CODEIFAI LIMITED — Annual Report 2020

Feb 25, 2021

1. Company details

Name of entity: YPB Group Ltd ACN: 108 649 421 Reporting period: For the year ended 31 December 2020 Previous period: For the year ended 31 December 2019

2. Results for announcement to the market

					2020	2019
		$’000	%		$’000	$’000
Revenues from ordinary activities	down	503	45.0%	to	616	1,119
Loss from ordinary activities after
tax for the year attributable to
the owners of YPB Group Ltd	up	2,737	34.3%	to	(10,724)	(7,987)
Loss for the year attributable to
the owners of YPB Group Ltd	up	2,737	34.3%	to	(10,724)	(7,987)

Comments

The loss for the Consolidated Entity, after providing for income tax amounted to $10,724,000 (2019: $7,987,000). The operating loss includes a number of non-cash and significant items including fair value adjustments, share-based payments and foreign exchange losses which leaves an underlying cash outflow from operations of $3,462,000 (2019: $4,719,000). Revenue for the year was $616,000 (2019: $1,119,000) which represents a 45% decrease from the prior year.

3. Net tangible assets/(liabilities)

. Net tangible assets/(liabilities)
	2020	2019
	Cents	Cents
Net tangible assets/(liabilities) per ordinary security	(0.02)	(0.08)

The net tangible assets/(liabilities) backing per ordinary security of (0.02) cents presented above is inclusive of right-of-use assets and lease liabilities. The net tangible asset/(liabilities) backing per security, as at 31 December 2020, would decrease to (0.019) cents if right-of-use assets were excluded, and lease liabilities were included in the calculation.

Net tangible assets are showing a negative value for the reporting and comparative periods due to the majority of recorded assets being intangible.

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4. Gain and loss of control over entities

On 17 September 2020, the Consolidated Entity lost control of three non-operating dormant entities domiciled in Australia as these were deregistered with ASIC as of that date.

A further two non-operating dormant entities domiciled in Australia are currently under strike-off action with ASIC and the Consolidated Entity still maintains control over them.

On 29 December 2020, the Consolidated Entity lost control of one of the entities domiciled in USA as this was a non-operating dormant entity and deregistered with the California Secretary of State as of that date.

There were no gain and loss of control over entities for the year ended 31 December 2019.

Further details are contained in Note 15 to the financial statements.

5. 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.

6. Dividend reinvestment plans

There are no dividend reinvestment plans for the year ended 31 December 2020 (2019: Nil).

7. Details of associates and joint venture entities

No changes since the previous annual report was released.

8. Foreign entities

Details of origin of accounting standards used in compiling the report:

There has been no change in foreign-owned subsidiaries to those reported for the year ended 31 December 2020 other than as outlined in item 4 above. All group entities comply with International Financial Reporting Standards (‘IFRS’).

9. Audit qualification or review

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

The financial statements for the year ended 31 December 2020 are in the process of being audited.

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10.Attachments

Details of attachment (if any): Not applicable.

11.Signed

==> picture [110 x 41] intentionally omitted <==

John Houston Date: 26 February 2021

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YPB Group Ltd ACN: 108 649 421

Full Year Preliminary Report 31 December 2020

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YPB Group Ltd Contents For the year-ended 31 December 2020

Contents

Consolidated statement of profit or loss and other comprehensive income	6
Consolidated statement of financial position	7
Consolidated statement of changes in equity	8
Consolidated statement of cash flows	10
Notes to the consolidated financial statements	11

5

YPB Group Ltd Consolidated statement of profit or loss and other comprehensive income For the year ended 31 December 2020

