the board
may determine from time to time. Any grants are made subject to the ASX Listing Rules, to the extent applicable.
Bruce Coombes, the group’s then CEO was entitled to 3,000,000 executive options (QFEAB) granted on 9 July 2019. These
options expire on 9 July 2023 and comprise three tranches of 1,000,000 options (T1, T2 and T3) with exercise prices of A$0.30,
A$0.40 and A$0.50, respectively. T1 and T2 options vested on 9 July 2020 and 2021, respectively; T3 vest on 9 July 2022,
contingent on continued employment at the vesting date.
QuickFee Limited | Annual Report 2021
21
Directors’ report
continued
The group’s COO was entitled to 1,000,000 options (QFEAD) granted on 18 March 2020. These options expire on 30 June 2025
and comprise three tranches of options with exercise prices of A$0.50:
• Tranche 1 – 333,333 options, vested on 30 June 2020;
• Tranche 2 – 333,333 options, vest on satisfaction of an internal milestone condition;
• Tranche 3 – 333,334 options, vest on satisfaction of an internal milestone condition;
Each of the above unvested tranches will only be exercisable by the COO contingent on continued employment at each
vesting date.
The group’s CRO was entitled to 2,000,000 options, with 1,000,000 of these on the same terms and quantities as QFEAD T1,
T2 and T3 detailed above. On 30 June 2021, T2 and T3 options were forfeited on resignation, along with 500,000 each of QFEAE
and QFEAF options as described in the remuneration report for the year ended 30 June 2020.
The group’s CFO was entitled to 1,500,000 options granted on 26 May 2021 (not yet issued). These options expire on 31 January
2026 and comprise two tranches of options, contingent on continued employment at each vesting date:
• Tranche 1 – 750,000 options, vest on 8 October 2023, exercisable at A$0.50; and
• Tranche 2 – 750,000 options, vest on 8 April 2022, exercisable at A$0.75.
Eric Lookhoff, the group’s then President of US operations was entitled to 700,000 performance rights issued on 26 May 2021.
These performance rights vest on 31 January 2022, contingent on continued employment at the vesting date. Eric Lookhoff was
further entitled to 2,000,000 options granted on 26 May 2021 (not yet issued). These options expire on 31 January 2026 and
comprise two tranches of options, contingent on continued employment at each vesting date:
• Tranche 1 – 1,000,000 options, vest on 31 January 2023, exercisable at A$0.50; and
• Tranche 2 – 1,000,000 options, vest on 31 January 2024, exercisable at A$0.75.
The table below details the fixed, short- and long-term incentives in relation to executive remuneration and the link to the
group’s performance.
ELEmENt
PerforMAnCe MeAsUres
StRAtEgiC oBjECtivE/
pERFoRmANCE LiNk
Fixed remuneration
The position description of each executive
includes a set of individual performance
measures which are reviewed and evaluated
each financial year.
Each executives’ individual performance
measures are specifically designed to ensure
alignment with the group’s strategic plans for
the year.
Remuneration is set competitively to:
Fixed remuneration is based on:
• Recruit the best talent to QuickFee Limited
• Role and responsibility;
to ensure sustainable growth; and
• Retain high performance talent.
• Capability and competencies; and
• Comparable market remuneration.
Performance-based
remuneration
(STIs and LTIs)
QuickFee Limited’s performance pay consists of short- and long-term incentives which are designed to:
• Motivate to achieve financial and non-financial corporate objectives;
• Reward and recognise outstanding performance and create a performance culture; and
• Retain high performance talent through the PROP and the subsequent tenure required for options
and performance rights to vest.
22
ELEmENt
PerforMAnCe MeAsUres
Short-term incentive
(STI) plan, being
cash award
The personal key performance metrics of each
executive relate to conditions that are within the
control of the employee which include but are
not limited to revenue and expense targets,
strategic initiatives and such other conditions
as the group requires.
STIs are cash-based payments;
• Quantum of STI = % of performance relative
to an individual’s key performance metrics.
StRAtEgiC oBjECtivE/
pERFoRmANCE LiNk
Ensures each executive is held accountable for
the outcomes that are under their control.
These outcomes are designed to support
the overall group objectives.
STIs are designed to motivate individuals,
create a high-performance culture, and
increase employee engagement.
Long-term incentive
(LTI) plan, being share
options and
performance rights
Participants must be employed on vesting date
for the options or performance rights to vest.
Ensures a direct link between the LTI
and the creation of shareholder value.
Performance will be tested at the end of each
vesting period.
QuickFee Limited is committed to continue evolving the key performance indicators for executives ensuring meaningful stretch
targets linked to shareholder value creation on which to be assessed.
Non-executivedirectors’remuneration
Each non-executive director has entered into appointment letters with QuickFee Limited, confirming the terms of their
appointment and their roles and responsibilities.
Under the constitution, the board decides the total amount paid to each of the non-executive directors as remuneration for their
services as a director. However, under the ASX Listing Rules, the total amount of fees paid to all directors for their services
(excluding, for these purposes, the salary of any executive director) must not exceed in aggregate in any financial year the amount
fixed by the company in general meeting.
The maximum annual aggregate non-executive directors’ fee pool limit is A$400,000 (inclusive of superannuation), adopted on
IPO of QuickFee Limited on 9 July 2019. Any change to that aggregated annual sum needs to be approved by shareholders.
The aggregate sum does not include any special and additional remuneration for special exertions and additional services
performed by a director as determined appropriate by the board.
Chair and independent non-executive director, Barry Lewin’s annual director fee is A$100,000, effective from his
appointment to the position on 1 May 2019. This fee also covers his role as chair of the audit and risk committee and
as member of the remuneration and nomination committee. Dale Smorgon receives an annual fee of A$65,000 per annum for
his role as a non-executive director, chair of the remuneration and nomination committee, as well as membership of the audit
and risk committee.
Directors may also be reimbursed for expenses properly incurred by them in connection with the affairs of the group, including
travel and other expenses in attending to the group’s affairs. The directors’ fees do not include a commission on, or a percentage
of, profits or income.
If a director renders or is called on to perform extra services or to make any special exertions in connection with the affairs
of the group, the board may arrange for special remuneration to be paid to that director, either in addition to or in substitution
for that director’s remuneration set out above.
QuickFee Limited | Annual Report 2021
23
Directors’ report
continued
Barry Lewin and Dale Smorgon were granted 300,000 options each (QFEAG), approved by shareholders at an extraordinary
general meeting (EGM) of the company on 23 July 2020. These options expire on 23 July 2025 and comprise three tranches
of 100,000 options with an exercise price of A$0.50. T1 options vested on 30 June 2021; T2 and T3 vest on 30 June 2022 and
2023, respectively, contingent on continued employment at each vesting date. As the grant date of 23 July 2020 occurred after
the directors began rendering services in respect of that grant, AASB 2 requires the group to commence recognition of the
share-based payment expense when the services are received.
Consequently, the group commenced amortisation of the share-based payment expense on 6 May 2020 as detailed in the EGM
notice of meeting. The valuation inputs reflect the 23 July 2020 grant date fair value.
There are no contractual redundancy or retirement benefit schemes for non-executive directors, other than statutory
superannuation contributions (where applicable).
Statutory performance indicators
We aim to align our executive remuneration to our strategic and business objectives and the creation of shareholder wealth.
The table below shows measures of the group’s financial performance since inception (as the business has been established
for less than five years as required by the Corporations Act 2001). However, these are not necessarily consistent with the
measures used in determining the variable amounts of remuneration to be awarded to KMPs.
Consequently, there may not always be a direct correlation between the statutory key performance measures and the
variable remuneration awarded.
Loss for the period attributable to owners (A$)
8,546,086
3,826,550
1,154,932
278,973
Basic loss per share (cents)
4.0
2.5
42.6
10.3
fY21
fY20
fY191
fY181, 2
Notes:
1. Due to the conversion of QuickFee AU and QuickFee US shares to QuickFee Limited shares on 9 July 2019, basic loss per share
calculated for FY18 and FY19 is not directly comparable with the results presented for FY20 onwards. For further details, refer
to note 8(a) of the financial statements in the FY20 annual report.
2. FY18 represents a reduced financial period, being 15 February 2018 to 30 June 2018.
The group’s earnings have remained negative since inception due to the group investing in revenue growth and cost containment,
with a significant amount being invested in customer acquisition activities and product development. No dividends have ever been
declared by QuickFee Limited. The group continues to focus on revenue growth with the objective of achieving key commercial
milestones in order to generate further shareholder value.
24
(e) remuneration of key management personnel
The table below details remuneration of key management personnel based on the policies previously discussed for the year ended
30 June 2021.
sHort-terM BenefIts
CAsH
SALARy
And fees
CAsH
BonUs
non-
Mone-
tArY
BenefIts
Post-
EmpLoy-
Ment
Bene-
fIts
LoNg-
terM
Bene-
fIts
sHAre-
BAsed
PAY-
Ments
ANNuAL
LEAvE
sUPer-
AnnU-
AtIon
LoNg
servICe
LEAvE
oPtIons
Perfor-
MAnCe
RightS
totAL
fY21
A$
A$
A$
A$
A$
A$
A$
A$
A$
Non-executive
directors
Barry Lewin
Dale Smorgon
Executive directors
100,000
65,000
–
–
Bruce Coombes
350,000
60,000
Other KMP
–
–
–
–
–
–
–
–
–
94,659
94,659
–
–
194,659
159,659
(10,559)
21,694
4,745
25,590
–
451,470
Eric Lookhoff1
139,492
69,746
8,731
6,867
2,232
James Drummond1
156,231
20,087
4,913
15,450
Richard Formoe1
159,021
–
4,752
(20,610)
–
–
–
–
–
(2,010)
(9,885)
11,269
23,520
261,857
Simon Yeandle1
218,182
45,000
–
11,903
15,778
189
13,042
–
–
–
194,671
133,278
304,094
Total compensation 1,187,926
194,833
18,396
3,051
39,704
4,934
227,324
23,520 1,699,688
Notes:
1. Remuneration for other KMP is shown for the periods during the financial year for which each person was KMP.
Refer to section (b) ‘key management personnel’ above for relevant dates.
QuickFee Limited | Annual Report 2021
25
Directors’ report
continued
The table below details remuneration of key management personnel based on the policies previously discussed for the year ended
30 June 2020.
sHort-terM BenefIts
CAsH
SALARy
And fees
CAsH
BonUs
non-
Mone-
tArY
BenefIts
Post-
EmpLoy-
Ment
Bene-
fIts
LoNg-
terM
Bene-
fIts
sHAre-
BAsed
PAY-
Ments
ANNuAL
LEAvE
sUPer-
AnnU-
AtIon
LoNg
servICe
LEAvE
oPtIons
Perfor-
MAnCe
RightS
totAL
fY20
A$
A$
A$
A$
A$
A$
A$
A$
A$
Non-executive directors
Barry Lewin
Dale Smorgon
100,000
65,000
–
–
Executive directors
Bruce Coombes
350,000
80,000
Other KMP
–
–
–
–
–
–
–
–
–
14,264
14,264
–
–
114,264
79,264
68,392
21,003
9,281
102,961
–
631,637
James Drummond
260,668
44,686
7,802
24,057
Richard Formoe
260,668
103,671
7,354
22,924
–
–
–
–
20,160
146,284
503,657
24,585
–
419,202
Total compensation 1,036,336
228,357
15,156
115,373
21,003
9,281
176,234
146,284 1,748,024
(f) key terms of employment contracts
The tables below detail the key terms of employment contracts of key management personnel for the year ended 30 June 2021.
Name
Bruce Coombes
Title
Details
Managing Director and Chief Executive Officer (until 30 June 2021); Executive Director and Managing Director,
Australia (since 1 July 2021)
Base salary of A$350,000, plus statutory superannuation, reviewed annually by the remuneration and nomination
committee with a three-month termination notice by either party. Contract duration is unspecified.
Name
Eric Lookhoff
Title
President, US (until 30 June 2021); Managing Director and Chief Executive Officer (since 1 July 2021)
Details
Base salary of US$250,000 in FY21 (FY22: US$300,000), reviewed annually by the remuneration and nomination
committee with a four-month termination notice by either party. Contract duration is unspecified.
Name
James Drummond
Title
Chief Operating Officer
Details
Base salary of US$200,000, reviewed annually by the remuneration and nomination committee with immediate
termination by either party. Contract duration is unspecified.
26
Name
Richard Formoe
Title
Chief Revenue Officer
Details
Base salary of US$200,000 until 31 December 2020 (increased to US$225,000 on 1 January 2021), reviewed
annually by the remuneration and nomination committee with immediate termination by either party. Contract
duration is unspecified.
Name
Simon Yeandle
Title
Chief Financial Officer
Details
Base salary of A$300,000 in FY21 (FY22: A$303,030), plus statutory superannuation, reviewed annually by the
remuneration and nomination committee with a three-month termination notice by either party. Contract duration
is unspecified.
(g) Additional statutory information
Relativeproportionsoffixedvsvariableremunerationexpense
The following table shows the relative proportions of remuneration that are linked to performance and those that are fixed,
based on the amounts disclosed as statutory remuneration expense on pages 25 to 26 above:
nAMe
Barry Lewin
Eric Lookhoff
Bruce Coombes
Dale Smorgon
James Drummond
Richard Formoe
Simon Yeandle
fIxed reMUnerAtIon
At rIsk stI
At RiSk Lti
fY21
%
51
60
81
41
91
107
81
fY20
%
88
N/A
71
82
58
69
N/A
fY21
fY20
fY21
%
–
27
13
–
10
–
15
%
–
N/A
13
–
9
25
N/A
%
49
13
6
59
(1)
(7)
4
fY20
%
12
N/A
16
18
33
6
N/A
QuickFee Limited | Annual Report 2021
27
Directors’ report
continued
Performance based remuneration granted and forfeited during the year
The following table shows for each KMP how much of their STI cash bonus was awarded and how much was forfeited
during FY21.
nAMe
fY21
Barry Lewin
Eric Lookhoff2
Bruce Coombes3
Dale Smorgon
James Drummond4
Richard Formoe5
Simon Yeandle6
totAL Sti CASh BoNuS
totAL
oPPortUnItY
AwArded
forfeIted
A$
–
69,746
200,000
–
44,686
93,739
45,000
%
–
100
30
–
100
–
100
%
–
–
70
–
–
100
–
Lti optioNS AND
pERFoRmANCE RightS
vALuE
gRANtED1
vALuE
exerCIsed
A$
A$
171,960
407,100
–
171,960
–
–
179,325
–
–
–
–
–
–
–
Notes:
1. The value at grant date calculated in accordance with AASB 2 Share-based Payment of options granted during the year
as part of remuneration.
