JAYRIDE GROUP LIMITED — Annual Report 2019

Aug 28, 2019

==> picture [280 x 159] intentionally omitted <==

FY19 PRELIMINARY FINAL REPORT AND APPENDIX 4E

For the FY19 financial year ended 30 June 2019 Lodged with the ASX under listing Rule 4.3A. Jayride Group Limited ABN 49 155 285 528

==> picture [596 x 479] intentionally omitted <==

Jayride Group Limited Appendix 4E Preliminary final report

==> picture [59 x 35] intentionally omitted <==

1. Company details

Name of entity: Jayride Group Limited ABN: 49 155 285 528 Reporting period: For the year ended 30 June 2019 Previous period: For the year ended 30 June 2018

2. Results for announcement to the market

In the current year, the Company has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board that are relevant to its operations and effective for annual reporting periods commencing on or after 1 January 2018.

The adoption of other revised standards and Interpretations has no material impact to the financial position or performance of the Company in either the current or prior year.

			$
Revenue from net commissions and fees booked	up	71.4% to	3,280,500
Total earnings from ordinary activities	up	55.9% to	3,822,364
Loss from ordinary activities after tax attributable to the owners of Jayride
Group Limited	up	42.3% to	(8,201,109)
Loss for the year attributable to the owners of Jayride Group Limited	up	42.3% to	(8,201,109)

Dividends

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

Comments

The loss for the Company after providing for income tax amounted to $8,201,109 (30 June 2018: $5,762,692). Commentary on the results for the period is included in the Investor Presentation attached.

3. Net tangible assets

Net tangible assets per ordinary security	Reporting period Cents 2.15	Previous period Cents 8.09

4. Control gained over entities

Not applicable.

5. Loss of control over entities

Not applicable.

Jayride Group Limited Appendix 4E Preliminary final report

==> picture [59 x 35] intentionally omitted <==

6. 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.

7. Dividend reinvestment plans

Not applicable.

8. Details of associates and joint venture entities

Not applicable.

9. Foreign entities

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

Not applicable.

10. Audit qualification or review

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

The financial statements are in the process of being audited and an unqualified opinion is expected to be issued.

11. Attachments

Details of attachments (if any):

The Preliminary Financial Report of Jayride Group Limited for the year ended 30 June 2019 is attached.

12. Signed

Signed _________

Date: 29 August 2019

Rod Bishop Managing Director Sydney

==> picture [59 x 35] intentionally omitted <==

Jayride Group Limited ABN 49 155 285 528

Preliminary Financial Report - 30 June 2019

Jayride Group Limited Contents 30 June 2019

==> picture [59 x 35] intentionally omitted <==

Statement of profit or loss and other comprehensive income 2 Statement of financial position 3 Statement of changes in equity 4 Statement of cash flows 5 Notes to the financial statements 6

1

Jayride Group Limited Statement of profit or loss and other comprehensive income For the year ended 30 June 2019

==> picture [59 x 35] intentionally omitted <==

Note Revenue Net commission and fees booked Interest revenue calculated using the effective interest method Other income Total revenue Operational costs Advertising and marketing costs Employee and contractor costs Other operating costs Total operational costs Growth and corporate costs Engineering costs not capitalised Employee and contractor costs Share-based payments expense Other growth costs Corporate costs Total growth and corporate costs Non-operating costs Depreciation and amortisation Currency movements Finance costs Total non-operating costs Loss before income tax expense Income tax expense Loss after income tax expense for the year attributable to the owners of Jayride Group Limited Other comprehensive income for the year, net of tax Total comprehensive income for the year attributable to the owners of Jayride Group Limited Basic earnings per share 7 Diluted earnings per share 7	2019 $ 3,280,500 9,801 532,063	2018 $ 1,913,544 39,524 497,992 2,451,060 (1,413,195) (989,557) (943,573) (3,346,325) (239,040) (1,924,840) (1,162,198) (570,348) (432,046) (4,328,472) (515,021) (18,139) (5,795) (538,955) (5,762,692) - (5,762,692) - (5,762,692) Cents (8.41) (8.41)
	3,822,364
	(2,241,473) (1,634,782) (1,541,848)
	(5,418,103)
	(359,901) (2,027,210) (1,901,417) (690,800) (811,763)
	(5,791,091)
	(680,996) (21,238) (112,045)
	(814,279)
	(8,201,109) -
	(8,201,109) -
	(8,201,109)
	Cents (10.48) (10.48)

