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JAYRIDE GROUP LIMITED Annual Report 2024

Aug 29, 2024

65156_rns_2024-08-29_f34287e4-aea6-4028-9de4-c1f8b855809c.pdf

Annual Report

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FY24 Results a nd Appendix 4E

Preliminary Final Report for the financial year ended 30 June 2024

Lodged with the ASX under Listing Rule 4.3A. Jayride Group Limited (ASX:JAY) ABN 49 155 285 528

Jayride Group Limited Appendix 4E Preliminary final report

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1. Company details

Name of entity: Jayride Group Limited ABN: 49 155 285 528 Reporting period: For the year ended 30 June 2024 Previous period: For the year ended 30 June 2023

2. Results for announcement to the market

2. Results for announcement to the market
% $
Total revenue and other income
up 4.9% to 5,446,002
Revenue from net commissions and fees booked
up 6.1% to 5,394,180
Loss from ordinary activities after tax attributable to the owners of Jayride
Group Limited
up 1.2% to (8,257,194)
Loss for the year attributable to the owners of Jayride Group Limited
up 1.2% to (8,257,194)

Comments

The Company's total revenue and other income during the year was $5,446,002 (2023: $5,191,245), representing an increase of 4.9% compared to the corresponding period.

The loss for the Company after providing for income tax amounted to $8,257,194 (2023: $8,160,212), representing an increase of 1.2% compared to the corresponding period.

3. Net tangible assets

3. Net tangible assets
Reporting Previous
period period
Cents Cents
Net tangible assetsper ordinarysecurity (1.79) (0.17)

4. Control gained over entities

Not applicable.

5. Loss of control over entities

Not applicable.

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.

Jayride Group Limited Appendix 4E Preliminary final report

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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. The directors anticipate that the auditor's report will contain an unqualified audit opinion with a paragraph addressing material uncertainty related to going concern.

11. Attachments

Details of attachments (if any):

The Preliminary Financial Report of Jayride Group Limited for the year ended 30 June 2024 is attached.

12. Signed

As authorised by the Board of Directors

Signed _________

Date: 30 August 2024

Rod Cuthbert Executive Chairman Sydney

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Jayride Group Limited

ABN 49 155 285 528

Preliminary Financial Report - 30 June 2024

Jayride Group Limited Contents 30 June 2024

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Jayride Group Limited
Contents
30 June 2024
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 2024

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Jayride Group Limited
Statement of profit or loss and other comprehensive income
For the year ended 30 June 2024
Revenue
Net commission and fees booked
Other income
Note 2024
$
5,394,180
51,822
2023
$
5,085,421
105,824
Total revenue and income 5,446,002 5,191,245
Expenses
Operating costs
Corporate and regulatory costs
Business improvement costs
Share-based payments expense
Impairment of capitalised technology costs
Depreciation and amortisation
Currency movements
Finance costs
1
2
6
2
2
2
(5,166,286)
(683,305)
(3,996,143)
16,495
(2,898,346)
(731,092)
(128,090)
(116,429)
(4,737,768)
(732,633)
(3,913,853)
(656,504)
(1,794,000)
(1,390,640)
(20,521)
(105,538)
Total expenses (13,703,196) (13,351,457)
Loss before income tax expense
Income tax expense
(8,257,194)
-
(8,160,212)

-
Loss after income tax expense for the year attributable to the owners of Jayride
Group Limited
Other comprehensive income for theyear,net of tax
(8,257,194)
-
(8,160,212)

-
Total comprehensive loss for the year attributable to the owners of Jayride Group
Limited
(8,257,194) (8,160,212)
Basic loss per share
Diluted loss per share
3
3
Cents
(3.67)
(3.67)
Cents
(4.26)
(4.26)

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

notes

2

Jayride Group Limited Statement of financial position As at 30 June 2024

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Jayride Group Limited
Statement of financial position
As at 30 June 2024
Note 2024 2023
$ $
Assets
Current assets
Cash and cash equivalents 924,022 2,517,966
Trade and other receivables 4 1,340,205 1,338,927
Contract assets 974,181 1,078,432
Deposits - 18,328
Prepayments 156,060 191,563
Total current assets 3,394,468 5,145,216
Non-current assets
Plant and equipment 5 26,781 50,495
Capitalised technologycosts 6 - 2,467,847
Total non-current assets 26,781 2,518,342
Total assets 3,421,249 7,663,558
Liabilities
Current liabilities
Trade and other payables 7 4,082,178 3,078,832
Contract liabilities 147,160 153,251
Employee benefits 299,098 356,417
Future transportpayments 1,802,112 1,847,014
Total current liabilities 6,330,548 5,435,514
Non-current liabilities
Borrowings 8 1,225,912 -
Derivative financial instruments 8 44,755 -
Employee benefits 61,456 99,920
Total non-current liabilities 1,332,123 99,920
Total liabilities 7,662,671 5,535,434
Net(liabilities)/assets (4,241,422) 2,128,124
Equity
Issued capital 9 43,874,159 42,054,859
Reserves 10 1,723,615 1,859,999
Accumulated losses (49,839,196) (41,786,734)
Total(deficiency)/equity (4,241,422) 2,128,124