2. Bonuses to Eric Lookhoff were granted for meeting operational targets.
3. Bonuses to Bruce Coombes were granted for meeting internal product development and staff hiring milestones.
4. Bonuses to James Drummond were granted for meeting internal operational milestones.
5. Bonuses available to Richard Formoe related to lending targets.
6. Bonuses to Simon Yeandle were granted for meeting financial and operational targets.
28
vEStiNg AND
exerCIse dAte
exPIrY dAte exerCIse PrICe
vALuE pER
oPtIon At
gRANt DAtE
vested
Termsandconditionsofshare-basedpaymentarrangements
Options
gRANt DAtE
2019-01-22 (QFEAB T1)
2020-07-09
2023-07-09
2019-01-22 (QFEAB T2)
2021-07-09
2023-07-09
2019-01-22 (QFEAB T3)
2022-07-09
2023-07-09
2020-03-18 (QFEAD T1)
2020-06-30
2025-06-30
2020-03-18 (QFEAD T2)
Milestone1
2025-06-30
2020-03-18 (QFEAD T3)
Milestone1
2025-06-30
2020-07-23 (QFEAG T1)
2021-06-30
2025-07-23
2020-07-23 (QFEAG T2)
2022-06-30
2025-07-23
2020-07-23 (QFEAG T3)
2023-06-30
2025-07-23
2021-05-26 (not yet issued)
2023-10-08
2026-01-31
2021-05-26 (not yet issued)
2022-04-08
2026-01-31
2021-05-26 (not yet issued)
2023-01-31
2026-01-31
2021-05-26 (not yet issued)
2024-01-31
2026-01-31
Notes:
1. Vesting occurs on satisfaction of internal milestone conditions.
A$
0.300
0.400
0.500
0.500
0.500
0.500
0.500
0.500
0.500
0.500
0.750
0.500
0.750
A$
0.0522
0.0446
0.0391
0.0441
0.0441
0.0441
0.5732
0.5732
0.5732
0.1288
0.1103
0.1288
0.1103
%
100
–
–
100
–
–
100
–
–
–
–
–
–
The number of options over ordinary shares in the company provided as remuneration to key management personnel is shown in
the section titled ‘reconciliation of options and ordinary shares held by KMP’ below. The options carry no dividend or voting rights.
When exercisable, each option is convertible into one ordinary share of QuickFee Limited.
Performance rights
In January 2017, James Drummond agreed to relinquish US$160,000 of salary over the 18 months ended 30 June 2018
in exchange for the grant of performance rights contingent on the IPO of QuickFee Limited. These performance rights vested
on QuickFee US having successfully contracted more than 300 firms (by number) within 24 months following the issue date.
Accordingly, 2,925,685 performance rights were issued on 9 July 2019. On 8 November 2019, these performance rights vested
and 2,925,685 ordinary shares were issued.
The grant of 700,000 performance rights on 26 May 2021 to Eric Lookhoff (President, QuickFee US at grant date)
vest on 31 January 2022, contingent on continued employment at the vesting date.
QuickFee Limited | Annual Report 2021
29
Directors’ report
continued
Reconciliation of options and ordinary shares held by KMP
Options
BALANCE At
tHe stArt of
tHe PerIod
gRANtED AS
reMUner-
AtIon
exerCIsed
otHer
ChANgES1
BALANCE At
end of tHe
PerIod
vested And
ExERCiSABLE
Barry Lewin
Eric Lookhoff
–
–
300,000
2,000,000
Bruce Coombes
3,000,000
–
Dale Smorgon
James Drummond
Richard Formoe
Simon Yeandle
–
300,000
1,000,000
2,000,000
–
–
–
1,500,000
Notes:
1. Reduction comprises forfeited options.
Ordinary shares
–
–
–
–
–
–
–
–
–
–
–
–
300,000
100,000
2,000,000
–
3,000,000
1,000,000
300,000
1,000,000
100,000
333,333
333,333
–
(1,666,667)
333,333
–
1,500,000
Barry Lewin
Eric Lookhoff
Bruce Coombes
Dale Smorgon
James Drummond1
Richard Formoe1
Simon Yeandle
BALANCE At
tHe stArt of
tHe PerIod
gRANtED AS
reMUner-
AtIon
otHer
ChANgES1
BALANCE At
end of tHe
PerIod
968,000
–
23,939,453
23,839,451
2,925,685
6,000
–
–
–
–
–
–
–
–
1,175,000
2,143,000
–
–
1,300,000
25,239,453
–
23,839,451
(2,925,685)
(6,000)
60,000
–
–
60,000
Notes:
1. Balance incorporates: (i) participation in share placements, (ii) on-market acquisitions, and (iii) reductions due to employees
ceasing to be KMP (note: that James Drummond and Richard Formoe retained their shareholdings of 2,925,685 and 6,000,
respectively as at the date of this report; the reduction shown in the table above accounts for them ceasing to be KMP).
30
Other transactions with key management personnel
A former employee of QuickFee AU, also the son of Bruce Coombes, was engaged to provide software development consulting
services to QuickFee AU during FY20 and FY21. This arrangement was undertaken due to the substantial knowledge of
QuickFee’s lending platform held by the former employee that was required for the software development. These services
were based on normal commercial terms and conditions and were at market rates.
Aggregate amounts of other transactions with key management personnel of QuickFee Limited:
Amounts recognised as expense
Consulting services rendered by Bruce Coombes’ son
10,000
26,500
fY21
A$
fY20
A$
Voting of shareholders at last year’s annual general meeting
QuickFee Limited received more than 99% of ‘yes’ votes on its remuneration report for FY20. The company did not receive
any specific feedback at the AGM or throughout the year on its remuneration practices.
— This concludes the remuneration report, which has been audited —
QuickFee Limited | Annual Report 2021
31
Directors’ report
continued
Shares under option, performance rights and deferred shares
(a) Unissuedordinaryshares
Unissued ordinary shares of QuickFee Limited under option at the date of this report are as follows:
exPIrY dAte exerCIse PrICe
2019-07-09 (QFEAB T1 options)
2019-07-09 (QFEAB T2 options)
2019-07-09 (QFEAB T3 options)
2019-07-09 (QFEAB T4 options)
2019-07-09 (QFEAB T5 options)
2019-07-09 (QFEAB T6 options)
2020-03-18 (QFEAD T1 options)
2020-03-18 (QFEAD T2 options)
2020-03-18 (QFEAD T3 options)
2020-07-23 (QFEAG T1 options)1
2020-07-23 (QFEAG T2 options)1
2020-07-23 (QFEAG T3 options)1
2021-05-26 (unissued options)1
2021-05-26 (unissued options)1
2021-05-26 (unissued options)1
2021-05-26 (unissued performance rights)1
2021-05-26 (unissued options)1
2021-05-26 (unissued options)1
2021-07-01 (unissued options)
2021-07-01 (unissued options)
2021-07-01 (unissued options)
2021-07-01 (unissued options)
2021-07-01 (unissued performance rights)
Total
2023-07-09
2023-07-09
2023-07-09
2022-07-09
2022-07-09
2022-07-09
2025-06-30
2025-06-30
2025-06-30
2025-07-23
2025-07-23
2025-07-23
2026-01-31
2026-01-31
2026-01-31
N/A
2026-01-31
2026-01-31
2026-06-30
2026-06-30
2026-06-30
2026-06-30
N/A
(A$)
0.300
0.400
0.500
0.200
0.300
0.400
0.500
0.500
0.500
0.500
0.500
0.500
0.580
0.500
0.750
0.000
0.500
0.750
0.280
0.319
0.344
0.382
0.000
nUMBer
UnIssUed
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
866,666
333,333
333,334
200,000
200,000
200,000
100,000
750,000
750,000
700,000
1,000,000
1,000,000
2,525,037
2,524,989
2,524,989
2,524,985
250,000
22,783,333
No option or performance right holder has any right under the options or performance rights to participate in any other share issue
of the company or any other entity.
Notes:
1.
Included in these were options and performance rights granted as remuneration to the directors and other key management
personnel during the year. Details of options and performance rights granted are disclosed on pages 21 to 30 above.
(b) Sharesissuedontheexerciseofoptions
No ordinary shares of QuickFee Limited were issued during the year ended 30 June 2021 on the exercise of options granted.
32
insurance of officers and indemnities
(a) Insuranceofofficers
During the financial year, QuickFee Limited paid a premium of A$122,996 to insure the directors and secretaries of the company
and its controlled entities. The liabilities insured are legal costs that may be incurred in defending civil or criminal proceedings that
may be brought against the officers in their capacity as officers of entities in the group, and any other payments arising from
liabilities incurred by the officers in connection with such proceedings. This does not include such liabilities that arise from conduct
involving a wilful breach of duty by the officers or the improper use by the officers of their position or of information to gain
advantage for themselves or someone else or to cause detriment to the company. It is not possible to apportion the premium
between amounts relating to the insurance against legal costs and those relating to other liabilities.
(b) Indemnityofauditors
QuickFee Limited has agreed to indemnify their auditors, William Buck Audit (Vic) Pty Ltd, to the extent permitted by law,
against any claim by a third party arising from QuickFee Limited’s breach of their agreement. The indemnity stipulates that
QuickFee Limited will meet the full amount of any such liabilities including a reasonable amount of legal costs.
proceedings on behalf of QuickFee Limited
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf
of QuickFee Limited, or to intervene in any proceedings to which QuickFee Limited is a party, for the purpose of taking
responsibility on behalf of QuickFee Limited for all or part of those proceedings.
No proceedings have been brought or intervened in on behalf of QuickFee Limited with leave of the Court under section 237
of the Corporations Act 2001.
Audit and non-audit services
Details of the amounts paid or payable to the auditor (William Buck Audit (Vic) Pty Ltd) for audit and non-audit services during
the year are disclosed in note 17 of the financial statements.
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 on
page 34.
rounding of amounts
The group is of a kind referred to in ASIC Legislative Instrument 2016/191, relating to the ‘rounding off’ of amounts in the directors’
report. Amounts in the directors’ report have been rounded off in accordance with the instrument to the nearest dollar.
This report is made in accordance with a resolution of directors.
Barry Lewin
Non-Executive Chairman
26 August 2021
QuickFee Limited | Annual Report 2021
33
Auditor’s independence declaration
AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE
CORPORATIONS ACT 2001 TO THE DIRECTORS OF QUICKFEE LIMITED
I declare that, to the best of my knowledge and belief during the year ended 30 June 2021
there have been:
— no contraventions of the auditor independence requirements as set out in the
Corporations Act 2001 in relation to the audit; and
— no contraventions of any applicable code of professional conduct in relation to the
audit.
William Buck Audit (Vic) Pty Ltd
ABN 59 116 151 136
N. S. Benbow
Director
Dated this 26th day of August 2021
34
Corporate governance statement
For the year ended 30 June 2021
QuickFee Limited and the board are committed to achieving and demonstrating the highest standards of corporate governance.
QuickFee Limited has reviewed its corporate governance practices against the Corporate Governance Principles and
Recommendations (4th edition) published by the ASX Corporate Governance Council.
The FY21 corporate governance statement is dated as at 30 June 2021 and reflects the corporate governance practices in place
throughout FY21. The FY21 corporate governance statement was approved by the board on 26 August 2021. A description
of the group’s current corporate governance practices is set out in the group’s corporate governance statement which can be
viewed at https://quickfee.com/investors/corporate-governance/corporate-governance-statement/.
QuickFee Limited | Annual Report 2021
35
QuickFee
ABN 93 624 448 693
Annual financial report – 30 june 2021
Contents
Financial statements
Consolidated statement of profit or loss and other comprehensive income
Consolidated statement of financial position
Consolidated statement of changes in equity
Consolidated statement of cash flows
Notes to the financial statements
37
38
39
40
41
These financial statements are consolidated financial statements for the group consisting of QuickFee Limited and its subsidiaries.
A list of major subsidiaries is included in note 12.
The financial statements are presented in the Australian currency.
QuickFee Limited is a company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place
of business is:
Suite 4.07
10 Century Circuit
Norwest NSW 2153
Its shares are listed on the Australian Securities Exchange.
The financial statements were authorised for issue by the directors on 26 August 2021. The directors have the power to amend
and reissue the financial statements.
36
Consolidated statement of profit or loss and other
comprehensive income
For the year ended 30 June 2021
Interest revenue
Interest expense
Net interest revenue
Revenue from contracts with customers
Cost of sales
Gross profit
Other income
Other losses
General and administrative expenses
Selling and marketing expenses
Operating (loss)/profit before growth expenses
Customer acquisition expenses
Product development expenses
Operating loss
IPO expenses
Net finance costs
Loss before income tax
Income tax benefit/(expense)
Loss for the period
other comprehensive income
Items that may be reclassified to profit or loss:
Exchange differences on translation of foreign operations
Total comprehensive loss for the period
fY21
A$
fY20
A$
4,748,151
5,727,800
(976,085)
(1,634,986)
3,772,066
4,092,814
4,042,171
2,759,781
notes
2
2
3
4(c)
(1,559,065)
(1,150,512)
4(a)
4(b)
4(c)
4(c)
4(c)
4(c)
4(c)
4(d)
6,255,172
5,702,083
72,205
77,941
(89)
(257,723)
(5,751,509)
(4,493,700)
(1,201,020)
(827,997)
(625,241)
200,604
(4,013,236)
(2,478,210)
(3,729,609)
(703,746)
(8,368,086)
(2,981,352)
–
(812,885)
(186,159)
(15,952)
(8,554,245)
(3,810,189)
5
8,159
(16,361)
(8,546,086)
(3,826,550)
(937,299)
34,741
(9,483,385)
(3,791,809)
Cents
Cents
Loss per share for loss attributable to the ordinary equity holders
of the company:
Basic and diluted loss per share
18
(4.0)
(2.5)
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes.