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

Jayride Group Limited Statement of financial position As at 30 June 2019

==> picture [59 x 35] intentionally omitted <==

Note Assets Current assets Cash and cash equivalents Trade and other receivables 1 Goods and services tax receivable Research and development receivable Prepayments Total current assets Non-current assets Deposits and bank guarantees Plant and equipment 2 Capitalised technology costs 3 Total non-current assets Total assets Liabilities Current liabilities Trade and other payables 4 Contract liabilities Employee benefits Future transport payments Total current liabilities Non-current liabilities Borrowings 5 Employee benefits Total non-current liabilities Total liabilities Net assets Equity Issued capital 6 Reserves Accumulated losses Total equity	2019 $ 1,446,031 877,842 46,775 958,871 46,934	2018 $ 3,560,216 628,080 31,877 853,544 74,956 5,148,673 323,890 211,785 2,201,726 2,737,401 7,886,074 1,092,134 - 140,278 498,834 1,731,246 - 44,530 44,530 1,775,776 6,110,298 15,902,025 1,724,634 (11,516,361) 6,110,298
	3,376,453
	323,890 203,356 2,415,348
	2,942,594
	6,319,047
	1,874,184 38,143 175,623 849,852
	2,937,802
	1,572,914 52,890
	1,625,804
	4,563,606
	1,755,441
	18,360,858 3,146,680 (19,752,097)
	1,755,441

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

3

Jayride Group Limited Statement of changes in equity For the year ended 30 June 2019

==> picture [59 x 35] intentionally omitted <==

Balance at 1 July 2017 Loss after income tax expense for the year Other comprehensive income for the year, net of tax Total comprehensive income for the year Transactions with owners in their capacity as owners: Contributions of equity, net of transaction costs (note 6) Share-based payments Convertible notes issued Balance at 30 June 2018 Balance at 1 July 2018 Adjustment for change in accounting policy Balance at 1 July 2018 - restated Loss after income tax expense for the year Other comprehensive income for the year, net of tax Total comprehensive income for the year Transactions with owners in their capacity as owners: Contributions of equity, net of transaction costs (note 6) Share-based payments (shares) Share-based payments (options) Share-based payments (warrants) Balance at 30 June 2019	Issued capital $ 5,694,278 - -	Reserves $ 760,948 - -	Accumulated losses $ (5,753,669) (5,762,692) -	Total equity $ 701,557 (5,762,692) -
	- 10,207,747 - -	- - 1,132,086 (168,400)	(5,762,692) - - -	(5,762,692) 10,207,747 1,132,086 (168,400)
	15,902,025	1,724,634	(11,516,361)	6,110,298
	Issued capital $ 15,902,025 -	Reserves $ 1,724,634 -	Accumulated losses $ (11,516,361) (34,627)	Total equity $ 6,110,298 (34,627)
	15,902,025 - -	1,724,634 - -	(11,550,988) (8,201,109) -	6,075,671 (8,201,109) -
	- 1,612,375 846,458 - -	- - 281,887 773,073 367,086	(8,201,109) - - - -	(8,201,109) 1,612,375 1,128,345 773,073 367,086
	18,360,858	3,146,680	(19,752,097)	1,755,441

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

4

Jayride Group Limited Statement of cash flows For the year ended 30 June 2019

==> picture [59 x 35] intentionally omitted <==

Note Cash flows from operating activities Receipts from customers (inclusive of GST) Payments to suppliers and employees (inclusive of GST) Grants received Interest received Interest and other finance costs paid Net cash used in operating activities Cash flows from investing activities Payments for plant and equipment 2 Payments for intangibles 3 Payments for security deposits Proceeds from disposal of property, plant and equipment Net cash used in investing activities Cash flows from financing activities Proceeds from issue of shares 6 Share issue transaction costs Proceeds from borrowings Loans to related parties Transaction costs related to borrowings Net cash from financing activities Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at the beginning of the financial year Effects of exchange rate changes on cash and cash equivalents Cash and cash equivalents at the end of the financial year	2019 $ 3,382,928 (8,136,326) 530,105 10,654 (18,101)	2018 $ 1,991,342 (6,490,066) 485,424 39,524 (5,795) (3,979,571) (191,713) (1,076,312) (286,360) - (1,554,385) 10,533,104 (355,470) - (1,828,513) - 8,349,121 2,815,165 767,190 (22,139) 3,560,216
	(4,230,740)
	(59,629) (1,321,021) - 6,541
	(1,374,109)
	1,707,975 (95,600) 2,000,000 - (95,440)
	3,516,935
	(2,087,914) 3,560,216 (26,271)
	1,446,031