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 2024

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Accumulated
Issued capital Reserves losses Total equity
$ $ $ $
Balance at 1 July 2022 37,875,428 2,135,662 (34,214,036) 5,797,054
Loss after income tax expense for the year - - (8,160,212) (8,160,212)
Other comprehensive income for theyear,net of tax - - - -
Total comprehensive loss for the year - - (8,160,212) (8,160,212)
Transactions with owners in their capacity as owners:
Contributions of equity, net of transaction costs (note 9) 4,070,778 - - 4,070,778
Share-based payments (shares) 344,653 17,851 - 362,504
Share-based payments (options) - 294,000 - 294,000
Expiry of options (note 10) - (587,514) 587,514 -
Sharepurchase for ESS Trust(note 9) (236,000) - - (236,000)
Balance at 30 June 2023 42,054,859 1,859,999 (41,786,734) 2,128,124
Accumulated Total
Issued capital Reserves losses deficiency
$ $ $ $
Balance at 1 July 2023 42,054,859 1,859,999 (41,786,734) 2,128,124
Loss after income tax expense for the year - - (8,257,194) (8,257,194)
Other comprehensive income for theyear,net of tax - - - -
Total comprehensive loss for the year - - (8,257,194) (8,257,194)
Transactions with owners in their capacity as owners:
Contributions of equity, net of transaction costs (note 9) 1,790,206 - - 1,790,206
Share-based payments (shares) 29,094 (45,882) - (16,788)
Share-based payments (options) - 293 - 293
Expiry of options (note 10) - (204,732) 204,732 -
Other reserves - convertible notes - 113,937 - 113,937
Balance at 30 June 2024 43,874,159 1,723,615 (49,839,196) (4,241,422)

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 2024

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Jayride Group Limited
Statement of cash flows
For the year ended 30 June 2024
Note 2024 2023
$ $
Cash flows from operating activities
Net receipts from bookings (inclusive of GST) 5,491,062 6,281,844
Payments to suppliers and employees (inclusive of GST) (8,945,245) (9,145,676)
Grants funding for operating activities 51,822 109,164
Interest and other income received - 77,728
Interest and other finance costspaid (6,366) (2,828)
Net cash used in operatingactivities (3,408,727) (2,679,768)
Cash flows from investing activities
Payments for plant and equipment (2,081) (23,925)
Payments for capitalised technology costs 6 (1,141,146) (2,422,595)
Grants funding for investing activities - 115,760
Proceeds from disposal ofproperty, plant and equipment 5,350 -
Net cash used in investingactivities (1,137,877) (2,330,760)
Cash flows from financing activities
Proceeds from issue of shares 9 2,000,136 4,390,000
Share issue transaction costs 9 (209,930) (319,222)
Proceeds from borrowings 2,865,286 178,000
Repayment of borrowings (1,365,286) (178,000)
Transaction costs related to loans and borrowings (225,459) (96,110)
Sharepurchase for ESS Trust - (242,390)
Net cash from financingactivities 3,064,747 3,732,278
Net decrease in cash and cash equivalents (1,481,857) (1,278,250)
Cash and cash equivalents at the beginning of the financial year 2,517,966 3,688,689
Effects of exchange rate changes on cash and cash equivalents (112,087) 107,527
Cash and cash equivalents at the end of the financialyear 924,022 2,517,966

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 2024

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Note 1. Operating costs 7
Note 2. Expenses 7
Note 3. Loss per share 7
Note 4. Trade and other receivables 8
Note 5. Plant and equipment 9
Note 6. Capitalised technology costs 10
Note 7. Trade and other payables 10
Note 8. Borrowings 11
Note 9. Issued capital 12
Note 10. Reserves 14

6

Jayride Group Limited Notes to the financial statements 30 June 2024

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Note 1. Operating costs

Note 1. Operating costs
2024 2023
$ $
Advertising and marketing costs 1,908,998 1,724,502
Direct operating costs 1,209,410 981,148
Other supportingoperatingcosts 2,047,878 2,032,118
5,166,286 4,737,768