Note Revenue 2 Expenses Consulting Depreciation and amortisation expense Directors’ fees Employee benefits expense Finance costs 3 Impairment of goodwill and other intangible assets Marketing costs Production costs Professional fees Rental expenses Research and development costs Regulatory expenses Share-based payments Travelling expenses Other expenses Gain/(loss) on extinguishment of financial liabilities via equity settlement Exchange loss Loss before income tax (expenses)/benefit 4 Income tax (expense)/benefit Loss after income tax (expense)/benefit from continuing operations for the full-year attributable to the owners of YPB Group Ltd Other comprehensive income Items that may be reclassified subsequently to profit or loss Exchange differences on translation of foreign operations Other comprehensive income for the full-year, net of tax Total comprehensive loss for the year period attributable to the owners of YPB Group Ltd Basic and diluted earnings per share 17	2020 2019 $’000 $’000 616 1,119 (706) (1,760) (225) (223) 45 (82) (2,064) (2,399) (231) (394) - (2,006) (135) (313) (36) (176) (417) (355) (77) (214) (355) (319) (96) (180) (161) (104) (65) (277) (836) (619) (4,828) 261 (1,148) (64)
	(10,719) (8,105) (5) 118
	(10,724) (7,987) 1,011 6
	1,011 6
	(9,713) (7,981)
	Cents Cents (0.61) (0.80)

The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.

6

YPB Group Ltd Consolidated statement of financial position As at 31 December 2020

Note Assets Current assets Cash and cash equivalents 5 Trade and other receivables 6 Other assets 7 Inventories 8 Non-current assets Plant and equipment 9 Right-of-use assets 9 Intangibles 10 Total assets Liabilities Current liabilities Trade and other payables 11 Lease liabilities Financial liabilities 12 Non-current liabilities Lease liabilities Total liabilities Net assets Equity Issued capital 13 Reserves 14 Accumulated losses Total equity	2020 2019 $’000 $’000 1,559 774 312 269 385 115 216 240
	2,472 1,398
	61 119 78 234 5,913 6,500
	6,052 6,853
	8,524 8,251 1,862 1,421 68 141 1,462 1,462
	3,392 3,024
	- 75
	3,392 3,099 5,132 5,152
	77,665 69,126 4,981 2,499 (77,514) (66,473)
	5,132 5,152

The above consolidated statement of financial position should be read in conjunction with the accompanying notes.

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YPB Group Ltd Consolidated statement of changes in equity For the year ended 31 December 2020

Consolidated Balance at 1 January 2020 Reclassification of prior periods foreign exchange gain/(loss) relating to net investment entities Prior period adjustment1 Adjusted balance at 1 January 2020 Loss after income tax benefit for the year Other comprehensive income for the year, net of tax Total comprehensive loss for the year Transactions with owners in their capacity as owners: Shares issued, net of transaction costs Performance rights exercised during the year Performance rights issued during the year Options granted during the year Options lapsed during the year Balance at 31 December 2020	Issued capital Foreign currency translation reserve Issued options Share- based payment reserve Accumulated losses Total equity $’000 $’000 $’000 $’000 $’000 $’000 69,126 1,139 960 400 (66,950) 4,675 - 791 - - (791) - - - - - (9) (9)
	69,126 1,930 960 400 (67,750) 4,666 - - - - (10,724) (10,724) - 1,011 - - - 1,011
	- 1,011 - - (10,724) (9,713) 7,978 - - - - 7,978 561 - - (561) - - - - - 161 - 161 - - 2,040 - - 2,040 - - (960) - 960 -
	77,665 2,941 2,040 - (77,514) 5,132

Note 1: The prior period adjustment arose from YPB Limited (“YPB HK”), a wholly-owned subsidiary of the Consolidated Entity, resulting from the audit of its financial statements for periods 1 April 2019 to 31 March 2020 completed during 2020.

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

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YPB Group Ltd Consolidated statement of changes in equity For the year ended 31 December 2020

Consolidated Balance at 1 January 2019 Adjustment on initial application of AASB 16, net of tax Prior period adjustment2 Adjusted balance at 1 January 2019 Loss after income tax benefit for the year Other comprehensive income for the year, net of tax Total comprehensive loss for the year Transactions with owners in their capacity as owners: Shares issued, net of transaction costs Options lapsed during the year Options granted during the year Share-based payments Conversion of convertible notes to equity Balance at 31 December 2019	Issued capital Foreign currency translation reserve Issued options Share- based payment reserve Accumulated losses Total equity $’000 $’000 $’000 $’000 $’000 $’000 61,980 1,133 1,106 1,146 (58,707) 6,658 - - - - 9 9 - - - - (477) (477)
	61,980 1,133 1,106 1,146 (59,175) 6,190 - - - - (7,987) (7,987) - 6 - - - 6
	- 6 - - (7,987) (7,981) 5,950 - - - - 5,950 - - (212) - 212 - - - 66 - - 66 1,146 - - (746) - 400 50 - - - - 50
	69,126 1,139 960 400 (66,950) 4,675

Note 2: The prior period adjustment arose from YPB Limited (“YPB HK”), a wholly-owned subsidiary of the Consolidated Entity, resulting from the audit of its financial statements for periods 1 April 2014 to 31 March 2019 completed during 2020.