QuickFee Limited | Annual Report 2021
37
Consolidated statement of financial position
As at 30 June 2021
Assets
Current assets
Cash and cash equivalents
Loan receivables
Payment processing receivables
Trade and other receivables
Other current assets
Total current assets
non-current assets
Loan receivables
Property, plant and equipment
Right-of-use assets
Other non-current assets
Total non-current assets
Total assets
LiABiLitiES
Current liabilities
Merchant settlements outstanding
Trade and other payables
Contract liabilities
Borrowings
Lease liabilities
Employee benefit obligations
Total current liabilities
non-current liabilities
Borrowings
Lease liabilities
Employee benefit obligations
Total non-current liabilities
Total liabilities
Net assets
EQuity
Contributed equity
Other reserves
Accumulated losses
Total equity
notes
fY21
A$
fY20
A$
6(a)
6(a)
6(a)
6(b)
6(a)
6(c)
3(b)
6(d)
6(b)
6(d)
6(b)
21,305,963
14,970,488
25,842,632
35,320,527
887,948
313,632
757,597
1,025,192
298,908
313,291
49,107,772
51,928,406
140,485
303,065
669,529
95,242
220,873
203,280
1,036,352
114,350
1,208,321
1,574,855
50,316,093
53,503,261
10,032,343
9,638,297
962,151
106,642
695,297
145,916
13,342,018
25,337,370
340,592
613,732
332,147
360,658
25,397,478
36,509,685
140,849
378,897
6,072
525,818
83,803
722,997
7,556
814,356
25,923,296
37,324,041
24,392,797
16,179,220
7(a)
7(b)
42,597,713
25,155,956
(3,618,375)
(2,936,281)
(14,586,541)
(6,040,455)
24,392,797
16,179,220
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
38
Consolidated statement of changes in equity
For the year ended 30 June 2021
AttRiButABLE to oWNERS oF QuiCkFEE LimitED
ContrIBUted
EQuity
otHer
reserves
ACCumuLAtED
LoSSES
totAL EQuity
notes
A$
A$
A$
A$
2,644,252
43,925
(2,213,905)
474,272
–
–
–
–
(3,826,550)
(3,826,550)
34,741
–
34,741
34,741
(3,826,550)
(3,791,809)
Balance at 1 July 2019
Loss for the period
Other comprehensive income
Total comprehensive income/(loss) for
the period
transactions with owners in their
capacity as owners:
Contributions of equity, net of
transaction costs
Legal acquisition of QuickFee AU
Balance at 1 July 2020
Loss for the period
Other comprehensive loss
Total comprehensive loss for the period
transactions with owners in their
capacity as owners:
Contributions of equity, net of
transaction costs
Share-based payment expenses
7(b), 16(c)
375,288
185,053
22,511,704
(3,014,947)
Balance at 30 June 2020
25,155,956
(2,936,281)
(6,040,455)
16,179,220
7(a)
7(b)
22,136,416
–
–
(3,200,000)
–
–
–
–
22,136,416
(3,200,000)
560,341
19,496,757
AttRiButABLE to oWNERS oF QuiCkFEE LimitED
ContrIBUted
EQuity
otHer
reserves
ACCumuLAtED
LoSSES
totAL EQuity
notes
A$
A$
A$
A$
25,155,956
(2,936,281)
(6,040,455)
16,179,220
–
–
–
–
(8,546,086)
(8,546,086)
(937,299)
–
(937,299)
(937,299)
(8,546,086)
(9,483,385)
Share-based payment expenses
7(b), 16(c)
–
17,441,757
7(a)
17,441,757
–
255,205
255,205
–
–
–
17,441,757
255,205
17,696,962
Balance at 30 June 2021
42,597,713
(3,618,375)
(14,586,541)
24,392,797
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
QuickFee Limited | Annual Report 2021
39
Consolidated statement of cash flows
For the year ended 30 June 2021
notes
fY21
A$
fY20
A$
Cash flows from operating activities
Interest, fees and charges from customers and merchants (inclusive of GST)
8,736,100
8,527,463
Payments to suppliers and employees (inclusive of GST)
Interest paid
Income taxes refunded/(paid)
Net cash (outflow) from operating activities
before changes in assets/liabilities
Payments to merchants to settle loan receivables
(15,731,596)
(8,740,629)
(988,427)
(1,652,565)
5
8,159
(133,891)
(7,975,764)
(1,999,622)
(50,206,235)
(63,351,084)
Receipts from merchants’ customers in respect of loan receivables
60,334,818
61,541,972
Net cash inflow/(outflow) from operating activities
8(a)
2,152,819
(3,808,734)
Cash flows from investing activities
Payments for property, plant and equipment
(173,994)
(226,190)
Interest received from financial assets held for cash management purposes
24
1,319
Net cash (outflow) from investing activities
Cash flows from financing activities
Proceeds from issues of shares
Share issue transaction costs
Legal acquisition of QuickFee AU
(173,970)
(224,871)
7(a)
7(a)
7(b)
18,173,441
23,170,000
(731,684)
(1,150,987)
–
(3,200,000)
Repayment of loan receivables borrowings facility, net of proceeds
(11,446,272)
(260,225)
Loan receivables borrowings facility transaction costs
Repayment of related party borrowings
Principal elements of lease payments
Net cash inflow from financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Effects of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at end of year
(184,661)
–
–
(2,000,000)
(277,987)
(122,568)
5,532,837
16,436,220
7,511,686
12,402,615
14,970,488
2,781,387
(1,176,211)
(213,514)
21,305,963
14,970,488
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
40
Notes to the financial statements
For the year ended 30 June 2021
1 Segment information
(a) Descriptionofsegmentsandprincipal activities
The group has identified its operating segments based on the internal reports that are reviewed and used by the executive
management team, consisting of the Chief Executive Officer, Chief Financial Officer and Managing Director, Australia.
Management examines the group’s performance from both a geographic and product development perspective and has
identified three reportable segments of its business:
• Segments 1 and 2 – payment and lending operations in Australia (Au) and the united States (uS): this part of the
business operates a suite of payment and lending offerings via an online portal to professional, commercial and personal
services providers in Australia and the US. These solutions help customers of service providers (the group’s merchants)
access the advice and services they need, with the choice to pay immediately in full or over time by instalment. The executive
management team monitors the performance in the Australian and US regions separately.
• segment 3 – product development: this part of the business undertakes the research and development of the group’s
software and technology solutions.
(b) Adjusted EBITDA
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) is equal to statutory EBITDA less interest
expense on borrowings that support loan receivables.
Significant items are equity-settled share-based payments, net foreign exchange gains/(losses) and IPO expenses.
QuickFee Limited | Annual Report 2021
41
Notes to the financial statements
continued
1 Segment information (continued)
(b) Adjusted EBITDA(continued)
The table below shows adjusted EBITDA for the year ended 30 June 2021, which reconciles to profit/(loss) for the period:
AU
A$
ProdUCt
DEvELopmENt
uNALLoCAtED
A$
A$
Us
A$
fY21
Interest revenue
Interest expense
3,324,328
1,423,823
(454,600)
(521,485)
Net interest revenue
2,869,728
902,338
Revenue from contracts
with customers
Cost of sales
980,690
3,061,481
(866,294)
(613,759)
Adjusted gross profit
2,984,124
3,350,060
Other income
69,555
2,650
General and administrative
expenses
(1,207,326)
(2,509,121)
Selling and marketing expenses
(431,649)
(769,371)
Adjusted EBITDA before growth
expenses and significant items
1,414,704
74,218
Customer acquisition expenses
(832,797)
(3,180,439)
totAL
A$
4,748,151
(976,085)
3,772,066
4,042,171
(1,480,053)
6,334,184
72,205
–
–
–
–
–
–
–
(1,407,455)
(5,123,902)
–
(1,201,020)
(1,407,455)
81,467
–
–
(4,013,236)
(3,729,609)
–
–
–
–
–
–
–
–
–
–
–
Product development expenses
–
–
(3,729,609)
Adjusted EBITDA before
significant items
Net foreign exchange losses
Share-based payment expenses
581,907
(3,106,221)
(3,729,609)
(1,407,455)
(7,661,378)
(89)
–
–
–
–
–
–
(89)
(255,205)
(255,205)
Adjusted EBITDA
581,818
(3,106,221)
(3,729,609)
(1,662,660)
(7,916,672)
Depreciation and amortisation
(121,841)
(329,573)
Net finance costs
(13,302)
(172,857)
–
–
–
–
(451,414)
(186,159)
Profit/(loss) before income tax
446,675
(3,608,651)
(3,729,609)
(1,662,660)
(8,554,245)
Income tax benefit
8,159
–
–
–
8,159
Profit/(loss) for the period
454,834
(3,608,651)
(3,729,609)
(1,662,660)
(8,546,086)
42
1 Segment information (continued)
(b) Adjusted EBITDA(continued)
The table below shows adjusted EBITDA for the year ended 30 June 2020, which reconciles to profit/(loss) for the period:
AU
A$
ProdUCt
DEvELopmENt
uNALLoCAtED
A$
A$
Us
A$
fY20
Interest revenue
Interest expense
4,468,758
1,259,042
(1,116,923)
(518,063)
Net interest revenue
3,351,835
740,979
Revenue from contracts with
customers
Cost of sales
865,363
1,894,418
(859,117)
(186,298)
Adjusted gross profit
3,358,081
2,449,099
Other income
75,174
2,767
General and administrative
expenses
(1,499,764)
(1,546,403)
Selling and marketing expenses
(361,751)
(466,246)
Adjusted EBITDA before growth
expenses and significant items
1,571,740
439,217
Customer acquisition expenses
(607,022)
(1,871,188)
totAL
A$
5,727,800
(1,634,986)
4,092,814
2,759,781
(1,045,415)
5,807,180
77,941
–
–
–
–
–
–
–
(1,206,214)
(4,252,381)
–
(827,997)
(1,206,214)
804,743
–
–
(2,478,210)
(703,746)
–
–
–
–
–
–
–
–
–
–
–
Product development expenses
–
–
(703,746)
Adjusted EBITDA before
significant items
IPO expenses1
Net foreign exchange gains/
(losses)
964,718
(1,431,971)
(703,746)
(1,206,214)
(2,377,213)
–
–
1,902
(259,625)
–
–
–
(812,885)
(812,885)
–
(257,723)
(49,153)
(49,153)
Share-based payment expenses
–
–
Adjusted EBITDA
966,620
(1,691,596)
(703,746)
(2,068,252)
(3,496,974)
Depreciation and amortisation
(79,367)
(217,896)
Net finance income/(costs)
(6,036)
(10,645)
–
–
–
729
(297,263)
(15,952)
Profit/(loss) before income tax
881,217
(1,920,137)
(703,746)
(2,067,523)
(3,810,189)
Income tax expense
(16,361)
–
–
–
(16,361)
Profit/(loss) for the period
864,856
(1,920,137)
(703,746)
(2,067,523)
(3,826,550)
Notes:
1.
IPO expenses are inclusive of share-based payment expenses contingent on IPO amounting to A$511,188 as disclosed
in notes 4(c) and 16(c).
QuickFee Limited | Annual Report 2021
43
Notes to the financial statements
continued
1 Segment information (continued)
(c) Segmentassetsand liabilities
The table below shows segment assets and liabilities as at 30 June 2021:
fY21
Segment assets
Total assets
Segment liabilities
Total liabilities
AU
A$
ProdUCt
DEvELopmENt
uNALLoCAtED
A$
A$
Us
A$
totAL
A$
19,809,682
8,776,789
19,809,682
8,776,789
16,884,485
8,900,700
16,884,485
8,900,700
–
–
–
–
21,729,622
50,316,093
21,729,622
50,316,093
138,111
25,923,296
138,111
25,923,296
The table below shows segment assets and liabilities as at 30 June 2020:
AU
A$
ProdUCt
DEvELopmENt
uNALLoCAtED
A$
A$
Us
A$
totAL
A$
27,763,210
10,630,969
27,763,210
10,630,969
23,807,057
13,377,757
23,807,057
13,377,757
–
–
–
–
15,109,082
53,503,261
15,109,082
53,503,261
139,227
37,324,041
139,227
37,324,041
fY20
Segment assets
Total assets
Segment liabilities
Total liabilities
2 Net interest revenue
Interest revenue
Loan receivables
Interest expense
Loan receivables – financial institution lenders
Loan receivables – other lenders
Net interest revenue
(a) Accounting policies
(i) Interest revenue
fY21
A$
fY20
A$
4,748,151
5,727,800
(976,085)
(1,557,388)
–
(77,598)
(976,085)
(1,634,986)
3,772,066
4,092,814
Interest revenue from loan receivables relate to the QuickFee Financing and QuickFee Instalments products. Interest revenue
is recognised over the life of the loans granted by the group to its customers over the period loans remain outstanding. The group
recognises this interest revenue using the effective interest rate method (in accordance with AASB 9 Financial Instruments), based
on estimated future cash receipts over the expected life of the financial asset. In making their judgement of estimated future cash
flows and expected life of the loan receivables balance, management have considered historical results, taking into consideration
the type of customer, the type of transaction and specifics of each arrangement and contract.
44
3 Revenue from contracts with customers
(a) Disaggregationofrevenuefromcontractswith customers
The group derives revenue from the transfer of services over time and at a point in time in the following major streams:
fY21
Timing of revenue recognition
At a point in time
Over time
fY20
Timing of revenue recognition
At a point in time
Over time
AppLiCAtioN
fee revenUe
MerCHAnt fee
revenUe
pLAtFoRm FEE
revenUe
A$
A$
A$
totAL
A$
–
2,965,697
47,959
3,013,656
356,586
–
671,929
1,028,515
356,586
2,965,697
719,888
4,042,171
–
1,892,250
107,670
1,999,920
190,976
–
568,885
759,861
190,976
1,892,250
676,555
2,759,781
(b) Liabilitiesrelatedtocontractswith customers
Contract liabilities – deferred revenue
Total current contract liabilities
fY21
A$
106,642
106,642
fY20
A$
145,916
145,916
(i) Revenuerecognisedinrelationtocontract liabilities
The following table shows how much of the revenue recognised in the current reporting period relates to carried-forward contract
liabilities and how much relates to performance obligations that were satisfied in a prior period.
Revenue recognised that was included in the contract liability balance at the beginning
of the period
Deferred revenue
145,916
150,773
fY21
A$
fY20
A$
QuickFee Limited | Annual Report 2021
45
Notes to the financial statements
continued
3 Revenue from contracts with customers (continued)
(c) Accounting policies
(i) Applicationfee revenue
Revenue from application fees relate to the QuickFee Financing product. Application fees are recognised over the life of the loans
granted by the group to its customers as the performance obligation is satisfied over the period a loan remains outstanding.
(ii) Merchantfee revenue
Revenue from merchant fees relate to various product offerings, including:
• QuickFee Financing: instalment deferral fees, instalment dishonour fees and credit card processing fees on instalments;
• QuickFee Instalments: credit card processing fees on instalments; and
• QuickFee PayNow: bank transfer (ACH/EFT) and credit card processing fees on pay in full transactions.
Merchant fees are recognised at a point in time when the transaction is performed and there are no unfulfilled service obligations
that will restrict the entitlement to receive the consideration.
