Appendix 4E
For the year ended 30 June 2024
Results for announcement to the market
Previous corresponding period: year ended 30 June 2023
$’000
Up/down
Movement %
Revenue from ordinary activities
20,295
Up
37.4%
Loss from ordinary activities after tax attributable to members
(4,666)
Down
–42.2%
Net loss for the period attributable to members
(4,666)
Down
–42.2%
The group has reported a loss for the period of A$4,666,000 (2023: $8,076,000), with net assets amounting to
A$8,508,000 as at 30 June 2024 (2023: A$8,945,000), including cash and cash equivalents of A$13,551,000 (2023:
A$3,387,000).
Please refer to the ‘review of operations and activities’ on pages 6 to 15 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 2024.
Dividends
No dividends have been paid, recommended, reinvested or declared by QuickFee Limited for the current financial year.
No dividends of QuickFee Limited were paid for the previous financial year. The group does not operate a dividend
reinvestment plan.
Net tangible assets per ordinary share
30 June 2024
Cents
30 June 2023
Cents
Net tangible assets per ordinary share
2.47
3.27
Changes in controlled entities
The following controlled entities were registered in the year ended 30 June 2024:
• QuickFee WG Financing Pty Ltd, a special purpose entity for borrowings facility purposes, registered on
3 November 2023.
There have been no other changes in controlled entities during the year ended 30 June 2024.
Foreign entities
All foreign entities have adopted the same accounting standards as the Australian parent entity.
Audit
The financial statements have been audited by the group’s independent auditor without any modified conclusion,
disclaimer or emphasis of matter.
QuickFee Limited
QuickFee Limited / Appendix·4E 2024
QuickFee Annual Report 2024
QuickFee Helps Professional Services firms Automate and
Accelerate Accounts Receivable and Grow Their Business
Building on the Foundations
for Transformational Growth
+ QuickFee is a leading B2B payments and automated engagement-to-
cash workflow solution for professional services firms, with a focus on
accounting and legal.
+ QuickFee operates in Australia and the US, with a low credit-loss business
model. QuickFee has a unique product portfolio made up of flexible
payment options and engagement-to-cash workflow automation.
+ QuickFee has a strong and experienced management team and an
engaged and aligned Board.
+ With the US market representing the largest opportunity for growth,
QuickFee aims to unlock transformational growth in the US by focusing
on five key levers: QuickFee Finance, QuickFee Connect, Differentiated
Technology, Strategic Alliances and Partnerships and Automation.
We will go into more detail on these levers in the Review of Operations and
Activities section.
CONTENTS
1.
Letter from the Chair
2.
Our winning strategy
6.
Review of operations
and activities
16.
Directors’ report
41.
Auditor’s independence
declaration
42.
Corporate governance
statement
43.
Financial statements
94.
Consolidated entity
disclosure statement
as at 30 June 2024
95.
Directors’ declaration
96.
Independent auditor’s
report
101.
Shareholder information
Back Cover.
Corporate directory
QuickFee helps
professionals automate
and accelerate Accounts
Receivable and grow
their business.
QuickFee is a market-leading payments, financing and Accounts Receivable
(A/R) automation provider for professional services firms, including 40% of the
INSIDE Public Accounting (IPA) Top 300 in the US.
With multiple payment options and powerful integrations that automate the
engagement-to-cash workflow, QuickFee accelerates getting invoices paid in full,
resulting in increased client spend, improved cash flow and reduced costs.
Through the QuickFee payment portal, clients can pay their professional
service provider with a credit or debit card, ACH/EFT transfer, or leverage
QuickFee’s exclusive client financing solution to set up a payment plan over 3,
6, 9, or 12 months. With QuickFee Finance, the client can set their own pace for
payments – and the firm gets paid in full, without incurring any costs.
QuickFee operates in the United States and Australia and focuses on serving
professional services firms with affordable and scalable solutions, backed by
world-class customer service.
1
QuickFee Limited / Annual Report 2024
Letter from the Chair
Dear shareholders,
On behalf of the Board, I have pleasure in presenting
QuickFee’s FY24 Annual Report.
Over the past year, I am pleased to report that we
delivered strong revenue growth on a stable cost base,
with improved profitability and a strengthened balance
sheet.
Total revenue was up 37% on pcp to A$20.3 million,
revenue from our core Finance product was up 53% on
pcp to A$11.9 million and the loan book grew 28% to
A$55 million at 30 June 2024. Our operating expenses
decreased by 1% to A$15.8 million and our net loss after
tax improved substantially to $4.7 million, up from a net
loss of $8.1 million in FY23. Importantly, the business
recorded its first positive EBTDA result in Q4 FY24.
These strong results reflect both increased total
transaction volumes (TTV) across all products and
improved revenue yields. We continue to benefit from a
higher interest rate environment and strong demand for
our solutions, which help our clients protect and preserve
their cash. We have a low credit risk business model and
we continue to have minimal bad debts across the
business.
In FY24, we successfully completed a series of
important operational milestones, which will underpin
future revenue growth and the scalability of our model.
We refined the sales strategy to drive growth in our core
higher-margin QuickFee Finance product, finalised new
strategic partnerships and improved internal processes
with an ‘automate everything’ mindset.
Our US leadership team further strengthened in FY24
with the addition of Dave Moore as our Chief Technology
Officer to drive product innovation and efficiency in our
development function. We continue to build a highly
scalable technology platform, which easily integrates with
a broad range of strategic partners and leading practice
management systems.
QuickFee Limited ABN 93 624 448 693
With a high performing and experienced management
team in place, we remain optimistic about the potential
for transformational growth in the US over the years
ahead. The market opportunity in the US remains
significant and QuickFee is well positioned to take
advantage of the industry tailwinds driving increased
adoption of e-invoicing.
We continued to strengthen our balance sheet
through the finalisation of a A$10m facility to support
growth in the Australian legal disbursement funding
product and the successful completion of a well-
supported A$4.4 million capital raise to fund further loan
book growth, reflecting a strong endorsement of the
significant growth opportunity ahead for QuickFee.
I would like to thank our funding partners for their
continued support, together with our new and existing
retail and institutional shareholders. This additional
funding provides the business with increased lending
capacity as the company continues to expand in both
Australia and the US.
I would also like to thank the entire QuickFee team
across Australia and the US for their ongoing commitment
and hard work through the year. We enter FY25 with
positive momentum across all metrics in the business and
we are focused on the delivery of a profitable FY25 and
continued growth in shareholder value.
Yours sincerely,
Dale Smorgon
Non-Executive Chairman
2
Commercial strategy
Accounts Receivable Accelerator &
Revenue Generator
Why firms work with QuickFee:
1.
R educe A/R – A/R typically runs high for firms and
we can help turn that A/R into cash.
2. Grow the Business - There are many priorities
competing for cash and we can help find more
of it for firms and their clients.
3. Automate Processes - We increase efficiency
while improving the client and employee
experience.
4. Save Money – Firms in the US can stop spending
money on credit card fees by reducing or
eliminating merchant fees.
QuickFee’s commercial strategy is
based on three main pillars:
1.
Being the accounting segment market leader for
automating the engagement-to-cash workflow for
firms over $1M in annual revenue
2. Expanding strategically and efficiently through
partnerships and alliances
3. Creating a scalable commercial foundation
+
QuickFee has established strong partnerships in the
US with industry leaders such as BDO Alliance, Allinial
Global, IRIS and Knuula and is exploring opportunities
to embed its Finance solution into other payments
and invoicing platforms.
+
QuickFee has invested in technology and automation
to enhance its sales and marketing effectiveness,
improve the customer experience and reduce costs.
QuickFee has a differentiated value proposition that covers the
entire engagement-to-cash workflow and offers flexible payment
options for firms and their clients.
TRUSTED FOR PAYMENTS AND
FINANCING SOLUTIONS SINCE 2009:
SERVICE
PROVIDERS
WORLDWIDE
USERS OF
QUICKFEE FINANCE
LIKELY TO USE A
PAYMENT PLAN
OPTION AGAIN1
LOANS
ORIGINATED
SINCE INCEPTION
1 QuickFee Payment Plan User Survey
3
QuickFee Limited / Annual Report 2024
QuickFee’s solutions provide a modern alternative to the outdated,
time-consuming invoicing and Accounts Receivable processes at
many professional service firms.
Product strategy
Comprehensive digital payment
solutions, powered by intelligent
automation.
QuickFee offers payments, financing and accounts
receivable (A/R) automation for professional service
firms. We help firms get paid faster, improve cash flow
and automate the engagement-to-cash workflow.
Our Solutions
PAY NOW: Seamless ACH/EFT and Card Payment
Processing
+
Includes all the digital payment options you need,
with transparent fees.
+
One payment link to securely accept online credit
card, debit card, or ACH/EFT/e-Check.
+ Simple to use recurring payment schedules (US only).
+ Credit card surcharge paid by the client.
PAY OVER TIME: Enhance Cash Flow with
QuickFee Finance
+ Client financing solution exclusive to QuickFee.
+
Get paid in full every time while clients get flexibility
to pay over time (and manage their cash flow).
+
Generate client payment plans with 3, 6, 9, or
12-month terms.
+ No cost to the firm.
+
With more access to funding, clients are more likely
to buy all the services they need.
CONNECT (US only): Effective Way to Automate the
Entire Engagement-to-Cash Workflow
+
Automate your invoicing and save hours of
unbillable time.
+
Set automated email reminders to help clients
pay on time.
+
Clients get personalised invoice links so they can
pay in one click.
+
C onsolidate data, documents and delivery systems
across the entire “engagement-to-cash” workflow.
+
Direct, purpose-built integrations with leading
practice management solutions and innovative
engagement letter provider.
QuickFee’s US product strategy is
centred on three main initiatives:
1.
modernising the customer’s tech stack
2. Optimising the engagement-to-cash
workflow
3. Expanding the ability to capture more
share of the customer’s payments
+
QuickFee meets the customer where they
are by providing the latest innovations and
products that can complement their existing
practice management systems without
completely replacing them.
+
QuickFee excels at automating the
engagement-to-cash workflow with
Connect, which integrates with the leading
practice management solutions (used by
approximately 90% of target market) and
delivers game-changing value at a competitive
price point. It also integrates with Knuula,
the leading engagement letter automation
platform – giving firms an elevated end-to-end
experience with personalised payment links on
engagement letters and invoice reminders.
4
US technology strategy
Purpose-built integrations with an
‘automate everything’ mindset.
Building our platform to enable easier, more scalable integrations
with new strategic partners.
QuickFee connect rolls out new integrations in FY24.
QuickFee Connect is our cloud-based A/R automation
platform that integrates with leading practice
management solutions and automates the entire
engagement-to-cash workflow for accounting firms,
streamlining each step in the process from invoice
delivery to payment processing and reconciliation.
Unlike other Accounts Receivable (A/R) automation
platforms that primarily serve enterprise-size firms,
QuickFee Connect offers a scalable A/R solution that is
designed specifically for accounting firms starting at $1M
in annual revenue, with a competitive subscription pricing
model for firms of all sizes that is truly a disrupter in the
market. QuickFee Connect also delivers an intuitive user
experience on a consolidated platform that allows firms to
manage all their digital payments and access meaningful
insights to drive decisions.
Now accounting firms in the US using Thomson Reuters
Practice CS, Wolters Kluwer CCH Axcess Practice and
CCH ProSystem fx Practice Management along with
IRIS Practice Engine can leverage QuickFee Connect’s
direct, purpose-built integrations that demonstrate our
deep expertise in the accounting space. With QuickFee
Connect, firms can modernise and automate their billing
and payment processes, save hours of unbillable time and
admin work and get paid faster by their clients.
QuickFee Connect integration with Knuula expands our
footprint to include the entire engagement-to-cash
workflow.
Teaming up with Knuula (the leader in customisable
engagement letters at scale) created significant market
and media attention at AICPA Engage in June 2024, the
largest national accounting conference. It also expanded
QuickFee’s footprint beyond just ‘bill-to-cash’ processes
and into more areas of the ‘engagement-to-cash’
workflow.
Many accounting firms are spending hours of unbillable
time on tasks like engagement letters, invoices and
payments, all while using multiple systems and tools
to manage these important processes. The simple yet
powerful combination of QuickFee and Knuula helps firms
significantly reduce manual effort, get paid faster and
focus on the most important parts of their client work.
The integration saves precious time by automating
processes across the engagement-to-cash workflow:
firstly from engagement to payment and then
from payment to reconciliation within the practice
management system. This means that firms can
automate almost every major client touchpoint and see
cash in their accounts right from the engagement letter
stage.
These are the types of integrations that are purpose-
built to solve real customer pain points, while leveraging
our deep expertise in our core areas and partnering with
other experienced providers.
HERE’S WHAT OUR CUSTOMERS SAY:
One client used to take up to 8 months to pay... but when they used QuickFee I received payment
within 1 day. We are absolutely loving the invoice platform and the payment plan options.
— Michele Eaton, Former Controller / McSoley McCoy & Co
5
QuickFee Limited / Annual Report 2024
QuickFee’s technology strategy is based
on four key areas:
1.
Product development centered on customer needs
2. Accelerating delivery and building for scale
3. Protecting systems and data
4. Strengthening value through tech empowerment
+
QuickFee collaborates with customers on the user interface and
experience of its products, tests and monitors its products rigorously and
uses generative AI tools to write code faster.
+
QuickFee has reduced its product delivery cadence by 25%, adopted
an ‘automate everything’ mindset and built software with core pillars of
security, performance, resiliency, manageability and scalability.
+
QuickFee has focused on reducing all critical vulnerabilities in its systems,
invested in market-leading tools for security and monitoring,
implemented a disaster recovery plan and maintained a technology bill of
materials.
+
QuickFee applies creative thinking to solve problems using its own
technology, reduces reliance on third parties and spends intelligently
on people and resources.
6
In FY24, QuickFee delivered strong revenue growth
and improved profitability, whilst continuing to make
meaningful progress on its mission to be the market
leading Accounts Receivable accelerator for professional
service firms in both Australia and the US.
Total revenue was up 37% on pcp to $20.3 million, the cost
base stabilised and profitability improved to a net loss of
A$4.7m in FY24, a significant improvement on the net loss
of A$8.1 million in FY23.
Over the past year, the focus was on expanding the core
Finance product and implementing scalable systems to
deliver sustainable growth and earnings over the years
ahead.
key operational highlights
+
Signed 103 new customers across the US and
increased the average firm size of new customers
+
Improved and optimised the sales and success teams,
including new firm onboarding processes
+
New strategic partnerships with Allinial Global, IRIS
Software Group and Knuula
+
Appointment of Dave Moore as Chief Technology
Officer to drive product innovation and efficiency in
the development function
+
Completed transition to ‘direct to bank’ ACH
processing model
+
Growing transaction volumes through QuickFee
Connect
+
Opened a new office, now the US headquarters, in
Plano, Texas (previous headquarters in California)
+
Finalised A$10 million facility to support growth in the
Australian legal disbursement funding product
+ Successful completion of A$4.4m capital raise
US Commentary
In FY24, the US revenue increased by 24% to US$7.3m.
This was driven by growth in the high-margin Finance
product, the implementation of technology-enabled
sales processes, technology differentiation, improved
operational efficiency and new strategic partnerships.
The US market continued to see increased demand for
QuickFee Finance, particularly given the uncertainty in
the market driven by the election year and economic
uncertainty. Businesses want to hold on to cash and
increase cash flow, while professional service firms aim
to accelerate their Accounts Receivable collection and
look for ways to win new business. Finance TTV in FY24
was up 28% on pcp to $26.7 million and revenue yields for
QuickFee Finance were up 160 bps over pcp.
Review of operations and activities
Executing on the strategy for
transformational growth
US REVENUE (US$M)
2.1
FY20
FY21
FY22
FY23
FY24
3.3
4.6
5.9
7.3
7
QuickFee Limited / Annual Report 2024
QuickFee delivered continued solid growth in ACH with
TTV in FY24 up 18% to US$1,128 million. QuickFee’s Card
product delivered solid TTV growth in FY24, up 12% to
US$237 million in FY24 while Card revenue grew at 37%
over pcp to US$520,000.
The implementation of a new territory-based sales model
with clear sales incentives led to signing up 103 new firms
in the past year. QuickFee also successfully targeted
larger firms with higher transaction volumes, which
gives QuickFee the potential to capture more transaction
volume over time.
The implementation of a ‘technology first’ strategy
ensures a focus on building a scalable commercial
foundation, with sales and onboarding processes
that are predictable, repeatable and highly efficient and
technology solutions that enable full cycle selling
automation and AI assistance.
In FY24, QuickFee successfully completed the ‘direct
to bank’ processing model and now all ACH Pay Now
transactions are processed through the new model using
two separate banks for processing, which will deliver
more internal control over core processes, reduced
ACH processing costs and provide full ACH processing
redundancy.
In FY24, QuickFee announced new strategic partnerships
with Allinial Global, IRIS Software Group and Knuula.
+
Allinial is an award-winning association of
independent accounting and advisory firms focused
on helping their members navigate the rapidly
changing landscape as they adopt new technology,
build out their advisory practices and ensure they are
well positioned in the market. Allinial Global assists
members with the identification, adoption and
implementation of new technologies and they provide
hands-on guidance to help firms leverage emerging
technologies. By partnering with Allinial, QuickFee is
a recommended part of a firm’s tech stack to the 260
member firms that are part of Allinial.
+
IRIS Software Group (‘IRIS’) is a leading global software
provider of accounting and payroll solutions to over
5,000 customers in the US. The partnership with
IRIS has two components. Firstly, IRIS is a QuickFee
Finance customer and offers that flexible payment
option to firms seeking to buy IRIS software. Secondly,
QuickFee is integrating its Connect platform with IRIS
Practice Engine.
+
Knuula is a market-leading engagement letter
solutions provider. QuickFee successfully launched a
strategic integration with Knuula to provide QuickFee
customers with best-in-class engagement letter
functionality to complement QuickFee’s best-in-
class flexible payment options. The integration with
Knuula extends QuickFee’s reach to the beginning of
the firm’s client workflow and incorporates additional
Review of operations and activities
Continued
US PAY NOW TTV (US$Bn)
0.3
FY20
FY21
FY22
FY23
FY24
0.7
1.0
1.2
1.4
US FINANCE TTV (US$M)
13.0
FY20
FY21
FY22
FY23
FY24
15.1
16.8
20.9
26.7
8
Review of operations and activities
Continued
payments such as retainers and on account fees by
providing a payment link on the engagement letter.
The integration with Knuula provides a platform for
scalable future integrations based on performance,
security and resiliency.
QuickFee connect
In Q4 FY24, QuickFee successfully completed a pilot of the
new Connect subscription model, which launched in July
2024. In Q4 FY24, the number of invoices sent out through
Connect was up 120% quarter-on-quarter and the total
number of invoices sent through Connect in H2 FY24 was
more than 10x those sent in H1 FY24.
In FY24, the majority of the work was completed around
an additional practice management solution, Thomson
Reuters Practice CS, which joins the three existing
integrations: Wolters Kluwer CCH Axcess Practice,
Wolters Kluwer CCH ProSystem fx Practice Management
and IRIS Practice Engine.
This final integration means that we now have
integrations with the practice management solutions
used by 90% of accounting firms in our target market.
Connect delivers a compelling value proposition for
both CPA firms and their clients. CPA firms can easily
present clients with QuickFee’s full suite of Pay Now
and Pay Over Time solutions while automating the
engagement-to-cash workflow. For customers that have
adopted Connect, we have seen an increase of up to
60% in payment volume year-over-year, which further
validates the importance of Connect in accelerating
our transaction volume from both existing and new
customers.
US Growth Strategy
QuickFee’s strategy to unlock transformational growth in
the US market is centered around five key areas, which
are as follows:
+
QuickFee Finance. QuickFee Finance has revenue
yields that are approximately 25 times those of our
Pay Now offerings, all while delivering a solution to
the market unmatched by any other company in the
US. QuickFee Finance is instrumental in delivering
transformational growth.
+
QuickFee connect. QuickFee Connect is a key part of
our growth strategy. By integrating QuickFee Connect
with the most widely used practice management
solutions in the US, firms are able to unlock
automation capabilities that do not exist in the
practice management solution itself. Connect
is the key to unlocking firm revenue not captured by
QuickFee today.