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes

9

YPB Group Ltd Consolidated statement of cash flows For the year ended 31 December 2020

Note Cash flows from operating activities Receipts from customers Payments to suppliers and employees Interest received Finance costs Net cash used in operating activities 16 Cash flows from investing activities Payments for plant and equipment Funds on deposit in escrow Net cash used in investing activities Cash flows from financing activities Proceeds from issue of shares (net of costs) Proceeds from borrowings Repayment of borrowings Payment of lease liabilities Net cash from financing activities Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the financial year Effect of movements in exchange rates on cash held Cash and cash equivalents at the end of the financial year 6	2020 2019 $’000 $’000 548 1,523 (3,780) (5,856) 2 3 (219) (370)
	(3,449) (4,700)
	(24) (14) (130) -
	(154) (14)
	3,949 5,389 1,200 1,000 (600) (1,207) (148) (162)
	4,401 5,020
	798 306 774 487 (13) (19) 1,559 774

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.

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YPB Group Ltd Notes to the consolidated financial statements For the year ended 31 December 2020

Note 1. Operating segments

The Consolidated Entity is organised into operating segments as outlined below.

Management determines operating segments based on the internal reports that are reviewed and used by the Board of Directors (who are identified as the Chief Operating Decision Makers ('CODM')) in assessing performance and in determining the allocation of resources.

The CODM reviews EBITDA (earnings before interest, tax, depreciation and amortisation). The accounting policies adopted for internal reporting to the CODM are consistent with those adopted in the consolidated financial statements.

Types of products and services

For the year ended 31 December 2020, management considers the company to offer its client base a complete end-to-end service and product offering, hence considering its main operations to be represented by one business segment.

The bundled “complete solution offering” encompasses a range of products and services which are available to customers, including:

• Covert forensic products which are invisible particles (‘tracers’) fused into a product or packaging during or after the manufacturing process and are detectable using YPB’s proprietary scanner or smartphone mobile devices.

• Forensic laboratory services for the examination of counterfeit products.

• Security consulting services provided to governments, corporations and intellectual property owners for the deterrence of counterfeiting, grey markets, product diversions and fraud.

Geographical segment information

2020 In $’000 External revenue Interest income Other income Total revenue Geographical assets 2019 In $’000 External revenue Interest income Other income Total revenue Geographical assets	Reportable segments Australia People’s Republic of China Thailand United States of America Total 201 328 45 - 574 2 7 - - 9 33 - - - 33
	236 335 45 - 616
	1,809 352 435 5,928 8,524 Reportable segments Australia People’s Republic of China Thailand United States of America Total 279 257 284 206 1,026 6 - - - 6 - 87 - - 87
	285 344 284 206 1,119
	808 400 515 6,528 8,251

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YPB Group Ltd Notes to the consolidated financial statements For the year ended 31 December 2020

Note 2. Revenue

Revenue Sale of goods and services Other revenue Interest Other income	Consolidated 2020 2019 $’000 $’000 574 1,029 2 3 40 87
	616 1,119

During the year, the Group received a total of $40,000 (2019: nil) as subsidies from the government of local jurisdictions relating to the various COVID-19 financial assistance packages such as the Cash Flow Boosts 1 and 2 in Australia, and rental and social security insurance subsidies in China.