Note 2. Expenses

Note 2. Expenses
2024 2023
$ $
Loss before income tax includes the following specific expenses:
Depreciation
Fixtures and fittings 78 127
Computer equipment 20,367 31,342
Total depreciation(note 5) 20,445 31,469
Amortisation
Capitalised technologycosts(note 6) 710,647 1,359,171
Total depreciation and amortisation 731,092 1,390,640
Finance costs
Interest and finance charges paid/payable on borrowings 6,366 105,538
Transaction costs related to borrowing 110,063 -
Total finance costs 116,429 105,538
Currency movements
Net foreign exchange loss 128,090 20,521
Superannuation expense
Defined contribution superannuation expense 357,134 380,389
Share-based payments expense
Share-basedpayments expense (16,495) 656,504
Accounting policy for finance costs
Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs are expensed in the
period in which they are incurred.

Note 3. Loss per share

Note 3. Loss per share
2024 2023
$ $
Loss after income tax attributable to the owners of Jayride GroupLimited (8,257,194) (8,160,212)

7

Jayride Group Limited Notes to the financial statements 30 June 2024

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Note 3. Loss per share (continued)

Note 3. Loss per share (continued)
Number Number
Weighted average number of ordinaryshares used in calculatingbasic lossper share 224,883,558 191,628,494
Weighted average number of ordinaryshares used in calculatingdiluted lossper share 224,883,558 191,628,494
Cents Cents
Basic loss per share (3.67) (4.26)
Diluted loss per share (3.67) (4.26)
7,906,303 (30 June 2023: 8,829,472) share options and 1,975,000 (30 June 2023: 1,975,000) performance options have been
excluded from the above calculations as their inclusion would be anti-dilutive.

Note 4. Trade and other receivables

Note 4. Trade and other receivables
2024 2023
$ $
Current assets
Trade receivables 1,247,028 1,154,519
Less: Allowance for expected credit losses (199,011) (17,973)
1,048,017 1,136,546
Other receivables 212,497 -
Goods and services tax receivable 79,691 202,381
1,340,205 1,338,927

Allowance for expected credit losses

The Company has recognised a loss of $184,104 in profit or loss in respect of the expected credit losses for the year ended 30 June 2024 (2023: reversal of loss of $6,522).

The ageing of the receivables and allowance for expected credit losses provided for above are as follows:

Allowance for expected Allowance for expected
Expected credit loss rate Gross amount credit losses
2024 2023 2024 2023 2024 2023
% % $ $ $ $
Current - - 664,581 937,065 - -
Less than 3 months overdue 2.39% 0.52% 257,527 150,128 6,162 776
3 to 6 months overdue 50.01% 21.96% 115,195 50,219 57,608 11,026
Over 6 months overdue 64.49% 36.07% 209,725 17,107 135,241 6,171
1,247,028 1,154,519 199,011 17,973

8

Jayride Group Limited Notes to the financial statements 30 June 2024

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Note 4. Trade and other receivables (continued)

Movements in the allowance for expected credit losses are as follows:

2024 2023
$ $
Opening balance 17,973 332,591
Additional provisions recognised 184,104 -
Receivables written off during the year as uncollectable (3,066) (308,096)
Unused amounts reversed - (6,522)
Closingbalance 199,011 17,973

Note 5. Plant and equipment

Note 5. Plant and equipment
2024 2023
$ $
Non-current assets
Fixtures and fittings - at cost 3,097 3,097
Less: Accumulated depreciation (2,964) (2,886)
133 211
Computer equipment - at cost 190,106 224,202
Less: Accumulated depreciation (163,579) (173,918)
26,527 50,284
Office equipment - at cost 488 367
Less: Accumulated depreciation (367) (367)
121 -
26,781 50,495

Reconciliations

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

Fixtures and Computer Office
fittings equipment equipment Total
$ $ $ $
Balance at 1 July 2022 338 57,702 - 58,040
Additions - 26,500 - 26,500
Disposals - (2,576) - (2,576)
Depreciation expense (127) (31,342) - (31,469)
Balance at 30 June 2023 211 50,284 - 50,495
Additions - 1,960 121 2,081
Disposals - (5,350) - (5,350)
Depreciation expense (78) (20,367) - (20,445)
Balance at 30 June 2024 133 26,527 121 26,781

9

Jayride Group Limited Notes to the financial statements 30 June 2024

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Note 6. Capitalised technology costs