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

5

Jayride Group Limited Notes to the financial statements 30 June 2019

==> picture [59 x 35] intentionally omitted <==

Note	1. Current assets - trade and other receivables	7
Note	2. Non-current assets - plant and equipment	7
Note	3. Non-current assets - capitalised technology costs	7
Note	4. Current liabilities - trade and other payables	8
Note	5. Non-current liabilities - borrowings	8
Note	6. Equity - issued capital	9
Note	7. Earnings per share	10

6

Jayride Group Limited Notes to the financial statements 30 June 2019

==> picture [59 x 35] intentionally omitted <==

Note 1. Current assets - trade and other receivables

Trade receivables Less: Allowance for expected credit losses (2018: Provision for impairment)	2019 $ 897,800 (19,958)	2018 $ 686,009 (57,929)
	877,842	628,080

Note 2. Non-current assets - plant and equipment

Fixtures and fittings - at cost Less: Accumulated depreciation Computer equipment - at cost Less: Accumulated depreciation Office equipment - at cost Less: Accumulated depreciation	2019 $ 173,161 (33,435)	2018 $ 129,036 (11,203)
	139,726	117,833
	146,818 (84,358)	146,301 (54,285)
	62,460	92,016
	2,631 (1,461)	2,646 (710)
	1,170	1,936
	203,356	211,785

Reconciliations

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

Balance at 1 July 2017 Additions Depreciation expense Balance at 30 June 2018 Additions Disposals Depreciation expense Balance at 30 June 2019	Fixtures and fittings $ 15,888 111,553 (9,608)	Computer equipment $ 49,345 77,679 (35,008)	Office equipment $ 148 2,481 (693)	Total $ 65,381 191,713 (45,309)
	117,833 44,125 - (22,232)	92,016 15,504 (5,422) (39,638)	1,936 - (15) (751)	211,785 59,629 (5,437) (62,621)
	139,726	62,460	1,170	203,356

Note 3. Non-current assets - capitalised technology costs

Capitalised technology costs Less: Accumulated amortisation	2019 $ 3,503,434 (1,088,086)	2018 $ 2,671,438 (469,712)
	2,415,348	2,201,726

7

Jayride Group Limited Notes to the financial statements 30 June 2019

==> picture [59 x 35] intentionally omitted <==

Note 3. Non-current assets - capitalised technology costs (continued)

Reconciliations

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

Balance at 1 July 2017 Additions Research and development tax offset Amortisation expense Balance at 30 June 2018 Additions Research and development tax offset Amortisation expense Balance at 30 June 2019 Note 4. Current liabilities - trade and other payables Trade payables Other payables Note 5. Non-current liabilities - borrowings Financing facility	2019 $ 1,289,951 584,233	Capitalised technology costs $ 2,080,461 1,076,313 (485,336) (469,712)
		2,201,726 1,321,021 (489,024) (618,375)
		2,415,348
		2018 $ 926,054 166,080
	1,874,184	1,092,134
	2019 $ 1,572,914	2018 $ -

Note 4. Current liabilities - trade and other payables

Note 5. Non-current liabilities - borrowings

8

Jayride Group Limited Notes to the financial statements 30 June 2019

==> picture [59 x 35] intentionally omitted <==

Note 5. Non-current liabilities - borrowings (continued)