Note 3. Finance cost

Note Interest and finance charges paid/payable for lease liabilities and financial liabilities not at fair value through profit or loss 4	Consolidated 2020 2019 $’000 $’000 231 394
	231 394

Note 4. Loss for the year

The loss for the year includes the following expenses:

Note Finance costs 3 Research and development costs Depreciation and amortisation Inventories written off Bad debts written off Impairment of intangible assets Rental expense on operating leases – minimum lease payments Loss/(gain) on extinguishment of financial liabilities via equity settlement	Consolidated 2020 2019 $’000 $’000 231 394 355 319 225 223 13 - 33 - - 2,006 77 214 4,828 (261)
	5,762 2,895

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YPB Group Ltd Notes to the consolidated financial statements For the year ended 31 December 2020

Note 5. Cash and cash equivalents

Cash on hand Cash at bank Undeposited funds	Consolidated 2020 2019 $’000 $’000 2 2 1,545 772 12 -
	1,559 774

Note 6. Trade and other receivables

Trade receivables Less: allowance for doubtful debts GST/VAT receivables Other receivables	Consolidated 2020 2019 $’000 $’000 137 128 (53) (56)
	84 72 205 147 23 50
	312 269

Note 7. Other assets

Escrow account – (i) Rental deposits Prepaid rent Prepayments Other receivables	Consolidated 2020 2019 $’000 $’000 130 - 58 80 4 16 192 14 1 5
	385 115

(i): On 6 October 2020, the Group deposited $130,000 into an escrow account for the purpose of a commercial dispute against an external party. The monies are placed in an interest-bearing account for a period of six months from the date of deposit.

Note 8. Inventories

Finished goods – at cost Less: provision for slow-moving stock	Consolidated 2020 2019 $’000 $’000 218 312 (2) (72)
	216 240

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YPB Group Ltd Notes to the consolidated financial statements For the year ended 31 December 2020

Note 9. Plant and equipment & Right-of-use assets

Plant and equipment – at cost Less: accumulated depreciation	Consolidated 2020 2019 $’000 $’000 552 804 (491) (451)
	61 353

Reconciliations

Reconciliations of the written down values at the beginning and end of the current and previous financial years are set out below:

	Right-of-use	Plant and	Total
	assets	equipment
Consolidated	$’000	$’000	$’000
Balance at 1 January 2019	-	184	184
Recognition of initial application of AASB 16	381	-	381
Adjusted balance at 1 January 2019	381	184	565
Additions	-	14	14
Depreciation expense	(147)	(76)	(223)
Exchange differences	-	(3)	(3)
Balance at 31 December 2019	234	119	353
Balance at 1 January 2020	234	119	353
Additions	-	27	27
Depreciation expense	(144)	(81)	(225)
Exchange differences	(12)	(4)	(16)
Balance at 31 December 2020	78	61	139

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YPB Group Ltd Notes to the consolidated financial statements For the year ended 31 December 2020

Note 10. Intangibles

Goodwill – at cost Less: Accumulated impairment losses Intellectual property – at cost Less: Accumulated amortisation Less: Accumulated impairment losses Customer relationships – at cost Less: Accumulated amortisation Less: Accumulated impairment losses Patent licence rights – at cost Less: Accumulated impairment losses	Consolidated 2020 2019 $’000 $’000 3,089 3,089 (3,089) (3,089)
	- -
	16,250 16,250 (4,942) (4,942) (11,308) (11,308)
	- -
	206 206 (28) (28) (178) (178)
	- -
	7,738 8,506 (1,825) (2,006)
	5,913 6,500

Reconciliations

Reconciliations of the written down values at the beginning and end of the current and previous financial years are set out below:

Consolidated Balance at 31 December 2019 Balance at 1 January 2020 Effect of movement in exchange rates Balance at 31 December 2020	Patent licence rights Total $’000 $’000 6,500 6,500
	6,500 6,500 (586) (586)
	5,914 5,914

Intangible assets, other than goodwill, have finite useful lives. The current period amortisation charge for intangible assets is included under the depreciation and amortisation expense in the consolidated statement of profit or loss and other comprehensive income.

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YPB Group Ltd Notes to the consolidated financial statements For the year ended 31 December 2020

Patent Licence Rights

Effective in December 2017, the Group acquired MotifMicro’s patented licence rights to develop and commercialise its secure smartphone readable authentication technology. The non-replicable invisible micro-barcode technology works whereby the smartphone becomes the authentication device for uncopiable, invisible and indestructible physical marking technology.

In February 2018, a specific milestone under the agreement was successfully achieved with MotifMicro under which an additional $851,000 was payable to the vendors. The corresponding payable was settled via the issue of ordinary shares in October 2018.