+
Differentiated technology. While the benefits we
bring to firms are incredibly compelling, those alone
won’t drive transformational growth. Our goal is to
turn product and development from being only a cost
centre into a difference maker delivering world-class
solutions, which will be critical to our strategy moving
forward.
+
Strategic alliances and partnerships. If we want
to grow QuickFee at a faster rate than ever before,
acquiring firms one by one simply won’t be fast
enough. By building strong partnerships with
other leaders in the industry and having customer
champions who are excited evangelists, we can
rapidly expand our reach, drive increased awareness
and acquire new customers at scale on a one-to-
many basis.
+
A ccelerate automation. Given our goal is to drive
cost-effective growth, we are automating every
single functional area, including sales, customer
success, finance, operations and product and
development.
9
QuickFee Limited / Annual Report 2024
Review of operations and activities
Continued
AU Commentary
In FY24, the AU revenue increased by 49% to A$9.1m,
driven by continued growth in the high-margin Finance
product and increased revenue yield. Active customers
grew 31% to 51,000 (FY23: 39,000) on a stable portfolio of
active firms (FY24: 530, FY23: 525), showing that while
the market is mature, there is plenty of growth capacity
within the existing firm base as challenging economic
conditions persist.
The Australian Buy Now Pay Later product ‘Q Pay Plan’,
which provides finance to the homeowner services
market and includes the Jim’s Group Franchise
agreement, grew strongly with FY24 TTV up 100% to
A$3.4 million on pcp (FY23: A$1.7 million). This product
is making small but growing positive contributions to
revenue and EBTDA.
The success of the QuickFee brand in the Australian
market is built upon a reputation for excellent customer
service and ongoing vigorous relationship management
activities, which positions the business extremely well to
continue its growth.
In December 2023, QuickFee finalised the agreement
with Wingate Corporate Investments for a A$10 million
funding facility to support growth of the Australian legal
disbursements funding product (‘DF’) at an advance rate
of 85%. The DF business continues to grow and now
comprises approximately one third of the Australian loan
book at 30 June 2024.
AU FINANCE TTV (A$M)
49.3
FY20
FY21
FY22
FY23
FY24
30.8
38.1
46.4
55.5
AU REVENUE (A$M)
5.3
FY20
FY21
FY22
FY23
FY24
4.3
4.5
6.1
9.1
10
Financial performance
Record Finance and Pay Now Total Transaction Volumes
(TTV) in both the US and Australia drove revenue growth
of 37% to A$20.3 million for FY24 (FY23: A$14.8 million),
with revenue from the Finance product up 57% to AU$4.01
million in the US (FY23: AU$2.56 million) and up 51% to
A$7.90 million in Australia (FY23: A$5.23 million).
QuickFee is tracking towards operating profitability, with
EBTDA for H2 FY24 close to break-even at A$(0.5m) (H2
FY23: A$(2.8) million) and EBTDA for FY24 of A$(3.2)
million (FY23: A$(6.6) million).
QuickFee’s lending activities are funded by 85%-90%
borrowings and 10%-15% own funds. A combination of
growth in the loan books and the higher interest rate
environment resulted in interest expense increasing to
A$4.7 million in FY24 from A$2.6 million in FY23. The
effects of increases in the interest rates charged to
clients of professional firms made during the year will
continue to be reflected in interest revenue growth.
Other cost of sales increased to A$3.0 million (FY23:
A$2.8 million), lower than the 17% increase in US Pay Now
volumes due to reduced ACH processing costs.
Detailed analysis of the profitability of each product,
including revenue yield, Net Transaction Margins and
Gross Margins are shown in the tables on pages 14 and 15.
A breakdown of operating expense is shown on the
following page. The decrease of 1% to A$15.8 million (FY23
A$16.0 million) is a combination of further removal of non-
essential costs from the business and a non-recurring
lift in investment in product and technology: general
and administrative costs decreased by A$0.7 million and
product development expenditure increased by A$0.3
million.
In H1 FY24 the business engaged IT consultancy Growth
Acceleration Partners for a review of our technology
infrastructure, strategy and product roadmap and
after completion of the review, their Chief Innovation
Officer Dave Moore joined QuickFee as Chief Technology
Officer. In Q2 FY24 QuickFee planned a restructure
of the technology team that has resulted in reduced
product development costs from January 2024. Product
development costs reduced from H1 FY24 to H2 FY24 by
A$0.5 million, being the cost of the IT review and other
non-recurring product development costs in H1 FY24.
REVENUE
SUMMARY PROFIT AND LOSS
A$’000
FY24
FY23
YEAR-ON-YEAR
MOVEMENT
US ACH (PAY NOW)
6,382
5,345
19%
US CARD (PAY NOW)
795
564
41%
US FINANCE (PAY LATER)
4,011
2,558
57%
US BNPL
-
230
-100%
US REVENUE
11,188
8,697
29%
AU FINANCE (PAY LATER)
7,895
5,226
51%
AU PAY NOW
864
764
13%
AU BNPL
348
79
341%
AU REVENUE
9,107
6,069
50%
GROUP REVENUE
20,295
14,766
37%
A$’000
FY24
FY23
YEAR-ON-YEAR
MOVEMENT
GROUP REVENUE
20,295
14,766
+37%
GROSS PROFIT
12,627
9,361
+35%
GROSS MARGIN %
62%
63%
-2%
OTHER INCOME
5
151
-97%
OPERATING EXPENSES
(15,811)
(16,042)
-1%
EBTDA
(3,179)
(6,530)
-51%
DEPRECIATION AND
AMORTISATION
(1,118)
(1,127)
-1%
NET FINANCE COSTS
(369)
(419)
-12%
LOSS FOR THE PERIOD
(4,666)
(8,076)
-42%
11
QuickFee Limited / Annual Report 2024
Financial performance
Continued
Sales and marketing costs remained stable in FY24.
Investment in sales productivity technology and
improving the onboarding process for new firms has
accelerated the ‘time to value’ and the changes to sales
commission plans are designed to increase QuickFee
Finance volumes without impacting remuneration cost
levels.
Customer acquisition costs (which include overheads
from sales management, new business sales staff, direct
marketing and merchant onboarding costs) increased by
A$0.1 million as the US continues to invest in accelerating
revenue growth.
The low credit risk nature of QuickFee’s Finance product,
which is reinforced by the professional firms’ guarantee
of their client’s borrowings, continues to ensure minimal
levels of bad debts across the business.
Net bad debt write-offs in FY24 were A$134,000, 0.14%
of total lending (FY23: A$78,000, 0.1%). The six year
average is 0.17%. The provision for expected credit losses
at 30 June 2024 was A$146,000, 0.3% of the total loan
receivables (30 June 2023: A$219,000, 0.5%).
Other key results comprised:
+ Australian segment: gross profit of A$5.3 million and
EBTDA of A$2.4 million;
+ US segment: gross profit of A$7.4 million and positive
EBTDA of A$0.2 million, up from a loss of A$(0.7)
million in FY23);
+ Group loss after tax of A$(4.7) million for the FY24 year
(FY23: loss of A$(8.1) million), reflecting the revenue
growth and stabilised cost base in FY24, that sees
QuickFee approaching profitability.
PROFIT AND LOSS BY HALF-YEAR
OPERATING EXPENSES
A$’000
H1FY23
H2FY23
H1FY24
H2FY24
GROUP REVENUE
6,879
7,887
9,255
11,040
GROSS PROFIT
4,456
4,905
5,707
6,920
GROSS MARGIN %
65%
62%
62%
63%
OTHER INCOME
100
51
3
2
OPERATING EXPENSES
(8,246)
(7,796)
(8,385)
(7,426)
EBTDA
(3,690)
(2,840)
(2,675)
(504)
DEPRECIATION AND
AMORTISATION
(567)
(560)
(516)
(602)
NET FINANCE COSTS
(157)
(262)
(173)
(196)
LOSS FOR THE PERIOD
(4,414)
(3,662)
(3,364)
(1,302)
A$’000
FY24
FY23
YEAR-
ON-YEAR
MOVEMENT
GENERAL AND ADMINISTRATIVE
EXPENSES
6,449
7,116
-9%
SELLING AND MARKETING
EXPENSES
2,381
2,389
-
CUSTOMER ACQUISITION
EXPENSES
2,783
2,639
+5%
PRODUCT DEVELOPMENT
EXPENSES
4,198
3,898
+8%
TOTAL OPERATING
EXPENSES
15,811
16,042
-1%
12
Financial performance
Continued
Balance sheet
Net assets at 30 June 2024 were to A$8.5 million (30 June
2023: A$8.9 million).
QuickFee’s funds its lending business with asset-backed
credit facilities with Northleaf Capital Partners (Northleaf)
(up to US$40 million) and Wingate Corporate Investments
(Wingate) (up to A$10 million), advancing 90% and 85%
of certain loan receivables respectively. The completion
of the Wingate facility in December 2023 substantially
strengthened the balance sheet with immediate
additional liquidity headroom of $4.3 million and up to
A$10 million to fund the growing Australian disbursement
funding loan book.
Additionally in H2 FY24 the group successfully finalised
a A$4.4 million capital raise, including an oversubscribed
SPP of A$667,400 and a well supported placement of
A$3.75 million. The capital raised will be used to fund
further loan book growth in the US and Australia, to
support the positive momentum in the business.
The group remains well funded with adequate liquidity
and growth capacity.
The strong growth in our lending business in both the US
and Australia has led to our loan book growing 28% to
A$55.2 million at 30 June 2024, from A$43.2 million at 30
June 2023.
SEGMENT RESULTS*
AU LOAN BOOK A$M
31.0
FY23
+30%
40.4
FY24
US LOAN BOOK US $M
8.1
FY23
+22%
9.9
FY24
A$’000
FY24
FY23
YEAR-ON-YEAR
MOVEMENT
AUSTRALIA
REVENUE
9,107
6,069
+50%
GROSS PROFIT
5,250
3,251
+61%
EBTDA
2,418
236
+925%
UNITED STATES
REVENUE
11,188
8,697
+29%
GROSS PROFIT
7,377
6,110
+21%
EBTDA
217
(746)
+129%
* Unallocated and product development expenses are not included in the above segment results, please see note 1 in the financial statements for the full segment analysis.
13
QuickFee Limited / Annual Report 2024
Financial performance
Continued
cash and liquidity
The Company maintains its cash on hand and drawn
borrowings at a minimum in order to reduce interest
expense.
Cash and cash equivalents includes $6.6 million (30 June
2023: nil) of cash balances held on behalf of the group’s
customers in bank accounts that are used to process the
group’s US ACH (Pay Now) transactions. (These amounts
are also included within the firm settlements outstanding
balance in current liabilities on the balance sheet.) These
amounts arose for the first time in FY24 when the group
commenced processing ACH transactions through its in-
house ‘direct to bank’ platform, whereas it had previously
used a third party payments organisation to process ACH
transactions.
There is a further A$19.6 million of borrowing facility
headroom from the Northleaf and Wingate facilities.
Total available cash plus this growth capacity was A$26.5
million at 30 June 2024.
CASH AND LIQUIDITY
CASH AND LIQUIDITY
30 JUNE 2024
30 JUNE 2023
CASH AT BANK (A)
6.9
3.4
CASH HELD AT BANK REPRESENTING FIRMS' OUTSTANDING ACH SETTLEMENTS
6.6
-
TOTAL CASH AND CASH EQUIVALENTS
13.5
3.4
GROWTH CAPACITY (FURTHER BORROWINGS FACILITY HEADROOM) (B)
19.6
24.5
TOTAL AVAILABLE CASH PLUS GROWTH CAPACITY (A + B)
26.5
27.9
14
UNITED STATES
PRODUCT TTV PERFORMANCE
FY24
FY23
Q1
Q2
Q3
Q4
FY24
Q1
Q2
Q3
Q4
FY23
TOTAL TRANSACTION VOLUMES U$M
ACH (PAY NOW) TTV
219
298
251
360
1,128
200
252
212
289
953
GROWTH VS. PCP
10%
18%
18%
25%
18%
37%
29%
21%
11%
22%
CARD (PAY NOW) TTV
49
60
56
72
237
42
54
51
64
211
GROWTH VS. PCP
17%
11%
10%
13%
12%
20%
17%
16%
10%
15%
FINANCE (PAY LATER) TTV
5.9
7.7
6.8
6.3
26.7
4.8
5.3
5.0
5.8
20.9
GROWTH VS. PCP
23%
45%
36%
9%
28%
26%
20%
14%
38%
24%
BNPL TTV
1.1
0.1
-
-
1.2
GROWTH VS. PCP
120%
-83%
-100%
-100%
-66%
MERCHANT AND CUSTOMER NUMBERS
ACTIVE CUSTOMERS (#000s)
79
91
97
141
357
73
80
85
125
319
GROWTH VS. PCP
8%
14%
14%
13%
12%
35%
36%
20%
6%
26%
ACTIVE MERCHANTS (#)
699
725
689
705
794
646
657
667
699
756
GROWTH VS. PCP
8%
10%
3%
1%
5%
27%
19%
16%
13%
8%
PRODUCT PROFITABILITY SUMMARY
FY24
FY23
US$000s EXCEPT VOLUME
ACH
CARD
FINANCE
TOTAL
ACH
CARD
FINANCE
BNPL
TOTAL
TOTAL TRANSACTION
VOLUMES U$M
1,128
237
26.7
1,391.7
953
211
20.9
1.2
1,186.1
FINANCE REVENUE (INTEREST)
-
-
2,475
2,475
-
-
1,636
91
1,727
PAYMENTS AND OTHER REVENUE
4,182
520
155
4,857
3,599
380
94
64
4,137
TOTAL REVENUE
4,182
520
2,630
7,332
3,599
380
1,730
155
5,864
TOTAL REVENUE/VOLUME YIELD %
0.37%
0.22%
9.9%
0.53%
0.38%
0.18%
8.3%
12.9%
0.49%
DIRECT PROCESSING COSTS
(564)
-
-
(564)
(414)
-
(1)
(74)
(489)
TRANSACTION (LOSSES) AND BAD
DEBT (CHARGE-OFFS)/WRITE-BACKS
-
-
(50)
(50)
-
-
-
34
34
NET TRANSACTION MARGIN (NTM)1
3,618
520
2,580
6,718
3,185
380
1,729
115
5,409
NTM/REVENUE %
86.5%
100.0%
98.1%
91.6%
88.5%
100.0%
99.9%
74.2%
92.2%
PLATFORM, CREDIT CHECK AND
CREDIT STAFF COSTS
(123)
(25)
(283)
(431)
(155)
(34)
(360)
(15)
(564)
INTEREST EXPENSE
-
-
(1,502)
(1,502)
-
-
(687)
(4)
(691)
GROSS TRANSACTION MARGIN
(GTM)
3,495
495
795
4,785
3,030
346
682
96
4,154
GTM/REVENUE %
83.6%
95.2%
30.2%
65.3%
84.2%
91.1%
39.4%
61.9%
70.8%
15
QuickFee Limited / Annual Report 2024
AUSTRALIA
PRODUCT TTV PERFORMANCE
FY24
FY23
Q1
Q2
Q3
Q4
FY24
Q1
Q2
Q3
Q4
FY23
TOTAL TRANSACTION VOLUMES A$M
EFT & CARD (PAY NOW) TTV
18
19
16
23
76
14
15
14
19
62
GROWTH VS. PCP
29%
27%
14%
21%
23%
8%
15%
17%
36%
19%
FINANCE (PAY LATER) TTV
11.0
14.4
13.1
17.0
55.5
8.9
11.7
10.9
14.9
46.4
GROWTH VS. PCP
24%
23%
20%
14%
20%
11%
26%
40%
15%
22%
BNPL TTV
0.6
0.8
0.9
1.1
3.4
0.4
0.4
0.5
0.4
1.7
GROWTH VS. PCP
50%
100%
80%
175%
100%
100%
100%
150%
100%
113%
MERCHANT AND CUSTOMER NUMBERS
ACTIVE CUSTOMERS (#000s)
17
17
15
20
51
14
13
12
14
39
GROWTH VS. PCP
21%
31%
25%
43%
31%
8%
8%
20%
17%
11%
ACTIVE MERCHANTS (#)
406
423
411
479
530
397
410
409
424
525
GROWTH VS. PCP
2%
3%
0%
13%
1%
2%
4%
5%
1%
6%
PRODUCT PROFITABILITY SUMMARY
FY24
FY23
A$000s EXCEPT VOLUME
EFT & CARD
FINANCE
BNPL
TOTAL
EFT & CARD
FINANCE
BNPL
TOTAL
TOTAL TRANSACTION
VOLUMES A$M
76
55.5
3.4
134.9
62
46.4
1.7
110.1
FINANCE REVENUE (INTEREST)
-
7,178
287
7,465
-
4,699
67
4,766
PAYMENTS AND OTHER REVENUE
864
717
61
1,642
764
527
12
1,303
TOTAL REVENUE
864
7,895
348
9,107
764
5,226
79
6,069
TOTAL REVENUE/VOLUME YIELD %
1.1%
14.2%
10.2%
6.8%
1.2%
11.3%
4.6%
5.5%
DIRECT PROCESSING COSTS
(789)
(133)
(25)
(947)
(689)
(22)
(15)
(726)
TRANSACTION LOSSES AND BAD
DEBT CHARGE-OFFS
-
(35)
(26)
(61)
-
(130)
-
(130)
NET TRANSACTION MARGIN (NTM)
75
7,727
297
8,099
75
5,074
64
5,213
NTM/REVENUE %
8.7%
97.9%
85.3%
88.9%
9.8%
97.1%
81.0%
85.9%
PLATFORM, CREDIT CHECK AND
CREDIT STAFF COSTS
-
(506)
(16)
(522)
-
(475)
(13)
(488)
INTEREST EXPENSE
-
(2,388)
-
(2,388)
-
(1,604)
-
(1,604)
GROSS TRANSACTION MARGIN (GTM)
75
4,833
281
5,189
75
2,995
51
3,121
GTM/REVENUE %
8.7%
61.2%
80.7%
57.0%
9.8%
57.3%
64.6%
51.4%
1. Net Transaction Margin is a non-IFRS measure that is a financial metric used by management to track QuickFee’s unit economics of processing individual transactions, after deducting any
transaction losses and bad debt write-offs. It excludes fixed platform and staff costs and any interest on funding facilities, as these costs are not incurred as a result of processing individual
transactions.
2. Gross Trading Margin is calculated as statutory Gross Profit per QuickFee’s audited financial statements, less transaction losses and bad debt write-offs (which are included in general and
administrative expenses in the financial statements).
Directors’
report
For the year ended 30 June 2024
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 2024. 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 2023 to 30 June 2024 (FY24). The comparative period is from 1 July
2022 to 30 June 2023 (FY23).
Directors and company secretary
The following persons were directors of QuickFee Limited throughout the FY24 year and as at the date of this report:
• Dale Smorgon, Non-Executive Chairman;
• Bruce Coombes, Executive Director and Managing Director, Australia; and
• Michael McConnell, Non-Executive Director.
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).
Principal activities
The group has developed, and generates revenue from, a suite of payment and lending offerings via an online portal to
professional and commercial services providers. These solutions help customers of service providers (the group’s ‘firms’)
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 firms to accept payments by ACH/EFT or card
(QuickFee Pay Now), payment plan/loan (QuickFee Finance, Financing or Pay Over Time), or a ‘Buy Now, Pay Later’ instalment
plan in Australia (Q Pay Plan).
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
No dividends were declared or paid to members for the year ended 30 June 2024. The directors do not recommend that a
dividend be paid in respect of FY24.
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 6 to 15 of this annual report.
16
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 6 to 15 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
On 2 July 2024, 127,830 performance rights that had vested on 1 July 2024 under the group’s PROP were converted into
equity and 127,830 shares were issued on 2 July 2024. No other events or circumstances have arisen since 30 June 2024
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 6 to 15 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.
Dale Smorgon Non-Executive Chairman (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 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
Chair of the audit and risk committee
Member of the remuneration and nomination committee
Interests in securities
Ordinary shares
27,839,541
Share options
300,000
Performance rights
1,136,364 (vested)
17
QuickFee Limited / Annual Report 2024
Directors’
report continued
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 2022 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
Interests in securities
Ordinary shares
21,226,597
Performance rights
3,237,030 (1,200,000 unvested, 2,037,030 vested)
Michael McConnell Non-Executive Director (B.Com)
Experience and expertise
Michael McConnell is an experienced non-executive director, having served on company
boards in the US, Australia, New Zealand and Israel. He has additionally served as a CEO or
executive chairman at organisations undergoing strategic or operational transformation. As a
seasoned technology and financial services executive, Michael brings a wealth of experience
in enterprise SaaS, cybersecurity, and business communications to the QuickFee board.