(iii) Platformfee revenue
Revenue from platform fees relate to QuickFee’s payment portal and is split between joining/set up fees and recurring monthly
subscription fees for merchants. Joining/set up fee revenue is recognised at a point in time once the single performance obligation
of establishing the customer (merchant) onto the platform is satisfied. Recurring monthly subscription fee revenue is recognised
on a straight-line basis over the subscription term.
4 other income and expense items
(a) Other income
Government grants
Other
(b) Otherlosses
Net foreign exchange losses
46
fY21
A$
64,407
7,798
72,205
fY20
A$
62,500
15,441
77,941
fY21
A$
(89)
fY20
A$
(257,723)
4 other income and expense items (continued)
(c) Breakdownofexpensesby nature
Cost of sales
Amortisation of borrowing costs
Employee benefits1
Other
General and administrative expenses
Accounting, legal and professional fees
Depreciation
Employee benefits1
Net impairment losses on loan receivables
Recruitment
Share-based payment expenses (non-cash)
16(c)
Other
Selling and marketing expenses
Employee benefits1
Other
Customer acquisition expenses
Employee benefits1
Other
Product development expenses
Employee benefits1
Other
IPO expenses
Share-based payment expenses contingent on IPO (non-cash)
16(c)
Other IPO expenses
notes
fY21
A$
fY20
A$
79,012
327,013
1,153,040
105,097
129,234
916,181
1,559,065
1,150,512
760,353
372,402
497,145
190,746
2,661,937
1,774,641
131,491
641,489
255,205
928,632
570,818
323,116
49,153
1,088,081
5,751,509
4,493,700
1,155,482
45,538
1,201,020
681,223
146,774
827,997
3,046,716
1,920,341
966,520
557,869
4,013,236
2,478,210
2,590,525
1,139,084
3,729,609
–
–
–
199,768
503,978
703,746
511,188
301,697
812,885
Notes:
1. Employee benefits from each functional expense category includes aggregate superannuation/401k of A$245,345
(2020: A$124,772).
QuickFee Limited | Annual Report 2021
47
fY21
A$
24
fY20
A$
1,627
(36,191)
(16,985)
(149,982)
(10)
–
(594)
(186,159)
(15,952)
fY21
A$
–
(8,159)
(8,159)
–
–
(8,159)
fY20
A$
–
(23,155)
(23,155)
39,516
39,516
16,361
Notes to the financial statements
continued
4 other income and expense items (continued)
(d) Netfinancecosts
Finance income
Finance costs – lease liabilities
Finance costs – borrowings facility termination costs
Finance costs – other
5 Income tax expense
(a) Incometax expense
Current tax
Current tax on profits for the year
Adjustments for current tax of prior periods
Total current tax (benefit)/expense
Deferred income tax
Decrease/(increase) in deferred tax assets
Total deferred tax expense
Income tax (benefit)/expense
48
5 Income tax expense (continued)
(b) Numericalreconciliationofincometaxexpensetoprimafacietaxpayable
Loss before income tax
Tax at the Australian tax rate of 26% (2020: 27.5%)
Tax effect of amounts which are not deductible (taxable) in calculating taxable income:
Blackhole expenditure (Section 40-880, ITAA 1997)
Employee leave obligations
Expected credit losses
Government grants
IPO
Prepayments
Share-based payments
Unrealised currency (gains)/losses
Other
Subtotal
fY21
A$
fY20
restAted
A$
(8,554,245)
(3,810,189)
(2,224,103)
(1,047,802)
(113,587)
72,752
(87,824)
(16,746)
–
(39,698)
66,353
36
(10,402)
(79,897)
61,414
159,745
(17,188)
82,967
(39,737)
154,094
76,949
14,676
(129,116)
413,023
Difference in overseas tax rates
Adjustments for current tax in respect of prior periods
(145,776)
(8,159)
Tax losses and other timing differences for which no deferred tax asset is recognised
2,498,995
Income tax (benefit)/expense
(8,159)
(49,768)
(23,155)
724,063
16,361
The numerical reconciliation of income tax expense to prima facie tax payable for the year ended 30 June 2020 has been restated
to reflect the income tax returns lodged for the same period.
(c) Taxlosses
fY21
A$
fY20
restAted
A$
Unused Australian tax losses for which no deferred tax asset has been recognised
7,114,210
1,714,806
Potential tax benefit at 26% (2020: 27.5%)
1,849,695
471,572
Unused United States tax losses for which no deferred tax asset has been recognised
5,922,322
2,467,201
Potential tax benefit at 29.84% (2020: 29.84%)
Total potential tax benefit
1,767,221
736,213
3,616,916
1,207,785
Tax losses for the year ended 30 June 2020 have been restated to reflect the income tax returns lodged for the same period.
The group does not recognise deferred tax assets for carried forward tax losses attributed to the QuickFee AU and QuickFee US
consolidated tax groups as at 30 June 2021 and 30 June 2020. Deferred tax assets are recognised for deductible temporary
differences only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.
QuickFee Limited | Annual Report 2021
49
Notes to the financial statements
continued
6 Financial assets and financial liabilities
(a) Loanreceivables,paymentprocessingreceivablesandmerchantsettlements outstanding
fY21
non-
CUrrent
CUrrent
totAL
CUrrent
fY20
non-
CUrrent
notes
A$
A$
A$
A$
A$
totAL
A$
Gross loan receivables
6(a)(i), (ii) 26,067,912
140,485 26,208,397 35,893,461
220,873 36,114,334
Expected credit losses
10(b)
(225,280)
–
(225,280)
(572,934)
–
(572,934)
Loan receivables
Payment processing
receivables
Merchant settlements
outstanding
25,842,632
140,485 25,983,117 35,320,527
220,873 35,541,400
6(a)(iii), (iv)
887,948
–
887,948
1,025,192
6(a)(v), (vi) 10,032,343
– 10,032,343
9,638,297
–
–
1,025,192
9,638,297
(i) Classificationofgrossloan receivables
Gross loan receivables are amounts due from customers of merchants for payment plans (loans) entered into in the ordinary course
of business from the QuickFee Financing and QuickFee Instalments products.
(ii) Recognitionandmeasurementofgrossloan receivables
Gross loan receivables are non-derivative financial assets, with fixed and determinable payments that are not quoted in an active
market. Loan receivables are initially recognised at fair value. The group holds the loan receivables with the objective of collecting
the contractual cash flows and therefore measures them subsequently at amortised cost using the effective interest method.
Loan receivables are due for settlement at various times, typically up to 12 months, in line with the terms of their contracts.
(iii) Classificationofpaymentprocessing receivables
Payment processing receivables are amounts due from customers of merchants for pay in full transactions made in the ordinary
course of business through the QuickFee payment portal from the QuickFee PayNow product.
(iv) Recognitionandmeasurementofpaymentprocessing receivables
Payment processing receivables are non-derivative financial assets, with fixed and determinable payments that are not quoted
in an active market. The carrying amounts of payment processing receivables are considered to be the same as their fair values,
due to their short-term nature. Transactions awaiting settlement to QuickFee turnover quickly, typically within 1–3 days, in line
with bank processing timeframes.
(v) Classificationofmerchantsettlements outstanding
Merchant settlements outstanding represent the following:
• payment plans (loans) approved but yet to be settled by the group to merchants, usually due to the first instalment having
not been received as cleared funds; and
• pay in full transactions yet to be settled by the group to merchants.
(vi) Recognitionandmeasurementofmerchantsettlements outstanding
Merchant settlements outstanding are non-derivative financial liabilities, with fixed and determinable payments that are
not quoted in an active market. The carrying amounts of merchant settlements outstanding are considered to be the same
as their fair values, due to their short-term nature. Transactions awaiting settlement turnover quickly, typically within 1–7 days.
50
6 Financial assets and financial liabilities (continued)
(a) Loanreceivables,paymentprocessingreceivablesandmerchantsettlements outstanding(continued)
(vii) Impairmentandrisk exposure
Information about the impairment of loan receivables and the group’s exposure to credit risk, foreign currency risk and interest rate
risk can be found in note 10.
(b) Leases
This note provides information for leases where the group is a lessee.
(i) Amountsrecognisedinthestatementoffinancial position
Right-of-use assets
Buildings
Opening net book amount
Exchange differences
Additions
Depreciation charge
Lease liabilities
Current
Non-current
(ii) Amountsrecognisedinthestatementofprofitorlossandothercomprehensive income
Depreciation charge on right-of-use assets
Buildings
Lease liabilities
Interest expense (included in net finance costs)
Expense relating to short-term leases (included in general and administrative expenses)
The total cash outflow for leases in FY21 was A$314,148 (FY20: A$139,553).
fY21
A$
fY20
A$
1,036,352
(57,211)
–
2,360
–
1,179,769
(309,612)
(145,777)
669,529
1,036,352
340,592
378,897
332,147
722,997
719,489
1,055,144
fY21
A$
fY20
A$
309,612
309,612
36,191
–
36,191
145,777
145,777
16,985
161,055
178,040
QuickFee Limited | Annual Report 2021
51
Notes to the financial statements
continued
6 Financial assets and financial liabilities (continued)
(b) Leases(continued)
(iii) Thegroup’sleasingactivitiesandhowtheseareaccounted for
The group leases various office suites. Rental contracts are typically made for fixed periods of three to five years.
Contracts may contain both lease and non-lease components. The group allocates the consideration in the contract to the lease
and non-lease components based on their relative stand-alone prices.
Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease
agreements do not impose any covenants other than the security interests in the leased assets that are held by the lessor.
Leased assets may not be used as security for borrowing purposes.
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present
value of the following lease payments:
• fixed payments (including in-substance fixed payments), less any lease incentives receivable;
• variable lease payments that are based on an index or a rate, initially measured using the index or rate as at the
commencement date;
• amounts expected to be payable by the lessee under residual value guarantees;
• the exercise price of a purchase option if the lessee is reasonably certain to exercise that option; and
• payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option.
Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which
is the case for leases in the group, the lessee’s incremental borrowing rate is used, being the rate that the individual lessee would
have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic
environment with similar terms, security and conditions.
To determine the incremental borrowing rate, the group:
• where possible, uses recent third-party financing received by the individual lessee as a starting point, adjusted to reflect
changes in financing conditions since third party financing was received;
• uses a build-up approach that starts with a risk-free interest rate adjusted for credit risk for leases held by QuickFee Limited; and
• makes adjustments specific to the lease, e.g. term, country, currency and security.
If a readily observable amortising loan rate is available to the individual lessee (through recent financing or market data) which has
a similar payment profile to the lease, then the group entities use that rate as a starting point to determine the incremental
borrowing rate.
The group is exposed to potential future increases in variable lease payments based on an index or rate, which are not included in
the lease liability until they take effect. When adjustments to lease payments based on an index or rate take effect, the lease liability
is reassessed and adjusted against the right-of-use asset.
Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period
so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.
Right-of-use assets are measured at cost comprising the following:
• the amount of the initial measurement of lease liability;
• any lease payments made at or before the commencement date less any lease incentives received;
• any initial direct costs; and
• restoration costs.
Right-of-use assets are generally depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis.
If the group is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying asset’s
useful life.
52
6 Financial assets and financial liabilities (continued)
(b) Leases(continued)
(iii) Thegroup’sleasingactivitiesandhowtheseareaccounted for(continued)
Payments associated with short-term leases and leases of low-value assets are recognised on a straight-line basis as an expense
in profit or loss. Short-term leases are leases with a lease term of 12 months or less.
(c) Tradeandother payables
fY21
non-
CUrrent
CUrrent
totAL
CUrrent
fY20
non-
CUrrent
A$
A$
A$
A$
A$
283,802
498,846
179,503
962,151
–
–
–
–
283,802
266,019
498,846
404,333
179,503
24,945
962,151
695,297
–
–
–
–
totAL
A$
266,019
404,333
24,945
695,297
Trade payables
Accrued expenses
Other payables
Total borrowings
Trade payables are unsecured and are usually paid within 30 days of recognition.
The carrying amounts of trade and other payables are considered to be the same as their fair values, due to their short-term nature.
(d) Borrowings
Secured
Global Credit
Investments
fY21
non-
CUrrent
CUrrent
totAL
CUrrent
fY20
non-
CUrrent
notes
A$
A$
A$
A$
A$
totAL
A$
6(d)(i)
–
–
–
6,192,627
–
6,192,627
Lease Collateral Pty Ltd
6(d)(ii)
13,342,018
140,849
13,482,867
19,192,237
83,803
19,276,040
Total secured
borrowings
Capitalised
borrowing costs
Unamortised
borrowing costs
Total capitalised
borrowing costs
Total borrowings
13,342,018
140,849
13,482,867
25,384,864
83,803
25,468,667
–
–
–
–
–
–
(47,494)
(47,494)
–
–
(47,494)
(47,494)
13,342,018
140,849
13,482,867
25,337,370
83,803
25,421,173
QuickFee Limited | Annual Report 2021
53
Notes to the financial statements
continued
6 Financial assets and financial liabilities (continued)
(d) Borrowings(continued)
(i) GlobalCredit Investments
The Global Credit Investments loan was originally entered into on 1 September 2017 and matured on 31 August 2019, with the
group negotiating a roll over until 31 August 2020. On 26 June 2020, the group renegotiated the facility for a further 12 months.
The group terminated the facility on 26 June 2021 on repayment of the outstanding balance. During the drawdown period,
the loan was secured over certain identified loan receivables of QuickFee US. The loan attracted variable interest paid monthly
in arrears, 9.0% per annum for accounting firms; legal firms loans accrued interest at 9.5% per annum. The facility limit as at
30 June 2021 was nil (30 June 2020: US$10,000,000).
(ii) LeaseCollateralPty Ltd
The Lease Collateral Pty Ltd loan was originally entered into on 3 November 2015. As at 30 June 2021, the facility limit was
A$25,000,000 (30 June 2020: A$25,000,000), secured over certain identified loan receivables of QuickFee AU. As at 30 June
2021, the loan attracted interest at 4.1% per annum plus the base rate as published by the Reserve Bank of Australia (30 June
2020: 4.1%). In addition, a line fee of 1.25% per annum applies, along with a scalable surcharge up to 1.0% per annum for
drawdowns over A$20,000,000 derived from the average reference bank credit default swap.
The loan matures 12 months after the date that a termination notice is sent by either party. As at the date of this report,
a termination notice had not been provided by either party.
(iii) Fair values
The fair values of borrowings are not materially different to their carrying amounts, since the interest payable on those borrowings
is either close to current market rates or the borrowings are of a short-term nature.
(iv) Risk exposures
Details of the group’s exposure to risks arising from current and non-current borrowings are set out in note 10.
