Beforepay : Appendix 4D and FY22 Half Year Report

For personal use only

Beforepay Group Limited

Appendix 4D - Half-year Report

1. Company details

Name of entity:	Beforepay Group Limited
ABN:	63 633 925 505
Reporting period:	For the period ended 31 December 2021
Previous period:	For the period ended 31 December 2020

2. Results for announcement to the market

		$
Revenues from ordinary activities	up 511.5% to	5,954,893
Loss from ordinary activities after tax attributable to the owners
of Beforepay Group Limited	up 485.8% to	(19,628,494)
Loss for the period attributable to the owners of Beforepay Group Limited	up 485.8% to	(19,628,494)

Dividends

There were no dividends paid, recommended or declared during the current financial period.

Comments

The loss for the Group after providing for income tax amounted to $19,628,494 (31 December 2020: $3,350,486).

Refer to 'Review of operations' in the Directors' Report for further commentary on the results for the half-year ended 31 December 2021.

3. Net tangible assets

	Reporting	Previous
	period	period
	$	$
Net tangible assets per ordinary security	(1.35)	0.07

Right-of-use assets and lease liabilities have been excluded from the net tangible assets calculation.

The net tangible assets per ordinary share reported in the comparative period (31 December 2020) has been calculated based on 23,865,600 ordinary shares being on issue. This is the number of shares that would have been in existence at the end of that reporting period had the share split, which occurred during the current period, taken place as at

1 July 2020.

4. Dividends

Current period

There were no dividends paid, recommended or declared during the current financial period.

Previous period

There were no dividends paid, recommended or declared during the previous financial period.

Beforepay Group Limited

Appendix 4D - Half-year Report - 31 December 2021

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Appendix 4D - Half-year Reportcontinued

For personal use only

5. Audit qualification or review

Details of audit/review dispute or qualification (if any):

The financial statements were subject to a review by the auditors and the review report is attached as part of the Interim Report.

6. Attachments

Details of attachments (if any):

The Interim Report of Beforepay Group Limited for the period ended 31 December 2021 is attached.

7. Signed

As authorised by the Board of Directors

Signed

Brian Hartzer

Chairman

Sydney

28 February 2022

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For personal use only

Interim Report

31 December 2021

Beforepay Group Limited

ABN 63 633 925 505

31

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For personal use only

Contents

Directors' Report

Auditor's Independence Declaration� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �6

Statement of Profit or Loss and Other Comprehensive Income Statement of Financial Position

Statement of Changes in Equity� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �9 Statement of Cash Flows� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

Notes to the Financial Statements � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 11

Directors' Declaration

Independent Auditor's Review Report

Corporate Directory� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

2	Beforepay Group Limited
	Interim Report - 31 December 2021

For personal use only

Directors' Report

31 December 2021

The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'Group') consisting of Beforepay Group Limited (referred to hereafter as the 'company' or 'parent entity') and the entities it controlled at the end of, or during, the period ended 31 December 2021.

Directors

The following persons were directors of Beforepay Group Limited during the whole of the financial period and up to the date of this report, unless otherwise stated:

Brian Hartzer	Chairman (appointed 5 July 2021)
Danny Moss	Non-Executive Director
Stefan Urosevic	Non-Executive Director
Patrick Tuttle	Non-Executive Director
Natasha Davidson	Non-Executive Director
Luke Bortoli	Non-Executive Director (appointed 1 February 2022)
Tarek Ayoub	Executive Director (resigned 19 July 2021)
Guo Fang Mao (Dean)	Non-Executive Director (resigned 19 July 2021)

Principal activities

During the financial period the principal continuing activities of the Group consisted of providing finance to its customers by way of pay advances.

Dividends

There were no dividends paid, recommended or declared during the current or previous financial period.

Review of operations

Revenue from ordinary activities in the current period was $5,954,893 representing an increase of 511% on the corresponding period. This was derived from $132,004,250 in customer pay advances originated in the current period, versus $19,917,900 in the prior corresponding period representing a 563% increase.

Net transaction margin turned positive in the current period, amounting to $360,169 (December 2020: loss of $1,008,537). Net transaction margin comprises Beforepay income less direct financing costs, direct service costs in facilitating pay advances to customers, and expected credit losses (transaction losses).

Net loss before tax in the current period is $19,628,494 (31 December 2020; loss of $3,350,486). The loss in the current period includes the following significant and/or one-off items; IPO related costs of $2,135,480; convertible note issuance costs of $171,273; fair value adjustment of convertible notes on hand at period end of $3,310,782; one‑off settlement charge of $1,584,000 and employee benefit expense (share-based payments) of $402,389. Net loss before tax removing these non-recurring items is $12,024,570.

Beforepay Group Limited		3
Interim Report - 31 December 2021