As the technology was still in the development phase and not commercially available for use during the year ended 31 December 2020, the patent licence rights have not been amortised. The progress of the MotifMicro development in 2020 was advanced through a number of technological achievements together with two customers that signed first-adopter agreements in 2019 to expedite its commercialisation in the market. The company is pursuing further opportunities to commercially release MotifMicro in the near future.

Management is in the process of obtaining an independent valuation of the Patent Licence Rights to support the carrying value as at 31 December 2020. Details of the valuation method and key assumptions will be disclosed in the audited annual report.

Note 11. Trade and other payables

Trade payables Other payables and accruals	Consolidated 2020 2019 $’000 $’000 972 781 890 640
	1,862 1,421

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YPB Group Ltd Notes to the consolidated financial statements For the year ended 31 December 2020

Note 12. Financial liabilities

Convertible notes (Sophisticated investors) – (i)	Consolidated 2020 2019 $’000 $’000 1,462 1,462
	1,462 1,462

(i): These convertible notes will accrue interest on their face value daily at an interest rate of 10% per annum, and the noteholders may elect by issuing a conversion notice to the Group to convert the note on or prior to, the maturity date of 22 October 2021.

As at 31 December 2020, $12,000 (2019: $12,000) of convertible loan notes interest was accrued.

(ii): During the year, the Consolidated Entity obtained a total of $1,200,000 (2019: Nil) of short-term borrowings from a related party to the Consolidated Entity, repayable within 180 days from the commencement date, and at an interest of 8% per annum (or part thereof).

$600,000 of the short-term borrowings was to be repaid via issuance of 600,000,000 shares at $0.001 per share, and 600,000,000 unquoted options at $0.002 per option. The remaining $600,000 of shortterm borrowing was to be repaid in cash.

On 31 July 2020, the first short-term borrowing of $600,000 was repaid by issue of shares. The fair value of the shares at the time of payment was $3,000,000, and the fair value of the unquoted options was valued at $1,494,000 using the Binomial Tree Method. This resulted in a net loss on settlement of $4,440,000 which is included in loss on extinguishment of financial liabilities via equity settlement in the consolidated statement of profit or loss.

The second short-term borrowing of $600,000 was repaid on 30 October 2020 in cash along with the accrued interest. No short-term borrowing is outstanding as at 31 December 2020 (2019: Nil).

Total interest cost of the two short-term borrowings paid during the year was $37,000 (2019: Nil).

Note 13. Equity – Issued capital

Consolidated	2020	2019	2020	2019
	Shares	Shares	$’000	$’000
Ordinary shares – fully paid	4,228,358,979	1,694,369,386	77,665	69,126

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YPB Group Ltd Notes to the consolidated financial statements For the year ended 31 December 2020

Movements in ordinary share capital

Details Date Balance 1 January 2020 Performance rights exercised and converted 22 June 2020 Share placements 13 July 2020 Issues to extinguish liabilities 13 July 2020 Performance rights exercised and converted 14 July 2020 Issued for repayment of loan 31 July 2020 Issues to extinguish liabilities 31 July 2020 Share placements 27 August 2020 Share placements 21 October 2020 Performance rights exercised and converted 5 November 2020 Issued under share-based payments 5 November 2020 Less: Transaction costs on shares issued, net of tax Balance 31 December 2020

Shares $’000 1,694,369,386 69,126 12,000,000 60 75,000,000 150 45,000,000 180 69,424,658 347 600,000,000 3,000 170,028,571 850 260,000,000 650 1,272,084,848 3,600 4,000,000 20 26,451,516 133 (451)

4,228,358,979 77,665

Ordinary shares

Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the company in proportion to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the company does not have a limited amount of authorised capital. On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one vote.

Note 14. Equity – Reserves

Note Issued options reserve (a) Share-based payment reserve (b) Foreign currency translation reserve (c)	Consolidated 2020 2019 $’000 $’000 2,040 960 - 400 2,941 1,139
	4,981 2,499

• (a) Issued options reserve

The option reserve records items recognised as expenses on valuation of share options issued.

Details Date Balance 1 January 2020 Options lapsed 4 March 2020 Options lapsed 19 May 2020 Options granted 31 July 2020 Options lapsed 1 September 2020 Balance	Options $’000 343,402,313 960 (1,000,000) (60) (272,846,758) (893) 600,000,000 2,040 (5,555,555) (7)
	664,000,000 2,040

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YPB Group Ltd Notes to the consolidated financial statements For the year ended 31 December 2020

• (b) Share-based payment reserve

The share-based payment reserve is used to recognise the value of equity benefits provided to employees and directors as part of their remuneration, and other parties as part of their compensation for services rendered.