54
7 equity
(a) Contributed equity
Ordinary shares
Fully paid
(i) Movementsinordinaryshares:
DEtAiLS
Balance at 1 July 2019
fY21
fY20
notes
sHAres
sHAres
fY21
A$
fY20
A$
7(a)(i)
222,201,238
188,264,287
42,597,713
25,155,956
222,201,238
188,264,287
42,597,713
25,155,956
2019-07-09: Conversion of existing QuickFee AU and QuickFee US class shares
to QuickFee
Limited class shares pursuant to IPO1
2019-07-09: Issue at A$0.10 on conversion of QuickFee Limited seed loan agreements
2019-07-09: Issue at A$0.20 on conversion of QuickFee US shareholder loan
agreements
2019-07-09: Issue at A$0.20 pursuant to IPO
2019-07-09: Issue at A$0.20 as consideration to broker on IPO2
2019-09-10: Issue at A$nil on vesting of QuickFee US deferred consideration shares3, 4
2019-11-08: Issue at A$nil on vesting of QuickFee US deferred consideration shares3, 5
2019-11-08: Issue at A$nil on vesting of performance rights5, 6
2019-11-08: Transfer from ‘share-based payment reserve’ on vesting of
performance rights6
2020-05-15: Issue at A$0.21 pursuant to placement
nUMBer
oF ShARES
totAL
A$
2,729,167
2,644,252
47,520,834
16,000,000
–
1,600,000
6,000,000
1,200,000
67,500,000
13,500,000
800,000
3,049,543
3,049,543
5,851,370
160,000
–
–
–
–
292,568
32,714,286
6,870,000
2020-05-15: Issue at A$nil on vesting of QuickFee US deferred consideration shares3, 7
3,049,544
–
Less: Transaction costs arising on share issues8
Balance at 30 June 2020
–
(1,110,864)
188,264,287
25,155,956
2020-07-30: Issue at A$0.21 pursuant to directors’ participation in May 2020 placement
3,000,000
630,000
2020-09-25: Issue at A$0.58 pursuant to September 2020 placement
25,862,068
14,999,999
2020-10-16: Issue at A$0.50 pursuant to October 2020 share purchase plan
4,999,883
2,499,942
2021-01-04: Issue at A$0.58 pursuant to directors’ participation in September 2020
placement
Less: Transaction costs arising on share issues
Balance at 30 June 2021
75,000
–
43,500
(731,684)
222,201,238
42,597,713
QuickFee Limited | Annual Report 2021
55
Notes to the financial statements
continued
7 equity (continued)
(a) Contributed equity(continued)
(i) Movementsinordinaryshares:(continued)
Notes:
1. Conversion of QuickFee AU and QuickFee US shares to QuickFee Limited shares incorporates the 24,000,000 ordinary shares
issued as partial consideration for the acquisition of QuickFee AU and the 26,250,000 ordinary shares issued as full consideration
(excluding deferred consideration shares) for the acquisition of QuickFee US on the 9 July 2019 IPO (i.e. 50,250,000 shares in
total). This 50,250,000 shares comprises the following line items in ‘movements in ordinary shares’ above: (a) 2,729,167 shares
as at 1 July 2019, less the original single share on incorporation of QuickFee Limited on 15 February 2018; and (c) the conversion
figure of 47,250,834.
2. The accounting entry to take up the broker shares valued at A$160,000 offset between ‘transaction costs arising on share
issues’ (A$77,280) and ‘share-based payment expenses’ (A$82,720). This split was prorated according to the ratio of new
shares (relative to the overall capital structure) issued on IPO.
3. No monetary value was ascribed to the deferred consideration shares issued to pre-IPO shareholders of QuickFee US
on fulfilment of each performance milestone. The deferred consideration shares were accounted for as part of the common
control transaction on 15 February 2018. As such, no further amount is recognised as contributed equity.
4. Performance milestone comprised the aggregate value of loans made by QuickFee US from the commencement of QuickFee
US’s operations exceeding US$15,000,000 within 24 months.
5. Performance milestone comprised QuickFee US having successfully contracted more than 300 firms (by number) within
24 months of IPO.
6. Refer to note 7(b) and 16(b) for further details.
7. Performance milestone comprised QuickFee US achieving an aggregate value of currently held loans in excess of
US$6,000,000 within 24 months.
8. Transaction costs recognised in FY20 were those contingent on the IPO occurring only; those costs that would have occurred
regardless of the IPO proceeding were recognised in FY19. Such costs were prorated between ‘IPO expenses’ in profit or loss
and as a deduction to equity according to the ratio of new shares (relative to the overall capital structure) issued on IPO.
Transaction costs recognised on IPO comprise those arising contingent on the successful completion of the IPO, principally
broker underwriting and management fees.
(ii) Ordinary shares
Ordinary shares entitle the holder to participate in dividends, and to share in the proceeds of winding up the company in proportion
to the number of and amounts paid on the shares held.
On a show of hands every holder of ordinary shares present at a meeting in person or by proxy, is entitled to one vote, and upon
a poll each share is entitled to one vote.
Ordinary shares have no par value and the company does not have a limited amount of authorised capital.
56
7 equity (continued)
(b) Other reserves
The following table shows a breakdown of the statement of financial position line item ‘other reserves’ and the movements in these
reserves during the year. A description of the nature and purpose of each reserve is provided below the table.
CoMMon
CoNtRoL
reserve
sHAre-BAsed
PAYMent
reserve
FoREigN
CUrrenCY
tRANSLAtioN
reserve
totAL othER
reserves
Balance at 1 July 2019
notes
A$
–
Legal acquisition of QuickFee AU
(3,200,000)
A$
–
–
–
A$
A$
43,925
43,925
–
(3,200,000)
34,741
34,741
185,053
292,568
(292,568)
–
–
–
185,053
292,568
(292,568)
–
–
–
–
(3,200,000)
185,053
78,666
(2,936,281)
–
–
–
–
(937,299)
(937,299)
231,685
23,520
–
–
231,685
23,520
(3,200,000)
440,258
(858,633)
(3,618,375)
Currency translation differences
Transactions with owners in their
capacity as owners:
Options expensed
Performance rights expensed
Performance rights vested
As at 30 June 2020
Currency translation differences
Transactions with owners in their
capacity as owners:
Options expensed
Performance rights expensed
As at 30 June 2021
(i) Natureandpurposeofother reserves
Common control
16(c)
7(a)(i),
16(c)
7(a)(i)
16(c)
16(c)
The common control reserve recognises differences arising from the 15 February 2018 common control business combination
between QuickFee Limited and QuickFee AU under the ‘pooling method’. The 9 July 2019 legal acquisition was contingent on
the IPO of QuickFee Limited and included cash settlement of A$3,200,000 as consideration. This payment was made equally
and proportionately to all shareholders of QuickFee AU.
Share-based payments
The share-based payment reserve records items recognised as expenses on valuation of share options and performance rights
issued to key management personnel, other employees and eligible contractors.
Foreign currency translation
Exchange differences arising on translation of foreign controlled entities are recognised in other comprehensive income and
accumulated in a separate reserve within equity. The cumulative amount is reclassified to profit or loss when the net investment
is disposed of.
QuickFee Limited | Annual Report 2021
57
Notes to the financial statements
continued
8 Cash flow information
(a) Reconciliationoflossafterincometaxtonetcashoutflowfromoperatingactivities
Loss for the period
Adjustments for:
Borrowings facility termination costs
Depreciation and amortisation
Expected credit losses
Interest receivable from financial assets held for cash management purposes
Share-based payments
Net unrealised foreign exchange losses
Change in operating assets and liabilities:
notes
fY21
A$
fY20
A$
(8,546,086)
(3,826,550)
4(d)
4(c)
4(d)
16(c)
149,982
451,414
(333,529)
–
295,843
562,934
(24)
(1,627)
255,205
138
560,341
257,723
Movement in loan and payment processing receivables
9,349,662
(6,939,127)
Movement in trade and other receivables
Movement in deferred tax assets
Movement in other operating assets
Movement in merchant settlements outstanding
Movement in trade and other payables
Movement in contract liabilities
Movement in employee benefit obligations
Movement in income taxes payable
(33,993)
(197,925)
–
(435,139)
39,516
(99,343)
924,837
5,280,788
293,022
206,457
(183,663)
(4,857)
260,993
214,139
–
(157,046)
Net cash inflow/(outflow) from operating activities
2,152,819
(3,808,734)
(b) Non-cashinvestingandfinancing activities
Non-cash investing and financing activities disclosed in other notes are:
• acquisition of right-of-use assets – note 6(b); and
• options and performance rights issued to employees under the ‘Performance Rights and Options Plan’ for no cash
consideration – note 16(a).
58
9 Critical estimates and judgements
The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual
results. Management also needs to exercise judgement in applying the group’s accounting policies.
This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items which are more
likely to be materially adjusted due to estimates and assumptions turning out to be wrong. Detailed information about each
of these estimates and judgements is included in other notes together with information about the basis of calculation for each
affected line item in the financial statements.
The areas involving significant estimates or judgements are:
• non-recognition of deferred tax asset for carry-forward tax losses – note 5(c);
• impairment of loan receivables – note 10(b).
Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including
expectations of future events that may have a financial impact on the entity and that are believed to be reasonable under
the circumstances.
10 Financial risk management
This note explains the group’s exposure to financial risks and how these risks could affect the group’s future financial performance.
The group’s risk management is predominantly controlled by the board. The board monitors the group’s financial risk management
policies and exposures and approves substantial financial transactions. It also reviews the effectiveness of internal controls relating
to market risk, credit risk and liquidity risk.
(a) Market risk
(i) Foreignexchange risk
The group undertakes certain transactions denominated in foreign currency and is exposed to foreign currency risk through foreign
exchange rate fluctuations. The group is primarily exposed to changes in the United States dollar against the Australian dollar
on translation into the group’s presentation currency of controlled entity’s financial information. However, there are no material
financial assets and liabilities denominated in currencies other than the functional currency of each entity. Therefore, management
has concluded that market risk from foreign exchange fluctuation is not material.
(ii) Interestrate risk
The group is not exposed to interest rate risk on the vast majority of its financial instruments as loans and borrowings and interest
received as income from customers are set at fixed interest rates. The exception to this is the borrowing with Lease Collateral Pty
Ltd which has a variable component being the base rate stipulated by the Reserve Bank of Australia (RBA). If the RBA rate moved
by 0.25% it would increase/decrease the interest expense by A$33,707 (2020: A$48,190).
(b) Credit risk
Exposure to credit risk relating to financial assets arises from the potential non-performance by counterparties of contract
obligations that could lead to a financial loss to the group.
(i) Risk management
The group’s counterparties comprise merchants signed up to the QuickFee platform and these merchants’ customers that transact
through this platform.
QuickFee Limited | Annual Report 2021
59
Notes to the financial statements
continued
10 Financial risk management (continued)
(b) Credit risk(continued)
(i) Risk management(continued)
For the QuickFee Financing product, the merchants are primarily professional service firms that are generally long established
businesses. Credit risk is managed through the maintenance of procedures, ensuring to the extent possible that merchants and
their customers (the borrowers) that are counterparties to loans are of sound credit worthiness. Both QuickFee AU and QuickFee
US apply the group’s credit policy prior to granting any loans in order to ensure sound and prudent lending practices are applied.
The policy sets out:
• limits for the value of loans granted to borrowers with respect to a merchant’s annual revenue to limit risks related to
a merchant’s ability to repay loans on behalf of their customer, if required;
• limits for the value of loans guaranteed to any one particular merchant to limit concentration of its loan book;
• annual reviews undertaken in respect of all customer loans and merchants; and
• undertaking credit checks on borrowers above thresholds prior to granting loans.
To further protect the group from credit risk, merchants usually grant to QuickFee Limited the irrevocable right to require
the merchant to purchase a QuickFee Financing loan for the outstanding amount in the event that a customer defaults on
an instalment payment.
Accordingly, the group is not exposed to any significant credit risk on QuickFee Financing loan receivables due to the fact that
the group usually has recourse against its merchants to recover amounts in respect of unpaid invoices used as collateral for any
loan granted. This recourse from merchants is typically backed by a direct debit authority for bank accounts of each merchant.
Historically the risk of default has been low due to the underlying merchants being low risk and the absence of significant risk
concentration. The credit insurance policy held by QuickFee AU further mitigates against the risk of default on QuickFee Financing
‘Fee Funding’ loan receivables.
For the loan receivables relating to the QuickFee Instalments product, the group’s primary credit risk mitigation strategies
comprise:
• credit card pre-authorisation for the full invoice amount against which each instalment is captured from;
• a direct debit authority held for the bank account of each merchant to protect against chargeback risk;
• merchant eligibility criteria that excludes higher risk businesses;
• a comprehensive refund and chargeback policy that requires merchants to repay QuickFee in the event of a refund
or chargeback; and
• individual transaction size limits.
In terms of trade receivables on merchant fee revenue collected in arrears, the group has direct debit authority for bank accounts
of each merchant using the pay in full (PayNow) portal, which reduces risk.
For both loan and trade receivables, the group can divert inbound funds for pay in full transactions processed via the payments
portal to cover any amounts owing by a given merchant to the group, providing an additional level of recourse.
Risk is also minimised through investing surplus funds in financial institutions that maintain a high credit rating.
(ii) Security
For some QuickFee Financing loan receivables, particularly for professional service firms with fewer than three partners,
the group obtains security in the form of personal guarantees, which can be called upon if the borrower is in default under
the terms of the agreement.
60
10 Financial risk management (continued)
(b) Credit risk(continued)
(iii) Impairmentoffinancial assets
The group has two types of financial assets that are subject to the expected credit loss model:
• loan receivables; and
• trade receivables for merchant fee revenue collected in arrears.
While cash and cash equivalents are also subject to the impairment requirements of AASB 9, the identified impairment loss
was immaterial.
Loan receivables
The group applies the AASB 9 general approach to measuring expected credit losses (ECLs) on loan receivables, which are
measured at amortised cost. ECLs are based on the difference between the contractual cash flows due in accordance with
the QuickFee terms and all the cash flows that the group expects to receive. The group uses ageing of loan receivables as the
basis for ECL measurement.
At each reporting date, the group assesses impairment risk on initial recognition of the loan receivable and movements in the
ageing of outstanding loan receivables to estimate the ECL.