Note 6. Capitalised technology costs
2024 2023
$ $
Non-current assets
Capitalised technology costs 9,811,209 8,670,063
Less: Accumulated amortisation (5,583,296) (4,904,584)
Less: Impairment (4,227,913) (1,585,057)
- 2,180,422
Website - at cost 531,823 531,823
Less: Accumulated amortisation (67,391) (35,455)
Less: Impairment (464,432) (208,943)
- 287,425
- 2,467,847

Reconciliations

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

Capitalised
technology
costs Website Total
$ $ $
Balance at 1 July 2022 - restated 3,202,495 - 3,202,495
Additions 1,890,772 531,823 2,422,595
Research and development tax offset (4,072) - (4,072)
Impairment of assets (1,585,057) (208,943) (1,794,000)
Amortisation expense (1,323,716) (35,455) (1,359,171)
Balance at 30 June 2023 2,180,422 287,425 2,467,847
Additions 1,141,146 - 1,141,146
Impairment of assets (2,642,857) (255,489) (2,898,346)
Amortisation expense (678,711) (31,936) (710,647)
Balance at 30 June 2024 - - -

Impairment testing completed in February 2024 referencing historical growth rates and the new cost base resulted in a 100% write-down of the company's website and technology assets. The total impairment recognised in the profit or loss totalled $2,898,346.

Note 7. Trade and other payables

Note 7. Trade and other payables
2024 2023
$ $
Current liabilities
Trade payables 3,363,005 1,981,515
Otherpayables 719,173 1,097,317
4,082,178 3,078,832

10

Jayride Group Limited Notes to the financial statements 30 June 2024

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Note 8. Borrowings

Note 8. Borrowings
2024 2023
$ $
Non-current liabilities
Convertible notes* 1,225,912 -
  • The conversion feature is recognised as an embedded derivative with a fair value of $44,755.

Convertible notes

The Company has issued $,1,500,000 of convertible notes, with a face value of $2,000,000.

A summary of the terms of the convertible notes are detailed out below:

Tranche 1 Tranche 2 Total
Amount raised $525,000 $975,000 $1,500,000
Issue date 19 February 2024 8 April 2024
Note face value on issue (in $700,000 $1,300,000 $2,000,000 (including a
aggregate) $500,000 component of
capitalised year one interest
at 33.33% per annum
Transaction costs $31,500 $90,245 $121,745
Conversion price Convertible at a 20% discount to the five day VWAP prior to conversion subject to a conversion
price ceiling of $0.05 and a floor of $0.02. In the event the ten day VWAP of Jayride is below
$0.02, noteholders may, after that point, convert the note at a 20% discount to the five day
VWAP irrespective of the floor price.

Conversion Noteholder may convert at any time at their election. Any notes not converted at maturity will be redeemed. Maturity 24 months from note issue. Redemption The Company may redeem the notes (repay the notes in cash) at any time with no penalty. Interest In the first year, interest is prepaid by way of a capitalisation into the note face value ($500,000, being 33.33% per annum). There is otherwise no interest payable in the first year. If the notes remain outstanding after 12 months, interest will become payable at 15% per annum accrued daily and paid monthly in cash on the outstanding notes face value. Security First ranking security interest in all present and after acquired property of the company. Attaching options 30,000,000 options each exercisable at $0.05 per option expiring 31 December 2027 issued pro-rata to the noteholders on 26 April 2024.

An additional 4,000,000 options on the same terms as part of their Lead Manager mandate were issued on 26 April 2024.

11

Jayride Group Limited Notes to the financial statements 30 June 2024

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Note 8. Borrowings (continued)

Accounting policy for borrowings

Initial recognition and measurement

At inception, the convertible note instrument is bifurcated into two components: the host debt liability and the embedded derivative conversion option.

  • Embedded derivative conversion option: The fair value of the embedded derivative conversion option is determined at inception using an appropriate valuation model (e.g., Monte-Carlo simulation-based valuation methodology). This fair value is recognised as a financial liability.

  • Host debt liability: The residual amount, after deducting the fair value of the embedded derivative conversion option from the total proceeds received, is assigned to the host debt liability. The host debt liability is initially recognised at fair value, which is typically the residual amount.

Subsequent measurement

  • Embedded derivative conversion option: The embedded derivative conversion option is subsequently measured at fair value at each reporting date. Changes in the fair value are recognised in profit or loss.

  • Host debt liability: The host debt liability is subsequently measured at amortised cost using the effective interest method. Interest expense is recognised in profit or loss over the term of the convertible note.

Derecognition

The convertible note instrument is derecognised when the obligation is discharged, cancelled, or expires. Upon conversion, the carrying amount of the host debt liability and the fair value of the embedded derivative conversion option are reclassified to equity.