For 15 years, Michael led the activist hedge fund for Shamrock, the Disney family investment
company, and an alternative asset manager of private equity and hedge funds.
Date of appointment
25 March 2022
Other current directorships
(listed)
Non-Executive Chairman of Adacel Technologies Limited (ASX:ADA), from May 2017
Non-Executive Director of OneSpan, Inc. (NASDAQ:OSPN), from June 2021
Former directorships in last
3 years (listed)
Non-Executive Director of SPS Commerce, Inc. (NASDAQ:SPSC), from March 2018 to July 2019
Non-Executive Director of Vonage Holdings Corp (NASDAQ:VG) from March 2019 to July 2022
Special responsibilities
Member of the audit and risk committee
Chair of the remuneration and nomination committee
Interests in securities
Ordinary shares
967,262
Performance rights
1,107,955 (vested)
18
Directors’
report continued
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 2024, and the numbers of meetings attended by each director were:
Full meetings of directors
Meetings of committees
Audit and risk
Remuneration
and nomination
A
B
A
B
A
B
Bruce Coombes
12
12
–
–
–
–
Dale Smorgon
12
12
2
2
1
1
Michael McConnell
12
12
2
2
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.
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
19
QuickFee Limited / Annual Report 2024
Directors’
report continued
(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.
(b) Key management personnel
The directors and other key management personnel of the group covered in this report, who served in the below positions
for the whole of the FY24 year, are:
Non-executive directors
Position
Dale Smorgon
Chair of the board
Chair of the audit and risk committee
Member of the remuneration and nomination committee
Michael McConnell
Chair of the remuneration and nomination committee
Member of the audit and risk committee
Executive directors
Position
Bruce Coombes
Managing Director, Australia
Other key management
personnel
Position
Simon Yeandle
Chief Financial Officer and Company Secretary
Jennifer Warawa
President, North America
20
Directors’
report continued
(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.
(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:
Executive remuneration
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 2024 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.
21
QuickFee Limited / Annual Report 2024
Directors’
report continued
Short-term incentives (STI plan)
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.
STI equity sacrifice plan
Employees may elect to receive part or all of their STI awards, and directors part or all of their fees, in performance rights,
with an additional 25% incentive in monetary value added. The issue price for shares awarded upon vesting of any
performance rights under this component of the company’s STI plan is the 7 day volume weighted average share price
as at 1 July each year and was calculated to be A$0.055 per share for the year ended 30 June 2024. Participants must
nominate at the beginning of the year the percentage of any remuneration for that full year that they wish to receive
in rights. Performance rights will be issued in lieu of that monetary portion of their remuneration for the full year.
A percentage of these rights equal to each person’s STI achievement percentage, or fees, will vest after the end of that
financial year and any required shareholder approval, at the stated issue price at the beginning of the year in question.
Long-term incentives (LTI plan)
QuickFee Limited has established a ‘Performance Rights and Options Plan’, adopted on IPO on 9 July 2019, amended and
approved at the company’s Annual General Meeting on 21 December 2021 and further amended on 19 September 2023.
Performance Rights and Options Plan (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 (share 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 other employees as the board
may determine from time to time. Any grants are made subject to the ASX Listing Rules, to the extent applicable.
The table below details the fixed, short- and long-term incentives in relation to executive remuneration and the link to the
group’s performance.
22
Directors’
report continued
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.
Remuneration is set competitively to:
• Recruit the best talent to QuickFee Limited to
ensure sustainable growth;
and
• Retain high performance talent.
Each executives’ individual performance
measures are specifically designed to ensure
alignment with the group’s strategic plans for
the year.
Fixed remuneration is based on:
• Role and responsibility;
• 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 share
options and performance rights to vest.
Short-term incentive
(STI) plan, being cash and
optional equity 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 or equity-based payments;
• Quantum of STI = % of performance relative
to an individual’s key performance metrics.
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 share options or performance rights to
vest.
Performance will be tested at the end of each
vesting period.
Ensures a direct link between the LTI and the
creation of shareholder value.
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-executive directors’ 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.
23
QuickFee Limited / Annual Report 2024
Directors’
report continued
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, Dale Smorgon’s annual director fee for FY24 was A$100,000 (FY23:
A$100,000), effective from his appointment to the position. This fee also covered his role as chair/member of the audit and
risk committee and as member of the remuneration and nomination committee. Michael McConnell received an annual fee
of A$65,000 for FY24 (FY23: A$65,000) for his role as a non-executive director, chair of the remuneration and nomination
committee, as well as member of the audit and risk committee.
Directors may also be reimbursed for expenses properly incurred by them in connection with the affairs of the group,
including travel and other expenses in attending to the group’s affairs. The directors’ fees do not include a commission on,
or a percentage of, profits or income.
If a director renders or is called on to perform extra services or to make any special exertions in connection with the affairs
of the group, the board may arrange for special remuneration to be paid to that director, either in addition to or in
substitution for that director’s remuneration set out above.
There are no contractual redundancy or retirement benefit schemes for non-executive directors, other than statutory
superannuation contributions (where applicable).
Statutory performance indicators
We aim to align our executive remuneration to our strategic and business objectives and the creation of shareholder wealth.
The table below shows measures of the group’s financial performance and earnings per share information since FY20.
However, these are not necessarily consistent with the measures used in determining the variable amounts of remuneration
to be awarded to KMPs. Consequently, there may not always be a direct correlation between the statutory key performance
measures and the variable remuneration awarded.
FY24
FY23
FY22
FY21
FY20
Loss attributable to the ordinary equity
holders of the company (A$’000)
4,666
8,076
13,500
8,546
3,827
Basic and diluted loss per share
attributable to the ordinary equity holders
of the company (cents)
1.7
3.0
5.9
4.0
2.5
24
Directors’
report continued
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 both revenue growth and cost
containment, to reach profitability, coupled with achieving key commercial milestones in order to generate further
shareholder value.
(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 2024.
Short-term benefits
Post-
employ-
ment
benefits
Long-
term
benefits
Share-based
payments
FY24
Cash
salary
and fees
A$
Cash
bonus
A$
Perfor-
mance
Rights2
A$
Non-
mone-
tary
benefitS
A$
Annual
leave
A$
Super-
annu-
ation
A$
Long
service
leave
A$
Share
options
A$
Perfor-
mance
rights
A$
Total
A$
Non-executive
directors
Dale Smorgon
50,000
–
14,200
–
–
–
–
–
–
64,200
Michael McConnell
16,250
–
13,845
–
–
–
–
–
–
30,095
Executive directors
Bruce Coombes
368,126
141,448
25,455
–
(21,480)
25,292
8,597
–
2,005
549,443
Other KMP
Simon Yeandle
308,896
27,908
10,528
–
15,605
25,292
5,468
–
2,781
396,478
Jennifer Warawa
533,862
93,127
–
10,715
(5,409)
12,234
–
–
9,271
653,800
Total compensation 1,277,134
262,483
64,028
10,715
(11,284)
62,818
14,065
–
14,057 1,694,016
25
QuickFee Limited / Annual Report 2024
Directors’
report continued
The table below details remuneration of key management personnel based on the policies previously discussed for the
year ended 30 June 2023.
Short-term benefits
Post-
employ-
ment
benefits
Long-
term
benefits
Share-based
payments
Fy23
Cash
salary
and fees
A$
Cash
bonus
a$
Perfor-
mance
Rights2
A$
Non-
monet-
ary
benefits
a$
annual
leave
a$
Super-
annu-
ation
a$
Long
service
leave
a$
Share
options
a$
Perfor-
mance
rights
a$
Total
a$
Non-executive
directors
Dale Smorgon
85,417
60,000
–
–
–
–
–
18,193
–
163,610
Michael McConnell
16,928
–
23,698
–
–
–
–
–
–
40,626
Barry Lewin3
41,667
–
–
–
–
–
–
(39,127)
–
2,540
Executive directors
Bruce Coombes
368,126
97,222
32,677
–
18,671
25,292
9,219
340
8,132
559,679
Other KMP
Eric Lookhoff4
138,011
–
–
1,916
(3,712)
21,161
–
–
–
157,376
Simon Yeandle
308,896
63,971
16,918
–
9,483
25,292
3,461
–
64,285
492,306
Jennifer Warawa
308,592
75,795
–
5,330
23,256
8,283
–
–
59,681
480,937
Total compensation 1,267,637
296,988
73,293
7,246
47,698
80,028
12,680
(20,594)
132,098 1,897,074
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.
2. Performance rights were paid as a short-term benefit as part of the STI equity sacrifice plan described in section (d)
‘Remuneration payments and link between performance and reward’ above. The amounts shown here are the
fair value of rights awarded and expensed in the year. Refer to note 16 ‘share-based payments’ in the financial report
for more details.
3. Barry Lewin retired on 21 November 2022.
4. Eric Lookhoff resigned on 5 August 2022.
26
Directors’
report continued
(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
2024.
Name
Dale Smorgon
Title
Non-executive Chairman
Details
Base salary of A$100,000, inclusive of statutory superannuation in FY24, reviewed annually by the
remuneration and nomination committee. FY24 remuneration remained the same as FY23. 50% of
amounts received were compensated in performance rights at their fair value. Contract duration is
unspecified.
Name
Michael McConnell
Title
Non-executive Director
Details
Base salary of A$65,000, inclusive of statutory superannuation in FY24, reviewed annually by the
remuneration and nomination committee. FY24 remuneration remained the same as FY23. 75% of
amounts received were compensated in performance rights at their fair value. Contract duration is
unspecified.
Name
Bruce Coombes
Title
Executive Director and Managing Director, Australia
Details
Base salary of A$394,309, inclusive of statutory superannuation in FY24, STI (at 100% achievement)
of A$179,259, inclusive of statutory superannuation, reviewed annually by the remuneration and
nomination committee with a three-month termination notice by either party. FY24 remuneration
remained the same as FY23. Contract duration is unspecified.
Name
Jennifer Warawa
Title
President, North America
Details
Base salary of US$350,000 in FY24, STI (at 100% achievement) of US$175,000, reviewed annually by the
remuneration and nomination committee with a four-month termination notice by either party. FY24
remuneration remained the same as FY23. Contract duration is unspecified.
Name
Simon Yeandle
Title
Chief Financial Officer
Details
Base salary of A$336,396, inclusive of statutory superannuation in FY24, STI (at 100% achievement)
of A$120,785, inclusive of statutory superannuation, reviewed annually by the remuneration and
nomination committee with a three-month termination notice by either party. FY24 remuneration
remained the same as FY23. Contract duration is unspecified.
27
QuickFee Limited / Annual Report 2024
Directors’
report continued
(g) Additional statutory information
(i) Relative proportions of fixed vs variable remuneration expense
The following table shows the relative proportions of remuneration that are linked to performance and those that are fixed,
based on the amounts disclosed as statutory remuneration expense on page 25 above:
Fixed remuneration
At risk STI
At risk LTI
NAme
FY24
%
FY23
%
FY24
%
FY23
%
FY24
%
FY23
%
Dale Smorgon
100
52
–
37
–
11
Bruce Coombes
69
75
31
23
–
2
Michael McConnell
100
100
–
–
–
–
Barry Lewin
–
52
–
–
–
48
Eric Lookhoff
–
100
–
–
–
–
Simon Yeandle
89
71
10
16
1
13
Jennifer Warawa
85
72
14
16
1
12
(ii) Performance based remuneration granted and forfeited during the year
The following tables show for each KMP how much of their STI bonus was awarded and how much was forfeited during the
period. It also shows the value of share options and performance rights that were granted and exercised during the period.
The number of share options and performance rights and percentages vested/forfeited for each grant are disclosed in
sections (iii) and (iv) below.
Name
Total STI bonus
LTI performance rights
FY24
Total
opportunity
at 100%
A$
Awarded
%
Forfeited
%
% elected
to be paid
in cash
% elected
to be paid in
perfor-
mance
rights
Perfor-
mance
rights
value
granted1
A$
Perfor-
mance
rights
value
vested and
exercised2
A$
Dale Smorgon
–
–
–
–
–
–
–
Bruce Coombes3
179,259
129
–
79
50
2,485
–
Michael McConnell
–
–
–
–
–
–
–
Simon Yeandle3
120,785
46
54
23
23
5,696
27,611
Jennifer Warawa3
266,923
35
65
35
–
18,987
40,500
28
Directors’
report continued
Name
Total STI bonus
LTI
Options
LTI performance
rights
FY23
Total
oppor-
tunity
A$
Awarded
%
Forfeited
%
% elected
to be paid
in cash
% elected
to be paid
in perfor-
mance
rights
Share
options
lapsed
A$
Perfor-
mance
rights
value
granted1
A$
Perfor-
mance
rights
value
vested and
exercised2
A$
Dale Smorgon
–
–
–
–
–
18,193
–
–
Bruce Coombes3
179,259
75
25
50
50
340
9,514
–
Michael McConnell
–
–
–
–
–
–
–
–
Barry Lewin
–
–
–
–
–
(39,127)
–
–
Eric Lookhoff3
–
–
100
–
–
–
–
–
Simon Yeandle3
120,785
56
44
50
50
–
9,608
102,264
Jennifer Warawa3
151,590
50
50
100
–
–
116,352
–
Notes:
1. The value at grant date calculated in accordance with AASB 2 Share-based Payment of share options and performance
rights granted during the year as part of remuneration.
2. The value at the exercise date of performance rights that were granted as part of remuneration and were exercised during
the year has been determined as the intrinsic value of the performance rights at the exercise date.
3. Bonuses were granted for meeting financial and operational targets.
(iii) Reconciliation of share options, performance rights and ordinary shares held by KMP
(a) Share options
Balance at
the start of
the year
Expired/
forfeited
Balance
at end of
the year
Vested and
exercisable
at the end of
the year
Dale Smorgon1
300,000
–
300,000
300,000
Bruce Coombes2
3,000,000
3,000,000
–
–
Michael McConnell
–
–
–
–
Simon Yeandle
–
–
–
–
Jennifer Warawa
–
–
–
–
29
QuickFee Limited / Annual Report 2024
Directors’
report continued
(b) Performance rights
Balance at
the start of
the year
Granted as
remuner-
ation
Vested
Expired/
forfeited
UNVESTED
Balance
at end of
the year
Vested and
exer-
cisable at
the end of
the year4
Dale Smorgon4
–
1,136,364
(1,136,364)
–
–
1,136,364
Bruce Coombes4, 5
500,000
2,737,030
(2,037,030)
–
1,200,000
2,037,030
Michael McConnell4
–
1,107,955
(1,107,955)
–
–
1,107,955
Simon Yeandle3, 4, 5
1,139,150
1,972,557
(1,145,594)
(738,283)
1,227,830
634,274
Jennifer Warawa5
3,000,000
1,000,000
(750,000)
–
3,250,000
–
(c) Ordinary shares
Balance at
the start of
the year
Conversion
on vesting
and
exercise of
performance
rights
Other
changes6
Balance at
end of the
year
Dale Smorgon
27,839,451
–
–
27,839,451
Bruce Coombes
25,892,827
1,333,770
(6,000,000)
21,226,597
Michael McConnell
–
967,262
–
967,262
Simon Yeandle
1,283,600
1,185,343
49,979
2,518,922
Jennifer Warawa
500,000
750,000
–
1,250,000
Notes:
1. Dale Smorgon was granted 300,000 share options each (QFEAG), approved by shareholders at an extraordinary general
meeting (EGM) of the company on 23 July 2020. These share options expire on 23 July 2025 and comprise three
tranches of 100,000 share options with an exercise price of A$0.50. T1, T2 and T3 share options vested on 30 June 2021,
2022 and 2023 respectively, contingent on continued employment at each vesting date.
2. Bruce Coombes, the group’s then CEO was granted 3,000,000 share options (QFEAB) on 9 July 2019. These share
options expired on 9 July 2023 without exercise.
3. 511,320 performance rights granted to Simon Yeandle vested on 1 July 2023 and 8 October 2023.
4. 1,136,364, 1,107,955, 2,037,030 performance rights were issued to Dale Smorgon, Michael McConnell and Bruce Coombes
respectively on 29 November 2023 and 1,372,557 to Simon Yeandle on 6 October 2023, under the company’s Short Term
Incentive (STI) Equity Sacrifice Plan (STIESP) for directors and employees. Under this plan, directors and employees
may elect to receive part or all of their annual fees or Short Term Incentive awards in shares, issued at the 7 day VWAP
as at 1 July 2023, together with a 25% incentive bonus also paid in shares at the same price. The issue price for shares
awarded under this component of the company’s STI plan has been calculated to be $0.055 per share. All performance
rights issued to Dale Smorgon, Michael McConnell and Bruce Coombes and 634,274 issued to and Simon Yeandle vested
under this scheme; these rights will convert to ordinary shares that are yet to be issued.
5. 700,000, 600,000 and 1,000,000 performance rights were granted to Bruce Coombes, Simon Yeandle and Jennifer
Warawa respectively during the year, as part of their LTI remuneration. Details of terms and conditions are set out in
section (v)(b) below.
6. Other changes in ordinary shares held by KMP include participation in share placements and on-market acquisitions/
disposals.
30
Directors’
report continued
(iv) Share options, performance rights and ordinary shares granted as remuneration
during or since the end of the year
(a) Share options
Directors and KMP
No share options were granted to directors and KMP as remuneration during or since the end of the year.
No share options were granted to officers who are among the five highest remunerated officers of the company and the
group, but are not KMP and hence not disclosed in the remuneration report.
(b) Performance rights
All performance rights granted as remuneration during or since the end of the year are set out below:
Directors and KMP
Holder
Grant
date
Issue
date
Vesting
date
Granted
Vested
Expired/
forfeited
Balance
at end of
the year
Bruce Coombes
29 Nov 2023
29 Nov 2023
31 Jan 2024 –
30 Jun 2026
350,000
–
–
350,000
Bruce Coombes
29 Nov 2023
29 Nov 2023
31 Jan 2025 –
30 Jun 2026
350,000
–
–
350,000
Dale Smorgon
29 Nov 2023
29 Nov 2023
30 Jun 2024
1,136,364
(1,136,364)
–
–
Bruce Coombes
29 Nov 2023
29 Nov 2023
30 Jun 2024
2,037,030
(2,037,030)
–
–
Michael McConnell
29 Nov 2023
29 Nov 2023
30 Jun 2024
1,107,955
(1,107,955)
–
–
Simon Yeandle
6 Oct 2023
9 Oct 2023
31 Jan 2024 –
30 Jun 2026
300,000
–
–
300,000
Simon Yeandle
6 Oct 2023
9 Oct 2023
31 Jan 2025 –
30 Jun 2026
300,000
–
–
300,000
Simon Yeandle
6 Oct 2023
9 Oct 2023
30 Jun 2024
1,372,557
(634,274)
(738,283)
–
Jennifer Warawa
6 Oct 2023
9 Oct 2023
31 Jan 2024 –
30 Jun 2026
500,000
–
–
500,000
Jennifer Warawa
6 Oct 2023
9 Oct 2023
31 Jan 2025 –
30 Jun 2026
500,000
–
–
500,000
Total
7,953,906
(4,915,623)
(738,283)
2,300,000
For terms and conditions of each grant of performance rights see section (v) below.
Other employees
No performance rights were granted to officers who are among the five highest remunerated officers of the company and
the group, but are not KMP and hence not disclosed in the remuneration report.