Under this impairment approach, AASB 9 requires the group to classify loan receivables into three stages, which measure
the ECL based on migration between the stages. The group has defined these stages as follows:
StAgE
AgEiNg
MeAsUreMent BAsIs
Stage 1
Not yet due While these loan receivables are not yet due, the group collectively assesses ECLs on loan
Stage 2
1 to 60 days
past due
receivables where there has not been a significant increase in credit risk since initial recognition
and that were not credit impaired upon origination. For these loan receivables, the group
recognises as a collective provision the portion of the lifetime ECL associated with the probability
of default events occurring within the next 12 months. The group does not conduct extensive
individual assessment of exposures in stage 1 as there is generally no evidence of one or more
events occurring that would have a detrimental impact on estimated future cash flows.
Although there is usually no objective evidence of impairment, when a loan receivable has not
been paid by the due date, it is an indication that credit risk has increased. As a result, the loss
allowance for that loan receivable is measured at an amount equal to the lifetime ECL for increased
credit risk. A lifetime ECL is the expected credit losses that result from all possible default events
over the expected life of the loan receivable. Like stage 1, the group does not conduct extensive
individual assessment on stage 2 loan receivables as the increase in credit risk is not, of itself,
an event that could have a detrimental impact on future cash flows.
Stage 3
Greater
than 60 days
past due
When the loan receivable is greater than 60 days past due, there is considered to be objective
evidence of impairment. The group identifies, both collectively and individually, ECLs on those
exposures that are assessed as credit impaired based on whether one or more events that have
a detrimental impact on the estimated future cash flows of that loan receivable have occurred.
The expected loss rates are based on the payment profiles of loans over a period of 48 months before 30 June 2021 and the
corresponding historical credit losses experienced within this period. The historical loss rates are adjusted to reflect current
and forward looking information on macroeconomic factors, primarily the COVID-19 pandemic, affecting the ability of the
customers to settle the receivables.
QuickFee Limited | Annual Report 2021
61
Notes to the financial statements
continued
10 Financial risk management (continued)
(b) Credit risk(continued)
(iii) Impairmentoffinancial assets(continued)
Loan receivables (continued)
The loss allowances for loan receivables as at 30 June reconciles to the opening loss allowances as follows:
Opening loss allowance as at 1 July
Increase in loan receivables loss allowance recognised in profit or loss during the year
Loan receivables written off during the year as uncollectible
Closing loss allowance as at 30 June
fY21
A$
572,934
117,366
fY20
A$
10,730
570,452
(465,020)
(8,248)
225,280
572,934
There were no receivables past due not impaired for the year ended 30 June 2021 (2020: nil).
Loan receivables are written off where there is no reasonable expectation of recovery. Indicators that there is no reasonable
expectation of recovery include, amongst others, days past due without repayment, recourse available to the group such as
realisability of security, insurance payout and other related factors.
Impairment losses on loan receivables are presented as net impairment losses within operating profit. Subsequent recoveries
of amounts previously written off are credited against the same line item.
Trade receivables
The culmination of the series of protections against credit risk identified in note 10(b)(i) above is that the identified loss allowance
as at 30 June 2021 and 30 June 2020 was determined for trade receivables to be immaterial, resulting in the non-recognition
of any expected credit losses.
(c) Liquidity risk
Liquidity risk arises from the possibility that the group might encounter difficulty in settling its debts or otherwise meeting
its obligations related to financial liabilities. The group manages this risk through the following mechanisms:
• preparing forward looking cash flow analyses in relation to its operating, investing and financing activities;
• obtaining funding from a variety of sources;
• maintaining a reputable credit profile;
• managing credit risk related to financial assets;
• investing cash and cash equivalents and deposits at call with major financial institutions; and
• comparing the maturity profile of financial liabilities with the realisation profile of financial assets.
62
10 Financial risk management (continued)
(c) Liquidity risk(continued)
(i) Maturitiesoffinancial liabilities
The tables below analyse the group’s financial liabilities into relevant maturity groupings based on their contractual maturities.
The amounts disclosed in the table are the contractual undiscounted cash flows.
CoNtRACtuAL
MAtUrItIes of
FiNANCiAL LiABiLitiES
As at 30 June 2021
Merchant settlements
outstanding
Trade and other
payables
Lease liabilities
Borrowings
Total
As at 30 June 2020
Merchant settlements
outstanding
Trade and other
payables
Lease liabilities
Borrowings
Total
LESS thAN
12 MontHs
Between 1
And 2
YeArs
Between 2
And 5
YeArs
totAL
Con-
tRACtuAL
CASh FLoWS
over 5
YeArs
CARRyiNg
AMoUnt
notes
A$
A$
A$
A$
A$
A$
6(a)
10,032,343
6(c)
962,151
–
–
–
–
340,592
283,147
134,586
6(d)
13,342,018
140,849
–
24,677,104
423,996
134,586
6(a)
9,638,297
6(c)
695,297
–
–
–
–
332,147
365,065
436,484
6(d)
25,384,864
83,803
–
36,050,605
448,868
436,484
–
–
–
–
–
–
–
–
–
–
10,032,343
10,032,343
962,151
962,151
758,325
758,325
13,482,867
13,482,867
25,235,686
25,235,686
9,638,297
9,638,297
695,297
695,297
1,133,696
1,133,696
25,468,667
25,468,667
36,935,957
36,935,957
11 Capital management
(a) Risk management
The group’s objectives when managing capital are to:
• safeguard their ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits
for other stakeholders; and
• maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the group may issue new shares or reduce its capital, subject to the provisions
of the group’s constitution. The capital structure of the group consists of equity attributed to equity holders of the group,
comprising contributed equity, reserves and accumulated losses. By monitoring undiscounted cash flow forecasts and
actual cash flows provided to the board by the group’s management, the board monitors the need to raise additional equity
from the equity markets.
QuickFee Limited | Annual Report 2021
63
Notes to the financial statements
continued
11 Capital management (continued)
(b) Dividends
No dividends have been paid or declared by QuickFee Limited for the current financial year. No dividends of QuickFee Limited were
paid for the previous financial year.
(i) Franking credits
fY21
A$
fY20
A$
Franking credits available for subsequent reporting periods based on a tax rate of 26%
(2020: 27.5%)
133,535
141,239
The above amounts are calculated from the balance of the franking account as at the end of the reporting period, adjusted for
franking credits and debits that will arise from the settlement of liabilities or receivables for income tax and dividends after the
end of the year.
The amounts include franking credits that would be available to the parent entity if distributable profits of subsidiaries were paid
as dividends.
12 interests in other entities
(a) Material subsidiaries
The group’s principal subsidiaries at 30 June 2021 are set out below. They have share capital consisting solely of ordinary shares
that are held directly by the group, and the proportion of ownership interests held equals the voting rights held by the group.
The country of incorporation or registration is also their principal place of business.
ownersHIP Interest
hELD By thE gRoup
fY21
fY20
%
100
100
–
100
100
100
100
%
100
100
100
100
100
100
100
nAMe of entItY
pLACE oF BuSiNESS/
CoUntrY of InCorPorAtIon
QuickFee Australia Pty Ltd
Australia
QuickFee Finance Pty Ltd
Australia
QuickFee GCI Pty Limited
Australia
QuickFee Group LLC
United States
QuickFee Finance LLC
United States
QuickFee GCI LLC
QuickFee, Inc.
United States
United States
13 Contingent liabilities
The group had no material contingent liabilities at 30 June 2021.
64
14 Events occurring after the reporting period
No matter or circumstance has occurred subsequent to period end that has significantly affected, or may significantly affect,
the operations of the group, the results of those operations or the state of affairs of the group or economic entity in subsequent
financial periods.
15 Related party transactions
(a) Subsidiaries
Interests in subsidiaries are set out in note 12(a).
(b) Keymanagementpersonnel compensation
Short-term employee benefits
Post-employment benefits
Long-term benefits
Share-based payments
Detailed remuneration disclosures are provided in the remuneration report on pages 19 to 31.
(c) Transactionswithotherrelated parties
Sales and purchases of goods and services
Purchases of various goods and services from entities controlled by
key management personnel (i)
fY21
A$
fY20
A$
1,404,206
1,395,222
39,704
4,934
21,003
9,281
250,844
322,518
1,699,688
1,748,024
fY21
A$
fY20
A$
10,000
10,000
26,500
26,500
(i) Purchasesfromentitiescontrolledbykeymanagement personnel
The group acquired the following services from entities that are controlled by members of the group’s key management personnel:
• Consultancy fees
For detailed disclosures please refer to the remuneration report on pages 19 to 31.
QuickFee Limited | Annual Report 2021
65
Notes to the financial statements
continued
16 Share-based payments
(a) Options
The establishment of the ‘Performance Rights and Options Plan’ (PROP) was adopted on IPO of QuickFee Limited on 9 July 2019.
The plan is designed to provide long-term incentives for employees (including directors) and consultants to deliver long-term
shareholder returns. Participation in the plan is at the board’s discretion and no individual has a contractual right to participate
in the plan or to receive any guaranteed benefits.
Set out below are summaries of options granted under the PROP:
fY21
fY20
AvERAgE
exerCIse PrICe
Per sHAre
oPtIon
A$
0.426
0.624
0.605
0.461
0.342
AvERAgE
exerCIse PrICe
Per sHAre
oPtIon
A$
–
nUMBer of
oPtIons
–
0.426
9,800,000
–
0.426
0.336
–
9,800,000
4,866,666
nUMBer of
oPtIons
9,800,000
3,600,000
(1,666,667)
11,733,333
5,066,666
As at 1 July
Granted during the period:
Forfeited/lapsed during the period
As at 30 June
Vested and exercisable at 30 June
66
16 Share-based payments (continued)
(a) Options(continued)
Share options outstanding at the end of the period have the following expiry dates and exercise prices:
gRANt
dAte
hoLDER
Code
IssUe
dAte
exPIrY
dAte
exerCIse
PrICe
fY21
nUMBer of
oPtIons
fY20
nUMBer of
oPtIons
2019-01-22 Bruce Coombes
QFEAB (T1) 2019-07-09 2023-07-09
A$ 0.300
1,000,000
1,000,000
2019-01-22 Bruce Coombes
QFEAB (T2) 2019-07-09 2023-07-09
A$ 0.400
1,000,000
1,000,000
2019-01-22 Bruce Coombes
QFEAB (T3) 2019-07-09 2023-07-09
A$ 0.500
1,000,000
1,000,000
2019-01-22
EverBlu Capital
QFEAB (T4) 2019-07-09 2022-07-09
A$ 0.200
1,000,000
1,000,000
2019-01-22
EverBlu Capital
QFEAB (T5) 2019-07-09 2022-07-09
A$ 0.300
1,000,000
1,000,000
2019-01-22
EverBlu Capital
QFEAB (T6) 2019-07-09 2022-07-09
A$ 0.400
1,000,000
1,000,000
2020-03-18 Various employees
QFEAD (T1) 2020-07-30 2025-06-30
A$ 0.500
2020-03-18 Various employees
QFEAD (T2) 2020-07-30 2025-06-30
A$ 0.500
2020-03-18 Various employees
QFEAD (T3) 2020-07-30 2025-06-30
A$ 0.500
2020-03-18 Various employees
2020-03-18 Various employees
QFEAE
QFEAF
2020-07-30 2025-06-30
A$ 0.600
2020-07-30 2025-06-30
A$ 0.750
2020-07-23 Barry Lewin
QFEAG (T1) 2020-07-30 2025-07-23
2020-07-23 Barry Lewin
QFEAG (T2) 2020-07-30 2025-07-23
2020-07-23 Barry Lewin
QFEAG (T3) 2020-07-30 2025-07-23
2020-07-23 Dale Smorgon
QFEAG (T1) 2020-07-30 2025-07-23
2020-07-23 Dale Smorgon
QFEAG (T2) 2020-07-30 2025-07-23
2020-07-23 Dale Smorgon
QFEAG (T3) 2020-07-30 2025-07-23
2021-05-26 Various employees
Not issued
Not issued
2026-01-31
2021-05-26
Simon Yeandle
Not issued
Not issued
2026-01-31
2021-05-26
Simon Yeandle
Not issued
Not issued
2026-01-31
A$ 0.500
A$ 0.500
A$ 0.500
A$ 0.500
A$ 0.500
A$ 0.500
A$ 0.580
A$ 0.500
A$ 0.750
866,666
333,333
333,334
–
–
100,000
100,000
100,000
100,000
100,000
100,000
100,000
750,000
750,000
2021-05-26
Eric Lookhoff
Not issued
Not issued
2026-01-31
A$ 0.500
1,000,000
2021-05-26
Eric Lookhoff
Not issued
Not issued
2026-01-31
A$ 0.750
1,000,000
866,666
666,666
666,668
500,000
500,000
100,000
100,000
100,000
100,000
100,000
100,000
–
–
–
–
–
Total
11,733,333
9,800,000
fY21
fY20
Weighted average remaining contractual life of options outstanding at end of period
2.92 years
3.49 years
The grant of 3,000,000 executive options (QFEAB) to Bruce Coombes was contingent on the IPO occurring. These options expire
on 9 July 2023 and comprise three tranches of 1,000,000 options (T1, T2 and T3) with exercise prices of A$0.30, A$0.40 and
A$0.50, respectively. T1 and T2 options vested on 9 July 2020 and 2021, respectively; T3 vest on 9 July 2022, contingent on
continued employment at the vesting date.
The grant of 3,200,000 employee options (QFEAD/QFEAE/QFEAF) across five tranches on 18 March 2020 (1,666,667
outstanding as at 30 June 2021) vest at various dates contingent on continued employment through to each vesting date.
The second (T2) and third tranches (T3) also contain milestone conditions. These options expire on 30 June 2025.
The 600,000 director options (QFEAG) granted to Barry Lewin and Dale Smorgon on 23 July 2020 vest in three equal tranches
at 30 June 2021 (T1), 2022 (T2) and 2023 (T3), respectively, contingent on continued employment through to each vesting date.
These options expire on 23 July 2025. As the grant date of 23 July 2020 occurred after the directors began rendering services
in respect of that grant, AASB 2 requires the group to commence recognition of the share-based payment expense when the
services are received. Consequently, the group commenced amortisation of the share-based payment expense on 6 May 2020
as detailed in the EGM notice of meeting. The valuation inputs reflect the 23 July 2020 grant date fair value.
The grant of 3,600,000 employee options (not yet issued) across five tranches on 26 May 2021 vest at various dates contingent
on continued employment through to each vesting date. These options expire on 31 January 2026.
QuickFee Limited | Annual Report 2021
67
Notes to the financial statements
continued
16 Share-based payments (continued)
(a) Options(continued)
(i) Fairvalueofoptions granted
The assessed fair value at grant date of options was determined using the binomial pricing model that takes into account
the exercise price, the term of the option, the share price at grant date and expected price volatility of the underlying share,
the expected dividend yield, the risk-free interest rate for the term of the option and certain probability assumptions.