Note 9. Issued capital

Note 9. Issued capital
2024 2023 2024 2023
Shares Shares $ $
Ordinary shares - fully paid 235,600,025 203,374,022 43,874,159 42,054,859
Ordinaryshares - held in Employees' Trust 709,093 263,780 - -
236,309,118 203,637,802 43,874,159 42,054,859

12

Jayride Group Limited Notes to the financial statements 30 June 2024

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Note 9. Issued capital (continued)

Movements in ordinary share capital

Movements in ordinary share capital
Details Date Shares Issue price $
Balance 1 July 2022 176,258,277 37,875,428
Issue of shares to employees under ESS 5 July 2022 645,483 $0.1325 85,527
Issue of shares to employees under ESS 18 October 2022 561,598 $0.1392 78,157
Acquisition of securities by Trust funded by Jayride 15 November 2022 (550,000) $0.1820 (100,102)
Share issue costs 30 November 2022 - (34,600)
Share issue costs 1 December 2022 - (218,600)
Issue of shares - Institutional placement 2 December 2022 24,235,294 $0.1700 4,120,000
Share issue costs 2 December 2022 - (43,534)
Acquisition of securities by Trust funded by Jayride 31 August 2022 (553,826) $0.2004 (111,000)
Acquisition of securities by Trust funded by Jayride 6 December 2022 (136,800) $0.1820 (24,898)
Issue of shares - Share Purchase Plan 23 December 2022 1,588,250 $0.1700 270,000
Share issue costs 23 December 2022 - (2,226)
Share issue costs 1 January 2023 - (20,262)
Issue of shares to employees under ESS 18 January 2023 625,098 $0.1550 96,890
Issue of shares to employees under ESS 19 April 2023 700,648 $0.1200 84,079
Balance 30 June 2023 203,374,022 42,054,859
Issue of shares 5 October 2023 6,153,848 $0.0650 400,000
Share issue costs 24 October 2023 - (18,225)
Share issue costs 27 October 2023 - (6,000)
Issue of shares 30 October 2023 15,179,827 $0.0650 986,689
Share issue costs 30 October 2023 - (95,905)
Issue of shares 31 October 2023 9,437,641 $0.0650 613,447
Share issue costs 15 November 2023 - (14,161)
Share issue costs 31 December 2023 - (64,944)
Share issue costs 9 January 2023 - (10,099)
Issue of shares to employees under ESS 22 February 2024 1,454,687 $0.0200 29,094
Share issue costs 26 February2024 - (596)
Balance 30 June 2024 235,600,025 43,874,159

Movements in shares held in Employees Trust

Details Date Shares
Balance 1 July 2022 125,981
Issue of shares to employees 5 July 2022 (645,483)
Acquisition of securities by Trust funded by Jayride 31 August 2022 553,826
Issue of shares to employees 18 October 2022 (561,598)
Acquisition of securities by Trust funded by Jayride 15 November 2022 550,000
Issue of shares to employees 18 January 2023 (625,098)
Acquisition of securities by Trust funded by Jayride 6 December 2022 136,800
Shares issued to Trust 28 February 2023 630,000
Issue of shares to employees 19 April 2023 (700,648)
Shares issued to Trust 9 June 2023 800,000
Balance 30 June 2023 263,780
Share issued to Trust 22 February 2024 1,900,000
Issue of shares to employees 22 February2024 (1,454,687)
Balance 30 June 2024 709,093

13

Jayride Group Limited Notes to the financial statements 30 June 2024

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Note 10. Reserves

Note 10. Reserves
2024 2023
$ $
Share-basedpayments reserve 1,723,615 1,859,999

Share-based payments reserve

The 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.

Movements in share-based payments reserve

Movements in share-based payments reserve
Share-based payments
Equity Options Other Total
$ $ $ $
Balance at 1 July 2022 98,248 2,037,414 - 2,135,662
Share-based payments (shares) 17,851 - - 17,851
Share-based payments (options) - 294,000 - 294,000
Transfer in relation to expiryof share options - (587,514) - (587,514)
Balance at 30 June 2023 116,099 1,743,900 - 1,859,999
Share-based payments (shares) (116,098) - - (116,098)
Share-based payments (options) - 293 - 293
Transfer in relation to expiry of share options - (204,732) - (204,732)
Shares to employees under ESS (Q2 2024) 20,503 - - 20,503
Shares to employees under ESS (Q2nd Half 2024) 49,713 - - 49,713
Other reserves - convertible notes - - 113,937 113,937
Balance at 30 June 2024 70,217 1,539,461 113,937 1,723,615

14

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Jayride Group Limited (ASX:JAY) ABN 49 155 285 528 [email protected] http://www.jayride.com