31
QuickFee Limited / Annual Report 2024
Directors’
report continued
(v) Terms and conditions of share-based payment arrangements
(a) Performance rights
The terms and conditions of each grant of performance rights affecting KMP remuneration in the current or a future
reporting period are as follows:
Grant date
(CODE QFEAM)
Name
Vesting and
exercise date
Expiry date
Exercise
price
A$
Value
per
Perfor-
mance
right at
grant
date
A$
Number
of
Perfor-
mance
rights
granted
Vested at
the end
of the
year
%
(number)
STI grants
1 Nov 2022
Simon Yeandle3
30 Jun 2024
–
0.055
0.017
1,372,557
46%
(634,274)
29 Nov 2023
Dale Smorgon3
30 Jun 2024
–
0.055
0.013
1,136,364
100%
29 Nov 2023
Michael McConnell3
30 Jun 2024
–
0.055
0.013
1,107,955
100%
29 Nov 2023
Bruce Coombes3
30 Jun 2024
–
0.055
0.013
2,037,030
100%
LTI grants
8 Nov 2021
Simon Yeandle
1 Jul 2023
–
–
0.20
127,830
100%
8 Nov 2021
Simon Yeandle
1 Jul 2024
–
–
0.20
127,830
–
8 Nov 2021
Simon Yeandle
8 Oct 2023
–
–
0.20
383,490
100%
1 Nov 2022
Simon Yeandle1
31 Jan 2023 –
30 Jun 2025
30 Jun 2025
–
0.067
250,000
–
1 Nov 2022
Simon Yeandle2
31 Jan 2024 –
30 Jun 2025
30 Jun 2025
–
0.067
250,000
–
21 Nov 2022
Bruce Coombes1
31 Jan 2023 –
30 Jun 2025
30 Jun 2025
–
0.067
250,000
–
21 Nov 2022
Bruce Coombes2
31 Jan 2024 –
30 Jun 2025
30 Jun 2025
–
0.067
250,000
–
28 Nov 2022
Jennifer Warawa1
31 Jan 2023 –
30 Jun 2025
30 Jun 2025
–
0.062
750,000
–
28 Nov 2022
Jennifer Warawa2
31 Jan 2024 –
30 Jun 2025
30 Jun 2025
–
0.062
750,000
–
28 Nov 2022
Jennifer Warawa
28 Nov 2023
–
–
0.062
750,000
–
28 Nov 2022
Jennifer Warawa
28 Nov 2024
–
–
0.062
750,000
–
6 Oct 2023
Simon Yeandle4
31 Jan 2024 –
30 Jun 2026
30 Jun 2026
–
0.012
300,000
–
6 Oct 2023
Simon Yeandle5
31 Jan 2025 –
30 Jun 2026
30 Jun 2026
–
0.007
300,000
–
29 Nov 2023
Bruce Coombes4
31 Jan 2024 –
30 Jun 2026
30 Jun 2026
–
0.010
350,000
–
32
Directors’
report continued
Grant date
(CODE QFEAM)
Name
Vesting and
exercise date
Expiry date
Exercise
price
A$
Value
per
Perfor-
mance
right at
grant
date
A$
Number
of
Perfor-
mance
rights
granted
Vested at
the end
of the
year
%
(number)
29 Nov 2023
Bruce Coombes5
31 Jan 2025 –
30 Jun 2026
30 Jun 2026
–
0.006
350,000
–
6 Oct 2023
Jennifer Warawa4
31 Jan 2024 –
30 Jun 2026
30 Jun 2026
–
0.012
500,000
–
6 Oct 2023
Jennifer Warawa5
31 Jan 2025 –
30 Jun 2026
30 Jun 2026
–
0.007
500,000
–
Notes:
All performance rights vest contingent on continued employment at the vesting date. Those performance rights with only
tenure-based vesting conditions are only granted after careful consideration by the board that (a) the terms are
appropriate and equitable and will satisfy ASX Listing Rules 6.1 and 12.5; (b) a grant of equity instruments rather than cash
is more commonplace in the industry in which the company operates; and (c) the grant will better align the recipients’
interests with that of the company and its shareholders.
Further vesting conditions for certain performance rights are set out below.
1. Vesting is contingent upon the first date after 31 January 2023 that a 30day Volume Weighted Average Price of the
company’s shares (ASX:QFE) (VWAP) of 15 cents is achieved.
2. Vesting is contingent upon the first date after 31 January 2024 that a 30day Volume Weighted Average Price of the
company’s shares (ASX:QFE) (VWAP) of 20 cents is achieved.
3. Vesting is contingent on individual fees/STI achievement under the company’s Short Term Incentive (STI) Equity
Sacrifice Plan (STIESP) for directors and employees. See note 4 under section g (iii) above for more details. The
expected monetary amount of cash STI or fees sacrificed (deemed exercise price) is taken into account in assessing
the fair value of these performance rights.
4. Vesting is contingent upon the first date after 31 January 2024 that a 30day Volume Weighted Average Price of the
company’s shares (ASX:QFE) (VWAP) of 15 cents is achieved.
5. Vesting is contingent upon the first date after 31 January 2025 that a 30day Volume Weighted Average Price of the
company’s shares (ASX:QFE) (VWAP) of 20 cents is achieved.
The number of share options and performance rights over ordinary shares in the company provided as remuneration to
key management personnel is shown in the section g(iii) titled ‘reconciliation of share options, performance rights and
ordinary shares held by KMP’ above. The share options and performance rights carry no dividend or voting rights. When
exercisable, each share option or performance right is convertible into one ordinary share of QuickFee Limited.
(vi) Other transactions with key management personnel
There were no other transactions with key management personnel during the course of the year.
33
QuickFee Limited / Annual Report 2024
Directors’
report continued
(vii) Voting of shareholders at last year’s annual general meeting
QuickFee Limited received more than 99% of ‘yes’ votes on its remuneration report for FY23. 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 —
34
Directors’
report continued
Shares under option, performance rights and deferred shares
(a) Unissued ordinary shares
Unissued ordinary shares of QuickFee Limited under option at the date of this report are as follows:
Share options
Grant date
Code
Expiry date
Exercise
price
Number of
unissued
ordinary
shares
under option
18 Mar 2020
QFEAD
30 Jun 2025
A$ 0.500
533,333
23 Jul 2020
QFEAG
23 Jul 2025
A$ 0.500
500,000
26 May 2021
QFEAH
31 Jan 2026
A$ 0.580
100,000
20 Aug 2021
QFEAI
30 Jun 2026
A$ 0.280
495,852
20 Aug 2021
QFEAJ
30 Jun 2026
A$ 0.319
495,827
20 Aug 2021
QFEAK
30 Jun 2026
A$ 0.344
495,827
20 Aug 2021
QFEAL
30 Jun 2026
A$ 0.382
495,826
27 Jun 2022
QFEAQ
30 Jun 2026
A$ 0.280
75,000
27 Jun 2022
QFEAR
30 Jun 2026
A$ 0.319
75,000
27 Jun 2022
QFEAS
30 Jun 2026
A$ 0.344
75,000
27 Jun 2022
QFEAT
30 Jun 2026
A$ 0.382
75,000
1 Nov 2022
QFEAP
30 Jun 2027
A$0.080
297,936
1 Nov 2022
QFEAU
30 Jun 2027
A$0.091
297,905
1 Nov 2022
QFEAV
30 Jun 2027
A$0.099
297,905
1 Nov 2022
QFEAW
30 Jun 2027
A$0.110
297,919
5 Sep 2023
QFEAX
30 Jun 2028
A$0.062
396,891
5 Sep 2023
QFEAY
30 Jun 2028
A$0.071
396,870
5 Sep 2023
QFEAZ
30 Jun 2028
A$0.076
396,867
5 Sep 2023
QFEAAA
30 Jun 2028
A$0.085
396,872
Total share options
6,195,830
35
QuickFee Limited / Annual Report 2024
Directors’
report continued
Shares under option, performance rights and deferred shares continued
(a) Unissued ordinary shares continued
Performance rights
Grant date
Code
Vesting/
expiry date
Exercise
price
Number of
unissued
ordinary
shares
under option
8 Nov 2021
QFEAM
01 Jul 2024
A$–
127,830
1 Nov 2022
QFEAM
31 Jan 2023 – 30 Jun 2025
A$–
750,000
1 Nov 2022
QFEAM
31 Jan 2024 – 30 Jun 2025
A$–
750,000
21 Nov 2022
QFEAM
31 Jan 2023 – 30 Jun 2025
A$–
250,000
21 Nov 2022
QFEAM
31 Jan 2024 – 30 Jun 2025
A$–
250,000
28 Nov 2022
QFEAM
31 Jan 2023 – 30 Jun 2025
A$–
750,000
28 Nov 2022
QFEAM
31 Jan 2024 – 30 Jun 2025
A$–
750,000
28 Nov 2022
QFEAM
28 Nov 2024
A$–
750,000
6 Oct 2023
QFEAM
31 Jan 2024 – 30 Jun 2026
A$–
1,700,000
6 Oct 2023
QFEAM
31 Jan 2025 – 30 Jun 2026
A$–
1,700,000
29 Nov 2023
QFEAM
31 Jan 2024 – 30 Jun 2026
A$–
350,000
29 Nov 2023
QFEAM
31 Jan 2025 – 30 Jun 2026
A$–
350,000
6 Oct 203
QFEAM
30 June 2024
A$-
728,876
29 Nov 2023
QFEAM
30 June 2024
A$-
4,281,349
Total performance rights
13,488,055
Total
19,683,885
Notes:
Included in these were share options and performance rights granted as remuneration to the directors and other key
management personnel during the year. Details of share options and performance rights granted are disclosed in sections
(g) (iii) to (v) of the remuneration report above.
No share option or performance right holder has any right under the share options or performance rights to participate in
any other share issue of the company or any other entity.
(b) Shares issued on the exercise of share options and performance rights
1,452,506 ordinary shares of QuickFee Limited were issued during the year ended 30 June 2024 on the exercise of share
options and performance rights granted. 127,830 ordinary shares of QuickFee Limited were issued after the end of the year
ended 30 June 2024 and prior to the date of this report on the exercise of share options and performance rights granted.
36
Directors’
report continued
Material business risks
The group is a risk-conscious organisation with integrated risk management frameworks and policies throughout every
part of the organisation. The material business risks faced by the group that are likely to have an effect on the future
activities and financial prospects of the group are outlined below:
Competition risks
The group operates in a competitive industry and there is a risk of new providers or existing competitors delivering a
comparatively superior product. If a larger, better funded finance provider markets or creates a comparable product at a
lower price point, this could negatively impact the group’s growth in the US market or could diminish the group’s market
share in the Australian market. This risk is mitigated by the group’s unique position in the market relative to its competitors
and substantial investment in its relationship management function that strengthens customers’ loyalty to QuickFee.
Client and firm credit risk
There is a risk of potential failure of clients or firms to meet their obligations at the appropriate time with respect to loans
granted to them. This risk is mitigated through firms guaranteeing repayment of the principal loaned in full should a client
fail to meet its obligations. However, firms are also subject to repayment risk in the same manner as clients. The group
continues to monitor and manage counterparty risk through internal decisioning capabilities, controls and protocols,
including its credit policies, which are regularly reviewed to ensure they remain effective.
Company financing risk
A loss of, or adverse impact to the group’s funding sources, could limit its ability to write new loans. This includes an
inability to extend or refinance expiring facilities, an inability to set up new funding platforms to fund growth in loans, or an
increase in funding costs which reduces the group’s revenues or cash flow which could materially impact on the
Company’s business, operating and financial performance and growth. This risk is mitigated by QuickFee’s management and
board working with new and existing debt providers, as well as investors and investment banks (domestically and abroad)
to identify the most appropriate funding solutions for the current and future business requirements. QuickFee continually
monitors its existing cash, liquidity and funding position to ensure that sufficient funds are available for every day
operations.
Revenue and growth risk
The group’s ability to increase revenue and achieve profitability is dependent on the ability to profitably scale the business,
which in turn is dependent on achieving a high level of sign-ups of new firms and growing transaction volumes from
existing firms, across all its product offerings. There is no guarantee that all or any of the group’s growth strategies will be
successfully implemented or deliver the expected returns. Transaction volumes of its lending products might also be
impacted by general economic conditions or any regulatory changes which impact its lending or payments operations.
37
QuickFee Limited / Annual Report 2024
Directors’
report continued
QuickFee regularly reviews its strategies and plans that underpin them. The group plans to deliver continued market share
growth in the professional services vertical through three strategic levers. Firstly, deliver organic growth through an
improved sales approach and execution of comprehensive digital marketing strategy, enabling accelerated new customer
acquisition, substantial growth in the Finance product, and increased penetration of existing firms through Connect
adoption. Secondly, an enhanced focus on, and acceleration of, the group’s strategic alliances and partnerships strategy to
achieve exponential growth by leveraging ‘one to many’ relationships through deeper engagement with accounting firm
alliances and associations. Lastly, to drive cost-effective product development with a narrow focus on expanding Connect
integrations to reach more practice management systems, unlocking the US accounting market for QuickFee’s payment
solutions and enhancing firm experience through an improved product UX/UI.
People risk
The strategic management of the group depends substantially on its senior management and its key personnel. Failure to
attract or retain existing key management personnel could have an adverse impact on the group. QuickFee rewards its
employees competitively through its remuneration governance processes and is continually improving its culture through
the use of enablement programs like engagement surveys, to ensure management has a holistic view on employee
satisfaction and is aware of any potential risks that may arise.
Privacy and data security risks
As a technology-focused lending and payments business, the group collects and holds a range of personal and
commercial information about customers and partners. There is a risk that QuickFee’s systems, or those of its third-party
service providers, may be impacted by external malicious attacks. Compliance with privacy and data security legislation
relating to managing information security and safeguarding customer data remains a paramount key consideration and
impacts the way the group approaches everything it does and the decisions it makes. The group takes the storage of this
data very seriously and place the highest priority on ensuring its security, deploying extensive strategies to strengthen its
systems security and uses a mix of governance, technical and procedural controls to prevent, detect and manage any
cyber-attacks or unauthorised access to data it holds.
Exchange rate risk
Volatility in exchange rates can impact the group’s ability to maintain or grow margins, however, to a significant extent the
group’s business currently enjoys natural hedges: the revenue that the group obtains in a particular foreign currency
closely matches the expenses it incurs in that currency (such as US dollars). The directors believe that natural hedges
presently mitigate any exchange rate volatility risk for the group to an economically acceptable level.
Regulatory risk
The group is subject to a range of laws, regulations, and industry compliance requirements in the jurisdictions in which it
conducts business. The financial services sector in both Australia and the United States continues to undergo substantial
political and regulatory scrutiny and potential regulatory change. Future changes to law or regulation, or potential changes
to law or regulation which oblige industry participants to proactively change their business models, alter their funding
arrangements or change their pricing disclosure could have a material adverse effect on the group’s, financial position,
operating and financial performance and/or growth. The group’s legal and compliance teams proactively ensure effective
management of all obligations and continuously monitor the legislative and regulatory landscape and industry bodies and
regulators for relevant changes.
38
Directors’
report continued
Insurance of officers and indemnities
(a) Insurance of officers
During the financial year, QuickFee Limited paid a premium of A$106,204 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) Indemnity of auditors
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. No non-audit services were provided.
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 41.
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 and financial statements have been rounded off to the nearest thousand
dollars, or in certain cases the nearest dollar.
39
QuickFee Limited / Annual Report 2024
Directors’
report continued
This report is made in accordance with a resolution of directors.
Dale Smorgon
Non-Executive Chairman
27 August 2024
40
Level 20, 181 William Street, Melbourne VIC 3000
+61 3 9824 8555
vic.info@williambuck.com
williambuck.com.au
William Buck is an association of firms, each trading under the name of William Buck
across Australia and New Zealand with affiliated offices worldwide.
Liability limited by a scheme approved under Professional Standards Legislation.
Lead Auditor’s Independence Declaration under Section 307C of
the Corporations Act 2001
To the directors of QuickFee Limited
As lead auditor for the audit of QuickFee Limited for the year ended 30 June 2024, I declare that, to the
best of my knowledge and belief, 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.
This declaration is in respect of QuickFee Limited and the entities it controlled during the year.
William Buck Audit (Vic) Pty Ltd
ABN 59 116 151 136
A. A. Finnis
Director
Melbourne, 27 August 2024
Auditor’s
independence declaration
For the year ended 30 June 2024
41
QuickFee Limited / Annual Report 2024
Corporate
governance statement
For the year ended 30 June 2024
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 FY24 corporate governance statement is dated as at 30 June 2024 and reflects the corporate
governance practices in place throughout FY24. The FY24 corporate governance statement was approved
by the board on 27 August 2024. 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/.
42
QuickFee
Limited
ABN 93 624 448 693
Annual financial report — 30 June 2024
Contents
Financial statements
Consolidated statement of profit or loss and other comprehensive income
44
Consolidated statement of financial position
45
Consolidated statement of changes in equity
46
Consolidated statement of cash flows
47
Notes to the financial statements
48
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 27 August 2024. The directors have the power to
amend and reissue the financial statements.
43
QuickFee Limited / Annual Report 2024
Consolidated statement of
profit or loss and other
comprehensive income
For the year ended 30 June 2024
Notes
FY24
$’000
FY23
$’000
Revenue
2,3
20,295
14,766
Interest expense
2(a)
(4,676)
(2,629)
Cost of sales
4(a)
(2,992)
(2,776)
Gross profit
12,627
9,361
Other income
5
151
General and administrative expenses
4(a)
(6,449)
(7,116)
Depreciation and amortisation
4(a)
(1,118)
(1,127)
Selling and marketing expenses
4(a)
(2,381)
(2,389)
Customer acquisition expenses
4(a)
(2,783)
(2,639)
Product development expenses
4(a)
(4,198)
(3,898)
Operating loss
(4,297)
(7,657)
Net finance costs
4(b)
(369)
(419)
Loss before income tax
(4,666)
(8,076)
Income tax expense
5
–
–
Loss for the period
(4,666)
(8,076)
Other comprehensive income
Items that may be reclassified to profit or loss:
Exchange differences on translation of foreign operations
(39)
168
Total comprehensive loss for the period
(4,705)
(7,908)
Cents
Cents
Loss per share for loss attributable to the ordinary equity holders of the company:
Basic and diluted loss per share
18
(1.7)
(3.0)
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with
the accompanying notes.
44
Consolidated statement
of financial position
As at 30 June 2024
Notes
30 June 2024
$’000
30 June 2023
$’000
ASSETS
Current assets
Cash and cash equivalents
6(a)
13,551
3,387
Loan receivables
6(a)
54,004
42,146
Trade and other receivables
761
576
Other current assets
761
667
Total current assets
69,077
46,776
Non-current assets
Loan receivables
6(a)
1,198
1,044
Plant and equipment
97
123
Right-of-use assets
313
114
Other non-current assets
63
56
Total non-current assets
1,671
1,337
Total assets
70,748
48,113
LIABILITIES
Current liabilities
Firm settlements outstanding
6(a)
10,804
3,520
Trade and other payables
6(b)
1,675
2,310
Borrowings
6(c)
48,344
32,200
Lease liabilities
186
94
Employee benefit obligations
756
791
Total current liabilities
61,765
38,915
Non-current liabilities
Borrowings
6(c)
285
199
Lease liabilities
173
43
Employee benefit obligations
17
11
Total non-current liabilities
475
253
Total liabilities
62,240
39,168
Net assets
8,508
8,945
EQUITY
Contributed equity
7(a)
51,563
47,241
Other reserves
7(b)
956
1,049
Accumulated losses
(44,011)
(39,345)
Total equity
8,508
8,945
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
45
QuickFee Limited / Annual Report 2024
Consolidated statement
of changes in equity
For the year ended 30 June 2024
ATTRIBUTABLE TO OWNERS
OF QUICKFEE LIMITED
Notes
Contributed
equity
$’000
other
reserves
$’000
accumulated
losses
$’000
Total equity
$’000
Balance at 1 July 2022
46,652
913
(31,269)
16,296
Loss for the period
–
–
(8,076)
(8,076)
Other comprehensive income
–
168
–
168
Total comprehensive income/(loss)
for the period
–
168
(8,076)
(7,908)
Transactions with owners in their capacity as owners:
Contributions of equity, net of transaction costs
7(a)
345
–
–
345
Share-based payment vesting charge
7(b),16(d)
–
212
–
212
Conversion to equity upon vesting
of performance rights
244
(244)
–
–
589
(32)
–
557
Balance at 30 June 2023
47,241
1,049
(39,345)
8,945
ATTRIBUTABLE TO OWNERS
OF QUICKFEE LIMITED
Notes
Contributed
equity
$’000
other
reserves
$’000
accumulated
losses
$’000
Total equity
$’000
Balance at 1 July 2023
47,241
1,049
(39,345)
8,945
Loss for the period
–
–
(4,666)
(4,666)
Other comprehensive loss
–
(39)
–
(39)
Total comprehensive loss for the period
–
(39)
(4,666)
(4,705)
Transactions with owners in their capacity as owners:
Contributions of equity, net of transaction costs
7(a)
3,806
–
–
3,806
Share-based payment vesting charge
16(d)
–
173
–
173
Conversion to equity upon vesting
of performance rights
7(b)
227
(227)
–
–
Issue of share warrants
7(b)
–
289
–
289
Conversion to equity upon exercise
of share warrants
7(b)
289
(289)
–
–
4,322
(54)
–
4,268
Balance at 30 June 2024
51,563
956
(44,011)
8,508
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
46
Consolidated statement
of cash flows
For the year ended 30 June 2024
Notes
FY24
$’000
FY23
$’000
Cash flows from operating activities
Interest, fees and charges from customers and firms (inclusive of GST)
20,389
15,241
Payments to suppliers and employees (inclusive of GST)
(19,056)
(19,354)
Interest and net finance costs paid
(5,357)
(2,747)
Net cash outflow from operating activities before changes in loan receivables
and firm settlements outstanding
(4,024)
(6,860)
Payments to firms to settle loan receivables and movement in firm settlements
outstanding
(92,196)
(80,423)
Receipts from firms’ customers in respect of loan receivables
87,177
71,097
Net cash outflow from operating activities
8(a)
(9,043)
(16,186)
Cash flows from investing activities
Payments for plant and equipment
(74)
(34)
Proceeds from disposal of plant and equipment
–
38
Net cash (outflow)/inflow from investing activities
(74)
4
Cash flows from financing activities
Proceeds from issues of shares
7(a)
4,067
350
Share issue transaction costs
7(a)
(261)
(5)
Proceeds of loan receivables borrowings facility, net of repayments
16,249
11,591
Payments for establishment of borrowings facility and issue of subsequent
loan notes
(625)
(299)
Principal elements of lease payments
(183)
(292)
Net cash inflow from financing activities
19,247
11,345
Net increase/(decrease) in cash and cash equivalents
10,130
(4,837)
Cash and cash equivalents at the beginning of the financial year
3,387
8,185
Effects of exchange rate changes on cash and cash equivalents
34
39
Cash and cash equivalents at end of the financial year
13,551
3,387
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
47
QuickFee Limited / Annual Report 2024
Notes to the
financial statements
For the year ended 30 June 2024
1
Segment information
(a) Description of segments and principal 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 President-North America, Managing Director, Australia and Chief Financial Officer.