The model inputs for options granted during the year ended 30 June 2021 included:
Code
gRANt
dAte
exerCIse
PrICe
no. of
oPtIons
sHAre
PrICe At
gRANt
dAte
exPeCted
voLAtiLity
dIvIdend
yiELD
rIsk-free
Interest
rAte
FAiR vALuE
At gRANt
dAte Per
oPtIon
QFEAG (T1) 2020-07-23
A$ 0.500
100,000
A$ 0.770
QFEAG (T2) 2020-07-23
A$ 0.500
100,000
A$ 0.770
QFEAG (T3) 2020-07-23
A$ 0.500
100,000
A$ 0.770
QFEAG (T1) 2020-07-23
A$ 0.500
100,000
A$ 0.770
QFEAG (T2) 2020-07-23
A$ 0.500
100,000
A$ 0.770
QFEAG (T3) 2020-07-23
A$ 0.500
100,000
A$ 0.770
Not issued
2021-05-26
A$ 0.580
100,000
A$ 0.240
Not issued
2021-05-26
A$ 0.500
750,000
A$ 0.240
Not issued
2021-05-26
A$ 0.750
750,000
A$ 0.240
Not issued
2021-05-26
A$ 0.500
1,000,000
A$ 0.240
Not issued
2021-05-26
A$ 0.750
1,000,000
A$ 0.240
88.0%
88.0%
88.0%
88.0%
88.0%
88.0%
88.6%
88.6%
88.6%
88.6%
88.6%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.43% A$ 0.5732
0.43% A$ 0.5732
0.43% A$ 0.5732
0.43% A$ 0.5732
0.43% A$ 0.5732
0.43% A$ 0.5732
0.67% A$ 0.1221
0.67% A$ 0.1288
0.67% A$ 0.1103
0.67% A$ 0.1288
0.67% A$ 0.1103
(b) Performance rights
Set out below are summaries of performance rights granted under the PROP:
fY21
nUMBer of
PerforMAnCe
RightS
fY20
nUMBer of
PerforMAnCe
RightS
notes
–
–
700,000
5,851,370
7(a)(i)
–
(5,851,370)
700,000
–
As at 1 July
Granted during the period:
Vested during the period:
As at 30 June
68
16 Share-based payments (continued)
(b) Performance rights(continued)
In January 2017, two employees of QuickFee US agreed to each relinquish US$160,000 of salaries over an 18-month period
ending in June 2018 in exchange for the grant of performance rights contingent on the IPO of QuickFee Limited. These
performance rights vested on QuickFee US having successfully contracted more than 300 firms (by number) within 24 months
following the issue date. Accordingly, 5,851,370 performance rights were issued on 9 July 2019, including 2,925,685 to the
group’s Chief Operating Officer, James Drummond. On 8 November 2019, these performance rights vested and 5,851,370
ordinary shares were issued.
The grant of 700,000 performance rights on 26 May 2021 to Eric Lookhoff (President, QuickFee US at grant date) vest on
31 January 2022, contingent on continued employment.
(i) Fairvalueofperformancerights granted
The assessed fair value at grant date of performance shares at grant date was determined using the binomial pricing model
that takes into account the term of the performance right, the share price at grant date and expected price volatility of the
underlying share, the expected dividend yield, the risk-free interest rate for the term of the performance right and certain
probability assumptions.
The model inputs for performance rights granted during the year ended 30 June 2021 included:
exerCIse
PrICe
no. of Perf.
RightS
sHAre
PrICe At
gRANt DAtE
exPeCted
voLAtiLity
dIvIdend
yiELD
FAiR vALuE At
gRANt DAtE
Per
PerforMAnCe
Right
rIsk-free
Interest
rAte
A$ –
700,000
A$ 0.240
88.6%
0.0%
0.67%
A$ 0.2400
gRANt DAtE
2021-05-26
(c) Expensesarisingfromshare-basedpayment transactions
Total expenses arising from share-based payment transactions recognised during the period were as follows:
Options issued under the PROP (contingent on IPO)
Other options issued under the PROP (other)
Performance rights issued under the PROP (contingent on IPO)
Performance rights issued under the PROP (other)
Shares issued under the PROP (contingent on IPO)
Less: shares issued under the PROP (contingent on IPO) transferred to share
issue transaction costs
notes
7(a)(i)
7(a)(i)
fY21
A$
25,590
206,095
–
23,520
–
–
fY20
A$
135,900
49,153
292,568
–
160,000
(77,280)
255,205
560,341
QuickFee Limited | Annual Report 2021
69
Notes to the financial statements
continued
17 Remuneration of auditors
During the year the following fees were paid or payable for services provided by William Buck Audit (Vic) Pty Ltd (William Buck)
as the auditor of the parent entity, QuickFee Limited, by William Buck’s related network firms and non-related audit firms:
(a) Auditorsofthegroup–WilliamBuckandrelatednetwork firms
Audit and review of financial reports
Group
Total services provided by William Buck
(b) Otherauditorsandtheirrelatednetwork firms
Other audit services – agreed upon procedure engagements
Subsidiaries
Total services provided by other auditors (excluding William Buck)
18 Loss per share
(a) Reconciliationoflossusedincalculatinglossper share
fY21
A$
67,000
67,000
fY21
A$
2,000
2,000
fY20
A$
77,150
77,150
fY20
A$
14,600
14,600
fY21
A$
fY20
A$
Basic and diluted loss per share
Loss attributable to the ordinary equity holders of the company used in calculating
loss per share
8,546,086
3,826,550
(b) Weightedaveragenumberofsharesusedasthe denominator
fY21
fY20
nUMBer
nUMBer
Weighted average number of ordinary shares used as the denominator in calculating
basic and diluted loss per share
214,365,210
150,242,583
(c) Informationconcerningtheclassificationof securities
Options and performance rights granted to employees (including directors) under the PROP are considered to be potential
ordinary shares. On the basis of the group’s losses, the outstanding options and performance rights are not included in the
calculation of diluted earnings per share because they are antidilutive for the year ended 30 June 2021 and 30 June 2020.
These securities could potentially dilute basic earnings per share in the future. Details relating to the options and performance
rights are set out in note 16(a) and 16(b), respectively.
70
19 parent entity financial information
(a) Summaryfinancial information
The individual financial statements for the parent entity, QuickFee Limited, show the following aggregate amounts:
Statement of financial position
Current assets
Non-current assets
Total assets
Current liabilities
Total liabilities
Shareholders’ equity
Contributed equity
Other reserves
Accumulated losses
Loss for the period
Total comprehensive loss
fY21
A$
fY20
A$
434,369
268,023
33,954,699
21,588,301
34,389,068
21,856,324
138,112
138,112
139,228
139,228
42,477,713
25,035,956
440,258
185,053
(8,667,015)
(3,503,913)
34,250,956
21,717,096
5,163,102
2,457,228
5,163,102
2,457,228
(b) Guaranteesenteredintobytheparent entity
The parent entity has not entered into any guarantees in relation to debts of its controlled entities in the year ended 30 June 2021
(2020: nil)
(c) Guaranteesenteredintobytheparent entity
The parent entity did not have any contingent liabilities as at 30 June 2021 or 30 June 2020.
(d) Contractualcommitmentsfortheacquisitionofproperty,plantor equipment
The parent entity has not entered into any contractual commitments for the acquisition of property, plant or equipment in the year
ended 30 June 2021 (2020: nil)
(e) Determiningtheparententityfinancial information
The financial information for the parent entity has been prepared on the same basis as the consolidated financial statements.
(i) Investmentsin subsidiaries
Investments in subsidiaries are accounted for at cost in the financial statements of QuickFee Limited.
(ii) Taxconsolidation legislation
QuickFee Limited and its wholly-owned Australian controlled entities have implemented the tax consolidation legislation.
The head entity, QuickFee Limited, and the controlled entities in the tax consolidated group account for their own current
and deferred tax amounts. These tax amounts are measured as if each entity in the tax consolidated group continues to be
a stand-alone taxpayer in its own right.
QuickFee Limited | Annual Report 2021
71
Notes to the financial statements
continued
20 Summary of significant accounting policies
(a) Basis of preparation
(b) Principles of consolidation
(c) Segment reporting
(d) Foreign currency translation
(e) Revenue recognition
(f) Government grants
(g) Income tax
(h) Leases
(i) Cash and cash equivalents
73
73
74
74
75
75
75
76
76
(j) Loan receivables, payment processing receivables and merchant settlements outstanding 76
(k) Trade receivables
(l) Property, plant and equipment
(m) Trade and other payables
(n) Borrowings
(o) Employee benefits
(p) Contributed equity
(q) Loss per share
(r) Rounding of amounts
(s) Goods and services tax (GST)
76
76
77
77
77
78
78
79
79
72
20 Summary of significant accounting policies (continued)
This note provides a list of the significant accounting policies adopted in the preparation of these consolidated financial statements
to the extent they have not already been disclosed in the other notes above. These policies have been consistently applied to
all the years presented, unless otherwise stated. The financial statements are for the group consisting of QuickFee Limited and
its subsidiaries.
(a) Basisofpreparation
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board and the Corporations Act 2001. QuickFee Limited is
a for-profit entity for the purpose of preparing the financial statements.
These financial statements cover the period from 1 July 2020 to 30 June 2021 (FY21). The comparative period is from 1 July 2019
to 30 June 2020 (FY20).
(i) CompliancewithIFRS
The consolidated financial statements of the QuickFee Limited group also comply with International Financial Reporting Standards
(IFRS) as issued by the International Accounting Standards Board (IASB).
(ii) Historicalcostconvention
The financial statements have been prepared on a historical cost basis.
(iii) Newandamendedstandardsadoptedbythegroup
The group has applied the following standards and amendments for the first time for the annual reporting period commencing
1 July 2020:
• AASB 2018-7 Amendments to Australian Accounting Standards – Definition of Material [AASB 101 and AASB 108]
• AASB 2018-6 Amendments to Australian Accounting Standards – Definition of a Business [AASB 3]
• AASB 2019-3 Amendments to Australian Accounting Standards – Interest Rate Benchmark Reform [AASB 9, AASB 139
and AASB 7]
• AASB 2019-5 Amendments to Australian Accounting Standards – Disclosure of the Effect of New IFRS Standards Not Yet
issued in Australia [AASB 1054]
• Conceptual Framework for Financial Reporting and AASB 2019-1 Amendments to Australian Accounting Standards –
References to the Conceptual Framework.
The group also elected to adopt the following amendments early:
• AASB 2020-3 Amendments to Australian Accounting Standards – Annual Improvements 2018-2020 and Other Amendments
[AASB 1, AASB 3, AASB 9, AASB 116, AASB 137 and AASB 141].
The amendments listed above did not have any impact on the amounts recognised in prior periods and are not expected to
significantly affect the current or future periods.
(b) Principlesofconsolidation
(i) Subsidiaries
Subsidiaries are all entities (including structured entities) over which the group has control. The group controls an entity when
the group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those
returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control
is transferred to the group. They are deconsolidated from the date that control ceases.
The ‘pooling method’ of accounting is used to account for common control business combinations by the group.
QuickFee Limited | Annual Report 2021
73
Notes to the financial statements
continued
20 Summary of significant accounting policies (continued)
(b) Principlesofconsolidation(continued)
(i) Subsidiaries(continued)
Intercompany transactions, balances and unrealised gains on transactions between group companies are eliminated. Unrealised
losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies
of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group.
(c) Segmentreporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.
This has been identified as the Chief Executive Officer, Chief Financial Officer and Managing Director, Australia.
(d) Foreigncurrencytranslation
(i) Functionalandpresentationcurrency
Items included in the financial statements of each of the group’s entities are measured using the currency of the primary economic
environment in which the entity operates (‘the functional currency’). The consolidated financial statements are presented in
Australian dollars (A$), which is QuickFee Limited’s functional and presentation currency.
(ii) Transactionsandbalances
Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions.
Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets
and liabilities denominated in foreign currencies at year end exchange rates are generally recognised in profit or loss.
Foreign exchange gains and losses are presented in the consolidated statement of profit or loss and other comprehensive income
on a net basis within other losses.
Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date
when the fair value was determined. Translation differences on assets and liabilities carried at fair value are reported as part of
the fair value gain or loss. For example, translation differences on non-monetary assets and liabilities such as equities held at
fair value through profit or loss are recognised in profit or loss as part of the fair value gain or loss and translation differences
on non-monetary assets such as equities classified as at fair value through other comprehensive income are recognised in other
comprehensive income.
(iii) Groupcompanies
The results and financial position of foreign operations (none of which has the currency of a hyperinflationary economy) that have
a functional currency different from the presentation currency are translated into the presentation currency as follows:
• assets and liabilities for each consolidated statement of financial position presented are translated at the closing rate at the date
of that consolidated statement of financial position;
• income and expenses for each consolidated statement of profit or loss and other comprehensive income are translated
at average exchange rates (unless this is not a reasonable approximation of the cumulative effect of the rates prevailing
on the transaction dates, in which case income and expenses are translated at the dates of the transactions); and
• all resulting exchange differences are recognised in other comprehensive income.
On consolidation, exchange differences arising from the translation of any net investment in foreign entities, and of borrowings
and other financial instruments designated as hedges of such investments, are recognised in other comprehensive income.
When a foreign operation is sold or any borrowings forming part of the net investment are repaid, the associated exchange
differences are reclassified to profit or loss, as part of the gain or loss on sale.
74
20 Summary of significant accounting policies (continued)
(e) Revenuerecognition
The accounting policies for the group’s revenue from contracts with customers are explained in note 3.
(f) Governmentgrants
Grants from the government are recognised at their fair value where there is a reasonable assurance that the grant will be received,
and the group will comply with all attached conditions.
(g) Incometax
The income tax expense or credit for the period is the tax payable on the current period’s taxable income based on the applicable
income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences
and to unused tax losses.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the
reporting period in the countries where the company and its subsidiaries and associates operate and generate taxable income.
Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is
subject to interpretation and considers whether it is probable that a taxation authority will accept an uncertain tax treatment.
The group measures its tax balances either based on the most likely amount or the expected value, depending on which method
provides a better prediction of the resolution of the uncertainty.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets
and liabilities and their carrying amounts in the consolidated financial statements. However, deferred tax liabilities are not
recognised if they arise from the initial recognition of goodwill. Deferred income tax is also not accounted for if it arises from initial
recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects
neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted
or substantively enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset
is realised or the deferred income tax liability is settled.
Deferred tax assets are recognised only if it is probable that future taxable amounts will be available to utilise those temporary
differences and losses.
Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax bases
of investments in foreign operations where the group is able to control the timing of the reversal of the temporary differences
and it is probable that the differences will not reverse in the foreseeable future.
Deferred tax assets and liabilities are offset where there is a legally enforceable right to offset current tax assets and liabilities and
where the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the
entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability
simultaneously.
Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other
comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly
in equity, respectively.
(i) Investmentallowancesandsimilartaxincentives
Companies within the group may be entitled to claim special tax deductions for investments in qualifying assets or in relation
to qualifying expenditure (e.g. the research and development tax incentive regime in Australia or other investment allowances).
Where the underlying tax consolidated group is in a taxable income position, the group accounts for such allowances as tax
credits, which means that the allowance reduces income tax payable and current tax expense. Where the underlying tax
consolidated group is in a taxable loss position, the group accounts for such allowances as government grants.
QuickFee Limited | Annual Report 2021
75
Notes to the financial statements
continued
20 Summary of significant accounting policies (continued)
(h) Leases
The group’s leasing policy is described in note 6(b).
(i) Cashandcashequivalents
For the purpose of presentation in the consolidated statement of cash flows, 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, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the consolidated statement
of financial position.
(j) Loanreceivables,paymentprocessingreceivablesandmerchantsettlementsoutstanding
The accounting policies for the group’s loan receivables, payment processing receivables and merchant settlements outstanding
are explained in note 6(a).
(i) Impairment
The group assesses on a forward-looking basis, the expected credit losses associated with its loan receivables carried at
amortised cost. The group applies the general approach permitted by AASB 9, which requires expected credit losses to
be recognised at each reporting date across three stages, see note 10(b) for further details.
(k) Tradereceivables
Trade receivables are amounts due from customers for services performed in the ordinary course of business. They are generally
due for settlement within 30 days and are therefore all classified as current. Trade receivables are recognised initially at the amount
of consideration that is unconditional unless they contain significant financing components, when they are recognised at fair value.
The group holds the trade receivables with the objective of collecting the contractual cash flows and therefore measures them
subsequently at amortised cost using the effective interest method. Details about the group’s impairment policies and the
calculation of the loss allowance are provided in note 10(b).
(l) Property,plantandequipment
Property, plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that is directly
attributable to the acquisition of the items. Cost may also include transfers from equity of any gains or losses on qualifying cash
flow hedges of foreign currency purchases of property, plant and equipment.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item will flow to the group and the cost of the item can be measured
reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs
and maintenance are charged to profit or loss during the reporting period in which they are incurred.
Property, plant and equipment is recognised at historical cost less depreciation. Depreciation is calculated using the straight-line
method to allocate the cost or revalued amounts of the assets, net of their residual values, over their estimated useful lives or, in the
case of leasehold improvements, the shorter lease term.
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
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.
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in profit or loss.
76
20 Summary of significant accounting policies (continued)
(m) Tradeandotherpayables
These amounts represent liabilities for goods and services provided to the group prior to the end of financial period which are
unpaid. The amounts are unsecured and are usually paid within 30 days of recognition. Trade and other payables are presented
as current liabilities unless payment is not due within 12 months after the reporting period. They are recognised initially at their
fair value and subsequently measured at amortised cost using the effective interest method.
(n) Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at
amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in profit
or loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are
recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this
case, the fee is deferred until the draw down occurs. To the extent there is no evidence that it is probable that some or all of the
facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility
to which it relates.
The fair value of the liability portion of a convertible bond is determined using a market interest rate for an equivalent non-
convertible bond. This amount is recorded as a liability on an amortised cost basis until extinguished on conversion or maturity of
the bonds. The remainder of the proceeds is allocated to the conversion option. This is recognised and included in shareholders’
equity, net of income tax effects.
Borrowings are removed from the consolidated statement of financial position when the obligation specified in the contract is
discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished
or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed,
is recognised in profit or loss as other income or finance costs.
Where the terms of a financial liability are renegotiated and the entity issues equity instruments to a creditor to extinguish all or
part of the liability (debt for equity swap), a gain or loss is recognised in profit or loss, which is measured as the difference between
the carrying amount of the financial liability and the fair value of the equity instruments issued.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for
at least 12 months after the reporting period.
(o) Employeebenefits
(i) Short-termbenefits
Liabilities for annual leave that are expected to be settled wholly within 12 months after the end of the period in which the
employees render the related service are recognised in respect of employees’ services up to the end of the reporting period and
are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee
benefit obligations in the consolidated statement of financial position.
(ii) Otherlong-termemployeebenefitobligations
The group also has liabilities for long service leave and annual leave that are not expected to be settled wholly within 12 months
after the end of the period in which the employees render the related service. These obligations are therefore measured as the
present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting
period using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of
employee departures and periods of service. Expected future payments are discounted using market yields at the end of the
reporting period of high-quality corporate bonds with terms and currencies that match, as closely as possible, the estimated future
cash outflows. Remeasurements as a result of experience adjustments and changes in actuarial assumptions are recognised in
profit or loss.
The obligations are presented as current liabilities in the consolidated statement of financial position if the entity does not have an
unconditional right to defer settlement for at least 12 months after the reporting period, regardless of when the actual settlement
is expected to occur.
QuickFee Limited | Annual Report 2021
77
Notes to the financial statements
continued
20 Summary of significant accounting policies (continued)
(o) Employeebenefits(continued)
(iii) Share-basedpayments
Share-based compensation benefits are provided to employees via the ‘Performance Rights and Options Plan’ (PROP),
an employee share scheme. Information relating to this scheme is set out in note 16.
Employee options
The fair value of options granted under the PROP are recognised as a share-based payment expense with a corresponding
increase in equity. The total amount to be expensed is determined by reference to the fair value of the options granted:
• including any market performance conditions (e.g. the group’s share price);
• excluding the impact of any service and non-market performance vesting conditions (e.g. profitability, loan growth targets
and remaining an employee of the group over a specified time period); and
• including the impact of any non-vesting conditions (e.g. the requirement for employees to save or hold shares for a specific
period of time).
The total expense is recognised over the vesting period, which is the period over which all the specified vesting conditions are to
be satisfied. At the end of each period, the entity revises its estimates of the number of options that are expected to vest based
on the non-market vesting and service conditions. It recognises the impact of the revision to original estimates, if any, in profit
or loss, with a corresponding adjustment to equity.
Performance rights
The fair value of performance rights granted to employees for nil consideration under the PROP is recognised as an expense over
the relevant service period, being the year to which the bonus relates and the vesting period of the performance rights. The fair
value is measured at the grant date of the performance rights and is recognised in equity in the share-based payment reserve.
The number of performance rights expected to vest is estimated based on the non- market vesting conditions. The estimates are
revised at the end of each reporting period and adjustments are recognised in profit or loss and the share-based payment reserve.
Where performance rights are forfeited due to a failure by the employee to satisfy the service conditions, any expenses previously
recognised in relation to such performance rights are reversed effective from the date of the forfeiture.
(p) Contributedequity
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.
(q) Losspershare
(i) Basiclosspershare
Basic loss per share is calculated by dividing:
• the loss attributable to owners of the company, excluding any costs of servicing equity other than ordinary shares; and
• by the weighted average number of ordinary shares outstanding during the financial period, adjusted for bonus elements
in ordinary shares issued during the year.
(ii) Dilutedlosspershare
Diluted loss per share adjusts the figures used in the determination of basic loss 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 the conversion
of all dilutive potential ordinary shares.
78
20 Summary of significant accounting policies (continued)
(r) Roundingofamounts
The company is of a kind referred to in ASIC Legislative Instrument 2016/191, relating to the ‘rounding off’ of amounts in the financial
statements. Amounts in the financial statements have been rounded off in accordance with the instrument to the nearest dollar.
(s) Goodsandservicestax(GST)
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable
from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense.
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 taxation authority is included with other receivables or payables in the consolidated 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 taxation authority, are presented as operating cash flows.
.
QuickFee Limited | Annual Report 2021
79
Directors’ declaration
For the year ended 30 June 2021
In the directors’ opinion:
(a) the financial statements and notes set out on pages 37 to 79 are in accordance with the Corporations Act 2001,
including:
(i) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting
requirements, and
(ii) giving a true and fair view of the group’s financial position as at 30 June 2021 and of its performance for the year ended
on that date, and
(b) there are reasonable grounds to believe that QuickFee Limited will be able to pay its debts as and when they become due
and payable.
Note 20(a) confirms that the financial statements also comply with International Financial Reporting Standards as issued by the
International Accounting Standards Board.
The directors have been given the declarations by the chief executive officer and chief financial officer required by section 295A
of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the directors.
Barry Lewin
Non-Executive Chairman
26 August 2021
80
Independent auditor’s report
For the year ended 30 June 2021
QuickFee Limited
Independent auditor’s report to members
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of QuickFee Limited (the Company) and its controlled
entities (together, the Group), which comprises the consolidated statement of financial
position as at 30 June 2021, the consolidated statement of comprehensive income, the
consolidated statement of changes in equity and the consolidated statement of cash flows
for the year then ended, and notes to the financial statements, including a summary of
significant accounting policies and other explanatory information, 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 ended on that date; 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 auditor independence requirements of
the Corporations Act 2001 and the ethical requirements of the Accounting Professional
and 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 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.
QuickFee Limited | Annual Report 2021
81
Independent auditor’s report
continued
REVENUE RECOGNITION
Area of focus
As disclosed in Note 3 to the financial
statements, QuickFee Limited has three distinct
non-interest revenue streams material to the
audit, being a) its loan application fees; b) its
merchant fee revenue; and c) its platform fee
revenue.
These revenues are measured both at a point in
time and over time as the performance condition
is satisfied under the contract.
There is risk that revenues are recognised in-
advance of the performance condition being
satisfied.
How our audit addressed it
Our audit procedures included:
— Examining the revenue policies for the
individual non-interest bearing revenue
streams and tracing to underlying
documentation to determine if those
revenue streams are satisfied at a point in
time or over time;
— For those revenues earned at a point in
time, performing a sample of cut off testing
to ensure that revenues are earned in-
accordance with the underlying
transaction; and
— For those revenues earned over time,
tracing through to the underlying
performance condition (being typically the
underlying loan agreement) and ensuring
that revenues are released to the profit in
loss in line with the pro-rata satisfaction of
that condition.
We also ensured that disclosures of revenue
recognition and the accounting policy thereon
are appropriate in the financial statements.
VALUATION OF THE EXPECTED CREDIT LOSS PROVISION
Area of focus
As disclosed in Note 10 to the financial
statements, expected credit losses for the year
ended 30 June 2021 totalled $225,280.
As a result of the COVID-19 pandemic, the
Group is exposed to an increased credit risk,
notwithstanding the fact that the following key
factors limit this overall exposure, being:
How our audit addressed it
Our audit procedures included:
— We recalculated the value of the loan books
as at period end by tracing to a sample of
loan contracts to ensure that the loan book
adequately aged loan balances and
identified any in-arrears exposures;
— We performed an ageing analysis of the
— Recourse arrangements against underlying
unpaid invoices owed to borrowers;
Group’s loan book to identify any
deterioration since the prior period;
— Credit insurance arrangements; and
— An overall low risk exposure to the
borrowing profile of professional services
firms, who have covenanted to their own
professional industry bodies to trade
solvently.
— We examined individual firms with material
outstanding loan balances and we reviewed
the going concern status of these firms by
performing background checks, reviewing
publicly available information and ensuring
sufficient credit checks were performed;
82
VALUATION OF THE EXPECTED CREDIT LOSS PROVISION (CONT.)
Area of focus
How our audit addressed it
At the end of the financial period management
conducted a detailed analysis and calculated a
provision for expected credit losses on its loan
books.
Due to the significance of the loan receivable
balance and the complex nature of the expected
credit loss calculation, this was considered a
key audit matter.
— We performed subsequent receipt testing
over individual loans to identify potential
exposures for the Group; and
— Examination of the Group’s insurance policy
to quantify any net exposures for in-arrears
loan balances.
We also examined key disclosures relevant to
credit risk in the financial statements
Other Information
The directors are responsible for the other information. The other information comprises the information in
the Group’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 this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors 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 ability of the Group 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 has no realistic alternative but to do so.
Auditor’s Responsibilities 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, 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.
QuickFee Limited | Annual Report 2021
83
Independent auditor’s report
continued
A further description of our responsibilities for the audit of these financial statements is located at the
Auditing and Assurance Standards Board website at:
http://www.auasb.gov.au/auditors_responsibilities/ar1.pdf
This description forms part of our independent auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in of the directors’ report for the year ended 30 June
2021.
In our opinion, the Remuneration Report of QuickFee 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.
William Buck Audit (Vic) Pty Ltd
ABN: 59 116 151 136
N.S. Benbow
Director
Melbourne, 26 August 2021
84
Shareholder information
For the year ended 30 June 2021
The shareholder information set out below was applicable as at 24 August 2021.
A. distribution of equity securities
Analysisofnumbersofshareholdersbysizeofholding:
NumBER oF ShARES hELD
nUMBer
oF hoLDERS
nUMBer
oF ShARES
%
oF ShARES
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and over
Total
399
1,495
681
281,048
4,069,078
5,390,581
1,207
39,857,360
206
172,603,171
3,988
222,201,238
0.13
1.83
2.43
17.94
77.67
100.00
There were 70 holders of less than a marketable parcel of ordinary shares.
Analysisofnumbersofoptionholdersbysizeofholding:
NumBER oF optioNS hELD
nUMBer
oF hoLDERS
nUMBer
oF optioNS
%
of oPtIons
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and over
Total
–
–
–
53
18
71
–
–
–
3,250,000
18,583,333
21,833,333
–
–
–
14.89
85.11
100.00
Analysisofnumbersofperformancerightholdersbysizeofholding:
NumBER oF pERFoRmANCE RightS hELD
nUMBer
oF hoLDERS
nUMBer of
PerforMAnCe
RightS
% of
PerforMAnCe
RightS
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and over
Total
–
–
–
–
1
1
–
–
–
–
–
–
–
–
950,000
950,000
100.00
100.00
QuickFee Limited | Annual Report 2021
85
Shareholder information
continued
B. Equity security holders
Twenty largest quoted equity security holders
The names of the twenty largest holders of quoted equity securities are listed below:
nAMe
UBS Nominees Pty Ltd
Derida Pty Ltd
Jamada Holdings Pty Ltd
HTI Management Pty Ltd
Bonec Pty Limited
Mr Kenneth Archie Gray & Mrs Julianne Gray
Wingate Direct Investments Pty Ltd
Rubi Holdings Pty Ltd
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