The financing facility	represents borrowings from Pure Asset Management Pty Ltd as per terms below:
Amount	$3,000,000 in two tranches, being one tranche of $2,000,000 ('Initial Tranche') and a second
	optional tranche of $1,000,000 (between 1 January 2020 and 30 June 2020) ('Second Tranche').
Term	36 months from the date of drawdown.
Interest rate	10.50% per annum
Warrants issued	The warrants associated with the $2,000,000 Initial Tranche will have an exercise price which is
	the lower of a) $0.553; or b) a 25% premium to the raise price of any future capital raise requiring
	extraordinary general meeting ('EGM') approval to increase shares on issue by greater than 15%.
	The number of Initial Tranche warrants to be issued at the time of drawdown of the Initial Tranche
	will be 3,616,637 warrants, being $2,000,000 divided by the exercise price of $0.553.
	In the instance that the Company elects to draw down the Second Tranche, the warrants
	associated with the $1,000,000 Second Tranche will have an exercise price which is the lower of:
	a) 25% premium to the 30-day VWAP preceding drawdown of the Second Tranche; or b) a 25%
	premium to the raise price of any future capital raise requiring EGM approval to increase shares
	on issue by greater than 15%. The number of Second Tranche warrants to be issued will be
	$1,000,000 divided by the exercise price.
Right to compel	The Company may compel conversion of the Initial Tranche of 3,616,637 Warrants if the VWAP
conversion	exceeds $0.75 over a 30 day period.
Post conversion escrow Ordinary shares resulting from the exercise of warrants will be escrowed for a period of 6 months
	post conversion.

Loan early redemption The Company may redeem the loan early subject to standard commercial terms.

Note 6. Equity - issued capital Ordinary shares - fully paid Ordinary shares - held in Employees' Trust	2019 Shares 81,682,411 2,645,960	2018 Shares 75,575,283 -	2019 $ 18,360,858 -	2018 $ 15,902,025 -
	84,328,371	75,575,283	18,360,858	15,902,025

9

Jayride Group Limited Notes to the financial statements 30 June 2019

==> picture [59 x 35] intentionally omitted <==

Note 6. Equity - issued capital (continued)

Movements in ordinary share capital

Details Date Balance 1 July 2017 Issue of shares to new investors 18 August 2017 Issue of shares to new investors 18 August 2017 Issue of shares to employees on exercise of employee options 18 December 2017 Issue of shares to promoters 21 December 2017 Issue of shares under Initial Public Offer 17 January 2018 Issue of shares to employees under Employee Share Scheme ('ESS') 28 May 2018 Share issue costs Balance 30 June 2018 Issue of shares to employees 31 August 2018 Issue of shares to employees under ESS 29 November 2018 Issue of shares 3 January 2019 Issue of shares to employees 24 January 2019 Issue of shares to employees under ESS 1 March 2019 Issue of shares to employees under ESS 17 June 2019 Issue of shares to employees under ESS 20 June 2019 Share issue costs Balance 30 June 2019	Shares Issue price 44,870,772 4,463,292 $0.3200 18,119,904 $0.4200 4,798,512 $0.0000 247,520 $0.5000 3,000,000 $0.5000 75,283 $0.4000 - $0.0000 75,575,283 86,628 $0.4450 478,683 $0.4800 3,972,035 $0.4300 215,742 $0.4400 767,851 $0.4300 301,551 $0.2700 284,638 $0.2500 - $0.0000 81,682,411	$ 5,694,278 1,408,796 7,624,309 - 123,760 1,500,000 30,113 (479,231) 15,902,025 38,549 229,769 1,707,975 94,926 330,159 80,644 72,411 (95,600) 18,360,858

Note 7. Earnings per share

Loss after income tax attributable to the owners of Jayride Group Limited Weighted average number of ordinary shares used in calculating basic earnings per share Weighted average number of ordinary shares used in calculating diluted earnings per share Basic earnings per share Diluted earnings per share	2019 $ (8,201,109)	2018 $ (5,762,692)
	Number 78,238,903	Number 68,541,091
	78,238,903	68,541,091
	Cents (10.48) (10.48)	Cents (8.41) (8.41)

18,712,936 (2018: 16,334,738) options, 3,300,000 (2018: nil) performance options and 2,645,960 shares held in employees' Trust have been excluded from the above calculation as their inclusion would be anti-dilutive.

10

==> picture [596 x 644] intentionally omitted <==

Jayride Group Limited

ACN 155 285 528

Suite 1101, Level 11 55 Clarence Street Sydney NSW 2000 Australia corporate@jayride.com http://www.jayride.com