Management examines the group’s performance from both a geographic, product development and product profitability
perspective and has identified the following reportable operating segments of its business:
(i) Payment and lending operations in Australia (AU);
(ii) Payment and lending operations in the United States (US).
These parts of the business operates a suite of payment and lending offerings via an online portal to professional,
commercial and homeowner services providers in Australia and the US. These solutions help customers of service
providers 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.
(iii) Product development: this part of the business undertakes the research and development of the group’s software and
technology solutions.
In addition, management also examines the group’s same performance across a different set of segments, namely
‘product profitability’ and has identified the following product profitability segments of its business:
(i) In Australia: QuickFee EFT & Card (‘Pay Now’); QuickFee Finance; and QuickFee Buy Now, Pay Later (BNPL or Q Pay Plan);
(ii) In the United States: QuickFee ACH (‘Pay Now’); QuickFee Card (‘Pay Now’); QuickFee Finance; and QuickFee Buy Now,
Pay Later (BNPL).
The group does not have any customers that make up more than 10% of group revenue.
(b) Country and product development segments
(i)
Adjusted gross profit and EBTDA
Gross profit is equal to revenue, less cost of sales and less interest expense on borrowings that support loan receivables.
EBTDA is equal to EBITDA (earnings before interest, taxes, depreciation and amortisation) less interest expense on
borrowings that support loan receivables.
(ii) Share-based payment expenses
In the consolidated statement of profit or loss and other comprehensive income, the line item ‘general and administrative
expenses’ includes share-based payment expenses. In this note, these expenses are itemised separately and excluded
from the ‘general and administrative expenses’ line item.
48
Notes to the
financial statements continued
1
Segment information continued
(b) Country and product development segments continued
The table below shows profit/(loss) for the year ended 30 June 2024, allocated by country and product development
segment which reconciles to loss for the period:
FY24
AU
$’000
US
$’000
Product
development
$’000
Unallocated
$’000
Total
$’000
Interest revenue
7,465
3,777
–
–
11,242
Interest expense
(2,388)
(2,288)
–
–
(4,676)
Net interest revenue
5,077
1,489
–
–
6,566
Revenue from contracts with customers
1,642
7,411
–
–
9,053
Cost of sales
(1,469)
(1,523)
–
–
(2,992)
Gross profit
5,250
7,377
–
–
12,627
Other income
5
–
–
–
5
General and administrative expenses
(1,651)
(3,182)
–
(1,443)
(6,276)
Selling and marketing expenses
(745)
(1,636)
–
–
(2,381)
EBTDA before customer acquisition
and product development expenses
and significant items
2,859
2,559
–
(1,443)
3,975
Customer acquisition expenses
(441)
(2,342)
–
–
(2,783)
Product development expenses
–
–
(4,198)
–
(4,198)
EBTDA before significant items
2,418
217
(4,198)
(1,443)
(3,006)
Share-based payment expenses
–
–
–
(173)
(173)
EBTDA
2,418
217
(4,198)
(1,616)
(3,179)
Depreciation and amortisation
(183)
(127)
–
(808)
(1,118)
Net finance costs
(161)
(208)
–
–
(369)
Profit/(loss) before income tax
and profit/(loss) for the period
2,074
(118)
(4,198)
(2,424)
(4,666)
49
QuickFee Limited / Annual Report 2024
Notes to the
financial statements continued
1
Segment information continued
(b) Country and product development segments continued
The table below shows profit/(loss) for the year ended 30 June 2023, allocated by country and product development
segment which reconciles to loss for the period:
FY23
AU
$’000
US
$’000
Product
development
$’000
Unallocated
$’000
Total
$’000
Interest revenue
4,766
2,564
–
–
7,330
Interest expense
(1,604)
(1,025)
–
–
(2,629)
Net interest revenue
3,162
1,539
–
–
4,701
Revenue from contracts with customers
1,303
6,133
–
–
7,436
Cost of sales
(1,214)
(1,562)
–
–
(2,776)
Gross profit
3,251
6,110
–
–
9,361
Other income
5
146
–
–
151
General and administrative expenses
(1,785)
(3,209)
–
(1,910)
(6,904)
Selling and marketing expenses
(831)
(1,558)
–
–
(2,389)
EBTDA before customer acquisition
and product development expenses
and significant items
640
1,489
–
(1,910)
219
Customer acquisition expenses
(404)
(2,235)
–
–
(2,639)
Product development expenses
–
–
(3,898)
–
(3,898)
EBTDA before significant items
236
(746)
(3,898)
(1,910)
(6,318)
Share-based payment expenses
–
–
–
(212)
(212)
EBTDA
236
(746)
(3,898)
(2,122)
(6,530)
Depreciation and amortisation
(113)
(272)
–
(742)
(1,127)
Net finance costs
(110)
(217)
–
(92)
(419)
Profit/(loss) before income tax
and profit/(loss) for the period
13
(1,235)
(3,898)
(2,956)
(8,076)
50
Notes to the
financial statements continued
1
Segment information continued
(c) Segment assets and liabilities
The table below shows segment assets and liabilities as at 30 June 2024:
30 June 2024
AU
$’000
US
$’000
Product
development
$’000
Unallocated
$’000
Total
$’000
Segment assets
40,808
16,157
–
13,783
70,748
Total assets
40,808
16,157
–
13,783
70,748
Segment liabilities
41,910
21,560
–
(1,230)
62,240
Total liabilities
41,910
21,560
–
(1,230)
62,240
The table below shows segment assets and liabilities as at 30 June 2023:
30 June 2023
AU
$’000
US
$’000
Product
development
$’000
Unallocated
$’000
Total
$’000
Segment assets
31,364
13,106
–
3,643
48,113
Total assets
31,364
13,106
–
3,643
48,113
Segment liabilities
28,637
11,990
–
(1,459)
39,168
Total liabilities
28,637
11,990
–
(1,459)
39,168
51
QuickFee Limited / Annual Report 2024
Notes to the
financial statements continued
1
Segment information continued
(d) Product profitability segments
The table below shows adjusted gross profit for the year ended 30 June 2024 allocated by product profitability segment,
which reconciles to gross profit for the period:
FY24
EFT And CArd
$’000
FinAnce
$’000
BNPL
$’000
Total
$’000
Australia
Interest revenue
–
7,178
287
7,465
Revenue from contracts with customers
864
717
61
1,642
Total gross revenue
864
7,895
348
9,107
Direct processing costs
(789)
(133)
(25)
(947)
Platform, credit check and credit staff costs
–
(506)
(16)
(522)
Cost of sales
(789)
(639)
(41)
(1,469)
Interest expense
–
(2,388)
–
(2,388)
Gross profit for the period
75
4,868
307
5,250
ACH
$’000
CArd
$’000
FinAnce
$’000
BNPL
$’000
Total
$’000
United States
Interest revenue
–
–
3,777
–
3,777
Revenue from contracts with customers
6,382
795
234
–
7,411
Total gross revenue
6,382
795
4,011
–
11,188
Direct processing costs
(860)
–
–
–
(860)
Platform, credit check and credit staff
costs
(188)
(40)
(435)
–
(663)
Cost of sales
(1,048)
(40)
(435)
–
(1,523)
Interest expense
–
–
(2,288)
–
(2,288)
Gross profit for the period
5,334
755
1,288
–
7,377
Total gross profit for the period
12,627
52
Notes to the
financial statements continued
1
Segment information continued
(d) Product profitability segments continued
The table below shows adjusted gross profit for the year ended 30 June 2023 allocated by product profitability segment,
which reconciles to gross profit for the period:
FY23
EFT And CArd
$’000
FinAnce
$’000
BNPL
$’000
Total
$’000
Australia
Interest revenue
–
4,699
67
4,766
Revenue from contracts with customers
764
527
12
1,303
Total gross revenue
764
5,226
79
6,069
Direct processing costs
(689)
(22)
(15)
(726)
Platform, credit check and credit staff costs
–
(475)
(13)
(488)
Cost of sales
(689)
(497)
(28)
(1,214)
Interest expense
–
(1,604)
–
(1,604)
Gross profit for the period
75
3,125
51
3,251
ACH
$’000
CArd
$’000
FinAnce
$’000
BNPL
$’000
Total
$’000
United States
Interest revenue
–
–
2,429
135
2,564
Revenue from contracts with customers
5,345
564
129
95
6,133
Total gross revenue
5,345
564
2,558
230
8,697
Direct processing costs
(615)
–
(1)
(110)
(726)
Platform, credit check and credit staff
costs
(230)
(50)
(534)
(22)
(836)
Cost of sales
(845)
(50)
(535)
(132)
(1,562)
Interest expense
–
–
(1,020)
(5)
(1,025)
Gross profit for the period
4,500
514
1,003
93
6,110
Total gross profit for the period
9,361
53
QuickFee Limited / Annual Report 2024
Notes to the
financial statements continued
2
Revenue
Notes
FY24
$’000
FY23
$’000
Interest revenue using the effective interest rate method
2(a)
11,242
7,330
Revenue from contracts with customers
3
9,053
7,436
Total revenue
20,295
14,766
(a) Net interest revenue
FY24
$’000
FY23
$’000
Interest revenue
Loan receivables
11,242
7,330
Interest expense
Loan receivables – financial institution lenders
(4,676)
(2,629)
Net interest revenue
6,566
4,701
(i)
Interest revenue
Interest revenue from loan receivables relate to the QuickFee Finance and Buy Now, Pay Later (BNPL) products. Interest
revenue is recognised over the life of the loans granted by the group to its customers. 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.
54
Notes to the
financial statements continued
3 Revenue from contracts with customers
(a) Disaggregation of revenue from contracts with customers
The group derives revenue from the transfer of services over time and at a point in time in the following major streams:
FY24
application
fee revenue
$’000
Merchant
fee revenue
$’000
Platform
fee revenue
$’000
Total
$’000
Timing of revenue recognition
At a point in time
–
8,253
32
8,285
Over time
612
–
156
768
612
8,253
188
9,053
FY23
Timing of revenue recognition
At a point in time
–
6,808
14
6,822
Over time
424
–
190
614
424
6,808
204
7,436
(b) Accounting policies
(i)
Application fee revenue
Revenue from application fees relate to the QuickFee Finance 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) Merchant fee revenue
Revenue from merchant fees relate to various product offerings, including:
• QuickFee Finance: instalment deferral fees, instalment dishonour fees and credit card processing fees on instalments;
• QuickFee Pay Now: bank transfer (ACH/EFT) and credit card processing fees on pay in full transactions; and
• BNPL: credit card processing fees on instalments.
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) Platform fee 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 firms. Joining/set up fee revenue is recognised at a point in time once the single
performance obligation of establishing the customer (firm) onto the platform is satisfied. Recurring monthly subscription
fee revenue is recognised on a straight-line basis over the subscription term.
55
QuickFee Limited / Annual Report 2024
Notes to the
financial statements continued
4 Other income and expense items
(a) Breakdown of expenses by nature
Notes
FY24
$’000
FY23
$’000
Cost of sales
Employee benefits1
399
392
Direct processing costs
1,807
1,452
Platform and credit check costs
541
694
Other
245
238
2,992
2,776
General and administrative expenses
Accounting, legal and professional fees
487
546
Employee benefits1
3,975
4,528
Net impairment losses on loan receivables
61
(99)
Recruitment
80
282
Share-based payment expenses (non-cash)
16(d)
173
212
Insurance
254
250
Travel
130
189
Other
1,289
1,208
6,449
7,116
Depreciation and amortisation
Depreciation
232
384
Amortisation
886
743
1,118
1,127
Selling and marketing expenses
Employee benefits1
2,070
2,128
Other
311
261
2,381
2,389
Customer acquisition expenses
Employee benefits1
1,988
1,831
Other
795
808
2,783
2,639
56
Notes to the
financial statements continued
4 Other income and expense items continued
(a) Breakdown of expenses by nature continued
FY24
$’000
FY23
$’000
Product development expenses
Employee benefits1
2,402
2,659
Other
1,796
1,239
4,198
3,898
Notes:
1. Employee benefits from each functional expense category includes aggregate superannuation/401k of A$419,000
(2023: A$400,000).
(b) Net finance costs
FY24
$’000
FY23
$’000
Finance costs – lease liabilities
(25)
(11)
Finance costs – borrowings facility line fee
(344)
(408)
(369)
(419)
57
QuickFee Limited / Annual Report 2024
Notes to the
financial statements continued
5 Income tax expense
(a) Numerical reconciliation of income tax expense to prima facie tax payable
FY24
$’000
FY23
$’000
Loss before income tax
(4,666)
(8,076)
Tax at the Australian tax rate of 25% (2023: 25%)
(1,167)
(2,019)
Tax effect of amounts which are not deductible (taxable) in calculating taxable income:
Blackhole expenditure (Section 40-880, ITAA 1997)
(134)
(121)
Employee leave obligations
(9)
18
Expected credit losses
–
(56)
Prepayments
(2)
20
Share-based payments
43
53
Other
(43)
13
Subtotal
(145)
(73)
Difference in overseas tax rates
(204)
(63)
Tax losses and other timing differences for which no deferred tax asset is recognised
1,516
2,155
Income tax expense
–
–
(b) Tax losses
FY24
$’000
FY23
$’000
Unused Australian tax losses for which no deferred tax asset has been recognised
22,826
22,058
Potential tax benefit at 25% (2023: 25.0%)
5,707
5,515
Unused United States tax losses for which no deferred tax asset has been recognised
16,550
12,113
Potential tax benefit at 29.84% (2023: 29.84%)
4,939
3,615
Total potential tax benefit
10,646
9,130
Tax losses for the year ended 30 June 2023 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 2024 and 30 June 2023. 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.
58
Notes to the
financial statements continued
6 Financial assets and financial liabilities
(a) Cash-in-transit, loan receivables and firm settlements outstanding
Cash and cash equivalents includes $6,643,000 (30 June 2023: nil) of cash balances held on behalf’s of the group’s
customers in bank accounts that are used to process the group’s US ACH (Pay Now) transactions. These amounts are also
included within the firm settlements outstanding balance shown in the table below. These amounts arose for the first time
in FY24 when the group commenced processing ACH transactions ‘in-house’, whereas it had previously used a third party
payments organistion to process ACH transactions.
30 June 2024
30 June 2023
Notes
Current
$’000
Non-
Current
$’000
Total
$’000
Current
$’000
Non-
Current
$’000
Total
$’000
Gross loan receivables
6(a)(i), (ii)
54,150
1,198
55,348
42,365
1,044
43,409
Expected credit losses
10(b)
(146)
–
(146)
(219)
–
(219)
Loan receivables
54,004
1,198
55,202
42,146
1,044
43,190
Firm settlements
outstanding
6(a)(iii),
(iv)
10,804
–
10,804
3,520
–
3,520
30 June 2024
30 June 2023
EXPECTED CREDIT
LOSSES AGEING
< 30 days
past due
> 30 days
past due
Total
< 30 days
past due
> 30 days
past due
Total
Expected Loss Rate
0.11%
100%
0.24%
100%
ECL provision
60
86
146
102
117
219
Gross Receivables
55,262
86
55,348
43,292
117
43,409
(i)
Classification of gross loan receivables
Gross loan receivables are amounts due from customers of firms for payment plans (loans) entered into in the ordinary
course of business from the QuickFee Finance and BNPL products.
(ii) Recognition and measurement of gross loan 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) Classification of firm settlements outstanding
Firm settlements outstanding represent the following:
• payment plans (loans) approved but yet to be settled by the group to firms, 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 firms.
59
QuickFee Limited / Annual Report 2024
Notes to the
financial statements continued
6 Financial assets and financial liabilities continued
(a) Cash-in-transit, loan receivables and firm settlements outstanding continued
(iv) Recognition and measurement of firm settlements outstanding
Firm settlements outstanding are non-derivative financial liabilities, with fixed and determinable payments that are not
quoted in an active market. The carrying amounts of firm 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 one to
seven days.
(b) Trade and other payables
30 June 2024
Current
$’000
30 June 2023
Current
$’000
Trade payables
535
874
Accrued expenses
802
1,023
Other payables
338
413
Total borrowings
1,675
2,310
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.
(c) Borrowings
30 June 2024
30 June 2023
Notes
Current
$’000
Non-
Current
$’000
Total
$’000
Current
$’000
Non-
Current
$’000
Total
$’000
Secured
Northleaf Capital
Partners Ltd
6(c)(i)
43,802
285
44,087
34,129
199
34,328
Wingate Corporate
Investments
6(c)(ii)
6,500
–
6,500
–
–
–
Total secured
borrowings
50,302
285
50,587
34,129
199
34,328
Capitalised borrowing costs
Unamortised borrowing costs
(1,958)
–
(1,958)
(1,929)
–
(1,929)
Total capitalised
borrowing costs
(1,958)
–
(1,958)
(1,929)
–
(1,929)
Total borrowings
48,344
285
48,629
32,200
199
32,399
60
Notes to the
financial statements continued
6 Financial assets and financial liabilities continued
(c) Borrowings continued
(i)
Northleaf Capital Partners Ltd (Northleaf)
The Northleaf credit facility consists of a US$40 million committed first lien facility, comprising a US$5 million revolving
credit facility (denominated in US dollars) and a US$35 term loan facility (denominated in Australian dollars). The facility
is drawable in either Australian or US dollars, with an additional optional US$30 million accordion feature, subject to
Northleaf’s approval. The debt is secured over certain identified loan receivables of QuickFee AU and QuickFee US.
The US dollar credit facility attracts interest at 5.75% per annum plus SOFR. The AU dollar credit facility attracts interest
at 5.75% per annum plus AU BBSW. In addition, a fee of 0.25% per annum applies to any unused portion of the committed
US$40 million facility. At 30 June 2024, US$5 million was drawn from the revolver and US$4 million and AU$30.5 million
was drawn from the term loan facility. The facility maturity date is 30 November 2025 and the draw availability period ends
on 30 September 2024. The group was in compliance with all facility agreement covenants throughout the year.