Details Date Balance 1 January 2020 Performance Rights exercised and converted to ordinary shares 22 June 2020 Performance rights lapsed 5 Feb 2020 Performance Rights issued under share-based payments January to June 2020 Performance Rights exercised and converted to ordinary shares 14 July 2020 Performance Rights issued under share-based payments July to December 2020 Performance Rights exercised and converted to ordinary shares 5 November 2020 Balance 31 December 2020

$’000 399 (60) (1) 29 (347) 133 (153)

-

• (c) Foreign currency translation reserve

The translation reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign operations.

Note 15. Interests in subsidiaries

The consolidated financial statements incorporate the assets, liabilities, and results of the following subsidiaries:

ubsidiaries:
		Ownership	Interest
	Principal Place of Business /	2020	2019
Name	Country of Incorporation	%	%
YPB Limited	Hong Kong	100	100
YPB Technology (Beijing) Ltd	People’s Republic of China	100	100
Product ID & Quality Systems (Beijing) Ltd	People’s Republic of China	100	100
YPB Group (USA) Inc.	USA	100	100
YPB Intellectual Product Protection Inc.	USA	100	100
YPB Group International Co., Ltd	Thailand	100	100
YPB Group Co., Ltd	Thailand	100	100
nTouch Agency Pty Ltd	Australia	100	100
nTouch Pty Ltd	Australia	100	100
nTouch IP Pty Ltd	Australia	100	100
YPB Product Development Pty Ltd	Australia	100	100

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YPB Group Ltd Notes to the consolidated financial statements For the year ended 31 December 2020

During the year, the Consolidated Entity restructured the legal entity organisation structure, and the following subsidiaries were deregistered as a result:

	Principal Place of	Ownership	Interest
Date of	Business / Country of	2020	2019
Name Deregistration	Incorporation	%	%
Brand Reporter Pty Ltd 17 September 2020	Australia	-	100
nTouch Holdings Pty Ltd 17 September 2020	Australia	-	100
Wall Mall Pty Ltd 17 September 2020	Australia	-	100
YPB Print Solutions Inc. 29 December 2020	USA	-	100
ote 16. Reconciliation of loss after income tax to net cash used in operating activities
		Consolidated
		2020	2019
		$’000	$’000
Loss after income tax benefit for the year		(10,724)	(7,987)
Adjustments for:
Foreign exchange differences		1,055	(58)
Depreciation and amortisation expense		225	223
Impairment of intangible assets		-	2,006
Option expense		-	67
Share-based payments		161	38
Finance costs		12	25
Equity-settled transactions		285	1,111
Net loss on settlement of debts		4,828	(261)
Provision for slow-moving stocks		-	72
Change in operating assets and liabilities, net of the effects of
purchase and disposals of subsidiaries:
(Increase)/decrease in trade and other receivables		(43)	342
(Increase)/decrease in other assets		(140)	(25)
Decrease/(increase) in inventories		24	42
Increase/(decrease) in deferred revenue		-	(144)
Increase/(decrease) in trade and other payables		868	(151)
Net cash used in operating activities		(3,449)	(4,700)

Note 16. Reconciliation of loss after income tax to net cash used in operating activities

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YPB Group Ltd Notes to the consolidated financial statements For the year ended 31 December 2020

Note 17. Earnings per share

Loss after income tax attributable to the owners of YPB Group Limited Weighted average number of ordinary shares used in calculating basic/diluted earnings per share Basic/Diluted earnings per share	2020 2019 $’000 $’000 (10,724) (7,987)
	Number Number 1,755,907,764 998,465,494 Cents Cents (0.61) (0.80)

There are 664,000,000 in share options issued but not included in diluted earnings per share as these would have an antidilutive effect on earnings per share. These potential ordinary shares are antidilutive as their conversion to ordinary shares would decrease loss per share. If these share options were included in the calculation of diluted earnings per share, the weighted average number of shares used in the denominator would be 2,419,907,764.

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