(ii) Wingate Corporate Investments (Wingate)
The Wingate credit facility was completed on 21 December 2023. The facility consists of a AU$10 million revolving credit
facility, secured over certain identified disbursement funding loan receivables of QuickFee AU. The facility attracts interest
at AU BBSW plus a margin of 9% per annum. In addition a fee of 2% per annum applies to any unused portion of the
committed AU$10 million facility. At 30 June 2024, AU$6.5 million was drawn from the facility. The facility maturity date
is 30 June 2028 and the draw availability period ends on 30 June 2025. The group was in compliance with all facility
agreement covenants throughout the year.
(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) Capitalised borrowing costs
Carrying values of borrowings are offset by prepaid costs of establishment of both facilities.
(v) Risk exposures
Details of the group’s exposure to risks arising from current and non-current borrowings are set out in note 10.
61
QuickFee Limited / Annual Report 2024
Notes to the
financial statements continued
7 Equity
(a) Contributed equity
Notes
30 June 2024
Shares
’000
30 June 2023
Shares
’000
30 June 2024
$’000
30 June 2023
$’000
Ordinary shares
7(a)(ii)
Fully paid
331,578
270,052
51,563
47,241
7(a)(i)
331,578
270,052
51,563
47,241
(i)
Movements in ordinary shares:
Details
Number
of shares
’000
Total
$’000
Balance at 1 July 2022
265,600
46,652
4 July 2022: Issued at A$nil pursuant to vesting of director and employee unlisted
performance rights1
761
–
24 November 2022: Share issue at A$0.10 pursuant to May 2022 share placement
3,500
350
2 February 2023: Issued at A$nil pursuant to vesting of director and employee unlisted
performance rights1
191
–
Transfer from share based payments reserve on vesting of performance rights
and conversion into ordinary shares
–
244
Less: Transaction costs arising on share issues
–
(5)
Balance at 30 June 2023
270,052
47,241
Balance at 1 July 2023
270,052
47,241
12 July 2023: Issued at A$nil pursuant to vesting of director and employee
unlisted performance rights1
128
–
15 August 2023: Issued at A$nil pursuant to vesting of director and employee
unlisted performance rights1
3,559
–
10 October 2023: Issued at A$nil pursuant to vesting of director and employee
unlisted performance rights1
384
–
1 December 2023: Issued at A$nil pursuant to vesting of director and employee
unlisted performance rights1
750
–
2 February 2024: Issued at A$nil pursuant to vesting of director and employee unlisted
performance rights1
191
–
9 May 2024: Share issue at A$0.08 pursuant to May 2024 share placement
42,500
3,400
17 June 2024: Share issue at A$0.08 pursuant to May 2024 share purchase plan
8,343
667
19 June 2024: Issues at $nil pursuant to exercise of unlisted warrants and conversion
to quoted shares
5,671
289
Transfer from share based payments reserve on vesting of performance rights
and conversion into ordinary shares
–
227
Less: Transaction costs arising on share issues
–
(261)
Balance at 30 June 2024
331,578
51,563
1. See note 16 for details.
62
Notes to the
financial statements continued
7 Equity continued
(a) Contributed equity continued
(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.
(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.
Notes
Share-based
payment
reserve
$’000
Foreign
currency
translation
reserve
$’000
Total other
reserves
$’000
Balance at 1 July 2022
989
(76)
913
Currency translation differences
–
168
168
Transactions with owners in their capacity as owners:
Share options expensed
16(d)
34
–
34
Performance rights expensed
16(d)
178
–
178
Performance rights vested
7(a)(i), 16(b)
(244)
–
(244)
Balance at 30 June 2023
957
92
1,049
Balance at 1 July 2023
957
92
1,049
Currency translation differences
–
(39)
(39)
Transactions with owners in their capacity as owners:
Share options expensed
16(d)
49
–
49
Performance rights expensed
16(d)
124
–
124
Performance rights vested
7(a)(i), 16(b)
(227)
–
(227)
Warrants issued
16(c)
289
–
289
Warrants exercised and converted to equity
16(c)
(289)
–
(289)
Balance at 30 June 2024
903
53
956
63
QuickFee Limited / Annual Report 2024
Notes to the
financial statements continued
7 Equity continued
(b) Other reserves continued
(i)
Nature and purpose of other reserves
Share-based payments
The share-based payment reserve records items recognised as expenses on valuation of share options, performance
rights and warrants issued to key management personnel, other employees and eligible contractors and third parties.
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.
8 Cash flow information
(a) Reconciliation of loss after income tax to net cash outflow from operating activities
Notes
FY24
$’000
FY23
$’000
Loss for the period
(4,666)
(8,076)
Adjustments for:
Depreciation and amortisation
4(a)
1,118
1,127
Expected credit losses
61
(99)
Share-based payments
16(d)
173
212
Change in operating assets and liabilities:
Movement in loan and payment processing receivables
(12,068)
(9,474)
Movement in trade and other receivables
(21)
181
Movement in other operating assets
(102)
6
Movement in firm settlements outstanding
7,284
357
Movement in trade and other payables
(577)
(371)
Movement in contract liabilities
(216)
(109)
Movement in employee benefit obligations
(29)
60
Net cash outflow from operating activities
(9,043)
(16,186)
(b) Non-cash investing and financing activities
Non-cash investing and financing activities disclosed in other notes are:
• acquisition of right-of-use assets; and
• options and performance rights issued to employees under the ‘Performance Rights and Options Plan’ and to service
providers for no cash consideration – note 16.
64
Notes to the
financial statements continued
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(b);
• impairment of loan receivables – note 10(b); and
• employee benefit obligations – note 20.
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)
Foreign exchange 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) Interest rate risk
Borrowings from Northleaf and Wingate incur variable interest rates based on the 3 month USD SOFR and
AUD BBSW rates. If these rates moved by 1.00% it would change the annualised interest expense (based on the level
of borrowings at the end of the period) by A$503,000 (FY23: A$343,000). The group is not exposed to interest rate risk
on interest received as income from customers are set at fixed interest rates.
65
QuickFee Limited / Annual Report 2024
Notes to the
financial statements continued
10 Financial risk management continued
(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 firms signed up to the QuickFee platform and these firms’ customers that transact
through this platform.
For the QuickFee Finance product, the firms 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 firms
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 firm’s annual revenue to limit risks related to a firm’s
ability to repay loans on behalf of their customer, if required;
• limits for the value of loans guaranteed to any one particular firm to limit concentration of its loan book;
• annual reviews undertaken in respect of all customer loans and firms; and
• undertaking credit checks on borrowers above thresholds prior to granting loans.
To further protect the group from credit risk, firms usually grant to QuickFee Limited the irrevocable right to require the
firm to purchase a QuickFee Finance 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 Finance loan receivables due to the fact
that the group usually has recourse against its firms to recover amounts in respect of unpaid invoices used as collateral for
any loan granted. This recourse from firms is typically backed by a direct debit authority for bank accounts of each firm.
Historically the risk of default has been low due to the underlying firms 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
Finance ‘Fee Funding’ loan receivables.
66
Notes to the
financial statements continued
10 Financial risk management continued
(b) Credit risk continued
(i)
Risk management continued
For the loan receivables relating to the QuickFee BNPL product, the group’s primary credit risk mitigation strategies
comprise:
• 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;
• borrower eligibility criteria that in most cases requires the borrower to own the property that any homeowner services
are being performed at;
• 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 firm using the QuickFee Pay Now 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 firm 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 Finance 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.
(iii) Impairment of financial 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.
67
QuickFee Limited / Annual Report 2024
Notes to the
financial statements continued
10 Financial risk management continued
(b) Credit risk continued
(iii) Impairment of financial assets continued
Loan receivables continued
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 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.
Stage 2
1 to 60 days
past due
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 2024
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 affecting the ability of the customers
to settle the receivables.
68
Notes to the
financial statements continued
10 Financial risk management continued
(b) Credit risk continued
(iii) Impairment of financial assets continued
Loan receivables continued
The loss allowances for loan receivables as at 30 June reconciles to the opening loss allowances as follows:
FY24
$’000
FY23
$’000
Opening loss allowance as at 1 July
219
396
Increase/(decrease) in loan receivables loss allowance recognised in profit or loss
during the year
61
(99)
Loan receivables written off during the year as uncollectible
(134)
(78)
Closing loss allowance as at 30 June
146
219
There were no receivables past due not impaired for the year ended 30 June 2024 (2023: 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 2024 and 30 June 2023 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.
69
QuickFee Limited / Annual Report 2024
Notes to the
financial statements continued
10 Financial risk management continued
(c) Liquidity risk continued
(i)
Maturities of financial 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 2024
Less than
12 months
$’000
Between
1 and
2 years
$’000
Between
2 and
5 years
$’000
Over
5 years
$’000
Total
contr-
actual
cash flows
$’000
Carrying
amount
$’000
Firm settlements
outstanding
6(a)
10,804
–
–
–
10,804
10,804
Trade and other payables
6(b)
1,675
–
–
–
1,675
1,675
Lease liabilities
186
142
59
–
387
387
Borrowings
6(c)
50,302
285
–
–
50,587
50,587
Total
62,967
427
59
–
63,453
63,453
As at 30 June 2023
Firm settlements
outstanding
6(a)
3,520
–
–
–
3,520
3,520
Trade and other payables
6(b)
2,310
–
–
–
2,310
2,310
Lease liabilities
94
47
–
–
141
137
Borrowings
6(c)
34,129
199
–
–
34,328
34,328
Total
40,053
246
–
–
40,299
40,295
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.
70
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
Fy24
fy23
Franking credits available for subsequent reporting periods based on a tax rate of 25%
(2023: 25.0%)
128,399
128,399
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 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
%
Name of entity
Entity type
Place of business/
country of
incorporation
30 JUNE
2024
30 JUNE
2023
Tax
Residency
Franchise Payment Services Pty Ltd
Body corporate
Australia
100
100
Australia
QuickFee Australia Pty Ltd
Body corporate
Australia
100
100
Australia
QuickFee Finance Pty Ltd
Body corporate
Australia
100
100
Australia
QuickFee Financing Pty Ltd
Body corporate
Australia
100
100
Australia
QuickFee WG Financing Pty Ltd1
Body corporate
Australia
100
N/A
Australia
QuickFee Group LLC
Body corporate
United States
100
100
United States
QuickFee Finance LLC
Body corporate
United States
100
100
United States
QuickFee GCI LLC
Body corporate
United States
100
100
United States
QuickFee NL Financing LLC
Body corporate
United States
100
100
United States
QuickFee NL Holding LLC
Body corporate
United States
100
100
United States
QuickFee, Inc.
Body corporate
United States
100
100
United States
Notes:
1. Incorporated on 3 November 2023.
QuickFee Limited (the ‘head entity’) and its wholly-owned Australian subsidiaries have formed an income tax consolidated
group under the tax consolidation regime.
71
QuickFee Limited / Annual Report 2024
Notes to the
financial statements continued
13 Contingent liabilities
The group had no material contingent liabilities at 30 June 2024 (2023: nil).
14 Events occurring after the reporting period
On 2 July 2024, 127,830 performance rights that had vested on 1 July 2024 under the group’s PROP were converted into
equity and 127,830 shares were issued on 2 July 2024.
No other events or circumstances have arisen since 30 June 2024 that has significantly affected the group’s operations,
results or state of affairs, or may do so in future years.
15 Related party transactions
(a) Subsidiaries
Interests in subsidiaries are set out in note 12(a).
(b) Key management personnel compensation
FY24
$
FY23
$
Short-term employee benefits
1,603,076
1,692,862
Post-employment benefits
62,818
80,028
Long-term long service leave benefits
14,065
12,680
Long-term share-based payments
14,057
111,504
1,694,016
1,897,074
Detailed remuneration disclosures are provided in the remuneration report on pages 19 to 34.
(c) Transactions with other related parties
None.
72
Notes to the
financial statements continued
16 Share-based payments
An updated ‘Performance Rights and Options Plan’ (PROP) was approved by shareholders at the 2021 Annual General
Meeting and further updated for certain minor legislative changes on 19 September 2023. 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.
(a) Share options
Set out below are summaries of share options, including those granted under the PROP:
FY24
FY23
Average
exercise
price per
share option
$
Number of
options
Average
exercise
price per
share option
$
Number of
options
As at 1 July
0.369
8,658,332
0.388
10,983,333
Granted during the period:
0.073
2,212,500
0.095
1,975,000
Forfeited/lapsed during the period
0.383
(4,675,002)
0.291
(4,300,001)
As at 30 June
0.252
6,195,830
0.369
8,658,332
Vested and exercisable at 30 June
0.302
4,804,165
0.375
6,441,662
73
QuickFee Limited / Annual Report 2024
Notes to the
financial statements continued
16 Share-based payments continued
(a) Share options continued
Share options outstanding at the start and end of the period have the following expiry dates and exercise prices:
Number of
share options
Grant date
Holder
Code
Issue date
Expiry date
Exercise
price
1 July
2023
Granted
Lapsed/
expired
30 June
2024
22 Jan 2019
Bruce Coombes
QFEAB
09 Jul 2020
09 Jul 2023
A$0.300
1,000,000
–
(1,000,000)
–
22 Jan 2019
Bruce Coombes
QFEAB (T2)
09 Jul 2021
09 Jul 2023
A$0.400
1,000,000
–
(1,000,000)
–
22 Jan 2019
Bruce Coombes
QFEAB (T3)
09 Jul 2022
09 Jul 2023
A$0.500
1,000,000
–
(1,000,000)
–
18 Mar 2020
Various employees
QFEAD
30 Jun 2020
30 Jun 2025
A$0.500
533,333
–
–
533,333
23 Jul 2020
Barry Lewin
QFEAG
30 Jun 2021
23 Jul 2025
A$0.500
200,000
–
–
200,000
23 Jul 2020
Dale Smorgon
QFEAG
30 Jun 2021
23 Jul 2025
A$0.500
300,000
–
–
300,000
26 May 2021
Corey Struve
QFEAH
01 Sep 2021
31 Jan 2026
A$0.580
100,000
–
–
100,000
20 Aug 2021
Various employees
QFEAI
30 Jun 2024
30 Jun 2026
A$0.280
537,519
–
(41,667)
495,852
20 Aug 2021
Various employees
QFEAJ
30 Jun 2024
30 Jun 2026
A$0.319
537,494
–
(41,667)
495,827
20 Aug 2021
Various employees
QFEAK
30 Jun 2024
30 Jun 2026
A$0.344
537,494
–
(41,667)
495,827
20 Aug 2021
Various employees
QFEAL
30 Jun 2024
30 Jun 2026
A$0.382
537,492
–
(41,666)
495,826
21 Dec 2021
Neu Capital Australia
Pty Ltd
QFEAN
02 Dec 2023
02 Dec 2025
A$0.840
250,000
–
(250,000)
–
21 Dec 2021
Neu Capital Australia
Pty Ltd
QFEAO
02 Dec 2023
02 Dec 2025
A$0.980
250,000
–
(250,000)
–
27 Jun 2022
Don Singer
QFEAQ
30 Sep 2022
30 Jun 2026
A$0.280
25,000
–
–
25,000
27 Jun 2022
Don Singer
QFEAR
30 Sep 2022
30 Jun 2026
A$0.319
25,000
–
–
25,000
27 Jun 2022
Don Singer
QFEAS
30 Sep 2022
30 Jun 2026
A$0.344
25,000
–
–
25,000
27 Jun 2022
Don Singer
QFEAT
30 Sep 2022
30 Jun 2026
A$0.382
25,000
–
–
25,000
27 Jun 2022
Sharat Shankar
QFEAQ
30 Sep 2022
30 Jun 2026
A$0.280
25,000
–
–
25,000
27 Jun 2022
Sharat Shankar
QFEAR
30 Sep 2022
30 Jun 2026
A$0.319
25,000
–
–
25,000
27 Jun 2022
Sharat Shankar
QFEAS
30 Sep 2022
30 Jun 2026
A$0.344
25,000
–
–
25,000
27 Jun 2022
Sharat Shankar
QFEAT
30 Sep 2022
30 Jun 2026
A$0.382
25,000
–
–
25,000
27 Jun 2022
Francesco Fabbrocino
QFEAQ
30 Apr 2023
30 Jun 2026
A$0.280
25,000
–
–
25,000
74
Notes to the
financial statements continued
Number of
share options
Grant date
Holder
Code
Issue date
Expiry date
Exercise
price
1 July
2023
Granted
Lapsed/
expired
30 June
2024
27 Jun 2022
Francesco Fabbrocino
QFEAR
30 Apr 2023
30 Jun 2026
A$0.319
25,000
–
–
25,000
27 Jun 2022
Francesco Fabbrocino
QFEAS
30 Apr 2023
30 Jun 2026
A$0.344
25,000
–
–
25,000
27 Jun 2022
Francesco Fabbrocino
QFEAT
30 Apr 2023
30 Jun 2026
A$0.382
25,000
–
–
25,000
1 Nov 2022
Various employees
QFEAP
30 Jun 2023
30 Jun 2027
A$0.080
393,771
–
(95,835)
297,936
1 Nov 2022
Various employees
QFEAU
30 Jun 2023
30 Jun 2027
A$0.091
393,735
–
(95,830)
297,905
1 Nov 2022
Various employees
QFEAV
30 Jun 2023
30 Jun 2027
A$0.099
393,735
–
(95,830)
297,905
1 Nov 2022
Various employees
QFEAW
30 Jun 2023
30 Jun 2027
A$0.110
393,759
–
(95,840)
297,919
5 Sep 2023
Various employees
QFEAX
30 Jun 2024
30 Jun 2028
A$0.062
–
553,148
(156,257)
396,891
5 Sep 2023
Various employees
QFEAY
30 Jun 2024
30 Jun 2028
A$0.071
–
553,116
(156,246)
396,870
5 Sep 2023
Various employees
QFEAZ
30 Jun 2024
30 Jun 2028
A$0.076
–
553,113
(156,246)
396,867
5 Sep 2023
Various employees
QFEAA
30 Jun 2024
30 Jun 2028
A$0.085
–
553,123
(156,251)
396,872
Total
8,658,332
2,212,500
(4,675,002)
6,195,830
30 June
2024
30 June
2023
Weighted average remaining contractual life of share options outstanding at end of period
2.54 years
2.00 years
The grant of 3,000,000 executive share options (QFEAB) to Bruce Coombes was contingent on the IPO occurring. These share options expired on 9 July
2023 without exercise.
The grant of share options QFEAD on 18 March 2020 (533,333 outstanding as at 30 June 2023) vested on 30 June 2023.
16 Share-based payments continued
(a) Share options continued
75
QuickFee Limited / Annual Report 2024
Notes to the
financial statements continued
The 600,000 director share options (QFEAG) granted to Barry Lewin and Dale Smorgon on 23 July 2020 vested in three
equal tranches at 30 June 2021, 2022 and 2023 (for Dale Smorgon), respectively. These share options expire on 23 July
2025. The valuation inputs reflect the 23 July 2020 grant date fair value.
The grant of 100,000 employee share options (QFEAH) on 26 May 2021 vested on 1 September 2021.
The grant of 4,250,000 employee share options (QFEAI, QFEAJ, QFEAK and QFEAL) on 20 August 2021 and 27 June 2022
vested at various dates from 30 June 2022 to 30 June 2024 contingent on continued employment through to each vesting
date. These share options expire on 30 June 2026. As the grant dates of 20 August 2021 and 27 June 2022 occurred after
the employees began rendering services in respect of those grants, AASB 2 requires the group to commence recognition
of the share-based payment expense when the services are received. Consequently, the group commenced amortisation
on 1 July 2021 and 1 January 2022 respectively. The valuation inputs reflect the 20 August 2021 and 27 June 2022
respective grant date fair values. 1,983,332 of these share options were outstanding at the end of the period, all of which
are vested and fully exercisable.
The grant of 500,000 share options to Neu Capital Australia Pty Ltd (QFEAN and QFEAO) on 21 December 2021 lapsed on
2 December 2023 without meeting the vesting conditions attached to them (which were based on the volume of BNPL
transactions processed through the channel partnership with Splitit Payments Ltd during the first three years from the
date of the first funds flow).
The grant of 100,000 share options each to Don Singer and Sharat Shankar (QFEAP, QFEAQ, QFEAR and QFEAS) on
30 September 2021 vested on 30 September 2022. These share options expire on 31 January 2026. As the grant date of
27 June 2022 occurred after the recipients 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 on 1 September 2021. The valuation inputs reflects 27 June 2022 grant date fair value.
The grant of 100,000 share options to Francesco Fabbrocino (QFEAP, QFEAQ, QFEAR and QFEAS) on 1 May 2022 vested
on 30 April 2023. These share options expire on 31 January 2026. As the grant date of 27 June 2022 occurred after the
recipient 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 on
1 May 2022. The valuation inputs reflects 27 June 2022 grant date fair value.
The grant of 1,975,000 employee share options (QFEAP, QFEAU, QFEAV and QFEAW) on 1 November 2022 vest at various
dates from 30 June 2023 to 30 June 2025 contingent on continued employment through to each vesting date. These share
options expire on 30 June 2027. As the grant dats of 1 November 2022 occurred after the employees began rendering
services in respect of those grants, AASB 2 requires the group to commence recognition of the share-based payment
expense when the services are received. Consequently, the group commenced amortisation on 1 July 2022. The valuation
inputs reflect the 1 November 2022 grant date fair values. 1,191,665 of these share options were outstanding at the end of
the period, of which 858,335 are vested and fully exercisable.
16 Share-based payments continued
(a) Share options continued
76
Notes to the
financial statements continued
16 Share-based payments continued
(a) Share options continued
The grant of 2,175,000 employee share options (QFEAX, QFEAY, QFEAZ and QFEAAA) on 5 September 2023 vest at various
dates from 30 June 2024 to 30 June 2026 contingent on continued employment through to each vesting date. These
options expire on 30 June 2028. As the grant date of 5 September 2023 occurred after the employees began rendering
services in respect of that grant, AASB 2 Share-based Payment requires the group to commence recognition of the share-
based payment expense when the services are received. Consequently, the group commenced amortisation on 1 July
2023. The valuation inputs reflect the 5 September 2023 grant date fair value. 1,587,500 of these share options were
outstanding at the end of the period, of which 529,165 are vested and fully exercisable.
(i)
Fair value of options granted
The assessed fair value at grant date of share options was determined using the binomial pricing model that takes into
account the exercise price, the term of the share 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 share option and certain
probability assumptions.
The model inputs for share options granted during the year ended 30 June 2024 included:
Code
Grant date
Exercise
price
Share price
at grant
date
Expected
volatility
Dividend
yield
Risk-free
interest
rate
Fair value
at grant
date per
share
option
QFEAX
5 Sep 2023
A$0.062
A$0.051
76.3%
0.0%
3.85%
A$0.0404
QFEAY
5 Sep 2023
A$0.071
A$0.051
76.3%
0.0%
3.85%
A$0.0387
QFEAZ
5 Sep 2023
A$0.076
A$0.051
76.3%
0.0%
3.85%
A$0.0379
QFEAA
5 Sep 2023
A$0.085
A$0.051
76.3%
0.0%
3.85%
A$0.0365
(b) Performance rights
Set out below are summaries of performance rights granted under the PROP:
FY24
FY23
Notes
Number of
performance rights
As at 1 July
6,330,336
3,479,034
Granted during the period:
10,820,758
10,734,639
Vested and converted to ordinary shares during the period:
7(a)(i)
(6,462,731)
(4,511,948)
Forfeited/lapsed during the period
(2,210,533)
(3,371,389)
As at 30 June
8,477,830
6,330,336
77
QuickFee Limited / Annual Report 2024
Notes to the
financial statements continued
16 Share-based payments continued
(b) Performance rights continued
Details of grants of performance rights outstanding at the end of the period are set out below:
Number of
performance rights
Grant
date
Holder
Code
Issue date
Vesting
date
1 July 2023
Granted
Lapsed/
expired
Vested,
exercised
and
converted
to issued
shares
Vested,
exercised
and yet
to be
converted
to issued
shares
30 June
2024
8 Nov 2021
Various employees
QFEAM
21 Jan 2022
01 Jul 2023
127,830
–
–
(127,830)
–
8 Nov 2021
Various employees
QFEAM
21 Jan 2022
01 Jul 2024
127,830
–
–
–
127,830
8 Nov 2021
Various employees
QFEAM
21 Jan 2022
08 Oct 2023
383,490
–
–
(383,490)
–
1 Nov 2022
Various employees
QFEAM
05 Dec 2022
31 Jan 2023
– 30 Jun 2025
1,000,000
–
(250,000)
–
750,000
1 Nov 2022
Various employees
QFEAM
05 Dec 2022
31 Jan 2024
– 30 Jun 2025
1,000,000
–
(250,000)
–
750,000
1 Nov 2022
Various employees
QFEAM
1 Nov 2022
31 Jan 2024
191,186
–
–
(191,186)
–
21 Nov 2022
Bruce Coombes
QFEAM
05 Dec 2022
31 Jan 2023
– 30 Jun 2025
250,000
–
–
–
250,000
21 Nov 2022
Bruce Coombes
QFEAM
05 Dec 2022
31 Jan 2024
– 30 Jun 2025
250,000
–
–
–
250,000
28 Nov 2022 Various employees
QFEAM
13 Apr 2023
28 Nov 2023
750,000
–
–
(750,000)
–
28 Nov 2022 Various employees
QFEAM
13 Apr 2023
28 Nov 2024
750,000
–
–
–
750,000
28 Nov 2022 Various employees
QFEAM
13 Apr 2023
31 Jan 2024
– 30 Jun 2025
750,000
–
–
–
750,000
28 Nov 2022 Various employees
QFEAM
13 Apr 2023
31 Jan 2024
– 30 Jun 2025
750,000
–
–
–
750,000
6 Oct 2023
Various employees
QFEAM
9 Oct 2023
31 Jan 2024
– 30 Jun 2026
–
1,950,000
(250,000)
–
1,700,000
6 Oct 2023
Various employees
QFEAM
9 Oct 2023
31 Jan 2025
– 30 Jun 2026
–
1,950,000
(250,000)
–
1,700,000
78
Notes to the
financial statements continued
Number of
performance rights
Grant
date
Holder
Code
Issue date
Vesting
date
1 July 2023
Granted
Lapsed/
expired
Vested,
exercised
and
converted
to issued
shares
Vested,
exercised
and yet
to be
converted
to issued
shares
30 June
2024
29 Nov 2023 Bruce Coombes
QFEAM
29 Nov 2023
31 Jan 2024
– 30 Jun 2026
–
350,000
–
–
350,000
29 Nov 2023 Bruce Coombes
QFEAM
29 Nov 2023
31 Jan 2025
– 30 Jun 2026
–
350,000
–
–
350,000
6 Oct 2023
Various employees
QFEAM
9 Oct 2023
30 Jun 2024
–
1,939,409
(1,210,533)
–
(728,876)
–
29 Nov 2023 Dale Smorgon
QFEAM
29 Nov 2023
30 Jun 2024
–
1,136,364
–
–
(1,136,364)
–
29 Nov 2023 Michael McConnell
QFEAM
29 Nov 2023
30 Jun 2024
–
1,107,955
–
–
(1,107,955)
–
29 Nov 2023 Bruce Coombes
QFEAM
29 Nov 2023
30 Jun 2024
–
2,037,030
–
–
(2,037,030)
–
Total
6,330,336
10,820,758
(2,210,533)
(1,452,506)
(5,010,225)
8,477,830
The grant of 639,150 performance rights to various employees on 8 November 2021 vest at various dates contingent on continued employment at the
vesting date. As the grant date of 8 November 2021 occurred after the employees began rendering services in respect of those grants, AASB 2 requires the
group to commence recognition of the share-based payment expense when the services are received. Consequently, the group commenced amortisation
on 1 July 2021. The valuation inputs reflect the 8 November 2021 grant date fair values. 127,830 of these performance rights were outstanding at the end of
the period.
The grant of 2,191,186 performance rights to various employees on 1 November 2022 and 500,000 to Bruce Coombes on 21 November 2022, and 3,000,000
to various employees on 28 November 2022, vest at various dates contingent on continued employment at the vesting date.
16 Share-based payments continued
(b) Performance rights continued
79
QuickFee Limited / Annual Report 2024
Notes to the
financial statements continued
2,000,000 of the performance rights granted to various employees on 1 November 2022 and 500,000 to Bruce Coombes
on 21 November 2022 and 1,500,000 granted to various employees on 28 November 2022 also contain share price
performance conditions, applied in two equal tranches, as follows:
– Tranche 1 of the performance rights vests on the first date after 31 January 2023 that a 30 day Volume Weighted
Average Price of the Company’s shares (ASX:QFE) (VWAP) of 15 cents is achieved; and
– Tranche 2 of the performance rights vests on the first date after 31 January 2024 that a 30 day VWAP of the Company’s
shares (ASX:QFE) WAP of 20 cents is achieved.
Tranche 1 and Tranche 2 expire on 30 June 2025.
The remaining 191,186 of the performance rights granted to various employees on 1 November 2022 and 1,500,000 granted
to various employees on 28 November 2022, vest at various dates contingent on continued employment only. As the grant
date of these performance rights occurred after the employees began rendering services in respect of those grants,
AASB 2 requires the group to commence recognition of the share-based payment expense when the services are
received. Consequently, the group commenced amortisation on 1 July 2022 (for rights granted on 1 November 2022) and
28 November 2022 (for rights granted on 28 November 2022). The valuation inputs reflect the respective grant date fair
values. 4,250,000 of these performance rights were outstanding at the end of the period.
The grant of 3,900,000 performance rights to various employees on 6 October 2023 and 700,000 to Bruce Coombes on
29 November 2023 contain share price performance conditions, applied in two equal tranches, as follows:
– Tranche 1 of the performance rights vests on the first date after 31 January 2024 that a 30 day Volume Weighted
Average Price of the Company’s shares (ASX:QFE) (VWAP) of 15 cents is achieved; and
– Tranche 2 of the performance rights vests on the first date after 31 January 2025 that a 30 day VWAP of the Company’s
shares (ASX:QFE) WAP of 20 cents is achieved.
Tranche 1 and Tranche 2 expire on 30 June 2026.
The grant of 1,939,409 performance rights to various employees on 6 October 2023 and 1,136,364 to Dale Smorgon, 1,107,955
to Michael McConnell and 2,037,030 to Bruce Coombes on 5 December 2022, were granted under the company’s Short
Term Incentive (STI) Equity Sacrifice Plan (STIESP) for directors and employees. Under this plan, directors and employees
may elect to receive part or all of their annual fees or Short Term Incentive awards in shares, issued at the 7 day VWAP as at
1 July 2023, together with a 25% incentive bonus also paid in shares at the same price. The issue price for shares awarded
under this component of the company’s STI plan has been calculated to be $0.055 per share. Performance rights will vest
at the end of the relevant financial year and shares will be issued in lieu of that monetary portion of remuneration or STI for
the full year, after the end of that financial year and any required shareholder approval, and convert into ordinary shares at
the stated issue price set at the beginning of the relevant year. The number of performance rights vested and lapsed under
this scheme is shown in the table above.
16 Share-based payments continued
(b) Performance rights continued
80
Notes to the
financial statements continued
As the grant dates above occurred after the employees began rendering services in respect of those grants, AASB 2
requires the group to commence recognition of the share-based payment expense when the services are received.
Consequently, the group commenced amortisation on 1 July 2023. The valuation inputs reflect the grant dates fair values.
All performance rights convert into one ordinary share in the company upon vesting.
(i)
Fair value of performance rights 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.
For performance rights granted as part of the company’s FY24 Short Term Incentive Equity Sacrifice Plan to directors and
employees, the expected monetary amount of cash STI or fees sacrificed (deemed exercise price) is taken into account in
assessing the fair value of these performance rights.
The model inputs for performance rights granted during the year ended 30 June 2024 included:
Grant date
Code
Exercise
price
Share price
at grant
date
Expected
volatility
Dividend
yield
Risk-free
interest
rate
Fair value at
grant date
per
performance
right
6 Oct 2023
QFEAM
A$–
A$0.051
76.3%
0.0%
4.00%
A$0.005
29 Nov 2023
QFEAM
A$–
A$0.047
76.3%
0.0%
3.95%
A$0.003
Short Term Incentive Equity Sacrifice Plan:
6 Oct 2023
QFEAM
A$0.0550
A$0.051
76.3%
0.0%
4.04%
A$0.017
29 Nov 2023
QFEAM
A$0.0550
A$0.047
76.3%
0.0%
4.00%
A$0.012
16 Share-based payments continued
(b) Performance rights continued
81
QuickFee Limited / Annual Report 2024
Notes to the
financial statements continued
16 Share-based payments continued
(c) Share warrants
As part of the consideration for the establishment of the Wingate credit facility (refer note 6(c)), 5,671,351 share warrants
were issued on 22 December 2023 to Wingate entity ‘Win Finance No. 506 Pty Ltd’. These warrants were exercised for nil
consideration and converted into 5,567,351 ordinary shares of the Company, issued on 19 June 2024.
(i)
Fair value of share warrants granted
The assessed fair value at grant date of share warrants at grant date was determined based on the share price at grant
date and are included in capitalised borrowing costs.
The model inputs for share warrants granted during the year ended 30 June 2024 included:
Grant date
Code
Exercise
price
Share price
at grant
date
Expected
volatility
Dividend
yield
Risk-free
interest
rate
Fair value at
grant date
per
performance
right
21 Dec 2023
QFEAAB
A$–
A$0.051
76.3%
0.0%
3.95%
A$0.051
(d) Expenses arising from share-based payment transactions
Total expenses arising from share-based payment transactions recognised during the period were as follows:
FY24
$’000
FY23
$’000
Share options issued or to be issued under the PROP
49
34
Performance rights issued or to be issued under the PROP
124
178
173
212
Other transactions arising from share-based payment transactions recognised
during the period were as follows:
Share warrants issued as part of establishment of the Wingate credit facility
16(c)
289
–
82
Notes to the
financial statements continued
17 Remuneration of auditors
During the period 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) Auditors of the group – William Buck and related network firms
FY24
$
FY23
$
Audit and review of financial reports
Group
85,000
77,000
Total services provided by William Buck
85,000
77,000
(b) Other auditors and their related network firms
Nil.
18 Loss per share
(a) Basic loss per share
FY24
Cents
FY23
Cents
Basic and diluted loss per share
Total basic and diluted loss per share attributable to the ordinary equity holders
of the company
(1.7)
(3.0)
(b) Reconciliation of loss used in calculating basic and diluted loss per share
FY24
$’000
FY23
$’000
Basic and diluted loss per share
Loss attributable to the ordinary equity holders of the company used in calculating basic
and diluted loss per share
4,666
8,076
(c) Weighted average number of shares used as the denominator
FY24
000s
FY23
000s
Weighted average number of ordinary shares used as the denominator in calculating basic
and diluted loss per share
280,750
268,533
83
QuickFee Limited / Annual Report 2024
Notes to the
financial statements continued
18 Loss per share continued
(d) Information concerning the classification of securities
Share options and performance rights granted are considered to be potential ordinary shares. The outstanding share
options and performance rights are not treated as dilutive because their conversion to ordinary shares would not increase
the loss per share from continuing operations and thus they are not included in the calculation of diluted earnings per share
for the years ended 30 June 2024 and 30 June 2023. These securities could potentially dilute basic earnings per share in
the future. Details relating to the share options and performance rights are set out in note 16(a) and 16(b), respectively.
19 Parent entity financial information
(a) Summary financial information
The individual financial statements for the parent entity, QuickFee Limited, show the following aggregate amounts:
30 June 2024
$’000
30 June 2023
$’000
Statement of financial position
Current assets
322
257
Non-current assets
26,809
25,235
Total assets
27,131
25,492
Current liabilities
266
471
Total liabilities
266
471
Shareholders’ equity
Contributed equity
51,563
47,241
Other reserves
903
957
Accumulated losses
(25,601)
(23,177)
26,865
25,021
Loss for the period
2,424
6,730
Total comprehensive loss
2,424
6,730
84
Notes to the
financial statements continued
19 Parent entity financial information continued
(b) Guarantees entered into by the parent entity
The parent entity has not entered into any guarantees in relation to debts of its controlled entities in the year ended
30 June 2024 (2023: nil)
(c) Contingent liabilities of the parent entity
The parent entity did not have any contingent liabilities as at 30 June 2024 or 30 June 2023.
(d) Contractual commitments for the acquisition of plant or equipment
The parent entity has not entered into any contractual commitments for the acquisition of plant or equipment in the year
ended 30 June 2024 (2023: nil).
(e) Determining the parent entity financial information
The financial information for the parent entity has been prepared on the same basis as the consolidated
financial statements.
(i)
Investments in subsidiaries
Investments in subsidiaries are accounted for at cost in the financial statements of QuickFee Limited.
(ii) Tax consolidation 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.
85
QuickFee Limited / Annual Report 2024
Notes to the
financial statements continued
20 Material accounting policy information
The accounting policies that are material to the group are set out below. The accounting policies adopted are consistent
with those of the previous financial year, unless otherwise stated.
New or amended Accounting Standards and Interpretations adopted
The group has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian
Accounting Standards Board (‘AASB’) that are mandatory for the current reporting period. The impact of these standards
we not considered material.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
The impact of these standards is not expected to have a material impact on the group.
Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board (‘AASB’) and the Corporations Act 2001, as appropriate
for for-profit oriented entities. These financial statements also comply with International Financial Reporting Standards as
issued by the International Accounting Standards Board (‘IASB’).
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the group’s accounting policies. The areas involving
a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial
statements, are disclosed in note 9.
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the group only.
Supplementary information about the parent entity is disclosed in note 19.
Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of QuickFee Limited
(‘company’ or ‘parent entity’) as at 30 June 2024 and the results of all subsidiaries for the year then ended. QuickFee
Limited and its subsidiaries together are referred to in these financial statements as the ‘group’.
Subsidiaries are all those 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 de-consolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between entities in the group are eliminated.
Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted
by the group.
86
Notes to the
financial statements continued
20 Material accounting policy information continued
Principles of consolidation continued
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership
interest, without the loss of control, is accounted for as an equity transaction, where the difference between the
consideration transferred and the book value of the share of the non-controlling interest acquired is recognised directly
in equity attributable to the parent.
Non-controlling interest in the results and equity of subsidiaries are shown separately in the statement of profit or loss
and other comprehensive income, statement of financial position and statement of changes in equity of the group.
Losses incurred by the group are attributed to the non-controlling interest in full, even if that results in a deficit balance.
Where the group loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and non-
controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. The group
recognises the fair value of the consideration received and the fair value of any investment retained together with any gain
or loss in profit or loss.
Going concern basis
The financial report has been prepared on the going concern basis which assumes continuity of normal business activities
and the realisation of assets and settlement of liabilities in the ordinary course of business. In the opinion of management
and the directors, there are reasonable grounds to believe that the group will be able to pay its debts as and when they
become due and payable. This opinion has been formed based on the following information:
• The group’s lending business model is to make payments to professional services firms in advance of the group
receiving the funds for those payments over time from the customers of those firms (its ‘Pay Over time’ product).
This business model requires external debt and equity funding to support the growth in loan receivables, the group’s
continued investment in platform capability and its operational expenditure until it reaches profitability. The group also
operates a ‘PayNow’ business which generates cash receipts in the month services are provided. This business greatly
supports the equity funding requirement of the lending business, with $9.0 million being generated from revenue from
contracts with customers in the current financial year.
• At 30 June 2024, the group had available cash on hand of $6.9 million. Furthermore under the facilities a further
$19.7 million is available to draw to fund further loan book growth. At 30 June 2024 the group had net assets of
$8.6 million and several avenues for additional funding are available to it, in both the debt and equity markets.
• Management has prepared and the Directors have reviewed and approved detailed financial forecasts for the 12 months
ending 30 June 2025. This process has included applying appropriate sensitivities to the group’s sales and cash
forecasts and assessing the resultant impact on funding headroom, debt and working capital requirements and the
group’s ability to work within the requirements of its funding facilities. The range of impacts has been appropriately
considered and reflected within the group’s forecasts and the directors’ assessment of going concern.
87
QuickFee Limited / Annual Report 2024
Notes to the
financial statements continued
20 Material accounting policy information continued
Segment reporting
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 President, North America, Chief Financial Officer and Managing Director, Australia.
Foreign currency translation
The financial statements are presented in Australian dollars, which is QuickFee Limited’s functional and presentation
currency.
Foreign currency transactions
Foreign currency transactions are translated into Australian dollars using the exchange rates prevailing at the dates of
the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the
translation at financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies
are recognised in profit or loss.
Foreign operations
The assets and liabilities of foreign operations are translated into Australian dollars using the exchange rates at the
reporting date. The revenues and expenses of foreign operations are translated into Australian dollars using the average
exchange rates, which approximate the rates at the dates of the transactions, for the period. All resulting foreign exchange
differences are recognised in other comprehensive income through the foreign currency reserve in equity.
The foreign currency reserve is recognised in profit or loss when the foreign operation or net investment is disposed of.
Revenue recognition
The accounting policies for the group’s revenue from contracts with customers are explained in notes 2 and 3.
Income tax
The income tax expense or benefit for the period is the tax payable on that period’s taxable income based on the applicable
income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to
temporary differences, unused tax losses and the adjustment recognised for prior periods, where applicable.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied when
the assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted,
except for:
• When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a
transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting
nor taxable profits; or
• When the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures,
and the timing of the reversal can be controlled and it is probable that the temporary difference will not reverse in
the foreseeable future.
88
Notes to the
financial statements continued
20 Material accounting policy information continued
Income tax continued
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that
future taxable amounts will be available to utilise those temporary differences and losses.
The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting date. Deferred
tax assets recognised are reduced to the extent that it is no longer probable that future taxable profits will be available for
the carrying amount to be recovered. Previously unrecognised deferred tax assets are recognised to the extent that it is
probable that there are future taxable profits available to recover the asset.
Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets
against current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable
authority on either the same taxable entity or different taxable entities which intend to settle simultaneously.
QuickFee Limited (the ‘head entity’) and its wholly-owned Australian subsidiaries have formed an income tax consolidated
group under the tax consolidation regime. The head entity and each subsidiary in the tax consolidated group continue to
account for their own current and deferred tax amounts. The tax consolidated group has applied the ‘separate taxpayer
within group’ approach in determining the appropriate amount of taxes to allocate to members of the tax consolidated group.
In addition to its own current and deferred tax amounts, the head entity also recognises the current tax liabilities (or assets)
and the deferred tax assets arising from unused tax losses and unused tax credits assumed from each subsidiary in the
tax consolidated group.
Assets or liabilities arising under tax funding agreements with the tax consolidated entities are recognised as amounts
receivable from or payable to other entities in the tax consolidated group. The tax funding arrangement ensures that the
intercompany charge equals the current tax liability or benefit of each tax consolidated group member, resulting in neither
a contribution by the head entity to the subsidiaries nor a distribution by the subsidiaries to the head entity.
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the group’s
normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the
reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability
for at least 12 months after the reporting period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the group’s normal operating cycle; it is held
primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no
unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities
are classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
89
QuickFee Limited / Annual Report 2024
Notes to the
financial statements continued
20 Material accounting policy information continued
Cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly
liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash
and which are subject to an insignificant risk of changes in value. For the statement of cash flows presentation purposes,
cash and cash equivalents also includes bank overdrafts, which are shown within borrowings in current liabilities on the
statement of financial position.
Loan receivables and firm settlements outstanding
The accounting policies for the group’s loan receivables, payment processing receivables and firm settlements
outstanding are explained in note 6(a).
Borrowings
Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction costs.
They are subsequently measured at amortised cost using the effective interest method.
Employee benefits
Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be
settled wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities
are settled.
Other long-term employee benefits
The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting date are
measured at the present value of expected future payments to be made in respect of services provided by employees up
to the reporting date 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 reporting date on corporate bonds with terms to maturity and currency that match, as closely as possible, the
estimated future cash outflows.
Share-based payments
Equity-settled and cash-settled share-based compensation benefits are provided to employees.
Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in exchange for
the rendering of services. Cash-settled transactions are awards of cash for the exchange of services, where the amount of
cash is determined by reference to the share price.
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently determined
using either the Binomial or Black-Scholes option pricing model that takes into account the exercise price, the term of the
option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the
expected dividend yield and the risk free interest rate for the term of the option, together with non-vesting conditions that
do not determine whether the group receives the services that entitle the employees to receive payment. No account is
taken of any other vesting conditions.
90
Notes to the
financial statements continued
20 Material accounting policy information continued
Employee benefits continued
Share-based payments continued
The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity over the
vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the
best estimate of the number of awards that are likely to vest and the expired portion of the vesting period. The amount
recognised in profit or loss for the period is the cumulative amount calculated at each reporting date less amounts already
recognised in previous periods.
The cost of cash-settled transactions is initially, and at each reporting date until vested, determined by applying either the
Binomial or Black-Scholes option pricing model, taking into consideration the terms and conditions on which the award
was granted. The cumulative charge to profit or loss until settlement of the liability is calculated as follows:
• during the vesting period, the liability at each reporting date is the fair value of the award at that date multiplied by the
expired portion of the vesting period.
• from the end of the vesting period until settlement of the award, the liability is the full fair value of the liability at the
reporting date.
All changes in the liability are recognised in profit or loss. The ultimate cost of cash-settled transactions is the cash paid
to settle the liability.
Market conditions are taken into consideration in determining fair value. Therefore any awards subject to market
conditions are considered to vest irrespective of whether or not that market condition has been met, provided all other
conditions are satisfied.
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been made.
An additional expense is recognised, over the remaining vesting period, for any modification that increases the total fair
value of the share-based compensation benefit as at the date of modification.
If the non-vesting condition is within the control of the group or employee, the failure to satisfy the condition is treated
as a cancellation. If the condition is not within the control of the group or employee and is not satisfied during the vesting
period, any remaining expense for the award is recognised over the remaining vesting period, unless the award is
forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining
expense is recognised immediately. If a new replacement award is substituted for the cancelled award, the cancelled and
new award is treated as if they were a modification.
Fair value measurement
When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the
fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date; and assumes that the transaction will take place either: in the
principal market; or in the absence of a principal market, in the most advantageous market.
91
QuickFee Limited / Annual Report 2024
Notes to the
financial statements continued
20 Material accounting policy information continued
Fair value measurement continued
Fair value is measured using the assumptions that market participants would use when pricing the asset or liability,
assuming they act in their economic best interests. For non-financial assets, the fair value measurement is based on its
highest and best use. Valuation techniques that are appropriate in the circumstances and for which sufficient data are
available to measure fair value, are used, maximising the use of relevant observable inputs and minimising the use of
unobservable inputs.
Assets and liabilities measured at fair value are classified into three levels, using a fair value hierarchy that reflects the
significance of the inputs used in making the measurements. Classifications are reviewed at each reporting date and
transfers between levels are determined based on a reassessment of the lowest level of input that is significant to the
fair value measurement.
For recurring and non-recurring fair value measurements, external valuers may be used when internal expertise is either
not available or when the valuation is deemed to be significant. External valuers are selected based on market knowledge
and reputation. Where there is a significant change in fair value of an asset or liability from one period to another, an
analysis is undertaken, which includes a verification of the major inputs applied in the latest valuation and a comparison,
where applicable, with external sources of data.
Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of QuickFee Limited, excluding any
costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding
during the financial year, adjusted for bonus elements in ordinary shares issued during the financial year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account
the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the
weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential
ordinary shares.
Goods and Services Tax (‘GST’) and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not
recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part
of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement of
financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing
activities which are recoverable from, or payable to the tax authority, are presented as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority.
92
Notes to the
financial statements continued
20 Material accounting policy information continued
Rounding of amounts
The company is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian Securities and
Investments Commission, relating to ‘rounding-off’. Amounts in this report have been rounded off in accordance with
that Corporations Instrument to the nearest thousand dollars, or in certain cases, the nearest dollar.
New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet
mandatory, have not been early adopted by the group for the annual reporting period ended 30 June 2024. The group
has not yet assessed the impact of these new or amended Accounting Standards and Interpretations.
93
QuickFee Limited / Annual Report 2024
Consolidated entity
disclosure statement
as at 30 June 2024
Name of entity
Entity type
Principal
activities
Place of
business/
country of
incorporation
Ownership
Interest
%
Tax
Residency
QuickFee Limited
Body corporate
Holding company
Australia
N/A
Australia
Franchise Payment Services Pty Ltd Body corporate
Sales and marketing
Australia
100
Australia
QuickFee Australia Pty Ltd
Body corporate
Sales and marketing
Australia
100
Australia
QuickFee Finance Pty Ltd
Body corporate
Sales and marketing
Australia
100
Australia
QuickFee Financing Pty Ltd
Body corporate
Sales and marketing
Australia
100
Australia
QuickFee WG Financing Pty Ltd
Body corporate
Sales and marketing
Australia
100
Australia
QuickFee Group LLC
Body corporate
Holding company
United States
100
United States
QuickFee Finance LLC
Body corporate
Sales and marketing
United States
100
United States
QuickFee GCI LLC
Body corporate
Sales and marketing
United States
100
United States
QuickFee NL Financing LLC
Body corporate
Sales and marketing
United States
100
United States
QuickFee NL Holding LLC
Body corporate
Holding company
United States
100
United States
QuickFee, Inc.
Body corporate
Sales and marketing
United States
100
United States
Basis of preparation
This Consolidated entity disclosure statement (CEDS) has been prepared in accordance with the Corporations Act 2001
and includes information for each entity that was part of the Group as at the end of the financial year in accordance with
AASB 10 Consolidated Financial Statements.
Determination of tax residency
Section 295 (3A)(vi) of the Corporation Act 2001 defines tax residency as having the meaning in the Income Tax Assessment
Act 1997. The determination of tax residency involves judgement as there are different interpretations that could be
adopted, and which could give rise to a different conclusion on residency.
In determining tax residency, the Group has applied the following interpretations:
Australian tax residency
The Group has applied current legislation and judicial precedent, including having regard to the Tax Commissioner’s public
guidance in Tax Ruling TR 2018/5.
Foreign tax residency
Where necessary, the Group has used independent tax advisers in foreign jurisdictions to assist in its determination
of tax residency to ensure applicable foreign tax legislation has been complied with (see section 295(3A)(vii) of the
Corporations Act 2001).
QuickFee Limited (the ‘head entity’) and its wholly-owned Australian subsidiaries have formed an income tax consolidated
group under the tax consolidation regime.
Partnerships and Trusts
None of the entities noted above were trustees of trusts within the Group, partners in a partnership within the Group
or participants in a joint venture within the group.
94
Directors’
declaration
For the year ended 30 June 2024
In the directors’ opinion:
(a) the financial statements and notes set out on pages 44 to 93 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 2024 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.
(c) The information disclosed in the attached consolidated entity disclosure statement is true and correct.
Note 20 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 Managing Director, Australia 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.
Dale Smorgon
Non-Executive Chairman
27 August 2024
95
QuickFee Limited / Annual Report 2024
Level 20, 181 William Street, Melbourne VIC 3000
+61 3 9824 8555
vic.info@williambuck.com
williambuck.com.au
William Buck is an association of firms, each trading under the name of William Buck
across Australia and New Zealand with affiliated offices worldwide.
Liability limited by a scheme approved under Professional Standards Legislation.
Independent auditor’s report to the members of QuickFee Limited
Report on the audit of the financial report
Our opinion on the financial report
In our opinion, the accompanying financial report of QuickFee Limited (the Company) and its subsidiaries
(the Group) is in accordance with the Corporations Act 2001, including:
— giving a true and fair view of the Group’s financial position as at 30 June 2024 and of its financial
performance for the year then ended; and
— complying with Australian Accounting Standards and the Corporations Regulations 2001.
What was audited?
We have audited the financial report of the Group, which comprises:
— the consolidated statement of financial position as at 30 June 2024,
— the consolidated statement of profit or loss and other comprehensive income for the year then ended,
— the consolidated statement of changes in equity for the year then ended,
— the consolidated statement of cash flows for the year then ended,
— notes to the financial statements, including material accounting policy information,
— the consolidated entity disclosure statement, and
— the directors’ declaration.
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 & 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.
Independent auditor’s report
to the members
For the year ended 30 June 2024
96
Independent auditor’s report
to the members continued
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.
Revenue
recognition
Area of focus
(refer also to notes 2, 3 & 20)
As disclosed in Notes 2 and 3 to the
financial statements, the Group has three
distinct non-interest revenue streams
material to the audit, being a) its loan-
related fee revenue; 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.
This is a key audit matter due to the
financial significance and the risk that
revenues are recognised in-advance of the
performance condition being satisfied.
How our audit addressed the
key audit matter
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 considered the adequacy of the
Group’s disclosures in the notes to the
financial report.
97
QuickFee Limited / Annual Report 2024
Independent auditor’s report
to the members continued
Other information
The directors are responsible for the other information. The other information comprises the information
included in the Group’s annual report for the year ended 30 June 2024, but does not include the financial
report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly 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.
Share based
payments
Area of focus
(refer also to notes 7, 16 & 20)
During the financial year, the Group
issued options and performance rights
over common shares to employees of the
Group, of which includes key
management personnel, in order to
provide them with long term incentives.
This is a key audit matter as the valuation
of share-based payments is complex and
subject to significant management
estimates and judgements.
How our audit addressed the
key audit matter
Our audit procedures included:
— Verifying the key terms of equity
settled share-based payments in
respect of the award of options over
common shares for rendering of
services by employees;
— Assessing the fair value calculation of
options granted by checking the
accuracy of the inputs to the Binomial
option pricing model adopted for that
purpose;
— Verifying for share based payments
with market conditions that the
independent valuer engaged by the
Group had appropriate qualifications
to complete the valuation; and
— Testing the accuracy of the share-
based payments amortisation over the
vesting periods and recording of
expense in the profit or loss statement
and increment to share based
payment reserve.
We also considered the adequacy of the
Group’s disclosures in the notes to the
financial report.
98
Independent auditor’s report
to the members continued
Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of:
— the financial report (other than the consolidated entity disclosure statement) that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001; and
— the consolidated entity disclosure statement that is true and correct in accordance with the Corporations
Act 2001, and
for such internal control as the directors determine is necessary to enable the preparation of:
— the financial report (other than the consolidated entity disclosure statement) that gives a true and fair
view and is free from material misstatement, whether due to fraud or error; and
— the consolidated entity disclosure statement that is true and correct and is free of 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 have 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.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and
Assurance Standards Board website at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our auditor’s report.
99
QuickFee Limited / Annual Report 2024
Independent auditor’s report
to the members continued
Report on the Remuneration Report
Our opinion on the Remuneration Report
In our opinion, the Remuneration Report of QuickFee Limited, for the year ended 30 June 2024,
complies with section 300A of the Corporations Act 2001.
What was audited?
We have audited the Remuneration Report included in of the directors’ report for the year ended 30 June
2024
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
A. A. Finnis
Director
Melbourne, 27 August 2024
100
Shareholder
information
The shareholder information set out below was applicable as at 12 August 2024.
A. Distribution of equity securities
Analysis of numbers of shareholders by size of holding:
Number of shares held
Number of
holders
Number of
shares
%
of shares
1 to 1,000
300
183,995
0.06
1,001 to 5,000
906
2,475,167
0.75
5,001 to 10,000
381
3,025,641
0.91
10,001 to 100,000
739
24,505,787
7.39
100,001 and over
230
301,515,943
90.89
Total
2,556
331,706,533
100.00
There were 84 holders of less than a marketable parcel of ordinary shares.
Analysis of numbers of option holders by size of holding:
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
5
41,665
0.67
10,001 to 100,000
35
2,170,832
35.04
100,001 and over
15
3,983,333
64.29
Total
55
6,195,830
100.00
Analysis of numbers of performance right holders by size of holding:
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
1
94,602
0.67
100,001 and over
10
14,003,906
99.33
Total
11
14,098,508
100.00
101
QuickFee Limited / Annual Report 2024
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:
Ordinary shares
Name
Number
held
Percentage
of issued
shares
UBS Nominees Pty Ltd
69,311,583
20.90
Derida Pty Ltd
23,680,000
7.14
Jamada Holdings Pty Limited
16,862,863
5.08
HSBC Custody Nominees (Australia) Limited – A/C 2
12,500,347
3.77
Citicorp Nominees Pty Limited
12,358,992
3.73
HSBC Custody Nominees (Australia) Limited
10,994,521
3.31
Payroc World Access LLC
10,000,000
3.01
Mr Kenneth Archie Gray & Mrs Julianne Gray
9,996,753
3.01
HTI Management Pty Ltd
9,794,013
2.95
Rubino Group Pty Ltd
8,513,916
2.57
J P Morgan Nominees Australia Pty Limited
5,433,189
1.64
Wingate Direct Investments Pty Ltd
4,680,000
1.41
Bonec Pty Limited
4,363,734
1.32
Mr James Ashley Drummond
3,499,241
1.05
HTT Management Pty Limited
3,251,084
0.98
Mr Alistair Ian Swain
3,025,349
0.91
B&E Lewin Investments Pty Limited
2,893,000
0.87
Half Full Pty Ltd
2,782,187
0.84
Wingate Investment Partners 3 Pty Ltd
2,722,249
0.82
Yeandle Superannuation Pty Ltd
2,646,752
0.80
Total
219,309,773
66.11
Add: remaining holders
112,396,760
33.89
Total quoted ordinary shares on issue
331,706,533
100.00
102
Shareholder
information continued
B. Equity security holders continued
Unquoted equity securities
Class
Number on
issue
Number of
holders
Options
6,195,830
55
Performance rights
14,098,508
11
The following holders have unquoted securities representing more than 20% of each class:
• Options: none; and
• Performance rights: Jennifer Warawa (3,250,000)
Bruce Coombes and associated entities (3,237,030)
C. Substantial holders
QuickFee Limited has received the following substantial shareholder notifications:
number held
PERCENTAGE
AS AT
EFFECTIVE
DATE
Thorney Investment Group and associated entities, effective as at 23 May 2023
54,192,958
20.07
Dale Smorgon (non-executive Chairman) – direct and indirect holdings,
effective as at 9 May 2024
27,839,451
8.78
HTI Management Pty Limited and associated entities, effective as at 9 May 2024
23,041,850
7.26
Bruce Coombes (executive director) – direct and indirect holdings, effective as at 19 June 2024
21,226,597
6.40
Acorn Capital Limited, effective as at 19 June 2024
18,700,000
5.64
The above substantial holder details are in accordance with the most recent notification received by QuickFee Limited
(or in the case of directors, the company’s share register) as at the preparation date of this shareholder information report.
Substantial holders are only required to provide notification for each 1% or more change in holdings. Accordingly, the
information disclosed above does not necessarily represent the holding position as at the preparation date of this
shareholder information report.
103
QuickFee Limited / Annual Report 2024
Shareholder
information continued
D. Voting rights
The voting rights attaching to each class of equity securities are set out below:
(a) Ordinary shares: on a show of hands every member present at a meeting in person or by proxy shall have one vote
and upon a poll each share shall have one vote.
(b) Options: no voting rights.
(c) Performance rights: no voting rights.
E. Other information
QuickFee Limited used the cash and assets in a form readily convertible to cash that it had at the time of admission to ASX
in a way consistent with its business objectives.
104
Corporate
directory
Directors
Dale Smorgon
Non-Executive Chairman
Michael McConnell
Non-Executive Director
Bruce Coombes
Executive Director and Managing Director, Australia
Secretary
Simon Yeandle
Registered office
Share register
Boardroom Pty Limited
Level 8, 210 George Street
Sydney NSW 2000
Telephone: +61 (0)2 9290 9600
Auditor
William Buck Audit (Vic) Pty Ltd
Level 20, 181 William Street
Melbourne VIC 3000
Telephone: +61 (0)3 9824 8555
Solicitors
Arnold Bloch Leibler
Level 24, 2 Chifley Square
Sydney NSW 2000
Telephone: +61 (0)2 9226 7100
Bankers
Banc of California
Westpac Banking Corporation
Stock exchange listings
QuickFee Limited shares are listed on the
Australian Securities Exchange (ASX code: QFE)
Website
quickfee.com
Suite 4.07, 10 Century Circuit
Norwest NSW 2153 Australia
Telephone: +61 (0)2 8090 7700
Principal place of business
Suite 4.07, 10 Century Circuit
Norwest NSW 2153 Australia
Telephone: +61 (0)2 8090 7700
5601 Democracy Drive, Suite 205
Plano Texas 75024 United States
Telephone: +1 (844) 968 4387
Typesetting by Tammy Norgren, 0403 64 62 64
QuickFee Annual Report 2024